Golden Grain Energy

Home grown fuelAs the call for renewable energy reaches fever pitch, Golden Grain Energy finds a solution growing in Iowa. Kate Sawyer reports. Golden Grain EnergyÔÇÖs performance is not based on a corporate hierarchy perched high in a skyscraper, but firmly rooted in the cornfields of Iowa. Its mission is two-foldÔÇöto meet the nationÔÇÖs growing demand for domestic biofuels and reduce our reliance on foreign oil.  To do so, it converts the sugars found in locally grown corn into clean-burning ethanol which can be mixed with traditional gasoline to fuel cars and farm vehicles for significantly reduced emissions. According to a 2007 nationwide poll released by the Renewable Fuels Association, 74 percent of Americans believe we should increase our use of domestically produced fuels like ethanol. In addition, 87 percent of Americans agree the federal government should actively support the development of a renewable fuels industry in this country, and 77 percent think Congress should encourage oil refiners to blend more ethanol into their gasoline products. The future will burn bright for Golden Grain Energy, since major car manufacturers such as DaimlerChrysler and Ford are developing new engine technology that calls for an 85 percent ethanol, 15 percent unleaded blend of gasoline. ÔÇ£A nationwide Renewable Fuels Standard was passed late 2005, mandating the US to reach seven billion gallons of renewable fuels by 2012, with more legislation being passed to reach 12 billion by 2012,ÔÇØ said Walter Wendland, President and CEO of Golden Grain Energy.Established in 2002, Golden Grain Energy has become one of the countryÔÇÖs leaders in renewable biofuels, with annual revenues of more than $110 million and more than 750 owner members. Not only is ethanol an optimal source of energy, it also boasts a considerable return on investment for producers. According to Wendland, one bushel of corn yields approximately 2.8 gallons of ethanol. WhatÔÇÖs more, blenders get a $0.51 credit per gallon from the federal government.Golden Grain Energy recently completed a major expansion of its production facility in Mason City with the intent of literally doubling output. Last year, Golden Grain Energy purchased more than 33 million bushels of locally grown corn and produced 100 million gallons of ethanol. With proper permits and planning, it hopes to increase plant capacity to 150 million gallons in the near future. The company was recognized by the Iowa Renewable Fuels Association (IRFA) in June 2007 for beginning production at the expanded facility. ÔÇ£At a time when OPEC is threatening the US with substantially higher crude oil prices, itÔÇÖs exciting to see a locally owned Iowa ethanol refinery step up to the challenge of delivering an affordable, home-grown renewable fuel,ÔÇØ said Monte Shaw, executive director of IRFA, which represents IowaÔÇÖs ethanol and biodiesel producers.Iowa leads the way in the production of renewable fuels. The state has 11 biodiesel refineries with a combined annual capacity of nearly 200 million gallons. It also has 28 ethanol refineries with the capacity to produce over 1.9 billion gallons annually. There are 19 ethanol refineries under construction or expansion, which will add nearly 1.4 billion gallons of annual capacity.ÔÇ£With ideal infrastructure, corn availability, the support of our community, and the support of our members, it was an easy decision to expand the ethanol refinery in Mason City,ÔÇØ said Wendland. ÔÇ£I feel Golden Grain Energy has the best group of managers and employees in the ethanol business, and we will be up to the challenges of operating what has the potential to be nearly the largest dry mill facility in the nation.ÔÇØ Golden Grain Energy is also investigating new areas of renewable energy. It recently signed a non-binding, collaboration letter with BEST Biodiesel to explore the potential for future partnership. Biodiesel is essentially any traditional vegetable oil formulated to operate diesel engines. At present, according to industry authorities, an investment of approximately $1,200 may convert any diesel vehicle to run exclusively on biodiesel. ÔÇ£BESTÔÇÖs vision is to integrate technologies within existing ethanol plants, creating a real competitive advantage for our ethanol partners,ÔÇØ Tony Janowiec, vice president of BEST Energies, said in the Golden Grain Energy March 2008 newsletter. ÔÇ£Our proprietary ethanol-integrated biodiesel process is the first of many technologies that we plan to bring to our partnership with Golden Grain. ItÔÇÖs all about maximizing existing resources and getting more value out of the same acre of land and the same kernel of corn.ÔÇØ┬á