NEC 2027

Grading The Secretary of Ag’s Mid Term

Chuck Zimmerman

What grade did you give U.S. Secretary of Agriculture Tom Vilsack for his mid-term? I think the results of our last ZimmPoll show how difficult it is to please everyone. We asked the question, “What mid-term grade would you give Ag Sec. Vilsack?” The votes for an A and an F were the highest and equal. 24% give him an A while 24% give him and F. Those grades are followed by 20% giving him a B, 19% a D and 13% a C. If you feel strongly about a certain grade feel free to leave a comment about why. We love getting your opinions and comments lets you freely express them!

So, let’s look at our newest ZimmPoll question, “How should farmers respond to critical documentaries such as Food Inc.?” The results of this question will be published at the start of the 2011 Agri-Marketing Conference next week and I think the results will be of real interest to agrimarketers attending. If you have a different idea than one of the choices we’ve presented then please feel free to comment. Thanks your your participation.

And if you have any questions you want to suggest for future ZimmPolls please let us know.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Proposed Indiana Biodiesel Plant Gets Green Light

John Davis

A planned $165 million biodiesel and soybean-processing facility in Indiana got a boost when a local commission approved the company building a storage facility so its air quality permit will stay current.

This article from the Fort Wayne News-Sentinel says Ultra Soy of America got approval to put up a 21,450-square-foot steel storage building at its site near South Milford:

Gary Pipenger, founder of Ultra Soy of America, said the company needs to start building at 7500 County Road 700 South near South Milford before April 15 or its air quality permit will expire.

The building will have no plumbing or sewer and only a few lights. It will not be used soon, and is being built solely so the company can complete the project before the permit from the Indiana Department of Environmental Management Air Quality office reaches its five-year limit.

This means the project, now estimated to cost around $4 million, will need to be completed in two years. Ultra Soy will also build a parking lot and stone drive to connect it to the road.

Ultra Soy laid the groundwork to build the biodiesel and soybean crushing facility in 2007.

The plant was expected to produce 60 million gallons of biodiesel fuel a year, eventually doubling production to 120 million gallons annually, making it one of the largest facilities in America.

Company officials say they were on track in 2009 to get all the funding done but were sidetracked when the economy went south.

Biodiesel

Recovering Ethanol From Waste Water

Joanna Schroeder

R3 Fusion, Inc. has announced the availability of its commercial system for recovering ethanol from waste scrubber water. The technology is coined the SPaCeRTM. The system is designed to process 50 gallons per minute of scrubber waste generated from a 50 million gallon per year (MMGY) ethanol plant and the first modular system will be fully operational this month.

Dr. Roshan Jachuck, the inventor of the SPaCeRTM technology and CTO of R3 Fusion said, “We estimate that over $400 million of ethanol can be recovered each year from the waste water in U.S. ethanol facilities alone. The unique engineering and process technology incorporated in our systems provides, to our knowledge, the most economical, energy efficient means available to capture that critical element of our national energy equation.”

The SPaCeRTM technology was developed to address the increasing worries about the supply of fresh water. According to R3 Fusion, less than 1 percent of the planet’s water is fresh water and available for human use. Therefore, the company believes the need to reuse, recycle and remediate contaminated and waste water steams is essential, and they along with other companies worldwide are developing technologies to extend the water supply.

“We are very excited about the launch of our SPaCeRTM technology and the enormous implications we believe it will have on global water supplies,” concluded Keith Blakely, CEO of R3 Fusion. “The interconnectedness of our water, energy, and environmental challenges is well-established and a system like ours that addresses all three simultaneously is, we believe, of great importance to the future of our planet.”

biofuels, Ethanol, Ethanol News

American Ethanol Heads to Texas

Joanna Schroeder

American Ethanol is heading to Texas this weekend for the NASCAR Nationwide Series race, the O’Reilly Auto Parts 300 at the Texas Motor Speedway on April 8th beginning at 8:30 pm EST on ESPN2. While the ethanol logo is on all the race cars, eyes will be on the No. 9 Toyota Camry driven by Kenny Wallace, who is sponsored for the season by the ethanol industry in partnership with the National Corn Growers Association (NCGA).

“It is an honor to be chosen as an American Ethanol spokesperson,” said Wallace who drives for RAB Racing. “I am very passionate about this subject and excited to spread true knowledge about American Ethanol throughout the United States. I’m proud and excited to go to Texas with new sponsor American Ethanol, and most of all I’m looking forward to getting my 10th NASCAR Nationwide Series win.”

During the entire 2011 season, all three of NASCAR’s national touring series will be racing on Sunoco Green E15, a blend of 15 percent corn-based ethanol and 85 percent racing fuel.

NCGA President Bart Schott noted, “Having Wallace as the driver is a great benefit. The RAB Racing team is racing very competitively this season and they are proving to be great proponents for Sunoco Green E15. Kenny understands the important economic and environmental contributions of the nation’s ethanol producers and family corn farmers. As a passionate and media-savvy spokesman, he is helping us reach millions of driving consumers with a positive message about domestic ethanol.”

As gas prices continue to rise across the nation, the ethanol industry stresses that ethanol is a commercially-viable alternative that America currently has to strengthen the nation’s energy independence. Studies have shown that for every $1 sent overseas for oil, $1.55 leaves the U.S. economy. The industry is using NASCAR as a platform to expose 80 million people to the benefits of ethanol while linking millions of American farmers with the sport of NASCAR.

“We’re proud that American Ethanol’s partnership with the RAB Racing team will help educate NASCAR fans about ethanol’s benefits for our nation’s environment, economy, and energy security,” concluded Tom Buis, CEO of Growth Energy. “There’s no sport more American than NASCAR and there’s no fuel more American than ethanol.”

American Ethanol, Ethanol, Racing

Kansas Ethanol Producers Visit DC

Cindy Zimmerman

Growth EnergyA delegation of six Kansas ethanol supporters are in Washington D.C. this week for a series of meetings with members of Congress.

Growth Energy CEO Tom Buis welcomed the group’s visit. “Kansas is a crucial, steadfast ally for the American ethanol industry, and we are pleased that so many Kansans have made the trip to Washington to educate their members of Congress about the ways ethanol contributes to the state and our country,” said Buis.

The six member group includes Steve McNinch of Western Plains Energy, Greg Krissek of ICM, Inc., Tom Willis of Conestoga, Mike Erhart and Monte Abell of Prairie Horizon, and Mike Chisalm of Kansas Ethanol. “It’s crucial that our representatives in Washington understand the benefits of ethanol – that it creates badly needed jobs in Kansas, provides an excellent return on taxpayer investment by keeping gas prices down, and contributes to our rural economies,” said Greg Krissek, ICM Director of Governmental Affairs, and a member of the Growth Energy board of directors. “Ethanol is not a ‘someday’ fuel – it’s here today, making our nation and our economy stronger. We can do even more by opening up the fuels market and giving consumers access to more ethanol.”

During their visit, the group will meet with Sens. Jerry Moran (R-KS) and Pat Roberts (R-KS) and Reps. Lynn Jenkins (KS-2), Kevin Yoder (KS-3), Mike Pompeo (KS-4) and Tim Huelskamp (KS-1), to help raise awareness about ethanol and its role in reducing our nation’s dependence on foreign oil, creating jobs, keeping gas prices down and strengthening our economy. The meetings will focus on Growth Energy’s proposal to reform the transportation market by developing the infrastructure to deliver ethanol to consumers. During their visit, the delegation will also attend a Policy Issues briefing conducted by Growth Energy staff and meet with the Democratic and Republican staffs of the House Agriculture Committee.

Ethanol, Government, Growth Energy

Ethanol Production Up, Demand Down

Cindy Zimmerman

Ethanol production started the year strong, but demand is much weaker, according to the latest figures.

The first monthly ethanol production data for 2011 shows continuing strong production numbers. According to the Energy Information Administration (EIA), monthly ethanol production for January 2011 was just over 920,000 barrels per day (b/d), or 1.2 billion gallons for the month. That’s up slightly from the previous month, but is over 100,000 b/d more than the January 2010 production of more than 818,000 barrels per day. If that continues at the same pace this year, production would top 14 billion gallons. EIA also reports fuel ethanol imports of 1.4 million gallons in January.

Renewable Fuels Association LogoHowever, ethanol demand in January, as calculated by the Renewable Fuels Association (RFA), showed a dramatic drop.

Stocks for ethanol rose dramatically to more than 868 million gallons, an increase of more than 114 million gallons from the month prior.

As a result of the increase in stocks, total demand for ethanol as calculated by the RFA dropped precipitously to 832,000 b/d. That is down 9% from 918,000 b/d in December 2010. Total demand includes exports, which the EIA is reporting for the first time. According to EIA data, January exports of ethanol were more than 57 million gallons. Excluding exports, domestic demand for ethanol stood at 788,000 b/d.

Ethanol, Ethanol News, RFA

Latest on E-xchange Blog

Cindy Zimmerman

Renewable Fuels AssociationThe Renewable Fuels Association (RFA) has been on a roll lately with a series of timely topical posts on the E-xchange blog.

Who Gets Your Food Dollar? Matt Hartwig writes about the latest report from USDA’s Economic Research Service on the farmers’ share of the food dollar, which is now estimated to be less than 12%. “So, if the farm value of each food dollar is actually decreasing, and corn demand and price are even smaller factors in food price determination than previously thought, what is driving American food bills higher? The simple answer is and has been energy.”

States Take Polar Opposite Stances on Ethanol Use – Hartwig highlights the two very different approaches that legislative bodies in Nebraska and New Hampshire have taken in dealing with America’s dependence on imported oil.

EPA Details Legal Avenues for E15 Sales – RFA president and CEO Bob Dinneen writes about EPA’s guidance for retailers to appropriately sell ethanol blends.

More Psuedo-Science and the Preposterous Claims of Anti-Ethanol Activists – Geoff Cooper takes apart a report “published by the controversial and discredited Journal of American Physicians and Surgeons (which) claims that biofuels expansion is increasing hunger and poverty-related health risks in developing nations.”

Ethanol, RFA

Pennsylvania Biodiesel Plant on Track for Record Year

John Davis

One of the country’s busiest biodiesel plants is on track to have a record year.

This article from the Erie (PA) Times-News says Hero BX was part of a recent USDA tour checking out the plant’s success:

Operating 24 hours a day, 365 days a year, the plant on Erie’s lakefront is on track to produce 40 million gallons of biodiesel this year, said Chris Peterson, a vice president for Hero.

The plant, which began operating in November 2007, has a rated capacity of 45 million gallons a year. Peterson said that capacity is based on running feedstock of virgin cooking oil.

A more typical batch of ingredients — 70 percent animal fat, including catfish oil and poultry fat, and 30 percent used cooking oil — reduces the plant’s capacity to about 40 million gallons.

USDA officials say plants such as Hero promote energy self-sufficiency and are good for the rural economy.

Biodiesel

ADM Acquires Missouri Biodiesel Plant

John Davis

Agribusiness giant Archer Daniels Midland is acquiring Prairie Pride’s soybean crushing and biodiesel facility in Deerfield, Mo., a biodiesel plant idled since early 2010. This ADM press release says the company will form a partnership with Prairie Pride on the biodiesel side of the house.

“The acquisition of Prairie Pride’s soybean facility and partnership for the biodiesel business were attractive to us because they are aligned with our growth strategy and fit well within our integrated business model,” said Matthew J. Jansen, president, Global Oilseeds. “We look forward to working with the 1,000 farmers of Prairie Pride to transform soybeans into food, feed and fuel products used by consumers and businesses around the world every day. And we look forward to becoming a part of the Vernon County community.”

Prairie Pride officials say that a long-term relationship with ADM will give their members “the greatest potential to receive returns on their investment without the necessity of infusing more capital into Prairie Pride.”

Biodiesel, Soybeans

Biofuels Industry On The Move

Joanna Schroeder

The biofuels industry is on the move.

Cogent BioFuels, an ethanol marketer based in Chesterfield, Missouri, has announced that Casey Carmondy will be the new director of logistics and business development. Most recently, Carmondy worked with CSX-Agriculture Marketing Group and has nearly 10 years of experience in servicing rail shippers including shipping ethanol.

Marty Lyons, President of Cogent said, “We are delighted to have a person with Casey’s customer focus and experience with the premier Class 1 railroad that personifies excellence in customer service. As we expand the Cogent marketing platform; transportation and logistics are critical components of our core strategy to offer value and reliability to the ethanol producers as their inside sales and logistics team.”

In other news, POET has hired several new biorefinery general managers. The GM’s at each facility will be responsible for supervising professional, technical and support staff at the plant as well as ensure efficient production. The GM will also be tasked with making sure the plant meets all rules and regulations.

Gary Eischied is the new GM at POET Biorefining – Gowrie (Iowa), and before joining POET worked for more than 35 years at Bridgestone Firestone in several management positions. Chris Oehler is the new GM for POET Biorefining – Lake Crystal (Minn.), and before joining the company worked for more than 10 for Del Monte Foods. While in this job he held several positions including plant manager. Ken Osmonson is the new general manager at POET Biorefining – Ashton (Iowa). Prior to joining the POET team, he spent over 26 years in manufacturing and operations management positions in the flexible packaging industry and the U.S. Army.

Osmonson said of his new position, “I am pleased to inherit a fantastic team and an efficient organization at POET Biorefining – Ashton. This type of success is a result of the support that this plant has received since its first grind. I believe that ethanol is the only viable alternative to oil. It is the renewable energy source that can cut our ties to foreign oil if given the chance to compete on a level playing field.”

 

biofuels, Ethanol