In the News
September 21, 2016
WASHINGTON — As millions of Americans say goodbye to summer and prepare to store their boats, motorcycles, lawn mowers, leaf blowers, and other equipment for the winter, a new study by the Department of Energy (DOE) is providing fresh insight into a decades-old debate about the impacts of ethanol-blended gasoline on water uptake and “phase separation” in small and off-road engines.
The study, conducted by DOE’s National Renewable Energy Laboratory (NREL), found that the petroleum components of ethanol-blended gasoline become degraded and unfit for use in an engine long before the ethanol portion takes up enough water to cause phase separation in the fuel tank. “Phase separation” occurs when an excessive amount of water is introduced into the fuel tank leading the ethanol and water to mix and sink to the bottom of the tank. In other words, gasoline becomes “stale” and unusable before water uptake by the ethanol component becomes a concern.
“Significant gasoline weathering (evaporation of the most volatile components) can occur over one month of storage in a high-temperature, high-humidity environment, with total mass losses as high as 30-70% for certain tanks,” according to the study, which was commissioned by the Renewable Fuels Association (RFA). “This means gasoline weathering, which can have a negative effect on fuel quality, generally occurs well in advance of any issues related to phase separation. The fuel vapor pressure may drop to levels where the fuel is not fit for purpose (engine will be difficult or impossible to start) and there may also be gum formation.”
As part of the study, NREL scientists stored gasoline-ethanol blends ranging from E0 (0% ethanol) to E85 (83% ethanol) in actual lawn mower fuel tanks over several months in a climate-controlled chamber meant to replicate hot, humid environments like Houston and Orlando. The samples were tested at regular intervals for evidence of gasoline weathering and water uptake.
In every case, the hydrocarbon components of the fuel became unfit for use in an engine before water uptake became a concern. Over time, the fuel samples experienced significant loss of volatility, loss of mass, reduced octane rating, increased concentration of sulfur and gum, and other degradations. The study found that ethanol-free gasoline (E0) degraded “to the same degree [as ethanol-blended fuels] during this timeframe…An ethanol-free gasoline stored in the same conditions for the same period of time would likely be problematic despite a lack of phase separation.”
For gasoline-ethanol blends, it often took more than three months for phase separation to occur, meaning the fuel had already weathered to a point it was unusable. “In a small engine fuel tank in a constantly high-temperature, high-humidity environment, it takes three months or longer for E10 and other ethanol blends to take up enough water for phase separation,” the study found. “This confirms the statement by Mercury Marine that water uptake in E10 blends ‘…does not happen at a level or rate that is relevant.’”
The research also found that an advantage of ethanol blends is that they do in fact hold more water in suspension without phase separation than the hydrocarbon components of gasoline. The scientists found that “…more ethanol improves the fuel’s resistance to phase separation. This is an advantage that can help keep fuel systems ‘dry’ by moving low levels of water out of the system.”
RFA President and CEO Bob Dinneen offered the following comments on the new study:
“Simply put, critics who continue to suggest E10 is a problem for small engines and boat motors are all wet. This research from NREL clearly demonstrates once and for all that ethanol actually helps these engines run more efficiently. It also shows that gasoline goes bad long before the ethanol in the tank could cause any problems due to moisture uptake. This research effectively disproves the half-baked anecdotes and horror stories about E10 and small engines that have been pushed for decades by ill-informed biofuel opponents and snake-oil additive salesmen.
“Every manufacturer of small and off-road engines has approved the use of E10 in their equipment for many years. If owners of this equipment simply follow the manufacturers’ recommendations for fuel, maintenance, and winterization, they won’t have any issues at all. But, as this study shows, letting gasoline sit in your tank for extended periods of time is likely to cause some issues—irrespective of whether the gasoline contains ethanol or not.”
A summary of the NREL study is available here and the full study can be found here.
Read the original story: New DOE Study: Gas Becomes “Stale” Long Before Water Uptake Becomes a Concern
September 19, 2016
By Anne Steckel
Headlines tell us the world is awash with oil. Gas costs less than bottled water in many places, and petroleum markets are in a prolonged slumpthat’s wreaking havoc on the industry’s bottom line.
But my instinct tells me this won’t last long. I’ve lived long enough to have seen this movie before. Gas prices fall, and gas prices rise. The only constant is that consumers, and Congress, can’t do much about it in a world dependent on oil.
To hear the oil industry tell it, the status quo is just fine. We have more than enough petroleum to continue our dependence on oil for the foreseeable future, they argue. The current “era of abundance,” they say, has eliminated the need for alternative fuels and the policies supporting them such as the Renewable Fuel Standard (RFS).
Nothing could be further from the truth, and we shouldn’t let the fleeting benefits of today’s low oil prices cloud our judgment. Instead of knee-jerk energy policy reacting to the oil markets, we need stable, long-term policies like the RFS that help develop new technologies, diversify American energy supplies and protect consumers.
Anyone doubting this should look to the International Energy Agency’s most recent monthly oil market report, which found that the Middle East’s share of the world market has climbed recently to 35 percent – the highest it’s been since the late 1970s. This comes after OPEC nations, Russia and others have openly manipulated supplies to maintain their dominance on the global market.
Imagine if other industries did this – if nations openly colluded to shape the cost of medicine or food. The world would be outraged, and conspirators would go to jail. Yet with oil – the commodity that most shapes the health of the global economy – we’ve resigned ourselves to state-supported price-fixing. It’s because we are dependent on it. We have no choice.
This is the same oil market that US oil lobbyists argue is a free market. Big Oil routinely maintains that we should simply let the market work – that we don’t need policies supporting alternative fuels. Never mind that there is no true free market in oil, and that even when we drill more at home, prices are set on the heavily manipulated global market.
This also ignores the fact that because our economy is so dependent on energy, Congress has wisely adopted policies for more than a century to develop diversified domestic production. This includes tax incentives, low-cost loans, federal research, and grants for all manner of energy industries, including oil and gas, nuclear power, wind and solar, coal, and fracking.
Without those polices, we wouldn’t be the global leader in energy production that we are today.
The RFS, signed into law by President George W. Bush in 2005 with bipartisan congressional support, is a continuation of that strategy that is doing the job. We now get nearly 10 percent of our transportation fuel from clean, renewable sources, and that percentage will only rise if we stay the course.
And it’s not just about corn ethanol. The industry I work for, biodiesel, has grown from a small, niche business into a commercial-scale industry with production plants in almost every state in the country. Last year, Americans consumed a record of more than 2 billion gallons of biodiesel, made from a variety of resources such as soybean oil and recycled cooking oil.
Along with diversifying the market, biodiesel is creating American jobs and economic activity. It significantly reduces greenhouse gas emissions – by 57 percent to 86 percent compared with petroleum diesel, according to the EPA, qualifying it as an Advanced Biofuel under the RFS.
This is a tremendous success for the country that we should all support – regardless of the latest price of a barrel of oil. We all know that price will rise again, and when it does the public will demand that Congress do something about it. Nothing changes over night, but the RFS is smart policy that already is shaking up the oil monopoly and giving consumers a more competitive market.
Steckel is Vice President of Federal Affairs for the National Biodiesel Board. With nearly 200 member companies, NBB is the leading U.S. trade association representing biodiesel and renewable diesel.
Read the original story: Do We Still Need a Renewable Fuel Standard?
Sept 20, 2016
By Ann Bailey
Jennifer Roepke recognizes her work is just part of the process. The lab manager at Heartland Corn Products in Winthrop, Minnesota, takes great pride in doing her job in a way that will benefit not only her laboratory, but the company as a whole. “A lab manager in ethanol needs to understand the process—from the grinding of the corn to the shipping of the ethanol,” Roepke says.
Heartland Corn Products Vice President Tim Miller appreciates Roepke’s attitude. “She’s our Rock of Gibraltar,” Miller says. Roepke was the first person he hired when the plant started up in 1995, he notes. With her background in science, she seemed like she would be a good fit for the position at the new ethanol plant, he says.
Roepke, who earned a degree in biomedical science from St. Cloud State University in 1990, worked in the genetics laboratory at Mayo Clinic in Rochester, Minnesota, for four years before moving to the Winthrop area in 1994 with her husband, Scott, who works as a biologist at the Minnesota Department of Natural Resources. “I thought: ‘What am I going to do there?’’’ Roepke recalls. When Heartland Corn Products brought the ethanol plant on line in 1995, Roepke decided to apply for the job, even though she knew what she would be doing in the lab there would be very different from what she had done at Mayo Clinic. “There aren’t a lot of genetics labs out in small towns,” Roepke says. “If I was going to take a job close to where my husband was going to work, I was going to have move out of that type of medical field.”
While there was a learning curve involved in working in an entirely different type of laboratory, a bigger challenge was moving from a large company to a small one, Roepke says. “You have to wear a lot more hats in a small company. You have to learn how to cross-train and a do lot of different tasks, whereas at Mayo Clinic, you kind of learn one thing and become very, very efficient at it.”
She immersed herself in learning about ethanol in her first few weeks on the job, traveling to an ethanol plant in South Dakota to be mentored by a lab manager. When she finished that, she went to a yeast school in Kentucky. “I had a lot to learn—still do,” Roepke says. She continues her education on the ethanol industry and innovations in lab techniques and technology by attending workshops and using the resources available through the Renewable Fuels Association, she says. “They give us a lot of guidance.”
Two Decades of Change
During the past couple of decades, technology has significantly changed the way work is done in the laboratory at Heartland Corn Products. “It’s a lot different than it used to be,” Roepke says. “The specification list on ethanol has been added to through the years and each time they make an addition, it’s an additional test. That’s constantly changing, and I am sure there will be more testing in years to come. We’ve added a lot of equipment for different things. We’ve added density meters, a Karl Fischer titrator, ion chromatography. Another big one is gas chromatography.”
The additional tests are required because they help ensure the product quality is more consistent, Roepke says. Besides all of the tests that her lab conducts, she and the lab technician also issue fill certificates when unit trains arrive to pick up ethanol at Heartland Grain Products. “We take a sample, run all of the tests on it to be sure that the numbers meet specifications and then we issue a certificate of analysis to our customers for those trainloads of ethanol,” Roepke says.
She enjoys the challenge of keeping on top of the changes in the ethanol industry. “I like there’s always something new to be learning. A lot of the learning comes from the changes in the enzymes and the yeasts and how we’re trying to optimize fermentation,” she says.
Just as Roepke’s knowledge about ethanol industry laboratory testing and procedures has grown during the past 21 years, so has the capacity of Heartland Corn Products. “It used to be a tiny 10 million gallons a year (MMgy) plant,” Roepke says. “Now the plant is 100 MMgy, 10 times what it originally started at.”
Roepke takes pride in doing her work in a way that has a ripple effect down the line. She strives to catch details in lab results that help Heartland save water and be more energy efficient. “You look at a sample that’s coming out of a certain step in the process and ask questions, if you see changes have occurred along the way, and try to figure out what is causing lab numbers to drift away from the baseline,” Roepke says. “It’s establishing normal so when things do change, you know they’re changing.”
Finding ways to improve efficiency is what Heartland Corn Products strives to instill in all of its employees, Miller says. “That’s always been the goal for all of us. We’ve all worked together on that,” he says.
It’s evident Roepke has a broad knowledge of Heartland Corn Products and understands the importance of seeing the big picture. During a plant tour, she shares information with visitors about plant equipment—both inside and outside. She talks about the new buildings and tanks that have been constructed over the years, and why they were added to the ethanol plant.
“She’s got a wealth of knowledge about how everything works both in the lab and in the plant,” Miller says. “She’s our go-to person. She’s our E.F. Hutton. When she talks, we all listen. She knows the process from the bottom up and she has been a great employee for us, a wonderful resource.”
Roepke not only has a lot of knowledge about how the ethanol process works, she’s willing to share it with other Heartland employees, he says. “She works with the operators and with the supervisors and explains to them how the process is working both biologically and physically. (She) teaches.”
“When we have new operators. I spend quite a bit of time with them, trying to get them to understand what every step in the process is for and why it’s important for them to watch their parameters,” Roepke says.
Miller appreciates the pride that Roepke takes, not only in her work in the Heartland Corn Products laboratory, but in the company as a whole. “She acts like she owns the place, which is good.”
Read the original story here : At The Heart Of The Ethanol Process
Sept 14, 2016
Consumer choice at the pump will get a shot in the arm on Thursday as the Environmental Protection Agency’s (EPA) arcane restriction on summertime E15 sales finally expires for the year. The end of EPA’s “volatility control season” means many gasoline retailers can again sell E15 to conventional automobiles built in 2001 and later years without needing to secure more expensive, specially-tailored gasoline blendstock.
In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not allow E15 to benefit from the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver that is available to E10 blends. As a result of this disparity, retailers in conventional gasoline areas (most of the country) would have to secure specialty gasoline blendstocks in order to continue selling E15 in the summer. Such gasoline blendstock is generally unavailable in conventional gasoline areas and would be uneconomical to ship. EPA has jurisdiction over gasoline volatility from June 1–Sept. 15 every year.
“In 1989, EPA provided an RVP waiver to 10 percent ethanol blends, concluding there would be no air quality consequence and retailers would otherwise be unable to secure blendstocks for ethanol blending year-round,” said RFA President and CEO Bob Dinneen. “Those same circumstances exist for E15. Indeed, as data submitted by RFA to EPA has shown, emissions from E15 are even lower than E10 and consumers would benefit all year long from a fuel that is higher octane, lower cost and cleaner.”
In a letter to EPA in December 2015, RFA urged the agency to take immediate administrative action to eliminate this regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends. EPA has stated it does not believe it has the statutory authority to extend the 1 psi RVP waiver to E15. While RFA disagrees with EPA’s conclusion on that issue, another option available to the agency would be to simply require lower-RVP summertime conventional gasoline blendstocks for mixing with all ethanol blends.
“We just want RVP parity for E15 and E10, so the marketplace and consumers have the freedom to choose the fuel that works best for them,” Dinneen said. “EPA’s continued inaction on the summertime volatility restrictions is stifling the growth of higher ethanol blends and incorrectly using that as justification to propose lower 2017 renewable fuel standard targets. We reiterate the need for EPA to address this issue.”
Joining the growing chorus of calls to secure RVP parity for E15 and E10, on Tuesday a bipartisan group of seven Midwest governors sent a letter to EPA Administrator Gina McCarthy, asking the agency to eliminate the unfair E15 RVP treatment.
“There are over 300 stations in 24 states that offer E15 for sale, including retailers such as Sheetz, Kum & Go, Murphy USA and Protec Fuel,” said RFA Vice President of Industry Relations Robert White. “However, most of those stations are not in reformulated gasoline markets and have to put their E15 sales on hold during the summer months to comply with these needless restrictions. EPA’s summer volatility restriction remains the top hurdle for further growth of E15 and something that needs to be addressed.”
To help with further market penetration, HWRT Oil Company will begin offering pre-blended E15 on Friday at the terminal level in three states, giving retailers further access to the fuel blend. At the same time, Diesel Dogs, a fuel distributor in Minnesota, will also begin offering E15 to retailers. Meanwhile, thanks to the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership program, approximately 1,500 new stations will be offering E15 in the coming months.
Read the original story here : Bureaucratic Barrier To Cleaner, Cheaper E15 Will Be Lifted Thursday
Sept 7, 2016
Gevo Inc. recently announced that it has entered into a heads of agreement with Deutsche Lufthansa to supply Gevo’s alcohol-to-jet fuel (ATJ) from its first commercial hydrocarbons facility, intended to be built in Luverne, Minnesota. The terms of the agreement contemplate Lufthansa purchasing up to 8 million gallons per year of ATJ from Gevo, or up to 40 million gallons over the 5 year life of the off-take agreement.
The heads of agreement establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build-out Gevo’s first commercial scale hydrocarbons facility. The heads of agreement is non-binding and is subject to completion of a binding off-take agreement and other definitive documentation between Gevo and Lufthansa, expected to be completed in the next few months.
Read the original story here
September 06, 2016
By Erin Voegele
On Aug. 24, the New York Department of Agriculture and Markets published a proposed rule in the New York State Register proposing to update the statement’s fuel regulations to allow for the sale of E15 in model year 2001 and newer vehicles.
In addition for allowing for the sale of E15 blends, the proposed rule also includes a provision that will require ethanol blends to comply with certain labeling requirements required by federal regulation. The proposal states retailers “must post the octane rating of [all] automotive gasoline, except gasoline-ethanol blends containing more than 10 percent and not more than 15 percent ethanol by volume.” This must be accomplished by “putting at least one label on each face of each gasoline dispenser through which” gasoline is sold. If two or more kinds of gasoline with different octane ratings are sold from a single dispenser, the retailer must but separate labels for each kind of gasoline on each face of the dispenser. In addition, the proposed rule will require automotive gasoline to meet updated ASTM International standards.
Growth Energy has spoken out in support of New York’s proposed move to E15, noting the state consumes more than 5.5 billion gallons of gasoline each year, making it the fourth largest gasoline market in the U.S. Growth Energy also said it has worked extensively with Poet over the past two years to update the regulation.
“This proposal marks a major victory for consumers, who would gain access to cleaner, more affordable choices at the pump,” said Emily Skor, CEO of Growth Energy. “Biofuel blends, like E15, are already used on the racetrack at Watkins Glen, and if the proposal is approved, drivers will be able to experience the same economic, environmental and performance-enhancing benefits. We appreciate the department’s work on this regulation to reflect federal approval of E15 and we look forward to working with retailers across the Empire State to quickly get E15 into the market.”
“E15 represents an exciting opportunity for New Yorkers to select affordable, clean-burning biofuels produced at plants like ours,” added Timothy Winters, chief financial officer of Western New York Energy. “Back in 2004, we set out with a mission to harness the power of Western New York’s renewable resources to provide consumers with a high-octane, earth-friendly option at the pump. With higher blends like E15 in the marketplace, we can continue to help drivers save money and improve the quality of the air we all breathe, all while creating jobs and growing our local economy.”
“E15 is a 21st century fuel for 21st century vehicles and is approved for nearly 90 percent of the cars on the road today,” continued Skor. “By increasing biofuel blends, we can reduce our dependence on foreign oil, cut carbon emissions, and limit the need for toxic gasoline additives associated with cancer, water contamination and smog. New York state has long been a pioneer in clean energy, and this proposed regulation change is one more step toward sustainable economic growth for New York communities, farmers, and drivers, as well as a fair and open fuel marketplace.”
According to information published in the state register, a public comment period on the proposed rule will be open for 45 days. Additional information is available on the New York State Register website.
Read the original story: New York Proposes Updated Fuel Regulations Allowing for E15
Austin, Texas – August 30, 2016 - Wayne Fueling Systems (“Wayne”), a global provider of fuel dispensing, payment, automation, and control technologies for retail and commercial fuel stations announces that all Wayne North American retail fuel dispensers will be supplied as compatible and ULListed to E25 (25 percent ethanol and 75 percent petroleum) as a standard feature. The shift from the standard Underwriters Laboratory Listing of E10 to E25 is effective immediately for Wayne Ovation™ fuel dispensers and by year-end for the Wayne Helix™ family of dispensers.
With the potential shift to higher ethanol blends necessary to meet future fuel requirements brought about by more stringent CAFE standards and GHG reductions by 2025, this move is an expression of Wayne’s continued intent of supplying its customers with the most flexible, reliable and future-proof equipment options. This follows the same thinking that led to the development of Wayne’s dual blending series, which enabled the maximum number fuel grade selections to support mid-level ethanol blends.
“We are pleased to be the first manufacturer to offer E25-Listed dispensers as standard to our North American dispenser product offering, reflecting the growing interest from our customers to prepare for any and all necessary changes to the fueling infrastructure in the future,” said Wayne VP of Products and Services, Tom Cerovski. At this time, 90 percent of dispensers in the industry are only certified to dispense E10 fuel.
Fuel Dispensers to E25
UL-Listing of E25 will be standard offering for all Wayne retail fueling dispensers.
This standardization is effective immediately for Wayne Ovation™ fuel dispensers and by yearend for Wayne Helix™ fuel dispensers
For more information on Wayne’s Ovation and Helix fuel dispensers, go to www.wayne.com.
Aug 25, 2016
WASHINGTON — Today, University of Michigan Energy Institute researchers, led by longtime biofuels critic Professor John DeCicco, released a study funded by the American Petroleum Institute (API) claiming biofuels do not reduce carbon emissions compared to petroleum. Below is a statement from Renewable Fuels Association President and CEO Bob Dinneen:
“This is the same study, same flawed methodology, and same fallacious result that Professor DeCicco has churned out multiple times in the past. He has been making these arguments for years, and for years they have been rejected by climate scientists, regulatory bodies and governments around the world, and reputable lifecycle analysis experts.
“As crazy as it sounds, Prof. DeCicco is essentially suggesting that plants ultimately used for bioenergy don’t absorb carbon dioxide from the atmosphere as they grow. In other words, he and his sponsors at the API are arguing that the scientific community’s centuries-old understanding of photosynthesis and plant biology is wrong. DeCicco’s assertion that plants somehow emit more carbon when burned as fuel than they take in from the atmosphere during photosynthesis defies the most basic laws of plant physiology.
“Just like Prof. DeCicco’s last study, this work was funded by the API, which obviously has a vested interest in obscuring and confusing accepted bioenergy carbon accounting practices. It’s a bit like the tobacco industry funding a study that says bubble gum is worse for the human body than cigarettes. While it’s flattering that API has taken such an interest in the climate benefits of biofuels, the public would be better served if the oil industry spent its time and money examining and owning up to the very real — and very negative — climate impacts of petroleum.
“The truth is, biomass crops used to produce energy act as temporary carbon sinks. During growth, they quickly absorb CO2 that was just in the atmosphere. The same amount of CO2 is then returned to the atmosphere when the carbon in the crop is combusted for energy. In this way, the use of biomass for energy recycles atmospheric carbon as part of a relatively rapid cycle. In contrast, the use of fossil fuels adds to atmospheric CO2 by emitting carbon that was previously sequestered deep underground for millions of years.
“According to researchers at Duke University, the University of Minnesota, and Oak Ridge National Laboratory: ‘A critical temporal distinction exists when comparing ethanol and gasoline lifecycles. Oil deposits were established millions of years in the past. The use of oil transfers into today’s atmosphere GHGs that had been sequestered and secured for millennia and would have remained out of Earth’s atmosphere if not for human intervention. While the production and use of bioenergy also releases GHGs, there is an intrinsic difference between the two fuels, for GHG emissions associated with biofuels occur at temporal scales that would occur naturally, with or without human intervention. …Hence, a bioenergy cycle can be managed while maintaining atmospheric conditions similar to those that allowed humans to evolve and thrive on Earth. In contrast, massive release of fossil fuel carbon alters this balance, and the resulting changes to atmospheric concentrations of GHGs will impact Earth’s climate for eons.’”
Read the original story here: API-Funded Study Obscures Lifecycle Emission Benefits Of Biofuels
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By Sen. Jim Talent
Aug 23, 2016
As seen on these pages in the past, it’s not uncommon for commentators to lump America’s thriving biofuel sector into the same category as taxpayer-funded green energy flops like Solyndra. Yet the facts show that the Renewable Fuel Standard (RFS) has been remarkably successful at enhancing America’s energy security by smoothly integrating a growing share of home-grown biofuels into the domestic energy mix, gradually reducing our need for oil imports. No other policy has so effectively undermined the international oil cartel that seeks to profit from our dependence on oil.
Today, ethanol and other biofuels meet about 10 percent of our transportation fuel needs. Without the RFS, which requires refiners to meet specific blending targets, there is simply no way that our dependence on foreign oil could have fallen by half since 2005. This has occurred not only without increasing the price of automobile fuel, but while decreasing it; a gallon of ethanol sells for about $1.70 per gallon, so ethanol blends hold down the price at the pump. Moreover, the market-based trading system that allows refiners to buy and sell biofuel credits — or RINS — has given the industry broad flexibility to meet the changing needs of the marketplace with minimal cost or inconvenience.
It’s true that the trading system opens up some opportunities for fraud, but the answer to that is not to eliminate the trading system, much less the RFS, but to prosecute the fraud. In any event, the RIN trading system is much less high risk for abuse than other private or public programs (the credit card system and Medicare come to mind) because the customers for the credits are sophisticated oil companies like Valero and ExxonMobil. If Exxon buys fake biofuel credits from a scam artist working out of his garage, that is regrettable, and the perpetrators should be and are prosecuted, but Exxon and Valero are surely in a better position to protect themselves than the typical consumer or beneficiaries of other programs.
As one of the original sponsors of the RFS, I always point out that there are no subsidies for corn ethanol, and that the tax breaks supporting conventional ethanol were phased out years ago. The RFS is no give-away program; it simply guarantees market access in a sector where one class of producers — dominated by foreign players — would otherwise have a monopoly over consumer options. It ensures that domestic biofuel producers have a spot at the pump, where consumers can select the most affordable option, which is typically an ethanol blend.
Their current strategy has been to flood the market, driving out new competition in the U.S. It’s working. Employment in the U.S. oil and gas sector fell by 142,000 between October 2014 and May 2016 — a 26 percent drop that severely limits our ability to bring production back online. But some OPEC members are already looking forward to phase two, when they pull back on global supplies and drive prices at the pump back to record levels. The American consumer is just a pawn in this game, but it is not a game that can be played against renewable fuels, because of the RFS. The price of ethanol and other renewables is set by competition, not by a cartel.
As a result, billions of dollars have been invested into the domestic biofuels industry. Home-grown options are more affordable than ever, they produce dramatically fewer emissions, and displace toxic gasoline additives linked to cancer and groundwater contamination. Moreover, the industry now supports more than 852,000 American jobs. And if the renewable fuels industry grows enough, it has the potential to break the market power of the international oil cartel.
To combat this success, some in the fossil fuel sector spread myths about the performance of biofuels in modern engines, but years of data show the truth. Just this month, research from Argonne National Laboratory, the National Renewable Energy Laboratory and Oak Ridge National Laboratory demonstrated that high-octane ethanol blends can deliver more power and greater mileage than conventional gasoline. NASCAR mechanics have known that for over a decade, which is why they rely on ethanol-blended fuels to keep their engines running.
In short, there’s a world of difference between alternative energy done right and alternative energy done wrong. The innovative approach offered by the RFS works. It’s a proven solution that strengthens our energy security, combats harmful emissions, and generates tremendous economic advantages for U.S. workers and consumers. It remains the best path to a free market — the most effective tool to take the levers of power out of the hands of a hostile international cartel and put it into the hands of domestic producers who, through innovation and competition, are lowering the price of fuel and enhancing the energy security of the United States.
Read the original story here : Renewable Fuels Deserve A Place At The Pump
By Mike Lorenz
Aug 19, 2016
Summer is coming to a close, which means people are wrapping up vacations, kids are back in school and the summer driving season is coming to an end. For many, the summer driving season simply means more people out on the road and generally higher gas prices, but for fuel retailers the period presents a special problem.
Back in 1990, Congress limited the amount of evaporative emissions from vehicle fuel at 9 pounds per square inch (psi) Reid vapor pressure (RVP) in the Clean Air Act. While pure ethanol has a 3 psi RVP, when combined with gasoline at low levels, the RVP of the total fuel blend exceeds 9 psi. To accommodate ethanol blends, Congress specified that fuel with 10 percent ethanol would receive a 1 psi RVP waiver, and extended that relief to blends below 10 percent. Unfortunately, EPA has shown no willingness to extend the waiver to blends above 10 percent, which severely restricts the sale of E15 during the summer driving season, June 1 to Sept. 15.
The restrictions placed on E15 due to the statutory RVP limits cause a number of problems for retailers who want to offer consumers a wide variety of choice at the pump. First off, it creates a gray area at our retail locations and leaves us with a menu of unappealing options. We either have to block off the hoses that pump E15, which confuses customers into thinking our facilities are broken, or sell E15 as a flex fuel, which limits the market for the fuel and isn’t explicitly regulated by the EPA. All of those options obviously are problematic and discourage some retailers from offering the fuel altogether simply to avoid having to deal with the hassle of making those costly adjustments in the summer. Having an obscure statute from 1990 preclude retailers from offering such an outstanding product, especially considering E15 actually has a lower RVP profile than E10, seems counterproductive and, frankly, silly.
Furthermore, these RVP restrictions hurt consumers. At Sheetz, we take pride in offering our consumers many fueling options, which includes a cleaner burning, high-performance fuel that is better for the environment and saves consumers money. E15 clearly provides a great value to consumers and these restrictions confuse them or prevent them from accessing E15 altogether. When customers go to the pump any other time of the year, they see E15 at the dispenser, but when they go to fill up their cars in the summer, they see it presented as a flex fuel. It is understandably confusing for anyone who is not intimately familiar with these technical restrictions. In cases where retailers stop carrying the fuel entirely during the RVP season, consumers show up to the pump expecting to fill their cars with E15 as they’ve done all year, only to find it’s no longer offered. In the worst case scenario, when retailers choose not to offer E15 at all because of the summer hassle and financial constraints of complying with the RVP regulations, consumers are robbed of another gasoline choice at the pump during the other eight and one half months of the year without even knowing it.
Retailers and consumers are both hurt by E15 not being available for use with 2001 and newer vehicles during the busy summer driving season. All because of an archaic technicality from 26 years ago. Now that the summer driving season is coming to a close and Congress is reconvening, we urge you to reach out to your elected officials and ask them to remove this unnecessary barrier. It constricts retailer freedom and inhibits consumer choice. We know that consumers are more environmentally conscious than ever before and, at the end of the day, we want to help them make a positive impact on the environment by filling up with E15, and offer them savings at the pump. Tell your officials to vote yes on bills S. 1239 and H.R. 1736, which would extend the RVP waiver to ethanol blends above 10 percent so we can continue to expand the available fuel options for consumers across the country.
Read the original story here : It's Time To Address RVP
By Jessie Stolark
Aug 9, 2016
A quiet revolution is taking place across the fruited plain. The total amount of U.S. land under production by American farmers is down-- not just over the last 50 or 100 years, but also over the last decade according to the U.S. Department of Agriculture. Despite that trend, the production of crops for food, feedstock, and bioenergy continues to rise. Yet a misleading campaign waged by the oil industry has many believing renewable bioenergy is leading to a massive destruction of wild prairies as farmers put more land under the plow.
Given the tremendous threat posed by climate change, it is vital that we set the record straight and unite behind solutions like renewable biofuels, including ethanol, that have been proven to reduce greenhouse emissions in the near- and long-term.
What the oil industry fails to mention is that, between 1980 and 2011, the amount of land needed to grow a bushel of corn shrank by 30 percent, the need for irrigation fell by 53 percent, and energy consumption dropped by 44 percent. Produced alongside each gallon of biofuels are co-products, including high-protein animal feed and corn oil. Meanwhile, fossil fuel companies are using more energy- and water-intensive ways to extract oil from tar sands and deep rock by pumping millions of gallons of fresh water, sand and chemicals to "frack" the rock. Midwestern farmland is also being purchase to strip the land for "frack sand," which destroys prime agricultural acres -- for good.
From a climate perspective, there is simply no question that biofuels mantain a clear advantage over oil. The best available science shows that biofuels hold enormous potential to immediately reduce greenhouse gas emissions. Analysis from the Department of Energy's Argonne National Laboratory has shown that average lifecycle emissions from corn-based ethanol are 34 percent lower than those gasoline, even when taking potential land use changes into account. Some argue that we should be doubling down on vehicle electrification instead, but it's not an either or proposition. Liquid fuels will be needed for a while yet --- for the existing stock of cars, as well as for trucking, shipping and aviation. These fuels should be low-carbon and sourced from renewable sources : the best option is bioenergy feedstocks.
Looking into the future, according to the Department of Energy's recent 2016 Bilion Ton Report, most bioenergy feedstocks will come from inedible plant material such as agricultural residues and from energy crops such as perennial grasses, short-rotation trees, and algae. Biofuels derived from these sources can yield emission reductions of 90 percent of more when compared to gasoline. Recent research has shown that energy crops can also help reduce erosion and runoff, as well as store additional carbon in the soils.
But the development of these advanced fuels and feedstocks depends on the continued expansion of the broader biofuels supply chain, as well as the research and development efforts of current biofuel producers. A pull-back on the policies that support their development would be devastating.
Oil's latest argument against biofuels is over land use. One recent study from researchers at the University of Wisconsin-Madison finds that land is being converted to biomass crop production at alarming rates, and places the blame squarely on biofuel policies. Researchers at Argonne National Laboratory, Oak Ridge National Laboratory and the University of Illinois at Chicago raised questions on these findings, stating that there was "no indication that type of transition has occured on a large scale." When examining dirvers of land use change, dietary shifts and other demands, including loss of farmland to urban development, must also be weighed.
It is true that biofuels production has grown tremendously while acreage devoted to conversation programs for farmland has dropped precipitously. However, this is not due to biofuels production, but instead to a dramatic drop in federal support for conservation programs. For example, acreage eligible for the USDA's Conservation Reserve Program (CRP) fell from 37 million acres in 2007, to 24 million acres in 2016. Lack of acres does not translate to lack of farmer interest; in the most recent CRP enrollment period, demand for the program outstripped availability by 1.4 million acres.
In the next year, Congress will likely debate the 2018 Farm Bill, and strong support for conservation programs should be prioritized alongside continued support for the Renewable Fuel Standard (RFS), which ensures increased production of low-carbon biofuels from a variety of sustainable feedstock sources. Already, the RFS has been an effective tool in spurring the development of biofuels sourced from crop wastes.
Through the ingenuity of American farmers and researchers, biofuels and environmental protection can go hand-in-hand- but only with strong Congressional support for sustainable biofuels production, not capitulation to the oil industry.
Read the original story here: In Pitting Biofuels Against The Environment, Only Clear Winner Is Oil
By William Morris
Aug 15, 2016
CLAREMONT - The Ethanol industry looks very different from what it was when Al-Corn Clean Fuels first opened its doors.
The Claremont ethanol cooperative celebrated its 20th anniversary Aug 2 with a banquet for shareholders, industry partners and government respresentatives, as well as promotions for E85 ethanol fuel at several Owatonna gas stations.
Al-Cron CEO Randy Doyal said the night was an occasion to reflect on where the cooperative has been and the partnerships it has forged.
"We had displays of all the organizations we work with like American Lung (Association), Minnesota Corn Growers, Renewable Fuels Association, Minnesota Bio-Fuels Association and Renewable Products Marketing Group," he said.
Speakers included Randy Schwake, a Claremont banker involved in the formation of Al-Corn; former Minnesota House Speaker Steve Sviggum; Doyal; Pat Buckwalter of the Al-Corn board; and keynote speaker Bob Dineen, President and CEO of Renewable Fuels Association.
Doyal, who serves as chair of the RFA board, said Al-Corn and the industry as a whole are in the midst of retooling to meet future demand and market conditions.
"The next 20 years will see more ethanol use around the world as other countries start to address their air issues," he said. "Out industry will consolidate. We are positioning our company to survive and to remain more in control of our own destiny."
A big part of that is a planned $146 million expansion announced last year, which Doyal said currently is in the process of acquiring permits to begin construction later this year. The expansion will allow for greater economies of scale and let the cooperative better support its member farmers.
"We want to make sure our farmer owners continue to get the value of processing," he said. "This is too important for our rural communities. It is too important for our state and our environment."
Doyal said the industry is keeping watch on policy developments at the federal level, and in particular the Renewable Fuel Standard that mandates increased level of renewable fuels such as ethanol, which both leading presidential candidates, Hillary Clinton and Donald Trump, have said they plan to maintain or increase. And he said that the future looks bright for both Al-Corn and ethanol producers in general.
"Our industry continues to improve," he said. "Our core values at Al-Corn are collaboration and constant improvement. Our history really shows that."
Read the original story here : Al-Corn Celebrates 20 Years, Looks To Future
August 12, 2016
America’s farmers are poised to harvest a record corn crop this fall and achieve the highest yield per acre in U.S. history, according to U.S. Department of Agriculture (USDA) estimates released today. Meanwhile, the U.S. ethanol industry is on pace to produce a record amount of clean-burning renewable fuel, according to Department of Energy (DOE) projections released Tuesday. The Renewable Fuels Association (RFA) said the government reports highlight the importance of getting the Renewable Fuel Standard (RFS) back on its statutory track in 2017.
Today’s USDA report projects the 2016 corn crop at 15.15 billion bushels, with a record average yield of 175.1 bushels per acre.
“U.S. farmers have again risen to the challenge to meet all demands for feed, food and fuel,” said Bob Dinneen, president and CEO of the RFA. “They should be congratulated for producing what is primed to be the third record-breaking crop in just the last four years. The innovation, technology adoption, and productivity we’ve seen in the corn sector over the past decade has been nothing short of astounding.”
Corn ending stocks for the 2016/17 marketing year are projected at 2.4 billion bushels — the highest in 29 years. Meanwhile, prices are expected to average just $3.15 per bushel, the lowest in 10 years. Global grain supply is also set to establish a new record and grain stocks are likely to hit historic highs. U.S. ethanol is expected to consume just 2.9 percent of world grain supply on a net basis. Dinneen said today’s USDA estimates “snuff out the last flickering embers of the outrageous food vs. fuel debate.”
As harvest ramps up in fields across the country, corn demand from the ethanol sector is ramping up as well. DOE projects 2016 ethanol production will average 980,000 barrels per day — or 15.1 billion gallons. The agency also is projecting record ethanol consumption of 14.3 billion gallons. “This is shaping up to be an historic year,” Dinneen said. “Just a decade ago, visionary leaders in the corn and ethanol industries established a goal to produce 15 billion bushels of corn and 15 billion gallons of ethanol by 2015. Ten years later, our nation’s farmers and ethanol producers have made that bold vision into a reality.”
However, Dinneen warned, the Environmental Protection Agency’s (EPA) disappointing proposal for 2017 Renewable Fuel Standard (RFS) volumes is exacerbating the predicted drop in corn prices and farm income this year. EPA’s proposal to needlessly reduce the 2017 RFS requirement for “renewable fuel” from 15.0 billion gallons to 14.8 billion gallons reduces demand for corn at a time when corn stocks are rising and prices are slumping to levels below the cost of production.
“This is not the time to undermine demand for corn and tie the hands of the American farmer. Farmers and ethanol producers made investments and business decisions based on the 2007 law that expanded the RFS, and they expected EPA to follow Congress’ intent in implementing the program,” Dinneen said. “EPA’s proposal is limiting market opportunities for U.S. farmers at a time when the agricultural economy needs a boost. We again urge EPA and the Administration to finalize a rule that truly gets the RFS back on track and supports rural America.”
Read the original story: Record Crop, Record Ethanol Production Underscore Importance of Getting RFS Back on Track
August 9, 2016
By Joanna Schroeder
The ethanol industry packed the room for the opening night reception of the 20th annual American Coalition for Ethanol (ACE) Conference in Minneapolis, Minnesota where Minnesota Bio-Fuels Association Executive Director Timothy Rudnicki talked about the booming ethanol industry in his state.
“Within the last year and a half, we’ve seen more E15 stations become available, and that means more fuel choice for consumers,” said Rudnicki. “What we’ve found for the most part is when consumers have a choice between a clean, green renewable fuel versus petroleum they will take the renewable fuel.”
Rudnicki says because education is so important, they have developed new communications tools, such as a biofuel station locator app. “We’ve also implemented some direct consumer campaigns using social media tools to alert consumers to where retailers are having special events to promote E15 and higher blends, but more importantly, to give consumers the confidence in knowing what they’re buying is good for their engines, the environment, and the economy – and for the most part, ten cents less per gallon on E15 compared to regular,” said Rudnicki.
Read the original story and listen to the interview: #ACE2016 Hears about Booming Minnesota #Ethanol Industry
Aug 8, 2016
By Kelly Pleskot
Photo credit : Nissan Motor
Just in time for the Olympic Games, Nissan is testing a special type of fuel-cell vehicle on the streets of Brazil. The model, based off the NV200 van, runs completely off bio-ethanol and offers a driving range of more than 372 miles.
It doesn't work like other fuel cells which have a built-in tank for storing hydrogen. Instead, the Nissan e-Bio Fuel Cell uses bio-ethanol pumped into the vehicle to generate electricity through a solid-oxide fuel cell.
The model generates electricity by transforming bio-ethanol into hydrogen through an electrochemical reaction from a reformer and atmospheric oxygen. The electricity generated in this process powers the vehicle. Reforming ethanol into hydrogen produces some carbon dioxide, although the same is true for the way other fuel cells works. But Nissan says the process of growing plants used to produce the bio-ethanol cancels out the effects of the emissions. Bio-ethanol, mainly sourced from sugarcane and corn, is widely available in North and South America, which Nissan says is another major benefit to this fuel source.
"The e-Bio Fuel-Cell offers eco-friendly transportation and creates opportunities for regional energy production...all the while supporting the existing infrastructure," Nissan president and CEO Carlos Ghosn said in a statement.
The Nissan e-Bio Fuel-Cell offers a 30-liter tank for ethanol and a 24-kilowatt-hour battery. Given the fact that it's just a prototype for now, its specifications are subject to change should Nissan bring it to market. Nissan says the e-Bio Fuel-Cell is the first vehicle in the world to use a solid-oxide fuel cell. Solid-oxide fuel cells use a solid, ceramic electrolyte rather than a liquid electrolyte, and Nissan says it's highly efficient.
Read the original story here : Nissan Debuts Fuel-Cell Prototype Powered By Bio-Ethanol
Aug 3, 2016
By Erin Voegele
On Aug. 1, Bob Dinneen, president and CEO of the Renewable Fuels Association, asked the U.S. EPA and U.S. Commodity Futures Trading Commission to investigate potential manipulation in the renewable identification number (RIN) market.
In a letter issued to CFTC Chairman Timothy Massad and EPA Administrator Gina McCarthy, Dineen expressed concern over recent irregular activity and volativity in the market for conventional RIN credits under the Renewable Fuel Standard (RFS) and encouraged the two agencies to "closely examine recent events in the RIN market to determine whether certain parties may be exerting undue influence on prices or otherwise engaging in manipulative practices." Earlier this year, the CFTC and EPA entered a memorandum of understanding to cooperate on coordinate on topics related to the implmentation of the RFS and RIN market.
Dineen stressed that "at a time when EPA is reviewing public comments on its proposed rule for the 2017 RFS volume requirements and considerting whether changes are warranted, it is especially important that the agency and affected stakeholders have a proper understanding of what is truly driving RIN prices."
In his letter Dinneen recalls that RIN prices artifically spiked to record levels in July 2013, providing opponents to the RFS with "politically expedient fodder for their campaign to repeal or reform the program." Dinneen said the ethanol industry is concerned that opponents of the RFS are similarly using the recent RIN spike to bolster efforts to change or eliminate the program.
According to Dinneen, RIN prices have risen nearly 30 percent since the EPA released its proposed 2017 RFS rule on May 18. RIN prices averged 74 cents on May 17, increasing to 79 cents on May 18, but falling to 76 cents by May 25. "The initial RIN price response suggested that the 2017 volumes proposed by EPA generally matched market expectations," wrote Dinneen in the letter. "The RIN market's lack of response to the proposal also indicated that participants broadly understood that the proposed volume requirements would not result in a drawdown of RIN stocks."
RIN prices, however, began rising rapidly in early June, hitting 98 cents on July 13. Dinneen notes that while several theories have been advanced, the real reason behind the increase remains unclear. He also stressed that basic market fundamentals suggest RIN prices should have remained stable or dropped following the release of the 2017 RFS proposed rule. He cites record 2015 ethanol production, the fact that RIN generation for 2016 is expected to outpace 2016 requirements, and strong evidence that 2017 requirements can be met without drawing down RIN inventories.
"Given the evidence of ample RIN supplies, the recent spike in RIN prices appears contributed and driven by something other than basic supply-demand fundamentals," Dinneen wrote. "Indeed, the spike raises renewed questions about the potential manipulation of the market by entities who may believe the specter of higher RIN prices supports their political efforts to repeal or reform the RFS."
Read the original story here: RFA asks EPA, CFTC To examine possible manipulation of RIN market