#Ethanol Report from #ExEx16

Cindy Zimmerman

exex16-signExport Exchange 2016, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC), was held this past week in Detroit, Michigan with over 400 attendees, including some 200 international buyers and end users from more than 35 countries. The event is held every other year to bring together international buyers and domestic suppliers of coarse grains and ethanol co-products used for animal feed.

In this edition of The Ethanol Report, we hear from RFA CEO Bob Dinneen, USGC CEO Tom Sleight, RFA Senior VP Geoff Cooper, USGC Manager of Global Trade Alvaro Cordero, and USGC Mexico City Director Ryan LaGrande about the event and opportunities for exports of ethanol co-products.

Ethanol Report from Export Exchange

2016 Export Exchange Photo Album

Audio, corn, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Export Exchange, Exports, RFA, USGC

Growth Energy Talks Ethanol with FFA

Jamie Johansen

ffa-16-269-editedFFA students already understand the importance of ethanol to rural communities and national security, says Cory Harris of Growth Energy and American Ethanol.  That’s why they’ve chosen this special group of agriculture students to focus the message of performance.

“Our message here at National FFA Convention, […] we really wanted to focus this year on engine performance with Ethanol,” Harris told Jamie Johansen.

Many of the students at the event knew ethanol was corn based, and some related it to racing, but the team at Growth Energy wanted to go a little further.  They brought in a racing boat and experts to share with the future of agriculture just how proficient this alternative fuel can be.  Students can be skeptical about how it will work for them, Harris explains.  Their goal is to assure members that the product works great in small engines too, like their car or lawn mower.

The Convention provides a great place for students to talk about the science behind the product, but it will also provide the opportunity for a student to attend a NASCAR race and see ethanol in action with a drawing for free tickets.

Learn more about Growth Energy and their goals for FFA in Jamie’s interview: Interview with Cory Harris, Growth Energy

Be sure to check out even more action by viewing the 89th National FFA Convention & Expo Photo Album.

Coverage of the National FFA Convention is sponsored by
Coverage of the National FFA Convention is sponsored by FMC
Coverage of the National FFA Convention is sponsored by New Holland
Ag group, American Ethanol, Audio, Ethanol, Growth Energy

NBB Reinforces Need for Biodiesel Tax Incentive

Joanna Schroeder

The National Biodiesel Board (NBB) is reinforcing the need once again for the biodiesel tax incentive. On behalf of America’s biodiesel producers, the association sent a letter to House and Senate tax committee leaders urging the extension of the incentive prior to its expiration on December 31, 2016.

National-Biodiesel-Board-Logo“We strongly urge you to extend the biodiesel tax credit and take this opportunity to make a simple, common-sense reform by focusing the credit on U.S. production,” said Donnell Rehagen, Interim NBB CEO in the letter. “Legislation pending before Congress – S. 3188 and H.R. 5240 – would accomplish these objectives by extending the incentive through 2019 and changing it from a blender’s credit to a domestic producer’s credit. The legislation has strong support from American biodiesel producers and strong bipartisan support in both the House and Senate – reflected last year when a similar proposal passed the Senate Finance Committee.”

As noted by NBB, the growth of the industry has provided many benefits including reducing emissions, strengthening energy security, creating jobs and economic activity. Today the biodiesel industry supports nearly 48,000 U.S. jobs and $1.9 billion in wages.

The letter continued, “Many biodiesel producers who are now poised to expand and hire would likely cut jobs and production. Congress can avoid this with a long-term extension giving producers the policy stability they need to plan for the future.”

According to NBB, there are more than 1.5 billion gallons of unused production capacity that stands ready to be utilized under the right policy framework. Mobilizing that capacity would create thousands of jobs and billions of dollars in economic activity. Additionally, reforming the incentive would save the Treasury some $90 million as imports are reduced and domestic production rises, according to the Joint Committee on Taxation.

As noted in a previous post, under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. More than ever, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel was imported to the U.S., making up nearly a third of the U.S. market. However, a version of the biodiesel tax incentive would eliminate the ability for foreign produced biodiesel to be eligible for the tax credit.

advanced biofuels, Biodiesel, NBB

Christopher Hogan Joins Growth Energy

Joanna Schroeder

chris-hogan_headshot

Christopher Hogan has joined Growth Energy as their new Vice President of Communications and Public Affairs. In this role, Hogan will oversee all aspects of the organization’s efforts to raise awareness of ethanol’s importance as America’s leading source of clean, affordable, homegrown energy.

“I’m excited to join the dynamic team at Growth Energy and help shape a new generation of best-in-class communications strategies across advocacy, public relations and social media,” said Hogan. “The ethanol industry encompasses some of the country’s most passionate entrepreneurs, innovators and advocates. I can’t wait to help bring more of those voices into the conversation about America’s future, share their stories with consumers and drive the debate among policymakers.

Hogan joins Growth Energy from the International Bottled Water Association (IBWA), where he served since 2011 as Vice President of Communications. In that role, he represented the industry in U.S. and international publications and managed award-winning public relations efforts designed to strengthen IBWA’s role as a thought leader at the local and national level on industry, environmental, health, safety and consumer issues.

America’s biofuel industry continues to grow, opening new and exciting opportunities to engage with consumers, business leaders and policymakers,” said Emily Skor, CEO of Growth Energy. “Chris’ deep understanding of association management, energy policy and consumer engagement make him a perfect fit to lead those conversations. With the addition of his expertise, Growth Energy will continue to break new ground in our efforts to deliver better, cleaner choices at the pump.

Company Announcement, Growth Energy, Uncategorized

Trump Leading Farm Country in Agri-Pulse Poll

Joanna Schroeder

screen-shot-2016-10-26-at-11-19-41-pmA new nationwide poll commissioned by Agri-Pulse reveals that a majority of farmers and ranchers favor Donald Trump over Hillary Clinton in the 2016 presidential race. Fifty-five percent of those surveyed said they support Republican Trump while 18 percent indicated they support Democrat Clinton. Only 2 percent plan to vote for Libertarian candidate Gary Johnson and just 1 percent for the Green Party’s Jill Stein. With only two weeks until the election, 15 percent of those surveyed said they were undecided and 8 percent did not answer the question.

When the results are broken down between male and female respondents, 59 percent men and 37 percent women indicated they would vote for Trump while 15 percent males and 33 percent females responded with support for Clinton. Eighteen percent women indicated they were undecided. The GOP nominee scored particularly well in two battleground states, with support from 68 percent of the farmers and ranchers in Ohio and 58 percent in Florida.

screen-shot-2016-10-26-at-11-19-50-pmCompared to a similar Agri-Pulse poll conducted in late January, respondents indicated an even greater dissatisfaction with the direction of the country, the farm economy and the regulatory environment.

When asked if they were satisfied or dissatisfied with the way things are going in America, 86 percent said they were “somewhat” or “very dissatisfied.” That indicates an uptick from another Agri-Pulse poll conducted in late January of this year. At that time, slightly over three-quarters of the voters surveyed were dissatisfied with the direction of the country. Those levels of dissatisfaction were at 90 percent or higher in Florida, North Carolina, Pennsylvania and Ohio.

“Economic growth” rose to the top when respondents were asked to identify the one most important issue facing this country heading into the 2016 presidential election, with about 19 percent nationally selecting this option, up from 9 percent in January. That was the choice of about 19 percent of the Republicans, 16 percent of the Democrats and 18 percent of the Independents.

That represents a substantial shift from the January poll, when 19 percent of Republicans and Democrats listed “national security/terrorism” as their top choice, followed by “moral values” at 14 percent, “immigration/ag labor” at almost 14 percent and “deficit reduction” at 13.5 percent. In the October poll, the second most important issue selected was “deficit reduction,” favored by about 16 percent, followed by “moral values” at 12 percent nationally. National security and terrorism dropped down to 7 percent. Read More

Agribusiness, Farming, Opinion, politics

Keeping Exports on the Move

Cindy Zimmerman

exex16-eriksenWith yet another record grain crop this year, having the transportation infrastructure to keeping it moving is more important than ever.

“Transportation is everything,” said Ken Eriksen with Informa Economics at this week’s Export Exchange, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council.

Eriksen says grain exports are expected to set a record this year at 5.4 billion bushels of grain by the end of this year. “During October, November and December, we’re going to be running about 1.9 billion bushels of exports,” he said. “To do that we’re going to be running about 150 million bushels a week out of the United States.” Because that pace has not been met in the first part of October, Eriksen says it will have to jump up to as much as 180 million bushels for the rest of the year. “The best we’ve ever done in one week is 148 million and that was one year ago.”

“This year is going to be about as good as it gets for moving grain, soybeans, DDGS and other products out of the United States,” said Eriksen. “The challenge for the industry is to continue to encourage investment in infrastructure.”

Listen to Eriksen’s presentation here: Ken Eriksen, Informa Economics at Export Exchange

2016 Export Exchange Photo Album

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, corn, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, RFA, transportation

Supply Demand Outlook for DDGS at #ExEx16

Cindy Zimmerman

exex16-geoffAt Export Exchange 2016 in Detroit this week, Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper delved into the supply-demand outlook for U.S. ethanol industry co-product exports, with a focus on distillers dried grains with solubles (DDGS).

“We’re looking at record ethanol production this year, so obviously we’re going to be producing a record amount of distillers grains as well, somewhere around 37-38 million metric tons,” said Cooper. “That’s easy to figure out but what gets tricky is the demand side.”

In the domestic market, Cooper says demand is bright. “We are looking at record numbers of hogs and poultry in the U.S. and obviously those animal eat a fair amount of distillers grains,” he said. In addition, dairy cow inventories are at a 20-year high and cattle on feed numbers are increasing. “So, we’re looking at record feed demand in the U.S., and that bodes well for distillers grains.”

On the export side, Cooper says the industry is exporting about 12 million tons, or one-third of the distillers grains produced right now, with just ten countries making up the bulk of that. “We’ve seen dramatic growth in exports in the last decade, but a lot of that has been tied to the Chinese market,” said Cooper. China accounted for as much as half of DDGS exports two years ago, but that has fallen dramatically in the past year. “Fortunately, when we’ve seen losses in China, we’ve seen increases in exports to other markets,” he said. In fact, exports of U.S. DDGS to Mexico, Vietman, South Korea and Turkey all increased significantly in this past marketing year.

Learn more in this interview: Interview with Geoff Cooper, RFA

Check out Cooper’s power point presentation here.

2016 Export Exchange Photo Album

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, livestock feed, RFA

Weltec Biopower Showcases Biogas Technologies

Joanna Schroeder

Weltec Biopower is showcasing its biogas technologies during the upcoming Energy Decentral in Hanover, Germany taking place November 15-18, 2016. For the first time, the company will promote its slurry and digestate processing system “Kumac.”

For the first time, WELTEC will showcase the efficient slurry and digestate processing system “Kumac“. The fully automated processing system “Kumac“ reduces the liquid manure and digestate volume by 50 percent. Photo credit: Weltec Biopower

For the first time, WELTEC will showcase the efficient slurry and digestate
processing system “Kumac“. The fully automated processing system “Kumac“
reduces the liquid manure and digestate volume by 50 percent. Photo credit: Weltec Biopower

According to the company, the system, which is fully automated, reduces the liquid manure and digestate volume by 50 percent. In a four-stage procedure, clear water, liquid fertilizer concentrate and valuable solid matter are extracted from the source material that Weltec Biopower explains represents a sustainable, economic solution for mitigating the impact of the nutrient surplus by reducing the volume of slurry and improving its transportability. The Kumac technology has already been successfully used in the Netherlands and Belgium.

Weltec will also be featuring the MULTIMix, a retrofittable liquid input system for biogas plants that the company says reliably shreds fibrous feedstock and separates foreign matter. It enables operators the ability to make use of alternative substrates, thereby ensuring flexibility, technical stability and sustainably economic operation of biogas plants.

In addition to showcasing its own technology, the company will also offer show attendees recommendations as to how they can optimize existing biogas plants. Based on a thorough analysis of the respective framework conditions, the biogas specialists will prepare a custom-tailored concept for the improvement of the plant performance – regardless of how old the plant is and no matter whether waste or agricultural substrates are used.

biogas, Waste-to-Energy

Which Candidate is Better for Agricultural Exports?

Jamie Johansen

zp-nh1Our latest ZimmPoll asked the question, “What is most important to food sustainability?”

Sustainability is no longer simply a word used in agricultural circles. Consumers are also weighing in and therefore food companies are recognizing the importance of sustainability in agriculture, but some aren’t understanding technology and food production work hand-in-hand. Yet, this poll stresses agriculture’s point. All factors need to come into play when we talk sustainability.

Here are the poll results:

  • Biotechnology – 14%
  • Precision technology – 0%
  • Nutrient management – 4%
  • Water management – 8%
  • Ag education – 13%
  • All of the above – 53%
  • Other – 8%

Our new ZimmPoll is live and asks the question, Which candidate is better for agricultural exports?

Both major party candidates have said they are opposed to the Trans Pacific Partnership which most studies show would help to open up markets and increase agricultural exports. The Obama administration has been strongly in favor of TPP and urging Congress to ratify the trade agreement as soon as possible, but that will not likely be before the end of the year, leaving it in the hands of the next president and a new Congress. So, which candidate would be better to help increase ag exports?

ZimmPoll

Researchers Create Better Algae Oil Producers

Joanna Schroeder

Researchers have discovered a way to make algae better oil producers without sacrificing growth. The team, led by James Umen, Ph.D., associate member at Donald Danforth Plant Science Center, found a mutation in the green alga Chlamydomonas that substantially removes a constraint that is widely observed in micro-algae where the highest yields of oil can only be obtained from starving cultures.

nr_umen_plantcell_final_10_18-imagecaptionUmen and his team found the oil-accumulating mutation in Chlamydomonas, called vip1-1, while investigating how two conserved signaling systems interact with one another. One system involves a protein called TOR (target of rapamycin) whose activity is tuned to match cell growth rate with nutrient levels in the environment. The other system involves a family of proteins called VIP that produce highly phosphosphorylated small molecules called inositol polyphosphates that are thought to act as intracellular signals, but whose function in algae is not well-defined. The team found that when VIP activity was reduced by the vip1-1 mutation, cell growth became extremely sensitized to changes in TOR activity; but unexpectedly, this sensitivity was dependent on the sources of carbon nutrients that cells had available. When TOR-inhibited vip1-1 cells were given light for photosynthesis and supplemented with acetate—a “free” source of extra carbon—their growth was completely arrested. However, the vip1-1 mutation had no impact on TOR-inhibited cell growth when acetate was removed and atmospheric CO2 was the only carbon source.

The connection between acetate and the growth behavior of vip1-1 cells led Umen and his team to investigate the mutant further to see if it had other metabolic alterations that could be detected without perturbing TOR signaling. Remarkably, they found that actively growing vip1 cells were oil overaccumulators that made extra storage oil compared to normal cells, and did so without incurring a significant growth penalty. Moreover, under starvation conditions when normal cells boost their oil content significantly, vip1-1 cells increased it even more with up to double the yields seen in normal cells.

“Our study reveals a new way to understand how cells control carbon metabolism and storage,” said Inmaculada Couso, Ph.D., post-doctoral researcher, Institute of Plant Biochemistry and Photosynthesis. “As we decipher the inositol polyphosphate signaling code, we open up the prospect of being able to reprogram metabolism and make algae better producers of oil or other high value carbon-rich compounds.

The findings were published September 6, in a paper titled, “Synergism between inositol polyphosphates and TOR kinase signaling in nutrient sensing, growth control and lipid metabolism in Chlamydomonas,” in The Plant Cell.

advanced biofuels, algae, Research