New Ethanol Terminal Slated for Texas

Joanna Schroeder

Screen Shot 2016-06-15 at 11.04.55 AMGreen Plains, Inc. (GPRE) continues its growth with a new joint venture with Jefferson Gulf Coast Energy Partners to construct and operate an intermodal export and import fuels terminal at Jefferson’s existing terminal located in Beaumont, Texas. It’s anticipated that the 50/50 joint partnership investment for Phase I development will be $55 million. The first phase, expected to be finished during the second quarter of 2017, will focus on adding storage and throughput capabilities for multiple grades of ethanol. Going forward, the companies plan on adding capabilities to add other liquids products such as liquid hydrocarbons, vegetable oils and other non-liquid commodities.

“Once completed, we believe this terminal will provide Green Plains and other customers with significant advantages over other locations,” said Todd Becker, President and CEO of Green Plains. “As demand for the products we produce continues to grow both globally and domestically, we want to create a world class solution to service our customers. Access to three Class I railroads, barges and inbound/outbound vessels positions the terminal with transportation and cost advantages that will make this a successful partnership. This terminal will be one of the most modern and efficient solutions in the U.S.”

The joint venture’s terminal will have direct access to multiple transportation options including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF and KCS railroads. GPRE says Phase I development will leverage existing infrastructure at the Jefferson terminal and is expected to include approximately 500,000 barrels of storage with expansion potential of up to 1,000,000 barrels.

“We are excited to be partnering with one of the largest ethanol producers and traders in North America. This project will add the necessary infrastructure at Jefferson Beaumont to distribute ethanol to markets worldwide,” added Greg Binion, President and CEO of Jefferson, a subsidiary of Fortress Transportation and Infrastructure Investors LLC. “Green Plains Trade Group will be the anchor customer of the joint venture, and the terminal is expected to serve other ethanol exporters as well. We are confident that Jefferson’s multimodal capabilities and sustainable cost-advantaged logistics will contribute to the success of this joint venture.”

biofuels, Ethanol, Exports

NFU Calls on Lawmakers to Stop Undermining #Biofuels

Joanna Schroeder

House lawmakers met this week to debate the Department of Defense Appropriations Act for FY2017 and one of the provisions up for debate is to exempt the U.S. military from biofuels use. The National Farmers Union (NFU) is calling on legislators to stop undermining national security and adopt the benefits of advanced biofuels.

National Farmers Union logo“Biofuels aid national security by reducing our nation’s foreign energy dependence and contributing to our Administration’s broader climate goals. The recurring attempts to quietly neutralize biofuels through the defense appropriations process are disappointing,” said NFU President Roger Johnson. “I am hopeful this provision will be successfully removed in further negotiations over the bill.”

The appropriations bill, as written, would exempt the military from Section 526 of the Energy Independence and Security Act of 2007, which prohibits federal agencies from making bulk purchases of synthetic fuels with a larger greenhouse gas footprint than traditional petroleum. However, especially in the advanced biofuels industry, the military’s use of biofuels has been a long-standing source of encouragement for new technologies. These technologies, says NFU, that are held out of transportation fuel markets by the exploitative practices of Big Oil.

Johnson concluded, “Section 526 is an important aspect of the Energy Independence and Security Act, one that has tremendous implications for family farmers’ ability to protect food security in a changing climate. I encourage lawmakers to carefully weigh the benefits of biofuels as they consider this provision.”

advanced biofuels, Biodiesel, Cellulosic, Ethanol, military, NFU

GRFA Calls on COP21 Parties to Take Action

Joanna Schroeder

The Global Renewable Fuels Alliance (GRFA) is calling on countries who have adopted the 21st Conference of the Parties (COP21) climate agreement to take immediate action. Of 195 attending countries, 177 have signed the official agreement. Bliss Baker, GRFA president, is calling for increased use of biofuels blending as part of these countries’ national carbon reduction plans. The transportation sector produces an estimated 25-30 percent of the world’s greenhouse gas (GHG) emissions. Baker says that biofuels, such as ethanol, are a cost-effective and immediate option for adoption and deployment.

GRFA logo“The GRFA is encouraged by the support for strong action to address climate change coming out of COP21” said Baker. “But if we are to have any hope of meeting the ambitious targets laid out in that agreement, substantial action is going to have to be taken soon. Biofuels represent a significant step in the right direction that governments can take today.”

GRFA cites that of the 162 intended nationally determined contributions (INDCs) submitted to date, more than 60 recognized the advantages of biofuels-supportive policies by including them in their carbon emission reduction plans.

Baker pointed out that in addition to the parties to the agreement at COP21, third party groups like the B Team coalition of chief executives and the Carbon Pricing Leadership Coalition have expressed their support for strong public emissions reduction policies that will provide the predictability necessary for the private sector to be able to develop long-term plans.

“Introducing biofuels supportive policies to reduce emissions from the transportation sector in the short and medium term just makes sense.” Baker added, “The biofuels industry will have a significant role to play in international efforts to transition away from carbon-intensive fossil fuels in the transport sector, and the GRFA looks forward to working with governments to develop policies to achieve those goals.”

biofuels, Climate Change, Ethanol, International

Formulae SAE Races to Lincoln on #Ethanol

Joanna Schroeder

HM_Formula_SAE_CompetitionFormulae SAE is racing into Lincoln with some of the racecars fueled by ethanol. Universities from around the world will race their custom Formula-style cars at Lincoln Air Park June 15-18, 2016 during the Formula SAE series. One of the competitors is the Husker Motorsports team that is being sponsored by the Nebraska Ethanol Board (NEB) and races on E85 (85 percent ethanol and 15 percent unleaded gasoline). The teams have a choice to use E85 or unleaded gasoline.

“E85 provides several technical advantages over gasoline,” said Charles Lee, a junior mechanical engineering major and the team’s lead powertrain engineer. “The high ‘latent heat of vaporization’ of ethanol creates a cooling effect to the combustion process, and the high octane rating makes E85 the ideal choice for an efficient, powerful engine. Aside from the technical benefits, we use E85 to help support Nebraskans.”

The Lincoln Formula SAE competition started in 2013 with only seven teams in the combustion category competing with E85. This year, 20 cars will race with E85 in their tanks.

Husker_Motorsports_Building_Car“Higher ethanol blends have become widely accepted as racing fuels, and it’s great to see students from across the world choosing to race on E85,” said Megan Grimes, Nebraska Ethanol Board public relations coordinator. “The cleaner-burning, higher octane benefits of ethanol is why NASCAR now races on E15.”

This year’s competition will include 100 teams – 80 combustion and 20 electric – from all over the world. According to James Peck, a senior mechanical engineering major and the team’s project manager, the size and diversity of the event makes it a great experience.

“Although we’re competing against one another, the atmosphere is always friendly and helpful,” he said. “Everyone is willing to talk about their car or help by lending tools, parts and materials. It’s an honor being the host team because we represent our sponsors locally and university fans can come watch the race.”

E85, Ethanol, Racing

Flint Hills Resources to Add Grain Capabilities

Joanna Schroeder

Flint Hills Resources, located in Iowa Falls, Iowa, has rolled out plans to begin adding grain capabilities. The ethanol plant will soon begin construction on improvements that include a new grain receiving pit and material handling upgrades. When complete, the project will more than double the biorefinery’s receiving speed while cutting truck turn times in half.

Flint Hills ResourcesAccording to Flint Hills, the new pit will increase receiving speeds by nearly 175 percent and truck turn times, from probe to exit, will be reduced by nearly 55 percent. The pit is expected to be open in time for harvest – October 1, 2016.

“We are excited to be making these investments in our plant,” said Matt Hamburg, plant manager at Flint Hills Resources Iowa Falls. “At Flint Hills, we strive to create value for our customers, and we hope these improvements will enhance our customers’ experience while on our site.”

In addition, Flint Hills Resources is currently hiring for open positions available at its seven ethanol facilities in Arthur, Fairbank, Menlo, Shell Rock, Iowa Falls, Iowa, Fairmont, Nebraska, and Camilla, Georgia, and its regional offices in Ames, Iowa. Click here for more information.

biofuels, Ethanol

DuPont Develops Momomers From Biorefining Process

Joanna Schroeder

DuPont is adding value yet again to the biorefining process. The company is working with ADM on a collaboration to convert fructose to momomers to polymers that can be used in consumer products. Last week attendees at the Corn Utilization and Technology Conference (CUTC16) learned about this emerging technology from Michael Saltzberg who is the business director for DuPont Industrial Biosciences’ biomaterials business.

cutc-16-michael-saltzbergSaltzberg spoke on the Biorefining II panel where he discussed a new product they are developing in collaboration with ADM. They are working on a new momomer that uses fructose, from corn, as the raw material. It’s a process that uses chemical catalysis in a several step process that takes fructose to a momomer that’s called furan dicarboxylic acid methyl ester or FDME.

What’s exciting, said Saltzberg, is that this momomer can be used to make exiting new polymers especially in the packaging area. For example, helping soft drink and beer manufactures downgage their packaging but offer the same shelf life is important for them he said.

So what does this mean for the biorefinery industry? Saltzberg noted a major focus of the conference is to see what other applications can utilize some of the corn fractions. “This is a great way to take corn starch to fructose to a very valuable chemical out of it. So I think for the ag processing industry and for farmers it offers that kind of opportunity,” he said.

And for a company like DuPont, added Saltzberg, being able to develop new momomers through renewable raw materials and creating new polymers out of them enables them to assist their customers in solving some of their challenges.

To learn more about emerging momomers and their applications, listen to Chuck’s interview with Michael Saltzberg: Interview with Michael Saltzberg, DuPont

Check out pictures from the conference: 2016 CUTC Photo Album.

Agribusiness, Audio, biochemicals, biomaterials, bioplastics, bioproducts, corn, CUTC

#Corn and #Soy Groups Testify for #RFS

Cindy Zimmerman

Leaders for the National Corn Growers Association (NCGA) and American Soybean Association (ASA) were among the more than 120 who testified at an EPA field hearing in Kansas City in support of statutory volume obligations for biofuels under the Renewable Fuel Standard (RFS).

NCGA president Chip Bowling testifies at EPA hearing

NCGA president Chip Bowling testifies at EPA hearing

NCGA president Chip Bowling of Maryland urged EPA to follow the law and finalize the 2017 conventional renewable fuel renewable volume obligation (RVO) at the 15-billion-gallon statutory level. “The EPA and this Administration made a pledge to the American people to become energy independent by developing American-based energy sources such as corn ethanol,” said Bowling. “Farmers responded by growing enough corn for all of our needs. Businesses responded by investing in production infrastructure across rural America. As a result of these government promises and private efforts, the U.S. is able to sustain a prosperous renewable fuels industry. Now it’s up to EPA to deliver on its promises.”

Listen to Bowling’s testimony here: NCGA president EPA hearing testimony

NCGA Chairman Martin Barbre of Illinois also testified, noting that the RFS was a successful policy when EPA first began proposing changes in 2014. “The RFS was doing exactly what it was intended to do: driving the adoption of domestic renewable alternatives to petroleum, supporting jobs across the country, ensuring the United States remains a global leader in developing renewable energy sources and decreasing greenhouse gas emissions here at home. The EPA’s proposal threatens these outcomes,” said Barbre.

Listen to Barbre’s testimony here: NCGA chairman EPA hearing testimony

Former ASA chairman and Iowa soybean farmer Ray Gaesser called on EPA to increase the proposed volumes for biomass-based diesel to 2.5 billion gallons. “We think EPA should enthusiastically support more aggressive, but easily achievable, volume targets for biodiesel,” said Gaesser. “We see no reason why EPA should not, at a minimum, support biomass-based diesel volumes of 2.5 billion gallons for 2018.”

Listen to Gaesser’s testimony here: ASA chairman EPA hearing testimony

Check out the EPA Hearing Photo Album.

Coverage of EPA RFS Hearing made possible by Coverage of EPA RFS Hearing made possible by Renewable Fuels Association
Audio, Biodiesel, biofuels, corn, EPA, Ethanol, Ethanol News, NCGA, Soybeans

Did or do you have a summer job on a farm?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What would a Bayer Monsanto buyout mean for ag?”

Bayer AG made a $62 billion bid to acquire Monsanto Company recently that was rejected by the board of the St. Louis-based agribusiness, but the door was left open for further negotiations. It seems a small majority say a merger like this would be bad news for agriculture. However, a close second believe it would equal better solutions for farmers and I totally agree.

Here are the poll results:

  • Better solutions for farmers – 28%
  • Bad news – 38%
  • Consolidation is inevitable – 17%
  • Don’t know – 11%
  • Don’t care – 6%

Our new ZimmPoll is now live and asks the question, Did/do you have a summer job on a farm?

Summertime on the farm is the busiest time of the years. The added hours of sunlight provide amply time to get as must as possible accomplished. However, added help is usually needed. Hiring teens for those added jobs is common practice nationwide. Some come with some background knowledge about farm work, but most learn by doing. Are you currently spending your summer vacation working on a farm whether it’s your families or not? Or in the past did you have the opportunity take in the life skills farm work provides?

ZimmPoll

@FarmBureau Calls for Strengthening #RFS

Joanna Schroeder

rfs-works The Renewable Fuel Standard (#RFS) must continue to operate as it was defined by Congress in 2007 said Randy Caviness during the EPA Hearing in Kansas City, Missouri last Thursday. Caviness serves as a member of the American Farm Bureau Federation (AFBF) Issues Advisory Committee on Energy and biofuels, and thus the RFS, are huge priorities for the committee. He also represented the Iowa Farm Bureau with his remarks.

“EPA’s decision not to follow the intent of Congress in the 2007 RFS is highly disappointing to all of agriculture,” said Caviness. “This decision strikes a blow to conventional ethanol production and dampens the prospects for the further development of advanced biofuels.”

Caviness speaks from personal experience about how ethanol benefits farmers, rural economies and consumers. He has farmed for 28 years without energy-intensive tilling and leads initiatives to install wind turbines in Adair and Cass counties in Iowa. “Reducing RFS hurts agriculture and rural communities at a time when the down economy already has many producers in a pinch,” he told the panel of EPA representatives who were on hand to listen to nearly 140 personal stories from ethanol supporters. Only a handful of those testifying were against the RFS.

Caviness added, “Our nation’s farmers can grow more bushels of corn and soybeans on fewer acres to feed and fuel the world. “But if these reduced volumes are finalized, this decision will stall growth and progress in renewable fuels as well as the broader agricultural economy.”

Listen to Caviness’ testimony here: AFBF testimony at EPA hearing

EPA Hearing Photo Album.

Coverage of EPA RFS Hearing made possible by Coverage of EPA RFS Hearing made possible by Renewable Fuels Association
Agribusiness, Audio, Biodiesel, biofuels, EPA, Ethanol, RFS

‘Fueling Our Future 100’ Funds Available in Iowa

Joanna Schroeder

Iowa has launched a new program for retailers to assist them in adding infrastructure to sell higher ethanol blends – Fueling Our Future 100. The initiative is a partnership between state government, including collaboration between the Governor’s office, Iowa Department of Agriculture and Land Stewardship, Iowa Department of Transportation, and Iowa Economic Development Authority. There are $400,000 dollars available to retailers to assist with the purchase and installation of blender pumps and underground storage tank infrastructure for higher blends of ethanol such as E15, E30 and E85.

Kum and Go E85 price June 2016Applications must be received at the Iowa Department of Agriculture and Land Stewardship’s office by 4 p.m. on Monday, June 20, 2016. Pumps and tanks funded through this program are currently required to be operational by December 30, 2016 and continue operations for the intended purpose of dispensing higher blends of ethanol through December 31, 2021.

“Iowa retailers have shown a willingness to invest in infrastructure to deliver renewable fuels and customers have shown they are interested in choosing to increase the amount of clean burning, homegrown renewable fuels they use,” said Iowa Secretary of Ag Bill Northey who announced the funding availability. “Through this program we have supported the installation of more than 200 blender pumps and 24 underground storage tanks and now have some additional funds to add even more.”

Iowa received a $5 million competitive grant from the United States Department of Agriculture (USDA) Biofuel Infrastructure Partnership (BIP) program to support the initiative. These funds must be matched by non-federal funds, including $2.5 million from the Iowa Renewable Fuels Infrastructure Program (RFIP). The fueling sites applying for assistance will also be required to provide a minimum of $2.5 million.

biofuels, E15, E85, Ethanol