Economic and Octane Benefits of #Ethanol

Cindy Zimmerman February 18, 2016

The latest study on the economic impact of the ethanol industry released at the National Ethanol Conference this week shows the renewable fuel added $44 billion to the nation’s gross domestic product and supported nearly 360,000 jobs last year.

The study, conducted by ABF Economics, quantified the impact of domestic ethanol production in 2015 on the national economy. “It really highlights the enormous contribution this industry makes to our nation’s economy and workforce, particularly in rural areas,” said Renewable Fuels Association Senior Vice President Geoff Cooper. He notes that the ethanol industry also helped boost household income by $23.5 billion and increased federal, state and local taxes by $8.7 billion.

“We also look at the impact on the economy from displacing oil consumption,” Cooper added. “The industry produced 14.7 billion gallons of ethanol last year, which was a record, and that meant we didn’t need to import 527 million barrels of crude oil.”

Listen to an interview with Cooper here: Interview with Geoff Cooper, RFA

While the economic benefits of ethanol may be less significant today with lower oil prices, the higher octane benefits of the renewable fuel are unaffected by price fluctuations. Cooper hosted two panels at the NEC this year focused on those high octane benefits. “Ethanol’s octane rating of about 113 is far superior to the octane rating of other gasoline components that come out of a refinery and that makes ethanol extremely valuable to refiners and gasoline blenders,” said Cooper.

One panel on Tuesday focused on “Octane 101” and a Wednesday panel went into more detail on the economic and environmental benefits of higher octane fuels. Experts on that panel included Robert McCormick with the National Renewable Energy Laboratory; Confluence Consulting president Vincent Kwasniewski; and Platts biofuels analyst Jordan Godwin.

Listen to that panel here: Second NEC Octane Panel

2016 National Ethanol Conference Photo Album

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

Iowa Biodiesel Day on the Hill

Joanna Schroeder February 18, 2016

Chad Stone/IBB Chair/REG (far right), Grant Kimberley/IBB exec dir (Center) speak with Mark Smith (head of table), Iowa House Democratic Leader

“Iowa Biodiesel Day on the Hill” recently took place hosted by the Iowa Biodiesel Board (IBB). During the event, members called on state legislators to extend and expand biodiesel incentives that are set to expire. IBB notes these incentives help Iowa’s 13 biodiesel producers make the state the top in the country for production. In 2015, 12 of these biodiesel facilities produced a record 242 million gallons of biodiesel. There is also a retailers credit that encourages fuel retailers to carry biodiesel blends, and according to the Iowa Department of Revenue, biodiesel-blended gasoline accounted for 48.9 percent of diesel gallons sold in 2014.

The event included pubic education and a luncheon where IBB members met with legislators to discuss 2016 legislative priorities. These include:

Extending the Biodiesel Production Credit, set to expire at the end of next year. The credit is 2 cents per gallon on the first 25 million gallons of production per biodiesel plant, and helps keep biodiesel production and economic activity in Iowa.
Extending the Biodiesel Promotion Retail Tax Credit, which provides petroleum retailers 4.5 cents a gallon on blends of at least 5 percent biodiesel (B5), set to expire at the end of next year. Market competition encourages this savings to be passed on to motorists.
Enhancing the Retail Tax Credit by adding a 2.5 cent credit (7 cents total) for blends of B11 and higher. This will encourage higher blends of biodiesel to be distributed in the state.
Supporting Governor Terry Branstad’s recommended appropriation to continue the successful Renewable Fuels Infrastructure Program, which helps fuel distributors and retailers update equipment to include biofuels.
Supporting the Biochemical Tax Credit legislation, which would stimulate more demand for biochemical production.

The state biodiesel policies in place have been effective in increasing production and consumption in Iowa, said Grant Kimberley, Iowa Biodiesel Board executive director.
“It makes sense that the majority of Iowa’s diesel fuel should contain at least some biodiesel, and we’re very interested in encouraging higher blends. Common sense would say we use our own fuel product rather than foreign oil. Expanding the retail tax credit for blends of B11 and higher would resoundingly help us accomplish that.”

Biodiesel, biofuels, politics

#RFANEC Panel on Marketing Higher Ethanol Blends

Cindy Zimmerman February 18, 2016

A really interesting session on getting more higher ethanol blends in the retail market unfortunately got cut a little short at the National Ethanol Conference this week due to USDA Secretary Tom Vilsack’s visit, but you can listen to the presentations by two industry leaders here.

Pennsylvania-based Sheetz, Inc. is a family-owned chain of gas station/convenience stores located in six states. Michael Lorenz, Sheetz executive vice president of petroleum supply, says they made a commitment last year to put E15 in 60 North Carolina stores. “We’re currently actually in 34 stores, so it’s kind of a dubious honor but we’re the single largest retailer of E15 in the country,” said Lorenz to applause. “We also plan to do another 100 locations in four other states.”

In his presentation, Lorenz talks about why they chose to start in North Carolina, why the believe in E15, and how they are educating consumers about the fuel. Michael Lorenz of Sheetz at NEC16

The job of Protec Fuel is to help retailers like Sheetz get the infrastructure they need to offer higher ethanol blends to consumers.

“We do station infrastructure and conversion, we handle E85 and E15 blending, we handle all the full logistics for them,” said Protec CEO Todd Garner. “So, essentially it’s a turnkey operation that allows the retailer to really not have to lift a finger to use E85 and E15.”

Garner was okay with having to give up some of his time on the program to accommodate Secretary Vilsack, since it is thanks to USDA’s Biofuel Infrastructure Partnership (BIP) that they are being able to help more retailers offer higher ethanol blends. “We estimate about an extra 215 stations that we’re going to include into our existing infrastructure, which equates to about another 1000 dispensers that we will install over the next year or so,” said Garner.

Listen to Garner’s presentation here: Protec CEO Todd Garner at NEC16

View the Protec Fuel powerpoint presentation.

2016 National Ethanol Conference Photo Album

Audio, blends, E15, E85, Ethanol, Ethanol News, National Ethanol Conference, Protec Fuel, Retailers, RFA

GFRA Calls to End Fossil Fuel Subsidies

Joanna Schroeder February 18, 2016

Global Renewable Fuels Alliance (GRFA) President Bliss Baker is calling on national leaders to eliminate all fossil fuel subsides, especially in light of the current low price per barrel costs. According to the International Energy Agency (IEA), the estimated global fossil fuel subsidies are worth $490 billion. IEA is also predicting global oil demand will drop 25 percent in 2016 to 1.2 million barrels per day. Theoretically fossil fuel subsidies are supposed to increase energy access during periods of high prices; however, with the current state of global energy markets these subsidies, says Baker, are only succeeding in discouraging investment in energy efficiencies and renewables.

“The persistent oversupply of oil, and the resulting low prices, gives countries an opportunity not seen in recent memory to eliminate fossil fuel subsidies and encourage a transition to viable low-carbon energy sources like ethanol,” Baker said. “World leaders couldn’t ask for better circumstances to take action.”

A landmark agreement on combating climate was reached in Paris last December during COP21. The goal is to keep the global temperature rise from exceeding 2°C above pre-industrial levels in this century. This is to be achieved by shifting to a global low carbon economy and encouraging the development of clean technologies as the basis for future development.

Baker notes that over the past year 30 countries have reduced their fossil fuel subsidy programs (the U.S. is not included in this number) in recognition of the fact that current low oil prices reduces the impact of eliminating consumer fossil fuel subsidies. Baker adds that these subsidy reductions also results in lower domestic national emissions of greenhouse gases.

“It is blatantly counter productive for governments to continue to subsidize the industry that contributes the majority of global greenhouse gas emissions, especially after 195 countries agreed that drastically cutting back GHG emissions was necessary to combat climate change.” Baker concluded, “It’s time to take the brakes off of clean technology development and meaningfully begin the transition to a sustainable future.”

Biodiesel, biofuels, Ethanol, Oil

Reports Find Increasing Ethanol Efficiency

Joanna Schroeder February 18, 2016

Two recent reports have found that ethanol production continues to become even more efficient. The U.S. Department of Agriculture’s (USDA) Office of Chief Economist and titled, “2015 Energy Balance for the Corn Ethanol Industry“. The second report titled, “Literature Review of Estimated Market Effects of U.S. Corn Starch Ethanol,” was published by the University of Missouri, Food and Agricultural Policy Institute (FAPRI).

Corn field on BJ and Bob Funke’s Iowa farm. Photo Credit: Joanna Schroeder

Both studies reported that ethanol production continues to be increasingly energy efficient, and that increased production would continue to benefit the farm economy by increasing corn prices. Both reports also find that even with increased corn ethanol production, there would be more than enough corn to meet the needs of animal producers such as livestock.

USDA Ag Secretary Tom Vilsack said in a statement regarding the report findings, “Between 1991 and 2010, direct energy use in corn production has dropped by 46 percent per bushel of corn produced and total energy use per bushel of corn by 35 percent. Moreover, between 2005 and 2010, direct energy use fell by 25 percent and the total energy use by 8.2 percent per bushel—meaning that between 2005 and 2010, the energy required per bushel of corn produced dropped by about 5 percent. The bottom line is, today, more energy is being produced from ethanol than is used to produce it, by factors of 2 to 1 nationally and by factors of 4 to 1 in the Midwest. ”

In response to the reports, Growth Energy Co-Chair Tom Buis stated, “The USDA report confirms several things the ethanol industry has been saying for years – efficiency in ethanol production is on the rise.” Buis continued by noting for years Big Oil and special interests have been attempting to drive a narrative that is false and an effort to maintain their fuel transportation fuel monopoly. He also pointed out that the FAPRI study found there was no definitive impact on global land use.

“These reports definitively prove that the misinformation and lies being spread by Big Oil and special interests hold absolutely no merit. Ethanol production has become, and continues to be more efficient,” Buis added, “Furthermore, Secretary Vilsack was spot on when he noted that, ‘there are many reasons to be optimistic about the future of the bio-economy and the role biofuels and advanced biofuels will play in the future.’”

biofuels, corn, Ethanol, Growth Energy

RFA Honors Iowa Governor for #Ethanol Support

Cindy Zimmerman February 17, 2016

Iowa Governor Terry Branstad has been recognized for his unwavering support of ethanol as the recipient of the RFA 2016 Industry Award. The Industry Award is bestowed annually to individuals that demonstrate great dedication and innovation within the industry.

Since the governor had a conflict and was unable to attend the National Ethanol Conference in New Orleans this week, Absolute Energy president Rick Schwarck presented his award earlier this month in Des Moines. “Governor Branstad, you have been one of the most passionate, articulate, and effective advocates for value-added agriculture, farmers, and ethanol,” said Schwarck in a video of the presentation shown at the NEC.

Gov. Branstad at first National Ethanol Conference

Gov. Branstad is the longest-serving governor in American history, and is currently serving his sixth non-consecutive term after first being elected to office in 1983. Bob Dinneen, RFA president and CEO, noted that the governor has been a stalwart champion of the Renewable Fuel Standard since its inception.

“Governor Branstad was a founding member of the Governors’ Ethanol Coalition, and throughout his career he has worked tirelessly on behalf of our nation’s ethanol producers and farmers,” said Dinneen. “I can think of no better recipient for this year’s RFA Industry Award. The people of Iowa are lucky to have a man of such vision and character leading their state.”

Dinneen noted that Gov. Branstad attended the very first National Ethanol Conference held in Des Moines in 1996, during his first stint as Iowa’s governor, and was presented with an award at that time as well.

2016 National Ethanol Conference Photo Album

Ethanol, Ethanol News, National Ethanol Conference, RFA

Do You Have a Favorite Social Media Outlet?

Jamie Johansen February 17, 2016

Our latest ZimmPoll asked the question, “How many farm shows/conferences do you attend?”

We have a very wide spectrum in our results this week. It looks like most people attend around 2 to 5 farm shows or conferences each year. As you can guess, those on the AgWired Team would fit into the 5 plus category. I think a future poll should ask the impact farm shows have on making purchases or decisions on the farm.

Here are the poll results:

1-2 – 17%
2-5 – 30%
5+ – 27%
None- 26%

Our new ZimmPoll is now live and asks the question, What is your favorite social media outlet for agriculture?

It is rare to find someone who isn’t using social media for personal reasons, but when I find that person I respect their reasons. However, if you aren’t using social media to market yourself, business or social issue you are missing out and getting left behind. Social media is one of the greatest places to promote our agricultural community. Do you have a favorite platform?

ZimmPoll

High Octane Discussion at #RFANEC

Cindy Zimmerman February 17, 2016

With “Fueling a High Octane Future” as the theme for the 21st annual National Ethanol Conference, it was appropriate that the first panel focus on ethanol’s high octane properties and how they translate into high performance.

Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper moderated a panel of experts including Brian West with Oak Ridge National Laboratory; MathPro president Dave Hirshfeld; and Tom Leone, Powertrain Research & Advanced Engineering for Ford Motor Company.

The discussion included the basics of what octane is, how octane is measured, and how ethanol fits into that equation. Listen to the panel here: NEC16 Octane/Performance Panel

2016 National Ethanol Conference Photo Album

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

BioEnergy Bytes

Joanna Schroeder February 17, 2016

Whitefox Technologies Limited has announced that it has signed an agreement with Iowa-based Pine Lake Corn Processors (PLCP) to install the first Whitefox ICE Solution in the Midwest. PLCP operates a 30-million gallon per year ethanol plant in Steamboat Rock, Iowa. Whitefox’s technology reduces energy consumption, increases production efficiencies and contributes to the production of low-carbon ethanol.
On February 9, 2016, President Obama released his $4.15 trillion fiscal year FY2017 federal budget proposal, a 5 percent increase over 2016. In his final budget request, President Obama is seeking to increase funding for his top priorities—including clean energy and climate action. The Environmental and Energy Study Institute has released an issue brief looking at the FY2017 budget proposal as it relates to energy.
Alliance BioEnergy Plus, Inc. has announced that it has formed a strategic alliance with Harvesting Technology for the inclusion of their licensed and patented advanced separation process that the Company will utilize alongside its CTS cellulose conversion process in ethanol applications.
On the stage during the World AG Expo was Biogest who presented their biogas technology that they company says helps farmers see financial benefits from stover. The facility on display featured an integrated system capturing the entire stover process beginning with the harvest, to the special pre-treatment, to finally generating electric power and thermal energy in the biogas plant.

Bioenergy Bytes

ACE Video Highlights #E15 Market Potential

Joanna Schroeder February 17, 2016

The American Coalition for Ethanol (ACE) has released a new animated video targeted to retail fuel station owners and encouraging them to offer consumers #E15 at the pump. The piece highlights the rapidly growing number of vehicles on the road that can use E15. The video is located on the Flex Fuel Forward website, a source where retailers can share their experiences with E15 and other mid-level and higher ethanol blend.

“The number of vehicles on the road that can use E15 is huge – whether you’re talking about cars that are warrantied for E15, or those that are approved by EPA to use E15,” said ACE Senior Vice President and Market Development Director Ron Lamberty. “We wanted to show that ‘math’ to station owners, and we especially wanted to show the E15 market potential compared to premium and diesel – because those are the fuels oil companies usually push when station owners consider changing or expanding their fuel slate.”

“In the past few years, as oil companies have limited the fuel grades retailers can offer, and station owners change tanks over to premium or diesel, I feel like we haven’t done enough to make it clear how big the E15 market is.” Lamberty added, “We’ve told people about the E15 opportunity – probably thousands of times. Now we can show them. And if that dramatic difference doesn’t convince them to give E15 a shot, they don’t really want to know…”

Lamberty unveiled the animated video during the Western Petroleum Marketers Association EXPO in Las Vegas, Nevada.

ACE, E15, Ethanol, Retailers, Video

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