Iowa Ethanol, Biodiesel Makers Call for Tax Extenders

IowaRFAlogoEthanol and biodiesel producers in Iowa are joining in the growing chorus calling on Congress to extend some important tax credits. This news release from the Iowa Renewable Fuels Association (IRFA) says nine of the state’s advanced biofuel producers sent a letter to the entire Iowa Congressional Delegation encouraging the swift passage of a tax extenders package which includes provisions for biodiesel blending, cellulosic production, and accelerated depreciation, prior to final adjournment of the 113th Congress.

“Iowa’s entire congressional delegation has shown steadfast support for these important policies, and today we’re calling on them to take concrete steps to advance legislation extending these vital provisions that support energy security, American jobs, and a cleaner environment,” stated Western Iowa Energy Board Member Denny Mauser. “In the face of more than 100 years of preferential tax treatment for petroleum—a literal Century of Subsidies—these incentives keep advanced biofuel projects moving forward to the benefit of all Americans.”

The letter states, “It is absolutely critical to our industry that this Congress pass a tax extenders package, which includes provisions for biodiesel blending, cellulosic production and accelerated depreciation, prior to final adjournment.”

The letter goes on to point out the advantages the petroleum industry continues to enjoy in tax subsidies and says if Congress does nothing on the extenders package, the “U.S. will be left with a defacto petroleum mandate.”

Video Contest Looks to ‘Fuel the Future’ of Ethanol, Biodiesel

IRFA2015VideoContestIowa high school students will once again compete to see who can produce the best video to promote the future of biodiesel, ethanol and E15. The Iowa Renewable Fuels Association (IRFA) launched the 5th Annual “Fuel the Future” Video Contest for Iowa high school students with the top three video entries receiving prizes in the amounts of $1,000, $600 and $400 respectively; airing at the 2015 Iowa Renewable Fuel Summit on January 27; and being featured on IRFA’s YouTube® channel.

“The IRFA video contest is now open, and we’re excited to see the creative ways Iowa high school students promote ethanol and biodiesel this year,” stated IRFA Communications Director T.J. Page. “With attacks from ethanol and biodiesel opponents ramping up, we can’t wait to see how Iowa high school students set the record straight on renewable fuels through their highly entertaining and informative videos.”

The Fuel the Future contest is limited to students currently attending high school in Iowa (grades 9-12 in a public, private or home school). Video entries may not exceed two minutes in length and must be submitted to IRFA via DVD, flash drive, or secure web link. To be considered for the contest, all completed video entries must be received in the IRFA office by January 16, 2015. For more information, including the official entry form and contest rules, please visit www.iowarfa.org/FueltheFuture.php. For additional questions, please contact T.J. Page at (515) 252-6249 or tpage@IowaRFA.org.

To get some ideas, check out last year’s winner, produced by John Low of Marion and titled “E15: The Fuel of the Future,” here.

Iowa RFA Pleased with Election Results

branstad-ernstThe Iowa Renewable Fuels Association (IRFA) is pleased with the results of Tuesday’s election in the state and the strong support for renewable fuels among the winning candidates.

“It’s not surprising that ethanol and biodiesel enjoy broad, bipartisan support in Iowa,” stated IRFA PAC Treasurer Walt Wendland. “It’s also encouraging to see that renewable fuels will remain in good hands in Iowa. We look forward to working with all of the 2014 election winners for state and federal offices to continue to preserve and advance Iowa’s leadership in renewable fuels production, agriculture and environmental stewardship.”

In the races for federal office, Iowa elected Joni Ernst to the U.S. Senate, and David Young and Rod Blum to the U.S. House. Iowans also re-elected Governor Terry Branstad, and Reps. Steve King and Dave Loebsack. Each winning candidate reported strong support for renewable fuels and the federal Renewable Fuel Standard (RFS) in IRFA’s renewable fuels candidate survey.

Register Now for 9th IRFA Summit

2015 Iowa Renewable Fuels Summit crowdsRegistration is now open for the 9th annual Iowa Renewable Fuels Summit and Trade Show. The event will take place January 27, 2015 at The Meadows Conference Center located at Prairie Meadows in Altoona, Iowa and is free and open to the public. Click here for registration and sponsorship information.

With ongoing discussion over renewable fuels policy, the 2015 Iowa Renewable Fuels Summit will discuss state and national issues impacting the renewable fuels industry, including the future of the federal Renewable Fuel Standard (RFS), the impacts of the mid-term elections on U.S. energy policy, and emerging opportunities for cellulosic ethanol, E15, and biodiesel. Featured speakers will be announced leading up to the Summit.

“The Iowa Renewable Fuels Summit provides a great opportunity to listen to experts address state and national issues impacting the future of renewable fuels, as well as network with biofuels professionals and business leaders from throughout the Midwest,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “Taking into account the unclear impacts of mid-term elections and the uncertain future of the RFS, there’s a no shortage of interest in the 2015 Summit that will bring together industry leaders, decision makers and the general public to shape Iowa’s energy future.”

Murphy USA Promoting E15, E85 In Iowa

Murphy USA is partnering with Iowa Renewable Fuels Association (IRFA) and the Iowa Corn Growers Association to hold grand openings of E15 and E85 pumps across Iowa. The events will include fuel discounts, door prizes and free food with fuel purchase.

“Iowa motorists will now be able to benefit from increased access to cleaner-burning, lower-cost ethanol blends like registered E15 and E85 at many Murphy USA fueling sites across the state,” said IRFA Managing Director Lucy Norton. “To launch its renewed commitment to homegrown, economical fueling options in Iowa, Murphy USA is also stepping up to offer even greater savings on E15 for 2001 and newer vehicle owners and E85 for flex-fuel vehicle owners during its scheduled grand opening celebrations. Be sure to stop by a Murphy USA location near you to save some of your hard earned money while also improving air quality and supporting Iowa jobs.

During the ethanol fuel events, customers will be able to take advantage of E15 for $2.15 per gallon, E85 for $1.85 per gallon. The Murphy USA locations in Clinton, Davenport, Fort Dodge, Mason City and Sioux City will also offer biodiesel. A list of event dates is below:

Screen Shot 2014-09-15 at 10.56.03 AM

Norton added, “E15 is the lowest priced fuel available for most Iowans, and E85 is the lowest priced fuel for flex-fuel vehicle owners. Now motorists in seven large Iowa cities will have ready access to fuels that not only burn cleaner, but are also the least expensive fuels on the market for the vast majority of drivers.”

Iowa E85 Sales Strong

IowaRFAlogoIowa motorists purchased over 2.9 million gallons of E85 in the second quarter of 2014, the second most sales in any second quarter on record, and a more than 200,000 gallon increase over the first quarter of 2014, according to the Iowa Renewable Fuels Association (IRFA).

“Two strong quarters of E85 sales are now in the books, and Iowa is poised for another big year in E85 sales,” said IRFA Executive Director Monte Shaw. “As White House officials review the final RFS volume levels, they should take note that when given the choice, motorists firmly support lower-cost, higher-level ethanol blends.”

E85, a fuel blend containing between 70 and 85 percent ethanol, is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV).

Iowa Lawmakers Recognized for Renewable Fuel Support

IowaRFA logoSixteen state lawmakers in Iowa are being recognized for their support of renewable fuels, such as biodiesel and ethanol. The Iowa Renewable Fuels Association (IRFA) PAC announced the 16 recipients of its “Champion of Renewable Fuels” awards for state legislators, recognizing their voting records and leadership in support of the green fuels.

“The IRFA PAC is proud to support these ‘Champions of Renewable Fuels’ who’ve consistently supported and led on important renewable fuels issues,” stated IRFA PAC Treasurer Walt Wendland, President and CEO of Homeland Energy Solutions. “Iowa is number one in the nation when it comes to renewable fuels production, and that doesn’t happen without great leadership and forward-thinking policies from our elected officials. These award winners have demonstrated outstanding commitment to the renewable fuels industry and have worked tirelessly to strengthen Iowa’s economy by improving opportunities for ethanol and biodiesel.”

Recipients of the 2014 Champion of Renewable Fuels awards are:

Iowa Senators
Sen. Bill Anderson SD 3
Sen. Daryl Beall SD 5
Sen. Rick Bertrand SD 7
Sen. Bill Dix SD 25
Sen. Amanda Ragan SD 27
Sen. Rob Hogg SD 33
Sen. Joe Bolkcom SD 43

Iowa Representatives
Rep. Helen Miller HD 9
Rep. Jack Drake HD 21
Rep. Dan Kelley HD 29
Rep. Josh Byrnes HD 51
Rep. Linda Upmeyer HD 54
Rep. Brian Moore HD 58
Rep. Mark Smith HD 71
Rep. Tom Sands HD 88
Rep. Jim Lykam HD 89

This is the third election cycle that the IRFA PAC has given such recognition.

The state is the nation’s leader in renewable fuels production, with 42 ethanol refineries capable of producing more than 3.8 billion gallons annually, including 2 million gallons of cellulosic ethanol production and two more cellulosic ethanol facilities currently under construction, and 12 biodiesel facilities able to crank out nearly 315 million gallons annually.

Iowa Plant Produces First Cellulosic Ethanol

qccp-cellulosic-gallonThe very first commercial-scale cellulosic ethanol gallons produced in Iowa flowed from the Quad County Corn Processors (QCCP) distillation unit Tuesday, bringing smiles to the faces of the plant team members who posed with a bottle of the historic fuel.

The event marks the official commissioning of the farmer-owned ethanol plant’s Adding Cellulosic Ethanol (ACE) project, which broke ground in Galva, Iowa not quite a year ago. The new “bolt-on” process adds the capability to convert the kernel’s corn fiber into cellulosic ethanol, in addition to traditional corn starch ethanol.

quad-county “Our Adding Cellulosic Ethanol (ACE) project will not only increase our plant’s production capacity by 6 percent, but it will also continue to boost energy security and provide consumers with more low-cost, cleaner-burning ethanol without adding any additional corn to the production process,” said QCCP CEO Delayne Johnson, who also noted the new technology will improve the plant’s distillers grains (DDGs) co-product. “As a result of the new process, the DDGs will be much more similar to a corn gluten meal. It will increase the protein content of the livestock feed by about 40 percent, and we also expect to see a boost in corn oil extraction by about 300 percent,” he said.

Listen to Johnson explain the process at the 2014 National Ethanol Conference: Remarks by Delayne Johnson, Quad Council Corn Processors

The Iowa Renewable Fuels Association (IRFA) offered congratulations to the QCCP team for becoming the first commercial-scale cellulosic ethanol producer in Iowa. “While the EPA continues to debate the Renewable Fuel Standard (RFS) for 2014 and beyond, renewable fuels producers like Quad County Corn Processors remain committed to pioneering new technologies that increase plant productivity and accomplish the goals set forth by the RFS,” said IRFA Executive Director Monte Shaw, adding that the state has other cellulosic ethanol projects nearing completion.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen says the first gallon of cellulosic ethanol represents just the beginning of a long, promising future. “It is worth noting that Quad County is the perfect demonstration of first and second generation ethanol being produced side-by-side to bring more choice to America in the form of low-cost, high-octane, renewable fuel,” said Dinneen.

Syngenta recently partnered with QCCP to license the ACE technology, which is used in combination with the Enogen corn trait.

Murphy USA Offering E15, E85 in Indianola, IA

Murphy USA is now offering E15 and E85 in Indianola, Iowa location. This station is the first one to begin selling the ethanol fuel blends in Iowa, with six more locations coming online over the next few months. By the end of the summer, E15 and E85 will be available at Murphy USA locations in Clinton, Davenport, Fort Dodge, Mason City, Newton, and Sioux City, Iowa. Murphy USA made a major announcement several months ago that it would begin offering E15 and higher level ethanol blends to consumers at its retail stations throughout the country.

logo-murphy-usa“We are very proud Murphy USA chose to expand its offerings of cleaner-burning ethanol blends in Iowa,” said Iowa Renewable Fuels Association (IRFA) Managing Director Lucy Norton. “There is strong collaboration in Iowa for servicing the E15 market, making it an ideal place to offer E15 at multiple locations. When the conversion is complete, motorists in seven large Iowa cities will have easy access to lower-cost, more locally-produced ethanol blends.”

In accordance with summertime fuel regulations, E15 will only be sold to flex-fuel vehicles throughout the summer driving season at Murphy USA locations. In mid-September, E15 will be available to all consumers driving 2001 and or newer vehicle. In addition, Iowa motorists will soon have greater access to biodiesel at Murphy USA’s Clinton, Davenport, Fort Dodge, Mason City, and Sioux City locations.

“We’re happy to see a major retailer like Murphy USA move their E15 and E85 efforts into Iowa,” added Renewable Fuels Association (RFA) Director of Market Development Robert White. “This should demonstrate to others that the business case for these fuels exists, and that more chains will follow Murphy USA’s lead.”

The Murphy USA Indianola fueling site is located at 1502 N. Jefferson Street. Of Murphy USA’s 1,200 stations in 23 states, the Indianola location will be the second Murphy USA station to offer E15, and the third Murphy USA station to offer E85. In addition to higher ethanol blends, Murphy USA’s Iowa locations will offer three grades of gasoline blended with 10 percent ethanol.

Iowa Sets New Record for First Quarter E85 Sales

Iowa flex-fuel drivers (FFVs) have set a new E85 record with the purchase of 2,707,231 gallons of E85 in the first quarter of 2014, according to data released by the Iowa Department of Revenue. The more than 2.7 million gallons of E85 sold is a new first quarter record, and nearly a 48 percent increase over the first quarter of 2013.

Flex Fuel Pump at Hy-Vee Mills Civic Parkway in Des Moines IA 6-16-14“As the EPA debates slashing 2014 requirements under the Renewable Fuel Standard (RFS), the cost-savings of ethanol-blended fuels continues to grow and Iowans are purchasing E85 at a record rate,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “When you follow-up a record year for E85 sales in 2013 with record E85 sales in the first quarter of 2014, it’s further proof that when given the choice, consumers will choose cleaner-burning, lower-cost ethanol blends.”

Yesterday, IRFA also reported the largest wholesale price spread between E85 and regular gasoline since it began tracking prices through its Weekly Iowa E85 Wholesale Price Listing Service. On Monday, June 23, the average price of regular 87-octane gasoline without ethanol was $3.23 per gallon at the Des Moines Terminal, according to OPIS. Meanwhile, Absolute Energy, an ethanol plant in St. Ansgar, Iowa, was selling E85 for $1.64 per gallon.

“At the wholesale level, E85 is being sold for nearly half the price of regular gasoline – that’s right, it’s nearly 50 percent cheaper,” added Shaw. “With Fourth of July travel just around the corner, it will literally pay for flex-fuel vehicle owners to find E85 along their route.”

E85 Found for $1.39 Less Than Gas In Iowa

For several months, the Iowa Renewable Fuels Association (IRFA) has been tracking wholesale E85 prices in Iowa and this week found the largest price differential since they began the E85 Price Listing Service: $1.39 per gallon less than gasoline wholesale.

Kum and Go E85 station in Stuart, IA on June 16, 2014. Price: $2.74 per gallon. Photo; Joanna Schroeder

Kum and Go E85 station in Stuart, IA on June 16, 2014. Price: $2.74 per gallon. Photo: Joanna Schroeder

On Monday, June 16, the average price of regular 87-octane gasoline without ethanol was $3.18 per gallon at the Des Moines Terminal, according to OPIS. Meanwhile, Absolute Energy, an ethanol plant in St. Ansgar, Iowa, was selling E85 for $1.79 per gallon.

“E85 is currently being sold in wholesale markets across Iowa at more than a $1.00 per gallon discount to regular gasoline, and that’s serious savings for Iowa families,” said IRFA Executive Director Monte Shaw. “With the Summer driving season in full swing and uncertainty in the Middle East keeping oil prices elevated, using ethanol is not only helping to support the state’s economy and energy security, it’s also providing Iowa families with a much needed price break at the pump.”

E85 is a fuel blend containing between 70 and 85 percent ethanol. E85 is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV). Click here to see a list of all the E85 stations in Iowa. To determine if your vehicle can use E85, please check your owner’s manual, the vehicle’s fuel cap, or click here for a list of FFVs.

New Biofuel Station Coming to Inwood, Iowa

A new biofuel station will soon be coming to Inwood, Iowa. Oak Street Station, when completed, will offer higher blends of ethanol and biodiesel to motorists. More specifically, the station will offer ethanol blends E10, E15, E30 and E85, as well as biodiesel blends B5 and B99.9 for independent jobbers and special use customers.

Flex Fuel pump “We’re excited to have received a ‘Fueling Our Future’ grant that will enable us to grow our business and offer unique, locally-produced, clean-burning renewable fuels to Inwood motorists,” said Oak Street Station Accountant Lisa Van Regenmorter. “This funding will allow us to put in the infrastructure to offer higher blends of renewable fuels that are not currently available in the area.”

Oak Street Station was selected to receive $125,000 in funding for the new site from Iowa Governor Terry Branstad’s “Fueling Our Future” program, administered by the Iowa Department of Transportation (IDOT) and the Iowa Department of Agriculture and Land Stewardship (IDALS).

“We congratulate Oak Street Station on becoming a center for renewable fuels by offering some of the highest levels of ethanol and biodiesel available in Northwest Iowa,” added Iowa Renewable Fuel Association (IRFA) Managing Director Lucy Norton. “This innovative approach will keep Iowa in the forefront of the biofuels revolution and provide motorists with greater access to the cleanest, lowest-cost fuels available.”

The new fueling site will feature three ethanol blender pumps and five biodiesel fueling positions, in addition to a vehicle service center and convenience store. Construction is scheduled to begin this summer, with completion expected in January 2015.

FEW Panel Looks Back and to Future of Ethanol

Lucy Norton IRFAAttendees of this week’s 30th Annual Fuel Ethanol Workshop (FEW) heard a discussion of 30 years of past and the next five years ahead for ethanol.

“I think one of the opportunities we missed 30 years ago was developing a national brand for ethanol,” says Lucy Norton with the Iowa Renewable Fuels Association (IRFA). “We let the industry that didn’t like the fact we were taking away 10 percent of their market name it, label it, sell it the way they wanted to,” missing out on a huge opportunity to create an image for ethanol of a high-performance, low-cost fuel.

But, she’s not just about looking back. Lucy credits their new efforts to market and brand ethanol to the high-performance vehicles of NASCAR as a way to correct that image. Fans are able to see ethanol’s performance in their favorite racers’ vehicles and realize they too can have ethanol in their tanks. She says as they build that demand for the green fuel, they also need to make sure the infrastructure is in place so consumers are able to access ethanol.

Moving forward, Lucy says they are looking to higher blends of ethanol, such as E15, as the way to increase the amount of ethanol sold and used in this country.

“We need a way to sell unhindered higher blends of ethanol and convince marketers and petroleum refiners that there is market for low-vapor pressure gasoline in the Midwest and other parts of the country. If they would just ship it here, we would find them the customers.”

You can listen to Leah’s interview with Lucy here:Interview with Lucy Norton, Iowa RFA

Check out the 2014 Fuel Ethanol Workshop photo album.

Summer Means No E15

It’s summer vacation time for 15% ethanol blends but not by choice.

E15 sign“The Environmental Protection Agency’s outdated interpretation of Reid Vapor Pressure (RVP) regulations is preventing the sale of E15 in most of the country during the busy summer driving season, adding billions to travelers’ fuel costs,” said American Coalition for Ethanol senior vice president Ron Lamberty. By unnecessarily limiting the sale of E15 to only flex-fuel vehicle (FFV) owners from June 1 to September 15
in areas where most gasoline is used, Lamberty says EPA is effectively requiring drivers to purchase lower octane fuel for 5 to 40 cents.

Iowa leads the nation with 20 registered E15 stations and Iowa Renewable Fuels Association Managing Director Lucy Norton says they have to shut down the pumps in the summertime. “If oil refiners chose to ship gasoline with the proper vapor pressure into our state, Iowa motorists could have expanded access to cleaner-burning, lower-cost E15 year-round, instead of it being temporarily restricted to only flex-fuel vehicles during the summer,” said Norton.

The Iowa legislature passed legislation to help ease costs Iowa retailers may incur when obtaining gasoline suitable for blending with 15 percent ethanol during the summer months. Under the legislation, Iowa’s E15 retailer tax credit to 10 cents from June 1 to September 15, up from the three cents it is the rest of the year.

“Ironically, E15 has a lower RVP than the fuel 95% of drivers are using, so EPA’s unwillingness to change a 25 year-old regulation effectively mandates higher evaporative emissions and higher prices during the busiest driving season of the year,” said Lamberty.

Iowa Gov Signs Biodiesel, Ethanol Measures into Law

irfa-poetIowa Governor Terry Branstad has signed into law measures seen as good for ethanol and biodiesel in his state, a move much welcomed in an area that is a major player in the renewable fuel market. Branstad was joined by other state dignitaries, as well as officials from the Iowa Renewable Fuels Association (IRFA) and ethanol producer POET, which hosted the signing of Senate File 2344 at its Coon Rapids, Iowa refinery today. The new law extends the state’s biodiesel production tax credit and enhances the state’s E15 retailer tax credit.

“I’m proud to sign this renewable fuels bill that received such wide, bipartisan support from the entire Iowa legislature and promotes E15, biodiesel and bio-butanol” stated Iowa Gov. Terry Branstad. “I have been a staunch supporter of protecting Iowa jobs and Iowa motorists’ access to cleaner, locally-produced renewable fuels, and this bill does exactly that.”

“Today is a great day for Iowa’s renewable fuels community,” stated IRFA Policy Director Grant Menke. “We commend Gov. Branstad, Lt. Gov. Reynolds, and the entire Iowa legislature for standing beside renewable fuels, protecting Iowa jobs, and safeguarding consumer access to low-cost, homegrown biofuels.”

“We are excited Gov. Branstad selected our facility to mark the officially signing of this important bill,” said Bill Howell, General Manager of POET Biorefining – Coon Rapids. “The state of Iowa continues to be very supportive of the biofuels industry and this bill is yet another example of that support. Here at POET, we look forward to continued expansion of E15 throughout the state and nation, which will allow consumers to enjoy additional options at the pump.”

The law also defines biobutanol as a renewable fuel option for Iowans.