How #Ethanol and Oil Can Work Together

Lizzy Schultz

One of the highlights of last week’s National Ethanol Conference was the Future of Fuels Policy Panel. One of the panelists was Chet Thompson, American Fuel and Petrochemical Manufacturers (AFPM) President and CEO. AFPM represents the refining and petrochemical sectors of the fuel industry, and Thompson spoke during the panel about ways that the ethanol and oil industries can work together towards the common goal of improving America’s energy industry.

“One of the reasons we came today is not to focus on our differences, and as you know we’ve had our fair share of differences about the Renewable Fuel Standard (RFS) Program and the policy behind it, but we came to talk about ways that we could work together going forward with our industries,” said Thompson in an interview following the panel.

Thompson also discussed how the Trump Administration’s stance on energy seems to be a win for both the oil and ethanol industries.

“It’s refreshing to have a pro-energy President who doesn’t view us as the enemy and sees us as an asset,” he said. “We’re optimistic about some of his Executive Orders on regulatory reform and infrastructure to push along the Dakota Access Pipeline (DAPL) and the Keystone Pipeline.”

AFPM supports the movement of the Point of Obligation, but Thompson noted that their support of the movement is not an anti-ethanol stance.

“Certainly the Renewable Fuels Association’s (RFA) perspective on the success of the RFS Program is different than ours, but I think we can all agree that it’s in need of some fixes and we’re here to explore what we can agree on in terms of ways to fix the program,” he said. “In the meantime, we believe there are things the agency can do to make the program more equitable in the short term, and that means moving the Point of Obligation.”

Learn more in Chuck’s full interview with Chet here:
Interview with Chet Thompson, AFPM

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#Ethanol Helps Fuel Minnesota Economy

Cindy Zimmerman

The ethanol industry contributed $1.98 billion to Minnesota’s economy last year, according to a new study released by ABF Economics and commissioned by the Minnesota Bio-Fuels Association.

This in turn generated $6.67 billion in gross sales for Minnesota businesses and supported nearly 18,000 jobs in 2016.

“Minnesota’s ethanol industry remains a significant contributor to the state’s economy and supports thousands of jobs in both rural and urban parts of the state,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

ABF Economics said Minnesota’s ethanol industry generated nearly $1.5 billion in household income and paid $80 million to state and local taxes in 2016.

The study also found the ethanol industry used 410 million bushels of corn, or 26 percent of Minnesota’s 2016 corn crop, to produce 1.18 billion gallons of ethanol, 3.5 million tons of dried distiller’s grains (DDGs) and 244 million pounds of corn oil.
Read more.

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Media Viewpoints at #RFANEC

Cindy Zimmerman

A year ago at the National Ethanol Conference, Rachel Gantz wore a media ribbon on her nametag. This year, the “hack turned flack” (as she describes herself on Twitter) is communications director for the Renewable Fuels Association and she sat down with a few of her media colleagues to talk about how the ethanol industry can do a better job getting its message out.

Gantz was joined by DTN/The Progressive Farmer staff reporter Todd Neeley; Wall Street Journal reporter Amy Harder; and Jerry Hagstrom, The Hagstrom Report. Listen to their conversation here: #RFANEC media panel

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Novozymes Helps #Ethanol Producers Listen to Data

Cindy Zimmerman

Listening to your ethanol plant can save you money, according to Novozymes technical service manager Laurie Duval, who presented a NEC Tech Connect session at the National Ethanol Conference last week.

“Basically ethanol plants are huge machines that are producing tons of data every day,” said Duval. “The opportunity in the ethanol industry is around making better use of that information to generate more profitability.”

Duval says getting to the bottom of that data could increase yields as much as two percent “which is worth millions of dollars to an ethanol plant, just by listening to that data.”

Duval explains how Novozymes helps producers understand data management and customize tools for their facilities. Interview with Laurie Duval, Novozymes

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Ethanol Export Opportunities in Sight at #RFANEC

Cindy Zimmerman

Ethanol export panel included Ed Hubbard, RFA; Ryan LeGrand, USGC; Amit Sachdev, USGC; Eric Olson, U.S. Commerce Dept.; and Josh Pedrick, Ethanol Reporter, S&P Global Platts

For the second year in a row, the Renewable Fuels Association (RFA) joined with the U.S. Department of Commerce’s International Trade Administration to host an International Buyer Program (IBP) at the National Ethanol Conference.

The program, designed to introduce U.S. ethanol sellers to foreign buyers in an effort to expand U.S. exports, included 18 international companies from seven top ethanol export markets: China, South Korea, Peru, Mexico, Colombia, India and Brazil.

As part of the IBP, the NEC featured a panel of experts who discussed the top global ethanol markets and export opportunities that exist now and in the future. RFA General Counsel Ed Hubbard moderated the panel which included insights from Ryan LeGrand, Mexico Director, U.S. Grains Council; Amit Sachdev, Country Representative/Consultant, U.S. Grains Council; Eric Olson, Commercial Officer & Senior International Trade Specialist, U.S. Commercial Service; and Josh Pedrick, Ethanol Reporter, S&P Global Platts.

Listen to their discussion to learn about future opportunities for ethanol exports: #RFANEC Ethanol Export opportunities panel

National Ethanol Conference photo album

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Groups Oppose RFS Point of Obligation Change

Cindy Zimmerman

U.S. biofuel and agricultural organizations wrote to EPA Administrator Scott Pruitt last week opposing any change to the Renewable Fuel Standard (RFS) point of obligation.

“The point of obligation is one of the most important remaining tools to help drive higher blends remaining in the RFS. It creates economic incentives for gasoline retailers to offer higher blends such as E15 by providing an economic incentive for increased biofuels blending. Shifting the point of obligation as urged by its proponents would eliminate this incentive. In addition, the proposed effort to shift the obligation would increase by almost 800 percent the number of entities required to comply with the RFS, creating a new and less efficient market,” said the groups in the letter.

The groups also urged Pruitt to take swift action to provide regulatory relief by lifting the Reid vapor pressure (RVP) restriction on E15. The letter was signed by the Advanced Biofuels Business Council, American Coalition for Ethanol, Growth Energy, and the National Farmers Union.

Read more.

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Terry Brandstad Addresses Ag Outlook Forum

Lizzy Schultz

The distinguished speaker at this year’s USDA Agricultural Outlook Forum was former Iowa Governor Terry Branstad, who was recently nominated as ambassador to China.

Branstad took time during his speech to praise incoming Secretary of Agriculture Sonny Perdue and share his thoughts on the future of agriculture and economic development in rural America.

“Simply put, American agriculture is tied to rural America, and rural America is tied to greater agricultural economic development. Perhaps on of the most underreported national news stories of the past few years has been the economic recession that has hit the agricultural economy and the jobs it has cost in farm machinery manufacturing as well as the losses that farmers have sustained.”

Branstad touched on the projected decrease in farm income and how the current farming economy has created financial pressures that are negatively impacting several different industries that are essential to the economies of rural America.

“Despite recent challenges, I believe there is a bright future for agriculture and economic growth in rural America. I’m hopeful because American agriculture is poised to continue innovation, and I believe American agriculture remains best positioned to help feed and fuel this growing global population and deliver the growing fiber and protein requirements demanded by growing middle class populations around the world,” he said. “I’m encouraged by the renewed interest in agriculture and the talent pipeline that is flowing into American agriculture today. I’m confident that the Trump-Pence administration will support the advancement of innovation in agriculture.”

Listen to his full address here:
Terry Branstad Addressing Agricultural Outlook Forum

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Ethanol Report on National Ethanol Conference

Cindy Zimmerman

ethanol-report-adBuilding Partnerships, Growing Markets was the theme for the 22nd annual National Ethanol Conference held this week in San Diego and it was a great two days of reaching across the aisle to those who have sometimes been adversaries of the ethanol industry to find common ground.

In this Ethanol Report interview with Chuck Zimmerman, Renewable Fuels Association president and CEO Bob Dinneen recaps the highlights of the event and the road ahead for the industry. Ethanol Report on National Ethanol Conference

Click here to subscribe to the Ethanol Report podcast feed and never miss an episode!

Click here to listen to panels and interviews and see photos from the National Ethanol Conference

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Cellerate Paving the Way for Cellulosic Ethanol

Lizzy Schultz

One of the new NEC Tech Connect sessions at this year’s National Ethanol Conference focused on new technologies that are working to increase the demand and value for ethanol and have successfully converted the fiber within the corn kernel into extremely valuable cellulosic ethanol.

Miloud Araba, head of technical services for the Enogen group at Syngenta, gave the presentation on the Cellerate process technology that is responsible for this new conversion.

“If we can convert that corn kernel fiber, which we can, into ethanol, that would add a lot of value to the ethanol by converting it into cellulosic ethanol,” he said. “Cellulosic ethanol has a lot of value for the corn industry and for the ethanol industry in general in terms of lowering greenhouse gas emissions, improving the yield of the plant on a bushel basis, and adding more value to the feed by concentrating the protein content and reducing fiber, which allows the ethanol plants to go to a higher value market.”

The process that has been running at commercial plants like Quad County Corn Processors since 2014.

“The interest is in why converting corn kernel fiber into cellulosic ethanol is important, and the key piece is that the fiber is there to convert and is a low-hanging fruit to producing cellulosic ethanol,” said Araba. “There is an opportunity for using existing dry grain ethanol plants in the US to produce as much as 1.5 billion gallons of cellulosic ethanol>”

Cellulosic ethanol in general is something of great interest to nations across the globe. While other feedstocks, such as switchgrass, are also being considered as possible sources of cellulosic ethanol, Araba explained that the Cellerate process of converting corn kernel fiber into cellulosic ethanol is a key step to increasing the production of cellulosic ethanol, as it helps grow momentum and keep investments in that area going.

“It’s our job at Syngenta to continue to invest with the industry as well as internally to keep developing feedstocks, keep developing processes, and keep developing pathways, and those are the three main things we need to produce more ethanol,” said Araba.

Learn more in Chuck’s full interview with Miloud here:
Interview with Miloud Arabas, Enogen

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Point of Obligation Discussion at #RFANEC

Cindy Zimmerman

The extended comment period for the Environmental Protection Agency’s proposed denial to change the Point of Obligation under the Renewable Fuel Standard (RFS) ended this week as panelists at the National Ethanol Conference were discussing the issue.

Pacific Ethanol CEO Neil Koehler refereed the cage fight discussion between Richard Walsh, SVP & Deputy General Counsel, Valero Renewable Fuels Company and Tim Columbus, Attorney, Steptoe & Johnson, who have opposite views on this complicated issue. The Renewable Fuels Association (RFA), of which Koehler is vice chairman, and the majority of industry organizations oppose changing the point of obligation under the RFS, but Valero has led the effort to move it.

Listen to both sides here: #RFANEC Point of Obligation panel

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