Environmental Protection Agency

November 23, 2016

Rule Summary:

EPA finalized the volume requirements and associated percentage standards that apply under the RFS program in calendar year 2017 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. EPA also finalized the volume requirement for biomass-based diesel for 2018.

The final volumes represent continued growth over historic levels. The final standards meet or exceed the volume targets specified by Congress for total renewable fuel, biomass-based diesel, and advanced biofuel.

Renewable Fuel Volume Requirements for 2014-2018
 20142015201620172018
Cellulosic biofuel (million gallons) 33 123 230 311 n/a
Biomass-based diesel (billion gallons) 1.63 1.73 1.9 2.0 2.1
Advanced biofuel (billion gallons) 2.67 2.88 3.61 4.28 n/a
Renewable fuel (billion gallons) 16.28 16.93 18.11 19.28 n/a

Total renewable fuel volumes grow by 1.2 billion gallons from 2016 to 2017, a 6 percent increase.

Advanced renewable fuel – which requires 50 percent lifecycle carbon emissions reductions – grow by roughly 700 million gallons between 2016 and 2017.

Non-advanced or “conventional” renewable fuel increases in 2017 meet the 15 billion gallon congressional target for conventional fuels.

The standard for biomass-based biodiesel – which must achieve at least 50 percent lifecycle greenhouse gas emission reductions compared to petroleum-based diesel – grows by 100 million gallons. The required volume of biomass-based diesel for 2017 is twice as high as the minimum congressional target.

Cellulosic biofuel – which must achieve at least 60 percent lifecycle greenhouse gas emissions reductions – grows by 35 percent over the 2016 standard.

The advanced biofuel standard – which is comprised of biomass-based diesel, cellulosic biofuel, and other biofuel that achieves at least 50 percent lifecycle greenhouse gas emissions reductions – increases by 19 percent over the 2016 standard.

rfs-charts

Rule History:

On May 18, 2016, EPA proposed the volume requirements and associated percentage standards that would apply under the RFS program in 2017 for cellulosic biofuel, advanced biofuel, and total renewable fuel. EPA also proposed the volume requirement for biomass-based diesel for 2018.

Additional Resources:

Final rule: Renewable Fuel Standard Program: Standards for 2017 and Biomass-Based Diesel Volume for 2018 (PDF)

Response to Comments (PDF)

Read the original release: Final Renewable Fuel Standards for 2017, and the Biomass-Based Diesel Volume for 2018

Energy AgWired

November 21, 2016

By Joanna Schroeder

As more and more consumers choose ethanol at the pump, Bobby Likis, host of Bobby Likis Car Clinic, says there is a continued need to educate mechanics about ethanol. Likis is a 45-year auto veteran who in his shop has worked on more than 200,000 cars and he loves ethanol. He said that most car problems are not caused by ethanol, but by neglect. Likis and I spoke in-depth about ethanol and technicians and following is our discussion.

Q1: How well-versed are today’s auto mechanics when it comes to ethanol fuels?
A: Likis said there is a no question that there is a need for higher education levels around ethanol although states with direct ties to ethanol and agriculture tend to have technicians better informed about the biofuel.

Q2: How familiar are technicians with the basics of ethanol and its assets?
A: Likis said there-in lies the problem. “Most technicians are not even informed about the basics of ethanol,” he replied. “They have been so bombarded by myths promoted by oil companies or uneducated individuals who promote totally unfounded horror stories, that unfortunately many technicians have accepted this water tool fiction as truth.” Ethanol, notes Likis, then becomes an easy blame for technicians who haven’t yet learned or embraced the facts.

The challenge is not only with technicians, Likis continued. “There are many aftermarket companies that prey on unknowing consumers fear and use the ethanol ruins engines myth as a means to sell their pour and pray products.” What exactly are those? Likis explained, “The pour and pray products concept is where people are enticed to buy a product, such as a fuel conditioner, pour it in their gas tank and pray that it fixes their car’s problem.” Likis added, “Cars don’t need to be protected from ethanol, cars love ethanol!”

Q3: As the auto industry moves to achieve 2025 CAFE Standards of 54.5 mpg, how do/should the industry, or others, keep auto technicians informed about these changing technologies such as higher blends of ethanol?
A: Likis answered that car companies are spending billions of dollars to meet these standards. He said they are moving towards success every day by designing smaller, down speeding, high compression ratio engines that deliver higher mpg and torque with fewer emissions. In the industry its called power density. “To reach the full potential of these engines, we need higher blends of ethanol,” said Likis. A great example is Ford’s Eco-Boost engines.

The real question, said Likis, is how do we educate technicians about ethanol facts? He has delivered ethanol technician modules and his Car Clinic team has developed a series of 60 second features named “Calling all Technicians with 20 Facts About Ethanol.” These are aired during his national broadcast and he shares them with his customers. He said that ethanol and biofuel training needs to be integrated into all technician training curriculum in tech schools and colleges.

Q4: What is the future of ethanol and engines?
A: Cars have been using ethanol since the 1970’s and manufactured to run on ethanol since the 80s, said Likis. Today nearly 80 percent of cars can legally run using E15. “There is no reason why we should not be going forward with ethanol. That’s the future. In order to do that I think we need to start with a younger generation of technicians,” Likis answered. These include programs like his and through the National Alternative Fuels Training Consortium, through seminars and even, perhaps, through tool companies that travel shop-to-shop and visit with technicians.

Likis adds, “We as technicians need to help our colleagues better understand ethanol.”

Bobby leaves us with some positive thoughts. “It’s a bright future. Ethanol is a better fuel for internal combustion engines, than crude-based gasoline. Ethanol helps to clean the air, cleans the engines, provides domestic jobs, reduces our nation’s dependence on foreign regimes. Indeed, ethanol is made in America from American resources and is the cheapest and best octane and oxygenate on the planet!

Read the original story: Car Clinic’s Bobby Likis Talks Ethanol & Mechanics

Argonne National Laboratory

November 21, 2016

By Joan Koka

Researchers at the U.S. Department of Energy’s (DOE’s) Argonne National Laboratory have conducted a detailed study of the reflectivity effects of converting land to grow biofuel crops.

Their study is part of an overall analysis of greenhouse gas emissions from land use change: instances where land that was previously forests, grasslands or pastureland is converted to producing biofuel crops. Historically, these types of analyses considered only changes in the amount of carbon stored in the soil and vegetation of these lands.

The new analysis, published in The Royal Chemistry Society's Energy & Environmental Science, incorporates the additional effect of changes in reflectivity, or “albedo.” Albedo effects sum up the amount of incoming solar energy that gets reflected back into space; these changes, along with numerous other factors, in turn contribute to changes in greenhouse gas emissions.

While there is much data variability, the findings reveal that when a piece of land is changed to produce a biofuel crop, albedo effects also changed. When only albedo change effects are considered, researchers found that land converted to producing corn ethanol had a net cooling effect on climate. By comparison, land that was converted to producing miscanthus and switchgrass, two other plant sources for next-generation biofuels, had a net warming effect. But when carbon stock changes, another key effect of land use change, are also taken into account, corn and switchgrass ethanol exhibit net warming effects associated with land use change whereas miscanthus grass ethanol exhibits a net cooling effect.

Led by researchers in Argonne’s Energy Systems and Environmental Sciences Divisions, the work outlines the importance of considering changes in reflectivity when assessing land use change-induced effects of biofuel production on climate.

“Our analysis is helping build a fuller picture of the climate effects of biofuel feedstock production,” said Hao Cai, an Argonne environmental analyst and lead author of the study.

Cai and his team began their research by first collecting data on land cover and albedo gathered from the U.S. Department of Agriculture and NASA satellites, respectively. They mapped the albedo data associated with specific land types—say, corn cropland or prairie. Then they ran simulations where they converted different land types to produce corn, miscanthus and switchgrass, and looked to see what would happen to albedo and to the net cooling or warming of the atmosphere as a result.

Unlike past studies of albedo effects of land use change, which analyzed no more than 20 sites of specific land types, the team investigated millions of sites in more than a thousand counties in the U.S., covering 70 percent of the nation’s corn production fields.

“Another factor that sets this study apart is the specific modeling approach used to simulate albedo effect on a finer scale and provide more robust data analysis,” said Yan Feng, an atmospheric and climate scientist involved in the study.

The model allowed Feng and fellow researchers to examine the albedo dynamics of millions of parcels of land individually in squares just 500 meters at a side (5382 feet).

By analyzing a large number of sites in detail, the researchers were able to take into account site-specific variations to better represent albedo effects in their analysis. Albedo effects varied among corn, miscanthus and switchgrass crops in part due to differences in their size and shape, as well as growth and environmental factors—all of which can vary dramatically from one site to the next.

Albedo also varied considerably based on the type of land that was converted. For example, forest had the lowest albedo compared to other land covers, like shrubland and grassland, found within the same agro-ecological zone.

The magnitude of the area of land converted, as determined by economic modeling, also varied. For example, when the researchers compared miscanthus and switchgrass production necessary to produce a given biofuel volume, they found that converting land to miscanthus had a lower warming albedo effect compared to switchgrass. One cause for this is the fact that miscanthus requires less land than switchgrass to yield an equal volume of ethanol because miscanthus has higher yields.

The researchers used computing resources at the Argonne Leadership Computing Facility (ALCF), a DOE Office of Science User Facility, to process and visualize the albedo and land cover data.

“ALCF’s high-performance computing resources were critical to our analysis based on the amount of data we were working with. The facility provides powerful and helpful tools for data-intensive analyses like this,” said Jiali Wang, an Argonne atmospheric scientist involved in processing the data.
The study, “Consideration of land use change-induced surface albedo effects in life-cycle analysis of biofuels,” was supported by the DOE’s Office of Energy Efficiency and Renewable Energy.

Read the original release: Argonne Researchers Study How Reflectivity of Biofuel Crops Impacts Climate

Ag Web

November 20, 2016

By Bloomberg

The politically contentious Renewable Fuel Standard will survive a Donald Trump administration because ethanol is too well-established in rural areas to be dismantled, Agriculture Secretary Tom Vilsack said. 

"There’s going to be a lot of saber-rattling, but it supports too many jobs and too much rural infrastructure is set up for it," Vilsack said in a Nov. 18 interview that also covered subjects such as trade and immigration. "The Renewable Fuel Standard is solid."

The U.S. Environmental Protection Agency is due to decide whether to raise its targets for national biofuels consumption from 14.5 billion gallons in 2016, bringing it more in line with the 15 billion-gallon mandate envisioned in energy legislation passed in 2007. Ethanol has been criticized for raising food and feed costs, but has been a boon for corn-growers and domestic jobs.

President-elect Trump told the Iowa Renewable Fuels Association earlier in 2016 that the U.S. should increase ethanol mandates, but in September his campaign published a fact sheet calling for removal of the biofuel blending credit system. His campaign later reissued the fact sheet without the language opposing the system. Vilsack, speaking in his U.S. Department of Agriculture office in Washington, said rural support for the rest of the RFS would be enough to withstand attacks on it from other quarters. "I think it will be very difficult for it to be repealed," he said.

Vilsack, the only member of President Barack Obama’s original cabinet still in his post, said U.S. agriculture is in good shape heading into 2017, despite lingering crop surpluses that have pushed down prices. 

"Producers will make different decisions, and over time the surplus will be whittled down, and there will be a weather disaster someplace," said the former governor of Iowa. "I think the arrow is still pointing up."

But his successor may need to buck Trump on trade and immigration. Those 
issues, on which the Republican candidate campaigned for more restrictive policies, are too important for agricultural prosperity to ignore, Vilsack said. He added that less regulation and lower taxes, two areas farmer groups have welcomed as they look forward to a Trump administration, are less important.

The U.S. "can’t declare war on China and Mexico, our number one and number three partners, and not be for immigration, which provides us with our workforce," he said. "You can do away with the EPA tomorrow. You can do away with what you call the ‘death tax’ tomorrow. But if you don’t a have a market, and you don’t have a workforce, what difference will it make?"

Vilsack, 65, said he doesn’t know what his plans will be after he leaves office.

Read the original story: Renewable Fuel Standard 'Solid' Through Trump Era, Vilsack Says

Biomass Magazine

November 16, 2016

By Erin Voegele

The White House has published a mid-century strategy on decarbonization that addresses biofuels and bioenergy. On Nov. 16, the report was filed with the United Nations Framework Convention on Climate Change under the Paris climate deal. 

The White House committed to release the strategy, titled “United States Mid-Century Strategy for Deep Decarbonization,” in March. At that time, the administration made a joint statement with Canada that indicated the two countries would work together to implement the Paris agreement as soon as feasible. In addition to implementing their respective Intended Nationally Determined Contributions, the leaders of both countries also committed to completing mid-century, long-term low greenhouse gas emission development strategies pursuant to the agreement.  

The mid-century strategy spans more than 100 pages and lays out a national U.S. strategy to deeply decarbonize the economy by 2050, aiming to net GHG emissions reductions of 80 percent or more below 2005 levels by 2050. “The MCS demonstrates how the United States can meet the growing demands on its energy system and lands while achieving a low-emissions pathway, maintaining a thriving economy, and ensuring a just transition for Americans whose livelihoods are connected to fossil fuel production and use,” said the White House in the report. “It also shows how the momentum of technological progress created by global commitments to low-carbon innovation and policies will enable increasingly ambitious climate action from all countries.”

Regarding biofuels, the report notes U.S. government-funded research, development, and demonstration (RD&D) has played a foundational role in spurring technological advances throughout the last century. “With the full power of U.S. RD&D efforts unleashed on clean energy technologies, consistent with the Mission Innovation commitment to double clean energy RD&D spending, we can develop new technologies that will increase the pace and reduce the costs of decarbonization,” said the White House in the strategy. “In addition, potential high impact technologies such as CCUS, advanced nuclear, and second generation biofuels are in early stages of development or commercial deployment; to achieve meaningful scale by mid-century, deployment programs may be needed to bring the first set of commercial-scale facilities to market.”

The report also calls for increased support for public and private research, development, demonstration and deployment (RDD&D), noting that different sectors and technologies come with different priorities and needs with respect to RDD&D, as well as different approaches for government support. “For certain technologies at early stages of commercial deployment like carbon capture and storage, second generation biofuels, and emerging advanced nuclear energy, support programs can bring the first set of commercial-scale facilities to market, driving cost reductions through learning and economies-of-scale,” the White House said in the report. “Supporting a broad range of technologies is likely to lower the costs of decarbonization because we do not know today how technologies will progress over many decades.”

Specifically, the report finds RDD&D investment opportunities to reduce biofuel production costs, improve production efficiency, develop drop-in fuels, co-optimize engines with low-carbon fuel to maximize performance and greenhouse gas reductions, and ensure biomass is produced and used in ways that are carbon beneficial.

The report also addresses carbon beneficial forms of bioenergy plus carbon capture and storage (BECCS), which is defined as any facility that combusts biomass for electricity or converts biomass to fuel and captures the resulting carbon dioxide for utilization or storage in underground reservoirs. The report notes BECCS can be utilized across power generation, industrial applications and biofuel production, and highlights once such project in Illinois that captures carbon dioxide from an ethanol plant and sequesters it underground. That project, known as the Decatur Project, captures pure CO2 from a nearby ethanol plant and stores it at pilot scale in a saline aquifer. The report also notes there are other examples of ethanol production plus carbon capture, utilization and storage (CCUS) for enhanced oil recovery. According to the report, BECCS for power production has not yet been tested at scale and its full negative emissions potential depends on the upstream land carbon effects of biomass production.

Within the report, the White House notes a significant portion of the document is devoted to actions needed in the land sector, including the development of carbon-beneficial forms of biomass and negative emissions technologies because they have not received as much in-depth treatment elsewhere. Biomass is seen as playing a particularly important role in energy uses that are difficult to electrify, such as aviation, long-haul trucking, and heat production in certain industrial sectors. Overall, the report states that for the mid-strategy strategy, biomass production in the range of 1 billion dry tons could be produced while maintaining the strategy’s land sector objectives, such as carbon sink, wildlife habit and sufficient food production, assuming efficient land management. “Carbon accounting protocols based on the most up-to-date science can ensure carbon beneficial forms of biomass, or only those sources that result in net reductions of CO2 to the atmosphere, are utilized to support U.S. decarbonization,” said the White House in the report.

“An illustrative 2050 land use scenario consistent with [mid-century strategy] goals, which could entail 50 million acres of forest expansion and 40 million acres of biomass production from 2015 areas, would need to be managed carefully,” states the report. “However, these changes can be made ecologically and economically feasible by focusing on opportunities to deliver multiple products and services on the same acre, including agroforestry, precision agriculture, and bioenergy crop-pasture rotational strategies. For example, in Iowa alone, an estimated 27 percent of cropland, or 7 million acres, may not be profitable in commodity crop production but could be well-suited to perennial grasses or agroforestry (Brandes et al. 2016). Focusing nationally on such areas could minimize land use competition and help increase rural landowner incomes while delivering environmental benefits like improved soil health and reduced nutrient runoff.”

The report addresses several other factors related to the production of biomass and its use in several sectors. It also outlines several specific possible scenarios for the nation’s energy future. A fully copy of the report can be downloaded from the White House website.

Read the original story: White House Decarbonization Report Addresses Biofuels, Biomass

Renewable Fuels Association

November 16, 2016

Millions of Americans preparing for Thanksgiving next week are undoubtedly noticing that dinner will cost less than it did a year ago. According to the U.S. Department of Agriculture, overall grocery prices are roughly 2% lower than at this time last year, and prices specifically for poultry products — like turkey — are down 1.5% compared to last fall. Meanwhile, the amount of corn used for fuel ethanol is primed to set a new record in 2016, up roughly 3% from last year.

The Renewable Fuels Association (RFA), which released an independent analysis today on the impact of ethanol on food prices, says the current collision of falling food prices and record ethanol production should end the contrived “food vs. fuel” debate once and for all.

The new statistical analysis, conducted by Informa Economics IEG, retrospectively examined the effect of ethanol expansion on food prices, concluding that “…retail food prices were not impacted in any demonstrable way by expansion of U.S. grain ethanol production under the Renewable Fuel Standard (RFS) over the past decade.” In fact, the study finds that food price inflation has actually slowed during the “ethanol era.”

The analysis shows that growth in food prices slowed considerably after passage of the RFS2, with prices for groceries advancing at roughly half the rate seen prior to the program’s adoption. “Prior to the passage of RFS2, food away from home [e.g., restaurants] grew at an average of 3.4%, versus 3.2% for food at home [e.g., groceries]. After RFS2, food away from home grew at 2.6%, versus 1.8% for food at home,” the study found. “The increase in the food [consumer price index] actually decelerated as the usage of corn in ethanol production increased dramatically.”

The study also examines the impact of ethanol on corn prices, and in turn the impact of corn prices on retail food items. While the authors conclude that corn prices were positively impacted by ethanol expansion, higher corn prices did not necessarily translate into higher consumer food prices.  “Statistical analysis shows that the link between corn prices and overall food prices has been weak,” according to the report, adding that changes in food prices are primarily driven by “…the costs of transforming farm products to retail grocery products, along with transportation and distribution at various levels of the supply chain.” The analysis shows that only 19% of consumer spending on food pays for the value of the farm commodities, with the remaining 81% paying for “…post-farm-gate activities (e.g., transportation, processing, marketing).”

Other factors that drive farm commodity and retail food prices were examined, with Informa concluding that core inflationary pressures, weather events (e.g., flooding and droughts), exchange rates, and energy prices all impacted commodity and food prices over the past decade. In fact, from 2009 to 2014, the impact of crude oil prices on consumer food price inflation was nearly nine times greater than the impact of corn prices.

“The U.S. ethanol industry is set to produce a record volume of high octane renewable fuel this year,” said RFA President and CEO Bob Dinneen “And at the same time, consumers are spending considerably less on food today than they did a year ago. Today’s lower food prices continue a trend of deceleration in food inflation rates that began nearly 10 years ago when the RFS2 was adopted. As the new Informa report clearly demonstrates, there is no discernible link between ethanol production and retail food prices — here in the U.S. or globally. It’s time to put an end to the ridiculous ‘food vs. fuel’ myth that has been propagated for far too long by self-interested opponents of biofuels and the RFS.”

View the analysis here.

Read the original story: New Report Knocks the Stuffing Out of ‘Food vs. Fuel’ Turkeys

StreetInsider.com

November 14, 2016

Gevo, Inc. (NASDAQ: GEVO), announced that the first commercial flight using Gevo’s cellulosic renewable alcohol to jet fuel (ATJ) is expected to take place today originating in Seattle and flying to Ronald Reagan Washington National Airport.

Previously, on October 11, 2016, Gevo announced that it had completed production of the world’s first cellulosic renewable jet fuel that is specified for commercial flights. Gevo successfully adapted its patented technologies to convert cellulosic sugars derived from wood waste into renewable isobutanol, which was then further converted into its ATJ. This ATJ meets the ASTM D7566 specification allowing it to be used for commercial flights. The cellulosic ATJ was produced in conjunction with the Northwest Advanced Renewables Alliance (“NARA”). NARA supplied the sugars that were derived from forest residuals in the Pacific Northwest. Gevo produced the cellulosic renewable isobutanol in St. Joseph, Missouri. The cellulosic renewable isobutanol was then transported to Gevo’s biorefinery facility in Silsbee, Texas, where the cellulosic renewable isobutanol was converted into ATJ.

oday’s flight follows on the back of the two commercial flights that were flown by Alaska Airlines on Gevo’s ATJ in June of this year. The ATJ for the June flights was derived from isobutanol produced at the Gevo’s facility in Luverne, MN, using sustainable corn as the sugar feedstock.

Gevo believes that its renewable ATJ has the potential to offer the most optimized operating cost, capital cost, low carbon potential, feedstock availability, scalability, and translation across geographies, as compared to other renewable jet fuel options.

“This first of its kind flight demonstrates Gevo’s commitment and ability to convert next generation cellulosic feedstocks into fungible hydrocarbons. We are pleased that we had the opportunity to prove, through the NARA project, that cellulosic sugars from wood can be used to successfully make commercial jet fuel. We congratulate all of our fellow NARA partners and thank the U.S. Department of Agriculture, National Institute of Food and Agriculture, for its unwavering support in the pursuit of renewable jet fuel. I also thank Alaska Airlines, who continues to be a great partner,” said Pat Gruber, Gevo’s Chief Executive Officer.

Read the original story: Gevo (GEVO) Says Alaska Airlines to Fly Today on Its Cellulosic Renewable Alcohol to Jet Fuel

Ethanol Producer Magazine

November 11, 2016

By NASCAR

NASCAR announced Nov. 11 that it will surpass 10 million competition miles on Sunoco Green E15, a biofuel blended with 15 percent American-made ethanol, by the end of the 2016 season. The achievement will be celebrated during the NASCAR Sprint Cup Series race at Phoenix International Raceway this weekend. The 10 million miles will have been accumulated across practice, qualifying and racing laps since the biofuel was adopted by the sport.

Six years ago, NASCAR entered into a groundbreaking partnership with Sunoco and American Ethanol, launching its long-term biofuels program to reduce emissions across its three national series. After an exhaustive analysis, Sunoco formulated Sunoco Green E15 to allow for a seamless transition, and the biofuel made its debut at Daytona International Speedway in 2011. All the ethanol for Green E15 is produced from American-grown corn at Sunoco’s ethanol manufacturing facility in Fulton, New York.

“As we approach 10 million miles on Sunoco Green E15 across our three national series, it’s evident that the renewable, higher ethanol blended fuel performs flawlessly against our rigorous racing conditions,” said Brent Dewar, NASCAR chief operating officer. “This remarkable milestone is the result of an industry-wide commitment to demonstrate high performance racing with reduced emissions, while educating our fans about the benefits of sustainable and renewable American ethanol.” 

Since transitioning to the biofuel, NASCAR has helped validate the fuel’s qualities in front of an audience of millions of NASCAR fans and is helping shift attitudes and behaviors around the use of ethanol. According to new research conducted in July, when compared to non-fans, NASCAR fans are more likely to support the use of ethanol blended gasoline to fuel NASCAR race cars, their own car, and cars on the road today to increase U.S. energy independence. Source: Custom Environment-Related Tracker commissioned by NASCAR and conducted by Toluna (July 2016).

“We are thrilled to reach this important milestone with NASCAR and to be a part of the effort to reduce the sport’s impact on the environment with Sunoco Green E15, while increasing horsepower and standing up to the most demanding conditions on the track,” said Emily Skor, CEO of Growth Energy. “Like their favorite NASCAR drivers, consumers are now utilizing a fuel with a blend of 15 percent ethanol. Americans have already driven over 500 million miles on E15. Today, nearly 400 stations across 28 states sell E15 and those numbers continue to climb. Consumer demand is on the rise because Americans are finding out that E15 is the right choice for their engines, their wallets and the environment.”

The move to Sunoco Green E15 coincided with the incorporation of more technology into NASCAR race cars. In 2012, the NASCAR Sprint Cup Series transitioned from carbureted engines to electronic fuel injection using an electronic control unit (ECU)—the first computer technology used in a NASCAR race car. In addition, the series moved from analog gauges to a digital dashboard this season.

“As a lifelong fan and a proud team owner, I am certain that the switch to an ethanol blend has been a great move by NASCAR,” said Richard Childress, Chairman and CEO of RCR. “We’re proud of our connection to the ethanol industry and all of the good that it’s doing for our country, and could not be more pleased to celebrate passing 10 million miles with the industry.”

During the pace car laps at the start of the race on Sunday at Phoenix International Raceway, NASCAR fans at the start/finish line will be asked to participate in a coordinated American Ethanol green flag wave to help commemorate the 10 million-mile achievement.

The Chase for the NASCAR Sprint Cup will continue with the Can-Am 500 at Phoenix International Raceway on Sunday, Nov. 13 at 2:30 p.m. ET on NBC, MRN and SiriusXM NASCAR Radio.

Read the original story: NASCAR to Surpass 10 million Miles on Sunoco Green E15

Morning Consult

November 10, 2016

By Jack Fitzpatrick

The Environmental Protection Agency on Thursday proposed to reject requests to change the point of obligation to comply with the Renewable Fuel Standard.

The RFS currently requires importers and refiners to comply with requirements to mix ethanol and other renewable fuels into the gasoline supply, or to buy credits from those who have done so. Some refiners requested the agency consider moving the obligation to wholesale purchasers.

On Thursday, the EPA proposed to reject that request.

“We believe that the current structure of the RFS program is working to incentivize the production, distribution, and use of renewable transportation fuels in the United States,” the agency wrote in its proposal.

It added, “We do not believe that the petitioners have demonstrated that changing the point of obligation would likely result in increased use of renewable fuels.”

Read the original story: EPA Aims to Reject Request to Move RFS Point of Obligation

Ethanol Producer Magazine

November 9, 2016

By the Renewable Fuels Association

U.S. ethanol exports totaled 99.6 million gallons (mg) in September, up 28 percent–nearly 22 mg–over August, according to government trade data released Nov. 4 and analyzed by the Renewable Fuels Association. This marks the highest monthly volume exported in almost five years (December 2011). Much of the upturn can be attributed to 27.9 mg in shipments to Canada, as trade across the northern border expanded by 33 percent over August rates. Brazil imported 18.1 mg in September, down 7 mg from August and falling back to second place. China reappeared as a significant buyer after taking the summer off, with imports of 17.8 mg of U.S. product in September. The Philippines (10.4 mg), the United Arab Emirates (9.2 mg) and South Korea (5.4 mg)–countries which tend to make larger purchases on an intermittent basis–all made larger purchases in September. Just six countries purchased 92 percent of U.S. ethanol exports in September. Year-to-date exports stood at 693.9 mg, implying an annual total of 925.2 mg for calendar year 2016.

September exports of U.S. denatured fuel ethanol more than doubled from the prior month to 44.1 mg. Canada (26.0 mg, or 59 percent), China (14.9 mg, or 34 percent) and Peru (3.1 mg, or 7 percent) were the primary markets—a change from the typically Canadian-dominated trade flow. Export sales of undenatured fuel ethanol in September held firm at high levels, increasing 2 percent over August levels to 51.5 mg. Brazil backed off from August undenatured imports, buying 18.1 mg (35 percent) in September. The Philippines export market was reinvigorated with 10.4 mg (20 percent) of undenatured product, while the 9.2 mg (18 percent) to the UAE reflected only the second time in two years that U.S. undenatured ethanol entered the country. South Korea, China and Singapore were other larger customers for undenatured fuel ethanol.

September sales of denatured ethanol for non-fuel use dropped back to a more normal volume of 2.1 mg after reaching nearly 6.5 mg in August. Canada was the primary customer with 1.9 mg, down from 3.0 mg the prior month, while the remaining volume was parceled out among several countries. September sales of undenatured fuel for non-fuel, non-beverage use increased 79 percent to 1.9 mg. South Korea purchased 1.5 mg (79 percent) in September–more product than it has brought in over the past two years combined–while Mexico returned to a more typical volume of 180,042 gallons (9 percent).

Following three straight months of sizable ethanol imports, September volumes entering the United States were fairly insignificant at just 5,535 gallons. About 5,000 gallons of undenatured ethanol were sourced from China and the remainder was Canadian denatured ethanol. Year-to-date total imports are 33.7 mg, suggesting annualized imports just shy of 45 mg. Should this volume be realized, the United States would import less than half of what it brought in for calendar year 2015.

September Ethanol Exports 2016

U.S. distillers dried grains with solubles (DDGS)—the animal feed co-product from dry mill ethanol production—in the global marketplace have been making measurable strides since the beginning of the year; however, September data showed a 15 percent pull-back from the prior month with 990,971 metric tons (mt) shipped. Once again China was the top market for U.S. exports with 166,650 mt, which is a third less than entered the country in August. China’s share of the total U.S. export market in September fell to just 17 percent–in sharp contrast to taking in half of all U.S. distillers grains exports in calendar year 2015. In September, South Korea increased its offtake to 166,650 mt (13 percent) and Vietnam purchased 123,267 mt (12 percent), while Mexico scaled back from August volumes by 39 percent to 122,513 mt (12 percent). Other larger markets include Thailand (87,506 mt), Egypt (56,461 mt), Turkey (46,200 mt) and Canada (41,291 mt). Through September, DDGS exports stood at 8.6 million mt, indicating an annualized total of 11.5 million mt. If realized, this would be the second largest DDGS export volume in history.

Read the original story: RFA: September Ethanol Exports Balloon as China Returns to Market