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

American Ethanol Website Gets Facelift

Cindy Zimmerman

Growth Energy recently gave the American Ethanol Racing website a new facelift just in time for the new season.

As an official NASCAR partner and sponsor of the 2018 Daytona 500-winning No. 3 Monster Energy Cup Series racing team, Growth Energy is excited to showcase the many engine performance benefits of biofuels in innovative, engaging ways. The dynamic, revamped website is sleeker and more user-friendly in order to reflect the exciting progress that has been made with the American Ethanol program. The new site also creatively balances thrilling content for racing fans, helpful everyday information for consumers, and technical performance material for automotive professionals.

“Our American Ethanol partners are among the best motorsports athletes, engine performance experts, and ethanol supporters in the world, and this website will serve as a hub for content that communicates the value of biofuels through their stories and expertise,” said Growth Energy CEO Emily Skor.

American Ethanol has recently taken on new partners representing a wide variety of performance motorsports to help spread the biofuels story to an even greater audience, and is also working on comprehensive biofuels and engine performance education program. One of the partners we’re most excited to be working with is Nth Moto out of Minneapolis. Find out more about them in the video below:


American Ethanol, Ethanol, Growth Energy, NASCAR

Biodiesel Board Grows Membership

Cindy Zimmerman

The National Biodiesel Board (NBB) added two more organizations last month, welcoming commodity merchandising company WWS Trading, and biodiesel equipment manufacturer All Line Equipment.

“NBB’s primary goal has always been to advance the biodiesel industry, and one of the many ways we achieve that is by connecting our members to one another,” said Brad Shimmens, Director of Operations and Membership. “We help bridge the gap between biodiesel producers, feedstock suppliers, equipment manufacturers, and more, providing new opportunities for business while helping the industry to reach new heights.”

NBB is celebrating 25 years as an industry organization this year.

Biodiesel, NBB

Iowa Producer Revives California Plant for Low-Carbon Biodiesel

Cindy Zimmerman

WIE president Brad Wilson and Iowa Biodiesel‘s Grant Kimberley

An Iowa biodiesel producer recently celebrated the re-opening of a shuttered California plant to manufacture a cleaner-burning biofuel that will help meet California’s low carbon fuel demands.

Western Iowa Energy (WIE) in Wall Lake recently purchased Agron Bioenergy, a biodiesel production facility in Watsonville, California that was idled in 2016. This marks the first time WIE has expanded its operations outside of the state of Iowa.

“The Low Carbon Fuel Standard has made California the epicenter for biodiesel demand, and that drove our decision to expand outside of Iowa,” said Brad Wilson, WIE president and general manager. “Our access to affordable agricultural materials that score low on carbon intensity and our desire to participate in the growing California biodiesel market made this facility purchase a good business decision.”

Watsonville City Council Members and a Santa Cruz County Supervisor were among the local dignitaries who attended. “The reopening of the Agron plant represents an opportunity to expand the city and state’s commitment to the environment and economy, and we’re proud to be a part of that,” said Bill Horan, WIE chairman.

The Iowa plant has the capacity to produce 45 million gallons of biodiesel per year and the Agron facility can produce 15 million gallons per year.

Biodiesel, Low Carbon Fuel Standard

Biodiesel No Problem in RFS Talks

Cindy Zimmerman

Of those Renewable Fuel Standard (RFS) stakeholders at last week’s White House meeting, only Renewable Energy Group, Inc. President and CEO Randy Howard walked out feeling like his industry was safe.

Howard, who joined other top biofuel company executives who met with the President, Vice President Pence, EPA Administrator Scott Pruitt, and some petroleum refiners to discuss the RFS, says it was made clear there is no problem with biodiesel.

“My first priority in meeting President Trump was to thank him for his support of American renewable fuels and his commitment to the RFS,” said Howard. “The President understood that RIN prices go down with continued growth of biofuel volumes. Then, it was made abundantly clear by all parties in the room that none of them have an issue with biodiesel’s role in the RFS.”

Howard said he looks forward to continuing the dialogue with the Administration on behalf of biodiesel. The president has reportedly asked for yet another meeting with stakeholders after two last week failed to produce a consensus on how to address the issue of high Renewable Identification Numbers (RINs).

Biodiesel, REG, RFS, RINS