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EIA Increases Ethanol Production Forecast for 2019

Ethanol Producer Magazine

November 7, 2018

By Erin Voegele

The U.S. Energy Information Administration has released the November edition of its Short-Term Energy Outlook, maintaining its October forecast for 2018, but increasing its ethanol production forecast for next year.

The EIA currently predicts the U.S. will produce an average of 1.05 million barrels of ethanol per day this year, unchanged from its October STEO. Production averaged 1.04 million barrels per day last year. On a quarterly basis, the EIA now predicts that ethanol production will average 1.05 million barrels per day during the third quarter of 2018, up from its October prediction of 1.04 million barrels per day for the quarter.

For 2019, the EIA now predicts ethanol production will average 1.04 million barrels per day, up from the 1.03 million barrel per day prediction included in the October STEO. On a quarterly basis, production is expected to average 1.03 million barrels per day during the first quarter of 2019, increase to 1.04 million barrels per day during the second quarter, fall to 1.03 million barrels per day during the third quarter, and return to 1.04 million barrels per day during the fourth quarter.

Ethanol consumption is currently expected to average 940,000 barrels per day in 2018, level with 2017 consumption. Next year, consumption is expected to increase to 950,000 barrels per day.

The EIA’s most recent weekly data shows ethanol production averaged 1.068 million barrels per day the week ending Nov. 2, up from 1.059 million barrels per day the previous week.

The EIA’s most recent monthly data shows the U.S. imported 304,000 barrels of ethanol in August, primarily from Brazil. During the same month, the U.S. exported 2.942 million barrels of ethanol, primarily to Canada, the Netherlands, and United Arab Emirates.

Read the original article: EIA Increases Ethanol Production Forecast for 2019

Sharing The Octane Advantage Of Ethanol With World Markets

U.S. Grains Council

November 1, 2018

News Release

Global markets vary greatly in their experiences with ethanol, from fully realizing the advantages of increased ethanol use to continued reliance on expensive and environmentally harmful fossil fuel additives. The U.S. Grains Council (USGC) wants countries around the world to look to ethanol when their government and industries think about octane.

Depending on the octane of the base gasoline in the fuel, refiners use additives to boost octane levels to enhance engine performance. Many international markets rely on methyl tertiary butyl ether (MTBE) as an additive despite water quality problems and associated clean-up costs exhibited in the United States and other countries. Additionally, refiners often use aromatics such as benzene, toluene and xylene, collectively known as BTX. Aromatics have high levels of particulate matter emissions that negatively impact human health and are expensive.

With one of the highest octane ratings of any fuel additive at 113 AKI (anti-knock index, which measures the fuel’s ability to resist knocking during combustion), ethanol provides economic benefits by boosting octane ratings of subgrade gasoline. Markets that do not allow ethanol blending within their national fuel specifications do not capture this octane advantage, cost-savings and other benefits of ethanol for their fuel oxygenation requirements, typically due to the lack of policies effectively governing national fuel standards. Many of these governments simply do not know a reliable alternative to MTBE or aromatics exists and is readily available.

From a straight price perspective, U.S. ethanol is cheaper than other components of gasoline – including MTBE and aromatics – and in some cases, gasoline itself. Using ethanol also reduces refining costs, allowing use of a sub-grade of gasoline, adding more savings. Octane value and cost savings are especially important in price-sensitive markets where fuel demand is more elastic.

Countries with excess refining capacity stand to further benefit from using ethanol in the finished gasoline product to other countries. South Korea and India both have significant refining sectors to service their own markets and export finished product to other markets. Singapore is also a major transshipment point for other countries in the Asian region, including Indonesia, which has annual gasoline demand of nearly 12 billion gallons.

The Persian Gulf, the United Arab Emirates, Oman and other European countries with excess oil refining capacity are exporting finished gasoline products to the West Africa region. These countries are taking advantage of the octane benefits of ethanol and passing them on to customer countries.

In its work to promote ethanol use globally, the Council encourages countries without the ability to produce their own feedstock to develop biofuels policies that include a role for ethanol imports. Countries that produce ethanol domestically can also benefit from trade that helps reliably fulfill the total ethanol demand needed to meet national fuel mandates.

More than 65 countries already have biofuels policies in place, with 11 markets announcing significant policy expansions in the last year. The Council continues to educate ministry and industry officials on the benefits of using ethanol and developing policies with a role for trade.

Read the original release: Sharing The Octane Advantage Of Ethanol With World Markets

Corn Growers Dispute Land Use Petition Claims

Energy.AgWired.com

November 2, 2018

By Cindy Zimmerman

Environmental groups filed a petition with EPA this week claiming that “millions of acres of wildlife habitat” have been converted to corn and soybean crops to produce biofuels under the Renewable Fuel Standard, based on a June report to Congress, which offered no specific conclusions about land use change related to biofuels production.

The petition claims that previously uncultivated land is being used to grow biofuels feedstocks, even though the amount of land used for corn and soybean production has declined since the RFS was instituted.

“The acreage data is very clear: farmers are planting fewer acres to corn today than we did when the Renewable Fuel Standard (RFS) was expanded,” said National Corn Growers Association (NCGA) president Lynn Chrisp. “And it’s not just corn acres that have fallen. The area planted to principal crops is shrinking nationwide. The reality of what is happening on today’s farms is not accurately portrayed in the petition.”

NCGA notes that farmers planted fewer acres to corn in 2018 (89.1 million) than they did when the RFS was expanded in 2007 (93.5 million). During that same time, ethanol production expanded from 6.5 billion gallons to 15.8 billion gallons. Overall, the area planted to principal crops in the U.S. has fallen from 328.6 million acres in 2000 to 322 million acres in 2018, according to the U.S. Department of Agriculture data.

Meanwhile, the average corn yield has increased by more than 25 bushels per acre since 2007 and doing so with fewer resources and improved farming practices. Farmers have doubled yields while the cutting use of primary nutrients per bushel in half between 1980 and 2014.

Chrisp says they welcome new dialog with environmental organizations. “Environmental groups recognized the emissions reductions and health benefits of biofuels when they backed the RFS. This energy and environmental policy has been a success, delivering GHG reductions, improving air quality, saving consumers money at the pump and reducing our dependence on oil,” said Chrisp.

Read the original article: Corn Growers Dispute Land Use Petition Claims

RFA Pushes Back on API E15 Push Poll

Energy.AgWired.com

October 30, 2018

By Cindy Zimmerman

The Renewable Fuels Association (RFA) is pushing back on a poll released yesterday by the American Petroleum Institute (API) that claims most Americans are concerned about approving E15 to be sold year round.

“API’s newest poll is so manipulative it can’t even be called a ‘push poll.’ It’s more like a ‘shove poll’ that bullies respondents into answering the questions exactly the way API wants them answered. These results are meaningless and do nothing to objectively represent consumer opinion on E15,” said RFA President and CEO Geoff Cooper.

API’s poll claims to show that 69-83 percent of voters have concerns about E15, but questions asked in the poll clearly lead the respondents by making statements that are either totally false or misleading at best. For example, API says “83 percent of voters are concerned that consumers could shoulder higher pump prices if service stations are forced to invest in new infrastructure to accommodate certain types of fuels.” Here is how the question was worded (emphasis added):

There are some people who think the government should force service stations to carry higher levels of ethanol such as E15. According to a study by the Petroleum Equipment Institute, service stations might have to buy new storage tanks and pumps and make other investments in their properties to carry E15. These increased expenses could increase the cost of gasoline. How concerned are you that government mandates that force service stations to carry certain types of fuel could end up costing consumers more when they fill up?”

The question is based on a totally false premise. The federal government is not considering any mandate that would force stations to sell or consumers to buy any kind of fuel.

Cooper adds that since E15 was approved as a motor fuel in 2011, there have been no reported cases of consumer misfueling or engine damage related to the fuel blend. “While API continues to spread false and misleading information about E15, American drivers deserve to know the truth—E15 is a cleaner, lower priced, higher octane fuel that will soon be available year-round and nationwide,” said Cooper.

Read the original article: RFA Pushes Back on API E15 Push Poll

Novozymes Reports Sales Growth For Bioenergy Segment

Ethanol Producer Magazine

October 24, 2018

By Erin Voegele

On Oct. 24, Novozymes released third quarter 2018 financial results, reporting a significant growth in sales for its bioenergy segment. The company said strong growth in demand for enzymes in the conventional biofuel market helped drive the increase.

Overall, Novozymes reported 5 percent organic sales growth for the third quarter, when compared to the same period of last year. For the first nine months of the year, sales grew by 4 percent organically.

“We delivered solid earnings and organic revenue growth of 5 percent in the third quarter and 4 percent after the first nine months,” said Peder Holk Nielsen, president and CEO of Novozymes. “This is overall satisfactory, and we increase the outlook for net profit growth. Despite recent challenging markets in the Middle-East, we maintain our 4-6 percent organic revenue growth guidance, albeit with the likelihood that we will close the year toward the lower part of the range.”

For the first nine months of the year, Novozymes reported flat sales for its household care division. Sales for the food and beverages division grew by 4 percent. Sales in bioenergy were up 14 percent, while sallies in agriculture and feed increased by 5 percent. Sales in the technical and pharma division, however, fell by 7 percent.

Bioenergy accounted for 19 percent of the company’s sales during the first three quarters of 2018, with household care, food and beverage, agriculture and feed, and technical and pharma accounting for 32 percent, 29 percent, 14 percent and 6 percent, respectively.

Within the bioenergy segment, Novozymes reported sales grew by 14 percent during the first three quarters of 2018 and 15 percent during the third quarter. The company attributed the increase to strong growth momentum within enzymes for conventional biofuels.

“Sales of enzymes for conventional biofuels benefit from Novozymes’ strong technology base and innovative product portfolio,” said Tina Sejersgård Fanø, executive vice president of agriculture and bioenergy at Novozymes. “And our recently launched yeast product, Innova Drive, is increasingly contributing to growth. In early October, we launched yet another yeast technology, Innova Lift, and this offering strengthens an already broad product portfolio.”

Sejersgård Fanø said U.S. ethanol production grew by an estimated 2 percent during the third quarter, but noted trends with elevated inventories and tight margins for ethanol producers are unchanged. She also noted that the Latin American market is performing well, with Brazilian producers expanding into corn ethanol production. “A number of plants are operating—with more expected to come onstream over the next few years,” Sejersgård Fanø said.

She also addressed progress with E15 in the U.S. “We are happy to see that E15 in the U.S. now appears more likely to be implemented by the Environmental Protection Agency; there are still some legislative hurdles to be overcome, but longer term this is a good supportive measure for the U.S. ethanol industry, for Novozymes, and for the environment,” Sejersgård Fanø said.

Moving forward, Novozymes indicated that it expects organic sales growth in the bioenergy segment to be driven primarily by new product launches, increased penetration from innovation, and growth from outside the U.S. market. The company said it expects U.S. production for 2018 to be up slightly from 2017.

Read the original article: Novozymes Reports Sales Growth For Bioenergy Segment

Saudi Arabia Shows Need to End Addiction to Middle Eastern Oil

October 23, 2018

By Jim Talent

Following the mysterious death of columnist Jamal Khashoggi, Washington was hit with a stark reminder that America remains glaringly vulnerable to economic threats from the oil oligarchs of the world. Saudi Arabia quickly issued a warning that any sanctions will be met with “greater action” and that it plays a “vital role” in the global economy.

The implication was clear. Any attempt to hold the Saudi government accountable could lead to a crippling spike in oil prices, care of the largest oil producer in the Middle East. Meanwhile, American fortunes remain subject to the global politics of oil. Without Saudi cooperation, it would be all but impossible for President Trump to press ahead on efforts to neutralize hostile forces in Iran. Why? Only Saudi Arabia would be able to replace Iranian crude exports locked in by American sanctions.

Petroleum boosters like to claim that fracking broke our addiction to foreign oil, but as the Energy Department pointed out this month, the changing trade balance is still dominated by crude oil imports. Net crude imports account for a fifth of total consumption in the United States. The need for homegrown alternatives remains as strong as ever, particularly as fuel prices climb back to nearly $3 per gallon.

Fortunately, policymakers have at least one time tested tool to shield American consumers from international intrigue, the renewable fuel standard, a bipartisan policy I championed in the Senate back in 2005. This federal program allows homegrown biofuels to supply a growing share of our energy needs, which is currently about 10 percent of all motor fuel. The renewable fuel standard has been successful in protecting American energy security, and at no cost to consumer or taxpayers.

Conventional ethanol is a highly competitive fuel, costs about $1.30 per gallon, and it gets no federal subsidies or tax breaks. Every gallon added to the fuel mix holds down prices, while providing an ecofriendly octane boost for better engine performance, replacing toxic additives like lead. Ethanol also cuts down on smog and reduces carbon emissions by an average of 43 percent, according to federal data. Best of all, the United States is the top producer and exporter of ethanol in the world, and no other nation can set the prices paid by American drivers.

There are more than 200 ethanol plants distributed all throughout the heartland, creating hundreds of thousands of good jobs in rural areas where biofuel production is a pillar of the farm economy. Nearly every dime spent on ethanol stays right here in the United States. In a free market, higher ethanol blends like E15 would be standard options at the fuel pump, giving every consumer an opportunity to save 5 cents to 10 cents per gallon. But while more retailers are adding options, the fuel supply chain remains tightly controlled by a few oil companies and the foreign cartel. They oppose consumer access to E15 for the same reason they oppose the renewable fuel standard. They know that consumers, not petroleum producers, win when drivers have a choice at the pump.

That is why President Trump has proclaimed his support for the renewable fuel standard and pledged to lift seasonal Environmental Protection Agency restrictions on the sale of E15. A boost for American biofuels is a blow against forces that would wield oil as a weapon against our national interests. Congress should rally behind the effort and fight back against efforts to cheat consumers out of affordable and reliable energy options.

Jim Talent, a former Republican senator and representative from Missouri, championed the creation of the renewable fuel standard in 2005. He is co-chairman of Americans for Energy Security and Innovation, a member of the U.S.-China Economic and Security Review Commission, and a senior fellow at the American Enterprise Institute and the Bipartisan Policy Center.

Read the original article: Saudi Arabia Shows Need to End Addiction to Middle Eastern Oil

Dems Ask Trump Administration to Honor Renewable Fuel Standard Commitments

Congressman Ruben Gallego

October 16, 2018

Press Release

WASHINGTON, DC – Today, Reps. Ruben Gallego (D-AZ) and Danny Davis (D-IL) led a letter signed by 17 of their colleagues to the Environmental Protection Agency (EPA) expressing concern over the Trump Administration’s widespread issuance of waivers to the Renewable Fuel Standard (RFS).

With transportation emissions representing the bulk of U.S. greenhouse emissions, the decision to flout RFS standards could have a devastating impact on our climate and public health outcomes and result in higher prices for consumers at the gas pump.

“With the technology for cleaner, safer, and more economical fuels available, there is simply no reason not to continue our progress and commitment to renewable fuels,” said Rep. Gallego. “The Trump administration’s decision to abandon RFS goals has already set back our progress by 5 years. We are urging the EPA to reverse this harmful decision.”

The signed letter can be found here.

Read the original press release: Dems Ask Trump Administration to Honor Renewable Fuel Standard Commitments

Ace Ethanol Begins D3MAX Plant Construction at Stanley Wisconsin Facility

October 17, 2018

Press Release

Combining both D3MAX and Whitefox Technologies, the Stanley ethanol plant is expected to become one of the most efficient ethanol facilities in the world.

D3MAX, LLC and Ace Ethanol, LLC announced they have started construction of the first D3MAX facility at Ace Ethanol’s facility in Stanley, Wisconsin. Ace Ethanol will be the first ethanol plant to integrate the patented D3MAX technology with its existing corn dry mill. Earlier this year, Ace Ethanol received approval from its board of directors and members to proceed with the design and construction of the corn kernel fiber-to-ethanol plant and now they have started construction of the D3MAX facility. “The team at D3MAX along with the Ace Ethanol team, is extremely excited to start building the first commercial-scale facility,” says, Mark Yancey, chief technology officer at D3MAX. The integrated facility will also employ membrane-based ethanol recovery technology supplied by Whitefox Technologies, resulting in significant energy savings for the integrated facility. Fagen Inc. is the contractor who was selected to build the new D3MAX facility.

The companies working on the D3MAX detailed design and build were selected earlier this year by the planning team. “We have assembled the best team with the best technologies to build the first commercial-scale D3MAX plant,” says Yancey. “We are employing a fully integrated design at the Ace plant which will make the facility one of the most energy efficient ethanol plants in the US with the highest ethanol yield per bushel. The combined facilities will be so efficient that the energy use of the new integrated facility will be approximately the same as the current Ace ethanol plant. We are very excited to make this announcement and begin the construction of what we believe will be the new benchmark for the industry.”

According to Yancey, the D3MAX process is the only corn kernel fiber-to-ethanol process that will not require an independent engineer to validate the cellulosic ethanol production every 500,000 gallons of cellulosic ethanol produced. With the D3MAX process, cellulosic ethanol gallons can be measured directly avoiding the cost of re-certification required by EPA for co-processing and in-situ corn kernel fiber processes. Currently, all other corn kernel fiber technologies require costly re-certification every 500,000 gallons.

To learn more about D3MAX visit: www.D3MAXLLC.com.
To learn more about Ace Ethanol visit: www.aceethanol.com.

About D3MAX LLC:
D3MAX is a technology company formed by BBI International to license our patented cellulosic ethanol technology to dry mill ethanol plants in the US and Canada. Our cutting edge technology converts corn fiber and residual starch in distillers grains to cellulosic ethanol. This is a 1.5 billion gallon per year market and we intend to capture a significant portion of the market by licensing our D3MAX technology to existing ethanol plants.

About Ace Ethanol LLC:
Ace Ethanol LLC, is an ethanol production facility built by local investors in Stanley, Wisconsin. Each year the facility takes in more than 17 million bushels of corn, resulting in an output of approximately 50 million gallons of ethanol, 118,000 tons of DDGS, 8,000 tons of distillers corn oil, and 65,000 tons of carbon dioxide. The facility has a storage capacity of two million bushels on site.

Contact Information
Mark Yancey
This email address is being protected from spambots. You need JavaScript enabled to view it.
701-738-4924

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Next Yeast Product Lifts Yields, Robustness

Press Release

October 9, 2018

Novozymes today launched its next yeast technology, Innova Lift, for the starch-based ethanol industry. The product follows the launch earlier this year of an ambitious yeast platform, Innova, and the first product, Drive.

“We are continuing to deliver on our promise to quickly bring innovative yeast and enzymes to a market that is clearly looking for exactly that,” says Brian Brazeau, Novozymes’ Vice President for Biofuels Commercial. “Lift targets ethanol plants with long fermentation times – delivering greater tolerance to common stressors such as high temperature and organic acids.”

An ethanol plant’s fermentation is a crucial part of securing better yields. However, the fermentation process is also tricky; even small spikes in temperature or organic acid levels can cause disruptions. Having the opportunity to use a robust yeast can help producers meet these two key challenges.

Innova Lift expresses a glucoamylase that is two times more effective at converting difficult-to-reach starch. When paired with advanced enzyme solutions, Lift also has the potential to significantly increase ethanol yields, reduce fermentation risks and eliminate costly inputs, while improving performance reliability.

Until now, yeast strains have remained largely unchanged

Novozymes’ new yeast platform, Innova, has been founded on new S. cerevisiae yeast – utilizing proprietary methods to enhance its ability to withstand the rigors of today’s ethanol production processes and goals.

“The ethanol industry has clearly been longing for new and reliable innovation for a very long time, not just updates of old products,” Brazeau adds.

Numerous ethanol plants have begun using Novozymes’ yeast since the introduction of the Innova platform and are realizing the benefits in productivity.

“By leveraging the synergies of our enzymes, yeast, and technical services, Novozymes has reset performance expectations for yeast and fermentation by delivering the most advanced and useful solutions, based on customer needs,” says Brian Brazeau.

Why is yeast vital for ethanol production?

Yeast converts raw materials into ethanol. Corn goes into the plant and is broken down by enzymes to prepare it for fermentation. During fermentation, yeast is added. The yeast consumes the raw materials and releases ethanol and carbon dioxide. Ethanol producers spend a lot of time and energy ensuring that the right conditions exist for yeast to thrive. The stronger and more efficient the yeast, the better able it is to tolerate production stresses and generate ethanol – improving productivity and profitability.

Innova Lift: Key numbers

-Lift is targeted to plants with longer fermentation times, generally 57 hours or more – delivering greater tolerance to common causes of yeast stress, the opportunity for better yields, and eliminating costly yeast food, which is common amongst competitive cream yeast.

-Lift remains effective through fermentation temperature spikes up to 98°F (36.7°C) – significantly higher than the 94°F that most other yeasts can tolerate.

-Producers can eliminate downtime, cut cooling costs and maximize the plants’ efficiency, whilst achieving up to 2-4% better yields, compared to conventional dry yeasts.

Read the original press release: Next Yeast Product Lifts Yields, Robustness

Trump Orders Start of Process to Allow E-15 Fuel Sales Year-Round

October 8, 2018

By Mike Hughlett and Jim Spencer

President Donald Trump has directed the Environmental Protection Agency to begin a rule-making process that would lead to year-round sales of fuel that is 15 percent ethanol.

The move has long been sought by Minnesota corn farmers who sell part of their crops to ethanol producers.

The president’s order is designed to help the country’s agricultural sector, as well as the economy as a whole, but was “not directly related to climate change,” a senior White House official told reporters on a call Monday.

E-15, as 15 percent ethanol is known, is currently available eight months of the year, while 10 percent ethanol is available all year. Summer is when the annual ban on E-15 sales kicks in under current regulations, which were conceived as anti-pollution measures but that the ethanol industry says are outdated and unnecessary.

E-15 usually costs 10 cents less per gallon than E-10.

Moving E-15 to a 12-month sales schedule should make it easier to sell and distribute the blend, which is better for the environment and will provide more of a market for corn, supporters say.

“It is a huge, huge deal,” said Brian Thalmann, president of the Minnesota Corn Growers Association and a corn and soybean farmer near Plato.

“This is right among our top priority issues,” said Tim Rudnicki, executive director of the Minnesota Biofuels Association.

Minnesota is the nation’s fourth-largest corn producer and also ranks fourth among states in U.S. ethanol production, annually churning out at least 1.2 billion gallons of the fuel. There are 19 operating ethanol plants in Minnesota, and the state is a top — if not the largest — provider of retail E-15 in the United States.

The Trump administration’s year-round E-15 sales rule is targeted for approval before the summer of 2019, the senior official said. Vehicles made after 2001 can use E-15.

The idea of year-round E-15 sales is anathema to the oil industry, which claims the EPA doesn’t have the authority to allow it and that E-15 is corrosive to automobile engines.

In addition to allowing full-time E-15 sales, the administration wants to change the ways refiners are able to buy and sell renewable identification numbers (RINs) that demonstrate that a refiner has complied with the federal renewable fuel standard (RFS). The RFS establishes how many gallons of ethanol individual refiners must produce each year.

Trump wants to stabilize the RINs market, where prices have varied from 3 cents to more than a dollar, the White House official said in the conference call.

RINs trade like currency and can help provide relief for refiners, usually smaller operations, who can’t afford — or don’t want to pay for — technology needed to make ethanol at their facilities. Anticipated changes will include limiting sales of RINs to refiners and importers, limiting the time RINs can be held and making owners of RINs disclose the size of their holdings if they exceed a certain amount.

Read the original article: Trump Orders Start of Process to Allow E-15 Fuel Sales Year-Round

RFA Elects Pacific Ethanol’s Neil Koehler as Chairman

Renewable Fuels Association

October 3, 2018

By Rachel Gantz

The Renewable Fuels Association (RFA) today elected Neil Koehler, co-founder and CEO of Pacific Ethanol, as chairman of the RFA board of directors. The election occurred at RFA’s annual membership meeting in Kansas City.

Koehler has more than 30 years of experience in ethanol production, sales, and marketing in the United States. Sacramento-based Pacific Ethanol operates nine biorefineries in Nebraska, Illinois, Idaho, California and Oregon with a combined operating capacity of 605 million gallons per year. Koehler was also the co-founder and general manager for Parallel Products, California’s first ethanol production company, which he sold in 1998. He has served on the RFA Board of Directors since 1992, and received RFA’s prestigious Industry Award in 2017. He succeeds Mick Henderson, general manager of Commonwealth Agri-Energy LLC, as RFA chairman.

“I am honored that my peers have elected me as the new RFA board chairman, and I am proud to be serving such an exceptional organization in this role,” said Koehler. “As board chairman, I look forward to providing leadership in our industry at this pivotal point of growing the demand for high octane, low carbon ethanol through higher blends in the United States, and new export markets. I also wish to congratulate Geoff Cooper and Bob Dinneen on their new roles at the RFA and look forward to continuing to work with both of them to fulfill the association’s mission and objectives.”

“Neil has been an effective advocate for renewable fuels for three decades and I am excited to work more closely with him as chairman of the board,” said RFA President and CEO Geoff Cooper. “His experience and vision will be a tremendous asset to the organization, as we foster new opportunities to drive demand for American-made renewable fuels. RFA also owes a huge debt of gratitude to Mick Henderson for his exemplary service and leadership as chairman over the past two years.”

RFA also elected Jeanne McCaherty of Guardian Energy LLC as the board’s Vice Chair, and Charles Wilson of Trenton Agri Products LLC as the board Treasurer.

An entire list of RFA’s membership can be seen here.

Read the original press release: RFA Elects Pacific Ethanol’s Neil Koehler as Chairman

White House Mulls Limits On Biofuel Trading As Part of E15 Deal: Sources

September 27, 2018

By Jarrett Renshaw

The White House is considering imposing restrictions on trading of biofuel credits, hoping to discourage speculation and reduce costs for oil refiners to comply with U.S. biofuels policy, according to three sources familiar with the discussions.

The sources, who asked not to be named because they are not authorized to comment on the discussions, said an announcement could be made in coming weeks. The move would be part of a widely anticipated deal to help U.S. corn farmers and biofuels producers by lifting a ban on summer sales of higher ethanol blends of gasoline.

U.S. President Donald Trump has repeatedly said he supports lifting that ban on so-called E15 gasoline to help expand the market for corn. This could also bolster vulnerable Midwest Republican members of the U.S. Congress in competitive races heading into the November elections, and appease corn farmers stung by Trump’s escalating trade wars.

But lifting the ban could draw legal challenges from the oil industry, which worries such a move would eat into their market share.

The White House and the Environmental Protection Agency, which administers U.S. biofuels regulations, did not immediately respond to requests for comment.

The U.S. Renewable Fuel Standard requires refiners to blend increasing amounts of biofuels like ethanol into the fuel pool each year, or buy credits from competitors who do. Refining companies that must buy the credits have complained about volatile prices in recent years.

The White House is considering trade restrictions such as capping the number of credits a dealer can hold at 120 percent of their company’s annual compliance obligation, the sources said. It is also considering restricting certain parties from holding the credits for more than 30 days. Such moves could prevent credit traders from hoarding credits to pump up prices artificially.

Some refiners that have complained of high credit prices, such as like PBF Energy (PBF.N) and Valero Energy Corp. (VLO.N), may welcome such restrictions. But other fuel companies that have managed to land trading profits in the credit market are likely to oppose the plan.

Biofuel credit prices were near five-year highs last year, but have dropped sharply to their lowest since 2013, due mainly to the EPA’s expanded use of waivers freeing small refiners from their obligations.

Trump is expected to direct the EPA to seek a rule lifting the E15 ban during a trip to Iowa in October, sources told Reuters. The ban was put in place as an anti-smog measure, though studies have since shown its environmental benefits are limited. The rule would have to be fast-tracked to have it finalized before the next summer driving season.

This is not the first time Trump has waded into the debate over biofuels policy which pits two groups that have supported him against each other: farmers and refiners. He tried to broker a deal between the rival corn and oil industries earlier this year, but those efforts stumbled as the corn lobby dug in its heels against certain changes.

Read the original article: White House Mulls Limits On Biofuel Trading As Part of E15 Deal: Sources

Nebraska Will Test 30 Percent Ethanol Blend in State Vehicles

Omaha World Herald

September 25, 2018

By Joe Duggan

Nebraska will run 50 state-owned vehicles on a 30 percent ethanol blend to see how the corn-derived fuel performs in conventional engines.

The pilot program will monitor the effects of E-15 and E-30 blends on vehicle performance, fuel economy and emissions control systems in state vehicles, some of which will include Nebraska State Patrol cruisers. The fuel used in the pilot program will be supplied by Nebraska ethanol companies, according to a Tuesday press release from Gov. Pete Ricketts.

The vehicles will not be equipped with the “flex-fuel” technology that allows vehicles to burn fuels with various percentages of ethanol.

Engineering consultants from the University of Nebraska-Lincoln will help provide technical expertise during the project, and six fuel marketers agreed to provide access to the E-30 fuel in Lincoln, Grand Island and Norfolk. State officials obtained approval from the Environmental Protection Agency to conduct the pilot project.

Todd Sneller, adviser to the Nebraska Ethanol Board, said smaller municipal testing projects with E-30 have been conducted in South Dakota and Kansas. Anecdotal reports from those two locations did not reveal performance issues in the vehicles, he added.

The pilot program is expected to be launched in coming weeks.

Nebraska produces about 2.2 billion gallons of ethanol annually, making it the second-biggest ethanol state behind Iowa.

Read the original article: Nebraska Will Test 30 Percent Ethanol Blend in State Vehicles

Virgin Atlantic Announces World First in Race to Develop New Sustainable Aviation Fuel

September 13, 2018

By Richard Branson

Virgin has always been at the forefront of disruptive new technology and ideas, which help us do business differently and champion change. As an airline reducing carbon is a major priority at Virgin Atlantic, and we’ve already taken a number of steps to reduce CO2 emissions, including investing in our latest, new A350-1000 aircraft.

Now I’m excited to reveal that Virgin Atlantic’s low carbon fuel partnership with LanzaTech has taken a vital step forward. This October we will make history by using LanzaTech’s innovative new sustainable aviation fuel in a commercial flight for the first time.

The fuel will be used in one of our much-loved 747s on a flight from Orlando to London Gatwick, demonstrating the art of the possible, and taking a landmark leap towards making this ground-breaking new low carbon technology a mainstream reality.

The appetite for long haul travel is only getting bigger, and as airlines it’s our responsibility to deliver that in the most sustainable way possible. Since 2011, Virgin Atlantic has been working with LanzaTech to pioneer technology that captures and recycles carbon-rich industrial waste gases from steel mills into ethanol – gases that would otherwise go up the chimney into the atmosphere. The ethanol, in turn, can be used for a variety of low carbon products, including jet fuel.

Because it uses waste carbon, the LanzaTech jet fuel has a fantastic sustainability profile and has the potential to achieve >70 per cent lower carbon emissions compared to regular fossil jet, and no land or food competition issues. And because it uses a plentiful, affordable waste stream, this is set to keep the fuel price competitive with that of traditional jet. This means airlines like Virgin Atlantic will be able to buy and fly it routinely, and that is when the big carbon savings will come.

The future potential of this technology is enormous. LanzaTech estimates its process could be retrofitted to 65 per cent of the world’s steel mills, to produce nearly one fifth of all aviation fuel used each year, at a commercially viable price.

This exciting first flight is all about showing we’re ready for business. We are working with LanzaTech to turn this new fuel into a day-to-day reality, and want to secure the world’s first carbon capture and utilisation (CCU) commercial jet fuel production facility in the UK.

We’ve had some great support from the UK government so far. But we now need to turn this into firm government action on incentives and investor commitment, to help us accelerate towards building the world’s first full size plant producing jet fuel from waste carbon gases.

We are delighted to be able to use this flight to raise awareness, thank all our partners so far and call on others to help turn this tantalising tipping point into an exciting breakthrough in our joint fight against climate change. Head over to Virgin Atlantic and LanzaTech to keep up to date.

Read the original article: Virgin Atlantic Announces World First in Race to Develop New Sustainable Aviation Fuel

Virgin Australia Leads Trial Using Gevo’s Biojet in Brisbane

Ethanol Producer Magazine

September 13, 2018

By Erin Voegele

On Sept. 11, Virgin Australia announced the successful completion of a trial to deliver sustainable aviation fuel through Brisbane Airport’s general fuel supply system. Biojet used during the trial was supplied by Gevo Inc.

Working in partnership with the Queensland government, Brisbane Airport Corp., Gevo and supply chain partners Caltex and DB Schenker, Virgin Australia led the procurement and blending of biojet with traditional jet fuel for supply into the future infrastructure at Brisbane Airport.

According to Virgin Australia, the trial marked the first time that sustainable aviation fuel has been delivered through the general fuel supply system at any airport in Australia.

Gevo indicated its jet fuel was used to fuel approximately 195 domestic and international flights that departed from Brisbane Airport during the trial. Virgin Australia noted those 195 flights traveled more than 430,000 kilometers (267,190 miles) to destinations around the globe.

Virgin Australia Airlines Group Executive Rob Sharp, said the airline was proud to lead the delivery of sustainable aviation fuel into the fuel infrastructure at Brisbane Airport.“Virgin Australia is leading the way in the production and use of sustainable aviation fuel in Australia. We recognize that there is a great opportunity to develop a thriving sustainable fuels industry, which will help to reduce emissions and drive investment and jobs growth in Australia,” Sharp said.

“The successful completion of the trial at Brisbane Airport is the first important step in ensuring Australian airports and the fuel supply chain will be ready for the regular supply of sustainable fuels in Australia, he continued. “We would like to thank the Queensland Government and our partners for their involvement and look forward to fueling more flights departing from Brisbane Airport with biojet over the next 12-18 months.”

Patrick Gruber, CEO of Gevo, offered his congratulations and commented on the potential of biojet produced in Queensland. “Congratulations to Virgin Australia and the Queensland Government for their vision and leadership,” he said. “Gevo recognizes that Australia, and Queensland, in particular, have great potential to produce renewable low-carbon jet fuel from a variety of raw materials. The establishment of production capabilities for renewable jet fuel in Australia would not only be good for economic growth, leveraging the abundant raw materials, but more importantly it could lead to domestic jet fuel production which could reduce Australia’s dependence on imported jet fuel. We look forward to continuing to work with Queensland, Virgin Australia, feedstock suppliers, and other partners in Australia to make Queensland-based production of renewable jet fuel a reality."

Read the original article: Virgin Australia Leads Trial Using Gevo’s Biojet in Brisbane

House Members Advocate for Strong RFS, Year-Round E15 Sales

Ethanol Producer Magazine

September 19, 2018

By Erin Voegele

Reps. Kristi Noem, R-S.D., and Collin Peterson, D-Minn., leaders of the bipartisan Biofuels Caucus, led more than 20 House members in sending a letter to the U.S. EPA urging the agency to approve year-round E15.

The letter, dated Sept. 13, encourages Acting EPA Administrator Andrew Wheler and the Trump administration to reduce federal regulations on ethanol instead of implementing policies that work against farmers and slow the biofuels markets down.

Within the letter, the House members ask the agency to increase proposed renewable volume obligation (RVOs) for biomass-based diesel under the Renewable Fuel Standard and address the 48 retroactive small refinery hardship waivers the EPA approved for compliance years 2016 and 2017. Those 48 waivers effectively eliminated demand for 2.25 billion gallons of biofuel.

“The 2019 RVO targets and the success of the RFS will continue to be undermined if the EAP does not account for further waivers,” the House members said in the letter. “We urge the EPA to put an end to these secret waivers until a process is established to make the name of the refinery, the gallons waived, and other relevant information publicly available. Additionally, accounting for any 2019 waived gallons in the final rule would help ensure biofuel production is not harmed by retroactive refinery exemptions.”

“Instead of advancing policies that would hurt farmers and prevent market growth of ethanol, we encourage you to also consider reducing regulations, like those that prohibit the year-round sale of E15,” the House members continued in the letter. “This regulatory change would increase consumption of biofuels while also lowering RIN prices, which eases implementation of the RFS and provide consumers with another choice at the pump.”

In addition to Noem and Peterson, the letter is signed by Reps. Dave Loebsack, D-Iowa; Rodney Davis, R-Ill.; Steve King, R-Iowa; Cheri Bustos, D-Ill.; Mark Pocan, D-Wisc.; Rod Blum, R-Iowa; Jeff Fortenberry, R-Neb.; Adrian Smith, R-Neb.; Darin LaHood, R-Ill.; Sam Graves, R-Mo.; Roger Marshall, R-Kan.; Tim Walz, D-Minn.; Ron Estes, R-Kan.; Don Bacon, R-Neb.; Richard M. Nolan, D-Minn.; Tom Emmer, R-Minn.; Mike Bost, R-Ill.; David Young, R-Iowa; Kevin Yoder, R-Kan.; Marcy Kaptur, D-Ohio; Andre Carson, D-Ind.; and Emanuel Cleaver II, D-Mo.

The Renewable Fuels Association has spoken out in support of the letter. “We greatly appreciate the support of the House Biofuels Caucus and welcome their voice to the growing chorus of consumers, farmers, and fuel choice advocates who all recognize the need for administrative action repealing this antiquated regulation today,” said Bob Dinneen, president and CEO of the RFA. “The year-round use of E15 would empower consumers to choose a higher octane, lower priced fuel, provide farmers struggling with chronically low commodity prices with an important value-added market, and send a strong signal to the marketplace to invest in the infrastructure and technologies that will lead to higher ethanol blends. The time to act is now.”

Growth Energy has also expressed support for the letter. “We’re deeply grateful to our rural champions for standing united behind a strong RFS and fighting for better, more affordable options at the fuel pump,” said Emily Skor, CEO of Growth Energy. “It is vital that the EPA uphold President Trump’s commitment to American biofuels and immediately tear down outdated regulatory barriers against the summertime sale of E15. Opening the market to year-round competition will help to revitalize farm income and restore growth in rural communities hit hardest by the agricultural downturn.”

“EPA waivers have destroyed billions of gallons of biofuel demand and cut a key market for U.S. farmers,” Skor continued. “To reverse the damage, the EPA should listen to rural lawmakers, restore those gallons, and unlock E15—a move that could create demand for two billion bushels of American corn.”

A full copy of the letter can be downloaded from Noem’s website.

Read the original article: House Members Advocate for Strong RFS, Year-Round E15 Sales

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