In the News
December 13, 2017
By Senator Deb Fischer
Shortly after the founding of our nation, American citizens engaged in a debate about what kind of country they and later generations would live in. No one understood the value of rural Americans more than Thomas Jefferson. Writing in a letter to John Jay, the author of the Declaration of Independence stated, “Cultivators of the earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its liberty and interests by the most lasting bands.” Then serving as secretary of state, Jefferson understood that the products of rural America, through trade, would be our connection to the rest of world and lay the groundwork for our freedoms.
That sentiment still rings true today, and I am proud of the work done in the Senate and by the administration to support and promote the prosperity of rural America.
Nebraska is the second largest ethanol-producing state in the country with 25 ethanol plants that have the capacity to produce more than 2 billion gallons of renewable fuel annually. Biofuel contributes $5 billion to Nebraska’s economy every year, and Nebraskans fill more than 1,300 full-time jobs related to its production.
As a member of the Senate Environment and Public Works Committee, I was happy to see that the Environmental Protection Agency (EPA) announced the finalized 2018 Renewable Volume Obligations (RVOs) and 2019 biomass-based diesel volumes under the Renewable Fuel Standard (RFS). The final rule set the total renewable fuel volume at 19.29 billion gallons. This included 15 billion gallons of conventional biofuel and 4.29 billion gallons of advanced biofuel.
These volumes provide clarity for Nebraska’s ag producers and innovators focused on the future of biofuels. Moreover, the final rule illustrates a commitment to rural America. It will continue to foster investment in the Americans who feed the world and provide renewable energy solutions to match our country’s energy needs.
Good agriculture policy also relies heavily on trade that is both smart and fair. According to the Office of the United States Trade Representative, Nebraska ranks fifth in the country in the value of its agricultural exports. Over 90 thousand jobs rely on exporting Nebraska’s high-quality products through the North American Free Trade Agreement (NAFTA).
I support fair trade because it helps Nebraskans provide for their families.
Recently, I had the opportunity to speak with President Trump at the White House and expressed my support for trade agreements. During our conversation, I highlighted the significant role the NAFTA plays in expanding agriculture exports and creating manufacturing jobs in the United States. I urged him to safeguard the competitive advantage our agriculture producers and manufacturers have worked so hard to build as his administration negotiates with our North American trade partners.
As a member of the Senate Commerce Committee, I also met with Secretary of Commerce Wilbur Ross and again emphasized the value of NAFTA to rural America. I look forward to continuing these discussions with the president and his administration in the weeks to come.
Rural America puts food on tables all over the world and serves as the foundation for a healthy, growing economy. For our country to continue moving forward, we need to ensure that our farmers and livestock producers have stable and dependable markets for their products. I work every day to make sure that continues to happen.
Thank you for participating in the democratic process. I look forward to visiting with you again next week.
Read the original article: Fischer: Standing Up for Rural America
December 8, 2017
By Syngenta
Syngenta has announced a partnership with Green Plains Inc. to expand its use of Enogen corn enzyme technology across its 1.5 billion gallon production platform.
Green Plains is one of the largest owners of ethanol production assets in the world, purchasing more than 500 million bushels of corn each year. Using Enogen corn as a portion of the feedstock enables alpha amylase to be delivered directly in the grain, eliminating the need to add a liquid form of the enzyme and significantly reducing the viscosity of the corn mash.
According to Green Plains President and CEO Todd Becker, the opportunity to enhance production and invest locally are key benefits of using Enogen corn.
“We have been using Enogen corn at a number of our locations for the past several years and have noted significant benefits, including enhanced yield and reduced energy costs,” Becker said. “Combining our focus to buy more corn directly from farmers and purchasing alpha amylase locally, in the form of high-quality grain for all of our plants, we believe Enogen will create value for our shareholders, growers and the communities where we do business.”
Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and creates a win-win-win scenario by adding value for ethanol plants, corn growers and rural communities. Enogen is making dramatic gains not only in the field, but in ethanol plants, as well, and is helping to fuel enzyme innovation.
“Enogen is rapidly gaining popularity because of the value it delivers to ethanol producers and the opportunity it provides corn growers to be enzyme suppliers for their local ethanol plants,” said Jeff Oestmann, head of biofuels operations – Enogen at Syngenta. “Enogen corn enzyme technology creates increased profit potential for ethanol producers and corn growers while adding significant incremental value at the local level for communities that rely on their ethanol plant’s success.
“Syngenta is committed to the success of the U.S. ethanol industry and to helping ethanol plants adopt the best enzyme strategy. We are proud to have made a significant investment to bring this game-changing technology to market to help make ethanol more sustainable and to help plants differentiate their offerings and support their local communities by keeping enzyme dollars local,” Oestmann added.
Today, 97 percent of America’s motor fuel mix contains about 10 percent ethanol, and higher blends are increasingly available. These new consumer options have appeared, in part, due to the work of the ethanol industry in pushing for more options like E15 for consumers at the pump. Ethanol is helping America reduce its dependence on foreign oil, and is helping to create jobs that can’t be outsourced. Enogen not only helps keep enzyme dollars in local communities, it also supports the creation of jobs in the United States.
The robust alpha amylase enzyme found in Enogen grain helps an ethanol plant significantly reduce the viscosity of its corn mash and eliminates the need to add a liquid form of the enzyme. This breakthrough reduction can lead to unprecedented levels of solids loading, which directly contributes to increased throughput and yield, as well as critical cost savings from reduced natural gas, electricity and water usage.
Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. And, numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.
Read the original story: Green Plains to Use Enogen Corn from Syngenta
December 11, 2017
Press Release
ENGLEWOOD, Colo., Dec. 11, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that GE Aviation had commenced jet engine combustor component testing with a jet fuel comprised 100% of Gevo’s renewable alcohol-to-jet fuel (ATJ) . The testing is being performed as part of the Federal Aviation Authority’s (FAA) Continuous Lower Energy, Emissions and Noise Program (CLEEN). CLEEN is the FAA's principal environmental effort to accelerate the development of new aircraft, engine technologies, and to advance sustainable alternative jet fuels, in conjunction with aviation industry leaders such as GE Aviation.
Specifically, this testing is designed to enable the greater displacement of petroleum-based jet fuel by bio-based alternative products. Bio-based hydrocarbon fuels have similar performance characteristics to the petroleum-based fuels used today, albeit with reductions in particulate matter and other air quality related emissions. Some bio-based jet fuels, such as Gevo’s ATJ, have the potential to improve performance, such as providing greater energy density which translates into better mileage.
GE Aviation is a part of General Electric Company, and is a world-leading provider of jet engines, components and integrated systems for commercial and military aircraft.
“GE Aviation’s collaboration with the FAA and Gevo under CLEEN is an excellent example of our long-standing commitment to sustainable aviation. Efforts such as this one are expected to help accelerate the transition from petroleum-based fuels to more environmentally friendly ones,” said Dr. Gurhan Andac, Engineering Leader, Aviation Fuels & Additives, GE Aviation.
“If we are truly going to reduce our greenhouse gas (GHG) emissions from aviation, we need to be able to replace larger percentages of petroleum jet fuel with bio-based alternatives such as Gevo’s ATJ. The future is to replace the whole barrel of oil with bio-based hydrocarbons that stimulate the economy, mitigate GHG emissions, draw on abundant resources and enhance sustainability. We want to thank the FAA and GE Aviation for their vision in supporting projects like this one,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, MN. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Learn more at our website: www.gevo.com.
Read the original release: Testing Being Performed as Part of FAA’s CLEEN Program to Promote the Use of Bio-Based Jet Fuels
December 7, 2017
By Erin Voegele
The U.S. ethanol industry set a new production record the week ending Dec. 1, with production averaging 1.108 million barrels per day, according to data published by the U.S. Energy Information Administration. The new production record breaks the one set in mid-November, when production averaged 1.074 million barrels per day the week ending Nov. 17.
EIA data shows the U.S. ethanol industry has set new records for weekly ethanol production five time so far this year, including three new records that were set in January, one that was set in November, and the current record set the week ending Dec. 1.
In its Short-Term Energy Outlook for November, the EIA predicted that ethanol production will average 1.03 million barrels per day this year, increasing to 1.04 million barrels per day next year.
Read the original article: US Ethanol Industry Sets New Production Record
December 7, 2017
U.S. ethanol exports totaled 93.6 million gal. in October, up 8% from September shipments, according to government data released this week and analyzed by the Renewable Fuels Assn.
Ann Lewis, research analyst for the association, noted that Canada was again the top destination for U.S. exports, at 33.9 million gal. (more than one-third of total exports) — an 18% increase over September. Spain was the second-leading market for U.S. ethanol in October, making its first meaningful purchase in 37 months and taking in 13.4 million gal. India's imports of U.S. ethanol fell 35% from September to 13.2 million gal., but that was good enough to rank third in October.
U.S. ethanol exports to all destinations for the first 10 months of 2017 stood at 1.09 billion gal., indicating an annualized export volume of 1.30 billion gal.
Four countries — Canada, Spain, India and Brazil — accounted for 78% of all shipments in October, while another 20% was parsed out among seven other markets.
Exports to Brazil in October ticked downward for the third straight month, which Lewis said was likely a result of the nation implementing a tariff rate quota and 20% tariff in September. U.S. shippers sent 12.9 million gal. of ethanol to Brazil, which was a 32% decrease from September.
According to the data, October exports of undenatured fuel ethanol decreased 12% to 43.0 million gal. — the lowest volume in 13 months — as the two largest undenatured markets significantly decreased their imports. The U.S. shipped 13.2 million gal. to India (down 35%) and 12.9 million gal. to Brazil (down 32%). The Philippines (4.6 million gal.), Mexico (3.0 million gal.) and Spain (2.9 million gal.) rounded out the top five largest markets for undenatured product.
U.S. exports of denatured fuel ethanol recovered in October, with a 47% increase to 46.6 million gal. Canada (32.9 million gal.) and Spain (10.5 million gal.) represented the lion's share of the denatured fuel ethanol export total, Lewis said.
Overseas sales of undenatured ethanol for non-fuel, non-beverage purposes decreased by a third to 2.2 million gal. Saudi Arabia purchased 1.7 million gal. (76% of exports), with the remaining volumes distributed to multiple countries. Exports of denatured ethanol for non-fuel, non-beverage purposes decreased 34% to 1.8 million gal., with Canada (900,000 gal.), Nigeria (400,000 gal.) and Mexico (400,000 gal.) as the primary customers.
Lewis also noted that the U.S. recorded meaningful fuel ethanol import volumes for the sixth straight month this year, with 2.9 million gal. of Brazilian undenatured ethanol on the books in October. Year-to-date fuel ethanol imports totaled 55.8 million gal., a 66% increase over the same period last year. Still, annualized import volumes are estimated at just 66.9 million gal.
Data also showed that exports of dried distillers grains with solubles (DDGS) expanded 14% in October to 903,290 metric tons (mt), which Lewis said is the largest volume in seven months. The top three customers increased purchases over September levels, with Mexico remaining the top destination at 205,899 mt, up 15% from September. Other leading destinations included Turkey at 115,559 mt (up 35%), Vietnam at 102,004 mt, South Korea at 84,642 mt and Indonesia at 84,448 mt.
Read the original article: U.S. Ethanol, DDGS Exports Up in October
December 4, 2017
By Mike Crawley
The Ontario government is proposing to double the minimum amount of ethanol in gasoline, a step that would form one of the province's biggest moves toward hitting its greenhouse gas (GHG) reduction targets.
The plan puts Ontario on track to become the first province to require fuel suppliers to put at least 10 per cent ethanol in regular gasoline, starting in 2020. The province's current minimum ethanol mandate is five per cent.
The proposed changes would reduce carbon emissions by about two megatonnes per year. That's the equivalent of taking about 130,000 cars off the roads, according to Chris Ballard, minister of the Environment and Climate Change.
"Increasing ethanol content in gasoline is a very significant step forward in helping us meet our targets," Ballard said Friday in an interview with CBC News. "We're trying to drive down what's coming out of people's tail pipes in terms of carbon content."
Ontario's proposal would require the ethanol that is blended into fuel to be 35 per cent lower in net greenhouse gas emissions than gasoline.
Transportation produces about one-third of Ontario's carbon emissions, more than any other sector.
"It's a really important move to make sure we're de-carbonizing our transportation sector," said Erin Flanagan, a director of policy for the Pembina Institute. "These kinds of policies make a lot of sense."
"This is really going to help spur investment in our industry," said Jim Grey, chief executive of IGPC Ethanol Inc. and chair of Renewable Industries Canada, the national association of biofuel producers.
"It is probably the most significant, and one of the quicker ways that the government can help move toward its target on GHG reductions," Grey said in a phone interview.
The federal government is in the midst of creating a new cleaner fuel standard that could involve mandating an increase in the minimum required ethanol content nationally, currently set at five per cent.
Canada's Ecofiscal Commission, an independent group of economic policy analysts, reported recently that while biofuels like ethanol have resulted in significant reductions in greenhouse gas emissions, they have done so at a high cost to taxpayers and the economy.
The commission recommends governments phase out their ethanol content rules, rather than increase them as Ontario is doing. Their report argued that the quota gives an unfair advantage to ethanol producers and inhibits the development of other low-carbon technologies.
"Decarbonizing the transportation sector will involve many different and competing technologies; the technologies that prove the most effective and economically viable should win the day," said the report.
The Liberal government in Ontario mandated the five per cent minimum ethanol content rules in 2007. Since then, the government pumped some $500 million in public money into ethanol producers.
An ethanol company was the biggest corporate donor to the Ontario Liberal Party in recent years, a CBC News investigation found in 2016. GreenField Specialty Alcohols Inc., its related companies and its founder donated more than $480,000 to the party since 2007, while receiving more than $160 million in public funding.
On Thursday, the U.S. Environmental Protection Agency announced that refiners must use 15 billion gallons of conventional renewable fuels (predominantly ethanol) next year, holding steady with the quota it set for 2017. There has been pressure on the Trump administration from oil-producing companies to reduce the renewable quota, while midwestern corn-producing states wanted to see an increase.
Some critics have blamed rising ethanol demand for soaring food prices, but the scientific evidence is unclear.
Read the original article: Ontario Looks to Double Amount of Ethanol in Gasoline
November 30, 2017
Press Release
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN), a member of the Senate Agriculture Committee, issued the following statement following the release of the Environmental Protection Agency’s 2018 and 2019 Renewable Fuel Standard (RFS) volume requirements.
“Renewable fuels are a Minnesota-grown economic generator for our state and country. The Administration’s choice to maintain ethanol volume requirements for 2018 and 2019 is a good decision that underscores the importance of—and signals a commitment to—corn ethanol. However, failing to increase the blend targets of advanced biofuels hamstrings the growth we have seen in clean energy innovation, needlessly flat-lining a sector that creates good jobs and strengthens rural communities. A strong RFS means a strong economy, improved national security, prosperous rural communities, and U.S. leadership in the energy of the future. I’ll continue to work with the Administration to ensure that the standard is administered in a way that is good for Minnesota and rural communities across the country.”
For years, Klobuchar has led a bipartisan push for the EPA to release a stronger RFS to support American jobs and decrease dependence on foreign oil. Last November, the former Administration released a stronger final rule for 2017, which will require a record amount of biofuel to be mixed into our transportation fuel supply next year. Minnesota’s twenty ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. In April, Klobuchar and Senator Chuck Grassley (R-IA) led a bipartisan group of 23 senators in urging the Administration to reject changes to the RFS that would upend stability and predictability for small businesses and rural communities.
Read the original release: Sen. Klobuchar on EPA Release of Renewable Fuel Standard Requirements
November 28, 2017
By DTN/Progressive Farmer
China’s newly instituted E10 mandate has the potential to create more demand for both corn and ethanol produced in the United States, according to a new analysis from the Center for Agricultural and Rural Development at Iowa State University.
In its fall 2017 agricultural policy review, CARD said there are many unknown details about China’s mandate. However, the Chinese are expected to see an increase in gasoline consumption from about 40 billion gallons in 2017 to 46 billion gallons in 2020.
“Meeting the national E10 mandate would require an extra 3.6 billion gallons of ethanol, putting China ahead of the European Union to become the world’s third-largest ethanol consumer,” CARD said.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than fourfold output growth within three years (assuming domestic production is to keep up with consumption).”
As U.S. ethanol producers have faced concerns about the implementation of the Renewable Fuel Standard in recent years, there has been an increased emphasis on growing export markets in China and elsewhere.
China’s government announced the new E10 mandate in September as a way to decrease the nation’s corn stockpiles that peaked at more than 4 billion bushels in 2015-16.
According to CARD, the total accounts for about half of world ending stocks and would be enough for domestic consumption for about six months in China. The stockpiles grew as a result of a corn price support policy that was paying Chinese corn producers more than twice the international price level until 2016.
“Burdened by high storage cost, food safety risks, and potential waste, China recently adopted multiple measures to cut supply and increase demand,” CARD said.
“These measures include replacing the support price with a producer support based on planted area and financial assistance for corn processors. These measures have been effective — since 2015, China’s corn consumption has caught up with production, the price for corn dropped to the lowest point in six years, and ending stock has been decreasing. The E10 mandate will further increase the demand for corn and speed up reduction of the stockpile.”
CARD said the mandate started on a trial basis in 11 provinces and will become national by 2020.
“This measure would require ethanol consumption in China, the largest motor vehicle market in the world, to at least quadruple within the next three years,” the analysis said.
“For U.S. producers, this recent development fuels interest in whether China is going to import ethanol and/or corn (the main feedstock for ethanol production in China) to meet the mandate.”
CHINA ETHANOL GAINS
CARD said that in 2016, China produced more than 1 billion gallons of ethanol. It became the fourth-largest ethanol-producing nation in the world behind the United States, Brazil and the European Union. China’s average annual production growth rate in ethanol production was about 17% from 2004 to 2016.
China’s primary ethanol feedstock is corn, according to the report, which accounts for about 64% of ethanol production in the country. China started ethanol production at four state-owned plants in northern China in 2002 after corn stockpiles reached historical highs.
“As the stockpile decreased and refineries started to use newly harvested corn for feedstock, the government stopped approving additional generation-one ethanol refineries in 2007. By calling for ‘appropriate development of grain-based ethanol,” according to CARD, “the current national E10 mandate relaxes the government’s previous stance against corn-based ethanol.”
In 2006, China began development of ethanol production using cassava. The starchy root plant now accounts for about 23% of China’s total ethanol production.
“However, it is challenging to grow enough generation 1.5 feedstock domestically, and cassava refineries in China still heavily rely on imports,” CARD said.
“Cassava refineries are located in southern China, close to domestic and foreign cassava production regions. Recently, China has been encouraging ethanol production using cellulosic feedstock. However, cellulosic ethanol production is not expected to reach large-scale production until 2025.”
The CARD analysis said recent low oil prices have hurt Chinese ethanol producers. In addition, the Chinese government gradually has removed ethanol subsidies.
“China has been importing substantial quantities of ethanol in the past two years,” CARD said.
“Before 2015, even though the imported ethanol was much cheaper than domestic ethanol, very little ethanol was imported. This is due to government forbidding distributors to handle imported ethanol in order to protect the domestic ethanol industry.”
US IMPORTS
In 2015, ethanol imports to China reached almost one-quarter of the country’s total supply in 2016, or about 225 million gallons. About 95% of those imports came from the United States. China was U.S. ethanol’s third-largest export destination in 2016, amounting to about 17% of total U.S. ethanol exports.
At the end of 2016, China increased the ethanol import tariff from 5% to 30%. CARD said that action caused the forecast for imports in 2017 to fall to just 35% of 2016 levels.
With a national E10 mandate in place, however, CARD said China will need to take action to ramp up ethanol availability.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than four-fold output growth within three years,” the report said.
“Currently, production capacity utilization rate is about 85%; therefore, a short-term production spur can be achieved with existing facilities. Beyond that, a dramatic increase in capacity is needed. Since it takes one to two years to build a large-scale generation 1 or 1.5 refinery in China, it is possible that China will be able to construct the physical facilities in time.”
If current trends in production and consumption continue, according to CARD, “China’s corn stock will fall quickly, opening up potential opportunities for more imports.”
The analysis said China’s E10 mandate is likely to speed up the reduction in corn stockpiles, requiring between 650 million and 1.35 billion bushels of corn per year.
“If China wants to maintain a stockpile of 1.39 billion bushels, the lowest in recent history, it will need to import 2 billion bushels of corn by 2020-2021 and much more after that,” CARD said.
“China may change its policies if it finds high levels of corn import unacceptable. In the past, China has imported large quantities of ethanol when domestic production has fallen short of demand. If imports surge as a result of the E10 mandate, the United States, the top ethanol exporter to China, will benefit” even with a 30% tariff in place at the time of the analysis.
Read the CARD analysis here.
Read the original article: Report: US Corn, Ethanol Could Benefit From China E10 Mandate
More...
November 27, 2017
By DuPont Industrial Biosciences
DuPont Industrial Biosciences has announced the launch of Synerxia Thrive Fermentation System, the newest innovation in the company’s synergistic fermentation system technologies. The new fermentation system will deliver higher ethanol yields, incomparable robustness during thermal excursions and improved performance.
“With the new DuPont Synerxia Thirve Fermentation System, ethanol producers can now expect up to 4 percent higher ethanol yields in dry grind fuel alcohol facilities, when compared to conventional systems,” said Joseph DeSalvo, North America regional industry leader, DuPont Industrial Biosciences. “Synerxia Thrive is the result of a multiyear investment in yeast technologies focused on improving performance in ethanol fermentation to deliver increased value to our customers.”
DuPont Synerxia Thrive Fermentation System consists of a new active dry yeast (ADY), Synerxia Thrive ADY and Synerxia Thrive LC, a glucoamylase liquid complement. The new system blends the right combination of yeast and enzymes to deliver up to 4 percent additional ethanol versus a conventional yeast and glucoamylase combination.
Synerxia Thrive ADY incorporates a patent pending, carbon-efficient pathway that redirects a portion of the carbon that would go into CO2 and glycerol into ethanol production. In lab and plant results, the Synerxia Thrive Fermentation System outperformed conventional yeasts during thermal excursions and demonstrated increased robustness in the presence of organic acids.
“The launch of Synerxia Thrive Fermentation System gives ethanol producers the opportunity to integrate an unparalleled fermentation system into their business,” DeSalvo added. “We are thrilled to bring the technology to commercial scale to revolutionize the industry with our current and future partners.”
Read the original article: DuPont Launches Synerxia Thrive to Increase Ethanol Yields
November 23, 2017
By James Q. Lynch
The Environmental Protection Agency’s decision to deny attempts to change Renewable Fuel Standard rules is good news for the ethanol industry and fuel retailers who would have had to assume responsibility for blending ethanol with gasoline, according Iowa officials who opposed the changes.
“This is the right policy conclusion and I’m glad to see it happening,” Sen. Chuck Grassley said about the EPA decision announced Wednesday. “This decision puts the issue to bed, and certainty is so important. It’s a decision from the EPA that sides with the integrity of the RFS.”
Moving the point of obligation to blend ethanol with gasoline “from a handful of refiners to hundreds or thousands of small fuel retailers would undermine the integrity and viability” of the Renewable Fuel Standard, Grassley said. Refiners would have little incentive to produce the necessary fuel blends, which would make it difficult for fuel retailers to comply, he said.
Sen. Joni Ernst called it a “win for Iowans” that the administration is keeping President Donald Trump’s “pledge to rural America to advance the full potential of the RFS.”
However, the EPA ruling is not the final word on changes, according to Grassley’s office. A decision on proposed changes in the renewable volume requirements for cellulosic biofuel, biomass-based diesel, advanced biofuel and total renewable fuel renewable volume requirements is to be announced Nov. 30, the EPA said.
In rejecting a petition to shift the responsibility for blending renewable fuels to distributors, the EPA concluded that the change sought by oil interests would not benefit the program and could significantly reduce renewable volume obligations for ethanol and other renewable fuels under the fuel standard, which was implemented in 2005 as a way to support farmers, reduce imports and combat climate change.
That “ensures stability in the biofuels market,” said Gov. Kim Reynolds’ spokeswoman, Brenna Smith. “Gov. Reynolds expressed that to (EPA) Administrator (Scott) Pruitt on multiple occasions, and he genuinely listened to her concerns.”
The change sought by refiners was widely opposed by fuel marketers, retailers, truck stop operators, petroleum producers and renewable fuel producers because of the added complexity and the undermining of investments that businesses have made to comply, Grassley, Ernst and other senators from corn-producing states wrote to Trump.
“The overwhelming majority of transportation fuel market participants oppose any change to the point of obligation because it would cause massive disruptions and could lead to higher prices for consumers,” the letter states.
Changing the standard’s point of obligation would have rewarded “those who haven’t lifted a finger to help the implementation of the RFS and to punish those who have worked hard to make it the most successful energy policy in U.S. history,” Iowa Renewable Fuels Association Executive Director Monte Shaw said.
An administration official said that in the judgment of the EPA, changing the point of obligation would not result in a net benefit and would be disruptive to the program. Also, it would undermine “long-settled expectations, and the program stability” that are critical to success of the program.
Growth Energy, which represents producers and supporters of ethanol, called the proposed changes a “one-sided handout (that) would have added regulatory red tape, created havoc in the marketplace, and denied consumers access to more affordable fuels with higher blends of biofuels like E15.”
The RFS is America’s “single most successful energy policy,” saving consumers money, protecting the environment and improving U.S. energy independence, Growth Energy said.
Read the original article: EPA Won’t Change Responsibility for Ensuring Renewable Fuels
November 20, 2017
By Erin Voegele
The Agricultural Utilization Research Institute has named The Chippewa Valley Ethanol Co. of Benson, Minnesota, its 2017 Ag Innovator of the Year. The award, which has been given annually for the past 15 years, will be accepted by CVEC Board Chair David Thompson and General Manager Chad Friese at the company’s board meeting on Nov. 20 in Benson.
Each year, the AURI Board of Directors bestows the Ag Innovator of the Year Award, the organization’s highest honor, on a client company or entrepreneur it feels has made a substantial impact in the areas of product innovation, uniqueness and commercialization potential. This year’s award is the culmination of 20 years of cooperative work between AURI and CVEC.
“There were a number of contenders for this year’s award, but the board of directors felt CVEC’s many accomplishments and innovations in the ethanol industry best fit the criteria,” said AURI Executive Director Shannon Schlecht. “CVEC contributes to Minnesota’s economy by purchasing more than 18 million bushels of corn from local farmers and has a capacity to produce tens of millions of gallons of ethanol annually, and is notable in its constant exploration of innovative changes to its products and processes to add value for its members.”
CVEC began as a dream between two Benson men more than 20 years ago. They wanted to make the most of the area’s corn production while also stabilizing electricity rates. From that dream came the Chippewa Valley Agrafuels Cooperative, a group of more than 650 shareholders that included producers, elevators, and local investors.
In 1995, CVAC became the general partner of an ethanol partnership, The Chippewa Valley Ethanol Co., and by early 1996 was in full operation at its own facility. Among its accomplishments, CVEC was the first direct blend E85 facility in the state. However, the innovation didn’t end there. Today its facility produces fuel, as well as high quality alcohols used in food and beverage applications as well as industrial and pharmaceutical applications.
Currently, CVEC has the capacity to produce 50 million gallons of ethanol annually. It is still a small-town, Minnesota company at heart, but has grown to 975 cooperative owners, with the majority living within a 50-mile radius of the plant. CVEC is recognized at both the federal and state levels for efficient production and leadership in shaping ethanol policy.
“CVEC is focused on adding value to its coop members through the continued utilization of corn and ag-based products for fuel, feed and food, which add value to rural America,” Thompson said.
Since beginning operations, CVEC has grown and diversified, counting its culture of innovation as a significant strength that has led to solid returns for its member owners. Currently the company has ownership interest in four other ethanol companies and is a founding owner of the Renewable Products Marketing Group.
RPMG has grown into one of the premier ethanol and co-product marketing firms in North America. With RPMG’s logistical ability and industry contacts, CVEC fulfills customer order and placement needs with product staged in terminals throughout the United States or adjacent to export facilities. RPMG’s motto is also a CVEC guiding principle, “We take care of our customers.”
AURI awarded its first Ag Innovator of the Year in 2003. Previous winners include Kay’s Naturals of Clara City (2016), EarthClean Corp. of South Saint Paul (2015) and Midwest Ag Enterprises of Marshall (2014), among others.
Read the original article: AURI Names Chippewa Valley Ethanol Co. Ag Innovator of 2017
November 16, 2017
Press Release
Countries representing half of the global population and 37% of the global economy today agreed to scale up the low carbon bioeconomy and develop collective targets prescribing the contribution of sustainable bioenergy to final energy demand and as a percentage of transport fuel use.
The decision is set out in a declaration released today by the Biofuture Platform member countries – entitled “Scaling Up the Low Carbon Bioeconomy”.
It is a major breakthrough for sustainable biofuels and the broader bioeconomy, which will now become a key component of the global solution to climate change.
The declaration is the culmination of nine months of negotiations and is the first time countries and other stakeholders have formally agreed to develop targets for biofuels and the bioeconomy, and construct an action plan to achieve them.
The declaration was adopted today at the COP23 Climate Change Conference in Bonn by member countries of the Biofuture Platform: Argentina, Brazil, Canada, China, Denmark, Egypt, Finland, France, India, Indonesia, Italy, Morocco, Mozambique, the Netherlands, Paraguay, the Philippines, Sweden, the United Kingdom and Uruguay.
“What we have just accomplished here with the endorsement of this statement is quite remarkable”, said Brazil’s Minister of the Environment, José Sarney Filho. “The technology and the awareness of the need for bio-based solutions are finally coming together.”
The decisions announced today have been informed by modelling from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) – both partners in the Biofuture Platform – concluding that the 2030 temperature goals adopted in the Paris Agreement cannot be reached without a major increase in the production and use of sustainable biofuels and bioproducts.
Specifically, the IEA and IRENA conclude that “in order to limit the increase in global average temperature to well below 20C above pre-industrial levels and pursue efforts to reach 1.5ºC, bioenergy and biofuels share in the global energy matrix must be accelerated to achieve at least a doubling in the next 10 years”. In specific sectors, such as transport, the need is even greater. “Biofuels in transport would need to grow three fold by 2030, most of it coming from advanced technologies using non edible feedstocks, including waste and residues.”, says Fatih Birol, Executive Director of OECD’s International Energy Agency (IEA).
In addition to developing specific targets, participating countries will “devise an action plan outlining detailed actions to support achieving the targets, [and] develop a reporting mechanism to track progress”.
“Because of its abundant, renewable raw materials and its integration with existing fuel systems, biofuels have been instrumental in reducing emissions and replacing existing fuels,” said Special Representative for Climate Change of China, Mr. XIE Zhenhua. “Through problem-oriented work methods, we should strive to form feasible proposals or solutions and promote transformative measures”.
While some progress has been made in growing the bioeconomy, there is an urgent need to drive investments and overcome challenges in scaling up production and use, including oil and feedstock price volatility and policy uncertainty.
To address such challenges, in the declaration member countries agreed that coordinated international action is required to implement policy solutions, many of which have already been adopted by member countries, including specific biofuels mandates, sustainable low-carbon agricultural policies, R&D support, and incentives related to verified carbons savings.
In the declaration, member countries also call for climate and green financing mechanisms and institutions to ramp up resourcing of bioeconomy projects as a top priority.
“It is important that the statement includes key actions, as concrete actions are needed to reach our common goals. All actors need to get involved. With wise policy measures, like streamlining regulation and creating incentives, we can create an encouraging business environment for bio-economy investments”, said Kimmo Tiilikainen, Minister of Environment of Finland.
“While renewables have made rapid progress in the power sector, energy transformation in end use sectors such as industry, heating and transport needs to be accelerated to meet climate objectives. Bioenergy will play a key role in this context. As such, we welcome the vision statement of the Biofuture Platform and will continue to support it as it works to build a sustainable energy future,” said Adnan Z. Amin, Director-General of the International Renewable Energy Agency (IRENA).
The full text of the declaration and more information about the Biofuture Platform – launched at COP22 in Marrakech – can be accessed here: http://biofutureplatform.org/statements .
The declaration was be launched today at an official event convened by the Government of Brazil and the Center for Strategic Studies and Management, entitled the “Biofuture Platform and the contribution of bioenergy to the Paris Agreement”. Details are below. Media and Parties attended the event.
At the event, Brazil provided an update on the RenovaBio Program to create financial incentives for investments in low-carbon biofuels, as part of its commitment to the Biofuture Platform. A bill to implement the program was introduced into the Brazilian Congress this week.
Read the original press release: Biofuture@COP23: Major Countries Agree to Scale up the Low Carbon Bioeconomy and Develop Sustainable Biofuels Targets
November 15, 2017
By the U.S. Grains Council
An announcement was posted last week on China’s Ministry of Foreign Affairs' website that the country would again allow U.S. distillers dried grains with solubles (DDGS) to be imported without charging an 11 percent value added tax (VAT), potentially impacting global DDGS market dynamics for the better.
The announcement was made in a report of key areas of consensus between the United States and China during President Donald Trump’s official visit this week. Other areas impacted include banking, security and autos.
"We are pleased to see this move, which we've been working toward for months," said Tom Sleight, U.S. Grains Council president and CEO. "This change will immediately improve the competitiveness of U.S. DDGS in what was once our top market, which is a very positive thing."
In January 2016, China’s Ministry of Commerce announced it would begin anti-dumping and countervailing duty investigations related to U.S. DDGS exports to its country. Those cases resulted in duties applied to U.S. DDGS and the ending of an ongoing exemption from paying the VAT. The combination of the duties and the VAT made U.S. DDGS exports to China even less competitive, affecting market prices and export flows globally. While the VAT has been removed, the anti-dumping and countervailing duties remain.
China's actions against U.S. DDGS elicited a strong and detailed response from U.S. ethanol and DDGS industries, coordinated by the Council. The Council’s staff members in China and the United States have been working closely with the U.S government at the highest levels for nearly a year to emphasize the importance of this $1.5 billion market to the U.S. grains and ethanol industries.
U.S. DDGS exports to China fell from 5.4 million metric tons in 2015 to 3.3 million metric tons in 2016 and just 739,000 tons so far in 2017.
More on the USGC’s work in China is available here.
Read the original article: USGC: China Reallows Exemption from Value Added Tax for US DDGS
November 14, 2017
By Rachel Gantz
Nearly 90 percent of new 2018 model year (MY) vehicles are explicitly approved by the manufacturer to use 15 percent ethanol blends (E15), according to the results of an annual analysis of warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA). That is up from last year, when approximately 81 percent of MY2017 vehicles were formally approved by automakers to use E15.
For the first time, Nissan Motor Company has warrantied the use of E15 in most of its MY 2018 vehicles, joining the majority of its competitors. Together, Infiniti and Nissan represent slightly more than 9 percent of the U.S. light-duty automobile market. Language allowing the use of E15 appears in the owner’s manuals for popular Nissan models, including the Altima, Maxima, Pathfinder, Rogue, and Sentra, as well as Infiniti’s QX60, Q60, Q70, and certain Q50 models.
Other key points from RFA’s analysis include:
- The Detroit Three (Chrysler, General Motors and Ford), which collectively represent 44% of U.S. market share, all continue to clearly allow E15 in their vehicles. GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined the following year and Chrysler began E15 approval with its MY 2016 vehicles.
- Other large automakers explicitly offering E15 approval for MY 2018 vehicles include Toyota, Honda, and Hyundai/Kia. Altogether, auto manufacturers with 89.4 percent of 2017 U.S. market share now approve the use of E15 in their MY 2018 vehicles.
- Subaru, Daimler (maker of Mercedes-Benz), and Mazda remain the largest vehicle manufacturers that still exclude E15 from owner’s manual fuel recommendations and warranty statements, together representing about 7.5 percent of U.S. market share. It should be noted, however, that Mercedes-Benz offers three of its most popular models as flex fuel vehicles (FFVs) capable of operating on up to 85 percent ethanol.
- With 1.7 percent of the U.S. market, BMW also continues to exclude E15 from its fuel recommendations. However, BMW Group’s Mini vehicles again allow the use of up to 25 percent ethanol blends.
In 2012, EPA approved the use of E15 in vehicles built in MY 2001 or later. However, auto manufacturers did not retroactively endorse the use of E15 in legacy vehicles that were already on the road. Since 2012, however, the number of major automakers approving the use of E15 has grown from one (General Motors) to 10.
RFA estimates that approximately 34 percent of the estimated 235 million cars, trucks, and SUVs on the road today are clearly approved by the automaker to use E15 (including FFVs). Meanwhile, more than 90 percent of vehicles on the road were built in 2001 or later, meaning they are legally approved by EPA to use E15.
“Automaker acceptance and approval of E15 continues to expand rapidly, and almost all new 2018 vehicles carry the manufacturers’ explicit allowance to use this lower-cost, cleaner-burning, higher octane fuel,” said RFA President and CEO Bob Dinneen. “This analysis should put to rest any myths still being propagated by the American Petroleum Institute and its cronies that automakers don’t allow or warranty the use of E15. We applaud Nissan for joining the ‘E15 Club’ with its model year 2018 vehicles, and we will continue to work with the few remaining automakers who haven’t yet included E15 in their fuel approvals. We’re thrilled to see Mini continuing to blaze the trail toward greater consumer choice. By allowing the use of optimal high-octane fuel blends like E25 in conventional autos, Mini continues to set the pace.
“The oil company explanation for their failure to invest in infrastructure allowing E15 has been there isn’t sufficient demand for E15 because it isn’t warrantied. Well, that narrative has been misleading for years, but now it is completely bankrupt. As this analysis shows, 34% of the cars on the road today have full warranty coverage for E15. That compares to only about 10% of vehicles that require a premium fuel. Oil companies have invested in the infrastructure for premium, but why not for E15? The answer is obvious, they want to preserve their monopoly at the pump. But consumers deserve better. Consumers deserve higher octane fuels at lower prices. That’s what E15 provides. It’s time for the oil industry to stop erecting barriers to higher ethanol blends, and start serving the consumer,” Dinneen added.
Recently E15 has been experiencing incredible growth in the marketplace and it is sold today at more than 1000 retail stations in 29 states.
Fuel up with more E15 Facts on RFA’s webpage here and view the new RFA analysis here.
Read the original release: RFA Analysis: Automakers Approve E15 in Nearly 90% of New 2018 Vehicles
November 9, 2017
By Julie Breneman
After 10 years of research, University of Minnesota Duluth’s National Resources Research Institute delivered solid results this fall. As in solid biofuels. By the ton.
And while this is exciting progress, the NRRI is already gearing up for the next steps of biofuel development.
Starting at the bench scale in 2003 and fiddling with mixture after mixture, NRRI is now able to produce solid biofuels that perform at comparable energy values to coal in fossil coal-burning facilities. The biofuel emissions have no heavy metal pollutants and greatly reduced sulfur levels. As an added benefit, the biomass feedstock can be invasive plants, woody and agricultural waste, secondary wood species, and beetle-killed wood resources.
NRRI envisions this to be a supplement to fossil coal that helps reduce harmful coal emissions to meet state and federal mandates while minimizing new capital requirements at existing power and industrial plants.
“What’s really exciting, and what we’ve been working so hard on, is being able to produce this product at a commercially-relevant scale,” said Don Fosnacht, NRRI initiative director for renewable dnergy. “We had to find a way to make it physically robust and water-resistant for easy shipping and handling, and scale it up to 6 tons per day output. It wasn’t easy.”
The United States is moving away from fossil fuels—Oregon is the first state to aim for coal-free power by 2020—but the transition will be slow. NRRI helped to monitor a significant trial of solid biofuel at a Portland electric plant in 2017. They completely replaced the fossil coal with 3,500 tons of biofuel with only minor mechanical changes. This trial demonstrated that this similar biofuel provides roughly 2,500 Btu per pound increase over typical output for Powder River Basin coals.
The biofuel can be made with two processes: torrefaction (a dry roasting method) or hydrothermal carbonization (a pressure cooking method). NRRI’s large scale rotary kiln is best for roasting wood chips to make solid fuels. The second reactor is like a large pressure cooker that can take other plant biomass (milfoil, invasive cattails and agricultural waste) to make an “energy mud” that is formed into solid fuels.
“If you think about how Mother Nature made fossil coal, it’s time, pressure and heat,” explained NRRI Engineer Tim Hagen. “We’re doing those same processes, but instead of millions of years, we’re doing it in a few hours. And because minerals don’t get into the mix, we don’t have those potential pollutants.”
And while this is exciting progress, NRRI is already gearing up for the next steps of biofuel development. Using a high pressure gasification process on the solid fuels, they hope to demonstrate the conversion of the solid biofuel into a synthetic natural gas (sometimes called “syngas”). Other products would be high value chemicals, liquid fuels and activated carbon.
White wood pellets have made it to market as a coal alternative and they’re a large U.S. export to Europe. But unlike NRRI’s solid biofuel, white wood pellets require major infrastructure changes at the power plant including massive warehouses, and they easily break down during transport and exposure to weather.
NRRI’s renewable energy research was funded by a grant from Xcel Energy, Minnesota Next Generation Energy Board/MN Dept. of Agriculture, Minnesota Power, Heetway, K.R.Komarek, Inc. and the Consortium for Advanced Wood to Energy Solutions.
Read the original article: NRRI Develops Solid Biofuel to Offset Coal
November 8, 2017
By the Renewable Fuels Association
Consumers have been saving money thanks to ethanol for years, but never as much as today. Nearly every consumer that chooses ethanol at the pump is saving money, whether using regular unleaded with 10% ethanol (E10), mid-grade with 15% ethanol (E15), or any one of the many flex fuel options like E85.
According to crowd-sourced data from the Renewable Fuels Association’s E85prices.com, the national price spread between regular unleaded and E85 has never been greater in the 17 years of tracking on the website. That price differential is currently at 33% for the month of November, or more than 8 percentage points higher than any other month in recorded history on the website. In many locations today—including California, Ohio, Iowa, Kentucky, Indiana and Illinois–E85 is at least $1 per gallon cheaper than E10. On average nationwide, flex fuel vehicle drivers who fill up with 20 gallons of E85 are saving $14 per tank over drivers who fill up with E10. Even when ethanol’s lower energy density is factored in, E85 costs less than E10 per mile driven.
The advantageous price scenario is due to the widening price spread between ethanol and gasoline, but also the strong value of Renewable Identification Numbers (RINs) credits. In recent weeks, wholesale ethanol prices have been 15-20% below wholesale gasoline prices—the largest discount in more than two years.
Fuel blenders are further discounting the price of ethanol blends by passing along the value of RIN credits to retailers and consumers. Blenders capture the RIN credit when they blend ethanol with gasoline; they can then sell the RIN credit to other blenders or refiners and share some or all of the profit from that sale with retailers and consumers by marking down the price of the ethanol-blended fuel.
“This once again demonstrates the ability of ethanol to save consumers money, and proves the Renewable Fuel Standard and RINs are working to drive expanded use of cleaner, cheaper renewable fuels,” said RFA Vice President of Industry Relations Robert White. “The combination of various federal, state and industry infrastructure funding initiatives, along with the value of RINs, are allowing fuel retailers the ability to invest in infrastructure, while also passing along savings to the consumer. We are seeing tremendous growth in the availability of higher blends of ethanol at the retail level, and at a price point that will interest anyone looking to save money at the pump,” he added.
Ethanol detractors have claimed that RINs are a tax that negatively impact consumers, but the marketplace is showing otherwise. Those that have chosen to embrace the RFS are helping consumers daily.
“There are always stations that defy logic by charging more for E85 than unleaded, but those stations are becoming a rarity,” said White. “Most retailers are agnostic about what products they offer, as long as they have margin and volume. Right now, higher ethanol blends are offering a significant opportunity for blenders, retailers and consumers alike.”
Read the original article: Consumers Win with Ethanol