Domestic Fuel

Attendees of the recent Fuel Ethanol Workshop and Expo in Denver, Colorado heard something they most likely already knew: the past year was a rough one for the ethanol industry.

While some folks such as Mike Bryan, CEO of BBI International point out that much of the green fuel’s woes were a concerted effort by those outside of the industry to spread misinformation, Bryan and Bob Dinneen, President and CEO of the Renewable Fuels Association insisted it’s time for ethanol to take back the message and spread the good news… like the fact that the industry has created 500,000 jobs and pumps $66 billion into the American economy.

Others focused on how new, alternative feedstocks, in particular, cellulosic, and advances in corn technology will make it possible to have the food, feed and fuel this country needs in the years to come.

It was a fascinating discussion, and we bring you a bit of the conversations from FEW in this latest edition of the Domestic Fuel cast. Listen to folks like Bryan; Dinneen; Dave Vander Griend, CEO of ICM Incorporated; Jeff Broin, CEO of ethanol producer POET; David Hiller, Executive Director of the Colorado Renewable Energy Collaboratory; and Larry Johnson from the North American Business Development division of biomass ethanol producer Inbicon here:

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For those of you not familiar with an FDA, Food Additive Petition (FAP), the folks at Phibro Chem’s Ethanol Performance Group can help you understand what it means to ethanol producers. They market the antimicrobial product, Lactrol.

We normally think of the EPA when it comes to governmental regulations in this industry but FDA is getting more involved. That’s why a company like Phibro, with years of experience dealing with the agency because of the animal health side of their business is probably a little ahead of the curve on this.

I spoke with Richard Coulter, VP, Scientific & Regulatory Affairs and Paul Duquette, Director, Global Regulatory Affairs during the Fuel Ethanol Workshop about this issue. You can see their whole team that attended the conference in the picture.

Richard said they were attending to “talk to producers to inform them of what we’re doing in the regulatory process.” He wants them to know they’re staying on top of it. He says that late in 2008 the FDA decided to join with the EPA and USDA in regulating biofuels due primarily to distillers grains being fed to animals. He says that it’s important for producers to work with suppliers that know how to deal with the total regulatory process. It sounds like Phibro knows how when it comes to the FDA.

Paul says that when it comes to the Food Additive Petition there’s a learning curve going on between the industry and FDA. He says FDA has made it clear that everything that goes into the production of ethanol must be AAFCO approved, GRAS approved, have a regulatory or enforcement discretion letter and then the FAP. Both Richard and Paul say the industry is facing more regulation in the future.

2009 Fuel Ethanol Workshop Photo Album

You can listen to my interview with Richard and paul below:

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The 25th annual Fuel Ethanol Workshop was the first for Growth Energy, the ethanol industry organization formed late last year, and CEO Tom Buis was impressed with the turnout at the conference despite current economic conditions.

“I think everyone is really interested in moving forward,” Buis said. “Obviously we are going through some rough spots, economically, but I think people are optimistic and at the end of the day we will all win.”

Buis has only been on the job with Growth Energy for three months, but like the ethanol industry, his roots are in agriculture, operating a grain and livestock farm with his brothers in Indiana before moving to Washington DC and spending the past ten years with the National Farmers Union. His agricultural background allowed him to see the importance of the ethanol industry to the nation as a whole. “What we do in this industry is right,” he says. “Whether it’s creating jobs in rural America, or providing a profitable market for farmers, or revitalizing our rural communities, protecting our national security or reducing our dependence on foreign oil.”

Buis is very excited about the announcement made at the FEW that the National Ethanol Vehicle Coalition (NEVC) has united with Growth Energy to become Growth Energy Market Development. “They’ve spent well over a decade working on the marketing components of ethanol, the flex-fuel vehicles and E85 pumps,” he said. “We have to deal with the legislative and policy front, but we have to deal with the marketing component as well.”

Listen to Chuck Zimmerman’s interview with Tom Buis from FEW here:

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At this week’s Fuel Ethanol Workshop we had a very large panel discussion titled, “Research, Technology and the Future of Ethanol Production.” This was a pretty serious group of industry leaders and thinkers that was introduced by Tom Bryan, BBI International. Included were:

* Moderator: Per Falholt, Executive Vice President-Head of R&D, Novozymes
* Dave Vander Griend, CEO, ICM Inc.
* Rob Elliott, Processor Preferred Marketing Manager, Monsanto Company
* Neal Briggi, Global Head of Enzymes, Syngenta Biotechnology Inc.
* Wes Bolsen, Chief Marketing Officer & Government Affairs, Coskata Inc.
* Larry Johnson, North American Business Development, Inbicon
* Vonnie Estes, Vice President-Business Development, DuPont Danisco Cellulosic Ethanol
* Jeff Broin, CEO, Poet LLC

I recorded the presentation and thought you might be interested to hear their thoughts in answer to a couple of questions. I’ve included their response to a few of the first ones, including:

How has your company changed within the last 18 months?
What about your company could you have not predicted a year and a half ago?
How will the ethanol industry look a decade from now?
How will it be transformed by both crop and production technologies?

2009 Fuel Ethanol Workshop Photo Album

You can listen to this segment of the panel presentation below:

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I’ll be leaving the Fuel Ethanol Workshop soon but have several interviews to post over the next several days. Today’s a travel day back home after a week on the road that included working with biodiesel in Nashville and ethanol in Denver!

In the trade show last night I ran into Brian Jennings and Ron Lamberty, American Coalition for Ethanol. Brian says that although there’s a realization that things in the industry have changed significantly since the last FEW, he senses some optimism due to what’s happening with blending economics that are making their way back into the marketplace. I also got a complete update on how things are going for the organization. He wants everyone to know that their conference will be taking place August 11-13 in Milwaukee where they’ll be tackling a lot of the issues facing the industry. In my interview with them you can hear Ron talk about the work he’s been doing on blender pumps.

2009 Fuel Ethanol Workshop Photo Album

You can listen to my interview with Brian and Ron below:

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POET CEO, Jeff Broin, announced a new division for the company this morning at the Fuel Ethanol Workshop. POET Biomass will be “a division of POET devoted to managing harvest and transportation logistics for corn cobs - POET’s cellulosic feedstock - as well as waste wood and other feedstocks to be used for cellulosic ethanol and alternative energy projects at their production facilities.”

In addition to the new division, Broin, says the company has installed an anaerobic digester at POET’s pilot cellulosic plant in Scotland, SD to create a “a self-sustaining energy cycle for producing cellulosic ethanol.”

Corn cobs at Project LIBERTY will not only be used to produce ethanol; the liquid waste will go to an anaerobic digester to power the cellulosic plant and offset natural gas usage at the attached grain ethanol plant as well. That’s renewable energy created at the plant, powering the plant and powering the adjacent facility.

2009 Fuel Ethanol Workshop Photo Album

You can listen to the full press conference below:

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He preached a powerful sermon this morning. He’s the Reverend of Renewable Fuels. He’s Bob Dinneen, CEO, RFA. Bob was on our program at the opening general session of the Fuel Ethanol Workshop. This is the 25th FEW and Bob has attended 21 of them now!

As always, Bob provided a very positive outlook by starting out looking at the industry’s accomplishments in the last year.

“Look at last year – in the face of a deepening economic downturn, negative 3% growth and rising unemployment, the U.S. ethanol industry grew by 34%, 0pening 31 new plants and adding an additional 240,000 new jobs!

As our industry grows, we are transforming our nation’s motor fuel market, and we are transforming the rural landscape of America.”

Bob touches on carbon, critics, food vs. fuel, land use, market expansion and cellulosic. He concluded by saying:

“We may have troubles, but we in the ethanol industry have a great story to tell, a compelling case to make, new opportunities to seize, and new markets to win over.

Thank you all for listening, and for the honor of being one of you.

2009 Fuel Ethanol Workshop Photo Album

You can listen to Bob’s speech below:

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This morning, Kathy Bryan, BBI International, was presented with the FEW High Octane award for a lifetime of commitment to the industry. Unfortunately, due to health reasons, she could not be with us. It was an emotional scene as her son Tom accepted the award for her.

We got to see a short slide show of photos of Kathy from throughout her career of promoting ethanol. It was very moving. She recorded an audio statement for us to hear which I have recorded and you can listen to below.

2009 Fuel Ethanol Workshop Photo Album

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Gen. Wesley Clark, Growth Energy, provided the keynote speech this morning at the Fuel Ethanol Workshop. He gave a very “rouse the troops” speech which shows his ability to motivate our military troops when he was in active duty.

I would characterize the theme of his remarks as targeting the importance of ethanol for our national security. He also hammers home the idea that the whole issue of food vs. fuel is nonsense and that imported foreign oil is distorting our foreign policy.

2009 Fuel Ethanol Workshop Photo Album

You can listen to Gen. Clark’s opening remarks below.

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Mike Bryan, CEO, BBI International, opened the general session this morning.

He was very focused on the image of ethanol in his remarks. He says that the problems in the industry aren’t really the kinds of things that a lot of people are attributing them to but that the image of ethanol is what has hurt the industry. He issued a call to action for more people in the industry to proactively work on improving ethanol’s image, especially on the local level.

I’ve started a photo album from the conference so please feel free to check it often: 2009 Fuel Ethanol Workshop Photo Album

You can listen to Mike’s opening remarks below. I’ll also have other speaker remarks posted during the morning so keep checking in!

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