NEB Unveils Spill Prevention Plan

Joanna Schroeder August 31, 2016

The Nebraska Ethanol Board (NEB) has partnered with the University of Nebraska-Lincoln’s College of Engineering’s Partners in Pollution Prevention program to develop a new Spill Prevention, Control and Countermeasures (SPCC) plan for agriculture producers who maintain their own fuel storage.

General fuel set up at Nebraska farm.

According to the Environmental Protection Agency (EPA), fuels are hazardous materials, and as such, handling or storing them improperly can pose a risk to health and the environment. Therefore it is important that measures are taken to prevent even a small amount of fuel spilling and affecting the environment.

“The main benefit of the project is bringing agriculture producers in compliance with EPA regulations, so if a spill were to occur, the producer can mitigate any environmental damage and also reduce costly fines and associated cleanup,” explained Todd Sneller, NEB administrator. “If agriculture producers are not in compliance with EPA regulations, they run the risk of halting fuel deliveries to their operation.”

To assist producers in becoming compliant with the regulations, multiple tools and documents were developed to simply the process. Producers can find the information by clicking here.

Agribusiness, biofuels

Wayne Standardizes Retail Fuel Dispensers for E25

Cindy Zimmerman August 30, 2016

Wayne Fueling Systems announced today that all Wayne North American retail fuel dispensers will be supplied as compatible and UL-Listed to E25 (25 percent ethanol and 75 percent petroleum) as a standard feature. The shift from the standard Underwriters Laboratory Listing of E10 to E25 is effective immediately for Wayne Ovation fuel dispensers and by year-end for the Wayne Helix family of dispensers.

“We are pleased to be the first manufacturer to offer E25-Listed dispensers as standard to our North American dispenser product offering, reflecting the growing interest from our customers to prepare for any and all necessary changes to the fueling infrastructure in the future,” said Wayne VP of Products and Services, Tom Cerovski. At this time, 90 percent of dispensers in the industry are only certified to dispense E10 fuel.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen applauded Wayne’s leadership to help retailers and the ethanol industry meet the increasing demand for higher biofuel blends across the nation. “As the demand grows for high octane, low carbon, low cost ethanol, due to compliance with the renewable fuel standard and with more stringent national fuel economy standards, it is important fuel dispensing equipment keeps up with the changes. We are proud that Wayne Fueling System is leading the charge,” said Dinneen.

With the potential shift to higher ethanol blends necessary to meet future fuel requirements brought about by more stringent CAFE standards and GHG reductions by 2025, this move is an expression of Wayne’s continued intent of supplying its customers with the most flexible, reliable and future-proof equipment options.

blends, Ethanol, Ethanol News, Retailers, RFA

Diesel Dogs 1st Distributor in Minn to offer #E15

Joanna Schroeder August 30, 2016

St. Paul based Diesel Dogs Fuel Service is the first distributor to offer pre-blended E15 in Minnesota. This week the company delivered its first gallons of E15 to its municipal and corporate fleet customers in the Twin Cities. And just around the corner, Diesel Dogs will be offering E15 to retail customers.

“We hope that by taking the initiative to market E15 to our ever increasing customer base, that we can increase renewable energy awareness to the general public and at least offer them a choice that will benefit all of us in the long term,” said Kevin Harvey, CEO of Diesel Dogs.

Much of the fuel sold at retail stations, such as regular unleaded including E10 and E85, are purchased at fuel terminals. However, until Diesel Dogs Fuel Service began offering pre-blended E15, there were no fuel terminals in the state offering the renewable fuel. Because of this, many retailers blended their own E15 at their stations by installing blender pumps. Now, retailers can offers consumers more choice at the pump without having to install new infrastructure. In rare cases where the infrastructure isn’t compatible with E15, stations will only need to make minor modifications to their equipment to make it E15-compatible.

“Diesel Dogs added E15 to our family of products to advance our position as a clean fuel provider reducing emissions. By doing this, our customers and potential new customers will be able to lower by-products released into the air we breathe,” said Doug Daniels, Fuel and Lubricant Specialist at Diesel Dogs.

According to the Minnesota Bio-Fuels Association, in the first half of this year, 2.77 million gallons of E15 was consumed in Minnesota, which was 90 percent of the total volume sold in 2015 (3.09 million gallons).

“We’ve seen a growing demand for E15 but pre-blended E15 has not been available and this has prevented the market from growing. We worked with Diesel Dogs to fill this significant void in the market,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association. “Thanks to Diesel Dogs and their pioneering initiative, these retailers can now easily offer E15 and provide consumers with more choices. The data shows Minnesotans want to fuel up with E15.“

biofuels, E15, Ethanol, Retailers

BioEnergy Bytes

Joanna Schroeder August 30, 2016

Mark your calendars for several upcoming conferences….

The 2016 Energy Conference is taking place in Des Moines, Iowa September 19-21, 2016. The event brings together public and private entities to discuss energy policy, climate change (carbon credits) and to network. According to event planners the purpose of the event is to “create profit-driven opportunities that accomplish the goals of an energy independent future for America.” Click here for more information and to register.
The Christianson & Associates 12th annual Biofuels Conference is taking place October 17-18, 2016 at the Hyatt Regency in Minneapolis, Minnesota. This year’s theme is Maximizing Profitability & Ensuring Future Stability. Click here for more information and to register.
The Advanced Bioeconomy Leadership Conference (ABLCNext) is taking place November 2-4, 2016 in San Francisco, California. The theme of this year’s event is What’s Next in the Advanced Bioeconomy? Breakthrough materials, nutrition, chemicals, and fuels are changing strategies, markets, business models and customer sets. At ABLC, emerging players and established brands spotlight their latest actions in advanced technology and sustainability. Click here to learn more and to register.
Low-carbon alternative energy will be the focus of a new Canadian conference. “Scaling Up: Delivering Canada’s low carbon, biobased economy through sustainable innovation,” is set for Nov. 14-16 at the Fairmont Chateau Laurier hotel in Ottawa. The event will present ways to address GHGs through the widespread use of bioplastics, biochemicals, bioenergy and advanced biofuels.” Click here for more information and to register.

Bioenergy Bytes

Glacial Lakes In Midst of Premium E30 Challenge

Joanna Schroeder August 30, 2016

From left to right: Dale Christensen, Glacial Lakes Energy; Joanna Schroeder, Energy.Agwired.com; and Mark Schmidt, Glacial Lakes Energy, discuss the Premium E30 Challenge during the 29th Ethanol Conference.

The ethanol industry knows that one area for the growth of the renewable fuel is through mid-level ethanol blends such as E30. The auto industry is calling for more octane and has indicated that ethanol is one great solution with E30 as the ideal blend. While the two industries seem to be on the same page when it comes to E30, others are not. One way to overcome this barrier, as mentioned by many during the 29th annual ACE Ethanol Conference including fuel experts Dave Hackett, president of Stillwater Associates and Kelly Moore, KMoore Consulting, is that more research on E30 is needed and needed now. Glacial Lakes Energy has heeded the call and several weeks ago launched a Premium E30 challenge in their local community, Watertown, South Dakota. To learn more about the initiative, I spoke with Dave Christensen, Treasurer of the Board, and Mark Schmidt, Board Chairman. I should note that Glacial Lakes Energy was awarded the President’s Award for their ethanol promotional efforts.

The program was borne out of two key issues: the fight against the blend wall, and increasing CAFE standards. By 2025, vehicles must achieve an average of 54.5 miles per gallon (mpg). Schmidt said the auto industry is really close to saying they need ethanol because they need 94 octane, and low and behold, E30 is 94 octane.

Christensen explained that Watertown is an ideal location for the Challenge because they have about 20 blender pumps at six locations selling E30. What they have seen in June and July is an increase in sales of 600 percent. He noted that everyone was worried about check engine lights but so far there have been none.

But more specifically, how does the Premium E30 Challenge work? Schmidt said they have taken several dozen independent vehicles from people in the community who are not associated with the ethanol plant, and first gave them a little check up to ensure the vehicle and its engine was in good condition. Next, Schmidt said they put a data logger on each vehicle then provided each tester with three tanks of E10 and then provided three tanks of E30.

Glacial Lakes Energy Premium E30 Challenge team.

“And that data logger logs every function of that vehicle throughout those six tanks of of fuel,” explained Schmidt. “We haven’t gotten all the data logger data back yet but what we have seen so far is no check engine lights. We might have seen one vehicle with a very, very small loss in miles per gallon, but every car we’ve seen a substantial increase in horsepower and torque. It’s been a great success, and we’ve seen nothing at this point that E30 is going to cause any problems.”

Christensen said they are using all different vehicles and the “tale will come out” when all the data comes in. “But that will be the proof, I think, that ethanol is the fuel of the future.”

Glacial Lakes plans on sharing the final data and encourages all ethanol plants to carry out the same, if not similar, research in their local communities so the data can be shared with the auto industry and the EPA. Both Dale and Mark are also encouraging ethanol plants to contact them directly to learn more about their Premium E30 Challenge and are volunteering to assist any and all ethanol plants who would like to launch similar programs.

To learn more about the E30 Challenge, and selling RIN-less ethanol, listen to my interview with Mark Schmidt and Dale Christensen here: Glacial Lakes E30 Challenge

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, blends, Ethanol, Octane, Promotion

MN Rep Tim Walz Visits Al-Corn Clean Fuel

Joanna Schroeder August 30, 2016

Minnesota Rep. Tim Walz (D) recently visited Al-Corn Clean Fuel, located in Claremont, Minnesota, on August 24, 2016 to learn more about ethanol and the biorefinery’s upcoming expansion. Rep. Walz also took the opportunity to reiterate his support for Minnesota-produced biofuels. While at the ethanol plant, who recently celebrated its 20th anniversary, Walz was briefed on Al-Corn’s $146 million expansion exercise that will provide a significant boost for the economy in Claremont and its surrounding towns.

Rep. Tim Walz talks to Randall Doyal On Al-Corn’s Expansion Plans

“Visiting Al-Corn in Claremont is such a wonderful reminder that we can use our American ingenuity to control our own energy destiny and revitalize our economy at the same time. I am proud of the work we do in southern Minnesota to create a new energy future for our nation and the innovation that moves us forward,” said Walz.

Al-Corn’s expansion will raise the plant’s annual production capacity from 50 million gallons per year to 120 million gallons of ethanol per year. Once completed, Al-Corn will be one of the largest ethanol producers in the state.

“Over the last 20 years, Al-Corn has supported the economy of Minnesota and our rural communities and we will continue to do so. Once we have completed our modernization and expansion project, we will be able to create additional value for farmers in the region, produce more livestock feed and biodiesel feedstock, and provide Minnesota’s transportation sector with more clean, renewable fuel,” said Randall Doyal, Al-Corn’s CEO.

(from left to right) : Todd Thoen (Al-Corn board director), Tim Rudnicki, Rep. Tim Walz, Randall Doyal, Rodney Jorgenson (Al-Corn board chairman) and Roger Toquam (Al-Corn board secretary).

During the visit, which was organized by the Minnesota Bio-Fuels Association, Walz said the huge jump in E15 sales in the first half of the year in the state was proof that Minnesotans want clean homegrown renewable fuels. In the first half of the year, Minnesota Bio-Fuels Association reported that E15 sales in Minnesota reached 2.77 million gallons, 90 percent of the total amount sold in 2015 (3.09 million gallons).

Tim Rudnicki, executive director at the Minnesota Bio-Fuels Association, added, “Congressman Walz’s visit today highlight’s his commitment to clean renewable biofuels and the Renewable Fuel Standard (RFS). Thanks to the RFS, the ethanol industry supports over 18,000 jobs and contributes $2 billion to the state’s economy. Every dollar spent on ethanol in Minnesota keeps that dollar in our state and reduces harmful CO2 emissions.“

biofuels, E15, Education, Ethanol

ERC of Mexico Releases #Ethanol Blending Regs

Joanna Schroeder August 29, 2016

The Energy Regulatory Commission of Mexico (CRE) has published new fuel regulations that allow for the blending and sale of up to 5.8 percent ethanol in the country’s fuel supply outside of three major metro areas of Mexico City, Guadalajara and Monterrey. The new fuel regulations will become effective in 60 days after publication, which took place today. This marks the first time in Mexico’s history that the country has established a policy of ethanol. Several U.S.-based organizations have been working to promote the export of American made ethanol and applauded this development.

“By approving new fuel standards that allow for ethanol blending at 5.8 percent rate throughout much of the country, the Mexican Energy Regulatory Commission has taken an important step forward in improving the quality of motor fuel provided to its citizens,” said Emily Skor, CEO of Growth Energy.

Skor continued, “These standards aren’t applied universally throughout the entire country, however, so there is certainly more progress to be made. Ethanol is a cleaner burning fuel additive that increases octane and reduces reliance on toxic cancer-causing additives. Our collective goal should be greater harmonization across all of North America on fuel regulations that embrace cleaner burning biofuels like ethanol because that is in the best interest of every mother, father and child. Growth Energy will continue to work with our public and private sector colleagues in Mexico to clearly demonstrate the value of ethanol to their environment, water quality, rural sector and consumers.”

Tom Sleight, president and CEO of the U.S. Grains Council, said of the announcement, “We are pleased to see Mexico begin to embrace the inclusion of fuel ethanol in their gasoline. The U.S. Grains Council has worked in Mexico for many years and has seen enormous growth in that market’s demand for U.S. products of all types in the past two decades. We welcome this positive development related to ethanol use and what it could mean for furthering of the U.S.-Mexican trade partnership.”

He continued, “We look forward to continuing to work with our colleagues in the U.S. ethanol industry to provide Mexican regulators, fuel industry officials and the public with information that highlights the proven benefits ethanol can provide for air quality and rural economic development in their country. We are hopeful that all of Mexico will be able to achieve these benefits from ethanol use soon.”

Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA), said, “The Mexican Energy Regulatory Commission should be commended for recognizing the positive role ethanol can play in advancing that country’s energy, economic and environmental policies. Ethanol blended gasolines can reduce all criteria pollutants – carbon monoxide, ozone, particulates and toxics. As a result, we believe the Commission has erred in excluding ethanol use from the three most populous cities.”

Dinneen added, “We will continue to work with our partners here and the Mexican government to assure the most up-to-date science is applied, providing the Commission with confidence the use of ethanol will help them in their effort to fight ozone pollution and provide a more open and competitive market for the benefit of Mexican consumers.”

Ethanol, Exports, Growth Energy, RFA, USGC

BioEnergy Bytes

Joanna Schroeder August 29, 2016

St1 Nordic Oy’s Norwegian subsidiary, Smart Fuel AS, has signed a letter of intent with Viken Skog SA and its subsidiary Treklyngen Holding AS to construct a Cellunolix ethanol plant in Norway. St1’s aim is to construct a Cellunolix ethanol plant in the industrial area of Follum in Hønefoss. The planned production capacity of the plant is 50 million liters of advanced cellulosic bioethanol for transportation, using local forest industry residues as feedstock.
According to the U.S. Energy Information Administration’s (EIA) latest, just-released “Electric Power Monthly” report, net U.S. electrical generation from non-hydro utility-scale renewables (i.e., biomass, geothermal, solar, wind) increased by 17.0% compared to the first half of 2015. Output from conventional hydropower also rose by 11.8%. Combined, generation from all utility-scale renewable sources increased by 14.5% in January-June 2016 compared to the same period in 2015.
ScottMadden, Inc. has released its newest edition of The Energy Industry Update. This semi-annual report provides bottom-line insights, distills recent events, and helps prepare for emerging trends. FERC, the states, and the EPA are pushing and testing the boundaries of their traditional jurisdictions to pursue their respective policy priorities. Some playing fields for contested jurisdiction include demand response compensation, power generation markets and price formation, and environmental regulation of the power sector. This report provides a summary of the policies under debate, each side’s arguments, and litigation outcomes or potential next steps.
The Center for the New Energy Economy (CNEE) has released the third paper in a Summer Series on Energy Efficiency and Renewable Energy Policy. This paper examines historical adoptions and future target dates of Renewable Portfolio Standards (RPSs). By 2026, 29 RPS target dates will have been reached. This paper offers suggestions for mitigating the potential impacts on market certainty associated with expiring RPSs. Paper 4, soon to be released, will focus on integrating corporate renewable energy goals into regulatory planning.

Bioenergy Bytes

#Ethanol Plant to Gas Station Lowers Pump Prices

Joanna Schroeder August 29, 2016

Ethanol provides consumers savings at the pump – especially when the retailer passes along the RIN (Renewable Identification Number) savings to their customers. No one knows this better than Dave Sovereign, Chairman of the Board of Directors at Golden Grain Energy, and owner and investor of Cresco Fast Stop in Cresco, Iowa. I was able to sit down with Sovereign during the 29th annual Ethanol Conference and we first spoke about the evolution of the Cresco Fast Stop.

Sovereign explained that when he, along with 28 other investors, were unable to persuade a local retail station to offer mid-level and higher level blends of ethanol, such as E15, E30 and E85, they decided to build their own ethanol station. The dream became reality in 2012 with the help of some grants, and today the station offers E10, E15, E20, E30 and E85. They also sell biodiesel – B5 and B10.

“And our numbers show, when you pass on the RIN value to the customers, there is no blend wall,” said Sovereign. “Over 30 percent of our sales are E85, and almost 30 percent of our sales are E30. We’re selling 10 percent of our sales as E15 (not allowed to see E15 June 1 through September 15th). We’re very pleased. Two-thirds of our gasoline sales are blends higher than the standard E10.”

Of interest is that when Cresco Fast Stop first opened for business, the station purchased its fuel through a distributor. But the next year the station began purchasing its ethanol direct from Absolute Energy. Sovereign said that he is also on the board of directors for Absolute Energy and the board began discussing how the RIN values were not being passed along in many cases to consumers.

“And we felt that in order to really increase sales of our product and to showcase ethanol and what a great product it is, we felt we needed the price to be competitive and actually buy our way into the market,” Sovereign explained. “This seemed like a really good opportunity for Absolute Energy to make that investment and for stations to get on board with the program. And I believe a lot of stations who are buying direct from the plant are in fact passing along the RIN value back to their customers and that’s driving sales.”

To learn more about the benefits of selling ethanol blends and the opportunities for retailers to purchase ethanol direct from an ethanol plant, listen to my interview with Dave Sovereign here: Interview with Dave Sovereign

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, biofuels, E15, E85, Ethanol, Retailers

ICM to Purchase Colwich, KS Abengoa Bioenergy Plant

Joanna Schroeder August 29, 2016

Abengoa Bioenergy’s U.S. assets have been sold under the provisions of the U.S. Bankruptcy Code, and their biorefinery located in Colwich, Kansas was purchased by Colwich-based ICM. The ethanol facility was sold by $3.1 million.

“ICM values this location in Colwich, Kan., and we are evaluating the best way to exercise that opportunity,” said Dave VanderGriend, founder and CEO of ICM, Inc. “We continue to focus our efforts on developing solutions that deliver value-added product streams to the renewable energy industry.”

The company’s acquisition agreements are subject to review and approval by the U.S. Bankruptcy Court for the Eastern District of Missouri at a hearing currently scheduled for Aug. 29, 2016. The acquisitions are expected to be complete no later than Sept. 30, 2016, subject to regulatory approval and customary closing conditions, at which time the asset will be offered to ICM, Inc.

biofuels, Ethanol

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