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RIN prices climb to new heights

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By Chris Hanson

July 25, 2013

Business Markets 

Prices for ethanol renewable identification numbers (RINs) increased to $1.46 per gallon on July 18, before dropping this week. University of Illinois economists point to the blend wall and expectations of market participants in driving the spike.

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The former New Energy Corp. ethanol plant in South Bend, Ind., has a new owner that plans to restart the facility in late 2013 or early 2014. Noble Americas South Bend Ethanol LLC, a subsidiary of Nobel Americas Corp., purchased the plant at auction.

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Kinder Morgan Energy Partners L.P. recently released financial results for the second quarter of 2013, announcing its Terminals segment and Products Pipelines segment handled 25.3 million barrels of ethanol during the three month period.

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Gevo Inc. has begun supplying the U.S. Coast Guard Research & Development Center with initial quantities of finished 16.1 percent renewable isobutanol-blended gasoline. The fuel is being used for a long-term operational study on marine engines.

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The House Energy and Commerce Committee Subcommittee on Energy and Power is holding a two-day hearing on the renewable fuels standard (RFS). The first day featured two panels discussing the impact of the RFS on fuel production, fuel sales and use.

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DuPont, NCGA launch program to empower farmers as leaders

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By DuPont and National Corn Growers Association

July 23, 2013

DuPont and the National Corn Growers Association have announced a new training program, the NCGA DuPont New Leader Program. The initiative will help to empower growers to share their story of their farms and the benefits of a robust agriculture.

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DuPont has won an appeals court case. The U.S. District Court for the Western District of Wisconsin has affirmed a May 2012 decision that an alpha-amylase enzyme patent held by Novozymes is invalid due to lack of adequate written description.

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A recent report from Navigant Research, titled "Market Data: Biofuels," indicates annual revenue from biofuels production will reach $7.6 billion by 2023, with $69 billion invested in new production capacity worldwide over the next 10 years.

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NASCAR driver Austin Dillon visited Poet-Biorefining - Portland today as part of his American Ethanol Heartland Tour. Dillon toured the biorefinery, signed autographs and took part in a Q&A with POET team members and farmers.

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Germany-based CropEnergies AG has acquired U.K.-based ethanol producer Ensus Ltd., which operates a 400 MMly (105.7 MMgy) wheat ethanol plant in Yarm, England. The plant originally commenced operations in 2010.

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An annual biofuels report recently filed with the USDA Foreign Agriculture Service Global Agricultural Information Network provides an overview of Canadian ethanol industry, noting that 15 ethanol plants are expected to be operational in 2013.

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Hydro Dynamics Inc. of Rome, Ga., announced that it has been granted a patent (U.S. Patent Number: 8,430,968) covering its Shock Wave Power Reactor (SPR) cavitation technology for ethanol yield enhancement.

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John Deere introduced a flex-fuel model to its ZTrak line of commercial lawn mowers. The new, industry exclusive, Z925M Flex Fuel is compatible with the full range of fuels from E0 to E85 and delivers improved horsepower, torque and fuel efficiency.

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Ceres Inc. has announced financial results for the third quarter of fiscal year 2013, reporting revenues of $1.4 million. The company also provided an update on its Brazil operations, including achievements in the fuels and power sectors.

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Thanks to a promotion by North Dakotans for Energy Independence, flex-fuel vehicle (FFV) owners in the state can receive coupons for discounts on higher ethanol blends and enter to win a $1,000 fuel card. The awareness campaign runs through December.

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Chemtex, Murphy-Brown sign biomass supply agreement

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By Chemtex International Inc.

July 17, 2013

Chemtex International Inc. and Murphy-Brown LLC have signed a long-term agreement for the supply of purpose grown energy crops and residues to be used as cellulosic feedstock in Project Alpha, Chemtex's proposed cellulosic ethanol facility.

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While the pricing of distillers dried grains with solubles is primarily explained by the relative value of energy, protein, corn and soybean meal prices, University of Illinois economists find there is significant variation to those relationships.

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The ethanol industry has been quick to criticize the new anti-renewable fuels standard (RFS) advertising campaign launched by the American Petroleum Institute this week, calling it misleading, unfounded and unscientific.

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SD ethanol industry has $3.8 billion impact on 2012 economy

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By South Dakota Ethanol Producers Association

July 16, 2013

The South Dakota Ethanol Producers Association released a study, "The Economic Impact of the Ethanol Industry on the South Dakota Economy in 2012," showing more than a $3.8 billion overall impact, more than a $2 billion increase from 2004.

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California's Fifth District Court of Appeal issued its opinion in the lawsuit filed by Poet LLC against the California Air Resources Board. The court is upholding the low carbon fuel standard, but requires CARB to correct implementation errors.

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East Kansas Agri-Energy LLC is preparing for restart this fall after idling in October. The largest shareholder of the plant, Clean Energy Capital LLC, aims to implement a strategic plan that would replace most members of the board of directors.

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A recent vote by the EU Parliament's Environment Committee has voted to adopt the report of Corinne Lepage, prompting comment by ePURE, which represents the EU ethanol industry, and UNICA, the Brazilian Sugarcane Industry Association.

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The European Commission and members of European industry will invest more than EUR 22 billion ($28.70 billion) over the next seven years under the Horizon 2020 research initiative. A portion of that investment will support biobased innovations.

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A group of biofuels experts gathered July 11, in Washington, D.C., to discuss the so-called blend wall, E15 and progress on the cellulosic ethanol front. The event was hosted by Fuels America, in cooperation with two members of Congress.

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The drought forced the hand of Poet Biorefining-Macon's board of directors, leading to the installation of long-planned upgrades during an extended shut down.

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Halfway Through, Not Half Bad

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By Ron Lamberty

July 11, 2013

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Vecoplan LLC was the proud sponsor of car #23 at the NASCAR Nationwide "Feed the Children 300" on June 28 at Kentucky Speedway. The #23 Vecoplan Ford Mustang was fielded by Rick Ware Racing and driven by Harrison Rhodes.

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Using satellite technology, Genscape LandViewer has developed a spatial-based algorithm to predict corn planted on a parcel by parcel basis. The tool can more accurately account for last minute planting decisions that were missed by grower surveys.

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The Biomass Research and Development Initiative Technical Advisory Committee appointed Kevin Kephart as the new co-chair. He will assist the committee in the research, development and production standards of biomass-derived fuels and materials.

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The U.S. Energy Information Administration has released the July edition of its Short-Term Energy Outlook, noting that ethanol production has been increasing since April, reaching 870,000 barrels per day in June.

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