Export Exchange Tours Build Relationships

badger-visitMany of the international teams visiting the United States last week for the 2014 Export Exchange also participated in tours before and after the event to see ethanol plants and farms across the Midwest.

Badger State Ethanol in Wisconsin had the honor of hosting a team of buyers from the Kingdoms of Saudi Arabia and Jordan. The KSA/Jordan team included companies representing the major dairy and poultry companies and major importers of feed grains in both countries and have been buyers of DDGS in the last couple of years.

exex-bob-tomHeld every other year by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA), Export Exchange brings together more than 200 international buyers with U.S. sellers of corn, sorghum, barley, distiller’s dried grains with solubles (DDGS), corn gluten meal and corn gluten feed. Over the course of three days of events and the pre- and post-tours, these individuals not only do business directly but also make connections to facilitate future sales.

“This year’s Export Exchange was a resounding success,” said RFA president Bob Dinneen, pictured here with USGC president Tom Sleight. “In addition to new business agreements, it is my hope that attendees from all across the world will return home with a better understanding of international grain markets, domestic supply and demand of DDGS and coarse grains, and the current political landscape.”

RFA Promoting Distillers Feed at Export Exchange

rfa-exex-2014The 2014 Export Exchange is continuing today in Seattle, Washington with representatives from more than 50 different countries in attendance to learn more about DDGS, the distillers feed product produced by U.S. ethanol plants.

The Renewable Fuels Association (RFA) is co-sponsor of the event with the U.S. Grains Council and RFA president and CEO Bob Dinneen says it’s because we produce a lot of distillers feed. “Our plants, if they were a single country, would be the fourth largest producer of corn equivalent feed, behind only the U.S., China and Brazil,” said Dinneen, who spoke at the event yesterday on agricultural policies and politics. Interview with RFA CEO Bob Dinneen at 2014 Export Exchange

rfa-cooper-exexRFA Senior Vice President Geoff Cooper spoke at the event on the supply and demand outlook for DDGS.

“We have ample supplies of distillers grains coming from the U.S. ethanol industry but the demand picture is somewhat murky,” said Cooper. “That murkiness has to do with trade barriers and interruptions in the global trade of distillers grains that we’re seeing.”

Cooper says the U.S. is expected to produce 36-37 million metric tons of DDGS in the current marketing year, but one of the biggest trade disruptions in the market is being created by China’s demand that shipments of distillers grains must be certified to be free of the MIR162 biotech corn trait. “That kind of certification is not possible,” said Cooper. “So, we expect exports to China to be significantly curtailed or even halted until this situation is resolved.”

Last year, half of the U.S. distillers grains exports went to China, but Cooper says there are other countries increasing imports. “We are seeing continued growth of distillers grains exports to other parts of Asia outside of China,” he said, adding that Mexico is increasing imports and countries such as Egypt and Turkey are also growing markets. Interview with RFA Senior VP Geoff Cooper at 2014 Export Exchange

Ethanol Report on E85 Study and Contest

ethanol-report-adThe Renewable Fuels Association (RFA) is looking for visual evidence of prices for 85% ethanol (E85) around the country.

“We’re doing an E85 “Post your Price” contest,” says RFA Vice President, Industry Relations, Robert White. “That came about from a study we just concluded in St. Louis this summer.”

That study showed evidence of price gouging for E85, with retail prices were around $1 per gallon higher than was justified by wholesale prices for the locally available ethanol blendstock.

In this edition of the Ethanol Report, White talks about the study and the new contest.

Ethanol Report on E85 study and contest

Ethanol Industry Applauds Abengoa

abengoaMembers of the ethanol industry joined with government leaders in applauding Abengoa at the opening of its $500 million cellulosic ethanol plant in Hugoton, Kansas last week.

Among those on hand for the celebration was Renewable Fuels Association (RFA) Vice President of Industry Relations Robert White who says Americans should be proud of the new plant “because this phantom fuel, as the naysayers like to call it, is here and it’s here to stay.”

However, White says they are concerned that this third cellulosic plant opening this year could be the last if EPA fails to continue implementing the Renewable Fuel Standard (RFS) as Congress intended. “There may never be another celebration like this and it’s sad but true,” he said. “This promise was made years ago and (the administration) needs to stick to it.”

Interview with RFA's Robert White at Abengoa Opening

Abengoa Cellulosic Ethanol Plant Grand Opening photo album.

RFA Hammers CARB on ILUC Analysis

Renewable Fuels Association’s (RFA) President and CEO Bob Dinneen has submitted a letter to the California Air Resources Board (CARB) where he expresses concern over their analysis of indirect land use (ILUC). He writes, “serious concerns about the openness, transparency, and scientific integrity of staff’s new indirect land use change (ILUC) analysis for the California Low Carbon Fuel Standard (LCFS).”

On September 29, 2014 CARB hosted a workshop where they disclosed they were planning to disregard the latest published research on ILUC. They have committed to using the current ILUC modeling despite the voluminous amount of stakeholder comments received.

RFANewlogoRFA, along with near 40 other stakeholders, submitted detailed technical comments in April 2014 aimed at improving CARB’s analysis, but “it was abundantly clear that the information submitted by stakeholders in the spring had been wholly disregarded” by the time CARB held its September public workshop. CARB staff gave no reason as to why it ignored the comments “even when stakeholders explicitly asked for staff’s rationale for ignoring new information.” CARB staff also remained vague about future plans to examine the new information. Because CARB staff failed to explain why it disregarded the technical comments submitted by RFA in April, the extensive comments were re-submitted.

Moreover, Dinneen’s letter highlighted CARB staff’s misguided belief that it is “not productive” to examine real-world data concerning agricultural land use. Dinneen remarked that, “Any objective scientist would find it prudent to examine the real-world data to determine whether predictive model results agreed with actual observed outcomes… Certainly, it is difficult to disentangle the real-world impact of biofuels expansion from the effects of other factors on actual global land use—but that does not mean CARB staff shouldn’t at least attempt to ground-truth its predictive results against real-world data.”

As an example of the disconnect between CARB’s ILUC modeling results and the real world, Dinneen noted that CARB’s model predicted that roughly 100,000 hectares of forest would be converted to cropland for biofuels production between 2001 and 2015. But real-world data show no U.S. forest loss has occurred; instead, U.S. forestland has grown 7 million hectares since 2001.

Dinneen concluded by calling on CARB to ensure its staff is transparent in its decision making and responsive to legitimate stakeholder concerns, stating, “We urge you to ensure that the CARB staff responsible for the ILUC analysis are held accountable for their decisions and abide by the agency’s long-standing norms for science-based rulemaking.”

The full letter can be found here.

E85 “Post Your Price” Contest

Fuel prices are on the decline and the Renewable Fuels Association wants to know how low E85 is at your station.

Flex Fuel Pump at Hy-Vee Mills Civic Parkway in Des Moines IA 6-16-14In an effort to promote E85 (85 percent ethanol, 15 percent gasoline) sales and track E85 prices, RFA is offering the opportunity to win FREE E85 for one year with a simple snap of a camera and click of a mouse. All you have to do is submit a photo of an E85 pump to www.chooseethanol.com/PostYourPrice and the winner will be drawn at random. E85 is currently sold at more than 3,440 stations and is approved for use in all flex-fuel vehicles.

“The more information we collect on E85 prices, the more we are able to track and ensure consumers receive a fair price for the high-octane, environmentally-friendly fuel. We hope consumers have fun with this contest, but also understand the cost-saving benefits of higher-level ethanol blends,” stated Bob Dinneen, president and CEO of the RFA.

E85 offers tremendous price savings for consumers, often being sold at $0.75–1.00/gallon less than E10 gasoline. However, RFA recently uncovered signs of price gouging in the St. Louis market during the 2014 summer driving season. It examined retail E85 prices at nine Big Oil-branded stations, finding an average E85 price of $3.48/gallon while the average E10 price stood at $3.45/gallon. The St. Louis retail price for E85 was surprising, given that wholesale E85 prices in St. Louis averaged $2.58/gallon compared to $2.93/gallon for E10. When factoring in RFS RIN prices, locally-available ethanol prices, hydrocarbon blendstock, and a more typical markup, RFA concluded that E85 could have been sold to consumers at retail prices as low as $2.44–2.55/gallon.

In addition to an overall winner, two others will be chosen receive free E85 for a month. This award will be given to the individual who posts a photo of the largest gap between E85 and regular unleaded gasoline and the individual who posts a photo of the smallest gap between E85 and regular unleaded gasoline.

Find out more about the contest here.

Ethanol Advocacy App

ethanol-report-adIf you’re an ethanol advocate, there’s an app for that from the Renewable Fuels Association (RFA).

In this edition of the Ethanol Report, RFA president and CEO Bob Dinneen talks about the new app, what it does, who should use it, and why they developed it. He also comments on when we might yet see a final rule on the 2014 volume requirements under the Renewable Fuel Standard and how railway transportation issues continue to impact the industry.

Ethanol Report on New Advocacy App

Get the New RFA Advocacy App

RFA Advocacy AppThe Renewable Fuels Association has just announced a new mobile app – RFA Advocacy.

The app is free of charge and available to download on all iPhones and Android-powered smartphones. The app offers easy access to RFA’s talking points, charts, videos, and infographics. It also features RFA’s newsfeed, maps of Capitol Hill, a one-stop social media sharing platform, and easy-to-use legislative tracking of key bills and votes.

“We wanted to offer a mobile one-stop-shop for all key ethanol-related information,” said Bob Dinneen, president and CEO of the RFA, when discussing the new app. “RFA’s mobile app offers something for everyone. There are talking points to help counter the fictional food vs. fuel argument, information on cellulosic ethanol, and a list of 75 facts about ethanol. RFA’s technical expertise is easily accessible with a touch of the charts, videos, or infographics sections. Additionally, anyone interested in contacting their Member of Congress can easily locate them as well as submit an opinion on key ethanol-related legislation all without leaving the app.”

Dinneen continued, “It is my hope that this new technology will give individuals the tools they need to combat attacks against the ethanol industry, inform friends and family about the benefits of ethanol, and remain engaged in ethanol-related policymaking and legislation.”

Search for it in the iTunes App Store and Google Play.

RFA Updates Fueling A Nation, Feeding the World

An updated version of the paper “Fueling a Nation, Feeding the World,” has been released by the Renewable Fuels Association (RFA). The publication outlines ethanol’s contribution to the global food and feed supply and also contains information that RFA said disproves the “fabricated food vs. fuel” debate.

Fueling a nation“The U.S. ethanol industry has quietly evolved into one of the largest feed processing sectors in the world, generating nearly 40 million metric tons of high-protein, high-energy animal feed in the 2013/14 marketing year,” said Bob Dinneen, RFA president and CEO. “The RFA publication is a resource intended to educate policymakers and consumers about the industry’s role in producing feed, to counter the nonsensical food vs. fuel notion, and explain the benefits of ethanol production and co-products for both food and feed markets.”

The booklet outlines the co-products of ethanol production, such as distillers grain, corn distillers oil and corn gluten feed. For example, a 56-pound bushel of corn will yield 2.8 gallons of ethanol and 17 pounds of distillers grain, which is commonly fed to beef cattle, dairy cows, swine, poultry, and even fish. The handbook explains that “the feed produced by ethanol plants in 2013/14 would be enough to produce nearly 50 billion quarter-pound hamburger patties — or seven patties for every person on the planet.”

The publication concludes by stating, “Not only are U.S. ethanol producers helping to meet future demands for energy, but they are also helping to meet the increasing food and feed needs of a growing world.”

RFA will be sharing the booklet with international buyers and U.S. producers of ethanol-related co-products, such as distillers grain, at the Export Exchange taking place in Seattle, Washington October 20-22 2014.

Small Biodiesel Maker Closing Indicative of RFS Problem

yokayo1While the closing of one small biodiesel maker in California might not seem like big news, it’s certainly indicative of the problems facing the industry, big and small producers alike. This story from the Ukiah (CA) Daily Journal says that Yokayo Biofuels, which turned waste cooking oil into biodiesel, has closed.

[Kumar Plocher, Yokayo Biofuels' CEO] says the biggest reason for their closure was due to a lack of government support both at the state and federal levels. He explains that the carbon credit programs, those where petroleum companies are required to buy a certain amount of renewable fuels, allowed his company to bank carbon credits, normally valued high based on demand. This year state and federal value levels were very low: the state’s due to tampering by global companies that flooded the market and at the federal’s due to the Obama administration and the EPA. “Every year the federal government is supposed to raise the requirement of renewable fuel that should be purchased. At the beginning of 2014, they did not do that; they kept it static. They waited until September to announce a tiny increase, and by that time the damage was done and carbon credits were worthless all year. Every mid-term election year, the dollar per gallon subsidy that goes to biofuels has been absent; they wait until after the election.”

Plocher’s complaint is a common one among advanced biofuel makers and their advocates this year. In fact, at the recent National Advanced Biofuels Conference & Expo, Michael McAdams, founder and president of the Advanced Biofuels Association, said the partnership between the federal government and industry has to have clarity and certainty, but that’s not been the case lately.

“What we haven’t had in the last two years is certainty for the people I represent in the advanced and cellulosic sector,” McAdams said.

Similarly, Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA), pointed to the U.S. Department of Agriculture’s estimates that corn prices will hit an eight-year low because of the government’s failure to follow through on the promises made in the Renewable Fuel Standard (RFS).

“Indeed, today’s USDA report should be the closing argument in the debate over the 2014 RFS final rule,” Dinneen continued. “When farmers made their planting decisions for the 2014 season, they anticipated that the Environmental Protection Agency (EPA) and the White House would continue to enforce the statutory RFS volumes. But in one fell swoop, the EPA’s proposed rule wiped away demand for 500 million bushels of corn and grain sorghum. Now, farmers are faced with corn prices below the cost of production and the risk of returning to an era of increased reliance on federal farm program payments.”

There is a little good news in all of this. Plocher was able to sell Yokayo Biofuels’ biodiesel assets to like-minded Simple Fuels.

Crop Report Underscores Need for Market Certainty

The U.S. Department of Agriculture (USDA) has released new corn crop estimates that confirm another record setting corn crop and after accounting for the surplus after all demands are met, will hit a 10-year high. The WASDE report predicts the final 2014 corn crop at 14.48 billion bushels based on a record average yield of 174.2 bushels per acre In addition, WASDE estimated global grain stocks will reach a 14 year high.

While the corn crop is at record levels, corn prices are falling. USDA projected prices will average $3.40 per bushel – the lowest in eight years. This is also below the cost of production for more farmers.

“API [American Petroleum Institute] has spent millions upon millions of dollars on ad campaigns trying to sell people on the canard that ethanol drives up food prices in a misguided attCorn Harvestempt to garner opposition to the Renewable Fuel Standard (RFS),” said Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA). “But their argument is bankrupt. Because of the RFS, farmers have invested in technology and increased yields to assure ample supply for all users. Today’s report demonstrates the API campaign is intellectually dishonest.

“Indeed, today’s USDA report should be the closing argument in the debate over the 2014 RFS final rule,” Dinneen continued. “When farmers made their planting decisions for the 2014 season, they anticipated that the Environmental Protection Agency (EPA) and the White House would continue to enforce the statutory RFS volumes. But in one fell swoop, the EPA’s proposed rule wiped away demand for 500 million bushels of corn and grain sorghum. Now, farmers are faced with corn prices below the cost of production and the risk of returning to an era of increased reliance on federal farm program payments. The White House has an opportunity to help alleviate this situation simply by fixing the badly misguided 2014 RFS proposal and getting the program back on track.”

RFA Brings Ethanol Safety Program to Canada

Ethanol safety has been shared with the Canadians. The Renewable Fuels Association (RFA) met with Transport Canada’s Emergency Response Action Plan (ERAP) Task Force to educated them on emergency preparedness.

Ethanol Safety SeminarRFA’s Vice President of Technical Services, Kristy Moore, spoke remotely to Transport Canada’s ERAP Task Force and detailed current RFA safety initiatives, outlined transportation methods available for ethanol distribution specifically focusing on rail, and delivered an overview of the U.S. ethanol industry.

“A solid emergency response program is vital to everyone — no matter the country — and I applaud Transport Canada for having the foresight to get ahead of the game and formulate a national emergency response program,” said Moore. “We are excited to begin working with them to translate RFA safety materials into French and help them develop an ethanol safety seminar program similar to the very successful RFA program here in the States.”

RFA has been involved in ethanol education around transportation safety and emergency response for many years. The Association is a founding member of the Ethanol Emergency Response Coalition (EERC) and joined TRANSCAER — a transportation safety initiative that focuses on community emergency response — in 2007. RFA worked with the EERC to establish an ethanol safety seminar program that goes around the country educating local firefighters and first responders on the best way to respond to a potential emergency situation. The seminars utilize the RFA’s “Training Guide to Ethanol Emergency Response”. Nearly 150 safety seminars have been held in 27 states.

“PUMP” Movie Getting Good Reviews

pump-movieA new documentary film that explores the history of the American fueling infrastructure and how it has led to today’s oil-dominated market, which features some ethanol industry figures, is being well received by critics and viewers alike.

“PUMP” the movie, opened last month and has a rating of 71% fresh on Rotten Tomatoes, with an 82% audience approval rating. Big name reviewers like the New York Times and Variety have had very good things to says about the movie.

The film is the latest from Josh and Rebecca Tickell, who have done other documentaries on alternative fuels beginning with FUEL, released in 2009, that focused on biodiesel.

PUMP features several familiar faces of folks known in the renewable fuels industry, including “Energy Victory” author Dr. Robert Zubrin, Biofuels Digest Editor Jim Lane, and Renewable Fuels Association Vice President for Industry Relations Robert White.

“Not often do small town farm kids from Kansas make it to Hollywood’s big screen, but I am fortunate enough to be one of those, if even for just a few seconds,” writes White in a column today for the E-xchange Blog. “The opportunity to be a part of an educational effort of this scale is not only rewarding, it is exciting.”

To find out more about the movie and when it might be playing in your area – check out PumpTheMovie.com and like it on Facebook.

RFA Case Study: Evidence of E85 Price Gouging?

According to a new case study from the Renewable Fuels Association (RFA), E85 retailers in the St. Louis area may be intentionally price gouging consumers. According to the report, during the 2014 summer driver season, the average E85 price was 12 percent Evidence of Price Gouging RFA Case Studybelow gasoline prices at the wholesale level but one percent higher than gas prices at the retail level. The wholesale-to-retail markup on E85 was nearly twice the markup on gas. In addition, the study concluded that E85 retail prices were around $1 per gallon higher than was justified by wholesale prices for the locally available ethanol blendstock.

The study’s results offer “… clear support for the notion that some gasoline producers/suppliers and their franchised retailers purposely employ E85 pricing strategies meant to discourage E85 consumption and negatively influence consumer perceptions about the fuel.”

Bob Dinneen, president and CEO of the RFA, said of the case study, “It’s fairly obvious that the retailers examined in this study—all of whom are branded by one of the Big Five oil companies—don’t really want to sell E85. In many cases it appears they were pricing E85 above their branded gasoline for the sole purpose of making their gasoline prices look more attractive to the consumer. Sneaky E85 pricing strategies ultimately give oil refiners the opportunity to wrongly claim that consumers are ‘rejecting’ E85; and it gives them an opportunity to claim they can’t comply with Renewable Fuel Standard (RFS) requirements above the so-called ‘blend wall.’ This study exposes the utter hypocrisy of that argument.”

RFA tracked E85 and gasoline (E10) prices at all nine retail stations selling E85 in the St. Louis metro area. All nine stations carry the brand of one of the five largest integrated oil production and refining companies. This makes the St. Louis E85 market highly unusual because nationwide “…retail stations affiliated with a ‘Big Five’ oil company brand are four to six times less likely to offer E85 than independent or unbranded stations.”

Across more than 250 observations during the summer, the average E10 retail price was $3.45 per gallon and the average E85 retail price was $3.476 per gallon. Meanwhile, E85 was available at a local wholesale terminal for an average of $2.58 per gallon, while E10 averaged $2.93 per gallon at the wholesale level. Based on prices for locally available ethanol, hydrocarbon blendstock, RFS RIN (Renewable Identification Number) credits, and a typical markup, E85 could have been offered at retail for $2.44–2.55 per gallon. Continue reading

Ethanol Report with New RFA Chairman

ethanol-report-adRandall Doyal, General Manager and CEO of Minnesota-based Al-Corn Clean Fuel, is the new Chairman of the Board of Directors for the Renewable Fuels Association (RFA).

rfa-doyal-1Doyal’s plant located in Claremont, Minnesota opened in 1996 and now produces 50 million gallons annually. In this interview, he talks about some of the challenges and opportunities facing the ethanol industry in the immediate future. Challenges include the lack of certainty surrounding the Renewable Fuel Standard (RFS) and railway transportation problems, while the importance of ethanol as a higher octane fuel and increasing exports are rising opportunities.

Ethanol Report with New RFA Chairman