MN Rep Tim Walz Visits Al-Corn Clean Fuel

Joanna Schroeder

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

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.

Al-corn clean Fuels-2

(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

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.

growth-energy-logo1“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.”

US Grains Council logoTom 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.”

rfalogo1Bob 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

  • BioEnergyBytesDF1St1 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

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.

ace-16-sovereignSovereign 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

ICM_2-color_logoVRTAbengoa 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

#Ethanol Groups Disappointed in European Appeal on Duties

Cindy Zimmerman

rfalogo1The Renewable Fuels Association (RFA) and Growth Energy are disappointed with today’s decision by the European Commission (EC) to file an appeal with the EU General Court related to its ruling two months ago invalidating certain ethanol duties.

The EC had approximately two months from the June 9 court ruling to appeal. That ruling annulled the European Union’s 9.5 percent antidumping duty on ethanol imported from the United States produced by entities that had been selected as part of a sample group in an antidumping investigation. During the appeal process, the duty which has been in place since February 2013 will remain on ethanol generated by these producers and all other American ethanol entering the European Union.

“While not surprising, we are disappointed with EC’s decision,” said Renewable Fuels Association President and CEO Bob Dinneen. “The antidumping duty should have never been assessed and is only hurting European consumers by shutting out the lowest-cost ethanol in the world. We will continue to fight to ensure the duty is removed.”

growth-energy-logo1Emily Skor, CEO of Growth Energy added, “The ongoing resistance of the EC is frustrating. Their willingness to continue to pursue an unprecedented, protectionist agenda will only delay the inevitable outcome, absolving U.S. ethanol producers from any false claims of anti-dumping. We will continue to pursue all options to fight this unfounded complaint, and are confident we will be vindicated.”

Growth Energy and RFA filed a joint complaint in May 2013 outlining violations by the European Commission claiming that it effectively shut out U.S. ethanol producers from accessing the European market.

Ethanol, Ethanol News, Exports, Growth Energy, RFA

Enerkem Biomethanol Receives ISCC Certification

Joanna Schroeder

Enerkem’s facility in Edmonton becomes the first ISCC certified plant in the world to convert municipal solid waste into biomethanol. Photo: CNW Group/ENERKEM INC.

Enerkem’s facility in Edmonton becomes the first ISCC certified plant in the world to convert municipal solid waste into biomethanol. Photo: CNW Group/ENERKEM INC.

Canadian waste-to-bioproducts producer Enerkem has announced that it has received certification from the International Sustainability and Carbon Certification (ISCC) system for biomethanol production from its biorefinery Alberta Biofuels located in Edmonton, Canada. According to the company, this facility is the first ISCC certified plant in the world to convert municipal solid waste in biomethanol.

This reputable third-party certification confirms that Enerkem meets high ecological and social sustainability requirements. Enerkem already sells its biomethanol as a renewable chemical in North America and, with the ISCC certification, we are now adding flexibility to export it as a biofuel in Europe,” said Tim Cesarek, senior vice president of business development. “With the addition of a biomethanol-to-ethanol conversion module in the second half of 2016, this biorefinery will also become the first to sell multiple renewable fuel and chemical products made from waste.

Biofuels used in Europe, such as biomethanol and ethanol, must prove, through third-party certification under an approved certification scheme such as ISCC EU, that they comply with stringent criteria in terms of greenhouse gas savings, sustainability and traceability of the entire supply chain and are compliant with the European Renewable Energy Directive. Under the RED, all EU countries must ensure that at least 10 percent of their transport fuels come from renewable sources by 2020. The RED also gives waste-based biofuels, such as Enerkem’s methanol and ethanol, the advantage to count double towards this 10 percent requirement.

advanced biofuels, bioproducts, Waste-to-Energy

Mark Your Calendar for the 2016 Energy Conference

Joanna Schroeder

Mark your calendar for the 2016 Energy Conference 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.”

2016 Energy Conference logoOn the docket are in-depth discussions about marketing and retailing of alternative fuels including biodiesel and ethanol.  These conversations will include information about existing fuel supply opportunities, alternative fuel choices and grant incentive programs available for new equipment and infrastructure. There will also be workshops on federal and state policies with perspectives from key players on what to expect in the next two years.

The 2016 program will include Iowa Lieutenant Governor Kim Reynolds; John Eichberger, executive director of The Fuels Institute; Larry Pearce, executive director of the Governors’ Wind and Solar Energy Coalition; Douglas S. Haugh, president of Mansfield Oil Co.; Jeremy Bezdek, vice president of biofuels and ingredients at Flint Hills Resources; Karyn Jones, chief operations officer of EcoEngineers; Jeff Hove, vice president of RINAlliance; and Zander Capozzola, editor of the Argus Americas Biofuels report; to name just a few.

According to conference host Dawn Carlson, president and CEO of the Petroleum Marketers and Convenience Stores of Iowa, the 2016 Energy Conference is about focusing attention on profitable operations and growth for today’s technology and tomorrow’s innovators.

Whether you are concerned about supply contract terms and conditions, which include RIN credit and IRS blender credit valuation, or you’re simply looking for competitive sources of alternative fuels, the 2016 Energy Conference will help you identify solutions,” Carlson said. “We were excited to secure sponsors like the RINAlliance, Renewable Energy Group, EcoEngineers, DuPont Pioneer, and NATSO, to name just a few. We also appreciate the strong support of BBI International and Fuel Marketer News for their interest in this national energy event.

Click here to register or to view the technical session agenda and list of speakers for the 2016 Energy Conference.

advanced biofuels, Alternative energy, Biodiesel, conferences, Ethanol

Group from Taiwan Learns About U.S. DDGs

Joanna Schroeder

Taiwan is the seventh largest U.S. ag export market and the sixth for corn so a trip to the U.S. to learn about corn and distillers dried grains with solubles (DDGs) was successful for a group of grain buyers from the country. The participants visited Indiana and Michigan and learned about production, application, grading and quality standards. In addition, the group headed home armed with the knowledge to better handle, procure and store corn and DDGs.

The trip was organized by the U.S. Grains Council who reported that in 2015, Taiwan imported 1.84 million metric tons of corn with 95 percent of the total used for animal feed in the swine and poultry sectors.

The U.S. Grains Council (USGC) office in Taiwan had consultant Jerry Shurson, a professor at the University of Minnesota, visit the country late last month to bolster their ongoing efforts to promote the use of low-oil U.S. distiller's dried grain with solubles (DDGS) in poultry rations.

The U.S. Grains Council (USGC) office in Taiwan had consultant Jerry Shurson, a professor at the University of Minnesota, visit the country late last month to bolster their ongoing efforts to promote the use of low-oil U.S. distiller’s dried grain with solubles (DDGS) in poultry rations.

“DDGS use is growing in Taiwan. Currently, the inclusion rate is low, and we’re trying to encourage producers to increase that percentage to create better quality feed,” said Clover Chang, Taiwan office director at the U.S. Grains Council, the sponsor of this week’s team travel.

In order to facilitate this process and encourage confidence in U.S. corn and DDGS purchases, the group took part in several learning and information sharing opportunities. The trip began in Indiana, where the team visited Purdue University to learn about soil and crop management techniques as well as performance evaluation for corn and soybeans. This included a look into technological and industry standards geared towards quality, an important factor in buying decisions. In addition, the group visited the Indiana Corn and Soybean Innovation and Phenotyping Center to supplement this knowledge and see research in crop productivity in action, and a transportation facility to see the logistic involved in grain shipping.

When in Michigan, the group visited a poultry farm and feed mill operations, and an ethanol plant where DDGs are produced. Chang noted that while Taiwan is still in the early stages of ethanol research, the visit gave attendees the opportunity to see how ethanol could be used in the future. He added that the trip also enabled the participants to learn how technology is being applied across agriculture to improve quality and efficiency.

Chang concluded, “The Council continues to work to find ways to promote ethanol in Taiwan. This was a great opportunity for stakeholders to see how valuable it can be.

corn, Distillers Grains, Ethanol, Exports, USGC

Green Plains Opens #Ethanol Plant in Virginia

Cindy Zimmerman

Green Plains Inc. hosted a ribbon cutting and open house event at its new Hopewell, Virginia ethanol production facility which the company acquired in October 2015.

NCGA president Chip Bowling (left center) at Green Plains Virginia ethanol plant

NCGA president Chip Bowling (left center) at Green Plains Virginia ethanol plant

Among those in attendance at the celebration was National Corn Growers Association (NCGA) President Chip Bowling who farms corn, soybeans, and sorghum just 100 miles away in Newburg, Maryland.

“We are excited to see ethanol production back up and running in Virginia,” said Bowling. “The Hopewell plant will give Mid-Atlantic farmers another market for their crop. It’s good for the ag economy, and for consumers, who will now have access to renewable fuels grown and produced even closer to home. This is win-win.”

The Hopewell ethanol facility, which opened in April 2014, was the first ethanol operation on the East Coast, producing ethanol from corn, barley, and other small grains. The facility stopped production in August 2015 and was bought by Nebraska-based Green Plains in October. Green Plains also announced this week that it was the successful bidder on three ethanol plants for sale by Abengoa Bioenergy conducted under the provisions of the U.S. Bankruptcy Code. The company will purchase the Madison, Ill., Mount Vernon, Ind. and York, Neb. ethanol facilities, with combined annual production capacity of 236 million gallons per year, for approximately $237 million in cash.

“We continue to focus on making strategic investments in high quality assets as we expand our production footprint,” said Todd Becker, president and chief executive officer at Green Plains. “The Madison and Mount Vernon plants will give us access to the Mississippi River, supporting our new export terminal planned in Beaumont, Texas. In addition, we will broaden our product offering globally with industrial alcohol production at the York plant. These acquisitions further our commitment to deliver long-term value for both Green Plains Inc. and Green Plains Partners shareholders.”

Upon completion of the acquisitions, Green Plains will own and operate 17 dry mill ethanol facilities with combined production capacity of nearly 1.5 billion gallons per year.

Ethanol, Ethanol News, NCGA, Production