In the News

Renewable Fuels Association

Dec 13, 2016

WASHINGTON — Recent data from the U.S. Department of Energy (DOE) shows that gasoline consumed in 25 states and the District of Columbia contained more than 10.0 percent ethanol on average in 2015, demonstrating that the so-called “E10 Blend Wall” continues to crumble. The national average ethanol blend rate was 9.91 percent according to the DOE data. According to the Renewable Fuels Association (RFA), the data completely undermine legislation proposed by Reps. Bill Flores (R-Texas) and Peter Welch (D-Vt.) that suggests the gasoline market cannot withstand more than 9.7 percent ethanol content.

The data show that ethanol comprised 12.5 percent of the gasoline pool in Minnesota in 2015. Not coincidentally, ethanol flex fuels like E85 are available at roughly one out of every eight stations in the Gopher State. In Iowa, gasoline contained an average of 11.5 percent ethanol in 2015, up from 10.3 percent in 2014 and just 9.5 percent in 2013. The 2015 data is the latest available and was just published by DOE’s Energy Information Administration.

Ethanol also exceeded 10.0 percent of gasoline consumption in 2015 in coastal states like California, Oregon, New Jersey, Massachusetts, Connecticut, and even Louisiana. For the first time ever, not a single state had average ethanol content below 9.0 percent in 2015, the data show. Vermont ranked last in average ethanol concentration at 9.18 percent.

In 2014, the national average ethanol content was 9.83 percent and 22 states (plus the District of Columbia) were above 10.0 percent on average.

RFA President and CEO Bob Dinneen said the DOE data underscore that the Renewable Fuel Standard (RFS) is working as intended to drive increased use of ethanol and other biofuels. “As E15 and ethanol flex fuels like E85 have gained in popularity in recent years, the so-called blend wall has been reduced to a pile of rubble,” Dinneen said. “This data clearly shows that the RFS is delivering on its promise to expand consumer access to lower-cost, cleaner fuel options at the pump. And with EPA putting the RFS back on track in 2017, the share of renewables in our nation’s motor fuel will only continue to grow.”

Read the original story here: DOE Data: Half of United States Broke Through So-Called "Blend Wall" In 2015

Ethanol Producer Magazine

Dec 9, 2016

By Anna Simet

A United Kingdom company has successfully converted a Minnesota ethanol plant into an n-butanol production facility, which is now online after two years of development.

David Anderson of Green Biologics Inc., the U.S. subsidiary of U.K.-based Green Biologics Ltd., said the plant has already made its first customer shipment and facility operations are going well so far. “We have a nice pipeline of customers lined up, and it’s pretty exciting times,” he said. “We’re going to ramp up production, and that will take from anywhere from 12 to 18 months, before it’s running at full capacity. But we’re meeting orders right now, which is always a nice thing.”

The first order was shipped out via bulk tank truck and in drums to a customer in the U.S., he said, but added that the company is working on capabilities to enable shipping to European customers as well.

The plant marks Green Biologics’s first commercial facility in the U.S., adding to its existing portfolio that includes a one-thirtieth-scale demonstration plant in Emmetsburg, Iowa, and a pilot plant in Gahanna, Ohio. Green Biologics acquired the Little Falls ethanol plant in December 2014 and renamed it Central MN Renewables LLC, taking advantage of the existing grain handling and storage facilities, fermentation assets, water treatment capabilities, and feedstock supply chain—corn—already in place. On top of that, most of the existing staff was kept in place, employees familiar with the facility, new technology and, Minnesota winters, during which Anderson said he doesn’t foresee any operational challenges. “The good news is this plant already existed as a fully functional ethanol plant, they’re [plant staff] a hearty bunch up there,” he said. “It’s the same crew, we didn’t change out a whole lot, and we have even added some head count there.”

Area growers and the state supported the project, including the Minnesota Department of Employment and Economic Development, and the Minnesota Department of Agriculture, which awarded the project $500,000 in state Next-Gen funding last year.

On future development, Anderson said the company is always looking for additional assets, but it’s possible the Little Falls site could be expanded, and fairly easily. “Rather than doing another retrofit project at a different location, we can weigh the options to determine whether it’s more effective to expand the existing asset,” he said. “The whole concept of our fermentation process says that the fermenter can produce more product than we can currently distill, so to add more capacity, it really just means add some more distillation columns to the end of the process, and it’ll give us more yield.”

Green Biologics’ advanced fermentation process can convert a wide range of feedstocks into green chemicals such as n-butanol, acetone and, through chemical synthesis, derivatives of butanol and acetone. For now, and for the foreseeable future, Anderson said, Green Biologics will focus on specialty markets. “We’ve been watching how the markets are developing—the larger, more commodity-type end-uses for n-butanol, and we decided to change our strategy and become less focused on that, and more focused on specialty applications where, under our own brand name, we put products in small bottles in retail stores,” he said.

Anderson said that to date, Green Biologics has avoided the transportation fuel market. “Once oil gets back up to a reasonable number, $100 per barrel, we might look at it again, but right now, we don’t see potential in trying to slug it out. The battlefield of renewable chemicals is littered with companies, but making a run for it.”  

Read the original story here : Minnesota n-Butanol Plant Comes Online

Daily Globe

December 7, 2016

By Representative Tim Walz

Following a bipartisan letter my colleagues and I sent on July 13 to the Environmental Protection Agency (EPA), the Obama Administration made a momentous decision affecting both US energy policy and the rural economy. On Nov. 23, the EPA released its 2017 volume obligations for transportation fuels under the Renewable Fuel Standard (RFS), and to the relief of rural America, the RFS is back on track.

After calling on the administration to aggressively expand the production of renewable fuels to levels consistent with congressional intent, the EPA reversed its initial proposal to cut RFS volumes and instead increased the 2017 target for ethanol by 200 million gallons, bringing it in line with the 15 billion gallon per year target in the RFS law. The final rule also increased the target for advanced biofuels by 280 million gallons.

I would argue that this decision, while not as high-profile as the Paris Climate Accord, is more consequential to Minnesota’s First District.

The RFS, first introduced in 2005 and expanded in 2007, is the most significant program ever established by Congress aimed at invigorating rural economies, achieving energy independence and tackling the threat of climate change.

For climate change and greenhouse gas (GHG) emissions, the equation is fairly simple: renewable transportation fuels emit less carbon than gas. Thus, at a time when the administration is clamping down on emissions and placing regulatory burdens on power plants to reign in carbon, it only made sense for the EPA to drop its misguided proposal in favor of increased renewable fuel volume obligations. The emission reductions that will result constitute another step in the right direction towards tackling the threat of climate change.

Similarly consequential is the significant economic impact of the RFS. The RFS has helped employers create thousands of jobs and jumpstarted local economies throughout the country. In the ethanol industry alone, the RFS has contributed to nearly 400,000 American jobs, bringing in more than $44 billion in economic activity. Today there are at least 211 ethanol bio-refineries across the country and new biofuel production facilities are in the works that will create even more jobs. The final 2017 RFS volumes will undoubtedly protect and expand this economic engine by spurring even more ethanol production.

Finally, the economic benefits of the RFS are significant, but equally as significant is the achievement of these benefits while at the same time lessening our dependence on foreign oil. Instead of sending our hard earned dollars out of the country to buy fossil fuels, we are drawing in investments from countries across the globe interested in supporting a renewable economic success story. In fact, since the creation of the RFS in 2005, America’s dependence on foreign oil has dropped by 45 percent.  The administration’s newly minted rule will help Minnesota’s ethanol producers continue to advance American energy security.

The EPA’s final rule fosters the RFS’ three distinct and important benefits: rural economic invigoration, energy independence and reduction of GHGs. I support the Administration’s November 23 decision and, as I have persistently done so in the past, I will continue to fight for a robust RFS that maintains congressional intent to promote these benefits.

Read the original story: Reinvigorating Renewable Energy in Southern Minnesota

Herald and Review

December 7, 2016

By Chris Lusvardi

DECATUR — Ethanol producers including Archer Daniels Midland Co. are hoping to find ways to increase usage of the product domestically and abroad.

Ethanol can continue to remain competitive, primarily because of its price advantage and benefits to air quality, Craig Willis, president of the ethanol business in ADM's corn processing business unit.

Willis spoke Tuesday during an agribusiness update seminar sponsored by Sikich held at the Decatur Conference Center & Hotel.

Having more retailers offer blends of E15 fuel is an important step, Willis said.

“We've worked several years to start the ball rolling downhill,” Willis said. “It's a domino effect as more E15 goes into the market. It affects everybody up and down the chain.”

Willis said 10 chains currently offer E15 at gas pumps in about 4,800 locations nationwide.

Exports continue to be significant as ethanol competes with other products around the world, he said.

Although gasoline prices have recently dropped and remained lower than a few years ago, Willis said it has led to more driving.

“Any growth in gas demand is more demand for ethanol,” Willis said.

The status of the ethanol industry was one of the updates related to agribusiness provided during the seminar.

The Midwest Inland Port continues to be the primary focus of local economic development efforts, said Ryan McCrady, Economic Development Corporation of Decatur and Macon County president. Marketing efforts are under way to make Decatur an attractive place for businesses to grow, he said.

The ADM intermodal ramp is at the center of those efforts, with users coming from surrounding areas including Springfield, Centralia and Peoria, McCrady said. That can lead to more job creation in Decatur as the ramp gets more use, he said.

“The benefit is it brings the costs down for everybody,” McCrady said. “Regional collaboration is the wave of the future.”

A portion of Decatur's work force, about 10,400 workers, is driving in from other counties, McCrady said.

Work force availability and quality, transportation networks and quality of life are all factors for decision makers looking to attract and retain employees, each of which McCrady said Decatur can provide.

The Midwest Inland Port and ethanol are among the big ideas and opportunities available in agriculture, said Tom Bayer, Sikich's partner in charge of agribusiness services. Bayer discussed various opportunities for tax credits, including for farmers, that can help businesses reach desired profit numbers.

“The business of farming has gotten more complicated,” Bayer said. “A lot of risk is out there.”

Commodity prices have made margins thinner, which Bayer said means farmers need to look at all opportunities.

Read the original story: Ethanol Industry Offers Agribusiness Potential

Minnesota Ag Connection

December 5, 2016

U.S. Sen. Al Franken (D-Minn.) issued the following statement after the Environmental Protection Agency (EPA) finalized a strong 2017 Renewable Fuel Standard (RFS), which dictates how much biofuel is blended into our nation's fuel supply.

Six months ago, the EPA proposed 2017 renewable fuel volume requirements that Sen. Franken said weren't good enough. Since then, he's pressed the Obama Administration to make the RFS stronger, and today, the EPA acted by improving future biofuel targets for ethanol, biodiesel, and advanced biofuels.

"The Renewable Fuel Standard creates good jobs, promotes homegrown energy, and decreases our reliance on foreign oil," said Franken, a member of the Senate Energy Committee. "So that's why earlier this year, when the EPA proposed inadequate RFS targets for 2017, I immediately fought back. I'm very pleased to see that the Obama Administration listened and that we're going to see stronger requirements for ethanol, biodiesel, and advanced biofuels. This is big news for farmers, rural businesses, and communities across Minnesota."

The RFS was created around a decade ago as a method to expand our energy portfolio by requiring that the nation's fuel supply is blended with renewable fuels like ethanol and biodiesel.

Read the original story: Franken Successfully Helps Fight to Improve RFS

KIOW Radio

December 4, 2016

By AJ Taylor

At the Homeland Security and Governmental Affairs’ Subcommittee on Regulatory Affairs and Federal Management hearing entitled “Examining Two GAO Reports Regarding the Renewable Fuel Standard,” U.S. Senator Joni Ernst (R-IA) stressed the importance of maintaining a strong Renewable Fuel Standard (RFS) to continue to grow the rural economy in Iowa, and bring consumer choice at gas pumps across the country.

As Senator Ernst noted, the RFS “really has spurred investment in domestic energy production, it’s helped grow our economy throughout the Midwest, especially in those rural areas, and it’s brought a lot of competition–needed competition—to the gas pump, and saves American consumers money and reduces reliance on foreign oil sources.”

Ernst pointed to a GAO report which illustrated that bolt-on cellulosic technology at existing plants is the most cost-effective means for generating advanced biofuels.

Specifically, the Iowa Senator highlighted a stop on her 99 county tour in Galva, Iowa, in which she explained the facility is “using corn fiber, which is a by-product of the ethanol process to create cellulosic ethanol. This is a great example of what this was originally intended to do; it was to support the expansion of conventional biofuels, as a springboard for those advanced biofuels.”

The Iowa Senator also cited her concerns over premature criticism of the RFS, “If we create further uncertainty about the future of the RFS and our commitment to biofuels, it will only serve to slow our research and investment down towards attaining those goals originally set by Congress.”

Senator Ernst’s remarks today follow her comments over the Environmental Protection Agency’s (EPA) recent release of their final RFS renewable volume obligations (RVO) for 2017 at the Congressionally-approved level of 15 billion gallons of conventional biofuel.

Read the original story: Ernst Stresses Importance of Strong RFS for Rural Economies at Hearing

TheStreet

December 2, 2016

By Ted Reed

United Airlines (UAL) , which uses about 4 billion gallons of fuel annually -- making it one of the world's biggest fuel consumers -- also has become the airline industry's leader in seeking to reduce global carbon emissions.

United said it accounts for about 60% of the global aviation industry's commitment to biofuels. It expects to purchase about 900 million gallons of biofuel or 90 million gallons a year for the next 10 years.

According to United figures, Cathay Pacific is second, committed to 413 million gallons of biofuel use, while JetBlue is committed to 109 million gallons, Lufthansa is committed to 42 million gallons and other airlines collectively are committed to about 70 million gallons.

In March, in a demonstration of its commitment, United became the first U.S. airline to use a high percentage of biofuel (about 30%) to power a regularly scheduled flight, which operated between Los Angeles and San Francisco for two weeks.

On Friday, sustainability officers from United, JetBlue and Alaska will discuss their efforts during the final day of a Fort Lauderdale, Fla. conference presented by Jersey City, N.J.-based Companies Vs. Climate Change, which seeks to provide a forum for businesses to discuss climate change solutions.

United is "trying to grow the biofuels industry for aviation," said Natalie Mindrum, the carrier's director of environmental responsibility. "We want to be a leader in this area."

Biofuels are sustainable fuels created from renewable sources, such as agricultural waste and even household wastes, but not, in United's case, from corn or other edible sources. "We are not competing with food sourcing," Mindrum said.

U.S. commercial aviation produces 2% of the nation's man-made greenhouse gas, while driving 5% of GDP, according to figures from Airlines for America.

Most airlines seek to reduce fuel use through the purchase of new aircraft, the installation of winglets on aircraft, and fuel conservation programs such as single-engine taxi, careful calibration of how much fuel to carry and the use of electricity rather than engines when aircraft are on the ground.

But United goes a step farther in its biofuels commitment, which has played out in two efforts.

One is a partnership with AltAir Fuels, a Paramount, Calif.-based biofuel company. United signed its first agreement with Altair in 2009; fuel production begin in March 2016. "We will purchase up to 15 million gallons annually over the next three years," Mindrum said. "This is a small percentage, but we have to start somewhere."

In a continuing effort, at Los Angeles International Airport, United has spearheaded the inclusion of biofuel (a single-digit percentage) in the airport fuel supply used by all of the airport's carriers.

Fuel from AltAir is provided to the fuel farm at LAX, with the result that "every flight {which takes on fuel at LAX} has a small quantity of biofuel," she said.

The bulk of United's potential biofuel use will result from a partnership with Fulcrum BioEnergy, a Pleasanton, Calif.-based company that seeks to convert municipal waste into aviation biofuel.

In 2015, United invested $30 million in Fulcrum, the single largest investment by a U.S. airline in alternate fuel. The two companies envision joint development of up to five projects at United's hubs, expected to produce 180 million gallons of biofuel annually. The first site has yet to be selected.

Fulcrum takes household trash, converts it to gas through one process, and then converts carbon monoxide and hydrogen gases into liquid fuel. Cathay Pacific has also invested in Fulcrum.

Mindrum said the use of Altair fuel reduces carbon dioxide emissions by 60%, while the use of Fulcrum fuel reduces carbon dioxide emissions by 80%. "By using waste, we are not pulling fossil fuels out of the ground," she said. "We are using {materials} that have already been pulled out."

U.S. airlines are all committed to reducing carbon emissions, although the extent of their current commitments vary.

Among the four largest carriers, American (AAL) -- which already has the youngest fleet of the network carriers -- takes a new airplane every week. Employees are strongly encouraged to seek out methods to reduce fuel consumption, and the carrier is "evaluating the alternative jet fuel industry and identifying the most promising companies and technologies," said spokesman Matt Miller.

Delta (DAL) has reduced fuel burn per available seat mile by 6% since 2008 and is phasing out some older aircraft, such as the Boeing 747 and 50-seat regional jets. It has a program that enables passengers to make financial contributions to offset the environmental impact of its flights.

"We're the only U.S. airline committed to carbon-neutral growth," said spokesman Trebor Banstetter. "We also nabbed the top airline spot for global companies in the 2016 Newsweek Green Rankings, ranking 85th."

Southwest  (LUV) not only is modernizing its fleet and implementing fuel savings project, but also it signed a 2014 agreement with Red Rock Biofuels to purchase 3 million gallons of biofuel annually.

"This renewable fuel will be refined in Oregon from forest residues, helping to reduce the risk of destructive forest fires," the carrier said on its website. "The blended product of biofuel and jet fuel is expected to be used at Southwest's San Francisco Bay Area operations, with first delivery anticipated in 2018."

Read the original story: How United Leads the Airline Industry in Reducing Carbon Emissions

Renewable Fuels Association

December 1, 2016

By Rachel Gantz

Today the Senate Homeland Security & Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management is holding a hearing examining two reports by the Government Accountability Office (GAO) on the Renewable Fuel Standard (RFS). The reports incorrectly suggest the RFS is falling short of its goals to support commercialization of advanced and cellulosic biofuels.

In response to the hearing and the GAO reports, Renewable Fuels Association (RFA) President and CEO Bob Dinneen issued the following statement:

“This hearing and the GAO reports really miss the point. The RFS has been a resounding success by any measure. It has created high-paying jobs across America, reduced oil imports from OPEC, lowered consumer fuel prices, slashed emissions from the transportation sector, and driven substantial investment into advanced and cellulosic biofuel technologies.

“While first-generation biofuels were already proven in 2007 when Congress expanded the RFS, legislators knew full well that the pace of commercialization for advanced and cellulosic biofuel technologies was somewhat uncertain. That’s precisely why Congress included measures allowing EPA to adjust advanced and cellulosic volume requirements. Indeed, the volumes in the 2007 bill were not a forecast, but rather an aggressive goal and bold vision to support the creation of a vibrant low-carbon advanced biofuel market.

“That bold vision is in fact being realized, and advanced biofuel production has grown dramatically under the RFS. Production and use of advanced biofuels has risen from less than 200 million gallons when the original RFS was adopted in 2005 to approximately 4 billion gallons (RINs) in 2016—a 20-fold increase. That’s a remarkable achievement that simply wouldn’t have occurred without the RFS.

“GAO also ignores a number of important factors that have impeded more rapid growth in advanced and cellulosic biofuel production. The Great Recession and financial crisis, lengthy delays by EPA in setting annual RFS volume requirements, uncertainty caused by oil industry lawsuits and repeal efforts, and OPEC manipulation of world oil markets are just a handful of unforeseen challenges that have undercut more rapid development of next generation biofuels.

“Still, even with that uncertainty and instability in the background, leading innovators like DuPont, POET/DSM, Quad County Corn Processors, East Kansas Agri-Energy, CHS, Adkins Energy, ICM, Valero and many others are showing that advanced and cellulosic biofuels are real and are poised for explosive growth in the years ahead.”

Read the original story: RFA Statement on Senate Hearing Focused on GAO RFS Reports