Platts Proposes Chicago Ethanol Price Assessment Revision

Cindy Zimmerman

S&P Global Platts has made a proposal to revise the methodology for its Ethanol Chicago (terminal) price assessment to expand the delivery (offtake) options to include barge, rail and truck loading, effective May 1, 2019.

“By this proposal, we will expand delivery options for our Ethanol Chicago price assessment, reflective of the extensive feedback we received from market participants through our hosted events, in-person discussions and other dialogues,” said Ian Dudden, Global Content Director for Metals & Agriculture at S&P Global Platts, which is the leading independent provider of information and benchmark prices for the commodities and energy markets.

S&P Global Platts is also proposing to revise the standards of incrementablity for its Ethanol Chicago (terminal) assessment during the Market-on-Close (MOC) price assessment process, to better reflect current trading and pricing granularity. Platts is proposing that effective May 1, bids and offers may be improved by a maximum of 10 points per 15 seconds, from the current 25 points per 30 seconds.

All other aspects of the pricing methodology for the Ethanol Chicago (terminal) assessment would remain the same, including the specification, volume, timing and Renewable Identification Number (RINs) transfer mechanism.

S&P Global Platts is accepting feedback or questions via: americas_ags@spglobal.com and pricegroup@spglobal.com by March 30, 2019.

Learn more from S&P Global Platts.

Ethanol, Ethanol News

Targray Opens European Biodiesel Trading Desk in Geneva

Cindy Zimmerman

Biodiesel marketer Targray has announced the opening of its EU biodiesel trading desk in Geneva, Switzerland as part of a broader investment plan to meet demand for low-carbon fuels in the EU.

Targray’s EU biofuels business will be led by biodiesel trader Vincent Cariou. Prior to joining the company in 2019, Vincent worked for nearly 10 years at agricultural commodities company Cargill, helping optimize procurement and logistics for biodiesel, vegetable oil and soybean meal customers in the European Union.

The Targray Biofuels Division is a major international supplier of bio-based fuels with an extensive network of rail cars and fuel terminals to serve fuel retailers, distributors, traders and transportation firms in the U.S. and Europe.

Biodiesel, International, transportation

Ethanol’s Role in Securing a Low Carbon Future

Carrie Muehling

(L to R) Moderator: Chris Hessler, AJW, Inc.; Richard W. Corey, California Air Resources Board; Stefan Unnasch, Life Cycle Associates; Jonathan Male, U.S. Department of Energy; Brendan Jordan, Great Plains Institute

A panel discussion at the National Ethanol Conference tackled the topic of Ethanol’s Role in Securing a Low Carbon Future.

California Air Resources Board Executive Officer Richard W. Corey weighed in, sharing that there is no single solution to reducing emissions, but that he believes ethanol has been and will continue to be part of the answer.

“From an air quality standpoint, transportation in California represents 50 percent of our GHG emissions, 80 percent of our NOx emissions, and 95 percent of our diesel emissions,” said Corey. “We can’t get to our health-based air quality targets, we can’t get to our community-based safety standards, health-based standards in communities, or our GHG targets without effectively working in the transportation space.”

Corey said there has to be a multiple focus strategy when dealing with air quality and climate challenges, and collaboration and partnerships will be key moving forward. Great Plains Institute Vice President Brendan Jordan said carbon capture is a current focus within the ethanol industry.

“Capturing CO2 from an ethanol plant and storing it offers anywhere from a 40 to 60 percent carbon intensity reduction. For those of you selling ethanol into the California market or another market that’s involved in an LCFS or clean fuels policy, you know what economic value that can offer in addition to the economic value from selling the CO2.”

Jordan said infrastructure is the next hurdle for carbon capture as pipelines are necessary to move CO2 from ethanol plants to places that can use it. He said this is another area where public/private partnerships will be necessary to ensure progress.

Both speakers were part of a larger panel that also included Stefan Unnasch of Life Cycle Associates and Jonathan Male with the U.S. Department of Energy.

Listen to the entire panel discussion here: Panel Discussion at National Ethanol Conference

2019 National Ethanol Conference Photo Album

Audio, Ethanol, National Ethanol Conference

SD Farmers Union Challenges GM on Higher Octane

Cindy Zimmerman

The president of the South Dakota Farmers Union took issue with remarks made by a General Motors executive at the recent National Ethanol Conference that 98 RON (Research Octane Number) or higher gasoline was not feasible.

In a letter to General Motors Chair and CEO Mary Barra, Doug Sombke challenged GM vice president Don Nicholson’s claim that “98 RON fuel was a bridge too far” and urged the company to look at their own historical position of identifying 100 RON fuels as the right fuel for the 2020-2025 time frame.

With the Safe Affordable Fuel Efficiency (SAFE) rule currently being developed by EPA, the opportunity to raise the minimum octane standard and achieve significant mileage increases can be realized with a 100 RON/E30 fuel according to Sombke. Furthermore, he said the requirement that these fuels reduce carbon emissions is easily met with higher ethanol blends that are increasingly recognized as low carbon fuels. In his letter, he cited previous positions of GM and other automakers that a 100 RON fuel in optimized conventional vehicles could provide a 7% mileage increase while reducing CO2 emissions.

“The internal combustion engine is going to be the primary propulsion technology for decades, and the octane in today’s fuel is increasingly toxic and polluting”, said Sombke. “Ethanol is the most cost-effective and cleanest source of octane available and automakers need to join us in calling for higher blends, not lower.”

Sombke also cited the E30 challenge in South Dakota, and Governor Kristi Noem directing the state fleet to use E30 as evidence that higher blends are already being produced, distributed, and utilized.

Read more from SDFU.

Car Makers, Ethanol, Ethanol News, Octane

ACE Resumes Ethanol Forums for Mexico Retailers in 2019

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty traveled to Mérida, Mexico last week for the first ethanol technical information forum of the year for Mexican petroleum equipment installers and retailers. The forums are a joint effort of the U.S. Grains Council and the Mexican Association of Service Station Providers (AMPES) to inform Mexican petroleum marketers about opportunities in sourcing, marketing, and retailing ethanol-blended gasoline.

“These workshops continue to help more Mexican fuel marketers, equipment suppliers, and some government officials understand offering gasoline with 10 percent ethanol is a safe and economically sensible way to have cleaner air and provide less expensive options at the pump for drivers in Mexico,” Lamberty said. “‘The math’ of ethanol blends is undeniably attractive for station owners and consumers right now, and our goal this year will be helping businesses learn how they can obtain and transport our product to places where it can be blended and delivered to stations. Fuel equipment companies say the workshops have inspired interest from retailers and prospective wholesale distributors of ethanol.”

Located in the northwest part of the state of Yucatán, Mérida receives gasoline shipments at the port of Progresso, about 25 miles from the city. Lamberty visited six other Mexican cities in 2018 and will be doing more forums in the year ahead.

ACE will be attending the Commodity Classic this week in Orlando where they will be sharing information about this effort at their exhibit booth #2184 in the trade show.

ACE, Ethanol, Ethanol News, Exports

RFA Releases Three New Ethanol Education Videos

Cindy Zimmerman

The Renewable Fuels Association has released three new educational videos to help the public fuel their knowledge about renewable fuels like ethanol. The videos, debuted at RFA’s 24th annual National Ethanol Conference in Orlando, focus on the ethanol production process, facts about the industry and the benefits of renewable fuels, and testimonials about ethanol-blended fuels from avid motorcycle riders.

The Ethanol Process video gives consumers and students an inside look at how fuel ethanol is produced, with a virtual tour of sophisticated biorefineries that use state-of-the-art technologies to convert grains, beverage and food waste, cellulosic biomass and other feedstocks into clean, renewable fuel.

The Ethanol Facts video uses the latest data to highlight basic facts about the ethanol industry and its significant economic, energy independence, and environmental benefits.

Finally, the Ethanol & Motorcycles video offers first-hand accounts from bikers who share their experience with ethanol-blended fuels, as well as comments by Paul Teutul Jr., who highlights what he learned about ethanol while working on the custom-built RFA motorcycle, which was featured on the hit TV show “American Chopper.”

The videos are now available on the RFA website.

Ethanol, Ethanol News, National Ethanol Conference, RFA

GROWMARK Offers Pre-Blended E15 at More Terminals

Cindy Zimmerman

GROWMARK Energy is adding to the number terminals around the Midwest offering pre-blended E15, according to the Renewable Fuels Association, which has worked closely with the farmer-owned cooperative on related issues such as regulatory compliance and adoption of RFA’s Misfueling Mitigation Plan (MMP).

GROWMARK will now offer pre-blended E15 at Magellan terminals in – Bettendorf and Des Moines, Iowa; Carthage, Palmyra, and Springfield Mo.; Doniphan and Omaha, Neb.; Oklahoma City and Enid, Okla.; Fort Smith and N. Little Rock, Ark.; Heyworth, Ill.; Kansas City, Scott City, Topeka and Wichita, Kansas; and Sioux Falls, S.D.

These are in addition to the GROWMARK-owned terminals in Amboy, Ashkum, and Petersburg, Ill., Fort Dodge, Iowa, and St. Joseph, Mo. that began offering pre-blended E15 in November 2018.

“GROWMARK Energy continues to provide new opportunities for retailers and ultimately greater competition in renewable fuels that benefits consumers,” said RFA Vice President of Industry Relations Robert White. “RFA will continue to work with interested retailers serviced by these terminals to assist them with the transition to offering E15 at retail.”

White also points out that the terminals will only be able to offer E15 from Sept. 16-April 30, unless a formal rulemaking allowing a one pound RVP waiver is issued by summer.

E15, Ethanol, Ethanol News, GROWMARK, RFA

Ethanol Interests Comment on Canada Clean Fuel Standard

Cindy Zimmerman

The Renewable Fuels Association (RFA), Growth Energy, and the U.S. Grains Council (USGC) jointly submitted comments this week supporting the Canadian Clean Fuel Standard.

The comments to Environment and Climate Change Canada (ECCC) offered recommendations on how biofuels, like ethanol, can help reach the ECCC Regulatory Design Paper’s goal of reducing greenhouse gas emissions by 23 megatons by 2030.

“While there are several details that are yet to be determined, we support the laudable and achievable goal to reduce the carbon intensity of the liquid fuel stream by 11 percent, ultimately leading to a 23-megaton reduction in greenhouse gas emissions by 2030. We believe that by using low carbon biofuels such as ethanol, Canada can succeed in its own greenhouse gas reduction goals.”

The comments suggested expanding the current minimum blending requirement for biofuels from 5 percent to 10 percent nationwide. They also highlighted the importance of ensuring that the biofuels regulations put in place focus on promoting economic growth and securing a pathway to meeting Canada’s climate goals. These include improving upstream fossil fuel protocols on exports, limiting abuse of compliance flexibility, and allowing public comment and review of carbon intensity models.

Ethanol, Ethanol News, Exports, Growth Energy, RFA, Trade, USGC

SVPGlobal Buying White Energy Kansas Plants

Cindy Zimmerman

Global investment firm Strategic Value Partners and its affiliates (“SVPGlobal”) has agreed to purchase food ingredient and ethanol businesses located in Kansas from White Energy, headquartered in Frisco, Texas.

The purchase includes two integrated plants in Russell, Kansas: the nation’s largest vital wheat gluten manufacturing facility and one of the nation’s most cost-efficient ethanol production facilities.

With an annual production capacity of 56 million pounds, the Russell gluten facility is the largest North American producer of vital wheat gluten, a plant-based protein used as an ingredient in a number of attractive and high-growth food markets including baked goods, pet foods, and vegetarian and vegan foods. Russell’s premier food ingredient products, which will continue to be sold under the Heartland brand name, are purchased by many of the most iconic companies in the food and beverage industry.

The Russell ethanol facility, with a production capacity of 55 million gallons per year, is uniquely designed to consume the starch by-products generated at the adjacent gluten facility. As a result of that highly-efficient manufacturing process, the plant achieves some of the lowest unit costs in the ethanol industry, and is also rated as having the lowest carbon footprint of any facility of its kind in the United States by the California Air Resources Board. As a result, its production is sent to premium clean fuel markets where the plant receives attractive carbon credits.

Financial details of the agreement are confidential and the transaction is expected to close within 45 days.

Ethanol, Ethanol News, Grains

#RFANEC Features Ethanol Powered American Chopper

Cindy Zimmerman

The custom E85 motorcycle commissioned by the Renewable Fuels Association (RFA) last year and featured on the Discovery Channel’s American Chopper series was a big hit at the National Ethanol Conference last week, and so was the bike’s designer Paul Teutul, Jr.

The patriotic-themed motorcycle has been all over the country since it was first unveiled last June, but it was the first time many RFA members had the chance to see it in person. Next week, the bike will pay a visit to the 2019 Commodity Classic at the RFA booth.

Paul Jr. sat down on stage with RFA Vice President of Industry Relations Robert White to talk about how the project was born and what he learned in the development process about ethanol.

“There’s so many positive aspects of ethanol, from the way it supports farmers, the sustainability, the fact that we are making fuel here,…I was impressed from top to bottom,” said Paul Jr. “Overall it was one of the best experiences I’ve ever had working with a client.”

Listen to their conversation here:
NEC19 Paul Teutul Jr. conversation

Paul Teutul Jr. photo album

Audio, E85, Ethanol, Ethanol News, Motorcycle, National Ethanol Conference, RFA