Hero BX Announces Branded Bioheat Program

Cindy Zimmerman

Pennsylvania-based biodiesel producer HERO BX has launched the HERO BX Branded Bioheat® Program, offering heating oil retailers the opportunity to carry the HERO BX brand and supporting technical
and marketing benefits in exchange for Bioheat® supply contracts. The company signed DF Richard Energy of Dover, New Hampshire as its first Bioheat® branded dealer this week.

In conjunction with the new branded dealer program, HERO BX has leased a 5,000-barrel storage facility in North Hampton, NH that will help jumpstart the program. HERO BX invested in the infrastructure
that allows for biodiesel/heating oil rack blends from B2 through B80, allowing branded retail dealers an automated solution for Bioheat® supply and distribution. The company is seeking similar northeast US terminals that will help support the programs growth.

HERO BX manufactures 60 million gallons of biodiesel annually from its plants in Erie, PA and Moundville, AL.

Biodiesel, Bioheat

New USDA Report on Lifecycle GHG Balance for #Ethanol

Cindy Zimmerman

A brand new USDA analysis finds that U.S. corn-based ethanol reduces greenhouse gas emissions by 43 percent compared to gasoline, greater than previous estimates and something the ethanol industry has been saying for years.

Unlike other studies of GHG benefits, which relied on forecasts of future ethanol production systems and expected impacts on the farm sector, the new “Life-Cycle Analysis of the Greenhouse Gas Emissions of Corn-Based Ethanol” reviewed how the industry and farm sectors performed over the past decade to assess the current GHG profile of corn-based ethanol.

“This report provides evidence that corn ethanol can be a GHG-friendly alternative to fossil fuels, while boosting farm economies” said Agriculture Secretary Tom Vilsack.

The report also found that corn-based ethanol is projected to increase to a 50 percent greenhouse gas reduction and could potentially reach 76 percent in 2022 if there is more widespread adoption of optimal crop production and biorefinery efficiency. “This is not your grandfather’s ethanol industry,” said Renewable Fuels Association president and CEO Bob Dinneen in a statement about the new report. “Today’s farmers and ethanol producers use less energy than ever before, have lowered costs with new value-added markets and technologies, and evolved into the most cost-effective, cleanest-burning source of octane on the planet. Moreover, as this study proves, concerns about land use change were terribly overblown, and U.S.-produced corn ethanol is a stone-cold winner for the environment, providing dramatic reductions in greenhouse gas emissions.”

Click to read the report.

Ethanol, Ethanol News, RFA, USDA

China Imposing Duties on U.S. DDGS

Cindy Zimmerman

Almost exactly one year after initiating anti-dumping countervailing duty investigations into U.S. produced distillers dried grains with solubles (DDGS), China’s Ministry of Commerce (MOFCOM) has announced anti-dumping and countervailing duties beginning today. The decision comes just ten days after action by the Chinese government to increase tariffs on imported U.S. ethanol from 5 to 30 percent.

“The U.S. Grains Council is deeply disappointed in this series of events that is a severe departure from our industry’s three decades of broad, cooperative work with China’s government and livestock industry and that follows a year of extensive cooperation on the part of the U.S. DDGS and ethanol industry with MOFCOM investigations,” said USGC President and CEO Tom Sleight in a statement.

The U.S. industry even hosted MOFCOM investigators at several U.S. production facilities, including the Marquis Energy facility in Hennepin, Illinois. CEO Mark Marquis says the tariffs will severely impact what has been the largest market for U.S. distillers feed exports and a growing ethanol export destination. “These tariffs are the poster child of bad trade deals,” said Marquis. “It is our opinion that the Chinese calculations are not in line with WTO trade rules.”

Sleight says the actions do raise serious questions about China’s international obligations and could impact future involvement of the USGC in that country. “This new year marks the 35th anniversary of U.S. Grains Council programs in China,” said Sleight. “The implication of these recent moves is clearly that we are less than welcome in their market, and this will challenge the extent of our engagement with China.”

Ethanol, Ethanol News, Exports, International, USGC

#Ethanol Production Starts 2017 with New Record

Cindy Zimmerman

U.S. ethanol production started 2017 the way it ended 2016 – with a new record.

According to the latest Energy Information Administration (EIA) data analyzed by the Renewable Fuels Association, ethanol production averaged an unprecedented 1.049 million barrels per day the week ending January 6, 2017 — an increase of 6,000 barrels from the last week of 2016’s now-broken record of 1.043 million barrels per day. Stocks of ethanol stood at 20 million barrels, up more than 7% from the last week of 2016.

Weekly production averaged more than 1 million barrels per day for ten straight weeks at the end of 2016, with an annualized rate of 15.90 billion gallons for the year.

Ethanol, Ethanol News, RFA

Iowa Governor Touts Biofuels Success

Cindy Zimmerman

In his 2017 Condition of the State address as governor of Iowa, Terry Branstad touted the state’s leadership in biofuels and promised more for the future as he enters the confirmation process to become the next Ambassador to China under President-elect Donald Trump and Lt. Gov. Kim Reynolds prepares to finish his term.

“We just set an all-time record for ethanol production, set a new record for biodiesel production by an additional 55 million gallons and lead the nation in percentage of electricity generated by wind,” said Branstad, noting that the recently released Iowa Energy Plan “will help build on our past energy successes and reaffirms our commitment to maintaining Iowa’s energy leadership in the future.”

Branstad spoke about the need for a responsible budget in the address, entitled “Smaller and Smarter Government,” but Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw was pleased to see him prioritize funding for the Renewable Fuels Infrastructure Program (RFIP). “This cost-share program has leveraged millions of dollars of private investment for equipment to provide consumers the option of higher ethanol and biodiesel blends,” said Shaw. “The demand for this program remains strong and the $3 million in proposed funding is dearly needed.”

Branstad served as governor of Iowa from 1983 to 1999, then ran and again and was elected in 2011. He was elected to an unprecedented sixth four-year term as Iowa governor in 2014 and is the longest-serving governor in history.

Biodiesel, Ethanol, Ethanol News

Ethanol Exports Grew Again in November

Cindy Zimmerman

U.S. ethanol producers exported nearly 122 million gallons of ethanol in November, the third-largest monthly total in five years, according to the Renewable Fuels Association. Year-to-date exports as of November totaled 947.4 million gallons. Brazil was the top market again in November, followed by Canada and China.

Shipments to Brazil jumped to 50.9 mg in November, representing 42% of the monthly total and making Brazil the top destination for U.S. ethanol for the second straight month. Exports to Brazil have been rising steadily since May, when the country recorded 6 mg of imports from the U.S. Canada scaled back from the prior month as 24.8 mg (20% of U.S. ethanol exports) moved north of the border in November. Meanwhile China increased its purchases of U.S. ethanol, pulling in 19.8 mg (16%) and the country’s largest monthly volume since April. With over three-fourths of total exports heading to the Big Three, the remaining volumes headed to India (11.3 mg, or 9%), Peru (5.1 mg, or 4%), South Korea (3.9 mg, or 3%) and Mexico (2.8 mg, or 2%). With only one month left in the calendar year, it’s still a toss-up between Canada and Brazil as our largest customer for 2016 as each maintained 24% of U.S. ethanol exports, with China falling behind at 19%.

Click to read more of RFA’s analysis.

Ethanol, Ethanol News, Exports, RFA

Poll Finds Trump Voters Support #Ethanol

Cindy Zimmerman

Growth Energy has just released a new poll that shows overwhelming support for ethanol among Trump voters.

The survey of 3,000 Trump voters in the Midwestern battleground states of Michigan, Wisconsin, Ohio, Iowa, Indiana and Minnesota found over 80 percent respondents agree with President-elect Donald Trump’s support for ethanol and believe it is important to American jobs and energy security.

According to the poll, conducted between December 6 and 22 by Quadrant Strategies, 83 percent of those polled agreed with the President-elect’s campaign promise to promote the addition of more ethanol in America’s fuel supply, while 85 percent said ethanol was important to U.S. energy security and 88 percent indicated that ethanol was important to creating American jobs.
Read more from Growth Energy.

Ethanol, Growth Energy

EPA Extends Comment Periods

Cindy Zimmerman

In response to requests by the industry, the Environmental Protection Agency (EPA) has agreed to extend the comment periods for the proposed Renewable Enhancement and Growth Support (REGS) Rule and proposed denial to change the Point of Obligation.

The REGS comment period was schedule to end on January 17, but EPA received a joint request for an extension of the comment period from various industry organizations including the American Soybean Association, Growth Energy, National Biodiesel Board, Renewable Fuels Association, and U.S. Canola Association for more time to evaluate the implications of the rule. The new deadline it February 16.

The proposal denial of petitions comment period, which was originally scheduled to close January 23, has been extended through February 22.

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Biodiesel, EPA, Ethanol, Ethanol News

RFA Analysis: #Ethanol Helped Fuel Trump Win

Cindy Zimmerman

An analysis by the Renewable Fuels Association (RFA) shows how corn farmers and ethanol producers helped send Donald Trump to the White House.

RFA map shows counties that flipped to Republican between 2012 and 2016 with a big portion being in the corn belt

RFA president and CEO Bob Dinneen writes about the analysis in The Hill today, pointing to maps that show the counties that “flipped” in the 2016 election.

“(T)hese 218 counties were won by President Obama in 2012, but went to Trump in 2016,” writes Dinneen. “It is these “swing counties” that were ultimately responsible for tipping the scales and securing Trump wins in the battleground states of Iowa, Wisconsin, Ohio, Michigan, and Pennsylvania—states that voted for Obama in 2012.”

RFA’s analysis shows there are 33 ethanol plants located in the swing counties, which account for a substantial share of the nation’s corn and ethanol production, growing 1.97 billion bushels of corn and producing 2.8 billion gallons of ethanol in 2015. RFA found that 133 of those countries produced more than 1 million bushels of corn and are responsible for producing about 15% of the nation’s corn and nearly 20% of its ethanol.

Interesting analysis – read more here.

Ethanol, Ethanol News, politics, RFA

GROWMARK Acquires Propane Terminal and Truck Center

Cindy Zimmerman

GROWMARK announced two acquisitions in the fuel business this week.

First, GROWMARK has acquired a propane terminal in New Hampton, Iowa with nearly one million gallons of total storage capacity. The terminal will be used primarily to serve area FS companies and local retailers, and will be utilized in conjunction with its rail propane terminal in nearby Mason City, Iowa.

In addition, GROWMARK acquired the assets of L.T. & E., Inc., a family owned and operated tank and truck manufacturer and repair facility based in Arcola, Illinois that works exclusively on vacuum and fuel delivery vehicles. The acquisition gives GROWMARK Tank & Truck Center its sixth shop location with three others in Illinois and two in Iowa. GROWMARK Tank & Truck Centers as state-of-the-art production centers that manufacture delivery trucks for the liquid fuel, propane, and bulk oil industries.

GROWMARK, Propane