Jennings #ACE2016: Passion for Promoting Ethanol Contagious

Joanna Schroeder

American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings began his opening remarks to a standing room only crowd at this year’s 29th annual Ethanol Conference. The excitement was high. Why? Because as Jennings put so succinctly, his passion for promoting ethanol is contagious. And indeed it is.

ACE16-JenningsJennings stressed that when everyone works together, the industry is stronger, something ACE founder Merle Anderson understood when he led the effort to form ACE back in 1987. “He understood what the ‘politics of addition’ mean, and why we needed a grassroots voice in support of ethanol.”

ACE has the strongest grassroots voice in the country and their Power to People campaign is a great example of how in touch ACE is with the consumers who purchase the industry’s homegrown products.

That’s what ACE’s Power by People campaign is about – putting a human face on ethanol – making connections with people on their terms; appealing to people’s hearts in addition to their minds,” said Jennings who added that people don’t make decisions on facts and data alone, but emotion and feelings play a huge role. “And it goes beyond having a message that’s persuasive to both the left and right side of the brain. If we want to influence the public opinions that inform political decisions, we also need to think about our audience and have the right messenger deliver the right message.”

Jennings also highlighted the big need to fix the RVP problem, nationally, that keeps E15 from being sold during summer months. He said this must be overcome if the industry is to pave the way for even higher blends. He also stressed the need to keep the Renewable Fuel Standard (RFS) on track so RIN values will continue driving demands for flex fuels. Yesterday was the 11th Anniversary of the RFS being signed into law and noted that ACE was the first organization to support the RFS and ACE’s President of the Board at the time, Bob Scott, was invited by the White House to take part in the signing.

Another topic Jennings discussed was ethanol’s octane value as a leading demand driver in the future. He cited the growing number of technical studies demonstrating that a high-octane fuel with upwards of 20-30 percent ethanol improve fuel efficiency and reduces carbon emissions in advanced engine technologies.

In closing, Jennings reminded attendees that the November election is only a few short months away. While he didn’t touch on the Presidential campaign, he did stress: “As candidates stump for your vote, whether Donald Trump and Hillary Clinton or Ron Johnson and Russ Feingold, or whoever, please hold them accountable on our priorities.

Listen to Brian’s full opening presentation here: Brian Jennings, ACE, Opening Presentation

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, biofuels, E15, Ethanol, RFS, RINS

Opis’ Kloza #ACE2016: The Rise & Fall of Oil

Joanna Schroeder

When record high oil prices plagued the globe, many thought $100 per barrel was going to be the new norm. But this wasn’t the case when in February 11, 2016 a barrel of oil was trading for only $26.05 per barrel. What happened? To learn more about the rise and fall of oil, Tom Kloza, global head of energy analytics with the Oil Price Information Services (OPIS), took the stage at the 29th annual ACE Ethanol Conference to give attendees a lesson in oil prices.

ACE16-Kloza Kloza joked that there really aren’t such things as global energy price experts. He said he a fuel agnostic but the mainstream media has a very biased view on oil.

One interesting fact during Kloza’s presentation was that the first time the globe saw $40 per barrel prices was in October 1990 (Desert Storm) and then oil dropped to $9.75 per barrel before rising back to $40 per barrel in May 2004. This morning, oil is trading around $42 and the market is telling us, said Kloza, is that oil will be around $44-$46 per barrel for the next 17-18 months.

So what does this mean for corn ethanol? Kloza said oil prices are too low and its not sustainable so prices will head back up to as high as $75 dollars sooner than later, somewhere around 2018-2020, said Kloza. Some of his other predictions included that corn ethanol will “pop” if there is the right drought conditions. E15 is a no-brainer, especially after September 15th when EPA allows stations to sell E15 again. E15 is selling at an average of 5-8 cents less than traditional octane and this is a great rehearsal for higher ethanol blends especially over the next six months. There is an octane race and he sees ethanol as the winner.

Kloza also said that the retailer market is seeing differentiated gas and battle lines are being drawn. Especially for independent retailers, they are using ethanol blends to their advantage.

Learn more about the future of oil prices by listening to Tom Kloza’s presentation:
Tom Kloza, OPIS, #ACE16 Presentation

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, Ethanol, Oil

#ACE2016 Hears about Booming Minnesota #Ethanol Industry

Joanna Schroeder

ACE16-RudnickiThe ethanol industry packed the room for the opening night reception of the 20th annual American Coalition for Ethanol (ACE) Conference in Minneapolis, Minnesota where Minnesota Bio-Fuels Association Executive Director Timothy Rudnicki talked about the booming ethanol industry in his state.

“Within the last year and a half, we’ve seen more E15 stations become available, and that means more fuel choice for consumers,” said Rudnicki. “What we’ve found for the most part is when consumers have a choice between a clean, green renewable fuel versus petroleum they will take the renewable fuel.”

Rudnicki says because education is so important, they have developed new communications tools, such as a biofuel station locator app. “We’ve also implemented some direct consumer campaigns using social media tools to alert consumers to where retailers are having special events to promote E15 and higher blends, but more importantly, to give consumers the confidence in knowing what they’re buying is good for their engines, the environment, and the economy – and for the most part, ten cents less per gallon on E15 compared to regular,” said Rudnicki.

In this interview, Rudnicki also talks about Minnesota’s tremendous ethanol production: Interview with Timothy Rudnicki, MN Bio-Fuels

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, Audio, biofuels, Ethanol, RFS

AST Awarded Biomass Extraction Patent

Joanna Schroeder

American Science and Technology (AST) has been awarded a patent for the system and method the company developed for the extraction of chemicals from lignocellulosic biomass. The company says their system reduces the costs of Organosolv processing and helps to make biochemicals from biomass more economically viable.

AST logoLed by Dr. Ali Manesh and group of researchers and engineers at AST, the team created a new organic solvent cocktail along with a new process that drastically reduces both the cost of solvent usage and solvent recovery to increase the economics of their Organosolv pulping process. The team both designed and built the required equipment as well as tested the process.

AST’s process not only has reduced the cost of solvent recovery, but also produces extra organic solvent that can generate a new income stream, allowing the Organosolv pulping process to be profitable.

According to AST, its Organosolv process fractionates lignocellulosic biomass to produce pure lignin, biochemicals, and high quality pulp. The patented process delignifies the lignocellulosic biomass by dissolving lignin into organic solvent, converting most of the hemicellulose to biochemicals (such as furfural, butyl acetate, etc.), and producing high quality pulp. AST’s Organosolv-based pulp has been successfully tested for paper production as well as for high quality cellulosic sugar production. AST’s lignin, with a very high purity, has been used for various applications such as biorenewable polymers, biorenewable colorant for polymers, and as a base for composite materials.

advanced biofuels, biochemicals, biomass, biomaterials

California Reps Urge Congress to Fulfill #RFS Intent

Joanna Schroeder

On the day the Renewable Fuel Standard (RFS) celebrated its 11th anniversary – August 8, 2005 – California Representative Eric Swalwell (CA-15) along with five of his California colleagues, submitted a letter to the Environmental Protection Agency (EPA) urging the agency to fulfill Congress’ intent when it passed the energy policy. Each year, the amount of renewable fuels blended into the country’s fuel supply is to increase. However, the EPA has not set volumes that meet statuary requirements even though the biofuel industry can meet, and in some cases exceed, demand.

ES Official Photo 114th_1The RFS was created to reduce our dependence on foreign oil and provide U.S. consumers with access to cleaner transportation fuels. Despite the recent increase in domestic oil production, the U.S. economy remains heavily dependent on foreign oil and at the mercy of international market prices,” the lawmakers wrote to EPA Administrator Gina McCarthy.

Billions of dollars in private investment have made America a leader in homegrown, clean biofuels. California alone is home to dozens of companies working on approaches from algae and biodiesel-based products to municipal solid waste, supporting nearly 60,000 jobs. However, EPA’s proposed rule for 2017 falls short of total renewable fuel volumes set in the law by Congress.

“Under this methodology, which Congress previously rejected, EPA allows the oil industry to avoid its statutory blending obligation by claiming there is inadequate infrastructure to bring more biofuels to consumers,” the lawmakers wrote. “Yet due to the fact that the oil industry controls the fuel distribution infrastructure, the EPA is essentially allowing the oil industry to cap the RFS and limit future growth in the biofuels sector.”

Increased fuel demand and greater availability of higher ethanol blends is more than enough justification for the EPA to increase volumes for 2017 and get the RFS back on track, they concluded.

“California and the nation have made great strides in protecting the environment, improving air quality, meeting fuel demand and creating jobs through use of biofuels under renewable fuel standards,” Swalwell said. “The EPA must follow Congress’ intent and keep up the pressure on the oil industry to provide the infrastructure needed to deliver these cleaner fuels.

Emily Skor, Growth Energy CEO, made the following statement following the submission of the letter, “The letter explicitly urges EPA to put the RFS program back on track by finalizing blending targets that are in line with Congress’ original intent. The RFS program has been a resounding success. EPA’s methodology, as it currently stands will let the obligated parties off the hook, decreasing the commercial availability of higher blends, such as E15. By returning to the statutory levels, the administration would will send a signal to the renewable fuels industry that they are committed to achieving the goals of carbon reduction, a free and fair fuel marketplace where consumers have a choice, and reaffirm their commitment to reduce our dangerous dependence on foreign oil.” Click here to read Skor’s full letter.

biofuels, EPA, Ethanol, RFS

#ACE2016 Board of Directors Elected

Joanna Schroeder

ACE logoThe 29th annual American Coalition for Ethanol (ACE) conference kicked off in Minneapolis, Minnesota today and one of the first items on the agenda was the election of its board of directors. Four board members were re-elected and three new representatives were appointed to the board.

Board members re-elected to serve three year term include:

  • Owen Jones, representing Full Circle Ag Cooperative
  • Duane Kristensen, representing Chief Ethanol Fuels
  • Dave Sovereign, representing Golden Grain Energy
  • Dale Tolifson, representing Minnesota Corn Growers Association

New board members elected to a three-year term include:

  • Scott McPhetters, representing KAAPA Ethanol
  • Rick Schwarck, representing Absolute Energy
  • Chris Studer, representing East River Electric Cooperative

Studer is replacing Scott Parsley who retired from East River Electric Cooperative in 2015. Click here to view the ACE’s full Board of Directors.

The ACE board of directors is a focused group of active volunteers who highlight the grassroots diversity of our entire membership,” said Brian Jennings, ACE Executive Vice President. “Our member interests are clearly represented by the passion, expertise, and experience the ACE board brings to the table and we are grateful for their support and leadership.”

2016 ACE Annual Ethanol Conference Photo Album

ACE, ACE Ethanol Conference, biofuels, Ethanol

Bikers Fueling up With E10 in Sturgis

Chuck Zimmerman

sturgis-16-1Bikers love ethanol blended fuel at the Legendary Buffalo Chip Campground. They also love free fuel! Thanks to the Renewable Fuels Association, Free Fuel Happy Hours are back at the Sturgis Motorcycle Rally.

This is not just a promotional effort, it’s an educational effort to help bikers and the general public learn and understand the facts about this renewable fuel source. Motorcycle manufacturers like Harley-Davidson, Indian, Victory, Triumph and more all have statements in their owner’s manuals that say fuel blended with up to 10 percent ethanol is approved.

Bikers like to know what other bikers have to say so I spoke to our first customer at today’s Free Fuel Happy Hours. He’s very happy running ethanol blended fuel in his bike.

Listen to his comments here: RFA Free Fuel Customer Interview

I will be collecting more interviews over the next couple days from here in Sturgis, SD and sharing photos as time allows. I hope you enjoy our coverage which is sponsored by the RFA.

Audio, biofuels, Ethanol, Ethanol News, RFA, Sturgis

Research Finds Sweet Potato Potential as Food, Fuel

Joanna Schroeder

Researchers from the University of Florida Institute of Food and Agricultural Sciences are looking at sweet potato vines as a source of biofuel feedstock and livestock feed. The vines are typically thrown out during harvest while the roots could serve as a source for biofuels. Post-doctoral researcher Wendy Mussoline said this could be a key finding for Florida’s ag industry and the biofuels industry at large. The research was published in the Journal of the Science of Food and Agriculture.

UF/IFAS researchers have found a sweet potato variety, CX1, that outperformed two table varieties in field tests. They think CX1 potatoes may serve well as feed for livestock and as biofuel.

UF/IFAS researchers have found a sweet potato variety, CX1, that outperformed two table varieties in field tests. They think CX1 potatoes may serve well as feed for livestock and as biofuel.

The agriculture industry in Florida is looking to find new, viable crops to replace the citrus groves that have been diminished by the greening disease,” Mussoline said. “Potato farmers are also trying to find new crops that offer both biofuel alternatives as well as food and/or animal feed opportunities. They are conducting field trials on several varieties of sweet potatoes to determine if they are an economically viable crop that they can market.

According to a newly published study by professor Ann Wilkie and Mussoline, an industrial sweet potato variety (CX-1) may do the trick. Today 99 percent of the ethanol produced in the U.S. comes from corn or sorghum, according to the study. But scientists and business interests are considering highly productive alternatives such as sweet potatoes for biofuel. Although China produces 81 percent of the world’s sweet potatoes, U.S. sweet potato production reached a record high of 3.2 billion pounds in 2014, according to the U.S. Department of Agriculture (USDA).

Wilkie and Mussoline found that CX-1 is a superior choice as a dual-purpose crop than the so-called “table” varieties – which people would normally eat — known as Beauregard and Hernandez. They determined this by putting the three varieties through multiple tests in the field and laboratory in Gainesville, Florida. The results found that the CX-1 roots have higher starch content and thus higher potential for fuel ethanol yields than the table varieties.

The study demonstrated CX-1’s value as animal feed and promotes the industrial sweet potato crop as a dual-purpose crop that could be used for both fuel ethanol — from the starchy roots — and nutritious animal feed — from the vines. Although the use of sweet potatoes in the U.S. would be new, it’s already being used as a feedstock in China and Brazil.

The sweet potato is a high-yielding crop suited to tropical and subtropical climates that requires minimal fertilization and irrigation, and the CX-1 industrial cultivar offers superior potential for feed and fuel,” concluded Wilkie.

advanced biofuels, Ethanol, Research

#Biofuel Microbes Knock Out Invaders

Joanna Schroeder

A new paper published in the journal Science, MIT and Cambridge researchers at the startup company Novogy, have developed a new technique to that gives biofuel producers fermentation microbes that have the upper hand against unwanted invaders eliminating the need for antibiotics and other sterilization methods.

57a35cd7a9d54The research was led by Gregory Stephanopoulos, the Willard Henry Dow Professor of Chemical Engineering and Biotechnology at MIT, and Joe Shaw, senior director of research and development at Novogy. They engineered microbes, such as Escherichia coli, with the ability to extract nitrogen and phosphorous – two nutrients needed for growth – from unconventional sources that could be added to the fermentation vessels.

Because the microbes only posses this advantage when they are fed these unconventional chemicals, there is little chance of them escaping and growing in an uncontrolled manner outside of the biofuel plant in a in a natural environment.

“We created microbes that can utilize some xenobiotic compounds that contain nitrogen, such as melamine,” Stephanopoulos said. Melamine is a xenobiotic, or artificial, chemical that contains 67 percent nitrogen by weight.

Conventional biofermentation refineries typically use ammonium to supply microbes with a source of nitrogen. But contaminating organisms, such as Lactobacilli, can also extract nitrogen from ammonium, allowing them to grow and compete with the producer microorganisms. In contrast, these organisms do not have the genetic pathways needed to utilize melamine as a nitrogen source, explained Stephanopoulos.

“They need that special pathway to be able to utilize melamine, and if they don’t have it they cannot incorporate nitrogen, so they cannot grow,” Stephanopoulos said.Read More

advanced biofuels, Cellulosic, Research

Happy 11th Birthday #RFS

Joanna Schroeder

Happy Birthday #RFS. Today is the 11th anniversary of the day the Renewable Fuel Standard (RFS) was signed into law. Ethanol advocates are celebrating the energy policy stressing that the legislation provides Americans with increasing energy security, cleaner air and more affordable fuel options at the pump. Biofuel advocates are noting that in nearly a decade, the RFS continues to drive U.S. job creation and new renewable energy innovations. Following are some of the industry leader’s thoughts on the success of the RFS.

rfalogo1Bob Dinneen, President and CEO of the Renewable Fuels Association:Passage of the 2005 Energy Policy Act could not have been possible were it not for the cooperation between the ethanol, agriculture and oil sectors. The oil industry needed an off ramp from the use of MTBE, which was polluting groundwater across the country, and the ethanol industry needed a growth path if farmers were ever to realize the promise of value-added markets. Every stakeholder cheered the passage of this groundbreaking legislation, and it was an immediate success. MTBE disappeared as a gasoline additive, investments in U.S. biofuel production soared, farmers saw increased demand for their commodities allowing Congress to dramatically cut farm program costs, consumers saw pump prices fall as ethanol displaced more expensive oil, and carbon emissions from the transportation sector fell precipitously. All of those benefits continue to this day.

Novozymes_logoAdam Monroe, President, Americas, Novozymes North America:Our government challenged the biofuels industry to produce the world’s cleanest, most affordable and sustainable fuel for cars and trucks. We delivered – and America continues to benefit. The RFS is a proven winner: it grows communities with hundreds of thousands of good-paying jobs; saves American drivers money and keeps billions of their dollars in the US versus going to the Middle East; and fights climate change by preventing millions of tons of carbon emissions from getting into our air. Let’s not roll back a winner; let’s let it work to its full potential. We urge the administration to maximize renewable fuel production.

growth-energy-logo1Emily Skor, CEO, Growth Energy:This is a good opportunity to remind the Environmental Protection Agency (EPA) that the RFS is designed to get stronger over time, delivering a greater share of renewable energy into our fuel mix. The agency has proposed cutting RFS targets for 2017, which would needlessly undermine eleven years of progress toward a cleaner environment and a healthier, more secure America. Ethanol producers, retailers and the current auto fleet are 100 percent capable of providing consumers with a true choice at the pump, and now is certainly not the time to roll back the clock. EPA must get the program back on track and deliver on the promise of new, more affordable options for consumers.

NCGA-Logo-3Chip Bowling, President of the National Corn Growers Association:The RFS guarantees America’s leadership in the global transition to ethanol, which has cut world-wide carbon emissions 589 million metric tons over the past decade, the equivalent of taking more than 124 million cars off of the road,” said  “And thanks to innovation in U.S. agriculture, we are growing more crops on less land than we cultivated when the RFS was first enacted.

advancedbiofuelsBrooke Coleman, Executive Director of the Advanced Biofuels Business Council:Simply put, the RFS is delivering on its promise. Almost every gallon of gasoline in the country now contains renewable fuel. Consumers are gaining access to new biofuel blends that reduce pump prices, increase octane, deliver better performance, and replace cancer-causing gasoline additives like benzene. With cellulosic biofuels — the lowest carbon motor fuel in the world — now coming online, the RFS is driving innovation like we have never seen before in the transportation fuel sector.

biofuels, Ethanol, Growth Energy, NCGA, Novozymes, RFA, RFS