There are 19 ethanol plants in Minnesota, producing a high quality product, but as is the case with most other goods, the producers use help marketing their product to consumers and retailers. Renewable Products Marketing Group, or RPMG, a Minnesota-based organization does just that. RPMG is a biofuels marketing company that started out with two producer ethanol plants in 1996 and has since expanded to working with nineteen ethanol plants to market their products. In addition to marketing biofuels, RPMG markets co-products of ethanol production, such as DDGs (a high-protein livestock feed) and corn oil.
Some of the ethanol produced here in Minnesota stays here in Minnesota, yet much of it is exported or shipped to other states for their fuel supply. RPMG markets to these states as well and also exports products. They end up touching many parts of the distribution chain, but their main focus is mostly on getting ethanol and co-products to the consumer.
Compliance
Jessica Hoffmann, Regulatory & Compliance Manager for RPMG, shared with us some of the challenges of marketing biofuels in different states and what it means to have a regulatory and compliance position in the biofuels industry.
In addition to marketing the products in Minnesota, RPMG markets to west coast regions, in places such as California or other areas where state or regional regulatory carbon compliance programs are in place. In her role as Regulatory & Compliance Manager, Jessica has become very familiar with state, federal, and international biofuel and carbon laws. She stated, “Because RPMG has a presence in markets that have adopted various low carbon programs, it is imperative we know how to comply with those laws and can show that the biofuels we are marketing meet the regulatory standards in that area.”
When marketing to regions that have low carbon standards, how does the regulatory and compliance team show that the fuel does meet the standards? One of the ways this is done with ethanol is through calculating CI (carbon intensity) scores. There are several ways to show the CI of a fuel and one is to use a life-cycle assessment (LCA). The GREET model is the most often used LCA and this model shows that ethanol blended fuels can help combat GHG and climate issues. Ultimately, it is better for our air and better for our environment than other methods of fuel (petroleum oil) extraction, production, and refining. It is because of these attributes that ethanol can be marketed in places where they have adopted low carbon programs.
Jessica noted that the way carbon scores are derived (using different models) can change the CI score. Some models may not take into account all the efficiency and vast technological improvements many ethanol plants have seen over the last decade. “For those Minnesota-based plants that work with RPMG, all are contributing very well for reducing their carbon footprint and are continually seeking and implementing opportunities to reduce/lower carbon CI scores – where to become more efficient. They are very conscious of their impact on environment and very mindful of water consumption.” Plants are always looking for ways to reduce emissions and also seeking renewable sources to make sure their products are always staying ahead of the CI standards.
Additional Considerations
RPMG has a strong presence in Minnesota in terms of utilization and consumption of ethanol. Yet, Jessica points out one critical element of this story is actually that it goes beyond our state borders. “Ethanol is ultimately an Ag commodity. We have an opportunity to share it with the rest of the country and rest of the world. In light of the current Ag economy and tariffs/trade right now, the ethanol industry is a great example of a high quality product made in Minnesota that can positively impact a lot of people and lives, not only in Minnesota, but also nationwide and abroad. The LCA aspect of ethanol helps to contribute to that picture.”