With the presidential campaign getting all the attention this year, it may have gone relatively unnoticed that 2016 was a very good year for the ethanol industry. Actually, Renewable Fuels Association president and CEO Bob Dinneen says it was a “terrific” year – with record production, record demand and record exports of distillers feed.
In this Ethanol Report, Dinneen talks about why it was such as good year for the industry: Ethanol Report on 2016 in Review
Our latest ZimmPoll asked the question, “What’s on your Christmas list?”
I hope you all have your Christmas shopping done. I am soon heading out to tackle a few last minute items. Like many in my family, gifts cards seems to be a favorite item for Christmas lists. Our poll falls in line with that trend. Those are quite boring to buy, but oh so easy! I just can’t believe no one has farm equipment on there list this year.
Here are the poll results:
Our new ZimmPoll is live and asks the question, What 2016 ag news will have most impact on future?
As we begin to wrap up 2016, we began to reflect on some top news stories which have topped newsrooms, coffee shops and tractor cabs throughout the year. Let us know what 2016 ag news will have the largest impact on the future. Might it be the Presidential election, biofuels, GMOs or the farm economy?
The District of Columbia Court of Appeals has ruled in favor of the U.S. Environmental Protection Agency (EPA) when it included biodiesel from Argentina under the Renewable Fuel Standard (RFS) for obligated parties to use when meeting their volume obligations. Back in 2015, the National Biodiesel Board (NBB) filed a petition with the EPA urging them to change their rulemaking that allowed foreign biodiesel to be included under the RFS. As part of this law, the fuel producers were required to prove that the feedstocks used in the production of biodiesel were grown on land before 2007 to ensure the biodiesel was sustainably produced.
The Appeals judge wrote that the requirement was “neither arbitrary nor capricious, as it comports with agency regulations and rests upon the kind of highly technical judgments to which we owe agencies great deference.”
In response to the ruling, NBB Vice President of Federal Affairs, Anne Steckel, stated, “We think EPA’s decision has negative implications for the industry, which is why we challenged, so we’re still reviewing the court’s decision and looking at our options. The domestic biodiesel industry is a resounding success story under the Renewable Fuel Standard program, and NBB is committed to supporting a strong and robust program.”
Iowa Lt. Governor Kim Reynolds today unveiled the Iowa Energy Plan, which “assesses current and future energy supply and demand, examines energy policies and programs and identifies emerging challenges and opportunities.”
“Iowa is a leader in biofuels and renewable energy,” said Lt. Governor Reynolds. “That leadership was achieved because of thoughtful planning. Creating a statewide energy plan will keep Iowa at the forefront of energy policy and allow our state to develop a path toward the future.”
The Iowa Energy Plan’s vision statement represents the collective understanding of Iowa’s ideal future in terms of its energy use and resources. The vision considers a planning horizon of 10 years, with 15 objectives and 45 strategies outlined in the 100+ page report.
Several key areas that could positively impact Iowa’s energy economy were identified in the plan, including technology-based research and development, alternative fuel vehicles, and biomass potential.
Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw says he is pleased to see the plan intends to build on the role biofuels have played in powering Iowa’s economy “as there is much more biofuels and biomass can do for Iowa in the future. Optimizing vehicles for biofuels and empowering consumers to choose higher blends of ethanol and biodiesel will be keys to unlocking this potential.”
Learn more about the Iowa Energy Plan.
The Iowa Renewable Fuels Association (IRFA) has announced Cassidy Riley as Communications Director for the organization.
Riley most recently worked as the Central Iowa Field Director for Senator Chuck Grassley’s 2016 reelection campaign. Prior to the campaign she clerked in the Iowa House of Representatives for Rep. Tom Moore. “I’m thrilled to join the IRFA team because I get to use my skills in communications to advocate for the growth of something I believe in – renewable fuels that are good for our economy, environment, and national security,” she said.
Riley is a December 2015 graduate from the University of Iowa with a Bachelor of Arts degree in Journalism and Political Science. her responsibilities with Iowa RFA will include media and member relations, social media and web communication, and promotion of biodiesel and biodiesel co-products.
Waterford School District (WSD), in Michigan, has debuted 10 new school buses powered by propane autogas. The school district joins nearly 30 others in the state who are also fueling their bus fleets with propane. Each Blue Bird Vision Propane bus is retrofitted with propane fuel systems manufactured by Michigan-based ROUSH CleanTech.
“Prior to joining WSD, I had a very positive experience with propane-fueled buses,” said WSD Superintendent Keith Wunderlich. “School buses operating on propane are environmentally friendly and reliable in cold weather conditions, plus offer cost saving benefits.” Another reason WSD purchased propane buses, said Wunderlich, is because they provide the safety of a quieter running engine.
Wunderlich also noted that although the initial purchase cost of each propane-autogas bus is higher the “savings in overall cost of ownership versus a diesel bus is worth the initial cost.”
The Blue Bird Propane bus is equipped with a Ford Motor Company 6.8L V10 engines. According to ROUSH CleanTech, when compared to diesel, each bus emits 80 percent less smog-producing hydrocarbons and eliminates nearly all particulate matter. The WSD fleet of propane buses will reduce nitrogen oxide emissions by around 10,000 pounds and particulate matter by an estimate of 315 pounds each year as compared to the diesel buses they replaced.
“Waterford School District joins hundreds of school districts across America making the decision to find fuel alternatives for their buses,” added Brian Carney, executive director of school bus and customer support for ROUSH CleanTech. “Propane is a proven choice that costs about 50 percent less than diesel per gallon and reduces maintenance costs due to its clean-operating properties.”
Switchgrass, an energy feedstock that can be used for biofuel production, now has another benefit: it can improve soil quality and can be grown on farms that have lost fertile topsoil. According to new research from the University of Missouri (MU) College of Agriculture, Food and Natural Resources has found that switchgrass may be a promising option for growers who have challenges with growing other crops; that is, if there is a good market for the crop. The study was published in a recent edition of the Soil Science Society of America Journal.
The MU researchers studied plots with varying amounts of topsoil. Each plot included corn, soybeans and switchgrass. They found that switchgrass grew well in areas without topsoil and actually improved the soil in those areas.
“Once a farm loses its topsoil due to erosion, the soil recovers very slowly,” explains Stephen Anderson, the William A. Albrecht Distinguished Professor of Soil Science at MU. “Switchgrass can be grown efficiently on eroded claypan soils; farmers who have lost their topsoil may want to consider growing this hardy plant. Switchgrass can be harvested and sold as a biomass crop for ethanol production or as fuel for power plants. While demand depends on the current market for biomass crops, this could be an answer for these farmers who otherwise have challenges obtaining good economic returns growing grain crops on eroded land.”
The research looked at several farming plots with varying levels of topsoil. The plots were established in 2009 and each plot ranged from extra topsoil to no topsoil. According to lead author Syaharudin Zaibon, a doctoral candidate at MU, corn, soybean and switchgrass were grown on each plot for five years. After this timeframe, the researchers looked at the soil density and water permeability of each plot. What was discovered was that the plots that grew switchgrass had improved soil quality with little or no topsoil on which it grew.
“Claypan layers have lower water permeability, making it more difficult for plants to receive water and for farmers to obtain good economic returns from grain crops when the silt loam topsoil is lost from these areas,” Anderson said. “This lower permeability prevents oxygen and water from seeping into the eroded soil. We found that over a number of years, the switchgrass was able to increase, or improve, the water permeability into this eroded soil, leading to an 11 percent higher water saturation than the areas where corn and soybeans were grown. This study shows that not only can switchgrass grow in these eroded claypan soil areas, but it actually can improve the soil over time, potentially opening the door for better production of grain crops subsequently grown in those areas.”
Duane Martin manages the Agrisure portfolio for Syngenta corn and soybeans. “We’re very proud of the technology we’ve brought to the corn and soybean market over the last several years- launching more new technology, more new traits, to especially the corn business one the last five years than any other company in the industry.”
The Enogen corn technology is expanding, says Martin who adds that Enogen for ethanol provides a 360 degree value. Ethanol plants who use Enogen see increased efficiency, while growers who supply the grain can see up to a 40 cent per bushel premium upon delivery. And this, says Martin, keeps money in the local, rural economies.
As the company has continued to do research on the Enogen traits, they discovered another value for corn growers who are feeding their own beef or dairy herds. “So for those growers feeding their own livestock, we find that Enogen corn can provide a much more digestible, usable high value feed for either beef cattle or dairy herds,” says Martin.
Learn more about Enogen and Syngenta’s other traits in the full interview here: Interview with Duane Martin, Syngenta
Do you know a fuel retailer who has gone above and beyond marketing renewable fuels including ethanol and biodiesel? Then nominate him/her for the Renewable Fuels Marketing Awards. Awards are given for both the sales and promotion of biodiesel and ethanol and the awards are in their 10th year.
“Fuel retailers continue to take steps to make ethanol and biodiesel more available to Iowa customers and this award is an opportunity to recognize those who have shown leadership in promoting these renewable fuels and making them more available to customers,” said Bill Northey, Iowa Secretary of Agriculture.
Nominees will be judged on creative marketing efforts and can include such things as hosting special events highlighting their renewable fuels such as a pump promotion, creative and unique signage, advertising and efforts that dramatically increase renewable fuel availability – for example, adding a blender pump to the retail station that sells mid-level biodiesel and ethanol fuel blends.
Click here for the nomination form. Completed nominations can be submitted via email at or mail at Henry A. Wallace Building, Attn: Dustin Vande Hoef, 502 East 9th Street, Des Moines IA 50319. Nominations must be submitted by Dec. 31, 2016.
With the final 2017 rule for the Renewable Fuel Standard (RFS) in place, a recent Today in Energy looks at a revised biofuels forecast through 2017 published by the Energy Information Administration (EIA). The Short-Term Energy Outlook (STEO) finds that the new rule will have the greatest impact on biomass-based diesel consumption. This category is expected to grow while ethanol consumption is expected to remain largely unchanged.
As explained in Today in Energy, all renewable fuels under the RFS generate Renewable Identification Number (RIN) credits. These are used by obligated parties, such as refiners and importers of gas and diesel, to meet their renewable fuel obligations, or requirements, under the RFS. The Biomass-based diesel RINS, also known as D4 RINS, are more valuable than D6 RINS for grain-based ethanol due to their ability to meet multiple RFS targets. The RIN value plus the blender’s tax credit have helped grow the biomass-based diesel consumption in 2015 and 2016.
In the latest STEO, EIA anticipates that biomass-based diesel consumption will increase from 1.7 billion gallons in 2015 to a record level of 2.5 billion gallons in 2017, 0.5 billion gallons above the biomass-based diesel RFS target of 2.0 billion gallons. The additional biomass-based diesel will help meet the advanced biofuel RFS target.
Ethanol is the most-consumed renewable fuel in the U.S., and plays the largest role in compliance with the RFS target for total renewable fuel. EIA forecasts that ethanol consumption will continue to be driven primarily by domestic gasoline demand. Nearly all motor gasoline sold in the country today is blended with up to 10 percent ethanol, but STEO reports that infrastructure, economic, and distribution issues still limit significant growth in ethanol blends above 10 percent.
