Ernst Leads Letter to EPA Calling for Solution to Costly, Burdensome Ethanol Regulations
February 17, 2017
Press Release
WASHINGTON, D.C. – U.S. Senator Joni Ernst (R-IA) today led a letter along with Senators Chuck Grassley (R-IA), Roy Blunt (R-MO), Pat Roberts (R-KS), and John Thune (R-SD) to Environmental Protection Agency Administrator Scott Pruitt asking him to examine a burdensome regulation that makes it more difficult to sell gasoline with ethanol content above ten percent, such as E15 year round.
The senators wrote, in part: “The Clean Air Act (CAA) limits the volatility of gasoline, as measured by Reid Vapor Pressure (RVP), to nine pounds per square inch (psi) from June 1 – September 15. In 1989, the EPA adopted an interim 1-psi RVP ‘waiver’ for gasoline blends containing ten percent ethanol (E10), and this waiver was later codified through amendments to the Clean Air Act in 1990. Despite repeated requests, the EPA has refused to grant this same 1-psi waiver to gasoline blends that contain more than ten percent ethanol, such as E15. As a result, sales of E15 in most of the country are severely restricted between June 1 and September 15 – the peak summer driving season. Retailers are forced to find specially tailored low-RVP gasoline blendstock to make E15 in the summertime, or avoid selling the fuel altogether. Neither of these options are practical or economical for most retailers and their customers.”
The letter also called for a solution to ease this strain on retailers and consumers: “without the waiver being extended, this archaic policy prevents E15 from enjoying the same treatment year round, discouraging retailers from installing infrastructure to distribute these fuel alternatives, and ultimately increasing costs for consumers. We ask that you extend the 1-psi RVP waiver to E15 and higher blends, to eliminate this needless obstacle to consumer choice.”
Click here to view the full letter.
Read the original release: Ernst Leads Letter to EPA Calling for Solution to Costly, Burdensome Ethanol Regulations
Peterson, Davis, Noem, and Loebsack Lead Call for Strong RFS
February 14, 2017
Press Release
Congressional Biofuels Caucus Co-chairs Congressman Collin C. Peterson (D-MN), Congressman Rodney Davis (R-IL), Congresswoman Kristi Noem (R-SD), and Congressman Dave Loebsack (D-IA), led Members of Congress in a bipartisan letter to the Trump Administration about the importance of a strong Renewable Fuel Standard (RFS).
In their letter to President Trump the lawmakers emphasized the economic benefits of the RFS saying, “In 2015 alone, the RFS is directly responsible for creating nearly 86,000 jobs ranging from farms to equipment manufacturers to ethanol production facilities.” The letter encourages the administration to create certainty in the market by continuing its commitment to the RFS.
“As a co-chair of the Congressional Biofuels Caucus, it is important to remind the new Administration of its commitment to the Renewable Fuel Standard and how it creates jobs and strengthens rural economies,” Peterson said. “I am pleased with the bipartisan support for this letter and will continue to fight for a robust Renewable Fuel Standard in the years to come.”
“A strong RFS is extremely important to our nation's economy,” Davis said. “The RFS is crucial to supporting jobs across rural America and in other parts of our country. I look forward to working with the new administration to ensure we maintain a strong RFS.”
“With advances in technology, we are growing more on fewer acres and using that efficiency to diversify the market,” Noem said. “Through the RFS, we can make sure American-grown fuels have a place in our energy supply and give farmers and ranchers the opportunity to contribute to greater energy independence.”
“The RFS is more than just a number. It represents the hard work Iowa’s farmers and rural communities put into creating a fuel source for the future that also decreases our dependence on foreign oil.” Loebsack said. “As the co-chair of the Congressional Biofuels Caucus, I am proud to help lead the fight for a strong RFS and have worked to highlight its importance to Iowa. I look forward to working with my colleagues, the EPA, and new administration to ensure the RFS remains strong for our country, for our economy, and for Iowa.”
Letter’s language:
Dear President Trump:
As members of the Congressional Biofuels Caucus, we write you today to urge your administration to continue to support a strong Renewable Fuel Standard (RFS). This is an important policy that creates jobs in rural America, boosts economic growth, and lowers gas prices nationwide.
As you know, communities in rural America depend on agriculture and manufacturing jobs for employment. The RFS supports 400,000 of these jobs across the nation. In 2015 alone, the RFS is directly responsible for creating nearly 86,000 jobs ranging from farms to equipment manufactures to ethanol production facilities. There is no doubt that rural Americans and their families benefit from the economic expansion and jobs created by the RFS.
In 2015, the RFS added $44 billion in economic activity. This is felt throughout greater America as farmers produce larger harvests to meet fuel demand. In turn, equipment manufacturers produce more efficient farm machinery, and truckers are relied on to move products. Engineers at ethanol and biodiesel facilities across the nation produce the most cost-effective biofuels in the world, lowering gas prices for all Americans and bringing high-paying jobs to rural areas.
In fact, biofuels play a major role in the reduction of gas prices. The biofuels production capabilities of our nation are extraordinarily efficient. Studies show that ethanol can reduce gas prices by as much as $1.00 per gallon. With ethanol blended in 97% of gasoline, it is helping consumers save money virtually every time they fill up. A strong and continued RFS can reduce gas prices even further.
We encourage your administration to engage with the Congressional Biofuels Caucus to generate strategies that ensure the RFS remains strong. Continued commitments to this biofuels policy will create certainty and lead to additional jobs in rural America, enhanced economic growth, and help keep gas prices low. We look forward to working with you in the years that follow.
Read the original release: Peterson, Davis, Noem, and Loebsack Lead Call for Strong RFS
Ace Ethanol to Install D3MAX Cellulosic Ethanol Pilot Plant
February 16, 2017
By BBI International
D3MAX has announced the completion and shipment of its pilot plant employing the patented D3MAX cellulosic ethanol technology. The pilot facility will be installed at ACE Ethanol LLC, in Stanley, Wisconsin, in late February. Installation is expected to be complete by mid-March with startup and testing at the facility taking place over the ensuing two months.
“We are very excited to take this next step in developing the D3MAX technology,” says Mark Yancey, chief technology officer for D3MAX. “ACE (Ethanol LLC) has been an excellent partner in the lead up to the installation and running of the pilot facility.”
“We see this type of bolt-on technology as a clear path forward for cellulosic ethanol,” says Neal Kemmet, president and general manager at ACE Ethanol. “Of course, much will be determined during the next phase of pilot testing. However, if successful, we feel the D3MAX process will be key in allowing current producers to lead the way for the next generation of ethanol production.”
Operation of the skid-mounted unit, constructed by Ohio-based AdvanceBio Systems, will help narrow the operating parameter such as pretreatment time, temperature, pH, etc. Upon successful completion of pilot testing and data collection, D3MAX intends to complete the full detailed commercial design and license the technology across the United States and Canada.
D3MAX is a technology company formed by BBI International to license its patented cellulosic ethanol technology to dry mill ethanol plants in the US and Canada. The technology converts corn fiber and residual starch in distillers grains to cellulosic ethanol. To learn more about D3MAX visit: www.D3MAXLLC.com.
Read the original story: Ace Ethanol to Install D3MAX Cellulosic Ethanol Pilot Plant
Gevo Signs Letter of Intent with HCS Holding for Commercial Supply of Isooctane
February 14, 2017
US advanced biofuels company has announced that it has entered into a Letter of Intent (LOI) with HCS Holding (HCS) to supply isooctane under a five-year offtake agreement.
HCS is a manufacturer of specialty products and solutions in the hydrocarbons sector, operating under the brands Haltermann Carless, ETS Racing Fuels and EOS. HCS is owned by HIG Capital. Haltermann Carless, one of the oldest companies in the world of chemistry, is expected to be the direct customer with Gevo under the proposed offtake agreement.
The LOI contemplates an offtake agreement that will have two phases. In the first phase, HCS will purchase isooctane produced at Gevo's demonstration hydrocarbons plant located in Silsbee, Texas.
This first phase is expected to commence in 2017 and would continue until completion of Gevo's future, large-scale commercial hydrocarbon plant, which is likely to be built at Gevo's existing isobutanol production facility located in Luverne, Minnesota. Gevo expects revenue in the range of $2-3 million per year from the first phase.
In the second phase, HCS will agree to purchase approximately 300,000 to 400,000 gallons of isooctane per year under a five-year offtake agreement.
Gevo would supply this isooctane from its first large-scale commercial hydrocarbons facility, which is likely to be built at Gevo's existing isobutanol production facility located in Luverne, Minnesota. The LOI establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build out Gevo's existing production facility in Luverne, Minnesota.
It is the intent of Gevo and HCS to establish further offtake arrangements for other products such as Gevo's alcohol-to-jet fuel (ATJ) and isobutanol. HCS is expected to market and distribute Gevo's products globally on a non-exclusive basis.
"Haltermann Carless and HCS will serve as a major and substantial offtaker of Gevo's renewable isooctane from Gevo's demonstration plant and a vital offtaker from Gevo's first commercial hydrocarbon plant. Gevo and HCS agree to evaluate options to make the partnership most impactful and provide maximum credibility for Gevo's next generation technology," said Henrik Krüpper, chief sales officer and member of the HCS Group GmbH's Executive Committee.
"We are very pleased to establish this commercial relationship with HCS Holding, which is world renowned in the industry for the high quality of its performance fuels. We expect that they will be an important customer and partner for Gevo," said Patrick Gruber, Gevo's CEO.
"When we produce ATJ, we also produce other products such as isooctane and isooctene. We believe that a binding offtake agreement with HCS Holding is one more piece of the puzzle to validate our case for expanding the Luverne plant," continued Gruber.
Read the original story: Gevo Signs Letter of Intent with HCS Holding for Commercial Supply of Isooctane
Jungbunzlauer and Green Biologics Partner on Bio-Based Plasticizers
February 14, 2017
Press Release
Ashland, Virginia and Abingdon, Oxfordshire U.K. (February 14, 2017) – Green Biologics, Inc., the U.S. subsidiary of Green Biologics Ltd., a U.K. industrial biotechnology and renewable chemicals company, announced today an exclusive collaboration with Jungbunzlauer Ladenburg GmbH, the German operating unit of Jungbunzlauer Suisse AG in Basel, Switzerland. In February 2017, Jungbunzlauer received its first shipment of 100 percent renewable BioPure™ n-butanol from Green Biologics’ production facility in Little Falls, Minnesota. Jungbunzlauer aims to produce bio-based CITROFOL® BI (tributyl citrate) and bio-based CITROFOL® BII (acetyl tributyl citrate) for its customers with commercial shipments beginning next month.
“Jungbunzlauer is an outstanding collaboration partner for Green Biologics,” said Timothy G. Staub, Global Vice President of Business Development for Green Biologics. “As the global leader in natural ingredients built off its core strengths in citric, lactic and gluconic acids, and xanthan gums, Jungbunzlauer has been committed to sustainability for 150 years. We are delighted to be working exclusively with Jungbunzlauer on the global introduction of bio-based citrate derivatives.”
Green Biologics announced the start-up of its first commercial production facility for renewable n-butanol and acetone in December 2016, with its first bulk export shipment to Jungbunzlauer in mid-January.
“Our focus is to selectively move our renewable n-butanol and acetone into high value markets, and Jungbunzlauer is a superb technological and market-facing partner for Green Biologics, particularly in citric-based plasticizers, but in other bio-based esters as well,” added Staub.
“Sustainability has been a key principle of Jungbunzlauer since our founding in 1867. With our mission “From nature to ingredients®,” we believe that renewable products are essential for the future success of our customers in many evolving markets, including our CITROFOL® BI and CITROFOL® BII customers,” said Hans-Peter Froschauer, Product Group Manager of Specialties at Jungbunzlauer Ladenburg GmbH. “The opportunity for bio-based plasticizers in personal care, healthcare, bio-polymers and many other industrial applications is immense and it is global. We look forward to a long and successful collaboration with Green Biologics.”
Green Biologics is a member of the American Chemistry Council (ACC) and is building its new green solvents facility to meet Responsible Care™ standards. The company’s n-butanol and acetone have received 100 percent bio-based, USDA BioPreferred® status.
About Green Biologics: Green Biologics Ltd (GBL) is a renewable specialty chemicals company based in Abingdon, England with a wholly owned U.S. operating company, Green Biologics Inc., based in Ashland, Virginia. GBL’s Clostridium fermentation platform converts a wide range of sustainable feedstocks into high performance green chemicals such as n-butanol, acetone, and through chemical synthesis, derivatives of butanol and acetone used by a growing global consumer and industrial products customer base. The platform combines advanced high productivity fermentation with superior-performing proprietary Clostridium microbial biocatalysts and synthetic chemistry to produce a pipeline of high value green chemicals with optimal performance in downstream formulations.
Green Biologics was named to the Global Cleantech 100 list of the top Cleantech companies in the world for 2017 and was recently named the best renewable chemical company in the U.K. in the 2016 Clean Energy Awards.
Green Biologics is transforming the global specialty chemicals market, providing its customers with products and technologies that are more sustainable and higher value than petroleum-based alternatives. For more information, visit www.greenbiologics.com.
About Jungbunzlauer: Jungbunzlauer is one of the world's leading producers of biodegradable ingredients of natural origin. We enable our customers to manufacture healthier, safer, tastier and more sustainable products. Due to continuous investments, state-of-the-art manufacturing processes and comprehensive quality management, we are able to assure outstanding product quality. Our mission "From nature to ingredients®" commits us to the protection of people and their environment.
Read the original release: Jungbunzlauer and Green Biologics Partner on Bio-Based Plasticizers
Racing, Engine Experts See Benefits in Ethanol
February 15, 2017
By Jodi Delapaz
A group of engine experts and motorsports professionals recently testified about the benefits of ethanol during a panel discussion at Growth Energy’s Executive Leadership Conference in Miami.
Growth Energy assembled the panel to highlight engine performance and what the group sees as other advantages of using biofuels.
The panel – “American Ethanol: A 21st Century Fuel for 21st Century Performance” – featured Andy Randolph, technical director of ECR/RCR Engines; Keith Holmes of CK Motorsports; and Kyle Mohan of Kyle Mohan Racing.
Randolph discussed the octane boosting properties of ethanol and concluded that “it adds up to better engine performance for not only racecar drivers, but all drivers.” Randolph also added cost savings to his list of benefits of “choosing E15 at the pump.”
Holmes said he chooses ethanol to fuel his Cat Can Do Racing boats because it gives him a “competitive advantage, burning cleaner and cooler.” CK Motorsports is a Mercury engine dealer, specializing in high performance parts and service.
Mohan said he recommends that drivers fuel up with E15 because it’s better for the environment and gives consumers more miles per dollar.
“We are excited to have been able to assemble such a phenomenal range of experts touching on every facet of engine performance for our members,” said Emily Skor, Growth Energy CEO.
“Each one of these experts sees firsthand the tremendous benefits of ethanol for engines — whether those be race engines, marine engines, or everyday vehicles. We’re thrilled to showcase how these benefits extend to American drivers who are embracing higher ethanol blends, like E15 for its performance, environmental and cost considerations.”
Read the original story: Racing, Engine Experts See Benefits in Ethanol
Dems Probe Trump Adviser Icahn’s Role in Ethanol Policy
February 13, 2017
By Timothy Cama
Senate Democrats are investigating the role that President Trump’s adviser Carl Icahn is playing in setting the administration’s ethanol policy.
The Democrats are concerned that Icahn, a prolific investor whose holding company owns more than 80 percent of fuel refiner CVR Energy, is using his advisory role to steer ethanol policies in his favor.
Sen. Sheldon Whitehouse (D-R.I.) and six of his colleagues wrote to White House counsel Don McGahn Monday, asking for details about what Icahn's interactions with the Environmental Protection Agency (EPA), how he influenced Trump’s decision to pick Scott Pruitt to lead the agency, whether Icahn is recusing himself from some matters and more.
Details that have been reported about Icahn and his role in the administration “suggest a conflict of interest between Mr. Icahn and advice he gave President Trump on the nomination of Mr. Pruitt,” the senators wrote.
“They further suggest he will be actively working to change RFS regulations to benefit CVR. And with a sprawling business empire and potentially unlimited portfolio in the administration to address ‘strangling regulations,’ Mr. Icahn’s role presents an unacceptable risk of further real or potential conflicts of interest absent immediate and thorough steps to address them.”
Trump announced in December that Icahn would be a “special adviser” on regulatory and deregulatory matters and would not be a government employee in any way.
Icahn has been pushing the EPA to tweak the renewable fuel standard in a way that would remove a regulatory “point of obligation” — the responsibility for demonstrating compliance with blending mandates — from fuel refiners and move that obligation to another party in the supply chain.
He wrote last year that the current system is costing CVR hundreds of millions of dollars.
In November, when President Obama was still in the White House, the EPA proposed to formally reject a petition from CVR and other refiners to make the regulatory tweak. But the agency extended the public comment period for that proposal to February, putting the ball in Trump’s court.
At Pruitt’s January confirmation hearing, senators asked him about the ethanol mandate and tried to ascertain whether he would make the obligation change that CVR seeks.
Pruitt largely avoided the question, saying only that he would follow the law, which leaves matters like obligation up to the EPA.
Read the submitted letter here.
Read the original story: Dems Probe Trump Adviser Icahn’s Role in Ethanol Policy
New RFA Report Shows U.S. Distillers Grains Exports Reached 11.48 Million Metric Tons in 2016
February 14, 2017
U.S. exports of distillers grains (DG) — a high protein co-product of dry mill ethanol production used to feed livestock and poultry — totaled 11.48 million metric tons (MMT) in 2016, down 10 percent from 2015’s record-high but still the second-highest on record, according to a 10-page summary of 2016 ethanol co-product trade data published today by the Renewable Fuels Association (RFA). DG exports were shipped to 50 countries on five continents last year.
According to the report, an estimated 31 percent of U.S. DG production was exported in 2016, meaning one out of every three tons produced was shipped to foreign markets. China was the leading destination for U.S. DG, followed by Mexico, Vietnam and South Korea. However, U.S. DG exports to China plunged 63 percent in 2016 compared to 2015, as the country implemented anti-dumping and countervailing duties against U.S. product. Meanwhile, shipments to nine of the other top 10 markets experienced growth in 2016. In fact, DG exports to Mexico, Vietnam, South Korea, Turkey, and Thailand grew by a combined 2.06 MMT in 2016 — equivalent to the annual DG production of 10 average-sized ethanol plants.
“Distillers grains and other co-products have become an enormously important component of the global feed market. This report underscores that our co-products are in high demand in every corner of the world,” said Renewable Fuels Association President and CEO Bob Dinneen. “Unfortunately, we saw a slight downturn in total exports in 2016 because of China’s protectionist actions to shut out U.S. distillers grains. Last week, RFA and our partnering organizations sent a letter to President Trump, alerting him to China’s unfair and illegitimate trade barriers, and urging the incoming U.S. Trade Representative to address the issue. We remain concerned with China’s actions and look forward to the administration’s response to ensure free and fair trade between our countries.”
Among other facts from the RFA report:
S. DG exports had a total value of $2.19 billion in 2016, down 27 percent from 2015 and the lowest in four years. DG export prices averaged $191 per MT, down 19 percent from 2015 and the lowest in six years;
While U.S. DG exports to East Asia were down, shipments to other global regions surged. In particular, Southeast Asia and the Middle East experienced dramatic growth;
S. exports of corn gluten feed (CGF) — a co-product from wet mill ethanol — rebounded to a five-year high in 2016. CGF exports were up 43 percent over 2015 levels. Ireland was the top market, receiving 27 percent of total U.S. CGF exports, while Turkey and Israel were other top markets; and
Total exports of corn and corn-based ethanol co-products tallied 73 million metric tons in 2016, the highest on record.
The new report is a companion to RFA’s 2016 ethanol trade summary published last week.
View RFA’s co-product trade summary here.
Read the original story: New RFA Report Shows U.S. Distillers Grains Exports Reached 11.48 Million Metric Tons in 2016
NDSU Scientists Study Distillers Grains as Fertilizer
February 9, 2017
By North Dakota State University
Distillers grains could be a source of fertilizer for some crops, according to research at North Dakota State University’s Carrington Research Extension Center.
Wet distillers grains and condensed distillers solubles (sometimes referred to as “syrup”) are organic byproducts of ethanol production from corn.
Scientists at the Carrington center have been testing whether wet distillers grains and condensed distillers solubles are a viable source of phosphorus for corn and spring wheat crops. They applied those byproducts, as well as triple superphosphate, a fertilizer with a high phosphorus content, at various levels.
Here’s what they found:
Corn yield in 2016 increased by about 4 bushels per acre when phosphorus (P2O5) was applied at the rate of 40 pounds per acre.
Wheat yield increased by 2 bushels per acre when phosphorus was applied at the rate of 40 pounds per acre and by 5 bushels when phosphorus was applied at the rate of 80 pounds per acre.
In 2016, corn yields were significantly higher from applications of wet distillers grains than the other phosphorus sources, but in 2015, condensed distillers solubles produced much higher yields.
Wheat yield also increased significantly with wet distillers grains applications, compared with triple superphosphate, and applications of condensed distillers solubles produced higher yields than triple superphosphate but not as high as wet distillers grains.
“These results indicate that there are nutrient benefits to crops from using distillers grains as sources of crop nutrients,” says Carrington center soil scientist Jasper Teboh, who is involved in this research.
He speculates that nutrients in distillers grains such as sulfur may have enhanced the effect of the wet distillers grains and condensed distillers solubles. The yield gains from the distillers grains also probably are due to enhanced microbial activity. However, the scientists aren’t sure why the yields from the wet distillers grains were better than from the condensed distillers solubles in 2016 but not in 2015.
Teboh also cautions that the use of distillers grains may not be feasible for all producers.
“Preliminary assessment of net returns to farmers suggests that only producers farming within close proximity to ethanol plants are more likely to benefit from using distillers grains as fertilizer sources because of transportation costs,” he says. “As of early 2016, condensed distillers solubles cost much less ($5 per ton) than wet distillers grains ($30 per ton), and cost about $25 for an applicator to haul and apply within 25 miles of an ethanol plant.”
Visit the Carrington Research Extension Center’s website at http://tinyurl.com/DistillersGrainsasP for more information about this research.
Read the original story: NDSU Scientists Study Distillers Grains as Fertilizer
EIA Revises 2017, 2018 Ethanol Production Forecasts
February 8, 2017
By Erin Voegele
The U.S. Energy Information Administration has released the February edition of its Short-Term Energy Outlook, predicting U.S. fuel ethanol production will average 1.01 million barrels per day in 2017 and 2018, up from 1 million barrels per day in 2016. In January, the EIA predicted ethanol production would average 1 million barrels per day this year, increasing to 1.02 million barrels per day next year.
On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first three months of this year, falling to 1 million barrels per day in the second quarter, increasing to 1.02 million barrels per day in the fourth quarter and finishing out the final quarter of the year at 1 million barrels per day. In 2018, the EIA currently expects fuel ethanol production to reach 1.03 million barrels per day during the first quarter, falling to 1.02 million barrels per day during the second and third quarters, and falling to 980,000 barrels per day during the fourth quarter.
According to the February STEO, the EIA currently expects U.S. fuel ethanol consumption to average 940,000 barrels per day in 2017 and 2018, maintaining the 2016 consumption level.
U.S. regular gasoline retail prices are expected to fall from an average of $2.35 per gallon in January to an average of $2.27 per gallon in February, before increasing to an average of $2.33 per gallon in March. For the full year 2017, gasoline prices are expected to average $2.39 per gallon, increasing to $2.44 per gallon in 2018.
The EIA’s most recent weekly ethanol production data shows production averaged 1.055 million barrels per day the week ending Feb. 3, down from a record 1.061 million barrels per day set the week ending Jan. 27. The EIA’s most recent monthly import data shows the U.S. imported only 31,000 barrels of ethanol in September, all from Canada. The most recent monthly export data shows the U.S. exported 2.904 million barrels of ethanol in November, with Brazil, Canada, and China as the top destinations.
Read the original story: EIA Revises 2017, 2018 Ethanol Production Forecasts