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Ethanol Producer Magazine

November 2, 2015

By Syngenta

Iowa Republican presidential candidate and former U.S. Sen. Rick Santorum visited the site of the first commercial cellulosic ethanol production in the state of Iowa at Quad County Corn Processors (QCCP) Oct. 30.

QCCP recently passed the two-million gallon milestone for cellulosic ethanol production using trademarked Cellerate-process technology. Cellerate is a collaboration between Syngenta and Cellulosic Ethanol Technologies LLC, a wholly owned subsidiary of QCCP.

Santorum met with QCCP and Syngenta representatives, including QCCP CEO Delayne Johnson, to discuss renewable fuels policy and see first-hand the innovative process technology that has enabled QCCP to become a leader in cellulosic ethanol production. Cellulosic ethanol is seen as a major contributor to meeting renewable fuel standard (RFS) targets.

"One of the things that's helped rural small towns and farmers, particularly in Iowa, is the Renewable Fuel Standard,” Santorum said.

Increased demand for ethanol has helped revive many rural communities by providing thousands of new, good-paying jobs. In 2013 alone, the ethanol industry created and supported nearly 400,000 new jobs across the country, while contributing more than $44 billion to the Gross Domestic Product and generating more than $4.5 billion in federal tax revenues.

Santorum also called for investment in flex fuel infrastructure to increase access to biofuels – which he believes would provide consumers with increased access to the fuel marketplace and allow greater market competition.

During 2014, QCCP achieved EPA certification to generate D3 renewable identification numbers (RINs) for cellulosic ethanol. According to Johnson, the generation of D3 RINs helps fulfill advanced and cellulosic requirements set forth by the RFS. QCCP is among the first companies to issue D3 RINs, which has also enabled the company to expand sales into racing and advanced biofuels markets.

“We are excited to have achieved our goal of producing 2 million gallons per year of cellulosic ethanol, and are on target to continue, or increase, this production level going forward,” Johnson said. “We’re now focusing on growing alliances and relationships within the industry.”

In 2014, Syngenta announced an agreement with Cellulosic Ethanol Technologies to license Cellerate process technology to ethanol plants. “Ethanol plants can integrate Cellerate process technology into their existing production process,” said Chris Tingle, head of Marketing for trademarked Enogen at Syngenta. “We believe that not only will Cellerate process technology help make advanced and cellulosic ethanol a reality, but the combination of Cellerate and Enogen could represent the next leap forward for ethanol production.”

Read the original story: Presidential Candidate, Former Senator Visits Quad County

Ethanol Producer Magazine

Nov 3, 2015

By Holly Jessen

Sixteen members of the Congressional Black Caucus sent a letter to the U.S. EPA Nov. 2, showing their support for the renewable fuel standard (RFS).

“As you finalize the proposed rules under the Renewable Fuel Standard (RFS), we respectfully urge you to not reduce the biofuels volume requirement,” a letter to EPA Administrator Gina McCarthy said. “The RFS program has helped the environment, our economy, and has increased our confidence in renewable fuels. Renewable fuels like cellulosic and advanced biofuels have reduced greenhouse gas and carbon emission to an equivalent of removing more than 124 million cars from the roads. The result of this reduction is an increase in air quality. Poor air quality particularly affects those in urban areas and communities of color.”

The letter pointed to many positives of the RFS, including greenhouse gas reductions, providing an incentive for investments into biofuel production and technology and job creation. Reducing the biofuels volume numbers “could have a chilling effect on innovation” and therefore have an effect on jobs. “With unemployment at an average of 10 percent in minority communities, it is important that we do not obstruct an entire industry that has created 842,000 American jobs and has the potential to create more,” the letter said.

They also poked holes in the EPA argument that lack of infrastructure is a reason to lower the biofuel volume requirements suggested by Congress. “We know that the oil industry largely controls that infrastructure,” the letter said. If we accept the argument that infrastructure is a limiting factor in setting blending targets, we remove all incentive for the oil industry to invest in biofuel.”

Read the original story here : Black Caucus Members Back RFS In Letter To EPA

Read the letter from the Black Caucus Members To The EPA here

The Hill

Nov 2, 2015

By Devin Henry

The White House has begun the final review of proposed ethanol-level rules under the federal renewable fuels mandate. 

The Office of Management and Budget reported Monday that it has received the final Renewable Fuel Standard (RFS) from the Environmental Protection Agency (EPA), the last step before finalizing the ethanol requirements.

EPA officials rankled both ethanol interests and the oil industry in May with the three-year ethanol mandate proposal, which looks to set the amount of ethanol refiners are required to mix into their gasoline supply every year. 

The proposed mixing levels are well below what Congress said they should be when lawmakers expanded the RFS in 2007. Corn-growers and biofuel advocates have pushed the EPA to increase the levels while finalizing the rule.

At the same time, the oil industry argued that it is already mixing as much ethanol as is possible into its fuel supply, warning that most cars can’t support fuel with more a higher ethanol concentration than 10 percent. 

Industry groups on both sides of the issue have launched ad campaigns over the proposal, and lawmakers had appealed directly to the White House and the EPA to make their cases for or against it. 

The EPA received more than 670,000 comments on their proposed RFS levels. A spokeswoman said Monday that the agency is “committed to the long-term growth in biofuels that will strengthen energy security and increase greenhouse gas emissions benefits.”

The Obama administration is required to issue the standards by Nov. 30.

Read the original story here : White House Begins Final Review Of Ethanol Rule

Bloomberg

Nov 2, 2015

By Mario Parker

Americans are burning the most gasoline in eight years. And the nation’s ethanol suppliers wouldn’t have it any other way.

More demand means more gasoline being blended. And more blending means more ethanol potentially getting added to the mix. That may give President Barack Obama’s administration just the support it needs to raise the amount of ethanol that fuel suppliers must use, according to the Washington-based consultancy ClearView Energy Partners LLC. The Environmental Protection Agency submitted proposed biofuel requirements to the White House for review on Oct. 30, the government’s website shows.

“We think the numbers are going higher,” Tim Cheung, vice president and research analyst at ClearView, said by phone Monday. “Gasoline consumption has increased and therefore consumers are using more ethanol.”

Since the Environmental Protection Agency issued its proposal in May to change national biofuel targets, the U.S. government has raised demand projections for both gasoline and ethanol to reflect improving economic conditions and lower prices. The revisions threaten to weaken refiners’ longstanding argument that drivers aren’t using enough of the motor fuel to support more ethanol blending.

“EPA is obligated to use the latest gasoline demand projections from EIA, so we fully expect the final” targets to reflect higher consumption estimates, said Geoff Cooper, senior vice president of the Renewable Fuels Association, a Washington-based trade group.

The American Petroleum Institute, which represents Exxon Mobil Corp. and Chevron Corp., referred to comments made on an Oct. 28 conference call with the group’s director, Bob Greco. During the call, he described the Renewable Fuel Standard as a “failed program.”

Ethanol already comprises 10 percent of gasoline consumption, and the institute has argued that blends exceeding that share may lead to car engine and fuel system damage.

In May, the EPA proposed to set corn-based ethanol requirements at 13.4 billion gallons this year and 14 billion in 2016. The government had targeted 15 billion gallons for both years when it was outlined in 2007.

Read the original story here : How Gas-Guzzling Americans Are Aiding The Call For More Biofuels

Ethanol Producer Magazine

October 30, 2015

By Ann Bailey

The U.S. fuel ethanol industry has dismissed the American Petroleum Institute’s latest diatribe on the renewable fuel standard (RFS), saying the API’s assertions are false and an effort to restrict American consumers’ fuel choice.

The API released a study that said the statutory biofuels mandate under the RFA was not feasible to achieve and could cause great harm to Americans and the U.S. economy. API Downstream Group Director Bob Greco told reporters in a conference call that the mandates try to force more ethanol into gasoline that is safe for most cars on the road.

National Economics Research Associates predicts that refiners will be forced to reduce the nation’s fuel supply gasoline and diesel by 30 percent, rather than risk damage to vehicles, Greco said during the conference call. The research group also concluded consumer demand for higher ethanol content gasoline such as E85 and E15 is too small to serve as an outlet for higher ethanol mandates.

Dissemination of the recent anti-ethanol information by the API is business as usual, said Brooke Bainum, a spokeswoman for Fuels America. The talking points from the API are not new and have been disproven many times, she said.

The oil industry repeatedly opposes efforts to improve air quality impacts from the U.S. supply and denies that is the right thing to do at the same time it makes “wild doomsday predictions” about the economic consequences that have never happened, Bainum said in response to API.

Gas retailers continually have lauded the benefits of higher blend fuels, Bainum noted. For example, Cheryl Near, owner of Jump Start gas station in Wichita, Kansas, said the United States needs to support homegrown renewable fuels and blend more, not less, ethanol into the fuel supply.

Meanwhile, U.S. Energy Department, Argonne National Laboratory and University of Illinois –Chicago studies disprove API’s claims about ethanol and also have proven the benefits of higher fuel blends, Bainum said.

Tom Buis, Growth Energy CEO, countered API’s latest claim by saying that the institute and its allies are attempting Americans hooked on dangerous foreign oil and consumers are paying the price. Americans deserve market access to a less expensive choice at the pump, Buis said. Ethanol choices such as E15 and E85 reduce greenhouse emissions and make the air cleaner, he said.

More than 84 percent of the cars on the road are approved to use E15, Buis noted, and despite what API claims, ethanol blends help clear the environment, are higher performing, cost less and directly benefit consumers by providing a choice and savings.

The Renewable Fuels Association called on the American Petroleum Institute to stop trying to scare consumers about biofuels in an attempt to protect its fuel monopoly.

“Much like an uncontained oil spill which obliterates everything it is path, as we approach the deadline for the EPA to release its final RFS rule Big Oil and its congressional supporters are pulling out all of the stops by completing obliterating the truth,” Bob Dineen, RFA president and CEO said in a news release.

Read the original story: Ethanol Industry Disputes API’s Ethanol Claims

DuPont

October 30, 2015

DuPont celebrated the opening of its cellulosic biofuel facility in Nevada, Iowa, with a ceremony including Iowa Gov. Terry Brandstad and many other dignitaries. This biorefinery is the world’s largest cellulosic ethanol plant, with the capacity to produce 30 million gallons per year of clean fuel that offers a 90 percent reduction in greenhouse gas emissions as compared to gasoline.

The raw material used to produce the ethanol is corn stover – the stalks, leaves and cobs left in a field after harvest. The facility will demonstrate at commercial scale that non-food feedstocks from agriculture can be the renewable raw material to power the future energy demands of society. Cellulosic ethanol will further diversify the transportation fuel mix just as wind and solar are expanding the renewable options for power generation.

DuPont brings an unparalleled combination of science competencies and almost 90 years of agronomy expertise in Iowa to develop both a pioneering clean fuel and biomass supply chain. Vital to the supply chain and the entire operation of the Nevada biorefinery are close to 500 local farmers, who will provide the annual 375,000 dry tons of stover needed to produce this cellulosic ethanol from within a 30-mile radius of the facility. In addition to providing a brand-new revenue stream for these growers, the plant will create 85 full-time jobs at the plant and more than 150 seasonal local jobs in Iowa.

“Iowa has a rich history of innovation in agriculture,” said Iowa Gov. Terry Branstad. “Today we celebrate the next chapter in that story, using agricultural residue as a feedstock for fuel, which brings both tremendous environmental benefits to society and economic benefits to the state. The opening of DuPont’s biorefinery represents a great example of the innovation that is possible when rural communities, their government and private industry work together toward a common goal.”

Biomass-based businesses can bring new sources of revenue and high-tech opportunities to rural economies around the world. As a global company with operations in more than 90 countries, DuPont is uniquely positioned to deploy its cellulosic technology for a global rollout, in transportation fuel and other industries.

“Today, we fulfill our promise to the global biofuels industry with the dedication of our Iowa facility,” said William F. Feehery, president of DuPont Industrial Biosciences. “And perhaps more significantly, we fulfill our promise to society to bring scientific innovation to the market that positively impacts people’s lives. Cellulosic biofuel is joining ranks with wind and solar as true alternatives to fossil fuels, reducing damaging environmental impacts and increasing our energy security.”

In Asia, DuPont recently announced its first licensing agreement with New Tianlong Industry to build China’s largest cellulosic ethanol plant, and last fall a Memorandum of Understanding (MOU) was announced between DuPont, Ethanol Europe and the government of Macedonia to develop a second-generation biorefinery project. The company also is working in partnership with Procter & Gamble to use cellulosic ethanol in North American Tide® laundry detergents.

The majority of the fuel produced at the Nevada, Iowa, facility will be bound for California to fulfill the state’s Low Carbon Fuel Standard where the state has adopted a policy to reduce carbon intensity in transportation fuels. The plant also will serve as a commercial-scale demonstration of the cellulosic technology where investors from all over the world can see firsthand how to replicate this model in their home regions.

FACT SHEET: The DuPont Cellulosic Ethanol Facility

DuPont’s achievement provides the technology that will transform the U.S. fuel supply enabling a transition to fulfill the original cellulosic ethanol volume targets as Congress intended when it passed the Renewable Fuel Standard, a regulation established in 2005 to encourage growth and investment in sustainable fuel solutions. Earlier this month, DuPont and America’s Renewable Future released new poll findings that suggested Iowa caucus-goers from both parties – 61 percent of Republicans and 76 percent of Democrats – would be more likely to vote for a presidential candidate who supports the Renewable Fuel Standard and renewable fuels.

Read the original story: DuPont Celebrates the Opening of the World’s Largest Cellulosic Ethanol Plant

Omaha World Herald

October 28, 2015

By Kyle Nixon

The author is the general manager of the Novozymes facility in Blair, Nebraska.

At the end of November the Environmental Protection Agency is due to issue the final rule on the amount of renewable biofuels that will be blended into the nation’s fuel supply.

The initial proposal, which was issued back in May, was a step backward for the economy and a threat to future investments.

Biofuels blending volumes are set by the Renewable Fuels Standard (RFS), which was signed into law 10 years ago. Each year the EPA is required to issue regulations that turn those volumes into a percentage of the fuel supply. As you have probably noticed at the gas pump, most of our fuel supply now contains 10 percent ethanol.

The latest EPA proposal, however, sets the blending below the levels dictated by the law. If that change is finalized, that flawed proposal will undermine significant economic success.

Ever since the RFS was passed, companies like Novozymes have been investing in renewable fuels. We are a global biotechnology company and we supply the enzymes that help prepare biomass for the biofuels industry.

Since 2005, we have invested $500 million in technology, facilities and people to move the biofuels industry forward. We spent $200 million to build our plant in Blair, which opened in 2012 and now employs more than 100 people.

I am the general manager of the Novozymes facility in Blair, and I’ve seen firsthand the economic benefits of the RFS for Nebraska. According to the trade group Fuels America, the renewable fuels industry supports more than 850,000 jobs nationally, paying $46.2 billion in wages and $14.5 billion in taxes each year.

Instead of sending money to overseas oil producers, the biofuels sector has provided financial stability for rural farming communities right here at home.

It also has produced returns for the environment. In the 10 years since it was enacted, the RFS has reduced U.S. carbon emissions by 590 million metric tons by pushing gasoline out of the fuel supply. That’s like removing 124 million cars from the road.

But the law has been so successful that the oil industry is pushing back. Afraid of losing market share, the oil industry has attacked the RFS and attempted to influence the EPA’s administration of the law. Unfortunately that strategy resulted in the recent EPA proposal that would reduce the amount of blended renewable fuels.

Novozymes invested and innovated because of the RFS. Our workforce is here, in Blair, because of the RFS. We want to invest more, but the instability of this policy is putting the brakes on a fast-growing industry. In June, Nebraska Gov. Pete Ricketts visited our global headquarters in Denmark and heard about the challenge of investing with an unpredictable policy.

“They are looking at all their investments in light of the EPA decision,” he said. “When the EPA changes the rules, it creates uncertainty and hampers job creation.”

Novozymes believed that the EPA would follow the letter of the law. Now EPA officials are pulling the rug out from under the biofuels industry and betraying hardworking Americans and the communities that have built this industry.

The final rule is due on Nov. 30. Between now and then the EPA has a chance to stand up for American workers and farmers, follow the law, and get this policy right.

The EPA can still keep our government’s promise and drive a great economic success story.

Read original story: EPA Biofuels Rule Could Hurt Economy

AGweek

October 26, 2015

By Mikkel Pates

With grain prices dropping since 2013, farmers are closing the 2015 season with big crops and difficulty penciling profits.

Agweek visited with the presidents of the South Dakota Farm Bureau and the South Dakota Farmers Union, the two general farm organizations that aren’t specific to a commodity or a species of livestock. The organizations differ in emphasis, but agree on certain things. Significantly, both say ethanol will be important to the region, and will weather the financial storm.

Scott VanderWal, president of the SDFB since 2004, operates a third-generation family farm, raising soybeans and corn, with some custom cattle-feeding and custom harvesting near Volga, S.D., which is about 8 miles west of Brookings, S.D.

South Dakota Farmers Union President Doug Sombke farms with his sons on land his great-grandfather farmed near Groton, S.D., about 20 miles east of Aberdeen. Today, the Sombkes run the farm and have diversified with a hunting lodge, dog business and a soil-sampling enterprise.

Ethanol a key

VanderWal leads an organization of about 16,000 member-families, meaning a single member might represent several family members. He says the SDFB is clearly and consistently in favor of ethanol development. It is opposed to lowering ethanol volumes required in the Environmental Protection Agency’s Renewable Fuel Standard, as has been proposed.

Ethanol production also creates a byproduct called distiller’s grains, which benefits the state’s livestock industry as a feed option.

“We do have some livestock producers who feel the RFS is an unfair advantage, and that it drives up the cost of corn,” VanderWal says. “But we can see now that corn is back to some pretty low prices. We’re still producing ethanol at record levels, like we had been.”

He harvested a good soybean crop, and the biggest corn crop his farm has ever experienced, with a yield of nearly 190 bushels per acre.

Ethanol development and expansion is the biggest priority for the Farmers Union, an organization of about 14,000 people. With the rise and fall of corn prices in the past several years, Sombke sees ethanol as “the way to go” to help stabilize corn and other grains.

“It gives us another market for the marketing of the corn, but also the byproducts,” he says.

South Dakota has been one of the most aggressive places for developing ethanol, and is still trying to expand. The Ring-Neck Energy & Feed LLC project in Onida, S.D., about 30 miles northeast of Pierre, is the most recent effort to build a new plant. The company, formed in September 2014, is trying to gather finances to build a 70-million-gallon-per year plant that would take 25 million bushels of corn per year.

The current $3-per-bushel corn price might mean less cash for investment, but that’s when farmers need the ethanol market the most, Sombke says.

“That’s the reason I got into it 10 years ago, and why I started using higher blends of ethanol rather than just using the 10 percent, and not only in flex-fuel vehicles but in non flex-fuel vehicles, as well.”

A national industry effort seeks to raise the ethanol level in fuel from 10 to 15 percent, but Sombke thinks the future is the E30 blend. It’s the “most stable fuel you can find,” he says, regarding its evaporation volatility. He has E30 splash-blended and delivered to his farm for use in flex-fuel and standard vehicles.

Despite allegations against the ethanol blends, Sombke emphasizes there has never been “proof in a legal case” of any standard engine failing from the use of E30.

Politics, regulation

In terms of policy efforts, Sombke says SDFU is circulating a petition to acquire 27,741 valid signatures to create an independent political redistricting committee for the state. It would revise the way the state legislature changes voting district boundaries. Iowa has done it. Montana is one of 26 other states considering something similar.

Gerrymandering political districts to suit partisan motives is a problem for rural voters, Sombke says. A recent district change put 1,500 people from Aberdeen into a district that sprawls 100 miles away into Spink, Clark and Hamlin counties.

“The legislators are picking the voters, not the voters picking the legislators,” Sombke says.

As for its policy initiatives, the SDFB is anxious to help follow through on a state wetland mitigation bank it helped develop in the last Legislature, VanderWal says.

Under the wetland mitigation bank plan, a farmer wanting to eliminate a wetland in the middle of a field can buy credits toward creating a new one, and the person expanding or creating a wetland can take a payment toward that purpose. The state is still in the process of getting the federal Natural Resources Conservation Service to approve the details.

VanderWal says frustration surrounds NRCS backlogs in making wetland determinations.

In a related wetland issue, SDFB supports litigation efforts to oppose the expansion of EPA authority over wetlands in the Waters of the U.S. rule. VanderWal says if WOTUS can’t be stopped legally, the groups will work through Congress to defund or overturn the rule. South Dakota joined a North Dakota effort that created an injunction on the rule in 13 states, which has since been expanded nationwide.

Dairy differences

The 2015 North Dakota Legislature passed exemptions to the state’s anti-corporate farming law to closer reflect legislation in South Dakota that allowed growth in its dairy industry.

To compare, South Dakota voters in November 1998 approved Amendment E, an anti-corporate farming law, but it was ruled unconstitutional in 2003. Sombke says the SDFU supports dairy development, but he agrees with North Dakota Farmers Union colleagues who have opposed an anticorporate exemptions in North Dakota.

“I don’t think (overturning the law) changed anything for the better or worse,” Sombke says of the South Dakota law. “I do know corporations try to build because of [a lack of anti-corporate law in South Dakota], but we’re still largely family-owned, not corporate-owned.”

VanderWal says his organization is in support of “responsible livestock development and expansion. With land prices and the cost of capital now for starting to farm, it’s virtually impossible for a young person who isn’t inheriting a farm to get started.”

South Dakota needs more dairy cows with the opening of the Bel Brands cheese plant in Brookings. The expansion of the dairy industry has been a good thing, VanderWal says.

“Lots of people have new (dairy-related) jobs around Brookings,” he says. “It’s economic development.”

VanderWal says South Dakota’s program to help counties identify areas well-suited for livestock production is significant from environmental and social perspectives.

The climate

Sombke says South Dakota’s main advantage over North Dakota is climate.

“There’s a big difference between here and Fargo in the coldness of the weather and the climate for livestock,” says Sombke, who lives 35 miles from the North Dakota border. “That’s the biggest reason there’s no development (in North Dakota), not the corporate farming law. That’s just what the North Dakota Farmers Union says, as it is leading an effort to overturn the new exception.”

Sombke says the South Dakota Department of Environment and Natural Resources should gather more diverse opinions on the environmental impacts of large dairies and feedlots. He says the large livestock enterprises can have bigger negative effects on the environment.

VanderWal says the bottom line is that livestock development is still the most available avenue for young people to get into agriculture.

“You can still put up buildings or a feedlot, and start contract-producing livestock,” he says.

Most of the dairies that have moved here from other countries and states initially only wanted the 50 acres or so to place their buildings, and would buy feed products from surrounding farmers. Now, some are starting to buy their own farmland and put up their own feed.

That’s important, because it means they’re making money.

And both organizations can agree that’s crucial.

While the two groups have historically been split along political lines, the South Dakota Farm Bureau and Farmers Union do agree on some issues.

Ethanol’s influence on their state’s economy and farmers is at the top of that list.

Read the original story: Common Ground: SD Farm Groups Differ on Policy, but Support Ethanol