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In the News

Ethanol Producer Magazine

March 3, 2016

By Erin Voegele

On Feb. 24, the House Committee on Agriculture held a hearing on the state of the rural economy. Biofuels and bioenergy were among the topics discussed during the nearly three-hour event.

When asked to characterize the state of the biofuels industry, Agriculture Secretary Tom Vilsack spoke about the need to maintain a strong rural economy. “I think the ability to maintain a strong and vibrant rural economy is dependent on our capacity to diversify and to create new opportunities to complement production agriculture and exports, which has been the traditional way of supporting rural America,” he said. “In my lifetime, agricultural production has increased by 170 percent even though the inputs have been relatively stable. That’s producing 170 percent more on 26 percent less land, with 22 million less farmers. The challenge that we have in rural areas is that as we were getting fewer and fewer farmers and were becoming more and more efficient with production agriculture, we didn’t overlay that with a complimentary economy that would allow folks to live work and raise their families in small communities. We’re now doing that,” he noted, adding that the development of the bioeconomy, biofuels industry and bioenergy industry all play a part in bringing manufacturing back to small towns.  

Vislack stressed that the biofuels industry is something people like and want. It’s helping create jobs, reducing the cost of gas over time, reducing emissions, reducing the trade deficit, and helping to reduce U.S. reliance on foreign oil. According to Vilsack, the industry is also helping to diversify the economy and is creating jobs in rural America.

Responding to questions about USDA support of biomass fuels, Vilsack noted the department is working through its network of research centers to look for ways in which appropriate biomass supply chains can be created for each region of the country. He also spoke about Farm Bill programs that support the production of advanced biofuels and provide loan guarantees for biorefinery projects.

In his testimony, Vilsack also highlighted the potential for biofuel use by the U.S. military. The Navy wants half their fuel to be biobased and domestically produced, he said, adding “I was privileged enough to be on a destroyer watching it be refueled with beef tallow fuel out on the Pacific theater just a couple of weeks ago.”

According to Vilsack, interest in biofuels is also strong in the private aviation sector. “There are roughly 40 airports that sell 90 percent of the jet fuel, and they are extremely interested in doing this because of the emissions and the benefit from the emissions to meet international standards,” he said, noting aviation use represents a 17 to 19 billion gallon market.

Vilsack also defended the USDA’s Biofuel Infrastructure Partnership during the event. The 21 states that participate in the program match $100 million in USDA funds with $120 million in commitments, he said. “We anticipate and expect over 5,000 additional distribution systems being put in those 21 states, so there is a lot of interest in this program,” Vilsack continued.

Vilsack said the biofuels industry directly and indirectly supports 450,000 jobs and has lowered the price of gas. “You can’t deny the fact that study after study shows that this industry has indeed over time reduced the cost of gas to consumers,” he added. Responding to misinformation regarding the food versus fuel debate, Vislack stressed there is no correlation between ethanol production and the cost of food.

Read the original story: Vislack Defends Biofuels, Bioenergy During House Hearing

Ethanol Producer Magazine

March 2, 2016

By Growth Energy

A new poll conducted by Selzer and Co. and released by Mediacom and the Des Moines Register Feb. 29 showed 71 percent of Iowans support ethanol and the renewable fuel standard (RFS). More importantly Republicans’ support for the federal policy has grown since the Iowa caucuses. In a Des Moines Register/Bloomberg poll this past December, Republicans surveyed supported the RFS by 61 percent. The most recent poll conducted by the Des Moines Register/Mediacom showed a five percent growth in support among Republicans to 66 percent, while support among Democrats stayed consistent.

“Iowans know ethanol and the RFS are allowing America’s farmers and innovators to produce clean, secure, renewable fuel right here at home that reduces toxic emissions and is better for the air we all breathe. The immense benefits and potential of biofuels, like ethanol, plays a critical role in America’s energy policy and in developing a 21st century fuel for 21st century vehicles,” noted Tom Buis, cochair of Growth Energy.

Buis added, “Contrary to the oil industry spin, this poll reinforces the fact that the issue gained ground with Iowans during the 2016 caucuses and now they support it in even greater numbers than before. The relevancy of the issue is why an overwhelming 83 percent of Iowans caucused for pro-RFS candidates in 2016, a higher percentage than in 2012.”

Furthermore, as the Des Moines Register highlighted overwhelming support for the RFS, regardless of political party affiliation, noting that 66 percent of Republicans, 76 percent of Democrats and 71 percent of independents are in favor of the RFS. Additionally, the Des Moines Register noted that, “Iowans who consider themselves tea party supporters also like it, with 64 percent in favor.”

Click HERE to view the Des Moines Register article explaining the results of the poll.

Read the original story: Growth Energy: Poll reaffirms Iowans support of ethanol and RFS

Renewable Fuels Association

February 29, 2016

By Christopher Findlay

Data released today by the Energy Information Administration (EIA) officially confirmed that new records were set in 2015 for U.S. ethanol production and blending. According to the EIA data, U.S. ethanol producers churned out 14.81 billion gallons of ethanol in 2015, while refiners and blenders integrated an unprecedented 13.69 billion gallons into the U.S. gasoline supply. The industry’s monthly average output in December 2015 also crested the 1 million-barrel-per-day mark for the first time in history.

Meanwhile, recent U.S. Environmental Protection Agency (EPA) data show that historic output levels of corn ethanol were primarily responsible for the generation of a record 14.83 billion renewable fuel RIN credits, which are used to oil companies to demonstrate compliance with the Renewable Fuel Standard (RFS).

While these record numbers are impressive, Renewable Fuels Association (RFA) President and CEO Bob Dinneen stated that the American ethanol industry was prepared to do even more. Unfortunately, however, mismanagement of the RFS program and the oil industry’s intransigence to adopt higher-level ethanol blends like E15 kept the ethanol industry from realizing its full potential. EPA set the 2015 blending obligation for renewable fuel at just 14.05 billion gallons, rather than the 15 billion gallon level established by Congress.

“The U.S. ethanol industry had an incredible year in 2015, but the failure of the White House and EPA to enforce the RFS as designed by Congress means our nation missed a huge opportunity to provide consumers with even larger volumes of domestically produced, low-carbon, high-octane biofuels,” Dinneen said. “There is no doubt that the ethanol industry could have produced even more renewable fuel if the Administration had stood firm on implementation of the statutory RFS volumes, rather than caving to the oil industry’s ‘blend wall’ narrative.”

RFA noted that the record December output rate of 1.002 million barrels per day would result in 15.36 billion gallons if maintained for an entire year, well above the 15 billion gallon blending requirement originally stipulated by Congress for 2015 and beyond. “By eclipsing the 1 million-barrel-per-day mark in December, ethanol producers have proven once again that they are more than capable of delivering the volumes necessary to meet the RFS blending requirements established by Congress,” Dinneen said. “The industry just needs to be set free to achieve the laudable goals set forth by Congress, which are as important today as they were nearly a decade ago when the RFS was expanded.”

Even though RFS requirements for 2015 weren’t finalized until November, Dinneen said the data from EIA and EPA show the volume requirement established by Congress could have been easily met by oil companies. “When the 14.83 billion new renewable fuel RIN credits generated in 2015 are combined with the existing surplus of 1.8 billion RINs that resulted from past over-compliance with the RFS, it becomes quite obvious that we had more than enough supply to meet the 2015 statutory renewable fuel volume of 15 billion gallons,” he said.

Today’s EIA data also revealed that total U.S. gasoline consumption hit in 140.4 billion gallons in 2015, the third-highest on record and well above the projections used by EPA to establish 2015 blending obligations.

RFA1

Read the original release: Official Numbers Released Today Confirm Record U.S. Ethanol Production and Use

Biomass Magazine

February 23, 2016

By Erin Voegele

The U.S. EPA has released renewable identification number (RIN) generation data for January, reporting that a net total of 1.44 billion RINs were generated during the month, including nearly 1.74 million cellulosic RINs.

According to the EPA, a total of 1.74 million D3 cellulosic biofuel RINs were generated in January, including 285,432 for ethanol, 1.29 million for renewable compressed natural gas and 161,044 for renewable liquefied natural gas. All 1.74 million D3 RINs were generated domestically. No D7 cellulosic diesel RINs were generated during the first month of the year.

More than 4.52 million D5 advanced biofuel RINs were generated in January, including 2.22 million for ethanol, 1.7 million for naptha, 201,225 for heating oil and 400,028 for nonester renewable diesel. All D5 RINs generated in January were generated domestically.

A net total of 1.24 billion D6 renewable fuel RINs were generated during the first month of the year, with the majority, 1.21 billion, generated for ethanol. According to the EPA, 17,461 D6 RINs were generated for biodiesel, along with 27.88 million generated for nonester renewable diesel. More than 1.21 billion D6 RINs were generated domestically, with 858,078 generated by importers and 27.88 million generated by foreign entities.

A net total of 191.57 million D4 biomass-based diesel RINs were generated in January, with 159.1 million generated for biodiesel and 32.69 million generated for nonester renewable diesel. Approximately 147.65 million D4 RINs were generated domestically, with 31.04 million generated by importers and 13.11 million generated by foreign entities.

Of the 1.44 billion RINS generated so far this year, 7.92 have been retired, with 60.13 million locked and available and 1.37 billion unlocked and available.

Read the original story: EPA: 1.74 million Cellulosic RINs Generated in January

Renewable Fuels Association

February 18, 2016

U.S. exports of distillers grains (DG) — a co-product of dry mill ethanol production — set a new record of 12.56 million metric tons (MMT) in 2015, according to a new summary of ethanol co-product trade statistics released today by the Renewable Fuels Association (RFA). Last year’s DG export number was 11 percent higher than 2014, and was more than double the amount exported in 2009. The report finds that U.S. DG exports were shipped to 45 countries on five continents in 2015.

“This report shows the global reach of American-made distillers grains,” said Bob Dinneen, RFA president and CEO. “In 2015, an estimated 34 percent of U.S. distillers grains production was exported, meaning one out of every three tons produced was shipped to foreign markets. These data make it crystal clear that the U.S. ethanol industry is both fueling and feeding the world. It is also worth noting that DG exports were worth almost $3 billion in 2015, providing a critical source of revenue to ethanol producers.”

RFA’s statistical summary, which draws on data from several U.S. government entities, shows that China, Mexico, Vietnam, South Korea, and Canada represented the top five markets in 2015 for DG exports. China received 50 percent of DG exports, while Mexico received 13 percent. Both Vietnam and South Korea received 5 percent of DG exports. With respect to imports, the report finds that last year Canada was once again the top supplier of DG imports to the United States, and shipped 401,554 MT to the United States. China and Brazil were the only other exporters of DG to the U.S. market in 2015. The RFA document also provides statistics on feed co-product exports from wet mills, including corn gluten feed and meal.

View the RFA summary of co-product exports here.

The co-product export summary is a complimentary publication to the RFA’s ethanol export summary published earlier in February. “Between ethanol and distillers grains, our industry exported the equivalent of 800 million bushels of corn last year,” Dinneen said. “If that amount of corn had been exported in raw form, it would have been worth $3.6 billion. But in the form of ethanol and distillers grains it was worth $4.8 billion. This is value-added agriculture at its best.”

Read the original release: U.S. Exports of Distillers Grains Set New Record in 2015, According to RFA Report

Global Renewable Fuels Alliance

February 17, 2016

Bliss Baker, the president of the Global Renewable Fuels Alliance, called upon national leaders to take advantage of the low price and abundant stockpiles of crude oil to eliminate fossil fuel subsidies. Baker pointed to the latest figures from the International Energy Agency that estimated global fossil fuel subsidies to be worth $490 billion, and outlined how global oil demand is forecast to drop by 25 percent in 2016 to 1.2mb/d.

Fossil fuel subsidies are theoretically intended to increase energy access during periods of high prices, but with the current state of global energy markets these subsidies are only succeeding in discouraging investment in energy efficiencies and renewables.

“The persistent oversupply of oil, and the resulting low prices, gives countries an opportunity not seen in recent memory to eliminate fossil fuel subsidies and encourage a transition to viable low-carbon energy sources like ethanol,” Baker said. “World leaders couldn’t ask for better circumstances to take action,” he added.

At the recently concluded Conference of the Parties to the UN Framework Convention on Climate Change (COP 21) in Paris, a landmark agreement on combating climate change was reached. The deal aims to ensure that the global temperature rise this century does not exceed 2°C above pre-industrial levels by shifting to a low carbon global economy and encouraging the development of clean technologies as the basis for future development.

Over the past year, almost 30 countries have reduced their fossil fuel subsidy programs. These changes have been made in recognition of the fact that the current low price of oil reduces the impact of eliminating consumer fossil fuel subsidies, and that their removal results in lower domestic national emissions of greenhouse gases.

“It is blatantly counter productive for governments to continue to subsidize the industry that contributes the majority of global greenhouse gas emissions, especially after 195 countries agreed that drastically cutting back GHG emissions was necessary to combat climate change” Baker said. “It’s time to take the brakes off of clean technology development and meaningfully begin the transition to a sustainable future,” he concluded.

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 story: GRFA Calls on National Governments to End Fossil Fuel Subsidies

Renewable Fuels Association

February 16, 2016

The U.S. ethanol industry added $44 billion to the nation’s gross domestic product and supported nearly 360,000 jobs in 2015, according to a new study conducted by ABF Economics. The study, which was released today by the Renewable Fuels Association (RFA) at the National Ethanol Conference (NEC), quantified the impact of domestic ethanol production in 2015 on the national economy.

The study showed that as a result of last year’s record domestic ethanol production, 85,967 direct jobs and 271,440 indirect and induced jobs were sustained. Additionally, the ethanol industry added $43.9 billion to the national GDP, $23.5 billion to household income, and paid $8.7 billion in taxes. These monies helped to stimulate and sustain economies at the national, state, and local levels. The study also revealed that the 14.7 billion gallons of ethanol produced in 2016 displaced 527 million barrels of foreign oil worth almost $26 billion.

Bob Dinneen, president and CEO of the RFA, lauded the study’s finding, noting: “The numbers speak for themselves and underscore the indelible positive impact the domestic ethanol industry continues to have on America’s economy. The nearly 360,000 jobs the industry sustained last year represent stable, well-paying positions in communities where, unfortunately, the employment situation is often bleak. The $8.7 billion the industry spent last year in local, state, and federal taxes contributes to improving and maintaining public services. And, each of the 527 million barrels of oil that we did not have to import last year keeps America on a path toward a more secure energy future.”

Economist John Urbanchuk, the study’s author and a managing partner at ABF Economics, concluded the analysis by stating: “The ethanol industry continues to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of imported crude oil and petroleum products. The importance of the ethanol industry to agriculture and rural economies is particularly notable. Continued growth and expansion of the ethanol industry through new technologies and feedstocks will enhance the industry’s position as the original creator of green jobs, and will enable America to make further strides toward energy independence.”

Below is a brief summary of the study’s findings. In 2015, the production and use of 14.7 billion gallons of ethanol:

  • Added $43.9 billion to the national gross domestic product
  • Supported 85,967 direct jobs and 271,440 indirect and induced jobs
  • Boosted household income by $23.5 billion
  • Increased federal, state and local taxes by $8.7 billion
  • Displaced 527 million barrels of imported oil, keeping $26 billion in the U.S. economy

The full study, prepared on behalf of the Renewable Fuels Association, can be found here

Read the original story: Ethanol Industry had Wide-Ranging Impact on National Economy in 2015, According to New Study

Renewable Fuels Association

February 16, 2016

Renewable Fuels Association (RFA) President and CEO Bob Dinneen announced today at the National Ethanol Conference (NEC) the launch of the “Flex My Choice” campaign, which is designed to voice consumer support for flex-fuel vehicles (FFVs). This effort is aimed directly at automakers, auto dealerships, and the Environmental Protection Agency (EPA). Dinneen said the time is ripe for such a campaign because, as the government phases out CAFE credits for producing FFVs, automakers have begun to limit the total number of FFV models that roll off their assembly lines.

“The auto companies claim there has not been meaningful consumer demand for these vehicles and the incremental cost, albeit trivial, cannot be justified in the absence of a more balanced CAFE regime,” said Dinneen. “The ethanol industry needs to demonstrate the continued enthusiasm for FFVs. We want to raise our voices so that E85 and other mid-level ethanol fuels remain viable options for consumers.”

As part of the campaign, RFA intends to distribute 75,000 postcard pamphlets to targeted parties across the country in the hopes of changing the conversation on the future of FFV production. The postcard pamphlets will contain five panels: the first panel is a brief introduction to the issues; panels 2 through 4 are individual postcards to General Motors, Ford Motor Company, and Fiat Chrysler Automobiles (the “Detroit Three”); and the fifth panel contains a pledge that consumers can drop off at their local auto dealership. Additionally, the campaign launched two petitions on www.Change.org directed at the automakers and the EPA respectively.

FlexMyChoice_Raise Your Voice or Lose Your Choice

“It goes without saying that when consumers’ choices within a given market are limited, everyone loses,” said Robert White, RFA’s vice president of industry relations. “The ‘Flex My Choice’ campaign intends to ensure that consumers have choices when it comes to buying and fueling their vehicles. Thanks to USDA, the ethanol industry, and agriculture, 2016 will mark the largest expansion of E85 stations in history; it is not the time to stop the momentum. This campaign will send a clear signal to the automakers, their auto dealerships, and the EPA that there is a real demand on the part of consumers for more vehicle choices, more choices at the pump and increased access to higher ethanol blends.”

For postcard pamphlets and additional information, go to www.FlexMyChoice.com. Consumers are encouraged to amplify their support for FFVs on social media using the hashtag #FlexMyChoice.

Read the original story: Raise Your Voice or Lose Your Choice: RFA Launches #FlexMyChoice FFV Awareness Campaign