GROWMARK Growing as a Propane Retailer

Cindy Zimmerman

GROWMARK ranked as the fifth largest propane retailer in the United States by LP Gas Magazine with sales of over 211 million retail gallons of propane during 2016.

“Propane is used for a lot of different reasons,” says Zach Baugher, GROWMARK Propane Marketing & Technical Services Manager. “Home heat, livestock building heat, grain dryers, and now we’re starting to see an increase in autogas and irrigation motors.”

Baugher says autogas has tremendous growth potential. “We see it as the area that will grow the most between now and 2025,” he said, noting that fueling infrastructure is what is currently restricting expansion. “But we’re really seeing a push for propane-powered school buses right now because of the total cost of ownership savings.”

In this interview, Baugher talks about how GROWMARK is preparing to serve the growing market for propane autogas and how increased use of propane for irrigation motors is being fueled by promotion efforts from the Propane Education and Research Council‘s Farm Incentive Program. Interview with Zach Baugher, GROWMARK Propane

Audio, GROWMARK, Propane

White House Denies RFS Change Plans

Cindy Zimmerman

After a day of volatile grain trading based on news stories, the White House late Tuesday denied that there was an executive order in the works to change the Renewable Fuel Standard (RFS).

Wednesday, Sen. Chuck Grassley (R-IA) made inquiries about the matter and issued a statement. “Based on conversations my staff and I had, there’s no reason to believe that such an executive order is pending or imminent,” said Grassley. “As I’ve said before, keeping the point of obligation where it is now, with refiners and importers, has worked and makes sense. Moving the point of obligation from a handful of refiners to hundreds or thousands of small fuel retailers would undermine the integrity and viability of this successful program.”

The industry uproar had an impact on grain trade Tuesday and on the market for Renewable Identification Numbers (RINs) which would be affected by a change in the point of obligation.

Ethanol, Ethanol News, RFS

#RFANEC Attendees Introduced to EXIM Bank

Lizzy Schultz

One of the sessions held during last week’s National Ethanol Conference gave attendees the opportunity to learn more about the Export Import Bank of the United States (EXIM), the official export credit agency of the U.S. government.

In her presentation, Sandra Donzella, Deputy Managing Director for the Western Region, explained how EXIM provides help to exporters by filling financing gaps and managing export risks through its loan, guarantee, and insurance programs.

“There are great opportunities available right now for U.S. ethanol exports, and as you seek to do business internationally, you may find a key factor that is likely to impact your ability to win business and succeed internationally is whether or not you have the financial resources and flexibility able to offer your potential customers abroad competitive prices,” Donzella said.

EXIM is not a bank and does not provide many direct loans, instead offering lenders with financial solutions that help exporters to mitigate risk while they work to become more competitive on the global market. Companies of all sizes and within all sectors, including agriculture and ethanol, have utilized the resources available from EXIM.

Some of the financial solutions offered by EXIM include the ability to provide working capital guarantees to commercial lenders who provide financing to U.S. exporters, as well as term financing and export credit insurance.

Listen to the entire presentation here:
#RFANEC Presentation-EXIM Bank

2017 National Ethanol Conference Photo Album

Agribusiness, Audio, Exports, International, National Ethanol Conference

#Ethanol Officially Breaks Through the Blend Wall

Cindy Zimmerman

car-wallThe latest numbers from the Energy Information Administration (EIA) show that ethanol officially broke through the blend wall in 2016.

The latest data shows U.S. ethanol production set a new record of 15.33 billion gallons (bg) last year and the average gallon of gasoline contained slightly more than 10 percent ethanol, according to the Renewable Fuels Association (RFA).

“Driven by the Renewable Fuel Standard and attractive blending economics, domestic refiners and blenders used more ethanol than ever before,” said RFA president and CEO Bob Dinneen. “In the end, 2016 will forever be remembered as the year we left the fictional ‘blend wall’ in the dust once and for all.”

Total ethanol production in 2016 was up 3.5% from the previous high of 14.81 billion gallons in 2015. The data also suggest domestic ethanol disappearance of 14.4 billion gallons in 2016 (14.06 bg of input by blenders/refiners and 340 mg of “supply adjustments”), along with exports of 1.05 bg. U.S. gasoline consumption totaled 143.37 bg, up 1.9% from 2015 and a new all-time record. The data imply an average ethanol blend rate across the U.S. of 10.04%, meaning higher level blends like E15 and E85 saw increased market penetration.

EIA also reported that a new monthly production record was established in December, with output averaging 1.047 million barrels per day.

Ethanol, Ethanol News, RFA

The Global Trends Driving #Ethanol Demand

Lizzy Schultz

Ethanol exports continue to serve as a valuable and expanding revenue source for the U.S. ethanol industry. As part of a presentation during last week’s National Ethanol Conference, Scott Richman, Senior Vice President, Informa Economics, provided an in-depth look at current market trends associated with global trade in ethanol and key factors that are driving ethanol demand.

“While the domestic market is still the dominant market for ethanol sales, it’s no longer enough,” said Richman during his presentation. “In recent months we’ve been producing at a rate of 16 billion gallons per year, so clearly export markets are vital for the future health of the U.S. ethanol industry.”

Last year was the second largest year for U.S. ethanol exports, with a total reaching just over one billion gallons. Richman praised the collaborative work being done on the ground by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC) to help create global demand for ethanol in several emerging markets.

“At least two thirds of our ethanol exports are going to countries with ethanol mandates,” he said. “The policies that those countries have, and the work of the partnership between the RFA and USGC are critically important, and will remain critically important, on that front.”

Richman also explained how low U.S. corn prices, global interest in lowering carbon emissions, increased global demand for high octane fuels, and recent industry challenges faced by the Brazilian ethanol market have all helped position U.S. ethanol competitively on the global market.

The importance of U.S. trade policy, as well as the political climate of countries that serve as key ethanol export markets, to the future success of U.S. ethanol exports was also discussed.

Catch the full presentation here:
#RFANEC Presentation-Scott Richman, Informa Economics

2017 National Ethanol Conference Photo Album

Ag group, Audio, Ethanol, Exports, National Ethanol Conference, RFA

RFA Talking #Ethanol Regs with Trump Adviser

Cindy Zimmerman

Renewable Fuels Association (RFA) president and CEO Bob Dinneen says he has been talking with a special regulatory adviser to President Trump about how they might work together on regulatory changes to the Renewable Fuel Standard (RFS), but it involves compromising on the point of obligation issue.

Dinneen issued a statement regarding a call he received from “an official with the Trump administration” – identified by others as Carl Icahn, who owns CVR Refining. Dinneen says he was informed that “a pending executive order would change the point of obligation from refiners to position holders at the terminal, a potentially small increase in the number of obligated parties, but one which would distribute the obligation more equitably.”

“Despite our continued opposition to the move, we were told the executive order was not negotiable,” said Dinneen. RFA just submitted comments last week opposing the proposed change in point of obligation from refiners to blenders, while one of RFA’s largest members, Valero Energy, supports it – as does CVR Refining.

Dinneen indicated he would rather relent on the point of obligation to get a waiver allowing higher ethanol blends to be sold year round. “Our top priority this year is to ensure consumers have year-round access to E15 (15% ethanol) and we would like to Trump administration to help cut through the red tape on this unnecessary regulation,” he said. “We will continue to do everything we can to ensure consumers have access to the lowest cost, cleanest, highest octane source of fuel in the world, and to ensure a strong RFS is maintained.”

Press reports indicate this was the deal that was struck between RFA and Ichan, which was denounced by ethanol trade group Growth Energy. “Neither RFA nor Carl Icahn have the authority to strike a ‘deal.’ Mr. Icahn does not work for the U.S. government; he owns CVR Refining, which would profit directly from this change,” said Emily Skor, CEO of Growth Energy.

American Coalition for Ethanol Executive Vice President Brian Jennings also commented. “Despite rumors, this is not a done deal and not a take-it-or-leave-it scenario. Changing the RFS point of obligation and providing RVP relief will both require EPA rulemaking and public comments,” said Jennings. “The only clear winners in a deal to move the RFS point of obligation would be Carl Icahn and oil refiners like Valero.”

Ethanol, Ethanol News, Government, RFA, RFS

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

National Ethanol Conference photo album

Ag group, Audio, Ethanol, National Ethanol Conference, RFA, RFS

#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.

Ethanol, Ethanol News

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

National Ethanol Conference photo album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

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

National Ethanol Conference photo album

Audio, Ethanol, Ethanol News, National Ethanol Conference, Novozymes