In the News
Lyons, KS - February 5, 2020 - Whitefox Technologies is pleased to announce that Kansas Ethanol LLC is to install Whitefox ICE™ membrane dehydration system at its 77 million gallons per year (mmgy) plant in Lyons, Kansas.
Mike Chisam, President, and CEO of Kansas Ethanol, said, "We are first and foremost pursuing avenues to reduce our operating costs and ways to lower our carbon intensity to capitalize on low-carbon fuel markets. We also want to improve our overall operations and debottleneck existing process units. After meeting with the team at Whitefox Technologies, we knew their system and team was the right one for us. We look forward to getting the system installed and running."
Stephan Blum, Whitefox Technologies Chief Technical Officer, said, "Kansas Ethanol is already an efficient and well-managed plant. The addition of Whitefox ICE™ will further improve their overall efficiency in operations by eliminating recycle streams and fluctuations in distillation and dehydration. Whitefox ICE™ will enable Kansas Ethanol to increase production by an average rate of 30,000 gallons per day.
"This increase, and the operational improvements will keep them highly competitive in low-carbon markets and have a positive impact on their bottom line.”
Whitefox Technologies CEO, Gillian Harrison, said, “It’s great to be working with the team at Kansas Ethanol to further improve their energy and operational efficiency. It will be our first plant in this important state and our ninth ICE solution. This takes us to over 100 mmgy of installed membrane capacity, which is an exciting milestone.”
Kansas is home to 12 ethanol plants and produces nearly 500 million gallons peryear of renewable, clean-burning ethanol fuel.
Learn more about Whitefox Technologies here
Jan 28, 2020
A U.S. court decision last week striking down three biofuel waivers that the Environmental Protection Agency gave oil refineries in 2017 has cast doubt on the legitimacy of dozens of other EPA exemptions granted under similar circumstances, according to industry experts and agency data.
That spells uncertainty for a handful of independent refiners that secured lucrative waivers from the Trump administration, and could fire up prices for the biofuel blending credits those facilities need to comply with the nation’s biofuel law.
“The potential ramifications are huge,” said James Stock, an economist and professor at Harvard University who has researched biofuel policy.
Under the U.S. Renewable Fuel Standard, oil refineries are required to blend billions of gallons of biofuels such as ethanol into their fuel or buy credits from those that do. The EPA can waive those obligations if they prove compliance would cause them financial distress.
The biofuel industry has been incensed by a near quadrupling of waivers granted by the Trump administration, saying it is undermining demand for corn-based ethanol. The oil industry argues the waivers are needed to protect refining jobs, and says the waivers do not affect actual ethanol usage.
The U.S. Court of Appeals for the 10th Circuit on Jan. 24 vacated here three biofuel waivers the EPA granted in 2017 to two small refineries owned by HollyFrontier and one by CVR Energy, which is controlled by Trump ally and billionaire investor Carl Icahn.
According to the court's decisihere the EPA overstepped its authority to grant the waivers because the refineries had not received exemptions in the previous year. The court said the RFS is worded in such a way that any exemption granted to a small refinery after 2010 must take the form of an "extension."
It also noted research showing oil refineries are able to pass the costs of complying with the RFS to consumers by raising fuel prices, suggesting the waivers were not needed to help the oil refineries financially.
Officials at Holly Frontier and CVR were not immediately available to comment. EPA spokesman Michael Abboud said the agency is reviewing the decision.
A coalition of biofuel industry groups had challenged the three exemptions, bringing the suit. Those groups hope the court decision can eventually be applied to other waivers because the issues in question apply more broadly, said Geoff Cooper, president of the Renwable Fuels Association industry group.
According to EPA data here the agency granted seven biofuel waivers in 2015. That number rose to 35 in 2017 – meaning 28 waivers were given without having been given in a previous year. The EPA does not name the refineries that receive the waivers, arguing the information is confidential, but Reuters has reported here that some have gone to small facilities owned by large companies like Exxon Mobil and Chevron Corp.
Harvard’s Stock said the case threatens to hit small oil refineries hard if it means the waivers will be rescinded and they must comply with the RFS.
“All of a sudden there would be vast amounts of past obligations due, combined with the prospect of very limited (waivers) going forward,” he said.
Prices of blending compliance credits, known as Renewable Identification Numbers (RINs), are up about 20% since the court decision to one-month highs.
Ericka Perryman, a spokeswoman for the American Fuel and Petrochemical Manufacturers refining industry group, said AFPM was “carefully reviewing the opinion and potential implications.”
Read the original story here: Court Decision Casts Doubt On Dozens Of US Refinery Biofuel Waivers
Jan 27, 2020
In a decision that is expected to broadly impact the Environmental Protection Agency’s approach to granting small refinery exemptions (SREs) under the Renewable Fuel Standard, the U.S. Court of Appeals for the Tenth Circuit late on Friday struck down three exemptions that were improperly issued by EPA.
The court ruling stems from a May 2018 challenge brought against EPA by the Renewable Fuels Association, the National Corn Growers Association, the American Coalition for Ethanol and National Farmers Union.
“We are extremely pleased with the Tenth Circuit’s decision to vacate the waivers granted by EPA to three refineries owned by CVR Energy and HollyFrontier,” said RFA President and CEO Geoff Cooper. “The Court has affirmed our long-held position that EPA’s recent practices and policies regarding small refinery exemption extensions were completely unlawful. And while the decision addresses three specific exemptions, the statutory interpretation issues resolved by the court apply much more broadly.”
Among other findings, the Court held that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. According to the Court opinion, “the statute limits exemptions to situations involving ‘extensions,’ with the goal of forcing the market to accept escalating amounts of renewable fuels over time. None of the three small refineries here consistently received an exemption in the years preceding its petition. The EPA exceeded its statutory authority in granting those petitions because there was nothing for the agency to ‘extend.’” EPA’s own data show that a maximum of only seven small refineries could have received continuous extensions of their previously existing exemptions. Yet, recently EPA has granted as many as 35 exemptions in a single year.
“The Court’s decision is welcome news for corn growers,” said National Corn Growers Association President Kevin Ross. “Ethanol is an incredibly important value-added market for corn farmers, and EPA’s waivers have reduced RFS volume requirements by more than 4 billion gallons over the past three years, impacting corn demand. We are optimistic this decision will finally put an end to the demand destruction caused by waivers and keep the RFS back on track.”
The Court also found that EPA abused its discretion in failing to explain how the Agency could conclude that a small refinery might suffer a disproportionate economic hardship when the Agency has simultaneously consistently maintained that costs for RFS compliance credits, or RINs, are passed through and recovered by those same refineries.
“ACE members are elated the Tenth Circuit court agreed with us that EPA overstepped its authority in granting three specific small refinery exemptions to CVR Refining and HollyFrontier,” said American Coalition for Ethanol CEO Brian Jennings. “The court’s ruling highlights how EPA abused the SRE provision of the Renewable Fuel Standard in broader terms to unfairly enrich the oil industry which could have far-reaching implications on the legitimacy of other refinery waivers and limit how they can be used moving forward.”
According to the renewable fuels coalition, the Court’s decision sends a resoundingly positive signal to the marketplace at a time when it is desperately needed.
“This ruling comes at a critical time for America’s farmers and the biofuels industry,” said National Farmers Union President Roger Johnson. “Due in large part to EPA’s rampant and ongoing abuse of the SRE program, 2019 was one of the most challenging years in history for the agriculture and biofuel sectors. We believe this ruling will help restore the ability of the RFS to drive demand and expand markets for renewable fuels, as Congress intended, providing a badly needed shot in the arm for rural America.”
The Court’s opinion is available here.
WEST LAFAYETTE, Ind. – Since 1990, the United States has ramped up its production of biofuels — to about 16 billion gallons of ethanol and 1.6 billion gallons of biodiesel in 2017. At the same time, production of palm oil has increased nearly sixfold, mainly for food production, and with it significant deforestation in Indonesia and Malaysia.
That overlap has led some analysts to blame the United States for deforestation in Indonesia and Malaysia, suggesting that the expansion in palm oil production is driven by biofuel production in U.S. But a Purdue University study shows that only a scant fraction of the deforestation in those countries can be pinned on U.S. biofuel production and policy.
“Our analysis shows that less than 1 percent of the land cleared in Indonesia and Malaysia can be tied to U.S. biofuel production,” said Farzad Taheripour, a research associate professor of agricultural economics at Purdue. “The amount is not significant. We’re talking about thousands of hectares amidst the millions that have been cleared for oil palm plantations and production of other commodities in Malaysia and Indonesia.”
Taheripour and the late Wally Tyner, who was the James and Lois Ackerman Chair in Purdue’s Department of Agricultural Economics, published their results in the journal Biotechnology for Biofuels based on analysis from the GTAP-BIO model, a Purdue-led economic model of the global economy available to researchers around the world for quantitative analysis of international economic-environmental-energy issues. The model included a more comprehensive look at demand for all types of vegetable oils and fats impacted by U.S. biofuel policies rather than focusing on only soy and palm as past studies have done.
“Those analyses that limit their modeling framework to only palm and soy oils and ignore other types of vegetable oils and fats provide misleading information and exaggerate about the land use implications of the U.S. biofuels for (Malaysia and Indonesia),” the authors wrote.
As the United States uses soybeans and corn to produce biofuels, one could expect less soybeans and corn will remain for other uses, including exports. That could generate some land use changes and deforestation across the world including Malaysia and Indonesia, which clear natural land to plant palm oil trees and other commodities.
“But we’ve not seen that happen. In the U.S, we have lots of unused land available to farmers who can convert it to corn or soybeans. There has been no need to cut forests here,” Taheripour said. “In addition, crop productivity has increased significantly over time, providing more yield on the same amount of land. Because of those, the expected deforestation or conversion of natural land has not had to largely happen to account for U.S. biofuel production.”
Countries that import U.S. corn and soybeans also benefit from yield increases and use of other types of oils, such as canola, sunflower and cottonseed. It’s more likely that growing populations in countries such as India, China, and rest of Asia are mainly fueling the demand for oil palms grown in Malaysia and Indonesia. The U.S. uses little palm oil for food, just under 2 percent of the palm oil produced worldwide.
When considering all those factors, U.S. biofuel production accounts for fewer than 60,000 hectares — or 0.5 percent — of the more than 11.7 million hectares of natural land cleared in Malaysia and Indonesia between 2000 and 2016.
“Production of biofuels in the U.S. generates some land use effects in Malaysia and Indonesia due to market-mediated responses, in particular through the links between markets for vegetable oils,” the authors wrote. “These effects are minor compared to the magnitude of land use change in Malaysia and Indonesia.”
The U.S. National Biodiesel Board Foundation and the U.S. Federal Aviation Administration funded the research.
Read more on the study here.
Jan 20, 2020
Neste, the world's largest producer of renewable diesel and renewable jet fuel refined from waste and residues, will deliver renewable jet fuel (sustainable aviation fuel, SAF) to Zurich Airport during the World Economic Forum 2020 in Davos, Switzerland. This is the first time SAF is available in Switzerland.
Neste MY Renewable Jet Fuel™ has up to 80% smaller carbon footprint compared to fossil jet fuel. As a result of close collaboration between Neste, Jet Aviation and Zurich Airport, this sustainable aviation fuel will be blended with fossil jet fuel. Business jets operating in Zurich during the World Economic Forum event in Davos can avail of sustainable aviation fuel.
“Jet Aviation is committed to investing in solutions that provide business aviation owners and operators the choice to contribute to sustainable aviation. With a view to the future, these pilot schemes offer the distinguished world leaders flying into Zurich for WEF viable options in which they may collaborate. This is an important milestone in Jet Aviation’s journey to support the aviation industry’s sustainability goals,” says David Paddock, Jet Aviation President.
“We are very excited about Neste MY Renewable Jet Fuel being now available for the first time at the Zurich airport. The aviation industry has set clear targets for a more sustainable future. And as the world leaders gather at the World Economic Forum, we are proud to cooperate with Jet Aviation and Zurich Airport and offer WEF visitors our sustainable aviation fuel, which contributes to efficient reduction of aviation related greenhouse gas emissions. We will continue close collaboration with partners to support the aviation industry in reaching its ambitious emission reduction targets,” says Thorsten Lange, Neste’s Executive Vice President for Renewable Aviation.
Aviation is a key enabler of the global economy, connecting people and businesses across the globe. At the same time, the aviation industry accounts for approximately 2-3% of global man-made CO2 emissions and global aviation is growing. The aviation industry has set bold targets to reduce aviation-related emissions, including carbon-neutral growth from 2020 onwards and a 50% reduction of net aviation carbon emissions by 2050. Sustainable aviation fuels are seen as an important part of the solution.
Neste MY Renewable Jet Fuel is based on Neste’s proprietary NEXBTL technology and produced from 100% renewable waste and residue raw materials. It is fully compatible with the existing jet engine technology and fuel distribution infrastructure when blended with fossil jet fuel. In the US and Europe, the company’s renewable jet fuel annual capacity is currently 100,000 tons. With further production expansion on the way, Neste will have the capacity to produce over 1 million tonnes of renewable jet fuel globally by 2022.
Jan 16, 2020
President Donald Trump and Chinese Vice Premier Liu He signed a “phase one” trade deal Wednesday at the White House, an agreement that should pave the way for China to uphold its pledge to purchase up to $80 billion in agricultural goods over the next two years and make structural changes that should provide U.S. grains products improved access to the Chinese market over the long term.
The agreement is set to go into effect on Feb. 14, 30 days after the signing. The deal itself runs more than 90 pages and reportedly also includes confidential sales targets for a full range of U.S. agricultural products, including grains, distiller’s dried grains with solubles (DDGS) and ethanol.
U.S. Grains Council (USGC) Chairman Darren Armstrong, a farmer from North Carolina, was among the farmers and others who attended the agreement’s signing.
“The Council is pleased to see the signing today of a phase one deal with China, which should reduce continued market uncertainty and incentivize China to purchase significant amounts of U.S. agricultural products,” he said in a statement released on Wednesday.
“The structural reforms in the agreement – once fully committed and implemented – will hopefully offer lasting impacts beyond short-term commitments to make accelerated, market-driven purchases. The agreement, as we understand it, will offer opportunities for U.S. farmers to once again become competitive in China and serve our customers by addressing retaliatory tariffs and long-standing, non-tariff barriers to trade.”
Despite ongoing trade tensions, the Chinese market holds immense growth potential for U.S. agriculture. China is the second largest corn producer and consumer behind the United States and, in the past, was the world’s largest importer of sorghum and DDGS. These feed ingredients supply the world’s largest swine, aquaculture and egg industries, the second largest poultry industry and growing dairy and beef operations.
In the run up to the event, the Trump Administration also removed China’s formal designation as a currency manipulator since the deal includes commitments from China to upgrade its currency practices and refrain from further competitive devaluation. This and the warm reception at the deal’s signing are considered signs of improved relations between the two countries.
Over the years, the Council has leveraged its capital and expertise to help advance China’s food security, safety and sustainability through trade. It has been at the forefront of helping local producers lead modernization of China’s swine industry, a dairy technical training center and myriad of other trade servicing tasks. In recent years, the Council’s China office has offered technical and logistical input as China seeks to diversify its fuel supply and achieve environmental benefits by blending fuel ethanol.
“Our organization and our members believe in the long-term value of international trade,” Armstrong said. “We have spent more than 35 years working with partners in China to develop its feed and livestock industry. Our sector is committed to remaining a reliable supplier of grain products and ethanol for customers in the feed, food and energy industries in China as our countries’ relationships evolve.”
The Trump Administration has said there will be a second phase of negotiations, though it may not be concluded until after the presidential election in November.
Read More on the deal here.
Jan 15, 2020
The U.S. Energy Information Administration maintained its December forecast that U.S. ethanol production will average 1.03 million barrels per day in 2020 in its latest Short-Term Energy Outlook, published on Jan. 14. That level of production is expected to continue through 2021.
In the STEO, the EIA notes that U.S. ethanol producers experienced weakening operating margins last year as a result of limited demand growth and oversupply. As a result, ethanol production fell for the first time in seven years, down 2 percent from 2018 levels to an average of 1.03 million barrels per day. The EIA currently forecasts that limited domestic and global demand growth potential will result in ethanol production staying largely unchanged in 2020 and 2021.
Ethanol consumption averaged 951,000 barrels per day last year. The EIA predicts consumption will fall to 947,000 barrels per day this year, and 945,000 barrels per day in 2021, driven by falling motor gasoline consumption. The predicted level of consumption would result in the ethanol share of total gasoline, which was estimated at 10.1 percent in 2018 and 10.02 percent in 2019, remaining relatively flat in 2020 and 2021. The EIA said that stable ethanol share assumes growth in higher level ethanol blends is limited by a combination of unfavorable blending economics compared with gasoline, depressed renewable identification number (RIN) prices, and limited consumer demand for ethanol blends beyond 10 percent.
Biodiesel production fell by nearly 2 percent from 2018 to 2019, averaging approximately 119,000 barrels per day last year. The EIA said it expects biodiesel production to increase by 13 percent this year to 135,000 barrels per day, and by 17 percent in 2021, reaching 158,000 barrels per day. The increase is expected to be driven by increasing Renewable Fuel Standard targets and the renewal of the biodiesel production tax credit through 2022.
Net imports of biomass-based diesel were up 47 percent, reaching 23,000 barrels per day in 2019. The EIA expects net imports to increase to 28,000 barrels per day this year and 39,000 barrels per day in 2021. The expected increase is attributed to increased volumes of renewable diesel imported to meet both the California Low Carbon Fuel Standard requirements and rising RFS targets.
The EIA’s most recent weekly data shows ethanol production reached a near record high of 1.095 million barrels per day for the week ending Jan. 10, up from 1.062 million barrels per day the previous week.
Ethanol ending stocks reached 23.006 million barrels the week ending Jan. 10, up from 22.462 million barrels the previous week.
The agency’s most recent monthly data shows the U.S. imported 522,000 barrels of ethanol in October, all from Brazil. During the same month, the U.S. exported 2.689 million barrels of ethanol, primarily to Canada, India, and Brazil.
Read the original story here: EIA Predicts Ethanol Production Will Remain Flat Through 2021
Jan 10, 2020
The U.S. Government Accountability Office (GAO) will review the Trump administration’s use of waivers exempting oil refineries from the nation’s biofuel blending requirements, according to a letter dated Friday, after lawmakers called for an investigation.
The so-called Small Refinery Exemptions are intended to protect refineries in financial distress from the cost of blending ethanol into gasoline, but the U.S. corn lobby and its representatives have accused the administration of overusing them to help oil companies at the expense of farmers.
The GAO, a congressional watchdog unit, accepted the request from lawmakers - including Iowa Representative Abby Finkenauer, Minnesota Representative Collin Peterson and Illinois Representative Rodney Davis - to examine the administration’s handling of the waivers handed out for the 2018 compliance year.
The group in August had asked the GAO in a letter to review the factors that the Trump administration’s Environmental Protection Agency considered in approving the waivers, and to examine the Department of Energy’s process for recommending exemptions to EPA, according to the letter.
“GAO accepts your request,” GAO Managing Director of Congressional Relations Orice Williams Brown wrote to the lawmakers in its response dated Jan. 10. The letter said work will begin “shortly” on the review.
Under the U.S. Renewable Fuel Standard, refineries are required to blend 15 billion gallons of ethanol annually. But the EPA can exempt small facilities that demonstrate compliance would hurt them financially.
The EPA has roughly quadrupled the number of waivers it has been granting to oil refineries since Donald Trump became president. The agency has also routinely waived higher volumes than the DOE has recommended.
The EPA’s decision in August to grant 31 oil refiners exemptions to the rules for the 2018 compliance year prompted the latest wave of outrage from farmers and producers of the corn-based fuel.
The Corn Lobby argues that the exemptions hurt demand for ethanol, while the oil industry disputes that claim and says the blending requirements cost them a fortune.
“Our concerns stem from the economic consequences to our rural communities created by exempting nearly 4 billion gallons of fuel from the RFS, a standard intended to expand the nation’s renewable fuels sector,” the lawmakers’ August letter said.
A recent effort to quell anger in the Farm Belt over the exemptions largely fell flat after the EPA in December announced a finalized rule for 2020 blending requirements that the biofuels industry criticized as inadequate.
Read the original story here : Congressional Watchdog To Review Trump Administration's Use Of Biofuel Waivers
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Jan 7, 2020
U.S. ethanol exports receded in November, decreasing 5% to 107.3 million gallons (mg), according to data issued today by the government and analyzed by the Renewable Fuels Association (RFA). However, the Brazilian export market was reinvigorated despite the restrictive tariff rate quota limiting volumes that can enter the country duty-free. Brazil doubled its purchases and overtook Canada as our top customer for the first time since April.
Two-thirds of all U.S. ethanol exports in November landed in Brazil (27.0 mg, +131%), Canada (26.8 mg, -11%), and Colombia (12.5 mg, +47% to a record high). U.S. shippers also sent sizable volumes to Oman (9.4 mg following zero in October), South Korea (9.0 mg, -3%), and the European Union (8.7 mg, +4%). November ethanol sales imply an annualized export volume of nearly 1.5 billion gallons which, if realized, would be the second-largest volume on record.
Shipments of U.S. undenatured fuel ethanol slowed in November by 11% to 52.8 mg. Half of exports were destined for Brazil (27.0 mg, +131%) with the remainder dispersed among another dozen countries including Nigeria (4.7 mg, up from zero), the Netherlands (4.6 mg, +84%), India (3.3 mg, -81%), and South Korea (3.2 mg, +14%). Notably, sales to Mexico scaled back 91% to under 200,000 gallons.
Sales of U.S. denatured fuel ethanol picked up in November, pressing 13% higher to 51.9 mg. Roughly half of exports (25.3 mg) moved north to Canada, despite an 11% decrease to the smallest volume since May. Remaining shipments of denatured fuel ethanol were distributed primarily to Colombia (11.2 mg, +56%), Oman (9.4 mg, up from zero), South Korea (5.1 mg, -10%), and Peru (0.7 mg, -69%).
Exports of U.S. ethanol for non-fuel, non-beverage purposes slipped 67% to 2.6 mg. The majority of undenatured product shipped to Canada (0.9 mg), South Korea (0.7 mg), and Saudi Arabia (0.5 mg), while most denatured product landed in Canada (0.2 mg) and the Dominican Republic (0.1 mg).
Imports from Brazil intensified in November as the U.S. purchased its second-largest volume of cane ethanol in a year, up 16% to 25.4 mg. Total U.S. ethanol imports for 2019 now stand at 189.4 mg—nearly triple the volume imported last year during the same period. Consequently, the U.S. is on pace to log over 200 mg by year end.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—rebounded in November, jumping 20% to 911,569 metric tons (mt). Sales to Mexico rallied with a 36% increase in DDGS heading southbound, or 200,669 mt (a six-month high), again marking its place as our top customer (22% of our export market). Sales also took off in South Korea (105,328 mt, +51%) and Thailand (88,424 mt, more than triple October exports). Vietnam (84,188 mt, -29%), Indonesia (72,698 mt, +13%), Turkey (54,449 mt, up from zero), and the European Union (41,588 mt, +116%) rounded out our top markets in November. Total year-to-date exports of U.S. DDGS stand at 10.02 million mt, which implies an annualized export volume of 10.93 million mt.
Read more here: U.S. Ethanol Exports Ease Despite Pop in Sales to Brazil while U.S. DDGS Shipments Surge Higher
December 17, 2019
By the U.S. Grains Council
A chill in the air did not damper the excitement of a team of Peruvian buyers and nutritionists who traveled to Minnesota in November—organized by the U.S. Grains Council—to gain a better understanding of the production, quality control and usage of U.S. dried distiller’s grains with solubles (DDGS).
The Council’s DDGS promotion efforts in Peru had previously focused mainly on the largest producers in the poultry industry and dairy producers, who have been the most frequent users of the feed ingredient. Now, the Council is expanding contact to other potential end-users representing mid-size poultry companies and the beef cattle sector to create additional demand for DDGS.
For example, one livestock producer on the team produces around 30,000 metric tons of feed per month for its own poultry, swine and dairy operations. Even a low DDGS inclusion rate of 5 percent could add 1,500 tons of monthly demand for DDGS in Peru.
“We invited poultry and beef producers with very limited knowledge of DDGS and who had never used the feed ingredient in their operations,” said Ana Ballesteros, USGC marketing director for the Western Hemisphere, who accompanied the team. “Because these end-users have less knowledge, creating awareness is an important initial step for them to consider purchasing U.S. DDGS in the future.”
The mission included a DDGS nutritional short course at the University of Minnesota, visits to two ethanol plants, a feed plant producing DDGS for poultry and turkey rations, trading operations and corn farms, including the farm of USGC Secretary-Treasurer Chad Willis. At these meetings, attendees discussed corn and ethanol production in addition to how the quality of DDGS is controlled from the receiving of grain at the ethanol plant through the final loading into railcars and trucks.
“The team learned how DDGS has evolved as a product and how corn, poultry and livestock production and ethanol production are carefully linked and support each other in the U.S. corn belt,” Ballesteros said. “They also gained an understanding of how U.S. farmers produce corn with their families and the role that cooperatives and associations play in supporting that work.”
The Council will continue to follow-up with the Peruvian companies that have participated in activities like this trade team as well as seek out new potential end-users and influencers, including independent consultants and formulation companies.
“Educational efforts have proven to be effective for building knowledge and confidence among users,” Ballestros said. “The program accomplished its immediate and desired outcome of creating awareness of U.S. DDGS and an understanding of its production and usage in livestock diets.”
Read the original article: USGC: Peruvian Team Braves Minnesota Cold to Learn About US DDGS
December 2019
By Jennifer Dlouhy
The Trump administration on Thursday set relatively flat quotas for plant-based fuels in 2020, rebuffing ethanol and biodiesel allies who said the targets don’t do enough to support the industry.
The Environmental Protection Agency will require refiners to use 20.09 billion gallons of renewable fuel in 2020, a 0.85% increase over the 2019 requirement for 19.92 billion gallons, largely tracking a proposal released in July. The agency is also sticking with its plan for adjusting blending requirements to offset waivers exempting some refineries from the mandates, despite criticism from biofuel allies in politically important farm states that the approach is inadequate.
EPA officials say that with those adjustments, the agency’s plan effectively lays out a 2020 target for 15.8 billion gallons of conventional renewable fuels, including corn-based ethanol, with that translating to 15 billion gallons once refinery waivers are factored in. A senior EPA official said the strategy allows the agency to better ensure targets are actually met while still giving small refineries relief from the requirements when appropriate.
“President Trump committed to our nation’s farmers that biofuel requirements would be expanded in 2020,” EPA Administrator Andrew Wheeler said in a news release. “At the EPA, we are delivering on that promise and ensuring a net of 15 billion gallons of conventional biofuel are blended into the nation’s fuel supply.”
Shares in biofuel producer Pacific Ethanol Inc. pared gains after the announcement, as did corn futures in Chicago.
Under the EPA rule, refiners are expected to use 5.09 billion gallons of advanced biofuel, including 590 million gallons of cellulosic biofuel. And in 2021, refiners and fuel importers will be required to use 2.43 billion gallons of biomass-based diesel made from soybeans and waste cooking oil -- identical to the 2020 target.
For weeks, biofuel producers, farmers and politicians from the U.S. Midwest unsuccessfully implored administration officials -- including President Donald Trump himself -- to alter the EPA’s approach so that it better assures biofuel quotas aren’t undermined by refinery waivers. They say the EPA measure falls short by basing adjustments on a three-year average of Energy Department recommendations on those refinery waivers -- rather than the higher number the EPA has actually granted.
“EPA is playing games and not helping President Trump with farmers,” said Senator Chuck Grassley, a Republican from Iowa. “No matter what EPA says about the impact of its waivers to oil companies making billions in profits, farmers and biofuels producers know and feel the negative impact of the agency’s actions.”
The EPA plan left both sides unhappy Thursday. In addition to the refinery waiver change, biofuel boosters had unsuccessfully sought more aggressive quotas to drive production. Meanwhile, oil companies broadly argued the measure will spur imports of foreign biofuel and complained the EPA’s reallocation plan forces larger refineries to bear an unfair burden as blending requirements are raised for those non-exempted facilities.
Oil industry leaders vowed to challenge the rule in federal court, with the American Fuel and Petrochemical Manufacturers calling the measure an “unprecedented overreach.” “There is no basis to consider forcing non-exempt refineries to subsidize their competitors,” the group said in an emailed statement.
The EPA said it will more closely adhere to Energy Department recommendations for refinery exemptions in the future, and a senior EPA official told reporters the agency will demonstrate that commitment with the next batch of waiver decisions, expected in early 2020.
But Senator Joni Ernst, a Republican from Iowa, stressed that voters in her state are hesitant “to trust the word of EPA to actually follow through on that commitment,” even though “President Trump wants to do right for the biofuels community.”
Biofuel advocates demonstrated their skepticism Thursday. The National Corn Growers Association said farmers were “underwhelmed” by the final rule, because of the risk future refinery waivers will exceed the EPA’s adjustments. And the National Biodiesel Board said the EPA’s approach “does not provide assurance to the biodiesel and renewable diesel market” because “there is nothing in today’s rule to ensure that the agency will get these exemptions under control.”
The National Farmers Union accused Trump of breaking his “promise to rural America,” with group vice president Rob Larew saying the administration wasn’t doing enough to “make amends” for years of refinery waivers.
Other biodiesel leaders struck a more hopeful tone, still buoyed by an agreement between the White House and Congress to retroactively renew a lapsed $1-per-gallon tax credit that helps the fuel compete against petroleum-based diesel. Gene Gebolys, chief executive of biodiesel producer World Energy Alternatives LLC, said he was encouraged “the president now recognizes the damage done and has committed to stopping it from happening again.”
Read the original article: Trump Rebuffs Corn Farmers With Status Quo on Biofuels
December 16, 2019
By Green Plains Inc
Green Plains Inc. and Novozymes today announced an exclusive partnership and commercialization agreement for biological solutions in the production of high protein ingredients. The partnership will be aimed at aquaculture, pet food, as well as novel ingredients to be used in the global protein markets.
The collaboration will utilize the biorefinery footprint, process know-how, and global distribution capabilities of Green Plains together with Novozymes’ vast expertise in microbiology to create a diverse range of value-added products resulting in functional proteins. Specifically, the biological solutions of Novozymes will be combined with Green Plains’ first high protein production facility and Optimal Aquafeed’s aquaculture laboratory in Shenandoah, Iowa, with the intention to create one of the leading end-to-end innovation platforms in the world for aquaculture nutrition.
“This exclusive technology partnership is another step in the transformation of Green Plains to a world class protein provider,” said Todd Becker, president and CEO of Green Plains. “By partnering with Novozymes, we believe we will be able to increase the value of the products we produce every day and together provide solutions for our nutritional partners in the aquaculture, animal feed, and companion animal food markets worldwide.”
“We are really excited to further utilize advanced biology to unlock additional commercial opportunities in protein production in biorefining together with our customers,” said Brian Brazeau, Novozymes’ vice president for bioenergy commercial and president of North America. “In line with our updated strategy, the partnership with Green Plains is yet another example of how we use enzymatic and microbial solutions to help bring biological answers to the challenge and opportunity of growth in global protein demand.”
Novozymes’ existing suite of biotechnology will help Green Plains achieve higher concentrations of protein. As part of the agreement, Novozymes will dedicate research and development resources to also look at new molecules and yeasts to test in Green Plains processes to further enhance protein products and ultimately create different, higher value outputs from Green Plains’ biofuels production facilities.
“As we continue to roll out high protein nutritional solutions for our customers, we expect to create a company with predictable and growing earnings and become much less dependent on our traditional business structure,” added Becker. “This is a continuation of the transformation of Green Plains to a leading nutritional and ag-tech company focused on developing value-added products for animal feed and aquaculture customers globally fully utilizing the production capabilities we have in place today.”
“This will extend Novozymes’ reach into the agricultural supply chain as our biological solutions will touch a much larger portion of the animal feed market,” finished Brazeau. “The collaboration will enable better business for our customers and help meet the need for evermore protein.”
The companies plan to begin implementation of the partnership in the first quarter of 2020.
Read the original article: Green Plains, Novozymes Partner on Protein Production
December 17, 2019
By Shuping Niu, Steven Yang, Miao Han, and James Mayger
Further details are emerging on how China would increase imports from the U.S. by as much as $200 billion over the next two years in order to meet its commitments under the phase one trade deal announced last week.
That accord, yet to be officially signed, includes reaching purchases of $40 billion to $50 billion per year in agricultural commodities, a level some analysts have doubted is feasible. To help attain that figure, Beijing plans to restart purchases of ethanol by lifting or waiving trade war tariffs on the fuel, said people familiar with the matter, who asked not to be identified discussing the plans.
In addition, China is considering re-routing trade that currently passes through Hong Kong to mainland ports, the people said. That could enable around $10 billion a year in goods transshipped there from the U.S. to be directly booked in the mainland, boosting the tally. The U.S. does not count shipments that go through Hong Kong as part of its trade with China.
Leaders are carefully weighing how to approach addressing the so-called entrepot trade via Hong Kong, as it would be a further blow to the city’s embattled economy and risks worsening political tensions there, one of the people said.
China’s Ministry of Commerce did not immediately respond to a fax seeking comment.
China will also grant more regular waivers on retaliatory tariffs to local buyers of U.S. farm products including soybeans and pork, the people said. In November, China lifted its ban on U.S. poultry shipments as part of trade negotiations, with the U.S. estimating exports would top $1 billion a year.
Trade Representative Robert Lighthizer has said the Chinese made detailed commitments on agriculture that would see them purchase at least an additional $16 billion annually in commodities on top of the pre-trade war level of $24 billion and endeavor to buy as much as $50 billion annually. But detailed purchase targets on each commodity won’t be made public, he said.
Importing corn-based ethanol from the U.S. would help China make up for a slowdown in domestic production and meet a goal of expanding the blending of the cleaner fuel into gasoline in the world’s largest car market.
China imported about 200 million gallons of U.S. ethanol in 2016, according to the U.S. Energy Information Administration, but that door was shut in 2018 when taxes on imports were raised to around 70% because of the trade dispute. The U.S. exported a total of $2.4 billion of ethanol in 2017, a report by the Renewable Fuels Association showed.
Read the original article: China Plans to Buy Ethanol, Count Hong Kong Trade in U.S. Pledge
December 2, 2019
By Matt Thompson
A recently released report from the U.S. Department of Agriculture’s Foreign Agricultural Service says that while Thailand has relied on domestic ethanol production, the country could benefit from importing ethanol and other biofuels.
While the country allows imports of ethanol for industrial use, the country does not import ethanol for use as a transportation fuel. Traders of ethanol in Thailand are required to receive a permit from the country’s Ministry of Energy; however, “to date, the MOE has never approved any imports of fuel ethanol due to sufficient supplies of locally produced ethanol,” the report says.
But the report says the country could benefit from allowing fuel ethanol imports. Feedstocks for domestic ethanol production in Thailand are sugar cane, molasses and cassava. Because of shortages of those feedstocks, Thailand “will be forced to temporarily lower biofuel use targets or price surges when weather-related feedstock shortages occur,” and the country’s lack of ethanol imports will prevent it from meeting higher ethanol-use targets. It is also likely to see higher greenhouse gas emissions from land use change, the report said. “Permitting some role for imports unlocks the full positive potential contribution biofuels can make.”
And the country is set to lower it’s consumption goals for 2037. The report says a new 20-year Alternative Energy Development Plan was approved in April, and “the government is in the process of reviewing ethanol and biodiesel consumption targets.” Those targets are expected to be lower than the targets set out in the 2015 plan, due the concerns over feedstock supply. The new targets are expected to lower the consumption target in 2037 to 2.4 billion liters. That’s 41 percent below the target set out in 2015.
According to the report, the country’s ethanol and production rates are expected to increase in 2019, but not as quickly as they once had. In 2017, the country saw its highest ethanol consumption growth rate in 2017 at 12 percent. In 2019, ethanol consumption is expected to increase by 6 percent over 2018 levels. The reduced rate of ethanol production and use in the country, the report says, is “due to the delay in the cessation of Octane 91 E10 sales.” That cessation was scheduled for Jan. 1, 2018.
Despite the delay, the report says ethanol-blend levels in the country have reached 13.5 percent in this year as a result of strong E20 sales.
Read the original article: Report: Thailand Could Benefit From Ethanol Imports
By James Cogan
December 10, 2019
Transport accounts for a quarter of climate-harming greenhouse gas emissions and, at a glance, a quarter of COP25 talks are about cutting transport emissions. They’re the hardest kind to cut, writes James Cogan.
James Cogan is a policy advisor to Ethanol Europe.
The issue is the sheer size of the world’s still-growing fleet of internal combustion engine (ICE) vehicles, and how electromobility and modal shift – no matter how optimistic the forecasts for transition – will take a couple of decades yet to develop into even a modest “significant” portion of transport supply.
The world is so heavily invested in oil, roads and rubber that there seems to be no scenario under which a big enough and early enough shift will happen. It’s the ultimate example of the slow-to-turn supertanker.
Transport industry analysts estimate that it will likely be 2040 before “peak ICE” is reached and 2050 before ICE-mobility dips back down to today’s levels, reaching parity with electromobility and other fossil-free modes.
COP25 isn’t celebrating this clearly. It is grappling with the big questions of how to cut carbon emissions when much of the world’s population is only now joining the urban car-owning classes, when many developed countries are still holding off on embracing low carbon transport and when the conditions of affluent early-adopter regions like California and Norway aren’t readily transferring to the rest of the world.
Nobody at COP25 disagrees with electromobility, cycling, modal shift and fossil-free fuels as the key measures for cutting emissions. It’s about the mix, the timing, who pays, and voter and political appetites.
One engineer in Madrid said that since gasoline and diesel are the culprits then the first thing political leaders should do is cut back on gasoline and diesel. With oil so cheap and abundant, she said, there’s no compelling reason for engineers to design down the amount of it they incorporate into their systems.
Vehicles are getting more efficient but they’re also getting bigger, and numbers are growing. A 30% cut in transport emissions in ten years will require – as any engineer worth her salt will tell you – an annual decrement of three percent per year.
Society’s engineers will find ways to achieve it, using a mix of solutions, looking in parallel at long term measures, things they can do now and at the relative costs and barriers. But someone has to tell them to go ahead and do it, she said.
Ethanol falls into the category of fossil-free, quick, economical, works-in-the-current-fleet and compatible with the do no harm principle of Ursula von der Leyen’s European Green Deal. Ethanol hasn’t the curb appeal of a Tesla or single-speed bike, but it doesn’t require consumer behavioural change either.
Gasoline vehicles account for a third to a half of transport energy demand in most countries. Ethanol could displace a fifth of that gasoline, and this would give the climate engineer two of the ten decrements she seeks.
The other eight decrements, plus any more on top (the EU is considering a whopping 50% GHG cuts by 2030), will be found in electromobility, cycling, other fossil-free fuels, public transport and more efficient mobility patterns. The ethanol two will be the easiest two, by a long shot.
Ethanol is already fuelling the equivalent of a hundred million cars worldwide, blended into the gasoline supply of a half a billion vehicles at rates of 3% to 100%. Thanks to the boxes it ticks, a dozen countries are introducing higher blends of it this year.
Much of Europe uses E5 or E10 (5% or 10% ethanol blending), the USA is rolling out E15, the average blend rate in Brazil is about 30% while France is developing E85 across its retail network.
Climate action doesn’t stop when everybody goes home from Madrid. COP26 in Glasgow will be the “COP of specific solutions”.
Between now and next December, climate policy engineers everywhere will be doing the math to see just how they’ll get 30% of the GHGs out of their transport systems in just ten years. COP26 will be the engineer’s COP.
Read the original article: COP25 – Ethanol Brings Welcome Contribution to Transport Climate Action
December 2, 2019
Press Release
Last week, Rep. Jim Hagedorn (MN-01) filed comments with U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler to express frustration with and demand changes to the agency’s practice of granting Renewable Fuel Standard (RFS) waivers to large or unqualified refineries.
“I am here today to make my position clear that I expect the EPA to uphold the President’s promise made on October 4, 2019, to rural America and to implement the Congress’s intent on the Renewable Fuel Standard. I write to you today in frustration. In the last three years, waivers granted to refineries by your agency have eliminated four billion gallons of ethanol. That's a quarter of the ethanol produced last year in the U.S. -- the equivalent of 50 ethanol plants. With two biodiesel and 11 ethanol plants across southern Minnesota, these exemptions have negative consequences for the First District of Minnesota,” wrote Hagedorn.
Hagedorn also laid out a list of demands for ending EPA’s loose interpretation of the Small Refinery Exemptions (SRE) Rule, which can be found below:
-Enforce the original biofuel targets that were agreed upon by President Trump, Agriculture Secretary Sonny Perdue, former Energy Secretary Rick Perry and yourself;
-Limit the ability of large and unqualified companies to use SRE’s;
-Restore all the lost gallons that were destroyed by retroactive SRE waivers granted for years 2016, 2017 and 2018; and,
-Boost the proposed volume requirements by the amount of retroactive exemptions EPA reasonably anticipates granting for 2019 and 2020.
The full text of the comments can be found here.
Read the original press release: Hagedorn Writes EPA about Renewable Fuel Standard, Small Refinery Exemptions