Gevo to Acquire Red Trail Energy Assets in North Dakota

Cindy Zimmerman

Net-zero hydrocarbon fuels leader Gevo this week announced the acquisition of the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy in North Dakota for $210 million.

In a conference call announcing the acquisition, Gevo CEO Dr. Patrick Gruber said it will provide an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota. “It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation,” said Gruber. “Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota.”

“We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS,” said Gevo President and COO, Dr. Chris Ryan. “We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.”

The transaction is expected to close by the first quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy’s equity holders and the procurement of financing for the acquisition. Gevo expects to finance the transaction with a combination of asset level debt and cash from the balance sheet.

Listen to Gruber and Ryan announce the acquisition on the conference call.
Gevo announces Red Trail acquisition (7:38)

Audio, aviation biofuels, Carbon, carbon capture, Ethanol, Ethanol News, SAF

Farm Foundation Forum Discusses Biofuel Policy

Cindy Zimmerman

Rod Snyder and Kip Tom

While the Kamala Harris/Donald Trump debate took the spotlight this week, Farm Foundation hosted a forum on Monday that focused more specifically on the farm policy of each party’s candidate.

Moderated by Kristina Peterson with The Wall Street Journal, The Agricultural Platforms of the Candidates for President of the United States featured Kip Tom, Farmers and Ranchers for Trump Coalition, for the Republican platform, while the Democratic platform was advocated for by Rod Snyder, former Senior Advisor for Agriculture for EPA in the Biden-Harris Administration. Topics covered included the farm bill, agricultural trade, environmental policy, farm labor and immigration, and biofuels policy.

Snyder, who recently stepped down from his position with EPA, says the Biden-Harris administration committed to getting the Renewable Fuel Standard back on track. “We made good on that,” said Snyder. “The administration finalized the largest ever volumes in the history of the program across all categories, including 15 billion gallons of conventional ethanol.”

He also pointed to the tax credits in the Inflation Reduction Act for Sustainable Aviation Fuel. “If we can continue to look for new markets, even if on-road liquid fuels plateau, there are still future opportunities for farmers as long as the government can help come alongside and be a partner in that work,” said Snyder.

Tom, an Indiana farmer who served as US Ambassador to the United Nations Agencies for Food and Agriculture under President Trump, stressed the importance of the ethanol industry to corn farmers like himself and the need for higher blends. “I’ll tell you, the biofuels industry has revitalized rural America,” said Tom. “But the reality is we need E15, probably E20, maybe even E30. A lot of vehicles can burn this today, but the electric vehicle mandates have been been pretty substantially hurting the industry.”

The two-hour discussion at the National Press Club also included questions from the audience and it is well worth watching. Watch the whole forum here.

Listen to opening statements and specific comments on biofuels here:
Farm Foundation forum opening statements (18:57)
Farm Foundation forum biofuels policy comments (3:43)

Audio, aviation biofuels, biofuels, Ethanol, Ethanol News, Farm Foundation

Registration Open for 2025 Clean Fuels Conference

Cindy Zimmerman

Registration is now open for the 2025 Clean Fuels Conference, Jan. 20-23 at the Hilton San Diego Bayfront Hotel in San Diego, California.

Hosted by Clean Fuels Alliance America for the biodiesel, renewable diesel and sustainable aviation fuel industries, this year’s conference theme, “Accelerate”, captures the rapid growth and transformative progress of the clean fuels industry. “With the clean fuels industry accelerating at an unprecedented pace, this conference is crucial for anyone involved in shaping the future of heavy-duty transportation,” said Clean Fuels CEO Donnell Rehagen.

The Clean Fuels Conference will feature keynote presentations from Lucas Lentsch, CEO of the United Soybean Board; Beth Whited, President of Union Pacific; and Dr. Steven Cliff, Executive Officer of the California Air Resources Board, among others. In addition to exhibitors and multiple networking events, the conference agenda also offers educational sessions designed to enhance industry knowledge and equip participants for success in an ever-evolving landscape.

The deadline for early bird pricing is November 18, 2024. For more details on registration, agenda and lodging, visit CleanFuelsConference.org.

advanced biofuels, aviation biofuels, Biodiesel, Biodiesel Conference, Clean Fuels Alliance, renewable diesel, SAF

ACE Announces Scholarship Program 2024 Winners

Cindy Zimmerman

L to R; Mallory Moorman, Elsie Ennis, Delaney Frahm

The American Coalition for Ethanol (ACE) is pleased to congratulate its 2024 scholarship recipients Mallory Moorman, Elsie Ennis and Delaney Frahm. Each student receives a $1,000 scholarship through ACE’s Scholarship Program to help further their collegiate education.

Mallory Moorman is from Glenvil, Nebraska, and is attending the University of Nebraska – Omaha, in Omaha, Nebraska, where she studies Chemistry with a concentration in Medicinal Chemistry and a minor in Biology. Mallory was a member of Future Business Leaders of America, National Honor Society and Nebraska Leadership Seminar. Mallory is the daughter of Matthew Moorman. Her father is affiliated with ACE ethanol producer member Chief Ethanol Fuels in Hastings, Nebraska.

Elsie Ennis is from Shullsburg, Wisconsin, and is attending the University of Wisconsin – Madison, in Madison, Wisconsin, where she studies Biology. Elsie was a member of FFA, National Honor Society, and was a Class Officer in high school. Elsie is the granddaughter of Jim Leitzinger. Her grandfather is affiliated with ACE ethanol producer member Badger State Ethanol in Monroe, Wisconsin.

Delaney Frahm is from Elmwood, Nebraska, and is pursuing a degree in Business Administration at the University of Nebraska – Lincoln in Lincoln, Nebraska. Delaney was a member of Future Business Leaders of America and was on the varsity volleyball, basketball and track teams in high school. Delaney is the daughter of Kathy Frahm. Her mother is affiliated with ACE associate member, CoBank, in Elkhorn, Nebraska.

The ACE Scholarship Program was started in 2004, and has since awarded $71,000 in scholarships to employees and dependents of employees and shareholders of ACE Ethanol Producer, Voting and Associate member companies and organizations. Applications for 2025 scholarships will open next spring. For those interested in making a financial contribution to the program, contact Anna Carpenter at acarpenter@ethanol.org or 605-306-6142.

ACE, Education, Ethanol

Diverse Groups Join to Oppose EPA’s Tailpipe Standards

Cindy Zimmerman

More than 55 parties representing diverse interests joined to submit a detailed brief to the D.C. Circuit Court of Appeals last week arguing that the Environmental Protection Agency “unlawfully exceeded its statutory authority and acted arbitrarily and capriciously by finalizing vehicle tailpipe emissions standards that would essentially phase out liquid-fueled engines and mandate increased production of electric vehicles.”

The brief filed Friday was submitted by the Renewable Fuels Association, National Farmers Union, American Farm Bureau Federation, National Association of Convenience Stores, 14 state and national corn grower associations, as well as auto dealers, trucking and shipping company organizations, manufacturing groups, energy trade associations, and other parties.

“The Court should reverse EPA’s rule,” according to the petitioners’ brief, which notes that EPA projects at least 68 percent of new vehicles will need to be electric to comply with the standards by 2032. “EPA seeks to radically transform the nation’s vehicle fleet by effectively mandating a nationwide transition from internal-combustion-engine vehicles to electric vehicles. That bold assertion of regulatory power vastly exceeds EPA’s statutory authority. The Clean Air Act does not clearly authorize EPA to force Americans to buy electric vehicles.”

The brief also holds that EPA “…unreasonably treats electric vehicles as though they contribute zero emissions…” and “…refused to even consider renewable fuels as an alternative to its push for electrification, unreasonably deeming those issues outside the scope of its rule…Higher-octane fuels, biofuels, and flex-fuel vehicles are a documented solution to the issue of pollution from vehicle emissions.” In addition, EPA failed to consider how its tailpipe standards conflict with the Renewable Fuel Standard.

EPA’s response to Friday’s brief is due by November 26.

Meanwhile, Congress may be looking at a legislative way to overturn the tailpipe emissions rule via a Congressional Review Act resolution proposed in May by Rep. John James (R-MI) that would “disapprove” the rule.

automotive, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Exports Record High, DDGS Exports Up

Cindy Zimmerman

U.S. ethanol exports have reached a record high of 1.10 billion gallons so far this year through July, running 38% ahead of last year’s pace, according to the latest trade monitor report from the Renewable Fuels Association.

While ethanol exports dropped seven percent in July compared to June, at 136 million gallons that was still significantly higher than a year ago. A mixed market in July saw Canada continued to be the top destination for the 40th consecutive month, accounting for an impressive 46% of all exports. Exports to Colombia increased by 16%, reaching a five-month high while in contrast, India reduced its imports by 23%. Exports to South Korea surged 11-fold, while the European Union dropped to an eight-month low. Additionally, Mexico, Peru, Singapore, and the Philippines experienced significant declines, and Brazil remained absent from the market.

RFA president and CEO Geoff Cooper says the ethanol industry is having a very good year in the international market. “We’re on track to have a record year for ethanol exports somewhere between 1.8 and 2 billion gallons, we think,” said Cooper during an interview at last week’s Farm Progress Show. “That would be the highest share and the largest volume that we’ve ever exported.”

At the same time, U.S. exports of the ethanol co-product dried distillers grains (DDGS) are up 15% compared to last year, at 6.97 million mt as of July, when they jump 16% from the previous month driven by Mexico as the top market, boosting its imports by 23% to a five-month high of 247,903 mt. Shipments hit three year high with significant gains in markets such as South Korea (6%) and the European Union (56%), driven by a 161% rise in sales to Ireland. Cooper says DDGS exports will be highlighted at the upcoming Export Exchange, October 7-9 in Fort Worth, Texas.

“About one out of every three tons of distillers grains we’re producing is exported and we need to continue growing demand internationally for distillers grains,” said Cooper.”

RFA CEO Cooper supply/demand comments (2:17)

Audio, Ethanol, Ethanol News, Export Exchange, Exports, Renewable Fuels Association, RFA

SAF Coalition Submits Comments on Energy Credits

Cindy Zimmerman

The Sustainable Aviation Fuel (SAF) Coalition this week submitted comments on energy credits and incentives to the U.S. House of Representatives’ Committee on Ways and Means in response to a request for stakeholder input from the Supply Chain Tax Team.

In its comments, the Coalition stressed the economic benefits of SAF investment, as well as the need for long-term SAF incentives similar to biofuels.

To achieve this, the SAF Coalition urged the House Ways and Means Committee to consider the following legislative and regulatory solutions:

Provide a longer duration for the SAF tax incentives to support the SAF marketplace and agricultural sector;

Enhance the value of SAF tax incentives to support sustained investment in producing these new fuels and bolster U.S. SAF leadership;

Ensure tech neutrality of SAF tax incentives to encourage innovation;

Ensure complimentary actions at the Environmental Protective Agency (EPA) are consistent with the goals of the SAF tax incentives.

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF

Ayrstone® Announces Higher-speed AyrMesh® HubDuo

Cindy Zimmerman

Ayrstone® announces availability of a new higher-speed AyrMesh® Hub – the AyrMesh® HubDuo.

Thousands of farmers and ranchers across the United States and Canada have already discovered how easy it is to have an outdoor WiFi network on their property with Ayrstone AyrMesh products. The new AyrMesh HubDuo is the first Hub to use dual-band technology to deliver very high-speed outdoor WiFi to nearby devices, and standard high-speed WiFi at longer distances. Like the AyrMesh Hub2x2, using MIMO the AyrMesh HubDuo can provide broadband-class WiFi to hundreds or even thousands of acres of property. In addition, it also has a 5.8 GHz. signal to provide extremely high-speed WiFi – up to 100 Mbps – at short range. The transmit power of the HubDuo can also be adjusted significantly, allowing units to be placed much closer together than the existing AyrMesh Hubs.

“We have been talking to our customers, and they told us that they wanted two things: more speed from the AyrMesh Hubs and to place the Hubs closer together than the one-mile minimum spacing for our existing Hubs,” said Bill Moffitt, President of Ayrstone Productivity. “The new HubDuo combines much faster WiFi speed and the ability to work in smaller, more intensive operations like dairies and nurseries, but still having the same long range AyrMesh users expect. It’s ideal for security, professional, and leisure activities in a rural setting.”

The AyrMesh HubDuo is available now at the Ayrstone store – https://ayrstone.com.

Learn more in this interview with Moffitt.
Ayrstone president Bill Moffitt 2:21

Audio, communications

Ag Outlook Forum to Feature Biofuels Panel

Cindy Zimmerman

The upcoming annual Ag Outlook Forum in Kansas City September 16 will feature a panel discussion on the Future of Biofuels.

Moderated by Kansas Corn CEO Emeritus Greg Krissek, the panel will feature Donnell Rehagen, CEO, Clean Fuels Alliance America; Jeff Davidman, Vice President – Government Affairs, Delta Air Lines; and Lee Blank, CEO, Summit Carbon Solutions. Together they will explore the complex landscape for biofuels including the push for electric vehicles and emerging tax credits that offer potential opportunities.

Ag Outlook Forum is presented annually by the Agricultural Business Council of Kansas City and Agri-Pulse and this will be the 10th annual event featuring top economic, policy, business, and government officials presenting their current outlooks. In addition to the biofuels panel, there will also be an Ag Economy panel, and a list of distinguished speakers including Robert Bonnie, USDA Under Secretary for Farm Production and Conservation; U.S. Senator Jerry Moran, Kansas; U.S. Congressman Tracey Mann, Kansas 1st District; and Seth Meyer, USDA Chief Economist.

The forum will be held in person on September 16, 8:00 a.m. – 5:30 p.m. central, at the Kansas City Marriott Downtown, and a virtual attendance option is available. Find out more.

Agri-Pulse, Agribusiness, Biodiesel, Clean Fuels Alliance, Ethanol, Ethanol News

Verbio Showcases Green Energy Tech at FPS

Cindy Zimmerman

Verbio showcased its green energy and organic fertilizer technology at this year`s Farm Progress Show in Boone, Iowa. The company recently announced the launch of ethanol production in addition to RNG production at its Nevada, Iowa plant location.

Operating as a full biorefinery, the plant has installed a total capacity to produce 60 million gallons of corn-based ethanol per year and 2.3 million MMBtu of renewable natural gas (RNG). It is the first plant of its kind in North America.

“We are excited to further tell our story about our game changing technology for creating climate-friendly bioenergy from crop residues and corn,” states Greg Faith, Verbio Nevada plant President and General Manager. “The integration of RNG, bioethanol and plant-based fertilizer production is what makes the Verbio technology stand out within the American energy market.”

Visitors to the Verbio booth were able to learn about the company’s technology of converting corn stover to renewable natural gas (RNG) and could sign up to contract acres with the Verbio team. “Working with us, Iowa growers can take their businesses to the next level with an innovative residue management solution that provides a greener path for agriculture and the environment at the same time,” said Faith.

Ethanol, Ethanol News, Farm Progress Show