In the News
Aug 8, 2023
The U.S. exported 111.91 million gallons of ethanol and 949,904 metric tons of distillersgrains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 8. Year-to-date exports of both products are down when compared to the same period of 2022.
The 111.91 million gallons of ethanol exported in June was down slightly when compared to the 113.19 million gallons exported the previous month, but up when compared to the 98.88 million gallons exported in June of last year.
The U.S. exported ethanol to nearly three dozen countries in June. Canada was the top destination for U.S. ethanol exports at 50.81 million gallons, followed by the Netherlands at 15.75 million gallons and the U.K. at 13.54 million gallons.
The value of U.S. ethanol exports fell to $312.82 million in June, down slightly from both $319.41 million in May and $316.26 million in June 2022.
Total U.S. ethanol exports for the first six months of the year reached 704.9 million gallons at a value of $1.92 billion, compared to 795.63 million gallons exported during the same period of 2022 at a value of $2.19 billion.
The 949,904 metric tons of distillers grains exported in June was down when compared to both the 958,385 metric tons exported the previous month and the 1.06 million metric tons exported in June 2022.
The U.S. exported distillers grains to approximately three dozen countries in June. Mexico was the top destination for U.S. distillers grains exports at 189,364 metric tons, followed by Vietnam at 112,176 metric tons and Indonesia at 92,083 metric tons.
The value of U.S. distillers grains exports fell to $304.55 million in June, down from both $319.11 million in May and $326.67 million in June of last year.
Total distillers grains exports for the first half of 2023 reached nearly 5.12 million metric tons at a value of $1.69 billion, compared to 5.7 million metric tons exported during the same period of last year at a value of $1.7 billion.
Additional data is available on the USDA FAS website.
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Jul 26, 2023
The IEA has presented key findings from its new report, Biofuel Policy in Brazil, India and the United States – Insights for the Global Biofuel Alliance. This was done at a special meeting of government ministers who convened at the G20 Energy Transitions Ministerial Meeting, which identified Fuels for the Future as a priority area.
The event in Goa, India, was opened by India’s Minister for Petroleum and Natural Gas Hardeep Singh Puri. More than a dozen energy ministers participated, with representation from Argentina, Bangladesh, Brazil, Canada, India, Italy, Kenya, Mauritius, Paraguay, Seychelles, the United Arab Emirates, Uganda and the United States. The heads of nine international organisations also took part in the event.
The meeting included discussions on India’s proposed Global Biofuel Alliance, which seeks to accelerate sustainable biofuels deployment in support of the global energy transition. Participants acknowledged the critical role sustainable biofuels can play in reducing greenhouse gas emissions.
The IEA estimates that global sustainable biofuels production would need to triple by 2030 to put the world’s energy system on track towards net-zero emissions by 2050. Liquid biofuels provided more than 4% of total transport energy supply in 2022, but their deployment is not accelerating fast enough. Moreover, more than 80% of total biofuel production occurs in just a few countries, despite vast unlocked potential in many parts of the world. Deployment is constrained by challenges such as the availability of the feedstock used to make biofuels, the lack of consensus on sustainability criteria, and the pace at which related technology has been commercialised.
The new IEA report is aimed at guiding the Alliance's efforts to expand biofuel adoption. It suggests that countries can expand sustainable biofuel production and usage by designing long-term strategies, fostering investment, supporting innovation, securing affordable supplies, addressing sustainability concerns promptly, and encouraging international collaboration.
The report outlines three priority areas for the Global Biofuel Alliance to facilitate sustainable deployment in support of the global energy transition:
1. Identifying and helping develop markets with high potential for sustainable biofuels production.
2. Accelerating technology deployment.
3. Seeking consensus on performance-based sustainability assessments and frameworks.
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Jul 31, 2023
Sens. Amy Klobuchar, D-Minn., and Pete Ricketts, R-Neb., on July 27 introduced the Flex Fuel Fairness Act, a bill that aims to provide meaningful incentives for automakers to manufacture flex fuel vehicles (FFVs) in addition to battery electric vehicles.
“The Biden EPA has made a mistake and ignored the proven benefits of flex fuel vehicles that can run higher ethanol blends,” Ricketts said. “Our bill levels the playing field for a proven Nebraska alternative to expensive and burdensome electric vehicles. Nebraskans know biofuels like ethanol are a proven solution that lowers prices for consumers at the pump, is great for our farmers and ranchers, and reduces our dependence on foreign oil.”
The U.S. EPA recently released proposed tailpipe greenhouse gas (GHG) emissions standards for model year (MY) 2027-2032 light-duty vehicles. Once finalized, the proposed standards will require automakers to meet certain tailpipe carbon dioxide emission values, on average, across their fleet of new vehicles. According to information released by Ricketts office, the EPA’s proposed approach for electric vehicles (EVs) assumes that EVs produced by automakers will use only zero-carbon renewable electricity. That approach has been criticized for ignoring the significant GHG emissions associated with critical mineral extraction, EV battery production, and the production and transmission of electricity used to recharge EV batteries. Some estimates indicate the EPA’s proposed standards would require EVs to account for two-thirds of light-duty vehicles within eight years.
The proposed tailpipe emissions rule does not recognize or account for meaningful GHG emissions savings that can be achieved through expanding biofuels use in vehicles designed to accommodate higher blends, including FFVs. According to Ricketts office, for the purpose of determining GHG tailpipe emissions compliance performance values, FFVs capable of operating on E85 should be assumed to operate on E85 all of the time, in line with how EVs are assumed to operate on zero-carbon electricity all of the time. The Flex Fuel Fairness Act aims to ensure that automakers that manufacture FFVs should be allowed to use a compliance tailpipe carbon dioxide emissions value that reflects the lifecycle GHG savings from using E85. For purposes of determining fleet average carbon dioxide standards, the bill would ensure that manufacturers may use a gram-per-mile carbon dioxide value for FFVs that is 31 percent lower than the gram per mile carbon dioxide value for the same vehicle model that is not an FFV.
The Renewable Fuels Association is applauding the bill, stressing it would help level the playing field for FFVs by properly recognizing the emissions benefits associated with the use of E85 flex fuels.
“We thank Senators Klobuchar and Ricketts for introducing the Flex Fuel Fairness Act, which appropriately acknowledges the emissions benefits of FFVs and flex fuels and rewards automakers who continue producing these popular vehicles,” said Geoff Cooper, president and CEO of the RFA. “This legislation helps unlock the potential of renewable fuels and puts more tools in the toolbox for automakers who must comply with increasingly stringent vehicle emissions standards. By leveling the playing field for the production of all clean vehicle technologies, this bill allows low-carbon liquid fuels like ethanol to work alongside clean electricity, electric vehicles, and other technologies to reduce emissions from transportation.”
“If EPA regulations are going to credit EVs for their maximum theoretical carbon emissions benefit, then it stands to reason that the agency should also credit FFVs for their maximum possible carbon emissions benefit,” Cooper added. “This bill would ensure that EPA is being fair and equitable in the way it uses emissions values as policy incentives to stimulate the production of lower-carbon vehicles.”
Growth Energy has also spoken out to welcome the bill, noting it would maximize the benefits of low-carbon biofuels under federal tailpipe standards. “U.S. automakers need flexibility to pursue innovative strategies for decarbonizing light-duty vehicles,” said Emily Skor, CEO of Growth Energy. “This bill would level the playing field, so both electricity and low-carbon biofuels can drive progress toward a net-zero future. We applaud Senators Klobuchar and Ricketts for working to make sure that EPA regulations protect access to cleaner, more affordable transportation options.”
“Higher blends of biofuels offer immediate climate benefits while also reducing emissions of particulate matter, carbon monoxide, and other smog-forming pollutants linked to cancer and other negative health outcomes,” added Skor. “This legislation would put more FFVs on the road and position them to play an even greater role in decarbonizing transportation for decades to come.”
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Jul 26, 2023
U.S. fuel ethanol production was up 2 percent the week ending July 21, according to data released by the U.S. Energy Information Administration on July 26. Stocks of fuel ethanol were up slightly while exports were unchanged from the previous week.
Fuel ethanol production averaged 1.094 million barrels per day the week ending July 21, up 24,000 barrels per day when compared to the 1.07 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending July 21 was up 73,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 23.228 million barrels the week ending July 21, up 62,000 barrels when compared to the 12.166 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 21 were down 100,000 barrels.
Fuel ethanol exports averaged 86,000 barrels per day the week ending July 21, a level that was maintained from the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. According to EIA data, no fuel ethanol imports were reported for the week ending July 21.
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Jul 25, 2023
Archer Daniels Midland Co. released second quarter financial results on July 25, reporting strong results for both ethanol and biodiesel operations. Robust margins for both types of biofuel are expected to continue into the second half of the year.
“Biofuels demand continues to remain strong,” said Juan Luciano, chairman and CEO of ADM, during a second quarter earnings call. “Through the first half of the year, we saw robust margins from biodiesel, strong demand for ethanol and an increasing demand for vegetable oil from renewable green diesel. We expect these trends to continue in the second half.”
Luciano said the new soybean crushing facility under development in Spiritwood, North Dakota, is currently scheduled to begin operations during the fourth quarter of this year. The facility, owned by a joint venture between ADM and Marathon Petroleum, will add 1.5 million metric tons of annual soy crush capacity to ADM’s portfolio and produce low-carbon intensity (CI) for Marathon’s renewable diesel facility in Dickinson, North Dakota. “Projects like this will support growing demand for renewable diesel and sustainable aviation fuel throughout the industry,” he added.
ADM’s Carbohydrates Solutions business segment reported $303 million in operating profit for the second quarter, down from $473 million during the same period of last year. The segment includes the Starches and Sweeteners subsegment, which reported $285 million in operating profit, down from $393 million; and the Vantage Corn Processors subsegment, which reported $18 million in operating profit, down from $80 million.
ADM noted the Carbohydrates Solutions segment delivered strong results, but said results were lower than the record second quarter of last year. The Starches and Sweeteners subsegment includes ethanol production from wet mills. The company said ethanol margins were solid as industry stocks moderated, but were lower than the prior year. Results for the quarter were negatively impacted due to unplanned downtime at one of the company’s corn germ plants. Vantage Corn Processors results were lower due to lower year-over-year ethanol margins. ADM also noted that the second quarter of last year included a one-time $50 million benefit from the USDA Biofuel Producer Recovery Program.
Vikram Luthar, chief financial officer of ADM, said the company is continuing to make progress on its initiatives to decarbonize its Carbohydrates Solutions business, including through its definitive agreement with Tallgrass to capture carbon dioxide from its corn-processing complex in Columbus, Nebraska, and transport it to Wyoming for secure geologic storage. The company’s carbon reduction efforts will allow it to produce low-CI feedstock for use in a variety of applications, such as its joint ventures with LG Chem to produce lactic acid and polylactic acid (PLA).
Overall, ADM reported segment operating profit of $1.53 billion for the second quarter, down from $1.84 billion during the same period of last year. Adjusted segment operating profit was at $1.83 billion, down from $1.85 billion. Earnings per share reached $1.70, down from $2.18. Adjusted earnings per share reached $1.89, down from $2.15.
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Jul 20, 2023
U.S. Grains Council (USGC) leaders, Chairman Josh Miller and President and CEO Ryan LeGrand, traveled to Seoul, South Korea, last week for the 2023 Role of EcoFriendly Fuels in Realizing 2050 Carbon Neutrality symposium. The event was a collaboration between the Council, FAS Seoul, the Korea Automobile Journalists Association (KAJA) and the Korea Biofuels Forum.
The purpose of the symposium was to inform various stakeholders including the Korean government, the petroleum industry and the media about the carbon emission reduction potential of bioethanol and its enhanced effectiveness under a national bioethanol renewable fuel standard (RFS). The symposium also aimed to introduce alcohol-to-jet technology for the production of sustainable aviation fuel (SAF) from bioethanol and provide insights into SAF industry trends.
“We applaud the Korean government for its 2022 announcement to create a Renewable Fuel Standard. This symposium further promotes and actualizes Korea’s goal to implement its Renewable Fuel Standard by 2025, joining many other countries around the world in acknowledging and incorporating bioethanol within their country’s fuel supply chain,” Miller said.
The symposium’s key events included individual presentations by subject matter experts on global bioethanol and SAF policies, life cycle analysis (LCA), vehicle compatibility and infrastructure, prospects of the global automotive industry. Additionally, there was a panel discussion between global bioethanol industry experts and domestic policy officials, emphasizing the necessity of introducing a national bioethanol RFS in South Korea.
“The enthusiasm and excitement surrounding bioethanol consumption within Korea was great to see. A multitude of stakeholders from media, government, automotive, retail, import and refinery level organizations were present and there was robust and substantial engagement throughout the event and in follow-on meetings,” said Mackenzie Boubin, USGC director of global ethanol export development.
Through this program, the Korean government and related industries recognized the carbon-reduction effect of U.S. corn-based bioethanol and its potential as a promising raw material for SAF. This will contribute to the government’s pilot distribution project for a successful automotive RFS introduction and will create an environment that promotes the use of bioethanol for the deployment of alcohol-to-jet technology.
“A significant 480-million-gallon opportunity, the Korean market has been elevated to a tier 1 priority market in 2023 to account for its RFS commitments and on-road bioethanol implementation efforts. USGC will remain engaged on pilot initiatives and best-practice pathways toward nationwide consumption to achieve Korean’s decarbonization objectives,” Boubin said.
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Jul 18, 2023
The U.S. ethanol industry delivered strong second quarter results with steady production and above-average profitability, according to statements made by CoBank in its latest quarterly research report, released July 13.
CoBank said that pretax operating margins for the three-month period averaged 45 cents per gallon through late June, well above the average profit margins of 32 cents per gallon year-to-date and 28 cents per gallon long-term.
Production during the second quarter averaged 15.4 billion gallons annualized vs. 15.2 billion gallons sequentially, which modestly exceeded the five-year average levels, according to the report.
CoBank also discusses expectations for this year’s corn crop within the report. Although the USDA currently forecasts a record large U.S. corn crop at 15.32 billion bushels on expanded acreage, CoBank cautioned that crop conditions across the Central U.S. are below historical averages. Mild temperatures in the Midwest thus far have prevented a faster decline in corn crop conditions, CoBank noted, but said July weather during corn pollination will be key to establishing yield potential.
A full copy of the quarterly report is available on the CoBank website.
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Jul 17, 2023
Vietnam has lowered Most-Favored-Nation tariff rates on ethanol from 15 percent to 10 percent, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The Government of Vietnam issued a decree on May 31 announcing the change. The new rate became effective on July 15, according to the report.
MFN tariff rates will to all of Vietnam’s trading partners with whom the country has no preferential agreements in place. The report indicates that MNF tariff rates apply to the U.S.
According to data published by the USDA FAS, the U.S. exported approximately 2.38 million gallons to Vietnam last year, compared to 6,325 gallons in 2021 and 2.72 million gallons in 2020.
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Jul 6, 2023
May U.S. ethanol exports eased 10% to 113.2 million gallons (mg), chiefly reflecting lower undenatured non-beverage, non-fuel ethanol shipments (including 12.6 mg lower exports to India). Canada was our largest destination for the 26th consecutive month and accounted for 45% of global ethanol sales. The 51.0 mg of ethanol shipped north of our border (a 9% increase over April and the second largest on record) included 73% of total U.S. denatured fuel exports for the month. Other substantial markets included the European Union (22.6 mg, +37%)—primarily shipped to the Netherlands, marking the country’s second-largest import volumes on record—the United Kingdom (9.7 mg, -7%), South Korea (9.6 mg, -10%), Peru (6.2 mg, +113%), and Colombia (6.0 mg, +116%). Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 593.0 mg, lagging 18% behind last year at this time.
For the fifth consecutive month, the U.S. did not register any meaningful imports of foreign ethanol.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, sprang to a 9-month high of 958,385 metric tons (mt) in May. This was 23% more than April but 1% behind year-ago volumes. The bulk of DDGS shipments landed in just six countries, yet several smaller markets logged near-record volumes (e.g., Tunisia imported 20,008 mt and Guatemala bought 18,016 mt). Mexico captured the largest market share (17%) for the 11th consecutive month (up 4% to 163,731 mt), and Turkey’s imports were up sevenfold to a 22-month high of 146,559 mt. South Korea (103,925 mt, -7%), Indonesia (89,005 mt, +21%), Vietnam (83,905 mt, +29%), and Canada (59,523, +65%) rounded out our largest global customers for the month. Year-to-date DDGS exports, totaling 4.17 million mt, lag 11% behind last year at this time.
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National Corn Growers Association
Jun 29, 2023
Congress can ensure more consumer choice in fuels and vehicles by taking greater advantage of low-cost, low-emissions biofuels like ethanol, a leader of the National Corn Growers Association told members of Congress on June 22.
“As producers of the sustainable, primary feedstock for low carbon ethanol, corn farmers stand behind agriculture’s contribution to low-cost, cleaner, domestic energy,” NCGA CEO Neil Caskey said during testimony before the Subcommittee on Environment, Manufacturing, and Critical Materials of the House Energy and Commerce Committee. “Their production improvements will help achieve biofuels with net-zero emissions and higher ethanol blends cost less.”
In his testimony, Caskey discussed several bills that that would leverage the benefits of biofuels to ensure a level playing field in transportation, including:
- The Fuels Parity Act, which ensures EPA uses the most accurate lifecycle emissions assessment for biofuels: the Department of Energy Argonne National Lab’s GREET model. The legislation recognizes progress made under the Renewable Fuel Standard, allowing all fuels, including corn ethanol, that meet the 50 percent lower GHG standard for an advanced biofuel to qualify as an advanced biofuel.
- The Consumer and Fuel Retailer Choice Act, which would permanently remove outdated and unnecessary barriers to full market access to 15 percent ethanol-blended fuel, a lower-cost and lower emissions choice.
- Next Generation Fuels Act, which considers fuels and vehicles as a system, would improve our nation’s liquid fuel supply and transition new combustion vehicles to use advanced engines that take advantage of better fuels, such as higher blends of ethanol. This transition to updated fuels and vehicles would cut fuel costs, reduce GHG and other transportation emissions and increase fuel efficiency.
Caskey said NCGA supports policies to further reduce emissions from vehicles but is opposed to EPA’s proposed approach for emission standards.
“EPA’s proposed rule envisions only one solution to meet new standards, electric vehicles, without accounting for their full lifecycle emissions,” he said. “Rather than endorse a single technology, we are urging EPA to focus on outcomes and open pathways for all low-carbon fuels and technologies, as well as advance a needed rulemaking to improve fuels.”
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USDA Foreign Agricultural Service
Jun 23, 2023
The United States transitioned from a net importer of ethanol in 2009 to the world’s largest supplier, exporting a record 1.7 billion gallons in 2018. While the use of ethanol as a fuel for blending with gasoline accounted for three-fourths of the export expansion, ethanol for other nonfuel industrial applications has seen slower but steady growth. With expanding uses for industrial ethanol, global demand will grow, including use as disinfectants, solvents, carriers in foods and cosmetics, commercial deicers, pharmaceuticals, and organic chemical manufacturing. The recent increased export demand for U.S. industrial ethanol is mainly tied to two factors: 1) demand for disinfectants and, more importantly, 2) growing industrial use from the manufacturing sectors of the Republic of Korea (South Korea), India, Mexico, Nigeria, and Europe.
Continued global demand for disinfectants, the emergence of biomanufacturing, and rising demand for “lower carbon” consumer products are expected to expand opportunities for industrial ethanol. Ethanol’s continually improving carbon intensity (CI) score, consumer demand for environmentally responsible products, and countries’ interest in decreasing their greenhouse gas emissions will continue to create market opportunities for U.S. ethanol exports. Lower CI scoring now means that U.S. ethanol is eligible to compete for 100 percent of Japan’s ethyl tertiary-butyl ether demand. Additionally, new investments in U.S. plants manufacturing sustainable aviation fuel derived from ethanol are underway, creating another potential source of future demand. These developments will support fuel-ethanol exports, which have retreated since 2018 due to setbacks with Brazil, China, and the pandemic.
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Jun 22, 2023
U.S. ethanol production was up more than 3 percent the week ending June 16, reaching the highest level since December 2022, according to data released by the U.S. Energy Information Administration on June 22. Ethanol stocks were also up 3 percent, with exports up 14 percent.
Fuel ethanol production averaged 1.052 million barrels per day the week ending June 16, up 34,000 barrels per day when compared to the 1.018 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending June 16 was down 3,000 barrels per day.
Weekly ending stocks of fuel ethanol expanded to 22.804 million barrels, up 578,000 barrels when compared to the 22.226 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending June 16 were down 672,000 barrels.
Fuel ethanol exports averaged 87,000 barrels per day the week ending June 16, up 11,000 barrels per day when compared to the 76,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports earlier this month. According to EIA data, no fuel ethanol imports were reported for the week ending June 16.
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Jun 19, 2023
A group of 16 senators on June 16 sent a letter to U.S. Treasury Secretary Janet Yellen urging the agency to adopt the U.S. Department of Energy’s GREET model as the secondary methodology for calculating tax credits for sustainable aviation fuel (SAF). According to the senators, adopting GREET will dramatically enhance the effectiveness of SAF incentives to accelerate the aviation industry’s decarbonization.
“Failure to provide businesses with the certainty and reliability of a science-based, United States government-developed model to determine eligibility for IRA tax credits could have dire consequences,” the senators wrote. “Prohibiting the aviation industry from decarbonizing with the most readily available SAF options will not only prevent American farmers from contributing to a clean energy economy, but it will drastically delay adoption of promising low emission energy sources and force the aviation industry to miss an opportunity to eliminate millions of tons of carbon emissions in the coming years.”
Within the letter, the senators explain that the GREET model would enable SAF stakeholders to adapt to new developments and technical advances, making it “the only model that can lead to every participant in the SAF lifecycle having options to appropriately participate in carbon reducing processes."
The letter outlines several specific reasons why Treasury should allow SAF producers to use GREET in determining the fuel’s lifecycle GHG emissions. As required by the Inflation Reduction Act, GREET is a “similar methodology” to the most recent CORSIA model, which has been adopted by the International Civic Aviation Organization. GREET also satisfies the criteria for lifecycle analysis under the Renewable Fuel Standard regulations.
In addition, the senators stress that GREET is used to calculate the lifecycle analysis related to other IRA tax credits, including those for hydrogen and clean fuels. “Notably, these provisions requiring the use of GREET for other transportation fuels and hydrogen reference the same definition of ‘lifecycle greenhouse gas emissions’ under the Clean Air Act as does IRC Section 40B,” the senators wrote. “Moreover, because some facilities will produce both aviation and non-aviation fuels at the same facility, to require them to utilize different models for aviation and nonaviation fuels will unnecessarily complicate the ability of these taxpayers to calculate credit values for these fuels.”
The senators also explain that using GREET for lifecycle analysis creates a system to reward farmers for climate-smart agricultural practices and introduces a market-driven approach to sustainability. Finally, they note that GREET is the most up to date, accurate model for U.S. domestic practices. “ICAO largely relies on data published between 2007-2012 and utilizes an averaging approach,” the senators wrote. “In fact, ICAO uses old GREET data but relies on out of date, static science and methodologies that unjustifiably penalize U.S. agriculture. In the last decade, the carbon intensity of biofuels has fallen by 20 percent or more, making the case that for a scientific model to be accurate it must be continuously updated with relevant data and methodologies. GREET has been updated at least five times in the last 9 years and relies on the best available science to assess direct emissions. GREET includes actual field testing and validation techniques and includes climate-smart agricultural practices and scientific innovations.”
The senators caution Treasury that failure to implement GREET will prohibit the majority of the current SAF market from benefiting from the IRA’s SAF tax credit while preventing industry from making further investments in SAF production and hindering carbon reduction.
The letter is signed by Sens. Tammy Duckworth, D-Ill.; Richard Durbin, D-Ill.; Deb Fischer, R-Neb.; Joni Ernst, R-Iowa,; Amy Klobuchar, D-Minn.; Chuck Grassley, R-Iowa; Patty Murray, D-Wash.; Sherrod Brown, D-Ohio; Debbie Stabenow, D-Mich.; Tina Smith, D-Minn.; Roger Marshall, R-Kan.; Gary Peters, D-Mich.; John Thune, R-S.D.; Tammy Baldwin, D-Wisc.; Michael Rounds, R-S.D.; and Pete Ricketts, R-Neb.
Duckworth earlier this month introduced the Sustainable Aviation Fuels Accuracy Act of 2023, a bipartisan bill that aims to identify the standards required to meet the definition of SAF at the Federal Aviation Administration. The bill would, in part, require the federal government to adopt the most up-to-date lifecycle emissions models, including GREET or successor life-cycle analysis models to GREET. Fischer, Ernst, Klobuchar and Grassley have signed on to cosponsor the bill.
Growth Energy has spoken out in support of the senators’ letter to Treasury.
“It would be climate malpractice to anchor our SAF ambitions to outdated models that disregard U.S. innovations in biofuel production and climate-smart agriculture,” said Emily Skor, CEO of Growth Energy. “With current technologies, farm-based feedstocks are the only sources of clean, renewable energy available in large enough volumes to deliver on our decarbonization goals. Fortunately, researchers at the U.S. Department of Energy (DoE) have developed the gold standard for lifecycle modeling, informed by the latest hard data on everything from indirect land use change to fertilizer inputs. Only with the best available science guiding incentives can we unlock the innovations and investments needed to meet this administration’s SAF Grand Challenge. We applaud Senator Duckworth and our other Senate champions for working to ensure U.S. SAF production isn’t grounded before it can ever take off.”
A full copy of the letter is available on the Growth Energy website.
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Jun 12, 2023
Whitefox Technologies is pleased to announce that Redfield Energy LLC,has decided to implement a Whitefox ICE® Plus membrane dehydration system at its ethanol plant located in Redfield, SD.This project is Whitefox’s first ICE Plus project in the U.S. It represents a major milestone towards delivering Net Zero benefits, whilst also debottlenecking the plant’s ability to deliver additional ethanol capacity. The project is estimated to be operational in Q3 2024.
The Whitefox ICE Plus system is designed to work with Redfield’s existing dehydration technology and will provide an additional12%capacity taking the plantto70 MMGPY from Day 1, sized toget the Plant to90 MMGPY over time. The solution is,coupled with the ability to integrate and conserve a significant amount of energy, up to 5,000 BTU per gallon of ethanol produced. The solution also reduces the demand for cooling water and provides the operational benefits associated with a Whitefox ICE solution in terms of reducing recycle streams and dehydrating ethanol in a continuous 24/7 process. The Whitefox ICE Plus solution uses the same membrane technology associated with Whitefox ICE, which is currently being deployed in 11 US Ethanol plants. It’s a solution which not only helps ethanol reach its Net Zero goals, but also makes plants more profitable and sustainable.
Eric Baukol, CEO of Redfield Energystates “It’s an exciting time to be in the industry. If you had 10 CEOs in a room, they might map out that many different versions of the future for their biorefineries as far as which markets and products they intend to compete in. All of these versions of the future start with efficiencies and a drive toward making our Net Zero pledge a reality, and we feel we’re making a great step forward in that regard with this Whitefox project.”
Virginia Andrade, Whitefox Engineering Managercommented “Whitefox ICE Plus was developed as we listened to ethanol producers who were looking for enhanced energy savings as they considered the journey towards NetZero. The solution is ideal where the plant’s existing molecular sieves still have lifetime.ICE Plus is able to de-load the molecular sieves and provide additional lifetime to this technology, but also act as a steppingstone to finally replace molecular sieves and transition towards a sole membrane solution, Whitefox ICE XL when the time is right”.
Our process engineers worked closely with the Redfield Energy’s team throughout the initial project phase and together designed a tailored solution that not only fits to the distinctive features of the plant, but allows Redfield Energy to fulfil their business objectives. It has been a real pleasure to work with Eric Baukol, Ryan Siebrecht, Josh Underberg, Angela Turck and Casey Stoner and the team at the Redfield plant.”
ABOUT REDFIELD ENERGY LLC.
At Redfield, our mission is tooperatea profitableand innovative ethanol facility, be the preferred market for locally grown corn, andprovidea quality feed product. In April 2007, Redfield Energy became operational as a dry mill plant. It has the space to process approximately 22 million bushels of corn into ethanol per year. Approximately 230,000 tons of modified wet and drydistillersgrain is produced and sold to the local and west coast markets.
About Whitefox Technologies Limited
Whitefox is a world-leading membrane technology company?headquartered in London, UK with a strong presence in North America through our Membrane & Engineering Centre of Excellence based in Calgary, Alberta, our U.S. Field Services Team in Omaha. Whitefox has over 20 years of experience in delivering cost effective solutions to dehydrate ethanol and other organics components using our?Whitefox ICE®?systems.?Whitefox membrane technology has been successful in dehydrating over?700 million gallons?of ethanol using the currently installed base of 150 MMgy. This installed base is expected to nearly double in 2023.
For more information about Whitefox and our installed U.S. project references, please visit our website:www.whitefox.com
Website: whitefox.com
Twitter: @WhitefoxTech
LinkedIn: Click Here
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Jun 12, 2023
By Renewable Fuels Association
A survey of U.S. ethanol producers shows the industry to be on track toward its net-zero-carbon goal, a new white paper and presentation indicate, with facilities producing ethanol that is up to 55 percent less carbon intensive than gasoline, on average. The findings will be spotlighted in a presentation by the Renewable Fuels Association this afternoon at the Fuel Ethanol Workshop and Expo in Omaha by RFA Vice President for Strategy and Innovation Tad Hepner.
In July 2021, RFA’s producer members unanimously committed to ensuring that, by 2023, ethanol reduces greenhouse gas emissions by at least 70 percent, on average, when compared directly to gasoline, and reach net-zero GHG emissions by 2050 or sooner. A report released at the 2022 National Ethanol Conference identified a workable pathway to that goal. Earlier this year, RFA surveyed its member producers and received responses from nearly all RFA member biorefinery facilities, representing a wide variety of sizes, plants with annual production capacities ranging from 35 to 150 million gallons. These responses came from biorefineries operating in 12 different states, both inside and outside the Corn Belt.
“We’re very happy to see the progress being made by RFA’s ethanol producer members toward the net-zero goal,” Hepner said. “Nearly 8 out of 10 facilities are on track to achieve net zero by 2050 or sooner, but there are some barriers that remain to be overcome, such as access to capital, policy and regulatory uncertainty, permitting challenges, and a lack of clear return on investment. As the nation’s leading trade association for renewable fuels, we have our work cut out for us, and we look forward to the challenge and the opportunity for success.”
Among other findings to be presented:
•All the survey facilities reported adopting at least one tracked carbon-reduction technology in recent years, and most have adopted more than one of these technologies and practices.
•These plants have seen a 12 percent reduction in average carbon intensity since 2015/16.
•Nearly two-thirds of the plants have an approved Efficient Producer Pathway under the Renewable Fuel Standard.
•While just over a third of the plants currently capture biogenic C02, more than three-quarters intend to adopt carbon capture and geological sequestration technology.
•A majority of the plants have approved pathways to participate in California’s Low Carbon Fuel Standard program, and many also have approved pathways for similar programs in British Columbia, Oregon and Canada overall.
•Most biorefineries have received a premium value for renewable fuels sold into these low-carbon markets.
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Jun 7, 2023
By Renewable Fuels Association
A newly released, peer-reviewed study from the University of California, Riverside, shows that the E15 ethanol blend provides notable emissions reductions compared to California’s regular reformulated gasoline. The Renewable Fuels Association hailed the report as proof of the value of E15 for The Golden State, which has yet to allow the E15 blend to be used.
“This new study shows what we’ve been arguing all along—that E15 offers emissions benefits that would help meet environmental goals in California, where the state’s 27 million drivers log more than 340 billion miles a year on the road,” RFA President and CEO Geoff Cooper said. “We continue to call on California’s regulators to move quickly to permit E15 to be sold in the state, a blend that also offers cost savings in a place where gasoline prices are higher than anywhere else in the country.” California is one of only two states that has not yet approved E15; Montana is the other.
According to the study, emissions of total hydrocarbons, non-methane hydrocarbons, and carbon monoxide all showed either marginally or statistically significant reductions for E15 compared to regular California gasoline. In addition, particulate matter (PM) and solid particle number emissions dropped substantially with E15, and E15 showed lifecycle greenhouse gas emissions savings when compared to E10. Nitrogen oxide (NOx) emissions when using E15 showed marginal reductions in many cases, but the changes in NOx were not statistically significant.
The research will appear in the October 2023 journal Fuel, and was supported by RFA, the California Air Resources Board and other organizations. Researchers noted that this is the largest U.S. study to date that focuses on the effects of ethanol fuels on tailpipe emissions from current technology vehicles.
Related LCFS Workshop Comments Submitted
Approval of E15 by the state also could help facilitate greater near-term carbon emissions reductions under California’s Low Carbon Fuel Standard, according to comments and analysis filed Tuesday by RFA in response to a workshop held late last month by California’s Air Resources Board.
In the comments, RFA Chief Economist Scott Richman suggested CARB “stepdown” its compliance curve with more stringent greenhouse gas reduction targets. RFA is working with a broad coalition of low-carbon fuel providers on a report to demonstrate the clean fuels industry’s capabilities to deliver more significant carbon intensity reductions.
“If E15 had been used in California in 2022 rather than E10, that alone would have allowed the LCFS compliance target to be nearly 2 percent lower. Migration of the market to E15 over the course of this decade would enable a 2.5 percent reduction of the current 2030 target against the 2010 baseline.”
Analysis accompanying the comment letter showed that using E15 instead of E10 in 2022 would have further reduced GHG emissions by 2.5 million metric tons and cut petroleum consumption by 500 million gallons. Because CARB has not yet approved E15, those additional GHG reductions are being left on the table.
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