ACE Conference 2026

IRFA Urges AFP to Get Correct Ethanol Facts

When Americans for Prosperity (AFP) held a rally in Iowa last week, the Iowa Renewable Fuels Association (IRFA) called on AFP to set the record straight and get the correct facts out when it comes to ethanol and oil policy.

Iowa RFA“AFP’s energy policy should come with a whiplash warning,” stated IRFA Executive Director Monte Shaw. “They start by saying the government should not pick ‘winners and losers’ and then turnaround and promote favorable tax subsidies for the oil industry. Whenever a pro-oil group like AFP comes into Iowa spreading inaccurate or out-of-date information, IRFA will be here to set the record straight.”

AFP’s website is replete with numerous inaccurate and out-of-date attacks on ethanol while hypocritically supporting oil industry specific tax subsidies, according to IRFA. Even more telling, at no time has the so-called “free market” group called for an end to the federal petroleum mandate that prevents consumers from choosing the fuel of their choice.

“AFP’s hypocrisy is astounding,” continued Shaw. “On the same page they criticize the now expired ethanol tax credit, AFP argues for the continuation of intangible drilling cost expensing. That tax subsidy can only be claimed by those drilling oil wells and has been around since 1913, the inception of the modern federal tax code. When will oil be ready to stand on its own two feet without a taxpayer crutch?”

Shaw concluded, “At the same time AFP criticizes the federal renewable fuels standard, they remain silent on the federal petroleum mandate, which forces the vast majority of consumers to purchase fuels that contain at least 85% petroleum or face massive federal fines. In reality AFP is working to keep federal energy policy tilted heavily in favor of oil.”

Ethanol, Iowa RFA

Congressmen Defend Ethanol

Cindy Zimmerman

Members of Congress are exchanging dueling fact sheets about corn ethanol and the Renewable Fuel Standard (RFS2).

Congressman Bob Goodlatte (R-VA) sent an email last month to members of the House Commerce, and Agriculture and Energy Committees calling the RFS “a de facto mandate for corn ethanol” and urging members of the House Commerce, and Agriculture and Energy Committees to provide relief from alleged “unintended consequences” of the RFS. The email included a “fact sheet” blaming the RFS and corn ethanol for “wasting taxpayer money and harming consumers,” “driving more people into hunger and poverty domestically and abroad” and failing to make any progress toward energy independence for the nation.

In response, Congressmen John Shimkus (R-IL) and Collin Peterson (D-MN) sent out their own email and their own fact sheet citing the successes of the RFS and disputing claims in the Goodlatte letter.

Noting that the intent of the RFS is to “enhance energy security, reduce consumer fuel prices by diversifying our energy portfolio, create jobs and stimulate economic activity, and improve the environment” the congressmen said that “by any measure, the RFS is achieving these goals and providing tangible benefits to the American public.”

The Shimkus-Peterson fact sheet takes on each claim in the Goodlatte letter, referring to them as “abusrd” and “false and misleading” and “red herrings.” In particular, they dispute the notion that the RFS has done nothing to increase energy independence.

“In 2011, ethanol displaced the need for an amount of gasoline refined from 477 million barrels of crude oil—that’s more oil than the U.S. imported from Saudi Arabia,” they wrote. “Indeed, as a result of the RFS and increased ethanol use, U.S. oil import dependence has fallen below 50% for the first time since 1997. In 2005, the year the first RFS was passed by Congress, U.S. oil import dependence peaked at 60.3%. Subsequently, as ethanol production has ramped up, oil import dependence has fallen steadily and hit 45% in 2011, the lowest since 1994.9 Oil imports from the Persian Gulf have dropped by some 300 million barrels since 2001, while ethanol production has grown by 300 million barrels during that same period.”

National Corn Growers Association president Garry Niemeyer thanked Representatives Shimkus and Peterson for working to disseminate factual, accurate information about corn ethanol. “These distinguished Representatives demonstrated that they understand what corn growers have long known; corn ethanol provides important benefits to our economy, our energy security and to our environment,” he said.

corn, Ethanol, Ethanol News, NCGA

Flex Fuel Fishermen Can Land E85 Savings

Cindy Zimmerman

Anglers heading to the 2012 Fishing Opener this weekend in Coon Rapids, Minnesota can catch a deal Friday afternoon on 85% ethanol (E85).

The new Holiday station off Highway 10 near Hanson Blvd. in Coon Rapids is kicking off the weekend by offering E85 for an 85¢ per gallon discount on Friday, May 11 from 3-5 p.m. Those lucky enough to be one of the first 20 flex fuel vehicles in line will get E85 for just $1.85 per gallon.

“The new Holiday station in Coon Rapids is one of many stations in Minnesota that offer their customers a Clean Air Choice at the pump,” said Kelly Marczak, environmental programs director for the American Lung Association in Minnesota. “More than a quarter million Minnesotans have flex fuel vehicles that can use E85, and I encourage them to use this cleaner burning fuel whenever possible.”

E85 is for flex fuel vehicles only, and there is a 20-gallon limit per customer during the promotion. Fishing licenses are available at the station, and there will be other in-store specials during the event which is being sponsored by The Linn Companies, Minnesota Corn Growers Association, the American Lung Association in Minnesota, and the Minnesota Clean Air Choice Team. Installation of the E85 dispensing equipment at the site was supported, in part, by funding from a U.S. Department of Energy program.

For those wanting to use a GPS to locate the Holiday station, the address is 1855 Gateway Drive, Coon Rapids.

E85, Ethanol, Ethanol News

REG Financials Strong

Joanna Schroeder

REG, America’s largest biodiesel producer, came out strong in its first quarter financials. Earlier this year, REG had a very successful public offering. For the quarter ending March 31, 2012 revenues were $188.2 million, an increase of 80 percent compared to revenues of $104.4 million for the same period in 2011. When adjusting for EBITDA, revenues were $12.7 million, an increase of 140 percent compared to $5.3 million for the same period in 2011.

REG’s balance sheet also remains strong with cash of $75.2 million at the close of the quarter, compared to $33.6 million at December 31, 2011.

“During our first quarter as a publicly traded company, Renewable Energy Group again demonstrated why we are a leader in the advanced biofuel industry,” said Daniel J. Oh, President and Chief Executive Officer of REG. “We grew our biodiesel volumes and revenue substantially, raised capital with a successful IPO, and made solid progress toward upgrades and technology advancements at our biorefineries. With strong demand due to RFS2, and a fleet of biorefineries able to flexibly arbitrage lower cost feedstocks, we believe we are well-positioned to profitably grow our business in 2012 and beyond.”

REG remains poised to help the country continue to ramp up biodiesel production to meet the goals set forth by the Renewable Standard Fuels.

Biodiesel, biofuels, REG

New Tool for Energy Efficiency Education

Joanna Schroeder

For those looking to learn more about energy efficiency, a new educational site has launched: MyEnergyGateway.org. Hosted by the Association of Energy Services Professionals (AESP) Foundation. The site was created to become a library of training programs, degrees and certifications that focus on energy efficiency, sustainability, green and alternative energy. In addition, visitors will also be able to research information about engineering, green building design and other disciplines.

While the site was created for students, returning military personnel and displaced workers, anyone interested in beginning or continuing his or her education in the space will find this site useful. Not only does it contain lists of education programs, but also compares tuition costs, room and board costs, student to faculty ratio, and scholarship and internship opportunities among other information.

Why this site?

In 2011, ASEP published a survey of its members and nearly 60 percent cited a lack of talented workers in the field and more than half were in the process of recruiting for open positions. The U.S. Department of Energy funded the costs of developing the site through a grant in an effort to promote the need and types of jobs in the energy sector.

“Companies and utilities involved in creating energy efficiency programs are facing a lack of talented and adequately traine candidates for jobs,” said Meg Matt, President & CEO of AESP. “MyEnergyGateway.org serves as an educational pathway for students, returning military and those seeking a career change to better understand the numerous opportunities that currently exist in energy. The website encourages users to enter the industry and quickly identify the best options to pursue.”

bioenergy, biofuels, energy efficiency, Video, water

Ethanol Report Analyzes USDA Corn Numbers

Cindy Zimmerman

Ethanol Report PodcastThe first guess of corn production for the new year in USDA’s May 10 World Agricultural Supply and Demand Estimates report is even higher than many in the industry expected.

“By all accounts, it could be a monster,” says Renewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper who did an analysis of the numbers that came out this morning.

rfaBesides a record projected corn crop for 2012 of 14.8 billion bushels, Cooper says there are a number of interesting points to be made about the report, like the fact that use for ethanol is expected to remain steady, while usage for exports and animal feed are increased. “This report shows the increases in demand would not be coming from ethanol,” Cooper says. “So all this rhetoric we hear about ethanol diverting corn away from the feed market, what we’re seeing in this report is that isn’t the case.”

In addition, Cooper says adding in the use of the ethanol co-product distillers grains for livestock feed, “you end up with the equivalent of almost seven billion bushels of corn and co-products going into feed use and that’s an all time record.”

Listen to Cooper’s analysis of the numbers in this edition of “The Ethanol Report.” Geoff Cooper Analyzes USDA WASDE Report

Audio, Ethanol, Ethanol News, Ethanol Report, RFA, USDA

USDA Offers Optimistic Outlook for Corn Crop

Cindy Zimmerman

The first U.S. Department of Agriculture outlook for this year’s corn crop is calling for record yields and record production, while corn use for ethanol is expected to remain the same.

The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.

A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.

The report kept projected corn use for ethanol unchanged at 5 billion bushels for this year on weak gasoline consumption limiting domestic blending opportunities. In an analysis of the report this morning, the Renewable Fuels Association said, “While still just an estimate, the confidence USDA is displaying in American farmers underscores their unique ability to feed the world and help renewably fuel the nation. There is a lot of growing season left, and these numbers could change by the fall. But, with normal growing conditions it is clear that farmers will continue to meet the bell and provide safe, reliable food and clean, domestic fuel and silence those ‘chicken littles’ that perpetually predict a shortage of corn and catastrophe in the grocery aisle.”

corn, Ethanol, Ethanol News, RFA, USDA

EdeniQ Secures $30M in Bio Funding

Joanna Schroeder

Despite the sluggish economy, select advanced bioproducts companies are still receiving funding. EdeniQ has announced that they have secured over $30 million in capital in the form of an equity investment and debt facility. The funds will be used to continue development of its technology to convert sugars to biomaterials such as biochemicals and biofuels. The investment was led by current investors along with a new investor, Flint Hills Resources Renewables.

According to EdeniQ, its technology increases yield and output at existing ethanol plants and provides a pathway to move into cellulosic feedstocks. The Cellunator mills a variety of biomass into small, uniform pieces of feedstock that using Pathway enzymes to break down the materials can be converted at low cost to sugars. The company’s technology can be added as a bolt-on to existing ethanol facilities or integrated into new cellulosic ethanol processing plants.

“The market is eager for innovation that can scale from today’s ethanol technology to tomorrow’s resource requirements by creating the lowest-cost route to cellulosic sugars and subsequent high-value products,” said Brian Thome, President and CEO, EdeniQ. “The investments by these prestigious organizations allow EdeniQ to continue our strategy of taking advantage of the existing infrastructure in place across the country and providing a proven pathway to increased sugar yield.“

Flint Hill Resources has four ethanol plants operating in Iowa. Jeremy Bezdek, the company’s managing director of innovation said they invested in EdeniQ because, “EdeniQ’s proprietary technologies provide significant value for the dry-mill ethanol producer in today’s marketplace. Our investment in EdeniQ is another step in our vision to enhance the competitive advantage of our ethanol production facilities.”

advanced biofuels, biochemicals, biomaterials

South Dakota – Home to Substandard Gas?

Joanna Schroeder

South Dakota could continue to be the home of substandard gas if refiners have their way. If the American Coalition for Ethanol (ACE), a national ethanol organization based in Sioux Falls, South Dakota has its way, it will not become the dumping grounds for low-octane fuel. Historically the state has allowed 85 octane gasoline for sale in the western part of the state but it has been discovered to be “leaking” into other areas. Ironically after a review of state laws and rules by the SD Weights and Measures it was determined that the sale of this gas is illegal.

ACE Executive Vice President Brian Jennings asks that the state follow the letter of the law and resist making 85 octane gasoline available throughout the state.

“We strongly oppose this recommendation to bend the rules so refiners can pad their profits by dumping substandard gasoline into South Dakota,” Jennings said. “Eighty-five octane gasoline is bottom of the barrel fuel that according to vehicle manufacturers will reduce fuel economy and performance, increase harmful tailpipe emissions, and could damage engines.”

The organization has learned that the State would require a label to inform consumers that the 85 octane fuel may not meet engine manufacturer’s minimum standards for vehicle performance. Before any changes take effect, however, the state will open the discussion up for public input. ACE along with other ethanol and corn grower stakeholders plan to submit comments in opposition of the rule change.

“Even though ethanol’s blending octane is 113, the highest and cleanest source of octane on the market, when this low-grade gas is blended with 10 percent ethanol we are very concerned ethanol will be mistakenly blamed for engine performance problems,” continued Jennings. “That is an unacceptable consequence for South Dakota’s ethanol industry and thousands of the state’s residents and farmers who have invested in ethanol production.”

biofuels, Ethanol, Oil

Sports Industry Looks to Solar

Joanna Schroeder

Soccer teams in Maryland will now be playing games with the help of the sun. Solar Energy World has been contracted to install a solar energy system in Soccer Dome II in Harmans, Maryland. The system will include the installation of 546 solar panels paired with a 126 kWh photovoltaic grid-interactive system over 13,067 square feet of roof space. When the two solar technologies are pared together, they are estimated to generate 130,000 kWh of electricity. The projected is expected to be completed by the end of June.

“We’re installing the system because we’re confident it will yield double bottom-line benefits by reducing our carbon footprint and our utility bill,” said Soccer Dome President Clif Everett.

The solar energy will be hooked into the city’s grid and produce enough energy to offset nearly 85 percent of the Soccer Dome’s energy needs as averaged over a total year. In summer months when the system is anticipated to generate more electricity than the stadium needs, the excess will be sold to BGE. Many sports complexes across the country are adding solar energy to their green mix.

Solar Energy World Vice President Geoff Mirkin said of the project, “Forward-thinking organizations, like Soccer Dome, that increase our region’s energy production by installing solar panel systems have a vital impact on their surrounding communities. More businesses and organizations are looking to cut costs and resources needed to build and operate sports venues. When they find ways to do so while reducing their environmental impact, they enhance the return on investment tenfold. It’s a real win-win situation.”

Electricity, Energy, Solar