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Economists project impact of lower gas prices on ethanol profits

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By Susanne Retka Schill

December 12, 2014

Business Markets 

With oil prices dropping dramatically, the possible impact on ethanol profitability was examined by University of Illinois ag economists Scott Irwin and Darrel Good in a recent FarmDocDaily post.

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On Dec. 10, the House Committee on Oversight and Government Reform Subcommittee on Energy Policy, HealthCare and Entitlements held a hearing focused on the U.S. EPA's implementation of the renewable fuels standard (RFS).

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The Year That Wasn't

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By Bob Dinneen

December 12, 2014

Bob Dinneeen writes the Renewable Fuels Association annual in and out list after a year in which the EPA announced it was delaying the publication of the annual RVO rule for 2014.

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Genera Energy Inc. has received a strategic financing commitment from WindSail Capital Group, a Boston-based investment firm that provides growth financing to companies advancing energy innovation and sustainability.

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Executive Editor Tim Portz paid a visit to editorial board member Stacy Cook from Koda Energy to get a cover photo. He got a cover photo and a tour of Koda's new fuel receiving infrastructure, designed for maximum safety.

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Leading biomass supply company, Genera Energy Inc., has received a strategic financing commitment from WindSail Capital Group, a Boston-based investment firm that provides growth financing to companies advancing energy innovation and sustainability.

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Commodity hedgers are facing another round of changes in position limits. The comment period has been reopened for the Commodity Futures Trading Commission's last proposal on position limits for agricultural commodities.

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BNSF Railway Co. reported it held only four ethanol unit trains and 105 grain unit trains short of designation or scheduled interchange for longer than six hours during the week ending Dec. 6. Canadian Pacific held six ethanol and six grain trains.

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German Pellets GmbH has released its third quarter financial results, reporting a good start to the heating season and a new 10-year contract with a European customer. The company also announced its Louisiana pellet plant will begin operations soon.

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Moving Forward, Not Backward

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By Tom Buis

December 11, 2014

It is of critical importance that the U.S. EPA moves forward, not backward in meeting the goals of the RFS as it reworks the 2014 renewable volume obligation rule, writes Tom Buis of Growth Energy.

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Lincolnway Energy LLC reported net income of $18.0 million, or $428.70 per unit, for the fiscal year ended Sept. 30. The company also highlighted several improvements made at the plant, including the installation of a natural gas boiler.

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NatureWorks and Northern Technologies International Corp. have announced they are collaborating on marketing and sales of Ingeo in India and surrounding countries, including Bangladesh, Pakistan, and Sri Lanka.

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Thermal Power Service division of Alstom Hungary Ltd. has successfully accomplished its first air quality project. Alstom supplied and put in operation two new electrostatic precipitators in one of the biomass-fired blocks of Pecs Power Plant.

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The New Zealand Superannuation Fund has made a $60 million equity investment in leading gas fermentation company LanzaTech. The company turns waste gas from steel mills into ethanol and other high value fuels and chemicals.

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Paul Smith's College is installing a highly sustainable, state-of-the-art wood-pellet boiler system, which will heat its three academic buildings. The project was partially supported by the New York State Energy Research and Development Authority.

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Rivertop Renewables, a Montana-based specialty chemicals company, has begun construction of its first commercial plant, located at DanChem Technologies Inc.'s facility in Danville, Virginia. The facility will produce several biobased products.

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Supply and demand numbers for U.S. feed grains were mostly unchanged in the Dec. 10 World Agriculture Supply and Demand Estimates report, with a small increase in projected corn food, seed and industrial use reducing ending stocks slightly.

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Greenbelt Resources raises $550,000

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By Greenbelt Resources Corp.

December 10, 2014

Greenbelt Resources Corp. has raised $550,000 from individual qualified accredited investors. The net proceeds will be used for working capital needs, including the transition of the company's R&D facility to a commercial biorefinery.

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Ethanol Producer Magazine digs into the details of ethanol production in Iowa and how the industry got started.

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Indiana landfill gas-to-energy project begins operations

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By Republic Services Inc.

December 10, 2014

Republic Services recently announced the start of operations at its latest landfill gas-to-energy project. The new 6 MW project at County Line Landfill involves four engines operating at one energy generation facility.

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KiOR Inc. is expected to proceed with a bankruptcy auction in early January following a Dec. 8 order issued by a judge with the U.S. Bankruptcy Court for the District of Delaware.

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Kansas challenges EPA ethanol emissions model

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By Kansas Attorney General's Office

December 10, 2014

Kansas Attorney General Derek Schmidt has asked a federal appeals court to block new U.S. EPA regulations that discourage the use of ethanol by requiring states to adopt conclusions about ethanol emissions not backed by scientific facts.

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A new ASTM International standard will be used in isobutanol manufacturing to test its purity for use in the chemical and fuel markets. Isobutanol manufacturers and quality laboratories that work with fuels will be the primary users of ASTM D7875.

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The fate of an ordinance that would require gas stations in Chicago to carry E15 is still unknown. Passed by the city council's finance committee on Monday, a vote by the full council was deferred Dec. 10 for at least a month.

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Stora Enso will concentrate its new biomaterials business development in an innovation center that will be located in the Stockholm area in Sweden. The center is expected to open during the second quarter of 2015.

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The Federal Energy Regulatory Commission's Office of Energy Projects recently published its Energy Infrastructure Update for October, reporting seven biomass units with a combined 102 MW capacity was were placed into service during the month.

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Iowa is home to two ethanol plants currently producing cellulosic ethanol and one that is nearing construction completion. Another notable project is algae production colocated with a corn-ethanol plant.

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A new ASTM International standard will be used in isobutanol manufacturing to test its purity for use in the chemical and fuel markets. Isobutanol manufacturers and quality laboratories that work with fuels will be the primary users of ASTM D7875.

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The biofuels mobile education center is a 45-foot long trailer filled with interactive touch screen computers, educational displays, movies and more, to educate visitors about ethanol and other biofuels.

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Leaders of Sustainable Biofuels, an industry coalition to promote advanced biofuels, met on Dec. 4 at the European Parliament. LSB, chaired by UPM's Marko Janhunen, is advocating for a strong EU-wide subtarget for advanced biofuels.

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