Export Opportunities for Ethanol and DDGs

U.S. exports of ethanol totaled 59.9 million gallons (mg) in June, up 13% from the seven-month low in May, according to a Renewable Fuels Association (RFA) analysis of government data, and the opportunities are expanding.

ace14-geneThat was the topic for the last session at the American Coalition for Ethanol conference this week in Minneapolis and one of the speakers was Gene Griffith of Patriot Renewable Fuels in Annawan, Illinois.

“U.S. ethanol is the cheapest motor fuel in the world, it’s needed and it can be blended in any country for clean air,” said Griffith, noting that the industry will continue to grow and produce more than we need in the country. “We must develop these worldwide markets. It’s not just Brazil, it’s not just the United States, there’s a lot of countries around the world that need our DDGs and our low cost, clean burning fuel.”

Listen to Gene explain in detail here: Gene Griffith, Patriot Holdings, on ethanol exports

ace14-chsClayton Haupt with CHS Renewable Fuels Marketing discussed China import issues with distillers grains, noting that the game has changed considerably since he was asked to do this talk in June.

July 24, it was announced you have to have a government stamp that has to say (DDGS imports are) clean of all GMO traits not approved in China,” said Haupt, noting that the U.S. Grains Council responded that simply cannot be done. “You’re kind of put in an environment today that you’re probably not going into China.”

Listen to Haupt’s presentation here: Clayton Haupt, CHS Renewable Fuels Marketing

ace14-ecoenergyLastly, Chad Martin with Eco-Energy wrapped up with an overall look at export markets.

“Ethanol demand is no longer driven solely by the U.S. blender,” said Martin. “That’s obviously a good thing but it comes with some complexities in terms of import quotas, different specs, different market factors to be considered…things our industry has never really had to focus on until we started exporting both distillers grains and ethanol.” Chad Martin, Eco-Energy

27th Annual Ethanol Conference photo album

Hawaii Funds BioTork Advanced Biofuel Technology

The Hawaii Department of Budget and Finance is now authorized to issue special purpose revenue bonds not exceeding $50,000,000 for the purpose of planning, permitting, designing, construction, equipping, and operating BioTork Hawaii LLC’s commercial facilities. Recently, the state passed legislation to assist in funding a zero waste project that converts crops, crop residues, dedicated energy crops and ag waste into sustainable biofuels and co-products.

According to BioTork, their bioconversion development efforts in Hawaii date back to 2010 when it began research of its technology. The company uses a “proprietary evolutionary optimization approach,” and “enhances the performance of non-GMO microorganisms under real-world industrial conditions in an unrivaled cost efficient way”. The conversion process takes a few days to cycle in a heterotrophic environment, meaning no sunlight is needed, to create oil for biofuel and high-protein feed.

bioTork“The passage of this legislation greatly enhances BioTork’s efforts in Hawaii. It demonstrates the attractiveness and the potential of our technology, which is focused on the bioconversion of agricultural waste, into a higher value product,” said Eudes de Crecy, CEO of BioTork.

Basing its efforts on the requirements of the “Hawaii Zero Waste Program,” BioTork entered into collaboration with the Daniel K. Inouye Pacific Basin Agricultural Research Center. Since that time Hawaii committed $4,800,000 in research, development and capital improvement funding through a contract with DKI-PBARC to focus on BioTork’s evolution technology. Some of these funds have been committed through the state’s barrel tax allocations, which target energy and food security initiatives. Other funds have been appropriated through legislative capital improvement program allocations.

“At BioTork we firmly believe that in many circumstances there is much more value in converting carbon rich organic biomass into high value products, than just burning it, burying it or using it as fertilizer in the field. The model we pursue is to breed the good microbe candidates to specifically address the locally available biomass sources, using natural methods and to create much more value to the local and global economy,” added Tom Lyons, CSO of BioTork.

With the additional support of special purpose revenue bond funding, BioTork Hawaii LLC will be able to fuel the third step of its development program. This would involve scaling up to build and operate commercial facilities that will have the capacity to convert agricultural crops and by-products such as albizia, sweet potatoes, papaya, sugarcane bagasse, glycerol and molasses to biofuels and high-protein feed.

BioEnergy Bytes

  • BioEnergyBytesDFThe 6th Annual OPIS RFS2, RINs & Biodiesel Forum is being held October 16-17, 2014 in Chicago, Illinois. Sponsored by OPIS, the company notes those impacted by the RFS are frustrated with EPA’s recent announcement of extending the 2013 RFS deadline a third time — this only adds to the aggravation of the already late 2014 final targets. The event will teach attendees what they need to know to stay in compliance and avoid fines of up to $37,500 per day per violation from our top experts. Other topics include comprehending the complexities of EPA’s new QAP program, staying on top of the latest RVOs and creating a rock-solid compliance strategy.
  • Bond Dickinson’s Planning & Infrastructure team has advised on two successful offshore wind farm consents this summer, the latest of which represents its sixth Development Consent Order. The firm advised E.ON Climate & Renewables on the development of the Rampion offshore wind farm off the Sussex coast together with the underground onshore cable route and a new substation near the existing substation at Bolney, Mid Sussex. The development was granted consent to go ahead on July 16, 2014 by Ed Davey, Secretary of State for Energy and Climate Change. This follows the consent granted for East Anglia ONE in June, the first of Bond Dickinson’s successful offshore wind farm consents this summer.
  • Lumos Solar, a Boulder, Colorado based design-centric solar product company, has announced that TD Bank has chosen Lumos LSX frameless solar modules to cover their retail drive-thru structures. These structures provide essential shade and protection from the elements for bank customers as well as producing clean, renewable energy, helping TD Bank meet their sustainability goals.
  • ContourGlobal, an international power generation company, has announced that it has acquired an additional 122.6 MW of installed wind capacity in Brazil through a transaction with Casa dos Ventos. The transaction expands ContourGlobal’s operations in the attractive Chapada do Piaui wind complex located in Brazil’s windy northeast adding a new 59.2 MW fully contracted wind project (Chapada III) located adjacent to its existing Chapada I and Chapada II wind farms. Additionally, ContourGlobal has acquired Casa dos Ventos’s minority interest of 5% in Chapada II and will acquire its minority interest of 15% of Chapada I as well as its minority interest of 15% in the 160 MW Asa Branca wind farm that ContourGlobal placed into operation in September 2013.

Boeing & SAA Collborate on BioJet Fuel From Tobacco

Boeing, South African Airways (SAA) and SkyNRG are partnering together to develop aviation biofuel from a specific type of tobacco plant. SkyNRG is currently expanding its production of Solaris, an energy crop hybrid derived from the tobacco plant. Pilot farming of the plant, which is effectively nicotine-free, is underway in South Africa with to end goal of producing advanced biojet fuel from the seeds. As the program expands, Boeing expects emerging technologies to increase South Africa’s aviation biofuel production from the rest of the plant.

The project is an effort to expand the support of South Africa’s goals for improved public health along with economic and rural development.

Tobacco Photos“It’s an honor for Boeing to work with South African Airways on a pioneering project to make sustainable jet fuel from an energy-rich tobacco plant,” said J. Miguel Santos, managing director for Africa, Boeing International. “South Africa is leading efforts to commercialize a valuable new source of biofuel that can further reduce aviation’s environmental footprint and advance the region’s economy.”

In October 2013, Boeing and SAA agreed they would work together to develop a sustainable aviation biofuel supply chain in Southern Africa. As part of that effort, they are working with the Roundtable on Sustainable Biomaterials to position farmers with small plots of land to grow biofuel feedstocks that provide socioeconomic value to communities without harming food supplies, fresh water or land use.

Ian Cruickshank, South African Airways Group Environmental Affairs Specialist said of the expanded project, “By using hybrid tobacco, we can leverage knowledge of tobacco growers in South Africa to grow a marketable biofuel crop without encouraging smoking. This is another way that SAA and Boeing are driving development of sustainable biofuel while enhancing our region’s economic opportunity.”

“We strongly believe in the potential of successfully rolling out Solaris in the Southern African region to power sustainable fuels that are also affordable,” added Maarten van Dijk, Chief Technology Officer, SkyNRG.

Getting Farm News You Can Use

New Holland ZimmPollOur latest ZimmPoll asked the question, “I prefer to get my farm news from:”

I am sure many of the younger generation feel real magazines and radio are a little out dated, but it is clear that they still serve a purpose when it comes to getting news that is relevant to our industry. Computers seem to easily take the the lead when it comes to a resource for farm news. Do you think we will see the day when computers seem dated? I might still be considered the ‘younger generation’ but I would rather listen to the radio any day.

Here are the poll results:

  • Magazine – 14%
  • Mobile Phone – 24%
  • Radio – 15%
  • Tablet – 10%
  • Computer – 34%
  • Other – 3%

Our new ZimmPoll is now live and asks the question, What’s your favorite way to eat peanut butter?

Peanut butter is quite diverse making it a staple in many households. I personally prefer a peanut butter cookie over anything else. Chuck and Cindy have covered the Southern Peanut Growers Conference for seven years. The three-day event provides farmers an opportunity to learn more about the industry and important issues. You can check out photos and audio from this years event here.

Algae, Power Tech Companies Collaborate for Biodiesel

RAEA company in the algae business is teaming up with a giant in power technology to produce algae for biodiesel at a commercial level. Tennessee-based Renewable Algal Energy, LLC (RAE) and Swiss-based ABB, a leader in power and automation technology, will collaborate to use ABB’s technology for control and efficiency of algae harvesting and conversion process.

“We are honored that ABB has selected to work with RAE in the development of infrastructure for RAE’s unique technology in complete integrated algal production systems,” stated Jeffrey S. Kanel, Ph.D. and CEO of RAE. “To have the global leader in power and automation technologies as a strategic partner is a huge endorsement of RAE’s ability to commercialize our technology in the creation of sustainable algal products.”

RAE will produce the equipment that harvest and extract algae and its co-products, including oil, for renewable fuels, as well as proteins and carotenoids for animal feed and nutritional supplements. The scalable systems are designed for medium to large scale algae farms, up to 2,000 hectares (10,000 square meters). ABB will supply 800xA control systems, instrumentation, low voltage electrical equipment and variable speed drives that will help those integrated algal production systems operate efficiently and reliably. In addition to process control, 800xA provides remote access to the base control room on each algae farm, so that multiple locations can be viewed and managed by one operator. The variable speed drives help the pumps and motors operate at their peak energy efficiency, using up to 10% less electricity.

Officials from both companies say this will make the harvesting of oil from algae, as well as other products for nutraceuticals and animal nutrition, a much more efficient process, one of the biggest hurdles algae growers have faced in trying to make algae oil commercially viable for biodiesel production.

Florida Biodiesel Brings Green Fuel to Africa

Florida-Biodiesel1Biodiesel-brewing equipment maker Florida Biodiesel, Inc. is sending another one of its biodiesel processors to Africa. Back in April, we told you about the company’s B-500 biodiesel plant was sold to the Lorymat Corporation in the Ivory Coast. Now, Florida Biodiesel has sold a B-60 biodiesel plant sale to Avandith Energy in Lagos, Nigeria.

Avandith Energy has chosen the B-60 Biodiesel processor for their pilot transesterification facility. The B-60 Biodiesel plant is economical to operate and will allow Avandith Energy to safely produce 4 batches of Biodiesel each 24 hours. The B-60 will also be used as a hands-on educational tool to show students and government agencies how to make renewable energy. “We will process Jatropha oil collected locally into Biodiesel fuel,” says Oladunjoye Waleola, of Avandith Energy. “The B-60 is very user friendly, has a low carbon footprint, and will economically produce Biodiesel for us.”

Florida Biodiesel has been producing biodiesel making equipment since 2006 and touts its safety external heat exchanger, cyclonic mixer, methanol recovery module, and the AUTOBIO biodiesel plant automation system technologies.

Ethanol Plant Innovators

Four ethanol producers who are innovating plants through new process and product technology took the podium at the American Coalition for Ethanol conference this week to talk about what they are doing.

ace14-ronFirst up was ACE president Ron Alverson of Dakota Ethanol who talked about the importance of carbon, particularly the California Low Carbon Fuel Standard (LCFS) and how it impacts ethanol production. Alverson is a corn farmer in South Dakota and he discussed how carbon intensity ratings for corn ethanol are improving and will continue to improve down the road. Ron Alverson, Dakota Ethanol

ace14-baker-adkinsRay Baker, general manager of Adkins Energy in northwest Illinois, who talked about the new biodiesel plant they are building to co-locate with their 50 million gallon ethanol plant and use corn oil as a feedstock. “Having corn oil as your main feedstock gives you a competitive advantage,” he said.
Ray Baker, Adkins Energy

ace14-erhart-prairieMike Erhart, CEO of Prairie Horizon Agri Energy in Kansas, says he runs a biorefinery, not an ethanol plant. “I think ethanol plant is antiquated,” he said. “It’s now time that we become a biorefinery and start touting that.” Erhart also talked about why his plant is producing renewable diesel. Mike Erhart, Prairie Horizon Agri Energy

ace14-delayneDelayne Johnson, Quad County Corn Processors, has the distinction of producing the very first gallons of cellulosic ethanol, just about a month ago. He talked about his plant being the first to use Syngenta Enogen corn and efficiencies they have implemented in the production process.
Delayne Johnson, Quad County Corn Processors

27th Annual Ethanol Conference photo album

BioEnergy Bytes

  • BioEnergyBytesDFPattern Energy Group LP has acquired the Logan’s Gap wind project from Pioneer Green Energy. Logan’s Gap is a 200 megawatt (MW) wind project to be built in Comanche County, Texas. As the developer of the project, Pioneer Green Energy began work of a significant nature in 2013 and executed a 10-year power purchase agreement (PPA) with Wal-Mart Stores, Inc. for approximately 60% of the project’s expected production.
  • Pacific Energy Solutions (PES), an energy project development company specializing in renewable technologies, has entered into a binding contract with the U.S. Navy to supply approximately 30,400 MWh of electricity annually to the Navy for use by Navy, Marine Corps and Air Force activities in the State of Hawaii. PES will supply this electricity to the Navy over a 25-year Power Purchase Agreement term. A groundbreaking ceremony was conducted on July 24, 2014 at Joint Base Pearl Harbor-Hickam. The ceremony was presided over by the Secretary of the Navy, the Honorable Ray Mabus, who was joined by the Governor of the State of Hawaii, Neil Abercrombie.
  • Sparq, Inc. a company focused on municipal and utility scale renewable energy, is now offering it’s solar energy service to residential customers beginning August 1, 2014. Sparq’s new Residential Solar Service will make it possible for homeowners across the Southwest to save thousands on their utility bills. Sparq’s existing partnership in the utility market will be expanded with Lightway Green New Energy Co. to provide high-standard solar panels and equipment designed specifically for residential applications.
  • From 2014 to 2035, worldwide gas consumption by the road transportation sector will fall 4 percent, the report concludes according to a new report, “Transportation Forecast: Global Fuel Consumption,” from Navigant Research. Gasoline consumption for road transportation will continue to rise through 2021, reaching 367.3 billion gallons a year, but then start to fall thereafter, declining to 348.1 billion gallons a year in 2035.

SG Preston Announces Renewable Diesel Project

SG Preston (SGP) has announced the planned development of a 120 million gallon renewable diesel facility in Lawrence County, Ohio. The $400 million bioenergy facility will be the world’s largest producer of renewable diesel when finished in 2017 according to SGP.

SG Preston logoThe company said a key component of the facility’s development is the licensing of their advanced process technology that has been successfully proven at commercial scale at other locations. According to SGP, this advanced technology efficiently converts waste feedstock into renewable diesel – chemically identical to petroleum-based diesel- and can be used as a drop-in replacement in vehicles. In addition, SGP said this technology allows them to customize its biofuel offering by adjusting fuel characteristics to meet various operating environments (extreme cold or heat) of the end user without diluting energy content in the GHG reduced fuel blend.

“For SG Preston, this is an important milestone and part of a larger vision of partnering with leading, global refining technology partners and local communities to develop a portfolio of renewable diesel and renewable jet fuel refineries targeting 1.2 billion gallons per year, or 20% of the federal RFS2 biomass-based mandate for biofuels,” said R. Delbert LeTang, CEO of SG Preston. “We see a blue sky opportunity to deliver customized, renewable fuel to government, the petroleum industry and other private users throughout the United States and we look forward to partnering with the people of southern Ohio to build new industries and new economic opportunity.”

Other partners in the project include the Lawrence County Economic Development Council, which is investing 62 acres in land and other incentives. The Appalachian Partnership for Economic Growth and JobsOhio were also instrumental in securing the investment and technology to play a role in the future of southern Ohio.
Pre-engineering studies for the facility are expected to begin in September 2014, with commercial operations targeted for 2017.

Bill Dingus, executive director of Lawrence County Economic Development Council, added, “This project will be of significant economic importance to southern Ohio, bringing long-term employment and income to the region. We look forward to supporting the development of new energy technologies, and passing on the benefits of commerce and cleaner air to local residents.”

UC Riverside Researchers Enhance Biofuel Yields

University of California, Riverside researchers have developed a versatile, virtually non-toxic and efficient way to convert raw ag and forest residues along with other plant matter into biofuels and biochemicals. Professor Charles E. Wyman is leading the research team and their patent-pending method coined Co-solvent Enhanced Lignocellulosic Fractionation (CELF) and they believe they are another step closer to solving the goal of producing biofuels and biochemicals from biomass and high enough yields and low enough costs to become viable.

“Real estate is about location, location, location,” said Wyman, the Ford Motor Company Chair in Environmental Engineering at UC Riverside’s Center for Environmental Research and Technology (CE-CERT). “Successful commercialization of biofuels technology is about yield, yield, yield, and we obtained great yields with this novel technology.”

Charles Cai UC RiversideThe key to the technology, according to Wyman, is using tetrahydrofuran (THF) as a co-solvent to aid in the breakdown of raw biomass feedstocks to produce valuable primary and secondary fuel precursors at high yields at moderate temperatures. These fuel precursors can then be converted into ethanol, chemicals or drop-in fuels. Drop-in fuels have similar properties to conventional gasoline, jet, and diesel fuels and can be used without significant changes to vehicles or current transportation infrastructure.

Compared to other available biomass solvents, THF is well-suited for this application because it mixes homogenously with water, has a low boiling point (66 degrees Celsius) to allow for easy recovery, and can be regenerated as an end product of the process, explained Charles M. Cai, a Ph.D. student working with Wyman.

The research, focused on lignin, was recently published in Green Chemistry: “Coupling metal halides with a co-solvent to produce furfural and 5-HMF at high yields directly from lignocellulosic biomass as an integrated biofuels strategy.”

MN Gubernatorial Candidates Differ on Biofuels

mn-flagAll politics is local, and how some local and regional elections this year could help determine the fate of biodiesel and ethanol for a much larger area. Case in point, this article from the St. Cloud (MN) Times looks at how the four Republicans vying for their party’s nomination to take on current Democratic Gov. Mark Dayton in November have differing views on biofuels as they go into the August 12 Republican primary in that state.

A Marshall resident and former state representative, [Marty] Siefert said the state has created thousands of jobs, and the state should not change the requirement that gasoline include 10 percent ethanol.

“I see this as the status quo for now,” he said, not jumping on a bandwagon to increase ethanol percentages.

For diesel, Seifert said, he can understand concerns about biodiesel gumming up fuel filters in cold weather. “Biodiesel mandates are not going to go up if I’m governor.”

Raised on a North Dakota farm and now a Maple Grove resident, [Kurt] Zellers said he wants to look into increasing the ethanol mandate to 15 percent but needs more information before fully supporting it.

At minimum, he said, he wants to keep existing mandates in place.

[Jeff] Johnson, who grew up in Detroit Lakes and lives in Plymouth, said he favors eliminating mandates from state law, including those affecting biofuels.

However, he added, he has been around government enough to know that the mandates cannot be eliminated right away.

“Government has created somewhat of a dependency,” Johnson said, adding that eliminating biofuel mandates is not a priority and that he would like to phase them out.

There is none of that waiting for [Orono businessman Scott] Honour.

“I would try to push away from mandates as quickly as possible,” Honour said. “My view is that the less government is trying to influence a free market, the better.”

So there you have it Minnesotans. Choose wisely when you go to the polls on August 12.

Camelina Researched for Biodiesel and Drop-in Fuel

camelinaResearchers at several universities are looking at the potential camelina has as a feedstock for biodiesel or even using the oil as a straight drop-in fuel. This news release from Kansas State University says Timothy Durrett, assistant professor of biochemistry and molecular biophysics at KSU, has joined researchers from Colorado State University, the University of Nebraska, Lincoln and the University of California, Davis, in using a $1.5 million joint U.S. Department of Agriculture and Department of Energy grant to see how to get the most out of a promising crop: Camelina sativa.

Camelina, a nonfood oilseed crop, can be a valuable biofuel crop because it can grow on poorer quality farmland and needs little irrigation and fertilizer. It also can be rotated with wheat, Durrett said.

“Camelina could give farmers an extra biofuel crop that wouldn’t be competing with food production,” Durrett said. “This research can add value to the local agricultural economy by creating an additional crop that could fit in with the crop rotation.”

The research will take advantage of the recently sequenced camelina genome. For the project, Durrett is improving camelina’s oil properties and by altering the plant’s biochemistry to make it capable of producing low-viscosity oil.

The article says developing a low-viscosity oil is crucial to improving biofuels and could allow camelina oil to be able to be dropped in as a fuel without any kind of chemical modification.

Collin Peterson Honored for Ethanol Support

ace14-merle-collinThe American Coalition for Ethanol meeting in Minneapolis this week honored Congressman Collin Peterson of Minnesota with its highest award for supporters of ethanol, the Merle Anderson award. Anderson himself presented Peterson with the award, as well as an ethanol lapel pin and five dollars for his campaign.

Peterson says ethanol has been great for agriculture and he continues to fight for it in Congress. “It’s just been a tremendous success story in agriculture because it’s changed the marketplace so farmers can get a decent price for their corn,” he said. “We do have our opponents and they are still working to undermine things,” he continued, noting that just last week Rep. Bob Goodlatte (R-VA) attempted to bring up a bill to get rid of the RFS. “They want to go back to $1.85 corn and I tell them if they are successful they will rue the day because nobody can grow corn for $1.85.” Peterson says the only way farmers survived when prices were $1.85 a bushel was because of the government subsidy “and that’s gone.”

Peterson remains hopeful that the EPA will eventually come out with a better final rule on the 2014 volume obligations for the RFS. “I think the fact that they delayed this for now a third time shows they are listening,” he said. “It appears to me that they realize they made a mistake here and they’re trying to figure out how to undo it.” He thinks it could be next year before the rule is final, but “a delayed decision is better than a bad decision.” Interview with Rep. Collin Peterson (D-MN) at ACE Conference

27th Annual Ethanol Conference photo album

RFA Pumping up Ethanol for Motorcycles

sturgis-14-fuelThe Renewable Fuels Association is pumped up to provide some free 10% ethanol for motorcyclists attending the 74th annual Sturgis Motorcycle Rally this week.

RFA set up this morning for the Free Fuel Happy Hours taking place from 1–4 pm today through Thursday. This is the sixth year that RFA has had a presence at the legendary motorcycle event and the main meeting place at the Buffalo Chip campground.

On hand to educate the bikers and pump them up with free fuel is RFA director of market development Robert White, who took part in the Legends Ride on Monday morning at the Rally, riding his flex-fuel Harley during the week to promote the benefits of ethanol. RFA sponsored the seventh annual charity ride, which begins in Deadwood, S.D., with the proceeds going to benefit charities in the Black Hills region of South Dakota, including the Black Hills Special Olympics.

There’s a lot going on at the rally, but not much in the way of internet access, so we’ll have more from Sturgis when we get wired!

See all the photos from the rally and RFA’s involvement in the 2014 Sturgis Motorcycle Rally Photo Album