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BBI Fuel Ethanol Workshop (FEW) Photo Slide Show

Statement of Bob Dinneen on Launch of Anti-Biofuels GMA-Led Coalition - “It’s time for some truth in advertising from the world’s largest food processors.  Instead of smearing American farmers and the only fuel that is backing out foreign oil, why aren’t GMA and its allies pointing to the skyrocketing price of oil as the main cause of increasing food prices and the main reason American’s have less to spend. “American biofuels are keeping billions of dollars here at home instead of adding to the coffers of OPEC and other foreign oil producers.  Biofuels are helping to keep gasoline prices lower than they otherwise would be and are reinvigorating America's rural communities. “The repeated claim that ethanol is responsible for food price increases continues to mislead and misdirect because the real factors driving up world food prices are skyrocketing oil prices, rising demand in China and elsewhere, droughts and adverse weather, wild commodity speculation, and the decline in the value of the dollar.” Below is a backgrounder on the causes of rising food prices as seen from the point of view of economists, oil experts...more

The United States House passed the Food and Energy Security Act of 2007(H.R. 2419), commonly known as the Farm Bill, which is a $290 billion bill, with higher/increased subsidies for farmers and food stamps for the poor amid rising grocery prices while sprinkling in pet projects that lawmakers can take home to voters this election year. The 318-106 vote for the five-year bill gave supporters 28 more than they need to override a promised veto from President Bush. President Bush is on record stating that the bill is too expensive and generous to farmers, who are now enjoying record earnings. On Thursday, the United States Senate passed the bill as well, also with a veto proof margin of 81-15. The House passed the bill, 318-106, on Wednesday. To override a veto, each chamber must call a new vote and pass the bill by a two-thirds majority.  The President has threatened to veto the measure, and he will get his chance as it is now on his desk but it appears that an override is eminent. President Bush feels that bill subsidizes multimillionaire farmers while Americans face higher food prices. The White House says the bill has $10 billion in hidden spending and rather than embrace reform, increases subsidy rates for wheat and soybeans...more

VeraSun Energy Corp. (NYSE: VSE) and US BioEnergy Corp. (NASDAQ: USBE) today announced they have entered into a definitive merger agreement, which has been unanimously approved by the board of directors of each company. The merger is expected to close during the first quarter of 2008, pending shareholder approval, anti-trust regulatory clearance and the completion of other customary conditions...more

Range Fuels will break ground on the nation’s first commercial cellulosic ethanol plant Tuesday, November 6, 2007...more

POET announced three new general managers to the team. Mark Borer has joined POET as the General Manager for POET Biorefining - Leipsic, Dave Hudak has joined POET as General Manager for POET Biorefining - Alexandria and Dave Gloer has joined the company as General Manager for POET Biorefining - Caro...more

Outlining a plan to elevate Kentucky’s economy, Dr. Pearse Lyons, president and founder of Kentucky-based Alltech, will speak at various locations throughout the state as part of a tour to promote innovation in agriculture. The theme for the tour is 'Vision 2010: Fueling the Future of Rural Kentucky.'...more

PetroSun, Incorporated announced today that the Company has formed PetroSun BioFuels Refining to participate in a joint venture that will construct and operate a biofuels refinery in Arizona...more

ConocoPhillips and Archer Daniels Midland Company(ADM) announced that they have agreed to collaborate on the development of renewable transportation fuels from biomass. The alliance will research and seek to commercialize two components of a next-generation biofuel production process..more

Bunge Limited today announced that Tim Gallagher, Executive Vice President, Bunge North America and Todd Bastean, Vice President & General Manager, Bunge North America Biofuels, will address the Citigroup "Ethanol on the Cob II" biofuels conference in New York City on Tuesday, October 2, 2007...more

North American Bioproducts Corporation (NABC), provider of
fermentation products and technology to the ethanol industry, announces their third bi-annual Ethanol Short Course. In a continuing effort to develop, educate and train both new and experienced industry colleagues, NABC will hold the Ethanol Short Course on February 11th -15th, 2008 in Schaumburg, IL. The Renaissance Hotel and Convention Center will host the five day event...more

Hawkeye Energy Holdings, LLC, one of the largest producers of ethanol in the U.S., is pleased to announce that Martin A. Lyons has joined Hawkeye as Chief Commercial Officer, effective today. Marty has most recently served as Senior Vice President in charge of Archer Daniel Midland’s ethanol, corn processing and sweeteners businesses. Marty has over twenty-eight years of sales, marketing, strategic planning, and regulatory management experience and helped pioneer the fuel ethanol additive business in the energy industry...more

President Bush Announces Resignation of Secretary of Agriculture Mike Johanns Rose Garden - 9:27 A.M. EDT. September 20, 2007 - THE PRESIDENT: Good morning. Mike Johanns has informed me that he plans to return home to Nebraska, which means that his service as Secretary of Agriculture must come to an end. Mike has been an outstanding member of my Cabinet. I knew he would be when I asked him to become the Secretary of Agriculture. I've known him for a long time. I've admired the fact that he is not only a decent person and an honest person, but he's a person who can get some things done...more

Corn production is forecast at a record 13.3 billion bushels, up 254 million from last month, because of higher yields.  The forecast yield of 155.8 bushels per acre would be the second highest ever.  Sorghum yields are also forecast at a record 73.9 bushels per acre. Sorghum production is forecast at 495 million bushels.  Ethanol production forecast was lowered for both 2006/07 and in 2007/08, based on current capacity and reported production.  Exports were raised this month to offset lower grains production in other parts of the world.  Prices for feed grains remain strong, supported by record wheat and strong soybean prices...more Feed Outlook, September 14, 2007

VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that Mark Dickey has joined the company as Vice President and Assistant General Counsel. All together, Dickey brings more than 20 years of legal experience, including 14 years in private practice...more

US BioEnergy Corporation (NASDAQ:USBE), a leading producer of ethanol in the United States, today announced that it has been selected by NASDAQ as one of 17 companies that will be featured in its new advertising campaign, “NASDAQ and the Companies that Move Life Forward,” that profiles NASDAQ-listed companies and how each of them improve the way we work and live every day...more 

VeraSun Energy Corporation (NYSE: VSE), one of the nation’s largest ethanol producers, will hold a VE85™ pump tour promotion, Friday, Sept. 21, at the Freedom Valu Center on East College Drive in Marshall, Minn. VeraSun will sell its branded VE85™, a blend of 85 percent ethanol and 15 percent gasoline, for 85 cents per gallon beginning at 11:30 a.m. CDT. The station is located at 304 East College Drive...more

Today in Portland, Indiana, POET hosted a grand opening ceremony for their 21st ethanol production facility. With the additional 65 million gallons of production coming online, POET becomes the largest producer of ethanol in the world. Portland is the first POET plant in the state of Indiana, with two additional plants currently under construction...more

The USDA now forecasts the 2007 U.S. corn crop at 13.308 billion bushels, 254 million (1.9 percent) larger than the August forecast and 2.773 billion (26.3 percent) larger than the 2006 crop. The larger crop forecast reflects the expectation of a U.S. average yield of 155.8 bushels. That forecast is three bushels above the August forecast and 6.7 bushels above the 2006 average, but 4.6 bushels below the record yield of 2004...more

CME Group, the world's largest and most diverse exchange, today announced the listing of options on Ethanol futures, tools for customers to better manage risk in the energy industry, scheduled to begin trading electronically on e-cbot® October 5 and then on the CME Globex® platform in January...more

Lallemand is proud to announce the appointment of Bill Nankervis as its new General Manager of its Ethanol Technology business unit. Bill comes to Ethanol Technology from Lallemand’s Anchor Yeast subsidiary in South Africa where he was Director of their Bakery Specialties (bakers yeast and baking & milling enzymes) business...more

U.S. Sen. Dick Lugar spoke today at the opening of the POET ethanol plant in (Portland) Jay County and will address the opening tomorrow at the Central Indiana Ethanol Facility in (Marion) Grant County. “Biofuels offer the dual opportunity for an economic revitalization of rural America and a solution to a serious national security problem,” said Lugar, who has been a leading advocate for the use of biofuels to decrease our strategic dependence on foreign oil...more

The New York Mercantile Exchange, Inc.(NYMEX) today announced that it will launch its new alternative energy equity index futures contract on CME Globex and NYMEX ClearPort, beginning on September 30 for trade date October 1, 2007. This contract was previously scheduled to launch on August 20th, but was postponed...more

Archer Daniels Midland announced appointments in the Company's Commercial and Production group which is responsible for ADM's origination, merchandising, processing and marketing functions. John Rice, executive vice president, Commercial and Production, said, "These appointments advance our long-term and incremental business goals. I am confident that these individuals will provide leadership -- on both a personal and organizational level -- that will ensure ADM's continued success."...more

Directors from Florida International University’s (FIU) Energy and Business Forum along with senior engineers and public policy experts from General Motors (GM) will be at FIU on September 12, 2007 to announce the arrival of E85 ethanol in South Florida. Currently E85 ethanol is not available in South Florida, Wednesday's announcement will disclose when and where E85 ethanol will be available for the first time in the area...more

08.06.07 - GOSHEN, Calififornia - Cilion, a new biofuels company, today announced the appointment of Mark L. Noetzel as its Chief Executive Officer and member of the Board of Directors. He was previously a Group Vice President of BP plc based in London. In 26 years with BP and Amoco, Mr. Noetzel has led multi-billion dollar businesses in the fuels and chemical industry in the US, Europe and Asia. In 2003, he was appointed Group Vice President with responsibility for BP’s $65 billion revenue retail operations and fuels transport and wholesaling in the US, Europe and Asia...more

08.05.07 - Upon receiving news of the passing of Jeff Fox, Vice President of Legal and Government Affairs for POET, POET issued the following statement from CEO Jeff Broin...more

NYMEX issues new margin spread credits for their RBOB contracts vs the new Ethanol contract. THe Ethanol contract started trading July 8, 2007. In short they will allow customers to save 80pct of the margin they normally post by clearing both contracts with NYMEX...more

08.07.07 - Midwest Grain Products Ingredients to announce fiscal Q4 2007 results on August 16, 2007. Interested persons may listen to the conference call via telephone by dialing...more

08.02.07 - Pacific Ethanol, Inc. will release its fiscal year 2007 second quarter results, August 8, 2007..more

08.02.07 - US BioEnergy to Announce Second Quarter Results...more

09.02.07 - The Anderson Reports Record Income, with EPS of $1.40 for Second Quarter. Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth...more

08.02.07 - VeraSun Energy Corporation Reports Second Quarter 2007 Financial Results...more

08.02.07 - Aventine Posts Strong Q2 2007 Operating Results...more

08.02.07 - Archer Daniels Midland Reports Record Annual Results...more

08.02.07 - VeraSun Energy Corporation Reports Second Quarter 2007 Financial Results - VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced its financial results for the three months ended June 30, 2007. Earnings were $15.1 million or $0.19 per diluted share. EBITDA was $33.0 million or 19.5 percent of revenues.

"VeraSun had a strong second quarter relative to first quarter of 2007, but down from the exceptional margin period of 2006," said Donald L. Endres, Chairman, Chief Executive Officer and President of VeraSun. "During the past quarter we started up our Charles City, Iowa facility, transitioned ethanol marketing in-house, and continued to operate our biorefineries above nameplate capacity. Ethanol prices remained steady for the quarter and corn prices began to moderate as we had expected.

"In our first quarter of managing the ethanol sales and distribution, we achieved solid performance and consistently shipped unit trains from all facilities with on-time deliveries and favorable railcar turn times," said Endres. "Our unit train strategy and customer service focus are being well received by our customers and these are points of positive differentiation for VeraSun."

The Company also announced plans last week to acquire three ethanol plants with a combined expected annual production capacity of 330 million gallons per year (MMGY) from ASAlliances Biofuels, LLC. The acquisition, which provides scale as well as geographic and operational diversity, is expected to close in 30-45 days and is subject to usual closing conditions. After the acquisition, VeraSun expects to have an annual production capacity of approximately one billion gallons by the end of 2008.

"We continue to focus on being an efficient, low-cost ethanol producer, while executing on our long-term strategy for growth," said Endres. "The ASAlliances transaction is a unique opportunity to acquire immediate production and revenue at a cost similar to that of building and gives us sister facilities that fit well into our current fleet and operations model."

Earlier this month, VeraSun worked in collaboration with General Motors to bring the first E85 fueling location to our nation's Capital and announced a strategic initiative with Enterprise Rent-A-Car to expand the use of E85.

Click here for addditional detail and financial information...more

07.17.07 - Bateman Litwin buys Delta-T, gains ethanol technology edge 

Acquisition of U.S. technology designer positions Dutch company to take global leadership role in new-generation biorefinery production.

Amsterdam, The Netherlands, and Williamsburg, Virginia, USA, July 17, 2007 – Shuki Raz, Chief Executive Officer of Bateman Litwin, announced a definitive agreement under which his company will acquire privately held Delta-T Corporation, a leading US-based bioethanol technology provider, with a fast growing engineering, procurement and construction (“EPC”) division for a total consideration of US $45 million in cash and 11.8 million new ordinary shares in BatemanLitwin, subject to adjustment (the Acquisition). Completion of the Acquisition is condistional upon the Acquisition having been approved by the shareholers of Bateman Litwin at an Extraordianry General Meeting on August 21, 2007.
 
For over two decades, Delta-T has led the fuel ethanol industry with research-driven breakthroughs as well as continuous technological improvement.  Rob Swain, who will become CEO of Delta-T, now Bateman Litwin’s largest business unit, explains that the Delta-T advances “have made ethanol production more practical and investment more profitable.  Our biorefinery design producing fuel ethanol runs on much less energy, takes far less water, reduces total operating costs significantly, and uses a unique water recycling system resulting in zero process wastewater.”

Swain says that Bateman Litwin “brings the greater resources and expertise necessary to accelerate our technological lead in major fuel-ethanol markets around the world.”   He stresses how the agreement “enhances the value we bring to customers by offering bankable, design-build solutions with a company that is world-class in delivering EPC projects on time and within budget.”

Swain adds that all commitments, contracts, deals, and alliances with customers, EPC partners, and business partners will remain intact.  The merger will not change but enhance and supplement Delta-T’s existing business model and partnerships.

Bibb Swain, founder and chairman of Delta-T, will guide the consolidated technology group to accelerate the development and roll-out of new technologies. “The production of biofuels from biomass is not a passing fad,” he says.  “It will be with us for as long as we live on this planet.  Though we are rapidly approaching the end of the corn-to-ethanol boom, we are still working hard on new technologies to retrofit older, less-efficient plants to keep them competitive in the years ahead. We will be building new generation corn-based biorefineries many years into the future, but not at anything close to the pace we’ve seen recently.  Ethanol from biomass is just around the corner, and that will open an exciting new era in biofuels. We’ve only scratched the surface of the possibilities that lay ahead.”

According to Shuki Raz, “The vision of Delta-T will now be ours: Delta-T ethanol plants will be self-energy producers, meaning they will need no outside energy for processing from grain to ethanol.  Our systems and skills on the EPC side, which built Bateman Litwin the past 30 years, will add efficiencies to the jobs at hand as well as offer Delta-T technology to more projects worldwide. We plan to be the first to introduce an economically feasible and socially responsible biomass-to-ethanol production plant to the world.  This is our future in about five years.”

Roy Franklin, Chairman of Bateman Litwin, observes that “bringing together these two companies benefits not just our shareholders but also the industry at large.  Our resources, combined with Delta-T’s talent, will rapidly reduce the environmental footprint required to produce fuel ethanol.  That means a cleaner renewable fuel for everyone.”

Bateman Litwin is listed on the Alternate Investment Market (AIM) of the London Stock Exchange under the symbol: BNLN.L.

Acquisition highlights

• The Acquisition accelerates several key areas of Bateman Litwin’s strategy:
• combines the Group’s  EPC and process engineering skills with one of the leading proprietary technologies in bioethanol production
• enhances Bateman Litwin’s growing presence in environmental related technology and renewable energy markets
• typical contract size of US$120-250 million plays to Bateman Litwin’s strengths
• Delta-T’s backlog, as of 30 June 2007, amounted to c.US$500 million providing a substantial addition to Bateman Litwin’s existing backlog
• Provides immediate, sizeable entry into the over US$10 billion US ethanol market up to 2013 (new plants)
• Creates a substantial platform for bioethanol market expansion into Europe, the Far East, CIS, and Australia
• Expected to enhance earnings per share in the first full financial year of ownership

About Bateman Litwin N.V.

Bateman Litwin N.V.  is a mid-sized  Energy EPC (engineering procurement and construction) contractor and a proprietary technology provider in the Renewable Energy and the Phosphate and Solvent Extraction dependent industries. It is increasingly furthering its reputation by combining its world class EPC skills with its leading technology expertise. To find out more visit Bateman Litwin at: www.bateman-litwin.com

About Delta-T

Delta-T is a technology provider and constructor of biofuel processing plants. Delta-T was founded in 1984 by Mr. Bibb Swain, the current CEO. Headquartered in Williamsburg, Virginia, USA and it currently employs over 200 people. The company has pioneered ethanol development from an original focus on fuel ethanol to biofuels, refined alcohols and biorefinery advancements. With technology as its core EPT competency, Delta-T’s business model has been extended to deliver technology products through EPC design and build partnerships. 

Delta-T has established a well-defined business model and has a dominant presence in the rapidly growing US and Canadian ethanol. Delta-T’s international focus is primarily on emerging fuel ethanol markets in China, India, Africa, CSI, and Australia.  They recently launched Delta-T -Europe where they bundled resources from project development to build greener bio-businesses across Europe in record time.

Delta-T is known for its breakthrough as a designer of high-tech biorefineries producing ultra-pure and ultra-dry alcohols and the world’s most environmentally-friendly ethanol plant without sacrificing profitability to the owner. Every Delta-T biorefinery producing fuel ethanol built has the reputation of never releasing any process wastewater–a design feat unmatched in the industry.  Current operating Delta-T plants consume about 2.8 gallons of fresh water per gallon of undenatured ethanol produced and its co-products which is 30-40% less than competing technologies. Delta-T’s latest technology lowers this number to below 1.5 gallons in corn–fed plants. Outside energy use per gallon has also been cut a third–while producing a higher-quality and higher-protein livestock feed back into the world’s food supply.
www.deltatcorp.com

For more information, please contact: Thomas Corle, Communications Director in US at 717 626-0557 or email: tcorle@deltatcorp.com

07.10.07 - NYMEX issues new margin spread credits for their RBOB contracts vs the new Ethanol contract. THe Ethanol contract started trading July 8, 2007. In short they will allow customers to save 80pct of the margin they normally post by clearing both contracts with NYMEX...more

07.10.07 - VeraSun Energy Corporation (NYSE: VSE), one of the nation’s largest ethanol producers, today announced the opening of the first E85 retail fueling location in Washington, D.C. The opening was the result of an ongoing collaborative effort between VeraSun and General Motors to expand the availability and consumer awareness of E85.

VeraSun’s branded VE85™, a blend of 85 percent ethanol and 15 percent gasoline is now available at the Georgetown Chevron, located at 2450 Wisconsin Ave. N.W., and in Arlington, Va., at the Navy Exchange station near the Pentagon. The addition of two retail fueling locations increases the number of stations selling VE85™ to more than 90 in nine states and the District of Columbia.

“This partnership exemplifies the efforts being made to improve the availability of E85 in our nation,” said Don Endres, VeraSun’s Chairman and CEO. “E85 has been available throughout the Midwest for years, and many of us have used it almost exclusively to fuel our vehicles. We are pleased to have worked collaboratively with our partners to bring VE85™ to the D.C. metro area so that drivers in our nation’s capital may experience this clean, high-octane product which strengthens our energy independence and helps our environment by reducing both greenhouse gas and tailpipe emissions.”

Today’s announcement marks the fifth collaboration VeraSun and GM have entered with a third-party retailer since the companies began working together to expand availability and increase the awareness of VE85™. The first initiative, launched in May 2005 with pilot stations in Sioux Falls, S.D., has expanded to include locations in Chicago, Minneapolis-St. Paul, and Pittsburgh.

“At GM, we believe that renewable fuels like E85 give us the greatest near-term potential to actually reduce gasoline consumption and vehicle emissions,” said Elizabeth Lowery, GM vice president of environment, energy and safety policy. "That's why GM is committed to working with our partners at VeraSun Energy to increase the availability of VE85™ to consumers."

Enterprise Rent-A-Car joined VeraSun and GM on this initiative by announcing that it is designating its premier rental location in Washington, D.C., as an official “E85/FlexFuel branch.” Owning the world’s largest fleet of FlexFuel Vehicles, with more than 41,000 cars and trucks, Enterprise is committing to fueling 50 GM FlexFuel vehicles from its location at 1029 Vermont Ave. N.W., at the Georgetown Chevron. The vehicles will also be stocked with materials about VE85™ and directions to the fueling location.

“It’s a privilege for us to work with VeraSun Energy to make it easier for our customers to make sustainable choices,” said Matthew G. Darrah, Enterprise Rent-A-Car senior vice president of North American operations. “We hope the commitment we’ve made today sends a strong signal that, as alternative fuels like VE85™ become commercially viable, we’ll not only be first in line to use them, we will encourage our customers to use them, as well.”

“An important part of the energy bill the Senate just passed is a title that promotes the production, distribution and use of clean, renewable, made-in-America transportation fuels, like E85,” said Sen. Jeff Bingaman, chairman of the Senate Energy Committee. “For our nation to become more energy self-reliant, we have to start using transportation fuels other than imported oil. I appreciate VeraSun’s initiative in opening the first E85 retail fueling station in our nation’s capital, and I hope this venture will pave the way for greater use of biofuels throughout the Mid-Atlantic.”

Owned by Mid-Atlantic Petroleum Properties, the Georgetown Chevron location marks a significant accomplishment for the fuel retailer in offering E85 at the first of its 23 company- operated locations in the Washington, D.C. metro area. On Friday, June 29, the Georgetown Chevron location will sell E85 for 185 minutes to FlexFuel vehicle owners for 85 cents per gallon. The promotion will last from 11 a.m. to 2:05 p.m. E.D.T.

“Mid-Atlantic is proud to be the first retail chain in Washington D.C. to offer its customers E85 and, in particular, VeraSun’s branded E85, VE85™”, said Carlos Horcasitas, Chairman and CEO of Mid-Atlantic. “This is a very important step in educating our customers on the benefits of E85 and offering them the choice of a renewable, home-grown product that promotes a cleaner environment.”

Representatives from the District, the U.S. Department of Energy, and the U.S. Department of Agriculture were also on hand to make the announcement.

VeraSun is committed to developing markets for renewable fuels and helping consumers realize a future that includes renewable energy. Consumers interested in learning more about VE85™, and where to find VE85™ stations, can visit www.VE85.com

07.06.07 - KAG Ethanol Logistics today announced that it has joined efforts with LB Transport and Iowa Northern Railway Company, entering into an investment alliance with Manly Terminal, LLC, of Manly, Iowa, to streamline the nation's already constrained ethanol marketing and distribution process.   Through this alliance, KAG Ethanol Logistics has strategically partnered with truck, rail and storage stakeholders to seamlessly bring ethanol from production point to final destination.  Manly Terminal (www.manlyterminal.com), a first of its kind facility, will feature over 20 million gallons of liquid storage capacity on a unique 100-acre reload facility that is strategically located within the largest growth area of ethanol production in North America. 

Dennis Nash, President and Chief Executive Officer of Kenan Advantage Group stated, "By bringing all of the key players of the ethanol transportation industry together, we are able to provide a truly unique service to ethanol customers throughout the country.  Our ability to package these services and manage the delivery process from beginning to end, will allow us to help solve many of the challenges facing this growing and exciting industry.  At KAG, we have always taken great pride in being in the forefront of innovation and technology.  This alliance with Manly Terminal, LLC puts us dead center in the ethanol logistics arena - and that's exactly where we want to be."

As part of the Manly alliance, locally operated, LB Transport will join with KAG to provide the trucking arm that delivers ethanol from the production facilities to the Manly Terminal.   Once the product has been brought to the terminal, it will be distributed across the country through rail interline agreements secured by the Iowa Northern Railway Company.  Iowa Northern's line is adjacent to the Manly Terminal and connects with the entire North American rail network.  Iowa Northern is offering direct tariff access to all major rail carriers.  With multiple rail connections, the Manly Terminal can leverage the various combinations of freight routes to insure that ethanol customers are getting the lowest possible rate, to the best possible markets.

Unlike petroleum products such as oil and natural gas, ethanol cannot be distributed through pipelines due to its chemical makeup and attraction to water.  As a result, ethanol moves from production to market by utilizing truck, rail and barge transportation services along with transload/storage facilities.  The key to effectively manage the logistics of the ethanol industry is to coordinate this unique movement of product.

KAG Ethanol Logistics along with its partners in the Manly Terminal LLC have combined the synergies of multiple transportation services to enhance this infrastructure.  As a starting point, the development or a common origin ethanol storage point began on October 27, 2006 with the ground breaking of a truck and rail transload, storage and trading terminal located in north-central Iowa. 

"Today there are over twenty-five ethanol plants in operation or under construction with over two billion gallons of production that are less than one hundred miles from Manly, Iowa," stated Lee Kiewiet, President of Manly Terminal, LLC.  "It is estimated that more than half of all ethanol production in the U.S. will be located within 300 miles of the Manly Terminal by end of 2009, making this location the ideal common origin point for the country's ethanol marketing and distribution," continued Mr. Kiewiet.  Manly Terminal also provides sufficient storage that allows ethanol producers and marketers to consolidate volumes to capitalize on price fluctuations, and to trade and arbitrage ethanol, all contributing to improved margins. Other benefits will include rail car trip leasing, unit train economics and faster turn time on deployed rail assets. 

"Visualize Manly Terminal as the ‘hub' from which ‘spokes' will run in every direction to supply the country's long-term ethanol needs," said Daniel Sabin, President of Iowa Northern Railway Company.  "Our rail system of ‘unit trains', consisting of 65 or more tank cars, is a faster, more efficient and economical way to ship ethanol than utilizing a few tank cars at a time, continued Mr. Sabin.  We want to remove every possible obstacle to fluid transportation of ethanol and related products."

The federal government has mandated that by 2012, 7.5 billion gallons of ethanol must be blended with gasoline.  The passage of the Energy Policy Act of 2005 and the continued commitment to ethanol by the Bush Administration and Congress are resulting in an unprecedented period of growth for the U.S. ethanol industry.  With that growth come unique challenges such as the ability to quickly build the infrastructure needed to effectively and efficiently bring the product to market.

Finally, the overall logistics from ethanol production point to the final marketplace will be coordinated and managed by KAG Ethanol Logistics.  The concept will provide the simplicity of a single invoice from producer to consumption point.  By combining the various services of the partner companies, KAG Ethanol Logistics can provide the most cost effective, door-to-door delivery solution to the ethanol industry.  KAG Ethanol Logistics is a division of KAG Logistics, a subsidiary of Kenan Advantage Group, Inc. 

KAG Logistics (www.kaglogistics.com) is the nation's first, fully-automated, end-to-end logistics services committed to the petroleum and related industries.  The company focuses on optimal execution in the distribution supply chain for its customers.  It utilizes latest technologies managed by highly trained personnel, fleet resources and advanced processes to provide premier value-added services.

07.05.07 - Brazilain Ethanol Prices are 35 percent lower than in 2006

Between June 25th and 29th, the CEPEA/ESALQ Index for anhydrous ethanol (Sao Paulo state) averaged 0.66221 real or 0.34138 dollar per liter (excluding taxes), dropping 1.04 percent in Real over the previous week. For the hydrated, the decrease was of 0.6 percent in Real, averaging 0.57646 real or 0.29717 dollar per liter (excluding taxes). These values are around 35 percent lower (in Real) than those practiced in the same period of last year (in nominal terms) - of 1.2705 real per liter for the hydrated and of 0.87685 real per liter for the anhydrous.

The pressure keeps coming from the higher supply, as the 2007/08 crop moves on. At the end of June, few trades were settled, since most part of distributors were enough supplied. Mills, in turn, were not willing to trade, focused on accomplishing export contracts.

In June, the Index for anhydrous dropped 23.6 percent against May, averaging 0.67507 real or 0.34977 dollar per liter (excluding taxes) in the period. For the hydrated, the Index decreased 14.9 percent in the same period, at 0.58786 real or 0.30459 dollar per liter (excluding taxes).

According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), until the beginning of June, the ethanol production totaled 2.968 billion liters in the Center-Southern region, an increase of 9.35 percent over the same period of the last crop.

Source CEPEA/ESALQ

07.02.07 - Beginning on Sunday evening, July 8 (for trade date Monday, July 9, 2007), the NYMEX will list two new cash-settled ethanol swap contracts on NYMEX ClearPort®...more

05.31.07 - ST. PAUL, Minnesota and MARION, South Dakota (May 31, 2007) - US BioEnergy Corporation (NASDAQ: USBE), one of the largest producers of ethanol in the United States, and Millennium Ethanol, LLC today announced that US BioEnergy has agreed to acquire Millennium.  Millennium is currently constructing a plant near Marion, South Dakota and is expected to begin production in the first quarter of 2008.  The plant is expected to produce approximately 100 million gallons of ethanol per year (mgy) and 320,000 tons of dried distillers grains annually.  With this acquisition, US BioEnergy will have 8 plants in 6 states with expected total production of 700 mgy by the end of 2008.  Gordon Ommen, CEO of US BioEnergy Corporation, stated, “We are very proud to have the opportunity to partner with Millennium Ethanol, Fremar Farmers Cooperative and its members and to carry forward their vision and hard work through the completion and operation of the Marion plant.  Millennium is the fifth plant we have added to the US Bio family through acquisition and we are humbled by the confidence they have shown in our company.  It is partnerships such as these that are the backbone of US Bio.  We are also excited about having Millennium’s approximately 900 shareholders, many of whom are farmers, become shareholders of US Bio. This fits well with our existing shareholder base, including CHS and their 325,000 farmer owners....full story

05.10.07 - St. Paul, MN--US BioEnergy Corporation, a leading ethanol producer in the United States, announced May 12 that its Ord, NE ethanol plant has begun production.

The company broke ground on the 50 million gallon per year (mmgy) ethanol plant in December 2005 and completed construction ahead of the normal 20-month schedule.

US Bio Ord, located in central Nebraska and adjacent to the Nebraska Central Railroad, is expected to produce approximately 50 million gallons of ethanol and 275,000 tons of modified wet distillers grains per year from the 15 to 18 million bushels of corn provided by local farmers.

The plant has created approximately 40 new jobs in the city of Ord.

Gordon Ommen, CEO of US BioEnergy, stated, “The opening of our fourth ethanol plant demonstrates the quality and effectiveness of the US BioEnergy team, which continues to execute our strategy ahead of schedule.

"We remain focused on building and acquiring ethanol plants in the Midwest. By doing so, we believe we will deliver on our goals of revitalizing Midwestern communities, promoting energy independence, and delivering value to our shareholders."

“We are thrilled to have the Ord plant up and running, and proud to have US BioEnergy as a community member. This plant is a key part of our community, providing employment, and economic opportunity to its residents,” said Gaylord Boilesen, chairman of the US Bio Ord local board.

US Bio Ord is the third plant that US BioEnergy has brought on line since September, and the fourth that the company currently operates.

For more information, call 651-355-8340

Excerpt From February 20, 2007 Newsletter - Renewable Fuels Association(RFA) President Bob Dinneen addressed over 2000 attendees at the RFA National Ethanol Conference annual meeting at the Marriott Starr Pass in Tucson, Arizona. In his State of the Industry Address, Bob addressed an enthusiastic crowd. Several key excerpts are listed below

            “My friends, from this podium one year ago, I stood before you and proudly proclaimed, ethanol has arrived. I may never have been more right. 2006  was a seminal year in the ethanol industry’s history, notable as much for the growth in public awareness as for the phenomenal growth in production. In April, for the first time ever, a president of the United States addressed a gathering of the Renewable Fuels Association and noted “renewable energy is one of the great stories of recent years, and it is going to be a bigger story in years to come.”

            In May, the RFA was invited to open the trading day at NASDAQ, reflecting the growing recognition on Wall Street that ethanol and biodiesel represent growth markets for the future. By June, ethanol had successfully replaced MTBE in virtually every gallon of reformulated gasoline where it was still being used. In October, for the first time, a president and 3 cabinet secretaries gathered on the same stage to promote a vision for renewable fuels few could have imagined even a year ago. At that same event, the president of the American Petroleum Institute reflected upon the oil industry's newfound appreciation for ethanol’s octane and gasoline blending quality, and noted refiners could now see a day when ethanol was blended in every gallon of gasoline sold in the country.  In November, the 3 major U.S.automakers met with the president of the United States and pledged to increase their FFV production to 50% of their vehicle sales by 2012.

            Before the end of the year, ethanol blended gasoline accounted for 46% of the nation’s motor fuel, with sales literally from coast to coast and border to border. Throughout 2006, 15 new ethanol biorefineries opened, construction began on no fewer than 50 new biorefineries, and the industry set new all­time records for ethanol production, sales and capacity.

            The U.S.ethanol industry produced an astounding 4.9 billion gallons, sold more than 5.5 billion gallons, and with new biorefineries opened and expansions completed, closed the year with more than 5.4  billion gallons of capacity. But we’re not done yet. As I stand here today, there are 78 plants under construction–steel in the ground, dirt being moved welders welding. These plants will add another 6 billion gallons of capacity within 18 months – 3 billion gallons this year! As the industry grows, it is expanding beyond the traditional grain belt, with plants currently under construction in Washington, Texas, New York and right here in Arizona.

            And as the industry has grown, so too has the industry’s footprint on the economy. In 2006, the ethanol industry: Increased gross output by $41 billion; Supported the creation of 163,000 jobs, including 20,000 in the manufacturing sector; Put an additional $6.7 billion into the pockets of American consumers; and, Added $2.7 billion in new tax revenue for the federal government and $2.2 billion for state and local treasuries.

            From such numbers, it is clear the nation’s investment in domestic renewable energy is paying off. Indeed, as 2007 dawns upon us, the U.S. ethanol industry can now envision a whole new horizon, one filled with promise, but also daunting in its scope. The president’s 20 in 10 proposal, unveiled during this year’s State of the Union Speech, suggests as much as 35 billion gallons of alternative fuel will be needed to displace 20% of our nation’s petroleum consumption by 2017. The Governors’ Ethanol Coalition is promoting an initiative requiring 60 billion gallons of ethanol by 2030. Senator Dick Lugar has introduced legislation mandating 100 billion gallons of ethanol by 2030. And countless other initiatives have been discussed or introduced, each built upon the premise that this nation’s energy, economic and national security demands significantly greater production of domestic renewable fuels.”

            The full text of the speech is available on the Press Release page on www.ethanolmarket.com

05.01.07 - Aventine Renewable Energy Holdings, Inc. (NYSE: AVR), a
leading producer, marketer and end-to-end provider of clean renewable energy, today announced that its net income for the first quarter of 2007 increased more than 22% over the same period a year ago. Ron Miller, Aventine’s President and Chief Executive Officer said, “We are pleased that we were able to achieve both increased earnings and improved operating performance in a difficult and volatile commodity environment. Net income increased 22% year over year. Ethanol production in the quarter was a record 48.9 million gallons, up from 35.3 million gallons in Q4’06 and 36.7
million gallons in Q1’06. As a result of the increase in production from our new Pekin dry mill, our own equity production became a greater proportion of the total ethanol gallons sourced, which helped improve gross margins. More normal operations and the increase in production capacity resulted in conversion costs declining to $0.55 per gallon in the quarter from $0.65 in
Q4’06. Our corn costs during Q1’07 averaged $3.58 per bushel, significantly higher than our Q4’06 cost of $2.90 per bushel, but well below the Chicago Board of Trade (“CBOT”) average of $4.03 per bushel in the first quarter of 2007. Also, we successfully issued $300 million in fixed-rate, unsecured notes, as well as established a new $200 million secured revolving credit facility. These financings were completed on favorable terms. With the proceeds from the note offering, cash on hand and cash generated from operations, we can comfortably complete the first 226 million gallons of our expansion plans.”
For full press release...click here

03.23.07 - Ethanol Supply rises 11 percent and demand, 47.5 percent

The 2006/07 Brazilian sugarcane crop, which has already finished, brings new figures to the market in terms of supply, demand and prices, especially in the Sao Paulo state.

More mills offered the product. According to the Unica (Sugar Cane Industry Union), the volume of cane processed enlarged 10.1 percent in the Center- Southerner region. It was processed 371 million tons, producing 25.8 million tons of sugar and 15.9 billion liter of ethanol. The increase of sugar supply was of 17 percent and of ethanol, 11.2 percent over the previous crop.

Regarding the domestic demand, the hydrated ethanol sells increased expressively in 2006. According to the National Petroleum Agency (ANP), in December, distributors traded 45.7 percent more ethanol in the Sao Paulo state in relation to Dec/05.

Ethanol prices, even with short variations during the crop (from April/06 to February/07), were higher than those practiced on the previous crop. For the hydrated, in Sao Paulo state, the average was of 0.83428 real per liter (excluding taxes) until February, value 0.62 percent superior to the previous crop. For anhydrous, the price is 3.5 percent higher, at 0.93538 real per liter (excluding taxes).

These numbers confirm the positive outlook of the sugarcane market during the last crop, bringing news expectancies to the beginning of the next process (the 2007/08 crop), scheduled to the end of this month in some mills.

Last week, the CEPEA/ESALQ Index of anhydrous upped 0.99 percent, averaging 0.84568 real or 0.39591 dollar per liter (excluding taxes). The hydrated valuated 0.84 percent, to 0.81791 real or 0.38344 dollar per liter (excluding taxes). Source - CEPEA/ESALQ.

02.28.07 - The price trend is definitely up, as the United States national ethanol rack price average increased again last week, for the fourth week in a row, moving up 4.72 cpg on the way up from 215.16 to 219.19 cpg. The average for the day last Friday was nearly 3.0 cpg higher than the weekly average, coming in at 222.79 cpg, indicating further play in the market. The Ethanol Market National Reference Rack in Des Moines, Iowa, rebounded as well,  after plummeting 27.0 cpg in late January and early February.  The Des Moines ethanol rack average increased 6.55 cpg, on the way up from 209.25 to 215.88 cpg.  As with the National average, the rack average last Friday in Des Moines was slightly higher than the weekly average, coming in at 217.91 cpg, which is nearly 2.0 cpg higher than the weekly average.  Out of 82 reporting racks, only 2 reported decreases last week.  Marshall and Mankato Minnesota led the way with increases of over 14 cpg.
                The Chicago Board of Trade (CBOT) fuel ethanol February contract continued to firm last week, closing at 220 cpg yesterday.   The CBOT charts for open interest, monthly volume, average daily volume and deliveries have been updated, and are on page seven (7).  The Chicago spot market traded in the same band late last week, trading up in the mid to upper 210’s late last week.   New York Harbor prices crept up into the low to mid 230 cpg range, pushed by corn prices, pulled by demand and supported by surprisingly strong gasoline prices.  NYMEX RBOB is in contango, with the near month closing at 177 cpg yesterday, and the following six months all closing in the low to upper 180 cpg range.  With CBOT fuel ethanol at 220, the spread to NYMEX RBOB is currently 43 cpg.  Spot New York Harbor RBOB moved up all of last week, closing just over 178 cpg last Friday, and topping 180 cpg yesterday.  180 cpg RBOB, plus the 51 cpg blend incentive, equals 231, which is within the current trading range for fuel ethanol in New York Harbor.  West Coast prompt moved up slightly, trading in the low to mid 230 cpg range.  
               
American Commercial Barge Lines has opened traffic to the Illinois River, and they, and other barge companies, now have barges on the way up to Peoria.  Temperatures are rising, as well as the river level, which will help break up the ice.  Although, a rising river will slow traffic down a bit.  As traffic gets back to normal, fuel ethanol conditions in Houston should improve.  Due to logistical displacement, spot fuel ethanol in Houston traded in the mid to upper 240 cpg range late last week, as buyers scrambled for truck and railcar supply.
                Brazilian anhydrous prices dropped over 2.0% last week, trading in the 151 to 152 cpg range.  With duty and freight, landed costs into New York are in the 225 to 230 cpg range.  The math is quite tight with the combination of the Brazilian FOB Santos price, and the New York Harbor spot prices.  We have added two new charts this week, one with a short term view of FOB Santos anhydrous prices, and another chart with a longer term view going back to 2000. 

 For a full weekly review of fuel ethanol market, please subscribe to the Ethanol Market Weekly News and Market Report, the Premier ethanol industry Newsletter, Web News and Consulting Source.

02.07.07 - Gordon Ommen (center), CEO and Chairman of US BioEnergy (USBE) rang the NASDAQ remote closing bell along with Bruce Aust (far right), Executive Vice President of NASDAQ to celebrate the Grand Opening of the Albert City, IA Ethanol Facility, which began operations in November 2006 and the Company's recent initial public offering on the NASDAQ Stock Market. Pictures below, and more details on Press Release page.

01.17.07 - The Medicine Valley Economic Development Corporation is excited to announce that it has teamed with Wolverine Ethanol, LLC of Troy, Michigan to build an ethanol plant near Moorefield, NE in Frontier County. The facility will be called Hi-Line Ethanol, a name that has historic significance for the area. Medicine Valley obtained options on some property for the purpose of building a renewable fuels production facility and worked with the Nebraska Public Power District to get the site “ethanol ready.” 
“This is an exciting development opportunity for Frontier County,” said Curtis Heapy, President of the Medicine Valley Economic Development Corporation. “Medicine Valley has worked very closely with NPPD and the Nebraska Department of Economic Development to position Frontier County to attract value-added industries. At the same time, we set our standards very high.  Our Board wanted a company that had a vision and plan for long-term sustainability, a proven track record, and a desire to work with local companies. We feel very strongly that Wolverine Ethanol exceeds those standards, and we are very excited that they will be part of Hi-Line Ethanol. The positive economic impact to the area will be significant and widespread,” he said.

The site near Moorefield, NE consists of nearly 200 acres on Highway 23 approximately 10 miles west of Curtis, NE. “We are excited about the opportunity to be part of Hi-Line Ethanol,” said Tom Randazzo, CEO of Wolverine Ethanol. “The Frontier County location has all of the features and benefits that we believe are important for the successful operation of Hi-Line Ethanol,” he said. Wolverine is also developing the Alcorn Energy facility near Holdrege, NE in Phelps County.
An air permit application for the construction of the 100 million gallon per year, dry mill plant, to be filed with the Nebraska Department of Environmental Quality, will be the first order of business for Hi-Line Ethanol. It is projected that the plant will consume over 35 million bushels of corn per year. Investment of nearly $200 million is anticipated and, when operational, the plant will have 35 to 45 employees.

Construction of the plant can start when an air permit is issued by the NDEQ. The NDEQ review process is expected to take 4 to 6 months to complete.  The plant is expected to be operational 16 to 20 months after construction begins.

01.15.07 - US BioEnergy Corporation (Nasdaq:USBE) announced today that its Albert City and Central City ethanol plants began operations in late November and have transitioned to commercial production. With these plants in commercial production, US BioEnergy is the largest pure-play ethanol producer in the United States. US Bio Albert City is a new facility located near Albert City, Iowa and US Bio Platte Valley is a newly expanded facility in Central City, Nebraska. Each facility is expected to produce approximately 100 million gallons of ethanol per year, 320,000 tons of distillers grains per year and employ about 45 people. “This is an important milestone for our company and to the revitalization of the American heartland,” said Gordon Ommen, CEO and chairman. “It’s the spirit and dedication of the American farmer that’s making this possible.”

01.12.07 – US BioEnergy Corporation (Nasdaq:USBE), the largest pure-play ethanol producer in the United States, announced today it began site preparation work near Janesville, Minnesota. “We are excited to become a part of the community as we begin dirt work on the site,” said Dan Seckora, project manager. “It’s a great feeling to be part of a project that will bring benefits to the local community, as well as the nation.” The facility is expected to produce approximately 100 million gallons of ethanol per year, 320,000 tons of distillers grains per year and employ about 45 people. Historically, the construction cycle for its ethanol plants has been about 20 months. Fagen, Inc. will provide design, engineering and construction services for the project.“This is further evidence of our ability to execute our growth strategy and our industry leadership position,” said Gordon Ommen, CEO and chairman. “We believe in the power of the American farmer and the economic revitalization ethanol production is bringing to the Midwest.”

01.10.07 - The United States national ethanol rack price average decreased last week, moving down slightly from 245.01 to 243.66 cpg.  The average for the day last Friday was fractionally lower than last weeks average, coming in at 242.46 cpg.  The Ethanol Market National Reference rack in Des Moines, Iowa, was more active than the national average, dropping 6.67 cpg, on the way down from 252.18 cpg down to 245.49 cpg.  The rack average last Friday in Des Moines was lower than the weekly average, coming in at 241.20 cpg.
            The Chicago Board of Trade (CBOT) ethanol February contract fell off two weeks ago, moving down from 236.3 cpg to 229.5 cpg, which was down approximately 7 cpg week to week.  The trend continued into this week, with the contract falling off most of last week, and then closing today, down 8 cpg, to 216.9 cpg for the February futures contract.  March dropped down to 205 cpg and April fell under 200.0 to 197.5 cpg.  With spot gasoline down in the 145 cpg range, something had to give.  Blending economics has been a problem the past month, and has pushed some discretionary gallons out of the marketplace. The February NYMEX crude oil  contract traded in the mid $56 range today, before closing down again, at $56.09 per barrel, which kept the NYMEX gasoline contract in place at 146.96 cpg.
         As the rack markets indicated, spot prices eased a bit last week, especially in Chicago, pulled down by a combination of unfavorable blending economics, declining gasoline markets, and the arbitrage window slightly open with imports impacting New York.  Chicago supplies more discretionary markets than both coasts, and many of these blenders have backed out of the market, which in turn will eventually impact the sell side of the equation.  Chicago traded in the low to upper 240’s cpg, but there is indication, as with all markets, that forward deals will have to close the gap to encourage the discretionary gallons back into the marketplace.   Although, the West Coast prices remained steady, trading in the upper 250’s cpg range.  New York Harbor material was somewhat steady for very prompt material, in the mid to upper 250’s cpg range.  
            The industrial ethanol market 15 cpg January 1, 2007, price increase remains solid.  The demand in this segment is quite strong, especially for this time of the year.  Additionally, inventory levels remain tight and most producers/marketers are operating with less than historical inventory levels, even “uncomfortable” levels.
            The new congress did not take long to address the biofuels industry and energy security in the United States.  United States Senators Tom Harkin (Democrat-Iowa) and Richard Lugar (Republican-Indiana) introduced the Biofuels Security Act of 2007 last week.  Both Senators have been long time proponents of energy independence and biofuel expansion.  The bill sets new benchmarks for the Renewable Fuels Standard (RFS), reaching 30 billion gallons per year by 2020 and 60 billion gallons per year by 2030.  Also, the bill would require that all United States  automobiles be flexible fuel vehicles (FFV’s) by 2017.  FFV’s in the United States are capable of running on gasoline or any blend of anhydrous ethanol up to 85 percent, which is E85.  Additionally, the bill would require that oil companies will have to offer E85 at 50% of their gas stations by 2017.  Key ethanol industry groups support the proposed legislation, including the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA).  On the other side of the fence, the National Refiners Petroleum Association (NPRA) opposes the legislation.

01.09.07 - Minneapolis, MN -– New Cargill subsidiary Emerald Renewable Energy LLC Jan. 9 announced plans to develop four 100 million-gallon-per-year ethanol plants in the Midwestern United States. The newly formed company is considering several potential sites in the Cornbelt.

Emerald Renewable Energy is a privately held, limited liability company formed by Cargill to develop and invest in renewable energy projects in the United States. Cargill will provide the initial development capital for the projects. Emerald Renewable Energy will contract with Cargill for services to support the facilities, including corn supply, natural gas, price risk management and the marketing of ethanol and distillers grains.

"Emerald Renewable Energy will have access to Cargill's world-class expertise in trading, sourcing corn, plant construction and operations, risk management and bulk commodity transportation,” noted Scott Portnoy, Cargill corporate vice president with responsibility for its biofuels and bioproducts businesses. Emerald Renewable Energy has reached agreement with a globally recognized EPC contractor to design and construct their facilities. This contractor has initiated engineering and permitting efforts and will participate with Cargill in the design and construction of all four plants.

To finance the debt capital for the construction of the plants, Emerald has nominated BNP Paribas as lead arranger and Santander Investment and Standard Chartered as senior co-lead arrangers. Each plant will use nearly 40 million bushels of corn annually and produce 100 million gallons of ethanol and over 300,000 tons of dry distillers grains for animal feed each year. The plant sites being considered include greenfield locations as well as co-locations with Cargill grain elevators and other utility infrastructure providers.

The plants are expected to create about 40 jobs per location.

01.05.07 - Lexington, Kentucky - Ethanol Market reports that the United States fuel ethanol market production totaled 10,308,000 barrels in October 2006, and the ending stocks for October totaled 9,814,000 barrels.

Ethanol Market Managing Director, Jeff DeReamer said "The United States fuel ethanol industry met the very real and difficult logistical challenges in 2006, and is prepared to support Energy Security and existing/new Renewable Fuels Standards (RFS) legislation in 2007, and beyond. The 2006 statistics confirm that the industry has paved a solid path forward and is firmly committed to reducing the United States dependence on imported crude oil and gasoline."
Additionally, Mr. DeReamer stated "The new congress has already displayed an strong conviction for the expansion of exisiting Energy Security legislation, and introduced several new bills on the first day of the new Congress. However, the industry, and Washington, both need to temper the Food for Fuel debate with an even more aggressive cellulosic research and development, and competitive commercial application of the technology to support future biofuels expansion in the United States."

On a gallon basis, the October 2006 United States fuel ethanol production totaled 432.936 million gallons, with a production average for the month of 13.986 million gallons per day. The October monthly production total is a new record for the United States fuel ethanol industry, and the daily production average of 13.986 million gallons ties the previous record, which was established in September 2006.  The October 2006 monthly production total of 432.936 million gallons is 82.866 (24%) higher than the October 2005 production total of 350.070 million gallons.  Also, the October 2006 daily production average of 13.986 million gallons is 2.688 (24%) million gallons higher than the October 2005 daily production average of 11.298 million gallons per day.

The October 2006 United States fuel ethanol production total of 432.936 million gallons annualizes at 5.195 billion gallons.  Ethanol Market estimates the actual production total for 2006 will be approximately 4.903 billion gallons.

The October 2006 United States fuel ethanol ending stocks totaled 412.188 million gallons, which is 3.654 million gallons higher than the September 2006 total of 408.534 million gallons, and 188.580 million gallons higher than the September 2005 ending stocks total of 223.608 million gallons.  The October 2006 ending stocks represents approximately one month of demand.  The significantly higher stocks compared to one year ago is directly related to the higher production and increased fuel ethanol demand in the United States.

There are currently 109 ethanol biorefineries operating in the United States, with a combined annual capacity of over 5.2 billion gallons per year.  There are over 70 new refineries underway, and at least 7 expansions, with an aggregate capacity of over 5.8 billion gallons of annual capacity.  

For additional information, please visit Ethanol Market www.ethanolmarket.com and subscribe to the Ethanol Market Web News, Newsletter and Consulting Services.  Ethanol Market is a unique industry news source, newsletter and consulting business.  We are a private independent consulting firm offering unbiased, clear, concise and accurate market information covering Fuel Ethanol, Industrial Ethanol, Beverage Ethanol, Corn/Grains, MTBE, Gasoline/Motor Fuels, Natural Gas and National/State Legislative News.

01.06.07 - Washington, DC -– The Renewable Fuels Association (RFA) Dec. 29 announced that domestic October ethanol production tied the all-time high set in September 2006 by producing 333,000 barrels per day (b/d), according to data released by the Energy Information Administration (EIA). The U.S. ethanol industry was averaging 310,000 b/d of production through October, an annualized volume of 4.75 billion gallons. Industry estimates show ethanol production reaching 4.9 billion gallons for the year, an increase of more than 25 percent from 2005.

“The U.S. ethanol industry is rising to the challenge of helping set America on the path of growing energy independence,” said RFA President Bob Dinneen.

“The rapid growth in ethanol demand seen in 2006 was mirrored by our industry’s commitment to increasing ethanol production. The result has been one of the most dynamic and fast-growing energy sectors anywhere in the world." Demand for ethanol has also soared in 2006. October demand was 391,000 b/d, up from 278,000 b/d in 2005. For the year, demand has averaged 339,000 b/d or more than 4.3 billion gallons. Total demand for 2006 will greatly exceed 5 billion gallons, more than one billion gallons over the requirement of the Renewable Fuels Standard (RFS). Currently, 110 grain ethanol biorefineries have the capacity to produce more than 5.3 billion gallons of ethanol ethanol. An additional 79 construction projects are underway that will add nearly 6 billion gallons of new ethanol production capacity. For more information, call Matt Hartwig, RFA, at 202-289-3835.

01.05.07 - SAN RAMON, Calif.  – Oct. 10, 2006 – Chevron Energy Solutions (CES), a Chevron Corporation (NYSE: CVX) subsidiary that develops energy efficiency and alternative energy projects, announced today that it will conduct preliminary work to prepare a proposal for the development of highly efficient ethanol production plants for Ethanex Energy, Inc. (OTCBB: EHNX), a renewable energy company engaged in low-cost ethanol production.
Under an agreement with Ethanex, CES will perform engineering, geotechnical studies, site and civil design work in order to prepare a detailed proposal for developing and building ethanol plants that use advanced technology to maximize the plants’ efficiency. The proposal will include details necessary for CES to negotiate contracts to engineer, procure and construct for Ethanex at least three biofuel plants by 2008. The plants, t