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In the News

Renewable Fuels Association

Aug 25, 2016

WASHINGTON — Today, University of Michigan Energy Institute researchers, led by longtime biofuels critic Professor John DeCicco, released a study funded by the American Petroleum Institute (API) claiming biofuels do not reduce carbon emissions compared to petroleum. Below is a statement from Renewable Fuels Association President and CEO Bob Dinneen:

“This is the same study, same flawed methodology, and same fallacious result that Professor DeCicco has churned out multiple times in the past. He has been making these arguments for years, and for years they have been rejected by climate scientists, regulatory bodies and governments around the world, and reputable lifecycle analysis experts.

“As crazy as it sounds, Prof. DeCicco is essentially suggesting that plants ultimately used for bioenergy don’t absorb carbon dioxide from the atmosphere as they grow. In other words, he and his sponsors at the API are arguing that the scientific community’s centuries-old understanding of photosynthesis and plant biology is wrong. DeCicco’s assertion that plants somehow emit more carbon when burned as fuel than they take in from the atmosphere during photosynthesis defies the most basic laws of plant physiology.

“Just like Prof. DeCicco’s last study, this work was funded by the API, which obviously has a vested interest in obscuring and confusing accepted bioenergy carbon accounting practices. It’s a bit like the tobacco industry funding a study that says bubble gum is worse for the human body than cigarettes. While it’s flattering that API has taken such an interest in the climate benefits of biofuels,  the public would be better served if the oil industry spent its time and money examining and owning up to the very real — and very negative — climate impacts of petroleum.

“The truth is, biomass crops used to produce energy act as temporary carbon sinks. During growth, they quickly absorb CO2 that was just in the atmosphere. The same amount of CO2 is then returned to the atmosphere when the carbon in the crop is combusted for energy. In this way, the use of biomass for energy recycles atmospheric carbon as part of a relatively rapid cycle. In contrast, the use of fossil fuels adds to atmospheric CO2 by emitting carbon that was previously sequestered deep underground for millions of years.

“According to researchers at Duke University, the University of Minnesota, and Oak Ridge National Laboratory: ‘A critical temporal distinction exists when comparing ethanol and gasoline lifecycles. Oil deposits were established millions of years in the past. The use of oil transfers into today’s atmosphere GHGs that had been sequestered and secured for millennia and would have remained out of Earth’s atmosphere if not for human intervention. While the production and use of bioenergy also releases GHGs, there is an intrinsic difference between the two fuels, for GHG emissions associated with biofuels occur at temporal scales that would occur naturally, with or without human intervention. …Hence, a bioenergy cycle can be managed while maintaining atmospheric conditions similar to those that allowed humans to evolve and thrive on Earth. In contrast, massive release of fossil fuel carbon alters this balance, and the resulting changes to atmospheric concentrations of GHGs will impact Earth’s climate for eons.’”

Read the original story here: API-Funded Study Obscures Lifecycle Emission Benefits Of Biofuels

American Spectator

By Sen. Jim Talent

Aug 23, 2016

As seen on these pages in the past, it’s not uncommon for commentators to lump America’s thriving biofuel sector into the same category as taxpayer-funded green energy flops like Solyndra. Yet the facts show that the Renewable Fuel Standard (RFS) has been remarkably successful at enhancing America’s energy security by smoothly integrating a growing share of home-grown biofuels into the domestic energy mix, gradually reducing our need for oil imports. No other policy has so effectively undermined the international oil cartel that seeks to profit from our dependence on oil.

Today, ethanol and other biofuels meet about 10 percent of our transportation fuel needs. Without the RFS, which requires refiners to meet specific blending targets, there is simply no way that our dependence on foreign oil could have fallen by half since 2005. This has occurred not only without increasing the price of automobile fuel, but while decreasing it; a gallon of ethanol sells for about $1.70 per gallon, so ethanol blends hold down the price at the pump. Moreover, the market-based trading system that allows refiners to buy and sell biofuel credits — or RINS — has given the industry broad flexibility to meet the changing needs of the marketplace with minimal cost or inconvenience.

It’s true that the trading system opens up some opportunities for fraud, but the answer to that is not to eliminate the trading system, much less the RFS, but to prosecute the fraud. In any event, the RIN trading system is much less high risk for abuse than other private or public programs (the credit card system and Medicare come to mind) because the customers for the credits are sophisticated oil companies like Valero and ExxonMobil. If Exxon buys fake biofuel credits from a scam artist working out of his garage, that is regrettable, and the perpetrators should be and are prosecuted, but Exxon and Valero are surely in a better position to protect themselves than the typical consumer or beneficiaries of other programs.

As one of the original sponsors of the RFS, I always point out that there are no subsidies for corn ethanol, and that the tax breaks supporting conventional ethanol were phased out years ago. The RFS is no give-away program; it simply guarantees market access in a sector where one class of producers — dominated by foreign players — would otherwise have a monopoly over consumer options. It ensures that domestic biofuel producers have a spot at the pump, where consumers can select the most affordable option, which is typically an ethanol blend.

In an unrestricted marketplace, there would be no need for the RFS, but the market for transportation fuels hasn’t fallen into that category for 45 years. Ministers from Russia, Saudi Arabia, and members of the Organization of Petroleum Exporting Companies (OPEC) oil cartel meet regularly to strategize against competition and funnel more American dollars into the hands of hostile regimes. The threat is no less real today than it was when the Arab countries imposed their first embargo on the U.S. economy decades ago.

Their current strategy has been to flood the market, driving out new competition in the U.S. It’s working. Employment in the U.S. oil and gas sector fell by 142,000 between October 2014 and May 2016 — a 26 percent drop that severely limits our ability to bring production back online. But some OPEC members are already looking forward to phase two, when they pull back on global supplies and drive prices at the pump back to record levels. The American consumer is just a pawn in this game, but it is not a game that can be played against renewable fuels, because of the RFS. The price of ethanol and other renewables is set by competition, not by a cartel.

As a result, billions of dollars have been invested into the domestic biofuels industry. Home-grown options are more affordable than ever, they produce dramatically fewer emissions, and displace toxic gasoline additives linked to cancer and groundwater contamination. Moreover, the industry now supports more than 852,000 American jobs. And if the renewable fuels industry grows enough, it has the potential to break the market power of the international oil cartel.

To combat this success, some in the fossil fuel sector spread myths about the performance of biofuels in modern engines, but years of data show the truth. Just this month, research from Argonne National Laboratory, the National Renewable Energy Laboratory and Oak Ridge National Laboratory demonstrated that high-octane ethanol blends can deliver more power and greater mileage than conventional gasoline. NASCAR mechanics have known that for over a decade, which is why they rely on ethanol-blended fuels to keep their engines running.

In short, there’s a world of difference between alternative energy done right and alternative energy done wrong. The innovative approach offered by the RFS works. It’s a proven solution that strengthens our energy security, combats harmful emissions, and generates tremendous economic advantages for U.S. workers and consumers. It remains the best path to a free market — the most effective tool to take the levers of power out of the hands of a hostile international cartel and put it into the hands of domestic producers who, through innovation and competition, are lowering the price of fuel and enhancing the energy security of the United States.

Read the original story here : Renewable Fuels Deserve A Place At The Pump

Ethanol Producer Magazine

By Mike Lorenz

Aug 19, 2016

Summer is coming to a close, which means people are wrapping up vacations, kids are back in school and the summer driving season is coming to an end. For many, the summer driving season simply means more people out on the road and generally higher gas prices, but for fuel retailers the period presents a special problem.

Back in 1990, Congress limited the amount of evaporative emissions from vehicle fuel at 9 pounds per square inch (psi) Reid vapor pressure (RVP) in the Clean Air Act. While pure ethanol has a 3 psi RVP, when combined with gasoline at low levels, the RVP of the total fuel blend exceeds 9 psi. To accommodate ethanol blends, Congress specified that fuel with 10 percent ethanol would receive a 1 psi RVP waiver, and extended that relief to blends below 10 percent. Unfortunately, EPA has shown no willingness to extend the waiver to blends above 10 percent, which severely restricts the sale of E15 during the summer driving season, June 1 to Sept. 15.

The restrictions placed on E15 due to the statutory RVP limits cause a number of problems for retailers who want to offer consumers a wide variety of choice at the pump. First off, it creates a gray area at our retail locations and leaves us with a menu of unappealing options. We either have to block off the hoses that pump E15, which confuses customers into thinking our facilities are broken, or sell E15 as a flex fuel, which limits the market for the fuel and isn’t explicitly regulated by the EPA. All of those options obviously are problematic and discourage some retailers from offering the fuel altogether simply to avoid having to deal with the hassle of making those costly adjustments in the summer. Having an obscure statute from 1990 preclude retailers from offering such an outstanding product, especially considering E15 actually has a lower RVP profile than E10, seems counterproductive and, frankly, silly. 

Furthermore, these RVP restrictions hurt consumers. At Sheetz, we take pride in offering our consumers many fueling options, which includes a cleaner burning, high-performance fuel that is better for the environment and saves consumers money. E15 clearly provides a great value to consumers and these restrictions confuse them or prevent them from accessing E15 altogether. When customers go to the pump any other time of the year, they see E15 at the dispenser, but when they go to fill up their cars in the summer, they see it presented as a flex fuel. It is understandably confusing for anyone who is not intimately familiar with these technical restrictions. In cases where retailers stop carrying the fuel entirely during the RVP season, consumers show up to the pump expecting to fill their cars with E15 as they’ve done all year, only to find it’s no longer offered. In the worst case scenario, when retailers choose not to offer E15 at all because of the summer hassle and financial constraints of complying with the RVP regulations, consumers are robbed of another gasoline choice at the pump during the other eight and one half months of the year without even knowing it.

Retailers and consumers are both hurt by E15 not being available for use with 2001 and newer vehicles during the busy summer driving season. All because of an archaic technicality from 26 years ago. Now that the summer driving season is coming to a close and Congress is reconvening, we urge you to reach out to your elected officials and ask them to remove this unnecessary barrier. It constricts retailer freedom and inhibits consumer choice. We know that consumers are more environmentally conscious than ever before and, at the end of the day, we want to help them make a positive impact on the environment by filling up with E15, and offer them savings at the pump. Tell your officials to vote yes on bills S. 1239 and H.R. 1736, which would extend the RVP waiver to ethanol blends above 10 percent so we can continue to expand the available fuel options for consumers across the country.

Read the original story here : It's Time To Address RVP

The Hill

By Jessie Stolark

Aug 9, 2016

A quiet revolution is taking place across the fruited plain. The total amount of U.S. land under production by American farmers is down-- not just over the last 50 or 100 years, but also over the last decade according to the U.S. Department of Agriculture. Despite that trend, the production of crops for food, feedstock, and bioenergy continues to rise. Yet a misleading campaign waged by the oil industry has many believing renewable bioenergy is leading to a massive destruction of wild prairies as farmers put more land under the plow.

Given the tremendous threat posed by climate change, it is vital that we set the record straight and unite behind solutions like renewable biofuels, including ethanol, that have been proven to reduce greenhouse emissions in the near- and long-term.

What the oil industry fails to mention is that, between 1980 and 2011, the amount of land needed to grow a bushel of corn shrank by 30 percent, the need for irrigation fell by 53 percent, and energy consumption dropped by 44 percent. Produced alongside each gallon of biofuels are co-products, including high-protein animal feed and corn oil. Meanwhile, fossil fuel companies are using more energy- and water-intensive ways to extract oil from tar sands and deep rock by pumping millions of gallons of fresh water, sand and chemicals to "frack" the rock. Midwestern farmland is also being purchase to strip the land for "frack sand," which destroys prime agricultural acres -- for good.

From a climate perspective, there is simply no question that biofuels mantain a clear advantage over oil. The best available science shows that biofuels hold enormous potential to immediately reduce greenhouse gas emissions. Analysis from the Department of Energy's Argonne National Laboratory has shown that average lifecycle emissions from corn-based ethanol are 34 percent lower than those gasoline, even when taking potential land use changes into account. Some argue that we should be doubling down on vehicle electrification instead, but it's not an either or proposition. Liquid fuels will be needed for a while yet --- for the existing stock of cars, as well as for trucking, shipping and aviation. These fuels should be low-carbon and sourced from renewable sources : the best option is bioenergy feedstocks.

Looking into the future, according to the Department of Energy's recent 2016 Bilion Ton Report, most bioenergy feedstocks will come from inedible plant material such as agricultural residues and from energy crops such as perennial grasses, short-rotation trees, and algae. Biofuels derived from these sources can yield emission reductions of 90 percent of more when compared to gasoline. Recent research has shown that energy crops can also help reduce erosion and runoff, as well as store additional carbon in the soils.

But the development of these advanced fuels and feedstocks depends on the continued expansion of the broader biofuels supply chain, as well as the research and development efforts of current biofuel producers. A pull-back on the policies  that support their development would be devastating. 

Oil's latest argument against biofuels is over land use. One recent study from researchers at the University of Wisconsin-Madison finds that land is being converted to biomass crop production at alarming rates, and places the blame squarely on biofuel policies. Researchers at Argonne National Laboratory, Oak Ridge National Laboratory and the University of Illinois at Chicago raised questions on these findings, stating that there was "no indication that type of transition has occured on a large scale." When examining dirvers of land use change, dietary shifts and other demands, including loss of farmland to urban development, must also be weighed.

It is true that biofuels production has grown tremendously while acreage devoted to conversation programs for farmland has dropped precipitously. However, this is not due to biofuels production, but instead to a dramatic drop in federal support for conservation programs. For example, acreage eligible for the USDA's Conservation Reserve Program (CRP) fell from 37 million acres in 2007, to 24 million acres in 2016. Lack of acres does not translate to lack of farmer interest; in the most recent CRP enrollment period, demand for the program outstripped availability by 1.4 million acres.

In the next year, Congress will likely debate the 2018 Farm Bill, and strong support for conservation programs should be prioritized alongside continued support for the Renewable Fuel Standard (RFS), which ensures increased production of low-carbon biofuels from a variety of sustainable feedstock sources. Already, the RFS has been an effective tool in spurring the development of biofuels sourced from crop wastes.

Through the ingenuity of American farmers and researchers, biofuels and environmental protection can go hand-in-hand- but only with strong Congressional support for sustainable biofuels production, not capitulation to the oil industry.

Read the original story here: In Pitting Biofuels Against The Environment, Only Clear Winner Is Oil

 

Owatonna People's Press

By William Morris

Aug 15, 2016

CLAREMONT - The Ethanol industry looks very different from what it was when Al-Corn Clean Fuels first opened its doors.

The Claremont ethanol cooperative celebrated its 20th anniversary Aug 2 with a banquet for shareholders, industry partners and government respresentatives, as well as promotions for E85 ethanol fuel at several Owatonna gas stations.

Al-Cron CEO Randy Doyal said the night was an occasion to reflect on where the cooperative has been and the partnerships it has forged. 

"We had displays of all the organizations we work with like American Lung (Association), Minnesota Corn Growers, Renewable Fuels Association, Minnesota Bio-Fuels Association and Renewable Products Marketing Group," he said.

Speakers included Randy Schwake, a Claremont banker involved in the formation of Al-Corn; former Minnesota House Speaker Steve Sviggum; Doyal; Pat Buckwalter of the Al-Corn board; and keynote speaker Bob Dineen, President and CEO of Renewable Fuels Association. 

Doyal, who serves as chair of the RFA board, said Al-Corn and the industry as a whole are in the midst of retooling to meet future demand and market conditions. 

"The next 20 years will see more ethanol use around the world as other countries start to address their air issues," he said. "Out industry will consolidate. We are positioning our company to survive and to remain more in control of our own destiny."

A big part of that is a planned $146 million expansion announced last year, which Doyal said currently is in the process of acquiring permits to begin construction later this year. The expansion will allow for greater economies of scale and let the cooperative better support its member farmers.

"We want to make sure our farmer owners continue to get the value of processing," he said. "This is too important for our rural communities. It is too important for our state and our environment."

Doyal said the industry is keeping watch on policy developments at the federal level, and in particular the Renewable Fuel Standard that mandates increased level of renewable fuels such as ethanol, which both leading presidential candidates, Hillary Clinton and Donald Trump, have said they plan to maintain or increase. And he said that the future looks bright for both Al-Corn and ethanol producers in general.

"Our industry continues to improve," he said. "Our core values at Al-Corn are collaboration and constant improvement. Our history really shows that."

Read the original story here : Al-Corn Celebrates 20 Years, Looks To Future

Renewable Fuels Association

August 12, 2016

America’s farmers are poised to harvest a record corn crop this fall and achieve the highest yield per acre in U.S. history, according to U.S. Department of Agriculture (USDA) estimates released today. Meanwhile, the U.S. ethanol industry is on pace to produce a record amount of clean-burning renewable fuel, according to Department of Energy (DOE) projections released Tuesday. The Renewable Fuels Association (RFA) said the government reports highlight the importance of getting the Renewable Fuel Standard (RFS) back on its statutory track in 2017.

Today’s USDA report projects the 2016 corn crop at 15.15 billion bushels, with a record average yield of 175.1 bushels per acre.

“U.S. farmers have again risen to the challenge to meet all demands for feed, food and fuel,” said Bob Dinneen, president and CEO of the RFA. “They should be congratulated for producing what is primed to be the third record-breaking crop in just the last four years. The innovation, technology adoption, and productivity we’ve seen in the corn sector over the past decade has been nothing short of astounding.”

Corn ending stocks for the 2016/17 marketing year are projected at 2.4 billion bushels — the highest in 29 years. Meanwhile, prices are expected to average just $3.15 per bushel, the lowest in 10 years. Global grain supply is also set to establish a new record and grain stocks are likely to hit historic highs. U.S. ethanol is expected to consume just 2.9 percent of world grain supply on a net basis. Dinneen said today’s USDA estimates “snuff out the last flickering embers of the outrageous food vs. fuel debate.”

As harvest ramps up in fields across the country, corn demand from the ethanol sector is ramping up as well. DOE projects 2016 ethanol production will average 980,000 barrels per day — or 15.1 billion gallons. The agency also is projecting record ethanol consumption of 14.3 billion gallons. “This is shaping up to be an historic year,” Dinneen said. “Just a decade ago, visionary leaders in the corn and ethanol industries established a goal to produce 15 billion bushels of corn and 15 billion gallons of ethanol by 2015. Ten years later, our nation’s farmers and ethanol producers have made that bold vision into a reality.”

However, Dinneen warned, the Environmental Protection Agency’s (EPA) disappointing proposal for 2017 Renewable Fuel Standard (RFS) volumes is exacerbating the predicted drop in corn prices and farm income this year. EPA’s proposal to needlessly reduce the 2017 RFS requirement for “renewable fuel” from 15.0 billion gallons to 14.8 billion gallons reduces demand for corn at a time when corn stocks are rising and prices are slumping to levels below the cost of production.

“This is not the time to undermine demand for corn and tie the hands of the American farmer. Farmers and ethanol producers made investments and business decisions based on the 2007 law that expanded the RFS, and they expected EPA to follow Congress’ intent in implementing the program,” Dinneen said. “EPA’s proposal is limiting market opportunities for U.S. farmers at a time when the agricultural economy needs a boost. We again urge EPA and the Administration to finalize a rule that truly gets the RFS back on track and supports rural America.”

Read the original story: Record Crop, Record Ethanol Production Underscore Importance of Getting RFS Back on Track

ENERGY.AGWIRED.COM

August 9, 2016

By Joanna Schroeder

The ethanol industry packed the room for the opening night reception of the 20th annual American Coalition for Ethanol (ACE) Conference in Minneapolis, Minnesota where Minnesota Bio-Fuels Association Executive Director Timothy Rudnicki talked about the booming ethanol industry in his state.

“Within the last year and a half, we’ve seen more E15 stations become available, and that means more fuel choice for consumers,” said Rudnicki. “What we’ve found for the most part is when consumers have a choice between a clean, green renewable fuel versus petroleum they will take the renewable fuel.”

Rudnicki says because education is so important, they have developed new communications tools, such as a biofuel station locator app. “We’ve also implemented some direct consumer campaigns using social media tools to alert consumers to where retailers are having special events to promote E15 and higher blends, but more importantly, to give consumers the confidence in knowing what they’re buying is good for their engines, the environment, and the economy – and for the most part, ten cents less per gallon on E15 compared to regular,” said Rudnicki.

Read the original story and listen to the interview: #ACE2016 Hears about Booming Minnesota #Ethanol Industry

Motortrend

Aug 8, 2016

By Kelly Pleskot

Nissan e Bio Fuel Cell Prototype Vehicle 014

Photo credit : Nissan Motor

Just in time for the Olympic Games, Nissan is testing a special type of fuel-cell vehicle on the streets of Brazil. The model, based off the NV200 van, runs completely off bio-ethanol and offers a driving range of more than 372 miles. 

It doesn't work like other fuel cells which have a built-in tank for storing hydrogen. Instead, the Nissan e-Bio Fuel Cell uses bio-ethanol pumped into the vehicle to generate electricity through a solid-oxide fuel cell. 

The model generates electricity by transforming bio-ethanol into hydrogen through an electrochemical reaction from a reformer and atmospheric oxygen. The electricity generated in this process powers the vehicle. Reforming ethanol into hydrogen produces some carbon dioxide, although the same is true for the way other fuel cells works. But Nissan says the process of growing plants used to produce the bio-ethanol cancels out the effects of the emissions. Bio-ethanol, mainly sourced from sugarcane and corn, is widely available in North and South America, which Nissan says is another major benefit to this fuel source. 

"The e-Bio Fuel-Cell offers eco-friendly transportation and creates opportunities for regional energy production...all the while supporting the existing infrastructure," Nissan president and CEO Carlos Ghosn said in a statement.

The Nissan e-Bio Fuel-Cell offers a 30-liter tank for ethanol and a 24-kilowatt-hour battery. Given the fact that it's just a prototype for now, its specifications are subject to change should Nissan bring it to market. Nissan says the e-Bio Fuel-Cell is the first vehicle in the world to use a solid-oxide fuel cell. Solid-oxide fuel cells use a solid, ceramic electrolyte rather than a liquid electrolyte, and Nissan says it's highly efficient. 

Read the original story here : Nissan Debuts Fuel-Cell Prototype Powered By Bio-Ethanol