Green Plains to Use Enogen Corn from Syngenta
December 8, 2017
By Syngenta
Syngenta has announced a partnership with Green Plains Inc. to expand its use of Enogen corn enzyme technology across its 1.5 billion gallon production platform.
Green Plains is one of the largest owners of ethanol production assets in the world, purchasing more than 500 million bushels of corn each year. Using Enogen corn as a portion of the feedstock enables alpha amylase to be delivered directly in the grain, eliminating the need to add a liquid form of the enzyme and significantly reducing the viscosity of the corn mash.
According to Green Plains President and CEO Todd Becker, the opportunity to enhance production and invest locally are key benefits of using Enogen corn.
“We have been using Enogen corn at a number of our locations for the past several years and have noted significant benefits, including enhanced yield and reduced energy costs,” Becker said. “Combining our focus to buy more corn directly from farmers and purchasing alpha amylase locally, in the form of high-quality grain for all of our plants, we believe Enogen will create value for our shareholders, growers and the communities where we do business.”
Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and creates a win-win-win scenario by adding value for ethanol plants, corn growers and rural communities. Enogen is making dramatic gains not only in the field, but in ethanol plants, as well, and is helping to fuel enzyme innovation.
“Enogen is rapidly gaining popularity because of the value it delivers to ethanol producers and the opportunity it provides corn growers to be enzyme suppliers for their local ethanol plants,” said Jeff Oestmann, head of biofuels operations – Enogen at Syngenta. “Enogen corn enzyme technology creates increased profit potential for ethanol producers and corn growers while adding significant incremental value at the local level for communities that rely on their ethanol plant’s success.
“Syngenta is committed to the success of the U.S. ethanol industry and to helping ethanol plants adopt the best enzyme strategy. We are proud to have made a significant investment to bring this game-changing technology to market to help make ethanol more sustainable and to help plants differentiate their offerings and support their local communities by keeping enzyme dollars local,” Oestmann added.
Today, 97 percent of America’s motor fuel mix contains about 10 percent ethanol, and higher blends are increasingly available. These new consumer options have appeared, in part, due to the work of the ethanol industry in pushing for more options like E15 for consumers at the pump. Ethanol is helping America reduce its dependence on foreign oil, and is helping to create jobs that can’t be outsourced. Enogen not only helps keep enzyme dollars in local communities, it also supports the creation of jobs in the United States.
The robust alpha amylase enzyme found in Enogen grain helps an ethanol plant significantly reduce the viscosity of its corn mash and eliminates the need to add a liquid form of the enzyme. This breakthrough reduction can lead to unprecedented levels of solids loading, which directly contributes to increased throughput and yield, as well as critical cost savings from reduced natural gas, electricity and water usage.
Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. And, numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.
Read the original story: Green Plains to Use Enogen Corn from Syngenta
Testing Being Performed as Part of FAA’s CLEEN Program to Promote the Use of Bio-Based Jet Fuels
December 11, 2017
Press Release
ENGLEWOOD, Colo., Dec. 11, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that GE Aviation had commenced jet engine combustor component testing with a jet fuel comprised 100% of Gevo’s renewable alcohol-to-jet fuel (ATJ) . The testing is being performed as part of the Federal Aviation Authority’s (FAA) Continuous Lower Energy, Emissions and Noise Program (CLEEN). CLEEN is the FAA's principal environmental effort to accelerate the development of new aircraft, engine technologies, and to advance sustainable alternative jet fuels, in conjunction with aviation industry leaders such as GE Aviation.
Specifically, this testing is designed to enable the greater displacement of petroleum-based jet fuel by bio-based alternative products. Bio-based hydrocarbon fuels have similar performance characteristics to the petroleum-based fuels used today, albeit with reductions in particulate matter and other air quality related emissions. Some bio-based jet fuels, such as Gevo’s ATJ, have the potential to improve performance, such as providing greater energy density which translates into better mileage.
GE Aviation is a part of General Electric Company, and is a world-leading provider of jet engines, components and integrated systems for commercial and military aircraft.
“GE Aviation’s collaboration with the FAA and Gevo under CLEEN is an excellent example of our long-standing commitment to sustainable aviation. Efforts such as this one are expected to help accelerate the transition from petroleum-based fuels to more environmentally friendly ones,” said Dr. Gurhan Andac, Engineering Leader, Aviation Fuels & Additives, GE Aviation.
“If we are truly going to reduce our greenhouse gas (GHG) emissions from aviation, we need to be able to replace larger percentages of petroleum jet fuel with bio-based alternatives such as Gevo’s ATJ. The future is to replace the whole barrel of oil with bio-based hydrocarbons that stimulate the economy, mitigate GHG emissions, draw on abundant resources and enhance sustainability. We want to thank the FAA and GE Aviation for their vision in supporting projects like this one,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, MN. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Learn more at our website: www.gevo.com.
Read the original release: Testing Being Performed as Part of FAA’s CLEEN Program to Promote the Use of Bio-Based Jet Fuels
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US Ethanol Industry Sets New Production Record
December 7, 2017
By Erin Voegele
The U.S. ethanol industry set a new production record the week ending Dec. 1, with production averaging 1.108 million barrels per day, according to data published by the U.S. Energy Information Administration. The new production record breaks the one set in mid-November, when production averaged 1.074 million barrels per day the week ending Nov. 17.
EIA data shows the U.S. ethanol industry has set new records for weekly ethanol production five time so far this year, including three new records that were set in January, one that was set in November, and the current record set the week ending Dec. 1.
In its Short-Term Energy Outlook for November, the EIA predicted that ethanol production will average 1.03 million barrels per day this year, increasing to 1.04 million barrels per day next year.
Read the original article: US Ethanol Industry Sets New Production Record
U.S. Ethanol, DDGS Exports Up in October
December 7, 2017
U.S. ethanol exports totaled 93.6 million gal. in October, up 8% from September shipments, according to government data released this week and analyzed by the Renewable Fuels Assn.
Ann Lewis, research analyst for the association, noted that Canada was again the top destination for U.S. exports, at 33.9 million gal. (more than one-third of total exports) — an 18% increase over September. Spain was the second-leading market for U.S. ethanol in October, making its first meaningful purchase in 37 months and taking in 13.4 million gal. India's imports of U.S. ethanol fell 35% from September to 13.2 million gal., but that was good enough to rank third in October.
U.S. ethanol exports to all destinations for the first 10 months of 2017 stood at 1.09 billion gal., indicating an annualized export volume of 1.30 billion gal.
Four countries — Canada, Spain, India and Brazil — accounted for 78% of all shipments in October, while another 20% was parsed out among seven other markets.
Exports to Brazil in October ticked downward for the third straight month, which Lewis said was likely a result of the nation implementing a tariff rate quota and 20% tariff in September. U.S. shippers sent 12.9 million gal. of ethanol to Brazil, which was a 32% decrease from September.
According to the data, October exports of undenatured fuel ethanol decreased 12% to 43.0 million gal. — the lowest volume in 13 months — as the two largest undenatured markets significantly decreased their imports. The U.S. shipped 13.2 million gal. to India (down 35%) and 12.9 million gal. to Brazil (down 32%). The Philippines (4.6 million gal.), Mexico (3.0 million gal.) and Spain (2.9 million gal.) rounded out the top five largest markets for undenatured product.
U.S. exports of denatured fuel ethanol recovered in October, with a 47% increase to 46.6 million gal. Canada (32.9 million gal.) and Spain (10.5 million gal.) represented the lion's share of the denatured fuel ethanol export total, Lewis said.
Overseas sales of undenatured ethanol for non-fuel, non-beverage purposes decreased by a third to 2.2 million gal. Saudi Arabia purchased 1.7 million gal. (76% of exports), with the remaining volumes distributed to multiple countries. Exports of denatured ethanol for non-fuel, non-beverage purposes decreased 34% to 1.8 million gal., with Canada (900,000 gal.), Nigeria (400,000 gal.) and Mexico (400,000 gal.) as the primary customers.
Lewis also noted that the U.S. recorded meaningful fuel ethanol import volumes for the sixth straight month this year, with 2.9 million gal. of Brazilian undenatured ethanol on the books in October. Year-to-date fuel ethanol imports totaled 55.8 million gal., a 66% increase over the same period last year. Still, annualized import volumes are estimated at just 66.9 million gal.
Data also showed that exports of dried distillers grains with solubles (DDGS) expanded 14% in October to 903,290 metric tons (mt), which Lewis said is the largest volume in seven months. The top three customers increased purchases over September levels, with Mexico remaining the top destination at 205,899 mt, up 15% from September. Other leading destinations included Turkey at 115,559 mt (up 35%), Vietnam at 102,004 mt, South Korea at 84,642 mt and Indonesia at 84,448 mt.
Read the original article: U.S. Ethanol, DDGS Exports Up in October
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Ontario Looks to Double Amount of Ethanol in Gasoline
December 4, 2017
By Mike Crawley
The Ontario government is proposing to double the minimum amount of ethanol in gasoline, a step that would form one of the province's biggest moves toward hitting its greenhouse gas (GHG) reduction targets.
The plan puts Ontario on track to become the first province to require fuel suppliers to put at least 10 per cent ethanol in regular gasoline, starting in 2020. The province's current minimum ethanol mandate is five per cent.
The proposed changes would reduce carbon emissions by about two megatonnes per year. That's the equivalent of taking about 130,000 cars off the roads, according to Chris Ballard, minister of the Environment and Climate Change.
"Increasing ethanol content in gasoline is a very significant step forward in helping us meet our targets," Ballard said Friday in an interview with CBC News. "We're trying to drive down what's coming out of people's tail pipes in terms of carbon content."
Ontario's proposal would require the ethanol that is blended into fuel to be 35 per cent lower in net greenhouse gas emissions than gasoline.
Transportation produces about one-third of Ontario's carbon emissions, more than any other sector.
"It's a really important move to make sure we're de-carbonizing our transportation sector," said Erin Flanagan, a director of policy for the Pembina Institute. "These kinds of policies make a lot of sense."
"This is really going to help spur investment in our industry," said Jim Grey, chief executive of IGPC Ethanol Inc. and chair of Renewable Industries Canada, the national association of biofuel producers.
"It is probably the most significant, and one of the quicker ways that the government can help move toward its target on GHG reductions," Grey said in a phone interview.
The federal government is in the midst of creating a new cleaner fuel standard that could involve mandating an increase in the minimum required ethanol content nationally, currently set at five per cent.
Canada's Ecofiscal Commission, an independent group of economic policy analysts, reported recently that while biofuels like ethanol have resulted in significant reductions in greenhouse gas emissions, they have done so at a high cost to taxpayers and the economy.
The commission recommends governments phase out their ethanol content rules, rather than increase them as Ontario is doing. Their report argued that the quota gives an unfair advantage to ethanol producers and inhibits the development of other low-carbon technologies.
"Decarbonizing the transportation sector will involve many different and competing technologies; the technologies that prove the most effective and economically viable should win the day," said the report.
The Liberal government in Ontario mandated the five per cent minimum ethanol content rules in 2007. Since then, the government pumped some $500 million in public money into ethanol producers.
An ethanol company was the biggest corporate donor to the Ontario Liberal Party in recent years, a CBC News investigation found in 2016. GreenField Specialty Alcohols Inc., its related companies and its founder donated more than $480,000 to the party since 2007, while receiving more than $160 million in public funding.
On Thursday, the U.S. Environmental Protection Agency announced that refiners must use 15 billion gallons of conventional renewable fuels (predominantly ethanol) next year, holding steady with the quota it set for 2017. There has been pressure on the Trump administration from oil-producing companies to reduce the renewable quota, while midwestern corn-producing states wanted to see an increase.
Some critics have blamed rising ethanol demand for soaring food prices, but the scientific evidence is unclear.
Read the original article: Ontario Looks to Double Amount of Ethanol in Gasoline
Sen. Klobuchar on EPA Release of Renewable Fuel Standard Requirements
November 30, 2017
Press Release
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN), a member of the Senate Agriculture Committee, issued the following statement following the release of the Environmental Protection Agency’s 2018 and 2019 Renewable Fuel Standard (RFS) volume requirements.
“Renewable fuels are a Minnesota-grown economic generator for our state and country. The Administration’s choice to maintain ethanol volume requirements for 2018 and 2019 is a good decision that underscores the importance of—and signals a commitment to—corn ethanol. However, failing to increase the blend targets of advanced biofuels hamstrings the growth we have seen in clean energy innovation, needlessly flat-lining a sector that creates good jobs and strengthens rural communities. A strong RFS means a strong economy, improved national security, prosperous rural communities, and U.S. leadership in the energy of the future. I’ll continue to work with the Administration to ensure that the standard is administered in a way that is good for Minnesota and rural communities across the country.”
For years, Klobuchar has led a bipartisan push for the EPA to release a stronger RFS to support American jobs and decrease dependence on foreign oil. Last November, the former Administration released a stronger final rule for 2017, which will require a record amount of biofuel to be mixed into our transportation fuel supply next year. Minnesota’s twenty ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. In April, Klobuchar and Senator Chuck Grassley (R-IA) led a bipartisan group of 23 senators in urging the Administration to reject changes to the RFS that would upend stability and predictability for small businesses and rural communities.
Read the original release: Sen. Klobuchar on EPA Release of Renewable Fuel Standard Requirements
Report: US Corn, Ethanol Could Benefit From China E10 Mandate
November 28, 2017
By DTN/Progressive Farmer
China’s newly instituted E10 mandate has the potential to create more demand for both corn and ethanol produced in the United States, according to a new analysis from the Center for Agricultural and Rural Development at Iowa State University.
In its fall 2017 agricultural policy review, CARD said there are many unknown details about China’s mandate. However, the Chinese are expected to see an increase in gasoline consumption from about 40 billion gallons in 2017 to 46 billion gallons in 2020.
“Meeting the national E10 mandate would require an extra 3.6 billion gallons of ethanol, putting China ahead of the European Union to become the world’s third-largest ethanol consumer,” CARD said.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than fourfold output growth within three years (assuming domestic production is to keep up with consumption).”
As U.S. ethanol producers have faced concerns about the implementation of the Renewable Fuel Standard in recent years, there has been an increased emphasis on growing export markets in China and elsewhere.
China’s government announced the new E10 mandate in September as a way to decrease the nation’s corn stockpiles that peaked at more than 4 billion bushels in 2015-16.
According to CARD, the total accounts for about half of world ending stocks and would be enough for domestic consumption for about six months in China. The stockpiles grew as a result of a corn price support policy that was paying Chinese corn producers more than twice the international price level until 2016.
“Burdened by high storage cost, food safety risks, and potential waste, China recently adopted multiple measures to cut supply and increase demand,” CARD said.
“These measures include replacing the support price with a producer support based on planted area and financial assistance for corn processors. These measures have been effective — since 2015, China’s corn consumption has caught up with production, the price for corn dropped to the lowest point in six years, and ending stock has been decreasing. The E10 mandate will further increase the demand for corn and speed up reduction of the stockpile.”
CARD said the mandate started on a trial basis in 11 provinces and will become national by 2020.
“This measure would require ethanol consumption in China, the largest motor vehicle market in the world, to at least quadruple within the next three years,” the analysis said.
“For U.S. producers, this recent development fuels interest in whether China is going to import ethanol and/or corn (the main feedstock for ethanol production in China) to meet the mandate.”
CHINA ETHANOL GAINS
CARD said that in 2016, China produced more than 1 billion gallons of ethanol. It became the fourth-largest ethanol-producing nation in the world behind the United States, Brazil and the European Union. China’s average annual production growth rate in ethanol production was about 17% from 2004 to 2016.
China’s primary ethanol feedstock is corn, according to the report, which accounts for about 64% of ethanol production in the country. China started ethanol production at four state-owned plants in northern China in 2002 after corn stockpiles reached historical highs.
“As the stockpile decreased and refineries started to use newly harvested corn for feedstock, the government stopped approving additional generation-one ethanol refineries in 2007. By calling for ‘appropriate development of grain-based ethanol,” according to CARD, “the current national E10 mandate relaxes the government’s previous stance against corn-based ethanol.”
In 2006, China began development of ethanol production using cassava. The starchy root plant now accounts for about 23% of China’s total ethanol production.
“However, it is challenging to grow enough generation 1.5 feedstock domestically, and cassava refineries in China still heavily rely on imports,” CARD said.
“Cassava refineries are located in southern China, close to domestic and foreign cassava production regions. Recently, China has been encouraging ethanol production using cellulosic feedstock. However, cellulosic ethanol production is not expected to reach large-scale production until 2025.”
The CARD analysis said recent low oil prices have hurt Chinese ethanol producers. In addition, the Chinese government gradually has removed ethanol subsidies.
“China has been importing substantial quantities of ethanol in the past two years,” CARD said.
“Before 2015, even though the imported ethanol was much cheaper than domestic ethanol, very little ethanol was imported. This is due to government forbidding distributors to handle imported ethanol in order to protect the domestic ethanol industry.”
US IMPORTS
In 2015, ethanol imports to China reached almost one-quarter of the country’s total supply in 2016, or about 225 million gallons. About 95% of those imports came from the United States. China was U.S. ethanol’s third-largest export destination in 2016, amounting to about 17% of total U.S. ethanol exports.
At the end of 2016, China increased the ethanol import tariff from 5% to 30%. CARD said that action caused the forecast for imports in 2017 to fall to just 35% of 2016 levels.
With a national E10 mandate in place, however, CARD said China will need to take action to ramp up ethanol availability.
“Since details of the mandate have not been disclosed, it is not yet clear how China will generate more than four-fold output growth within three years,” the report said.
“Currently, production capacity utilization rate is about 85%; therefore, a short-term production spur can be achieved with existing facilities. Beyond that, a dramatic increase in capacity is needed. Since it takes one to two years to build a large-scale generation 1 or 1.5 refinery in China, it is possible that China will be able to construct the physical facilities in time.”
If current trends in production and consumption continue, according to CARD, “China’s corn stock will fall quickly, opening up potential opportunities for more imports.”
The analysis said China’s E10 mandate is likely to speed up the reduction in corn stockpiles, requiring between 650 million and 1.35 billion bushels of corn per year.
“If China wants to maintain a stockpile of 1.39 billion bushels, the lowest in recent history, it will need to import 2 billion bushels of corn by 2020-2021 and much more after that,” CARD said.
“China may change its policies if it finds high levels of corn import unacceptable. In the past, China has imported large quantities of ethanol when domestic production has fallen short of demand. If imports surge as a result of the E10 mandate, the United States, the top ethanol exporter to China, will benefit” even with a 30% tariff in place at the time of the analysis.
Read the CARD analysis here.
Read the original article: Report: US Corn, Ethanol Could Benefit From China E10 Mandate