New hygiene auditing strategies are helping ethanol plants maintain greater overall yeast health, decrease operational downtime and pinpoint the cause and location of issues faster. Two top service providers in the plant hygiene space share insight on how leading-edge hygiene protocol, along with high-level adherence to standard operating procedures, can transform the way ethanol producers mitigate infection and stay clean.Phibro Ethanol's name is virtually synonymous with antibacterial products and plant hygiene, having provided ethanol plants with solutions to optimize performance for many years. Despite an ever-evolving portfolio of products and services that are both advanced and practical, the Phibro team still relies on a motto that is simple. They call it the “3 Es.”According to Anne Chronic, director of market analytics for Phibro, the goal of the 3 Es is to control bacteria and keep a plant in a generally exceptional condition. She says enhancing yeast health should always be the first focus. Extensively cleaning a plant comes second. And eliminating bacteria is the third “E.”“Having a healthy yeast population is vitally important,” Chronic says. Because bacteria that impact the health of a yeast strain grow five to eight times faster than the yeast itself, the process of maintaining the health of yeast is, realistically speaking, a never-ending battle.Chronic often provides producer clients with an analogy that resonates, she says. Think of plant health and yeast performance like your lawn at home. When that lawn is in nice shape and well-manicured over time, it performs better against stress versus a lawn allowed to have bare patches. A healthy lawn allows less room for weeds to grow. In a neglected lawn, issues are more likely. The same concept applies to an ethanol plant. A biorefinery will perform better under stress (summer heat, bacteria, etc.) when it is well maintained over time. Phibro's Kinetx line of extremely robust yeast products help producers maintain consistency across the inherent stressful conditions present in fuel ethanol fermentations.“Overall plant throughput requires a commitment to the process of prevention,” Chronic says. “If you reduce overall fouling and deposits from the very beginning, you can reduce the chance of something forming.”Sounds simple, right? It can be, Chronic explains, but it requires strategy. Producers need to focus on more than just the frontside of the plant. Keeping backend processes healthy also helps eliminate overall downtime.Phibro’s team has created a blueprint for implementing strategies that work throughout the plant. They also have new tools, along with tried-and-true products, that work in conjunction with their strategies.Phibro Ethanol has developed and refined a Total Cleaning Program (TCP) for producers that is turnkey. It combines clean-in-place (CIP) with improvements to plant operational efficiencies. Because every plant is unique, Phibro’s TCP is customizable. However, each approach utilizes deposit-prevention tech along with advanced detergent rinse aids with CIP formulations.Phibro's TCP focuses first on reducing the rate and degree of deposit formation in ethanol plants with Phibro SI inorganic scale inhibitor and Phibro DC organic deposit control formulations.This technology is coupled with the application of PhibroClean detergent cleaner in pre-CIP rinse cycles, and the use of Phibro AC acid plus detergent for CIP to provide ethanol plants with a highly effective deposit control and CIP program.&nbsp;Phibro will work with lab managers and plant managers to develop an administering process for a suite of Phibro products. Or, plants can now automate the use of cleaning products. &nbsp;Automating Clean&nbsp; Chronic calls Phibro’s TCP automation system a game changer. The system utilizes a PLC-driven automated dosing and reporting system that delivers reliable, accurate and­ consistent application of Phibro's range of deposit control and CIP cleaning formulations. The &nbsp;system also provides a means for ethanol plant management to track chemical usage and overall CIP costs in real time.&nbsp;The PLC system controls multipurpose dosing skids that are capable of dosing at different application rates to multiple plant locations automatically, without the need for additional interaction or control from plant operators. This frees up plant personnel to focus on other plant operations while the system provides reliable and consistent automated dosing of deposit prevention and CIP formulations. The system can also include a VPN link to allow for remote access to the PLC control system, enabling remote technical support, performance monitoring and software updates along with Phibro's in-plant technical support.&nbsp;“The really nice part about the TCP automated process is that it reduces complexity,” Chronic says.Producers trying to manage the purchase and acquisition of multiple products from multiple sources can eliminate that hassle. The TCP automated system was built for multiple products that all have proven chemistries and work together. Phibro can customize the system per the individual plant, set up monitoring parameters and problem solve based on data.“If a producer comes to us and says ‘We &nbsp;are all over the map on our cleaning program,’ the automated system is a great option,” she says. Or, if they can’t seem to get their yeast health or overall plant throughput dialed in correctly during the summer or other common times of disruption, “we have solutions,” Chronic says, “automated or otherwise.”Good Hygiene Requires Good Data&nbsp;&nbsp; Prior to starting in ethanol around 2006, Chronic worked in brewing. Her food science degree has, in part, informed her work in ethanol production throughout her tenure at Phibro. She’s done fermentation analysis, brought production data more into the fold, and is now the director of market analytics. She does training, helps keep Phibro on the leading edge of technical content and provides insight for a self-paced online course called Ethanoledge.“I make it a priority to stay up on our technical content,” she says. “I also do most of our internal data management.”According to Chronic, the data is very telling. “The data shows, for us, that we can reduce deviation and improve overall performance,” she says.But to do that, ethanol producers need to know when, how and where to collect data. Fortunately, Phibro has specialized experience in that area. The company’s work with clients troubleshooting ethanol plant processes starts with the idea that data collection—whether its related to “dead legs,” fermenters or other high-impact areas of a plant—is extremely important for ethanol plant decision-making. The approach to sampling should be coordinated and consistent. Yes, it is good to have data about a specific sample location. But it is even better to be systematic and collect a series of samples throughout a process flow (from beginning to end) or across fermentation to understand each sample, at a specific time under a well-documented set of variables. It is easier to find issues, or solutions to issues, when data sample comparisons are true “apples to apples” scenarios.The process doesn’t all have to be done at once, Chronic explains. Some samples can be collected one day, and others later. They just need to be done with a goal in mind. Doing so will provide better data and, likewise, help service providers like Phibro get to the root cause of an issue—and prescribe a solution—sooner. Ethanol producers ready to get more strategic about their data and sample collection can work with Phibro to start mapping out a custom system.Hygiene Auditing Specialists&nbsp;&nbsp;&nbsp; Caleb Ogden, senior technical services manager for Lallemand, also works with ethanol plants on hygiene auditing. He has presented on the topic at industry conferences and possesses firsthand knowledge of how data monitoring and consistent auditing procedures can benefit a plant. Continuous monitoring is crucial to high-efficiency fermentation, he explains.&nbsp;For Lallemand, Ogden goes into plants and manages trials, optimizing and leading hygiene audits. The team looks at process parameters and standard operating procedures, or SOPs, &nbsp;for cleaning across the facility. On the hygiene front, they utilize bacteria analysis, including borescopes in isolated pipes, to find biological film and other organic material that might be built up. They also use thermal imaging to detect heat differentiation on the fermenter shell during CIP to verify CIP solution coverage.”Along with those steps, the audit team looks at prime trouble spots like mash coolers and heat exchangers. If a big problem shows up downstream of the heat exchangers, they use microscope technology to diagnose further. The audits also include discussions with plant operators and management to determine if cleaning processes are optimally placed (more on that later).&nbsp;After the audit, Lallemand can provide a full suite of antibiotics that are proven and effective for a range of issues related to fermentation bacteria management, coproduct integrity and other considerations. In some cases, plants have worked to wean their hygiene control methods away from antibiotics to target markets that put a premium on products that can guarantee the absence of antibiotics. But at the end of the day, antibiotics work and are proven, Ogden says, and most plants rely on them to safely provide consistent, reliable results.The Importance of Self Auditing&nbsp;&nbsp; It is crucial to regularly measure and verify the effectiveness of an ethanol plant hygiene regimen, and that starts with self auditing. The audits need to look at the data collection and measurement tools being employed at a facility. This should include the calibration of measurement tools in both the lab and process.“I go back to these areas all the time because I see issues there so often,” Ogden says. “You can’t separate process parameters from the success of plant hygiene. You have to consider everything.”&nbsp;Ogden stresses the importance of regularly checking the operability of temperature probes and transmitters throughout the plant. They don’t need to be checked every day, but a regularly scheduled verification is important. As a former lab technician, Ogden knows how important the tools of data collection are, and how time consuming it can be if someone questions the results from the lab, requiring lab personnel &nbsp;to check their equipment to provide certainty.When Ogden’s team performs a hygiene audit, they include an extensive list of findings. Often, the process-related issues are prominent and clear, along with the need for certain antibiotics.&nbsp;“No matter the situation, stress reduction at the plant that results from hygiene related solutions almost invariably leads to improved monetary return, which is important given the increasing input costs ethanol facilities are facing,” he says.Author: Luke Geiver&nbsp;&nbsp;&nbsp; Contact: writer@bbiinternational.com&nbsp;

2023-12-06 - Watching Over Plant Hygiene (Ethanol Producer Magazine)

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Specialized hygiene strategies, increasingly layered with automation, are helping today’s ethanol plants stay healthy. Consistent, accurate monitoring is the key.   

Watching Over Plant Hygiene

In the pursuit of decarbonization, diesel, the energy-dense fuel that powers industrial and commercial transport globally, is difficult to replace. ClearFlame Engine Technologies has developed a solution to this problem, using a cheaper and lower-carbon fuel: ethanol.&nbsp;BJ Johnson, CEO and cofounder of ClearFlame, says the company’s technology reduces lifecycle CO2 emissions by over 40 percent per diesel-equivalent gallon. And, even though ethanol has approximately 1.65 times less energy density than diesel, Johnson says ClearFlame’s technology reduces overall fuel costs by 42 percent.Solving the Energy Problem&nbsp; ClearFlame was born out of a desire to decarbonize and, somewhat ironically, increase energy consumption simultaneously. Johnson and ClearFlame co-founder Julie Blumreiter completed their graduate degrees at Stanford University. They were inspired by one of their professors, Chris Edwards—a thesis advisor to the entrepreneurial duo—who talked about the two halves of the energy problem, Johnson explains. One half of the problem is reducing greenhouse gas emissions and achieving sustainability, while the other half is rooted in the need to increase energy consumption—where it’s needed, and done right—to improve quality of life in developing countries.&nbsp;In the U.S., 70 percent of goods are moved via diesel truck, and that percentage is even higher in developing countries, Johnson explains. Nearly a billion people in the world still lack basic access to electricity, and the diesel engine is even more vital in those areas. Ethanol’s affordability and low carbon intensity make it a substitute that addresses both issues. “If we need the diesel engine for driving our local economies and energy equitability, then we need to find a way to detach from the petroleum cost and carbon challenges of petroleum diesel fuel,” Johnson says.Johnson’s Ph.D. work, which wrapped up in 2015, proved the science behind the idea of using ethanol to power a diesel engine. As part of the Chain Reactions Innovation program, in which the U.S. Department of Energy helped entrepreneurs by offering use of lab space, Johnson and Blumreiter relocated to Chicago to partner with Argonne National Laboratory to achieve proof of concept. “We demonstrated everything we did at Stanford, but on apparatus designed to mimic a heavy-duty diesel engine, showing it would work in the type of engine built by Caterpillar or Cummins,” Johnson explains. In early 2020, ClearFlame raised its first seed funding with Clean Energy Ventures and developed a production engine platform, reaching a stage of development referred to as “proof of product.” Series A funding was raised in 2021 and used to put the first trucks on the road.&nbsp;The next step for ClearFlame’s technology is to commercially deploy both trucks and stationary gensets while growing the company’s order book. “Our first sales of both units, the truck and the genset, are, far and away, the biggest goal, after which we can really start to scale in the market,” he says.&nbsp;Johnson highlights the value and utility of ClearFlame’s engine technology, explaining that truck and generator applications invite many potential uses. “At ClearFlame, we work with a professional diesel engine rebuilder to put our tech on a diesel engine to become a ClearFlame-enabled engine,” Johnson says. “If you can send one of those engines to a truck packager, and one to a genset packager, then you can reach multiple market verticals with the same tech.”&nbsp;Developing Market and Technology&nbsp;&nbsp; This year, ClearFlame began beta pilot demonstrations for both the truck and genset units as part of the company’s sales efforts. “We’ve got five of the ten biggest fleets in the country queued up for pilot demonstrations,” Johnson says, explaining that some pilots were done and others were just beginning. “We’re looking to convert our first orders in the same time frame.”As of late October, two of the five planned pilot tests had been completed with major fleet owners. One pilot test ran for five weeks and the other for eight, both on their heaviest routes, pulling 80,000 pounds and fueled by E98—almost pure ethanol. &nbsp;In the five-week test, the truck did one roughly 400-mile shift per day, filling up at 800-plus miles and achieving a 45 percent carbon reduction. The eight-week pilot ran 500 miles per day with roughly 1,000 miles between refills, and achieved 42 percent carbon reduction. “We had 96 to 97 percent uptime and load delivery success across multiple months, so basically comparable delivery metrics to what they get on [diesel],” Johnson says. “It does everything you expect diesel to do, but with an over 40 percent reduction in fuel cost and carbon emissions.” The 42 percent cost reduction is calculated on a per-mile basis using diesel-gallon-equivalent fuel pricing, Johnson explains, saving trucking companies money despite ethanol’s lower energy density.&nbsp;Range issues are a common concern among potential EV drivers, and though that isn’t an issue for ClearFlame trucks, access to fuel at retail stations is a challenge. Johnson explains that while E98 may be in tanks at many gas stations for blending to make E85 or E15, it’s not available for sale and, if it were, a larger dispenser would be needed to fill the 200- to 250-gallon tanks of semi-trucks. “This particular truck has a 250-gallon tank on it to get a little bit more range, but a 200-gallon tank is more typical,” Johnson says. “Most fleets we talk to actually don’t feel a need to increase their tankage, and just refill a little more often—even if your 1,200-mile-range diesel truck only gets 800 miles on ethanol, that’s still twice as far as you need as far as pitstops,” Johnson says.&nbsp;As ClearFlame works to sign deals with large fleets across the country, trucking companies have enough buying power to potentially pressure truck stops like Love’s, Pilot and Flying J to install ethanol tankage along trucking routes with pumps that are capable of filling a truck in 10 minutes instead of a smaller pump used to refill passenger vehicles. “You’re going to have to put the investment into a larger dispenser, and we are working with NREL and a few groups on getting all that certified, you might as well go for the fuel that is the most cost-effective and environmentally friendly, and that’s actually E98 rather than E85,” Johnson says. &nbsp;Ethanol-Fueled Stationary Power&nbsp; This year, ClearFlame executed pilot projects with major utilities and started working toward commercialization of its gensets for use in EV charging. Eventually, ClearFlame plans to expand into other hard-to-decarbonize markets that rely on diesel engines, like mining.&nbsp;Three genset pilot tests were scheduled in 2023: one in July, another in late August, and another that started in October. Johnson explained that gensets can provide vital emergency backup power during natural disasters or power outages. Diesel gensets can only be used in emergency situations due to their emissions performance &nbsp;but ClearFlame’s genset would be clean enough for a business to use day-to-day for “peak shaving,” reducing peak electricity costs for a business or institution, as well as doing demand response with a local utility. EV charging is another important potential use, Johnson explains. EV charging stations are using a growing amount of electricity—an amount some areas of the country do not have the infrastructure to handle—and biofuel-powered gensets are a good solution to that problem. Fuel access would also not be as much of a challenge, since genset units generally carry sizable fuel tanks.Selling Points&nbsp; While the economics of ClearFlame engines make sense, Johnson knows many companies will still be drawn to the optics of purchasing EVs. Although ClearFlame’s engine has lower carbon emissions per mile than the average EV, Johnson explains that many companies remain interested in PR value over the actual sustainability of the product. “If you’re looking to get press releases—hate to use the word—but yeah, ethanol’s not as sexy as an EV, and that is coloring some people’s choices,” he says.ClearFlame’s technology has the potential to help everyday consumers through reducing the cost of goods by bringing down fuel prices, as well as reducing emissions. Trucking companies stand to benefit from the cost savings and reduced carbon intensity of their fleet, Johnson explains. “Some of these large corporations have made public promises about what they’re going to do in terms of carbon reductions,” he says. “It’s still an open debate about whether the government will be able to enforce that, but I think there’s also a real way in which the private sector will enforce sustainability promises. People want to do what’s right by the planet, and if company A is offering a greener solution that’s equivalent to what company B is offering, people are going to vote with their dollars.”Cost reduction is so attractive to companies that even those without sustainability goals are interested, simply because of the practicality of the technology. Ethanol producers could significantly benefit from this technology being rolled out commercially as well, since every 40,000 semi-trucks using ethanol—1 percent of the total market—increases ethanol demand by 1 billion gallons.Johnson argues that there is a need for both EVs and ethanol, cautioning against pursuing an “ethanol versus EV” argument. Ethanol can beat EVs in the market by being both cheaper and greener, he explains. Advocacy for ethanol, educating consumers about its sustainability and affordability is important. Conversations about electrification often hinge on passenger vehicles, but Johnson emphasizes the importance of decarbonizing across the board while being realistic about the limits of electrification. “Electrification is a ‘when not if’ [eventuality], but that ‘when’ is going to happen faster in passenger cars than it will in trucks,” he says. “The solution to not needing gasoline will come sooner than the solution to not needing diesel. And right now, people think ethanol can only solve the short-term issue, the gasoline one, and ClearFlame is proving that’s not true; we can also solve the diesel problem, but the ethanol industry must be willing to commit to displacing any fossil fuel where it’s used, not just gasoline in passenger cars.” Author: Katie Schroeder&nbsp;&nbsp; Contact: katie.schroeder@bbiinternational.com

2023-12-06 - A Clear Road Ahead (Ethanol Producer Magazine)

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A U.S. startup making diesel engines compatible with ethanol is driving toward commercial readiness. The CEO of ClearFlame talks about the market, pilot testing and the haul ahead.  

A Clear Road Ahead

Biofuel markets tend to be inversely affected by global tumult. Oil price volatility and supply disruptions caused by war and strife can amplify the need for alternatives. But while foreign conflicts may have indirectly strengthened demand for ethanol in 2023, analysts say the year’s relatively strong numbers are a result of persistence, not opportunism. At press time, international markets for U.S. ethanol were steady through the third quarter, as both new and perennial takers—from Canada to Southeast Asia—showed no signs of backing away from buying and blending more product.&nbsp;Total ethanol exports for the first nine months of 2023 reached 1.04 billion gallons (generating $2.83 billion in revenue) compared to 1.07 billion gallons ($3 billion in revenue) exported during the same period in 2022. With 120 million gallons of ethanol exported in September, the industry appears to be on track for a solid 1.3-billion-gallon year. &nbsp;&nbsp;Ed Hubbard, general counsel and vice president of government affairs at the Renewable Fuels Association, says a growing number of countries around the world are not only committed to using more ethanol but highly intent on seeing it through in the near term. In September alone, the U.S. exported ethanol to more than 40 countries, according to the USDA Foreign Agricultural Service—and buyers in as many as 80 nations take in U.S. ethanol every year. The demand for ethanol, Hubbard says, is being “calcified by unstable geopolitical situations,” but more broadly driven by carbon reduction goals. He says the current strength of global ethanol markets points to a growing international resolve to break away from problematic energy sources amid the dual challenges of conflict and climate change, with the lion’s share of growth being driven by the latter.Diverse, Dependable Markets &nbsp; &nbsp; &nbsp;&nbsp; America’s closest ally—both geographically and politically—remains its top ethanol buyer. While other large markets tend to be hot and cold, Canada is reliable, holding steady with high volume and pursuing growth through increased blending targets. “The EU market kind of died down after a countervailing duty action, [and] Brazil is challenging, but our most consistent market has been Canada. Not only has it been consistent and [high volume] for years, but it’s also a growth market,” Hubbard says, explaining that Canada’s latest Clean Fuel Regulations are expected to put the nation on a path to E20 use in the next decade.&nbsp;Likewise, the U.K. has been increasing its ethanol imports and making commitments to higher blending. In fact, the U.K. was second only to Canada in purchases of U.S. ethanol in September, taking in 13.65 million gallons in that 30-day period.&nbsp;Conversely, Hubbard says, the once reliable ethanol market of the European Union remains fickle. The EU’s volatility, he says, is the result of certain member states, France among them, advancing protectionist policies, as well as the Renewable Energy Directive being tough on grain-based fuel. Despite the challenges posed by the EU market, Hubbard says it is vital to keep working to reopen lanes of opportunity there. That type of long-game approach—partnership, persistence, patience—has worked well for the industry in other places around the world.Stable international trade relations have been key to the growth of ethanol exports to newer markets like Southeast Asia, Africa and Central America, Hubbard explains. “I don’t think these markets are just organically growing,” he says. “We’ve been [intentionally] trying to open them. We’ve spent a lot of time, as an industry, on education and international market outreach. And we’re seeing the results of that work—very positive results.”&nbsp;Some of the most promising growth markets for U.S. ethanol include Japan, Vietnam and South Korea. Hubbard says the RFA and other groups have been making a concerted effort to get into the Japanese market. When the industry made its first real push into Japan, it was hamstrung by outdated numbers being used to calculate the carbon intensity of U.S. corn ethanol. “We just started trying to update those numbers, making sure we were available,” Hubbard says. “In Japan, they look at your environmental score—your carbon intensity reduction—and those that have better carbon intensity reduction [are given access to] a larger share of the market. We were kind of held to a very low share given that the numbers and data they were using were outdated.”As they have worked to update the numbers to better reflect modern farm practices, U.S. ethanol’s market share in Japan has increased from less than 40 percent to over 60 percent. Japan uses ETBE, an ethanol-based ether, as a gasoline blending additive. Before the numbers were updated, Brazilian ethanol—with an ostensibly better CI—was actually being sent to the U.S. to be formulated into ETBE destined for Japan. Today, U.S. ethanol is being used. “Now it’s a lot more efficient,” Hubbard says, adding that the next step is to encourage Japan to start practicing direct blending, as much of the world does.Vietnam is another exciting market with an E5 blend in place. “The Asian and Southeast Asian market has been very important for us,” Hubbard says. “We think it represents a growth area, and the movement in Vietnam is consistent with that.” &nbsp;Two African countries taking notable steps toward ethanol blending are Ghana and Nigeria. Hubbard says an effort was made to pursue an E5 or E10 ethanol blend in Nigeria in the past few years but was set back by attempts to “game the system.” More recently, Nigeria started giving ethanol blending another try. “They’re now making [another] effort to do it—and do it right this time,” he says.Several Central and South American countries have been showing promise as potential markets for U.S. ethanol, including Columbia—the world’s third-largest taker of U.S. ethanol in the month of September—along with Ecuador, Guatemala, Panama, Costa Rica and the Dominican Republic. “These Central American markets are starting to make a really committed push toward ethanol blending, as well as ethanol production and use,” Hubbard says.While very large export markets are still coveted, especially those that are consistent, market diversity is important for maintaining robust, stable export volumes, Hubbard explains. Exporting smaller volumes to a variety of countries, rather than relying too heavily on a few big destinations, allows for greater stability year-to-year. That strategy has become all but necessary as some of the historically large markets for U.S. ethanol—formerly “bread-and-butter” destinations like Brazil—have severely tightened.Trying to Broker with Brazil&nbsp;&nbsp; Shipping U.S. ethanol to Brazil, economically, has become a challenge since the implementation of a 16 percent tariff on incoming ethanol last year. And, as of January 1, the tariff will be 18 percent. Hubbard says the concerns over imports of Brazilian sugarcane-based ethanol, which qualifies as an advanced biofuel under the U.S. Renewable Fuel Standard and benefits under California’s Low Carbon Fuel Standard, are “very valid.” And these concerns are becoming even more pressing as corn-based ethanol production grows in Brazil, he explains.According to the USDA-FAS, ethanol production in Brazil increased by 7 percent in 2023, due to an increase in both sugarcane and corn ethanol production. While Brazil produces just over 30 billion liters (8 billion gallons) of ethanol per year, it has the potential to produce more. Its production facilities, on average, have one-third the capacity of U.S. ethanol plants, but they are more numerous. Brazil currently has 351 first-generation ethanol plants, including 333 that process only sugarcane feedstock and 18 (note: the University of Illinois’ Farmdoc Daily recently reported the number to be 20) that process only corn or both corn and sugarcane (“flex-feedstock”), according to the USDA-FAS. The country also has two cellulosic ethanol plants.As more corn ethanol plants come online in Brazil, Hubbard says the South American nation is likely to export more of its sugarcane ethanol to the U.S.—where it qualifies for credits—while using its corn-based ethanol at home. Brazil’s restrictive tariffs on U.S. ethanol are “a thorn in the side” of the domestic industry, he says. However, Brazilian imports into the U.S. in 2023 were under 50 million gallons as of late October, indicating that the import-export relationship between the two nations may not be grossly imbalanced. &nbsp;As concerned as the industry is about Brazil’s 18 percent tariff, the RFA and other groups realize the challenges associated with getting the U.S. to impose retaliatory tariffs on Brazilian ethanol. Hubbard says broader trade issues are at play and U.S. trade officials continue to look for ways to have cooperative dialogue with Brazil. However, the industry is starting to lose patience. “We know it’s probably better to use honey rather than vinegar—carrots rather than sticks—but there just don’t seem to be many carrots still available for our trade officials to use,” he says. “While you do have some folks in the U.S. ethanol industry that would like to see a more aggressive counter-tariff strategy, there still remain many others that believe Brazil could eventually return to being an important, stable destination for U.S. ethanol.”Capturing Coproduct Markets&nbsp; DDGS is an equally vital export for U.S. ethanol producers, bringing in almost as much value, or sales revenue, as ethanol exports. Matt Fitzthum, manager of coproducts marketing with CHS, offers insight on DDGS markets and exports in 2023. “We work with the ethanol industry from the moment corn leaves the field to when it’s processed into ethanol and distillers grains and shipped to far-off countries,” he says. “We are involved in the value-added supply chain of ethanol from start to finish.”Although coproduct production has remained steady, DDGS export volumes dropped slightly in 2023. Total distillers grains exports for the first three quarters of the year reached 8.09 million metric tons, at a value of $2.54 billion, compared to 8.57 million metric tons exported during the same period last year, at a value of $2.62 billion, according to early November data. &nbsp;Weather conditions were a problematic factor in restricting some DDGS exports. Droughts in some regions led to more usage of DDGS domestically as crop yields in Nebraska, Kansas and Oklahoma suffered, and lowered the water levels in the Mississippi River. “We have had significant issues with navigation on the Mississippi River. Our largest portal to the world—and often most efficient—is barge traffic down the Mississippi River,” Fitzthum says. “We saw almost historically high barge freight prices, and I would say once-in-a generation difficulties in navigating the river over the last two falls and late summers.”Other factors driving down DDGS exports include an increase in the value of the U.S. dollar, a positive global crop outlook and geopolitical/military conflicts. The U.S. regularly exports distillers grains to nearly 70 countries. Mexico remains the largest buyer, followed by South Korea, Vietnam, Indonesia and Turkey. The three export countries in the top ten that have increased imports are Turkey, Colombia and Taiwan.&nbsp;China, once the number one destination for U.S. DDGS, has effectively blocked the American coproduct from entering the country in recent years with multiple duties that amount to a roughly 66 percent tariff. In November, China’s Ministry of Commerce announced that it intends to extend the tariff for another five years. &nbsp;The market for high protein coproducts has been expanding as the demand, interest and understanding of the higher-value product has grown. The main regions receiving high-protein coproducts are North Africa and the Middle East. Fitzthum explains that the market for DDGS and high-protein coproducts are quite different, as DDGS is a well-known commodity, and high protein is a value-added product with more exacting buyer requirements. Even though high-protein feed sells for a premium, it does not automatically give producers higher profits—at least not immediately, as the local and destination markets need to become comfortable with new production—Fitzthum explains. Dry-grind ethanol plants are not designed with the technology to produce high protein, so ethanol producers must invest in new technologies and debottleneck to make the product. “Quite frankly, if you’re bringing a hundred bushels of corn in, you’re still only going to get a hundred bushels (equivalent) of product out,” Fitzthum says. “If you make high-protein distillers grains, you’re going to get less [volume of standard] distillers grains.”As high-protein investments are paid off and the market develops, Fitzthum believes the profitability of these value-added products will increase, and producers will also see the benefits of debottlenecking. “As the industry matures and buyers become more accepting of higher-protein corn coproducts, we should see the value of them increase relative to traditional DDG, because they are a value-added product,” Fitzthum says.Distillers corn oil, another vital coproduct for ethanol producers, remains a mostly domestic product, explains Andrew Ryan, national account manager for DCO with CHS. With renewable diesel plants coming online in the U.S., most of the volume not used for feed is sent to plants currently operating or in the process of startup. Ryan gave the example of two renewable diesel plants in California that are slated to come online in the first quarter of 2024, explaining that the plants have been acquiring DCO for feedstock in preparation for startup. “There are some [DCO maximization projects] going on this year, and we’ve seen the [desire] to get as much corn oil out as possible. The increase hasn’t been massive yet, but with the upcoming demand pull from RD, most plants are going to try [extract] as much oil as they possibly can.”With its integration into the biorefinery supply chain, CHS has prioritized improving infrastructure that will help the whole industry work better. Recently, the company made a $73 million investment in improving its Myrtle Grove, Louisiana, export terminal with storage and handling upgrades. “We, as a company, see for the near future, the export market as a sort of ‘grocery boat,’ where customers aren’t looking for necessarily one large boat of one commodity,” Fitzthum says. “They’re looking for a boat with multiple commodities and possibly serving multiple points of discharge.”Author: Katie Schroeder &nbsp;&nbsp; Contact: katie.schroeder@bbiinternational.com&nbsp;

2023-12-06 - BOUNDLESS: Exporting To More Places  (Ethanol Producer Magazine)

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Still facing obstacles in historically large markets like Brazil and China, exports of U.S. ethanol and distillers grains met expectations in 2023, thanks to their largest customers in North America and myriad small and 
mid-sized buyers around the world.     

BOUNDLESS: Exporting To More Places 

If there’s anything we’ve learned from the last two years of EU climate and energy policy, it’s that Europe needs a new way to think about biofuels and its contribution to transport de-fossilization—as well as the strategic importance of ethanol production. As the EU enters a new political cycle with European Parliament elections and a new Commission in 2024, there is some cause for optimism.At the recent World Ethanol and Biofuels Conference in Brussels, several speakers noted the promising path ahead for ethanol demand worldwide, even if the markets will change and European biofuel regulations sometimes lack coherence. For example, more EU countries have adopted E10 (despite holdouts such as Spain and Italy) and there is growing interest from auto manufacturers in higher ethanol blends like E20. There is also growing interest in using ethanol as a feedstock in the biopolymers industry. These kinds of shifts are essential if the EU wants to achieve its goals for climate change mitigation, food security and energy independence.The fact is, ethanol biorefineries across the EU contribute to several European strategic objectives including climate change mitigation; energy independence; food security—food-vs.-fuel concerns being a myth—and increased autonomy with other commercial products like carbon dioxide captured and processed for beverage and industrial applications.When it comes to transport decarbonization, Europe can’t afford to bet on only one solution. Not only is that not common sense, it’s also the finding of the European Court of Auditors, which in a recent report warned against the current EU strategy of focusing only on electric vehicles as the way to de-fossilize road transport.In the coming months, the EU will be trying to clarify its definition of CO2-neutral fuels. That will be important because even with the recent market growth in sales of battery-electric vehicles, the fact is that Europeans continue to buy mostly petrol and hybrid cars. These cars run on liquid fuel and will be on the roads for a long time to come. Low-carbon liquid fuels are the only way to reduce their emissions.But new cars could also be produced that take better advantage of the existing benefits of biofuels. In France, for example, many motorists use E85 fuel. One study showed that hybrid cars running on E85 are actually more climate-friendly than battery-electric vehicles when total lifecycle emissions are considered. In India, a new flex-fuel hybrid Toyota is being commercialized that can run on 100 percent ethanol, but uses its electric engine 40-60 percent of the time.Innovations in production are already increasing the GHG-savings score of renewable ethanol, in some cases to more than 90 percent compared to fossil fuel. More countries could adopt higher blends of ethanol as the standard petrol, making an immediate impact on transport emissions. Which brings us to another important factor: A socially inclusive transition to carbon neutrality should empower all European citizens, not just those who can afford new technologies, and all countries, not just those that can afford new infrastructure.Europe needs more than just one solution to achieve real transport de-fossilization today, and tomorrow, without hitting consumers’ purchasing power or forcing them to abandon their needs and desire for independence and mobility.&nbsp;In the months ahead, as the political rhetoric around EU energy and climate policy intensifies, we encourage policymakers to adopt this more inclusive and technology-open approach. It’s a win-win-win situation for achieving EU strategic goals, supporting domestic agricultural production and industry, and making sure all Europeans can play a role in the fight against climate change.Author: David Carpintero&nbsp; Director General of ePURE, the European renewable ethanol association

2023-12-06 - Time for a European Shift on Renewable Ethanol  (Ethanol Producer Magazine)

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Europe needs a new way to think about biofuels and its contribution to transport de-fossilization—as well as the strategic importance of ethanol production. As the EU enters a new political cycle, there is some cause for optimism.

Time for a European Shift on Renewable Ethanol 

I am not a fan of writing the traditional January column—the “out with the old, in with the new” piece, the list of New Year’s resolutions, or any of the articles either predicting how the world will change or how we can make it change. It’s not because I find them tired or cliché as much as the likelihood of being provably wrong, in print. So, I predict the ethanol industry will concentrate on carbon reduction in 2024, and one of the most contentious topics will continue to be carbon capture and sequestration (CCS) pipelines.&nbsp;No topic has created as much controversy in the ethanol world as the CO2 pipeline saga that played out over the past year. The ethanol industry is no stranger to protest, but until now, has largely prevailed in the face of controversy because proposed projects met, and often exceeded, requirements of laws and regulations governing whatever was being built or operated. More importantly, when complaints were filed, elected and regulatory officials acknowledged protesters’ concerns, while defending the projects’ legal rights to move forward. Both Navigator CO2 and Summit Carbon Solutions expected to be granted permits for their proposed CO2 pipelines, since both projects met or exceeded safety requirements and would comply with applicable laws or even stricter proposed laws at the time the companies applied.But when Navigator cancelled its Heartland Greenway pipeline project, it cited the “unpredictable nature of the regulatory and government processes” as the reason. Elected and regulatory officials, in response to protests, delayed decisions, held lengthy hearings and, in some cases, enacted new regulations making it difficult or impossible to build the pipeline that was perfectly legal when the project was proposed. While court fights could restore pipeline builders’ legal rights to move forward, justice delayed is justice denied, and the longer the delay, the less likely projects can be completed in time to receive federal incentives—a key piece of the economics of building CCS pipelines to reduce carbon pollution and keep ethanol relevant in future fuels discussions.The public face of pipeline opposition has been farmers concerned about landowner rights, along with some carefully stoked fears about pipeline leaks. But after Navigator’s cancelation, the most visible grave-dancer and credit-taker was the Sierra Club, whose Iowa organizer announced, “The people united to resist Navigator at every level in every corner of every state, and we won.” The Sierra club has a long history of opposing energy infrastructure projects by employing any available argument and co-opting any sympathetic cause to stall or prevent construction, even when those arguments and causes don’t match theirs. If “landowner rights” has traction to slow CO2 projects, the Sierra Club hopes you’ll accept their support and ignore their strong opposition to “modern agriculture” and desire to control what farmers do with their land. They’re not holding “We support ethanol, not pipelines” signs, either. They oppose both. They know ethanol and CCS pipelines reduce carbon intensity, making ethanol competitive with electric cars, so they call both “false solutions” that extend petroleum use.The most damaging piece of anti-CCS pipeline rhetoric, however, may be the one casting projects as tax grabs creating extra profits for plants that will be just fine without them. In the real world, ethanol plants that can sequester or utilize CO2 without a pipeline will, and they’ll earn credits up to a buck per gallon or more. At three gallons of ethanol per bushel, do the math—how cheap would a plant without CCS have to buy corn to compete and stay in business? This issue doesn’t start and stop at the ethanol plants.Author: Ron Lamberty&nbsp; Chief Marketing Officer,&nbsp;&nbsp; American Coalition for Ethanol&nbsp; rlamberty@ethanol.org

2023-12-06 - Where Does This Pipeline Go? (Ethanol Producer Magazine)

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The U.S. ethanol industry will continue to focus on carbon reductions next year, and one of the most contentious topics will be the development of carbon capture and sequestration (CCS) pipeline systems. 

Where Does This Pipeline Go?

Years ago, at a trade conference, I asked a top DDGS marketer why the industry worried more about exports than domestic sales. It may have been a dumb question, but I asked it anyway. It simply didn’t make sense to me that so much emphasis was placed on non-U.S. coproduct markets, which consumed less than a fourth of our total output. The ethanol side was even more lopsided, with less than 10 percent of total U.S. volume leaving the country as an export. And still, those foreign shipments seemed to be regarded as equal in importance to vastly larger domestic volumes. What the marketer told me, while sort of obvious now, was enlightening at the time. He said our industry pays inordinate attention to exports—even when they represent a fraction of the total market—because they are “outlets that can totally dictate” what happens here at home. “That outside 10 percent,” he said, “sometimes determines everything about the 90 percent we sell here.”I don’t know if that was sage advice on trade economics, but it stuck with me, and I couldn’t help but reflect on it while reading this month’s cover story, “Boundless: Exporting to More Places,” on page 14. I’ve been around the ethanol industry long enough to have experienced the boom-and-bust, on-and-off trade cycles we’ve had with China—which is currently off—and the decades-long, back-and-forth, often sparring relationship we’ve had with Brazil—also currently turned down. What we’ve learned by losing those big markets is that overreliance on a few huge, foreign buyers is a bad idea. So today, destination diversity is our top trade priority, and it’s working. The industry is building new ethanol and coproduct markets (for both distillers grains and hi-pro) around the world, replacing those once huge but never really friendly destinations with myriad small and medium-sized takers, along with strong overland markets in bordering Canada and Mexico. The idea is that it’s better to have a bunch of small, consistent and receptive buyers than a couple of huge, hostile ones.Ideally, markets for ethanol will simultaneously expand both domestically and abroad. While all the hype around sustainable aviation fuel is very well deserved, SAF isn’t the only exciting thing on the horizon for ethanol. In “A Clear Road Ahead,” on page 24, we give readers an update on the progress of ClearFlame Engine Technologies, which is logging more hours on both ethanol-powered diesel trucks and stationary gensets, the former being part of the hard-to-decarbonize segment and the latter being a sustainable EV-charging solution. The story’s biggest takeaway: Every 40,000 semi-trucks using ethanol (E98) in the future—just 1 percent of the total diesel market—will increase ethanol demand by 1 billion gallons. That’s a figure worth contemplating.With so much emphasis on clean fuels, we sometimes forget that it all starts with clean plants—literally. In “Watching Over Plant Hygiene,” on page 30, we get impeccable advice from two leading purveyors of antimicrobial products and plant hygiene solutions. We learn that healthy fermentations are as much about monitoring the process as treating it. Fortunately, we have specialists that help producers create customized blueprints for implementing hygiene strategies that work throughout the plant. From auditing, sampling and SOP adherence to tried-and-true product application, CIP and automated dosing, developing a top-tier ethanol plant cleaning program has never been more in reach. &nbsp; &nbsp; &nbsp; &nbsp;Enjoy the read.Author: Tom Bryan&nbsp; President and Editor&nbsp; BBI International

2023-12-06 - Diversifying Outlets, Near and Far (Ethanol Producer Magazine)

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The January issue of Ethanol Producer Magazine addresses the importance of export markets to the U.S. ethanol industry. The issue also provides an update on Clear Flame Engine Technologies and discussion of plant hygiene solutions.  

Diversifying Outlets, Near and Far

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January 2024

January 2024

Columns

Time for a European Shift on Renewable Ethanol

Where Does This Pipeline Go?

Diversifying Outlets, Near and Far

Featured

Watching Over Plant Hygiene

A Clear Road Ahead

BOUNDLESS: Exporting To More Places

January 2024.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Columns

Time for a European Shift on Renewable Ethanol

Where Does This Pipeline Go?

Diversifying Outlets, Near and Far

Featured

Watching Over Plant Hygiene

A Clear Road Ahead

BOUNDLESS: Exporting To More Places

January 2024