Grains Council Working on Ethanol Exports

usgrainscouncil1The U.S. Grains Council (USGC) is working on promoting exports of U.S. ethanol through a partnership between USDA’s Foreign Agriculture Service, Growth Energy and the Renewable Fuels Association (RFA).

“We’ve been working since late March, early April to determine which markets we’re going to do market assessments in and then next year we’ll shift into market development activities,” said Ashley Kongs, USGC manager of ethanol export program. The Grains Council is planning three regional market assessment programs this year, going to Japan and Korea in September, Latin America in November, and southeast Asia in early December.

Earlier this year, USGC participated in a trade mission to China with USDA Undersecretary Michael Scuse where they were able to discuss the possibility of ethanol exports to that country. “They visited with a Chinese ethanol plant and they had meetings with the National Energy Administration in China,” said Kongs. “Currently ethanol can only be sold in six designated markets in China for blending with fuel, but the group had discussions about the possibility of expanding ethanol use nationwide.” Kongs says while there are challenges in the Chinese market, the Grains Council sees great potential for the future to open the door for U.S. ethanol exports.

USGC continues to build on its success in promoting exports of the ethanol co-product distillers grains and will be again this year joining RFA in hosting the Export Exchange, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products held every two years. Early registration for the event is open until July 31 and USGC and RFA members are eligible for discounted pricing.

USDA Promotes Rural Wood-to-Energy Projects

usda-logoRural energy projects from wood on the land where it’s grown are getting a boost. The U.S. Department of Agriculture (USDA) awarded more than $2.5 million in grants to develop wood energy teams in 11 states and an additional $1.25 million for nine wood energy projects.

“Renewable wood energy is part of the Obama Administration’s ‘all of the above’ energy strategy,” [Agriculture Secretary Tom] Vilsack said. “Working with our partners, the Forest Service is supporting development of wood energy projects that promote sound forest management, expand regional economies and create new rural jobs.”

The federal funds will leverage more than $4.5 million in investments from USDA partners. Under the terms of the agreements announced today, private, state and federal organizations will work together to stimulate the development of additional wood energy projects in their states. Activities may include workshops that provide technical, financial and environmental information, preliminary engineering assessments and community outreach needed to support development of wood energy projects.

Grant recipients are from: Arizona, Colorado, Kentucky, Montana, New Mexico, New York, Oregon, Vermont, Washington, Wisconsin and West Virginia.

In addition, USDA announced money to use woody material from the National Forest System lands, such as beetle-killed trees, to improve forest health and aid in wildfire prevention. More information is available on the Statewide Wood Energy Teams (SWET) and Wood to Energy Grant Recipients website.

USDA Renews Biomass Crop Assistance

Biomass producers and energy facilities can soon apply for assistance to turn renewable biomass materials into clean energy under the Biomass Crop Assistance Program (BCAP) reauthorized by the 2014 Farm Bill.

usda-fsaThe Farm Bill authorizes $25 million annually for BCAP, requiring between 10 and 50 percent of the total funding to be used for harvest and transportation of biomass residues. Traditional food and feed crops are ineligible for assistance. The 2014 Farm Bill also enacted several modifications for BCAP, including higher incentives for socially disadvantaged farmers and ranchers, and narrower biomass qualifications for matching payments, among other changes.

Farm Service Agency
Administrator Juan Garcia says the initiative helps farmers and ranchers manage the financial risk of growing and harvesting energy biomass at commercial scale. “Investing in agricultural and forestry producers who cultivate energy biomass and supporting next-generation biofuels facilities make America more energy independent, help combat climate change and create jobs in rural America.”

“The potential to achieve transformational progress on biomass energy in rural America and generate tremendous economic opportunities is very promising,” added Garcia. “Energy crops occupy the space between production and conservation, providing opportunities for marginal land, crop diversity and more energy feedstock choices.”

The USDA Farm Service Agency (FSA), which administers BCAP, will coordinate BCAP enrollments. Information on funding availability will be published in an upcoming Federal Register notice.

Ethanol Groups Participate in China Trade Mission

RFANewlogoU.S. Department of Agriculture (USDA) Under Secretary for Farm and Foreign Agricultural Services Michael Scuse led a mission to promote U.S. agricultural exports in northeast China May 5-13. The mission is part of President Obama’s “Made in Rural America” export and investment initiative, designed to help rural businesses and leaders take advantage of new investment opportunities and access new customers and markets abroad.

growth-energy-logoTaking part in the mission to promote U.S. biofuels and co-product exports was Renewable Fuels Association (RFA) Director of Regulatory Affairs Kelly Davis and Jim Miller with Growth Energy.

During a press conference Tuesday to talk about the trade mission, Davis said it was her first trip to China and she was astounded by the number of cars on the roads and sees a great need for both biofuels and distillers grains for livestock feed in that country. Miller added that China provides an excellent market opportunity for the U.S. ethanol industry.

Also taking part in the trip and the press conference was Roger Johnson, president of the National Farmer’s Union. Ethanol Press Conference Opening Remarks

USDA Predicts Another Record Corn Crop

usda-logoThe U.S. Department of Agriculture released its initial assessment of the nation’s corn crop for the coming year on Friday, calling for another record based on the March 31
Prospective Plantings report.

Corn production is projected at 13.9 billion bushels, up slightly from the 2013/14 record with higher expected yields more than offsetting the year-to-year reduction in planted area. The corn yield is projected at 165.3 bushels per acre, up 6.5 bushels from 2013/14, based on a weather adjusted yield trend model and assuming normal mid-May planting progress and summer weather.

Farm organizations welcomed the news but sounded a note of caution.

corn-plant-14“America’s corn farmers continuously strive to improve and, in 2014, they certainly will make their achievements evident should these projections be realized,” said National Corn Growers Association Chairwoman Pam Johnson. “As farmers, we take great pride in our work and feel that the projections recognize our efforts. Yet, our optimism is tinged caution as we have all seen conditions change quickly and a crop shift course in a few short weeks.”

“Farmers are still out there facing the reality of unpredictable weather as they work to get their crops in the ground, favorable weather during the growing season and then cooperative weather again at harvest time,” added American Farm Bureau Federation crops economist Todd Davis. “There’s still a long way to go before the crops are in the bin.”

The USDA World Agricultural Supply and Demand estimate projects U.S. corn use for 2014/15 will be two percent lower than in 2013/14, while corn used to produce ethanol in 2014/15 is expected to be unchanged on the year with gasoline consumption expected to remain flat in 2015.

Ag Secretary Blames Oil Industry for RFS Attacks

vilsack-nafbDuring a meeting with members of the National Association of Farm Broadcasting on Tuesday, Agriculture Secretary Tom Vilsack had strong words for the oil industry and its attacks on the Renewable Fuel Standard (RFS).

“The oil industry has made a concerted, organized, well-financed attack on the Renewable Fuel Standard,” said Vilsack when asked about the EPA’s proposal to lower volume requirements for the RFS. “A lot of focus has been on the EPA and the administration, but it is the oil industry that has gone to court to try to limit the impact of the RFS. It is the oil industry that has gone to Capitol Hill to try to insert in appropriations bills and other bills an elimination or curtailment or restriction of the Renewable Fuel Standard.”

“It’s the oil industry working in concert with others that’s made it very difficult to expand higher blend availability,” the secretary continued. “So, what the EPA is doing I think is responding to the need to make sure that there is a strong, defensible RFS.” Vilsack says USDA shares that desire with the EPA. “Because there is no question there is a concerted attack and it is well-financed – and there is no question where the money is coming from.”

Listen to Vilsack’s comments here: Vilsack RFS comments to farm broadcasters

Thanks to Gary Cooper, AgNet West, for providing the audio.

2012 Ag Census Includes Renewable Energy

2012-censusThe 2012 Census of Agriculture shows a doubling of on-farm renewable energy production since 2007.

According to the census data released by USDA today, there were 57,299 farms that produced on-farm renewable energy in 2012, more than double the 23,451 in 2007. By far the biggest was solar panels, used on over 36,000 farms. Geoexchange systems and wind turbines each were used on more than 9,000 farms.

For renewable fuels, biodiesel was produced on 4,099 farms and ethanol on 2,397. Small hydro systems were used on about 1300 farms and methane digesters on 537.

The census reveals there are now 3.28 million farmers operating 2.1 million farms on 914.5 million acres of farmland across the United States. Those numbers are all lower than 2007 when the census reported 3.18 million farmers, 2.2 million farms and 922 million acres. The top 5 states for agricultural sales were California ($42.6 billion); Iowa ($30.8 billion); Texas ($25.4 billion); Nebraska ($23.1 billion); and Minnesota ($21.3 billion). Corn and soybean acres topped 50 percent of all harvested acres for the first time.

Census data is available from USDA online and a recording of the webcast release of the census data is here: USDA Releases 2012 Census Data

EPA and USDA Dispute Corn Stover Study

Two federal agencies joined the biofuels industry last week in seriously questioning the results of a University of Nebraska study that claims negative greenhouse gas emissions impacts in using corn stover for ethanol production.

corn_stover03 Photo: USDOE-NRELA statement by U.S. Environmental Protection Agency spokeswoman Liz Purchia about the report noted problems with “hypothetical assumption that 100 percent of corn stover in a field is harvested” which she calls “an extremely unlikely scenario that is inconsistent with recommended agricultural practices. As such, it does not provide useful information relevant to the lifecycle GHG emissions from corn stover ethanol. EPA’s lifecycle analysis assumes up to 50 percent corn stover harvest. EPA selected this assumption based on data in the literature and in consultation with agronomy experts at USDA to reflect current agricultural practices.”

During a forum on climate change right after the study hit the headlines last week, Agriculture Secretary Tom Vilsack also pointed out that it is based on a false premise. “The study started with an assumption about the way corn stover would be removed from the land. The problem with the assumption is no farmer in the country would actually take that much crop residue,” Vilsack said. “It’s not what’s happening on the ground. If you make the wrong assumption, you’re going to come up with the wrong conclusions.”

Work done by Dr. Douglas Karlen with the USDA Agricultural Research Service was cited several times in the UNL study. In response to questions from POET-DSM, which is using corn stover as feedstock at a plant in Iowa, Karlen said the study “makes unrealistic assumptions and uses citations out of context to reinforce the authors’ viewpoint.”

According to Dr. Karlen, the research fails to differentiate between responsible biomass removal and “excessive” biomass removal, projecting a removal rate of approximately 75% across the entire Corn Belt.

“Harvesting 75% of all corn stover produced in the 10 Corn Belt states is unrealistic, far greater than any projections made by the U.S. Department of Energy (DOE) in their projections for developing a sustainable bioenergy industry, and would certainly result in the depletion of soil organic matter.”

Simplifying Pyrolysis for Bio-Oil Production

pyrolysisoilU.S.Department of Agriculture (USDA) researchers are getting closer to developing a system that will help farmers make their own energy on the farm or produce biofuels for commercial purposes. This article from the USDA’s Agricultural Research Service (ARS) says scientists have found a way to simplify the pyrolysis processes for bio-oil.

These findings by ARS scientists Charles Mullen and Akwasi Boateng promote the USDA priority of finding new bioenergy sources.

Fast pyrolysis is the process of rapidly heating biomass from wood, plants and other carbon-based materials at high temperatures without oxygen. Using pyrolysis to break down tough feedstocks produces three things: biochar, a gas, and bio-oils that are refined to make “green” gasoline.

The bio-oils are high in oxygen, making them acidic and unstable, but the oxygen can be removed by adding catalysts during pyrolysis. Although this adds to production costs and complicates the process, the resulting bio-oil is more suitable for use in existing energy infrastructure systems as a “drop-in” transportation fuel that can be used as a substitute for conventional fuels.

The article goes on to point out that bio-oils made from oak and switchgrass by the new process had considerably higher energy content than those produced by conventional fast pyrolysis. Oak bio-oil’s energy content was about one-third higher and contained about two-thirds of the energy contained in gasoline. Switchgrass did even better with an energy content that was 42 percent higher, slightly less than three-fourths of the energy content of gasoline.

Forest Service Seeks Wood Energy Applications

forestserviceIn honor of Earth Day today, the U.S. Forest Service is seeking proposals that expand wood energy use and support responsible forest management. This news release says the service is also offering a Wood Energy Financial App to help business leaders see a positive bottom line for these efforts.

“USDA through the Forest Service is supporting development of wood energy projects that promote sound forest management, expand regional economies, and create new jobs,” said Agriculture Secretary Tom Vilsack. “These efforts, part of the Obama Administration’s ‘all of the above’ energy strategy, create opportunities for wood energy products to enter the marketplace.”

“Building stronger markets for innovative wood products supports sustainable forestry, reduces wildfire risk, and creates energy savings for rural America,” said Forest Service Chief Tom Tidwell.

Under the Forest Service’s Wood-to-Energy Grant program, about $2.8 million will be made available to help successful applicants complete the engineering design work needed to apply for public or private loans for construction and long-term financing of wood energy facilities. Another $1.7 million from the Statewide Wood Energy Team cooperative agreement program will help public-private teams make advancements in wood energy.

The Wood Energy Financial App that allows users to do a simple and quick analysis to see if wood energy is a viable alternative for their community or small business. You can dowmload the app here.

USDA Rural Development Supports Biofuel Investment

USDA Rural Business-Cooperative Service Administrator Lillian Salerno went on a three-state Midwest tour last week to highlight USDA investments that are helping expand business opportunities in the bio-economy, including biofuels.

usda-salerno“Creating jobs and expanding economic opportunity for rural small businesses are top priorities for the Obama Administration,” said Salerno, who visited companies in Iowa, Nebraska and South Dakota. “The new Farm Bill expands the potential for economic growth in rural America by maintaining momentum for the emerging bio-based industry and the more than 3,000 bio-based companies across the country.”

Salerno’s tour started with a visit to Quad County Corn Processors near Galva, Iowa where they are working on a process to turn corn kernel fibers into cellulosic ethanol and as a result boost the plant’s ethanol production. “It’s a co-op, so all the farmers around there have a vested interest in making this processing unit work,” she said. The company has received nearly $22 million in USDA Rural Development loan guarantees since it opened 13 years ago.

Salerno noted that the United States has the capacity to provide one billion tons of biomass per year by 2030. “This has a possibility of hundreds of thousands of jobs – actually 1.7 million estimated,” she said.

Prospective Plantings Down, But Corn Stocks High

ncga-logo-newThis year’s corn plantings are expected to be down this year, but growers say there will be plenty of stockpiles for all needs, including ethanol. The latest U.S. Department of Agriculture figures show that American farmers expect to plant 3.7 million fewer acres of corn this year, down four percent from 2013. But the National Corn Growers Association says, don’t worry, there are plenty of stocks going into the year, and it would still be the fifth-largest U.S. corn acreage planted.

“In 2013, U.S. farmers produced a record crop abundant enough to meet all needs and provide an ample carry over into 2014,” National Corn Growers Association President Martin Barbre said. “While it is still early in the season and many factors may change the reality on the ground as planting progresses, the public can rest assured that bountiful stockpiles and adequate plantings will ensure our corn security for the year to come.”

NCGA says the plantings will yield 13.37 billion bushels, and corn stocks stand at more than 7 billion bushels, up 30 percent from the same time last year.

IRFA: Strong Plantings Report Calls for Strong RFS

IowaRFAlogoExpected big plantings of corn and soybeans underscore the need for a strong Renewable Fuels Standard (RFS). New estimates from the U.S. Department of Agriculture (USDA) show a possible record amount of soybeans expected to be planted this year and the fifth largest corn acreage to be planted as well. The Iowa Renewable Fuels Association (IRFA) says these factors show why a strong and growing RFS is needed this year.

“The past eight years were prosperous for agriculture because the RFS was allowed to act as a sponge, soaking up additional corn and soybeans when needed,” stated IRFA Executive Director Monte Shaw. “The vast amount of corn and soybeans expected to be planted in 2014 demonstrates the importance of a strong and growing RFS. If the EPA’s proposal to essentially gut the RFS is allowed to become final, we could see huge carryovers, crop prices plummet below the cost of production, and family farms placed in jeopardy.”

Nearly 92 million acres is expected to be dedicated to corn this year and a record 81.5 million acres for soybeans, a six percent increase from last year.

Ag Secretary Takes Time on Ag Day for Ethanol

ace14-dc-vilsackThere are lots of activities for National Agriculture Day going on today in Washington DC, including a big celebration unveiling a statue of Dr. Norman Borlaug in the Capitol, but Agriculture Secretary Tom Vilsack still took time to meet with members of the American Coalition for Ethanol in town this week to visit Congressional offices

“The country needs a robust renewable fuel industry,” said Vilsack. “It provides choice for consumers and less cost gas at the pump. It helps to create hundreds of thousands of jobs which is important for the economy. It stabilizes farm income, it’s better for the environment, and it makes us a safer nation because we’re less reliant on others for our energy and fuel sources. So we need to continue to have a robust commitment to this industry, we need to expand it and grow it.” Brief interview with Secretary Vilsack after ACE visit

The secretary spoke to the more than 80 ethanol industry about what USDA is doing to achieve that goal, including finding creative ways to increase higher ethanol blend pumps, promoting exports of ethanol to Japan, India and China, and continuing to work towards encouraging use of higher blends in this country.

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Bulk of Advanced Biofuel Payments Go to Biodiesel

USDA Rural Development LogoThe biggest portion of money recently paid out for the U.S. Department of Agriculture’s Advanced Biofuel Payment Program went to biodiesel operations, indicating that green fuel is the leading advanced biofuel in the U.S. Biodiesel Magazine reports that about $40 million of the $60 million paid out went to biodiesel production. USDA officials say the entire $60 million announced last week shows the the Obama Administration’s commitment to support an “all-of-the-above” energy strategy.

“The Bioenergy Program for Advanced Biofuels is building the foundation for a clean energy economy and protecting our environment while making America less dependent on foreign and fossil fuels and increasing rural economic growth,” said Paco Valentin, USDA Rural Development State Director.

Through this program and others at USDA, the department is working to support the research, investment and infrastructure necessary to build a robust and lasting biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel. More than 300 producers in 47 states have received $279 million in payments since the program’s inception. It has supported the production of more than 4 billion gallons of advanced biofuel and the equivalent of more than 40 billion kilowatt hours of electric energy.

The funding was first established with the 2008 Farm Bill and reauthorized in the recently signed 2014 Farm Bill.