Iowa Ag Secretary Says Ethanol is Strong
While on Iowa Public Television’s (IPTV) program, Iowa Press, Iowa Secretary of Agriculture Bill Northey disagreed with a reporter that said the ethanol industry is on “quicksand” due to the expiration of the blenders tax credit.
“No, ethanol is certainly very strong,” stated Northey. “We have 41 ethanol plants in Iowa producing over 3 billion gallons of ethanol a year and we actually lost those tax credits last December 31st. So, we have been operating the first five months of this year without that 45 cent a gallon tax credit.”
Northey stated that ethanol has had a positive impact on the state’s agriculture industry overall, even for livestock producers because of the co-product distillers grains (DDGS). “So, corn goes in the front, the starch is used for ethanol, the product coming out of the back is distillers dry grains and solubles. That is a wonderful cattle feed and we are actually seeing an increase in the number of cattle fed in Iowa because of that,” he added.
To watch the full interview with Bill Northey click here.
Back to Top
Sec. Vilsack Calls Senate Vote Preventing Some Biofuels ‘A Big Mistake’
According to OPIS, while on a conference call with reporters, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack said he was “extremely disappointed” the Senate Armed Forces Committee recently voted to approve a defense spending bill that would prevent the use of some biofuels.
One amendment approved in the bill would prohibit the use of funds “for the production or sole purchase of an alternative fuel if the cost exceeds the cost of traditional fossil fuels used for the same purpose, except for continued testing purposes.”
“We are extremely disappointed in that vote because I think that vote fails to recognize and appreciate the enormous potential of this [biofuels] industry to revitalize the rural economy,” stated Vilsack. “I think it fails to realize the expanding farm income, job creation capacity that effort will have and the fact it will place our military at a disadvantage, potentially having to rely on imported fuel supplies,” continued Sec. Vilsack. He also said the approval of the bill “essentially turns its back on its folks in rural America.”
Back to Top
Ethanol Producers Share How They’re Achieving Success without the VEETC
At the International Fuel Ethanol Workshop & Expo (FEW), four ethanol plant executives gathered on stage to address “Holding Strong: How U.S. Ethanol Producers are Achieving Profitability without the Volumetric Ethanol Excise Tax Credit (VEETC).”
 |
Shown, from left, are Ray Defenbaugh, Big River Resources, Mark Marquis, Marquis Energy, Walt Wendland, Golden Grain Energy and Randy Doyal, Al-Corn Clean Fuels.
PHOTO: BBI INTERNATIONAL, Sue Retka Schill |
While some predicted a fallout of the ethanol industry after the expiration of the VEETC, that hasn’t come true for the industry. There were some short-term effects, with retailers buying up more ethanol at the end of the year before the tax credit expired, but President and CEO of Big River Resources LLC Ray Defenbaugh said it was ultimately a good thing for the industry. The VEETC was benefiting blenders, while the ethanol industry was “catching flack” for it. “Right now it doesn’t appear to be as dramatic an effect as some predicted,” said Defenbaugh.
A bigger impact on the industry has been the delay of E15, stated President and CEO of Golden Grain Energy LLC Walter Wendland. “They took away an incentive before we could grow the market,” said Wendland. It’s like getting handcuffed and then being told to fight, he added. It’s clear to Wendland that Big Oil has drawn a line in the sand and is fighting not to give up any more of the consumer’s fuel tank.
To read the entire Ethanol Producer Magazine article click here.
Back to Top
AFPM Calls for RFS to be Repealed or Re-Opened
According to OPIS, in testimony to the House Oversight and Government Reform Committee, American Fuel and Petrochemical Manufacturers (AFPM) President Charles Drevna restated his criticisms of the Renewable Fuels Standard (RFS) and renewing calls to repeal or re-open the measure.
Drevna cited the Environmental Protection Agency’s (EPA) partial waiver of E15, cellulosic requirements and Renewable Identification Numbers (RINs) trading as his criticisms of the RFS.
Growth Energy spokesman Michael Frohlich responded by stating that Drevna is working off of flawed data. "It is misinformation to push along an agenda that supports foreign oil." He noted that when the RFS was first implemented in 2005, the U.S. imported 60.3 percent of its oil. In 2011, that number was down to 45 percent. "The facts speak for themselves," Frohlich said. "We aren't that far along into the RFS. ... The RFS has already made substantial progress.”
"Our message to Congress remains the same: Don't mess with the RFS," stated Renewable Fuels Association spokesman Matt Hartwig. "The RFS has been the most effective energy initiative this country has put in place to lessen our dependence on foreign oil, create American jobs that cannot be outsourced and provide a platform for innovation and growth in American biofuel production.” Hartwig added, “The RFS ought not be sacrificed to appease a few special interests seeking corn at below market prices or further perpetuating America's unsustainable addiction to imported oil.”
Back to Top
Cellulosic Ethanol from Corn Kernels
The National Corn-to-Ethanol Research Center (NCERC) recently announced it had successfully produced ethanol from the cellulosic portion of the corn kernel.
 |
Graphic Courtesy of DomesticFuel |
“This research is demonstrated proof of the viability of ‘generation 2.0 ethanol,’” NCERC Director John Caupert said. “By utilizing existing technologies readily available in the commercial marketplace, the Center was able to produce a biofuel that builds upon the strengths of conventional corn ethanol and the promise of cellulosic ethanol, thus making bolt-on cellulosic ethanol a reality.”
Caupert added that the potential for cellulosic ethanol has serious immediate and long-term impacts on the biofuels industry, especially the ethanol industry. “Any of the 211 existing ethanol plants in the United States could be retrofitted with existing bolt-on technologies to produce cellulosic ethanol from corn without the need to build new facilities,” stated Caupert. “This translates into opportunities for jobs and economic development, particularly in rural areas."
Back to Top
Bob Dinneen Advocates for RFS and E15 at 2012 FEW
During the opening session of the 28th Annual International Fuel Ethanol Workshop (FEW), Renewable Fuels Association (RFA) President Bob Dinneen highlighted the challenges facing the ethanol industry in the near future and the importance of maximizing demands.
 |
Photo Courtesy of Domestic Fuel |
Wearing a “Don’t Mess with the RFS” button, Dinneen stressed the importance of the Renewable Fuels Standard (RFS) and E15. He stated the ethanol industry must combat Big Oil’s efforts to undermine the RFS and keep E15 off the market.
“You got to have a button, that’s what makes a campaign, but it also reflects the seriousness with which we take this. RFS has been a tremendous success,” stated Dinneen. “When the first Renewable Fuels Standard was enacted in 2005 we were 60% dependent on foreign oil and liquid transportation fuels and today we are 45% dependent. That is a consequence of the growth in ethanol… and because the people in this room who produce ethanol day in and day out have been successful.”
Back to Top
Ethanol Plants Provide Abundant Supply of DDGs
As reported by Midwest Producer, Craig Rowles of Carroll, Iowa, says his hog operation benefits from being located near several ethanol plants. This gives Rowles easy access to dry distillers grains (DDGs), an ethanol co-product, which he uses as a major ingredient in his hog rations.
"The amount we use is determined by its market value versus the price of corn, soybean meal and dical," said Rowles, a veterinarian and president of Elite Pork. "As we have gotten accustomed to it, we have increased the amount in some of our rations." Rowles introduces his pigs to DDGs late in the nursery stage and feeds up to 30 percent in the mid-finishing stage. “We aren't getting negative feedback from our packer, so that plan is working,” he added.
Rowles concluded his thoughts on his use of DDGs by stating, "We will continue to watch performance and continue to learn more about DDGs, but so far we are pleased with how our pigs do with DDGs as part of our ration."
Back to Top
EPA Data: U.S. Biodiesel Production Hits 98 Million Gallons in April
According to recently released Environmental Protection Agency (EPA) data, the U.S. biodiesel industry produced a collective 98.36 million gallons in April, down almost 10 million gallons from the previous month, but up much higher from January’s 63.5 million gallons and February’s 77.71 million gallons.
The Renewable Fuels Standard (RFS2) calls for 1 billion gallons of biomass-based diesel to be used this year.
Back to Top
Hawaiian Electric Approved for Biodiesel Contract with REG
The Hawaiian Electric Company has received approval from the Hawaii Public Utilities Commission for an additional three-year biodiesel contract with Renewable Energy Group (REG), the largest biodiesel producer in the nation.
According to REG’s website, the new contract will take effect in July 2012 for Hawaiian Electric’s 110-megawatt combustion turbine generator at Campbell Industrial Park Generating Station. Under the new contract, REG will continue to supply three to seven million gallons of high quality biodiesel processed from used cooking oil and waste animal fats for the generating station. The plant is the nation’s first utility-scale combustion turbine run entirely on 100 percent biodiesel.
“Biodiesel utilization in electric power generation is an important step in helping our country make a move to renewable-based electricity. Most U.S. states now have policies or goals for electric power to be sourced from renewable resources or advanced biofuels, like biodiesel,” stated Gary Haer, Vice President of Sales and Marketing at REG.
Back to Top
EPA Issues Notice to Approve Ethanol from Grain Sorghum
In a Notice of Data Availability (NODA), the Environmental Protection Agency (EPA) proposed that ethanol produced from grain sorghum would qualify as a conventional renewable fuel under the Renewable Fuels Standard (RFS2), and when produced through certain pathways, the feedstock would qualify as an advanced biofuel.
"EPA's analysis shows that grain sorghum, when used to make ethanol at facilities that use natural gas, will meet the lifecycle greenhouse gas emissions reduction threshold of 20 percent required by the Energy Independence and Security Act (EISA) of 2007 for conventional renewable fuel," stated the EPA. "When grain sorghum is used to make ethanol at facilities that use biogas digesters in combination with heat and power technology, it will meet the lifecycle greenhouse gas emissions reduction threshold of 50 percent required by EISA for advanced renewable fuel," added the EPA.
To read EPA’s full NODA click here.
Back to Top
Four Ethanol Plants Install ICM Selective Milling Technology
ICM, Inc. is unveiling its new product, Selective Milling Technology (SMT), installed at four ethanol plants. According to ICM’s website, SMT frees more starch critical for enzyme conversion to sugar, while also positioning customers for new technologies in the development pipeline.
ICM Technical Director for Product Development Dr. Scott Kohl, Ph.D., stated, “The process of using energy to free more starch for enzyme conversion to sugar can involve breaking larger starch particles into smaller ones; or breaking/rolling starch away from fiber, protein, or fats. Our SMT allows plants to maximize this added energy by targeting the particles that can benefit from it most.”
The four plants that have installed the technology are Lifeline Foods LLC, Kansas Ethanol LLC, Green Plains Shenandoah, and Lincolnland Agri-Energy LLC.
Back to Top
POET Now Producing Its Trademarked Corn Oil at 14 Facilities
Fourteen plants in the POET network have now installed POET’s patent-pending corn oil technology, Voilà, bringing total annual production capacity to about 235 million pounds per year, enough to provide feedstock for approximately 31 million gallons of biodiesel.
POET has been selling Voilà corn oil into biodiesel and feed markets since January 2011, and strong demand for the product has prompted plans to upgrade the majority of the plants in the POET network.
POET CEO Jeff Lautt said, “We’ve had a great response from Voilà customers, and I’m excited to be able to expand production to meet more of the demand.”
Of the 14 updated plants, seven are located in Iowa towns: Ashton, Coon Rapids, Corning, Emmetsburg, Gowrie, Jewell, and Hanlontown.
Back to Top
Marco Andretti Promotes Ethanol in Iowa
 |
Marco Andretti, Photo: Domestic Fuel |
The 2011 Iowa Corn Indy 250 winner, Marco Andretti, spent time pumping fuel and signing autographs at E85 pump promotions at four different Kum & Go locations across Iowa on June 4.
The tour was done in promotion of the 2012 Iowa Corn Indy 250 race set to be held Saturday, June 23, at the Iowa Speedway in Newton. Andretti said of the race, “It’s an awesome track and an awesome event.” He added, “Last year, I started 17th and was able to work my way to the front, which was a lot of fun. This year, we have one goal at Iowa: win again. This time, we’ll do it with the Iowa Corn logo on the No. 26 RC Cola car.”
This year, the series will be showcasing E85 at top-notch speeds and professional venues around the world.
Back to Top
Enzyme Plant Construction Completed near Blair, Neb.
According to the Omaha World-Herald, the leading producer of the enzymes used to produce biofuels, Novozymes, is celebrating the completion of its latest plant in eastern Nebraska.
Novozymes invested $200 million in the plant located just south of Blair, Neb. The plant, which employs 100 people, will be utilized to produce enzymes that help break down the starch in corn or another feedstock, an important part of ethanol production.
Back to Top
ProGo Blender Pump Grand Opening
On Friday, June 15, ProGo will be celebrating its blender pump grand opening.
All ethanol customers on June 15 from 11:00 a.m. to 1:00 p.m. will receive a $2.00 C-Store food coupon. ProGo, located at 155 S. Rerick (Hwy 59) in Primghar, Iowa will now be offering E10, E20, E30, and E85.
Back to Top
