In the News

Subscribe to this RSS feed

In the News

US Asks Brazil to Consider Lifting Tariffs on Ethanol Exports

February 6, 2019

The United States has asked Brazil to consider lifting tariffs imposed on its ethanol exports and is hopeful of a positive outcome, a senior official at the U.S. Department of Agriculture said on Wednesday.

Brazil currently charges a 20 percent tariff on ethanol imports surpassing 150 million liters a quarter, in a bid to shield local farmers from foreign competition.

"Our hope is that the warm relations that exist between our presidents and how that cascades down might let us find some relief," Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney said on a conference call from Brasilia.

McKinney and U.S. chief agricultural negotiator Gregg Doud have been in Brazil to hold talks with Brazilian government officials. McKinney said he was optimistic for change, although so far Brazil has not indicated that they would lift the tariffs.

McKinney said Brazil had previously said it would reassess the tariffs two years from the September 2017 date on which they were imposed. "You can imagine there's always run-ups to that.

Nobody said it is a hard date and that's another reason we are having a discussion," he said.

The U.S. delegation was set to meet with the Brazilian ministry of agriculture, he said.

Brazil's new President Jair Bolsonaro, a 63-year-old former army captain and admirer of U.S. President Donald Trump, has quickly deepened ties with the United States and Israel.

Bolsonaro said last year that he would like to see Brazil retake global leadership in ethanol production, which it lost to the United States some years ago.

Read the original article: US Asks Brazil to Consider Lifting Tariffs on Ethanol Exports

NACS Favors Giving Consumers Options At the Pump

Ethanol Producer Magazine

February 6, 2019

By Matt Thompson

For the National Association of Convenience Stores, selling E15 is a matter of giving consumers plenty of fuel options. “We like the optionality of being able to have lots legal choices and really sell what the consumer wants to buy,” said Paige Anderson, NACS’s director of government relations. “And in our minds, that’s the best way to go, so we like the fact that there’s lots of choice out there for us and we think ultimately that’s the best thing for the consumer.”

But, she says, the biggest barrier preventing retailers from adding E15 to their product mix is not being able to offer the fuel year-round. “What we hear over and over from our folks is … ’When are we not going to have to change our labels after nine months?’ This is the number one issue we hear about for those either trying to sell E15 or who are looking and exploring to sell E15,” she said.

So it’s no surprise that NACS is keeping an eye on EPA’s rule making process to extend the Reid vapor pressure (RVP) waiver to blends higher than E10, and allowing their sale year-round. President Donald Trump directed the EPA last year to allow for year-round sales prior to 2019’s driving season.

“For those that are on the sidelines that have been looking and are interested in getting the E15, they’ve been waiting until this gets approved and they have the ability to sell year-round,” Anderson said. “So … making sure that we get that RVP one-pound wavier for E15, certainly has been a key issue for our folks looking to expand and start selling E15 to consumers.” She added that it’s also a major issue for retailers who are already selling the blend, as changing labels is a hassle.

Two issues NACS is watching closely are potential renewable identification number (RIN) reforms and the small refinery exemption process. Anderson both issues have potential to effect retailers.

“The folks that sort of negotiated this deal to get this to happen, they want to do a lot of changes to the RINs program, … which potentially could be very harmful and have the opposite effect of trying to encourage more biofuel into the marketplace. And so, ok, we’ve done a good thing by allowing year-round sales of E15, but now we have to look at all of these reforms to the RIN program that aren’t needed or makes it more difficult.”

Anderson said NACS’s focus on small refinery exemptions has been around gaining more transparency into how decisions are made and who receives the waivers. “We strongly believe we need to know what the criteria is in granting a waiver so that we all know what the rules of the road are in the process and how you grant it,” she said. “And then we believe when a decision’s made one way or another, that that information is given to everybody at the same time so that a particular entity doesn’t have an unfair advantage.”

And how EPA deals with extending the waiver and RIN reform will play a role in whether or not the rulemaking is completed in time for the summer driving season. “It’ll be interesting to see how they deal with the one-pound waiver rulemaking and how they deal with potential RINs reform,” she said. “Do they do it together? Do they do it separate? And I think that’s going to also effect how long they take and how this moves.” She added that, barring another government shutdown, NACS feels it is possible for the RVP waiver for E15 to be in place prior to the summer driving season.

Despite the prohibition on selling E15 during the summer months, Anderson said retailers who are currently offering E15 are happy with the product. “Our folks that have jumped in with both feet and are giving it a try have been positive and they really want to be able to sell it year-round,” she said.

Read the original article: NACS Favors Giving Consumers Options At the Pump

New Study: RFS2 Has Reduced GHG Emissions by 600 Million Metric Tons, Beating EPA Expectations

Renewable Fuels Association

February 6, 2019

Press Release

A new study released today finds that the expanded Renewable Fuel Standard (RFS2) has been a tremendous success in reducing greenhouse gas (GHG) emissions, with nearly 600 million metric tons of GHG reduction since 2007. Actual GHG reductions under the RFS2 have far surpassed the Environmental Protection Agency’s (EPA) original expectations of 422 million metric tons, according to the study. The analysis was conducted by Life Cycle Associates, a California-based scientific consulting firm, and commissioned by the Renewable Fuels Foundation (RFF).

The findings, which come as two House committees hold climate change hearings this morning, highlight the important role that ethanol and other biofuels can play in efforts to fight climate change and reduce GHG emissions.

“The RFS2 has resulted in significant GHG reductions, with cumulative CO2 savings of 600 million metric tonnes over the period of implementation,” according to the study. “The GHG reductions are due to the greater than expected savings from ethanol and other biofuels. These emissions savings occur even though cellulosic biofuels have not met the RFS2 production targets. Biofuels have achieved and exceeded the GHG reductions estimated by EPA.”

As outlined in the report, the larger-than-expected GHG reductions are due to:

-The adoption of technology improvements in the production of corn-based ethanol, resulting in far greater GHG reductions than originally estimated by EPA;

-The GHG emissions of petroleum are higher than the baseline estimates originally projected by EPA; and

-Advanced biofuels like biodiesel, renewable diesel, and renewable natural gas have contributed additional GHG reductions, even though actual cellulosic biofuel production has been lower than initially projected.

Using the latest available data and modeling tools, the study found that the conventional ethanol consumed in 2018 reduced GHG emissions by 43 percent compared to petroleum, even when hypothetical “land use change” are included. That compares to EPA’s initial projections that conventional ethanol would achieve only a 20 percent GHG reduction versus petroleum.

“As this study demonstrates, renewable fuels like ethanol are an incredibly effective tool for reducing GHG emissions,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “And with renewable fuels, we don’t need to cross our fingers and wait for the development and commercialization of a new technology. Ethanol is available here and now to help our nation decarbonize our transportation fuels in a cost effective manner. As the new Congress turns its focus to climate change and efforts to reduce GHG emissions, we encourage lawmakers to recognize and build upon the incredible success of the RFS.”

The 600 million metric tons of GHG reduction achieved under the RFS is equivalent to the GHG savings that would result from removing roughly half of the nation’s automobiles from the road for a full year or shutting down 154 coal-fired power plants for a year, according to EPA.

A copy of the report is here.

Life Cycle Associates Managing Director Stefan Unnasch will be presenting this report on Tuesday, Feb. 12 at RFA’s National Ethanol Conference in Orlando.

Life Cycle Associates analyzes the energy and environmental impacts of fuels and energy systems. The firm’s work focuses on the assessment of fuel production pathways on a well to wheel basis, economic analysis of energy systems, process engineering analysis of fuel production systems, and the development of GHG reduction strategies. Life Cycle Associates has conducted studies and research for the Natural Resources Defense Council (NRDC), U.S. Department of Energy, U.S. EPA, California Energy Commission, California Air Resources Board, the European Commission, Coordinating Research Council (CRC), Northeast States for Coordinated Air Use Management (NESCAUM), Federal Aviation Administration, New Fuels Alliance, Alberta Department of Energy, and many others.

Read the original article: New Study: RFS2 Has Reduced GHG Emissions by 600 Million Metric Tons, Beating EPA Expectations

RFA Asks EPA to Use RFS ‘Reset’ Rule to Reallocate Waived RVOs

Ethanol Producer Magazine

January 31, 2019

By Erin Voegele

The Renewable Fuels Association is calling on the U.S. EPA to use its upcoming Renewable Fuel Standard “reset” rule to reallocate renewable volume obligations (RVOs) impacted by recent small refinery exemptions, a 2016 lawsuit, and a recent bankruptcy settlement.

A notice released by the Trump Administration in October 2018 indicates the EPA is scheduled to release an RFS reset rule in early 2019 and finalize that rulemaking by the end of the year. The notice states that “under the statutory provisions of governing the [RFS] program, EPA is required to modify, or reset, the applicable volume targets specified in the statute for future years if waivers of those volumes in past years met certain specified thresholds. Those thresholds have been met or are expected to be met in the near future. As a result, EPA is proposing a rulemaking that will propose modifying the applicable volume targets for cellulosic biofuel, advanced biofuel, and total renewable fuel for the years 2020-2022.”

On Jan. 29, Geoff Cooper, president and CEO of the RFA, sent a letter to Acting EPA Administrator Andrew Wheeler in which he said the RFA expects the EPA will use the rest rule as an opportunity to adjust future implied blending obligations for conventional fuels upward to account for the 500 million gallons of renewable fuel improperly waived from the 2016 standards, as required by the D.C. Circuit Court of Appeals’ remand in Americans for Clean Energy v. EPA; the approximately 232 million renewable identification number (RIN) “write-off” as part of the Philadelphia Energy Solutions Refining and Marking LLC bankruptcy settlement; and the 2.25 billion RINs attributable to 48 small refinery exemptions granted for compliance years 2016 and 2017.

“As a result of these waivers or exemptions from required volumes, many ethanol plants have recently idled, shut down, or announced layoffs,” Cooper wrote. “These compliance exemptions have also hurt demand and price for American farmers. At a time when trade disputes are dampening export market opportunities, the EPA-induced disruption in domestic ethanol and corn demand is devastating.”

In his letter, Cooper notes that due to the exemptions he listed, the RFS—as implemented—has not achieved the applicable volume requirements set by the EPA in its annual rules. He also stressed that EPA has statutory mandate to ensure those volume requirements are met, noting that mandate can only be accomplished if EPA adjusts volumes upward to account for volume obligations previously exempted by EPA and not accounted for in the subsequent year’s volume requirement.

A full copy of the letter can be downloaded from the RFA’s website.

Read the original article: RFA Asks EPA to Use RFS ‘Reset’ Rule to Reallocate Waived RVOs

U.S. Ethanol Exports Could Hit Record 4 Billion Gallons by 2022, Says Expert

Successful Farming

January 30, 2019

By Jerry Perkins

Exports of U.S. ethanol could hit a record 4 billion gallons a year in 2022, according to Mike Dwyer, chief economist for the U.S. Grains Council.

Dwyer made the prediction Tuesday during a roundtable discussion on trade at the Iowa Renewable Fuels Summit, which was held at the Prairie Meadows Conference Center in Altoona, Iowa. The annual event is sponsored by the Iowa Renewable Fuels Association.

If the U.S. ethanol industry exports a total 4 billion gallons in 2022, it would more than the double the current record of 1.62 billion gallons of ethanol exports set during the 2017-2018 marketing year that ended August 31, 2018.

During that 12-month period, U.S. ethanol was exported to 74 countries, according to the U.S. Department of Agriculture’s Foreign Agricultural Service.

U.S. ethanol exports during the current marketing year that ends August 31 are on track to hit 2 billion gallons, Dwyer noted.

The U.S. Grains Council is a Washington, D.C.-based organization that promotes the exports of U.S. corn, sorghum, and barley and value-added products made from those commodities.

Dwyer said that the Grain Council’s global strategy includes selling ethanol to the Chinese market despite trade disputes between the U.S. and China that have roiled the markets there for U.S. crops and other products.

China currently imposes a 70% duty on U.S. ethanol, Dwyer stated, but it will have to find a way to import foreign ethanol if it aims to fulfill the mandate it has imposed to use a blend of 10% ethanol and 90% gasoline (E10) by 2020.

It is possible that China could import approximately 1 billion gallons of U.S. ethanol to meet its E10 mandate, Dwyer told Successful Farming in an interview after his presentation at the Iowa Renewable Fuel Summit. That would make China the first country to import 1 billion gallons of U.S. ethanol a year, he added.

If trade issues between the U.S. and China are resolved, Dwyer stated, ethanol imports by China could hit 300 million gallons this year.

Kelly Nieuwenhuis, a farmer from Primghar, Iowa, who traveled to China last year on a U.S. Grains Council trade mission, said that he was told by Chinese gasoline retailers that they want to do business with the U.S. ethanol industry. The Chinese also expressed a desire to use more ethanol because they know it will improve their air quality, Nieuwenhuis remarked.

Dwyer said that the Grains Council believes that by 2022, 75% of U.S. ethanol exports will go to six countries: China, India, Japan, Brazil, Canada, and Mexico.

Ron Lamberty, senior vice president and market development director for the American Coalition for Ethanol in Sioux Falls, South Dakota, said during his presentation at the trade roundtable that he has made seven trips to Mexico to advise the transportation fuels industry there on how it can integrate the use of E10 into Mexico’s fuel supply.

Mexico has made the use of E10 legal in the country, Lamberty said, except for the cities of Mexico City, Guadalajara, and Monterrey. Small quantities of ethanol are currently being sold in Mexican cities on the U.S.-Mexico border, Lamberty told Successful Farming in an interview after his presentation.

Lamberty has participated in technical workshops on ethanol that have been held for Mexico’s petroleum equipment installers and retailers. The workshops were a joint effort of the U.S. Grains Council and the Mexican Association of Petroleum Equipment Suppliers (AMPES) and were intended to inform Mexican fuel marketers about sourcing, blending, distributing, and retailing ethanol-blended gasoline.

Mexico’s potential annual E10 market totals 1.2 billion gallons, Lamberty stated, which represents 200 million gallons more U.S. ethanol than is currently imported by Canada. Canada was the second-largest importer of U.S. ethanol in the marketing year ended August 31, 2018. Brazil was the largest importer of U.S. ethanol during the most recently-completed marketing year.

In opening remarks at the Summit, Iowa Renewable Fuels Association Executive Director Monte Shaw said that 2018 was his toughest year yet working for the industry.

Making the year 2018 particularly difficult were the fight for the year-round sales of E15, China trade disputes, and the plethora of small-refinery exemptions to the Renewable Fuel Standard (RFS) granted by the Environmental Protection Agency (EPA). The exemptions have been estimated to have cut the demand for ethanol domestically by 2.25 billion gallons a year.

Shaw emphasized that despite the policy challenges, the biofuels industry fought hard and won a victory when President Donald Trump announced on October 9, 2018, in Council Bluffs, Iowa, that he had ordered the EPA to begin a rulemaking process that will allow the year-round sale of E15.

As 2019 ramps up, Shaw said the state of the biofuels industry is “hurting but hopeful… Due to small-refinery exemptions and the China trade dispute, ethanol producers are facing a period of prolonged breakeven or negative margins the likes of which we haven’t seen in many years. And biodiesel producers are forced to sell their product based on Congress retroactively restoring the blenders’ tax credit.”

Despite the drawbacks, he said, Iowa biofuels producers are hopeful. “We have ample feedstocks, efficient production capacity, and the ability to once again power the rural economy to prosperity,” Shaw stated

He also noted that, during 2019, the industry will likely see the outcome of many pending lawsuits over small-refinery exemptions, the highly-anticipated E15 rule allowing its sale year-round, the announcement of 2020 blend levels, a possible RFS reset rule, and other beneficial developments.

“Quite frankly, when you look at the plethora of issues on our plate that should come to a head this year, I will not be surprised if 2019 goes down in biofuels history as the most impactful year – for better or worse – since 2005,” Shaw concluded. “We may not like every answer we get. But I’m confident that 2019 can be a great year for biofuels and biofuels policy.”

Read the original article: U.S. Ethanol Exports Could Hit Record 4 Billion Gallons by 2022, Says Expert

Gevo Supplies ATJ to California Airport, Joins SAF Coalition

Ethanol Producer Magazine

January 25, 2019

By Erin Voegele

Gevo Inc. made two announcements in mid-January regarding its efforts to expand the use of sustainable aviation fuel (SAF). The company supplied its fuel to an airport in California and signed on to an existing coalition that aims to expand the use of SAF.

On Jan. 17, Gevo announced it was supplying its alcohol-to-jet (ATJ) to Avfuel Corp. for use at the “Business Jets Fuel Green: A step Toward Sustainability” event, which was held that day at the Van Nuys Airport in Southern California. According to Gevo, the event aimed to demonstrate that renewable jet fuel, including Gevo’s ATJ, can become a mainstream, drop-in alterative for today’s general aviation aircraft. During the event, Avfuel offered a blend of traditional jet fuel and Gevo’s ATJ.

“There are more than 210,000 aircraft in the general and business aviation sector in the U.S. alone. With more than 650 Avfuel-branded locations and 3,000-plus fueling locations, our partnership with Avfuel has allowed us to begin to effectively support this market and the market goals to achieve carbon neutrality from 2020 and beyond,” said Patrick R. Gruber, CEO of Gevo. “This event demonstrates our partnership and mutual commitment with Avfuel to feed the world, sequester carbon dioxide and reduce greenhouse gas emissions.”

Less than one week later, on Jan. 22, Gevo announced it has joined with the San Francisco International Airport (SFO), certain airlines and other industry participants for the use of sustainable aviation fuels (SAF). The company said it has signed onto a memorandum of understanding (MOU) with United Airlines, Alaska Airlines, American Airlines, Cathay Pacific, Chevron Corp., Shell Oil Co., Neste and Lanzatech Inc. and others to work cooperatively on expanding the use of SAF at SFO. The consortium was originally formed in September 2018.

“With this Memorandum of Understanding, we’re moving the dial on an entire industry,” said Ivar C. Satero, director director at SFO. “A quantum leap of this kind requires partnering with like-minded organizations, and we’re pleased that Gevo has joined the airlines and fuel suppliers who are committed to expanding the use of Sustainable Aviation Fuel in air transportation.”

Read the original article: Gevo Supplies ATJ to California Airport, Joins SAF Coalition

Novozymes Reports Significant Growth in Bioenergy Sales for 2018

Ethanol Producer Magazine

January 24, 2019

By Erin Voegele

Novozymes has released fourth quarter and full year 2018 financial results, reporting strong sales growth for its bioenergy segment. Overall the company’s sales grew by 4 percent organically when compared to 2017.

Sales for the bioenergy segment grew by 12 percent organically for the full year when compared to 2017. For the fourth quarter alone, sales for the segment were up 5 percent when compared to the same period of the previous year.

“2018 was a very good year for our Bioenergy business supporting decarbonization of transport,” said Tina Sejersgård Fanø, executive vice president of agriculture and bioenergy at Novozymes, during an investor call. “For the full year we delivered 12 percent organic sales growth, which came on top of a strong 11 percent growth in 2017. The fourth quarter was, as expected, a bit softer with 5 percent organic growth driven by lower ethanol volumes and a tough comparison from Q4 2017.”

Novozymes said strong growth within enzymes for conventional biofuels continued throughout 2018, driven by broad technology offerings and tailored customer solutions. “Growth was driven by a strong momentum due to our broad technology base, the launch of our yeast products—Innova Drive and Lift—for conventional biofuels, and good performance in Latin America with producers expanding into corn-based ethanol production,” Sejersgård Fanø said.

The company estimates U.S. and global ethanol production was up approximately 1 percent in 2018 when compared to the previous year. During the fourth quarter, however, production was down an estimated 3 percent. Novozymes noted ethanol producer margins were under pressure, and inventory levels were elevated.

Moving into 2019, Novozymes said organic sales growth for its bioenergy sector is expected to be driven mainly by increased penetration from innovation as well as volume growth outside the U.S. market. The company currently expects U.S. ethanol production this year to be down slightly when compared to 2018, with ethanol inventory levels expected to remain high this year. Novozymes currently expects high-single-digit growth in bioenergy for the full year.

Sejersgård Fanø also discussed the potential of increased biofuel use, including the potential of E15 in the U.S. “We´re happy to see continued discussions supporting expanded use of biofuels,” she said. “In the U.S. we are awaiting clarity on E15, which is expected sometime before summer. In Brazil, the RenovaBio framework should support the continued expansion of corn-based ethanol production. China is investing in new capacity, and the REDII directive has been adopted in the EU, with Member States now working on the implementation process.”

In addition to bioenergy, Novozymes also operates segments dedicated to household care, food and beverages, agriculture and feed, and technical and pharma. Overall, the company reported 4 percent organic sales growth for 2018, with 2 percent organic sales growth for the fourth quarter. For the current year, Novozymes expects to achieve organic sales growth of 3-6 percent.

Read the original article: Novozymes Reports Significant Growth in Bioenergy Sales for 2018

Etihad Flies First Flight Using Part Biofuel

January 16, 2019

By Binsal Abdul Kader

Abu Dhabi: Etihad Airways has flown the first commercial flight partially fuelled by locally produced biofuel derived from plants grown in saltwater, which reduces carbon emissions, officials announced here on Wednesday.

The successful flight of the Etihad Airways Boeing 787 powered by GE’s GEnx-1B engines from Abu Dhabi to Amsterdam on Tuesday marked a major milestone, signalling the potential of large scale commercial production of biofuel in the UAE, which will cater to growing global demand for alternative aviation fuel, they said at a press conference on the sidelines of the Abu Dhabi Sustainability Week (ADSW).

The officials of the Sustainable Bioenergy Research Consortium (SBRC), a non-profit entity established by Masdar Institute that is part of Khalifa University of Science and Technology, said the initiative would also address food security in the UAE as seafood is also produced through aquaculture as part of the process.

The initiative named the Seawater Energy and Agriculture System (SEAS) supports the aviation sector, the oil and gas industry, food production and the creation of a new agricultural alternative in the UAE.

“Deep decarbonisation of energy-intensive industries has a ripple effect on food security and climate action. Clean, alternative aviation fuels are an innovative and sustainable solution to significantly reducing harmful carbon emissions. The UAE is proud to be a pioneer in this domain,” said Dr Thani Bin Ahmad Al Zeyoudi, Minister of Climate Change and Environment.

The biofuel fuel for the flight was derived from oil in Salicornia plants grown on the two-hectare farm in Masdar City as part of the SEAS, the world’s first desert ecosystem designed to produce fuel and food in saltwater. Fish and shrimp raised at the facility provide nutrients for the plants as well as contribute to the UAE’s food production. The system is expected to scale up to 200 hectares in the move towards full-scale commercial implementation in the next few years.

Mariam Bint Mohammad Saeed Hareb Al Muhairi, Minister of State for Food Security, said it is an important specialised initiative under the aquaculture umbrella, with the UAE recognising that this sector utilises the region’s most precious resource. “We have [enough] three S: sun, sea and sand.”

She pointed out that the UAE has established its aquaculture sector with an investment of more than Dh100 million to develop hatcheries and fish farms.

Tony Douglas, Group Chief Executive Officer Etihad Aviation Group, said the project has successfully proved a concept that is local, viable, cost-effective and sustainable.

The biofuel is blended directly with jet fuel and does not require any modifications to aircraft, engines or airport fuelling delivery systems.

The initiative utilises the oil and gas industry’s existing refining infrastructure. This has the potential to become an important new option for sustainable aviation fuel in the future.

Biofuel is derived from salt-tolerant halophyte plants that are grown at the pilot facility in Abu Dhabi, which became operational in 2016. These plants thrive in desert conditions and do not require fresh water or arable land.

After wastewater from the fish fertilises the plants, it is diverted into a cultivated mangrove forest. This further removes nutrients and provides valuable carbon storage before the naturally filtered and treated effluent is discharged back into the sea.

Abu Dhabi National Oil Company (Adnoc)-Refining has provided the expertise and infrastructure for refining of the seed oil to meet stringent jet fuel standards. Adnoc distribution helped blending and delivery of the biofuel to the aircraft.

Abu Dhabi Vegetable Oil Company (ADVOC) offered essential assistance in the pre-treatment phases.

Approximately 160,000 passenger flights have flown on a blend of sustainable and traditional jet fuel since the first biofuels were certified for commercial use in 2011. Sustainable aviation fuel represents a significant opportunity to help aviation meet its goals to cap the growth of carbon emissions by 2020 and cut levels to half of what they were in 2005 by 2050.

Read the original article: Etihad Flies First Flight Using Part Biofuel

More...

The Netherlands Will Transfer All Military Aviation to Biofuel

January 23, 2019

By Svilen Petrov

The Ministry of Defense of the Netherlands has announced plans to gradually transfer all the country’s military aviation on biofuel. As a first step, the military began to purchase biofuels for the air base in Leeuwarden, which will fuel all F-16 Fighting Falcon fighters.

Military aviation is the largest consumer of fuel in the world. It is believed that the transfer of fighters to biofuels will significantly reduce emissions of carbon dioxide, one of the main factors of global warming. In particular, the United States is engaged in a gradual transfer of all ships and military aircraft to biofuel.

According to the Netherlands Ministry of Defense, in the middle of January 2019, 400,000 liters of biofuel produced by the American company World Energy from kitchen fats were delivered to the air base in Leeuwarden. Currently, all the F-16 fighters assigned to the airbase fly on a fuel mixture of 5% of biofuels and 95 percent of conventional jet fuel.

The aircraft perform test flights on the basis of which the proportion of biofuels in the mixture will increase. According to the plan of the Dutch military department, by 2030, all military aircraft of the country will fly on a fuel mixture with a 20% addition of biofuels, and by 2050 – with a 70% content of alternative fuel.

Currently, the Netherlands Air Force has 92 aircraft, including 68 F-16AM / BM fighter jets, and 77 helicopters.

The decision to transfer all airbase fighters to a mixture of hydrocarbon and biofuels was taken on the basis of tests conducted in 2018. Then one of the F-16 airbase in Leeuwarden for two weeks was flying in a mixture with a 5% content of biofuels.

Read the original article: The Netherlands Will Transfer All Military Aviation to Biofuel

Ethanol Production Back Up

January 21, 2019

By Cindy Zimmerman

Weekly U.S. ethanol production recovered after the holidays to more like what we were seeing throughout 2018.

According to Energy Information Administration data analyzed by the Renewable Fuels Association, ethanol production for the week ending January 11 increased over five percent to the largest volume in six weeks at an average of 1.051 million barrels per day (b/d)—or 44.14 million gallons daily. The four-week average for ethanol production rose fractionally at 1.026 million b/d for an annualized rate of 15.73 billion gallons but was still 1.8% lower than the level a year ago.

There were zero imports recorded for the ninth week in a row. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of October 2018.)

Average weekly gasoline supplied to the market pulled back 1.9% at 8.565 million b/d (359.7 million gallons per day), equivalent to 131.30 billion gallons annualized and the lowest level since February 2017. Refiner/blender input of ethanol rebounded 5.8% (up 47,000 b/d) at 862,000 b/d—equivalent to 13.21 billion gallons annualized.

Given the lackluster volume of gasoline supplied to the market, daily ethanol production increased to a 58-week high of 12.27% of daily gasoline supplied.

Read the original article: Ethanol Production Back Up

EIA: Ethanol Production to Remain Relatively Flat in 2019, 2020

Ethanol Producer Magazine

January 15, 2019

By Erin Voegele

The U.S. Energy Information Administration has released the January edition of its Short-Term Energy Outlook, maintaining its December forecast for 2019 ethanol production levels and offering its first short-term forecast for 2020 production.

The EIA currently predicts that ethanol production will average approximately 1.04 million barrels per day in 2019 and 2020, down from 1.05 million barrels per day in 2018. The EIA cites low ethanol producer margins and limited domestic growth potential as factors expected to limit ethanol production over the next two years.

On a quarterly basis, production is expected to average 1.04 million barrels per day during the first quarter of this year, increase to 1.05 million barrels per day during the second quarter, and return to 1.04 million barrels per day during the third and fourth quarters. In 2020, production is currently expected to average 1.04 million barrels per day during the first quarter of the year, increase to 1.05 million barrels per day during the second and third quarters, and return to 1.04 million barrels per day during the final quarter of the year.

Ethanol consumption for 2019 and 2020 is expected to average approximately 950,000 barrels per day, up from 940,000 barrels per day in 2018. According to the EIA, the increase is expected to be driven by increasing motor gasoline consumption. The agency said the forecast levels of consumption will result in the ethanol share of the total gasoline pool increasing from 10.1 percent in 2018 to 10.2 percent in 2020. “This stable ethanol share assumes growth in high-level ethanol blends is limited by recently waived volumes of renewable fuel required under the [Renewable Fuel Standard] by way of numerous small refinery exemptions, depressing D6 renewable identification number (RIN) prices and limiting the demand for higher levels of ethanol blending beyond 10 percent of gasoline (i.e., E10),” said the EIA in the STEO.

Biodiesel production is expected to average 144,000 barrels per day in 2019 and 158,000 barrels per day in 2020, up from 123,000 barrels per day in 2018. The EIA said duties imposed on foreign biodiesel imports from Argentina and Indonesia in late 2017 caused net imports of biomass-based diesel to fall from 32,000 barrels per day in 2017 to 16,000 barrels per day in 2018. Net imports are expected to remain near the 2018 level in 2019 and 2020.

The EIA’s most recent weekly data shows ethanol production fell to an average of 1 million barrels per day during the week ending Jan. 4, down from 1.011 million barrels per day the previous week.

The agency’s most recent monthly data shows the U.S. imported 464,000 barrels of ethanol in October, all from Brazil. During the same month, the U.S. exported 4.178 million barrels of ethanol, primarily to Brazil, Canada and India.

Read the original article: EIA: Ethanol Production to Remain Relatively Flat in 2019, 2020

HRSG Health: Efficiency and Performance

Ethanol Producer Magazine

January 18, 2018

By Evan Almberg

The thermal oxidizer (TO) heat recovery steam generator (HRSG) is a staple system for many ethanol plants built during the mid-2000s construction boom. As plants near the 10- to 15-year operating mark, performance and efficiency might be the deciding factor between repairing or replacing equipment. Routinely inspecting and quantifying performance can improve the reliability and operation of an existing HRSG, extending the life of the system.

Inspection Priorities
Assessing the condition of the HRSG is a critical first step in determining its overall health. Having a comprehensive water- and gas-side inspection helps establish a baseline condition of the HRSG that can be compared to future inspection findings. Comparing can be qualitative and simple, “The tubes appear more oxidized than last year;” or more quantitative and complex, “The material thinning in this location is 1/16 of an inch and last year it was at 1/32 of an inch.”

A variety of locations should be observed on the water and gas side. Knowing at-risk areas can help determine where to look and when. Inspection areas for a typical TO/HRSG configuration include the HRSG inlet from the TO, the evaporator section of the HRSG, steam drum connections and internals and the packaged economizer. Important items and components to observe in these locations are: liner and baffle condition; tube-to-header connections/welds; external tube fouling, corrosion and oxidation; internal tube deposits or material loss; steam separation equipment and configuration; and overall as-built design (pipe size, configuration, material).

Common Component Issues
Temperature is a key factor in how efficiently the HRSG components operate. In HRSGs that are fired harder (e.g., a TO burner that is pushed to its maximum firing rating), metal components often exceed the recommended design limit temperature. Liners, baffles and tubes are all susceptible to overheat.

Overheated liners might oxidize, warp or break off studs when thermal expansion causes them to distort. As the liner sheets distort and expose insulation, the high temperature turbulent gas flow can wear away the insulation and cause hot spots on the HRSG.

Baffles become brittle and degrade over time as they overheat, eventually allowing the flue gas flow to bypass the tube bank, resulting in lower HRSG performance. In the case of bypass along the sidewalls of the evaporator, the increased flow along the panel end tubes will disproportionately cause tubes to overperform and generate more steam than the tubes toward the center of the panels.

The evaporator tubes are less susceptible to overheat damage, but the fin material will begin to oxidize and break off until the fin tip temperature is at the material threshold. While this is not a reliability concern, it can lower the performance of the evaporator. Tube leaks or failures often occur at the tube-to-header connection. This can be caused by high stress at the weld joint, often related to the geometry of the tube-to-header connection, but sometimes because of flow conditions on the water or gas side. Performing a gas-side inspection at the beginning of a shutdown can allow more time for tube leaks to be identified and repaired. Depending on the location within the bundle, this could be a time-consuming process. When tube failures occur, a root cause failure analysis (RCFA) should be performed to determine the failure mechanism, in addition to implementing a preventative operation or maintenance procedure to mitigate future failures. Don’t just weld the crack; involve someone who can review the location, failure and maintenance history.

Fouling is also a performance concern. As fouling buildup occurs, the tube surfaces become insulated from the gas flow, which decreases steam generation, increases backpressure and reduces thermal performance. In a TO/HRSG system behind a DDG dryer, acid dew point (sulfur dew point) corrosion might be a bigger issue than just tube-side cleaning during a shutdown. Exhaust flow with sulfur content can dramatically increase the dew point corrosion from condensation on the tubes, specifically in the cookwater economizer and preheater sections of the HRSG. This can be mitigated by process changes to the feedwater temperature or by upgrading to a corrosive-resistant tube material.

Thermal Performance
Getting the most from the HRSG can be a driving factor for plants that need process steam. HRSG thermal performance is affected by both gas- and water-side parameters, as well as the mechanical condition of the HRSG. Degradation and fouling reduce the steam generation rate, whereas upstream process changes—such as dryer optimization or harder firing of the TO burner—can cause the HRSG to exceed rated boiler capacity.

Performance can be determined through a thermal model of the HRSG by using mechanical and process data to identify areas of under and overperformance. A thermal model can be used to compare the as-is performance to the original equipment manufacturer’s predicted values, as well as to quantify the effects of degradation and changes to process operating conditions.

Quantifying Underperformance
Underperformance is often a result of gas-side fouling, flue gas bypass around heat transfer surfaces, as well as degradation and typical wear and tear of the HRSG. Gas-side fouling is a common issue, particularly in process plant conditions, that reduces the heat absorption effectiveness. Fouling can depend on both the flue gas composition and the process conditions of the HRSG.

Gas-side cleaning, such as dry ice blasting, is often performed during an annual shutdown. But it might not be the best approach. A thermal model and a performance degradation tracking procedure can help determine when cleaning is necessary or economically advantageous to gain back the heat absorption of the HRSG. If cleaning is warranted, it’s important to clean all the way down to surfaces deep into the tube bank. A thermal model can show before and after.

Predicting Upgrade Performance
An overperforming HRSG can impact the HRSG and downstream equipment such as a letdown turbine, and raise safety concerns. Overperformance can occur because of a process change on upstream equipment or an upgrade of HRSG components themselves. Examples of this include increasing the feedwater temperature to prevent preheater dew point corrosion or max firing the TO burner to increase steam generation.

Before a change is made, a thermal performance assessment of the HRSG system should be conducted to evaluate what the possible effects could be. Key checkpoint areas should include: tube metal and nonpressure part temperatures; design pressures and safety valve capacity; material selection and operating environment; changes in gas-side backpressure; steam separator capacity; and boiler feed pump capacity.

Upon evaluation of the upgrade performance, codes often allow rerating the HRSG to the higher steam generation rate, and in some cases, higher pressures or temperatures, although the latter two require extensive pressure part evaluation. Rerating can involve new nameplate documenting, the new limits to the steam flow, plus modifications to satisfy standards of the American Society of Mechanical Engineers and National Board Inspection Code.

Whether overperforming or underperforming, the HRSG affects many parts of the plant, and vice versa. Inspect and quantify HRSG performance to keep everything running smoothly.

Read the original article: HRSG Health: Efficiency and Performance

EPA's Wheeler Says Shutdown is Delaying New Ethanol Gasoline Rule

January 16, 2019

By Humeyra Pamuk and Valerie Volcovici

A U.S. Environmental Protection Agency rule to allow sales of higher-ethanol blends of gasoline year-round is being delayed by a partial government shutdown, acting Administrator Andrew Wheeler said on Wednesday.

The rule, a key campaign promise by President Donald Trump to farmers, an important constituency, was announced in October and would aim to expand the market for corn-based ethanol.

Speaking at his Senate confirmation hearing, Wheeler, Trump’s nominee to head the agency on a permanent basis, said the EPA was unable to work on the rule at the moment because of the shutdown.

“Originally we were planning on issuing the rule in February ... We haven’t been shut down as long as the other departments but we may be slightly delayed at this point,” Wheeler said.

A partial government shutdown began on Dec. 22 due to Trump’s insistence on more than $5 billion to pay for a wall along the U.S. border with Mexico. Currently there is little sign of a breakthrough.

Wheeler said the rule would still be ready for the 2019 driving season which begins in June. Following the official release of the proposed rule, the EPA will be required to get public comment.

Known as E15, the rule could be politically helpful to Republican candidates in the Midwest, which is saddled with a tough farm economy and suffering from the U.S.-China tariff-laden trade war.

Last October, Trump deliver a long-sought political victory to the Farm Belt but angered oil refiners. He announced the lifting of a ban on summer sales of gasoline blended with 15 percent ethanol.

Read the original article: EPA's Wheeler Says Shutdown is Delaying New Ethanol Gasoline Rule

USGC: Potential For Growing Ethanol Markets In Nigeria, Ghana

Ethanol Producer Magazine

Jan 8, 2019

By U.S. Grains Council

The U.S. Grains Council recently conducted a market assessment mission to Nigeria and Ghana gauging the potential for U.S. ethanol exports to these countries.

“The mission identified a need for higher ethanol volumes and engaged government and industry directly on enforceable biofuels policy as well as demonstrated the United States’ role as a cost-competitive supplier in the global market,” said Brian Healy, USGC manager of ethanol export market development, who was on the mission with Lucas Szabo, USGC manager of ethanol export programs, and Jad Wakileh, USGC ethanol consultant.

While both countries produce their own industrial-use ethanol—mainly from cassava—the levels of domestic production are insufficient. They are also reliant on imported gasoline, primarily from the European Union. In the last marketing year, there has been an uptick in U.S. fuel ethanol exports to the EU, some of which is re-exported to West African markets like Nigeria and Ghana in the form of finished gasoline. The Council is working with contacts to determine the exact volumes and consistency of this trade to provide an indication of the ethanol potential that exists in West Africa.

The EU, like the Persian Gulf for East African markets, has emerged as an important transshipment point for U.S. ethanol to West African markets. Total EU purchases of U.S. ethanol in the last marketing year stand at 110 million gallons (329 metric tons in corn equivalent), up 266 percent over the previous marketing year.

In the last marketing year, Nigeria was the thirteenth largest market for U.S. ethanol exports, totaling 22.5 million gallons (67.3 metric tons in corn equivalent). Nigeria has had an ethanol policy on the books for a decade, but it is not currently in effect due shortages in domestic production and sensitivities around certain feedstocks as staple crops.

The policy in Nigeria does allow for up to 10 percent ethanol blending within its fuel specification which it is partially filling at times with preblended product from the EU. However, currently there is no ethanol fuel blending occurring in country with the ethanol that is importing directly from the U.S. The U.S. imports are used in industrial sectors such as pharmaceuticals, clean cookstoves and similar uses.

While Ghana didn’t import ethanol in the 2017/2018 marketing year, it has been a small, but consistent buyer of U.S. fuel ethanol during the three prior marketing years, purchasing an average 16,000 gallons each year between 2014 and 2017.

“In the early 2000s, Ghana phased out lead in its fuel supply in response to measured, negative human health impacts,” said Healy, “and today, the country is once again looking for ways to improve not only human health, but also for ways to meet its Paris Agreement commitments and reduce overall GHG emissions.”

The Council’s global ethanol market development efforts are not only focused on environmental, human health and economic benefits of biofuels, but also on helping countries implement successful biofuels policies with a role for trade. Doing so in West Africa will not only help address their biofuels needs, but also help in unlocking potential for U.S. producers.

Read the original story here: USGC: Potential For Growing Ethanol Markets In Nigeria, Ghana

EPA Says It Is Committed To Rule For Higher Ethanol Blend By Summer Driving Season

Jan 8, 2019

By Jarrett Renshaw and Chris Prentice

NEW YORK/WASHINGTON, Jan 8 (Reuters) - The U.S. Environmental Protection Agency said on Tuesday it would complete a rule to boost sales of higher-ethanol blends of gasoline by the summer driving season, despite a partial government shutdown.

The statement from the environmental regulator came after the agency warned at least two lawmakers that the shutdown had delayed its timeline for initially rolling out the rule, according to two sources briefed on the matter.

President Donald Trump pledged in the run-up to November’s congressional elections to lift the summer ban on sales of so-called E15 gasoline, in a boost to an ethanol industry upended by trade wars and weak demand growth at home.

The Trump administration hoped to have the rule published by February and approved by June, but the EPA recently told lawmakers that the timeline would be delayed because of the partial government shutdown, said the two sources, who spoke to Reuters on condition of anonymity.

An EPA spokesman said the agency would still complete the rule before the summer driving season.

“This is a priority for both President Trump and Acting Administrator Wheeler. The ongoing partial shutdown will not impede EPA’s ability to keep to our deadline,” Michael Abboud said in an emailed statement in response to a request for comment. The acting EPA administrator is Andrew Wheeler.

The EPA currently bans the higher ethanol blend, called E15, during summer because of concerns it contributes to smog on hot days - a worry biofuels advocates say is unfounded. E15 gasoline contains 15 percent ethanol, versus the 10 percent found in most U.S. gasoline.

Trump’s decision to lift the ban of summer sales of E15 was applauded by corn-belt farmers and lawmakers and criticized by the oil lobby as an illegal overreach by the EPA and its acting administrator.

The proposal is expected to be coupled with a slew of reforms to the credit-trading market that underpins the nation’s renewable fuel policy.

Brooke Coleman, executive director of the Advanced Biofuels Business Council, said the EPA had been drafting the E15 proposal for a long time and should have no issues meeting its June 1 target. He said the EPA should delay the trading reforms if they are slowing the process down.

“That would keep the president’s promise to rural communities while taking some pressure off regulators,” Coleman said.

Read the original story here: EPA Says It Is Committed To Rule For Higher Ethanol Blend By Summer Driving Season

Corn Use For Fuel Ethanol at 462 million Bushels in October

Ethanol Producer Magazine

December 31, 2018

By Erin Voegele

The USDA recently released the December edition of its Grain Crushing and Co-Products Production report, noting corn use for fuel ethanol was at 462 million bushels in October, up 4 percent from September, but down 2 percent from October 2017.

Total corn consumed for alcohol and other uses was at 513 million bushels in October, up 3 percent from September, but down 2 percent from October 2017. October usage included 92 percent for alcohol and 8 percent for other purposes.

Corn consumed for beverage alcohol reached 3.29 million bushels, up 17 percent from September and up 11 percent from October 2017.

Of the 462 million bushels that went to fuel ethanol production, 90.6 percent went to dry milling fuel production and 9.4 percent went to wet milling fuel production.

Sorghum consumed for fuel alcohol production reached 4.588 million hundredweight (cwt) (256,928 tons), up from 4.29 million cwt in September and 2.419 million cwt in October 2017.

At dry mills, condensed distillers solubles production fell to 124,404 tons, down from 131,317 tons in September and 136,200 tons the previous October. Corn oil production was at 128,678 tons, up from 155,284 tons in September 2018, but down from 169,314 tons in October 2017. Distillers dried grains production was at 378,003 tons, up from 376,510 tons in September, but down from 449,199 tons in October 2017. Distillers dried grains with solubles production reached 1.98 million tons, up from 1.93 million tons in September and 1.96 million tons in October 2017. Distillers wet grains production reached 1.35 million tons, up from 1.3 million tons in September and 1.34 million tons in October 2017. Modified distillers wet grains production reached 456,259 tons, up from 408,473 tons in September and 443,221 tons in October 2017.

At wet mills, corn germ meal production was at 61,021 tons, up from 59,667 tons in September, but down from 90,646 tons in October 2017. Corn gluten feed production fell to 282,713 tons, down from 293,548 tons in September and 353,394 tons in October 2017. Corn gluten meal production was at 90,899 tons, up from 83,183 tons in September, but down from 302,618 tons in October of the previous year. Wet corn gluten feed production was at 245,681 tons, up from 229,183 tons in September, but down from 302,618 tons in October 2017.

At dry and wet mill plants, carbon dioxide captured was at 252,895 tons, down from 260,179 tons in September, but up from 225,146 tons in October 2017.

Read the original article: Corn Use For Fuel Ethanol at 462 million Bushels in October

Page 43 of 93