In the News

Ethanol Producer Magazine

Nov 30, 2021

Operable biofuels production capacity in the U.S. expanded by 32 MMgy in September to 20.766 billion gallons per year, according to data released by the U.S. Energy Information Administration on Nov. 30. Feedstock consumption was down for the month.

The increase in operable biofuels capacity came from expanded biodiesel production capacity. Capacity levels for fuel ethanol and other biofuels, defined as renewable heat oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, remained steady.

Fuel ethanol capacity was at 17.393 billion gallons per year in September, a figure that has held steady since April. Biodiesel capacity expanded to 2.462 billion gallons per year, up from 2.43 billion gallons reported the previous month. Capacity for other biofuels was at 911 MMgy, flat with the previous three months.

A total of 24.308 billion pounds of feedstock went to biofuels production in September, down from an estimated 24.948 billion pounds in August.

Biofuel producers consumed approximately 22.799 billion pounds of corn in September, down from 23.196 billion pounds the previous month. Grain sorghum consumption was also down, falling to 27 million pounds, compared to 30 million pounds consumed in August.

The EIA reported that 756 million pounds of soybean oil was used to produce biofuels in September, down from 815 million pounds in August. Corn oil and canola oil consumption also fell. Biofuel producers consumed 167 million pounds of corn oil and 106 million pounds of canola oil in September, down from 199 million pounds and 142 million pounds, respectively, in August.

The consumption of waste oils, fats and greases was also down in September. Biofuel producers consumed 18 million pounds of poultry fat during the month, flat with August. Tallow consumption fell to 90 million pounds, down from 120 million pounds. The consumption of white grease was at 54 million pounds, down slightly from 55 million pounds in August. Biofuel producers consumed only 219 million pounds of yellow grease in September, down from 305 million pounds the previous month. Waste oils, fats and greases classified as “other” fell to 5 million pounds, down from 8 million pounds.

Biofuel producers also consumed 63 million pounds of feedstock classified as other recycled feeds and wastes, up from 60 million pounds in August. The consumption of other biofuel feedstocks not elsewhere specified or identified (NESOI) in the EIA’s report was at 4 million tons in September. Data on NESOI feedstock was not reported for August to avoid disclosure of individual company data.

Full copies of the EIA’s monthly biofuels capacity and feedstock reports is available on the agency’s website

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Renewable Fuels Association

Nov 23, 2021

On Monday, the Renewable Fuels Association, Growth Energy, the National Biodiesel Board, National Corn Growers Association, and National Farmers Union thanked Congress for efforts to “build new markets for farmers and biofuel producers and help lower the carbon intensity of agriculture.”  In a joint letter to the chairs of the House and Senate agriculture committees, U.S. Sen. Debbie Stabenow (D-Mich.) and U.S. Rep. David Scott (D-Ga.), biofuel and farm leaders offered appreciation for key provisions of the Build Back Better (BBB) Act, which passed the House on Friday and was sent to the Senate.

“One of the most pressing challenges facing biofuel producers is ensuring that consumers have consistent access to higher-level ethanol and biodiesel blends, which are lower carbon and lower cost than petroleum fuels. The Biofuel Infrastructure and Agriculture Product Market Expansion provision in the BBB Act helps address this issue and contains much needed funding to ensure consumers have access to these fuels,” they wrote in reference to $1 billion allocated to upgrade refueling and distribution infrastructure meant for higher blends of ethanol.

Advocates also pointed to lifecycle analysis illustrating how improved farm practices continue to drive down the carbon intensity of farming, and therefore the overall carbon intensity of biofuels.

“The BBB Act provides further voluntary incentives like cover crops, nutrient management, buffers, and incentives for locally-led conservation efforts that will help reduce the carbon intensity of agriculture even further, helping biofuel producers provide an even lower carbon liquid fuel at a time when demand for low carbon fuels is rising. As biofuel producers capture the value of low carbon farming practices, farmers would also have the opportunity to benefit in the form of premium prices for their commodities.,” they noted.

The full letter is available here. 

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Ethanol Producer Magazine

Nov 17, 2021

U.S. fuel ethanol production expanded by 2 percent the week ending Nov. 12, according to data released by the U.S. Energy Information Administration on Nov. 17. Stocks of fuel ethanol were down 1 percent.

Ethanol production averaged 1.06 million barrels per day the week ending Nov. 12, up 21,000 barrels per day when compared to the 1.039 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week was up 89,000 barrels per day.

Stocks of fuel ethanol fell to 20.081 million barrels the week ending Nov. 12, down 205,000 barrels when compared to the 20.286 million barrels of stocks reported for the previous week. When compared to the same week of last year, fuel ethanol stocks for the week ending Nov. 12 were down 122,000 barrels.

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Renewable Fuels Association

Nov 16, 2021

As the Biden administration continues to explore options for addressing high gas prices, the Renewable Fuels Association sent a letter to the White House late Monday explaining that strong Renewable Fuel Standard (RFS) volumes and expanded ethanol consumption would help keep pump prices in check.

RFA’s letter  follows media reports that Biden administration officials may be considering lowering RFS volumes based on the mistaken belief that the program somehow is a factor contributing to current high gas prices.

“To be clear, lowering biofuel blending requirements under the Renewable Fuel Standard (RFS) would not reduce the cost of gasoline for American households,” wrote RFA President and CEO Geoff Cooper in a letter to National Economic Council Director Brian  Deese. “In fact, cutting RFS volumes would most assuredly have the exact opposite effect on consumer gas prices. Reducing the domestic usage of low-cost renewable fuels like ethanol would increase demand for petroleum at a time when global oil inventories are already strained and prices are at seven-year highs.”

RFA noted that ethanol presently extends the U.S. gasoline supply by nearly 1.1 million barrels per day, equivalent to the combined crude oil production from Alaska, California, Utah, and Wyoming. According to a renowned economist and energy policy advisor to two former presidents,  the use of roughly 1 million barrels per day of ethanol in the United States has lowered the average price of crude by $6 per barrel, thereby cutting the retail gasoline price by $0.22 per gallon.

The letter also pointed out that gasoline with just 10 percent ethanol (E10) is currently selling for 10-15 percent less (typically 35-50 cents per gallon) than “ethanol-free” gasoline (E0). Higher blends like E15 and E85 offer  even greater savings.

“Rather than undermining the market for low-carbon renewable fuels, we encourage you to follow through on the President’s Day 1 pledge to ‘double down on the liquid fuels of the future,’” Cooper wrote. “This includes immediately proposing strong RFS volumes for 2021 and 2022, and taking swift regulatory action to facilitate the rapid expansion of E15 availability nationwide.

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Ethanol Producer Magazine

Nov 15, 2021

Bioenergy accounted for approximately 3.52 million of the 12 million global renewable energy jobs in 2020, according to an annual jobs report released by the International Renewable Energy Agency (IRENA) in late October. Total bioenergy jobs were down slightly when compared to the 3.58 million reported for 2019.

Liquid biofuels accounted for 2.411 million jobs in 2020. Solid biomass, biogas, and municipal and industrial waste accounted for 765,000, 339,000, and 39,000 jobs, respectively.

The report notes that global biofuels production fell 6 percent last year, from 161 billion liters (42.53 billion gallons) in 2019 to 151 billion gallons in 2020. The decrease is attributed to market impacts associated with the COVID-19 pandemic. Ethanol output was down approximately 8 percent, while biodiesel production was relatively steady.

The U.S. and Brazil remained the world’s dominant ethanol producers last year, with a combined 83 percent share of production. The U.S., Indonesia and Brazil produced a combined 45 percent of biodiesel in 2020. The European Union accounted for 31 percent of biodiesel production.

Latin America accounted for 44.4 percent of global biofuel fuels jobs last year. Asia accounted for 33.6 percent, while North America accounted for 11.8 percent and Europe accounted for 10 percent. The relatively low labor levels in the U.S. and Europe are primarily attributed to highly mechanized agricultural operations in both regions.

According to the report, 368,000 of the world’s 765,000 solid biomass jobs are located in the European Union. An additional 188,000 jobs are located in China, with 58,000 jobs in India and 44,500 jobs in the U.S. In the U.S., 32,442 jobs were in wood biomass fuels, with 12,039 jobs in biomass power.

China accounted for 145,000 of the 339,000 global biogas jobs last year. India accounted for an estimated 85,000 biogas jobs, while 76,000 biogas jobs were located in the European Union. The number of biogas job in the U.S. was not available.

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Reuters

Nov 5, 2021

NEW YORK, Nov 5 (Reuters) - The U.S. Environmental Protection Agency has rejected so far one petition from an oil refiner to be exempted from the nation's biofuel blending laws for the 2019 compliance year, EPA's website showed on Friday.

The move comes at a time when the oil and biofuel industries await an indication from the Biden administration on how it will approach blending requirements under the U.S. Renewable Fuel Standard (RFS). Though the EPA, which administers the RFS, rejected the one petition from 2019, it still has to decide on 32 pending petitions for that year.

Under the RFS, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix, or buy tradable credits from those that do. Refiners can request a waiver from the EPA that would exempt them from those requirements if they can prove the obligations would do them financial harm.

During the coronavirus pandemic, the EPA delayed a decision on blending requirements for 2021, and a finalized rule has been late by nearly a year. The deadline for 2022 requirements is the end of this month.

The oil industry and the biofuels industry have been at odds over the regulations for years. The biofuels industry says the exemptions hurt demand for their products, while independent refiners reject that claim and say that exemptions are needed for smaller refineries to stay afloat.

Aside from the 2019 compliance year, EPA's website shows that there are 28 pending petitions for 2020 and three pending petitions for 2021.

The EPA was to decide on a petition from United Refining Co (RAPPLU.UL) by Friday, after the company filed a lawsuit against EPA administration for the delay in deciding on the company's 2019 exemption petition.

United Refining did not immediately respond to a request for comment.

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Renewable Fuels Association

Nov 4, 2021

The Renewable Fuels Association today thanked a bipartisan group of seven Midwestern governors for their efforts to explore what actions can be taken to allow the year-round sale of E15 in their states.

In  a letter sent to EPA Administrator Michael Regan  today, the governors seek guidance from the agency on how best to pursue a specific provision of the Clean Air Act that allows states to establish a “level playing field” for E15. The governors’ letter follows a recent D.C. Circuit Court decision  that found in favor of oil refiners and overturned EPA’s 2019 regulation that finally allowed the year-round sale of E15 in conventional gasoline markets.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” the letter states. “Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and state governments have invested hundreds of millions of dollars in recent years to expand consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision threaten to strand these public and private investments, but it also jeopardizes the progress we’ve made toward cleaning up our fuel supply and reducing emissions from transportation.”

Commenting on the letter, RFA President and CEO Geoff Cooper said, “We sincerely appreciate the efforts of these governors to protect and expand market opportunities for the region’s farmers and ethanol producers. The governors should be applauded for working together to proactively seek solutions at the state level, rather than waiting for Washington to clean up yet another regulatory mess created by the oil industry. Ethanol producers and farmers stand with these governors, and we will leave no stone unturned in our pursuit of an open and competitive marketplace for E15 and other lower-cost, lower-carbon ethanol blends. We encourage EPA to expeditiously respond to the governors and open the dialog needed to remove the outdated and absurd regulatory barrier to summertime sales of E15 in these states.”

Governors signing the letter were Kim Reynolds (R-Iowa), Pete Ricketts (R-Nebraska), Tim Walz (D-Minnesota), Tony Evers (D-Wisconsin), Doug Burgum (R-North Dakota), Kristi Noem (R-South Dakota), and Mike Parson (R-Missouri). In addition, Gov. Laura Kelly (D-Kansas)  sent a similar letter to EPA  in recent weeks. This bloc of eight contiguous states consumes approximately 13 billion gallons of gasoline annually. A universal move from E10 to E15 across these states would expand ethanol consumption by nearly 700 million gallons and boost corn demand by 225 million bushels.

Read the original news release here

Renewable Fuels Association

Oct 28, 2021

As leaders from around the world descend on Glasgow, Scotland for the 26th U.N. Climate Change Conference, also referred to as COP26, the Renewable Fuels Association reminds them that ethanol and other renewable fuels are available—today—to jumpstart global decarbonization efforts. A new  one-page fact sheet  released by RFA today spotlights recent research and data proving that ethanol is an immediate solution for cutting greenhouse gas emissions from transportation. 

“Ethanol already cuts carbon emissions in half compared to gasoline; with smart policy measures, ethanol can do even more,” said RFA President and CEO Geoff Cooper. “Ethanol can serve as a zero-emissions fuel for cars and trucks while also helping to decarbonize the aviation, marine, and stationary power generation sectors. That’s why our members  have unanimously committed  to achieving a net-zero carbon footprint by 2050 or sooner. We urge world leaders gathering for COP26 to take a closer look at ethanol and encourage them to include a prominent role for renewable liquid fuels in their national decarbonization plans.”

In  a July letter to President Biden,  RFA’s members pledged that ethanol will achieve a net-zero carbon footprint  by mid-century,  if not well before, as the supply chain adopts CCUS technologies; uses more renewable energy to power biorefineries; and expands carbon-efficient feedstock production practices.

At the same time, they noted it also requires simple action from Washington. To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard; deployment of more flex-fuel vehicles; and support for broad adoption of carbon capture, utilization and sequestration technologies.

Ethanol producers from across the country, from California to New York, have signed onto this pledge, Cooper noted, and it is featured in an ad campaign currently running in select Morning Consult email newsletters.

For more information, visit  EthanolRFA.org/pledge.

Recent Research on Ethanol and Carbon Emissions:

  • In January, scientists affiliated with Harvard, MIT, and Tufts University published an analysis finding that corn starch ethanol produced in the United States reduces GHG emissions by 32 to 62 percent compared to gasoline, with a central best estimate of 46 percent.
  • In February, Life Cycle Associates released a report showing that the use of ethanol and other biofuels under the Renewable Fuel Standard has reduced GHG emissions by  980 million metric tons  since 2008.
  • And in May, experts at the Department of Energy’s Argonne National Laboratory published a study demonstrating that average corn ethanol reduces GHG emissions by  44 to 52 percent  compared to gasoline, right in line with the findings from the January study.

Read the original story here.