#Brexit – Good or Bad for Agriculture?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Did/do you have a summer job on a farm?”

Growing up on a beef cow/calf operation in Southwest Missouri meant my summers were spent in the hay field or showing my Herefords at local, state and national livestock shows. I was thrilled to see such a diverse response to this week’s poll. No matter the type of farm work, it teaches young people what hard work and dedication is all about. Even though my farm work experiences were year round and sometimes I wasn’t a big fan, I wouldn’t trade lessons learned on the farm for the world.

Here are the poll results:

  • Yes, feeding cattle – 17%
  • Yes, hauling hay – 20%
  • Yes, on a dairy – 6%
  • Yes, building fence – 15%
  • Yes, in row crops – 20%
  • No – 20%
  • Other – 2%

Our new ZimmPoll is now live and asks the question, What does Brexit mean for ag?

The United Kingdom has voted themselves out of the European Union. Markets around the globe are down and it seems time will only tell the complete global impact. What does this mean for agriculture. With the value of the Euro in question, will this reduce agricultural trade and impact the agricultural economy?

ZimmPoll

.@Novozymes #FEW16 Message: Focus on Future

Joanna Schroeder

The Novozymes booth was a busy one during this year’s Fuel Ethanol Workshop (FEW) in part because not only is the company continually innovating with new product platforms, but because they have launched several new services for customers to assist them with improving optimization and profitability. Current market conditions was a hot topic at FEW and Novozymes has been focused on their customers during the current state, which according to Hans Klingenberg, global marketing director for the global biofuels business in North America, said is one of tight margins.

few-16-hansDuring FEW, Klingenberg said his company was focused on corn ethanol producers through discussions around their new product launches. He also supports the company’s strategy of how to build more value for their customers. They are doing this through innovation – identifying early what are the new things that they’re going to be developing internally to grow the industry.

So what is the current market doing? “That’s a really interesting question,” noted Klingenberg. “We really look at the industry as having reached the top of an S curve. So we have enjoyed and really grown up with the ethanol industry over the last years. We’ve come from a period where we all enjoyed tremendous growth and with that a really nice environment. As things have begun to peak, so this near-term period of plateau I would say, and you’re now seeing ethanol demand basically being outstripped by ethanol capacity. We’ve seen the industry tighten up and we’re really seeing that our customers are facing tougher margins as it becomes more tricky to figure out where you’re going to put all that ethanol that being produced.”

However, stressed Klingenberg, no matter the market conditions, there are always ways to advance, and this was their primary message to ethanol producers at FEW: focus on what’s ahead. “I’d say the plateau we’ve reached is really more like a train station and getting to the next stop. We see tremendous opportunities for ethanol producers to continue to develop their business and to grow both their top line and their profitability. And,” added Klingenberg, “we’re here to help them both in products and new services in helping them optimize their plants and increase their profitability.

Learn more by listening to Chuck’s interview with Hans Klingenberg here: Interview with Hans Klingenberg, Novozymes

You can find photos from the 2016 FEW here: 2016 FEW Photo Album

Coverage of the Fuel Ethanol Conference is sponsored by
Coverage of the Fuel Ethanol Conference is sponsored by Novozymes
Audio, corn, enzymes, Ethanol, FEW, Novozymes

DOE Calls for Bioeconomy Vision Input

Joanna Schroeder

Biomass Harvesting

Photo Credit: Joanna Schroeder

The U.S. Department of Energy (DOE) is calling for input to achieve its Bioeconomy vision set forth in its “Growing the Billion-ton Bioeconomy” report. The DOE is seeking ideas from industry, academia, research laboratories, government agencies and other stakeholders that would enable the country to meet the goals of the report. In particular, they are looking for input about specific aspects in the development of large-scale supply systems and technologies that will supply up to a billion dry tons of biomass feedstocks for multiple uses. The goal of this Request for Information (RFI) is to develop the components of processing and handling (unit operations) of biomass and demonstrate the viability of Advanced Feedstock Supply Systems (AFSS) on-scale in the future.

The RFI categories include:

  • Preprocessing technologies
  • Quality management
  • Strategies for mobilizing a billion tons of biomass resources

The DOE says existing feedstock supply systems are not adequate to reliably provide high-quality feedstock at the increasing volumes demanded over the next few decades; therefore, new logistics and processing technologies and systems are needed to address these challenges to support a growing biomass-derived industry and bioeconomy. DOE cites that adaptation of current systems and the development of new technologies and approaches are needed to overcome the barriers associated with the collection/harvest, storage, preprocessing, and transportation of increasing volumes of biomass annually. Higher biomass demands at greater quality require more innovative approaches to supply feedstock from across the U.S.

Click here to view the full RFI. Responses must be received no later than 5 p.m. Eastern Daylight Time on June 30, 2016.

advanced biofuels, bioenergy, biomass, biomaterials, bioproducts

BIOX Purchases Methes Energies #Biodiesel Plant

Joanna Schroeder

BIOX Corporation has announced the purchase of Methes Energies 50 million per year biodiesel facility located in Sombra Ontario for U.S. $4.5 million. BIOX says the facility has not achieved nameplate production due to working capital and market challenges and today is not in production. The company plans to invest C$5 million over the next 12 months on upgrades that will improve the biodiesel plant’s efficiency, and allow the use of multiple feedstocks with a focus on lower carbon intensity feedstocks such as animal fats and recycled cooking oils.

Biox-Corporation-logo“The Sombra acquisition represents a 75% increase in our production capacity and fits our strategy to control and distribute more gallons, leveraging our existing Sales and Marketing capabilities. We believe the Ontario market will play an increasingly important role in our distribution network. The implementation of the Greener Diesel program in Ontario, with its increasing blend rates and move toward lower carbon intensity fuels in 2017, made Sombra an attractive asset,” said Alan Rickard, BIOX CEO.

In April, Ontario implemented a Greener Diesel program based on biofuel percentage and carbon intensity. It also increases the use of biofuel from 3 percent to 4 percent in 2017. The regulation requires the use of an estimated 240 million litres of biobased diesel on an average greenhouse gas adjusted volume basis in 2017.

“We are already seeing with the increase in the Ontario mandate for 2016 that distribution of biodiesel from our Hamilton facility is shifting quickly from dependence on the U.S. market to fulfilling the demand in Ontario,” continued Rickard. “We expect this shift in distribution away from the U.S market to continue as the Ontario Greener Diesel mandate increases for 2017.”

BIOX currently supplies biodiesel to Shell Canada Limited through an inter-terminal pipeline that feeds directly to the Shell distribution terminal in Hamilton located adjacent to BIOX’s Hamilton facility.

advanced biofuels, Biodiesel

Jack Rogers @Novozymes Discusses #Ethanol Markets

Joanna Schroeder

Just what are the current market conditions affecting the ethanol industry today? To answer this question, Chuck Zimmerman needed to go no further than the Novozymes booth during this year’s Fuel Ethanol Workshop where he had a conversation with Jack Rogers about current industry challenges. Rogers is the global marketing manager in charge of Novozymes bioenzymes portfolio. He noted that one of the challenges the ethanol industry is facing today includes a big dip in few-16-8commodity prices so oil, corn and ethanol prices have come down dramatically.

We also see the supply demand balance. It’s very delicate at this point so margins for the producers are certainly compressed. As we look toward the near term outlook, margins are going to be tight. There will be a big emphasis on efficiency for the plants,” explained Rogers.

Like a great company should, Novozymes is responding to the market changes with keeping their customers’ needs top of mind. One way Novozymes is doing business during this time of lower commodity prices is working the different channels whether it be governmental or straight talk with the consumer.

Novozymes is certainly very active and dedicated in promoting the good messages we have with ethanol,” Rogers said. “So one of the key things we do want to do with ethanol is make sure that consumers understand the benefits. And when they do, we can actually grow the market. We’ve got a great product and the more we can grow the market the more room we can create for everyone and what we’re doing here.”

Novozymes is continually innovating the ethanol market. Rogers noted that going back to the aforementioned conditions, producers really have to find new ways to optimize using technologies and tools that weren’t before available. “What we’ve done is broaden our product portfolio to make sure we have products that are finetuned to whatever process conditions, to whatever performance and cost targets that our customers have.”

Learn more about how Novozymes is helping their customers stay profitable during all market conditions by listening to Chuck’s interview with Jack Rogers here: Interview with Jack Rogers, Novozymes

You can find photos from the 2016 FEW here: 2016 FEW Photo Album

Coverage of the Fuel Ethanol Conference is sponsored by
Coverage of the Fuel Ethanol Conference is sponsored by Novozymes
Audio, biofuels, enzymes, Ethanol, FEW, Novozymes

#FEW16 Panel Focuses on Unlocking Marketplace Access

Joanna Schroeder

few-16-7A conversation took place during the FEW Ethanol Workshop this week that focused on how to get greater market access for ethanol blended fuels. The panel, “Exploring Strategies to Unlock Greater Marketplace Access for Conventional and Advanced Biofuels,” featured ethanol experts on the frontlines of increasing ethanol infrastructure across the country. These are the men (and shout out to the women out there) who are working with fuel retailers and others to assist them in offering their customers more options at the pump.

The panel was moderated by Tom Bryan, president of BBI International & Editor in Chief of Ethanol Producer Magazine. The panelists included:

  • Dave VanderGriend, CEO, ICM Inc.
  • Robert White, Vice President of Industry Relations, Renewable Fuels Association
  • Mike O’Brien, Vice President of Market Development, Growth Energy

Listen to the full panel discussion here: Exploring Strategies to Unlock Greater Marketplace Access

You can find photos from the 2016 FEW here: 2016 FEW Photo Album

Coverage of the Fuel Ethanol Conference is sponsored by
Coverage of the Fuel Ethanol Conference is sponsored by Novozymes
Audio, biofuels, E15, E85, Equipment, Ethanol, FEW, Growth Energy, RFA

USGC Works with Korea on #Ethanol Fuel

Joanna Schroeder

Koreans are learning about the potential for #ethanol use as a fuel. A U.S. delegation that included the U.S. Grains Council (USGC), Renewable Fuels Association (RFA), Growth Energy and USDA’s Foreign Agricultural Service, held a workshop in Seoul, Korea to give an outlook on global ethanol supply and demand. The group also shared information about past experiences with ethanol policy. The workshop served as a forum for discussion about opportunities of using ethanol in their fuel supply.

Korea-ethanol1Today Korea only uses ethanol for industrial, not fuel, purposes, and the audience at the event had little background with blending. The country consumes about 3 billion gallons of gasoline per year, more than any market in Asia other than China, India and Japan.

“With more than 60 representatives from Korea’s energy industry in attendance, we laid the groundwork to create a favorable atmosphere for the introduction of bioethanol in Korea in the future,” said USGC Director in Korea Haksoo Kim, who participated in the conference. “While this workshop was just step one, the engaged questions and interested audience suggest we are making a difference.”

Following the workshop, the group held meetings with Korea’s energy association, K-Petro, and the largest non-fuel ethanol company in Korea, Changhae Ethanol, to discuss experiences and technologies from the U.S. fuel ethanol industry.

“Based on the feedback we received from this activity, we believe that the energy industry in Korea wants to cooperate with us to learn more about fuel ethanol and possibly develop Korea’s fuel ethanol industry in the future,” Kim said. “To build on our success from this workshop, we will work on developing a follow-up program for late this year or early next year.”

biofuels, Education, Ethanol, Growth Energy, International, RFA, USGC

.@BIO says @EPA Sending the Wrong Signal

Joanna Schroeder

@EPA is sending the wrong signal for advanced biofuels according to the Biotechnology Innovation Organization (BIO). The #biotech organization has released a new analysis that finds investment patterns clearly demonstrate the EPA is sending a sustained market signal that disincentivizes advanced biofuels, causing a $22.4 billion shortfall in necessary investment.

Figure 2: Annual and Cumulative Number of Second-Generation Biofuel Deals by Type. Data from Bloomberg New Energy Finance; Ocean Park Advisors; United Nations Environment Programme.

Figure 2: Annual and Cumulative Number of Second-Generation Biofuel Deals by Type. Data from Bloomberg New Energy Finance; Ocean Park Advisors; United Nations Environment
Programme.

“EPA recognizes that its delays in rulemaking [under the Renewable Fuel Standard/RFS] from 2013 to 2015 undercut investment in advanced biofuels. The agency fails to recognize, however, that its methodology – including in the newly proposed 2017 rule – also undercuts investment in advanced biofuels,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section. “Data on investment in the biofuel sector bears out that EPA’s methodology has forced producers to consolidate investment in conventional biofuel production capacity and distribution infrastructure, while sacrificing investment in advanced.”

Erickson continued, “Following yet another year of policy instability, BIO now estimates that EPA’s rulemaking delays, unwarranted expansion of its waiver authorities, and methodology for setting annual RVOs has caused a $22.4 billion shortfall in investment in advanced biofuels. EPA is sending a sustained market signal that disincentivizes and discourages advanced biofuel producers, who have reached a stage where investment in proven technologies and processes could rapidly expand availability of cleaner, low-carbon transportation fuels.”

He added that this trend can change course if the EPA modifies in 2017 proposed rule to increase renewable fuel volumes and to “obviate competition among biofuel developers”. This action, said Erickson, would ensure the U.S. transportation fuel market is open to every gallon of renewable fuel that can be produced.”

advanced biofuels, BIO, EPA, RFS

#FEW16 Panel Focuses on Realizing Ethanol Potential

Joanna Schroeder

few-16-6Some of the biofuel industry’s top leaders took to the stage at the Fuel Ethanol Workshop (FEW) this week to discuss opportunities for the biofuels industry to help it achieve its true potential in the light of the Renewable Fuel Standard and the EPA’s apparent dragging of the feet in getting renewable fuel volumes to mandated levels and higher. One element of the discussion was continuing to build out infrastructure for mid-level and higher level blends of ethanol such as E15 and E85, an effort that would break through the so-called blend wall.

The panel discussion, “Pathways to Fully Realizing the Bold Promise of the Broader Biofuels Industry,” was moderated by Tim Portz, executive editor of Ethanol Producer Magazine. Panelists included:

  • Brian Jennings, Executive Vice President, American Coalition for Ethanol
  • Geoff Cooper, Senior Vice President, Renewable Fuels Association
  • Anne Steckel, Vice President of Federal Affairs, National Biodiesel Board
  • Brooke Coleman, Executive Director, Advanced Biofuels Business Council

Listen to the full panel discussion here: Pathways to Fully Realizing the Bold Promise of the Broader Biofuels Industry

You can find photos from the 2016 FEW here: 2016 FEW Photo Album

Coverage of the Fuel Ethanol Conference is sponsored by
Coverage of the Fuel Ethanol Conference is sponsored by Novozymes
ACE, advanced biofuels, Audio, Biodiesel, Ethanol, FEW, NBB, RFA

.@Novozymes Helps #Ethanol Producers Unlock Potential

Joanna Schroeder

A common theme that will never go away is how to make more with less. One way ethanol plants can identify ways to save resources as well as money is through better data management and analysis. During this year’s Fuel Ethanol Workshop (FEW), Novozymes’ Technical Services Manager, Laurie Duval educated ethanol producers on just this topic in her presentation, “Unlocking the potential of your plant data for profitability.” Duval manages a team of field scientists that are in the plants implementing Novozymes’ products and helping customers troubleshoot their problems. She also works with data analytics and digital customer engagement tools.

few-16-5Duval explained in an interview with Energy’s Chuck Zimmerman during FEW that many of the plants are just collecting their data and storing it for review later. But if they can find ways to better bring their data to the forefront and analyze it regularity, then they can start to look for trends earlier and maybe catch some problems before they occur and before they cost them lots of money. Data analytics could even create some trends where ethanol plants are actually able to optimize around parameters that can help them make more ethanol or more products. “And that’s really the goal of getting better with data in the plants,” Duval noted.

Novozymes is working with data solutions companies throughout the industry together with their customers, trying to find, on a case-by-case basis, the best way to work with those individual plants and the systems they have to help them improve their profitability.

Interested ethanol facilities can contact Laurie Duval directly or their technical scientist.

To learn more about using data to increase profitability, listen to Chuck’s interview with Laurie Duval here: Interview with Laurie Duval, Novozymes

You can find photos from the 2016 FEW here: 2016 FEW Photo Album

Coverage of the Fuel Ethanol Conference is sponsored by
Coverage of the Fuel Ethanol Conference is sponsored by Novozymes
Audio, biofuels, Ethanol, FEW, Novozymes