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In the News

The Hill

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

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

D3MAX

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

Novozymes

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

Star Tribune

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

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

Reuters

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

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