RFA CEO Unveils 10-Point Ethanol Industry Plan

nec15-dinneen-sotiDuring his traditional State of the Industry speech at the National Ethanol Conference, Renewable Fuels Association (RFA) President and CEO Bob Dinneen today unveiled a 10-point plan for the future of the ethanol industry.

“The state of the ethanol industry is strong,” Dinneen declared, highlighting last year’s success despite the Environmental Protection Agency’s (EPA) indecision and proposed cuts to the Renewable Fuel Standard (RFS), pointing to the expansion of the ethanol market globally, and highlighting the emergence of cellulosic ethanol.

But, Dinneen says “there is much work left to do” and “RFA is committed to an aggressive 10-point agenda that will move the industry forward and assure continued growth and evolution.”

1. Get the Renewable Fuel Standard (RFS) on a growth trajectory that will crack the blend wall and motivate investment in new cellulose technologies
2. Grow market opportunities for higher-level ethanol blends including E15 and E85
3. Secure parity for E10 and E15 with respect to EPA’s RVP regulations
4. Expand export markets
5. Create a level playing field for cellulosic biofuels by securing a long-term tax incentive
6. Develop a roadmap for Renewable Super Premium (RSP)
7. Support low carbon fuels programs “done right” and developed with the best available science
8. Improve railroad service while prioritizing highly volatile crude oil for railcar safety modifications
9. Continue to promote safety practices and procedures both at the plant and in the transport of ethanol
10 Provide detailed technical guidance that establishes a solid foundation for the industry’s fuel marketplace and policy priorities

Read Dinneen’s remarks, see the video of the remarks, and download the audio here: RFA CEO Bob Dinneen Remarks at NEC 15

2015 National Ethanol Conference Photo Album

State of the Ethanol Industry – RFA CEO Bob Dinneen

This morning at 8am central we will live stream the session from the National Ethanol Conference featuring Renewable Fuels Association CEO Bob Dinneen. Bob will deliver this annual state of the industry address a few minutes after 8am and we’ll be recording it so that you can watch and listen later if you miss the broadcast or want to review it. All you’ll have to do is click on the player button in the video embed below when we’re live.

Post Update: Below is the recording of the presentation.


Live stream videos at Ustream

2015 National Ethanol Conference Photo Album

Growth, Environmental Groups Comment on CARB

growth-energy-logoGrowth Energy and environmental groups are adding their voices of comments to California’s proposal to its clean air regulations. In a news release, Growth says the California Air Resources Board’s (CARB) proposed amendments to the state’s Low Carbon Fuels Standard (LCFS) Regulation and the Proposed Regulation on the Commercialization of Alternative Diesel Fuels are unnecessary under the state’s environmental mandates.

David Bearden, General Counsel of Growth Energy noted, “If adopted, the current LCFS proposal will have a devastating impact on Growth Energy’s members, who will be forced to exit from the California alternative fuels market. Such an outcome will likely trigger the cost-containment caps in the proposed regulation, and any claimed benefits of the LCFS program will be compromised or lost.”

Specifically, the comments noted:

The LCFS regulation is no longer needed to achieve the greenhouse gas reductions sought in the 2009 LCFS regulation. Since the Board first adopted the LCFS regulation in 2009, much has changed in efforts by the state and federal government to reduce greenhouse gas (“GHG”) emissions from motor vehicles. Growth Energy presented a proposed alternative to the LCFS regulation to CARB staff in June 2014 that would simply adjust California’s cap-and-trade regulation to account for any incremental GHG emission reductions forgone by eliminating the LCFS. Following review of Growth Energy’s proposal, the CARB staff agreed with Growth Energy that Growth Energy’s proposal would likely achieve the same level of GHG emissions reductions as the 2009 LCFS regulation through 2020. Growth Energy’s proposal had none of the unintended negative environmental consequences of the 2009 LCFS regulation, which have been the subject of litigation, and would have eliminated the need for California businesses and consumers to pay for the LCFS program ─ costs that the CARB staff now says may range up to about 12 cents per gallon by 2020.

Growth added that the new justification for the LCFS regulation ignores the federal renewable fuels program, and CARB is not properly accounting for the beneficial effects of the federal renewable fuels standards.

Those sentiments are echoed by the Energy Future Coalition (EFC) and Urban Air Initiative (UAI), which are urging CARB to bring ethanol into the mix.

“Simply replacing gasoline, which is increasingly carbon intensive, with ethanol provides substantial carbon reductions. Using that ethanol to replace toxic compounds used for octane provides a dual benefit of protecting public health,” said David VanderGriend, President of UAI.

“Our research has shown that there is a clear linkage to gasoline and a range of negative health effects. So reducing carbon isn’t just a matter of greenhouse gas and potential climate change but also saving lives by reducing toxic emissions.”

20th National Ethanol Conference Kicks Off

nec15-bob-kennyFootball Hall of Fame member Kenny Houston helped Renewable Fuels Association (RFA) president and CEO Bob Dinneen get the early activities for the 20th annual National Ethanol Conference underway on Ash Wednesday in Dallas.

Houston is a former American football defensive back who played for the Houston Oilers and then the Washington Redskins between 1967 and 1980, but today he was on the golf course instead of the football field for the annual NEC golf tournament. While he was greeting golfers, two bus loads of conference attendees headed to downtown Dallas to step back in history and learn more about that fateful day in November 1963 when President John F. Kennedy was assassinated.

Dinneen is excited to be celebrating 20 years of ethanol this year and happy to see so many from the industry making the trip to Dallas this week. “We’re coming off the single most profitable year in the industry’s history, but at the same time we’re looking at another tough year – it’s a commodity market,” said Dinneen. “But this is an industry that has been seasoned, that has seen tough times, that has seen good times, and is prepared for either.”

The theme of this year’s conference is Going Global and Dinneen says the program will focus on the future of the ethanol industry in the export market, which Dinneen says is already booming. “It was critical to the industry’s profitability last year,” said Dinneen, noting exports of 836 million gallons, or about six percent of production, to over 50 countries worldwide.

Listen to Chuck’s interview with Bob here and tune in at 8:10 am Central time tomorrow to hear his state of the industry speech live: Interview with Bob Dinneen, RFA

2015 National Ethanol Conference Photo Album

E15 Would Cut 358K Tons of CO2 Emissions in MN

mnbiofuelsassoc1A new study is showing how a 15 percent blend of ethanol, E15, would cut hundreds of thousands of tons of carbon dioxide (CO2) emissions in Minnesota. This news release from Minnesota Bio-Fuels Association touts an analysis by the University of Illinois at Chicago.

In response to a query by the Minnesota Bio-Fuels Association, Dr Steffen Mueller, principal research economist at the University of Illinois at Chicago, said a gallon of E15 saves 1.26 g of CO2 equivalent (CO2e) per megajoule over regular E10 (gasoline that contains 10 percent ethanol). CO2e includes carbon dioxide, nitrous oxide and methane.

Annual gasoline consumption in Minnesota averages 2.4 billion gallons. Should all 2.4 billion gallons be converted to E15 from E10, CO2e savings in the state would total 358,000 metric tons annually, Mueller said.

Using the U.S. Environmental Protection Agency’s (EPA) greenhouse gas equivalencies calculator, this would amount to eliminating 75,368 passenger vehicles from Minnesota’s roads annually.

“Dr Mueller’s technical analysis is a clear illustration of the benefits E15 has in reducing greenhouse gas emissions in Minnesota.

The 358,000 tons of emissions saved by E15 is on top of the savings already eliminated by using E10, bringing the total CO2e savings to 1.07 million metric tons annually in Minnesota, the equivalent of taking 225,895 vehicles off Minnesota’s roads annually.

RFA Wants Calif. to Use Real-World Ethanol Data

RFANewlogoA group advocating for ethanol wants the State of California to use real-world data when it comes to carbon analysis. This news release from the Renewable Fuels Association (RFA) says the group is calling on the California Air Resources Board (CARB) to revise its Low Carbon Fuel Standard (LCFS) re-adoption proposal to reflect recent scientific advances and new empirical data regarding the actual impacts of biofuels on global land use patterns.

In comments submitted to CARB Chairwoman Mary Nichols, RFA noted that while steps have been taken to slightly improve the program in the re-adoption proposal, RFA remains “deeply concerned by several aspects of the proposal,” noting that CARB’s inclusion of a flawed indirect land use (ILUC) change analysis “threatens the long-term durability of the LCFS program.”

RFA points to the central role that grain-based ethanol has played in LCFS compliance over the past four years, noting that nearly 60 percent of all LCFS credits were generated by ethanol. Yet, despite the vital importance of grain ethanol to the program, the proposed ILUC penalty assessed against corn ethanol “will make the use of most grain ethanol infeasible for compliance as early as 2016.”

The comments explain that “CARB’s ILUC analysis remains technically and methodologically flawed, and grossly overstates the land use impacts associated with biofuels expansion.”

RFA points to a recent study by Iowa State University that finds the world’s farmers have responded to increased demand for crops by using existing cropland more efficiently, not by converting native forest and grassland to cropland, as assumed by CARB.

USGC Helped Move DDGS Exports in 2014

usgc-winter-grayThe U.S. Grains Council (USGC) held its winter meeting last week in Costa Rica where more than 250 delegates met to take a look back at last year and assess export opportunities.

Chairman Ron Gray says one of big issues of 2014 was with the ethanol co-product distillers grains (DDGS) and China. “At the end of the year, our exports were one of the highest years for DDGS on record,” said Gray. “The Grains Council was instrumental in mitigating that process so that trade can continue.”

Gray, who is a farmer from Illinois, believes it’s important for producers to be involved in trade policy. “I think combines would be easier to fix than trade policy,” he said. “We try to address the next problem so we can keep trade moving.”

Gray says U.S. sorghum picked up some exports to China last year to pick up the slack caused by the biotech trait issue with corn, which allowed them to remain active in the market, but ultimately it’s the growing demand for corn that is benefiting farmers back home.

The Andersons Grain Group Head to Retire

Dennis Addis (left) and Neill McKinstray

Dennis Addis (left) and Neill McKinstray

The Andersons, Inc. Grain Group President Denny Addis has announced plans to retire in May. According to the company, Ethanol Group president Neill C. McKinstray will assume leadership over both groups at that time.

“Denny has a stellar 43-year record with The Andersons and during his tenure has exhibited faithful service and exceptional leadership,” says Hal Reed, Chief Operating Officer.

Addis began his career with the company in 1971 bagging fertilizer and loading trucks as a part-time employee while a student at the University of Toledo. He spent all but three of his 43 years in the Plant Nutrient Group, ultimately serving as the group’s president for 11 years. He has served as the president of the Grain Group since 2012.

McKinstray is a 39-year veteran with The Andersons, including more than 30 years working at increasing levels of responsibility in the Grain Group. In 2011 he was named as President of the newly-formed Ethanol Group, which he has led with great success.

Golden Grain Marks Billion Gallons of Ethanol

Golden Grain Energy in Mason City, Iowa is celebrating the production of its one billionth gallon of ethanol this month.

gge-billion-shirts“This is a huge occasion for the plant, the staff, and the community as a whole,” said Chad Kuhlers, Chief Operations Officer of Golden Grain Energy. “I believe we are the first single location ethanol plant in the country to reach this production mark and it couldn’t have been done without the support from the shareholders, community and the great work from our employees over the years.”

The ethanol plant, which started production in December 2004, celebrated the milestone on Monday during its annual meeting with special guests including Iowa Secretary of Agriculture Bill Northey and Senator Chuck Grassley (R-IA). Plant employees wore special t-shirts to note the special occasion.

gge-grassley“This achievement represents a lot of work from farmer to producer to truck driver. Each stage of production leads to a tremendously beneficial final product,” said Sen. Grassley.

“This remarkable milestone by Golden Grain Energy is a great opportunity to celebrate the tremendous impact this plant and the 42 other ethanol refineries have had in reducing our dependence on foreign oil, protecting our environment and boosting the Iowa economy,” added Northey.

That billion gallons of ethanol represents over 351 million bushels of corn and a nice boost for the local economy, according to American Coalition for Ethanol Executive Vice President Brian Jennings. “Golden Grain Energy has … paid out more than $2 billion dollars to corn farmers, suppliers and service providers, and employees, and returned nearly $137 million dollars to its investors,” said Jennings in a congratulatory statement.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen was on hand at the company’s groundbreaking ceremony in 2003. “It has been a privilege to watch the company grow and thrive and I can’t wait to see where they will take it from here,” said Dinneen.

Golden Grain Energy has a nameplate capacity of 115 million gallons per year.

Murphy USA E15 Expansion Brings Call for Law

beale1The announcement by Murphy USA to offer a 15 percent blend of ethanol, E15, at more locations in Chicago is prompting a city councilman calling for an ordinance to support renewable fuel efforts in the city. Alderman Anthony Beale has been working for some time now to get an E15 ordinance on the book.

“While I welcome E15 to our region, it pains me that due to our 7-month process of debate, Chicago retailers have not had the ability to offer E15 first and therefore to more ably compete with suburban sellers. This news, as welcome as it is, underscores the need to make sure the market is similarly open to retailers in the city, where Big Oil currently has the ability to block this choice of fuels from the market.

“As a national distributor and retailer, Murphy USA can offer whatever products they like. Chicago retailers, on the other hand, are at the mercy of the Big Oil companies, who as we have seen through the thousands of dollars they’ve spent on ads, will go to any lengths to keep drivers dependent on fossil fuel, whatever the consequences for the health of our air and residents.

“It’s time to end the monopoly and stranglehold of the oil companies – who keep us dependent on foreign oil and give us high prices and petcoke in return. It’s time – for the good of Chicago’s air, for the good of Chicago’s health, for the good of Chicago’s beleaguered filling-station owners – to pass the Clean the Air with E15 ordinance.”

Beale’s ordinance has enjoys some pretty widespread support, including backers from the American Council on Renewable Energy, American Lung Association in Illinois, Chicago gas station owner Luke Casson, as well as several other biofuel, agribusiness and environmental groups.

ICM to Increase Efficiency of Nebraska Ethanol Plant

icm_logo1ICM, Inc. is partnering with E Energy Adams LLC to upgrade a Nebraska ethanol plant. This news release from ICM says the company’s patent-pending Selective Milling Technology (SMT) and patent-pending Fiber Separation Technology (FST) will allow E Energy Adams to increase throughput, decrease cost per gallon, and create the ability to produce high-value streams from their traditional DGS, all while increasing ethanol yield and increasing distiller’s corn oil recovery.

David VanderGriend, CEO for ICM, Inc., said, “ICM is pleased to partner with E Energy Adams as they fully adopt the next-generation “biorefinery” concept, allowing them to accomplish their mission of supporting the local economy while delivering profits to their investor owners, area grain producers, and livestock producers. E Energy is a leader in the ethanol industry, and we are proud to support them in their vision for continually improving operations and profitability.

Carl Sitzmann, CEO for E Energy Adams LLC, said, “We’ve been focused on the development of this project for the last two years, and we are pleased to be partnering with ICM. Their 20 years of experience in the ethanol industry, world-class research and development, and long-term vision of the future are perfect complements to our strategic vision involving competitiveness and new technologies. This project will not only give us the low-cost, energy-efficient base that we need to be an efficient producer, but also provide a platform for future development of cellulosic ethanol and differentiated co-products.”

ICM’s SMT™ is the industry leader in ‘fine grind’ technology, with 20 current or pending installations, representing over 1.4 billion gallons of annual ethanol production. FST is the next step in ICM’s EPA-approved pathway to cellulosic ethanol. It separates the corn kernel fiber for use in generating products with higher margin opportunities, or further processing it (using pre-treatment provided as a separate option by ICM) to produce cellulosic ethanol in an existing plant.

Calgren Ethanol Biodigester Off and Digesting

The Calgren Ethanol Biodigester is off and digesting waste from dairy farms into ethanol. The ethanol will be used by consumers in California’s Central Valley. The Two-Stage Mixed Plug Flow Digester was designed by DVO, Inc. and built by Regenis. The partners said it is the first California digester to use agricultural waste to create renewable natural gas to power another renewable energy facility, creating a step forward in a virtuous, zero waste lifecycle.

gI_59645_Pixley facility photoThe process begins with local dairy, Four J Farms, sending their cow waste to the Calgren digester, which captures methane and burns it as clean biogas. While Calgren will be utilizing the renewable gas to power its facility, the digester will also greatly reduce bacteria and pathogens so dairy farmers can reuse the liquids (water) safely on their crops.

“I am proud of the contribution that Calgren can make to this incredibly green, low-carbon intensity project,” said Lyle Schlyer, president of Calgren Renewable Fuels. “Digesters are often talked about, but actually building one and getting it into operation doesn’t happen all that often. This is a marriage of industrial and dairy interests.”

The California Energy Commission (CEC) invested $4.6 million in the project. In January 2015, CEC issued rules that could increase the number of digester projects around the state. Today California imports over 90 percent of its natural gas and in 2013 the state constructed nearly half of all the new natural gas-fired power plants built in the U.S. The need to import the energy is fueling the state’s commitment to supporting locally produced alternative forms of power.

“The San Joaquin Valley is challenged with some of country’s worst air pollution,” noted Janea A. Scott, Commissioner at the CEC. “The Pixley Biogas anaerobic digester is the first anaerobic digester on a California farm permitted to use all feedstocks, including municipal green waste and food processing waste. This type of innovative technology helps California meet its clean air, petroleum reduction, and climate goals.”

Murphy USA Expands Sale of E15

Murphy USA has expanded its support of E15 with stations opening in the suburbs of Chicago and Houston in 2015. E15 is a blend of gasoline and 15 percent ethanol and is approved by the EPA for use in 2001 and newer passenger vehicles and all flexible fuel vehicles. Nearly 80 percent of vehicles on U.S. roads are approved to use E15.

“We are excited to offer E15 in addition to our existing product offerings. Murphy USA will continue to pursue opportunities to offer the fuel our customers desire,” said a spokesperson for Murphy USA. E15, a blend of logo-murphy-usagasoline and 15 percent ethanol, is EPA-approved to be used by 2001 and newer passenger vehicles and all flexible fuel vehicles. Those vehicles account for 85 percent of fuel use in the United States.

Growth Energy welcomed the announcement. “Growth Energy applauds Murphy USA’s ongoing commitment to bring higher blends of homegrown renewable fuels to the American motorist,” said Tom Buis, CEO of Growth Energy. “Their dedication to providing the consumer with the best, most cost-effective product is commendable. Furthermore, we are thrilled to see Murphy USA’s success and decision to expand into new markets. Higher blends such as E15 are helping reduce our dependence on foreign oil, improve our environment through reduced emissions and support our domestic economy by creating jobs that cannot be outsourced.”

Buis said that retailers who offer E15 and other mid-level and higher blends of ethanol at competitive prices see increased sales and noted that consumers who use the fuel see better performance.

Midwest Governors Pen NY Times Op-Ed

Missouri Governor Jay Nixon

Missouri Governor Jay Nixon

Missouri Governor Jay Nixon and Iowa Governor Terry Branstad have an op-ed piece in the New York Times today rebutting a recent controversial, oil industry-funded report from the World Resources Institute about renewable fuels and the Renewable Fuel Standard.

Iowa Governor Terry Branstad

Iowa Governor Terry Branstad

“The World Resources Institute’s report suggests that the world’s agricultural system can’t possibly meet future demands for food and bioenergy in a sustainable way,” the governors write. “We disagree, based on data and recent real-world experience. As governors of two states at the forefront of the nation’s bioeconomy, we have witnessed firsthand the sustainable development of robust and dynamic bioenergy industries.”

We recognize the need for future technological advancements and are optimistic that recent high-tech innovations in precision agriculture will continue to meet the future food and energy demands of a growing world population. Our agricultural system can — and will — continue to meet those demands in a way that is environmentally sustainable, socially responsible and economically efficient.

Read the whole op-ed here.

EIA: Ethanol, Biodiesel, Renewables to Grow in 2015

The latest government numbers show the amount of ethanol and biodiesel, as well as energy produced from wind and solar will increase in 2015. The latest Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA) shows growth for the biofuels, while total renewables used for electricity and heat generation will grow by 3.8 percent this year.
EIA11feb2015
Ethanol production averaged 933,000 bbl/d in 2014, and EIA expects it to average 938,000 bbl/d in 2015 and 936,000 bbl/d in 2016. Biodiesel production averaged an estimated 80,000 bbl/d in 2014 and is forecast to average 84,000 bbl/d in both 2015 and 2016.

In 2013, the electricity generation shares were 6.6% and 6.2% from hydropower and nonhydropower renewables, respectively. Wind is the largest source of nonhydropower renewable generation, and it is projected to contribute 5.2% of total electricity generation in 2016. Wind capacity, which grew by 7.7% in 2014, is forecast to increase by 16.1% in 2015 and by another 6.5% in 2016. Because wind is starting from a much larger base than solar, even though the growth rate is lower, the absolute amount of the increase in capacity is more than twice that of solar: 15 GW of wind versus 6 GW of utility-scale solar between 2014 and 2016.

EIA expects continued growth in utility-scale solar power generation, which is projected to average almost 80 gigawatthours (GWh) per day in 2016. Despite this growth, solar power averages only 0.7% of total U.S. electricity generation in 2016.