In the News

Ethanol Producer Magazine

Jun 21, 2021

The Minnesota House of Representatives on June 19 voted 112 to 20 to pass an omnibus agriculture bill that includes $6 million to support the development of biofuel infrastructure to supply E15 blends of fuel.

The bill aims to allocate $3 million in 2022 and $3 million in 2023 for grants to upgrade retail petroleum dispensers, fuel storage tanks and other equipment that does not have the ability to be certified for use with E25. Grants would be offered for up to $200,000 per station, not to exceed 65 percent of costs.

In a  statement  released on June 18, State Rep. Paul Anderson said the funding will help building out Minnesota’s infrastructure for the expanded use of biofuels. “We hear a lot about using more electric cars to improve air quality in the future, but biofuels can have a much more immediate impact and this appropriation to aid in the transition will be helpful in that regard,” he said.

The legislation is now being considered by the Minnesota Senate.

Read the original story here.

Senator Amy Klobuchar

Jun 16, 2021

WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led a letter with 15 bicameral colleagues – including Senator Tina Smith (D-MN) – to the Environmental Protection Agency (EPA) and National Economic Council (NEC) expressing concern about reports that the Biden administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). The legislators noted that these proposals “all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS.” They proceed to recognize the consequence of such actions, writing, “Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.”

“Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets,” the legislators wrote.

The letter was signed by Senators Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Richard Durbin (D-IL), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR), and Representatives Cheri Bustos (D-IL), Cindy Axne (D-IA), Angie Craig (D-MN)  Mark Pocan (D-WI), Ron Kind (D-WI), David Scott (D-GA), Lauren Underwood (D-IL), Raja Krishnamoorthi (D-IL), and Ruben Gallego (D-AZ).

Full text of the letter can be found below and  HERE.

Dear Administrator Regan and Director Deese:

We write with significant concern about recent reports that the Administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). We support your efforts to address climate change, but we are concerned that rolling back the RFS obligation for refiners directly contradicts this work. Following through on the actions reportedly under discussion would directly undermine your commitment to address climate change and restore integrity to the RFS and we urge you to reject them.

The RFS was designed to reduce greenhouse gas emissions from the vehicle transportation sector, diversify our fuel supply, strengthen our national security, and drive economic opportunity. When allowed to work as Congress intended, the RFS has delivered on these goals while serving as the economic engine behind a growing biobased manufacturing sector across rural America and a biofuel industry with a 100 percent U.S. supply chain and a higher union density than the national average.

The proposals identified in media reports as options under consideration by the Environmental Protection Agency (EPA) have one thing in common: they all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS. If adopted, greenhouse gas emissions will increase, our reliance on oil will increase, consumers will pay more at the pump, and the U.S. economy will be harmed.

Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets. 

As your Administration continues to push for meaningful and rapid climate action, biofuels can and should play an important role in decarbonizing vehicle emissions. Recent studies demonstrate that using ethanol in place of gasoline reduces greenhouse gas emissions by almost half while biodiesel cuts greenhouse gas emissions by an average of 74 percent. Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.

We urge you to reject any actions under discussion to exempt oil refiners of their obligations under the RFS and uphold your commitment to combatting climate change and supporting our nation’s farmers.

Read the original press release here.

United States Department of Agriculture

Jun 15, 2021

WASHINGTON, June 15, 2021 — Agriculture Secretary Tom Vilsack announced today additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative. Earlier this year, Secretary Vilsack announced plans to use available pandemic assistance funds to address a number of gaps and disparities in previous rounds of aid. As part of the Pandemic Assistance initiative announced in March, USDA pledged to continue Coronavirus Food Assistance Program (CFAP) payments and to provide aid to producers and businesses left behind. Implementation of the assistance announced today will continue within 60 days to include support to timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE.

“USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid,” said Secretary Vilsack. “These investments through USDA Pandemic Assistance will help our food, agriculture and forestry sectors get back on track and plan for the future. Since January, USDA has provided more than $11 billion of assistance directly to producers and food and agriculture business.”

In March, USDA announced $6 billion (see Part 1) in available funds through Pandemic Assistance to support a number of new programs or to modify existing efforts. The following programming is planned for implementation within 60 days, which will continue to be focused on filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged and small and medium sized producers that need support most:

  • $200 million: Small, family-owned timber harvesting and hauling businesses
  • $700 million: Biofuels producers
  • Support for dairy farmers and processors:
    • $400 million: The new Dairy Donation Program to address food insecurity and mitigate food waste and loss
    • Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance
    • Approximately $580 million: Supplemental Dairy Margin Coverage for small and medium farms
  • Assistance for poultry and livestock producers left out of previous rounds of pandemic assistance:
    • Contract growers of poultry
    • Livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020 through December 26, 2020)
  • $700 million: Pandemic Response and Safety Grants for PPE and other protective measures to help specialty crop growers, meat packers and processors, seafood industry workers, among others
  • Up to $20 million: Additional organic cost share assistance, including for producers who are transitioning to organic

As the economy continues to gain strength after the Biden Administration’s historic vaccination and economic relief efforts, USDA is working with producers and agricultural businesses to ensure they have the resources and tools to thrive in 2021 and beyond. The funding associated with USDA Pandemic Assistance is meant to serve as a bridge from disruptions associated with the pandemic to longer-term investments to help build back a better food system. Through USDA’s Build Back Better initiative, USDA has already announced $5 billion in a mix of loans, grants and innovative financing to make meaningful investments to build a food system that is more resilient against shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy food produced and sourced locally and regionally by farmers and processors from diverse backgrounds.

“We have more work to do to build back a better food system, strengthen our supply chains, and make sure American agriculture gives our farming and ranching families every opportunity to earn a good living,” said Secretary Vilsack. “As the economy continues to bounce back, USDA will ensure American agriculture is ready to seize the moment.”

As USDA looks to long-term solutions to build back a better food system, the Department is committed to delivering financial assistance to farmers, ranchers, and agricultural producers and businesses who have been impacted by COVID-19 market disruptions.

Since USDA rolled out the Pandemic Assistance initiative in March, the Department has announced approximately $6.8 billion in assistance (Part II and III) to producers and agriculture entities through the following programs:

  • $6.295 billion: Coronavirus Food Assistance Program (CFAP) payments to farmers, ranchers and producers (March 24th)
  • $35 million: Value Added Producer Grants (March 5th)
  • $169.9 million: Specialty Crop Block Grants (April 13th)
  • $75 million: Gus Schumacher Nutrition Incentive Program (April 13th)
  • $37.5 million: Beginning Farmer and Rancher Development Program (April 13th)
  • $80 million: Payments to Domestic Users of Cotton (April 13th)
  • $92.2 million: Local Agriculture Market Program (May 5th)
  • Approximately $20 Million: Pandemic Cover Crop Program (June 1st)

Read the original press release here.

Ethanol Producer Magazine

Jun 14, 2021

Members of the House Biofuels Caucus sent a letter to Agriculture Secretary Tom Vilsack on June 9 urging the USDA to provide COVID-19 relief to biofuels producers under the agency’s Pandemic Assistance for Producers program.

Former President Donald Trump on Dec. 27, 2020,  signed the Consolidated Appropriations Act of 2021  into law. That bill, in part, provided for $11.2 billion in COVID-19 relief for agriculture. 

The USDA on March 24, 2021, provided guidance on how it intends to use a portion of those funds and announced its intent to provide pandemic relief to biofuel producers as part its USDA Pandemic Assistance for Producers Initiative, which the agency said aims to distribute relief resources more equitably. As part of that announcement, the agency announced plans to dedicated at least $6 billion towards new programs.

The letter authored by the House Biofuels Caucus urges Vilsack to use a portion of that $6 billion in funds to assist the biofuels industry. “Specifically, we respectfully request that you implement direct, per-gallon payments for biorefineries that were in normal operation in the first quarter of 2020 and with 2019 production year as a benchmark for providing relief,” members of the caucus wrote. “For advanced biofuels producers who operated at a market loss, we request that you implement direct payments to applicants utilizing an average net return over total costs difference between the pre and post pandemic production.”

The letter also addresses the need for USDA to invest in biofuels infrastructure. Members of the caucus applaud the  $18.4 million investments made through the Higher Blends Infrastructure Program in April  and urge further investments through the HBIIP. “Increased investments in this program will serve to help stabilize demand and bolster the ability of producers to sell into the market while expanding domestic energy production,” members of the caucus wrote.

“We continue to advocate for proactive approaches that complement COVID relief efforts to help rebuild the industry, and investments offered through the HBIIP, as well as clear and consistent labeling of higher biofuel blends including E-15 and B-20 or higher, are key for rural America to move forward with confidence,” they continued. “As markets continue to rebound, it is now more important than ever to quickly provide support, and bolster efforts that increase the demand for biofuels at home and abroad.”

The letter is signed by Reps. Rodney Davis, R-Ill.; Angie Craig, D-Minn.; Dusty Johnson, R-S.D.; Adrian Smith, R-Neb.; Cindy Axne, D-Iowa; Mark Pocan, D-Wisc.; Randy Feenstra, R-Iowa; Darin LaHood, R-Ill.; Ashley Hinson, R-Iowa; Mike Bost, R-Ill.; Mariannette Miller-Meeks, R-Iowa; Cheri Bustos, D-Ill.; Ron Kind, D-Wisc.; Tom Emmer, R-Minn.; Sam Graves, R-Mo.; Michelle Fischbach, R-Minn.; Don Bacon, R-Neb.; Ann Wagner, R-Mo.; Jim Hagedorn, R-Minn.; Adam Kinzinger, R-Ill.; James Baird, R-Ind.; and Jeff Fortenberry, R-Neb.

Read the original story here

Renewable Fuels Association

Jun 10, 2021

A recent poll found that voter support for the Renewable Fuel Standard (RFS) has hit its highest levels in at least five years.  Meanwhile, the tracking poll shows support for the use of biofuels like low-carbon ethanol has remained consistently high, with a bipartisan majority of voters expressing a favorable opinion.   The benchmark poll  was conducted at the end of May by Morning Consult, a Washington polling and news site, on behalf of the Renewable Fuel Association.

The poll found that 64 percent of respondents support the Renewable Fuel Standard, with 29 percent expressing “strong support.” This is the highest level of “strong support” for the RFS recorded since RFA began the tracking poll in 2016. It also marks the second-highest level of total support for the RFS, trailing only the two most recent polls (May 2020 and February 2021) that both found 66 percent support for the program.

“Even in times of political division and polarization, the need for cleaner, greener American-made fuels is a uniting issue,” said RFA President and CEO Geoff Cooper. “A bipartisan majority of voters support the RFS specifically and ethanol generally, and it is apparent that they want their elected officials to protect the integrity and longevity of the RFS program. Renewable fuels clearly are an area where we can find common ground and bridge broad divides.”

Among registered voters, 72 percent of Democrats, 63 percent of Republicans and 57 percent of Independents hold a favorable opinion of ethanol.  Similarly, the poll found that 76 percent of Democrats and 57 percent of Republicans supported the RFS, along with 57 percent of Independents.

The poll saw an uptick in respondents who reported a very favorable opinion of ethanol since last year, suggesting that more voters view themselves as champions and advocates for renewable fuels. Of those polled, 23 percent reported a very favorable opinion, compared to 13 percent in May 2020.

The desire for energy security is a key driver of support for biofuels. Among voters who have a favorable opinion of ethanol, being made in America was the attribute that contributed most to their favorable opinion of the fuel, of the options tested. Ethanol’s lower carbon footprint and affordability were the second and third most important attributes, respectively, according to the poll.

The poll was conducted from May 27 to 31, 2021, among a sample of 1,988 registered voters.

Read the original story here

Ethanol Producer Magazine

Jun 8, 2021

The U.S. Energy Information Administration maintained its forecasts for 2021 and 2022 ethanol production in its latest Short-Term Energy Outlook, released June 8. The outlook for 2021 and 2022 ethanol blending, however, was increased.

The EIA currently predicts U.S. fuel ethanol production will average 960,000 barrels per day in 2021, increasing to 990,000 barrels per day in 2022. Both forecasts were maintained from the  May STEO. Ethanol production averaged 910,000 barrels per day last year.

On a quarterly basis, ethanol production is expected to average 980,000 barrels per day during the second quarter of this year, increasing to 990,000 barrels per day in the third quarter, and falling slightly to 980,00 barrels per day in the fourth quarter. In 2022, ethanol production is expected to average 970,000 barrels per day in the first quarter, increase to 990,000 barrels per day in the second quarter, and reach 1 million barrels per day in the third and fourth quarters.

Ethanol blending is currently expected to average 900,000 barrels per day in 2021, and 920,000 barrels per day in 2022. Both forecasts were increased from the May STEO, which predicted ethanol blending to be at 890,000 barrels per day this year and 910,000 barrels per day next year. Ethanol blending was at 820,000 barrels per day in 2020.

Read the original story here

Ethanol Producer Magazine

Jun 7, 2021

Greenfield Global Inc., a leading producer of renewable energy solutions and a global leader in the production of high-purity specialty alcohols and solvents, announced on June 2 that it has reached an agreement with Central Farm Service for the supply of corn to its newly acquired ethanol plant in Winnebago, Minnesota.
 
Greenfield acquired the Winnebago plant end of last year and will be ready to start the production renewable ethanol of as early as the fall of this year. The Winnebago plant has a capacity of 48 million gallons of ethanol per year which is mainly produced for the purpose of low-carbon fuels.
 
Central Farm Service has 17 grain locations in southern Minnesota and northern Iowa. The CFS grain team includes 10 experienced grain marketing advisors along with the tools and information to help farmers formulate effective grain marketing plans. CFS offers daily market commentary, a variety of grain marketing contracts, online grain marketing, and online account information. 
 
The partnership also includes a takeoff agreement of the dried distillers grain products (DDGS) by CFS.  DDGS, a co-product of the ethanol production process, are an excellent source of energy and a highly nutritious animal feed.
 
CFS will begin buying corn immediately for harvest and beyond for delivery to the Greenfield Global plant in Winnebago. For more information, please contact your local CFS Grain Marketing Advisor or call us at (507) 525-1576 or visit  www.cfscoop.com.

Read the original story here.

International Flavors & Fragrances Inc

Jun 2, 2021

CEDAR RAPIDS, IA – IFF’s Health & Biosciences division, a world leader in sustainable biotechnology solutions, announced today that they have entered into an agreement to offer advanced yeasts for first generation ethanol production developed by DSM Bio-based Products & Services. Under the terms of this agreement, DSM’s eBoost® product line will immediately become part of IFF’s XCELIS® Ethanol Solutions platform and will be offered and supported by IFF’s experienced global commercial team. In addition, IFF’s R&D team will collaborate with DSM scientists to accelerate IFF’s on-going development of high-performance yeast products. By combining the strengths of the companies’ patented and proprietary technologies, IFF’s XCELIS® Ethanol Solutions platform will deliver new yeasts with unparalleled yield, robustness and enzyme expression.

DSM newest yeast, eBoost® GTX, is currently undergoing US plant trials. It delivers low glycerol, high ethanol yield and up to 70% glucoamylase replacement.  IFF will launch eBoost® GTX along with other new yeast products during 2021 including SYNERXIA® RUBY and SYNERXIA® SAPPHIRE.

Atul Thakrar, President of DSM Bio-based Products & Services stated, “We are excited by the potential of this agreement with IFF. By adding our eBoost® product line to IFF’s platform, IFF will deliver even more value to ethanol producers thanks to an enhanced yeast technology and portfolio, complementary enzymes, advanced data tools, global supply and regulatory infrastructure and an extensive technical and commercial global field organization. This collaboration is the optimal way to deliver the benefits of our yeast technologies to the broadest group of ethanol producers globally.”

Cindy McCracken, Vice President Grain Processing Business, Health & Biosciences division, IFF stated, “We are ready to serve the needs of new and current customers of both IFF and DSM. As we approach this July’s International Fuel Ethanol Workshop & Expo, the team looks forward to supporting the industry with the broadest portfolio of yeast and enzyme products and the technology to drive superior operational and financial performance.”

High yield yeasts and other advancements in the ethanol industry have enabled US producers to increase ethanol yields by 6.5%, reduce energy inputs by 24% while delivering ever-greater quantities of low carbon biofuels and animal feed*. By increasing yields, speeding up fermentation, reducing energy and chemical consumption, IFF’s XCELIS® Ethanol Solutions platform is helping ethanol producers meet the challenges of today’s renewable energy market. 

Dr. Casper Vroemen, Vice President Global Research and Development, Health & Biosciences division, ?IFF stated, “Continued development of the best commercial embodiments of our yeast technology has been a key focus of our Grain Processing technology platform. We are delighted to add DSM’s technology to our platform to deliver improvements in fermentation yield with reduced byproduct formation.” 

* Retrospective analysis of the U.S. corn ethanol industry for 2005–2019: implications for greenhouse gas emission reductions https://onlinelibrary.wiley.com/doi/10.1002/bbb.2225?af=R

About DSM Bio-based Products & Services

DSM Bio-based Products & Services is part of Royal DSM, a global, purpose-led, science-based company active in Nutrition, Health and Sustainable Living. DSM’s purpose is to create brighter lives for all. DSM addresses with its products and solutions some of the world’s biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. DSM delivers innovative solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

About IFF Health & Biosciences 

Inspired by nature and distinguished by its world-class bioscience and microbiome capabilities, IFF’s Health & Bioscience (H&B) platform is a leading innovation partner for customers across a broad range of consumer product, industrial and agricultural sectors. H&B works closely with our customers to enhance products – and their processes – to deliver safer, healthier and more sustainable solutions.

About IFF

At IFF (NYSE: IFF), an industry leader in food, beverage, health, biosciences and sensorial experiences, science and creativity meet to create essential solutions for a better world – from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at  iff.com,  Twitter,  Facebook,  Instagram, and  LinkedIn.

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