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PHOTO: STOCK OCTOBER 2022 VOLUME 28 ISSUE 10 20 PHOTO: STOCK26 PHOTO: STOCK 40SPOTLIGHTIFFInnovations for the Individual Producer Global biotechnology company IFF is a yeast and enzyme provider. By Katie Schroeder 32 PHOTO: STOCK12 PHOTO: STOCK
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ETHANOLPRODUCER.COM | 5 42109864DEPARTMENTSADINDEX/EVENTSCALENDAREDITOR'SNOTESecuringaFutureforEthanolByKatieSchroederVIEWFROMTHEHILLTheBiggestBiofuelsPolicyDealSince2007ByGeoffCooperGLOBALSCENEUSEthanolExportsonTrackforOneoftheBestYearsonRecordByMackenzieBoubinBUSINESSBRIEFSMARKETPLACE
Ethanol Producer Magazine: (USPS No. 023-974) October 2022, Vol. 28, Issue 10. Ethanol Producer Magazine is published monthly by BBI International. Principal Office: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offices.
20 WithinPOLICYClear
26 SupplyStaPROCUREMENTyingStockedchainconstraints
12FEATURESFIBERMeasuring Up
By Luke GeiverContents ON THE COVER Though
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POSTMASTER: Send address changes to Ethanol Producer Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203. Corn Fiber Ethanol Ethanol made from corn fiber has a low carbon intensity and the potential to generate D3 RINs. Katie Schroeder Sight The California Air Resources Board is working on its latest scoping plan. Katie Schroeder are improving, but ethanol producers still face challenges. Luke Geiver Quality Control Ensuring what’s arriving at the gate is fit for today’s production needs is just one facet of ethanol plant labs. ethanol plant lab technology, standards and strategies have changed, quality issues they test for—such as toxins in corn—have not.
32 EleTESTINGvating
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In August, CARB approved a rule that requires all new cars in California to be zero-emission vehicles by 2035. In the meantime, the state is moving toward the approval of E15 and potentially intensifying its Low Carbon Fuel Standard goals. In “Within Clear Sight,” page 20, Ethanol Producer Magazine chats with policy experts about what these developments could mean for the industry. Brian Jennings, CEO of the American Coalition for Ethanol, emphasizes ethanol’s role in a low-carbon future, saying that “ethanol has a dramatically important role to play in light-duty vehicles.”
Finally, check out “Elevating Quality Control,” page 32, for a deep dive into a vital component of any ethanol plant’s system—the lab. Don Cannon of Green Plains Inc. explains that labs are doing much more than just “testing to aid production,” and have moved toward guaranteeing the quality of an ethanol plant’s inputs and outputs. One of the quality concerns producers may have during harvest season are the presence of mycotoxins in corn, which is addressed in the story. We hope you enjoy exploring the above topics, and we look forward to reporting on progress and impacts of the historic Inflation Reduction Act as it is rolled out.
Editor's Note
Passage of the Inflation Reduction Act was a landmark event for the ethanol industry. Signed into law on August 16, the bill addresses immediate issues within the biofuels industry—such as reinstating and extending tax credits and appropriation of $500 million in funds for the development of biofuel infrastructure—as well as helping solidify a foundation for newer fuels and decarbonization efforts, including sustainable aviation fuel (SAF) and carbon capture utilization and sequestration. In this issue, Ethanol Producer Magazine explores developments in the policy realm, supply chain challenges as well as the evolution of ethanol plant lab practices.
The regulatory landscape surrounding corn fiber ethanol is complex. In “Measuring Up Corn Fiber Ethanol,” page 12, we explore the markets available to corn fiber ethanol, the role of measurement and the monetary value of this product. Mark Yancey, chief technology officer with D3MAX, sees corn fiber as a great opportunity for producers. “I think the ethanol industry really needs to take a look at corn fiber, whether it’s in-situ or separate processing like D3MAX, because it’s extremely profitable,” Yancey says, adding that he believes these cellulosic gallons will be in high demand for SAF in the future.
Another feature not to miss is “Staying Stocked,” page 26, which examines ongoing supply chain issues and means of navigating them, with insight from stakeholders in many different aspects of the ethanol industry, including a plant manager, agriculture economists, an equipment specialist and a benchmarking expert.
6 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022 FOR INDUSTRY NEWS: WWW.ETHANOLPRODUCER.COM OR FOLLOW US: TWITTER.COM/ETHANOLMAGAZINE
ETHANOL PRODUCER MAGAZINE'S STAFF WRITER
Securing a Future forKATIEEthanolSCHROEDER
Our shared goal is clear. Working together, we’re developing solu tions that lead the way toward renewable, ear th-friendly biofuels and a healthier world. Let’s talk solutions. Collaborative partnerships. Sustainable solutions. 84 7- 5 64- 57 70 | cte- global.com
That all changed on August 16, when President Joe Biden signed the Inflation Reduction Act into law. In fact, I believe the IRA marks the most significant federal commitment to low-carbon biofuels since the RFS was expanded a decade and a half ago. Through a comprehensive suite of tax credits and grant programs, the new legislation establishes a clear path forward for innovation, investment and growth in the renewable fuels sector. We were thrilled to see many of RFA’s top legislative priorities included in this package.
We were also pleased by the inclusion of more than $20 billion for agricultural conservation investments and technical assistance. These investments are intended to improve soil carbon, reduce nitrogen losses, and decrease or sequester farm-level greenhouse gas emissions—all of which would have a beneficial impact on the carbon footprint of corn ethanol.
Finally, we believe it is notable that the bill’s electric vehicle incentives includes important energy security safeguards. Specifically, the bill incorporates made-in-America measures to ensure that growth in EVs doesn’t lead to an unhealthy dependence on foreign minerals and offshore manufacturing.
Geoff
8 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022
RenewablePresidentCooperandCEOFuelsAssociation202-289-3835gcooper@ethanolrfa.org
The Biggest Biofuels Policy Deal Since 2007 View from the Hill
When taken together, the IRA’s biofuels and agriculture provisions will create long-term investment certainty and stimulate remarkable technology innovation. Ultimately, it is our belief that these measures will help RFA’s member companies achieve their goal of producing ethanol with net zero carbon emissions well before midcentury. This is a big deal … the biggest since 2007!
It’s been a long time since Congress passed legislation focused on stimulating significant growth and investment in low-carbon renewable fuels like ethanol. How long? Well, to be exact, it’s been 15 years.
For starters, the IRA appropriates $500 million to USDA to provide competitive grants for infrastructure improvements for blending, storing, supplying, or distributing higher biofuel blends like E15 and E85. This provision will offer crucial financial assistance to retailers and marketers who wish to sell lower-cost, lower-carbon fuel blends to their customers.
The bill also extends existing tax credits for cellulosic biofuels, biodiesel and renewable diesel through 2024, then transforms those credits into a single Clean Fuel Production Credit. The CFPC is a technology-neutral tax incentive for the domestic production of clean fuels, including ethanol, which reduces carbon emissions by at least 50% compared to gasoline. The level of the incentive depends on the lifecycle carbon emissions of the fuel, topping out at $1 per gallon for fuels with a net-zero carbon emissions footprint.
In December 2007, Congress passed, and former President George W. Bush signed into law, the Energy Independence and Security Act, which extended and greatly expanded the Renewable Fuel Standard. EISA’s passage was a remarkable achievement for the ethanol industry, and the U.S. biofuels sector would go on to roughly triple in size within in the years following enactment of the legislation. But when it comes to federal biofuels policy, we’ve had a long dry spell ever since 2007.
In addition, the IRA creates the first-ever tax credit for sustainable aviation fuels (SAF). Ethanol-tojet fuel and other SAFs that achieve a 50% GHG reduction compared to petroleum jet fuel are eligible for a $1.25-per-gallon tax credit, which expands to $1.75-per-gallon for SAFs that have net-zero carbon emissions.Thelegislation also extends and modifies the tax credit for carbon dioxide sequestration, popularly referred to as 45Q or the CCUS credit. In addition to extending the deadline for eligibility to 2032, the bill lowers the minimum carbon capture amount required for eligibility and increases the credit value for geological sequestration to $85 per metric ton.
With two months remaining in marketing year 2021-'22, the U.S. has exported nearly 1.3 billion gallons of ethanol, up over 20% year-over-year as COVID-19 restrictions continue to lift, and drivers return to the road. Total exports are up in nearly every top-10 market, apart from India and Peru, according to the USDA Foreign Agriculture Service database. The U.S. Grains Council continuously conducts programs, hosts missions and facilitates conversations with stakeholders in these markets, leading to significant gains in Canada, the EU, U.K. and Japan, and continuing to move U.S. ethanol exports forward.
US Ethanol Exports on Track for One of the Best Years on Record Global Scene
Japan has been one of the most notable success stories for U.S. ethanol this marketing year. The country did not start importing U.S. ethanol until 2018, but since then, Japan has blended ethanol in the form of ETBE, equal to a 1.7 % ethanol blend nationwide. This blend rate lands Japan as a top-10 market for U.S. ethanol. Based on USGC data, exports to Japan have reached 11 million gallons per month, totaling nearly 90 million gallons in marketing year 2021- '22.
ETHANOLPRODUCER.COM | 9
Mackenzie Boubin Director of Global Ethanol Export Development U.S. Grains mboubin@grains.orgCouncil
Canada has remained a top market for U.S. ethanol through the past decade. The country is currently blending an average of 7% ethanol nationwide, and so far this marketing year has imported nearly 372 million gallons, up over 80 million gallons from the previous marketing year. Most recently, the Canadian government released its Canadian Clean Fuel Standard, a regulation that anticipates reaching an average ethanol blend of 15% nationwide by 2030, in response to demands for lower-carbon fuels and bolstered by progressive provincial mandates. Momentum will continue into both the near- and long-term future as CFS implementation begins in JanuaryAnother2023.bright spot is exports to the EU and the U.K., which are up more than 60% and 600% year over year, respectively. These two markets represent a shift within the European energy framework as ethanol continues to be a driving factor in decarbonizing the transportation sector. In September 2021, the U.K. began its transition from a 5% ethanol blend to a 10% ethanol blend to reduce annual carbon emissions by nearly 800,000 metric tons. Already averaging an 8% national ethanol blend rate, the U.K.’s move toward E10 could easily call for 100 million gallons of additional demand for U.S. ethanol.
Other countries to watch are South Korea, India and Indonesia. South Korea has gradually increased imports of industrial grade U.S. ethanol, moving to the third largest market this marketing year. The country currently has no biofuel policy, but presents the opportunity to become a significant fuel grade market in the near Thefuture.USGC remains committed to maintaining a robust industrial market that services biobased chemicals and promotes ethanol as a feedstock solution for acetate and acrylate end uses.
PEOPLE, PARTNERSHIPS & PROJECTS
Inflation Reduction Act passes President Joe Biden on Aug. 16 signed the Inflation Reduction Act. He called the legislation the “biggest step for ward in climate—ever” and stressed that the expansive legislative package will al low the U.S. to boldly take additional steps towards meeting its climate goals. The IRA, in part, establishes new tax credits to support the production of sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen. It also extends and modifies the Section 45Q tax credit for carbon capture and storage (CCS). In addition, the IRA extends several existing tax credits that benefit transportation bio fuels, including the $1 per gallon blend ers tax credit for biodiesel and renewable diesel, which is extended through the end of 2024. The IRA also appropriates $500 million to support the development of biofuel infrastructure. An additional $245 million is appropriated for projects relat ed to the production, blending or storage of SAF.
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On July 26, an important piece of leg islation met a milestone with its introduc tion in the Senate. Sen. Chuck Grassley, along with original cosponsors Sens. Amy Klobuchar, D-Minnesota; Joni Ernst, RIowa; and Tammy Duckworth, D-Illinois; introduced the Next Generation Fuels Act. The bill establishes a high-octane, low-car bon fuel standard that would lower pump prices, reduce greenhouse gas emissions, enable greater engine efficiency, and en courage competition. In addition, the leg islation addresses regulatory impediments that have slowed the commercialization of these fuels and the vehicles that consume them. A similar bill was introduced in the House last year by Rep. Cheri Bustos, DIllinois, and now has 26 cosponsors.
The Renewable Fuels Association first began advocating for the creation of a na tional high-octane, low carbon fuel stan dard in late 2018. As additional lawmakers evaluate this approach, RFA will look for opportunities to advance the bill.
Next inFuelsGenerationActintroducedSenate
BUSINESS BRIEFS
– Dave
• KAAPA Ethanol LLC – Scott
Wayne Garrett, general manager with Chief Ethanol Fuels Inc., was newly elect ed to represent the company on the board of directors for a three-year term. He fills the seat of Duane Kristensen, who retired from Chief Ethanol in 2021.
Bosselman Enterprises Corp., owner of the Nebraskabased Pump & Pantry convenience store chain, was elected as a new member to the board of directors for a three-year term.
POET announced that it has signed a purchase agreement with Savannah Marine Terminal to acquire its rail-to-container transload facility in Savannah, Georgia. The acquisition will include all equip ment and real estate to operate the grain transload facility. The Port of Savannah, one of the highest volume container ports in the U.S., has geographic synergy with several of POET’s key global markets for its animal feed products, including Dakota Gold dried distillers grains and its corn fer mented protein product, NexPRO. The facility will also strengthen PO ET’s shipping process, ensuring even greater traceability and transparency for its customers.POET is currently the 36th-largest container shipper, exporting to more than 20 countries around the world.
The American Coalition for Ethanol announced the re-election of several board members and the election of two new members to the organization’s board of di rectors during its annual business meeting prior to ACE’s 35th annual conference in Omaha,Re-electedNebraska.to the board of directors for three-year terms: Redfield Energy Knecht McPheeters Grain Energy LLC Sovereign East River Electric Power
•
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RandyCooperative–ChrisStuderGard,representing
ACE elects board of directors at annual business meeting
LLC – Troy
POET networkfacility,Savannahacquirestransloadexpandsglobal It’s time CONGRonrestricseaseliminatepermanentotlyonaltionsE15.ESS: Take Ac tion at GrowthEnergy.org/RVPfix
• Absolute Energy LLC – Rick Schwarck • Golden
Mark Yancey, chief technology officer for D3MAX, the technology developer be hind the Ace corn fiber ethanol plant, says the system’s separate production streams make it unique to other alternatives. “From the day we formed the company in 2015, it was our plan to have a process through which we would create the cellulosic ethanol sepa rate from the starch ethanol, and that the two would never cross paths until we measured the amount of cellulosic ethanol produced,” he says.All biofuel producers must fill out an application to qualify for RINs under the RFS. Yancey explains that the terminol ogy can be confusing, as people commonly refer to a Part 80 application as “pathway approval,” when in reality, the pathway al ready exists. “But what they really need is a Part 80 application approval,” he says. “So, if you build a D3MAX plant or you implement an in-situ process, if you want to participate in the RFS program, you have to fill out a Part 80 application. And a Part 80 application tells EPA how the process works, and how you measure or calculate the amount of ethanol or other fuel pro duced. That application is then reviewed and either approved or denied, or they ask for moreAlthoughinformation.”bothin-situ and separate process stream methods can qualify for D3 RINs, many in-situ processors have not pursued, or stopped pursuing, D3 RIN registration, and have instead focused on sending their low-CI, cellulosic-infused D6 gallons to the California market.
PHOTO: EDINIQ
“The industry knows what the EPA needs to approve Part 80 applications, which allow [plants] to generate D3 RINs, but nobody has done that, and it’s been al most three years now [since the agency is sued guidance on its treatment of in-situ processes],” Yancey says. “The other thing is that California, CARB and the Low Carbon Fuel Standard do allow in-situ processes to
Producing corn fiber ethanol alongside standard, D6 RINgenerating corn starch ethanol gives producers an opportunity to produce more gallons at a lower carbon intensity (CI) score.
MEASURING UP CORN FIBER ETHANOL Fiber
MEASUREMENT MECHANICS: Along with third-party labs, developers of in-situ corn fiber ethanol processes have invested heavily in methods of precisely and accurately measuring how much cellulosic ethanol is being produced from the fiber fraction of corn.
ETHANOLPRODUCER.COM | 13
Ethanol made from corn fiber has a low carbon intensity and the potential to generate D3 RINs, but navigating the regulatory landscape to capture its fullest value can be complex.
The current production volume of D3 corn fiber ethanol produced in the U.S. is relatively small. In June 2022, there were 576,022 D3 RINs generated by cellulosic ethanol produc ers—and less than half that volume in July. Corn fiber ethanol fits into the RFS under pathway K, which allows ethanol pro duced from cellulosic content to earn D3 RINs, so long as it meets certain qualifica tions. There are two principal ways to pro duce corn fiber ethanol. One method is to produce it in-situ, meaning that an enzyme or other technology is introduced to break down the corn fiber, producing cellulosic ethanol simultaneous to corn starch ethanol, at same plant. Another way of producing corn fiber ethanol is through extraction of the fiber upstream, manufacturing cellulosic ethanol separately on-site.
Measurement of fiber and starch con tent is one key part of determining qualifica tion for D3 RINs under the EPA’s guidelines for in-situ production facilities. Kristi Plack is the chief science officer at Bion, the par ent company of Soliton, which uses propri etary analytics, or tests, to give producers the defensible, third-party production data they need to run their plant optimally. She says Soliton can also provide information neces sary for in-situ corn fiber ethanol facilities to potentially qualify for D3 RINs. Other processes for corn fiber ethanol production utilize a separate system and do not require the same testing procedure to ac quire D3 RINs. This method of production is to colocate a system with a primary etha nol plant. The plant will feed the fiber into the system, allowing for measurement of the cellulosic ethanol at the end due to the sepa rate process streams. Ace Ethanol LLC, a 58 MMgy corn ethanol plant in Stanley, Wis consin, is currently operating such a technol ogy—and successfully generating D3 RINs.
By Katie Schroeder
Plack says that producers must have starch and cellulosic content values at the beginning and end of the ethanol conver sion process. “They need those results … to enter into the calculator—that is specified in the RFS—so they can get their D3 RIN val ue; that’s why they need the test results, so that they have analytical values to show how much starch and cellulosic content they’re converting,” says TaNeal Boer, technical sci ence director with Soliton. The in-situ producers must test every 500,000 gallons of cellulosic ethanol pro duced, or annually, if they are not produc ing that volume of corn fiber ethanol. This is necessary due to the fact that the precise amount of fiber versus starch varies de pending on the crop. “Corn may be misun derstood; corn is not just corn,” Plac,k says. “And when you’re looking at it from this type of process, every growing year has different things. So, Mother Nature, this year might be super hot and dry, and last year was colder and Fiber wet, so that changes how the corn develops, which changes the composition of that corn.”
14 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022 generate LCFS grants if they ship the etha nol—that cellulosic ethanol—to California.”
Measurement Regulations
Plack explains that the EPA’s regula tions specify the qualifications that testing methods must meet in order to be used for calculating RINS; the two different types of testing are VCSB and non-VCSB methods. “VCSB, which is Voluntary Consensus Stan dard Body, is a method that’s been evaluated by a scientific organization that has its own internal method validation criteria,” Plack explains. “So, that would be like an ASTM, AOAC, AOCS, and those methods are then available for any laboratory in the world to use. If it’s not VCSB, it’s more of a proprie tary-type assay and based on a … scientific peer-review process of the method utilized; meaning other scientists review the method, the application of the method and validate the method in the same manner, yet main taining the confidentiality of the method.”
While producers can go through tests to qualify for D3 RINs, there is no longer a clearly laid out pathway for corn fiber ethanol in-situ production through the EPA. “The in dustry knows that the EPA is not approving
PARALLEL PRODUCTION: The D3MAX process, shown here under construction (left) and in operation (right), separates corn fiber and starch before converting each component into ethanol, and doesn’t require recertification or measurement of cellulose and starch.
PHOTO: D3MAX
ETHANOLPRODUCER.COM | 15 registrations currently,” Boer says. “In the in terim, the industry has shifted focus to LCFS while the EPA is in a holding pattern. The facilities are doing the work to complete the Soliton analytical testing for a LCFS registra tion or an EPA registration. The Soliton test ing regimen utilizes the same process, whether the facility is looking to submit a registration to CARB for their approval or prepare an ap plication for CellulosicEPA.”content and starch are not the only testing information needed by CARB or the EPA to gain credits. There are also engi neering reviews that look into the plant’s oper ation inputs and outputs, which are necessary to qualify for low-carbon fuel credits. “I think the important thing is that the measurement piece gives you the data, but the engineering piece helps show that the operation matches the data that’s coming from that third-party laboratory,” Boer says. “Because they all need
California is a leading market for low-carbon fuels like corn fiber ethanol due to the state’s LCFS and carbon reduction goals. Fuel with a lower CI makes more money in California, whether or not it has a D3 RIN attached to it, Yancey explains. “CARB requires applicants to prove the carbon intensity of their fuel. Then, that carbon intensity determines the value of that fuel,” he says. “It’s a [totally] different approach to EPA’s approach of assigning RINs, and the RINs having measured values.”
Exploring D3 Production
In order to get credit from the LCFS, producers must provide three months—90 days—worth of data to verify their carbon intensity score. CARB has been proactive in approving non-VCSB tests to allow pro ducers to sell into the California market, according to Plack.
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Producers utilizing separate process techniques, such as Ace Etha nol, are able to make money both in the California market and through D3 RINs. As of July 21, a D3 RIN was worth $2.74 per gallon. Yancey explains that a producer utilizing D3MAX will usually sell the D3 RINs to the highest bidder, and then buy a much cheaper D6 RIN, yielding a net gain of around $1.25 per gallon. After accounting for the sale price of ethanol in California and credit from the LCFS, the producer makes almost $4 per gallon.
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Corn fiber ethanol provides producers with an opportunity to use cellulase or other technology, which may assist in the process of ex tracting more corn oil to gain more profit, Boer explains. “If they’re converting more fiber and extracting more oil, they could be decreas ing their gas usage, which is decreasing their carbon footprint and also their cost,” she says. “Now, they’re producing and selling more ethanol gallons and corn oil; it’s a multifaceted benefit from the technology ad dition, whatever that is, to the process for those facilities.”
The D3MAX process has a separate distillation column for the corn fiber ethanol, and measures it using a mass flow meter that is accu rate within 99 %, which the EPA uses to assign D3 RINs. The process doesn’t require recertification or measurement of cellulose and starch. There are pros and cons to each process, Yancey explains. “The pros of D3MAX are, number one, that very high projected profit,” he says. “Highly profitable, quick payback. That being said, the con is that a large part of that is from RIN income and California LCFS credits. Those values go up and down, and are subject to political input and influence.”D3MAX is also able to increase oil recovery from around 0.7 to 0.8 pounds per bushel to around 1.3 to 1.4 pounds per bushel. While an in-situ process produces 1 to 3 MMgy of cellulosic ethanol per 100 MMgy, the D3MAX process is able to produce about 8 MMgy in the same size plant. However, the higher yields of D3MAX come with a higher price tag, Yancey says. D3MAX costs around $25 million, while an in-situ process costs significantly less, while still increasing ethanol yields.If a producer wants to incorporate a corn fiber ethanol process Fiber
CARB and D3 Markets
Experience -
Rapid. Ready. Reliable.
Althoughproviders.implementing corn fiber ethanol production is a complex investment, it has the potential to be an effective and beneficial addi tion to an ethanol plant’s portfolio.
Author: Katie Schroeder
PHOTO: NREL
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“I think the ethanol industry really needs to take a look at corn fiber, whether it’s in-situ or separate processing like D3MAX, because it’s extremely profitable, and cellulosic gallons are going to become very, very in demand for making sustainable aviation fuel,” Yancey adds. “Ace has been approached several times [by potential buyers of] their cellulosic ethanol for various uses that match that low-carbon fuel. It’s one way for the ethanol industry to make cellulosic ethanol with a low CI right now, not in five or ten years—available today.”
into their operations in an in-situ way, Plack recommends selecting an analytical testing pro vider that has experience in ethanol production, and has its testing approved by LCFS programs such as CARB, which has approved multiple different measurement options. She also sug gests that producers discuss technology op tions with their enzyme vendor and other tech nology
GREEN GAUGING: Last year, Ethanol Producer Magazine reported that researchers at the National Renewable Energy Lab were working on a possible improved method of cellulose measurement in corn fiber ethanol. Here, an NREL technician inserts a fiber sample into a reactor.
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Contact: katie.schroeder@bbiinternational.com
The California Air Resources Board is working on its latest scoping plan, which could potentially intensify Low Carbon Fuel Standard targets and boost ethanol use in state—especially if E15 gets approved.
While more ag gressive CI targets could lead to more ethanol demand in California, Jennings has some concerns about the “idiosyn crasies” of Califor nia’s management of the LCFS in recent years. He explains that CARB has recently favored electric vehicles (EVs) over lowcarbon liquid transportation fuels, and recently announced that it will phase in a total ban on the sale of gasoline-powered cars by 2035. However, a University of
20 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022 Policy
California’s Low Carbon Fuel Standard has been a piv otal piece of regulation for the ethanol industry for many years, helping to make the state a top-shelf market for ethanol. In 2022, the California Air Resources Board was due for a scoping plan, which is done every five years. In doing so, CARB is exploring the option of increasing car bon reduction goals for the LCFS. The proposed goals, as of early August, were an increase from 20% carbon intensity (CI) reduction by 2030 to a 25 or 30% CI reduction in the same timeframe. “The current California Low Carbon Fuel Stan dard calls for a 20% carbon intensity re duction in transportation fuel by 2030, but today, the fuels being sold in the Califor nia marketplace are exceeding the carbon intensity reductions that are established in the law,” says Brian Jennings, CEO of the American Coalition for Ethanol. Jennings explains what these changes to the LCFS goals could mean for the ethanol industry. “We’re pretty confident that, if they do this, it could be very posi tive for ethanol,” he says. “It could mean greater demand for ethanol in the nation’s most important fuel market.”
By Katie Schroeder
WITHIN CLEAR Jennings
Understanding why CARB performs half-a-decade scoping plans puts poten tial changes to the LCFS in regulatory context. “Really, the scoping plan that CARB develops in five-year intervals is the master plan for greenhouse gas re duction and other related programming in California,” says Graham Noyes, man aging attorney at Noyes Law Corp. and executive director of the Low Carbon FuelsNoyes’Coalition.law firm specializes in fuel and carbon law, and he works primarily on California transportation, fuel, envi ronmental attribute and clean fuel stan dard programs, as well as the Renewable Fuel Standard. He explains that the need for the scoping plan came from Califor nia’s 2006 Global Warming Solutions Act, or AB 32, which requires CARB to release a report every five years on the state’s efforts in reducing GHGs, and ex plicitly focus on how effectively these ef
forts are working to reduce California’s GHG emis sions to 1990 levels.
Scoping Plan Background
ETHANOLPRODUCER.COM | 21 SIGHT
The goal of AB 32— to get to 1990 GHG levels by 2020—was met more than three years ahead of schedule. The next tier is to get to 40% below 1990 emissions levels by 2030— set by SB 32—followed by achieving energy carbon neutrality by 2045, set by an executive order by former Gov. Jerry Brown. To meet the net zero goal, Noyes explains that the state has determined that it needs to eliminate the use of fossil Noyes
California Institute of Transportation study funded by the California legislature found that it was impractical to get all in ternal combustion engines off the road by even 2045, and instead advised that the government replace fossil fuels with biobased fuels alongside EVs.
California is one of the largest and most important markets for E85 in the U.S., but E15 isn’t legal in the state. Jennings ex plains that though E85’s presence is great in terms of its ethanol volume and price
E15 Opportunities and EV Challenges
“Whether it’s the advanced clean cars program, the zero EVs program, or all the building electrification programs that we have—efficiency programs—there are lit erally hundreds of programs, and these all get built into the scoping plan,” Noyes says. “And so, in regard to biofuels, from the bio fuels perspective, what was most significant was CARB identifying again that the LCFS is really the most important program in the fuels sector, and one of the most important programs in the transportation sector.”
Sustainable Aviation Fuel in California Alcohol-to-jet has been a major talking point in the ethanol industry, and Califor nia could be a key market for sustainable aviation fuel (SAF) in the future. A recent letter from Gov. Gavin Newsom to CARB requested setting a 20% clean fuels target for the aviation sector. “We are eagerly pursuing any new market, and the aviation fuel market has emerged as one where I think ethanol as a feedstock fuel could play a very important role in supplying … SAF, absolutely,” Jen ningsAlthoughsays. SAF provides a great op portunity for ethanol producers, Jennings is cautious of narratives that relegate almost all future ethanol use to the “hard-to-elec trify” space, and place too much emphasis on electrification as the chief solution to climate change. “I think that’s nonsense, I think ethanol has a dramatically important role to play in light-duty vehicles—where ethanol only comprises a little over 10% of the market today—and we should be push ing 20, 30% of that market, minimum,” he says. “We have a lot of growth potential in the light-duty vehicle market, and I don’t in tend to ever cede that entirely to EVs” California’s goals run parallel to those of several airlines, which have committed to pursuing a certain percentage of SAF— from an array of raw materials—by various set dates. Cellulosic ethanol, including corn fiber ethanol, has value as a potential feed stock for the production of SAF. Compa nies like Gevo, SAFFiRE Renewables and LanzaJet have projects underway to pursue SAF production at commercial scale. “Obviously, alcohol-to-jet is a huge new opportunity, and with the blenders tax credit that’s in the Inflation Reduction Act, it will really accelerate SAF commercial ization,” Noyes says. “California has a bill going, which we’re working on, that would further accelerate [SAF use].”
Policy
fuels over the next two decades. Noyes says this year’s scoping plan is the first that needs to consider progress on two related goals: carbon neutrality and emissions.
FROM THE TOP: Both California Gov. Gavin Newsom and his predecessor, Gov. Jerry Brown, have taken actions that have promoted the state's move toward carbon neutrality.
at the pump, it has limited consumer reach because most people don’t own flex-fuel ve hicles (FFVs). But E15 can be used in over 90% of the light-duty vehicles on the road today, and after years of rigorous testing, Jennings believes its approval in the Golden State is no longer a matter of if, but when. Ethanol was an important component in enabling California to meet its GHG re duction goals ahead of schedule, Jennings explains. “Ethanol delivers incredible car bon reduction compared to gasoline,” he says, “so we hope CARB will decide to set a more ambitious carbon intensity target.” With the potential for an increase in the stringency of the LCFS, now would be the ideal time for E15 to make an en trance. “This is going to give everybody in the marketplace a chance to do more etha nol blending with E15, and I think we’ll see probably the most rapid E15 mobilization that we’ve seen in any state,” Noyes says. Over the past few years, E15 has been undergoing California’s rigorous multime dia process, which includes various tests to determine if it will be allowed in the state. In late July, CARB stated that it is planning to complete the process in 2024. Noyes says that in July, E15 passed air quality criteria pollutant testing with “flying colors.” “CARB, through this long-term test ing process that’s been going on for several years and has involved a lot of industry in vestments, has become convinced that E15 is essentially better than E10 or … the gaso line standard for California, but there is still a process to go through,” Noyes says.
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E15 has the potential to give obligated parties, such as fuel refineries and importers, a way to meet California’s GHG require ments and give producers more credits per gallon of blended E15 fuel. Noyes explains
Author: Katie Schroeder Contact: katie.schroeder@bbiinternational.com
Final Thoughts
24 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022
that if an obligated party blended an ultralow carbon intensity ethanol enabled with carbon capture and sequestration technol ogy, they may be able to meet their entire LCFS obligation, on a gallon-for-gallon ba sis, with E15 alone. “That’s a big slice of the pie … and es sentially, that’s going to allow the obligated parties to get a 50% boost in their blend ing, so I think E15 will very rapidly become the standard fuel in California,” Noyes says. With California planning to eliminate the use of fossil fuels by 2045, restarting the manufacture of FFVs could be a key step to leveraging the future of E85 in the state. However, Noyes says that efforts to get policy support have struggled to gain traction. He and his team hope to show how E85 can be used to achieve Califor nia’s goal of net zero emissions, through blending E85 with renewable naphtha, a byproduct of renewable diesel production that is becoming more widely available.
“While California does have a very ag gressive ZEV (zero-emission vehicle) pro gram in the light-duty sector, and is work ing to electrify the medium- and heavy-duty sectors, the state is realistic and performs technology assessments, seeing that in the long-term, low-carbon fuels are essential to decarbonization,” Noyes says. Noyes believes that the misconcep tions about ethanol’s place in a low-carbon future is not only limited to California, but must be debunked in the national arena as well. “We don’t think it’s sufficiently clear in the national conversation that biofuels are an essential part of the solution—that ethanol is an essential part of the solu tion—and the work everyone’s doing to further decarbonize ethanol and improve is just going to make it more so.”
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Throughout her time with POET, Headman has found BASF to be a great supplier of enzyme technologies. “BASF just consistently brings really high-quality products to us for testing and it’s really good to work with them, both their sales team and their technical team are always willing to help us if we have questions,” Headman says.
Headman’s travels include visits to Brazil, Argentina and Europe. Although she hasn’t been able to travel much lately, she is hoping to start up again soon. She loves to have an opportunity to experience the local culture and unique environment of each location.
presents 2022 Faces of Ethanol
Industry Experiences Originally from the Philadelphia area, Headman rst came to the Midwest when she attended graduate school at the University of Wisconsin Madison. There she studied microbiology and speci cally enjoyed Tom Jeffries’ research on the utilization of corn stover and other plant matter as an ethanol feedstock. This is what started her interest in the industry. After working with California-based company Edeniq during start up and working with their cellulosic process for 16 months, Headman worked with Verdezyne and Novozymes before coming to work with POET four years ago. Her years in the ethanol industry have given Headman a greater appreciation of rural America and developed her understanding of the importance of different roles within the workplace. “I might be a really strong scientist but this doesn’t matter if I can’t work with the engineers and other people to make sure that an input is implemented as accurately as possible and that we think of all the potential downfalls ahead of time,” she says.
JENNIFER HEADMAN Fermentation ManagerPOET
Sioux Falls, SD Jennifer Headman is a fermentation manager with POET research. She and her team screen all the new technology inputs in the lab and collaborate with plant managers to design trials for the POET’s bioprocessing facilities.
“I would say there’s really no typical day [working] at POET,” says Jennifer. She and her team work in the lab, screening new technologies such as yeast, enzymes and other chemicals, before they are implemented in POET’s bioprocessing facilities for trials. Headman also collaborates with plant managers to design upcoming trials, helping to x any operational opportunities and advises on how to achieve the best possible outcome. She believes that both the communication and technical analysis elements of her job are very important. “Obviously, the technical work has to happen. You have to do all the testing and all the analysis of the data, but nothing is really going to happen on the larger scale unless you can effectively communicate with people that are helping to run the plant. You have to answer questions for the people that are running plant trials or are running different technologies that we’ve suggested,” Headman says.
Service and Exploration Beyond her professional life, Headman enjoys traveling and being involved in Alpha Phi Omega, a national co-ed service fraternity and leadership development organization. She is in her last term as the Regional Chair of the North and South Carolina part of Alpha Phi Omega and loves helping college students develop leadership skills, plan service projects and organize fun events.
By Luke Geiver
Supply chain constraints are improving, but ethanol producers are still dealing with the higher costs and tighter availability of almost all production inputs, parts and equipment.
The U.S. supply chain can be described in two ways. There is the complicated explanation for the state of supply in 2022 that requires a deep dive into shipping container availability, fuel prices, post-pandemic hangover, Ukraine and a handful of other intricate factors. There is also a simpler way of looking at the U.S. supply chain. As CoBank, one of the largest private providers of credit to the U.S. rural economy, recently said in a quarterly report created for the rural industries it serves, “Supply chains are still a mess.”
The Benchmarking Expert Connie Lindstrom, senior biofuels ana lyst for Christianson Benchmarking LLC, offers insight to the supply chain challenges of 2022—down to the penny. Ethanol pro ducers are rethinking inventory levels to en sure they aren’t short on a critical ingredient or necessary part, she says. That new focus on inventory is increasing operational costs per gallon. Lindstrom sees the increase in her benchmarking work that shows plant supplies, repairs and maintenance costs are all running about a cent higher per gallon for the first half of 2022 compared to the previous year. Multiply a penny by 50 or 100 million—gallons, that is—and you’ll see why plants are concerned about a cent difference, she notes. Chemicals and ingre dients (minus denaturant) are also running
26 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022
STAYING STOCKED
Ethanol Producer Magazine spoke with entities from across the greater ethanol in dustry to shed light on these lingering sup ply chain restrictions to see what’s being done about it and when normalcy might return.
According to Lindstrom, the health of the ethanol industry, despite the current supply chain challenges, is in a good place.
“We have so many experienced leaders right now,” she says. “Profitability continues [to be] steadily favorable, and plant boards and management executives have been around long enough to see several downturns and up-cycles. So they know it's a great time to invest in technologies that will help them future-proof their profits (into things that will reduce carbon scores, improve efficien cy and diversify product mix).”
Ethanol Plant Manager Mick Henderson, general manager at Kentucky’s Commonwealth Agri-Energy LLC, says his team has experienced supply chain issues like most other sectors of the economy. There have been plenty of nui sance issues to work around and some have been very impactful.
The worst issue for Commonwealth Procurement
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Few certi ed appraisers in the United States specialize in ethanol plant and related biofuels properties. Natwick Appraisals o ers more than 50 years of worldwide experience. Your appraisal will be completed by a certi ed general appraiser and conform to all state and federal appraisal standards. Our primary specialty in industrial appraisal work is with ethanol, biodiesel, and other types of biofuel facility appraisals, including cellulosic ethanol plants. high, roughly 1.5 cents more than the previ ous year.“Fortunately, two things are helping mitigate the impact of this: generally good continued profit margins, and the ongoing process efficiency improvements through out theClientsindustry.”throughout the industry have come to rely on the insight and bench marking work that Lindstrom and her team provide. Many use the data to understand whether a particular rising cost is specific to their location or facility, or if it’s simply a re ality of the industry, she says. “The former a good management team can fix; the latter, a good management team can reach out to others in the industry to problem solve and find Lindstromworkarounds.”sees plants looking for ways to gain flexibility in the supply chain, includ ing through the addition of onsite storage, power generation and even transportation partnerships. Some larger plants have been able to leverage things like pooled parts and supply inventories, while smaller organiza tions have sometimes found partners to help mitigate the higher costs of maintain ing largerOverall,inventories.thesituation has made new partnerships important for long-term sta bility, she says. “This has really been a year for ingenuity to shine. Success in managing cost and supply chain challenges relies upon creative thinkers: listen to everyone from the bottom up within your organization for ideas and suggestions, and don’t forget to leverage relationships, not just vendors, but staff from other facilities and even other businesses in your local area.”
“Parts inventories will improve soon. In gredients also. Being forced to look for al ternatives to all of the above has helped us in the short term. We will be better in the long-term, too.”
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Like Lindstrom, Henderson believes relationships matter more than ever in times like these regarding the supply chain. “We are not on an island. Talk to other ethanol plants and see what their solutions may have entailed. You can get back tenfold what you give,” he says. As everyone in the industry is having the same problem, Henderson believes there is an end in sight. The suppliers of parts or ingredients are working to hire and retain more workforce, he points out.
Equipment Specialist Michael Cohen, vice president of the equipment acquisition group for Illinoisbased Aaron Equipment Co., helps the eth anol industry become more cost-efficient by purchasing their excess equipment or helping them auction off inventory. Cohen and his team have seen and felt the effects of the supply chain upheaval on their busi ness and their ethanol clients. “For many of our customers, long lead times with OEMs have made it impractical to buy new equipment,” Cohen says. “This has led customers to turn to us to help solve their equipment needs. In some cases, we have also sold equipment back to an OEM.”
The Aaron team has had to deal with higher fuel costs, making it more expensive to transport equipment from a customer’s location to an Aaron warehouse, a situation that has made Cohen and his team explore differentCohenalternatives.sayshisteam can help ethanol clients in multiple ways right now. For a CFO or accounting team, Aaron can help with appraisals as well as inventory, so that there is a clear understanding of what equipment is where, and what the value of that equipment is. “On occasion, we have created internal websites to allow plant managers to see excess equipment within the company and have it transferred to a lo cation that needs equipment,” he explains. “We can also help raise cash by purchasing excess equipment or conducting an auc tion.”For a plant manager or operations
team, Aaron can help them find the equip ment they need to replace or purchase. Most plants have a “boneyard” of old equipment or discarded parts. “We can help clean up the boneyard by purchasing equipment or linking the plant to a repu table scrap company. This frees up space as well as generates cash.”
Through its work helping rural custom ers access credit, CoBank has its research finger on the pulse of ag and biofuel pro duction. The team recently provided a de tailed summary of the supply chain as it ex ists in Q2 and Q3 of this year. Warehouse capacity is hard to come by and inventory is expensive. Transportation costs have slipped since Q1. Container ship ping has become cheaper, but conditions for agricultural transport are mixed, the CoBank team reports. Rail, truck, barge and vessel costs remain stubbornly high and capacity limited.“The remainder of 2022 will be far from ordinary, and particularly hard to forecast,” says Dan Kowalski, vice president, knowl edge exchange at CoBank. “The Fed’s job will become harder and its influence great er. But the U.S. economy and rural sectors in particular are best positioned to navigate what comes next.” The CoBank team believes the supply chain and logistics matrix in the U.S. has im proved and is getting better. The team credits the change to two developments. First, there have been fewer exports issues from China related to the COVID-19 lockdown there. Although finding equipment can be difficult in the presence of supply chain issues, Michael Cohen and his team help producers transfer excess equipment from one location to another that in need.
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Agriculture Economists
The picture isn’t all clear or positive, however. CoBank notes that grain car avail ability and prices were at multiyear lows and highs, respectively, in Q2 and hadn’t improved until July of this year. Grain ex port vessel rates are also reaching multi-year highs and, despite efforts to improve agri culture’s access to vessels returning to Asia from California, the share of vessels leaving port empty was still roughly 70% in Q1, Co Bank“Supplyreports. chains,” the team notes, “are still a mess.” Kenneth Zuckerberg, Co Bank’s lead analyst for grains, farm supply and biofuels, works closely with several seasoned relationship managers who bank the ethanol industry and benefit from be ing able to share knowledge and triangulate ideas about the future of the industry.
Second, there has been slightly lower trans portation price inflation.
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Looking forward to the remainder of 2022 and into ’23, Zuckerberg is keenly fo cused on energy costs and the outlook for corn production. Both factors will impact the balance of a volatile supply chain and the profitability of ethanol production, he says.
Zuckerberg considers a supply chain to encompass the network of companies, re sources, activities and technology involved in both the production and sale or distribu tion of a given product. With ethanol, he focuses on the cost and availability of corn, the cost of fertilizer, and among others, grain transportation to an ethanol plant. He also follows natural gas prices and market prices for fuel ethanol and ethanol coprod ucts. Following Russia’s invasion into Ukraine that caused an initial spike in corn prices, Zuckerberg and his team noticed a trend among ethanol producers. “What we observed was that the most technology ef ficient ethanol producers were able to make profits during the past six months despite the volatility of inputs, partly driven by a firming in fuel ethanol prices along with ris ing gas prices,” he says.
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David Oppedahl, senior economist at Transportation costs, including rail, truck, barge and vessel, remain stubbornly high with limited capacity.
the Federal Reserve Bank of Chicago for more than two decades, agrees with the sentiment of the CoBank team. Oppedahl be lieves that there are still supply chain issues in many corners of the economy, even if it wasn’t as stressed as a year ago. Labor is one of the main factors driving the issues, he says.
“When you talk to a railroad company, they are holding back partly or even primarily because of labor issues,” he says. Part of Oppedahl’s research work is directly talking with companies from the Fed Bank of Chicago’s region, many of which deal with clients in the heart of ethanol production territory.
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“Hopefully, there will be some release in high corn prices when Ukraine stocks get exported, even though there are some questions about the quality of those stocks. It will take a long time to get those supplies to the market,” he adds, “I doubt it will be back to normal in the near term.”
For corn producers, it is an unusual time, he says. Outputs are priced well, but inputs are not. Most of the farmers in his region appear to be set for a profitable year, however. For ethanol pro ducers watching the supply chain and the price of corn, Opped ahl says to expect more of the same with corn prices, despite the return of Ukraine to the market.
Author: Luke Geiver Contact: editor@bbiinternational.com
When lab personnel aren’t ushering in new innovations, testing ethanol fermentations and producing real-time production data for their colleagues, they’re making sure what’s arriving at the gate is fit for today’s production needs.
By Luke Geiver
Elevating Quality Control
Innovation In the Lab Setting
Ethanol Producer Magazine spoke with industry veterans and lab experts about the role of the modern lab and how managers navigate perennial issues (like mycotoxins in in coming corn) while their teams also work to stay ahead of the everyday that keeps plants running optimally (like testing for quality across the entire supply chain).
Don Cannon has proven his ability as an innovator in the analytical chemistry space by achieving success in the private sector, through his work standing up public labs, and now as the research and development director for the cutting-edge team at Green Plains Inc. Cannon is currently helping usher in a new era inside a jointly run, collaborative space in Oma ha, Nebraska, connecting the expertise and needs of Green Plains with the industry knowhow and technology or testing insight of its subsidiary, Fluid Quip Technologies. All of that happens at one site. Keith Jakel, director of sales and marketing for FQT, believes like Cannon does. “There is a great story of innova tion with what we are doing in Omaha,” he says. “We have such a large base of knowledge between the two companies. Chances are we have an expert in the field for any question that arises.”TheOmaha Center for Innovation lab provides a glimpse at what a centralized, all-capable lab can look like, Cannon says. The team there uses the most modern equipment pos sible while running strategic tests in conjunction with other tests that are now a requirement. With Green Plains focusing on the production of sustainable, biobased ingredients for feed, fuel and the massive bioproducts industries, more test ing is required than ever before. “I think the increase from the food market that the feed products are going into has created a fundamental shift in how we run the lab,” Cannon says. “We are looking at putting quality management systems in place now. Throughout the production process, but also in the lab.” Jakel says the standards on some feed ingredients are very high. The end user is also looking for a sound testing protocol all the way through. “We need to demonstrate for them how the products test all the way through the supply chain,” he explains. Similar to most lab professionals across the biobased products and biofuels industry, Cannon is embracing and adapting to the new necessities required of his profession. Modern labs across the renewable energy or biobased sectors are changing, he says. New tests, new tech and new ways of thinking about the true function of the lab itself are the new norm. Although most labs might appear to function as they always have, the modern lab has changed. Production is not the only area a lab needs to focus on, especially those at facili ties producing multiple product streams to various markets. Quality control and assurance is now critical, as is the ability to validate claims from outside parties (through on-site test ing) about bolt-on tech or upgrades. “Labs aren’t just testing to aid production anymore,” Cannon says. “The best labs and facilities are now imple menting quality control and quality assurance experts for in puts and outputs.” To maintain the rigorous testing protocol required of more products in multiple markets, Jakel and Cannon say they have had to ensure their testing is consistent.
“Something as simple as the way you prepare samples in a lab is huge. That consistency across the board is the key to the higher margins in every department. That is what we looked at with this lab,” he says. Jakel also says the role of testing today isn’t just about what is going out, but also about how well new or existing plant set-ups are running. “Our technologies rely on sampling and lab processing to ensure that they are operating at peak efficiency.”Onmost days, the team samples every two hours to make sure they are adjusting to anomalies. “Doing testing allows us to make adjustments on the fly,” Jakel explains. Through his work in the ethanol industry and other sec tors, Cannon says he has learned that a lab shouldn’t only focus on testing. He is a proponent of running tests only if they have meaning. He works with his team in the lab and any plant he is affiliated with to ensure the data gleaned from each test is meaningful. Cannon values the consistency of testing protocols over the number of tests ran, he says. He also tries to remind others that sometimes the results are less important than the direction of a trend in testing. Sometimes a lab-scale test will not mimic the same numerical correlations that larger systems yield. But, he explains, what direction is a test moving? If the numbers move in the desired direction, he is less likely to discount the effectiveness of the larger system. “There are things that I have been very excited about in the lab,” he says. “Then, you go to reproduce it at scale and it doesn’t always work. That is why a good lab has the ability to understand why tech can’t scale based on lab tests.” Modern labs also serve a purpose unrelated to current Testing
ETHANOLPRODUCER.COM | 33
In a world creating, consuming and crav ing more and more data, ethanol plant labs are right at home. Equipped with a steady supply of both powerful new tech and the time-tested standby instru ments that have been getting the job done for years, today’s lab managers are expected to do both react to what’s occur ring in the moment and predict what’s coming next.
FQT has developed several lab simulations for its technol ogy to be able to show what its tech can do with certain stillage. The simulations help to show how much corn oil uplift a plant might get from a FQT technology adoption.
Sometimes that means providing data—or evidence—that an outside vendor’s claims on new bolt-on tech or upgrades ring true.“Every plant runs so unique now,” Jakel says, “that you have to be able to create these baselines for your own operation.”
34 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022 operations, Jakel and Cannon both agree. “The ability to give operations meaningful data is the number one priority of an in dustrial lab,” Cannon says.
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Dealing with Today
“Certain conditions such as extreme drought, extreme hu midity and excess rain can cause a sudden surge of toxin levels in the crops,” Kellen says. “The drought that much of the Prairie lands have seen this summer will likely result in elevated afla toxin values come harvest.”
While ethanol plant lab technology, standards and strategy have changed, the corn quality issues they test for have not. For example, mycotoxins, a family of toxins produced by mold that grow on almost all vegetation and grain, are a recurrent concern. These toxins are harmful to the humans and animals that con sume the feed products made from these crops, which is why they need to be monitored at ethanol plants producing distillers grains, says Lauren Kellen, lab manager for CHS Inc.
“It is important that a plant can look at an investment be fore they ever spend a dime,” Jakel says. “Information gained from tests allows us to make good decisions.”
Several surveys indicate the current state of mycotoxins ev ery year. The surveys collect information during the fall, before releasing updates starting in February. DSM’s July release of its own mycotoxin survey showed that of the 48 corn DDGS sam ples tested, surveillance suggested that mycotoxin occurrence was somewhat increased compared to 2020, with the greatest shifts in Zearalenone (6% above normal). Only samples sent in were tested. Samples showing clinical signs of toxin impact were not included in the survey testing. DSM has been running the survey since 2014 and analyzed thousands of agricultural samples from around the world.Dealing with toxins in corn isn’t new to Kellen, but the issue does showcase the importance of a well-run lab. Kellen says being vigilant about mycotoxins is simply part of ethanol production. “We’ve all seen rises and ebbs in mycotoxin levels,” she says. Through past experience, Kellen’s team has developed a suc cessful monitoring process for mycotoxins. “We have plans in place to quickly address high levels if brought into the plant. We feel confident in our instrumentation, and our validation meth ods.”This year, the majority of the crop space in the Midwest has experienced record droughts in addition to extreme heat. Certain mycotoxins thrive in these conditions, and many plants purchasing from these areas will likely have to deal with the toxins until next year.To stay on top of the issue, Kellen’s team tests incoming and outgoing products to constantly monitor mycotoxin values. The combination of in-house testing methods as well as third-party verification allows them to monitor the toxin load coming in or going out. During harvest, they increase testing.
Kellen believes it is important to understand that “while we cannot change climate conditions for the crops in our areas, we can do a good job monitoring and turning away highly flagged products. This cannot be done without the support of a highly [capable] lab team to be able to efficiently test and monitor the data associated with toxins,” she says. “Having a highly educated team makes the monitoring process smooth.”
This year specifically, Kellen says lab managers should be pre pared for increased testing and associated costs, and be thinking about a proactive approach rather than a reactive approach. “Test ing the samples can be time-consuming,” she says, “so it’s good to plan ahead with lab personnel to know that you will have man power to get the job done.”
Author: Luke Geiver Contact: editor@bbiinternational.com
Although the USDA and the Food and Drug Administration have laid out limits for each toxin depending on the market a prod uct is going into (swine, cattle, etc.), Kellen’s team has created their own limits in the lab they use to flag any product getting close to USDA or FDA thresholds.
Yeast is the lynchpin of the ethanol production process. IFF is an industry leader in biosciences, helping ethanol producers meet the challenges of creating a secure, renewable energy pipeline with innovative enzyme, yeast and antimicrobial solutions for starchbased fuel ethanol. Larry Anthony, research and development technical manager with IFF, says the company has been providing yeast to the ethanol industry for the past 10 years. He explains that IFF’s XCELIS Ethanol Solutions platform features yeasts and en zymes that they will recommend and tailor to each plant’s situation. “What we do is listen to our customers,” Anthony says. “We find out what each plant needs in terms of its process, and from there we can recommend the right yeast.” Their products include both single yeast strains and blended strains that will match each facility’s needs. Anthony states that IFF’s process of developing new yeast solutions stems from its di verse collection of yeast strains, each with their own desirable qual ities such as fermentation speed and robustness, which are allowed to combine via mating followed by selection of high-performing strains. The selected strains will be put through an intense screen ing regimen that exposes the yeast to stress conditions it will en counter in ethanol plants, such as high lactic acid stress, high acetic acid stress and high temperatures, identifying the winners. These high-performing strains are then used as a platform to genetically engineer products for high yield and other performance traits.
36 | ETHANOL PRODUCER MAGAZINE | OCTOBER 2022
“We take all these strains—and we develop hundreds, thou sands of strains—and put them through a reiterative screening process,” Anthony says. “You identify the top 10 percent of the best, put those back in the screen, and you keep winnowing it down until you’re able to identify the handful that are the most promising. But again, it’s all from listening to the customer, be cause the screen conditions are set up around what the customers are facing in the field.”
Innovations for the Individual Producer
Global biotechnology company IFF is a yeast and enzyme provider that offers ethanol producers customized recommendations based on their plant’s needs. as yield, fermentation rate and robustness. “But now that plants are starting to embrace new technologies like high value feeds, new product development opportunities are continuously emerging,” AnthonyAlongsays.with its strong core competency in yeast engineering, IFF’s XCELIS AI computer modeling system enables the company to better predict and steer outcomes at scale. “There aren’t very many biotechnology projects where you’re working with fermenta tions at the scale of the ethanol industry,” he adds. “So, from our perspective, it’s very exciting to work on projects that are large-scale commercial projects where you can actually see and make an impact at a customer’s plant.”
PHOTO: IFF
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
The future role of yeasts in the ethanol industry will be close ly tied to growth areas as plants start prioritizing high value co products and reducing their carbon footprint. However, Anthony thinks there is still potential to maximize the traditional goals, such
Spotlight BY KATIE SCHROEDER
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