January 2015 Ethanol Producer Magazine

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www.EthanolProducer.com INSIDE: SPOTLIGHT ON IOWA’S ETHANOL INDUSTRY Keeping Tabs on Quality Benchmarking In Plant Labs Page 28 And Software Takes Data To the Next Level Page 36 JANUARY 2015

description

Lab Management Issue (Spotlight on Iowa)

Transcript of January 2015 Ethanol Producer Magazine

Page 1: January 2015 Ethanol Producer Magazine

www.EthanolProducer.com

INSIDE: SPOTLIGHT ON IOWA’S ETHANOL INDUSTRY

Keeping Tabs on Quality

BenchmarkingIn Plant Labs

Page 28

AndSoftware Takes Data

To the Next Level Page 36

JANUARY 2015

Page 2: January 2015 Ethanol Producer Magazine

THIS HOLIDAY SEASON, WE HAVE A LOT TO BE THANKFUL FOR.

THANKS FOR BEING SOME OF THE FIRST RETAILERS TO OFFER E15.

Growth Energy commends CENEX, MAPCO, Minnoco, Protec Fuel and Petro Serve USA for their pioneering

spirit and their efforts to expand consumer access to higher blends of renewable fuels. They are offering

consumers a choice and savings at the pump, while at the same time supporting a homegrown industry that

supports farmers across the country.

Together we’re making progress towards the next generation of sustainable, renewable fuels.

Learn more at GrowthEnergy.org

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JANUARY 2014 VOLUME 21 ISSUE 1CONTENTS

DEPARTMENTS

6 EDITOR'S NOTE Labs Leverage Benchmarking, Data By Tom Bryan

7 AD INDEX

10 THE WAY I SEE IT World Needs a

Wake-up Call By Mike Bryan

11 EVENTS CALENDAR

12 VIEW FROM THE HILL The Year That Wasn't By Bob Dinneen

14 DRIVE Moving Forward, Not Backward By Tom Buis

16 GRASSROOTS VOICE Not So Fast By Brian Jennings

18 GLOBAL SCENE EU Must Keep Benefi ts of Sustainable Biofuels in Sight By Robert Wright

20 BUSINESS BRIEFS

22 COMMODITIES

24 DISTILLED

50 MARKETPLACE

Ethanol Producer Magazine: (USPS No. 023-974) January 2015, Vol. 21, Issue 1. Ethanol Producer Magazine is published monthly by BBI International. Principal Offi ce: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offi ces. POSTMASTER: Send address changes to Ethanol Producer Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

QUALITY CONTROL Benchmarking the Ethanol Lab Lab managers aim for quality assurance in test methods and results By Susanne Retka Schill

28SOFTWARE

Putting Data to Work Analytical software can help harness lab data for increased profi tability By Holly Jessen

36

FEATURES

PHOTO: ROBERT MORRISSEY

ON THE COVER

PROFILE

Spotlight on Iowa The ethanol industry has had a deep impact on the Hawkeye State

By Holly Jessen

42

Amanda Huber, process manager, Front Range Energy LLC.

Page 5: January 2015 Ethanol Producer Magazine

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FOR INDUSTRY NEWS: WWW.ETHANOLPRODUCER.COM OR FOLLOW US: TWITTER.COM/ETHANOLMAGAZINE

The high-performance liquid chromatograph (HPLC), the spendy countertop machine at the heart of every ethanol plant’s quality assurance/quality control process is just one of many high-tech gadgets in the toolkits of lab personnel. In this month’s cover feature, “Benchmarking the Ethanol Plant Lab,” however, we learn that HPLC and other analytical equipment like gas chromatographs, pH meters, moisture analyzers and hydrometers are only as accurate as their calibration, stability and method of use allows them to be. This page-28 story, written by EPM Senior Editor Susanne Retka Schill, gives us insight into how lab managers check their equipment, and their practices, through test result comparisons and other validation techniques.

Our lab theme continues in “Putting Data to Work,” on page 36, as we learn how data analysis software helps ethanol plant labs harness information that may otherwise be lost or ineffectively stored. Whether a lab manager is calculating average fermentation rates, optimizing enzyme dosage or troubleshooting a production slowdown, lab data software can really help. The cool part, reports EPM Managing Editor Holly Jessen, is the helpful visuals the software quickly generates.

Also this month, we’re excited to bring you the fi rst of six ethanol state spotlights that will be sprinkled into Ethanol Producer Magazine throughout the year. We begin with Iowa, the nation’s No. 1 ethanol and distillers grains producing state. The Hawkeye State’s ethanol story begins on page 40.

EDITOR'S NOTE

Labs Leverage Benchmarking, Data

Tom BryanPresident & Editor in [email protected]

Letter to the Editor:I recently read “Clear Sign of Confusion,” a feature in the December issue of Ethanol Producer Magazine regarding perceived confl icts

between the revised Hazard Communication Standard and the Hazardous Materials Identifi cation System. Although it is true that the HMIS Hazard Rating is different from the GHS Hazard Classifi cation category, American Coatings Association

and OSHA do not believe there is a confl ict. The Globally Harmonized System hazard classifi cation category is not meant to provide hazard communication information to the user. However, the HMIS Hazard Rating is meaningful for each type of hazard, and gives the employee information on the severity of the hazard associated with the use of the substance. The GHS hazard classifi cation category is not required on the label, so the employee who uses HMIS will not see this perceived confl ict. The use of HMIS requires training on the meaning of the HMIS Hazard Rating and the required employee responses, which will mitigate any perceived confusion. ACA has developed a new HMIS Implementation Manual (fourth edition) to guide employers in continued effective use of this important compliance tool, which will be available at the ACA website by the end of the year.

Sincerely, Stephen WieronieyAmerican Coatings Association

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JANUARY 2015 | Ethanol Producer Magazine | 7

VOLUME 21 ISSUE 1

TM

EDITORIALPresident & Editor in Chief

Tom Bryan [email protected]

Vice President of Content & Executive EditorTim Portz [email protected]

Managing EditorHolly Jessen [email protected]

Senior EditiorSusanne Retka Schill [email protected]

News EditorErin Voegele [email protected]

Copy Editor

Jan Tellmann [email protected]

ARTArt Director

Jaci Satterlund [email protected]

Graphic DesignerRaquel Boushee [email protected]

PUBLISHINGChairman

Mike Bryan [email protected]

CEOJoe Bryan [email protected]

SALES

Vice President of OperationsMatthew Spoor [email protected]

Business Development DirectorHoward Brockhouse [email protected]

Senior Account Manager/Bioenergy Team LeaderChip Shereck [email protected]

Account ManagerJeff Hogan [email protected]

Sales & Marketing DirectorJohn Nelson [email protected]

Circulation ManagerJessica Beaudry [email protected]

Traffic & Marketing CoordinatorMarla DeFoe [email protected]

Customer Service Please call 1-866-746-8385 or email us at [email protected]. Subscriptions to Ethanol Producer Magazine are free of charge to everyone with the exception of a shipping andhandling charge of $49.95 for anyone outside the United States. To subscribe, visit www.EthanolProducer.com or you can send your mailing address and payment (checks made out to BBI International) to: Ethanol Producer Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to 701-746-5367. Back Issues, Reprints and Permissions Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at 866-746-8385 or [email protected]. Advertising Ethanol Producer Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Ethanol Producer Magazine advertising opportunities, please contact us at 866-746-8385 or [email protected]. Letters to the Editor We welcome letters to the editor. Send to Ethanol Producer Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or email to [email protected]. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

COPYRIGHT © 2015 by BBI InternationalPlease recycle this magazine and remove inserts or samples before recycling

ADVERTISER INDEX

2015 International Fuel Ethanol Workshop & Expo 472015 International Biomass Conference & Expo 482015 National Ethanol Conference 9BBI Project Development 50BetaTec Hop Products 19 Buckman 24Cereal Process Technologies 32CHS Renewable Fuels Marketing 17Conveyor Engineering & Manufacturing 21CPM Roskamp Champion 31Direct Automation 38-39DuPont Industrial Biosciences 52Eco-Energy Inc. 33Fagen Inc. 3Fluid Quip Process Technologies, LLC 45Foundation Analytical Laboratory 26Gamajet 30Growth Energy 2Husch Blackwell LLC 27Hydro-Klean LLC 25ICM, Inc. 11INTL FCStone Inc. 34J.C Ramsdell Enviro Services, Inc. 20Jatrodiesel, Inc. 46JC Cross Company 43Nalco, an Ecolab Company 35Novozymes 15Phibro Ethanol Performance Group 8POET-DSM Advanced Biofuels 51Renewable Fuels Association 49Tower Performance, Inc. 44Tramco, Inc 13U.S. Water Services 5Vogelbusch USA, Inc. 42

Page 8: January 2015 Ethanol Producer Magazine

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The G20 Leaders’ Summit was held here in Brisbane, Australia, in November. World leaders came in with their delegations from 20 of the leading economically developed countries, plus an entire entourage of reporters and other stakeholders. Having never witnessed such a gathering before, I must say it was impressive.

Vladimir Putin, who was destined to be taken to task over the Ukraine and the MH17 airline disaster, arrived late and left early. The big stars, of course, were President Obama, arriving on Air Force One, and Xi Jinping of China. As he is the leader of one of the largest emerging economic superpowers, many were anxious to dance with Jinping, so to speak.

Australia’s Prime Minister Tony Abbott was determined not to put global warming on the G20 agenda. Obama, however, while speaking at the University of Queensland to a large group of students, politicians and others, placed it squarely on the agenda, and other countries followed suit.

The Great Barrier Reef (GBR as its known here), one of the Seven Wonders of the World, is being decimated by rising sea temperatures and a host of other factors. “Here, a climate that increases in temperature will mean more extreme and frequent storms, more flooding, rising seas that submerge Pacific islands,” Obama said. “The incredible natural glory of the Great Barrier Reef is threatened.” He went on to say that that while he had not yet had the opportunity to visit the GBR he wanted to be sure it was preserved for his daughters to visit. “I want them to be able to bring their daughters or sons to visit and I want it there 50 years

from now.” The auditorium thundered with applause. I’m mentioning this because here in Australia, in the U.S. and

countries around the world, we still have those who believe that global warming is a hoax. Science is not on their side, the facts are not on their side and the environmental degradation continuing to be levied on our world as a result of those who bury their heads in the sand is quickly becoming irreversible.

Renewable fuels like ethanol are just a part of the solution, but an important part. When I see the U.S. EPA dragging its feet, politicians acting on behalf of special interests and even the environmental minister of Australia supporting large increases in mining and dredging along the GBR, it infuriates me.

If Western countries invested hundreds of billions, even trillions of dollars developing renewable energy projects around the world, which in turn would employ millions of people and at the same time help protect the global environment, that to me would make much more sense than new pipelines, more oil exploration and mining for coal. It’s not just America, the entire world needs a wake-up call before it’s too late.

That’s the way I see it.

World Needs Wake-up CallBy Mike Bryan

Author: Mike BryanChairman, BBI International

[email protected]

THE WAY I SEE IT

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National Ethanol ConferenceFebruary 18-20, 2015Gaylord Texan Resort &Convention CenterGrapevine, TexasThe NEC provides attendees with timely information on critical regulatory, marketing and policy issues facing the ethanol industry. Experts will speak to the current market situation, and address how we as an industry can continue to grow through innovation, new technologies and feedstocks, and by developing more diverse and global markets.202-289-3835 | www.nationalethanolconference.com

International Biomass Conference & ExpoApril 20-22, 2015Minneapolis Convention Center, Minneapolis, MinnesotaOrganized by BBI International and produced by Biomass Magazine, this event brings current and future producers of bioenergy and biobased products together with waste generators, energy crop growers, municipal leaders, utility executives, technology providers, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all biomass industries. 866-746-8385 | www.biomassconference.com

International Fuel Ethanol Workshop & ExpoJune 1-4, 2015Minneapolis Convention Center, Minneapolis, MinnesotaThe FEW provides the global ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. The FEW is the largest, longest running ethanol conference in the world—and the only event powered by Ethanol Producer Magazine.866-746-8385 | www.fuelethanolworkshop.com

National Advanced Biofuels Conference & ExpoOctober 26-28, 2015Hilton OmahaOmaha, NebraskaProduced by BBI International, this national event will feature the world of advanced biofuels and biobased chemicals—technology scale-up, project finance, policy, national markets and more—with a core focus on the industrial, petroleum and agribusiness alliances defining the national advanced biofuels industry.866-746-8385 | www.advancedbiofuelsconference.com

EVENTS CALENDAR

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Like the “Who Shot JR” season of “Dallas,” the U.S. EPA apparently thought 2014 was just a dream that never happened. When the agency awoke in November and announced that it would not publish the renewable volume obligation (RVO) rule for 2014 until sometime in 2015, refi ners and ethanol producers alike were left to watch reruns of government dysfunction. But the year did happen, and quite a year it was. Ethanol production and blending broke records. Exports picked up. E15 and E85 sales increased. And the fi rst cellulosic ethanol gallons were produced. So here, in satiric tribute to the year that wasn’t, is our annual in and out list.

The Year That Wasn’t By Bob Dinneen

VIEW FROM THE HILL

OUT INAnnual RVOs Multiyear RVOs

EPW Chairman Boxer EPW Chairman Inhofe

Phantom fuels D3 RIN production

Infographics RFA advocacy app

DOT-111 Rail Car Rail delays

Corn/DDG exports to China Ethanol going global

Ice bucket challenges E85 pump photo pontests

Food vs. fuel canard Record corn production and yield

Big Food complains about $8 corn Big Food Complaints about $4 corn

E15 hyperbole E15 warranty coverage for two-thirds of new vehicles

Computer models predicting ILUC Real world data showing no ILUC

$100-per-barrel oil Saudi oil production quotas

EPA RVO hearings Congressional RFS hearings

API RFS lawsuits AFPM RVO Lawsuit

Infrastructure need Prime the Pump

Midterm elections 2016 presidential campaign

API anti-RFS ad campaign Fuels America pro-RFS ad campaign

RFA Chairman Neill McKinstray RFA Chairman Randy Doyal

Author: Bob DinneenPresident and CEO,

Renewable Fuels Association202-289-3835

Page 13: January 2015 Ethanol Producer Magazine

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Page 14: January 2015 Ethanol Producer Magazine

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Homegrown, renewable biofuels like ethanol offer a secure, stable alternative to foreign oil that saves consumers up to $1.09 per gallon at the pump. The ethanol industry provides job security for nearly 400,000 Americans, price security at the pump and energy security for all.

For renewable fuels to succeed, however, the administration needs to provide an equally stable policy environment. The uncertainty that has been introduced around the renewable fuel standard (RFS) is devastating to biofuels investment and innovation. The RFS is our nation’s most successful energy policy in the past 40 years, the only policy to ever have loosened the oil industry’s stranglehold on the liquid fuels marketplace and the only policy that will help us kick our dangerous addiction to foreign oil.

It is of critical importance that the U.S. EPA moves forward, not backward in meeting the goals of the RFS as it reworks the 2014 renewable volume obligation rule. I commend EPA for listening to all stakeholders and acknowledging that the proposed rule was flawed, and I commend you all for stepping up to the plate, submitting comments and making your voices heard. The decision to not finalize the rule is a win for the renewable fuels industry, and we wouldn’t have been able to do it without your hard work and support. Although we are still surrounded by uncertainty, one thing is sure—it is important to take the time to get both the volumes and the methodology right for 2014 and beyond. The RFS enables competition that would benefit us all and would give consumers the sorely needed ability to choose a fuel that meets their price and performance needs.

It’s time for competition. It’s time for choice. And it’s also time to stick a fork in the tired food vs. fuel myth. We’re about to produce yet another record corn crop, global food prices recently hit a four-year low and ethanol production volumes are near the highest ever recorded. Clearly, the success of the industry is not harming anyone’s grocery bill. In fact, a 2013 World Bank study demonstrated that the primary driver

of increased global food costs is the rising price of energy, not higher farm commodity prices or ethanol production. It outlined how crude oil prices are responsible for more than 50 percent of the increase in food prices since 2004, a full year before the enactment of the RFS. This analysis has been validated by the USDA and countless other objective economic studies.

Likewise, the ethanol industry is not driving up prices in the feed store. Only 17.5 percent of net corn bushels are used for renewable fuels because only the starch in the corn is used to produce ethanol. The rest is returned to the food chain in the form of a competitively priced, nutritious animal feed for cattle, hogs and poultry. As a result, both the corn and livestock industries are thriving, not in spite of one another, but because of one another. Since the enactment of the RFS in 2005, livestock production has gone up, livestock prices have gone up and the margin between livestock values and the cost of feed has grown appreciably.

In addition to providing livestock producers with feed, the ethanol industry provides American consumers with the ability to choose a high-performance, low-cost fuel that is grown here at home. Under the RFS, our dependence on foreign oil has been cut almost in half, from 60 percent to 33 percent. And, instead of sending nearly a billion dollars a day overseas, we are investing right here at home. The RFS is essential to our nation’s energy security, national security, environment and economy. The impact of the policy can be seen across the nation—in rural communities where farmers can once again earn a living doing what they love, in the cleaner, bluer skies out the window and in the wallets of consumers who are saving substantially at the pump. Let’s keep moving America forward.

Author: Tom BuisCEO, Growth Energy

[email protected]

DRIVE

Moving Forward, Not Backward By Tom Buis

Page 15: January 2015 Ethanol Producer Magazine

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Page 16: January 2015 Ethanol Producer Magazine

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Not So Fast By Brian Jennings

I frequently remind members of the American Coalition for Ethanol that they are the best ethanol lobbyists. For the cynics out there, I don’t say this to make people feel good. I say it because it’s the truth.

Before joining the ethanol industry, I worked for a U.S. senator on Capitol Hill. During that time, we met with thousands of people on energy and agriculture issues, from lobbyists sporting cuff-links and polished wingtip shoes to constituents with dirt under their fi ngernails and scuffs on their boots. (Digression: I’m a lobbyist. No cuff-links, but I confess to a pair of shiny shoes. It’s all the rage to condemn lobbyists, but we have an important job to do. Just like any other profession, some lobbyists are overpaid and not very effective; others are pretty darn good at their jobs). While the farmers with dirt under their fi ngernails and ranchers with scuffs or other stuff on their boots who we met with didn’t know what a quorum call is, they knew how the decisions we made in Washington, D.C., would impact their families, neighbors and communities. Their personal experiences were persuasive. The lobbyist’s talking points were not.

We need look no further for evidence that authentic grassroots advocacy can overcome a horde of overpaid lobbyists than to the U.S. EPA’s decision before Thanksgiving to reconsider its proposed reduction of the renewable fuel standard (RFS).

While there were rumblings, we had scored some points in trying to deter EPA from its indiscriminate cuts, most of the signs pointed to EPA taking an unprecedented (and probably unlawful) approach to changing the RFS. Big Oil lobbyists thought they had bullied the Obama administration into completely rewriting the 2014 RFS so oil companies could escape their legal responsibility to offer fuels like E15 and E85 to consumers. With feet kicked up on their desks, oil lobbyists were on the verge of uncorking the champagne. But you didn’t give up, and in the words of Lee Corso on ESPN’s “College GameDay,” EPA said “not so fast” to Big Oil. Thanks to your letters, comments and emails to EPA, your phone calls to members of Congress and your support of ACE, grassroots

advocacy prevailed, if even temporarily. EPA announced it would reconsider its ill-advised plan to reduce the RFS based on the so-called blend wall. Instead, the agency said it would fi nalize the 2014 standard in 2015, when it will also announce plans for setting the 2015 and 2016 blending volumes.

It’s a case of “power by people” overcoming Big Oil’s war chest. ACE and others asked you to write EPA and tell them your story about why the RFS is important. Many of you told the administration about how ethanol has reenergized your hometowns. Others discussed the jobs and economic benefi ts of ethanol. A lot of you emphasized the clean air benefi ts of ethanol or the legislative history of the RFS. It worked. The White House and EPA realized their proposal would hurt rural America, cause pain at the pump for consumers and send innovation in advanced biofuels overseas. They also appear to have recognized their method for changing the RFS was inconsistent with legislative history and the Clean Air Act.

I jest at Big Oil lobbyists being on the verge of uncorking champagne, but our short-term victory is no cause for celebration. At this stage, it isn’t entirely clear if EPA will abandon its fl awed blend-wall methodology for setting future RFS volumes. The 114th Congress is sworn in this month and calls from those oil lobbyists to repeal the RFS will intensify. Powered by people persuasive and authentic, like you, ACE stands ready to reengage EPA and work with the new Congress to ensure the RFS serves as a tool to provide market access for higher blends of ethanol.

Author: Brian JenningsExecutive Vice President

American Coalition for Ethanol605-334-3381

[email protected]

GRASSROOTS VOICE

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JOB #: 53528 Print Scale: NoneCLIENT CODE: CHST03 Version: NoneCLIENT: CHS

Description: Renewable Fuels Ad, Seamless EthanolPublication: Ethanol ProducerDocument Name: 53528_2014_CHS_AD_Renewable-

Fuels_EP_FLpg_4c_v3.indd

Proof #:

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3

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Bleed: 9” x 11.375”Trim: 8.5” x 10.875”Live: 8” x 10.375”Gutter: NoneFold Type: None

Date: 4-22-2014 3:24 PMUser Name: Janni, BrianPrevious User: Nielsen, KaraInDesign Version: InDesign CS6Notes: None

Cyan Magenta Yellow Black

GCD: Dustin Black AD: KB CW: CP AE: AK/JC PM: John Zegoski PA: Kara NielsenTE

AM

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Page 18: January 2015 Ethanol Producer Magazine

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EU Must Keep Benefits of Sustainable Biofuels in SightBy Robert Wright

These are still uncertain times for the European ethanol industry. Discussions in the EU are well underway to revise the current EU biofuels policy, which expires in 2020, and the EU has not indicated what type of biofuel rules, if any, will exist after 2020. This policy uncertainty is the biggest challenge facing European ethanol producers.

The current framework, introduced in 2009, heavily influences and governs the ethanol market in Europe. In 2012, just three years after EU policy support was confirmed for biofuels, however, the European Commission introduced a major U-turn by proposing to cap the use of conventional biofuels at current consumption levels.

The Commission justifies the proposed cap as necessary to address indirect land use change (ILUC), incentivize biofuels with better greenhouse gas (GHG) performance and limit biofuels’ role in food prices. How an arbitrary cap will solve any of these issues is still open to question.

As an industry, we agree with the need for effective regulations to ensure that biofuels used in Europe meet the highest possible sustainability standards. In Europe, however, these biofuels are already heavily regulated and must meet mandatory and stringent sustainability criteria.

We are proud that the ethanol we produce in Europe is the most sustainable in the world. But Europe must be careful not to “throw the baby out with the bath water” by punishing all conventional biofuels equally.

The proposed cap is an ineffective policy tool because it does not differentiate between biofuels on the basis of GHG emission performance: the very purpose of the ILUC exercise.

A clear measure to incentivize biofuels with good environmental performance would be to establish a separate target for renewable ethanol in petrol. Such a target would help promote ethanol, and its proven benefits of high GHG savings and low, or no ILUC.

The current policy discussions are important, but everybody agrees they have lasted too long. In Europe, biofuel investments have either dried up or European companies are investing elsewhere where the policy framework is more stable. It is now time to close the debate, move forward and provide the clarity and certainty that present and future investors need.

This diverse, versatile and young industry has a valuable role to play in decarbonizing transport, but the EU must put in place a clear, dedicated policy framework that includes long-term ambitions and policy stability. Such a framework will provide companies with a clear reason to invest, incentivize investments and go a long way to both realizing the potential of advanced biofuels and contributing to Europe’s bioeconomy.

In January, the European Parliament commences its second reading of the ILUC proposal. This is a crucial opportunity for legislators to regain investor confidence in the sector by producing a stable, long-term policy that will realize the benefits of ethanol, both conventional and advanced.

Author: Robert WrightSecretary General,

ePURE, the European Renewable Ethanol [email protected]

GLOBAL SCENE

Page 19: January 2015 Ethanol Producer Magazine

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The Canadian Renewable Fuels As-sociation board of directors has appointed Andrea Kent as its president. Kent previously held several senior roles in communications, media relations and issues management, in-cluding vice president of communications at the CRFA. She has nearly a decade of leader-ship experience in numerous federal depart-ments and crown corporations. Kent’s ap-pointment follows the departure of W. Scott Thurlow.

Kelly Davis, director of regulatory affairs at the Renewable Fuels Association, and Jim Miller, vice president and chief economist

at Growth Energy, were appointed to the U.S. Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Com-mittee. The committee provides advice on the development and administration of programs and policies to expand renewable energy and energy efficiency exports.

Archer Daniels Midland Co. has named Juan R. Luciano as its next CEO, effective Jan. 1. He was also elected to the company’s board of directors in November. Prior to tak-ing over the role of CEO, Luciano served as president and chief operating officer (COO) responsible for leading and running ADM’s global operations. Luciano will succeed Patri-cia Woertz, who will continue in the role of ADM’s chairman of the board and is expected to retire in May 2016. Luciano joined ADM in 2011 as executive vice president and COO, and was named president in February 2014. He will be the ninth chief executive in the company’s 112-year history.

Mascoma Corp. has completed the sale of its yeast business to Lallemand Inc. As part of the transaction, Lallemand has ac-quired the Mascoma company name and trademarks, all of its proprietary and patented yeast strains and associated technologies, as well as its entire research and development team located at its facility in Lebanon, New Hampshire. Lallemand and Mascoma have been partners in the successful commercial-ization of the TransFerm line of products, in-cluding TransFerm and TransFerm Yield-plus.

Valero Energy Corp. has announced that Bill Klesse will step down as chairman of the board, effective Dec. 31. Klesse became CEO at the end of 2005 and was named chairman of the board in 2007. He stepped down

as CEO on May 1, 2014. He spent his entire 45-year career with Valero and its predecessor companies.

Growth Energy has announced a multi-year commitment and new partnership with the National Future Farmers of America Orga-nization to build on critical projects that pre-pare today’s students to become tomorrow’s leaders in American agriculture.

BUSINESS BRIEFS People, Partnerships & Deals

Luciano Woertz

Klesse

Kent Thurlow

Davis Miller

Page 21: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 21

zxczIowa Gov. Terry Branstad will serve as chairman of the 2015 Governors’ Biofuel Coalition, while Missouri Gov. Jay Nixon has been announced as vice chairman. In 2016, Nixon will transition to the role of chairman. The 33-state bipartisan organiza-tion was founded more than 20 years ago to increase the use of ethanol-based fuels, de-crease the nation’s dependence on imported energy resources, improve the environment and stimulate the national economy.

The National Asso-ciation of Professional Woman has honored Dar-lene Gonzalez as 2014 Professional Woman of the Year for her leadership in sales. Gonzalez current-ly serves as regional sales manager at Lallemand

Biofuels and Distilled Spirits.

Jeff Render has been named utilities manager for Aventine Renewable Energy Inc. He is respon-sible for overseeing efficient operation of the new natu-ral gas boilers, cogeneration electricity turbine systems and water treatment system

at the company’s 100 MMgy wet mill plant in Pekin, Illinois. He has returned to Pekin after serving as maintenance manager for the past year to support the restart of Aventine’s two dry mill facilities in Aurora, Nebraska.

Joule has named Serge Tchuruk as presi-dent and CEO. He will lead the company in its next phase of development aimed at commercializa-tion. Tchuruk was ap-pointed to the company’s board of directors in July

and previously served as chairman and CEO of Alcatel and Total SA. He succeeds Paul Smith, who resigned after holding the posi-tion of president and CEO since early 2014.

Sloenis, formerly Ashland Water Technolo-gies, has received U.S. Patent No. 8,841,469

B2 for the use of chemical additives to im-prove the separation of corn oil in the ethanol production process. The company first filed a provisional U.S. patent in March 2011. The patent was issued in September. In addition to yielding more corn oil, Solenis’ additives, mar-keted as Dimension corn oil extraction aids, also reduce solids in the oil.

asdfTom Erickson has been named director of the Energy & Environ-mental Research Center in Grand Forks, North Dakota. Erickson has been serving as interim director since July. He previously served as associate director

for business, operations and intellectual prop-erty at the EERC.

U.S. Water Services Inc. has launchedthe rst in a new series of products developedfor corn oil recovery. COR NS is anew nonsorbitol-based product line designedto aid in the extraction of corn oilas a coproduct for biofuels plants.

Nixon Branstad

Gonzalez

Render

Tchuruk

Erickson

Page 22: January 2015 Ethanol Producer Magazine

22 | Ethanol Producer Magazine | JANUARY 2015

Nov. 25—Though historically volatile, natural gas prices traded in a relatively tight range from July through mid-October, from $3.72 to just over $4. In light of last winter’s price gymnastics, however, it was almost inevitable the tepid cycle would burst. Since the end of October, prompt natural gas traded between $3.54 and $4.54. From July through October, the average daily trading range of the prompt contract was 10.6 cents. In November, it more than doubled to 21.6 cents.

So what’s driving this volatility, and do we expect it to settle down? The answer to the first question is easier than the second. Markets are jumpier in light of last winter’s experience and less robust inventories. With heating a critical factor, winter got off to a cold start with a December-like blast of cold in November. The natural gas market is extremely sensitive to 11- to 15-day weather forecasts. Unfortunately, models vacillated between warmer- and colder-than-normal weather from one day to the next, implying substantially increased or decreased consumption, and ultimately manifesting as increased price volatility.

Contributing to forecast instability are the broad environ-mental parameters that the weather models attempt to capture. This summer’s observations of Pacific sea surface temperatures

were statistically indicative of a weak El Nino, introducing a substantial amount of complexity rather than increasing certainty. With the weak El Nino predicted to hold sway through February, lower-than-normal stor-age inventories and the stark memory of last winter, volatility in the natu-ral gas market is likely to continue at least through the end of the year.

Natural Gas Report

Corn Report

Nov. 25—Corn markets found support from positive end-user margins and a strong cash market. Spot ethanol remains choppy, with margins following. The nearby spot ethanol market is allowing ethanol processors to be more aggressive in buying corn that, so far, has been slow to enter the marketplace. This year’s record harvest has been daw-dling, thus giving producers plenty of time to store corn strategically.

USDA’s November supply and demand estimates surprised the trade with a 0.8 bushel lower yield estimate to place production at 14.407 billion bushels. With old crop carryout of 1.236 billion bushels, total supply is estimated at 15.668 billion bushels, up from 14.782 billion a year ago. Demand was calculated at 13.660 billion bushels. Ethanol use projections increased by 25 million bushels to 5.150 billion bushels. Ex-ports remained steady at 1.75 billion bushels, down from last year as larger global stocks and a stronger U.S. dollar reduces demand. The feed sector is expected to use 5.375 billion bushels versus 5.13 billion bushels a year ago. The end result is a carryout just above 2.0 billion bushels. World corn carryout jumped from 137.78 million metric tons a year ago to 172.99 million metric tons, thus limiting U.S. exports.

The trade will look to the January USDA report for the final U.S. yield. In 2009, the previous record year, yield estimates from November to final increased by 1.8 bushels, the biggest increase since 1992 when the yield increased by 2.2 bushels per acre.

Volatility returns to natural gas market by Ben Straus

Strong cash market, user margins support corn prices by Jason Sagebiel

COMMODITIES Prices & Market Analyses

Page 23: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 23

DDGS Report

Ethanol Report

Nov. 25—Short-term evidence that overall ethanol supplies started to slip lower from summer and early fall highs has sparked some increased and wide-spread support through the ethanol com-plex. That has led to a buying frenzy that has been hard to contain. Since the end of September, ethanol futures have ral-lied nearly 65 cents per gallon, sparked by concerns about long-term availability of product. In addition, buyers faced chal-lenges in securing enough spot product

to keep demand in check. While ethanol futures prices have surged higher, gasoline prices and the entire energy complex have remained under pressure. This has quickly changed the dynamic between ethanol and gasoline markets and placed ethanol prices at a premium to RBOB gasoline futures. The volatile start to the winter season may only be the tip of the iceberg as far as where prices may venture through the next several months. It is likely to be a rough and turbulent ride.

Nov. 25—As Thanksgiving ap-proached, markets rebounded a little, as colder-than-normal weather induced more domestic feeding demand. The higher pro-tein prices that existed at the end of Octo-ber did abate a little in November, but the tightness is still there and DDGS is being purchased as an alternative. Buyers also feel as though a Chinese solution is right around the corner, and don’t want to get caught with an empty pipeline, so they are buying with cautious optimism.

In spite of buyer optimism, there still is not a pathway established to easily im-port containers into China. Discussions are in progress and there have been windows of encouragement from the Chinese gov-ernment. Imports are still occurring, ac-cording to the monthly statistics, and trad-ers are hopeful of that continuing.

Bulk exports have been on the rise, but during the month it was confirmed

that some boats bound for Turkey were turned away, ostensibly because of a non-approved genetic trait. Since that news, though, we still see boats being loaded on a fairly regular basis, so it appears that it has not hampered additional trades.

Rail movements domestically are still slow, but buyers have gotten used to it and are either ordering appropriately, or are us-ing other products. Truck prices locally are still a wide discount to rail, which is a big benefit to Midwestern feeders, and inclu-sion rates are still high.

Looking ahead, weather is becoming a bigger part of the pricing picture, and the cold and snow in places like Buffalo, New York, are sure to affect the run times of ethanol plants whose ethanol railcars are trapped out there. Also, any Chinese news is sure to affect future prices.

Regional Ethanol Prices ($/gallon)Front Month Futures (AC) $2.0900Region Spot RackWest Coast 2.710 2.700Midwest 2.650 2.557East Coast 2.550 2.699

SOURCE: DTN

Regional Gasoline Prices ($/gallon)Front Month Futures Price (RBOB) $2.056Region Spot RackWest Coast 2.013 2.232Midwest 1.988 2.627East Coast 2.083 2.647

SOURCE: DTN

DDGS Prices ($/ton)LOCATION Jan 2015 Dec 2014 Jan 2014Minnesota 95 95 210Chicago 125 100 245Buffalo, N.Y. 130 130 220Central Calif. 195 169 288Central Fla. 160 145 274

SOURCE: CHS Inc.

Corn Futures Prices (Dec Futures, $/bushel)Date High Low CloseNov 24, 2014 3.72 3/4 3.65 1/2 3.67 1/2Oct 24, 2014 3.65 3.52 1/4 3.53 Nov 25, 2013 4.26 1/2 4.22 1/4 4.24 3/4

SOURCE: FCStone

Cash Sorghum ($/bushel)Location Nov 25,

2013Oct 24, 2014

Nov 20, 2014

Superior, Neb. 4.20 3.63 4.21Beatrice, Neb. 4.00 3.28 3.68Sublette, Kan. 4.19 3.30 3.55Salina, Kan. 4.35 3.70 4.18Triangle, Texas 4.22 3.48 3.81Gulf, Texas 5.30 5.03 5.43

SOURCE: Sorghum Synergies

Natural Gas Prices ($/MMBtu)LOCATION Nov 25,

2014Aug 31,

2014Nov 25,

2013NYMEX 4.40 4.07 3.79NNG Ventura 4.48 3.93 3.86Calif. Citygate 4.48 4.39 3.97

SOURCE: U.S. Energy Services Inc.

U.S. Ethanol Production (1,000 barrels)Per Day Month End Stocks

Sep. 2014 919 27,577 18,660Aug. 2014 925 28,665 18,471Sep. 2013 852 25,564 15,986

SOURCE: U.S. Energy Information Administration

DDGS market rebounds as winter weather returns

by Sean Broderick

Supply concerns accelerate buying interest

by Rick Kment

Page 24: January 2015 Ethanol Producer Magazine

24 | Ethanol Producer Magazine | JANUARY 2015

DISTILLED Ethanol News & Trends

The U.S. Energy Information Adminis-tration has published updated ethanol plant production capacity data. As of Jan. 1, 2014, the EIA reports the U.S. was home to 187 operating fuel ethanol plants with a combined 13.68 billion gallons of capacity. According to the EIA’s data, 2014 capacity was down slight-ly when compared to the prior year.

The EIA’s data is broken down by PADD (Petroleum Administration for De-fense District). PADD 2, which encompasses the Midwest, has the most ethanol production

capacity, with 167 plants and more than 12.5 billion gallons of annual capacity. PADD 1, which includes the East Coast, features three plants with a combined 260 MMgy capac-ity. PADD 3, which includes the Gulf Coast, has five ethanol plants with a combined 442 MMgy capacity. PADD 4, which includes the Rocky Mountain region, is home to five etha-nol plants with 190 MMgy capacity. Finally, PADD 5, which includes the West Coast, features seven plants with a combined 285 MMgy capacity.

EIA updates fuel ethanol capacity data

The U.S. Court of Appeals for the District of Columbia recently denied a petition of re-view filed by the American Petroleum Institute and other groups challenging the E15 misfueling mitigation rule published by the U.S. EPA in June 2011. In its judgment, the court said the petition-ers do not have standing in the case because “they cannot show that their members have suffered or are threatened with suffering an injury in fact that is traceable to the regulation and redressable by a favorable decision.”

Growth Energy called the court’s decision a victory for ethanol and the American motorist. “To continue to achieve the success of the renew-able fuel standard, Growth Energy led the fight for E15, which is now being sold by over 90 retail-ers in 14 states,” said Tom Buis, CEO of Growth Energy. “This decision is important because it continues to uphold the choice and savings for the American motorist with E15.”

Court rejects challenge to E15 misfueling regulation

SOURCE: U.S. ENERGY INFORMATION ADMINISTRATIO

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EIA fuel ethanol plant production capacity Number of

plantsNameplate

capacity (MMgy)2014 187 13,6812013 193 13,8522012 194 13,7282011 193 13,614

Page 25: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 25

EIA updates fuel ethanol capacity data

Fuels Institute predicts increase in E85 sales

The Fuels Institute recently published a study that predicts a substantial increase in E85 sales over the next several years. At minimum, the report forecasts E85 sales will double by 2023. Depending on specific market circumstances, however, the report predicts E85 sales could experience an in-crease of up to 20-fold over the same time frame. Overall, the report projects that E85 sales could increase from 196 MMgy in 2013 to between 400 MMgy and 4.4 bil-lion gallons by 2023.

Between 2,685 and 3,349 retail fuel stations in the U.S. currently sell E85, ac-counting for up to 2.2 percent of the na-tion’s 152,900 retail fuel stations. As of the beginning of the year, there were 14.2 mil-lion 16 million flex fuel vehicles (FFVs) registered in the U.S. By 2023, the report forecasts that 8,907 to 11,151 stations could be selling E85 in the U.S., with 25.9 million FFVs on the road. Theoretically, if every FFV were to exclusively use E85, sales could reach as high as 31.9 billion gallons.

DISTILLED

A public comment period on the Oregon Clean Fuels Program closed in November. The program, which is similar to California’s Low Carbon Fuels Standard, requires a 10 percent reduction of green-house gases from transportation fuels over a 10-year period.

The first phase of the program was adopted in December 2011. In February 2014, the Oregon De-partment of Environmental Quality was directed to draft rules for the second phase of the program. The comment period on those rules is now closed. While the DEQ is moving forward to implement the pro-gram, it is currently subject to a statutory Dec. 31, 2015, sunset date, which, if not lifted by the state leg-islature, will prohibit implementation of the program after the end of the year.

The Renewable Fuels Association weighed in during the comment period, requesting several changes be made to the program. Among the RFA’s comments was a recommendation that indirect ef-fects be withheld from the program’s life-cycle inten-sity analyses for various fuel pathways.

Oregon moves forward with Clean Fuels Program

SOURCE: FUELS INSTITUTE

E85 stations by state (as of June 2014) Minnesota 282Illinois 226Michigan 197Iowa 185Indiana 176Wisconsin 131Ohio 113Missouri 103Texas 103California 92

Page 26: January 2015 Ethanol Producer Magazine

26 | Ethanol Producer Magazine | JANUARY 2015

The U.S. Energy Information Admin-istration recently published data indicating U.S. rail traffic increased 4.5 percent during the 12-month period ending in October 2014.

Increased movement of grain repre-sented the biggest commodity increase in rail traffic during the first 10 months of the year, with a 15 percent increase. That equates to 878,824 car loadings.

According to the EIA, rail car load-ings of oil and petroleum products totaled 672,118 tank cars during the first 10 months of the year, a 13.4 percent increase when compared to the same period of 2013.

While coal is the largest volume com-modity moved by rail, with 4.9 million car loadings during the first 10 months of the year, the volume of coal transported by rail increased by only 0.3 percent.

Rail service delays, caused in part by traffic congestion, have been an ongoing concern for the U.S. ethanol and agricultural industries. Since October, the U.S. Department of Trans-portation’s Surface Transportation Board has been requiring Class I railroads to file weekly status reports. The EIA said the filings will lead to a better understanding of commodity movement by rail and potential issues associated with increased demand.

DISTILLED

EIA data highlights rail traffic increases

Enerkem partners for projects in China and Europe

Enerkem Inc. has announced several agree-ments in recent months that could results in the development of biorefinery projects in China and Europe.

In late October, the company made three separate announcements regarding development plans in China, including the signing of a memo-randum of understanding with Shanghai Envi-ronmental Group Co. Ltd. to develop a project partnership to jointly develop a facility in China that would convert municipal solid waste (MSW) into biofuels and chemicals. The company also an-nounced an agreement with Shanghai Marine Die-sel Engine Research Institute to develop a partner-ship to jointly build a waste-to-biofuels facility in China. A third agreement was made with Qing-dao City Construction Investment Group Ltd. to develop a project partnership to jointly build an MSW-to-biofuels facility in Qingdao.

In November, Enerkem announced it has signed an agreement with AkzoNobel to develop a project partnership to explore the development of waste-to-chemical facilities in Europe.

Increases in rail carloads of select commodities (Jan-Oct 2014 vs. Jan-Oct 2013)Coal 0.30%

Nonmetallic minerals 8%Chemcials 1%Metallic ores and metals 3%Grain 15%Motor vehicles and parts 4%Farm products (excluding grain) & food

2%

Petroleum and petroleum products

13%

Forest products 3%Other 6%SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION

Page 27: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 27

Bluefi re Renewables Inc. has an-nounced a new source of funding for its proposed 19 MMgy cellulosic ethanol plant in Fulton, Mississippi. In October, the com-pany announced it has received a letter of intent from the Export Import Bank of China to provide up to $270 million in debt fi nancing for the project. The announce-ment came less than a month after BlueFire reported it has signed a master engineering, procurement and construction contract with China International Water and Electric for the project.

Arnold Klann, CEO of BlueFire, said that the fi nancing is currently expected to close at the end of the fi rst quarter.

In late 2013, Bluefi re had announced plans to reduce the capacity of the project to 9 MMgy and integrate wood pellet pro-duction. Those plans have now changed, with 19 MMgy of ethanol capacity once again included in the project. Klann said BlueFire is still considering adding wood pellet capacity to the site, but indicated those plans have not been fi nalized.

BlueFire receives LOI from China EXIM bank

Purdue researchers increase digestibility of distillers grains with calcium oxide

DISTILLED

Purdue University scientist Jon Schoon-maker and his colleagues have shown that small amounts of calcium oxide can neutralize the acid in distillers grains, increasing the digestibility of the feed in cattle diets.

According to the researchers, distillers grains retains the sulfuric acid used to control the starch fermentation during ethanol production. Since the feed is highly acidic, it is diffi cult for cattle to fully digest. According to Schoonmaker, adding calcium oxide directly to the ration mix at a rate of 1 percent of the total dry matter has been shown to make distillers grains less acidic, more digestible and therefore more nutritious, leading to better growth performance among test cattle.

Tests have evaluated different dietary distill-ers grains concentrations, as well as different fi ber sources. Overall, the groups that were fed distill-ers grains with the calcium oxide supplement per-formed better than the other test cattle, consum-ing less feed while maintaining a steady increase in body weight.

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October 2014: Signs EPC contact with China International Water and Electric; Receives LOI from China EXIM; reestablishes 19 MMgy capacity

October 2013: Reconfi gures project; new capacity 400,000 tons of wood pellets, 9 MMgy cellulosic ethanol

November 2011: Signs MOU with China Huadian Engineering Co. Ltd. to fi nance Fulton project

June 2011: Completes initial site preparation for 19 MMgy Fulton project

November 2010: Receives construction permits for Fulton project

Page 28: January 2015 Ethanol Producer Magazine

28 | Ethanol Producer Magazine | JANUARY 2015

SAMPLE PREP: Front Range process manager Amanda Huber checks the pH of several samples. Used heavily for process monitoring, pH meters are calibrated at least once per week.PHOTO: ROBERT MORRISSEY

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JANUARY 2015 | Ethanol Producer Magazine | 29

Quality control depends on accurate test results, but how do ethanol labs control their own quality? By Susanne Retka Schill

QUALITY CONTROL

Quality assurance/quality control (QA/QC) standards for the front and back end of an ethanol plant are clearly set out by long-established federal grain inspection standards, ASTM standards and customer con-tracts. The process in the middle is a different story, however.

Not only are there no agencies or contracts prescribing testing procedures and equipment, but the process is inherently variable. On the surface, corn is quite uniform, but starch con-tent does vary somewhat from fi eld to fi eld, and defi nitely from region to region and from year to year. Those variations, though often slight, affect enzyme dosing. The fermentation process itself is accomplished by a living organism, and the goal is

to keep yeast happily producing ethanol under op-timal conditions. But, the same environment that keeps yeast productive is also ideal for bacterial growth, detected through monitoring acetic and lactic acid levels. To keep the process humming along effi ciently, it is absolutely essential that po-tential problems be caught early.

Thus, every ethanol plant has a system in place to pull samples every few hours for testing, searching for key indicators that the process is moving along as expected. Many tests are done in-house by the ethanol labs and others by third-party labs, often on composite samples sent on a weekly basis. Plant operators and lab technicians work under the supervision of a lab manager tasked with making sure the equipment, test methods and general procedures are up to the task. At the heart of fermentation monitoring is a complex piece of equipment that costs $50,000-plus—the high performance liquid chromatograph (HPLC).

Benchmarkingthe Ethanol LabBenchmarkingthe Ethanol LabBenchmarking

Page 30: January 2015 Ethanol Producer Magazine

30 | Ethanol Producer Magazine | JANUARY 2015

It can separate, identify and quantify mul-tiple compounds in a sample in about 20 or 30 minutes. The ethanol lab uses it to monitor carbohydrates, ethanol concen-tration, glycerol, lactic and acetic acids, and more.

The HPLC may be the workhorse, but it is far from being the only sophisti-cated piece of equipment in the lab. Gas chromatographs are used for analyzing finished ethanol, pH meters and mois-ture analyzers are used to monitor several points of the process, hydrometers mea-sure proof. Microscopes are used to mon-itor yeast health. To get accurate results, each of the instruments needs to be in

working order, calibrated and used prop-erly. Lab managers routinely use check samples, statistical analyses and bench-marking to evaluate just how good their lab procedures are.

“Being able to measure the quality of your methods and benchmarking against another method or against a known stan-dard puts you in a position to know when the numbers start changing, if it’s an an-alytical issue or if it could be a process issue,” explains Amanda Huber, process manager at Front Range Energy LLC, a 50 MMgy plant in Windsor, Colorado. “If you have no way of knowing it’s an ana-lytical issue, you have no choice but to at-

TRAINED EYE: Huber reviews acidity titration with a plant operator at Front Range. The color of the titration indicator is very subjective, so it is important all operators correctly identify the end point of the titration for an accurate measurement.PHOTO: ROBERT MORRISSEY

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JANUARY 2015 | Ethanol Producer Magazine | 31

tribute it to process and you start making changes to the process. Sometimes that’s not going to improve things.”

Huber uses several methods to check the accuracy of the equipment and test-ing methods in the lab she manages. The moisture analyzer used to measure the solids in mash or moisture levels in dis-tillers grains can be difficult to get stan-dardized, she explains. “We do a weekly comparison with the oven method in trip-licate, keeping an eye on how the instru-ment and methods are performing. If it’s been within 3 to 5 percent agreement with the oven method for months and months, and suddenly it’s 8 percent, we’ll investi-gate.”

Going StandardClose attention is given to calibrat-

ing the HPLC. Huber explains that when she began managing the lab at the plant startup, nearly nine years ago, they used a single standard for calibration, as recom-mended. After several months, she found that it wasn’t doing an accurate job of pre-dicting alcohol production and yield. “At that point, we added a second calibration standard just for the ethanol peak, and definitely saw better correlation of our production with our analytical,” she says. She now uses a custom-made standard along with a common standard and three data points for the HPLC. Because the HPLC is used to monitor fermentation

MONITORING FERMENTATION: Front Range Energy plant manager, Phil Turchen, puts samples in the HPLC, the process quality control instrument most heavily used to monitor fermentation and, sometimes, distillation. Calibrating the HPLC using several standards, covering each of the eight to 10 analytes measured, is necessary for accurate measurements throughout the entire fermentation process.PHOTO: ROBERT MORRISSEY

Page 32: January 2015 Ethanol Producer Magazine

32 | Ethanol Producer Magazine | JANUARY 2015

and measure the success of fermentation at the fi nishing point, it is helpful to calibrate at more than one concentration of each an-alyte, she explains. “We’ll measure anywhere from zero to 15 percent by weight ethanol and I think a lot of people are only doing a calibration at 12 percent. So you don’t know

your instrument response to concentrations other than that.”

Sabrina Trupia, research director at the National Corn-to-Ethanol Research Cen-ter, explains the core of the center’s work is monitoring fermentations, relying upon HPLC data. “With HPLC, running several

standards is a great idea, once a day, just to check on the stability of the instrument,” she says. NCERC’s lab uses fi ve standards each with different compositions of the eight components being tested for in the process, and runs a check sample every 10 or 20 samples. If the numbers from one production sample are abnormal, before any changes to the process are made, she sug-gests fi rst checking the HPLC by running a check sample, rerunning the questionable production sample, and then running an-other check sample. If all three numbers are outside the norm, it’s an indicator the ma-chine is off. If results from the two check samples return true numbers, then it’s time to pull a second production sample to verify something is truly wrong with the process and begin investigating causes.

In addition to ongoing education through seminars such as the annual Fuel Ethanol Laboratory Conference, ethanol lab managers turn to instrument manu-facturers and vendors for help in keeping their lab running at top performance. Some single-ownership plants work together in buying clubs and build on that working re-lationship to form a peer group of lab man-agers who periodically meet to share tips. Plant QA/QC teams can also participate in round robins organized by NCERC or enzyme or yeast vendors. The round robin organizer prepares samples that are sent to each participating plant. Each lab runs the specifi ed tests and sends the results to the organizer who compiles them all and re-ports back with comparison information.

Turning to StatisticsAnother method for monitoring lab

performance is through statistical analysis. QA manager Erin Robertson at GreenField Ethanol-Johnstown in Ontario explains GreenField’s QA departments use measure-ment systems analysis for their instruments.

QUALITY CONTROL

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Page 33: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 33

“We use historical data, so we know how that machine should be performing from day to day. We use statistical process con-trol charts. If you’re falling above or be-low a certain line or limit, it lets you know something has changed within your sys-tem.” Periodically, the QA/QC team orga-nizes a gage repeatability and reproducibil-

ity (R&R) exercise. Everybody who uses the instrument participates, roughly 25 people at the plant, including operators and lab personnel. Each person runs the same sam-ple multiple times (demonstrating repeat-ability) and the results from all participants are compared (showing reproducibility). “It

lets you know how much of the variation is coming from the different operators us-ing it,” Robertson explains, “and how much from the actual measurement itself and the interaction between those.”

Darrell Veres, plant manager at the 65 MMgy Canadian plant, says this can help

PROOF CHECK: A plant operator at Front Range checks a sample for proof using a hydrometer. Not only is the instrument certifi ed, but the thermometers used for the temperature adjustment need to be certifi ed in order to get a reportable fi nal product certifi cation.PHOTO: ROBERT MORRISSEY

QUALITY CONTROL

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Page 34: January 2015 Ethanol Producer Magazine

34 | Ethanol Producer Magazine | JANUARY 2015

LOGGING THE WORK: Multiple fermentation samples are pulled every few hours, with a series of tests done to monitor fermentation progress and watch for potential issues. Recordkeeping on each step on the way is key to traceability. PHOTO: ROBERT MORRISSEY

identify when additional training is needed. “If the variation is too wide, then you go back and retrain the operators to get that variation as tight as you possible can,” he says. Veres serves as the mentor for the QA peer group, which includes Robertson and the QA managers from GreenField’s three other plants in Ontario and Quebec.

“When it comes to validating test methods and benchmarking, how we’re do-

QUALITY CONTROL

‘With HPLC, running several standards is a great idea, once a day, just to check on the stability of the instrument.’

Page 35: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 35

ing, it’s invaluable to have somebody in the same position at another plant where you can bounce ideas back and forth,” Robert-son adds. “We can do interlab cross checks and round robins, where we’re testing the same sample and making sure we’re getting the same answer. We can tweak our meth-ods based on that.”

Time to Standardize the Middle?

With the goal of QA/QC programs being to tighten up the variation—both in the process and in the lab results—Trupia raises the question of whether it’s time for the ethanol industry to adopt a common set of good practices for the lab. “What I see now is a lot of variability between different ethanol plants,” she explains. The Renew-able Fuels Association publishes a guide for quality assurance and quality control, but while it establishes basic principles that could be applied to process testing, the QA/QC guidelines focus on end products—eth-anol, distillers grains, corn oil and carbon dioxide. “I understand the concern on pro-ducing quality coproducts and ASTM com-pliant ethanol,” she says, adding that best practices for QA in the middle process are equally important.

Guidelines for the process would help establish best practices for sampling fre-quency, type of sampling, recommended replications, how often to run check sam-ples, how to determine whether the staff is properly performing manual tasks such as pipetting or titrating, and more.

She also thinks the industry would ben-efi t from more benchmarking activities so ethanol labs can compare reporting results on their process testing. “ASTM does this for ethanol,” she points out. “They send you a monthly sample and you test for all the requirements—ethanol, methanol, wa-ter, specifi c gravity, and so on. They send you your answer and where you stood,” she

explains. “It’s very helpful. If your metha-nol is systematically high over several tests and you’re using the method that ASTM is prescribing, then there’s something wrong with your instrument, or your calibration. There’s something that is not working. You

can trace it back, if you have good records on your lab upkeep.”

Author: Susanne Retka SchillSenior Editor, Ethanol Producer Magazine

[email protected]

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Page 36: January 2015 Ethanol Producer Magazine

36 | Ethanol Producer Magazine | JANUARY 2015

SOFTWARE

Page 37: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 37

JMP, a data analysis software from SAS Institute, can help ethanol producers get a jump on plant efficiency and profitability. By Holly Jessen

SOFTWARE

There’s no question ethanol plant lab workers do a lot of testing and record a lot of data. Some companies, however, put a higher premium on harnessing data.

Jenny Forbes, manager of new product development for Phibro Etha-nol Performance Group, believes that JMP (pronounced jump) could help give ethanol plants an edge in this area. While some of Phibro’s customers use JMP, the majority simply use Microsoft Excel, meaning data is manually entered into an Excel document, Forbes says. In some cases, nothing more is done with the information. “They collect a lot of data that just gets filed away, month after month after month,” she says.

For some of these plants, analyzing the data might simply mean calculat-ing average fermentation rates. “The average isn’t going to tell you statistical significance, average isn’t going to throw out the outliers and make some com-parisons in the same way this software does,” she says. “I think you lose the whole picture, or the investigative picture, if you just rely on Microsoft Excel.”

One key constraint is time. Many ethanol plant lab employees literally have no time to spare to train for and implement a new software, says Forbes, who was an ethanol plant lab employee in the 2000s.

“If you have people on staff that have time to dedicate to data analysis, yes, I think this would be a very valuable tool,” she says of JMP. “There are a

Putting Data to WORK

Page 38: January 2015 Ethanol Producer Magazine

38 | Ethanol Producer Magazine | JANUARY 2015

(605) 428-4300www.Direct-Automation.com

with a PAYBACK for ETHANOL PLANTS

Direct Automation has a related product that is newly breaking into the market. PI in the Sky is a software that can be used with or without JMP, to store plant information in the cloud, which is viewable to ethanol plant customers on a custom dashboard, says Paul Zweifel, president of Direct Automation.

The product is now in use by two ethanol plants and another four will be using it by the end of the year. The company hopes it will have eight to 10 PI in the Sky customers by the end of next year. As the company’s customer base grows, it plans to add benchmarking to the its services.

Although PI in the Sky does offer some analytical tools, JMP is stronger in that area, Zweifel says. What Direct Automation’s software offers that JMP doesn’t is the ability to automatically pull data from multiple sources, such as the plant’s distributed control system, equipment in the lab and even corn price information pulled off the Internet, to name a few. “We create the data sources that JMP would then use to analyze,” he says.

It also provides ethanol plants with a single platform to enter and store other plant data, like operator logs (which are often scribbled down in paper log books), fi nancial data or even board of director reports. It is then compiled in one place, so various data sets can be compared. “It brings a whole new context to data collection and reporting,” he says. “There’s nothing else out there that currently aggregates all the data sources in the plant that are meaningful to a plant manager or an operations manager and puts them all in one reporting function.”

One example of data PI in the Sky can pull together is average enzyme rates, total slurry solids and the name of the operator who did the enzyme dosing. “We can tell you which operators might need additional training,” he says.

Pulling It All Together

PI in the Sky software in use at an ethanol plant. PHOTO: DIRECT AUTOMATION

Page 39: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 39

lot of people out there, working at an etha-nol plant, that have zero time to spare. And for them it wouldn’t serve any purpose at all, because it’s time-consuming.”

That’s where vendors like Phibro and Novozymes, which also utilizes JMP, come into play. Phibro uses JMP to help its cus-tomers with evaluating trial data or assisting with troubleshooting ethanol fermentation problems that impact yield. One of the best things about JMP is that, once the data is en-tered into the software, analysis is very fast. “I can make 20 graphs in 30 seconds,” she said. “You can do pretty amazing things with the software, if you know what you are doing.” Another bonus is that, as long as the data is in a compatible format, new JMP users can simply and easily upload the information in their Excel documents to the software.

An annual license for JMP is $1,540 in 2015. JMP Pro, which has additional capabili-ties, has an annual license cost of $14,900, ac-cording to an SAS representative.

Heron Lake BioEnergy LLC, a 60 MMgy ethanol plant in Minnesota, has been utilizing JMP since 2011, says quality control manager Amy Audette, who started working for the company in 2014. She doesn’t know if JMP is becoming more commonly used within the ethanol industry, but she hopes so, she says. Audette also feels the software’s main strengths are the graphs she can create using JMP and the speed with which she can generate them. “These visuals are extremely useful and help to provide quick insight into the plant’s workings,” she says.

One example is when Heron Lake was faced with rising sulfate levels. Audette used JMP to create fermentation data graphs and identifi ed certain dates when sulfate rates peaked. “The result came down to a strong correlation between longer ferm times and higher sulfates,” she says. “The high sulfates were related to the plant slowing down.”

Another time, Heron Lake used JMP to optimize enzyme dosing rates. The end result was using less product without negatively impacting ethanol yield, which adds up to a direct savings, Audette says.

Author: Holly JessenManaging Editor, Ethanol Producer Magazine

701-738-4946 [email protected]

Elevate the VALUE of your DATA to NEW HEIGHTS

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‘There’s nothing else out there that currently aggregates all the data sources in the plant.’

Paul Zweifel

SOFTWARE

Page 40: January 2015 Ethanol Producer Magazine

SPOTLIGHTonSPOTLIGHTI�w�

Ethanol Producer Magazine digs into the details of ethanol production in Iowa and how the industry got started. By Holly Jessen

When Jerry Mohr, president of the Iowa Corn Growers Associa-tion board of directors, talks to pol-iticians, he often reminds them of what happened in Iowa on Oct. 5, 2005. That’s when Iowa corn growers forfeited a billion bushels of corn in one day through the loan defi ciency payment program. “It cost the govern-ment $500 million dollars. That’s when we had farm programs that didn’t work,” he said. “Ethanol was the thing that lifted us out of those government pro-grams and got us off the dole of the taxpayer.”

Another story Mohr likes to tell is about how the industry brought livestock business back to Iowa. Cattle production had left the state and was grow-ing in Texas, where cheap corn was sent by rail. Iowa ethanol production created a demand for corn, which leveled the playing fi eld, and provided distillers grains as a livestock feed.

Small wonder that corn growers like Mohr are ethanol industry supporters. “Our top goal this year is to defend the RFS,” he said of the ICGA, adding that the association also wants to increase E15 availability.

Page 41: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 41

1billion gallonsethanol producedin 2005

32billion gallonsethanol producedin 2008

billion gallonsethanol producedin 2009

Page 42: January 2015 Ethanol Producer Magazine

42 | Ethanol Producer Magazine | JANUARY 2015

ADM’s Cedar Rapids plant starts up,

likely the second wet mill in the

state, after Grain Processing in Muscatine IRFA is

incorporated

1981

Iowa’s first dry mill, Siouxland Energy Co-op in Sioux Center, starts up

2001

2002

2003

IRFA works with state agencies to allow retailers to offer E85

IRFA opens office and hires

full-time staff

2005

2007

Indianapolis 500 runs on E100

Iowa’s renewable fuels infrastructure

law enacted

2008100th E85 pump opened

2008

2010ADM’s dry mill plant in Cedar Rapids starts up, the state’s newest 1st-gen plant 2011

Iowa’s renewable fuelsincentives law enacted

2012A Marion

gas station is the first

to offer E15 in Iowa, second

in the nation

ETHANOLHISTORY LESSON

IowaPROFILE

Page 43: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 43

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PROFILE

The first dry mill ethanol plant to begin operations in Iowa was Siouxland Energy Co-op, which opened its doors to corn in 2001. Bernie Punt, now a field services manager for Noble Mansfield Commodity Services, served as the project manager, first board chairman and general manager for the facility. In the late 1990s, Punt was managing a 10,000-head feedlot for Farmers Co-op Society. Punt came to the conclusion that colocating an ethanol plant with an Iowa cattle operation made good business sense.

After attending a series of meetings about building an ethanol plant in Iowa, he got authorization from the co-op to pursue the idea. He organized a group of people, who ended up as the ethanol plant’s first board of directors, and launched an equity drive. “We sold all of our equity shares in about a month,” he says.

Today, Siouxland is colocated with the feedlot Punt used to manage and has brought big benefits to Sioux Center. “It’s still a farmer-owned ethanol plant,” he says, “We’re very proud of that.”

We’re No. 1!If Iowa were looking for a slogan,

“we’re No. 1” would be appropriate. The

state produces more corn, ethanol and distillers grains than any other U.S. state. Oh, and, it’s also the leading hog and bio-diesel producer. Looking at corn produc-tion alone, Iowa has produced the largest corn crop of any state for almost 20 years. In fact, according to the Iowa Corn Grow-ers Association, Iowa produces more corn than most countries.

Boasting 40 first-generation ethanol plants, five of them wet mills, and three cellulosic ethanol projects, two of which are currently producing, the state has a to-tal ethanol production capacity of more than 3.8 billion gallons a year. The prod-ucts produced at Iowa ethanol plants add-ed up to a gross value of $11.8 billion in 2013, according to a report prepared for

Iowa Corn Usage 2014/2015

Ethanol 935 MB

DDGS from Ethanol Production327 MBOther Processing

290 MB

Total Exports191 MB

Residual Use185 MB

Dairy 17 MB

Beef Cattle 58 MB

Hogs 160 MB

Poultry 51 MB

Other Animals 2 MB

8%

9%

13%15%

42%

Ethanol and distillers grains production is the biggest user of corn grown in Iowa. (Shown in million bushels.) In comparison, numbers for U.S. corn usage put ethanol production at 26 percent and DDGS at 10 percent. SOURCE: USDA AND PROEXPORTER NETWORK

Page 44: January 2015 Ethanol Producer Magazine

44 | Ethanol Producer Magazine | JANUARY 2015

IRFA by ABF Economics, Agriculture and BioFuels Consulting LLP.

Cedar Rapids could well be consid-ered the capitol city of Iowa’s ethanol in-dustry. Archer Daniels Midland Co. has a dry mill and a wet mill at that location. The two facilities have a combined capacity of 240 MMgy. If that isn’t enough, Penford Products has a 45 MMgy wet mill plant there as well. “More corn is processed in Cedar Rapids than any other city in the world,” says T.J. Page, communications di-rector for IRFA.

Blend, Baby The state is ahead of the pack in E15

market penetration as well, with 31 regis-tered E15 stations in 28 cities, according

to the IRFA. That’s more than twice as many E15 pumps than there are in Wis-consin, the state with the second highest number of E15 stations.

Looking at E85 numbers, Iowa has 194 gas stations that sell E85, 87 of which are blender pumps, IRFA says. The most recent Iowa Department of Transporta-tion report puts the number of flex-fuel vehicles in Iowa at nearly 283,000.

The use of midlevel ethanol blends and E85 is on the rise in Iowa, according to the Iowa Department of Revenue. The 2013 annual report showed that the use of blends from E15 to E69 increased more than 158 percent, adding up to more than 5.4 million gallons sold. E85 sales hit an all-time high as well, increasing 18 percent

PROFILE

to the MassesMessage

The biofuels mobile education center is a 45-foot long trailer filled with interactive touch screen computers, educational displays, movies and more, to educate visitors about ethanol and other biofuels.

Page 45: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 45

to a total of 11.1 million gallons sold. The trend is continuing in 2014.

Some ethanol producers in Iowa are skipping the middleman and blend-ing E85 on site and capturing RINs (renewable identification numbers). Al-though not every ethanol plant blending on site is on the list, the IRFA currently publishes data on about seven plants in its monthly wholesale E85 price list-ing service, which it launched last sum-mer. The largest price gap between E85 and gasoline recorded since the service started was June 23, when Absolute En-ergy LLC offered its customers E85 for $1.59 less than the $3.23 OPIS listed regular gas.

The core sponsors are Iowa Corn Promotion Board and the Iowa Corn Growers Association, along with Absolute Energy, Big River Resources, Golden Grain Energy and Homeland Energy Solutions. Shown at left is Iowa's Gov. Terry Branstad, a big ethanol supporter, during a visit to the trailer. With him are Mike Moats, far left, a representative of the education trailer, and Kevin Buckallew, Iowa Corn district field manager. Curt Froyen, project manager, tells EPM: TRAILER WITHOUT BORDERS: The biofuels mobile education center traveled to multiple locations in and out of Iowa in 2014. We began our year at the World Ag Expo in Tulare, California, on Feb. 11 and concluded it with the AAA Texas 500 in Ft. Worth, Texas, on Nov. 11. We did 51 events in 14 states, from out west in California, south to Texas, Arizona, and Kentucky, north to Minnesota and Michigan and east to Delaware and Virginia. We had over 2,500 students and their teachers visit the trailer at college campuses, high schools and ag related student events throughout the Midwest. SWAG: We handed out over 30,000 Koozies (fabric sleeve for beverages) at 12 NASCAR sponsored events, the Knoxville Nationals and the Iowa State Fair. We attended 12 county fairs in Iowa. Over 20,000 people had the opportunity to visit the trailer at three of this year's Great Bicycle Ride Across Iowa events. It would be hard to estimate the total number of visitors for all of our events but it would have to be well over a hundred thousand.

Page 46: January 2015 Ethanol Producer Magazine

46 | Ethanol Producer Magazine | JANUARY 2015

• Uses water, heat and CO2 recycled from Green Plain Renewable Energy’s ethanol plant.• Five acres of greenhouses currently growing algae. • Operating continuously since 2009.

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Going Advanced

Iowa is home to two ethanol plants currently producing cellulosic ethanol and one that is nearing construction completion. An estimated $1.7 billion was invested in biofuels R&D in the U.S. in 2013. Roughly a quarter of that, or about $435 million, was in Iowa, according to the ABF Economics report completed in 2014. Another notable project, seen below, is the commercial-scale algae bioreactors colocated with a corn-ethanol plant.

• Ramping up to 20 MMgy now.• 5 MMgy expansion expected. • About 285,000 tons of biomass will be needed annually. • 30,000 yards of concrete, 1,500 tons of structural steel used in plant.

SOURCE: POET LLC

Poet-DSM Advanced Biofuels Emmetsburg

• Feedstock: corn kernel fiber. • 2 MMgy bolt on to 30 MMgy corn-ethanol plant. • Produces about 6,500 gallons of cellulosic ethanol daily. • Generated 500,000 D3 RINs as of mid-November. • Four jobs added, one for each shift.

SOURCE: QUAD COUNTY

Quad County Corn Processors Galva

• 30 MMgy at full capacity. • Construction completion expected in Q1 2015.• 150 jobs for seasonal collection, transportation and feedstock storage.• 375,000 tons of corn stover gathered yearly.• 500 local farmers will supply feedstock.

SOURCE: DUPONT

DuPont Cellulosic Ethanol LLCNevada

Author: Holly JessenManaging Editor, Ethanol Producer Magazine

701-738-4946 [email protected]

Algae has multiple possible commercial uses, including advanced biofuels, animal feed, nutraceuticals, pharmaceuticals or biomass for energy production. Green Plains says the company is currently evaluating which options would be profitable.

Page 47: January 2015 Ethanol Producer Magazine

JANUARY 2015 | Ethanol Producer Magazine | 47

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Page 48: January 2015 Ethanol Producer Magazine

48 | Ethanol Producer Magazine | JANUARY 2015

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Page 49: January 2015 Ethanol Producer Magazine

Reason 1 – Ethanol and the RFS save us money In 2013, consumers saved between $700 billion and $2.6 trillion*

Reason 2 – RFS means less imported oil Last year, ethanol displaced $48 billion worth of imported oil**

Reason 3 – RFS cuts greenhouse gas emissions Today’s conventional ethanol reduces GHG emissions 34-48%***

Reason 4 – RFS creates jobs The ethanol industry supports 86,000 direct jobs and 300,000 indirect jobs**

Reason 5 – RFS means investment and innovation

The RFS works for everybody

* Energy economist Philip K. Verleger, Commentary, Renewable Fuels Legislation Cuts Crude Prices, pkverlegerllc.com **ABF Economics, “Contribution of the Ethanol Industry to the Economy of the United States,” February 17, 2014.***Wang et al. (2012) using the Department of Energy’s GREET model

5 REASONS to Love the RFS

Page 50: January 2015 Ethanol Producer Magazine

50 | Ethanol Producer Magazine | JANUARY 2015

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Page 52: January 2015 Ethanol Producer Magazine

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