Arkalon Ethanol Signs Up for Enogen

Arkalon Ethanol Signs Up for Enogen

Joanna Schroeder October 22, 2013

Arkalon Ethanol, LLC based in Liberal, Kansas has signed an agreement with Syngenta to use corn that features Enogen trait technology. The ethanol plant will begin to use the trait, replacing its liquid alpha amylase, following the 2014 corn harvest.

“We are excited to announce this agreement with Arkalon Ethanol and we’re confident that Enogen technology is a solution that can add tremendous value to its operation,” said David Witherspoon, head of renewable fuels for Syngenta. “We have collaborated with Arkalon throughout this entire process and this agreement is a true example of our commitment to our customers, and the types of partnerships we want to form within the ethanol industry.”

According to Syngenta, Enogen grain delivers alpha amylase enzyme in the corn kernel, eliminating the need for an ethanol plant to use liquid alpha amylase. The alpha amylase enzyme found in Enogen grain helps an ethanol plant reduce the viscosity of its corn mash. This breakthrough reduction can lead to better levels of solids loading, which directly contributes to increased ethanol yields and throughput, as well as cost savings from reduced natural gas, energy, water and chemical usage.

Arkalon’s sister plant, Bonanza BioEnergy, LLC, is currently wrapping up its first year of contracting with local growers to produce Enogen grain. Syngenta collaborated with Bonanza BioEnergy on a three-month Enogen technology trial that ended in July 2012. A commercial agreement followed in November that same year. Arkalon Ethanol and Bonanza BioEnergy are two of three ethanol plants operated by Conestoga Energy Partners, LLC.

“After seeing the value that Enogen corn can create at our Bonanza plant, we naturally wanted to explore implementing the technology at the Arkalon plant,” said Tom Willis, CEO of Conestoga Energy Partners. “We have full confidence in the technology and in Syngenta as a partner, and we are eager to begin working with our local farmers to supply Enogen grain.”Read More

biofuels, corn, Ethanol, Renewable Energy

New Funding to Develop Advanced Biofuels Projects

Joanna Schroeder October 22, 2013

Agriculture Secretary Tom Vilsack announced the availability of $181 million to develop commercial-scale biorefineries or retrofit existing facilities with appropriate technology to develop advanced biofuels. The Biorefinery Assistance Program was created through the 2008 Farm Bill and is administered by USDA Rural Development. It provides loan guarantees to viable commercial-scale facilities to develop new and emerging technologies for advanced biofuels.

“This financing will expand the number of commercial biorefineries in operation in the U.S. that are producing advanced biofuels from non-food sources,” Vilsack said. “USDA’s Biorefinery Assistance Program is yet another way USDA is helping to carry out the Obama Administration’s ‘all-of-the-above’ energy strategy to develop every possible source of American-made energy. But the benefits go beyond reducing our dependence on foreign oil. These biorefineries are also creating lasting job opportunities in rural America and are boosting the rural economy as well.”

Applications for biorefinery assistance are due by January 30, 2014. More information about how to apply is available in the October 2, 2013 Federal Register announcement or by contacting the USDA Rural Development National Office.

Since the start of the Obama Administration, the USDA Biorefinery Assistance Program has provided approximately $684 million in assistance to support biofuels projects in eight states.

Secretary Vilsack noted that today’s funding announcements are another reminder of the importance of USDA programs such as the Biorefinery Assistance Program for rural America. A comprehensive new Food, Farm and Jobs Bill would further expand the rural economy, Vilsack added, saying that’s just one reason why Congress must get a Food, Farm and Jobs Bill done as soon as possible.

advanced biofuels, Renewable Energy

Ethanol Sweet Spots – Part II

Joanna Schroeder October 22, 2013

Yesterday, DF featured an article on “Must Know Ethanol Trends” that came out of Christianson & Associate’s, PPL (C&A) Biofuels Benchmarking 2012-13 Annual Report. In addition to identifying important trends for the industry, the report also identified some “sweet spots” for the industry.

John Christianson, partner with C&A, said running a good business is the first thing and being as efficient as possible is important and having good sound prudent risk management is always going to be at the forefront of your business. But going forward, he said there are technology and market issues that will be a factor, or a sweet spot, for the ethanol industry.

“From a technology perspective, we’re seeing plants go further and digging further into the yield component,” said Christianson. “They are looking at difference technologies that will allow them to remove different components of the kernel of corn and allow them to create multiple products on the back-end. As we see this industry evolve, we’re going to see them evolve into a biorefinery industry.”

He cautioned that in order for a plant to make investments, you need a technology that is going to provide a return on investment. Last year was not the year for plants to make investments but Christianson said plants will need to make technology investments if they want to continue to be a long-term viable company.

Any ethanol plant interested in becoming a participant in C&A’s Benchmarking program, or interested in purchasing the The Biofuels Benchmarking 2012-13 Annual Report can contact the Benchmarking team.

Listen to John Christianson discuss ethanol sweet spots in detail here: Ethanol Sweet Spots

Audio, biofuels, corn, Ethanol, Research

Ethanol Production & Crush Margins Improve

Joanna Schroeder October 22, 2013

According to forecasts published in Biofuelscan, a daily report from Platts that covers the global biofuels industry, U.S. ethanol production data, to be reported on October 23, 2013 by the U.S. Energy Information Administration (EIA), ethanol production for the week ending October 18, 2013 was 861,000 barrels/day (b.d). This number would show an increase of 0.58 percent from last week’s Bentek Energy ethanol production forecast.

Corn futures prices have hovered near three-year lows and rising crush margins – the price difference between a gallon of ethanol and gallon of corn — have combined to boost ethanol production in recent weeks. As a result, ethanol production figure has risen for four of the past five weeks, and it is expected to rise further, given the projections of a bumper U.S. corn crop during the 2013 harvest season.

According to calculations from Kingsman, the sugar analytics unit of Platts, the crush margin will rise to 24.4 cents/gal for the reporting week, up 6.3 cents/gal from the prior week.

Platts began publishing its Bentek Energy and Kingsman forecasts of ethanol production and crush margins, respectively October 4, 2013 to fill a data gap during the temporary shutdown of the U.S. government related to lack of budget appropriations.

“We are pleased to meet a market need for independent estimates of this important government data series,” said Simon Thorne, editorial director of agriculture at Platts. “The advance forecasts are aimed at helping the marketplace better estimate price-sensitive data and assist customers in making better and timelier business decisions.”

The Bentek Energy forecast of U.S. ethanol production utilizes data from approximately the past three years and is calculated on actual consumption figures at ethanol production plants.

“When comparing the Bentek production forecast alongside the actual government production data, our estimate is within an average 0.06% – a very strong correlation since the records began in 2011,” concluded Thorne.

biofuels, corn, Ethanol, Renewable Energy

BioEnergy Bytes

Joanna Schroeder October 22, 2013

Dyadic International has announced that it has entered into agreements with all of its outstanding promissory note holders to extend their maturity dates to January 1, 2015. The convertible portion of the debt, representing $6.8 million of the total $8.2 million outstanding principal, may be prepaid by Dyadic at any time in whole or in part, without penalty, after March 31, 2014 with 30 days notice. In all other respects, the terms and conditions of these promissory notes remain unchanged and in full force and effect.
The largest tracking solar plant acquired by Southern Company subsidiary Southern Power in partnership with Turner Renewable Energy, the Spectrum Solar Facility, has begun commercial operation. The 30-megawatt (MW) solar photovoltaic (PV) installation utilizes tracking technology that enables greater operating efficiency by optimally directing solar panels to track the sun as it moves across the sky. Both the Spectrum Solar Facility and the partnership’s second-largest tracking solar plant – the 20-MW Apex Solar Facility – are located in Clark County, Nevada.
Panasonic Eco Solutions North America (Panasonic Eco Solutions) and Coronal Management, LLC (Coronal) have acquired 16.2 MW of California CREST (California Renewable Energy Small Tariff) projects from Macquarie Capital. The Panasonic Eco Solutions and Coronal platform provides financing for the development and construction of utility scale and distributed generation solar systems to help companies and organizations reduce the complexity of implementing solar installations. The portfolio consists of nine solar projects located in Tulare and Kings Counties in central California, and will provide enough energy to Southern California Edison’s grid to power approximately 14,500 homes annually.
U.S. Energy Secretary Dr. Ernest Moniz will deliver the keynote address at the 2013 Platts Global Energy Outlook Forum “Bridging the U.S. Boom: Global Markets Prepare” on Thursday, December 12, 2013 in New York City, New York.

Bioenergy Bytes

Evonik Opens New Biodiesel Catalyst Plant

John Davis October 22, 2013

German-based Evonik Industries opened a new biodiesel catalyst production plant in Argentina. This company news release says Evonik hopes to take advantage of what it sees as a growing South American market.

“As one of the world’s leading providers of biodiesel-production catalysts, we wish to continue consolidating and expanding our position,” [Patrik Wohlhauser, the member of the Evonik Executive Board responsible for the South America Region] remarked at the plant opening. He then added, “The investment is both a clear acknowledgment of our commitment in South America, as well as part of our strategy, which we hope will allow us to participate in the region’s growth.”

With an annual capacity of over 60,000 metric tons, the new production plant will supply ready-to-use alkoxides for use as catalysts in biodiesel production from renewable raw materials. The new facilities will serve primarily the Argentine and Brazilian markets. Evonik located the plant on the same site as Terminal 6 S.A., which operates a large biodiesel facility.

As Jan Van den Bergh, president of Evonik’s Advanced Intermediates Business Unit, explains, “Our aim in building the plant in Puerto General San Martín in the Rosario Region—in the heart of Argentina’s biodiesel industry—is to supply our South American customers with locally produced, high-quality catalysts.”

Evonik is one of the world leaders in biodiesel catalysts, with facilities in Argentina, Germany, and Mobile, Alabama, in the United States.

Biodiesel, International

Biodiesel Supply Curve Key to RIN Price Structure

John Davis October 22, 2013

A new analysis from the University of Illinois shows that the biodiesel supply curve is key to the the price of Renewable Identification Numbers (RINs). Building on earlier work that showed that biodiesel production responds positively to profitability, Scott Irwin presents a new analysis to show the relationship between the biodiesel supply curve and the RIN prices.

The estimated supply curve for biodiesel in Figure 3 has several interesting characteristics. First, the slope of the curve increases as production increases, and in particular, relatively large price changes are required to move production above 2 billion gallons…

Second, the curve can be used to compute the elasticity of supply, which is simply the percent change in production for a one-percent change in price, all else held constant. The elasticity changes at each point along the curve for this functional form, so two examples are provided. At a production level of 1 billion gallons, the elasticity of supply is 8, implying that a 1 percent increase in price prompts an 8 percent increase in production. At a production level of 2 billion gallons, the elasticity of supply drops to 1.5, implying that a 1 percent increase in price results in only a 1.5 percent increase in production. The declining elasticity of supply as production increases makes sense since less and less excess capacity is available. Readers may also recall that much smaller production elasticities were reported in the September 25th post. This simply reflects the fact that a given cents per gallon increase in net returns is a much larger percentage increase relative to net returns as compared to price.

Third, the supply curve will shift if any of the variables held constant (price of soybean oil, natural gas, methanol, and glycerin) is allowed to change. By far the most important of these variables is the price of soybean oil since soybean oil feedstock costs represent over 80 percent of the total variable costs of biodiesel production for the type of plants assumed in this analysis.

The analysis concludes that the biodiesel supply curve declines rapidly as the level of biodiesel production increases, a reflection of capacity limits. And that all plays key roles in setting prices tradable RINs credits.

Biodiesel, RINS

Must Know Ethanol Trends – Part I

Joanna Schroeder October 21, 2013

The Biofuels Benchmarking 2012-13 Annual Report is out and in addition to identifying past, current and future biofuel trends, the report identifies some emerging trends for the ethanol industry. During an interview with John Christianson, partner with Christianson & Associates, PPLP (C&A), I asked him what trends they have been seeing and he noted five in particular of importance.

Christianson noted that spinning corn oil off the back of the plant has had a big impact on the industry and to date, nearly 75 percent of all ethanol plants are using a corn oil extraction technology. He also noted that 2012 was a very difficult year for the ethanol industry, very tight margins, and with the high feedstock costs, it really squeezed margins for the year. He said that when looking at the Benchmarking report the industry was hovering over break-even and the laggards were losing money and the leader plants were making money.

“In the first two quarters of 2013 we’re seeing a really nice trend where we’re getting upward into the areas where we have some positive grind margins,” said Christianson. “This is due to ethanol net-back prices staying strong in 2013 first two quarters and our feedstock costs dropping off and having better margins.” He anticipates this will continue into 2014.

The last year also saw ethanol yields drop a bit due to the drought-ridden 2012 harvest; however, Christianson said based on forecasts for the 2013 harvest, yield should go back up once the ethanol plants start grinding 2013 harvest corn and the industry should go back on the trend of increasing yield each year.

Other trends include the sophistication of the ethanol industry on their grind margin management, improved risk management practices and improved environmental sustainability. “So enhanced risk management and enhanced production efficiencies going forward are going to allow plants to squeeze out as much profitability as possible,” said Christianson.

Listen to John Christianson discuss current ethanol trends in detail here: Must Know Ethanol Trends

Audio, biofuels, corn, Ethanol, Research

Genscape Invokes NASA for Updated Corn Yield Forecast

Joanna Schroeder October 21, 2013

As the federal government and its agencies begin to ramp up from a mandated furlough, Genscape is filling the gap by using NASA satellite data. The company has released an updated October corn yield forecast of 13.3 billion bushels. The company has noted that other analysts, including the U.S. Department of Agriculture (USDA), have wide gaps in their predictions ranging from 13.2 billion bushels of corn produced during the 2013 growing season, to 14.2 billion bushels of corn.

Genscape noted a unique combination of spring floods and flash droughts, coupled with an unusually and long growing season, have conspired to make this year’s annual corn forecast the most difficult on record. However, the company said through its Landviewer technology, is able to simplify the complexity of predicting forecasts.

“Given the unusual circumstances around this year’s growing season, we feel our NASA satellite and big data initiatives are even more important,” said Dr. Steffen Mueller, director of spatial grain analytics at Genscape. “We are back to our original prediction of 13.3 billion bushels, and we have the hard data to back it up.”

The gap in USDA data has created delays in many modeling efforts. Genscape said its LandViewer model offers next generation data acquisition techniques, integrates NASA satellite imagery, and the industry’s most unified ground-based crop yield verification – called “ground truthing – with extensive analysis by experienced soil/agricultural scientists.

Normally at this time of year, the USDA incorporates Farm Service Agency (FSA) lost acreage data; however, this year that analysis has not available to market participants because of the temporary government shutdown. Genscape said because it is able to incorporate NASA satellite imagery with best-in-the-industry ground truthing data, their latest forecast is the only known model to account for this market intelligence.

biofuels, corn

BioEnergy Bytes

Joanna Schroeder October 21, 2013

Vivint Solar has announced it has raised two more rounds of residential solar financing. The funds total $540 million and are provided by two major undisclosed financial institutions. The $540 million announced is in addition to the $200 million of tax equity financing that Vivint Solar announced in August of this year.
JinkoSolar Holding Co., Ltd. has announced that it has signed a strategic agreement with the local authority in Electromechanical Industrial Park, Zhenjiang New Area, Jiangsu Province, to develop 120 MW distributed PV power plant within 3 years. It will be the largest distributed PV power plant in China upon its completion.
Trina Solar Limited and Argand Energy have announced the completion of a 453 kW solar PV system on the rooftop of Exhibit Resources in Raleigh, North Carolina. This project, commissioned in July, is one of the few third-party owned commercial rooftop projects completed in North Carolina without the SunSense incentive.
GridPoint, Inc., a company focused on energy management and sustainability solutions that help customers maximize operational and energy savings, has appointed Board of Directors member Todd M. Raba as Chief Executive Officer to scale the business in its next phase of growth. Raba brings over 30 years of experience leading large, highly competitive organizations, including two Berkshire Hathaway Inc. companies: Johns Manville, where as Chairman he reported directly to Warren Buffett, and MidAmerican Energy Company.

Bioenergy Bytes

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