Ethanol Contributed $2B to Minnesota’s Economy

Joanna Schroeder

A new study by ABF Economics found that the ethanol industry in Minnesota contributed $2.13 billion to the state’s gross domestic product in 2015. The report also found the industry generated $7.37 billion in gross sales for the same year. This in turn generated $1.6 billion worth of income for Minnesota households, supported 18,116 full-time jobs and contributed $93 million to state and local taxes. In addition, the ethanol industry created indirect jobs including jobs in retail trade, health care, natural gas distributors, banking and finance.The report was commissioned by the Minnesota Bio-Fuels Association.

Refinery_1“The ethanol industry continues to be a significant contributor to Minnesota’s economy and is vital to continued economic growth in the state,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

For the study, ABF Economics used the Impact Analysis for Planning (IMPLAN) economic model to construct a model of the Minnesota economy including the sectors that support the ethanol industry, the links between them and the level of economic activity.

John Urbanchuk, managing partner of ABF Economics said of the report, “Ethanol plants provide jobs and income not only for people who work at the plants, but also for businesses that sell ethanol plant supplies including Minnesota farmers who produce most of the corn used by Minnesota’s biofuel industry.”

The study found Minnesota’s 21 ethanol plants spent $2.05 billion in 2015 to produce 1.2 billion gallons of ethanol, 3.6 million tons of dried distiller’s grains (DDGs) and 198 million lbs of corn oil. In addition, the study reported the volume of ethanol produced last year, the study said, was 11 percent higher than 2014.

Also of note, the study found, “If all of the corn refiner’s oil produced by Minnesota ethanol plants was used as a biodiesel feedstock, it could produce more than 26 million gallons of biodiesel, or more than 40 percent of the biodiesel produced by Minnesota’s biodiesel plants.”

biofuels, Ethanol

RFA: Corn Ethanol Net Energy Improves

Joanna Schroeder

A new analysis from the Renewable Fuels Association (RFA) finds that the net energy balance of corn-based ethanol at dry mill ethanol plants averages between 2.6 to 2.8, a improvement over previous estimates. Recent estimates from the U.S. Department of Agriculture (USDA), found net energy gains between 2.1 to 2.3. However, RFA says its analysis uses more current dry mill energy use data than the USDA study; thus, explaining why its net energy balances are more favorable.

rfalogo1The net energy balance is a ratio of how much energy is required to grow the corn and produce the ethanol, and then transport the fuel to end users. For example, a ratio of 2.8, means every BTU of energy invested in the process to make and deliver ethanol results in 2.8 BTUs of available energy to the end user. (BTU is the acronym for British Thermal Energy, a measurement for energy.)

In February 2016, USDA issued its updated net energy balance report on corn-based ethanol, finding “[t]here has been a large improvement in energy balance since 1995, and a small but positive improvement since 2008.” The previous USDA report, conducted in 2010, was based on 2008-era data and found that the balance was 1.9–2.3. RFA’s analysis found that USDA used the same 2008-era dry mill energy use estimates for both its 2010 and 2016 reports.

According to RFA’s own analysis, “[t]he energy balance of the top-performing quartile of biorefineries is in the range of 3.2–3.4, which approaches the USDA estimate of 4.0 for an ideally situated dry mill producing wet distillers grains.”

RFA President and CEO Bob Dinneen commented, “As this new analysis shows, the U.S. ethanol industry has made tremendous efficiency gains in recent years. EPA should take note and update its lifecycle greenhouse gas modeling of corn-based ethanol under the renewable fuel standard to reflect these improvements. Today’s ethanol plants are achieving the levels of efficiency that EPA assumed wouldn’t occur until 2022.”

The RFA analysis used dry mill energy use data from two other widely respected findings to support its results — Mueller & Kwik (2013) and Christianson & Associates (2016).

biofuels, Ethanol, Ethanol News, RFA

Military Use of Biofuels Topic at BIO World Congress

Joanna Schroeder

World Congress-BIOsiteHeaderBanner_980x154Biofuel use and support will be a topic at the upcoming BIO World Congress. The Honorable Dennis McGinn, assistant secretary of the Navy, Energy, Installations & Environment, will be speaking about “Overcoming Challenges to Biorefinery Scale Up”. His remarks will take place Monday, April 18, 2016 at 4:30 pm. In 2009, under Secretary of the Navy Ray Mabus established aggressive goals to increase the Department of the Navy’s energy efficiency, decrease its reliance on foreign sources of oil, and diversify its shore and operational energy supplies. On January 20, 2016, Secretary Mabus kicked off the Great Green Fleet (GGF), a year-long initiative highlighting the Navy’s efforts to transform its energy use to increase operational capability.

“The United States Navy and Marine Corps are diversifying our energy sources to increase our operational flexibility, which strengthens our ability to provide the global presence that is our mission,” said McGinn in advance of his presentation. “We’ve purchased drop-in, cost-competitive alternative fuel for our ships and we are helping to grow our domestic alternative fuel industry.”

Monday’s “Overcoming Challenges to Biorefinery Scale Up” General Plenary Session will address what is needed to ensure the successful scale up of a commercial industrial biotechnology process. The panel will be moderated by Dan Cummings, Chief Executive Officer, Guidewire Strategies and speakers include: Jeff Lievense, Senior Engineering Fellow, Genomatica; Dennis McGinn, Assistant Secretary of the Navy – Energy, Installations & Environment, U.S. Department of the Navy; and Alan Propp, Business Development Manager, Merrick & Company.

“The United States Department of the Navy has taken bold, determined steps toward energy security, by adopting cost-competitive biofuels and alternative energy sources. The Navy’s leadership has enabled advanced biofuel producers to create partnerships and put steel in the ground for new biorefineries,” added Brent Erickson, executive vice president for BIO’s Industrial & Environmental Section. “We are looking forward to Assistant Secretary McGinn’s remarks about what the U.S. Navy has in store for the future.”

advanced biofuels, aviation biofuels, BIO, Biodiesel, bioenergy, military

Masdar Institute’s Food & Fuel Facility Goes Online

Joanna Schroeder

Masdar Institute is celebrating the successful opening of its new research facility that will grow food and produce fuel in desert lands irrigated by seawater. The facility is located on a 2-hectare site in Abu Dhabi, United Arab Emirates and is funded by the Sustainable Bioenergy Research Consortium (SBRC), a group dedicated to advancing the use of sustainable jet fuels.

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SBRC officials and guests participate in mangrove plantation at the new SEAS facility. From right: Dr Alejandro Rios G., SBRC Director, HE Dr. Thani Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment, Dr. Behjat Al Yousuf, Interim Provost, Masdar Institute, and Mohammed Al Ghailani, student at Masdar Institute.

“We live in a resource-constrained world where the access to energy, water and food are interlinked,” said Dr. Behjat Al Yousuf, Interim Provost of Masdar Institute, a research-based university in Abu Dhabi, and a founding member of SBRC whose organization will be operating the R&D facility. “Public-private collaboration to support cutting-edge research is needed to ensure that rising populations and industry can flourish sustainably, while, at the same time, also protect our finite resources. This project has the potential to turn resource scarcity on its head.”

The research facility is using coastal seawater to raise fish and shrimp for food (Aquaculture is one of the world’s fastest growing industries at six percent per year), whose nutrient-rich wastewater then fertilizes plants rich in oils that can be harvested for aviation biofuel production such as halophyte plants. These plants thrive in arid, desert conditions and don’t require fresh water or arable land, but according to Masdar Institute, the plant’s commercial potential is relatively unexplored. The final step in the process is diverting the wastewater to a cultivated mangrove forest, that further removes nutrients and provides carbon storage before the naturally filtered water and treated effluent flows back into the sea.

“By doing research on integrated food and energy systems, we can begin to explore how the cultivation of biomass contributes to feeding the planet, preserving fresh water supplies and delivering cleaner, more sustainable fuels,” said Dr. Al Yousuf. “This research is very relevant for the UAE and all freshwater- and arable land-constrained countries.”

Marc Allen, president of Boeing International, once of the founding SBRC members, added, “The aquaculture and biomass facility in Abu Dhabi holds tremendous promise to turn the 25.5 million square kilometers of desert and arid areas of the world into productive farmland, supporting both food security and cleaner skies.”

advanced biofuels, aviation biofuels, biojet fuel

#FlexMyChoice Massages at #Classic16

Cindy Zimmerman

classic16-rfaVisitors to the 2016 Commodity Classic had the opportunity to voice their support for Flex Fuel Vehicles (FFVs) and relax their aching muscles at the same time at the Renewable Fuels Association (RFA) booth.

It was the first opportunity for RFA to get their recently launched “Flex My Choice” campaign in front of the agriculture industry and Vice President of Industry Relations Robert White says many of the people they spoke to at Classic had no idea that auto makers were cutting their production of FFVs. “It doesn’t matter what part of agriculture you’re coming from, the phasing out or elimination of flex fuel vehicles will be devastating to the advancement and growth of our industry,” said White.

Beginning this year, the fuel economy credits given to auto makers for building flex fuel vehicles were phased out. “Ironically, now we have incentives for natural gas vehicles, so we’re encouraging fossil fuel usage over an alternative like E85,” White said.

Classic attendees who visited the RFA booth were able to fill out post cards to be sent to the main three automobile manufacturers, as well as EPA. While doing that, they were also able to get a nice chair massage, which was welcome relief for many who spent the day walking through the huge trade show catering to corn, soybean, wheat and sorghum farmers.

Listen to Robert explain more about Flex My Choice in this interview: Interview with Robert White, RFA, at Commodity Classic

2016 Commodity Classic Photo Album

Audio, Commodity Classic, corn, E85, Ethanol, Ethanol News, Flex Fuel Vehicles, NCGA, RFA

NCGA Identifies Ethanol as Driver for Demand

Joanna Schroeder

The National Corn Growers Association (NCGA) held a press conference this week during 2016 Commodity Classic to discuss several key issues facing the corn industry and highlight the efforts currently in place to create solutions to the challenges that have been facing growers.

NCGA president Chip BowlingNCGA Present Chip Bowling, a corn grower from Newburg, Maryland, said that the most important action the organization is taking on behalf of its members is creating more demand for corn products. Ethanol, said Bowling, is an important element to increasing demand.

“Ethanol is the most important driver for future growth of corn demand,” said Bowling during his remarks. “We’re investing in fuel pump infrastructure that will give customers more access to higher ethanol blends. USDA has provided $100 million in matching grants to help us with this effort. We’re also pushing for changes that would give every American year round access to E15. At the same time we’re protecting the Renewable Fuel Standard (RFS), which provides renewable, clean energy and increases our nation’s energy independence.”

Bowling noted that in January, NCGA banded with other organizations in court to challenge the EPA’s renewable volume obligations (RVS) under the RFS, which are under statutory levels. “We’re pushing for our case to be heard before EPA announces 2017 RVO numbers that are supposedly coming out at the end of March.”

Listen to the full press conference here:
NCGA Press Conference at Commodity Classic

2016 Commodity Classic Photo Album

Agribusiness, Audio, Commodity Classic, corn, Ethanol, NCGA

U of York Team Aids in Biofuel Enzyme Research

Joanna Schroeder

A global research team is working together to help develop more efficient production methods for biofuel production. Scientists at the University of York are part of this team looking at how natural occurring enzymes can be used to degrade microbe-resistant biomass. The research is part of ongoing study of a recently discovered family of enzymes produced by fungi and bacteria, which are able to break down tough cellulose-based materials such as plant stems. The hope is that by understanding how the naturally occurring enzymes work, they can then be improved for industrial purposes, principally the production of biofuels from sustainable sources.

leaffeat

Photo credit: Julia Walton

Professor Paul Walton and Professor Gideon Davies of the Department of Chemistry at York, two members of the team recently presented the first published molecular structure of one of the key enzymes (lytic polysaccharide monooxygenases or LPMOs) involved in these processes. The paper appeared in Nature Chemical Biology.

The research shows how the ‘active site’ of the enzyme changes when it binds to plant cell wall cellulose, and this knowledge, say the scientists, is important in advancing understanding of the reaction chemistry.

“LPMOs have overturned our thinking about biomass degradation in biology; they are also essential components in the commercial production of bioethanol from cellulosic feedstocks,” said Professor Walton. This new structure will help chemists and biochemists improve the efficiencies of these important enzymes.”

Professor Davies added, “When we can understand structure and chemistry we can improve environmentally-friendly processes for the benefit of all. This work, by a combined European team, gives us unparalleled molecular insight into one of the key reactions catalysed by fungi. It is truly exciting.”

The new research resulted from a European consortium project entitled Critical Enzymes for Sustainable Biofuels from Cellulose (CESBIC) involving York and the Universities of Copenhagen and Cambridge, CNRS Aix-Marseille Université, France, Chalmers University of Technology, Sweden, and industrial partner Novozymes A/S in Denmark.

advanced biofuels, enzymes, Research

ROUSH Aids Nestlé Waters Switch to Propane

Joanna Schroeder

ROUSH CleanTech has recently assisted several companies convert to greener fleets. Nestlé Waters North America is adding 150 medium-duty beverage delivery trucks (Ford F-650) fueled by propane autogas. According to ROUSH CleanTech, over the vehicles’ lifetime, the 155 Ford F-650 trucks will reduce carbon dioxide emissions by more than 24.6 million pounds. These units will be deployed beginning in April.

“Becoming a better steward of our environment is a priority for Nestlé Waters,” said Bill Ardis, national fleet manager for Nestlé Waters North America, speaking at the NTEA Work Truck Show. “We’ve been running propane autogas vehicles since 2014. Because of gI_86569_Nestle Waters F650the proven emissions reductions and cost savings, we knew it was the right choice to expand our fleet with this domestically produced alternative fuel.”

Each delivery truck is equipped with a California Air Resources Board- and Environmental Protection Agency-compliant ROUSH CleanTech propane autogas fuel system with a 45-usable gallon fuel tank. Mickey Body in High Point, North Carolina, upfitted the vehicles with side-load beverage bays.

The new medium-duty delivery trucks, added to the company’s existing autogas fleet of 30 Ford trucks of the same model, will also help the company save on maintenance and fuel costs. Ardis added, “Autogas allows us to operate without compromising standard delivery methods and reduce operational costs. Customers have already noticed that our trucks operating on autogas are quieter and cleaner,” said Ardis who noted their fuel savings per gallon is about $1.

“Fueling beverage delivery trucks with propane autogas offers the best total cost of ownership,” said Todd Mouw, vice president of sales and marketing for ROUSH CleanTech. “By choosing this safe, abundant and American-made fuel, fleets around the nation have reduced operating costs and lowered their carbon footprint.”

Alternative energy, Propane

RFA: API Understates Benefits of RFS

Joanna Schroeder

Is the American Petroleum Institute (API) changing its RFS tune? In a recent interview with POLITICO Pro Energy’s Morning Energy, API President and CEO Jack Gerard said his organization was pivoting its strategy toward reforming the Renewable Fuel Standard (RFS) rather than continuing to call for an outright repeal. A change of tune for sure but whether it’s on key remains to be seen.

dontmesswithRFS_logoRenewable Fuels Association President and CEO Bob Dinneen responded to Gerard’s comments. “API claims they are winning and that the RFS no longer holds the political currency it once did. So why are they then changing course? The reason for the change in approach is that API’s narrative on the RFS is a fiction and Jack Gerard knows it. API can’t continue to support repeal of the RFS because Americans want fuel choice, they want to reduce our dependence on petroleum, they want to address global climate change, they want the evolution of our transportation fuel system to continue. They want the RFS. API knows repeal of the RFS will never happen so they need to change course. That’s not winning. That’s recognizing that you have lost.

“But their ‘reform’ will be equally bankrupt. They will attempt to eviscerate a program they despise because it has robbed them of their monopoly and name it reform. Eliminating the corn ethanol part of the RFS, for example, would render the RFS a toothless tiger. More than 90 percent of the RFS is currently met by corn ethanol, so they would get their monopoly back. That would just tighten oil supplies and raise consumer gasoline costs. More importantly, without corn ethanol, the foundation for next-generation biofuels would be eliminated and the tremendous progress we have made toward cleaner, lower carbon fuels would be lost. That’s not reform. That’s capitulation to an overly entitled oil industry that simply does not share America’s desire to see cost-competitive low-carbon fuels in the marketplace.

“It galls Jack Gerard and the API that support for ethanol and the RFS remains strong among consumers and the Congress despite all the money they have thrown at creating their false narrative. Their acknowledgement today that they need to change course is a white flag. They’ve given up. But beware their next move. It too will not be in the best interests of consumers or American energy and environmental policy.”

biofuels, Ethanol, RFA, RFS

Mid American Agri Products Adds Cellunator

Joanna Schroeder

Mid American Agri Products/Wheatland (MAAPW) has gone online with Cellunator from Edeniq at its ethanol and biodiesel facility located in North Platte, Nebraska. According to Edeniq, the technology will increase the plant’s 44 million gallons per year (MGPY) of ethanol production by pretreating the corn slurry to liberate additional starch. The MAAPW facility also produces three MGPY of biodiesel. The resulting cellulosic ethanol gallons will quality for D3 RINS under the Renewable Fuel Standard (RFS).

Edeniq-Logo“We selected Edeniq’s Cellunator technology because of its proven track record at accessing residual starch and its ability to also pretreat corn kernel fiber to enable production of cellulosic ethanol at our plant,” said Robert Lundeen, CEO of MAAPW.

In addition to installing Cellunators, MAAPW has an option to license the Pathway Technology. Edeniq’s Pathway Technology integrates Edeniq’s Cellunator equipment with cellulase enzymes to convert corn kernel fiber to cellulosic ethanol. The company says its Pathway Technology utilizes existing fermentation and distillation equipment to produce up to 2.5 percent cellulosic ethanol and a 7 percent increase in overall ethanol yield.

“We are excited that Mid American Agri Products/Wheatland has partnered with us to increase their ethanol yield,” said Brian Thome, President and CEO of Edeniq. “We look forward to continuing to work hand in hand with their team to maximize their return on investment with our technology.”

advanced biofuels, Cellulosic, corn, Ethanol