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Building or Buying a Biofuel Plant? Think PSM

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By Charles B. Palmer

August 12, 2014

Business Operations 

Companies constructing new biofuel plants or acquiring existing plants must not overlook Process Safety Management as part of the due diligence process, writes Charles B. Palmer. Doing so could be a costly error.

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An annual report on Brazil's biofuel sector has been filed with the USDA Foreign Agriculture Service's Global Agricultural Information Network, predicting Brazilian ethanol production will increase 5 percent next year.

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The ratio between D6 ethanol renewable identification numbers (RINs) and D4 biodiesel RINs are primary clues indicating the market expects the U.S. EPA to roll back its proposed cuts to the renewable fuels standard (RFS).

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The Andersons Inc. has released financial results for the second quarter, reporting record operating income of $33.9 million for its Ethanol Group. The Ethanol Group also had record E85 sales and increased distillers dried grains and corn oil sales.

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Archer Daniels Midland Co. has announced second quarter financial results, reporting that operating profit for its bioproducts division increased by $44 million, reaching $141 million for the quarter, driven by strong demand and good margins.

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With the recent announcement that Aventine Renewable Energy Inc. has successfully restarted its 45 MMgy ethanol plant in Aurora, Nebraska, the company has now attained its goal of restarting four Aventine facilities.

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Much discussion of the E10 blend wall was to be found at the 2014 American Coalition of Ethanol conference. The last day of events began with retailers who were able to get over the wall and install equipment to sell E15 and E85.

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A popular breakout session at the 2014 American Coalition for Ethanol conference discussed the potential impacts the Food and Drug Administration's Food Safety Modernization Act may have on plant operations.

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University of Minnesota researchers spoke about their efforts to recover valuable biobased products from thin stillage in corn ethanol plants during the 2014 American Coalition for Ethanol conference.

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Corn ethanol producers at the 2014 American Coalition for Ethanol conference spoke on how they are differentiating themselves from the pack through the addition of biodiesel, renewable diesel and cellulosic ethanol production.

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The 60-day public comment period on a proposed rule that aims to improve the safety of rail transportation of flammable materials, particularly crude oil and ethanol, is now open. The comment period closes Sept. 30.

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The U.S. EPA has released renewable identification number (RIN) data for June, reporting that more than 1.46 billion RINs were generated during the month across all biofuel categories.

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Pacific Ethanol Inc. has released financial results for the second quarter of 2014, reporting net sales of $321.1 million, a 37.4 percent increase over the $233.8 million in net sales reported for the same period of last year.

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The European Union has filed its annual biofuels report with the USDA Foreign Agricultural Service's Global Agricultural Information Network, reporting that the European Commission aims to reach an agreement on future biofuel policy by October.

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With corn prices the lowest in years, the question arises whether farmers who invested in ethanol plants are finding it an effective hedge. Retired Iowa State University ag economist Don Hofstrand analyzed the question in a recent newsletter.

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On July 23, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration released proposed rulemaking that aims to improve the safety of rail transportation of flammable materials, particularly crude oil and ethanol.

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Forward-thinking producers will build on technological improvements implemented in recent years.

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The agenda for the 2015 National Advanced Biofuels Conference & Expo has been released. The Oct. 13-14 event, located in Minneapolis, Minnesota, will focus on next-generation biofuels technology integration opportunities for existing biofuel plants.

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Beginning this fall, South Florida State College will offer a Bioenergy Education Program to provide students with a foundation of environmental sciences and renewable energy. The program will focus on preparing students for technician positions.

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I love writing about and hearing about good news stories in the ethanol industry. Here at my blog, I like to take the opportunity to highlight those stories.

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Installing draft regulator in exhaust stack improves boiler operations, thermal efficiency.

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International technology Group Andritz has received an order to supply equipment, engineering, and field services for Fiberight's cellulosic ethanol plant in Blairstown, Iowa. Start-up is planned for the first quarter of 2015.

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The National Grain and Feed Association has submitted an extensive proposal to the Surface Transportation Board, urging the STB to establish new rules and procedures that captive grain shippers could use to challenge unreasonable rail freight rates.

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Galva, Iowa-based Quad County Corn Processors is now producing cellulosic ethanol through its 2 MMgy Adding Cellulosic Ethanol project, which converts corn kernel fiber into fuel. Ethanol industry trade groups have praised the achievement.

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Over the next several months, the USDA's National Agricultural Statistics Service will contact ethanol producers across the United States, as the agency is preparing to conduct a monthly Current Agricultural Industry Report survey.

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The Brazilian sugarcane association, UNICA, has issued a new bi-weekly harvest update, reporting mills in Brazil's south-central region produced 1.72 billion liters (454.90 million gallons) of ethanol during the first two weeks of June.

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On June 20, the Surface Transportation Board took action to help ensure the Canadian Pacific Railway Co. and BNSF Railway Co. resolve the backlog of grain car orders on their respective networks prior to the fall harvest.

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On June 23, the U.S. Supreme Court issued its decision on the U.S. EPA's Tailoring Rule. It did not, however, address the uncertainty faced by those in the biomass industry with regard to the EPA's treatment of biogenic emissions.

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Greenbrier announces tank car awards

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By Greenbrier Companies Inc.

June 23, 2014

The Greenbrier Companies Inc. announced its first awards from multiple customers for construction of 3,500 units of its new Tank Car of the Future, which is designed for safer transportation of crude, ethanol and other flammables.

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Nathan Misirian, director of key accounts and strategy at Hydro-Thermal, announced an innovative breakthrough for optimizing enzymes at the slurry tank with a new heating method at the 2014 International Fuel Ethanol Workshop in Indianapolis.

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