Novozymes Bioenergy Sales Up

Cindy Zimmerman

Novozymes is reporting a five percent sales growth in the third quarter of 2018, including a 14% increase in the bioenergy sector of the company.

Novozymes reports that the strong growth momentum within enzymes for conventional biofuels in the first half of this year continued in the third quarter. Novozymes’ newly launched yeast product, Innova® Drive, posted good growth in the third quarter, and Latin America continued to perform well, supported by new starch-based ethanol production capacity coming online.

“Nine months into the year, I’m very pleased that Bioenergy continues to deliver strong; organic growth was up 14% and third-quarter growth was a touch better at 15%,” said Tina Sejersgård Fanø, Executive Vice President, Agriculture and Bioenergy. “We are happy to see that E15 in the U.S. now appears more likely to be implemented by the Environmental Protection Agency; there are still some legislative hurdles to be overcome, but longer term this is a good supportive measure for the U.S. ethanol industry, for Novozymes, and for the environment.”

Similar to the first half of 2018, U.S. and global ethanol production grew by an estimated 2% in the third quarter while trends with elevated inventories and tight margins for ethanol producers remain the same.

enzymes, Ethanol, Ethanol News, Novozymes

POET Moving Forward with New Indiana Biorefinery

Cindy Zimmerman

President Donald Trump’s decision to move forward with allowing year round sales of E15 is already spurring investment.

POET has announced it is moving forward with full construction of a new 80 million-gallon-per-year biofuel facility in Shelbyville, Indiana, with an expected completion date for the nearly $160 million facility of spring 2020.

“This is the right project in the right location at the right time,” POET CEO Jeff Broin said. “Farmers desperately need the income boost from this new market for grain, and Pres. Trump’s recent announcement of year-round E15 sales has the biofuels industry poised for new growth and prosperity. Shelbyville is leading the way for future production to meet new E15 demand. We’re excited to partner yet again with Indiana to create a cleaner, healthier environment for our children and grandchildren.”

POET Biorefining – Shelbyville will be the 28th starch biofuel plant in POET’s network, and the fifth in Indiana. It will add 45 full time jobs and $110 million in annual corn purchases for farmers in the area, primarily within a 30-mile radius. POET plans to start hiring for full-time positions in spring 2019.

E15, Ethanol, POET

NFU Radio Ad Urges E15 Action

Cindy Zimmerman

The National Farmers Union (NFU) has launched a national radio ad campaign urging President Donald Trump to “keep his promises to family farmers by immediately implementing year-round E-15 and reversing the losses caused by the misappropriation of small refinery exemptions.”

“Farmers are still at a net loss from Trump’s actions on biofuels,” the ad says, due to the EPA’s allocation of waivers exempting large oil refiners from complying with the Renewable Fuel Standard (RFS). This decision has “destroyed 2 billion gallons of ethanol demand,” a volume that far exceeds any increased use of E15 expected over the next five years.

To make amends for the profound damage done to the biofuel industry, NFU is calling on President Trump to “do right by his promise to support American farmers” and “move quickly on E15 and support net increases in biofuels use – not cuts.”

Listen to the ad here:

NFU E15 Radio Ad
Audio, E15, Ethanol, Ethanol News, NFU

Ethanol Stakeholders Comment on High Octane Fuel

Cindy Zimmerman

Ethanol stakeholder groups submitted comments Friday to the Environmental Protection Agency (EPA) and National Highway Transportation Safety Administration (NHTSA) on the proposed SAFE Vehicles Rule, emphasizing the benefits for fuel economy and emissions reductions from the use of high-octane fuels, which can be attained with higher blends of ethanol.

“Ethanol delivers the highest octane at the lowest cost, allowing automakers to benefit by continuing to develop high-compression engine technologies and other product offerings to achieve efficiency improvements and reduced emissions,” said the American Coalition for Ethanol (ACE), which provided recommendations for removing regulatory barriers restricting market access to high octane midlevel ethanol blends in its comments.

Comments from the National Corn Growers Association urged regulators to consider fuels and vehicles as a system of high-octane fuel used with optimized engines. NCGA also believes high-octane, low-carbon fuel can help support harmonization between federal and state standards.

“The science behind the benefits of midlevel ethanol-blended fuels like E25 and E30 is well documented by national laboratories, automobile manufactures, and scientific institutions,” said Growth Energy Vice President of Regulatory Affairs Chris Bliley. “Stable policies and access to market drivers will enable our industry to provide low-carbon, more affordable, high-performing, sustainable vehicle fuel solutions.”

The Renewable Fuels Association (RFA) is recommending that EPA and NHTSA should require the gradual phase-out of today’s regular grade gasoline and replace it with a fuel-neutral higher-octane standard. “The auto industry and petroleum refiners already support the idea of legislation to raise gasoline octane to 95 RON. But no legislation is necessary to enable more efficient vehicles: Congress has already provided EPA with authority to control octane levels under section 211(c) of the Clean Air Act,” RFA explained.

ACE, corn, Ethanol, Ethanol News, Growth Energy, Octane, RFA

Ethanol Report from Export Exchange 2018

Cindy Zimmerman

There was a special focus on the ethanol co-product distillers dried grains with solubles (DDGS) at the fifth biennial Export Exchange held this past week in Minneapolis.

The U.S. Grains Council (USGC) began organizing this event in 2010 with the help of the Renewable Fuels Association (RFA) to bring together international buyers and domestic sellers of U.S. feedgrains and ethanol co-products.

In this edition of the Ethanol Report, we hear from USGC CEO Tom Sleight, RFA chief economist Scott Richman and RFA Regulatory Affairs Vice President Kelly Davis about the importance of DDGS to ethanol producers and the U.S. feedgrains export market.

Ethanol Report from Export Exchange 2018

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Ethanol, Ethanol News, Ethanol Report, Events, Export Exchange, Exports, RFA, USGC

Concerns Raised About E15 Rulemaking Delay

Cindy Zimmerman

Ethanol interests have been raising concerns this week about the Environmental Protection Agency delaying the start of the rulemaking process for year-round E15 until February 2019, which would make the timeline for getting it approved before next summer very tight.

“EPA ought to speed it up, or otherwise it’s going to look like the president wasn’t serious about his announcement,” said Sen. Chuck Grassley (R-IA) this week. “We don’t need this sort of bureaucratic red tape with something that’s been discussed in Washington for years.”

The issue was brought up during a roundtable discussion Thursday with Agriculture Secretary Sonny Perdue, Sen. Mike Rounds and Rep. Kristi Noem at POET Biorefining in Chancellor, South Dakota. “EPA bureaucrats already appear to be slow-walking the rule, which raises doubts it can be done by June 1,” said American Coalition for Ethanol (ACE) CEO Brian Jennings, who attended that roundtable. “We cannot accept EPA slow-walking the process after the President made such a big splash announcing it for rural America, particularly our farmers who are hurting from low corn prices.”

Secretary Perdue is optimistic it will happen. “Federal regulations take more time than certainly I would like, but we believe the E15 rule will be in place prior to next year’s driving season,” he told reporters in Illinois this week – USDA radio news story 10-25-18

Renewable Fuels Association president and CEO Geoff Cooper says they would very much like to see a proposal out sooner than February, but the administration has assured them it can be done before next summer. “We’re certainly hopeful that’s the case but it’s going to take the pedal to the metal to make that happen,” said Cooper during a conference call with reporters Thursday. He confirmed that some retailers may be hesitant about making the commitment to E15 now based on promises for next year, while a couple have already jumped on board since the president made the announcement earlier this month.

RFA CEO Geoff Cooper comments on E15 rulemaking timeline
ACE, Audio, corn, Ethanol, Ethanol News, POET, USDA

Key DDGS Issues in Focus at #ExEx18

Cindy Zimmerman

Tyson Foods Poultry Nutritionist Philip Smith spoke at the first Export Exchange back in 2010 and he was back again this year at the biennial educational and trade forum to talk about the use of the ethanol co-product distillers dried grains with solubles (DDGS) in poultry feed.

Tyson has been using DDGS for feed at numerous locations for almost 15 years and Smith says it comes down to price and consistency.

Listen to his presentation here: Export Exchange 18 presentation Philip Smith, Tyson

ProExporter Senior Analyst Bill Holbrook provided his outlook for DDGS, challenges and opportunities.

In his presentation, Holbrook said he expects to see U.S. DDGS production and exports increase going forward, growing from about 37.8 million metric tons of production feeding an 11.7 mmt export market this year, to as much as 18 million tons of exports in 2030.

“We’re basically growing it by about 50% over the next 12 years or so,” said Holbrook.

Listen here: Export Exchange 18 presentation Bill Holbrook, ProExporter

Export Exchange 2018 Photo Album

Export Exchange is co-sponsored by the U.S. Grains Council (USGC), Renewable Fuels Association (RFA), and Growth Energy to bring together international buyers and domestic suppliers of corn, DDGS, sorghum, barley and other commodities.

Audio, Distillers Grains, Ethanol, Ethanol News, Events, Export Exchange, Exports, RFA

Growth Energy Pleased to Co-Sponsor #ExEx18

Cindy Zimmerman

Export Exchange 2018, held this week in Minneapolis, was the fifth biennial educational and trade forum for U.S. feed grains and ethanol co-products to be held since 2010 and the first one co-sponsored by Growth Energy.

“The past 12 months have seen the highest amount of ethanol exports in history, and this year’s Export Exchange is the perfect place to tell our story and showcase the benefits that American-made ethanol and its co-products can bring to global marketplaces,” said Growth Energy Senior Vice President of Global Markets Craig Willis. “Growth Energy is very much about business development and growing these export markets.”

Willis talks more about Growth Energy’s market development efforts in this interview. Export Exchange 18 interview with Craig Willis, Growth Energy

Export Exchange 2018 Photo Album

Audio, Ethanol, Export Exchange, Exports, Growth Energy

RFA Finds Over 93% of 2019 Vehicles Approved for E15

Cindy Zimmerman

More than 93 percent of 2019 model year (MY) vehicles are “explicitly approved by the manufacturer to use 15 percent ethanol blends (E15),” according to the latest analysis from the Renewable Fuels Association (RFA). That’s four percent more than the approximately 89 percent of MY 2018 vehicles that were E15 approved.

Automakers began specifically approving E15 in owner’s manuals and warranty statements in 2012, the first year E15 was sold commercially, and the makes and models included have been increasing every year since then, with 28 of the 32 vehicle lines reviewed in this analysis carrying manufacturer’s approval. For the first time, Subaru is now approving the use of E15 in several of its most popular models for MY 2019, including the Ascent, Crosstrek and Impreza. Mercedes-Benz and Mazda, BMW, Volvo, and Mitsubishi are the only manufacturers not on the list.

“As this analysis shows, virtually all new vehicles are clearly approved by the manufacturer to use E15, a cleaner and cheaper fuel blend that is available today at more than 1,400 stations in 29 states,” said RFA President and CEO Geoff Cooper. “We applaud Subaru for approving E15 in many of its new models for the first time, and we will continue to work with the few remaining automakers who do not yet list E15 as an approved fuel.”

RFA held a panel teleconference Thursday to address some of the false and misleading information about E15 being spread by ethanol opponents, including its use in vehicles and marine engines, as well as its impact on air quality. Participating were:

• Geoff Cooper, President and CEO, Renewable Fuels Association
• Janet Yanowitz, P.E., PhD, Ecoengineering, Inc – Air Quality Expert
• Gary Burris, Owner Sport World Boat Center – Marine Engines Expert
• Matt Morrison, RFA Outside Counsel
• Gary Herwick, Auto Industry Expert

Listen to remarks from each participant here: RFA panel teleconference on E15

Audio, Car Makers, E15, Ethanol, Ethanol News, RFA

New Editorial Themes for Ethanol Today in 2019

Cindy Zimmerman

The bimonthly industry trade magazine Ethanol Today, published by the American Coalition for Ethanol (ACE), has released a new lineup of editorial themes and event sponsorship opportunities for 2019.

The publication’s themes cover a wide range of topics, including clean fuel and high octane ethanol market opportunities; trade; an update on ethanol-related policy and legislative issues; plant technology; business optimization; and more. Ethanol Today has focused on providing timely, in-depth information about the people, policies and issues that drive ethanol in America for over 15 years.

“The 2019 editorial themes represent the issues of importance to ACE membership and our knowledgeable advisory board of ethanol industry representatives — truly a trade publication for our readers by our readers,” said Katie Fletcher, ACE Communications Director and Editor of Ethanol Today. “ACE’s trade publication supports the innovation, production, efficiency and growth of this industry through content planned and written with ethanol producers at the forefront.”

Ethanol Today is sent to all ACE members, as well as all U.S. ethanol plants and each member of Congress. With the new year just around the corner, ACE is currently offering competitive advertising rates for all six issues of Ethanol Today and sponsorships for the organization’s 11th annual Washington, D.C. fly-in and 32nd annual conference in 2019.

ACE, Ethanol