Study Shows Ethanol’s Positive Economic Impact

John Davis

neethanolboardA new study from the University of Nebraska-Lincoln shows Nebraska’s ethanol production capacity growth over the last 20 years is tenfold. This news release from the Nebraska Ethanol Board says the “Economic Impacts of the Ethanol Industry in Nebraska” also reveals ethanol in the state is producing 2,077 million gallons per year with 1,301 full-time employees at 24 facilities, and with the green fuel and dried distillers grain with solubles (DDGS) from the ethanol production, it is putting $4 billion to more than $6.6 billion into the economy.

“The quantifiable economic impact of ethanol production on the Nebraska economy is clear,” said Paul Kenney, chairman of the Nebraska Ethanol Board. “But we should also understand the enormous savings in health and environmental costs associated with displacing toxic petroleum products with cleaner burning biofuels like ethanol. Choosing ethanol fuels brings additional cost savings in terms of our health.”

Nebraska’s large ethanol production results in 96 percent (1.805 billion gallons) being shipped out of state and makes Nebraska one of the largest exporters of bioenergy. In addition, 58 percent of DDGS produced in 2014 were shipped out of state. These out-of-state shipments result in a net positive for the state and represent a direct economic impact by bringing new money into the state economy.

The study noted that Nebraska’s ethanol industry could be affected by emerging trends and at least four are worth watching – the recovery of carbon dioxide (CO2), the extraction of corn oil, and world export markets for both ethanol and DDGS.

Many of these upcoming trends will be discussed later this week during the annual Ethanol 2015: Emerging Issues Forum in Omaha April 16-17.

Ag group, Agribusiness, Ethanol, Ethanol News, Research, University

House E15 Waiver Bill Introduced

Cindy Zimmerman

adrian-smithCongressman Adrian Smith (R-NE) has introduced legislation to expand the existing waiver of Environmental Protection Agency (EPA) regulations regarding Reid Vapor Pressure (RVP) of motor vehicle fuel to include 15% ethanol blended gasoline (E15) in addition to E10.

EPA regulations currently curtail retail sales of E15 during the summer months. “Ethanol provides consumers in Nebraska and across America with a competitive, clean, domestically-produced alternative,” Smith said. “However, burdensome EPA regulations are restricting consumers’ options at the fuel pump.

EPA granted a waiver for E10 in 1990 and Smith’s bill would extend this waiver to also include E15.

“Though E10 received a waiver decades ago, the same regulatory relief has not yet been extended to E15,” said Smith. “We must pursue an all-of-the-above energy policy, which includes ethanol and other renewable fuels, by reducing red tape and encouraging innovation in the energy marketplace.”

“We applaud this effort by Congressman Smith to establish greater consumer choice and to remove a major hurdle preventing consumers the opportunity to purchase higher blends such as E15,” said Growth Energy CEO Tom Buis. “We are hopeful that Congressman Smith’s legislative efforts are successful in granting this much needed waiver to overcome the single largest regulatory hurdle to ensuring consumers have access to higher blends such as E15.”

The legislation is similar to a bill introduced earlier this month in the Senate by Sens. Chuck Grassley (R-IA) and Rand Paul (R-KY).

E15, Ethanol, Ethanol News, Government, Growth Energy

Iowa Gov Branstad to Address BIO World Congress

John Davis

biologoLongtime advocate for biobased fuels Iowa Governor Terry Branstad will speak at this summer’s Biotechnology Industry Organization (BIO) World Congress in Montreal, Canada. This news release from BIO says Branstad is slated to speak during the July 20 plenary session titled, “State and Regional Approaches to Developing the Biobased Economy.”

“Governor Terry Branstad is a true champion of our industry and the creation of a national biobased economy. He has voiced support for the federal Renewable Fuel Standard, advanced policies at the state level for a stronger rural bioeconomy and supported more research to advance second-generation biofuels,” said Jim Greenwood, President and CEO of the Biotechnology Industry Organization (BIO). “BIO could not imagine a better person than Governor Branstad to kick off the world’s largest conference on industrial biotechnology.”

“Governor Branstad has regularly provided leadership in articulating the importance of the biotechnology industry to our state,” said Joe Hrdlicka, executive director, Iowa Biotech Association. “We’re thrilled he will have the opportunity to share Iowa’s vision at such a critical industry event with an international audience.”

“Iowa is the nation’s premier leader in the renewable fuels industry and is capitalizing on its success in agriculture and its research capabilities in plant, animal and human biosciences to build a thriving biosciences industry within the state,” said Debi Durham, director of the Iowa Economic Development Authority. “Iowa’s bioscience enterprises are discovering the innovations that will spur future economic growth and create jobs, improving the quality of life for people on a global scale — Governor Branstad is poised to tell our story.”

More information on the conference is available at www.bio.org/worldcongress.

Ag group, BIO, biofuels, Biotech

Motor Clubs Make Pitch for E15

John Davis

ace-flyin-15-hammondThe management of both the Association Motor Club Marketing (AMCM) and the Travelers Motor Club are making their pitch for the higher blend of ethanol known as E15. The American Coalition for Ethanol quotes AMCM Owner Gene Hammond from a blog post he wrote shortly after taking part on the “Biofuels Beltway March” fly-in (and speaking with Domestic Fuel), where he was part of ethanol advocates who visited 17 congressional offices in Washington, D.C.

Hammond writes: “That E15 hasn’t caused any damage to cars is no surprise to us, because during our entire time in the motor club business, we’ve never had a complaint about any blend of ethanol in gasoline, period.”

“But the critics and the E15 ghost stories haven’t gone away, so we did our part recently by meeting with Members of Congress about what we’ve seen, and more importantly what we haven’t seen, from the usage of E15 by our motor club members. If the anti-E15 predictions and warnings Congress has heard for the last two years were true, the people who had those problems would be well known to you by now.

But the charges aren’t true. We let Congress know how safe this fuel is. We don’t think motorists should be forced to use any fuel, but what the Renewable Fuel Standard (RFS) does is give every driver in the United States the option to buy a quality American made product like the E15 fuel blend if they choose.

More fuel choices mean more competition and that means our members save at the pump.”

Hammond’s entire blog post is available here.

ACE, E15, Ethanol, Ethanol News, Government

Oakland Biodiesel Plant Gets $3.4 Million State Grant

John Davis

Viridis1A California biodiesel maker is getting a $3.4 million grant to build and operate a refinery in Oakland. Viridis Fuels, LLC, is the benefactor of the California Energy Commission grant that will help the company turn fats, oils and greases into 20 million gallons of biodiesel each year.

The Viridis website says the company will use state-of-the-art technology that delivers 100 percent yields from the feedstock with virtually no contaminated waste water discharge.

The selected refining process, which includes degumming, bleaching, cold soak filtration, transesterification and esterification, can process even the most problematic multiple feedstocks to achieve an ASTM 6751 Grade finished product, in a plant with BQ-9000 Certification, that satisfies and exceeds all state and federal quality standards.

Highlights of the technology process

– Waterless patented resin technology, proven through operation of over 34 plants worldwide, virtually eliminates the need to handle back-end contaminated water.
– Multi-feedstock capability converts even the most problematic waste feedstocks and eliminates dependence on the availability and susceptibility to price changes of a single source of raw material.
– Sulfur and heavy metals removal which had been a serious challenge for earlier processing technologies.
– 100% Free Fatty Acid (FFA) conversion with no stripping so that no raw material is lost in processing.

The plant will use tallow; waste fats, oils and grease (FOG), yellow grease, virgin oils as needed and appropriate and purpose-grown crops and algae as they develop.

to construct and operate a biodiesel production facility in Oakland. This facility will produce up to 20 million gallons of biodiesel annually from fats, oils and grease.

Biodiesel

Wilks Equipment Backs New Biodiesel Blend Method

John Davis

infracal-2-and-infraspec-for-biofuels1Measuring the amount of biodiesel have been limited to Methods D7371 and EN 14078 which required FTIR spectrometers, putting expensive equipment in precarious positions either on a loading dock or in a truck. That’s why maker of analytical equipment, including biodiesel analyzers, Wilks is now backing the move to the ASTM D7861 biodiesel blend method and has the hardware that fits the bill.

Filter-based infrared analyzers, such as the Wilks InfraCal 2 Biodiesel Blend Analyzer and InfraSpec VFA-IR Spectrometer, are rugged, compact and much better suited for the environment where fuels are blended. Therefore, Wilks championed the new ASTM D7861 method which provides a fast, easy-to-use and inexpensive infrared method for measuring biodiesel (FAME-Fatty Acid Methyl Esters) in biodiesel.

The InfraSpec VFA-IR Spectrometer is a spectral range analyzer which contains a linear variable filter and a detector array covering the wavelength range of 5.4-10.8 μm (1850-925 cm-1) making it compliant with the instrument requirements of ASTM D7861. The InfraSpec Spectrometer can not only measure biodiesel in diesel, but also ethanol in gasoline and water in ethanol. It is a compact, portable instrument with a simplified PC interface that provides non-technical personnel with the ability to make measurements on-site at the blending terminal, fuel pump or laboratory where an ASTM method is required. The PC interface also provides data storage and transmission and the Wavemetrics Igor Pro package gives more sophisticated users the option to go beyond the simplified user interface for full spectral analyses. The test takes less than a minute and the measurement range is 0 to 100% with an accuracy of +/- 0.20 %.

Wilks also offers the InfraCal 2 Biodiesel Blend Analyzer, a rugged, compact, fixed-filter infrared analyzer. While is does not comply with D7861, results compare with D7371, EN 14078, and the new D7861 biodiesel blend methods.

Biodiesel

EPA Sets Timeline for RFS Volume Requirements

Cindy Zimmerman

epa-150Under a court settlement with the oil industry, the Environmental Protection Agency today announced they will propose the 2015 Renewable Fuel Standard (RFS) renewable volume obligations by June 1, 2015, and issue the final 2014 and 2015 RFS blending targets by November 30, 2015. In addition, EPA will also release the proposed 2016 RFS RVOs by June 1 and the 2016 numbers will be finalized by Nov. 30.

The biofuels industry reacted immediately to the announcement. “This consent agreement is a good start,” said Renewable Fuels Association president and CEO Bob Dinneen. “We are particularly pleased that the Agency has committed to addressing the 2016 RVO in the same time frame even though that is outside the scope of the consent agreement.”

“By taking this action, they are ensuring that the RFS is back on a path to certainty for the biofuels industry, providing the necessary guidance for the industry to continue to thrive and advance alternative fuel options for American consumers,” Growth Energy CEO Tom Buis said.

“ACE has consistently said it is much more important for EPA to get the RFS done right than it is for them to get the RFS done quickly, and that bears repeating given today’s announcement that the RFS will be getting back on track for implementation,” said American Coalition for Ethanol (ACE) Executive VP Brian Jennings.

National Biodiesel Board is pleased the EPA announcement said they would “re-propose volume requirements for 2014, by June 1, that reflect the volumes of renewable fuel that were actually used in 2014.”

“The volumes for Biomass-based Diesel in 2014 were approximately 1.75 billion gallons so EPA reaffirming its commitment to “actual use” appears to be a step in the right direction,” said NBB Vice President of Federal Affairs Anne Steckel.

Advanced Ethanol Council (AEC) executive director Brooke Coleman says the announcement sends a good signal to the advanced biofuels industry. “Now that we have a better idea of when it will happen, we look forward to working with EPA to make sure that the new RFS proposal supports the commercial deployment of advanced biofuels as called for by Congress.”

EPA intends to issue a Federal Register Notice allowing the public an opportunity to comment on the proposed consent decree.

ACE, advanced biofuels, AEC, Biodiesel, biofuels, Ethanol, Ethanol News, Growth Energy, NBB, RFA, RFS

What’s Your Favorite Alternative Fuel?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Will you order an Apple Watch on April 10 or buy a Samsung S6 smartphone?”

The crowd has spoken and many who took our most recent ZimmPoll feel they have no use for either. Honestly, no one needs either one, but I sure want an Apple Watch. I am still in the minority though. The #AgNerds have spoken and the Samsung S6 has won. It will be exciting to see how the products make it in the real world or let’s say the farm world.

Here are the poll results:

  • Apple Watch – 17%
  • Samsung S6 – 32%
  • Both – 3%
  • No use for either one – 48%

Our new ZimmPoll is now live and asks the question, What is your favorite alternative fuel (to gasoline)?

Alternative fuels are all the rage and/or future necessity. The agriculture community seems to be torn as to which is the best for the industry. We want to know your opinion. If gasoline wasn’t an option, which alternative fuel would be your choice? Biodiesel, ethanol, propane, etc?

ZimmPoll

Aemetis to Sell Biodiesel to India Tourism Buses

John Davis

aemetislogo1California-based Aemetis, Inc. will start selling biodiesel to travel bus operators in India’s tourism industry. This company news release says a move by India government that allows biodiesel manufacturers such as Aemetis to sell to customers directly helped make the deal possible.

According to a study carried out by Nielsen Research for the Department of Petroleum Planning and Analysis, Ministry of Petroleum and Natural Gas, Government of India, buses consume about 10% of the annual diesel used. Diesel use by buses equates to 2.5 billion gallons of yearly consumption in India, of which more than 1 billion gallons is consumed in Southern and Western India providing a potential source of significant demand for the Aemetis biodiesel plant in Andhra Pradesh.

“Prime Minister Modi and the India Government are actively promoting biodiesel as an alternative to petroleum diesel to reduce more than $120 billion per year of crude oil imports,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. “The lower cost of biodiesel compared to diesel is only one of several important drivers for the growth in the biodiesel market. By using biodiesel from Aemetis, travel operators are supporting improved air quality, expanded domestic jobs and reduced operating costs.”

“We have recently begun deliveries to travel bus operators in Southern and Western India,” said Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The travel and tourism industry contributed about 6.2% of India’s GDP in 2013 and is forecasted to rise by 7% per year through 2024. The travel and tourism industry supports about 22 million jobs and helps India generate meaningful foreign exchange reserves.”

Aemetis owns and operates a biodiesel refinery able to produce about 50 million gallons per year on the East Coast of India.

Biodiesel, International

ARF Challenges Confirmed Candidates

Cindy Zimmerman

ARF-LogoThe America’s Renewable Future campaign is challenging the two confirmed Republican presidential candidates to take a stand for renewable fuels.

In a letter to Sen. Ted Cruz (R-TX), who has been forthcoming about his opposition to the Renewable Fuel Standard (RFS), ARF questioned his recent reported comment that the oil industry “doesn’t get subsidized.” The letter, with the message that “Oil Subsidies Are Real,” details $165 billion in subsidies and tax breaks the oil industry is poised to receive over the next ten years.

With Sen. Rand Paul (R-KY) officially declaring his candidacy this week, ARF recognized his introduction of the Fuel Choice and Deregulation Act as “a step in the right direction” but urged him to commit to supporting the Renewable Fuel Standard. “Sen. Paul has an opportunity to stand up for a commonsense, bipartisan policy that provides access to the marketplace for a clean, domestic alternative to foreign oil and we hope that he will,” said the campaign in a statement.

Another potential presidential candidate, Donald Trump, was in Iowa on Wednesday and took the time to meet with ARF co-chair Annette Sweeney “to discuss the importance of the ‪#‎RFS‬ to America and our rural communities.”

America’s Renewable Future is an Iowa-based coalition formed with the goal of educating presidential candidates about the RFS and urging their support.

Ethanol, Ethanol News, Government, RFS