Ethanol industry leaders are calling the 2002 National Ethanol Conference: Policy & Marketing one of the most prolific and meaningful industry summits in the last two decades. The ethanol industry's 7th annual national gathering drew more than 620 producers, marketers and policy makers to San Diego, Calif., Feb. 27-March 1.

 	
 On the precipice of what both ethanol and oil industry analysts are calling an "historic agreement" to enact a renewable fuels standard (RFS), Renewable Fuels Association President Bob Dinneen and American Petroleum President Red Cavaney announced a "new era of cooperation" in San Diego with a display of mutual respect and shared interest.
 	
 "The political stars are aligned, the strategic alliances are in place," said Dinneen in his state of the industry address Feb. 28. "I give Red Cavaney and the API great credit for recognizing the value of an RFS. . . Our objectives are no longer mutually exclusive."
 	
 While presenting the RFA's outlook on legislative opportunities and challenges ahead, Dinneen described the state of the ethanol industry as "dynamic, sound, clean and secure."
 	
 "The state of the industry is growing at an unprecedented rate, shattering production records and moving into new markets with a commitment to providing consumers with high performance, high quality, and renewable motor fuels that can enhance U.S. energy security while improving air quality," Dinneen said. 
 	
 Cavaney described a new relationship between the oil and ethanol industries that will ensure "fuel flexibility" in meeting consumer needs and market certainty for ethanol producers. Reiterating Dinneen's comments, Cavaney said the oil/gas and ethanol industries share the same "values and aspirations," adding that, "ethanol brings a number of valuable benefits to gasoline." 
 	
 "Our industries have found a new path forward," Cavaney said. "The U.S. oil and gas industry is not anti-ethanol. We need to work together, not against each other."
 
 Hume, Urbanchuck, Schafer address homeland security
 Tim Hume, President of the Corn Board - National Corn Growers Association (NCGA) led the general session through a homeland security discussion with ethanol industry consultant John Urbanchuck and RFA legislative counsel Larry Schafer. 
 	

 Hume earnestly expressed his satisfaction with the oil industry's newfound support of ethanol, as well as his frustration with California Gov. Gray Davis' threats (and eventual decision) to delay the Jan. 2003 ban on MTBE. 
 	
 "It's difficult for me to understand why we have to keep proving ourselves in California," Hume said. "Gov. Davis should be working with us. We have earned the right to supply the California market. . . and we will not relent." 
 	
 As for the oil and gas industry, Hume said, "We have a new partner in the API - it's been a long time coming."
 	
 Urbanchuck gave a synopsis of a recent study entitled The Ability of the U.S. Ethanol Industry to Replace MTBE, while Schafer outlined 10 key RFS-related components in the pending Senate energy bill, including the accepted 5 billion gallon market for ethanol, a credit trading program, monitored compliance by the Environmental Protection Agency (EPA), small refinery exemption, an elimination of the oxygen requirement and a nationwide MTBE ban by 2006, including a special program to help MTBE producers ease out of the market. 
 
 Graboski, Piel, Kortum discuss oxygenates market 
 Under the direction of panel moderator Mary Giglio, RFA Congressional & Public Affairs Director, Colorado School of Mines Director Michael Graboski, transportation fuel consultant William Piel (President, Tier Associates, Inc.) and EPA Fuel Program Support Group Manager David Kortum together presented a timely overview of the public policy benefits and challenges of oxygenates. 
 	
 The discussion was of particular importance, several attendees said, because the current RFG legislation excludes an oxygenate mandate. Notably, Kortum said, "70 percent of the gasoline in California would require ethanol even without an oxygenate mandate." 
 
 Informative & lively breakout sessions 

 Concurrent breakout sessions - perhaps the most engaging discussions at the conference - began after lunch Thursday, Feb. 28, making one of the most arduous decisions of the day choosing which session to attend.
 	
 A diverse set of early afternoon breakout sessions included: A Primer for Prospective Producers - Part 1, What are We Going to Do With All this Distillers Grain, and Understanding Gasoline Components Markets and the Role for Ethanol. The breakout sessions continued later in the day with A Primer for Prospective Producers - Part II, How Far are We Along the Road to Cellulose Commercialization, and An Outlook for E-Diesel in the U.S. Diesel Fuel Market.
 	
 Norm Marek, Program Manager for Alternative Energy and Transportation Fuel Programs, Illinois Department of Commerce & Community Affairs, outlined some the latest testing that has been completed on e-diesel by public and private industry. Marek discussed, among other topics, the promising results of the ADM truck program, sponsored by the Illinois DCCA in cooperation with Mack Trucks, Growmark, Corn Belt FS, Williams Bio-Energy and Pure Energy Corporation. 
 	
 A 'balanced' breakfast 
 The final day of the conference began with an early morning breakfast presentation on the persistent topic of ethanol's energy balance. Along with moderator Ralph Groschen, Senior Marketing Specialist, Minnesota Department of Agriculture, USDA Agricultural Economists Hosein Shapouri and James Duffield presented overviews of the department's latest ethanol production energy balance findings. 			
 Shapouri and Duffield were, once again, compelled to refute the findings of Cornell University professor David Pimentel, who released his fourth revised report on the energy balance of ethanol last June. 				The researchers said Pimentel still erroneously claims ethanol has a net energy loss, does not contribute to the nation's energy security, and is not a secure and reliable form of energy. 
 	
 "These are fighting words," Dufflield quipped. "Clearly, ethanol has a net energy gain and replaces U.S. energy imports. And Pimentel says ethanol is not a secure form of energy (because flooding and drought can affect feedstocks) . . . As if oil from the Persian Gulf is a secure form of energy."
 	
 Furthermore, the researchers explained, nine studies have been completed on ethanol's energy balance in the last 11 years - and Pimentel is the only researcher to find ethanol's energy balance negative in the last decade.
 	
 "Pimentel is alone," Duffield said. "He ignores changes in technology and I'm surprised anyone takes him seriously."

 	
 According to Shapouri, the USDA plans to release its most recent findings in April, once again showing ethanol has a net energy gain, a gain that continues to widen with advances in modern farming and production technology. (Note: for accurate figures and more detailed information on this topic go to www.ethanolrfa.org/pubs).
 
 International Outlook 
 The RFA included in its agenda an International Outlook that gave attendees a taste of the developing ethanol industries in Canada, Europe and Australia. 
 	
 Mike Bryan, president of BBI International, moderated a panel that included Canadian ethanol consultant Don O'Connor, Abengoa executive Joaquin Alarcon de la Lastra, and Bill Wells, a U.S. ethanol industry veteran now living and working in Australia.
 
 Supplying California 
 "We're ready to go (in California). There's no reason to extend the MTBE deadline for 10 seconds," said Neil Koehler, President of Kinergy, LLC, as he opened a conversation on replacing MTBE with ethanol in California. 
 	
 Pat Fitzgibbon, BP Manager of MTBE Phase Out, said refinery modifications in California are well underway, modifications to terminal and blending stations are making good progress and the state's receiving infrastructure is midway through development. 
 	
 "Essentially, these modifications will be completed in the fall of 2002," he said. "Unfortunately, the business environment is still uncertain."
 	

 Jack King, California Farm Bureau Federation manager of national affairs and research, spoke of California's potential to grow ethanol feedstocks in-state and produce ethanol locally. Notably, King said, farmers are interested in using sugar cane as an ethanol feedstock and growing corn, if possible. "The time (for ethanol in California) is now," King said.
 	
 California Energy Commission representative Susan Brown presented an overview of the state's transportation energy needs, while the candid Brooke Coleman, Director of the Renewable Energy Action Project, fervently disputed the findings of the influential Stillwater Report. 
 	 
 Logistics & transportation
 The infamous Stillwater Report took yet another beating from ST Terminals Vice President of Marketing Tony Hoff, who reminded everyone that ST Terminals has been storing ethanol in California for 15 years. 
 	
 "Let's build more rail cars. Let's fill them up with ethanol, roll them out to California, and we'll fill them up for you - it's that simple," Hoff said. 
 
 Legislative roundtable
 A well-rounded panel of "political prognosticators" took the stage to field questions from the inquiring and (sometimes jesting) Dinneen. The panel session, always a crowd favorite, included Greg Scott, legal counsel to the Society of Independent Gasoline Marketers of America (SIGMA), Jon Dogget, director of government relations for the American Farm Bureau Federation, John McClelland, and Trevor Guthmiller, executive director of the American Coalition for Ethanol. 
 	
 When asked if the Senate energy bill would include an RFS, McClellend accurately predicted, "I don't see any way there could be a bill without an RFS. The momentum has already begun."
 	

 Scott conceded, "Yes an RFS will likely be part of the energy bill, but (SIGMA) does not support it and I personally don't think (an RFS is needed)."
 	
 As for legislative priorities, the panelists named the pending energy bill, passing an RFS, getting the farm bill through Congress, trade promotion authority and refunding the Credit Commodity Corporation's Bioenergy program.
 
 Closing Remarks
 In his closing remarks, Dinneen thanked all who contributed to the success of the National Ethanol Conference, including the event sponsors: Fagen, Inc., Bio-Renewable Group, Ethanol Producer Magazine, Broin Companies, Victory Energy, and AMETHEX - American Ethanol Exchange. Before closing, Dinneen repeated his praise for API President Red Cavaney and thanked BBI International and the RFA staff for their hard work and dedication in planning and facilitating the conference.

Dinneen, Cavaney display historic concord that leads to bilateral support for Renewable Fuels Standard

RFA's National Ethanol Conference Draws Over 600 to San Diego

I must begin by saying the National Ethanol Conference: Policy & Marketing was one terrific event. The agenda was packed with information and the presentation by Red Cavaney of the American Petroleum Institute was a real showstopper. I have to believe that when Mr. Cavaney looked out at over 600 people, all committed to the development of a domestic ethanol industry, it had to make an impression on him. Thanks to the Renewable Fuels Association for a job very well done.

 	
 Just prior to the conference, the United States Department of Agriculture hosted their annual Ag-Outlook conference in Washington. Over 1,400 people attended this dynamic look at the future of agriculture. If you went away from that conference not gaining some insight into American agriculture, you were sleeping. While there were many people from USDA involved, I would like to thank Marvin Duncan from the Office of Energy Policy and New Uses for inviting us to participate.
 	
 Following the National Ethanol Conference we went back to Washington, D.C. for the National Cooperative Business Association's (NCBA) 3rd annual New Generation Cooperative Leaders Conference. It was unquestionably one of the most informative meetings I have ever attended on the development of "New Generation" cooperatives. The topics were timely and raised numerous issues of importance that groups planning on developing farmer-owned cooperatives need to be aware of. For more information, I might suggest that you go to the NCBA website at www.cooperative.org. 
 	
 Turning our attention forward to the Fuel Ethanol Workshop and Trade Show, it will likely be the largest gathering in the history of the ethanol industry. We anticipate as many as 1,000 attendees and have sold out the Trade Show with 103 exhibitors. The ethanol industry is becoming so dynamic that it is a task in itself to keep up with the changing environment. We hope Ethanol Producer Magazine makes that task a little easier for you.	
 	
 We look forward to seeing you at the FEW in June and hope you have a great month.
 
 
 Mike Bryan
 President, BBI International
 mike@bbiethanol.com

World-class ethanol industry events showcase the progress we have made

The Way I See It

"What is the purpose of the event?" was the first question addressed by the three general managers who make up the steering committee for the 2002 International Fuel Ethanol Workshop (FEW). Randy Doyal of Al-Corn Clean Fuels said "It is important because it is technology-focused and hosts a comprehensive trade show." Roger Burken, Chief Ethanol, added that the FEW provides a unique opportunity to discuss methods to improve both production and the bottom line profits with your peers. Nate Kimpel of New Energy Corporation said, "The FEW is a great place to network and make good connections - something that always benefits producers."
 	
 With these thoughts in mind as well as years of experience, the foundation for a meaningful and highly interesting agenda began to take shape. This year's steering committee meeting followed the National Ethanol Conference in San Diego. There are numerous challenges associated with the task of developing the agenda topics for the FEW. First, it is a very diverse audience, ranging from people recently introduced to ethanol to highly experienced producers and very technical researchers. Also in recent years, there have been increasing numbers of international participants and this year's program hopes to serve their needs as well. 
 	

 To assist people new to the ethanol industry, the special session, "Ethanol 101" will be held on Tuesday prior to the FEW (limited to 100 people). At the FEW along with pertinent general sessions, there will be 3-4 concurrent breakout sessions this year. Each will follow a specific track, for instance; Shop Talk (back by popular demand), Management Issues, Near-Term Technological Progress, and possibly one more to cover a variety of pertinent issues. 
 	 
 Friday will again hold the very interactive Round Robin discussions followed by the Forum of Futuristic Thinkers. The primary issues identified last year during the Friday program were incorporated by the 2002 FEW steering committee as part of the overall agenda this year. It was decided that the FEW will continue over same number of days (Tuesday through Friday) so that there is adequate time for the discussions and also for one-on-one meetings and networking. It is often the only opportunity that representatives from ethanol facilities have to gather and discuss production issues.
 	
 Check the website, www.bbiethanol.com/few/, for the final agenda that is currently under development. Many thanks to Roger, Nate and Randy for their valuable input and knowledge!

BBI International expects a record number of participants, over 100 exhibitorsat ethanol industry's premier summer conference

Ethanol Plant managers help plan 2002 International Fuel Ethanol Workshop & Trade Show

Bridging longtime differences between ethanol and oil interests, a bipartisan group of senators agreed March 8 to enact a renewable fuels standard as part of the pending Senate energy bill. This "historic agreement" will nearly triple U.S. ethanol production while toxic MTBE is phased out nationwide.
 	
 "This compromise signals a new era of cooperation, growth and stability for the ethanol industry," said Bob Dinneen, president of the Renewable Fuels Association. ". . .Consider what has been accomplished here. You have the nation's oil companies supporting a five billion gallon market." 
 	
 RFS inclusion in the energy bill was made possible, in no small part, by an unlikely alliance between the RFA and the American Petroleum Institute. API President Red Cavaney spoke before 620 ethanol proponents at the National Ethanol Conference: Policy & Marketing in San Diego last month, perhaps squelching any doubts he may have had about the ethanol industry's ability to supply the market.
 	
 "We have embarked on a new era together - an era of compromise," Cavaney hinted at the National Ethanol Conference. "I am optimistic we will succeed."
 	
 After the RFS compromise was made, Cavaney lauded, "We think this is a win for the consumers and a win for the farmers. . . It's a win for the environment and it's also a win for national security."
 	
 Dinneen said the RFS compromise was made possible by Secretary of Energy Spencer Abraham, Senate Majority Leader Tom Daschle (D - S.D.), a bipartisan group of senators, representatives of the RFA, API, American Farm Bureau Federation, National Corn Growers Association and Northeast States for Coordinated Air Use Management. 

 	
 Together, Dinneen said, the RFS alliance created a "new paradigm, based on mutual respect and shared interest."
 
 What's in the current RFS legislation?
 The RFS compromise basically assures that a package of new gasoline requirements will be included in the energy legislation pending in the Senate (at the time this magazine went to print). The key requirements are intended to provide refiners greater flexibility while also helping farmers grow and sell more crops. Importantly, the legislation disallows "backsliding" on air quality standards. 
 	
 The agreed upon RFS would require at least 5 billion gallons of ethanol (or other biofuels) nationwide by 2012. The first stage of the RFS would take effect in 2003. MTBE would eventually be banned in every state, and the federal oxygenate requirement would be eliminated. The oil industry would still have to meet clean air rules but would have more flexibility in doing so.
 	
 Furthermore, a certain percentage of each refiner's gasoline volume would include ethanol or other safe biofuel additives. If for some reason ethanol was not desired or available, a refiner could purchase ethanol credits from another refiner that had already exceeded its allotted requirement. 	
 	
 Industry analysts say the RFS will reduce oil imports by 500 million gallons over the next decade and create thousands of new jobs for Americans. According to one independent study, the legislation would also reduce the U.S. trade deficit by $34.1 billion, boost demand for grain (mostly corn and soybeans) by more than 1.5 billion bushels by 2012, increase new investment in rural communities and expand household income by an additional $51.7 billion over the next decade.

Historic compromise establishes five billion gallon market for ethanol, other renewable fuels

Ethanol and oil leaders come together on RFS

Oil and ethanol industry leaders both expressed frustration and dismay March 15, when California Gov. Gray Davis delayed the deadline for removing MTBE from California's gasoline supply until January 1, 2004, a year later than planned. 
 	
 Governor Davis' about-face on the MTBE phase-out schedule is completely unjustified and places political expediency ahead of safe drinking water," said RFA leader Bob Dinneen. "Today's decision represents a callous breach of faith with California consumers that want MTBE out of their drinking water now, gasoline refiners and marketers that have invested to meet the original deadline and farmers across the country that have added more than a billion gallons of ethanol capacity to enable the timely transition away from MTBE."
 	
 The California Renewable Fuels Partnership expressed "extreme disappointment" in the governor's decision, saying Davis "short-circuited" the official agency process to delay the MTBE ban. 
 	

 "Public opinion across the state is clear in wanting an immediate MTBE ban," said CRFP Director Neil Koehler. "The Governor ignored the advice of the Association of California Water Agencies, other state agencies, the oil industry and numerous environmental groups. But most disappointing, Governor Davis used political speak to hide behind his decision." 
 
 The governor's reasoning"We do not need to import 900 million gallons of ethanol to put in every gallon of gasoline in this state in order to be in compliance with the Clean Air Act," Davis said at a press conference in Los Angeles where he announced his controversial decision. "All we need is 250 or 275 million gallons of ethanol, which we already do and are prepared to do in the future." 
 	
 Despite numerous reassurances from ethnaol producers, refiners, terminal providers and transportation providers, Davis said he did not believe enough ethanol and other fuel blending components could be delivered to meet California's market needs by 2003.

RFA Calls the governor's decision a ‘mistake'  CRFP says Davis ignored advice of environmental groups state agencies, oil industry

Davis delays MTBE ban until Jan. 1, 2004

Chevron urged Davis to hold deadline
 To no avail, ChevronTexaco urged California Gov. Gray Davis to phase out MTBE from California gasoline effective Dec. 31, 2002, as originally planned. ChevronTexaco was one of several companies that called the governor's decision to delay the ban one year a mistake, saying it will now be more difficult to effectively ban the toxic fuel additive. Shell, BP, and ST Services were among the companies that voiced serious concern over the governor's decision.
 
 N.J. group may build ethanol plant
 A New Jersey group may start building a large-scale ethanol plant by the end of the year. The 40 mmgy plant, to be run by Garden State Ethanol, LLC, would be located somewhere within Salem County. The plant would use both corn and grain sorghum as feedstocks. 
 	
 Memphis, Tenn.-based Lurgi PSI has already been retained by the group to design and build the plant. Meetings throughout New Jersey, Maryland, Delaware and eastern Pennsylvania are scheduled for spring and early summer to continue discussing the project with investors. 
 
 York County, Pa. has potential 

 At least two sites in York County, Pennsylvania have the potential to sustain a 40 mmgy ethanol plant, according to the findings of a recent feasibility study. 
 
 Colorado-based BBI International conducted the study for the York County Economic Development Corp.; the findings were presented to the board early this month. If the plant is built, it will sit on 40 to 50 acres of land and could be completed within the next two years. The plant would require about 14 million bushels of corn annually. BBI International is currently examining the marketing capabilities needed to sell the plant's products. 
 
 Quad County begins production
 Quad County Corn Processors began full-scale production early this month at an 18 mmgy facility in Galva, Iowa. There are now 61 U.S. ethanol plants online with a capacity to produce over 2.3 billion gallons per year. 
 
 "We're very excited to reach this phase," said Mike Jerke, general manager of Quad County. "We can now realize the dream of our farmer-investors. "Ethanol production is the prime example of a value-added enterprise whose benefits are felt locally by our members, but also by the country at large by reducing U.S. dependence on foreign oil."
 	
 The plant was designed and built by Galyor Engineering and North Central Construction. Williams will market the facility's ethanol.

Ethanol Headlines

Highly regarded by ethanol plant design/build firms in the Upper Midwest as a dependable and experienced heavy industrial contractor, Fargo, N.D.-based Wanzek along with Omaha-based C.J. Schneider Engineering (CJS) and international construction giant SUITT (a BE&K company) have joined forces as Bio-Renewable Group: Energy Engineers & Constructors, a powerful new design/build alliance that utilizes the process technology of Vogelbusch USA, Inc.
 	

 The formation of the alliance was publicly announced last month prior to the National Ethanol Conference: Policy & Marketing in San Diego, Calif., where the group sponsored a luncheon for the Renewable Fuels Association (RFA), making an impressive industry debut before a crowd of over 600. A week after the conference, company officials told Ethanol Producer Magazine the team has secured letters of intent from at least four future producers, each planning to build 30-40 mmgy plants in the U.S. The group also indicated that it had received verbal commitments from a number of groups in the early stages of development. 
 
 How the alliance formed
 Bio-Renewable Group is, according to the companies involved, a full-service single-source provider of construction and design-build services for the ethanol industry and, because of the proven experience of the team, the group must be recognized among the top global providers of ethanol plant technology, design and construction. 
 	
 "The idea to form an alliance was a joint realization between each of the companies involved in Bio-Renewable Group," said Wanzek Executive Vice President Jon Wanzek. "Needless to say, there is a rising demand for ethanol production and use - both at home in the United States and in Canada, Mexico and abroad. This new team allows us greater flexibility to share resources and take on projects of any size - from the smallest projects to the 100 million gallon a year plants. Our clients will have access to all the resources they need, in one consortium." 
 	
 The seed that would eventually become Bio-Renewable Group was planted, Wanzek said, when he and C.J. Schneider Engineering began discussing the idea of an alliance last year. Shortly thereafter, SUITT/BE&K became engaged in the discussions and joined the team. Because of SUITT's ability to procure and manage large national process and industrial contracts, the company is a valuable asset to the group, Wanzek said. Longtime ethanol technology leader Vogelbusch augmented the team as a technology supplier, making Bio-Renewable Group a "unified, seamless, single source firm." 
 	
 "I think it's the best of both worlds," Wanzek told Ethanol Producer Magazine. "Wanzek has a great deal of experience (with ethanol plant construction), but I can't tell you how much it brings to the table to have the most experienced ethanol provider in the world on your team; I have great confidence in this group. We believe our experience, and especially our abilities, are unsurpassed."
 
 Plant building experience 

 For more than a decade, Wanzek has been providing millwright, equipment installation, process piping, structural steel, crane services and mechanical and civil construction services to ethanol projects in North America. The 31-year-old company has worked with respected ethanol companies such as Broin & Associates, Archer Daniels Midland Co. (ADM), Cargill, MCP and many others. Wanzek is currently working on the expansion at Al-Corn Clean Fuels, in Claremont, Minn., where it was originally the general contractor. The company was the millwright and structural steel subcontractor on the Northern Lights plant in Milbank, S.D. and Dakota Ethanol in Wentworth, S.D., for Broin & Associates. 
 	
 "The majority of our growth in the last 15 years has been in the upper Midwest," said Will Stark, Wanzek Business Development Manager. "Of course, now we are unlimited geographically (with the formation of Bio-Renewable Group).
 	
 Stark said Bio-Renewable Group is willing to invest resources in "green energy" - not only ethanol but renewable diesel as well.
 	
 Wanzek employs more than 400 employees at peak season, in addition to a permanent office staff of 26. 			
 
 As Wanzek has done in the past, Bio-Renewable Group will make every effort to subcontract in local communities and involve area residents in ethanol projects whenever possible, Stark said, adding, "Community involvement is a major key to the success of bio-renewable projects." 
 
 Plant design and operation
 C. J. Schneider Engineering, which is both a process and detailed-design firm, has been designing grain processing and chemical plant facilities for over 24 years. Its entire staff has come out of the processing industry with broad experience ranging from engineering manager positions to plant managers and vice president positions. CJS staff includes those whom have designed, built and operated ethanol plants as well as biomass, starch, oil seeds, and wet and dry corn milling plants. 
 	
 "I'm very excited about the team we have created," said CJS President Chuck Schneider. "We've assembled a solid team that has the ability to manage projects of any size, has virtually unlimited resources manpower and a proven technology in Vogelbusch. . . for our clients, these qualities simply equal less risk."

 Schneider said CJS brings process design, detailed engineering, project management, and "fast-track" design/build experience to the team. All engineering disciplines and resources are in house, he said.
 
 The process design
 The Bio-Renewable Group utilizes process design provided by Vogelbusch USA, Inc., a leading supplier of technology to the North American ethanol industry.
 	
 "Vogelbusch USA is one of the most successful suppliers of technology to the fuel alcohol industry in North America. Of all operating fuel alcohol plants in the United States and Canada, more are employing Vogelbusch know-how than any other," said Dan Mahon, a Vogelbusch engineer and spokesperson. "Fourteen Vogelbusch designed facilities in the U.S. currently produce over 600 mmgy of fuel ethanol and high quality industrial alcohol."
 	
 Mahon said continuous development work by Vogelbusch USA's parent company in Austria (Vogelbusch GmbH), coupled with constant feedback from plant operations, ensures that all technology is "state-of-the-art." The latest advances are made available to existing clients, as well as prospective ones. Currently, Vogelbusch USA is confirming final designs for a new generation of fuel alcohol plants. By combining new DDGS drying technology with integrated evaporation and advanced distillation configurations, alcohol plants will now be able to reduce thermal energy input to below 30,000 BTU/gallon of alcohol produced, Mahon said. 
 	
 "At the same time, these plants will have the lowest emission rates and exceed environmental standards. As always, these designs will offer ease of operation and achieve unparalleled on-stream factors, thus offering greatest returns on investment."
 	
 In addition to technology and know-how for power alcohol production, Vogelbusch USA also offers a complete line of fermentation and biotechnology processes, including expertise in the production of potable alcohol, industrial alcohol, citric acid, acetic acid, and other specialty chemicals. Vogelbusch also supplies energy-efficient molecular sieve dehydration units, among the most advanced on the market. 
 	
 "Because it brings together world-class technology and engineering with construction experience and capabilities that are second to none, the Bio-Renewable Group offers the highest quality plant design and construction available today," Mahon said. "Vogelbusch USA is excited to be involved with this new partnership.

Wanzek, CJS, SUITT combine resources, utilize Vogelbusch process technology, to form single-source ethanol plant design/build firm

Bio-Renewable Group offers proven technology, impressive engineering & construction capabilities

Missouri Governor Bob Holden, chair of the 26-state Governors' Ethanol Coalition (GEC), presented the Keynote Policy Address at the Renewable Fuels Association's 7th Annual National Ethanol Conference: Policy and Marketing. Holden served eight years as State Treasurer prior to being elected governor in 2000. He became chair of the GEC on January 1, 2002.
 	
 Governor Holden addressed the conference during the noon luncheon on Thursday, February 28, at the Loews Coronado Bay Resort in San Diego, California. In his address, the governor called upon states to support renewable fuel production as a way to safeguard against international instability, promote rural economics and protect the environment. 
 	
 "With the events surrounding Sept. 11 weighing heavily on our minds, the time is ripe for a shift toward renewable fuels," Holden said. "By recognizing the nearly unlimited potential that renewable fuels offer, we can change energy production in this country."
 	
 As chair of the GEC, Holden said one of his main goals is to increase ethanol use and decrease the amount of oil used nationally for transportation purposes. Holden, who also supports adopting a national renewable fuels standard, left funding for ethanol incentives in this year's state budget nearly intact because of the positive return on investment. He encouraged his counterparts in the coalition to promote similar incentives for value-added agricultural products and cooperative marketing arrangements, such as Missouri's ethanol cooperatives. 
 	
 Missouri is home to two farmer-owned ethanol plants - one near Macon and the other in Craig, near St. Joseph. Studies show that the two plants have created more than 1,800 new jobs, increased economic activity by $173 million and generated nearly $18 million in additional tax revenues. In addition, Missouri has the capacity to open three more plants, which would generate another 9,000 new jobs and nearly $90 million in tax revenues.
 	
 "Missouri has invested in an ethanol incentive fund to assist these new plants," Holden said. "I am proud to say the state has achieved more than a 900 percent return on its investment."

Bob Holden chairs 26-state Governors' Ethanol Coalition

Missouri governor gives Policy Keynote Address at National Ethanol Conference

Shares of Archer Daniels Midland Co. fell more than 8% in mid-March after California Gov. Gray Davis announced his decision to delay the ban on MTBE. Davis postponed the MTBE ban by one year, from Dec. 31, 2002, to Jan. 1, 2004.

ADM shares fall 8% after Davis makes decision to delay ban

The United States will use a record 690 million bushels of corn in 2001/2002 to produce ethanol, an 11 percent jump from last year, the U.S. Agriculture Department said Mar. 12

 
 Feed Outlook Report"Ethanol production continues to increase based on the outlook from the possible banning of MTBE in many states," the USDA said in its Feed Outlook report on corn, sorghum and other crops. Last year, U.S. ethanol makers used an estimated 620 million bushels of corn from the nation's 9.9 billion bushel crop. The industry is expected to produce as much as 2.7 billion gallons of ethanol this year, as compared to 1.8 billion gallons in 2001.

U.S. ethanol producersused an estimated 620 million bushels of corn from the nation's 9.9 billion bushel crop. in 2000/2001

U.S. to use 690 million bushels of corn for ethanol in 2001/2002

Mike Bryan has more than eighteen years experience in the ethanol industry, plus fifteen years in advertising and marketing. He formed BBI International (formerly Bryan & Bryan, Inc.) in 1995 as an ethanol consulting, publication and conference firm. The company has completed no less than 60 bioenergy and ag processing feasibility studies and business plans for public and private clients. As President of BBI International, Bryan has a hand in all aspects of the company, including consulting services, conference planning, publications and international affairs. BBI International is headquartered in Cotopaxi, Colorado with hub offices in Evergreen, Colorado and Grand Forks, North Dakota. 
 
 In a steel-sided workshop next to the Arkansas River in Cotopaxi, Colorado, sits an out of use 1957 Chris Craft cabin cruiser. Once royalty among boats, this old vessel is well past its prime but destined to return to its home in the water. Not on the Arkansas, of course, but on the mighty Mississippi. 
 	
 Had to Have It, as BBI International President Mike Bryan and his wife Kathy have so aptly named the old cruiser, will make a six-week voyage down the Mississippi, from Minneapolis to New Orleans this fall (knock on wood Mike. . . but not too hard). Mike and Kathy discovered the boat two years ago in Minnesota, north of St. Cloud. The 27-foot cabin cruiser was in rough shape but Mike saw some life in her and had the boat towed home to Colorado where, with the help of some very skilled friends, the cruiser will soon be totally refurbished to its original glory. Who says there are no second acts in American life.
 
 St. Louis to Colorado 
 Like that old Chris Craft, Mike may have been edging past his prime when, at age 50, he and Kathy, a full partner in the business, left St. Louis, Missouri for a refurbishment of their own in Colorado. 
 	
 When the couple relocated to the mountains in 1996, neither realized just how much their young ethanol consulting firm, Bryan & Bryan, Inc., would evolve and grow. Both had a great deal of experience in the ethanol industry, and the duo was quickly becoming the busiest two-person show in the business. In Colorado, Mike and Kathy expected to keep the firm small, streamlined . . . uncomplicated. 

 	
 Easier said than done. 
 	
 "We had no fears moving out to Colorado," Mike said. "The ethanol consulting business was picking up and Bryan & Bryan, Inc. was literally Kathy and myself. Believe me, we never expected this company to grow like it has. The industry just took off around us - and with us. Looking back, should we have chosen this location for our business? No, probably not, but we certainly love it here. Colorado is our home."
 	
 The view from Mike's office window isn't bad either. BBI International sits 8,200 feet high in the Sangre de Cristo mountain range of south-central Colorado. On a clear morning, you can see all the way to New Mexico - literally - some 80 odd miles down the Wet Mountian Valley. For a Minnesota kid who spent 27 years on the plains of North Dakota's Red River Valley, a mountain view like this never gets old.
 
 Long journey to ethanol 
 Mike was raised in Watertown, Minnesota, a small town west of Minneapolis-St.Paul. The youngest of five children, Mike was an affable young man who "was not particularily athletic but did letter in track & field as a pole-vaulter. (You can imagine all the "raising the bar" analogies a former pole-vaulter can come up with as the president of a company).
 	
 Mike joined the U.S. Air Force in 1963. He was stationed in North Dakota (near Grand Forks), where he eventually married, raised children and remained for almost three decades. A young entrapenuer willing to try his hand at anything, Mike gained invaluable experience in various agricultural and marketing positions - including radio broadcasting - until finding a strong interest, and a natural talent, in advertising. For a number of years, Mike owned and operated a successful advertising/marketing agency in Grand Forks. In 1983, Mike sold the agency and took a position as Assistant General Manager of Alchem, Ltd, a new ethanol plant in Grafton, North Dakota. It was Mike's first move into ethanol and the beginning of what's become his life's work.
 
 From Alchem to NCGA

 "Alchem is where I cut my teeth, so to speak, in ethanol," Mike said. "It was a small facility, and I was able to be involved in almost every aspect of plant operations." 
 	
 Over the next six years, Mike said, he had a role in overseeing Alchem's ethanol production and marketing, plant operations, purchasing, DDGS marketing and state legislation. It was a strong foundation from which he built his entire career.
 	
 In 1989, Mike reluctantly departed from Alchem for an "opportunity he could not pass up" at the National Corn Growers Association in St. Louis. With the NCGA, Mike was the ethanol specialist responsible for international, federal and state projects. He was also a project manager for ethanol and corn sweeteners. During this time, Mike participated in international trade missions to Japan, Korea, France and Taiwan. He spent many days and weeks in Washington D.C. and worked on ethanol issues relating to the Clean Air Act Amendments of 1990, and the subsequent Regulatory Negotiations. 
 	
 "That was an exciting time in my career when the ethanol industry was quite young and we simply did not have as many friends as we do now." He recalls. "Of course, things are much different now - we have friends in the oil industry today - but back then it was just ethanol producers and corn growers on our side."
 	
 With the NCGA, Mike said, he was fortunate to spend a lot of time working in the NCGA Washington D.C. office, helping to coordinate the efforts between D.C. and St. Louis and acting as a liaison between the corn-growing states and the ethanol industry. 
 	
 "Before joining the NCGA, I had been to Washington D.C. maybe twice in my life. It was sort of like Mr. Tibbs goes to Washington. There was a fast learning curve and I don't mind saying that I knew a lot about ethanol but very little about Washington when I started out. That was my introduction to public policy and it helped shape my career in ethanol. It was a terrific learning experience for me. Working for the NCGA gave me the opportunity to see the world and meet some very interesting people. . . I feel as though it rounded out my professional abilities."
 
 BBI International 
 In 1995, a wind of change once again took hold of Mike, this time including his wife Kathy, who at the time was working as an ethanol consultant for an enzyme company. The couple set out on their own, first in St. Louis and eventually making the move to Colorado, where the company is still headquartered. Mike and Kathy took on a number projects simultaneously, including the now world-famous International Fuel Ethanol Workshop & Trade show (now in its 18th year), as well as The Energy Independent newsletter (now Ethanol Producer Magazine). 
 	

 The company's first ethanol study was done for the Michigan Corn Growers Association in 1995. Now under the team leadership of former National Renewable Energy Laboratory process engineer Mark Yancey, the BBI Consulting Services Division has completed no less than 60 ethanol feasibility studies and business plans in at least 20 states; a number those projects have come to fruition and are now active ethanol production facilities.
 	
 Today, BBI International has a dozen employees working in three offices in the U.S., including Ethanol Producer Magazine's publishing headquarters in Grand Forks. BBI has a growing international presence - especially in the China, India and the Far East. The company's conference services division held the World Fuel Ethanol Congress in Beijing, China last year and is currently helping to plan an international ethanol conference in India. The 2002 Fuel Ethanol Workshop & Trade Show, to be held in Springfield, Illinois, June 25-28, is expected to draw nearly 1,000 participants from around the globe, as well as over 100 exhibitors. 
 	
 As for the future of his company, "I think BBI will always stay true to its mission of serving the renewable energy industry, but that role has evolved and will continue to evolve," Mike said. "I see us staying involved with renewable diesel, cellulosic ethanol and even wind power generation. Of course, we will remain highly dedicated to the grain ethanol industry."
 	
 Mike said BBI International today holds years of practical experience from both the production and marketing sides of ethanol, along with an unsurpassed degree of objectivity and independence that allows the company to maintain a perspective on the industry that is both "unique and valuable."
 	
 As for himself, Mike says, "I would like to think the ethanol industry sees Mike Bryan as a guy who has made a contribution - a professional who is dedicated to the industry, dedicated to the growth of renewable fuels, honest and straight-forward. . . that's all I can hope for. 
 	
 "I have always taken great pride in being an ethanol proponent. I've always felt like I was on the right side of the issue, from an energy perspective, an environmental perspective and a rural economic development perspective - I truly believe we are doing something good for society."
 
 The future of the industry
 "I think we are headed into a period of adjustment as we adapt to the likely elimination of the oxygenate standard and prepare for the awesome implications of the renewable fuels standard. There may be some lag-time between when the RFS kicks-in and when the market catches up. We may see a period of slight overproduction in the next two years before we really experience the windfall.
 	

 "Of course, the current situation in California will have a short-term negative affect on the industry. Gov. Gray Davis should have followed through on the MTBE ban this year. . .It would have been a relatively smooth transition and the demand would have eaten up a significant portion of the new ethanol production coming online. So we must always be adjusting and adapting - we have to find new markets. The Northeast markets are as big as California, but harder to obtain (because there are several state's to deal with, not just one large market). We need to continually expand our marketplace objectives.
 	
 "In the next ten years I see cellulosic ethanol taking off. I am convinced that we will be producing ethanol from cellulose in this country - I don't know when, but it will happen on a large scale. When this happens, we'll all be talking about 40 to 50 billion gallon markets instead of 5 to 10 billion gallon markets."
 	
 For now, Mike will concentrate on keeping BBI International on the forefront of the ever changing marketplacece of renewable fuels. Afterall, Mike's not ready to give up the helm of the company for the helm of an old boat. . .not quite yet anyway.

BBI International President honed skills at North Dakota ethanol plant, as NCGA representative in St. Louis, Washington D.C.

Mike Bryan credits  career success to integrity, quality service

EPM: Some believe California will never truly be accepting of the ethanol industry until it has a significant stake in ethanol production. What do you think of this premise? Will California ever produce a good portion of the ethanol it will consume? Does it really matter?
 
 King: It would certainly help if California had its own buy-in the ethanol process. A growing number of state officials and opinion leaders are recognizing the role that renewable fuels can play as sources of domestic energy, jobs and tax revenue. Support is definitely growing but we're not there yet. California's concerns regarding ethanol have been driven primarily by fears of shortages and logistical supply problems. There has been little focus on the opportunities that ethanol use and production can present. California's refining capacity is extremely tight. This, combined with the state's boutique fuel standards, leaves the state vulnerable to price spikes, whenever a refinery goes down. A readily available supply of ethanol from both in-state and out of state sources would go a long way toward bolstering supply reliability. 
 
 EPM: Who's making ethanol in California right now, and where? 
 
 King: Two California processing plants are operating on a small scale. A cheese processing plant is converting whey to ethanol and a beverage company is converting waste sugars into ethanol. Both operations are in Southern California.

 
 EPM: What's on the ethanol production forefront in California? What are the likely feedstocks (rice, sugarcane, corn, etc.)? Where is ethanol most likely to be produced in the state, if at all?
 
 King: A number of proposals are being discussed throughout the state--a rice straw to ethanol facility in the northern part of the state, corn to ethanol in the Central Valley, sugar cane to ethanol in the Southern Imperial Valley and ethanol from timber waste in the mountain region as a way to remove undergrowth and fire hazards in the Sierra Mountains. Each proposal has its own sense of purpose and set of economics. The biggest hurdle still is getting the right signal from the State of California so that producers and investors are willing to proceed beyond the discussion stage. We're also following the progress of state legislation that is designed to provide incentives to producers for both grain and bio-mass-based ethanol production
 
 EPM: Is there much corn grown in the state now?
 
 King: California's production of corn for grain varies between 170,000 to 240,000 acres annually. Nearly double that acreage is devoted to silage production to support the state's dairy industry.
 

 EPM: At the National Ethanol Conference in San Diego you said the ethanol industry should not look at California from strictly a sales point of view. Rather, you said, we should tout ethanol as a solution to the state's environmental problems. "That is a very clear, salable message," you said. Please expound on this line of thought for our readers. 
 
 King: For the most part, California officials have viewed the ethanol industry as an out of state interest trying to gain an economic advantage. This has been buttressed by a very well organized oil industry with a daily, in-state presence in California. Though the views are beginning to change, state officials have not given enough consideration to the potential benefits of a renewable, domestic energy source, the potential environmental benefits, jobs and local tax revenue that could be generated from a viable ethanol industry. 
 	
 California has significant air quality problems and octane needs that could be served by ethanol. But, there has been a bias against ethanol that needs to be overcome with an honest discussion on the merits and untapped benefits from ethanol use. The ethanol industry should position itself as an environmental problem solver. Certainly, the water quality problems caused by MTBE make that a very plausible argument. If you're going to persuade the public that they need your product, then you must convince them why its good for them and why they need it 
 
 EPM: What is your personal opinion on Gov. Gray Davis considering a postponement of the MTBE ban deadline until 2005? Is there a need to wait? Will California be ready for ethanol by 2003? Note: this question was answered prior to March 15, when Gov. Gray Davis extended the MTBE ban an additional year.
 
 King: I believe the Governor is keeping his options open. Some of the refiners are ready to proceed with the conversion. But, everyone needs some kind of clear signal. If we don't establish a deadline for the MTBE ban and stick with it, then it becomes a self-fulfilling prophecy that the industry is not prepared for the changeover. 
 	

 Because of the tight refinery capacity situation, some of the refineries, who are preparing for the transition, still have supply/logistic concerns.
 
 EPM: Where do you see California's ethanol industry in 5 or 10 years from now? 
 
 King: I'd like to be optimistic and say 3-5 new ethanol facilities in five or more years producing up to 150 million gallons annually. We are seeing a great deal more interest on the part of the farm community, which is encouraging. Much will depend on where the oxygenate issue ends up in the state, the technology side of the biomass, crop options and the availability of in-state incentives and financing. So you have a lot of variables. Once we break the logjam and establish the first plant, others will follow.

Jack King is the Division Manager of National Affairs & Research at the California Farm Bureau Federation. He is a 25-year veteran of Farm Bureau services. King served on the information staff of the American Farm Bureau Federation from 1985 to 1994 as director of news services in Park Ridge, Illinois.

Jack King believes ethanol should be an environmental problem solver

The Renewable Fuels Association (RFA) recently joined John Deere, the National Corn Growers Association, the Illinois Department of Commerce and Community Affairs, and corn farmers from six states to announce the launch of a 2-year test program on the use of E-diesel. In order to be marketed commercially, E-diesel must be approved by the EPA and must be covered under engine warranties. The two year test project, including both laboratory and field tests, will evaluate fuel performance, materials compatibility, emissions, health effects, safety, engine durability, and storage and handling requirements.

RFA Joins John Deere in E-Diesel Test Program

Richard Hanson, formerly manager of Gopher State Ethanol in St. Paul, is now overseeing the construction for ICM of the Badger State Ethanol plant in Monroe, Wisconsin and the Midwest Grain Processors plant in Lakota, Iowa. Hanson had also been overseeing the construction of Glacial Lakes Energy, LLC,  in Watertown, South Dakota. Once Badger State Ethanol is ready for commissioning, Hanson will depart from ICM and take over as plant manager at the Monroe facility.

Richard Hanson has joined ICM, Badger State Ethanol

Developers of an ethanol and cattle feeding operation planned for an area north of Pierre, S.D. say they've topped their equity drive goal of $24 million. Dakota Value Capture Cooperative had set a deadline for March 15 to raise the money toward their $64 million project. Tom Tveit, the co-op's secretary, said the group now has more than 900 investors and plans to break ground next month.

Co-op surpasses $24 million equity goal

A $23 million expansion planned for the Nebraska Energy ethanol plant has been delayed for six months to a year. Construction was supposed to start March 1 and be completed by the end of the year. The expansion would have increased the plant's ethanol capacity from 35 mmgy to 55 mmgy. The expansion also would have increased the number of employees from 42 to 48, plant officials said. The delay will postpone a $1.5 million addition to Aurora's wastewater treatment plant as well. The majority owner of the plant, Williams Bio-Energy, sought to cut back on capital projects this year, which led to the postponement.

Expansion  reportedly delayed at Aurora, Neb. ethanol plant

North Dakota is one state hoping to benefit from the agreement among U.S. senators to triple the amount of ethanol produced in the U.S. Gov. John Hoeven, who earlier this year ordered the state Department of Transportation to buy ethanol-blended fuel for the state's fleet of cars and trucks, praised the agreement. "That's very, very positive," Hoeven said, "not only for our farmers in terms of using more corn and other products that go into ethanol. . . but I think it's also positive for our country in terms of helping with domestic fuel supply, and it's good for the environment." North Dakota has ethanol factories in northeastern North Dakota in Walhalla and Grafton. Together, they are capable of producing a total of about 34 million gallons per year. Duane Dows, leader of a group that is hoping to build a third ethanol plant in the state,  said his group believes it is a good time to be putting plans together for a new plant. Dows said the group recently selected an engineering group for the project and has narrowed the possible sites down to four.

N.D. officials cheer ethanol agreement

North Carolina's Gasoline and Oil Inspection Board approved a measure repealing the requirement of labeling gasoline pumps that contain ethanol, the state Department of Agriculture announced this month. The measure, which would affect 10% ethanol blends, is to enhance the use of ethanol in the state. The state is not a federal RFG area, but ethanol-blended gasoline is used in 4 out of 5 stations. The measure, though, would allow stations to voluntarily continue advertising ethanol on its pumps, through the labels. The measure will go for a review by the Rules Review Commission and then on to the state General Assembly for final approval.

N.C. may remove ethanol labels from pumps

Informational meetings began last month for potential investors in a proposed ethanol plant in Illinois. Big River Resources, a cooperative of area grain producers who hope to build a plant near West Burlington or Gladstone, Ill., held two meetings in late February. Colorado-based ethanol consultants BBI International recently completed a feasibility study for Big River Resources and is finalizing a business plan for the group.

Big River Resources begin meetings

A recent study has shown Missouri may be able to support three more ethanol plants. The state already has facilities in Macon and Craig. Last month, the leaders of the Missouri Corn Growers Association (MCGA) and the Missouri Corn Merchandising Council (MCMC) announced the completion of a statewide study to determine employment and economic benefits of fuel ethanol production in Missouri. MCGA and MCMC commissioned the study in November 2001 to help quantify the impact of current and planned ethanol production in the state. The three-month study evaluated direct and indirect benefits of ethanol production in Missouri using actual financial results from the plants and a sophisticated statistical modeling.

Results of Missouri Ethanol Economic Impact Study released

Experts in the United Kingdom say ethanol could revolutionize the nation's agriculture. Some officials are even talking about a nationwide 10% ethanol mandate. It has been proposed that the government support additional research on ethanol production and use.

UK sugar industry may look to ethanol

In terms of legislative support for ethanol, perhaps no state has a stronger constituency than South Dakota with U.S. Senate majority leader Tom Daschle (D), Sen. Tim Johnson (D), and the headquarters of the American Coalition for Ethanol in Sioux Falls.
 	
 In addition to the probable inclusion of a renewable fuels standard in the pending U.S. Senate energy bill, South Dakota producers and future producers recently won big with in-state legislation that nearly triples South Dakota's total ethanol production payments from $2.5 million in 2003 to $7 million in 2006. The state's success has come in large part to the creation of its ethanol producer incentive fund which sustains ethanol development with a $.02 per gallon fuel tax exemption for ethanol blends. State legislators are calling the recent funding expansion a "win-win" situation for agriculture and industry in South Dakota.
 	
 "Historically, it is the first time we have had additional funds added to the ethanol producer incentive," said Darrin Ihnen president of the South Dakota Corn Growers Association. "This legislation will significantly impact ethanol's continued development in the state."
 
 Five plants online
 Including Broin Enterprises (Scotland), Dakota Ethanol (Wentworth), Heartland Grain Fuel (Aberdeen and Huron) and Tri-State Corn Processors (Rosholt), South Dakota now has five ethanol plants online, producing an estimated 90 mmgy. Two ethanol plants under construction - Northern Lights Ethanol (Earlville) and Glacial Lakes Energy (Watertown) will bring the state's total production to near 170 mmgy no later than this fall. 
 
 Projects on deckThe Dakota Value Capture Cooperative (DVCC) has completed its equity drive, raiseing over $24 million in private investments for an integrated $61 million project. The group is expected to break ground on the project in April. The cooperative was formed by a group of farmers and ranchers from South Dakota to build a unique "closed-loop" facility consisting of an efficient ethanol plant and a climate-controlled feedlot for cattle connected by a state-of-the art anaerobic digestion system. A 310-acre site for the agricultural complex has been chosen in a sparsely-populated region north of Pierre and east of the Missouri River, in Sully County.

 	
 A Mitchell, S.D.-based group is exploring the possibility of building an ethanol plant somewhere in that part of the state, and Brookings S.D. -based VeraSun is aggressively pursuing leads on a project that could eventually bring three large ethanol plants to the region as well. VeraSun recently named longtime Commercial Alcohols Inc., employee Matt Janes as its Chief Operating Officer. 
 	
 All told, industry analysts predict that South Dakota will be producing in the neighborhood of 260 mmgy in the next two to four years.

S.D. has five ethanol plants online, two under construction and others in the planning stages

South Dakota is becoming a Midwest ethanol hub

Fairfield, N.J.-based PhibroChem, a division of Phillips Brothers Chemicals Inc. (Fort Lee, N.J.), announced to Ethanol Producer Magazine early this month that the company has assembled an international sales and research team to manage an anticipated increase in worldwide sales of antimicrobial Lactrol. 
 	
 John Cuomo, PhibroChem Global Business Manager (formerly Pfizer Account Manager) announced that longtime Williams Ethanol Services, Inc., microbiologist and marketing manager Stan Janson has joined PhibroChem as North American Business Manager (see side bar, next page).
 	
 Recently, the company also signed Canadian microbiologist Dennis Bayrock to continue his extensive research on the control of microbial contamination during continuous culturing. For the last seven years, Bayrock has been conducting research alongside University of Saskatchewan researcher Dr. Mike Ingledew. At PhibroChem, Bayrock will essentially help the company solve production problems associated with common microbial contaminants in batch and continuous fermentations that typically decrease yields and ultimately affect production throughput. 		
 
 Lactrol is one of several antimicrobials known to effectively control bacterial infection during fermentation. As ethanol producers understand all too well, bacterial contaminants not only compete with yeast for nutrients during fermentation, but also produce lactic acid and other organic by-products that inhibit yeast activity. 
 	
 The active ingredient in Lactrol, Virginiamycin, has been used in specific industrial applications for decades, but Lactrol itself was not introduced to the ethanol industry until 1994. Originally a Pfizer product, Lactrol was sold to Phillips Chemical Company in 2000. Lactrol competes for market share with products such as Lacticide and Penicillin. 
 	
 "This area of research (fermentation population dynamics and control of microbial contamination during continuous ethanol fermentation) is relatively new and unexplored - at least unanswered," Bayrock said. "So many questions remain in this specific area. And PhibroChem is not just doing research for the sake of doing research; we're trying to find practical solutions to real fermentation problems. Customer specific questions such as: Where is the best place to add antimicrobials? How much should be added? How frequent? How should it be added? Research tailored to answer these questions on a client by client basis would be extremely useful to Phibro's clients. We are committed to this style of research where our clients questions are answered with practical solutions to real fermentation problems. Lactrol is a great product, but we can use it smarter and sell it smarter. That's what PhibroChem has set out to do."
 	
 Using Lactrol to increase production throughput is the modern approach to fighting contamination, Cuomo and Bayrock said. When low levels of contamination exist, organisms (such as Lactobacillus) may be "multiplying and robbing" trace nutrients from the yeast. 
 	

 "Just like you and I, yeast cannot survive on a sugar diet alone," Bayrock explained. "Without these nutrients, a (production facility) might eventually produce the same amount of alcohol as compared to fermentations where nutrients are optimal, but at a much slower rate. . . the yeast multiples slower and, in turn, hinders throughput." 		Cuomo added, "It's not simply about yield these days, but rather how much a producer can push through a system in a given time period. The bottom line for ethanol producers is efficiency. Increasing ethanol concentration in the beerwell or getting more throughput through the same equipment lowers their cost per gallon of alcohol, increasing their bottom line. We like to think of our product as a management tool for greater efficiency. Producers should be using these products preventatively."
 
 Global Business
 In 2001, PhibroChem decided to aggressively pursue new business and expand existing accounts on an international level, Cuomo said. Much of the company's recent efforts have been focused on North America and the ethanol market in Brazil, where the company has hired Ricardo Ventura to manage accounts, Cuomo said. 
 	
 The company also maintains a research facility in Rixensart, Belgium, where Dr. Francis Gossle is conducting research on several Lactobacillus species that will compliment Bayrock's research as well as investigating several new molecules that control Lactobacillus. 
 	
 
 "I think the strength of our team lies in our unique abilities and diverse professional backgrounds," Bayrock said. "Stan (Janson) is our eyes and ears in North America, John (Cuomo) is taking the business to a global level. We all have skills that compliment each other very well. It's a very exciting time to be in this business."

Stan Janson, Dennis Bayrock join international Lactrol sales and research team

PhibroChem wants client feedback on antimicrobial

PhibroChem announced this month that longtime Williams Ethanol Services, Inc. employee Stan Janson has joined PhibroChem as North American Business Manager. Janson, whose last position at William was comprised of both technical support and sales duties, departed Williams Feb. 22 and started immediately at PhibroChem. 
 	
 Janson had been employed at Williams (formerly Pekin Energy) for 13 years, seven of which he worked as a microbiologist responsible for monitoring conversion and fermentation processes. Later, he became a coordinator (plant supervisor) running a shift at the Pekin, Ill. facility, during which time he was specifically responsible for operating the conversion and fermentation areas. Before his departure from Williams, Janson moved into marketing and fermentation, selling the company's yeast products. 
 	
 At PhibroChem, Janson is now responsible for all North American Lactrol accounts.	
 	
 "The business is very interesting to me," Janson told Ethanol Producer Magazine. "It gives me the opportunity to continue solving problems with a scientific, hands-on approach."

March 2002

Business Briefs

Janson joins PhibroChem

Columns

The Way I See It

Featured

RFA's National Ethanol Conference Draws Over 600 to San Diego

Ethanol Plant managers help plan 2002 International Fuel Ethanol Workshop & Trade Show

Ethanol and oil leaders come together on RFS

Bio-Renewable Group offers proven technology, impressive engineering & construction capabilities

Mike Bryan credits career success to integrity, quality service

Jack King believes ethanol should be an environmental problem solver

South Dakota is becoming a Midwest ethanol hub

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

Business Briefs

Janson joins PhibroChem

Columns

The Way I See It

Featured

RFA's National Ethanol Conference Draws Over 600 to San Diego

Ethanol Plant managers help plan 2002 International Fuel Ethanol Workshop & Trade Show

Ethanol and oil leaders come together on RFS

Bio-Renewable Group offers proven technology, impressive engineering & construction capabilities

Mike Bryan credits career success to integrity, quality service

Jack King believes ethanol should be an environmental problem solver

South Dakota is becoming a Midwest ethanol hub

March 2002