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EPA Responds to GAO Report on RIN Prices, Small Refineries

Ethanol Producer Magazine

Dec 20, 2022

The U.S. EPA on Dec. 20 released a final analysis on the price of renewable identification numbers (RINs) and small refineries in response to a recommendation included in a recent U.S. Government Accountability Office report. The final analysis confirms the EPA's conclusion that small refineries recover their Renewable Fuel Standard compliance costs in the price of gasoline and diesel that they sell.

The GAO in November released a report on the RFS small refinery exemption (SRE) program, claiming that its analysis determined that the EPA does not have assurance that its decisions about SREs are based on valid information. The report also claims that the EPA and DOE do not have policies and procedures specifying how they are to consult about and make exemption decisions. Representatives of the ethanol industry slammed the report, calling it shoddy and obsolete.

Within the report, the GAO makes seven specific recommendations related to the SRE program. One of those recommendations calls on the EPA to reassess its conclusion that all small refineries recover their compliance costs in the price of the gasoline and diesel they sell, including by fully examining and documenting RIN market performance and RIN pass-through in all relevant fuel markets.

The EPA on Dec. 20 released its response to that recommendation. EPA said it has completed a final analysis that “resolves this recommendation and confirms EPA’s preliminary results from its initial analysis and explanation provided to GAO, which is included in Appendix IV of the GAO report.”

As part of its final analysis, the EPA analyzed more than 2.2 million RIN transactions, accounting for 140 billion RINs, for companies that traded separated RINs for conventional renewable fuel (D6) and biomass-based diesel (D4). The analysis covered approximately 43 percent more RIN transactions than were analyzed in a recent GAO report. The transactions include RIN price data for 24 small refineries that purchased and/or sold RINs as separate facilities. All 24 of those small refineries have submitted SRE petitions to the agency for at least one RFS compliance year.

According to the EPA, its analysis found that on average, these 24 small refineries paid 1.1 percent, or 1.2 cents, more per RIN when buying separated RINs when compared to the average daily price and 0.5 percent, or 0.6 cents, more per RIN than the largest 20 refiners.

A full copy of the final report is available on the EPA website.

Read the original story here.

CoBank Says 2023 Outlook for Biofuels is 'Very Strong'

Ethanol Producer Magazine

Dec 15, 2022

CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.”

CoBank predicts that the ethanol industry will benefit from greater usage of E15, growing demand for corn oil, and strong pricing of carbon dioxide. According to the report, carbon dioxide, a coproduct of ethanol production, is experiencing a demand surge from both industrial users and carbon sequestration projects.

The outlook for other types of biofuel is strong as well. CoBank predicts the momentum behind renewable diesel will continue to grow as new soy crush processing and oil refinement facilities come online, supported by the Inflation Reduction Act of 2022.

A full copy of the report can be downloaded from the CoBank website.

Read the original story here.

OMB Reviews E15 Petition Filed by Midwest Governors

Ethanol Producer Magazine

Dec 8, 2022

The U.S. EPA on Dec. 5 delivered a proposed rule to the White House Office of and Management and Budget related to a petition filed by several Midwest governors seeking a solution to year-round E15 sales in their states. OMB review marks a final step before a proposed rule is released for public comment.

A summary published by the OMB explains that the proposed rule “implements a provision in the Clean Air Act which provides that a governor of a state may request that the 1-psi volatility waiver provided in the statute for gasoline-ethanol blends be removed in the state.” The agency said it has received such a request from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.

Several Midwest governors in April 2022 sent a letter to EPA Administrator Michael Regan announcing they would seek such a waiver, which would allow E15 to be sold year-round in their states.

Additional information is available on the OMB website.

Read the original story here.

EIA: Ethanol Production Up 6%, Stocks Up 1%

Ethanol Producer Magazine

Dec 7, 2022

U.S. ethanol production was up 6 percent the week ending Dec. 2, according to data released by the U.S. Energy Information Administration on Dec. 7. Weekly ending stocks of fuel ethanol were up 1 percent.

Ethanol production averaged 1.077 million barrels per day the week ending Dec. 2, up 59,000 barrels per day when compared to the 1.018 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Dec. 2 was down 13,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 23.257 million barrels the week ending Dec. 2, up 323,000 barrels when compared to the 22.934 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 2 were up 2.793 million barrels.

Read the original story here.

US Representative Angie Craig Introduces Bipartisan Year-Round E15 Legislation with Unprecedented Industry and Family Farmer Support

Congresswoman Angie Craig

Dec 8, 2022

WASHINGTON, DC –Yesterday, U.S. Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) introduced the Consumer and Fuel Retailer Choice Act of 2022, bipartisan, bicameral legislation that would enable the year-round, nationwide sale of ethanol blends higher than 10%, helping to lower fuel prices and improve stability and certainty in the U.S. fuel market. This bill is supported by the largest unified group of farming, biofuels and oil companies to date.

Representative Craig’s bill is the House companion to the Senate bill introduced by Senators Amy Klobuchar (D-MN) and Deb Fischer (R-NE) in late November.

“E15 creates opportunities for our family farmers, supports economic growth in rural America and lowers prices at the pump for Minnesotans – and ensuring this cheaper, biofuel alternative is available year-round is a win-win for all those involved in its production,”said Representative Craig.“I’m proud to have worked with Representative Smith on this bill to support our biofuel producers and farmers – and look forward to getting over the finish line.”

“Year-round E15 is a win-win as it boosts American energy independence and ensures greater affordability and opportunity for consumers as well as producers,”said Representative Smith. “E15 benefits the agriculture, energy, and transportation sectors. There’s no reason not to extend to E15 the same regulatory relief currently provided to E10, and I thank Senator Fischer for her leadership on this in the Senate and Rep. Craig for her partnership on our bill in the House.”

TheConsumer and Fuel Retailer Choice Act of 2022 would extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent to allow for the year-round, nationwide sale of E15. In addition, it would ensure consistency across the fuel markets and limit disruptions across the national fuel supply chain by prohibiting the removal of the 1-psi waiver for E10 ethanol.

In the House, theConsumer and Fuel Retailer Actis cosponsored by Representatives Cindy Axne (D-IA), Dusty Johnson (R-SD), Dan Kildee (D-MI), Randy Feenstra (R-IA), Mike Flood (R-NE), James R. Baird (R-IN), Tracey Mann (KS-1), Jim Banks (IN-03), Mary Miller-Meeks (R-IA), Jake LaTurner (R-KS), Michelle Fischbach (MN-07), Ashley Hinson (IA-01),Vicky Hartzler (MO-4), Sam Graves (R-MO), Ken Buck (R-CO), Cheri Bustos (D-IL), Brad Finstad (R-MN), Ron Estes (R-KS), Tim Ryan (D-OH), James Comer (R-KY) and Jason Smith (R-MO).

The Senate companion to the bill is sponsored by the U.S. Senators Amy Klobuchar (D-IL), Deb Fischer (R-NE), Chuck Grassley (R-IA), Tina Smith (D-MN), John Thune (R-SD), Sherrod Brown (D-OH), Joni Ernst (R-IA), Roger Marshall (R-KS), Dick Durbin (D-IL), Jerry Moran (R-KS), Tammy Baldwin (D-WI), Kevin Cramer (R-ND), Ben Sasse (R-ND) and Mike Rounds (R-SD).

In Congress, Representative Craig has championed the issue of year-round availability of E15. This past year, she pushed the Administration to extend the availability of E15 during the summer to provide American consumers with access to a cheaper biofuel alternative at their local gas station. Additionally, she is also the lead sponsor of the House-passed Year-Round Fuel Choice Act, which would permanently allow the summer sales of E15.

Read the original press release here.

Over 250 Organizations, Companies Call for Quick Senate Passage of Year-Round E15 Bill

Renewable Fuels Association

Dec 7, 2022

A bill introduced in the Senate to allow nationwide year-round sales of the lower-cost E15 ethanol blend has received the support of more than 250 organizations and companies, including fuel retailers, petroleum refiners, farm groups, ethanol producers, and many others. In a letter to congressional leadership today, the entities collaborated to urge the speedy adoption of S. 5145, the Consumer and Fuel Retailer Choice Act of 2022, before this session ends.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” the letter states. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape. In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 continue to resurface every summer.”

“As demonstrated by today’s letter, an increasingly broad and diverse coalition of companies and organizations has rallied together to support the year-round availability of lower-cost, lower-carbon E15,” said Renewable Fuels Association President and CEO Geoff Cooper. “We all agree that the marketplace desperately needs the certainty and stability that this legislation would provide. And by ensuring consumers nationwide have uninterrupted access to E15, this bill would help lower pump prices, enhance our nation’s energy security, and reduce emissions of both greenhouse gases and the pollutants that contribute to air pollution and smog.”

Last month, RFA and the American Petroleum Institute led a broad coalition of energy and agriculture organizations that called on Congress in a similar letter to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations. RFA estimates that nearly 97 percent of registered vehicles on the road today are legally approved by the U.S. Environmental Protection Agency to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15.

Recent analyses by RFA and the U.S. Energy Information Administration confirm that expanded use of E15 provided meaningful consumer savings at the pump last summer, as war in Ukraine pushed crude oil and gasoline prices to historic highs. Further, a recent CSP survey found that one out of every five fuel retailers plan to add the E15 blend at their locations in the coming year; over 2,800 fuel stations currently carry the blend.

Read the original story here.

EIA: Biofuel Capacity Up in September, Feedstock Consumption Down

Ethanol Producer Magazine

Dec 6, 2022

U.S. biofuels operable production capacity increased slightly in September, according to data released by the U.S. Energy Information Administration on Nov. 30. Total feedstock consumption was down when compared to both the previous month and September 2021.

Total biofuels production capacity reached 21.383 billion gallons in September, up 13 MMgy when compared to the 21.37 billion gallons of capacity reported for the previous month, and up 500 MMgy when compared to the 20.883 billion gallons of capacity reported for September 2021.

Ethanol capacity was at 17.165 billion gallons in September, up 13 MMgy when compared to the previous month, but down 243 MMgy when compared to the same month of last year.

Biodiesel capacity was at 2.084 billion gallons in September, flat with the previous month, but down 377 MMgy when compared to September 2021.

Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates was at 2.134 billion gallons in September, unchanged from the previous month but up 1.12 billion gallons when compared to September of last year.

Total biofuels feedstock consumption fell to 23.958 billion pounds in September, down from both 26.682 billion pounds the previous month, and 24.375 billion pounds in September 2021.

Biofuel producers consumed 21.473 billion pounds of corn in September, down from 24.12 billion pounds in August and 22.799 billion pounds in September 2021. Grain sorghum consumption was at 408 million pounds, down from 446 million pounds the previous month, but up when compared to the 27 million pounds consumed in September of last year.

Approximately 934 million pounds of soybean oil went to biofuels production in September, down from 925 million pounds in August, but up when compared to the 779 million pounds consumed by biofuel producers in September 2021. Biofuel producers also consumed 302 million pounds of corn oil in September, up from 298 million pounds the previous month and 167 million pounds in September of last year. Canola oil consumption was at 131 million pounds, down slightly from 132 million pounds in August, but up from 106 million pounds in September 2021.

Biofuel producers also consumed 438 million pounds of yellow grease, 131 million pounds of beef tallow, 62 million pounds of white grease, and 13 pounds of poultry fat in September. Consumption was at 384 million pounds, 163 million pounds, 64 million pounds and 12 million pounds, respectively, in August, and at 219 million pounds, 134 million pounds, 54 million pounds and 18 million pounds, respectively, in September 2021.

The EIA withheld the volume of other waste oils, fats and greases that went to biofuel production in September to avoid disclosure of individual company data, but reported that 62 million pounds of these feedstocks were consumed in August, along with 5 million pounds in September of last year. An additional 66 million pounds of feedstock classified as “other” was used to produce biofuels in September, compared to 76 million pounds the previous month and 63 million pounds in September 2021.

Additional data is available on the EIA website.

Read the original story here.

USGC: Egyptian Poultry Sector Holds Potential for US DDGS Exports

Ethanol Producer Magazine

Dec 5, 2022

To reengage with the poultry sector in Egypt, U.S. Grains Council staff in the Middle East, Africa and Europe region traveled to the country in early November to conduct a general trade servicing mission.

While the Council already conducts programs in Egypt dealing with starch and storage, the organization sees the poultry sector as a place for immense growth, which could prove to be a new outlet for U.S. DDGS exporters.

Egypt has been a growing market for distiller’s dried grains with solubles (DDGS) in the past, but sales have since leveled off. The Council sees the broiler industry in Egypt as a space to introduce the commodity, as the country’s broiler sector does not currently use DDGS in its feed.

“The broiler sector is the largest feed sector in Egypt, representing roughly three million metric tons (MMT) of feed in 2021,” said Reece Cannady, USGC assistant regional director for the Middle East and Europe. “At a 10 percent inclusion rate, this is a potential market size of 300,000 MT of DDGS, which, at today’s prices, equates to roughly $100 million.”

While in Egypt, Cannady and Jad Wakileh, USGC consultant in the region, met with many stakeholders across the marketplace, including poultry production companies, grain importers and traders, in addition to visiting wet markets and grocery stores for further education on local supply chains.

“Our engagement in Egypt has been very intense and long-standing,” Cannady said. “The Council has been actively engaged in helping fix the misperception of U.S. corn quality in Egypt, and that hard work is paying off; now it’s time to move the needle for DDGS exports to the country.”

Read the original story here.

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U.S. Senators Introduce Bill To Expand E15 Gasoline Sales, With Support From Oil Group

Nov 30, 2022

NEW YORK, Nov 29 (Reuters) - U.S. senators from Nebraska and Minnesota introduced legislation on Tuesday that would expand nationwide sales of E15, a gasoline with a higher blend of ethanol, after gaining support for the bill from an oil industry trade group for the first time, Senator Deb Fischer from Nebraska told Reuters.

The legislation, introduced by Fischer and Senator Amy Klobuchar from Minnesota and supported by the American Petroleum Institute (API), would mark a huge win for the ethanol industry and corn farmers who have repeatedly tried to expand sales of E15 but have faced hurdles.

While it is unknown if the bill has the support it needs to pass both the House and Senate to become law, the backing of the oil industry has lifted a notable political obstacle.

U.S. Environmental Protection Agency (EPA) anti-smog regulations currently restrict summertime sales of E15, even though research has shown the higher percentage blend may not increase smog relative to the 10% blend called E10 that is now sold year-round.

Reuters reported this month that the API began cooperating with biofuel industry groups about legislation after governors from major corn-producing Midwestern states earlier this year requested the EPA allow for expanded sales of E15 in their own states. The governors' proposal raised oil industry concerns about fuel regulations differing from state to state.

"We have good support," Fischer told Reuters. "When you look at the impact it'll have, especially on the central part of the United States, the Midwest and part of the south, I think that's extremely important."

Fischer and Klobuchar's legislation, if passed, would nullify the governors' request and avoid patchwork E15 expansion, Fischer said.

"By allowing for the year-round sale of E15 nationwide while also preserving access to lower ethanol gasoline blends, this bipartisan legislation strengthens the reliability of the fuel supply chain and ensures American consumers have access to the fuels they depend on every day," said Will Hupman, API's vice president of downstream policy.

The legislation also has the support of Senator Kevin Cramer from North Dakota, a co-sponsor of the bill. Cramer's support is significant, as North Dakota is one of the top oil-producing states, Fischer said.

Organizations including the API, the Renewable Fuels Association (RFA) and the National Farmers Union wrote to congressional leaders this month to urge them to adopt legislation to expand nationwide E15 sales.

"We thank Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which brings much-needed consistency and stability to the marketplace," said RFA President Geoff Cooper, after Tuesday's legislation announcement.

Read the original story here

EIA: Ethanol Production Up 3%, Stocks Up 7%

Ethanol Producer Magazine

Nov 23, 2022

U.S. fuel ethanol production expanded by 3 percent the week ending Nov. 18, according to data released by the U.S. Energy Information Administration on Nov. 23. Ethanol stocks were up more than 7 percent.

Fuel ethanol production averaged 1.041 million barrels per day the week ending Nov. 18, up 30,0000 barrels per day when compared to the 1.011 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending Nov. 18 was down 38,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 22.829 million barrels per day the week ending Nov. 18, up 1.531 million barrels when compared to the 21.298 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Nov. 18 were up 2.665 million barrels.

Read the original story here.

Ethanol, Petroleum and Ag Groups Express Support for Year-Round E15 Legislation

Renewable Fuels Association

Nov 22, 2022

In a letter sent yesterday to U.S. Senate and House leadership, a broad coalition of energy and agriculture organizations called on Congress to quickly adopt legislation that would resolve inconsistent fuel volatility regulations. Specifically, the groups expressed support for legislation that would result in equal regulatory treatment for all gasoline blends containing 10 percent ethanol (E10) or more, including gasoline with 15 percent ethanol (E15). Such legislation would permanently remove the regulatory barrier that has historically made it extremely difficult for retailers to offer E15 in the summertime.

The letter, sent to Senate Leaders Chuck Schumer and Mitch McConnell, House Speaker Nancy Pelosi, and House Minority Leader Kevin McCarthy, was signed by the Renewable Fuels Association, American Petroleum Institute, American Farm Bureau Federation, Association of Equipment Manufacturers, Growth Energy, National Association of Convenience Stores, National Corn Growers Association, National Council of Farmer Cooperatives, National Farmers Union, National Sorghum Producers, NATSO, representing truck stops and travel plazas, and SIGMA: America's Leading Fuel Marketers.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” according to the letter. “Our groups have come together—for the first time ever—to support legislation that would resolve this issue once and for all.”

The groups are advocating for a simple legislative fix that would provide equal treatment nationwide to all gasoline blends containing 10 percent ethanol or more, while simultaneously superseding state regulatory action recently sought by a group of governors. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape,” the letter says.

“In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 that would continue to resurface every summer. Thus, we urge Congress to act quickly to adopt legislation that will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations.”

Read the original news release here.

EIA Report Spotlights Increased Ethanol Blend Rate, Lower Cost to Drivers

Renewable Fuels Association

Nov 16, 2022

A report released today by the U.S. Energy Information Administration demonstrates clearly that higher blends of ethanol helped moderate fuel prices in the wake of the Ukraine invasion. The report noted that the U.S. ethanol blend rate hit a record summer average of 10.5% in 2022 and averaged 10.6% in June and August. “Fuel ethanol’s price discount to gasoline was one factor that led to the higher summer blend rate in 2022,” the report stated. “Although ethanol prices have been high in 2022, they have been low relative to gasoline prices, which were at their highest since 2014 this summer because of low domestic inventories and constraints on refining capacity.”

“This new analysis from EIA confirms that American drivers gravitated toward lower-cost E15 and E85 this summer as war in Ukraine drove pump prices to record heights,” said RFA President and CEO Geoff Cooper. “The report also demonstrates that President Biden made the right call by issuing emergency waivers to allow the continued sales of E15 through the summer months. The Biden administration’s emergency waivers helped stave off fuel shortages and ensured consumers had uninterrupted access to E15, which was typically priced 20-40 cents per gallon lower than regular gasoline. EIA’s analysis also shows that consumption of lower-carbon renewable fuels increases, as expected, when the Renewable Fuel Standard and its RIN market mechanism are allowed to work as intended. This report comes at a critical time and underscores the importance of permanently removing the summertime barrier to E15 sales and implementing robust RFS volume requirements for 2023 and beyond.”

The report matches a recent ananlysis by RFA Chief Economist Scott Richman, which found that an additional 194 million gallons of E15 were sold during the summer as a result of the Biden administration’s RVP waivers, saving American consumers $57 million. In a column in the August issue of Ethanol Producer magazine, Cooper reflected that “At gas stations across the country, the cure for high prices isn’t more high prices—it’s ethanol. Refiners and blenders can lower gas prices for consumers simply by adding more ethanol, which has been $1–$1.50 per gallon cheaper than gasoline for much of the summer.”

EIA in its report stated that it raised its forecast for the average 2022 fuel ethanol blend rate to a record 10.4%. “This year’s annual average blend rate has been higher so far than in prior years, averaging 10.3% from March through July, compared with 10.1% for the same months in 2020 and 2019—the most recent year that EPA set RFS targets for ethanol at the current maximum. Following August’s average blend rate of 10.6%, the 2022 annual average blend rate increased to 10.4%. We forecast the annual average fuel ethanol blend rate to remain near current levels and end the year at 10.4%.”

EIA also noted that E85 sales have been on the rise. “From June–August 2022, U.S. production of E85 conventional gasoline was at record levels, averaging 21,000 b/d over those three months. In comparison, conventional E85 production averaged 15,000 b/d from June–August 2021 and was generally lower in all prior months. … In addition, E85 is becoming increasingly available. According to the U.S. Department of Energy’s Alternative Fuels Data Center, the United States had 4,331 E85 fueling stations as of January 2022, a 10% increase (385 stations) from the prior year.”

Read the original story here.

USDA: US Ethanol Exports Up in September

Ethanol Producer Magazine

Nov 7, 2022

The U.S. exported 100.4 million gallons of ethanol and 877,745 metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 3. Exports of both products were up from September 2021.

The 100.4 million gallons of ethanol exported in September was up from both the 76.99 million gallons exported the previous month and the 77.58 million gallons exported in September 2021.

The U.S. exported ethanol to approximately three dozen countries in September. Canada was the top destination for U.S. ethanol exports at 42.22 million gallons, followed by the Netherlands at 13.75 million gallons and South Korea at 12.02 million gallons.

The value of U.S. ethanol exports reached $280.59 million in September, up from both $229.43 million in August and $191.7 million in September of last year.

Total ethanol exports for the first nine months of 2022 reached 1.11 billion gallons at a value of $3.07 billion, compared to 872.5 million gallons exported during the same period of last year at a value of $1.79 billion.

The 877,745 metric tons of distillers grains exported in September was down when compared to the 981,020 metric tons exported in August, but up when compared to the 853,707 metric tons exported in September of last year.

The U.S. exported distillers grains to approximately 35 countries in September. Mexico was the top destination for U.S. distillers grains exports, at 187,583 metric tons, followed by Vietnam at 155,945 metric tons and South Korea at 57,554 metric tons.

The value of U.S. distillers grains exports reached $271.9 million in September, down from $317.05 million the previous month, but up from $216.61 million in September 2021.

The U.S. exported a total of 8.59 million metric tons of distillers grains during the first three quarters of 2022 at a value of $2.61 billion, compared to 8.56 million metric tons exported during the same period of 2021 at a value of $2.22 billion.

Additional data is available on the USDA FAS website.

Read the original story here.

Novozymes Reports 32% Increase in Bioenergy Sales in Q3

Ethanol Producer Magazine

Nov 3, 2022

Novozymes released third quarter financial results on Nov. 3, reporting that bioenergy sales were up 32 percent for the three-month period and 26 percent for the first nine months of the year. Overall sales were up 6 percent for the quarter, and 9 percent so far this year.

Novozymes said the strong performance for its bioenergy segment was driven by a broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value capture for producers in a favorable market environment.

The North American market experience strong developments overall, according to Novozymes, supported by increased U.S. ethanol production. Outside of North America, performance was also strong and driven by innovation, capacity expansion of corn-based ethanol production in Latin America and supported by growth in solutions for biodiesel production.

For the third quarter, Novozymes also reported that sales of enzymes used in second-generation biofuels also did well and contributed to growth during the three-month period.

Following strong performance for the first nine months of 2022, Novozymes has raised its guidance for the full year performance of the bioenergy segment. The company now expects growth in the high-teens, up from the mid-teens. That growth is expected to be driven by innovation and supported by increased U.S. ethanol production, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production along with enzyme sales for second-generation ethanol production.

The bioenergy segment accounted for 20 percent of Novozymes sales during the first nine months of 2022. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 29 percent, 24 percent, 15 percent and 12 percent, respectively.

A full copy of Novozymes’ third quarter report is available on the company’s website.

Read the original story here.

U.S. EPA Considering Expanding Midwest E15 Gasoline Sales - Sources

Nov 3, 2022

The EPA enforces a summertime ban on E15 over concerns it contributes to smog in hot weather, though research has since shown the 15% blend may not increase smog relative to the more common E10 sold year-round. E10 contains 10% ethanol.

In April, governors from major corn-producing Midwestern states including Iowa, Nebraska and Illinois requested that the EPA effectively lift the ban in their states. EPA head Michael Regan said in September the agency intends to act on the request before next summer.

Critics say allowing a different fuel grade in a region that is serviced by a select amount of pipelines can create shipping challenges.

The biofuel industry has faced legal hurdles in expanding U.S. E15 sales in the past.

A federal appeals court last year struck down an effort by former President Donald Trump's administration to allow year-round E15 sales, arguing it did not have the authority, a decision that had been sparked by a challenge from the refining industry.

Read the original story here.

Western Plains Pioneering Carbon Neutral Ethanol Production by Installing Whitefox ICE®-XL for Ground-breaking Energy Savings

Nov 8, 2022

Whitefox, the leading bioethanol membrane engineering innovator, is pleased to announce that Western Plains Energy LLC (Western Plains) will be the first US ethanol producer to install Whitefox ICE®-XL system at its 50 million gallons per year ethanol plant in Kansas.

Derek Peine, CEO at Western Plains Energy said: “Since beginning operations in 2004, Western Plains has always been on the forefront of innovation and an early adaptor of technologies that deliver step-changes in energy efficiency and operational yield. In our discussion with Whitefox we found that its ICE-XL integrated membrane solution would serve as a cornerstone in fully decarbonizing our production process. Our quest to achieve net-zero emissions is something that we are passionate about, and we are excited to partner with Whitefox to help us achieve our goal.”

Tony Short, Head of Global Sales at Whitefox said: “Whitefox ICE-XL is an evolution of the Whitefox ICE® which we have installations in 9 US ethanol plants. ICE-XL fully replaces existing molecular sieves and delivers exceptional operational benefits such as up to 50% capacity increase across distillation and dehydration and 50% steam reduction when fully integrated. Our team of process engineers worked closely with Derek and his team to design a solution that would bring exceptional energy recovery and carbon reductions to enable carbon neutral fuel production.”

Gillian Harrison, CEO at Whitefox said "I first met Derek in 2016 and it was inspiring to hear how focussed he was on reducing the carbon footprint of ethanol production. We began discussing how we could expand the Whitefox ICE solution to a full replacement of molecular sieves, given their propensity to crack, so it's exciting to now be working with Western Plains to install our first ICE-XL and support them on their journey to Net Zero ethanol."

Engineering phase 1 is already in progress and the project has an estimated start-up and commissioning date towards the end of 2023.

About Western Plains

Western Plains Energy, LLC. is renewable energy production company in Oakley, Kansas. The company converts regionally grown grain into sustainable, low-carbon products in the form of denatured ethanol and wet distillers grains. Western Plains Energy is committed to meeting the growing demand for domestically produced, sustainable renewable energy.

About Whitefox Technologies Limited

Whitefox specializes in technology development and innovation based on its proprietary membrane solutions. Whitefox’s Integrated Cartridge Efficiency (ICE) uses membrane-based cartridge technology which enables clients to produce ethanol and other chemicals to the highest market standards in the most energy and water efficient way. With a small carbon footprint, Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.

Read the original press release here.

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