In the News
Feb 1, 2023
Greenfield Global Inc., Canada’s leading alcohol, solvent and biofuels producer, on Jan. 24 welcomed Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, to Greenfield’s sponsored laboratory space at the University of Alberta to share progress on a $2M agricultural waste-to-clean fuel project funded by Agriculture and Agri-Food Canada under the Agricultural Clean Technology (ACT) Program, Research and Innovation stream.
Greenfield, in close collaboration with the University of Alberta’s Faculty of Engineering, is leading the development of a new clean technology that will convert agricultural waste into renewable diesel fuel. Promoting a circular agriculture economy, this technology has the potential of reducing the overall greenhouse gas emissions in the agricultural and transportation sectors by up to 90 percent when compared to fossil-based diesel fuel.
“Climate change solutions not only help the environment but can also improve the economy and support producers – and projects like this are a great example,” said Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, on behalf of the Honourable Marie-Claude Bibeau. “This new technology will convert agricultural waste to renewable fuel, add value for producers and boost the energy industry, all while reducing greenhouse gas emissions.”
“Our R&D collaboration with the University of Alberta to produce drop-in, renewable diesel fuel from organic waste will allow farming, trucking, construction, standby generators, and other fossil fuel intensive sectors to decarbonize, which is directly aligned with Canada’s climate action plans and helping Canada achieve net-zero emissions by 2050”, said Howard Field, president and CEO of Greenfield Global. “Greenfield has been decarbonizing Canada’s light-duty vehicle emissions for decades, producing fuel ethanol from industrial corn that is blended into gasoline. We are dedicated to the ongoing development of state-of-the-art technology with our partners in research, agriculture, and industry and we appreciate the Government of Canada’s shared commitment and support for innovative and important climate technologies.”
Additional benefits of Greenfield’s technology include being feedstock agnostic and utilizing a spoke-and-hub approach to the collection of feedstocks, production of biocrude, and the refining of biocrude into renewable diesel.
Three key contributors that supported Greenfield’s funding submission process and helped make this project possible were the Canadian Federation of Agriculture, the Ontario Federation of Agriculture, and the Grain Farmers of Ontario. The collaboration of all parties involved will contribute to the successful commercialization of this technology which will produce a sustainable liquid fuel, improve waste management and reduce greenhouse gas emissions.
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Jan 30, 2023
The attorneys general of Iowa, Illinois, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin are urging the Biden administration to take action on petition filed by a bipartisan coalition of governors in April 2022 seeking a permanent solution to year-round E15 sales within their states.
Iowa Gov. Kim Reynolds, Nebraska Gov. Pete Ricketts; Illinois Gov. JB Pritzker, Kansas Gov. Laura Kelly; Minnesota Gov. Tim Walz, North Dakota Gov. Doug Burgum; South Dakota Gov. Kristi Noem, and Wisconsin Gov. Tony Evers April 28, 2022, sent a letter to U.S. Administrator Michael Regan seeking a solution to year-round E15 sales under a provision of the Clean Air Act that allows the governor of any state to request that the 1-psi volatility waiver contained in the statute for gasoline-ethanol blends be removed in the state.
Under federal law, the EPA is required to respond to such a request within 90 days. The agency, however, has not yet responded to the April 2022 request. In a letter to Regan and Shalanda Young, director of the White House Office of Management and Budget, the attorneys general urge the administration “to comply with the law and issue the mandated regulations so that E15 will be available this summer.”
A rulemaking process related to the governors’ request is in progress. The EPA on Dec. 5, 2022, delivered a notice of proposed rulemaking (NPRM) to the OMB related to the petition. OMB review marks a final step before a proposed rulemaking is released for public comment. The OMB also addressed the petition in its 2022 Fall Unified Agenda and Regulatory Plan, which was released on Jan. 4. That unified agenda indicates the EPA is targeting March 2023 for completion of the E15 rulemaking.
The Renewable Fuels Association is also calling on the EPA to respond to the governors’ petition. “It’s been nine months since a group of eight Midwest governors petitioned the Biden administration to ensure lower-cost, lower-carbon E15 would be available year-round in their states,” said Geoff Cooper, president and CEO of the RFA. “By law, the governors’ petition should have been approved by the administration 90 days after it was received, but that never happened. Now, with the 2023 summer driving season just around the corner, these states are tired of waiting. It’s past time for the White House and EPA to follow through on the governors’ petition, and we applaud these attorneys general for their efforts to break the logjam.”
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Jan 26, 2023
Novozymes released 2022 financial results on Jan. 26, reporting a 25 percent increase in bioenergy sales when compared to 2021. Total sales for the company were up 9 percent in 2022 when compared to the previous year.
Novozymes attributed the growth in bioenergy sales to a 2 percent increase in U.S. ethanol production, expanded corn ethanol production in Latin America, and growth in solutions for biodiesel production. Sales of enzymes used in second-generation biofuels production also contributed to the growth, according to the company.
Bioenergy accounted for 21 percent of total company sales last year. Household care; food, beverages and human health; grain and tech processing; and agricultural, animal health and nutrition accounted for 28 percent, 24 percent, 15 percent, and 12 percent of sales, respectively.
Moving into 2023, Novozymes expects additional growth in bioenergy sales to be driven by pricing, market penetration enabled by innovation, capacity expansion of corn ethanol in Latin America and market penetration with enzymatic solutions for biodiesel production. Growth is also expected to be supported to a degree by sales of solutions for second-generation ethanol production. Growth in bioenergy sales is expected to be in the mid- to high-single-digit rate this year. The mid-point range of this growth forecast assumes flat to slightly declining performance in U.S. ethanol production, according to the company.
A full copy of Novozymes’ 2022 report is available on the company’s website.
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Jan 23, 2023
U.S. ethanol production during the fourth quarter of 2022 nearly caught up to pre-COVID levels despite falling energy prices and lower gasoline demand, according to the latest quarterly report released by CoBank’s Knowledge Exchange.
Production was at 15.5 billion gallons on an annualized basis, down slightly from the five-year average. CoBank called the level of production “reasonable” in the context of ending stocks that were approximately 8.5 percent above the five-year average.
Margins for the fourth quarter averaged 27 cents per gallon, up from 25 cents per gallon for the first nine months of last year. Margins were in line with long-run historical averages of 25 cents to 30 cents per gallon, according to CoBank. The report also notes that profitability was well above average in October and November. Higher corn prices and a 12 percent decline in ethanol fuel prices, however, reduced margins in December.
According to CoBank, the ethanol industry is moving into 2023 with some positive tailwinds, including implementation of the Inflation Reduction Act, continued build-out of renewable diesel production capacity, and a continued push for year-round E15 sales in the Midwest.
A full copy of the quarterly report is available on the CoBank website.
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Jan 18, 2023
By Mackenzie Boubin
Ethanol exports for marketing year (MY) 2021/22 totaled 1.45 billion gallons, marking the third largest MY on record, and 230 million gallons above 2020/21’s numbers. This 1.45 billion gallons is valued at $4 billion, and its production required the use of the equivalent of 515 million bushels of corn.
Ethanol remained a robust and diversified market with U.S. ethanol exported to nearly 80 different countries in 2021/22. Total U.S. ethanol exports for 2021/22 were up in eight of the top 10 markets, with Canada, the European Union, Nigeria, Singapore and the United Kingdom all setting records.
Canada was the largest market for U.S. ethanol in 2021/22 with nearly 470 million gallons exported, a 33 percent increase year-on-year and the highest on record. Canada’s recently released Clean Fuel Regulations formalized policy that provides stable demand for biofuels into 2030 and beyond. As a result, the Canadian government anticipates that the country will achieve a 15 percent national ethanol blend rate by 2030 as an avenue to comply with CFR carbon mitigation requirements, up from its current 8 percent national ethanol blend average.
South Korea surpassed India to become the second-largest market for U.S. ethanol in MY 2021/22, totaling 176 million gallons (consuming 62 million bushels), worth $444 million, up 28 percent from MY 2020/21.
The EU was the third largest market for U.S. ethanol in 2021/22, with exports up 60 percent year-on-year, hitting a new record of 140 million gallons exported. U.S. ethanol exports to the UK reached 84 million gallons, an increase of over 600 percent from 2020/21, landing as the sixth largest market for U.S. ethanol exports in 2021/22. Furthermore, as a result of the continued rollout of its national E10 policy and implementation of Renewable Transport Fuel Obligation (RTFO), the UK reached an eight percent national blend average, up from 4.7 percent in 2021.
Utilizing U.S. ethanol as a measure to reduce inflationary pressures, increase human health and contribute to decarbonization efforts is an idea that is resonating throughout the globe as more countries seek to implement higher biofuel standards and utilize ethanol to the fullest potential. These goals are a critical aspect of the U.S. Grains Council’s mission of developing overseas markets for U.S. product, to the benefit of domestic producers and foreign end-users alike.
The USGC’s ethanol staff, along with its ethanol advisory team, have identified key priority and second tier markets to grow demand as a part of the Council’s target of helping U.S. producers export four billion gallons of ethanol by 2025. With growing markets such as Japan, Indonesia, India and Canada, U.S. ethanol is well positioned to deliver an affordable, sustainable, reliable and consistent product to countries looking to immediately reduce transportation emissions and consumer costs.
With many emerging opportunities across the world, the Council’s ethanol team strives to develop access and support educational and informational campaigns to the various stakeholders within the global fuel supply chain.
Building upon the momentum for MY 2021/22, the Council will continue to assist countries in creating their own clean fuel standard or discretionary blend levels that would incentivize ethanol consumption, and display how U.S. ethanol can easily be implemented within existing world infrastructure as a right here-right now solution to carbon mitigation strategies.
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Jan 17, 2023
By Geoff Cooper
In 2022, the U.S. ethanol industry regained the same sort of momentum that fueled its remarkable growth following passage of the Renewable Fuel Standard 17 years ago. Just look at what we were able to accomplish last year: In December, the Environmental Protection Agency proposed RFS volumes through 2025 that provide certainty and an opportunity for growth. The agency also put an end to abusive small refiner exemptions that had decimated RFS demand for years and established a pathway for ethanol to serve as a “biointermediate” feedstock for new applications like sustainable aviation fuel. At the direction of President Biden, EPA also provided emergency waivers allowing the summertime use of E15, while also committing to make E15 more broadly available to consumers across the country by the summer of 2023. At the same time, USDA finalized rules enabling ethanol producers to access $700 million in COVID relief funding and expanded the HBIIP program, providing resources for gasoline marketers wanting to provide E15 and flex fuels like E85 to consumers.
On Capitol Hill, the Inflation Reduction Act adopted in August heralded new tax incentives for sustainable aviation fuels, established a Clean Fuel Production Credit, enhanced the 45Q carbon capture credit, and appropriated another $500 million for higher ethanol blend infrastructure. Other bills that would establish a growing role for high-octane, low-carbon fuels—including the Next Generation Fuels Act—attracted growing support in both parties and both chambers of Congress. In an important development, we also gained a crucial new ally in our work toward making E15 available year-round, the American Petroleum Institute. With the API’s support, we saw the Consumer and Fuel Retailer Choice Act filed in both the House and Senate with momentum building for a permanent solution.
In the marketplace, ethanol production, demand and exports all continued to rebound from the pandemic malaise. That’s real momentum, and the Renewable Fuels Association will continue to build on the successes of last year while we move our industry to new levels this year.
In 2023, RFA will continue to pursue policy and regulatory solutions that provide parity for E15, allowing year-round accessibility for consumers and to reduce costs at the pump. We still believe that the secret to sustained success in the ethanol industry lies in the ability to reduce carbon emissions and pursing policies promoting and incentivizing low carbon fuels at the pump, such as E15, E20/30 and E85.
As exciting as last year’s successes are, RFA and the ethanol industry are poised for even more success in 2023. As we move forward this year, RFA members will continue living our pledge to achieve net-zero carbon emissions by 2050 and lead efforts here and abroad in expanding market opportunities for ethanol. We look forward to showcasing our annual National Ethanol Conference with well-known industry leaders and presenters at the end of February in Orlando. Our conference topics reflect on the past year and the continued momentum going into 2023 with a very appropriate theme—Ready. Set. Go!
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Jan 5, 2023
In December, the International Energy Agency (IEA) – the leading intergovernmental organization that provides policy recommendations, analysis and data on the global energy sector – released its Renewables 2022 Analysis. The report is available for use by countries looking at cases to accelerate their transition to net zero.
Renewables 2022 includes analysis on the renewable energy sector, including developments and trends for transportation, including increasingly ambitious energy targets in the European Union (EU), growth in ethanol consumption in Brazil, biofuel blending in India and global feedstock availability to meet the rise of sustainable aviation fuel (SAF), many topics on which the U.S. Grains Council (USGC) provided review and comment in the run up to its publication.
“In this most recent IEA report, total global biofuel demand is estimated to increase more than 20 percent between 2020 and 2027, and world ethanol consumption is projected to rise in an accelerated case scenario,” said Isabelle Ausdal, USGC manager of global ethanol policy and economics. “This reinforces the U.S. industry’s recognition of ethanol’s importance as a tool for countries to accelerate their greenhouse gas (GHG) emission reductions and underscores the importance of scaling up technologies such as carbon capture, utilization and storage (CCUS) to reach net zero carbon intensity.”
According to IEA’s report, ethanol consumption in Europe is expected to remain steady at 2021 levels, with the most significant growth in the United Kingdom (U.K.) where consumption is projected to expand by more than 50 percent to meet its Renewable Transport Fuel Obligation (RTFO) and national E10 blending. Recognition was also given to the U.K., Finland and the Netherlands for national E10 blending and the increase in popularity of flex fuel vehicles in France.
While remaining steady in the EU, increased ethanol consumption is forecasted to occur largely in emerging economies aiming to reduce oil imports and boost local economies, while also helping to reduce GHG emissions. IEA projects overall demand for biofuel in Brazil to expand by 40 percent between 2022 and 2027, with ethanol accounting for 70 percent of this change. This is attributed to Brazil’s ethanol mandate, discretionary blending, RenovaBio program and increasing gasoline demand.
Grain-based ethanol production capacity in India is currently not adequate to supplement sugar-based ethanol to meet demand and IEA predicts it will meet only E12 using exclusively domestic production within the next few years. Otherwise, IEA forecasts that India will meet its E20 demand in an accelerated scenario through expanding grain-based ethanol production capacity, allowing imports and addressing vehicle compatibility issues. India estimates grain-based ethanol will provide 46 percent of its supplies by 2025 or 2026.
As demand increases at the country level, global demand for SAF also increases. Due to this boom in aviation demand, IEA expects the world will see a feedstock crunch. Additional pressure will be added as the EU extends limits on the number of eligible supplies. Ethanol was highlighted as a viable feedstock in SAF production to backfill the soaring demand for wastes, oils and fats. The U.S. was identified as the country with the most significant growth potential for SAF production, assuming policies will favor SAF over renewable diesel.
“Policies are the main drivers of biofuel and renewable energy use. With consistent and progressive implementation, IEA’s accelerated scenarios can help countries expedite their progress to meet their 2030 climate targets and beyond,” Ausdal said. “The IEA is a global policy force in the movement toward a net-zero energy future. We greatly value their insights and partnership in contributing to a report so widely respected. The Council looks forward to continued collaboration and the representation of ethanol in the renewable energy future.”
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Jan 12, 2023
The USDA maintained its forecast for 2022-’23 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released Jan. 12. The agency also maintained its forecast for season-average corn prices.
According to the USDA, this month’s 2022-’23 U.S. corn outlook is for reduced production; food, seed and industrial use; feed and residual use; exports; and ending stocks. Corn production is estimated at 13.73 billion bushels, down 200 million as an increase in yield is more than offset by a 1.6 million acre cut to harvested area. Total corn use is reduced 185 million bushels to 13.915 billion. Exports are reduced 150 million bushels to 1.925 billion, reflecting the slow pace of shipments through December, and the lowest level of outstanding sales as of early January since the 2019-’20 marketing year.
Food, seed and industrial use is lowered 10 million bushels, with reductions in corn used for starch, glucose and dextrose. Feed and residual use is down 25 million bushels to 5.275 billion, based on indicated disappearance during the September-November quarter as reflected by the agency’s Grain Stocks report. With supply falling more than use, 2022-’23 corn stocks are lowered 15 million bushels. The season-average corn price received by producers is unchanged at $6.70 per bushel.
The USDA has maintained its forecast for 2022-’23 corn use in ethanol at 5.275 billion bushels. An estimated 5.326 billion bushels of corn went to ethanol production in 2021-’22, up from 5.028 billion bushels in 2020-’21.
Foreign corn production is forecast down with declines for Argentina and Brazil partly offset by an increase for China. Production is reduced for Argentina reflecting declines to both area and yield, as heat and dryness during December and into early January reduced yield prospects for early-planted corn in key central growing areas. Brazil corn production for 2022-’23 is cut reflecting dry conditions for first-crop corn in parts of southern Brazil. China corn production is higher based on the latest area and yield data from the National Bureau of Statistics.
For 2022-’23 global trade, the USDA expects increased corn exports for Ukraine and reductions for Argentina and the U.S. For 2021-’22, Argentina’s exports for the marketing year beginning March 2022 are lowered based on observed shipments to date, while Brazil is raised. Corn imports for 2022-’23 are lowered for Vietnam and Peru. China’s corn feed and residual use is raised based on a larger crop and lower sorghum imports. Foreign corn ending stocks are down, mostly reflecting reductions for Ukraine, Brazil, Pakistan, and Paraguay with a partly offsetting increase for China. Global corn stocks, at 296.4 million tons, are down 2 million.
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Jan 11, 2023
U.S. fuel ethanol production rebounded by 12 percent the week ending Jan. 6 after falling to a nearly two-year low the previous week, according to data released by the U.S. Energy Information Administration on Jan. 11. Stocks of fuel ethanol were down 3 percent.
Fuel ethanol production averaged 943,000 barrels per day the week ending Jan. 6, up 99,000 barrels per day when compared to the 844,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Jan. 6 was down 63,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 23.8 million barrels the week ending Jan. 6, down 644,000 barrels when compared to the 24.444 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Jan. 6 were up 889,000 barrels.
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Jan 9, 2023
The government of Japan is inviting comments on proposed biofuel standards for fiscal years 2023 through 2027. The proposal also includes updated carbon intensity (CI) values for both U.S. corn-based ethanol and Brazilian sugarcane-based ethanol, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network on Jan. 3.
Japan’s current biofuel target for transportation is set to expire on March 31, 2023. In late December, Japan’s Ministry of Economy, Trade and Industry (METI) proposed an update that was developed following four expert committee meetings held during the second half of 2022, according to the report
METI is proposing to maintain the annual target volume for transport biofuels at 500 million liters (132.09 million gallons) crude oil equivalent for Japan's fiscal years 2023-2027. The report indicates that consumption of next generation biobased ethanol and sustainable aviation fuel (SAF) would count towards that target. METI also aims to set an annual target volume for next generation ethanol at 10 million liters of crude oil equivalent starting in fiscal year 2028.
Under the proposal, METI plans to keep the current greenhouse gas (GHG) emissions target at 55 relative to gasoline until the ministry updates the default CI value of gasoline. That update is expected to take place during fiscal year 2023. Following that update, the METI plans to increase the GHG reduction target for transport biofuels to 60 percent of the gasoline GHG value, according to the report.
In addition, METI is proposing to update the default CI values for ethanol to 37.1 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) for U.S. corn-based ethanol and to 28.56 gCO2e/MJ for Brazilian sugarcane-based ethanol. The values are currently set at 43.15 gCO2e/MJ and 33.61 gCO2e/MJ, respectively.
METI is accepting comments on the proposal through Jan. 17. According to the report, comments must be submitted in Japanese. METI will consider the comments and issue an updated proposal, which will also be subject to a public comment period.
A full copy of the report can be downloaded from the USDA FAS GAIN website.
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Jan 9, 2023
A new survey of registered voters shows robust support for ethanol and the Renewable Fuel Standard, while also revealing significant opposition to policies that ban liquid fuels or mandate electric vehicles. The poll was conducted for the Renewable Fuels Association by Morning Consult.
“As the new Congress settles in and begins to consider the future of our nation’s energy policy, these polling results demonstrate that Americans strongly support expanded use of lower-cost, lower-carbon renewable fuels like ethanol,” said RFA President and CEO Geoff Cooper. “Voters clearly want greater access to fuel blends containing more ethanol—like E15, E30, and E85—and they want to see more flex fuel vehicles made available. These results also make it apparent that Americans strongly oppose policies that would limit the availability of liquid-fueled vehicles or effectively force them to purchase electric vehicles. Overall, this survey is a strong indication that consumers understand and appreciate the environmental advantages, energy security benefits, and affordability that ethanol offers.”
According to the survey:
- Nearly two-thirds of survey respondents (65 percent) support the Renewable Fuel Standard, while only 15 percent expressed opposition to the program.
- Meanwhile, 64 percent of respondents have a favorable opinion of ethanol, compared to just 18 percent unfavorable.
- Regarding higher blends, 68 percent support increasing the availability of E15 to help lower fuel prices and bolster energy independence, and 66 percent said it is important for the federal government to promote the production and sale of flex fuel vehicles (capable of running on up to 85% ethanol) in the United States.
- Three out of five (60 percent) respondents support the Next Generation Fuels Act, which would drive the use of more efficient, lower-carbon liquid fuels like E25 or E30, compared to just 18 percent who oppose such legislation.
- By a margin of nearly 3 to 1 (52 percent to 19 percent), voters support efforts to sequester carbon dioxide using underground pipelines.
Notably, Cooper said, support for ethanol and renewable fuels policy crossed party lines and includes majorities of both Republican and Democrat respondents.
The poll also found strong doubts about some policy proposals regarding electric vehicles, particularly those that eliminate consumer choice and options when it comes to vehicle purchases. Key results:
- Half (50 percent) of respondents said they were not interested in purchasing or leasing an electric vehicle in the next three years, while 42 percent expressed interest. Another 8 percent had no opinion.
- Nearly four out of five (77 percent) of voters say it is important for automakers to disclose (to potential buyers) the emissions impacts of the electricity used to power electric vehicles. Only 12 percent said transparent emissions information isn’t important.
- Two-thirds (66 percent) oppose policies that ban the sale of new cars with traditional liquid-fueled engines, with only 23 percent supporting such policies.
- Seven out of 10 respondents (69 percent) oppose EV mandates, with 54 percent expressing “strong” opposition.
- Meanwhile, 58 percent support federal funding for charging infrastructure and tax credits for electric vehicles.
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Jan 4, 2023
The White House Office of Management and Budget on Jan. 4 published its 2022 Fall Unified Agenda and Regulatory Plan, confirming the expected timeline on federal rulemakings related to the Renewable Fuel Standard, E15 sales and the Biopreferred program.
According to the agenda, the U.S. EPA is still expected to finalize its RFS “set” rule by June 2023, as required as part of a consent decree filed with the U.S. District Court for the District of Columbia. The proposed rule, released on Dec. 1, 2022, aims to set renewable volume obligations (RVOs) for 2023, 2024 and 2025. It also addresses the generation of electric renewable identification numbers (e-RINs) from eligible sources of biomass-based electricity. A comment period on the rulemaking is open through Feb. 10.
The EPA is also expected to finalize a rulemaking that would allow year-round sales of E15 in several Midwestern states in March 2023, according to the agenda. The agency in early December delivered a proposed rule to the OMB related to a petition filed by several Midwest governors seeking a solution to year-round E15 sales in their states. A summary published by the OMB explains that the proposed rule “implements a provision in the Clean Air Act which provides that a governor of a state may request that the 1-psi volatility waiver provided in the statute for gasoline-ethanol blends be removed in the state.” The agency said it has received such a request from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.
According to the agenda, the USDA is also working to complete a rulemaking of interest to the bioenergy and biorefining sector. The agency is expected to release a notice of proposed rulemaking in February related to its Biobased Markets Program (Biopreferred). The action will add 2018 Farm Bill provisions to the program, specifically proposing to codify program guidance into the regulations. The rulemaking is expected to reduce burden on both the applicants and the agency by reducing requirements, clarifying requirements, streamlining the application and certification process, and increasing efficiencies in program delivery.
Additional information on the Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions is available on the OMB website.
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Jan 3, 2023
The government of Brazil on Dec. 23 announced it will extend its suspension of the import tariff on ethanol through at least the end of January. The Renewable Fuels Association is calling the extension “a positive first step toward a permanent resolution.”
Brazil in March 2022 announced that it would waive its import tariff on ethanol through the end of 2022 in an effort to alleviate inflationary pressures resulting from the pandemic, which were further aggravated by Russia’s invasion of Ukraine. That tariff was previously set at 18 percent.
“We are pleased that the Brazilian government has extended the suspension of its import tariff on ethanol,” said Geoff Cooper, president and CEO of the RFA. “This is a positive first step toward a permanent resolution and it sends a favorable signal to the marketplace. As we look ahead to 2023, we stand ready to work with incoming President Lula da Silva and his administration to restore free and fair ethanol trade between our nations. As the world’s leaders in the production and use of low-carbon ethanol, we must set an example of free trade and open markets for other nations to follow.”
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Dec 22, 2022
The Renewable Fuels Association’s annual review of vehicle owner’s manuals and warranty statements indicates that E15 is explicitly approved by the manufacturer for use in the vast majority of model year 2023 cars and light trucks. Notably, for the first time, Mitsubishi lists E15 as an approved fuel in some of its 2023 vehicles. The U.S. Environmental Protection Agency has approved the use of E15 in all vehicles built in 2001 or later, representing more than 96 percent of the vehicles on the road today, but automakers only began listing E15 as a recommended fuel in 2012.
According to the RFA analysis of model year 2023 vehicle owner’s manuals and warranty statements and current market share data, more than 94 percent of new light-duty gasoline vehicles are explicitly approved by the manufacturer to use E15. Only Mercedes-Benz, Mazda, and Volvo do not list E15 as a recommended fuel in their owner’s manuals, even though E15 is legally approved by EPA for use in all vehicles built since 2001. Mitsubishi lists E15 as an approved fuel for the 2023 Outlander, but the fuel does not appear in owner’s manuals for other models.
Notably, BMW and Mini continue to approve the use of gasoline containing up to 25 percent ethanol in their vehicles. New for 2023, Toyota’s GR Supra—co-developed with BMW—also follows suit by allowing E25.
When it comes to the E85 Flex Fuel blend, however, the story remains vastly different. Far fewer models are reported available as flex-fuel vehicles, or FFVs, that run on fuel blends containing up to 85 percent fuel ethanol. As was the case in 2022, only Ford and General Motors now offer FFVs in the United States, most of which are for fleet purchases only. For model year 2023, the only FFVs available to consumers are select Ford Explorer, F-150 and Transit models. As recently as model year 2015, more than 80 different FFV models from eight manufacturers were available to consumers.
“We’re happy to see automakers continuing to embrace lower-cost and lower-carbon E15,” said RFA President and CEO Geoff Cooper. “As we saw throughout 2022, higher blends of ethanol provide great value to drivers and are better for the environment, the climate and public health. Today’s ethanol reduces greenhouse gas emissions by half compared to gasoline, and we’re well on the way to net-zero ethanol. As great as the support is for E15, American consumers need more options at the gas pump, and we will continue to encourage automakers and the Biden administration to recommit to FFV production to help us reach carbon neutrality by mid-century, and to provide drivers a practical and affordable high-performing fuel option.”
At present, more than 5,600 gas stations sell E85 and other flex fuels in the United States, and over 2,800 offer E15. Click here for locations and a price tracker, and click here for more information on ethanol blends.
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Dec 21, 2022
In Panama City, Panama, U.S. Grains Council staff in Latin America and the Caribbean (LTA) participated in the VII Energy Week organized by the Latin American Energy Organization (OLADE), the Energy Secretariat of Panama and the Inter-American Development Bank (IDB), in collaboration with EnergyNet.
Delegates from more than 21 countries attended the event, the most relevant in the region, to discuss energy-related topics, including governments, companies, academia and international agencies. Issues highlighted in this year’s Energy Week edition included innovation in the energy sector; access and efficiency; sustainable energy development; renewable energies; regional security; and integration mechanisms.
Juan Sebastian Diaz, USGC Latin America regional ethanol consultant, participated in the “Sustainable Mobility” session to discuss opportunities and challenges facing biofuels and electromobility in the region. Diaz was joined on the panel by representatives from the International Renewable Energy Agency (IRENA), the IDB, U.N. Environment Programme, the World Bank (WB) and the Inter-American Institute for Cooperation on Agriculture (IICA).
“During the panel, the Council was able to demonstrate that biofuels, and particularly ethanol, are still valid within the region as one of the most efficient and easily accessible mechanisms to meet the international call to decarbonize the transportation system in their respective countries,” Diaz said. “We highlighted the momentum that Central America is having by embracing biofuels programs in the near future and encouraged the audience to expand ethanol usage based on their current capabilities.”
According to OLADE, the transportation sector in Latin America and the Caribbean is responsible for nearly 22 percent of the emissions of short-lived climate pollutants and represents 15 percent of total greenhouse gas (GHG) emissions. If the trend scenario continues, it is estimated that GHG emissions will increase by 50 percent by 2050. Transportation is one of the primary sources of air pollution in cities, strongly impacting public health.
In this sense, biofuels, especially ethanol produced from corn, emerge as a sustainable option to provide efficient fuel and help reduce carbon dioxide (C02) emissions in the transportation sector. The Council has a regional incidence strategy in the area to promote public policies favorable to biofuels, as well as to achieve higher blends of ethanol mixed with gasoline and reduce trade barriers to the entry of U.S. ethanol.
“We believe the Council’s participation in this important event helps create awareness of government officials in the region about the role of biofuels in the energy transition,” Diaz said. “During the panel, attendees agreed that ethanol is a simple, practical and economical way to decarbonize the region’s transportation system.”
The Council engages governments and industries across the Latin America and Caribbean region to develop the ethanol market and promote sales of U.S. ethanol. USGC ethanol promotion efforts focus on at least four areas, including demonstrating the environmental and human health benefits of ethanol; working with local leaders to develop biofuels policies with a role for trade; addressing trade barriers and logistical constraints to imports; and showing ethanol’s value as a source of octane.
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Dec 20, 2022
The U.S. EPA on Dec. 20 released a final analysis on the price of renewable identification numbers (RINs) and small refineries in response to a recommendation included in a recent U.S. Government Accountability Office report. The final analysis confirms the EPA's conclusion that small refineries recover their Renewable Fuel Standard compliance costs in the price of gasoline and diesel that they sell.
The GAO in November released a report on the RFS small refinery exemption (SRE) program, claiming that its analysis determined that the EPA does not have assurance that its decisions about SREs are based on valid information. The report also claims that the EPA and DOE do not have policies and procedures specifying how they are to consult about and make exemption decisions. Representatives of the ethanol industry slammed the report, calling it shoddy and obsolete.
Within the report, the GAO makes seven specific recommendations related to the SRE program. One of those recommendations calls on the EPA to reassess its conclusion that all small refineries recover their compliance costs in the price of the gasoline and diesel they sell, including by fully examining and documenting RIN market performance and RIN pass-through in all relevant fuel markets.
The EPA on Dec. 20 released its response to that recommendation. EPA said it has completed a final analysis that “resolves this recommendation and confirms EPA’s preliminary results from its initial analysis and explanation provided to GAO, which is included in Appendix IV of the GAO report.”
As part of its final analysis, the EPA analyzed more than 2.2 million RIN transactions, accounting for 140 billion RINs, for companies that traded separated RINs for conventional renewable fuel (D6) and biomass-based diesel (D4). The analysis covered approximately 43 percent more RIN transactions than were analyzed in a recent GAO report. The transactions include RIN price data for 24 small refineries that purchased and/or sold RINs as separate facilities. All 24 of those small refineries have submitted SRE petitions to the agency for at least one RFS compliance year.
According to the EPA, its analysis found that on average, these 24 small refineries paid 1.1 percent, or 1.2 cents, more per RIN when buying separated RINs when compared to the average daily price and 0.5 percent, or 0.6 cents, more per RIN than the largest 20 refiners.
A full copy of the final report is available on the EPA website.
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