Record #Corn and #Ethanol Production Forecast

Cindy Zimmerman August 15, 2016

USDA’s first crop production forecast based on actual field data is predicting a bin-busting corn crop this year while ethanol production is also on pace to be record high.

Corn production is forecast at a record 15.2 billion bushels, up 11 percent from last year with yields expected to average 175.1 bushels per acre, up 6.7 bushels from 2015. If realized, this will be the highest yield and production on record for the United States. Meanwhile, the U.S. ethanol industry is on pace to break production records this year, according to Department of Energy (DOE) projections released Tuesday. DOE projects 2016 ethanol production will average 980,000 barrels per day, or 15.1 billion gallons.

“This is shaping up to be an historic year,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. “Just a decade ago, visionary leaders in the corn and ethanol industries established a goal to produce 15 billion bushels of corn and 15 billion gallons of ethanol by 2015. Ten years later, our nation’s farmers and ethanol producers have made that bold vision into a reality.”

The August World Agriculture Supply and Demand Estimates Report, also released Friday showing corn ending stocks for the 2016/17 marketing year are expected to be the highest in 29 years at 2.4 billion bushels while corn prices are expected to average just $3.15 per bushel, the lowest in 10 years. National Corn Growers Association president Chip Bowling says these numbers should “be a wake-up call for both Presidential campaigns regarding the economic challenges facing farmers and rural America….We need real solutions that help us access markets, expand biofuel use, and ensure a more sustainable future.”

Both Dinneen and Bowling note that the record production numbers and low prices underscore the importance of continuing to implement the Renewable Fuel Standard (RFS) as intended by Congress while EPA’s proposal would reduce the 2017 RFS requirement for “renewable fuel” from 15.0 billion gallons to 14.8 billion gallons. “This is not the time to undermine demand for corn and tie the hands of the American farmer. Farmers and ethanol producers made investments and business decisions based on the 2007 law that expanded the RFS, and they expected EPA to follow Congress’ intent in implementing the program,” Dinneen said. “EPA’s proposal is limiting market opportunities for U.S. farmers at a time when the agricultural economy needs a boost.”

corn, Ethanol, Ethanol News, NCGA, RFA, RFS, USDA

#Ethanol Report from 2016 Sturgis

Cindy Zimmerman August 12, 2016

The Renewable Fuels Association (RFA) once again partnered with the Buffalo Chip Campground to host the 76th annual Sturgis Motorcycle Rally, Aug. 8–14 in Sturgis, South Dakota. RFA Vice President of Industry Relations Robert White was joined at this year’s event by association board members Dana Siefkes-Lewis of Redfield Energy in South Dakota and Chuck Woodside of KAAPA Ethanol in Nebraska. In this Ethanol Report, they all talk about the importance of educating motorcyclists about using ethanol in their engines.

Listen to the Ethanol Report: Ethanol Report from 2016 Sturgis

RFA at 2016 Sturgis Motorcycle Rally Photo Album

Audio, Ethanol, Ethanol News, Ethanol Report, Motorcycle, RFA, Sturgis

Bobby Likis Features Robert White Live From Sturgis

Joanna Schroeder August 12, 2016

On left, RFA’s Robert White, a motorcyclist veteran, shares ethanol’s story with a biker during the 76th annual Sturgis Motorcycle Rally.

It’s been a great week for the 76th annual Sturgis Motorcycle Rally and once again biker enthusiasts embraced E10 with free fuel (10 percent ethanol and 90 percent gas) and raved about their performance. Speaking of motorcycles, Renewable Fuels Association (RFA) veteran motorcyclist and expert Robert White was at Sturgis once again. While there White will be a live guest on Bobby Likis Car Clinic, Saturday, August 13, 2016 beginning at 10:25 am ET / 8:25 am MT.

Said Likis, “Sturgis Rally is on my bucket list! Robert will be our eyes and ears there on Saturday, as we talk fun, motors and E10.”

During the show White will bring news of the Rally to Car Clinic listeners and viewers, including a recap of the RFA’s sponsored 9th annual Legends Ride where riders glide from Deadwood through the scenic Black Hills to the gates of the Sturgis Buffalo Chip. White will also spotlight a most popular “happy hour” for riders: Free Fuel Happy Hour, where, compliments of RFA, bikers gas up with a free tank of 93 octane E10 for their rides. And wow do the bikers line up for E10!

“I’ve been going to the Sturgis Motorcycle Rally for the past eight years and it’s a great event to educate the motorcycle community on the benefits of ethanol,” said White. “E10 is a safe and reliable fuel blend and is covered under warranty by every major motorcycle manufacturer in the market. I look forward to this year’s event, to teaching riders about the advantages of ethanol blended fuel, and to sharing Sturgis news with Bobby’s listeners and viewers.”

White is not only a motorcyclist veteran, he is also a veteran of the U.S. Army and an official member of the Veterans of Foreign Wars and the American Legion. To view White’s interview in its entirety, visit WatchBobbyLive.com on Saturday, August 13, 10:25a ET / 8:25a MT.

biofuels, Education, Ethanol, Ethanol News, Motorcycle, RFA, Sturgis

Jennings Offers #ACE16 Highlights, #Ethanol Next Steps

Joanna Schroeder August 12, 2016

It came as no surprise that the 29th annual ACE Ethanol Conference was a huge hit with attendees this week. One comment that was often heard was how great the content was. Attendees were also pumped-up about the efforts of American Coalition for Ethanol (ACE) to help get E15 at pumps across the country. After the conference concluded, I was able to sit down with ACE Executive Vice President Brian Jennings to get his take on this year’s event.

I first asked him what he thought some of the highlights were this week. He said one, in his view, was the re-commitment that the Renewable Fuel Standard (RFS) is important, but that the industry needs to continue to build momentum for other ways to increase the use of ethanol. Some of these ways include exports and increasing octane. “I think there was a greater appreciation for the hurdles we’re going to have to clear if we’re going to actually use octane to drive demand,” said Jennings.

Out of the octane discussion, Jennings said there were some areas that were brought to light about where the industry needs to be more involved. One area is the industry needs to be more involved with ATSM.

(Left to right) Merle Anderson shares his thoughts on his namesake award while ACE’s Brian Jennings looks on.

Jennings said he was very gratified about the Merle Anderson award, and the fact that Merle Anderson, at 85 years old, was able to come back to the ACE Conference. This year’s award was given to Lars Herseth who for many years has served on the ACE board. Jennings said the awards really highlight how great some of the people are in the industry.

So what’s on the horizon for ACE? Jennings said another big ad buy in Washington, D.C. is in the works to promote the Reid Vapor Pressure fix required to offer E15 across the country year round. Jennings said they are really going to need to get down in the weeds on the CAFE greenhouse gas rule making. “EPA doesn’t want this to be a pathway for higher octane fuels but the auto makers have an interest in enabling ethanol to be pathway for high octane fuels as do we,” he noted. In addition, ACE will continue to work with retailers to help them understand the math of E15 and flex fuels.

In closing, Jennings thanked his six staff members for their team effort as well as thanked the volunteer members who helped, which he said is really heartwarming. “They make me really proud,” he added.

Learn more about Brian’s thoughts on this year’s ACE Ethanol Conference here: Interview with Brian Jennings, ACE

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, Ethanol

#ACE2016 – Mo’ #E15 Gallons Please

Joanna Schroeder August 12, 2016

Consumers and retailers are calling for “Mo’ Gallons” said Ron Lamberty, VP of Market Development during the opening session of the American Coalition for Ethanol’s 29th annual Ethanol Conference. During his opening remarks he focused on the need and movement to get more E15 and higher blend pumps across the country. The theme of his presentation was “Do the Math.” Why? Because when you do the math, you will see that offering consumers more choice in the form of E15, mid-level ethanol blends and ethanol blends such as E85, “they will come” and retailers will have a financial economic advantage over their competitors.

ACE’s market development efforts have always focused on expanding existing markets. When they go out and meet with marketers about expanding ethanol blend offerings, Lamberty said they tell them to do the math – Why this is a good deal for a marketer? i.e. How you can make more money with ethanol? Back in 2008-2009 ACE partnered with the Renewable Fuels Association to launch the BYO campaign -Blend Your Own Ethanol. With programs such as this, Lamberty said the industry has been ahead of the Renewable Fuel Standard (RFS) in terms of expanding ethanol’s market.

Going forward, Lamberty said they have realized that the retailer is the customer, not the consumer, so they have been focusing their efforts on retailers. Last year they launched the Flex Fuel Forward site. Here retailers can learn more about the value proposition of ethanol. In addition, in an effort to do a better job of showing how to do the math, ACE launched an animation last year and during this year’s conference, unveiled their new publication, E15 and Flex Fuel Retailer Roadmap.

Lamberty thanked the ethanol industry along with retailers for all they have done in this arena and concluded, “I ask you to remember when you talk to marketers do the math, help them do the math, and if they don’t know the math, call me, I like to teach math at least at this level.”

Listen to Ron Lamberty’s presentation here: Ron Lamberty, ACE, Opening Remarks

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, E15, E85, Ethanol, Retailers

Cattle Producer Talks DDGs at #ACE2016

Lizzy Schultz August 12, 2016

The growth of the ethanol industry and the use of dried distillers grains (DDGs), a co-product of ethanol production, as livestock feed have both harnessed significant controversy and skepticism from livestock producers through the years, and the use of distillers grains as livestock feed was a major topic of discussion at this year’s American Coalition for Ethanol (ACE) Conference, held this week in Minneapolis.

Al Giese, Co-Owner & Manager of Prarie Feed & Trucking (PFT), has worked as an agronomist, an animal nutrition expert, and is a cattle producer himself. Gives uses DDGs in his cattle’s rations, and he sat down to speak with AgWired’s Joanna Schroeder during the 2016 ACE Conference to discuss the benefits he has found through their use.

“In the early phases of the ethanol industry, there was a lot of confusion among livestock producers who felt that the ethanol industry was driving up their feed prices by increasing the price of corn, the value of ethanol co-products in the animal ration was not clearly understood,” said Giese in an interview during the 2016 ACE Conferece. “But now we’ve found that the ethanol industry is not dramatically affecting the price of corn at this point, given where the prices are right now, and now virtually every ration in a feedlot in dairies and ranches includes a dry distillers grain.”

Giese explained that the distillers grains offer a type of nutritional and economic efficiency that simply cannot be found in whole corn products.

“Distillers grains from ethanol allows the animal producer to achieve their least cost ration and optimum animal performance, which increases their profitability,” he said. “The reason this has worked to the benefit of the livestock producer is because the nutrient value of DDGs, pound for pound, is greater than corn. It’s the protein we’re after, we want to achieve the maximum protein level at minimum cost. I have not seen a ration in years where you could not least cost the ration because of the product’s nutritional value, primarily related to protein.”

Listen to Joanna’s full interview with Al here:
Interview with Al Giese, Prairie Feed & Trucking

View and download photos from the event here: 2016 ACE Ethanol Conference Photo Album

ACE Ethanol Conference, Ag group, Audio, Distillers Grains, livestock feed

Sen Ernst & IA Gov Branstad to Visit Quad County

Joanna Schroeder August 12, 2016

Quad County Corn Processors will be hosting two special guests on Wednesday, August 31, 2016 – U.S. Senator Joni Ernst (R-IA) and Iowa Governor Terry Branstad. The two are set to arrive at the ethanol biorefinery at 9:15 am CT.

Senator Ernst and Governor Branstad will tour Quad County’s state-of-the-art Cellerate process technology production facility and then meet with Quad County staff and board members to discuss cellulosic ethanol issues. Two specific items on the agenda include: the need to get high compression engines manufactured by auto companies to increase the ethanol market to be large enough to need cellulosic ethanol; and the need for an RVP waiver for E15.

Also in attendance will be Jack Bernens, Head of Enogen at Syngenta; Ponsi Trivisvavet, President of Syngenta Seeds, LLC; Jeff Sands, Manager, Federal Government Relations at Syngenta; and Monte Shaw, Executive Director, Iowa Renewable Fuels Association.

biofuels, Cellulosic, corn, Ethanol

RFA Hosting Safety Seminars in Delaware & NJ

Joanna Schroeder August 12, 2016

Next week the Renewable Fuels Association (RFA) is hosting four free ethanol safety seminars in Deleware and New Jersey. The Delaware seminars will be held on Aug. 16, 2016 in Wilmington, with the first session from 9:00 am –2:00 pm ET and the second from 5:30 pm –10 pm ET. Both events will be held at the Wilmington Emergency Operation Center. These seminars are held with grants from the International Association of Fire Chiefs and the Pipeline and Hazardous Materials Safety Administration.

There will also be two ethanol safety seminars in Mahwah, New Jersey, on Aug. 18, 2016 The first session will be held from 9:00 am –2:00 pm ET and the second session will be held from 5:30 pm –10 pm ET. Both events will be held at the Bergen County Fire Academy.

Attendees will receive in-depth information on proper training techniques that emergency responders and hazmat personnel need to effectively respond to an ethanol-related emergency. Certificates of Completion will be handed out to all attendees at the end of each safety seminar. The seminars are free to attend and open to the public.

“Safety is our number one goal, and these ethanol seminars provide excellent training for first responders and others who wants to attend,” said Steve Kramer, interim fire coordinator at Western Tech in LaCrosse, Wisconsin. “As a previous ethanol safety seminar attendee, these events are well worth the time.”

The New Jersey seminars are being held through a grant with TRANSCAER and the Federal Railroad Administration, and in partnership with The New York, Susquehanna and Western Railway (NYSW). “Events like these are important as we educate emergency responders on proper training techniques,” said Melanie Boyer, spokeswoman for NYSW. “While rail accidents are rare, we want to make sure everyone is properly briefed.”

Click here to register.

Ethanol, Ethanol News, RFA, safety

U.S. Navy Completes Sea Trial with Renewable Diesel

Joanna Schroeder August 11, 2016

The Navy is advancing its commitment to renewable fuels. Recently a Navy ship operated on a 100 percent drop-in renewable diesel fuel produced by Applied Research Associates (ARA) and Chevron Lummus Global. The Naval Surface Warfare Center, Port Hueneme Division’s (NSWC PHD) Self Defense Test Ship (SDTS) completed final-phase testing of ReadiDiesel, a 100 percent renewable biofuel.

The ex-Paul F. Foster anchored off the southern coast of California. Paul F. Foster serves as the new Self Defense Test Ship for Naval Surface Warfare Center. (U.S. Navy photo by Mass Communication Specialist 2nd Class Timothy M. Black/Released)

One objective of the test was to demonstrate that ReadiDiesel is a drop-in replacement for petroleum-sourced F-76 marine diesel, meaning that it requires no blending with petroleum-derived fuels, equipment modifications or operational modifications by the crew. The second objective was to ensure that ReadiDiesel performs equally to, or better than, existing petroleum-derived fuels.

The SDTS took on approximately 18,000 gallons of the renewable fuel in San Diego, California, and the renewable diesel fuel powered the Self Defense Test Ship’s General Electric LM-2500 gas-turbine engine and a Rolls Royce 501 K-17 gas-turbine generator.

“We are excited to work with the U.S. Navy as it takes this important step toward the use of 100 percent drop-in renewable diesel fuel in its ships,” said Chuck Red, vice president of fuels development for ARA. “Our renewable fuels continue to prove their viability as a 100 percent replacement for petroleum in diesel and jet fuel applications, and we look forward to the opportunity to work with our Navy partners to support their operational needs. Our goal remains to be able to provide an alternative, unblended renewable fuel that increases our nation’s energy security at prices competitive with petroleum.”

According to ARA, the test lasted nearly 12 hours while the ship traveled along the Southern California Coast to Port Hueneme. Navy engineers monitored the performance of the gas-turbine engines and generators while running on petroleum F-76 prior to taking on the ReadiDiesel to establish a baseline for comparison. While operating on the renewable diesel, the ship successfully completed multiple engine starts and speed changes. There were no mechanical, operational or qualitative differences.

The data collected from the trial will be fully analyzed and the results summarized in a final report. Prior to testing aboard the SDTS, ReadiDiesel went through fit-for-purpose, component, and full-scale engine testing. The component and full-scale engine testing included performance tests to determine the combustion quality and emissions. In all, ARA provided 79,000 gallons of ReadiDiesel for the test program.

advanced biofuels, aviation biofuels, military, renewable diesel

Retailers Share Success Stories at #ACE2016

Joanna Schroeder August 11, 2016

Several retail chains have been leading the way in bringing E15 and E85 to consumers. One of these chains, based in the Northeast, is Sheetz. While some retailers are focusing on E15, others are focusing on E85 such as Pearson Fuels. Representatives from both of these chains took the stage this week during the 29th annual ACE Ethanol Conference for the panel discussion, “Progress at the Pump: A Conversation with Leading Retailers on E15 and Flex Fuels.”

Mike Lorenz is the executive vice president, petroleum supply, for Sheetz, based in Pennsylvania. The company is the largest single retailer of E15 in the country and unveiled their first E15 pump in North Carolina in August of 2015. Bob Sheetz founded the company in 1952 and since then has grown into a leading retail chain operating today in six states.

Lorenz noted that the ethanol industry has a sense of family unlike oil which has a “dark side”. He also noted that the market needs pull from consumers and he believes this can be in the form of E15. However, one issue will need to be resolved for the fuel to really take off, he said, and that is to change regulations to allow E15 to be sold year round.

Listen to Mike Lorenz’s comments here: Mike Lorenz, Sheetz, Presentation

Also on the docket was Mike Lewis, general manager of Pearson Fuels, based in San Diego, California. His company was on the forefront of offering E85 to Southern California drivers. To date, his company has developed 19 stations from different brands to sell E85 including their own Pearson Fuels Branded retail station. The retailer has plans to add another 15 additional sites. In addition, Pearson Fuels also has a fuel depot where they sell ethanol.

One program that enabled the company to ramp up E85 pumps was the Prime the Pump program. The program was a primary factor, said Lewis, that convinced them to add E85. The program assists retailers with the costs to add flex fuel pumps to their station, an often barrier for many retailers. The company also received funds from the state to help with infrastructure costs. Another barrier on the consumer side is price so Lewis said the fuel has to be priced right for consumers to make the E85 choice at the pump. He also noted that due to state regulations, E15 can’t be sold in California. As a result, to overcome the so-call blend wall will be blends such as E85.

Listen to Mike Lewis’s comments here: Mike Lewis, Pearson Fuels, Presentation

There was a great discussion with the retailers following their presentations and you can listen to it here: Progress at the Pump Panel Discussion

2016 ACE Annual Ethanol Conference Photo Album

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

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