Ethanol Producer Magazine

April 6, 2016

By Growth Energy

An important milestone for higher ethanol fuel blends was reached recently. Major gasoline retailers working with Growth Energy have reported that over the past 12 months, using the U.S. average gas mileage of 20 miles-per-gallon, consumers have surpassed 150 million miles using E15 without any negative effects.

NASCAR has trusted E15 for over five years and 8 million miles of racing because it burns cleaner, cooler and increases octane, which improves engine performance. We’re now seeing consumers choosing it for the same reasons. Retailers including Sheetz, Kum & Go, MAPCO, Minnoco, Murphy USA and Protec have responded to consumer demand for lower cost and higher performing fuel by adding E15 at their pumps and, their choice is paying off.

“I have been using E15 for the last three years at Minnoco and have noticed no mileage loss, better engine performance and great savings at the pump,” said Mark Foudray, a loyal E15 consumer from Shakopee, Minnesota.

Steve Anderson, an AAA approved and ASE certified service consultant and owner/operator of Marshall Cretin Minnoco from St. Paul, Minnesota, also lauded E15’s engine boosting qualities, saying, “We have a loyal following for the E15 product. Approaching 1 million gallons pumped we have nothing but positive results.” He added, “E15 has higher octane and burns cleaner—the interior of the engines are cleaner and the tailpipe makes more air, and less pollution. E15 has been widely tested and is safe for all vehicles model year 2001 and newer. We see over 50 percent of our customers purchasing E15 on a daily basis. The statistics don't lie. It is a great product and we are pleased to offer it as a choice to our fueling customers.”

Higher ethanol blends are increasingly popular choices for consumers who demand a 21st century fuel for 21st century cars, and E15 checks that box. In addition, E15 and higher ethanol blends are better for our environment and the air we breathe, as they emit less emissions than other harmful alternatives and cost consumers less at the pump.

“I have been selling E15 to our customers since the fall of 2013. Since I introduced it, there has not been one complaint due to mileage loss or engine performance. I hear only positive comments with drivability and the lower cost at the pump. Today's cars are designed to utilize the higher octane to improve performance through different computer management systems. I see higher-level blends of ethanol, like E15, being the next fuel of future,” said Joel Hennen, a third generation owner/operator of Hennen’s Auto Service from Shakopee, Minnesota.

“This milestone is a clear indication that American consumers are embracing biofuels like ethanol, and E15 particularly, because they recognize its many benefits—from increased engine performance and reduced oil imports, to less toxic emissions,” said Tom Buis, co-chair of Growth Energy, “Americans want more options at the pump and we hope that this will motivate more retailers to offer E15 at their locations, because consumers are ready for the fuel that’s made for today’s cars.

Read the original story: Growth Energy: More Than 150 Million Miles Driven on E15

Renewable Fuels Association

Today, the American Petroleum Institute unveiled anti-biofuel results from a new Harris Poll.

Renewable Fuels Association President and CEO Bob Dinneen had the following response:

“It’s no surprise that API, an organization which has made its top priority to get rid of the RFS, is trotting out a phony faux poll to support its antediluvian narrative about biofuels. This push poll, which uses opinionated statements to elicit a negative response to biofuels, is not reflective of reality. For example, the renewable fuel standard (RFS) has not raised food prices 25 percent, as API claims, but instead food prices have risen by an average of just 2.7 percent per year since 2005, the year RFS was adopted. In fact, only 17 cents of every dollar spent on food pays for the raw farm ingredients in the food item. The other 83 cents pay for processing, transportation, labor, packaging, advertising and other costs.

“If you want to know what the American public really thinks, with direct questions and no spin, look no further than a Morning Consult poll conducted April 1–3, on behalf of RFA, in which nearly six in 10 registered voters (57 percent) support the RFS. Conversely, only 19 percent oppose the RFS. Additionally, 64 percent of those polled have a favorable opinion of biofuels and two-thirds (66 percent) have a favorable opinion of corn-based ethanol. This data is consistent with the findings from the approximately 18,000 registered voters we have polled over the past year.

“With these growing levels of support for biofuels, it’s no wonder that API President Jack Gerard told Politico’s Morning Energy last month that the organization was pivoting its strategy toward reforming, rather than repealing, the RFS. API can’t continue to support repeal because Americans want more fuel choice, not less.”

The Morning Consult poll included results from 2,004 registered voters, with a margin of error of +/-2 percent. To view a copy of the poll results, click here.

Read the original story: Push Poll Push Back

Brownfield Ag News

April 4, 2016

By Mark Dorenkamp

A renewable fuels industry leader says Minnesota legislators exploring ways to reduce emissions already have a viable option for fueling vehicles.

A proposal introduced last week by Representative Pat Garofalo would provide rebates of up to $2,500 dollars for those who buy or lease a new electric or plug-in hybrid car.

Minnesota Biofuels Association executive director Tim Rudnicki tells Brownfield if lawmakers are serious about reducing emissions from the transportation sector, why not focus instead on internal combustion engines driven by the majority of travelers.

“What’s a possible option right here, right now?  I don’t want to say things are always simple and easy, but in this case the beginning step is simple and easy.  It’s called E15.  That’s 15 percent ethanol blended with 85 percent petroleum gasoline.”

Rudnicki says any incentive to reduce emissions is welcome, but questions offering financial assistance for electric vehicles when there’s currently not enough supply to meet demand.

“It would seem to us that if orders are already placed and folks are standing in line, those individuals probably don’t need any type of incentive.  So the market will work in that case, and it apparently is.”

He suggests that if further investments are made to bring renewable fuels to more Minnesotans, it would make a dramatic difference.

“If all the regular gasoline in Minnesota were E15–five percent more ethanol than is currently in the fuel today–there’s the potential to knock another 368,000 tons of CO2 out of the transportation sector.”

Rudnicki says that’s the equivalent of removing 77,000 vehicles from Minnesota highways, and lawmakers should consider building on the success ethanol is already having if the goal truly is to tackle greenhouse gas issues.

Read the original story and listen to the full interview: Fuel Option That Reduces Emissions Already Exists

Business Wire

April 5, 2016

Today, six biofuel trade associations sent a letter to House and Senate leaders asking Congress for a multiyear extension of advanced biofuel tax credits. The Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization (BIO), Growth Energy, National Biodiesel Board and Renewable Fuels Association sent the request in a letter to Senate and House leaders, Senate Committee on Finance leaders, and House Ways and Means Committee leaders.

Congress granted a two-year extension to the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit, and the Alternative Fuel Vehicle Refueling Property through the Protecting Americans From Tax Hikes Act of 2015, which became law on Dec. 18, 2015. While other energy production tax credits were extended through 2019, these provisions expire at the end of 2016.

The letter sent today states, “This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future. As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, as Congress works on developing energy tax extenders legislation, we urge you to ensure that advanced biofuels are part of the package. Extending some 2016 expiring energy tax provisions and not others creates a piecemeal approach and investment uncertainty across the energy sector and distorts the playing field for biofuel producers.”

Tom Buis, Co-chair of Growth Energy, stated, “These incentives are important in providing certainty for investment into second-generation biofuels.”

Brooke Coleman, Executive Director of the Advanced Biofuels Business Council, added, “There is no good rationale for letting temporary tax breaks for advanced biofuels expire against the backdrop of ongoing, permanent and substantial subsidies to fossil fuels. Congress must extend advanced biofuel tax incentives as long as our competitors in the sector – oil and gas – continue to receive special allowances from the federal government. To do otherwise would be to further distort private investment toward oil and gas.”

Renewable Fuels Association President and CEO Bob Dinneen said, “Short-term tax incentives are akin to new drivers in a stick shift vehicle. The cars haltingly lurch forward for a time, but suddenly stall. The advanced biofuel industry needs certainty if it is to remain commercially viable, as it continues to bring new facilities and technologies online. Longer term incentives would go a long way to making sure the industry continues its growth, and don’t leave consumers stalled along the way.”

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section, added, “For several years now, policy uncertainty at the federal level has undercut investment in cellulosic and advanced biofuels even while pioneering companies proved the technology and started up the first commercial-scale production facilities. It will take several more years for companies to plan, finance and build the next wave of advanced biofuel facilities. Stable policy in the form of a multiyear extension of these advanced biofuel tax credits is necessary to help companies secure capital for these projects.”

Anne Steckel, Vice President of Federal Affairs at the National Biodiesel Board, said, “Biodiesel producers across the country are ready to expand production and hire new workers, but they can’t do it when they don’t know what their tax liability will be in nine months. We need to end this cycle of on-again, off-again incentives and replace it with stable, long-term policy for clean fuels that encourages economic growth and innovation.”

A copy of the letter is available at here.

Read the original release: Biofuel Trade Associations Ask Congressional Leaders to Extend Advanced Biofuel Incentives

In 2015, there were 7 issued air pollution warnings specifically attributed to particulate matter within the Twin Cities. 40% or 145 days had a moderate level category of particulate matter emissions, higher than any other place in Minnesota and over double the amount compared to next largest state area. For 2016, there has already been one issued air pollution warning on January 14 for particulate matter.

Global Renewable Fuels Alliance

March 29, 2016

Today, Bliss Baker, the President of the Global Renewable Fuels Alliance (GRFA), sent letters to the national leaders of 47 countries that committed to combating climate change as contributors to the historic agreement at the recent Conference of the Parties to the UN Framework Convention on Climate Change (COP21).

“These countries deserve credit for their pledged contributions to the ambitious international efforts to reduce green house gas (GHG) emissions as part of the COP21 agreement,” Baker said.

Given the scale of the challenge now being confronted, estimated to represent global CO2 emission reductions of 80% by 2050, countries will need to pursue all viable options to transition away from fossil fuel consumption in all sectors.

It is estimated that the transportation sector produces 25-30% of the world’s GHG emissions, making it a priority for national governments as they revise their Intended Nationally Determined Contribution (INDC) plans in the lead up to the 2020 implementation date of the COP21 agreement.

“National governments have a real opportunity to lead by example in developing enhanced biofuel-friendly policies that encourage the development of new technologies and support the production of renewable fuels with the smallest possible footprint,” Baker said. “The GRFA encourages national governments to highlight the significant environmental and economic benefits that ethanol-supportive policies are making, and will continue to make, in order to encourage other countries to pursue domestic opportunities presented by biofuels,” he added.

In its letter, the GRFA offered the expertise of its members to work with government leaders in the development of forward-thinking policies that maximize the advantages of biofuel technologies that are demonstrated to be effective, affordable and immediately available.

Governments Sent Letters

• Australia
• Austria
• Belgium
• Bulgaria
• Canada
• Chile
• Colombia
• Costa Rica
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Ecuador
• Estonia
• Ethiopia
• Finland
• France
• Germany
• Greece
• Hungary
• Indonesia
• Ireland
• Italy
• Jamaica
• Lithuania
• Luxembourg
• Malta
• Mauritius
• Mexico
• Netherlands
• New Zealand
• Norway
• Paraguay
• Peru
• Poland
• Portugal
• Republic of Slovenia
• Romania
• Slovak Republic
• South Africa
• Spain
• Sweden
• Thailand
• Ukraine
• United Kingdom
• United States
• Vietnam

The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 90% of global biofuels productions. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible footprint.

Read the original release: GRFA Offers Support for Policies to Reduce Transport Emissions

Hastings Tribune

March 27, 2016

By Amy Roh

Improving efficiency in the ethanol industry has been crucial to its survival during economic downturns. 

Todd Sneller, administrator of the Nebraska Ethanol Board in Lincoln, pointed to a recent study by the U.S. Department of Agriculture that highlighted the improvements in efficiency. 

When the ethanol industry started, the energy put into processing at a plant was barely less than the energy created. For every unit of fossil energy put into a plant, 1.2 to 1.5 units of energy was produced.

“Now the latest USDA study says that for every unit of fossil energy going into a plant, there are four units of energy that come out of that,” Sneller said. “That’s a terrific increase over time.”

He pointed to companies using different seed varieties that improve oil extraction or starch conversion and other improvements to develop the ethanol sector over time. He said the companies that invested the large amounts of money they made at the beginning were able to lower production costs to help sustain themselves through economic downturns in the industry.

“I’ve been interested in seeing those trends because they speak to a maturing of the sector as time has gone on,” he said. “In times of marginal profitability, like we’re in now, the focus really has evolved to recognize if you’re sloppy during those periods, you’re probably going to have a tough go of it.”

With stricter carbon emission regulations being enacted around the globe, Sneller said, ethanol has become more popular in the world market. 

“A lot of this is going to places in the world where low carbon fuel standards have been embraced to a bigger extent than they have in the U.S., so those really become the emerging markets in the ethanol sector,” he said. 

Besides a lower cost, he said, ethanol needs to leave its mark with its other added values, including lower carbon intensity and lower toxicity. Given its higher octane and cleaner burning components, ethanol has a competitive advantage over gasoline when one is looking to comply with carbon emission and greenhouse gas regulations. 

But Sneller said he is concerned about the Environmental Protection Agency’s undermining of the Renewable Fuel Standard requirements set out by Congress in the Energy Independence and Security Act of 2007.

The bill set out to increase the volume of renewable fuel product to be blended into transportation fuel from 9 billion gallons in 2008 to 36 billion gallons by 2022. At this point, however, the EPA has lowered the associated incremental increases several years in a row. 

Instead of the robust growth expected, he said, the ethanol sector has seen policy languish in oil industry lawsuits. Investors are ready to support new technology being developed in the emerging market, but it’s being hampered by the EPA’s actions.

“Because the EPA has insisted on undermining the standards that Congress has set, it’s caused a lot of hesitation so you see delays in rolling out new technology,” he said. “That sort of uncertainty really puts the brakes on investment.”

While oil lobbyists try to cast aspersions on the ethanol industry, Sneller said, people need to examine the real price of oil, including money spent protecting shipping lanes, cleaning up oil spills and tending to public health and the environment. 

And it doesn’t just affect the ethanol sector. 

Sneller said automakers need a higher-octane fuel to meet the carbon emission standards imposed on them. Automakers have developed small engines that operate at a lower cost but require a higher octane fuel. But before they can produce vehicles that perform best at E25 or E30, they need to be assured those biofuels will be available. 

He said promoting a variety of ethanol blends would also give consumers options. 

“What we’re trying to do is make sure that when you pull up to a gas pump, you have a choice other than 100 percent hydro-carbon product,” he said. “You have a choice of ethanol blends that may range up to 85 percent. That’s been the real push — to give consumers a choice.”

Read the original story: In Lean Market, Efficiency Improvements Key for Ethanol

The Dickenson Press

March 16, 2016

By Mike Jerke

American-made ethanol is a clean-burning, environmentally friendly biofuel that represents an exciting step forward from dirty, foreign-sourced oil, yet an op-ed (“Renewable Fuel Standard continues to devastate”, March 10) being circulated in papers around the country paints a very different picture while relying on dubious arguments unsupported by basic logic or current data.

Interestingly, the author of that op-ed, George David Banks, is executive vice president of The American Council for Capital Formation, a group with deep ties to the oil industry that has a clear financial interest in keeping Americans hooked on oil.

Mr. Banks is spreading his dishonest scare tactics by submitting identical opinion pieces in dozens of newspapers all over the country without disclosing his ties to Big Oil lobbyists. This isn’t new for Banks. As a Senate staffer, National Journal once reported he was caught on email encouraging oil industry lobbyists to better coordinate their efforts to protect their tax exemptions that cost the American public $9.5 billion annually. It’s clear that Mr. Banks is a creature of Washington, D.C., who has little idea or concern for policies that actually improve the lives of Americans.

So one must ask, why do oil companies feel the need to hide behind front groups with non-descript names run by D.C. insiders while spending millions of dollars attacking modern biofuels that offer clear environmental, economic and performance advantages? The only logical conclusion is that the oil industry wants to limit consumer choice at the pump to maintain their near monopoly on the American energy market.

In 2005, there was bipartisan agreement in Congress on the need to increase our use of biofuels, so Republicans and Democrats worked together to pass the Renewable Fuel Standard (RFS) to take advantage of the environmental gains made possible through biofuels. And the RFS has been a resounding success.

As Janet McCabe, an official with the Environmental Protection Agency said last fall, “the biofuel industry is an incredible American success story, and the RFS program has been an important driver of that success — cutting carbon pollution, reducing our dependence on foreign oil, and sparking rural economic development.”

As CEO of Guardian Energy, I am proud of the products we produce and honored to tout the tremendous benefits ethanol and other biofuels have to offer American drivers. Biofuels significantly decrease greenhouse gas emissions in comparison to regular gasoline, some by more than 100 percent, in fact. Ethanol in particular replaces dangerous additives in gasoline that have been linked to higher cancer rates. Thanks to the RFS, that means the air we breathe today is appreciably cleaner.

Ethanol is made right here in America and is already in 97 percent of the fuel we use. In all likelihood, the gasoline you use in your car is blended with 10 percent ethanol. In 2015 alone, the RFS was responsible for a 527-million-barrel reduction in foreign oil imports. By relying less on foreign oil, we also lower the price of gasoline. Studies have shown that ethanol usage decreased the cost at the pump by as much as $1.50 a gallon during gas price spikes in recent years. And since it is American made, we are less vulnerable to the whims of foreign regimes that try to fix the price of oil to their benefit.

The RFS and biofuels are moving America forward in discernable ways. Now is not the time to roll back the clock and increase our reliance on foreign sources of oil that have higher costs — both financially and environmentally.

The RFS is a rare instance of Democrats and Republicans working together to advance solutions that benefit all Americans. By setting clear, laudatory goals for the use of biofuels, the RFS ensures we all enjoy a greener tomorrow. From cleaner air to more affordable fuel, the benefits of this program are enjoyed by all of us every single day.

Mike Jerke is CEO of Guardian Energy LLC, a cooperative effort of six Midwest farmer-owned ethanol plants based in Janesville, Minn.

Read the original story: Jerke: Despite Big Oil’s Efforts, Biofuels Are Moving U.S. Forward

Renewable Fuels Association

March 16, 2016

Today, the House Oversight Subcommittees on Interior and Healthcare, Benefits and Administrative Rules are holding a joint hearing to ostensibly examine the Renewable Fuel Standard. However, once again, no one from the U.S. biofuels industry was invited to testify, silencing a powerful voice that could speak to the provision’s implementation and effect. If invited to testify, the ethanol industry would have talked about the numerous benefits of the program and why continued support is needed to help overcome barriers erected by the incumbent oil industry.

“The Renewable Fuel Standard is currently the only law to reduce greenhouse gas emissions from the transportation sector,” said Renewable Fuels Association President and CEO Bob Dinneen. “It has enhanced U.S. energy security by virtually eliminating gasoline imports. Ethanol is the cleanest, lowest cost, highest value octane source available to refiners today, and so is helping to lower consumer gasoline prices. The RFS has been an unmitigated success, something the subcommittees should hear today from someone in the industry,” he added.

“Unfortunately, the committee has stacked the witness list with oil company apologists intent upon undermining public support for this important program,” Dinneen said. “Why is the committee afraid to hear all sides of the debate?”

According to prepared remarks provided on the committee’s website, EPA plans to again cite concern with the “E10 blend wall” as part of the reason why the agency lowered the final conventional 2014–2016 RFS renewable volume obligations below the statutory requirement. That issue is currently before the D.C. Court of Appeals in multiple lawsuits filed by both biofuel and petroleum interests.

“EPA is sticking to its script,” said Dinneen. “But the agency is once again demonstrating it does not understand Congress’ objective in passing the RFS in the first place. Congress wanted to maximize the use of renewable fuels. It wanted to break down the blend wall and other obstacles to low carbon fuels. It wanted the RFS to drive marketplace change and promote investment in new technologies and infrastructure to reshape America’s energy portfolio. However, EPA’s timid enforcement of the RFS has prevented that from happening.”

Conversely, the U.S. Department of Agriculture has been helpful through its recent Biofuel Infrastructure Partnership, which aims to add more than 1,400 ethanol blender pumps to market in 21 states. This effort, along with those already underway in ethanol and agriculture, will add E15 and E85 at nearly 2,000 new stations. Today, E15 and E85 are sold at 180 stations and 3,434 stations, respectively.

“It is bewildering to me how two agencies, under the same administration, are taking such disparate approaches to biofuels,” said Dinneen. “USDA’s efforts are helping to grow our industry, while EPA is hampering our industry and preventing the continued evolution of biofuels toward lower carbon, higher octane alternatives.”

The subcommittees will also hear anti-RFS testimony from ActionAid USA and The Heritage Foundation.

Read the original release: What’s Missing from House Oversight RFS Hearing? The Ethanol Industry

Hoosier Ag Today

March 10, 2016

By Gary Truitt