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EPA Mulls Counting Ethanol Exports Against Mandates: Sources

September 27, 2017

The Environmental Protection Agency is considering a change to U.S. biofuels policy that would allow exports of ethanol to count toward the country’s annual biofuels volumes mandates, two sources familiar with the matter told Reuters on Wednesday.

The proposal would represent a significant shift from the original mandate of the 2005 renewable fuel program, designed to increase the amount ethanol and biodiesel in the country’s fuel pool while boosting the U.S. agricultural sector.

The move would benefit U.S. merchant refiners like Valero and PBF Energy, who are required under the U.S. Renewable Fuel Standard to blend increasing volumes of ethanol and other biofuels into the country’s gasoline and diesel every year, at a cost of hundreds of millions of dollars.

The refiners, led by billionaire Carl Icahn, fought to get the Trump Administration to shift the obligation further down the supply chain, but those efforts failed.

The current proposal, still in the discussion stage in the office of EPA Administrator Scott Pruitt, is seen as a way to reduce their financial burden.

Under the program, refiners must either blend the renewable fuels into the fuel pool or buy credits from those who do.

Currently, U.S. biofuels policy only counts fuels blended in the United States toward the annual volumes mandates and does not count ethanol that is produced in the United States and exported for use abroad.

By counting the exports, it would increase the amount of available credits by the equivalent of as much 1 billion gallons of biofuel and push down prices.

The EPA proposed a requirement that refiners and importers blend in 15 billion gallons of corn-based ethanol and other conventional renewable fuels next year. Last year, the United States exported more than 1 billion gallons of ethanol in 2016, mainly to Brazil, Canada and China, according to the Energy Information Administration.

It was unclear if the proposal would require legislative approval. If so, it would face stiff opposition from the powerful corn lobby.

The sources, who asked not to be named because they were not authorized to speak on the issue, said the EPA was considering the idea but had not made a decision.

EPA spokeswoman Liz Bowman did not respond to a request for comment.

Brooke Coleman, executive director of the Advanced Biofuels Business Council, said that counting exports was illegal under the 2007 Renewable Fuels Standard, which was supposed to increase the amount of biofuels used in the United States.

He said making such a change at a time when companies have already invested under the program was wrong and would discourage future investments.

Read the original article: EPA Mulls Counting Ethanol Exports Against Mandates: Sources

US EPA Considers Cutting 2018-19 Advanced Biofuel Mandate on Biodiesel Supply

September 26, 2017

The US Environmental Protection Agency said Tuesday it was considering cutting by up to 15% how much advanced biofuel and biodiesel must get mixed into the US fuel supply in 2018 and 2019, based on a potential spike in biodiesel prices.

The agency said new US duties expected on imports of biodiesel from Argentina and Indonesia, coupled with the expiration of a federal tax credit at the end of 2016, could disrupt biodiesel supply and drive up prices.

It asked industry in a regulatory notice to weigh in on that possibility and comment on whether EPA has statutory authority to cut volumes under the Renewable Fuel Standard. As of early Tuesday afternoon, there was no closing date for the comment period.

"EPA remains concerned about the high cost of advanced biofuels," the notice said.

RIN prices quickly reacted to the notice, plunging after a morning uptick.

Biodiesel (D4) RINs for 2017 compliance traded as low 95 cents after S&P Global Platts assessed them at $1.0375 on Monday. Ethanol (D6) RINs also tumbled, trading as low as 75 cents after Platts assessed them at 83.5 cents Monday.

In July, EPA proposed requiring refiners and blenders to mix 19.24 billion gallons of total renewable fuel, including 4.24 billion gallons of advanced biofuel, in 2018. It proposed the 2019 biodiesel blending mandate at 2.1 billion gallons.

Cutting the advanced biofuel and biodiesel portions of the blending mandate would also lower the total volume to keep conventional ethanol's share from climbing above 15 billion gallons.

EPA said the expiration of the $1/gal biodiesel blenders tax credit at the end of 2016 has had a significant impact on the effective price of biodiesel sold to blenders.

"We also expect the price of biodiesel used in the US could increase further following a recent preliminary determination by the Department of Commerce that it would be appropriate to place countervailing duties of 41%-68% on imports of biodiesel from Argentina and Indonesia," the notice said.

The Commerce Department is expected to make a final decision on the countervailing duty orders on December 29.

A biofuels trader said the cuts contemplated by EPA would zero out any gains domestic biodiesel producers were hoping to realize from countervailing duties.

"It was like, 'Here you go, we will impose duties on imports. Oh and by the way, for that we are reducing demand domestically,'" the trader said.

Read the original article: US EPA Considers Cutting 2018-19 Advanced Biofuel Mandate on Biodiesel Supply

Grassley: Proposed Biofuel Reduction Seems Like "Bait-And-Switch"

September 26, 2017

On Tuesday, the Environmental Protection Agency (EPA) announced they wanted comments for the potential options for reducing biofuels and renewable fuel volumes lower than those proposed in the 2018 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS).

The Notice of Data Availability (NODA) issued by the EPA outlined how the EPA could reduce the 2018 biofuel volume requirement from a proposed 4.24 billion gallons to 3.77 billion gallons, and the total renewable fuel volume requirement from a proposed 19.24 billion gallons to 18.77 billion gallons.

These proposed decreases are driven by concerns over biofuel imports.

Bob Dinneen, president and CEO of the Renewable Fuels Association, issued a statement, explaining his continuing frustrations to the proposed cuts from the EPA. It reads in part:

“There is no rationale for further lowering either the 2018 advanced biofuel volume requirement or the total renewable fuel volume…We see no statutory basis whatsoever for attempting to limit biofuel imports through the use of a general waiver.”

Sen. Chuck Grassley (R-Ia.) expressed his concerns about the opportunity for the public to comment on the potential reductions. His statement reads in part:

“It’s outrageous that the EPA would change course and propose a reduction in renewable fuel volumes. This seems like a bait-and-switch from the EPA’s prior proposal and from assurances from the President himself and Cabinet secretaries in my office prior to conformation for their strong support of renewable fuels. That’s contrary to the goal of America first. I plan to press the Administration to drop this terrible plan.”

Read the original article: Grassley: Proposed Biofuel Reduction Seems Like "Bait-And-Switch"

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U.S. Corn Ethanol Producers Aim To Out-Pump Competitors

By Michael Hirtzer

CHICAGO (Reuters) - U.S. ethanol makers, taking advantage of low corn prices, are ramping up production and expanding capacity to try to squeeze less-efficient competitors out of an overcrowded market.

The ethanol industry, which for years bolstered corn prices and U.S. farming, faces saturated domestic demand and lost exports as trade wars bite into the global market.

But U.S. producers have added more capacity in 2017 than in any of the previous six years and hit record output levels - and there is more to come.

“There’s only two speeds - there’s full throttle or off,” said Randall Doyal, chief executive officer of Al-Corn Clean Fuel in Minnesota. His company, which accounts for about 1 percent of total U.S. ethanol production, is three months ahead of schedule to double annual capacity to 120 million gallons by early 2018. “We are going to oversupply the market,” he said.

Since 2007, nearly every gallon of gasoline sold in the United States is mixed with about 10 percent ethanol as part of a mandate enacted to reduce dependence on foreign oil and boost use of renewable fuels.

Doyal said the expansion would increase fixed costs only slightly, enabling more profit per unit from higher volumes.

The top U.S. ethanol producer, Archer Daniels Midland Co, is also wielding its volume power. “We’ll probably run our plants to maximize yield,” Chief Executive Officer Juan Luciano said last month on a conference call with analysts. ADM can produce about 1.8 billion gallons annually - more than total U.S. exports last year.

The United States currently has production potential of about 16.3 billion to 16.4 billion gallons a year, according to producers and analysts, up from roughly 15.2 billion in 2016. That is more than enough to cover the call from the domestic market, which should be about 15 billion gallons in 2018, according to requirements from the Environmental Protection Agency.

Production hit 1.060 million barrels a day (44.52 million gallons) at the end of August, close to the all-time high touched at the end of January.

THIN MARGINS, HIGHER YIELDS

Average margins in the top ethanol state of Iowa hit a 2017 high of 30 cents a gallon in August. That was less than a third of the record highs seen in late 2014, despite corn prices near one-year lows. Efficiencies have boosted yields only slightly, to 2.91 gallons from a bushel of corn from 2.84 gallons last year, according to the Renewable Fuels Association.

Exports, which sucked up much of the oversupply last year at 1.17 billion gallons, were up 30 percent in the first seven months of this year to 803 million gallons.But now that outlet is under threat after Brazil and China - the second- and third-biggest importers in 2016 after longtime No. 1 buyer Canada - slapped on tariffs. China’s imports plunged to 53,000 gallons through the end of July from 146 million gallons in the same period of 2016 after tariff hikes in January, while Brazil set a limit on tax-free imports on Sept. 1.

“Added capacity for the industry will have to lean heavily on exports, and that’s why the Brazil decision is so damaging,” said Scott Irwin, agricultural economist for the University of Illinois.

Those that can, continue to ramp up output. No. 2 ethanol maker POET LLC, which can make nearly 1.6 billion gallons, is spending $120 million to expand an Ohio plant to 150 million gallons from 70 million gallons by late 2018.

Ring-Neck Energy & Feed LLC is pouring concrete for a $140 million plant in South Dakota and Tharaldson Ethanol of North Dakota has a $3.4 million expansion funded in part with a $341,000 federal grant.

Those that cannot expand could face closure, said John Christianson of consultancy Christianson & Associates.

“There’s a laggard group that hasn’t had the ability to improve themselves,” he said, declining to name specific companies. “If we produce too much... there’s a bottom group that runs out of cash and they will shut down.”

Read the original story here.

Al-Corn Clean Fuel Members Vote To Become Limited Liability Company

Sept 19, 2017

Claremont, Minnesota – By an overwhelming majority the membership of Al-Corn Clean Fuel has voted to convert from a cooperative to a Limited Liability Company (LLC). The results of the shareholder vote were announced this morning by Rodney Jorgenson, Chairman of the Board of Al-Corn Clean Fuel.

Al-Corn Clean Fuel, LLC will be acquiring all of its corn for operations on the open market through traditional pricing methods, as well as average pricing contracts and other methods as determined by management.

“Without our member’s willingness to grow and compete in an ever changing business environment, we wouldn’t be here today.” said Rod Jorgenson, President of Al-Corn Clean Fuel. “We have begun moving forward to allow the conversion to become a reality while ensuring our current operations continue running smoothly”.

Al-Corn Clean Fuel, LLC is currently expanding and modernizing the Claremont facility from 50 million gallons per year to 120 million gallons per year, including storage for 1.5 million bushels of corn to facilitate deliveries. Once complete, the expansion will require an additional 25 – 27 million bushels of corn annually.

“By increasing the production capacity of the Claremont plant, we will be able to drive down cost of production and reach better price markets. The conversion to an LLC was necessary for Al-Corn Clean Fuel to realize the full potential of the expansion and modernization project” said Jorgenson.

Senators Ask Lighthizer To Resolve Brazilian Tariff Issue

Ethanol Producer Magazine

By Erin Voegele

Sept 18, 2017

A bipartisan group of senators, led by Sen. Chuck Grassley, R-Iowa, is calling on U.S. Trade Representative Robert Lighthizer to work with the Brazilian government to end a recently reinstated tariff on ethanol imports.

In late August, Brazil’s Chamber of Foreign Trade approved a recommendation to impose a 20 percent tariff on U.S. ethanol imports in excess of 600 million liters (158 million gallons) annually.

According to information released by Grassley’s office, the U.S. exported 264 million gallons of ethanol to Brazil last year. This year, current trends indicate exports to Brazil could be even higher. Grassley cites U.S. producers as stating that Brazil’s tariff plan is “a trade barrier that threatens over $750 million in U.S. exports and American jobs.”

On Sept. 15, the senators sent a letter to Lighthizer, asking him to directly engage the Brazilian government and quickly work to resolve the issue.

“For several years, the U.S. and Brazil have engaged in ethanol trade which signaled the maturing and global nature of the biofuels industry,” wrote the senators in the letter. “However, this new action by Brazil’s Chamber of Foreign Trade indicates a potential turning point in how ethanol moves between our respective countries.”

The letter notes that the U.S. renewable fuels industry has invested heavily in ethanol plants, feedstock development and infrastructure over the past several decades, advancing the industry. Similar investments have also been made in other countries, including Brazil. “Unfortunately, seemingly arbitrary or protectionist tariffs are threatening to disrupt the growing global market that has developed for ethanol,” the letter continues. “We look forward to working with you to address the concerns regarding Brazil’s actions.”

In addition to Grassley, the letter was signed by Sens. Joni Ernst, R-Iowa; Deb Fischer, R-Neb.; Joe Donnelly, D-Ind.; Tammy Duckworth, D-Ill.; Al Franken, D-Minn.; Amy Klobuchar, D-Minn.; Debbie Stabenow, D-Mich.; Ben Sasse, R-Neb; and Dick Durbin, D-Ill.

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

Read the original story here.

Enerkem Begins Commercial Production Of Cellulosic Ethanol From Garbage At Its State-Of-The-Art Edmonton Biofuels Facility

Sept 15, 2017

MONTRÉAL - Enerkem Inc, a world leading biofuels and renewable chemicals producer, announced today it has started the commercial production of cellulosic ethanol.

Enerkem's game-changing facility in Edmonton, AB, Canada, is the first commercial-scale plant in the world to produce cellulosic ethanol made from non-recyclable, non-compostable mixed municipal solid waste.

The company has been producing and selling biomethanol since 2016, prior to expanding production to include cellulosic ethanol with the installation of its methanol-to-ethanol conversion unit earlier this year.

"The commercial production of cellulosic ethanol at our facility in Edmonton marks a landmark moment for our company as well as our customers in the waste management and petrochemical sectors, and confirms our leadership in the advanced biofuels market," says Vincent Chornet, President and Chief Executive Officer of Enerkem.

This growing global market is expected to reach 124 billion liters per year by 2030 according to the International Renewable Energy Agency. "We will now progressively increase production in Edmonton, while preparing to build the next Enerkem facilities locally and around the world," adds Chornet.

Advanced biofuels play a vital role in the transition towards sustainable mobility by producing transportation fuels that replace a portion of gasoline. Enerkem's technology not only provides a clean transportation fuel, it also disrupts the traditional waste landfilling and incineration models by offering a smart alternative to communities wanting to recover waste while sustainably fueling vehicles.

Edeniq Supports LCFS Pathway For Corn Kernel Fiber Ethanol

Sept 14, 2017

Visalia, Calif. – On September 7, 2017, Edeniq, Inc.’s President and CEO, Brian Thome, submitted written comments to the California Air Resources Board (CARB) supporting
final approval of Little Sioux Corn Processors’ application under California’s Low Carbon Fuel Standard (LCFS) for a pathway for cellulosic ethanol produced from corn kernel fiber at its
Marcus, Iowa plant.

In January, Little Sioux received a D3 cellulosic ethanol registration from the U.S. Environmental Protection Agency (EPA) after deploying Edeniq’s technology at its plant. Mr. Thome noted the significance of the consistency between CARB’s approval and the EPA’s approval. He also expressed support for CARB’s assignment of a 31.23 carbon intensity, validating the potential for Edeniq’s technology to help California achieve the greenhouse gas reduction goals of the LCFS.

“We commend CARB’s work toward finalizing Little Sioux’s cellulosic ethanol application,” Mr. Thome said. “Approval of the first LCFS Pathway for corn kernel fiber cellulosic ethanol is an exciting milestone that paves the way for California to become a leading market for cellulosic ethanol. We believe that cellulosic ethanol is the cleanest transportation fuel and are encouraged by the support from CARB and the EPA for low-cost cellulosic ethanol made from corn kernel fiber at existing ethanol plants.”

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China Set for Ethanol Binge as Beijing Pumps Up Renewable Fuel Drive

September 13, 2017

By Reuters

China's bold plan to blend renewable fuels into its gasoline supply within three years will revolutionise its fledging biofuels industry, industry players said, likely spurring billions of dollars in investment in ethanol factories.

On Wednesday, state media reported Beijing plans to roll out the use of a gasoline known as 'E10' - containing 10 percent ethanol - across the world's largest car market by 2020. It's the first formal timeline in a radical push that's part of a broader drive to clean up the environment.

The move doubles up as part of the government's effort to boost industrial demand for corn. Beijing must find a way to work off a stockpile of 200 million tonnes - so big it could feed China's 1.4 billion people for more than a year - after decades of buying the crop to support farmers in a country haunted by post World War II famine.

"More money will now flow in, including from private and foreign investors," said Li Qiang, chairman of consultancy JC Intelligence Ltd, predicting boom times for ethanol. More than 10 new ethanol plants are planned in the northeastern cornbelt, according to JC Intelligence.

Most of those will go on line next year, adding 3 million tonnes of capacity, the consultancy predicts. Reuters estimates, based on industry officials' calculations, suggest an ethanol plant of average capacity - about 300,000 tonnes per year - costs about 1 billion yuan (£115.46 million) to build.

While sceptics may question the feasibility of such a rapid rollout, Wednesday's news also comes days after Beijing said it is studying when to ban production and sale of cars using fossil fuels. It adds to potential headaches for the oil industry, which could lose a sizeable portion of the 150-million-tonne gasoline market worth 26.2 billion yuan at current retail prices.

The planned rollout marks a major victory for domestic ethanol producers, which have struggled to compete with cheap oil without a nationwide mandate that requires a minimum amount of biofuel must be blended into fuel - similar to the United States and Brazil, the world's top two markets for ethanol.

Ethanol-blended gasoline makes up only a fifth of gasoline use in China for now.

"We have been waiting for this policy for many years and now the shoe has finally dropped," said a manager at a major ethanol producer, who declined to be named as he was not authorised to speak to media.

According to Reuters calculations, as much as 15 million tonnes of ethanol could be needed each year to meet new demand. That's well above the target Beijing announced in December last year - doubling output to 4 million by 2020.

It could also mean building as many as 36 new plants each with 300,000 tonnes per year of capacity at an estimated cost of 36 billion yuan, according to Reuters calculations based on experts' estimates.

Those factories would need 45 million tonnes of corn as feed, potentially depleting the government stockpile in just over four years.

Experts question how Beijing will implement the plan so quickly and on such a vast scale, but Beijing is likely to take a leaf out of the United States' play book.

Its decade-old renewable fuels policy illustrates how government backing has transformed the U.S. cornbelt and built a biofuels sector. Ethanol demand soared by 208 percent and industrial corn use more than doubled between 2005 and 2010.

But the seeds of ethanol growth in China - the first in a decade - emerged this year already, as firms sought to take advantage of lower corn prices and hefty import tariffs on ethanol introduced in January, fueling the plant construction in the northeast.

Read the original article: China Set for Ethanol Binge as Beijing Pumps Up Renewable Fuel Drive

Al-Corn Expansion on-Budget, Under-Schedule, CEO Says

Owatonna People's Press

September 7, 2017

By William Morris

Al-Corn Clean Fuel is ahead of schedule on the major expansion of its Claremont ethanol plant, and approaching a final decision as well on whether to remain a farmer-owned cooperative or switch to a different type of legal organization.

The plant broke ground last year on a $146 million expansion project that, when completed, will more than double the plant’s capacity from 50 million to 120 million gallons of ethanol per year. The project originally was slated for completed next July, but now, CEO Randy Doyal said, they’re anticipating wrapping up work in March or April.

“They do a really good job of [project management],” Doyal said of general contractor McGough Construction. “They work really well with our engineering firm, KFI, also out of the Cities. This is very much a Minnesota project. That’s pretty cool.”

On a tour around the property, Doyal can point out numerous new features under construction: a retention pond that will ensure the project releases even less runoff after completion than when it was farmland; a massive rail loop to the west of the plant, large enough for three 110-car trains to load or offload; the 300-ton and 550-ton cranes, and in particular three giant concrete silos and grinder units erected in one non-stop 90-hour pour, Doyal said.

“They form the steel and then start pouring the concrete. It’s a very slow pour, so the amount of concrete they’re using isn’t coming super fast,” Doyal said. “It’s a quick-setting concrete, and they pour it around in the ring, and do the next set of steel, the next set of concrete, and they’re lifting the ring about ¾ inch every 2 minutes. It’s one continuous pour.”

The project is right on budget as well, he said, and should remain that way short of some major equipment issue. And in August, the Environmental Protection Agency certified that the completed plant will produce ethanol with 22.4 percent fewer greenhouse gas emissions than equivalent gasoline energy, beating the 20 percent threshold needed to sell ethanol for domestic fuel production. And Doyal said the agency’s baseline figures are probably conservative.

“In real numbers, it would probably be 50 percent below gasoline,” he said.

Since its founding, Al-Corn has been a cooperative, required by law to receive at least 50 percent of the grain it processes from its members. The expansion was almost derailed in 2015, when shareholders rejected a vote to issue additional shares to cover the increased capacity for the expanded plant, and went forward with several question marks still remaining about how the plant would be supported.

The new plan, which Doyal said is currently awaiting voting from members, is to convert Al-Corn into a limited liability corporation, which would convert existing shares into ownership units and relieve owners of the obligation to supply corn each year.

“We’re waiting on the vote on that right now, but I’ve had a lot of members saying, ‘Thanks, this is exactly what I was looking for,’” Doyal said.

A big appeal of the LLC model is that it makes it easy for aging farmers, some of whom have been with the cooperative for 25 years, to pass on or dispose of their shares as they retire.

“They want something where it’s easier to get out, easier for estate planning, and I think the vote will be positive,” Doyal said.

Ballots for that vote are due back Sept. 19.

Read the original article: Al-Corn Expansion on-Budget, Under-Schedule, CEO Says

Vietnam Reopens Market to U.S. DDGS Exports

September 6, 2017

The U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR) announced that the government of Vietnam has notified the U.S. that it will resume imports of American distillers dried grains (DDGS). In December 2016, Vietnam suspended imports of U.S. DDGS after reported detections of quarantine pests in U.S. shipments. Prior to the suspension, Vietnam was the third-largest market for U.S. DDGS, with exports valued at more than $230 million in 2016. The resolution of this issue also opens the way for corn and wheat shipments, which were restricted due to previous treatment requirements.

DDGS are a co-product of ethanol production and are used as an ingredient to provide protein and energy in animal feed. Between 2007 and 2016, annual U.S. exports of DDGS worldwide grew from $392 million to $2.16 billion.

The DDGS ban is one of several agricultural and other priority issues raised in connection with Vietnamese Prime Minister Nguyen Xuan Phuc’s visit to Washington in May 2017, where he met with President Trump as well as Secretary of Agriculture Sonny Perdue and U.S. Trade Representative Robert Lighthizer. Following the series of meetings, the two governments released a joint statement pledging to work closely together to resolve the DDGS issue.

“This is great news and I am pleased that the U.S. exporters will once again be able to ship DDGS to Vietnam, which is one of the fastest-growing global markets for U.S. agriculture,” said Secretary Perdue. “Expanding markets around the world can only help American agriculture.”

“We welcome the resolution of this issue, which will help in our efforts to balance trade and deepen our trade relations with an important Asia-Pacific partner,” said Ambassador Lighthizer.

Following the suspension, representatives from USDA’s Animal and Plant Health Inspection Service (APHIS) engaged in technical discussions with Vietnam’s Ministry of Agriculture and Rural Development regarding alternative treatment options that would allow U.S. exports to resume. APHIS and USDA’s Foreign Agricultural Service (FAS) and Federal Grain Inspection Service then partnered with industry to host a delegation of Vietnamese officials to view the U.S. fumigation and export infrastructure. USTR, FAS, and U.S. Embassy officials also met with their counterparts in Vietnam.

The U.S. Government continues to work with Vietnam to address other priority agricultural issues. These include Vietnam’s adoption of Codex Maximum Residue Limits for veterinary drugs, as agreed during Prime Minister Phuc’s May visit, as well as removal of Vietnam’s ban on “white offal.”

Read the original story: Vietnam Reopens Market to U.S. DDGS Exports

More Ethanol Equals Improved Air Quality and Reduced Oil Dependency

Biofuels International

August 29, 2017

A new report from the European Commission highlights several benefits of higher ethanol blends in petrol, including reduced emissions of dangerous pollutants and improvements in car engine performance.

Carried out by the ICF for the European Commission’s Directorate-General for Climate, the study looked at the impact of higher levels of bio-components in transport fuels. It was discovered that increasing the amount of ethanol in petrol blends – for example from 5% to 10% or 20%, would have a positive effect on vehicle emissions and air quality as well as cut reliance on fossil petroleum products.

The research itself was carried out in 2015, but has only recently been published.

Among the report’s findings was the revelation that increased ethanol blends in petrol would result in reduced emissions of nitrogen oxides (NOx), hydrocarbons, (HC), carbon monoxide (CO) and particulate matter (PM). Ethanol blends reduce emissions of HC/CO/PM by 5 to 20% compared to petrol with no ethanol.

Significantly, the study also found that compared to current blending levels, the use of higher ethanol blends will not result in adverse evaporative impact levels in petrol.

Emmanuel Desplechin, secretary general of ePURE, the European renewable ethanol association, has responded to the newly published study, which comes more than six months after the Commission proposed phasing out crop based biofuels after 2020.

“This Commission report once again confirms the many benefits ethanol brings to EU transport, in addition to reducing greenhouse-gas emissions,” said Desplechin.

“Renewable ethanol, sustainably produced in Europe, already helps reduce emissions of GHG and harmful pollutants in petrol across Europe, and blends such as E10 are compatible with today’s vehicles. But with increased blends it could do even more – and help reduce Europe’s dependence on imported fossil fuel.”

“Instead of calling for a phase-out of sustainably produced biofuels like ethanol, the EU should be promoting their use,” Desplechin said.

Read the original article: More Ethanol Equals Improved Air Quality and Reduced Oil Dependency

Cellerate + Enogen Could Meet Cellulosic Ethanol Goal

August 28, 2017

By Cindy Zimmerman

If every corn ethanol plant in the country were to convert to Cellerate bolt-on technology combined with Enogen® corn enzyme technology from Syngenta, the country could more than meet the goals for cellulosic biofuels under the Renewable Fuel Standard.

“There’s a one billion to two billion gallon opportunity in the United States without grinding anymore corn,” said Delayne Johnson, CEO of Quad County Corn Processors, which developed the Cellerate technology and has collaborated with Syngenta to license it to other plants.

QCCP is already producing most of the country’s cellulosic ethanol, which last year amounted to about 176 million gallons, lower than the 230 million gallon obligation for 2016 set by EPA under the Renewable Fuel Standard, leading the agency to lower the 2018 requirement to 238 million gallons from the 311 million set for this year. But with cellulosic production finally growing and a greater potential for more, QCCP and Syngenta are among the voices commenting to EPA that now is not the time to lower the standard.

Jeff Oestmann, Head of Enogen for Syngenta, recently testified at the recent public hearing on the EPA’s latest proposed standards under the RFS. “I felt it was important to get in front of the EPA and tell our story on the cellulosic side and what we’ve been able to do with corn kernel fiber,” said Oestmann. “I had three minutes and I actually took six, so I think I got a lot across.”

Both Oestmann and Johnson are submitting comments to the EPA on the proposed rule before the deadline this week of August 31, and they encourage others to do so as well.

Listen to interviews with both from the recent American Coalition for Ethanol (ACE) annual conference here.

Read the original article Cellerate + Enogen Could Meet Cellulosic Ethanol Goal.

Biofuels and Biogas Unite in Call for Cellulosic Targets

Biofuels International

August 23, 2017

Leading US advocates for advanced liquid and gasified biofuels have united to urge the Environmental Protection Agency (EPA) to stand behind President Trump’s commitment to driving investment in the next generation of ‘homegrown’ fuels under the Renewable Fuel Standard (RFS).

Leaders of the American Biogas Council, Advanced Biofuels Business Council, Biotechnology Innovation Organisation , and Coalition for Renewable Natural Gas have co-signed a letter to EPA administrator Scott Pruitt. They call on Pruitt to reverse track on 2018 goals and waiver credits that would suppress demand for cellulosic fuels.

“Over the last decade, the RFS drove a manufacturing boom across America’s heartland during one of the most challenging global recessions in history,” the letter states.

“Advanced and cellulosic biofuels are poised to drive the next American manufacturing wave. However, our ability to achieve success will depend largely on careful administration of the RFS in several key areas”

The letter argues that the RFS needs to continue being administered in a ‘forward looking manner’, and that alternative compliance mechanisms should not be administered in such a way as to undercut interest among obligated parties in securing D3-eligible liquid or gasified fuels.

In the close of the letter, the representatives of the US biofuel and biogas industries note: “The RFS is a proven tool for promoting growth. And notwithstanding volatile global oil prices and RFS policy uncertainty, the United States remains poised to lead the world in the development and commercial deployment of the most innovative fuels in the world. These cutting-edge projects are being developed in many of the same rural areas that produce clean, American-made biofuels today.”

Read their letter here.

Read the original article: Biofuels and Biogas Unite in Call for Cellulosic Targets

USGC: Exports of US Feed Grains In All Forms Setting Records

Ethanol Producer Magazine

August 17, 2017

By U.S. Grains Council

Exports of U.S. feed grains in all forms (GIAF) are up 20 percent year-over-year from September-June to 96.9 million metric tons, according to data from the USDA and analysis by the U.S. Grains Council.

With only two months left in the 2016-‘17 marketing year, exports by this measure that is inclusive of feed grains and the products they produce could set a new record high, a result of attractive U.S. prices and diligent work by the Council to maintain long-time trading partners and find new areas of near-term demand.

U.S. ethanol exports have already reached a new all-time high at 1.15 billion gallons this marketing year, according to data collected by the U.S. Census Bureau, surpassing the 1.09 billion gallons exported in 2011-‘12. Ethanol exports to Brazil more than quadrupled to 438 million gallons, even though purchases are expected to slow in coming months.

Exports of U.S. ethanol to Canada, a key partner through the North American Free Trade Agreement, also increased to 263 million gallons, a 5 percent growth compared to the same time the year prior. And India set a new record for U.S. ethanol purchases, more than doubling year-over-year to 116 million gallons.

Exports of U.S. corn increased 36 percent year-over-year to 49.9 million tons (1.96 billion bushels), already exceeding export totals for the last five marketing years.

U.S. corn exports to Japan, the traditional top customer of U.S. corn, are up 48 percent compared to the same time the year prior to 11.5 million tons (453 million bushels), surpassing last year’s total with two months of sales remaining. U.S. corn sales to several countries have already outpaced historical sales, including a new record set for exports to Saudi Arabia, the highest exports to Taiwan since the 1994/1995 marketing year and the most corn exported to South Korea in the last 10 marketing years.

The Council is also seeing increased demand for U.S. DDGS as a result of price and efforts to promote the product in a diverse set of markets.

Sales of U.S. DDGS dropped significantly from the two largest traditional markets—China and Vietnam. While this void had a substantial impact, it left ample supply for other world buyers to purchase—and USGC programs throughout the world are helping end-users learn how to incorporate U.S. DDGS into their rations. As a result, overall purchases are only just behind last year’s export pace at 9.32 million tons. In contrast, exports to Mexico, this year’s top market, are up 9 percent year-over-year to 1.69 million tons.

Turkey now ranks as the second largest market for U.S. DDGS with exports that nearly doubled year-over-year to 1.11 million tons, the largest amount since the country started purchasing DDGS in 2004-‘05. U.S. DDGS exports to South Korea and the European Union also set new sales records at 847,000 tons and 792,000 tons, respectively.

In contrast, U.S. barley exports are down significantly, driven by a drop in sales to the top traditional customer, Mexico. But, exports to Canada and Japan jumped substantially, both already exceeding their total purchases last marketing year, to 62,700 tons (2.88 million bushels) and 22,900 tons (1.05 million bushels), respectively. In Japan, the Council’s market promotion efforts are building demand for barley food-based products, directly benefitting U.S. producers through this increase in sales. Please note the marketing year for barley differs from that of corn and runs June-May.

Export sales of U.S. sorghum also decreased significantly thus far in the marketing year. However, China kept its status as the largest customer with 3.94 million tons in purchases from September-June. Yet U.S. sorghum exports to Japan more than doubled to 182,000 tons, the highest amount in the last five years, while Mexico increased purchases of U.S. sorghum six percent year-over-year to 524,000 tons.

As the 2016-‘17 marketing year comes to an end, the Council and members are celebrating a strong export year, while at the same time preparing for a challenging 2017-‘18 marketing campaign.

Engagement with both long-standing trading partners and opportunistic buyers combined with attractive prices have allowed U.S. feed grains and coproducts to move into markets old and new. As the current marketing year ends and the new one begins, this work on market access, technical education and trade servicing will become increasingly important to secure U.S. market share and continue the Council’s mission of enabling trade, developing markets and improving lives.

Read the original article: USGC: Exports of US Feed Grains In All Forms Setting Records

EPA Approves Efficient Producer Pathway for Al-Corn Clean Fuel

Ethanol Producer Magazine

August 21, 2017

By Erin Voegele

The U.S. EPA has approved an efficient producer pathway for Al-Corn Clean Fuel, allowing the facility to generate renewable identification numbers (RINs) under the Renewable Fuel Standard for non-grandfathered volumes of ethanol. The plant, located in Claremont, Minnesota, has a nameplate capacity of 50 MMgy.

Ethanol plants that have approved efficient producer pathways are able to generate RINs for production volumes above those grandfathered under current RFS regulations. When the RFS was established in its current form, the rulemaking grandfathered in the production volume of existing corn ethanol plants. To qualify for compliance with the RFS program, any new production above the grandfathered gallons must meet a 20 percent greenhouse gas (GHG) reduction threshold when compared to the program’s gasoline baseline. The efficient producer pathway petition process is designed to aid ethanol plants in gaining pathway approval for expanded production above those grandfathered volumes.

According to documents published by the EPA, the Al-Corn Clean Fuel plant achieves a 22.4 percent GHG reduction when compared to baseline gasoline. A typical natural gas-fired dry mill ethanol plant that produces 100 percent dry distillers grains achieves a 16.8 percent GHG reduction when compared to the gasoline baseline.

Additional information on the Al-Corn Clean Fuel pathway approval is available on the EPA website.

Read the original story: EPA Approves Efficient Producer Pathway for Al-Corn Clean Fuel

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