In the News

×

Warning

JUser: :_load: Unable to load user with ID: 727

Subscribe to this RSS feed

In the News

US Aims to Lower Beijing's Tariff on Ethanol Ahead of Chinese Demand Boom

February 26, 2019

By Tom DiChristopher

U.S. trade negotiators hope to convince Beijing to lower tariffs on ethanol, putting American farmers in a position to capitalize on rising demand for the corn-based biofuel in China.

The Trump administration's trade team has made the request, but their Chinese counterparts have yet to respond, Agriculture Secretary Sonny Perdue told reporters on Tuesday.

"They are engaged in conversation, they listen and hear us, but we are at this stage unable to determine the willingness factor," Purdue said, according to a Reuters report.

China once represented a bright opportunity for American corn farmers and ethanol producers, but their prospects have faded in recent years.

In 2016, China was the third biggest market for U.S. ethanol, accounting for nearly 20 percent of U.S. exports and drumming up over $300 million in revenues, according the Renewable Fuels Association. But after two years of rising trade tensions, China took just 4 percent of U.S. ethanol exports in 2018, RFA says.

Trade first dropped off after China put a 30-percent charge on U.S. ethanol in 2017. Last year, China increased the tariff to 45 percent after the Trump administration put new duties on foreign aluminum and steel.

Under a new deal, Beijing would ideally set the import tax on ethanol below 15 percent, Perdue said on Tuesday.

That would potentially allow U.S. ethanol suppliers to take advantage of Beijing's plans to introduce E10 — a gasoline blend containing 10 percent ethanol — across the country next year.

To achieve that goal, China needs to source 15 million tons of ethanol per year, a nearly sevenfold increase from the country's current consumption, according to IHS Markit. Today, China only has enough capacity to produce about 3 million tons per year.

Clearing a path for more U.S. biofuel exports would be a boon to President Donald Trump, who has had a tense relationship with the ethanol industry and agricultural states. The Trump administration has upset Big Corn by handing out hardship waivers to small refineries, which allow them to circumvent U.S. requirements to blend ethanol into gasoline.

The Trump administration has also considered changes to U.S. biofuel policy that ethanol producers worry would shrink domestic demand for their product.

Read the original article: US Aims to Lower Beijing's Tariff on Ethanol Ahead of Chinese Demand Boom

Walz, Noem to Lead Governors’ Biofuels Coalition in 2019

Ethanol Producer Magazine

February 20, 2019

By Governors’ Biofuels Coalition

The Governors’ Biofuels Coalition announced Feb. 18 that Minnesota Gov. Tim Walz will serve as chair and South Dakota Gov. Kristi Noem will serve as vice chair of the coalition during 2019.

For over 20 years, the Governors’ Biofuels Coalition has provided regional and national leadership on biofuels policy. The bipartisan group is comprised of governors from across the nation.

“I look forward to working with Governor Noem to advance the bipartisan work of the Governors’ Biofuels Coalition. The production and use of biofuels increase family incomes in rural America, diversifies our nation’s energy portfolio, and provides consumers a choice at the fuel pump,” Walz said.

“We must adopt state and national policies that grow a biofuels industry vital to our states’ economies and the nation’s need to reduce carbon and other harmful emissions. Those policies include steps to open the market for ethanol as a source of clean octane to reduce the toxic aromatic content of gasoline and ground level precursors. We will continue to urge EPA Administrator Wheeler to honor President’s Trump commitment to make E15 fuel available this summer as well as many overdue EPA regulatory reforms.”

“Governor Noem and I will ask our governor colleagues to consider requiring the use of higher ethanol blends in all state fleet vehicles. Over a decade ago, many of the nation’s governors required the use of E10 in state fleet vehicles, which was a critical first step to consumer acceptance of higher ethanol blends,” Walz said.

“I’m honored to serve as vice chair of the Coalition and to continue working to strengthen the energy independence of our states and nation,” Noem said. “Minnesota, South Dakota and all members of the Coalition continue to play a major role in the nation’s energy policies.”

“Renewable energy benefits everyone, from energy consumers to farmers to anyone who breathes our air,” Noem concluded.

Walz and Noem both thanked Iowa Gov. Kim Reynolds for not only her leadership of the Coalition last year but for her tireless national leadership on renewable energy policy.

Read the original article: Walz, Noem to Lead Governors’ Biofuels Coalition in 2019

Kansas Ethanol Signs Agreement to Use Enogen Corn From Syngenta

Ethanol Producer Magazine

February 18, 2019

Syngenta

On Feb. 13, Syngenta announced a three-year marketing agreement with Kansas Ethanol LLC to use Enogen corn enzyme technology at its 80 MMgy ethanol plant in Lyons, Kansas.

Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and can help an ethanol plant significantly reduce the viscosity of its corn mash, improving plant performance. Numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.

Enogen corn will provide the Kansas Ethanol facility with an industry-leading enzyme for enhanced ethanol production, while also supporting local growers and the community. The Kansas Ethanol facility will be accepting its first load of Enogen grain this fall.

“This agreement will enable us to buy more corn directly from farmers and purchase alpha amylase locally, in the form of high-quality grain,” said Mike Chisam, President and CEO of Kansas Ethanol. “We believe Enogen corn will create value for our plant, our growers and our community.”

Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. To date, more than $100 million in premiums have been paid to Enogen growers. According to data from Iowa State University, these premiums create an additional $63 million in economic activity for a total of $163 million in cumulative economic benefit to the region.

“We are proud to partner with Kansas Ethanol to help keep enzyme dollars local and help them invest in their local community,” said Jeff Oestmann, head, biofuels operations—Enogen at Syngenta. “Syngenta is committed to the success of the ethanol industry through helping plants operate more efficiently and providing growers the opportunity to serve as enzyme suppliers.”

Read the original article: Kansas Ethanol Signs Agreement to Use Enogen Corn From Syngenta

Ethanol Fix is Vital for Minnesota Farmers

Pine and Lakes Echo Journal

February 15, 2019

By Representative John Poston

The ethanol industry has great potential to improve agricultural communities in Minnesota, boosting the economy and helping our hardworking farmers provide for their families.

Over the past five years, farm income has fallen by 46 percent. One thing that all Americans can do to help is use a biofuel that we make and sell right here at home. E15, a 15 percent ethanol blend, is made from farm crops like corn.

Minnesota farmers rely on ethanol plants to buy their crops and convert them into ethanol. This provides farmers a valuable market for their crops and keeps prices at the pump low. Due to outdated regulations, the Environmental Protection Agency has restricted the sale of E15, making it unavailable during the summer months, the busiest season of travel for motorists.

Minnesotans have been champions of value-added agriculture long before this decision, but we are on a deadline.

The fix for E15 must be in place by June 1 to benefit Minnesota drivers and farmers. Some in the fossil fuel industry have sought to stall this needed action. We cannot afford any delays that would risk another year of sagging rural incomes and economic uncertainty in corn country.

The EPA needs to deliver on President Trump's promise to make E15 a reality. Minnesota farmers are depending on it.

Rep. John Poston,

District 9A

R-Lake Shore

Read the original letter to the editor: Ethanol Fix is Vital for Minnesota Farmers

Exclusive: EPA May Issue E15 Gasoline Plan Without Biofuel Credit Trade Limits - Sources

February 11, 2019

By Humeyra Pamuk

The U.S. Environmental Protection Agency is considering releasing its draft proposal to expand sales of higher ethanol blends of gasoline without including simultaneous measures it promised the oil industry to curb biofuel credit speculation, according to three sources familiar with the matter.

The move would help the agency lift a summertime ban on sales of so-called E15 gasoline in time for the U.S. driving season, but is likely to anger oil refiners that had been asking the Trump administration for biofuel credit market reforms to reduce their costs.

If EPA passed on introducing biofuel credit trading limits, it would leave the door open to potential speculative price surges that could cost refiners like Valero Energy Corp hundreds of millions of dollars. President Donald Trump announced in October he was directing the EPA to allow year-round sales of E15, in a win for the powerful corn industry which supplies ethanol. E15 gasoline contains 15 percent ethanol, versus the 10 percent found in most U.S. gasoline.

The ban had been imposed over concerns that E15 contributes to smog in hot weather.

EPA spokesman Michael Abboud declined to comment.

The EPA had initially planned to combine credit trading limits into the E15 rule as a concession to the oil industry, which says speculation increases the price of biofuel credits it must purchase to comply with federal law.

Under the U.S. Renewable Fuels Standard oil refiners have to blend increasing volumes of biofuels into the nation’s gasoline and diesel each year, or purchase credits - called Renewable Identification Numbers - from those who do.

The combined draft proposal was scheduled for release this month, and was meant to be finalized and implemented by June.

“The EPA has been seriously looking at dropping the RIN reform to speed up the process on E15,” one industry source with knowledge of the matter said.

One other source said that the EPA had already decided to delay the credit trading limits. “They separated the RIN reform to ensure that the (E15) rule would get done in a timely manner,” the source said.

The sources asked not to be named discussing the matter.

The agency is still working to release its draft rule for E15 by the end of the month, possibly within days, and is planning to expedite the rule-making process to finish it by June when seasonal driving demand picks up.

The recent partial government shutdown in the United States had raised concerns the effort might not be completed on time because agency workers were furloughed. Bill Wehrum, a senior EPA official, in charge of the department drafting the rule, said the agency would still make it ready for summer driving season.

Read the original article: Exclusive: EPA May Issue E15 Gasoline Plan Without Biofuel Credit Trade Limits - Sources

Strong Global Demand for U.S. Ethanol and DDGS Continues into November

Renewable Fuels Association

February 8, 2019

News Article

U.S. ethanol exports through November 2018 reached 1.56 billion gallons, up 31% from the same period a year earlier and already a calendar-year record. Exports remained robust in November although volumes for the month decreased 16% to 147.9 million gallons (mg), according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). In a departure from recent trends, sales were heavily concentrated in just three countries accounting for nearly three-fourths of all U.S. ethanol shipments in November. Brazil imported 51.2 mg, representing 35% of total U.S. export sales. While this was 3.2 mg lower (-6%) than October volumes, it was enough to secure Brazil’s position as the top U.S. ethanol customer for a second straight month. Canada decreased its imports of American ethanol by 8% to 28.4 mg, the lowest volume in seven months but still 19% of total ethanol shipments in November. Volumes exported to India were a solid 28.1 mg (19% of U.S. ethanol exports), slipping just 3% from a record offtake in October. Mexico imported a record 4.8 mg, up 144% for the month.

The Netherlands (8.2 mg, down 21%), South Korea (6.2 mg, down 20%), and Spain (4.3 mg, up 156% to a 13-month high) were other top markets. Notably, after purchasing 6.2 mg in U.S. imports in October, the Peruvian market essentially disappeared with the implementation of countervailing duties on U.S. ethanol by their government in November.

November exports of undenatured fuel ethanol were 90.5 mg, an increase of 10.9 mg (14%). Brazil purchased 51.2 mg (up 10 mg or 23%), representing 57% of our undenatured export market while exports to India at 14.6 mg were down 10 mg (41%). Expanded volumes were shipped to the Netherlands (8.2 mg, up 7 mg), Mexico (4.8 mg), Spain (4.3 mg), and South Korea (2.8 mg) in November while the Philippines (2.4 mg) cut imports in half.

American producers shipped 41.0 mg of denatured fuel ethanol in November, down 55% from the October record (91.4 mg) and the smallest volume in ten months. Most of the global export market contraction can be attributed to quiet trading in six major markets (Brazil, the Netherlands, the United Arab Emirates, Peru, Oman, and the Philippines) that were responsible for cumulative imports of over 46 mg in October. Canada captured two-thirds of our denatured fuel export market with 25.7 mg of product, despite a 9% decrease from prior month sales. India’s November purchases were up 70% for a 13-month high of 7.5 mg, accounting for 18% of our denatured fuel ethanol market. Other top customers were Colombia (2.6 mg), South Korea (2.5 mg), and Jamaica (2.2 mg).

November sales of American denatured non-fuel ethanol skyrocketed to a record 12.3 mg, up from 2.5 mg in October. India re-entered the market to purchase 6.0 mg (48% of total sales), Nigeria also stepped back in with 3.6 mg (29% share) in sales, and 2.6 mg crossed into Canada (up 8%). November U.S. exports of undenatured non-fuel product more than doubled to 4.1 mg. The majority of product shipped to Saudi Arabia (1.7 mg), Japan (1.3 mg), and South Korea (0.9 mg).

The United States imported 9.9 mg of undenatured ethanol from Brazil in November. Total year-to-date U.S. ethanol imports stand at 66.9 mg—essentially all sourced from Brazil. This is 13% behind last year at this time.

November exports of U.S. dried distillers grains with solubles (DDGS)—the main animal feed co-product generated by dry mill ethanol plants—were 1.017 million metric tons (million mt). While shipments tapered slightly (-0.2%), November was the sixth straight month that global demand breached 1 million mt. Mexico purchased 174,465 mt (up 9%) to capture 17% of the market. U.S. shippers sent 166,008 mt of DDGS to Vietnam, up 47% and the largest volume in nearly two years. Shipments of 97,600 (up 1%) entered Indonesia to set a new monthly record. U.S. DDGS export volumes to some key markets contracted, although demand remained robust: Thailand (79,603 mt, -14%), South Korea (71,699 mt, -12%), Canada (51,787 mt, -18%), and the United Kingdom (48,598 mt, -33%). Year-to-date U.S. DDGS exports are 10.99 million mt, implying an annualized total of 11.99 million mt. If realized, U.S. distillers grains exports would capture the second-largest annual volume on record.

Read the original article: Strong Global Demand for U.S. Ethanol and DDGS Continues into November

US Asks Brazil to Consider Lifting Tariffs on Ethanol Exports

February 6, 2019

The United States has asked Brazil to consider lifting tariffs imposed on its ethanol exports and is hopeful of a positive outcome, a senior official at the U.S. Department of Agriculture said on Wednesday.

Brazil currently charges a 20 percent tariff on ethanol imports surpassing 150 million liters a quarter, in a bid to shield local farmers from foreign competition.

"Our hope is that the warm relations that exist between our presidents and how that cascades down might let us find some relief," Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney said on a conference call from Brasilia.

McKinney and U.S. chief agricultural negotiator Gregg Doud have been in Brazil to hold talks with Brazilian government officials. McKinney said he was optimistic for change, although so far Brazil has not indicated that they would lift the tariffs.

McKinney said Brazil had previously said it would reassess the tariffs two years from the September 2017 date on which they were imposed. "You can imagine there's always run-ups to that.

Nobody said it is a hard date and that's another reason we are having a discussion," he said.

The U.S. delegation was set to meet with the Brazilian ministry of agriculture, he said.

Brazil's new President Jair Bolsonaro, a 63-year-old former army captain and admirer of U.S. President Donald Trump, has quickly deepened ties with the United States and Israel.

Bolsonaro said last year that he would like to see Brazil retake global leadership in ethanol production, which it lost to the United States some years ago.

Read the original article: US Asks Brazil to Consider Lifting Tariffs on Ethanol Exports

NACS Favors Giving Consumers Options At the Pump

Ethanol Producer Magazine

February 6, 2019

By Matt Thompson

For the National Association of Convenience Stores, selling E15 is a matter of giving consumers plenty of fuel options. “We like the optionality of being able to have lots legal choices and really sell what the consumer wants to buy,” said Paige Anderson, NACS’s director of government relations. “And in our minds, that’s the best way to go, so we like the fact that there’s lots of choice out there for us and we think ultimately that’s the best thing for the consumer.”

But, she says, the biggest barrier preventing retailers from adding E15 to their product mix is not being able to offer the fuel year-round. “What we hear over and over from our folks is … ’When are we not going to have to change our labels after nine months?’ This is the number one issue we hear about for those either trying to sell E15 or who are looking and exploring to sell E15,” she said.

So it’s no surprise that NACS is keeping an eye on EPA’s rule making process to extend the Reid vapor pressure (RVP) waiver to blends higher than E10, and allowing their sale year-round. President Donald Trump directed the EPA last year to allow for year-round sales prior to 2019’s driving season.

“For those that are on the sidelines that have been looking and are interested in getting the E15, they’ve been waiting until this gets approved and they have the ability to sell year-round,” Anderson said. “So … making sure that we get that RVP one-pound wavier for E15, certainly has been a key issue for our folks looking to expand and start selling E15 to consumers.” She added that it’s also a major issue for retailers who are already selling the blend, as changing labels is a hassle.

Two issues NACS is watching closely are potential renewable identification number (RIN) reforms and the small refinery exemption process. Anderson both issues have potential to effect retailers.

“The folks that sort of negotiated this deal to get this to happen, they want to do a lot of changes to the RINs program, … which potentially could be very harmful and have the opposite effect of trying to encourage more biofuel into the marketplace. And so, ok, we’ve done a good thing by allowing year-round sales of E15, but now we have to look at all of these reforms to the RIN program that aren’t needed or makes it more difficult.”

Anderson said NACS’s focus on small refinery exemptions has been around gaining more transparency into how decisions are made and who receives the waivers. “We strongly believe we need to know what the criteria is in granting a waiver so that we all know what the rules of the road are in the process and how you grant it,” she said. “And then we believe when a decision’s made one way or another, that that information is given to everybody at the same time so that a particular entity doesn’t have an unfair advantage.”

And how EPA deals with extending the waiver and RIN reform will play a role in whether or not the rulemaking is completed in time for the summer driving season. “It’ll be interesting to see how they deal with the one-pound waiver rulemaking and how they deal with potential RINs reform,” she said. “Do they do it together? Do they do it separate? And I think that’s going to also effect how long they take and how this moves.” She added that, barring another government shutdown, NACS feels it is possible for the RVP waiver for E15 to be in place prior to the summer driving season.

Despite the prohibition on selling E15 during the summer months, Anderson said retailers who are currently offering E15 are happy with the product. “Our folks that have jumped in with both feet and are giving it a try have been positive and they really want to be able to sell it year-round,” she said.

Read the original article: NACS Favors Giving Consumers Options At the Pump

More...

New Study: RFS2 Has Reduced GHG Emissions by 600 Million Metric Tons, Beating EPA Expectations

Renewable Fuels Association

February 6, 2019

Press Release

A new study released today finds that the expanded Renewable Fuel Standard (RFS2) has been a tremendous success in reducing greenhouse gas (GHG) emissions, with nearly 600 million metric tons of GHG reduction since 2007. Actual GHG reductions under the RFS2 have far surpassed the Environmental Protection Agency’s (EPA) original expectations of 422 million metric tons, according to the study. The analysis was conducted by Life Cycle Associates, a California-based scientific consulting firm, and commissioned by the Renewable Fuels Foundation (RFF).

The findings, which come as two House committees hold climate change hearings this morning, highlight the important role that ethanol and other biofuels can play in efforts to fight climate change and reduce GHG emissions.

“The RFS2 has resulted in significant GHG reductions, with cumulative CO2 savings of 600 million metric tonnes over the period of implementation,” according to the study. “The GHG reductions are due to the greater than expected savings from ethanol and other biofuels. These emissions savings occur even though cellulosic biofuels have not met the RFS2 production targets. Biofuels have achieved and exceeded the GHG reductions estimated by EPA.”

As outlined in the report, the larger-than-expected GHG reductions are due to:

-The adoption of technology improvements in the production of corn-based ethanol, resulting in far greater GHG reductions than originally estimated by EPA;

-The GHG emissions of petroleum are higher than the baseline estimates originally projected by EPA; and

-Advanced biofuels like biodiesel, renewable diesel, and renewable natural gas have contributed additional GHG reductions, even though actual cellulosic biofuel production has been lower than initially projected.

Using the latest available data and modeling tools, the study found that the conventional ethanol consumed in 2018 reduced GHG emissions by 43 percent compared to petroleum, even when hypothetical “land use change” are included. That compares to EPA’s initial projections that conventional ethanol would achieve only a 20 percent GHG reduction versus petroleum.

“As this study demonstrates, renewable fuels like ethanol are an incredibly effective tool for reducing GHG emissions,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “And with renewable fuels, we don’t need to cross our fingers and wait for the development and commercialization of a new technology. Ethanol is available here and now to help our nation decarbonize our transportation fuels in a cost effective manner. As the new Congress turns its focus to climate change and efforts to reduce GHG emissions, we encourage lawmakers to recognize and build upon the incredible success of the RFS.”

The 600 million metric tons of GHG reduction achieved under the RFS is equivalent to the GHG savings that would result from removing roughly half of the nation’s automobiles from the road for a full year or shutting down 154 coal-fired power plants for a year, according to EPA.

A copy of the report is here.

Life Cycle Associates Managing Director Stefan Unnasch will be presenting this report on Tuesday, Feb. 12 at RFA’s National Ethanol Conference in Orlando.

Life Cycle Associates analyzes the energy and environmental impacts of fuels and energy systems. The firm’s work focuses on the assessment of fuel production pathways on a well to wheel basis, economic analysis of energy systems, process engineering analysis of fuel production systems, and the development of GHG reduction strategies. Life Cycle Associates has conducted studies and research for the Natural Resources Defense Council (NRDC), U.S. Department of Energy, U.S. EPA, California Energy Commission, California Air Resources Board, the European Commission, Coordinating Research Council (CRC), Northeast States for Coordinated Air Use Management (NESCAUM), Federal Aviation Administration, New Fuels Alliance, Alberta Department of Energy, and many others.

Read the original article: New Study: RFS2 Has Reduced GHG Emissions by 600 Million Metric Tons, Beating EPA Expectations

RFA Asks EPA to Use RFS ‘Reset’ Rule to Reallocate Waived RVOs

Ethanol Producer Magazine

January 31, 2019

By Erin Voegele

The Renewable Fuels Association is calling on the U.S. EPA to use its upcoming Renewable Fuel Standard “reset” rule to reallocate renewable volume obligations (RVOs) impacted by recent small refinery exemptions, a 2016 lawsuit, and a recent bankruptcy settlement.

A notice released by the Trump Administration in October 2018 indicates the EPA is scheduled to release an RFS reset rule in early 2019 and finalize that rulemaking by the end of the year. The notice states that “under the statutory provisions of governing the [RFS] program, EPA is required to modify, or reset, the applicable volume targets specified in the statute for future years if waivers of those volumes in past years met certain specified thresholds. Those thresholds have been met or are expected to be met in the near future. As a result, EPA is proposing a rulemaking that will propose modifying the applicable volume targets for cellulosic biofuel, advanced biofuel, and total renewable fuel for the years 2020-2022.”

On Jan. 29, Geoff Cooper, president and CEO of the RFA, sent a letter to Acting EPA Administrator Andrew Wheeler in which he said the RFA expects the EPA will use the rest rule as an opportunity to adjust future implied blending obligations for conventional fuels upward to account for the 500 million gallons of renewable fuel improperly waived from the 2016 standards, as required by the D.C. Circuit Court of Appeals’ remand in Americans for Clean Energy v. EPA; the approximately 232 million renewable identification number (RIN) “write-off” as part of the Philadelphia Energy Solutions Refining and Marking LLC bankruptcy settlement; and the 2.25 billion RINs attributable to 48 small refinery exemptions granted for compliance years 2016 and 2017.

“As a result of these waivers or exemptions from required volumes, many ethanol plants have recently idled, shut down, or announced layoffs,” Cooper wrote. “These compliance exemptions have also hurt demand and price for American farmers. At a time when trade disputes are dampening export market opportunities, the EPA-induced disruption in domestic ethanol and corn demand is devastating.”

In his letter, Cooper notes that due to the exemptions he listed, the RFS—as implemented—has not achieved the applicable volume requirements set by the EPA in its annual rules. He also stressed that EPA has statutory mandate to ensure those volume requirements are met, noting that mandate can only be accomplished if EPA adjusts volumes upward to account for volume obligations previously exempted by EPA and not accounted for in the subsequent year’s volume requirement.

A full copy of the letter can be downloaded from the RFA’s website.

Read the original article: RFA Asks EPA to Use RFS ‘Reset’ Rule to Reallocate Waived RVOs

U.S. Ethanol Exports Could Hit Record 4 Billion Gallons by 2022, Says Expert

Successful Farming

January 30, 2019

By Jerry Perkins

Exports of U.S. ethanol could hit a record 4 billion gallons a year in 2022, according to Mike Dwyer, chief economist for the U.S. Grains Council.

Dwyer made the prediction Tuesday during a roundtable discussion on trade at the Iowa Renewable Fuels Summit, which was held at the Prairie Meadows Conference Center in Altoona, Iowa. The annual event is sponsored by the Iowa Renewable Fuels Association.

If the U.S. ethanol industry exports a total 4 billion gallons in 2022, it would more than the double the current record of 1.62 billion gallons of ethanol exports set during the 2017-2018 marketing year that ended August 31, 2018.

During that 12-month period, U.S. ethanol was exported to 74 countries, according to the U.S. Department of Agriculture’s Foreign Agricultural Service.

U.S. ethanol exports during the current marketing year that ends August 31 are on track to hit 2 billion gallons, Dwyer noted.

The U.S. Grains Council is a Washington, D.C.-based organization that promotes the exports of U.S. corn, sorghum, and barley and value-added products made from those commodities.

Dwyer said that the Grain Council’s global strategy includes selling ethanol to the Chinese market despite trade disputes between the U.S. and China that have roiled the markets there for U.S. crops and other products.

China currently imposes a 70% duty on U.S. ethanol, Dwyer stated, but it will have to find a way to import foreign ethanol if it aims to fulfill the mandate it has imposed to use a blend of 10% ethanol and 90% gasoline (E10) by 2020.

It is possible that China could import approximately 1 billion gallons of U.S. ethanol to meet its E10 mandate, Dwyer told Successful Farming in an interview after his presentation at the Iowa Renewable Fuel Summit. That would make China the first country to import 1 billion gallons of U.S. ethanol a year, he added.

If trade issues between the U.S. and China are resolved, Dwyer stated, ethanol imports by China could hit 300 million gallons this year.

Kelly Nieuwenhuis, a farmer from Primghar, Iowa, who traveled to China last year on a U.S. Grains Council trade mission, said that he was told by Chinese gasoline retailers that they want to do business with the U.S. ethanol industry. The Chinese also expressed a desire to use more ethanol because they know it will improve their air quality, Nieuwenhuis remarked.

Dwyer said that the Grains Council believes that by 2022, 75% of U.S. ethanol exports will go to six countries: China, India, Japan, Brazil, Canada, and Mexico.

Ron Lamberty, senior vice president and market development director for the American Coalition for Ethanol in Sioux Falls, South Dakota, said during his presentation at the trade roundtable that he has made seven trips to Mexico to advise the transportation fuels industry there on how it can integrate the use of E10 into Mexico’s fuel supply.

Mexico has made the use of E10 legal in the country, Lamberty said, except for the cities of Mexico City, Guadalajara, and Monterrey. Small quantities of ethanol are currently being sold in Mexican cities on the U.S.-Mexico border, Lamberty told Successful Farming in an interview after his presentation.

Lamberty has participated in technical workshops on ethanol that have been held for Mexico’s petroleum equipment installers and retailers. The workshops were a joint effort of the U.S. Grains Council and the Mexican Association of Petroleum Equipment Suppliers (AMPES) and were intended to inform Mexican fuel marketers about sourcing, blending, distributing, and retailing ethanol-blended gasoline.

Mexico’s potential annual E10 market totals 1.2 billion gallons, Lamberty stated, which represents 200 million gallons more U.S. ethanol than is currently imported by Canada. Canada was the second-largest importer of U.S. ethanol in the marketing year ended August 31, 2018. Brazil was the largest importer of U.S. ethanol during the most recently-completed marketing year.

In opening remarks at the Summit, Iowa Renewable Fuels Association Executive Director Monte Shaw said that 2018 was his toughest year yet working for the industry.

Making the year 2018 particularly difficult were the fight for the year-round sales of E15, China trade disputes, and the plethora of small-refinery exemptions to the Renewable Fuel Standard (RFS) granted by the Environmental Protection Agency (EPA). The exemptions have been estimated to have cut the demand for ethanol domestically by 2.25 billion gallons a year.

Shaw emphasized that despite the policy challenges, the biofuels industry fought hard and won a victory when President Donald Trump announced on October 9, 2018, in Council Bluffs, Iowa, that he had ordered the EPA to begin a rulemaking process that will allow the year-round sale of E15.

As 2019 ramps up, Shaw said the state of the biofuels industry is “hurting but hopeful… Due to small-refinery exemptions and the China trade dispute, ethanol producers are facing a period of prolonged breakeven or negative margins the likes of which we haven’t seen in many years. And biodiesel producers are forced to sell their product based on Congress retroactively restoring the blenders’ tax credit.”

Despite the drawbacks, he said, Iowa biofuels producers are hopeful. “We have ample feedstocks, efficient production capacity, and the ability to once again power the rural economy to prosperity,” Shaw stated

He also noted that, during 2019, the industry will likely see the outcome of many pending lawsuits over small-refinery exemptions, the highly-anticipated E15 rule allowing its sale year-round, the announcement of 2020 blend levels, a possible RFS reset rule, and other beneficial developments.

“Quite frankly, when you look at the plethora of issues on our plate that should come to a head this year, I will not be surprised if 2019 goes down in biofuels history as the most impactful year – for better or worse – since 2005,” Shaw concluded. “We may not like every answer we get. But I’m confident that 2019 can be a great year for biofuels and biofuels policy.”

Read the original article: U.S. Ethanol Exports Could Hit Record 4 Billion Gallons by 2022, Says Expert

Gevo Supplies ATJ to California Airport, Joins SAF Coalition

Ethanol Producer Magazine

January 25, 2019

By Erin Voegele

Gevo Inc. made two announcements in mid-January regarding its efforts to expand the use of sustainable aviation fuel (SAF). The company supplied its fuel to an airport in California and signed on to an existing coalition that aims to expand the use of SAF.

On Jan. 17, Gevo announced it was supplying its alcohol-to-jet (ATJ) to Avfuel Corp. for use at the “Business Jets Fuel Green: A step Toward Sustainability” event, which was held that day at the Van Nuys Airport in Southern California. According to Gevo, the event aimed to demonstrate that renewable jet fuel, including Gevo’s ATJ, can become a mainstream, drop-in alterative for today’s general aviation aircraft. During the event, Avfuel offered a blend of traditional jet fuel and Gevo’s ATJ.

“There are more than 210,000 aircraft in the general and business aviation sector in the U.S. alone. With more than 650 Avfuel-branded locations and 3,000-plus fueling locations, our partnership with Avfuel has allowed us to begin to effectively support this market and the market goals to achieve carbon neutrality from 2020 and beyond,” said Patrick R. Gruber, CEO of Gevo. “This event demonstrates our partnership and mutual commitment with Avfuel to feed the world, sequester carbon dioxide and reduce greenhouse gas emissions.”

Less than one week later, on Jan. 22, Gevo announced it has joined with the San Francisco International Airport (SFO), certain airlines and other industry participants for the use of sustainable aviation fuels (SAF). The company said it has signed onto a memorandum of understanding (MOU) with United Airlines, Alaska Airlines, American Airlines, Cathay Pacific, Chevron Corp., Shell Oil Co., Neste and Lanzatech Inc. and others to work cooperatively on expanding the use of SAF at SFO. The consortium was originally formed in September 2018.

“With this Memorandum of Understanding, we’re moving the dial on an entire industry,” said Ivar C. Satero, director director at SFO. “A quantum leap of this kind requires partnering with like-minded organizations, and we’re pleased that Gevo has joined the airlines and fuel suppliers who are committed to expanding the use of Sustainable Aviation Fuel in air transportation.”

Read the original article: Gevo Supplies ATJ to California Airport, Joins SAF Coalition

Novozymes Reports Significant Growth in Bioenergy Sales for 2018

Ethanol Producer Magazine

January 24, 2019

By Erin Voegele

Novozymes has released fourth quarter and full year 2018 financial results, reporting strong sales growth for its bioenergy segment. Overall the company’s sales grew by 4 percent organically when compared to 2017.

Sales for the bioenergy segment grew by 12 percent organically for the full year when compared to 2017. For the fourth quarter alone, sales for the segment were up 5 percent when compared to the same period of the previous year.

“2018 was a very good year for our Bioenergy business supporting decarbonization of transport,” said Tina Sejersgård Fanø, executive vice president of agriculture and bioenergy at Novozymes, during an investor call. “For the full year we delivered 12 percent organic sales growth, which came on top of a strong 11 percent growth in 2017. The fourth quarter was, as expected, a bit softer with 5 percent organic growth driven by lower ethanol volumes and a tough comparison from Q4 2017.”

Novozymes said strong growth within enzymes for conventional biofuels continued throughout 2018, driven by broad technology offerings and tailored customer solutions. “Growth was driven by a strong momentum due to our broad technology base, the launch of our yeast products—Innova Drive and Lift—for conventional biofuels, and good performance in Latin America with producers expanding into corn-based ethanol production,” Sejersgård Fanø said.

The company estimates U.S. and global ethanol production was up approximately 1 percent in 2018 when compared to the previous year. During the fourth quarter, however, production was down an estimated 3 percent. Novozymes noted ethanol producer margins were under pressure, and inventory levels were elevated.

Moving into 2019, Novozymes said organic sales growth for its bioenergy sector is expected to be driven mainly by increased penetration from innovation as well as volume growth outside the U.S. market. The company currently expects U.S. ethanol production this year to be down slightly when compared to 2018, with ethanol inventory levels expected to remain high this year. Novozymes currently expects high-single-digit growth in bioenergy for the full year.

Sejersgård Fanø also discussed the potential of increased biofuel use, including the potential of E15 in the U.S. “We´re happy to see continued discussions supporting expanded use of biofuels,” she said. “In the U.S. we are awaiting clarity on E15, which is expected sometime before summer. In Brazil, the RenovaBio framework should support the continued expansion of corn-based ethanol production. China is investing in new capacity, and the REDII directive has been adopted in the EU, with Member States now working on the implementation process.”

In addition to bioenergy, Novozymes also operates segments dedicated to household care, food and beverages, agriculture and feed, and technical and pharma. Overall, the company reported 4 percent organic sales growth for 2018, with 2 percent organic sales growth for the fourth quarter. For the current year, Novozymes expects to achieve organic sales growth of 3-6 percent.

Read the original article: Novozymes Reports Significant Growth in Bioenergy Sales for 2018

Etihad Flies First Flight Using Part Biofuel

January 16, 2019

By Binsal Abdul Kader

Abu Dhabi: Etihad Airways has flown the first commercial flight partially fuelled by locally produced biofuel derived from plants grown in saltwater, which reduces carbon emissions, officials announced here on Wednesday.

The successful flight of the Etihad Airways Boeing 787 powered by GE’s GEnx-1B engines from Abu Dhabi to Amsterdam on Tuesday marked a major milestone, signalling the potential of large scale commercial production of biofuel in the UAE, which will cater to growing global demand for alternative aviation fuel, they said at a press conference on the sidelines of the Abu Dhabi Sustainability Week (ADSW).

The officials of the Sustainable Bioenergy Research Consortium (SBRC), a non-profit entity established by Masdar Institute that is part of Khalifa University of Science and Technology, said the initiative would also address food security in the UAE as seafood is also produced through aquaculture as part of the process.

The initiative named the Seawater Energy and Agriculture System (SEAS) supports the aviation sector, the oil and gas industry, food production and the creation of a new agricultural alternative in the UAE.

“Deep decarbonisation of energy-intensive industries has a ripple effect on food security and climate action. Clean, alternative aviation fuels are an innovative and sustainable solution to significantly reducing harmful carbon emissions. The UAE is proud to be a pioneer in this domain,” said Dr Thani Bin Ahmad Al Zeyoudi, Minister of Climate Change and Environment.

The biofuel fuel for the flight was derived from oil in Salicornia plants grown on the two-hectare farm in Masdar City as part of the SEAS, the world’s first desert ecosystem designed to produce fuel and food in saltwater. Fish and shrimp raised at the facility provide nutrients for the plants as well as contribute to the UAE’s food production. The system is expected to scale up to 200 hectares in the move towards full-scale commercial implementation in the next few years.

Mariam Bint Mohammad Saeed Hareb Al Muhairi, Minister of State for Food Security, said it is an important specialised initiative under the aquaculture umbrella, with the UAE recognising that this sector utilises the region’s most precious resource. “We have [enough] three S: sun, sea and sand.”

She pointed out that the UAE has established its aquaculture sector with an investment of more than Dh100 million to develop hatcheries and fish farms.

Tony Douglas, Group Chief Executive Officer Etihad Aviation Group, said the project has successfully proved a concept that is local, viable, cost-effective and sustainable.

The biofuel is blended directly with jet fuel and does not require any modifications to aircraft, engines or airport fuelling delivery systems.

The initiative utilises the oil and gas industry’s existing refining infrastructure. This has the potential to become an important new option for sustainable aviation fuel in the future.

Biofuel is derived from salt-tolerant halophyte plants that are grown at the pilot facility in Abu Dhabi, which became operational in 2016. These plants thrive in desert conditions and do not require fresh water or arable land.

After wastewater from the fish fertilises the plants, it is diverted into a cultivated mangrove forest. This further removes nutrients and provides valuable carbon storage before the naturally filtered and treated effluent is discharged back into the sea.

Abu Dhabi National Oil Company (Adnoc)-Refining has provided the expertise and infrastructure for refining of the seed oil to meet stringent jet fuel standards. Adnoc distribution helped blending and delivery of the biofuel to the aircraft.

Abu Dhabi Vegetable Oil Company (ADVOC) offered essential assistance in the pre-treatment phases.

Approximately 160,000 passenger flights have flown on a blend of sustainable and traditional jet fuel since the first biofuels were certified for commercial use in 2011. Sustainable aviation fuel represents a significant opportunity to help aviation meet its goals to cap the growth of carbon emissions by 2020 and cut levels to half of what they were in 2005 by 2050.

Read the original article: Etihad Flies First Flight Using Part Biofuel

The Netherlands Will Transfer All Military Aviation to Biofuel

January 23, 2019

By Svilen Petrov

The Ministry of Defense of the Netherlands has announced plans to gradually transfer all the country’s military aviation on biofuel. As a first step, the military began to purchase biofuels for the air base in Leeuwarden, which will fuel all F-16 Fighting Falcon fighters.

Military aviation is the largest consumer of fuel in the world. It is believed that the transfer of fighters to biofuels will significantly reduce emissions of carbon dioxide, one of the main factors of global warming. In particular, the United States is engaged in a gradual transfer of all ships and military aircraft to biofuel.

According to the Netherlands Ministry of Defense, in the middle of January 2019, 400,000 liters of biofuel produced by the American company World Energy from kitchen fats were delivered to the air base in Leeuwarden. Currently, all the F-16 fighters assigned to the airbase fly on a fuel mixture of 5% of biofuels and 95 percent of conventional jet fuel.

The aircraft perform test flights on the basis of which the proportion of biofuels in the mixture will increase. According to the plan of the Dutch military department, by 2030, all military aircraft of the country will fly on a fuel mixture with a 20% addition of biofuels, and by 2050 – with a 70% content of alternative fuel.

Currently, the Netherlands Air Force has 92 aircraft, including 68 F-16AM / BM fighter jets, and 77 helicopters.

The decision to transfer all airbase fighters to a mixture of hydrocarbon and biofuels was taken on the basis of tests conducted in 2018. Then one of the F-16 airbase in Leeuwarden for two weeks was flying in a mixture with a 5% content of biofuels.

Read the original article: The Netherlands Will Transfer All Military Aviation to Biofuel

Ethanol Production Back Up

January 21, 2019

By Cindy Zimmerman

Weekly U.S. ethanol production recovered after the holidays to more like what we were seeing throughout 2018.

According to Energy Information Administration data analyzed by the Renewable Fuels Association, ethanol production for the week ending January 11 increased over five percent to the largest volume in six weeks at an average of 1.051 million barrels per day (b/d)—or 44.14 million gallons daily. The four-week average for ethanol production rose fractionally at 1.026 million b/d for an annualized rate of 15.73 billion gallons but was still 1.8% lower than the level a year ago.

There were zero imports recorded for the ninth week in a row. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of October 2018.)

Average weekly gasoline supplied to the market pulled back 1.9% at 8.565 million b/d (359.7 million gallons per day), equivalent to 131.30 billion gallons annualized and the lowest level since February 2017. Refiner/blender input of ethanol rebounded 5.8% (up 47,000 b/d) at 862,000 b/d—equivalent to 13.21 billion gallons annualized.

Given the lackluster volume of gasoline supplied to the market, daily ethanol production increased to a 58-week high of 12.27% of daily gasoline supplied.

Read the original article: Ethanol Production Back Up

Page 42 of 92