Ethanol Co-product Exports Set Record in 2015

Cindy Zimmerman

ddgsExports of the ethanol co-product and livestock feed distillers grains set a new record of 12.56 million metric tons last year, according to a new summary of ethanol co-product trade statistics released by the Renewable Fuels Association (RFA). U.S. exports of distillers grains were 11 percent higher than 2014, and more than double the amount exported in 2009.

“This report shows the global reach of American-made distillers grains,” said RFA president and CEO Bob Dinneen. “In 2015, an estimated 34 percent of U.S. distillers grains production was exported, meaning one out of every three tons produced was shipped to foreign markets. These data make it crystal clear that the U.S. ethanol industry is both fueling and feeding the world. It is also worth noting that DG exports were worth almost $3 billion in 2015, providing a critical source of revenue to ethanol producers.”

The report finds that U.S. DG exports were shipped to 45 countries on five continents in 2015. RFA’s summary shows exports of distillers grains were shipped to 45 countries on five continents in 2015 with China, Mexico, Vietnam, South Korea, and Canada representing the top five markets. Half of the exports went to China, Mexico received 13 percent, and both Vietnam and South Korea received five percent.

corn, Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Ethanol Evolution Sees Industry Consolidation

Joanna Schroeder

This week in New Orleans, “Ethanol Evolution: The Data and Deals Driving the Future,” was a topic during the 21st Annual National Ethanol Conference (#RFANEC). The panel was moderated by Mike Jerke, CEO, Guardian Energy; and included Mark Fisler, Managing Director, Ocean Park Advisors; and John Christianson, Primary Partner, Christianson & Associates, PLLP.

nec16-evolutionDuring the discussion, Fisler said that the North American biofuels industry saw a major consolidation of players last year and this year is pointing to the same trend.

“Our experience leads us to believe there will be an increased number of owners and boards of renewable fuel companies evaluating their options in 2016, if not testing the market for reasonable assessments of the value of their plants,” noted Fisler. He added that the ethanol industry in particular is ripe for consolidation although there are still 94 standalone ethanol plants that have annual production capacity of 5.3 billion gallons, or about 36 percent all North American ethanol production volumes.

To learn about about this trend as well as how the ethanol industry is faring financially, listen to the Ethanol Evolution panel discussion: Ethanol Evolution Panel

View Power Point presentation.

2016 National Ethanol Conference Photo Album

Audio, biofuels, Ethanol, National Ethanol Conference, RFA

OPIS’ Tom Kloza Discusses Energy Markets

Joanna Schroeder

nec16-klozaDuring the 21st Annual National Ethanol Conference (#RFANEC) this week, one of the hot topics was the energy and ethanol market outlooks especially with the low oil prices the globe is currently experiencing. Tom Kloza with the Oil Price Information Service (OPIS) offered attendees the outlook for ethanol, oil and natural gas markets in his presentation, “Wronger for Longer – sideways look at North American Energy Supply.”

“What would you have imagined would be more unlikely 3 or 4 years ago?” Kloza asked in his introduction. “That a hip-hop version of Alexander Hamilton would win the Tonys on Broadway? That America’s Dad Bill Cosby would be America’s serial rapist? Or that the person who was the greatest athlete in the world in 1976 Bruce Jenner was now a woman? Or that oil prices were a $110 a few years ago and now are struggling to get out of the 20s?”

Your answer may change after you listen to Kloza’s remarks here: Tom Kloza, OPIS, Energy Markets Outlook Remarks View Power Point presentation.

2016 National Ethanol Conference Photo Album

Audio, biofuels, Ethanol, National Ethanol Conference, Natural Gas, Oil, RFA

Abigail Fisler Shares Her #RFANEC Experience

Joanna Schroeder

nec16-scholarshipAbigail Fisler was the recipient of this year’s National Ethanol Conference (NEC) scholarship awarded by the Renewable Fuels Foundation. She is a junior at Dickinson College in Carlislie, PA studying environmental studies with a focus on renewable energy and climate change. Last year she attended her first NEC show and wanted to attend again because of all the great educational and networking opportunities.

Before she headed back to the books, she spoke with Cindy Zimmerman about some of the highlights of her time at the ethanol conference. She prefaced her answer with “that’s a tough one” but noted she really enjoyed the panel that included Alicia Lindauer with the U.S. Department of Energy (DOE). “I grabbed her at the networking reception and talked with her about what her career path has been and about her education path that led her there, and I thought it was really interesting to talk with her.”

Other areas that particularly interested her were discussions around why some areas are implementing E15 and other areas are not, and why some places have lots of flex fuel vehicles while others don’t.

To learn more about Abigail’s growing interest in renewable fuels (she’s been a fan since 4th grade) and to hear more about her NEC experience, listen to Cindy Zimmerman’s interview with NEC Scholarship winner Abigail Fisler: Interview with Abigail Fisler

2016 National Ethanol Conference Photo Album

Audio, biofuels, Education, Ethanol, National Ethanol Conference, RFA

Comet Biorefining to Build Biomass to Sugar Plant

Joanna Schroeder

TransAlta Energy Park located in Sarnia, Ontario will be the new home of a commercial scale biomass to sugar facility operated by Comet Biorefining. The facility is expected to be operational by 2018 and will produce 60 million pounds per year of dextrose sugar from locally sourced corn stover and wheat straw.

Comet Biorefining logoComet, using its proprietary patented process, coverts the biomass into sugar and then the sugar will be converted into biobased products including organic acids, amino acids and bioplastics. The company notes that the biobased products will replace petroleum-based materials, reduce greenhouse gas emissions and help Canada reach its climate reduction goals. Comet also says its dextrose is cost and performance competitive with commercial dextrose sugars.

Andrew Richard, CEO of Comet said, “Construction of this first-of-a-kind plant represents a key step towards the large-scale commercialization of our cellulosic sugar business. It highlights the important role our technology plays in the value chain, helping to drive the bioeconomy and reduce greenhouse gas emissions.”

The company says it chose to locate in Sarnia by working together with Bioindustrial Innovation Canada (BIC), the Ontario Federation of Agriculture (OFA) and an Ontario farmers’ cooperative on a project to attract sustainable technology providers to the region and to meet increasing demand from chemical suppliers and consumers for low-carbon products.

“Establishing new uses for agricultural residues in the bio-based chemical supply chain leads to sustainable farms and new markets. Both outcomes are primary goals of the OFA, and this project does just that,” added Don McCabe, OFA’s president.

biochemicals, biomass, biomaterials, bioplastics

#RFANEC Biofuels Policy Panel

Cindy Zimmerman

nec16-policyThe future of U.S. biofuels policy was the topic of a panel at the 2016 National Ethanol Conference this week in New Orleans.

Renewable Fuels Association (RFA) president and CEO Bob Dinneen moderated the panel, which included industry and government stakeholders, but no representative from the Environmental Protection Agency, even though they were invited to participate. “They had expressed some real enthusiasm for talking about this with us,” said Dinneen. “On December 8th, when we filed a lawsuit (against EPA over the RFS volume obligations), the enthusiasm waned a bit.”

Alicia Lindauer with the U.S. Department of Energy did join the panel, representing the government. “Quite frankly, the Department of Energy is doing far more in terms of the analysis and work on future fuel and technology,” Dinneen said.

Also on the panel was Fuels Institute Executive Director John Eichberger and Jan Koninckx, Global Business Director for Advanced Biofuels with DuPont Industrial Biosciences. Listen to their conversation here: NEC Biofuels Policy Panel

2016 National Ethanol Conference Photo Album

advanced biofuels, Audio, Energy, Ethanol, Ethanol News, National Ethanol Conference, RFA

Price of Oil Crushes Liquid Transportation Fuels

Joanna Schroeder

This is a special editorial authored by Joanna Ivancic, executive director for Advanced Biofuels USA. It is based on a two-part series looking at how low crude prices are affecting biofuels.

Price of Oil Crushes Liquid Transportation Fuels–Renewable and Not — Now What?

“Europe should promote the development of home-grown alternatives to imported oil and gas,” according to former NATO Secretary General Anders Fogh Rasmussen, who was Joanne-headshotcropped-196x300Danish Prime Minister from November 2001 to April 2009 in an interview with Bloomberg’s Ewa Krukowska about Russian domination of European energy resources. “Wind and solar are well-known success stories but I’d also point to biofuels as an example of an alternative energy source with a lot of potential.”

In the US, in a two-part series, Advanced Biofuels USA correspondent Robert Kozak identifies the same concerns for energy security and the same solution–development of home-grown alternatives.

In addition, his analyses of the effect of low oil prices on the liquid transportation fuels industry and the potential for a reinvigorated US shale oil/gas industry with and without government subsidies reflects this growing international appreciation that we are at a crossroads, at a moment when the energy choices we make will have far-reaching consequences.

Either we will continue in an energy resource system where the energy czars have their boots on the necks of importing countries; or we grab the reins of freedom to become self-sustaining. Either we continue to pollute our air and water to the point that unrest threatens or we use the technologies that science gives us to reverse our harmful stewardship of the planet.

In Part 1 of the series, Why Oil Is Cheap in October 2015, Kozak points out that the bottom fell out of business-as-usual in the oil industry not only due to oversupply, but due to that oversupply being offered at below market prices to finance continued conflict in the Middle East.

In Part 2, “After the Fall: Rebuilding US Liquid Fuel Production – Invest in Our Land or the Shale Oil Fields?” Kozak reviews recent experts’ predictions about the trajectory of oil prices, analyses how they went wrong and the current situation of debt and decline in the US shale oil/gas industry.Read More

advanced biofuels, Oil, Opinion, Renewable Energy

RFA Releases 2016 Ethanol Industry Pocket Guide

Joanna Schroeder

nec16-pocket-guideDuring the 21 Annual National Ethanol Conference (NEC) this week in New Orleans, the Renewable Fuels Association (RFA) released the 2016 Ethanol Industry Outlook and the Pocket Guide to Ethanol. Both resources provide up-to-date statistics, insights and analysis on the critical issues affecting the U.S. ethanol industry. Topics found in the guides include the Renewable Fuel Standard (RFS), background information on market activity, and the latest facts and figures regarding energy security, the environment, the economy, agriculture and trade.

“As the information contained in these editions show, 2015 proved to be a banner year for the ethanol industry,” said RFA President and CEO Bob Dinneen. “These publications are meant to give readers the best overview possible of the industry so that they get a true sense of how far this industry has come and where it is expected to head next. With so much misinformation clouding the reality about ethanol, it is important for consumers, investors, and policymakers to be armed with the facts contained in these publications.”

New this year is a series of downloadable two-page issue briefs based on the Ethanol Industry Outlook, and offers a complete overview of each topic, along with detailed charts and graphs. The Pocket Guide to Ethanol contains the same information as the Outlook, but in a simpler, portable format that includes many myth-busting factoids about ethanol.

2016 National Ethanol Conference Photo Album

biofuels, Education, Ethanol, National Ethanol Conference, RFA

RFA Chairman Pleased with #RFANEC

Cindy Zimmerman

nec16-doyalRenewable Fuels Association (RFA) chairman Randall Doyal believes the 2016 National Ethanol Conference was one of the best ever and he’s very pleased with attendance.

“Attendance is up over last year,” said Doyal. “I’ve heard people who thought that everyone would be depressed because margins are non-existent and we’re looking at some really tough times, but the industry’s kind of matured and people have gotten their feet under them – and it’s not their first rodeo.”

The CEO of Al-Corn Clean Fuel of Minnesota has been in the industry for over three decades and says he’s seen a lot of ups and downs over the years. “Oil’s overproduced, ethanol’s overproduced and the solution to that is low prices and folks slowing down production and that’s the way commodities work,” he said.

Still optimistic about the future for the ethanol industry, Doyal strongly encourages all stakeholders to voice their concerns to the auto industry in support of continued Flex Fuel Vehicle (FFV) production by taking part in the new “Flex My Choice” campaign. “My wife and I own three vehicles, all three are flex fuel, and none of them are flex fuel in the current model year – that’s not okay,” he said. “We like those vehicles, we bought them for a reason, and we won’t buy them again. General Motors, Chevrolet, Ford – they need to wake up and they need to hear our voice.”

The new campaign provides ways for interested parties to send a clear message to the auto makers, to EPA and even to their local dealers that they want to see them continue to make and sell FFVs, which can use up to 85% ethanol blends.

Listen to my interview with Randy here: Interview with RFA Chairman Randall Doyal

2016 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

Making #Ethanol the Consumers’ Choice

Cindy Zimmerman

nec16-willcoxAn expert on consumer marketing offered some recommendations on how to make ethanol the natural choice for consumers during the National Ethanol Conference (NEC) in New Orleans this week.

Matthew Willcox, executive director of the Institute of Decision Making, gave a presentation on how insights from behavioral science can be used by fuel marketers to affect consumer choice at the pump regarding ethanol use. Willcox also released a report on the topic, which was commissioned by the Renewable Fuels Association (RFA).

Among his recommendations:

Rather than pitching products on the basis of benefits, ethanol marketers should also consider how to mitigate the feelings of potential losses that may arise when moving from the status quo choice.

Make the example of others adopting the behavior change you require visible to the people whose behavior you want to change. For ethanol, marketers might consider making messages about how many cars are powered by ethanol, how many miles are driven, or simply how many people have chosen ethanol-based fuels more prominent.

Framing benefits in the present is important. So to communicate the benefit that ethanol based fuels are cleaner, think about how that can be made visceral and immediate.

Listen to Willcox’s presentation here: Matthew Willcox at NEC16

2016 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA