American Ethanol Flags Fly in Michigan

Cindy Zimmerman

NASCAR fans attending the Quicken Loans 400 at Michigan International Speedway were flying American Ethanol Green flags as the cars promoting ethanol and family farmers hit the track.

Corn growers and the American Ethanol team distributed 3,000 flags to campers prior to the races, where Kenny Wallace piloted the Family Farmers car on Saturday and Austin Dillon made his 2012 Sprint Cup debut in a full American Ethanol paint scheme on Sunday.

“It was a terrific weekend to be at the races,” said NCGA President Garry Niemeyer. “There was so much excitement on the part of the drivers and the fans, and you could not miss the involvement of our growers and others in spreading the word about America’s favorite renewable fuel.”

Even Sen. Debbie Stabenow (D-MI) was at the race and got a flag – a bigger one than most fans got. The senator met with corn grower leaders prior to the race to discuss several topics of importance to growers, including protecting the Renewable Fuel Standard (RFS) and the pending farm bill in the Senate.

American Ethanol, corn, NASCAR, NCGA

Ethanol Industry Prepares for E15 Sales

Cindy Zimmerman

Ethanol Report PodcastWith the approval by EPA of the first retailers to sell 15% ethanol blends, the industry is gearing up for imminent sales of the new blend level, possibly this week. In this edition of “The Ethanol Report,” Renewable Fuels Association (RFA) President and CEO Bob Dinneen talks about how the final, final hurdle to E15 sales was overcome and what the industry is doing now.

Listen to or download the Ethanol Report here: Ethanol Report on Final E15 Hurdle

Subscribe to the Ethanol Report here.

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Iowa Leads the Way in Renewable Fuel Growth

Joanna Schroeder

According to a new study by Cardo ENTRIX, the “renewable fuels industry has grown spectacularly over the past decade and Iowa has been a major participant and beneficiary.” This is no surprise as Iowa leads the way in biodiesel and ethanol production. To learn about some of the key highlights of the study, I spoke with Brad Albin, VP of Manufacturing for REG Services, LLC and the President of the Iowa Renewable Fuels Association (IRFA) who sponsored the study.

The study was released to help celebrate IRFA’s 10th Anniversary and also coincided with the declaration that June 15 is Iowa Ethanol Day.

A few key highlights:

  • During the past 12 years in Iowa, ethanol production has increased 741% and biodiesel production has increased 1,600%.
  • The portion of Iowa’s agricultural economic output attributable to the renewable fuels industry increased from 4.6% in 2002 to more than 37% in 2011.
  • By 2011, ethanol and biodiesel production accounted for nearly 7% of manufacturing sector output.
  • The total number of jobs in the entire Iowa economy supported by the renewable fuels industry has grown from around 3,500 in 2002 to 79,000 in 2011 an increase of more than 2,000%.

The first conclusion many will jump to is the industry is thriving due to subsidies. This is not the case. Today, neither biodiesel nor ethanol receive any subsidies. Albin explained, “The incentives that the fairly young biodiesel industry have received pale in comparison to what oil companies continue to receive after they have been in business for over 100 years and are making record profits.”

“The biodiesel industry has proven it has the capacity to produce over 1.5 billion gallons per year of renewable fuels from feedstocks grown and produced in America, while reducing hazardous tailpipe emissions, reducing our dependence on foreign oil, creating and needed good paying jobs and returning more value to the economy than any incentive the industry has ever received.”

Albin said he hoped but never anticipated how quickly the industry would grow, and he is looking forward to seeing the industry grow even more over the next decade.

You can learn more about the key highlights of the study by listening to my interview the Brad Albin here: Brad Albin Talks Iowa Economics

Audio, Biodiesel, biofuels, Ethanol, Iowa RFA, REG

Iowa Gov. Brandstad Declares Iowa Ethanol Day

Joanna Schroeder

June 15, 2012 was a big day for the renewable fuels industry in Iowa. It was the 34th anniversary of the first gallon of commercial E10 being sold, the 10th Anniversary of the Iowa Renewable Fuels Association (IRFA) and E15 is ready to go in Iowa following a federal EPA announcement that the final regulatory hurdles had been cleared.

I was on hand for the press conference and watched the Iowa Ethanol Day Declaration being signed. “I, Terry E. Brandstad, Governor of the State of Iowa, do hereby proclaim today, June 15, 2012, as Iowa Ethanol Day.”

A side note. When I first began to drive my dad took me to the gas station to teach me how to pump gas and he said, “We use ethanol.” So I used ethanol until I moved to Texas. My first gas station stop in Dallas I couldn’t find the ethanol so I went inside to ask. “We don’t have ethanol,” was the response. I was shocked – I thought all gas had ethanol. We might not be there yet, but we’re on our way.

Prior to signing the declaration, Brandstad spoke about how far ethanol has come in both Iowa and the U.S. He also talked about how oil companies continue to be resistant to blending renewable fuels and will continue to fight against the industry. This holds true for E15, where oil industry barriers remain.

“Not surprisingly, the oil industry has used its fuel distribution monopoly to keep the blendstock for E15 out of Iowa, said Monte Shaw, Executive Director of IRFA. “Some in our industry are attempting to bypass the oil system in order to bring the proper blendstock into Iowa, but it’s too soon to know if that will prove feasible. Clearly, the oil industry isn’t interested in consumer choice or lower cost fuel.”

You can listen to Gov. Brandstad’s remarks along with the reading of the Iowa Ethanol Day Declaration here: Iowa Ethanol Day Declaration

Audio, Biodiesel, biofuels, blends, Ethanol, Iowa RFA

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