In the News
Aug 14, 2014
By North Dakota Farmers Union
Ethanol production in North Dakota generates significant income for retail agricultural service and supply dealers, roughly $700 million a year, according to a study recently released by the Center for Agricultural Policy and Trade Studies at North Dakota State University.
The study, commissioned by North Dakota Farmers Union (NDFU), directly links 10 percent of all agricultural retail sales to ethanol production.
“Growing corn for ethanol production is not only an important value-added market for farmers, it is a lucrative product for fuel suppliers to retail,” said NDFU President Mark Watne. “Thirteen cents of every sales dollar last year was directly related to ethanol production.”
The study outlined four immediate impacts of ethanol production: increased commodity prices, increased net farm income, increased agricultural inputs, and increased land prices.
According to the study, ethanol production in the U.S. was about 1.6 billion gallons in 2000. A decade later, America produced 12.7 billion gallons of ethanol, consuming nearly 37 percent of the U.S. corn crop. That increased demand raised corn prices from $2 per bushel on average in 2005 to almost $7 in 2012.
“Corn sets the price for all other commodities,” noted Watne. “It’s to our advantage to grow, sell and buy this home-grown renewable fuel.”
To view the study in full, go to AG STUDY
Read the original story here : Study Shows Ethanol Impact On Retail Ag Service Sales
Aug 12, 2014
By Cindy Zimmerman
Concluding the sixth year of sponsorship at the Sturgis Motorcycle Rally and the Buffalo Chip Campground, Robert White with the Renewable Fuels Association (RFA) believes they are making some real headway in getting the true story about ethanol to motorcycle riders.
“The education to the riders is actually taking on a new life,” said White. “We’re seeing riders talking to riders.”
In this edition of the Ethanol Report, White talks about a rider who pulled up for the Free Fuel Happy Hours who said he defended ethanol to his friends at the rally who told him it was a bad for his motorcycle. “He said ‘I kinda came unglued on them’,” he related. The biker told him that he had been talked in to using it at the rally the year before, and he’s “been using it this entire last year without any issue.”
In another case, White said a guy with a brand new Harley said he had been told by the dealer not to use ethanol and he wanted to get a response to that. “And I said why would you believe me?” White said. “I didn’t engineer your motorcycle, I didn’t put the parts together, I’m not providing a warranty for that motorcycle.” The man agreed, noting that neither did the dealership, but his owners manual from Harley in fact said he could use 10% ethanol. “Harley’s been doing this a long time, as have (other motorcycle manufacturers) they know what fuel is going to be most prominent, least expensive, highest octane option for these motorcycles, and it’s going to be ethanol.”
White says they are looking forward to next year, which will be the 75th annual Sturgis Motorcycle Rally, where RFA will having an even bigger presence with an even bigger crowd.
Read the original story here : RFA Making Inroads In Motorcycle Education
Aug 12, 2014
By Ken Anderson
As the 2014 Renewable Fuels Standard (RFS) rule continues to work its way through the interagency review process in Washington, there are now indications that it may not be made public until after the November elections.
During his weekly conference call with ag reporters, Iowa Senator Chuck Grassley was asked what he’s hearing about the RFS.
“I haven’t heard anything definitive on RFS that’s anything official,” Grassley says. “My gut feeling—and I think the gut feeling of many other people—is that it’s not going to come out until after the election.”
Speaking at the recent American Coalition for Ethanol conference in Minneapolis, Paul Machiele, director for fuel programs in EPA’s Assessment and Standards Division, said he couldn’t predict how long the review process will take.
“That review period can take anywhere from 30 to 90 days—sometimes 60 days. I don’t know what they’re going to do with this one,” said Machiele.
Grassley hopes the continued delays portend a more positive outcome for the biofuels industry.
“The only good news that I can see in that is that from where they started last November, until now, maybe the delay of their making a decision would indicate that there might not be as an erratic change in policy as what they originally proposed,” Grassley says.
The EPA’s original proposal cut the corn ethanol fuel requirement from a statutory level of 14.4 billion gallons to just over 13 billion gallons. Biofuels supporters lobbied the agency to reverse that decision and move the number closer to the 14.4 billion gallon figure.
Read the original story here : RFS Announcement May Not Come Until After November Elections
Aug 11, 2014
By Susanne Retka Schill
Corn use for ethanol production is likely to hit 5.1 billion bushels for the current marketing year, based on current estimates of 14.1 billion gallons of ethanol production. University of Illinois ag economist Darrel Good focused on ethanol prospects in his Aug. 11 analysis, the day before the USDA’s August supply/demand report.
“Ethanol use of corn has increased during the 2013-14 marketing year following a sharp decline during the 2012-13 marketing year,” he writes. “The increase has been fueled by a combination of increased domestic consumption of ethanol, increasing exports and declining ethanol imports, and some rebuilding of ethanol stocks. Based on U.S. Energy Information Administration monthly estimates of ethanol production from September 2013 through May 2014 and weekly estimates for June and July 2014, it appears that domestic ethanol production will reach about 14.1 billion gallons during the 2013-14 corn marketing year that ends on August 31. That compares to about 12.8 billion gallons during the 2012-13 corn marketing year and 13.8 billion gallons during the 2011-12 corn marketing year. Ethanol production of 14.1 billion gallons points to corn consumption of about 5.1 billion bushels during the current marketing year.”
A positive trade balance and a modest increase in domestic motor fuel consumption should support ethanol production during the upcoming marketing year, Good writes. “A positive trade balance should be supported by relatively low ethanol prices and relatively high gasoline prices as well as favorably priced U.S. ethanol relative to Brazilian ethanol.”
As for the U.S. EPA’s final rulemaking for the renewable fuels standards, he says, it “is not expected to have much impact on domestic ethanol consumption during the year ahead. The primary impact from the expected reversal of the preliminary write down of the renewable mandate for 2014 would be to incentivize a small increase in consumption of E15 and E85. Domestic ethanol production during the year ahead should be maintained at or slightly above the level of the current marketing year, pointing to corn consumption of 5.15 to 5.2 billion bushels.”
For the complete analysis of other demand sectors, see the complete report “Prospects for Corn Consumption."
Read the original story here : Corn Use For Ethanol Consumption Likely To Top 5 Billion Bushels This Year
Aug 6, 2014
By Beatrice Pupo
US ethanol exports in the first six months of 2014 soared 56% year on year to 1.6 billion liters (416 million gallons), according to US Census Bureau data released Wednesday.
The data includes all ethanol types except for beverage use.
The data shows US ethanol exports totaled 227 million liters in June, up 13% compared with May's total, and 76% above the 129 million liters exported in June 2013.
The majority of the US ethanol exports in June -- 151 million liters -- were classified as denatured ethanol for fuel use, with most, some 125.5 million liters, sent to Canada. The second most popular destination was the United Arab Emirates with 19 million liters.
Exports to the UAE have surged 35% year on year in the first half of 2014 to 137 million liters. Traders expect exports to the UAE to remain strong, and see it as a growing outlet for US ethanol in 2014 and 2015.
US exports of denatured ethanol for fuel use totaled 110 million liters in June 2013.
A vessel carrying 20 million liters was recently reported to have been fixed to leave the US Gulf Coast in mid-August headed for Fujairah, according to information from shipping brokers.
US exports of undenatured ethanol for fuel use jumped from 15.2 million liters in June 2013 to 71.3 million liters in June, with Europe ranking as the top destination at 19.8 million liters -- Spain taking 16.3 million liters and the Netherlands 3.5 million liters.
The volumes taken by Spain are expected to be designated for blending for re-export into North Africa, sources said.
US ethanol exports are expected to remain strong throughout 2014 amid softer US ethanol prices due to tumbling feedstock prices.
Despite a recent drop in production margins, levels remain well above 2013 marks and should support plants continuing to boost output rates.
Estimates from Kingsman, a unit of Platts, show US fuel ethanol exports growing more than 20% compared with 2013, to a total of almost 3 billion liters, in 2014.
Read the original story here : US H1 2014 Ethanol Exports Soar 56% : Census Bureau
Aug 5, 2014
By Katie Fletcher
More than 200 attendees made the trip to the 2014 American Coalition of Ethanol conference in Minneapolis, Minnesota. ACE was founded in 1987 as a grassroots-driven organization, and its members and others in the industry demonstrate their passion by attending the conference year after year, some even attending all 27.
Minnesota Gov. Mark Dayton, was amongst those gathered this year at the welcome reception, giving opening remarks to set the tone for the conference. Dayton mentioned amongst his wishes for the future of the industry to see flex fuel engines from every vehicle manufacturer, so consumers have the option of filling their tanks with E10 or E85 at the pump. “It just makes so much sense,” Dayton said. He also mentioned his wishes for the use of E20, highlighting work done at universities in Minnesota proving its viability.
Ethanol, Dayton told the audience, provides consumer’s lower fuel prices and a cleaner environment. He thanked the crowd for their persistence and perseverance in its longevity. “We have overwhelming bipartisan support for ethanol initiatives in the Minnesota legislature, because we know it’s good for Minnesota and we know it’s good for our country,” Dayton said.
The welcome reception also featured poster presentations from University of Minnesota professors and graduate students for viewing and the opportunity to discuss the scientific research being done in the state to aid in the future of ethanol.
ACE has launched a new campaign with the slogan “Power by People,” emphasizing that it takes a group of people to come together and be part of the movement to shape the future of ethanol. The slogan is reflected in the diverse group of people lined up to speak during the conference—board members, managers, business advisors, engineers, accountants, CEOs, professors, scientists, farmers, producers, brokers and the list goes on. Topics include EPA updates, innovation in the industry, sustainability plans, risk management, enhancing yeast fermentation and FDA’s Food Safety Modernization Act, amongst other topics.
Read the original story here : ACE Conference Kicks Off With Welcome From Gov. Dayton
Aug 4, 2014
By Erin Voegele
The U.S. EPA has released renewable identification number (RIN) data for June, reporting that more than 1.46 billion RINs were generated during the month across all biofuel categories.
For the second consecutive month of 2014, no cellulosic RINs were generated. Overall, 72,754 D3 cellulosic biofuel RINs have been generated so far this year, with 28,586 D3 RINs generated for cellulosic ethanol and 44,168 generated for renewable gasoline. All D3 RINs generated this year were generated by domestic producers.
A total of 11,213 D7 cellulosic diesel RINs have been generated this year, with 8,859 generated for cellulosic diesel and 2,563 generated for cellulosic heating oil. According to the EPA, 8,859 D7 RINs were generated by domestic producers, while 2,563 were generated by importers.
Nearly 17.86 million D5 advanced biofuel RINs were generated in June, bringing the total for the first half of the year to 94.92 million. Most, 65.48 million, have been generated for ethanol, with 14.48 million generated for biogas and 8.32 million generated for naptha. An additional 6.72 million D5 RINs were generated for non-ester renewable diesel. More than 42.51 million D5 RINs were generated domestically, with 52.75 generated by importers.
Nearly 1.21 billion D6 renewable fuel RINs were generated in June, bringing the total for the first six months of the year to more than 7.02 billion. The vast majority, 6.88 billion D5 RINs, were generated for ethanol, with 6.05 million generated for biodiesel. An additional 140.3 million D6 RINs were generated for non-ester renewable diesel. More than 6.88 billion D6 RINs were generated domestically, with 4.58 million generated by importers and 140.3 million generated by foreign entities.
Approximately 237.49 million D4 biomass-based diesel RINs were generated in June, bringing the total for the first half of the year to nearly 1.21 billion. More than 867.52 million D4 RINs were generated for biodiesel, with 342.11 million generated for renewable diesel. More than 949.01 D4 RINs were generated by domestic producers with 62.05 million and 198.57 million generated by importers and foreign entities, respectively.
According to the EPA, approximately 8.33 billion RINs have been generated so far this year, with 206.81 million of those RINs retired. An estimated 334.81 million 2014 RINs are locked and available, with 7.79 million unlocked and available.
Additional RIN data is available on the EPA website.
Read the original story here : EPA Releases June RIN Data
July 31, 2014
By Ayesha Rascoe
The U.S. biofuel industry is urging the Obama administration to go beyond simply raising proposed targets for use of the fuels, making the case instead for fundamental changes to the government's approach to the renewable fuel program.
There has been a flurry of meetings between biofuel backers and White House officials in advance of the release of the long-delayed targets for the use of renewable fuels this year, which are expected to reach the Office of Management and Budget for review within weeks.
The Renewable Fuel Standard requires increasing amounts of biofuels to be blended into gasoline and diesel supplies each year through 2022.
The targets for this year have been plagued by repeated delays amid outcry from biofuel producers, such as Abengoa Bioenergy, Green Plains Inc and Pacific Ethanol Inc, who say a draft plan slashing the 2014 standards could significantly harm the industry.
Biofuel industry sources said in May the Environmental Protection Agency would likely raise proposed levels.
Based on rising gasoline demand, the corn ethanol portion of the mandate is widely expected to be increased to about 13.6 billion gallons (49 billion liters) from 13 billion announced in November.
But the key message biofuel groups have delivered to the administration has been that their industry's future viability hinges on more than just tweaking volume requirements for the current year.
Meeting with senior White House adviser John Podesta last week, the Advanced Biofuels Association pressed the White House to speed up approvals of new fuels that can qualify as advanced and cellulosic fuels, known as pathways.
"We really tried to focus on how important it was to get pathways approved in a more expeditious way so we can actually bring more gallons to market," ABFA President Michael McAdams told Reuters. Seven top executives of companies waiting on approvals also attended the meeting.
More than 35 applications for new biofuel sources are pending at the EPA, with an average wait time of two years. The delays keep fuels off the market because would-be buyers cannot get credit under the biofuel mandate to purchase them.
BETTER CORN ETHANOL EMISSIONS?
While advanced biofuel producers seek the inclusion of new fuels, some corn growers have lobbied to protect the grain's position in the renewable fuel program.
Earlier this month, Congressman Bill Foster, Democrat of Illinois, and a group of lawmakers and scientists from the state met with White House officials including top energy and climate adviser Dan Utech.
They argued the White House should reconsider its estimates of the lifecycle greenhouse gas emissions for corn ethanol as it weighs both the final targets for 2014 and the fuel's role in the administration's broader climate policy.
Corn-based ethanol is currently classified as a "conventional biofuel" that delivers only a 20-percent emissions improvement over gasoline. Some environmental groups have blasted the fuel as not much better than fossil fuels and critics have proposed stripping corn ethanol out of the mandate.
As the Obama administration focuses on its climate legacy, changing the EPA's findings on potential emission reductions from corn ethanol could shore up support in the administration and help fend off future attacks on the fuel.
"The carbon footprint and economics of corn-based ethanol are vastly improved from a decade ago," Foster said, noting less-energy intensive farming practices and more complete use of corn by-products.
The White House asked the scientists for additional information about their research on corn ethanol emissions, said David Beaudreau, a consultant representing the Illinois Corn Growers Association.
"They were intrigued and wanted to know more," Beaudreau told Reuters.
BLOCKING BLEND WALL ARGUMENT
For the Renewable Fuels Association, it is not the final levels for this year so much as the justification behind them that is most concerning.
The group has urged the EPA to not use the shortage of gasoline stations currently able to sell fuel with higher levels of ethanol as a reason to cut biofuel targets, arguing that it would set a precedent that could permanently limit the program's targets.
The EPA has justified lowering the 2014 target as necessary because U.S. fuel markets cannot absorb the amounts of ethanol called for by federal law, a problem known as the "blend wall."
That argument would embolden oil companies to prevent growth in biofuel use simply by not investing in new fuel pumps, said RFA president Bob Dinneen.
"We are going to sell a heck of a lot of ethanol this year no matter what," he said. "If EPA guts the program by turning it over to Exxon Mobil, you will never see that again."
Read the original story here : Biofuel Groups Press White House On More Than Just 2014 Targets
More...
July 28, 2014
Gevo, Inc. today reported an update on the progress of the implementation of the Side-by-Side operational mode (SBS) of its plant in Luverne, MN. In the beginning of June, Gevo commenced the co-production of isobutanol and ethanol, with one fermenter dedicated to isobutanol production and three fermenters dedicated to ethanol production. This follows the company's announcement in May that it had begun production of ethanol. The benefits of simultaneously producing isobutanol and ethanol using the SBS are:
1) it facilitates the process optimization of commercial-scale isobutanol production;
2) it maximizes the utilization of the plant to generate cash by utilizing all the fermentation assets; and
3) it demonstrates the simultaneous production of isobutanol and ethanol, for the benefit of potential licensee partners who are interested in augmenting the fermentation capacities of their ethanol plants to co-produce isobutanol.
"The implementation of the SBS is tracking to our plan and validating the underlying premises for switching to this mode of production. Operating all the assets of the plant has aided us greatly in solving issues that were impeding the ramp-up of isobutanol using one fermenter in isolation, specifically the consistent management of infections and the handling of recycle streams and solids," said Dr. Patrick Gruber, Gevo's CEO.
The following are some of the key results achieved thus far:
Isobutanol
- Successfully produced isobutanol at initial run rates of tens of thousands of gallons per month in a commercial-scale one million liter fermenter (in line with previous guidance);
- Isobutanol yields have reached >90% of target based on starch content, up from approximately 70% prior to running SBS;
- Reduced isobutanol batch cash costs by >25% since beginning SBS, with a clear path towards targeted economic rates;
- Produced and sold IDGs® (animal feed from isobutanol production);
- Achieved 100% recycle streams (up from 90%), while consistently producing sterile mash, controlling infections and growing isobutanol producing yeast;
- GIFT® continues to work as designed (controlling the concentration of isobutanol to desired levels in the fermentation broth, by removing and collecting the isobutanol for further downstream processing); and
- No yeast cross-contamination from the ethanol system.
Ethanol
- Produced ethanol at a run rate of approximately 1.5 million gallons per month (above previous guidance of 1.25 million gallons per month);
- Generating revenue of more than $3 million per month at Luverne; and
- No yeast cross-contamination from the isobutanol system.
"By operating in the SBS we have been able to mitigate the recycle, infection, solids handling and plant operability issues. It is satisfying to see that our yeast and GIFT technology work well at commercial scale. Our yields and costs have improved very quickly. And while we have more work to do, I am pleased with our overall progress and look forward to continuing to increase the production levels of isobutanol at the plant. By running the SBS we have dramatically reduced our cash burn at the plant and we are targeting breakeven at Luverne by year end," continued Dr. Gruber.
"In addition, we are very pleased with the United States District Court's recent decision to stay the patent litigation involving U.S. Patent Nos. 7,851,188 and 7,993,889 that was scheduled to begin on July 21, 2014. This decision should significantly decrease Gevo's legal costs for the foreseeable future. Taken in combination with the improved cash flow profile of the Luverne operations in the SBS, this should dramatically decrease our overall corporate burn going forward."
Read the original press release from Gevo here : Side-by-side Operation Of Luverne Plant On Track
July 28, 2014
By Jerry Hagstrom
WASHINGTON — White House counselor John Podesta told a group of senators July 24 that reduced volumetric requirements for the Renewable Fuel Standard in 2014 are imminent, Sen. Al Franken, D-Minn., said.
Franken said Podesta signaled that the volumetric requirements will be higher than in the Environmental Protection Agency’s initial proposal, but not as high as they would be if EPA followed the volumetric requirements established in the law that is the basis for the RFS.
EPA reduced the requirement for corn-based ethanol after complaints that ethanol use was causing corn prices to rise and higher blends would be required because overall gas use is down.
The agency also reduced the biodiesel and cellulosic biofuel requirements on the basis that industries might not be able to produce enough fuel.
EPA Administrator Gina McCarthy told Agweek she has not established a date to release the volumetric requirements.
“I realize that this particular year is a difficult one,” McCarthy said. “EPA tried to get all the numbers out in the supply system. I think the biofuels industry knows we are working hard, otherwise it wouldn’t take so long.”
The Obama administration, she said, would continue to push the biofuels industry forward.
McCarthy declined to comment on the Podesta meeting because she was not present.
Franken said Podesta came to his office to meet with him and nine other senators, including Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich.
“We made our case that we believe that the levels they set send the wrong signals to the market,” Franken said.
But Franken said he emphasized that EPA’s plan to cut the volumetric requirement for biodiesel to 1.28 billion gallons would be particularly onerous because the industry produced almost 1.8 billion gallons last year.
Franken said the senators told Podesta the administration should retain higher standards because biofuels are domestically produced and create jobs. They also told him the oil industry’s arguments against higher levels of biofuels are wrong and that the oil industry is doing everything in its power to stop gas stations from selling biofuels.
Oil companies have been putting pressure on gas stations not to put in the blender pumps needed to market the fuel, while independents are putting them in, Franken said.
“We can go to E15,” Franken said, adding NASCAR has already proven the fuel works. E15 can be used in all cars made after 2001, he said.
“We think the blend wall is an artificial term,” Franken said, referring to the oil industry’s argument against higher levels of biofuels.
“Oil companies don’t like ethanol, they need it for oxygenation, but any more ethanol is a threat to them, less profits for them. They are doing everything they can to prevent the infrastructure from going into place. It is chicken and egg and an anti-trust thing. Oil companies are telling their gas stations not to put in the blender pumps.”
EPA proposed total renewable fuel at 15.21 billion gallons and cellulosic biofuel standard at 17 million gallons, significantly lower than the original target of 1.75 billion gallons, advanced biofuels at 2.2 billion gallons, and maintaining the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28 billion gallons.
Attending the meeting in addition to Franken and Stabenow were Sens. Heidi Heitkamp, D-N.D., Amy Klobuchar, D-Minn., Tom Harkin, D-Iowa, Patty Murray, D-Wash., Dick Durbin, D-Ill., Maria Cantwell, D-Wash., Sheldon Whitehouse, D-R.I., and Joe Donnelly, D-Ind.
Read the original story here : Senators Push To Maintain RFS
WASHINGTON — White House counselor John Podesta told a group of senators July 24 that reduced volumetric requirements for the Renewable Fuel Standard in 2014 are imminent, Sen. Al Franken, D-Minn., said.
Franken said Podesta signaled that the volumetric requirements will be higher than in the Environmental Protection Agency’s initial proposal, but not as high as they would be if EPA followed the volumetric requirements established in the law that is the basis for the RFS.
EPA reduced the requirement for corn-based ethanol after complaints that ethanol use was causing corn prices to rise and higher blends would be required because overall gas use is down.
The agency also reduced the biodiesel and cellulosic biofuel requirements on the basis that industries might not be able to produce enough fuel.
EPA Administrator Gina McCarthy told Agweek she has not established a date to release the volumetric requirements.
“I realize that this particular year is a difficult one,” McCarthy said. “EPA tried to get all the numbers out in the supply system. I think the biofuels industry knows we are working hard, otherwise it wouldn’t take so long.”
The Obama administration, she said, would continue to push the biofuels industry forward.
McCarthy declined to comment on the Podesta meeting because she was not present.
Franken said Podesta came to his office to meet with him and nine other senators, including Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich.
“We made our case that we believe that the levels they set send the wrong signals to the market,” Franken said.
But Franken said he emphasized that EPA’s plan to cut the volumetric requirement for biodiesel to 1.28 billion gallons would be particularly onerous because the industry produced almost 1.8 billion gallons last year.
Franken said the senators told Podesta the administration should retain higher standards because biofuels are domestically produced and create jobs. They also told him the oil industry’s arguments against higher levels of biofuels are wrong and that the oil industry is doing everything in its power to stop gas stations from selling biofuels.
Oil companies have been putting pressure on gas stations not to put in the blender pumps needed to market the fuel, while independents are putting them in, Franken said.
“We can go to E15,” Franken said, adding NASCAR has already proven the fuel works. E15 can be used in all cars made after 2001, he said.
“We think the blend wall is an artificial term,” Franken said, referring to the oil industry’s argument against higher levels of biofuels.
“Oil companies don’t like ethanol, they need it for oxygenation, but any more ethanol is a threat to them, less profits for them. They are doing everything they can to prevent the infrastructure from going into place. It is chicken and egg and an anti-trust thing. Oil companies are telling their gas stations not to put in the blender pumps.”
EPA proposed total renewable fuel at 15.21 billion gallons and cellulosic biofuel standard at 17 million gallons, significantly lower than the original target of 1.75 billion gallons, advanced biofuels at 2.2 billion gallons, and maintaining the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28 billion gallons.
Attending the meeting in addition to Franken and Stabenow were Sens. Heidi Heitkamp, D-N.D., Amy Klobuchar, D-Minn., Tom Harkin, D-Iowa, Patty Murray, D-Wash., Dick Durbin, D-Ill., Maria Cantwell, D-Wash., Sheldon Whitehouse, D-R.I., and Joe Donnelly, D-Ind.
- See more at: http://www.agweek.com/event/article/id/23743/#sthash.d1rS0b5G.dpufJuly 25, 2014
For more than three years, NASCAR has run on a race fuel blended with 15 percent American Ethanol, Sunoco Green E15. This Sunday at the Brickyard here in Indianapolis, one of the world's most historically significant tracks, NASCAR will reach a fittingly historic milestone -- 6 million miles competitive racing on the bio-fuel.
"NASCAR conducted an exhaustive analysis before making the seamless transition to Sunoco Green E15, a race fuel blended with 15 percent American Ethanol," said Brian France, NASCAR Chairman and CEO. "As we eclipse 6 million tough competition miles across our three national series, we can definitively say this renewable fuel stands up to our rigorous racing conditions while significantly reducing our impact on the environment. We are proud to celebrate this milestone at Indianapolis Motor Speedway along with our partners at the National Corn Growers Association and Growth Energy."
At a ceremony in Indianapolis today, Richard Childress, chairman and CEO of Richard Childress Racing; Tom Buis, CEO at Growth Energy; and Ken Parrent, director of biofuels at Indiana Corn Marketing Council, gathered to recognize the upcoming achievement.
The 6-million mile mark is especially significant because it mirrors the 6 million miles of testing conducted by the U.S. Department of Energy to initially approve E15 for all light duty cars and trucks, model year 2001 and newer. When this milestone is reached, E15 will have been proven as a high performance fuel on both the road and the track. With another 6 million miles of NASCAR real-world racing under its belt, E15 will be definitively established as a reliable, dependable and safe fuel that is environmentally friendly, high performance and a less expensive option for consumers.
"Ethanol-blended fuel is greener, cleaner and homegrown. It reduces our dependence on foreign oil, creates jobs right here at home and helps improve our environment. We want consumers to know that E15 is a safe, high performance and reliable option for them that is less expensive and supports hometown jobs when they fill up at the pump," Buis said. "We are excited to celebrate this milestone of 6 million miles raced on Sunoco Green E15 at NASCAR here in Indiana."
In 2011, NASCAR and American Ethanol partnered to bring E15 to the sport. Since the beginning of the 2011 season, Sunoco Green E15 has fueled every car and every truck in each of NASCAR's national race series. The introduction of Sunoco Green E15 has been a pivotal part of the NASCAR Green initiative, and has successfully increased horsepower and decreased emissions for the sport.
Read the original story here : NASCAR Reaches 6 Million Miles On Sunoco Green
This month, we spotlight U.S. Energy Services, a leading energy management services provider for ethanol producers in the country. Read our interview with Casey Whelan, Vice President of Strategic Initiatives at U.S. Energy, below.
Q. Please tell us about U.S. Energy Services.
A. U.S. Energy Services is a premier energy management company, positioned as a leading expert in analyzing, procuring and managing the energy requirements for large end users. U.S. Energy’s mission is to be our clients’ long-term, preferred energy manager by providing best-in-class energy related services to commercial, industrial, and institutional clients. We create competition between energy suppliers to ensure that our clients pay the lowest possible price. Managing the energy needs of over 3,500 North America sites, our customer list includes half of all the ethanol plants in the United States. U.S. Energy is differentiated by providing unique and specialized services not often offered by competitive energy management companies, such as:
Risk management integrated with physical procurement
Consulting and site development services
Natural Gas and electric portfolio management
LNG, CNG, Ethanol and Biogas services
Sustainability programs
Q. Please tell us about your company's role within the ethanol industry and why the company is committed to supporting the ethanol industry now and in the future?
U.S. Energy has participated in the ethanol and biodiesel space for two decades. We entered the industry in the mid 1990’s working with Heartland Corn, who utilized dry mill technology, and Minnesota Corn Processors, who is a wet mill producer. Since that time, we have worked with more than 100 ethanol plants helping them design and develop energy infrastructure such as natural gas pipelines.
We provide on-going energy management services, mostly in the areas of natural gas and electricity, such as competitive procurement, price risk management, data management, tariff reviews, and infrastructure consulting. We are a committed partner in helping the industry thrive.
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. The ethanol industry produces product which the U.S. needs not only from an energy perspective, but also from an economic perspective. Over the last twenty years, we have visited scores of rural locations where owners have invested in building ethanol plants. These plants have provided significant economic enhancements to the local community.
The ethanol producer’s increased demand for raw product flows directly back to the neighboring residents in the form of higher pricing and more liquid markets for local farmers, lower unemployment and higher labor rates for non-farmers, as well as new restaurants, grocery stores, and other residual businesses surrounding plant activities. Beyond the local community, the benefits of domestically produced ethanol include environmental advantages as well as a reduced dependence on foreign oil.
Q. What do you think is needed for E15 availability to grow?
A. Two important factors are at play in regard to growing E15 usage. First, the EPA must approve all vehicles to utilize E15. This action offers both environmental benefits as well as economic growth for the ethanol industry by providing additional incentive for fuel dealers to provide E15 at the pump. Second, automobile manufacturers must warrant the use of E15 in all vehicles. The threat of a voided warranty de-incentivizes drivers to use E15, and without this component in place, E15 will never reach its full potential.
Q. What do see as the ethanol industry's biggest challenge?
A. The biggest challenge for the industry is continued access to the market. The ethanol industry is trying to push their product into a competitive space occupied by major oil interests. Without federal legislation regarding the use of ethanol in our vehicles, we will limit access to the marketplace leaving environmental and economic barriers in place. If E15 mandates are put in place at a federal level, the Minnesota state legislature would fall in line. Public opinion weighs in as well – negative E15 press in the past has influenced adoption on a broad scale.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. Ethanol is a critical component to the current and future success of the farming industry. The trend lines for corn yield continue to increase – more and more product is available every year. Meanwhile, domestic harvests outweigh food consumption making the ethanol industries demand for corn vital to the United States’ agricultural industry. Every Btu of ethanol produced in the U.S is one less Btu of oil we import from overseas. There is a robust future ahead for the industry as it continues to develop, implement and commercialize advanced biofuels. Progress, however, will be slow.
July 24, 2014
By Ayesha Rascoe
The U.S. ethanol industry pushed back on Wednesday against what they called a "one size fits all" approach to proposed federal rules for shipping fuel by rail, saying regulators must distinguish between the often corn-based biofuel and crude oil.
Their calls follow an unveiling by the U.S. Department of Transportation of proposed safety features for new tank cars transporting fuel, and the phasing out of older cars considered unsafe.
Developed in response to a string of fiery railcar accidents involving crude oil cargoes, the new rules would also apply to shipments of ethanol.
Biofuel groups said treating both fuels the same is a mistake.
"We shouldn't be forced to pay the bill for somebody else's problem," said Monte Shaw, executive director of the Iowa Renewable Fuels Association.
Over the last 18 months, at least a dozen trains carrying crude oil have derailed. Six of those accidents led to spills and major fires, and one caused the death of 47 people in Lac-Megantic, Quebec.
The U.S. ethanol industry has about 29,000 railcars in its service. The average age of its fleet is nine years old, with each car expected to be in service for 40 to 50 years.
Shaw said his group supports additional regulations to strengthen railcar safety, especially measures that would help prevent accidents, but that new rules should take into account the differences between ethanol and crude oil.
Ethanol is less volatile as crude oil, is biodegradable and has a 99.997 percent rail safety record, according to the national Renewable Fuels Association.
"Unlike oil from fracking, ethanol is not a highly volatile feedstock of unknown and differing quality and characteristics being shipped to a refinery for commercial use," said Bob Dinneen, president of the RFA.
The groups acknowledged that rail transport of ethanol does not come without risks.
In 2009, a train carrying ethanol derailed in Cherry Valley, Illinois, and caught fire, killing a person in a car nearby and injuring several others.
After that accident the National Transportation Safety Board in 2012 recommended safety improvements for certain railcars transporting ethanol and crude oil.
Shaw said the government should look at what makes sense for ethanol as opposed to "one size fits all."
Read the original story here : Ethanol Needs Separate Treatment In U.S. Rail Rules - Biofuel Groups
July 22, 2014
By Jim Spencer
Democratic U.S. Sen. Amy Klobuchar of Minnesota has joined with Republican colleague Sen. Charles Grassley of Iowa to push federal investigations of alleged restrictions on the sales of ethanol by the nation's major oil companies.
The senators cited a recent report by the Renewable Fuels Association, a trade group representing the ethanol industry, that claims name-brand oil companies unfairly limit sales of ethanol at service stations selling their products.
Klobuchar and Grassley have written to U.S. Atty. Gen. Eric Holder and Federal Trade Commission Chairwoman Edith Ramirez asking them to investigate a number of charges for possible legal and regulatory violations. The senators have asked for "a substantive evaluation of your conclusions regarding possible anticompetitive behavior by certain oil companies and any proposed solutions or actions the DOJ and FTC will take to resolve this issue."
Among charges leveled by the renewable fuels group at Big Oil:
Brand name service stations can only sell products provided by the oil company.
Sales quotas of branded products discourage the sale of ethanol.
Requirements to store multiple grades of branded gas eliminate the ability to store and sell ethanol.
Oil company demands that ethanol pumps be labeled with "intimidating" warnings about how the fuel can hurt engines.
Forcing dealers to isolate E85 pumps that deliver fuel that is 85 percent ethanol.
Read the original story here : Klobuchar, Grassley Want Probe Of Ethanol Sales Restrictions
See also:
U.S. Senators Press For Probe Of Report That Oil Companies Blocked Ethanol
RFA Scores Retailers For E85, E15 Offerings ; Big Oil Gets An 'F'
RFA Reports Details Big Oil's Tactics In Preventing E85, E15 Sales
July 22, 2014
Ethanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
Click here to read the report "The Economic Competitiveness Of U.S. Ethanol."
To read the original story, go to : New Analysis: U.S. Ethanol Is Lowest Cost Motor Fuel, Octane Source On The Planet
Ethanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
U.S. ethanol isn’t just outcompeting gasoline on price—it is also outperforming ethanol from other key exporting countries, like Brazil. According to the report, “…even with depreciation of the real, U.S. ethanol has been more cost competitive than Brazilian ethanol in key U.S. and world markets over the past several years.” This has particular relevance in the California market, according to the study, because that state’s fuel policies strongly compel fuel suppliers to import Brazilian ethanol in lieu of U.S. ethanol. “Use of Brazilian ethanol in place of U.S. ethanol theoretically raised the price of E10 for California consumers by 8 cents per gallon over the past four years,” the study found.
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
The full report, titled “The Economic Competitiveness of U.S. Ethanol,” is available here.
- See more at: http://www.ethanolrfa.org/news/entry/new-analysis-u.s.-ethanol-is-lowest-cost-motor-fuel-octane-source-on-planet/#sthash.5XLC1VVn.dpufEthanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
U.S. ethanol isn’t just outcompeting gasoline on price—it is also outperforming ethanol from other key exporting countries, like Brazil. According to the report, “…even with depreciation of the real, U.S. ethanol has been more cost competitive than Brazilian ethanol in key U.S. and world markets over the past several years.” This has particular relevance in the California market, according to the study, because that state’s fuel policies strongly compel fuel suppliers to import Brazilian ethanol in lieu of U.S. ethanol. “Use of Brazilian ethanol in place of U.S. ethanol theoretically raised the price of E10 for California consumers by 8 cents per gallon over the past four years,” the study found.
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
The full report, titled “The Economic Competitiveness of U.S. Ethanol,” is available here.
- See more at: http://www.ethanolrfa.org/news/entry/new-analysis-u.s.-ethanol-is-lowest-cost-motor-fuel-octane-source-on-planet/#sthash.5XLC1VVn.dpufJuly 21, 2014
By Bob Dineen
Ethanol will once again take center stage in August as 500,000 motorcyclists from all over the world roll into Sturgis, S.D., to celebrate the 74th annual Sturgis Motorcycle Rally. For the sixth consecutive year, the Renewable Fuels Association is a proud sponsor of the motorcycle rally, leading the way in motorcycle education.
Downtown Sturgis is lined with motorcycles during the rally—often reaching four deep—presenting an opportunity to dispel misinformation that has spread throughout the motorcycle world concerning ethanol use in motorcycles. Bryan O’Neill, a mechanic and member of the Iron Order Motorcycle Club, spoke at the National Ethanol Conference in February to explain the misleading claims. He noted, “Naysayers are erroneously pointing out so-called problems with ethanol, using catchy terms like ‘phase separation’, to cast ethanol in a negative light. … This is the kind of misinformation that is being spread throughout the motorcycle community that is causing distrust in a product that we have been using for years.”
The Sturgis rally offers RFA a unique chance to reach a half million bikers with a message that not only counters the false information, but highlights the cost-saving, high-octane benefits of ethanol. RFA takes this opportunity to point out that motorcycle manufacturers—including Harley-Davidson, Kawasaki and Yamaha—approve the use of E10 in motorcycles, and explain that ethanol saves American drivers an average of $1 per gallon.
One of the many ways RFA promotes ethanol is through the widely-popular “Free Fuel Happy Hours,” offering a free tank of E10 93-octane fuel to riders at the Sturgis Buffalo Chip campground. The promotion amasses lines 100 bikes long and gives our staff an opportunity to answer questions and dispel concerns about ethanol use in motorcycles.
In addition to the “Free Fuel Happy Hours,” RFA maintains a large presence at the Sturgis Buffalo Chip campground. The campground has been the epicenter of the rally since it opened in 1981. Popular names like Florida Georgia Line, Zac Brown Band and ZZ Top grace the main stage where RFA reaches the crowd of more than 100,000 people with a message of “Ride Safe, Fuel Right.”
Last, but certainly not least, RFA gives back to the Sturgis community through sponsorship of the annual “Legends Ride.” The event’s proceeds are donated to local charities, including the Black Hills Special Olympics. All “Legends Ride” participants receive free “Fueled with Pride” giveaways and informational materials on ethanol before they embark on the ride that originates in Deadwood, S.D.
The Sturgis Motorcycle Rally allows RFA to directly and effectively educate motorcycle riders on the cost-saving benefits of ethanol. Low-cost fuel is essential to bikers, because as they like to say, “A good long ride can clear your mind, restore your soul and use up a lot of fuel.”
Read the original story here : Leading The Way In Motorcycle Education