American Fuels

UGI Commits Funding for Largest Renewable Natural Gas Project to Date

2022-05-16T17:18:00.000-04:00

UGI Energy Services, LLC (“UGIES”), a subsidiary of UGI Corporation (NYSE: UGI), today announced an agreement with MBL Bioenergy to fully fund the first set of renewable natural gas (“RNG”) projects currently under development in South Dakota. In total, the project will represent over $70 million of investment by MBL Bioenergy, of which 100% of the funds will be provided by UGIES. MBL Bioenergy is a joint venture partnership between UGIES, Sevana Bioenergy and a subsidiary of California Bioenergy (“CalBio”) with the sole purpose of developing RNG projects in South Dakota.

The first set of projects, known as a cluster, will be built at three farms located north of Sioux Falls, SD, and is expected to generate approximately 300 million cubic feet of RNG annually once completed in calendar year 2024. Dairy waste from the farms will be anaerobically digested and then piped to a central upgrading facility before it is delivered into the interstate natural gas system near Dell Rapids, SD. UGIES, through its wholly-owned subsidiary, GHI Energy, will be the exclusive marketer for MBL Bioenergy.

“This project sets a new standard for UGI in terms of scope and size and represents a huge milestone in UGI’s investments in, and expected earnings contribution from, RNG projects,” said Robert F. Beard, Executive Vice President - Natural Gas, Global Engineering, Construction & Procurement, UGI. “We are pleased to be partnering with industry-leading developers on this project that will substantially reduce greenhouse gas emissions, using dairy RNG as a vehicle fuel. We look forward to making additional investments in our MBL partnership as we advance the use of RNG as an environmentally responsible and clean energy solution.”

“This partnership with UGI is another positive step forward in expanding our carbon negative renewable natural gas business,” said N. Ross Buckenham, CEO of CalBio. “Our dairy methane capture and refining projects are delivering significant environmental benefits, improving economics for dairy farm partners and supplying a clean burning diesel replacement fuel. Through our subsidiary, Midwest Bioenergy LLC, this joint venture with UGIES, a new, powerful and committed strategic partner, anchors our dairy RNG expansion into the Midwest and will significantly expand our fuel production.”

“Sevana brought together exceptional partners to build this industry-leading RNG project. We are excited to strengthen our existing relationship with UGI to decarbonize transportation fuels through this and other projects. Sevana’s team of biogas experts is deploying state-of-the-art renewable energy technology in multiple RNG projects to form value-adding partnerships in agricultural communities,” said Steve Compton, President of Sevana. “We appreciate the opportunity to work closely with our partners and South Dakota farmers and communities to benefit the local economy and environment.”

Bank OZK Breaks Ground on Solar Power Plant in Arkansas

2021-06-12T17:02:00.000-04:00

As part of its sustainable energy initiative, Bank OZK broke ground recently on its Arkansas-based $6-million solar power plant. Once complete, the 4.8-megawatt array will produce enough electricity to power the Bank’s new corporate headquarters in Little Rock and up to 40 Bank OZK locations throughout the state. Currently, it is the largest renewable energy investment by a financial services company in the state of Arkansas.

“An industry innovator, Bank OZK has a bold vision for the future, which includes a strong commitment to sustainable and clean energy,” said Tim Hicks, Chief Credit and Administrative Officer at Bank OZK. “This solar power plant will allow us to reduce our carbon footprint by 160,000 tons over the next 30 years.”

The Arkansas Public Service Commission and Federal Deposit Insurance Corporation approved the Bank’s plans for the solar power plant in March 2021. Scenic Hill Solar, LLC, of North Little Rock, Arkansas, will oversee construction of the 11,000-panel, single-axis array. The facility is expected to generate more than 8.1 million kilowatt-hours annually. Located in Stuttgart, Arkansas, it will be the state’s third-largest commercial solar facility dedicated to a private sector customer.

Green Plains Enters into Agreement to Sell Ord, Nebraska Ethanol Plant

2021-01-29T12:54:00.001-05:00

Green Plains Inc. announced recently that its subsidiary, Green Plains Ord LLC, has entered into an asset purchase agreement with GreenAmerica Biofuels Ord LLC to sell its 65 million gallon ethanol plant located in Ord, Neb. for $64 million, plus working capital.

“The sale of our Ord, Nebraska plant is another step in our overall “fully funded” strategy to rapidly construct and implement our Ultra-High Protein production technology across our biorefining platform,” said Todd Becker, president and chief executive officer. “We believe this sale enables us to create additional value for our shareholders by efficiently deploying capital to support our transformation through technological advancements in proteins, sustainable corn oils and clean sugars acquired in the recently announced Fluid Quip Technologies transaction.”

Green Plains Ord LLC has also entered into an asset purchase agreement with Green Plains Partners LP and its affiliates (Partnership) to acquire the storage and transportation assets and the assignment of railcar leases associated with the Ord ethanol plant for $27 million, which will be utilized to pay down the Partnership’s debt. In addition, the storage and throughput services agreement will be amended to adjust the minimum volume commitment to 217.7 million gallons per quarter and to extend the maturity date by one year to June 30, 2029.

“We believe the value achieved from the sale of the Ord facility begins to demonstrate that we remain undervalued relative to the potential of our portfolio. As we execute on our total transformation strategy, adding additional innovative, sustainable and clean products produced at our biorefineries through the application of these technologies, we believe our value will continue to increase,” concluded Becker.

Green Plains will record a pre-tax gain of approximately $37 million related to the transaction. Both transactions are anticipated to close within the next 45 days. The purchase agreements are subject to customary closing conditions and contain ordinary and customary representations, warranties and indemnification obligations.

Ocean Park acted as the exclusive financial advisor to Green Plains and Sidley Austin LLP served as legal advisor to GreenAmerica Biofuels Ord LLC in connection with the transaction.

U.S. wind energy production tax credit extended through 2021

2021-01-29T12:47:00.000-05:00

The timing and magnitude of wind turbine installations in the United States are often driven by tax incentives. The U.S. production tax credit (PTC), a per-kilowatthour (kWh) credit for electricity generated by eligible renewable sources, was first enacted in 1992 and has been extended and modified in the years since. At the end of December 2020, Congress extended the PTC at 60% of the full credit amount, or $0.018 per kWh ($18 per megawatthour), for another year through December 31, 2021. In 2020, the credit was 60% of the full credit amount. Under the new PTC legislation, qualifying wind projects must begin construction by December 31, 2021.

Based on previous PTC legislation, wind projects that started construction in 2016 qualify for 100% of the full credit amount. After 2016, the percentage decreases by 20% per year from 2017 through 2019; facilities starting construction in 2019 qualify for 40% of the full credit amount.

Wind projects can receive the tax credit based on either the year the project begins operation or the year in which 5% of the total capital cost for the project has been spent and construction has begun. This 5% down method, known as safe harboring, allows wind developers to receive the PTC at a given year’s level, provided they complete construction no more than four calendar years after the calendar year that construction began.

To help address construction delays related to COVID-19, the Internal Revenue Service (IRS) issued guidance in May 2020 allowing projects that began construction in 2016 or 2017 an additional year for construction, giving them five years to come online instead of four.

U.S. wind capacity totaled 112 gigawatts (GW) as of November 2020, the latest data available in the U.S. Energy Information Administration’s (EIA) Electric Power Monthly. According to plans announced by project developers and grid operators and compiled in EIA’s Preliminary Monthly Electric Generator Inventory, another 10 GW was expected to be added in December, bringing the annual 2020 total to 21 GW. December’s planned additions will be confirmed as operational in EIA’s survey results released in late February.

If all planned additions are confirmed, 2020 will be a record year for wind installations, far surpassing the previous record of 13.2 GW added in 2012. The record level of annual capacity additions in 2020 was driven by developers scheduling project completion in time to qualify for the full-valued PTC from 2016. Wind capacity additions tend to be relatively high in years when the PTC is set to expire, such as in 2012 and 2020.

In 2021, project developers expect 12.2 GW of wind capacity to come online, of which they expect 7.2 GW (59%) to come online in December. December has historically been the month with the most wind capacity additions.

Source: EIA

New Research Shows That Corn Ethanol Emits 46% Less Greenhouse Gases Than Gasoline

2021-01-26T17:31:00.000-05:00

Research from Environmental Health & Engineering, Inc. (EH&E) shows that greenhouse gas (GHG) emissions for ethanol, a biofuel made from corn, are 46% lower than gasoline. Conventional wisdom based on a prior analysis done by EPA had pegged the difference to only 20%. EH&E's topical review of the latest science shows that this renewable biofuel is less carbon intensive and more climate-favorable than previously thought. "This research provides an up-to-date accounting of corn starch ethanol's GHG profile in comparison to that of gasoline refined from crude oil," says EH&E Chief Science Officer David MacIntosh. "The results of this research are timely for the scientific, public health, legislative, and business communities seeking to establish a net zero carbon economy while addressing related technological, political and economic challenges."

The research delivers a transparent, state-of-the-science assessment on life cycle analyses of corn starch ethanol in the U.S. EH&E researchers reached their conclusions after critically reviewing earlier life cycle analysis modeling and data, and consulting with more than two dozen experts from government, academia, and nonprofits. Their findings uncovered significant reductions in carbon intensity made possible by advances in farming technology, soil conservation practices, and production of animal feed as a by-product of making ethanol.

EH&E's assessment also shows that carbon emissions from converting prior land uses to corn farming make up only 3.9% of the biofuel's total GHG emissions--a much smaller amount than generally recognized. This finding stems directly from the latest models and data that consider both the economic value and productivity of land to estimate release of carbon when land is put into corn production. The research's findings suggest that substitution of conventional gas with corn ethanol could deliver a net carbon sink over a much shorter period than previously estimated.

Today, corn ethanol accounts for about 10% of liquid fuel sold at gasoline stations in the U.S. and has the potential to account for a greater share of liquid fuel for transportation. The findings provide much-needed data for decisions and policies on the future role of biofuels to address climate change as well as opportunities for continued reduction of carbon emissions across the life cycle of corn ethanol.

DuPont Launches New High Performance Yeasts for U.S. Ethanol Market

2021-01-26T13:59:00.000-05:00

DuPont Nutrition & Biosciences today announced the launch of the SYNERXIA® Gemstone Collection, the next advancement in high-performance yeasts. The new collection from the XCELIS® platform includes SYNERXIA® SAPPHIRE and SYNERXIA® RUBY – two innovative, high-yield yeasts designed for the unique needs of ethanol producers.

This marks the first time that DuPont has co-launched two high-yield yeasts. SYNERXIA® SAPPHIRE brings the most powerful combination of yield, robustness and enzyme expression in a yeast. It offers enhanced ethanol yield increase paired with revolutionary thermotolerance and infection robustness in fermentation and has been genetically engineered to withstand harsh stressors, while still finishing fermentation with ultra-low DP1.

SYNERXIA® SAPPHIRE has been engineered to provide a strong ethanol yield increase compared to conventional yeast and powers through fermentation finishing clean when ethanol producers encounter hot fermentations or severe infections. The product also expresses enough glucoamylase to displace up to 80 percent of the glucoamylase injected to fermentation. The yeast’s strong expression of the powerful glucoamylase offers reduced residual starch for many producers.

SYNERXIA® RUBY is the highest yielding yeast available today from the XCELIS® platform, delivering exceptional performance to producers via a patented PKL pathway and additional targeted genetic modifications. It produces less acetic acid compared to SYNERXIA® THRIVE GX and enables up to 65 percent glucoamylase reduction.

“The SYNERXIA® Gemstone Collection will give ethanol producers flexibility in responding to their individual plant needs while ensuring high ethanol yield and minimal waste,” said Hans Foerster, global marketing director, DuPont Biorefineries. “These new yeasts represent a new standard in high-yield yeasts on the market for ethanol producers and is just the latest in DuPont’s innovative approach to ethanol solutions through the XCELIS® platform.”

Iowa ethanol production fell 12 percent in 2020

2021-01-21T14:58:00.000-05:00

Compared to 2019, Iowa ethanol production fell 500 million gallons, or 12 percent, in 2020 as a result of dramatic demand destruction resulting from the COVID-19 pandemic, trade disputes around the globe, and illegal exemptions granted from the Renewable Fuel Standard (RFS). Producing only 3.7 billion gallons, 2020 was the second year in a row that Iowa ethanol production dropped following 2018’s record of 4.35 billion gallons.

Iowa Renewable Fuels Association Executive Director Monte Shaw called on state and federal leaders to take action to grow demand in 2021.

“While a pandemic is unpredictable and trade disputes are difficult to resolve, there are steps that our leaders can take today to begin to heal the demand destruction done to Iowa’s ethanol producers,” Shaw said. “President Biden can instruct his EPA to properly enforce the RFS as Congress intended. Congress has the opportunity to ensure that any legislation they consider to reduce emissions is technology-neutral and provides biofuels — the only tool in our toolbox ready to reduce carbon emissions on a grand scale today — a level playing field.

“We also believe that Midwestern states should not cede the fuel policy debate to the East and West coasts. We are seeing aggressive attempts on both coasts to ignore science and push low carbon biofuels out of the picture in favor of electric vehicle mandates. Here in Iowa, we will work with Governor Kim Reynolds and the legislature to continue to create growth opportunities for biofuels use.”

Source: Iowa Renewable Fuels Association

Iowa Biodiesel Production Up In 2020

2021-01-19T14:44:00.000-05:00

Although only nine of Iowa’s 11 biodiesel plants operated in 2020, they still managed to bump up production to 351 million gallons despite market challenges presented by the COVID-19 pandemic and Renewable Fuel Standard (RFS) exemptions. 2020 proved to be the 2nd highest year of biodiesel production in Iowa history behind 365 million gallons in 2018. Plenty of room for growth remains given Iowa’s over 400-million-gallon production capacity.

Iowa Renewable Fuels Association Executive Director Monte Shaw credited the bump in production to the reinstatement and long-term extension of the federal biodiesel blenders tax credit in late 2019, which provided a boost for higher biodiesel blends.

“The long-term extension of the biodiesel blenders tax credit gave Iowa biodiesel producers the market certainty to be successful even in a very uncertain year,” Shaw said. “COVID-19 did not hurt the diesel market the same way it gutted gasoline demand and, as result, production went up. Hopefully Iowa can take another step forward and utilize even more of our biodiesel capacity if there is proper implementation of the RFS in 2021.”

Iowa biodiesel production is expected to account for roughly 20 percent of total U.S. biodiesel production in 2020.

Soybean oil continued to be the feedstock of choice for the majority of Iowa biodiesel production, making up over 85 percent. Corn oil was second at just over eight percent. Animal fat, canola oil, and used cooking oil made up the rest of the feedstock used by Iowa biodiesel producers.

Source: Iowa Renewable Fuels Association

Keystone XL Commits To Become The First Pipeline To Be Fully Powered By Renewable Energy

2021-01-18T16:54:00.000-05:00

TC Energy Corporation announced a new sustainable energy initiative for the Keystone XL Project. The company will achieve net zero emissions across the project operations when it is placed into service in 2023 and has committed the operations will be fully powered by renewable energy sources no later than 2030. This announcement comes after an extensive period of study and analysis, and as part of the company’s ongoing commitment to sustainability, thoughtfully finding innovative ways to reduce greenhouse gas (GHG) emissions, while providing communities with reliable energy needed today.

“Since it was initially proposed more than 10 years ago, the Keystone XL project has evolved with the needs of North America, our communities and the environment,” said Richard Prior, President of Keystone XL. “We are confident that Keystone XL is not only the safest and most reliable method to transport oil to markets, but the initiatives announced today also ensures it will have the lowest environmental impact of an oil pipeline in terms of greenhouse gas emissions. Canada and the United States are among the most environmentally responsible countries in the world with some of the strictest standards for fossil fuel production.”

Following the successful implementation of this initiative, TC Energy expects to be among the top 10 corporate renewable sponsors in North America. Additionally, this is expected to eliminate more than three million tonnes of CO2 equivalent emitted every year in GHG emissions – the equivalent of approximately 650,000 cars taken off the road.

As part of this announcement, TC Energy is expected to spur an investment of over US$1.7 billion in communities along the Keystone XL footprint creating approximately 1.6 gigawatts of renewable electric capacity, and thousands of construction jobs in rural and Indigenous communities.

As part of its continued commitment to working with union labor in the U.S. and Canada, Keystone XL has also signed a Memorandum of Understanding (MOU) with North America’s Building Trades Unions (NABTU) to work together on the construction of TC Energy owned or sourced renewable energy projects.

“With our continued commitment to safety, creating family-sustaining, middle class jobs, NABTU is pleased to announce our agreement with TC Energy to ensure building trades labor constructs renewable energy projects along the entire Keystone XL route,” said NABTU President Sean McGarvey. “This will help to meet KXL’s commitment to achieving net zero emissions by 2023, create the power capacity required to operate the pipeline from renewable energy sources and create thousands of jobs between now and 2030 – jobs for the highly skilled women and men of the building trades.”

By implementing this initiative, Keystone XL will eliminate the impact of GHG emissions from the project’s operations. Additionally, Keystone XL will allow responsibly produced Canadian oil to be safely transported into the United States from many producers who have set their own net zero emissions goals. Canadian Oil Sands producers have cut emissions intensity by 21 percent in recent years and they are expected to fall another 27 percent by 2030.

Net zero emissions will be achieved when the pipeline is placed into service by purchasing renewable energy from electricity providers; if not available, Keystone XL will instead purchase renewable energy credits (REC) or carbon offsets. The company is committing that additional renewable sources along the pipeline’s route will be developed to power Keystone XL’s operations by 2030, phasing out any potential REC or carbon offsets and meeting power demand with new renewable electricity generation.

“At TC Energy, we are firmly committed to being part of the transition to the next generation of energy sources. Climate change is a serious issue and we have an important role to play in managing GHG emissions while balancing the need for safe, reliable and economic energy,” said François Poirier, President and Chief Executive Officer of TC Energy. “Today’s announcement is directly in line with our goal of doing what’s right for our communities and signifies Keystone XL’s commitment to strengthen efforts to create a sustainable future for all.”

Investment spurred in renewable power resources is expected to add to the more than $100 million of property taxes Keystone XL will generate annually for local governments along its route, supporting critical economic recovery and growth.

U.S. Patent Awarded and Exclusively Licensed to Aemetis Enabling Launch of “Carbon Zero” Production Plants

2021-01-16T17:44:00.000-05:00

Aemetis, Inc. announced recently that its exclusively licensed technology for the production of below zero carbon renewable fuel was awarded U.S. Patent No. 10907184 (to be published February 2, 2021), enabling the launch of Aemetis “Carbon Zero” production plants to commercialize the technology. Using patented technology exclusive to Aemetis for agricultural waste wood feedstock, the Carbon Zero plants are integrated with existing Aemetis production facilities to produce energy dense renewable fuels using renewable energy and below zero carbon intensity waste feedstocks.

The Aemetis Carbon Zero production plants are designed to convert below zero carbon feedstocks (waste wood and ag wastes) and renewable energy (solar, renewable natural gas, biogas) into energy dense liquid renewable fuels. Aemetis expects that such renewable fuels, when used in hybrid electric vehicles or other vehicle engines, will have a “below zero carbon” greenhouse gas footprint across the entire lifecycle of the fuel based on the Argonne National Laboratory’s GREET model, the pre-eminent science-based lifecycle analysis measurement tool.

“We are naming these projects ‘Carbon Zero’ to reflect our mission to reduce greenhouse gases. Wood is partially comprised of carbon dioxide (CO2) from the air. Agricultural waste wood has a below zero carbon intensity as a fuel by avoiding greenhouse gas emissions, since waste wood is usually burned in the field or breaks down into harmful methane emissions,” stated Eric McAfee, Chairman and CEO of Aemetis.

“By combining below zero carbon waste wood with zero carbon renewable energy obtained from solar, hydroelectric and biogas sources, Aemetis is transforming these sources of renewable energy into zero carbon renewable fuels that work with existing engines, as well as range extender generators used in electric cars or trucks as long-haul and local delivery vehicles adopt electric drivetrains to improve emissions, fuel efficiency and performance,” McAfee noted.

The first Aemetis Carbon Zero production plant — “Carbon Zero 1” — is planned for the 140-acre Riverbank Industrial Complex in Central California, a former Army ammunition production facility with 710,000 square feet of existing production buildings.

The Carbon Zero 1 plant will extract sugars from waste wood and then process the sugar into renewable fuel at the existing nearby Aemetis 65 million gallon per year plant near Modesto, California. This process is expected to reduce the amount of corn used in biofuel production, provide a 90% reduction in feedstock cost, and significantly increase the value of the biofuel by significantly reducing its carbon intensity. After an initial production demonstration phase, the Carbon Zero 1 plant is expected to ramp up capacity to produce 10% of the sugar feedstock used in the existing Aemetis 65 million gallon per year biofuel plant, with additional expansion in future phases.

The Carbon Zero 1 project and energy efficiency upgrades to the Aemetis plant include funding and other support from the USDA, the US Forest Service, the California Energy Commission, the California Department of Food and Agriculture, and PG&E.

Pacific Ethanol Completes Name Change to Alto Ingredients, Inc.

2021-01-13T14:58:00.002-05:00

Pacific Ethanol, Inc., a leading producer of specialty alcohols and essential ingredients, has changed its corporate name to Alto Ingredients, Inc., effective January 12, 2021. The company’s name change will be reflected on The Nasdaq Stock Market on January 14, 2021, and the company’s stock will begin trading under a new ticker symbol, ALTO, starting February 1, 2021.

CEO Mike Kandris said, “We have chosen our new corporate name and brand to represent our many high-quality products, which our customers incorporate into a range of vital finished goods that touch people’s everyday lives, from cleaning solutions to pharmaceuticals. We are capitalizing on our unique capability to manufacture high-grade alcohols for the food, beverage, health, and ingredients markets, and to process corn into high protein feed, pet food, and renewable fuel. As we move forward under our new Alto Ingredients brand, we remain committed to our goal of delivering the highest levels of integrity, purity, and quality to create value for our customers, partners, and shareholders.”

Gevo Announces Net-Zero 1 Project

2021-01-12T14:06:00.001-05:00

Gevo, Inc. announces the concept of Net-Zero Projects for the production of energy dense liquid hydrocarbons using renewable energy and Gevo’s proprietary technology. The concept of a Net-Zero Project is to convert renewable energy (photosynthetic, wind, renewable natural gas, biogas) from a variety of sources into energy dense liquid hydrocarbons, that when burned in traditional engines, have the potential to achieve net-zero greenhouse gas (GHG) emissions across the whole lifecycle of the liquid fuel: from the way carbon is captured from the atmosphere, processed to make liquid fuel products, and including the end use (burning as a fuel for cars, planes, trucks, and ships). Gevo announces that its project currently planned to be constructed at Lake Preston, South Dakota will be the first Net-Zero Project and will be named “Net-Zero 1.” Gevo expects that Net-Zero 1 would have the capability to produce liquid hydrocarbons that when burned have a “net-zero” greenhouse gas footprint.

Net-Zero 1 is currently expected to have a capacity of 45MGPY of hydrocarbons (for gasoline and jet fuel, based on current take-or-pay contracts), to produce more than 350,000,000 pounds per year of high protein feed products for use in the food chain, to produce enough renewable natural gas to be self-sufficient for the production process needs, and also to generate renewable electricity with a combined heat and power system. Net-Zero 1 is also expected to utilize wind energy.

Because of the low-carbon footprint feedstocks, the sustainable agricultural practices used to produce feedstock, and the use of renewable energy for the production processes, much of which is expected to be generated on-site, the hydrocarbon fuel products produced at Net-Zero 1 have the potential to achieve net-zero greenhouse gas emissions as measured across the whole of the lifecycle based on Argonne National Laboratory’s GREET model, the pre-eminent science-based lifecycle analysis model. The GREET model takes into account emissions and impacts "cradle to cradle" for renewable resource-based fuels including: inputs and generation of raw materials, agriculture practices, chemicals used in production processes of both feedstocks and products, energy sources used in production and transportation, and end fate of products, which for fuel products is usually burning to release energy.

The capital cost for Net-Zero 1 is projected to be on the order of $700M including the hydrocarbon production and related renewable energy infrastructure which includes anaerobic digestion to produce biogas to run our plant and generate some electricity on-site. Citigroup is assisting Gevo in raising the necessary capital for Net-Zero 1.

“This is not a new project but rather the first of the projects that we have been working on with Citigroup to get financed. We are naming our future projects Net-Zero to make clear the mission we are on to reduce GHG emissions. By using carbon from the air as our raw material source with its inherent low-carbon footprint, sustainable agriculture, a combination of renewable energy obtained from photosynthesis, wind, and biogas, we see that it is possible to transform renewable energy into liquid hydrocarbon fuels that work with combustion engines typical of cars, planes, and trucks with the added benefit that these fuels have a net-zero carbon footprint across the whole lifecycle. Think about it: it is conceivable to eliminate tailpipe emissions from cars, planes and trucks on a net GHG basis, while leveraging existing cars, planes, and trucks on a full 'cradle to cradle' GHG basis. Our Net-Zero 1 Project isn’t just about capturing renewable energy and carbon, and transforming it into liquid renewable energy; it’s also about generating enormous quantities of protein, and nutrition for the food chain. The high protein feed would be low-carbon footprint too—and we are happy to help farmers raise beef, pigs, chicken, and dairy in a way that lowers GHG emissions. We’ve got work to do to make it all happen,” said Dr. Patrick R. Gruber, Chief Executive Officer, Gevo. “We believe that there will be demand for additional Net-Zero projects in the future,” Gruber continued.

Green Plains and Ospraie Management Acquire Majority Stake in Fluid Quip Technologies

2021-01-11T17:35:00.000-05:00

Green Plains Inc. announced recently that it had acquired a majority interest in Fluid Quip Technologies (Fluid Quip) in a joint transaction led by Ospraie Management LLC (Ospraie). The acquisition capitalizes on the core strengths of the partners to develop and implement proven, value-added agriculture, food and industrial biotechnology systems, and to rapidly expand installation of Ultra-High Protein production across Green Plains’ facilities in parallel with offering these technologies to partnering biofuel facilities. The terms of the transaction were not disclosed. As part of the transaction, Ospraie acquired 550,000 warrants for Green Plains stock (each warrant equal to one share of stock) with a strike price of $22 per share.

“We believe the Fluid Quip IP portfolio has many game changing valuable technologies that the world needs right now,” said Dwight Anderson, managing partner of Ospraie. “Whether it’s their clean sugar patent suite that creates new, low cost carbohydrate sources for potential use in synthetic biology, food production, or industrial biochemical fermentation, or their patent library on creating high protein ingredients for pet food, aquaculture and other high value feed products, this all improves the environmental impact of feed solutions using inputs from farmers. Sustainable protein solutions are healthier, more efficient and less harmful to the global food system including, reducing the carbon footprint of production agriculture.”

“The partnership between Fluid Quip, Ospraie, and Green Plains will accelerate our path to our 2023 transformation from a commodity-processing business to a value-add agriculture, food technology and industrial biotechnology company focusing on creating diverse, non-cyclical, higher margin products while improving the environmental and carbon footprint of food and feed,” said Todd Becker, president and chief executive officer of Green Plains. “This partnership will help advance the installation of Ultra-High Protein technology across our platform, significantly increase our renewable corn oil production to participate in the growing low carbon fuel markets and the renewable diesel value chain, further drive reduction of our operating expenses and significantly expand our product offerings. This transaction is a vital step in our evolution as it enhances our intellectual property portfolio, deepens our engineering expertise and maximizes operational efficiencies through powerful technology capabilities, while achieving significant financial return opportunities for our shareholders.”

“This transaction offers a unique opportunity to bolster Fluid Quip’s growth trajectory and financial strength through Ospraie’s and Green Plains’ expanded footprint, industry experience and worldwide relationships,” said John Kwik, partner of Fluid Quip Technologies. “We will now be able to accelerate the development of revolutionary technologies that will drive transformational change to how agricultural products get used. With growing interest in the protein space, this partnership will leverage strong capabilities to help defend and protect the Fluid Quip IP portfolio from infringement. Finally, we will continue the implementation of our market leading flex-plant patented technologies, value added protein technologies and bolt-on processes that increase plant efficiencies for Fluid Quip’s large global customer base as well.”

“When you combine all of our partnerships into one innovation and financial engine with the rapid advancements that are already taking place, we believe the results will be truly revolutionary,” stated Becker. “Through this combination, we believe we are squarely positioned to deliver unmatched value as a leader in sustainable, nutritious products created through fermentation of renewable resources using a full suite of world-class technologies.”

Over the last two years, Green Plains has made strategic investments to significantly transform the business from an ethanol and commodities processor, to a leading technology focused, innovative producer of sustainable, value-added ingredient solutions. The partnership will retain all Fluid Quip employees.

St. Joseph Renewable Fuels To Build $400 Million Renewable Diesel Plant In Southern Illinois

2020-05-21T16:01:00.000-04:00

The City of Newton, Ill., Jasper County, and St. Joseph Renewable Fuels, LLC announced plans to build a $400 million renewable diesel plant in Southern Illinois. The 40-acre site in Newton, Ill., is within a federally designated Opportunity Zone, and is believed to be one of the largest projects proposed under the Tax Cuts and Jobs Act of 2017 that was designed to revive economically distressed communities in the United States.

The environmental benefits of the St. Joseph Renewable Fuels facility are supportive of efforts to promote renewable fuels, protect the environment and reduce CO2. Additionally, the plant will bring new sources of renewable fuels to metropolitan, rural and underserved communities. The facility will consume waste fats and greases from a region spanning 1,000 miles around Newton, which would otherwise be landfilled or emptied into sewer drains. The plant will convert the waste into 90 million gallons of diesel and naphtha fuel annually, as well as seven million gallons of technical grade glycerin.

“The fuel production technologies licensed to us and being deployed at the proposed facility in Newton promote sustainable practices,” said Geoffrey Hirson, CEO of St. Joseph Renewable Fuels, LLC. “The benefits realized transfer to both the local and global environment by producing renewable, reduced carbon fuels using carbon neutral or net-carbon negative production methods.”

Richard Podos, CEO of Lance Capital, said, “The St. Joe renewable diesel plant will drive economic growth in the city and county through $400 million of hard and soft construction costs, the revival of a shuttered site, and the production of ASTM-D975 renewable diesel. We will be advancing the project via tax incentives being offered by the city, and we also will be seeking state and federal support,” he added. Podos notes 100 permanent jobs will be created in the Newton community, plus 200 construction jobs for the duration of the two-year construction, as well as 300 trucking jobs for the State of Illinois once the plant is commissioned and operating.

Baseball Teams Knock It Out of the Park with Biodiesel

2018-10-06T12:20:00.000-04:00

Sports fans nationwide are celebrating sustainable practices this weekend as October 6^th marks Green Sports Day. The annual event recognizes the efforts that athletes, supporters, and organizations make to reduce their environmental footprint. Baseball fans are already seeing a difference with cleaner air thanks to biodiesel.

Ballparks throughout the country are recycling used cooking oil into clean burning biodiesel. This advanced biofuel reduces carbon emissions by 80 percent, helping the crowds breathe easier.

“When I order food at a ballpark I can see all the grease in the concession stand,” said National Biodiesel Board Sustainability Director Don Scott. “It’s awesome to know that this nasty garbage is being made into a clean fuel.”

The Kansas City Royals, Milwaukee Brewers, and the San Diego Padres are only a handful of the stadiums participating in this green endeavor. During the Royal’s recent championship season, the stadium totaled more than 61 tons of food waste, recycling more than 4,500 gallons of oil. The Brewers home stadium, Miller Park, recycled 6,347 gallons of cooking oil last year alone.

Embracing sustainable practices, these stadiums are focusing on the fans by creating a clean fuel that helps their vehicles as well as their health. Choosing biodiesel really is a home run for baseball teams.

The Green Sports Alliance leverages the cultural and market influence of sports to promote healthy, sustainable communities where people live and play. The Alliance inspires professional sports leagues, college conferences, sports governing bodies, colleges, teams, venues, their partners and millions of fans to embrace renewable energy, healthy food, recycling, water efficiency, safer chemicals and other environmentally preferable practices. Alliance members represent nearly 600 sports teams and venues from 15 sports leagues in 14 countries.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.

Jeff Broin Resumes Role As POET CEO

2015-11-14T21:22:00.000-05:00

Jeff Broin, founder of POET, has resumed his role as the company’s CEO after stepping into the Executive Chairman role for the last three and one-half years.

“A few years ago, I wanted to slow down a bit, be less involved in the affairs of POET and have time to do other things and spend more time with my family. In the last few years I have been able to work on broader industry and ag issues, get our new foundation – Seeds of Change – up and running and support several third-world causes. However, I also found myself continuing to work regularly on company issues. The fact is, my passion and love for this company, our industry, agriculture and the people I work with is just too great. I guess you could say my heart has always been in this company. We have so many great opportunities in front of us to change the world, and I think I can be of most value moving forward by serving as CEO,” Broin said.

Jeff Lautt has been CEO and will continue to manage the day-to-day operations of POET as President and Chief Operating Officer. Broin stressed the success of POET under his leadership.

“Jeff [Lautt] has done an outstanding job as CEO of POET. He’s been an effective and gracious leader for our team members and investors. In fact, 2014 was a record year at POET, and our cellulosic venture – Project LIBERTY – is advancing toward full operations. I could not have asked for a better person to take on this role, and POET will continue to benefit from his direction as President,” Broin said.

“No one is more passionate about this company and industry than Jeff Broin. This business is in his blood,” Lautt said. “He built a world leader, and it’s no surprise that he would want to continue that work. I’m honored to have been entrusted as CEO of POET over the last few years, and I look forward to continuing my leadership as President and COO.”

After early small-scale ethanol production on the Broin family farm, POET got its start in 1987 with the purchase of a 1 million gallon-per-year ethanol plant in Scotland, S.D. From there, the company has grown to be one of the largest ethanol producers in the world, with 1.7 billion gallons of production today from 28 plants in seven states.

With a focus on research and market development, POET has pioneered new efficiencies in biofuels production as well as development and improvement of co-products to make ethanol the most competitive, renewable, domestic fuel in the market today. POET, along with the Dutch life sciences company DSM, is working to license cellulosic ethanol technology to further grow the world’s supply of sustainable transportation fuel.

Green Plains Completes Acquisition Of Texas Ethanol Facility

2015-11-12T23:10:00.000-05:00

Green Plains Inc. announced today that it has completed the acquisition of an ethanol facility located in Hereford, Texas. The Hereford facility is the company's fourteenth ethanol plant, bringing Green Plains' total production capacity to more than 1.2 billion gallons per year.

The company expects to offer the facility's transportation and storage assets to its master limited partnership, Green Plains Partners LP.

Green Plains to Purchase Texas Ethanol Facility From Murphy USA

2015-11-03T00:25:00.001-05:00

Green Plains Inc. and Murphy USA Inc. announced today that they have signed a definitive agreement regarding the purchase by Green Plains of Murphy USA's ethanol production facility located in Hereford, Texas. Under the terms of the agreement, Green Plains will acquire Hereford Renewable Energy, LLC for approximately $93.8 million, subject to customary closing adjustments. The transaction value includes $78.5 million for the ethanol production facility with the balance for working capital. The transaction is expected to close this month subject to customary closing conditions and regulatory approvals.

The facility is a Lurgi-designed, ICM-modified ethanol plant with approximately 100 million gallons per year of production capacity, a corn oil extraction system and other related assets.

"The Hereford facility has many strategic and financial advantages over other destination plants because of its location, leading to both export and domestic market opportunities for ethanol and distillers grains," commented Todd Becker, president and chief executive officer of Green Plains. "Because it is located near the largest concentration of cattle in the world, with over a million head of cattle fed within a 50-mile radius, the plant can produce a low carbon intensity fuel which is typically sold for a premium to ethanol produced at most other plants."

Andrew Clyde, president and CEO of Murphy USA, added, "The Hereford facility has become a high-performing facility and we want to recognize the commitment of the Hereford employees who executed the two-year turnaround plan and established a track record of consistent, strong performance. Their commitment created the opportunity for us to attract a prominent, long-term focused buyer such as Green Plains who can build on the progress demonstrated to date at Hereford. This transaction reinforces Murphy USA's strategic intent of selling our non-core assets in a manner that captures the most value for our shareholders."

The facility's production capacity is complemented by a shuttle unload facility that can unload 40,000 bushels of corn per hour, a double-loop track that holds two unit trains at a time and a grain handling system with over 4.8 million bushels of storage. The plant also has 4.5 million gallons of ethanol storage capacity.

"We intend to utilize this asset and its shuttle train unload capability to serve the local market with corn and distillers grains produced in the Midwest to further improve the overall economics of the facility," stated Becker. "The value of this acquisition goes well beyond just producing ethanol."

The company will offer the facility's transportation and storage assets to its master limited partnership, Green Plains Partners LP.

Green Plains Acquires Hopewell, Virginia Ethanol Facility From Future Fuels LLP

2015-10-27T15:47:00.000-04:00

Green Plains Inc. announced recently that it has acquired an ethanol production facility in Hopewell, Virginia from Future Fuels LLP. Operating at full capacity, the facility's dry mill ethanol plant will increase the company's annual production capacity by approximately 60 million gallons to nearly 1.1 billion gallons per year.

"We are confident in our ability to significantly improve the plant's production economics by applying our operational and commercial expertise," said Todd Becker, president and chief executive officer. "We plan to make several capital investments before restarting the plant to increase its operational efficiency and production volume. In addition, we anticipate using the site to transload distillers grains that are produced locally and at our other plants located on the Norfolk Southern rail line into containers destined for export markets to further enhance the property's profitability."

Production is expected to resume by the end of the year and corn oil processing is expected to be operational during the second quarter of 2016. When the plant is fully operational, Green Plains expects to offer the Hopewell plant's transportation and storage assets to its master limited partnership, Green Plains Partners LP.

RFA Applauds Fiat Chrysler Approval of E15

2015-08-17T19:53:00.000-04:00

The Renewable Fuels Association (RFA) is applauding Fiat Chrysler Automobiles’ (FCA) decision to approve the use of E15 (15 percent ethanol and 85 percent gasoline) in its model year (MY) 2016 Chrysler/Fiat, Jeep, Dodge and Ram vehicles. The decision means that FCA joins General Motors and Ford (the “Detroit Three”) in covering E15 in its warranty statements; GM started covering E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles. More than 12 percent of the vehicles sold so far in the United States in 2015 have been FCA vehicles. RFA President and CEO Bob Dinneen, who specifically called on Chrysler to approve E15 during his State of the Industry address at this year’s National Ethanol Conference, called the decision “a seminal moment that augurs well for the continued expansion of E15.” “FCA’s decision to join GM and Ford provides clear evidence that the tide on E15 has turned,” Dinneen said. “The automaker’s decision not to embrace E15 had been a major point of concern and tension for the last three years. FCA customers will be afforded a benefit that will likely lower their weekly motor fuel bill: the freedom to choose what fuel to put into their vehicles.” - See more at: http://www.ethanolrfa.org/news/entry/rfa-applauds-fiat-chrysler-approval-of-e15/#sthash.REx0EzIZ.dpuf

United Airlines Invests in Fulcrum BioEnergy

2015-07-02T12:35:00.000-04:00

United Airlines recently announced an historic $30 million equity investment in U.S.-based alternative fuels developer Fulcrum BioEnergy, Inc., a pioneer in the development and commercialization of converting municipal solid waste into low-cost sustainable aviation biofuel. It is also the single largest investment by a U.S. airline in alternative fuels and sets United apart in the aviation industry in the advancement of aviation biofuels and carbon emissions reductions. In addition to the equity investment, United and Fulcrum have entered into an agreement that contemplates the joint development of up to five projects located near United's hubs expected to have the potential to produce up to 180 million gallons of fuel per year.

"We know alternative fuels is an emerging industry that is vital to the future of aviation and this is just one of our initiatives to help make these fuels saleable and scalable," said United's Executive Vice President and General Counsel Brett Hart. "Investing in alternative fuels is not only good for the environment, it's a smart move for our company as biofuels have the potential to hedge against future oil price volatility and carbon regulations."

United has also negotiated a long-term supply agreement with Fulcrum and, subject to availability, will have the opportunity to purchase at least 90 million gallons of sustainable aviation fuel a year for a minimum of 10 years at a cost that is competitive with conventional jet fuel. This alternative fuel will be a drop-in fuel that meets all of the airline's technical requirements and specifications, and will power the aircraft in the same way as conventional jet fuel. Fulcrum expects its first alternative fuels plant to begin commercial operation in 2017.

Stockholders Approve Merger of Pacific Ethanol and Aventine

2015-06-11T21:10:00.003-04:00

Pacific Ethanol, Inc. and Aventine Renewable Energy Holdings, Inc. announced their respective stockholders approved the proposed merger of the two companies at separate meetings held today.

Completion of the merger is expected to be effective July 1, 2015, subject to the satisfaction of all conditions to closing.

Under the terms of the merger agreement, Aventine stockholders will receive 1.25 shares of Pacific Ethanol common stock for each share of Aventine common stock they own at closing. Upon closing of the transaction, Aventine stockholders are expected to own approximately 42% and current Pacific Ethanol stockholders are expected to own approximately 58% of the combined company.

Pacific Ethanol Begins Production of Corn Oil at Madera Plant

2015-05-07T22:55:00.000-04:00

Pacific Ethanol, Inc. has begun commercial production of corn oil utilizing Valicor's proprietary VFRAC corn oil recovery system at its Madera, California plant.

Neil Koehler, the company's president and CEO, stated: "We are pleased to be producing corn oil at our Madera plant, which further diversifies our plant revenue streams and significantly improves operating income. In addition, plans are underway for corn oil production to begin at our Boardman, Oregon plant in the second quarter, at which time all four of Pacific Ethanol's ethanol production facilities will be producing and benefitting from this high-value co-product."

Pacific Ethanol Stockton Plant to Install Cogeneration Technology

2015-01-13T11:28:00.002-05:00

Pacific Ethanol, Inc. announced its agreement with Dresser-Rand to install a 3.5 megawatt cogeneration system with gradual oxidizer at its Stockton, CA plant for approximately $12 million. The cogeneration system will displace purchased electricity by using Ener-Core, Inc.'s innovative gradual oxidizer technology to convert waste gas from ethanol production and natural gas into electricity and steam. With this technology, the plant will have among the lowest air emissions in the ethanol industry.

Neil Koehler, the company's president and CEO, said: "The Stockton cogeneration system will replace most of the electricity we currently purchase from the grid and will reduce our energy costs by an estimated three to four million dollars per year. This system is one of the most advanced cogeneration systems on the market and will more efficiently deliver steam and electricity to the plant while lowering emissions. Rather than destroying waste gases, we will reuse them as a source of process energy, reducing costs and improving profitability."

Under the terms of the agreement, Dresser-Rand will supply two 1.75 megawatt gas turbine generators with heat recovery steam generators and two gradual oxidizers that are manufactured by Ener-Core. The combined system will replace the current use of thermal oxidizers. Pacific Ethanol expects the cogeneration system to be operational by the second-quarter of 2016.

Pacific Ethanol To Merge With Aventine Renewable Energy Holdings

2014-12-31T21:24:00.000-05:00

Pacific Ethanol, Inc. and Aventine Renewable Energy Holdings, Inc. announced they have entered into a definitive merger agreement under which Pacific Ethanol will acquire all of Aventine's outstanding shares in a stock-for-stock merger transaction.

"With this transaction, Pacific Ethanol strengthens its unique production and marketing advantages by diversifying into two additional discrete markets and connecting its Western markets with Aventine's Midwest and Eastern markets for low-carbon renewable fuels," said Neil Koehler, CEO of Pacific Ethanol. "The merger offers a rare opportunity to combine the experience, market presence and diversification that Aventine brings with our industry leadership in Western US markets. It will complement our existing business as we balance assets across new regional markets, expand our footprint for the production and marketing of low-carbon renewable fuels, diversify our technology and increase our mix of co-products."

"This transaction will more than double our annual ethanol production capacity, and it will establish Pacific Ethanol as the fifth largest producer and marketer of ethanol in the United States. Once closed, we expect the transaction to be immediately accretive to earnings with expected operational synergies and the expansion of our ethanol and co-product marketing business. We are impressed with the both the quality of Aventine's assets and the seasoned employees operating the business, and we look forward to integrating our teams," concluded Koehler.

"In late 2012, the new Aventine management team defined a very aggressive turnaround strategy," stated Mark Beemer, CEO of Aventine. "Our mission has been accomplished with our plants achieving five new production records; over $30 million invested in the Pekin facilities, including coal-to-natural gas conversion; and additional capital investments in our Nebraska facilities. In 2014, Aventine achieved record earnings and successfully restarted its 155 million gallons of ethanol production in Nebraska. We look forward to making a successful transition of the business to Pacific Ethanol and bringing the combined strength of the two companies to the market."

Under the terms of the merger agreement, Pacific Ethanol expects to issue approximately 17.75 million shares of its common stock upon closing in exchange for all of the issued and outstanding shares of Aventine's common stock. Upon completion, existing Pacific Ethanol shareholders will own approximately 58% of the issued and outstanding shares of common stock of the combined entity, and Aventine will nominate two representatives to be named later to Pacific Ethanol's board of directors, increasing the total board count to nine.

Aventine will be operated as Pacific Ethanol's wholly-owned subsidiary. Aventine currently has $135 million in term loan debt.

Aventine's ethanol production assets include its 100 million gallon per year wet mill and 60 million gallon per year dry mill located in Pekin, Illinois, and its 110 million gallon per year and 45 million gallon per year dry mills in Aurora, Nebraska. Combined with Pacific Ethanol's current ethanol production capacity of 200 million gallons per year, the combined company will have a total ethanol production capacity of 515 million gallons per year, and together with Pacific Ethanol's marketing business will sell over 800 million gallons of ethanol annually.

The closing of the transaction, which is expected to occur during the second quarter of 2015, is subject to customary and other closing conditions and regulatory approvals, as well as the approval of Pacific Ethanol's and Aventine's shareholders.