Butamax expands Biobutanol Early Adopters Group

Cindy Zimmerman

Four additional plants have joined the Butamax™ Advanced Biofuels Early Adopters Group (EAG), indicating their interest in biobutanol production.

According to the company, Platinum Ethanol LLC of Arthur, Iowa; Little Sioux Corn Processors of Marcus, Iowa; Granite Falls Energy LLC of Granite Falls, Minnesota; and Siouxland Ethanol of Jackson, Nebraska have joined the EAG, which was launched in December 2011, bringing the total membership to seven plants, with ethanol production capacity totaling approximately half a billion gallons per year.

The four new ethanol plants to join the EAG, along with the previously announced EAG members, are all Fagen/ICM-designed facilities constructed by Fagen, Inc. “Biobutanol is an exciting next step in the evolution of biofuels and presents a significant opportunity for companies such as ours to produce and market a higher-value product and reduce greenhouse gas emissions,” said Ron Fagen, owner of Platinum Ethanol LLC and Chairman of Fagen Inc.

advanced biofuels, biobutanol, Ethanol, Ethanol News

Ethanol Co-Product Prices Higher

Cindy Zimmerman

Tight corn supplies, higher corn prices, low ethanol processing margins, export demand and high soybean meal prices are among the factors contributing to higher prices for dried distillers grains plus solubles (DDGS), the ethanol co-product used as livestock feed.

South Dakota State University economics professor Darrell Mark says price for distillers grains usually declines going into summer as cattle feedlot inventories decline and more cow herds and stockers are turned out to pasture. This year, however, distillers grains prices have been increasing going into summer.

“The average price for dried distillers grains plus solubles (DDGS) in South Dakota increased about $3/ton during each week of May although it did moderate some in the first two weeks of June. While domestic demand from the cattle industry is not substantially deviating from normal seasonal trends, several other supply and demand factors have driven the price increases in recent weeks and are likely to continue through the summer months,” said Mark, a market analyst for iGrow.org.

“With high corn prices, ethanol producers have struggled to maintain margins, and are finding incentive to run at reduced capacity and shut down plants for longer periods of time for maintenance, etc.,” Mark said. “Doing so can lessen their losses, but it does reduce the amount of distillers grain produced as well. Thus, with lower supply of distillers grains, prices tend to rise, as have been seen throughout 2012.”

Mark encourages producers to discuss this issue with their current distillers grain suppliers and understand their plant production schedule. He also suggests they purchase product from two or more plants to help offset risk associated with losing distillers grain from one particular plant.

Higher soybean meal prices and export demand for DDGs is also helping to boost prices but Mark expects the impact of the high old crop corn prices and soybean meal prices to lessen by early fall as U.S. corn and soybean supplies become available.

“With the prospects for a record large corn crop and lower prices, ethanol production is likely to increase as margins improve, thus increasing distillers grain production,” he said.

Distillers Grains, Ethanol, Ethanol News, livestock, livestock feed

New Ad Campaign Shows Biodiesel on the Fast Track

John Davis

For years, the folks at the National Biodiesel Board have been emphasizing how their green fuel is on the fast track to more jobs and American energy independence. Now, in a new web and television campaign, they’re also talking about how biodiesel is also part of the literal fast track of vehicle land speed records. Check it out:

The ad features the roar of a stock Ford SuperDuty™ diesel truck running on 20 percent biodiesel driven by Oklahoma soybean farmer and land speed record holder Brent Hajek. He set the record at 182 miles an hour… truly showing just how good biodiesel performs. But, the high performance is no surprise to out friends at NBB:

“A billion gallons. That’s how much imported diesel biodiesel replaced last year,” said Joe Jobe, CEO of the National Biodiesel Board. “This is not just an idea. Biodiesel is working today to meet renewable fuel demands, and we can do more.”

“This ad campaign tells people that advanced biofuel is here now,” said Jobe. “Biodiesel creates jobs, is better for the environment, and supports energy security. AND it breaks land speed records too. There’s no doubt this is a great alternative fuel success story.”

You’ll see the ads debut on television on this coming Sunday morning’s network news public affairs shows. You can also check out the ads now at www.AmericasAdvancedBiofuel.com.

Biodiesel, NBB, Video

Hurdle Cleared for Sale of 15% Ethanol Blends

Cindy Zimmerman

The Environmental Protection Agency has given its approval for the first retailers to sell 15% ethanol blended fuel.

“Today, the last significant federal hurdle has been cleared to allow consumers to buy fuel containing up to 15 percent ethanol (E15),” said Agriculture Secretary Tom Vilsack. “This gets us one step closer to giving the American consumer a real choice at the pump. The public has a right to choose between imported oil and home-grown energy and today’s action by the Environmental Protection Agency (EPA) advances that goal.”

EPA announced today the approval of the first Misfueling Mitigation Plans (MMPs) for individual companies after working with the Renewable Fuels Association (RFA) about how E15 would be dispensed, particularly from blender pumps. According to EPA, it was determined that an addendum to RFA’s Retailer Handbook “provided the necessary information for EPA to approve the individual plan submitters’ MMPs.”

“In the eyes of the federal government, E15 is a legal fuel for sale to cars, pickups, and SUVs made since 2001,” said RFA President and CEO Bob Dinneen. “With all i’s dotted and t’s crossed as far as EPA is concerned, our undivided focus will turn to addressing state regulatory issues, identifying retailers wishing to offer E15, and paving the way to greater use of domestically produced ethanol.”

In cooperation with Growth Energy, the RFA has also initiated a nationwide fuel survey program as required by EPA to ensure stations offering E15 are adhering to misfueling mitigation requirements, such as proper labeling, ethanol content, and vapor pressure. “We are committed to ensuring a safe and smooth introduction of E15 for consumers and retailers alike,” said Dinneen. “Change often breeds confusion and as stations begin to offer E15, the RFA will proactively work with those retailers to educate consumers on the appropriate use of E15 and the benefits of greater domestic ethanol use. We believe it is possible that gallons of E15 could be sold under the waiver conditions before the end of the summer.”

However, RFA notes that hurdles to the widespread adoption of E15 still remain, including pending litigation, threats of congressional intervention to prevent the sale of E15, and state regulatory issues. Also limiting the fast adoption of E15, particularly in summer months, is the requirement that E15 meet stricter federal evaporative emissions standards, known as Reid Vapor Pressure or RVP.

Ethanol, Ethanol News, Government, Growth Energy, RFA

Farm Bill Amendments Target Energy Programs

Cindy Zimmerman

Several of the more than 200 amendments proposed for the 2012 Farm Bill in the Senate would negatively impact Farm Bill energy programs.

Among the growing list are two from Sen. Jim DeMint (R-SC) that would eliminate all energy title mandatory funding and prohibit loan guarantees. Sen. Pat Toomey (R-PA) is seeking to kill the Biorefinery Assistance Program and Sen. Mike Lee (R-UT) wants to terminate BCAP. Amendments offered by Sen. John McCain (R-AZ) and Sen. John Boozman (R-AR) would prohibit federal spending on blender pumps. And two amendments by Sen. DeMint and Sen. Saxby Chambliss (R-GA) would repeal the Renewable Fuel Standard (RFS).

The Agriculture Energy Coalition (AgEC) sent a letter this week to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) urging them to defend re-authorization and significant mandatory funding for Farm Bill Energy Title programs as passed by the Senate Agriculture Committee.

“America’s agriculture, biotechnology and renewable energy industries are world leaders in the development and commercialization of biofuels, bioproducts, biopower, biogas, energy crops, renewable electricity and energy efficiency. These important and growing industries have already made significant contributions to our economic, environmental and national security and are poised to have an even more profound impact in the coming years – provided we commit ourselves to supporting and nurturing them with sound, consistent, forward-looking policies in the years ahead,” the letter states.

Work on the Farm Bill in the Senate ground to a halt this week after considering only two of the 240 amendments offered as of Wednesday.

AEC, biomass, Energy, Ethanol, Ethanol News, Government

New RIN Network for Biodiesel Industry

Joanna Schroeder

The RIN 9000 verification program developed by Lee Enterprises Consulting is merging with the RIN Integrity Network developed by Genscape to create a standard RIN program for the industry. The goal of the new program is to provide information that will both satisfy concerns of obligated parties as well as benefit producers.

Susan Olson, VP of Analytical R&D at Genscape said merger talks were spurred after discussions with smaller producers regarding their needs. She said the company began to add technology to their monitoring program to help producers promote their integrity and boost process efficiency.

“The formation of this strategic partnership with Lee Enterprises Consulting enables Genscape to offer the best, most comprehensive RIN integrity services, and to have a complete line of other biodiesel services at its fingertips,” said Olson. “This is winning combination for the biodiesel industry.”

The RIN Integrity Network will bring together several major biodiesel players. Jess Hewitt, CEO of Gulf Hydrocarbon will be providing initial RIN education services to clients and AP Innovations will conduct on site visits. Christianson & Associates will provide RIN attestation, auditing, verification and consulting services. Intertek Commodities, an industry leader in analytical testing, will perform ASTM testing of product samples collected during site visits.

Members of the strategic alliance believe that they will give a boost to the RIN market that has been plagued by difficulty. Small producers want to sell their RINS at fair market value and obligated parties need assurances that the RINS are valid. “This joining of forces by the biodiesel industry’s major groups allows our RIN Integrity Network to answer those problems urgently for producers and obligated parties,” concluded Olson.

advanced biofuels, Biodiesel

Today is Global Wind Day

Joanna Schroeder

Today is Global Wind Day (June 15) and thousands of people will be participating in more than 200 events in at least 40 countries. With the focus on wind at a peak, many are using the events to put pressure on world leaders who will gather next week for RIO +20 Summit. It is anticipated that leaders will commit to doubling the amount of renewable energy generated by 2030.

Wind power has been gaining favor and today at least 75 countries use more than 1000 MW of wind power as part of their energy mix. This is more than 30 times the amount of capacity since 1997 when the Kyoto protocol was signed. Projections continue to predict growth over the next 20 years with the doubling of capacity by 2015 and again by the end of this decade. If this is achieved, between 9-12 percent of the world’s power would be generated by wind power.

UN Secretary General Ban Ki-moon’s will be speaking in Rio about his Sustainable Energy for All initiative that calls for universal energy access with a doubling of renewable energy by 2030. More wind power would reduce the use and spending on fossil fuels, create millions of jobs, clean the air, and address issues related to global climate change.

“We need to double the share of renewable energy in the global energy mix by 2030,” said Kandeh K. Yumkella, the Director-General of the United Nations Industrial Development Organization (UNIDO), and the leader of the Secretary General’s initiative. “This can be achieved with significant contribution from wind energy, both grid connected and for small-scale decentralised systems.”

“The ‘Global Wind Day‘ on 15 June, does play a central role in contributing to the UNSG’s Sustainable Energy For All initiative through galvanising the much needed support for the wind energy industry from political leaders around the globe,” added Yumkella. This is the 4th Anniversary of the world wide event.

Steve Sawyer, Secretary General of the Global Wind Energy Council concluded, “Wind energy provides a solution to some of the most critical challenges we face today: climate change, and fresh water scarcity. The power sector is the single largest contributor to global greenhouse gas emissions, and is also one of the largest consumers of fresh water. Wind energy produces no carbon dioxide, and consumes no water.”

Electricity, Energy, Wind

Higher Renewable Energy Mandate Expected for Europe

Joanna Schroeder

There are energy talks scheduled in Luxembourg tomorrow and EU Energy ministers are expected to adopt higher mandates of renewable energy beyond 2020. To support the goal, there will need to be post 2020 strategies put into place now that include a 2030 policy framework.

“The European Parliament, European Commission and now all EU Energy Ministers agree on substantially increasing renewables beyond 2020 and the need for a 2030 policy framework,” said Christian Kjaer, CEO of the European Wind Energy Association (EWEA). “That is a good start. But investors need EU Ministers to move beyond generalities very soon.”

Kjaer, whose organization is in support of higher renewable energy goals that include wind power, has been attending the open meetings of EU Energy ministers. He cautions that even if they agree to increase renewable energy goals after 2020, the first date initial goals are to be met, without strict policy in place the initiative won’t succeed.

“If the politicians want private sector investment in renewable energy and its economic benefits including those from European technological leadership, they urgently need to agree on a target for renewable energy for 2030,” concluded Kjaer.

Electricity, Energy, Wind

Free Biodiesel Workshops

Joanna Schroeder

The American Lung Association in Minnesota is hosting two free workshops on biodiesel, a renewable fuel alternative to diesel. The workgroups will take place Thursday, June 21 from 2:00 pm to 4:30 pm and Friday, June 22nd from 9:00 am to 11:30 am at the AmericInn at 1500 Highway 71, International Falls.

National fuel expert Hoon Ge of MEG Corporation will be the key speaker and he will cover recent refining changes in diesel fuels, how to prevent, identify and respond to issues with diesel and the growing role of biodiesel in the transportation industry.

The United Soybean Board, Minnesota Soybean Research & Promotion Council and Twin Cities Clean Cities Coalition are sponsoring the workshop. The workshops are free but space is limited to so Lisa Thurstin to secure you spot.

advanced biofuels, Biodiesel

IRFA to Celebrate 10th Anniversary

Joanna Schroeder

Although ethanol has been used in Iowa for many decades, an Iowa-focused organization dedicated to the use of renewable fuels didn’t begin until 2002 – The Iowa Renewable Fuels Association (IRFA). To celebrate the 10 year milestone,  IRFA is hosting an event coinciding with the 34th anniversary of the first retail sale of E10, which just so happened to take place in Iowa. Today, through its educational and promotional efforts, IRFA has helped the state more than double its use of biodiesel and ethanol.

Tomorrow, along with Iowa Gov. Terry Brandstad, IRFA is releasing a new study detailing the positive impact renewable fuels has had on Iowa’s economy. In addition, Gov. Brandstad has declared June 15th “Iowa Ethanol Day” to mark 34 years of ethanol sales across the state.

Also on hand for the event will be Iowa Lt. Governor Kim Reynolds; IRFA President Brad Albin (who works for REG, Inc.); and IRFA founding member Bill Couser (who works for Lincolnway Energy).  DomesticFuel will be on hand to cover the event, being held at the Iowa State Capitol at 9:00 am on June 15, 2012.

advanced biofuels, Biodiesel, biofuels, Ethanol, Iowa RFA