# Climate of Opportunity

A C C E L E R A T I N G I N D U S T R Y

2 0 1 2 E T H A N O L I N D U S T R Y O U T L O O K

# RFA b oard of Di r e c t ors

Chuck Woodside, Chairman KAAPA Ethanol, LLC www.kaapaethanol.com
Neill McKinstray, Vice Chairman The Andersons Inc. www.andersonsinc.com
Walter Wendland, Secretary Golden Grain Energy, LLC www.goldengrainenergy.com
Randall Doyal, Treasurer Al-Corn Clean Fuel www.al-corn.com

Bob Dinneen, President Renewable Fuels Association www.ethanolrfa.org
Abengoa Bioenergy Corp. Chris Standlee www.abengoabioenergy.com

ABE South Dakota, LLC Richard Peterson www.advancedbioenergy.com
Absolute Energy, LLC Rick Schwarck www.absenergy.org

Ace Ethanol, LLC Bob Sather www.aceethanol.com
Adkins Energy, LLC Scott Trainum www.adkinsenergy.com

Aemetis, Inc. Eric McAfee www.aemetis.com

Archer Daniels Midland Co. Matt Bruns www.admworld.com
Aventine Renewable Energy Holdings, LLC John Castle www.aventinerei.com
Big River Resources West Burlington, LLC Raymond Defenbaugh www.bigriverresources.com

Central Indiana Ethanol, LLC Gary Drook www.cie.us
Central MN Ethanol Coop Dana Persson www.centralmnethanol.com Chippewa Valley Ethanol Co. Mike Jerke

www.cvec.com Commonwealth Agri-Energy, LLC Mick Henderson www.commonwealthagrienergy.com

Coskata, Inc. Loula Merkel www.coskata.com

Dakota Ethanol, LLC Scott Mundt www.dakotaethanol.com

Didion Ethanol, LLC John Didion www.didionmilling.com
East Kansas Agri-Energy, LLC Steven Gardner www.ekaellc.com

GEVO Jack Huttner www.gevo.com Glacial Lakes Energy, LLC Jim Seurer www.glaciallakesenergy.com
Granite Falls Energy, LLC Tracey Olson www.granitefallsenergy.com

GTL Resources USA Inc. Richard Ruebe www.gtlresources.com
Guardian Energy, LLC Don Gales www.guardiannrg.com

Guardian Lima, LLC Don Gales www.guardianlima.com

Heartland Corn Products Ben Brown
Homeland Energy Solutions, LLC Jim Boeding www.homelandenergysolutions.com
Lincolnland Agri-Energy, LLC Eric Mosbey www.lincolnlandagrienergy.com

Little Sioux Corn Processors, LP Steve Roe www.littlesiouxcornprocessors.com

Mascoma Bill Brady www.Mascoma.com Merrick & Company Steven Wagner www.merrick.com
Mid America Bio Energy and Commodities, LLC Robert Lundeen www.standard-ethanol.com
Mid-Missouri Energy, Inc. Ryland Utlaut www.midmissourienergy.com
New Energy Corp., Inc. Todd Allsop

Pacific Ethanol Inc. Neil Koehler www.pacificethanol.net

Parallel Products Jim Rottman www.parallelproducts.com

Patriot Renewable Fuels, LLC Gene Griffith www.patriotrenewablefuels.com

Penford Products Co. Kevin Keiser www.penfordproducts.com

Platinum Ethanol, LLC Nick Bowdish www.platinumethanol.com
Plymouth Energy, LLC Eamonn Byrne www.plymouth-energy.com
Quad County Corn Processors Delayne Johnson www.quad-county.com
Reeve Agri Energy, Inc. Lee Reeve

Siouxland Ethanol LLC Chuck Hofland www.siouxlandethanol.com
Tate & Lyle Tim Meinhold www.tateandlyle.com
Trenton Agri Products, LLC Charles Wilson www.trentonagriproducts.com
Western New York Energy, LLC Michael Sawyer www.wnyenergy.com 

## Associate Members
AgMotion, Inc. www.agmotion.com AGRA Industries, Inc. www.agraind.com Agri-Fine Corporation www.agri-fine.com AgStar Financial Services www.agstar.com Alfa Laval, Inc. www.alfalaval.com Barr Engineering Company www.barr.com BBI International www.bbibiofuels.com BetaTec Hop Products, A Division of John I Haas, Inc. www.betatechopproducts.com Bosselman Energy www.bosselmanenergy.com BrownWinick www.brownwinick.com Carl Marks Advisory Group www.carlmarks.com CH2M Hill www.ch2m.com Christianson & Associates, PLLP www.christiansoncpa.com
CHS Inc. www.chsinc.com
CIMA Green www.cimagreen.com CoBank www.cobank.com Codexis, Inc. www.codexis.com Consolidated Grain & Barge Co. www.cgb.com CSX Transportation
www.csx.com Dorsey & Whitney, LLP www.dorsey.com Eco-Energy, Inc. www.eco-energyinc.com Fagen, Inc. www.fageninc.com Farm Credit Bank of Texas www.farmcreditbank.com Farm Credit Services of America www.fcsamerica.com FCStone, LLC www.intlfcstone.com Fermentis - S.I. Lesaffre www.fermentis.com Fremont Industries, Inc. www.fremontind.com G Cube Insurance Services www.gcube-insurance.com Gavilon, LLC www.gavilon.com Genencor, A Danisco Division www.genencor.com Gold Eagle Co. www.goldeagle.com Growmark, Inc. www.growmark.com Hawkeye Gold www.hawkgold.com Husch Blackwell, LLP www.huschblackwell.com Hydro-Klean, Inc. www.hydro-klean.com Illinois Corn Marketing Board www.ilcorn.org Indiana Corn Marketing Council www.incorn.org Innospec Fuel Specialties www.innospecinc.com Iowa Corn Growers Association www.iowacorn.org Iowa Renewable Fuels Association www.iowarfa.org KATZEN International, Inc. www.katzen.com Kenan Advantage Group, Inc. www.thekag.com Kentucky Corn Promotion Council www.KYCorn.org Kinder Morgan Inc. www.kne.com Lallemand Ethanol Technology www.ethanoltech.com Lansing Ethanol Services, LLC www.lansingtradegroup.com Leonard, Street and Deinard www.leonard.com Lincoln Energy Solutions www.lincolnenergysolutions.com LLL Holdings, Inc. www.LLLTransport.com M-Pact BioFuels, LLC www.mpactbiofuels.com Midwest Laboratories, Inc. www.midwestlabs.com
Monsanto www.monsanto.com Motiva Enterprises LLC www.motivaenterprises.com Murex, N.A., Ltd. www.murexltd.com Nalco Company www.Nalco.com National Corn Growers Association www.ncga.com National Grain Sorghum Producers www.sorghumgrowers.com Natural Resource Group www.nrginc.com Nebraska Corn Board www.nebraskacorn.org Noble Americas Corp. www.thisisnoble.com NorFalco Inc. www.norfalco.com North American Bioproducts Corp. www.na-bio.com North Dakota Corn Council www.ndcorn.org Novozymes North America, Inc. www.novozymes.com PhibroChem www.phibrochem.com Pinnacle Engineering Inc. www.pineng.com Pioneer, A DuPont Company www.pioneer.com PRX Geographic, Inc. www.prxgeo.com Renewable Products Marketing Group www.rpmgllc.com RSM McGladrey www.mcgladrey.com
SGS www.sgs.com Sojitz Corporation of America www.Us.Sojitz.com Syngenta www.syngenta.com TMO Renewables LTD www.tmo-group.com TransMontaigne Product Services www.transmontaigne.com TranSystems www.transystems.com Trinity Rail Group, LLC www.trinityrail.com U.S. Development Group www.us-dev.com Union Pacific Railroad www.up.com Union Tank Car Company www.utlx.com
Verenium www.verenium.com Victaulic www.victaulic.com
Weaver www.weaverllp.com Western Ethanol Company, LLC www.westernethanol.com 

## Supporting Members
Agricultural Retailers Association www.aradc.org Angelina College www.angelina.edu Bemidji (MN) State University www.bemidjistate.edu Bismarck State College www.bsc.nodak.edu Colorado Farm Bureau www.colofb.com Corn Marketing Program of Michigan www.micorn.org Distillers Grains Technology Council www.distillersgrains.org Downstream Alternatives Ethanol Producers and Consumers www.ethanolmt.org Great Falls Development Authority, Inc. www.gfdevelopment.org Iowa Central Community College www.iccc.cc.ia.us Iowa Central Fuel Testing Laboratory www.iowafuellab.com Jamestown/Stutsman Development Corp. www.growingjamestown.com Kansas Association of Ethanol Processors www.ethanolkansas.org Kentucky Energy & Environment Cabinet – Department for Energy www.eec.ky.gov Maryland Grain Producers Utilization Board www.marylandgrain.com Michigan State University – Department of Agricultural Economics www.aec.msu.edu Milano the New School www.newschool.edu/milano Minnesota Biofuels Association www.MNBiofuels.org
Minnesota Corn Growers Association www.mncorn.org Minnesota Department of Agriculture www.mda.state.mn.us Mississippi State University – Department of Forestry www.cfr.msstate.edu/forestry
Missouri Corn Growers Association www.mocorn.org Morton College www.morton.edu National Corn-to-Ethanol Research Center www.ethanolresearch.com Nebraska Corn Growers Association www.necga.org New Jersey Gasoline C-Store Automotive Association (NJGCA) www.njgca.org Ohio Corn Marketing Program www.ohiocorn.org
REDDI www.reddionline.org South Dakota Corn Growers Association www.sdcorn.org Southeastern Illinois College www.sic.edu Steele-Waseca Cooperative Electric www.swce.coop Sugar Processing Research Institute www.spriinc.org Texas Renewable Energy Industries Association www.treia.org United Association www.ua.org Water Assurance Technology Energy Resources www.waterc3.com Western Iowa Tech Community College – The National Boiler Training and Renewable Fuels Institute www.boiler.witcc.com Western Petroleum Co. www.westernpetro.com Wisconsin Pipe Trades Association www.wipipetrades.org

2012 Ethanol Industry OUTLOOK > < 351 2010 Ethanol Industry OUTLOOK 

# F riends 

# , America is blessed with a bounty of resources that have allowed it to become the respected, leading force it is today. One of our greatest resources is the boundless reservoir of innovative, creative entrepreneurship that is changing the way the world works. A shining example of this resource in action is our continually growing and evolving domestic ethanol industry. The emergence of the domestic ethanol industry as a force in the nation’s motor fuel market has never been more apparent than in 2011. With nearly 14 billion gallons of production, ethanol is now ten percent of America’s fuel supply and 25 percent of all the motor fuel pro

duced from domestic resources. The growth of the domestic industry is having concrete impacts on everyday Americans. It is helping more than 400,000 of our friends and neighbors find work or keep the job they have. It is a $43 billion industry that contributes more than $8 billion in taxes to state, federal, and local governments. And, it has lowered the price of gasoline by more than $0.25 per gallon on average over the past decade. These benefits are impressive in their own right, but America’s ethanol industry has only just begun. Driven by innovation, existing ethanol producers are improving the processes by which they make ethanol today. They are utilizing less energy and water to produce increasing amounts of ethanol from the same bushel of grain. Additionally, they are producing an ever-in

creasing and valuable supply of livestock feed that is feeding herds and flocks across the nation and around the world. Simultaneously, these incubators of innovation are discovering new bio-based co-products that can be used to supplant petroleum in the production of other products such as diesel fuel, plastics, chemicals, and lubricants. The evolution of existing ethanol production is just part of the story. Dozens of companies are rapidly proving out new technologies that will turn America’s waste products – garbage, woodchips, ag residue, corn stover, and more – into renewable fuel and other bio-based products. Many of these innovators have pilot and demonstration level projects already producing fuel. And, a handful have commercial scale facilities under development and construction from Oregon to Iowa to Alabama to Massachusetts. As technologies evolve, so too must the marketplace for ethanol. New fuel blends, like E15, E20, and E30, together with more familiar blends like E85 must be made available. Through the expanded installation of blender pumps and a greater proliferation of flex fuel vehicles, higher level ethanol blends will give consumers a real choice at the pump while making America less vulnerable to the vagaries of the world oil market. While an expanded and growing domestic market is a clear priority for American ethanol producers, maximizing export opportunities for both fuel and feed will be important to the continued success and growth of domestic ethanol production. In 2011, American ethanol producers filled the global thirst for renewable fuels with more than one billion gallons of ethanol exports. Like domestic demand, export markets will ebb and flow. However, ensuring fair trade opportunities exist for America’s ethanol producers will be critical to our continued growth. In order to achieve the kind of growth and the level of innovation of which this industry is capable, it will take our collective ability to dream big. We must unite around a vision for the industry in which all technologies and business models have a chance to succeed. America’s ethanol industry has an opportunity to reshape the nation’s energy future and reestablish American leadership in the field of energy innovation. It is up to us to seize the day. I know that we will.

Sincerely,

Bob Dinneen, President & CEO

# A Reliably E xpanding I ndustry
For much of this century, America’s ethanol producers have expanded the supply of domestic renewable fuel by leaps and bounds to meet surging domestic demand. In 2011, many of those domestic markets are being saturated as the industry dutifully works to bring E15 ethanol blends into widespread use. Nevertheless, demand for American-made ethanol is strong – both at home and abroad. As it always has, the industry has responded. Two-thousand eleven marked yet another production record for U.S. ethanol with an estimated 13.9 billion gallons of ethanol operating at 209 ethanol biorefineries located in 29 states. That is an increase from the 13.2 billion gallons of ethanol production in 2010 and up from 1.63 billion gallons in 2000. Annually, these biorefineries have the capacity for 14.9 billion gallons of production and that capacity is growing. Encouragingly, a number of the ethanol biorefineries that were temporarily closed in the aftermath of the 2008 economic collapse have been brought back into operation. Also a harbinger of things to come, the vast majority of the 209 biorefineries operating are updating technologies that are improving ethanol production, energy efficiency, and the quality of the livestock feed they produce. 

# America’s D ynamic E nergy I ndustry

I n a year dominated by talk o f 

## 20 th century technologies and f ailures o f new energy sources 

## , A merica 

## ’ s ethanol industry is once

again making concrete 

## , measurable progress in ending 

## A merica 

## ’ s addiction to imported oil 

## . F rom consistent production capacity

expansion to the implementation o f new technologies 

## , A merican ethanol producers continue to supply 

## A merica with a reliable 

## ,
renewable source o f f uel and livestock f eed 

## . U nlike more antiquated energy sources 

## , A merica 

## ’ s ethanol industry is really just

beginning to hit its stride 

## .



# T he Race to the Next Generation
Existing ethanol production in the U.S. has been and will continue to be the foundation of America’s transition away from a fossil fuel economy. Many existing ethanol biorefineries are exploring technology upgrades that will allow for the production of ethanol from a broader range of feedstocks. These so-called bolt-on technologies will allow ethanol producers to increase ethanol production by converting both grain starch and cellulosic material into fuel at the same facility. Remember, the ethanol molecule is identical no matter the feedstock. Utilizing existing piping, storage, and loading infrastructure at existing facilities may help lower the cost for the first commercial production of cellulosic and advanced ethanol. The market created by existing ethanol production is also helping pave the way for stand alone, or green field, advanced and cellulosic ethanol biorefineries. Scores of ethanol technology companies are already into the demonstration phase of production, proving that technologies that convert everything from corn stalks to grasses to garbage to algae into ethanol are viable. Importantly, many of these companies are beginning to break ground on commercial-scale biorefineries that will provide tens of millions of gallons of ethanol from a wider range of feedstocks. All of these technological innovations, together with the development of other biofuel molecules, can break America’s addiction to oil, put hundreds of thousands of Americans to work, and help secure a healthier environment for future generations.



### U.S. E t h an o l BI Ore f inery l o cati o ns RI VT

NJ

DE

DC CT NH

MA

MD ID

NM AZ CA OR

NV WA
MT ND

WI

LA TX CO UT WY SD

NE

KS

OK AR MO IA

FL MI NY

PA

WV VA

NC

SC

GA AL MS IL IN OH

TN ME

Biorefineries (209) Biorefineries under construction (2) Source: Renewable Fuels Association, January 2012 20 2,000 4,000 6,000 8,000 10,000201120102009200820072006200520042003200220012000199919981997199619951994199319921991199019891988198719861985198419831982198119801752153503754306107108308458709009501,1001,2001,3501,4001,1001,3001,4001,4701,6301,7702,1302,8103,4103,9054,8556,4859,23510,93813,231

12,000 14,000

,13,900*



# HI storic U.S. fuel E thanol production U.S. E t h an o l P r o ducti o n CAPACITY BY STATE In Millions of Gallons, ordered by operating capacity

Source: Renewable Fuels Association, January 2012 

# Deman d for A merican-ma d e
ethanol is strong – both at
home an d abroa d

Source: U.S. Department of Energy/Energy Information Administration, January 2012 *EstimatedMillions of gallons Nameplate Operating Under Construction/

Expansion Total



### Iowa 3,625.0 3,625.0 115 3,740.0 Nebraska 2,108.0 1,973.0 0 2,108.0 Illinois 1,486.0 1,486.0 0 1,486.0
Minnesota 1,147.1 1,129.1 0 1,147.1 Indiana 1,147.0 1,147.0 0 1,147.0 South Dakota 1,009.0 1,009.0 0 1,009.0
Wisconsin 504.0 504.0 0 504.0 Ohio 538.0 478.0 0 538.0
Kansas 491.5 411.5 25 516.5 North Dakota 393.0 383.0 0 393.0
Texas 355.0 315.0 0 355.0 Michigan 268.0 268.0 0 268.0
Missouri 251.0 251.0 0 251.0
Tennessee 225.0 225.0 0 225.0 California 254.5 178.0 0 254.5 New York 164.0 164.0 0 164.0 Colorado 125.0 125.0 0 125.0 Georgia 100.4 100.4 0 100.4
Arizona 55.0 55.0 0 55.0 Idaho 54.0 54.0 0 54.0 Mississippi 54.0 54.0 0 54.0 Oregon 149.0 41.0 0 149.0 Kentucky 35.4 35.4 0 35.4 Wyoming 11.5 11.5 0 11.5
Louisiana 1.5 1.5 0 1.5
New Mexico 30.0 0 0 30.0 North Carolina 60 0 0 0 Pennsylvania 110.0 0 0 110.0 Virginia 65.0 0 0 65.0 Total 14,906.9 14,114.4 140 15,046.9

2012 Ethanol Industry O UTL OO K > < 3

### specifically, ethanol producers provided 35.7 million metric tons of distillers grains, 2.9 million tons of corn gluten feed, and 0.6 million tons of corn gluten meal. For perspective, that is considerably more feed production than the amount of grain used at all cattle feedlots across the country. Interestingly, advances in ethanol production technologies are yielding additional co-products as well. According to RFA analysis, 40% of the nation’s ethanol biorefineries are capturing corn oil during the ethanol production process and selling that oil into the feed market, as well as biodiesel and other chemical markets. All told, U.S. ethanol producers supplied an estimated 1.5 billion pounds of corn oil in 2011. 

# O ne Kernel, E ndless Possibilities
The production of ethanol in the U.S. has become a multi-faceted endeavor. Capturing the headlines is the 13.9 billion gallons of ethanol production annually. But equally important, America’s ethanol producers are supplying increasing volumes of distillers grains and other livestock feed products. Using industry averages for productivity and efficiency, U.S. ethanol biorefineries used 5 billion gross bushels of corn in 2011. Those bushels yielded 13.9 billion gallons of ethanol and more than 39 million metric tons of livestock feed. More 

# From Farm to Feed and Fuel

E thanol has become the most important value 

## - added market f or 

## A merican f armers 

## . I n addition to leading the world in f uel

ethanol production 

## , A merica 

## ’ s ethanol industry is also one o f the largest suppliers o f f eed in the world 

## . F rom f eedlots in 

## K ansas

to hog f arms in 

## C hina 

## , A merican ethanol livestock f eed products 

## – the largest o f which is known as distillers grains 

## – are

providing much needed protein 

## , f iber 

## , vitamins and other nutrients to livestock f locks and herds around the globe 

## .

DISTILLERS GRAINS EXP O RTS

2011* 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 9,000,000 8,500,000 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000

500,000Metric Tons



### Source: USDA-FAS *EstimatedThousand Metric Tons

11-12* 10-11 09-10 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01 99-00 98-99 97-98 96-97 95-96 94-95 93-94 92-93 91-92 90-91 40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Distillers Grains Corn Gluten Feed Corn Gluten Meal



### PR O DUCTI O N OF U. s . E t h an o l Feed c o- pr o ducts

Source: RFA *Estimated

4

### Source: USDA-FAS *Estimated 

### DISTILLERS GRAINS C O NSUMPTI O N BY SPECIES, 2011*

Source: CHS and RFA *Estimated Dairy 32%

Beef 48% Swine 11% Poultry 8% Other 1% 

### N et Co rn U se , 2011*

Feed & Residual 4,600, 34%

Ethanol Feed Co-Products 1,562.5, 12% Export 1,600, 12%

Non-Ethanol FSI, 1,405, 10% Ending Stocks 848, 6%

Ethanol 3,437.5, 26% Net Total Feed Use 6,163 million bushels, 46%



### Source: USDA/OCE *Estimated 

# E thanol and C orn: B eyond the Headlines
Ethanol’s growing importance to American farmers has other end usersof corn crying foul, relying heavily on flawed assumptions and out-ofcontext statistics to denigrate ethanol production as part of America’s energy strategy. As is always the case with many of the arguments of ethanol’s critics, a careful examination of the ethanol and corn markets sheds light on the real relationship. American farmers harvested a corn crop of 12.36 billion bushels in 2011, the fourth largest crop on record. During this time, gross demand for corn from ethanol production was 5.0 billion bushels, or 40% of the total supply. Importantly, ethanol producers supplied 39.4 million metric tons of livestock feed. When this feed production is factored back into the corn supply, the true measure of ethanol’s corn demand is 3.5 billion bushels – 26% of the total supply. Importantly, a recent USDA report concluded that one metric ton of distillers grains displaced 1.2 metric tons of the traditional corn and soybean livestock feed ration. Globally, U.S. ethanol production represents just a sliver of total grain demand. Using the same calculations, U.S. ethanol production utilizes just 3.2% of all grain supplies worldwide. These facts indisputably refute the contention that ethanol production is utilizing unreasonable amounts of corn. Rather, without the demand for corn brought by ethanol production, it is unlikely farmers would be supplying record or near-record crops each and every year. 

## FACT: One bushel of corn yields 2.8 gallons of ethanol and17.5 pounds of livestock feed in a dry mill. Dry mill plants extracting corn oil also produce about 0.5 pounds of corn oil per bushel, while wet mills produce 1.5 pounds of corn oil per bushel. Fully one-third of every bushel of corn is returned to livestock feed and other markets.

2012 Ethanol Industry O UTL OO K > < 5 

### (Million bushels, % of total use)

# D riving Job C reation
The economic impact of domestic ethanol production is felt far outside the gates of the ethanol biorefinery. In hundreds of communities across the nation, ethanol production is creating well paying jobs in areas where jobs are too often few and far between. According to analysis from economic research firm Cardno ENTRIX, the production of 13.9 billion gallons of ethanol supported 90,200 direct jobs and 311,400 indirect jobs all across the country. These are quality jobs in fields like engineering, chemistry, and accounting that provide a good wage and important benefits. Jobs in domestic renewable fuels production are just that – all-American jobs. Unlike outsourcing our oil needs to jobs in Saudi Arabia, Venezuela, or Canada, domestic ethanol production creates jobs that cannot be sent overseas. 

# A merica continues to struggle through an economic malaise that has gripped the globe 

## . M illions o f 

## A mericans remain

unemployed or underemployed 

## . Y et



## , in many states with ethanol production f acilities 

## , economies have held their own 

## . M any o f

these states represent large 

## , rural populations that are o f ten the f irst to f eel economic pain and the last to recover 

## . I n domestic

ethanol production 

## , these states and communities have f ound an economic engine on which they 

## , and the nation 

## , can rely 

## .



# E xpanding E conomic O pportunity
Ethanol production in the U.S. represents a true bright spot in the U.S. economy. According to the Cardno ENTRIX analysis, America’s ethanol industry added $42.4 billion to the national Gross Domestic Product, or GDP. This is no small feat, yet it is quite understandable. The production of ethanol, distillers grains, corn oil, and other products at the nation’s ethanol biorefineries create tens of billions of dollars in value. Moreover, the value-added market for grains and other feedstocks helped strengthen those markets for farmers, providing a shot in the arm for Main Streets all across America. Additionally, these products represent a growing export opportunity. More than one billion gallons of ethanol and 8 million metric tons of livestock feed produced at American ethanol biorefineries found markets overseas. These exports represented billions of dollars in new economic opportunity and does not include the $49.7 billion saved in foreign oil imports as a result of our use of domestic ethanol.



# C reating New O pportunities
The rapid rate of innovation and evolution within American ethanol production is bringing new technologies to the market that will increase efficiencies, create new markets for energy crops and waste materials, and employ hundreds of thousands of Americans in innovative new careers, creating a wide range of biofuels using a wide range of sources. For example, the Abengoa Bioenergy cellulosic ethanol biorefinery under construction in Hutchinson, Kansas, will employ 300 people during construction and 65 full time employees once operational. Other projects and technologies are nearing commercialization that will add value to existing ethanol production and create exciting new economic and career opportunities

in a broad spectrum of bio-based applications like fuels, chemicals, and pharmaceuticals. 

# Jobs and E conomic O pportunity

FACT: The production of 13.9 billion gallons of ethanol in 2011 created real, measurable economic opportunity, including: - 90,200 direct jobs - 311,400 indirect and induced jobs - $42.4 billion contribution to GDP - $29.9 billion in household income

(Source: Contribution of Ethanol to the Economy of the United States 2011, Cardno ENTRIX, February 2012.)

6

# Guardian Lima, LLC
Even with a national economy still sputtering, America’s ethanol industry continues to innovate and evolve. A perfect example is the resurrection of a failed ethanol facility in Lima, Ohio. This 54-million gallon per year facility was purchased, reconstructed, and is now open for business. More than 600 applications came in to fill the 33 full time jobs at the biorefinery. For a town of nearly 40,000 people, this means a great deal.

**SP T LIGHT** 

2012 Ethanol Industry O UTL OO K > < 7

# More E thanol, Less O il
It is simple enough to understand: With ethanol representing ten percent of the nation’s motor fuel supply, less petroleum must be refined to meet America’s fuel needs. Unfortunately, many do not fully appreciate the impact of domestic ethanol production. With 13.9 billion gallons of domestic ethanol production, America required 485 million fewer barrels of imported oil. For perspective, that is a total greater than all the oil we import from Saudi Arabia. More importantly, ethanol is helping to permanently reduce America’s reliance on foreign oil. According to the Energy Information Administration (EIA), America’s net foreign petroleum dependence peaked in 2005 at just over 60% - the same year the federal renewable fuels standard was enacted. In the seven years since, the increased use of domestic, renewable fuels has been a major force in reducing our net foreign petroleum dependence to under 50%. Perhaps even more interesting is the fact that ethanol now represents 25% of all the fuel for gasoline engines that is refined and produced from domestic sources. This not only frees up American oil supplies for use in other markets, it also helps to relieve some pressure on the need to dangerously exploit every possible source of petroleum under American soil. As ethanol production innovates and evolves, greater supplies of increasingly sustainable renewable fuels will be available to displace hard to come by sources of petroleum with dangerous and not understood consequences.



# I t’s More than E nergy S ecurity
America’s addiction to foreign oil exposes very real dangers for our economy and our environment. Our continued reliance on hostile regions of the world for our energy also presents very real threats to our nation’s security. Military leaders from all branches of the armed forces and all walks of life have recognized this fact. In a recent announcement on the importance of biofuels to U.S. military operations, Secretary of the Navy Ray Mabus said, “There are great strategic reasons for moving away from fossil fuels. It’s costly. Every time the cost of a barrel of oil goes up a dollar, it costs the United States Navy $31 million in extra fuel costs. But it’s costly in more ways than just money. For every 50 convoys of gasoline we bring in, we lose a Marine. We lose a Marine, killed or wounded. That is too high a price to pay for fuel.”

F UEL F R O M D O MESTIC S O URCES FO R USE IN GAS O LINE VE H ICLES

8 

### 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 60

50

40

30

20

10

0 30 %

25 %

20 %

15 %

10 %

5 %

0 %Billion Gallons



### U.S. Ethanol Production (left axis) Gasoline from Domestic Oil Sources (left axis) Ethanol Production, as % of Domestic Fuel Production for Gasoline Vehicles (right axis)
Source: EIA and RFA *Estimated 

# E nergy S ecurity T hrough E thanol

F ew things unite 

## A merican opinion these days 

## . Y et



## , a strong majority o f 

## A mericans understand the dangers o f 

## A merica 

## ’ s

addiction to oil 

## , f oreign sources in particular 

## , and want to see 

## A merica take concrete steps to break that addiction 

## . A mericans

don 

## ’ t want pie in the sky solutions 

## , they want concrete action 

## . T his is where 

## A merican ethanol production excels 

## .

### H IST O RIC O IL IMP O RT DISPLACEMENT BY ET H AN O L

0 100 200 300 400 50020112010200920082007200620052004143170206228321364459485*



### Source: Cardno ENTRIX *EstimatedMillions of barrels annually



## There are great strategic reasons for moving away from fossil fuels. It’s costly. Every time the cost of a barrel of oil goes up a dollar, it costs the United States Navy $31 million in extra fuel costs. But it’s costly in more ways than just money. For every 50 convoys of gasoline we bring in, we lose a Marine. We lose a Marine, killed or wounded. That is too high a price to pay for fuel.

—Ray Mabus, Secretary of the Navy 

# “

” [The current energy policy] is to buy from a cartel who drives the price and go to war every few years to maintain that privilege. It is outrageous. The good news is that there is an alternative. The good old fashion American idea of introducing competition into the fuel market.
—Robert McFarlane, National Security Advisor under President Ronald Reagan 

# “

”

2012 Ethanol Industry O UTL OO K > < 9

# Fuel Market S napshot
America consumes approximately 135-140 billion gallons of gasoline a year. More than 95% of those gallons were blended with ethanol, predominantly at the E10 (ten percent ethanol) level. RFA’s efforts to update state fuel regulations helped create ethanol’s irreplaceable position in the fuel market. The saturation of the E10 marketplace has led to the need for new domestic market opportunities. A new fuel, E15 (15 percent ethanol), will be coming to pumps all across America in the months and years ahead. As it was with E10, achieving significant market penetration with E15 will take time and effort at both the federal and state level, but it must be done. A nationwide E15 market would represent nearly 20 billion gallons of annual ethanol demand. 

# Accelerating Market E volution

L ong gone are the days o f 

## “ gasohol 

## ” and the marginal role ethanol once played in 

## A merica 

## ’ s motor f uel market 

## . T oday 

## , ethanol

is ten percent o f the nation 

## ’ s gasoline supply and growing 

## . R ealizing the f ull potential o f domestic ethanol production requires

opening up new markets f or ethanol through higher ethanol blends and modernized f ueling in f rastructure with blender pumps 

## . T he market must evolve and the 

## R F A is helping lead the way 

## .

Source: RFA 

### While efforts to successfully introduce E15 to consumers are ongoing, the industry remains committed to expanding the use of all ethanol blends. Through joint industry efforts like the Blend Your Own (BYO) Ethanol campaign by RFA and the American Coalition for Ethanol, fuel marketers and retailers are being provided the necessary information to gain comfort with and ultimately install blender pumps that can dispense a wide range of ethanol blends – E10 to E30 to E85. Simultaneously, more vehicles capable of utilizing these mid- and higher level ethanol blends are needed. Flex fuel vehicles, or FFVs, represent more than 9 million vehicles out of the national vehicle fleet of some 240 million automobiles. The Big Three American automakers – General Motors, Ford, and Chrysler – have pledged to make half of all their new vehicles in 2012 as FFVs. Based upon RFA analysis, they will meet these targets. This production will put more than one million new FFVs into the market.

90% Oregon 90% Wa shington 75% Montana

65% Idaho

92% Nevada 65% Utah

80% Arizon a

70% Alaska 95% New Mexico

95% Te xa s 80%

Oklahoma 90% Kansas 90% Missour i 95% Illinoi s 95% Indian a 90% Ohio

80% We st Vi rgini a 90% Vi rgini a 95% Kentucky

80% Arkansas 85% T ennessee

95% Mississipp i 95% Alabama 85% Georgia

100% Florid a 85%

North Carolina

85% South Carolina

95% Louisiana 90% Pennsylvania 100% New Yo rk 80% Main e 90% Ve rmon t

95% New Hampshire 100% Massachusetts 100% Rhode Island

100% Wa shington DC 100% Marylan d

100% Delaware

100% New Jersey 100% Connecticu t 80% Nebraska

85% Colorado

100% California 70% Wyoming 95% North Dakota 100% Minnesota

95% Wisconsin
90% Michigan 78% Iow a 95% South Dakota

90% Hawaii 

### E10 market estimati o n , 2011

76-100%

51-75%

10

# The Ethanol Market of the Future
In order to meet our national goals of domestic renewable fuel production and energy security, investments in automotive technology and refueling infrastructure must be made. Such investments and policies that promote those investments would include:
Successful introduction of E15: Seamlessly integrating E15 into the fuel choices of Americans is critical to the success of the Renewable Fuel Standard (RFS) and the domestic ethanol industry. The RFA is leading efforts to educate stakeholders, allay consumer concerns, and update regulatory structures to allow E15 space at the pump.
Evolution of ethanol blends: Consumers deserve a choice at the pump. Providing them with a range of ethanol blends gives them the power to choose the ethanol level that works best for them. Current gas pump technology locks Americans into a predetermined choice at the pump. New technologies, like ethanol blender pumps, would allow both retailers and consumers to tailor their refueling options to include the ethanol level best suited to their needs. As America’s gas pumps are replaced, they should be replaced with blender pump technology. More on this technology and how it works can be found at www.BYOEthanol.com. Innovative Auto Engineering: Flex fuel vehicles are the surest, most cost-effective way to provide consumers the engine technology they need to utilize higher level blends. At least half of all vehicles sold, not just by American automakers, should be FFVs. Moreover, as technologies improve, ethanol direct injection engines and other breakthroughs will properly capitalize on the performance advantages of ethanol, namely ethanol’s high octane rating.

Oregon Washington Montana

Idaho

Nevada Utah

Arizona

Alaska New Mexico

Texas Oklahoma Kansas Missouri Illinois Indiana Ohio

West Virginia

Virginia Kentucky

Arkansas T ennessee

Mississippi

Alabama Georgia

Florida North Carolina

South Carolina

Louisiana Pennsylvania New York Maine Vermont

New Hampshire

Massachusetts

Rhode Island

Washington DC Maryland

Delaware

New Jersey

Connecticut Nebraska

Colorado

California Wyoming North Dakota
Minnesota

Wisconsin

Michigan

Iowa South Dakota

Hawaii 

### FFV m a rk e t conc e ntr a t i on

>300

225-300

150-225

75-150

0-75 FFV Population (Thousands)

Source: R.L. Polk & Company Vehicles in Operation Database, July 1, 2009

2012 Ethanol Industry O U T L OOK > < 11 

# the industry remains committed
to expanding the use of all
ethanol blends. 

# Creating a Market for E15 Blends

T he effec t ive and t imely in t roduc t ion of 

## E 15 blends is cri t ical t o t he fu t ure grow t h and success of 

## A merica 

## ’ s homegrown

e t hanol indus t ry 

## . A chieving widespread accep t ance and availabili t y of 

## E 15 will t ake t ime and effor t 

## . I t t ook nearly 

## 30 years

for 

## E 10 t o gain marke t sa t ura t ion 

## . W hile i t will no t t ake as long for 

## E 15, t here are cer t ain s t eps and processes t ha t mus t be

comple t ed before 

## E 15 is a widely available op t ion for consumers 

## .



# E15 Timeline:
The path to E15 began in March 2009 with the submittal of a Clean Air Act (CAA) 211(f) waiver request to the U.S. Environmental Protection Agency (EPA). After the most robust testing of any fuel in history, EPA approved the use of E15 for cars, light-duty trucks, and SUVs built since model year (MY) 2001. This approval was essential, and officially began the process of registering E15 as a fuel – a process all fuels must complete. The RFA is working with industry partners like Growth Energy to successfully register E15 as a fuel with EPA. Registration and the final approval of a misfueling mitigation plan devised by the RFA are the final federal steps in getting E15 to the market. Once completed, the focus will shift to the states where each state presents a different set of requirements in order to sell E15. Some states, like Iowa and Illinois, will be ready to move forward with E15 once federal requirements are met. Other states will take additional efforts. H



## FACT: Total miles traveled in the testing of E15 would represent 12 round trips to the Moon. E15 has been the most exhaustively tested fuel ever approved by EPA.

16 

# The Path to E15
Introducing E15 into the market is a process that is fairly clear and well understood, but it is not easy or expedient. It will require a consistent and long-term commitment. 

# Hurdles to E15?
As if the process of introducing a new fuel were not complicated enough, pending lawsuits and threats of Congressional action to stall EPA’s implementation of E15 continue to provide challenges above and beyond the known steps to introduce a new fuel. The lawsuit filed by industries opposed to E15 will move forward in 2012 and the RFA will remain engaged in the fight, defending EPA’s decision to approve E15. The RFA will also vigorously defend E15 on Capitol Hill against members of Congress seeking to slow, stall, or suffocate American renewable fuel production.



# 3 E15 Label – T he EPA has finalized the label to be used on all gasoline pumps dispensing E15 ethanol blends. 

# 3 E15 M isfueling M itigation Plan – T he R FA has submitted a M isfueling M itigation plan to EPA. In order for any retailer to offer E15, they must comply with a misfueling mitigation strategy like the one submitted by R FA. 

# 3 EPA Fuel R egistration – All new fuels must register with EPA, including the submission of health effects testing. T he R FA has worked with industry partners to compile the information necessary and will be submitting to EPA in early 2012. 

# 3 State R egulations – As it was with E10 blends, the R FA is working with state regulators to properly adjust various fuel regulations to allow for the legal sale of E15 blends. Some states, like Iowa and Illinois, are ready to allow E15 sales once all federal requirements are met. 

# 3 Point-of-Sale – T he R FA is working with retailers to address concerns over misfueling, E15 storage and other issues. N amely, the R FA is leading a group of stakeholders in developing information for retailers and others on the proper use of E15 fuel blends. T his group consists of ethanol interests as well as fuel marketers, engine manufacturers, and state regulators. 

# E15 CHECKLIST

2012 Ethanol Industry O U T L OOK > < 17 

# Ethanol in the post-VEETC world
The tax incentive for ethanol blending, known as the Volumetric Ethanol Excise Tax Credit or VEETC, expired on January 1, 2012. For its part, the ethanol industry voluntarily let the expiration happen as a maturing and evolving industry no longer needed its market demand pull. To be clear, VEETC was a highly successful incentive by any measure. It served as the underpinning of a new industry that sought to challenge the monopoly oil has on American transportation fuels. It helped create new markets for American farmers and provided them with new income opportunities that meant fewer government payments. The tax incentive has also helped to create the 401,600 jobs associated with domestic ethanol production today and reduced America’s import of oil by 485 million barrels per year. 

# Washington’s New Focus

T he dysfunc t ionali t y of our governmen t in 

## W ashing t on t oday has been well documen t ed 

## . I n a hyper 

## - par t isan environmen t

in which t he smalles t of legisla t ive or regula t ory t asks t akes t he governmen t t o t he brink of disas t er 

## , A merica 

## ’ s e t hanol indus t ry

is en t ering a new era 

## . A s t he indus t ry evolves 

## , so t oo mus t t he policies and t he focus in 

## W ashing t on t ha t help t o level t he playing

field wi t h more es t ablished energy resources like oil and na t ural gas 

## .

Increasingly, American taxpayers continue to subsidize oil companies to the tune of at least $4 billion per year despite the maturity and market domination those companies enjoy. Congress needs to level the playing field for energy technologies and eliminating these wasteful oil subsidies is the logical first step. Additionally, Congress must continue to pursue progressive tax policies that will accelerate the commercialization of new advanced and cellulosic ethanol technologies. Policies like the Production Tax Credit for cellulosic ethanol and the Accelerated Depreciation for Cellulosic Biorefineries should be extended at least through 2015 to provide stability in the rapidly changing ethanol industry. Policies like the accelerated depreciation for capital investments are ubiquitous throughout the energy sector, especially in the oil industry, and new biofuel technologies should not be discriminated against by allowing this important incentive to expire at year’s end.



## FACT: According to the Environmental Law Institute, traditional fossil fuels received more than $72 billion in subsidies from American taxpayers between 2002 and 2008. By comparison, renewable technologies received just $29 billion.

( S ource: “ E nergy S ubsidies B lack, N ot G reen, ” E nvironmental L aw Institute, 2009.)

18Calgren Renewable Fuels, LLC Pixley, CA corn 60 60 Carbon Green Bioenergy Lake Odessa, MI corn 50 50
Cardinal Ethanol Union City, IN corn 100 100 Cargill, Inc. Ft. Dodge, IA corn 115 Cargill, Inc. Eddyville, IA corn 35 35 Cargill, Inc. Blair, NE corn 195 195 Columbia River BioRefinery Clatskanie, OR corn 108 0 Center Ethanol Company. LLC Sauget, IL corn 54 54 Central Indiana Ethanol, LLC Marion, IN corn 50 50 Central MN Ethanol Coop Little Falls, MN corn 21.5 21.5
Chief Ethanol Hastings, NE corn 62 62 Chippewa Valley Ethanol Co.* Benson, MN corn 45 45 Clean Burn Fuels Raeford, NC corn 60 Commonwealth Agri-Energy, LLC* Hopkinsville, KY corn 33 33 Corn Plus, LLP* Winnebago, MN corn 49 49 Corn, LP Goldfield, IA corn 60 60 Cornhusker Energy Lexington, LLC Lexington, NE corn 40 40 Dakota Ethanol, LLC* Wentworth, SD corn 50 50
DENCOll Morris, MN corn 24 24
Didion Ethanol Cambria, WI corn 40 40 E Energy Adams, LLC Adams, NE corn 50 50 East Kansas Agri-Energy, LLC* Garnett, KS corn 35 35
ESE Alcohol Inc. Leoti, KS seed corn 1.5 1.5 Flint Hills Resources LP Menlo, IA corn 110 110
Flint Hills Resources LP Shell Rock, IA corn 110 110
Flint Hills Resources LP Fairbank, IA corn 115 115 Flint Hills Resources LP Iowa Falls, IA corn 105 105 Front Range Energy, LLC Windsor, CO corn 40 40 Gateway Ethanol Pratt, KS corn 55 0
Gevo Luverne, MN corn 21 21 Glacial Lakes Energy, LLC - Mina Mina, SD corn 100 100 Glacial Lakes Energy, LLC - Watertown* Watertown, SD corn 100 100 Golden Cheese Company of California* Corona, CA cheese whey 5 0 Golden Grain Energy, LLC* Mason City, IA corn 115 115 Grain Processing Corp. Muscatine, IA corn 20 20 Grain Processing Corp. Washington, IN corn 20 20 Granite Falls Energy, LLC* Granite Falls, MN corn 52 52 Green Plains Renewable Energy Fergus Falls, MN corn 60 60 Green Plains Renewable Energy Lakota, IA corn 100 100 Green Plains Renewable Energy Riga, MI corn 60 60 Green Plains Renewable Energy Shenandoah, IA corn 55 55 Green Plains Renewable Energy Obion, TN corn 120 120 Green Plains Renewable Energy Bluffton, IN corn 120 120 Green Plains Renewable Energy Superior, IA corn 60 60 Green Plains Renewable Energy Central City, NE corn 100 100 Green Plains Renewable Energy Ord, NE corn 55 55
GTL Resources Rochelle, IL corn 100 100 Guardian Energy Janesville, MN corn 110 110 Guardian Lima, LLC Lima, OH corn 54 54 Hankinson Renewable Energy, LLC Hankinson, ND corn 110 110
Heartland Corn Products* Winthrop, MN corn 100 100 Heron Lake BioEnergy, LLC Heron Lake, MN corn 50 50 Highwater Ethanol, LLC Lamberton, MN corn 55 55 Homeland Energy New Hampton, IA corn 100 100 Husker Ag, LLC* Plainview, NE corn 75 75 Idaho Ethanol Processing, LLC Caldwell, ID potato waste 4 4 Company Location Feedstock Nameplate Capacity (mgy) Operating Production (mgy) Under Construction/ Expansion Capacity (mgy)

Abengoa Bioenergy Corp. (Total) 323 323 Colwich, KS corn/milo

Hugoton, KS crop residue and cellulosic energy crops 25

Mt. Vernon, IN corn Madison, IL corn Ravenna, NE corn York, NE corn Portales, NM corn Absolute Energy, LLC* St. Ansgar, IA corn 115 115 ACE Ethanol, LLC Stanley, WI corn 41 41 Adkins Energy, LLC* Lena, IL corn 45 45

Advanced BioEnergy, LLC (Total) 182 182 Fairmont, NE corn Aberdeen, SD corn Huron, SD corn Aemetis Keyes, CA corn 55 55 AGP* Hastings, NE corn 52 52
Al-Corn Clean Fuel* Claremont, MN corn 45 45
Alchem Ltd. LLP Grafton, ND corn 10 0 AltraBiofuels Coshocton Ethanol, LLC Coshocton, OH corn 60 0 AltraBiofuels Phoenix Bio Industries, LLC Goshen, CA corn 31.5 0 Amaizing Energy, LLC* Denison, IA corn 55 55

Archer Daniels Midland (Total) 1,750 1,750 Cedar Rapids, IA corn Clinton, IA corn Decatur, IL corn Peoria, IL corn Marshall, MN corn Wallhalla, ND corn/barley Columbus, NE corn Arkalon Energy, LLC Liberal, KS 110 110

Aventine Renewable Energy, LLC 464 354 Pekin, IL corn Canton, IL corn Aurora East, NE corn Aurora West, NE corn Mt. Vernon, IN corn Badger State Ethanol, LLC* Monroe, WI corn 50 50 Big River Resources Boyceville, LLC Boyceville, WI corn 40 40 Big River Resources Galva, LLC Galva, IL corn 100 100 Big River Resources West Burlington, LLC* West Burlington, IA corn 100 100 Big River United Energy Dyersville, IA corn 110 110 BioFuel Energy - Buffalo Lake Energy, LLC Fairmont, MN corn 115 115 BioFuel Energy - Pioneer Trail Energy, LLC Wood River, NE corn 115 115 Bionol Clearfield Clearfield, PA corn 110 0
Blue Flint Ethanol Underwood, ND corn 50 50 Bonanza Energy, LLC Garden City, KS corn/milo 55 55 BP Biofuels North America Jennings, LA sugar cane bagasse 1.5 1.5 Bridgeport Ethanol Bridgeport, NE corn 54 54 Bunge-Ergon Vicksburg Vicksburg, MS corn 54 54 Bushmills Ethanol, Inc.* Atwater, MN corn 50 50 

# U.S. Fuel Ethanol Industry Biorefineries and Capacity Illinois Corn Processing Pekin, IL corn 90 90 Iroquois Bio-Energy Company, LLC Rensselaer, IN corn 40 40 KAAPA Ethanol, LLC* Minden, NE corn 59 59 Kansas Ethanol, LLC Lyons, KS corn 55 55 KL Process Design Group Upton, WY wood waste 1.5 1.5 Land O’ Lakes* Melrose, MN cheese whey 2.6 2.6 Levelland/Hockley County Ethanol, LLC Levelland, TX corn 40 0 Lifeline Foods, LLC Joseph, MO corn 50 50 Lincolnland Agri-Energy, LLC* Palestine, IL corn 48 48 Lincolnway Energy, LLC* Nevada, IA corn 55 55 Little Sioux Corn Processors, LLC* Marcus, IA corn 92 92 Louis Dreyfus Commodities Grand Junction, IA corn 100 100 Louis Dreyfus Commodities Norfolk, NE corn 45 45 Marquis Energy, LLC Hennepin, IL corn 100 100 Marquis Energy - Wisconsin, LLC Necedah, WI corn 50 50 Marysville Ethanol, LLC Marysville, MI corn 50 50 Merrick & Company Aurora, CO waste beer 3 3 Mid America Agri Products/Wheatland Madrid, NE corn 44 44 Mid-Missouri Energy, Inc.* Malta Bend, MO corn 50 50 Midwest Renewable Energy, LLC Sutherland, NE corn 25 25 Minnesota Energy* Buffalo Lake, MN corn 18 0 Murphy Oil Hereford, TX corn/milo 105 105 Nebraska Corn Processing, LLC Cambridge, NE corn 45 45 NEDAK Ethanol Atkinson, NE corn 44 44 Nesika Energy, LLC Scandia, KS corn 10 10 New Energy Corp. South Bend, IN corn 102 102 North Country Ethanol, LLC* Rosholt, SD corn 20 20 NuGen Energy Marion, SD corn 110 110 One Earth Energy Gibson City, IL corn 100 100 Osage Bio-Energy Hopewell, VA corn/barley 65 0 Pacific Ethanol Madera, CA corn 40 0 Pacific Ethanol Stockton, CA corn 60 60 Pacific Ethanol Burley, ID corn 50 50 Pacific Ethanol Boardman, OR corn 40 40
Parallel Products Rancho Cucamonga, CA beverage waste
Parallel Products Louisville, KY beverage waste 5.4 5.4 Patriot Renewable Fuels, LLC Annawan, IL corn 100 100 Penford Products Cedar Rapids, IA corn 45 45 Pinal Energy, LLC Maricopa, AZ corn 55 55 Pine Lake Corn Processors, LLC Steamboat Rock, IA corn 31 31 Platinum Ethanol, LLC* Arthur, IA corn 110 110 Plymouth Ethanol, LLC* Merrill, IA corn 50 50 POET Biorefining - Alexandria Alexandria, IN corn 68 68 POET Biorefining - Ashton Ashton, IA corn 56 56 POET Biorefining - Big Stone Big Stone City, SD corn 79 79 POET Biorefining - Bingham Lake Bingham Lake, MN corn 35 35 POET Biorefining - Caro Caro, MI corn 53 53 POET Biorefining - Chancellor Chancellor, SD corn 110 110 POET Biorefining - Cloverdale Cloverdale, IN corn 92 92 POET Biorefining - Coon Rapids Coon Rapids, IA corn 54 54 POET Biorefining - Corning Corning, IA corn 65 65 POET Biorefining - Emmetsburg Emmetsburg, IA corn 55 55 POET Biorefining - Fostoria Fostoria, OH corn 68 68 POET Biorefining - Glenville Albert Lea, MN corn 42 42 POET Biorefining - Gowrie Gowrie, IA corn 69 69 POET Biorefining - Hanlontown Hanlontown, IA corn 56 56 POET Biorefining - Hudson Hudson, SD corn 56 56 POET Biorefining - Jewell Jewell, IA corn 69 69 POET Biorefining - Laddonia Laddonia, MO corn 50 50 POET Biorefining - Lake Crystal Lake Crystal, MN corn 56 56 POET Biorefining - Leipsic Leipsic, OH corn 68 68 POET Biorefining - Macon Macon, MO corn 46 46 POET Biorefining - Marion Marion, OH corn 68 68 POET Biorefining - Mitchell Mitchell, SD corn 68 68 POET Biorefining - North Manchester North Manchester, IN corn 68 68 POET Biorefining - Portland Portland, IN corn 68 68 POET Biorefining - Preston Preston, MN corn 46 46 POET Biorefining - Scotland Scotland, SD corn 11 11 POET Biorefining - Groton Groton, SD corn 53 53 Prairie Horizon Agri-Energy, LLC Phillipsburg, KS corn 40 40 Quad-County Corn Processors* Galva, IA corn 30 30 Red Trail Energy, LLC Richardton, ND corn 50 50 Redfield Energy, LLC* Redfield, SD corn 50 50 Reeve Agri-Energy Garden City, KS corn/milo 12 12 Renova Energy Torrington, WY corn 10 10
Show Me Ethanol Carrollton, MO corn 55 55 Siouxland Energy & Livestock Coop* Sioux Center, IA corn 60 60 Siouxland Ethanol, LLC Jackson, NE corn 50 50 Southwest Georgia Ethanol, LLC Camilla, GA corn 100 100 Southwest Iowa Renewable Energy, LLC* Council Bluffs, IA corn 110 110 Spectrum Business Ventures, Inc. Mead, NE corn 25 0 Sterling Ethanol, LLC Sterling, CO corn 42 42 Summit Natural Energy Cornelius, OR waste sugars/starches 1 1
Sunoco Volney, NY corn 114 114 Tate & Lyle Loudon, TN corn 105 105
Tharaldson Ethanol Casselton, ND corn/milo 150 150 The Andersons Albion Ethanol, LLC Albion, MI corn 55 55 The Andersons Clymers Ethanol, LLC Clymers, IN corn 110 110 The Andersons Marathon Ethanol, LLC Greenville, OH corn 110 110 Trenton Agri Products, LLC Trenton, NE corn 40 40 United Ethanol, LLC Milton, WI corn 52 52 United WI Grain Producers, LLC* Friesland, WI corn 53 53 Utica Energy, LLC Oshkosh, WI corn 48 48
Valero Renewable Fuels Albert City, IA corn 110 110
Valero Renewable Fuels Fort Dodge, IA corn 110 110
Valero Renewable Fuels Albion, NE corn 110 110
Valero Renewable Fuels Aurora, SD corn 120 120
Valero Renewable Fuels Charles City, IA corn 110 110
Valero Renewable Fuels Welcome, MN corn 110 110
Valero Renewable Fuels Hartley, IA corn 110 110
Valero Renewable Fuels North Linden, IN corn 110 110
Valero Renewable Fuels Bloomingburg, OH corn 110 110
Valero Renewable Fuels Jefferson Junction, WI corn 130 130 Western New York Energy, LLC Shelby, NY corn 50 50 Western Plains Energy, LLC* Campus, KS corn 45 45 White Energy Russell, KS milo/wheat starch 48 48 White Energy Hereford, TX corn/milo 100 100 White Energy Plainview, TX corn 110 110 Wind Gap Farms Baconton, GA brewery waste 0.4 0.4
Yuma Ethanol Yuma, CO corn 40 40

U.S. Ca p a c ity T O TA LS 

### 14,906.9 14,114.4 140 * locally owned Updated : January 2012Calgren Renewable Fuels, LLC Pixley, CA corn 60 60 Carbon Green Bioenergy Lake Odessa, MI corn 50 50
Cardinal Ethanol Union City, IN corn 100 100 Cargill, Inc. Ft. Dodge, IA corn 115 Cargill, Inc. Eddyville, IA corn 35 35 Cargill, Inc. Blair, NE corn 195 195 Columbia River BioRefinery Clatskanie, OR corn 108 0 Center Ethanol Company. LLC Sauget, IL corn 54 54 Central Indiana Ethanol, LLC Marion, IN corn 50 50 Central MN Ethanol Coop Little Falls, MN corn 21.5 21.5
Chief Ethanol Hastings, NE corn 62 62 Chippewa Valley Ethanol Co.* Benson, MN corn 45 45 Clean Burn Fuels Raeford, NC corn 60 Commonwealth Agri-Energy, LLC* Hopkinsville, KY corn 33 33 Corn Plus, LLP* Winnebago, MN corn 49 49 Corn, LP Goldfield, IA corn 60 60 Cornhusker Energy Lexington, LLC Lexington, NE corn 40 40 Dakota Ethanol, LLC* Wentworth, SD corn 50 50
DENCOll Morris, MN corn 24 24
Didion Ethanol Cambria, WI corn 40 40 E Energy Adams, LLC Adams, NE corn 50 50 East Kansas Agri-Energy, LLC* Garnett, KS corn 35 35
ESE Alcohol Inc. Leoti, KS seed corn 1.5 1.5 Flint Hills Resources LP Menlo, IA corn 110 110
Flint Hills Resources LP Shell Rock, IA corn 110 110
Flint Hills Resources LP Fairbank, IA corn 115 115 Flint Hills Resources LP Iowa Falls, IA corn 105 105 Front Range Energy, LLC Windsor, CO corn 40 40 Gateway Ethanol Pratt, KS corn 55 0
Gevo Luverne, MN corn 21 21 Glacial Lakes Energy, LLC - Mina Mina, SD corn 100 100 Glacial Lakes Energy, LLC - Watertown* Watertown, SD corn 100 100 Golden Cheese Company of California* Corona, CA cheese whey 5 0 Golden Grain Energy, LLC* Mason City, IA corn 115 115 Grain Processing Corp. Muscatine, IA corn 20 20 Grain Processing Corp. Washington, IN corn 20 20 Granite Falls Energy, LLC* Granite Falls, MN corn 52 52 Green Plains Renewable Energy Fergus Falls, MN corn 60 60 Green Plains Renewable Energy Lakota, IA corn 100 100 Green Plains Renewable Energy Riga, MI corn 60 60 Green Plains Renewable Energy Shenandoah, IA corn 55 55 Green Plains Renewable Energy Obion, TN corn 120 120 Green Plains Renewable Energy Bluffton, IN corn 120 120 Green Plains Renewable Energy Superior, IA corn 60 60 Green Plains Renewable Energy Central City, NE corn 100 100 Green Plains Renewable Energy Ord, NE corn 55 55
GTL Resources Rochelle, IL corn 100 100 Guardian Energy Janesville, MN corn 110 110 Guardian Lima, LLC Lima, OH corn 54 54 Hankinson Renewable Energy, LLC Hankinson, ND corn 110 110
Heartland Corn Products* Winthrop, MN corn 100 100 Heron Lake BioEnergy, LLC Heron Lake, MN corn 50 50 Highwater Ethanol, LLC Lamberton, MN corn 55 55 Homeland Energy New Hampton, IA corn 100 100 Husker Ag, LLC* Plainview, NE corn 75 75 Idaho Ethanol Processing, LLC Caldwell, ID potato waste 4 4 Company Location Feedstock Nameplate Capacity (mgy) Operating Production (mgy) Under Construction/ Expansion Capacity (mgy)

Abengoa Bioenergy Corp. (Total) 323 323 Colwich, KS corn/milo

Hugoton, KS crop residue and cellulosic energy crops 25

Mt. Vernon, IN corn Madison, IL corn Ravenna, NE corn York, NE corn Portales, NM corn Absolute Energy, LLC* St. Ansgar, IA corn 115 115 ACE Ethanol, LLC Stanley, WI corn 41 41 Adkins Energy, LLC* Lena, IL corn 45 45

Advanced BioEnergy, LLC (Total) 182 182 Fairmont, NE corn Aberdeen, SD corn Huron, SD corn Aemetis Keyes, CA corn 55 55 AGP* Hastings, NE corn 52 52
Al-Corn Clean Fuel* Claremont, MN corn 45 45
Alchem Ltd. LLP Grafton, ND corn 10 0 AltraBiofuels Coshocton Ethanol, LLC Coshocton, OH corn 60 0 AltraBiofuels Phoenix Bio Industries, LLC Goshen, CA corn 31.5 0 Amaizing Energy, LLC* Denison, IA corn 55 55

Archer Daniels Midland (Total) 1,750 1,750 Cedar Rapids, IA corn Clinton, IA corn Decatur, IL corn Peoria, IL corn Marshall, MN corn Wallhalla, ND corn/barley Columbus, NE corn Arkalon Energy, LLC Liberal, KS 110 110

Aventine Renewable Energy, LLC 464 354 Pekin, IL corn Canton, IL corn Aurora East, NE corn Aurora West, NE corn Mt. Vernon, IN corn Badger State Ethanol, LLC* Monroe, WI corn 50 50 Big River Resources Boyceville, LLC Boyceville, WI corn 40 40 Big River Resources Galva, LLC Galva, IL corn 100 100 Big River Resources West Burlington, LLC* West Burlington, IA corn 100 100 Big River United Energy Dyersville, IA corn 110 110 BioFuel Energy - Buffalo Lake Energy, LLC Fairmont, MN corn 115 115 BioFuel Energy - Pioneer Trail Energy, LLC Wood River, NE corn 115 115 Bionol Clearfield Clearfield, PA corn 110 0
Blue Flint Ethanol Underwood, ND corn 50 50 Bonanza Energy, LLC Garden City, KS corn/milo 55 55 BP Biofuels North America Jennings, LA sugar cane bagasse 1.5 1.5 Bridgeport Ethanol Bridgeport, NE corn 54 54 Bunge-Ergon Vicksburg Vicksburg, MS corn 54 54 Bushmills Ethanol, Inc.* Atwater, MN corn 50 50 

# U.S. Fuel Ethanol Industry Biorefineries and Capacity Illinois Corn Processing Pekin, IL corn 90 90 Iroquois Bio-Energy Company, LLC Rensselaer, IN corn 40 40 KAAPA Ethanol, LLC* Minden, NE corn 59 59 Kansas Ethanol, LLC Lyons, KS corn 55 55 KL Process Design Group Upton, WY wood waste 1.5 1.5 Land O’ Lakes* Melrose, MN cheese whey 2.6 2.6 Levelland/Hockley County Ethanol, LLC Levelland, TX corn 40 0 Lifeline Foods, LLC Joseph, MO corn 50 50 Lincolnland Agri-Energy, LLC* Palestine, IL corn 48 48 Lincolnway Energy, LLC* Nevada, IA corn 55 55 Little Sioux Corn Processors, LLC* Marcus, IA corn 92 92 Louis Dreyfus Commodities Grand Junction, IA corn 100 100 Louis Dreyfus Commodities Norfolk, NE corn 45 45 Marquis Energy, LLC Hennepin, IL corn 100 100 Marquis Energy - Wisconsin, LLC Necedah, WI corn 50 50 Marysville Ethanol, LLC Marysville, MI corn 50 50 Merrick & Company Aurora, CO waste beer 3 3 Mid America Agri Products/Wheatland Madrid, NE corn 44 44 Mid-Missouri Energy, Inc.* Malta Bend, MO corn 50 50 Midwest Renewable Energy, LLC Sutherland, NE corn 25 25 Minnesota Energy* Buffalo Lake, MN corn 18 0 Murphy Oil Hereford, TX corn/milo 105 105 Nebraska Corn Processing, LLC Cambridge, NE corn 45 45 NEDAK Ethanol Atkinson, NE corn 44 44 Nesika Energy, LLC Scandia, KS corn 10 10 New Energy Corp. South Bend, IN corn 102 102 North Country Ethanol, LLC* Rosholt, SD corn 20 20 NuGen Energy Marion, SD corn 110 110 One Earth Energy Gibson City, IL corn 100 100 Osage Bio-Energy Hopewell, VA corn/barley 65 0 Pacific Ethanol Madera, CA corn 40 0 Pacific Ethanol Stockton, CA corn 60 60 Pacific Ethanol Burley, ID corn 50 50 Pacific Ethanol Boardman, OR corn 40 40
Parallel Products Rancho Cucamonga, CA beverage waste
Parallel Products Louisville, KY beverage waste 5.4 5.4 Patriot Renewable Fuels, LLC Annawan, IL corn 100 100 Penford Products Cedar Rapids, IA corn 45 45 Pinal Energy, LLC Maricopa, AZ corn 55 55 Pine Lake Corn Processors, LLC Steamboat Rock, IA corn 31 31 Platinum Ethanol, LLC* Arthur, IA corn 110 110 Plymouth Ethanol, LLC* Merrill, IA corn 50 50 POET Biorefining - Alexandria Alexandria, IN corn 68 68 POET Biorefining - Ashton Ashton, IA corn 56 56 POET Biorefining - Big Stone Big Stone City, SD corn 79 79 POET Biorefining - Bingham Lake Bingham Lake, MN corn 35 35 POET Biorefining - Caro Caro, MI corn 53 53 POET Biorefining - Chancellor Chancellor, SD corn 110 110 POET Biorefining - Cloverdale Cloverdale, IN corn 92 92 POET Biorefining - Coon Rapids Coon Rapids, IA corn 54 54 POET Biorefining - Corning Corning, IA corn 65 65 POET Biorefining - Emmetsburg Emmetsburg, IA corn 55 55 POET Biorefining - Fostoria Fostoria, OH corn 68 68 POET Biorefining - Glenville Albert Lea, MN corn 42 42 POET Biorefining - Gowrie Gowrie, IA corn 69 69 POET Biorefining - Hanlontown Hanlontown, IA corn 56 56 POET Biorefining - Hudson Hudson, SD corn 56 56 POET Biorefining - Jewell Jewell, IA corn 69 69 POET Biorefining - Laddonia Laddonia, MO corn 50 50 POET Biorefining - Lake Crystal Lake Crystal, MN corn 56 56 POET Biorefining - Leipsic Leipsic, OH corn 68 68 POET Biorefining - Macon Macon, MO corn 46 46 POET Biorefining - Marion Marion, OH corn 68 68 POET Biorefining - Mitchell Mitchell, SD corn 68 68 POET Biorefining - North Manchester North Manchester, IN corn 68 68 POET Biorefining - Portland Portland, IN corn 68 68 POET Biorefining - Preston Preston, MN corn 46 46 POET Biorefining - Scotland Scotland, SD corn 11 11 POET Biorefining - Groton Groton, SD corn 53 53 Prairie Horizon Agri-Energy, LLC Phillipsburg, KS corn 40 40 Quad-County Corn Processors* Galva, IA corn 30 30 Red Trail Energy, LLC Richardton, ND corn 50 50 Redfield Energy, LLC* Redfield, SD corn 50 50 Reeve Agri-Energy Garden City, KS corn/milo 12 12 Renova Energy Torrington, WY corn 10 10
Show Me Ethanol Carrollton, MO corn 55 55 Siouxland Energy & Livestock Coop* Sioux Center, IA corn 60 60 Siouxland Ethanol, LLC Jackson, NE corn 50 50 Southwest Georgia Ethanol, LLC Camilla, GA corn 100 100 Southwest Iowa Renewable Energy, LLC* Council Bluffs, IA corn 110 110 Spectrum Business Ventures, Inc. Mead, NE corn 25 0 Sterling Ethanol, LLC Sterling, CO corn 42 42 Summit Natural Energy Cornelius, OR waste sugars/starches 1 1
Sunoco Volney, NY corn 114 114 Tate & Lyle Loudon, TN corn 105 105
Tharaldson Ethanol Casselton, ND corn/milo 150 150 The Andersons Albion Ethanol, LLC Albion, MI corn 55 55 The Andersons Clymers Ethanol, LLC Clymers, IN corn 110 110 The Andersons Marathon Ethanol, LLC Greenville, OH corn 110 110 Trenton Agri Products, LLC Trenton, NE corn 40 40 United Ethanol, LLC Milton, WI corn 52 52 United WI Grain Producers, LLC* Friesland, WI corn 53 53 Utica Energy, LLC Oshkosh, WI corn 48 48
Valero Renewable Fuels Albert City, IA corn 110 110
Valero Renewable Fuels Fort Dodge, IA corn 110 110
Valero Renewable Fuels Albion, NE corn 110 110
Valero Renewable Fuels Aurora, SD corn 120 120
Valero Renewable Fuels Charles City, IA corn 110 110
Valero Renewable Fuels Welcome, MN corn 110 110
Valero Renewable Fuels Hartley, IA corn 110 110
Valero Renewable Fuels North Linden, IN corn 110 110
Valero Renewable Fuels Bloomingburg, OH corn 110 110
Valero Renewable Fuels Jefferson Junction, WI corn 130 130 Western New York Energy, LLC Shelby, NY corn 50 50 Western Plains Energy, LLC* Campus, KS corn 45 45 White Energy Russell, KS milo/wheat starch 48 48 White Energy Hereford, TX corn/milo 100 100 White Energy Plainview, TX corn 110 110 Wind Gap Farms Baconton, GA brewery waste 0.4 0.4
Yuma Ethanol Yuma, CO corn 40 40

U.S. Ca p a c ity T O TA LS 

### 14,906.9 14,114.4 140 * locally owned Updated : January 2012Calgren Renewable Fuels, LLC Pixley, CA corn 60 60 Carbon Green Bioenergy Lake Odessa, MI corn 50 50
Cardinal Ethanol Union City, IN corn 100 100 Cargill, Inc. Ft. Dodge, IA corn 115 Cargill, Inc. Eddyville, IA corn 35 35 Cargill, Inc. Blair, NE corn 195 195 Columbia River BioRefinery Clatskanie, OR corn 108 0 Center Ethanol Company. LLC Sauget, IL corn 54 54 Central Indiana Ethanol, LLC Marion, IN corn 50 50 Central MN Ethanol Coop Little Falls, MN corn 21.5 21.5
Chief Ethanol Hastings, NE corn 62 62 Chippewa Valley Ethanol Co.* Benson, MN corn 45 45 Clean Burn Fuels Raeford, NC corn 60 Commonwealth Agri-Energy, LLC* Hopkinsville, KY corn 33 33 Corn Plus, LLP* Winnebago, MN corn 49 49 Corn, LP Goldfield, IA corn 60 60 Cornhusker Energy Lexington, LLC Lexington, NE corn 40 40 Dakota Ethanol, LLC* Wentworth, SD corn 50 50
DENCOll Morris, MN corn 24 24
Didion Ethanol Cambria, WI corn 40 40 E Energy Adams, LLC Adams, NE corn 50 50 East Kansas Agri-Energy, LLC* Garnett, KS corn 35 35
ESE Alcohol Inc. Leoti, KS seed corn 1.5 1.5 Flint Hills Resources LP Menlo, IA corn 110 110
Flint Hills Resources LP Shell Rock, IA corn 110 110
Flint Hills Resources LP Fairbank, IA corn 115 115 Flint Hills Resources LP Iowa Falls, IA corn 105 105 Front Range Energy, LLC Windsor, CO corn 40 40 Gateway Ethanol Pratt, KS corn 55 0
Gevo Luverne, MN corn 21 21 Glacial Lakes Energy, LLC - Mina Mina, SD corn 100 100 Glacial Lakes Energy, LLC - Watertown* Watertown, SD corn 100 100 Golden Cheese Company of California* Corona, CA cheese whey 5 0 Golden Grain Energy, LLC* Mason City, IA corn 115 115 Grain Processing Corp. Muscatine, IA corn 20 20 Grain Processing Corp. Washington, IN corn 20 20 Granite Falls Energy, LLC* Granite Falls, MN corn 52 52 Green Plains Renewable Energy Fergus Falls, MN corn 60 60 Green Plains Renewable Energy Lakota, IA corn 100 100 Green Plains Renewable Energy Riga, MI corn 60 60 Green Plains Renewable Energy Shenandoah, IA corn 55 55 Green Plains Renewable Energy Obion, TN corn 120 120 Green Plains Renewable Energy Bluffton, IN corn 120 120 Green Plains Renewable Energy Superior, IA corn 60 60 Green Plains Renewable Energy Central City, NE corn 100 100 Green Plains Renewable Energy Ord, NE corn 55 55
GTL Resources Rochelle, IL corn 100 100 Guardian Energy Janesville, MN corn 110 110 Guardian Lima, LLC Lima, OH corn 54 54 Hankinson Renewable Energy, LLC Hankinson, ND corn 110 110
Heartland Corn Products* Winthrop, MN corn 100 100 Heron Lake BioEnergy, LLC Heron Lake, MN corn 50 50 Highwater Ethanol, LLC Lamberton, MN corn 55 55 Homeland Energy New Hampton, IA corn 100 100 Husker Ag, LLC* Plainview, NE corn 75 75 Idaho Ethanol Processing, LLC Caldwell, ID potato waste 4 4 Company Location Feedstock Nameplate Capacity (mgy) Operating Production (mgy) Under Construction/ Expansion Capacity (mgy)

Abengoa Bioenergy Corp. (Total) 323 323 Colwich, KS corn/milo

Hugoton, KS crop residue and cellulosic energy crops 25

Mt. Vernon, IN corn Madison, IL corn Ravenna, NE corn York, NE corn Portales, NM corn Absolute Energy, LLC* St. Ansgar, IA corn 115 115 ACE Ethanol, LLC Stanley, WI corn 41 41 Adkins Energy, LLC* Lena, IL corn 45 45

Advanced BioEnergy, LLC (Total) 182 182 Fairmont, NE corn Aberdeen, SD corn Huron, SD corn Aemetis Keyes, CA corn 55 55 AGP* Hastings, NE corn 52 52
Al-Corn Clean Fuel* Claremont, MN corn 45 45
Alchem Ltd. LLP Grafton, ND corn 10 0 AltraBiofuels Coshocton Ethanol, LLC Coshocton, OH corn 60 0 AltraBiofuels Phoenix Bio Industries, LLC Goshen, CA corn 31.5 0 Amaizing Energy, LLC* Denison, IA corn 55 55

Archer Daniels Midland (Total) 1,750 1,750 Cedar Rapids, IA corn Clinton, IA corn Decatur, IL corn Peoria, IL corn Marshall, MN corn Wallhalla, ND corn/barley Columbus, NE corn Arkalon Energy, LLC Liberal, KS 110 110

Aventine Renewable Energy, LLC 464 354 Pekin, IL corn Canton, IL corn Aurora East, NE corn Aurora West, NE corn Mt. Vernon, IN corn Badger State Ethanol, LLC* Monroe, WI corn 50 50 Big River Resources Boyceville, LLC Boyceville, WI corn 40 40 Big River Resources Galva, LLC Galva, IL corn 100 100 Big River Resources West Burlington, LLC* West Burlington, IA corn 100 100 Big River United Energy Dyersville, IA corn 110 110 BioFuel Energy - Buffalo Lake Energy, LLC Fairmont, MN corn 115 115 BioFuel Energy - Pioneer Trail Energy, LLC Wood River, NE corn 115 115 Bionol Clearfield Clearfield, PA corn 110 0
Blue Flint Ethanol Underwood, ND corn 50 50 Bonanza Energy, LLC Garden City, KS corn/milo 55 55 BP Biofuels North America Jennings, LA sugar cane bagasse 1.5 1.5 Bridgeport Ethanol Bridgeport, NE corn 54 54 Bunge-Ergon Vicksburg Vicksburg, MS corn 54 54 Bushmills Ethanol, Inc.* Atwater, MN corn 50 50 

# U.S. Fuel Ethanol Industry Biorefineries and Capacity Illinois Corn Processing Pekin, IL corn 90 90 Iroquois Bio-Energy Company, LLC Rensselaer, IN corn 40 40 KAAPA Ethanol, LLC* Minden, NE corn 59 59 Kansas Ethanol, LLC Lyons, KS corn 55 55 KL Process Design Group Upton, WY wood waste 1.5 1.5 Land O’ Lakes* Melrose, MN cheese whey 2.6 2.6 Levelland/Hockley County Ethanol, LLC Levelland, TX corn 40 0 Lifeline Foods, LLC Joseph, MO corn 50 50 Lincolnland Agri-Energy, LLC* Palestine, IL corn 48 48 Lincolnway Energy, LLC* Nevada, IA corn 55 55 Little Sioux Corn Processors, LLC* Marcus, IA corn 92 92 Louis Dreyfus Commodities Grand Junction, IA corn 100 100 Louis Dreyfus Commodities Norfolk, NE corn 45 45 Marquis Energy, LLC Hennepin, IL corn 100 100 Marquis Energy - Wisconsin, LLC Necedah, WI corn 50 50 Marysville Ethanol, LLC Marysville, MI corn 50 50 Merrick & Company Aurora, CO waste beer 3 3 Mid America Agri Products/Wheatland Madrid, NE corn 44 44 Mid-Missouri Energy, Inc.* Malta Bend, MO corn 50 50 Midwest Renewable Energy, LLC Sutherland, NE corn 25 25 Minnesota Energy* Buffalo Lake, MN corn 18 0 Murphy Oil Hereford, TX corn/milo 105 105 Nebraska Corn Processing, LLC Cambridge, NE corn 45 45 NEDAK Ethanol Atkinson, NE corn 44 44 Nesika Energy, LLC Scandia, KS corn 10 10 New Energy Corp. South Bend, IN corn 102 102 North Country Ethanol, LLC* Rosholt, SD corn 20 20 NuGen Energy Marion, SD corn 110 110 One Earth Energy Gibson City, IL corn 100 100 Osage Bio-Energy Hopewell, VA corn/barley 65 0 Pacific Ethanol Madera, CA corn 40 0 Pacific Ethanol Stockton, CA corn 60 60 Pacific Ethanol Burley, ID corn 50 50 Pacific Ethanol Boardman, OR corn 40 40
Parallel Products Rancho Cucamonga, CA beverage waste
Parallel Products Louisville, KY beverage waste 5.4 5.4 Patriot Renewable Fuels, LLC Annawan, IL corn 100 100 Penford Products Cedar Rapids, IA corn 45 45 Pinal Energy, LLC Maricopa, AZ corn 55 55 Pine Lake Corn Processors, LLC Steamboat Rock, IA corn 31 31 Platinum Ethanol, LLC* Arthur, IA corn 110 110 Plymouth Ethanol, LLC* Merrill, IA corn 50 50 POET Biorefining - Alexandria Alexandria, IN corn 68 68 POET Biorefining - Ashton Ashton, IA corn 56 56 POET Biorefining - Big Stone Big Stone City, SD corn 79 79 POET Biorefining - Bingham Lake Bingham Lake, MN corn 35 35 POET Biorefining - Caro Caro, MI corn 53 53 POET Biorefining - Chancellor Chancellor, SD corn 110 110 POET Biorefining - Cloverdale Cloverdale, IN corn 92 92 POET Biorefining - Coon Rapids Coon Rapids, IA corn 54 54 POET Biorefining - Corning Corning, IA corn 65 65 POET Biorefining - Emmetsburg Emmetsburg, IA corn 55 55 POET Biorefining - Fostoria Fostoria, OH corn 68 68 POET Biorefining - Glenville Albert Lea, MN corn 42 42 POET Biorefining - Gowrie Gowrie, IA corn 69 69 POET Biorefining - Hanlontown Hanlontown, IA corn 56 56 POET Biorefining - Hudson Hudson, SD corn 56 56 POET Biorefining - Jewell Jewell, IA corn 69 69 POET Biorefining - Laddonia Laddonia, MO corn 50 50 POET Biorefining - Lake Crystal Lake Crystal, MN corn 56 56 POET Biorefining - Leipsic Leipsic, OH corn 68 68 POET Biorefining - Macon Macon, MO corn 46 46 POET Biorefining - Marion Marion, OH corn 68 68 POET Biorefining - Mitchell Mitchell, SD corn 68 68 POET Biorefining - North Manchester North Manchester, IN corn 68 68 POET Biorefining - Portland Portland, IN corn 68 68 POET Biorefining - Preston Preston, MN corn 46 46 POET Biorefining - Scotland Scotland, SD corn 11 11 POET Biorefining - Groton Groton, SD corn 53 53 Prairie Horizon Agri-Energy, LLC Phillipsburg, KS corn 40 40 Quad-County Corn Processors* Galva, IA corn 30 30 Red Trail Energy, LLC Richardton, ND corn 50 50 Redfield Energy, LLC* Redfield, SD corn 50 50 Reeve Agri-Energy Garden City, KS corn/milo 12 12 Renova Energy Torrington, WY corn 10 10
Show Me Ethanol Carrollton, MO corn 55 55 Siouxland Energy & Livestock Coop* Sioux Center, IA corn 60 60 Siouxland Ethanol, LLC Jackson, NE corn 50 50 Southwest Georgia Ethanol, LLC Camilla, GA corn 100 100 Southwest Iowa Renewable Energy, LLC* Council Bluffs, IA corn 110 110 Spectrum Business Ventures, Inc. Mead, NE corn 25 0 Sterling Ethanol, LLC Sterling, CO corn 42 42 Summit Natural Energy Cornelius, OR waste sugars/starches 1 1
Sunoco Volney, NY corn 114 114 Tate & Lyle Loudon, TN corn 105 105
Tharaldson Ethanol Casselton, ND corn/milo 150 150 The Andersons Albion Ethanol, LLC Albion, MI corn 55 55 The Andersons Clymers Ethanol, LLC Clymers, IN corn 110 110 The Andersons Marathon Ethanol, LLC Greenville, OH corn 110 110 Trenton Agri Products, LLC Trenton, NE corn 40 40 United Ethanol, LLC Milton, WI corn 52 52 United WI Grain Producers, LLC* Friesland, WI corn 53 53 Utica Energy, LLC Oshkosh, WI corn 48 48
Valero Renewable Fuels Albert City, IA corn 110 110
Valero Renewable Fuels Fort Dodge, IA corn 110 110
Valero Renewable Fuels Albion, NE corn 110 110
Valero Renewable Fuels Aurora, SD corn 120 120
Valero Renewable Fuels Charles City, IA corn 110 110
Valero Renewable Fuels Welcome, MN corn 110 110
Valero Renewable Fuels Hartley, IA corn 110 110
Valero Renewable Fuels North Linden, IN corn 110 110
Valero Renewable Fuels Bloomingburg, OH corn 110 110
Valero Renewable Fuels Jefferson Junction, WI corn 130 130 Western New York Energy, LLC Shelby, NY corn 50 50 Western Plains Energy, LLC* Campus, KS corn 45 45 White Energy Russell, KS milo/wheat starch 48 48 White Energy Hereford, TX corn/milo 100 100 White Energy Plainview, TX corn 110 110 Wind Gap Farms Baconton, GA brewery waste 0.4 0.4
Yuma Ethanol Yuma, CO corn 40 40

U.S. Ca p a c ity T O TA LS 

### 14,906.9 14,114.4 140 * locally owned Updated : January 2012Calgren Renewable Fuels, LLC Pixley, CA corn 60 60 Carbon Green Bioenergy Lake Odessa, MI corn 50 50
Cardinal Ethanol Union City, IN corn 100 100 Cargill, Inc. Ft. Dodge, IA corn 115 Cargill, Inc. Eddyville, IA corn 35 35 Cargill, Inc. Blair, NE corn 195 195 Columbia River BioRefinery Clatskanie, OR corn 108 0 Center Ethanol Company. LLC Sauget, IL corn 54 54 Central Indiana Ethanol, LLC Marion, IN corn 50 50 Central MN Ethanol Coop Little Falls, MN corn 21.5 21.5
Chief Ethanol Hastings, NE corn 62 62 Chippewa Valley Ethanol Co.* Benson, MN corn 45 45 Clean Burn Fuels Raeford, NC corn 60 Commonwealth Agri-Energy, LLC* Hopkinsville, KY corn 33 33 Corn Plus, LLP* Winnebago, MN corn 49 49 Corn, LP Goldfield, IA corn 60 60 Cornhusker Energy Lexington, LLC Lexington, NE corn 40 40 Dakota Ethanol, LLC* Wentworth, SD corn 50 50
DENCOll Morris, MN corn 24 24
Didion Ethanol Cambria, WI corn 40 40 E Energy Adams, LLC Adams, NE corn 50 50 East Kansas Agri-Energy, LLC* Garnett, KS corn 35 35
ESE Alcohol Inc. Leoti, KS seed corn 1.5 1.5 Flint Hills Resources LP Menlo, IA corn 110 110
Flint Hills Resources LP Shell Rock, IA corn 110 110
Flint Hills Resources LP Fairbank, IA corn 115 115 Flint Hills Resources LP Iowa Falls, IA corn 105 105 Front Range Energy, LLC Windsor, CO corn 40 40 Gateway Ethanol Pratt, KS corn 55 0
Gevo Luverne, MN corn 21 21 Glacial Lakes Energy, LLC - Mina Mina, SD corn 100 100 Glacial Lakes Energy, LLC - Watertown* Watertown, SD corn 100 100 Golden Cheese Company of California* Corona, CA cheese whey 5 0 Golden Grain Energy, LLC* Mason City, IA corn 115 115 Grain Processing Corp. Muscatine, IA corn 20 20 Grain Processing Corp. Washington, IN corn 20 20 Granite Falls Energy, LLC* Granite Falls, MN corn 52 52 Green Plains Renewable Energy Fergus Falls, MN corn 60 60 Green Plains Renewable Energy Lakota, IA corn 100 100 Green Plains Renewable Energy Riga, MI corn 60 60 Green Plains Renewable Energy Shenandoah, IA corn 55 55 Green Plains Renewable Energy Obion, TN corn 120 120 Green Plains Renewable Energy Bluffton, IN corn 120 120 Green Plains Renewable Energy Superior, IA corn 60 60 Green Plains Renewable Energy Central City, NE corn 100 100 Green Plains Renewable Energy Ord, NE corn 55 55
GTL Resources Rochelle, IL corn 100 100 Guardian Energy Janesville, MN corn 110 110 Guardian Lima, LLC Lima, OH corn 54 54 Hankinson Renewable Energy, LLC Hankinson, ND corn 110 110
Heartland Corn Products* Winthrop, MN corn 100 100 Heron Lake BioEnergy, LLC Heron Lake, MN corn 50 50 Highwater Ethanol, LLC Lamberton, MN corn 55 55 Homeland Energy New Hampton, IA corn 100 100 Husker Ag, LLC* Plainview, NE corn 75 75 Idaho Ethanol Processing, LLC Caldwell, ID potato waste 4 4 Company Location Feedstock Nameplate Capacity (mgy) Operating Production (mgy) Under Construction/ Expansion Capacity (mgy)

Abengoa Bioenergy Corp. (Total) 323 323 Colwich, KS corn/milo

Hugoton, KS crop residue and cellulosic energy crops 25

Mt. Vernon, IN corn Madison, IL corn Ravenna, NE corn York, NE corn Portales, NM corn Absolute Energy, LLC* St. Ansgar, IA corn 115 115 ACE Ethanol, LLC Stanley, WI corn 41 41 Adkins Energy, LLC* Lena, IL corn 45 45

Advanced BioEnergy, LLC (Total) 182 182 Fairmont, NE corn Aberdeen, SD corn Huron, SD corn Aemetis Keyes, CA corn 55 55 AGP* Hastings, NE corn 52 52
Al-Corn Clean Fuel* Claremont, MN corn 45 45
Alchem Ltd. LLP Grafton, ND corn 10 0 AltraBiofuels Coshocton Ethanol, LLC Coshocton, OH corn 60 0 AltraBiofuels Phoenix Bio Industries, LLC Goshen, CA corn 31.5 0 Amaizing Energy, LLC* Denison, IA corn 55 55

Archer Daniels Midland (Total) 1,750 1,750 Cedar Rapids, IA corn Clinton, IA corn Decatur, IL corn Peoria, IL corn Marshall, MN corn Wallhalla, ND corn/barley Columbus, NE corn Arkalon Energy, LLC Liberal, KS 110 110

Aventine Renewable Energy, LLC 464 354 Pekin, IL corn Canton, IL corn Aurora East, NE corn Aurora West, NE corn Mt. Vernon, IN corn Badger State Ethanol, LLC* Monroe, WI corn 50 50 Big River Resources Boyceville, LLC Boyceville, WI corn 40 40 Big River Resources Galva, LLC Galva, IL corn 100 100 Big River Resources West Burlington, LLC* West Burlington, IA corn 100 100 Big River United Energy Dyersville, IA corn 110 110 BioFuel Energy - Buffalo Lake Energy, LLC Fairmont, MN corn 115 115 BioFuel Energy - Pioneer Trail Energy, LLC Wood River, NE corn 115 115 Bionol Clearfield Clearfield, PA corn 110 0
Blue Flint Ethanol Underwood, ND corn 50 50 Bonanza Energy, LLC Garden City, KS corn/milo 55 55 BP Biofuels North America Jennings, LA sugar cane bagasse 1.5 1.5 Bridgeport Ethanol Bridgeport, NE corn 54 54 Bunge-Ergon Vicksburg Vicksburg, MS corn 54 54 Bushmills Ethanol, Inc.* Atwater, MN corn 50 50 

# U.S. Fuel Ethanol Industry Biorefineries and Capacity Illinois Corn Processing Pekin, IL corn 90 90 Iroquois Bio-Energy Company, LLC Rensselaer, IN corn 40 40 KAAPA Ethanol, LLC* Minden, NE corn 59 59 Kansas Ethanol, LLC Lyons, KS corn 55 55 KL Process Design Group Upton, WY wood waste 1.5 1.5 Land O’ Lakes* Melrose, MN cheese whey 2.6 2.6 Levelland/Hockley County Ethanol, LLC Levelland, TX corn 40 0 Lifeline Foods, LLC Joseph, MO corn 50 50 Lincolnland Agri-Energy, LLC* Palestine, IL corn 48 48 Lincolnway Energy, LLC* Nevada, IA corn 55 55 Little Sioux Corn Processors, LLC* Marcus, IA corn 92 92 Louis Dreyfus Commodities Grand Junction, IA corn 100 100 Louis Dreyfus Commodities Norfolk, NE corn 45 45 Marquis Energy, LLC Hennepin, IL corn 100 100 Marquis Energy - Wisconsin, LLC Necedah, WI corn 50 50 Marysville Ethanol, LLC Marysville, MI corn 50 50 Merrick & Company Aurora, CO waste beer 3 3 Mid America Agri Products/Wheatland Madrid, NE corn 44 44 Mid-Missouri Energy, Inc.* Malta Bend, MO corn 50 50 Midwest Renewable Energy, LLC Sutherland, NE corn 25 25 Minnesota Energy* Buffalo Lake, MN corn 18 0 Murphy Oil Hereford, TX corn/milo 105 105 Nebraska Corn Processing, LLC Cambridge, NE corn 45 45 NEDAK Ethanol Atkinson, NE corn 44 44 Nesika Energy, LLC Scandia, KS corn 10 10 New Energy Corp. South Bend, IN corn 102 102 North Country Ethanol, LLC* Rosholt, SD corn 20 20 NuGen Energy Marion, SD corn 110 110 One Earth Energy Gibson City, IL corn 100 100 Osage Bio-Energy Hopewell, VA corn/barley 65 0 Pacific Ethanol Madera, CA corn 40 0 Pacific Ethanol Stockton, CA corn 60 60 Pacific Ethanol Burley, ID corn 50 50 Pacific Ethanol Boardman, OR corn 40 40
Parallel Products Rancho Cucamonga, CA beverage waste
Parallel Products Louisville, KY beverage waste 5.4 5.4 Patriot Renewable Fuels, LLC Annawan, IL corn 100 100 Penford Products Cedar Rapids, IA corn 45 45 Pinal Energy, LLC Maricopa, AZ corn 55 55 Pine Lake Corn Processors, LLC Steamboat Rock, IA corn 31 31 Platinum Ethanol, LLC* Arthur, IA corn 110 110 Plymouth Ethanol, LLC* Merrill, IA corn 50 50 POET Biorefining - Alexandria Alexandria, IN corn 68 68 POET Biorefining - Ashton Ashton, IA corn 56 56 POET Biorefining - Big Stone Big Stone City, SD corn 79 79 POET Biorefining - Bingham Lake Bingham Lake, MN corn 35 35 POET Biorefining - Caro Caro, MI corn 53 53 POET Biorefining - Chancellor Chancellor, SD corn 110 110 POET Biorefining - Cloverdale Cloverdale, IN corn 92 92 POET Biorefining - Coon Rapids Coon Rapids, IA corn 54 54 POET Biorefining - Corning Corning, IA corn 65 65 POET Biorefining - Emmetsburg Emmetsburg, IA corn 55 55 POET Biorefining - Fostoria Fostoria, OH corn 68 68 POET Biorefining - Glenville Albert Lea, MN corn 42 42 POET Biorefining - Gowrie Gowrie, IA corn 69 69 POET Biorefining - Hanlontown Hanlontown, IA corn 56 56 POET Biorefining - Hudson Hudson, SD corn 56 56 POET Biorefining - Jewell Jewell, IA corn 69 69 POET Biorefining - Laddonia Laddonia, MO corn 50 50 POET Biorefining - Lake Crystal Lake Crystal, MN corn 56 56 POET Biorefining - Leipsic Leipsic, OH corn 68 68 POET Biorefining - Macon Macon, MO corn 46 46 POET Biorefining - Marion Marion, OH corn 68 68 POET Biorefining - Mitchell Mitchell, SD corn 68 68 POET Biorefining - North Manchester North Manchester, IN corn 68 68 POET Biorefining - Portland Portland, IN corn 68 68 POET Biorefining - Preston Preston, MN corn 46 46 POET Biorefining - Scotland Scotland, SD corn 11 11 POET Biorefining - Groton Groton, SD corn 53 53 Prairie Horizon Agri-Energy, LLC Phillipsburg, KS corn 40 40 Quad-County Corn Processors* Galva, IA corn 30 30 Red Trail Energy, LLC Richardton, ND corn 50 50 Redfield Energy, LLC* Redfield, SD corn 50 50 Reeve Agri-Energy Garden City, KS corn/milo 12 12 Renova Energy Torrington, WY corn 10 10
Show Me Ethanol Carrollton, MO corn 55 55 Siouxland Energy & Livestock Coop* Sioux Center, IA corn 60 60 Siouxland Ethanol, LLC Jackson, NE corn 50 50 Southwest Georgia Ethanol, LLC Camilla, GA corn 100 100 Southwest Iowa Renewable Energy, LLC* Council Bluffs, IA corn 110 110 Spectrum Business Ventures, Inc. Mead, NE corn 25 0 Sterling Ethanol, LLC Sterling, CO corn 42 42 Summit Natural Energy Cornelius, OR waste sugars/starches 1 1
Sunoco Volney, NY corn 114 114 Tate & Lyle Loudon, TN corn 105 105
Tharaldson Ethanol Casselton, ND corn/milo 150 150 The Andersons Albion Ethanol, LLC Albion, MI corn 55 55 The Andersons Clymers Ethanol, LLC Clymers, IN corn 110 110 The Andersons Marathon Ethanol, LLC Greenville, OH corn 110 110 Trenton Agri Products, LLC Trenton, NE corn 40 40 United Ethanol, LLC Milton, WI corn 52 52 United WI Grain Producers, LLC* Friesland, WI corn 53 53 Utica Energy, LLC Oshkosh, WI corn 48 48
Valero Renewable Fuels Albert City, IA corn 110 110
Valero Renewable Fuels Fort Dodge, IA corn 110 110
Valero Renewable Fuels Albion, NE corn 110 110
Valero Renewable Fuels Aurora, SD corn 120 120
Valero Renewable Fuels Charles City, IA corn 110 110
Valero Renewable Fuels Welcome, MN corn 110 110
Valero Renewable Fuels Hartley, IA corn 110 110
Valero Renewable Fuels North Linden, IN corn 110 110
Valero Renewable Fuels Bloomingburg, OH corn 110 110
Valero Renewable Fuels Jefferson Junction, WI corn 130 130 Western New York Energy, LLC Shelby, NY corn 50 50 Western Plains Energy, LLC* Campus, KS corn 45 45 White Energy Russell, KS milo/wheat starch 48 48 White Energy Hereford, TX corn/milo 100 100 White Energy Plainview, TX corn 110 110 Wind Gap Farms Baconton, GA brewery waste 0.4 0.4
Yuma Ethanol Yuma, CO corn 40 40

U.S. Ca p a c ity T O TA LS 

### 14,906.9 14,114.4 140 * locally owned Updated : January 2012

# The Ethanol Market of the Future
In order to meet our national goals of domestic renewable fuel production and energy security, investments in automotive technology and refueling infrastructure must be made. Such investments and policies that promote those investments would include:
Successful introduction of E15: Seamlessly integrating E15 into the fuel choices of Americans is critical to the success of the Renewable Fuel Standard (RFS) and the domestic ethanol industry. The RFA is leading efforts to educate stakeholders, allay consumer concerns, and update regulatory structures to allow E15 space at the pump.
Evolution of ethanol blends: Consumers deserve a choice at the pump. Providing them with a range of ethanol blends gives them the power to choose the ethanol level that works best for them. Current gas pump technology locks Americans into a predetermined choice at the pump. New technologies, like ethanol blender pumps, would allow both retailers and consumers to tailor their refueling options to include the ethanol level best suited to their needs. As America’s gas pumps are replaced, they should be replaced with blender pump technology. More on this technology and how it works can be found at www.BYOEthanol.com. Innovative Auto Engineering: Flex fuel vehicles are the surest, most cost-effective way to provide consumers the engine technology they need to utilize higher level blends. At least half of all vehicles sold, not just by American automakers, should be FFVs. Moreover, as technologies improve, ethanol direct injection engines and other breakthroughs will properly capitalize on the performance advantages of ethanol, namely ethanol’s high octane rating.

Oregon Washington Montana

Idaho

Nevada Utah

Arizona

Alaska New Mexico

Texas Oklahoma Kansas Missouri Illinois Indiana Ohio

West Virginia

Virginia Kentucky

Arkansas T ennessee

Mississippi

Alabama Georgia

Florida North Carolina

South Carolina

Louisiana Pennsylvania New York Maine Vermont

New Hampshire

Massachusetts

Rhode Island

Washington DC Maryland

Delaware

New Jersey

Connecticut Nebraska

Colorado

California Wyoming North Dakota
Minnesota

Wisconsin

Michigan

Iowa South Dakota

Hawaii 

### FFV m a rk e t conc e ntr a t i on

>300

225-300

150-225

75-150

0-75 FFV Population (Thousands)

Source: R.L. Polk & Company Vehicles in Operation Database, July 1, 2009

2012 Ethanol Industry O U T L OOK > < 11 

# the industry remains committed
to expanding the use of all
ethanol blends. 

# Creating a Market for E15 Blends

T he effec t ive and t imely in t roduc t ion of 

## E 15 blends is cri t ical t o t he fu t ure grow t h and success of 

## A merica 

## ’ s homegrown

e t hanol indus t ry 

## . A chieving widespread accep t ance and availabili t y of 

## E 15 will t ake t ime and effor t 

## . I t t ook nearly 

## 30 years

for 

## E 10 t o gain marke t sa t ura t ion 

## . W hile i t will no t t ake as long for 

## E 15, t here are cer t ain s t eps and processes t ha t mus t be

comple t ed before 

## E 15 is a widely available op t ion for consumers 

## .



# E15 Timeline:
The path to E15 began in March 2009 with the submittal of a Clean Air Act (CAA) 211(f) waiver request to the U.S. Environmental Protection Agency (EPA). After the most robust testing of any fuel in history, EPA approved the use of E15 for cars, light-duty trucks, and SUVs built since model year (MY) 2001. This approval was essential, and officially began the process of registering E15 as a fuel – a process all fuels must complete. The RFA is working with industry partners like Growth Energy to successfully register E15 as a fuel with EPA. Registration and the final approval of a misfueling mitigation plan devised by the RFA are the final federal steps in getting E15 to the market. Once completed, the focus will shift to the states where each state presents a different set of requirements in order to sell E15. Some states, like Iowa and Illinois, will be ready to move forward with E15 once federal requirements are met. Other states will take additional efforts. H



## FACT: Total miles traveled in the testing of E15 would represent 12 round trips to the Moon. E15 has been the most exhaustively tested fuel ever approved by EPA.

16 

# The Path to E15
Introducing E15 into the market is a process that is fairly clear and well understood, but it is not easy or expedient. It will require a consistent and long-term commitment. 

# Hurdles to E15?
As if the process of introducing a new fuel were not complicated enough, pending lawsuits and threats of Congressional action to stall EPA’s implementation of E15 continue to provide challenges above and beyond the known steps to introduce a new fuel. The lawsuit filed by industries opposed to E15 will move forward in 2012 and the RFA will remain engaged in the fight, defending EPA’s decision to approve E15. The RFA will also vigorously defend E15 on Capitol Hill against members of Congress seeking to slow, stall, or suffocate American renewable fuel production.



# 3 E15 Label – T he EPA has finalized the label to be used on all gasoline pumps dispensing E15 ethanol blends. 

# 3 E15 M isfueling M itigation Plan – T he R FA has submitted a M isfueling M itigation plan to EPA. In order for any retailer to offer E15, they must comply with a misfueling mitigation strategy like the one submitted by R FA. 

# 3 EPA Fuel R egistration – All new fuels must register with EPA, including the submission of health effects testing. T he R FA has worked with industry partners to compile the information necessary and will be submitting to EPA in early 2012. 

# 3 State R egulations – As it was with E10 blends, the R FA is working with state regulators to properly adjust various fuel regulations to allow for the legal sale of E15 blends. Some states, like Iowa and Illinois, are ready to allow E15 sales once all federal requirements are met. 

# 3 Point-of-Sale – T he R FA is working with retailers to address concerns over misfueling, E15 storage and other issues. N amely, the R FA is leading a group of stakeholders in developing information for retailers and others on the proper use of E15 fuel blends. T his group consists of ethanol interests as well as fuel marketers, engine manufacturers, and state regulators. 

# E15 CHECKLIST

2012 Ethanol Industry O U T L OOK > < 17 

# Ethanol in the post-VEETC world
The tax incentive for ethanol blending, known as the Volumetric Ethanol Excise Tax Credit or VEETC, expired on January 1, 2012. For its part, the ethanol industry voluntarily let the expiration happen as a maturing and evolving industry no longer needed its market demand pull. To be clear, VEETC was a highly successful incentive by any measure. It served as the underpinning of a new industry that sought to challenge the monopoly oil has on American transportation fuels. It helped create new markets for American farmers and provided them with new income opportunities that meant fewer government payments. The tax incentive has also helped to create the 401,600 jobs associated with domestic ethanol production today and reduced America’s import of oil by 485 million barrels per year. 

# Washington’s New Focus

T he dysfunc t ionali t y of our governmen t in 

## W ashing t on t oday has been well documen t ed 

## . I n a hyper 

## - par t isan environmen t

in which t he smalles t of legisla t ive or regula t ory t asks t akes t he governmen t t o t he brink of disas t er 

## , A merica 

## ’ s e t hanol indus t ry

is en t ering a new era 

## . A s t he indus t ry evolves 

## , so t oo mus t t he policies and t he focus in 

## W ashing t on t ha t help t o level t he playing

field wi t h more es t ablished energy resources like oil and na t ural gas 

## .

Increasingly, American taxpayers continue to subsidize oil companies to the tune of at least $4 billion per year despite the maturity and market domination those companies enjoy. Congress needs to level the playing field for energy technologies and eliminating these wasteful oil subsidies is the logical first step. Additionally, Congress must continue to pursue progressive tax policies that will accelerate the commercialization of new advanced and cellulosic ethanol technologies. Policies like the Production Tax Credit for cellulosic ethanol and the Accelerated Depreciation for Cellulosic Biorefineries should be extended at least through 2015 to provide stability in the rapidly changing ethanol industry. Policies like the accelerated depreciation for capital investments are ubiquitous throughout the energy sector, especially in the oil industry, and new biofuel technologies should not be discriminated against by allowing this important incentive to expire at year’s end.



## FACT: According to the Environmental Law Institute, traditional fossil fuels received more than $72 billion in subsidies from American taxpayers between 2002 and 2008. By comparison, renewable technologies received just $29 billion.

( S ource: “ E nergy S ubsidies B lack, N ot G reen, ” E nvironmental L aw Institute, 2009.)

18

# The Ethanol Market of the Future
In order to meet our national goals of domestic renewable fuel production and energy security, investments in automotive technology and refueling infrastructure must be made. Such investments and policies that promote those investments would include:
Successful introduction of E15: Seamlessly integrating E15 into the fuel choices of Americans is critical to the success of the Renewable Fuel Standard (RFS) and the domestic ethanol industry. The RFA is leading efforts to educate stakeholders, allay consumer concerns, and update regulatory structures to allow E15 space at the pump.
Evolution of ethanol blends: Consumers deserve a choice at the pump. Providing them with a range of ethanol blends gives them the power to choose the ethanol level that works best for them. Current gas pump technology locks Americans into a predetermined choice at the pump. New technologies, like ethanol blender pumps, would allow both retailers and consumers to tailor their refueling options to include the ethanol level best suited to their needs. As America’s gas pumps are replaced, they should be replaced with blender pump technology. More on this technology and how it works can be found at www.BYOEthanol.com. Innovative Auto Engineering: Flex fuel vehicles are the surest, most cost-effective way to provide consumers the engine technology they need to utilize higher level blends. At least half of all vehicles sold, not just by American automakers, should be FFVs. Moreover, as technologies improve, ethanol direct injection engines and other breakthroughs will properly capitalize on the performance advantages of ethanol, namely ethanol’s high octane rating.

Oregon Washington Montana

Idaho

Nevada Utah

Arizona

Alaska New Mexico

Texas Oklahoma Kansas Missouri Illinois Indiana Ohio

West Virginia

Virginia Kentucky

Arkansas T ennessee

Mississippi

Alabama Georgia

Florida North Carolina

South Carolina

Louisiana Pennsylvania New York Maine Vermont

New Hampshire

Massachusetts

Rhode Island

Washington DC Maryland

Delaware

New Jersey

Connecticut Nebraska

Colorado

California Wyoming North Dakota
Minnesota

Wisconsin

Michigan

Iowa South Dakota

Hawaii 

### FFV m a rk e t conc e ntr a t i on

>300

225-300

150-225

75-150

0-75 FFV Population (Thousands)

Source: R.L. Polk & Company Vehicles in Operation Database, July 1, 2009

2012 Ethanol Industry O U T L OOK > < 11 

# the industry remains committed
to expanding the use of all
ethanol blends. 

# Creating a Market for E15 Blends

T he effec t ive and t imely in t roduc t ion of 

## E 15 blends is cri t ical t o t he fu t ure grow t h and success of 

## A merica 

## ’ s homegrown

e t hanol indus t ry 

## . A chieving widespread accep t ance and availabili t y of 

## E 15 will t ake t ime and effor t 

## . I t t ook nearly 

## 30 years

for 

## E 10 t o gain marke t sa t ura t ion 

## . W hile i t will no t t ake as long for 

## E 15, t here are cer t ain s t eps and processes t ha t mus t be

comple t ed before 

## E 15 is a widely available op t ion for consumers 

## .



# E15 Timeline:
The path to E15 began in March 2009 with the submittal of a Clean Air Act (CAA) 211(f) waiver request to the U.S. Environmental Protection Agency (EPA). After the most robust testing of any fuel in history, EPA approved the use of E15 for cars, light-duty trucks, and SUVs built since model year (MY) 2001. This approval was essential, and officially began the process of registering E15 as a fuel – a process all fuels must complete. The RFA is working with industry partners like Growth Energy to successfully register E15 as a fuel with EPA. Registration and the final approval of a misfueling mitigation plan devised by the RFA are the final federal steps in getting E15 to the market. Once completed, the focus will shift to the states where each state presents a different set of requirements in order to sell E15. Some states, like Iowa and Illinois, will be ready to move forward with E15 once federal requirements are met. Other states will take additional efforts. H



## FACT: Total miles traveled in the testing of E15 would represent 12 round trips to the Moon. E15 has been the most exhaustively tested fuel ever approved by EPA.

16 

# The Path to E15
Introducing E15 into the market is a process that is fairly clear and well understood, but it is not easy or expedient. It will require a consistent and long-term commitment. 

# Hurdles to E15?
As if the process of introducing a new fuel were not complicated enough, pending lawsuits and threats of Congressional action to stall EPA’s implementation of E15 continue to provide challenges above and beyond the known steps to introduce a new fuel. The lawsuit filed by industries opposed to E15 will move forward in 2012 and the RFA will remain engaged in the fight, defending EPA’s decision to approve E15. The RFA will also vigorously defend E15 on Capitol Hill against members of Congress seeking to slow, stall, or suffocate American renewable fuel production.



# 3 E15 Label – T he EPA has finalized the label to be used on all gasoline pumps dispensing E15 ethanol blends. 

# 3 E15 M isfueling M itigation Plan – T he R FA has submitted a M isfueling M itigation plan to EPA. In order for any retailer to offer E15, they must comply with a misfueling mitigation strategy like the one submitted by R FA. 

# 3 EPA Fuel R egistration – All new fuels must register with EPA, including the submission of health effects testing. T he R FA has worked with industry partners to compile the information necessary and will be submitting to EPA in early 2012. 

# 3 State R egulations – As it was with E10 blends, the R FA is working with state regulators to properly adjust various fuel regulations to allow for the legal sale of E15 blends. Some states, like Iowa and Illinois, are ready to allow E15 sales once all federal requirements are met. 

# 3 Point-of-Sale – T he R FA is working with retailers to address concerns over misfueling, E15 storage and other issues. N amely, the R FA is leading a group of stakeholders in developing information for retailers and others on the proper use of E15 fuel blends. T his group consists of ethanol interests as well as fuel marketers, engine manufacturers, and state regulators. 

# E15 CHECKLIST

2012 Ethanol Industry O U T L OOK > < 17 

# Ethanol in the post-VEETC world
The tax incentive for ethanol blending, known as the Volumetric Ethanol Excise Tax Credit or VEETC, expired on January 1, 2012. For its part, the ethanol industry voluntarily let the expiration happen as a maturing and evolving industry no longer needed its market demand pull. To be clear, VEETC was a highly successful incentive by any measure. It served as the underpinning of a new industry that sought to challenge the monopoly oil has on American transportation fuels. It helped create new markets for American farmers and provided them with new income opportunities that meant fewer government payments. The tax incentive has also helped to create the 401,600 jobs associated with domestic ethanol production today and reduced America’s import of oil by 485 million barrels per year. 

# Washington’s New Focus

T he dysfunc t ionali t y of our governmen t in 

## W ashing t on t oday has been well documen t ed 

## . I n a hyper 

## - par t isan environmen t

in which t he smalles t of legisla t ive or regula t ory t asks t akes t he governmen t t o t he brink of disas t er 

## , A merica 

## ’ s e t hanol indus t ry

is en t ering a new era 

## . A s t he indus t ry evolves 

## , so t oo mus t t he policies and t he focus in 

## W ashing t on t ha t help t o level t he playing

field wi t h more es t ablished energy resources like oil and na t ural gas 

## .

Increasingly, American taxpayers continue to subsidize oil companies to the tune of at least $4 billion per year despite the maturity and market domination those companies enjoy. Congress needs to level the playing field for energy technologies and eliminating these wasteful oil subsidies is the logical first step. Additionally, Congress must continue to pursue progressive tax policies that will accelerate the commercialization of new advanced and cellulosic ethanol technologies. Policies like the Production Tax Credit for cellulosic ethanol and the Accelerated Depreciation for Cellulosic Biorefineries should be extended at least through 2015 to provide stability in the rapidly changing ethanol industry. Policies like the accelerated depreciation for capital investments are ubiquitous throughout the energy sector, especially in the oil industry, and new biofuel technologies should not be discriminated against by allowing this important incentive to expire at year’s end.



## FACT: According to the Environmental Law Institute, traditional fossil fuels received more than $72 billion in subsidies from American taxpayers between 2002 and 2008. By comparison, renewable technologies received just $29 billion.

( S ource: “ E nergy S ubsidies B lack, N ot G reen, ” E nvironmental L aw Institute, 2009.)

18

# The Ethanol Market of the Future
In order to meet our national goals of domestic renewable fuel production and energy security, investments in automotive technology and refueling infrastructure must be made. Such investments and policies that promote those investments would include:
Successful introduction of E15: Seamlessly integrating E15 into the fuel choices of Americans is critical to the success of the Renewable Fuel Standard (RFS) and the domestic ethanol industry. The RFA is leading efforts to educate stakeholders, allay consumer concerns, and update regulatory structures to allow E15 space at the pump.
Evolution of ethanol blends: Consumers deserve a choice at the pump. Providing them with a range of ethanol blends gives them the power to choose the ethanol level that works best for them. Current gas pump technology locks Americans into a predetermined choice at the pump. New technologies, like ethanol blender pumps, would allow both retailers and consumers to tailor their refueling options to include the ethanol level best suited to their needs. As America’s gas pumps are replaced, they should be replaced with blender pump technology. More on this technology and how it works can be found at www.BYOEthanol.com. Innovative Auto Engineering: Flex fuel vehicles are the surest, most cost-effective way to provide consumers the engine technology they need to utilize higher level blends. At least half of all vehicles sold, not just by American automakers, should be FFVs. Moreover, as technologies improve, ethanol direct injection engines and other breakthroughs will properly capitalize on the performance advantages of ethanol, namely ethanol’s high octane rating.

Oregon Washington Montana

Idaho

Nevada Utah

Arizona

Alaska New Mexico

Texas Oklahoma Kansas Missouri Illinois Indiana Ohio

West Virginia

Virginia Kentucky

Arkansas T ennessee

Mississippi

Alabama Georgia

Florida North Carolina

South Carolina

Louisiana Pennsylvania New York Maine Vermont

New Hampshire

Massachusetts

Rhode Island

Washington DC Maryland

Delaware

New Jersey

Connecticut Nebraska

Colorado

California Wyoming North Dakota
Minnesota

Wisconsin

Michigan

Iowa South Dakota

Hawaii 

### FFV m a rk e t conc e ntr a t i on

>300

225-300

150-225

75-150

0-75 FFV Population (Thousands)

Source: R.L. Polk & Company Vehicles in Operation Database, July 1, 2009

2012 Ethanol Industry O U T L OOK > < 11 

# the industry remains committed
to expanding the use of all
ethanol blends. 

# Creating a Market for E15 Blends

T he effec t ive and t imely in t roduc t ion of 

## E 15 blends is cri t ical t o t he fu t ure grow t h and success of 

## A merica 

## ’ s homegrown

e t hanol indus t ry 

## . A chieving widespread accep t ance and availabili t y of 

## E 15 will t ake t ime and effor t 

## . I t t ook nearly 

## 30 years

for 

## E 10 t o gain marke t sa t ura t ion 

## . W hile i t will no t t ake as long for 

## E 15, t here are cer t ain s t eps and processes t ha t mus t be

comple t ed before 

## E 15 is a widely available op t ion for consumers 

## .



# E15 Timeline:
The path to E15 began in March 2009 with the submittal of a Clean Air Act (CAA) 211(f) waiver request to the U.S. Environmental Protection Agency (EPA). After the most robust testing of any fuel in history, EPA approved the use of E15 for cars, light-duty trucks, and SUVs built since model year (MY) 2001. This approval was essential, and officially began the process of registering E15 as a fuel – a process all fuels must complete. The RFA is working with industry partners like Growth Energy to successfully register E15 as a fuel with EPA. Registration and the final approval of a misfueling mitigation plan devised by the RFA are the final federal steps in getting E15 to the market. Once completed, the focus will shift to the states where each state presents a different set of requirements in order to sell E15. Some states, like Iowa and Illinois, will be ready to move forward with E15 once federal requirements are met. Other states will take additional efforts. H



## FACT: Total miles traveled in the testing of E15 would represent 12 round trips to the Moon. E15 has been the most exhaustively tested fuel ever approved by EPA.

16 

# The Path to E15
Introducing E15 into the market is a process that is fairly clear and well understood, but it is not easy or expedient. It will require a consistent and long-term commitment. 

# Hurdles to E15?
As if the process of introducing a new fuel were not complicated enough, pending lawsuits and threats of Congressional action to stall EPA’s implementation of E15 continue to provide challenges above and beyond the known steps to introduce a new fuel. The lawsuit filed by industries opposed to E15 will move forward in 2012 and the RFA will remain engaged in the fight, defending EPA’s decision to approve E15. The RFA will also vigorously defend E15 on Capitol Hill against members of Congress seeking to slow, stall, or suffocate American renewable fuel production.



# 3 E15 Label – T he EPA has finalized the label to be used on all gasoline pumps dispensing E15 ethanol blends. 

# 3 E15 M isfueling M itigation Plan – T he R FA has submitted a M isfueling M itigation plan to EPA. In order for any retailer to offer E15, they must comply with a misfueling mitigation strategy like the one submitted by R FA. 

# 3 EPA Fuel R egistration – All new fuels must register with EPA, including the submission of health effects testing. T he R FA has worked with industry partners to compile the information necessary and will be submitting to EPA in early 2012. 

# 3 State R egulations – As it was with E10 blends, the R FA is working with state regulators to properly adjust various fuel regulations to allow for the legal sale of E15 blends. Some states, like Iowa and Illinois, are ready to allow E15 sales once all federal requirements are met. 

# 3 Point-of-Sale – T he R FA is working with retailers to address concerns over misfueling, E15 storage and other issues. N amely, the R FA is leading a group of stakeholders in developing information for retailers and others on the proper use of E15 fuel blends. T his group consists of ethanol interests as well as fuel marketers, engine manufacturers, and state regulators. 

# E15 CHECKLIST

2012 Ethanol Industry O U T L OOK > < 17 

# Ethanol in the post-VEETC world
The tax incentive for ethanol blending, known as the Volumetric Ethanol Excise Tax Credit or VEETC, expired on January 1, 2012. For its part, the ethanol industry voluntarily let the expiration happen as a maturing and evolving industry no longer needed its market demand pull. To be clear, VEETC was a highly successful incentive by any measure. It served as the underpinning of a new industry that sought to challenge the monopoly oil has on American transportation fuels. It helped create new markets for American farmers and provided them with new income opportunities that meant fewer government payments. The tax incentive has also helped to create the 401,600 jobs associated with domestic ethanol production today and reduced America’s import of oil by 485 million barrels per year. 

# Washington’s New Focus

T he dysfunc t ionali t y of our governmen t in 

## W ashing t on t oday has been well documen t ed 

## . I n a hyper 

## - par t isan environmen t

in which t he smalles t of legisla t ive or regula t ory t asks t akes t he governmen t t o t he brink of disas t er 

## , A merica 

## ’ s e t hanol indus t ry

is en t ering a new era 

## . A s t he indus t ry evolves 

## , so t oo mus t t he policies and t he focus in 

## W ashing t on t ha t help t o level t he playing

field wi t h more es t ablished energy resources like oil and na t ural gas 

## .

Increasingly, American taxpayers continue to subsidize oil companies to the tune of at least $4 billion per year despite the maturity and market domination those companies enjoy. Congress needs to level the playing field for energy technologies and eliminating these wasteful oil subsidies is the logical first step. Additionally, Congress must continue to pursue progressive tax policies that will accelerate the commercialization of new advanced and cellulosic ethanol technologies. Policies like the Production Tax Credit for cellulosic ethanol and the Accelerated Depreciation for Cellulosic Biorefineries should be extended at least through 2015 to provide stability in the rapidly changing ethanol industry. Policies like the accelerated depreciation for capital investments are ubiquitous throughout the energy sector, especially in the oil industry, and new biofuel technologies should not be discriminated against by allowing this important incentive to expire at year’s end.



## FACT: According to the Environmental Law Institute, traditional fossil fuels received more than $72 billion in subsidies from American taxpayers between 2002 and 2008. By comparison, renewable technologies received just $29 billion.

( S ource: “ E nergy S ubsidies B lack, N ot G reen, ” E nvironmental L aw Institute, 2009.)

1819 2011 Ethanol Industry OUTLOOK 

# A B inding RF S
The federal Renewable Fuel Standard (RFS) serves as the catalyst for the continued growth and innovation within the domestic ethanol industry. As such, it remains the key pillar of federal policy to create market share for renewable alternatives to oil in the nation’s motor fuel market. With the expiration of VEETC, critics of ethanol have focused their vitriol on the RFS and efforts to rewrite, reduce, and repeal abound in Congress. Such proposals cannot be allowed to succeed. The RFS provides assurance to investors, farmers, and the fuel market that renewable fuels will be part of the mix. For new technologies and ethanol companies, the RFS is a critical policy to attract investment and commercialize new ethanol production processes. 

# Regulation and the Market

The need for increased market access has intensified the focus of the American ethanol industry on federal and state regulatory agencies that have direct control over how much ethanol can and will be used. Crucial regulatory and market expansion issues like the implementation of E15 ethanol blends at the state and federal level must be addressed correctly to ensure the smooth adoption of this new fuel option. Other regulatory issues, such as greenhouse gas reduction regulations, transportation concerns, and employee and community safety priorities must be closely monitored. Regulations of these types are important but, if implemented incorrectly, can be unnecessarily burdensome and economically suffocating for ethanol producers across the nation. Y ear 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Renewable Biofuel 9.0 10.5 12.0 12.6 13.2 13.8 14.4 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0
A dvanced Biofuel 0.6 0.95 1.35 2.0 2.75 3.75 5.5 7.25 9.0 11.0 13.0 15.0 18.0 21.0 Cellulosic Biofuel 0.1 0.25 0.5 1.0 1.75 3.0 4.25 5.5 7.0 8.5 10.5 13.5 16.0 Biomass-based Diesel 0.5 0.65 0.8 1.0 Undifferentiated A dvanced Biofuel 0.1 0.2 0.3 0.5 1.75 2.0 2.5 3.0 3.5 4.0 4.5 4.5 4.5 5.0

Total RFS 9.0 11.1 12.95 13.95 15.2 16.55 18.15 20.5 22.25 24.0 26.0 28.0 30.0 33.0 36.0 

### rene w able f uel standard sc h edule (B illi o n G all o ns P er Y ear )

6

5

4

3

2

1

0 O & G, 1918-2009 Nuclear, 1947-1999 Biofuels, 1980-2009 Renewables, 1994-2009 $4.86

$3.50

$1.08 $0.37 2010$, billions 

# E ye on the S tates
Legislative and regulatory action in state capitals across the nation relating to ethanol have picked up in both intensity and importance. From efforts to ban ethanol in New Hampshire to labeling concerns in Nebraska to a repeal threat of the Florida Renewable Fuel Standard, anti-ethanol interests are motivating their state affiliates in an effort to dismantle domestic ethanol production from the ground up. The RFA has and will continue to workwith our members and the industry to address antiethanol state initiatives and look for opportunities to expand ethanol markets in all 50 states. Hist o rical A verage of A nnual E nergy S ubsidies : A C entury of Federal S upp oRT

Source: “What would Jefferson do?”, DBL Investors, September 2011

2012 Ethanol Industry O UTL OO K > < 19

# B uilding the B iorefinery Model
American ethanol producers are about far more than just fuel and feed today. Technologies are being developed and deployed that not only improve the efficiency of ethanol and distillers grains production, but are producing new bio-based products and chemicals that will further displace America’s thirst for oil. The largest example of these new technologies is corn oil extraction. An estimated 40-50 percent of ethanol dry mills across the country are extracting corn oil today. Corn oil can be used in various applications including biodiesel production, feed markets, and as the building blocks for a variety of industrial applications. The RFA estimates that U.S. ethanol producers supplied 175 million gallons of corn oil in 2011. Beyond corn oil, new technologies are also creating a wide range of bio-based chemicals and other products that will displace crude oil and transform the ethanol industry into a larger player in the fuel, feed, food, and chemical markets.



# I nnovation at Work

I nnovative is the word that best describes 

## A merica 

## ’ s ethanol industry today 

## . W hether it is new e ff iciencies and products being

developed at existing ethanol biore f ineries or the evolutionary technologies that will turn agricultural residues 

## , grasses 

## , garbage 

## ,
and other f eedstocks into ethanol 

## , domestic ethanol production is on the move to help answer 

## 21 st century challenges with 

## 21 st

century 

## A merican ingenuity 

## .



# New technologies, new opportunities
Existing ethanol production is building a strong foundation from which new technologies and new fuel will be launched. Advanced and cellulosic ethanol companies are making the transition from the laboratory to the market with technologies that will greatly expand the basket of feedstocks from which ethanol is made. These technologies are being deployed as both enhancements to existing ethanol production (so-called bolt-on facilities) and as stand alone ethanol biorefineries. Right now, more than two dozen companies are aggressively deploying demonstration or commercial scale projects all across the nation. Abengoa Bioenergy, one of the nation’s largest producers of ethanol from grain, is currently constructing a joint grain and switchgrass ethanol biorefinery in Hutchinson, Kansas, that will produce 25 million gallons a year once completed. Other companies such as Coskata, Mascoma, and Inbicon are also preparing commercial and demonstration biorefineries that will accelerate the evolution of domestic ethanol production.

202010 Ethanol Industry OUTLOOK 

# E

xisting ethanol pro d uction
is buil d ing a strong
foun d ation from which
new technologies an d new
fuel will be launche d

. W hat is advanced and cellulosic ethanol?

Cellulose refers to the material comprising the cell walls of any green plant and is the most common organic compound found on Earth. Cellulosic ethanol is ethanol produced by turning the sugars in cellulose into alcohol fuel. Advanced ethanol, by comparison, is sourced from non-cellulosic feedstocks including sugars and starches other than corn starch. All sources for ethanol will be required to provide the nation with the kind of energy choices we need.

2012 Ethanol Industry O UTL OO K > < 21

# Global T rade S trengthens
The emergence of American ethanol on the world market stems from the cost-efficient nature of U.S. ethanol and the rising world sugar price. Forecasts for 2012 and beyond strongly suggest this dynamic will continue. In 2011, the U.S. exported a record of more than 1 billion gallons of denatured and undenatured ethanol. These are gallons not blended with gasoline, and thus not eligible for any federal tax incentive. These exports represent an increase of some 600 million gallons over 2010, the previous record year. Top destinations for U.S. ethanol were Brazil, Europe, and Canada with American product also finding its way to the Middle East and Asia. In addition to ethanol, the U.S. also exported nearly 8 million metric tons of distillers grains to growing markets in North America, Asia and Europe. An interesting shift in ethanol trade is also occurring. Deemed “The Ethanol Shuffle,” carbon footprint calculations in both the federal Renewable Fuel Standard and the California Low Carbon Fuel Standard (LCFS) encourage the import of Brazilian ethanol even as the Brazilian industry falls short in meeting its own domestic demand. As a result, America has been importing ethanol from Brazil while simultaneously exporting ethanol to Brazil to backfill its market. All the while, a doubling of carbon emissions from transporting these ethanol shipments will occur, partly undermining the carbon reduction goals of both policies. 

# American E thanol in the Global Market

A f ter putting their toe in the water in 

## 2010, U

. S

. ethanol producers entered the world market in a big way in 

## 2011. W ith

record production 

## , use 

## , and now exports 

## , A merica 

## ’ s ethanol industry is the largest and most e ff icient in the world 

## . A s new

opportunities f or domestic producers open overseas 

## , new challenges and growing pains associated with an increased global

f ootprint will also emerge 

## .



# I ssues, O pportunities E merge on the Global S tage
The growing presence of U.S. ethanol in the global fuel supply is expectedly creating new challenges and opportunities. As the low-cost producer of ethanol, and with excess supply, American ethanol producers have emerged as the world’s most reliable and cost-effective source of ethanol. This is creating both friction and opportunity in other nations.

22

## European Union Trade Complaint The most pressing trade issue for U.S. ethanol producers and marketers is the antidumping and countervailing duties investigations initiated by the European Commission (EC). The basis of the claim is that American ethanol

exporters were shipping ethanol and ethanol blends to Europe after first taking advantage of the now expired

tax credit for ethanol blending for retail. The result, according to European complaints, was an undercutting

of European ethanol prices and “harm” to European ethanol producers. This is an important issue for

U.S. ethanol producers as export markets have emerged as welcomed opportunities for domestically

produced ethanol.

The RFA is confident that, as the investigations proceed and the true facts are revealed about U.S.

ethanol trading practices and the workings of domestic tax incentives, the industry will succeed in

pushing back on the claims of illegal dumping and subsidies concerning U.S. ethanol exports. And, the RFA is leading efforts on behalf of the U.S. ethanol industry to cooperate with the investigation, and present the U.S. ethanol industry position before the Commission in Brussels.



## Renewable F uels Policies Around the Globe Renewable energy initiatives in other nations are seeking to reduce the use of petroleum, clean the environment, and create economic opportunity. Many of these, such as Canada’s Renewable Fuel Standard and the European Union’s Renewable Energy Directive, are similar to the U.S.Renewable Fuel Standard in requiring the use of cleaner renewable alternatives to petroleumbased fuels. These policies, including air pollution concerns in large cities in the Middle East, are creating opportunities for U.S ethanol producers as the largest supplier of ethanol today. Source: International Trade Commission, RFA *Estimated 

### Hist o ric U.S. E t h an o l EX p o rts
(D enatured and U ndenatured , No n -B everage )



### Source: F.O. Lichts 

### Continent Africa Asia Australia Europe North and Central America South America
2011 38.31 889.7 87.2 1,167.64 14,401.34 5,771.9

Nation Brazil Canada China European Union
2011 5,573.24 462.3 554.76 1,199.31

*Estimated 

### G l o bal et h an o l pr o ducti o n ( milli o ns of gall o ns )* 600

500

400

300

200

100

0
2007 2008 2009 2010 2011 435.2

10.0 Millions

of Gallons 600.0

193.7 160.0* 1,200

1,000

800

600

400

200

0
2007 2008 2009 2010 2011 150.2 157.7 396.0 Millions

of Gallons 1,100.0*

113.3 

### Hist o ric U.S. E t h an o l I mp o rts

2012 Ethanol Industry O UTL OO K > < 23

# T omorrow’s T echnologies T oday
Ethanol producers are among the most likely to adopt new technologies that improve efficiencies, increase yields, and reduce carbon footprints. Today, roughly 90% of the nation’s ethanol is produced using the dry mill process, with the remainder using wet mill technology. Also, slightly more than 90% of the energy needed to run the nation’s 200+ ethanol biorefineries comes from natural gas—a plentiful domestic energy resource. Finally, nearly a quarter of these facilities are using Combined Heat and Power (CHP) technologies, also known as co-generation. According to the latest research, the average dry mill ethanol plant in 2008 used 28% less thermal energy per gallon than it did just seven years earlier in 2001. Electricity demand per gallon of production fell 32% from 2001 to 2008 and water use fell by 47%. All the while, ethanol producers are increasing the amount of ethanol they can produce from the same bushel of corn. At 2.8 gallons per bushel, ethanol yields per bushel are up 5% since 2001. 

# E nergetically Going Green-er

O ver the past 

# 30 years 

# , and in particular in the past decade 

## , ethanol production has quietly become increasingly e ff icient 

## . F rom improvements in corn production to greater e ff iciencies at ethanol biore f ineries 

## , A merica 

## ’ s leading renewable f uel is providing

more with less 

## . T hese improvements have dramatically reduced the environmental impacts o f producing ethanol 

## .



# O n the Farm
American farmers are the most productive and efficient the world has ever known. And, only America’s farmers can match ethanol producers’ willingness to rapidly put new technologies to work. American corn growers are producing twice as much grain today as they were in 1980 on virtually the same amount of land. In 1980, farmers averaged a yield of 91 bushels of corn per acre and produced a crop of 6.6 billion bushels. In 2009, just a generation later, farmers produced an average yield of 164.7 bushels per acre and harvested 13.1 billion bushels. This doubling of the American corn crop was achieved by planting just 3% more corn acres in 2009 than was planted in 1980. This dramatic increase in output has come without needing to increase the amount of fertilizer, pesticide, or water use per bushel of production. In fact, input use per unit of output has dropped considerably.



## FACT: Ethanol use in 2011 reduced tailpipe CO2-equivalent emissions by 25.3 million metric tons. That’s equal to the emissions of 4 million vehicles. (Source: GREET Model)

24

# E nergetically Going Green-er

C leaner Air, C leaner E nvironment
All of these improvements mean the total energy and environmental impacts of producing ethanol continue to decrease dramatically. Most recent studies have concluded that corn ethanol reduces GHG emissions by 30-50% compared to average gasoline. Even when hypothetical land use change emissions are included, today’s average corn ethanol is 25% better than gasoline, according to the latest research from Argonne National Lab and Purdue University. In fact, the continued refinement of theories about ethanol’s carbon intensity are showing fewer and fewer emissions from ethanol and greater GHG benefits compared to increasingly environmentally dangerous sources of oil, like Canadian tar sands. Moreover, ethanol’s chemical composition – the ethanol molecule is 35% oxygen – means it helps create a more complete, cleaner burn of fuel in vehicle engines. Increasing ethanol use in gasoline is directly leading to cleaner air and fewer toxic tailpipe emissions of dangerous chemicals like carbon monoxide and benzene. 

## FACT: Energetic Ethanol: The most current measurement of ethanol’s energy balance shows a positive 1.7-2.3 score, meaning ethanol is providing twice the energy it took to produce.



# Getting More O ut than What Goes I n Improving ethanol production efficiencies in concert with new farming technologies means that the energy benefits of ethanol continue to grow. In the most recent research, the U.S. Department of Agriculture determined ethanol’s energy balance to be 1.7-2.3. That is to say, today’s ethanol production yields nearly twice as much energy as it took to create the gallon. The bottom line is fossil fuel producers are going farther and deeper—and using more energy and emitting more GHGs—to extract new sources of oil. These are the marginal sources of oil against which ethanol should be compared, since both unconventional oil and ethanol are the newest entrants into the fuel pool. While new sources of crude oil require more energy for extraction and refining and are increasingly carbon intensive, ethanol’s energy and environmental track record continues to shine.

2012 Ethanol Industry O UTL OO K > < 25

# O pening the D omestic Fuel Market to E thanol
Expanding America’s use of domestic renewable fuel like ethanol will again be the top priority for the industry in 2012. Realizing meaningful growth in the market will require the successful completion of a number of tasks, not all of which can be done in the year to come. 

## E15 and H igher Ethanol Blends: E15 provides the most immediate opportunity to grow the domestic ethanol market and achieve the goals of the RFS. Seeing widespread use and meaningful market share will take time. Simultaneously, efforts to introduce and expand the offers of other ethanol blends like E20, E30, and E85 will be a focus.


## Infrastructure Investments and Modernization: Like much of American infrastructure, the nation’s petro-centric fueling system is in need of an upgrade. The installation of blender pumps to replace older gasoline-only models provides retailers and consumers the same opportunity to pick the fuel blends that are right for them. Through initiatives like the Blend Your Own Ethanol campaign, the industry will be aggressively pushing the adoption of this technology. 

# Regulation as O pportunity?
Industries of all shapes and sizes typically believe more regulations means more challenges and more cost. Too often, that may indeed be the case. But a few new regulations on the horizon may present opportunities for domestic ethanol as well. 

## Meeting F uel Economy Standards with Ethanol: New federal fuel economy and tailpipe GHG emissions standards set to go into effect in 2017 present an opportunity for ethanol blends above E15. Ethanol’s high octane rating (113 for pure ethanol) will be a valuable asset to automakers as engines are designed to utilize octane to increase efficiency. Ethanol’s ability to burn cleaner will help automakers meet the emissions standards too. 

## The Right Carbon Regulations: Properly constructed and science-based carbon regulations would provide an opportunity for ethanol blends as more and more tar sands oil and other marginal sources flood the petroleum market. On a level playing field, there’s no question that ethanol outperforms oil in terms of environmental and climate impacts. Simple, common sense changes to policies at the federal and state level could present market opportunities. These changes will not come easily or overnight. 

# An E thanol C rystal B all

S peculating about what may yet be to come is never an exact science 

## . W hen it comes to 

## A merica 

## ’ s

ethanol industry 

## , however 

## , there is a very clear list o f challenges and opportunities in 

## 2012 and beyond 

## .



# S imple, common sense changes
to policies at the fe d eral an d
state level coul d present
market opportunities.

26

# T he Yeas and Nays
The end of VEETC and the secondary tariff on imported ethanol does not mean that the industry work on legislative issues is over. In many instances, it is just beginning. 

## Defending the R F S: Maintaining the integrity and achieving the goals of the RFS will be a top priority for the domestic industry. Efforts to alter the RFS will be numerous as anti-ethanol voices seek to eliminate the only domestic renewable fuel having an impact in the market today. 

## Tax Policy for the 21st Century: Extending key incentives for advanced and cellulosic ethanol producers, along with a continued push to end handouts to the petroleum industry and level the playing field for all fuels will be important. Ending the tax incentive for ethanol does not end the tax debate for the industry.


## O pening the Market to All: The RFA has and will continue to support the policies, including the Open Fuel Standard (OFS), that will put flexible fuel vehicles on the road, blender pumps in the ground, and give consumers the real choice they deserve. 

# T he Global Puzzle
The increasingly robust global trade in ethanol has emerged as a vital new market for domestic ethanol producers. 

## European Access: European markets have been a strong growth opportunity for US ethanol producers, particularly as European ethanol producers are unable to meet their own renewable energy standards. Ensuring a sensible outcome in the ongoing trade investigation will be essential.


## F air Trade for All: Many of the US ethanol trading partners, and Brazil in particular, have in place prohibitive and variable trade protections that limit US ethanol’s access to the market. With the US tariff now expired, other nations should follow suit to ensure a fair market is developed. Similar issues also exist for ethanol co-products, such as distillers grains.

2012 Ethanol Industry O UTL OO K > < 27

# Myth- B usting

T he perception o f ethanol 

## , ethanol producers 

## , and f armers has been intentionally sullied by industries which seek a status quo

approach 

## . T hese myths 

## , perpetuated and propagated with millions o f dollars o f public relations activities 

## , are easily rejected with a

simple analysis o f the f acts 

## .



# 8 Ethanol uses too much corn.



# 4 Ethanol uses just 26 percent of the nation’s corn crop on a net basis. ( S ource: US D A

, RFA ) 

# 4 Global corn supplies are the largest in history. ( S ource: US D A

) 

# 4 Ethanol production requires just 2/3 of each bushel of corn. The remaining 1/3 is fed to livestock in the form of distillers grains. ( S ource: RFA ) 

# 4 The U.S corn harvest in 2011 was the fourth-largest in history. ( S ource: RFA ) 

# Myth: Facts:

8 Ethanol production raises the price of corn and food.



# 4 Experts from USDA, the World Bank, academia, and other nongovermental organizations all note that a range of factors influence food prices including oil prices, commodity speculation, weather, and monetary policies. 

# 4 According to USDA, American farmers receive just 12.6 cents of every dollar spent on food. ( S ource: US D A

) 

# Myth:
Facts: 8 Ethanol uses more energy than it yields.



# 4 Ethanol production yields 1.7-2.3 units of energy for every unit of energy used in the entire lifecycle process. ( S ource: US D A

) 

# 4 A gallon of ethanol requires 19 times less oil to produce than a gallon of gasoline. ( S ource: U niv. of C alifornia- B erkeley, 2006) 

# Myth: Facts:

282010 Ethanol Industry OUTLOOK 

# Myth- B usting

8 Ethanol production uses too much water.



# 4 Since 2001, ethanol producers have lowered their water requirements by 47 percent. ( S ource: S

. M ueller, U . of IL

- C hicago) 

# 4 Only 15 percent of all corn grown in the U.S. is irrigated. The rest in rainfed. 

# 4 Production of marginal oil sources, like Canadian tar sands, requires up to 8 barrels of water for each barrel of oil produced. ( S ource: P embina I nstitute, C anada) 

# Myth: Facts:

8 Ethanol ruins engines.



# 4 Virtually every engine maker – car, truck, boat, lawnmower – provides warranty coverage for E10 ethanol blends. 

# 4 Ethanol has been a fuel source used safely in America since 1978. 

# Myth: Facts: 8 Ethanol emits more greenhouse gases than gasoline.



# 4 Research from the EPA, the University of Nebraska-Lincoln, and other respected academics show current ethanol production provides greenhouse gas reductions between 30 and 49 percent compared to gasoline. 

# 4 Marginal oil sources, like Canadian tar sands, with which ethanol competes emit three times the greenhouse gases to extract as more traditional oil sources. 

# 4 Ethanol use in 2011 reduced greenhouse gas emissions from vehicles by 25.3 million tons – the equivalent emissions from 4 million vehicles. 

# Myth:
Facts:

2012 Ethanol Industry O UTL OO K > < 29

## Ethanol is a high-octane, cleaner-burning, and cheaper alternative to imported oil for fueling America’s vehicle fleet. The production of ethanol is providing economic opportunity for tens of thousands of Americans, particularly those living in rural areas. Telling consumers the benefits of ethanol, and more importantly where they can buy it, is vital to ensuring the policies enacted are successful.



# RFA at Your S ervice

S ince 

# 1981, the 

## R enewable 

## F uels 

## A ssociation 

## ( R F A ) has been the authoritative voice o f the ethanol industry 

## . O ur members are

committed to helping our country become cleaner 

## , sa f er 

## , and more energy independent 

## . I n creating a f orum f or ethanol producers

and industry stakeholders 

## , R F A has achieved an unequaled record o f results through action 

## , advocacy 

## , and analysis 

## .

With the most experienced staff in the industry, RFA is able to provide timely, comprehensive industry information to our members, Congress, federal and state government agencies, strategic partners, the media and other opinion-leader audiences. RFA has been the industry’s most forceful advocate in expanding the market for ethanol. Just as important, we’ve worked to beat back challenges to ethanol progress from special interests seeking to maintain the fossil fuel status quo. 

# Members Make the D ifference

The success the RFA has been able to achieve on behalf of American ethanol producers is due to the unparalleled support it has received from its member companies. Large and small, publicly-traded and family-owned, the diverse group of RFA members provides unequaled expertise in developing policy positions and pushing market initiatives that thoughtfully and meaningfully expand the production and use of ethanol domestically and abroad. It is the unique structure of the RFA Board of Directors, where each member is given a vote, and its committees that help foster a climate of dialogue and ultimately lead to the positions and practices of the RFA that open markets for our members.

302010 Ethanol Industry OUTLOOK 31 2011 Ethanol Industry OUTLOOK 

# RFA at Your S ervice

Participation S ets RFA Apart
Since its inception, the RFA has recognized that successful advocacy for the American ethanol industry must be more than Washington influence and flashy public relations. Implementing the meaningful policies that have helped create the industry today and will lead to its evolution in the future require the engagement of industry participants and a willingness to address hard issues that often escape the public eye. That is why the RFA offers industry-leading opportunities for ethanol companies and related businesses to engage with their colleageus in setting the course for the future. Through its extensive and experienced committee structure, the RFA is able to address all issues facing ethanol producers from international trade to quality control to market access.



## Technical Committee Accurate and reliable information regarding the production, blending, distribution, and performance of ethanol fuels can mean the difference between success and failure. The RFA Technical Committee is the industry’s leading voice in developing industry standards in coordination with ASTM to ensure the seamless integration of ethanol fuels into the marketplace.



## Co-Products Committee Ethanol production is about more than just ethanol. Distillers grains, corn oil, and a host of other products are routinely part of an ethanol biorefineries’ operations. The RFA Co-Products Committee pursues issues relevant to ethanol co-products, including research, educational programs and regulations. Members of this committee provide reliable data regarding the production, distribution, trade and performance of co-products. 

## Plant & Employee Safety Committee Safety comes first. The RFA Safety Committee has been extraordinarily proactive, leading efforts to provide ethanol producers, transporters and first responders with the information and tools they need to protect their employees and the communities they serve. Working with federal, state and local governments as well as industry partners, this committee has brought much needed attention to hazardous materials regulations and other safety regulations through programs such as the Ethanol Emergency Response Coalition (EERC) and the TRANSCAER® initiative.



## Environmental Compliance Committee Existing to examine and provide guidance on the myriad of environmental regulations ethanol production facilities face, the priority of the RFA Environmental Compliance Committee is to protect the environment while providing a forum for navigating the complex regulations imposed on this industry. Topics frequently leading the agenda include EPA’s Greenhouse Gas Tailoring Rule, Mandatory Greenhouse Gas Reporting Requirements and Industrial Wastewater regulations. This guidance is extraordinarily valuable in helping familiarize producers with environmental regulations relevant to the ethanol industry. 

# RFA has been the in d ustry’s most
forceful a d vocate in expan d ing
the market for ethanol.

2012 Ethanol Industry O UTL OO K > < 31

# RFA in Action

T he 

# R F A is consistently bringing to bear the expertise and resources o f its membership and sta ff in order to expand markets 

## ,
educate a multitude o f audiences 

## , and create an environment conducive to the industry 

## ’ s continued growth and evolution 

## .



# B eltway B litz
The ethanol industry remains underfunded compared to the wealth of the petroleum interests and other energy sectors. But that doesn’t mean we cannot strategically and effectively communicate our
message. Most noticeably, the RFA ran a highly visible, widely discussed ad campaign in the Washington, D.C. metro area that focused on grabbing the attention of lawmakers, regulators, and influencers alike. The ads, focusing on the economic benefit of ethanol at the pump, were seen in Metro trains, on city buses, and in key publications read by D.C. opinion leaders. This campaign, running concurrently with discussions about the ethanol tax incentive in the spring and summer of 2011, was also complemented by television and online advertising on shows and websites frequented by policy makers. The RFA was the only renewable fuel group pressing its case before lawmakers while key discussions and votes were taking place. 

# E xpanding E thanol C onstituencies
As ethanol becomes ubiquitous in America’s gasoline supply, new groups of engine operators are running on ethanol blends. From boaters to motorcycle enthusiasts to classic car owners, more Americans are driving more miles and more hours on ethanol blends than ever before. Taking ethanol’s positive message of performance, job creation, and energy security to these new audiences, the RFA continued its support of the Sturgis Motorcycle Rally at the Buffalo Chip in Sturgis, South Dakota. This event, the third in which the RFA has been a major sponsor, brings ethanol straight to the motorcycle community that is increasingly operating on ethanol blends. The event and partnership with the rally have been widely successful. The RFA is also expanding its advocacy to the boating community. In 2011, the RFA was the official sponsor of the National Boat Racing Association. This premiere boat racing association ran on E10 ethanol blends. Racers competed at high speeds with great engine performance and saw no adverse impacts of ethanol blends. Efforts like these and others underway at the RFA are critical to educating new ethanol users and countering the misinformation perpetuated from those interests that stand in our way.

32

# RFA in Action

S afety First
Nothing surpasses safety as a priority for the RFA and its members. Whether it is employees at ethanol biorefineries or our neighbors in the communities we serve, the ethanol industry takes its safety responsibility seriously. The RFA has been leading the industry’s efforts to educate the nation’s first responders on the characteristics of ethanol-related incidents and providing them with the information, tools, and training they need to respond swiftly and effectively in the unlikely event of an incident. More information is available at www.ethanolresponse.com



# I n Your C ommunity
No advocacy is stronger than individual, neighbor to neighbor outreach. More and more ethanol producers are taking this to heart. Whether it is the increased presence of industry op-eds and letters to the editor, more ethanol-related billboards and advertising, or creative solutions such as advertising before movies in local theaters, RFA member companies are utilizing the advocacy tools developed by the RFA and tailoring to meet the needs of their local communities.



# O ld-fashioned S hoe Leather and E lbow Grease
Long the trademark of the association, the RFA continues to be the leading voice for ethanol producers in Washington and around the world by basing its arguments on sound, well-researched advocacy. Through congressional and executive branch meetings and testimony, the RFA works tirelessly to create the best possible policy framework for American ethanol producers to thrive. Outside Washington, the RFA is increasing its presence in other nations as trade issues gain importance to the industry. All of this is buttressed by the RFA’s industry-leading research and analysis on everything from ethanol production technologies to environmental regulations and scorekeeping to marketplace dynamics. 

# Advanced E thanol C ouncil I n Action

Formed with RFA in 2011, the Advanced Ethanol Council (AEC) has quickly become the leading voice for next generation ethanol in Washington, in the marketplace, and around the globe. The AEC represents worldwide leaders in the effort to develop and commercialize advanced ethanol fuels, ranging from cellulosic ethanol made from dedicated energy crops, forest residues and agricultural waste to advanced ethanol made from municipal solid waste, algae and other feedstocks. The AEC is the only advanced biofuel advocacy group with the singular purpose of promoting advanced ethanol fuels and technologies. 

## The companies making up the AEC include:
Abengoa Bioenergy Beta Renewables BlueFire Renewables Coskata Enerkem Fulcrum Bioenergy Inbicon Iogen Corporation Mascoma Osage Bioenergy Qteros ZeaChem


## W ith Singular F ocus The AEC is laser-focused on accelerating the commercialization of advanced ethanol fuels and technologies by promoting forward-looking and consistent public policy and a more open marketplace for renewable fuels. The AEC is committed to extending tax policies and other incentives that are critical to the development of the industry – such as the Cellulosic Ethanol Producer Tax Credit and the Accelerated Depreciation for Cellulosic Biorefineries - for a length of time that provides investors and producers with the confidence they need to build first-of-kind facilities. The AEC is also committed to maintaining the integrity and structure of the Renewable Fuel Standard (RFS) as it establishes core market demand for cellulosic and advanced ethanol. The AEC also supports accelerating the proliferation of ethanol fuel infrastructure and increasing the number of flex fuel vehicles on the road – provisions that are critical to the long term success of American ethanol production.



## Advanced Ethanol Council

O fficers: C

hairman William Brady, CEO, Mascoma

V

ice C hairman Christopher Standlee , Executive Vice President, Abengoa Bioenergy

E xecutive Director Brooke Coleman

2012 Ethanol Industry O UTL OO K > < 33

## D.C. O ffice
Bob Dinneen P resident & CEO Anne Rhine O ffice A dministrator
Cara Barrett P roject M anager Christopher Findlay A dministrative A ssistant Mary Giglio Director, S pecial P rojects and E vents Matt Hartwig C hief of S taff Edward S. Hubbard, Jr., Esq. L egislative C ounsel
Christina Martin E xecutive V ice P resident Kristy Moore V ice P resident, T echnical S ervices Taryn Morgan C ommunications S pecialist
Alex Obuchowski C hief F inancial O fficer
Samantha Slater V ice P resident, G overnment A ffairs Matt Stuckey IT Director



## St. Louis O ffice Geoff Cooper V ice P resident, R esearch and A nalysis
Ann Lewis P roject M anager



## O maha O ffice
Jen Kracher A dministrative A ssistant Lindsey Bierman M arketing C oordinator Missy Ruff M arket Development M anager Robert White Director of M arket Development Randy Klein Director of M embership The Renewable Fuels Foundation is dedicated to meeting the education, research and strategic planning needs of the U.S. fuel ethanol industry.

The goal is to assure a growing and healthy renewable fuels industry well into the future. The focus of the RFF is toward academia, industry and public policy makers as we address issues related to new uses, new feedstocks and new technologies that will impact the future of ethanol.



## R FF O fficers
Mike Jerke
C

hairman
C

hippewa V alley E thanol C ompany

Bob Sather
V

ice C hairman
A ce E thanol, LLC

Mick Henderson
T reasurer C

ommonwealth A gri- E nergy, LLC

Steve Gardner
S ecretary
E

ast K ansas A gri- E nergy, LLC

34

# RFA b oard of Di r e c t ors

Chuck Woodside, Chairman KAAPA Ethanol, LLC www.kaapaethanol.com
Neill McKinstray, Vice Chairman The Andersons Inc. www.andersonsinc.com
Walter Wendland, Secretary Golden Grain Energy, LLC www.goldengrainenergy.com
Randall Doyal, Treasurer Al-Corn Clean Fuel www.al-corn.com

Bob Dinneen, President Renewable Fuels Association www.ethanolrfa.org
Abengoa Bioenergy Corp. Chris Standlee www.abengoabioenergy.com

ABE South Dakota, LLC Richard Peterson www.advancedbioenergy.com
Absolute Energy, LLC Rick Schwarck www.absenergy.org

Ace Ethanol, LLC Bob Sather www.aceethanol.com
Adkins Energy, LLC Scott Trainum www.adkinsenergy.com

Aemetis, Inc. Eric McAfee www.aemetis.com

Archer Daniels Midland Co. Matt Bruns www.admworld.com
Aventine Renewable Energy Holdings, LLC John Castle www.aventinerei.com
Big River Resources West Burlington, LLC Raymond Defenbaugh www.bigriverresources.com

Central Indiana Ethanol, LLC Gary Drook www.cie.us
Central MN Ethanol Coop Dana Persson www.centralmnethanol.com Chippewa Valley Ethanol Co. Mike Jerke

www.cvec.com Commonwealth Agri-Energy, LLC Mick Henderson www.commonwealthagrienergy.com

Coskata, Inc. Loula Merkel www.coskata.com

Dakota Ethanol, LLC Scott Mundt www.dakotaethanol.com

Didion Ethanol, LLC John Didion www.didionmilling.com
East Kansas Agri-Energy, LLC Steven Gardner www.ekaellc.com

GEVO Jack Huttner www.gevo.com Glacial Lakes Energy, LLC Jim Seurer www.glaciallakesenergy.com
Granite Falls Energy, LLC Tracey Olson www.granitefallsenergy.com

GTL Resources USA Inc. Richard Ruebe www.gtlresources.com
Guardian Energy, LLC Don Gales www.guardiannrg.com

Guardian Lima, LLC Don Gales www.guardianlima.com

Heartland Corn Products Ben Brown
Homeland Energy Solutions, LLC Jim Boeding www.homelandenergysolutions.com
Lincolnland Agri-Energy, LLC Eric Mosbey www.lincolnlandagrienergy.com

Little Sioux Corn Processors, LP Steve Roe www.littlesiouxcornprocessors.com

Mascoma Bill Brady www.Mascoma.com Merrick & Company Steven Wagner www.merrick.com
Mid America Bio Energy and Commodities, LLC Robert Lundeen www.standard-ethanol.com
Mid-Missouri Energy, Inc. Ryland Utlaut www.midmissourienergy.com
New Energy Corp., Inc. Todd Allsop

Pacific Ethanol Inc. Neil Koehler www.pacificethanol.net

Parallel Products Jim Rottman www.parallelproducts.com

Patriot Renewable Fuels, LLC Gene Griffith www.patriotrenewablefuels.com

Penford Products Co. Kevin Keiser www.penfordproducts.com

Platinum Ethanol, LLC Nick Bowdish www.platinumethanol.com
Plymouth Energy, LLC Eamonn Byrne www.plymouth-energy.com
Quad County Corn Processors Delayne Johnson www.quad-county.com
Reeve Agri Energy, Inc. Lee Reeve

Siouxland Ethanol LLC Chuck Hofland www.siouxlandethanol.com
Tate & Lyle Tim Meinhold www.tateandlyle.com
Trenton Agri Products, LLC Charles Wilson www.trentonagriproducts.com
Western New York Energy, LLC Michael Sawyer www.wnyenergy.com 

## Associate Members
AgMotion, Inc. www.agmotion.com AGRA Industries, Inc. www.agraind.com Agri-Fine Corporation www.agri-fine.com AgStar Financial Services www.agstar.com Alfa Laval, Inc. www.alfalaval.com Barr Engineering Company www.barr.com BBI International www.bbibiofuels.com BetaTec Hop Products, A Division of John I Haas, Inc. www.betatechopproducts.com Bosselman Energy www.bosselmanenergy.com BrownWinick www.brownwinick.com Carl Marks Advisory Group www.carlmarks.com CH2M Hill www.ch2m.com Christianson & Associates, PLLP www.christiansoncpa.com
CHS Inc. www.chsinc.com
CIMA Green www.cimagreen.com CoBank www.cobank.com Codexis, Inc. www.codexis.com Consolidated Grain & Barge Co. www.cgb.com CSX Transportation
www.csx.com Dorsey & Whitney, LLP www.dorsey.com Eco-Energy, Inc. www.eco-energyinc.com Fagen, Inc. www.fageninc.com Farm Credit Bank of Texas www.farmcreditbank.com Farm Credit Services of America www.fcsamerica.com FCStone, LLC www.intlfcstone.com Fermentis - S.I. Lesaffre www.fermentis.com Fremont Industries, Inc. www.fremontind.com G Cube Insurance Services www.gcube-insurance.com Gavilon, LLC www.gavilon.com Genencor, A Danisco Division www.genencor.com Gold Eagle Co. www.goldeagle.com Growmark, Inc. www.growmark.com Hawkeye Gold www.hawkgold.com Husch Blackwell, LLP www.huschblackwell.com Hydro-Klean, Inc. www.hydro-klean.com Illinois Corn Marketing Board www.ilcorn.org Indiana Corn Marketing Council www.incorn.org Innospec Fuel Specialties www.innospecinc.com Iowa Corn Growers Association www.iowacorn.org Iowa Renewable Fuels Association www.iowarfa.org KATZEN International, Inc. www.katzen.com Kenan Advantage Group, Inc. www.thekag.com Kentucky Corn Promotion Council www.KYCorn.org Kinder Morgan Inc. www.kne.com Lallemand Ethanol Technology www.ethanoltech.com Lansing Ethanol Services, LLC www.lansingtradegroup.com Leonard, Street and Deinard www.leonard.com Lincoln Energy Solutions www.lincolnenergysolutions.com LLL Holdings, Inc. www.LLLTransport.com M-Pact BioFuels, LLC www.mpactbiofuels.com Midwest Laboratories, Inc. www.midwestlabs.com
Monsanto www.monsanto.com Motiva Enterprises LLC www.motivaenterprises.com Murex, N.A., Ltd. www.murexltd.com Nalco Company www.Nalco.com National Corn Growers Association www.ncga.com National Grain Sorghum Producers www.sorghumgrowers.com Natural Resource Group www.nrginc.com Nebraska Corn Board www.nebraskacorn.org Noble Americas Corp. www.thisisnoble.com NorFalco Inc. www.norfalco.com North American Bioproducts Corp. www.na-bio.com North Dakota Corn Council www.ndcorn.org Novozymes North America, Inc. www.novozymes.com PhibroChem www.phibrochem.com Pinnacle Engineering Inc. www.pineng.com Pioneer, A DuPont Company www.pioneer.com PRX Geographic, Inc. www.prxgeo.com Renewable Products Marketing Group www.rpmgllc.com RSM McGladrey www.mcgladrey.com
SGS www.sgs.com Sojitz Corporation of America www.Us.Sojitz.com Syngenta www.syngenta.com TMO Renewables LTD www.tmo-group.com TransMontaigne Product Services www.transmontaigne.com TranSystems www.transystems.com Trinity Rail Group, LLC www.trinityrail.com U.S. Development Group www.us-dev.com Union Pacific Railroad www.up.com Union Tank Car Company www.utlx.com
Verenium www.verenium.com Victaulic www.victaulic.com
Weaver www.weaverllp.com Western Ethanol Company, LLC www.westernethanol.com 

## Supporting Members
Agricultural Retailers Association www.aradc.org Angelina College www.angelina.edu Bemidji (MN) State University www.bemidjistate.edu Bismarck State College www.bsc.nodak.edu Colorado Farm Bureau www.colofb.com Corn Marketing Program of Michigan www.micorn.org Distillers Grains Technology Council www.distillersgrains.org Downstream Alternatives Ethanol Producers and Consumers www.ethanolmt.org Great Falls Development Authority, Inc. www.gfdevelopment.org Iowa Central Community College www.iccc.cc.ia.us Iowa Central Fuel Testing Laboratory www.iowafuellab.com Jamestown/Stutsman Development Corp. www.growingjamestown.com Kansas Association of Ethanol Processors www.ethanolkansas.org Kentucky Energy & Environment Cabinet – Department for Energy www.eec.ky.gov Maryland Grain Producers Utilization Board www.marylandgrain.com Michigan State University – Department of Agricultural Economics www.aec.msu.edu Milano the New School www.newschool.edu/milano Minnesota Biofuels Association www.MNBiofuels.org
Minnesota Corn Growers Association www.mncorn.org Minnesota Department of Agriculture www.mda.state.mn.us Mississippi State University – Department of Forestry www.cfr.msstate.edu/forestry
Missouri Corn Growers Association www.mocorn.org Morton College www.morton.edu National Corn-to-Ethanol Research Center www.ethanolresearch.com Nebraska Corn Growers Association www.necga.org New Jersey Gasoline C-Store Automotive Association (NJGCA) www.njgca.org Ohio Corn Marketing Program www.ohiocorn.org
REDDI www.reddionline.org South Dakota Corn Growers Association www.sdcorn.org Southeastern Illinois College www.sic.edu Steele-Waseca Cooperative Electric www.swce.coop Sugar Processing Research Institute www.spriinc.org Texas Renewable Energy Industries Association www.treia.org United Association www.ua.org Water Assurance Technology Energy Resources www.waterc3.com Western Iowa Tech Community College – The National Boiler Training and Renewable Fuels Institute www.boiler.witcc.com Western Petroleum Co. www.westernpetro.com Wisconsin Pipe Trades Association www.wipipetrades.org

2012 Ethanol Industry OUTLOOK > < 35

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