In the News

Ethanol Producer Magazine

January 8, 2017

By Syngenta

Syngenta has announced an agreement with CHS Inc. to use Enogen corn enzyme technology at its 130-million-gallon ethanol plant in Rochelle, Illinois. CHS is a premier ethanol producer, marketer and trader and one of the nation’s largest suppliers of ethanol-enhanced gasoline.

Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and can help an ethanol plant significantly reduce the viscosity of its corn mash, improving plant performance. And, numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids1.

Enogen corn will provide the CHS Rochelle facility with an industry-leading enzyme for enhanced ethanol production while also supporting local growers and the community. Several million dollars in premiums are expected to be paid annually to growers raising Enogen corn, locally, for the CHS plant in Rochelle.

“CHS is focused on helping its farmer-owners grow,” said Mike Van Houten, CHS Rochelle facility manager. “The Enogen program provides benefits for our plant, but is also a big win for our local community with the premium to be paid on every bushel of Enogen corn brought to us.”

CHS ethanol plants manufacture the alcohol-based renewable fuel via an advanced fermenting and distilling process that efficiently converts corn into simple sugars. The resulting ethanol product is primarily used as a fuel that is commonly blended with gasoline to increase octane and improve emissions quality. The Rochelle plant is an 81-acre, dry mill corn-based operation and was acquired by CHS in June 2014.

“The CHS Rochelle facility is a large, sophisticated ethanol biorefinery,” said Glen Edwards, Enogen account manager for Syngenta. “We are excited to be working with the CHS team in Rochelle to help the facility there operate even more smoothly and efficiently. We are proud to be partnering with CHS help keep enzyme dollars local and invest in the local community. Syngenta is committed to the success of the ethanol industry through helping plants operate more efficiently and growers serve as enzyme suppliers.”

Read the original article: CHS to Use Enogen Corn at Illinois Ethanol Plant

Renewable Fuels Association

January 5, 2018

By Ann Lewis

U.S. ethanol exports totaled 107.2 million gallons (mg) in November, up 14% from October shipments, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). Despite the imposition of a tariff rate quota and 20% tariff in September, Brazil was the leading destination for U.S. ethanol exports for the first time in six months, receiving 28.1 mg. November also saw a small volume of denatured ethanol exported to China, which has not imported any U.S. fuel ethanol in the prior 10 months. Canada scaled back its imports of U.S. product to 24.2 mg, a 29% reduction from October. Exports to India perked up at 15.5 mg, a 17% increase, while shipments to the Philippines more than doubled to 9.9 mg. These four countries accounted for nearly three-fourths of all U.S. ethanol shipments in November. Exports to all destinations for the first eleven months of 2017 stood at 1.19 billion gallons, indicating a record annualized export volume of 1.30 billion gallons.

November exports of undenatured fuel ethanol rebounded by 23% to 52.8 mg, a four-month high. Brazil increased purchases by 117% to 28.1 mg, taking over half of U.S. undenatured shipments, while the Philippines imported 6.5 mg, up 41%. Meanwhile India cut its imports in half with 6.4 mg of undenatured fuel ethanol entering the country. Switzerland (3.2 mg) and Jamaica (2.8 mg) rounded out the top five largest markets for undenatured fuel product.

U.S. exports of denatured fuel ethanol decreased by 10% from October levels to 42.0 mg. Canada again took the lead with 23.3 mg, accounting for 55% of denatured fuel ethanol exports. The remaining denatured shipments were distributed to India (5.0 mg), the Philippines (3.4 mg), Colombia (3.3 mg), South Korea (3.1 mg), China (2.4 mg), and Mexico (1.5 mg).

Overseas sales of undenatured ethanol for non-fuel, non-beverage purposes increased by 41% to 3.2 mg, with Saudi Arabia receiving 2.7 mg, or 86% of the exports. November exports of denatured ethanol for non-fuel, non-beverage purposes jumped a whopping 407% to a 68-month high (running back to March 2012). The U.S. shipped 4.1 mg of denatured non-fuel product to both Nigeria and India, accounting for the bulk of overseas sales.

For the seventh straight month this year, the United States recorded meaningful fuel ethanol import volumes. The 20.7 mg of undenatured ethanol shipped in from Brazil in November is the largest volume to enter the country in 26 months. Monthly imports have only breached 20 mg four times over the past 50 months. Year-to-date fuel ethanol imports totaled 76.5 mg, a 127% increase over the same period last year. Annualized import volumes are estimated at 83.5 mg—roughly the volume imported in 2014.

 Exports of dried distillers grains with solubles (DDGS)—the animal feed co-product generated by dry mill ethanol plants—contracted 15% in November to a six-month low of 875,302 metric tons (mt), shipped to 35 countries. Mexico cut its purchases from October, although it still remained the lead destination with 144,415 mt in DDGS exports (16% of market share). Export expansion in Vietnam showed signs of slowing with a 2% increase at 103,834 mt (12% of the DDGS exports for the month). Other leading destinations included South Korea (86,983 mt, or 10%), Indonesia (76,200 mt, or 9%), and Thailand (73,917 mt, or 8%). Turkey cut its imports by half to 59,397 mt—its lowest purchase of U.S. DDGS in thirteen months. Total year-to-date DDGS exports to all countries stood at 10.1 mmt through November, indicating an annualized total of 11.03 mmt.

Read the original story: U.S. Ethanol Exports Swell in November, as Brazil is Top Destination and China Returns to Market

World Grain

January 1, 2018

By Holly Demaree

Representatives from the U.S. Grains Council (USGC) recently traveled to Indonesia and Thailand to visit with ministry and industry officials and gain a better understanding of the opportunities for and challenges to expanded ethanol use in both markets.

“Indonesia is forecast to be the sixth largest gasoline market by 2022,” said Brian Healy, USGC manager of ethanol export market development. “Additionally, Indonesia has a goal for renewables to represent 23% of their energy mix by 2025 and to reduce greenhouse gas emissions (GHG) by 29% by 2030. Ethanol has a great opportunity to help Indonesia meet these ambitious goals.”

Indonesia instituted a national ethanol policy in 2006, but the mandate has largely gone unmet. The USGC engaged with Indonesia ministry officials in December to highlight the role of policy and trade in helping to develop a consistent supply chain for biofuels as well as capture the societal benefits of biofuels with regard to air quality and GHG emission reductions.

According to a life cycle analysis study released by the U.S. Department of Agriculture (USDA) in January 2017, GHG emissions associated with producing corn-based ethanol in the United States are 43%  lower than gasoline on an energy equivalent basis. Additionally, U.S. corn-based ethanol is expected to help reduce emissions by more than 50% domestically in the next five years.

The mission also highlighted the competitiveness of U.S. ethanol as an octane enhancer, compared to MTBE (methyl tertiary-butyl ether), aromatics or other sources.

Following meetings in Jakarta, the USGC traveled to Thailand to assess opportunities for biofuels in that market. Thailand has an effective national blend rate of 12%, utilizing domestically-sourced sugarcane and cassava-based ethanol. Domestic ethanol production is expected to total nearly 360 million gallons in 2017.

“Thailand has successfully differentiated ethanol products to consumers at the pump by using price incentives across grades of fuel and incentivizing the use of flexible fuel vehicles,” Healy said. “Thailand also produces flex fuel vehicles for its own domestic market and for export to regional markets. As a result, Thailand is a good collaborator to discuss engine technology and biofuels policy with regional partners.”

The partnership opportunities in Thailand and Indonesia are part of the USGC’s work to engage with government and industries around the world to assist in developing biofuels policies with a role for ethanol trade.

Read the original article: USGC Explores Potential for Ethanol Use in Indonesia, Thailand

Iowa Renewable Fuels Association

December 28, 2017

Press Release

JOHNSTON, IA – Iowa’s 43 ethanol plants had another record breaking year, producing 4.2 billion gallons in 2017. The slight uptick in production from 4.1 billion gallons in 2016 is largely due to several plant expansions and increased demand of exports and higher blends like E15.

“Iowa continues to lead the country and the world in ethanol production and efficiency,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “Several plant expansions just finished or will finish during the 1st quarter of 2018, so production could jump again next year. That makes expanding export markets abroad and breaking down unnecessary barriers to E15 here at home top priorities.”

IRFA’s top state policy priority for 2018 is securing funding for the Iowa Renewable Fuels Infrastructure Program (RFIP) to ensure more retailers have the equipment necessary to offer higher blends of ethanol now and in the future. However, coupled with RFIP funding, action at the federal level would create the best environment for retailers to move forward with E15.

“The EPA needs to provide the same regulatory treatment for E15 as all other ethanol blends,” added Shaw.  “That step alone would draw many more retailers into offering the option of E15 to their customers. Also, as the world’s cheapest source of fuel octane, we’ll be working to continue to build on the record exports of 2017.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing 4 billion gallons annually – including nearly 55 million gallons of annual cellulosic ethanol production capacity – and 12 biodiesel facilities with the capacity to produce over 380 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

The Hill

December 24, 2017

By

A group of oil state senators is asking biofuel and agricultural producers to accept changes to the renewable fuel standard (RFS) that are intended to help a small group of refiners comply with the program. The bipartisan RFS program has been U.S. law since 2005, requiring production and use of annually increasing volumes of biofuel in the U.S. transportation market.

The refiners want to lower the price of renewable identification numbers, or RINs, which are the credits they must accumulate to prove compliance with the program — every gallon of biofuel that is blended into transportation fuel generates one of these RIN credits.

It is important to note that past changes to the RFS program — made at the request of those same refiners — have done nothing at all to change the price of the compliance credits. One compliance strategy, though, has proven successful. Refiners that made modest investments in blending capacity, or in advanced and cellulosic biofuel technologies, have been able to comply with the program by generating their own RIN credits.

Congress has tried to give relief to small refiners that are unable to blend biofuels. Most recently, the Senate Appropriations Subcommittee for Interior, Environment and Related Agencies firmly directed the U.S. Environmental Protection Agency (EPA) to grant small refiners exemptions from the program to ensure they “remain both competitive and profitable.” The agency has followed that direction and eased requirements for these hardship exemptions.

But EPA has also recognized — and categorically stated in the most recent RFS rule — that refiners are not harmed by complying with the program. Independent refiners recoup their compliance costs when they price their product for blenders; fuel blenders, in turn, recover their cost by blending biofuels and acquiring RIN credits. The refiners’ protests about high RIN costs are, in the agency’s understated opinion, unsupported by evidence and “unconvincing.”

Fortunately, EPA seems to have learned important lessons from when refiners cried wolf over the so-called blend wall. In 2013, independent refiners activated their champions in state governments, Congress and the White House to demand limits on ethanol blending because of high RIN prices.

In response, EPA delayed issuing RFS rules for two years as it sorted out the claims. The agency then used its authority to waive the biofuel blending requirements for those years and to create staggeringly large banks of surplus compliance credits. Those reserve RIN banks come from actual gallons of advanced biofuels produced and blended into the U.S. fuel supply — even though the agency’s waiver authority was based on a claim that there was an “inadequate supply” of the fuel.

The number of reserve advanced biofuel RIN credits that refiners have accumulated and rolled forward from year to year now exceeds the number that they can legally use to meet the 2018 biofuel blending requirements. And yet that RIN bank has no impact on the price of the credits.

Many refiners have made smart business decisions and investments in biofuel production and blending capacity to capture the value of fuel diversification and the RFS program. For example, Flint Hills Resources has acquired several ethanol biorefineries and worked with biotech company Edeniq to launch new technology to produce cellulosic ethanol in those same facilities. The RFS was designed to support that type of innovation and it has been a success. Although it’s legal for refiners to comply with the program simply by purchasing RIN credits from others who innovate (and blend biofuels beyond the compliance targets), it isn’t necessarily a good business decision.

The RFS was designed to encourage biofuel blending. Biotechnology and biorefinery companies have invested hundreds of millions of dollars in advanced biofuel R&D and innovation. A new RIN credit price control scheme to reward such recalcitrance on the part of a few refiners will only disrupt the market and further derail new technology and investment in advanced and cellulosic fuels. Moreover, it’s likely to hurt rather than help small refiners.

Our recommendation for a win-win solution for oil refiners and the biofuel industry is for more oil to should invest in blending infrastructure and advanced and cellulosic biofuel production capacity to capture RIN credit values. The refiners can diversify their product offering and improve their competitiveness by working to meet the goals of the RFS, rather than digging their heels in against it. The benefit of improved energy security and market competition would also provide a win for U.S. motor fuel consumers.

James C. Greenwood is president and CEO of the Biotechnology Innovation Organization. He represented Pennsylvania’s 8th District in the U.S. House of Representatives from 1993 to 2005.

Read the original article: How Refiners Can Lower the High Price of Renewable Fuel Credits: Invest

Ethanol Producer Magazine

December 14, 2017

By Tim Albrecht

Environment and Climate Change Canada released the preliminary Clean Fuel Standard regulatory framework Dec. 13, according to a press release from non-profit Renewable Industries Canada.

The goal of the proposed framework is to achieve 30 million metric tons (33.1 million tons) in GHG emissions annually by 2030, which contributes to the country’s effort to achieve an overall GHG mitigation target of 30 percent reduction below 2005 levels.

The clean fuel standard will establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels that are used in transportation, industry and buildings. This performance-based approach will incent innovation, development and use of a broad range of low carbon fuels, energy sources and technologies.

“Our association supports the government of Canada’s objectives and is encouraged that, in the short term, the CGS’s intensity based targets will be backstopped by existing biofuel mandates. This combination of policy levers will help ensure that heightened demand for biofuels is met by increased domestic supply,” said RICanada Chairman Jim Grey.

Scott Lewis, vice chair of RICanada, and executive vice president of biofuel producer BIOX Corp., said, “The domestic biofuel industry has grown to the point where it is now generating gross economic benefits in excess of $3.5 billion to the Canadian economy each year. This announcement will also bring to Canada a credit trading market for biofuels that is essential in our ability to continue to bring low carbon fuels to consumers at competitive prices, while allowing for some flexibility in compliance.”

The framework builds on existing policy that mandates the blending of 5 percent ethanol and 2 percent biodiesel into Canada’s transportation fuels. The 2010 mandates have reduced GHG emissions by more than 4 million tons per year, which is the equivalent of removing 1 million cars from Canada’s roads each year.

Greenfield Global, a producer of corn-based bulk industrial alcohol, packaged alcohol and fuel ethanol, President and CEO Howard Field welcomed the next stage of the process, saying, “By harnessing the benefits of biofuels within a clean fuel standard, Canada can make even stronger inroads in tackling climate change. We look forward to continued work with the Government on this ambitious policy.”              

A copy of the Clean Fuel Standard regulatory framework is available here.   

Read the original article: Canada Releases Clean Fuel Standard Framework

Ethanol Producer Magazine

December 19, 2017

By Tim Albrecht

Japan is likely to finalize a determination in January 2018 that will allow the use of U.S. ethanol in the production of bio-ethyl tert-butyl ether. The determination comes after several committee meetings to assess how ethanol would meet Japan’s greenhouse gas emission’s requirement of 50 percent greenhouse gas (GHG) reduction.

The final decision will be followed by a period of public comment, after which implementation of the new regulation can occur as early as April of next year.

Japan’s Ministry of Trade, Economy and Industry began the assessment of the country’s biofuels policy from 2018 to 2022. METI formed an expert committee to discuss the future of biofuel introduction in Japan in March 2016. In 2017, the committee focused on GHG emission values of Brazilian and U.S. corn ethanol and gasoline.

In November, the committee discussed what methods can be put in place to ensure the sustainability of ethanol. For U.S. ethanol, the committee proposed the use of International Sustainability and Certification certificates and renewable identification numbers (RINs) to ensure traceability. The committee noted that the RIN can be used to trace ethanol back to ethanol plants.

Read the original article: Japan to Accept US Corn Ethanol

Renewable Fuels Association

December 19, 2017

By Emily Druckman

WASHINGTON – Ten years ago today, Dec. 19, President George W. Bush signed into law the Energy Independence and Security Act, greatly expanding the scope and impact of the Renewable Fuel Standard (RFS). In the decade since passage, significant progress has been made towards greater energy security, cleaner air and boosting local economies, according to a new analysis by the Renewable Fuels Association, “The RFS2: Then and Now.”

The RFS requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel, culminating with 36 billion gallons in 2022.

“A decade after the RFS2 was adopted, tremendous progress has been made toward achieving the objectives of this landmark policy,” according to the analysis, which compares key data points from 2007 to 2017.

Among the highlights:

-The number of operational U.S. ethanol plants has nearly doubled from 110 in 2007 to 211 in 2017, a 92% increase, while U.S. ethanol production has grown 143% from 6.5 billion gallons in 2007 to 15.8 billion gallons in 2017;

-U.S. ethanol industry jobs grew 42% from 238,541 in 2007 to 339,176, with the value of industry output increasing 74% from $17.8 billion in 2007 to $31 billion in 2017;

-The production of advanced and cellulosic biofuel increased 469% from 490 million gallons in 2007 to 2.79 billion gallons in 2017;

-U.S. corn production grew 12% from 13 billion bushels in 2007 to 14.6 billion bushels in 2017, while corn acres planted fell 3% from 93.5 million acres in 2007 to 90.4 million acres in 2007 and average corn yields increased 16% from 150 bushels per acre in 2007 to 175.4 bushels per acre in 2017;

-The number of retail stations offering flex fuels like E85 increased 238% from 1,208 in 2007 to 4,077 in 2017, while the number of flex fuel vehicles on the road grew from 6.7 million in 2007 to 24.5 million in 2017, a 266% increase; and

-The greenhouse gas emissions avoided from using ethanol has increased 291% from 12.7 million tons CO2e in 2007 to 49.6 million tons CO2e in 2017.

Meanwhile, the doomsday outcomes threatened by RFS opponents have simply not materialized.

-U.S. cropland area fell 6% from 402 million acres in 2007 to 376 million acres in 2017, while U.S. grassland area has increased 5% from 1,296 thousand square miles to 1,359 thousand square miles.

-The deforestation rate in the Amazon fell 43% from 4,498 square miles in 2007 to 2,558 square miles in 2017;

-The greenhouse gas emissions from agricultural soil management, urea fertilization, and liming fell 7% from 278.7 million metric tons CO2e in 2007 to 260.1 million metric tons CO2e in 2017;

-Overall food inflation was 4% in 2007, but 1% in 2017;

-Prices for red meat, poultry, fish, cereals and bakery items, and dairy were unchanged in 2017 from the previous year, as compared to a 3.8% increase in 2007; and

-World grain supply for coarse grains, wheat, and rice increased 31% to 3.23 billion metric tons in 2017, as compared to 2.46 billion metric tons in 2007.

“By any measure, RFS2 has been a huge success, bringing about greater consumer choice while helping to make the air cleaner, stimulate economic activity and enhance energy security,” said Renewable Fuels Association President and CEO Bob Dinneen. “As this analysis shows, consumers have greatly benefitted from this vital program. These benefits have rippled throughout our economy and we look forward to even greater success of the RFS for years to come.”

The full analysis is available here.

Read the original press release: RFA Analysis Finds ‘Tremendous Progress’ Made Toward Meeting Energy, Environmental, Economic Goals of RFS2