Refiners to Try Syngenta’s Bio-Engineered Ethanol Corn

John Davis

Two ethanol makers will be trying Syngenta’s Enogen® grain… corn that is bio-engineered to allow ethanol production to be more efficient, cost effective and better for the environment. This Syngenta news release says Golden Grain Energy (GGE) of Iowa and Siouxland Ethanol of Nebraska agreed to run three-month trials.

Enogen grain is the first genetically engineered output trait in corn specifically for the ethanol industry. Enogen corn expresses the alpha amylase enzyme necessary for dry grind ethanol production directly in the endosperm of the grain. This breakthrough technology eliminates the need to add liquid amylase and can lead to dramatic increases in throughput while potentially reducing costs in energy, gas and water usage.

“We’re glad to be partnering with these plants and we’re excited about the improved efficiency Enogen technology can deliver,” said David Witherspoon, head of renewable fuels with Syngenta. “We’re looking forward to working closely with each plant during the trial to demonstrate the value Enogen technology can add to their operation and their community.”

The trials are to begin next spring. If it works out, growers will be paid a premium for each bushel of Enogen corn delivered to the plants.

corn, Ethanol, Ethanol News

Do The Math

Joanna Schroeder

Recently the American Coalition for Ethanol (ACE) celebrated its 25th Annual Ethanol Conference. One of the things ACE knew 25 years ago was that they needed to work with the people who distributed fuel. Ron Lamberty, Senior Vice President and guru of market development, was one of those retailers with whom ACE worked. Twelve years later, Lamberty’s “gig” became full time.

During some remarks he gave before a question and answer session, Lamberty noted that what the industry has to do is what is right for retailers because they are the ones who eventually will make ethanol successful.

“A program that we used to do and are heading back to now is called “Do the Math”. We’d go to petroleum shows and we’d try to explain to them the octane value, the blending value and the price value of E10,” Lamberty reminisced. “Interestingly enough we’re kind of back in that same realm with E15.”

ACE has been and continues to educate mechanics and station owners about ethanol. Today ACE has plans to expand the effort. They also continue to work with the BYO program that helps station owners install pumps to sell ethanol.

Lamberty believes that E15 is going to be a good driver for the ethanol industry. “It’s going to be something that convinces petroleum marketers to spend the money on the pump because the math works for them. We have to be able to show that this is a value proposition for retailers.” And it is he says.

As oil companies sell their stations, the number of single station owners is increasing. Lamberty said these are the type of owners who like ethanol because it helps their business. They make more money and its something they can sell that they’re competitors are not selling. As a result, ACE continues to reach out to these station owners to educate them about ethanol.

In closing, Lamberty reminded everyone that ethanol is the right thing to do. “We’re going to continue to work to find more people to sell more ethanol.”

To listen to Ron Lamberty’s full remarks, click here: Do The Math

ACE, Audio, conferences, Ethanol

World Ethanol Market Projected to Reach 27.7B Gallons

Joanna Schroeder

The world ethanol market is projected to reach 27.7 billion gallons by the end of 2012 according to a new report, “Biofuels – A Global Strategic Business Report,” conducted by Global Industry Analysts. The growth, says the report, is due to skyrocketing crude prices, continued concerns over environmental pollution and the switch to biofuels. In addition, worldwide emission standards, biofuels subsidies and tax incentives have also had a positive impact on growth.

In the U.S., growth is being fostered by the goal of increasing domestic fuel production along with attention on the lowering of carbon emissions. Other aids to growth in the U.S., according to the report, is the increased purchases of flex-fuel vehicles (FFVs) and the approval and sale of E15 for vehicles produce in 2011 or newer.

Today, the U.S. and Brazil (as well as South America) dominate production with 50 percent of world sugarcane produced going into the production of ethanol. Together, South America and the U.S. produced 66.5 percent of total volume sales in 2008 with 90 percent of ethanol demand in South America coming from Brazil. Ethanol consumption in Brazil is expected to reach 7.45 billion gallons by 2015. Sales of ethanol in Canada, one of the fastest growing markets worldwide, are expected to rise by approximately 208.25 million gallons between the period 2008 to 2012. The report predicts that markets to watch are India and China.

Globally, volume consumption of ethanol is estimated to grow by about 7,597 million gallons between the period 2008 to 2012. Asia-Pacific dominates the global food & beverage end-use market with a 64.2% share estimated in the year 2008. The solvent end-use market in the United States is projected to consume over 230 million gallons of ethanol by the year 2015. In Europe, Germany and France collectively account for 35.5% of the regional ethanol market as estimated in 2008.

All the major global ethanol players are featured in the report along with all the major biodiesel players around the world. The report provides a comprehensive review of market trends, driver, issues, and challenges in the biofuels global market. It also discusses climates in key regional markets. Also provided in the report is an enumeration of recent mergers, acquisitions, and other strategic industry activities.

Biodiesel, Ethanol, International, Research

UNL Team to Use E85 in SAE Competition

Joanna Schroeder

University racing teams participating in the Formula SAE Collegiate design and performance racing series have the opportunity to develop race cars with alternative fuels. The University of Nebraska-Lincoln team has chosen to compete in the 2013 series using E85 racing fuel. Ten of the 81 teams will be competing with E85 racing fuel. The student designed Formula racing type vehicles will compete in a variety of categories including design, performance, acceleration, and endurance.

“After evaluating several fuel options we were confident that E85 would provide the high octane performance necessary to be competitive,” said Jonah Knepper, a member of the University of Nebraska-Lincoln Husker Motorsports team. “We initially calibrated our competition engine on high octane gasoline. When we fine-tuned the calibration with E85 we gained a ten percent increase in power output. With additional design and tuning we think we can get another ten percent power output. That is a huge advantage in racing competition,” said Knepper.

E85 has an octane rating of 100 and as a result, Matthew Kalus, one of the team engineers said when they calibrated the 600 cc engine it increased its power output while at the same time cooling the engine. Brazilian racing teams have been using E85 racing fuel and both IndyCar and NASCAR also compete with ethanol blends.

The 2013 Formula SAE competition will be held in Lincoln next year.  Last year the University of Kansas secured first place in the Overall competition as well as the Endurance competition using E85 racing fuel. In addition, the University of Wisconsin won the top spot in the Fuel Economy category using E85. The UNL team is confident they’ll have a chance at the top spot using E85 racing fuel along with some innovative engineering.

E85, Ethanol

MU Grant Studies Biomass Growth on Marginal Lands

Joanna Schroeder

University of Missouri (MU) researchers have received a $5.4 million grant from the Department of Energy (DOE) to continue its studies on how non-food biofuel crops grow in marginal land along floodplains. This is an area where crops cannot typically thrive.  he project is part of a $125 million international project to study how use marginal lands to to grow biofuel crops for advanced biofuels.

“In the 10 states along the Missouri and Mississippi Rivers, 100 million acres of marginalized agricultural land is unused or underutilized often due to frequent flooding,” said Shibu Jose, H.E. Garrett Endowed Professor in the School of Natural Resources and director of the MU Center for Agroforestry. “If farmers can plant just 10 percent of marginal floodplain land with crops designated for use in biofuels, we can produce 6 to 8 billion gallons of liquid fuel annually. Planting this land with crops designated for biofuels would have little to no effect on the food supply.”

Several trials are being planned including one that will test 15 types of biomass sorghum and 15 types of switchgrass. Both crops need less water than traditional crops and less care including less fertilizer. Other advantages of these crops is that the root system reduces erosion and water pollution by filtering water as it runs into streams and rivers. Ultimately, the team will identify which varieties grow best under flood and drought conditions and which crops grow best in various soil types.

Many energy producers are looking at biomass as a biofuel and electricity source. Biomass can be converted into pellets and then the pellets can be burned for electricity or produced into biofuels.  Jose envisions a network of farmers producing biomass and shipping it to local pellet-producers, who will ship the pellets to refineries.

“We need to build a network of pellet producers because transportation costs need to be low enough that farmers can still profit off of growing crops for biofuel,” said Jose.“With the smaller condensed pellets, we can transport a great amount of energy at a low cost.”

advanced biofuels, biomass, Electricity, Research

KiOR Receives EPA Renewable Diesel Registration

John Davis

Cellulosic biofuel maker KiOR, Inc. has received Part 79 registration for its Renewable Diesel Blendstock 5 by the EPA. The registration, required by manufacturers of motor vehicle fuels by the EPA, must be completed prior to the sale of the product.

“Part 79 registration for our cellulosic diesel marks another important milestone for KiOR and the renewable fuels industry,” said Fred Cannon, KiOR’s President and Chief Executive Officer. “The receipt of the Part 79 registrations for our cellulosic gasoline and diesel from EPA coincides perfectly with the start-up of our first production facility in Columbus, Mississippi next month.

“With registration for both our cellulosic gasoline and diesel completed, KiOR now has a clear path to market to provide renewable cellulosic fuels for American cars and trucks during the fourth quarter of this year,” Mr. Cannon added.”

KiOR’s proprietary two-step technology converts non-food biomass into cellulosic gasoline, diesel and fuel oil.

Biodiesel, biofuels, Cellulosic

Western New York Energy Buys ICM Milling Technology

John Davis

A New York ethanol producer has bought a milling system purported to increase plant efficiency while maintaining throughput. This news release says Western New York Energy bought ICM’s Selective Milling Technology (SMT)™, including the license fee, equipment and installation of ICM’s platform technology.

Mike Sawyer, Executive Vice President and Chief Financial Officer of WNYE stated, “As a locally-owned company, we strive every day to fulfill our mission of developing the full potential of Western New York’s renewable energy resources, utilizing industry best practices, and achieving the highest ethical standards to work with our community and business partners.”

ICM President Chris Mitchell said, “We’re thrilled to continue our collaborative relationship with WNYE by delivering innovative products from our platform technology package.”

Western New York Energy also bought ICM’s oil recovery solution technology last year.

Ethanol, Ethanol News

Appeals Court Upholds E15

Cindy Zimmerman

The U.S. Appeals Court for the District of Columbia Circuit has sided with the Environmental Protection Agency (EPA) and upheld its partial waiver approval for E15 ethanol fuel for model year 2001 and newer light duty vehicles and all flex fuel vehicles.

“Today the U.S. Court of Appeals appropriately rejected multiple legal challenges to the introduction of E15 into the commercial marketplace,” said Tom Buis, CEO of Growth Energy. “This decision is a win-win for both the American consumer and our nation.”

“Adding an E15 option along side E10 and higher ethanol blends allows consumers to make the fuel decisions that work best for them and their vehicle,” Renewable Fuels Association President and CEO Bob Dinneen said. “Allowing for additional ethanol use will help lower prices at the pump, create domestic jobs, and accelerate the commercialization of new biofuel technologies.”

So far, one station in Lawrence, Kansas has started selling E15 under the conditions set by the partial waiver. The challenge to EPA’s waiver was filed by the Grocery Manufacturers Association.

Ethanol, Ethanol News, Growth Energy, RFA

RFA: Reports Show Waiver Won’t Lower Corn Prices

John Davis

The folks from the Renewable Fuels Association are pointing to two university studies as proof any waiving of the Renewable Fuel Standard (RFS) would not significantly lower corn prices. The issue came to the forefront in the last few weeks as the drought pushed corn prices to record levels, and livestock groups look to the RFS waiver as relief from those prices. But this RFA news release points to a Purdue study (featured earlier here on Domestic Fuel in a webinar put on by Farm Foundation) and Iowa State University research that the drop in corn prices would be only about 5.6-7.4 percent. The webinar earlier today also showed the lower prices for producers and consumers at the grocery stores would not happen this year.

“The desire by livestock groups to see additional flexibility on ethanol mandates may not result in as large a drop in feed costs as they hope,” wrote Iowa State Professor Bruce Babcock. “…the flexibility built into the Renewable Fuels Standard allowing obligated parties to carry over blending credits (RINs) from previous years significantly lowers the economic impacts of a short crop, because it introduces flexibility into the mandate.”

Similar comments came from the authors of the Purdue study. “A partial waiver certainly is not a ‘stroke of the pen’ solution…” to record high corn prices, they wrote. “Corn prices pushed higher by the worst U.S. drought in half a century would not necessarily moderate if the federal government’s corn ethanol mandate were temporarily suspended,” according to a Purdue University press release announcing the release of the study.

“These economic analyses compellingly show that waiving the RFS is unnecessary and would be ineffective in meaningfully reducing corn prices,” RFA President and CEO Bob Dinneen said. “Congress and EPA built sufficient flexibilities into the RFS to ensure compliance is achievable even under the most abnormal and extreme circumstances, such as this summer’s drought. These studies recognize the impact of that built-in flexibility and show that a waiver would not significantly contribute any additional further relief from drought-induced high corn prices.”

You can hear the audio from today’s webinar here: Farm Foundation-Purdue Webinar on Drought and RFS Waiver You can see the associated slide show here.

Audio, corn, Ethanol, Ethanol News, Government, RFA, RFS

RFS Waiver Would Not Immediately Impact Corn Prices

John Davis

While a new report shows that a waiver of the Renewable Fuels Standard could drop corn prices, the impact would not be felt this year and could vary. The Purdue University report, entiled Potential Impacts of a Partial Waiver of the Ethanol Blending Rules, was authored by the school’s Wally Tyner, Farzad Taheripour and Christopher Hurt and presented today in a Farm Foundation webinar. It says corn prices could drop anywhere from 47 cents to $1.34 per bushel, depending on what level the drought impacts the final harvest, how big the waiver is, and how many unused Renewable Fuel Identification Numbers (RINs) are cashed in. But livestock producers and consumers would not see any benefit this year.

Tyner explained that technical and financial incentives could determine the impact of the waiver. “If refiners and blenders cannot change for technical reasons what they’re doing now, then a waiver has very little impact. But if they do have flexibility, then there is potential for a waiver having an impact,” Tyner said. Hurt added that there could be some unintended consequences, including what he calls demand destruction. “If we return to normal production in the next 12 months, then we have a fairly large supply, we have the possibility of looking at a 15 billion bushel corn crop with a utilization base of 11 billion bushels,” pointing out that we could see prices swing back to extremely low prices as quickly as they rose to these current high prices.

Paragon Economics’ Steve Meyer and the University of Minnesota’s Vernon Eidman were also listening in on the call and offering their perspectives. Meyer said the projected reduction in corn prices could translate into $2.60-3.50 per head on hogs. “We’re not talking about peanuts here.” But Eidman was quick to point out any RFS waiver would not impact corn use for ethanol this year. “It will take more time than that to get the rollback to occur,” Eidman said.

All on the webinar agreed that the EPA should not rush to issue any judgment until more complete information is known about the corn harvest, most likely in the next couple of months. “It’s important to get this right,” concluded Eidman.

It’s a really good conversation, and you can hear the entirety of it here: Farm Foundation-Purdue Webinar on Drought and RFS Waiver You can see the associated slide show here.

Audio, corn, Ethanol, Ethanol News, Farm Foundation, food and fuel, Government, RFS, Webinar