In the News
May 7, 2018
By Mike Carr
Recently, Chet Thompson of American Fuel & Petrochemical Manufacturers (AFPM) testified before Congress and proposed a “fuel neutral” octane standard as a “potential replacement” for the Renewable Fuel Standard (RFS).
Octane is a fuel characteristic that allows engines to run more efficiently and without “knock.” Refiners use biofuels to meet octane standards today, so in theory, more octane means better engine performance, cleaner air and more biofuels.
But those of us who have been around for a while have heard this one before. Thirty years ago, the oil industry used the same strategy to avoid using biofuels. And consumers paid the price.
During the debates leading up to the Clean Air Act Amendments of 1990, Sens. Tom Daschle (D-S.D.) and Bob Dole (R-Kan.) led an effort to require oil companies to use more biofuels to improve the combustion efficiency of gasoline. The oil industry demanded a “fuel neutral” oxygen standard instead.
Biofuels contain high levels of oxygen, which also improves combustion. So, while an oxygen standard didn’t prescribe the means to improve environmental performance, farm state and environmentally minded senators agreed to Big Oil’s “fuel neutral” standard, in hopes of creating new market opportunities for biofuels and reducing air pollution.
Despite getting their way on substance, some oil state lawmakers continued to object to any standard at all. But The Washington Post noted that “the farmer-environmentalist alliance steamrolled” the opposition and won the vote 69 to 30. The issue was contentious, but the final package included an oxygen standard for reformulated gasoline. The Post predicted that ethanol “could more than double its market” as a result.
But a funny thing happened on the way from the field to the gas station. Instead of buying and blending renewable biofuels, the oil industry chose another oxygenate to meet their obligations: methyl tertiary butyl ether, or MTBE. The law was into effect from 1992 to 2005, and MTBE saturated more than 85 percent of the marketplace for oxygenates. It was the ultimate bait and switch.
MTBE is truly nasty stuff that leaches into groundwater. It is made by reforming natural gas and combining it with petroleum by-products at the refinery. In 2016, Exxon agreed to a $30 million settlement requiring them to provide clean water to three MTBE-contaminated schools in Massachusetts. Damages in some states reach into the hundreds of millions of dollars.
Congress did the right thing in 2005, effectively replacing the oxygen standard with the RFS as part of the Energy Policy Act of 2005. The RFS, together with MTBE liability concerns, essentially ended the use of the chemical in the United States. The quick transition from MTBE to ethanol has been a good outcome for public health, clean water and rural jobs.
Now, refiners are back, with the same old pitch. Incredibly, oil champions in Congress did little to hide their agenda in the wake of Thompson’s testimony. Rep. Gene Green (D-Texas), who represents three major refineries in his Texas district, said, “We're still producing MTBE in Texas for export market, but we can't use it to reformulate our gas. And now we have lots of natural gas that we could be using that for.”
Green’s district produces MTBE for export to Mexico. He made clear that the politicians working for Big Oil see the octane proposal as an opportunity to bring back petrochemical octane, and replace renewable fuels with dirty, polluting chemicals that contribute to climate change.
When Rep. Paul Tonko (D-N.Y.) asked Thompson if an octane standard could in fact be met with non-renewable “petrochemicals” from the refinery, Thompson replied “that is correct,” before assuring lawmakers that biofuels are in the best position to succeed under the new standard, just like they did in 1990.
Oil refiners are simply dusting off the old playbook — get renewable fuel supporters and lawmakers to buy into a “fuel neutral” performance standard, then use the “optionality” to get toxic petrochemicals back into the fuel supply.
That would serve the purpose of winning back market share for oil companies, but would be an absolute disaster for public health, the environment, and a renewable fuels industry driving job growth in the middle of the country. And it would destroy farm jobs in rural districts, including those belonging to some lawmakers who claim to be considering octane standards, like Rep. John Shimkus (R-Ill.).
To be sure, pursuing higher octane fuels is a good thing. Policies that result in higher efficiency engines, less pollution, lower emissions, and allow for higher blends of emissions-friendly biofuels are certainly worth considering.
But as we saw in the 1990s, and before that with leaded fuel, we shouldn’t count on the promise that the refineries will simply do the right thing for the environment or the consumer. The devil, especially when it comes to the oil industry, is in the details. Repealing the RFS for a toxic trojan horse would be a terrible idea.
Mike Carr is the executive director of New Energy America, an organization that promotes clean energy jobs in rural America. Previously, he served as principal deputy assistant secretary in the Office of Energy Efficiency and Renewable Energy at the Department of Energy.
Read the original article: Repeating History with Octane Biofuel Standards is a Huge Mistake
May 2, 2018
By Jarret Renshaw
The Trump administration has invited a group of U.S. senators to the White House early next week to discuss biofuels policy, the latest in a series of such meetings aimed at helping refiners cope with the Renewable Fuel Standard, according to two sources familiar with the matter.
The senators will include Republicans Chuck Grassley and Joni Ernst of corn state Iowa, along with Pat Toomey and Ted Cruz of refinery states Pennsylvania and Texas, according to the sources, who asked not to be named. The meeting will take place on Monday or Tuesday, they said.
White House spokeswoman Kelly Love did not immediately respond to a request for comment.
Biofuels groups have complained that the Trump administration is granting too many exemptions to the U.S. Renewable Fuel Standard (RFS), which requires refineries to mix increasing amounts of biofuels like corn-based ethanol into the nation’s fuel or to purchase credits from rivals that do. The law was intended to support farmers, reduce pollution, and cut petroleum imports. Exemptions were meant to benefit smaller refiners who may not be able to do the blending or purchase the credits.
While the 2005 regulation has created a multibillion-gallon market for ethanol, refiners complain the requirements now costs them hundreds of millions of dollars per year. They have urged the Trump administration to make changes, like capping the price of blending credits or shifting the blending obligation away from refiners entirely.
The ethanol industry has vehemently opposed those proposals, saying they would undermine demand for biofuels and also hurt farm income.
Numerous meetings on the topic since late last year appeared to end in deadlock. Last month, President Donald Trump announced he would consider expanding the times of year that high ethanol blend gasoline can be sold, a concession to the corn industry keen to boost its share of the motor fuel market.
At the same time, Trump’s Environmental Protection Agency (EPA) has been issuing more RFS exemptions to small refineries than the Obama administration did. While plants receiving the exemptions are small, their owners are some of the largest U.S. refiners, including Andeavor, which Marathon Petroleum hopes to acquire for $23 billion.
The surge in exemptions follows a federal court ruling in August that says the EPA was using guidelines in denying applications that were too strict. Biofuel groups say the EPA is using the court decision to justify gutting the RFS.
Prices of compliance credits have plummeted on news of the refinery exemptions.
The EPA also granted a waiver to a refinery owned by billionaire Carl Icahn, a former adviser to President Donald Trump, according to two industry sources briefed on the matter.
Oil majors ExxonMobil and Chevron have also applied for waivers at their small U.S. refineries.
A biofuels trade group asked a federal court on Tuesday to rule whether the EPA violated the law in granting a growing number of small refineries exemptions from renewable fuel laws, according to a court filing.
Read the original article: White House Sets Meeting With Senators on Biofuels Next Week: Sources
May 1, 2018
By the Renewable Fuels Association
The summer driving season kicks off in just a few weeks and the U.S. Energy Information Administration is already warning drivers that they are likely to see the highest gasoline prices in four years. Pump prices have already begun to increase, with the average retail price for regular gasoline reaching $2.85 per gallon last week, the highest since November 2014. However, ethanol is helping to offset higher prices, and 10 percent ethanol blends (E10) alone could save consumers at least $39 billion this year, according to an analysis released today by the Renewable Fuels Association.
The analysis of wholesale gasoline and ethanol price data shows that blending E10 has reduced wholesale gasoline prices by at least 27 cents per gallon, or 14 percent, compared to ethanol-free gasoline (E0). At current prices, E10 would save consumers $39 billion, or $306 per household, this year. The savings estimates are conservative, the analysis noted, since they exclude the additional aggregate cost savings that results from ethanol’s extension of the U.S. fuel supply and displacement of crude oil demand. The analysis points out that ethanol prices in the reference market of Omaha, Neb., have been equivalent to roughly half of the price for E0 gasoline so far this year.
The cost savings to consumers would be even greater if E15 (15 percent ethanol, 85 percent gasoline) were used in approved vehicles nationwide in place of E10, the analysis found. Specifically, the savings would be at least 34 cents per gallon, or 17 percent, for E15 consumers. Using E15 in approved vehicles would help consumers across the country save approximately $45 billion on gasoline, or $386 per household.
However, due to arcane regulatory barriers, E15 is prevented from being sold during the summer months (June 1-Sept. 15) in more than two-thirds of the nation’s gasoline market. According to the analysis, consumers who are blocked from accessing E15 are unnecessarily spending at least an extra 7 cents per gallon on gasoline. Nationally, that translates to $6 billion, or approximately $80 per household, of forgone savings.
“Gasoline prices are rising right along with the temperature. As Memorial Day approaches and the start of the summer driving season begins, consumers are expecting to pay more at the pump. But as this analysis shows, ethanol is already helping to keep gas prices in check,” said RFA President and CEO Bob Dinneen. “U.S. ethanol continues to be the lowest cost, highest octane fuel in the world, and it is clearly yielding savings to consumers. Those savings would be even more significant if EPA allowed year-round sales of E15 and other higher ethanol blends. There’s absolutely no reason why consumers should be denied access to greater fuel savings and a higher-octane option at the pump.”
To view a copy of the analysis, click here.
Read the original article: RFA: Ethanol Saves Consumers Money at the Pump
April 30, 2018
By Marc Heller
A group of pro-ethanol senators asked EPA Administrator Scott Pruitt today to speed the agency's approval of year-round sales of higher-ethanol fuel, reminding him of President Trump's recent comments in favor of the change.
"Allowing an open marketplace with more fuel options for consumers encourages competition and drives down consumer fuel costs," wrote Sen. Chuck Grassley (R-Iowa) and 17 other senators from both parties.
In addition, they said, greater availability of E15 fuel — which is 15 percent ethanol — would help farmers at a time of declining farm income and reduce air pollution compared with the 10 percent ethanol now sold in most gas stations.
In their letter, the senators asked Pruitt for a timeline to make the change through formal rulemaking, and they urged "immediate clarity" to allow sales of higher-ethanol blends in the interim.
"Doing this will fulfill the president's commitment to allow consumer's access to these fuels year-round, expand consumer choice, and eliminate confusion at the pump," they said.
Trump said earlier this month that the administration would allow E15 to be sold year-round, a process that requires an EPA waiver under so-called Reid vapor pressure rules. The RVP rules restrict certain types of fuel based on their ability to evaporate and contribute to ozone pollution, but the senators said the regulations are outdated.
Pruitt told farm broadcasters in an interview last week that EPA lawyers have been looking into the issue for months, trying to find the most solid legal footing to ease the restrictions. Sen. Ted Cruz (R-Texas) has referenced increased E15 availability as a possible negotiating tool in easing parts of the federal renewable fuel standard (E&E News PM, April 26).
The other senators signing the letter were Senate Agriculture Chairman Pat Roberts (R-Kan.) and Sens. Deb Fischer (R-Neb.), Heidi Heitkamp (D-N.D.), Amy Klobuchar (D-Minn.), Ben Sasse (R-Neb.), Mike Rounds (R-S.D.), Roy Blunt (R-Mo.), Dick Durbin (D-Ill.), Tammy Duckworth (D-Ill.), John Thune (R-S.D.), Joni Ernst (R-Iowa), Tammy Baldwin (D-Wis.), John Hoeven (R-N.D.), Tina Smith (D-Minn.), Joe Donnelly (D-Ind.), Claire McCaskill (D-Mo.) and Jerry Moran (R-Kan.).
Reprinted with permission from E&E News
Read the original article: Senators Press Pruitt to Allow Year-Round E15 Sales
Read the Senators' letter here.
April 25, 2018
Press Release
The National Biodiesel Board has been proactive to defend a strong Renewable Fuel Standard and fight against the Environmental Protection Agency's misguided actions. Today, former Senators Byron Dorgan (D-ND) and Jim Talent (R-MO), who played key roles in developing the RFS, called for Congress to investigate the EPA's recent waivers to major refiners and failure to follow the law.
“Who better to help clarify the intent of these small refinery exemptions than those who helped write the law in the first place? It is no surprise that they stand against the actions of the EPA,” said Kurt Kovarik, NBB's vice president of federal affairs. “The EPA’s decision to give handouts to large, profitable refiners has a direct and lasting negative impact on biodiesel producers, renderers and farmers. We will continue our push to return transparency and certainty to the marketplace.”
Thirteen years after working to enact the RFS, Senators Dorgan and Talent say EPA Administrator Scott Pruitt's use of waivers skirts the law and threatens to undermine the renewable fuels industry.
“Lawmakers from across the heartland have already demanded the EPA stop abusing these waivers, but Congress can and should do more. The public deserves real answers from Administrator Pruitt about handouts granted under cover of night,” said the two Senators.
“The waiver provisions established by Congress provide flexibility in dealing with the smallest refining companies, producing fewer than 75,000 barrels per day, and only in unique cases presenting disproportionate economic hardship. But the EPA has warped those provisions to grant tens of millions of dollars in regulatory handouts at the expense of farmers, biofuel workers, and American consumers.”
“The EPA’s actions not only undermine the intent of Congress, they undermine a renewable energy industry that supports hundreds of thousands of American jobs. Congress has a right and an obligation to investigate the approval process for each and every handout."
“The RFS remains the single most successful energy policy working to reduce America’s dependence on foreign oil, while delivering real economic and environmental benefits. It supports prosperity across rural America and brings cleaner, more affordable options to the fuel pump, including blends of American-made ethanol, biodiesel, and cellulosic biofuels. The President vowed time and again to support the RFS, and Congress should work with the White House to make certain that Administrator Pruitt is staying true to that promise in public and behind closed doors.”
The National Biodiesel Board submitted a Freedom of Information Act Request aimed at shedding light on small refiner exemptions requested and issued under the Renewable Fuel Standard. They also joined the American Soybean Association and the National Renderers Association urging President Trump to keep his promises to rural voters to uphold a strong RFS.
Press coverage has indicated the EPA has granted exemptions to several refineries for the 2016 and 2017 compliance years, including one of the nation’s largest. EPA has apparently granted Andeavor a hardship waiver for its three smallest refineries, while their profits last year were approximately $1.5 billion dollars. At least two other refineries with hundreds of millions of dollars in annual profits appear to have also been granted exemptions.
Congress has already taken notice. Last week, a bipartisan group of 13 Senators wrote Pruitt urging him to cease issuing hardship waivers. The letter also requests the following actions immediately:
Cease issuing any refinery waivers under the RFS;
Provide a full list of the refiners that have received a refinery waiver in 2016, 2017 or 2018;
Provide a detailed report to Congress describing EPA’s justification for providing the waivers and if the volumes were redistributed to other obligated parties; and
Describe EPA’s commitment and plan to consider future small refinery waivers only during the annual RVO rulemaking process and commitment to provide full notice and opportunity for comment on any future small refinery waiver requests.
“Granting secretive ‘hardship’ waivers to some of the nation’s most profitable petroleum giants undermines the law and destroys demand for homegrown biofuels,” said Kovarik. “We applaud the efforts of the Senators to shed light on EPA’s actions.”
The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. The RFS originated in a bi-partisan Congress with the Energy Policy Act of 2005 and was expanded and extended by the Energy Independence and Security Act of 2007.
The National Biodiesel Board is the U.S. trade association representing the entire biodiesel and renewable diesel value chains, including producers, feedstock suppliers and fuel distributors.
Byron Dorgan is a North Dakota Democrat who served in the U.S. Senate for 18 years. He sat on the Senate Energy Committee and was one of the original authors of the RFS. He is now a senior policy adviser at Arent Fox, whose clients include the National Biodiesel Board.
Jim Talent is a Missouri Republican who served in the U.S. Senate from 2002 to 2007. He was a co-author of the RFS and currently serves as Chair of Americans for Energy Security and Innovation (AESI), which supports homegrown, renewable energy to reduce our dependence on foreign oil.
Read the original press release: Former Senators, Biofuels Champions: EPA Actions Contrary to Law/Congressional Intent
April 26, 2018
By Anna-Lisa Laca
Over the past year and a half, Environmental Protection Agency (EPA) administrator Scott Pruitt has issued Renewable Fuels Standard (RFS) waivers equivalent to more than 1.6 billion gallons of ethanol (according to the Renewable Fuels Association and their analysis of EPA data) , a move Agriculture Secretary Sonny Perdue told the Senate Ag Committee is “direct demand destruction.”
According to Pro Farmer policy analyst Jim Wiesemeyer, Secretary Perdue fielded Congressional questions on the RFS during his hearing before the Senate Ag Committee on Tuesday.
“On the RFS, Sen. Joni Ernst (R-Iowa) pressed Perdue on the EPA's recent move to provide waivers to some smaller refiners for obligations under the law,” he said. “Perdue said as of his last check, USDA was aware that over one billion gallons of biofuel waivers had been granted.”
Wiesemeyer said Ernst followed up by asking Perdue how he plans to “ensure the EPA is not deliberately circumventing the RFS," to which he said he didn’t have “any kind of hammer” to force Pruitt’s hand on the issue. Perdue said he intends to use “the power of persuasion” to help them understand how the waivers have undermined the renewable volume obligations issued last fall.
"Our farmers and biofuel producers are very concerned," Perdue said yesterday.
Iowa farmer Tim Richter told AgriTalk host Chip Flory the volume of waivers that have been granted so far are a “huge deal” during Wednesday’s farmer forum.
“The RFS holds feet to the fire for big oil to blend a renewable product,” he said. “Without that we know we’re small fish in a big ocean when it comes to fuel.”
According to Richter, there are hardship waivers included in the RFS. He served as president of the National Corn Growers Association in 2008 when the RFS was first implemented. Still, the quantity of waivers being granted by Administrator Pruitt concerns him.
“We really are at risk with all the waivers being granted,” he said.
During his hearing on Tuesday, Perdue also mentioned president Trump is in support of year-round sale of E15 gasoline blends.
“The change remains on hold as the EPA studies the issue but the decision is ultimately the president’s,” Wiesmeyer said.
Read the original article: Perdue Calls RFS Waivers ‘Direct Demand Destruction’
April 25, 2018
By Syngenta
As ethanol plants seek new ways to be more competitive, advances in corn kernel fiber to ethanol processes have shown significant promise in adding value through the diversification of product streams.
“Over the last decade, existing dry grind ethanol plants have strived to extract value out of the corn kernel through maximizing production and capture of ethanol, carbon dioxide, dried distillers grains (DDG), and oil,” said Miloud Araba, head, technical services for Enogen at Syngenta. “Cellerate process technology converts corn kernel fiber into a diversified income stream and has been producing D3 RIN-qualifying cellulosic ethanol on a commercial scale at Quad County Corn Processors (QCCP) since 2014. QCCP has generated nearly 40 percent of all D3 ethanol RINs produced over the past three and one-half years.”
Performance results achieved at QCCP to date through combining Cellerate with Enogen corn include: a 6 percent yield increase plus a 20 percent throughput increase combined for a 26 percent increase in total ethanol production; higher protein feed co-products; and improved oil yield.
Together, Cellerate and Enogen corn can help deliver notable benefits to ethanol plants beyond what can be achieved through either technology alone—including increased throughput and yield and a notable reduction in natural gas, electricity and water usage.
"Cellerate is a diverse process technology which adds value to protein, increases distillers corn oil production, creates cellulosic ethanol and produces low carbon intense ethanol, all while allowing additional throughput from a dry grind ethanol facility," said QCCP CEO Delayne Johnson.
With an approved D3 RINs EPA pathway for over three years, Cellerate process technology enables ethanol producers to leverage their existing infrastructure and significantly increase total production by using pre-existing assets such as: feedstock receiving and storage; product separation; and final product storage.
“Cellerate process technology provides dry grind ethanol producers the opportunity to move away from low value commodity fuels and dried distillers grains (DDG) and into high value D3 RINs and DDG markets,” said Jeff Oestmann, head, bio-fuels operations for Enogen at Syngenta. “To help make the benefits of Cellerate’s diverse value stream more broadly available, Syngenta is working with a number of industry leaders including Purina, QCCP and Fagen Inc., as well as another top engineering firm in the ethanol space.”
In an upcoming webinar hosted by Ethanol Producer Magazine at 2 p.m. Central on Thursday, April 26, Syngenta and QCCP will discuss how dry grind ethanol plants can leverage corn kernel fiber to be more competitive. Register here.
To inquire about incorporating Cellerate process technology into a dry grind ethanol plant, contact Jeff Oestmann at This email address is being protected from spambots. You need JavaScript enabled to view it.. For more information about Cellerate enhanced by Enogen corn, visit www.Enogen.com.
Read the original article: Syngenta: Cellerate Technology Can Benefit Ethanol Producers
April 20, 2018
By Julie Harker
The ranking members of the House Ag and House Energy committees are asking President Trump to ensure no more RFS waivers are granted until transparency and accountability of the waiver program is improved.
Congressmen Collin Peterson of Minnesota and Frank Pallone of New Jersey say in their letter to Trump they are deeply concerned that EPA Administrator Scott Pruitt is granting waivers to large oil refiners which is not the intent of the Renewable Fuels Standard program.
Peterson and Pallone say misuse of the exemption to reduce renewable fuels volumes “undermines the goal of the RFS, creates uncertainty and economic hardship in the ag community, and gives unfair advantage” to certain facilities in the refining sector.
They say Pruitt testified at his confirmation hearing that the waiver authority should be used judiciously in the way Congress intended.
Read the full letter here.
Read the original article: Peterson Co-Signs RFS Waiver Letter to Trump
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April 23, 2018
By Stanford University
Although considered critical to avoiding catastrophic global warming, the feasibility of removing carbon dioxide from the atmosphere and storing it underground -- known as negative emissions -- has been in question.
"There's really no scenario that meets the world's climate goals without negative emissions," said Katharine Mach, a senior research scientist at Stanford's School of Earth, Energy and Environmental Sciences. "But most technologies for carbon removal are immature, largely unavailable or expensive."
But researchers at Stanford and other institutions have found new hope for cost-effective carbon capture and sequestration (CCS). Their study, published April 23 in Proceedings of the National Academy of Sciences, runs the numbers on different options for removing carbon dioxide from the atmosphere in the U.S. and finds opportunities where it is not only commercially feasible with existing technology, but profitable.
Plants do the work
The most widely discussed strategy for removing carbon dioxide from the atmosphere involves growing plants, which absorb CO2, as a first step. Those plants can then be processed to produce energy, and any resulting CO2 emissions from that energy production would be captured and stored underground.
While it seems straightforward, these technologies -- known as bioenergy with carbon capture and sequestration, or BECCS -- have not been fully developed and many areas don't have geology that's suitable for storing CO2. What's more, pipelines would need to be built to take CO2 from bioenergy plants to areas suitable for storage. There are also serious questions about how BECCS would scale globally and compete with plants grown for food production or impact ecosystems and biodiversity.
However, the group found that one type of BECCS technology could work immediately for U.S. ethanol producers. What's more, given current and predicted future financial incentives, the approach could even turn a profit.
"We found that between tax credits for CCS and upcoming financial incentives from low-carbon fuel standards, CCS is an untapped financial opportunity for ethanol producers across the U.S.," said Daniel Sanchez, a postdoctoral scholar with the Carnegie Institution for Science and lead author on the paper.
The United States is the largest producer of ethanol in the world, producing 15.8 billion gallons in 2017. Ethanol is made by fermenting biomass such as corn, which produces a high-purity CO2 by-product that is easier and cheaper to capture, compress and inject underground than other emitted sources of CO2. Right now, these emissions are largely vented to the atmosphere in the process of making ethanol.
"Negative emissions at biorefineries is commercially ready and affordable. It offers a compelling way to build the real-world experience we need to develop future BECCS technologies," said Mach.
Financial incentives
The researchers estimate that 60 percent of all CO2 emitted annually through the production of ethanol at the country's 216 biofuel plants (about 1 percent of all CO2 emissions from the U.S.) could be captured at low cost, under $25 per metric ton of CO2.
Further, if credits for captured CO2 were set at $60 per metric ton, it could incentivize sequestration of 30 million metric tons of CO2 each year that are otherwise vented into the atmosphere -- equivalent to emissions from powering 3.2 million homes for one year -- and pay for the construction of 4,300 miles of pipeline infrastructure needed to transport the CO2 for storage at appropriate sites across the country.
These incentives are in line with new tax credits included in the Bipartisan Budget Act of 2018 signed by the president in February. The bill amended section 45Q of the tax code so that power plants or CO2-emitting facilities are eligible for tax credits for captured CO2 for up to 12 years.
"There are many ways to incentivize and unleash negative emissions technologies, one of which this administration and Congress may have just put into place," said Mach.
Another financial incentive comes in the form of low-carbon fuel standards, such as those implemented in Oregon, California and British Columbia. It works by giving tradeable credits for fuels that exceed the standard and deficits to those who don't.
Right now, accounting for CCS isn't included in the standards, but on April 27, California will consider updating its rules to include new protocols that would quantify the value of carbon removal in the fuel production process. If adopted, fuel producers could collect more credits by selling lower-carbon ethanol in California.
"This is an opportunity not only for biofuel producers to make profits, but also for CCS technology to be more widely piloted and developed. This is an essential first step if we're going to deploy carbon removal at levels necessary to keep dangerous climate change in check," said Sanchez.
Read the original article: Carbon Capture Could Be a Financial Opportunity for US Biofuels
April 17, 2018
By Whitefox Technologies Ltd
Whitefox Technologies, a leading solutions provider for ethanol and other alcohol production processes, is proud to announce Chippewa Valley Ethanol Company is to install a Whitefox ICE membrane dehydration system at its plant in Benson, Minnesota. This is Whitefox’s second agreement this year and its first installation in the state of Minnesota.
Whitefox ICE is recognized as a proven solution to improve molecular sieve and distillation efficiency, helping to reduce energy usage and boost production capacity for the U.S. ethanol industry. The Whitefox ICE system treats existing recycle streams to free up distillation-dehydration capacity, reduce energy by 1,000-2,500 Btu per gallon, cut carbon emissions and cooling demands, and can increase a plant’s capacity by 20 percent or more depending on the system design.
Chad Friese, general manager at Chippewa Valley Ethanol Company, said, “We are enthusiastic about the operational flexibility the Whitefox ICE membrane system will give us to adjust our product demand cycles and growth in certain markets. With the installation of the Whitefox ICE membrane system, we expect to increase our ethanol production capacity by 7.5 million gallons per year, an increase of 15 percent or more. This will increase our margins and overall efficiency both during regular uptime and product changeover cycles.”
Gillian Harrison, Whitefox CEO, said, “We are proud to announce our latest contract for Whitefox ICE bolt-on membrane installations in the U.S. This project with CVEC will be yet another step towards helping ethanol plants to improve their profitability and minimize waste and environmental impact by reducing natural gas, power and cooling water usage while increasing ethanol production. We look forward to announcing additional contracts in the weeks ahead as we continue to grow in the U.S.”
“CVEC is a one-of-a-kind ethanol producer, in terms of process complexity and product flexibility. We look forward to a successful project completion and start-up with this long-time innovator in the ethanol industry,” stated Paul Kamp, Whitefox VP of Business Development.
Whitefox’s Integrated Cartridge Efficiency (Whitefox ICE) is a membrane-based dehydration technology with a small footprint. It enables producers to reduce energy costs and improve carbon intensity (CI) scores, reduce cooling water costs year-round and reduce operation & maintenance costs by simplifying production, all while increasing revenues from additional ethanol capacity. Whitefox ICE can be integrated into existing corn ethanol production plants with minimal disruption. Whitefox’s membrane technology can equally be included as a technology upgrade in new greenfield plants.
Read the original story here: CVEC To Install Whitefox ICE Bolt-On Membrane Dehydration System
April 11, 2018
The Trump administration is considering allowing the sale of a higher ethanol fuel blend in the summer, a source familiar with the issue said, a move that would placate corn growers worried about the future of U.S. biofuels policy.
President Donald Trump recently met with the heads of the Environmental Protection Agency and the U.S. Department of Agriculture to discuss ways to make the Renewable Fuel Standard less expensive to the oil industry without undercutting demand for ethanol.
The RFS requires refiners to add increasing volumes of biofuels like corn-based ethanol into the nation’s fuel supply each year which is a boon to farmers but a headache for refining companies that must either blend the fuels themselves or purchase credits from those who do.
Trump has tried in vain over the past several months to broker a deal between “Big Oil” and “Big Corn” over the issue, and has faced mounting pressure from lawmakers in the Midwest who are concerned that he will weaken domestic demand for ethanol at a time farmers are already facing a potential trade war with China that could hurt export demand for corn and soybeans.
Sources had told Reuters this week that Trump was temporarily suspending his consideration of a refining industry-backed proposal to cap prices for blending credits, an idea that the biofuels industry has opposed as damaging to farmers.
But in the meantime, the administration is considering moving forward with plans to allow for the ethanol industry’s long sought waiver to sell gasoline containing 15 percent ethanol in the summer, instead of the usual 10 percent blend, the source familiar with the issue told Reuters on Wednesday.
The higher ethanol blend, called E15, is currently banned by the Environmental Protection Agency due to concerns it contributes to smog on hot days, a worry that biofuels advocates say is baseless. If done soon, the waiver could be in effect in time for the 2018 summer driving season.
EPA spokeswoman Liz Bowman did not immediately respond to a request for comment. White House spokeswoman Kelly Love did not comment on the E15 waiver but said that during Trump’s meeting Monday he “instructed his Cabinet to continue to explore options that protect American farmers and America’s refinery workers.”
Biofuels proponents have heaped pressure on the White House after reports that the EPA was granting dozens of small refineries exemptions from the RFS to help them avoid the costs of compliance, something the ethanol industry says will weaken demand for their product.
On Monday, Trump acknowledged farmers may bear the brunt of the economic harm if China retaliates against Washington’s threat of tariffs, noting that “we’ll make it up to them”. Many U.S. farmers are battling debt after years of excess global supplies and depressed prices.
“We need some good news out here,” said Monte Shaw, the Executive Director of the Iowa Renewable Fuels Association.
“The best news (Trump) could give us right now is year-round sales of E15,” he said.
Read the original story here: Trump Administration Weighs High-Ethanol Fuel Waiver To Placate Farmers
April 9, 2018
By Jarrett Renshaw and Chris Prentice
Five Republican senators on Monday called on President Donald Trump to temporarily halt the use of biofuels policy waivers for small oil refineries, after reports the Environmental Protection Agency had issued a recent wave of such exemptions.
The group of lawmakers, which includes Senators Charles Grassley and Joni Ernst of Iowa and John Thune of South Dakota, said the EPA waivers are “undermining” the U.S. Renewable Fuel Standard, a law that requires biofuels like ethanol to be added to the nation’s fuel, which Trump has said he supports.
“We therefore urge you to call on the EPA to cease all RFS waiver action until the agency’s administration of the RFS can proceed in a more transparent and impartial manner,” the senators said in a letter dated April 9.
The request comes as Trump is scheduled to meet with EPA head Scott Pruitt and Secretary of Agriculture Sonny Perdue on the issue later on Monday.
An EPA source told Reuters last week that the agency had issued 25 small refinery exemptions, relieving the plants of their requirements to blend biofuels last year.
Reuters also reported that Andeavor, one of the country’s largest refiners, also received EPA exemptions from the biofuels law for three of its smallest refineries.
In the past, the EPA has issued between six and eight waivers from the RFS per year to small refining operations of less than 75,000 barrels per day that can demonstrate they are struggling financially to comply, according to a former official familiar with the waiver program under past administrations.
But refiners have applied for the waivers in larger numbers after a federal appeals court ruling last year that said the EPA must expand the guidelines for approving them.
They have also been encouraged to apply by the Trump administration’s recent efforts to broker a deal between the oil and corn industries to reduce the costs of the RFS, industry sources said. Those talks have not yielded a deal.
“The EPA is using its small refinery waiver in an unprecedented manner to benefit some of the largest refineries in the nation, including Andeavor, which posted profits of approximately $1.5 billion last year,” the senators wrote.
White House spokeswoman Kelly Love did not immediately respond to a request for comment.
The RFS requires refiners to blend biofuels, or purchase blending credits from other companies - a policy intended to help farmers, and cut pollution and fuel imports.
Read the full letter here.
Read the original story: Senators Ask Trump to Suspend EPA's Use of Biofuel Waivers
March 30, 2018
By Jody Issackson
Highwater Ethanol is applying to increase its ethanol production with the Environmental Protection Agency and the Minnesota Pollution Control Agency.
Highwater Ethanol CEO Brian Kletscher said his company hopes to make the best use of equipment and resources to increase shareholder profits. He said the number one reason for increasing production is to produce more renewable fuel for consumers to use in their new flex fuel vehicles. Kletscher also said that will help decrease the country’s dependency on imported crude oil and finished gasoline.
He said the company will consume another 2 million bushels of corn which will be good for the local farmers. Kletscher said that the majority of the grain Highwater uses in its processes comes from a 25-mile radius including farmers and elevators.
“It’s not going to be a huge increase, but as long as margins are profitable, it will be an increase,” Kletscher said. “Anything we can do to increase ROI (return on investment), we owe it to our shareholders to do it.”
The CEO and his staff have calculated that with their current facility and production equipment, they could increase their production form 59.5 million gallons of ethanol per year to 70.2.
“We looked at how much our plant can handle by an engineering review and calculated how much our plant can produce with the current equipment,” Kletscher said Wednesday.
One of the reasons Highwater Ethanol would not have to add equipment or storage to make this leap in production is because the company had already added a 600,000-bushel grain bin which was completed in August of 2017. This brought their storage capacity up to 1.8 million bushels.
The company had also added new computerized systems for handling grain and distillers’ grains.
The increase in production would increase the volume of pollutants, which requires the involvement of the Minnesota Pollution Control Agency and federal Environmental Protection Agency (EPA). The EPA requires Highwater Ethanol to monitor its air emissions and calculate how much more will be produced with the increase in production, he said.
“We’ve been working with them since mid-January on this permit and expect to hear back in late summer or early fall,” he said.
The application itself was started in May of 2017 and the EPA was able to start looking at it in January.
“We do a modeling of the project for them,” Kletscher said. “They may require us to measure the emissions. However, we do those already. We anticipate very minimal increase in emissions.”
At the recent annual meeting, Board Chair David Moldan announced fiscal year 2017 (ending Oct. 31) was “another successful year.”
The company took in 20.3 million bushels of corn and sold 59.4 million gallons of ethanol. Kletscher explained Wednesday the company also sells byproducts of its process. Dried distiller grains (DDGs) are sold for swine and poultry feed, while modified distillers grains (MDG) are sold to feed beef cattle.
“They serve as protein and energy sources for livestock,” he said.
Ethanol production for FY 2017 was 200,000 gallons more than the previous year while the corn used was 600,000 bushels less.
“That allows us improved efficiencies, and the potential for a more profitable year is definitely there,” the CEO said.
The net income was just over $3.5 million, an increase from the $522,668 margin in FY 2016, the company reported to its shareholders.
Total sales for last year were $100,225,143. The previous year was just under $99 million. This profit was due in part in the 10 cent per bushel decrease in the cost of corn, going from $3.30 in 2016 to $3.20 in 2017.
Distributions of $345 a unit were paid to shareholders in December for a total distribution of $1,660,657.
Going forward, Kletscher said tariffs on imports could create a problem, but he is optimistic.
“Tariffs could potentially hurt exports,” he said. “We’ve reviewed that any tariff can have an impact on ethanol exports. Currently China has a 30 percent tariff on our exports and has talked about adding an additional 15 percent on top of that. We’re hoping our other foreign markets will pick up and offset the drop to China.”
Kletscher is anticipating the permits to increase ethanol production at Highwater Ethanol to go through by fall and they will be able to meet an increasing demand for the renewable resource as the flex fuel vehicles that use it catch on in the metro areas as well as the rural areas.
Read the original article: Highwater Ethanol Applying for Boosting Production
March 26, 2018
By Erin Voegele
The USDA has released a new report that measures economic growth, job creation and household income from biofuel and bioenergy production, along with future growth in renewable chemicals and biobased products.
The report, titled “Indicators of the U.S. Biobased Economy,” shows that the biobased economy is playing an increasingly important role in the U.S. economy. “Through innovations in renewable energies and the emergence of a new generation of biobased products, the sectors that drive the biobased economy are providing job creation and economic growth,” the report states.
According to the USDA, the report aims to understand and analyze trends in the biobased economy by comparing 2011 and 2016 data.
The data shows significant increases in the production of liquid biofuels, with U.S. ethanol production increasing from 175 million gallons in 1980 to more than 14.7 billion gallons in 2015. The number of ethanol plants reached 199 in 2016, with three facilities under construction and the industry accounting for more than 270,000 U.S. jobs.
Biodiesel production also grew exponentially, increasing from 343 million gallons in 2010 to 1.26 billion gallons in 2015. From 2005 to 2012, soybean use for biodiesel increased from 670 million pounds to 4.1 billion pounds.
The production of solid biofuels has also increased significantly. The report states that “wood pellets manufactured primarily in the Southeastern United States have become an important component of the bioenergy sector.” The U.S has established itself as the world’s largest exporter of wood pellets, with more than 4.6 million metric tons exported in 2016.
Growth has also occurred in the production of renewable chemicals and biobased products. The report states that the number of renewable chemicals and biobased products certified under the USDA’s BioPreferred program has increased from 1,800 in 2014 to 2,900 in 2016. The number of overall biobased products in the U.S. marketplace has increased from approximately 17,000 in 2008 to 40,000 in 2014. An estimated 4.22 million jobs were attributed to the biobased products industry in 2014. In addition, the report estimates the value-added contribution to the U.S. economy from the U.S. biobased products industry was $393 billion in 2014.
The Biotechnology Innovation Organization has spoken out to welcome the report. “The biobased economy is approaching a tipping point in its growth and maturation,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section. “The economic impact is evident.
“BIO calculates that the global economic value of the biobased economy—including industrial biotechnology, renewable chemicals and polymers, biofuels, enzymes and biobased materials—is $355.28 billion,” he continued. “Looking at the new USDA Indicators report and other sources, we estimate that the United States generates 58 percent of the global value of biobased manufacturing, or more than $205 billion. And that economic activity supports employment for 1.66 million U.S. workers.
“The growth of the biobased economy has been supported by good federal policy that strengthens the agricultural sector and rural America,” Erickson said. “For instance, Farm Bill energy title programs have compiled a record of success that deserves to be continued. We look forward to working with USDA and Congress to build on that success and reauthorize the programs.”
A full copy of the report can be downloaded from the USDA website.
Read the original article: USDA Report Shows Impact of US Biobased Economy
LITTLE FALLS, Minn., March 27, 2018 - Green Biologics, Inc. announced that it has agreed to supply their patented GreenFlame® bio-based charcoal lighter fluid formulation exclusively to Kingsford® Charcoal, to be marketed under a new brand: EcoLight™. The licensing agreement builds on the successful 2017 introduction of GreenFlame, a natural USDA BioPreferred® certified, clean-burning charcoal lighter fluid based on Green Biologics' proprietary advanced fermentation process.
Kingsford® EcoLight™ Powered by GreenFlame® charcoal lighter fluid will be available at retailers across the country starting later this month, with intentions for continued expansion throughout 2018 and beyond.
"As the leading charcoal brand and wholly owned subsidiary of The Clorox Company, a champion for sustainability, we found Kingsford to be an excellent partner for the GreenFlame charcoal lighter fluid formulation," said David Anderson, global vice president of marketing, Green Biologics. "Their strong branding, extensive retail presence, and distribution capabilities will quickly introduce a large number of consumers to a high-performance, bio-based alternative to petro-based charcoal lighter fluid. We see this as a critical first step toward an exciting future of renewable product collaborations."
"Working with Green Biologics to introduce this product was a logical addition to our existing line, showcasing Kingsford's commitment to launching products consistent with evolving consumer trends," said Lauren Kahn, director of marketing at Kingsford. "The key to EcoLight's success lies in its superior performance. Unlike other natural charcoal lighter fluids on the market, there are no trade-offs in performance here. EcoLight lights quickly, stays lit and works every time."
About Green Biologics
Green Biologics Ltd (GBL) is a renewable specialty chemicals company based in Abingdon, England with a wholly owned U.S. operating company, Green Biologics Inc., based in Little Falls, Minn. GBL's Clostridium fermentation platform converts a wide range of sustainable feedstocks into high performance green chemicals such as n-butanol, acetone, and through chemical synthesis, derivatives of n-butanol and acetone used by a growing global consumer and industrial products customer base in numerous markets including Coatings, Pharmaceuticals, Personal Care, Consumer Fuels and Cosmetics. The platform combines advanced high productivity fermentation with superior-performing proprietary Clostridium microbial biocatalysts and synthetic chemistry to produce a pipeline of high value renewable specialty chemicals with optimal performance in downstream formulations. For more information, visit www.greenbiologics.com
March 23, 2018
By Mark Steil
There's been a lot of hand-wringing in farm circles about trade with China for the past two years, ever since presidential candidate Donald Trump criticized the Asian economic giant with comments like this: "China is ripping us off like nobody has ever seen," Trump said, on the campaign trail.
But fears over a possible trade war with China moved much closer to reality this week.
Words have become action as now-President Trump announced proposed tariffs on Chinese products sold in the U.S.
Minnesota sells about a billion and a half dollars' worth of agricultural products to China each year — and China's list of proposed tariffs against U.S. products includes several that are important to farmers across the state.
"We're poking the bear if you will," said University of Minnesota grain market economist Ed Usset.
China responded to the U.S. tariff proposal by announcing import taxes of its own. And if the back-and-forth snowballs into a full-scale trade war, many industries could be affected.
Agriculture is a big one.
"There's a lot at stake here for American farmers, Minnesota farmers," said Usset.
China is taking a two-step approach in its retaliatory tariffs.
The first group of U.S. products to be hit includes ethanol, which is threatened with a possible 15 percent Chinese import tax. That worries Minnesota's ethanol CEOs, including Randall Doyal of the Al-Corn Clean Fuel ethanol plant in Claremont.
"We are depending on being able to export our production to the world," Doyal said.
China is a part of that overseas market. It has enacted ethanol tariffs in the past, so U.S. sales there have been up and down.
But as recently as 2016, sales to China accounted for about 20 percent of U.S. ethanol exports.
Doyal said if China follows through on its tariff threat, it will hurt U.S. sales there. And that will hurt Minnesota farmers who sell corn to ethanol plants around the state. Doyal also worries that a sour export market will hurt his plant.
"It certainly will put a damper on us," he said. "We're coming out of an expansion, we've got a lot of debt. And I don't like the thought that we're looking at markets that are going to be returning less."
State pork producers are looking at a similar scenario.
Pork is in the second group of products facing a 25 percent tariff if the U.S.-China trade dispute escalates. China is the second-largest market for U.S. pork. Minnesota Pork Producers Association President Greg Boerboom said hog farmers in Minnesota and across the country will feel the impact of a trade war.
"If something happened that we would lose the China market, which is our No. 2 market, that'd be a devastating impact on both hog producers and the rural economy," said Boerboom.
But Boerboom, a self-described optimist, still believes the two nations can pull back from the brink, and avoid an escalating series of trade barriers and taxes that could hurt both countries.
"Nothing has been finalized yet," said Boerboom. "It's still a threat on both sides. So we're hoping that they can negotiate and actually resolve the situation before any tariffs or retaliation would take place."
That would also be very good news for Minnesota's soybean farmers — China has not yet proposed a soybean tariff. But if the trade fight expands and soybeans are pulled into the retaliatory actions, Minnesota farmers would take their biggest hit of all: Soybeans are Minnesota's top farm export — and China is the state's biggest customer.
Read the original story: Minnesota Ag Has Much to Lose in U.S.-China Trade Spat