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New SEC Rules Change the Landscape for Raising Capital

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By Joseph F. Leo

February 16, 2014

Business Markets 

Pursuing an unregistered capital raise using advertising and general solicitation may require additional steps in order to comply with SEC regulations, but it may provide a company access to investors that were previously unavailable.

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Curtailing ethanol blending this year may have a moderate effect on near-term corn prices, while broader, long-term consequences loom. Observers think the EPA will ultimately set the RVO above 13 billion gallons. How far above 13 no one knows.

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The ethanol industry has made a compelling case to help the EPA come to its senses. We'll see a final RFS rule for 2014 very soon, and we'll determine what steps are necessary to preserve it for consumer choice once the agency's decision is final.

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The DGTC board of directors has now asked me to serve as the next CEO and executive director. It is an honor to carry on this long-standing legacy. Yes, much work has been done over the past several decades, but much more work must be done.

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The U.K. Department of Energy and Climate Change has published updated statistics on its renewable transport fuel obligation for the full 2012-'13 compliance year and a portion of the current compliance year, which ends on April 14.

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Corn's value has retreated, but the costs of fertilizer, seed, land and machinery remain high. Have inflated expenses reset the break even point for American growers?

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2014: The Year of E15

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By Tom Buis

February 14, 2014

Big Oil knows its arguments are falling flat, and is now trying to change the topic, misleading consumers by making false claims such as ethanol causes engine failure in extreme cold weather and implying that 'misfueling' is a major consumer risk.

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We can beat Big Oil, but as we move ahead, part of the go-forward strategy, even at this late date, has to be to a stronger emphasis on selling the merits of ethanol to the public. If we are going to win the war, we need more than just farmers.

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NCGA's ethanol committee meets in Detroit

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By National Corn Growers Association

February 13, 2014

The National Corn Growers Association's Ethanol Committee met last week in Detroit, Mich., to discuss everything from the latest research on ethanol use in small engines to growing opportunities for distiller's grains.

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The Railway Supply Institute Committee on Tank Cars has called on the U.S. Department of Transportation to consider several new safety measures for tank cars carrying crude oil and ethanol.

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Ron Beemiller, president and CEO of WB Services LLC, has announced the launch of a Clean Energy Scholarship Program. The purpose of the scholarship is to promote the study and ultimately a career in the field of renewable fuels.

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The Andersons Inc. has released financial results for the fourth quarter and full year results for 2013, reporting record operating income of $50.6 million for the company's ethanol group. In 2012, the group reported a $3.7 million loss.

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Natural gas prices have pushed up above $4.50 for the prompt NYMEX contract. That will be sufficient to limit natural gas consumption for power generation, but the demand reduction from fuel switching may also not be enough to rebuild inventories.

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The days of distillers grains being 140 percent the value of corn are behind us, at least near-term. With the Chinese New Year upon us, it is not clear how quickly we will get a resolution on China's intentions. Whatever happens will impact 2014.

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The biggest factor in ethanol markets will be projections of corn planting and building strength in the economy. Any economic strength seen through the first quarter is expected to result in increased gasoline demand, sparking higher ethanol usage.

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ADM invests in Rennovia

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By Archer Daniels Midland Co.

February 11, 2014

Archer Daniels Midland Co. has committed to a $25 million equity investment in Rennovia Inc., privately held company that develops catalysts and processes for the cost-advantaged production of chemical products from renewable feedstocks.

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The U.S. Energy Information Administration has revised its forecast for 2014 ethanol production in its February Short-Term Energy Outlook. The EIA now predicts the U.S. ethanol industry will produce an average of 908,000 barrels per day this year.

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An ethanol-fueled vehicle designed by a team of students from Thailand earned the top place at the Shell Eco-marathon Asia 2014. Team "How Much Ethanol" from Panjavidhya Technological College Thailand drove 2,730 kilometers on a 1 liter of ethanol.

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According to a new report from Navigant Research, global demand for biofuels for road transportation will grow from 32.4 billion gallons in 2013 to 51.1 billion by 2022. The report analyzes the emerging markets and future opportunities for biofuels.

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With no changes to production estimates, the USDA's monthly World Agriculture Supply and Demand Estimates report lowered feed grain ending stocks for the marketing year in progress based on a 150-million-bushel increase projected for corn exports.

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The passage of the Farm Bill will positively impact the biomass industry and help to spur on additional development of renewable energy, according to several leading biomass companies and organizations that praised the long-awaited bill.

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President Obama signed the 2014 Farm Bill into law during a Feb. 7 ceremony at Michigan State University. During his speech, Obama also announced the launch of a new "Made in Rural America" export and investment initiative.

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Green Plains Renewable Energy Inc. reported its best quarter ever in its fourth quarter earnings report, producing a record 209.6 million gallons of ethanol and hitting 100 percent of its daily average capacity.

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The Greenbrier Companies announced that it will design a new generation tank car of the future for rail transport of crude oil and ethanol that can better withstand the additional demands associated with operating unit trains.

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Leaf Energy Ltd. recently announced it has received a preliminary report from Andritz AG outlining the results of a pilot-scale trial of Leaf Energy's Glycell Process, a glycerol pretreatment process, at the Andritz pilot plant in Springfield, Ohio.

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Greenwood Resources earns RSB, FSC certifications

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By Roundtable on Sustainable Biomaterials

February 06, 2014

The Roundtable on Sustainable Biomaterials has announced that Greenwood Tree Farm Fund LP has become the first short rotation forest plantation worldwide to earn certification under the RSB.

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According to new government data, U.S. ethanol exports totaled 621.5 million gallons in 2013, the third-highest annual total on record, while exports of distillers grains set a new record of 9.7 million metric tons.

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Southwest Iowa Renewable Energy has released financial results for the first quarter of its fiscal year 2014, reporting some of the best margins in the company's history. The plant produced 33.2 million gallons of ethanol during the quarter.

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ePURE warns of surging ethanol imports from Peru

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By European Renewable Ethanol Association

February 05, 2014

The European Renewable Ethanol Association (ePURE) has warned the European Commission of surging ethanol imports from Peru since the entering into force of the free trade agreement in August 2013, noting that Peru imports ethanol from the U.S.

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ICM Inc. announced that Pacific Ethanol Inc. has purchased its patent-pending Selective Milling Technology for use at the Pacific Ethanol Magic Valley plant in Burley, Idaho. There are now 15 North American plants that plan to utilize the process.

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