In the News
DuPont Launches SYNERXIA® Gemstone Collection of New High-Performance Yeasts for U.S. Ethanol Market
DuPont Nutrition & Biosciences
Jan 26, 2021
DuPont Nutrition & Biosciences today announced the launch of the SYNERXIA® Gemstone Collection, the next advancement in high-performance yeasts. The new collection from the XCELIS® platform includes SYNERXIA® SAPPHIRE and SYNERXIA® RUBY – two innovative, high-yield yeasts designed for the unique needs of ethanol producers.
This marks the first time that DuPont has co-launched two high-yield yeasts. SYNERXIA® SAPPHIRE brings the most powerful combination of yield, robustness and enzyme expression in a yeast. It offers enhanced ethanol yield increase paired with revolutionary thermotolerance and infection robustness in fermentation and has been genetically engineered to withstand harsh stressors, while still finishing fermentation with ultra-low DP1.
SYNERXIA® SAPPHIRE has been engineered to provide a strong ethanol yield increase compared to conventional yeast and powers through fermentation finishing clean when ethanol producers encounter hot fermentations or severe infections. The product also expresses enough glucoamylase to displace up to 80 percent of the glucoamylase injected to fermentation. The yeast’s strong expression of the powerful glucoamylase offers reduced residual starch for many producers.
SYNERXIA® RUBY is the highest yielding yeast available today from the XCELIS® platform, delivering exceptional performance to producers via a patented PKL pathway and additional targeted genetic modifications. It produces less acetic acid compared to SYNERXIA® THRIVE GX and enables up to 65 percent glucoamylase reduction.
“The SYNERXIA® Gemstone Collection will give ethanol producers flexibility in responding to their individual plant needs while ensuring high ethanol yield and minimal waste,” said Hans Foerster, global marketing director, DuPont Biorefineries. “These new yeasts represent a new standard in high-yield yeasts on the market for ethanol producers and is just the latest in DuPont’s innovative approach to ethanol solutions through the XCELIS® platform.”
To learn more about the SYNERXIA® Gemstone Collection and the XCELIS® platform, visit www.xcelis.com or https://www.linkedin.com/showcase/xcelis-ethanol-solutions.
Read the original news release here.
Jan 26, 2021
A comprehensive new study by scientists from Harvard University, Tufts University and Environmental Health & Engineering Inc. shows that using corn ethanol in place of gasoline reduces greenhouse gas emissions by almost half. The “central best estimate” of corn ethanol’s carbon intensity is 46% lower than the average carbon intensity of gasoline, according to the study’s authors, with some corn ethanol in the market today achieving a 61% reduction. The study credits recent efficiency improvements and the adoption of new technologies for the steady reduction in the lifecycle carbon intensity of corn ethanol. The new study will be published in an upcoming volume of Environmental Research Letters, a well-respected academic journal.
“This new study provides further validation that ethanol is a highly effective tool that for decarbonizing liquid transportation fuels and significantly reducing greenhouse gas emissions from the transportation sector,” said Renewable Fuels Association President & CEO Geoff Cooper. “And with ethanol, we don’t have to wait and hope for technological and economic breakthroughs. It’s here today at a low cost and already has a proven track record. Ethanol can and should be allowed to do more to contribute to the fight against climate change, and that starts by breaking down the barriers to higher blends like E15, E30, and flex fuels like E85. As President Biden’s administration and the new Congress consider actions and policies to address climate change, we encourage them to examine the best available science and properly account for the critical role ethanol and other renewable fuels can play in securing immediate GHG reductions.”
Cooper pointed out that the scientists found that emissions from land-use change are only “a minor contributor” to the overall carbon footprint of corn ethanol, accounting for just 7% of total GHG emissions.
According to EH&E’s Chief Science Officer David MacIntosh, one of the study’s authors, “This research provides an up-to-date accounting of corn starch ethanol’s GHG profile in comparison to that of gasoline refined from crude oil. The results of this research are timely for the scientific, public health, legislative, and business communities seeking to establish a net-zero carbon economy while addressing related technological, political and economic challenges.”
Read the original news release here.
Jan 22, 2021
U.S. ethanol production was up less than 1 percent the week ending Jan. 15 while weekly ending stocks were down slightly, according to data released by the U.S. Energy Information Administration on Jan. 22.
U.S. ethanol production averaged 945,000 barrels per day the week ending Jan. 15, up 4,000 barrels per day when compared to the 941,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 104,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol fell to 23.628 million barrels the week ending Jan. 22, down 64,000 barrels when compared to the 23.692 million barrels of stocks reported for the previous week.
Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been trending higher in recent months. When compared to the same week of last year, ethanol stocks for the week ending Jan. 15 were up 403,000 barrels.
Read the original story here.
Jan 21, 2021
In response to an emergency motion filed Tuesday evening by the Renewable Fuels Association, the U.S. Court of Appeals for the D.C. Circuit today ordered that EPA’s action on Tuesday to grant three small refinery petitions must be “administratively stayed pending further order of the court.”
The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10.
The stay comes roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would erase another 260 million gallons of Renewable Fuel Standard blending requirements.
“We took this action immediately to prevent the agency from doing further economic damage to an industry already reeling from the impacts of COVID-19,” said RFA President and CEO Geoff Cooper on Tuesday when the motion was filed. “To avert additional harm to the ethanol industry, EPA must be prevented from returning any compliance credits (RINs) to the unidentified refiners who were given these last-minute exemption handouts.”
Read the original press release here.
Jan 18, 2021
The ethanol sector continued to recover during the fourth quarter of 2020 with production levels up 3.5 percent when compared to the third quarter, according to a new quarterly report released by CoBank’s Knowledge Exchange on Jan. 14. Margins, however, were down.
Average daily production was at 14.7 billion gallons or 90 percent of pre-COVID supply and demand during the fourth quarter, up from 14.2 billion gallons in the third quarter or approximately 87 percent of pre-COVID supply and demand during the third quarter.
According to CoBank, average daily operating margins for a representative Iowa dry mill fuel ethanol plant fell by 10 cents during the quarter to 11 cents per gallons. The report notes that input costs increased dramatically during the three-month period, with corn prices up 26 percent and natural gas prices up 19 percent.
CoBank said it is closely monitoring industry operating margins given the risk that ethanol fuel prices could stagnate relative to increasing corn prices. The report indicates, however, that facilities producing distillers grains coproducts may continue to see margin expansion should distillers grains values remain elevated relative to corn.
In the near-term, CoBank said the incoming Biden administration’s urgency in addressing climate change through its recommitment to the Clean Air Act will be a positive for the ethanol industry. Longer term, however, electric vehicles threaten to erode ethanol demand.
CoBank also predicted the production outlook for fuel ethanol could somewhat improve in 2021 if COVID-19 vaccine deployment fosters a return to workplaces.
For the U.S. economy as a whole, CoBank predicts it will be summer before the economy really begins to gain steam. The second half of the year, however, is expected to power the economy to annual growth of approximately 4.5 percent to 5.5 percent.
A full copy of the quarterly report can be downloaded from the CoBank website.
Read the original story here.
Jan 14, 2021
The U.S. Environmental Protection Agency said on Thursday it would propose to extend deadlines for refiners to prove compliance with biofuel laws, but signaled it would not decide on a slew of pending waiver requests submitted by the industry.
The agency's proposal represented mixed news for refiners hard hit by slumping energy demand during the coronavirus pandemic and eager to sidestep regulatory costs associated with U.S. biofuel blending policy. It also marks one of the last actions from President Donald Trump's EPA before he leaves office on Jan. 20.
The agency said it is proposing to extend the compliance deadline for 2019 biofuel blending obligations to Nov. 30, 2021, and an associated deadline for submission of attest engagement reports to June 1, 2022. The EPA is also proposing to extend the 2020 deadlines to Jan. 31, 2022, and June 1, 2022.
Refiners must hand in credits to the EPA each year to prove they complied with their annual biofuel blending obligations for the previous year.
The agency also said it was not taking a position on the availability of 2019 small refinery waivers, which can exempt oil refiners from biofuel blending obligations. The agency said the decision was related to pending litigation regarding the waiver program.
EPA could not be reached by Reuters to clarify whether that meant the agency was not issuing any additional waivers before Trump leaves office.
The proposal was outlined in a document seen by Reuters that is scheduled to be posted on the Federal Register on Friday.
Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels like corn-based ethanol into their fuel mix, or buy credits from those that do. Refiners can apply for exemptions if they can prove the obligations would cause them financial harm.
Because of the coronavirus pandemic, EPA had not enforced compliance for some refineries for the 2019 compliance year.
"While we don’t agree that EPA needs to wait as long as it is proposing, particularly for the 2020 compliance year, we do agree with EPA that the outgoing administration should refrain from any further action on the pending small refinery petitions," said Geoff Cooper, president of the Renewable Fuels Association.
U.S. senators including Joni Ernst and Chuck Grassley of Iowa urged EPA Administrator Andrew Wheeler in a letter dated Thursday not to grant small refinery exemptions until ongoing litigation is resolved.
Renewable fuel (D6) credits for 2020 traded at 90 cents each on Thursday, up from 79 cents in the previous session, traders said.
Read the original story here.
Jan 13, 2021
U.S. ethanol production was up nearly 1 percent the week ending Jan. 8, according to data released by the U.S. Energy Information Administration on Jan. 13. Weekly ending stocks of fuel ethanol increased by nearly 2 percent.
U.S. ethanol production averaged 941,000 barrels per day the week ending Jan. 8, up 6,000 barrels per day when compared to the 935,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 154,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol increased to 23.692 million barrels the week ending Jan. 8, up 408,000 barrels when compared to the 23.692 million barrels of stocks reported for the previous week.
Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been trending higher in recent months. When compared to the same week of last year, ethanol stocks for the week ending Jan. 8 were up 686,000 barrels.
Read the original story here.
Jan 12, 2021
[WASHINGTON, D.C.] — U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) are calling on the incoming Biden administration to take bold action immediately following the inauguration to support farmers and rural communities by restoring integrity to the Renewable Fuel Standard (RFS). Senators Tammy Duckworth (D-IL), Tammy Baldwin (D-WI), Debbie Stabenow (D-MI), and Richard J. Durbin (D-IL) joined Klobuchar and Smith on this request.
The RFS sets the amount of renewable fuels made from farm products such as corn and soybeans that is blended into the nation’s fuel supply. A strong renewable fuel standard is critically important to Minnesota corn and soybean farmers and is key to job creation in many rural communities. Waivers granted by the Trump Administration allowed fuel refineries to blend billions of gallons less of renewables into the fuel supply, hurting farm income.
In part, the Senators wrote: “The outgoing administration undermined the Renewable Fuel Standard (RFS), which was designed to reduce greenhouse gas emissions from the transportation sector, diversify our fuels, strengthen our national security and drive economic opportunity in America’s heartland. It is critical that the integrity of this policy be restored, and that biofuels be part of your efforts to combat climate change and reduce greenhouse gas emissions from the Nation’s largest emitting sector.”
A full copy of the letter is available below and here.
Dear President-Elect Biden,
We write to respectfully request your administration take bold action to support our Nation’s farmers and rural communities while acting to combat climate change. The outgoing administration undermined the Renewable Fuel Standard (RFS), which was designed to reduce greenhouse gas emissions from the transportation sector, diversify our fuels, strengthen our national security and drive economic opportunity in America’s heartland. It is critical that the integrity of this policy be restored, and that biofuels be part of your efforts to combat climate change and reduce greenhouse gas emissions from the Nation’s largest emitting sector.
In order to deliver on these goals, we urge you to swiftly act by taking these steps:
- Direct EPA to adopt the Tenth Circuit decision nationwide and swiftly reject any pending and future petitions for small refinery exemptions (SREs) that do not meet the standards set forth by the court: Congress included SREs under the RFS with the intention of mitigating economic harm to small refinery operations. Under the last administration, the intent of SREs was grossly abused when multi-billion dollar companies, like ExxonMobil and Chevron, were provided these waivers.
- Publish Renewable Volume Obligations (RVOs) swiftly: The outgoing administration failed to meet its statutory obligation by not publishing a set of 2021 RVOs. EPA must now publish them quickly and restore certainty in the fuel markets. The RVOs must facilitate substantial growth opportunity for advanced biofuels and include the court-ordered reallocation of 500 million gallons of blending obligations that were wrongfully waived in 2016.
- Approve pending pathway applications for corn kernel fiber ethanol and update EPA’s biofuels emissions modeling: EPA faces a backlog of applications from companies seeking to produce cellulosic biofuel from various feedstocks and have them qualify under the RFS. The Agency’s failure to approve these applications is discouraging investment and impacting the ability of these fuels to be commercialized. Companies have waited, on average, more than two years for their applications to be approved. This has led some companies to abandon their plans. Furthermore, EPA’s emissions modeling for the RFS is a decade old and inaccurate. It is critical their modeling be updated so that we fully recognize how biofuels are contributing to our greenhouse gas emission reduction goals. We urge EPA to adopt Argonne National Laboratory’s Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model.
- When reaffirming our commitment to the Paris Climate Accord, include biofuels: Transportation is responsible for approximately one-quarter of total global energy-related greenhouse gas emissions and the sector is rapidly growing. Biofuels are substantially lower in carbon intensity than fossil fuels and have the advantage that they can reduce the carbon emissions of gasoline vehicles in the short run. For example, in its January 12, 2017, report, the U.S. Department of Agriculture (USDA) found that corn ethanol reduces greenhouse gas emissions by 43 percent compared to conventional gasoline and has the potential to reduce emissions by as much as 76 percent. It is essential that biofuels are included in addressing carbon reduction in the transportation sector for our international climate goals to be met.
We strongly support your administration’s goal of addressing the climate crisis and supporting our Nation’s farmers. Ending the policy abuses that were prevalent during the outgoing administration early on in your term will help to renew commitments to rural communities and drive economic resiliency in the heartland. In addition to the policy recommendations above, we urge your administration to begin consideration of the RFS “set” for RVO volumes for 2023 and beyond, guided by the important role that biofuels must play in meaningful and rapid climate action.
We look forward to working with you on this important effort.
Read the original press release here.
More...
Jan 11, 2021
On “Day One” in office, President-elect Biden’s incoming administration can immediately secure 10.7 million metric tons of greenhouse gas (GHG) reductions simply by rejecting the 66 pending waiver requests from oil refiners who are looking to dodge their Renewable Fuel Standard (RFS) obligations. In addition, another 1.2 million metric tons of GHG reductions can be achieved by finally implementing a 2017 court order to restore renewable fuel blending requirements that were illegally waived by EPA in 2016. These findings come from a new analysis released today by the Renewable Fuels Association.
According to the RFA report, the GHG reductions associated with these actions would be equivalent to removing 2.6 million gasoline-powered passenger vehicles from the road, eliminating the annual emissions from three coal-fired power plants, or replacing 3.7 million gasoline-powered passenger vehicles with battery electric vehicles.
“Not only have the Trump administration’s illegitimate refinery exemptions caused extensive economic harm to renewable fuel producers and farmers, but they have also led to increased GHG emissions and environmental damages. That needs to end now, and outgoing EPA officials should absolutely not—under any circumstances—issue any further waivers on their way out the door, lest they do even more damage to the environment and rural America’s economic health,” said RFA President and CEO Geoff Cooper. “By putting an immediate stop to these secretive oil refinery waivers, President-elect Biden and his incoming team have a rare opportunity to instantly secure significant GHG emissions reductions from the transportation sector on day one. Rejecting the exemption requests also would fulfill commitments made by President-elect Biden during the campaign, generating trust and goodwill in rural America.”
Cooper also pointed out that rejecting the waivers and enforcing the court’s 500-million-gallon remand would not require executive orders, rulemakings, or legislative action. “These are truly things that can be done immediately to safeguard the market for low-carbon renewable fuels and secure meaningful GHG reductions,” he said.
According to the RFA analysis, “When refiners are inappropriately released from their renewable fuel blending obligations, they supply more petroleum-based fuels—like gasoline and diesel—to the market in lieu of renewable fuels.” In turn, those exemptions “…lead to higher GHG emissions from the transportation sector than would have been the case if the exemptions had not been issued and the required volumes of renewable fuel had been used.”
RFA’s analysis is available here.
Read the original story here.
Jan 7, 2021
U.S. ethanol exports in November declined 10% to 113.6 million gallons (mg) but landed 6% above year-ago levels at this time. Shipments crossing the border to Canada were fractionally lower, down 0.3% to 35.5 mg, securing nearly a third of total U.S. ethanol exports. Brazil re-entered the market with 13.4 mg in sales, which is the country’s largest U.S. ethanol draw in seven months. Exports to India were slightly higher (up 0.5%) at 11.7 mg while sales to Colombia decreased 8% to 10.2 mg. China also re-entered the market with 8.6 mg in sales, which is the country’s largest U.S. ethanol draw since March 2018. Other larger markets included South Korea (6.8 mg, -54%), Peru (6.1 mg, +72%), and Nigeria (5.9 mg, +56%). Global year-to-date exports of U.S. ethanol totaled 1.223 billion gallons, or 8% less than this time a year ago.
The U.S. imported 19.4 mg of ethanol, down 14% from October, with essentially all gallons sourced from Brazil. Year-to-date imports total 151.9 mg.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—declined 3% in November to 927,604 metric tons (mt). U.S. export sales moderated in Mexico (139,844 mt, -23%), Vietnam (128,036 mg, -2%), and South Korea (88,810, -31%) but perked up in Turkey with a four-month high of 119,231 mt (+151%). The remaining half of export sales landed in another thirty countries, including Indonesia (84,002 mt), Canada (37,287 mt), Ireland (37,246 mt), Colombia (36,649 mt), and China (31,685 mt). Total worldwide U.S. DDGS exports through November were 10.12 million mt, or 1% ahead of last year at this time.
Read the original story here.
Jan 5, 2021
In a court filing today, the Renewable Fuels Association and Growth Energy continued to call on the U.S. Environmental Protection Agency and the Department of Energy to release the names and locations of refineries granted exemptions from their Renewable Fuel Standard obligations.
RFA President and CEO Geoff Cooper and Growth Energy CEO Emily Skor offered the following joint statement on the filing: “The public has a right to know which companies are receiving waivers from their Clean Air Act obligations and skirting requirements to blend cleaner, greener renewable fuels like ethanol. It is disingenuous for EPA to suggest that the names and locations of the exempted refineries constitute confidential business information, especially when the Agency itself has twice proposed to publicly disclose this information. We will not stop our efforts to bring transparency to this process until the shroud of secrecy has been lifted on the small refinery exemption program.”
The dispute centers on EPA’s refusal to provide certain basic information about refinery exemptions as requested by RFA and Growth Energy under the federal Freedom of Information Act. EPA incorrectly claims that even the names and locations of refineries receiving waivers are protected because they constitute “commercial or financial information obtained from a person [that is] privileged or confidential.” But RFA and Growth Energy have simply requested the names and locations of the refineries petitioning for exemptions, not any commercial information or financial data that might otherwise be exempt from public disclosure under FOIA.
“Although EPA shares the aggregate number of exemptions it has decided to grant or deny, its withholding of the basic information regarding individual exemption decisions sought here has made it difficult or impossible for affected third parties (such as Plaintiffs) to challenge its exemption decisions,” RFA and Growth Energy state in the court filing. “EPA has relieved scores of refineries of their statutory compliance obligations without any public process, leaving Plaintiffs and other affected entities ‘without a viable avenue for judicial review.’”
Read the original press release here.
Dec 29, 2020
The USDA recently released its Grain Crushings and Co-Products Production report for December, reporting that corn use for fuel ethanol production reached 433 million bushels in October, up from the previous month, but down from November 2019.
Total corn consumed for alcohol and other uses was 481 million bushels in October, up 7 percent when compared to the previous month, but down 1 percent from October 2019. October usage included 92 percent for alcohol and 8 percent for other purposes.
Corn consumed for fuel alcohol was at 433 million bushels, up 8 percent from the previous month, but down 1 percent when compared to October 2019. Corn consumed for dry milling fuel production and wet milling fuel production was 89.6 percent and 10.4 percent, respectively.
The volume of sorghum consumed in October for fuel alcohol production was withheld from the USDA’s report to avoid disclosing data for individual operations. Data was also withheld for the previous month. In October 2019, however, 4.054 million hundredweight (cwt) (227,024 tons) of sorghum went to fuel alcohol production.
At dry mills, condensed distillers solubles production was at 82,598 tons, up from 77,294 tons in September, but down from 93,867 tons in October of the previous year. Corn oil production increased to 160,875 tons, up from 140,468 tons the previous month and 150,112 tons in October 2019. Distillers dried grains production reached 377,960 tons, up from 341,156 tons in September and 348,762 tons in October of the previous year. Distillers dried grains with solubles production was at 1.8 million tons, up from 1.74 million tons in September, but down from 1.87 million tons in October 2019. Distillers wet grains production was at 1.01 million tons, up from 961,695 tons the previous month, but down from 1.3 million tons in October of the previous year. Modified distillers grain production was at 416,516 tons, up from 403,603 tons in September, but down from 447,475 tons in October 2019.
At wet mills, corn germ meal production fell to 43,242 tons, down from 50,401 tons the previous month and 51,988 tons in October 2019. Corn gluten feed production was at 293,793 tons, up from 284,409 tons the previous month, but down slightly from 293,890 tons in October of the previous year. Corn gluten meal production increased to 108,844 tons, up from 85,348 tons in September and 87,589 tons in October 2019. Wet corn gluten feed production was at 244,618 tons, down from 251,199 tons the previous month, but up from 233,348 tons during the same month of the previous year.
At dry and wet mills, carbon dioxide captured was at 197,696 tons, up from 185,854 tons in September, but down from 241,014 tons in October 2019.
Read the original story here.
Dec 23, 2020
U.S. ethanol production was up 2 percent the week ending Dec. 18, according to data released by the U.S. Energy Information Administration on Dec. 23. Weekly ending stocks of fuel ethanol increased by 1 percent.
U.S. ethanol production averaged 976,000 barrels per day the week ending Dec. 18, up 19,000 barrels per day when compared to the 957,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 107,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol expanded to 23.169 million barrels the week ending Dec. 18, up 219,000 barrels when compared to the 22.95 million barrels of stocks reported for the previous week. Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been growing in recent weeks. When compared to the same week of last year, ethanol stocks for the week ending Dec. 18 were up 1.7 million barrels.
Read the original story here.
Dec 16, 2020
As the ongoing impacts of COVID-19 push air quality and climate issues to center stage, the U.S. Grains Council is continuing its work to demonstrate the environmental benefits of ethanol to global stakeholders.
Five years after the Paris Agreement to reduce carbon emissions was first signed, countries are reporting their progress in meeting their nationally determined contributions (NDCs) to overall reductions, including some that have created or implemented domestic ethanol policies to help meet these goals. These include Canada and Brazil with the Clean Fuel Standard and RenovaBio, respectively.
“The International Energy Agency (IEA) recognizes the important role of policies as a demand driver and the ability for countries to achieve their environmental and climate goals,” said Brian Healy, USGC director of global ethanol market development. “Continued attention on the Paris Agreement’s commitment requirements is one factor that furthers the opportunity for ethanol to be recognized as a solution to greenhouse gas emission (GHG) reductions.”
To foster growing use of ethanol around the world, the Council has focused on developing partnerships with local governments and industries; promoting trade policy that recognizes ethanol’s role as a transportation fuel; and ensuring tariff lines and non-tariff trade policies treat ethanol equitably.
“It is clear ethanol is a readily available component that can be incorporated in transportation policies focused on reducing overall emissions,” Healy said. “We are working with our partners to elevate that narrative around GHG emissions savings potential as countries evaluate and present progress on their NDCs.”
Fuel ethanol trade is expected to be down in 2020 from the nearly 2.5 billion gallons of total trade in 2019. Stay-at-home orders have weighed heavily on overall fuel demand, which impacted U.S. ethanol exports by 12 percent in the last marketing year. That short-term market loss serves as a critical reminder of the importance of strong trade policy to incentivize the use of biofuels and ensure they get fair treatment in the global market.
“Our work continues globally, highlighting the ongoing role that policies have for expanded ethanol use,” Healy said. “This is especially prudent considering delays in implementation that have occurred in some Asian markets with currently low blend rates, which are trying to abate their own emissions across the transport sector.”
Read the original press release here.
Dec 22, 2020
Agricultural and biofuels groups as well as farm state lawmakers are pleased that the new COVID relief package passed by Congress last night includes help for producers excluded from previous aid legislation.
Sen. John Thune (R-SD) says relief includes the Paycheck Protection Program for Producers Act. “The bill also includes funding to allow the Department of Agriculture to provide additional assistance to ag producers who were dealing with a tough economy before the pandemic hit,” said Thune.
The bill explicitly makes producers of biofuels like ethanol and biodiesel eligible for USDA assistance, at the discretion of the secretary. “Biofuel producers have suffered from the drop in fuel demand during the pandemic and I hope the secretary will ensure that they are able to receive assistance,” Thune said.
The bill also extends key tax provisions that support innovation and expansion in the renewable fuels industry, including the Second Generation Biofuel Producer Tax Credit, Alternative Fuel Refueling Property Credit, and the Section 45Q tax credit for carbon sequestration.
Renewable Fuels Association (RFA) President and CEO Geoff Cooper says the aid is much needed. “More than half of the ethanol industry shut down during the extraordinary demand collapse in the spring, and producers across the country still have not fully recovered from that market shock. The pandemic has cost the industry nearly $4 billion in lost revenue to date, with losses expected to continue well into 2021.”
American Coalition for Ethanol (ACE) CEO Brian Jennings says they were hoping Congress would require USDA to make relief payments to biofuel producers, but he expects Agriculture Secretary nominee Tom Vilsack will be supportive. “Congress gave USDA flexibility to provide relief for biofuel producers in the last stimulus package, but USDA declined to exercise it. That is why job one in 2021 will be to work with incoming USDA Secretary Vilsack, upon his confirmation in the U.S. Senate, to get assistance to the industry in rapid fashion.”
Read the original story here.
Minnesota Pollution Control Agency
Dec 18, 2020
The Minnesota Pollution Control Agency (MPCA) today announced it is moving forward with its proposed clean car standards similar to those in 14 other states, including Colorado and Maine. If approved by an administrative law judge, Minnesota’s clean car standards would apply to new vehicles and are anticipated to take effect beginning with model year 2025 (January 2024).
Minnesota’s proposed clean car rule would adopt two new emission standards used in many parts of the country.
Low emission vehicle (LEV) standard fortifies standard for today’s new vehicles
The LEV standard regulates the amount of greenhouse gases and other harmful air pollution that new vehicles can emit. The LEV standard only applies to new light- and medium-duty vehicles like cars, SUVs, and pickup trucks. The LEV standard does not apply to off-road or farming equipment, heavy-duty vehicles, or used vehicles, and it does not require emissions testing. It also does not prevent the use of biofuels and other cleaner fuels.
Most importantly, all new vehicles sold in Minnesota since 2012 currently meet the LEV standard. Between 2012 and 2020, the United States only had one, unified standard – meaning the federal standard was aligned with the LEV standard. In March 2020, the federal government rolled back existing emissions standards, which could mean weaker environmental protections for our state if we don’t act.
Zero emission vehicle (ZEV) standard brings more hybrid and electric vehicles to Minnesota
The ZEV standard requires auto manufacturers to deliver more battery electric vehicles and plug-in hybrid models for sale in Minnesota, increasing each year. The exact number of vehicles is linked to the automaker’s overall sales within the state. The ZEV standard calls for incremental progress over time, not sudden, overnight change.
Minnesota has been on the tail end of receiving electric vehicles, and there are more makes and models available in ZEV states than Minnesotans can easily acquire here. A July 2020 survey found that Twin Cities auto dealers had only 171 new hybrids and electric vehicles on their lots out of more than 19,300 total vehicles for sale. In Greater Minnesota, consumers had even fewer options with no new hybrid and electric vehicles available in Duluth, Marshall, and Bemidji, and just 11 for sale in Rochester. Adopting the ZEV standard would ensure that Minnesota is at the forefront of receiving this new innovation.
“Minnesotans expect action to address our current climate crisis. That’s why the MPCA is using every available tool to address greenhouse gas emissions, including clean car standards that reduce emissions and increase electric vehicle options,” said Laura Bishop, MPCA commissioner. “Clean car standards, along with the electric school bus pilot project and supporting homegrown energy like biofuels, are part of a multipronged approach to reduce greenhouse emissions in our transportation sector.”
The MPCA’s Notice of the Intent to Adopt Rule will be published in the State Register on Monday, December 21. The Office of Administrative Hearings has scheduled a two-day hearing held by the presiding administrative law judge, Judge Palmer-Denig, on February 22-23, 2021, starting at 3 p.m. each day. In January, the MPCA also will hold four online information sessions on the following dates and times:
- Tuesday, January 19, 2021, at 10 a.m.
- Wednesday, January 20, 2021, at 5 p.m.
- Wednesday, January 27, 2021, at 1 p.m.
- Tuesday, February 2, 2021, at 6 p.m.
In 2007, Governor Tim Pawlenty signed the bipartisan Next Generation Energy Act into law, setting statutory goals to reduce greenhouse gas emissions by 15% from 2005 levels by 2015, by 30% by 2025, and by 80% by 2050. Minnesota missed the 2015 target and is not on track to meet future goals, either. Between 2005 and 2018, overall greenhouse gas emissions in Minnesota decreased by just 8%.
To get back on track, Minnesota must take swift action in all sectors, including transportation. Right now the transportation sector is the single largest source of climate-changing pollution in Minnesota. According to public input gathered during the 2019 Pathways to Decarbonizing Transportation in Minnesota project, Minnesotans want and expect action from state leaders for cleaner, lower-carbon transportation options, including adopting clean car standards. Once implemented, Minnesota’s clean car standards will reduce greenhouse gas emissions by 8.4 million tons in the first 10 years, and the clean air and climate benefits will continue to grow over time.
The MPCA works with partners across the private, public, and non-profit sectors to advance electric vehicles in Minnesota, including funding needed for electric vehicle charging infrastructure. In recent years, MPCA has used funding from the national Volkswagen settlement to build more than 1,100 miles of electric vehicle charging corridors in Greater Minnesota, and will continue expanding this statewide network by another 2,500 miles starting next year.
More information about the proposed rule, public hearing, and how to participate in the process will be available on the MPCA's website: mn.gov/cleancars
Read the original press release here.