In the News
December 16, 2015
Press Release
The Port of Seattle, Alaska Airlines [NYSE:ALK] and Boeing [NYSE:BA] are partnering to move toward a significant environmental goal: powering all flights by all airlines at Seattle-Tacoma International Airport with sustainable aviation biofuel. Sea-Tac is the first U.S. airport to lay out a long-term roadmap to incorporate aviation biofuel into its infrastructure in a cost-effective, efficient manner.
At the Sea-Tac fuel farm today, executives for the port, Alaska Airlines, and Boeing signed a Memorandum of Understanding (MOU) to launch a $250,000 Biofuel Infrastructure Feasibility Study that will assess costs and infrastructure necessary to deliver a blend of aviation biofuel and conventional jet fuel to aircraft at Sea-Tac, a crucial step toward routine biofuel use in the future.
“As leaders in aviation biofuels, this will send a signal to airlines and biofuel producers that Sea-Tac Airport will be ready to integrate commercial-scale use of aviation biofuels,” said Port of Seattle Commissioner John Creighton. “Biofuel infrastructure will make Sea-Tac Airport an attractive option for any airline committing to use biofuel, and will assist in attracting biofuel producers to the region as part of a longer-term market development strategy.”
The partners’ longer-term plan is to incorporate significant quantities of biofuel into Sea-Tac’s fuel infrastructure, which is used by all 26 airlines and more than 380,000 flights annually at the airport. Sea-Tac is the 13th busiest airport in the U.S. and will serve over 42 million domestic and international passengers this year.
Joe Sprague, senior vice president of communications and external relations for Alaska Airlines, Sea-Tac’s largest carrier and leader of the airport’s fueling consortium, said the airline wants to incorporate biofuel into flight operations at one or more of its hubs by 2020, with Sea-Tac as a first choice for the Seattle-based airline.
“Biofuel offers the greatest way to further reduce our emissions,” said Sprague. “This study is a critical step in advancing our environmental goals and stimulating aviation biofuel production in the Pacific Northwest.”
The Port of Seattle will manage the $250,000 study as the biofuel roadmapping process and, as Sea-Tac Airport’s governing authority, would handle the engineering and integration of biofuel infrastructure on Port property such as the airport’s fuel farm. An RFP for the infrastructure study will be issued in the spring of 2016, and the study is expected to be completed by late 2016. Currently, aviation biofuels are not produced in Washington state and must be imported by truck, rail or barge.
Boeing, which partners globally to develop and commercialize sustainable aviation biofuel, is providing expertise about approaches to develop a regional biofuel supply chain to serve the airport, including fuel types, fuel producers, processing technologies and integration with airplanes.
“Sustainable aviation biofuel will play a critical role in reducing aviation’s carbon emissions over the long term,” said Sheila Remes, Boeing Commercial Airplanes vice president of Strategy. “Boeing, Washington state’s largest employer, is proud to work with our customer Alaska Airlines and the Port of Seattle to power every plane at Sea-Tac with a biofuel blend and lead the way for other airports to do the same.”
Approved “drop-in” aviation biofuel is blended directly with regular petroleum-based jet fuel and used in airplanes without any changes to the aircraft or engines. Using sustainably produced biofuel reduces lifecycle carbon dioxide emissions by 50 to 80 percent compared to conventional petroleum fuel, according to the U.S. Department of Energy. Since 2011, when biofuel was approved for commercial aviation, airlines have conducted more than 2,000 passenger flights with a blend of biofuel and conventional petroleum jet fuel.
The Port’s Century Agenda Goal is to reduce aircraft-related carbon emissions at Sea-Tac Airport by 25% by 2037. The key strategy to reduce these emissions is through aviation biofuel. Historically, the Port has been a leader in supporting research and development of aviation biofuels, and as models of other international airports and airlines using biofuel emerge, Sea-Tac is also developing a market-support role.
In the past five years, Alaska Airlines has become a leader in the pursuit of finding a sustainable supply of biofuels. In 2011, Alaska was the first airline to fly multiple flights using a 20 percent blend of sustainable aviation biofuel made from used cooking oil and waste animal fat.
In the next year, Alaska will partner with Gevo, Inc. to fly the first ever commercial flight on alcohol-to-jet fuel. In addition, as a partner in the Washington State University-led Northwest Advanced Renewable Alliance (NARA), Alaska plans to fly a demonstration flight next year using a new aviation biofuel made from forest-industry waste. Fuel for both demonstration flights must first be independently certified.
As part of Boeing’s commitment to protect the environment and support long-term sustainable growth for commercial aviation, the company partners globally with airlines, governments, research institutions, fuel companies and others to develop sustainable aviation biofuel. Boeing has active biofuel projects in the U.S., Australia, Brazil, Canada, China, Europe, Japan, the Middle East, South Africa and Southeast Asia. More information: www.boeing.com/environment
Read the original release: Port of Seattle Partners with Alaska Airlines and Boeing on Plan to Supply Sustainable Aviation Biofuel at Sea-Tac Airport
Dec 17, 2015
By John McCormick
Ted Cruz's position on a requirement that's key to corn-based ethanol runs counter to the views of a solid majority of those likely to attend Iowa's Republican presidential caucuses, the latest Bloomberg Politics/Des Moines Register Iowa Poll shows.
Cruz's position, which is drawing a sustained attack against him from a pro-ethanol group trying to influence the caucuses, could threaten his standing as the Republican front-runner in a state that's key to his potential path to the nomination. Iowa is the nation's top corn and ethanol producer.
"We have to look at all sorts of ways to extend our energy supply," said Gloria Filean, a Republican from Des Moines who supports the RFS and plans to attend the caucuses. "It's good for the country to have that extra resource."
The poll also exposes the parochial nature—and potential for hypocrisy—surrounding federal assistance programs.
While majorities of likely Republican caucus-goers favor help for ethanol and government-backed crop insurance, they're generally opposed to support for other agricultural products, such as peanuts, sugar and milk, that don't do much to benefit their own state.
Government-supported crop insurance is favored by 57 percent of likely Republican caucus-goers. Subsidies for peanuts, sugar and milk are opposed by 56 percent. The one exception to the home-state favoritism: oil and gas exploration. Among Iowa Republicans surveyed, 59 percent supported tax deductions for the fossil fuels that ethanol and other alternatives are vying to displace.
Support for certain government programs that assist Iowa comes even though Republicans often call for a much smaller federal government. Cruz defends his opposition to the RFS as a matter of consistency in that regard. He says he's trying to avoid having the federal government pick "winners and losers" in the energy sector.
Likely Democratic caucus participants are more supportive of government agriculture assistance across the board. Majorities back federal assistance for ethanol (77 percent), crop insurance (74 percent) and subsidies for peanuts, sugar and milk (52 percent). On tax deductions for oil and gas exploration, however, 69 percent of likely Democratic caucus-goers are opposed.
Cruz's opposition to the RFS has made him the prime target of America’s Renewable Future, a pro-ethanol group that is led by the son of Iowa Republican Governor Terry Branstad. The group is in the midst of a three-week advertising campaign critical of Cruz that's playing out on radio stations statewide, as well as through direct mail and digital ads.
“We want Iowans to know that, unlike what Ted Cruz would like to have them believe, he is a typical politician who will say one thing in Iowa and do another in Washington,” Eric Branstad, the group's state director, said in a statement this week as part of the release of a new ad critical of Cruz. “His entire career he’s been in the pocket of the oil industry and he will continue to stand up for it against Iowa farmers and the Renewable Fuel Standard.”
Catherine Frazier, a Cruz campaign spokeswoman, didn't respond to an e-mail seeking comment.
ARF, a non-profit, was formed to organize around the ethanol issue ahead of the caucuses. The group has 17 field staffers across the state, more than many of presidential campaigns, and is active in each of the state's 99 counties.
It also says it has pledges from more than 50,000 people to attend the caucuses, with slightly more than half of those being Republicans. That's a sizable group, considering roughly 122,000 attended the 2012 Republican caucuses.
In some ways, Cruz is an easy target because he comes from an oil-rich state and has been the beneficiary of significant campaign contributions from the oil and gas industry.
He also was a co-sponsor of legislation that would repeal the RFS. Earlier in the year, he touted his stance on the issue as proof that he won't pander to those in early-voting states.
His opposition to ethanol is being highlighted at a time when farmers are under pressure because of low corn and soybean prices triggered by what appears to be a record harvest this year and plentiful global supplies.
The Iowa Poll, conducted Dec. 7-10 by West Des Moines-based Selzer & Co., included 400 likely Republican caucus participants and 404 likely Democratic caucus participants. On the full sample, it has a margin of error of plus or minus 4.9 percentage points, although higher for subgroups.
Read the original story here : Cruz Out Of Sync On Ethanol With Likely Republican Caucus-Goers In Iowa Poll
December 16, 2015
Communications Release
Last night congressional lawmakers reached an agreement on a $1.1 trillion spending bill that not only funds the government until 2016, but also contains a tax extenders package which includes several provisions of significant importance to the biofuels industry. The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Tax Credit. Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:
“By including these important tax incentives in the spending bill, congressional lawmakers sent a strong signal that they are interested in ensuring and encouraging the continued growth and innovation of our nation’s biofuels industry” said Dinneen. “These incentives are crucial for leveling the playing field in a tax code that is, unfortunately, overwhelmingly tilted toward the oil and gas industry. Oil companies have long benefited from billions in accelerated depreciation, intangible drilling expenses, and countless other tax breaks that are permanently imbedded in the tax code. Fundamental tax reform is critical to correct this imbalance.”
Lawmakers also included a repeal of Country of Origin Labeling (COOL) in the spending bill. COOL is a labeling law that requires retailers to notify their customers with information regarding the source of certain food and agricultural products. The World Trade Organization (WTO) had determined COOL violated trade agreements and recently ruled Canada and Mexico could seek up to $1 billion in retaliatory tariffs. Canada had previously threatened to place ethanol on a list of products that could be subject to retaliatory tariffs if the law was not repealed.
“The repeal of COOL removes a long-standing threat to the continued fair and free trade of ethanol with Canada. Its repeal will allow domestic producers to be able to trade ethanol in the global marketplace without fear of a retaliatory tariff from our largest ethanol export market,” said Dinneen.
Read the original story: RFA: Tax Incentives will Encourage Growth and Innovation in Nation’s Biofuels Industry
December 14, 2015
By Erin Voegele
The National Renewable Energy Laboratory has released its 2014 Data Book, showcasing increased use of renewable energy. According to the report, renewables accounted for approximately 11.1 percent of U.S. energy production in 2014. U.S. energy production totaled approximately 87 quadrillion Btu (quad) in 2014, with renewables accounting for 9.7 quad of that amount.
Natural gas accounted for 35 percent of U.S. energy production in 2014, with coal accounting for 23.3 percent. Crude oil accounted for 21 percent and nuclear accounted for 9.6 percent.
Biomass accounted for 5.6 percent of energy projection followed by hydropower at 2.8 percent, wind at 2 percent, solar at 0.5 percent and geothermal at 0.3 percent.
U.S. energy consumption reached 98.3 quad last year, with 35.4 percent of that volume coming from petroleum, 28 percent from natural gas, 18.2 percent from coal, 8.5 percent from nuclear and 9.8 percent from renewables. Biomass accounted for 4.9 percent, followed by 2.5 percent for hydropower, 1.8 percent from wind, 0.4 percent from solar, and 0.2 percent from geothermal.
Regarding ethanol, the report indicates U.S. production increased by nearly 7.6 percent in 2014, reaching 14.3 billion gallons. The increase was experienced despite sharp ethanol and gasoline price decreases. In comparison, only 1.622 billion gallons of ethanol was produced in 2000.
Last year, the U.S. produced an estimated 58 percent of the world’s ethanol. Brazil produced 25 percent, while the European Union produced 6 percent, China produced 3 percent and Canada produced 2 percent. On a global basis, ethanol production has increased from 10.77 billion gallons in 2004 to 24.57 billion gallons last year.
Of the 19,282 alternatively fueling stations in the U.S., NREL reports 15 percent supply E85. Approximately 57 percent supply electricity, while 15 supply propane, 8 percent supply compressed natural gas, 4 percent supply B20, 0.6 percent supply liquefied natural gas, and 0.3 percent supply hydrogen.
Iowa is the top state for ethanol production, with 3.99 billion gallons of capacity, followed by Nebraska with 1.99 billion gallons, Illinois with 1.43 billion gallons, Minnesota with 1.13 billion gallons and Indiana with 1.05 billion gallons.
The report also addresses biodiesel, reporting that the U.S. led the world in biodiesel production last year, followed by Germany, Brazil, Argentina, France and Indonesia. Globally, biodiesel production grew from 555 million gallons in 2004 to 7.85 billion gallons in 2014.
In the U.S., biodiesel production reached 1.8 billion gallons in 2013, falling to 1.75 billion gallons last year. In 2001, the U.S. produced only 5 million gallons of biodiesel.
A full copy of the report is available on NREL’s website.
Read the original story: NREL's 2014 Data Book Features Ethanol Statistics
December 8, 2015
By William Petroski
Supporters of the Renewable Fuels Standard, seen as key to the future of Iowa’s corn-based ethanol production, are ramping up criticism of Texas Sen. Ted Cruz, saying he’s the only presidential candidate from both parties who has refused to either tour a biofuels plant or meet with industry lobbyists.
Critics of Cruz, whose has been rising in polls in a crowded field of Republican candidates, held a news conference Tuesday at Lincolnway Energy in Nevada. They accused him of abandoning 75,000 Iowans employed in the renewable fuels industry while supporting subsidies for the oil industry.
“Every candidate, good or bad, has respected Iowans and the caucus process by sitting down with us and learning about the RFS, except for Ted Cruz,” said Eric Branstad, executive director of America’s Renewable Future, a pro-biofuels lobby group. The federal government's Renewable Fuels Standard requires renewable fuels like ethanol to be blended into transportation fuels like gasoline.
Branstad was joined by former U.S. Sen. Rick Santorum, a longtime supporter of the Renewable Fuels Standard who is seeking the GOP presidential nomination. Santorum claimed that Cruz is supporting the oil industry over Iowa’s biofuels industry.
“They don’t want a competing product coming in and getting market share. That is the bottom line,” Santorum told reporters after touring the Lincolnway Energy plant here. The plant produces 60 million gallons of ethanol annually.
Last week, Cruz asked Iowa radio stations to stop running an advertisement sponsored by America's Renewable Future. The 60-second ad, entitled “Hypocrite,” claims Cruz has $700,000 in personal oil investments and that pro-Cruz super PACs received $25 million in donations from oil companies.
Rick Tyler, a spokesman for the Texas U.S. senator, said in a statement to The Des Moines Register last week, "It is blatantly false to suggest that Sen. Cruz wants to end the Renewable Fuel Standard while maintaining subsidies for oil. Cruz has repeatedly stated that he would end all energy specific subsidies, both ethanol and oil among others."
Cruz’s campaign issued a statement Tuesday that the Texas senator looks forward to America’s Renewable Future endorsing Cruz’s flat tax plan that eliminates all loopholes, stops corporate welfare, and specifically allows every company, including ethanol producers, to immediately expense all of their capital costs, treating everyone fairly, without subsidy.
The Dallas Morning News reports that Cruz has at least $365,000 in oil and gas investments, according to a July personal finance disclosure. Three Texas energy billionaires donated $25 million in total to super PACs backing Cruz’s presidential bid, the newspaper reported.
U.S. Rep. Steve King, R-Kiron, a strong supporter of the Renewable Fuels Standard, endorsed Cruz’s presidential candidacy last month, calling him “the Constitutional conservative who can restore the soul of America.” King said he wanted to do everything he could to support Cruz’ campaign for the White House.
Branstad said Tuesday that King has been a powerful ally for the renewable fuels industry and he hopes the Iowa congressman is sharing information with Cruz. But he expressed disappointment that Cruz has ignored “invitation after invitation” to discuss renewable fuels issues.
“He came to Iowa with his allegiance already established the oil industry, not Iowans and not our caucus process,” Branstad said.
This list of presidential hopefuls who have met with biofuels industry supporters includes 12 Republican candidates, plus Democratic White House hopefuls Hillary Clinton, Martin O’Malley and Bernie Sanders.
Read the original story: RFS Supporters Ramp Up Cruz Criticism
December 8, 2015
By Renewable Fuels Association
In a letter submitted Dec. 8 to the U.S. EPA, the Renewable Fuels Association urged the agency to take immediate administrative action to eliminate an arcane regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends.
“Many gasoline retailers have rejected E15 because EPA’s current gasoline volatility regulations make it nearly impossible for them to sell E15 to EPA-approved conventional automobiles year-round,” said Bob Dinneen, RFA President and CEO. “Most gas stations are unwilling to dedicate storage tanks and dispensing equipment to a fuel that they can only sell for part of the year.”
EPA’s current regulations, which grant a volatility waiver to E10 (referred to as the “1-psi RVP waiver”) but not to any other ethanol blends, have created an uneven playing field for E15 and other higher-level blends. According to the RFA letter, “The 1-psi RVP waiver—originally provided to expand the production and use of fuel ethanol—is now having the perverse effect of discouraging greater ethanol use in today’s gasoline market, and it is obstructing the successful implementation of important fuel and carbon reduction policies enacted since then, including the renewable fuel standard.”
Rather than asking EPA to extend the 1-psi RVP waiver to E15, RFA’s letter encourages the agency to take action to eliminate the relevancy of the waiver for E10 by requiring refiners to slightly lower the volatility of summertime conventional gasoline blendstock. This would ensure that retailers can freely offer E15 to conventional automobiles year-round. It would also clear the way for higher-level ethanol blends like E20 or E25 to meet applicable gasoline RVP requirements.
Anticipating familiar claims from the oil industry that such an administrative action would “raise gasoline prices,” RFA also submitted third-party analysis to EPA showing that lowering the volatility of gasoline blendstock by 1.0 psi in the summertime might be expected to add just $0.006 per gallon in refining costs. However, this cost would not likely be translated to retail prices because it would be offset by blending more ethanol (which, historically, has been priced well below gasoline blendstock at wholesale).
Moreover, reducing the volatility of gasoline blendstock to facilitate greater ethanol blending would have positive implications for air quality. A separate third-party analysis provided by RFA showed that lowering gasoline volatility by 1.0 psi would reduce emissions of carbon monoxide, nitrogen oxides, and volatile organic compounds.
In closing, the letter notes that “This action would improve air quality, remove arcane barriers to innovation and consumer choice in the retail fuel marketplace, simplify engineering of emissions control systems, and help facilitate compliance with renewable fuel standard requirements. In addition, removing the waiver would not noticeably affect refining costs.”
Read the full letter here.
Read the original story: RFA to EPA: New Gasoline Volatility Regulations Needed
December 6, 2015
Today, at the World Climate Summit under way in Paris, France, the Global Renewable Fuels Alliance (GRFA) in cooperation with (S&T)2 Consultants Inc., an internationally renowned energy and environmental consulting firm, released a new report “Green House Gas (GHG) Emission Reductions from World Biofuel Production and Use for 2015”.
The report was released to inform debate at World Climate Summit (WCS) event organized by the GRFA, the Biotechnology Industry Association (BIO) and EuropaBIO entitled: “Building a sustainable bioeconomy: harnessing the potential of bio-based products and fuels to mitigate climate change”. The purpose of the event is to:
- Provide informal input into the COP21 agenda from a range of bio innovation stakeholders
- Showcase the potential of biobased products and alternative low carbon fuels to help fight climate change
- Identify policy measures that can enable the low carbon economy and contribute to solving the problem of climate change
The report found that year after year the reduction in global GHG emissions from global ethanol production and use is increasing. The total GHG emission reductions forecast for 2014 is 169 million tonnes CO2 equivalent, which is bigger than the total GHG emissions in 28 Annex 1 countries.
“Biofuels like ethanol are the only cost-effective and commercially available alternative to crude oil and are proven to reduce harmful GHG emissions and help in the fight against climate change. There need be stronger policies to increase their use globally,” said Bliss Baker, President of the Global Renewable Fuels Alliance.
The report also includes production scenarios for 2030. Based on a conservative annual growth rate of 2.8% biofuel production and use emission savings could increase from 168.9 million tonnes per year in 2014 to 264 million tonnes CO2 equivalent in 2030. This represents a 56% increase in GHG emission reductions.
“This report sends a clear message to policy makers around the world that while the GHG emission reductions currently being delivered by biofuels are substantial, the sector can deliver much more” concluded Baker.
The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 90% of global biofuels productions. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible footprint.
Read the original release: Report: Biofuels Contribution to GHG Emissions Offsets Significant
December 7, 2015
By Representative Kristi Noem
It might surprise many of us, but there are a lot of people out in D.C. who don’t seem to know the difference between South Dakota and North Dakota.
I know my counterpart in North Dakota often gets the question: “Is that the state with Mount Rushmore?” No, that’s South Dakota. For me, the question is: “Are you the state with all of that oil?” No, that’s North Dakota, but while North Dakota has all that oil, South Dakota’s corn and soybean production plays its own role in America’s energy security.
Every year, South Dakota harvests more than 400 million bushels of corn and 100 million bushels of soybeans. These commodities provide a pathway toward North American energy independence that can help boost our economy and our national security.
Today, about one-third of the petroleum used in the United States is imported from foreign countries, according to the U.S. Department of Energy. Most of this petroleum is refined into gas or diesel. Especially with conflicts arising in energy-rich areas of our world, the need to decrease our reliance on foreign fuels grows every single day. Now is the time to double down on domestic energy production, but unfortunately, the Environmental Protection Agency (EPA) is looking to let off the gas.
In early 2014, the EPA proposed new Renewable Fuel Standard (RFS) volumes. These volume requirements, which impact corn-based ethanol and biodiesel alike, tell refineries how many gallons of renewable fuels should be blended into our overall supply. This gives both farmers and consumers more certainty and greater price stability.
The EPA’s initial proposal was very disappointing, as the agency moved to significantly roll back our commitment to ethanol and biodiesel. Not only could this curb production, but the move would send the wrong message to investors, risk jobs, and threaten the creation of more developed biofuels.
I, along with a bipartisan group of 30 lawmakers, reached out to the EPA shortly after their announcement. It was important that they reverse course.
When the final numbers were announced in late November, the RFS remained beneath the levels I believe are appropriate. Nonetheless, the EPA did adjust the requirements at least slightly higher because of the pressure we put on them.
Especially at a time when the Middle East remains so volatile, our commitment to homegrown renewable fuels should not be in doubt. While the EPA is backing down, I am not. In recent weeks, I introduced an extension of the biodiesel tax credit. This legislation would ensure that domestically produced biodiesel was given a $1-per-gallon tax credit through the end of 2016. The legislation has bipartisan support and I’m hopeful it can be wrapped into an end-of-the-year tax extenders package.
My number one responsibility is to keep the American people safe – protecting economic opportunities comes in at a close second. By throwing our support behind homegrown fuels rather than foreign oil, we are accomplishing both and creating a nation that is fueled by South Dakota in the process.
Read the original story: Keeping America fueled by South Dakota
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Global Renewable Fuel Alliance
December 4, 2015
Press Release
Today, global transport emission have increased to 14% of the world’s greenhouse gas emissions and about a quarter of the total energy-related CO2 emissions. With the UN’s Intergovernmental Panel on Climate Change (IPCC) predicting that transport emissions could double by 2050, the need for preventative policy measures by world leaders is clear and urgent. According to the IPCC, transport’s growing emissions could be cut by 15-40% through “aggressive and sustained” policy measures, including reducing carbon intensity of fuels by substituting oil-based products with biofuels.
According to the International Energy Agency, by 2050, biofuels could provide 27% of the world’s total transport fuel and avoid around 2.1 gigatonnes of CO2 emissions per year, with biofuels eventually providing 23% of total emissions reductions in the transport sector. Sustainable biofuels, such as ethanol, can be used in existing vehicle fleet to reduce greenhouse gas emissions by 40-90% compared to fossil fuels and must be considered an important part of the toolkit to decarbonize transport.
Policies mandating the use of biofuels are now in place in around 64 countries worldwide and, in their Intended National Determined Contributions (INDC) plans, 36 countries that are attending December’s climate talks in Paris have highlighted biofuels use as a key component of their national climate action policies.
Biofuels are a key driver of clean technology innovation and a key part of the global agricultural complex, helping to reduce emissions, facilitating rural development and supporting food production, particularly in poorer regions. Further deployment of biofuels could help drive investment in low carbon technology and in agriculture, increase productivity, create new employment in rural areas, reduce our global reliance on crude oil and provide a stepping stone towards a genuine bio economy.
Representing over 330 biofuels and industrial biotechnology companies that are responsible for 90% of the world’s biofuels production, we reiterate our commitment to producing biofuels sustainably and call on the parties to the UNFCCC to acknowledge the benefits of sustainable biofuels and their contribution towards climate change mitigation and the reduction of greenhouse gas from transport.
We call on world leaders to support a global target for replacing at least 15% of the world’s total oil use in transport with sustainable biofuels by 2030, with a significant presence of advanced biofuels.
See original press release: Global Biofuels and Biotech Industries Unite in Call for Stronger Biofuels Policies to Help in Fight Against Climate Change
December 7, 2015
By
The EPA's Renewable Fuel Standard decision is either a step forward or backward, depending on your point of view.
The Environmental Protection Agency announced Nov. 30 it is setting the total renewable fuel volume at 18 billion gallons for 2016, up from the proposal of 17.4 billion made earlier this year, but down from the 22.25 billion gallons in statue.
Timothy Rudnicki, Minnesota Bio-Fuels Association executive director, said his crystal ball is foggy on the effect of the decision on the biofuels industry.
"But to me it sends the wrong signal," he said. "It sends a negative message, and that is you can't count on the law upon which to build the infrastructure or the production capacity because it will be ... it can be lowered to accommodate the petroleum interest."
The American Fuel and Petrochemical Manufacturers issued a statement saying the decision is "an attempt by EPA to placate the biofuels lobby."
The Renewable Fuel Standard began in 2006 after being enacted through the Energy Policy Act of 2005. The RFS requirements were modified through the Energy Independence and Security Act of 2007.
Ethanol production in the United States has jumped from 6.5 billion gallons in 2007 to 14.3 billion gallons in 2014 and biodiesel production has grown from 0.5 billion gallons to 1.46 billion gallons during the same time period, according to the Energy Information Administration.
In their executive summary, the EPA said "while some stakeholders commented that reductions from the statutory targets would lead to a stagnation in growth, we disagree with this view.
"We proposed a 2016 volume requirement for total renewable fuel that was 1.1 billion gallons greater than the proposed 2015 volume requirement — a significant level of growth in one year," the summary reads.
Rudnicki said it's interesting the EPA, in their executive summary, writes "renewable fuels represent an opportunity for the U.S. to move away from fossil fuels towards a set of lower GHG transportation fuels and a chance for a still-developing low GHG technology sector to grow."
The RFS has been about energy security and reducing greenhouse gas emissions since its inception, Rudnicki said. It's good for the country, consumers, the environment and the economy. A study recently found 18,600-plus jobs in Minnesota are supported by the biofuels industry.
"If the petroleum industry just accepted the RFS — we know the production capacity is there — we could be exceeding where we're at today in terms of greenhouse gas reduction," he said.
The way the RFS stands now, it's hard to plan as the targets keep changing.
"For the EPA to have tinkered with the RFS and the renewable volume obligations was a big mistake," Rudnicki said. "It's like a slippery slope. Will it be changed next year? Will they find some reason to change the rule they've already set?"
The American Fuel and Petrochemical Manufacturers hope for change.
"Today's rule is further proof that the RFS program is irreparably broken and that the only solution is for Congress to repeal it outright," AFPM president Chet Thompson said in a statement.
Read the original story: How Will RFS Decision Affect the Biofuel Industry?
December 2, 2015
By Sam Schaust
Renewable chemicals company Green Biologics announced the start of construction on its 100 percent renewable chemicals manufacturing facility in Little Falls.
The site, which is being repurposed from a 21 million gallon per year ethanol plant, is said to be the first modern commercial plant in the U.S. to produce bio-based n-butanol and acetone—components used in paints, coatings, cleaning supplies and cosmetics.
Gahanna, Ohio-based Green Biologics purchased the site from The Central MN Ethanol Cooperative in December 2014. Green Biologics said it would spend a total of $76 million between the acquisition and updating of the Little Falls facility.
The company is scheduled to begin commercial production in 2016.
Read the original story: Construction Begins On Renewable Chemical Facility in Little Falls
December 3, 2015
Staff Editorial
Kudos to the Environmental Protection Agency and Obama administration for increasing preliminary Renewable Fuel Standards, but the new standard still misses the mark.
Renewable Fuel Standards — how much biofuel will be produced and blended with traditional gasoline — were initially set by Congress in 2005 and expanded and updated as part of the 2007 Energy Independence and Security Act. The 2007 requirements called for a total of 22.25 billion gallons of biofuels to be produced and distributed in 2016. Targets recently released by the EPA reduced that output to 18.11 billion gallons.
Congress had called for corn-based ethanol to make up 15 billion gallons of the total biofuel output in 2016. Yet the newly announced EPA requirements limit corn-based ethanol to only 14.5 billion gallons. The lower standard is bad for Iowa and for the environment.
Iowa’s cornfields provide one third of the nation’s ethanol. An estimated 47,000 of Iowa’s jobs are in the ethanol industry. Yet, economic self-preservation is only part of the reason we support biofuels, and the higher RFS standard.
In the 10 years that the RFS has been in existence, oil imports have been cut by one third — the equivalent of taking 8.4 million cars from the road. That is no small feat. Lessening our dependence on foreign oil moves the nation forward in the way Congress intended, and in a way we all can agree is needed.
No one would argue that corn-based ethanol is the perfect, permanent solution to energy independence, but the creation of a stable market for renewable fuels, including ethanol, is a critical bridge to the increasingly clean, sustainable energy solutions of the future.
The research and innovation happening now is due in large part to the government mandates that have been a part of the RFS. Guaranteed demand for biofuels calms the marketplace, enables necessary infrastructure and encourages investment and expansion.
The delays, uncertainty and target fluctuations that have plagued EPA’s oversight hinder this forward progress.
Farmers in Iowa and other grain-producing states, as well as investors in renewable energy, need clear and consistent standards.
We encourage federal lawmakers to push for the biofuel benchmarks they created. If the EPA is unwilling to keep on course, Congress needs to regain control of the wheel.
Read the original story: Work to Keep Renewable Fuel Standards High
The Barre Montpelier Times Argus
December 1, 2015
By Brooke Coleman
In “Ethanol is a bad deal for Vt.” (online Nov. 21), a group called the American Council for Capital Formation argues that ethanol is a bad deal for Vermonters economically and environmentally.
The allegations sound compelling, but Vermonters need to understand that these arguments are coming from oil-funded groups and lack basis in fact.
There is no better example than this one. The American Council for Capital Formation is funded by Exxon Mobil and Halliburton, among others. It is no coincidence that it spends much of its time smearing ethanol, the oil industry’s biggest competitor and political nemesis.
You have to give the group credit for trying to make absurd arguments look good. It argues that using ethanol transfers wealth to the American Midwest, where most ethanol is made. But Midwest ethanol is an alternative to Middle Eastern oil. So Vermont, the choice is yours.
The group attacks ethanol environmentally based on “independent” analysis. But the “University of Tennessee” study mentioned was funded by the ACCF. Oil companies also sponsored the “Princeton University” work they mention, and the negative ethanol polling.
Meanwhile, actual independent analysis from the Environmental Protection Agency, the California Air Resources Board and the Department of Energy confirms that using more ethanol and other biofuels reduces climate change emissions without significant land use impacts. The idea that ethanol increases gas prices is also preposterous, as the fuel has been up to $1 cheaper than gasoline per gallon for years.
The oil industry is smart. It invents creative arguments, pays for rigged research and pushes bad polling, then finds front groups to deliver it to unsuspecting Americans too busy to verify. Decide for yourself on ethanol. But check your sources, because these oil groups do not have Vermont interests at heart.
Read the original story: Misleading About Ethanol
Global Renewable Fuels Alliance
December 2, 2015
Press Release
Today, Bliss Baker, the President of the Global Renewable Fuels Alliance (GRFA), called upon world leaders participating in the United Nations Climate Change Conference (COP 21) in Paris to signal their support for biofuels as one of the tools to fight climate change.
“This conference is a real opportunity for world leaders to recognize the role that renewable fuels have played, and will continue to play, in the transition to a low-carbon global economy,” Baker said. “The climate problem is accelerating and biofuels represent one of the most cost-effective solutions to reduce oil use and greenhouse gas emissions from transport in the short and medium term,” he added.
The National Oceanic and Atmospheric Administration (NOAA) has said that October 2015 was the hottest October on record by a third of a degree making it the most above-normal month since records began being kept in 1880. This was the eighth month this year when a heat record was set, representing a record number of broken records in any year.
So far, 36 countries have already recognized the opportunity presented by biofuels in reducing GHG emissions and combating climate change, and have included them in their Intended Nationally Determined Contributions (INDC) plans. Studies have shown that most biofuels, like ethanol, are proven to reduce harmful GHGs from 40% to 90% compared to fossil fuels around the world.
“Given the significant contribution biofuel is making in reducing global GHG emissions today, we believe COP 21 participants should call for an increase in biofuel use through the introduction of supportive policies, particularly for advanced biofuels,” concluded Baker.
Read the original release: COP 21 Important Opportunity for World Leaders to Support Biofuels as One of the Solutions to Mitigate Climate Change
November 30, 2015
By Sue Retka-Schill and Holly Jessen
Positive aspects were found in the U.S. EPA’s final rule establishing the renewable volume obligations (RVO) for compliance with the renewable fuel standard (RFS), but the overall tone from industry associations responding immediately after the EPA announcement was negative.
Growth Energy co-chairs Jeff Broin and Tom Buis emphasized the progress made in piercing the blend wall. The initial proposal two years ago went backwards, Buis pointed out, and the revised proposal in May was an improvement, but still below a 10 percent blend. The final rule will push that over 10 percent.
But while pleased that the blend wall was pierced, Broin said the methodology is still troubling. “We remain concerned that the final rule continues to rely on the ‘distribution waiver’ that redefines supply as demand and was rejected by Congress when the RFS was enacted into law. Of particular concern is that by using such a waiver, the oil industry is being rewarded for its unwillingness to follow the law and invest in infrastructure to move toward cleaner, renewable fuel, which sets a dangerous precedent for the future of the program.”
The Renewable Fuels Association was more direct in expressing its displeasure. “EPA’s decision today turns our nation’s most successful energy policy on its head,” Renewable Fuels Association president and CEO Bob Dinneen said in a statement. The agency increased the blending requirements for 2016 across the board, to a total of 18.1 billion gallons, including 14.5 billion gallons of undifferentiated biofuels or corn ethanol and 230 million gallons of cellulosic ethanol.
The RFA criticized the numbers being lowered from the 15 billion specified in the law. “Data shows that EPA, in its initial RFS proposal, understated the likely market for E85 and non-ethanol conventional biofuels in 2016 by at least 440 million gallons. The data suggests there will be at least 14.7 billion gallons of undifferentiated renewable fuel blended next year. With approximately 2 billion surplus RIN credits already available for refiners to use for compliance in 2016, and with another 900 million RINs potentially becoming available from 2015 over-compliance, the EPA’s decision to lower the 2016 RVO below the statutorily imposed level of 15 billion gallons is simply unnecessary.”
Brian Jennings, the executive vice president of the American Coalition for Ethanol, called the methodology for setting blending targets for 2015 and 2016 legally questionable. “When Congress enacted the renewable fuel standard it voted to side with those of us who said ‘yes we can’ reduce greenhouse gas emissions from motor fuel, ‘yes we can’ allow consumer access to E15 and flex fuels, and ‘yes we can’ spark innovative ways to produce cleaner fuels,” said Jennings. “While we appreciate that the administration made incremental improvements compared to the proposed RFS rule, unfortunately, today they are choosing to side with those who say ‘no, we can’t. Regrettably, EPA’s final RFS rule protects the old way of doing business by obstructing consumer access to cleaner fuels, stifling competition in the marketplace, and undermining innovation.”
The National Corn Growers Association said while it was pleased to see the EPA revise its proposed volumes, “the fact remains that any reduction in the statutory amount will have a negative impact on our economy, our energy security, and the environment. It is unfortunate that Big Oil’s campaign of misinformation continues to carry weight in the court of public opinion, and in this decision,” NCGA president Chip Bowling said in a statement. “In light of the EPA’s decision, we are evaluating our options. We will fight to protect the rights of farmers and consumers and hold the EPA accountable.”
The Urban Air Initiative called it not disappointing but not surprising. The industry needs to establish markets for ethanol and recognize that the highest value of ethanol is that it is clean, high-octane fuel that can reduce toxic compounds in gasoline and harmful emissions. Instead, UAI president Dave VanderGriend said EPA’s action should be a message to the ethanol industry that it needs to secure its own future and recognize that ethanol’s highest value is as a clean fuel that can provide high octane to reduce the toxic compounds in gasoline while reducing a range of harmful emissions. "This is simply one program,” VanderGriend said. “We can move well beyond that and we will not let EPA and its faulty, inaccurate models define our value and limit our growth.”
The Iowa Renewable Fuels Association executive director Monte Shaw called the announcement a “gut punch” for consumers and farmers. “Given EPA’s stated rationale for these numbers, one of the most successful energy policies in our nation’s history has been put squarely in the stranglehold of the petroleum industry,” Shaw said. “As a result, consumers will see higher prices at the pump and Iowa farmers will likely continue to see commodity prices below the cost of production.”
Todd Sneller, Nebraska Ethanol Board administrator and Clean Fuels Development Coalition chairman, said the rule “essentially caps biofuels at 10 percent of the market,”
“The RFS was, and remains, a foundation to provide a solid base for biofuels to continue to develop,” Sneller said. “All this means is EPA will limit the amount of biofuels they intend to manage under this particular program. Ethanol's high octane and cleaner-burning properties make it an extremely valuable fuel and we expect increasing demand for those reasons.”
The National Biodiesel Board was pleased with the increase in the biodiesel volumes in the RVO. “It is a good rule,” said NBB CEO Joe Jobe in a statement. “It may not be all we had hoped for, but it will go a long way toward getting the U.S. biodiesel industry growing again and reducing our dangerous dependence on fossil fuels.” Under the new RFS rule, biomass-based diesel volumes would grow to 1.9 billion gallons in 2016 and 2 billion gallons in 2017. The biomass-based diesel category—a diesel subset of the overall advanced biofuel category—is made up mostly of biodiesel but also includes renewable diesel, another diesel alternative made from the same feedstocks using a different technology. “The new standards reflect modest but meaningful growth over recent years when the U.S. market has hovered around 1.8 billion gallons annually,” the NBB statement noted. Biodiesel is produced in nearly every state, and has made up the vast majority of advanced biofuel production under the RFS. Advanced biofuels must demonstrate a 50 percent greenhouse gas reduction.
Michael McAdams, speaking for the Advanced Biofuels Association said the group “applauds EPA’s support of next-generation biofuels. Today’s final rule is a step in the right direction that recognizes the importance of growing supplies of advanced and cellulosic biofuels to help provide more sustainable fuels for our future to combat climate issues.” McAdams reiterated the organization’s belief that legislative reform is needed. To strengthen the RFS and expedite the production of advanced biofuels. “. Outdated definitions, cellulosic waivers, as well as overall program uncertainty have created significant barriers to entry for the advanced and cellulosic industry.”
The Biotechnology Industry Organization called the final rule “an unnecessary, unlawful about face for a program that was successfully driving development of cleaner biofuel technologies and reduction of U.S. greenhouse gas emissions. The rule undermines the goals of the statute, and it will continue to undercut investment in advanced and cellulosic biofuels and increase greenhouse gas emissions in the transportation fuel sector.” Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, called it a severe blow to consumers and the biofuels industry and said the EPA’s actions violate the law. By delaying the EPA created uncertainty and shook investor confidence, resulting in an estimated $13.7 billion investment shortfall in the advanced biofuel sector and this final rule exacerbates the problem.
“As EPA has acknowledged, its delay allowed obligated parties to act as though the law did not exist,” Erickson said. “The delay increased U.S. carbon emissions by millions of tons over the past two years, compared to what could have been achieved with required use of biofuels. As the United States enters negotiations with the rest of the world to limit greenhouse gas emissions, EPA is putting in place an RFS rule that will sacrifice achievable reductions of emissions in the transportation sector.”
Brooke Coleman, excecutive editor of the Advanced Biofuels Business Council, said while the final rule would require oil companies to blend higher amounts of renewable fuel than originally proposed, which could have a positive effect, "it fails to remedy critical RFS waiver issues that are undercutting investment in the low carbon, advanced biofuels. First, the final rule continues to rely on a new reading of the statute to allow for 'distribution waivers,' which now permits EPA to waive the RFS from year-to-year if the oil industry refuses to make arrangements to distribute renewable fuel and comply with the law. Second, the final rule does not make clear how or on what timeline the agency expects to address waivers in the cellulosic biofuel pool, which currently allow the oil industry to avoid buying cellulosic biofuel in favor of cellulosic waiver credits (CWCs) at the end of each compliance year. Both issues should and can be resolved in 2016."
Read the original story: Renewable Fuel Associations Express Mixed Reactions To Final Rule
November 30, 2015
By Dave Shaffer
More biofuel will be required to be blended into the nation's fuel supply next year, but the ethanol industry isn't entirely happy about it.
The U.S. Environmental Protection Agency (EPA) on Monday issued final blending requirements under a 2007 renewable fuels law, ordering distributors to mix 8 billion gallons of ethanol, biodiesel and other advanced biofuels into the nation's fuel supply next year.
For the first time, the overall U.S. mandate for corn-based ethanol — about 14.5 billion gallons — will exceed 10 percent of the nation's expected gasoline use. That's intended to spur expansion of higher ethanol blends, such as 15 percent ethanol, or E15, which is now sold at just 36 Minnesota stations.
Almost all regular gasoline in the nation is a 10 percent ethanol blend, and that won't change.
For the ethanol industry, this overall market share has been called the "blend wall" — a barrier to selling more biofuel.
"We have seen a break in the blend wall," said Jeff Broin, chief executive of Poet Inc., the nation's second-largest ethanol producer with four plants in Minnesota.
Broin, who also is chairman of Growth Energy, an ethanol trade group, said the EPA's decision "should move renewable fuels forward." On a conference call, Broin said about 5,000 U.S. fuel stations are on track to install equipment to dispense E15, and he expects the higher-ethanol blend to sell at a discount to regular gasoline. In Minnesota, E15 typically sells for about 10 cents less than unleaded regular.
The 2016 corn-ethanol level is below the 15 billion gallons envisioned in the 2007 law — and is about 1 billion gallons less than the annual capacity of the nation's 212 ethanol plants.
Other ethanol industry leaders and supporters criticized the EPA's decision. The Minnesota Corn Growers called it a "step backward" and the Minnesota Biofuels Association, a state trade group, called it "capitulation to the oil industry" — echoing similar comments from the Renewable Fuels Association, an ethanol trade group based in Washington.
Sen. Al Franken, D-Minn., said the EPA biofuel targets are too low, even though they are higher than the agency proposed earlier this year. "[W]hile I'm glad they raised levels from what was proposed, these final numbers just don't cut it — especially for ethanol," Franken said in a statement.
Oil industry groups, which have fought expanding market share of ethanol, also were critical. "This decision is hard to view as anything other than an attempt by EPA to placate the biofuels lobby," said Chet Thompson, president of the American Fuel & Petrochemical Manufacturers.
Minnesota has 21 corn-ethanol plants, although two are shifting production to other corn-based biochemicals or fuel. Tim Rudnicki, executive director of the Minnesota Biofuels Association, said it's too early to say what effect the EPA decision will have on the state's ethanol industry, but "It certainly seems like a negative to me," he said.
Aside from corn-ethanol, the EPA also set higher blending levels for biodiesel, or diesel fuel made from plants, and advanced biofuels. Janet McCabe, acting assistant administrator for EPA's Office of Air and Radiation, said the rule increases the advanced biofuel blending requirement by 35 percent, but recognizes that cellulosic, ethanol technology hasn't developed as quickly as envisioned by the 2007 law. Cellulosic ethanol has a lower carbon footprint than the corn-based fuel.
Three cellulosic ethanol plants have opened in the past 14 months, including two in Iowa that process non-kernel parts of corn usually left on fields. A third plant in Kansas is owned by Spain-based Abengoa, which has begun insolvency proceedings, said Scott Chabina, a director at New York-based Carl Marks Advisory Group who tracks the industry.
Chabina said the EPA cellulosic ethanol targets could help spur investment in cellulosic ethanol, but that it won't be easy.
Read the original story: EPA Sets 2016 Blending Targets for Ethanol and Other Biofuels