In the News
November 28, 2017
By DTN/Progressive Farmer
China’s newly instituted E10 mandate has the potential to create more demand for both corn and ethanol produced in the United States, according to a new analysis from the Center for Agricultural and Rural Development at Iowa State University.
In its fall 2017 agricultural policy review, CARD said there are many unknown details about China’s mandate. However, the Chinese are expected to see an increase in gasoline consumption from about 40 billion gallons in 2017 to 46 billion gallons in 2020.
“Meeting the national E10 mandate would require an extra 3.6 billion gallons of ethanol, putting China ahead of the European Union to become the world’s third-largest ethanol consumer,” CARD said.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than fourfold output growth within three years (assuming domestic production is to keep up with consumption).”
As U.S. ethanol producers have faced concerns about the implementation of the Renewable Fuel Standard in recent years, there has been an increased emphasis on growing export markets in China and elsewhere.
China’s government announced the new E10 mandate in September as a way to decrease the nation’s corn stockpiles that peaked at more than 4 billion bushels in 2015-16.
According to CARD, the total accounts for about half of world ending stocks and would be enough for domestic consumption for about six months in China. The stockpiles grew as a result of a corn price support policy that was paying Chinese corn producers more than twice the international price level until 2016.
“Burdened by high storage cost, food safety risks, and potential waste, China recently adopted multiple measures to cut supply and increase demand,” CARD said.
“These measures include replacing the support price with a producer support based on planted area and financial assistance for corn processors. These measures have been effective — since 2015, China’s corn consumption has caught up with production, the price for corn dropped to the lowest point in six years, and ending stock has been decreasing. The E10 mandate will further increase the demand for corn and speed up reduction of the stockpile.”
CARD said the mandate started on a trial basis in 11 provinces and will become national by 2020.
“This measure would require ethanol consumption in China, the largest motor vehicle market in the world, to at least quadruple within the next three years,” the analysis said.
“For U.S. producers, this recent development fuels interest in whether China is going to import ethanol and/or corn (the main feedstock for ethanol production in China) to meet the mandate.”
CHINA ETHANOL GAINS
CARD said that in 2016, China produced more than 1 billion gallons of ethanol. It became the fourth-largest ethanol-producing nation in the world behind the United States, Brazil and the European Union. China’s average annual production growth rate in ethanol production was about 17% from 2004 to 2016.
China’s primary ethanol feedstock is corn, according to the report, which accounts for about 64% of ethanol production in the country. China started ethanol production at four state-owned plants in northern China in 2002 after corn stockpiles reached historical highs.
“As the stockpile decreased and refineries started to use newly harvested corn for feedstock, the government stopped approving additional generation-one ethanol refineries in 2007. By calling for ‘appropriate development of grain-based ethanol,” according to CARD, “the current national E10 mandate relaxes the government’s previous stance against corn-based ethanol.”
In 2006, China began development of ethanol production using cassava. The starchy root plant now accounts for about 23% of China’s total ethanol production.
“However, it is challenging to grow enough generation 1.5 feedstock domestically, and cassava refineries in China still heavily rely on imports,” CARD said.
“Cassava refineries are located in southern China, close to domestic and foreign cassava production regions. Recently, China has been encouraging ethanol production using cellulosic feedstock. However, cellulosic ethanol production is not expected to reach large-scale production until 2025.”
The CARD analysis said recent low oil prices have hurt Chinese ethanol producers. In addition, the Chinese government gradually has removed ethanol subsidies.
“China has been importing substantial quantities of ethanol in the past two years,” CARD said.
“Before 2015, even though the imported ethanol was much cheaper than domestic ethanol, very little ethanol was imported. This is due to government forbidding distributors to handle imported ethanol in order to protect the domestic ethanol industry.”
US IMPORTS
In 2015, ethanol imports to China reached almost one-quarter of the country’s total supply in 2016, or about 225 million gallons. About 95% of those imports came from the United States. China was U.S. ethanol’s third-largest export destination in 2016, amounting to about 17% of total U.S. ethanol exports.
At the end of 2016, China increased the ethanol import tariff from 5% to 30%. CARD said that action caused the forecast for imports in 2017 to fall to just 35% of 2016 levels.
With a national E10 mandate in place, however, CARD said China will need to take action to ramp up ethanol availability.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than four-fold output growth within three years,” the report said.
“Currently, production capacity utilization rate is about 85%; therefore, a short-term production spur can be achieved with existing facilities. Beyond that, a dramatic increase in capacity is needed. Since it takes one to two years to build a large-scale generation 1 or 1.5 refinery in China, it is possible that China will be able to construct the physical facilities in time.”
If current trends in production and consumption continue, according to CARD, “China’s corn stock will fall quickly, opening up potential opportunities for more imports.”
The analysis said China’s E10 mandate is likely to speed up the reduction in corn stockpiles, requiring between 650 million and 1.35 billion bushels of corn per year.
“If China wants to maintain a stockpile of 1.39 billion bushels, the lowest in recent history, it will need to import 2 billion bushels of corn by 2020-2021 and much more after that,” CARD said.
“China may change its policies if it finds high levels of corn import unacceptable. In the past, China has imported large quantities of ethanol when domestic production has fallen short of demand. If imports surge as a result of the E10 mandate, the United States, the top ethanol exporter to China, will benefit” even with a 30% tariff in place at the time of the analysis.
Read the CARD analysis here.
Read the original article: Report: US Corn, Ethanol Could Benefit From China E10 Mandate
November 27, 2017
By DuPont Industrial Biosciences
DuPont Industrial Biosciences has announced the launch of Synerxia Thrive Fermentation System, the newest innovation in the company’s synergistic fermentation system technologies. The new fermentation system will deliver higher ethanol yields, incomparable robustness during thermal excursions and improved performance.
“With the new DuPont Synerxia Thirve Fermentation System, ethanol producers can now expect up to 4 percent higher ethanol yields in dry grind fuel alcohol facilities, when compared to conventional systems,” said Joseph DeSalvo, North America regional industry leader, DuPont Industrial Biosciences. “Synerxia Thrive is the result of a multiyear investment in yeast technologies focused on improving performance in ethanol fermentation to deliver increased value to our customers.”
DuPont Synerxia Thrive Fermentation System consists of a new active dry yeast (ADY), Synerxia Thrive ADY and Synerxia Thrive LC, a glucoamylase liquid complement. The new system blends the right combination of yeast and enzymes to deliver up to 4 percent additional ethanol versus a conventional yeast and glucoamylase combination.
Synerxia Thrive ADY incorporates a patent pending, carbon-efficient pathway that redirects a portion of the carbon that would go into CO2 and glycerol into ethanol production. In lab and plant results, the Synerxia Thrive Fermentation System outperformed conventional yeasts during thermal excursions and demonstrated increased robustness in the presence of organic acids.
“The launch of Synerxia Thrive Fermentation System gives ethanol producers the opportunity to integrate an unparalleled fermentation system into their business,” DeSalvo added. “We are thrilled to bring the technology to commercial scale to revolutionize the industry with our current and future partners.”
Read the original article: DuPont Launches Synerxia Thrive to Increase Ethanol Yields
November 23, 2017
By James Q. Lynch
The Environmental Protection Agency’s decision to deny attempts to change Renewable Fuel Standard rules is good news for the ethanol industry and fuel retailers who would have had to assume responsibility for blending ethanol with gasoline, according Iowa officials who opposed the changes.
“This is the right policy conclusion and I’m glad to see it happening,” Sen. Chuck Grassley said about the EPA decision announced Wednesday. “This decision puts the issue to bed, and certainty is so important. It’s a decision from the EPA that sides with the integrity of the RFS.”
Moving the point of obligation to blend ethanol with gasoline “from a handful of refiners to hundreds or thousands of small fuel retailers would undermine the integrity and viability” of the Renewable Fuel Standard, Grassley said. Refiners would have little incentive to produce the necessary fuel blends, which would make it difficult for fuel retailers to comply, he said.
Sen. Joni Ernst called it a “win for Iowans” that the administration is keeping President Donald Trump’s “pledge to rural America to advance the full potential of the RFS.”
However, the EPA ruling is not the final word on changes, according to Grassley’s office. A decision on proposed changes in the renewable volume requirements for cellulosic biofuel, biomass-based diesel, advanced biofuel and total renewable fuel renewable volume requirements is to be announced Nov. 30, the EPA said.
In rejecting a petition to shift the responsibility for blending renewable fuels to distributors, the EPA concluded that the change sought by oil interests would not benefit the program and could significantly reduce renewable volume obligations for ethanol and other renewable fuels under the fuel standard, which was implemented in 2005 as a way to support farmers, reduce imports and combat climate change.
That “ensures stability in the biofuels market,” said Gov. Kim Reynolds’ spokeswoman, Brenna Smith. “Gov. Reynolds expressed that to (EPA) Administrator (Scott) Pruitt on multiple occasions, and he genuinely listened to her concerns.”
The change sought by refiners was widely opposed by fuel marketers, retailers, truck stop operators, petroleum producers and renewable fuel producers because of the added complexity and the undermining of investments that businesses have made to comply, Grassley, Ernst and other senators from corn-producing states wrote to Trump.
“The overwhelming majority of transportation fuel market participants oppose any change to the point of obligation because it would cause massive disruptions and could lead to higher prices for consumers,” the letter states.
Changing the standard’s point of obligation would have rewarded “those who haven’t lifted a finger to help the implementation of the RFS and to punish those who have worked hard to make it the most successful energy policy in U.S. history,” Iowa Renewable Fuels Association Executive Director Monte Shaw said.
An administration official said that in the judgment of the EPA, changing the point of obligation would not result in a net benefit and would be disruptive to the program. Also, it would undermine “long-settled expectations, and the program stability” that are critical to success of the program.
Growth Energy, which represents producers and supporters of ethanol, called the proposed changes a “one-sided handout (that) would have added regulatory red tape, created havoc in the marketplace, and denied consumers access to more affordable fuels with higher blends of biofuels like E15.”
The RFS is America’s “single most successful energy policy,” saving consumers money, protecting the environment and improving U.S. energy independence, Growth Energy said.
Read the original article: EPA Won’t Change Responsibility for Ensuring Renewable Fuels
November 20, 2017
By Erin Voegele
The Agricultural Utilization Research Institute has named The Chippewa Valley Ethanol Co. of Benson, Minnesota, its 2017 Ag Innovator of the Year. The award, which has been given annually for the past 15 years, will be accepted by CVEC Board Chair David Thompson and General Manager Chad Friese at the company’s board meeting on Nov. 20 in Benson.
Each year, the AURI Board of Directors bestows the Ag Innovator of the Year Award, the organization’s highest honor, on a client company or entrepreneur it feels has made a substantial impact in the areas of product innovation, uniqueness and commercialization potential. This year’s award is the culmination of 20 years of cooperative work between AURI and CVEC.
“There were a number of contenders for this year’s award, but the board of directors felt CVEC’s many accomplishments and innovations in the ethanol industry best fit the criteria,” said AURI Executive Director Shannon Schlecht. “CVEC contributes to Minnesota’s economy by purchasing more than 18 million bushels of corn from local farmers and has a capacity to produce tens of millions of gallons of ethanol annually, and is notable in its constant exploration of innovative changes to its products and processes to add value for its members.”
CVEC began as a dream between two Benson men more than 20 years ago. They wanted to make the most of the area’s corn production while also stabilizing electricity rates. From that dream came the Chippewa Valley Agrafuels Cooperative, a group of more than 650 shareholders that included producers, elevators, and local investors.
In 1995, CVAC became the general partner of an ethanol partnership, The Chippewa Valley Ethanol Co., and by early 1996 was in full operation at its own facility. Among its accomplishments, CVEC was the first direct blend E85 facility in the state. However, the innovation didn’t end there. Today its facility produces fuel, as well as high quality alcohols used in food and beverage applications as well as industrial and pharmaceutical applications.
Currently, CVEC has the capacity to produce 50 million gallons of ethanol annually. It is still a small-town, Minnesota company at heart, but has grown to 975 cooperative owners, with the majority living within a 50-mile radius of the plant. CVEC is recognized at both the federal and state levels for efficient production and leadership in shaping ethanol policy.
“CVEC is focused on adding value to its coop members through the continued utilization of corn and ag-based products for fuel, feed and food, which add value to rural America,” Thompson said.
Since beginning operations, CVEC has grown and diversified, counting its culture of innovation as a significant strength that has led to solid returns for its member owners. Currently the company has ownership interest in four other ethanol companies and is a founding owner of the Renewable Products Marketing Group.
RPMG has grown into one of the premier ethanol and co-product marketing firms in North America. With RPMG’s logistical ability and industry contacts, CVEC fulfills customer order and placement needs with product staged in terminals throughout the United States or adjacent to export facilities. RPMG’s motto is also a CVEC guiding principle, “We take care of our customers.”
AURI awarded its first Ag Innovator of the Year in 2003. Previous winners include Kay’s Naturals of Clara City (2016), EarthClean Corp. of South Saint Paul (2015) and Midwest Ag Enterprises of Marshall (2014), among others.
Read the original article: AURI Names Chippewa Valley Ethanol Co. Ag Innovator of 2017
November 16, 2017
Press Release
Countries representing half of the global population and 37% of the global economy today agreed to scale up the low carbon bioeconomy and develop collective targets prescribing the contribution of sustainable bioenergy to final energy demand and as a percentage of transport fuel use.
The decision is set out in a declaration released today by the Biofuture Platform member countries – entitled “Scaling Up the Low Carbon Bioeconomy”.
It is a major breakthrough for sustainable biofuels and the broader bioeconomy, which will now become a key component of the global solution to climate change.
The declaration is the culmination of nine months of negotiations and is the first time countries and other stakeholders have formally agreed to develop targets for biofuels and the bioeconomy, and construct an action plan to achieve them.
The declaration was adopted today at the COP23 Climate Change Conference in Bonn by member countries of the Biofuture Platform: Argentina, Brazil, Canada, China, Denmark, Egypt, Finland, France, India, Indonesia, Italy, Morocco, Mozambique, the Netherlands, Paraguay, the Philippines, Sweden, the United Kingdom and Uruguay.
“What we have just accomplished here with the endorsement of this statement is quite remarkable”, said Brazil’s Minister of the Environment, José Sarney Filho. “The technology and the awareness of the need for bio-based solutions are finally coming together.”
The decisions announced today have been informed by modelling from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) – both partners in the Biofuture Platform – concluding that the 2030 temperature goals adopted in the Paris Agreement cannot be reached without a major increase in the production and use of sustainable biofuels and bioproducts.
Specifically, the IEA and IRENA conclude that “in order to limit the increase in global average temperature to well below 20C above pre-industrial levels and pursue efforts to reach 1.5ºC, bioenergy and biofuels share in the global energy matrix must be accelerated to achieve at least a doubling in the next 10 years”. In specific sectors, such as transport, the need is even greater. “Biofuels in transport would need to grow three fold by 2030, most of it coming from advanced technologies using non edible feedstocks, including waste and residues.”, says Fatih Birol, Executive Director of OECD’s International Energy Agency (IEA).
In addition to developing specific targets, participating countries will “devise an action plan outlining detailed actions to support achieving the targets, [and] develop a reporting mechanism to track progress”.
“Because of its abundant, renewable raw materials and its integration with existing fuel systems, biofuels have been instrumental in reducing emissions and replacing existing fuels,” said Special Representative for Climate Change of China, Mr. XIE Zhenhua. “Through problem-oriented work methods, we should strive to form feasible proposals or solutions and promote transformative measures”.
While some progress has been made in growing the bioeconomy, there is an urgent need to drive investments and overcome challenges in scaling up production and use, including oil and feedstock price volatility and policy uncertainty.
To address such challenges, in the declaration member countries agreed that coordinated international action is required to implement policy solutions, many of which have already been adopted by member countries, including specific biofuels mandates, sustainable low-carbon agricultural policies, R&D support, and incentives related to verified carbons savings.
In the declaration, member countries also call for climate and green financing mechanisms and institutions to ramp up resourcing of bioeconomy projects as a top priority.
“It is important that the statement includes key actions, as concrete actions are needed to reach our common goals. All actors need to get involved. With wise policy measures, like streamlining regulation and creating incentives, we can create an encouraging business environment for bio-economy investments”, said Kimmo Tiilikainen, Minister of Environment of Finland.
“While renewables have made rapid progress in the power sector, energy transformation in end use sectors such as industry, heating and transport needs to be accelerated to meet climate objectives. Bioenergy will play a key role in this context. As such, we welcome the vision statement of the Biofuture Platform and will continue to support it as it works to build a sustainable energy future,” said Adnan Z. Amin, Director-General of the International Renewable Energy Agency (IRENA).
The full text of the declaration and more information about the Biofuture Platform – launched at COP22 in Marrakech – can be accessed here: http://biofutureplatform.org/statements .
The declaration was be launched today at an official event convened by the Government of Brazil and the Center for Strategic Studies and Management, entitled the “Biofuture Platform and the contribution of bioenergy to the Paris Agreement”. Details are below. Media and Parties attended the event.
At the event, Brazil provided an update on the RenovaBio Program to create financial incentives for investments in low-carbon biofuels, as part of its commitment to the Biofuture Platform. A bill to implement the program was introduced into the Brazilian Congress this week.
Read the original press release: Biofuture@COP23: Major Countries Agree to Scale up the Low Carbon Bioeconomy and Develop Sustainable Biofuels Targets
November 15, 2017
By the U.S. Grains Council
An announcement was posted last week on China’s Ministry of Foreign Affairs' website that the country would again allow U.S. distillers dried grains with solubles (DDGS) to be imported without charging an 11 percent value added tax (VAT), potentially impacting global DDGS market dynamics for the better.
The announcement was made in a report of key areas of consensus between the United States and China during President Donald Trump’s official visit this week. Other areas impacted include banking, security and autos.
"We are pleased to see this move, which we've been working toward for months," said Tom Sleight, U.S. Grains Council president and CEO. "This change will immediately improve the competitiveness of U.S. DDGS in what was once our top market, which is a very positive thing."
In January 2016, China’s Ministry of Commerce announced it would begin anti-dumping and countervailing duty investigations related to U.S. DDGS exports to its country. Those cases resulted in duties applied to U.S. DDGS and the ending of an ongoing exemption from paying the VAT. The combination of the duties and the VAT made U.S. DDGS exports to China even less competitive, affecting market prices and export flows globally. While the VAT has been removed, the anti-dumping and countervailing duties remain.
China's actions against U.S. DDGS elicited a strong and detailed response from U.S. ethanol and DDGS industries, coordinated by the Council. The Council’s staff members in China and the United States have been working closely with the U.S government at the highest levels for nearly a year to emphasize the importance of this $1.5 billion market to the U.S. grains and ethanol industries.
U.S. DDGS exports to China fell from 5.4 million metric tons in 2015 to 3.3 million metric tons in 2016 and just 739,000 tons so far in 2017.
More on the USGC’s work in China is available here.
Read the original article: USGC: China Reallows Exemption from Value Added Tax for US DDGS
November 14, 2017
By Rachel Gantz
Nearly 90 percent of new 2018 model year (MY) vehicles are explicitly approved by the manufacturer to use 15 percent ethanol blends (E15), according to the results of an annual analysis of warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA). That is up from last year, when approximately 81 percent of MY2017 vehicles were formally approved by automakers to use E15.
For the first time, Nissan Motor Company has warrantied the use of E15 in most of its MY 2018 vehicles, joining the majority of its competitors. Together, Infiniti and Nissan represent slightly more than 9 percent of the U.S. light-duty automobile market. Language allowing the use of E15 appears in the owner’s manuals for popular Nissan models, including the Altima, Maxima, Pathfinder, Rogue, and Sentra, as well as Infiniti’s QX60, Q60, Q70, and certain Q50 models.
Other key points from RFA’s analysis include:
- The Detroit Three (Chrysler, General Motors and Ford), which collectively represent 44% of U.S. market share, all continue to clearly allow E15 in their vehicles. GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined the following year and Chrysler began E15 approval with its MY 2016 vehicles.
- Other large automakers explicitly offering E15 approval for MY 2018 vehicles include Toyota, Honda, and Hyundai/Kia. Altogether, auto manufacturers with 89.4 percent of 2017 U.S. market share now approve the use of E15 in their MY 2018 vehicles.
- Subaru, Daimler (maker of Mercedes-Benz), and Mazda remain the largest vehicle manufacturers that still exclude E15 from owner’s manual fuel recommendations and warranty statements, together representing about 7.5 percent of U.S. market share. It should be noted, however, that Mercedes-Benz offers three of its most popular models as flex fuel vehicles (FFVs) capable of operating on up to 85 percent ethanol.
- With 1.7 percent of the U.S. market, BMW also continues to exclude E15 from its fuel recommendations. However, BMW Group’s Mini vehicles again allow the use of up to 25 percent ethanol blends.
In 2012, EPA approved the use of E15 in vehicles built in MY 2001 or later. However, auto manufacturers did not retroactively endorse the use of E15 in legacy vehicles that were already on the road. Since 2012, however, the number of major automakers approving the use of E15 has grown from one (General Motors) to 10.
RFA estimates that approximately 34 percent of the estimated 235 million cars, trucks, and SUVs on the road today are clearly approved by the automaker to use E15 (including FFVs). Meanwhile, more than 90 percent of vehicles on the road were built in 2001 or later, meaning they are legally approved by EPA to use E15.
“Automaker acceptance and approval of E15 continues to expand rapidly, and almost all new 2018 vehicles carry the manufacturers’ explicit allowance to use this lower-cost, cleaner-burning, higher octane fuel,” said RFA President and CEO Bob Dinneen. “This analysis should put to rest any myths still being propagated by the American Petroleum Institute and its cronies that automakers don’t allow or warranty the use of E15. We applaud Nissan for joining the ‘E15 Club’ with its model year 2018 vehicles, and we will continue to work with the few remaining automakers who haven’t yet included E15 in their fuel approvals. We’re thrilled to see Mini continuing to blaze the trail toward greater consumer choice. By allowing the use of optimal high-octane fuel blends like E25 in conventional autos, Mini continues to set the pace.
“The oil company explanation for their failure to invest in infrastructure allowing E15 has been there isn’t sufficient demand for E15 because it isn’t warrantied. Well, that narrative has been misleading for years, but now it is completely bankrupt. As this analysis shows, 34% of the cars on the road today have full warranty coverage for E15. That compares to only about 10% of vehicles that require a premium fuel. Oil companies have invested in the infrastructure for premium, but why not for E15? The answer is obvious, they want to preserve their monopoly at the pump. But consumers deserve better. Consumers deserve higher octane fuels at lower prices. That’s what E15 provides. It’s time for the oil industry to stop erecting barriers to higher ethanol blends, and start serving the consumer,” Dinneen added.
Recently E15 has been experiencing incredible growth in the marketplace and it is sold today at more than 1000 retail stations in 29 states.
Fuel up with more E15 Facts on RFA’s webpage here and view the new RFA analysis here.
Read the original release: RFA Analysis: Automakers Approve E15 in Nearly 90% of New 2018 Vehicles
November 9, 2017
By Julie Breneman
After 10 years of research, University of Minnesota Duluth’s National Resources Research Institute delivered solid results this fall. As in solid biofuels. By the ton.
And while this is exciting progress, the NRRI is already gearing up for the next steps of biofuel development.
Starting at the bench scale in 2003 and fiddling with mixture after mixture, NRRI is now able to produce solid biofuels that perform at comparable energy values to coal in fossil coal-burning facilities. The biofuel emissions have no heavy metal pollutants and greatly reduced sulfur levels. As an added benefit, the biomass feedstock can be invasive plants, woody and agricultural waste, secondary wood species, and beetle-killed wood resources.
NRRI envisions this to be a supplement to fossil coal that helps reduce harmful coal emissions to meet state and federal mandates while minimizing new capital requirements at existing power and industrial plants.
“What’s really exciting, and what we’ve been working so hard on, is being able to produce this product at a commercially-relevant scale,” said Don Fosnacht, NRRI initiative director for renewable dnergy. “We had to find a way to make it physically robust and water-resistant for easy shipping and handling, and scale it up to 6 tons per day output. It wasn’t easy.”
The United States is moving away from fossil fuels—Oregon is the first state to aim for coal-free power by 2020—but the transition will be slow. NRRI helped to monitor a significant trial of solid biofuel at a Portland electric plant in 2017. They completely replaced the fossil coal with 3,500 tons of biofuel with only minor mechanical changes. This trial demonstrated that this similar biofuel provides roughly 2,500 Btu per pound increase over typical output for Powder River Basin coals.
The biofuel can be made with two processes: torrefaction (a dry roasting method) or hydrothermal carbonization (a pressure cooking method). NRRI’s large scale rotary kiln is best for roasting wood chips to make solid fuels. The second reactor is like a large pressure cooker that can take other plant biomass (milfoil, invasive cattails and agricultural waste) to make an “energy mud” that is formed into solid fuels.
“If you think about how Mother Nature made fossil coal, it’s time, pressure and heat,” explained NRRI Engineer Tim Hagen. “We’re doing those same processes, but instead of millions of years, we’re doing it in a few hours. And because minerals don’t get into the mix, we don’t have those potential pollutants.”
And while this is exciting progress, NRRI is already gearing up for the next steps of biofuel development. Using a high pressure gasification process on the solid fuels, they hope to demonstrate the conversion of the solid biofuel into a synthetic natural gas (sometimes called “syngas”). Other products would be high value chemicals, liquid fuels and activated carbon.
White wood pellets have made it to market as a coal alternative and they’re a large U.S. export to Europe. But unlike NRRI’s solid biofuel, white wood pellets require major infrastructure changes at the power plant including massive warehouses, and they easily break down during transport and exposure to weather.
NRRI’s renewable energy research was funded by a grant from Xcel Energy, Minnesota Next Generation Energy Board/MN Dept. of Agriculture, Minnesota Power, Heetway, K.R.Komarek, Inc. and the Consortium for Advanced Wood to Energy Solutions.
Read the original article: NRRI Develops Solid Biofuel to Offset Coal
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November 8, 2017
By the Renewable Fuels Association
Consumers have been saving money thanks to ethanol for years, but never as much as today. Nearly every consumer that chooses ethanol at the pump is saving money, whether using regular unleaded with 10% ethanol (E10), mid-grade with 15% ethanol (E15), or any one of the many flex fuel options like E85.
According to crowd-sourced data from the Renewable Fuels Association’s E85prices.com, the national price spread between regular unleaded and E85 has never been greater in the 17 years of tracking on the website. That price differential is currently at 33% for the month of November, or more than 8 percentage points higher than any other month in recorded history on the website. In many locations today—including California, Ohio, Iowa, Kentucky, Indiana and Illinois–E85 is at least $1 per gallon cheaper than E10. On average nationwide, flex fuel vehicle drivers who fill up with 20 gallons of E85 are saving $14 per tank over drivers who fill up with E10. Even when ethanol’s lower energy density is factored in, E85 costs less than E10 per mile driven.
The advantageous price scenario is due to the widening price spread between ethanol and gasoline, but also the strong value of Renewable Identification Numbers (RINs) credits. In recent weeks, wholesale ethanol prices have been 15-20% below wholesale gasoline prices—the largest discount in more than two years.
Fuel blenders are further discounting the price of ethanol blends by passing along the value of RIN credits to retailers and consumers. Blenders capture the RIN credit when they blend ethanol with gasoline; they can then sell the RIN credit to other blenders or refiners and share some or all of the profit from that sale with retailers and consumers by marking down the price of the ethanol-blended fuel.
“This once again demonstrates the ability of ethanol to save consumers money, and proves the Renewable Fuel Standard and RINs are working to drive expanded use of cleaner, cheaper renewable fuels,” said RFA Vice President of Industry Relations Robert White. “The combination of various federal, state and industry infrastructure funding initiatives, along with the value of RINs, are allowing fuel retailers the ability to invest in infrastructure, while also passing along savings to the consumer. We are seeing tremendous growth in the availability of higher blends of ethanol at the retail level, and at a price point that will interest anyone looking to save money at the pump,” he added.
Ethanol detractors have claimed that RINs are a tax that negatively impact consumers, but the marketplace is showing otherwise. Those that have chosen to embrace the RFS are helping consumers daily.
“There are always stations that defy logic by charging more for E85 than unleaded, but those stations are becoming a rarity,” said White. “Most retailers are agnostic about what products they offer, as long as they have margin and volume. Right now, higher ethanol blends are offering a significant opportunity for blenders, retailers and consumers alike.”
Read the original article: Consumers Win with Ethanol
Press Release
November 8, 2017
ENGLEWOOD, Colo., Nov. 08, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that its alcohol-to-jet fuel (ATJ) derived from renewable isobutanol is being used today by eight commercial airlines for Fly Green Day, sponsored by the O’Hare Fuel Committee, at Chicago O’Hare International Airport. This event is the first time renewable jet fuel has been supplied at Chicago O’Hare using the existing airport fueling infrastructure, such as pipelines, terminals and tankage.
To date, airlines and airports have generally relied on alternative means of supplying renewable jet fuel to the wing, usually trucking jet fuel on site for blending and fueling. For today’s Fly Green Day, Air BP blended Gevo’s ATJ with regular fossil-based Jet A fuel, certified its quality and then supplied its customers through the airport’s main fuel hydrant system.
Commercial airlines participating in today’s event are:
-Lufthansa
-United Airlines
-Etihad
-Cathay Pacific Airways
-Emirates
-Japan Airlines
-Korean Air
-Atlas Air
“This is the first time we have supplied our customers with biojet produced from alcohol and demonstrates how we are working with multiple suppliers to build a leadership position in this area,” said Air BP’s Chief Executive Officer Jon Platt. “We anticipate that through this promotion we will inspire more of our customers to use lower carbon fuels.”
“We are excited to be a part of this project. This is the next stage in development of our goal to reduce greenhouse gas emissions and move forward with the full commercial deployment of renewable jet fuel,” said Thorsten Luft, Vice President Corporate Fuel for Lufthansa AG.
“This is a significant milestone as we continue to develop our ATJ platform. We fundamentally believe that our ATJ is one of the most cost competitive bio-based jet alternatives in the market place. Leveraging existing supply infrastructure should lower the full cost to serve our end customers. Jet fuel is one of Gevo’s core market segments and this represents the next step in building a profitable business from this market vertical,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.
Read the original press release: On Fly Green Day, Eight Airlines Fly with Gevo’s Jet Fuel from O’Hare Air BP Provides Commercial Validation of Jet Fuel Delivery System at Chicago O’Hare with Renewable Jet Fuel
November 4, 21017
by Natalie Howell
U.S. Sen. Amy Klobuchar visited the Green Plains ethanol plant in Fairmont on Friday to talk about local and national issues with company representatives and local leaders.
The stop in Fairmont is part of a six-county tour through southern Minnesota, where Klobuchar has been meeting with different companies and local representatives to talk about the economy and issues facing communities.
Green Plains, based in Omaha, Nebraska, is the second-largest ethanol producer nationally. The Fairmont location is one of two Green Plains ethanol plants in Minnesota, with the other one in Fergus Falls. The Fairmont location has 61 employees. Executive vice president Steve Bleyl and plant manager Jon Richardson represented Green Plains in the meeting.
“Fairmont’s been good to us,” Bleyl said. “We try to keep a lot of our business local as close as we can. We try to get that money spread out.”
State Rep. Bob Gunther and Fairmont Mayor Debbie Foster joined Klobuchar to talk about issues facing the community.
Foster said the main concern she has for Fairmont is attracting skilled workers to the area, and the ability to support the workforce through affordable housing and daycare. However, she is encouraged by the City Council’s willingness to take risks and work toward bringing workers to Fairmont.
“The majority of the council I think is willing to say, ‘You know what, I think we need to do something.’ We do need to do something,” Foster said.
A topic of conversation Friday that has been in the national news over the past month is the issue of the 2018 Renewable Fuel Standard. The RFS is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
The standard was created to expand the renewable fuels industry in 2005, and the volume standards were laid out through 2022 when the law was expanded in 2007. However, the U.S. Environmental Protection Agency can alter the standards in order to protect the economy.
The EPA proposed a reduction in the 2018 Renewable Fuel Standard blending requirements. Following this proposal, a bipartisan group of 38 senators, led by Klobuchar and Sen. Chuck Grassley, R-Iowa, sent an open letter to EPA Administrator Scott Pruitt to show opposition to the proposed changes and stress the importance of the renewable fuel on the U.S. economy.
Recently, Pruitt announced that EPA will no longer be moving forward on proposals to lower RFS levels.
Klobuchar said the issue of renewable fuel has more to do with geography than party lines, which is why there is bipartisanship on both sides of the issue.
“We’ve really built coalitions along party lines, and that’s good,” she said. “It’s always better to be in that position. And we’ve been able to ward off efforts to basically get rid of ethanol and we don’t like that at all. We would rather be spending money and supporting the workers of the Midwest instead of the oil companies in the Middle East.”
Read the original article: Senator Weighs In On Ethanol
November 1, 2018
By Erin Voegele
The White House Office of Management and Budget is reviewing the U.S. EPA’s final rule to set 2018 Renewable Fuel Standard renewable volume requirements (RVOs), along with the 2019 RVO for biomass-based diesel. OMB review marks a final step before the final rule is released to the public. Under statute, the EPA is required to issue a final rule establishing 2018 RVOs by Nov. 30.
The EPA first released its proposal to set 2018 RVOs and the 2019 RVO for biomass-based diesel on July 5. The proposal calls for 19.24 billion gallons of total renewable fuel, including 238 million gallons of cellulosic biofuel, 2.1 billion gallons of biomass-based diesel and 4.24 billion gallons of advanced biofuel. The 2.1 billion gallon biomass-based diesel requirement for 2018 was finalized last year. For 2019, the new proposal calls for the biomass-based diesel RVO to be maintained at 2.1 billion gallons.
When compared to the final RVO for 2017, the requirement for total renewable fuel drops slightly from 19.28 billion gallons to the proposed 19.24 billion gallons. The cellulosic RVO has also been lowered, from 311 million gallons in 2017 to a proposed 238 million gallons in 2018, with the advanced biofuel requirement dropping from 4.28 billion gallons in 2017 to a proposed 4.24 billion gallons in 2018. The final RVO for biomass-based diesel in 2017 was set at 2 billion gallons.
A comment period on the proposal opened July 21 and ran through Aug. 31. Approximately 236,370 comments were filed on the proposed rule.
On Sept. 26, the EPA published a notice of data availability (NODA) contemplating reductions in 2018 and 2019 RVOs. The potential reductions primarily targeted biomass-based diesel, but could potentially results in corresponding reductions in RVOs for advanced biofuels and total renewable fuels.
The NODA cites issues related to the cost and supply of biofuels as reasons for the EPA’s action. Specifically, the NODA cites the expiration of the $1 per gallon biodiesel tax credit and a recent preliminary determination by the U.S. Department of Commerce that it would be appropriate to place countervailing duties of 41 percent to 68 percent on imports of biodiesel from Argentina and Indonesia as factors that could impact the cost and supply of advanced biofuels.
The NODA was subject to a 15-day comment period that closed Oct. 19. Approximately 40,017 comments were filed on the proposal.
Several senators, members of congress, governors and groups representing the biofuels industry fought back against the EPA’s proposed action. As a result, EPA Administrator Scott Pruitt issued a letter Oct. 20 in which he indicated the EPA expects to set final 2018 RVOs at or above proposed levels. Pruitt also said the EPA would issue a final rule maintaining the current point of obligation under the RFS within 30 days. In addition, Pruitt said the EPA is actively exploring whether it possesses the legal authority to extend the Reid vapor pressure (RVP) waiver to fuel blends containing more than 10 percent ethanol. He also noted the EPA has not and will not take any formal action to propose amending RFS regulations to allow renewable identification numbers (RINs) to be attached to exported volumes of ethanol.
Read the original article: OMB Reviewing Final Rule To Set 2018 RFS RVOs
October 27, 2017
By Renewable Fuels Association
Drivers of flex fuel vehicles (FFVs), which can handle higher ethanol blends up to 85 percent, now have even more places to fuel up. According to E85prices.com, operated by the Renewable Fuels Association, there are now more than 4,000 stations throughout the U.S. offering E85.
There are more than 22 million FFVs on U.S. roads and now consumers have greater access to higher ethanol blends. Minnesota offers the most E85 stations, but states outside the Corn Belt have shown the greatest uptick in recent years. States like California, Texas, Florida, North Carolina and Pennsylvania have demonstrated tremendous growth in offering higher ethanol blends.
Greater consumer access to E85 is due to a combination of factors, including RFA’s overall market development efforts, the past Blend Your Own Ethanol Campaign, U.S. Department of Agriculture’s Biofuels Infrastructure Partnership Program, and the ethanol industry-funded Prime the Pump initiative.
“Reaching this milestone is a tremendous achievement,” said RFA Vice President of Industry Relations Robert White. “Consumers with FFVs ought to have access to E85, whether they’re in Iowa, California or Florida. This expansion allows consumers with FFVs in many areas the opportunity to fuel with E85 for the first time. We applaud retailers for increasing efforts to bring further consumer choice to the market and we look forward to more stations opening up in the future.”
“Today’s news should also further show EPA that there is ample ethanol blending capability to accommodate higher Renewable Fuel Standard Renewable Volume Obligation requirements than what the agency has proposed,” White added. “If just half of the FFVs on the road today used E85, there would be more than 6 billion gallons of E85 demand, and you cannot ignore the growing demand from E15 and other blends. EPA must acknowledge this reality in its final 2018 RFS rule.”
E85prices.com is crowdsourced and offers updated prices and locations for E85, E15 and other ethanol blends from thousands of stations across the country.
Read the original article: RFA Data: More Than 4,000 US Stations Offering E85
October 17, 2017
By Jim Grey
The current policy landscape in Canada is exciting to say the least. The federal government is crafting a Clean Fuel Standard to reduce Canada’s greenhouse gas (GHG) emissions by 30 megatonnes of carbon dioxide equivalent per year, with the transportation sector being one of three key targets.
Meanwhile, Quebec and Ontario are looking to implement new policies supporting the use of ethanol.
Within this context of a concerted build-out of policy supporting renewable fuels, Renewable Industries Canada (RICanada) welcomed a new Conference Board of Canada report, Renewable Fuel Standards Within a Low-Carbon Fuel Strategy, released in September. According to the report, maintaining blend mandates is critical to the success of Canada’s climate change agenda as it relates to the reduction of transportation emissions in the near and longer term.
The transportation sector is a top source of GHG emissions in Canada and is projected to grow with population and GDP growth. Maintaining volumetric requirements for renewable fuels such as ethanol and biodiesel will be an integral part of Canada’s transition to a low carbon future.
The report says a “clean fuel standard that fails to maintain, or expand, current blend mandates for renewable fuels is not recommended.” Moreover, the report concludes that clean fuels targets envisioned as part of a broader CFS are almost certainly unattainable without mid- to high-level blending of renewables into the fuel stream.
Mark Jaccard, Professor of Sustainable Energy Economics at Simon Fraser University, says, "Governments have yet to achieve the levels of carbon pricing needed to transition the transportation sector away from fossil fuels. Until such time, renewable fuel standards should not be weakened and may need to see their stringency increased, especially if flexible policies like the low carbon fuel standard are not quickly implemented and tightened."
The report also reinforces that the environmental benefits of blending renewable fuels, such as ethanol and biodiesel, are clear and well-documented. For instance, ethanol’s national 5 percent mandated content in gasoline helps reduce GHG emissions by 4.2 megatonnes annually, equivalent to 1 million cars being removed from Canada’s roads each year.
Beyond retaining the environmental benefits of the fuels, as the Conference Board notes, blend mandates also provide retail market access to low-carbon fuels for consumers, and a stable investment environment for the renewable fuels industry.
At the end of the day, ethanol is the only low-carbon, renewable fuel alternative for gasoline available at commercial scale, meaning that retaining—and, ideally, increasing—blend mandates will help ensure the availability of low-carbon octane to the Canadian fuels market and realization of these benefits.
Canada is urgently developing policy that will allow it to meet its commitments in the Paris Accord. As a part of this process, it is impossible to ignore both the historic contribution of renewable fuel standards that set a volume-based benchmark, and the forward-looking analysis brought forward by groups such as the Conference Board of Canada that call for their use well into the future.
Read the original story: Study: Biofuels Key in Reducing GHG Emissions
October 16, 2017
Last Friday, Australian based Qantas Airways announced that its Los Angeles based aircraft will be powered by biofuel from 2020 onwards.
The announcement came in the wake of a commercial agreement with US-based bio-energy company SG Preston, which was called a “landmark” agreement.
Over the next decade, Qantas Airways will be purchasing eight million gallons, i.e. 30 million liters, of renewable jet fuel each year, which will consist of 50 percent out of non-food plant oils blended with 50 percent traditional jet fuel.
Compared to standard jet fuel, the biofuel emits half the amount of carbon emissions per gallon over its life cycle.
Gareth Evans, CEO of Qantas International and Freight stated that the commercial biofuel agreement is the first of its kind in the Australian aviation history.
He said: “The partnership with SG Preston is part of our commitment to lowering carbon emissions across our operations and sees us becoming the first Australian airline to use renewable jet fuel on an ongoing basis”.
He added: “Through our biofuel program we are also exploring renewable jet fuel opportunities in Australia and continue to work with suppliers to develop locally produced biofuels for aviation use”.
Randy Delbert LeTang, SG Preston’s CEO commented: “Qantas is showing great leadership in its commitment to biofuels”.
“We look forward to providing a high-performance renewable fuel for one of the most important routes on their international network”.
Michael Gill, Director of Environment for IATA applauded the new partnership, as he underlined that “deals such as these are critical to the development of an aviation biofuel sector globally and the achievement of the aviation industry’s climate goals”.
In 2012, Qantas and Jetstar operated Australia’s first commercial flight powered by sustainable aviation fuel as a trial flight.
The flight was Sydney-Adelaide return and was powered by biofuel derived from used cooking oil, split 50:50 with conventional jet fuel.
International Civil Aviation Organization reached a carbon-offset agreement in 2016 which called for a worldwide reduction in commercial aviation emissions to 50 percent of 2005 levels by 2050.
Read the original story: Qantas Airways to Operate Biofuel Flight from LA to Melbourne by 2020
October 19, 2017
By Gary Wertish
By now, it’s obvious that the farm economic crisis is largely caused by an oversupply of corn and soybeans with not enough demand. Meanwhile, climate change looms large over the United States, one of the symptoms being destructive hurricanes that damage oil refineries in Texas.
We can look to previous farm depressions for advice. In the past, renewable fuels have been key in raising producers out of tough times. This is why it makes no sense that the U.S. Environmental Protection Agency (EPA) has announced lower proposed renewable fuel volume obligations under the Renewable Fuel Standard (RFS). Corn growers sell millions of bushels of corn to ethanol plants every year. Soybean growers need more opportunities to market their products, like biodiesel. The U.S. needs to reduce its dependence on fossil fuels.
President Donald Trump has said on multiple occasions that he wants to grow the ethanol industry. That’s a good promise to keep. But his energy secretary, Rick Perry, asked the EPA to waive half the conventional renewable fuel quota as Texas governor in 2008, according to a Bloomberg News story. His EPA Administrator, Scott Pruitt, is the leader of the agency that seems to be working against the interests of U.S. farmers and the environment.
EPA has released a Notice of Data Availability, inviting public comments on “potential options for reductions in the 2018 biomass-based diesel, advanced biofuel and total renewable fuel volumes, and/or the 2019 biomass-based diesel volume under the (RFS) program.” The notice includes suggestions of reducing biomass-based diesel by 315 million gallons. This would drop the total Renewable Volume Obligation (which includes conventional ethanol) to 18.77 billion gallons from 19.24 billion gallons.
The good news is that there’s nothing mentioned about changing the Trump administration’s call for 15 billion gallons of availability for conventional biofuel, which is typically corn ethanol. However, the fact that EPA is considering rolling back renewable fuels of any kind is still a concern. The RFS law is intended to expand markets for biofuels produced in the U.S. Plus, biofuels provide jobs for rural America and lower the cost of fuel for consumers.
Another piece of good news for Minnesota is the B20 mandate. Starting in spring 2018, diesel fuel sold here will be required to contain at least 20 percent biodiesel. That’s an increase from the current B10. The entire nation should be going this direction.
We need ethanol and other biofuels because they are grown in the United States, provide a boost to farmers and reduce our dependence on fossil fuels. Some of the biggest oil refineries in America were just hit hard by Hurricane Harvey and were shut down for weeks, driving gas prices up everywhere. Turning to more renewable fuels can ease that pain in the future.
Minnesota Farmers Union urges the EPA to increase biofuel volume requirements – not decrease them.
Read the orignal story: Op-Ed: High Renewable Fuel Standard Crucial to Help Farmers and Climate