Tell Governors No to RFS Waiver

Joanna Schroeder

As the political frenzy heats up leading into the Democratic and Republican Conventions, the ethanol industry’s campaign to stop a waiver to the Renewable Fuels Standard (RFS) is heating up as well. This week, several ethanol organizations have sent out letters to key legislatures including governors explaining why there is no need for a waiver. The governors who are advocating for a waiver include Arkansas, North Carolina, Texas, Georgia, and New Mexico.

The letter from Growth Energy supports statements made by others in the industry including an explanation of the inherent flexibility built into the RFS and how obligated parties can easily meet the volume requirements this year. The letter also debunks the fallacy of the total corn crop that is actually used in ethanol production. In addition, the letter explains that waiving the RFS would not have any significant impact on corn prices; rather, commodity prices are affected by speculation and Mother Nature.

Growth Energy CEO Tom Buis dropped by the Farm Progress Show Tuesday just before heading to Tampa for the Republican convention and Cindy Zimmerman was able to speak with him in more detail about why a waiver for the RFS would not help, but hurt farmers, the ethanol industry and most important consumers.

You can listen to the full interview with Tom Buis here: Tell Governors No to RFS Waiver

Renewable Fuels Association President and CEO Bob Dinneen said in his organization’s letter, “The rash of governors rushing to appease the pleas of the livestock and food processing industries are ignoring the damage a waiver would do to consumers at the pump. Removing ethanol from our fuel mix would drive oil and gasoline prices higher, adding pain at the pump and increased cost at the checkout counter due to higher energy costs for farmers, food processors, and food transporters. These increases in gas prices would far outpace any negligible relief to food prices from a waiver. The alleged economic harm cited by these governors does not rise to the kind of economic harm EPA determined necessary to waive the RFS. The facts cited in support of their case also fail to pass muster.”

Audio, biofuels, corn, Ethanol, Farm Progress Show, Growth Energy, RFA

Gas Prices Rise with Isaac’s Arrival

Joanna Schroeder

Gas prices are beginning to rise in anticipation of hurricane Isaac, directly headed to New Orleans nearly seven years after hurricane Katrina. While evacuation plans were underway in the city, President Obama was in Ames, Iowa and Monte Shaw, the executive director of the Iowa Renewable Fuels Association brought a letter for the president asking him to take emergency action to suspend the federal petroleum mandate for the next four to six week so retailers could use higher blends of ethanol. This would help make up for any lost petroleum production if any refineries should take a hit during the storm.

The letter reads, “With the busy Labor Day weekend right around the corner, the last thing American consumers need is higher gasoline prices – but that is just what they’ll get.  Nearly 80 percent of the daily oil production in the Gulf region has been halted due to Tropical Storm Isaac.  The storm has also shut down the refining operations in the area – 40 percent of America’s entire refining capacity.  According to the National Journal, these operations are expected to be off-line at least two weeks.

Therefore, IRFA is asking you to take emergency action to suspend the federal petroleum mandate for the next four to six weeks. Currently federal law requires that a minimum of 85 percent of every gallon of gas sold in America be from petroleum sources. If retailers sell or consumers buy a fuel blended with less petroleum (i.e. more ethanol) they are subject to a $37,500 per day fine by the federal government.

Due to the current petroleum challenges, if gasoline prices increase by only a modest 20 cents per gallon for four weeks, that equates to a “mandate tax” of over $300 million dollars – more than a quarter of a billion dollars!

According to the Energy Information Administration, there are over 775 million gallons of ethanol in storage today. If provided the regulatory flexibility to do so, retailers could use this ethanol to make up for the lost petroleum production over the next few weeks during this emergency situation.  Not only would ethanol add supply to the market, but ethanol is already less expensive than gasoline.”

biofuels, Ethanol, Iowa RFA

Getting More Products From Soybeans

Joanna Schroeder

During the 244th National Meeting & Exposition of the American Chemical Society a new integrated soybean biorefinery was revealed. The technology is designed to create a wider portfolio of products from soybeans.

“Mention soybeans to most people, and they immediately think of the oil,” said Ramani Narayan, Michigan State (MSU) University Distinguished Professor, who reported on the new biorefinery technology. “Soybean oil is the world’s most widely used edible oil. It’s in some margarines, shortenings, mayonnaise, salad dressings, frozen foods, baked goods and many other items. But soybeans are about more than oil. Soybeans are nuggets of green gold that can be a treasure trove of ingredients for other products, and our new biorefinery provides a glimpse of that potential.”

The biorefinery is a fairly new product, often times it is associated with second generation feedstocks such as corn stover, algae and agricultural waste that can produce biofuels, biomaterials and biochemicals. Until now, the mention of soybeans in this emerging environment was rare.

Narayan aid that soybeans pack similar potential as corn as a feedstock but until now, soybean processing facilities have typically focused on producing oils and meal for livestock feed. Switching to the biorefinery concept, the soybean can be transformed into a much wider array of valuable materials. For example, components of a soybean could be turned into polyurethanes, including rigid foam insulation, flexible foams for packaging, as well as coatings, adhesives and elastomers.

The soybean meal could be further processed to yield components used in polyester plastics for fabrics, ropes, car tires, plastic bottles, and LCD screens as well as used in Nylon and Kevlar for bulletproof vests and fire-resistant Nomex. Not enough? Soybeans could also be broken down and built back up as as an ingredient is formaldehyde, a toxic chemical used in a range of products from paint to clothing to children’s toys. And the list goes on.

“The biorefinery can utilize essentially every component of the soybean in the production of bio-based ingredients for high-value products,” Narayan added. “It makes sense from a sustainability standpoint, in which we strive to reduce our dependence on petroleum as a feedstock. It also benefits the soybean farmers and raises the value of the local economy.”

Agribusiness, biochemicals, Biodiesel, biofuels, biomaterials, bioplastics, Soybeans

Railroad Transportation Company Turns to Propane

Joanna Schroeder

Trains may not run on alternative fuels just yet, but one of the companies that provides railroad crew transportation solutions does. Rezenberger recently unveiled ten 2012 ROUSH CleanTech propane autogas fueled Ford E-350 shuttle vans for its California fleet.

The unveiling took place during an event called “Less Traffic, Lower Emissions — Crew Transportation Company Rides Clean with Propane Autogas,” held at the BNSF San Bernardino Intermodal Facility. During the event key members of the Rezenberger and ROUSH CleanTech team showcased the benefits of propane. Attendees were able to experience the performance of propane by test-driving the vehicles.

“Choosing propane autogas to fuel our fleet vehicles has allowed Renzenberger to reduce the carbon footprint of our company and lower fuel costs, while providing a safe, sustainable and reliable transportation solution to transport California employees,” said Karen Seitter, president of Renzenberger. “This area is known for congestion, and we are reducing both traffic and emissions.”

When considering the switch, Renzenberger estimated they will save nearly $14,500 per vehicle in fuel costs each year. This is important because the company logs more than 60 million miles each year transporting railroad, oil and gas and its employees to and from work sites across the country. The company has a private on-site station at its San Bernardino, California location and also takes advantage of public propane autogras stations across Southern California.

Todd Mouw, vice president of sales and marketing for ROUSH added, “We are excited to help Renzenberger achieve their safety and sustainability goals with this clean-burning alternative to gasoline. Renzenberger plays an important role in safely transporting railway crew from job site to job site. They’re now able to do this cleaner, safer and less expensively using propane autogas.”

Propane

Ethanol Industry Seeks Obama’s Support

Joanna Schroeder

The newly formed Biofuels Producers Coordinating Council sent a letter this week to President Obama in an effort to stress the importance of the Renewable Fuel Standard (RFS). Many organizations have been calling for a waiver of the RFS due to severe drought conditions this summer but the ethanol industry says that the RFS was developed to allow flexibility for various situations including severe weather conditions. The letter also explains several counterintuitive consequences of waiving the RFS.

One of the Biofuels Producers Coordinating Council members, Growth Energy, said about the letter, “While the Environmental Protection Agency has the fiduciary duty to review the petitions filed by state governors, I felt it was critical that the industry communicated the importance of the RFS and how a waiver will not accomplish the goal of bringing down grain prices,” said Tom Buis CEO of Growth Energy.

The Council says that blaming ethanol industry is disingenuous and misplaced and in the letter addresses much of the misinformation. For instance, the letter says, ethanol production does not use 40 percent of the corn, only 16 percent of the total net corn acreage. The starch is removed and the fiber is used for animal feed. In addition, the Council says the market is already working in the response to high commodity prices.

One other fact the Council points out is that obligated parties will continue to use ethanol blends in gasoline because it remins the cheapest way to increase octane. Should ethanol be removed from the fuel supply, gas prices would go up, not down, and negatively affect consumers.

In conclusion, the letter says that one isolated event should not dictate policy decisions. Click here to read the letter in full.

corn, Ethanol, Growth Energy

Organic Produce Company Harnesses Solar

Joanna Schroeder

Food producers and manufacturers continue to harness the sun. Watsonville Coast Produce, based in Watsonville, California, has just gone online with a 739.2 kW solar power system to generate all the electricity needed to power its agricultural distribution facility. The 44,000 square foot warehouse has nearly 450,000 cubic feet of refrigerated space to house its organic produce before being shipped out to consumers.

The Solar Company assisted in the design and installation of the solar power system that is comprised of 2,400 SunPower panels. Estimated annual production is 1,094,576 kWh, powering a projected one year savings of $134,314 and 10 year savings of $1,770,367.

“We anticipate saving nearly $120,000 within the first year of production,” said Gary Manfre.

Agribusiness, Electricity, Energy, Solar

Car Talker Responds to SEMA Ethanol Slam

Joanna Schroeder

Specialty Equipment Market Association (SEMA), has slammed ethanol saying it opposes the use of E15 based on scientific evidence that it causes corrosion with incompatible parts. They are one of many organizations that have brought a lawsuit against the use of E15 that also included manufacturers of cars, boats and power equipment. The organization says ethanol increases water formation that can create formic acid and corrode metals plastics and rubber.

The court has ruled in favor of E15 and now SEMA is spearheading a campaign targeted at U.S. Congress calling for them to enact legislation to ban the sale of E15.

In response, Bobby Likis, who is best known for his national radio program Car Clinic, has come out in support of ethanol (scroll down to see his response) the most researched fuel in the history of America. Likis writes that it is as if “…SEMA is more interested in sustaining old-think…outdated technologies” and “continued dependence on foreign oil.”

He continues to say that old car parts can be updated and people are smart enough to know that E15 is only approved for cars manufactured after 2001. He also put out a call to action asking consumers to let their representative know they support choice at the pump and to defeat federal legislation (HR 3199) that would ban the sale of E15.

automotive, biofuels, blends, Ethanol, Opinion

Export Exchange 2012 Heads to Minneapolis

Joanna Schroeder

Minneapolis, Minnesota is the home of the Export Exchange 2012 on October 22-24, 2012. Co-sponsored by the U.S. Grain Council and the Renewable Fuels Association (RFA), past events have attracted nearly 400 people from more than 30 countries ranging from domestic industry leaders to international buyers.

There will be many topics of discussion including a big picture overview of key factors that will drive global food and agriculture over the next decade. Other topics will include a review of U.S. and global supply and demand outlook for coarse grains in the coming year. The presentation by Chief Economist of the U.S. Department of Agriculture (USDA) Dr. Joe Glauber will touch on the 2012 harvest and its potential impact on world and domestic consumption and trade patterns.

Along with Dr. Glauber, Carl Casale, CEO of CHS will be the keynote speaker giving a global market outlook, RFA Present and CEO Bob Dinneen will discuss U.S. agriculture and energy policy, and Dr Michael Boland, Director of the Food Industry Center at the University of Minnesota will discuss the economic characteristics of the agrifood supply chain.

Registration is currently open. You can learn more about the conference and register online by visiting the Export Exchange 2012 website.

Agribusiness, biofuels, conferences, corn, Ethanol, Exports, RFA

“Ethanol Rocks” Farm Progress Show

Joanna Schroeder

The annual Farm Progress Show is heading back to Iowa this week and Boone, Iowa will be swarming with thousands of attendees checking out the latest and greatest in agricultural and energy technologies and products. One group who will be showcasing its work is the Iowa Corn Growers Association (ICGA), a state affiliate of the National Corn Growers Association (NCGA). Organizational employees will be educating members about what they are doing to help Iowa corn growers just inside the gate at booth 26N.

ICGA will also be promoting the “Ethanol Rocks” video contest open to high school and college students. Those students who attend the Farm Progress Show along with their coordinators can enter to win a Sony Handycam and NCGA backpack filled with just the right loot to get them started on their film career.

“With school starting, NCGA is taking this opportunity to reach out to high school and college students, along with FFA and Ag Club coordinators to sign up for our “Ethanol Rocks” video contest,” said NCGA First Vice President Pam Johnson. “In addition to finding out more about this program, show attendees can stop by the Iowa Corn Growers Association booth, visit with corn growers and learn what NCGA and Iowa Corn are doing to promote our industry at the national and state levels.”

The short videos should be two minutes or less and should highlight the benefits of ethanol fuel blends to the U.S. environment and economy. The first place winner will pocket $1,500 and the second place winner to take home $500. There will be winner for two categories: high school and college students. Videos must be received by 5:00 pm CDT, Monday, October 15, 2012.

In addition to getting the low-down on 411 for the Ethanol Rocks video contest, Farm Progress attendees can also stop by the ICGA booth to sign a petition to keep the Renewable Fuel Standard (RFS) in place. There is also an opportunity to win free registration to the 2013 Commodity Classic and visitors can walk away with educational materials on programs, topics and policies affecting the corn industry.

Each day during the show, at 2:00 pm, ICGA will host membership VIP educational sessions where speakers from the Iowa Corn Collegiate Advisory Team, CommonGround along with industry spokespersons will discuss how to involve the next generation in agriculture, discuss the economics of corn stover and learn about feed feasibility trials using corn stover.

The ZimmComm team will be posting live this week from the Farm Progress Show so don’t miss out on the one-of-a-kind coverage only Chuck and Cindy can bring.

Agribusiness, biofuels, Cellulosic, corn, Ethanol, Farm Progress Show, NCGA

Nebraska Corn Growers Funding Blender Pumps

Cindy Zimmerman

Nebraska corn growers are on a mission to get more blender pumps installed in their state, especially in the larger cities.

Kim Clark, director of biofuels development for the Nebraska Corn Board, gave an update at the American Coalition for Ethanol conference on what they are doing to help get more blender pumps out in the state. “The corn board feels blender pumps are really important, especially for the state of Nebraska, since we are the number two producer of ethanol,” she said, noting that they set aside $750,000 this year to help promote installation of pumps. There are nearly 20 in the state now and about 30 new pumps are expected to be installed within the next year.

One of their challenges is getting into the larger cities of Nebraska, like Omaha, where there are currently no blender pumps available. “With the new grant program of $40,000 max per location, that has gotten a lot more retailers interested,” said Clark.

Find out more about the program on the Nebraska Corn Board website.

Listen to an interview with Clark from ACE here: NE Corn Board's Kim Clark

ACE, Audio, blends, corn, Ethanol, Ethanol News