In the News
June 4, 2019
With Formula E dominating motor racing's 'green' credentials, Auto Motor und Sport reports that with its new rules for 2021, Formula 1 wants to start to switch to carbon-neutral fuel.
It is believed F1 is prepared to argue that carbon-neutral fuel is in fact even 'greener' than electric power.
Already, the fuel used in F1 contains a small amount of biofuel, but it is claimed the authorities want this to rise to 20 per cent for 2021.
Then, the number will go up in 10 per cent increments every year.
"Let's put our foot in the door now," an engineer is quoted as saying. "Then the momentum will take over.
"If we do nothing, nothing will happen. Only those who start at 20 per cent will someday get to 100."
It is believed many of the fuel suppliers approve of the carbon-neutral fuel idea, as does Renault boss Cyril Abiteboul.
"There will be new forms of fuel coming up in the next few years, whether you are talking about more biofuel - so a different composition - or even synthetic fuel, coming from non-fossil sources," he said.
Read the original: F1 Eyes Carbon-Neutral Fuel for 2021
May 29, 2019
Press Release
Hydrite Chemical Co., an integrated manufacturer and supplier of chemicals and related services, is pleased to announce the launch of its new Hydri-Maize™ catalyzed bisulfite product line for scrubber applications. Hydrite is proud to introduce an innovative formulation that will decrease plant emissions, decrease energy costs and freshwater consumption, and debottleneck operations for the fuel ethanol industry.
All Hydri-Maize™ catalyzed bisulfite products are made in the USA by Hydrite. These products are used for VOC abatement in CO2 scrubbers which can effectively help VOC reduction goals. Hydrite’s new catalyzed bisulfite product line is designed to help reduce carbon footprint and improve operations.
Scott Cumming, Biofuels Product Manager for Hydrite, commented, “We are excited about the announcement and launch of the new Hydri-Maize™ catalyzed bisulfite product line. Our catalyzed bisulfite line has already taken over 2 billion pounds of fresh water out of ethanol processes across the United States. We look forward to taking out 2 billion more pounds.”
As a company with a strong commitment to sustainability, Hydrite Chemical Co. continues to invest in research, quality control, and training to offer products and systems that reduce water and energy usage and have a minimal impact on the environment.
To learn more, visit our Biofuels page.
Read the original release: Hydrite Launches Innovative Formulation for Ethanol Industry
May 23, 2019
United Airlines today further strengthened its emerging reputation as the world's most environmentally conscious airline by renewing its contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years. The biofuel, which United currently uses to help sustainably power every flight departing its Los Angeles hub, achieves a greater than 60% reduction in greenhouse gas emissions on a lifecycle basis.
United's contract renewal follows the airline's original purchase agreement in 2013, helping United make history in 2016 when it became the first airline in the world to use sustainable aviation biofuel on a continuous basis. United is currently the only U.S. airline to use biofuel in its regular operations. World Energy's biofuel is made from agricultural waste and has received sustainability certification from the Roundtable on Sustainable Biomaterials.
World Energy recently announced that it will invest $350 million to fully convert its Paramount, California, facility to renewable diesel and sustainable aviation jet fuel, bringing its total capacity to more than 300 million gallons of production annually at that location, one of the company's six low-carbon fuel manufacturing plants.
"Investing in sustainable aviation biofuel is one of the most effective measures a commercial airline can take to reduce its impact on the environment," said Scott Kirby, United's president. "As leaders in this space, United and World Energy are setting an example for the industry on how innovators can work together to bring our customers, colleagues and communities toward a more sustainable future."
"Great companies lead," said Gene Gebolys, World Energy's chief executive officer. "We are honored to renew our commitment to United to advance their efforts to drive change to a lower carbon future."
United's contract renewal with World Energy will further assist the airline in achieving its recently announced commitment to reduce its greenhouse gas emissions by 50% by 2050. United's pledge to reduce emissions by 50% relative to 2005 represents the equivalent of removing 4.5 million vehicles from the road, or the total number of cars in New York City and Los Angeles combined. United's biofuel supply agreements represent more than 50% of the commercial aviation industry's total agreements for sustainable aviation biofuel.
Read the original article: United Airlines Expands Commitment to Biofuel, Powering More Flights With More Biofuel Than Any Other U.S. Carrier
May 28, 2019
By Humeyra Pamuk
Democratic presidential hopeful Amy Klobuchar on Saturday called for revamping the Environmental Protection Agency’s (EPA) rules governing how refineries use ethanol in gasoline products, a proposal aimed at the politically critical state of Iowa.
Part of a series of farm policies that also addressed access to capital and bankruptcy assistance, Klobuchar, a U.S. senator, said the EPA’s waivers that allow refineries to avoid the requirements are “misguided” and said financial institutions are manipulating the biofuels credit trading market.
She called for new compliance standards and additional oversight.
Klobuchar is one of more than 20 Democrats vying for her party’s presidential nomination. If she is going to be successful, her campaign needs to galvanize support in the heavily-agriculture state of Iowa, which holds the first primary contest in the nation. Iowa is the country’s leading producer of corn, which is used to produce ethanol.
Klobuchar, who represents Minnesota, another heavily agriculture state which borders Iowa to the north, in the U.S. Senate, has been trailing in polls on the Democratic presidential field.
In a Reuters/Ipsos poll tmsnrt.rs/2LeoO8z earlier this month, she garnered support of only 1% of respondents. Former Vice President Joe Biden led the poll, with 29% of Democrats and independents saying they would vote for him in the state nominating contests that begin next winter.
The Renewable Fuel Standard (RFS) program that mandates ethanol use is a more than decade-old regulation aimed at helping farmers and reducing U.S. dependence on oil. The policy has helped farmers by creating a huge market for ethanol and other biofuels, but oil refiners say compliance is prohibitively expensive.
Under the program, refiners are required to blend biofuels into the nation’s gasoline pool or purchase credits from those that do, but smaller refineries with a capacity of less than 75,000 barrels per day (bpd) can obtain a “hardship waiver” if they prove that compliance with RFS would cause them significant financial strain.
The Trump administration made extensive use of such waivers in the last two years, saving refiners money but angering the corn lobby, particularly after major companies like Exxon Mobil Corp received exemptions for certain facilities.
Ethanol mandates have opened a war between the oil and corn industries. The ethanol industry claims the exemptions have been over-used, threatening demand for corn-based ethanol at a time when farmers are already struggling.
The policy has helped farmers by creating a 15-billion-gallon-a-year market for corn-based ethanol, but oil refiners have increasingly complained about the expense – particularly when prices are high and volatile.
RFS and the small refinery waiver program have increasingly emerged as one of the key policy areas that several Democratic presidential hopefuls have raised.
U.S. Senator Elizabeth Warren earlier this month in a letter to the EPA questioned the agency’s decision to grant a small refinery waiver to an oil refinery owned by billionaire Carl Icahn, who is a former adviser to President Donald Trump. She said waivers undermine the renewable program.
Read the original article: Democratic Presidential Hopeful Klobuchar Proposes Revamping EPA Ethanol Rules
May 23, 2019
Press Release
Representatives Collin C. Peterson (D-MN) and Dusty Johnson (R-SD) and the co-chairs of the Congressional Biofuels Caucus introduced the Renewable Fuel Standard Integrity Act of 2019 which establishes an annual June 1st deadline for refineries to submit small refinery exemption (SRE) petitions from their RFS blending obligations each year and increases transparency in the process.
“It is clear to me that EPA is abusing its authority by recklessly handing out small refinery waivers and refusing to account for them,” said Peterson. “This is hurting farmers and agriculture communities at the worst time. This bill ends the gamesmanship in the waiver process and increases transparency along the way.”
“The EPA has let oil refiners off the hook by circumventing congressional intent, putting ethanol producers at a disadvantage,” said Johnson. “The Renewable Fuel Standard Integrity Act makes sure that moving forward, the EPA’s waiver process will be fair, timely, and transparent.”
Since 2018, EPA granted 54 waivers to refineries for the 2016 and 2017 RFS compliance years totaling 2.61 billion ethanol-equivalent gallons being taken out of the market place. By law, the RFS requires that the EPA make adjustments when determining future biofuels targets to account for waivers to ensure that the overall biofuels targets are not reduced by waivers. However, the agency is not accounting for these waivers and the demand for biofuels is being undercut.
By setting a June 1st petition submission deadline each year, the EPA will have time to account for renewable fuel gallons stripped from the market due to these waivers. The bill also increases transparency in the process by making information with respect to a petition subject to public disclosure.
The bill is supported by Growth Energy, Fuels America, National Corn Growers Association, Renewable Fuels Association, National Biodiesel Board, MN Corn Growers Association and the MN BioFuels Association.
May 21, 2019
By Erin Voegele
The House Biofuels Caucus sent a bipartisan letter to U.S. EPA Administrator Andrew Wheeler May 20 expressing support for year-round sales of E15, calling on the agency to complete its pending E15 rulemaking before June 1, and urging the agency to complete its proposed RIN reforms in a separate rulemaking.
“While we applaud the agency’s effort to finalize the rule before this year’s summer driving season, we ask that the RVP and RIN market provisions be separated into two rules and incorporate the following remarks,” the caucus wrote.
For the Reid vapor pressure (RVP) waiver for E15, the caucus said it agrees “that E15 is substantially similar gasoline to E10 and should be treated as such when granting the [1] pound per square inch (1-psi) waiver on RVP limitations,” and noted the action will ease labeling confusion at the pump and extend market opportunities for U.S. agriculture communities that desperately need it.
“However, we are concerned that EPA’s proposal would create inefficiencies in the marketplace due to unnecessary restrictions on the components that can be used for blending,” the caucus wrote. “If E15 meets all applicable environmental standards, EPA should not restrict what blending components are used to make the fuel.”
Regarding RIN market reform, the caucus said its supports increased transparency in the RIN market to ensure competitiveness and fairness in RIN pricing. “However, provisions in the EPA’s proposed rule will create significant price advantages towards obligated parties that are short on biofuel blending requirements,” the caucus wrote.
“By establishing different compliance periods and RIN retirement requirements for refiners and retailers, the EPA’s current proposal penalizes early actors who are brining biofuels to market and creates a financial advantage for those entities who have been slow to comply with the intent of the law,” the caucus continued in the letter. “Any RIN reforms need to further the objectives of the RFS, which is to blend more biofuels, not undermine them. Action must be taken to ensure that the final rule does not tilt the playing field to the benefit of profitable merchant oil refiners at the expense of farmers, biofuels producers, fuel retailers, and rural communities.”
Growth Energy has spoken out to thank the 20 members of the House Biofuels Caucus for sending the letter. “We are grateful for the continued support of champions on both sides of the aisle who are fighting for a strong rule that will ensure more biofuels reach consumers at the pump,” Emily Skor, CEO of Growth Energy. “The rural economy is at a breaking point, and it’s vital that EPA act by June 1 to uphold the president’s commitment to farm families and allow retailers to keep more homegrown fuel on the market this summer.”
The letter was signed by Reps. Collin Peterson, D-Minn.; Rodney Davis, R-Ill.; Roger Marshall, R-Kan.; Dave Loebsack, D-Iowa; Darin LaHood, R-Ill.; Steve King, R-Iowa; Cheri Bustos, D-Ill.; Mark Pocan, D-Wisc.; Adrian Smith, R-Neb.; Don Bacon, R-Neb.; Dusty Johnson, R-S.D.; Cindy Axne, D-Iowa; Angie Craig, D-Minn.; Steve Watkins, R-Kan.; James Comer, R-Ky.; Abby Finkenauer, D-Iowa; Jeff Fortenberry, R-Neb.; Tom Emmer, R-Minn.; Pete Stauber, R-Minn.; and Sam Graves, R-Mo.
A full copy of the letter can be downloaded here.
Read the original article: House Biofuels Caucus Asks EPA to Split E15, RIN Reform Rule
May 15, 2019
By the Renewable Fuels Association
The Renewable Fuel Standard (RFS) has lowered gas prices by an average of 22 cents per gallon in recent years and saved the typical American household $250 annually, according to a study published today by economist and energy policy expert Dr. Philip K. Verleger, Jr.
The study used an econometric model to estimate the impacts of the RFS, which requires refiners to blend increasing amounts of renewable fuels with gasoline and diesel, on crude oil and gasoline prices over the last four years (2015-2018). Findings reveal that the RFS has provided substantial economic benefits to consumers in the United States and worldwide.
The Renewable Fuel Standard Program: Measuring the Impact on Crude Oil and Gasoline Prices concludes that by expanding fuel supplies by approximately 1 million barrels per day, the RFS reduced the price of crude oil by an average of $6 per barrel from 2015-2018. In turn, gas prices were reduced by an average of 22 cents per gallon, which amounts to a savings of nearly $5 every time consumers fill up. According to the study, the RFS is responsible for putting roughly $90 billion back into the pockets of U.S. consumers over the past four years, increasing discretionary income and raising the nation’s gross domestic product.
The report also found that if ethanol was entirely eliminated from the fuel supply, as some opponents of renewable fuels have advocated, gasoline prices would surge by more than $1 per gallon. According to the study, “Retail prices would today be above $4 per gallon, not $2.90, were renewable supplies removed from the supply mix.”
“If you’ve never heard of the Renewable Fuel Standard before today, this study tells you all you need to know: blending renewable fuels like ethanol into our gasoline supply saves American consumers money every time they fill up their tank,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “As we head into the summer driving season, it’s important for American consumers to recognize that the RFS is keeping prices down at the pump, while at the same time reducing harmful tailpipe pollutants, cutting greenhouse gas emissions, and moving us closer to energy independence.”
Dr. Verleger’s analysis corroborates the findings of earlier studies by economists at Iowa State University, the University of Wisconsin, Louisiana State University, U.S. Department of Energy, Merrill Lynch, and other institutions.
With over forty years’ experience studying and writing about energy markets, Dr. Philip K. Verleger holds a PhD from MIT and has consulted multiple administrations– as Senior Staff Economist on President Ford’s Council of Economic Advisers and, later, as the Director of the Office of Energy Policy at the US Treasury during the Carter administration. Since then, his career in academia and energy consulting has continued to make him a trusted subject expert on the function and structure of energy commodity markets.
You can read more about Dr. Verleger and access the full report here.
Read the original article: New Study: RFS Saves Consumers 22 Cents on Every Gallon of Gas
May 10, 2019
By Erin Voegele
The USDA Foreign Agriculture Service released updated export data on May 9 reporting that the U.S. exported approximately 140 million gallons of ethanol in March, along with 956,828 tons of distillers grains.
The 140 million gallons of ethanol exported in March was up from 113.82 million gallons exported in February, but down when compared to the 215.06 million gallons exported during March 2018.
U.S. ethanol was exported to approximately three dozen countries in March. Brazil was the largest importer of U.S. ethanol in March, with 65.66 million gallons, followed by Canada with 22.66 million gallons and India with 10.34 million gallons.
The 956,828 tons of distillers grains exported in March was up when compared to the 686,005 tons exported in February, and up when compared to the 905,558 tons exported in March 2018.
The U.S. exported distillers grains to approximately 38 countries in March. Turkey was the top importer of U.S. distillers grains for the month, with 162,660 tons, followed by Mexico with 128,712 tons and South Korea with 128,333 tons.
Additional data is available on the USDA FAS website.
Read the original article: USDA: March Ethanol, DDGS Exports Up from Prior Month
More...
By Mallorie Wilken
May 10, 2019
Protein is in high demand worldwide. As the demand increases alongside a growing middle class, meeting it will require greater availability of feed protein products for the meat animals we consume.
Traditionally, one cheap source of protein has been distillers grains used in feeding swine, poultry, and dairy and beef cattle. Research has also shown opportunities in feeding it to fish and other aquatic species. Distillers grains’ versatility has increased its global demand for feeding meat animals.
At the same time protein demand is growing, the ethanol industry is maturing and looking for ways to add multiple revenue streams. Diversification is necessary and crucial for plants to remain profitable in this seasoned market.
Concentrated protein distillers grains will be one of the feed products aiding plants in developing new income streams while continuing to provide feed for animals to fulfill global meat consumption. Because each meat animal species has differing nutritional requirements for optimal performance, formulations incorporate feed commodities in various proportions to meet those requirements. While corn has traditionally been the primary commodity to add energy to a diet for swine, poultry and cattle, soybean meal has often been the supplier of protein because it has a more appropriate amino acid profile to meet dietary needs of swine and poultry than corn does.
More recently, distillers grains have been able to replace most of the protein supplement in cattle diets, but this corn protein isn’t as high in lysine content or as balanced in amino acids as soybean meal, and thus cannot make a similar replacement in swine or poultry diets.
High-protein distillers feed products are capable of supplying a larger amount of protein at a lower inclusion level compared to traditional distillers grains. However, it is still corn protein and the ratio of lysine to leucine remains 3:1, compared to 1:1 in soybean meal, which needs to be taken into account. High-protein distillers grains have the potential to replace portions of soybean meal to make the diet more cost effective to the producer while maintaining performance. Further research is being conducted to help us better understand the optimal levels of inclusion of the feed product in each species.
It is important to note that, while valuable, protein is not the only component in distillers grains that offers feeding advantages when added to animal diets. Fiber, fat and other intrinsic properties are additional factors. The bran or fiber portion of corn has roughly 20 percent protein content (dry matter basis). This protein is incredibly valuable in cattle diets as the microbial environment in the rumen is able to digest and utilize this fiber for energy and growth, unlike that of swine and poultry. Cattle producers will often note intake and health benefits of diets containing distillers grains compared to those without the product. Cattle will have more consistent consumption rates and, therefore, less digestive issues. The ability to separate the fiber and protein streams has the potential of directing the feed products to more species-specific commodities and increasing revenue for the plant itself.
When high-protein distillers grains and corn fiber, mixed with condensed distillers solubles such as ICM’s new feed, Fiber&Syrup (FS), are compared to traditional wet or dry distillers grains plus solubles (WDGS or DDGS) in beef cattle diets, animals observed statistically similar performance (see Table 1). Cattle consuming diets with ethanol feed products at 40 percent inclusion (dry matter basis) had similar to greater performance than those fed corn-only diets.
Since the ethanol feed products were fed at levels exceeding the required amount of protein, the cattle were able to utilize the feed as an energy source. This also illustrates that as long as protein requirements are met, cattle will “waste” the protein supplied by ethanol feed products as energy, as shown in Table 1 by the equivalent performance of cattle fed high-protein distillers grains (37 percent crude protein) and FS (32 percent crude protein). If cattle are able to perform similarly with enough but less protein in the diet, we should feed FS in the feed yards and utilize the more concentrated, higher protein products in species like swine and poultry where protein is valuable and expensive.
Fish is a protein source with increasing demand globally for human consumption. This demand shift is providing opportunities for farming fish. High-protein distillers grains have provided increased performance in tilapia when added to diets at either 15 percent or 25 percent inclusion (dry matter basis), as shown in Table 2. Tilapia fed ICM’s high-protein distillers grains at 15 percent or 20 percent observed significantly increased weight yield (0.28 percent and 0.29 percent respectively) compared to those fed a traditional control diet of 0.26 percent. These results suggest an opportunity to feed more concentrated protein ethanol feed products.
As feed and animal production grow to meet protein demand, new requirements and U.S. Food and Drug Administration guidelines will require technology and innovation to address the need for consistency, providing new opportunities to boost an ethanol plant’s bottom line. Consistency and verification will drive customer loyalty to purchase the feed and the price at which they choose to buy, especially as distillers grains transition from an ethanol byproduct to a feed commodity in the minds of animal producers.
The optimal balance for ethanol plants today is met by improving the ethanol production system and increasing revenue through diversified feeds that meet the needs of the local and trade markets. Market conditions are forcing ethanol plants to reevaluate their current production methods toward plant flexibility. Plants must be able to create value in all facets of production, including ethanol, corn oil and feed products. This requires plants to adopt process technologies that separate feed streams and allow the plant to recombine, concentrate, or process each feed to meet demands.
Author: Mallorie Wilkens
ICM Ruminant Technical Lead
402.936.1943
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Read the original article: Opportunities in High-Protein Feed
May 7, 2019
By Erin Voegele
A bipartisan group of 35 representatives, led by Reps. Cindy Axne, D-Iowa, and Adrian Smith, R-Neb., sent a letter to U.S. EPA Administrator Andrew Wheeler May 7 urging the agency to stop issuing small refinery exemptions (SREs) to large or unqualified refiners under the Renewable Fuels Standard.
Within the letter, the lawmakers note that the Trump Administration has approved 54 SRE requests to date, and has failed to issue a single denial.
“This unprecedented rate of granting waivers is a betrayal of our rural communities, detrimental to our energy security, and threatens our entire agricultural sector at a time of declining incomes and rising debts for our producers,” the representatives wrote. “EPA must halt this process and reallocate waived gallons as the law intends.”
According to the letter, SREs approved to date have caused a loss of 2.6 billion gallons of renewable fuel blending and almost 1 billion bushels of corn demand.
“Granting exemptions to the RFS increases American dependence on foreign oil,” the letter continues. “By continually waiving the requirements of the RFS for small refineries, the EPA fosters uncertainty about the program creating uncertainty for those interested in investing and developing America’s biofuel industry. Further it disincentivizes refineries from taking the steps necessary to begin to meet the standards set by the RFS and make domestic biofuels available to consumers.”
Growth Energy has spoken out to thank the lawmakers for sending the letter. “At a time when grain markets have reached a 42-year low and there was an $11.8 billion decline in farm income the last quarter, our rural communities are continuing to be punished by the rapid escalation in small refinery exemptions by this administration," said Emily Skor, CEO of Growth Energy. "There is no legal or rational explanation for why EPA has quadrupled the number of secret exemptions to the world's largest oil companies in the past 17 months. We applaud U.S. Reps. Cindy Axne, D-Iowa, and Adrian Smith, R-Neb., and their 33 colleagues calling on EPA to halt unjust granting of SREs and to reallocate the gallons lost to ensure the targets set out under the RFS are met, and put an end to the practice of eliminating markets at a time when growers and producers need them most."
The Renewable Fuels Association has also spoken out to thanks the representatives. “We thank the members of the House who sent this letter, and we join them in calling on EPA to immediately stop excusing highly profitable oil refiners from their legal obligations to blend cleaner, lower-cost renewable fuels like ethanol,” said the RFA in statement. “Further, we strongly agree with this bi-partisan group that EPA must restore the renewable fuel blending requirements that were erased through these clandestine waivers. The refinery exemptions have had devastating impacts on our nation’s farm sector and renewable fuels industry, and the bailouts have resulted in American consumers paying more money at the pump for dirtier fuels. It’s time to stop doing special favors for refiners like Chevron and ExxonMobil at the expense of rural America, which is experiencing the toughest economic times in a generation.”
In addition to Axne and Smith, the letter was signed by Reps. David Scott, D-Ga.; Darin LaHood, R-Ill.; Roger Marshall M.D., R-Kan.; Kelly Armstrong, R-N.D.; Cheri Bustos, D-Ill.; Nanette Diaz Barragán, D-Calif.; Jeff Fortenberry, R-Neb.; Steve King, R-Iowa; David Loebsack, D-Iowa; Jan Schakowsky, D-Ill.; Abby Finkenauer, D-Iowa; Don Bacon, R-Neb.; Lauren Underwood. D-Ill.; Angie Craig, D-Minn.; Rodney Davis. R-Ill.; Dusty Johnson, R-S.D.; Raja Krishnamoorthi, D-Ill,; Emanuel Cleaver, II, D-Mo.; Mark Pocan, D-Wisc.; Jim Hagedorn, R-Minn.; Ron Estes, R-Kan.; Collin C. Peterson, D-Minn.; Michael R. Turner, R-Ohio; Steve Watkins, R-Kan.; Tom O'Halleran, D-Ariz.; Tim Ryan, D-Ohio; Bob Gibbs, R-Ohio; Blaine Luetkemeyer, R-Mo.; Mike Bost, R-Ill.; Ron Kind, D-Wisc.; Robin Kelly, D-Ill.; Bill Foster, D-Ill.; and James R. Baird, R-Ind.
A full copy of the letter is available on the Growth Energy website.
Read the original article: Representatives Urge EPA to Stop Issuing SREs
Senator Says Trump Administration Plan to Abandon Promised Transparency Rewards Oil Companies at Expense of Nation’s Renewable Fuel Producers
May 2, 2019
Press Release
U.S. Senator Tina Smith (D-Minn.) said today the Trump Administration’s plan to go back on its promise to name which U.S. oil refineries are allowed to avoid requirements to blend renewable fuels into the nation’s fuel supply could ultimately contribute to job losses across rural America and strike another blow to the nation’s struggling farm economy.
Sen. Smith, who has been an outspoken advocate to expand the use of renewable fuels, said hiding the identity of refineries that receive special Environmental Protection Agency (EPA) waivers to the nation’s biofuels laws will help big oil companies at the expense of the nation’s renewable industry.
The waivers cut the amount of corn-based ethanol and other renewables that is blended into the nation’s gasoline and diesel supply, reducing demand for agriculture products at a time when farmers have already been hit hard by low farm prices and trade disruptions.
“The EPA promised to increase transparency and publish the names of refineries that get exemptions from our nation’s renewable fuels laws. Now it’s abandoning that promise,” said Sen. Smith.
“The transparency is necessary because last year EPA granted a ‘financial hardship’ waiver to an oil refinery owned by billionaire Carl Icahn, saving him tens of millions of dollars. Such waivers have also gone to refineries owned by profitable oil companies like Exxon-Mobil and Chevron. In 2018, the waivers cut demand for ethanol by more than a billion gallons, according to the Minnesota Biofuels Association. That’s just wrong and it’s hurting Minnesota’s economy.” Sen. Smith said the EPA’s plan to be more transparent was eliminated after the White House and the oil industry pushed to end it.
She said she also remains skeptical of a reported White House-brokered “compromise plan” between the oil industry and corn industry. “I’ll be watching to ensure that any compromise coming out of the Administration does not further hurt Minnesota’s ethanol and renewable fuels industry,” she said.
Read the original article: U.S. Sen. Tina Smith Says EPA Plan to Hide Which Refineries Are Allowed to Stop Blending Renewable Fuels Would Hurt Farmers, Rural Communities
May 1, 2019
Press Release
Hydrite Chemical Co., an integrated manufacturer and supplier of chemicals and related services, is pleased to announce its partnership with Archangel and expand its product offering to include a full-line of antibiotics for the biofuels industry.
Hydrite is proud to add antibiotics to its existing product line which includes antibiotic-free and antimicrobial solutions. Hydrite offers both antibiotic and non-antibiotic antimicrobial technology for fermentation, propagation, and upstream and downstream ethanol processes.
Hydrite’s products and unique formulations serve the ethanol industry in a variety of applications. Hydrite provides fully integrated lab services designed to help solve the toughest formulation issues and provides professional reports detailing the results and solution recommendations.
Scott Cumming, Biofuels Market Manager for Hydrite, commented, “Our partnership with Archangel is a testament to our commitment to offer quality materials and services to our customers. Hydrite and Archangel have built a successful business partnership to now include antibiotics products to better serve the growing needs of new and existing customers in the biofuels industry.”
Allen Ziegler, CEO of Archangel Inc. stated, “The partnership between Hydrite and Archangel forms one of the most comprehensive product portfolios in the biofuel industry, and further extends Hydrite’s technical and onsite service capabilities.”
Hydrite has developed a reputation within the industry for providing the distinct combination of excellence in chemical manufacturing and distribution with the most comprehensive level of technical expertise available. To learn more, visit www.hydrite.com or call 262-792-1450.
About Hydrite Chemical Co.
Hydrite, a family-owned company established in 1929, is one of the largest independent providers of chemicals and related services in the United States. Headquartered in Brookfield, Wisconsin, Hydrite has a network of manufacturing facilities, warehouses, and laboratories located in Illinois, Wisconsin, Iowa, Indiana, California, and Texas with nearly 1,000 employees in 25 states. Hydrite owns and operates a private fleet of over 255 units including tractors, van trailers, tankers, and railcars.
Hydrite offers expertise in chemical distribution and manufacturing, food and dairy sanitation, organic processing, liquid sulfites, foam control, water treatment, and compliance management services.
With over 5,000 items in its product portfolio, Hydrite’s dedicated chemists, engineers, and technical service staff have extensive knowledge and experience to solve the most challenging formulation problems. Hydrite has a strong commitment to quality and customer responsiveness, and offers superior products and innovative solutions.
About Archangel
Archangel Inc. specializes in antimicrobial technology including proprietary antibiotic free, inorganic and antibiotic formulations. With over 25 years’ experience developing and applying antimicrobials, Archangel provides options to customize unique antimicrobial programs tailored to plant needs.
Headquartered in Highlands Ranch, Colorado, Archangel holds numerous antimicrobial and process patents, and through an innovative and comprehensive approach, is rapidly being recognized as the company to turn to for the best bacterial control.
Archangel’s exclusive, patent-pending packaging reduces chemical exposure to plant personnel while preserving the integrity of the product.
Archangel’s complete product line caters to the biofuel, beverage alcohol, aquaculture, and agriculture industries, in addition to its technical and laboratory services to meet the unique and specific needs of its customers.
Read the original press release: Hydrite to Offer Antibiotics Product Line through Partnership with Archangel
April 23, 2019
By Lisa Gibson
The 2019 Ethanol Producer Award winners have been selected. Following a nomination period and voting process that included Ethanol Producer Magazine editorial staff and editorial board members, EPM is proud to announce this year’s winners. They are as follows:
Project of the Year: Flint Hills Resources Fairmont in Fairmont, Nebraska. Flint Hills installed Fluid Quip Process Technologies’ Maximized Stillage Coproduct system.
Collaboration of the Year: Homeland Energy Solutions in Lawler, Iowa, and Lallemand Biofuels & Distilled Spirits. The companies implemented a fermentation project together.
Board of the Year: Heartland Corn Products, Winthrop, Minnesota
Workplace of the Year: Arkalon Ethanol, Liberal, Kansas.
Good Neighbor Award: Marquis Energy-Wisconsin, Necedah, Wisconsin.
Read the original article: 2019 Ethanol Producer Award Winners Announced
April 23, 2019
By James Talent
Over the last few years, biofuel policy has become a major flashpoint of conflict between rural supporters of President Trump and oil lobbyists working in Washington. The last administrator of the Environmental Protection Agency handed out dozens of secret exemptions to big oil companies, allowing them to sidestep long standing renewable energy laws. It is an approach that cut billions of gallons of homegrown ethanol out of the market, destroying a key segment of the rural economy.
As a result, ethanol consumption in the United States fell for the first time in 20 years. Farmers were hit the worst and now carry the highest debt income ratio since the farm bust of the 1980s. Calls to the Farm Aid crisis hotline have doubled. President Trump, who vowed that his administration is protecting ethanol, fired the former EPA chief and appointed Andrew Wheeler to take over, but the damage has yet to be repaired. In fact, it may be getting worse. Wheeler announced more oil industry handouts last month, bringing the total to 2.6 billion gallons over two years, which is enough to eliminate the market for nearly one billion bushels of grain.
Rural Republicans who gave the new EPA administrator the benefit of the doubt are understandably livid. Dozens of ethanol plants across the country have cut production or closed their doors, even as farm communities look to rebuild from recent devastating floods and a demoralizing trade war. Meanwhile, oil refiners like Exxon and Chevron that won the “hardship” exemptions have had multibillion dollar profits.
Democrats are already pouncing on this blunder. Senator Amy Klobuchar, who is running for president, told Iowa caucus goers that “biofuels in the Midwest get screwed” by the EPA exemptions. It is a message winning her new followers among rural voters who overwhelmingly voted for President Trump in 2016. The headlines do not help either. In a Reuters story titled “EPA disregarded biofuel rules to help refineries,” it was revealed that the agency quietly ignored recommendations from the Energy Department, which could find no financial justification for the oil industry handouts.
The truth is that petroleum companies simply worry about losing the battle for market share if consumers get more options at the fuel pump. Biofuel blends reduce emissions and deliver more octane. Moreover, they also cost less, as pure ethanol now trades for about 70 cents less per gallon than unblended gasoline. That is why competition is good for drivers and American energy security. It is also precisely why Congress enacted the renewable fuel standard under President Bush back in 2005.
With all eyes on the Organization of the Petroleum Exporting Countries and gasoline headed toward $4 per gallon in some markets, it is hard to see why any agency would shut out lower cost fuel made in the United States. In response, rural advocates like Senator Joni Ernst have called on the EPA “to reallocate waived gallons and establish a clear procedure” to evaluate future exemptions. However, Wheeler has argued the agency simply has no mechanism that would allow it to restore lost gallons, as exemptions are filed retroactively after regulators determine how much biofuel each refinery is responsible for adding to the national fuel mix.
But there is some hope. Representative Dave Loebsack got to the key point during a recent hearing in the House Energy and Commerce Committee. He questioned Wheeler whether the EPA could decide on exemptions first before setting annual biofuel targets. By shifting from a retroactive approach to forward looking approach, the EPA could ensure the full volume of biofuel required by law actually reaches consumers.
Indeed, Wheeler admitted the EPA “would have the ability to do that.” All it would take is for the agency to account for anticipated exceptions in the annual biofuel targets. It is worth noting that the EPA already does the calculation. It simply just has not been willing to act on it. President Trump has shown he is willing to crack down on insiders at the EPA when they threaten to undermine rural prosperity. This is one of those times. We cannot accept bureaucratic excuses for inaction. Farmers were promised a chance to compete at the fuel pump, and it is time to keep that promise.
James Talent served in Congress as a Republican senator from Missouri and championed the creation of the renewable fuel standard in 2005. He is a chairman of Americans for Energy Security and Innovation and a senior fellow at the American Enterprise Institute and the Bipartisan Policy Center.
Read the original article: Time to Keep the Promises for Farmers to Compete in Energy
April 12, 2019
By
In order to battle the tough Friday afternoon winds, presidential candidate and Minnesota senator Amy Klobuchar donned a lime-green hard hat and thick pea coat as she toured the Lincolnway Energy Plant in Nevada.
But for the presidential hopeful, battling the wind isn’t the issue, it’s battling major oil companies and Environmental Protection Agency (EPA) small-refinery waivers on behalf of ethanol companies.
The waivers grant a small refinery temporary exemption from its annual Renewable Volume Obligations, which determine how many gallons of biofuel refineries will add to the motor fuel mix.
Following her tour of the ethanol plant, Klobuchar held a roundtable discussion with local ethanol plant producers and ethanol experts to hear the concerns and challenges the ethanol industry is facing.
Ethanol producers stated that small-refinery waivers issued by the EPA are “taking three billion gallons of demand or 20 percent of demand from the ethanol industry.”
“I think part of (this discussion) is taking on the oil companies and blatantly talking about it,” Klobuchar said. “Yeah, they have their market, but (ethanol) has their market, too, and they are trying to stomp on us and we need to speak out or we don’t have a chance.”
In terms of policy, Klobuchar said, “replacing the gallons lost” in the industry is important, as well as promoting cellulosic ethanol, ethanol produced from the fiber of a plant as a means to help recoup losses suffered in the past years.
Klobuchar also vouched for protecting and addressing how the waivers affect the Renewable Identification Numbers (RIN) market and the year-round sale of gasoline with up to 15 percent ethanol, also known as E15.
RIN is a serial number assigned to a batch of biofuel that act as credits of compliance or a type of currency of the Renewable Fuel Standard Program.
One of the concerns expressed Friday was that that small refinery exemptions issued by former EPA Administrator Scott Pruitt eroded demand for ethanol in 2018 and created the RIN market for ethanol.
?(One of the things we can do) is the RIN market, and making sure it’s functioning and addressing whatever the problems are,” Klobuchar said. “We know that people are going to mess around with it, and those waivers mess around with it, too.”
In 2018, President Trump directed the Environmental Protection Agency (EPA) to consider reforming the RIN market, and to allow the year-round sale of E15.
However, many at the roundtable said that the EPA small refinery waivers and exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.
“We don’t make a fraction of a cent on RINs,” said Blair Picard, Commercial Manager of Lincolnway Energy. “Our RINs go out the door free with our ethanol,so you could say on one hand, we’re not as concerned with the price of RINs as we are with the price of ethanol and our margin, which both have deteriorated as a direct example of these small refinery exemptions.”
Klobuchar blended the concerns of ethanol producers with the “immediate need” to address climate change and environmental issues.
The senator said she would address climate change on day one by entering the United States back into the international climate change agreement, bringing back the clean power standards adopted under the Obama Administration, and re-implementing gas mileage standards.
“I’m a strong believer that we have to do something about climate change on day one,” Klobuchar said following the roundtable discussion. “Those are rules so they are easier to put (out for a vote), and you may have comment periods, but you can get those done in the first year.”
Klobuchar also shared her visions to get to universal health care through a public health insurance option.
Read the original article: Klobuchar Talks Ethanol Challenges at Nevada Plant
April 12, 2019
By Humeyra Pamuk
The U.S. Environmental Protection Agency on Friday took the first step to revive part of a rule that could, if finalized, reveal the names of oil refineries which applied for exemptions from the nation’s biofuel laws.
The move is seen as a win for the corn industry, which has criticized the waiver program due to its lack of transparency. The EPA only in 2017 first began releasing the number of waiver petitions it has received and granted but the names have been kept confidential so far.
Under the federal Renewable Fuel Standard (RFS) program, refiners are required to blend biofuels into the nation’s gasoline pool, but small operations can apply for exemptions. The Trump administration made extensive use of such waivers in the last two years, saving refiners money but angering the corn lobby, particularly after major companies like Exxon Mobil Corp received exemptions for certain facilities.
The issue is a battlefield between the rival oil and corn industries. The ethanol industry claims the exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.
The oil companies have long complained that speculation in the biofuels credit market has inflated prices and complying with cost them hundreds of millions of dollars - one of a long list of complaints by the industry about U.S. biofuel policy.
On Friday, the EPA signed a Federal Register notice saying it is reopening the comment period for a provision in a rule related to the small refinery exemption program that was first introduced in 2016.
That provision from 2016 proposed to establish a determination that basic information related to EPA actions on petitions for RFS small refinery and small refiner exemptions may not be claimed as confidential business information, according to a document on the provision on EPA’s website.
“With respect to each decision on a small refinery/refiner exemption request, we would release to the public the petitioner’s name, the name and location of the facility for which relief was requested, the general nature of the relief requested, the time period for which relief was requested, and the extent to which EPA granted or denied the requested relief,” the document said.
While ethanol groups mostly hailed the move, oil industry representatives were largely critical. Fuelling American Jobs Coalition said the proposal, if finalized, would do more harm than good.
“The data underlying Small Refinery Exemption requests reflects the underlying financial health of facilities in the highly competitive refining sector. Such information can affect access to capital for marginal refineries and can make them attractive targets of acquisition, literally moving markets,” it said in a statement.
To obtain a waiver, refineries with a capacity of less than 75,000 barrels per day (bpd) have to prove that compliance with RFS would cause them significant financial strain. They submit information about the company’s financial health while doing that, although the EPA’s provision does not include revealing that.
EPA Administrator Andrew Wheeler, in an interview with Reuters on Thursday, hinted there could be fewer exemptions under his leadership due to the lower price of biofuel credits that have reduced economic hardship, which is one of the conditions for the exemption.
Read the original article: U.S. EPA Revives Provision That May Name Refiners Applying for Biofuel Waivers