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Ethanol Producer Magazine

By Growth Energy

Sep 20, 2024

The Energy Futures Initiative Foundation, led by Ernest J. Moniz, the 13th U.S. Secretary of Energy, today released a   new study detailing pathways to further decarbonize ethanol   to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.

“Low-carbon liquid fuels will be essential for decarbonizing transportation, and ethanol has been the leader in the move to affordable low-carbon fuels,” said Ernest J. Moniz, the 13th Secretary of Energy and EFIF president and CEO. “Through this research, we identified a portfolio of relatively low-cost solutions that can take ethanol close to a net zero fuel by 2035. In addition to being the most effective, scalable, and affordable low-carbon fuel today for vehicles, decarbonized ethanol also has the potential to help provide Sustainable Aviation Fuel. This market can help sustain the ethanol supply chain as a major driver of the rural economy.”

The EFIF research found nine currently available and affordable measures, which together could lower the carbon intensity (CI) score of renewable vehicle fuels to near-net-zero by 2035 and to net-zero or negative emissions by 2050. Effective measures included

Carbon Capture, Utilization, and Storage (CCUS) of the fermentation process;

Low carbon energy use at biorefineries including using combined heat and power generation with biomass and using carbon-free electricity;

Climate smart agriculture practices, including planting cover crops, no-till farming, using enhanced efficiency fertilizers, and fertilizer management practices.

To accelerate adoption of these practices, the report outlines policy recommendations such as a call for timely guidance on the 45Z clean fuels production tax credit slated to take effect in 2025 under the Inflation Reduction Act.

The research also looks at the potential of lower-carbon ethanol to help reduce emissions for on-road fuels as well as to close the “emissions gap” in hard-to-abate sectors like aviation.

The research, sponsored by Growth Energy, included months of research by EFIF staff to analyze the carbon intensity reduction potential, feasibility, and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S. All of the nine initiatives ultimately recommended are currently in use at select facilities and farms.

“EFIF’s recommendations are as practical as they are robust, reflecting innovations our members and their farm partners are already embracing,” said Emily Skor, CEO of Growth Energy, the largest ethanol trade association in the country. “We are proud of our industry’s progress to date and look forward to seeing  biofuels   continue to deliver on ambitious carbon reduction goals.”

The full EFIF study will be released in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC.

Read the original story here

Gevo, Inc

Sep 12, 2024

Gevo, Inc. (NASDAQ: GEVO), a leading developer of net-zero hydrocarbon fuels and chemicals, is pleased to announce that it has entered into a definitive agreement to acquire the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy, LLC (“Red Trail Energy”) for $210 million.

Acquisition highlights:

The Adjusted EBITDA1 from Red Trail Energy ethanol and CCS assets, when combined with Adjusted EBITDA1 from Gevo’s renewable natural gas (“RNG”) business, and other businesses, including Verity, is expected to make Gevo’s Adjusted EBITDA positive in 2025.

The purchase price includes the ethanol production asset and the CCS asset. Gevo expects that its capability of marketing carbon abatement in conjunction with delivery of advanced liquid fuels should deliver superior value to shareholders.

This acquisition is consistent with Gevo’s strategy while providing an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is well positioned to serve the U.S. and Canadian markets.

Synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota, by providing access to a wholly owned CCS site and additional supply of low carbon intensity (“CI”) ethanol.

The acquisition includes existing CCS assets with total sequestration capacity of 1 million metric tons per year, of which 160,000 metric tons per year are currently being utilized. This site could accommodate many future Net-Zero-type and related projects.

Accelerates Gevo’s fundamental capabilities related to feedstock procurement, plant operations, and the business of carbon abatement, which are expected to benefit Net-Zero 1 and other future SAF projects.

MANAGEMENT COMMENTARY

Gevo CEO, Dr. Patrick Gruber:
“We accomplish several things with this investment. It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation. Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota. This acquisition gives us the opportunity to build capability as a company and is a terrific training ground for our Net-Zero 1 project, as we inherit a trained cadre of employees who understand plant operations.”

“Carbon abatement for fuels and chemicals is core to our business. This acquisition enables immediate market development for sequestered carbon. We expect our ownership of these assets to generate significant near-term and long-term value for our shareholders, while adding new jobs and economic growth to rural communities in the region.”

Red Trail Energy CEO, Jodi Johnson:
“We are proud of what we have accomplished at Red Trail Energy and are excited about the future under Gevo’s leadership. Gevo’s vision for a sustainable future aligns with our philosophy of ‘our farms, our fuel, our future.’ We are confident this acquisition will drive positive change in the renewable energy sector.”

Gevo President and COO, Dr. Chris Ryan:
“As Net-Zero 1 and other production facilities come online, the infrastructure and resources that we will have acquired in North Dakota offer tremendous flexibility for how we might operate in the area. We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS. The CCS well gives us optionality for our Net-Zero 1 carbon sequestration needs. The regional synergies with Net-Zero 1, our development facility in Luverne, Minnesota, and our RNG operations in Northwest Iowa, are fantastic.”

“These assets and their operating team have a strong track record of safe and reliable operations and financial performance. We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.

“I want to welcome the employees of the Red Trail Energy facilities to the Gevo family. We look forward to building upon your cultural commitment to safety, regulatory compliance, operational excellence, and rural communities. I also want to thank our advisors, all of whom were integral in supporting this transaction, positioning Gevo to embark on this exciting phase in the growth of our company.”

ABOUT GEVO

Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including SAF, motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based RNG facilities in the United States. It also owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of their business systems through its Verity subsidiary.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website:  www.gevo.com

Read the original press release here.

Star Tribune

Sep 7, 2024

Karen Tolkkinen’s recent column on ethanol was chock-full of myths, misinformation and half-truths about ethanol  (“The time is ripe to rethink ethanol,” Sept. 1).  We’d like to set the record straight. 

First, there is no “food vs. fuel” conflict with ethanol. One-third of every bushel of corn processed by an ethanol biorefinery returns to the food supply. Only the starch in the corn is converted to ethanol; the protein, fiber, fat and other nutrients are concentrated and fed to livestock and poultry. The University of Minnesota says the 4 million tons of feed produced by the sttate’s ethanol plants is enough to feed nearly every cow, a quarter of all pigs and every single turkey raised in Minnesota.

Food security, quality and availability have improved — both domestically and globally — during the biofuels era, and there is no shortage of food. In fact, one-third of food produced worldwide is wasted each year, according to the United Nations. Meanwhile, U.S. cropland has decreased by 26 million acres since 2007, disproving the myth that ethanol has caused cropland expansion. How is that possible? Because farmers produce more grain on less land each year; Minnesota farmers produced 30% more corn per acre in 2022 than they did in 2007.

Second, Tolkkinen cited just one outlier study — which was rejected and debunked by many other scientists — to argue that ethanol is somehow worse for the environment than gasoline. In reality, researchers from places like the California Air Resources Board, Harvard University, the Massachusetts Institute of Technology and other institutions all agree that today’s corn ethanol reduces greenhouse gas emissions by up to 50% compared to gasoline.

Finally, Tolkkinen misunderstands the biofuels carbon cycle. Plants like corn remove CO2 from the atmosphere as they grow. That same CO2 is rereleased back to the atmosphere when corn is fermented into ethanol and when ethanol is combusted in an engine. The corn ethanol process is simply recycling atmospheric carbon. If CO2 from ethanol fermentation is captured and sequestered via a pipeline (rather than vented), then the amount of CO2 in the atmosphere has been permanently reduced. That’s why policymakers and some science-oriented environmental organizations see enormous greenhouse gas mitigation potential in corn ethanol paired with carbon capture.

Next time, we hope Tolkkinen visits with some of the 20,914 Minnesotans employed in the state’s ethanol industry. They not only know the difference between field corn and sweet corn, but they also know we can simultaneously feed and fuel Minnesota with environmentally friendly ethanol and nutritious co-products.

This letter was submitted by Brian Werner, executive director of the Minnesota Bio-Fuels Association, and Geoff Cooper, president and CEO of the Renewable Fuels Association.

Read the original story here

Fluid Quip Technologies

Sep 5, 2024

CEDAR RAPIDS, Iowa — Fluid Quip Technologies (FQT), a global leader in advanced technologies for the biofuels, beverage alcohol and biochemical industries, announced strong results from their cutting-edge Low Energy Distillation™ (LED) and Grain Neutral Spirits (GNS) technologies after 12 months in operation at the Three Rivers Energy (TRE) facility in Coshocton, Ohio.

“Our LED and GNS systems have been running at the TRE facility for over 12 months and are providing results that outperform the guarantees of purity and energy reduction,” said Neal Jakel, President at Fluid Quip Technologies. “This represents the third installation of FQT’s proprietary LED systems which are helping ethanol facilities around the world significantly reduce energy consumption and lower their carbon footprint.”

Three Rivers Energy is committed to producing high-quality renewable fuels while reducing its carbon footprint. The success of FQT’s LED and GNS systems aligns with their mission, enabling them to enhance their production capabilities, reduce energy consumption, and optimize their resource utilization.

“The GNS system is producing ultra-pure alcohol exceeding specifications, and we have seen significant energy savings with the LED system over time,” said Eamonn Byrne, COO and Director, Three Rivers Energy. “We’re happy to have partnered with Fluid Quip Technologies to install these state-of-the-art solutions that have driven efficiencies, improved our product portfolio and contribute to a more sustainable future.”

About Fluid Quip Technologies

Fluid Quip Technologies® (FQT) is a premier technology and engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience within the agricultural processing, corn wet milling and dry grind ethanol industries. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the beverage, biofuels and biochemical markets for more than 30 years. For more information, visit  www.fluidquiptechnologies.com.

Read the original press release here.

Ethanol Producer Magazine

Sep 4, 2024

The U.S. exported 135.99 million gallons of ethanol and 1.09 million metric tons of distillers grains in July, according to data released by the USDA Foreign Agricultural Service on Sept. 4. Exports of both products were up when compared to July 2023.

The 135.99 million gallons of ethanol exported in July was down when compared to the 145.87 million gallons exported the previous month, but up significantly from the 112.1 million gallons exported in July of last year. 

The U.S. exported ethanol to nearly three dozen countries in July. Canada was the top destination for U.S. ethanol export at 62.01 million gallons, followed by the U.K. at 25.14 million gallons and Colombia at 14.16 million gallons. 

The value of U.S. ethanol exports reached $323.84 million in July, down from $339.75 million in June, but up from $314.07 million in July 2023.

Total U.S. ethanol exports for the first half of 2024 reached 1.1 billion gallons at a value of $2.48 billion, compared to 795.45 million gallons exported during the same period of last year at a value of $2.23 billion. 

The 1.09 million metric tons of distillers grains exported in July was up when compared to both the 945,592 metric tons exported in June and the 984,341 metric tons exported in July 2023.

The U.S. exported distillers grains to approximately 40 countries in July.  Mexico was the top destination for U.S. distillers grains exports at 247,903 metric tons, followed by South Korea at 123,725 metric tons and Indonesia at 73,769 metric tons. 

The value of U.S. distillers grains exports reached $266.42 million in July, up from $246.28 million the previous month, but down from $294.96 million in July of last year. 

Total U.S. distillers grains exports for the first six months of the year reached 6.97 million metric tons at a value of $1.88 billion, compared to 6.08 million metric tons exported during the same period of last year at a value of $1.97 billion. 

Additional data is available on the USDA FAS  website

Read the original story here

Ethanol Producer Magazine

Sep 3, 2024

Operable U.S. biofuels production capacity increased in June, with gains for both ethanol and renewable diesel, according to data released by the U.S. Energy Information Administration on Aug. 30. Feedstock consumption was up for the month. 

Total U.S. biofuel capacity reached 25.122 billion gallons per year in June, up 392 MMgy when compared to May and up 1.631 billion gallons per year when compared to June 2023. 

Ethanol capacity expanded to 18.203 billion gallons per year in June, up 70 MMgy from the previous month and up 498 MMgy from June of last year. 

Biodiesel capacity was at 2.022 billion gallons per year in June, unchanged from the previous month, but down 64 MMgy when compared to June 2023.

Capacity for renewable diesel and associated biofuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, reached 4.897 billion gallons per year in June, up 322 MMgy when compared to the previous month and up 1.197 billion gallons per year when compared to June of last year. 

U.S. biofuel producers consumed 28.584 billion pounds of feedstock in June, up when compared to both the 28.495 billion pounds consumed the previous month and the 28.068 billion pounds consumed in June 2023. The consumption of feedstocks typically used to produce both ethanol and biomass-based diesel in June were up when compared to the same month of last year. 

Biofuel producers consumed 24.984 billion pounds of corn in June, down from 25.502 billion pounds the previous month, but up when compared to the 24.747 billion pounds consumed in June 2023. Producers also consumed 129 billion pounds of grain sorghum feedstock in June, up from 91 million pounds in May, but down from 247 million pounds in June of last year. 

U.S. biofuel producer consumed 1.267 billion pounds of soybean oil in June, including 578 million pounds consumed at biodiesel plants and 689 million pounds consumed at renewable diesel facilities. Soybean oil consumption was at 1.076 billion pounds in May, with 597 million pounds consumed by biodiesel producers and 479 million pounds consumed by renewable diesel plants, and at 1.207 billion pounds in June 2023, with 627 million pounds of that volume consumed by biodiesel producers and the remaining 580 million pounds consumed by renewable diesel facilities. 

Corn oil consumption reached 403 million pounds in June, with 80 million pounds going to biodiesel production and 324 million pounds going to renewable diesel production. Corn oil consumption by biofuel producers was at 341 million pounds in May, including 81 million pounds consumed for biodiesel production and 259 million pounds consumed for renewable diesel production, and at 410 million pounds in June of last year, with 98 million pounds of that volume going to biodiesel production and 312 million pounds going to renewable diesel production. 

Canola oil consumption was at 386 million pounds in June, including 162 million pounds consumed by biodiesel plants and 224 million pounds consumed by renewable diesel facilities. Canola oil consumption was at 397 million pounds in May, including 158 million pounds consumed for biodiesel and 239 million pounds consumed for renewable diesel, and at 317 million pounds in June of last year, with 195 million pounds of that volume going to biodiesel production and 122 million pounds going to renewable diesel production. 

Biofuel producers also consumed 37 million pounds of other vegetable oils in June, up from 18 million pounds the previous month. The EIA withheld the volume of other vegetable oils that went to biofuel production in June 2023 to avoid disclosure of individual company data. 

U.S. biofuel producers also consumed 714 million pounds of yellow grease, 567 million pounds of beef tallow, 57 million pounds of white grease, 21 million pounds of poultry fat, and 18 million pounds of other waste oils, fats and greases in June. Consumption was at 513 million pounds, 449 million pounds, 70 million pounds, 20 million pounds, and 17 million pounds, respectively, in May, and at 550 million pounds, 437 million pounds, 71 million pounds, 12 million pounds and 15 million pounds, respectively, in June 2023.

The EIA withheld data on the consumption of a variety of other feedstock types, including agriculture and forestry residues, other agriculture and forestry products, other recycled feeds and wastes, and other biofuel feedstocks note elsewhere specified or identified in order to avoid disclosure of individual company data. 

Additional information is available on the EIA  website

Read the original story here

KIMT NEWS 3

Aug 27, 2023

ROCHESTER, Minn.- The Rochester Area Chamber of Commerce released a statement on Monday, Aug. 26 congratulating U.S. Representatives Adam Finstad (R) and Angie Craig (D) for their work with the Congressional Sustainable Aviation Caucus to promote cleaner fuel for commercial airlines and the potential business that support could bring to the state of Minnesota. 

It was sentiment that was shared by Richard Syverson, a chairman for the Minnesota Corn Grower Association's Board of Directors. 

Sustainable Aviation Fuel (SAF), which ideally reduce carbon emissions for planes by around 50 percent, are often derived from crops like corn or soybeans which could mean expanded business for farms already producing crops for the ethanol industry.

"SAF is kind of an exciting product for us in the ethanol business, we've been promoting our product to the driving public for years and years and still haven't won everybody over to the use in cars, whereas the airlines are coming to us," Syverson said. 

The federal government and the state of Minnesota are already incentivizing production and use of SAF through SAF tax credits which reward fuels that reduce carbon emissions in planes by 50 percent or more.

Syverson said with the bipartisan support in the congress he is hoping incentives like this will only increase in scope and length as time goes on. 

Brian Werner, executive director of Minnesota Biofuels said that with current incentives, and the U.S. Department of Energy's goal of reducing plane emissions by 50 percent by 2050, it is projected that demand for SAF could be double the demand for ethanol by that time, with private industry hopefully producing 35 billion gallons annually.

Werner said even with continued bipartisan and local support in the state it may take several years to get infrastructure in place for local ethanol producers to get involved in the growing industry, but he said he was optimistic.

"It is going to be a process but it is one we are very excited about because it will produce a lot of new markets," Werner said.

As of 2022, the U.S. Department of Energy says commercial air travel accounted for 2 percent of the world's carbon emissions.

The department hopes that through SAF support programs that it will half that by 2050 and that private industry will be able to support 100 percent of the demand for the biofuel. 

Read the original story here.

Ethanol Producer Magazine

Aug 27, 2024

The USDA currently predicts fiscal year (FY) 2025 U.S. ethanol exports will reach $4.3 billion. Export volumes are expected to edge up to a record 2 billion gallons, according to the agency’s latest quarterly trade outlook, published Aug. 27.

USDA’s FY 2025 begins Oct. 1, 2024, and ends Sept. 30, 2025. The expected $4.3 billion in FY 2025 ethanol exports is unchanged from the revised FY 2024 forecast. Ethanol export unit value is expected slightly lower following U.S. corn prices, the USDA said in the report. 

According to the agency, little change is aggregate sales to top export markets is expected as blending increases in Ontario and Quebec slow, Europe’s ethanol prices moderate further or stabilize, India’s ethanol feedstock supplies recover, and the recovery of Colombia’s blending rates come to an end. Brazil’s 18% import duty on ethanol is expected to keep the arbitrage window closed for U.S. sales. 

FY 2024 ethanol exports are raised $300 million from May to a record $4.3 billion, an increase of $800 million over the previous year and $400 million higher than the previous record, which was set in FY 2022. Export volumes for FY 2024 are expected to reach 1.9 billion gallons. 

The report indicates that U.S. ethanol is generally more price competitive than Brazilian product, helping to boost global U.S. sales. Canada has become the world’s largest ethanol importer, and the U.S. continues to supply all the country’s ethanol imports, according to the USDA. The U.S. ethanol industry is also the top foreign supplier to the European Union and United Kingdom, which are currently the world’s second and third largest ethanol importers. Other important markets, such as India, Colombia, South Korea, the Philippines, Mexico and Peru, are seeing strong-to-record U.S. sales. The window of arbitrage for U.S. sales to Brazil has remained mostly closed this year due to the 16% duty, which was raised to 18% in January. 

Read the original story here.