In the News
Feb 16, 2021
Even after experiencing a sudden drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released today by the Renewable Fuels Association.
The economic analysis was prepared for the RFA by John M. Urbanchuk, Managing Partner of ABF Economics.
“Despite the disruptive effects of the COVID pandemic, economic and regulatory challenges in 2020, the ethanol industry continued to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of crude oil and petroleum products,” Urbanchuk writes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable.”
In 2020, more than 62,000 U.S. jobs were directly associated with the ethanol industry, which supported an additional 242,600 indirect and induced jobs across all sectors of the economy. The industry created $18.6 billion in household income and contributed $34.7 billion to the national gross domestic product. This was 19 percent below 2019’s GDP contribution, primarily as the result of lower output and lower prices.
“Even though the pandemic created enormous headwinds for our industry in 2020, the resilience of the men and women who work in the U.S. renewable fuels sector shined through,” said RFA President and CEO Geoff Cooper. “The ethanol industry certainly was not spared from the devastation that beset the entire U.S. economy in 2020, but the nation’s 200-plus ethanol biorefineries continued to provide good-paying jobs in scores of rural communities. And those essential workers did more than produce renewable fuel and livestock feed in 2020—they also made virus-killing sanitizers and the dry ice used to ship millions of doses of life-saving vaccines.”
Read the original press release here.
Feb 12, 2021
A new analysis from a renowned carbon accounting firm finds that the greenhouse gas emission reductions achieved under the Renewable Fuel Standard far exceed the reductions originally projected by EPA. Between 2008 and 2020, the use of biofuels under the RFS has resulted in cumulative savings of 980 million metric tons of carbon dioxide-equivalent greenhouse gas emissions.
The research, which updates the results from a previously published study, was conducted for the Renewable Fuels Association by Stefan Unnasch and Debasish Parida of Life Cycle Associates.
The greater-than-expected GHG savings are attributable to several factors: corn ethanol provided larger GHG reductions than anticipated by EPA; the actual carbon intensity of gasoline and diesel was worse than estimated by EPA; and use of biodiesel and renewable diesel exceeded EPA’s original expectations.
“The Renewable Fuel Standard has been the single most effective and efficient policy we’ve ever had for decarbonizing our nation’s transportation fuels,” said RFA President and CEO Geoff Cooper. “This research clearly demonstrates that the RFS has already put us firmly on the path toward net-zero GHG emissions by mid-century, and the program will continue to serve as the bedrock for future efforts to combat climate change. The RFS has overachieved its original expectations, and renewable fuel producers and farmers across the country should be extremely proud of their important role in securing 1 billion metric tons of carbon reduction.”
According to the report, the carbon intensity of corn-based ethanol used toward the RFS is now 45% below the carbon intensity of gasoline, having dropped 20% between 2008 and 2020. The authors attribute ethanol’s shrinking carbon footprint primarily to improvements in the corn ethanol production process, growth in the use of low-carbon biogas as the process fuel, and the elimination of coal as a thermal energy source for dry mill ethanol plants.
Cooper noted that the Life Cycle Associates study is consistent with recently released research from Environmental Health & Engineering Inc., which showed that GHG emissions for ethanol are 32% to 62% lower than gasoline, with a central best estimate of 46%. In addition, the assessment showed that carbon emissions from converting prior land uses to corn farming make up only 7% of the biofuel’s total GHG emissions—a much smaller amount than generally recognized.
Read the original story here.
Feb 10, 2021
[ST. PAUL, MN]— As Chair of the Governors' Biofuels Coalition, Governor Tim Walz today urged President Joe Biden to support the biofuels industry, combat climate change, and invest in rural economies by reversing the previous Administration's actions that supported oil refineries at the expense of the ethanol industry, a cornerstone of many Midwestern economies.
"Over the years, we have seen firsthand how the ethanol industry has transformed and revived rural communities and contributed to the fight against climate change," said Governor Walz. "Today, those communities, along with the ethanol industry, are endangered. These proposed executive actions would provide much needed stability in rural America and provide countless benefits to all Americans."
"Action by the federal government on aromatics and the Renewable Fuel Standard would complement and leverage our efforts in Minnesota to replace petroleum transportation fuels and reduce carbon emissions through biofuels,"said Minnesota Department of Agriculture Commissioner Thom Petersen.
Governor Walz urged President Biden to issue an Executive Order enforcing the Clean Air Act by replacing the use of aromatics in gasoline with cleaner alternatives. Reducing aromatics would lessen the risk of respiratory diseases and eliminate gasoline's most carbon intensive component. He also encouraged the Biden Administration to adopt new Renewable Fuel Standard regulations that would prevent billion-dollar companies from edging out the biofuels industry.
Governor Walz also encouraged President Biden to support the effort led by Senator Klobuchar and Senator Ernst to create a renewable fuel infrastructure grant program and to streamline underground storage tank regulations. Their plan would smooth the path to higher biofuel blends and amplify the impact of the executive actions outlined in the Governor's letter.
Full text of the letter is below.
Dear President Biden:
Please accept my congratulations on your election as the 46th President of the United States. I write to you today as the Governor of Minnesota and as the chair of the Governors' Biofuels Coalition. For over two decades, this bipartisan coalition has worked together to advance biofuels, agriculture, and environmental policy with a unified message from the nation's governors. We look forward to working with you and Vice President Harris on a range of issues important to all Americans.
It is clear that we collectively face unprecedented and complex challenges that will require considerable ingenuity and determination to solve. One of those challenges is climate change. I know you are committed to reengaging the federal government in policies and programs to make progress in this area and that you are dedicated to partnering with states in that effort. I look forward to such a partnership.
As you begin your critical work to address climate change and promote economic opportunity, I encourage you to work with states on making biofuels a key component of addressing transportation sector emissions. Biofuels are especially important in the near term as we begin the necessary transition into a carbon-neutral transportation sector. And they provide significant opportunity for economic growth and investment across rural America.
Two key administrative actions will help ensure the future of the states' biofuels community, which is now threatened by trade wars, a litigious petroleum industry, and shrinking demand caused by the pandemic. Swift support for this endangered industry is crucial, which is why I urge you to take the following actions to support biofuels in the years ahead.
Issue an Executive Order Banning the Use of Aromatics in Gasoline
To benefit public health, the environment, and the biofuels industry, I urge you to consider executive action directing the enforcement of the Clean Air Act's aromatics provision. That provision, which has been largely unenforced for decades, requires the reduction of toxic gasoline aromatics, replaced with cleaner octane additives.
Reducing aromatics would lessen the fine particulate emissions associated with respiratory diseases. Enforcement of the aromatics provision would also create well-paying jobs and eliminate gasoline's most carbon intensive component. This order would expand the market for ethanol by a projected twofold increase, a key to our collective efforts to revitalize jobs and encourage economic growth in rural America.
Adopt New Renewable Fuel Standard Regulations
The Renewable Fuel Standard (RFS) is one of Congress's most significant energy policy accomplishments. However, the RFS's waiver provision has been used by billion-dollar companies to obtain inappropriate blending waivers that have severely damaged the nation's biofuels industry. The most harmful abuse—the manipulation of the RFS's small refinery exemption—is but one of several ways the regulations have been distorted to keep the RFS from meeting its full potential. I would welcome an opportunity to work with you and your Administration on RFS regulations to ensure that they create the positive impact that was intended.
Over the years, I have seen firsthand how the ethanol industry has transformed and revived rural communities and contributed to the fight against climate change. Today, those communities, along with the ethanol industry, are endangered. These proposed executive actions would provide much needed stability in rural America and provide countless benefits to all Americans.
As you consider these actions, I also encourage you to support the effort led by Senator Klobuchar and Senator Ernst to create a renewable fuel infrastructure grant program and to streamline underground storage tank regulations. Their plan would smooth the path to higher biofuel blends and amplify the impact of the executive actions outlined in this letter.
Thank you for your consideration of these important actions. If members of your staff need additional information, please do not hesitate to reach out to Larry Pearce, the Governors' Biofuels Coalition's executive director (402-651-2948, This email address is being protected from spambots. You need JavaScript enabled to view it.).
Sincerely,
Tim Walz, Chair
and Governor of Minnesota
Read the original press release here.
Feb 10, 2021
The U.S. Energy Information Administration lowered its forecast for 2022 fuel ethanol production in its latest Short-Term Energy Outlook, released Feb. 9. The forecast for 2021 ethanol production, however, was maintained.
The EIA currently predicts ethanol production will average 980,000 barrels per day this year, up from 900,000 barrels per day in 2020. In 2022, the agency currently predicts ethanol production will increase to 1.01 million barrels per day, down slightly from the 1.02-million-barrel-per-day prediction made in the January STEO.
On a quarterly basis, ethanol production is expected to average 940,000 barrels per day during the first quarter of 2021, increasing to 960,000 barrels per day in the second quarter, 1 million barrels per day in the third quarte rand 1.01 million barrels per day in the fourth quarter. Production is expected to fall to 1 million barrels per day during the first quarter of 2022, before increasing to 1.01 million barrels per day in the first quarter, 1.02 million barrels per day in the third quarter and 1.03 million barrels per day in the fourth quarter.
Ethanol consumption is expected to average 880,000 barrels per day in 2021, up from 820,000 barrels per day in 2020. In 2022, consumption is expected to increase to 910,000 barrels per day.
A full copy of the EIA’s February STEO can be downloaded from the agency’s website.
Read the original story here.
Feb 9, 2021
By Tom Daschle
Growing up in South Dakota, agriculture has always been in my blood.
For nearly three decades, I had the honor of representing South Dakota — where agriculture is the leading industry, with a $21 billion annual impact on the economy — in Congress. During nearly 20 years in the Senate, I worked across the aisle with Republican colleagues, many with dramatically different viewpoints on policy, to pass a wide range of agriculture-related legislation. Highlights included working with Bob Dole to pass the “clean octane” amendment to the 1990 Clean Air Act, and 10 years later, teaming up with Richard Lugar to introduce what would become the first renewable fuel standard.
It became clear to me early on that a robust domestic biofuels industry, including ethanol, would not only be good for farmers and our rural economy but also for the environment, public health and the nation’s energy security. Unfortunately, confusion and misinformation — about ethanol’s effects on food prices and vehicle performance — have hindered the realization of these benefits.
Called “the world’s most important food crop” in one Washington Post article, corn has a unique ability to help with climate change, absorbing one-third more carbon from the atmosphere than most other plants. Only 3 percent of plants have this characteristic, but they account for 23 percent of all terrestrial carbon fixation.
Experts at USDA and Argonne National Laboratory have concluded that corn ethanol produced with precision agriculture and other conservation practices can reduce greenhouse gas emissions by 50 percent to 76 percent compared to gasoline. Other experts predict that over the next several years, high-octane, low-carbon, or HOLC, fuels, such as ethanol, will be classified as ultra-low carbon fuels, surpassing the greenhouse gas benefits of vehicles running on electricity produced from coal and natural gas.
I’m encouraged to see the Biden administration already addressing the nation’s many crises. On his first day, President Biden launched a blitz of executive actions targeted at four priorities: the COVID-19 pandemic, the economy, racial justice and climate change. Smart agriculture policy that supports clean-burning, high-octane, low-carbon renewable fuel can help advance the president’s agenda on all fronts.
Fortunately, the administration doesn’t need Congress to act in order to set a national high-octane gasoline standard using ethanol’s “clean octane.” The statutory authority has been in place since the 1990 Clean Air Act, reaffirmed by Congress in the 2005 law that established the first renewable fuel standard.
The transportation sector, almost completely dependent on gasoline and diesel, is the nation’s largest source of greenhouse gas emissions. Adding electric vehicles into the fleet will help over time, but improving the quality of the gasoline we use now — more than 100 billion gallons annually — would reap immediate benefits. Higher octane fuels would allow automakers to dramatically increase fuel economy and reduce carbon emissions, benefiting both the environment and public health.
The best way to increase gasoline octane is with HOLC fuels (mid-level ethanol blends such as E30) that replace the toxic compounds now used by refiners, which emit high levels of ultrafine particle pollution, especially in new direct-injection engines. A recent Harvard study associated air pollution with higher COVID-19 mortality rates, providing even more reason to switch to HOLC fuels.
I know that South Dakota and other corn-producing states in the Midwest can play a critical role in getting us there. Now is the time for the Biden administration to make it so with a new fuel economy and greenhouse emissions rule that includes a national “clean octane” standard. The anticipated review and tightening of the Safer Affordable Fuel-Efficient Vehicles rule is an opportunity to demonstrate our renewed commitment to science and put us on a path toward reaching net-zero emissions by 2050.
Taking this critical step would improve the health of our environment, our lungs, and our economy — all at the same time.
Read the original story here.
Feb 8, 2021
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.
The Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over 5 years for infrastructure grants for fuel retailers and direct the Administrator of the Environmental Protection Agency (EPA) to finalize a proposed rule to repeal E15 labeling requirements warning drivers about E15’s potential impact on cars, which may confuse and deter drivers from using E15, a blend of gasoline with 15 percent ethanol. The bill would also direct the EPA Administrator to finalize provisions from the same proposed rule to allow certain existing Underground Storage Tanks (UST) to store higher blends of ethanol.
"Diversifying our fuel supply and introducing higher blends of biofuels in the market are great steps forward as we work to promote clean energy technologies and invest in transportation infrastructure,” said Senator Klobuchar. “This legislation will make cleaner fuels more accessible – ultimately benefiting both the economy and the environment.”
“I’ve long been pushing to expand infrastructure for high blends of biofuel, like E15, which is critical for Iowa’s economy. This bipartisan effort will help advance the deployment of renewable fuel infrastructure and provide consumers across Iowa and the country with greater access to cleaner, more affordable choices at the pump,” said Senator Ernst.
In 2015 and 2020, the United States Department of Agriculture (USDA) authorized and implemented one-time infrastructure grant programs to increase the availability of renewable fuels, known as the Biofuel Infrastructure Program (BIP) and the Higher Blends Infrastructure Incentive Program (HBIIP), respectively. Current EPA regulations require all gas pumps that dispense E15 to display a warning label noting that it may be unsafe for use in certain vehicles, though 95 percent of all vehicles are approved for E15 and over 18 billion miles have already been driven on the fuel. Current UST regulations require retailers who cannot find installation documentation for their tanks or piping to prove that the equipment is safe for higher blends of ethanol. Because this often cannot be done without breaking concrete to check the UST, some compatible retailers choose to not offer E15. This legislation would allow retailers who cannot find installation documentation for their UST to store higher blends of ethanol if they use certain advanced spill monitoring or if the tank is double walled.
Read the original press release here.
Feb 5, 2021
The U.S. exported more that 1.33 billion gallons of fuel ethanol last year, down from 1.46 billion gallons in 2019, according to data released by the USDA Foreign Agricultural Service on Feb. 5. Despite the pandemic, that level of exports is the fourth highest volume on record. Distillers grains exports reached 10.96 million tons, up from 10.81 million tons in 2019.
Ethanol exports for December were at 111.33 million gallons, down slightly from the 113.61 million gallons exported in November, and down from the 147.08 million gallons exported in December 2019.
Canada was the top destination for U.S. ethanol exports in December at 22.91 million gallons, followed by South Korea at 12.94 million gallons, and China at 12.52 million gallons.
The value of U.S. ethanol exports was at $188.73 million in December, down from both $193.22 million gallons in November and $246.46 million gallons in December 2019.
Total U.S. ethanol exports for the full year 2020 reached 1.33 billion gallons at a value of $2.33 billion, compared to 1.46 billion gallons at a value of $2.35 billion in 2019.
Canada was the top destination for U.S. ethanol exports last year at 326.43 million gallons, followed by Brazil at 199.82 million gallons and India at 189.63 million gallons. In 2019, Brazil was the top destination for U.S. ethanol at 332.33 million gallons, followed by Canada at 330.67 million gallons and India at 173.8 million gallons.
Distillers grains exports for December were at 842,738 tons, down from 927,604 tons in November, but up from 765,960 tons in December 2019.
The value of U.S. distillers grains exports for December reached $196.22 million, down from $203.23 million in November, but up from $154.66 million in December 2019.
Total U.S. distillers grains exports reached 10.96 million tons at a value of $2.33 billion in 2020, compared to 10.81 million tons at a value of $2.23 billion in 2019.
Mexico was the top destination for U.S. distillers grains exports in 2020 at 1.74 million tons, followed by Vietnam at 1.29 million tons and South Korea at 1.27 million tons. Mexico was also the top destination for U.S. distillers grains in 2019 at 2.03 million tons, followed by South Korea at 1.25 million tons and Vietnam at 1.2 million tons.
The Renewable Fuels Association pointed out that nearly one out of every 10 gallons of ethanol produced last year was exported. “COVID-19 and protectionist trade barriers created enormous headwinds for ethanol in the international market in 2020,” said Geoff Cooper, president and CEO of the RFA. “But the U.S. ethanol industry again rose to the challenge and supplied more than 1.3 billion gallons of clean, green renewable fuel to customers across the globe. American ethanol continues to play a crucial role in helping nations around the world reduce consumer fuel costs, cut harmful tailpipe pollution, and meet decarbonization commitments under the Paris climate agreement. We are especially encouraged to see that China finally re-entered the market in December, importing nearly 13 million gallons of U.S. ethanol. We enter 2021 on solid footing and the industry is optimistic about the prospects for meaningful growth in ethanol exports.”
Growth Energy expressed optimism in global ethanol demand. “In a year where gasoline demand has taken an unprecedented dive due to the COVID-19 pandemic, we’re optimistic to see worldwide ethanol demand continue to provide U.S. producers with market opportunities,” said Emily Skor, CEO of Growth Energy.
“One of our main objectives at Growth Energy is building strategic global partnerships with countries around the world in order to grow demand here at home and to underscore to international leaders the economic and environmental benefits of ethanol. As we look ahead, a global movement is afoot to achieve aggressive clean energy goals, and the 2020 ethanol export number reflects that the world is seeing biofuels as a part of the solution as an affordable, low-carbon, high-octane fuel.”
Additional data is available on the USDA FAS website.
Read the original story here.
Feb 4, 2021
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) led a letter to Acting Administrator of the Environmental Protection Agency (EPA) Jane Nishida highlighting the need to restore integrity to the Renewable Fuel Standard (RFS) by reviewing small refinery waivers, swiftly issuing a proposed rule for the 2021 Renewable Volume Obligation, and advancing the proposed E15 streamlining proposal.
Hours before the inauguration, former EPA Administrator Andrew Wheeler took action to exempt three unidentified oil refineries from their 2018 and 2019 RFS obligations under the Clean Air Act. These exemptions betrayed earlier assertions made by the Trump administration that the EPA would not grant or deny additional waivers pending the resolution of ongoing litigation over the use of the small refinery waiver authority. In January 2021, the U.S. Court of Appeals for the Tenth Circuit found that EPA had “grossly exceeded” its authority by granting certain small refinery exemptions. As this litigation continues, the Senators asked Acting Administrator Nishida to review the three waivers issued by Mr. Wheeler and, should they be deemed unacceptable, immediately reverse them.
“Fortunately, on January 21, 2021, the U.S. Court of Appeals for the D.C. Circuit...ordered an administrative stay of the three exemptions pending further order by the court. The order granting a stay...provides you a timely opportunity to carefully review the three midnight waivers and examine the previous administration’s flawed approach to adjudicating waiver petitions. We urge you to take advantage of this opportunity,”the Senators wrote.
The Senators also proposed additional actions Administrator Nishida could take to provide certainty and stability to the renewable fuels marketplace, including swiftly issuing a proposed rule for the 2021 Renewable Volume Obligations (RVO) and moving forward with the proposed E15 streamlining proposal to expand market access for higher-blends of biofuels.
Klobuchar and Grassley were joined by Senators Tina Smith (D-MN), Joni Ernst (R-IA), Tammy Baldwin (D-WI), Roy Blunt (R-MO), Richard Durbin (D-IL), Ben Sasse (R-NE), Tammy Duckworth (D-IL), John Thune (R-ND), Debbie Stabenow (D-MI), Roger Marshall (R-KS), M. Michael Rounds (R-SD), Deb Fischer (R-NE), and Josh Hawley (R-MO).
Full text of the letter HERE and below:
Dear Acting Administrator Nishida:
As Senators who represent states with large agriculture interests, we write to highlight the pressing concern of restoring integrity to the Renewable Fuel Standard (RFS) and to alert you to pressing policy decisions that the Administration must make to bring regulatory certainty to the transportation fuels sector of the economy.
Your predecessor, former Administrator Andrew Wheeler, took action to exempt three unidentified oil refineries from their 2018 and 2019 Renewable Fuel Standard (RFS) obligations under the Clean Air Act just hours before the inauguration. These exemptions betrayed earlier assertions made by the Trump Administration that the Environmental Protection Agency (EPA) would not grant or deny additional waivers pending the resolution of ongoing litigation over the use of the small refinery waiver authority. In January 2020, the U.S. Court of Appeals for the Tenth Circuit found that EPA had “grossly exceeded” its authority by granting certain small refinery exemptions. On January 8, 2021, the Supreme Court indicated its intention to review the Tenth Circuit case (Renewable Fuels Association v. EPA), with oral arguments expected this spring and a decision by summer.
As this litigation is ongoing, we respectfully ask that you review the three waivers issued by Mr. Wheeler on January 19, 2021. If these waivers do not meet the three-part test laid out in the Tenth Circuit Court of Appeals then we urge you to immediately reverse them and deny the refiners’ waiver requests.
Fortunately, on January 21, 2021, the U.S. Court of Appeals for the D.C. Circuit, acting in response to an emergency motion, ordered an administrative stay of the three exemptions pending further order by the court. The order granting a stay – which does not require a response from EPA until February 3, 2021 – provides you a timely opportunity to carefully review the three midnight waivers and examine the previous administration’s flawed approach to adjudicating waiver petitions. We urge you to take advantage of this opportunity.
Because the Tenth Circuit decision is the most definitive legal pronouncement to date regarding EPA’s small refinery waiver authority, we encourage the Agency to adhere to that decision for the purposes of deciding all pending exemption petitions during the pendency of the Supreme Court’s review of the decision.
EPA could provide additional certainty and stability to the renewable fuels marketplace by swiftly issuing a proposed rule for the 2021 Renewable Volume Obligation (RVO) that provides growth in all renewable fuel categories and finally restores the 500 million gallons of blending requirements that were illegally removed from the 2016 RVO. Finally, in order to continue growing the market for cleaner, lower-cost biofuels, we respectfully ask that EPA move forward with the E15 streamlining proposal that was published just days before the end of the previous administration.
Not only would the actions requested in this letter restore integrity to the RFS and revive confidence throughout our nation’s farm communities, but they would also help fulfill commitments made by President Biden to expand the use of environmentally friendly renewable energy sources.
Read the original press release here.
More...
Feb 1, 2020
Intellectual Property (INDECOPI) Tribunal announced Friday that the U.S. ethanol industry and the U.S. government won an appeal on a countervailing duty case brought against U.S. ethanol in Peru, reversing a previous decision handed down by Peruvian authorities that applied a 15-cent per gallon duty on U.S. ethanol and resulted in loss of market access in the country.
The Renewable Fuels Association, U.S. Grains Council and Growth Energy participated extensively in this case, arguing at hearings in both the initial investigation and the appeal in Peru on behalf of the U.S. ethanol industry. The following is a joint statement on the decision from Geoff Cooper, President and CEO, RFA; Ryan LeGrand, President and CEO, U.S. Grains Council; and Emily Skor, CEO, Growth Energy.
“We appreciate the thoroughness of the Competition Tribunal’s analysis, and the careful review process followed in Peru. This is a welcome development for our U.S. ethanol producers and our valued customers in Peru.
“We are pleased that Peruvian authorities reached the right result, and we look forward to continuing our close work with Peru to further enhance our mutually beneficial trade relationship development efforts, including urging them to increase their blend rate beyond 7.8 percent. Doing so would also help Peru to meet its Paris Agreement commitments and lead to opening more global trade of ethanol.
“The U.S. ethanol industry remains focused on expanding the global use of low-carbon ethanol, reducing barriers to trade, and elevating the energy discussion, and we favor continued collaboration and cooperation with Peru and other nations that share the vision of a free and open global ethanol market.”
Read the original news release here.
DuPont Launches SYNERXIA® Gemstone Collection of New High-Performance Yeasts for U.S. Ethanol Market
DuPont Nutrition & Biosciences
Jan 26, 2021
DuPont Nutrition & Biosciences today announced the launch of the SYNERXIA® Gemstone Collection, the next advancement in high-performance yeasts. The new collection from the XCELIS® platform includes SYNERXIA® SAPPHIRE and SYNERXIA® RUBY – two innovative, high-yield yeasts designed for the unique needs of ethanol producers.
This marks the first time that DuPont has co-launched two high-yield yeasts. SYNERXIA® SAPPHIRE brings the most powerful combination of yield, robustness and enzyme expression in a yeast. It offers enhanced ethanol yield increase paired with revolutionary thermotolerance and infection robustness in fermentation and has been genetically engineered to withstand harsh stressors, while still finishing fermentation with ultra-low DP1.
SYNERXIA® SAPPHIRE has been engineered to provide a strong ethanol yield increase compared to conventional yeast and powers through fermentation finishing clean when ethanol producers encounter hot fermentations or severe infections. The product also expresses enough glucoamylase to displace up to 80 percent of the glucoamylase injected to fermentation. The yeast’s strong expression of the powerful glucoamylase offers reduced residual starch for many producers.
SYNERXIA® RUBY is the highest yielding yeast available today from the XCELIS® platform, delivering exceptional performance to producers via a patented PKL pathway and additional targeted genetic modifications. It produces less acetic acid compared to SYNERXIA® THRIVE GX and enables up to 65 percent glucoamylase reduction.
“The SYNERXIA® Gemstone Collection will give ethanol producers flexibility in responding to their individual plant needs while ensuring high ethanol yield and minimal waste,” said Hans Foerster, global marketing director, DuPont Biorefineries. “These new yeasts represent a new standard in high-yield yeasts on the market for ethanol producers and is just the latest in DuPont’s innovative approach to ethanol solutions through the XCELIS® platform.”
To learn more about the SYNERXIA® Gemstone Collection and the XCELIS® platform, visit www.xcelis.com or https://www.linkedin.com/showcase/xcelis-ethanol-solutions.
Read the original news release here.
Jan 26, 2021
A comprehensive new study by scientists from Harvard University, Tufts University and Environmental Health & Engineering Inc. shows that using corn ethanol in place of gasoline reduces greenhouse gas emissions by almost half. The “central best estimate” of corn ethanol’s carbon intensity is 46% lower than the average carbon intensity of gasoline, according to the study’s authors, with some corn ethanol in the market today achieving a 61% reduction. The study credits recent efficiency improvements and the adoption of new technologies for the steady reduction in the lifecycle carbon intensity of corn ethanol. The new study will be published in an upcoming volume of Environmental Research Letters, a well-respected academic journal.
“This new study provides further validation that ethanol is a highly effective tool that for decarbonizing liquid transportation fuels and significantly reducing greenhouse gas emissions from the transportation sector,” said Renewable Fuels Association President & CEO Geoff Cooper. “And with ethanol, we don’t have to wait and hope for technological and economic breakthroughs. It’s here today at a low cost and already has a proven track record. Ethanol can and should be allowed to do more to contribute to the fight against climate change, and that starts by breaking down the barriers to higher blends like E15, E30, and flex fuels like E85. As President Biden’s administration and the new Congress consider actions and policies to address climate change, we encourage them to examine the best available science and properly account for the critical role ethanol and other renewable fuels can play in securing immediate GHG reductions.”
Cooper pointed out that the scientists found that emissions from land-use change are only “a minor contributor” to the overall carbon footprint of corn ethanol, accounting for just 7% of total GHG emissions.
According to EH&E’s Chief Science Officer David MacIntosh, one of the study’s authors, “This research provides an up-to-date accounting of corn starch ethanol’s GHG profile in comparison to that of gasoline refined from crude oil. The results of this research are timely for the scientific, public health, legislative, and business communities seeking to establish a net-zero carbon economy while addressing related technological, political and economic challenges.”
Read the original news release here.
Jan 22, 2021
U.S. ethanol production was up less than 1 percent the week ending Jan. 15 while weekly ending stocks were down slightly, according to data released by the U.S. Energy Information Administration on Jan. 22.
U.S. ethanol production averaged 945,000 barrels per day the week ending Jan. 15, up 4,000 barrels per day when compared to the 941,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 104,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol fell to 23.628 million barrels the week ending Jan. 22, down 64,000 barrels when compared to the 23.692 million barrels of stocks reported for the previous week.
Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been trending higher in recent months. When compared to the same week of last year, ethanol stocks for the week ending Jan. 15 were up 403,000 barrels.
Read the original story here.
Jan 21, 2021
In response to an emergency motion filed Tuesday evening by the Renewable Fuels Association, the U.S. Court of Appeals for the D.C. Circuit today ordered that EPA’s action on Tuesday to grant three small refinery petitions must be “administratively stayed pending further order of the court.”
The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10.
The stay comes roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would erase another 260 million gallons of Renewable Fuel Standard blending requirements.
“We took this action immediately to prevent the agency from doing further economic damage to an industry already reeling from the impacts of COVID-19,” said RFA President and CEO Geoff Cooper on Tuesday when the motion was filed. “To avert additional harm to the ethanol industry, EPA must be prevented from returning any compliance credits (RINs) to the unidentified refiners who were given these last-minute exemption handouts.”
Read the original press release here.
Jan 18, 2021
The ethanol sector continued to recover during the fourth quarter of 2020 with production levels up 3.5 percent when compared to the third quarter, according to a new quarterly report released by CoBank’s Knowledge Exchange on Jan. 14. Margins, however, were down.
Average daily production was at 14.7 billion gallons or 90 percent of pre-COVID supply and demand during the fourth quarter, up from 14.2 billion gallons in the third quarter or approximately 87 percent of pre-COVID supply and demand during the third quarter.
According to CoBank, average daily operating margins for a representative Iowa dry mill fuel ethanol plant fell by 10 cents during the quarter to 11 cents per gallons. The report notes that input costs increased dramatically during the three-month period, with corn prices up 26 percent and natural gas prices up 19 percent.
CoBank said it is closely monitoring industry operating margins given the risk that ethanol fuel prices could stagnate relative to increasing corn prices. The report indicates, however, that facilities producing distillers grains coproducts may continue to see margin expansion should distillers grains values remain elevated relative to corn.
In the near-term, CoBank said the incoming Biden administration’s urgency in addressing climate change through its recommitment to the Clean Air Act will be a positive for the ethanol industry. Longer term, however, electric vehicles threaten to erode ethanol demand.
CoBank also predicted the production outlook for fuel ethanol could somewhat improve in 2021 if COVID-19 vaccine deployment fosters a return to workplaces.
For the U.S. economy as a whole, CoBank predicts it will be summer before the economy really begins to gain steam. The second half of the year, however, is expected to power the economy to annual growth of approximately 4.5 percent to 5.5 percent.
A full copy of the quarterly report can be downloaded from the CoBank website.
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Jan 14, 2021
The U.S. Environmental Protection Agency said on Thursday it would propose to extend deadlines for refiners to prove compliance with biofuel laws, but signaled it would not decide on a slew of pending waiver requests submitted by the industry.
The agency's proposal represented mixed news for refiners hard hit by slumping energy demand during the coronavirus pandemic and eager to sidestep regulatory costs associated with U.S. biofuel blending policy. It also marks one of the last actions from President Donald Trump's EPA before he leaves office on Jan. 20.
The agency said it is proposing to extend the compliance deadline for 2019 biofuel blending obligations to Nov. 30, 2021, and an associated deadline for submission of attest engagement reports to June 1, 2022. The EPA is also proposing to extend the 2020 deadlines to Jan. 31, 2022, and June 1, 2022.
Refiners must hand in credits to the EPA each year to prove they complied with their annual biofuel blending obligations for the previous year.
The agency also said it was not taking a position on the availability of 2019 small refinery waivers, which can exempt oil refiners from biofuel blending obligations. The agency said the decision was related to pending litigation regarding the waiver program.
EPA could not be reached by Reuters to clarify whether that meant the agency was not issuing any additional waivers before Trump leaves office.
The proposal was outlined in a document seen by Reuters that is scheduled to be posted on the Federal Register on Friday.
Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels like corn-based ethanol into their fuel mix, or buy credits from those that do. Refiners can apply for exemptions if they can prove the obligations would cause them financial harm.
Because of the coronavirus pandemic, EPA had not enforced compliance for some refineries for the 2019 compliance year.
"While we don’t agree that EPA needs to wait as long as it is proposing, particularly for the 2020 compliance year, we do agree with EPA that the outgoing administration should refrain from any further action on the pending small refinery petitions," said Geoff Cooper, president of the Renewable Fuels Association.
U.S. senators including Joni Ernst and Chuck Grassley of Iowa urged EPA Administrator Andrew Wheeler in a letter dated Thursday not to grant small refinery exemptions until ongoing litigation is resolved.
Renewable fuel (D6) credits for 2020 traded at 90 cents each on Thursday, up from 79 cents in the previous session, traders said.
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Jan 13, 2021
U.S. ethanol production was up nearly 1 percent the week ending Jan. 8, according to data released by the U.S. Energy Information Administration on Jan. 13. Weekly ending stocks of fuel ethanol increased by nearly 2 percent.
U.S. ethanol production averaged 941,000 barrels per day the week ending Jan. 8, up 6,000 barrels per day when compared to the 935,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 154,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol increased to 23.692 million barrels the week ending Jan. 8, up 408,000 barrels when compared to the 23.692 million barrels of stocks reported for the previous week.
Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been trending higher in recent months. When compared to the same week of last year, ethanol stocks for the week ending Jan. 8 were up 686,000 barrels.
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