In the News
Dec 13, 2021
The Biden administration has signaled its intent to publish a proposed rule setting Renewable Fuel Standard renewable volume obligations (RVOs) for 2023 and beyond next spring. A variety of other rulemakings impacting biofuel producers are also scheduled to be taken up by federal agencies in the near-term, including those related to RFS fuel pathways, the Biopreferred program, and permitting for certain corn ethanol plants.
Abstracts of the expected rulemakings are included in the White House Office of Management and Budget’s Fall 2021 Unified Agenda of Regulatory and Deregulatory Actions, published on Dec. 10.
The OMB’s unified fall agenda provides expected timelines for several rulemakings already in progress, including the EPA’s recently released proposed rules to set 2020, 2021 and 2022 RVOs and extend certain RFS compliance reporting deadlines, and the agency’s ongoing rulemaking to revise greenhouse gas (GHG) emissions standards for model year (MY) 2023 and later light-duty vehicles.
The EPA released a proposed rule to revise 2020 RFS RVOs and set new RVOs for 2021 and 2022 on Dec. 7. The proposed rule also updates and re-proposes a provision originally included in the long-stalled Renewables Enhancement and Growth Support rule to allow for the production, transfer and use of biointermediates to generate qualifying fuel under the RFS program, and includes a variety of other provisions updating the RFS program. A public comment period on the rule is open through Feb. 4. The OMB’s unified agenda indicates a final rule could be released as soon as February 2022.
The unified agenda also addresses the proposed rule released by EPA in mid-November that aims to further delay certain RFS compliance and attest engagement report deadlines and change the way the agency sets those deadlines moving forward, but does not provide an expected date for publication of a final rule.
The EPA’s final rule to revise GHG emissions standards for MY 2023 and later vehicles is currently expected to be released before the end of the year, according to the OMB. Representatives of the ethanol industry have urged the EPA to address GHG reductions made possible through the use of high-octane, low-carbon renewable fuels as part of the rulemaking.
According to the 2021 fall unified agenda, the EPA is currently expected to issue a notice of proposed rulemaking for the post-2022 RFS in May 2022. Statutory provisions of the Clean Air Act governing the RFS program provides target RVOs only through 2022. Starting in 2023, the EPA must set those volumes based on an analysis of factors specified in statute. The upcoming rulemaking will establish volume requirements beginning in 2023, according to the OMB. A final rule is currently expected to be issued in December 2022.
The unified agenda also indicates that the EPA plans to issue a proposed rule in January 2022 focused on RFS canola oil pathways for renewable diesel, jet fuel, naphtha and liquid propane gas (LPG). An abstract published by the OMB states that the proposed rule will provide an opportunity to comment on an analysis of lifecycle GHGs associated with biofuels produced from canola oil via a hydrotreating process. A final rule is currently expected to be published in July 2022.
The EPA is also set to reconsider prevention of significant deterioration (PSD), nonattainment new source review, and Title V treatment of corn milling facilities under the “major emitting facility” definition, according to the unified agenda. The OMB said the rulemaking would convene a proceeding to reconsider portions of a final rule issued in May 2007 that applies to nonattainment areas. A notice of proposed rulemaking is expected to be released in February. The OMB provided no estimate of when a final rule could be issued.
The USDA is also expected to issue a final rule on its Biobased Markets Program, also referred to as the BIopreferred program, in June 2022. The rulemaking will update the program to reflect provisions included in the 2018 Farm Bill.
Read the original story here.
Dec 8, 2021
U.S. fuel ethanol production expanded by more than 5 percent the week ending Dec. 3, according to data released by the U.S. Energy Information Administration on Dec. 8. Fuel ethanol stocks were up approximately 1 percent.
U.S. ethanol production averaged 1.09 million barrels per day the week ending Dec. 3, up 55,000 barrels per day when compared to the 1.035 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. 3 was up 99,000 barrels per day.
Weekly ending stocks for fuel ethanol expanded to 20.464 million barrels the week ending Dec. 3, up 163,000 barrels per day when compared to the 20.301 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 3 were down 1.619 million barrels.
Read the original story here.
To facilitate year-round sales of E15 nationwide and remove arcane barriers to innovation and consumer choice in the retail fuel marketplace, six national farm and biofuel organizations have asked the U.S. Environmental Protection Agency to enact regulations requiring lower-volatility conventional gasoline blendstock in the summertime. This would result in lower tailpipe and evaporative emissions during the summer ozone control season and improve air quality.
In a letter to EPA Administrator Michael Regan, the Renewable Fuels Association, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union, and National Sorghum Producers said reducing the volatility of gasoline by just 1 pound per square inch (psi) would yield significant environmental benefits.
Regarding air quality, the six organizations referenced and attached a new study using EPA modeling tools, showing that reducing the vapor pressure of conventional gasoline blendstock by 1 psi “…would be beneficial to air quality, as emissions of carbon monoxide (CO), oxides of nitrogen (NOx) and volatile organic compounds (VOCs) would be reduced.” The study further concluded that “if the elimination of the 1-psi waiver [for E10] leads to the replacement of E10 with E15, it will also decrease greenhouse gases and particulate emissions.”
The organizations also wrote that the move would “simplify engineering of emissions control systems and help facilitate compliance with Renewable Fuel Standard requirements, with no noticeable impact on fuel costs.” They attached a new economic study showing that lowering the volatility of gasoline blendstock would impact the cost of the fuel by just 1-2 pennies per gallon.
In addition, the regulatory strategy suggested in the letter would address the Nov. 3 request from seven Midwest governors for EPA’s help to secure state-level regulatory approaches to allow the E15 blend to be made available year-round. “The approach we suggest here would be similar to that contemplated by the Governors, but rather than a state-by-state solution, the proposed regulatory fix would be nationally applicable.”
WASHINGTON, D.C., Dec. 7, 2021 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA will make up to $800 million available to support biofuel producers and infrastructure. Today’s announcement includes $700 million to provide economic relief to biofuel producers and restore renewable fuel markets affected by the pandemic. The Department will make the funds available through the new Biofuel Producer Program authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Additionally, in the coming months, the Department will make $100 million available to increase significantly the sales and use of higher blends of bioethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The Biden-Harris Administration is committed to further growth of the biofuels industry, and the House-passed Build Back Better Act commits additional funding that will provide better market access for farmers and more affordable and cleaner fuels for consumers.
“Under the leadership of President Biden and Vice President Harris, USDA is providing direct relief to the people of rural America who are still reeling from the economic impacts of the pandemic,” Vilsack said. “As we continue to rebuild the nation’s economy, USDA is targeting resources and investments to improve the strength and resiliency of America’s sustainable fuel markets. The relief we’re announcing today will pave the way to economic recovery for America’s biofuel producers, stimulate a critical market for U.S. farmers and ranchers and move the country closer to President Biden’s goal of net-zero carbon emissions by 2050.”
Background on the Biofuel Producer Program
Through the Biofuel Producer Program, USDA will make up to $700 million in direct payments available for biofuel producers who faced unexpected market losses due to the pandemic. USDA will announce the official application window for this program within the coming week.
By making payments to biofuels producers, the program will help agricultural producers maintain and create more viable markets for products that supply biofuel production, such as corn, soybeans, or biomass. Payments will be based on the producer’s market loss volume in 2020, which is calculated by the amount of fuel produced in 2020 in comparison to 2019.
Background on Grants for Biofuels Infrastructure
USDA intends to make up to $100 million available in new funds for grants for biofuels infrastructure, such as blender pumps which ensure biofuels have greater availability in the retail market. The funding will provide grants to refueling and distribution facilities for cost of installation, retrofitting or otherwise upgrading of infrastructure required at a location to ensure the environmentally safe availability of fuel containing bioethanol blends of E-15 and greater or fuel containing biodiesel blends B-20 and greater. USDA will announce the official application window for grants within the coming months.
Read the original press release here.
Agriculture Secretary Tom Vilsack said the administration appeared “very close” to releasing a long-promised $700 million in pandemic aid to biofuel producers. The aid was announced in March as part of a remodeling of coronavirus relief programs by the incoming administration.
“I think we are very close to getting that done,” Vilsack said during a teleconference on Friday. “Sometimes it is frustrating to negotiate with our friends at OMB but that is the process.”
Ethanol production plunged 12% during 2020, mirroring the plunge in gasoline consumption due to stay-at-home orders and the economic recession that accompanied the pandemic. Ethanol makers lost $3.8 billion in sales, estimated the trade group Renewable Fuels Association at the end of 2020, which called repeatedly for federal aid. As much as 40% of the U.S. corn crop is used in making the renewable fuel and co-products.
The ethanol industry and its allies in Congress have pressed the EPA to announce targets for biofuel use this year and for 2022. Ordinarily, the Renewable Fuel Standard for each year is finalized by Nov. 30 of the preceding year. The Trump administration left office without setting an ethanol mandate for 2020. Vilsack said he expected an announcement “in the very near future.”
Vilsack discussed aid to the biofuel industry while announcing $633 million in USDA loans and grants through five rural economic programs aimed a renewable energy and community facilities on Friday.
More than half of the money, $356 million, went to projects proposed through the Rural Energy for America Program (REAP), which helps farmers and small businesses install renewable energy systems or to improve their energy efficiency. Vilsack visited a family-owned grocery store in Shrewsbury, a small town in southeastern Pennsylvania, that will use a $103,413 REAP grant to install solar panels that are expected to reduce the store’s electricity bills by $30,852 a year.
“The announcements are both large and small,” said Vilsack. Dozens of small grants, such as $40,910 to Ohana Banana Farm in Hilo, Hawaii, were mixed with large loans; $150 million of the REAP disbursements went to six projects, who each got a $25 million loan.
Beside REAP, the USDA loaned $241.8 million to nine solar projects through its Electric Loans for Renewable Energy; issued $3.2 million in grants for eight projects through the Higher Blends Infrastructure Incentive Program, which shares the cost of installing pumps and storage tanks for biofuels; and grants of $195,000 to six projects through its Community Facilities Disaster Grant program.
Read the original story here.
Nov 30, 2021
Operable biofuels production capacity in the U.S. expanded by 32 MMgy in September to 20.766 billion gallons per year, according to data released by the U.S. Energy Information Administration on Nov. 30. Feedstock consumption was down for the month.
The increase in operable biofuels capacity came from expanded biodiesel production capacity. Capacity levels for fuel ethanol and other biofuels, defined as renewable heat oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, remained steady.
Fuel ethanol capacity was at 17.393 billion gallons per year in September, a figure that has held steady since April. Biodiesel capacity expanded to 2.462 billion gallons per year, up from 2.43 billion gallons reported the previous month. Capacity for other biofuels was at 911 MMgy, flat with the previous three months.
A total of 24.308 billion pounds of feedstock went to biofuels production in September, down from an estimated 24.948 billion pounds in August.
Biofuel producers consumed approximately 22.799 billion pounds of corn in September, down from 23.196 billion pounds the previous month. Grain sorghum consumption was also down, falling to 27 million pounds, compared to 30 million pounds consumed in August.
The EIA reported that 756 million pounds of soybean oil was used to produce biofuels in September, down from 815 million pounds in August. Corn oil and canola oil consumption also fell. Biofuel producers consumed 167 million pounds of corn oil and 106 million pounds of canola oil in September, down from 199 million pounds and 142 million pounds, respectively, in August.
The consumption of waste oils, fats and greases was also down in September. Biofuel producers consumed 18 million pounds of poultry fat during the month, flat with August. Tallow consumption fell to 90 million pounds, down from 120 million pounds. The consumption of white grease was at 54 million pounds, down slightly from 55 million pounds in August. Biofuel producers consumed only 219 million pounds of yellow grease in September, down from 305 million pounds the previous month. Waste oils, fats and greases classified as “other” fell to 5 million pounds, down from 8 million pounds.
Biofuel producers also consumed 63 million pounds of feedstock classified as other recycled feeds and wastes, up from 60 million pounds in August. The consumption of other biofuel feedstocks not elsewhere specified or identified (NESOI) in the EIA’s report was at 4 million tons in September. Data on NESOI feedstock was not reported for August to avoid disclosure of individual company data.
Full copies of the EIA’s monthly biofuels capacity and feedstock reports is available on the agency’s website.
Read the original story here.
Nov 23, 2021
On Monday, the Renewable Fuels Association, Growth Energy, the National Biodiesel Board, National Corn Growers Association, and National Farmers Union thanked Congress for efforts to “build new markets for farmers and biofuel producers and help lower the carbon intensity of agriculture.” In a joint letter to the chairs of the House and Senate agriculture committees, U.S. Sen. Debbie Stabenow (D-Mich.) and U.S. Rep. David Scott (D-Ga.), biofuel and farm leaders offered appreciation for key provisions of the Build Back Better (BBB) Act, which passed the House on Friday and was sent to the Senate.
“One of the most pressing challenges facing biofuel producers is ensuring that consumers have consistent access to higher-level ethanol and biodiesel blends, which are lower carbon and lower cost than petroleum fuels. The Biofuel Infrastructure and Agriculture Product Market Expansion provision in the BBB Act helps address this issue and contains much needed funding to ensure consumers have access to these fuels,” they wrote in reference to $1 billion allocated to upgrade refueling and distribution infrastructure meant for higher blends of ethanol.
Advocates also pointed to lifecycle analysis illustrating how improved farm practices continue to drive down the carbon intensity of farming, and therefore the overall carbon intensity of biofuels.
“The BBB Act provides further voluntary incentives like cover crops, nutrient management, buffers, and incentives for locally-led conservation efforts that will help reduce the carbon intensity of agriculture even further, helping biofuel producers provide an even lower carbon liquid fuel at a time when demand for low carbon fuels is rising. As biofuel producers capture the value of low carbon farming practices, farmers would also have the opportunity to benefit in the form of premium prices for their commodities.,” they noted.
The full letter is available here.
Read the original story here.
Nov 17, 2021
U.S. fuel ethanol production expanded by 2 percent the week ending Nov. 12, according to data released by the U.S. Energy Information Administration on Nov. 17. Stocks of fuel ethanol were down 1 percent.
Ethanol production averaged 1.06 million barrels per day the week ending Nov. 12, up 21,000 barrels per day when compared to the 1.039 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week was up 89,000 barrels per day.
Stocks of fuel ethanol fell to 20.081 million barrels the week ending Nov. 12, down 205,000 barrels when compared to the 20.286 million barrels of stocks reported for the previous week. When compared to the same week of last year, fuel ethanol stocks for the week ending Nov. 12 were down 122,000 barrels.
Read the original story here.
More...
Nov 16, 2021
As the Biden administration continues to explore options for addressing high gas prices, the Renewable Fuels Association sent a letter to the White House late Monday explaining that strong Renewable Fuel Standard (RFS) volumes and expanded ethanol consumption would help keep pump prices in check.
RFA’s letter follows media reports that Biden administration officials may be considering lowering RFS volumes based on the mistaken belief that the program somehow is a factor contributing to current high gas prices.
“To be clear, lowering biofuel blending requirements under the Renewable Fuel Standard (RFS) would not reduce the cost of gasoline for American households,” wrote RFA President and CEO Geoff Cooper in a letter to National Economic Council Director Brian Deese. “In fact, cutting RFS volumes would most assuredly have the exact opposite effect on consumer gas prices. Reducing the domestic usage of low-cost renewable fuels like ethanol would increase demand for petroleum at a time when global oil inventories are already strained and prices are at seven-year highs.”
RFA noted that ethanol presently extends the U.S. gasoline supply by nearly 1.1 million barrels per day, equivalent to the combined crude oil production from Alaska, California, Utah, and Wyoming. According to a renowned economist and energy policy advisor to two former presidents, the use of roughly 1 million barrels per day of ethanol in the United States has lowered the average price of crude by $6 per barrel, thereby cutting the retail gasoline price by $0.22 per gallon.
The letter also pointed out that gasoline with just 10 percent ethanol (E10) is currently selling for 10-15 percent less (typically 35-50 cents per gallon) than “ethanol-free” gasoline (E0). Higher blends like E15 and E85 offer even greater savings.
“Rather than undermining the market for low-carbon renewable fuels, we encourage you to follow through on the President’s Day 1 pledge to ‘double down on the liquid fuels of the future,’” Cooper wrote. “This includes immediately proposing strong RFS volumes for 2021 and 2022, and taking swift regulatory action to facilitate the rapid expansion of E15 availability nationwide.
Read the original story here.
Nov 15, 2021
Bioenergy accounted for approximately 3.52 million of the 12 million global renewable energy jobs in 2020, according to an annual jobs report released by the International Renewable Energy Agency (IRENA) in late October. Total bioenergy jobs were down slightly when compared to the 3.58 million reported for 2019.
Liquid biofuels accounted for 2.411 million jobs in 2020. Solid biomass, biogas, and municipal and industrial waste accounted for 765,000, 339,000, and 39,000 jobs, respectively.
The report notes that global biofuels production fell 6 percent last year, from 161 billion liters (42.53 billion gallons) in 2019 to 151 billion gallons in 2020. The decrease is attributed to market impacts associated with the COVID-19 pandemic. Ethanol output was down approximately 8 percent, while biodiesel production was relatively steady.
The U.S. and Brazil remained the world’s dominant ethanol producers last year, with a combined 83 percent share of production. The U.S., Indonesia and Brazil produced a combined 45 percent of biodiesel in 2020. The European Union accounted for 31 percent of biodiesel production.
Latin America accounted for 44.4 percent of global biofuel fuels jobs last year. Asia accounted for 33.6 percent, while North America accounted for 11.8 percent and Europe accounted for 10 percent. The relatively low labor levels in the U.S. and Europe are primarily attributed to highly mechanized agricultural operations in both regions.
According to the report, 368,000 of the world’s 765,000 solid biomass jobs are located in the European Union. An additional 188,000 jobs are located in China, with 58,000 jobs in India and 44,500 jobs in the U.S. In the U.S., 32,442 jobs were in wood biomass fuels, with 12,039 jobs in biomass power.
China accounted for 145,000 of the 339,000 global biogas jobs last year. India accounted for an estimated 85,000 biogas jobs, while 76,000 biogas jobs were located in the European Union. The number of biogas job in the U.S. was not available.
Read the original story here.
Nov 5, 2021
NEW YORK, Nov 5 (Reuters) - The U.S. Environmental Protection Agency has rejected so far one petition from an oil refiner to be exempted from the nation's biofuel blending laws for the 2019 compliance year, EPA's website showed on Friday.
The move comes at a time when the oil and biofuel industries await an indication from the Biden administration on how it will approach blending requirements under the U.S. Renewable Fuel Standard (RFS). Though the EPA, which administers the RFS, rejected the one petition from 2019, it still has to decide on 32 pending petitions for that year.
Under the RFS, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix, or buy tradable credits from those that do. Refiners can request a waiver from the EPA that would exempt them from those requirements if they can prove the obligations would do them financial harm.
During the coronavirus pandemic, the EPA delayed a decision on blending requirements for 2021, and a finalized rule has been late by nearly a year. The deadline for 2022 requirements is the end of this month.
The oil industry and the biofuels industry have been at odds over the regulations for years. The biofuels industry says the exemptions hurt demand for their products, while independent refiners reject that claim and say that exemptions are needed for smaller refineries to stay afloat.
Aside from the 2019 compliance year, EPA's website shows that there are 28 pending petitions for 2020 and three pending petitions for 2021.
The EPA was to decide on a petition from United Refining Co (RAPPLU.UL) by Friday, after the company filed a lawsuit against EPA administration for the delay in deciding on the company's 2019 exemption petition.
United Refining did not immediately respond to a request for comment.
Read the original story here.
Nov 4, 2021
The Renewable Fuels Association today thanked a bipartisan group of seven Midwestern governors for their efforts to explore what actions can be taken to allow the year-round sale of E15 in their states.
In a letter sent to EPA Administrator Michael Regan today, the governors seek guidance from the agency on how best to pursue a specific provision of the Clean Air Act that allows states to establish a “level playing field” for E15. The governors’ letter follows a recent D.C. Circuit Court decision that found in favor of oil refiners and overturned EPA’s 2019 regulation that finally allowed the year-round sale of E15 in conventional gasoline markets.
“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” the letter states. “Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and state governments have invested hundreds of millions of dollars in recent years to expand consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision threaten to strand these public and private investments, but it also jeopardizes the progress we’ve made toward cleaning up our fuel supply and reducing emissions from transportation.”
Commenting on the letter, RFA President and CEO Geoff Cooper said, “We sincerely appreciate the efforts of these governors to protect and expand market opportunities for the region’s farmers and ethanol producers. The governors should be applauded for working together to proactively seek solutions at the state level, rather than waiting for Washington to clean up yet another regulatory mess created by the oil industry. Ethanol producers and farmers stand with these governors, and we will leave no stone unturned in our pursuit of an open and competitive marketplace for E15 and other lower-cost, lower-carbon ethanol blends. We encourage EPA to expeditiously respond to the governors and open the dialog needed to remove the outdated and absurd regulatory barrier to summertime sales of E15 in these states.”
Governors signing the letter were Kim Reynolds (R-Iowa), Pete Ricketts (R-Nebraska), Tim Walz (D-Minnesota), Tony Evers (D-Wisconsin), Doug Burgum (R-North Dakota), Kristi Noem (R-South Dakota), and Mike Parson (R-Missouri). In addition, Gov. Laura Kelly (D-Kansas) sent a similar letter to EPA in recent weeks. This bloc of eight contiguous states consumes approximately 13 billion gallons of gasoline annually. A universal move from E10 to E15 across these states would expand ethanol consumption by nearly 700 million gallons and boost corn demand by 225 million bushels.
Read the original news release here.
Oct 28, 2021
As leaders from around the world descend on Glasgow, Scotland for the 26th U.N. Climate Change Conference, also referred to as COP26, the Renewable Fuels Association reminds them that ethanol and other renewable fuels are available—today—to jumpstart global decarbonization efforts. A new one-page fact sheet released by RFA today spotlights recent research and data proving that ethanol is an immediate solution for cutting greenhouse gas emissions from transportation.
“Ethanol already cuts carbon emissions in half compared to gasoline; with smart policy measures, ethanol can do even more,” said RFA President and CEO Geoff Cooper. “Ethanol can serve as a zero-emissions fuel for cars and trucks while also helping to decarbonize the aviation, marine, and stationary power generation sectors. That’s why our members have unanimously committed to achieving a net-zero carbon footprint by 2050 or sooner. We urge world leaders gathering for COP26 to take a closer look at ethanol and encourage them to include a prominent role for renewable liquid fuels in their national decarbonization plans.”
In a July letter to President Biden, RFA’s members pledged that ethanol will achieve a net-zero carbon footprint by mid-century, if not well before, as the supply chain adopts CCUS technologies; uses more renewable energy to power biorefineries; and expands carbon-efficient feedstock production practices.
At the same time, they noted it also requires simple action from Washington. To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard; deployment of more flex-fuel vehicles; and support for broad adoption of carbon capture, utilization and sequestration technologies.
Ethanol producers from across the country, from California to New York, have signed onto this pledge, Cooper noted, and it is featured in an ad campaign currently running in select Morning Consult email newsletters.
For more information, visit EthanolRFA.org/pledge.
Recent Research on Ethanol and Carbon Emissions:
- In January, scientists affiliated with Harvard, MIT, and Tufts University published an analysis finding that corn starch ethanol produced in the United States reduces GHG emissions by 32 to 62 percent compared to gasoline, with a central best estimate of 46 percent.
- In February, Life Cycle Associates released a report showing that the use of ethanol and other biofuels under the Renewable Fuel Standard has reduced GHG emissions by 980 million metric tons since 2008.
- And in May, experts at the Department of Energy’s Argonne National Laboratory published a study demonstrating that average corn ethanol reduces GHG emissions by 44 to 52 percent compared to gasoline, right in line with the findings from the January study.
Read the original story here.
Oct 28, 2021
President Biden and Congressional leaders on Oct. 28 released a proposed Build Back Better budget reconciliation framework that includes nearly $1 billion for biofuels infrastructure, a four-year extension of the biodiesel tax credit and a new tax credit for sustainable aviation fuel (SAF).
One section of the nearly 2,500-page proposed bill allocates $960 million through Sept. 30, 2031, to provide competitive grants to install, retrofit, or otherwise upgrade fuel dispensers, storage tank components and other infrastructure required to supply fuel ethanol blends of greater than E10 and biodiesel blends of greater than B20. The funds can also be used to retrofit certain distribution systems for these fuels, including rail lines and home heating oil distribution centers. Fueling stations, convenience stores, fleet facilities, terminal operators, mid-stream partners and heating oil distribution facilities are among the entities eligible for the grant program.
The bill also currently includes extensions of the biodiesel and renewable diesel tax credit and the second-generation biofuel production tax credit. In addition, the legislation creates a new tax credit for SAF. The SAF credit begins at $1.25 per gallon with an extra 1 cent per gallon for each percentage point by which the lifecycle greenhouse gas (GHG) emissions reduction percentage with respect to such fuel exceeds 50 percent.
Rep. Cindy Axne, D-Iowa, issued a statement touting the biofuel provisions included in the proposed package. “Not only does the Build Back Better Act represent the largest investment in clean energy and combating climate change ever – it also confirms that my colleagues have listened to my central argument in our clean energy discussions: biofuels can and should be a part of our fight against climate change,” Axne said. “For months, I have been helping members of the administration, the Senate, and my own colleagues in the House understand the key advantages of biofuels – from the fact that it’s been proven to be more than twice as clean as fossil fuels to how much it can help the economies of states like Iowa. And now I will continue working to get these investments to the President’s desk.”
Growth Energy has issued a statement in support of the bill’s biofuel infrastructure provisions. “President Biden’s proposal to invest $1 billion in biofuels infrastructure is a welcome acknowledgment from this administration that access to higher blends of biofuels at the pump makes a real difference in decarbonizing transportation,” said Emily Skor, CEO of Growth Energy. “Recent research shows that a nationwide E15 standard would reduce CO2 emissions by more than 17.62 million tons – the equivalent of taking 3.85 million cars off the road each year. Investing in fuel infrastructure that allows more American drivers to fill up on low-carbon biofuel blends, like E15, is crucial to helping our nation achieve our clean energy goals today.”
Read the original story here.
Oct 26, 2021
Novozymes is introducing Innova Quantum, a new addition to its powerful Innova yeast platform. The robust new yeast enables ethanol plants with longer fermentation times of more than 60 hours to realize higher ethanol yields and processing efficiencies than ever before. And, most importantly, plants can achieve this industry-leading yield without trade-offs which put their operation at risk.
“Innova Quantum is the most advanced yeast available and sets a new industry benchmark for the highest yielding, most robust yeast to maximize producer yield and fermentation reliability,” says Rene Garza, Novozymes’ Vice President for Agricultural & Industrial Biosolutions, North America. “With its launch, we are redefining fermentation and operational performance, as new yeast strain and enzymatic developments unleash additional performance capabilities. Our primary goal is to help our customers protect their plant while enabling the highest level of conversion – and Innova does not require this trade-off.”
A boost for ethanol producers
Innova Quantum has significant robustness and works particularly well under differing processing conditions. This means that ethanol producers can maintain consistency in challenging conditions, maximize the fermentation process towards optimal starch conversion, and achieve the highest ethanol yields in the industry.
Producers can increase ethanol yield by 2-3% with the new yeast, which for a 100MGY plant translates to an additional $1-2 million in revenue. Designed to operate in fermentations >60 hours, Quantum with new strain development is capable of converting the most sugar to ethanol while significantly lowering fermentation by-products such as glycerol up to 40% – all without the trade-off and risk of robustness loss experienced with competing yeasts. And, Quantum expands plant flexibility fermenting to >16% w/v ethanol concentrations, while eliminating the need for expensive nutritional supplements.
“Innova Quantum is a boost for ethanol producers that enables them to realize greater profitability without trade-offs that rob plants of reliability and consistency. Quantum delivers higher ethanol yields without risking robustness,” adds Garza. “They can pursue greater yields while safeguarding their plant, yields, and profit.”
A platform for growth and protection
Novozymes’ Innova platform is already the most robust yeast in the industry. Within three years of its emergence on the market, nearly half of North American ethanol is produced using Innova yeasts, indicating how the platform fulfils a significant market need for groundbreaking bioinnovation that makes a real, tangible difference for producers.
Based on customer needs and Novozymes’ commitment to a better tomorrow, the launches of Innova Quantum and Element fermentation solutions, the Fortiva Hemi liquefaction solution, and Fiberex F2.5 for fiber-to-low-carbon ethanol production, together deliver the industry’s most holistic, sustainable, and advanced approach to ethanol production.
“Innova Quantum is our latest way of providing producers with peace of mind to convert at the highest level, while reducing plant risk,” says Rene Garza. “We aim to make a significant contribution to the ethanol production industry and support producers as they grow and protect their plants.”
Learn more here
Oct 12, 2021
The USDA maintained its forecast for 2021-’22 corn use in ethanol in its latest World Agricultural Demand and Supply Estimates report, released Oct. 12. Estimated 2020-’21 corn use for ethanol production was reduced slightly.
The USDA said the current 2021-’22 U.S. corn outlook is for slightly higher production, increased exports, lower feed and residual use, and larger ending stocks.
Corn production is forecast at 15.019 billion bushels, up 23 million on a marginal increase in yield to 176.5 bushels per acre. Corn supplies are forecast up 72 million bushels from the September WASDE on slightly higher production and increased beginning stocks based on the Sept. 30 Grain Stocks report.
Exports are raised 25 million bushels reflecting larger supplies and expectations of reduced competition from other major exporters. Projected feed and residual use is lowered 50 million bushels based on indicated disappearance during 2020-’21.
The USDA maintained its forecast for 2021-’22 corn use in ethanol at 5.2 billion bushels. Estimated 2020 -’21 corn use for ethanol, however, was revised down slightly to 5.032 billion bushels, down from the estimated 5.035 billion bushels included in the September WASDE. Corn use for ethanol was at 4.857 billion bushels in 2019-’20.
Corn ending stocks for 2021- ‘22 are raised 92 million bushels due to expected increases in supply and lower forecasted use. The season-average corn price received by producers is unchanged at $5.45 per bushel.
Foreign corn production is forecast essentially unchanged as increases for the EU, Canada, Venezuela and Serbia are largely offset by declines for Ukraine, Russia and Guatemala. EU corn production is raised reflecting increases for Poland and Romania more than offset declines for France and Bulgaria. Corn production in Canada is higher reflecting favorable yield prospects for Ontario. Projected corn yields for Russia and Ukraine are lowered based on reported harvest results to date.
Corn exports are raised for India, the U.S. and the EU, with partly offsetting reductions for Ukraine, Russia and Vietnam. For 2020-’21, corn exports for Brazil are lowered for the local marketing year beginning March 2021, based on shipments through the month of September. For 2021-’22, corn imports are lowered for Vietnam, Chile, Algeria, Israel, Lebanon and Saudi Arabia, but raised for Bangladesh. Foreign corn ending stocks are higher, mostly reflecting increases for China and Mexico, with a partly offsetting reduction for Ukraine. Global corn stocks, at 301.7 million, are up 4.1 million.
Read the original story here.