In the News
Aug 13, 2024
By Emily Skor
CEO of Growth Energy
For years, Growth Energy has highlighted the expertise of the nation’s top GHG lifecycle scientists to counter misinformation about American biofuels. Sound science is the bedrock of our legal strategy, which aims to protect the Renewable Fuel Standard against misguided challenges lodged year after year by certain critics of renewable fuels. Now, experts in the fields of biomass and agricultural economics are taking on the challenge directly by filing their own amicus brief challenging claims offered by plaintiffs in Center for Biological Diversity (CBD) v. EPA et al. (Case No. 23-1177), in the U.S. Court of Appeals for the District of Columbia Circuit.
In CBD’s case, plaintiffs argue that the climate benefits of biofuels are undermined by the negative impacts of cutting into previously undisturbed land—an argument we know is based on debunked research.
In response, researchers from the University of Illinois Chicago, University of Illinois Urbana-Champaign, University of Idaho, Oak Ridge National Laboratory, South Dakota State University, University of California-Davis and other institutions are setting the record straight and putting the best science before the D.C. Circuit.
Specifically, they point out, “When the RFS was first adopted in 2007, some analysts predicted its targets for producing ethanol in the United States would generate major land-use changes and that emissions associated with the conversion of ‘natural land’ to ‘cropland’ would result in higher GHG emissions than gasoline.” They continued, “Experts in the field of biomass and agricultural economics have demonstrated that much of the outlier research was based on flawed assumptions and methods related to land use.”
For example, they note, the “satellite imagery at the resolution used in those early studies failed to accurately distinguish between land that has never been tilled and cropland that was temporarily fallow ... outlier researchers have also erroneously treated ‘cropland pasture’ as ‘natural’ land not previously tilled.”
Now, they explain, real-world data is available showing, “In research examining farmland over a 36-year period, only 1.8 percent of the 1,000 land parcels outlier researchers described as 'converted' appeared to fall into the category of untilled grassland, while 98.2 percent was in agriculture and toggled between crop and non-crop uses.” They added, “For the small percentage of previously untilled lands described as ‘converted,’ there is no causal evidence linking the RFS or biofuels to any such change in use.”
In short, they write, “Analyses based on more complete, updated data found that the average carbon intensity of biofuels is significantly less than conventional gasoline. Over time, as technologies and practices advance, and with various incentives the federal government has put into place, that benefit is expected to continue growing at an accelerated pace.”
Certainly, they aren’t the first experts to correct the record on biofuels. In 2022, the U.S. Department of Energy (DOE) even sent a letter to Growth Energy sharing concerns “about the methods and assumptions used” by Tyler Lark, who has authored numerous discredited studies contradicting mainstream science on biofuels.
The new amicus brief takes peer review to the next level, with top academic experts explaining directly to the courts why—when it comes to ethanol’s environmental benefits—there is no longer any genuine debate. Hopefully, those backing misleading challenges to the RFS will take note and join us as we continue to expand access to low-carbon biofuels at the gas pump.
Read the original story here.
Aug 8, 2024
The U.S. exported 145.87 million gallons of ethanol and 645,592 metric tons of distillers grains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 6. Exports of both products were up when compared to June 2023.
The 145.67 million gallons of ethanol exported in June was down slightly from the 154.39 million gallons exported the previous month, but up when compared to the 111.1 million gallons exported in June of last year.
The U.S. exported ethanol to more than three dozen countries in June. Canada was the top destination for U.S. ethanol exports at 44.74 million gallons, followed by the U.K. at 25.77 million gallons and India at 14.73 million gallons.
The value of U.S. ethanol exports reached $339.75 million in June, up from $332.99 million in May and $313.04 million in June 203.
Total U.S. ethanol exports for the first half of the year reached 962.76 million gallons at a value of $2.16 billion, compared to 684.35 million gallons exported during the same period of last year at a value of $1.91 billion.
The 945,592 metric tons of distillers grains exported in June was down when compared to the 1.01 million metric tons exported the previous month, but up slightly from the 943,740 metric tons exported in June 2023.
The U.S. exported distillers grains to approximately 43 countries in June. Mexico was the top destination for U.S. distillers grains exports at 200,900 metric tons, followed by South Korea at 116,222 metric tons and Indonesia at 100,967 metric tons.
The value of U.S. distillers grain exports reached $246.28 million in June, down from $262.97 million the previous month and $302.31 million in June of last year.
Total U.S. distillers grains exports for the first half of 2024 reached 5.87 million metric tons at a value of $1.62 billion, compared to 5.09 million metric tons exported during the same period of 2023 at a value of $1.68 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Jul 30, 2024
Fluid Quip Technologies (FQT) today announced the successful completion and commissioning of the world’s largest MSC™ System to date at Tharaldson Ethanol’s 175 million-gallon biorefinery in Casselton, North Dakota. This marks the twelfth FQT MSC™ system installed world-wide and expands the production of corn fermented protein, a high-quality protein ingredient in animal feed, providing superior nutrition solutions for pet, aquaculture and other animal feed markets which has up to a 40% lower carbon-intensity than competing products.
“Our MSC™ Technology is critical to not only creating a high-quality protein ingredient for pet food, but also allowing ethanol plants to achieve greater corn oil yields” said Neal Jakel, President of Fluid Quip Technologies, “FQT is excited to commission our largest MSC™ System and continue to collaborate with our customers to maximize the value of every kernel of corn. The project is a testament to the market and value the team has achieved as nutrition customers look for more corn fermented protein to utilize in their rations.”
Fluid Quip Technologies provided the MSC™ Technology as well as the engineering, design, procurement, construction management and startup services for the project. The completion of this MSC™ System brings overall production capacity of FQT MSC™ protein products to over 750,000 tons per year. The thirteenth FQT MSC™ system is currently under construction at the Ensus UK Limited’s facility in the UK.
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and process engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience and know-how within the 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 biofuels and biochemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.
Read the original press release here.
Jul 31, 2024
U.S. fuel ethanol production reached a record high of 1.109 million barrels per day the week ending July 26, up slightly from the previous record of 11.08 million barrels per day set late 2017, according to data released by the U.S. Energy Information Administration on July 31. Both fuel ethanol production and stocks were up 1% when compared to the previous week, while exports were up 2%.
Fuel ethanol production averaged 1.109 million barrels per day the week ending July 26, up 14,000 barrels per day when compared to the 1.095 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending July 26 was up 42,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 23.973 million barrels, up 250,000 barrels when compared to the 23.723 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 26 were up 1.113 million barrels.
Exports of fuel ethanol averaged 58,000 barrels per day the week ending July 26, up 1,000 barrels per day when compared to the 57,000 barrels per day of exports reported for the previous week. When compared to the same week of last year, exports for the week ending July 26 were down 83,000 barrels per day. No fuel ethanol imports were reported for the week ending July 26.
Read the original story here.
Jul 19, 2024
An opinion piece published in the Republican Eagle on July 12 by the Lake Pepin Legacy Alliance presented a one-sided view of the environmental benefits of ethanol and mislead readers into believing that ethanol is not a climate-friendly alternative to petroleum (“Maintain Climate Guardrails in Farm Bill”).
Contrary to the assertion in the piece, research from federal agencies including the U.S. Department of Energy and the U.S. Department of Agriculture have confirmed that ethanol is a low-carbon fuel with 40-50 percent less emissions than petroleum on a lifecycle basis.
The 2022 study cited by the authors to claim that ethanol is worse for the climate has been debunked by climate scientists upon peer review. Those researchers noted that the discredited study made “questionable assumptions,” “double counted” emissions, and used “outdated and inaccurate projections” to come to a biased conclusion against ethanol.In reality, ethanol not only reduces greenhouse gas emissions but also replaces toxic aromatic compounds in gasoline and reduces carcinogenic emissions like benzene, toluene, xylene, and other hydrocarbons that increase the risk of cancer, according to research conducted by the Minnesota-based Hormel Institute.
Had the authors undertaken a comprehensive review of the science, they would have found that the evidence overwhelmingly shows that ethanol has positive climate and human health benefits.
While we may not see eye-to-eye on that point, we agree with the authors on the need to maintain climate funding in the Farm Bill as a way to further assist Minnesota growers in implementing conservation practices like cover crops and no-till farming that will sequester more carbon in the soil, reduce runoff, and lower the carbon intensity of ethanol on a lifecycle basis.
We look forward to working with them, and our congressional federal delegation, to support Minnesota’s environment and economy through a timely Farm Bill reauthorization.
Brian Werner
Executive Director, Minnesota Biofuels Association
Read the original letter here.
Jul 15, 2024
CoBank maintained its positive outlook for U.S. ethanol production in its latest Quarterly Research Report, released July 11, with higher margins and a strong export market continuing to benefit ethanol producers.
According to CoBank, sustained lower corn and natural gas prices have helped boost ethanol margins. Well-managed facilities will continue to take advantage of the higher margin environment in the months ahead, the report predicts.
The recent narrowing of the ethanol price discount to gasoline could affect price-sensitive markets, CoBank said in the report, but noted that the summer driving season does help offset some price challenges.
While domestic ethanol demand has tracked lower in tandem with decreased gasoline demand in recent months, export demand has been strong. Within the report, CoBank cites the USDA’s May forecast that 2024 fuel ethanol exports could reach $4 billion this year, matching the fiscal year 2022 record.
CoBank’s report also addresses the outlook for corn, explaining that the USDA shocked the market at the end of June with higher-than-expected totals on corn acreage and stocks. Planted corn acreage is up nearly 2% when compared to data gathered as part of the USDA’s March Prospective Plantings survey. Corn stocks were also well above expectations. CoBank said the larger planted acreage and higher stocks should provide some cushion against potential production losses from widespread floods that occurred across Iowa, Minnesota and South Dakota in June. In addition to flooding, the U.S. corn crop also risks yield losses form expected extreme heat this summer.
A full copy of the report is available on the CoBank website.
Read the original story here.
Jul 9, 2024
A new study by economists at UC Berkeley and the U.S. Naval Academy found California drivers could expect to save 20 cents per gallon if the state allowed gas stations to sell E15 fuel – a blend of 15 percent ethanol and 85 percent gasoline approved in all 49 other states.
The potential savings for California consumers could reach $2.7 billion annually, according to the study authored by David Zilberman, PhD, a distinguished professor in the Agricultural and Resources Economics Department at UC Berkeley, and Scott Kaplan, PhD, assistant professor in the Economics Department at the United States Naval Academy.
“Consumers have the potential to gain significantly from the introduction and purchase of E15,” according to the study. “In particular, our estimates suggest an approximately 20 cents per gallon discount for E15 compared with E10 after adjusting for energy content.” The authors also highlighted the benefit of E15’s lower carbon emissions. “In California, price savings for lower GHG intensity fuels are larger, likely due to California-specific policies incentivizing low carbon fuels.”
California is the last remaining state to limit ethanol inclusion in gasoline to just 10 percent (E10), but state regulators are considering approval of E15 after extensive vehicle testing showed the fuel offers important emissions benefits. E15 is legally approved by the U.S. Environmental Protection Agency for use in all cars, pickups, SUVs and vans manufactured in the last 24 years.
The study, sponsored by the Renewable Fuels Association, details the economic viability and implications of adopting E15 in California by analyzing fuel characteristics, market dynamics, and regulatory influences. Beyond direct cost savings, researchers found that increased use of ethanol-blend biofuels lowers gasoline usage, enhances energy security and reduces greenhouse gas emissions.
“Based on this study’s results, a typical California household could save $200 per year on their gas bill if state regulators would simply allow drivers to fuel up on E15,” said RFA President and CEO Geoff Cooper, noting that more than 24 million registered vehicles in California are already approved to use E15, but stations are not allowed to sell it. “It’s time for California to catch up to the other 49 states that already allow consumers to choose lower-cost, lower-carbon E15. The state’s failure to approve the use of E15 essentially amounts to a gas price hike at a time when hardworking Californians can least afford it.”
The study also found that “low-income commuters may stand to gain the most from a transition towards E15,” given their propensity to have longer commutes and less fuel-efficient vehicles.
An earlier study commissioned by the California Air Resources Board found that adopting E15 in California could also provide significant environmental benefits, cutting emissions of tailpipe pollutants—like particulate matter and carbon monoxide—that cause air quality and human health problems.
Read the original press release here.
Jul 3, 2024
U.S. ethanol exports reached the highest level ever for the month of May at 154.4 million gallons (mg), though this represented a 28% decline from a near-record in April. In a shift from recent trends, shippers targeted just twelve markets. Canada was the largest importer for the 38th consecutive month, despite a 4% decrease to 59.7 mg. The Philippines imported the largest monthly volume since October 2018 with an 82% jump to 16.0 mg. Exports also expanded to the European Union (14.2 mg, +3%), South Korea (13.0 mg, +8% to a 15-month high) and Singapore (9.1 mg, +452%). The remaining fifth of U.S. ethanol exports landed in the United Kingdom, Colombia, Brazil (for the second consecutive month), Mexico, Vietnam, Peru, and Jamaica. Year-to-date U.S. ethanol exports totaled 816.9 mg, up 43% from the same period last year.
The U.S. did not log any meaningful imports of foreign ethanol in May (141,806 gallons of undenatured fuel ethanol shipped from Brazil and Canada). Year-to-date imports stand at 1.4 mg.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, climbed 4% to 1.01 million metric tons (mt) on mixed markets. Shipments to Mexico declined by 15% to 198,438 mt, yet volumes were sufficiently strong to remain our top DDGS customer for the fifth straight month. Exports also decreased to South Korea (114,029 mt, -8%), Indonesia (84,884 mt, -33%), Vietnam (78,183 mt, -22%), Canada (55,799 mt, -8%), and Turkey (35,807 mt, -0.3%). Offsetting these reductions was a sizeable export expansion to the European Union (108,420 mt, +128% to a 28-month high), Colombia (40,035 mt, +89%), and China (39,962 mt, +99% to a 28-month high). The remaining quarter of U.S. DDGS shipments were spread across 30 countries. Year-to-date DDGS exports reached 4.93 million mt, up 18% compared to the previous year.
Read the original story here.
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Jun 27, 2024
By Geoff Cooper, RFA President and CEO
In early 2022, University of Wisconsin researcher Tyler Lark published a study claiming that U.S. farmers had converted several million acres of pristine grassland and other “seminatural areas” to cropland in response to the Renewable Fuel Standard and growth in ethanol production.
The study was accompanied by a well-funded, well-orchestrated public relations blitz that resulted in dozens of news articles and editorials, widespread radio and TV coverage, and echo-chambering on blogs and social media channels. Even though the study’s methods and findings were roundly criticized and swiftly rebuked by the scientific community, the massive PR push behind the study unfortunately succeeded in spreading the “land use change” myth far and wide.
Two years later (March 2024), Lark published another study on land use change. Only this time there was no big publicity campaign. No interviews on NPR, no pithy feature story on Fox News or HBO talk shows, no social media blasts, no TIME magazine pieces, no National Wildlife Federation press conferences, no congressional staff briefings (those are all things that really happened after the 2022 study). In fact, the newest Lark study made about as much noise as a tree falling in the woods.
Why? What changed? How come there wasn’t a massive PR effort around the new land use study?
Put simply: the results of the new Lark paper don’t fit the doomsday narrative that was carefully crafted by media-savvy PR firms following the release of 2022 study. Indeed, the new Lark study actually contradicts and undermines his study that made headlines two years ago. That’s why they’re keeping it quiet.
Using the same satellite imagery approach that Lark used for the 2022 study, this newest study shows that between 1986 and 2018—a timeframe that encompasses the period of rapid growth in ethanol production—more than 30 million acres of U.S. cropland were abandoned and transitioned into grassland/permanent pasture, forest, shrubland, wetlands, urban areas, and other uses.
Wow! That’s right…rather than claiming cropland expanded into grassland and forest areas during the biofuels era (like his previous papers), this new Lark study suggests the exact opposite occurred.
According to the new analysis, U.S. cropland area significantly receded over the 33-year period examined—and in its place, grassland, permanent pasture, trees, and shrubs sprang up. Some of the ground was enrolled in CRP, but most was not. Lark and his colleagues concluded that “among the abandoned croplands, 53% changed to grassland and pasture, 18.6% to shrubland and forest, 8.4% to wetlands, and 4.6% to non-vegetated lands” (it seems likely that “non-vegetated land” is mostly urban/suburban land).
These findings appear generally consistent with land use data from the U.S. Department of Agriculture and EPA, which show steadily declining cropland area and stable or increasing forest and grassland over the past several decades.
To put 30 million acres of abandoned cropland into context, consider that roughly 27 million acres of cropland were used to produce 15.6 billion gallons of ethanol and nearly 40 million tons of distillers grains animal feed last year. So, according to Tyler Lark, we’ve lost more cropland in the past three decades than we actually use today for ethanol and its many co-products. It’s also noteworthy that the 2022 Lark study’s highly flawed estimate of land use change (i.e., so-called “natural lands” converted to cropland) caused by the RFS was 4.4 million acres—seven times smaller than Lark’s new estimate of the amount of cropland that transitioned to grassland, pasture, forest, shrubland and other non-crop uses.
So, where did the abandonment of cropland and growth in grassland, forest, shrubland, and wetlands primarily occur? According to the new Lark study, areas with the highest amount of conversion from cropland to non-cropland were the Dakotas, Kansas, Montana, Oklahoma, and Texas. Minnesota, Iowa, Missouri, Illinois, Wisconsin, Indiana, Ohio, and Michigan also had large amounts of abandoned cropland that transitioned into grassland, forest, and other land types.
Ironically, these are many of the same states where previous Lark studies claimed significant cropland expansion into native lands was occurring—especially the Dakotas, Minnesota, southern Iowa, and northern Missouri. The new study suggests some counties in those same states saw as much as 20-30% of total cropland abandoned and transitioned into other land types between 1986 and 2018.
Moreover: “The cropland abandonment we identify here is expected to persist,” the authors wrote.
They also found that “urban development is another important cause of cropland loss,” and specifically noted Chicago, Milwaukee, Indianapolis, Minneapolis, Detroit, St. Louis and Columbus as cities where urban sprawl has displaced productive cropland.
Now, before you go thinking this group of researchers has finally seen the light, it’s important to note that this new study suffers from many of the same methodological problems and flaws as their previous satellite imagery work (e.g., lumping pasture and grass hay ground together with native grassland; misclassification of certain land cover types in the “Cropland Data Layer” tool).
Nonetheless, it’s intriguing to see Lark and his colleagues arriving at conclusions that so clearly undercut and further discredit their previous land use change studies.
Hopefully, the PR machine that ginned up all the publicity on the 2022 Lark study has a new seven-figure campaign in the works to publicize these results on the substantial amount of cropland abandonment and the remarkable increases in efficiency experienced throughout U.S. agriculture. Will the environmental groups aligned with Lark ask their PR firms to pitch this story to reporters? Will Lark go back on public radio to correct the record? Will Fox News’ Greg Gutfeld or HBO’s John Oliver pick up the story and do a mea culpa after being misled by Lark’s previous work?
We’re not holding our breath.
Read the original story here.
Jun 26, 2024
Increased use of lower-carbon liquid fuels in light-duty vehicles would lead to larger and faster reductions in greenhouse gas (GHG) emissions than EPA’s recently finalized EV-forcing tailpipe emissions standards, according to a new study commissioned by the RFA and executed by an independent not-for-profit research institute.
“Lowering the carbon intensity of liquid fuels can reduce CO2 emissions faster than [electric] vehicles can displace the existing fleet,” according to the study. With a modest fuel carbon intensity reduction of just 1.25 percent per year nationwide, “the cumulative CO2benefit from 2027 to 2032 would be 77 percent larger than required by the EPA standards.” The study notes that “this CO2benefit could be achieved with a dramatically smaller on-road BEV fleet” than is anticipated by EPA under the new tailpipe standards.
The study also found that if automakers rely primarily on BEVs to meet EPA’s tailpipe standards and if 17 states adopt California’s “zero emissions vehicle” mandate, U.S. liquid fuel consumption in 2035 will fall 38 billion gallons (compared to 2022 levels) and electricity consumption will jump 480 terawatt hours (roughly twice as much electricity as California uses annually).
“Not only are EPA’s tailpipe standards based on the false premise that battery electric vehicles somehow have zero GHG emissions impacts, but the agency also failed to consider alternative solutions—like lower carbon liquid fuels—that could achieve the same goals more quickly and cost-effectively,” said RFA President and CEO Geoff Cooper. “This study shows that a nationwide move to reduce carbon intensity by just 1.25 percent per year would almost double the carbon savings expected by EPA under the tailpipe regulation, while allowing more light-duty vehicle and fuel options for consumers. The study also provides startling projections of the liquid fuel demand destruction and surge in electricity consumption that could result from EPA and California vehicle standards.”
A second study by the research institute shows that if the existing fleet of flex fuel vehicles (FFVs) used modestly larger amounts of E85, substantial GHG emissions reductions could be achieved. And, if those FFVs usedonly E85, GHG emissions would be reduced by up to 54 million metric tons per year—equivalent to almost 40 percent of EPA’s estimated GHG savings in 2035 from the new tailpipe standards.
“Widespread use of E85 would have significant greenhouse gas emissions benefits,” the study concluded. According to the study, rapid growth in E85 “could achieve a large fraction” of the expected benefit from EPA’s tailpipe regulation “because E85 would improve life cycle CO2emissions for a large fleet of existing vehicles, not just new vehicles.”
The study notes that using E85 in FFVs, which account for more than 8 percent of today’s on-road fleet, also would save consumers money at the pump. “In addition to the greenhouse gas benefits, E85 generally offers a retail price advantage,” the study found. “If all FFVs nationwide consumed only E85, it would result in annual savings of over $2.2 billion,” even when prices are adjusted to reflect E85’s lower energy density.
“This study indicates that in the headlong rush to EVs, federal and state policymakers are overlooking an incredibly effective tool for reducing GHG emissions from the existing fleet,” Cooper said. “Nearly 21 million FFVs are already on the road today and they could produce enormous GHG emissions benefits if government leaders would simply put more emphasis and encouragement behind the use of low-carbon fuel blends like E85.”
Cooper said the results of the study underscore another important error in EPA’s tailpipe regulation. “Automakers are strongly compelled to build more BEVs because EPA’s regulation assumes they have zero emissions,” Cooper said. “Yet, at the same time, EPA’s regulation discourages automakers from building new E85-capable FFVs because those vehicles are assumed to offer no benefit over gasoline vehicles, even though this study—and lots of other research—shows E85 provides at least a 35 percent GHG savings.”
Read the original press release here.
Jun 20, 2024
Revisiting the Role of Ethanol in Transport Decarbonisation
The Climate Ethanol Alliance (CEA), representing interests in Europe, the US, and Asia, has been established to advance transport decarbonisation. The Alliance brings together bioethanol producers, service providers, and input suppliers within the bioeconomy to support the climate action goals of the Paris Agreement and accelerate the transport sector's transition towards low carbon emissions.
Founded by Pannonia Bio and the Renewable Fuels Association, with support from Eco-Energy, IFF, Lallemand, Murex, and Praj, the Climate Ethanol Alliance is committed to promoting renewable ethanol as a sustainable alternative to oil. The Alliance advocates for evidence-based policymaking in transport decarbonisation.
With over two decades of real-world evidence, ethanol has demonstrated its viability as an alternative to oil. Continuous technological innovation within the bio-based economy has resulted in significant benefits for the climate, rural development, farming, energy independence, and air quality.
As climate change mitigation and transport priorities evolve, the role of ethanol is being reassessed for its potential as a sustainable solution.
- Drawing on more than a decade of real-world experience, the CEA emphasizes the importance of evidence-based policymaking. Revisiting and rebranding ethanol is essential, given its proven effectiveness and cost-efficiency.
- The introduction of High-Octane Fuels is deemed necessary for liquid fuel standards to deliver on climate goals. Standardizing E20 (20% ethanol blended in petrol) with increased octane is identified as a critical step forward.
- The ethanol industry is well-positioned to lead carbon removal efforts. Recognizing the cost-effectiveness of Fermentation Carbon Capture and Storage (FCCS) is vital for policy frameworks aimed at addressing climate change.
The Climate Ethanol Alliance partners advocate for policies that deliver tangible results and actions that effectively contribute to climate mitigation efforts. They believe it is time to align policy discussions with the reality of ethanol's capabilities and contributions.
Read the original press release here.
Jun 14, 2024
By Association of Equipment Manufacturers
Biomanufacturing advocates on June 10 released a new report that provides a closer look at the employment, wages, and economic activity driven by the U.S. industrial bioeconomy. Authored by TEConomy Partners, LLC, the report, “The Economic Impact of the U.S. Industrial Bioeconomy,” illuminates an increasingly important segment of the U.S. economy associated with biomanufacturing and bioproducts (those other than food, beverages, and pharmaceuticals). Included in the report are state and federal figures for economic activity tied to the transformation of renewable biomass into fertilizers, bioplastics, biofuels, bio-lubricants, and a host of other industrial bioproducts, as well as the research and development of microbes, enzymes, biocatalysts, and other technologies used in modern biomanufacturing. Supporting expansion in the sector is a key goal of the National Biotechnology and Biomanufacturing Initiative, as outlined by President Biden.
“Our abundant natural resources, unparalleled agricultural sector, and strong leadership in the sciences have combined to establish America’s industrial bioeconomy as a powerful engine for U.S. growth,” said Curt Blades, senior vice president of industry sectors & product leadership at the Association of Equipment Manufacturers. “These are high-tech jobs, often in union-heavy supply chains like those for biofuels, that add value to the economy at every stage. With the right support from Washington and a continued focus on renewable products, this segment has the potential to turbo-charge U.S. manufacturing.”
According to the report, in 2023, the U.S. industrial bioeconomy supported nearly 644,000 domestic jobs, contributed $210 billion to the U.S. GDP, and drove $49 billion in wages. In terms of total economic output, the top five states were Illinois, Iowa, California, Nebraska, and Minnesota. Other states, Georgia and Ohio, broke into the top five when looking specifically at direct and total employment, respectively.
“The U.S. industrial bioeconomy has remained a consistent source of domestic jobs and manufacturing strength without the need for any special strategies to bring jobs back from overseas,” explains the report. “The significant jobs multiplier demonstrates this key facet of the U.S. industrial bioeconomy. The U.S. industry provides jobs, economic activity, and sustainability throughout the U.S. A considerable competitive and policy advantage of these industrial bioeconomy jobs is their tie to U.S. soil, both literally and figuratively—these jobs are here and stay in the U.S.”
The report also found that the average industrial bioeconomy worker took home $133,600 in annual compensation and that each direct job in the sector generates or supports more than 11 additional jobs through indirect means, such as the purchase of raw materials, including agricultural commodities, and other inputs..
“Relative to other industrial sectors, the extended domestic supply chain of the U.S. industrial bioeconomy generates outsized secondary economic benefits,” wrote the authors. “This is especially true of domestic employment, where each direct job supports 11.08 additional indirect and induced jobs (total employment multiplier of 12.08). For comparison, the employment multiplier for the sector that includes solar photovoltaics is 6.50 and the multiplier for the sector that includes wind turbines is 3.73.”
The report was commissioned by a coalition of leading innovators, manufacturers, and trade associations committed to expanding the U.S. bioeconomy. Supporters include the Association of Equipment Manufacturers, Clean Fuels Alliance America, National Corn Growers Association, Growth Energy, Renewable Fuels Association, ADM, Aemetis, Bayer, Bunge, Marquis Energy, Novonesis, and POET.
Read the original story here
Minneapolis, MN – (June 11, 2024) – Jeanne McCaherty, CEO of Guardian Energy Management, LLC, was recognized as the winner of the Women in Ethanol Award (WIE) on the morning of Tuesday, June 11 at the International Fuel Ethanol Workshop & Expo (FEW), the world’s largest ethanol conference, taking place this week in Minneapolis, Minnesota. She was presented this award to recognize her growth, collaboration, and vision for the biofuels industry at the International Fuel Ethanol Workshop & Expo (FEW).
McCaherty was awarded this honor during the second annual award ceremony. Ethanol Producer Magazine recognized women within the ethanol industry and highlighted the crucial role women play in the growth and success of the ethanol industry. The award ceremony celebrated all women who have made significant contributions to the industry, whether it be through scientific research, business leadership, or advocacy efforts.
McCaherty has been a demonstrated leader within the ethanol industry by successfully managing the operations of three leading ethanol plants across three states. Along with being the CEO of Guardian Energy Management, LLC, she became a Chairperson for Renewable Fuels Association (RFA) in 2020 and is the first woman to hold this position in any ethanol trade group. McCaherty holds esteemed positions on the board of directors for Renewable Products Marketing Group (RPMG), Minnesota Biofuels Association, and is a member of Minnesota Governor’s Biofuels Council. Beyond her professional duties, Jeanne's leadership serves as a beacon for aspiring women in the industry.
“We are honored to name Jeanne as the 2024 recipient of the Women in Ethanol Award,” said Anna Simet, editor at BBI International. “This year, we received an outstanding 20 nominations, and it was a privilege to learn about the accomplishments of all these women. Jeanne is a perfect example of the kind of ethanol industry trailblazers we aim to recognize and celebrate with this special award.”
McCaherty’s nominator described her leadership and being an inspiration for women within the ethanol industry. “In a landmark achievement, Jeanne ascended to the role of the first female chairperson in the RFA's storied history in 2020, marking a significant milestone not only within the organization but also in any national ethanol trade association. Additionally, she has lent her expertise to the Minnesota Governor’s Biofuels Council.” Her nominator continued, “Her visionary leadership was instrumental in initiating networking events for women at the National Ethanol Conference (NEC) during her tenure as Chairperson of RFA. Jeanne embodies the qualities of a trailblazer and an inspiration to all women in the ethanol sector.”
The 40th annual FEW began on Monday, June 10 and will run through Wednesday, June 12 at the Minneapolis Convention Center. As the FEW continues to grow, the event has over 600 biofuels producers, 2,400 professionals registered, and over 350 companies displayed on the expo hall floor.
Jun 6, 2024
In April, U.S. ethanol exports exceeded the 200-million-gallon (mg) mark for only the second time in history, driven by robust demand from major markets and several record highs. Exports rallied by 34% to 214.2 mg, the highest volume since the record set in March 2018. Canada continued to be the largest importer for the 37th consecutive month, taking in 62.3 mg, a 31% increase and six-month high. The United Kingdom saw an 80% surge to a record 34.2 mg. Conversely, exports to India and the European Union decreased to 18.3 mg (-15%) and 13.9 mg (-31%), respectively. Several other larger markets reached multiyear highs, including Oman (12.4 mg), Brazil (11.9 mg), Nigeria (10.1 mg), Mexico (9.8 mg), and the Philippines (8.8 mg). Notably, April was the first time since May 2022 that significant volumes landed in Brazil. Year-to-date U.S. ethanol exports totaled 662.5 mg, up 38% from the same period last year and marking the highest volume in six years.
The U.S. did not log any meaningful imports of foreign ethanol in April (Brazil shipped 70,204 gallons of undenatured fuel ethanol). Year-to-date imports stand at 1.1 mg.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, decreased 8% to 970,164 metric tons (mt) despite growth across most larger markets. Shipments to Mexico rebounded by 36% to 233,715 mt, maintaining its position as our top DDGS customer for the fourth straight month. Indonesia set a record with a 14% increase to 126,042 mt, surpassing South Korea, which saw imports fall by 14% to a five-month low of 123,357 mt. Other larger markets showed growth, including Vietnam (99,862 mt, +10%), Canada (60,801 mt, +9%), the European Union (47,541 mt, +69%), Ireland (47,343 mt, +122%), and Morocco (40,597 mt, 150%). The remaining 20% of U.S. DDGS exports were spread across 29 countries. Year-to-date DDGS exports reached 3.91 million mt, up 22% compared to the previous year.
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Jun 4, 2024
CEDAR RAPIDS, Iowa – Fluid Quip Technologies (FQT) proudly announces the integration of its groundbreaking Distillers Corn Oil (DCO) Technology™ at the Chippewa Valley Ethanol Company (CVEC) in Benson, Minnesota. This innovative technology promises to deliver an average 20% increase in distillers corn oil yields and reduce energy costs through enhanced solids control in evaporators.
“CVEC has been a dedicated partner for many years, and we are excited to implement our DCO Technology at their facility,” said Neal Jakel, President of Fluid Quip Technologies. “This advancement will enable CVEC to achieve unprecedented oil yields, further establishing their role as a leader in the ethanol and distilled spirits industry.
“Chad Friese, General Manager of CVEC, expressed his enthusiasm for the new technology: “We are eager to see the substantial benefits of FQT’s DCO Technology in action. At CVEC, our goal is to remain at the forefront of industry innovations, and this technology is a crucial part of that mission.”
FQT’s DCO Technology™ enhances the mechanical separation of distillers’ corn oil from whole stillage, directing it into the thin stillage stream and clarifying the stream to reduce fine solids before reaching the evaporation and oil recovery systems. This process not only increases corn oil yields but also improves the efficiency of evaporators, leading to lower energy consumption and reduced operational costs.
The integration of DCO Technology™ is part of FQT’s broader Maximized Stillage Co-products™ (MSC™) protein systems. This strategic addition positions the technology as a foundational element for future advancements, including the production of high-value proteins.
Fluid Quip Technologies and Chippewa Valley Ethanol Company remain committed to pushing the boundaries of efficiency and innovation in the ethanol industry. This partnership underscores their dedication to operational excellence and sustainable technological advancements.
About Fluid Quip Technologies
Fluid Quip Technologies®(FQT) is a premier technology and process engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience within the corn wet milling and dry grind ethanol industries and leverages this experience to drive innovation in the ag processing industries for customers around the world. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the biofuels and biochemical industries for more than 30 years.
Read the original press release here.
May 30, 2024
The USDA expanded its outlook for 2024 ethanol exports in its latest quarterly Outlook for U.S. Agricultural Trade report, released May 29. The agency now expects ethanol exports to reach $4 billion this year, up $400 million from the February outlook.
Total U.S. agricultural exports in for fiscal year (FY) 2024 are currently projected at $170.5 billion, unchanged from the February forecast. Higher exports of livestock and dairy, as well as increased ethanol sales, largely offset expected reductions in grain and feed, oilseeds and horticulture products.
The USDA attributed the $400 million increase in its forecast for ethanol exports to competitive U.S. prices which facilitate a record volume projection. If achieved, the expected $4 billion in ethanol exports would match the FY 2022 record in terms of value.
According to the USDA, the per-unit values for U.S. ethanol are well below the record-highs of the previous three years, which is expected to lead to a more favorable U.S.-Brazil price spread, boosting the price competitiveness of U.S. ethanol exports. That boosted competitive is expected to clear the way for shipments to surpass the previous FY 2018 ethanol volume record of 1.6 billion gallons. The USDA said record shipments are expected to more than half of the top 10 markets, most importantly Canada, India, the U.K. and Colombia.
The report notes that Canada remains a top destination for U.S. ethanol exports by a wide margin supported by higher ethanol-gasoline blending in Ontario and Quebec. India’s push to higher fuel ethanol blending and border protection for fuel-quality ethanol create opportunity to backfill demand in the industrial chemical market, the USDA said. Exports to the U.K. remain at record levels with higher E10 blending and U.S. suppliers replacing those on continental Europe, while surging U.S. ethanol exports to Colombia are supported by the country’s recent return to E10 blending despite a countervailing duty, the agency added.
A full copy of the report is available on the USDA website.