Ethanol Groups Help with New HBIIP Grants

Cindy Zimmerman

Trail’s Travel Center in Albert Lea, Minnesota was one of the recipients of grants announced Thursday as part of the Higher Blends Infrastructure Incentive Program, or HBIIP. They were helped out in the application process by the Renewable Fuels Association (RFA).

“We would like to sincerely thank the Renewable Fuels Association and Cassie Mullen for their incredible support and guidance throughout the USDA HBIIP application process,” said Rocky Trail, owner of Trail’s Travel Center. “To our surprise and delight they handled almost every aspect of the process and at the end of the day because of their assistance we ultimately walked away with a winning application and were granted 100% of the funds we applied for. Because of their support, in the very near future Trail’s Travel Center, the largest truck stop in the state of Minnesota, will expand even further with the exciting addition of higher blends of ethanol.”

Listen to Trail’s comments at the announcement Thursday.
Rocky Trail, owner of Trail's Travel Center, Albert Lea, MN

Secretary Perdue also visited a Casey’s location in Ankeny, Iowa yesterday with Senator Chuck Grassley (R-IA).

American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty, who has been helping many retailers with the HBIIP application process, attended that event.

“ACE thanks Secretary Perdue for his leadership on HBIIP,” Lamberty said. “We were happy to play a part in helping several marketers work through the application process, including a long-time Nebraska retailer, who applied to add 11 more E15 and flex fuel sites, and to assist San Diego E85 wholesaler Pearson Fuels as they applied for HBIIP funds for 122 California retail E85 locations. We’re pleased both companies were approved to receive HBIIP funding.”

Sen Grassley and Secy Perdue announce HBIIP grants in Iowa
ACE, Audio, Ethanol, Ethanol News, Retailers, RFA

REG Plans Expansion of Louisiana Renewable Diesel Plant

Cindy Zimmerman

Renewable Energy Group, Inc. has announced plans for a capacity expansion of its Geismar, Louisiana biorefinery by 250 million gallons annually to 340 million gallons per year. Construction should begin in mid to late 2021 with target mechanical completion date in late 2023.

“REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” said Cynthia (CJ) Warner, President & CEO of REG. “The state of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project.”

REG expects the expansion will require approximately $825 million in capital investment and is committed to supporting jobs and economic development in the communities in which it operates. REG Geismar was the first renewable diesel plant built in the US and was acquired by REG in 2014. REG made additional improvements to the plant, taking its initial 75-million gallon nameplate facility up to 90-million gallons per year of demonstrated capacity.

REG, renewable diesel

Meet New RFA Chair Jeanne McCaherty

Cindy Zimmerman

Jeanne McCaherty (right) on a tour of Guardian Energy with MN agency commissioners in 2019

The new chairperson of the Renewable Fuels Association (RFA) has only been CEO of Guardian Energy Management since 2016, but Jeanne McCaherty has become an industry leader in that very short time. In addition to serving on the board for RFA, she also serves on the Board of Directors for the Renewable Product Marketing Group and the Minnesota Biofuels Association.

Prior to joining Guardian Energy, McCaherty held several senior leadership roles at Cargill, and she holds a master’s degree in biochemistry from the University of Missouri.

McCaherty is taking on the leadership role at RFA during one of the most challenging times in the history of the ethanol industry. In this interview, she discusses the current state of the industry and priorities for RFA moving beyond 2020.

Listen to the interview here:
Interview with Jeanne McCaherty, CEO of Guardian Energy Management 10:45

Audio, Ethanol, Ethanol News, RFA

USDA Announces New Biofuels Infrastructure Grants

Cindy Zimmerman

USDA Secretary Sonny Perdue was in Albert Lea, Minnesota on Thursday to announce $22 million out of the up to $100 million in grants available to increase American ethanol and biodiesel sales under the Higher Blends Infrastructure Incentive Program (HBIIP) to recipients in 14 states. The initial $22 million in HBIIP investments are projected to increase ethanol demand by nearly 150 million gallons annually.

Congressman Jim Hagedorn (R-MN) and Minnesota Farm Bureau President Kevin Paap joined Secretary Perdue at Trail’s Travel Center in Albert Lea, one of the grant recipients. During the announcement, the Secretary assured the industry that the administration is committed to maintaining the Renewable Fuel Standard (RFS). “Those small refinery waivers are absolutely off the table,” said Perdue. “Fifteen billion gallons will be 15 billion gallons.”

Listen to their comments here:
HBIIP Grants announced in Minnesota 11:42

USDA is funding projects in California, Florida, Iowa, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, Ohio, Utah and Wisconsin and will be announcing the remaining HBIIP investments in the coming weeks.

Audio, Biodiesel, Ethanol, Ethanol News, USDA

Ethanol Exports Rise in August

Cindy Zimmerman

U.S. ethanol exports were 35% higher in August, rising to 100.7 million gallons (mg), the largest volume since March, according to Renewable Fuels Association Senior Analyst Ann Lewis.

Shipments across the border to Canada accelerated 20% to a three-year high of 36.0 mg, equivalent to 36% of total U.S. ethanol exports, while sales to India declined by 20% to 10.5 mg. The mix of larger customers readjusted in August with Nigeria (9.8 mg, up from zero), Colombia (8.6 mg, up from zero), and Mexico (7.1 mg, +78%) rounding out the top five global markets. South Korea (5.9 mg, -24%), Peru (5.6 mg, +340%), and the Philippines (4.0 mg, -36%) were other sizable customers of U.S. ethanol. Brazil returned to the market after a two-month hiatus, but coming in at just 3% (1.9 mg) of the volume purchased in January. Global year-to-date exports of U.S. ethanol totaled 905.4 mg, or 10% less than this time a year ago.

Meanwhile, imports were up as well, as they have been all year. The U.S. imported 35.6 mg of cane ethanol from Brazil—nearly triple the volume entering the country in July. Year-to-date imports total 93.1 mg, or 11% more than this time a year ago.

Exports of the ethanol animal feed co-product dried distillers grains (DDGS) were down six percent in August to 1.02 million metric tons (mt). “While southbound shipments tracked 14% lower (138,817 mt), Mexico remained our chief DDGS market for the second consecutive month. Sales perked up in Vietnam (up 22% to 131,854 mt) but scaled back in South Korea (111,048 mt, -8%) and Turkey (80,288 mt, -44%). A record 61,492 mt U.S. DDGS shipped to New Zealand, while other larger markets included Indonesia (60,061 mt), China (50,717 mt—the largest exports in more than three years), Thailand (42,183 mt), Ireland (40,842 mt), and Canada (40,001 mt). Worldwide U.S. DDGS exports for the first eight months of the year were 7.08 million mt—trailing 3% behind last year at this time.”

Ethanol, Ethanol News, Exports, RFA

RFA Elects First Woman Chairperson

Cindy Zimmerman

Jeanne McCaherty, CEO of Guardian Energy Management LLC, was elected chairperson of the Renewable Fuels Association (RFA) this week, becoming the first female chair in the organization’s history, and first among any national ethanol trade association. The election occurred at RFA’s annual membership meeting, held virtually this year due to the COVID-19 pandemic.

As CEO of Guardian Energy Management, McCaherty, of Prior Lake, Minn., provides executive management for Guardian Energy LLC, Guardian Energy Holdings LLC, and Hankinson Renewable Energy LLC, three leading ethanol biorefining businesses. She has a master’s degree in biochemistry from the University of Missouri and serves on the Board of Directors for the Renewable Product Marketing Group LLC, and the Board of Directors for the Minnesota Biofuels Association. McCaherty, a longtime proponent and advocate for low-carbon renewable fuels, also serves on the Minnesota Governor’s Biofuels Council to develop recommendations to increase the incorporation of biofuels in transportation fuels in Minnesota. She succeeds Neil Koehler, co-founder and co-CEO of Pacific Ethanol, in chairing the RFA Board.

Erik Huschitt, CEO of Badger State Ethanol, was elected as the RFA board’s Vice Chairman. Huschitt, of Monroe, Wisc., has been with Badger State since January 2002 and currently serves as president of the Wisconsin Biofuels Association. The RFA board also re-elected Treasurer Charlie Wilson, Trenton Agri Products; Secretary Rick Schwarck, Absolute Energy; and President Geoff Cooper, RFA’s Chief Executive Officer.

Ethanol, Ethanol News, RFA

Ethanol Remains Top Priority with New NCGA President

Cindy Zimmerman

It’s a new year for the National Corn Growers Association (NCGA) with new president John Linder of Edison, Ohio who took over the post on October 1.

Linder, along with his brother, Mike, and wife, Cheryl, run a fifth-generation farm raising corn, soybeans, soft red winter wheat and soybeans for seed in central Ohio. In addition to traditional row crop farming, he also has livestock experience. Previously, Linder served as the Corn Board liaison to the Market Access Action Team, on the Resolutions Committee and chaired the Finance and Engaging Members Committees. Additionally, he represented NCGA at the National Coalition for Food and Agriculture Research and the National Corn-to-Ethanol Research Center.

In a virtual press availability the day he took over as president, Linder took questions from the ag media, many of them pertaining to ethanol, the Renewable Fuel Standard, and EPA’s handling of small refinery waivers. Linder says he has already discussed the importance of implementing the Tenth Circuit Court decision on waivers with EPA Administrator Andrew Wheeler and will be meeting with him again this week on a farm in Ohio. “It’s the law, it was in the original RFS and the Tenth Circuit Court agreed with us so that’s what we need to remind him everyday that we have to obey the law.”

NCGA president John Linder press conference

Audio, biofuels, corn, EPA, Ethanol, Ethanol News, NCGA

Ethanol Production and Stocks Hit Low Levels

Cindy Zimmerman

The latest Energy Information Administration data analyzed by the Renewable Fuels Association shows a significant drop in ethanol production and stocks for the week ending September 25.

According RFA, ethanol production scaled back by 2.8%, or 25,000 barrels per day (b/d), to 881,000 b/d—equivalent to 37.00 million gallons daily and the smallest output in fifteen weeks. The four-week average ethanol production rate declined 1.2% to 913,000 b/d, equivalent to an annualized rate of 14.00 billion gallons (bg).

Ethanol stocks dropped by 1.5% to 19.7 million barrels, which was 15.2% below year-ago volumes and the smallest reserves since the end of 2016. Inventories thinned across all regions except the Gulf Coast.

In addition, gasoline demand remains 6.7% lower than a year ago, and refiner/blender net inputs of ethanol at 840,000 b/d, equivalent to 12.88 bg annualized, was 9.0% below the year-earlier level as a result of the continuing effects of the COVID-19 pandemic.

Ethanol, Ethanol News, RFA

RFA Pleased with Progress on COVID Relief

Cindy Zimmerman

The House of Representatives passed another COVID economic relief package last week which provides for $2.2 trillion in coronavirus relief and includes an important provision to help renewable fuel producers impacted by the pandemic. The package includes the Renewable Fuel Reimbursement Program provision which, if passed into law, would provide a 45-cent-per-gallon payment for qualified fuel produced by eligible producers from Jan. 1 through May 1 of this year.

Renewable Fuels Association (RFA) President and CEO Geoff Cooper says the legislation represents a “potential lifeline for the 350,000 men and women whose jobs depend on a healthy and vibrant ethanol industry.”

“Just recently, a study by university economists found that ethanol producers will experience roughly $8 billion in losses this year due to the pandemic’s impact on world fuel markets,” said Cooper. “While market conditions have improved since the spring, the ethanol industry is still struggling to fully recover from the pandemic, and ethanol producers across the country remain under financial stress.”

The package is considered dead on arrival in the Republican controlled Senate, which is on break now until Oct. 19 after three Republican senators tested positive for COVID-19. The revised Heroes bill is independent of ongoing negotiations on a different package between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin, which would result in a new bill that would need to be separately drafted and voted on in both houses.

Ethanol, Ethanol News, RFA

Biodiesel Industry News

Cindy Zimmerman

The National Biodiesel Board welcomes Matt Herman as the organization’s new Director of Environmental Science. Previously, Herman held positions with the Biotechnology Innovation Organization (BIO) and as Manager of Sustainability for Renewable Energy Group. As Director of Environmental Science, Matt will work closely with NBB’s advocacy team and the membership to ensure that laws and regulations properly reflect the sustainable nature of biodiesel products.

Also this week, NBB welcomed the Renewable Energy Group‘s announcement that Bob Kenyon will be joining the company as Vice President, Sales & Marketing effective September 30, succeeding Gary Haer following his decision to retire in March of next year after 20 years with the company. Haer served on the National Biodiesel Board for many years and became the first biodiesel producer to be elected Chairman in 2011.

“Gary helped see our industry through some challenging times and his steadfast leadership as our former Governing Board Chair was exactly what we needed,” said NBB CEO, Donnell Rehagen.”His passion and advocacy for biodiesel, renewable diesel, and agriculture in general, helped our industry grow to be nearly 3 billion gallons today. We all owe a debt of gratitude to Gary for his dedicated and selfless service to our industry.”

Kenyon brings deep knowledge of the oil and gas industry with more than 26 years of experience in fuels operations and downstream marketing. Most recently, Kenyon served as President of Atlas Oil Company in Taylor, MI. Atlas Oil Company is one of the largest fuels distributors in the country, delivering over 1 billion gallons of fuel annually to customers in 49 states. As a member of the senior management team, Kenyon will lead the teams that oversee the sales, marketing and customer care for REG’s high quality products including biodiesel, renewable diesel, REG Ultra Clean® and blended fuels.

Biodiesel, NBB, REG