Category Archives: Ethanol

Free Ethanol Seminars Coming in Nebraska

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NEB 2013 Ethanol Safety SeminarsThe next two Ethanol Safety Seminars will take place in Grand Island and Columbus, Nebraska on June 12, 2013 and June 13, 2013. The safety seminars are sponsored by the Nebraska Central Railroad and the Renewable Fuels Association (RFA). The sessions are FREE to attend and open to the public.

Attendees will receive in-depth information on proper training techniques that first responders and hazmat personnel need to effectively respond to an ethanol-related emergency. Certificates of Completion will be awarded at the completion of each safety seminar.

There will be two sessions each day: 9:00am-2:00pm and 5:30pm-10:00pm. Lunch and dinner will be provided. To register, please visit www.rfa.traincaster.com.

EPA’s 411 on RINs & RVOs

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A recent “Today in Energy” brief published by the U.S. Energy and Information Administration takes a look at how the Environmental Protection Agency (EPA) monitors Renewable Identification Numbers (RIN) and Renewable Volume EPA rincycleObligations (RVO) as part of the Renewable Fuel Standard (RFS). RVOs are the targets for each refiner or importer of petroleum-based gasoline or diesel fuel, while RINS allow for flexibility in how each of them may choose to comply.

The 2013 RFS target is 16.55 billion gallons of renewable fuels including targets for cellulosic biofuels, biodiesel, advanced biofuels in addition to an overall target. Volumes for the four RFS targets are assigned to obligated parties, refiners and importers, by way of RVO percentages that are calculated by dividing each RFS target by the total estimated supply of nonrenewable gasoline and diesel fuel in each year.  For 2013, the four proposed RVO targets are:

  • cellulosic biofuels – 0.008 percent;
  • ethanol equivalent for biomass-based diesel – 1.12 percent;
  • advanced biofuels – 1.6 percent; and
  • total renewable fuels – 9.63 percent.

Obligated parties must cover their RVOs by surrendering RINS within 60 days after the end of each calendar year.

RINS are used by the EPA as both a way to keep records and build flexibility into the RFS for meeting RFS volumes. Each gallon of fuel is assigned a unique 38 character code and is valid for the year in which it was generated; however, up to 20 percent of a year’s mandate can be met with RINs generated in the previous year.

In addition to monitoring compliance, RINs also add value to each gallon of biofuel to which they are attached. The value of RINs provides an economic incentive to use renewable fuels. If RIN prices increase, blenders are encouraged to blend more renewable fuels. However, when the biofuel is more costly than nonrenewable fuels but is still needed to meet RFS standards, the RIN value should increase to a point at which firms will increase biofuel blending.

And there you have it: EPA’s 411 on RINs and RVOs. Click here for more information.

Growth Energy Promotes Frohlich

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Growth Energy has promoted Michael Frolich to Director of Communications. He joined the ethanol organization in May 2012 as the press secretary. In his new role, he will continue to serve as the primary spokesperson and media contact.

Michael Frolich Growth EnergySince its inception, Growth Energy has advocated for increasing the use of ethanol in the American fuel system by promoting ethanol’s benefits among the general public. “The appointment of Michael to Director of Communications will help strengthen and focus the strategic vision of our efforts to communicate the numerous benefits of renewable fuels to the economy, the environment and to consumers,” said Growth Energy CEO Tom Buis.

Prior to joining Growth Energy, Frohlich served as Director of Media Relations with the National Association of Manufacturers as well as Director of Federal Communications at the National Biodiesel Board. He is a native of Rochester, N.Y. and earned his bachelor’s degree from Gettysburg College.

Iowa Retailer Says Big Oil Disrupting E15 Sales

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An Iowa congressman and a fuel retailer in his state are claiming that the oil companies’ fuel distribution monopoly is forcing the discontinuation of 15% ethanol blended fuel (E15) sales during the summer.

braleyRepresentative Bruce Braley (D-IA) joined Linn Coop Oil Company service manager Jim Becthold and Iowa Renewable Fuels Association Executive Director Monte Shaw for a press conference at Bechtold’s station Monday morning.

“I’ve said on multiple occasions that there is a war on renewables being funded by Big Oil,” said Braley. “Consumers who want a higher grade ethanol blend (E15) are being denied that choice” due to oil companies refusing to ship the blendstock for E15 that is necessary during the summer months.

Braley, who is a member of the House Energy and Commerce Committee which has jurisdiction over the federal Renewable Fuels Standard (RFS), says that is exactly why Congress passed the RFS in the first place, “to make sure that we were providing a cleaner burning fuel that would help reduce our dependence on foreign oil and provide consumers greater choices at a lower cost.”

Bechtold, who faced the same situation last summer as he was preparing to offer E15, said he actually had to bag his E15 pumps over the weekend. “We’ll be able to sell it again on September 15, but through the summer months with the high gas prices, we can’t offer that fuel,” he said. “Really can’t see why we can’t do that. We can sell E10, E85, E30, but we can’t sell E15.”

The E15 blend was approved by the EPA for use in 2001 and newer vehicles, while E30 and E85 can only be used in flex fuel vehicles. Earlier this year a number of Iowa’s E15 retailers sent a letter to the oil refiners supplying Iowa asking them to provide the proper summertime gasoline blendstock for E15. The letter noted that such fuels are already transported by the pipeline servicing Iowa. Yet, as of the June 1st summertime deadline, no oil refiner allowed Iowa retailers access to the necessary fuel. That refusal forced Linn Coop Oil Company and Iowa’s other E15 retailers to stop selling E15 as a registered fuel to 2001 and newer vehicles.

“We’re not asking for something that doesn’t exist,” said Monte Shaw. “The gasoline blendstock we need to make E15 in the summer is available, it flows through the very pipeline system that services Iowa, but they will not let us take it out of the pipeline here.”

Listen to press conference here: Iowa RFA E15 press conference

Green Plains to Buy Nebraska Ethanol Plant

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Green Plains Renewable Energy has signed a purchase agreement to acquire the membership interests of Choice Ethanol Holdings, owners of the former NEDAK Ethanol ethanol plant in Atkinson, Neb. The purchase also includes an ethanol storage and loading facility located near the plant. The dry-mill ethanol plant will add approximately 50 million gallons of operating capacity to Green Plains’ current annual production capacity of 740 million gallons.

“The acquisition of the plant in Atkinson expands our ethanol production platform and aligns with our ongoing strategy of growing our business and enhancing long-term shareholder value,” said Todd Becker, Green Plains’ President and Chief Executive Officer. “The plant meets our disciplined acquisition criteria and we have a deep understanding of this technology, size and geographic area. We believe we can rapidly improve the overall performance of this plant.”

The ethanol plant utilizes Delta-T processing technology. The ethanol storage facility holds approximately 24,000 barrels of ethanol and is located on the BNSF rail line. Green Plains plans to staff and re-start the plant within the next four weeks. Once the transaction closes, the Company plans to begin installing corn oil extraction technology, which should be completed in the fourth quarter of 2013. Completion of this transaction is subject to standard and customary closing conditions.

Ethanol Supporters Disappointed in Florida Bill

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A bill repealing Florida’s Renewable Fuels Standard (RFS) was signed into law Friday by Gov. Rick Scott to the disappointment of many ethanol and other biofuel supporters.

deb-mayfieldState Representative Debbie Mayfield of Vero Beach, led the opposition to the repeal of the requirement which was passed in 2008 when her late husband Stan Mayfield chairman of the Florida House energy committee. “We said that we were going to be a renewable energy state,” said Mayfield.

The Specialty Equipment Market Association (SEMA) supported the repeal, but long-time member and strong ethanol supporter Bobby Likis says they did not speak for him. “The automotive industry, businesses and consumers SEMA is purported to serve will regret this action, which is not based on facts but rather on misinformation, myths and interests spear-headed by a few,” said the automotive technician and talk show host, adding that those supporting the repeal ignored the interests “of the consumer, advancing technology, independence from foreign oil and American business development and financial success.”

“As this country struggles to comeback from recent economic hardships, it is sad to watch a state legislate away good paying jobs in the renewable energy sector and the abundant economic opportunities that come along with them,” said Bob Dinneen of the Renewable Fuels Association and Tom Buis with Growth Energy in a joint statement, noting that the federal Renewable Fuels Standard (RFS) supersedes any state law. “This toothless legislation might win favor with Big Oil supporters, but it has closed the door on job creation by the biofuels industry and sent investors packing for more visionary states. This is most definitely a lost opportunity for people of Florida.”

Siouxland Energy Steps Up to Step Down Gas Prices

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e85-ethanolAs gas prices continue to rise, the ethanol industry is taking a bold step to ensure consumers save at the pump. While E10 and E15 are saving drivings money with each gallon, now flex fuel drivers who use E85 can save even more money. Siouxland Energy and Livestock Cooperative (SELC), a 60 million gallon per year ethanol plant in Sioux Center, Iowa, is now offering E85, a fuel blend of 85 percent ethanol and 15 percent gasoline, directly to retailers and is passing in the RIN value generated by blending ethanol directly to them. The hope, the retailer then passes their saving on to consumers.

According to OPIS, recent prices for E85 at Iowa terminals were about $2.69 per gallon, while SELC listed the price for their E85 at only $2.17 per gallon. Last week, Absolute Energy of St. Ansgar, Iowa announced the implementation of the same program.

“Here at Siouxland Energy, we’re passing on the RIN savings to the consumer, and it’s making for some very attractive E85 prices,” said SELC Commodity Manager Tom Miller. “I think ethanol plants are growing tired of watching a middleman pocket the RIN value to the detriment of consumers. Our plant wants consumers to understand the real value of homegrown ethanol, so we’ve cut out the middleman and we’re selling E85 directly to retailers at a much greater discount.”

A RIN, or renewable identification number, is a free credit earned by the blender of ethanol that can then be sold on the open market to oil refiners, which use the credits to demonstrate compliance with the federal Renewable Fuel Standard (RFS).

Filling Up? Ethanol Will Save You Money

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This Memorial Day, the Renewable Fuels Association (RFA) is reminding drivers that ethanol can help save money at the pump. As national gas prices continue to rise, the national average today is $3.66 according to GasBuddy.com. For drivers living on the coasts, it’s not uncommon to see high gas prices. Yet the oddity this year is that the highest prices in the nation last week were in Minnesota. According to various media reports, the statewide average is $4.26 per gallon.

“It is getting painful yet again to stand at the pump and watch the dollars fly by,” said Bob Dinneen, president and CEO of RFA. Thankfully, ethanol exists to help Gas Buddy Map May 27 2013lower prices, stretch the gasoline supply, and provide both engine and environmental benefits. On a larger scale, the ethanol industry is a high octane economic engine that is supporting more than 365,000 jobs across America, revitalizing challenged rural communities, and reducing the American dollars sent overseas to buy petroleum from often hostile dictators in oil-rich countries.”

According to 2012 updated research conducted by economics professors at the University of Wisconsin and Iowa State University for the Center for Agricultural and Rural Development (CARD), domestically-produced ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011. That is an additional 20-cent savings over the $0.89 these same economists recorded in 2010.

It is expected that drivers in Iowa may also soon be hit with increased costs. Once again, ethanol, this time in the form of E85 (85 percent ethanol, 15 percent gasoline) that is widely available in the Corn Belt, is delivering significant savings to owners of flex-fuel vehicles.

Dinneen added, “I suspect owners of flex-fuel vehicles will enjoy their summer driving vacations a bit more than other drivers. The savings that flex-fuel drivers will enjoy is significant.”

Needed: Summer Gas Loan

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It’s that time of year when families hop in the car and begin summer vacations. It’s also the time of year when gas prices jump up and the cash in wallets jumps out. When I filled up my tank yesterday, I thought I might have to go the bank and take out a “summer gas loan” to help pay for high gas prices. I’m can’t be the only one in this boat as the high gas prices are dominating local TV news casts these days.

Gas Bill May 23 2013Growth Energy’s CEO Tom Buis notes that Big Oil’s predictability is absurd. Every year the same thing happens, as more people hit the road, prices climb. It is just as certain that the sun will set in the evening, as oil companies will use any excuse to gouge consumers and blame some outside factor,” said Tom Buis, CEO of Growth Energy. “After roughly 40 days of price increases in February, switching seasonal blends were blamed. Now, it is refinery planned maintenance and tight regional supplies. Their unending excuses are as long as the list of government subsidies they have received over the last century.”

Buis says this is just another example of many, of why renewable biofuels are necessary. They provide consumer savings and a choice at the pump. They reduce dangerous dependence on foreign oil. “While Big Oil touts all the new wells, the fracking and the so-called abundant supply right here at home, prices have not gone down. Why do prices remain so high with a so-called increase in supply? Oil companies will continue to rake in record profits on the backs of their customers as they continue their monopoly on the liquid fuels market by blocking competition and doling out the same baseless excuses time and again,” Buis continues.

“Enough is enough,” says Buis. He calls for an end to the absurd addiction to foreign oil and encourages drivers to use homegrown American ethanol. He also stresses the need to stop paying nearly a billion dollars a day for fossil fuels and foreign oil and spend the money at home.

“The latest reports that motorists will pay record prices this Memorial Day weekend at the pump is no surprise, but just one of many reasons it is time we break the addiction to oil and start using higher blends of ethanol.”

Ethanol Improving While Oil Gets Worse

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The House and Energy Commerce Committee has released its third white paper on the Renewable Fuel Standard, “Greenhouse Gas Emissions and Environmental Impacts.” Executive Vice President of the American Coalition for Ethanol (ACE), Brian Jennings, responded with written comments that included but were not limited to feedback on the RFS role on the environment, agricultural sustainability and tailpipe emissions.

“…petroleum represents the most harmful source of transportation fuel while renewable fuels such as ethanol represent the safest. Recent crude oil spills have killed fish, animals, and plant life. Ethanol, on the other hand, is derived from plant life and ethanol coproducts are fed to fish and livestock. At the same timeCorn_field ethanol’s lifecycle greenhouse gas (GHG) emissions and production efficiencies are dramatically improving, extracting and processing crude oil into gasoline is becoming more expensive, inefficient, and destructive to the environment,” wrote Jennings. (Read ACE’s full comments here.)

The Renewable Fuels Association (RFA) responded to seven questions proposed in the white paper by proposing 10 questions of their own.(Read RFA’s full comments here.)

RFA President and CEO Bob Dinneen said, “When assessing the environmental impacts of renewable fuels, it is absolutely imperative to make appropriate comparisons to the impacts associated with the use of petroleum fuels. In other words, it is inappropriate to examine the environmental effects of the RFS without simultaneously examining the effects of not having the RFS. It is also important to compare new renewable fuels entering the market to the actual sources of marginal petroleum they are delaying and displacing.”

Iowa Gets Aggressive on Blend Wall

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E85 pump in IowaThe Iowa Legislature has passed H.F. 640 that supports fuel choice for Iowa’s fuel retailers and consumers. The legislation protects retailers from Big Oil efforts to restrict competition by guaranteeing them the right to offer ethanol and biodiesel blends of their choice including E15, E85 and B20.

“This legislation represents a solid step forward for higher ethanol blends, consumer choice, and the federal Renewable Fuel Standard (RFS),” said Iowa Renewable Fuel Association (IRFA) President Rick Schwarck, CEO of Absolute Energy. “I find it ironic that Big Oil consistently claims that retailers don’t want to sell higher ethanol blends like E15, yet they use every trick in the book to prevent retailers from offering E15.  In fact, the American Petroleum Institute (API) fought tooth and nail to try to keep these retailer protections out of the bill.  This bill tears down one part of Big Oil’s bogus blend wall in Iowa.”

The legislation includes a section that amounts to a retailer ‘Bill of Rights,’ preventing oil refiners’ supply agreements from directly or indirectly limiting the ability of local retailers to offer the ethanol and biodiesel blends they choose. The provision was based on a law enacted in South Dakota in 2011 and addresses specific, anti-competition provisions from actual refiner supply agreements.  As a result, new supply agreements will not be allowed to:

  • Restrict fuels from other suppliers;
  • Restrict installing a blender pump;
  • Restrict using current equipment from offering higher blends, like E15, E85, and B20;
  • Restrict ethanol or biodiesel blends from being advertised;
  • Restrict the locations where a retailer may offer the higher blends (like under a canopy); and
  • Restrict payment for higher blends to cash only (no credit cards).

“One supplier should not be allowed to dictate to local retailers what they can and cannot do with products from other suppliers,” continued Schwarck.  “More freedom for retailers to offer the fuels they choose often means more ethanol and biodiesel blends, which benefits consumers by increasing competition at the pump.  And it also means more RINs will be generated for use in complying with the federal RFS.”

Absolute Energy Offers Drivers Relief at the Pump

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As Memorial Day approaches marking the beginning of summer driving season, gas prices have spiked. Last week, gas prices went up .19 cents per gallon in Minnesota Gas PricesIowa with ending average prices at $3.70 per gallon. Spikes were even higher in Minnesota/St. Paul with prices averaging $4.21 across the state while the national average is around $3.60 per gallon.

In response Absolute Energy, an ethanol plant located on the Iowa-Minnesota border, is offering Minnesota drivers some relief at the pump in the form of ethanol. Absolute Energy is offering E85, (85 percent ethanol / 15 percent gasoline), in bulk to gas marketers impacted by the recent shut-down of three oil refineries for mostly seasonal reasons. According to E85Prices.com this week, the published average statewide E85 price is averaging $3.08 and has been reported to be as low as $2.39 per gallon in Eagan, Minn.

Rick Schwarck, CEO of Absolute Energy, said, “With gas prices spiking and ethanol plentiful in the Midwest, this will be the summer of the flex-fuel vehicle. Drivers of FFVs should be able to take advantage of serious savings at the pump by using E85. Not only will they be saving money, they will be choosing a fuel alternative that creates jobs and opportunities throughout Minnesota, Iowa and other states. E85 will drive us toward a cleaner, brighter summer sky thanks to lower greenhouse gas emissions while also strengthening our national security and economy.”

Ag Processing Shuts Its Doors

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Screen Shot 2013-05-22 at 8.54.31 AMAg Processing Inc a cooperative (AGP) announced it has permanently shut down operations of its corn processing plant at Hastings, Nebraska. The plant had been on an extended shutdown since February 1, 2013 amid challenging economic conditions. At that time, the company said it would continue to evaluate the future of the plant. This week the decision to permanently close the corn processing operations was made public.

The cooperative also operates a soybean processing plant, a vegetable oil refinery and an AminoPlus production facility at its industrial complex in Hastings. Company officials reiterated that those operations will not be impacted by the closing of the ethanol plant operations.

AGP is the largest farmer‐owned soybean processor in the world, is owned by 178 local and regional cooperatives representing over 250,000 farmers from 15 states throughout the United States. Corporate headquarters are located Omaha,Nebraska.

RFA Honored for Emergency Readiness Training

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rfa-moore-awardThe Renewable Fuels Association (RFA) was honored today with the “2012 TRANSCAER® National Achievement Award,” at the Association of American Railroads/Bureau of Explosives HazMat Seminar in Addison, Texas.

RFA received the award for its commitment to the goals of TRANSCAER® and for its role in educating communities on how to handle chemical transportation emergencies. TRANSCAER® (Transportation Community Awareness and Emergency Response) is a voluntary outreach initiative that works to keep communities safe and prepares them for possible hazardous transportation emergencies.

“I have worked with TRANSCAER® for many years and am honored to receive this award on behalf of the Renewable Fuels Association,” said RFA Vice President for Technical Services Kristy Moore who accepted the award on behalf of the organization. “I have been involved in planning safety seminars and know that the value of a coordinated response can be the difference between a fire and full out disaster.”

The RFA partners with railroad companies and local industry associates to hold safety seminars on how to handle ethanol related emergencies. The seminars examine everything from how to handle tank farm and bulk storage fire incidents to the transportation and transfer of ethanol blended fuels. The RFA began safety seminars in 2010 and continues to host sessions throughout the United States. To date, the RFA has hosted 69 safety seminars in 20 different states, including Oregon, Pennsylvania, Texas and Tennessee. Ten more seminars are planned this year and the RFA intends to continue this important program next year. The free seminars are open to everyone, including first responders, emergency planners and the general public.

EPA Proposes RFS Amendments

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The Environmental Protection Agency has announced proposed Renewable Fuel Standard (RFS2) amendments and clarifications, which include new pathway determinations for advanced biofuels such as isobutanol and ethanol from crop residues.

epaThe EPA proposal also includes “various changes to the E15 misfueling mitigation regulations (E15 MMR) which are minor technical corrections and amendments to sections dealing with labeling, E15 surveys, product transfer documents, and prohibited acts” as well as changes to the survey requirements associated with the ultra-low sulfur diesel (ULSD) program.

EPA is proposing to allow renewable diesel, renewable naphtha, and renewable electricity (used in electric vehicles) produced from landll biogas to generate cellulosic or advanced biofuel RINs. Renewable compressed natural gas (CNG)/liquified natural gas (LNG) produced from landfill biogas are also proposed to generate cellulosic RINs. EPA is also proposing to allow butanol that meets the 50% GHG emission reduction threshold to qualify as advanced biofuel. The rulemaking also proposes a clarication regarding the definition of crop residue to include corn kernel ber and proposes an approach to determining the volume of cellulosic renewable identication numbers (RINs) produced from various cellulosic feedstocks. Further, this proposal discusses and seeks comment on the potential to allow for commingling of compliant products at the retail facility level as long as the environmental perfor­mance of the commingled fuels would not be detrimental. The action also addresses “nameplate capacity” issues for certain production facilities that do not claim ex­emption from the 20% GHG reduction threshold. Several other amendments to the RFS program are included.

“This proposed rulemaking package is essentially a collection of ‘housekeeping amendments’ that will address several odds and ends that needed to be addressed in the regulatory text,” commented Renewable Fuels Association president and CEO Bob Dinneen. “We are pleased that among these proposed amendments is a provision clarifying that ethanol produced from the cellulosic portions of the corn kernel can qualify as cellulosic biofuel under the RFS2.”

“Companies continue to make investments, put steel in the ground, create jobs and develop technologies that reduce dependence on foreign oil and contribute to a cleaner environment,” said Brent Erickson, executive vice president of the Biotechnology Industry Organization’s (BIO) Industrial & Environmental Section. “They are preparing to make additional investments with assurance that U.S. policy is committed to energy security and production of biofuels.”

The proposal has been submitted to the Federal Register for public comment.