In the News
December 7, 2018
News Release
U.S. ethanol exports totaled 175.4 million gallons (mg) in October, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). This is nearly double (up 95%) September exports and the third highest monthly total on record—only surpassed by February (218.7 mg) and March (215.1 mg) of this year. Shipments were bolstered by the strongest demand for American ethanol in six months by Brazil.
A widespread shuffling of customers occurred in October with Brazil bumping Canada to capture the position of top U.S. customer. Brazil imported 54.5 mg—up 49.1 mg and representing 31% of U.S. export sales—as the sugarcane harvest began to wind down. Canada decreased its offtake by 12%, importing 30.7 mg or 18% of U.S. ethanol shipments in October. India boosted its purchases of U.S. ethanol to a record 29.1 mg for a 17% hold on American ethanol exports. Sales to these three countries represent two-thirds of all shipments in October. The Netherlands (10.4 mg, down 10%), the Philippines (10.2 mg, up from 1.1 mg), South Korea (7.7 mg, up 4%), and the United Arab Emirates (7.7 mg, up 4%) were other top markets. Additionally, exports to Peru doubled in October to 6.2 mg in advance of the announcement of countervailing duties on U.S. ethanol by the Peruvian government in November. Total year-to-date U.S. ethanol exports rose to 1.42 billion gallons—30% higher than the same period last year, and already a record with two months left to go in the year.
American producers shipped 91.4 mg of denatured fuel ethanol in October, a 35% increase and the highest volume on record. Despite a 7% decrease from the prior month, Canada retained a sizable lead as our top customer at 30.4 mg, or 31% of our export market for denatured product. Brazil purchased 13.0 mg (14% of sales), the second-largest monthly volume of U.S. denatured fuel ethanol on record for the country. The Netherlands (9.0 mg, or 10% market share), the United Arab Emirates (7.7 mg), South Korea (6.6 mg), and Peru (6.2 mg) were other significant markets.
October exports of U.S. undenatured fuel ethanol were 79.7 mg, shooting back up after dipping to 13.4 mg in September. Brazil accounted for more than half of the market (41.5 mg, or 52%) and India took a record 24.6 mg for 31% of global sales of U.S. undenatured ethanol. Other key markets were the Philippines (5.3 mg, or 7% of U.S. sales), Saudi Arabia (a record 2.5 mg), Mexico (1.9 mg), France (1.3 mg), and the Netherlands (1.3 mg).
October sales of ethanol for non-fuel, non-beverage purposes backed off 54% from the prior month to 4.3 mg. For the first time, Sweden was the lead customer of U.S. exports of undenatured non-fuel product with purchases of 1.7 mg (representing 91% of global product sales in October). Remaining international sales were parsed out to another fourteen countries. Most export sales (98%) of American denatured non-fuel ethanol crossed the border into Canada, equivalent to 2.4 mg.
The United States imported 31.6 mg of undenatured ethanol from Brazil in October. This is the largest monthly volume to enter in five years. Total year-to-date U.S. ethanol imports stand at 57.0 mg—essentially all sourced from Brazil. This is 2% ahead of last year at this time.
October exports of U.S. dried distillers grains with solubles (DDGS)—the main animal feed co-product generated by dry mill ethanol plants—were 1.018 million metric tons (mt). While shipments tapered slightly (1%), this was the fifth straight month that global demand breached 1 million mt. Mexico was again our top customer with 16% of global shipments, equal to 159,985 mt for a 7% increase over September. Asia remained a key destination for U.S. DDGS with the largest volumes heading to Vietnam (112,948 mt, up 1%), Indonesia (96,379 mt, up 43% to a record high), Thailand (92,959 mt, down 1%), and South Korea (81,351, down 22%). The United Kingdom and Ireland purchased a combined total of 105,224 mt, with the UK capturing record monthly imports (58% higher from September). Canada (62,982, up 13%) and New Zealand (a record 42,503 mt, up 19%) were other sizable markets. Year-to-date U.S. DDGS exports are 9.98 million mt, implying an annualized total of 11.97 million mt. If realized, U.S. distillers grains exports would capture the second-largest annual volume on record.
Read the original article: Burgeoning U.S. Ethanol Exports Third Highest on Record; Global Demand for U.S. DDGS Remains Strong
December 6, 2018
By John Perkins
U.S. ethanol production last week hit a multi-month high.
The U.S. Energy Information Administration says production averaged 1.069 million barrels a day, up 21,000 on the week for the highest daily average since late August. The EPA last week maintained the conventional portion of the Renewable Fuel Standard, but some in the ethanol industry criticized the agency for not addressing small refinery hardship waivers, which have been used to skirt RFS requirements. Recent trade discussions with China, Canada, and Mexico are expected to lead to improvements in export demand for U.S. ethanol.
Stocks were up 100,000 barrels on the week at 23.030 million barrels.
The USDA expects record corn use for ethanol demand this marketing year.
Read the original article: U.S. Ethanol Production Climbs
December 3, 2018
By Erin Voegele
A new proposal released by the Ontario government indicates the province could require gasoline to be blended with 15 percent ethanol as soon as 2025. The U.S. ethanol industry has applauded news of the proposal.
On Nov. 29, the Ontario Ministry of the Environment, Conservation and Parks released a made-in-Ontario environment plan that aims to protect the province’s air, land and water while reducing waste, lowering greenhouse gas (GHG) emissions and helping communities protect themselves from climate change.
The proposal, titled “Preserving and Protecting our Environment for Future Generations: A Made-in-Ontario Environment Plan,” includes a provision that indicates the province could “increase the renewable content requirement (e.g. ethanol) in gasoline to 15 percent as early as 2025 through the Greener Gasoline regulation, and reduce emissions without increasing the price at the pump, based on current ethanol and gasoline prices.”
Growth Energy, the U.S. Grains Council and Renewable Fuels Association have spoken out in support of Ontario’s adoption of E15. “As one of the largest markets for ethanol, this is a huge milestone for Canada and the people of Ontario,” said the three groups in a statement. “Ontario recognizes the important environmental, economic, and health benefits that ethanol provides and we look forward to seeing this plan become a reality by 2025.”
The RFA said it will continue to remain actively engaged in the development of provincial and national renewable fuel policies and regulations in Canada. Growth Energy noted, that in partnership with the USGC, it submitted comments to Canada’s Ministry of the Environment and Climate Change last year, urging them to look beyond E10 at higher blends like E15, and welcomed the commitment from the Ontario Province to move from a 5 percent blend to a 10 percent ethanol fuel blend by 2020.
According to Statistics Canada, gross sales of gasoline reached 16.89 billion liters (4.46 billion gallons) in Ontario during 2017. If ethanol accounted for 15 percent of that volume, it would represent a market of nearly 670 million gallons.
A comment period on the Made-in-Ontario Environment Plan is open through Jan. 28. Additional information, including a full copy of the plan, is available on the Ontario government website.
Read the original article: Ontario Could Require E15 as Soon as 2025
November 27, 2018
Press Release
A recent trial evaluating the use of Enogen® corn enzyme technology with ICM’s Selective Milling TechnologyTM and Fiber Separation TechnologyTM successfully demonstrated that the technologies work well together, providing synergies that can bring higher ethanol yield and more robust starch-fiber separations. The technologies were tested at Corn Plus, a Minnesota-based dry grind ethanol plant.
Enogen corn 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 grain, Enogen corn eliminates the need to add liquid alpha amylase. The product is rapidly gaining widespread acceptance because of the value it delivers to ethanol producers and the opportunity it provides corn growers to be enzyme suppliers for their local ethanol plants.
“Enogen grain works across a broad range of pH and temperatures, facilitating an unparalleled break in viscosity through unique enzyme activity and unmatched dosage rates,” said Dr. Miloud Araba, head of technical services for Enogen at Syngenta. “Breakthroughs in viscosity reduction can lead to unprecedented levels of solids loading, which directly contribute to increased throughput and yield, as well as significant cost savings from reduced natural gas, electricity and water use.1”
“SMTTM and FSTTM are two of ICM’s value-added, patented technology platforms,” said Steve Hartig, ICM VP of Technology Development. “Both technologies are designed to help maximize production and minimize operational expense. SMT maximizes the amount of starch exposed for conversion to ethanol and oil available for recovery while preserving fiber for higher value platform applications. FST is a progressive pre-fermentation system that removes fiber prior to fermentation, allowing more fermentable carbohydrates to be loaded into each batch for fermentation."
“Using Enogen corn, with its mode of action and high amount of expressed enzyme, brings a lower viscosity to the corn mash. The lower viscosity provides improved separation capability, leading to increased efficiencies when working in tandem with the SMTTM and FSTTM systems,” Hartig added.
To inquire about incorporating Enogen into a dry grind ethanol plant, contact Jeff Oestmann at This email address is being protected from spambots. You need JavaScript enabled to view it." For more information about Enogen corn hybrids, contact a Golden Harvest® Seed Advisor or NK® retailer or visit www.Enogen.com.
For more information about implementing ICM’s SMTTM or FSTTM system, contact Jeff Scharping at This email address is being protected from spambots. You need JavaScript enabled to view it." or (316) 977-6833.
Join the conversation online – connect with Syngenta at Syngenta-us.com/social.
1 Based on Enogen trial and commercial results at Midwest ethanol plants.
About Syngenta
Syngenta is a leading agriculture company helping to improve global food security by enabling millions of farmers to make better use of available resources. Through world class science and innovative crop solutions, our 28,000 people in over 90 countries are working to transform how crops are grown. We are committed to rescuing land from degradation, enhancing biodiversity and revitalizing rural communities. To learn more visit www.syngenta.com and www.goodgrowthplan.com. Follow us on Twitter at www.twitter.com/Syngenta and www.twitter.com/SyngentaUS.
About ICM, Inc.
Established in 1995 and headquartered in Colwich, Kan., with a regional office in Brazil, ICM provides innovative technologies, solutions, and services to sustain agriculture and to advance renewable energy, including ethanol and feed technologies that will increase the supply of world protein. By providing proprietary process technologies to over 100 facilities globally with a combined annual production of approximately 8.8 billion gallons of ethanol and 25 million tons of distiller grains, ICM has become a world leader in bio-refining technologies. For additional information, please visit http://www.icminc.com.
Read the original press release: Enogen Corn from Syngenta Combined with SMT and FST Technologies from ICM Help to Provide Added Value to Ethanol Production at Minnesota Plant
November 28, 2018
By Cindy Zimmerman
Al-Corn Clean Fuel has been recognized by the Minnesota FFA Foundation for the company’s support of programing throughout southeast and southern Minnesota. The partnership between Al-Corn Clean Fuel and the Minnesota FFA Foundation allows for scholarship funds to assist 58 FFA chapters in select programs, including service projects.
“The leadership skills acquired by the next generation of agricultural leaders through organizations such as FFA will benefit our local communities well into the future,” said Rod Jorgenson, Chairman of the Board for Al-Corn Clean Fuel.
“The need to build partnerships in support of local and state agricultural education programs continues to grow as budgets are increasingly tight,” said Val Aarsvold, executive director of the Minnesota FFA Foundation. “It’s a win-win partnership as our programs receive valuable support to prepare future employees for agricultural careers and develop skills to provide leadership for their local communities.”
Read the original article: Al-Corn Clean Fuel Support MN FFA
November 28, 2018
By Jarrett Renshaw, Humeyra Pamuk
The Trump Administration has temporarily frozen a program meant to exempt small oil refineries in financial distress from the U.S. biofuels law, as it reviews the scoring system to evaluate applications, according to two sources familiar with the matter.
The review means changes are likely to the program, which has become a lightning rod of controversy between the rival oil and corn industries since the Environmental Protection Agency vastly increased the number of waivers for last year.
Under the U.S. Renewable Fuel Standard, oil refiners must increasingly blend biofuels like corn-based ethanol into their fuel each year or purchase blending credits from those that do. The regulation was passed in 2005 to help farmers and cut fuel imports.
But small oil refineries can be exempted from the standard if they prove that compliance would cause disproportionate hardship. The EPA granted 29 such waivers for the 2017 compliance year, up from 14 in 2015 and 20 in 2016.
The biofuels industry and lawmakers representing farm states want the program halted, saying the expansion hurt farmers by eroding demand for ethanol. But refiners consider the program a lifeline to small facilities and have won lawsuits accusing the EPA of being too stingy with waivers.
The two sources, who requested anonymity to discuss the matter, said over the past week that the Trump administration was delaying consideration of any new waivers while the Department of Energy reviews its scoring system for applications. The department evaluates waiver requests and provides recommendations to the EPA.
That has placed on hold seven applications for the 2017 compliance year, and 15 applications for the 2018. Typically, the EPA waits until the latter half of the year to begin reviewing applications because applicants need to demonstrate financial hardship using hard figures for their facilities.
An EPA official confirmed the review. “I think what DOE needs to do is tighten up their approach and we need to do the same,” said the official, who asked not to be named. “I honestly don’t know where they’ll end up and whether they’re going to make any changes at all.”
Whatever the outcome, it could have a dramatic impact on the multibillion-dollar credit trading market, which has been hard-hit by the waiver expansion.
“This is a promising and long overdue development that shows Acting Administrator (Andrew) Wheeler cares about righting the ship at EPA after the prior administrator’s mismanagement and poor leadership. There’s no good reason multibillion-dollar oil refineries making record profits should receive so-called ‘hardship’ waivers exempting them from following the law,” U.S. Republican Senator Chuck Grassley, of Iowa, said in a statement on Wednesday.
Credits, called Renewable Identification Numbers or RINs, have plummeted in value from over $1 to 10 cents this week as reports emerged of the number of EPA waivers granted last year. Some of those went to facilities owned by big, profitable companies like Chevron Corp and Andeavor, which recently merged with Marathon Petroleum Corp, Reuters has reported.
That cut in credit prices has saved hundreds of millions of dollars in compliance costs for merchant refiners that lack enough biofuel blending facilities, like Valero Energy Corp, PBF Energy Inc and Carl Icahn’s CVR Energy Inc.
The issue has placed President Donald Trump in a tough spot between two key constituencies, trying to support the agriculture industry slammed by the impact of his trade war with China while also keeping costs down for the oil industry.
Biofuel supporters contended the expansion of the waiver program was politically driven by former EPA Administrator Scott Pruitt, an Oklahoman considered an oil industry ally. Pruitt resigned in July in a flurry of ethical scandals, and has been replaced by Andrew Wheeler, a former coal lobbyist.
“Under the last EPA chief, the waiver program became a cookie jar open to every well-connected refinery owner, and we’re seeing the results across rural America with biofuel plants closing their doors or idling production,” said Brooke Coleman, head of the Advanced Biofuels Business Council.
The EPA has blamed the program’s expansion on recent federal court rulings, triggered by challenges filed by small refining companies Holly Frontier and Sinclair, which said the agency was using too strict of a test to determine disproportionate hardship.
All hardship applications are first handled by the Energy Department, which determines whether compliance would lead to disproportionate impact, or threaten a refinery’s viability. The final decision on applications rests with the EPA.
Read the original article: Exclusive: EPA Refinery Biofuel Waiver Program on Hold Pending Review - Sources
November 20, 2018
By Chris Prentice, Jarrett Renshaw
The U.S. Environmental Protection Agency granted oil major Chevron Corp a 2017 hardship waiver from U.S. biofuel laws for its Utah refinery earlier this year, according to a source familiar with the company’s operations.
Chevron, which reported a net income of $9.2 billion in 2017, becomes the largest known company to be awarded a hardship waiver from the Renewable Fuel Standard (RFS), which requires refiners to blend biofuels like ethanol into their fuel pool or buy compliance credits from competitors that do.
The waivers, which have grown significantly under the Trump administration, have angered corn-belt farmers who say it hurts demand for ethanol and other biofuels.
“When an oil company whose net profits surpass the total value of the Iowa corn crop claims it is experiencing ‘hardship,’ you know we’ve reached a new level of absurdity,” said Geoff Cooper, CEO of the Renewable Fuels Association.
California-based Chevron declined to confirm whether it received a small refinery hardship waiver, but did say that seeking them can level the playing field.
“EPA has acknowledged that it has granted several small refinery exemptions from the RFS. Any Chevron refinery not exempted from the RFS would be at a disadvantage in the highly competitive markets where we operate,” the company said in an emailed statement.
The EPA did not immediately respond to requests for comment.
Refineries with a capacity less than 75,000 barrels-per-day can receive waivers from the RFS if they prove compliance would cause them disproportionate hardship. Chevron’s Salt Lake City, Utah, plant is 54,000 barrels-per-day.
The EPA, under President Donald Trump, expanded the waiver program, awarding 29 exemptions for the 2017 calendar year, up from 19 in 2016 and just seven in 2015, EPA data shows.
The EPA has attributed the program’s expansion to a lawsuit brought by two oil refiners who challenged the EPA’s denial of their waiver request. A federal judge ruled the EPA was using too narrow of a test to evaluate applications.
Biofuel backers say the expansion was politically driven by former EPA administrator Scott Pruitt, who sought ways to lower compliance costs for refiners. The Chevron approval was granted under Pruitt, the source said.
The surge in hardship waivers has pummeled the price for compliance credits some refiners must buy.
Reuters previously reported that Chevron, along with Exxon Mobil Corp, sought a hardship waiver from U.S. biofuel laws.
Exxon Mobil’s application status was unclear.
Read the original article: Exclusive: Chevron Granted Waiver from U.S. Biofuel Laws at Utah Plant - Source
November 17, 2018
By Tom Cherveny
One of Benson's largest employers is looking to expand its plant by developing a second business operation that will create new jobs and add value to the crops raised by its member owners.
The question is will the city of Benson provide the keys to the former Fibrominn facility to make it all possible.
That will be the topic Monday, when representatives of Chippewa Valley Ethanol Company and BioPro meet with the Benson City Council.
"It's a win, win, win for everybody,'' said Chad Friese, general manager of Chippewa Valley Ethanol. He will join Truman Homme, CEO and board chair of BioPro Power of Spicer, in asking the City Council to support their request to purchase the former power plant building and its combustion system.
The two companies are interested in about 8.41 acres of the 77-acre site. They are not interested in the haul building or administrative office and trucking facility that Brightmark Energy, of San Francisco, California, is seeking to acquire.
Brightmark Energy wants to produce renewable natural gas at the site by using animal and plant wastes from nearby dairies and possibly other farms in an anaerobic digester it would construct there.
BioPro and Chippewa Valley Ethanol believe there is plenty of room at the site for the two operations to co-locate, making it possible for both entities to create new jobs and economic activity for the area.
The problem is this: Xcel Energy has offered to sell the site to Brightmark, which has the support of the city of Benson in its quest to acquire the property for its project.
"Essentially, at this point we're out,'' Friese said. Xcel had declined a bid by Chippewa Valley Ethanol Company and BioPro to acquire the site.
Xcel Energy had purchased and closed the Fibrominn operation, which produced electricity by using turkey manure and wood chips as a fuel source. Xcel Energy was obligated to buy the biomass-produced power as part of an agreement to continue storing spent nuclear fuel. Last year, the company persuaded legislators and the Public Utilities Commission to allow it to buy out the plant — by that time known as Benson Power — and save ratepayers millions of dollars by doing so, while continuing to support renewable energy by using solar- and wind-generated electricity.
Xcel Energy is obligated to dismantle and remove the Fibrominn power plant, which is very likely to happen if Brightmark become the site's sole occupant. Brightmark is not interested in utilizing the power plant whatsoever.
BioPro wants the plant, but it is also offering to take on the responsibility for dismantling it if the proposal to produce steam from corn stover does not work, according to Homme and Friese.
The companies do not want the turbine used to produce electricity; Xcel could sell it, they added.
BioPro has U.S. and Chinese patents for technology that allow it to reliably combust corn stover as a fuel to produce steam.
And it's steam that Chippewa Valley Ethanol Company wants. Friese said the ethanol producer is at the end of the natural gas pipeline. It uses natural gas to produce steam for its operations. It cannot purchase additional natural gas to make possible a desired expansion of its operations from 55 million gallons a year to 120 million gallons without making very costly investments in expanding the natural gas pipeline serving the area.
In contrast, the combustion plant at the Fibrominn plant is available at a bargain basement price. With a low capital outlay, the ethanol company can adapt the plant to produce the steam it needs for an expanded operation.
It would use only corn stover as fuel, all of it harvested from the fields of its member owners. The cooperative has over 900 members, and a number of them had been interested in the value-added opportunity of harvesting a portion of the corn stover as fuel.
Friese said Chippewa Valley Ethanol Company had previously analyzed the costs and logistics of using corn cobs and stover as fuel when it built a gasifier in the early 2000s. It was looking at ways to reduce its reliance on natural gas.
That and other research also showed that periodically harvesting a portion of the corn stover in fields can benefit corn yields, he said.
The gasification approach cannot compete with natural gas at today's prices, according to Friese. Additional analysis is needed, but it appears that straight combustion of corn stover in a low-cost facility using BioPro's technology would work economically, he said.
The city of Benson is believed to be in the driver's seat in terms of what happens to the Fibrominn site. Homme and Friese said they hope that support from the city would lead Xcel to reconsider and allow Chippewa Valley Ethanol Company and BioPro to co-locate on the site with Brightmark.
They are hoping that support can be found before Xcel begins to dismantle the Fibrominn power facility and that asset is lost. "Once it's gone, it gone,'' Homme said.
Read the original article: CVEC, BioPro Seek Benson's Support for Steam Energy Proposal on Portion of Fibrominn Property
More...
November 20, 2018
Press Release
There has been a media blitz lately by the oil industry saying that ethanol demand has been unaffected by the Environmental Protection Agency’s (EPA) rampant grants of Renewable Fuel Standard (RFS) exemptions to small refineries. Recently, even some in the agriculture community have bought into these claims. Don’t be fooled.
Under former EPA Administrator Scott Pruitt, 19 small refinery exemptions were granted retroactively for the 2016 compliance year, and 29 were doled out for 2017, compared to seven or eight in each of the three previous years. The EPA reinstated RFS credits known as renewable identification numbers (RINs) to these refiners, which they can use for compliance rather than blending physical biofuels.
As shown in a new analysis by the RFA, these large-scale exemptions have impacted both components of ethanol demand: quantity and price.
The impact on quantity is reflected in the ethanol “blend rate,” the average inclusion level of ethanol in the nation’s gasoline supply. The blend rate exceeded 10% in all but three months in 2017, and it hit a record 10.8% in January 2018. However, it slumped starting in February 2018, as exempted refiners were flush with reinstated RINs, and as rumors and press reports regarding the exemptions made their way into the market. The blend rate fell to 9.8% in February, ticked down to 9.7% in March and receded further 9.5% in April. Between February and June, the blend rate exceeded 10% in only one month.
Additionally, as alluded to above, small refinery exemptions have impacted ethanol prices along with ethanol consumption. The RFA conducted a basic regression analysis to determine the effect on prices. The results showed that ethanol prices were 8 cents/gallon lower than they otherwise would have been in February, and that the impact grew to 34 cents/gallon by June and stayed at that level throughout the summer.
Every gallon produced and sold by the U.S. ethanol industry has been priced lower than would have been the case in the absence of the exemptions. There were 9.4 billion gallons of ethanol produced between February and August (the latest month for which comprehensive supply/demand data are available). By multiplying production by the price impact in each month, it can be determined that the industry’s revenues were reduced by $2.3 billion during that time period.
Moreover, the impact on the ethanol industry continues. Largely as a result of the exemptions, the EPA has estimated that RIN inventories at the end of 2018, which will be available to meet 2019 RFS obligations, will swell to 3.06 billion. This is an increase of 840 million RINs (nearly 40%) from the agency’s estimate of inventories carried over into 2018. To the extent that refineries have “kept their powder dry” by using ethanol and other biofuels in recent months, they will be able to use their RIN inventories for compliance when expedient in the future.
In summary, small refinery exemptions have had a marked effect on ethanol consumption and a massive impact on industry revenues. Don’t be fooled by commentary and social-media posts that fail to show the full picture.
Read the original release: Demand Destruction from Small Refinery Exemptions is Clear and Continuing
November 13, 2018
by Humeyra Pamuk
The U.S. Environmental Protection Agency (EPA) may issue fewer biofuel waivers to small refineries under Acting Administrator Andrew Wheeler than it did under its previous leadership, Republican Senator Chuck Grassley of Iowa said on Tuesday.
“I sense that Wheeler has a feeling that (former Administrator Scott Pruitt) was very liberal on his issuing of waivers,” Grassley told a conference call.
Asked if he thought such an attitude change could lead to fewer waivers, Grassley, one of the most powerful voices for U.S. agriculture interests, said: “Yes.”
The small refinery waiver program is among the most controversial issues dividing the U.S. corn industry and Big Oil. Under the U.S. Renewable Fuel Standard (RFS), refiners are required to blend increasing amounts of biofuels like corn-based ethanol into the nation’s fuel supply each year to help expand the market for farm products.
But small refineries can apply for waivers if they demonstrate that complying would cause them hardship.
Under Pruitt, the number of waivers granted to small refiners soared, angering the biofuels industry which argued the program was being used to benefit energy companies while undermining demand for corn-based fuel.
Wheeler took over the EPA in July after Pruitt resigned in a flurry of ethical controversies.
While Wheeler has said little about his approach to the small refinery waiver program, he has said he would like to introduce reforms to the RFS that can please both the energy and agriculture industries.
At Trump’s direction, the EPA is currently working on a proposal to expand sales of higher ethanol gasoline blends year round, a move meant to help corn growers stung by soft domestic demand and a loss of export markets from trade disputes.
Read the original article: Iowa Senator Says Expect Fewer Biofuel Waivers From Wheeler's EPA
November 14, 2018
By Evan Williams
Toyota is sending an ethanol hybrid to market and the executive responsible for it says that the project is exceeding all expectations.
Brazil is the biggest producer of ethanol in the world. The country has a largely sustainable biofuel market thanks to sourcing from sugar cane instead of grain. Every car in the country built after 1976 can run on at least some mix of gas and biofuel. Most are flex-fuel cars that can work on anything from E20 to pure ethanol. So it makes sense to build a flex-fuel hybrid for the market.
“The soonest I can put it in production, I’m going to do it,” Toyota’s Latin America CEO Steve St. Angelo told Automotive News at an auto show in Brazil last week.
“We need to be competitive,” St. Angelo said. “Our home countries are not going to give the money just because we are nice guys in Brazil. You have to have a good business case.”
Toyota’s current hybrids, like the Prius, can run on the usual E10 mixture found in North America but aren’t capable of handling a higher mix of the alternative fuel. In addition to different engine fueling and ignition calibration issues, more ethanol can cause problems with seals and rubber and plastic fuel system components. St. Angelo has his team working on a flex-fuel version that will fix that issue. Combining an electric motor and an engine that can run on ethanol. That has the potential to further reduce tailpipe emissions.
The automaker revealed the hybrid flex-fuel prototype in Brazil last March. The prototype was a Prius with a combustion engine and system modified for the biofuel. Toyota says that the system significantly lowers CO2 emissions from the vehicle. The sugarcane-based ethanol made in Brazil helps further improve the emissions reduction.
So how soon is soonest? It shouldn’t take more than three years to bring the car to market, St. Angelo said. He added that the company isn’t spending big money on a new model, but is making tweaks and calibration changes. Presumedly to an existing model.
Read the original article: Toyota Bringing an Ethanol Hybrid Car to Market
November 8, 2018
By Erin Voegele
On Nov. 8, the USDA released the November edition of its World Agricultural Supply and Demand Estimates report, forecasting corn production for 2018-’19 at 14.626 billion bushels, down 152 million bushels from October on a reduced yield forecast.
Feed and residual use is lowered 50 million bushels to 5.5 billion bushels based on a smaller crop and higher prices. Exports are reduced 25 million bushels to 2.45 billion bushels based on expectations of increased competition from Ukraine. With supply falling more than use, the report forecasts corn ending stocks down 77 million bushels when compared to October, to 1.736 billion bushels. The forecast for ethanol and byproducts use is maintained at 5.65 billion bushels. The season-average corn price received by producers is raised 10 cents to a midpoint of $3.60 per bushel.
Globally, corn production is forecast higher for China, Ukraine, Argentina, Kenya, Moldova, and Russia. EU corn production is lowered, mostly reflecting reductions for Hungary, Poland and Germany. Corn exports are raised for Ukraine, Argentina, and Moldova. Imports are raised for the EU, Vietnam and Iran. Not including China, foreign corn ending stocks are higher than last month, mostly reflecting increases for Argentina, Iran, Paraguay and Vietnam.
Read the original article: USDA WASDE Maintains Forecast For Corn Use in Ethanol
November 8, 2018
By Gerardo Fortuna
The Intergovernmental Panel on Climate Change (IPCC) recently pointed out that the pace of transition in the transport sector deemed necessary for a 1.5C-consistent pathway must include more biofuels and electricity in transport’s energy mix.
The UN’s climate science body highlighted some benchmark indicators for sectoral changes in the supplementary materials attached to the major report that shocked the world one month ago (8 October).
As regards the transport sector, IPCC scientists indicated for 2020, 2030 and 2050 respectively a biofuels share of 2%, 5.1%, and 26.3% as good policy targets in order to follow the appropriate path in curbing emissions.
The report also said that electricity’s involvement in the transport mix should increase to 1.2% in 2020, 5% in 2030 and 33% in 2050, meaning that by 2030 biofuel-powered vehicles would still be as important as e-cars.
“What the IPCC projects on 1.5°C-consistent transport pathways can be derived from their figures on a low overshoot pathway,” Zoltán Szabó, a sustainability consultant specialised in bioenergy told EURACTIV.
Szabó said the IPCC singled out electromobility and biofuels as the two major drivers of transport sector decarbonisation in 2020, 2030 and 2050, and it concludes that biofuels will displace more oil in 2020 and 2030 than renewable electricity will, and has these two solutions roughly equal in scale by 2050.
“Electromobility is on the rise but much of it will be powered by fossil fuels. A derived chart shows that biofuels, with ethanol being the most prominent biofuel, will have a larger role in the critical next 12 years than renewable energy powered electromobility. IPCC represents science, so this is a powerful vision,” he stated.
In the latest International Energy Agency (IEA) market forecast published on the same day as the IPCC report, modern bioenergy is expected to become the fastest-growing renewable sources between 2018 and 2023.
Bioenergy will remain the largest source of renewable energy also because of its widespread use in heat and transports, sectors in which other renewables currently play a much smaller role, the IEA’s report said.
Wastes and residues will offer low lifecycle greenhouse gas (GHG) emissions and mitigate concerns over land-use change, representing huge potential for the entire bioenergy sector and improving waste management and air quality as well, according to the IEA.
The European renewable ethanol association ePure shares the view of IEA and particularly on the significant “untapped potential” of biofuels in fighting climate change.
“The current Clean Mobility proposal on reducing CO2 emissions from cars ignores the important contribution that low-carbon liquid fuels can make to decarbonisation now and in the future,” Secretary-General of ePURE Emmanuel Desplechin told EURACTIV.com
He added that politicians tend to focus on the latest miracle cure, represented in the case of transport decarbonisation by the e-cars, which are important but not the only answer to the question of emissions reduction.
Nor are e-cars a major factor at the moment. “People are still buying cars that run on liquid fuel, and those cars will be on the road for a long time,” he said, adding that the best way to decarbonise these car fleets is to use low-carbon liquid fuel, like renewable ethanol.
“We need to get ready and all options need to be mobilised,” Desplechin concluded.
“Policymakers in Brussels think about bicycles and e-cars in Norway and the Netherlands, but they ignore the real world of Poland, Italy, Ireland etc… where cycling and e-cars are purely theoretical,” said James Cogan, a policy analyst at the operator of Ethanol Europe Renewables Ltd (EERL), Europe’s largest biorefinery.
Thinking that electric vehicles powered by wind and sun have already solved the problem in transport is a dangerous solution, according to him.
He said the world’s huge fleet of conventional vehicles is growing 3%-6% each year, adding hundreds of millions of additional carbon emitting engines to the problem.
“There is a big risk that COP24 delegates in Katowice in December will not realise this,” he said.
Bioenergy can be used effectively on a scale that makes a real contribution to curbing emissions, but it has a material cost and impact because it requires substantial volumes of biomass to be converted to energy.
First generation biofuels made from food crops are currently not taken into account by the EU biofuels policy due to their significant land use impacts.
They are not considered a solution anymore, whereas “sustainable advanced biofuels from waste and residues can help decarbonise transport, provided they deliver significant GHG savings and comply with strict sustainability criteria,” said Laura Buffet from the NGO Transport and Environment (T&E).
“However, the quantities of advanced biofuels available at sustainable level will remain very limited,” she added.
The NGO is well known for underpinning e-mobility and it recently accused fossil gas of being as bad for the climate as diesel, petrol and marine fuel in a report.
“Renewable electricity from solar and wind is the cleanest source of fuel and should be the preferred pathway to decarbonise transport,” Buffet said.
According to T&E, renewable electricity is also much more efficient in terms of land use than conventional biofuels, since one football pitch of ethanol crops can power 2.6 cars for a year.
According to EERL’s Cogan electricity and biofuel can coexist and complement each other.
“The most flexible vehicle on the planet is the Toyota hybrid flex-fuel. It runs on four types of power (renewable electricity, fossil electricity, fossil petrol, and renewable ethanol) with seamless flexibility, in any combination in any moment,” he said.
For ePure as well, the two sources must coexist because people will still be driving cars with combustion or hybrid engines for a long time.
“The public wants results now to lower emissions. They shouldn’t have to wait decades for electric vehicles to become more commonplace,” said ePure’s Desplechin.
According to T&E’s Laura Buffet, renewable electrofuels produced with additional renewable electricity and complying with strict sustainability safeguards could help reduce emissions in sectors like aviation which are harder to electrify.
Read the original article: Electricity and Biofuels Needed in Tandem to Meet Climate Goals, UN Report Says
November 7, 2018
By Erin Voegele
The U.S. Energy Information Administration has released the November edition of its Short-Term Energy Outlook, maintaining its October forecast for 2018, but increasing its ethanol production forecast for next year.
The EIA currently predicts the U.S. will produce an average of 1.05 million barrels of ethanol per day this year, unchanged from its October STEO. Production averaged 1.04 million barrels per day last year. On a quarterly basis, the EIA now predicts that ethanol production will average 1.05 million barrels per day during the third quarter of 2018, up from its October prediction of 1.04 million barrels per day for the quarter.
For 2019, the EIA now predicts ethanol production will average 1.04 million barrels per day, up from the 1.03 million barrel per day prediction included in the October STEO. On a quarterly basis, production is expected to average 1.03 million barrels per day during the first quarter of 2019, increase to 1.04 million barrels per day during the second quarter, fall to 1.03 million barrels per day during the third quarter, and return to 1.04 million barrels per day during the fourth quarter.
Ethanol consumption is currently expected to average 940,000 barrels per day in 2018, level with 2017 consumption. Next year, consumption is expected to increase to 950,000 barrels per day.
The EIA’s most recent weekly data shows ethanol production averaged 1.068 million barrels per day the week ending Nov. 2, up from 1.059 million barrels per day the previous week.
The EIA’s most recent monthly data shows the U.S. imported 304,000 barrels of ethanol in August, primarily from Brazil. During the same month, the U.S. exported 2.942 million barrels of ethanol, primarily to Canada, the Netherlands, and United Arab Emirates.
Read the original article: EIA Increases Ethanol Production Forecast for 2019
November 1, 2018
News Release
Global markets vary greatly in their experiences with ethanol, from fully realizing the advantages of increased ethanol use to continued reliance on expensive and environmentally harmful fossil fuel additives. The U.S. Grains Council (USGC) wants countries around the world to look to ethanol when their government and industries think about octane.
Depending on the octane of the base gasoline in the fuel, refiners use additives to boost octane levels to enhance engine performance. Many international markets rely on methyl tertiary butyl ether (MTBE) as an additive despite water quality problems and associated clean-up costs exhibited in the United States and other countries. Additionally, refiners often use aromatics such as benzene, toluene and xylene, collectively known as BTX. Aromatics have high levels of particulate matter emissions that negatively impact human health and are expensive.
With one of the highest octane ratings of any fuel additive at 113 AKI (anti-knock index, which measures the fuel’s ability to resist knocking during combustion), ethanol provides economic benefits by boosting octane ratings of subgrade gasoline. Markets that do not allow ethanol blending within their national fuel specifications do not capture this octane advantage, cost-savings and other benefits of ethanol for their fuel oxygenation requirements, typically due to the lack of policies effectively governing national fuel standards. Many of these governments simply do not know a reliable alternative to MTBE or aromatics exists and is readily available.
From a straight price perspective, U.S. ethanol is cheaper than other components of gasoline – including MTBE and aromatics – and in some cases, gasoline itself. Using ethanol also reduces refining costs, allowing use of a sub-grade of gasoline, adding more savings. Octane value and cost savings are especially important in price-sensitive markets where fuel demand is more elastic.
Countries with excess refining capacity stand to further benefit from using ethanol in the finished gasoline product to other countries. South Korea and India both have significant refining sectors to service their own markets and export finished product to other markets. Singapore is also a major transshipment point for other countries in the Asian region, including Indonesia, which has annual gasoline demand of nearly 12 billion gallons.
The Persian Gulf, the United Arab Emirates, Oman and other European countries with excess oil refining capacity are exporting finished gasoline products to the West Africa region. These countries are taking advantage of the octane benefits of ethanol and passing them on to customer countries.
In its work to promote ethanol use globally, the Council encourages countries without the ability to produce their own feedstock to develop biofuels policies that include a role for ethanol imports. Countries that produce ethanol domestically can also benefit from trade that helps reliably fulfill the total ethanol demand needed to meet national fuel mandates.
More than 65 countries already have biofuels policies in place, with 11 markets announcing significant policy expansions in the last year. The Council continues to educate ministry and industry officials on the benefits of using ethanol and developing policies with a role for trade.
Read the original release: Sharing The Octane Advantage Of Ethanol With World Markets
November 2, 2018
By Cindy Zimmerman
Environmental groups filed a petition with EPA this week claiming that “millions of acres of wildlife habitat” have been converted to corn and soybean crops to produce biofuels under the Renewable Fuel Standard, based on a June report to Congress, which offered no specific conclusions about land use change related to biofuels production.
The petition claims that previously uncultivated land is being used to grow biofuels feedstocks, even though the amount of land used for corn and soybean production has declined since the RFS was instituted.
“The acreage data is very clear: farmers are planting fewer acres to corn today than we did when the Renewable Fuel Standard (RFS) was expanded,” said National Corn Growers Association (NCGA) president Lynn Chrisp. “And it’s not just corn acres that have fallen. The area planted to principal crops is shrinking nationwide. The reality of what is happening on today’s farms is not accurately portrayed in the petition.”
NCGA notes that farmers planted fewer acres to corn in 2018 (89.1 million) than they did when the RFS was expanded in 2007 (93.5 million). During that same time, ethanol production expanded from 6.5 billion gallons to 15.8 billion gallons. Overall, the area planted to principal crops in the U.S. has fallen from 328.6 million acres in 2000 to 322 million acres in 2018, according to the U.S. Department of Agriculture data.
Meanwhile, the average corn yield has increased by more than 25 bushels per acre since 2007 and doing so with fewer resources and improved farming practices. Farmers have doubled yields while the cutting use of primary nutrients per bushel in half between 1980 and 2014.
Chrisp says they welcome new dialog with environmental organizations. “Environmental groups recognized the emissions reductions and health benefits of biofuels when they backed the RFS. This energy and environmental policy has been a success, delivering GHG reductions, improving air quality, saving consumers money at the pump and reducing our dependence on oil,” said Chrisp.
Read the original article: Corn Growers Dispute Land Use Petition Claims