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

Ethanol Meets the Need for High Octane

Cindy Zimmerman

Dan Nicholson has been with General Motors since 1982 and was appointed vice president, Global Electrification, Controls, Software and Electronic Hardware in January 2019. He is responsible for all electrified propulsion products including batteries and electric drive units. He is also responsible for all electronic control systems and strategies, software and associated electronic hardware for all General Motors products globally.

Nicholson is also a proponent of higher octane in the U.S. liquid motor fuels market. “For that reason, I’m very glad to be here to discuss the future of transportation and the urgency around needing to work together now to ensure a strong, vibrant future for all of us,” said Nicholson.

Listen to Nicholson’s address to the National Ethanol Conference about how auto makers and ethanol producers can work together toward the goal for a higher national octane standard.

NEC19 Daniel Nicholson, GM Global

2019 RFA National Ethanol Conference Photo Album

Audio, Car Makers, Ethanol, Ethanol News, National Ethanol Conference, RFA

Ethanol Good for State Economies

Cindy Zimmerman

Two of the biggest ethanol producing states in the country continue to see benefits to their economies from the industry.

A recent impact study by University of Nebraska-Lincoln (UNL) economists found that Nebraska’s ethanol production capacity increased by 23 percent since 2014, and continues to generate significant economic impact for the state, which is the second largest producer of ethanol behind Iowa.

“The state sees what economists describe as an economic ‘bounce’ when we take advantage of the added value when grain is converted to food, fuel, fiber, renewable chemicals and bio-products,” said Sarah Caswell, administrator of the Nebraska Ethanol Board.

As of 2017, Nebraska’s ethanol production capacity was 2.558 billion gallons per year, with 1,453 full-time employees at 24 facilities. This represents an increase of 481 million gallons annually and an additional 152 full-time employees compared to 2014. In 2016, the total labor income impact – including direct and indirect jobs – was $275 million earned from an estimated 3,509 jobs for an average annual earnings of $78,300. Ethanol plant jobs provide significantly higher-wages compared to other manufacturing positions and are uniquely located in rural communities.

In Minnesota, which is ranked fourth nationwide in ethanol production, the industry contributed $2.31 billion to the state’s gross domestic product (GDP) in 2018, according to a new study by ABF Economics.

“This study once again shows the importance of the ethanol industry to Minnesota’s economy,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

The study found that Minnesota’s ethanol producers produced 1.27 billion gallons of ethanol, 3.8 million tons of dried distiller’s grains with solubles (a high-protein animal feed) and 283 million pounds of corn oil (which is used for biodiesel production) in 2018, generating $6.9 billion in gross sales for Minnesota businesses and supported 20,137 jobs in 2018.

Ethanol, Ethanol News

South Dakota Farmers Union Celebrates E30 Day

Cindy Zimmerman

Farmers, ranchers and ethanol supporters from around South Dakota gathered in gathered in the state capitol of Pierre yesterday to advocate for agriculture and celebrate E30 day with Governor Kristi Noem.

Glacial Lakes Energy Cooperative members joined the South Dakota Farmers Union (SDFU) at the Capitol to thank Governor Noem for proclaiming February 19 as E30 Day in South Dakota and for her continuing support of the ethanol industry. During her State of the State Address, Noem committed to fueling the state’s fleet with E30.

“Farmers Union has been a strong partner in helping us advocate for higher ethanol blends because it’s good for South Dakota’s family farmers, ranchers and rural communities. And, let’s not overlook the clean air and health benefits,” explained Jim Seurer, CEO Glacial Lakes Energy Cooperative, pointing to a recent study, conducted by the consulting group Life Cycle Associates and commissioned by the Renewable Fuels Association, that finds greenhouse gas reductions from the use of biofuels has exceeded what the U.S. EPA has predicted by 37 percent.

Ethanol, Ethanol News

Kansas Ethanol Signs Agreement with Syngenta Enogen

Cindy Zimmerman

Syngenta has signed a three-year marketing agreement with Kansas Ethanol, LLC to use Enogen® corn enzyme technology at its 80 million-gallon ethanol plant in Lyons, Kansas.

Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and can help an ethanol plant significantly reduce the viscosity of its corn mash, improving plant performance. Numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.

Enogen corn will provide the Kansas Ethanol facility with an industry-leading enzyme for enhanced ethanol production, while also supporting local growers and the community. The Kansas Ethanol facility will be accepting its first load of Enogen grain this fall.

Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. To date, more than $100 million in premiums have been paid to Enogen growers. According to data from Iowa State University, these premiums create an additional $63 million in economic activity for a total of $163 million in cumulative economic benefit to the region.

Enogen, Ethanol, Ethanol News, Syngenta

Ethanol Continues Significant Contribution to Economy

Cindy Zimmerman

Despite facing regulatory and marketplace challenges in 2018, the ethanol industry continued to make a “remarkable contribution” to the nation’s economy, according to the latest analysis released last week at the Renewable Fuels Association’s (RFA) 24th annual National Ethanol Conference. The analysis, conducted by ABF Economics on behalf of RFA, found the industry supported nearly 366,000 jobs and generated nearly $46 billion in gross domestic product in 2018.

According to the analysis, the production and use of 16.1 billion gallons of ethanol in 2018:

Supported more than 71,000 direct jobs and almost 295,000 indirect and induced jobs across all sectors of the economy;
Added nearly $25 billion in income for American households;
Generated an estimated $4.8 billion in tax revenue to the Federal Treasury and $4 billion in revenue to state and local governments;
Supported more than 16,200 jobs and $6.3 billion in GDP through exports alone; and
Displaced an amount of gasoline refined from roughly 550 million barrels of imported crude oil

The analysis also estimated the impact of the ethanol industry on the state economy in top ethanol-producing states. Iowa, Nebraska, and Illinois were the top three states in terms of economic impacts, but states like Ohio, Kansas, Michigan, Texas, Missouri, California, and New York also benefited from ethanol plants’ contributions.

Last week’s National Ethanol Conference featured many speakers and sessions on the current state of the ethanol industry as well as the potential opportunities for future growth. Photos, audio and video from the conference can be found here:
National Ethanol Conference Virtual Newsroom

Ethanol, Ethanol News, National Ethanol Conference, RFA

Ethanol Report with #RFANEC Highlights

Cindy Zimmerman

Orlando was the site of the Renewable Fuels Association (RFA) 24th annual National Ethanol Conference February 11-13, 2019. As always, the event was loaded with headline speakers and information on the latest industry issues.

In this edition of the Ethanol Report, we have some of the highlights from #RFANEC, including comments from RFA president and CEO Geoff Cooper, former Sen. Tom Daschle, USDA Deputy Secretary Steve Censky, RFA’s Robert White, Paul Teutul Jr., RFA senior strategic advisor Bob Dinneen

Photos, audio and video from the conference can be found on this AgNewsWire virtual newsroom.

Ethanol Report from National Ethanol Conference

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Ethanol, Ethanol News, Ethanol Report, National Ethanol Conference, Renewable Fuels Association, RFA