Panelists Discuss E15 Revolution, Global Markets

Joanna Schroeder

Panelists discussed the “E15 Revolution” during the Growth Energy Leadership Conference held in Orlando this week. The retailer discussion focused on their efforts to help grow the consumer availability of E15 across the country.

Todd GarnerPanelists included Jim Pirolli, VP Fuels for Kum-N-Go; Mike Lorenz, Executive VP of Petroleum Supply; and Todd Garner, CEO of Protec Fuels.

When discussing the changing marketplace, Lorenz commented that initial sales have exceeded expectations, even before kicking off a marketing campaign around E15. “The consumers are finding it on their own, and sales are increasing.” Pirolli seconded this statement by adding, “When it comes to consumer choice, they’re going to go with a higher performance, better value product.”

To learn more about how retailers are marketing E15, listen to Chuck Zimmerman’s interview with Protec’s Todd Garner, who he saw on a similar panel at the National Ethanol Conference the week before: Interview with Todd Garner, Protec

Another interesting panel discussion took place around “Ethanol on the World Stage”. The discussion focused on the important role that ethanol plays in the global marketplace and the need to take advantage of every opportunity to expand ethanol utilization worldwide. Panelists discussed the importance of trade missions to identify new markets and expand existing opportunities. Also discussed were increased opportunities to export dried distillers grains (DDGs).

The panel was moderated by Ray Defenbaugh, CEO & Chairman of Big River Resources, LLC. Panelists included Paul Trupo, Director of the USDA FAS Global Policy Analysis Division; Joel Williams, Manager of Ethanol Trading at ADM; Mark Marquis, CEO of Marquis Energy, LLC; Amit Sachdev, South Asia Representative (India Bangladesh and Sri Lanka) at the U.S. Grains Council; and Junyang Jiang, Deputy Director of the U.S. Grains Council China World Office.

During the discussion, Ray Defenbaugh stressed the importance of the partnership with the U.S Grains Council, as it is helping create new opportunities across the globe for exports. During the panel, it was announced by Mark Marquis, a board member of Growth Energy, that Growth Energy has set a goal to export at least 2 billion gallons of fuel ethanol by 2022, calling the program, “At Least 2 by 22.”

biofuels, Distillers Grains, E15, Ethanol, Exports, Growth Energy

Goat’s Guts Lead to Better Biofuels

Joanna Schroeder

New research finds that some day your gas tanks could be filled up by horses, sheep and goat’s guts. Researchers looked at how the anaerobic gut fungi, as compared to engineered fungi, were able to convert plant material into sugars that could be converted into advanced biofuels and other biobased materials.

Fungi found in the guts of goats, horses and sheep help them digest stubborn plant material. A team of researchers report in the journal Science that these fungi could potentially lead to cheaper biofuel and bio-based products. Professor of chemical engineering at the University of California, Santa Barbara Michelle O’Malley, was the lead author of the paper. She explained, “Nature has engineered these fungi to have what seems to be the world’s largest repertoire of enzymes that break down biomass.”

Fungi found in the guts of goats, horses and sheep help them digest stubborn plant material. A team of researchers report in the journal Science that these fungi could potentially lead to cheaper biofuel and bio-based products. Image courtesy of Daniele Faieta/Flickr

Fungi found in the guts of goats, horses and sheep help them digest stubborn plant material. A team of researchers report in the journal Science that these fungi could potentially lead to cheaper biofuel and bio-based products. Image courtesy of Daniele Faieta/Flickr

These enzymes — tools made of protein — work together to break down stubborn plant material. The researchers found that the fungi adapt their enzymes to wood, grass, agricultural waste, or whatever they were fed. The findings suggest that gut fungi could be modified so the produce better enzymes that will outperform even the best ones on the market today. With a more effective way to break down biomass, it should led to the development of less expensive biofuels and bioproducts.

O’Malley and her colleagues knew the fungi’s hyphae excrete proteins, or enzymes, break down plant material. The researchers understood that like tools in a toolbox, the more diverse the enzymes, the better the fungi can take apart plants and turn them into food. So the goal was to help develop this fungi toolbox for the bioindustry to use to better break down biomass.

“Despite their fascinating biology, anaerobic gut fungi can be difficult to isolate and study,” said Scott Baker, EMSL’s science theme lead for Biosystem Dynamics and Design, one of the agencies that collaboratively participated in the research. “By utilizing the cutting-edge scientific capabilities at EMSL and JGI, O’Malley showed how the huge catalog of anaerobic gut fungi enzymes could advance biofuel production.”

advanced biofuels, biochemicals, biomass, biomaterials, enzymes, Research

$3.50 May Be New ‘Corn Norm’

Lizzy Schultz

Central_Wisconsin_Ag_Services_LogoThe impact of corn prices varies between producers in different divisions of agriculture, with some producers benefiting from higher prices, and some benefiting from lower prices. Many factors seem to demonstrate that the new long-term “normal” for corn prices may be $3.50 per bushel, and Cody Heller, CEO of Central Wisconsin Ag Services (CWAS), has offered his insight into the cause of the record prices seen in 2012 and why it will be difficult for the markets to sustain prices that high over the next five to ten years.

It was increased demand for corn both for ethanol and exports, combined with a severe drought, that drove prices up in 2012. According to Heller’s report, past high prices and several good yields have led to global stocks of corn, soybeans, and wheat reaching record highs. The changing market for ethanol, however, may seriously impact the resulting demand for those record high supplies. According to USDA, we will not see an increased demand for US corn for ethanol higher than 0-1% from 2016 to 2025. On the global side, China is in a well-documented recession, and the country is forecast to import its lowest level of corn since 2009.

Heller says in order for corn prices to move higher, something would have to happen on the supply side. “This will come from a drought, governmental controls, or a stark increase in global growth and demand to reset global supply,” he says. “The catch-22 here is due to better genetics and better technology, corn yields (with the exception of 2012) have been growing at a pace of about 2-3 bu. per acre annually.”

Read the full report.

Ag group, biofuels, corn, Ethanol, International, RFS

Minnesota Biofuels Promotes E15 to Drivers

Cindy Zimmerman

mn-bio-e15The Minnesota Bio-Fuels Association (MBA) spent an hour Tuesday at a retail station in St. Paul rewarding drivers who fueled up with E15.

The association joined with a local radio station at St Paul’s Tobasi Stop Minnoco to educate drivers and present those who switched to E15 with prizes such as $25 in cash, passes to the Minnesota Zoo and Wild Mountain. The retail station is one of the newest in the Twin Cities to offer E15. There are currently 17 stations in the metro that offer E15.

MBA executive director Tim Rudnicki says the event is the third time MBA has partnered with KS95 FM to educate and increase awareness of the benefits of using E15. “This is the third consecutive month where we have gone to a station with KS95 to directly engage with drivers and educate them on the benefits of using E15. Drivers are interested in using a fuel that has a high octane, is cheaper than regular unleaded gas, better for the environment and beneficial to Minnesota’s economy,” said Rudnicki.

In 2015, a record 3.09 million gallons of E15 was sold in Minnesota, nearly 12 times the amount sold in 2014. The volume recorded in December last was 527,574 gallons, a new monthly record and represented the second straight month in 2015 when E15 monthly sales breached 500,000 gallons.

E15, Ethanol, Ethanol News, Promotion

Tom Buis Delivers the “CEO Report”

Joanna Schroeder

Growth Energy Co-Chair Tom Buis delivered his “CEO Report” yesterday during the Leadership Conference in Orlando, Florida. During his remarks, Buis said, “Last year was an interesting year, we increased exports, had another great corn crop and defeated every single attempt to repeal or reform the RFS.”

The Growth Energy team.

The Growth Energy team.

Buis segued into how the ethanol industry stepped up to the plate to help change the flight of the ball on the renewable volume obligations (RVO’s), or how much biofuels are required to be blended into the nation’s fuel supply. He noted that while the rules remain flawed, it was better than the proposed rules and “the blend wall was finally cracked this year”. In addition he outlined how supporting the Renewable Fuel Standard (#RFS) along with expanding market access to E15 will continue to be top priorities for 2016.

“We need to grab the bull by the horns and discuss all the good work that this industry does, including the environmental benefits, reducing our dependence on foreign oil and all the good jobs we create across the nation, while helping bring choice to American consumers,” continued Buis. Who added in regards to their successes in working directly with retailers to bring E15 to the market, “Our work showed that we were not going to let others define us, we must share our story on how we are tomorrow’s fuel,” noting that “fossil fuels will go the way of the steamboat, horse and buggy and the blimp. Anytime we are compared to the oil industry, we win.”

Buis concluded his remarks by stressing, “I think as an industry, there is no industry that is better. With our knowledge, passion and engagement, we’re going to win this fight, but it’s going to take effort. Effort equals results. We will not sit back, we will roll up our sleeves and we will win.”

Listen to Chuck’s interview with Tom Buis following his CEO Report: Interview with Tom Buis, Growth Energy co-chair

Audio, biofuels, E15, Ethanol, Growth Energy

Auto Industry Veteran Joins RFA

Cindy Zimmerman

A veteran auto industry specialist has joined the Renewable Fuels Association (RFA) as the organization’s new Technical Director.

rfa-kingTracey King, who spent 17 years as a technical specialist with Chrysler, will serve as the RFA’s top liaison to the automakers and will focus on forging the path to future high octane fuels and optimized spark ignition engines.

Previously, King worked in research and development at both Nissan and General Motors and most recently she was with Haltermann Solutions, a manufacturer of test and reference fuels. She also has extensive experience with ASTM and other standards developing organizations.

“Tracey brings an unrivaled wealth of knowledge and experience to the RFA,” said Bob Dinneen, RFA President and CEO. “Tracey’s background in the automotive industry and experience in developing certification fuels position her well to help chart the course toward an ethanol-based high octane fuel that will improve engine efficiency and reduce emissions.”

King will be based in Detroit and will be part of RFA’s research and technical team. “I am excited to join the RFA staff and look forward to working closely with the membership, automakers, regulators, and other stakeholders to help define the future for ethanol and optimized engines,” King said. “RFA has always been viewed as an effective science-based advocate for ethanol, and I am eager to contribute to the advancement of the organization’s technical objectives.”

Ethanol, Ethanol News, RFA

BioFuelNet Heads to School

Joanna Schroeder

Infographics67BioFuelNet is heading back to school to get young men and women excited about biofuels. The organization is partnering with Talk Energy Week to participate in panel discussions at schools in eight Canadian cities. The discussions, targeted at grades 11 and 12 and reaching more than 1800 students, will include information on how to develop sustainable advanced biofuels. Each participating class will be sent a series of educational infographics illustrating various types of biofuels, where they come from and how they are made.

“As our use of fossil fuels is one of the major contributors to climate change, rethinking the energy sector will be a crucial undertaking for the next generation of decision-makers – many of which are currently in high school and beginning to learn about alternative energy solutions,” said Dr. Donald L. Smith, CEO & Scientific Director of BioFuelNet.

In addition, BioFuelNet has released an animated short film highlighting how Canadian scientists and students are working together through BioFuelNet to solve global environmental issues.

advanced biofuels, Biodiesel, Education, Ethanol, Video

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1A new paper from CAST looks at how to prevent invasive species from taking over marginal lands converted to grow crops for bioenergy. The paper shows that the risk of invasion can most effectively be prevented through a life-cycle approach that adopts appropriate scientific and policy tools at each step in the production process: from crop selection to field production, during feedstock transport and storage, and during decommissioning.
  • Clariant, in cooperation with Werner & Mertz, the producer of Frosch® cleaning products in Germany, has launched a project which extends the application of bio-ethanol based on agricultural residues such as straw to cleaning agents. Since the beginning of the year Werner & Mertz is using sunliquid cellulosic ethanol for its Frosch Bio-Spirit Multisurface-Cleaner.
  • Duckweed USA is investing $4 million in a biodiesel facility that will produce fuel from duckweed grown at the wastewater treatment plant in Sparta, Georgia. Equipment is set to arrive on site in the next 45 days with production to begin this summer.
  • A joint venture project between Chempolis Ltd and Numaligarh Refinery Limited (NRL) has received approval from NRL’s board.  The parties will jointly build a biorefinery using Chempolis formicobio technology in North East India (Assam) for producing bioethanol from bamboo with co-production of furfural and acetic acid from locally available bamboo.
Bioenergy Bytes

Growth Energy Holds 7th Leadership Conference

Cindy Zimmerman

growth-throttleEthanol industry organization Growth Energy is holding its seventh annual Executive Leadership Conference in Orlando this week.

After a weekend at the Daytona 500 to highlight American Ethanol, the meeting kicked off Monday morning with the Chairman’s Report from Jeff Broin, co-chair of Growth Energy’s Board of Directors. Broin noted that the industry had a record year producing a product that represents a growing share of the gasoline market.

growth-broin1“This is a long-term game, and we will not give up,” said Broin. “Our industry is poised to succeed, because we are doing the right thing for our nation and generations to come. We will continue to go full throttle to produce a biofuel that reduces toxic air emissions while improving performance for future vehicles.”

The growth of E15 in the marketplace was a big focus of the meeting on Monday, after revving up with the NASCAR Daytona weekend. “We’ve seen tremendous increases in consumer acceptance among NASCAR fans … Once they see that it’s a higher performance fuel, a higher octane fuel, people use it,” said Broin during an interview at the meeting. “NASCAR’s been very successful at showing ethanol is a great fuel.”

The American Ethanol partnership between NASCAR, Growth Energy, New Holland, and the National Corn Growers Association is now in its sixth year and will hit the 10 million mile mark this year running on running on 15% ethanol blended Sunoco Green E15.

Listen to Broin’s interview here: Interview with Jeff Broin, Growth Energy co-chair

American Ethanol, Audio, E15, Ethanol, Growth Energy

DOC Partners With NEC to Increase Ethanol Exports

Joanna Schroeder

Despite low crude oil prices, 2015 was still a robust export year for the ethanol industry according to Kenneth Hyatt, deputy under secretary for International Trade with the U.S. Department of Commerce (DOC). The DOC partnered with the Renewable Fuels Association, the host of the 21st Annual National Ethanol Conference (#RFANEC) where delegates from several countries were on hand to discuss export opportunities.

nec16-hyattHyatt said his organization has four key areas of focus in which they can assist the ethanol industry: promotion of U.S. exports; aid in opening global markets; assist investors in increasing direct foreign investment; and enforce U.S. trade laws and international trade agreements. However, the focus of his presentation was on exports.

“I would think about us as doing anything that would help you figure out whether to export, figure out to where to export. If you want to find a buyer in one of those countries, to help find a buyer in those countries. If it’s to help find a distributor in a country, we help find that distributor. It can also be if you have a problem in a country,” remarked Hyatt.

Hyatt also gave an overview on the top destinations of the export markets (Canada, Brazil and Phillipines), and also discussed the updates on the horizon of its Renewable Fuels Top Markets Report 2016. It covers both ethanol and biomass woodpellets and includes case studies, contact information and ranks them on strength of prospects.

Listen to Kenneth Hyatt’s presentation here: Kenneth Hyatt's Presentation

Kenneth Hyatt’s PowerPoint presentation

2016 National Ethanol Conference Photo Album

Audio, biofuels, biomass, Ethanol, Exports, National Ethanol Conference, RFA