#Propane Power on a Roll

Joanna Schroeder

growmark-propane-beckyPropane power is on a roll these days, going far beyond it’s traditional uses of home heating and grain drying, moving into areas such as fleet vehicles and school buses. To learn more about propane’s market expansion, Cindy Zimmerman spoke with Becky Hornblower, GROWMARK’s propane marketing and technical services manager. GROWMARK is one of the country’s largest retailers of propane.

According to Hornblower, GROWMARK markets propane in 16 states and operates more than 300 company-owned transports, which she said really helps with their supply network. This resulted in the sale of more than 200 million gallons of propane sold in fiscal year 2015, and this year looks even stronger.

One major area of growth for the company is the autogas market and Hornblower noted that their members have been really proactive in growing this market. She explained autogas is the term used when propane is used in a motor-fueled vehicle such as a pickup truck, car, bus, fleet delivery vehicle and the like.

Their network is growing and they have specific accounts and networks in Iowa, Wisconsin and Illinois for school systems that are operating their school buses using propane autogas. They also have municipality accounts, transit and commercial lawn company accounts to name a few.

“This market presents not only a strong opportunity for our position in the industry, especially as you look at growth year round versus cyclical cycles with residential and ag demand,” said Hornblower. She added that end users are really seeing the benefits of the cleaner burning aspects of propane. For example propane is easier on the engines saving maintenance costs and prolonging engine life. She said that there are tax credits and incentives for propane conversion and use and propane is safer than gasoline.

What about savings in action? She said one school district reported savings of more than $300,000 over 10 years with their propane autogas bus fleet.

Learn more about propane in this week’s ZimmCast: Interview with Becky Hornblower, GROWMARK

Alternative Vehicles, Audio, GROWMARK, Propane

RFA: Ditch the ‘Ditch Ethanol’ Sign Lowes

Joanna Schroeder

The Renewable Fuels Association (RFA) is calling out Lowes for its “ditch ethanol” signage at stores. In a letter to Lowes CEO Robert Niblock, RFA CEO and President Bob Dinneen urged the removal of a sign appearing at several Midwest locations that inaccurately warn consumers not to use ethanol blends in small engines. Dinneen writes that the “Ditch the Ethanol” sign contains numerous statements that “are simply incorrect and are contrary to the very guidance found in the owner’s manuals on the shelves of your own stores.”

“We find the sign very troubling and are concerned with the massive amount of misinformation posted to ostensibly educate consumers,” said Dinneen. “We urge Lowe’s to remove the misleading sign, or else we may be forced to pursue legal efforts to prevent the further dissemination of false information to consumers.”

Lowes-Ethanol-SignIn the letter, RFA rebutted each statement made on the sign, including:

Ethanol burns hotter and wears out your small engine faster.

  • Every small engine that you offer at Lowe’s was designed and engineered to run on ethanol blends up to 10% ethanol. If you read any small engine owner’s manual found at Lowe’s, you will see this fact, and that all warranties cover the use of ethanol blends up to 10% ethanol. If this sign was intended for higher blends of ethanol, it should be clarified, and also should be noted that any blend of ethanol in small engine applications would be illegal. This would include E15 and E85. All blends above 10% are clearly labeled at the pump to ensure consumers know that they are not purchasing E10 (or 10% ethanol).
  • Ethanol blended gasoline does not wear out your engine faster, or the manufacturers could not offer warranty to cover today’s fuel. I have personally used E10 in all of my small engines for more than two decades, and have yet to have an issue. This statement makes it seem like Lowe’s has some unique insight and data on engine wear that the own manufacturers that make the engines do not. I highly doubt that is accurate.

Most pump gas contains 10% or more ethanol.

  • It is true that most pump gas contains ethanol, but 10% ethanol or less, otherwise known as E10 (or fuel approved for all small engine use). Roughly 96% of all unleaded sold today contains 10% ethanol.
  • There are only ~180 stations that sell E15 and ~3,400 stations that sell E85, both of which are not approved for small engines. But, these two higher blends are definitely not commonplace in the 140,000 retail fuel stations.”

“I am asking respectfully that Lowe’s work with us to remove this misleading signage at your stores immediately,” Dinneen concluded.

Ethanol, Ethanol News, RFA

Renewable Chemicals Tax Credit Passes in Iowa

Joanna Schroeder

The Iowa Senate has approved a new five-year production tax credit for renewable chemicals. The goal of the incentive is to drive innovation in the sector within the state. Renewable chemicals will be defined in Iowa’s tax code as having at least 50 percent biobased content and not being used as food, feed or fuel. The value of the tax credit is limited to $105 million over five years. Identical legislation was approved yesterday by Iowa’s House Ways and Means Committee.

Joe Hrdlicka, executive director of the Iowa Biotechnology Association (IowaBio), said of the news, “Iowa is securing a leadership position in building a biobased economy, creating new economic opportunities for farmers and manufacturers, and generating well-paying jobs. We thank Gov. Terry Branstad and Director of the Iowa Economic Development Authority Debi Durham for championing this policy.”

Brent ENew-Bio-Logorickson, Executive Vice President of BIO’s Industrial & Environmental Section, added, “Renewable chemicals help protect the environment and create new jobs. Iowa’s new tax credit will encourage biotechnology and renewable chemical companies to make investments and deploy innovative homegrown technology in Iowa. BIO will continue to work with the Iowa legislature, other states and the federal government to level the playing field in economic development incentives for renewable chemical and biobased manufacturing technologies.”

BIO, biochemicals

Celebrate Biodiesel Day Today

Joanna Schroeder

9 things about biodieselToday is National Biodiesel Day and the celebration of Rudolf Diesel, the inventor of the diesel engine. Many will remember that similar to the first “gas” engine running on ethanol, the first “diesel” engine ran on peanut oil. In fact, National Biodiesel Board (NBB) notes that when he created his engine, he envisioned a time when vegetable oils would one day be as important as petroleum among transportation fuels. Because of his foresight, and his contribution of the compression ignition engine, Biodiesel Day is celebrated on the anniversary of Diesel’s birthday.

“I can’t imagine what Rudolf Diesel would think if he saw how his vision has come to fruition in today’s commercial biodiesel industry, a more than 2 billion gallon US market,” said NBB chairman Ron Marr. “It is here, now, cutting carbon emissions, supporting domestic green energy jobs, and benefiting consumers from coast to coast.”

To celebrate Biodiesel Day, here are nine facts about biodiesel that will rev you up! But first, a super cool video about biodiesel.

    Read More

advanced biofuels, Biodiesel, NBB, Video

EPA, CFTC to Share RFS& RIN Data, Analysis

Joanna Schroeder

The U.S. Commodity Futures Trading Commission along with the Environmental Protection Agency (EPA) have entered into a Memorandum of Understanding that allows the agencies to share data and analysis on the Renewable Fuel Standard (RFS). As part of the deal, the agencies will cooperate and coordinate on topics relevant to the RFS and the market for Renewable Identification Numbers (RINS).

CFTC logoMore specifically, the MOU states, with the partnership the Commission can, “advise EPA on techniques that could be employed to minimize fraud, market abuses or other violations, and to conduct appropriate oversight in RIN and renewable fuels markets to aid EPA in successfully fulfilling the EPA’s statutory functions…” Sharing of the information will “…increase the CFTC’s understanding of the operation of and participants in those markets.” CFTC is an independent federal agency that regulates U.S. futures and options markets.

In response to the news, the Renewable Fuels Association (RFA), RFA President and CEO Bob Dinneen stated, “We are encouraged to see that EPA is coordinating and cooperating with CFTC to identify methods for improving the transparency and efficiency of the RIN market. For several years, RFA, members of Congress, and other stakeholders with an interest in the success of the RFS have been requesting that EPA coordinate with CFTC to take steps to prevent manipulation and increase transparency in the RIN market. Through this agreement, we believe CFTC will provide valuable expertise and insight that will improve the functionality and clarity of the RIN system for all market participants and the public.”

Biodiesel, biofuels, Ethanol, RFA, RFS, RINS

Absolute Energy Celebrates 10 Years

Joanna Schroeder

Absolute energy logoThe Renewable Fuels Association (RFA) has congratulated Iowa ethanol producer Absolute Energy for celebrating its 10th anniversary.

The company was formed in early 2006 and began construction of its St. Ansgar, Iowa, ethanol plant in June 2006. Production began February 2008 with an initial production capacity of 100 million gallons per year, but grew over time to its current capacity of 125 million gallons per year. The ethanol plant also markets dried distillers grains and corn oil.

“We are thrilled to celebrate this milestone with member company Absolute Energy,” said RFA President and CEO Bob Dinneen. “U.S. ethanol is the lowest cost, highest octane source in the world and we are proud of their contribution to this industry. We look forward to celebrating more occasions with Absolute Energy.”

Ethanol, Ethanol News, RFA

Propane Conversion in a Snap

Joanna Schroeder

During the Indianapolis Work Truck Show earlier this week, Alliance AutoGas conversion techs Stephen Holland and Stacey Snyder installed the Alliance fuel engineered conversion system on a Bi-Fuel 2016 3.5 Liter Ford F-150 V6 in a little more than an hour an a half, setting a record.

Stephen Holland, Blossman Services Inc. Equipment Application Engineer and Stacey Snyder, Blossman Services Equipment Conversion Tech

Stephen Holland, Blossman Services Inc. Equipment Application Engineer and Stacey Snyder, Blossman Services Equipment Conversion Tech

The propane fuel system features a single plug wiring connector with a 21-gallon underbody autogas tank with all wiring at proper specs. Everything is bracketed anddesigned to be installed without any drilling or fabrication. Alliance AutoGas says by deploying these features, labor times and conversion costs are significantly reduced.

Ed Hoffman, President of Blossman Services Inc., the equipment distributor for Alliance AutoGas said of the new feat and new propane autogas technology, “The live, record-setting conversion of the F-150 at the Work Truck Show proved that Alliance’s EPA and NFPA 58 compliant system can indeed be installed in far less than half the time of other products in the market without any permanent vehicle modifications. We are also confident in saying that that fleets can experience a positive ROI with a partial asset life when reduced conversion costs are coupled with low, stable fuel prices as well as our warranty that doubles the industry standard.”

Stuart Weidie, President of Alliance AutoGas, who spoke at the Live Conversion event, added, “We are proud that our innovative and elegant fuel system design was installed in far less time than we ever anticipated. Alliances’ state of the art technology coupled with a positive environmental impact, is a winner in all regards. It is a definitive message that our system will take the lead on reducing costs, and any barriers associated with fleet conversions going forward throughout North America.”

In early May of this year, the converted F-150 will embark on the Alliance AutoGas Clean Air Coast-to-Coast Ride, a 5,300 mile trip beginning in Kansas City, KS, and ending  in Asheville, NC, on May 20.

Alternative Vehicles, Propane

REG Acquires Sanimax Energy’s Biodiesel Plant

Joanna Schroeder

The Renewable Energy Group, Inc. has finalized its acquisition of Sanimax Energy’s biodiesel plant in DeForest, Wisconsin. The 20 million gallon per year facility, now called REG Madison, LLC, is now REG’s 11 active biodiesel plant in the U.S. and brings their annual production to 450 million gallons.

The 20 million gallon REG Madison biorefinery is Renewable Energy Group's 11th active biomass-based diesel refinery in the US and expands REG's nameplate production capacity to more than 450 million gallons annually. (Photo Courtesy REG)

The 20 million gallon REG Madison biorefinery is Renewable Energy Group’s 11th active biomass-based diesel refinery in the US and expands REG’s nameplate production capacity to more than 450 million gallons annually. (Photo Courtesy REG)

REG paid Sanimax $11 million in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant.

“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG Vice President, Manufacturing. “We welcome the newest members of our team at REG Madison and are proud to be a part of the DeForest community.”

Most of the biodiesel employees have agreed to stay on with REG. The biorefinery is located just north of Madison, Wisconsin and began production in 2007 using yellow grease, rendered animal fats and inedible corn oil. It uses the same REG patented high free fatty acid processing technology as its plant in Seneca, Illinois.

advanced biofuels, Biodiesel

GMO Labeling Bill – What Should Congress Do?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What do you look forward to most in spring?”

I don’t think it really matters who won this week’s poll. What really matters is Spring is right around the corner and Spring means new beginnings. Farmers are busy preparing their fields and livestock babies of all shapes and sizes are being born each day. I am looking forward to many things and warmer weather tops my list.

Here are the poll results:

  • Warmer weather – 38%
  • Green grass & flowers – 28%
  • Planting – 10%
  • Spring showers – 5%
  • Other -19%

Our new ZimmPoll is now live and asks the question, What should Congress do about GMO labeling?

Despite the best efforts of Senate Agriculture Committee Chairman Pat Roberts (R-KS), the Senate failed to invoke cloture on the Biotechnology Labeling Solutions Bill in a 48-49 vote, blocking advancement of the legislation that would create a voluntary federal standard for labeling foods with genetically modified ingredients. Hundreds of agricultural organizations supported the Roberts bill and are disappointed in the outcome. What should be done now? Let us know how you feel.

ZimmPoll

House Hearing Attacks #RFS

Cindy Zimmerman

The House Oversight Subcommittees on Interior and Healthcare, Benefits and Administrative Rules held a joint hearing Wednesday to ostensibly examine the Renewable Fuel Standard but was basically an attack on the law.

hearing-grundlerEPA Office of Transportation and Air Quality Director Chris Grundler provided testimony at the hearing and attempted to explain the purpose and intent of the RFS, including what the agency can and cannot do under the law, to obviously unfriendly lawmakers who used the forum to bring up every argument against renewable fuels, from food versus fuel to the blend wall. Grundler repeatedly noted that the job of the EPA was to implement the law as Congress intended. “Introducing new fuels into the marketplace, especially cellulosic biofuels, is not an easy task,” said Grundler. “But that is the challenge Congress took on with the RFS program and we are committed to implementing the program … as Congress intended.”

hearing-tynerPurdue economics professor Dr. Wally Tyner was the lone voice on the panel supporting the benefits of the RFS, calling it one of the “appropriate and effective ways to move our economy towards lower GHG emissions.”

No one from the U.S. biofuels industry was invited to testify, which was distressing to the ethanol industry. “Unfortunately, the committee has stacked the witness list with oil company apologists intent upon undermining public support for this important program,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. “Why is the committee afraid to hear all sides of the debate?”

“Holding a hearing on the RFS without any biofuels stakeholders is unacceptable and defeats the very purpose of what this congressional committee is tasked to accomplish,” added Growth Energy CEO Tom Buis. “The lack of diversity of opinions on this panel exemplifies political theater designed to drive a false narrative and discredit the success of the RFS. Furthermore, one of the most vocal RFS critics on the witness list was a professor who has been funded by the American Petroleum Institute (API).” He was referring to John DeCicco, a research professor with the University of Michigan Energy Institute, who conducted an unfavorable study on the RFS last year funded by the American Petroleum Institute.

The subcommittees also heard anti-RFS testimony from ActionAid USA and The Heritage Foundation.

Ethanol, Ethanol News, Government, RFA, RFS