Ethanol Exports Important to Industry

Cindy Zimmerman

nec14-patriot-juddExports of both ethanol and the animal feed co-product distillers dried grains (DDGs) are important for Patriot Renewable Fuels, located near the Quad Cities and not far from Chicago.

Patriot commodity manager Judd Hulting attended a trade mission with the U.S. Department of Commerce and the Renewable Fuels Association (RFA) to Brazil last fall. “It’s just another outlet for our 200 or so investors,” he says. “We are actually close to 100% dependent on the export market for our distillers grains so branching out both in the ethanol and the DDG market is very important for our profitability going ahead.” Interview with Judd Hulting, Patriot Renewable Fuels

nec14-hubbardRFA General Counsel Ed Hubbard led that mission to Brazil last fall and talked about it during a panel at the National Ethanol Conference on Expanding the Global Marketplace for U.S. Ethanol.

“We had a very successful mission opening new business for individuals that participated,” said Hubbard. “We are the global leader in ethanol production, producing 57% of the world’s output.”

Hubbard noted that U.S. ethanol exports surged to 82.4 million gallons in November, with large volumes finding their way into new or emerging markets such as China and India, as well as the Philippines, Tunisia, Panama, and Mexico. Ethanol exports totaled 621.5 million gallons in 2013, the third-highest annual total on record. Comments from RFA General Counsel Ed Hubbard

Also on the export panel were:

Eco-Energy CEO Chad Martin – Comments from Chad Martin, Eco-Energy DATAGRO Consulting president Plinio Nastari – Comments from Plinio Nastari, DATAGRO U.S. Department of Commerce trade specialist Cora Dickson – Comments from Cora Dickson, US Commerce Dept.

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Audio, Ethanol News, Exports, National Ethanol Conference, Patriot Renewable Fuels, RFA, RFS

NEC Global Ethanol Conversation

Cindy Zimmerman

nec14-globalIt is always interesting to hear the perspectives of different countries during the National Ethanol Conference global panel and to see the similarities as well as differences in viewpoint.

The panel was moderated by Bliss Baker, Global Renewable Fuels Alliance, and included Renewable Fuels Association president Bob Dinneen, as well as (from left to right): Joel Velasco, Senior Advisor to Board of UNICA; Scott Thurlow, President, Canadian Renewable Fuels Association; Jayant Godbole, President and Director PRAJ Americas, Inc.; and Robert Vierhout, Secretary-General, ePURE

nec14-epureA few years ago, it was Brazil and the United States sparring with each other over ethanol trade and tariffs, but now it is the Europeans who are challenging the U.S. ethanol industry in the export arena.

“The real loser in the EU’s nonsensical action is the European consumer, who is being denied access to low cost high performance renewable fuels,” Dinneen said in his state of the industry address. Vierhout challenged that assertion on the panel. “Bob, please wake up,” said Vierhout. “If you would export your ethanol to Europe, who’s going to gain? Not the consumer, it’s the oil companies.”

Even Brazil and Canada fired back at Vierhout over Europe’s policy. “I’ll summarize for Rob,” said Velasco. “He’s never met a gallon, or a liter, or hectoliter, of ethanol imports that he likes.”

Thurlow questioned how this would play in the current European-U.S. trade negotiations. “I don’t see how your position can be tenable, Rob, if you are going to have a dispute resolution mechanism that will basically make it impossible for these types of ‘snap-back tariffs’ to be put on,” he said. To which Vierhout replied, “There’s still a possibility (the trade agreement) will exclude ethanol.”

Listen to the conversation here and watch the European exchange on video below: Growing Global Ethanol Industry Panel Discussion

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Audio, Ethanol, Ethanol News, Exports, International, National Ethanol Conference, RFA, Video

Students Interested in Ethanol

Cindy Zimmerman

The 2014 National Ethanol Conference scholarship winners are three totally different young men who all share the common interest of ethanol.

nec14-gavin-bobGavin Kenney is a farm boy from Nebraska who is about to graduate from the University of Nebraska with a major in agricultural economics and minors in agronomy and entrepreneurship. He grew up around the ethanol industry and is the brother of a previous scholarship recipient. Tyler will be going to work for Producers Hybrids when he graduates in May. “A conference like this gives me a good opportunity to network and talk to people,” he said. Gavin is pictured here with Renewable Fuels Association president and CEO Bob Dinneen. Interview with student Gavin Kenney

nec14-grundler-aaronAaron Walsh, pictured here with EPA official Chris Grundler, gained industry attention when he drove all the way from Michigan on his own dime to testify at the EPA hearing in December on the RFS proposal. A self-described “activist” who is devoted to using E85 in his flex fuel vehicle, even when it is inconvenient, Aaron got a job at a local ethanol plant as a result of that testimony. “Both my fuel and my car are made less than a hour from where I live,” he says proudly. Interview with student Aaron Walsh

nec14-tylerTyler Machado was born in Mexico, grew up in North Carolina and is currently attending San Francisco State University studying Environmental Studies and Spanish. His interest in renewable fuels began when he converted a 1981 Mercedes 300D to run on vegetable oil and he plans to travel to South America this summer to learn about renewable fuel projects and sustainable energy methods. Interview with student Tyler Machado

This is the fifth consecutive year Renewable Fuels Foundation has funded the scholarship to attend the NEC has been available to students in higher education with a focus on renewable fuels and intending to pursue a career in the industry.

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

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

Engine Experts Talk Ethanol

Cindy Zimmerman

nec14-engine-panelSpecialists in the areas of auto, motorcycle and small engines presented their experience with ethanol fuels in the real world during the National Ethanol Conference.

The panel was moderated by radio host and automotive expert Bobby Likis of Bobby Likis Car Clinic in Pensacola. “In 43 years, more than 200,000 cars have rolled through the doors of my automotive service shop,” said Likis. “Not one of my customers has lost or damaged an engine due to ethanol.” Comments by Bobby Likis, radio host and automotive expert

The panel featured:
Dr. Andrew Randolph, Technical Director with Earnhardt Childress Racing Engines – Comments by Andrew Randolf, Earnhardt Childress Brian West, Oak Ridge National Laboratory Deputy Director Fuels, Engines and Emissions Research – Comments by Brian West, Oak Ridge National Laboratory Bryan O’Neill, Auto Service Consultant and Vice President of the Iron Order International Motorcycle Club, Pensacola Chapter – Comments by Bryan O'Neill, motorcycle expert and advocate

O’Neill’s related that his own ride – a 2012 Victory Cross Country that “runs like a scalded dog” – has run on only E10 “from day one.” Regarding the use of E15, O’Neill made it clear that the bikers he knows are well aware that it is illegal to use that in their rides and they are capable of reading labels at the pump. “We’re bikers and I admit we’ve been known to do some dumb things, but we’re not stupid,” he said. “We know what to pump. It’s that simple.”

O’Neill is the star of a Bobby Likis Car Clinic/RFA video on motorcycles and ethanol.

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Audio, automotive, Ethanol, Ethanol News, Motorcycle, National Ethanol Conference, RFA

Hawaii: Using More Renewables and Less Oil

Joanna Schroeder

Hawaii is addressing its lack of fossil fuels by converting its energy to renewables. The state imports nearly all of its energy, including the petroleum that fuels more than 70 percent electricity generation. This effort is the subject of the U.S. Energy Information Administration’s (EIA) latest Today in Energy report.

Another reason the state is attempting to diversify its electricity supply is since their electricity generation costs are tied closely to petroleum prices, residential electricity rates are three times the national average. The EIA explains that Hawaii’s islands are not connected by transmission lines, so each island must have enough generating capacity to meet local demand and provide emergency reserves.

Screen Shot 2014-02-20 at 7.10.42 PMIn the face of these challenges, Hawaii’s grid operators have turned to a combination of renewable sources (with lower costs than oil-fired generation), distributed generation, and energy efficiency programs that lower the overall demand for electricity in the state.

The petroleum share of electric generation has been declining, from a high of 81 percent  in 2002 to 72 percent in 2013 (through November), while at the same time, generation from renewable sources has climbed from a 4 percent share in 2002 to more than 12 percent in 2013. Generation from coal comes from a single 180-megawatt (MW) facility on Oahu and has been relatively steady at 13-15 percent of total generation each year.

EIA has finds that total utility-scale electric generation has declined from 2007 through 2012. This reduction is attributable to distributed generation and net metering policies that encourage electric generation from homes and businesses, mostly from solar photovoltaic installations, and increased energy efficiency measures.

Hawaii produces renewable electricity from biomass, geothermal, and hydroelectric but recent new wind and solar projects have resulted in large increases in renewable electricity production. In 2012, wind accounted for 36 percent of total utility-scale renewable generation in Hawaii with an increase to 42 percent in 2013 (through November). Utility-scale solar generation has increased more than fivefold from 2012 to 2013 but still accounts for less than 2 percent of utility-scale renewable generation in Hawaii. However, EIA reports utility-scale data understate total solar generation in Hawaii because totals do not include the much larger output from small-scale solar power installations.

Hawaii’s installed renewable nameplate capacity in 2013 was just over 600 MW, more than triple the amount that in 2005. Nearly 57 MW of additional renewable capacity is currently under construction and slated to enter service during 2014.

Alternative energy, Renewable Energy, Solar, Wind

LA Rooftop Solar Program Shining Bright

Joanna Schroeder

According to a report from J.R. DeShazo, director of UCLA’s Luskin Center for Innovation, Los Angeles’ new rooftop solar energy program is delivering on its goal of cost-effective, clean power to thousands of electricity customers. The report also finds that the program should be expanded. Under the feed-in-tariff (FiT) program, electric power generated by solar rooftop installations on office and retail buildings, warehouses and apartment complexes is soldclean solar LA first project to the Los Angeles Department of Water and Power (LADWP) for use by its residential and business customers.

After numerous interviews with primary stakeholders, including solar developers and participating property owners, the UCLA researchers evaluated the initial two phases of the program, representing about 40 megawatts (MW) of solar power. These two allocations received a total of 256 program applications. Based on the rollout, the research team concluded that the “FiT 100” is on track to deliver 100 MW of carbon-free energy by 2015 – enough to power more than 21,000 homes annually.

The report also finds the program is on track to deliver on the jobs, economic and sustainability goals outlined when city officials approved the program in 2012. And the cost of power – averaging 15 cents per kilowatt-hour – is lower than any other similar FiT program in North America.

“The Los Angeles Business Council has been one of the strongest advocates for a viable feed-in-tariff program to produce 100 megawatts of solar electricity,” said L.A. City Council member Mitchell Englander. “Together the City of Los Angeles and the LABC have made great strides towards our efforts to reduce the City’s dependency on coal, moving away from centralized generation toward a more distributed model while creating thousands of local jobs in the process. Although the first and second tranches were successful, this study highlights an opportunity to make the process more user-friendly and cost-efficient in the future.”

In addition to clear environmental benefits, the installation of the first 40 megawatts is on course to generate 862 jobs, and the full 100 MW program is expected to create more than 2,000 jobs – 1,370 direct jobs plus 785 more indirectly related to the program, according to the UCLA study. The FiT 100 is also expected to deliver approximately $300 million in direct investment in the City of Los Angeles by solar companies and other businesses involved in the program. Once the full FiT 100 program is in place, the UCLA research team estimates that as many as 2.7 million tons of greenhouse gases will be displaced from the environment every year.Read More

Electricity, Renewable Energy, Solar

Ethanol Report on New Economic Study

Cindy Zimmerman

ethanol-report-adAt the 19th annual National Ethanol Conference in Orlando, the Renewable Fuels Association unveiled a new study by ABF Economics entitled “Contribution of the Ethanol Industry to the Economy of the United States.”

The author of that study was John Urbanchuk, who is the go-to economist for the biofuels industry – but he was unable to be at the conference so we caught up with him by phone for this edition of “The Ethanol Report.” Ethanol Report with economist John Urbanchuk on new ethanol economic study

Subscribe to “The Ethanol Report” with this link.

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFRenewable Energy Group (REG) has hired Todd Robinson as Director, Investor Relations. Robinson has spent more than 20 years in banking, investment, finance and treasury operations at companies including Wells Fargo, Deloitte & Touche, Pioneer Hi-Bred International, Pella Corporation, and HSBC Securities (USA), Inc. He will work with REG senior management and with the company’s investor relations firm, ICR, to enhance REG’s availability to the investment community.
  • Leading figures in geothermal power development will be participating in the GEA International Geothermal Showcase in Washington, D.C. on Earth Day, April 22. This includes speakers engaged in projects in Kenya, Tanzania, Switzerland, Romania, Turkey, Italy, Japan, Indonesia, Guatemala, El Salvador, Nevis, Colombia, the United States, Iceland and more. In addition to examining geothermal power projects around the world, panels will present leading market analysis discussing the state of the geothermal sector, a top level expert discussion of geothermal project risk reduction, and presentations from leading financial institutions including the World Bank, the Export-Import Bank of the U.S., and the Overseas Private Investment Corporation.
  • Ferrostaal Industrial Projects GmbH, a project developer facilitating worldwide investments, is taking a majority stake in the ‘Sainshand’ wind farm project in Mongolia. With 190 GWh of electricity every year, ‘Sainshand’ will be the largest wind park in Mongolia. The investment in the project amounts to approximately 120 million US dollars and is intended to connect to the grid as early as the end of 2015.
  • Green Charge Networks has announced the launch of a new white paper, The Next Energy Frontier: Power Efficiency. The white paper addresses the rising electricity cost facing America’s businesses. The paper also examines the state of energy efficiency initiatives and what will be the next frontier in savings – Power Efficiency.
Bioenergy Bytes

RFA Ethanol Industry Outlook and Pocket Guide

Cindy Zimmerman

nec14-guideEvery registration packet at the National Ethanol Conference included two new publications from the Renewable Fuels Association – the annual 2014 Ethanol Industry Outlook and 2014 Pocket Guide to Ethanol.

The publications offer both a comprehensive look at the ethanol industry today and a succinct industry overview in a pocket-sized package. They include information about the Renewable Fuel Standard (RFS), next generation biofuels, expansion of higher level ethanol blends, the global marketplace, food vs. fuel, and an updated map of biorefineries across America.

If you would like to get copies of the publications contact RFA’s Chris Findlay at 202-289-3835 or cfindlay@ethanolrfa.org – and both are available on line.

2014 Ethanol Industry Outlook
2014 Pocket Guide to Ethanol

2014 National Ethanol Conference Photo Album

NEC Coverage sponsored by Patriot Renewable Fuels LLC

Ethanol, Ethanol News, National Ethanol Conference, RFA, RFS

West Coast Offshore Wind Project Moves Ahead

Joanna Schroeder

The first offshore wind project proposed for federal waters off the West Coast has just taken a big step forward. Secretary of the Interior Sally Jewell joined by Governor John Kitzhaber and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau, announced that BOEM has given the green light for Principle Power, Inc. to submit a formal plan to build a 30 megawatt offshore wind pilot project using floating wind off the coast of Coos Bay, Oregon.

City of Coos Bay Oregon“Today’s announcement is consistent with President Obama’s commitment to take actions that will create jobs and develop clean, domestic energy that powers our economy,” said Jewell. “This pioneering project would demonstrate floating wind turbine technology capable of tapping the rich wind energy resources in deep waters offshore Oregon. As we look to broaden our nation’s energy portfolio, the innovative technology and its future application hold great promise along the West Coast and Hawaii.”

According to the National Renewable Energy Laboratory, the West Coast holds an offshore wind capability of more than 800 gigwatts of wind energy potential. This is equal to more than three quarters of the country’s entire power generation capacity. In addition, total U.S. deepwater wind energy resource potential is estimated to be nearly 2,000 gigawatts.

“Today marks a milestone in ocean renewable energy, and also the next big leap for cutting-edge innovation necessary to meet our energy and carbon reduction goals,” said Governor Kitzhaber. “These critical partnerships with our federal, regional, tribal, and local partners are advancing an energy future that supports a healthy economy and good jobs while strengthening Oregon’s legacy of environmental stewardship.”

BOEM has issued two non-competitive leases (Cape Wind in Nantucket Sound and an area off Delaware) and three competitive leases (two offshore Massachusetts-Rhode Island and another offshore Virginia). The competitive lease sales generated about $5.4 million in high bids for about 277,550 acres on the U.S. Outer Continental Shelf. Additional competitive auctions for wind energy areas offshore Maryland, New Jersey and Massachusetts are expected in 2014.

offshore wind, Renewable Energy