“Diesel Brothers” are Biodiesel Hit at #Classic18

Cindy Zimmerman

The DieselSellerz, stars of the Discovery Channel show “Diesel Brothers” were a big hit at the Commodity Classic last week as they unveiled their latest creation – a fully customized, biodiesel powered, Ford F550 Powerstroke diesel.

The truck was built in partnership with the Minnesota Soybean Research and Promotion Council as a way to highlight biodiesel as a commercial fuel available to consumers nationwide and was on display during the Commodity Classic at the Anaheim convention center in the National Biodiesel Board booth.

Minnesota soybean farmers Pat Sullivan, Kris Folland and Craig Bangasser became part of filming for Discovery’s “Diesel Brothers” show over the past year and helped the brothers from the DieselSellerz unveil the long-awaited Minnesota biodiesel truck

The truck was designed from a Ford platform using OEM drivetrain parts and fueling systems that already support the use of the alternative fuel in regular applications.

The episode of Diesel Brothers that will feature the truck is tentatively scheduled to air later this spring on the Discovery Channel.

Biodiesel, Commodity Classic, NBB

Ethanol and DDGS Exports Fall in January

Cindy Zimmerman

U.S. ethanol exports dropped by half in January compared to December’s record high, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA).

January ethanol exports totaled 88.3 million gallons (mg), the lowest volume in four months. Despite the imposition of a tariff rate quota and 20% tariff in September, Brazil was the leading destination for U.S. ethanol exports for the third straight month at 40.7 mg. Canada was the second-leading market at 19.9 mg, which was down 14% from December. With nearly 70% of U.S. ethanol exports destined for Brazil and Canada, shipments to the rest of the world shrank significantly from December.

Exports of dried distillers grains with solubles (DDGS) were down 7% in January to 898,940 metric tons (mt). Down 10 percent from December, Mexico remained the top customer as one-fifth of total exports while Thailand increased its imports of U.S. DDGS by 1%, enough to secure second place in January. Turkey increased its imports of U.S. DDGS by 19%, South Korea dropped 43% to the smallest volume in five months, and Indonesia imported 13% less U.S. product. Vietnam dropped 37% and out of the top five markets following a quarter of strong export demand.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Nearly 50,000 Iowa Jobs Tied to Biofuels

Cindy Zimmerman

A new study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association (IRFA), finds that nearly 50,000 Iowa jobs are supported by biofuels production. IRFA Executive Director Monte Shaw says the study indicates how many livelihoods are at stake in the continuing efforts by Texas Senator Ted Cruz to convince the White House to undermine the Renewable Fuel Standard (RFS) for the sake of oil refiners.

“Undermining the RFS will not save one refinery job in Pennsylvania, but as this study reminds us, it could push thousands of farm families over the economic cliff,” Shaw said. “Embracing Senator Cruz’s anti-RFS proposals would be a complete abdication of President Trump’s pledge to voters to defend the RFS. We are confident that facts, common sense, and past commitments will carry the day.”

In addition to supporting 50,000 jobs in Iowa, the study found that in 2017 the renewable fuels industry in Iowa generated more than $2.4 billion in household income for Iowans and accounted for $5.0 billion, or 3.4 percent, of Iowa GDP.

Ethanol, Ethanol News, Iowa RFA, RFS, RINS

Ethanol Plant Managers Write President

Cindy Zimmerman

Managers at 150 U.S. biofuel refineries across the heartland have sent a letter to President Donald Trump, urging him to “stand strong in defense of the Renewable Fuel Standard (RFS).”

The plant managers, which represent the majority of U.S. ethanol production, address proposals by oil refinery supporters to “cut, cap, or eliminate” Renewable Identification Numbers (RINs), which they say “would eliminate market access for higher ethanol blends, and they are deal-killers for rural America.”

“The campaign against RINs is based on fairy tales, designed to justify handouts for the same folks who raided corporate funds at the expense of local workers in Philadelphia,” Growth Energy CEO Emily Skor said. “Instead of pitting their own workers against rural jobs, refinery owners should be talking about pro-growth options, like lifting needless limits on summertime sales of E15.”

“Just last evening, USDA Secretary Sonny Perdue again affirmed the administration’s support for a robust RFS,” said Renewable Fuels Association (RFA) President and CEO Bob Dinneen. “The U.S. ethanol industry is asking the President to continue honoring his commitment to Rural America by rejecting efforts by Sen. Cruz to destruct renewable fuel demand and harm consumers across this country.”

In addition to today’s effort, military veterans working in the ethanol industry sent President Trump a letter last year at this time, reminding him that his “continued commitment to the RFS and pledge to ‘end restrictions that keep higher blends of ethanol from being sold’ are among the strategies that will help free our economy from the influence of OPEC oil ministers once and for all.”

Ethanol, Ethanol News, Growth Energy, RFA, RFS, RINS

ICM and The Andersons Collaborate on New Bio-refinery

Cindy Zimmerman

ICM, Inc., and The Andersons, Inc., are partnering to own and construct a state-of-the-art bio-refinery in Colwich, Kansas.

ELEMENT, LLC will be a 70 MGY bio-refinery combining ICM’s next-generation technologies, with the merchandising, risk management and logistics expertise of The Andersons. “The Andersons and ICM share a common vision. We strive to utilize our combined experience and expertise to build and grow businesses that operate in the top percentile of their industries,” said Chris Mitchell, ICM President. “By positioning ELEMENT in such a way to take advantage of what both companies do best, we expect that this company will be the leader in the ethanol industry well into the future.”

The plant is designed to be the most efficient dry mill ethanol plant in the United States, featuring waste wood heat and power generation, high protein distillers dried grains (DDGs), industry-leading cellulosic ethanol production using corn kernel fiber feedstock and advanced corn oil production. The plant is expected to produce ethanol yields in excess of 3.1 gallons per bushel at full capacity and ethanol produced by ELEMENT will be sold primarily in California under the state’s progressive Low Carbon Fuel Standard as well as in other emerging low carbon markets.

“Twelve years ago, we worked with ICM to build the first of our ethanol plants,” said Mike Irmen, President, The Andersons Ethanol Group. “Since then, our ethanol business has grown to become a significant contributor to our Company’s success and an important part of our vision for the future. We are excited to begin this partnership with ICM and eagerly anticipate the value it will bring to our company, our customers, and our shareholders.”

ICM began preparing the plant site in late fall 2016. Construction and manufacturing will begin in early 2018 with the first phase of start-up scheduled for spring 2019. ELEMENT is expected to be fully operational by year end 2019.

Listen to a press call with Mike Irmen and The Andersons CEO Pat Bowe:
The Andersons press call

advanced biofuels, Audio, Cellulosic, Ethanol, Ethanol News

Study Shows Impact of RIN Price Cap on Corn Prices

Cindy Zimmerman

A new analysis from the Center for Agricultural and Rural Development (CARD) at Iowa State University shows that any action to artificially cap Renewable Identification Number (RIN) prices in exchange for a waiver allowing year-round sale of E15 would result in reduced ethanol consumption, a drop in corn prices, and an effective cut of 5% to the Renewable Fuel Standard (RFS) conventional renewable fuel requirement.

During meetings with RFS stakeholders last week at the White House, a proposal to lower RIN prices for oil refiners was made that would cap RIN prices at 10 cents in exchange for a Reid Vapor Pressure (RVP) waiver for E15.

“The study confirms imposing a price cap on RINs would abrogate the potential benefit of RVP parity for E15. Fundamentally, a RIN price cap and E15 RVP parity work at cross purposes. One is intended to grow demand for biofuels; the other is intended to reduce demand. The net result would be an effective cut to the RFS, lower ethanol production, lower corn prices, and higher consumer gasoline prices,” said Renewable Fuels Association President and CEO Bob Dinneen.

National Corn Growers Association President Kevin Skunes said, “This economic analysis backs up what corn farmers have been telling the Administration – that manipulating the RIN market mechanism would reduce ethanol blending and impact corn prices. A drop of 25 cents per bushel in corn prices, as CARD economists project from a RIN price cap, would devastate farmers and stagger rural communities.”

Both corn and ethanol interests are standing strong on the option of capping RIN prices. “Not on any proposal that would reduce demand,” said Dinneen. “The message is simple, this program is not broken. It is working as it is intended.”

Dinneen discusses the RIN price issue in the latest edition of The Ethanol Report.

corn, Ethanol, Ethanol News, NCGA, RFA, RFS

Northey Takes Oath of USDA Office

It was a long time coming, but finally Secretary of Agriculture Sonny Perdue administered the oath of office to Bill Northey to serve as the Under Secretary for Farm and Foreign Agricultural Service (FFAS) at USDA. Northey has served as Iowa’s Secretary of Agriculture, and is a former president of the National Corn Growers Association.

“After months of waiting, I’m thrilled to finally have Bill on board at USDA,” Secretary Perdue said. “The patience he displayed throughout this process is an indicator of what kind of steady leader he will be on our team, and we are eager for him to get to work. Bill comes to us at an important time, as farm incomes are down and expected to fall further. Additionally, with work on the 2018 Farm Bill already underway, Bill will play an integral role in the advice we offer to Congress.”

However, there is still a little work to do when it comes to that title, and it is a little confusing right now. Under Secretary for Farm Production and Conservation (FPAC), the position for which Northey is intended, is a new position created by the realignment of agencies to encompasses the Farm Service Agency, the Natural Resources Conservation Service, and the Risk Management Agency. The realignment was necessitated by the creation of Under Secretary for Trade and Foreign Agricultural Affairs, as directed by the 2014 Farm Bill. So USDA is working with Congress to formally change the name of Northey’s mission area to FPAC. One step at a time.

AgWired Animal, AgWired Energy, AgWired Precision, USDA

Ethanol Report on RINs in the White House

Cindy Zimmerman

President Donald Trump has been meeting with stakeholders in the biofuels and refinery industries to find a way to lower Renewable Identification Number (RIN) prices that is acceptable to both sides. Two main options are a cap on RIN prices, or allowing year round sales of E15, or some combination of both.

In this edition of The Ethanol Report, we hear Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA), discuss the ethanol industry’s stand on the issue and why they believe there is a very simple solution to an issue that proves the Renewable Fuel Standard (RFS) is working as intended.

Listen to it here: Ethanol Report on RINs in the White House

For more information on how a cap on RIN prices would impact the RFS, the Center for Agricultural and Rural Development (CARD) at Iowa State University has just released a new analysis.

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA, RFS, RINS

Enogen® Premiums Will Top $100 Million in 2018

Cindy Zimmerman

For the past five years, Enogen® corn enzyme technology has given farmers the opportunity to be enzyme suppliers for participating ethanol plants and earn a per-bushel premium, and by the end of this year, Syngenta expects total premiums paid to Enogen corn growers to top $100 million.

Syngenta made that announcement at the Commodity Classic last week. Chris Tingle, head of commercial operations for Enogen at Syngenta, says providing alpha amylase enzyme to ethanol plants as Enogen grain is helping corn growers maximize return on investment for their ethanol acres, and helping ethanol plants be more successful. “With Enogen, ethanol producers can redirect the money they previously used to buy liquid alpha amylase to local farmers instead, in the form of an up to 40-cent-per-bushel premium,” Tingle said. “This is especially significant given current commodity prices and, as these premium dollars are circulated locally, promotes the growth and stability of rural communities through a homegrown fuel that is helping to make America more energy independent.”

Syngenta is currently contracting with more than 1,700 corn growers and has marketing agreements with 31 ethanol plants across 12 states. 2018 ethanol production with Enogen corn is expected to be over 2.5 billion gallons.

Learn more in this interview: Interview with Chris Tingle, Syngenta

2018 Commodity Classic Photo Album

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Audio, Commodity Classic, corn, Enogen, Ethanol, Ethanol News, Syngenta

Biodiesel Group Honors California Clean Fuel Leader

Cindy Zimmerman

Last week at the California Advanced Biofuel Alliance annual conference the National Biodiesel Board (NBB) honored Celia DuBose with the Climate Leader Award.

DuBose was a founding member and the first employee of the California Biodiesel Alliance, an organization committed to enhancing access to cleaner burning biodiesel. As executive director, she oversaw the organization’s recent expansion into representation of other renewable diesel replacement fuels and re-branding as the California Advanced Biofuel Alliance.

CABA’s Celia DuBose with NBB CEO Donnell Rehagen

“Our industry is full of amazing leaders whose dedication and commitment have helped biodiesel grow from an idea to a nearly 3 billion gallon market in just 25 years,” said NBB CEO Donnell Rehagen. “Thanks to people like Celia, who has been a central figure since day one, the biodiesel industry now supports some 64,000 jobs, making a significant impact on communities spread throughout the country. There is no doubt California and biodiesel wouldn’t be the same without Celia.”

The Climate Leader Award is national honor awarded to those whose contributions have had a specific and lasting impact on expanding access to cleaner burning fuels.

advanced biofuels, Biodiesel, NBB