In the News
August 4, 2017
By Ryan Faircloth
Minnesota's biodiesel blend standard will increase from 10 percent to 20 percent next May.
State commissioners announced the change during Minnesota Farmfest in Redwood Falls on Thursday. Supporters say the new standard will help increase the value of farmers' products, create new jobs and improve air quality.
Gov. Mark Dayton originally planned to make the announcement, but canceled his Farmfest trip due to illness.
In 2005, Minnesota was the first state in the country to mandate a 2 percent biodiesel blend (B2) in diesel fuel.
Thursday's announcement makes Minnesota the first in the nation to mandate a B20 standard, Minnesota Agriculture Commissioner Dave Frederickson said.
Homegrown soybeans make up a large portion of the state's biodiesel. Minnesota's biodiesel industry contributes more than $1.7 billion each year to the economy.
The state biodiesel industry adds roughly 63 cents to the market rate of farmer soybean bushels. Frederickson said he hopes the new standard will double that.
"We're excited about the opportunity to give farmers an opportunity to see more income in their pocket, which they definitely need today," he said.
Michael Petefish, Minnesota Soybean Growers Association president, said the increased standard will also bring more jobs to the industry.
"It's estimated 5,400 jobs are involved in the production and use of biodiesel," Petefish said.
According to the American Lung Association in Minnesota, biodiesel use considerably decreases tailpipe emissions. The implementation of B20 next year is expected to cut 1 million tons of carbon dioxide and 130 tons of particulate emissions.
"It's a good move for our health and for our environment as well," said Minnesota Pollution Control Agency Commissioner John Linc Stine.
B20 will be sold at filling stations in Minnesota next summer, before dropping back down to B5 — a 5 percent biodiesel blend — in October for cold-weather reliability.
B20 will be available from April through September each year starting in 2019.
Read the original story: Minnesota Biodiesel Standard Will Double Next Year
August 4, 2017
By Ann Lewis
U.S. ethanol exports totaled 92.7 million gallons (mg) in June, down 22% from May shipments, according to government data released this morning and analyzed by the Renewable fuels Association (RFA). Canada and Brazil were again the top destinations for U.S. exports, combining to receive nearly half of total exports in June, although volumes to both destinations fell sharply from May. Canada took in 24.8 mg in June (down 21% from May), while Brazil imported 20.9 mg (down 68%). Meanwhile, India jumped back into the market for the first time since March, importing 13.6 mg. U.S. ethanol exports to all destinations for the first half of the year stood at 686.8 mg, indicating a record annualized export total of 1.37 billion gallons.
Exports to Brazil hit their lowest point in nine months, equivalent to just 40% of the year-to-date average of 51.0 mg. Still, shipments to Brazil for the first half of the year (276.1 mg) are roughly on par with volumes shipped in the entirety of 2016 (279.1 mg).
Exports of undenatured fuel ethanol hit 44.2 mg in June, down 46% from May. At 17.7 mg, Brazil was the top customer for undenatured fuel product (40% of the total). Jamaica (6.8 mg) and Singapore (4.5 mg) increased their undenatured imports, while India (3.8 mg) and South Korea (3.8 mg) rounded out the top five markets. After averaging 6.2 mg of imports per month over the past 12 months, the Philippines scaled down volumes to just 0.5 mg in June.
Canada was again the top destination for denatured fuel ethanol, taking in 23.9 mg, or 58% of the total. India (9.8 mg), Brazil (3.2 mg), and South Korea (2.1 mg) accounted for the bulk of remaining exports.
Exports of denatured and undenatured ethanol for non-fuel, non-beverage purposes totaled 7.5 mg, with Nigeria (4.1 mg), South Korea (1.9 mg), and Canada (0.9 mg) accounting for the lion’s share (92%).
For the second month this year, the United States recorded fuel ethanol imports. The U.S. brought in 10.6 mg of fuel ethanol in June from Brazil, an 11% increase from May. Imports for the first half of 2017 totaled 20.2 mg–63% (7.8 mg) higher than the same period last year and indicating an annualized total of 40.4 mg.
Turning to distillers dried grains with solubles (DDGS)–the animal feed co-product manufactured by ethanol dry mills–exports increased 20% to 889,114 metric tons (mt) in June. Mexico continued to hold the top spot at 175,433 mt, increasing 30% from the prior month, while South Korea more than doubled its imports of U.S. product to 123,179 mt. Turkey (99,644 mt), Canada (67,756 mt), and Thailand (55,941 mt) were other large markets. Export sales for the first half of 2017 are 5.54 million mt–4% above volumes at this point last year and indicating an annualized total of 11.08 million.
Read the original article: Canada Unseats Brazil as Top Ethanol Export Destination in June
August 8, 2017
By Hannah Yang
Al-Corn CEO Randall Doyal was among a list of speakers to testify during an Environmental Protection Agency hearing on the use of ethanol and other fuels in the country's gasoline supply.
The Aug. 1 hearing was to collect public input on proposed 2018 Renewable Volume Obligations under Renewable Fuel Standard targets — the minimum amount of renewable fuels blended into the gasoline supply.
While the EPA's proposed 15 billion gallon requirement for ethanol appeared to satisfy ethanol proponents, requirements for biodiesel and advanced cellulosic ethanol have met some opposition.
"I do want to thank EPA for maintaining the 15 billion number for conventional, corn-based ethanol," Doyal's testimony reads. "Don't allow all the negative noise to cloud your thinking like exhaust from autos used to cloud our skies and pollute our air. We have made great strides toward energy security, renewable and cleaner fuels, cleaner air and reduced carbon emissions."
Some conservative groups want to scale back or eliminate the Renewable Fuel Standard. But those in the biofuels industry and Midwestern agriculture interests insist the standards have to be kept, or even increased, citing consumer freedom, energy independence and job creation.
Congress adopted the Renewable Fuel Standard in 2005 and expanded it in 2007. The program requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel. It would create more than 36 billion gallons of blended fuel in 2022.
While the proposed volume obligations would maintain the required volume of conventional ethanol, the volume for advanced biofuels and cellulosic ethanol were reduced, Doyal said.
"With the existing industry on the brink of generating cellulosic ethanol from corn kernel fiber simultaneously with starch-based ethanol, we are going to see significant quantities of new production available," he said. "The EPA's proposed RVO has a chilling effect on those developments."
What's cellulosic ethanol?
Cellulosic ethanol is produced from the stringy fiber of the plant, rather than from its seeds or fruit. It's a biofuel produced from grasses, wood, algae and other plants and is considered to have strong potential as a renewable fuel.
Bob Dinneen, of the Renewable Fuels Association, testified that many ethanol plants are in the process of adding bolt-on fiber conversion technology to their facilities, which could dramatically increase cellulosic ethanol production next year.
"We understand the agency's dilemma in establishing an appropriate RVO for cellulosic ethanol, but we truly believe the agency has erred on the side of pessimism with regard to the potential for significant growth in cellulosic ethanol commercialization," Dinneen said during the hearing.
Al-Corn generates about 50 million gallons of ethanol annually and is in the midst of a significant expansion and modernization of its plant in Claremont. The expansion will improve efficiencies and expand its capacity to create more than 120 million gallons of ethanol per year.
"Our project is moving along well. We can't say enough about the dynamic combination of Karges-Faulconbridge engineering with McGough construction management," Doyal said. "They are pushing our project ahead, and we hope to be operating the expanded capacity by April next year, if not sooner."
Read the originals article: Al-Corn CEO Testifies at EPA Hearing
August 3, 2017
By John Stang
Gov. Jay Inslee’s administration wants Washington to become the nation’s leader in aviation biofuels.
One big aspect of that push would be to have Sea-Tac International Airport become the first American airport to provide significant amounts of biofuels to more than one airliner’s passenger jets. But he also wants to have the state grow the bio-stuff that is transformed into biofuels. And manufacture the biofuels that jet airliners can use.
Besides the environmental benefits of reducing greenhouse gas emissions, the Northwest has the potential for 1,900 biofuel-related jobs in Washington and Oregon, plus another 700 jobs in Montana, said Ralph Cavalieri, who is head of the Richland-based Center of Excellence for Alternative Jet Fuels & Environment.
The science is there. The technology is in the ballpark. The idea of trimming greenhouse gases from jet exhaust has a solid foothold on imaginations in the airline and military worlds. Last November, Alaska Airlines flew its first cross-country jetliner trip from Seattle to Washington, D.C., using wood-based biofuel.
But the big bugaboo is economics.
Who will pay for a potential $1 billion biofuel plant in Washington? How do you convince Northwest farmers that it would be smart to grow crops for biofuels instead of crops for food? How do you get biofuels cheap enough to legitimately compete economically with petroleum-based jet fuels?
“The problem is multi-faceted,” said Brian Bonlender, director of the Washington Department of Commerce at a recent aviation biofuels conference in Seattle.
A 2016 U.S. Department of Energy report concluded that it’s possible for biofuels — derived from plants or wood wastes such as leftover slash of downed trees — to eventually replace 30 percent of the United States’ 2005 petroleum consumption.
Over the next 33 years, the airline industry and the federal government are aiming to cut commercial aviation carbon emissions by roughly half. Currently, jet airliners produce about 2 percent of the Earth’s greenhouse gases, which could increase to 5 percent, said a July report on Sea-Tac’s biofuels potential from the Rocky Mountain Institute’s Carbon War Room and Swedish aviation biofuels supplier SkyNRG.
When biofuel is used, it is blended with regular jet fuel. The Commercial Aviation Alternative Fuels Initiative — a national coalition of airlines, biofuel producers and government agencies, hopes that within three years — it can produce 1.7 percent of the jet fuel used nationally.
So far, only two commercial airports — in Los Angeles and Oslo, Norway — have set up permanent jet biofuel blending operations. In Los Angeles, only United Airlines uses the biofuels, which is supplied by AltAir of Seattle.
AltAir had originally produced biofuel for aviation in Hoquiam but that production moved to what was an unused refinery near Los Angeles. Building a refinery from scratch anywhere close to Sea-Tac would be extremely expensive, perhaps $1 billion to $1.4 billion, according to experts. “We don’t have a mothballed refinery close to the Seattle airport,” said Carol Sim, environmental affairs director at Alaska Airlines.
And this is where all the economic hurdles show up.
In 2015, biofuels were two to three times as expensive as petroleum-based fuels, which is a huge practical factor against using biofuels for jets, said Charlotte Hardenbol, senior business development director for SkyNRG. That is actually a big improvement over just a half-dozen years, but she said, “The airline industry is a very thin-margin industry.”
“The price premium of (aviation biofuels) is expected to continue to decrease, driven by scaling effects and increased conversion efficiencies, eventually nearing price parity with conventional jet fuel,” said the SkyNRG-Carbon War Room report.
Another wrinkle is that biofuels do not have the federal government subsidies and tax breaks enjoyed by the oil industry, according to Peter Moulton, state Commerce’s bioenergy coordinator. “We’ve heavily subsidized the petroleum industry,” Moulton said in a late 2016 interview.
Ross Macfarlane, one of Seattle-based Climate Solutions’ leaders on this topic, contended Washington has another hurdle — the lack of an overall state government policy to boost the production of biofuels within the state. For example, he pointed to Washington not having low-carbon fuel standards, which would encourage research into low-carbon fuels such as biofuels. California, Oregon and British Columbia already have low-carbon fuel standards.
However, if enough byproducts markets are identified from the technology developed to process aviation biofuels, the extra revenue would make biofuel refineries more economical for investors, said Cavalieri, who is also Washington State University’s associate vice president for alternative energy.
The purpose of the report from the SkyNRG-Carbon War Room was to identify ways for Sea-Tac to be able to provide jet fuel that is 1 percent biofuel to all of its jets. The target date for reaching a 1 percent mix is still up in the air, as is any Sea-Tac timetable for achieving a greater percentage of biofuel.
The report noted that taxpayer-supported agencies — such as Sea-Tac’s operator, the Port of Seattle — cannot directly buy biofuels for private airlines. However, the report suggested a number of ways that public agencies could indirectly help private corporations buy, produce and store biofuels. For instance, to support environmental improvements through a biofuels program, a fee could be imposed on parking or vehicles entering the airport, or the airport might lease land or roof space for solar production.
The report noted that the development of local processing of aviation biofuels is a “major hurdle,” but it suggested the port could play a big role in overcoming concerns about the citing of fuel production facilities.
Read the original story: Will the Biofuels Era Take Off at Sea-Tac?
August 3, 2017
By Rick Santorum
Shortly before announcing “Made in America” week, the White House approved new Environmental Protection Agency (EPA) targets for the volume of American-made biofuels that will flow into the nation’s fuel mix next year.
Sen. Chuck Grassley, R-Iowa, probably summed up the collective reaction of most observers when he called the proposal a “mixed bag.”
As promised, President Trump stood by his commitment to rural communities. He rejected the annual call by oil companies to roll back conventional biofuels, often made from U.S. corn, sorghum or other farm crops. The move was greeted warmly across the heartland, where a global crop surplus has pushed down farm incomes for four years running, threatening to stall the entire rural economy.
American ethanol now replaces more than 500 million barrels of imported oil annually and shields drivers from price manipulation by hostile forces within the Organization of the Petroleum Exporting Countries (OPEC). Ethanol also reduces carbon emissions by 43 percent, according to the latest research by the U.S. Department of Agriculture. There’s no shortage of detractors in the petroleum business, but the facts are clear, and homegrown biofuels now supply a full 10 percent of America’s motor fuel, making a major contribution to U.S. energy security.
Unfortunately, those EPA officials who manage non-conventional biofuels seemed to have missed the memo. If finalized, the EPA plan would cut advanced biofuels by 73 million gallons and provide for zero growth in biodiesel.
The loss of 73 million gallons may not seem like much, especially when you consider that we export more than a billion gallons of U.S. ethanol each year. But there’s more to the story. By law, the Renewable Energy Standard (RFS) calls on the EPA to foster growth in domestic bio-energy production. Ignoring that law sends a signal to investors that the U.S. is no longer fertile ground for innovation in renewable fuel.
What the EPA needs to understand is that conventional ethanol and cellulosic ethanol are part of a single, unbroken supply chain that is lifting up rural America. Cellulosic ethanol doesn’t come from a lab in Seattle. It comes from places like Story County, Ia., where Sonny Perdue gave his first major policy speech as Secretary of the U.S. Department of Agriculture. The crowd cheered when he announced that “renewable energy, ethanol, is here to stay and we’re going to work for new technologies to be more efficient.”
Chemically speaking, ethanol is ethanol, whether it’s made from wood chips or corn starch. The cellulosic stuff is just made from cheaper, more abundant plant matter like cobs, stalks, and husks. It’s harder to break down into fuel, but U.S. innovators are already producing commercial volumes.
That’s because first-generation ethanol producers established successful partnerships with farm communities, created efficient supply chains, and invested in the infrastructure to convert agricultural feedstocks into high-value fuel. Some of these companies are now opening new biorefineries, while others are attaching cutting-edge equipment to older facilities that will produce more fuel from every existing harvest. In each case, those making second-generation biofuels possible are the same folks who make first-generation biofuels successful.
With time, there’s no reason all 198 biorefineries across the heartland can’t see similar investments, adding to the hundreds of thousands of jobs supported by biofuel production. Meanwhile, the protein and fat in each kernel is already sent right back into the food chain as low-cost animal feed.
In short, cellulosic ethanol represents the next great American promise of the 11-year-old RFS. Conventional targets have been met. Traditional production will grow, especially if we continue to open foreign markets to U.S. exports. But future growth envisioned under the RFS falls exclusively under the column of advanced biofuels.
These fuels can actually sequester carbon over their full life cycle, significantly reducing emissions, according to the Department of Energy’s (DOE) Argonne National Laboratory. They also supply a fresh revenue stream to rural communities, bringing high-tech jobs into the heartland.
By slashing targets for advanced fuel, the EPA is essentially telling rural America that growth is not an option. That’s not what this administration stands for. President Trump knows that homegrown fuels represent a vital opportunity to create jobs in the heartland while keeping our air clean and promoting U.S. energy dominance. There’s no good reason to hold back that progress. Before finalizing the proposed rule in November, the EPA needs to get on board and tell investors that the U.S. is going to remain a biofuel leader now and well into the future.
RICK SANTORUM is co-chair of Americans for Energy Security and Innovation and a former U.S. Senator from Pennsylvania.
Read the original article: A Better Fuel Mix Can Be 'Made in America'
August 2, 2017
By Joseph Morton
The Trump administration got an earful Tuesday from critics and supporters of federal rules that mandate the use of ethanol and other fuels in the nation’s gasoline supply.
On one side of the long-running argument are conservative groups, along with the oil and gas industry, pushing for the Renewable Fuel Standard to be significantly dialed back or even eliminated.
Those in the biofuels industry and Midwestern agricultural interests, meanwhile, insist that the standards must be preserved and even ratcheted up in the name of consumer freedom, energy independence and job creation.
“The RFS is critical to supporting our agricultural economy while also reducing our dependence on foreign oil and providing consumers with choices at the pump,” Sen. Joni Ernst, R-Iowa, testified.
The Environmental Protection Agency held Tuesday’s hearing to gather public input on its proposed RFS targets — the minimum level of renewables to be blended into the nation’s gasoline supply — set to be finalized later this year.
Its proposed 15 billion gallon requirement for conventional, typically corn-based ethanol generally satisfied ethanol proponents, but requirements for biodiesel and advanced cellulosic ethanol have been met with dismay in some quarters.
Nebraska Gov. Pete Ricketts and Iowa Gov. Kim Reynolds, representing the nation’s top two ethanol-producing states, joined Ernst in testifying about the benefits of a robust Renewable Fuel Standard.
In particular, they said concerns that biodiesel capacity can’t keep up with higher requirements are unfounded.
“The biofuels industry has proven that when you set the bar high, the industry can make the jump,” Ricketts said.
Opponents testified Tuesday that the renewable fuels being promoted actually harm the environment, are often inefficient and divert agricultural resources away from feeding people and into filling gas tanks.
Ricketts and Reynolds both pushed back on the criticisms.
“Our farmers have demonstrated that you can in fact feed and fuel the world,” Reynolds said.
President Donald Trump’s choice of Scott Pruitt to lead the EPA had sparked concern in the Midwest given the Oklahoman’s oil and gas background.
But speaking to reporters after they testified, both governors praised administration officials for making timely decisions and being accessible. Both were included in an energy roundtable at the White House, for example.
Still, they said they will keep up the fight in support of renewable fuels.
“You have to always be out there advocating for it,” Ricketts said. “You can never take it for granted.”
Beyond the RFS, Ernst praised the work of Sen. Deb Fischer, R-Neb., in pushing legislation that would allow higher ethanol blends such as E15 to be sold year-round. But Ernst acknowledged that the proposal has stalled in committee for the time being.
“We are in a holding pattern right now,” Ernst said. “We are trying to push friends and allies to join us in this effort.”
Ernst said she hopes the administration takes to heart supporters’ statements at Tuesday’s hearing, and she recalled Trump’s backing of ethanol on the campaign trail.
“He stated quite clearly all throughout the campaign that he was supportive of these types of energy sources,” Ernst said. “He made that commitment to Iowa. We need to see him double down on that with the EPA as well.”
Read the original story: Govs. Ricketts, Reynolds Testify at EPA Hearing, Urge Greater Federal Support for Advanced Biofuels
July 28, 2017
By Lisa Gibson
The U.S. Court of Appeals for the District of Columbia Circuit released a decision July 28 addressing the case brought against the U.S. EPA over the 2015 Renewable Fuel Standard Final Rule, which set renewables regulations for 2014 through 2017. The court agreed with the petitioners that the EPA erred in how it interpreted the “inadequate domestic supply” waiver provision.
Petitioners include the Renewable Fuels Association, the American Coalition for Ethanol, Growth Energy, the National Corn Growers Association, the National Farmers Union and the National Sorghum Producers, collectively referred to in the case as Americans for Clean Energy. The case was argued April 24.
Some of the petitioners’ challenges to the RFS contend that EPA set the renewable fuel requirements too high, while others argue EPA set the renewable fuel requirements too low. All but the waiver challenge were rejected by the court.
The court decision states:
“We hold that the ‘inadequate domestic supply’ provision authorizes EPA to consider supply-side factors affecting the volume of renewable fuel that is available to refiners, blenders, and importers to meet the statutory volume requirements. It does not allow EPA to consider the volume of renewable fuel that is available to ultimate consumers or the demand-side constraints that affect the consumption of renewable fuel by consumers. We therefore grant Americans for Clean Energy’s petition for review of the 2015 Final Rule, vacate EPA’s decision to reduce the total renewable fuel volume requirements for 2016 through use of its ‘inadequate domestic supply’ waiver authority, and remand the rule to EPA for further consideration in light of our decision. We otherwise deny the petitions for review.”
Bob Dinneen, RFA president and CEO, said in a July 28 statement, “We are still reviewing the decision, but the fact the court has affirmed our position that EPA abused its general waiver authority by including factors such as demand and infrastructure in a waiver intended to be based solely on available supply is a great victory for consumers and the RFS program.”
Read the original article: Court Decision Released on Case Against 2015 RFS
July 26, 2017
By Mark Dorenkamp
Sales of E15 in Minnesota reached a new monthly record in May.
Minnesota Biofuels Association executive director Tim Rudnicki says additional infrastructure is making gasoline blended with 15 percent ethanol more available.
“So when retailers have the dispensing systems and pump decals noting E15 is available, consumers certainly have access to that.”
He tells Brownfield partnerships between the USDA, Minnesota Department of Agriculture, private funds, and other stakeholders are helping retailers provide higher blends of ethanol.
Rudnicki says the less obvious reason for improving E15 sales is through consumer outreach.
“One of the things the Minnesota Biofuels Association has done for the last several years is to create a variety of programs which go to training staff who are available at retail stations. So they know what products are being offered and how to properly instruct customers who have questions about E15.”
May E15 sales in Minnesota were more than 1.1 million gallons, marking the third straight month above 1 million.
Rudnicki says the pace is expected to taper off through the summer because of Reid Vapor Pressure regulations.
You can listen to the full interview here.
And read the original story: Minnesota E15 sales Hit Monthly Record
More...
U.S. Energy Information Administration
July 21, 2017
Through the first six months of 2017, U.S. weekly ethanol production averaged 1.02 million barrels per day (b/d), an increase of 5% over the same period in 2016. On a weekly basis, U.S. ethanol production set a record of 1.06 million b/d in the week of January 27, 2017, and it has averaged near or above 1 million b/d in every week of 2017 except for a few weeks in April, when ethanol plants typically undergo seasonal maintenance. If ethanol production remains relatively high through the second half of the year, as EIA’s Short-Term Energy Outlook (STEO) expects, 2017 will set a new record for annual fuel ethanol production.
Corn is the primary feedstock of ethanol in the United States, and large corn harvests have contributed to increased ethanol production in recent years. The U.S. Department of Agriculture estimates that the United States produced a record 15.1 billion bushels of corn in the 2016–17 harvest year, 11% more than the 2015–16 harvest. Increased corn production and relatively stable corn prices have helped make increased ethanol production more profitable and less susceptible to corn price shocks that had affected ethanol profitability and output in the past.
U.S. ethanol plant capacity increased for the fourth consecutive year in 2017, reaching a nameplate capacity of approximately 15.5 billion gallons per year in January. Total ethanol production is expected to reach 1.02 million barrels per day in 2017, a rate equivalent to 15.8 billion gallons. Annual ethanol production is able to exceed capacity for two reasons: new production capacity has likely been added since the January 2017 capacity survey date, and many ethanol plants are able to operate at levels beyond their nameplate production capacity.
In the United States, ethanol is primarily used as a blending component in the production of motor gasoline and mainly blended in volumes up to 10% ethanol, also known as E10. In recent years, ethanol production increased as a result of higher Renewable Fuel Standard (RFS) targets and growth in domestic motor gasoline consumption, almost all of which is now blended with 10% ethanol by volume. Demand for higher ethanol blends such as E15 and E85 remains limited.
U.S. motor gasoline consumption has grown the past four years, increasing from 8.7 million b/d in 2012 to 9.3 million b/d in 2016, resulting in an increase of 7% in additional ethanol demand by way of E10 blending that has helped to support consistent growth in ethanol production over the same period.
Exports of ethanol have also been increasing. Through the first four months of 2017, U.S. gross ethanol exports have averaged 96,000 barrels per day—40% higher than exports during the same period in 2016—and the highest level on record for that period of the year. In its latest Short-Term Energy Outlook, EIA forecasts that U.S. ethanol net exports will reach nearly 80,000 b/d in 2017, likely surpassing the previous record of 70,000 b/d set in 2011.
Through the first half of 2017, increasing ethanol production rates have outpaced domestic E10 gasoline demand and export growth, leading to elevated ethanol inventory levels at a time when they are typically falling to meet peak driving demand. As of July 14, 2017, weekly ending stocks of ethanol reached 22.1 million barrels, 5% higher than the same time last year and 13% higher than the previous five-year average. Ethanol inventories reached a record level of 23.7 million barrels for the week ending March 31, 2017.
Read the original relase: U.S. Fuel Ethanol Production Continues to Grow in 2017
July 19, 2017
By U.S. Grains Council
U.S. exports of distillers dried grains with solubles (DDGS) to Southeast Asia have increased 16 percent so far this marketing year, according to data from the USDA and analysis by the U.S. Grains Council.
The Southeast Asian region—which includes Brunei, Cambodia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—currently represents the third largest market for U.S. DDGS. Thus far in the marketing year (September 2016-May 2017), sales to the region totaled more than 1.7 million metric tons, accounting for 20 percent of overall U.S. DDGS exports.
U.S. DDGS exports have increased to seven of the eight countries within the region this marketing year. Year-over-year, shipments of U.S. DDGS have increased by 55 percent to Thailand, to 630,000 tons, and 42 percent to Indonesia, to 348,000 tons. In addition, U.S. DDGS exports have more than doubled to both Malaysia and Myanmar compared to the same time the year prior. While sales are down to Vietnam due to outstanding market issues, the country’s more than 490,000 tons in purchases still rank as the seventh largest market for U.S. DDGS.
The council continues to expand efforts DDGS sales in Asia, including with recent grain conferences in Taiwan, Thailand and Vietnam, to provide technical expertise and support as well as connect grain buyers and end-users with U.S. suppliers. The Council is also actively promoting the benefits of U.S. DDGS as a high-quality feed additive through programs like a recent engagement with KFC in Malaysia. This work throughout the region is helping end-users determine how best to incorporate U.S. DDGS into their rations and, combined with attractive prices and available supply, are seeing results in increased demand.
Learn more about the Council’s efforts to promote U.S. DDGS here.
Read the original story: USGC: US DDGS Exports Up 16 Percent to Southeast Asia
July 19, 2017
By Rep. Tama Theis
Minnesotans are known for finding bipartisanship solutions when it comes to agriculture. Ag is an issue that joins all political parties for the benefit of all Minnesotans.
It’s why I am glad to see some of our Minnesota delegation supporting a bipartisan solution in Congress that could help bring certainty and stability to a key part of our energy infrastructure — cleaner, greener American-made biofuels like ethanol.
Unfortunately, due to an antiquated regulation, retailers are not allowed to sell environmentally-friendly E15 during the summer months. There is bipartisan support to fix this outdated policy and allow E15 to be sold year-round, just like all other kinds of fuel. Allowing consumers more choices at the pump is better for our state and better for our state’s economy.
Ethanol is already present in 97 percent of all U.S. gasoline, typically sold as 10 percent ethanol blend. But drivers in Minnesota are among those with immediate access to higher biofuel blends, specifically the 15 percent ethanol blend (E15) sold at Minnoco stations around the state.
These higher biofuel blends reduce greenhouse gas emissions and lower the price at the pump.
Congress should pass the Consumer & Fuel Retailer Choice Act and pave the way for increased use of cleaner-burning, American-made fuel for all Minnesotans.
The author represents District 14A in the Minnesota House.
Read the original article: Consumer & Fuel Retailer Choice Act deserves OK
July 17, 2017
By Holly Galbus
CLAREMONT, Minn. — The expansion and modernization project at Al-Corn Clean Fuel here is expected to be finished a few months earlier than planned.
The project, which began in December, was originally expected to be completed in July 2018. Randall Doyal, CEO of Al-Corn, said it is looks like the project will be finished by the end of April or early May.
"We're a little ahead of schedule, which is great," Doyle said. "There's a lot of progress being made."
Al-Corn, founded in 1994, is a farmer-owned ethanol production cooperative just south of U.S. 14 in southeastern Minnesota. It grinds 17.5 million bushels of corn and produces 50 million gallons of ethanol annually. When the expansion and modernization is completed, production will expand to 120 million gallons of ethanol.
Crews have been at work all across the grounds, doing underground and concrete work. In May, construction of two 112-foot silos was completed. The silos will store distillers dried grains with solubles, a final product in the ethanol production process.
Two new ethanol storage tanks also are being constructed. Al-Corn's current ethanol storage capacity is 1 million gallons. The new tanks, expected to be finished in a month, will each store 2 million gallons.
Nearing completion are four 75-feet tall fermenters; each have a capacity of 1 million gallons. The fermenters stand next to the three older ones, which each have a 500,000 gallon capacity.
Nearby, work on distillation and vaporization vessels is expected to be completed by the end of July.
The concrete bases for two corn bins, each 105 feet in diameter, are in place. Eventually they will store 1.5 million bushels of corn.
Also in the early stage of construction is the CHP, or Combined Heat Power. The unit will generate 40 percent of Al-Corn's electric power. Doyal said the CHP is being built in Texas, and he plans to travel there in August to observe testing on the unit before it is shipped to Claremont. The CHP is expected to be completed by October.
West of the original facility grounds, crews are working on grading the area to expand rail capacity. Once that is done, gravel and ballast will be spread in preparation for the three loops of rail. The facility has a 10-car spur. Upon expansion, the facility will handle 100 cars at a time.
"This will allow us to get to markets we haven't reached yet," Doyal said.
When completed, the Al-Corn Clean Fuel facility will cover 200 acres.
Until then, it's business as usual for the plant. Doyal said the plant has continued to operate at full capacity throughout construction. Farmers with trucks full of corn continue to stream into the entrance, and line up in preparation for weighing and processing.
Read the original article: Al-Corn Expansion a Bit Ahead of Schedule
July 17, 2017
The concentration of ultrafine particles less than 50 nanometers in diameter rose by one-third in the air of São Paulo, Brazil, when higher ethanol prices induced drivers to switch from ethanol to gasoline, according to a new study by a Northwestern University chemist, a National University of Singapore economist and two University of São Paulo physicists.
Environmental protection agencies across the world currently do not measure or regulate particles of this size, which studies have shown to be harmful to human health.
The research team also found when São Paulo drivers—some two million of them—switched back to ethanol because prices had gone down, the concentration of ultrafine particles also went down. This lockstep movement illustrates a very tight correlation between fuel choice and nanoparticles in the air.
"We studied São Paulo, but there are many North American cities, including Chicago, with similar air chemistry, especially spring through fall," said Franz M. Geiger, professor of chemistry in Northwestern's Weinberg College of Arts and Sciences.
"The push we are seeing in large cities away from gasoline and toward vehicles powered by ethanol, electricity or a mix of the two will result in a reduction of these ultrafine particles. This likely comes with a health benefit—these particles, below one micron, have the potential to get deeply into your lungs," he said.
Geiger and Alberto Salvo, an associate professor of economics at the National University of Singapore, led the unusual study—their second with São Paulo big data. The fact that São Paulo consumers can and do switch between fuels for reasons unrelated to air quality provided the researchers with a real-world laboratory for studying the effects of human behavior at the fuel pump on urban air pollution.
The study will be published July 17 by the journal Nature Communications. The prospect of increased biofuel use and mounting evidence on ultrafines' health effects make the results policy relevant, the authors write.
"With this knowledge, we hope more money and human resources will be invested in trying to understand and possibly monitor these ultrafine particles," said Salvo, who formerly was with Northwestern's Kellogg School of Management. "The big unknown is what type of particles are the most harmful to health."
The interdisciplinary team conducted a regression analysis of traffic, consumer behavior, aerosol particle size and meteorological data from January 2011 through May 2011. The data studied was from before, during and after the time of a major fuel switch due to a large fluctuation in ethanol prices.
The researchers also found the choice of fuel had no effect on the concentration of larger particles. These particles include fine particulate matter 2.5 microns in diameter (PM2.5) down to particles 100 nanometers in diameter. The U.S. and many other countries regulate PM2.5, but particles smaller than PM2.5 are not regulated.
Geiger and Salvo were fortunate to have access to aerosol particle size distribution data from an unrelated research project overseen by Paulo Artaxo and Joel Brito at the University of São Paulo. Artaxo and Brito's experiments captured data from before, during and after the major fuel switch. They are co-authors of the Nature Communications paper, along with Geiger and Salvo.
The Nature Communications study builds on an earlier study in which Geiger and Salvo found that an increase in ethanol use resulted in a significant increase in ozone concentrations in São Paulo. Officials, Geiger said, will need to weigh the increase in ozone against the decrease in nanoparticles when ethanol is used.
Next, for the third chapter of the story, the research team would like to determine what happened in terms of health outcomes in São Paulo as cars switched out of gasoline to ethanol and back to gasoline.
The paper is titled "Reduced ultrafine particle levels in São Paulo's atmosphere during shifts from gasoline to ethanol use."
Explore further: Study shows lower ozone pollution in Sao Paulo when drivers switched from ethanol to gasoline
Read the original story: Tiny Particles Increase in Air with Ethanol-to-Gasoline Switch
July 12, 2017
By
MINNESOTA, July 12, 2017 - In its latest newsletter, Minnesota-based Al-Corn Clean Fuel announced its undenatured yield averaged 2.911 gallons of ethanol per bushel in the second quarter. The co-op said this moved production closer to the “magic number” of 3 gallons of fuel ethanol per bushel. The increased yield was achieved through enhanced focus on current operations and improvements from a major expansion, which added new fermenters and addressed flooding issues.
Read the original story: Al-Corn Ethanol Production Closes in On 3-gallon Per Bushel Goal
July 12, 2017
By Erin Voegele
The U.S. EPA has announced plans to hold a public hearing Aug. 1 in Washington, D.C., for its recently released rule to set 2018 renewable volume obligations (RVOs) under the Renewable Fuel Standard, along with the 2019 RVO for biomass-based diesel.
The agency released a prepublication version of the proposed rule on July 5. The proposal calls for approximately 19.24 billion gallons of renewable fuels to be blended into the national fuel supply next year. This includes 238 million gallons of cellulosic biofuel, 2.1 billion gallons of biomass-based diesel and 4.24 billion gallons of advanced biofuel. For 2019, the new proposal calls for the biomass-based diesel RVO to be maintained at 2.1 billion gallons.
In a notice posted to its website, the EPA said the hearing aims to provide interested parties the opportunity to present data, views, or arguments concerning the proposal. The agency may ask clarifying questions during the hearing, but will not respond to presentations at that time. Written statements and supporting information submitted during the public comment period will be considered with the same weight as information presented at the hearing.
Those wishing to testify at the hearing should notify the EPA by July 25. Additional information is available the EPA website.
The EPA is expected to open a 45-day public comment period on the proposed rule following its publication in the Federal Register. A prepublication version of the rule can be downloaded from the EPA website.
Read the original story: EPA schedules hearing on RFS proposal for Aug. 1
July 10, 2017
By R
July 10th is U.S. Energy Independence Day, a time to celebrate Earth-friendly American ethanol. Last year alone, the ethanol industry created and supported 340,000 jobs and contributed roughly $42 billion to the U.S. Gross Domestic Product (GDP) – a number exceeding the total GDP of many countries. And, the production of more than 15 billion gallons of ethanol meant that the U.S. needed to import approximately 540 million fewer barrels of crude oil to meet the country’s demand for gasoline.1
One key to the future success of the U.S. ethanol industry, however, will be increased access to higher ethanol blends, such as E15. To date, American drivers have surpassed 1 billion miles on E15 and E15 is currently sold at more than 800 retail outlets across 29 states, with expansion expected to double.2 Greater access to E15 though, including during the high-volume, gasoline consumption summer months, is essential.
Looking ahead, retail partnerships will be key to continuing to expand the availability for higher ethanol blends. Earlier this year, Syngenta announced a $340,000 donation to the Prime the Pump Fund. Prime the Pump is helping high-volume, progressive-minded and industry-leading fuel retailers, who will demonstrate the performance, cost savings and profit opportunity of marketing higher ethanol blends, such as E15.
According to Growth Energy, the vehicles that E15 is approved for account for more than 87 percent of all those on the road today. And, nearly 20 million vehicles are approved for any blend of ethanol up to 85 percent ethanol. Clearly, we have the vehicles capable of using blends higher than E10, but consumers need greater access to stations capable of providing it. Efforts like Prime the Pump will help make that access a reality. The widespread availability of flex-fuel vehicles – as well as those eligible to use E15 – demonstrates that there is a market ready for a less expensive, higher octane, more environmentally friendly alternative fuel.
Consumers across the USA clearly benefit from the reduced cost of ethanol and lower emissions. However, rural America, specifically small towns and communities, benefit greatly as well. Syngenta’s Enogen® corn enzyme technology is one example of a technology advancement that allows ethanol plants to pay premiums to corn growers. These premiums are substantial with likely payouts of $34 million from ethanol plants to corn growers in rural communities this year alone. These dollars are then circulated in these communities, helping to generate tax dollars for schools and roads and keeping rural America vitalized.
New technologies are also helping to make ethanol even more sustainable. For example, approximately 10 percent of the corn kernel dry weight is fiber, and converting corn kernel fiber feedstock to cellulosic ethanol has been possible for some time. However, recent advances in technologies can enable commercial deployment today. In fact, the approximately 12 million tons of corn kernel fiber feedstock already available at U.S. dry grind ethanol plants each year could produce a potential 1.5 billion gallons of cellulosic ethanol – with no additional corn.3
In 2014, the U.S. Environmental Protection Agency added corn kernel fiber to the list of qualifying cellulosic biofuel feedstocks as part of the Renewable Fuel Standard (RFS). That same year, using Cellerate™ process technology, Quad County Corn Processors (QCCP) was the first commercial cellulosic facility – using corn kernel fiber as feedstock – and achieved EPA certification to generate D3 RINs. Through November 2016, QCCP’s output represented approximately 85 percent of D3 RIN ethanol produced.4 To date, QCCP has produced more than 6 million gallons of cellulosic ethanol.
Since the passage of the Energy Policy Act of 2005, ethanol has become an important success story. Ethanol is helping America reduce its dependence on foreign oil, lowering prices at the pump, improving the environment with lower emissions, and growing the economy with jobs that can’t be outsourced. Syngenta is proud to partner with corn growers and the ethanol industry to help provide consumers with the choice to purchase a superior, higher octane fuel and pay less.
Read the original story: Opinion: Increased Access to E15 Will Help to Drive U.S. Energy Independence