MN Ethanol Industry Contributed $2.3B in 2014

According to a new study, “Contribution of the Ethanol Industry to the Economy of Minnesota,” found that Minnesota’s ethanol industry accounted for $2.34 billion of the state’s gross domestic product (GDP) during 2014. The report was published by ABF Economics and found that the industry generated $7 billion in gross sales for state businesses and supported 18,630 full-time jobs. This in turn, cites the report, generated $1.74 billion in household income in Minnesota in 2014 as well as $132 million to state and local government tax rolls.

“This study by ABF Economics clearly shows how significant the ethanol industry is to Minnesota’s economy, especially in rural areas where it supports other industries,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association who commissioned the study.

Screen Shot 2015-05-07 at 4.19.05 PMFor the study, ABF Economics estimated the impact of the ethanol industry on Minnesota’s economy by applying expenditures by the relevant supplying industry to the final demand multipliers for value added output, earnings and employment.

“In this study, ABF used the IMPLAN (Impact Analysis for Planning) economic model to construct a model of the Minnesota economy including the sectors that support the ethanol industry, the links between them, and the level of economic activity,” noted John Urbanchuk, managing partner for ABF Economics, in the study.

The IMPLAN model evaluated the gross output, value added (GDP), household earnings and employment generated by the ethanol industry in 2014.

In 2014, the study notes, Minnesota’s ethanol industry spent $2.7 billion to produce 1.1 billion gallons of ethanol, 3.3 million tons of dried distiller’s grains (DDGs) and 184 million pounds of corn oil.The ethanol industry’s expenditure included corn, industrial chemicals, electricity, natural gas, water, labor and services such as maintenance, insurance and general overheads. Spending for these goods and services represented the purchase of output of other industries that operate in Minnesota, ABF Economics said. Continue reading

Bipartisan Bill Expands RVP Ethanol Waiver for 10%+

donnellyA bipartisan bill that increases the Reid vapor pressure (RVP) wavier for ethanol blends above 10 percent has been introduced in the U.S. Senate. Sen. Joe Donnelly (D-IN) was joined by Sens. Chuck Grassley (R-IA) and Deb Fischer (R-NE). The legislation would allow for more retailers to sell E15 gasoline/ethanol blended fuel year-round.

Donnelly said, “Biofuels like ethanol are renewable domestic energy sources, create more economic opportunities, and give consumers more options at the gas pump. This legislation would expand the RVP waiver for ethanol blends, increasing the market for ethanol producers in Indiana and around the country and making more clean fuels available to consumers year-round. We should be pursuing an all-in approach toward American energy production that includes ethanol and other biofuels because it helps our economy and increases our national security by reducing our dependence on foreign oil. I am proud my colleagues Senator Grassley and Senator Fischer are joining me in this bipartisan effort to reduce the burden of regulations on ethanol producers and consumers.”

Grassley said, “Consumers appreciate having choices, whether it’s at the grocery store or the fuel pump. Those of us who live in biofuels-producing states understand the appeal of cleaner, domestic, renewable fuels. The EPA should be consistent in the way it treats different fuel blends as a matter of fairness and to give consumers more options for fueling their vehicles. The EPA has never acted on its authority to grant a Reid vapor pressure waiver for E15. This bill proposes a legislative fix to fill the void.”

Tom Buis, Growth Energy CEO, said, “We applaud this strong bipartisan effort to remove the largest regulatory hurdle standing between consumers and access to a cleaner, less expensive and higher performing fuel. Senators Donnelly, Grassley and Fischer recognize that higher ethanol blends such as E15 benefit our environment, our economy and our rural communities, and are working together to bring those benefits to every American and move our nation forward. We commend them for taking the lead on this important issue in Congress.”

ncga-logo-newThe National Corn Growers Association (NCGA) also welcomed the news:

“We applaud Senators Donnelly, Grassley, and Fischer for their bipartisan efforts to increase the market for ethanol producers and give consumers more choices at the pump,” said NCGA President Chip Bowling. “June 1 is rapidly approaching, and we should ensure consumers will continue to have access to energy that is clean, renewable, and American-grown. We urge Congress to pass this legislation.”

Pacific Ethanol Produces Corn Oil at Madera Plant

Pacific Ethanol logoA West Coast ethanol producer is cashing in on a co-product of the green fuel’s prodcution. Pacific Ethanol has begun commercial production of corn oil using Valicor’s proprietary VFRAC™ corn oil recovery system at its Madera, California plant.

Neil Koehler, the company’s president and CEO, stated: “We are pleased to be producing corn oil at our Madera plant, which further diversifies our plant revenue streams and significantly improves operating income. In addition, plans are underway for corn oil production to begin at our Boardman, Oregon plant in the second quarter, at which time all four of Pacific Ethanol’s ethanol production facilities will be producing and benefitting from this high-value co-product.”

New Ad from ACE Uses ‘Power by People’ for RFS

Marietta1Looking to capitalize on President Obama’s visit to Watertown, South Dakota, the American Coalition for Ethanol (ACE) placed a full page advertisement in the May 8 Watertown Public Opinion. The ad uses the Power by People campaign which highlights the personal stories and persuasiveness of ACE’s grassroots members.

The ad features Marietta Lakness, a farmer, rancher, and investor in Glacial Lakes Energy, an ACE-member ethanol company that owns and operates facilities in Watertown and Mina, South Dakota. It focuses on how the RFS has supported Watertown’s economic growth and success. The text of the ad reads:

“Sometimes policy makers in DC get it right. Watertown, South Dakota is proof. So is Marietta Lakness. She raised a family in Hamlin County and has seen up close the challenges rural communities face. That’s why Marietta joined with her neighbors to build Glacial Lakes Energy, their very own home town biorefinery. Thanks to a policy called the Renewable Fuel Standard, today Watertown and places like it across the country produce clean renewable fuel for all Americans. The RFS also helped Marietta and 4,000 people like her who invested in Glacial Lakes Energy unleash a new chapter of hope and prosperity for the region. Today there’s a new market for her crops, new feed for her livestock, new fuel for her neighbors, and new dollars circulating throughout the region. It’s a jolt that’s plain to see all over town. Even though they live well outside the Beltway, the people of Watertown – folks like Marietta – are proof that good things come when Washington gets it right. And that’s worth keeping. Mr. President, help keep the RFS on track.”

You can read Marietta’s ethanol story here.

Georgia’s First E15 Stations to Open Friday

protecfuel1Georgia gets its first three E15 stations this week. To help celebrate the event at the Atlanta area stations, Protec Fuel will be running special “Happy Hour” pricing from 4-5 pm on Friday, May 8, at the Gulf Quick Stop Food Store, 855 S Cobb Dr SE, in Marietta.

88-octane E15 fuel costs less and can run in any 2001 and newer gas vehicle! Plus, it’s American-made, higher octane fuel that’s better for the environment. And, for the first time, it’s available in Georgia!

In addition, state officials will be on hand for the event, plus festivities will include 94.9 The Bull & Zac Brown Band tics giveaway, face painting, balloons, karaoke/bands, a moon walk for kiddos, and more!

E15 will also be available at the Gulf Sunflower Food Mart 1241 Eaton Road, Madison, Georgia and Gulf Food Mart 405 S. Walnut St., Greensboro Georgia.

New Iowa E15 Station Having $1.99/Gallon Event

kum-and-go1Not only does it burn green, but this coming Monday at Iowa’s newest E15 station, the higher blend of ethanol will save you some green. The Kum & Go in Windsor Heights near Des Moines will sell E15 for $1.99 per gallon from 10:00 AM to 2:00 PM on Monday, May 11. This news release from the Iowa Renewable Fuels Association (IRFA) says the promotion also coincides with Kum & Go’s announcement last week that the company plans to add E15 to an additional 65 locations in Iowa and six other states over the next two years.

“We have a strong tradition in our company to implement sustainability within our business and at our locations. From our 100 LEED-certified stores, to our selection of alternative fuels, E15 was a natural addition to our fuel offering,” stated Kum & Go Vice President of Fuels Jim Pirolli. “Having E15 in our portfolio allows Kum & Go to offer our customers a quality product at a great value.”

“Motorists have been clamoring for wider availability of E15, and we applaud Kum & Go for providing Iowans with yet another low-cost, cleaner-burning fueling option,” stated IRFA Managing Director Lucy Norton. “E15 is the most extensively tested fuel in history, is safe for use in all 2001 and newer vehicles, and will be priced at a great money-saving discount through this special promotion. That’s a win-win-win for Iowa’s motorists.”

“The American farmer is a backbone of the renewable fuels industry. Thanks to partners like Kum & Go, Iowans can fill up with more American-grown fuels like E15 and E85 that are better for our environment, reduce our dependence on foreign oil, and create new Iowa jobs,” stated Iowa Corn Promotion Board Director of Marketing and Communications Shannon Textor. “E15 is five percent more Iowa-grown fuel that supports Iowa’s farmers.”

The Kum & Go Windsor Heights store is located at 7229 University Avenue.

FEW Set to Break Records

The International Fuel Ethanol Workshop & Expo (FEW), is taking place June 1-4, 2015 in Minneapolis, Minnesota and is set to have the largest number of ethanol producers ever FEW14-color-web-NoYeargathered at an industry event with more than 600 producers. During the course of the event, they’ll discuss issues categorized into four tracks: Track 1: Production and Operations; Track 2: Leadership and Financial Management; Track 3: Coproducts and Product. Diversification; and Track 4: Cellulosic and Advanced Ethanol.

BBI Marketing Director John Nelson notes that the event will “create an unprecedented opportunity for industry supplier and supporters to network with ethanol producers and share their products or services.” He also said they are attendees registered from 25 countries. Registration is still open.

There are 194 operational ethanol plants in the U.S. today producing more than 15 million gallons of ethanol per year including several advanced ethanol production facilities.

energy.agwired.com will be onsite covering this event with special thanks from our sponsor Novozymes.

DDGS Exports to China Returning to Normal

Exports of U.S. distillers dried grains with solubles (DDGS) are starting to return to normal levels, according to the latest numbers for March.

Patriot Renewable Fuels DDGsThe Renewable Fuels Association reports that exports of the animal feed ethanol co-product rose in March for the fourth consecutive month, at 923,515 metric tons (mt), up 15% from February, with half of those shipments going to China. Exports of DDGS to China have been increasing this year after falling off last year due to a biotech trait issue. If normal shipments to China resume on an ongoing basis, 2015 theoretically could see total exports reach the 11 million mt mark. Mexico, Canada, Vietnam, and Thailand account for most of the remaining global market.

U.S. exports of ethanol in March were down slightly from February at 83.8 million gallons (mg), but that still represents the third-highest monthly volume in the last 12 months. Brazil and Canada accounted for half of total U.S. ethanol exports in March, followed by Oman and South Korea. The Netherlands, Tunisia and Nigeria were other key destinations in March.

Brazil Ethanol Group Moves Summit Dates

unica1A group representing sugarcane ethanol producers in Brazil is rescheduling its biennial meeting. The Union of Sugar Cane Industry Association (UNICA) has moved its Ethanol Summit 2015 to July 6-7, 2015 at the Golden Hall of World Trade Center to accomodate Brazilian President Dilma Rousseff, who will be in Washington, D.C., on the original dates at the end of June.

The meeting brings together businessmen from various levels of government authorities, researchers, investors, suppliers and academics in Brazil and abroad.They are expected about 1,500 participants to follow nearly a hundred lectures, presentations, discussions and debates that will take place in large plenary sessions, thematic panels and opening and closing ceremonies as well as parallel events.

“This is a significant year for the sugarcane industry. Key decisions and very important measures that can contribute to a better future of agribusiness, are underway, both in Brazil and on the world stage, increasing the importance of the Summit as the main forum for discussions on the most relevant topics for the energies and products renewable coming from sugarcane “said the president of UNICA, Elizabeth Farina.

Registration for the event opens in the coming days.

Biofuels Leaders Ask President for Meeting

A dozen organizations and companies representing biofuels interests this week sent a letter to President Obama asking for a meeting on proposed rules under the Renewable Fuel Standard (RFS) due to come out next month.

fuels-americaThe letter comes on the heels of an analysis from the Biotechnology Industry Organization (BIO) showing how EPA delays in setting volume requirements (RVOs) under the RFS have resulted in the loss of some $13.7 billion in investment in advanced biofuels like cellulosic ethanol. The letter was signed by BIO, the Renewable Fuels Association, Growth Energy, Advanced Ethanol Coalition, National Corn Growers Association, Association of Equipment Manufacturers, POET, DSM, Novozymes, and Abengoa.

“The EPA’s proposal in 2013 was an enormous disservice to you and your legacy, Mr. President,” the letter states. “Prior to the release of that proposal, we had asked to meet with the EPA, but were rebuffed. We would like to work with you to ensure that the mistake is not repeated.”

In addition to the letter and the analysis from BIO, the Fuels America coalition is running digital ads this week on Politico’s Environment & Energy section that say, “Will the next generation of biofuels be created in the United States or China? It’s up to you, Mr. President. Support the Renewable Fuel Standard.”