In the News
Sep 20, 2024
The Energy Futures Initiative Foundation, led by Ernest J. Moniz, the 13th U.S. Secretary of Energy, today released a new study detailing pathways to further decarbonize ethanol to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.
“Low-carbon liquid fuels will be essential for decarbonizing transportation, and ethanol has been the leader in the move to affordable low-carbon fuels,” said Ernest J. Moniz, the 13th Secretary of Energy and EFIF president and CEO. “Through this research, we identified a portfolio of relatively low-cost solutions that can take ethanol close to a net zero fuel by 2035. In addition to being the most effective, scalable, and affordable low-carbon fuel today for vehicles, decarbonized ethanol also has the potential to help provide Sustainable Aviation Fuel. This market can help sustain the ethanol supply chain as a major driver of the rural economy.”
The EFIF research found nine currently available and affordable measures, which together could lower the carbon intensity (CI) score of renewable vehicle fuels to near-net-zero by 2035 and to net-zero or negative emissions by 2050. Effective measures included
Carbon Capture, Utilization, and Storage (CCUS) of the fermentation process;
Low carbon energy use at biorefineries including using combined heat and power generation with biomass and using carbon-free electricity;
Climate smart agriculture practices, including planting cover crops, no-till farming, using enhanced efficiency fertilizers, and fertilizer management practices.
To accelerate adoption of these practices, the report outlines policy recommendations such as a call for timely guidance on the 45Z clean fuels production tax credit slated to take effect in 2025 under the Inflation Reduction Act.
The research also looks at the potential of lower-carbon ethanol to help reduce emissions for on-road fuels as well as to close the “emissions gap” in hard-to-abate sectors like aviation.
The research, sponsored by Growth Energy, included months of research by EFIF staff to analyze the carbon intensity reduction potential, feasibility, and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S. All of the nine initiatives ultimately recommended are currently in use at select facilities and farms.
“EFIF’s recommendations are as practical as they are robust, reflecting innovations our members and their farm partners are already embracing,” said Emily Skor, CEO of Growth Energy, the largest ethanol trade association in the country. “We are proud of our industry’s progress to date and look forward to seeing biofuels continue to deliver on ambitious carbon reduction goals.”
The full EFIF study will be released in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC.
Read the original story here.
Sep 12, 2024
Gevo, Inc. (NASDAQ: GEVO), a leading developer of net-zero hydrocarbon fuels and chemicals, is pleased to announce that it has entered into a definitive agreement to acquire the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy, LLC (“Red Trail Energy”) for $210 million.
Acquisition highlights:
The Adjusted EBITDA1 from Red Trail Energy ethanol and CCS assets, when combined with Adjusted EBITDA1 from Gevo’s renewable natural gas (“RNG”) business, and other businesses, including Verity, is expected to make Gevo’s Adjusted EBITDA positive in 2025.
The purchase price includes the ethanol production asset and the CCS asset. Gevo expects that its capability of marketing carbon abatement in conjunction with delivery of advanced liquid fuels should deliver superior value to shareholders.
This acquisition is consistent with Gevo’s strategy while providing an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is well positioned to serve the U.S. and Canadian markets.
Synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota, by providing access to a wholly owned CCS site and additional supply of low carbon intensity (“CI”) ethanol.
The acquisition includes existing CCS assets with total sequestration capacity of 1 million metric tons per year, of which 160,000 metric tons per year are currently being utilized. This site could accommodate many future Net-Zero-type and related projects.
Accelerates Gevo’s fundamental capabilities related to feedstock procurement, plant operations, and the business of carbon abatement, which are expected to benefit Net-Zero 1 and other future SAF projects.
MANAGEMENT COMMENTARY
Gevo CEO, Dr. Patrick Gruber:
“We accomplish several things with this investment. It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation. Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota. This acquisition gives us the opportunity to build capability as a company and is a terrific training ground for our Net-Zero 1 project, as we inherit a trained cadre of employees who understand plant operations.”
“Carbon abatement for fuels and chemicals is core to our business. This acquisition enables immediate market development for sequestered carbon. We expect our ownership of these assets to generate significant near-term and long-term value for our shareholders, while adding new jobs and economic growth to rural communities in the region.”
Red Trail Energy CEO, Jodi Johnson:
“We are proud of what we have accomplished at Red Trail Energy and are excited about the future under Gevo’s leadership. Gevo’s vision for a sustainable future aligns with our philosophy of ‘our farms, our fuel, our future.’ We are confident this acquisition will drive positive change in the renewable energy sector.”
Gevo President and COO, Dr. Chris Ryan:
“As Net-Zero 1 and other production facilities come online, the infrastructure and resources that we will have acquired in North Dakota offer tremendous flexibility for how we might operate in the area. We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS. The CCS well gives us optionality for our Net-Zero 1 carbon sequestration needs. The regional synergies with Net-Zero 1, our development facility in Luverne, Minnesota, and our RNG operations in Northwest Iowa, are fantastic.”
“These assets and their operating team have a strong track record of safe and reliable operations and financial performance. We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.
“I want to welcome the employees of the Red Trail Energy facilities to the Gevo family. We look forward to building upon your cultural commitment to safety, regulatory compliance, operational excellence, and rural communities. I also want to thank our advisors, all of whom were integral in supporting this transaction, positioning Gevo to embark on this exciting phase in the growth of our company.”
ABOUT GEVO
Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including SAF, motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based RNG facilities in the United States. It also owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of their business systems through its Verity subsidiary.
Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
Read the original press release here.
Sep 7, 2024
Karen Tolkkinen’s recent column on ethanol was chock-full of myths, misinformation and half-truths about ethanol (“The time is ripe to rethink ethanol,” Sept. 1). We’d like to set the record straight.
First, there is no “food vs. fuel” conflict with ethanol. One-third of every bushel of corn processed by an ethanol biorefinery returns to the food supply. Only the starch in the corn is converted to ethanol; the protein, fiber, fat and other nutrients are concentrated and fed to livestock and poultry. The University of Minnesota says the 4 million tons of feed produced by the sttate’s ethanol plants is enough to feed nearly every cow, a quarter of all pigs and every single turkey raised in Minnesota.
Food security, quality and availability have improved — both domestically and globally — during the biofuels era, and there is no shortage of food. In fact, one-third of food produced worldwide is wasted each year, according to the United Nations. Meanwhile, U.S. cropland has decreased by 26 million acres since 2007, disproving the myth that ethanol has caused cropland expansion. How is that possible? Because farmers produce more grain on less land each year; Minnesota farmers produced 30% more corn per acre in 2022 than they did in 2007.
Second, Tolkkinen cited just one outlier study — which was rejected and debunked by many other scientists — to argue that ethanol is somehow worse for the environment than gasoline. In reality, researchers from places like the California Air Resources Board, Harvard University, the Massachusetts Institute of Technology and other institutions all agree that today’s corn ethanol reduces greenhouse gas emissions by up to 50% compared to gasoline.
Finally, Tolkkinen misunderstands the biofuels carbon cycle. Plants like corn remove CO2 from the atmosphere as they grow. That same CO2 is rereleased back to the atmosphere when corn is fermented into ethanol and when ethanol is combusted in an engine. The corn ethanol process is simply recycling atmospheric carbon. If CO2 from ethanol fermentation is captured and sequestered via a pipeline (rather than vented), then the amount of CO2 in the atmosphere has been permanently reduced. That’s why policymakers and some science-oriented environmental organizations see enormous greenhouse gas mitigation potential in corn ethanol paired with carbon capture.
Next time, we hope Tolkkinen visits with some of the 20,914 Minnesotans employed in the state’s ethanol industry. They not only know the difference between field corn and sweet corn, but they also know we can simultaneously feed and fuel Minnesota with environmentally friendly ethanol and nutritious co-products.
This letter was submitted by Brian Werner, executive director of the Minnesota Bio-Fuels Association, and Geoff Cooper, president and CEO of the Renewable Fuels Association.
Read the original story here.
Sep 5, 2024
CEDAR RAPIDS, Iowa — Fluid Quip Technologies (FQT), a global leader in advanced technologies for the biofuels, beverage alcohol and biochemical industries, announced strong results from their cutting-edge Low Energy Distillation™ (LED) and Grain Neutral Spirits (GNS) technologies after 12 months in operation at the Three Rivers Energy (TRE) facility in Coshocton, Ohio.
“Our LED and GNS systems have been running at the TRE facility for over 12 months and are providing results that outperform the guarantees of purity and energy reduction,” said Neal Jakel, President at Fluid Quip Technologies. “This represents the third installation of FQT’s proprietary LED systems which are helping ethanol facilities around the world significantly reduce energy consumption and lower their carbon footprint.”
Three Rivers Energy is committed to producing high-quality renewable fuels while reducing its carbon footprint. The success of FQT’s LED and GNS systems aligns with their mission, enabling them to enhance their production capabilities, reduce energy consumption, and optimize their resource utilization.
“The GNS system is producing ultra-pure alcohol exceeding specifications, and we have seen significant energy savings with the LED system over time,” said Eamonn Byrne, COO and Director, Three Rivers Energy. “We’re happy to have partnered with Fluid Quip Technologies to install these state-of-the-art solutions that have driven efficiencies, improved our product portfolio and contribute to a more sustainable future.”
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience within the agricultural processing, corn wet milling and dry grind ethanol industries. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the beverage, biofuels and biochemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.
Read the original press release here.
Sep 4, 2024
The U.S. exported 135.99 million gallons of ethanol and 1.09 million metric tons of distillers grains in July, according to data released by the USDA Foreign Agricultural Service on Sept. 4. Exports of both products were up when compared to July 2023.
The 135.99 million gallons of ethanol exported in July was down when compared to the 145.87 million gallons exported the previous month, but up significantly from the 112.1 million gallons exported in July of last year.
The U.S. exported ethanol to nearly three dozen countries in July. Canada was the top destination for U.S. ethanol export at 62.01 million gallons, followed by the U.K. at 25.14 million gallons and Colombia at 14.16 million gallons.
The value of U.S. ethanol exports reached $323.84 million in July, down from $339.75 million in June, but up from $314.07 million in July 2023.
Total U.S. ethanol exports for the first half of 2024 reached 1.1 billion gallons at a value of $2.48 billion, compared to 795.45 million gallons exported during the same period of last year at a value of $2.23 billion.
The 1.09 million metric tons of distillers grains exported in July was up when compared to both the 945,592 metric tons exported in June and the 984,341 metric tons exported in July 2023.
The U.S. exported distillers grains to approximately 40 countries in July. Mexico was the top destination for U.S. distillers grains exports at 247,903 metric tons, followed by South Korea at 123,725 metric tons and Indonesia at 73,769 metric tons.
The value of U.S. distillers grains exports reached $266.42 million in July, up from $246.28 million the previous month, but down from $294.96 million in July of last year.
Total U.S. distillers grains exports for the first six months of the year reached 6.97 million metric tons at a value of $1.88 billion, compared to 6.08 million metric tons exported during the same period of last year at a value of $1.97 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Sep 3, 2024
Operable U.S. biofuels production capacity increased in June, with gains for both ethanol and renewable diesel, according to data released by the U.S. Energy Information Administration on Aug. 30. Feedstock consumption was up for the month.
Total U.S. biofuel capacity reached 25.122 billion gallons per year in June, up 392 MMgy when compared to May and up 1.631 billion gallons per year when compared to June 2023.
Ethanol capacity expanded to 18.203 billion gallons per year in June, up 70 MMgy from the previous month and up 498 MMgy from June of last year.
Biodiesel capacity was at 2.022 billion gallons per year in June, unchanged from the previous month, but down 64 MMgy when compared to June 2023.
Capacity for renewable diesel and associated biofuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, reached 4.897 billion gallons per year in June, up 322 MMgy when compared to the previous month and up 1.197 billion gallons per year when compared to June of last year.
U.S. biofuel producers consumed 28.584 billion pounds of feedstock in June, up when compared to both the 28.495 billion pounds consumed the previous month and the 28.068 billion pounds consumed in June 2023. The consumption of feedstocks typically used to produce both ethanol and biomass-based diesel in June were up when compared to the same month of last year.
Biofuel producers consumed 24.984 billion pounds of corn in June, down from 25.502 billion pounds the previous month, but up when compared to the 24.747 billion pounds consumed in June 2023. Producers also consumed 129 billion pounds of grain sorghum feedstock in June, up from 91 million pounds in May, but down from 247 million pounds in June of last year.
U.S. biofuel producer consumed 1.267 billion pounds of soybean oil in June, including 578 million pounds consumed at biodiesel plants and 689 million pounds consumed at renewable diesel facilities. Soybean oil consumption was at 1.076 billion pounds in May, with 597 million pounds consumed by biodiesel producers and 479 million pounds consumed by renewable diesel plants, and at 1.207 billion pounds in June 2023, with 627 million pounds of that volume consumed by biodiesel producers and the remaining 580 million pounds consumed by renewable diesel facilities.
Corn oil consumption reached 403 million pounds in June, with 80 million pounds going to biodiesel production and 324 million pounds going to renewable diesel production. Corn oil consumption by biofuel producers was at 341 million pounds in May, including 81 million pounds consumed for biodiesel production and 259 million pounds consumed for renewable diesel production, and at 410 million pounds in June of last year, with 98 million pounds of that volume going to biodiesel production and 312 million pounds going to renewable diesel production.
Canola oil consumption was at 386 million pounds in June, including 162 million pounds consumed by biodiesel plants and 224 million pounds consumed by renewable diesel facilities. Canola oil consumption was at 397 million pounds in May, including 158 million pounds consumed for biodiesel and 239 million pounds consumed for renewable diesel, and at 317 million pounds in June of last year, with 195 million pounds of that volume going to biodiesel production and 122 million pounds going to renewable diesel production.
Biofuel producers also consumed 37 million pounds of other vegetable oils in June, up from 18 million pounds the previous month. The EIA withheld the volume of other vegetable oils that went to biofuel production in June 2023 to avoid disclosure of individual company data.
U.S. biofuel producers also consumed 714 million pounds of yellow grease, 567 million pounds of beef tallow, 57 million pounds of white grease, 21 million pounds of poultry fat, and 18 million pounds of other waste oils, fats and greases in June. Consumption was at 513 million pounds, 449 million pounds, 70 million pounds, 20 million pounds, and 17 million pounds, respectively, in May, and at 550 million pounds, 437 million pounds, 71 million pounds, 12 million pounds and 15 million pounds, respectively, in June 2023.
The EIA withheld data on the consumption of a variety of other feedstock types, including agriculture and forestry residues, other agriculture and forestry products, other recycled feeds and wastes, and other biofuel feedstocks note elsewhere specified or identified in order to avoid disclosure of individual company data.
Additional information is available on the EIA website.
Read the original story here.
Aug 27, 2023
ROCHESTER, Minn.- The Rochester Area Chamber of Commerce released a statement on Monday, Aug. 26 congratulating U.S. Representatives Adam Finstad (R) and Angie Craig (D) for their work with the Congressional Sustainable Aviation Caucus to promote cleaner fuel for commercial airlines and the potential business that support could bring to the state of Minnesota.
It was sentiment that was shared by Richard Syverson, a chairman for the Minnesota Corn Grower Association's Board of Directors.
Sustainable Aviation Fuel (SAF), which ideally reduce carbon emissions for planes by around 50 percent, are often derived from crops like corn or soybeans which could mean expanded business for farms already producing crops for the ethanol industry.
"SAF is kind of an exciting product for us in the ethanol business, we've been promoting our product to the driving public for years and years and still haven't won everybody over to the use in cars, whereas the airlines are coming to us," Syverson said.
The federal government and the state of Minnesota are already incentivizing production and use of SAF through SAF tax credits which reward fuels that reduce carbon emissions in planes by 50 percent or more.
Syverson said with the bipartisan support in the congress he is hoping incentives like this will only increase in scope and length as time goes on.
Brian Werner, executive director of Minnesota Biofuels said that with current incentives, and the U.S. Department of Energy's goal of reducing plane emissions by 50 percent by 2050, it is projected that demand for SAF could be double the demand for ethanol by that time, with private industry hopefully producing 35 billion gallons annually.
Werner said even with continued bipartisan and local support in the state it may take several years to get infrastructure in place for local ethanol producers to get involved in the growing industry, but he said he was optimistic.
"It is going to be a process but it is one we are very excited about because it will produce a lot of new markets," Werner said.
As of 2022, the U.S. Department of Energy says commercial air travel accounted for 2 percent of the world's carbon emissions.
The department hopes that through SAF support programs that it will half that by 2050 and that private industry will be able to support 100 percent of the demand for the biofuel.
Read the original story here.
Aug 27, 2024
The USDA currently predicts fiscal year (FY) 2025 U.S. ethanol exports will reach $4.3 billion. Export volumes are expected to edge up to a record 2 billion gallons, according to the agency’s latest quarterly trade outlook, published Aug. 27.
USDA’s FY 2025 begins Oct. 1, 2024, and ends Sept. 30, 2025. The expected $4.3 billion in FY 2025 ethanol exports is unchanged from the revised FY 2024 forecast. Ethanol export unit value is expected slightly lower following U.S. corn prices, the USDA said in the report.
According to the agency, little change is aggregate sales to top export markets is expected as blending increases in Ontario and Quebec slow, Europe’s ethanol prices moderate further or stabilize, India’s ethanol feedstock supplies recover, and the recovery of Colombia’s blending rates come to an end. Brazil’s 18% import duty on ethanol is expected to keep the arbitrage window closed for U.S. sales.
FY 2024 ethanol exports are raised $300 million from May to a record $4.3 billion, an increase of $800 million over the previous year and $400 million higher than the previous record, which was set in FY 2022. Export volumes for FY 2024 are expected to reach 1.9 billion gallons.
The report indicates that U.S. ethanol is generally more price competitive than Brazilian product, helping to boost global U.S. sales. Canada has become the world’s largest ethanol importer, and the U.S. continues to supply all the country’s ethanol imports, according to the USDA. The U.S. ethanol industry is also the top foreign supplier to the European Union and United Kingdom, which are currently the world’s second and third largest ethanol importers. Other important markets, such as India, Colombia, South Korea, the Philippines, Mexico and Peru, are seeing strong-to-record U.S. sales. The window of arbitrage for U.S. sales to Brazil has remained mostly closed this year due to the 16% duty, which was raised to 18% in January.
Read the original story here.
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Aug 22, 2024
Last week, the U.S. Grains Council (USGC) and the American Institute in Taiwan (AIT) jointly organized a conference on the use applications and sustainability benefits of ethanol in the transportation sector. The Council also signed a memorandum of understanding (MOU) with Taiwan’s largest state-owned oil refinery, Chinese Petroleum Corp Taiwan (CPC), agreeing to mutually pursue research initiatives and technical exchange programs with the goal of introducing gasoline blended with 10 percent ethanol (E10) in Taiwan.
“Since 2007, CPC Taiwan has offered E3 at numerous fuel stations but there has been lack of supportive policy to assuage consumer fears about engine damage from ethanol as well as costs for ethanol imports and infrastructure upgrades,” said Michael Lu, USGC director in Taiwan. “However, the government has gradually realized that relying solely on electric vehicles to reduce transportation carbon emissions will not achieve its 2050 net-zero goal and strongly encouraged the Council’s MOU with CPC Taiwan to facilitate biofuel industry growth here.”
Lu, USGC Regional Ethanol Consultant Kent Yeo and USGC SAF Consultant Mark Ingebretson represented the Council at the event, which featured presentations on the needs of the Taiwanese transportation industry and from U.S. producers and experts on the benefits and availability of U.S. ethanol.
AIT Ag Section Chief and Acting Deputy Director Erich Kuss offered a welcome address to attendees and Secretary General Kung Ming-Hsin remarked that Taiwan has mobilized to move towards a net-zero future, which will prominently feature electrification of vehicles and carbon-free transportation. However, in many cases like for rural consumers, blending gasoline with ethanol is the best carbon reduction option for road vehicles.
Ingebretson then spoke to participants about the latest developments in alcohol-to-jet (ATJ) technology and the current supply and economic efficiency of processing U.S. corn into biofuel. The afternoon’s session focused on road uses of ethanol, including a presentation from Yeo regarding recent success stories in biofuel policy advancements in the Southeast Asia (SEA) region.
“The strong interest in ethanol in Taiwan, including from top officials in its government and its oil industry, is very encouraging as we continue to push for higher ethanol adoption in the transportation sector here. Taiwan stands ready to adopt a higher ethanol blending rate, and since it is already a major oil refining hub, the country boasts highly-capable storage and blending facilities and exhibits excellent standards for fuels handling.” Yeo said. “I’d like to extend my thanks to the AIT for its partnership at the conference and reiterate the Council’s commitment to continue supporting Taiwan policymakers and industry in their decarbonizing journey through technical expertise and advisory in the bioethanol space.”
Read the original story here.
August 15, 2024
The U.S. was home to 187 ethanol plants with a combined capacity of more than 18.01 billion gallons as of the end of 2023, according to data released by the U.S. Energy Information Administration on Aug. 15.
When compared to the previous year, the number of plants held steady, but capacity was up 438 million gallons per year. EIA data indicates one plant located in South Carolina closed between Jan. 1, 2023 and Jan. 1, 2024, while one new facility in Texas was brought online.
More than 70% of U.S. biodiesel capacity is located in the Midwest, with 6% on the East Coast, 14% in the Gulf Coast region, and 9% on the West Coast.
Additional data is available on the EIA website.
Read the original story here.
Aug 13, 2024
By Emily Skor
CEO of Growth Energy
For years, Growth Energy has highlighted the expertise of the nation’s top GHG lifecycle scientists to counter misinformation about American biofuels. Sound science is the bedrock of our legal strategy, which aims to protect the Renewable Fuel Standard against misguided challenges lodged year after year by certain critics of renewable fuels. Now, experts in the fields of biomass and agricultural economics are taking on the challenge directly by filing their own amicus brief challenging claims offered by plaintiffs in Center for Biological Diversity (CBD) v. EPA et al. (Case No. 23-1177), in the U.S. Court of Appeals for the District of Columbia Circuit.
In CBD’s case, plaintiffs argue that the climate benefits of biofuels are undermined by the negative impacts of cutting into previously undisturbed land—an argument we know is based on debunked research.
In response, researchers from the University of Illinois Chicago, University of Illinois Urbana-Champaign, University of Idaho, Oak Ridge National Laboratory, South Dakota State University, University of California-Davis and other institutions are setting the record straight and putting the best science before the D.C. Circuit.
Specifically, they point out, “When the RFS was first adopted in 2007, some analysts predicted its targets for producing ethanol in the United States would generate major land-use changes and that emissions associated with the conversion of ‘natural land’ to ‘cropland’ would result in higher GHG emissions than gasoline.” They continued, “Experts in the field of biomass and agricultural economics have demonstrated that much of the outlier research was based on flawed assumptions and methods related to land use.”
For example, they note, the “satellite imagery at the resolution used in those early studies failed to accurately distinguish between land that has never been tilled and cropland that was temporarily fallow ... outlier researchers have also erroneously treated ‘cropland pasture’ as ‘natural’ land not previously tilled.”
Now, they explain, real-world data is available showing, “In research examining farmland over a 36-year period, only 1.8 percent of the 1,000 land parcels outlier researchers described as 'converted' appeared to fall into the category of untilled grassland, while 98.2 percent was in agriculture and toggled between crop and non-crop uses.” They added, “For the small percentage of previously untilled lands described as ‘converted,’ there is no causal evidence linking the RFS or biofuels to any such change in use.”
In short, they write, “Analyses based on more complete, updated data found that the average carbon intensity of biofuels is significantly less than conventional gasoline. Over time, as technologies and practices advance, and with various incentives the federal government has put into place, that benefit is expected to continue growing at an accelerated pace.”
Certainly, they aren’t the first experts to correct the record on biofuels. In 2022, the U.S. Department of Energy (DOE) even sent a letter to Growth Energy sharing concerns “about the methods and assumptions used” by Tyler Lark, who has authored numerous discredited studies contradicting mainstream science on biofuels.
The new amicus brief takes peer review to the next level, with top academic experts explaining directly to the courts why—when it comes to ethanol’s environmental benefits—there is no longer any genuine debate. Hopefully, those backing misleading challenges to the RFS will take note and join us as we continue to expand access to low-carbon biofuels at the gas pump.
Read the original story here.
Aug 8, 2024
The U.S. exported 145.87 million gallons of ethanol and 645,592 metric tons of distillers grains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 6. Exports of both products were up when compared to June 2023.
The 145.67 million gallons of ethanol exported in June was down slightly from the 154.39 million gallons exported the previous month, but up when compared to the 111.1 million gallons exported in June of last year.
The U.S. exported ethanol to more than three dozen countries in June. Canada was the top destination for U.S. ethanol exports at 44.74 million gallons, followed by the U.K. at 25.77 million gallons and India at 14.73 million gallons.
The value of U.S. ethanol exports reached $339.75 million in June, up from $332.99 million in May and $313.04 million in June 203.
Total U.S. ethanol exports for the first half of the year reached 962.76 million gallons at a value of $2.16 billion, compared to 684.35 million gallons exported during the same period of last year at a value of $1.91 billion.
The 945,592 metric tons of distillers grains exported in June was down when compared to the 1.01 million metric tons exported the previous month, but up slightly from the 943,740 metric tons exported in June 2023.
The U.S. exported distillers grains to approximately 43 countries in June. Mexico was the top destination for U.S. distillers grains exports at 200,900 metric tons, followed by South Korea at 116,222 metric tons and Indonesia at 100,967 metric tons.
The value of U.S. distillers grain exports reached $246.28 million in June, down from $262.97 million the previous month and $302.31 million in June of last year.
Total U.S. distillers grains exports for the first half of 2024 reached 5.87 million metric tons at a value of $1.62 billion, compared to 5.09 million metric tons exported during the same period of 2023 at a value of $1.68 billion.
Additional data is available on the USDA FAS website.
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Jul 30, 2024
Fluid Quip Technologies (FQT) today announced the successful completion and commissioning of the world’s largest MSC™ System to date at Tharaldson Ethanol’s 175 million-gallon biorefinery in Casselton, North Dakota. This marks the twelfth FQT MSC™ system installed world-wide and expands the production of corn fermented protein, a high-quality protein ingredient in animal feed, providing superior nutrition solutions for pet, aquaculture and other animal feed markets which has up to a 40% lower carbon-intensity than competing products.
“Our MSC™ Technology is critical to not only creating a high-quality protein ingredient for pet food, but also allowing ethanol plants to achieve greater corn oil yields” said Neal Jakel, President of Fluid Quip Technologies, “FQT is excited to commission our largest MSC™ System and continue to collaborate with our customers to maximize the value of every kernel of corn. The project is a testament to the market and value the team has achieved as nutrition customers look for more corn fermented protein to utilize in their rations.”
Fluid Quip Technologies provided the MSC™ Technology as well as the engineering, design, procurement, construction management and startup services for the project. The completion of this MSC™ System brings overall production capacity of FQT MSC™ protein products to over 750,000 tons per year. The thirteenth FQT MSC™ system is currently under construction at the Ensus UK Limited’s facility in the UK.
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and process engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience and know-how within the corn wet milling and dry grind ethanol industries. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the biofuels and biochemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.
Read the original press release here.
Jul 31, 2024
U.S. fuel ethanol production reached a record high of 1.109 million barrels per day the week ending July 26, up slightly from the previous record of 11.08 million barrels per day set late 2017, according to data released by the U.S. Energy Information Administration on July 31. Both fuel ethanol production and stocks were up 1% when compared to the previous week, while exports were up 2%.
Fuel ethanol production averaged 1.109 million barrels per day the week ending July 26, up 14,000 barrels per day when compared to the 1.095 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending July 26 was up 42,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 23.973 million barrels, up 250,000 barrels when compared to the 23.723 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 26 were up 1.113 million barrels.
Exports of fuel ethanol averaged 58,000 barrels per day the week ending July 26, up 1,000 barrels per day when compared to the 57,000 barrels per day of exports reported for the previous week. When compared to the same week of last year, exports for the week ending July 26 were down 83,000 barrels per day. No fuel ethanol imports were reported for the week ending July 26.
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Jul 19, 2024
An opinion piece published in the Republican Eagle on July 12 by the Lake Pepin Legacy Alliance presented a one-sided view of the environmental benefits of ethanol and mislead readers into believing that ethanol is not a climate-friendly alternative to petroleum (“Maintain Climate Guardrails in Farm Bill”).
Contrary to the assertion in the piece, research from federal agencies including the U.S. Department of Energy and the U.S. Department of Agriculture have confirmed that ethanol is a low-carbon fuel with 40-50 percent less emissions than petroleum on a lifecycle basis.
The 2022 study cited by the authors to claim that ethanol is worse for the climate has been debunked by climate scientists upon peer review. Those researchers noted that the discredited study made “questionable assumptions,” “double counted” emissions, and used “outdated and inaccurate projections” to come to a biased conclusion against ethanol.In reality, ethanol not only reduces greenhouse gas emissions but also replaces toxic aromatic compounds in gasoline and reduces carcinogenic emissions like benzene, toluene, xylene, and other hydrocarbons that increase the risk of cancer, according to research conducted by the Minnesota-based Hormel Institute.
Had the authors undertaken a comprehensive review of the science, they would have found that the evidence overwhelmingly shows that ethanol has positive climate and human health benefits.
While we may not see eye-to-eye on that point, we agree with the authors on the need to maintain climate funding in the Farm Bill as a way to further assist Minnesota growers in implementing conservation practices like cover crops and no-till farming that will sequester more carbon in the soil, reduce runoff, and lower the carbon intensity of ethanol on a lifecycle basis.
We look forward to working with them, and our congressional federal delegation, to support Minnesota’s environment and economy through a timely Farm Bill reauthorization.
Brian Werner
Executive Director, Minnesota Biofuels Association
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Jul 15, 2024
CoBank maintained its positive outlook for U.S. ethanol production in its latest Quarterly Research Report, released July 11, with higher margins and a strong export market continuing to benefit ethanol producers.
According to CoBank, sustained lower corn and natural gas prices have helped boost ethanol margins. Well-managed facilities will continue to take advantage of the higher margin environment in the months ahead, the report predicts.
The recent narrowing of the ethanol price discount to gasoline could affect price-sensitive markets, CoBank said in the report, but noted that the summer driving season does help offset some price challenges.
While domestic ethanol demand has tracked lower in tandem with decreased gasoline demand in recent months, export demand has been strong. Within the report, CoBank cites the USDA’s May forecast that 2024 fuel ethanol exports could reach $4 billion this year, matching the fiscal year 2022 record.
CoBank’s report also addresses the outlook for corn, explaining that the USDA shocked the market at the end of June with higher-than-expected totals on corn acreage and stocks. Planted corn acreage is up nearly 2% when compared to data gathered as part of the USDA’s March Prospective Plantings survey. Corn stocks were also well above expectations. CoBank said the larger planted acreage and higher stocks should provide some cushion against potential production losses from widespread floods that occurred across Iowa, Minnesota and South Dakota in June. In addition to flooding, the U.S. corn crop also risks yield losses form expected extreme heat this summer.
A full copy of the report is available on the CoBank website.
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