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Blog: More ethanol producers should sell directly to consumers

By Holly Jessen

August 17, 2015

Business Markets 

I don't usually consider myself to be in the position to advise ethanol producers on how they should do things. But in this case, I'm going to go on record strongly encouraging ethanol producers to cut out the middleman and step into direct sales.

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Lincolnway Energy LLC has announced financial results for the third quarter of its fiscal year 2015, the three months ended June 30. The company reported net income of $600,000, or $14.24 per unit. Gross profit for the quarter was $1.3 million.

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Getting the right business model drives E85 sales. This article appears in the September issue of EPM.

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Renewable Fuels Association President and CEO Bob Dinneen asks U.S. EPA to provide relief to consumers in wake of refinery outage in Whiting, Indiana. According to the RFA, E15 could help alleviate spikes in gasoline prices.

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The U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy has announced an open meeting of the Biomass Research and Development Committee. The event is scheduled to be held Aug. 27-28 in Washington, D.C.

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A report recently filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network provides an overview of the European Union's liquid biofuel industry, including information related to ethanol and biodiesel.

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A small number of ethanol producers sell E85 and other ethanol blends directly to consumers with on-site blender pumps or, in a few cases, own retail gas stations. This article is titled "Producers Tackle Blend Wall" in the September issue of EPM.

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Through an expansion of an existing partnership, Patriot Capital Corp. is offering a zero-percent financing program to dealers who enlist Protec Fuel to create or expand their capabilities in offering E15, E85 and higher ethanol fuel blends.

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EPA's Mobile Vehicle Emissions Simulator relies on faulty, manipulated data, resulting in inaccurate emission increases and will cripple any hope of ethanol expansion, writes Dave VanderGriend. This column appears in the September issue of EPM.

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Poet LLC released its first-ever economic impact study, revealing the significant impact the company made to national economic growth and job creation in 2014. Poet operates 27 ethanol plants accounting for 11 percent of U.S. capacity.

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Southwest Iowa Renewable Energy LLC has released financial results for its fiscal year 2015 third quarter, the three months ended June 30. SIRE reported net income of $6.1 million, or $457.04 per basic unit, for the quarter.

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The topic of how higher ethanol blends help fuel retailers to succeed will be highlighted during the ACE conference in Omaha, Nebraska. Todd Garner of Protec Fuel and Jim Pirolli of Kum & Go will participate in an E15 panel during the event.

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Brand ambassadors target consumer education for lasting results. This article appears in the September issue of EPM.

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An annual biofuels report recently filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network provides an overview of Thailand's ethanol industry, reporting production of fuel ethanol is expected to grow.

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Aemetis Inc. has released second quarter financial results, reporting revenues of $38.1 million, down from $57.2 million during the same period of 2014. Net loss was $6.3 million, compared to a net income of $2.7 million for the same quarter of 2014.

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Celebrating a decade of success: The RFS turns 10

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By Renewable Fuels Association

August 07, 2015

This Saturday marks 10 years since the Energy Policy Act of 2005 containing the original renewable fuel standard (RFS) was signed into law. The Renewable Fuels Association has compiled a report examining the impact of the RFS over the past decade.

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Nebraska Gov. Pete Ricketts and Iowa Gov. Terry Branstad has jointly announced the launch of a statewide pump labeling initiative to promote the American Ethanol brand, which will provide nationwide consistency in pump labeling for ethanol blends.

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UNICA, the Brazilian sugarcane industry association, has reported that mills in the country's south-central region continued to prioritize ethanol production during the first half of July. Rains, however, disrupted harvest activities.

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RFA offers free fuel to motorcyclists at Sturgis Rally

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By Renewable Fuels Association

August 05, 2015

Continuing its four-year tradition, the Renewable Fuels Association will be on hand to provide free E10 fill-ups for bikers during the annual motorcycle rally held in Sturgis, South Dakota, Aug. 2 through Aug. 6.

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Gevo Inc. has released second quarter financial results, reporting revenue of $8.9 million, up from $7.7 million during the same period of 2014. The net loss was $17.8 million, compared to $17.2 million during second quarter of last year.

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Abengoa has released half year financial results, reporting revenues of EUR 3.39 billion ($3.71 billion), up 3 percent when compared to the first six months of the prior year. EBITDA increased by 9 percent, reaching EUR 650 million.

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An ethanol export promotion strategy developed in consultation with industry partners and the USDA was presented to U.S. Grains Council members from throughout the grains sector at USGC's 55th Annual Board of Delegates Meeting.

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Argonne National Lab finds butanol is good for boats

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By U.S. DOE/Argonne National Laboratory

July 30, 2015

Argonne National Laboratory recently teamed with industry to investigate alternative fuels for recreational marine applications. Research has demonstrated the safety and effectiveness of a blend of fuel that includes 16 percent butanol.

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Gevo Inc. has announced that Express Lube of Fredericksburg, Texas, is the first U.S. service station to sell gasoline blended with Gevo's renewable isobutanol at the pump. Express Lube has been selling the fuel at over a 50 percent premium to E10.

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Pacific Ethanol Inc. has released second quarter financial results, reporting the company sold a record 140.7 million gallons of ethanol during the three-month period. Net sales were $277.6 million and gross profit was $6.3 million.

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A team of Canadian buyers and end-users of U.S. distillers dried grains with solubles (DDGS) recently visited the United States on a learning journey cosponsored by the U.S. Grains Council and the Corn Marketing Program of Michigan.

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Commodities: Natural gas delivery change lowers prices in Midwest

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By Ben Straus, U.S. Energy Services Inc.

July 29, 2015

The Rockies Express Pipeline (REX) went into service in 2009, running from Wyoming to Ohio. At the time, gas out west was relatively cheap, and the eastern supply sources in decline. Now, REX is in the process of reversing its flow.

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As August approaches, values in the DDGS market have rebounded a bit. Chinese cargoes, which last month looked to be a lot more at risk of getting executed, either did get shipped, or got rolled to a deferred month.

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Ethanol futures posted a strong 20-cent-per-gallon price retraction in the last half of July, following aggressive pressure in corn prices and most outside markets. As of July 27, RBOB gasoline futures had fallen over 30 cents from season highs.

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