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Putting a Face
ON THE FIGHT p. 12
A Note from our CEO Dear friend, The entire team at Growth Energy hopes you and your family are staying healthy and safe right now. Above all else, that's most important. In this unprecedented time, we have all had to make adjustments big and small. Our daily lives have been upended, our kids and grandkids are learning in entirely new ways, and your plants and businesses across the country are having to make unimaginably difficult decisions every day. We, too, are adjusting to serve our members in this new reality. To that end, we are changing how we’ll be sharing our American Ethanol magazine. This issue marks our first exclusively digital issue and our magazine will continue with this format for the remainder of the year. During this time of upheaval, it is important we continue communicating with our stakeholders, and I know from so many of you that our magazine is a key tool in keeping you updated on our milestones. Our magazine is also a celebration of our incredible members and the things you all do every day to help us tell your story — it’s a forum that allows us to have conversations with our Hill champions and dive deep into how we’re building out the higher blends marketplace; it allows us to showcase how we’re moving the needle in preparing the next generation of auto mechanics with our Universal Technical Institute partnership, and so much more. The bulk of this issue was written before COVID-19 overturned our lives and inflicted a severe blow to our industry. Were it written today, it would surely be different. However, in the spirit of normalcy, we are sending out our issue as it was meant to be with the hope that sooner rather than later, we will once again be celebrating the tenacity and ingenuity of our great industry on the other end of this crisis. In the meantime, we continue to advocate passionately on your behalf, leveraging new forms of virtual communications as well as traditional ones. We'll get through this together and if I know one thing about this industry, it’s that when we do — we’ll be stronger than ever. Until then, be well and stay strong.
Emily Skor Growth Energy CEO
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CONTENTS 5
COVER STORY
Ammunition for the Invisible War
10 8
Bringing The Andersons Onboard
Biofuels Champion
16
The Guys Under the Hood
12
Putting a Face on the Fight
21 19
Legacy of a Leader
25
Growth Energy represents producers and supporters of ethanol working to bring
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Part of the Climate Cure
More Growth on the Horizon
Henry Ford’s Vision Helped Fuel NASCAR
American Ethanol The Magazine is published quarterly by Growth Energy™, 701 8th St NW Suite 450, Washington, DC 20001. For more information, please call 202.545.4000 or visit AmericanEthanolRacing.com.
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Casting a Vision for 2020 and Beyond
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consumers better choices at the fuel pump, grow America’s economy, and improve the environment for future generations. Our organization’s national campaign – online at www.GetBiofuel.com – serves as the leading source of information for consumers seeking cleaner, more affordable fueling options.
Sausage and Shrimp Paella for Beginners
For more information, please call 202.545.4000 or visit AmericanEthanolRacing.com. Ryan Welsh, Publisher. Majda Olson, Editor. Houston Ruck, Creative Director. © 2020 Growth Energy. All Rights Reserved.
AMERICAN ETHANOL THE MAGAZINE
AMMUNITION for the
INVISIBLE WAR When you produce alcohol, and the world desperately needs it, you take the steps necessary to help your community, state, and nation cope with an unprecedented threat — especially if helping is in your DNA.
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Western New York Energy provides ethanol to distillers like Black Button Distilling (left) who have temporarily switched to hand sanitizer production. On the right, an Absolute Energy employee prepares totes of ethanol to be used in hand sanitizer production.
Similar to a wartime situation, biofuel industry members have shifted a portion of their capacity toward the production of hand sanitizers and sanitizer components to address the critical need created by the COVID-19 pandemic. “Our biofuel producers are very community based,” said Chris Bliley, Growth Energy senior vice president of regulatory affairs. “They saw a need and set about trying to fill that need.” Some plants were already producing product suitable for use in sanitizers prior to the crisis. Others faced regulatory challenges as they worked to convert at least a portion of their output to sanitizer components. “There were FDA, EPA, and the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations that had to be addressed in some cases,” Bliley noted. “Those organizations went to work to adjust their formulation requirements so that more producers could supply the market while maintaining the safety and efficacy of the final sanitizer products. We’ve encouraged everyone to look at the FDA and TTB guidance closely as producers decide whether to enter this market.”
Strong, varied response Biofuel producers throughout the country have committed their resources to aid in the COVID fight in various ways, ranging from product donation to the manufacture of market-ready hand sanitizer. “Our goal from the beginning was to do our part to meet America’s hand sanitizer needs during the COVID-19 emergency,” said Mitch Miller, chief executive officer of Carbon Green Bioenergy. “We
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believe that alcohol is the most effective sanitizer and we are uniquely positioned to produce a highquality product. “One Ethanol and Carbon Green BioEnergy worked closely together to meet FDA guidelines while addressing the urgent need for sanitizer,” he continued. “We produced high-quality alcohol at Carbon Green. One Ethanol then blended, packaged and marketed FDA-approved hand sanitizer. Our plan is to continue to meet this need long after the state of emergency has passed.” Like Carbon Green Bioenergy, a number of ethanol producers focused their efforts on producing and, in some cases, donating ethanol to be further processed into hand sanitizer elsewhere. Others had the ability to produce a finished product themselves. Show Me Ethanol in Carrolton, Missouri, did both. In addition to producing 40,000 gallons of specialized ethanol for sanitizer production, the plant blended its own sanitizer and distributed it in the Carrolton community. Marquis Extraction Technologies was in a position to take a portion of their ethanol production and produce, bottle, and ship sanitizer in-house. “What gave us an advantage was the fact that we had been transitioning into the CBD market and the production of oral tinctures,” said Danielle Anderson, director of government affairs and public relations for Marquis Extraction Technologies. “It did require some conversion and a rapid response from our team. “This highlights the ingenuity of our industry,” Anderson added. “Across the board, biofuel producers have always been able to rise to
AMERICAN ETHANOL THE MAGAZINE
the occasion and innovate. This time that innovation has the added benefit of helping our country in a crisis.”
PANDEMIC PIVOT The industry is working to help our nation handle the COVID-19 crisis.
Other segments of the biofuel and agricultural industries have also stepped forward to aid in the battle against COVID-19, noted Growth Energy’s director of communications Leigh Claffey. “Our members are doing some great work,” she said. “ADM has pledged $1 million toward efforts to fight the pandemic. Novozymes is co-developing a method to sanitize test plates for re-use while BASF is helping provide denaturant to be used in sanitizer production.” “It’s been incredible to see the response from our members, who are helping out not to turn a profit but because they saw the opportunity to step up in a time of need.”
Groups engaged in the production of hand sanitizer:
One of Carbon Green Bioenergy’s signs promoting their hand sanitizer.
Across the board, biofuel producers have always been able to rise to the occasion and innovate. This time that innovation has the added benefit of helping our country in a crisis. ISSUE 14
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B I O F U E L S
C H A M P I O N
For Her, It’s Personal Issues Hit Close to Home for Biofuel Champion
Whether you care about climate change and the future of the environment or care about the good jobs being created throughout the Midwest, biofuels are a topic that people need to — and do — care about. It’s a topic that draws a broad coalition.”
In each issue of American Ethanol magazine, we feature a Biofuels Champion. These are individuals or organizations who understand the importance of biofuels to our economy and environment and are committed to supporting our industry. The Biofuels Champion for this issue is Congresswoman Abby Finkenauer. It can be argued that few public servants have been as prepared to make an immediate impact as Representative Abby Finkenauer. She was elected to the Iowa State House of Representatives at the age of 25. After serving two terms, Finkenauer was elected to the U.S. House of Representatives in 2018. Two weeks after taking office, she passed her first bill — a freshman record. Running on a fast track, however, is not Finkenauer’s goal. “I ran for Congress because so many things that I saw happening at the federal level were impacting people I know and care about — my family, friends, and neighbors,” she emphasized. “I’ve often said that what happens to my state, and to neighboring states, is personal.” A native of Sherrill, a small town north of Dubuque, Finkenauer represents Iowa’s first congressional district. “Sherrill has more cows than people,” she quipped. “Agriculture and manufacturing are so closely tied together in Iowa. We manufacture John Deere® tractors in my district, and if our farmers are not doing well, they are not buying tractors and we are losing jobs. The importance of renewable fuels to the American consumer and our economy cannot be overstated.”
Cooperation without compromise Below: Congreswoman Abby Finkenauer visits Big River Resources ethanol plant in Dyersville. Right: Rep. Finkenauer and her dad enjoying some bass fishing.
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Finkenaur credits a part of her effectiveness as a legislator to her willingness to reach across the aisle. “I will work with anybody regardless of party affiliation or ideology if it’s on a topic that will help our state or our country,” she states. “I find common ground where I can, but I’m not afraid to step up and speak for people who might be forgotten in the process. That’s my job.” Biofuel production is an issue that crosses boundaries, according to Finkenauer. “That was evident at the biodiesel press conference in April. It was bicameral, bipartisan, all ideologies talking about why we needed to get the biodiesel tax credit extended. That five-year extension was huge — an unprecedented length of time — which gives some real certainty for the industry and our domestic soybean market, which is incredibly important. AMERICAN ETHANOL THE MAGAZINE
B I O F U E L S
C H A M P I O N Stopping the small refinery exemptions (SREs) as a first step toward restoring the lost corn demand is an ongoing priority for Finkenauer. “This is particularly important because our farmers have been hit from all sides,” she said. “That’s why we were happy to have the Government Accounting Office investigation we requested in August approved in January. It’s important to make sure we get to the bottom of this SRE issue and that it stops. You shouldn’t have people who don’t even fit the definition of what a small refinery is getting these waivers. It doesn’t make sense, it’s wrong, and it’s something we’re going to keep uplifting until it’s fixed.” Whether her sister and brother-in-law or the many other constituents throughout her district impacted by ag and biofuel policy decisions, Finkenauer is committed to telling their stories.
Congresswoman Abby Finkenauer (D-IA)
“Whether you care about climate change and the future of the environment or care about the good jobs being created throughout the Midwest, biofuels are a topic that people need to — and do — care about,” she continued. “It’s a topic that draws a broad coalition.” In April, Finkenauer introduced the Clean Fuels Deployment Act of 2020, which would provide $600 million over six years to install and convert fuel pump infrastructure to deliver higher blends of ethanol and biodiesel. Among the original co-sponsors are two Democrats and two Republicans. With two biodiesel and seven ethanol plants in her district, Finkenauer has a professional interest in the future of the biofuels. But her commitment to the industry is also deeply personal. “My sister and brother-in-law are corn and soybean farmers,” she related. “They inherited the farm several years ago after his parents were killed in a motorcycle accident. Recently, he was talking about a bin of beans on the farm that are worth $50,000 today less than they were when they took over the farm. It shouldn’t be this way. Whether it’s the small refinery exemptions that have cost our corn farmers four billion bushels of corn demand or the ongoing trade wars, it’s unconscionable what’s happening.” ISSUE 14
“I pull the liaisons off the House floor, and the trade representatives, and I tell them that these are not just numbers, they’re people’s lives,” she stressed. “That’s what I wake up thinking about, go to bed thinking about, and talk about it to anyone who will listen during the day. What is going on in the Midwest is too important to be ignored. We have a lot of folks who are hurting, and I want to make sure they are not lost in the politics of all this. It’s the future of my state that is literally on the line.” On a personal note: Unsurprisingly, Finkenauer’s leisure pursuits also revolve around family and home. “I was lucky to grow up with a pond in my back yard,” she related. “Dad worked out of town most of my life, so when he would come home, one of our favorite things to do was go fishing in the back yard and catch bass. In high school I would get off the bus, go to the pond, and catch bass. “I remember one time my brother came home from college, and I asked him about my thumb — what do you do when it’s all scratched up from taking the bass off the hook. My brother has been proud of what I’ve done, serving our communities and our country, but I have never seen my brother prouder than when he realized his little sister had ‘bass thumb.' So, I still love to go fishing with dad in the backyard when I get home to Sherrill. I also love hanging out with my nieces and nephews, and I’m recently engaged.”
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Bringing The Andersons Onboard We’ve all heard the expression about what familiarity breeds. In the case of Jim Pirolli and The Andersons, however, familiarity bred participation. The Andersons is one of the newest Growth Energy members and Pirolli, president of The Andersons Ethanol Group, now sits on the Growth Energy Board of Directors. For Pirolli, the relationship began in 2014 when he became the vice president of fuels for Kum & Go. “After working for ADM for 13 years, I took the position with Kum & Go, building their fuel business with a big emphasis on renewables,” he said. “That’s where I made the initial connection with some of the folks at Prime the Pump and Growth Energy.” Pirolli brought that connection with him when he came to The Andersons in 2017, a move that was actually facilitated in part by his wife, Sarah. “I’d known of The Andersons for quite a while from my ADM and Kum & Go days,” he related. “Interestingly, my wife was in charge of DDG sales for Flint Hills. Through an initiative to market one of the ethanol co-products, she met some people from The Andersons. I was also doing ethanol business with them. One thing led to another and we both came to work for them. She is now vice president and general manager of liquid specialty fertilizer and ag supply chain.”
Growth and diversification Harold Anderson launched what is now The Andersons, Inc. as a family partnership in 1947. That year, they built an export grain terminal in Maumee, Ohio to ship grain from Ohio, Michigan, and the Midwest to distant markets via the Great Lakes. Over the next 70-plus years, The Andersons grew Ethanol is an earthinto a diversified ag supply chain company with four friendly biofuel that can business groups — Ethanol, Trade, Plant Nutrient, and reduce greenhouse gas Rail — and facilities in 25 states. “One of the primary reasons Sarah and I came to work here was The Andersons’ Statement of Principles and how they lived those principles,” Pirolli stated. “Their values of safety, service, ownership, innovation, and customer focus are things that are also important to me. I saw an opportunity to come to a company I believe is a leader in all the fields in which they participate.”
emissions by as much as 86 percent — and this percentage continues to increase with ongoing innovations in advanced biofuels.
Pirolli heads up an ethanol group with five production facilities across Indiana, Iowa, Kansas, Michigan, and Ohio. The newest, ELEMENT, LLC in Colwich, Kansas, is the most advanced dry milling complex in the world. His interest in renewable fuels is both professional and personal.
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AMERICAN ETHANOL THE MAGAZINE
ELEMENT, LLC
“Sarah grew up on a farm in northwest Iowa, and our family heads to the farm in the spring and fall to help out,” he said. “We are connected to agriculture and feel strongly about sustainable practices and the importance of renewable energy.”
A part to play Pirolli believes that himself as a voice on the board and The Andersons as a Growth Energy member both bring unique strengths to the organization and the industry. “I view Growth Energy as a progressive organization focused on some of the most relevant issues in the industry,” Pirolli explained, “such as growing both domestic and international ethanol demand, with an emphasis on getting E15 across the finish line. They have shown the ability to align some of the largest and most forward-thinking forces in the biofuel industry. “A strength of The Andersons over the years has been the ability to not only add value to the supply chain, but to bring additional investors and business partners into the process,” he continued. “For example, Marathon Petroleum Corporation is our ownership partner in four of our ethanol plants.
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We buy the corn, operate the facility, and merchandise all the finished goods. Marathon is an equity partner who participates in our risk management decisions and benefits from their equity ownership in the plants. In much the same way, we’ve partnered with ICM at the ELEMENT facility. “The point is, we’ve enjoyed great success because of collaborative relationships. We’re used to doing that,” he summarized. “I believe we’re in a position to bring together parties — ethanol producers, petroleum refiners, automakers, and corn growers — that have typically held divergent views. The Andersons joining Growth Energy and being represented on the board is a critical step in bringing some of the best forward-looking minds together to move our industry forward.” Bringing those diverse groups together, Pirolli believes, will be one of the keys to writing the next chapter of the ethanol story. “We have a great product with an excellent story behind it,” he said. “Some barriers have been removed, and it’s time to take the next step to move the message of our clean, low-carbon, low-cost fuel forward.”
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Putting a Face on the Fight Washington D.C. is a long way from middle America. More than the simple fact of physical distance, the constant barrage of issues and policy discussions make it easy — even necessary — for legislators to reduce complex issues to the common denominator of dollars and cents. In the process, the human impact of their decisions can be obscured.
Kelly Nieuwenhuis
The solution is to put a face to an issue.
In the battle to address a broken system of Small Refinery Exemptions (SREs), Growth Energy found that face in the person of Kelly Nieuwenhuis. “The impact of the SREs kept getting worse,” recalled Leigh Claffey, Growth Energy director of communications. “It was hard to show that pain. We needed farmers to speak up, but they are ‘pull yourself up by your bootstraps’ people. It’s not easy for them to admit they’re struggling.
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“Kelly Nieuwenhuis and a couple of our other members really stepped out of their comfort zone,” she continued. “They said, ‘Hey, it’s important that we get our message out.’ They volunteered to talk not only to local and regional media, but Kelly invited the Washington Post to come out to his farm.” And that was just the beginning. Ultimately, Nieuwenhuis was called to testify before Congress about the havoc SREs were wreaking in both the farming and biofuel community.
AMERICAN ETHANOL THE MAGAZINE
Fit for the fight
In many ways, Nieuwenhuis had been preparing for this opportunity for years. The Primghar, Iowa native is a lifelong family farmer and an investor and board member of Siouxland Energy Cooperative. In September 2019, he and other board members had to make the decision to shut down the plant to prevent catastrophic financial losses. “As the board president, I was the person tasked with telling our 42 employees we were idling the plant,” Nieuwenhuis said. “That was one of the toughest things I’ve ever had to do. When Kelly Manning and John Fuher with Growth Energy contacted me about testifying, it was right in the middle of harvest. I’ve always been someone who promotes what I produce and am passionate about. “I talked to my two brothers I farm with about the opportunity,” he continued. “We all know how important biofuels have been to our farming operation, and we have to fight for it. They told me to go for it — that I had to do it. So, the decision was made in about four hours.” “Kelly is a great example of someone stepping up and putting a face on the pain that we all knew was out in the rural communities,” Claffey said. “As we were meeting before he testified before the Energy and Commerce Committee, he got choked up Nieuwenhuis speaks with talking about telling Congressman Dave Loebsack after sharing his testimony. the employees about the plant shutdown. We were grateful he was willing to share that publicly.” Nieuwenhuis worked with Growth Energy staff members to fine-tune his written and oral testimony. “It was my story, but I was so thankful to have the help of the Growth Energy staff,” he said. “I’ve never sat before a Congressional committee before and had five minutes to do something that important. “From my perspective, it was good to have a farmer sitting there with the others who were testifying,” Nieuwenhuis said. “We’ve got skin in the game on two side. We’re losing demand for the corn and soybeans we produce and we’re getting hit on the ISSUE 14
investments we have in these ethanol and biodiesel plants. We need to continue to speak out and have our voices heard.”
Focused on the future The battle against the granting of unwarranted SREs continues. Though the EPA restored some demand, much more remains to be accomplished. As for Nieuwenhuis, he continues to receive media requests. “I’ve done an interview with CNN and spoken with a Japanese paper about the ag industry, the ethanol industry, and the Japanese trade agreement,” he noted. “I’m doing my best to avoid politics and stick to the biofuel and ag industries.” Siouxland Energy kept their employees fully compensated during the shutdown and resumed operations on Oct. 25. While margins are still less than hoped for, Nieuwenhuis remains positive about the future of biofuels.
Siouxland Energy Cooperative was forced to suspend operations to avoid catastrophic losses due in part to the dramatic increase in SREs.
“I like a lot of the things that are going on in the biofuels industry with the low-carbon discussion and the recognition of how both the ag and biofuel industries can be part of the climate change solution,” he said. “I think we really need to focus on the RFS reset in 2022. We need to hold strong and maintain the RFS. “In the 25 years before the RFS and the ethanol boom, there were only two years in which we sold our corn in the black,” he concluded. “After the RFS, we had eight consecutive years when we sold in the black. Farmers want markets, not subsidies, and the biofuel industry has been very good for the farmer.” 13
Casting a Vision for 2020 and Beyond More than 350 of the nation’s top ethanol industry leaders and innovators came to Key Biscayne, Florida, Feb. 5-8 to attend Growth Energy’s 11th annual Executive Leadership Conference (ELC). Focusing on the theme “20/20 Vision,” this year’s ELC featured a technical forum, panel discussions, networking, and charity events.
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rowth Energy CEO Emily Skor set the tone for the conference with her opening address. “Growth Energy will approach this decade through the lens of what will drive demand for American ethanol and propel this industry forward,” Skor shared. “We envision a future without barriers in the marketplace. Where infrastructure nationwide supports all ethanol blends. Where policymakers globally lean in on ethanol, embracing it as a solution to climate change. And where consumer confidence in ethanol soars to new heights. “Politically, both parties are looking for innovative solutions that will bring us to a low-carbon solution. We are that solution. We represent the transformational change that world leaders are seeking,” continued Skor. Highlights from the conference included the first annual ELC Technical Executive Forum, where attendees heard from experts on how to manage risk, lower their carbon footprint, and better utilize dried distillers grains to grow their bottom line. Growth Energy staff also shared their outlook on the association’s policy priorities in 2020. Sarah Robb O’Hagan, the CEO of Extreme Living, keynoted this year’s ELC and gave her perspective on achieving success in an evolving and ever-more competitive world.
3 1. Global market and export managers discuss prospects for ethanol in international markets. 2. Growth Energy Chairman Dan Sanders opens the Executive Leadership Conference. 3. Universal Technical Institute’s John Dodson (center) details the success of the American Ethanol Resource Center at the Mooresville, N.C. campus location.
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We envision a future without barriers in the marketplace. Where infrastructure nationwide supports all ethanol blends. Where policymakers globally lean in on ethanol, embracing it as a solution to climate change. And where consumer confidence in ethanol soars to new heights. Emily Skor, CEO
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5 4. Growth Energy CEO Emily Skor poses with former board chairman Jeff Broin after presenting the American Biofuels Visionary award. 5. Members of the Growth Energy board of directors observe a moment of remembrance for Big River Resources, LLC President, CEO, and Chairman Ray Defenbaugh.
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The Guys Under the Hood The seed was planted on a trip to a salvage auction. It germinated on a windrower one South Dakota summer. Today, one mother’s vision has grown into the most widely syndicated car talk show in America — the Under the Hood (UTH) show. The story of how it came to be is just as entertaining as the show itself — though we’ll have to settle for the short version here. “We’re very faithful people, and sometimes God has a plan you can’t really imagine,” stated Shannon Nordstrom, who was the voice of the first broadcast in August 1990. “My mother, Marie Nordstrom, got the idea for a car talk show after visiting with a gentleman at an auction who had a local cable program.” Marie’s husband, Art, had a connection with local broadcast legend Wayne Pritchard. As she listened to his morning program while she cut alfalfa, she decided to contact him about starting a car talk show on his station, KSOOAM in Sioux Falls. That was the beginning. “I was 19 when I did that first broadcast, and the show was mostly an infomercial for the family auto part business,” Nordstrom recalled. “It quickly morphed into a car talk show and off we went.” Over the years, the show has changed stations, added Russ “The Supertech” Evans, Chris Carter, and producer Doug Mashek to the broadcast team 16
and went into syndication. Today, their two-hour broadcast is heard on more than 225 stations in 44 states. They also produce one of the nation’s leading automotive podcasts and a syndicated newspaper column.
The Growth Energy connection It’s no secret the UTH guys are unabashed fans of ethanol. “We’ve been supporters of ethanol since the show began in 1990,” Nordstrom noted. “Vollan Oil Company is our neighbor, and Bruce Vollan was in my wedding, so he was always in my ear about how great ethanol was. “Folks in the ethanol industry have listened to our show and watched us grow,” Evans added. “They told us, ‘There is a great connection between your listeners and you, and you’re already telling people ethanol is a good product, so this just makes a good fit.’ “I connected with Kelly Manning at a faith event here in the area,” Nordstrom continued. “As I got to know him and Growth Energy, I told him we should talk about doing more with this relationship. “We’ve had success building awareness of ethanol as a high-performance fuel through our relationship with NASCAR®,” said Austin Dabney, former Growth Energy senior manager of communications. “We’re working to educate a group of key influencers, the AMERICAN ETHANOL THE MAGAZINE
professional mechanics, through our connection with Universal Technical Institute. The next level of influencers are the do-it-yourself car enthusiasts — the people who listen to Under the Hood. Since Shannon, Russ and Chris are already ethanol supporters, this feels like a natural partnership.” The UTH crew appeared at the 2020 ELC, moderating a panel discussion with Dabney, John Dodson of NASCAR and Dr. Andy Randolph of ECR Engines. Plans are in the works to collaborate on future projects. Under the Hood has plans, too. They’re building a broadcast studio on the grounds of the family business, Nordstrom’s Automotive, where they will broadcast their show and extend the length of their podcast. “Nordstrom’s sits in the middle of the automotive universe, so we understand independent garages, dealerships, and do-it-yourselfers,” Shannon stated. “Russ and I have been in the automotive business for a long time. Our goal with Under the Hood is to help our listeners make a better decision. We don’t want to sell anything — we just want to educate people about their cars. That includes the fuel they run on.”
“Under the Hood” radio show hosts (from right) Russ Evans, Chris Carter, and Shannon Nordstrom moderate a panel discussion about ethanol and consumer engagement during the 2020 Executive Leadership Conference in Key Biscayne, Fla.
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Legacy of T a Leader
he ethanol industry and agricultural community lost a larger-than-life leader with the passing of Ray Defenbaugh on Jan. 22, 2020. A banker, educator, and entrepreneur, Ray was a farmer at heart. For a time, it appeared the accident that took a part of his arm at age 17 would prevent him from pursuing his chosen profession, but his persistence won out and he began farming full time in 1983. Ray was actively involved with the farm until early 2001 when he began working with local Iowa and Illinois farmers to build a farmer owned ethanol plant. Ray was a founding member, president, CEO, and chairman of Big River Resources, LLC. He was instrumental in raising funds to build the company’s first ethanol plant in West Burlington, Iowa. Today, Big River Resources, LLC employs over 300 people and operates four ethanol plants in three states, as well as operates numerous grain elevator facilities. Ray was a longtime Growth Energy board member and served on many ethanol industry-related boards, including: the Illinois and Iowa Renewable Fuels Associations, the National Renewable Fuels Association, Urban Air Initiative, and the American Coalition for Ethanol.
Ray Defenbaugh
You can find Ms. Spangler’s excellent story on Ray at farmprogress.com/commentary/ what-one-life-can-leave-behind.
(Left) Former U.S. Rep. Beto O’Rourke stops for a minute to talk to Ray Defenbaugh during a tour at Big River Resources — West Burlington. (Right) U.S. Senator Elizabeth Warren (D-Mass.) talks with Ray Defenbaugh during a plant tour of Big River Resources-Dyersville in June 2019.
“To those of us within it, the ethanol industry often feels like a big family. Today that entire family mourns the loss of one of our own, Ray Defenbaugh,” said Growth Energy CEO Emily Skor when she learned of his passing. “We will always remember his relentless spirit — his honesty, optimism, humor, and especially his fierce, fierce loyalty. We are all better off for knowing him and our community will feel this loss deeply.” Ray’s outgoing approach and background as an educator made him an effective ambassador for the ethanol industry. And, as Farm Progress writer Holly Spangler noted in her article on his life and legacy, he was known for his sense of humor and storytelling ability — particularly one tale about monkeys and gorillas. Though Growth Energy and the ethanol industry will not be the same without him, his legacy will live on. ISSUE 14
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CONGRATULATIONS
JEFF BROIN
AMERICAN BIOFUELS VISIONARY Awarded in tribute to a lifetime of leadership that has fueled the growth of America’s entire biofuel sector.
More Growth on the Horizon Ethanol has the
highest blending octane
of available additives — which allows for better performing engines that have greater fuel efficiency,
run cooler and produce fewer harmful emissions.
A
s a new decade begins, Growth Energy is already working to extend their upward market development trajectory. Vice President of Market Development Mike O’Brien outlined four major initiatives that will shape development efforts in 2020 and beyond. “First, our direction has been to go after the top 20 retail chains in the U.S., and we have made great progress there,” he said. “To put that in perspective, however, there is the potential for 1.33 to 1.5 billion new gallons of demand to be gained from those chains. That will be an ongoing part of our market development program.” With that initiative well underway, a second emphasis will focus on key metropolitan areas. “We’ve identified five geographic markets that have high volume potential — Dallas/Fort Worth, Orlando, Denver, Minneapolis, and New York City/ Boston,” O’Brien said. According to O’Brien, the metro areas to be targeted were selected based on the input of a working group of ethanol marketers and producers. “We ranked the markets on four criteria,” he elaborated. “For a market to be worthwhile, we had to have a high concentration of independent retailers. We also had to have an Unleaded 88 supplier in the market, the markets had to be high-volume, and they had to have a favorable regulatory environment. “With the target markets identified, the next step is to build a plan for each market, because each is different,” O’Brien continued. “We do that by overlaying activities – workshops and webcasts – where we bring in experts on Unleaded 88 and ISSUE 14
the regulatory scene, retailers who are already selling the product, and a terminal supplier.” A third initiative is fueled by the RVP waiver and year-round availability of Unleaded 88 (E15). “With the certainty of year-round sales, many retailers are bringing in Unleaded 88 and replacing their 87 octane E10,” O’Brien explained. “That’s important because 50-60 percent of the gas stations in the U.S., only have two tanks below ground. The switch is a way for us to build out our market without having to put in another tank and new dispensers. “If we can demonstrate that Unleaded 88 is a good replacement for what they’re currently doing, it will help accelerate demand,” he continued. “The retailer does make a couple of pennies of additional margin, and when you multiply that by a billion gallons it makes a significant difference. There is a bit of a fear factor in all of this, but we’re in the early stages of overcoming those concerns.” Last but not least, the USDA recently announced a $100 million grant program to help expand ethanol infrastructure. “I’ve been in meetings and on conference calls with them working to structure the program,” O’Brien said. “We’re working as closely as possible with them to maximize volume in the marketplace and have shared the experience we’ve gained working with 2,000-plus retail sites.” Years of market expansion and the lifting of the RVP waiver have created tremendous upward movement for the biofuel industry. The Growth Energy market development team is poised to capitalize on this momentum in 2020 and the years to come. 21
Part of the Climate Cure The climate change discussion — and the planet — continues heat up and to those in the biofuel industry, the debate is more than academic. Ethanol is already playing a key role in the effort to reduce humanity’s carbon footprint.
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s the debate on climate continues to move forward, the facts affirm what everyone in the industry has known for a long time — that ethanol is a low-carbon biofuel,” stated Chris Bliley, senior vice president of regulatory affairs for Growth Energy. “It’s renewable, made from plants, 39 percent better on greenhouse gas emissions than gasoline, and helps reduce airborne toxins like carbon monoxide and soot.” As governments look to implement their own climate solutions, Bliley is confident that biofuels, and particularly higher biofuel blends, can play a significant part in meeting short- and long-term climate goals. “As more data is gathered, science is catching up with the truth of what biofuels have to offer our environment,” Bliley continued. “For example, during the early days of the industry, we were unfairly portrayed as negatively impacting land use. Today, we’re producing significantly more corn on fewer acres, and that trend continues. As that story is better told, we have additional data to refute the unfounded claims against the industry.” Bliley pointed out that biofuels are already a mainstay in states that have initiated low-carbon fuel programs. “In California and Oregon, biofuels have
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accounted for 70 percent or more of the credits that have been generated under those programs. Those kinds of results solidify our role as a real climate solution moving forward.” Not only is the product good for the environment, but Bliley noted that the process is continually becoming greener as well. “Many people assume our industry is the same as it was 10-15 years ago,” he said. “Our plants continue to innovate and evolve. These are now biorefineries. Not only have they greatly refined the process of converting starch to ethanol, but they produce a broad range of co-products to utilize every bit of that corn kernel. “They’ve taken steps to reduce their environmental footprint, utilizing energy from their process to help heat their plant, recycling process water, and capturing CO2 for bottling and other uses,” Bliley continued. “Our plants continue to innovate to make that environmental story even better.” There’s one way that many of us can contribute to a better planet. “Everybody who drives can fill up with higher biofuel blends,” Bliley concludes. “That's something we can do immediately to help the environment.”
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The 55% drop in biofuel demand threatens these jobs. Support homegrown biofuels at GrowthEnergy.com/takeaction
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Henry Ford’s Vision Helped Fuel NASCAR By Ryan Welsh, Growth Energy Director of Sales and Marketing As I was watching the NASCAR® season fire up, I caught a clip of a historic race from the 1980s. I felt compelled to thank someone for all the excitement and advancement of the sport. It’s come a long way in the short time I’ve been a fan. So, this “thank you” goes to Henry Ford. Why Henry Ford? He did not invent NASCAR or the automobile. He was gone almost two years before the first NASCAR drivers raced in Charlotte, North Carolina. Ford deserves thanks because his vision and innovation enabled almost every working American to own a car. And he had bigger ideas on how to fuel them going forward. In 1901, immediately after his first automobile company failed, Ford entered an automobile race with a goal to re-establish credibility with investors. He built and piloted a car he named “Sweepstakes” to victory over the most notable race car driver of the era, Alexander Winton. Ford never expected to win, but the prize money and attention of new investors helped launch the Ford Motor Company and Ford Racing. Ford was smart enough to realize that his driving skills weren’t what got him in victory lane. His commitment to engineering and innovation was
his key to victory. He gladly hung up his goggles and never drove a race car again. Seven years later, the first Model T rolled off the assembly line in Detroit and forever changed America. Few, however, remember and acknowledge that the Model T was the first production flex-fuel vehicle. It could run on gasoline, ethanol, or both — a monumental example of American innovation and ingenuity. Ford believed in consumer choice and renewable energy. He famously told the New York Times, “The fuel of the future is going to come from fruit like that of sumac out by the road, or from apples, weeds, sawdust — almost anything. There is fuel in every bit of vegetable matter that can be fermented.” Today, American Ethanol producers are using that same innovation and spirit to produce fuel, food, and numerous products that you never would believe could come from a kernel of corn and vegetable matter.
flawless miles on Sunoco Green E15, a high-performance biofuel made with 15 percent American ethanol. He also would applaud the NASCAR Green platform, the most comprehensive initiative of recycling and sustainability in all of sports, of which American Ethanol is a founding partner. This renewable fuel doesn’t just show up in gas cans. It starts in the field — coming from the great stewards of the land, the American farmers, who are the undisputed champions in the world of agriculture because of their commitment to innovation, ingenuity, and sustainability. Being a competition sponsor in NASCAR guarantees American Ethanol a spot in victory lane every week. However, the real victory will come when every American consumer has a choice of renewable fuel at the pump. Thank you, Henry Ford, for your vision, for your ideals and for stepping out of your comfort zone and stepping into a race car.
If Ford were alive today, I’d like to think he would be an avid NASCAR fan — and not just because of the excitement and extremely high level of competition. I believe he would be proud of the fact that NASCAR has raced more than 15 million
Henry Ford
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SAUSAGE AND SHRIMP PAELLA FOR BEGINNERS Recipe and photo courtesy of Steve Bleyl, retired executive vice president of ethanol marketing for Green Plains Inc. Broth Ingredients
(Use a 12- to 13-inch wide skillet that is oven safe) • 2 tsp of olive oil • reserved shrimp shells from 1 pound of medium to large count shrimp • 1/2 to 1 tsp saffron threads (depending upon how strong you want the flavor — I recommend 1 tsp) • 2 1/4 cups of chicken broth
I like to cook — and I like to eat. I also enjoy eating great flavorful food. I have often eaten different paellas while traveling. I finally decided that I wanted to try and make one. I asked a good Spanish friend of mine if they could give me an easy recipe, because my sense was it was a fairly intricate dish to master. She gave me one that she said was foolproof and just right for a beginner, but would still yield a great dish to serve. This is that dish.
Broth Directions First make the saffron broth. Yes, saffron is crazy expensive but it is so crucial to the flavor. Put the shrimp shells in a saucepan over medium heat and drizzle with olive oil. Stir until the shells turn a nice pink color (a couple of minutes). Then, add your saffron with a few good stirs to mix and heat it. Add your chicken broth. Simmer for 20 minutes, strain and reserve. Season generously with salt, or your rice will be bland. After straining the color should be a rusty brown color.
Paella Ingredients • 1 tbsp olive oil
• 1/2 yellow onion, diced
• 1/2 cup peas
• salt and cayenne to taste
• 8 oz sliced sausage (slice on the bias as it looks cool). You can use any spicy or smoky sausage. I prefer andouille but chorizo is excellent, too.
• 2 cloves garlic, minced
• 1 tsp smoked paprika
• 1 1/3 cup of arborio rice. Go and find this rice, as this is the original and other types of rice don't do as well
• 2 cups hot saffron broth
• garnish top with a light drizzle of extra virgin olive oil and fresh chopped parsley
Paella Directions Real paella is cooked on the stove top and not in the oven. However, it is a challenge at first not to burn it, yet still get the proper caramelization and flavors to meld together. Preheat your oven to 425. In a large, shallow-bottom skillet over medium heat, add your olive oil and sliced sausage of choice, cooking on each side for about two minutes. Add in your diced onions and stir, cooking for about 2 to 3 minutes until they are opaque. Turn down the heat to medium-low, toss in the garlic, and stir for about one minute. Then, add the rice and stir until it's been coated with the mixture of the sausage juices and olive oil. Then throw in the peas and the smoked paprika and stir it all around the pan. Once that is done take your spoon and arrange the sausage, rice, and peas spaced around the pan. (When you serve, you want every scoop to have a little bit of everything.) Now, evenly cover the surface of the rice and other 26
• 1 lb peeled and de-veined shrimp • 1 sweet red pepper cut into thin strips
• serve with lemon wedges
ingredients with the shrimp and sliced sweet red pepper. Feel free to even place them around the outside of the surface in the pan, followed by a sprinkle salt and cayenne. Turn your heat on the skillet to high. Once you hear it start to sizzle — and you will hear it — pour in 2 cups of your saffron shrimp stock. Ensure the stock is still hot and hasn't cooled. Once the stock is in the pan, give it a little shake, make sure everything is looking good, and then place it in the center of your oven for 20 minutes. Once the liquid is completely cooked and absorbed, your dish may be done. However, I have never found it to be completely cooked. The rice will probably still be a little wet and about 90 percent cooked. Don't despair. Turn your stove top to medium-high and cook off the remaining liquid to finish steaming the rice (usually 2-3 minutes). To serve, lightly drizzle with olive oil, and top with chopped parsley. (Serves 4) AMERICAN ETHANOL THE MAGAZINE
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