In the News

Reuters

August 21, 2019

by Humeyra Pamuk and Jarrett Renshaw

The agriculture and biofuel industries and their U.S. congressional allies ramped up pressure on the Trump administration on Wednesday over the relief he has given oil refiners from rules requiring use of biofuels.

Long-suffering American farmers, a constituency President Donald Trump is counting on in his campaign for re-election in 2020, have seen prices for crops hit hard by his trade war with China. This month, farmers also complained that a government crop report did not reflect damage from historic flooding this spring.

Farmers have been infuriated at the administration’s decision to grant waivers exempting 31 oil refineries from rules requiring them to blend corn-based ethanol into gasoline.

National and state trade groups along with their political allies delivered letters to the White House over the past 48 hours detailing the damage the waivers have caused the biofuel industry.

Democratic presidential hopefuls have used the refinery issue as a cudgel, echoing farm groups who say Trump has betrayed them by siding with Big Oil. Alarmed, the Republican president ordered his cabinet to find ways to boost biofuel demand.

The Iowa Soybean Association’s letter to the White House said the refining exemptions were forcing biodiesel producers to shut plants and lay off workers. Soybeans are a feedstock for biodiesel, so growers have been hurt.

“It’s becoming more difficult to understand why your administration is choosing to support higher profits for oil companies instead of providing some stability for farmers,” said the letter, signed by Lindsay J. Greiner, president of the state’s soybean association.

Iowa, the largest U.S. producer of corn and ethanol, is a swing state won twice by Democrat Barack Obama. The state switched to the Republican candidate in 2016, in part because Trump promised to support ethanol.

Cindy Axne, a Democrat who represents Iowa’s third district, wrote to the U.S. Environmental Protection Agency, urging its independent watchdog to investigate the small refinery waivers granted between 2016 and 2018.

“What we’re seeing with this administration is a dogged approach to allow the biggest fossil fuel players an opportunity to put more money back in the pockets of their large shareholders and take that money out of the pockets of hardworking farmers right here in Iowa,” Axne said at a news conference.

Republican Iowa Governor Kim Reynolds, a Trump political ally, along with the state’s head of agriculture, said in a letter to the EPA that rural families have borne the brunt of the trade war and are now being pinched by the refinery waivers.

“Ethanol consumption fell for the first time in 20 years, commodity markets are depressed, and many biofuel plants, including several in Iowa, have already slowed or halted production,” the letter said.

The battle between Big Oil and farmers over the U.S. biofuel policy has been a headache for Trump, who campaigned in 2016 as a champion for ethanol.

U.S. regulations require refiners to blend biofuels into the nation’s gasoline pool or buy credits to fund those refiners who can. Small refiners can get exemptions from the EPA if they prove compliance causes them hardship.

But Trump’s EPA expanded the waivers significantly, granting exemptions to refineries owned by the likes of Exxon Mobil Corp (XOM.N), Chevron Corp (CVX.N) and billionaire Carl Icahn. This saved refiners billions of dollars, but farmers complained that it has destroyed ethanol demand and forced plants to shut down or idle. Refiners maintain the waivers have not hurt overall demand for biofuels.

Biofuel producers and farmers say increasing the annual blending obligations for 2020, to be finalized in November, is the best solution, but oil refiners oppose that.

“The president will have an opportunity to make this right in the fall,” Gene Gebolys, chief executive of biodiesel producer World Energy. The company said last week it was closing plants in Mississippi, Georgia and Pennsylvania, and putting 100 workers on furlough.

“If he doesn’t, the voters will have an opportunity to make it right next fall. He’s made a promise throughout the Midwest and he’s broken the promise,” he said.

Read the original article: U.S. Farmers, Lawmakers Dial Up Pressure on Trump Over Biofuel Policy

The Hill

August 14, 2019

The question of how best to address environmental challenges has increasingly become a partisan flashpoint. So, when there is a green solution on which many Republicans and Democrats see eye-to-eye, as we do, it’s worth paying attention.

It’s time to take another look at biofuels.

The economic benefits to a hard-pressed farm economy are plain as day. Renewable energy – not just biofuels, but also wind and solar – are helping farmers and the rural economy survive in a year when the weather has been unkind, to say the least.

There is a lot of talk about reducing greenhouse gas emissions, but what’s needed are practical strategies to get there. Transportation is now the single greatest source of greenhouse gas emissions in the United States, making it critical to any carbon reduction strategy. But public policy to date has put almost the entire burden of the sector’s transformation on the nation’s vehicles. Shouldn’t the fuels they burn get equal attention?

Look at the numbers: Even a rapid transition to electric vehicles will leave hundreds of millions of conventional cars and trucks on U.S. roads for the next 30 years. According to a review of the relevant studies by USDA, Ethanol reduces carbon emissions by 40 percent or more compared to gasoline. Increasing ethanol blends from the 10 percent used today by most vehicles to 15 percent, now approved by the EPA, is an important start – but we can do more.

There are also major public health benefits. Today, the octane in your gasoline is supplied by a class of toxic chemicals called aromatics, which make up roughly 25 percent of every gallon of gasoline. Breathing in these toxins from car exhaust can cause cancer. Moreover, Frederica Perera, head of the Columbia Center for Children's Environmental Health, has shown through more than a decade of research that the worst emissions from those chemicals – polycyclic aromatic hydrocarbons, or PAHs – have effects on pregnant women and small children comparable to airborne lead: low birth weight, diminished IQ and cognitive and behavioral disorders. In addition, fine particle pollution from aromatics causes thousands of premature deaths each year.

Higher ethanol blends reduce the need for aromatics in gasoline. The reason is that ethanol has higher octane than gasoline and improves engine performance – with lower emissions. NASCAR vehicles run on 15 percent ethanol. Those blends should become standard nationwide.

We should also give more attention to the potential of higher blends of ethanol for engine performance. With wider availability, automakers could tune their engines to perform even better than they do today. Research at Oak Ridge National Laboratory has shown that mid-level blends of 25-40 percent, despite the lower energy content of ethanol, can match the vehicle fuel efficiency of cars running on today’s blends. Indeed, a multiyear study by the Department of Energy points to such blends as the best way to optimize vehicle and fuel performance. Blends of 30 percent are being used by the city fleet in Watertown, S.D,, with great success, and Nebraska is testing them in its state fleet. In Brazil today, every vehicle on the road (along with motorcycles and off-road equipment like boats) runs on a minimum of 27 percent ethanol.

It’s still true today that America’s national, energy and economic security is tied to our economic and consumer dependence on oil imported from volatile regions of the world. Using our farm commodities and agricultural by-products – such as corn, soybeans, switchgrass and livestock waste – and capturing natural resources – such as wind – to produce homegrown renewable energy is a winning solution to address the nation’s energy and climate challenges. Despite relentless misinformation campaigns by the oil industry and its allies, ethanol should again be seen and valued for what it is – a cleaner, healthier renewable fuel produced in the USA.

Read the original article: Environmental Advocates Should Take Another Look at Biofuels

Post Bulletin

August 18, 2019

By Noah Fish

Producers of corn and ethanol say the Trump administration has bailed out refineries owned by large oil companies at their expense.

The Environmental Protection Agency granted biofuel waivers to 31 refineries on Aug. 9, displeasing the corn and ethanol industry.

Refineries are eligible for exemptions if they can prove they are in financial strife. The waivers free them from their obligation under the Renewable Fuel Standard (RFS) to blend biofuels into their gasoline or buy credits from others that do.

In 2017, the EPA granted 35 of 37 applications it received. Both Chevron and Exxon, two of the world’s most profitable energy companies, have been granted waivers by the EPA.  

Randy Doyal, CEO of Al-Corn Clean Fuel in Claremont, said he was surprised with the number of waivers. He said the decision takes away "a big chunk of demand" in a market that's already oversupplied.

"It will depress the price of ethanol, and when you add the volatility of the corn market, it keeps pushing us in the wrong direction," said Doyal. "It's causing some definite tightness in the ethanol industry."

That could cause more plants to scale back or be put up for sale, he said, but Al-Corn is not one of them.

Doyal said he wasn't shocked by the number of applications that came in for waivers last year, because the EPA has developed a pattern of granting them. What he is startled by is the EPA not meeting its legal obligation to reallocate the lost ethanol gallons.

Despite an order from the U.S. Court of Appeals, the EPA has said it will not reinstate the 500 million gallons withheld by the agency in 2016.

If the EPA is going to waive the lost gallons, it should be properly accounted for, said Doyal.

"So they've basically thumbed their noses and said no," said Doyal of the EPA. "That's incredible to me, from an administration that says it's on the side of the farmers and is looking out for them."

A decision on the waivers was delayed for months, which made Doyal think something was being worked out between the Department of Agriculture and the EPA to reassign lost gallons.

"And then we get nothing," he said.

The difference of reassigning the gallons compared to waiving them is crucial for the health of the market, said Doyal.

"I'm scratching my head wondering where the heck the EPA thinks they're going with this," said Doyal. "And it's rather concerning because they seem to have the support of this administration."

According to National Corn Growers Association, the Trump administration has undermined the Renewable Fuel Standard, granted more than 50 waivers to big oil companies and lost the industry more than 2 billion ethanol-equivalent gallons of fuel.

The hit to ethanol demand will affect famers growing corn in the Midwest, who sell most of their corn to ethanol plants. This comes at a time when farmers are also dealing with the loss of export markets due to ongoing trade disputes.

"Actions by the EPA are now also costing corn farmers ethanol markets at home," said Brian Thalmann, president of the Minnesota Corn Growers Association. "The billions of biofuel gallons lost through the issuing of waivers to oil refineries only benefit big oil companies while lowering the value of our nation’s corn crop."

Read the original article: Farmers Stung by EPA's Waivers

Airline Geeks

July 26, 2019

EgyptAir took delivery of its latest Boeing 787-9 Dreamliner earlier this week, the fifth of six next-generation Boeing aircraft destined for its fleet. While EgyptAir has been taking deliveries since the beginning of 2019, this delivery flight had a twist in that it was fueled with sustainable aviation flew, making it the longest flight flown with sustainable aviation fuel (SAF) as it flew from Everett, Wash. to Cairo

The delivery flight inaugurated a new program implemented by Boeing to give the option of using the SAF on any delivery flight. EgyptAir chose to perform the longer than 13-hour flight home on the biofuel to demonstrate the airline’s desire for efficiency and sustainability, of which the Dreamliner is emblematic.

The Egyptian flag carrier operates a modest long-haul fleet consisting of Boeing 777 family and Airbus A330 family aircraft with the Dreamliner being the newest type to be inducted into the fleet. From its base in Cairo, the fuel-efficient Dreamliner is currently deployed on long-haul routes over 10 hours including Washington and Tokyo, some of the longest routes in the airline’s fleet.

Long-haul isn’t the only sector of which EgyptAir is looking to modernize and become more efficient as the airline’s regional brand, EgyptAir Express, prepares to take delivery of its first Airbus A220-300. The similarly economical aircraft will also serve EgyptAir’s goal of achieving efficiency and sustainability.

During the delivery festivities, Captain Ahmed Adel, chairman and CEO of EgyptAir Holding Company spoke to the crowd, “We are committed to the sustainable growth of our airline and supporting commercial aviation’s efforts to protect the environment. The 787-9 Dreamliner is a great fit for our network and provides our customers with a responsible choice for air travel”

While the Dreamliner program was designed for exceptional fuel efficiency, the added bonus of the SAF is not only in the burning performance but in weight as well. Jets like the Dreamliner typically run on Jet-A fuel, which weighs 6.8 pounds per gallon whereas SAF weighs less at just 6.6 pounds.

Though only .2 pounds, the savings is when a 787-8 Dreamliner’s fuel capacity is 33,340 gallons. The fuel composition is 30 percent sustainable aviation fuel plus 70 percent Jet-A, meaning that 10,002 gallons of the total amount is lighter than a normal fill-up. The carbon dioxide emission should also be reduced by around 80 percent during the lifecycle of the airplane when using SAF.

EgyptAir leases its Dreamliner fleet from Irish leasing company Aercap, Boeing’s largest 787 customer with 114 owned, managed and on order.

“We are delighted to support EGYPTAIR’s fleet renewal strategy and to be a part of this important industry-first milestone,” Aengus Kelly, CEO of Aercap, said. “The 787 is a perfect choice for EGYPTAIR, allowing the airline to reduce fuel use and emissions by up to 25 percent while meeting its sustainable growth ambitions, as well as supporting Aercap’s target to transition its fleet to over two-thirds new technology aircraft by 2021.”

The biofuel used to power this EgyptAir 787’s journey home from Everett was created down the coast in a facility in Paramount, Calif. by World Energy. The plant is able to make the renewable fuel in quantities necessary for the airline industry. This particular sustainable fuel is made from agricultural waste mixed with the currently used Jet-A and is used interchangeably as a regular fuel without the need to change any engine systems.

“Boeing and the industry believe sustainable fuel has significant long-term potential to help commercial aviation earn its license to keep growing and meet our climate goals,” said Sheila Remes, vice president of strategy at Boeing Commercial Airplanes.

The use of SAF is not a new concept as commercial passenger flights began using it as early as 2011. Since that time, the fuels have become more refined and are able to be produced at levels to meet the needs of increasing air travel. The use of the fuel on such a long flight on an already fuel-efficient aircraft is a big step in attaining environmental goals, reducing carbon footprints and making air travel sustainable for the future.

Read the original article: EgyptAir Flies Newest Dreamliner Home Using Biofuel, Sets Distance Record

Indiana Business Journal

August 5, 2019

As China turns its back on American ethanol in a lingering trade spat, Brazil is considering opening its doors to U.S. biofuel.

Brazilian authorities are debating whether to yield to Washington, D.C.’s request to lift ethanol-import duties as a way of facilitating talks for a bilateral trade deal with the U.S., two people with direct knowledge of the matter said. A broad trade accord would benefit many Brazilian products and may be announced by October.

Officials in Brazil’s Economy Ministry are willing to remove ethanol barriers while those from the more protectionist Agriculture Ministry are pushing to renew the current import quotas with zero tariffs, the people said, asking not to be identified because talks are private.

Two years ago, Brazil slapped a 20% tariff on U.S. ethanol shipments that exceed an annual quota of 600 million liters (158 million gallons) after American corn-ethanol imports surged, flooding the Brazilian market and pushing down prices.

A biofuel deal between the two nations would come as a relief for the U.S. ethanol industry, which has been beset by a supply glut and the weakest margins in more than 15 years. American producers had expanded rapidly to cater to fast-growing Chinese demand, only to be left without buyers amid President Donald Trump’s trade war with Beijing.

Indiana has the fifth-largest production capacity for fuel ethanol among states, according to 2018 numbers from the U.S. Energy Information Administration.

A decision would have to be made by the end of this month, when the quota expires and a 20% duty on all imports would go back into effect, the people said. Brazil’s sugar-cane industry group Unica and the Economy and Agriculture ministries didn’t immediately respond to requests for comment.

The administration of President Jair Bolsonaro would at least exclude some American ethanol shipments from the 20% tax in order to preserve relations given Brazil is striving to address other U.S. trade complaints, according to the people. In March, Brazil agreed to open a wheat import quota of 750,000 tons a year free of duty, a move U.S. Wheat Associates says could benefit American farmers.

In a worst-case scenario, the Economy Ministry would extend the 600 million-liter quota to gain more time to negotiate, the people said.

Brazil was the top destination for U.S. corn-ethanol shipments last year, with imports of more than 1.7 billion liters.

Read the original article: Brazil Considers Dropping Barriers to U.S. Ethanol

By Rep. Collin Peterson

Aug 12, 2019

DETROIT LAKES, Minn. – Following an announcement Friday evening from the Environmental Protection Agency (EPA) of the granting of 31 small refinery exemption waivers under the Renewable Fuel Standard, Congressman Collin C. Peterson issued a statement pointing to the capacity of the waivers to significantly undermine the RFS at a time when farmers need the certainty it creates.

“The Administration tried to bury bad news for rural America by quietly approving 31 more waivers this Friday afternoon that undermine the Renewable Fuel Standard (RFS) and the market for corn. On Wednesday, I hosted a packed forum at Farmfest with Secretary Perdue where farmers raised this issue again and again. Farmers are on the front lines of the tariff war and this announcement by the EPA will only make things worse.”

As a co-Chair of the Congressional Biofuels Caucus, Congressman Peterson has worked to stop the EPA from approving waivers to the RFS that have hurt ethanol producers and the farm economy. Congressman Peterson, Rep. Dusty Johnson (R-SD) and the co-chairs of the Congressional Biofuels Caucus introduced H.R. 3006, the Renewable Fuel Standard Integrity Act of 2019, which would stop the EPA from recklessly granting waivers to oil refineries and undermining the market for ethanol.  

Biofuels International

Aug 6, 2019

Finnish airline Finnair has flown the first biofuel flight supported by its ‘Push for Change’ carbon reducing initiative.

On 5 August, a Finnair flight departing from San Francisco Airport to Helsinki in Finland was fuelled with a 12% biofuel blend. Another flight will depart on 7 August, with the total carbon dioxide emission from the two flights reduced by around 32 tons.

“The launch of our Push for Change initiative was an important step for Finnair in order to provide our customers with the opportunity to conveniently offset or decrease the emissions from their travel,” said Arja Suominen, senior vice-president of communications and corporate responsibility at Finnair. “We have been pleased with the early phases of the initiative so far and we are now excited to move forward and fly our two first biofuel flights supported entirely by the Push for Change contributions. We naturally hope that customers will be increasingly willing and interested in using the service in the future as well.”

The airline is working with partners SkyNRG and World Energy in San Francisco, while Shell Aviation provided logistics and supply chain support for the project. The biofuel is produced from used cooking oil in California.

Read the original story here : Finnair Flies First Biofuel-Powered Flight From San Francisco To Helsinki

Ethanol Producer Magazine

August 1, 2019

By Evan Almberg

Many ethanol plants are up to 15 years old, or older, and the subject of increasing production, efficiency and profitability is more prevalent than ever. With new, more efficient technologies coming to market for various processes within a biorefinery, the desire to debottleneck older equipment can drive maintenance and capital project decisions.

Producers must decide if they want to budget and plan to maintain, upgrade or scrap and replace with a new unit. When it comes to boilers and heat recovery steam generators (HRSGs), maintenance cost and upgrade opportunities often dictate the conversation.

Tools for Making Data-Driven Decisions
Fully assessing the operation of a boiler or HRSG requires accounting for multiple factors including how a process change will affect related equipment, not just the direct system involved. Process operators and plant engineers can utilize the distributed control system (DCS) to perform on-the-fly performance checks confidently. Combining this with information located in the original equipment manufacturer (OEM) predicted performance data sheets, producers can estimate as-is performance while operating. Additionally, the data historian system provides the ability to trend data over time, providing long-term review capabilities of the boiler.

Where Modeling and Data are Key
While a control room data assessment can give a brief insight of as-is performance, it doesn’t tell the whole story. Boilers are often run differently than originally designed, making a direct comparison to the OEM predicted performance difficult. Additionally, a process change—such as dryer throughput or feedwater temperature—can greatly affect multiple aspects of the system that are not as easily quantified.

A thermal model can provide more accurate insight into the boiler performance and help fully assess the system. Modeling provides a digital representation of the boiler system, taking into consideration the physical geometries of the water and gas-side flow paths, along with OEM predicted performance values used to validate the model.

Taking it one step further, DCS and process information (PI) historian data can be reviewed and matched to the thermal model to provide an as-is representation of operation, ideal for plants that have been operating for multiple years or have changed components. Accurate data is important, so performing mass and energy balances about various sections of the boiler is needed to identify good and bad data, which leads to investigating and correcting miscalibrated instruments or DCS conversion algorithms.

Once developed, the model can be used to track degradation, identify under or overperforming sections of the boiler and simulate upgrade and process changes, as well as provide key insights into pressures, temperatures, flows and how they affect ancillary equipment.

Case Study: Process Upgrade Effects
A facility comprised of two identical firetube waste heat boilers, operating in parallel and sharing a common final steam separator, was investigated for a potential upstream process upgrade being performed elsewhere in the plant. Using HRST’s PerformancePro thermal modeling software, a thermal model was developed based on the OEM thermal and mechanical data sheets. Typical process conditions gathered from the PI data historian were used to replicate the existing boiler operation, creating an as-is representation of the system performance.

The process upgrade parameters were provided by the plant, including values for increased boiler feedwater (BFW) temperature, as well as flue gas temperatures and mass flow rates. Primary areas of concern were the American Society of Mechanical Engineers boiler design pressures and temperatures, stamped boiler capacity, safety relief valve pressure set points and relieving capacity, as well as the final steam separator capacity.

Upon modeling and subsequent analysis, it was determined that multiple shortfalls existed in the system when simulated under the process upgrade conditions, including:

• Metal temperatures exceeding the ASME design temperatures for the upstream tube sheet, tube inlets and, in some cases, the bulk tube temperature.

• Steam generation exceeding the boiler rated capacity and the safety valve relieving capacity.

• Combined (boiler one and two) steam flow exceeding the final steam separator capacity.

Additionally, it was determined that the pressure drop from the boiler to the main steam header would increase on the order of 2.25 times over existing, and the increased flue gas mass flow and temperature would increase the stack temperatures by 40 to 70 degrees Fahrenheit over the current baseline.

Solutions for meeting ASME code would require a capacity and design temperature rerate, whereas the final steam separator would only require upgraded internal equipment to meet capacity requirements. To rerate for higher temperatures, a condition assessment of all tubes and welds would be required to validate the component thickness for ASME code calculations. Plant personnel said abrasive particulates in the flow eroded tube inlets, causing plugging.

While a steam capacity rerate would be advantageous, discussion with plant personnel determined that the scope required to validate all tube and pressure part thicknesses would be costly and, because of the failure history, may only indicate that a temperature rerate would not be possible.

Because of those factors and the age of the boilers, the plant opted to continue use under existing conditions for the short term. Ultimately, the decision was made to replace each of the boilers with newer, higher-capacity units specifically designed for the upgrade parameters, with results of the thermal modeling assessment used as justification.?

Key Takeaways
When it comes to making long-term decisions about boiler operation or replacement, historical operating data trends and future operating conditions can provide helpful insight and, when combined with system modeling, create a useful tool to analyze the boiler as well as ancillary equipment.

Approaches such as this can help operators and plant management make data-driven decisions when facing the choices to maintain, upgrade or replace.

Author: Evan Almberg
Analysis Engineer
HRST Inc.
952.767.8154
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Read the original article: Performance Matters