Reuters

June 5, 2018

The Trump administration has indefinitely delayed a proposed overhaul of U.S. biofuels policy aimed at reducing costs for the oil industry, under pressure from corn state lawmakers who worry the move would undermine demand for ethanol, according to two sources familiar with the matter.

The White House had been poised to announce the reforms to the U.S. Renewable Fuel Program early this week after hosting months of difficult negotiations between representatives of the key constituencies.

“The announcement won’t be happening,” one of the sources said. The second source said the deal had apparently collapsed. Both sources asked not to be identified discussing the matter.

The RFS requires oil refiners to mix increasing volumes of biofuels like ethanol into the nation’s fuel each year, and prove compliance by earning or acquiring blending credits that must be handed in to the Environmental Protection Agency.

The law has helped Midwest corn farmers by creating a 15-billion-gallon-a-year market for ethanol, but refining companies have complained it incurs steep costs for them.

The White House deal would have eased pressure on the refining industry by allowing biofuels exports to count toward the annual volumes quotas. It would also have expanded sales of high-ethanol gasoline in a concession to biofuels producers.

Republican Senators Chuck Grassley and Joni Ernst of Iowa both praised President Donald Trump on Twitter on Tuesday evening.

“@realDonaldTrump has said he loooovves the farmers! #Iowa is feeling that love today, as the President just assured me he ‘won’t sign a deal that’s bad for farmers!’ Thank you Mr. President,” wrote Ernst.

“Pres Trump helped farmers by rejecting bad ethanol deal. I appreciate. GREAT NEWS,” wrote Grassley.

Bob Dinneen, head of the Renewable Fuels Association, said: “We are happy the President continues to recognize the importance of our industry to America’s farmers and rural economies across the nation.”

Read the original article: Trump Administration Biofuels Deal Delayed Indefinitely: Sources

DuPont Industrial Biosciences

June 5, 2018

Press Release

Building off the recent launch of its fuel ethanol platform DuPont™ XCELIS™, DuPont Industrial Biosciences unveiled the first three products from the innovation hub – designed to increase yields, speed fermentation and reduce energy and chemical consumption:

DuPont™ SYNERXIA® THRIVE GX
Next Generation in Yeast for the Fuel Alcohol Industy

DuPont™ DISTILLASE® DXT
Advanced Glucoamylase Blend

DuPont™ OPTIMASH® AX
Xylanase for Enhanced Liquefaction

The new XCELIS™ platform also will feature an online partner community for the industry, GRAIN CHANGERS. This online community and innovative product offerings represent a new age for DuPont’s XCELIS™ biorefinery team. By improving performance, efficiency and fuel ethanol yields – and working hand-in-hand with customers – XCELIS™ helps ethanol producers reach their goals with new products, tools and technologies.

“These three products are – quite simply – game-changers for the fuel ethanol market,” said Judy Underwood, global marketing leader, Grain Processing, DuPont Industrial Biosciences. “Our team has done it once again – listened to customer needs, engineered cutting-edge enzyme and yeast technologies and worked hand-in-hand with ethanol producers to bring products to market that provide the best possible yields and new options for efficiency.”

Following upon last year’s successful launch of SYNERXIA® THRIVE ADY, SYNERXIA® THRIVE GX is the latest advancement in DuPont’s line of SYNERXIA® Fermentations Systems. It offers a new option in high yield yeasts to help ethanol producers drive to the best performance. SYNERXIA® THRIVE GX is the next generation of DuPont yeast to use the carbon-efficient PKL pathway, resulting in an increased yield of up to 3 percent more than conventional yeast; robust performance during process excursions; and expression of glucoamylase for efficient sugar conversion.

DISTILLASE® DXT is an advanced glucoamylase blend, the newest member of the DISTILLASE® line. The new product is designed to help customers extract even more value from liquefied grains through a combination of advanced glucoamylases, trehalase and cold cook alpha amylase. With DuPont’s novel highly active debranching GA technology, it is optimized for more complete starch to sugar conversion that increases yield up to 1 percent above other trehalase-based blends and is designed to pair well with SYNERXIA® THRIVE GX.

OPTIMASH® AX – a xylanase enzyme that enhances liquefaction – is an addition to the popular OPTIMASH® range. Now designed to help customers extract even more value out of nonstarch carbohydrates, it relaxes fibers to release inaccessible starch; increases ethanol yields up to 1 percent; and – notably – is complementary to alpha amylase performance.

“Launching not one but THREE pioneering products demonstrates our ongoing commitment to this industry,” said Underwood. “But XCELIS™ is more than these products. We are providing tools and technologies to help our customers achieve greater success than ever before – whether it’s a process audit, or a benchmarking study or new products, DuPont’s XCELIS™ Team is always looking for ways to help our customers drive bottom line success.”

About DuPont Industrial Biosciences

DuPont Industrial Biosciences, a DowDuPont Specialty Products Division business, works with customers across a wide range of industries to make products and industrial processes more efficient and sustainable. Through a unique combination of agriculture, biotechnology, chemistry and material science capabilities, we advance market-driven, bio-based solutions to meet the needs of a growing population, while protecting our environment for future generations. For updates about how DuPont Industrial Biosciences is helping customers deliver cost-effective products with superior performance and sustainability, follow @DuPontBiobased on Twitter or visit our website at http://biosciences.dupont.com.

Read the original press release: DuPont Industrial Biosciences Launches Three New Products for Fuel Ethanol Market

Renewable Fuels Association

June 1, 2018

By Emily Druckman

Starting today, retail gas stations across much of the nation will be forced to cease sales of E15, a fuel blend that is cleaner and cheaper than regular E10 gasoline. The summertime ban on E15, which results from a decades-old regulatory barrier that President Trump has called “unnecessary and ridiculous,” comes at a time when gas prices are reaching four-year highs and the national average price for regular is on the doorstep of $3 per gallon.

Not surprisingly, a new poll shows that American consumers are frustrated by the lack of choice that stems from the summertime prohibition on E15. In a poll of registered voters conducted by Morning Consult last week, four out of five respondents said they believe the federal government should allow E15 to be sold year-round. These drivers clearly understand that E15 offers a lower-cost, higher-octane fuel choice that is better for the environment.

Moreover, President Trump has expressed support time and again for allowing year-round E15 sales and providing consumers with greater choice at the pump. In mid-April, he committed that his administration would approve year-round access of E15. Unfortunately, EPA Administrator Scott Pruitt has yet to act on the President’s commitment, meaning another summer driving season is starting off with less choice and higher prices at the pump.

“EPA Administrator Pruitt leaves no stone unturned when it comes to addressing the grievances of the oil industry, most recently by printing $34 million worth of artificial RIN credits and handing them over to refining company HollyFrontier like a welfare check,” said RFA President and CEO Bob Dinneen. “Farmers are tired of subsidizing some of the wealthiest companies in the country. It’s time for Scott Pruitt’s wholesale destruction of the RFS to end. It’s time for EPA to follow the law and the direction of the president. It’s time for EPA to create biofuel demand by eliminating this antiquated regulatory barrier and empower consumers to make the fuel choices that are best for their cars and wallets,” he added.

In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not allow E15 to benefit from the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver that is available to E10 blends. As a result of this disparity, retailers in conventional gasoline areas would have to secure special “sub-RVP” gasoline blendstock in order to continue selling E15 during the EPA summer ozone control season. Such gasoline blendstock is generally unavailable in conventional gasoline areas and would be uneconomical to ship.

Read the original article: New Poll: Consumers Agree that E15 Barrier is ‘Unnecessary’ and ‘Ridiculous’

Reuters

May 29, 2018

By Jarrett Renshaw, Chris Prentice

A coalition of ethanol and farm groups sued the U.S. Environmental Protection Agency on Tuesday, challenging its decision to free three refineries, including one owned by billionaire investor Carl Icahn, from annual biofuels requirements.

The groups, including the Renewable Fuels Association and the National Corn Growers Association, filed the challenge in a U.S. Court of Appeals for the 10th Circuit in Denver, according to a statement from the coalition. The lawsuit targets three waivers doled out to refineries owned by CVR Energy Inc, in which Icahn hold a majority stake, and HollyFrontier Corp.

Refiners are required by the U.S. Renewable Fuel Standard to blend increasing volumes of biofuels like ethanol each year, but the EPA can offer exemptions for facilities under 75,000 barrels per day, if they experience “disproportionate economic hardship.”

The EPA did not respond immediately to a request for comment on the lawsuit.

The EPA has come under pressure for being stingy with the waivers in the past, and a successful lawsuit last year by Sinclair Oil Corporation led a federal court to order EPA to expand its definition of “economic hardship” - opening the door for more facilities to qualify. U.S. refiner Andeavor and CVR are among the companies that sources have said have received waivers for their smallest units. Chevron Corp, Exxon Mobil Corp and Marathon Oil Corp have requested them, sources have told Reuters.

The number of waivers has soared, amplifying controversy over a program that has been a battleground for entrenched farm and oil interests in Washington for years. Oil refiners say the requirements cause undue financial strain, while corn and biofuels supporters say the waivers reduce demand for their products.

In addition to challenging the waivers themselves, the group criticized the EPA for its lack of transparency. The EPA has refused to share details of which companies have asked for and received the waivers, citing confidential business information.

“EPA is trying to undermine the RFS program under the cover of night,” Bob Dinneen, CEO and president of Renewable Fuels Association, said in the statement.

The American Coalition for Ethanol and National Farmers Union joined in filing the lawsuit.

Read the original article: Ethanol, Farm Groups Sue EPA Over Refineries' Biofuels Exemptions

We will be teaming up with Farm Camp Minnesota on Aug 13 to offer campers and their chaperones a tour of the Guardian Energy ethanol plant in Janesville.

Renewable Fuels Association

May 21, 2018

By Emily Druckman

Industry and government officials from 17 countries in Asia and Oceania are meeting with members of the U.S. ethanol industry and U.S. officials in Minneapolis this week at the Ethanol Summit of the Asia Pacific (Summit), focused on current and future prospects for expanded ethanol use throughout the region.

The event, sponsored by the U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA), is hosting high-level officials from agriculture, environmental and energy ministries throughout the region who will discuss environmental, human health and economic benefits of ethanol use and foster collaboration and trade across the region. Participating countries include from Australia, Bangladesh, China, India, Indonesia, Japan, Korea, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Vietnam and the United States.

Building on the success and momentum of last fall’s Ethanol Summit of the Americas event, this Summit endeavors to capitalize on potential markets in a region with some of the fastest growing increases in fuel demand, increases in GHG emissions, and heightened air quality issues exacerbated by these countries’ rates of growth. The Summit is highlighting the use of ethanol in transportation fuels to help meet a number of challenges, including improving air quality, improving the current fuel supply and reducing greenhouse gas emissions.

Globally, the U.S. Grains Council, along with industry partners Growth Energy and the Renewable Fuels Association, works to expand the use of ethanol to help countries develop policies with a role for trade, while highlighting ethanol’s benefits to society.

“We are happy to welcome officials from around the world to this meeting,” said Tom Sleight, USGC president and chief executive officer. “The Summit furthers policy conversations so governments across the region are in sync about the benefits and opportunities of using ethanol. The benefits of ethanol use provide common ground for countries to collaborate as they seek to meet their societal goals.”

The Summit nurtures a collaborative environment that encourages senior level officials and industry leaders from a host of countries to find ways to expand the global use of ethanol while developing sound trade policy.

“2017 was a record year for U.S. ethanol exports, and our industry is energized by the prospect of new opportunities for American biofuels around the globe that can be opened through better education and understanding of ethanol’s myriad benefits,” said Growth Energy CEO Emily Skor. “This summit is a distinct opportunity to discuss how open Asian markets will continue to benefit the biofuels industry, the American agricultural sector, and Asian consumers.”

The two-day conference also includes views and analysis on ethanol-related policies, infrastructure and use across Asia Pacific countries. This work includes the Asia Pacific Economic Cooperation (APEC) ethanol roadmap, which includes best practices for developing an ethanol industry, the U.S. Department of Agriculture’s perspective on ethanol policy, trade and collaboration, ethanol case studies from Vietnam and the Philippines, ethanol research in Japan and the development of ethanol policy and use in China.

“The timing of this summit is prescient, as an unprecedented and troubling level of protectionism across global biofuel markets threatens to undermine the free flow of ethanol, harming both consumers and producers. Hopefully, forums like these will help reaffirm our collective commitment to the free and fair trade of renewable biofuels,” said Renewable Fuels Association President and CEO Bob Dinneen.

The U.S. ethanol industry’s efforts, including conferences like the Summit, are working to affirm the United States as the leader in ethanol industry development and as a key partner.

The U.S. set an all-time high for ethanol exports in the 2016-2017 marketing year at 1.37 billion gallons (488 million bushels in corn equivalent), exceeding the previous record set in 2011-2012, and is up 17 percent, year over year, through the first half of the current marketing year.

The Summit promises to engage international partners to foster further collaboration within the global ethanol industry in an effort to address human health, economic and ecological concerns, and continue to expand some of the fastest-growing markets in the industry.

Because building collaboration creates additional markets, the U.S. Grains Council is sponsoring several pre- and post-Summit tours so participants are able to see the full production and value chain of ethanol in the U.S. These tours will highlight ethanol in Kansas, Iowa, Minnesota, Nebraska and Wisconsin.

Read the original article: Ethanol Summit of the Asia Pacific Highlights Global Ethanol Use Opportunities

Feedstuffs

May 18, 2018

Seven months into the 2017-18 marketing year, the U.S. has exported nearly 1 billion gal. of ethanol, up 15% year over year and an indication of how ethanol exports support U.S. grain demand, the U.S. Grains Council (USGC) reported.

March ethanol exports exceeded 215 million gal., the second-highest monthly sales on record after the record of nearly 220 million gal. in February 2018. Both months far exceed the previous monthly export record of 178 million gal. in December 2011, USGC noted.

“The incredible cost-competitiveness of U.S. ethanol has enabled sales to break through tariffs and set new records despite numerous trade policy issues,” USGC chief economist Mike Dwyer said. “U.S. ethanol remains on track for another banner year of exports.”

Brazil remains the top importer of U.S. ethanol, with 96 million gal. in sales in March 2018, bringing its total for the marketing year to almost 349 million gal. USGC said these sales occurred despite a slow start following the implementation of a 20% tariff on imports outside a quota equaling approximately 40 million gal. quarterly.

“Last year, U.S. ethanol had duty-free access to the Brazilian market, resulting in higher-than-ever exports,” Dwyer said. “This year, U.S. ethanol is subject to a 20% out-of-quota tariff yet is already up 12% year over year, further demonstrating that Brazil does not have enough ethanol to meet demand as well as the economic advantage of U.S. supplies.”

While sales to Brazil are expected to cool slightly due to the beginning of the country's sugarcane harvesting season, Dwyer said the U.S. is on track to potentially set another record for ethanol exports to the Brazilian market this marketing year.

USGC reported that other large year-over-year increases in demand similarly came from markets where U.S. ethanol is subject to high tariff measures.

Sales to China are up 57% year over year to 77.4 million gal. so far this marketing year, making China the fourth-largest export market for U.S. ethanol. However, it is unclear if the U.S. will export any additional ethanol to China this marketing year following the imposition of another 15% tariff on top of the existing 30% tariff on U.S. product.

USGC said even with trade barriers in the European Union, U.S. ethanol exports have increased 749% compared to the same time the previous year, to 47.2 million gal. Almost all of these exports are believed to be re-exported to other markets in the Middle East and Africa, not for consumption within the EU.

“Understanding the uniqueness of each international market is key to continued successful promotion of U.S. ethanol,” USGC said. “The council and its biofuels industry partners identify and analyze potential markets and develop strategies tailored to the culture and conditions of each while working closely with established customers who already gain economic, environmental and human health benefits from ethanol.”

Read the original article: U.S. Ethanol Exports Continue Upward Streak

Ethanol Producer Magazine

May 15, 2018

By Erin Voegele

Gevo Inc. recently released first quarter 2018 financial results, reporting that the company currently sees ethanol as a pathway to profitability. The company’s near-term plans include making improvements its plant in Luverne, Minnesota.

“In the first quarter of 2018 we continued the drive to achieve our commercial objectives and worked to extend our runway,” said Patrick Gruber, CEO of Gevo. “We see a pathway to making Gevo profitable by addressing low carbon fuels. We intend to do it first with ethanol by improving our production facility in Luverne which will also benefit isobutanol production. We can see a path to profitability without building a large isobutanol and hydrocarbons plant. We have not abandoned our long-term goal of building large scale plants, but they take time to build out and generate cash.  We think that we can get to cash positive sooner rather than later, independent of building out a large isobutanol plant. We expect to describe in more detail what this plan looks like in the relatively near further. Our plan to drive down cost across the entire company has been working and the numbers in our financials reflect our efforts.”

“To be clear, we are continuing to gain commercial traction with isobutanol, isooctane, and jet fuel,” Gruber continued. “We expect that in the relatively near future we will be able to finalize one or more of these contracts. We recently have been reviewing the market opportunities for our products, including the costs to produce our ethanol, isobutanol, isooctane, and jet fuel, and potential selling prices for these products. We are pleased with the results and see enormous commercial potential. We are one of the few biofuel producers that have real data and operating experience gained from a commercial production facility. This data and experience are competitive advantages for us as we discuss offtake arrangements with potential customers and strategic partners. Tim Cesarek, Gevo’s recently hired chief commercial officer, has hit the ground running and is having discussions with several potential customers and strategic partners.”

During an investor call, Gruber noted that the Luverne plant site has good corn economics, good transportation, good rail and good logistics. He said improvements the company is considering making to the Luverne plant would benefit not only ethanol production, but the company’s future plans for isobutanol, isooctane, jet fuel and other products.

Gruber also spoke briefly about a proposed rule published by the U.S. EPA in April that would enable 16 percent isobutanol blends to be used in gasoline for on-road use. He said that previously the 16 percent blend could only be used for off-road use. Gruber called the rulemaking a good step forward in the ability to supply isobutanol through retail distribution channels.

Gevo reported first quarter revenues of $8.2 million, up from $5.6 million during the same quarter of last year. Revenues derived at the Luverne facility related to ethanol sales and related products reached $8.2 million, up $2.7 million when compared to the same period of 2017. The increase is primarily attributed to increased ethanol production and distillers grain prices.

First quarter gross loss was $2.3 million, compared to a $3.8 million gross loss during the first quarter of last year. Net loss was $2.5 million, compared to a net loss of $5.9 million during the same quarter of 2017. The non-GAAP adjusted net loss was $5.8 million, compared to $7.9 million during the first quarter of last year.

Read the original article: Gevo to Focus on Ethanol production, Improvements at Luverne

The biofuel industry supported 1.93 million jobs globally in 2017, an increase of 12 percent, a new report said.