In the News
Apr 29, 2022
CEDAR RAPIDS, Iowa - Fluid Quip Technologies (FQT), a majority owned subsidiary of Green Plains Inc. (NASDAQ: GPRE), today unveiled DCO+TM, a new technology to achieve record-high low-carbon renewable corn oil recovery in dry grind biofuel facilities. A recent full- scale demonstration of DCO+TM at Green Plains Wood River achieved a breakthrough 1.4 pounds per bushel low-carbon renewable corn oil yield when integrated in a full MSCTM system. As a standalone system, DCO+ can achieve up to a 40% increase in overall production of corn oil. FQT will offer this valuable solution to other biofuel plants throughout the industry.
DCO+TM utilizes FQT’s patented technologies to liberate additional distillers corn oil from the fiber fraction in the distillers grains. The DCO+TM technology was born from FQT’s patented MSCTM protein separation system and is integral to the high corn oil yields those systems produce.
“This new renewable corn oil capture technology comes from years of experience operating our MSC systems and is an immediate game changer for Green Plains and for the industry,” said Michael Franko, Managing Director, Fluid Quip Technologies. “With DCO+, independent plants looking for low-cost revenue enhancing projects can take advantage of up to 40% more corn oil, a valuable low-carbon feedstock for the rapidly expanding renewable diesel industry.”
Benefits of DCO+TM include:
- Up to 40% additional corn oil recovery
- Thin Stillage Clarification
- Organic acid reduction/healthier fermentation
- Lower suspended solids in evaporator stream
- Performance guarantees
FQT is now offering this game-changing technology package broadly to the industry.
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) provides proprietary technologies and engineering services to the biofuel and biochemical industries worldwide. FQT has commercialized multiple technologies to enhance the base corn-to-ethanol dry grind process, create new and novel alternative feed products, and supply the growing need for carbohydrate feedstocks into the biochemical market.
Read the original press release here.
Apr 28, 2022
U.S. governors from eight Midwest states, many of which are major corn producers, asked the Biden administration on Thursday to apply rules that would allow gasoline blended with a higher level of ethanol to be sold year-round in their states.
Governors from Iowa, Illinois and Minnesota said in a letter to the Environmental Protection Agency that allowing the blend, known as E15, year-round would help lower gasoline prices, which have risen to over $4 per gallon after Russia's invasion of Ukraine.
Earlier this month, President Joe Biden unveiled plans to allow summertime sales of E15, which blends gasoline with 15% ethanol. A summertime ban on E15 was imposed over concerns it contributes to smog in hot weather, though research has shown that the 15% blend may not increase smog releative to the more common E10 sold year-round. E10 contains 10% ethanol.
Biofuel advocates, however, want a more permanent action that allows for year-round sales of E15. Expanded sales of the blend would likely broaden demand for corn-based ethanol.
Under the Clean Air Act, governors asked the EPA to put the specifications for volatility of E15 and E10 on equal footing. The Midwest governors told the EPA on Thursday that they are pursuing this route to enable year-round E15 sales.
"These states have guided the way forward on E15," said Renewable Fuels Association President Geoff Cooper, "and we call on other states and the EPA to follow their lead, so that the benefits of E15 can be permanently enjoyed by drivers across the nation."
The states involved in Thursday's action are home to 57% of the nation's 2,512 stations currently selling E15, the RFA said.
Read the original story here.
Apr 20, 2022
Today’s corn ethanol now provides nearly three times the energy used to produce it, according to a new analysis by the Renewable Fuels Association, with some biorefineries approaching a four-to-one energy ratio. This continuing improvement in energy balance reflects improved efficiencies in corn production and ethanol processing.
“Our nation’s corn farmers and ethanol biorefineries have been working harder and smarter to improve productivity, and that clearly shows in these new numbers,” said RFA Chief Economist Scott Richman. “This is an important message for policymakers and regulators who should note the progress our industry and its suppliers are making when it comes to sustainability and energy conservation, and it should set the record straight as some detractors continue to dredge up decades-old allegations.”
Richman noted that estimates of the average energy balance ratio for corn ethanol have increased sharply over time. In RFA’s previous analysis, released in March 2016, the association conservatively found the average energy balance ratio of corn ethanol was likely in the range of 2.6 to 2.8, with the top quartile of dry mill biorefineries averaging 3.2 to 3.4.
Read the original story here.
Apr 18, 2022
The International Energy Agency in March released a report predicting that global biofuels supply will reach 3.3 million barrels per day by 2026, up from 2.6 million barrels per day in 2020. The forecast was included in the organization's Oil 2021 report, which includes analysis and forecasts through 2026.
Global ethanol production is set to grow by 33,000 barrels per day from 2020 to 2026 with China, India and Brazil responsible for most of that capacity growth. The production of biodiesel and hydrotreated vegetable oils (HVO) is expected to expand by 380,000 barrels per day over the same period, led primarily by capacity expansions in the U.S., Indonesia, and Malaysia.
The IEA predicts that U.S. ethanol production will not recover to 2019 pre-pandemic levels during the forecast period. "Assuming no policy changes and stable exports, production is 2026 will be [80,000 barrels per day] lower than in 2019 as domestic gasoline demand starts to decline,” the IEA said in the report. “By contrast, HVO production continues to grow strongly, supported by a number of policies that drive HVO investments, including the Renewable Fuel Standard, renewable identification numbers [RINs] prices, LCFS credits, and the biodiesel blender credit.”
In Brazil, the IEA predicts that recovery in gasoline demand and higher RenovaBio goals for decarbonization credits will underpin a rebound in ethanol production over the medium term. Brazilian corn ethanol production is expected to expand, with several new plants under development. The IEA expects Brazilian ethanol supply to average 660,000 barrels per day in 2026, up 35,000 barrels per day when compared to 2019.
China is expected to see the strongest growth in ethanol production, according to the IEA. The agency predicts production will reach 160,000 barrels per day by 2026, up from 70,000 barrels per day in 2020. Ethanol production is also expected to increase in India, reaching 70,000 barrels per day by 2026, up from 30,000 barrels per day in 2020.
In Indonesia, biodiesel production is expected to expand to 190,000 barrels per day in 2026, up from 140,000 barrels per day in 2020. Malaysian biodiesel production is expected to reach 40,000 barrels per day in 2026. In Europe, HVO and biodiesel production are expected to reach 320,000 barrels per day in 2026, up 40,000 barrels per day when compared to 2020.
A full copy of the report is available on the IEA website.
Read the original story here.
Apr 4, 2022
WEST LAFAYETTE, Ind. — Capturing the interactions between biofuels and agricultural industries and their connections with other economic activities was key to a first-of-its kind study.
“This is the first comprehensive examination of market factors and policies on the expansion of biofuels production in the U.S. to examine the economic impact of these individual drivers separately,” said Farzad Taheripour, the Purdue University agricultural economist who led the study. “We found that RFS played a critical role in reducing uncertainties in commodity markets, and its most significant impact was to help farmers use their resources more efficiently. With producing more corn and soybeans, over time the farmers were able to bring fallow land that had been unused back to production, and U.S. annual farm incomes increased by $8.3 billion between 2004 and 2011, with an extra additional annual income of $2.3 billion between 2011 and 2016.”
Over the past 15 years, production and consumption of biofuels have increased in the U.S. due to various factors including market forces and biofuel policies, he said. The Renewable Fuel Standard, or RFS, policy requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. Examples of renewable fuels include the biofuels ethanol, most often made in the U.S. from corn; and biodiesel, most often made from soybeans. The policy was established in 2005, and was expanded and extended by the Energy Independence and Security Act of 2007.
The economic study looked at both short- and long-term price impacts of policies and other market forces on the expansion of the biofuels industry and was able to identify the impact of each individual market driver. A paper detailing the team’s work is available in the journal Frontiers in Energy Research.
“A hybrid of models is needed to accurately assess the situation – one model can’t capture it all,” said Taheripour, a research professor of agricultural economics and member of Purdue’s Center for Global Trade Analysis or GTAP. “An introduction of a new policy shocks the market, but only for the short term. In the long run, people adjust, things stabilize and the true impact can be seen. For example, we are experiencing a shock now in crude oil. People are reacting to the war in Ukraine and to uncertainty, but we don’t yet know how it will impact the market on a scale of years or decades.”
The team developed economic analyses using both partial and general equilibrium models, which are the best modeling frameworks for short- and long-term analysis, respectively, he said. Through this work the team was able to differentiate the economic impacts of the RFS from other drivers that helped biofuels production grow and to evaluate the short- and long-run price impacts of RFS, as well as the contributions of the policy to improvements in farm incomes and use of agricultural resources.
A key model used by the team was Purdue’s GTAP-BIO computational general equilibrium model for land use analyses related to the environmental, agricultural, energy, trade, and biofuel policies and actions. The model separates oil crops, vegetable oils, and meals into several categories. In addition to the standard commodities and services, the model includes the production and consumption of biofuels - corn ethanol, sugarcane ethanol, and biodiesel - and their by-products of dried distiller grains, commonly referred to as DDGS, and meals.
“The model takes into account the use of commodity feed stocks for food and fuel, and the competition or trade-offs between those and other market uses,” Taheripour said. “It also traces land use and handles intensification in crop production due to technological progress, multicropping and conversion of unused cropland to crop production. This is the first biofuels study to be able to piece out all of these factors individually and to combine that information with short-term models to capture finer and shorter-term impacts.”
Taheripour collaborated with Harry Baumes, a member of the National Center for Food and Agriculture Policy in Washington, D.C., and Wallace E. Tyner, the late James and Lois Ackerman Professor of Agricultural Economics at Purdue.
“When we analyze policy implications, we need to look comprehensively and have a broad perspective,” Taheripour said. “The goal of my research is to guide policy makers to the best and most informed decisions that are safe and benefit us all.”
Read the original story here.
Apr 6, 2022
The U.S exported 143.07 million gallons of ethanol and 870,844 metric tons of distillers grains in February, according to data released by the USDA Foreign Agricultural Service on April 5. Exports of both products were up when compared to February 2021.
The 143.7 million gallons of ethanol exported in February was up when compared to both the 123.82 million gallons exported the previous month and the 101.67 million gallons exported in February 2021.
The U.S. exported ethanol to more than 40 countries in February. Canada was the top destination for U.S. ethanol exports at 30.98 million gallons, followed by India at 25.64 million gallons and South Korea at 18.27 million gallons.
The value of U.S. ethanol exports reached $352.78 million in February, up from $322.64 million in January and $193.96 million in February of last year.
Total ethanol exports for the first two months of 2022 reached 266.89 million gallons at a value of $675.43 million, compared to 266.31 million gallons exported during the same period of 2021 at a value of $449.62 million.
The 870,844 metric tons of distillers grains exported in February is down when compared to the 1.09 million metric tons of exports reported for January, but up from the 799,324 metric tons exported during the same month of last year.
The U.S. exported distillers grains to nearly three dozen countries in February. Mexico was the top destination for U.S. distillers grains exports at 203,911 metric tons, followed by South Korea at 104,218 metric tons and Canada at 102,421 metric tons.
The value of U.S. distillers grains exports was at $245.89 million in February, down from $284.67 million the previous month, but up from $199.31 million in February of last year.
Total distillers grains exports for the first two months of 2022 reached 1.96 million metric tons at a value of $530.56 million, compared to 1.7 million metric tons exported during the same period of last year at a value of $423.25 million.
Additional data is available on the USDA FAS website.
Read the original story here.
Apr 5, 2022
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and John Thune (R-SD) urged the Environmental Protection Agency (EPA) to update its greenhouse gas modeling for biofuels. Specifically, the senators requested the EPA adopt the Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model. These long-overdue updates would permit consistent comparison between petroleum-based fuels, natural gas systems, electric generation, and renewable fuels.
“We urge you to adopt Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model. Adopting the GREET Model will not only permit the federal government to further standardize its comparison of GHG emissions for biofuels like ethanol, biodiesel, and sustainable aviation fuel, but enable over 50,000 registered GREET users to more readily compare renewable fuels to other sources of energy,”the senators wrote to EPA Administrator Michael Regan.
“We applaud EPA for reviewing and updating its GHG modeling resources in accordance with its obligations under the RFS to ensure that accurate and reliable data can remain central to policies concerning energy consumption and reducing emissions,”the senators continued.“We hope that EPA will use the GREET Model as its primary resource for determining lifecycle GHG emissions of biofuels, which could immediately contribute to ongoing efforts to reduce energy emissions.”
The letter was also signed by U.S. Sens. Sherrod Brown (D-OH), Dick Durbin (D-IL), Tammy Duckworth (D-IL), Joni Ernst (R-IA), Chuck Grassley (R-IA), Roger Marshall (R-KS), and Mike Rounds (R-SD).
Last February, Klobuchar and Thune introduced theAdopt GREET Act, bipartisan legislation that would require the EPA to update its greenhouse gas modeling for ethanol and biodiesel. Their bill would require the EPA to update its modeling every five years, or report to Congress to affirm its modeling is current, or otherwise explain why no updates were made.
Klobuchar has been a strong advocate for investing in renewable fuel infrastructure, increasing American biofuel production, and upholding the Clean Air Act’s Renewable Fuel Standard (RFS). She recently introduced theHome Front Energy Independence Actwith Senator Joni Ernst (R-IA), bipartisan legislation to expand the availability and production of American biofuel, following President Biden’s ban on importing Russian oil.
In February, she and Senator Chuck Grassley (R-IA) led a bipartisan letter urging the Environmental Protection Agency (EPA) to prioritize the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2022; denying all pending Small Refinery Exemptions (SREs); eliminating proposed retroactive cuts to the renewable volume obligations (RVOs); and setting 2021 RFS volumes at the statutory levels.
Klobuchar and Grassley also introduced bipartisan legislation in December to provide certainty to biofuel producers by preventing the EPA from retroactively reducing RVO levels once finalized.
The full text of the letter is available HERE and below:
Dear Administrator Regan:
We write in response to the decision by the Environmental Protection Agency (EPA) to review the scientific methodology and modeling used in the transportation sector pursuant to the Renewable Fuel Standard (RFS) to accurately ascertain the GHG emissions of land-based biofuels . In support of this effort and the need for stakeholders to have a consistent and well-vetted standard through which all biofuels may be compared, we urge you to adopt Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model. Adopting the GREET Model will not only permit the federal government to further standardize its comparison of GHG emissions for biofuels like ethanol, biodiesel, and sustainable aviation fuel, but enable over 50,000 registered GREET users to more readily compare renewable fuels to other sources of energy.
As presented during the March 1, 2022, EPA workshop, the GREET Model has provided annually updated lifecycle “well-to-wheels” analysis for an expanding universe of energy sources since 1995. Importantly, the GREET Model permits consistent comparison between petroleum-based fuels, natural gas systems, electric generation, and renewable fuels derived from a variety of technology pathways, accounting for the lifecycle carbon intensity of key farming inputs. We ask that EPA utilize the GREET Model as the baseline GHG determination for biofuels so that stakeholders may have the opportunity to readily compare the GHG intensity of competing energy sources and policymakers may have a fuller picture of how to decarbonize the energy and transportation sectors.
The GREET Model has been among the most widely utilized sources of GHG data, underpinning research that finds corn ethanol can currently achieve 46 percent lower lifecycle carbon intensity than gasoline. This environmental benefit will only increase as biorefining and fuel technologies improve, the agriculture sector advances operational efficiencies and produces higher yields of renewable feedstock per acre, and as biofuel operations are paired with carbon capture projects. Updated and consistent GHG modeling can provide a positive feedback loop that drives continued progress to lower carbon intensity at both the farm and fuel level. From “field-to-tailpipe,” the reduction of carbon intensity provided by biofuels deepens as consumers select higher blends of biofuels like E15, E30, E85, and B20 for their energy needs.
We applaud EPA for reviewing and updating its GHG modeling resources in accordance with its obligations under the RFS to ensure that accurate and reliable data can remain central to policies concerning energy consumption and reducing emissions. We hope that EPA will use the GREET Model as its primary resource for determining lifecycle GHG emissions of biofuels, which could immediately contribute to ongoing efforts to reduce energy emissions.
Thank you for the timely consideration of our request and your assistance to enable homegrown biofuels to serve as a solution to our nation’s growing energy challenges.
Read the original press release here.
Mar 31, 2022
Three in four American voters support expanding the availability of E15 as a way to replace petroleum imports from Russia, and more than 80 percent support increasing domestic renewable fuel production as a way to lower record-high gas prices, according to a recent nationwide survey conducted by Morning Consult.
With national average gas prices hovering above $4 per gallon, 83 percent of the registered voters surveyed said they support increasing the domestic production of renewable fuels like ethanol as a way to bring down fuel prices, with 52 percent saying they “strongly support” such action. Since the beginning of March, ethanol prices have been nearly $1 per gallon lower than gasoline prices at wholesale terminals where gasoline is blended. Accordingly, blending higher levels of ethanol into gasoline brings down the price of the fuel sold to consumers at the pump.
Meanwhile, 72 percent of the survey respondents said they support increasing the availability of E15 as a way to replace oil imports from Russia. If E15 replaced just 30 percent of the E10 currently being sold in the United States, the nation could entirely replace the amount of gasoline supplied annually from Russian petroleum imports.
“These results shouldn’t come as a surprise to anyone, as E15 and other higher-ethanol blends are the lowest-cost fuels available anywhere in the market today,” said RFA President and CEO Geoff Cooper. “But unless the Biden administration acts immediately to allow summertime sales of E15, the cheapest fuel available at the pump will disappear on June 1 and Americans will be faced with another price hike. As this survey clearly shows, voters understand that using more American-made ethanol can immediately help bring pump prices down and enhance our nation’s energy security. At the same time, higher blends of ethanol reduce greenhouse gas emissions and tailpipe pollutants linked to cancer, heart disease, respiratory illness, and other health concerns.”
Voters also expressed support for increasing the production of flex-fuel vehicles (FFVs), which can run on fuel containing up to 85 percent ethanol (E85), with 69 percent saying it is important for the U.S. government to incentivize automakers to increase FFV output. Flex fuels like E85 are currently selling at a 30-50 percent discount to regular gasoline, providing FFV drivers with an incredible opportunity to save money at the pump.
The poll showed that voters prefer increased domestic renewable fuel use to lower pump prices over increased domestic production or importation of crude oil. In fact, more than half of the survey respondents who expressed an opinion opposed increasing crude oil imports to lower pump prices.
“The implications of this polling data are clear: voters across the country want our nation’s leaders to act immediately to increase the production and use of low-cost, low-carbon renewable fuels like ethanol to bring down pump prices and help the environment,” Cooper said.
Finally, the Morning Consult survey showed that two-thirds of voters support the Renewable Fuel Standard, which requires renewable fuels to comprise an increasing share of the nation’s fuel supply each year.
Read the original story here.
More...
Mar 31, 2022
WASHINGTON, D.C. — Today, U.S. Representative Angie Craig led the six bipartisan Co-chairs of the Congressional Biofuels Caucus and 23 additional Members of Congress in a letter to President Joe Biden urging him to prioritize homegrown, renewable biofuels as a replacement for Russian energy sources. The letter comes after Congress banned the importation of Russian oil earlier this month. In their letter, the Members applauded the decision to ban imports of Russian oil and natural gas into the United States and argued that a renewed emphasis on renewable fuels would lower fuel prices for American consumers by more than $12 billion annually, generate substantial economic growth in rural communities and significantly decrease American dependence on foreign oil producers like Russia.
The letter asks the President to consider directing the Environmental Protection Agency (EPA) to allow the summer sales of E15 this year and to direct the EPA to reverse course on proposed retroactive reductions to 2020 and 2021 Renewable Volume Obligations. As of today – and barring any action by Congress or the President – the summer sales of E15 in Minnesota and other states will be prohibited beginning on June 1, 2022 due to a D.C. Circuit Court decision on the Clean Air Act in July of 2021.
“To ensure that this ban – and future actions that the U.S. may need to take to defeat Russian aggression – is economically sustainable for the American economy and American people, we urge you to consider the following actions that would prioritize homegrown and renewable biofuels,” the Members wrote. “Taken together, these actions would significantly increase U.S. energy independence, lower prices at the pump and ensure the continued success of our sanctions on the Russian economy.”
Actions to increase U.S. energy independence in light of Russian aggression are overwhelmingly supported by the American public. A recent Morning Consult poll indicated that 72% of Americans support increasing the availability of E15 as a way to replace Russian oil imports, and 83% of Americans support increasing domestic renewable fuel production – which includes renewable biofuels like ethanol and biodiesel – in the U.S. as a strategy to lower fuel prices.
“We thank these House members for encouraging President Biden to embrace domestic renewable fuels as a lower-cost, lower-carbon alternative to Russian oil imports,” said Renewable Fuels Association President and CEO Geoff Cooper. “E15 is typically selling for 20-30 cents per gallon less than regular gasoline right now; and as revealed by a new nationwide survey, three out of four voters support increasing the availability of E15 as a strategy for reducing pump prices and providing relief to American families. If the Biden administration fails to act on the straightforward request made by these Representatives, the lowest-cost fuel available at the pump today will disappear on June 1 and drivers will face another unnecessary price hike.”
“The message on both sides of the aisle remains loud and clear: to immediately offer relief at the pump and move toward a more secure energy sector, the Biden Administration must increase access to homegrown, low-carbon biofuels,” said Growth Energy CEO Emily Skor. “As gas prices hit their peak, higher blends of biofuels like E15 were selling for more than 50 cents cheaper per gallon at the pump in some areas of the country. Increasing access to lower-cost biofuels, through year-round E15 and robust RVOs, would offer these savings to more drivers and reduce our country’s dependence on foreign oil.”
“ACE members are incredibly grateful for the leadership being demonstrated by Rep. Angie Craig to spearhead this bipartisan letter urging the President to act now to allow E15 year-round and get the Renewable Fuel Standard back on track,” said Brian Jennings, American Coalition for Ethanol (ACE) CEO.“Ensuring year-round access to domestically-produced E15 for all parts of the country is the quickest way to address pain at the pump and make the U.S. more energy secure.”
“Corn farmers appreciate the bipartisan leadership of the House Biofuels Caucus and the 29 House Members who joined this letter asking President Biden to prioritize renewable fuels, like ethanol, when it comes to lowering prices for drivers and increasing our domestic energy supply,” said National Corn Growers Association (NCGA) President Chris Edgington. “Throughout this month, E15 has been priced around 10 to 40 cents less per gallon than regular, or E10, making ethanol the low-cost and low-emission solution the country needs now. However, unless the Biden administration or Congress act soon, drivers will lose retail access to lower-cost E15 on June 1. We urge continued bipartisan cooperation to keep this money-saving choice available.”
“Over the last two years, the more than 65,000 U.S. workers in the biodiesel and renewable diesel industry worked hard to maintain fuel supplies and provide value to consumers,” said Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels Alliance America.” Clean Fuels and its members thank the members of the Biofuels Caucus – and especially Representatives Angie Craig, Rodney Davis, Cindy Axne, Dusty Johnson, Mark Pocan, and Adrian Smith – for prioritizing homegrown, clean fuels to boost America’s energy independence.”
You can find the full text of the letter here and below.
March 31, 2022
The Honorable Joseph R. Biden, Jr.
President of the United States
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear President Biden:
Russia’s unjustified and brutal attack on Ukrainian sovereignty and Ukrainian citizens demands the type of unified domestic and international response that the United States has led over the past month. Given the Russian economy’s reliance on petroleum exports, banning the importation of Russian oil and natural gas into the United States was the right decision.
To ensure that this ban – and future actions that the U.S. may need to take to defeat Russian aggression – is economically sustainable for the American economy and American people, we urge you to consider the following actions that would prioritize homegrown and renewable biofuels. Taken together, these actions would significantly increase U.S. energy independence, lower prices at the pump and ensure the continued success of our sanctions on the Russian economy.
- Permanently reinstate the year-round availability of E15 by directing the Environmental Protection Agency (EPA) to use its authority pursuant to Section 211(c)(4)(C)(ii) of the Clean Air Act or by taking executive action to respond to a potential energy crisis triggered by Russian aggression on the international stage.
- Support ethanol and biodiesel by directing the EPA to reverse its course on the proposed retroactive reduction to 2020 and 2021 Renewable Volume Obligations (RVOs) and adhere to the Renewable Fuel Standard’s (RFS) statutory obligations.
Upholding the RFS and permanently reinstating the year-round availability of E-15 would lower fuel prices for hardworking Americans. Ethanol, biodiesel, and renewable diesel add to the nation’s fuel supply, lowering prices at the pump for nearly every consumer good that moves along the supply chain. Over the last decade, wholesale ethanol has saved consumers 17% when compared to wholesale gasoline. A recent report indicated that a nationwide shift to E15 could collectively save U.S. consumers more than $12 billion annually. And according to a recent World Agricultural Economic and Environmental Services (WAEES) study, availability of biodiesel and renewable diesel has saved consumers an average of 31 cents per gallon at the pump over the last ten years.
These actions would generate economic growth in rural communities that would reduce the impact of inflation on Americans’ pocketbooks. For example, ensuring the year-round availability of E15 would support an additional 182,600 jobs and generate an additional $17.8 billion in economic activity. Because ethanol production involves U.S. farmers and processing plants located in rural communities, these benefits would be most directly felt in rural America.
Finally, these actions would significantly increase U.S. energy independence and lessen the domestic impact of our ban on Russian energy imports by replacing them with U.S. biofuels. For example, about 8% of U.S. imports of oil and refined petroleum products come from Russia. Ensuring the year-round sale of E15 would potentially replace up to 5% of the liquid petroleum-based gasoline in the U.S. transportation sector with homegrown biofuels. Protecting the RFS from retroactive reductions will ensure that biodiesel can fill liquid energy deficiencies created by trade and market instability.
The American people and this Congress stand united in our resolve to support the Ukrainian people in the face of Russian aggression and imperialism. We will take the actions necessary to ensure democracy in Ukraine endures. Increasing domestic energy production is an important part of our effort to sustain sanctions on the Russian economy, and we urge you to increase U.S. energy independence and decrease
Read the original press release here.
Mar 29, 2022
A bipartisan group of lawmakers is urging the administration to allow year-round sales of E15 to help combat rising domestic energy costs and reduce reliance on foreign energy sources.
Senator Sherrod Brown says “the best lesson here is we have to broaden our energy production and that means more E15 fuel.”
The Ohio democrat tells Brownfield it’s critical to expand the availability of U.S. biofuels following the import ban on Russian oil.
“We have a lot of opportunities to broaden our energy inputs, which will stabilize prices and, frankly, will finally push Russian oil more off the world market,” he says.
Brown, a senior member of the Senate Agriculture Committee, co-sponsored the recent letter to President Biden.
The senators say American biofuels are a clean and reliable energy solution that will help drive down fuel costs for consumers.
The letter was signed by a bipartisan group of senators including John Thune of South Dakota, Dick Durbin of Illinois, Tammy Baldwin of Wisconsin, Tammy Duckworth of Illinois, Joni Ernst of Iowa, Deb Fischer of Nebraska, Chuck Grassley of Iowa, Amy Klobuchar of Minnesota, Roger Marshall of Kansas, Jerry Moran of Kansas, Mike Rounds of South Dakota, Ben Sasse of Nebraska, Tina Smith of Minnesota, Debbie Stabenow of Michigan, and Kevin Cramer of North Dakota.
Read the original story here.
Mar 28, 2022
Sales of E85 flex fuel in California surged to a new record in 2021, jumping 55 percent over 2020 levels and nearly doubling since 2018, according to new data released by the California Air Resources Board (CARB). Last year, California drivers purchased nearly 62.5 million gallons (mg) of E85 flex fuel, a blend containing up to 85 percent ethanol and 15 percent gasoline, for use in flex-fuel vehicles (FFVs). That’s up from about 40 mg in both 2019 and 2020, and 33.8 mg in 2018.
The surge in California E85 sales has accelerated further in 2022, as record-high prices for regular E10 gasoline are driving greater demand for lower-cost, lower-carbon alternatives. In recent weeks, E85 has typically been priced 30-50 percent below gasoline at stations across the Golden State.
California is one of just a handful of states that reports annual E85 sales volumes, but Renewable Fuels Association President and CEO Geoff Cooper said it is safe to assume that California now leads the nation in consumption of low-carbon flex fuels.
“During this time of record-high gas prices and heightened concerns about climate change, California drivers are seeking out options at the pump that are both more affordable and better for the environment,” Cooper said. “E85 satisfies both of those consumer demands. This new data show that when the fuel is made available and marketed properly, FFV drivers will absolutely respond. The combination of the California Low Carbon Fuel Standard, federal Renewable Fuel Standard, and a concerted promotional campaign by innovative retailers proves that the so-called ‘ethanol blend wall’ is a fictional barrier that can be eradicated with smart policy and marketing efforts.”
California’s largest provider of E85 noted that the momentum witnessed in 2021 has continued to build in 2022. “Demand for E85 has been on the rise this year, with increases of over 20 percent from January to February, and we expect to see the same for March,” said Greg Jones, Director of Business Development at Pearson Fuels. “We always want to encourage motorists to check their gas caps to see if they're driving a flex-fuel vehicle, and we are seeing more and more Californians taking advantage of our website and mobile app to find E85 stations near them. Drivers are seeing a real difference and saving quite a bit of money. In addition to that, we're focusing on blending our E85 with renewable naphtha, resulting in a nearly 100 percent renewable fuel that is 60 percent lower in greenhouse gas emissions compared to unleaded gasoline. We believe E85 can play an important role for decades and has the opportunity to become a low carbon fuel option for the millions of drivers who own these vehicles.”
Data from the California Energy Commission show that the number of FFVs on California roadways was nearly double the amount of electric vehicles at the end of 2020.
Read the original story here.
Mar 23, 2022
Legislation introduced in the Minnesota House of Representatives on March 17 aims to create a reimbursement program that would help fuel retailers install equipment compatible with higher blends of ethanol and biodiesel. The bill, tilted the Liquid Fuel Modernization Act, or HF 4328, is supported by the Minnesota Corn Growers Association.
Beginning on July 1, 2022, the bill would impose a liquid fuel modernization fee on the use of tanks that contain petroleum products. The rate of the fee would be set at $13 per 1,000 gallons, which equates to 1.3 cents per gallon. The fee would be in place through June 30, 2023.
Proceeds from the liquid fuel modernization fee would be used to reimburse eligible entities for a portion of the costs to acquire and install eligible fuel infrastructure. Reimbursements would be limited to 65 percent of total reasonable equipment and labor costs, with a cap of $800,000 per eligible entity each year. Applicants must use the eligible fuel infrastructure to offer higher blends of biofuel for sale at the retail fueling site or to store higher blends of biofuel at the bulk plant. Higher blends of biofuel are defined as gasoline blends containing more than 10 percent ethanol and diesel blends containing more than 20 percent biodiesel.
MCGA has spoken out in support of the bill, noting it aims to provide the resources needed for infrastructure improvements enabling every fuel retailer in Minnesota to offer higher ethanol blends within the next decade. According to MCGA, the program would aim to reimburse $52 million annually for equipment replacements at fuel retailers.
A full copy of HF 4328 is available on the Minnesota Legislature website.
Read the original story here.
Mar 22, 2022
Gevo Inc. has signed a take-or-pay agreement with Delta Air Lines Inc. to supply 75 million gallons of sustainable aviation fuel (SAF) per year for seven years. Based on current assumptions, including those around future pricing of commodities and the future values of certain environmental benefits, Gevo estimates that the agreement should generate approximately $2.8 billion of revenue, inclusive of the value from environmental benefits, for Gevo over the seven-year term of the agreement.
The agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year and bolsters Delta’s commitment to incorporating SAF into its operations.
“On behalf of the entire team at Gevo, I want to congratulate our partners at Delta for their leadership in continuously pushing the aviation industry towards net-zero emissions. Delta makes for a great customer, recognizing that big change is needed. I also appreciate their faith in what we are doing at Gevo. Net-zero jet fuels matter. We expect production from our first Net-Zero plant to begin in 2025. To meet the demand that we now have under contract, we need to develop and build more than one Net-Zero plant. This is a happy problem to have,” said Patrick R. Gruber, Ph.D., Gevo’s CEO.
“Net-Zero Fuels are made by using low-carbon feedstocks produced with climate-smart agricultural practices and by eliminating fossil-based energy from the business system as much as possible. In addition, our customers depend on us to count carbon at every step of the process,” said Paul D. Bloom, Ph.D., Gevo’s chief carbon officer, and chief innovation officer. Bloom continued, “By accurately accounting for carbon emissions using Argonne National Laboratories GREET model along with our Verity Tracking platform we will provide confidence to our customers like Delta that scientifically robust and transparent methods are used to meet and measure their sustainability goals. We want to create a win-win value proposition for every participant in the SAF supply chain by tracking all carbon intensity benefits in our SAF.”
“SAF is a critically important lever we have available today to help our industry reduce the lifecycle carbon emissions from aviation fuel,” said Kelly Nodzak, Delta’s director of global jet fuel procurement. “That’s why we are working to develop the market and a broader understanding of the effectiveness of SAF, which can reduce lifecycle emissions up to 80 percent when used in pure form compared to fossil jet fuels.”
“With the right policies and incentives in place, we can unlock a future where sustainable aviation fuel is a viable climate solution that benefits air travel and beyond,” said Amelia DeLuca, Delta’s vice president of sustainability. “SAF production creates good-paying jobs in manufacturing, improves the environmental quality for all, and fosters rural economic opportunity for feedstocks and pathways. It will help us protect the planet we share and the places we call home.”
Gevo has remained focused on sustainability at every stage of production. Gevo has developed two alcohol-to-jet pathways that can utilize various low-carbon feedstocks grown using sustainable agriculture. These feedstocks can then be converted, in some cases, to high-value nutritional products and energy-dense liquid hydrocarbons, including SAF. Gevo’s production processes will incorporate renewable energy, including wind turbines, biogas, and combined heat and power systems (CHP) to increase efficiency and reduce carbon intensity to net-zero levels, which the customer can then pass on through the fuel.
The agreement is subject to certain conditions precedent, including Gevo developing, financing and constructing one or more production facilities to produce the SAF contemplated by the Agreement. A copy of the Agreement between Delta and Gevo has been filed with the U.S. Securities and Exchange Commission on Form 8-K.
Read the original story here.
Mar 22, 2022
An important new assessment published by experts from the Department of Energy’s Argonne National Laboratory, Purdue University, and the University of Illinois system found major flaws in a recent paper that made unfounded allegations about the greenhouse gas benefits of ethanol compared to gasoline.
Responding to the report Environmental Outcomes of the US Renewable Fuel Standard, which was led by Tyler Lark of the University of Wisconsin, the authors stated, “After a detailed technical review of the modeling practices and data used by Lark et al., we conclude that the results and conclusions provided by the authors are based on several questionable assumptions and a simple modeling approach that has resulted in overestimation of the GHG emissions of corn ethanol.”
Renewable Fuels Association President and CEO Geoff Cooper responded to the release of the assessment. “It has been well established that ethanol reduces greenhouse gas emissions by roughly half compared to gasoline. Unfortunately, a recently published report that attacked ethanol made headlines despite its obvious errors,” said Cooper. “Now that light has been shown on these flaws, we call on the news media to correct the record—particularly those who were so quick to report this now thoroughly debunked attack. Ethanol is a renewable, domestically produced fuel that is lower in cost and lower in carbon than gasoline. Today more than ever, it’s also vital for energy security.”
A number of problems with the study by Lark et al. were pointed out, including:
- The land-use changes identified by Lark et al. likely reflect the conversion of fallow or idle land to crops rather than permanent grasslands.
- Lark et al. likely overestimated soil organic carbon (SOC) loss by a factor of two to eight as a result of the incorrect application of carbon response functions. The authors noted that “the validation of the SOC emissions model used by Lark et al. … showed remarkably poor fit to measured SOC changes.” This is important, since a foundational assertion in the recent study was that emissions related to land-use change are higher than commonly recognized.
- Lark appeared to have double-counted the emissions of nitrous oxide—a greenhouse gas—from the use of fertilizer in corn production by adding them in while overlooking the fact that they are already included in the corn-farming-related emissions in the main lifecycle assessment models.
- Lark attributed 5.5 billion gallons of ethanol per year to the expanded Renewable Fuel Standard (RFS2) between 2008 and 2016 by comparing the volume under RFS2 and RFS1 without considering other significant drivers of ethanol production.
- The validity of picking the limited time period of 2006-2010 to assess price impacts associated with RFS2 is questionable. This does not align with the 2008-2016 timeframe for the study by Lark et al., and significant price increases occurred during this period.
When the Lark paper was first published, RFA posted a preliminary rebuttal of the effort and noted in a blog post that the association had tried to work with Lark, but to no avail. “We asked how we could work together to ensure their error-ridden satellite analysis of land-use changes was grounded in reality,” Cooper wrote. “We never heard back from them. RFA is always open to having an honest, fact-based discussion about the impacts of ethanol and the RFS on the environment and economy.”
Read the original story here.
Mar 21, 2022
WASHINGTON, DC — Today, U.S. Representatives Angie Craig (D-MN), Randy Feenstra (R-IA), Cheri Bustos (D-IL) and Ashley Hinson (R-IA) introduced the Home Front Energy Independence Act, which would expand the production and availability of American biofuels. In an effort to lower energy costs for working families and support economic growth in rural communities, Craig and Feenstra introduced the legislation following last week’s vote to ban imports of Russian energy products.
Specifically, the Home Front Energy Independence Act would:
- Make E15 available year-round
- Establish an E15 Tax Credit and Extend the Tax Credit for Biodiesel
- Direct the EPA to finalize their E15 labeling rule
- Provide for biofuel infrastructure and compatibility with retailers
U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) introduced companion legislation in the Senate last week.
“E15 and higher blend biofuels can serve as a cheaper alternative for working families while helping to expand markets for family farmers, support economic growth in rural America and cut down on dangerous pollutants released into the air we breathe,” said Representative Craig. “Especially as we work to lessen our dependence on foreign energy producers and hold Russia accountable for its unjustified invasion of Ukraine, our bipartisan legislation to prioritize home-grown domestic biofuels should be taken up without delay.”
“Iowans are paying the highest prices for gas in more than a decade, and there is no indication that the cost of fuel will decrease any time soon,” said Representative Feenstra. “Fortunately, higher blend biofuels and E15 can lower fuel prices and end our reliance on foreign energy, but we can only achieve these goals by making E-15 available year-round. I’m proud to co-lead this bipartisan legislation with my House colleagues to do just that and thank Senator Ernst and Senator Klobuchar for introducing this bill in the Senate. By cutting red tape and unleashing American energy production, we can lower gas prices, bolster biofuels production, and make our country energy independent once again.”
“Vladimir Putin’s invasion of Ukraine has brought to light the importance of energy independence and the value of domestic energy production here the United States. With the cost of this war hitting Americans at the gas pump, it’s time to bolster our fuel supply with home-grown biofuels,” said Representative Bustos. “Not only would this cut gas prices for consumers, but it would also reduce emissions and support our family farmers. I’m proud to join my colleagues on the bipartisan, bicameral Homefront Energy Independence Act to make E-15 available year-round.”
“The solution to the current energy affordability crisis that is squeezing working families across the country shouldn’t come from Russia, Iran, or Venezuela—it has to come from America,” said Representative Hinson. “The bipartisan Homefront Energy Independence Act will finally unleash the abundant domestic energy resources that we’ve been sitting on, including Iowa biofuels and allow the sale of E-15 year-round. This bipartisan solution will lower costs at the pump, bolster our fuel supply, and improve our national security.”
The bipartisan legislation will also codify into law full restrictions on U.S. purchases of Russian oil until the president determines Russia recognizes the sovereignty and territorial integrity of Ukraine. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing – roughly 83 million barrels versus 87 million barrels.
The Home Front Energy Independence Act is supported by Growth Energy, the Renewable Fuels Association, Clean Fuels Alliance America and the National Corn Growers Association.
“We have an opportunity to lower prices at the pump today for American drivers by increasing access to E15 fuel,” said Growth Energy CEO Emily Skor. “As gas prices across the country hit historic highs, higher blends like E15 have been selling for, in some instances, more than 50 cents cheaper per gallon. The Home Front Energy Independence Act would increase access to these cost savings across the country and all year long. The war in Ukraine has also thrown America’s reliance on foreign oil, and the market uncertainty it creates, into the spotlight. The Home Front Energy Independence Act would boost U.S. energy security by increasing the supply of lower-cost, homegrown biofuels available to drivers.”
“The fastest way to put a lid on record-high gas prices is to empower greater use of low-cost renewable fuels, and that’s exactly what this bill would do. This commonsense legislation would bring immediate economic relief to American families who are experiencing unprecedented pain at the pump, while simultaneously reducing emissions of greenhouse gases and tailpipe pollutants linked to cancer, heart disease, and respiratory illnesses,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “Not only would the bill eliminate dependence on Russian oil imports, but it would also ensure that those imports are replaced by more affordable renewable fuels produced right here in America’s heartland. We applaud these House members for offering this smart solution.”
"The more than 65,000 U.S. workers in the biodiesel and renewable diesel industry stand ready to meet the nation’s need for cleaner, better transportation fuels,” said Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels Alliance America. “Over the past two years, biodiesel and renewable diesel producers worked hard to maintain fuel supplies and provide value to consumers. Clean Fuels and its members applaud the strong, bipartisan action that Representatives Craig, Feenstra, Bustos and Hinson are proposing to boost America’s energy independence.”
“Corn farmers appreciate the leadership of Representatives Craig, Feenstra, Bustos and Hinson, calling for expanded use of biofuels to lower fuel costs and improve our energy security,” said National Corn Growers Association President Chris Edgington. “Blending more ethanol is an immediate step to help lower fuel prices, and ensure drivers continue to have access to lower-cost and lower-emission E15. Renewable ethanol adds billions of gallons to our fuel supply every year, lowering demand for high-cost oil while increasing total fuel available to consumers.”
Read the original press release here.
Mar 16, 2022
As the United States continues to recover from the COVID-19 pandemic, inflation is on the rise, and consumers everywhere are looking to stretch their dollars as far as possible.
That’s especially true in fuel markets, where turmoil in Ukraine offers another reminder why U.S. energy security is a pocketbook issue for American families. Fortunately, there are steps we can take to help diversify energy supplies, including the use of newer biofuel blends on offer by select retailers in the state of Minnesota.
In fact, the latest state Department of Commerce report shows that Minnesota outpaces every other state – including Iowa – in the sales of higher biofuel blends like Unleaded 88, containing 15 percent homegrown ethanol. Not only does Unleaded 88 offer greater octane, but it also allows drivers to save an extra 15 cents or more per gallon. And while lawmakers in St. Paul cannot control U.S. energy policy, they are actively considering legislation to help make E15 available statewide.
Those efforts would not only protect drivers by diversifying our fuel supply, but they could also support significant economic growth in Greater Minnesota, which is home to 19 ethanol plants. Currently, ethanol supports approximately 22,810 jobs Minnesota jobs and contributes $6.1 billion annually to our state’s economy.
Access to new markets for biofuel blends like E15 would expand that footprint. A recent study from ABF Economics found that statewide E15 would add $313 million in GDP to Minnesota’s economy and generate an added $27 million in tax revenues. Wider access to E15 also would greatly benefit our state’s corn farmers, resulting in demand for an additional 43 million bushels of corn annually.
At the same time, higher biofuel blends are a great option for motorists looking for a simple, affordable way to help reduce emissions. In fact, recent estimates show that statewide sales of E15 would reduce greenhouse emissions by 332,000 metric tons – equivalent to taking more than 72,600 vehicles off Minnesota roads each year.
That’s a win for everyone – from farmers to the environment – and the retail data shows that consumers are excited to make the switch. As Minnesota Corn Research and Promotion Council Chair Brandon Fast recently noted, “We have known for years that Unleaded 88 and other higher-blend biofuels are better for air quality, boost octane and cost less. It’s gratifying to see consumers responding by making that choice at the pump.”
Due to United States Supreme Court reversing year-round sales of E15/Unl 88, Minnesota retailers cannot even sell E15 from June 1 through Sept. 15. Hoping Governor Tim Walz and members of Congress can assist Minnesota fuel retailers, farmers and consumers this coming summer save money at the pump and sell a homegrown fuel from hometown fuel retailers.
Read the original story here.