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ND Ethanol Spring 2014

A Joint Publication of the North Dakota Ethanol Council and North Dakota Ethanol Producers Association

Comments submitted to EPA NDEC was one of the thousands of ethanol supporters that submitted comments to EPA during its 60-day comment period on the proposed reductions in the 2014 Renewable Volume Obligations (RVOs). The agency received well over 16,000 comments on the proposal and is anticipating a final rule this summer. NDEC reached out to its plants, investors, vendors, corn growers, economic development officials,

Department of Agriculture, Department of Commerce, agriculture commodity groups, ND Implement Dealers Association, ND Agriculture Association and others to encourage submission of comments. THANK YOU to those of you who took the time to submit. As you are well aware, the RFS is critical to North Dakota, the nation, and the future of our energy and agriculture sectors.

Golf scramble to be held July 14 Contact Information

Deana Wiese Executive Director PO Box 1091 Bismarck, ND 58502 701-355-4458

Mark your calendar! The NDEPA PAC Golf Scramble will be held Monday, July 14, from 11 a.m. – 7 p.m. at the Oxbow Golf and Country Club near Fargo. Watch your inbox for sponsorship and registration information.

Farm Bill signed The 2014 Farm Bill was signed by President Obama on Feb. 4. The bill reauthorizes agriculture subsidies, rural conservation, federal nutrition assistance and energy-related provisions over the next five years. The bill also provides mandatory funding for rural renewable energy programs. The new agreement calls for nearly $900 million in mandatory funding for ethanol-friendly provisions including: • Rural Energy for America Program (REAP) - $500 million • Biorefinery Assistance Program - $200 million • Biomass Crop Assistance Program (BCAP) - $125 million • Bioenergy for Advanced Biofuels - $75 million Although the bill doesn’t reauthorize blender pump funding through the REAP program, Senator Hoeven has reassured the NDEC that USDA does retain the ability to fund blender pumps through other programs already in place.

Efforts underway to increase DDGS use Representatives from North Dakota’s ethanol industry, Department of Agriculture, Department of Commerce, North Dakota State University and Stockmen’s Association met in November to discuss ways to increase use of DDGS within the state. Roadblocks and opportunities to grow animal agriculture, specifically dairy and feeding operations, were identified. Issues include labor, local zoning and anti-corporate farming and foreign land ownership laws. In addition, most state incentive programs are for private sector business, which production agriculture is not categorized as. The group agreed to explore the successful livestock development model that has been implemented by South Dakota. In addition, NDEC will work with North Dakota State University on updating its DDGS publications and will partner with the Stockmen’s Association on an editorial series in the North Dakota Stockmen to educate beef producers on the value of DDGS.

Congressional members are recognized Last fall, each member of North Dakota’s congressional delegation was recognized for their support of the ethanol industry by receiving the Fueling Growth Award from Growth Energy. North Dakota’s ethanol industry would like to thank the congressional delegation for its ongoing support of the industry.


NDEPA Board of Directors Randy Schneider, President 701-426-4994 Mick Miller, Vice President 701-202-1683 Jeff Zueger, Secretary 701-442-7501

NDEC Members Jeff Zueger, Chairman Midwest AgEnergy Group Underwood, ND 701-442-7501 Neil Crocker Hankinson Renewable Energy Hankinson, ND 701-242-9420 Gerald Bachmeier Red Trail Energy LLC Richardton, ND 701-974-3308 Ryan Thorpe Tharaldson Ethanol Plant Casselton, ND 701-347-4000

E15 sales strong E15 has been available at six Petro Serve USA locations in Bismarck, Mandan, West Fargo and Fargo since late September. According to Petro Serve USA CEO Kent Satrang, E15 sales have exceeded expectations. “We are committed to offering our customers choice at the pump,” says Kent Satrang, CEO of Petro Serve USA. “Ethanol blends are the perfect partnership between North Dakota’s corn fields and oil fields. E15 provides a very cost-effective option for our consumers.” Jeff Zueger, COO of Midwest E15 is approved by the U.S. Environmental AgEnergy Group and chairman Protection Agency for all 2001 and newer cars of NDEC, fills with E15 at and light-duty vehicles, as well as flex fuel vehicles. Petro Serve USA in Bismarck. These vehicles make up 75 percent of the lightduty vehicles on the road today, representing more than 85 percent of the unleaded fuel sold in the nation. “E15 underwent more testing than any automotive fuel previously introduced into commerce, so it is certainly a safe option for 2001 and newer vehicles,” says Jeff Zueger, COO of Midwest AgEnergy Group and chairman of the NDEC. “Ethanol burns cleaner and cooler in engines, which helps the performance level of the vehicle. It also can extend the life of the engine.” “NASCAR has driven more than five million miles on Sunoco Green E15. This speaks volumes to the performance level of the proven fuel,” says Tom Lilja, executive director of the ND Corn Growers Association. “North Dakota is lucky to be one of the few states offering E15. Ethanol blends are good for the economy, environment and energy independence.” NDEC continues to work with other partners and retailers to increase the offering of E15 in the state.

Flex Fuel lawn mower available John Deere now has the Z925M Flex Fuel, a commercial mower that is compatible with ethanol blends up to E85. “When we introduced the new line of ZTrak mowers last year, our intent was to meet the needs of every customer,” said Steve Wilhelmi, John Deere tactical marketing manager. “The new Z925M Flex Fuel model continues that mission by appealing to customers who need or prefer to run on alternative-fuel platforms.” The flex fuel model is part of the M Series of ZTrak commercial mowers, designed for customers seeking productivity and efficiency. With a 24.6 hp electronic fuel injected engine, the Z925M Flex Fuel can run on any blend of ethanol-mixed fuel, up to E85, and it has a top speed of 10 mph. Offered in 54- and 60-inch widths, it comes equipped with a 7-Iron™ deck for maximum durability.


Thanks to the NDEPA Associate Members for their support of ND’s ethanol industry. Ag Country Farm Credit Services American Coalition for Ethanol Bank of North Dakota Bismarck State College Border States Electric Challenger Industries Inc. Christianson & Associates PLLP Dakota Staffing Solutions Dakota, Missouri Valley & Western Railroad Inc. Eco-Energy Inc. Eide Bailly LLP Energetix LLC Ethanol Producers and Consumers Farstad Oil Inc. FC Stone LLC Fremont Industries Inc. Great Plains Tech Services Great River Energy Growth Energy ICM Jamestown Stutsman Development Corporation Lallemand Biofuels & Distilled Spirits McC Inc. McLean Electric Cooperative Miller Insulation Company Inc. Montana Dakota Utilities ND Alliance for Renewable Energy ND Corn Growers Association ND Department of Commerce ND Petroleum Marketers Association North Dakota Association of Rural Electric Cooperatives North Dakota Grain Inspection Northern Improvement Company Red River Valley & Western Railroad Roughrider Transport U.S. Water Services Univar Vogelbrusch USA Inc. Interested in becoming an associate member? Contact Deana at 701-355-4458.

Ethanol pioneer Harold Newman dies Courtesy of the Ethanol Producer Magazine Harold Newman, a pioneer in the ethanol world and a North Dakota businessman, died Feb. 20 at his home in Jamestown, N.D. He was 80 years old. “He was a visionary and a risk taker,” said Larry Johnson of LLJ Consulting and Business Development, who knew Newman from the early days of the ethanol industry in the early 1980s, a time when everybody in the ethanol industry was a risk taker. Johnson added that Newman was innovative and a very devoted and sometimes impatient supporter of the ethanol industry. Photo courtesy of Grand Forks Herald Newman was a force behind ethanol in North Dakota, owning and operating Alchem ethanol plant, a 10.5 MMgy legacy ethanol plant at Grafton, N.D. The plant closed in 2007 and was ultimately dismantled. It started out as a potato flake plant and began producing 3.5 MMgy of fuel ethanol in 1983. The capacity was up to 10.5 MMgy in 2007, but was only producing 8.5 MMgy. Newman didn’t leave the ethanol scene, however. His family is behind Tharaldson Ethanol, a 153 MMgy plant in Casselton, N.D. And, he was one of the early promoters behind an ethanol plant for the Jamestown, N.D., area. Although that project wasn’t ultimately completed, his work was acknowledged last spring at the groundbreaking for Dakota Spirit AgriEnergy, the 65 MMgy corn-ethanol plant under construction at Spiritwood, N.D. The $155 million facility is a project of Midwest AgEnergy Group, owned by Great River Energy. He also founded Newman Signs in 1956. The business grew from him painting signs in his mother-in-law’s garage to pay for his college tuition to a multi-million dollar business based in Jamestown, with locations in four other North Dakota cities and two in New Mexico. According to the company website, Newman Signs has acquired close to three dozen sign companies since 1972.


Spring 2014  
Spring 2014