Energy Challenges For Agriculture

At its November monthly meeting, Camille Abrams, Senior Vice President Finance for energy, processing and food ingredients at CHS offered Agricultural Business Council members an overview of the energy challenges facing the agricultural industry. This breakfast meeting at the Sheraton Crown Center has become a tradition, held during the Agriculture Future of America’s Annual Leaders Conference.

In her initial remarks, Abrams described CHS as a leading farmer-owned energy, agronomy and grains and foods cooperative with a footprint covering 50 states and 65 countries. CHS supplies energy, seed, crop nutrients, crop protection products, grain marketing services, production and agricultural services, animal nutrition products, foods and food ingredients, and risk management services. The company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

CHS’s activity in energy came into sharp focus in 2007, Abrams noted, when Congress authorized the Energy Independence and Security Act (EISA), which was intended to increase U.S. energy security, develop renewable energy production and improve vehicle fuel economy. She explained that renewable diesel economics are policy dependent; and policies make biofuels cost-effective to produce.

Over the past two decades, Abrams said, “sustainability” has been used in a variety of contexts. The word has evolved significantly from environmental consciousness to where the nation is today. CHS calls it a “holistic approach to management that includes efficiency, profitability, risk management, social impacts and long-term success.”  Simply put, environmental conservation and sustainability now mean doing more with less, increasing yields and profits, protecting human resources, providing community support and fostering inclusion and diversity.

Abrams offered these insights as to what it takes to decarbonize fuels. Over the past six months, a CHS sustainability team has conducted an assessment of perceptions and needs related to sustainability. In its push for renewable diesel, E15 and sustainable aviation fuel (SAF), CHS is reporting that renewable diesel is a low carbon drop in fuel; it can be used up to 100% in existing engines; and it can be made from used cooking oil, tallow and vegetable oils. When E15 is approved, it could increase demand by up to 50%. The team also confirmed that low carbon farming practices and carbon capture at ethanol plants will lower carbon emissions. CHS is also looking into the future potential of ethanol as a sustainable aviation fuel (SAF).