In the News
April 28, 2016
By U.S. Water
U.S. Water, the leading national provider of integrated solutions for water treatment, will give three technical presentations during the upcoming Fuel Ethanol Workshop, June 20 – 23, 2016 at the Wisconsin Center, Milwaukee, Wisconsin.
During the FEW program, U.S. Water’s Jared Galligan, applications engineer, will provide an industry update on water re-use and reduction. Michael Mowbray, U.S. Water’s director of product management, will discuss phosphorus discharge restrictions and their impact on plant cooling systems, and Mitch Manstedt, U.S. Water’s strategic business leader - ethanol, will present on plant reliability, focusing on updating outdated controls and equipment in aging facilities.
At U.S. Water’s booth #223, the company will feature its integrated solutions and “Together We Can” approach to solving the challenging water, energy and process needs of ethanol facilities. In addition, the copmany will share case study results obtained through use of the Ethanol Final Filter. This bolt-on, mechanical/chemical system, brings unique value to the ethanol industry due to its ability to improve final fuel quality through the removal of both existent and potential sulfate. In addition to sulfate removal, the EFF addresses issues of color, turbidity, acidity, pH, chloride and iron.
“The ethanol industry is one of U.S. Water’s key markets,” said Al Bly, U.S. Water’s founder and CEO. “Our company was created in 1997, and had its early successes by improving the efficiency of ethanol plants. Our continued commitment to the ethanol industry, coupled with our integrated solutions model combines the best equipment, engineering services, and sustainable chemistry. This allows us to resolve the ‘root cause’ of the ethanol plant’s problem and improve its overall efficiency.”
Read the orignal story: US Water to present at Fuel Ethanol Workshop
April 28, 2016
By Leif Magnusson
We have heard a lot about the importance of manufacturers during this election season, and as the head of a manufacturing business in Nebraska, I couldn’t agree more. But what many candidates – and voters – do not understand is how essential the strength of our agriculture sector is for manufacturing jobs as well.
For manufacturers of farm equipment like my company, CLAAS of America, our business’s fortunes rise and fall with the prosperity of American farmers. Our company manufactures combine and forage harvesters (among other products) in Omaha, Nebraska, where we support hundreds of good-paying manufacturing jobs. As chairman of the Association of Equipment Manufacturers (AEM), I hear similar things from other colleagues throughout the industry about the conditions facing manufacturers and their customers.
That is why equipment manufacturers have a strong voice on agricultural issues, which includes our support for the Renewable Fuel Standard (RFS). It is a mistake to think of the debate over the RFS as a provincial issue affecting only farmers and ethanol producers. In reality, protecting the RFS is of utmost importance to a number of manufacturers who depend on a strong and thriving agricultural economy.
The Renewable Fuel Standard is good policy. It reduces our nation’s dependence on foreign oil, helps cut net greenhouse gas emissions and generates tens of billions of dollars for our economy each year.
But ethanol production is not just a farmers’ issue; it supported almost 28,000 manufacturing jobs and generated over $2.75 billion for manufacturers in the United States just last year. Elected leaders who want to support manufacturing in America can do just that by protecting the RFS and ensuring that the government honors its statutory commitments to the RFS.
This June presents a great opportunity for the Obama administration to support manufacturers and agricultural producers when it issues the RVO requirements for 2017. The administration should heed the recent call by a bipartisan group of senators and restore those requirements to the levels intended by Congress.
Of course, the RFS is not the only way to promote a strong agricultural sector; policymakers need to make a lot of various smart decisions to ensure that America is supporting its farmers. But the RFS is still an important tool to both strengthen American farming and promote the next generation of biofuels.
That is why equipment manufacturers support a strong Renewable Fuel Standard: Because promoting ethanol is not just critical to the continued growth of our agricultural sector, it is also an important way our elected leaders can help manufacturers thrive.
Leif Magnusson is President of CLAAS Global Sales America Inc. and Chair of the Board of Directors of the Association of Equipment Manufacturers.
Read the original story: RFS Central to America’s Manufacturing Strength
April 22, 2016
By Erin Voegele
The U.S. EPA has published renewable identification number (RIN) data for March, reporting nearly 1.52 billion RINs were generated during the month, bringing the total for the first three months of the year to more than 4.37 billion.
Nearly 15.34 million D3 cellulosic RINs were generated in March, bringing the net total for the first quarter of 2016 to 30.15 million. More than 1 million D3 RINs have been generated for ethanol so far this year, along with 17.83 million for renewable compressed natural gas and 12.7 million for renewable liquefied natural gas. Most, 28.45 million, D3 RINs have been generated by domestic producers, with 3.09 generated by importers.
In addition a net total of 114,835 D7 cellulosic diesel RINs were generated in March, marking the first time D7 RINs were generated this year. All were generated for cellulosic heating oil by importers.
More than 4.56 million D5 advanced biofuel RINs were generated in March, bringing the net total for the first three months of the year to 12.6 million. Nearly 6.2 million D5 RINs have been generated for ethanol, with 4.15 million generated for naptha, 567,781 generated for heating oil, and 1.69 million generated for nonester renewable diesel. All 12.6 million D5 RINs generated so far this year have been generated by domestic producers.
Nearly 1.25 billion D6 renewable fuel RINs were generated in March, bringing the net total for the first quarter of the year to nearly 3.68 billion. The majority, 3.6 billion, were generated for ethanol, with 1.99 million generated for biodiesel, and 74.6 million generated for nonester renewable diesel. So far this year, 3.6 billion D RINs have been generated by domestic producers, with 4.37 million generated by importers and 74.6 million generated by foreign entities.
Nearly 253.38 million D4 biomass-based diesel RINs were generated in March, bringing the net total for the first three months of the year to 650.25 million. Most, 533.45 million, were generated for biodiesel, with 116.76 million generated for nonester renewable diesel. Nearly 530.3 million D4 RINs were generated by domestic producers, with 64.76 million generated by importers and 55.57 million generated by foreign entities.
As of the close of March, the EPA estimates 4.37 billion RINs have been generated so far this year, with 133.12 million retired, 228.15 million locked and available and 4.01 billion unlocked and available.
Read the original story: EPA: 1.52 billion RINs Generated in March
April 18, 2016
By Erin Voegele
The U.S. EPA delivered the proposed rule for the 2017 renewable fuel standard (RFS) to the White House Office of Management and Budget on April 15. OMB review marks a final step before the proposed rule is published in the Federal Register and opened for public comment.
The proposed rule contains 2017 renewable volume obligations (RVOs) for renewable fuel, advanced biofuel and cellulosic biofuel. It also contains the 2018 RVO for biomass-based diesel. The 2017 standard for biomass-based diesel was finalized in a previous RFS rulemaking.
Delivery of the proposed rule to the OMB seems to indicate the EPA is on track to finalize the final rule for 2017 RVOs in line with the Nov. 30 statutory deadline. In February, EPA Administrator Gina McCarthy testificed during a congressional hearing that the agency has taken steps to improve implementation of the RFS intends to keep on track with future RFS rulemakings.
The EPA delivered the proposed rule to set 2014, 2015 and 2016 RVOs to the OMB on May 7, 2015. The proposed rule was released for public review less than one month later, on May 29.
Read the original story here : EPA Submits 2017 RFS Rule To White House OMB For Review
April 18, 2016
WASHINGTON - Today is Tax Day. While hardworking Americans will recieve an average of more than $2,800 in refunds, did you know that oil producers and refiners receive $4 billion - $6 billion in federal tax incentives and subsidies every year? What makes that worse is that many of those favorable tax provisions never expire.
The U.S. ethanol industry agreed to let its tax incentive expire in 2011, while oil producers continue to cling to subsidies that have existed for more than a century. The Joint Committee on Taxation recently estimated that elimination of certain "fossil fuel preferences" (i.e. subsidies) would save U.S. taxpayers at least $24.5 billion - or roughly $210 per U.S. household - between 2015 and 2020.
"Big Oil needing any government assistance is preposterous," said Renewable Fuels Association President and CEO Bob Dinneen. "Why would an incumbent industry that has a virtual monopoly at the pump need taxpayer dollars to compete?
"On this tax day, Congress should seriously consider repealing this absurb and costly corporate welfare. Consumers will benefit when there is a truly a free market in motor fuel, when alternatives like ethanol have access to the pump, when a variety of biofuel blends (E15, E25, E85) are accessible to consumers and when taxpayers no longer have to subsidize the most profitable industry on the planet. Until then, programs like the Renewable Fuel Standard are all we have to compel some level of competition and cost-control on an otherwise broken and unfair market."
Read the original story here : Think It's Fair Big Oil Receives $5 Billion Per Year In Tax Subsidies? Neither Do We
April 14, 2016
By Erin Voegele
The U.S. Energy Information Administration has released the April edition of its Short-Term Energy Outlook, predicting ethanol production this year will increase when compared to 2015 levels.
According to the EIA, ethanol production averaged 966,000 barrels per day last year. The agency currently predicts production will increase this year and next year, averaging between 970,000 and 980,000 barrels per day in 2016 and 2017. In its March STEO, the EIA predicted ethanol production would average slightly more than last year's 966,000 barrel per day level during the same timeframe.
Ethanol consumption averaged approximately 910,000 barrels per day last year, and is forecast to increase to an average of 970,000 and 980,000 barrels per day in 2016 and 2017. This level of consumption results in the ethanol share of the total gasoline pool averaging 10 percent both this year and next year. This summer, the EIA projects ethanol blending into gasoline will increase by 20,000 barrels per day when compared to last summer's level of 950,000 barrels per day. According to the EIA, it does not expect significant increases in E15 or E85 consumption over the forecast period.
Read the rest of the story here : EIA : 2016, 2017 Ethanol Production To Increase Over 2015
April 12, 2016
By Marc J. Rauch
A motorcycle blog recently posted a piece attacking the use of E15 in engines.The blog post relied on patently false information to make its claims against E15, and recycled the misinformed criticisms that are often levied against the fuel by those who rely on erroneous anecdotal evidence and ignore fact. Marc Rauch, Executive Vice President and Co-Publisher of The Auto Channel, penned a response to the baseless claims made in the original blog post and set the record straight on the benefits of E15. His response can be viewed in full below:
I read your post about E15 along with the comments from your friend ‘Stump.’ I'm surprised that you failed to warn motorcycle riders of the danger of riding their bikes too close to large areas of water because a Kraken monster could rise up out of the depths at any moment to seize them.
I understand that the Kraken is a mythological creature, but as long as you’re peddling fairytales you might as well go all the way.
Owning and riding a motorcycle, like owning and driving a car, doesn't magically imbue the owner with any great technical knowledge. Therefore owners of bikes and cars, like you guys, should stay away from making claims when it’s clear that you don't have any technical knowledge whatsoever. The claims you posted are completely false.
The only uncertainty in my mind is why you would make these false claims – is it just because of ignorance or are they intentional lies. If the false claims come from StarTron then I'm reasonably certain they are lies; lies made to help sell their snake oil products. Perhaps they should have stayed dedicated to making car polish products.
You posted that “Gums rapidly form in the fuel tank and fuel delivery systems as ethanol fuels age.” The substance you are referring to, which some call sludge or gunk, is caused by gasoline. This will form whether there is ethanol present in your fuel or not. This problem has been around for as long as gasoline has been used in internal combustion engines (more than 100 years). Engine treatment and cleaner products have been around for nearly as long. So to ascribe the problem to ethanol as if it’s something exclusive to ethanol is preposterous.
To solve the problem of sludge/gum/gunk build up you use ethanol or a product that emulates ethanol. When you wash your hands with soap, the soap doesn't make your hands dirtier; the soap facilitates the cleaning process. If your engine has a great deal of build up, then you will have to eventually have it cleaned. This may also require changing the fuel filter and other parts. This is standard procedure in vehicle ownership.
It may be that going from long-term use of ethanol-free gasoline to an ethanol blend will cause the sludge/gum/gunk to breakaway, but that’s what you would want to happen in order to clean your engine. However, if you have already been using E10 or if you recently had your engine cleaned and the fuel filter changed, then E15 won't cause any problems with the gum/gunk/sludge because there will be very little of it; in fact, there may be none.
Your post continues by going deeper into myth. Ethanol does not attract moisture from the atmosphere. Moisture (water) can form in a fuel tank, but it forms because of condensation. Ethanol does not exacerbate the condensation process. And the problem of condensation has been a problem with internal combustion engines for as long as internal combustion engines have existed. Condensation can occur with gasoline or even if the fuel tank is completely empty; that’s how condensation works. So again, to ascribe this problem to ethanol as if it’s specific to ethanol is ridiculous.
Moreover, if your fuel tank and fuel system did get water in it there are two ways to remove the water: First is to drain the tank and system. The Second, and faster solution, is to add something like Dry Gas. Dry Gas is ethanol. So ethanol solves the problem, it doesn't cause the problem.
Phase separation is actually a problem with gasoline, not ethanol. Ethanol breaks down water molecules and holds it until it’s expelled through the exhaust system when the engine is running. Gasoline does not have that same ability to break down and hold the water. That’s when you get phase separation. That’s when the engine will not start.
It is true that ethanol can reach a point where there is too much water and the water will lie separately from the ethanol, but this is several times more water than gasoline can handle. So if there’s a situation in which you inadvertently poured some water into your fuel tank, you better hope that you have ethanol and not gasoline in the tank.
Your post continues with more silliness. You write that ethanol fuels break down quickly. It’s gasoline that breaks down quickly, which is why gasoline stored in a fuel tank for a long time requires a stabilizer. You may have noticed a bottle of whisky in your grandparent’s liquor cabinet over years and years. They whisky never broke down; it never required a stabilizer; you can drink from the same bottle of whisky for 20 years and the taste and strength will remain the same.
An ethanol-gasoline blend may separate but the moment the engine is started the ethanol and gasoline readily mix. In addition, the “short period of time” is not a short period of time. You make it sound as if it will occur over a lunch break.
Painting the image that the separation of ethanol and gasoline is similar to the separation of water and gasoline is false. Water has no ability to combust, so if you have phase separation in your tank of water and gasoline then you will have trouble. On the other hand, if the ethanol and gasoline separates you'll never know it because ethanol combusts, and once combustion takes place the gasoline and ethanol mix together.
You post that ethanol causes lost power, performance and decreased fuel economy. This is all nonsense. Ethanol delivers more power because you get more compression. More compression leads to better performance - this is why high end performance cars and many race cars use ethanol fuels. And, the reason that a gasoline engine running on ethanol fuel will get less MPG is because the engine is optimized to run on gasoline. The same engine optimized to run on an ethanol fuel will get better MPG. In any event, if you lose 10% in miles by using an ethanol-gasoline blend, but save 20% in fuel cost, then you have a net gain, not net loss.
And finally, you raise the absurd issue that the ‘Kraken E15 monster’ will force its way into your fuel tank. Just because E15 may become available in Colorado, it doesn't mean that it’s everywhere or that it’s the only fuel choice. Also the pump and hose is clearly labeled. I realize that on occasion someone excessively stupid or drunk will pump diesel fuel into a gasoline tank, and vice-versa, but this is another reason while you should not drive when drunk or excessively stupid.
Incidentally, I own and ride a motorcycle, and have done so for the past 20 years. I have never, ever, experienced any of the problems that you, Stump, ABATE and StarTron claim. I have, however, over the course of driving vehicles of all types for nearly 50 years experienced fuel line freeze (which is virtually non-existent with ethanol-gasoline blends), faulty fuel pumps, broken fuel lines, and leaky seals… all of which happened to my vehicles using leaded gasoline or gasoline with MTBE.
If you guys don't understand these extremely simple facts about internal combustion engines then you should not be writing about them, let alone giving advice to anyone else.
Have a happy week and ride safely.
Read the original story here : The Auto Channel Fires Back Against False E15 Claims
April 6, 2016
An important milestone for higher ethanol fuel blends was reached recently. Major gasoline retailers working with Growth Energy have reported that over the past 12 months, using the U.S. average gas mileage of 20 miles-per-gallon, consumers have surpassed 150 million miles using E15 without any negative effects.
NASCAR has trusted E15 for over five years and 8 million miles of racing because it burns cleaner, cooler and increases octane, which improves engine performance. We’re now seeing consumers choosing it for the same reasons. Retailers including Sheetz, Kum & Go, MAPCO, Minnoco, Murphy USA and Protec have responded to consumer demand for lower cost and higher performing fuel by adding E15 at their pumps and, their choice is paying off.
“I have been using E15 for the last three years at Minnoco and have noticed no mileage loss, better engine performance and great savings at the pump,” said Mark Foudray, a loyal E15 consumer from Shakopee, Minnesota.
Steve Anderson, an AAA approved and ASE certified service consultant and owner/operator of Marshall Cretin Minnoco from St. Paul, Minnesota, also lauded E15’s engine boosting qualities, saying, “We have a loyal following for the E15 product. Approaching 1 million gallons pumped we have nothing but positive results.” He added, “E15 has higher octane and burns cleaner—the interior of the engines are cleaner and the tailpipe makes more air, and less pollution. E15 has been widely tested and is safe for all vehicles model year 2001 and newer. We see over 50 percent of our customers purchasing E15 on a daily basis. The statistics don't lie. It is a great product and we are pleased to offer it as a choice to our fueling customers.”
Higher ethanol blends are increasingly popular choices for consumers who demand a 21st century fuel for 21st century cars, and E15 checks that box. In addition, E15 and higher ethanol blends are better for our environment and the air we breathe, as they emit less emissions than other harmful alternatives and cost consumers less at the pump.
“I have been selling E15 to our customers since the fall of 2013. Since I introduced it, there has not been one complaint due to mileage loss or engine performance. I hear only positive comments with drivability and the lower cost at the pump. Today's cars are designed to utilize the higher octane to improve performance through different computer management systems. I see higher-level blends of ethanol, like E15, being the next fuel of future,” said Joel Hennen, a third generation owner/operator of Hennen’s Auto Service from Shakopee, Minnesota.
“This milestone is a clear indication that American consumers are embracing biofuels like ethanol, and E15 particularly, because they recognize its many benefits—from increased engine performance and reduced oil imports, to less toxic emissions,” said Tom Buis, co-chair of Growth Energy, “Americans want more options at the pump and we hope that this will motivate more retailers to offer E15 at their locations, because consumers are ready for the fuel that’s made for today’s cars.
Read the original story: Growth Energy: More Than 150 Million Miles Driven on E15
More...
Today, the American Petroleum Institute unveiled anti-biofuel results from a new Harris Poll.
Renewable Fuels Association President and CEO Bob Dinneen had the following response:
“It’s no surprise that API, an organization which has made its top priority to get rid of the RFS, is trotting out a phony faux poll to support its antediluvian narrative about biofuels. This push poll, which uses opinionated statements to elicit a negative response to biofuels, is not reflective of reality. For example, the renewable fuel standard (RFS) has not raised food prices 25 percent, as API claims, but instead food prices have risen by an average of just 2.7 percent per year since 2005, the year RFS was adopted. In fact, only 17 cents of every dollar spent on food pays for the raw farm ingredients in the food item. The other 83 cents pay for processing, transportation, labor, packaging, advertising and other costs.
“If you want to know what the American public really thinks, with direct questions and no spin, look no further than a Morning Consult poll conducted April 1–3, on behalf of RFA, in which nearly six in 10 registered voters (57 percent) support the RFS. Conversely, only 19 percent oppose the RFS. Additionally, 64 percent of those polled have a favorable opinion of biofuels and two-thirds (66 percent) have a favorable opinion of corn-based ethanol. This data is consistent with the findings from the approximately 18,000 registered voters we have polled over the past year.
“With these growing levels of support for biofuels, it’s no wonder that API President Jack Gerard told Politico’s Morning Energy last month that the organization was pivoting its strategy toward reforming, rather than repealing, the RFS. API can’t continue to support repeal because Americans want more fuel choice, not less.”
The Morning Consult poll included results from 2,004 registered voters, with a margin of error of +/-2 percent. To view a copy of the poll results, click here.
Read the original story: Push Poll Push Back
April 4, 2016
By Mark Dorenkamp
A renewable fuels industry leader says Minnesota legislators exploring ways to reduce emissions already have a viable option for fueling vehicles.
A proposal introduced last week by Representative Pat Garofalo would provide rebates of up to $2,500 dollars for those who buy or lease a new electric or plug-in hybrid car.
Minnesota Biofuels Association executive director Tim Rudnicki tells Brownfield if lawmakers are serious about reducing emissions from the transportation sector, why not focus instead on internal combustion engines driven by the majority of travelers.
“What’s a possible option right here, right now? I don’t want to say things are always simple and easy, but in this case the beginning step is simple and easy. It’s called E15. That’s 15 percent ethanol blended with 85 percent petroleum gasoline.”
Rudnicki says any incentive to reduce emissions is welcome, but questions offering financial assistance for electric vehicles when there’s currently not enough supply to meet demand.
“It would seem to us that if orders are already placed and folks are standing in line, those individuals probably don’t need any type of incentive. So the market will work in that case, and it apparently is.”
He suggests that if further investments are made to bring renewable fuels to more Minnesotans, it would make a dramatic difference.
“If all the regular gasoline in Minnesota were E15–five percent more ethanol than is currently in the fuel today–there’s the potential to knock another 368,000 tons of CO2 out of the transportation sector.”
Rudnicki says that’s the equivalent of removing 77,000 vehicles from Minnesota highways, and lawmakers should consider building on the success ethanol is already having if the goal truly is to tackle greenhouse gas issues.
Read the original story and listen to the full interview: Fuel Option That Reduces Emissions Already Exists
April 5, 2016
Today, six biofuel trade associations sent a letter to House and Senate leaders asking Congress for a multiyear extension of advanced biofuel tax credits. The Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization (BIO), Growth Energy, National Biodiesel Board and Renewable Fuels Association sent the request in a letter to Senate and House leaders, Senate Committee on Finance leaders, and House Ways and Means Committee leaders.
Congress granted a two-year extension to the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit, and the Alternative Fuel Vehicle Refueling Property through the Protecting Americans From Tax Hikes Act of 2015, which became law on Dec. 18, 2015. While other energy production tax credits were extended through 2019, these provisions expire at the end of 2016.
The letter sent today states, “This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future. As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, as Congress works on developing energy tax extenders legislation, we urge you to ensure that advanced biofuels are part of the package. Extending some 2016 expiring energy tax provisions and not others creates a piecemeal approach and investment uncertainty across the energy sector and distorts the playing field for biofuel producers.”
Tom Buis, Co-chair of Growth Energy, stated, “These incentives are important in providing certainty for investment into second-generation biofuels.”
Brooke Coleman, Executive Director of the Advanced Biofuels Business Council, added, “There is no good rationale for letting temporary tax breaks for advanced biofuels expire against the backdrop of ongoing, permanent and substantial subsidies to fossil fuels. Congress must extend advanced biofuel tax incentives as long as our competitors in the sector – oil and gas – continue to receive special allowances from the federal government. To do otherwise would be to further distort private investment toward oil and gas.”
Renewable Fuels Association President and CEO Bob Dinneen said, “Short-term tax incentives are akin to new drivers in a stick shift vehicle. The cars haltingly lurch forward for a time, but suddenly stall. The advanced biofuel industry needs certainty if it is to remain commercially viable, as it continues to bring new facilities and technologies online. Longer term incentives would go a long way to making sure the industry continues its growth, and don’t leave consumers stalled along the way.”
Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, added, “For several years now, policy uncertainty at the federal level has undercut investment in cellulosic and advanced biofuels even while pioneering companies proved the technology and started up the first commercial-scale production facilities. It will take several more years for companies to plan, finance and build the next wave of advanced biofuel facilities. Stable policy in the form of a multiyear extension of these advanced biofuel tax credits is necessary to help companies secure capital for these projects.”
Anne Steckel, Vice President of Federal Affairs at the National Biodiesel Board, said, “Biodiesel producers across the country are ready to expand production and hire new workers, but they can’t do it when they don’t know what their tax liability will be in nine months. We need to end this cycle of on-again, off-again incentives and replace it with stable, long-term policy for clean fuels that encourages economic growth and innovation.”
A copy of the letter is available at here.
Read the original release: Biofuel Trade Associations Ask Congressional Leaders to Extend Advanced Biofuel Incentives
Global Renewable Fuels Alliance
March 29, 2016
Today, Bliss Baker, the President of the Global Renewable Fuels Alliance (GRFA), sent letters to the national leaders of 47 countries that committed to combating climate change as contributors to the historic agreement at the recent Conference of the Parties to the UN Framework Convention on Climate Change (COP21).
“These countries deserve credit for their pledged contributions to the ambitious international efforts to reduce green house gas (GHG) emissions as part of the COP21 agreement,” Baker said.
Given the scale of the challenge now being confronted, estimated to represent global CO2 emission reductions of 80% by 2050, countries will need to pursue all viable options to transition away from fossil fuel consumption in all sectors.
It is estimated that the transportation sector produces 25-30% of the world’s GHG emissions, making it a priority for national governments as they revise their Intended Nationally Determined Contribution (INDC) plans in the lead up to the 2020 implementation date of the COP21 agreement.
“National governments have a real opportunity to lead by example in developing enhanced biofuel-friendly policies that encourage the development of new technologies and support the production of renewable fuels with the smallest possible footprint,” Baker said. “The GRFA encourages national governments to highlight the significant environmental and economic benefits that ethanol-supportive policies are making, and will continue to make, in order to encourage other countries to pursue domestic opportunities presented by biofuels,” he added.
In its letter, the GRFA offered the expertise of its members to work with government leaders in the development of forward-thinking policies that maximize the advantages of biofuel technologies that are demonstrated to be effective, affordable and immediately available.
Governments Sent Letters
• Australia
• Austria
• Belgium
• Bulgaria
• Canada
• Chile
• Colombia
• Costa Rica
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Ecuador
• Estonia
• Ethiopia
• Finland
• France
• Germany
• Greece
• Hungary
• Indonesia
• Ireland
• Italy
• Jamaica
• Lithuania
• Luxembourg
• Malta
• Mauritius
• Mexico
• Netherlands
• New Zealand
• Norway
• Paraguay
• Peru
• Poland
• Portugal
• Republic of Slovenia
• Romania
• Slovak Republic
• South Africa
• Spain
• Sweden
• Thailand
• Ukraine
• United Kingdom
• United States
• Vietnam
The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 90% of global biofuels productions. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible footprint.
Read the original release: GRFA Offers Support for Policies to Reduce Transport Emissions
March 27, 2016
By Amy Roh
Improving efficiency in the ethanol industry has been crucial to its survival during economic downturns.
Todd Sneller, administrator of the Nebraska Ethanol Board in Lincoln, pointed to a recent study by the U.S. Department of Agriculture that highlighted the improvements in efficiency.
When the ethanol industry started, the energy put into processing at a plant was barely less than the energy created. For every unit of fossil energy put into a plant, 1.2 to 1.5 units of energy was produced.
“Now the latest USDA study says that for every unit of fossil energy going into a plant, there are four units of energy that come out of that,” Sneller said. “That’s a terrific increase over time.”
He pointed to companies using different seed varieties that improve oil extraction or starch conversion and other improvements to develop the ethanol sector over time. He said the companies that invested the large amounts of money they made at the beginning were able to lower production costs to help sustain themselves through economic downturns in the industry.
“I’ve been interested in seeing those trends because they speak to a maturing of the sector as time has gone on,” he said. “In times of marginal profitability, like we’re in now, the focus really has evolved to recognize if you’re sloppy during those periods, you’re probably going to have a tough go of it.”
With stricter carbon emission regulations being enacted around the globe, Sneller said, ethanol has become more popular in the world market.
“A lot of this is going to places in the world where low carbon fuel standards have been embraced to a bigger extent than they have in the U.S., so those really become the emerging markets in the ethanol sector,” he said.
Besides a lower cost, he said, ethanol needs to leave its mark with its other added values, including lower carbon intensity and lower toxicity. Given its higher octane and cleaner burning components, ethanol has a competitive advantage over gasoline when one is looking to comply with carbon emission and greenhouse gas regulations.
But Sneller said he is concerned about the Environmental Protection Agency’s undermining of the Renewable Fuel Standard requirements set out by Congress in the Energy Independence and Security Act of 2007.
The bill set out to increase the volume of renewable fuel product to be blended into transportation fuel from 9 billion gallons in 2008 to 36 billion gallons by 2022. At this point, however, the EPA has lowered the associated incremental increases several years in a row.
Instead of the robust growth expected, he said, the ethanol sector has seen policy languish in oil industry lawsuits. Investors are ready to support new technology being developed in the emerging market, but it’s being hampered by the EPA’s actions.
“Because the EPA has insisted on undermining the standards that Congress has set, it’s caused a lot of hesitation so you see delays in rolling out new technology,” he said. “That sort of uncertainty really puts the brakes on investment.”
While oil lobbyists try to cast aspersions on the ethanol industry, Sneller said, people need to examine the real price of oil, including money spent protecting shipping lanes, cleaning up oil spills and tending to public health and the environment.
And it doesn’t just affect the ethanol sector.
Sneller said automakers need a higher-octane fuel to meet the carbon emission standards imposed on them. Automakers have developed small engines that operate at a lower cost but require a higher octane fuel. But before they can produce vehicles that perform best at E25 or E30, they need to be assured those biofuels will be available.
He said promoting a variety of ethanol blends would also give consumers options.
“What we’re trying to do is make sure that when you pull up to a gas pump, you have a choice other than 100 percent hydro-carbon product,” he said. “You have a choice of ethanol blends that may range up to 85 percent. That’s been the real push — to give consumers a choice.”
Read the original story: In Lean Market, Efficiency Improvements Key for Ethanol
March 23, 2016
By Asha Glover
Nineteen senators, including Sens. Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.), urged the Environmental Protection Agency to set higher blending targets under the Renewable Fuel Standard in 2017, in aWednesday letter to EPA Administrator Gina McCarthy.
The RFS requires that renewable fuels, such as ethanol, be mixed into transportation fuels in an effort to reduce emissions. The EPA set the blending targets for the RFS for 2014, 2015, and 2016 last November, but set low targets because of worries that any higher percentage could cause issues in vehicles.
Last month, EPA Acting Assistant Administrator Janet McCabe told the Senate Environment and Public Works Committee the EPA intended to issue the 2017 RFS on time, after passing the 2014 and 2015 RFS standards retroactively last year.
However, the lawmakers wrote that Congress rejected a lack of distribution infrastructure as a reason to grant a waiver when the standard was adopted in 2005.
“The EPA should reverse course and release a rule this year that follows congressional intent,” the lawmakers wrote.”The forthcoming proposal to set blending targets for 2017 is the EPA’s chance to fulfill the commitment that you and Assistant Administrator McCabe made to get the program back on track.”
“We need a strong RFS, and we need more biofuels. We expect that you get the program ‘back on track’, and we look forward to seeing a proposed rule released on time that removes the distribution waiver and re-establishes the United States as a leader in the biofuel sector.”
Read the original story here : Senators Want Higher Blending Targets For RFS In 2017
March 22, 2016
By Erin Voegele
A recent study has shown that while the renewable fuels industry continues to be a strong driver of Iowa’s economy, its impact took a small step backwards in 2015 due to reductions in renewable fuel standard (RFS).
The study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association, four that Iowa’s renewable fuels industry, including ethanol and biodiesel, supported nearly 43,000 jobs throughout the state economy last year while generating nearly $2.3 billion in household income. The industry also accounted for approximately $4.6 billion, or 3.5 percent of Iowa GDP. When compared to 2014, GDP was down 5.6 percent, with jobs down 8.8 percent and income down 11.6 percent.
The ethanol industry alone supported approximately 39,592 jobs, nearly $2.07 billion in household earnings, and nearly $4.3 billion in GDP, along with $7.05 billion in purchases. The biodiesel industry supported an estimated 3,059 jobs, $198.1 million in household earnings, $344.3 million in GDP, and $689 million in purchases.
According to the report, the Iowa ethanol industry currently takes in 1.4 billion bushels of corn, which equates to 57 percent of the state’s corn crop. At 2015 Iowa farm gate prices, this amounts to $5.2 billion of revenue for Iowa corn farmers. The report indicates that expenditures for corn feedstock by Iowa ethanol producers fell 7.6 percent when compared to 2014 levels due to lower prices.
The report also notes Iowa’s ethanol industry posted a 3.8 percent increase in output last year, with the state’s 43 operating ethanol plants producing at an annual rate of slightly more than 4 billion gallons. The state accounted for 27 percent of total U.S. output.
“The U.S. ethanol industry experienced another record-breaking year in 2015, despite a challenging economic and regulatory environment,” Urbanchuk said.
“Iowa is the leading producer of ethanol in the United States,” said Iowa Gov. Terry Branstad. “We have been disappointed by the EPA’s unwillingness to restore a robust renewable fuel standard. This study shows how important renewable fuels are for the future of our Iowa economy.”
“Renewable fuels continue to be a bedrock of our Iowa economy, as this study shows,” Iowa Lt. Gov. Kim Reynolds added. “However, the drop in farmland values, farm income and commodity prices is directly being impacted by a reduction in the renewable fuel standard. Gov. Branstad and I have called on the EPA to take action repeatedly to provide consumers choices at the pump, create jobs and increase income for Iowa families and reduce our dependency on foreign oil.”
“While Iowa’s ethanol and biodiesel industries continue to power the state’s economy, it’s disappointing that those impacts took a small step backwards last year,” stated Iowa Renewable Fuels Association Executive Director Monte Shaw. “What may be as equally frustrating is the missed opportunity to really grow Iowa’s economy. When the EPA reduced the statutory RFS levels, it reduced our ability to grow ethanol and biodiesel production, to grow forward-looking investments into new technologies, to grow farm income and to grow Iowa jobs.”
Read the original story here : Report Highlight's Impact Of Iowa's Ethanol Industry
March 17, 2016
By Bob Dinneen
There’s a rather pernicious meme making the rounds on Capitol Hill lately—that the renewable fuel standard (RFS) is no longer relevant because America is now producing more oil through fracking. Oil company lobbyists are scouring congressional offices in a desperate effort to create the misplaced narrative that ethanol did nothing to make us more energy independent, that tight oil supplies from the Bakken are fueling a resurgence of the U.S. energy sector, and policies promoting renewable fuels are costly intrusions into the energy free market that hurt consumers and the environment. Seriously. I can’t make this stuff up.
Indeed, in his state of American energy speech last month, American Petroleum Institute president Jack Gerard doubled down on the oil industry’s attack on ethanol and the RFS, calling it a “relic of our nation’s energy past.” He’s whistling past the graveyard, of course, ignoring the fact that an oil glut they helped create is wreaking as much havoc on the stock market and the economy today as the oil shortage that caused prices to skyrocket to $140 per barrel in 2008. He’s ignoring the fact that 2015 was the hottest year on record, caused in large part by greenhouse gas (GHG) emissions from fossil fuels, which are exacerbated by fracking and tar sands. And he dismisses the fact we still import more than 45 percent of the oil processed by U.S. refineries, much of it from hostile nations that pose an existential national security threat to our homeland.
But here’s the point—the RFS was enacted to address several important policy priorities, not just energy security. It was passed at a time when corn farmers were selling their commodity for less than the cost of production and ag subsidies were necessary to avoid economic calamity. The RFS provided a value-added market that empowered farmers and allowed Congress to dramatically reduce farm program support. The RFS was enacted at a time when Congress was looking for effective programs to address climate change. The RFS has provided significant GHG benefits, reducing GHG emissions by more than 354 million metric tons over the course of the program. The RFS was passed in recognition of the fact that consumers benefit by competition. One analysis concluded the use of ethanol through the RFS reduced gasoline prices by about $1 per gallon. Even in today’s market, with the unusually low oil price driving gasoline costs lower than ethanol for the first time in years, ethanol remains a bargain for refiners and consumers because it is still the cleanest and lowest-cost octane source available.
API’s revisionist history notwithstanding, the RFS has also demonstrated its effectiveness in enhancing U.S. energy security. Net petroleum import dependence fell to just 25 percent in 2015, but would have been 32 percent without the addition of 14.7 billion gallons of domestically produced ethanol to the fuel supply. The surge in ethanol production has reduced gasoline imports from nearly 10 billion gallons in 2005 to almost zero today. Indeed, the ethanol produced in 2015 displaced an amount of gasoline refined from 527 million barrels of crude oil. That’s roughly equivalent to the volume of oil imported annually from Saudi Arabia and Kuwait combined. Not a bad relic.
No, it is not the RFS that is a “relic of our nation’s energy past.” It is the very notion that prosperity can only be driven by petroleum without regard for the environmental, economic or national security implications of that dependency that is the “relic” world leaders need to recognize and relegate to the trash heap of history.
Read the original story here : I'll Show You A Relic