In the News
June 14, 2017
By Spencer Chase
A hearing of the Senate Environment and Public Works Committee left backers of a bill that would expand sale of higher ethanol blends encouraged, but the legislation has an uncertain future.
The hearing examined the Consumer and Fuel Retailer Choice Act (S.517), which would alter the Clean Air Act to allow for the sale of blends of ethanol like E15 to be sold in the summer. Currently, Reid vapor pressure restrictions are only waived for E10, a 10 percent blend that accounts for most of the fuel sold in the U.S.
While the hearing did examine the legislation, it wasn’t a formal markup of the bill. Sen. Chuck Grassley, an Iowa Republican who is one of the bill’s 17 co-sponsors, told reporters yesterday that he hoped to see a markup next week, but Committee Chairman John Barrasso told Agri-Pulse that isn’t going to happen.
“It’s not going to be next week,” the Wyoming Republican said. Asked whether the committee would pursue a markup, he said that a markup of the bill “has been promised” to Sen. Deb Fischer, R-Neb, the bill’s sponsor, but did not mention a timeline.
Speaking to reporters after the hearing, Delaware Democrat Tom Carper, the committee’s ranking member, said he sensed a “willingness to hold a hearing, not an eagerness to move toward a markup.”
Biofuel industry sources tell Agri-Pulse the current estimate is for a markup sometime before the August recess. But when the bill eventually does move, it may have to overcome opposition from committee leadership.
Barrasso said at the beginning of today’s hearing that he doesn’t support the bill, but said it deserved “a full and fair hearing before this committee.” Additionally, Carper told reporters after the hearing that if his concerns about how the legislation would impact the volatility of the Renewable Identification Number (RIN) market aren’t addressed, then he “could not support the bill as it is.”
A bipartisan contingent of senators, however, threw their weight behind the bill. Besides Fisher, Republicans Mike Rounds of South Dakota, Joni Ernst of Iowa and Democrat Tammy Duckworth of Illinois all spoke favorably of the legislation.
Mike Lorenz is an executive vice president with Sheetz, a retailer that sells E15. He said that after millions of transactions from thousands of customers, “we have not had a single customer complaint or any cases of misfueling.” Todd Teske, the chairman, president, and CEO of Briggs & Stratton, reiterated his concern over misfueling, however, by pointing to damaging impacts that could come about if small engines used fuel blended with more than 10 percent ethanol.
Ethanol skeptics on the committee like Oklahoma Republican Jim Inhofe also spoke against the bill, saying it would be another victory for corn ethanol and the Renewable Fuel Standard. But Brooke Coleman, the executive director of the Advanced Biofuels Business Council, said advanced biofuels like cellulosic ethanol could also benefit from the legislation. He pointed to difficulties some cellulosic projects face in securing funding because of an uncertain demand picture, and he said the bill could shore up confidence among investors.
“This will fundamentally change that conversation,” Coleman said at the hearing. “Basically, you’ll have an ethanol industry that gets to the next level from an innovation standpoint.”
After the hearing, Coleman pointed out that opponents of the legislation will seek to pit cellulosic and other advanced biofuels against conventional corn ethanol, but he said the industry can’t let that happen. He said the same groups of lawmakers that helped pass the RFS in the first place can also play a role in backing S.517 and companion legislation in the House.
“The coalition that built the RFS was a broad, bipartisan, middle of the country, coastal America coalition, and there’s no reason to break that down.”
Read the original story: Senate Hearing Reviews E15 Bill; Path Forward Unclear
June 13, 2017
By Growth Energy
Growth Energy released a new survey showing that U.S. small engine owners are pleased with the performance of their fuel and find it easy to pick the best option, including regular unleaded blends of 10 percent ethanol (E10). Conducted by Quadrant Strategies, the random poll of 500 owners of lawnmowers, snow blowers, leaf blowers, weed whackers, and other small engines also found that nine in 10 respondents considered it important to have options at the pump that include ethanol blends.
“Consumers appreciate having clean, affordable options at the pump, and small engine owners are no exception,” said Emily Skor, CEO of Growth Energy. “Biofuel critics like to claim that competition at the pump leads to confusion, but they obviously haven’t checked with American consumers who report that choice at the pump and small engine performance go hand-in-hand. Not only is picking the right fuel easy and worry-free, nearly every single respondent was satisfied with the performance of their fuel, including those using a standard 10 percent blend.”
According to the survey, 95 percent of owners found it easy to pick the right fuel, 98 percent reported satisfaction with their fuel’s performance, and 90 percent considered it important to have options at the pump, including ethanol blends. The numbers were the same or even higher among only those respondents who reported using standard unleaded gasoline, which contains 10 percent ethanol.
“Ninety-seven percent of all fuel sold in the U.S. contains 10 percent ethanol, which is a high-performance option for all common outdoor equipment,” said Donn Larson, President and CEO of Larson Sales, Inc., one of America’s premier outdoor power equipment distributors, with a network of hundreds of dealers, covering a large part of the north central United States. “Ethanol provides a non-toxic octane boost to fuel, and owners report that picking the right blend is as simple as reading the label on every pump. It also reduces the need for freeze-preventing additives, which is great for snow blowers.
The survey also questioned small engine owners about how ethanol’s benefits impact their views of the homegrown fuel. 78 percent appreciated that ethanol replaces dangerous chemicals in gasoline like MTBE, 85 percent were pleased to learn that all major small engine manufacturers warranty their engines for 10 percent blends, and 88 percent valued that ethanol reduces America’s dependence on foreign oil. The same share, 88 percent, reacted positively to ethanol’s air quality benefits and the fact that it cuts carbon emissions by 43 percent.
Read the original release: Poll: Small Engine Owners Power Up on Ethanol Blends
June 7, 2017
By Emily Druckman
More than a decade after the original renewable fuel standard (RFS) was signed into law, tremendous progress has been made toward its goals of energy security, clean air and boosting local economies, according to a new analysis by the Renewable Fuels Association, “RFS Impacts: By the Numbers.” The analysis comes as EPA is expected to soon issue its proposed 2018 renewable volume obligations (RVOs) under the RFS.
Congress adopted the RFS in 2005 and expanded it in 2007. The program requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel, culminating with 36 billion gallons in 2022.
“The data show that by any objective measure, the RFS has been a tremendous success,” according to the analysis, which looks at data on how the world has changed since adoption of the RFS. Specifically, the analysis compares key data points and indicators from 2005 and 2007 to data from 2016.
Among the highlights:
-The number of operational U.S. ethanol plants has grown from 81 in 2005 to 213 in 2016, while ethanol production has grown from 3.9 billion gallons to 15.3 billion gallons, a nearly 300% increase;
-U.S. ethanol industry jobs grew 121 percent from 153,725 in 2005 to 339,176 in 2016, and the value of the industry’s output quadrupled from $8.1 billion to $32.8 billion;
-U.S. corn production has grown from 11.1 billion bushels in 2005 to 15.2 billion gallons in 2016, a 36 percent increase, while average yields grew from 147.9 bushels per acre to 174.6 bushels per acre;
-U.S. petroleum net import dependence has dropped from 60% in 2005 to 25% in 2016, and would have been 33% last year without ethanol;
-The number of retail gasoline stations offering flex fuels like E85 to flexible fuel vehicles (FFVs) grew 728 percent from 2005 to 2016, while the number of FFVs on the road grew 239 percent; and
-Ethanol’s role in cleaning the air has increased, with notable reductions in emissions of both greenhouse gases and criteria pollutants.
Meanwhile, the negative outcomes that opponents of the RFS suggested would occur simply have not materialized:
-Corn acres in 2016 were only 0.5 percent larger than in 2007, while total cropland was down more than 20 million acres (5 percent);
-Corn prices in 2016 were actually 19% lower than in 2007, while the corn surplus was 42% larger;
-Water use for irrigating corn trended lower, while the size of the Gulf hypoxia zone shrunk 14 percent between 2007 and 2016;
-Deforestation in the Amazon fell 58 percent between 2005 and 2016;
-Retail food price inflation was just 0.3 percent in 2016, compared to 2.4 percent in 2005 and 4 percent in 2007;
-Prices for red meat, poultry, fish, cereals and bakery items, and dairy actually experienced price deflation in 2016, compared to modest inflation in 2005 and 2007;
-U.S. milk production in 2016 was 20 percent higher than 2005, while red meat and poultry production was up 12 percent; and
-The U.N. global food price index was just 0.1 percent higher in 2016 than it was in 2007, while the number of people undernourished worldwide was down 16 percent.
“As this analysis clearly shows, the RFS has made a huge impact on consumers, providing them with greater choice at the pump, while cleaning the air and boosting local economies,” said RFA President and CEO Bob Dinneen. “With EPA expected to propose its 2018 RFS obligations in the near future, the agency needs to look no further than this document for what impact this vital program has had on our nation. We look forward to EPA continuing to implement a strong RFS to ensure future growth for our industry and the positive impact it has throughout all sectors of our economy.”
The full analysis is available here.
Read the original press release: RFS Has Been ‘Tremendous Success’ Since Adoption, According to RFA Analysis
June 5, 2017
By Erin Kidd
When Austin Dillon crossed the finish line and made his way to Victory Lane at the Coca-Cola 600, there were smiles from all of his supporters and probably from Dr. Andy Randolph, technical director of ECR Engines.
ECR Engines is a high-performance engine production, research and development company located on the Richard Childress Racing campus in Welcome, North Carolina. The company makes engines for Richard Childress Racing, for which Dillon is a driver.
“If you think of building an engine like making dinner, my role is to define an engine recipe; one that will make good power and have good durability,” Randolph said. “Then, a whole group of people make engines to that recipe. They are all hand-built. It’s like a mini-automotive company.”
Randolph has been part of five NASCAR Cup teams in his career, and recently visited the University of North Carolina at Charlotte to give a presentation on engine performance and ethanol-based biofuel E15, which has been used by NASCAR exclusively since 2011.
During his presentation, he gave some insight into why E15 biofuel is a valuable alternative for high-performance vehicles and everyday cars.
“I really just talked to them about ethanol as a fuel for automotive engines as a whole, going over advantages and disadvantages,” Randolph said. “I enjoy talking to students. They tend to come in unbiased and generate opinions based on facts. They also learn a few things and like to watch things explode.”
Randolph’s research focuses on the combustion properties of alcohol/diesel and alcohol/oil blends and has contributed to five NASCAR championships with three different teams.
He said the key to high-performance road cars is having high-octane fuel, which can be accomplished in many ways. Until about 2006, Randolph said NASCAR teams used leaded fuel.
“Lead has high octane characteristic with very bad blood toxins,” Randolph said. “In the sport, you are handling the fuel and practically drinking it every day. People didn’t want to die from lead poisoning or grow an arm out of their head.”
Eventually teams went to unleaded, but Randolph believes that ethanol is the way to go and the safest.
He told UNCC students that with ethanol, hydrogen burns very clean while gasoline produces more carbon emissions when burned.
“Ethanol burns with a very transparent, blue flame. The ethanol molecule has oxygen in it. To have combustion you need fuel and oxygen. Gasoline doesn’t have any oxygen itself. When you don’t have the perfect ratio of gasoline to air, the flame will get yellow or black,” Randolph said. "With ethanol, there is oxygen in the fuel; therefore the carbon doesn’t have to only get its oxygen out of the air. That allows it to burn much cleaner.”
Randolph also said that ethanol is the least expensive octane booster. And people that choose to fuel their personal vehicles with it, will end up spending less at the pump.
"The first thing skeptics point to is that you tend to have a very small decrease in fuel mileage. The reason is because it takes more volume of fuel to make a given amount of energy,” Randolph said. “The counter argument to that is it’s considerably cheaper. I tend to worry about how much it costs me to drive. I worry more about miles per dollar than miles per gallon.”
E15 is available in 29 states, including North Carolina.
Read the original story: E15 Biofuel in NASCAR and Spreading Across the Country
June 7, 2017
Making a living raising cattle isn't as simple as just buying a herd and turning it out to pasture. Cattle require specific diets to maintain proper nutrition and weight gain. And how to do this in the most effective and efficient way possible has interested both ranchers and researchers for generations.
Scientists in Texas are interested in how seasons affect how well cattle can digest a type of Bermuda grass, Tifton 85. In a recent study, they found that as seasons progress, the grass becomes harder to digest. However, by supplementing with the dried distillers' grains, this effect can be minimized.
Dried distillers' grains are left over after ethanol production. They are what remains of the ground corn used for fermentation.
"Due to the ramp-up in ethanol production over the past few decades, there has been an abundance of this byproduct in the beef industry," explains Monte Rouquette, a professor with Texas A&M AgriLife Research. "Originally viewed as a waste product of the industry, research began looking into other uses of the byproduct."
He adds that using it as food for livestock is an efficient use of this product. The value-added aspect has moved the grains from wasted to wanted.
The dried grains are now commonly used as a relatively cheap source of feed. In some instances, it can replace primary feed ingredients like corn or soybeans. Some supplements provide additional energy, some more protein, and others minerals. The distillers' grain is used for both protein and energy.
How does this fit with the forage season? Tifton 85 Bermuda grass is a common forage grass across the south and southeast United States. However, as the plants mature, they become harder for livestock to digest. The cattle have a harder time extracting nutrients from the grass. The grains can help add back those nutrients.
The results of this study, conducted by W. Brandon Smith as part of his PhD research, point to a potential two-season grazing strategy, based on animal size, weight, and age. For example, lightweight animals could graze in the early summer without the grain supplement because the grass is able to give them the needed nutrients to thrive.
In the later part of the summer, the matured animals could graze with the distillers' grain supplement. The grain would add back some of the nutrients the cattle lose out on when the grass is further into season.
This research allows the scientists to determine the most effective and efficient way to use distillers' grains as a supplement. They can learn how much is best to give, when is best to give it, and how much return it can provide a rancher.
"These data can then be used in an economic assessment to provide a baseline of potential responses from the use of a supplement," says Rouquette. "This work is of interest to us me because it sheds light on changes that occur chemically within the plant across the year that affect its digestibility."
Read the original story: Waste Not, Want Not: Byproduct of Ethanol Industry Makes Suitable Cattle Feed Supplement
June 6, 2017
By
Five Democratic senators asked the Environmental Protection Agency in a letter on Tuesday to hand over documents relating to the role of Carl Icahn, a refining company owner, in shaping biofuels policy at the agency.
Lawmakers have for months raised concerns that Icahn's dual role as a high-powered investor and an adviser to President Donald Trump on regulation could lead to conflicts of interest. Icahn, a billionaire, owns the oil refining company CVR Energy , which is heavily impacted by U.S. policies requiring refiners to blend biofuels into their gasoline and diesel.
The senators - Sheldon Whitehouse, Elizabeth Warren, Debbie Stabenow, Jeff Merkley and Tammy Duckworth - addressed the letter to EPA Administrator Scott Pruitt, requesting that he hand over communications between the EPA and Icahn or representatives of CVR Energy.
They also requested reports, data and briefings exchanged between the agency and Icahn.
"Statements made by him or actions taken by his companies may now be seen as signaling changes in EPA or administration policy which may, in turn, affect the price of CVR stock and the RIN market," the senators wrote in a letter sent to Pruitt on Tuesday.
A RIN, or Renewable Identification Number, is the name given to biofuels blending credits that many refiners are required to purchase under the U.S. biofuels regulation.
In February, Icahn, who is an unpaid adviser to Trump, submitted a proposal to the White House to change the U.S. biofuels program, the Renewable Fuel Standard, in a way that would ease the burden on oil refining companies, including his own.
A Reuters review of corporate filings in April showed that Icahn's company had also taken a large short position on biofuels credits - a bet that prices for biofuels credits would fall - that would have yielded big profits if the White House adopted the proposal.
White House officials have said the EPA is now considering Icahn's proposed overhaul to the biofuels program.
The senators gave Pruitt until June 16 to provide the information. The letter comes after the senators twice asked the White House and Icahn for information about his biofuels dealings but received no response.
Those senators last month sent a letter to the U.S. Commodity Futures Trading Commission, urging that it probe Icahn's activity in the market. The CFTC on Monday informed them and four other senators that it will not investigate the credits because RINS are not traded on futures markets.
Read the original story: U.S. Senators Press EPA for Documents on Icahn's Biofuel Dealings
By Luke Geiver
May 26, 2017
It’s hard to believe that Jeanne McCaherty holds only one title for Guardian Energy Management LLC. The former Cargill executive-turned ethanol company CEO has a master’s degree in biochemistry, has run a fermentation optimization research group, developed and operated a wet-milling research team, started a culture-growing company, overseen a global biotechnology effort and spent time as a private equity consultant. Nearly one year after becoming CEO of Guardian Energy, a unique ethanol joint-venture organization that includes 10 ethanol producers spread throughout Minnesota, North Dakota, Iowa and Nebraska, McCaherty spoke with us about her efforts to inject previous experiences into day-to-day operations, observations on the opportunities for plant and organizational upgrades and why the ethanol industry is unlike any she’s been in before.
Letting the Past Inform the Present
After receiving her master’s degree in biochemistry, McCaherty took a position with Cargill. Her time spent working in labs, leading research and development efforts and running big-name-backed businesses has already proven useful. “All of that tech background I have has been very useful. It is amazing how much I’m putting that to use in our business today,” she says.
One of her early roles at Cargill involved working on continuous improvements for large scale fermentation, including ethanol. She called Eddyville, Iowa, home and her place of work while she was working on fermentation improvements. She has also spent time researching corn wet milling issues related to making corn starch-based products. Upon her return to Minneapolis, McCaherty led a biotechnology research group that focused on multiple areas. A fermentation optimization group studied processes to improve organisms. Another group developed and utilized gene manipulation techniques for organisms involved in fermentation processes. “When I look at what the yeast suppliers are doing today and what the enzyme suppliers are doing today, it is all very relevant to the work I did back then,” she says.
McCaherty has already brought her experiences and insight from the past into the ethanol business. With vendors, she can talk in great detail about the viability and usefulness of product claims. She is also well-versed on the technical side of fermentation, she says.
“I come from a place where everything has a science or engineering answer to it,” she says. “The idea of continuous improvement and bringing scientific rigor is something I pride myself on.”
That approach to the ethanol business has brought some changes to the Janesville, Minnesota, plant owned and operated by Guardian. The team is setting up lab fermenters to test new enzymes and nutrients. “There comes a time when you need to own your own destiny and look at things in detail that maybe aren’t very relative to your vendors,” she says. McCaherty hopes to test how enzymes react to different temperatures, nutrients or additives used at the Guardian facility. Previously, the team depended on vendors to supply the information, or in some cases, was unable to look at products with much detail.
“The industry has been very effective at making improvements to the process and now you are getting to the point where you are at diminishing returns,” she says. “You no longer see a 4 percent increase in yields. You have to go after every 0.2 or 0.5 percent improvement to make more optimization happen.” Such improvements may not be as obvious, she adds, and could take longer to achieve than previous yield gains took.
Leveraging Ethanol’s Uniqueness
Before joining Guardian, McCaherty spent a year performing private equity consulting. She decided she wanted to get back into running a business, having a team of dedicated people and making real products. “I wanted to be somewhere where my background would be relevant,” she says, “where our products were good and good for the environment.” McCaherty—raised on a small farm—also likes the connection her team and ethanol facilities hold to the rural community.
On the business front, she was attracted to the unique opportunities present in the greater ethanol industry and at Guardian. The joint-venture entity offers multiple sites and scale, so when improvements are found or made, she says, “we can really move the dial.” With a board made up of experienced CEOs and GMs from six independent ethanol companies, McCaherty is pleased with her options to find answers.
“If I have never seen something or need information, I certainly have someone on the board that has seen it before,” she says. “Being able to leverage that experience and knowledge has been useful.”
Since taking over nearly a year ago, she has also learned about—and has leveraged—the culture of the ethanol industry. McCaherty calls the industry “unusual” compared to her previous experiences. Although it is a massive industry in terms of production and economic impact, it is a very small industry, she explains. Many of the consultants or supplier organizations know each other. In many cases, McCaherty doesn’t have to explain the intricacies of her business when speaking to vendors for the first time. “Being able to leverage that part of the industry has been valuable,” she says.
Despite McCaherty’s drive and enthusiasm to improve on a well-established ethanol operation, she still recognizes that certain efforts may not be as relevant as others. Working with existing vendors, partners and established entities is important to McCaherty. “We want to make sure we have and keep networks set up so we aren’t reinventing the wheel,” she says.
For her, the network of people linked to Guardian is most important. “As a leader I think the most important thing is to have a strong team. At Guardian, I’ve been lucky. The people have great industry knowledge and a passion for the industry,” she says. The part of the industry she is still working to navigate and understand is on the policy side.
“I’ve never been in a business where policy has influenced it so much,” she says. Although she finds it challenging in some ways, she is more focused and concerned with implementing the three tenets Guardian is working towards under McCaherty’s leadership.
Triple Tenets
The first tenet is collaboration. With RPMG—Renewable Products Marketing Group, Guardian Energy’s marketing arm—McCaherty believes the larger group of ethanol operators can find answers and avenues to nearly everything ethanol related. Achieving greater scale—the second tenet of Guardian—is possible through the make-up of the group, she also says. The new research work being done at the Janesville facility is an example of how McCaherty hopes to turn a good idea into a major success by implementing change on a large scale. The third tenant for McCaherty isn’t as easy to explain or achieve. “We also work towards excellence,” she says.
According to McCaherty, excellence is a concept that is kind of a black box and difficult to truly understand or measure. But, although she freely admits she hasn’t attained it yet during her short time in the ethanol industry, McCaherty says with a calm confidence that her past successes and technical know-how, combined with her new links to other experts in the industry, have her in a good position to lead. She’s always been in the business of finding the best, or at least better, answer to a challenge or to a position in the market. That is where her personal approach to business—especially under her new role in ethanol—comes in, she says. Based on that, Guardian Energy appears to have found a fitting leader for its future. “You want leaders who will lead an organization as if it is their own,” she says.
Read the original story: Owning The Ethanol Exec Role
May 24, 2017
By Growth Energy
American consumers have helped E15—a fuel containing 15 percent ethanol and 85 percent gasoline—reach a significant milestone. According to Growth Energy’s ongoing analysis of fuel sales and consumption data reported by major gasoline retailers, drivers across the United States have logged more than 1 billion miles on E15—attesting to the fuel’s performance, safety, and value. The availability of E15 could save consumers up to $72 million by the end of 2017, based on U.S. EPA data.
“American drivers are taking advantage of the proven performance, environmental benefits, and savings E15 provides,” said Growth Energy CEO Emily Skor. “That’s why Congress should pass the Consumer and Fuel Retailer Choice Act and give drivers freedom to choose E15 year-round. This common-sense fix to the Reid vapor pressure (RVP) law will end confusing restrictions on retailers and allow consumers to choose a fuel that is kinder to the earth, good for their engines, and saves them up to 10 cents per gallon each trip to the pump in the summer.”
Growth Energy is proud to celebrate this milestone and highlight the value E15 delivers in terms of better performance, reduction of toxic emissions, and savings at the pump. Today, E15 is sold at more than 800 retail outlets across 29 states, and its availability continues to grow each day because 21st century drivers are demanding 21st century fuels.
The EPA approves E15 for use in any vehicle manufactured since 2001, which equates to 9 out of 10 cars on the road today. Automakers also approve E15 for use in nearly three-quarters of new cars.
Read the original story: American Drivers Surpass 1 Billion MIles on E15
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May 24, 2017
By Bliss Baker
The year is shaping up to be very significant for the ethanol industry and the role it will play in international efforts to reduce global transport emissions. From the signing of the Canada-European Union Comprehensive Economic and Trade Agreement, to the termination of the Trans-Pacific Partnership, to speculation about Brexit and the change in outlook with the new U.S. administration, what happens in 2017 could shape the global economic landscape for years to come.
While biofuels do not always make headlines in international trade discussions, the potential for the impressive growth and maturation of the global biofuels industry to be impacted by upcoming trade negotiations is very real. For the industry to continue to create jobs, reduce transport sector emissions, develop new technologies and drive down costs, a stable investment climate is crucial.
The recent rise of economic populist and protectionist language used in several countries is a troubling sign as it could harm investors’ confidence at a time when the biofuels industry’s future is particularly bright.
Projections for 2017 show that total global ethanol production will hold firm at 97.80 billion liters (25.8 billion gallons), continuing the trend of incremental annual ethanol production growth since 2013. The industry has achieved this resilience during a period when oil prices dropped to record lows. Bolstering this resilience, some of the favorite attacks used by opponents of the biofuels industry have finally been put to rest.
The food vs. fuel issue has been conclusively disproven as real-world data has become available, and the American Petroleum Institute’s self-serving myth that 10 percent is the marketplace limit for ethanol content in U.S. gasoline has been shattered. Data from the U.S. Energy Information Administration shows that in 2016, gasoline consumed in the U.S. contained more than 10 percent ethanol on average, demonstrating that the so-called blend wall is not a real constraint on ethanol consumption.
As these specious arguments are disproven by hard evidence, the enormous growth potential still available for biofuels globally becomes more clear every day. In the International Energy Agency’s World Energy Outlook for 2016, the IEA is forecasting global energy demand will increase by 30 percent by 2040, with a significant portion from the transport sector.
Where this demand would historically have been addressed with increased reliance on fossil fuels, the global mindset has shifted. The ratification of the Paris Agreement last year established very ambitious targets for CO2 emission reductions, and set aspirational goals of shifting to a low-carbon global economy and encouraging the development of clean technologies as the basis for future growth.
Ethanol, as an immediately dispatchable low-carbon transport fuel alternative, represents a key policy solution that will be integral to meeting this challenge.
Multiple nongovernmental organizations have published reports since the ratification of the agreement outlining how current national policies aimed at reducing CO2 emissions from global transport activity will not achieve the targets laid out in the Paris Agreement, and that governments will have to redouble efforts to meet steeper targets in coming years.
Developing low-carbon alternatives to fossil fuels while maintaining growth will require the maximization of all cost-effective options and continued investment in clean technology development. Biofuels represent an ideal solution, but for the global industry to continue to grow, international free trade and a stable investment climate is key.
International trade negotiators would be extremely shortsighted to consider protectionist measures that would undermine the biofuels industry and the hundreds of billions of dollars of economic activity it represents. Creating barriers to trade would only serve to increase global reliance on crude oil and increase greenhouse gas emissions. As major economies look to negotiate trade agreements that will shape the investment outlook for the foreseeable future, it is critical that countries avoid protectionist policies.
It’s time to recognize ethanol for the ideal low-carbon transport fuel alternative that it is, take the brakes off biofuels technology development and meaningfully begin the transition to a sustainable future.
Read the original story: Free Trade Needed to Maximize Biofuels’ Benefit
May 22, 2017
By Erin Voegele
The U.S. EPA has published renewable identification number (RIN) generation data for April, reporting that nearly 1.79 billion RINs were generated during the month, including more than 17.29 million cellulosic RINs. A net total of 5.92 billion RINs were generated during the first four months of the year.
More than 17.29 million D3 cellulosic biofuel RINs were generated in April, bringing the net total for the first four months of the year to 49.91 million. Nearly 1.31 million D3 RINs have been generated for ethanol so far this year, with 30.67 million generated for renewable compressed natural gas and 17.93 million generated for renewable liquefied natural gas. Nearly 44.73 million D3 RINs have been generated domestically, with 5.21 million generated by importers. No D7 cellulosic diesel RINs have been generated so far this year.
Nearly 7.02 million D5 advanced biofuel RINs were generated in April, bringing the net total for the first third of the year to 22.67 million. To date, 8.13 million D5 RINs have been generated for ethanol, with 10.94 million generated for naphtha, 890,603 generated for heating oil, and 2.72 million for nonester renewable diesel. More than 22.68 million D5 RINs have been generated domestically, with none generated by importers or foreign entities so far this year.
More than 1.18 billion D6 renewable fuel RINs were generated in April, bringing the net total for the first four months of the year to 4.87 billion. Most, 4.79 billion, were generated for ethanol, with 84.75 million generated for nonester renewable diesel. Approximately 4.79 billion D6 RINs have been generated domestically, with 3.83 million generated by importers and 84.75 million generated by foreign entities.
More than 279.63 million D4 biomass-based diesel RINs were generated in April, bringing the net total for the first four months of the year to 970.85 million. The majority, 736.51 million, were generated for biodiesel, with 235.88 million generated for nonester renewable diesel and 937,219 million generated for renewable jet fuel. Approximately 694.9 million have been generated domestically, with 168.55 million generated by importers and 109.88 million generated by foreign entities.
As of the end of April, the EPA estimates total RIN generation so far this year has reached nearly 5.93 billion, with 144.52 million RINs retired, 175.1 million locked and available and 5.61 billion unlocked and available.
Read the original story: EPA: 1.79 billion RINs generated in April
May 16, 2017
WILMINGTON, Del – Solenis signed an agreement to acquire the business and assets of Nopco Colombiana S.A. (“Nopco Colombiana”), a producer and supplier of specialized chemical solutions for water intensive industries, including pulp and paper, oil and gas, food and beverage and other industrial markets in Central and South America. The transaction is expected to close in the third quarter of 2017, following receipt of customary regulatory approvals.
Headquartered in Medellin, Colombia, Nopco Colombiana employs over 75 people. Until this acquisition, the company was Solenis’ pulp and paper specialty chemical distributor in Central and South America. Nopco Colombiana produces and distributes wet strength resins, antiscalants, dispersants and defoamers in Colombia, Ecuador and Peru.
“This is an opportunity to combine Nopco Colombiana’s position in northwestern South America with Solenis’ global direct-to-market strategy,” said John Panichella, president and CEO, Solenis.
“This acquisition will strengthen our portfolio for the water treatment market and enable us to better serve the growing Central and South American markets through expanding our production footprint and customer service capabilities,” stated José Armando Piñón Aguirre, vice president, Latin America, Solenis.
May 11, 2017
By Erin Voegele
The U.S. Energy Information Administration has released the May edition of its Short-Term Energy Outlook, predicting ethanol production will average 1.03 million barrels per day this year, up from 1 million barrels per day next year. Ethanol production is currently expected to fall to 1.02 million barrels per day in 2018. The May STEO increases the outlook for 2017 ethanol production when compared to the projection made in April, when the EIA predicted production would average 1.02 million barrels per day this year.
On a quarterly basis, the May STEO indicates ethanol production averaged approximately 1.03 million barrels per day during the first quarter of this year. Production is expected to fall to 1.02 million barrels per day during the second quarter, and increase to 1.03 million barrels per day during the third and fourth quarters. In 2018, the EIA predicts ethanol production will average 1.02 million barrels per day during the first two quarters of the year, increasing to 1.03 million barrels per day in the third quarter, and again falling to 1.02 barrels per day in the fourth quarter.
According to the EIA, U.S. regular gasoline retail prices are expected to average $2.39 per gallon during the April through September driving season, up from $2.23 per gallon last summer. The higher forecast gasoline price is primarily attributed to higher forecasted crude prices. The annual average price for regular gasoline in 2017 is expected to be $2.34 per gallon.
The EIA’s most recent weekly ethanol production data shows production averaged 1.006 million barrels per day the week ending May 5, up from 986,000 barrels per day the previous week. The EIA’s most recent monthly export data shows the U.S. exported nearly 3.35 million barrels of ethanol in February, primarily to Brazil, India and Canada. During the same month, the U.S. imported only 377,000 barrels of ethanol, all from Brazil.
Read the original story here : EIA Increases 2017 Ethanol Production Outlook
May 11, 2017
Press Release
ENGLEWOOD, Colo., May 11, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) announced today that it was selected to collaborate with researchers at the U.S. Department of Energy (DOE) as part of DOE’s Small Business Vouchers (SBV) program.
The SBV program provides funding for DOE’s national laboratories to partner with selected U.S. businesses, enabling these clean technology companies to leverage the laboratories’ technical and intellectual resources. Specifically, Argonne National Laboratory and the National Renewable Energy Laboratory (NREL) received funding to work with Gevo to develop a predictive octane blending model for isobutanol and gasoline blendstocks for oxygenated blending (BOBs). While it is known that isobutanol increases octane when blended into BOBs, the effect is non-linear, and dependent on a BOB’s properties. This project is intended to measure the actual octane effect on finished fuels when blending Gevo’s isobutanol with existing BOBs, obviating the need for blenders to perform these expensive and time consuming tests themselves.
This work is expected to support the investments that Gevo and its value chain partners are currently making to develop BOBs specifically for isobutanol (iBOBs). Isobutanol possesses a range of properties which makes it an ideal blendstock for gasoline such as high energy content, high octane, low water solubility and low volatility. By developing optimized iBOBs to blend with Gevo’s isobutanol, Gevo and its partners can produce high performance finished fuels which can benefit end consumers, as well as provide margin to all participants across the fuel blending value chain.
“Gevo is excited to be collaborating with Argonne and NREL on this project. We believe that expanding the blending of Gevo’s isobutanol will benefit the U.S. by reducing the need for petroleum imports while reducing harmful carbon emissions. We, and our partners, want to ensure that we develop finished gasoline that delivers the highest value to the end-customer. At the same time, we want to make sure that we are taking advantage of the superior properties of isobutanol to develop economical iBOBs that drive the highest margin through our value chain, while still delivering a high quality finished product to the consumer,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.
Read the original release: Argonne National Laboratory and National Renewable Energy Laboratory Receive Funding to Support the Blending of Gevo’s Isobutanol with Gasoline
May 10, 2017
By Erin Voegele
Gevo Inc. has announced first quarter financial results, reporting revenue of $5.6 million and a gross loss of $3.8 million. During an investor call, the company described plans to convert its Luverne, Minnesota, biorefinery to exclusively produce isobutanol and hydrocarbon products.
Revenue for the quarter was $5.6 million, down from $6.3 million during the same quarter of 2016. Revenue derived from ethanol sales and related products was $5.5 million, down $300,000 when compared to the first quarter of last year. The decrease is primarily attributed to lower ethanol and distiller grain prices. Hydrocarbon revenues were $100,000, down $200,000 from the same period of 2016. The loss from operations at $7.2 million.
Gross loss was $3.8 million, compared to $2.9 million during the first quarter of last year. Loss from operations was $7.2 million, compared to $5.9 million during the same period of 2016. The non-GAAP cash EBITDA loss was $5.4 million compared to $3.9 million during the first quarter of last year. Net loss was $5.9 million compared to $3.6 million during the first quarter of 2016. The non-GAAP adjusted net loss was $7.9 million, compared to $8 million during the first quarter of last year.The company reported net loss per share of 51 cents for the three months ending March 31, with a non-GAAP adjusted net loss per share of 68 cents.
Gevo produced approximately 100,000 gallons of isobutanol at its Luverne facility during the first quarter. According to the company, it was focused on producing sufficient quantities of isobutanol to meet immediate customer demand and providing enough inventory to support additional market and customer development efforts. Gevo’s production goals were not to maximize production, but to align production with isobutanol sales efforts. As a result, only ethanol was produced during certain periods of the quarter. The company also indicated it may elect to produce only ethanol during the second quarter of the year.
During an investor call, Patrick Gruber, CEO of Gevo, discussed future plans for the Luverne facility. The Gevo team, he said, remains laser focused on getting the company to profitability. He said the company believes the best path to achieve profitability to convert 100 percent of the grind and fermentation capacity at Luverne to its isobutanol and hydrocarbon products, specifically alcohol-to-jet (ATJ) and isooctane.
According to Gruber, Gevo is already executing on the conversion plan and is well into the engineering work needed to make it happen. The expanded plant is expected to have a capacity of more than 12 MMgy. However, Gruber noted the actual size and configuration of the expanded plant will be dependent on customer contracts, capital requirements and financing.
Given the level of engagement by customers, Gruber said the company currently expects 8-10 MMgy of that capacity to be processed into hydrocarbons. He cautioned, however, that could change for a variety of reasons.
To accomplish the build-out of Luverne, Gruber said the company has identified two key near-term goals it must accomplish. First is the restructuring of the company’s balance sheet to lessen its near-term liquidity issues. Second is the need to sign up customers for long-term supply agreements.
Read the original story: Gevo Discusses Future Plans for Luverne Plant
May 8, 2017
By Cindy Zimmerman
During his first visit to Iowa as Secretary of Agriculture, Sonny Perdue made his support for renewable energy and ethanol perfectly clear.
“Do you know who I work for?,” the Secretary asked the local FFA officer who wanted to make sure he supported renewable energy. “I work for a fellow by the name of Donald J. Trump. Did you hear what he said during the campaign? Renewable energy, ethanol is here to stay…you have nothing to worry about.”
Secretary Perdue visited Couser Cattle Company in Nevada, Iowa where he was welcomed by Bill, Nancy and Tim Couser, as well as Iowa Senators Joni Erst and Chuck Grassley, and Rep. Steve King. Looking comfortable in worn jeans, Perdue related that he calmed Sen. Grassley’s concerns about him as secretary when he told him, “I got 12 grain elevators, all we do is corn, wheat and beans and we sell to an ethanol plant.”
Couser, who is co-founder of Lincolnway Energy ethanol plant in Nevada, presented Perdue with his custom made corn products display, as well as a Don’t Mess with the RFS button from the Iowa Renewable Fuels Association.
Perdue held a round table discussion with Iowa biofuels and agricultural leaders and answered questions during a town hall event, all held on the Couser operation. During his visit to Iowa, Perdue also met with current Governor and soon to be Ambassador Terry Branstad, and incoming governor Kim Reynolds.
Read the original story: Secretary Perdue Shows Support for Renewable Energy
May 4, 2017
By Brian Jennings
Enactment of the Renewable Fuel Standard in Congress did more than save money at the pump and clean up the air for consumers, it also helped boost demand for U.S. corn and soybeans which, in turn, increased prices received by American farmers. By every measure, increasing the production and use of homegrown renewable fuels has spurred economic growth for U.S. farmers and supported high-skill, high-wage jobs in rural communities.
When the use of renewable fuels is curbed, the opposite is true. Starting in 2013, economic insecurity spread across rural America because the Environmental Protection Agency took implementation of the RFS off-track, reducing annual renewable volume obligations (RVOs) below levels established by Congress. During this period, EPA sided with oil companies that claimed infrastructure constraints and the mythical E10 “blend wall” prevented higher ethanol blends, such as E15 and E30, from being used in the marketplace. As a result, leading biofuel groups were forced to sue the Obama administration’s EPA. This litigation is ongoing and oral arguments were held last week by the U.S. Court of Appeals for the District of Columbia. A court decision is expected later this year.
The timing of EPA’s mismanagement of the RFS was awful and the consequences have been worse. While EPA was riding the brakes on the RFS, the productivity of American farmers led to record-high corn crops in 2015 and 2016. Supplies grew while demand and farm income fell. According to the United States Department of Agriculture, surplus stocks of corn will swell to a 30-year high of 2.4 billion bushels and corn prices will fall to a 10-year low in 2017. Liquidity ratios and working capital have deteriorated to their weakest levels since 2002 and the value of farm sector assets is expected to decline by $32 billion in 2017. Farm debt is mounting and will represent about 20 percent of farm income this year. The share of farm loans that are delinquent is creeping up and reports of farm auctions have been on the rise.
Net farm income has dropped from $124 billion in 2013 to an expected $62 billion in 2017, a decrease of nearly 50 percent since EPA took the RFS off-track. As some will remember, similar conditions forced Congress to authorize yearly ad hoc economic emergency disaster payments to farmers between 1999 and 2002 and required additional spending of $73.5 billion in the 2002 Farm Bill to avert economic collapse in rural America. It was enactment of the RFS in 2005 that restarted the rural economy and allowed farmers to profit from the free market versus relying so heavily on government payments. The lesson learned is that increasing the demand for renewable fuels leads to higher market prices for farmers and reduced taxpayer spending on farm program payments.
Growing the renewable fuels market in 2017 is even more critical given the uncertainty created by efforts to renegotiate existing trade pacts. While we are hopeful that these new negotiations will lead to better trade opportunities, the uncertainty in the near term will impact the U.S. farm economy which makes a strong and growing market for ethanol-blended fuel even more important.
To restore badly needed economic security to rural America, EPA and Congress should take a number of steps. First, Congress must reject any attempt to reduce or repeal the RFS. To get the RFS back on track, the Trump administration needs to make good on its campaign promise to set and keep RFS volumes at statutory levels. Likewise, EPA Administrator Scott Pruitt needs to follow through on the statement made during his confirmation hearing “to honor the intent of the RFS statute…, use RFS waivers judiciously, and honor RVO timelines.”
Second, legislative or regulatory action must be taken so E15 and higher blends of ethanol have access to the market. Retailers want to sell E15 in the summer months because the fuel is less emitting and lower cost than E10 and straight gasoline, but EPA’s current interpretation of its Reid vapor pressure (RVP) rule handcuffs them. This RVP regulation is the most burdensome hurdle preventing more immediate growth of E15 use nationwide. Bipartisan legislation is pending in Congress to fix this problem and EPA has options at its disposal to make a commonsense regulatory change that would allow consumers to have access to E15 and other lower cost fuels that improve air quality. Action needs to be taken soon.
A third hurdle impeding the use of higher ethanol blends is the mountain of EPA red tape over the approval process for new certification fuels and the registration of those fuels. EPA needs to streamline its fuel petition process and eliminate unreasonable criteria for approval of high-octane fuels, such as E25-E40, that currently discourages innovation and obstructs the ability for new efficient high-octane fuels to compete in the marketplace.
Read the original story: Renewable Fuels Are Part of an ‘America First’ Energy Plan