In the News

Biomass Magazine

October 6, 2015

By Katie Fletcher

The International Energy Agency recently released its annual Medium-Term Renewable Energy Market Report at a Group of 20 leaders’ meeting in Turkey. The report forecasts global market trends and developments for renewable energy and biofuels to 2020.

The MTRMR 2015 indicates that renewable energy will represent the largest single source of electricity growth over the next five years, driven by falling costs and aggressive expansion in emerging economies. Although the report points to the promise renewables hold for affordably mitigating climate change and enhancing energy security, the report warns governments to reduce policy uncertainties that are slowing greater deployment.

“Renewables are poised to seize the crucial top spot in global power supply growth, but this is hardly time for complacency,” said Fatih Birol, IEA Executive Director as he released the IEA’s MTRMR at the G20 Energy Ministers Meeting. “Governments must remove the question marks over renewables if these technologies are to achieve their full potential, and put our energy system on a more secure, sustainable path.”

According to the MTRMR, renewable power expanded at its fastest rate to date—130 gigawatts (GW)—in 2014 and now represents more than 45 percent of overall supply additions. The report attributes the fall in fossil fuel prices over the past years to concerns about the competitiveness of renewables and government willingness to maintain policy support. One policy, the Organization for Economic Cooperation and Development, carries uncertainty. The report states, “Amid generally sluggish demand growth, OECD power systems face challenges to maintain long-term policy frameworks while shifting away from high incentive levels and integrating higher variable renewable penetrations.”

In the report’s executive summary, it states renewable electricity additions over the next five years will reach 700 GW, or more than twice Japan’s current installed power capacity. The report concludes that the share of renewable energy in global power generation will rise to over 26 percent by 2020 from 22 percent in 2013.

This deployment is thought to increasingly shift to emerging economies and developing countries, which will make up two-thirds of the renewable electricity expansion to 2020. China will account for nearly 40 percent of total renewable power capacity growth and require almost one-third of new investment over the next five years.

The MTRMR highlights risks that may be associated with increasing deployment. Financing remains key to achieving sustained investment, and regulatory barriers, grid constraints and macroeconomic conditions pose challenges in many emerging economies.

The report shares that wind leads global renewable growth, followed by solar and hydropower. Meanwhile, other renewable technologies grow slower on an absolute basis, but still scale up significantly. The report gives the example of bioenergy supported by coal-to-biomass conversions in Europe and a significant scale-up in non-OECD Asia using domestic resources. Excluding traditional biomass, the report states global renewable energy use for heat will grow only moderately over the medium term. “While renewable heat technologies can be cost-effective options, an extended period of lower oil prices could undermine growth, particularly in bioenergy markets.”

The report also carries insight on biofuels for transport and renewable heat. “Blending mandates are expected to support biofuels for transport demand and production, even with the lower oil price environment.” The report indicates that, overall, biofuels growth is forecast to stabilize, reaching over 4 percent of road transport demand in 2020. A number of risks limit this growth, however. The U.S. continues to face structural challenges in scaling up ethanol to more than 10 percent of gasoline demand while the EU-28 has introduced a 7 percentage point cap on the contribution of conventional biofuels towards the 10 percent renewable transport target for 2020, according to the report.

The MTRMR notes that significant development of advanced biofuels is necessary for diversification and debarbonization of transport in the long term, particularly in aviation. Since 2013, the report shares that advanced biofuels have made good progress, with nine commercial-scale plants commissioned. Also, policies that mandate blending levels and provide capital incentives, along with the development of secure local feedstock supply chains have been fundamental. The report estimates new projects may require oil prices around $100/bbl or above to be attractive.

The executive summary of the MTRMR concludes, while energy security and local sustainability concerns prove a first-order motivation for adopting enhanced policies, the improving affordability of renewables can have positive ramifications for global climate change negotiations.

Read the original story: IEA Releases Mid-Term Forecast for Biofuels, Renewable Energy

Find a full copy of the executive summary here or more information at the IEA website here.

U.S. Capitol

Ethanol Producer Magazine

Oct 1, 2015

By Ann Bailey

The Senate Banking Committee has defeated an amendment that would have eliminate corn-ethanol blending targets under the renewable fuel standard (RFS).

The amendment introduced by Sen. Pat Toomey, R-Penn., was defeated Oct. 1 by a vote of 7-15. Toomey attempted to add the American Crude Oil Export Equity Act which would lift the U.S.’s ban on oil exports.

“It is no surprise that Senator Toomey’s amendment failed – it never had a chance of passing,” said Tom Buis, Growth Energy CEO. “Similar to legislation he has introduced before, it did not gain any traction and failed because this legislation only restricts consumer choice and attempts to dismantle a successful American industry that is creating jobs, improving our environment and reducing our dependence on foreign oil.

“The simple fact is that the RFS has bipartisan support and it has been the most successful energy legislation this nation has enacted in over 40 years.”

The Renewable Fuels Association said that consumers can breathe a sigh of relief when they fill up at the gas pump because the defeat of the amendment ensures that ethanol will remain the No. 1 source of renewable fuel in the world, said Bob Dinnen, RFA president and CEO.

“The committee understood the writing is on the wall when it comes to the RFS, and that legislative proposals that seek to purportedly “fix” the statute are nothing more than political gamesmanship. “When Congress passed the RFS, it did so with the intention of stabilizing and growing the biofuels market.

“The committee rightly rejected the amendment by Sen. Toomey because it would have done nothing more than squelched investment and created uncertainty in the market, and thereby would have had a detrimental impact on the energy and economic future of generations to come.”

American Coalition for Ethanol Executive Vice President Brian Jennings called it gratifying that a majority of Republicans and Democrats on the Senate Banking Committee want the RFS to remain the law of the land.

“Perhaps today’s vote can help EPA understand that they need to set blending targets that reflect the statute instead of riding the brakes on the RFS because of so-called E10 blend wall concerns,” Jennings said.

Read the original story here : Amendment To Eliminate Corn-Ethanol Blending Defeated

Amy Klobuchar small

The Hill

October 2, 2015

By Devin Henry

A group of senators is pushing the White House to issue a strong mandate for ethanol fuel.

Fourteen senators — a mix of Republicans and Democrats, many from ethanol-producing Midwestern states — met with White House Chief of Staff Denis McDonough on Thursday to make their case for an aggressive new ethanol mandate under the Renewable Fuel Standard (RFS). 

The Environmental Protection Agency (EPA) rankled many ethanol producers in May when it proposed increasing the amount of biofuel it wants mixed into the gasoline supply, but at levels below those set by Congress in 2007. 

The EPA is due to finalize three years of RFS targets by the end of November, and ethanol allies in Congress and the energy industry want the White House to increase the mandate. 

“The last thing we should be doing is throwing the brakes on the progress we’ve made by rolling back the Renewable Fuel Standard,” Sen. Amy Klobuchar (D-Minn.), who helped organize the McDonough meeting, said in a statement. 

“The future of the biofuels and advanced biofuels industries depend on a rule that provides stability and predictability.”

The ethanol mandate is a contentious subject in the fuel industry and in Congress. Ethanol producers slammed the EPA’s proposed targets in May for being too low, while oil producers and refiners said they’re already mixing as much ethanol as is possible into the gasoline supply.

Several lawmakers want to end the ethanol mandate entirely. Sen. Pat Toomey (R-Pa.), among the RFS’s biggest critics in Congress, tried attaching a repeal of the mandate to a bill lifting the ban on crude oil exports during a committee meeting on Friday, but that effort failed. 

The mandate’s defenders — a mix of environmentally inclined Democrats and Midwestern lawmakers — say the rule is important for both reducing carbon emissions from the transportation sector and supporting the ethanol industry in agricultural states. 

Three Republican senators from Iowa and South Dakota joined 11 Democrats at the White House meeting on Thursday. 

“When lawmakers from both sides of the aisle, representing states all over the country, come together to share a common concern, that really means it is time to listen,” Sen. Dick Durbin (D-Ill.) said in a statement. “And I hope the Administration does.”

Read the original story here: Senator Push White House on Ethanol Mandate

Iowa Farmer Today

Sept 26, 2015

By Sebastien Pouliot and Bruce Babcock

The EPA’s justification for proposing to reduce ethanol mandates in the Renewable Fuel Standard is that consumer demand for ethanol is not high enough to meet the original targets.

About 13.7 billion gallons of ethanol can be consumed in E10, which contains 10 percent ethanol. The original mandate for conventional biofuel (widely assumed to be corn ethanol) was supposed to increase to 15 billion gallons in 2016. This would require that 1.3 billion gallons of ethanol would need to be consumed in gasoline-ethanol blends that contain more than 10 percent ethanol.

The two blends that contain more than 10 percent ethanol approved for sale are E15 and E85. The number of stations that sell E15 is currently quite small, whereas almost 3,000 stations sell E85. Thus, EPA focuses on the contribution of potential E85 sales to make its claim that there is insufficient demand for ethanol to support a mandate of 15 billion gallons.

The EPA writes in its proposed rule: “Thus, we believe it is possible for the market to reach volumes perhaps as high as 600 million gallons under favorable pricing conditions.”

Adding this 600 million gallons to 13.7 billion gallons of ethanol consumed in E10 means the EPA believes a maximum of 14.3 billion gallons of ethanol can be consumed in the United States. This is why the EPA proposes to reduce mandates for the non-advanced biofuel from 15 to 14 billion gallons in 2016.

Estimation of the demand for E85 requires data matching various E85 price levels with the corresponding amount of E85 sales.

A rich source of data was provided to us that we used to estimate directly the proportion of U.S. owners of flex vehicles who buy E85 at various price points. The data contains daily station fuel sales and prices of a major Midwest chain of retail gasoline outlets.

We report on how owners of flex vehicles in two metropolitan areas respond to changes in the price of E85 and extrapolate the results to the national level. Perhaps uniquely, this chain’s aggregate market share in these two metro areas was much greater than 90 percent, thus allowing us to estimate the proportion of owners of flex vehicles in the area who chose to switch from E10 to E85 at various price levels.

Using these new direct estimates of consumer demand, we find that owners of current flex vehicles in all U.S. metro areas would consume 250 million gallons of E85 if it was priced at parity on a cost-per-mile basis with E10, and 1 billion gallons of ethanol if E85 were priced to save drivers 23 percent on a cost-per-mile basis.

These estimates assume no new E85 stations are installed. If new stations were installed so drivers in metro areas had the same driving distance to an E85 station, as drivers do in one of our study areas, then more than 1 billion gallons of ethanol would be consumed in E85 in U.S. metro areas if E85 were priced to save FFV drivers 10 percent on a cost-per-mile basis.

These estimates significantly understate total U.S. E85 consumption because consumption in non-metro areas is not included.

Our results show that meeting the original 15 billion gallon RFS ethanol target in 2016 is feasible. The two key conditions needed to meet this consumption level are to allow the market for RINs to work as intended, which will allow the price of E85 to fall to induce consumers to buy the fuel, and for EPA to set a consistent policy signal to industry that they will indeed have to meet this target. A clear and consistent message from EPA is needed to foster investment in fueling stations that will allow enough consumers to access E85.

Comments are from an executive summary of a study by economists at Iowa State University. Sébastien Pouliot is assistant professor of economics and Bruce A. Babcock is professor of economics and Cargill Chair of Energy Economics and is director of the Biobased Industry Center at ISU.

Read the original story here : E85 Makes Original RFS Target Feasible

Read the study here

Ethanol Producer Magazine

Sept 22, 2015

By Sussanne Retka Schill

Senate democrats introduced a national energy bill Sept. 22 that they says offers a pathway to a cleaner energy future and economy.  The American Energy Innovation Act of 2015 takes a multi-faceted approach, dealing with a number of issues and sectors including electrical generation, energy efficiency, alternative fuels, clean energy research, energy cybersecurity.

Several provisions discussed in the bill summary are of interest to the existing biofuels industry.

Under a section title Clean Fuel Production Credit, a 10 year production credit would be available for facilities in 2018, starting that year for those built earlier, as well as those put in service after it takes effect. The bill also creates a technology-neutral incentive for the domestic production of renewable transportation fuels, based on lifecycle carbon emissions.  “Fuels begin receiving incentives if their lifecycle emissions are at least 25 percent less than the U.S. nationwide average in 2015. Zero and net-negative emission fuels quality for the maximum incentive of $1 per energy equivalent of a gallon of gasoline,” the summary details.  

Another provision in that section allows fuels using similar feedstocks and production pathways to be grouped together by the U.S. EPA and requires new pathways be given provisional guidance with a year of the initial request for approval and final guidance no later than two years later.  

The American Energy Innovation Act would also repeal repeal tax incentives for major integrated oil companies such as foreign tax credits, domestic manufacturing deduction, expensing intangible drilling and others.

Earlier, in July, U.S. Sens. Lisa Murkowski, R-Alaska, and Maria Cantwell, D-Wash., introduced a broad, bipartisan energy bill. Focused on a wide range of national energy opportunities and challenges, the Energy Policy Modernization Act of 2015 features five titles reflecting common ground on energy efficiency, infrastructure, supply, accountability, and land conservation. Versions of some of the provisions contained in that act appear in the newly introduced democratic-sponsored bill.

Read the original story here : Senate Democrats Introduce Comprehensive National Energy Bill

Novozymes

September 22, 2015

Today, Novozymes announced the launch of a new enzyme for ethanol producers who want to reduce their use of chemicals without sacrificing yield.

Liquozyme LpH is an alpha-amylase effective at low pH that thins the mash by breaking down starch into shorter dextrin chains. A more fluid mash ensures more efficient operational performance for ethanol producers running their production at low pH.

Plant trials have shown improved viscosity levels and liquefaction, enabling customers to reduce their use of chemicals for pH adjustment.

“We were really pleased by our recent trials,” says Peter Halling, Vice President for Biofuels at Novozymes. “Ethanol producers can reduce dosing of both ammonia and sulphuric acid during the cook process. This saves costs and ensures a safer working environment.

More innovation for the ethanol industry
Liquozyme LpH is the latest addition to Novozymes’ range of enzyme products for the ethanol industry, and there is more to come.

“Novozymes will continue to develop new technology for the ethanol industry,” says Peter Halling. “We will expand our portfolio further towards the end of the year with a new innovation”.

Read the original story: New Enzyme for Ethanol Producers Reduces Use of Chemicals and Saves Costs

Biomass Magazine

September 17, 2015

By Anna Simet

Nearly two dozen top executives from the advanced and cellulosic biofuels industry recently sent a letter to President Obama regarding the U.S. EPA’s renewable fuel standard (RFS) volume requirement proposal, four of whom spoke during a Sept. 16 conference call to discuss its message.

In the letter and during the call, it was emphasized that the May 29th proposal represents a broken promise that is negatively impacting investments and partnerships in advanced biofuels, is sending projects and jobs overseas, and is at odds with the president’s initiatives to combat climate change.

“As you know, the point of the RFS was to require oil companies to buy and sell an increasing amount of renewable fuel to address the fact that the oil industry would otherwise use its market position to cut off market access for competitors and thereby smother investment in cellulosic ethanol and advanced biofuels that have the lowest carbon footprint in the world,” the letter reads. “And yet, for the first time in RFS history, EPA is proposing to change the rules in the middle of the game to allow challenges related to the “distribution” of renewable fuel by oil companies – i.e. the oil industry’s refusal to buy and distribute low carbon, renewable fuel and its willingness to block brand-licensed gasoline retailers from selling higher renewable content blends under their branded canopy to be cause for waiving the RFS on a year-to-year basis. Such a provision would gut the core concept behind the law.”

During the call, Adam Monroe, North American president of Novozymes, said discussed how the RFS was originally set up—participants who chose not to comply were required to purchase RINs. “Basically it rewards those who behave the way the law intended, and penalizes who don’t,” he said. “What has happened with the proposal is that it has turned this whole mechanism on its head, in that those who don’t want to participate are actually rewarded.”

He said the proposal is driving investors away, and commented that it seems pointless to implement the Clean Power Plan when altering the RFS would increase carbon emissions by 25 million metric tons per year, the equivalent of nine coal-fired power plants.

Poet-DSM President Dan Cummings remarked that the RFS has experienced great success over the past 10 years, and as a result, the joint venture invested $275 million to build one of the world’s first commercial-scale cellulosic ethanol plants now operating in Emmetsburg, Iowa. “As we see the proposal moving forward, it has chilled the outlook for us, for further investing,” he said. “We have a network of an additional 25 plants in the U.S. that are eligible to further adapt this technology….but we’re struggling.”

Cummings said Poet-DSM is looking more overseas, particularly in Europe, and discussing licensing the technology there and in other parts of the world as well. “That’s a message I’ve been hearing, now everyone is looking outside of the U.S., due to uncertainly in the market.”

Enerkem CEO Vincent Chornet echoed Monroe’s and Cummings’s statements, adding that the company, which has invested $400 million in its municipal solid waste-to-ethanol and –methanol technology and has a full-scale, commercial plant up and running and making money, isn’t prioritizing projects in the U.S. anymore. “It’s unfortunate, because we’ve viewed the RFS as the gold standard of renewable fuel standards globally—it’s an outstanding piece of legislation and well designed, and it’s unfortunate that the rules may be changing…”

Chris Standlee, executive vice president of global affairs at Abengoa Bioenergy, which owns and operates 15 commercial-scale biorefineries on three continents and is nearing 900 MMgy per year of ethanol production, said that because of the RFS, Abengoa now permanently employs 500 in the U.S. and has invested over $2 billion in developing its eight U.S. production facilities, including a cellulosic pilot plant and one of the world’s first commercial-scale cellulosic ethanol plants in Hugoton, Kansas. “It’s very frustrating for us, and we think just a little but ironic, that the RFS, which is based on the concept of lowering greenhouse gas emissions from motor vehicle fuels, has been undermined by one of the most active administrations in fighting climate change,” he said. “Obama is asking the nation to get behind the Clean Power Plan, but turning his back on only law currently on the books that is directly aimed at climate and clean energy. “

As a result, Abengoa has been forced to change its investment strategy, according to Standlee. He said Abengoa had originally intended to develop other second-generation projects based on the Hugoton model, but is now looking overseas for those opportunities. “While we will continue to purse projects in the U.S., especially from waste-to-biofuels area, we have found interest in U.S. projects from investors and potential partners has been dramatically reduced as a result of the recent proposals.”

Brazil and France are now the most likely locations for the company’s next second-generation projects, Standlee said.

Read original story here: Advanced Biofuel Industry: RFS Proposal Damaging Industry

Duluth News Tribune

September 16, 2015

By Don Davis

Finding gasoline mixed with higher percentages of ethanol soon will be easier for Upper Midwest motorists.

A federal grant is due to help fund 620 new "blender pumps" around Minnesota that can dispense fuels with 15 percent to 85 percent ethanol content. That is third to the number of pumps the federal program will help install in Texas and Florida.

Other area states also are due for aid, including Iowa, with 187 pumps; Wisconsin, 120; North Dakota, 90; and South Dakota, 74. Nearly 5,000 blender pumps will be added across the country.

Nearly 200 million cars and light trucks built in 2001 and later can use the 15 percent blend, known as E15, federal authorities have determined.

Higher blends, such as E85, can be used by nearly 20 million flex-fuel vehicles made in recent years.

"It will not harm your emissions systems ... your engine," said Kevin Hennessy, Minnesota Agriculture Department biofuels manager. "My suggestion is to try it and see if you like it."

Ethanol generally is made from corn.

Most states followed Minnesota's lead in the 1980s and have required that gasoline include 10 percent ethanol, mostly due to its ability to cut pollution. In corn territory, some states have provided funding to help ethanol take off.

Few states have helped add blender pumps, but Minnesota has had a program in operation two years. More than 40 stations in the state have installed 120 pumps.

The U.S. Department of Agriculture grant announcement, to be followed in a couple of weeks with release of specific dollar amounts each state will receive, was greeted with enthusiasm in the corn belt.

"Corn farmers have scored a big point in our ongoing battle with big oil and its efforts to use its deep pockets and lobbying power to block the installation of flex-fuel infrastructure,” said Doug Albin, who farms near Clarkfield, Minn., and leads the Minnesota Corn Research and Promotion Council.

The council is among organizations, along with the state, that will provide money to match the federal grant.

Kelly Marczak of the American Lung Association said the increase in federal, state and private funds to improve the flex-fuel infrastructure demonstrates a strong demand across the country for cleaner, more affordable fuel.

Higher ethanol blends produce higher octane, less pollution and cost less.

Hennessy said that he filled his car's tank with E15 Wednesday morning, paying $2.01 a gallon.

However, while ethanol has benefits, it also produces less energy than pure gasoline and miles per gallon figures usually drop. Hennessy said E15 produces 98.2 percent of the energy of E10.

Existing Minnesota blender pumps are concentrated in the Twin Cities to get the most sales possible, but they also are in a variety of cities around the state including Perham, Pipestone, Bemidji and Willmar, Hennessy said.

The federally funded program also will be focused in the Twin Cities, he said, but it also will help pay for pumps in other parts of the state.

“Access to more pumps should provide consumers with more opportunities to use biofuels in their vehicles if that is their choice," U.S. Rep. Kevin Cramer, R-N.D., said.

At the same time, the congressman added, studying how blended fuel sales go will help government officials determine whether to continue ethanol programs.

Iowa Agriculture Secretary Bill Northey said it is important to build the new infrastructure so Iowans may use more of the ethanol produced in their state.

While the ethanol production plant growth spurt of a few years ago has slowed, two new plants are under construction in the country and others on the drawing boards. One planned plant would be in central South Dakota, where Ringneck Energy hopes to build a $140 million operation.

Ringneck President Walt Wendland is traveling North Dakota, South Dakota, Iowa and Minnesota to find investors. He has helped start two Iowa ethanol plants.

"You want to see those dividends go back into those communities," he said. "I don't want to see large oil companies owning these, or large corporations owning these plants. To me, it's about being able to add value and own a piece of these that's a great model."

Read the original story here: More Ethanol Choices on the Way for Minnesota Region