Outlook for Global Grain & Renewable Energy

Jamie Johansen

To kick off the 2012 Export Exchange attendees heard from keynote speaker Carl Casale, President and CEO of CHS, Inc., on the outlook for global grains and renewable energy.

Casale started off stated that the outlook simply depends on lots of different things and we have to focus on what we do know. He left attendees with one question: Do we have a strategy to survive, or even thrive in a volatile world?

Listen to Carl’s entire presentation here: Carl Casale at Export Exchange

While interviewing him after his presentation, he discussed the long term goals for global grain production and what we should expect production wise in the next year.

“The first thing you need to do is just take a step back and look at what the global demand is going to be over the long term. We have talked about 9 billion people on the planet, that’s going to require a 50% increase in grain production. As importantly, the 9 billion people are going to eat meat so there is another 50% increase in grain production to be able to feed livestock around the world. I have not seen anything that says that that’s not probably where we are going to be in the long term.”

“If you look at the market signals, it’s telling farmers that we want more corn acres in the US coming off a bit of a short corp that we had this year. Farmers are very well capitalized. I don’t think that will be an issue interms of getting hte corn produced. I think probably the biggest physical challenge we are going to have right now is we typically apply a lot of fertilizer for corn in the fall. It was so dry this year we just didn’t have the opportunity to do it. So, that will put al lote more pressure on supply chains in the spring.”

Listen to my interview with Carl here: Carl Casale Interview

You can find photos from this years Export Exchange here: 2012 Export Exchange

Audio, conferences, corn, Export Exchange, Exports, Soybeans

Export Exchange: Bringing Buyers & Sellers Together

Jamie Johansen

The key purpose for the 2012 Export Exchange was for buyers and sellers to meet and establish important relationships. The event sponsored by the US Grain Council and Renewable Fuels Association focused on getting answers, making contacts and building business. During the conference I had the opportunity to talk with Tom Sleight, President & CEO of the US Grains Council, about what this event means for the DDGS and the worlds grain supply.

“What we’re telling customers around the world is how the US producers will be there for them. The US farmers will be there for them now and in the future. Yes, we have droughts, thats a problem we have, but for the future the US has always responded to production challenges with more acres, greater production. Our message to the international community is that the US farmer is there in the international market for keeps.”

“I think out biggest thing is being all around, having boots on the ground, representatives that are selling these grains, bringing the buyers in. That’s what we are doing today with over 200 buyers from around the world. Bringing them in, making contacts and making sales. It is a different kind of business and it takes being there and extending your influence and representing producers interest all around the world. That’s what US Grains Council is doing.”

Listen to my entire interview with Tom here: Tom Sleight at Export Exchange

The US Grains Council also announced the official approval of the Syngenta corn variety MIR 162 Agrisure Vipterra in the European Union. This opens the way for exports of US corn co-products, including DDGS and corn gluten free.

Cary Sifferath, USGC senior regional director based in Tunis, said “This approval is a great success as it opens the window of opportunity for U.S. products, including DDGS and CGF, to enter the EU market. This is especially attractive in big markets like Ireland, Spain, Portugal and the Netherlands. Their ability to import these high-protein feed ingredients is critical at a time of crop shortage in Europe and high prices. Everyone is looking for alternatives,”

You can find photos from this years Export Exchange here: 2012 Export Exchange

Agribusiness, Audio, conferences, corn, Distillers Grains, Export Exchange, Exports, RFA, USGC

Citizen’s Guide to Energy

Joanna Schroeder

The presidential election is less than two weeks away and although the candidates have discussed energy, neither has debated over the right strategy for global climate change. Our legislators also typically fail to consider the consequences of actions they endorse. Therefore, according to Public Agenda, if the country hopes to move the needle on important issues, such as energy, voters need to understand what’s really at stake.

Issue one: according to research, nearly half of all Americans cannot identify a renewable energy source and almost 4 in 10 cannot name a fossil fuel. So for those ready to learn something new, or just want to rethink the issues surrounding energy policy, Public Agenda has released an interesting free guide, “A Citizens Solutions Guide Energy.”

I found the guide interesting. It establishes where the globe is at today and what global energy needs are predicted to be in the future. Then it discusses “things we do know”. This includes: the U.S. population is growing and the country’s energy consumption is growing as well; world energy demand is expected to increase by nearly 40 percent; most of our energy, 83 percent, comes from fossil fuels; and renewable energy has serious fiscal drawbacks – and we’re nowhere near ready to depend on it at a substantial level.

The guide provides energy tradeoffs, but I did note the only category with costs was renewables. Despite the fact that petroleum, natural gas, nuclear and coal have been around for decades, there is still a costs associated with them. Keep this in mind moving forward. The guide presents three possible approaches to consider and include arguments for and against each approach:

  • Approach 1: Move away from fossil fuels as quickly and as safely as we can. This will protect the environment and in the long run will give us cheaper and more reliable energy sources.
  • Approach 2: Make sure we have enough affordable energy now to support our economy and ensure our energy security.
  • Approach 3: Move toward a more energy efficient society.

While I agree with much of the information provided in the area, there are also areas I don’t agree with. But this is good because the guide achieved its goal – made me think more intelligently and in-depth about energy policy. Let’s hope I don’t forget what I’ve learn  before I hit the polls.

Alternative energy, energy efficiency, global warming, Opinion, Renewable Energy

NRC Releases Algae Sustainability Report

Joanna Schroeder

This week, the National Research Council (NRC) released a new report, “Sustainable Development of Algal Biofuels in the United States.” The report was a result of a request from the Department of Energy, Office of Energy Efficiency and Renewable Energy’s (DOE-EERE) Biomass Program.

The purpose of this study was to identify and anticipate potential sustainability concerns associated with a selected number of pathways for large-scale deployment of algal biofuels; discuss potential strategies for mitigating those concerns; and suggest indicators and metrics that could be used and data to be collected for assessing sustainability across the biofuel supply chain to monitor progress as the industry develops. In addition, NRC was asked to identify indicators that are most critical to address or have the greatest potential for improvement through DOE intervention as well as to suggest preferred cost and benefit analyses that could best aid in the decision-making process.

Ultimately, the report found that scaling up the production of biofuels made from algae to meet at least 5 percent, or approximately 39 billion liters, of U.S. transportation fuel needs would place unsustainable demands on energy, water, and nutrients. However, these concerns are not a definitive barrier for future production, and innovations that require research and development could help realize algal biofuels’ full potential.

The Biotechnology Industry Organization (BIO) today welcomed the report and noted that mitigation strategies are currently being developed to reduce energy, water and nutrients needed to convert algae to biofuels.

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said, “While the National Research Council catalogued and prioritized every potential environmental and resource challenge for the development of algae biofuels, their report correctly concludes that the industry has developed or is developing sustainable strategies to overcome these challenges. Biotechnology will continue to play a crucial role in the improvement of the productivity and economic viability of algae biofuels and other advanced biofuels that are cleaner, safer and healthier than petroleum-based fuels.”

Erickson added, “The potential benefits of developing algae biofuels – which include reducing reliance on foreign oil and contributing to a healthier economy by deploying U.S. technology – warrant continued research, development and commercial development of algae biofuels.”

advanced biofuels, algae, Alternative energy, BIO, Renewable Energy, Research

Boeing, COMAC Kick of Biofuels Project

Joanna Schroeder

Hangzhou Energy Engineering & Technology, Co., Ltd., (HEET) will conduct the first research project at the newly formed Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center. HEET will focus on ways to convert waste cooking oil into sustainable aviation biofuels. The center was created by Boeing and Commercial Aircraft Corp. of China (COMAC) and opened in August at COMAC’s new Beijing Aeronautical Science and Technology Research Institute (BASTRI).

The goal of the project is to identify contaminants in waste cooking oil, which often is described in China as “gutter oil,” and develop processes that may treat and clean it for use as jet fuel. The focus of the project for the first year will be to demonstrate the feasibility of achieving significant cost reduction in converting gutter oils and other waste oils into jet fuel through improvement of conversion efficiency and associated technology.

“As one of the member organizations of COMAC, BASTRI was built for carrying out civil aviation industry research and we aim at expanding knowledge in sustainable aviation biofuels and carbon emissions reduction,” said Qin Fuguang, president of BASTRI, COMAC. “China is the world’s fastest growing aviation market and the biggest consumer of cooking oil. There’s great potential for converting the waste cooking oil into sustainable aviation fuel. It’s a good opportunity for Boeing, HEET and COMAC to work together and make efforts to protect the environment.”

China annually consumes approximately 29 million tons of cooking oil, while its aviation system uses 20 million tons of jet fuel. Finding more efficient ways to convert “gutter oil” into jet fuel could increase regional biofuel supplies and improve biofuel’s affordability, enhancing the potential for commercial use.

Dong Yang Wu, vice president of Boeing Research & Technology – China, added, “HEET is a strong partner for the Boeing-COMAC technology center’s ‘gutter oil’ research project. We are excited about opportunities to partner with leading research capabilities in China to accelerate the global push for renewable jet fuels and support commercial aviation’s growth while reducing its environmental footprint.”

advanced biofuels, Alternative energy, aviation biofuels, Renewable Energy

Free Biodiesel Workshop in Sioux Falls

Joanna Schroeder

The American Lung Association in South Dakota is hosting a free workshop on biodiesel on Friday, Oct. 26th from 11 a.m. to 2 p.m. at the Ramada Inn & Suites at 1301 W Russell Street in Sioux Falls. The event is part of National Alternative Fuel Vehicle Day Odyssey (www.AFVDayOdyssey.org), a biennial event to promote the use of alternative fuel and advanced technology vehicles.

Don’t think biodiesel is that important to you? Think again. Nearly everything we eat, wear, buy or sell in this country is transported by a truck, train or barge powered by diesel, a fuel linked to particulate air pollution.

Now that your ears have perked up, here is some additional information about the workshop. The featured speaker is Hoon Ge, a fuel expert with MEG Corp. Workshops will cover recent refining changes in diesel fuels; how to prevent, identify and respond to issues with diesel fuels; the growing role of biodiesel in the transportation industry; and the coming year-round availability of biodiesel in the region.

The workshop is supported by the South Dakota Soybean Research & Promotion Council and the National Alternative Fuels Training Consortium.  The workshop is free, but attendance is limited. Contact Kelly Marczak at (651) 268-7590 or Kelly.Marczak@lungmn.org.

advanced biofuels, Alternative energy, Biodiesel

POET-DSM Partners with ANDRITZ

Joanna Schroeder

POET-DSM has signed on the International Technology Group ANDRITZ, to supply a two-step biomass treatment process for the commercial-scale cellulosic bioethanol plant under construction in Emmetsburg, Iowa known as Project LIBERTY. The technology was designed to help draw out available sugar in the collected biomass, in this case corn stover, corn cobs, and husks, so it can be converted into cellulosic ethanol.

The ANDRITZ technology is a two-stage process that includes a vertical reactor, an interstage washer and then the continuous steam explosion technology (Advanced SteamEx process) to draw out available sugars from the cellulose material. It’s those sugars combined with Project LIBERTY’s enzyme and yeast technologies – that will get converted into ethanol.

“We’ve been working with ANDRITZ for over four years, collaborating on the development for a treatment process that aligns with our conversion technology development here at POET-DSM, and we selected them to provide that treatment process,” said James Moe, POET-DSM board member. “We’re happy to have them on-board. To say this has been quite a process is an understatement.”

Jay Miele, VP and General Manager with ANDRITZ Inc. added, “Our design teams have been working closely together over the past four years to optimize our Advanced Steam-Ex pretreatment technology for Project LIBERTY. POET-DSM’s dedication to becoming a leader in cellulosic bio-ethanol is quite evident to us. We look forward to successfully completing our part of the delivery for Project LIBERTY, and we are eager to work together on future projects.”

Constructed is scheduled to be complete in late 2013. In preparation, local farmers are increasing the amount of biomass delivered to the site in an effort to fine-tune storage efforts and refine the biomass collection process. Harvest goals for this fall were to collect nearly 85,000 tons of corn cobs and light stover. Eventually, the biorefinery will need nearly 285,000 tons of biomass per year once at full production capacity of 20 million gallons per year.

advanced biofuels, Alternative energy, Cellulosic, Ethanol, POET, Renewable Energy

Supply & Demand of US/World Coarse Grains

Jamie Johansen

A highlight for the 2012 Export Exchange was Dr. Joe Glauber’s comments on the supply and demand of the United States and worlds coarse grains. Dr. Glauber is the Chief Economist for the United State Department of Agriculture. Attendees from across the world listened as he discussed the aftermath of the US drought and the goals for price moderation worldwide.

“No surprise I talked about the drought and the effect on corn and soybeans primarily. This was a global conference so wheat, as well. Clearly the drought was a the big story this summer. It certainly affected prices. As we look forward I think the key thing in terms of price moderation is the world is now turning to the South American soybean crop and we should have more information on that in the next couple months. The real issue will be what it means for spring planting here in the United States. I think given these prices we are going to see strong acreage again for corn and soybean. Hopefully we’ll see better yields and some rebuilding of stocks and some moderation of prices because the livestock side of the sector has been hit pretty hard.”

Listen to my interview with Dr. Glauber here: Joe Glauber Interview

Of particular interest to the ethanol industry, Dr. Glauber spent several minutes of his presentation discussing how the drought, corn prices and other factors have influenced ethanol production this year, as well as some insight on the blend wall and the Renewable Fuel Standard (RFS). Listen to that portion of his remarks here: Joe Glauber ethanol comments

Listen to Dr. Glauber’s entire presentation here: Joe Glauber at Export Exchange

You can find photos from this years Export Exchange here: 2012 Export Exchange

Audio, conferences, Export Exchange, Exports, USDA

Geoff Cooper Addresses Attendees at Export Exchange

Jamie Johansen

Attendees for the 2012 Export Exchange were the audience for Geoff Cooper of the Renewable Fuels Association (RFA). Cooper, who serves as RFA’s Vice President for Research and Analysis, spoke to over 500 of the worlds feed producers, marketers and buyers. He explained that distillers grains and other ethanol co-products have become a tremendously important component of the global animal feed market.

“The American ethanol industry produced nearly 39 million tons of nutrient-dense animal feed in the 2011/12 marketing year, meaning the ethanol industry has surpassed the U.S. soybean crushing industry in terms of feed production,” Cooper said. “The feed produced by the ethanol industry is nourishing beef, dairy, swine, poultry, and fish around the world. About one-quarter of the feed co-products generated last year were exported to more than 50 countries.”

Cooper also explained that the U.S. ethanol industry has responded to the historic drought of 2012 by curtailing its consumption of corn. “There is a false notion out there that the ethanol industry is somehow insulated from the effects of the drought and high corn prices because of the Renewable Fuel Standard (RFS),” Cooper said. “That simply isn’t true. As crop conditions deteriorated in July and August and corn prices increased, corn use for ethanol dropped by almost 15 percent. That means the ethanol industry reduced its corn consumption by about 600-700 million bushels on an annualized basis in less than two months’ time. Without a doubt, the ethanol industry has not been spared from the effects of the drought.”

Listen to Geoff’s comments here: Geoff Cooper Comments

You can find photos from this years Export Exchange here: 2012 Export Exchange

Agribusiness, Audio, conferences, Export Exchange, Exports, RFA, USGC

Poll Shows Room for Improvement

Melissa Sandfort

Our latest ZimmPoll asked the question, “Have our efforts to educate consumers about agriculture been successful?”

Our poll results: No one said Yes, real improvement; fifty-two percent said Yes, but long way to go; thirty-five percent said No, minimal impact; three percent said No, no impact; and ten percent said Waste of time. It looks like many believe there’s room for improvement and our work is far from being done.

Our new ZimmPoll is now live and asks the question, “How important will rural vote be in election?” It is a challenging time in agriculture for thousands of farmers and ranchers across the country. As the rural population goes to the poll booth to cast their vote for the candidate they believe supports farmers and ranchers, how important do you think their votes are? Let us know.

And remember, Election Day is Tuesday, November 6, 2012. Go cast your vote!

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll