Vital Magazine - Winter 2018

THE ESSENTIAL PERSPECTIVE Winter 2018

Excess Grain, Falling Prices Experts Predict Long-term Economic Problems Ahead; Higher Biofuels Blends Needed to Use Large Carryover

SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD A SF ET EE TRH3E0W Y RD SIFFERENTLY DIFFERENTLY O ERA LD SEETHEWORLD DIFFERENTLYSEETHEWORLD ALL IT TAKES TO MAKE THE WORLD A BETTER IS LIMITLESS D I F F E R E N T L Y SPLACE EE T H ECURIOSITY W O AND R LA FEW DDIFFERENTLY DECADES’ WORTH OF GOOD IDEAS. SEETHEWORLDD IFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD DIFFERENTLYSEETHEWORLDDIFFERENTLY SEETHEWORLDDIFFERENTLYSEETHEWORLD

STILL NEVER SATISFIED

P O E T. C O M

Ethan Harsh has seen how increased carryouts have impacted farming over the past several years. At his family’s farm in central Ohio, they have switched some acreage from corn to soybeans.

photo by Wes Mosley Photography

36

FEATURES 12 The RFS Works Today

24 Project LIBERTY Achieves Cellulosic Biofuel Breakthrough

36

24

Excess Grain, Falling Prices Experts Predict Long-term Economic Problems Ahead; Higher Biofuels Blends Needed to Use Large Carryover

42 POET’s CO2 Group Focuses on Transportation Efficiency, Customer Service to Deliver Quality Product

Find Vital online at: VitalByPOET.com

42

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On cover: Corn is harvested on Nov. 15, 2017, in Emmetsburg, Iowa. Photo by Greg Latza

COLUMNS 04

In Sight

By Jeff Broin

22

Farm Fresh

by Brian Hefty

32

Nascar® Update

by Ryan Welsh

56

Out Of Left Field

by Scott Johnson

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Policy Corner

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COPYRIGHT Vital is published quarterly by POET, LLC and other individuals or entities. All materials within are subject to copyrights owned

by POET. Any reproduction of all or part of any document found in Vital is expressly prohibited, unless POET or the copyright owner of the material has expressly granted its prior written consent to so reproduce, retransmit or republish the material. All other rights reserved.

For questions, contact the POET legal department at 605.965.2200.

POET’s Vital magazine is an important conduit to share how POET is moving our country and our world from depending on fossil fuels to producing sustainable resources from the Earth. We will represent the voices of producers and biofuels supporters, as well as educate and inform readers about agriculture and industry knowledge, opportunities and the power of the human spirit.

In the spirit of its continued commitment to being good stewards of the environment, POET is proud to produce Vital using 100% recycled paper, with eco-friendly soy-based ink.

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The opinions and statements expressed by content contributors and advertisers in Vital are their own and do not necessarily reflect those of POET. Neither POET nor its third-party content providers shall be liable for any inaccuracies contained within Vital, or for any actions taken in reliance thereon. ©2017 POET, LLC. All rights reserved.

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IN SIGHT

2017: A Big Year for Biofuels

by Jeff Broin, Executive Chairman and CEO of POET This past year, despite fierce opposition from Big Oil, the

ensure more consumers have access to E15 across the U.S.

biofuels industry had some mighty wins.

These assurances are a victory for our industry and for

Thanks to the tireless work of our bipartisan group of biofuels

agriculture. They come at a pivotal time when family farms

champions in Congress, along with grassroots efforts across our

are struggling with commodity prices that are below the cost

industry, we secured several sweeping victories.

of production. We need to continue to work together to create

The Trump administration ruled in our favor and against the

markets for higher blends that will create more demand for ag

refining industry in key decisions in 2017. The Environmental

commodities and help stabilize rural America.

Protection Agency (EPA) maintained the Renewable Fuel

We wouldn’t be where we are today without the efforts of so

Standard (RFS) Point of Obligation and increased the 2018

many of you. Here’s a snapshot of the impact you made in 2017:

biofuel volumes over its original proposal.

More than 7,100 hand-written comments were submitted to the

With these decisions, President Trump has followed through

EPA from POET team members during the RVO comment period.

on his campaign promise to support biofuels and the RFS,

Growth Energy also had several campaigns over the past year.

reaffirming to millions of voters across the heartland that this

During the RVO comment period, 706 individuals — including

administration values the importance of renewable fuels to our

many of you — sent 815 comments. For point of obligation, 528

economy and our energy independence.

individuals sent 2,234 comments.

Thanks to your comments and letters on key issues, our voices

A statement from the White House proclaimed: “President Donald J. Trump promised rural America that he would protect the Renewable Fuel Standard (RFS), and has never wavered from that promise. The Trump administration will protect the RFS and ensure that our nation’s hardworking farmers continue to fuel America.”

And in an October 2017 letter to Senate biofuels champions, EPA Administrator Scott Pruitt rejected several oil industry proposals that would have halted our progress. In that letter, he also set forth an agenda to work with the industry moving

are being heard in Washington.

But it’s clear that our fight isn’t over. While we have the passion and perseverance — and the truth — on our side, the oil and gas industry continues to make headwinds. We need to stay engaged and ensure our elected officials in Washington stand up to those who seek to undermine American-made biofuels.

We need to stay focused and keep up our efforts to stay in this important battle with our opponent.

Our policy priorities in 2018 include securing a year-round fix for RVP that will expand E15 markets. We also want to ensure the path to increased 2019 biofuel volumes remains clear, including cellulosic biofuel. We need to work to help the EPA understand the importance of a viable starch-based industry and aggressive targets for cellulosic and advanced biofuels to stabilize the Midwest economy and to enhance public health and national security.

Many of you have been part of this battle for years, and I want to thank you for being involved. You are the reason we have these victories to celebrate, and with your continued hard work and support we will have even more victories in 2018!

forward. He committed to working with Congress on exploring a Reid Vapor Pressure (RVP) waiver for E15. This waiver is critical to create a more stable environment for mid-level blends and to

4

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POLICY CORNER

2017 has been a year full of wins for the biofuels industry Thanks to collective industry voices

our efforts to bring mid-level biofuel

this commitment during a recent

and to our U.S. Senate champions

blends to consumers.

town hall event with local producers

— particularly Senators Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), Deb Fischer (R-Neb.) and John Thune (R-S.D.) — we have made great progress.

These

champions

have

worked

alongside POET to secure a stronger and more influential position with the U.S. Environmental Protection Agency (EPA) and the Trump Administration.

Having strong Senate leaders has also enabled our industry to foster and grow new relationships with other members of Congress on both sides of the aisle.

Look no further than the EPA’s recent action that officially denied the petition to shift the Point of Obligation to see how the work of these

champions

and

grassroots

efforts have made a difference. This petition would have moved the Point of Obligation from oil refiners to fuel retailers, potentially derailing

in Nevada, Iowa. He also said the

This is a crucial

EPA will not take any formal action

victory in our effort

(Renewable Identification Number).

to bring more biofuel

Administrator

to tie exported ethanol with a RIN

options to consumers

While we still have work to do, Pruitt’s

comments

show the traction we have gained so far, thanks to the collective work of our

and to give farmers

Senate champions and stakeholders.

a solution to the

farmers across the nation look to

growing ag crisis.

amidst depressed grain prices, our

tighten their pocketbooks even more industry and our Senate champions

Furthermore, EPA Administrator Scott Pruitt has outlined several additional commitments related to the Renewable Fuel Standard (RFS) and the biofuels industry. In an October letter sent to Senate biofuels champions,

Administrator

This momentum is important. As

Pruitt

noted the EPA is open to working with Congress to see if E15 could be sold year-round. Pruitt reiterated

have

raised

awareness

of

the

importance of using more biofuels to solve this ag crisis. Increasing the public awareness of biofuels has not been easy and has required the industry to come together in an organized and collaborative way.

Fuels America, Growth Energy and POET PAC — the industry’s largest political action committee — jointly defeated Big Oil in its attempts to gain traction with this Administration. Our industry’s efforts give our advocates on Capitol Hill ammunition to fight back against an industry that is too used to having its way in Washington, D.C. Thanks again to Senators Grassley, Ernst, Fischer and Thune for your leadership and continued support.

We look forward to building upon the success of 2017 throughout the upcoming year!

6

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POLICY CORNER

2018 EPA RENEWABLE VOLUME OBLIGATIONS The U.S. Environmental Protection Agency (EPA) released

marketplace.

its final rule for the 2018 Renewable Volume Obligation

“Biofuels are a critical component of the U.S. fuel supply,

(RVO). This number determines the minimum amount of

and President Trump and the EPA confirmed that fact.

renewable fuel to be blended into the U.S. fuel supply for a

With starch-based biofuels remaining at full volumes,

calendar year.

Americans will continue to benefit from cleaner air by

The final numbers brought mixed reaction from

replacing harmful cancer causing chemicals in gasoline,

industry leaders. While industry officials and lawmakers

and stronger energy security by offering homegrown fuels

were pleased with the 15 billion gallon requirement for

that cost less,” said Broin.

starch-based biofuels, they expressed disappointment that

“Unfortunately, this final rule fails to recognize the

advanced biofuel amounts remain relatively flat.

enormous opportunity before us to harness our nation’s

Sen. Chuck Grassley (R-Iowa) said the final rule “does

vast cellulosic resources for higher-performing and lower-

little to encourage investment and growth in advanced

cost fuels. POET remains committed to seeing the U.S. lead

biofuels.”

the world in cellulosic biofuel production. All groups that

Iowa Gov. Kim Reynolds said, “This announcement shows

support cleaner-burning, renewable fuels should work

that EPA Administrator Pruitt is listening to our concerns

together to help the EPA understand why a viable starch

and taking them into consideration. But it also shows that

industry and aggressive targets for cellulosic and advanced

we have more work to do.”

biofuels are essential to safeguarding public health and

Thanks to our grassroots efforts and our bipartisan

improving the health of our planet,” Broin said.

coalition of lawmakers, the EPA did increase the total

POET

number of cellulosic biofuel gallons from the proposed

understanding of cellulose in advance of the proposed 2019

amount for 2018. But there is still a need to push for higher

volumes. Where others have seen challenges in cellulosic

biodiesel and cellulosic amounts.

biofuels, POET sees opportunity.

POET CEO Jeff Broin also expressed concern about the

The total number of renewable fuels is also higher than it

signal the final numbers for cellulosic biofuels sends to the

was last year. Here’s a look at the final numbers:

Starch-based biofuels

Advanced biofuels

Biodiesel

TOTAL

will

start

working

to

improve

the

2018 FINAL RULE

2018 PROPOSAL

15 BILLION GALLONS

15 BILLION GALLONS

4.29 BILLION GALLONS

4.24 BILLION GALLONS

(including 288 million gallons of cellulosic)

(including 238 million gallons of cellulosic)

2.1 BILLION GALLONS

2.1 BILLION GALLONS

19.29 BILLION GALLONS

19.24 BILLION GALLONS

of renewable fuel

of renewable fuel

EPA’s

7

POET PAC

POET PAC It’s more than a contribution – it’s an investment in the future of biofuels.

The fight continues for the biofuels

never been a more important time

supported and worked with this

industry in Washington and around

to reinforce rural America’s role in

industry – to make an investment so

the country. Our old adversary, Big

producing clean, renewable energy.

that we can boldly spread the truth

Oil, is not just playing to win; it is

The only way to avoid the pending

about the benefits of biofuels and

also trying to decimate agriculture as

ag crisis is to come together and let

crush the lies pushed forward by Big

we know it. We can’t and won’t back

Washington know we need a larger

Oil.

down.

share of the fuel market.

How can you invest in the future of biofuels? By joining POET PAC today.

With

America’s

facing

Rural America has a powerful

prices,

voice when we decide to use it. This

incomes and land values, there has

is why we need you – those who have

plummeting

farmers

commodity

What is POET PAC? POET PAC is a non-restricted Federal Political Action Committee (PAC) formed to give our industry a voice in the fight.

The PAC educates and pushes policy leaders to be champions for our industry and for the future of biofuels.

POET PAC is consistently recognized as one of the most well-organized and effective advocacy tools in Washington.

8

VITALBYPOET.COM

POET PAC provides strategic support to federal political candidates who: Serve on Congressional committees that oversee agriculture, energy and financial issues that may impact our industry.

Endorse issues important to the biofuel industry.

POET PAC

YOU BET THEY DO.

Do PAC dollars work?

We have been able to grow political support for renewable fuels and push back on many attempts to kill the 5 billion bushels of corn we draw on as an industry.

Here are a few of our recent successes: Shut down the attempt by New York billionaire Carl Icahn to change the Renewable Fuel Standard’s (RFS) Point of Obligation, which would have derailed our efforts to engage fuel retailers and bring mid-level biofuel blends to consumers.

Equipped industry and political champions to fight against proposed changes to the RFS that would have otherwise limited or even stopped any roll out of E15.

Maintained 15 billion gallons of starch-based biofuels and increased the amount of cellulosic biofuel from the Environmental Protection Agency’s original proposal in 2017.

Thirty-eight senators supported us and a strong 2018 Renewable Volume Obligation.

How do I join? www.poetpac.com

(605) 965-2377

poetpac@poet.com

Contributions to POET PAC are not tax-deductible for federal income tax purposes. Contributions to POET PAC will be used in connection with federal elections and are subject to the limits and prohibitions of federal law. The maximum an individual may contribute to POET PAC is $5,000 per year ($10,000 per couple). Corporate and foreign national contributions are not permitted under federal law. Please make checks payable to POET PAC. Federal law requires us to use our best efforts to obtain and report the name, mailing address, occupation and name of employer for each individual whose contributions aggregate in excess of $200 per calendar year. Your contribution to POET PAC is strictly voluntary.

PAID FOR BY POET PAC

THE ESSENTIAL PERSPECTIVE

9

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POET’s patented raw starch hydrolysis process converts starch to sugar with a proprietary blend of enzymes and eliminates the need to heat the corn. Other biofuel producers use a POET’s patented raw starch hydrolysis process converts starch to sugar with a proprietary jet cooker, which breaks down starch with heat.

The BPX process reduces energy use in blend of enzymes andpercent, eliminates the need to heat the corn.

Other biofueland producers use a each plant by 8-15 resulting in less natural gas consumption greenhouse POET’s patented raw starch hydrolysis process converts starch to sugar with a proprietary jetgas cooker, which breaks down starch with heat. The BPX process reduces energy use in emissions. blend of enzymes and eliminates the need to heat the corn. Other biofuel producers use a each plant by 8-15 percent, resulting in less natural gas consumption and greenhouse jet cooker, which breaks down starch with heat. The BPX process reduces energy use in LOCATIONS: gas emissions. All each plant by 8-15 percent, resulting in less natural gas consumption and greenhouse gas emissions.

LOCATIONS: All LOCATIONS: All

This energy generation system reduces greenhouse gas emissions and reliance on the electrical energy grid. The process uses steam in a This energy generation system reduces greenhouse emissions and turbine to generate electricity to run the plant andgas recovers waste reliance on thethe electrical energy grid.

The process uses steam in in the a energy from turbine to meet additional energy demands This energy generation system reduces greenhouse gas emissions and turbine toproduction generate electricity to run the plant and recovers waste biofuel process. reliance on the electrical energy grid. The process uses steam in a energy from the turbine to meet additional energy demands in the turbine to generate electricity to run the plant and recovers waste LOCATIONS: Alexandria, biofuel production process. Caro (currently constructing), Chancellor (currently energy from the turbine to meetMarion, additional energy demandsand in the constructing), Fostoria, Leipsic, North Manchester Portland biofuel production process.

LOCATIONS: Alexandria, Caro (currently constructing), Chancellor (currently constructing), Fostoria, Leipsic, Marion, North Manchester and Portland LOCATIONS: Alexandria, Caro (currently constructing), Chancellor (currently constructing), Fostoria, Leipsic, Marion, North Manchester and Portland

During fermentation, yeast consumes simple sugars found in the corn,

producing carbon dioxide and ethanol. For each pound of simple sugars consumed, During yeast simple sugars found in the corn, produced.

POET captures the CO2, about fermentation, a half-pound each ofconsumes ethanol and CO2 are producing carbon dioxide and ethanol.

Forthe each pound of simple sugars consumed, which otherwise would be released into atmosphere, and liquefies During fermentation, yeast consumes simple sugars found in the corn,it for about a half-pound of ethanol and CO2 are produced. POET captures the CO2, transportation to each market. producing carbon dioxide and ethanol. For each pound of simple sugars consumed, which otherwise would be released into the atmosphere, and liquefies it for captures about a half-pound each of ethanol and CO2 are produced.

LOCATIONS: Bingham Lake, Fostoria, Glenville, Laddonia, POET Macon, Marion,the CO2, transportation to market. whichResearch otherwise wouldand be released POET Center Preston into the atmosphere, and liquefies it for transportation to market.

LOCATIONS: Bingham Lake, Fostoria, Glenville, Laddonia, Macon, Marion, POET Research Center and Preston LOCATIONS: Bingham Lake, Fostoria, Glenville, Laddonia, Macon, Marion, POET Research Center and Preston

POET’s Total Water Recovery technology continuously recycles water used in the plant, eliminating liquid discharge from all our bioprocessing centers.

POET’s Total Water Recovery technology continuously water used per As a result, POET plants require on average less thanrecycles 2.5 gallons of water in gallon the plant, eliminating liquid discharge from all our bioprocessing centers. ethanol.

Other biofuel producerscontinuously discard the wastewater.

POET’sof Total Water Recovery technology recycles water used As a result, POET plants require on average less than 2.5 gallons of water per in the plant, eliminating liquid discharge from all our bioprocessing centers.

LOCATIONS: All gallon of ethanol. Other biofuel producers discard the wastewater.

As a result, POET plants require on average less than 2.5 gallons of water per gallon of ethanol.

Other biofuel producers discard the wastewater.

LOCATIONS: All LOCATIONS: All

The Works Today RFS Is ‘Absolutely Necessary’ to Support Growth of Renewable Fuels, Pathway to Higher Blends

by Peter Harriman

12

VITALBYPOET.COM

Everything changed.

But nothing changed.

At the time it was created, the RFS

refiners to blend biofuel with gasoline

was considered necessary to break

and demonstrate compliance with

up the long-held monopoly at the

Renewable Identification Numbers

pump. The plan was to force reluctant

(RINs) is an economic hardship on

partners — oil refiners who saw

refiners that also brought into being

every gallon of biofuel as reducing

a new commodity market in RINs, a

the market for a gallon of gasoline

market that is subject to manipulation.

— to join with the biofuels industry

Almost all gasoline now contains 10

and hit targets for expanding the

percent biofuels, E10. But for the use of

use of renewable fuels and to spur

renewable fuels to continue to expand

the development of biofuel produced

and reach RFS goals, renewable fuels

from

stocks.

producers need higher percentages

fuels

Today, the results of the policy are

of E15 and more to counter sluggish

benefited from a federal policy that

widespread and include movement

growth in the overall demand for

unleashed the industry to expand

toward

gasoline that one oil producer, Shell,

to more than 19 billion gallons and

prosperity for rural America.

and finance giant Goldman Sachs

create nearly 400,000 jobs, according

Ten years on, the RFS is attacked

expect to peak within the next decade.

to

A

decade

the

after

National

renewable

energy

feed

independence and

Growers

as being well intentioned but based

But

Association (NCGA), the fundamental

on faulty fuel demand projections.

dragging its heels again. It is throwing

situation that led to the policy being

Critics say its goals of a cleaner

up roadblocks to the growth of

adopted

The

environment have been accomplished

higher

remains

partnership

Corn

cellulose-based

in

between

place. oil

uncooperative

biofuel

Big

blends.

Oil

The

is

goal,

refiners

through other means, specifically a

it seems, is to freeze the biofuels

and the renewable fuels industry

new reliance on an abundant supply

industry like a bee in amber at E10.

continues to be held together by the

of natural gas made possible by the

As it seeks to limit the expansion

Renewable Fuels Standard, or RFS.

development of hydraulic fracturing

of renewable fuels, the structural

Congress established the RFS in

and horizontal drilling, and that the

advantages built over more than

2005 and expanded it two years later

goal of energy independence has

a century that give the petroleum

to achieve a reduction in greenhouse

come close to being realized with an

industry a virtual monopoly as the

gases from the use of cleaner-burning

increase in domestic oil production,

primary purveyor of fuel will never

biofuels as a component of motor fuel

rather than a greater use of renewable

be

and to lessen reliance on imported oil

fuels.

adherence to the RFS.

by increasing the supply of domestic

RFS

renewable fuels.

architecture of the RFS that requires

opponents

also

claim

THE ESSENTIAL PERSPECTIVE

the

overcome

“In

an

without

open,

normal

continued market,

biofuels would power every vehicle

13

we have,” says Bob Casper, President

from sale in as many as two-thirds

fuels will be major contributors to our

of POET Ethanol Products.

of markets during summer months

lower-carbon future,” says Kyle Gilley,

It is cleaner burning; the supply is

when

Senior Vice President of External

reliable; and it offers consumers the

Pressure (RVP) measures the rate at

Affairs & Communications, POET.

lowest cost octane on the market. It

which emissions from evaporated

Even

allows fuel to be sold at three cents

gasoline add to ground-level ozone.

restrictions, E15 has faced headwinds.

to 10 cents less per gallon, according

The EPA created a waiver for E10 fuel

Casper cites the example of Dallas,

to Chris Bliley, Vice President for

because its cleaner tailpipe emissions

Texas.

Regulatory Affairs for Growth Energy.

offset any higher evaporation rate.

reformulated gasoline so it has no

However, the RFS is still needed to

But it has not yet extended the

issues with RVP emissions. E15 was

ozone

peaks.

Reid

Vapor

without

The

expected

to

market

the

seasonal

already

flourish.

uses

“Everybody

thought that until they didn’t,” says Casper. Retailers were slow to invest in the infrastructure to sell E15. “They

We need to actively educate policy makers on the benefits realized by consumers and rural America by upholding the RFS. A lower-carbon future creates a sustainable environmental and economic future for our country.

want to put it off until the last possible moment.”

The RFS is also necessary to give biofuel companies and fuel retailers assurance there will be a market for cellulosic and advanced biofuels if they make the major investment to produce them and sell them, according to Casper. “Nobody would take that on without the RFS.” The RFS, though, is currently caught in an unfavorable cycle where the

offset petroleum’s edge.

waiver to E15. A bill that would have

factors slowing the rate of renewable

“If there wasn’t an RFS, the market

rescinded the regulation prohibiting

fuels’ growth are an incentive to

would be controlled by oil companies,”

E15 sales in summer failed to get out

the EPA to roll back the RFS annual

Casper says.

of the Senate Environment and Public

targets.

Works committee in 2017.

While “in the past year and this year

The

14

Environmental

Protection

Agency (EPA) in 2012 approved E15 for

The

reach

we are seeing record consumption of

use in vehicles built in 2001 and after,

RFS targets, however, may prompt

continuing

gasoline,” according to Bliley, the EPA

following years of testing. Growth

Congress to act on the measure.

2018 targets for the use of biofuels are

Energy’s Bliley says E15 is sold in

“We need to actively educate policy

virtually flat. The EPA set the 2018

1,200 locations in 29 states. “Now we

makers

realized

goal for all renewable fuels at 19.29

are starting to see the takeoff of E15.”

by consumers and rural America

billion gallons, a barely detectable

But for the momentum to continue,

by upholding the RFS. A lower-

increase from the 19.28 BG level in

the EPA needs to strike provisions

carbon future creates a sustainable

2017. Advanced biofuel saw a similar

that limit the sale of E15 by retail gas

environmental and economic future

incremental bump, to 4.29 BG from

stations year round. E15 is banned

for our country. Starch and cellulosic

4.24. The target for cellulosic biofuel

on

the

need

to

benefits

VITALBYPOET.COM

What is the RFS? The Renewable Fuel Standard (RFS) is America’s most successful domestic energy policy that is working to lower our dependence on foreign oil, keep our air clean and provide consumers with more affordable fuel options that are also good for engine performance.

Since its authorization under the Energy Policy Act of 2005 and expansion under the Energy Independence and Security Act of 2007, the RFS has given homegrown biofuels a chance to compete at the pump, allowing consumers to select from a range of options at the gas station, including blends containing clean, homegrown biofuels. Any effort to repeal, change or modify the administration of the RFS would hinder progress already made and slow future growth.

THE ESSENTIAL PERSPECTIVE

15

Benefits of the RFS Create jobs and grow the U.S. economy

Protect the environment and our air

Increase America’s energy security

Expand fuel options for U.S. drivers

Drive investment in research and development in starch and cellulosic biofuels SOURCE: GROWTH ENERGY

16

VITALBYPOET.COM

was

311

There is a way to counter this,

the RFS today, from saving consumers

million gallons in 2017 to 288 MG in

actually

however. If refiners would blend

money to driving rural growth and

2018, reflecting the slow development

more E15 they would have sufficient

protecting the environment, and it’s

of commercial production of cellulosic

RINs to meet their EPA goals without

clear that this is a successful energy

biofuel.

having to purchase any, according to

policy. In order to ensure these

But the RFS enjoyed a big win when

Casper. “For $750 million you couldn’t

benefits continue, we need to maintain

Congress denied a refiner’s request

put more fuel in the system to solve

the RFS with the goal of continuing

to

that?” he asks.

to stimulate growth in cellulosic and

The RFS remains a sound way to

advanced biofuels,” Gilley says.

have

the

reduced,

from

Renewable

Volume

Obligation (RVO) lifted from them and instead imposed on retailers.

“The EPA came in and said that’s not happening. There was absolutely a backlash from retailers,” according to Mike O’Brien, Vice President of Market Development for Growth Energy.

To

show

progress

toward

compliance with EPA targets for using renewable fuels, a RIN is attached to every gallon of biofuel. RINs can be carried over for a year but are eventually retired when the biofuel is used. Retailers, not bound by the RVO, can separate RINs from the biofuel they purchase to sell to consumers

Just look at the extensive benefits of the RFS today, from saving consumers money to driving rural growth and protecting the environment, and it’s clear that this is a successful energy policy. In order to ensure these benefits continue, we need to maintain the RFS with the goal of continuing to stimulate growth in cellulosic and advanced biofuels

and enjoy a windfall profit by selling those RINs to refiners that have not met their RVO. O’Brien explains how it works. “The RIN is discounted from the E85 price.

achieve the policy goals of a cleaner

The RFS, says O’Brien, “is absolutely

The retailer has a price advantage and

environment and energy security that

necessary. It is our route to the market

an opportunity to tuck that margin in

Congress sought when it established

through our competition. … Every

his pocket. A lot of E85 gets blended as

the RFS, and the RFS continues to be

step of the way they fight us.

E15.”

essential to allow renewable fuels

“Five or six years from now, there

Refiners say they have to pass

to combat petroleum’s monopoly. It

might be a different fuel, E25 or

through to consumers the cost of

supports the continued development

E30. Starting at E15 today lays the

purchasing RINs, a cost estimated

of advanced and cellulosic fuels

groundwork to pull the trigger when

at $750 million. They also worry

and the growth of renewable fuels

E30 comes into the marketplace.”

speculators can corner the RINs

generally.

market and drive up the price.

“Just look at the extensive benefits of

THE ESSENTIAL PERSPECTIVE

17

GET GROUNDED IN THE FACTS

ENVIRONMENTAL AND HEALTH BENEFITS OF BIOFUELS A BETTER FUEL FOR A BRIGHTER FUTURE

REDUCES GREENHOUSE GAS EMISSIONS According to the United States Department of Agriculture, starch-based biofuel reduces greenhouse gas emissions by 43 percent compared to conventional gasoline, would further reduce greenhouse gas emissions by 50 percent by 2022 and has the potential to reduce emissions by as much as 76 percent. Cellulosic biofuel has a greenhouse gas reduction of 85-95 percent over 2005 gasoline baseline.

TRADITIONAL GASOLINE

98.2 kgCO2e/mmBtu*

STARCH-BASED BIOFUEL

56.0 kgCO2e/mmBtu

CELLULOSIC BIOFUEL

14.7 - 4.9 kgCO2e/mmBtu

*kilograms of carbon dioxide-equivalent emissions per million british thermal units of finished fuel

18

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GET GROUNDED IN THE FACTS

COUNTERACTS DAMAGE FROM FOSSIL FUELS The University of Montana found that the extraction and production of fossil fuels was responsible for destroying 7.4 million acres of vegetation from 2000-2013.

DECREASES GROUND LEVEL OZONE Independent environmental research indicates that replacing E10 with E15 will cause a decrease in emissions of ozoneforming compounds and carbon monoxide, and no change in nitrogen oxides (NOx) emissions.

CUTS TAILPIPE EMISSIONS According to the Biotechnology Innovation Organization, during the summer months alone E15 can reduce greenhouse gas emissions equivalent to taking 2.1 million vehicles off the road.

LOWERS PUBLIC HEALTH RISKS In addition to the environmental benefits, the Energy and Environmental Studies Institute states that E15 can lower the public health impacts from transportation emissions, including reducing risks associated with cancer and asthma.

THE ESSENTIAL PERSPECTIVE

19

PRIME THE PUMP

Spotlight: Sheetz

E15: ‘A real paradigm shift for the fuel industry’

by Janna Farley If there’s one word to describe

But one thing hadn’t changed in

Prime

the

Sheetz, it’s choice.

decades: the gasoline. Sheetz offered

volume,

high-profile

Since Sheetz, a chain of family-

the same kind of gasoline as other

provide E15 access and assists early

owned convenience stores based in

retailers:

retail adopters of higher-level biofuel

Altoona, Pa., was founded in 1952,

premium.

blends by awarding grants to help

choice has always been central to the

“We have an amazing selection

with their initial investments in

company’s mission.

of made-to-order food, ready-to-eat

infrastructure. The biofuels industry

In the 1950s, Sheetz was the first

food, snacks and beverages to choose

has invested nearly $70 million in this

convenience store to be open on

from inside the store, so we thought

initiative.

Sundays in Pennsylvania and, later

it was time we improved our offers

“We’re always looking for ways to

on, stay open 24/7. In the 1970s,

on the forecourt as well,” says Mike

give our customers the best product

Sheetz

regular,

mid-grade

and

Pump

targets

high-

retailers

to

Lorenz, Executive Vice President of

available on the market,” Lorenz says.

gasoline. In the 1980s, Sheetz took

Petroleum Supply for Sheetz.

“E15 is another way for us to give

consumer choice up a notch with

That’s

the introduction of its made-to-order

Sheetz started offering its customers

option.”

menu. Today, Sheetz customers can

E15, which Sheetz has branded as

Offering E15 isn’t just about choice

choose what they want – and how

Unleaded 15.

– it’s also about offering a good value

they want it – on a variety of menu

The Prime the Pump initiative was

to consumers.

items from sandwiches to appetizers

instrumental in the decision to offer

“We like that we can sell it for less

to pizza.

E15 to Sheetz customers, Lorenz says.

than 87 gas,” Lorenz says. “Consumers

started

offering

self-serve

why,

three

years

ago,

our customers a new alternative fuel

are very attentive to fuel price, and we thought that would be a driver to getting their attention to E15. Saving even just a few cents a gallon can change their buying behavior, so we’re currently selling it for 5 cents less than 87.”

E15 has really grabbed the attention of consumers, and the spectacular growth of E15 is fueled by consumer demand for quality, cost effective and environmentally friendly solutions, says Growth Energy CEO Emily Skor.

“The 21st century consumer is always on the lookout for products that can power their routines while also making the world just a little bit

20

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PRIME THE PUMP

Sheetz Fast Facts Headquartered in Altoona, Pa., the family owned and operated company has 564 stores in six states (Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina) and 18,000 employees.

Serves 1.5 million customers per day 40 new and rebuilt stores in 2017

We’re always looking for ways to give our customers the best product available on the market. E15 is another way for us to give our customers a new alternative fuel option.

better,” Skor says. “E15 provides a prime opportunity for fuel retailers and convenience stores to turn this important segment of the population from pass-through consumers to loyal customers.”

With 211 of its 564 stores offering E15, Sheetz is currently the largest retailer of E15 fuel.

“Consumers who buy it, like it,” Lorenz says. “It’s cheaper, it’s cleaner burning, it’s higher octane, which is

Total yearly sales of nearly $6 billion Ranked No. 56 on Forbes list of America’s largest private companies Listed in 2016 as a Fortune Best Workplace for Women (Top 12) Selected by Fortune in 2016 as a Best Workplace for Millennials (Top 35)

better performing,” he says. “It’s a real paradigm shift for the fuel industry.”

Named by Fortune in 2016 as one of the Best Workplaces in Retail (Top 10) Named one of the Best Places to Work in Pennsylvania, Maryland, Virginia, Ohio and North Carolina

Mike Lorenz, Executive Vice President of Petroleum Supply for Sheetz

Convenience Store Decisions named Sheetz the 2017 Convenience Store Chain of the Year, the second time Sheetz was honored with the award

THE ESSENTIAL PERSPECTIVE

21

FARM FRESH

How Can Satellites Improve Crops?

by Brian Hefty

Recently, an ag tech company called Farmers Edge made an

yields as they harvested. Once harvest is completed, this data

announcement that as part of their services, they would be able

gets thrown into a map, so a farmer can now see grain yield in

to provide as frequent as daily satellite imagery to farmers. For

each area of every field.

the first time, a farmer will be able to look at a satellite image of each field almost every 24 hours.

This is usually when I start getting phone calls. “Brian, why do you think this area of my field yielded so poorly?” The problem

Before I explain its potential benefits, picture the size you think

is once the crop is off the field, it’s pretty difficult to figure out

a satellite should be. When I ask people how big they think these

what went wrong earlier in the season. That’s where satellite

satellites are, I typically get responses anywhere from one to

imagery comes in. If you can see poor spots in fields mid-season,

three times as big as a car. The interesting thing to me is these

you now have the ability to go to that area and investigate what’s

satellites are extremely small, measuring roughly 12 inches

happening.

long by 4 inches high by 4 inches wide, plus some very small “wings” that stick out on each side. Just like how computers have

Technology is coming soon that will allow this imagery to be

shrunk in size, so have satellites. The cost has also come down

refined even further. For example, I talked to a company who

dramatically, so now it is economical for a farmer to get satellite

said they are able to detect certain weeds in a pasture using

imagery.

satellite imagery. At some point, farmers may be able to get reports along with their imagery telling them if the poor spots

The big question is, how can a farmer use this technology

are the result of low fertility, disease, insects or something else.

to improve crop yields? As I see it right now, it’s kind of like

But for now, scouting those problem areas is the only way to

getting your harvest maps in-season. Here’s what I mean:

start narrowing down issues.

Approximately 20 years ago, yield monitors became available for combines. These monitors allowed farmers to see live grain

Many types of satellites serve various purposes, but for me, the thought of daily satellite imagery is exciting. Going forward, it will lead to higher yields, lower costs (since imagery may allow farmers to treat certain areas of fields rather than whole fields), better use of resources and increased net farm income.

22

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IS MADE HERE.

For years, we’ve been told that cellulosic biofuel is a “fantasy fuel.” And it is.

And now it’s going to change the world. For real.

So we’ve spent a decade planning, researching, and working hard to make that fantasy a reality. ®

POET-DSM.COM

Advanced Biofuels

PROJECT LIBERTY ACHIEVES CELLULOSIC BIOFUEL BREAKTHROUGH 24

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Having overcome the pretreatment hurdle, the Project LIBERTY team is focused on ramping up all operations

by Susanne Retka Schill | photos by Greg Latza

THE ESSENTIAL PERSPECTIVE

25

rogress

at

POET-DSM

Project

LIBERTY

Advanced

commercial-scale

––

Biofuels’ cellulosic

biofuels facility –– is picking up steam. The critical pretreatment challenge has been solved, a new on-site

enzyme

manufacturing

The potential for the starch industry was realized because it was a priority for policy makers.

We need that same level of support for cellulose.

facility is under construction and with sustained runs at the site today, crews are devoting energy to downstream processes with an eye toward high-capacity operation.

While 140 miles to the southeast, DuPont Industrial Biosciences is putting its cellulosic plant up for sale, in Emmetsburg, Iowa, the community is noticing the increased

and advanced biofuels are so pivotal to supporting rural economic development, mitigating climate change and promoting U.S. energy independence.”

pace of progress for POET-DSM’s Project LIBERTY. “When

CLEARING THE PRETREATMENT HURDLE

I talk at meetings these days, people say they’re noticing the trucks rolling,” said Jason Martin, General Manager at Project LIBERTY. “When we have a nice day of operations you can see us chew through a row of bales.”

A new pretreatment technology has been installed and is progressing well, according to Martin. “We’ve achieved 80 percent uptime, and the availability is actually higher.”

Getting the pretreatment system working properly has

He described the new system as an “elegant solution that

been a big hurdle. Sustained runs were limited on the old

literally allowed us to shut down a whole building’s worth

system but now Pierson says they have moved on.

of mechanical equipment.” Project LIBERTY — a joint

Pretreatment is a critical part of the cellulosic biofuels

venture between POET and the Dutch biotechnology and

process. Pretreatment is the first stage in production,

life sciences company DSM — is located next to POET -

where the feedstock (corn cobs, leaves, husk) is processed

Emmetsburg, a 55-million gallon per year starch plant. This

so that enzymes and yeast can access the cellulosic sugars

model allows for operational and cost efficiencies.

and ferment them into biofuel.

Rod Pierson is pleased with the increased pace of progress

For Martin and his team at the plant, getting the

at Project LIBERTY. As Senior Vice President & General

pretreatment system up and running has opened up a

Manager at POET Design & Construction, he’s led the team

degree of freedom for operations.

that’s worked through the challenges of commissioning the

“We’re finding new opportunities now,” he said. With all

first 20 million-gallon-per-year cellulosic biofuels facility.

unit operations functioning, he explained, they can now see

But while POET-DSM is making progress on the technical

where one may be outrunning another. While fermentation

side of cellulosic production, the industry still faces hurdles

and distillation are familiar operations to starch plants, not

on the policy front. The Environmental Protection Agency

only is biomass pretreatment totally new, but so are the

(EPA)’s 2018 Renewable Volume Obligations (RVOs) for

systems to handle the different byproduct streams.

cellulosic and advanced biofuels came in lower than expected. Industry leaders expressed concerns that stagnant final RVOs will stall advances in technology and limit investor confidence.

“Having a consistent policy environment to incubate the industry is a big concern,” noted Jeff Lautt, President and Chief Operating Officer for POET. “The potential for the starch industry was realized because it was a priority for policy makers. We need that same level of support for cellulose. Industry groups need to work together to help the EPA understand why aggressive targets for cellulosic

26

ON-SITE ENZYME PRODUCTION FACILITY WILL BRING BENEFITS At the same time as the commissioning process gains momentum, the Project LIBERTY team is implementing improved enzymes from DSM.

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Biomass is processed in this piece of equipment

by North Carolina-based Vecoplan.

Mike Carpenter, Project Engineer, and Jason Martin, General Manager at Project LIBERTY, discuss updates at the facility.

THE ESSENTIAL PERSPECTIVE

27

28

“We drove down the cost of enzyme production, which in

An on-site enzyme production facility is expected to bring

turn also drives down the overall cost of cellulosic biofuels,”

several benefits. Using local feedstocks for the substrate

said Hans van der Sluijs, Business Director North America,

(the substance from which the enzyme is produced) has

DSM Bio-Based Products & Services. “Other benefits in

inherent efficiencies, as does being able to optimize mass

application have been observed and will be quantified

balances and utilities through integration with the parent

when they are used at full scale in Project LIBERTY.”

biofuel plant. Transportation and logistics are minimized,

Enzyme breakthroughs have brought major benefits, he

while producing and using the enzymes in a whole broth

added. “The unique properties of our enzyme breaks down

eliminates processing steps. The target completion date for

the pretreated stover more quickly.”

the enzyme production facility is late 2018.

It took a long time to get a little way. But now there’s less time between improvements and every improvement is bigger, because we have so much more base knowledge.

Rod Pierson, Senior Vice President & General Manager at POET Design & Construction

Jason Martin takes samples during the pre-treatment stage.

The net-wrap remover at Project LIBERTY is where the process begins.

Other benefits in application have been observed and will be quantified when they are used at full scale in Project LIBERTY. Hans van der Sluijs, Business Director North America, DSM Bio-Based Products & Services

29

POET team members meet for the daily operations meeting at Project LIBERTY.

“It took a long time to get a little way,” Pierson said. “But now there’s less time between improvements and every improvement is bigger, because we have so much more base knowledge.”

Ideas for modification come quickly, but implementing them takes time and money, he said. “The positive thing is for the majority of our changes when successful, it means a simpler, lower-cost facility.”

Both Martin and Pierson speak highly of the team working on Project LIBERTY. “The team is tough and nimble,” Martin said. “We’re able to manage change on a dime, which is required in order to move fast.” Building a team of pioneer-minded people has been a big part of the equation, he said.

Pierson praised the perseverance of the team “and the leadership team’s support to continue to drive it forward — everyone’s been working toward the same goal of making it successful.”

While engineers are sometimes accused of creating solutions that are unnecessarily complicated, Pierson said the opposite is true for Project LIBERTY. “Our focus as we make changes is to create something more sustainable and easier to operate.”

Jason Martin works at the facility.

30

VITALBYPOET.COM

NASCAR UPDATE

‘And That, My Friend, is Innovation’ A Lesson in Success

by Ryan Welsh It was a sticky yet bright summer morning at Pocono Raceway in late July.

The “Tricky Triangle” is tucked in the mountains of northeast Pennsylvania, about an hour from the closest airline hub. One of the most impressive solar fields in the United States sits adjacent to the superspeedway. This project provides electricity to the track and more than 300 area houses, making Pocono Raceway one of sport’s greenest venues. It also makes it a major league stage to showcase our American-made biofuel and its benefits to two influencers, which was my mission that day.

The

American

Ethanol

team

has

focused on embracing engine experts and consumer influencers. My job was to get our two guests in front of the engine and fuel experts in NASCAR® and make them advocates of biofuels. Our plan was to teach the teachers.

We met with Daniel Gray, an influential and well-known auto blogger, and Chris Filo, better known as Chris Fix from YouTube.

This wasn’t Daniel’s first NASCAR® race, and his blogs have always been friendly to us. Hailing from New Jersey, Chris was excited for his first NASCAR® race. Chris has over two and a half million subscribers to his YouTube channel that instructs people how to make repairs and service their own vehicles. He attested to be agnostic about biofuels. We were going to change that.

The first stop was the American Ethanol #3 team hauler, the semi-trailer that hauls the cars and equipment to the track.

There we would meet with our longtime advocate and team owner Richard Childress, our driver Austin Dillon and Richard Childress Racing’s (RCR) Chief Technology Officer Dr. Eric Warren.

We arrived at the #3 hauler with a warm welcome from Richard and Austin. We talked about how the car and the team looked this weekend and the season so far. When we got into the hauler, Dr. Warren explained each area’s purpose. It’s an extraordinary combination of auto parts store, garage and command center on wheels.

every aspect of the race: the car, the engine, the driver, the track and pit stops.

“Right now, we are looking at 12-13 seconds for four tires and fuel,” Dr. Warren said, answering Daniel’s question on how long it takes to pit.

As they started to discuss the logistics of a pit stop, Richard leaned over to me and said, “Back when I was in the car it took just over a minute — that is if you had a guy that was skillful with a star wrench and a floor jack.”

How did they get from over 60 seconds to 12 seconds for a full pit stop? I was so curious that I decided my secondary goal that day was to find out how.

We were winding up the tour with NASCAR® Green partner Safety-Kleen, and I got the ear of Director of Motor Sports, Drew Patey. These guys have been recycling the oil used in NASCAR® since the mid-1980s. Drew is a legend in the garage, and a character you would only find in the NASCAR® family, so I subtly asked, “Drew, how did NASCAR® teams get a pit stop down from over a minute to 12 or 13 seconds?”

He said, “Rohn (that’s how he pronounced my name), let me

The tour’s culmination came at the front of the hauler. Three

32

walls of computer monitors showed the data gathered from

tell ya something. How does anything get better? Huh? New

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The pit stop of today has evolved into a well-choreographed event. things! It’s called innovation, my friend.”

to see how POET continues to innovate.

“Example?” I asked.

It’s like as Drew says, “That, my friend, is innovation.”

“Well, around 1970 they started gluing lug nuts on the wheels.

You wouldn’t have to hold on to them or put them in your mouth or pocket. That saved a lot of time. Then the innovation in the 1980s was huge with jack, tools and air gun technology.

Heck, now the pit crews got cameras on their helmets and they study every move to find efficiencies! And that, my friend, is innovation,” Drew said.

Around 1970 they started gluing lug nuts on the wheels.

You wouldn’t have to hold on to them or put them in your mouth or pocket.

That saved a lot of time.

I achieved my two goals for that day. Daniel and Chris

saw

the

benefits

of using a clean, green renewable biofuel made in America. They also talked with experts who were skeptics-turned-advocates, and they joined the team.

Drew also taught me about success: It can only come through innovation.

POET to

is

no

innovation.

stranger In

fact,

innovators are considered heroes in the POET culture.

Herb Nab waits to change tires with lug nuts in mouth circa 1960s.

You don’t need to look any further than the work POET has done in areas from BPX technology to Dakota Gold

THE ESSENTIAL PERSPECTIVE

33

ENERGY FOR LIFE

NEW YEAR, NEW YOU Embrace Change in 2018

by Melissa Fletcher, Spiritual Care Advisor As the New Year takes its rightful place, we may be reminded of things that we wanted to accomplish in 2017 that did not come to fruition. At this point, we have two choices: dwell on the “would have,” “could have” or “should have,” or let it go and move on.

1. EMOTIONALLY Redefine failure. Set small goals and reward yourself for making small strides, which will eventually get you to where you want to go.

2018 is here! Let this be the year that you truly let it go! This means that it is time for an emotional, physical and spiritual detox. It’s time for a cleanse that will help you take on 2018 with vigor and strength.

Perform

a

digital

detox:

Unplug

from

social

media, emails, texting, too much TV or movies.

Recommendation: Start with a 24-hour digital fast and gradually work your way up. Amazingly, life does go

New Year’s resolutions are for the birds. Why? Because, although they seem helpful, in the end, they can lead to frustration, anxiety/depression and negative self-talk.

We tend to set the resolution, but when a little setback happens, we give up. We have to develop a mindset of goal setting and rewarding. This year, resolve to not just “try harder,” but instead commit daily to make small changes to become a better you!

on even if we are unplugged from the digital world.

Instead, plug in to a good book, spend time with friends and family, or take a nap to catch up on much needed rest. Allow these unplugged activities to renew your mind.

Be mindful of the negativity that surrounds you.

Examine yourself to see if you are contributing to the negative atmosphere. Commit to saying positive words.

If we want to mature emotionally, become more physically fit or grow in our spiritual journey, one thing is for certain: We must change. If we don’t embrace change, we will never reach our destination. Change

Say no to “judging.” This includes judging yourself and others. Judgment breeds negativity, and negativity can quickly create an unhealthy environment.

is happening all around us, whether we recognize it or not. Our bodies age, despite our efforts to seize the fountain of youth; our communities grow; our jobs have new responsibilities; our families multiply; and our world changes through the advancement of technology.

Change doesn’t need to be something we fear or loath.

Instead, we can embrace it. Change can bring about renewal, which in turn leads to new life. And remember, change is a process. You can’t reap a harvest overnight, but you can begin by planting the seed. Small changes are better than none.

Here are some practical ways to apply these lessons in three key areas of our lives:

34

2. PHYSICALLY Detox. Begin with a two-week cleanse of certain foods to allow your body to reset. Try eliminating sugar,

VITALBYPOET.COM

gluten, dairy, alcohol, caffeine, soy, peanuts and allergy-

do you want to be? A better spouse? A better parent?

causing foods. This will allow your body to clean out

A better friend? A better listener? Think about it and

the “bad” bacteria and allow the “good” bacteria time

write out a “to be” list. Put this list somewhere as a

to reestablish itself.

daily reminder and strive each day to fulfill it.

Nourish your body with healthy, organic foods

Spend time reading the Bible, praying, doing devotions

that offer a good source of vitamins, minerals and

and meditating to that will help you declutter your

protein. Commit to trying new foods every week and

mind from the barrage of worldly influences. Be

incorporate foods of many colors to draw on their

intentional about this sacred time that you will spend

antioxidant benefits. Finally, don’t forget to stay

renewing your mind and satisfying your soul.

hydrated. Water is an important element to staying healthy, so drink up!

Make it a habit to work on developing the Fruits of the Spirit in your life: love, joy, peace, patience, kindness,

Set regular meal and snack patterns to minimize

goodness, faithfulness, gentleness and self-control.

overeating and to regulate your blood sugar levels.

Having a basket full of this kind of fruit in your life will promote overall health and wellness for the mind,

Exercise every day. These don’t have to be hard-core

body and spirit. It also promotes healthy relationships

workouts, especially if you currently do not have an

with others.

exercise regime. Instead, commit to 20-30 minutes of brisk cardiovascular activity, such as walking or

It has been said that insanity is doing the same

jogging every day. Every part of your body benefits

thing over and over again and expecting

from a daily exercise program. Always check with

a different result. Perhaps you didn’t

your physician before you start any nutrition or fitness

accomplish everything you wanted to

programs.

do last year. Maybe you are stuck in the rut of insanity.

3. SPIRITUALLY

Do not give up. Make this new year an opportunity to make a new you!

Slow down. We often fail to take the needed time to

Simple steps can lead to renewal

just “be still.” Psalm 46:10 in the Bible says, “Be still and

and new life. Let those things

know that I am God.” If we are on the go too much, we

begin today!

will fail to see the beauty in the creation around us and miss the small blessings in our lives.

Get rid of the “to do” lists and create a “to be” list. Who

THE ESSENTIAL PERSPECTIVE

35

Excess Grain, Falling Prices Experts Predict Long-term Economic Problems Ahead; Higher Biofuels Blends Needed to Use Large Carryover

by Steve Lange | photos by Wes Mosley Photography

36

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THE ESSENTIAL PERSPECTIVE

37

Over the last few harvests, the status

figure out a way to make ends meet.”

has to change. He stresses that more of

quo for corn producers has meant a

Watson would know. POET Grain

the same means long-term problems

“slow bleed”: four straight seasons of

buys 650 million bushels of grain

for farmers.

a steady drop in prices (from $6.89

— nearly 5 percent of the U.S. corn

“If we continue going as we’ve gone

to $3.36 per bushel) and increased

crop — per year. With that grain, the

the last four years, financial conditions

carryouts, or “ending stocks,” the

company uses the starch to produce

will worsen,” says Irwin. “Lots of crop

amount left over after the immediate

1.8 billion gallons of biofuels, and the

operations have pretty much used up

need for a grain has been met (from

protein, fat and fiber is converted to

all their working capital. We’ll be at a

821 million to 2.3 billion bushels).

distillers grains, corn oil and other

real inflection point in another year or two. Farms will close.”

Irwin’s lifelong fascination with commodity markets started as a young boy on his family’s Iowa farm, tagging along with his dad to the local grain elevator to check the latest prices.

Today, he studies those variables that can affect future markets. Irwin does believe that one variable — weather — could play a role in reducing that corn crop in coming years. But he also stresses that it’s not something we can plan for, or rely on, in order to cut down on carryout.

“Essentially, the U.S. has had only one really poor crop in the last 22 years,” says Irwin. “It’s the most remarkable run of 20-plus years of favorable Midwest weather for growing corn since the start of weather records in the U.S. going back to 1895. We would need to knock a billion bushels off next year’s corn

38

The United States Department of

renewable products.

crop somehow before you would

Agriculture (USDA) projections for

“The producers are holding on

really put a dent in the price. That’s a

the current 2017-18 corn harvest?

to corn as long as they can,” says

lot. We can’t count on bad weather to

Another price drop, to $3.20 per

Watson. “The problem with holding

change this. We have to count on the

bushel. And another uptick in corn

on as long as you can is that the world

things we can control.”

carryout, to 2.5 billion bushels.

knows there’s 2.5 billion bushels of

Those

Unfortunately for farmers, that’s

corn inventory at the end of the year.

communication, according to Anne

more status quo. It’s more of what

About the time you get to July or

Steckel,

Dean Watson, the President of POET

August there’s still 2.5 billion bushels

National Farmers Union (NFU). And

Grain, calls a “slow bleed.”

out there and the world knows you’re

then that communication needs to

“It’s the worst of all worlds right

going to have to move it. That’s why

be converted into public education,

now,” says Watson. “It’s a slow bleed,

things won’t get better unless we

which can eventually help drive

and that’s the most painful, because

make some changes.”

policy.

it’s not so dramatic as to get national

Scott Irwin, the Laurence J. Norton

“The amount of education and

or world attention. So you’ve got

Chair of Agricultural Marketing at

advocacy that’s being done on behalf

these corn producers out there just

the University of Illinois at Urbana-

of the renewable fuels industry is

scrapping and fighting and trying to

Champaign, agrees that something

starting to pay off,” says Steckel,

VITALBYPOET.COM

controllables Biofuel

start

Adviser

for

with the

who works directly with legislators

on E15 sales during summer months

from her Washington, D.C. office.

— as quick fixes to help soak up that

“I’m starting to see more members

extra corn.

as we’ve gone the

of Congress really understand the

“We know there’s a lot of available

benefits of ethanol, especially after

corn out there,” Steckel says. “That’s

last four years,

we got past the whole food and fuel

part of the reason the NFU has

financial conditions

discussion, and after people saw that

doubled down on their efforts to

that was nothing but a red herring.

advance biofuels. We see ethanol as a

will worsen. Lots of

The challenge is to continue to educate

very viable way to use our corn to help

crop operations have

the consumer about the price at the

ensure that prices are where farmers

pump, and what’s in their gasoline

want them to be. That could, and

pretty much used

and why ethanol is good for all of us.”

should, happen right now if Congress

Steckel, whose dad worked for John

really wants to make a difference. We

capital. We’ll be at a

Deere in Moline, Ill., has turned those

have the opportunity to move corn,

agricultural ties into a desire to drive

and instead it’s sitting.”

real inflection point

pro-agriculture — and pro-biofuels —

Jay Schutte, a farmer in Benton

in another year or

policy.

City, Mo., is also the chairman of

She points to two of those policies

National Corn Growers Association’s

two. Farms will close.

— the continued support of the

(NCGA) Ethanol Action Team. He and

Renewable Fuel Standard, or RFS,

the NCGA also believe that a strong

the federal program requiring that

RFS and the removal of the RVP will

increasing amounts of renewable

support a market-based solution for

fuels be blended into the nation’s

improving the agriculture economy.

transportation fuel, and an expansion

In order for biofuel production to

of the Reid Vapor Pressure (RVP)

use additional starch, Schutte says,

waiver, which currently places limits

“We must maintain a strong RFS,

If we continue going

up all their working

remove the outdated and unnecessary RVP barrier, and continue to look for ways to getting midlevel

Corn ending stocks 2.5 billion

3 BILLIONS OF BUSHELS

1.73 billion

2.3 billion

stringent emissions and efficiency requirements.

Importantly, a growing global help

demand

for

fuels

increase

will

exports

and draw down the corn

1.74 billion

surplus.”

2 1.5

blends

automakers meet more

renewable

2.5 821 million

ethanol

into the market to help

1.2 billion

Like the NFU, the

NCGA also points to trade troubles when it comes to

1

exporting

especially

biofuels,

into

those

markets that punish our

.5

products with tariffs.

0

“The United States

leads 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 (projected)

YEAR

the

world

in

ethanol production and exports, and is currently

responsible for 60 percent of global

of

Urbana-Champaign.

to soybeans, that could happen. They

production and 45 percent of exports,”

“Many farmers can’t afford to keep

then could see price drops in both

says

growing corn.”

corn and soybeans.”

Schutte.

“The

United

States

Illinois

at

leads on biofuel exports because our

That

the

Planted corn, meanwhile, has fallen

ethanol wins on price, we have a

nationwide

shift

would

soybean

from nearly 98 million acres in 2012

stable supply, and global demand for

acreage, which has grown every year

to a projected 90 million acres this

trend

continue for

renewable fuels is rising. NCGA will back efforts to develop new markets

season.

and work with our partners such as

If we can overcome

the U.S. Grains Council to effectively

this challenge of

address barriers that other countries

Ethan Harsh’s family has been farming the central Ohio area since the 1800s. Ethan, 24, is back on the

communication — if

family’s 2,500-acre corn and soybean

Darrin Ihnen, who has a corn and

we can spread our

As a next-generation farmer, Harsh

soybean farm in Hurley, S.D., is one

message and get the

says he finds the farming life “very

“Everything for now went to the bin,”

American public to

every day. One day I’m inside working

he says. “We hope prices will turn

really understand

erect to our exports.”

farmer who is sitting on excess yields.

around, but I don’t expect prices to move a lot unless we see weather

the importance of

issues next spring. There is corn

agriculture and

sitting everywhere.”

farm after another year of college.

fulfilling. You do something different on some IT thing and the next I’m outside the entire day.”

Harsh has already seen firsthand how the corn carryover has affected

ethanol and the

farming over the past few years.

a long way since he helped his

economy — it can be

acreage from corn to soybeans.

grandfather collect corn cobs to burn

a beautiful future for

“It’s hard to plant a lot of corn when

farming.

says. “We have to continue to plant

Biofuels, says Ihnen, have come

in the cookstove.

“The simplest and quickest thing

His family has switched some of its

that can use up this large carryover

corn to keep our soil healthy, but it

is higher biofuels blends through

doesn’t make economic sense.”

E15,” says Ihnen, the Past President

While

of the NCGA and current Board Chair

40

you’re basically doing it at a loss,” he

Harsh

recognizes

the

challenges facing the ag industry, he

at POET — Chancellor. “The biofuels

since 2012, from 77 million acres (and

believes communication and telling

industry can expand plants to grind

3 billion bushels) to a projected 90

farming’s story to non-farmers is key

more corn within a year. If we could

million acres (and 4.4 billion bushels)

in reshaping the future.

get those higher blends, we could turn

this year.

“Every

the ag industry around right now.”

This year’s soybean production,

challenges,”

That continued drop in corn prices,

according to the USDA, will be the

can

in fact, has led more farmers to switch

largest on record, and twice the

communication ­— if we can spread

acreage to soybeans, a crop that has

amount

our message and get the American

recently seen a price rebound after

Chinese soybean imports, according

public

five straight years of decreases (from

to Irwin, are currently soaking up

importance

$14.40/bushel in 2013-14 to $8.95

what would be a record soybean

ethanol and the economy — it can

two years ago). This year’s harvest

surplus.

be a beautiful future for farming. All

is projected to average in the $9.40

But more supply won’t necessarily

we need is a little help — just some

range.

equate to more demand.

simple policy changes to push ethanol

“Here in the heart of the Midwest

“All else equal, [the shift to soybeans]

forward — to go from this status quo

we’re definitely going to see an

will drive soybean prices down,” says

to that beautiful future.”

increase in soybean acreage over

Irwin. “Soybeans are still not in as

corn, that’s what the market is telling

burdensome of a surplus situation

us,” says Scott Irwin, of the University

as corn. But if farmers simply shift

from

twenty

years

VITALBYPOET.COM

ago.

generation says

overcome

to

this

really of

has

Harsh.

“If

challenge

understand agriculture

its we of

the and

POET’s CO2 Group Focuses on Transportation Efficiency, Customer Service to Deliver Quality Product

by Codi Vallery-Mills Imagine being a business that turns

help.

may

over its inventory two or three times

Many of POET’S CO2 customers are

inventory

daily. It can be stressful, chaotic and a

food and beverage companies that

and need numerous “just-in-time”

downright logistics nightmare. That’s

Brad Jones, CO2 Marketing Manager,

deliveries before supply runs out.

where POET Ethanol Products’ carbon

POET Ethanol Products, describes as

Coordinating

dioxide

group,

“just-in-time” businesses. Because of

requires a great deal of communication

located in Wichita, Kan., steps in to

the lack of storage, these companies

and

(CO2)

production

turn

over

their

multiple

times

these

collaboration

available daily

deliveries

across

POET

Ethanol Products’ team. A scheduler physically manages the customers’ inventory. A fleet of trucks load CO2 at the production sites and deliver the product on time, on spec and hasslefree to customers’ inventory wherever that may be, Jones notes. “And that is a fairly complex scenario. Although it sounds simplistic, it’s not,” he says.

POET Ethanol Products aims to offer the most efficient, consistent and reliable CO2 product to customers.

Jones says POET’S CO2 division is the fastest growing CO2 producer in the United States. In the last five years, it has added six new CO2capturing facilities, bringing its total to 11, which cover five percent of the nation’s CO2 demand. Eight of those facilities are located adjacent to POET

42

VITALBYPOET.COM

POET, through our CO2 business, utilizes this clean stream of gas to supply customers ranging from local municipalities to the top food and beverage producers in the U.S. with highquality liquid CO2.

bioprocessing facilities.

accomplish a sustainability intention

CO2 is a natural byproduct of the

that POET and customers can be proud

biofuels production process. Yeast

of,” says Christian McIlvain, Vice

consumes simple sugars found in the

President — Denaturant & Carbon

corn and creates CO2. POET captures

Dioxide, POET Ethanol Products.

the CO2 and processes it into liquid

Throughout the CO2 industry, exact

form, which can be utilized a variety

end-product

of ways. Food companies like Tyson,

to be met, no matter the starting

for example, use it to prevent bacterial

material.

growth and for chilling.

production

From 2007 to 2016, around 26

feedstock byproduct is cleaner than

percent of the liquid CO2 for the U.S.

other feedstocks in the industry and

market was produced from deposits of

requires less processing.

CO2 found beneath the earth’s surface,

“POET, through our CO2 business,

according to Intelligas Consulting.

utilizes this clean stream of gas to

This CO2 is in a sequestered state

supply customers ranging from local

and is extracted by drilling wells to

municipalities to the top food and

access it. In contrast, POET captures

beverage producers in the U.S. with

CO2 naturally since it’s a byproduct

high-quality liquid CO2,” McIlvain

of the biofuel production process. No

says.

drilling is required.

POET has put in place a vertically

“When POET is able to provide

integrated system with multiple mini-

consumers with its biorefined CO2,

skid liquid C02 production operations

it reduces the need for CO2 from

located adjacent to its bioprocessing

other sources — such as the earth’s

facilities to minimize freight and offer

sequestered

a better value to its customers with a

CO2

—

and

helps

specifications

Because

of

process,

the

need biofuel

POET’s

CO2

MINNESOTA

CO2 production locations

SOUTH DAKOTA

IOWA NEBRASKA

ILLINOIS

INDIANA

OHIO

KANSAS MISSOURI

OKLAHOMA

THE ESSENTIAL PERSPECTIVE

43

consistent and reliable supply.

and the entire CO2 team, continue to

The mini-skid strategy calls for

prove the business is award-worthy.

CO2 to be piped from the nearby

“We

bioprocessing facility to a liquefaction

amount of what we were producing

facility where the gas is compressed

five years ago,” McIlvain says.

and then cooled before being sent

The

to high-pressure storage tanks that

bioprocessing facilities to capture

house the CO2 until trucks and trailers

the CO2 and the use of the mini-skid

fill and deliver the finished product to

CO2 production facilities have further

customers.

enhanced the company’s competitive

“What that allows us to do … if we

advantage.

have maintenance-related downtime

“Our ability to work hand-in-hand

at one CO2 facility, the customer doesn’t

with the production side and be part

see that production interruption. We

of the decision making that transpires

are able to continually keep them

is

supplied with CO2, which is among

our competitors don’t enjoy that

our top priorities,” McIlvain says.

advantage. We are the only one out

POET’s ability to manage the demand

there that has a vertically integrated

and provide a consistent supply

supply system,” Jones says.

through its mini-skid operations has

POET Ethanol Products’ focus will

garnered awards in the food industry.

likely continue to be on food and

Tyson Foods recognized POET’s CO2

beverage companies.

group as a supplier of the year in 2016.

“Our future I think is going to

It was confirmation of the work they

be more heavily weighted towards

had been putting into a new business

developing larger-scale partnerships

and customer service strategy.

with mega food and or beverage

“To

someone

companies. I would even go so far

like Tyson, one of the largest CO2-

as to say our future growth will be

consuming businesses in the United

heavily

States, our pace of growth with them

consolidated large food processing

and the recognition we received as a

companies. I think that’s where a lot

Supplier of the Year, the magnitude

of forward momentum is in the CO2

of that is enormous. For them to

business,” Jones says.

recognize us in such a way was again

A variety of disciplines goes into

reaffirming that the systems we have

making, marketing and delivering

put in place are working,” Jones says.

CO2

Today, Jones, along with McIlvain

at POET Ethanol Products has in

be

validated

by

have

nearly

partnership

extremely

with

important

weighted

products.

doubled

toward

What

the

POET’s

because

further

every

area

Our ability to work hand-in-hand with the production side and be part of the decision making that transpires is extremely important because our competitors don’t enjoy that advantage.

We are the only one out there that has a vertically integrated supply system.

common — from the quality control and quality analysis team to the truck drivers — is the desire to create and maintain excellent customer service.

“POET Ethanol Products is a very relationship-oriented organization. If you look beyond POET, into the CO2 manufacturing and supply industry, it looks to be a very transactional industry,

and

so

our

focus

on

relationships and customer service is something that consumers of CO2 very much seem to value. We continue to see the benefits of this approach as business and relationships with our customers grow and develop through time,” McIlvain says.

McIlvain notes it’s a good economic business model that he expects will sustain the company for years to come.

POET Ethanol Products team members accept the award from Tyson Foods as the 2016 Supplier of the Year.

RENEW

POET Wins Workplace Excellence Award POET received an award in October 2017 for Workplace Excellence from the Sioux Empire Society for Human Resource Management.

This award recognizes POET for its effective communication with team members, employeefocused and family-friendly practices, as well as its notable opportunities

Students Learn About Biofuels Production

for personal growth and

Sixteen seventh grade students

Congratulations, POET!

educational development.

from the Chatfield Schools science class went on a tour at POET – Preston in October 2017. They went through a unit on measurements and learned that every single position at a bioprocessing plant is dependent on measurements.

POET – Ashton held a tour for a group of science students from Northwest Iowa Community College that included an Ethanol 101 presentation.

46

VITALBYPOET.COM

POET – Corning Takes Part in Corning Elementary School ‘Trunk’ or Treat POET – Corning participated in the Corning Elementary School Trunk or Treat. They decorated the trunks of their vehicles for Halloween and handed out candy to Corning Elementary School students. POET – Corning handed out trick-or-treat buckets filled with candy and surprises to each student.

State Legislators Visit In October 2017 the Agriculture Task Force from

Michael Haig, Iowa Deputy

the National Conference of

Secretary of Agriculture;

State Legislators traveled

U.S. Representative David

to Sioux Falls, S.D., for their

Young; Greg Olsen, General

annual conference. As

Manager of POET – Corning;

part of their time in South

Bill Northey, Iowa Secretary

Dakota, the group toured

of Agriculture; and Tom

POET - Chancellor and

Shipley, State Senator from

had a great discussion on

Iowa’s 11th District.

how they could use their

the country. Following

Representative Young Visits POET — Corning

the tour at Chancellor, the

U.S. Representative David

group stopped by Kum

Young of Iowa visited

& Go to hear from Kum &

POET – Corning in October

Go’s Sioux Falls District

2017 as part of his Ag

Supervisor Blaine Corlett

Tour through the Third

and Growth Energy’s Vice

District of Iowa. The group

President of Development

discussed the biofuels

Kelly Manning about E15

industry, the Renewable

infrastructure and roll-out.

Volume Obligations (RVOs)

roles as state legislators to promote biofuel use across

under the Renewable Fuel Standard and Reid Vapor Pressure and went on a tour.

THE ESSENTIAL PERSPECTIVE

47

RENEW POET Celebrates 30th Anniversary POET celebrated our 30th anniversary and had several special events planned for a week of celebration from Oct. 30 to Nov. 3, 2017. Events included a special quarterly meeting with a 30th Anniversary Panel. Team members heard from those who helped form the company we know today. It was energizing for team members to hear these stories as we move forward into the next 30 years of changing the world.

Jeff and Tammie Broin; Nancy and Lowell Broin; Miranda, Alyssa and Austin Broin

48

VITALBYPOET.COM

POET Never Satisfied Community Grants As part of POET’s Never Satisfied campaign, several POET bioprocessing facilities are providing community

Never Satisfied Scholarships

grants in 2018 to improve their local communities. Nine

POET is awarding 10 scholarships

plants will partner with local

of up to $5,000 for the 2018-2019

groups or individuals and

academic year! Applicants must

invest in projects that better

be enrolled full-time in the fall

their local communities.

of 2018 at any two-year or fouryear college or university in the

Participating communities

United States. One scholarship

are POET – Coon Rapids,

is reserved for a student who is

Corning, Groton, Hanlontown,

related to a POET team member

Hudson, Laddonia, Macon,

(includes children, grandchildren,

Mitchell and Preston. The

siblings and nieces/nephews).

application deadline is

All applications must be

Feb. 16. To learn more

submitted by Feb. 2, 2018. Visit

and apply, visit Poet.com/

Poet.com/NeverSatisfied for

NeverSatisfied.

more information.

Growing a future Get involved. seedsofchange.org

PEOPLE OF POET

As Head of POET Research, Dave Bushong Focuses on Research Endeavors That Add Direct Value to POET

by BryAnn Becker Knecht | photos by Greg Latza

50

VITALBYPOET.COM

It’s

only

midafternoon

on

a

good to say and easily bursts into

cellulosic biofuels.

Wednesday and Dave Bushong, Senior

that happy laughter, which causes

“It’s hard to imagine a better fuel

Vice President of Research for POET,

a contagious smile and laughter in

when you think about it. You take

has already met with scientists from

those around him.”

all these waste materials that are

global biosciences company DSM and

As

PRC,

decaying on the surface or going to

had a meeting with representatives

Bushong worked on notable projects

landfills, and you use those to make a

from the Environmental Protection

including Project BELL, POET’s first

fuel. It’s such a terrific opportunity.”

General

Manager

at

Agency (EPA).

Steve Bly, Biochemical Manager,

It’s just a typical day for the head of POET’s Research division.

Bushong provides strategic direction to POET’s research team. The team develops innovation from the lab bench through pilot plant trials and on to commercialization.

What drives Bushong, who started at POET in 2006, is the potential for even further innovation at POET. “Every

week

there

are

new

challenges and new opportunities.

I

think

the

opportunities

this

company has before it far exceed the opportunities we saw five years ago because we’ve had so much success,” he says. “From the research side, we get approached by companies that want to collaborate with us and do business with us or bring opportunities to us. It’s exciting to see

Every week there are new challenges and new opportunities.

I think the opportunities this company has before it far exceed the opportunities we saw five years ago because we’ve had so much success.

has worked for Bushong for most of his career at POET. He remembers that Bushong took time to send him a welcome letter prior to starting as a Process Development Engineer for Project BELL in December 2008. “I felt welcomed even before I started.”

Bly says that Bushong continues to take time to recognize POET team members for their efforts. “It was common for him to recognize anybody on the team, from maintenance to operations.”

Bly recalls working long days at Project BELL and how Bushong led by example both there and at PRC. “He would be part of the oncall schedule with the engineers and managers — he shared in that responsibility. If the plant wasn’t running and we were trying to get it

all those opportunities, let alone what

started up, he’d stay late with us and

we come up with ourselves.”

we’d all work to get it running,” Bly

POET team members commend Bushong

for

taking

a

visionary

says. cellulosic pilot plant. Project BELL

approach to guiding the company’s

laid

the

groundwork

research endeavors, while making

LIBERTY,

POET-DSM

for

Project

sure that the projects they do sink

Biofuels’ commercial-scale cellulosic

their teeth into are worth their merit.

biofuels facility that opened in 2014 in

Deb Roth, Plant Manager at POET

Emmetsburg, Iowa.

Research Center (PRC) in Scotland,

Despite the challenges of building

S.D., first met Bushong in 2006 when

Project BELL — they had to tear it apart

he started there as General Manager.

and build it again — Bushong says

“It didn’t take long to get to know

what kept him and others committed

Dave with his super-friendly nature.

to the project was believing in the

He always has a smile, something

opportunity and global potential for

Advanced

THE ESSENTIAL PERSPECTIVE

Beginning at POET: ‘It took a little persistence’ Bushong

began

his

career

in

chemical engineering at Michiganbased Dow Chemical. He worked in

51

Dave Bushong discusses recent projects with Michelle Harmon, POET Research Scientist.

52

inorganic chemicals, and then moved

persistence, but I was willing to wait it

into

out,” he says.

agricultural

chemicals

and

Quantity, Quality of Research at POET has Changed

consumer product chemicals. It was

As General Manager at Scotland,

after leaving Dow Chemicals, when

Bushong focused on innovation and

he worked at Fujifilm, that Bushong

creating new research opportunities.

knew the renewable energy sector

Bushong saw early on that the

needed to be his next step.

promise of the Scotland plant wasn’t

That realization came from “just

solely in its production capacity — it

looking at the price of oil at the time and

was too small and had too many years

how leveraged the U.S. was in foreign

on it, he says — but in the research

While a lot has changed since those

oil. It was a good thing for this country

that could be developed there.

early days, the mindset of innovation

to work on energy independence, and

Early on, the research team drew on

has been a constant thread through

especially renewable energy,” he says.

its ingenuity.

POET’s research, Bushong says.

After moving back to South Dakota

“Research is expensive, so we always

Bushong has seen the quantity

with his family in 2001 — his

try to do things as cheap as possible,”

and quality of research at POET

hometown is Tulare, in Spink County

Bushong says. “We were always trying

transform. The capital investments

— he set his sights on POET, which

to find ways to save money. At one

also have increased. “We’ve done a lot

was then Broin Companies. After

point in time, we needed a mixer and

of research investment. That’s really a

applying and getting initially turned

found out that there was one on the

credit to Jeff Broin’s vision.”

down for a position in Sioux Falls,

Broin farm. We actually went to the

“When I look at it, we have a much

he applied for and was hired for the

Broin farm [in Wanamingo, Minn.] to

more cohesive approach — more

Scotland opportunity. “It took a little

get it.”

cooperation on what we want to be

VITALBYPOET.COM

Dave is also a visionary in driving the change in POET Research’s structure, focusing the team on shorter-term goals. This work has also shown his dedication and passion for the company.

we generate value for POET? He’s

rewarding.”

done a good job of trimming away the

In his work, Bushong emphasizes

extra projects that don’t add as much

the importance of teamwork within

immediate direct value for POET,”

not only POET Research but also

Carlson says.

POET’s other business divisions.

Roth says Bushong has a strong

Teamwork

work ethic in leading POET Research.

continued to make the team successful,

“Dave is also a visionary in driving the

he says.

change in POET Research’s structure,

“If you look at tenacity from a POET

focusing the team on shorter-term

standpoint, the research team has

goals. This work has also shown

a lot of tenacity. PRC certainly does

his dedication and passion for the

in embracing change. You look at

company.”

LIBERTY and the team there — you

Bly commented that Bushong takes

can’t get a more tenacious team. The

a practical approach in his work. “I

plants with the new yeast product

always found that you can relate to

we’ve rolled out and some of the

him. Having that hard work ethic

difficulties

from growing up on a farm, and that

to fight through this. We’re just a

common sense approach to problem

tenacious organization. It’s served us

solving fits well with POET’s origins

very well.”

and

tenacity

they’ve

have

encountered

and how we continue to operate.”

Bushong likes that POET Research’s work

DAVE BUSHONG

can be realized at the commercial level, not working on. Not only has the quantity

confined to the pages

of our research grown, but I think

of a textbook.

the quality has, too, as we’ve gained

“What I like about

experience.”

POET

Bushong moved from his role as

that it’s very applied.

General Manager at PRC to head

We

of

applied

POET’s

December

Research 2015.

division

Bushong’s

in

focus

Research are

a

is very

research

organization.

EDUCATION Bachelor of Science, Chemical engineering, South Dakota School of Mines & Technology

We’re

has been on making sure the team’s

not

research projects add value. This

technology to license

direction comes across clearly to team

or write papers on.

members like Dave Carlson, Principal

We’re

Engineer for POET Research. Carlson

technology

has worked at POET since 2004 and

to

has worked for Bushong since 2007.

commercialize.

“A tagline he’s used a lot since he

That’s a good fit, and

took over POET Research Institute is

I find it exciting and

looking

our

HOMETOWN Tulare, S.D.

looking to

plants

at

at take and

FAMILY Wife Diane; daughter Lauren, son-in-law Tanner and granddaughter Natalie; son Brad and daughter-in-law Katie HOBBIES Hunting, physical fitness

all about generating value. How do

THE ESSENTIAL PERSPECTIVE

53

ACROSS 1. Davis Cup org.

5. Mickey Mouse adversary __ Eagle 9. Outbuildings 14. Name for a Dalmatian 15. Nil 16. Carefully reads, with “over” 17. Screen 18. Outer layer 19. One way to stand 20. What ethanol stoves provide 23. South American dance 24. Dame Hess at a piano 25. Auto insurer with roadside service 28. Word of warning 30. Deviate 32. “___ to Billy Joe” 35. Great Lakes fish 38. Grain disease 39. Ohio politician who praised

DOWN

POET for leading the way for

the future use of biofuels in the

ag sector

43. Don’t forget yours truly!

1. Letters at Camp Lejeune

34. Diary bit

44. Enough, for some

2. Breadmaker’s wheat

36. Coffee pot

45. Org. based in Fort Meade,

3. Put ___ (sail away)

37. Florida city, informally

Maryland

4. Present

40. “... or ___ thought!”

46. Reach

5. Settle snugly

41. Looming over

48. Yearn (for)

6. Dangerous shark

42. Hardly chic

51. Napoleonic marshal

7. Peculiar expression

47. Heart of a hurricane

52. Got a good look at

8. Spare and tall

49. Temporary beach residence

55. Pulmonary pair

9. Create a home, as a spider

50. Ill will

58. POET recently made a major

10. Half a Chinese territory

53. Standard

advance in this aspect of

11. Time segment

54. ___ Malfoy, Harry Potter

cellulosic biofuels production

12. Drops on blades

antagonist

61. Subject of cooking competitions

13. Google Maps dir.

56. Funk or punk

64. Hems’ partners

21. International Red Cross,

57. Pry

65. Barge ___

58. Course of action

66. Red Sea republic

22. Org. that gets a lot of returns

59. Ornate pitcher

67. Frozen treats

25. Vacuum tube filler

60. Demolition compounds

68. Move briskly

26. Declares

61. Winter hours in Minn.

69. Beach footwear

27. Prudential rival

62. ‘Wha’d’ja say?’

70. Reactor part

29. Via, for short

63. Promising words

71. Slangy assents

e.g.: Abbr.

31. Goof up 32. Turkish Empire founder 33. Farm-machine giant

54

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55 AgCountry

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41 BBI

05

GEA Group

31

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03 Novozymes

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23 POET-DSM

45 POET

C3

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C4 POET

49

Seeds of Change

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OUT OF LEFT FIELD

The Quest to Find the Perfect Fuzzy Friend

by Scott Johnson, Data Systems Administrator, POET Man’s best friend. That phrase paints a picture of a regal,

Labradoodles, Yorkipoos and the nearly incomprehensible Saint

sturdy dog whose loyalty and commitment dwarf any human

Berdoodle, poodles can crossbreed with anything, except for

capability. Everyone can recall tales of canine heroism offering

other poodles apparently. I’m not passing judgment, just making

boundless love for their masters, regardless of emotional

an observation. I found no relevant internet search results for

reciprocity: Lassie, Rin Tin Tin, Old Yeller. Even Scooby Doo

“Hippopodadoodle,” so perhaps there is at least some biological

epitomized the selfless characteristics we admire and often

limitation.

attempt but fail to emulate.

Zoyla is our other swanky dog

I’ve had the honor to befriend and care for many dogs. Our

— a Havanese. She is a cross

family’s first “child” was a classically handsome black lab

between a cat and Walter Matthau

named Nike. We added another lab, Numa, to our family a year

from “Grumpy Old Men” — often

later. These beautiful dogs fit the stereotypical movie characters

disgruntled, but both ooze an

I knew from my childhood. Our time together was short, but

endearing, loveable quality that’s

their lives impacted ours in immeasurable ways.

difficult to particularize.

You can never “replace” these family members, but when

Maizy and Zoyla combined

our (human) children got older, we attempted to fill this void

barely

with some new fuzzy friends. My 11-year-old daughter led

computer, but that doesn’t stop

a university-level puppy research project to find the perfect

them from trying to protect our

breeds for our family (I wasn’t invited to participate other than

my

laptop

family. They viciously bark at all

to provide necessary funding):

threats: murderers, thieves, squirrels, butterflies, gentle spring

Pugs. Did you know Pugs have a natural tendency for their

breezes, the spin cycle on the washing machine. You know,

eyes to pop out of their heads? That’s a real thing. Pugs are the

dangerous stuff. Old Yeller would be proud.

equivalent of those cheap assemble-yourself bookshelves with

As frustrating and questionably well assembled these

confusing instructions and missing parts. We weren’t into a

creatures are, we still love our dogs. We know the day they set

fixer-upper project. Pugs were out.

paw inside our homes, they are family. We are also painfully

English Mastiffs are known to drool, slobber, snore and be

aware that our time together will be short-lived.

“gassy.” They can weigh more than 200 pounds. Gee, can we get

Dogs are wiser than their human counterparts in this regard.

three of them? Too big. No to the English Mastiff.

They recognize the brevity of life and filter out unimportant

Italian Greyhound? They look hungry. Too skinny.

behaviors.

Shih Tzu? I can’t even type that with a straight face.

Dogs don’t hold grudges. Dogs don’t care if you wear a brown

Chow chow? No no.

belt with black pants. Dogs don’t make fun of your sophomore

After an exhaustive vetting

school picture taken at the peak of your “awkward phase.” Dogs

process devoid of input from

welcome you back to the house after a 30-second trip to the

the theoretical head of the

mailbox. Dogs insist on showing their love by uncontrollably

household,

on

bounding into your arms for an (often sloppy) embrace. We

two designer dogs, fit for the

“we”

settled

would be well-served to apply this same sense of urgency to our

Hollywood elite.

human relationships, face-licking aside.

Maizy is a Poochon (Poodle and

Whether tough hunting companion, hand-bag-sized accessory

Bichon Frize mix). The Poodle in

or anywhere in between, man’s best friend is here to teach us

her provides the hypoallergenic,

life’s most important lesson: Life is short. We only have enough

shed-free qualities often sought

time to love each other.

after in a pet. Similar with

56

outweigh

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