In the News

Bloomberg

September 28, 2016

By Mario Parker

Ethanol is taking a bigger slice of American gas tanks.

Ethanol’s share of the U.S. gasoline market reached a record 10.2 percent last week, a government report showed Wednesday. Biofuel and oil interests have battled for years over whether to breach the double-digit threshold or so-called blend wall.

“This tells us that people are willing to push past 10 percent,” Jason Ward, an analyst at Northstar Commodity Investments LLC in Minneapolis, said by phone.

Petroleum supporters argue that blends of ethanol in excess of 10 percent pose engine risks. The ethanol industry, which opposes that claim, is lobbying for higher concentrations of the fuel to be mixed into gasoline and sold at filling stations.

Five years ago, the Environmental Protection Agency approved the sale of E-15, a formula that’s 15 percent ethanol and the rest gasoline, for cars built after 2001. Widespread adoption has been slow and the blend wall is a source of contention about the viability of the U.S. law that sets annual ethanol consumption targets.

Last week’s bump in market share is probably from a seasonal federal restriction on the higher blends that expired Sept. 15, Geoff Cooper, vice president and economist at the Renewable Fuels Association, a Washington-based trade group, said by e-mail.

Thorntons Inc. said earlier this year that it would distribute E-15 at its 43 Chicago-area gas station-convenience stores.

Read the original story: Americans Pumping Record Amounts of Ethanol in Their Gasoline

Renewable Fuels Association

September 27, 2016

WASHINGTON — High octane, low carbon (HOLC) fuels can play an important role in helping automakers comply with increasingly stringent fuel economy (CAFE) and greenhouse gas emission standards in the 2022–2025 timeframe, according to comments submitted Monday to the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) by the Renewable Fuels Association (RFA). In order to realize the benefits of HOLC fuels, however, EPA and NHTSA must ensure CAFE and GHG regulations treat fuels and engines as integrated systems, the RFA said.

“This is an important process because it will determine the path forward for future energy efficiency and environmental goals,” said RFA President and CEO Bob Dinneen. “EPA has correctly identified technologies that will effectively improve energy efficiency and reduce greenhouse gases. But the agency has failed to appropriately consider the fuels that will enable those technologies. That is an omission that must be addressed moving forward if future vehicles can in fact help us address climate change without backsliding on other critical air quality and public health priorities. We look forward to working with EPA and NHTSA as this process continues,” he added.

In 2012, EPA and NHTSA promulgated final regulations establishing the CAFE and GHG standards for 2017–2025. Included in the final rule was a requirement that the agencies conduct a “midterm evaluation” for the 2022–2025 standards and determine whether the standards established in 2012 are still appropriate in light of the latest available data. The first step in the process was the release this past July of the draft Technical Assessment Report (TAR) for public comment. RFA reviewed the TAR and commissioned a technical analysis by engineering and technical consultancy Ricardo, Inc.

According to RFA and Ricardo, many of the advanced internal combustion technologies examined by the two agencies would experience increased fuel efficiency and generate fewer emissions if operating on fuels with higher octane ratings than today’s regular grade gasoline, which has an octane rating of 87 (anti-knock index). According to the Ricardo analysis, “It is clear that implementing a high octane fuel standard would provide opportunity for increased engine efficiency and hence reduced greenhouse gases, and doing so by blending with ethanol provides an even greater benefit due to ethanol’s high heat of vaporization combined with the inherently low carbon footprint of ethanol. Many of the technologies discussed in the Draft TAR, including ones with the highest expected penetration rates, could produce greater GHG and fuel economy benefits if paired with fuels offering higher octane ratings and an inherently higher charge cooling characteristic.”

Meanwhile, automotive engineers and executives, Department of Energy researchers, the National Research Council and academia have also called for the introduction of high octane low-carbon fuels in an effort to increase fuel economy and decrease greenhouse gas emissions.

Additionally, growth in turbocharging has already resulted in an increased demand for higher-octane fuels. According to recent analysis from the Energy Information Administration, more stringent fuel economy and greenhouse gas standards caused automakers to increase the market penetration of turbocharging from 3.3 percent in 2009 to 17.6 percent in 2014. The surge in turbocharging was accompanied by an increase in the demand for high octane premium gasoline, according to EIA. In fact, premium gasoline sales rose from 7.8 percent of total gasoline sales in June 2008 to 11.3 percent of total gasoline sales by September 2015.

RFA outlined a handful of recommendations to the agencies:

-EPA and NHTSA should treat engines and fuels as integrated systems during the midterm evaluation process and beyond;

-As a sensitivity case to the central compliance demonstrations, the agencies should assess the fuel economy and emissions impacts associated with using HOLC fuels in advanced IC engines with high compression ratios;

-A comprehensive cost-benefit analysis of various CAFE/GHG compliance pathways including both engine and fuel technologies should be conducted. Such analysis should include a pathway for HOLC fuels in advanced IC engines;

-EPA and NHTSA should ensure the Proposed Determination fully accounts for the Co-Optima initiative’s recommendations for “candidate fuels” that best enable advanced IC engine technologies and maximize their efficiency; and

-The agencies should “heed the call” for HOLC fuels. EPA and NHTSA should use the MTE process to establish the roadmap to broad commercial introduction of HOLC fuels in advanced IC engines beginning in 2025.

View RFA’s formal comments here and the Ricardo, Inc., analysis here.

Read the original story: High Octane, Low Carbon Fuels Can Play Role in Compliance with Fuel Economy and GHG Standards, RFA Says

Renewable Fuels Association

September 21, 2016

WASHINGTON — As millions of Americans say goodbye to summer and prepare to store their boats, motorcycles, lawn mowers, leaf blowers, and other equipment for the winter, a new study by the Department of Energy (DOE) is providing fresh insight into a decades-old debate about the impacts of ethanol-blended gasoline on water uptake and “phase separation” in small and off-road engines.

The study, conducted by DOE’s National Renewable Energy Laboratory (NREL), found that the petroleum components of ethanol-blended gasoline become degraded and unfit for use in an engine long before the ethanol portion takes up enough water to cause phase separation in the fuel tank. “Phase separation” occurs when an excessive amount of water is introduced into the fuel tank leading the ethanol and water to mix and sink to the bottom of the tank. In other words, gasoline becomes “stale” and unusable before water uptake by the ethanol component becomes a concern.

“Significant gasoline weathering (evaporation of the most volatile components) can occur over one month of storage in a high-temperature, high-humidity environment, with total mass losses as high as 30-70% for certain tanks,” according to the study, which was commissioned by the Renewable Fuels Association (RFA). “This means gasoline weathering, which can have a negative effect on fuel quality, generally occurs well in advance of any issues related to phase separation. The fuel vapor pressure may drop to levels where the fuel is not fit for purpose (engine will be difficult or impossible to start) and there may also be gum formation.”

As part of the study, NREL scientists stored gasoline-ethanol blends ranging from E0 (0% ethanol) to E85 (83% ethanol)  in actual lawn mower fuel tanks over several months in a climate-controlled chamber meant to replicate hot, humid environments like Houston and Orlando. The samples were tested at regular intervals for evidence of gasoline weathering and water uptake.

In every case, the hydrocarbon components of the fuel became unfit for use in an engine before water uptake became a concern. Over time, the fuel samples experienced significant loss of volatility, loss of mass, reduced octane rating, increased concentration of sulfur and gum, and other degradations. The study found that ethanol-free gasoline (E0) degraded “to the same degree [as ethanol-blended fuels] during this timeframe…An ethanol-free gasoline stored in the same conditions for the same period of time would likely be problematic despite a lack of phase separation.”

For gasoline-ethanol blends, it often took more than three months for phase separation to occur, meaning the fuel had already weathered to a point it was unusable. “In a small engine fuel tank in a constantly high-temperature, high-humidity environment, it takes three months or longer for E10 and other ethanol blends to take up enough water for phase separation,” the study found.  “This confirms the statement by Mercury Marine that water uptake in E10 blends ‘…does not happen at a level or rate that is relevant.’”

The research also found that an advantage of ethanol blends is that they do in fact hold more water in suspension without phase separation than the hydrocarbon components of gasoline. The scientists found that “…more ethanol improves the fuel’s resistance to phase separation. This is an advantage that can help keep fuel systems ‘dry’ by moving low levels of water out of the system.”

RFA President and CEO Bob Dinneen offered the following comments on the new study:

“Simply put, critics who continue to suggest E10 is a problem for small engines and boat motors are all wet. This research from NREL clearly demonstrates once and for all that ethanol actually helps these engines run more efficiently. It also shows that gasoline goes bad long before the ethanol in the tank could cause any problems due to moisture uptake. This research effectively disproves the half-baked anecdotes and horror stories about E10 and small engines that have been pushed for decades by ill-informed biofuel opponents and snake-oil additive salesmen.

“Every manufacturer of small and off-road engines has approved the use of E10 in their equipment for many years. If owners of this equipment simply follow the manufacturers’ recommendations for fuel, maintenance, and winterization, they won’t have any issues at all. But, as this study shows, letting gasoline sit in your tank for extended periods of time is likely to cause some issues—irrespective of whether the gasoline contains ethanol or not.”

A summary of the NREL study is available here and the full study can be found here.

Read the original story: New DOE Study: Gas Becomes “Stale” Long Before Water Uptake Becomes a Concern

The Hill

September 19, 2016

By Anne Steckel

Headlines tell us the world is awash with oil. Gas costs less than bottled water in many places, and petroleum markets are in a prolonged slumpthat’s wreaking havoc on the industry’s bottom line.

But my instinct tells me this won’t last long. I’ve lived long enough to have seen this movie before. Gas prices fall, and gas prices rise. The only constant is that consumers, and Congress, can’t do much about it in a world dependent on oil.

To hear the oil industry tell it, the status quo is just fine. We have more than enough petroleum to continue our dependence on oil for the foreseeable future, they argue. The current “era of abundance,” they say, has eliminated the need for alternative fuels and the policies supporting them such as the Renewable Fuel Standard (RFS).

Nothing could be further from the truth, and we shouldn’t let the fleeting benefits of today’s low oil prices cloud our judgment. Instead of knee-jerk energy policy reacting to the oil markets, we need stable, long-term policies like the RFS that help develop new technologies, diversify American energy supplies and protect consumers.

Anyone doubting this should look to the International Energy Agency’s most recent monthly oil market report, which found that the Middle East’s share of the world market has climbed recently to 35 percent – the highest it’s been since the late 1970s. This comes after OPEC nations, Russia and others have openly manipulated supplies to maintain their dominance on the global market.

Imagine if other industries did this – if nations openly colluded to shape the cost of medicine or food. The world would be outraged, and conspirators would go to jail. Yet with oil – the commodity that most shapes the health of the global economy – we’ve resigned ourselves to state-supported price-fixing. It’s because we are dependent on it. We have no choice.

This is the same oil market that US oil lobbyists argue is a free market. Big Oil routinely maintains that we should simply let the market work – that we don’t need policies supporting alternative fuels. Never mind that there is no true free market in oil, and that even when we drill more at home, prices are set on the heavily manipulated global market.

This also ignores the fact that because our economy is so dependent on energy, Congress has wisely adopted policies for more than a century to develop diversified domestic production. This includes tax incentives, low-cost loans, federal research, and grants for all manner of energy industries, including oil and gas, nuclear power, wind and solar, coal, and fracking.

Without those polices, we wouldn’t be the global leader in energy production that we are today.

The RFS, signed into law by President George W. Bush in 2005 with bipartisan congressional support, is a continuation of that strategy that is doing the job. We now get nearly 10 percent of our transportation fuel from clean, renewable sources, and that percentage will only rise if we stay the course.

And it’s not just about corn ethanol. The industry I work for, biodiesel, has grown from a small, niche business into a commercial-scale industry with production plants in almost every state in the country. Last year, Americans consumed a record of more than 2 billion gallons of biodiesel, made from a variety of resources such as soybean oil and recycled cooking oil.

Along with diversifying the market, biodiesel is creating American jobs and economic activity. It significantly reduces greenhouse gas emissions – by 57 percent to 86 percent compared with petroleum diesel, according to the EPA, qualifying it as an Advanced Biofuel under the RFS.

This is a tremendous success for the country that we should all support – regardless of the latest price of a barrel of oil. We all know that price will rise again, and when it does the public will demand that Congress do something about it. Nothing changes over night, but the RFS is smart policy that already is shaking up the oil monopoly and giving consumers a more competitive market.

Steckel is Vice President of Federal Affairs for the National Biodiesel Board. With nearly 200 member companies, NBB is the leading U.S. trade association representing biodiesel and renewable diesel.

Read the original story: Do We Still Need a Renewable Fuel Standard?

Ethanol Producer Magazine

Sept 20, 2016

By Ann Bailey

Jennifer Roepke recognizes her work is just part of the process. The lab manager at Heartland Corn Products in Winthrop, Minnesota, takes great pride in doing her job in a way that will benefit not only her laboratory, but the company as a whole. “A lab manager in ethanol needs to understand the process—from the grinding of the corn to the shipping of the ethanol,” Roepke says.

Heartland Corn Products Vice President Tim Miller appreciates Roepke’s attitude. “She’s our Rock of Gibraltar,” Miller says. Roepke was the first person he hired when the plant started up in 1995, he notes. With her background in science, she seemed like she would be a good fit for the position at the new ethanol plant, he says.

Roepke, who earned a degree in biomedical science from St. Cloud State University in 1990, worked in the genetics laboratory at Mayo Clinic in Rochester, Minnesota, for four years before moving to the Winthrop area in 1994 with her husband, Scott, who works as a biologist at the Minnesota Department of Natural Resources. “I thought: ‘What am I going to do there?’’’ Roepke recalls. When Heartland Corn Products brought the ethanol plant on line in 1995, Roepke decided to apply for the job, even though she knew what she would be doing in the lab there would be very different from what she had done at Mayo Clinic. “There aren’t a lot of genetics labs out in small towns,” Roepke says. “If I was going to take a job close to where my husband was going to work, I was going to have move out of that type of medical field.”

While there was a learning curve involved in working in an entirely different type of laboratory, a bigger challenge was moving from a large company to a small one, Roepke says. “You have to wear a lot more hats in a small company. You have to learn how to cross-train and a do lot of different tasks, whereas at Mayo Clinic, you kind of learn one thing and become very, very efficient at it.”

She immersed herself in learning about ethanol in her first few weeks on the job, traveling to an ethanol plant in South Dakota to be mentored by a lab manager. When she finished that, she went to a yeast school in Kentucky. “I had a lot to learn—still do,” Roepke says. She continues her education on the ethanol industry and innovations in lab techniques and technology by attending workshops and using the resources available through the Renewable Fuels Association, she says. “They give us a lot of guidance.”

Two Decades of Change
During the past couple of decades, technology has significantly changed the way work is done in the laboratory at Heartland Corn Products.  “It’s a lot different than it used to be,” Roepke says. “The specification list on ethanol has been added to through the years and each time they make an addition, it’s an additional test. That’s constantly changing, and I am sure there will be more testing in years to come. We’ve added a lot of equipment for different things. We’ve added density meters, a Karl Fischer titrator, ion chromatography. Another big one is gas chromatography.”

The additional tests are required because they help ensure the product quality is more consistent, Roepke says. Besides all of the tests that her lab conducts, she and the lab technician also issue fill certificates when unit trains arrive to pick up ethanol at Heartland Grain Products. “We take a sample, run all of the tests on it to be sure that the numbers meet specifications and then we issue a certificate of analysis to our customers for those trainloads of ethanol,” Roepke says.

She enjoys the challenge of keeping on top of the changes in the ethanol industry. “I like there’s always something new to be learning.  A lot of the learning comes from the changes in the enzymes and the yeasts and how we’re trying to optimize fermentation,” she says.

Just as Roepke’s knowledge about ethanol industry laboratory testing and procedures has grown during the past 21 years, so has the capacity of Heartland Corn Products. “It used to be a tiny 10 million gallons a year (MMgy) plant,” Roepke says. “Now the plant is 100 MMgy, 10 times what it originally started at.”

Roepke takes pride in doing her work in a way that has a ripple effect down the line. She strives to catch details in lab results that help Heartland save water and be more energy efficient. “You look at a sample that’s coming out of a certain step in the process and ask questions, if you see changes have occurred along the way, and try to figure out what is causing lab numbers to drift away from the baseline,” Roepke says. “It’s establishing normal so when things do change, you know they’re changing.”

Finding ways to improve efficiency is what Heartland Corn Products strives to instill in all of its employees, Miller says. “That’s always been the goal for all of us. We’ve all worked together on that,” he says.

It’s evident Roepke has a broad knowledge of Heartland Corn Products and understands the importance of seeing the big picture. During a plant tour, she shares information with visitors about plant equipment—both inside and outside. She talks about the new buildings and tanks that have been constructed over the years, and why they were added to the ethanol plant.

“She’s got a wealth of knowledge about how everything works both in the lab and in the plant,” Miller says. “She’s our go-to person. She’s our E.F. Hutton. When she talks, we all listen. She knows the process from the bottom up and she has been a great employee for us, a wonderful resource.” 
Roepke not only has a lot of knowledge about how the ethanol process works, she’s willing to share it with other Heartland employees, he says. “She works with the operators and with the supervisors and explains to them how the process is working both biologically and physically. (She) teaches.”

“When we have new operators. I spend quite a bit of time with them, trying to get them to understand what every step in the process is for and why it’s important for them to watch their parameters,” Roepke says. 

Miller appreciates the pride that Roepke takes, not only in her work in the Heartland Corn Products laboratory, but in the company as a whole.  “She acts like she owns the place, which is good.”

Read the original story here : At The Heart Of The Ethanol Process

Renewable Fuels Association

Sept 14, 2016

Consumer choice at the pump will get a shot in the arm on Thursday as the Environmental Protection Agency’s (EPA) arcane restriction on summertime E15 sales finally expires for the year. The end of EPA’s “volatility control season” means many gasoline retailers can again sell E15 to conventional automobiles built in 2001 and later years without needing to secure more expensive, specially-tailored gasoline blendstock.

In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not allow E15 to benefit from the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver that is available to E10 blends. As a result of this disparity, retailers in conventional gasoline areas (most of the country) would have to secure specialty gasoline blendstocks in order to continue selling E15 in the summer. Such gasoline blendstock is generally unavailable in conventional gasoline areas and would be uneconomical to ship. EPA has jurisdiction over gasoline volatility from June 1–Sept. 15 every year.

“In 1989, EPA provided an RVP waiver to 10 percent ethanol blends, concluding there would be no air quality consequence and retailers would otherwise be unable to secure blendstocks for ethanol blending year-round,” said RFA President and CEO Bob Dinneen. “Those same circumstances exist for E15. Indeed, as data submitted by RFA to EPA has shown, emissions from E15 are even lower than E10 and consumers would benefit all year long from a fuel that is higher octane, lower cost and cleaner.”

In a letter to EPA in December 2015, RFA urged the agency to take immediate administrative action to eliminate this regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends. EPA has stated it does not believe it has the statutory authority to extend the 1 psi RVP waiver to E15. While RFA disagrees with EPA’s conclusion on that issue, another option available to the agency would be to simply require lower-RVP summertime conventional gasoline blendstocks for mixing with all ethanol blends.

“We just want RVP parity for E15 and E10, so the marketplace and consumers have the freedom to choose the fuel that works best for them,” Dinneen said. “EPA’s continued inaction on the summertime volatility restrictions is stifling the growth of higher ethanol blends and incorrectly using that as justification to propose lower 2017 renewable fuel standard targets. We reiterate the need for EPA to address this issue.”

Joining the growing chorus of calls to secure RVP parity for E15 and E10, on Tuesday a bipartisan group of seven Midwest governors sent a letter to EPA Administrator Gina McCarthy, asking the agency to eliminate the unfair E15 RVP treatment.

“There are over 300 stations in 24 states that offer E15 for sale, including retailers such as Sheetz, Kum & Go, Murphy USA and Protec Fuel,” said RFA Vice President of Industry Relations Robert White. “However, most of those stations are not in reformulated gasoline markets and have to put their E15 sales on hold during the summer months to comply with these needless restrictions. EPA’s summer volatility restriction remains the top hurdle for further growth of E15 and something that needs to be addressed.”

To help with further market penetration, HWRT Oil Company will begin offering pre-blended E15 on Friday at the terminal level in three states, giving retailers further access to the fuel blend. At the same time, Diesel Dogs, a fuel distributor in Minnesota, will also begin offering E15 to retailers. Meanwhile, thanks to the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership program, approximately 1,500 new stations will be offering E15 in the coming months.

Read the original story here : Bureaucratic Barrier To Cleaner, Cheaper E15 Will Be Lifted Thursday

E152

Lufthansa

Ethanol Producer Magazine

Sept 7, 2016

Gevo Inc. recently announced that it has entered into a heads of agreement with Deutsche Lufthansa to supply Gevo’s alcohol-to-jet fuel (ATJ) from its first commercial hydrocarbons facility, intended to be built in Luverne, Minnesota.  The terms of the agreement contemplate Lufthansa purchasing up to 8 million gallons per year of ATJ from Gevo, or up to 40 million gallons over the 5 year life of the off-take agreement.

The heads of agreement establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build-out Gevo’s first commercial scale hydrocarbons facility.  The heads of agreement is non-binding and is subject to completion of a binding off-take agreement and other definitive documentation between Gevo and Lufthansa, expected to be completed in the next few months.

Read the original story here

Ethanol Producer Magazine

September 06, 2016

By Erin Voegele

On Aug. 24, the New York Department of Agriculture and Markets published a proposed rule in the New York State Register proposing to update the statement’s fuel regulations to allow for the sale of E15 in model year 2001 and newer vehicles.

In addition for allowing for the sale of E15 blends, the proposed rule also includes a provision that will require ethanol blends to comply with certain labeling requirements required by federal regulation. The proposal states retailers “must post the octane rating of [all] automotive gasoline, except gasoline-ethanol blends containing more than 10 percent and not more than 15 percent ethanol by volume.” This must be accomplished by “putting at least one label on each face of each gasoline dispenser through which” gasoline is sold. If two or more kinds of gasoline with different octane ratings are sold from a single dispenser, the retailer must but separate labels for each kind of gasoline on each face of the dispenser. In addition, the proposed rule will require automotive gasoline to meet updated ASTM International standards.

Growth Energy has spoken out in support of New York’s proposed move to E15, noting the state consumes more than 5.5 billion gallons of gasoline each year, making it the fourth largest gasoline market in the U.S. Growth Energy also said it has worked extensively with Poet over the past two years to update the regulation.

“This proposal marks a major victory for consumers, who would gain access to cleaner, more affordable choices at the pump,” said Emily Skor, CEO of Growth Energy. “Biofuel blends, like E15, are already used on the racetrack at Watkins Glen, and if the proposal is approved, drivers will be able to experience the same economic, environmental and performance-enhancing benefits. We appreciate the department’s work on this regulation to reflect federal approval of E15 and we look forward to working with retailers across the Empire State to quickly get E15 into the market.”

“E15 represents an exciting opportunity for New Yorkers to select affordable, clean-burning biofuels produced at plants like ours,” added Timothy Winters, chief financial officer of Western New York Energy. “Back in 2004, we set out with a mission to harness the power of Western New York’s renewable resources to provide consumers with a high-octane, earth-friendly option at the pump. With higher blends like E15 in the marketplace, we can continue to help drivers save money and improve the quality of the air we all breathe, all while creating jobs and growing our local economy.”

 “E15 is a 21st century fuel for 21st century vehicles and is approved for nearly 90 percent of the cars on the road today,” continued Skor. “By increasing biofuel blends, we can reduce our dependence on foreign oil, cut carbon emissions, and limit the need for toxic gasoline additives associated with cancer, water contamination and smog. New York state has long been a pioneer in clean energy, and this proposed regulation change is one more step toward sustainable economic growth for New York communities, farmers, and drivers, as well as a fair and open fuel marketplace.”

According to information published in the state register, a public comment period on the proposed rule will be open for 45 days. Additional information is available on the New York State Register website.

Read the original story: New York Proposes Updated Fuel Regulations Allowing for E15