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More Ethanol Equals Improved Air Quality and Reduced Oil Dependency

August 29, 2017

A new report from the European Commission highlights several benefits of higher ethanol blends in petrol, including reduced emissions of dangerous pollutants and improvements in car engine performance.

Carried out by the ICF for the European Commission’s Directorate-General for Climate, the study looked at the impact of higher levels of bio-components in transport fuels. It was discovered that increasing the amount of ethanol in petrol blends – for example from 5% to 10% or 20%, would have a positive effect on vehicle emissions and air quality as well as cut reliance on fossil petroleum products.

The research itself was carried out in 2015, but has only recently been published.

Among the report’s findings was the revelation that increased ethanol blends in petrol would result in reduced emissions of nitrogen oxides (NOx), hydrocarbons, (HC), carbon monoxide (CO) and particulate matter (PM). Ethanol blends reduce emissions of HC/CO/PM by 5 to 20% compared to petrol with no ethanol.

Significantly, the study also found that compared to current blending levels, the use of higher ethanol blends will not result in adverse evaporative impact levels in petrol.

Emmanuel Desplechin, secretary general of ePURE, the European renewable ethanol association, has responded to the newly published study, which comes more than six months after the Commission proposed phasing out crop based biofuels after 2020.

“This Commission report once again confirms the many benefits ethanol brings to EU transport, in addition to reducing greenhouse-gas emissions,” said Desplechin.

“Renewable ethanol, sustainably produced in Europe, already helps reduce emissions of GHG and harmful pollutants in petrol across Europe, and blends such as E10 are compatible with today’s vehicles. But with increased blends it could do even more – and help reduce Europe’s dependence on imported fossil fuel.”

“Instead of calling for a phase-out of sustainably produced biofuels like ethanol, the EU should be promoting their use,” Desplechin said.

Read the original article: More Ethanol Equals Improved Air Quality and Reduced Oil Dependency

Cellerate + Enogen Could Meet Cellulosic Ethanol Goal

AgWired

August 28, 2017

By Cindy Zimmerman

If every corn ethanol plant in the country were to convert to Cellerate bolt-on technology combined with Enogen® corn enzyme technology from Syngenta, the country could more than meet the goals for cellulosic biofuels under the Renewable Fuel Standard.

“There’s a one billion to two billion gallon opportunity in the United States without grinding anymore corn,” said Delayne Johnson, CEO of Quad County Corn Processors, which developed the Cellerate technology and has collaborated with Syngenta to license it to other plants.

QCCP is already producing most of the country’s cellulosic ethanol, which last year amounted to about 176 million gallons, lower than the 230 million gallon obligation for 2016 set by EPA under the Renewable Fuel Standard, leading the agency to lower the 2018 requirement to 238 million gallons from the 311 million set for this year. But with cellulosic production finally growing and a greater potential for more, QCCP and Syngenta are among the voices commenting to EPA that now is not the time to lower the standard.

Jeff Oestmann, Head of Enogen for Syngenta, recently testified at the recent public hearing on the EPA’s latest proposed standards under the RFS. “I felt it was important to get in front of the EPA and tell our story on the cellulosic side and what we’ve been able to do with corn kernel fiber,” said Oestmann. “I had three minutes and I actually took six, so I think I got a lot across.”

Both Oestmann and Johnson are submitting comments to the EPA on the proposed rule before the deadline this week of August 31, and they encourage others to do so as well.

Listen to interviews with both from the recent American Coalition for Ethanol (ACE) annual conference here.

Read the original article Cellerate + Enogen Could Meet Cellulosic Ethanol Goal.

Biofuels and Biogas Unite in Call for Cellulosic Targets

Biofuels International

August 23, 2017

Leading US advocates for advanced liquid and gasified biofuels have united to urge the Environmental Protection Agency (EPA) to stand behind President Trump’s commitment to driving investment in the next generation of ‘homegrown’ fuels under the Renewable Fuel Standard (RFS).

Leaders of the American Biogas Council, Advanced Biofuels Business Council, Biotechnology Innovation Organisation , and Coalition for Renewable Natural Gas have co-signed a letter to EPA administrator Scott Pruitt. They call on Pruitt to reverse track on 2018 goals and waiver credits that would suppress demand for cellulosic fuels.

“Over the last decade, the RFS drove a manufacturing boom across America’s heartland during one of the most challenging global recessions in history,” the letter states.

“Advanced and cellulosic biofuels are poised to drive the next American manufacturing wave. However, our ability to achieve success will depend largely on careful administration of the RFS in several key areas”

The letter argues that the RFS needs to continue being administered in a ‘forward looking manner’, and that alternative compliance mechanisms should not be administered in such a way as to undercut interest among obligated parties in securing D3-eligible liquid or gasified fuels.

In the close of the letter, the representatives of the US biofuel and biogas industries note: “The RFS is a proven tool for promoting growth. And notwithstanding volatile global oil prices and RFS policy uncertainty, the United States remains poised to lead the world in the development and commercial deployment of the most innovative fuels in the world. These cutting-edge projects are being developed in many of the same rural areas that produce clean, American-made biofuels today.”

Read their letter here.

Read the original article: Biofuels and Biogas Unite in Call for Cellulosic Targets

USGC: Exports of US Feed Grains In All Forms Setting Records

Ethanol Producer Magazine

August 17, 2017

By U.S. Grains Council

Exports of U.S. feed grains in all forms (GIAF) are up 20 percent year-over-year from September-June to 96.9 million metric tons, according to data from the USDA and analysis by the U.S. Grains Council.

With only two months left in the 2016-‘17 marketing year, exports by this measure that is inclusive of feed grains and the products they produce could set a new record high, a result of attractive U.S. prices and diligent work by the Council to maintain long-time trading partners and find new areas of near-term demand.

U.S. ethanol exports have already reached a new all-time high at 1.15 billion gallons this marketing year, according to data collected by the U.S. Census Bureau, surpassing the 1.09 billion gallons exported in 2011-‘12. Ethanol exports to Brazil more than quadrupled to 438 million gallons, even though purchases are expected to slow in coming months.

Exports of U.S. ethanol to Canada, a key partner through the North American Free Trade Agreement, also increased to 263 million gallons, a 5 percent growth compared to the same time the year prior. And India set a new record for U.S. ethanol purchases, more than doubling year-over-year to 116 million gallons.

Exports of U.S. corn increased 36 percent year-over-year to 49.9 million tons (1.96 billion bushels), already exceeding export totals for the last five marketing years.

U.S. corn exports to Japan, the traditional top customer of U.S. corn, are up 48 percent compared to the same time the year prior to 11.5 million tons (453 million bushels), surpassing last year’s total with two months of sales remaining. U.S. corn sales to several countries have already outpaced historical sales, including a new record set for exports to Saudi Arabia, the highest exports to Taiwan since the 1994/1995 marketing year and the most corn exported to South Korea in the last 10 marketing years.

The Council is also seeing increased demand for U.S. DDGS as a result of price and efforts to promote the product in a diverse set of markets.

Sales of U.S. DDGS dropped significantly from the two largest traditional markets—China and Vietnam. While this void had a substantial impact, it left ample supply for other world buyers to purchase—and USGC programs throughout the world are helping end-users learn how to incorporate U.S. DDGS into their rations. As a result, overall purchases are only just behind last year’s export pace at 9.32 million tons. In contrast, exports to Mexico, this year’s top market, are up 9 percent year-over-year to 1.69 million tons.

Turkey now ranks as the second largest market for U.S. DDGS with exports that nearly doubled year-over-year to 1.11 million tons, the largest amount since the country started purchasing DDGS in 2004-‘05. U.S. DDGS exports to South Korea and the European Union also set new sales records at 847,000 tons and 792,000 tons, respectively.

In contrast, U.S. barley exports are down significantly, driven by a drop in sales to the top traditional customer, Mexico. But, exports to Canada and Japan jumped substantially, both already exceeding their total purchases last marketing year, to 62,700 tons (2.88 million bushels) and 22,900 tons (1.05 million bushels), respectively. In Japan, the Council’s market promotion efforts are building demand for barley food-based products, directly benefitting U.S. producers through this increase in sales. Please note the marketing year for barley differs from that of corn and runs June-May.

Export sales of U.S. sorghum also decreased significantly thus far in the marketing year. However, China kept its status as the largest customer with 3.94 million tons in purchases from September-June. Yet U.S. sorghum exports to Japan more than doubled to 182,000 tons, the highest amount in the last five years, while Mexico increased purchases of U.S. sorghum six percent year-over-year to 524,000 tons.

As the 2016-‘17 marketing year comes to an end, the Council and members are celebrating a strong export year, while at the same time preparing for a challenging 2017-‘18 marketing campaign.

Engagement with both long-standing trading partners and opportunistic buyers combined with attractive prices have allowed U.S. feed grains and coproducts to move into markets old and new. As the current marketing year ends and the new one begins, this work on market access, technical education and trade servicing will become increasingly important to secure U.S. market share and continue the Council’s mission of enabling trade, developing markets and improving lives.

Read the original article: USGC: Exports of US Feed Grains In All Forms Setting Records

EPA Approves Efficient Producer Pathway for Al-Corn Clean Fuel

Ethanol Producer Magazine

August 21, 2017

By Erin Voegele

The U.S. EPA has approved an efficient producer pathway for Al-Corn Clean Fuel, allowing the facility to generate renewable identification numbers (RINs) under the Renewable Fuel Standard for non-grandfathered volumes of ethanol. The plant, located in Claremont, Minnesota, has a nameplate capacity of 50 MMgy.

Ethanol plants that have approved efficient producer pathways are able to generate RINs for production volumes above those grandfathered under current RFS regulations. When the RFS was established in its current form, the rulemaking grandfathered in the production volume of existing corn ethanol plants. To qualify for compliance with the RFS program, any new production above the grandfathered gallons must meet a 20 percent greenhouse gas (GHG) reduction threshold when compared to the program’s gasoline baseline. The efficient producer pathway petition process is designed to aid ethanol plants in gaining pathway approval for expanded production above those grandfathered volumes.

According to documents published by the EPA, the Al-Corn Clean Fuel plant achieves a 22.4 percent GHG reduction when compared to baseline gasoline. A typical natural gas-fired dry mill ethanol plant that produces 100 percent dry distillers grains achieves a 16.8 percent GHG reduction when compared to the gasoline baseline.

Additional information on the Al-Corn Clean Fuel pathway approval is available on the EPA website.

Read the original story: EPA Approves Efficient Producer Pathway for Al-Corn Clean Fuel

New Academic Journal Study: RFS Offers Substantial Benefits To US Economy

Renewable Fuels Association

Aug 18, 2017

WASHINGTON – A new economic modeling study that will soon be published in the American Journal of Agricultural Economics finds that the Renewable Fuel Standard (RFS) has substantially benefited the U.S. economy by lowering gasoline and crude oil prices, cutting crude oil imports, adding value to U.S.-produced agricultural commodities, and reducing U.S. greenhouse gas (GHG) emissions.

“The results confirm that the current RFS program considerably benefits the agriculture sector, but also leads to overall welfare gains for the United States,” according to the study’s authors, Iowa State University economists GianCarlo Moschini, Harvey Lapan, and Hyunseok Kim. “We find that the RFS has indeed proved to be a remarkably effective tool for farm support.”

The analysis found the RFS in 2015 saved the U.S. economy $17.8 billion in gasoline expenses, compared to a case where no RFS existed. That’s equivalent to $142 per American household. Gasoline prices were $0.18 per gallon, or 9.5%, lower because of the RFS. In addition, the RFS is responsible for increased federal tax revenues.

Further, the results highlight the impact of the RFS on domestic energy security, showing that “the RFS leads to a modest contraction in domestic crude oil production, and a larger decline in imports of crude oil.” According to the study, crude oil imports were nearly 200 million barrels lower in 2015 than if the RFS did not exist. Meanwhile, domestic crude oil production was only 0.3% lower in the “2015 RFS” case than in the “no RFS” case.

The RFS program was also found to have boosted the value of the U.S. agriculture sector by $14.1 billion, or nearly $6,800 per American farm. Without the RFS, the model found corn prices would average just $2.75 per bushel in 2015, far below the cost of production. However, with the RFS in place, corn prices averaged $3.68 per bushel—a 34% increase over the “no RFS” case. “The results that we have presented confirm that the current RFS program considerably benefits the agriculture sector,” write the authors.

Meanwhile, even though the authors used overly conservative assumptions about the GHG savings associated with biofuels usage, they found that “…the increased use of biofuels [under the RFS in 2015] does reduce carbon emission in the United States (by about 29 million tCO2e).”

Finally, the study examined the impacts of an “optimal” case where the economic benefits of the RFS are maximized according to the model structure. Under this case, the economists find “…it would be desirable to expand corn-based ethanol production beyond the 15 billion gallon cap envisioned by the EISA legislation.” The model finds that the optimal amount of ethanol blending in the near term is 16.8 billion gallons, equating to a blend rate of nearly 12%. Such a scenario would result in a 14% reduction in gas prices, $28.7 billion in economy-wide savings on gasoline expenses ($228 per U.S. household), additional reductions in crude oil imports, and slight increases in corn production and the value of corn.

“This new study confirms that American families and our nation’s economy significantly benefit from the Renewable Fuel Standard,” said RFA President and CEO Bob Dinneen. “Whether it is lower gas prices, decreased oil imports from hostile nations, a more valuable agriculture sector, or reduced greenhouse gas emissions, this study underscores that the RFS is indeed delivering on its promise and meeting the goals established by Congress when it adopted this seminal energy policy.”

Read the original story here: New Academic Journal Study : RFS Offers Substantial Benefits To US Economy

Research Aims To ‘Co-Optimize’ Biofuels For Future Engines

Agri - Pulse

Aug 2, 2017

Research aimed at finding the right combination of fuels and engine technology that would maximize a car's performance while reducing its greenhouse gas emissions has reached a milestone that ethanol advocates hope gets wider acknowledgement from policy makers.

The Co-Optimization of Fuels & Engines (Co-Optima) initiative is a first-of-its-kind collaborative research and development effort undertaken over the past year by the Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE), its nine national laboratories and industry stakeholders – including national agriculture groups.

The initiative combines previously independent research of biofuels on the one hand and engine combustion technology on the other. By merging the enquiries, scientists are looking to ultimately design new fuels and engines that are co-optimized – designed in tandem to both maximize vehicle performance and reduce environmental impacts.

Last month, Co-Optima researchers completed a year-long assessment of an initial 470 blendstock compounds, and announced eight blendstocks that researchers believe are representative of those with "optimal" fuel properties that can maximize engine performance.

And while DOE declines to see one blendstock more favorably than any of the other seven, the data clearly show ethanol, which is an inherently high-octane fuel, contains many of the benefits researchers are looking for, including commercial and economic viability.

All the blendstock "finalists" are scheduled to undergo continued research that will refine their property measurements, while researchers simultaneously develop improved models for blending them with conventional hydrocarbon blendstocks, including gasoline. The idea is to produce, or, if needed, buy additional amounts of the candidate blendstocks sufficient for testing and to validate engine and fuel economy performance.

However, ethanol is the candidate fuel additive that checks virtually all 23 "feedstock viability" criteria boxes as either "favorable" or "neutral." Ethanol earned "favorable" marks for a diverse range of attributes, ranging from feedstock quality, to cost, to lifecycle greenhouse gases, to political and geographic factors. The remaining seven candidate blendstocks scored far fewer favorable criteria ratings, or recorded a significant number of "unfavorable" ratings.

One of ethanol’s most favorable attributes, which is made evident through the Co-Optima research, is the existing and growing infrastructure that has been built over the past decade to produce and distribute this environmentally beneficial biofuel. Some 97 percent of the nation's automotive fuel supply contains at least 10 percent ethanol, with higher blends such as E15 increasingly being offered at retail stations across the country.

But the identification of fuels designed to work in high-efficiency, low-emission engines, is just one of three integrated areas undertaken by the initiative. Another is the research in engine design that facilitates running more efficiently on affordable, scalable and sustainable fuels. DOE officials cite laboratory engine test results that indicate fuel economy improvements of more than 50 percent are possible for passenger vehicles.

And then, marketplace strategies must be developed that can shape the success of new fuels and vehicle technologies with industry and consumers, DOE officials say of the Co-Optima work.

Reg Modlin, the former director of regulatory affairs at FCA Fiat Chrysler Automobiles and who is now active among stakeholder groups seeking to accelerate the transition of transportation fuels to higher octane/lower carbon blends, says there is urgency behind the Co-Optima work.

"I think most of those involved in this work understand that it keeps our transportation system on the trend-line of meeting greenhouse gas reduction targets set for 2025, then 2030 and in the decades to come," Modlin said, echoing Co-Optima's stated goal: "Better fuels and better engines…sooner," and to introduce improved technologies into the marketplace by 2025.

There is concern among renewable energy advocates over congressional appropriations proposals for fiscal 2018, especially those in the House, that would slash funding for EERE, the national labs and research, though it remains uncertain as to what effect any cuts might have on the Co-Optima funding. Still, efforts are underway to recruit stakeholder groups like the National Corn Growers Association to reach out to lawmakers and call on them to protect the initiative.

A significant window of opportunity to promote Co-Optima and its de facto nod to ethanol as the fuel additive of the future was prompted by President Trump's announcement in March to reopen an Environmental Protection Agency rule finalized by the Obama administration in January setting future fuel economy standards for vehicles.

The rule emanates from EPA's draft Technical Assessment Report (TAR), a 1,200-plus page midterm review issued earlier in 2016 that ultimately contended auto manufacturers were on track in their pursuit of fuel economy standards that average 54.5 mph by 2025 for light-duty cars and trucks. Automakers, however, contested the findings and called on the new administration to reopen the process.

Ethanol groups and others were disappointed the draft TAR did not address and consider fuel quality and octane pathways for meeting the very aggressive GHG and fuel efficiency targets. Citing extensive findings over the past two years from DOE's national laboratories that show major engine-efficiency and emission-reduction benefits can be derived from high-octane, low-carbon (HOLC) fuels, specifically blends of ethanol in the 25-30 percent range, supporters say another shot at the fuel economy standards will allow for greater attention to the Co-Optima findings supporting ethanol.

And while a recent spate of announcements from automakers has driven renewed attention to the electrification of cars and light trucks, Modlin says until such time as electric vehicles dominate the market – and for decades after – liquid fuel will be used in transportation throughout the world.

"What automakers and policy makers must resolve is whether we will reduce carbon emissions from the fleet using more efficient internal combustion engines paired with low-carbon, high-octane fuels, or will we continue to ignore the issue and continue to use current regular gasoline formulations," the former auto industry executive said. "The challenge is to create a resounding drumbeat of 'we need a better fuel for the future,' whether or not electrification becomes successful."

Read the original story here : Research Aims To Co-Optimize Biofuels For Future Engines

Minnesota Biodiesel Standard Will Double Next Year

Rochester Post Bulletin

August 4, 2017

By Ryan Faircloth

Minnesota's biodiesel blend standard will increase from 10 percent to 20 percent next May.

State commissioners announced the change during Minnesota Farmfest in Redwood Falls on Thursday. Supporters say the new standard will help increase the value of farmers' products, create new jobs and improve air quality.

Gov. Mark Dayton originally planned to make the announcement, but canceled his Farmfest trip due to illness.

In 2005, Minnesota was the first state in the country to mandate a 2 percent biodiesel blend (B2) in diesel fuel.

Thursday's announcement makes Minnesota the first in the nation to mandate a B20 standard, Minnesota Agriculture Commissioner Dave Frederickson said.

Homegrown soybeans make up a large portion of the state's biodiesel. Minnesota's biodiesel industry contributes more than $1.7 billion each year to the economy.

The state biodiesel industry adds roughly 63 cents to the market rate of farmer soybean bushels. Frederickson said he hopes the new standard will double that.

"We're excited about the opportunity to give farmers an opportunity to see more income in their pocket, which they definitely need today," he said.

Michael Petefish, Minnesota Soybean Growers Association president, said the increased standard will also bring more jobs to the industry.

"It's estimated 5,400 jobs are involved in the production and use of biodiesel," Petefish said.

According to the American Lung Association in Minnesota, biodiesel use considerably decreases tailpipe emissions. The implementation of B20 next year is expected to cut 1 million tons of carbon dioxide and 130 tons of particulate emissions.

"It's a good move for our health and for our environment as well," said Minnesota Pollution Control Agency Commissioner John Linc Stine.

B20 will be sold at filling stations in Minnesota next summer, before dropping back down to B5 — a 5 percent biodiesel blend — in October for cold-weather reliability.

B20 will be available from April through September each year starting in 2019.

Read the original story: Minnesota Biodiesel Standard Will Double Next Year

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Canada Unseats Brazil as Top Ethanol Export Destination in June

Renewable Fuels Association

August 4, 2017

By Ann Lewis

U.S. ethanol exports totaled 92.7 million gallons (mg) in June, down 22% from May shipments, according to government data released this morning and analyzed by the Renewable fuels Association (RFA). Canada and Brazil were again the top destinations for U.S. exports, combining to receive nearly half of total exports in June, although volumes to both destinations fell sharply from May. Canada took in 24.8 mg in June (down 21% from May), while Brazil imported 20.9 mg (down 68%). Meanwhile, India jumped back into the market for the first time since March, importing 13.6 mg. U.S. ethanol exports to all destinations for the first half of the year stood at 686.8 mg, indicating a record annualized export total of 1.37 billion gallons.

Exports to Brazil hit their lowest point in nine months, equivalent to just 40% of the year-to-date average of 51.0 mg. Still, shipments to Brazil for the first half of the year (276.1 mg) are roughly on par with volumes shipped in the entirety of 2016 (279.1 mg).

Exports of undenatured fuel ethanol hit 44.2 mg in June, down 46% from May. At 17.7 mg, Brazil was the top customer for undenatured fuel product (40% of the total). Jamaica (6.8 mg) and Singapore (4.5 mg) increased their undenatured imports, while India (3.8 mg) and South Korea (3.8 mg) rounded out the top five markets. After averaging 6.2 mg of imports per month over the past 12 months, the Philippines scaled down volumes to just 0.5 mg in June.

Canada was again the top destination for denatured fuel ethanol, taking in 23.9 mg, or 58% of the total. India (9.8 mg), Brazil (3.2 mg), and South Korea (2.1 mg) accounted for the bulk of remaining exports.

Exports of denatured and undenatured ethanol for non-fuel, non-beverage purposes totaled 7.5 mg, with Nigeria (4.1 mg), South Korea (1.9 mg), and Canada (0.9 mg) accounting for the lion’s share (92%).

For the second month this year, the United States recorded fuel ethanol imports. The U.S. brought in 10.6 mg of fuel ethanol in June from Brazil, an 11% increase from May. Imports for the first half of 2017 totaled 20.2 mg–63% (7.8 mg) higher than the same period last year and indicating an annualized total of 40.4 mg.

Turning to distillers dried grains with solubles (DDGS)–the animal feed co-product manufactured by ethanol dry mills–exports increased 20% to 889,114 metric tons (mt) in June. Mexico continued to hold the top spot at 175,433 mt, increasing 30% from the prior month, while South Korea more than doubled its imports of U.S. product to 123,179 mt. Turkey (99,644 mt), Canada (67,756 mt), and Thailand (55,941 mt) were other large markets. Export sales for the first half of 2017 are 5.54 million mt–4% above volumes at this point last year and indicating an annualized total of 11.08 million.

Read the original article: Canada Unseats Brazil as Top Ethanol Export Destination in June

Al-Corn CEO Testifies at EPA Hearing

Rochester Post Bulletin

August 8, 2017

By Hannah Yang

Al-Corn CEO Randall Doyal was among a list of speakers to testify during an Environmental Protection Agency hearing on the use of ethanol and other fuels in the country's gasoline supply.

The Aug. 1 hearing was to collect public input on proposed 2018 Renewable Volume Obligations under Renewable Fuel Standard targets — the minimum amount of renewable fuels blended into the gasoline supply.

While the EPA's proposed 15 billion gallon requirement for ethanol appeared to satisfy ethanol proponents, requirements for biodiesel and advanced cellulosic ethanol have met some opposition.

"I do want to thank EPA for maintaining the 15 billion number for conventional, corn-based ethanol," Doyal's testimony reads. "Don't allow all the negative noise to cloud your thinking like exhaust from autos used to cloud our skies and pollute our air. We have made great strides toward energy security, renewable and cleaner fuels, cleaner air and reduced carbon emissions."

Some conservative groups want to scale back or eliminate the Renewable Fuel Standard. But those in the biofuels industry and Midwestern agriculture interests insist the standards have to be kept, or even increased, citing consumer freedom, energy independence and job creation.

Congress adopted the Renewable Fuel Standard in 2005 and expanded it in 2007. The program requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel. It would create more than 36 billion gallons of blended fuel in 2022.

While the proposed volume obligations would maintain the required volume of conventional ethanol, the volume for advanced biofuels and cellulosic ethanol were reduced, Doyal said.

"With the existing industry on the brink of generating cellulosic ethanol from corn kernel fiber simultaneously with starch-based ethanol, we are going to see significant quantities of new production available," he said. "The EPA's proposed RVO has a chilling effect on those developments."

What's cellulosic ethanol?

Cellulosic ethanol is produced from the stringy fiber of the plant, rather than from its seeds or fruit. It's a biofuel produced from grasses, wood, algae and other plants and is considered to have strong potential as a renewable fuel.

Bob Dinneen, of the Renewable Fuels Association, testified that many ethanol plants are in the process of adding bolt-on fiber conversion technology to their facilities, which could dramatically increase cellulosic ethanol production next year.

"We understand the agency's dilemma in establishing an appropriate RVO for cellulosic ethanol, but we truly believe the agency has erred on the side of pessimism with regard to the potential for significant growth in cellulosic ethanol commercialization," Dinneen said during the hearing.

Al-Corn generates about 50 million gallons of ethanol annually and is in the midst of a significant expansion and modernization of its plant in Claremont. The expansion will improve efficiencies and expand its capacity to create more than 120 million gallons of ethanol per year.

"Our project is moving along well. We can't say enough about the dynamic combination of Karges-Faulconbridge engineering with McGough construction management," Doyal said. "They are pushing our project ahead, and we hope to be operating the expanded capacity by April next year, if not sooner."

Read the originals article: Al-Corn CEO Testifies at EPA Hearing

Will the Biofuels Era Take Off at Sea-Tac?

Crosscut

August 3, 2017

By John Stang

Gov. Jay Inslee’s administration wants Washington to become the nation’s leader in aviation biofuels.

One big aspect of that push would be to have Sea-Tac International Airport become the first American airport to provide significant amounts of biofuels to more than one airliner’s passenger jets. But he also wants to have the state grow the bio-stuff that is transformed into biofuels. And manufacture the biofuels that jet airliners can use.

Besides the environmental benefits of reducing greenhouse gas emissions, the Northwest has the potential for 1,900 biofuel-related jobs in Washington and Oregon, plus another 700 jobs in Montana, said Ralph Cavalieri, who is head of the Richland-based Center of Excellence for Alternative Jet Fuels & Environment.

The science is there. The technology is in the ballpark. The idea of trimming greenhouse gases from jet exhaust has a solid foothold on imaginations in the airline and military worlds. Last November, Alaska Airlines flew its first cross-country jetliner trip from Seattle to Washington, D.C., using wood-based biofuel.

But the big bugaboo is economics.

Who will pay for a potential $1 billion biofuel plant in Washington? How do you convince Northwest farmers that it would be smart to grow crops for biofuels instead of crops for food? How do you get biofuels cheap enough to legitimately compete economically with petroleum-based jet fuels?

“The problem is multi-faceted,” said Brian Bonlender, director of the Washington Department of Commerce at a recent aviation biofuels conference in Seattle.

A 2016 U.S. Department of Energy report concluded that it’s possible for biofuels — derived from plants or wood wastes such as leftover slash of downed trees — to eventually replace 30 percent of the United States’ 2005 petroleum consumption.

Over the next 33 years, the airline industry and the federal government are aiming to cut commercial aviation carbon emissions by roughly half. Currently, jet airliners produce about 2 percent of the Earth’s greenhouse gases, which could increase to 5 percent, said a July report on Sea-Tac’s biofuels potential from the Rocky Mountain Institute’s Carbon War Room and Swedish aviation biofuels supplier SkyNRG.

When biofuel is used, it is blended with regular jet fuel. The Commercial Aviation Alternative Fuels Initiative — a national coalition of airlines, biofuel producers and government agencies, hopes that within three years — it can produce 1.7 percent of the jet fuel used nationally.

So far, only two commercial airports — in Los Angeles and Oslo, Norway — have set up permanent jet biofuel blending operations. In Los Angeles, only United Airlines uses the biofuels, which is supplied by AltAir of Seattle.

AltAir had originally produced biofuel for aviation in Hoquiam but that production moved to what was an unused refinery near Los Angeles. Building a refinery from scratch anywhere close to Sea-Tac would be extremely expensive, perhaps $1 billion to $1.4 billion, according to experts. “We don’t have a mothballed refinery close to the Seattle airport,” said Carol Sim, environmental affairs director at Alaska Airlines.

And this is where all the economic hurdles show up.

In 2015, biofuels were two to three times as expensive as petroleum-based fuels, which is a huge practical factor against using biofuels for jets, said Charlotte Hardenbol, senior business development director for SkyNRG. That is actually a big improvement over just a half-dozen years, but she said, “The airline industry is a very thin-margin industry.”

“The price premium of (aviation biofuels) is expected to continue to decrease, driven by scaling effects and increased conversion efficiencies, eventually nearing price parity with conventional jet fuel,” said the SkyNRG-Carbon War Room report.

Another wrinkle is that biofuels do not have the federal government subsidies and tax breaks enjoyed by the oil industry, according to Peter Moulton, state Commerce’s bioenergy coordinator. “We’ve heavily subsidized the petroleum industry,” Moulton said in a late 2016 interview.

Ross Macfarlane, one of Seattle-based Climate Solutions’ leaders on this topic, contended Washington has another hurdle — the lack of an overall state government policy to boost the production of biofuels within the state. For example, he pointed to Washington not having low-carbon fuel standards, which would encourage research into low-carbon fuels such as biofuels. California, Oregon and British Columbia already have low-carbon fuel standards.

However, if enough byproducts markets are identified from the technology developed to process aviation biofuels, the extra revenue would make biofuel refineries more economical for investors, said Cavalieri, who is also Washington State University’s associate vice president for alternative energy.

The purpose of the report from the SkyNRG-Carbon War Room was to identify ways for Sea-Tac to be able to provide jet fuel that is 1 percent biofuel to all of its jets. The target date for reaching a 1 percent mix is still up in the air, as is any Sea-Tac timetable for achieving a greater percentage of biofuel.

The report noted that taxpayer-supported agencies — such as Sea-Tac’s operator, the Port of Seattle — cannot directly buy biofuels for private airlines. However, the report suggested a number of ways that public agencies could indirectly help private corporations buy, produce and store biofuels. For instance, to support environmental improvements through a biofuels program, a fee could be imposed on parking or vehicles entering the airport, or the airport might lease land or roof space for solar production.

The report noted that the development of local processing of aviation biofuels is a “major hurdle,” but it suggested the port could play a big role in overcoming concerns about the citing of fuel production facilities.

Read the original story: Will the Biofuels Era Take Off at Sea-Tac?

A Better Fuel Mix Can Be 'Made in America'

Des Moines Register

August 3, 2017

By Rick Santorum

Shortly before announcing “Made in America” week, the White House approved new Environmental Protection Agency (EPA) targets for the volume of American-made biofuels that will flow into the nation’s fuel mix next year.

Sen. Chuck Grassley, R-Iowa, probably summed up the collective reaction of most observers when he called the proposal a “mixed bag.”

As promised, President Trump stood by his commitment to rural communities. He rejected the annual call by oil companies to roll back conventional biofuels, often made from U.S. corn, sorghum or other farm crops. The move was greeted warmly across the heartland, where a global crop surplus has pushed down farm incomes for four years running, threatening to stall the entire rural economy.

American ethanol now replaces more than 500 million barrels of imported oil annually and shields drivers from price manipulation by hostile forces within the Organization of the Petroleum Exporting Countries (OPEC). Ethanol also reduces carbon emissions by 43 percent, according to the latest research by the U.S. Department of Agriculture. There’s no shortage of detractors in the petroleum business, but the facts are clear, and homegrown biofuels now supply a full 10 percent of America’s motor fuel, making a major contribution to U.S. energy security.

Unfortunately, those EPA officials who manage non-conventional biofuels seemed to have missed the memo. If finalized, the EPA plan would cut advanced biofuels by 73 million gallons and provide for zero growth in biodiesel.

The loss of 73 million gallons may not seem like much, especially when you consider that we export more than a billion gallons of U.S. ethanol each year. But there’s more to the story. By law, the Renewable Energy Standard (RFS) calls on the EPA to foster growth in domestic bio-energy production. Ignoring that law sends a signal to investors that the U.S. is no longer fertile ground for innovation in renewable fuel.

What the EPA needs to understand is that conventional ethanol and cellulosic ethanol are part of a single, unbroken supply chain that is lifting up rural America. Cellulosic ethanol doesn’t come from a lab in Seattle. It comes from places like Story County, Ia., where Sonny Perdue gave his first major policy speech as Secretary of the U.S. Department of Agriculture. The crowd cheered when he announced that “renewable energy, ethanol, is here to stay and we’re going to work for new technologies to be more efficient.”

Chemically speaking, ethanol is ethanol, whether it’s made from wood chips or corn starch. The cellulosic stuff is just made from cheaper, more abundant plant matter like cobs, stalks, and husks. It’s harder to break down into fuel, but U.S. innovators are already producing commercial volumes.

That’s because first-generation ethanol producers established successful partnerships with farm communities, created efficient supply chains, and invested in the infrastructure to convert agricultural feedstocks into high-value fuel. Some of these companies are now opening new biorefineries, while others are attaching cutting-edge equipment to older facilities that will produce more fuel from every existing harvest. In each case, those making second-generation biofuels possible are the same folks who make first-generation biofuels successful.

With time, there’s no reason all 198 biorefineries across the heartland can’t see similar investments, adding to the hundreds of thousands of jobs supported by biofuel production. Meanwhile, the protein and fat in each kernel is already sent right back into the food chain as low-cost animal feed.

In short, cellulosic ethanol represents the next great American promise of the 11-year-old RFS. Conventional targets have been met. Traditional production will grow, especially if we continue to open foreign markets to U.S. exports. But future growth envisioned under the RFS falls exclusively under the column of advanced biofuels.

These fuels can actually sequester carbon over their full life cycle, significantly reducing emissions, according to the Department of Energy’s (DOE) Argonne National Laboratory. They also supply a fresh revenue stream to rural communities, bringing high-tech jobs into the heartland.

By slashing targets for advanced fuel, the EPA is essentially telling rural America that growth is not an option. That’s not what this administration stands for. President Trump knows that homegrown fuels represent a vital opportunity to create jobs in the heartland while keeping our air clean and promoting U.S. energy dominance. There’s no good reason to hold back that progress. Before finalizing the proposed rule in November, the EPA needs to get on board and tell investors that the U.S. is going to remain a biofuel leader now and well into the future.

RICK SANTORUM is co-chair of Americans for Energy Security and Innovation and a former U.S. Senator from Pennsylvania.

Read the original article: A Better Fuel Mix Can Be 'Made in America'

Govs. Ricketts, Reynolds Testify at EPA Hearing, Urge Greater Federal Support for Advanced Biofuels

Omaha World Herald

August 2, 2017

By Joseph Morton

The Trump administration got an earful Tuesday from critics and supporters of federal rules that mandate the use of ethanol and other fuels in the nation’s gasoline supply.

On one side of the long-running argument are conservative groups, along with the oil and gas industry, pushing for the Renewable Fuel Standard to be significantly dialed back or even eliminated.

Those in the biofuels industry and Midwestern agricultural interests, meanwhile, insist that the standards must be preserved and even ratcheted up in the name of consumer freedom, energy independence and job creation.

“The RFS is critical to supporting our agricultural economy while also reducing our dependence on foreign oil and providing consumers with choices at the pump,” Sen. Joni Ernst, R-Iowa, testified.

The Environmental Protection Agency held Tuesday’s hearing to gather public input on its proposed RFS targets — the minimum level of renewables to be blended into the nation’s gasoline supply — set to be finalized later this year.

Its proposed 15 billion gallon requirement for conventional, typically corn-based ethanol generally satisfied ethanol proponents, but requirements for biodiesel and advanced cellulosic ethanol have been met with dismay in some quarters.

Nebraska Gov. Pete Ricketts and Iowa Gov. Kim Reynolds, representing the nation’s top two ethanol-producing states, joined Ernst in testifying about the benefits of a robust Renewable Fuel Standard.

In particular, they said concerns that biodiesel capacity can’t keep up with higher requirements are unfounded.

“The biofuels industry has proven that when you set the bar high, the industry can make the jump,” Ricketts said.

Opponents testified Tuesday that the renewable fuels being promoted actually harm the environment, are often inefficient and divert agricultural resources away from feeding people and into filling gas tanks.

Ricketts and Reynolds both pushed back on the criticisms.

“Our farmers have demonstrated that you can in fact feed and fuel the world,” Reynolds said.

President Donald Trump’s choice of Scott Pruitt to lead the EPA had sparked concern in the Midwest given the Oklahoman’s oil and gas background.

But speaking to reporters after they testified, both governors praised administration officials for making timely decisions and being accessible. Both were included in an energy roundtable at the White House, for example.

Still, they said they will keep up the fight in support of renewable fuels.

“You have to always be out there advocating for it,” Ricketts said. “You can never take it for granted.”

Beyond the RFS, Ernst praised the work of Sen. Deb Fischer, R-Neb., in pushing legislation that would allow higher ethanol blends such as E15 to be sold year-round. But Ernst acknowledged that the proposal has stalled in committee for the time being.

“We are in a holding pattern right now,” Ernst said. “We are trying to push friends and allies to join us in this effort.”

Ernst said she hopes the administration takes to heart supporters’ statements at Tuesday’s hearing, and she recalled Trump’s backing of ethanol on the campaign trail.

“He stated quite clearly all throughout the campaign that he was supportive of these types of energy sources,” Ernst said. “He made that commitment to Iowa. We need to see him double down on that with the EPA as well.”

Read the original story: Govs. Ricketts, Reynolds Testify at EPA Hearing, Urge Greater Federal Support for Advanced Biofuels

Court Decision Released on Case Against 2015 RFS

Ethanol Producer Magazine

July 28, 2017

By Lisa Gibson

The U.S. Court of Appeals for the District of Columbia Circuit released a decision July 28 addressing the case brought against the U.S. EPA over the 2015 Renewable Fuel Standard Final Rule, which set renewables regulations for 2014 through 2017. The court agreed with the petitioners that the EPA erred in how it interpreted the “inadequate domestic supply” waiver provision.

Petitioners include the Renewable Fuels Association, the American Coalition for Ethanol, Growth Energy, the National Corn Growers Association, the National Farmers Union and the National Sorghum Producers, collectively referred to in the case as Americans for Clean Energy. The case was argued April 24.

Some of the petitioners’ challenges to the RFS contend that EPA set the renewable fuel requirements too high, while others argue EPA set the renewable fuel requirements too low. All but the waiver challenge were rejected by the court.

The court decision states:

“We hold that the ‘inadequate domestic supply’ provision authorizes EPA to consider supply-side factors affecting the volume of renewable fuel that is available to refiners, blenders, and importers to meet the statutory volume requirements. It does not allow EPA to consider the volume of renewable fuel that is available to ultimate consumers or the demand-side constraints that affect the consumption of renewable fuel by consumers. We therefore grant Americans for Clean Energy’s petition for review of the 2015 Final Rule, vacate EPA’s decision to reduce the total renewable fuel volume requirements for 2016 through use of its ‘inadequate domestic supply’ waiver authority, and remand the rule to EPA for further consideration in light of our decision. We otherwise deny the petitions for review.”

Bob Dinneen, RFA president and CEO, said in a July 28 statement, “We are still reviewing the decision, but the fact the court has affirmed our position that EPA abused its general waiver authority by including factors such as demand and infrastructure in a waiver intended to be based solely on available supply is a great victory for consumers and the RFS program.”

Read the original article: Court Decision Released on Case Against 2015 RFS

Minnesota E15 sales Hit Monthly Record

Brownfield Ag News

July 26, 2017

By Mark Dorenkamp

Sales of E15 in Minnesota reached a new monthly record in May.

Minnesota Biofuels Association executive director Tim Rudnicki says additional infrastructure is making gasoline blended with 15 percent ethanol more available.

“So when retailers have the dispensing systems and pump decals noting E15 is available, consumers certainly have access to that.”

He tells Brownfield partnerships between the USDA, Minnesota Department of Agriculture, private funds, and other stakeholders are helping retailers provide higher blends of ethanol.

Rudnicki says the less obvious reason for improving E15 sales is through consumer outreach.

“One of the things the Minnesota Biofuels Association has done for the last several years is to create a variety of programs which go to training staff who are available at retail stations. So they know what products are being offered and how to properly instruct customers who have questions about E15.”

May E15 sales in Minnesota were more than 1.1 million gallons, marking the third straight month above 1 million.

Rudnicki says the pace is expected to taper off through the summer because of Reid Vapor Pressure regulations.

You can listen to the full interview here.

And read the original story: Minnesota E15 sales Hit Monthly Record

U.S. Fuel Ethanol Production Continues to Grow in 2017

U.S. Energy Information Administration

July 21, 2017

Through the first six months of 2017, U.S. weekly ethanol production averaged 1.02 million barrels per day (b/d), an increase of 5% over the same period in 2016. On a weekly basis, U.S. ethanol production set a record of 1.06 million b/d in the week of January 27, 2017, and it has averaged near or above 1 million b/d in every week of 2017 except for a few weeks in April, when ethanol plants typically undergo seasonal maintenance. If ethanol production remains relatively high through the second half of the year, as EIA’s Short-Term Energy Outlook (STEO) expects, 2017 will set a new record for annual fuel ethanol production.

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Corn is the primary feedstock of ethanol in the United States, and large corn harvests have contributed to increased ethanol production in recent years. The U.S. Department of Agriculture estimates that the United States produced a record 15.1 billion bushels of corn in the 2016–17 harvest year, 11% more than the 2015–16 harvest. Increased corn production and relatively stable corn prices have helped make increased ethanol production more profitable and less susceptible to corn price shocks that had affected ethanol profitability and output in the past.

U.S. ethanol plant capacity increased for the fourth consecutive year in 2017, reaching a nameplate capacity of approximately 15.5 billion gallons per year in January. Total ethanol production is expected to reach 1.02 million barrels per day in 2017, a rate equivalent to 15.8 billion gallons. Annual ethanol production is able to exceed capacity for two reasons: new production capacity has likely been added since the January 2017 capacity survey date, and many ethanol plants are able to operate at levels beyond their nameplate production capacity.

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In the United States, ethanol is primarily used as a blending component in the production of motor gasoline and mainly blended in volumes up to 10% ethanol, also known as E10. In recent years, ethanol production increased as a result of higher Renewable Fuel Standard (RFS) targets and growth in domestic motor gasoline consumption, almost all of which is now blended with 10% ethanol by volume. Demand for higher ethanol blends such as E15 and E85 remains limited.

U.S. motor gasoline consumption has grown the past four years, increasing from 8.7 million b/d in 2012 to 9.3 million b/d in 2016, resulting in an increase of 7% in additional ethanol demand by way of E10 blending that has helped to support consistent growth in ethanol production over the same period.

Exports of ethanol have also been increasing. Through the first four months of 2017, U.S. gross ethanol exports have averaged 96,000 barrels per day—40% higher than exports during the same period in 2016—and the highest level on record for that period of the year. In its latest Short-Term Energy Outlook, EIA forecasts that U.S. ethanol net exports will reach nearly 80,000 b/d in 2017, likely surpassing the previous record of 70,000 b/d set in 2011.

Through the first half of 2017, increasing ethanol production rates have outpaced domestic E10 gasoline demand and export growth, leading to elevated ethanol inventory levels at a time when they are typically falling to meet peak driving demand. As of July 14, 2017, weekly ending stocks of ethanol reached 22.1 million barrels, 5% higher than the same time last year and 13% higher than the previous five-year average. Ethanol inventories reached a record level of 23.7 million barrels for the week ending March 31, 2017.

Read the original relase: U.S. Fuel Ethanol Production Continues to Grow in 2017

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