In the News
February 14, 2017
Press Release
Congressional Biofuels Caucus Co-chairs Congressman Collin C. Peterson (D-MN), Congressman Rodney Davis (R-IL), Congresswoman Kristi Noem (R-SD), and Congressman Dave Loebsack (D-IA), led Members of Congress in a bipartisan letter to the Trump Administration about the importance of a strong Renewable Fuel Standard (RFS).
In their letter to President Trump the lawmakers emphasized the economic benefits of the RFS saying, “In 2015 alone, the RFS is directly responsible for creating nearly 86,000 jobs ranging from farms to equipment manufacturers to ethanol production facilities.” The letter encourages the administration to create certainty in the market by continuing its commitment to the RFS.
“As a co-chair of the Congressional Biofuels Caucus, it is important to remind the new Administration of its commitment to the Renewable Fuel Standard and how it creates jobs and strengthens rural economies,” Peterson said. “I am pleased with the bipartisan support for this letter and will continue to fight for a robust Renewable Fuel Standard in the years to come.”
“A strong RFS is extremely important to our nation's economy,” Davis said. “The RFS is crucial to supporting jobs across rural America and in other parts of our country. I look forward to working with the new administration to ensure we maintain a strong RFS.”
“With advances in technology, we are growing more on fewer acres and using that efficiency to diversify the market,” Noem said. “Through the RFS, we can make sure American-grown fuels have a place in our energy supply and give farmers and ranchers the opportunity to contribute to greater energy independence.”
“The RFS is more than just a number. It represents the hard work Iowa’s farmers and rural communities put into creating a fuel source for the future that also decreases our dependence on foreign oil.” Loebsack said. “As the co-chair of the Congressional Biofuels Caucus, I am proud to help lead the fight for a strong RFS and have worked to highlight its importance to Iowa. I look forward to working with my colleagues, the EPA, and new administration to ensure the RFS remains strong for our country, for our economy, and for Iowa.”
Letter’s language:
Dear President Trump:
As members of the Congressional Biofuels Caucus, we write you today to urge your administration to continue to support a strong Renewable Fuel Standard (RFS). This is an important policy that creates jobs in rural America, boosts economic growth, and lowers gas prices nationwide.
As you know, communities in rural America depend on agriculture and manufacturing jobs for employment. The RFS supports 400,000 of these jobs across the nation. In 2015 alone, the RFS is directly responsible for creating nearly 86,000 jobs ranging from farms to equipment manufactures to ethanol production facilities. There is no doubt that rural Americans and their families benefit from the economic expansion and jobs created by the RFS.
In 2015, the RFS added $44 billion in economic activity. This is felt throughout greater America as farmers produce larger harvests to meet fuel demand. In turn, equipment manufacturers produce more efficient farm machinery, and truckers are relied on to move products. Engineers at ethanol and biodiesel facilities across the nation produce the most cost-effective biofuels in the world, lowering gas prices for all Americans and bringing high-paying jobs to rural areas.
In fact, biofuels play a major role in the reduction of gas prices. The biofuels production capabilities of our nation are extraordinarily efficient. Studies show that ethanol can reduce gas prices by as much as $1.00 per gallon. With ethanol blended in 97% of gasoline, it is helping consumers save money virtually every time they fill up. A strong and continued RFS can reduce gas prices even further.
We encourage your administration to engage with the Congressional Biofuels Caucus to generate strategies that ensure the RFS remains strong. Continued commitments to this biofuels policy will create certainty and lead to additional jobs in rural America, enhanced economic growth, and help keep gas prices low. We look forward to working with you in the years that follow.
Read the original release: Peterson, Davis, Noem, and Loebsack Lead Call for Strong RFS
February 16, 2017
By BBI International
D3MAX has announced the completion and shipment of its pilot plant employing the patented D3MAX cellulosic ethanol technology. The pilot facility will be installed at ACE Ethanol LLC, in Stanley, Wisconsin, in late February. Installation is expected to be complete by mid-March with startup and testing at the facility taking place over the ensuing two months.
“We are very excited to take this next step in developing the D3MAX technology,” says Mark Yancey, chief technology officer for D3MAX. “ACE (Ethanol LLC) has been an excellent partner in the lead up to the installation and running of the pilot facility.”
“We see this type of bolt-on technology as a clear path forward for cellulosic ethanol,” says Neal Kemmet, president and general manager at ACE Ethanol. “Of course, much will be determined during the next phase of pilot testing. However, if successful, we feel the D3MAX process will be key in allowing current producers to lead the way for the next generation of ethanol production.”
Operation of the skid-mounted unit, constructed by Ohio-based AdvanceBio Systems, will help narrow the operating parameter such as pretreatment time, temperature, pH, etc. Upon successful completion of pilot testing and data collection, D3MAX intends to complete the full detailed commercial design and license the technology across the United States and Canada.
D3MAX is a technology company formed by BBI International to license its patented cellulosic ethanol technology to dry mill ethanol plants in the US and Canada. The technology converts corn fiber and residual starch in distillers grains to cellulosic ethanol. To learn more about D3MAX visit: www.D3MAXLLC.com.
Read the original story: Ace Ethanol to Install D3MAX Cellulosic Ethanol Pilot Plant
February 14, 2017
US advanced biofuels company has announced that it has entered into a Letter of Intent (LOI) with HCS Holding (HCS) to supply isooctane under a five-year offtake agreement.
HCS is a manufacturer of specialty products and solutions in the hydrocarbons sector, operating under the brands Haltermann Carless, ETS Racing Fuels and EOS. HCS is owned by HIG Capital. Haltermann Carless, one of the oldest companies in the world of chemistry, is expected to be the direct customer with Gevo under the proposed offtake agreement.
The LOI contemplates an offtake agreement that will have two phases. In the first phase, HCS will purchase isooctane produced at Gevo's demonstration hydrocarbons plant located in Silsbee, Texas.
This first phase is expected to commence in 2017 and would continue until completion of Gevo's future, large-scale commercial hydrocarbon plant, which is likely to be built at Gevo's existing isobutanol production facility located in Luverne, Minnesota. Gevo expects revenue in the range of $2-3 million per year from the first phase.
In the second phase, HCS will agree to purchase approximately 300,000 to 400,000 gallons of isooctane per year under a five-year offtake agreement.
Gevo would supply this isooctane from its first large-scale commercial hydrocarbons facility, which is likely to be built at Gevo's existing isobutanol production facility located in Luverne, Minnesota. The LOI establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build out Gevo's existing production facility in Luverne, Minnesota.
It is the intent of Gevo and HCS to establish further offtake arrangements for other products such as Gevo's alcohol-to-jet fuel (ATJ) and isobutanol. HCS is expected to market and distribute Gevo's products globally on a non-exclusive basis.
"Haltermann Carless and HCS will serve as a major and substantial offtaker of Gevo's renewable isooctane from Gevo's demonstration plant and a vital offtaker from Gevo's first commercial hydrocarbon plant. Gevo and HCS agree to evaluate options to make the partnership most impactful and provide maximum credibility for Gevo's next generation technology," said Henrik Krüpper, chief sales officer and member of the HCS Group GmbH's Executive Committee.
"We are very pleased to establish this commercial relationship with HCS Holding, which is world renowned in the industry for the high quality of its performance fuels. We expect that they will be an important customer and partner for Gevo," said Patrick Gruber, Gevo's CEO.
"When we produce ATJ, we also produce other products such as isooctane and isooctene. We believe that a binding offtake agreement with HCS Holding is one more piece of the puzzle to validate our case for expanding the Luverne plant," continued Gruber.
Read the original story: Gevo Signs Letter of Intent with HCS Holding for Commercial Supply of Isooctane
February 14, 2017
Press Release
Ashland, Virginia and Abingdon, Oxfordshire U.K. (February 14, 2017) – Green Biologics, Inc., the U.S. subsidiary of Green Biologics Ltd., a U.K. industrial biotechnology and renewable chemicals company, announced today an exclusive collaboration with Jungbunzlauer Ladenburg GmbH, the German operating unit of Jungbunzlauer Suisse AG in Basel, Switzerland. In February 2017, Jungbunzlauer received its first shipment of 100 percent renewable BioPure™ n-butanol from Green Biologics’ production facility in Little Falls, Minnesota. Jungbunzlauer aims to produce bio-based CITROFOL® BI (tributyl citrate) and bio-based CITROFOL® BII (acetyl tributyl citrate) for its customers with commercial shipments beginning next month.
“Jungbunzlauer is an outstanding collaboration partner for Green Biologics,” said Timothy G. Staub, Global Vice President of Business Development for Green Biologics. “As the global leader in natural ingredients built off its core strengths in citric, lactic and gluconic acids, and xanthan gums, Jungbunzlauer has been committed to sustainability for 150 years. We are delighted to be working exclusively with Jungbunzlauer on the global introduction of bio-based citrate derivatives.”
Green Biologics announced the start-up of its first commercial production facility for renewable n-butanol and acetone in December 2016, with its first bulk export shipment to Jungbunzlauer in mid-January.
“Our focus is to selectively move our renewable n-butanol and acetone into high value markets, and Jungbunzlauer is a superb technological and market-facing partner for Green Biologics, particularly in citric-based plasticizers, but in other bio-based esters as well,” added Staub.
“Sustainability has been a key principle of Jungbunzlauer since our founding in 1867. With our mission “From nature to ingredients®,” we believe that renewable products are essential for the future success of our customers in many evolving markets, including our CITROFOL® BI and CITROFOL® BII customers,” said Hans-Peter Froschauer, Product Group Manager of Specialties at Jungbunzlauer Ladenburg GmbH. “The opportunity for bio-based plasticizers in personal care, healthcare, bio-polymers and many other industrial applications is immense and it is global. We look forward to a long and successful collaboration with Green Biologics.”
Green Biologics is a member of the American Chemistry Council (ACC) and is building its new green solvents facility to meet Responsible Care™ standards. The company’s n-butanol and acetone have received 100 percent bio-based, USDA BioPreferred® status.
About Green Biologics: Green Biologics Ltd (GBL) is a renewable specialty chemicals company based in Abingdon, England with a wholly owned U.S. operating company, Green Biologics Inc., based in Ashland, Virginia. GBL’s Clostridium fermentation platform converts a wide range of sustainable feedstocks into high performance green chemicals such as n-butanol, acetone, and through chemical synthesis, derivatives of butanol and acetone used by a growing global consumer and industrial products customer base. The platform combines advanced high productivity fermentation with superior-performing proprietary Clostridium microbial biocatalysts and synthetic chemistry to produce a pipeline of high value green chemicals with optimal performance in downstream formulations.
Green Biologics was named to the Global Cleantech 100 list of the top Cleantech companies in the world for 2017 and was recently named the best renewable chemical company in the U.K. in the 2016 Clean Energy Awards.
Green Biologics is transforming the global specialty chemicals market, providing its customers with products and technologies that are more sustainable and higher value than petroleum-based alternatives. For more information, visit www.greenbiologics.com.
About Jungbunzlauer: Jungbunzlauer is one of the world's leading producers of biodegradable ingredients of natural origin. We enable our customers to manufacture healthier, safer, tastier and more sustainable products. Due to continuous investments, state-of-the-art manufacturing processes and comprehensive quality management, we are able to assure outstanding product quality. Our mission "From nature to ingredients®" commits us to the protection of people and their environment.
Read the original release: Jungbunzlauer and Green Biologics Partner on Bio-Based Plasticizers
February 15, 2017
By Jodi Delapaz
A group of engine experts and motorsports professionals recently testified about the benefits of ethanol during a panel discussion at Growth Energy’s Executive Leadership Conference in Miami.
Growth Energy assembled the panel to highlight engine performance and what the group sees as other advantages of using biofuels.
The panel – “American Ethanol: A 21st Century Fuel for 21st Century Performance” – featured Andy Randolph, technical director of ECR/RCR Engines; Keith Holmes of CK Motorsports; and Kyle Mohan of Kyle Mohan Racing.
Randolph discussed the octane boosting properties of ethanol and concluded that “it adds up to better engine performance for not only racecar drivers, but all drivers.” Randolph also added cost savings to his list of benefits of “choosing E15 at the pump.”
Holmes said he chooses ethanol to fuel his Cat Can Do Racing boats because it gives him a “competitive advantage, burning cleaner and cooler.” CK Motorsports is a Mercury engine dealer, specializing in high performance parts and service.
Mohan said he recommends that drivers fuel up with E15 because it’s better for the environment and gives consumers more miles per dollar.
“We are excited to have been able to assemble such a phenomenal range of experts touching on every facet of engine performance for our members,” said Emily Skor, Growth Energy CEO.
“Each one of these experts sees firsthand the tremendous benefits of ethanol for engines — whether those be race engines, marine engines, or everyday vehicles. We’re thrilled to showcase how these benefits extend to American drivers who are embracing higher ethanol blends, like E15 for its performance, environmental and cost considerations.”
Read the original story: Racing, Engine Experts See Benefits in Ethanol
February 13, 2017
By Timothy Cama
Senate Democrats are investigating the role that President Trump’s adviser Carl Icahn is playing in setting the administration’s ethanol policy.
The Democrats are concerned that Icahn, a prolific investor whose holding company owns more than 80 percent of fuel refiner CVR Energy, is using his advisory role to steer ethanol policies in his favor.
Sen. Sheldon Whitehouse (D-R.I.) and six of his colleagues wrote to White House counsel Don McGahn Monday, asking for details about what Icahn's interactions with the Environmental Protection Agency (EPA), how he influenced Trump’s decision to pick Scott Pruitt to lead the agency, whether Icahn is recusing himself from some matters and more.
Details that have been reported about Icahn and his role in the administration “suggest a conflict of interest between Mr. Icahn and advice he gave President Trump on the nomination of Mr. Pruitt,” the senators wrote.
“They further suggest he will be actively working to change RFS regulations to benefit CVR. And with a sprawling business empire and potentially unlimited portfolio in the administration to address ‘strangling regulations,’ Mr. Icahn’s role presents an unacceptable risk of further real or potential conflicts of interest absent immediate and thorough steps to address them.”
Trump announced in December that Icahn would be a “special adviser” on regulatory and deregulatory matters and would not be a government employee in any way.
Icahn has been pushing the EPA to tweak the renewable fuel standard in a way that would remove a regulatory “point of obligation” — the responsibility for demonstrating compliance with blending mandates — from fuel refiners and move that obligation to another party in the supply chain.
He wrote last year that the current system is costing CVR hundreds of millions of dollars.
In November, when President Obama was still in the White House, the EPA proposed to formally reject a petition from CVR and other refiners to make the regulatory tweak. But the agency extended the public comment period for that proposal to February, putting the ball in Trump’s court.
At Pruitt’s January confirmation hearing, senators asked him about the ethanol mandate and tried to ascertain whether he would make the obligation change that CVR seeks.
Pruitt largely avoided the question, saying only that he would follow the law, which leaves matters like obligation up to the EPA.
Read the submitted letter here.
Read the original story: Dems Probe Trump Adviser Icahn’s Role in Ethanol Policy
February 14, 2017
U.S. exports of distillers grains (DG) — a high protein co-product of dry mill ethanol production used to feed livestock and poultry — totaled 11.48 million metric tons (MMT) in 2016, down 10 percent from 2015’s record-high but still the second-highest on record, according to a 10-page summary of 2016 ethanol co-product trade data published today by the Renewable Fuels Association (RFA). DG exports were shipped to 50 countries on five continents last year.
According to the report, an estimated 31 percent of U.S. DG production was exported in 2016, meaning one out of every three tons produced was shipped to foreign markets. China was the leading destination for U.S. DG, followed by Mexico, Vietnam and South Korea. However, U.S. DG exports to China plunged 63 percent in 2016 compared to 2015, as the country implemented anti-dumping and countervailing duties against U.S. product. Meanwhile, shipments to nine of the other top 10 markets experienced growth in 2016. In fact, DG exports to Mexico, Vietnam, South Korea, Turkey, and Thailand grew by a combined 2.06 MMT in 2016 — equivalent to the annual DG production of 10 average-sized ethanol plants.
“Distillers grains and other co-products have become an enormously important component of the global feed market. This report underscores that our co-products are in high demand in every corner of the world,” said Renewable Fuels Association President and CEO Bob Dinneen. “Unfortunately, we saw a slight downturn in total exports in 2016 because of China’s protectionist actions to shut out U.S. distillers grains. Last week, RFA and our partnering organizations sent a letter to President Trump, alerting him to China’s unfair and illegitimate trade barriers, and urging the incoming U.S. Trade Representative to address the issue. We remain concerned with China’s actions and look forward to the administration’s response to ensure free and fair trade between our countries.”
Among other facts from the RFA report:
S. DG exports had a total value of $2.19 billion in 2016, down 27 percent from 2015 and the lowest in four years. DG export prices averaged $191 per MT, down 19 percent from 2015 and the lowest in six years;
While U.S. DG exports to East Asia were down, shipments to other global regions surged. In particular, Southeast Asia and the Middle East experienced dramatic growth;
S. exports of corn gluten feed (CGF) — a co-product from wet mill ethanol — rebounded to a five-year high in 2016. CGF exports were up 43 percent over 2015 levels. Ireland was the top market, receiving 27 percent of total U.S. CGF exports, while Turkey and Israel were other top markets; and
Total exports of corn and corn-based ethanol co-products tallied 73 million metric tons in 2016, the highest on record.
The new report is a companion to RFA’s 2016 ethanol trade summary published last week.
View RFA’s co-product trade summary here.
Read the original story: New RFA Report Shows U.S. Distillers Grains Exports Reached 11.48 Million Metric Tons in 2016
February 9, 2017
By North Dakota State University
Distillers grains could be a source of fertilizer for some crops, according to research at North Dakota State University’s Carrington Research Extension Center.
Wet distillers grains and condensed distillers solubles (sometimes referred to as “syrup”) are organic byproducts of ethanol production from corn.
Scientists at the Carrington center have been testing whether wet distillers grains and condensed distillers solubles are a viable source of phosphorus for corn and spring wheat crops. They applied those byproducts, as well as triple superphosphate, a fertilizer with a high phosphorus content, at various levels.
Here’s what they found:
Corn yield in 2016 increased by about 4 bushels per acre when phosphorus (P2O5) was applied at the rate of 40 pounds per acre.
Wheat yield increased by 2 bushels per acre when phosphorus was applied at the rate of 40 pounds per acre and by 5 bushels when phosphorus was applied at the rate of 80 pounds per acre.
In 2016, corn yields were significantly higher from applications of wet distillers grains than the other phosphorus sources, but in 2015, condensed distillers solubles produced much higher yields.
Wheat yield also increased significantly with wet distillers grains applications, compared with triple superphosphate, and applications of condensed distillers solubles produced higher yields than triple superphosphate but not as high as wet distillers grains.
“These results indicate that there are nutrient benefits to crops from using distillers grains as sources of crop nutrients,” says Carrington center soil scientist Jasper Teboh, who is involved in this research.
He speculates that nutrients in distillers grains such as sulfur may have enhanced the effect of the wet distillers grains and condensed distillers solubles. The yield gains from the distillers grains also probably are due to enhanced microbial activity. However, the scientists aren’t sure why the yields from the wet distillers grains were better than from the condensed distillers solubles in 2016 but not in 2015.
Teboh also cautions that the use of distillers grains may not be feasible for all producers.
“Preliminary assessment of net returns to farmers suggests that only producers farming within close proximity to ethanol plants are more likely to benefit from using distillers grains as fertilizer sources because of transportation costs,” he says. “As of early 2016, condensed distillers solubles cost much less ($5 per ton) than wet distillers grains ($30 per ton), and cost about $25 for an applicator to haul and apply within 25 miles of an ethanol plant.”
Visit the Carrington Research Extension Center’s website at http://tinyurl.com/DistillersGrainsasP for more information about this research.
Read the original story: NDSU Scientists Study Distillers Grains as Fertilizer
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February 8, 2017
By Erin Voegele
The U.S. Energy Information Administration has released the February edition of its Short-Term Energy Outlook, predicting U.S. fuel ethanol production will average 1.01 million barrels per day in 2017 and 2018, up from 1 million barrels per day in 2016. In January, the EIA predicted ethanol production would average 1 million barrels per day this year, increasing to 1.02 million barrels per day next year.
On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first three months of this year, falling to 1 million barrels per day in the second quarter, increasing to 1.02 million barrels per day in the fourth quarter and finishing out the final quarter of the year at 1 million barrels per day. In 2018, the EIA currently expects fuel ethanol production to reach 1.03 million barrels per day during the first quarter, falling to 1.02 million barrels per day during the second and third quarters, and falling to 980,000 barrels per day during the fourth quarter.
According to the February STEO, the EIA currently expects U.S. fuel ethanol consumption to average 940,000 barrels per day in 2017 and 2018, maintaining the 2016 consumption level.
U.S. regular gasoline retail prices are expected to fall from an average of $2.35 per gallon in January to an average of $2.27 per gallon in February, before increasing to an average of $2.33 per gallon in March. For the full year 2017, gasoline prices are expected to average $2.39 per gallon, increasing to $2.44 per gallon in 2018.
The EIA’s most recent weekly ethanol production data shows production averaged 1.055 million barrels per day the week ending Feb. 3, down from a record 1.061 million barrels per day set the week ending Jan. 27. The EIA’s most recent monthly import data shows the U.S. imported only 31,000 barrels of ethanol in September, all from Canada. The most recent monthly export data shows the U.S. exported 2.904 million barrels of ethanol in November, with Brazil, Canada, and China as the top destinations.
Read the original story: EIA Revises 2017, 2018 Ethanol Production Forecasts
February 8, 2017
By John Perkins
U.S. ethanol production is holding near record levels.
The U.S. Energy Information Administration says last week’s average was 1.055 million barrels per day, slightly less than the previous week’s all-time high of 1.061 million, but still above an average of a million barrels a week for the 15th week in a row.
Corn supplies are ample and the industry is expecting solid demand, despite uncertainties about Trump Administration policies towards renewable fuels and a slowdown in demand from China, which is trying to support its domestic industry at the expense of U.S. ethanol.
The high rate of production is also pushing stocks higher, with supplies at 22.085 million barrels, over 22 million for the first time since the week ending April 29th, 2016.
Read the original story: Ethanol Production Tops a Million Barrels for 15th Week in a Row
February 7, 2017
By Ann Lewis
After experiencing two months of unprecedented volumes, U.S. ethanol exports pitched downward 20% at the close of 2016, with 98.0 million gallons (mg) shipped out, according to government data released today. Brazil and Canada were the top destinations in December, receiving 42.5 mg (43%) and 27.3 mg (28%) respectively. Peru (6.1 mg), Nigeria (6.0 mg), the Philippines (3.7 mg), and South Korea (3.6 mg) were other leading importers of U.S. ethanol. In calendar year 2016, American ethanol producers exported 1.05 billion gallons—up 25% from 2015 and the second-highest annual total on record. Two-thirds of all shipments were sold to The Big Three—Brazil (26%), Canada (25%) and China (17%)—with remaining quantities dispersed among 75 other countries.
Denatured fuel ethanol exports totaled 34.9 mg in December, down 12% from the prior month and resting lower than recent averages. At 25.2 mg, Canada was once again the leading importer of denatured product with 72% of the market. Brazil increased its purchases to 6.5 mg (19%), as did Peru (3.1 mg), but China bowed out completely. December sales of 54.2 mg in undenatured fuel ethanol fell 31% from the prior month’s record-breaking high as Brazil scaled back to 36.0 mg, although still maintaining its foothold in market share (66%). The Philippines (3.7 mg), Peru (3.0 mg) and Nigeria (2.7 mg) were other top spots for undenatured fuel exports.
Sales of undenatured ethanol for non-fuel use returned to hefty levels, up 140% to 3.4 mg, as South Korea (2.7 mg) and Colombia (534,620 gallons) purchased their largest monthly volumes to-date. December sales of 5.5 mg in denatured ethanol for non-fuel use regained 31% over the prior month, shipped primarily to Nigeria (3.3 mg) and Canada (2.0 mg).
December was absent of any fuel ethanol imports—the third month in a row and the fourth time in 2016. As a result, the United States saw an average of less than 3 mg per month enter its borders the entire year, for a total of 33.7 mg and the second lowest level on record. Likewise, net exports have gained a new threshold.
Trade sanctions were likely responsible for much of the late-year deterioration in U.S. DDG export market and reshuffling of top customers. Mexico took over as the new leader in December with 161,165 metric tons (mt), despite an 18% decrease from prior month volumes. South Korea opened its doors to more U.S. DDG (up 27% to 96,573 mt), as did Turkey (up 35% to 93,669 mt) and Thailand (up 5% to 86,706 mt). China’s imposition of anti-dumping and countervailing duties against U.S. DDGS continued to erode that market, such that less than 60,000 mt entered the country in December. Similarly, Vietnam’s new phytosanitary/fumigation requirements reduced U.S. exports to less than one-tenth the November shipments. For the full calendar year, China did end up as the top market, receiving 2.4 million mt, or 21%, of the 11.48 million total U.S. DDG exports. Mexico was the No. 2 market at 1.9 million mt (17%), while Vietnam (1.2 million mt), South Korea (923,709 mt), and Turkey (789,613 mt) rounded out the top 5. The remaining third of all exports were scooped up by 45 other countries across the globe.
The Renewable Fuels Association released a new statistical report today to provide details on top export destinations, shifts in the marketplace, import volumes, the value of exports, and other key data regarding U.S. ethanol and co-products trade in 2016.
Read the original story: Ethanol and DDGS Exports Cap Off 2016 with Strong December Volumes
February 1, 2017
By Gary Truitt
According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.061 million barrels per day (b/d)—or 44.56 million gallons daily. That is up 10,000 b/d from the week before and a new record. It is the 14th week in a row with production above 1 million b/d. The four-week average for ethanol production stood at an unprecedented 1.054 million b/d for an annualized rate of 16.16 billion gallonsStocks of ethanol stood at 21.9 million barrels. That is a 0.7% increase from last week.
Imports of ethanol were zero b/d for the 23rd straight week. Gasoline demand for the week averaged 349.0 million gallons (8.310 million barrels) daily. Refiner/blender input of ethanol averaged 837,000 b/d, meaning gasoline delivered to the market contained an average of 10.07% ethanol.
Expressed as a percentage of daily gasoline demand, daily ethanol production was 12.77%.
Read the original story: Ethanol Production Continues to Set Records
January 31, 2017
By Edeniq Inc
Edeniq Inc., a leading cellulosic and biorefining technology company, and Archer Daniels Midland Co. recently announced that the U.S. EPA has approved Little Sioux Corn Processors’ registration of its 150 million gallon per year Marcus, Iowa, ethanol plant for cellulosic ethanol production. Under the terms of its license agreements with ADM and Little Sioux, Edeniq uses its Pathway Technology to measure the amount of cellulosic ethanol produced, and provides the required information to register for D3 cellulosic renewable identification numbers (RINs) with the EPA.
Little Sioux is the third plant to receive a cellulosic ethanol registration from the EPA after deploying Edeniq’s Pathway Technology. The plant uses ADM’s Clintozyme enzyme to convert lower value corn fiber, which is typically sold as a feed ingredient, into higher value fuel ethanol through an enzymatic process. Registered plants can access D3 RINS, which are worth over $2.50 per gallon in 2017.
“Our customers are at the forefront of cellulosic biofuel production in the United States,” said Brian Thome, president and CEO of Edeniq. “And thanks to the efforts by the EPA in their approval process, our customers are now receiving registration approvals in a shorter time frame, allowing them to generate value from our technology more quickly.”
“We have been able to demonstrate that ADM’s Clintozyme enzyme can provide improved economics and higher yields for ethanol producers, and we are pleased that Little Sioux is now able to take advantage of this technology,” said Del Cahill, general manager, BioAdvantaged Products at ADM.
Steve Roe, general manager of Little Sioux, stated, “We trialed ADM’s Clintozyme cellulase enzyme to increase our ethanol and corn oil yield. We saw positive overall corn to ethanol conversion rates, increased corn oil yields, lower btu’s per gallon, and decreased fouling of piping and evaporator equipment. When we accessed the Edeniq Pathway Technology through the license, Edeniq put the pieces together to allow us to produce D3 RINs, thereby increasing shareholder value.”
“Our team is adding resources to move plants through commercial validation trials and the EPA registration process as quickly as possible, as the current customer backlog has now grown to more than 15 plants,” said Cam Cast, chief operating officer of Edeniq. “These resources will also help us continue to offer the highest level of support to our existing customers, including Little Sioux. We would like to thank the EPA, Little Sioux and ADM teams for their ongoing partnership.”
Edeniq’s Pathway Technology is the lowest-cost solution for producing and measuring cellulosic ethanol from corn kernel fiber utilizing existing fermenters at corn ethanol plants and has produced up to 2.5 percent cellulosic ethanol, up to a 7 percent increase in overall ethanol yield, and additional corn oil recovery. Edeniq is the leader in developing analytical methods to quantify cellulosic ethanol co-produced with conventional ethanol. Edeniq’s EPA approved validation and turnkey registration process provide a solution for generating D3 RINs and other regulatory credits associated with cellulosic ethanol.
Read the original story: EPA Approves Little Sioux Corn Processors for Cellulosic Ethanol
January 28, 2017
By Nat Williams
A handful of farmers are not just raising the crops that can be used as biofuels. They’re also working on producing the fuel itself.
A Minnesota-based company is in the developmental stage of offering small-scale production of ethanol and other end-products right on the farm. Mark Gaalswyk of Easy Energy Systems describes the process by using a popular toy as an analogy.
“It’s a Lego concept,” Gaalswyk told farmers at the Family Farms group annual winter conference here. “There are different parts of the process. If one part becomes obsolete, you can replace it with another part.”
The company manufactures modules that can be linked to build “micro biorefineries” right on the farm. Feedstocks include corn, grain sorghum, sugar beets and unharvested waste products, such as fruits and vegetables.
“Long term, there is a lot of interest all over the world,” Gaalswyk said.
Jess Daily, who farms in Indiana, is among cooperators working with the company to build a factory on the farm. He is looking at using grain sorghum to manufacture bio-energy as well as n-butanol, a product with numerous uses, including pharmaceuticals, food additives and industrial solvents.
The Daily family is growing sorghum on marginal soils where corn is not a good option. He was sold on the idea after inspecting working models at Easy Energy’s headquarters.
“We got to see the plant and got to see the dedication. We were completely blown away by their ability and engineering skills,” he said. “At the end of the day, these guys know farming. They have an interaction can relate to what you’re doing every day. I told my dad this is a great opportunity.”
Gaalswyk said the Indiana project has promise.
“We’re working very closely with Jess and Daily Farms,” he said. “Once we get all of this to the point of making sense and coming close to starting that first plant, the next family team will come along. We’re working with Iowa State, and we’re looking for other projects, perhaps this year.”
Gaalswyk said the company’s engineers are testing 47 different feedstocks to determine feasibility of manufacturing various end-products. One project involving the manufacture of n-butanol is being tested on the Iowa farm of Harry Stine, founder of Stine Seeds. He said another project is being tested with cooperation of the Koch brothers, billionaire entrepreneurs and owners of Koch Industries.
Easy Energy is also working with Iowa State University on cellulosic technology. The company will soon begin building initial modules that convert feedstocks into sugar water and then into n-butanol.
“There is long-term interest all over the world,” Gaalswyk said.
Not surprisingly, building an ethanol plant — even a small one — is not cheap. It can take an investment of $20 million. But sales manager Tom Gallagher pointed out that a farmer can raise the money by a combination of sources that includes grants and leveraged money.
“If you’re interested, we’ll work with you on a financial plan, Gallagher said, adding that federal grants may be tapped. “Some testing will be required. As soon as the financials and the feedstocks make sense, we’ll help you put a business plan together, if you like.”
Read the original story: Farmers Looking at On-Farm Ethanol Plants
January 23, 2017
By Jesper Hedal Kløverpris
In December 2015, 196 nations made a pact known as the World Climate Agreement, with a goal of, “holding the increase in global average temperature to well below 2° Celsius above pre-industrial levels.” A key factor in whether we as a global community are able to meet that goal will be our ability to reduce CO2 and other GHG emissions.
The true cost of fossil fuels
Fossil fuels—coal, oil and natural gas—serve as the world’s primary source of energy. They make up approximately 80% of total energy consumption worldwide, and replacing them with cleaner energy sources is a difficult endeavor to say the least. However, continuing the use of fossil fuels will push us well beyond 2° above pre-industrial levels, which will cause devastating shifts in climates around the world, decimating coastal cities and island nations and causing irreparable harm to the planet’s delicate ecosystems. The U.S. alone emitted 6.87 billion metric tons of CO2 in 2014. If those environmental costs are factored into the price of fossil fuels, they suddenly become much more expensive.
Yet consumers most readily associate the cost of fossil fuels with the prices they pay at the pump; nearly 26% of the U.S.’s 6.87 billion metric tons of CO2 came from the transportation sector. Currently, fossil fuels account for 95% of U.S. transportation sector consumption. The lack of consideration for environmental costs is particularly alarming given that we’re already more than halfway to our 2° limit under the World Climate Agreement, and the fact that completely renewable energy is still years, if not decades, away.
One tool currently at our disposal, however, is bioethanol. Nowadays, ethanol is already replacing gasoline as an additive to the existing fuel mix. But starch-based ethanol additionally produces a low-cost feed ingredient rich in energy, protein, and phosphorus as a co-product. Cellulosic ethanol, which is often co-produced with bioelectricity, biogas and biofertilizers, can be produced alongside starch-based ethanol.
Because of these applications, ethanol is already displacing a lot of gasoline today. In the years to come, though, ethanol could play an even bigger role, working in concert with other technologies to drastically reduce GHG emissions. Those technologies, such as 100% ethanol-fueled vehicles and bioenergy with carbon capture and storage, are showing promising perspectives. But we don’t have to just sit back and wait. We can still move the needle today by making better use of available ethanol technologies.
Cutting emissions with starch- and sugar-based ethanol
In the history of transportation fuels, the mass production—and, to an extent, use—of starch- and sugar-based ethanol is quite recent, but these fuels indicate there is hope for a more harmonious future between sustainable energy and the transportation industry.
Corn serves as the primary source of the world’s starch-based ethanol, and it’s no surprise that most of the corn comes from the farmlands of the U.S. Today, the GHG emissions from U.S. corn ethanol are roughly 55.7 kg CO2e/MMBtu or 53 g CO2e/MJ. This includes emissions from so-called indirect land use change (ILUC). Hence, the emission assessment is based on a so-called marginal or consequential approach. Taking a similar approach to gasoline production leads to emissions of 115 g CO2e/MJ. This means that the relative GHG saving in a marginal/consequential perspective for average U.S. ethanol is around 54%.
Brazil, the world’s second largest ethanol producer, derives the fuel from sugarcane. Emissions from sugarcane ethanol are, on average, 51% lower than average gasoline (~60% compared to marginal gasoline). Under the U.S.’s Renewable Fuels Standard (RFS), the Environmental Protection Agency (EPA) considers sugarcane ethanol an Advanced Renewable Fuel because it cuts CO2 emissions by more than 50% compared to average gasoline.
Creating fuel ethanol from plant matter
Producers around the world are also working on other forms of renewable fuel that will provide even higher GHG savings. Also known as cellulosic ethanol, these fuels take plant matter from cellulose and hemicellulose to make a sustainable fuel.
Unlike most starch- and sugar-based ethanol, biomass used to create cellulosic ethanol can be derived from residues and waste. Examples include municipal waste, by-products from agriculture, forestry, and processing industries as well as a number of different grasses. Using these feedstocks, the fuel produced can help to efficiently meet the EPA’s emission reduction goals.
And, innovation in the renewable fuel space is constantly progressing. DONG Energy announced the development of the world’s first full-scale bio plant that will convert unsorted household waste into biogas—a process made possible by enzymes that Novozymes will provide. Biorefineries—facilities that produce fuels, power, heat and value-added chemicals from biomass—are even producing biofertilizers from the same products that are yielding the fuel. Additionally, the bioelectricity from these facilities can help to balance power fluctuations due to wind and solar energy sources.
The future of bioenergy is exciting, to be sure. But our planet’s climate won’t wait indefinitely while we work to find the perfect energy source.
Read the original story: Fuel Ethanol’s Role in the Fight Against Climate Change
October 22, 2016
A couple of months ago, we ran a column on the effects of ethanol in gasoline. We didn’t think it would be terribly controversial, because we reported only what we could confirm from reputable sources (mostly the United States Department of Energy). The story sparked reader interest like a match in a pool of spilled gasoline. By the time the comments section quieted down, we’d been accused of shilling for the oil industry, the ethanol industry, the left wing, the right wing, and everything in between.
To address the valid questions and concerns raised by our readers, we’re wading back into the ethanol discussion.
For this article, Digital Trends spoke in-depth with Dr. Andrew Randolph, Technical Director for ECR Engines. Dr. Randolph holds a Ph.D. in Chemical Engineering from Northwestern University, with a specialty in the combustion properties of ethanol-gasoline blends. He’s been working with NASCAR since 1999 and started with ECR in 2008.
ECR Engines is a high-performance engine production, research, and development company located on the Richard Childress Racing campus in Welcome, North Carolina. ECR Engines have earned more than 250 victories, including twice at the Daytona 500 and three times at the Brickyard 400. ECR engines have won championships in the NASCAR Nationwide and Camping World Truck Series, and the ARCA Racing Series presented by Menards. NASCAR races on 15 percent ethanol and 85 percent gasoline fuel.
Your lawn mower is not like your car
One of the most common complaints about our last article was that we ignored the effect of ethanol on small engines such as lawn mowers, chainsaws, weed whackers, and the like. Well, this is the Cars section of Digital Trends, not Home & Garden — but we’ll roll with it. We asked Dr. Randolph why ethanol can have such different effects on small engines.
“There is a difference between cars and lawn mowers, weed whackers, chainsaws, and things like that,” he tells Digital Trends. “Cars have a sensor in the exhaust which always optimizes the relationship of gasoline to air such that you have a perfect mixture regardless of what kind of gasoline you use.”
An Oxygen or O2 sensor communicates with a modern car’s engine control unit computer, telling it how to adjust the fuel-air mixture to stay in balance. In contrast, a small engine uses the simplest carburetor possible, with a fixed air-fuel mixture.
“When you add ethanol to gasoline, the ethanol has oxygen in it, so it changes the optimum ratio of the amount of fuel to the amount of air,” Randolph says. “You have some of the oxygen constituents in the fuel itself. A car will adjust for that automatically but lawn mowers are not able to adjust the ratio of fuel to air based on ethanol in the fuel.”
One problem is that the small engine manufacturers typically design and certify their engines to run on pure gasoline without any ethanol content. But about 97 percent of the gasoline sold at public service stations in America contains 10 percent ethanol.
“If they were to certify all these [engines] using E10 as the certification fuel, then the jetting and the carburetors on those devices would be set up to work optimally with E10,” Randolph explains. “And then you wouldn’t have any problem with those devices either.”
As a final note on small engines, Randolph warns against using E85 fuel, but states that conventional E10 should not be a problem in most cases.
“If someone thinks they had a problem in their chainsaw or their lawn mower because they’re using E10, they very likely would have had those problems anyway,” Randolph says. “When you start getting into higher concentrations like E85, if you tried to put that into your lawn mower or your weed whacker, then you will start having problems because that’s outside of the range in which the device is intended to operate.”