Ethanol Report 10-16-20

Cindy Zimmerman

October 1 began a new fiscal year for the Renewable Fuels Association (RFA) and brought a new chairperson for the board.

Jeanne McCaherty, CEO of Guardian Energy Management, is the first female chair for the RFA and she is taking on the role during a challenging time with lots of optimism. In this edition of the Ethanol Report podcast, we have an interview with McCaherty talking about the current state of the industry and positive signs moving forward.

One of those positive developments is the awarding of grants from the USDA under the Higher Blends Infrastructure Incentive Program, or (HBIIP), to help grow domestic ethanol consumption. Included are comments from Agriculture Secretary Sonny Perdue, Sen. Chuck Grassley (R-IA), Rocky Trail of Trail’s Travel Center in Albert Lea, Minnesota, and an interview with RFA Director of Market Development Cassie Mullen.

Ethanol Report 10-16-20 (27:15)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA

POET Expansion to Provide for Sanitizer Production

Cindy Zimmerman

POET Biorefining-Alexandria broke ground Thursday on an expansion to accommodate the production of purified alcohol, which is a plant-based, fundamental ingredient in hand sanitizer and other cleaning products.

“At POET, our mission is to be good stewards of the Earth by converting renewable resources into bio-based alternatives to fossil fuel,” said Matt Braun, Senior Vice President and General Manager at POET. “With this in mind, a team at POET got together and worked around the clock to create a brand new, plant-based purified alcohol product. Purified alcohol is a fundamental component of hand sanitizer and other cleaning supplies, which saw unprecedented shortages earlier this year.”

The $25 million expansion project will provide for 30-35 million gallons annual production of purified alcohol.
The project is slated for completion in early 2021.

Ethanol, Ethanol News, POET

RFA Welcomes New Members

Cindy Zimmerman

The Renewable Fuels Association this week welcomed two new Associate Members.

Bushel is a mobile technology company, based in Fargo, N.D., that powers apps and websites that facilitate simple and efficient business communications and transactions between grain companies and growers.

“Being a part of the RFA empowers Bushel’s reach into the ethanol sector,” said Bushel Sales Manager Kevin Clausen. “We are excited to partner with the RFA and its members to bring technology solutions to the industry.”

Based in Bellevue, Wash., Ascensus Specialties is a chemical provider to industrial alcohol producers. It recently announced a technology solution that helps ethanol producers reduce acetaldehyde and acetal in ethanol streams to levels well below FDA requirements for sanitizers, and to minimize odors regardless of the ethanol’s feedstock.

“As challenges arose early in 2020 due to the COVID pandemic, the entire world recognized there was an immediate and increased need for personal hygiene products,” said Ascensus Specialties spokeswoman Brooke Schwartzel. “Joining the RFA is exciting for our team because we can continue to partner with ethanol producers to reach higher-value markets like hand sanitizer with low- to no-capital solutions.”

Ethanol, Ethanol News, RFA

NBB Announces New State Governmental Affairs Director

Cindy Zimmerman

The National Biodiesel Board (NBB) has announced a new state governmental affairs director with longtime director Shelby Neal departing the organization and Floyd Vergara assuming the leadership role in directing NBB’s nationwide program.

“While we are sad to see Shelby go after 12 tremendous years leading NBB’s state policy team, we could not be more thrilled to have someone of Floyd’s caliber on deck to take over this critical leadership role,” said NBB CEO Donnell Rehagen. “Floyd’s passion, work ethic, and vast regulatory experience will be a tremendous value to our membership as climate programs take center stage driving the market for low carbon fuels like biodiesel and renewable diesel now and into the future.”

Vergara opened NBB’s West Coast office in November 2019 after more than 32 years at the California Air Resources Board (CARB) in various top leadership positions. Most recently, he served as Chief of the Industrial Strategies Division and Assistant Chief of the Research Division. Over the years, Vergara oversaw a number of CARB’s key climate and air quality programs, including the Low Carbon Fuel Standard and Cap-and-Trade program, among others.

Neal will be departing NBB October 16 to take a position at Darling Ingredients as the company’s V.P. for Renewables and Energy Policy in its global headquarters office located in Irving, Texas. Vergara will assume Neal’s leadership position within NBB immediately following his departure.

Biodiesel, NBB

ACE Commends Argonne for GREET Model Updates

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is pleased with recent updates to the Greenhouse gas and Regulated Emissions and Energy use in Transportation (GREET) model made by U.S. Department of Energy’s Argonne National Laboratory scientists. The GREET model is widely recognized as the gold-standard tool used to audit the energy and environmental effects of transportation fuels such as ethanol and gasoline.

Notably, the 2020 updates include a new Feedstock Carbon Intensity Calculator to take inventory on how corn yields, fertilizer use, and agronomic practices on individual farms influence the lifecycle carbon intensity of ethanol and a new lookup table to estimate rates of soil carbon sequestration from different farming practices.

ACE CEO Brian Jennings says the updates will help farmers, ethanol producers, and government agencies better understand how farming practices play a pivotal role in reducing the overall carbon intensity of corn ethanol. “Given the growing support for new clean fuel markets at the state and federal level, particularly among Midwestern states, these timely updates to the GREET model should help us advocate for policies that give credit to farmers for practices which further reduce corn ethanol’s carbon footprint,” said Jennings.

In 2018, ACE published the White Paper “The Case for Properly Valuing the Low Carbon Benefits of Corn Ethanol” to spotlight the need for these kind of updates to the GREET model. Ron Alverson, ACE board member and main author of the 2018 White Paper, said the new Feedstock Carbon Intensity Calculator will be extremely helpful in evaluating the effect farming practices have on ethanol’s GHG emissions because it will account for corn yield and energy, fertilizer, and chemical use factors for individual farms instead of relying on default values.

ACE, corn, Energy, Ethanol, Ethanol News

Ethanol Emergency Response Webinars This Week

Cindy Zimmerman

The Renewable Fuels Association is offering two four-hour emergency management webinars this week in partnership with TRANSCAER and the Pipeline and Hazardous Materials Safety Administration.

The goal of these webinars is for attendees to gain a full ethanol and ethanol-blended fuel emergency response training experience that can be used immediately in the field. The training program will include the following elements: ethanol and ethanol-blended fuels, chemical and physical characteristics of ethanol and hydrocarbon fuels, transportation and transfer, storage and dispensing locations, fire-fighting foam principles, general health and safety considerations, and storage and pre-planning considerations.

The sessions will take place this week from 5 to 9 p.m. CDT Wednesday, Oct. 14, and noon to 4 p.m. CDT Thursday, Oct. 15. Final segments for the year are scheduled for Nov. 5 and 12. Certificates of Participation will be awarded to all registered attendees once the webinar has been completed. Click here for more information and registration.

Ethanol, Ethanol News, RFA, safety

Lallemand to Sponsor RFA Young Professionals Network

Cindy Zimmerman

Lallemand Biofuels & Distilled Spirits has partnered with the Renewable Fuels Association (RFA) as the title sponsor of the Young Professionals Network (YPN) in 2021. Lallemand Biofuels & Distilled Spirits (LBDS) is an industry leader in supplying fermentation products and value-added services to the ethanol industry.

“Education is an important part of our mission in serving the ethanol industry,” said Craig Pilgrim, Vice President of Marketing and New Product Development at Lallemand Biofuels & Distilled Spirits. “The Young Professionals Network is off to a great start in recruiting and creating a dynamic membership base. We’re eager to assist them in ensuring that this new program is a success and provide unique learning opportunities that allow the YPN members to grow within the ethanol industry.”

RFA launched the YPN in July to bring together innovative and dedicated young professionals in the ethanol industry who are 39 years old and younger, giving them the ability to develop their professional skills, grow their network in the renewable fuels industry, advance their respective businesses forward, and support the national agenda of the U.S. ethanol industry.

As of October 7, the YPN had 79 members from companies across the ethanol industry, including ethanol producers, product and service providers, state and federal trade organizations, commodity groups, and investment firms.

Ethanol, Ethanol News, RFA

USDA Lowers Corn Use for Ethanol

Cindy Zimmerman

USDA is now forecasting a slightly smaller corn crop compared to last month’s estimate, but still higher than last year.

According to the National Agricultural Statistics Service (NASS) October Crop Production report, corn production for grain is now forecast at 14.7 billion bushels, down 1 percent from the previous forecast but up 8 percent from 2019. Based on conditions as of October 1, yields are expected to average a record high 178.4 bushels per harvested acre, down 0.1 bushel from the previous forecast but up 10.9 bushels from last year. Area harvested for grain is forecast at 82.5 million acres, down 1 percent from the previous forecast, but up 1 percent from the previous year.

The October World Agricultural Supply and Demand Estimates reduced the amount of corn expected to be used for ethanol and feed and residual use, and lowered ending stocks. Corn supplies are forecast down sharply from last month on a smaller crop and lower beginning stocks. Corn used for ethanol is down 50 million bushels, based on weekly ethanol production data as reported by the Energy Information Administration into early October. The corn price is raised 10 cents to $3.60 per bushel.

corn, Ethanol, Ethanol News, USDA

2021 National Biodiesel Conference Goes Virtual

Cindy Zimmerman

Virtual conferences are now starting to be announced for 2021.

The 2021 National Biodiesel Conference & Expo will be virtual now January 18-21. The event will be accessible to everyone, sharing the industry’s message from coast to coast through a new format that will “RISE” to meet the needs of all attendees.

“Our industry is proving its strength and commitment to better, cleaner fuel through this time of uncertainty,” said NBB CEO Donnell Rehagen. “The biodiesel and renewable diesel industry have worked tirelessly to keep this industry growing, collaborating, and coordinated as we face this unique time together, and we can’t wait to kick off a new year in 2021 with our members and key industry partners during our first ever virtual conference, providing attendees a top shelf experience.”

The conference lineup is already being set with key discussion topics and industry insights and will still include crowd favorite mainstage and breakout sessions, as well as new opportunities to showcase industry businesses through high-visibility sponsorships like never before.

Register for the 2021 National Biodiesel Conference & Expo at biodieselconference.org.

Biodiesel, Biodiesel Conference, National Biodiesel Conference, NBB

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