Cornhusker Energy Lexington, a newly formed LLC, has plans to build a 40 mmgy ethanol facility in Lexington, Neb.  According to Tydd Rohrbough, president and financial adviser for Cornhusker Energy, construction on the plant will begin as soon as all permitting issues are resolved.  Construction is estimated to last 14 months.

Nebraska group plans to build ethanol plant near Lexingtion

Kentucky has become the 16th state to outlaw the controversial gasoline additive MTBE. Gov. Paul Patton (D) signed S.B. 13 into law late last month, banning importation, sale and storage of any fuel containing MTBE in the state beginning Jan. 1, 2006.   While the ban doesn't go into effect until 2006, the General Assembly is "strongly encouraging" a switch to ethanol two years earlier.

Kentucky bans MTBE

Manitoba drivers will now be using ethanol blended fuels thanks to a mandate passed by the provincial government.  Officials say the province may invest up to $35 million a year in subsidies, but expects to recoup much of the cost through growth of the local ethanol industry.

Manitoba mandates the use of ethanol blends

James Valley Ethanol LLC plans to break ground on a new ethanol plant June 7, 2002.  The facility will be designed and built by Broin & Associates of Sioux Falls, South Dakota.  When complete, the plant will produce 45 mmgy of ethanol.

New Broin plant near Groton, South Dakota

The U.S. Senate passed S. 517 last month. This comprehensive energy bill included a renewable fuels standard (RFS) and makes long-awaited modifications to the small ethanol producer tax credit.
 
 The RFS provisions, backed by a coalition including members of the oil industry, agricultural groups, environmental and public health groups, and the ethanol industry, bans MTBE, eliminates the reformulated gasoline oxygen standard, enhances clean air rules, and establishes a minimum renewable fuels standard that grows to 5 billion gallons by 2012.

Senate passes energy bill including RFS and small producer tax credit modifications

John E. Murtagh is an independent consultant in alcohol production, with extensive experience in many countries around the world. He currently consults for clients in Europe, North, Central and South America, the Caribbean, Africa, Asia and Australasia, in the beverage, industrial and fuel-alcohol industries. His recent and current assignments include the relocation of distilleries, the establishment of new production plants, and the conversion of fuel-alcohol plants to produce high-quality neutral spirit for vodka and other purposes. 
 
 There are few professionals in the alcohol production industry that have had a more auspicious and lengthy career than Dr. John Murtagh. 
 	
 From England, to South America, to Iran, Murtagh's life's work has taken him to the furthest reaches of the globe. After 40-plus years in the alcohol business, he is regarded as one of the industry's foremost production consultants. For the last 20 years, Murtagh and his wife have lived in the Shenandoah Valley of northern Virginia, an ocean's distance from where his interest in science began. 
 
 Early interest in chemistry

 Murtagh was born in Surrey, England, in 1936. By the age of three, World War II had begun and, eventually, "bombs were falling" on Great Britain - something Murtagh still remembers. After the war, Murtagh said, life in Surrey returned to normal and the young Murtagh devoted himself to school, especially the study of chemistry and biology. 
 	
 Through advanced placement at the University of Wales, Murtagh earned his B.S. (studying agricultural chemistry, biological chemistry, and botany - and graduating magna cum laude) in just three years. 
 	
 "One of my professors recommended me for a position serving as a liaison at a House of Seagram rum distillery and sugar mill in Jamaica," Murtagh said. "I was recruited to work on the island."
 	
 To no surprise, 22-year-old Murtagh accepted the position and soon married his Irish wife in Jamaica, he said. The young couple stayed in Jamaica for nearly four years, during which time Murtagh served as a liaison with the Sugar Manufacturers Association for the research department of the company, and controlled all research and development projects on the island. 
 	
 "It was quite a responsibility for a young man," Murtagh remembered. 
 Still with the House of Seagram, in 1963, the already successful Murtagh was asked one day by his boss, "How's your French?"
 	
 He was transferred to a whiskey, gin, rum and industrial alcohol distillery in a little French-speaking village in Montreal, Canada where he worked for six months. 
 	
 "I took French lessons every night for a month or two to brush up on the language," he said. "I hadn't spoken French since my school days (in England) some ten years earlier."
 	
 Outside of speaking English, French would be the first of three languages Murtagh would have to learn during his career. 
 	

 In Canada, John continued to build a strong foundation in the alcohol business with the House of Seagram, managing a whisky and gin distillery and bottling plant in Quebec from 1964 to 1966, a rum and industrial-alcohol distillery - along with a 1000-head cattle feedlot - in New Brunswick from 1966 to 1968, and managing the Special Assignments Section of the company's Research and Development Department in Montreal from 1968 to 1970. 
 	
 Becoming involved with the science and practical use of microbial enzymes for grain saccharification during this time, Murtagh earned his M.S. from the University of Wales (while working and studying in Canada). After defending his dissertation at the University of Wales in 1970, he was invited to return to the university to conduct further research into the use of microbial enzymes in starch liquefaction and saccharification for grain-alcohol production. He accepted the invitation and completed his Ph.D on the subject in 1972. 
 
 Working on his own 
 Already earning a reputation as an expert alcohol production chemist and consultant, Murtagh ventured out on his own in 1972, moving his family to Ireland while he worked on assignments for clients in Europe and Asia. 
 
 In Iran during the revolution
 In 1977, one of Murtagh's clients asked him to find someone to manage a beverage and industrial alcohol distillery in Iran (producing Smirnoff Vodka, Gilbey's Gin and other international brands). Murtagh ended up taking the position himself. 
 	
 "It was right during the Iranian revolution," he said. "It was certainly dangerous at times."
 	
 Nevertheless, Murtagh was able to dramatically improve not only the efficiency and capacity of the plant, but the quality of the alcohol as well. In the end, however, the religious authorities took control and closed the alcohol plant. Murtagh was forced to take an emergency flight out of the country. 
 	
 "Nothing really changed, however," Murtagh said. "The plant was reopened to produce 'surgical spirits,' and sold out the back door. Needless to say, people did not stop drinking vodka in Iran."

 
 Moving to the U.S.
 Safe at home in Ireland, Murtagh once again started up his independent consultancy, helping design and commission two new whey-alcohol distilleries for Carbery's in New Zealand (1980 and 1981) and in California (1985).
 	
 During the early 1980s, he was retained by Alltech Inc. (enzyme and yeast suppliers), working with T.P. Lyons, to visit most of the medium-sized ethanol plants operating in the United States, to provide technical assistance on all aspects of plant operations. 
 	
 "At that time, I must say, many people really didn't know exactly what they were doing in the (U.S. fuel alcohol industry), and they were eager to learn," Murtagh said. "We would talk so much that we would literally forget to eat."
 	
 John was retained in 1985 by the State of New Mexico, and in 1987 by the State of Louisiana, to examine all the fuel-alcohol plants in those states, in order to compile data for economic-impact studies. 
 	
 In 1987, John was asked to update and expand the plant details in a U.S. nationwide directory of ethanol plants. As a result of this assignment, he became very knowledgeable on sources of redundant equipment and he has served as a consultant for a major auction company, on the sale of more than thirty fuel-alcohol plants and whiskey distilleries.
 	
 "This was during the days when ethanol prices were not too good and plants were being shut down in states without decent incentive programs," he said. 
 	
 From 1982 to 1997, John was a guest lecturer at the annual Alltech Alcohol School in Kentucky, covering subjects such as the production of neutral spirit and rum. He has also served as Chairman of the World Ethanol Conference in London, since its inception in 1998. 
 	

 As as result of his assistance, several of his clients are producing some of the purest neutral spirits in the world. In 1995, he edited "The Alcohol Textbook" for Nottingham University Press, and contributed chapters on neutral spirit and rum production. In 1997, he completed the compilation and editing of the "Worldwide Directory of Distilleries", which was also published by Nottingham University Press. 
 
 Current Work
 Other recent and current consulting assignments include solving fermentation and distillation problems, correcting equipment-design faults, conducting production-plant feasibility studies, project development, staff training, plant start-ups, performance testing, serving as an expert witness and conducting industry-privatization studies for foreign governments. Since 1990, he has been an arbitrator on the National Commercial Panel of the American Arbitration Association.
 	
 Notably, Murtagh was retained in 2001 by Abengoa S.A. of Spain, to perform due diligence studies on three U.S. Mid-Western fuel-ethanol plants, resulting in a $95 million acquisition.
 
 On the industry 
 "The U.S. ethanol industry is really coming into it's own and obviously doing very well these days," Murtagh said. "I still believe in what the (U.S. ethanol industry) can achieve."
 	
 These days, Murtagh said, he is more focused on high quality neutral spirits than fuel-alcohol, but still engaged by the science of distilling alcohol. "Things have changed so much from the time I started (in 1959)," he said. "And it's all still very interesting to me."

Chemist from England began international career in 1959

Murtagh has seen 40-plus years in alcohol industry

The national media this month seemed caught up in a contest of who could spike a relatively benign press release with the most threatening headline. While a newspaper cannot significantly change the content of an Associated Press article without doing its own reporting, newspapers can - and usually do - apply new headlines to AP wire stories. So the competition begins over which paper can top the other with shear eye-popping, attention-grabbing, fact-bending headlines. I'll bet there's some type of annual newspaper award, like an Oscar. . . "This years award for creating the most dire headline from a routine story goes to. . . the envelope please." 
 	
 The recent press release by the Federal Environmental Protection Agency (EPA) regarding stricter enforcement of emission regulations from ethanol plants is a prime example. It certainly was not news to the ethanol industry. In fact, ethanol producers have been aggressively implementing solutions long before the EPA publicly expressed its concerns, and they are working closely with the EPA to be in full compliance. 
 	
 The announcement itself was not vindictive, accusatory, nor threatening. What was vindictive, accusatory and threatening were the headlines that followed: "EPA Probes Emissions from Ethanol Plants," "Ethanol Plants Accused of Spewing Toxins," "Ethanol Toxins Worry EPA." Yet, the stories all had nearly identical text. 
 	
 If technology allows compliance with emission standards in coal-fired power plants, steel plants and oil refineries, certainly controlling the emissions from roasting grain should not pose an insurmountable problem. The use of thermal oxidizers is one approach being implemented by some plants and other emerging technologies are being explored. But in fairness, I suppose using a heading that says "Ethanol Industry Aggressively Pursues Reductions in Plant Emissions," probably wouldn't win one of those coveted dire-headline awards.
 	
 I understand that my venting will have virtually no effect on the manner in which newspapers throughout America treat wire stories. But it's important - if only in a small way - to send a message to the nation's newspapers that printing inflammatory headlines is terribly irresponsible journalism. . . it's simply tabloid-style sensationalism that gets in the way of telling the real story. 
 
 
 Mike Bryan
 President, BBI International
 mike@bbiethanol.com

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The award for the most sensational and misleading headline goes to. . .

The Way I See IT

President George W. Bush delivered words of praise and support for the U.S. ethanol industry April 24 before a crowd of about 1,000 at Dakota Ethanol, LLC, in Wentworth S.D., 35 miles northwest of Sioux Falls. Speaking from a stage set up in the ethanol plant's grain storage buildings, Bush left little doubt about his support for renewable fuels. 
 	

 "I said when I was running for president, I supported ethanol, and I meant it," the President told the cheering crowd. "I support it now because not only do I know it's important for the ag sector of our economy, it's an important part of making sure we become less reliant on foreign sources of energy."
 	
 Dakota Ethanol General Manager Dean Frederickson told Ethanol Producer Magazine that he had less than a week to prepare for the President's visit. Frederickson said Secret Service agents arrived in Wentworth six days before the President, in order to scope out the area and inspect the ethanol plant.
 	
 "That's why you should always keep your ethanol plant extra clean, Frederickson quipped, adding sincerely, "We were honored to host the President's visit. It wasn't much work at all (to prepare)." 
 	
 The President's visit, to a large extent, was a show of support for Rep. John Thune (R-S.D.), who is campaigning for the Senate seat held by incumbent Sen. Tim Johnson (D-S.D.).

Bush pledges support for development of ethanol industry as part of national energy security

President visits South Dakota ethanol plant

Southern Illinois University in Edwardsville (SIUE) is constructing the world's first "public domain" ethanol research plant in the school's University Park. The Ethanol Research Pilot Plant will enable researchers to experiment with ethanol production in a 20,000 square-foot building and emulate a full-scale commercial ethanol plant.
 	
 The research facility will provide significant benefits to the ethanol industry by testing emerging technologies, exploring the development of new products and expanding the horizons of energy efficiencies. 
 	
 "The Ethanol Research Pilot Plant at SIUE is truly one-of-a-kind in the U.S. and will bring unique opportunities for research and business development to the region," said SIUE President James Walker. "This research will open new doors to efficient and affordable ways to produce alternative transportation fuels."
 	
 The SIUE Pilot Plant will have the capacity to process 200 bushels of corn into 500 gallons of ethanol per day.
 	
 The research center is being financed with $14 million in federal aid and $6 million from the state of Illinois.
 
 SIUE retains BBI International to conduct research survey		

 Plotting a path forward for the research facility is priority number one for SIUE. It is important that the work being conducted at the plant be useful, practical and applicable to ethanol producers and future producers.
 	
 To ensure that research performed at the pilot plant will be in step with the ethanol industry, SIUE has, through the Illinois Dept. of Commerce and Community Affairs, contracted BBI International to conduct an industry-wide survey. The survey will gather input from ethanol producers, process designers, enzyme producers, academia and others in an effort to build a comprehensive research baseline.
 	
 "An effective research program for the pilot plant must be synergistic with the direction the ethanol industry sees as its future," said Kathy Bryan, vice president of BBI International. "The information collected will be directly related to the production and use of ethanol and ethanol co-products."
 
 The work will be done in four stages:
 
 1. Interrogate the ethanol industry and associated private companies about the types of research they believe to be beneficial and appropriate for the facility to conduct.
 2. Discuss with the ethanol industry, and associated private and public organizations, existing and future possibilities for new and yet to be fully developed coproduct opportunities, through the bio-refinery concept.
 3. Collect information on current research projects being conducted by ethanol producers, private industry, academia, and government agencies.
 4. Present a prioritized list of potential research projects.
 	
 "This project can provide a catalyst to bring together public and private research projects in a non-threatening environment," Bryan said. "Research can be conducted in a manner that allows full disclosure, if appropriate, or in a way that provides proprietary secrecy should that be required. In short, the Ethanol Pilot Plant will provide a non-biased facility that has no vested interest in capitalizing on the results of the research being conducted." 
 
 Bothast Named as Director 
 Rodney J. Bothast has been named director of the SIUE pilot plant project. Bothast is internationally recognized as an authority on industrial microbiology and biochemical engineering. 

 	
 He earned a bachelor of science in Animal Science at Ohio State University in Columbus, Ohio, and a master of science in Food Microbiology at Virginia Polytechnic Institute and State University at Blacksburg, Virginia. Bothast also received a doctorate in Food Microbiology from Virginia Tech. Bothast's research in the field has been documented in more that 200 scientific publications. He is credited with leading research teams that have made several pioneering discoveries, including the trickle ammonia process of drying grain, the first pentose fermenting yeast, reduced energy cost for the fermentation of alcohol, and methods for solving mold damage problems in the U.S. Food for Peace Program.
 	
 "We are confident that Rod Bothast will be breaking new ground in ethanol technology in University Park," said SIUE Chancellor David Werner. "His work and the research done at the facility will have a profound impact on the state of the nation."
 	
 Bothast, who has been with the USDA's national Center for Agricultural Utilization Research since 1985, will take over as plant director on August 1.

SIUE sponsors industry-wide survey for pilot plant

Alaska - </strong>Tax Exemption: $0.06 per gallon excise tax exemption on starch to ethanol. Applies only in Anchorage and only during the winter months. No sunset. $0.08 per gallon on ethanol from biomass. Year round. Sunset: five years after startup Production Incentive: None 
 Other programs: NA
 
 Connecticut - Tax Exemption: $0.01 per gallon tax excise exemption. No sunset Production Incentive: None 
 Other Programs: NA
 

 Hawaii - Tax Exemption: Fuel blends of at least 10% alcohol are exempt from the 4% tax on retail sales. Sunset - December 31, 2006. Production Incentive: $0.30 per gallon investment credit for 1st 15 mmgy annually. Investment credit applies for 8-10 years depending on level of investment and is capped at 40 mmgy statewide. 
 Other Programs: Highway taxes on alternative fuels are 50% of the effective rate (on an energy content basis) of diesel fuel. A tax credit of 100% for investment in qualified high-technology business. Non-fossil fuel technology is included under the definition of qualified research
 
 Idaho - Tax Exemption: Excise tax exemption is to equal the amount of ethanol blended in a gallon of gasoline - not to exceed 10%. No sunset. Average exemption is $0.025/gal Production Incentive: None
 Other Programs: NA
 
 Illinois - Tax Exemption: 30% reduction of gasoline sales tax. Current gasoline sales tax is 6.25%. Sunset - June 30, 2003 

 Production Incentive: None 
 Other Programs: Ethanol Fuel Research program extended until December 31, 2002
 
 Iowa - Tax Exemption: $0.01sales tax exemption. Sunset - June 30, 2007 Production Incentive: None 
 Other Programs: A tax credit for service stations that sell 60% or more of total volume as ethanol-blended gasoline. The tax credit is $0.025 per gallon of ethanol-blended gasoline in excess of 60% of all gasoline sold.- A variety of grants and low/no-interest loans for development of a project.
 
 Kansas - Tax Exemption: Production Incentive: $0.05 per gallon producer payment for existing producers - 3 years. $0.075 per gallon producer payment for new production capped at 15M. $3.5 million cap. Sunset - July 1, 2011 
 Other Programs: NA
 

 Michigan - Tax Exemption: None Production Incentive: None Other Programs: $5,000,000 as a one-time payment was appropriated to facilitate the first ethanol production plant in Michigan.
 
 Minnesota - Tax Exemption: No tax exemption on 10% blend. $0.058 tax exemption E85 Production Incentive: $0.20 per gallon producer payment that applies to the first 15 million gallons per plant per year for up to 10 years. $3 million annual cap per plant. 
 Other Programs: No ethanol label requirement. Requirement of 2.7% minimum oxygen in all gasoline. 
 
 Mississippi - Tax Exemption: None Production Incentive: $0.20 per gallon producer payment for ten years from start of production for anhydrous alcohol. $0.11 minimum per gallon of production of wet alcohol. Must be made from Mississippi-produced feedstocks. 30 million gallon annual ceiling per plant. $37 million annual cap total Other Programs: $0.015 payment to ethanol producers for each kilowatt hour of electricity generated using biomass in a cogeneration facility at the site.
 
 
 
 
 Missouri - Tax Exemption: None Production Incentive: $0.20 per gallon applies to the first 12.5 million gallons. $0.05 per gallon to the next 12.5 million gallons produced. Applies to the first 60 months of plant production. 

 Other Programs: NA
 
 Montana - Tax Exemption: None Production Incentive: $0.30 per gallon producer credit. $3 million cap. Sunset - July 1, 2005 
 Other Programs: NA
 
 Nebraska - Tax Exemption: None Production Incentive: $0.075 per gallon for new (increased) capacity at existing facilities for up to 10 million gallons produced.
 Applicable for three years. Also, $.18 per gallon for new production up to 15,625,000 gallons produced annually. There is a 96 or 48 month sunset depending on the production start date. No payments will be made after June 20, 2012. Other Programs: NA
 
 North Carolina - Tax Exemption: None Production Incentive: None Other Programs: 25% state tax credit against corporate income tax for the cost of a renewable energy manufacturing plant and equipment. No cap on the amount. If not fully utilized the first year, it can be carried over for up to 10 years.
 
 North Dakota - Tax Exemption: None Production Incentive:$.40 per gallon for ethanol produced and marketed by producer. $2.5 million available for current biennium (2001-2003). 

 Other Programs: NA
 
 Ohio - Tax Exemption: None Production Incentive: None 
 Other Programs: A nonrefundable tax credit against corporation franchise or personal income tax liability for an investor in an ethanol production plant for which a certificate of approval of the plant's business plan has been issued by the Ethanol Incentive Board. The tax credit is equal to 50% of the money invested in such a plant, not to exceed $5,000. Ethanol or other biofuel production plants are eligible for loans, grants or bonds issued by the Ohio Air Quality Development Authority. Property that is part of an air quality facility is not subject to taxes or assessments so long as the bonds or notes issued to finance the costs of the facility are outstanding.
 
 South Dakota - Tax Exemption: $0.2 excise tax exemption on E10. $0.12 exemption on E85. Production Incentive: $0.20 per gallon producer credit. $1 million per year, per plant. $10 million total cap per plant 
 Other Programs: NA
 
 Wisconsin - Tax Exemption: None Production Incentive: $0.20 per gallon producer credit $3 million cap annually for entire program, limited to first 15 million gallons produced. An ethanol plant must first produce 10 million gallons before any payment is issued. 
 Other Programs: NA
 
 Wyoming - Tax Exemption: None Production Incentive: $0.40 per gallon producer credit. Program has a $2 million per year cap. 

 Other Programs: NA
 
 
 To update this list, contact: 
 Kathy Bryan, BBI International 
 719-942-4353
 kathy@bbiethanol.com

State Excise/Sales Tax Exemptions, Ethanol Production Incectives and Programs

Already, the 18th annual International Fuel Ethanol Workshop & Trade Show is less than a month away. This year's event is being held at the Crowne Plaza Hotel in Springfield, Illinois, the center of the world's largest ethanol producing region. Ethanol Producer Magazine's 2002 FEW Event Guide will help you make the most of your time in Springfield. 
 
 For a detailed look at the FEW agenda 
 visit the BBI International website at:
 www.bbiethanol.com/few/agenda/
 
 Ethanol Plant Tours

 Williams Bio-Energy: Be sure not to miss this unique chance to tour this 100 mmgy wet-mill ethanol production facility in Pekin, Illinois. Williams BioEnergy is one of the largest ethanol producers in the United States. Note: general registration for the Williams Plant Tour is now closed, as the tour is filled. The remaining slots are being held for participants of the Pre-Workshop Seminar, since the tour is included in the price of the Seminar. Effective May 15, anyone desiring to go on the Williams Tour must sign up for the Pre-Workshop Seminar. Space is limited.
 
 Archer Daniels Midland Company (ADM): You'll certainly want to take advantage of this rare opportunity to visit ADM's Decatur, Illinois ethanol plant. Decatur is home to ADM's world headquarters, where ethanol, hydroponic produce, bioproducts and a wide array of other products are manufactured. Lunch and transportation are provided on both tours. 
 
 Media Events
 Grand Opening of Trade Show: 
 The evening of Tuesday, June 25, all will gather in the lobby of the hotel for the FEW Trade Show Ribbon Cutting Ceremony and Welcoming Reception. 
 
 Keynote Address: 
 Illinois Governor George Ryan has been invited to present the keynote address. Gov. Ryan is a strong proponent of ethanol production and a powerful state leader. 
 
 

 Ag Day Network's ‘Weekend 
 Marketplace' with Al Pell: 
 Television host Al Pell will interview a panel of industry leaders on the developments and progress of the industry. The segment will be taped for broadcast on Ag Day network's Weekend Marketplace morning television program. 
 
 FEW Trade Show
 Over 100 ethanol industry suppliers and service providers will display their products and services at the ethanol industry's largest trade show. This is an excellent opportunity to discover the latest information on ethanol industry equipment, services, and technology. 
 www.bbiethanol.com/few/tradeshow/
 
 Pre-Workshop Seminar
 Get started before the conference begins at the pre-workshop seminar designed to help future ethanol producers better understand the steps required to build an ethanol facility in today's advanced marketplace. "Ethanol 101 and Points to Consider when Building an Ethanol Plant" is a crash course in ethanol production, plant construction, design, financing and product marketing. The pre-workshop seminar is a "must attend" for anyone considering an ethanol project. Sign up soon, because space is limited for this special addendum.
 
 Friends and Family

 Spouses and guests should take advantage of the FEW's Spouse/Guest Program. After beginning their day at the FEW Welcoming Reception on Tuesday, June 25, spouses and guests will begin Wednesday with breakfast at Tea Tyme Tea Room, followed by a historical tour of Lincoln Memorial sites, including Lincoln's tomb, Lincoln Herndon Law Office, Old State Capitol, and Lincoln Home. After lunch, it's a trip to the architectural wonderment of the Dana Thomas House and the Illinois New State Capitol. Thursday, it's downtown shopping followed by the historical New Salem State Park or Knight's Action Park for the more adventurous. 
 www.bbiethanol.com/few/spouse
 
 Special Activities 
 FEW Annual Golf Tournament: 
 Don't forget your golf clubs, because this year's tournament is sure to be one to remember. The outing is being held at Piper Glen Golf Club in Springfield. It's a "best ball" format with a shotgun start at 1:15 p.m., Thursday, June 17. www.bbiethanol.com/few/golf/.
 
 Lincoln Historical Tour of New Salem Park: 
 New Salem State Park is a historic village where history comes to life as costumed interpreters take on the characters of the people who lived and worked her more than 150 years ago. Thursday, June 27. 
 
 Knight's Action Park: 
 Adolescent fun for adults! Knight's Action Park offers numerous fun activities for all ages. Thursday, June 27. 
 www.bbiethanol.com/few/special

International Fuel Ethanol Workshop & Trade Show Event Guide

The unparalleled synergy that has made U.S. Energy Partners, LLC a unique and immediately successful ethanol production facility can be described as half hard work and half coincidence. Some might even call it serendipity: good fortune discovered by chance.

 	
 Indeed, it was a catastrophic event that made one of the plant's most prominent synergies a reality. An explosion last year at the Russell, Kansas power plant - followed by a major fire downtown - left the city with little choice but to salvage what was left of the existing facility and build an additional power plant in a new industrial park on the edge of town, adjacent to U.S. Energy Partners - the nation's first pure milo-to-ethanol plant co-located with an existing wheat gluten plant. Coincidence? Not exactly, said ICM, Inc. President and CEO Dave Vander Griend.
 	
 "In fact, the city chose the site for its power plant because of our ethanol project," he said. "It's a fortunate arrangement born from an unfortunate occurrence." 
 	
 "Fortunate" and "synergistic," Vander Griend explained, because both U.S. Energy Partners and the city of Russell benefit from the partnership. The city benefits by producing energy at a low rate and selling steam and stack gases to the ethanol and wheat gluten plants, as well as waste heat that would otherwise be vented. U.S. Energy Partners benefits from purchasing this energy at a very reasonable rate. It is a true cogeneration, cost-sharing endeavor. If the deal had not been made, the ethanol plant would have had to purchase its power from the utility provider and feed it into a typical boiler system.
 
 The power plant
 The energy center is powered by two 7.5 megawatt industrial gas turbines - each producing enough steam to meet about 25 percent of the ethanol plant's steam needs (50 percent when running simultaneously). The Taurus 70 model turbines, which are manufactured by San Diego-based Solar Turbines, a Caterpillar Company, are said to be twice as efficient as the standard reciprocating engines used in a some power plants. The turbines run on natural gas, but can also use diesel fuel, according to Adam Robinson, a Solar Turbines representative. Vander Griend simply refers to the turbines as "glorified jet engines."
 	
 Here's how the power plant works:
 	
 About one-third of the power generated from the natural gas is used to power the shaft turbines, the other two-thirds is essentially exhaust. However, U.S. Energy Partners captures 50 percent of the turbine exhaust (1/3 of the original natural gas energy) in the form of steam. 
 	
 "Therefore, we capture 2/3 - not 1/3 - of the potential energy here," Vander Griend said. "And we utilize waste heat (using the Heat Recovery Steam Generator) from the turbines to dry (distillers grains). It represents about 25 percent of the heat required to dry the coproduct.
 

 Wheat gluten plant
 U.S. Energy Partners includes a pre-existing wheat gluten plant that delivers about 1/3 of the ethanol plant's feedstock in the form of emulsified slurry. Farmland and a group of local farmers constructed the wheat gluten plant approximately five years ago. Gluten is used largely in the baking industry to give dough its character, strength and resiliency. The product is sold to bakers coast to coast. 
 	
 The wheat gluten plant was shutdown in June of last year and was subsequently purchased by U.S. Energy Partners after a partnership deal with Farmland fell through, Vander Griend explained. U.S. Energy restarted the gluten plant in early April and has begun shipments of gluten to various users throughout the Midwest. Interestingly, since all the starch products are sent to the ethanol plant, the wastewater treatment plant previously installed at the gluten facility is no longer required to be in use.
 	
 A majority of the employees at the wheat gluten plant under its previous ownership are now employed by U.S. Energy Partners, either at the wheat gluten plant or the ethanol plant, Vander Griend said.
 
 Expansion
 The expansion that is taking place at U.S. Energy Partners is largely due to the extra starch feedstock that is being streamed to the ethanol plant from the wheat gluten facility, Vander Griend explained. The rest of the feedstock is currently milo, which is in great abundance in the region (although the plant could switch to corn seamlessly, if needed). 
 	
 "From the start, I anticipated that the plant would be 40 mmgy," Vander Griend said. "But the way things were when we began, 25 mmgy was where we needed to start."
 	
 The expansion - which is a fairly standard, albeit a major project - will lift the facility to 40-plus mmgy by the end of summer. Already producing about 30 mmgy, Vander Griend said, U.S. Energy Partners is one of the largest ethanol plants in Kansas. 
 
 Carbon dioxide recovery

 Also soon to be in operation at U.S. Energy Partners is a carbon dioxide recovery plant, which will allow the facility to capture and market about 63,000 tons CO2 locally on an annual basis. It is highly likely that the CO2 will be used in area oil recovery projects. Tentatively, there is an arrangement to use the CO2 to recharge crude oil wells in the Hall Gurney field south of Russell. The CO2 is mixed with an injection fluid, then pumped into the ground to force crude oil out of the underground rock formations.
 
 Distillers grain
 The facility - which cost over $30 million to construct and employs approximately 30 people - will also generate 80,000 tons of dry distillers grains for livestock feed. The DDG produced at U.S. Energy Partners is a high protein feedstuff that will be sold to cattle feeding operations within a 50-mile radius of the site.
 
 Fagen, Inc. contractor
 The ethanol plant was built in just eight months and one day, Vander Griend said, possibly achieving a construction record for a major ethanol facility (most ethanol plants take 12-15 months to get online).
 	
 Granite Falls-based builder Fagen, Inc. was the contractor on the project. Fagen, Inc. and ICM have benefited from a strong working relationship for over seven years now, Vander Griend said. On this project, because ICM has an ownership stake in the facility, it held the role of general contractor and process design provider, while Fagen handled the construction. 
 	
 "Fagen has always been extremely committed to the work they do," Vander Griend said. "They do excellent work and always complete the job on schedule."
 	
 Like other ICM-designed ethanol plants, U.S. Energy Partners utilizes low temperature vacuum distillation and vacuum evaporation. The plant is also designed in a way that allows it to keep operating during monthly cleanings. 
 
 The partnership

 U.S. Energy Partners is a privately owned ethanol plant, primarily controlled by ICM, Inc., of Colwich, Kansas, and Nesnah Group, of La Crosse, Wisconsin. Nesnah Group's Larry Leis is president of U.S. Energy Partners. 
 	
 "We were familiar with ICM and Fagen and were looking for opportunities in ethanol production after a project in Wisconsin failed to proceed," Leis told EMP. "Dave (Vander Griend) told us he was interested in forming a partnership for a project in Kansas and the relationship developed from there."
 	
 ICM offered all of its employees an opportunity to invest in U.S. Energy Partners, and over 25 did, Vander Griend said. 
 	
 "This is a team effort for everybody," he said. "It's a true partnership."

NICHE SYNERGIES:U.S. Energy Partners, LLC discovers unique opportunities in Russell, Kansas

Customer: U.S. Energy Partners, Russell, Kan. 
 		Ethanol Plant	
 
 Date: May, 2002
 
 Background:	In early 2001, Dennis Vander Griend, design engineer for ICM, contacted Cleveland-Eastern Mixers regarding the need for agitation equipment for their ethanol project in Russell. While some ethanol producers have used circulating pump technology, ICM's standard plant designs utilize top-entry mixers. ICM believes top-entry agitation offers more predictable process results through better heat transfer and more uniform solid suspension. The result is a higher yield per tonnage processed.

 
 Specifying the Equipment: In conjunction with Cleveland-Eastern's senior application engineer, Michael Reynolds, Vander Griend specified agitation equipment with the goal of achieving the best price-to-performance ratio. The mixers would be designed to offer a balance of long-term durability and lowest cost of acquisition and maintenance. One key design factor was the excessive height of the tanks, which required shaft designs capable of withstanding higher than average bending moment stresses. Another requirement was that the transmission be capable of torque loads higher than those demanded by other processes. Without equipment properly engineered for this rigorous service, U.S. Energy would be forced to process smaller batch sizes, impacting the operational efficiency of the plant. 
 	
 A major design concern was to ensure uniform heat transfer throughout the batch. The goal was to have as low a temperature gradient as possible. In conjunction with heat transfer, solids suspension was another key concern. Without sufficient suspension, there is a risk of solids depositing in the heels of the tank, thereby restricting fermentation and heat transfer, and ultimately lowering the yield.
 	
 Agitation equipment is a very small portion of the overall plant construction costs, averaging less than 1% of the capital equipment budget. As such, specifying fail-safe equipment that ensures decades of trouble-free service does not negatively impact a plant's bottom line. Being such a critical part of the process, it is important to specify the best quality at inception. 
 
 Equipment Installed: Nine mixers total, all Cleveland's BHD series. The BHD series features helical/spiral bevel gearing, which is the most efficient for power transmission and speed reduction. 
 	
 The drives are designed specifically for mixer service and are capable of withstanding the stresses of mixing applications while maintaining accurate component alignment. The BHD series features a no-leak drywell construction, unique because it isolates the low-speed output shaft from the oil sump to prevent lubricants from leaking and contaminating the process.
 	
 ICM could choose Cleveland-Eastern Mixers with confidence given the 60 years of application expertise offered. The BHD mixer series has a proven track record of over 20 years in the marketplace as well.
 

 Process Data: While the mixers represent a small percentage of the total equipment purchased, they are indeed a key component of the process. The first step is to slurry the raw material with water. This is called the slurry tank. Next, the mash is continually stirred while being heated in the cook tube tank. This is where the starches are released and the mash is softened. The batch is then transferred to the liquefaction tanks where the chemistry is adjusted and the solids content altered to proper levels. From there, the mash is transferred to each of three large fermentation tanks. Here, the mixers agitate the material very slowly to promote the fermentation process and adequate heat transfer throughout the batch. Once the process is complete, the fermented batch is fed to the beer well tank which is close to one million gallons. The solids are then sent to the stillage tanks and are later converted into feed for livestock. If there should be any failure in the process, a syrup tank is on stand-by as a diversion area so that the entire process will not shut down. 
 
 Testimony: Ron Dunbar, plant manager at U.S. Energy Partners says "The BHD's are work horses. We installed them and were able to forget about them. We had a problem at installation and Cleveland-Eastern responded immediately with a short-term fix until the issue could be resolved. They really stand behind their products." n
 
 For more information about this equipment, contact: Leslie Donkin, EMI, 860-669-1199

Top-entry agitation equipment may offer more predictable process results

The controversy regarding ethanol plant emissions has evolved in part from changes in the emissions sampling methods. Some methods indicate higher emissions compared to USEPA Method 25A, which is the method that most ethanol plant permits have relied upon. 
 	
 Method 25A is commonly employed for volatile organic compound (VOC) testing because it is simpler and less expensive. Method 25A measures total hydrocarbon concentrations using a heated flame ionization detector, calibrated against methane. Since many VOCs do not give the same instrument response as methane, errors occur where such compounds are present in the emissions. Method 25A also does not provide any information on VOC speciation.
 	
 More recently, some ethanol plant testing has used a modified USEPA Method 5 sampling train, which collects emissions in water impingers for later laboratory analysis. Four impingers in series are used, with one impinger spiked with a 1% sodium bisulfite solution for capture of acetaldehyde. The impinger solutions are analyzed in a laboratory for the target VOC compounds using gas chromatography with a flame ionization detector (GC/FID), except for formaldehyde, which uses ultraviolet spectrophometry. This method provides data on VOC composition, but is limited to those compounds that are water soluble.
 	
 A producer that has applied these two methods side-by-side at a CO2 scrubber noticed a difference of about 100% in the measured VOC levels, with Method 25A yielding the lower result. This difference may vary depending on the exact composition of the VOC emissions. 
 	
 Additional VOC test methods are available, including direct sampling of the stack emissions using GC/FID. Because variation in the results should be expected from different emissions sampling methods, it is important that any emission limits specified in a permit be matched to the intended compliance sampling method. Producers may need to conduct additional emissions sampling in order to assess whether modifications to existing permits are needed and determine the required level of allowable emissions.

Some methods indicate higher emissions compared to EPA Method 25A, which is the method that most ethanol plant permits have relied upon

Emissions testing methods explained

At least six ethanol plants in Minnesota either have thermal oxidizers or are currently installing thermal oxidizers, according to Todd Potas, of Minneapolis-based ERG Environmental Consultants. Potas told Ethanol Producer Magazine that Minnesota ethanol producers have been dealing with emissions concerns proactively for well over a year. 

 	
 According to ICM, Inc. President and CEO Dave Vander Griend, ICM just finished installing a thermal oxidizer at the 17 mmgy Al-Corn, in Claremont, Minn.
 	
 Agri-Energy, a 17 mmgy ethanol facility in Luverne, Minn., recently acquired the necessary permit to install a thermal oxidizer and boiler system as well. 
 	
 These developments follow the successful installation of a thermal oxidizer/waste heat boiler pollution control system at Gopher State Ethanol in St. Paul. Early this month, the Minnesota Department of Health reported that Gopher State Ethanol has reduced its emissions by more than 95 percent after installing a $1.2 million thermal oxidizer last year. The report recommended that the thermal oxidizer be tested at least twice in the next five years, and expanding the oxidizer to incinerate other gases.

Thermal oxidizers comon with  Minnesota ethanol producers

An April 24 Environmental Protection Agency letter sent to 23 ethanol producers in multiple states addressed a growing concern over ethanol plant emissions of volatile organic compounds and carbon monoxide "many times greater than that stated by the producers during the permitting process." 
 	
 EPA asked the producers, along with the Renewable Fuels Association, to attend an information meeting in Chicago June 3, to discuss the issue. Most are expected to attend.
 	
 The following is a direct excerpt from the letter: 
 	
 "We believe these (ethanol) facilities are not properly permitted and controlled with respect to a number of pollutants as they were initially constructed or modified," a Region 5 EPA official said in the letter. "We expect that this circumstance is not unique to the tested facilities, but rather is common to most, if not all, ethanol facilities.
 	
 "Normally, U.S. EPA would remedy the violations at each of these facilities individually, through a lengthy period of information gathering followed by the traditional enforcement process. By this letter, we would like to invite representatives of the Renewable Fuels Association and Region 5 ethanol production facilities to attend a brief meeting. . . for the purpose of gauging your interest in exploring an expedited resolution to these issues. We feel that this approach can give certainty to the industry by quickly addressing both state and federal concerns and resolving them on terms most favorable to the industry."
 	
 The meeting was originally scheduled to be held May 6, but has since been rescheduled for June 3. 
 	

 For more information on the meeting, contact U.S. EPA Region 5, 312-353-2072.

EPA Region 5 sent letter to 23 ethanol producers to address emissions concern

EPA emissions meeting to be held in Chicago June 3

Canada's Iogen Energy Corp., developer of a process to turn forest and agricultural waste into a low-emissions auto fuel, has drawn a $29 million investment from oil giant Royal Dutch/Shell Group RD.AS, which is on the prowl for alternative energy sources. Privately owned, Ottawa-based Iogen focuses on cellulosic ethanol production. 	
 	
 Shell, the Anglo-Dutch giant that owns 72 percent of Shell Canada Ltd. SHC.TO, the country's No. 2 integrated oil firm, will own "just over 20 percent" of Iogen for a return on investment, an Iogen executive said. Shell is not the first petroleum firm to pump money into Iogen, which employs about 100 people and owns a C$35 million ($22.3 million) demonstration plant.

Anglo-Dutch giant will own  over 20 percent of ethanol cellulosic ethanol plant

Shell buys stake in Iogen

BBI International has been exploring business opportunities in India for the ethanol industry. For the past twenty years, India has been exploring biofuels but only until recently has the nation been looking seriously at expanding the industry. The worsening air quality in many of India's cities has been drawing much attention from the government. In order to start mitigating air pollution, New Delhi began converting city busses and taxis to CNG. However, infrastructure to deliver CNG has not been able to keep up with demand. Long lines at the filling station have resulted. Despite these problems, air quality has improved and now many cities in India are considering a CNG program along with low sulfur diesel, ethanol and/or biodiesel to help solve air quality problems. 
 
 BBI to co-host international biofuels convention in India
 Due to the increasing interest and support for biofuels in India, the Confederation of India Industries (CII) has invited BBI International to co-host an International Convention on "Biofuels: Driving India's Future," November 7-9, 2002, in New Delhi. The purpose of this conference is to address a long-term strategy and policy for biofuels production and use in India. BBI Director of Conferences-International Development Angela Graf traveled to India this spring to meet with CII and several representatives from the agricultural, distillery, and automotive industries to discuss the important issues that need to be addressed in order to establish a biofuels program. 
 	
 In April, Jeff Graef, BBI's newest staff member, was invited to give a presentation on biofuels at BangaloreBio, a conference on biotechnology held in Bangalore, the Silicon Valley and emerging biotechnology center of India. While in India, Jeff met with engineers and businesses to gain an understanding of their views on upcoming developments in ethanol and biofuels production. Both of these trips by BBI made it clear that there is incredible interest for ethanol, ethanol-diesel and biodiesel development in the country.
 
 5% sollution?There several are challenges to overcome in the process. The mix of fuels and vehicles are different in India than in other parts of the world. More than 75% of India's motor vehicles are two and three wheelers. The inherent inefficiencies of these two-stroke engines mean that they contribute over 70% of the total hydrocarbon and 45% of the carbon monoxide emissions. Many of the larger Indian cities require catalytic converters for these vehicles. Trials of 5% ethanol/gasoline blends have been conducted and proved successful (e.g., low ethanol blends are compatible in engines). A 10% ethanol blend trial is now being conducted. Results are due to be released this September. Legislation is being considered by the Ministry of Petroleum & Natural Gas to mandate the use of 5% ethanol blends in eight of India's twenty-eight states. This law, if enacted, would create a significant market for ethanol. Ethanol- and bio-diesels also have high interest as India consumes almost seven times more diesel than gasoline. 
 
 India's Production Capacity

 India currently produces about 300 million metric tons of sugar cane per year, which is processed in nearly 400 sugar cane factories and approximately 250-300 distilleries. Most of the distilleries are relatively small with a typical production capacity of around 300,000 liters per year of primarily beverage and industrial grade ethanol. The predominant feedstock for alcohol production is molasses - less than 10 use grains. The distilleries are running under capacity and could expand their operations to produce fuel-grade ethanol. Estimated production capacity is approximately 1.3 billion liters per year while the installed capacity is approximately 2.7 billion liters. 
 
 Expansion and Opportunities 
 Since few distilleries have the capability to produce anhydrous ethanol, the initial business opportunities in India will likely be to supply technologies to dehydrate ethanol. Eventually, as India's biofuels demand grows, there will be a need for state-of-the-art fuel ethanol production facilities. The future of this expansion will depend largely on India's political commitment to biofuels use. However, India's sugar industry and distillers industry are strongly in support of providing biofuels to India's growing transportation fuels market and providing a product that will help air quality, the nation's economy, and reduce dependency on foreign oil (India currently imports 70% of their fossil fuel demand). 
 
 Potential Exporter?
 India is well positioned to supply biofuels to Europe and other countries developing a biofuels program. India is blessed with large expanses of agricultural lands and long growing seasons. In many regions, two crops of sugar cane are grown per year. As demand grows, India's distillation industry will become more interested in increasing plant production efficiency to compete more effectively in the world market. Oilseed crops are also common and could provide sufficient feedstocks for India to become a major producer of biodiesel. Furthermore, India also has extensive biomass resources for cellulose-ethanol production.

BBI International explores business opportunitiesin India for Western technology providers

Support for ethanol, other biofuels strong in India

Surrounded by farm leaders from across the nation, President Bush enacted over $190 billion in Ag spending over the next six years by signing the new farm bill on May 13, 2002. 
 	
 "We're pleased that the President acted quickly to sign the bill, which includes a new counter-cyclical safety net program for corn farmers, program base acres and partial yield updates, a new energy title to promote expanded ethanol production, and value-added agricultural market development grants. The new farm bill also makes enhancements in current conservation, credit, research, rural development, and trade programs," said Brent Rockhold, Missouri Corn Growers Association (MCGA) president and farmer from Arbela, MO. Rockhold also serves on the Public Policy Action Team for the National Corn Growers Association, which played a key role in lobbying Congress for the new farm bill.
 	
 Included in H.R. 2646, the Farm Security and Rural Investment Act of 2002, was a continuation of the Bioenergy Program for expanded bioenergy (ethanol or biodiesel) production.
 
 Bioenergy Program
 Under the program, payments will be made to eligible producer, based on the quantity of bioenergy produced during a fiscal year that exceeds the quantity of bioenergy during the previous fiscal year.

 	
 Producers of less than 65 mmgy - An eligible producer that produces less than 65 mmgy of bioenergy shall be reimbursed 1 feedstock unit for every 2.5 feedstock units of eligible commodity used for increased production.
 	
 Producer of 65 mmgy or more - An eligible producer that produces 65 mmgy or more of beanery shall be reimbursed 1 feedstock unit for every 3.5 feedstock units of eligible commodity used for increased production.
 	
 Eligible Commodities - Commodities eligible include wheat, corn, grain sorghum, barley, oats rice, soybeans, sunflowers seeds, rapeseed, canola, safflower, flaxseed, mustard crambe, sesame seed and cottonseed. Also eligible are cellulosic materials such as hybrid poplar and switch grass. In addition, any oils and fats that may be used to produce bioenergy will be eligible.
 	
 Funding - Not to exceed more than $150 million for each of fiscal years 2003 through 2006. $0 allocated for fiscal year 2007.
 	
 Other Limitations - No eligible producer shall receive more that 5 percent of the total amount made available.

Bush enacts over $190 billion in ag spending by signing new farm bill

Five delegates from Mainland China visited the offices of BBI International on May 4th. It was one of the final stops on a trip that took them to Brazil, Washington, DC, Alabama, Illinois, Denver and Hawaii. 
 	
 The group, headed by Professor Dehua Liu of Tsinghua University of Beijing, was focused on gathering information not only on ethanol production from grain, but also to try and educate themselves on the progress of the cellulosic side of the industry. One of the delegates, Mr. Wang Dongguuang, vice director of the Heilongjiang Provincial Development Planning Commission, said, "China is very focused on the development of an ethanol industry. This trip is designed to gather as much information as possible about the status of the current industry worldwide and its future."
 	
 Discussions with BBI centered primarily on the World Fuel Ethanol Congress planned for Beijing in October 2003, as well as the possibility of conducting a couple regional workshops later this year. While in Colorado they also spent a half-day at the NREL facility in Golden, reviewing the progress of the cellulose technology.
 	
 Professor Liu said, "Tsinghua University is excited to work with the emerging ethanol industry in China and hopes that the Chemical Engineering Department of the University can become a research center to help develop improved technologies for ethanol production."
 	

 Over 10 representatives from China have applied for visas to attend the 2002 Fuel Ethanol Workshop in Springfield in June.

Chinese delegation visits BBI International in Colorado

Major international energy provider BP announced this month that it is moving ahead with a plan to switch from MTBE to ethanol in California during the fourth quarter of this year. As the state's largest gasoline marketer, BP's action is good news for consumers concerned with MTBE drinking water pollution and new farmer-owned ethanol plants that were counting on the emergence of a strong ethanol market in California.
 	
 "BP's announcement reaffirms their status as an environmental leader, and is welcome news for consumers anxious about further MTBE water contamination," said Bob Dinneen, president of the Renewable Fuels Association (RFA). "I commend BP for making this courageous decision. It reflects BP's commitment to eliminating the use of MTBE as soon as possible. I believe California consumers will reward oil companies like BP that make an early switch away from MTBE. And I hope other companies marketing gasoline in California will follow BP's lead. There is simply no reason for any California oil company to risk further drinking water supplies by continuing to use MTBE."
 	
 BP's announcement is the first public commitment by a refiner to eliminate the use of MTBE as originally scheduled since California Governor Gray Davis delayed the state's MTBE ban by one year, until January 1, 2004.

BP switches from MTBE to ethanol in California

Appointed by GEC Chair Governor Bob Holden, Anita Randolph serves as Administrative Chairperson of the Coalition. Randolph is an employee of the Missouri Energy Center. 
 
 EPM: Explain your role with the Governors' Ethanol Coalition (GEC). In what capacity does your office serve the Coalition?
 
 Randolph: Missouri Governor Bob Holden serves as the 2002 Chairman of the Governors' Ethanol Coalition. Administrative support for the GEC is provided by several states. The Missouri Energy Center will provide assistance throughout the year by coordinating meetings, providing draft correspondence, recommending policy statements and actions, and performing necessary research to support the GEC. 
 
 EPM: How long have you been the Administrative Chair of the GEC?

 Randolph: Beginning each calendar year, the GEC's vice chair from the previous year assumes the role of chair for one full year. As part of that responsibility, the chair provides the necessary resources to support the administrative needs of the coalition. 
 
 EPM: Why does the GEC exist? How was it formed?
 
 Randolph: In September 1991, Nebraska's governor asked other governors interested in creating a group devoted to the promotion and use of ethanol to join him in Lincoln, Nebraska. From that meeting, the Governors' Ethanol Coalition emerged. Membership in the Coalition doubled from nine to 19 states during the first year. 
 
 EPM: How many member governors - and states - are currently involved with the GEC?
 
 Randolph: At present, the Coalition represents 27 member states along with Brazil, Canada, Mexico and Sweden.

 
 During 2002, Missouri Governor Bob Holden serves as the chair of the GEC and North Dakota Governor John Hoeven serves as vice chair. In January 2003, Governor Hoeven will serve as the GEC chair during 2003. Nebraska Governor Mike Johanns served as past chair (2001).
 
 EPM: Is the GEC a bipartisan coalition?
 
 Randolph: Yes. The Coalition's bylaws require that the chairman and vice chairman be from different political parties. During 2002, Missouri Governor Bob Holden (D) serves as chair while North Dakota Governor John Hoeven (R) serves as vice chair. Governor Hoeven will serve as the chair of the GEC in 2003.
 
 One of the Coalition's guiding principles is development of beneficial policies that will garner bipartisan support. GEC represents a broad cross section of interests from across the country. Today, the GEC membership includes 16 Republicans, 9 Democrats, one Independent and one Popular Democrat. One of the greatest strengths of the coalition is its ability to 
 approach the nation's energy issues from a nonpartisan standpoint. All the members believe a national energy plan must include renewable transportation fuels.
 
 EPM: What is the Coalition's ultimate membership goal? All 50 states?

 
 Randolph: Any governor that has an interest in promoting ethanol is encouraged to join the Governors' Ethanol Coalition.
 
 EPM: How does the GEC operate? How does it act? Explain the role of the GEC committees.
 
 Randolph: The Coalition operates through consensus and close collaboration with its member states, with Governor Holden and Governor Hoeven providing suggested policy positions. The Coalition's committee structure provides technical support for the policy positions and initiatives as well as suggesting policy initiatives.
 
 EPM: How many times a year does the GEC meet? What topics are discussed?
 

 Randolph: The full membership of the GEC formally meets at least three times per year. The GEC conducts much of its business on a regular basis through on going contacts and staff interaction.
 
 The GEC addresses a wide array of energy, environmental and economic development topics. Research and development, marketing and public policy are often discussed. Proposals regarding national energy policy have created a wealth of opportunities to provide important information about alternative fuels, particularly ethanol, to our lawmakers in Washington, D.C. A lot of the GEC's recent attention and focus has addressed the need for a national renewable fuels standard that would make clean ethanol fuels available to expand our supply of transportation fuels and help reduce our dependency on foreign oil. 
 
 EPM: What accomplishments has the GEC helped the ethanol industry reach?
 
 Randolph: Now in its 10th year, the GEC has helped to meet several domestic and international accomplishments for the ethanol industry. These include the creation of several international alliances promoting the production and use of ethanol-based fuels. These partnerships help expand ethanol production and worldwide use through shared research, joint trade ventures and future market development.
 
 On the energy and environment policy front, we have successfully increased the awareness by local and national policy makers of ethanol's environmental and economic benefits, including global climate change benefits. The GEC also has offered authoritative policy recommendations and formal testimony before the United States Congress, the United States Environmental Protection Agency and other energy and environment policy forums.
 
 We have successfully championed the extension of the federal ethanol tax exemption until 2007.

 
 The GEC continues to build on its successful development of nationwide market research about ethanol and its benefits. The Coalition is actively promoting a national E85 (85 percent ethanol and 15 percent blend of gasoline) infrastructure that now includes more than 70 fueling sites across the country.
 
 The Coalition works with several closely aligned organizations, including the National Ethanol Vehicle Coalition, a national organization advocating and educating consumers about E85. Through this partnership, the Coalition has helped to coordinate the purchase of flexible fuels vehicles, capable of operating on up to 85 percent ethanol, by Coalition member states and other fleets.
 
 Most recently, the Coalition was instrumental in assuring that proposed federal energy legislation embraced a national renewable fuels standard.
 
 EMP: What primary challenges and opportunities is the GEC currently focused on? How will those objectives be met?
 
 Randolph: For environmental and health concerns, the nation has decided to clean up the fuels which have powered America for nearly a century. The federal Clean Air Act identified numerous areas of the country that must reduce or eliminate their pollution levels. Those areas must change the gasoline and diesel fuels used, either year-round or seasonally. Now through the next several years, cleaner and cleaner fuels such as ethanol, biodiesel, natural gas and propane will be used in cars, trucks and buses. The Governors' Ethanol Coalition wants to make certain that as the decisions on America's fuels are being made, ethanol and other clean home-grown fuels have a role in the nation's transportation fuels market.
 
 EPM: Does the GEC support only grain-based ethanol production?

 
 Randolph: As a fuel grown and refined from plant materials or waste right here in the U.S., ethanol represents one of the nation's and the world's greatest opportunities for developing a cleaner source of energy, lessening dependence on imported fuels, and stimulating our local, state and national economies.
 
 EPM: What is the GEC's primary goal for 2002? Will it be accomplished?
 
 Randolph: Our priority is the continued growth of ethanol use in new mass markets where it helps form the foundation of a national energy policy based increasingly on domestic, renewable energy sources that improve environmental quality.
 
 The formation of a national energy policy and the adoption of a national renewable fuels standard provide a tremendous opportunity for the U.S. to increase its supply of clean transportation fuels, provide energy security, environmental improvements and economic development.
 
 The benefits of ethanol are quite remarkable on a national level. The United States' ethanol industry has provided more than 40,000 jobs and will increase household income by more than $12.6 billion dollars over the next five years. 
 

 Its demand for corn increases net farm income by $12 billion dollars annually. And it will create a $4 billion dollar net gain to the taxpayers over the next five years.
 
 All of these benefits support our farmers and develop our rural economies. And ethanol provides environmental benefits such as a 3.6 million-ton reduction in carbon dioxide emissions during 2001. 
 
 A national renewable fuels standard would triple ethanol use during the next decade. The GEC, along with the Renewable Fuels Association, the National Corn Growers, the National Biodiesel Board and many other organizations, strongly supports the adoption of a national Renewable Fuels Standard. Reliance on such a standard would reduce crude oil imports, thus reducing the U.S. trade deficit. And it would facilitate the creation of hundreds of thousands of new jobs, resulting in stronger U.S. household incomes.

Administrative officer Anita Randolph answers questions about the Coalition

GEC has helped meet several domestic and international ethanol industry accomplishments

Both Archer Daniels Midland (ADM) and Minnesota Corn Processors, LLC (MCP) have confirmed that they have had preliminary talks about ADM acquiring MCP.  If the discussions lead towards an agreement, the sale would be subject to a number of conditions, including satisfactory completion of due diligence and approval by MCP's board of directors, shareholders and appropriate regulatory agencies, the companies noted.

ADM talks with MCP about acquisition

In an effort to reduce the amount of MTBE that is imported to Thailand, the government plans to promote private ethanol production.  Previous efforts to promote ethanol have failed due to their focus on the use of ethanol and not production.  Under the new promotion, ethanol producers would be exempt from excise taxes and would not have to contribute to the state oil fund.

Thailand government shows support for ethanol

MBC Holding Co., the parent company of Minnesota Brewing, has named Jim Freeman of Collegeville, Penn. as new CEO for the West Seventh Street brewery and Gopher State Ethanol Plant.  Freeman replaces Jack Lee, who will remain as president of the brewery.  Freeman is a board member of MBC Holding Co.

May 2002

Columns

The Way I See IT

Featured

Murtagh has seen 40-plus years in alcohol industry

SIUE sponsors industry-wide survey for pilot plant

NICHE SYNERGIES:U.S. Energy Partners, LLC discovers unique opportunities in Russell, Kansas

Top-entry agitation equipment may offer more predictable process results

Support for ethanol, other biofuels strong in India

GEC has helped meet several domestic and international ethanol industry accomplishments

May 2002.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Columns

The Way I See IT

Featured

Murtagh has seen 40-plus years in alcohol industry

SIUE sponsors industry-wide survey for pilot plant

NICHE SYNERGIES:U.S. Energy Partners, LLC discovers unique opportunities in Russell, Kansas

Top-entry agitation equipment may offer more predictable process results

Support for ethanol, other biofuels strong in India

GEC has helped meet several domestic and international ethanol industry accomplishments

May 2002