ACE Honors South Dakota Farmer Ron Alverson

Cindy Zimmerman

The person who received the American Coalition for Ethanol (ACE) Merle Anderson Award this year is one of the most humble geniuses you will ever meet.

Ron Alverson is a South Dakota farmer who helped found Dakota Ethanol and is considered to be the “carbon guru” of the ethanol industry. He was also a good friend of the man ACE’s most prestigious award is named after – the group’s “founding father” and first president. The Merle Anderson Award is presented annually to recognize an individual who has made distinguished and significant contributions to the advancement of the U.S. ethanol industry.

Alverson was a founding member (1987) and past president of SD Corn, served on the National Corn Growers Association board of directors, and is past president of the ACE board of directors. His leadership and generous enthusiasm for sharing knowledge about the vital role corn farming and ethanol play in helping reduce lifecycle greenhouse gas (GHG) emissions is unparalleled. He also inspires everyone in the corn and ethanol industries to care about the importance and economic value of “counting carbon” through his tireless advocacy and invention of educational tools, such as the “ACE” Carbon Intensity Calculators https://ethanol.org/calculate-ci/.

Listen to an interview with Ron below:
2023 ACE interview Ron Alverson, Dakota Ethanol 4:54

At the ACE Conference in Minneapolis last week, Alverson also shared some of his knowledge during a panel session on “Cultivating Progress: Climate-Smart Farming for Carbon Markets.” ACE’s Regional Conservation Partnership Program (RCPP) is working to validate the benefits farm-level practices have in reducing corn ethanol’s carbon footprint, enabling farmers and ethanol producers to benefit from clean fuel markets. Listen to his remarks and those of his fellow panelists involved with the project below.

Jonathon Lehman, Founder, Cultivating Conservation
2023 ACE Panel Jonathon Lehman, Founder, Cultivating Conservation 13:52
Brennan Lewis, Research Associate, South Dakota State University
2023 ACE Panel Brennan Lewis, South Dakota State University 12:29
Ron Alverson, ACE Board Member, Dakota Ethanol
2023 ACE Panel Ron Alverson, Dakota Ethanol 8:14

2023 ACE Conference photo album

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Syngenta Seeds and Sustainable Oils to Sell Camelina Seed

Cindy Zimmerman

Syngenta Seeds was pleased to make a big announcement the first day of Farm Progress Show Tuesday about a new agreement with Sustainable Oils, Inc. to sell Camelina sativa (camelina) seed – an ultra-low carbon oilseed crop that can be used as feedstock for sustainable aviation fuel and renewable fuels, and an ingredient for sustainable animal feed.

The collaboration reflects Syngenta’s strong commitment to enabling farmers to economically adopt regenerative practices around the world. Camelina can be planted on fallow land or land left idle between crop cycles. It is valued for its low water usage, quick maturity, and resilient yields. Camelina protects land like a cover crop providing a range of environmental benefits, including soil health and reduced greenhouse gas emissions.

“The collaboration of Syngenta Seeds and Sustainable Oils to sell camelina seed for use in sustainable aviation fuel, renewable diesel, and animal feed production is a significant step forward in promoting regenerative agriculture and renewable energy,” said Eric Boeck, Regional Director North America for Syngenta Seeds. “By supporting farmers and offering a sustainable source of fuel and animal feed, this partnership represents a win-win for producers, the environment, and the rural economy. It embodies our commitment to sustainability and our drive to bring innovative solutions to market.”

2023 Farm Progress Show interview with Eric Boeck, Syngenta Seeds 4:46

“We are very excited to partner with Syngenta Seeds on this collaboration to expand camelina’s growth in the U.S.,” Sustainable Oils President Mike Karst said. “Camelina represents a key feedstock for the production of renewable fuels and sustainable aviation fuel. It is a remarkable crop that protects like a cover crop and pays like a cash crop. We’re proud to be working with Syngenta to bring this opportunity to more farmers, improving our soil health and carbon storage while strengthening our nation’s domestic energy production in the process.”

2023 Farm Progress Show interview with Mike Karst, Sustainable Oils 5:11

Camelina seed will be sold through Syngenta’s AgriPro® dealer network in a vertical marketing model. Farmers who buy camelina seed will have a harvest purchase contract. There is no marketing risk for the farmer since there is already an integrated value chain model.

2023 Farm Progress Show Photo Album

Audio, aviation biofuels, biofuels, feedstocks, SAF, Syngenta

RFA Seeks Fair Treatment for Ethanol as SAF Feedstock

Cindy Zimmerman

The Renewable Fuels Association is making a major push this week to see American-made, lower-carbon ethanol supported as a feedstock for sustainable aviation fuel.

Agriculture Secretary Tom Vilsack’s visits this week to the Minnesota State Fair and the Farm Progress Show in Illinois provide the backdrop for RFA’s efforts, starting with a full-page advertisement in Monday’s St. Paul Pioneer Press welcoming him to “Ethanol Country.”

“Just last month, President Biden said: ‘Mark my words: In the next 20 years, farmers are going to be providing 95% of all the sustainable airline fuel,’” the ad states. “We agree. U.S. farmers and ethanol producers are up to the challenge … and we’re ready to deliver low-carbon aviation fuel. But to ensure sustainable aviation fuels really take off, we’ll need your continued help and support. Government standards for sustainable aviation fuel must be guided by sound science and current data, not outdated European schemes that disqualify America’s farmers from fulfilling the President’s vision.”

Jared Mullendore, Geoff Cooper, and Robert White with RFA at FPS

“Our efforts have been focused on, let’s use the best available science, let’s use the most current and scientifically robust modeling tools, and specifically we’re talking about the Department of Energy’s GREET model, to serve as the basis for evaluating different fuels when it comes to their eligibility for the SAF tax credit,” said RFA President and CEO Geoff Cooper at the Farm Progress Show on Tuesday where RFA’s 2022 Ford Escape Plug-in Hybrid Electric Vehicle (PHEV) is on display to demonstrate that ethanol (E85) and electricity can jointly power vehicles.

Cooper talks about why it is so important to get the modeling for SAF right in this interview.
2023 Farm Progress Show interview with RFA CEO Geoff Cooper 5:45

Audio, Ethanol, Ethanol News, Farm Progress Show, Renewable Fuels Association, RFA, SAF

ACE Conference Features Panel on IRA Biofuel Incentives

Cindy Zimmerman

Brian Werner, MN Bio-Fuels moderates panel with Donna Funk, Pinion; Mel Schwarz, Eide Bailly and Bradley Pederson, Christianson

The American Coalition for Ethanol (ACE) was holding its annual meeting in Omaha last year as Congress was passing the Inflation Reduction Act (IRA), and this year the ACE Conference in Minneapolis featured a panel of tax experts to discuss the opportunities in the legislation and the current unknowns making it challenging.

“Untangling and Maximizing IRA Biofuel Incentives” covered enhancements to Sections 45, 45Q, 45V, 48 and the new Section 45Z of the Internal Revenue Code, and shared insights on how to maximize on these incentives. MN Bio-Fuels Executive Director Brian Werner moderated the panel which featured:

Donna Funk, Principal-Partner, Pinion
2023 ACE IRA Panel, Donna Funk, Pinion 12:53
Mel Schwarz, Director of Legislative Affairs, Eide Bailly LLP
2023 ACE IRA Panel, Mel Schwarz, Eide Bailly 18:58
Bradley Pederson, Partner, Christianson PLLP
2023 ACE IRA Panel, Bradley Pederson, Christianson 20:19

“The Inflation Reduction Act is a monumental piece of legislation that has the ability to move the ethanol industry well into the future,” said Funk. “The 45Z tax credit is a huge opportunity every producer needs to understand how they can take advantage of.”

However, there are still some unknown details for producers seeking to take that opportunity, particularly when it comes to the 45Z since it is only a three year credit and it starts January 1, 2025. “So folks are making decisions…and will continue to make decisions and significant investments based on what they think or hope that credit is going to work without knowing for certain how much of the maximum dollar they’re going to get,” said Funk.

Listen to an interview with Funk here.
2023 ACE interview - Donna Funk, Pinion 9:44

2023 ACE Conference photo album

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ACE Hybrid Electric Flex Fuel Vehicle Update

Cindy Zimmerman

American Coalition for Ethanol members got an update on the ACE Hybrid Electric Flex Fuel (HEFF) vehicle during the annual conference last week, two years after the public unveiling at the 2021 annual conference, also held in Minneapolis.

ACE’s Chief Marketing Officer Ron Lamberty shared updated stats over the first two years of driving the 2019 Ford Fusion standard hybrid, made flex fuel capable courtesy of California E85 wholesaler Pearson Fuels and an eflexfuel.com conversion kit. Lamberty said ACE’s project “reminds everyone a battery isn’t a fuel source, it’s a fuel tank, and to reduce carbon pollution, you fill a vehicle’s ‘tank’ with the cleanest fuel available, which is currently E85.”

Ron Lamberty fills up HEFF with E85 during a road trip in June

Lamberty records miles driven, gallons, price and ethanol content of every fuel purchase, and calculating E10 use and cost, based on a benchmark set driving 4,500 miles on E10. After two years of running HEFF just under 25,000 miles on fuel averaging 71 percent ethanol, using EPA’s highest ethanol lifecycle GHG estimates and real-world mileage performance, the vehicle emitted approximately 202 grams of CO2 per mile – comparable to 2019 Tesla numbers when adjusted for actual range as opposed to showroom sticker values, and less than half the emissions from the gas version of the Fusion. The eflexfuel converter limited BTU mileage loss to 19.7 percent, and when using that figure versus the EPA original window sticker estimates for the car, and the lowest CI E85 currently available, ACE’s hybrid electric flex fuel vehicle would emit 108 grams of CO2 per mile. While fuel cost was not a primary concern of the HEFF project, the total fuel cost of the E71 used to date has been $2,500 compared to $2,719 for E10 regular gas, a savings of about 9/10ths of a cent per mile driven.

Lamberty provides the update in his conference remarks.
2023 ACE - Ron Lamberty, ACE, remarks 15:58

2023 ACE Conference photo album

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ACE Presents Grassroots Award to Lundebrek

Cindy Zimmerman

L-R: CVEC Board Chairman David Thompson, Jan Lundebrek, ACE CEO Brian Jennings

Jan Lundebrek, Chippewa Valley Ethanol Company (CVEC), has been a fixture at ethanol industry meetings for decades and this year the American Coalition for Ethanol recognized her unwavering dedication with the ACE Grassroots Award.

The strength of ACE is found within the collective grassroots, devoted individuals who often perform behind the scenes to advance the cause of ethanol. These “unsung heroes” of the U.S. ethanol industry and agriculture are recognized with the ACE Grassroots Award. Her enthusiastic leadership was instrumental in the formation of Chippewa Valley Agrafuels Cooperative (CVAC) and Chippewa Valley Ethanol Company (CVEC), one of the first ethanol plants in the state of Minnesota. Her extensive financial background helped ensure shares were sold to local farmers and loans were secured to build the plant. Her passion and commitment to rural America and the domestic ethanol industry has always been evident by your active participation in every ACE DC fly-in and during our conferences and board meetings.

Lundebrek became an ethanol pioneer back in the ’90s when she was a bank president and saw how farmers were struggling to make money growing corn, which led her to become one of the founding members of CVEC in 1996 where she continues to serve on the board. She has also served on the ACE board for many years, just stepping down this year to allow another CVEC board member Harmon Wilts to serve.

2023 ACE interview Jan Lundebrek, Chippewa Valley Ethanol Company 3:49

2023 ACE Conference photo album

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OPIS Analyst Gives Update to ACE

Cindy Zimmerman

Tom Kloza, Global Head of Energy Analysis with Oil Price Information Service (OPIS), was the keynote speaker last week at the 36th annual American Coalition for Ethanol conference.

Kloza’s keynote explored the current landscape of the liquid fuel market, and what to expect in the months ahead. “You’re going to hear a lot about very, very high crude prices and continued high refined products prices,” said Kloza. “I think high prices for gasoline are going to be a seasonal phenomenon but prices for diesel could go absolutely crazy parabolic this fall.”

Listen to his keynote address and brief interview below.
2023 ACE - Tom Kloza, OPIS, remarks 33:41
2023 ACE - Interview with Tom Kloza, OPIS 2:34

2023 ACE Conference photo album

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MN Ag Commissioner Supports Biofuels in Aviation

Cindy Zimmerman

MN Agriculture Commissioner Thom Petersen at 2022 Export Exchange

Minnesota Department of Agriculture Commissioner Thom Petersen recently sent a letter to Secretary of Agriculture Tom Vilsack advocating for the participation of agriculture and biofuel producers in decarbonizing the aviation sector. Petersen thanked the Secretary for his ongoing support of agriculture and recommended policymakers implement guidance that facilitates the industry’s participation in new markets, including sustainable aviation fuel (SAF).

The Minnesota Bio-Fuels Association (MN Bio-Fuels) commended both Commissioner Petersen and Secretary Vilsack’s efforts to ensure Minnesota farmers and ethanol producers can continue contributing towards the decarbonization of the U.S. transportation sector. “We urge regulators in Washington to adopt SAF tax credit guidance that supports Minnesotan farmers and biofuels,” said MN Bio-Fuels Executive Director Brian Werner.

The U.S. Department of the Treasury is deciding which additional carbon accounting model can be used for determining eligibility for SAF tax credits passed in the Inflation Reduction Act. The Commissioner makes clear that adopting the U.S. Department of Energy’s Argonne GREET model would be an appropriate choice, given its use by the Treasury Department for non-aviation fuel tax credits, and ability to incorporate updated science and data from federal agencies.

The forthcoming decision by the Biden Administration regarding the method and model used to measure carbon intensity holds significant implications for American farmers. “The key question remains whether U.S. sustainable aviation fuel producers will be allowed to use a lifecycle greenhouse gas (GHG) emissions accounting methodology based on the well-established Argonne GREET model developed by the U.S. Department of Energy, which is used with standards for other biofuels, or whether producers can only use a policy framework approved by an international body (ICAO) under the CORSIA program. The GREET methodology is tailored to U.S. circumstances and would permit some row crops to be utilized for SAF under both the 40B and 45Z tax credits, whereas the CORSIA methodology would deter their use,” Petersen writes.

Furthermore, Commissioner Petersen emphasizes Minnesota’s commitment to the Biden Administration’s SAF Grand Challenge, aiming to produce 3 billion gallons of sustainable aviation fuel by 2030: “Expanding SAF production not only creates jobs in Minnesota farming communities, but also in construction and equipment design for cutting-edge biorefineries, biorefineries and infrastructure operations, and scientific research on bioenergy and biofuels. But we cannot contribute to the SAF Grand Challenge if regulatory policies restrict the use of crop-based biofuels and disincentivize participation from farmers by adopting a less dynamic carbon intensity model.”

As the third-largest producer of corn and the fifth-largest producer of ethanol in the U.S., Minnesota is committed to constantly innovating to improve yields, find new markets, and support American energy security.

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF

Sheetz Offers End of Summer E15 Savings

Cindy Zimmerman

Sheetz is helping to provide relief for consumers during the dog days of summer by offering Unleaded 88 (E15 or 15% ethanol blended gasoline) for just $2.99 a gallon through the remainder of August. The national average price for regular gasoline right now is $3.84 per gallon, according to AAA.

Renewable Fuels Association President and CEO Geoff Cooper welcomed the news last week. “Summer may be ending, but American families are still on the road, and we thank Sheetz for this innovative effort to promote ethanol’s great cost-saving benefits,” said Cooper. “Ethanol has been selling for about a dollar per gallon less than gasoline this summer, at wholesale terminals where fuel is blended. We applaud Sheetz for passing along the benefits of E15’s lower cost to consumers—and thereby supporting renewable fuels and the rural economy.”

Sheetz is based in Altoona, Pennsylvania with over 700 stores located in Central and Western Pennsylvania, West Virginia, Maryland, Ohio, Virginia, and North Carolina, with plans to expand into Michigan.

E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

ACE Elects Board of Directors During Annual Meeting

Cindy Zimmerman

The American Coalition for Ethanol (ACE) announced the re-election of several board members and the election of two new members to the organization’s board of directors during its annual business meeting last week prior to ACE’s 36th annual conference in Minneapolis, Minnesota.

Re-elected to the board of directors for three-year terms:

Badger State Ethanol – Represented by David Kolsrud
ICM, Inc – Represented by Trevor Hinz
Mid Missouri Energy– Represented by Chris Wilson
Nebraska Ethanol Board – Represented by Reid Wagner

Harmon Wilts, representing Chippewa Valley Ethanol, was elected to take the seat previously held by Jan Lundebrek, and Dave Ellens, representing South Dakota Corn Growers Association, was elected as a new member to the board of directors for a three-year term.

Listen to an interview with Harmon Wilts where he talks about ACE honoring Jan Lundebrek this year with the Grassroots Award, and how he is looking forward to following her in serving on the board.
2023 ACE interview Harmon Wilts, Chippewa Valley Ethanol Company 4:14

ACE, ACE Ethanol Conference, Ethanol, Ethanol News