In the News
Jun 2, 2021
A pair of recent studies examining purported cropland expansion in the Midwest are based on a flawed methodology that “suffers from accuracy and certainty issues,” according to a new review of the studies by researchers at Southern Illinois University Edwardsville. In reviewing studies by Zhang et al. and Lark et al., the SIUE authors found that the inherent defects in their methodology “severely hinder its use for estimating land use change over time.”
In their paper, Joshua Pritsolas and Randall Pearson of SIUE’s GeoSpatial Mapping, Applications, and Research Center pointed out that both studies relied on the U.S. Department of Agriculture’s Cropland Data Layer (CDL) tool to estimate the conversion of grassland to cropland, a use for which the tool was not intended and is poorly suited. As the USDA itself has noted, “Unfortunately, the pasture and grass-related land cover categories have traditionally had very low classification accuracy in the CDL,” meaning grassland is often confused with cropland in the CDL dataset.
The reliance of Zhang et al. and Lark et al. on USDA’s CDL tool renders the results of both studies highly questionable. “Given these issues, policy makers should exercise caution in referencing studies that have performed or integrated land cover/use change analysis that relies on the CDL,” according to Pritsolas and Pearson.
According to the SIUE analysis, it is likely that Zhang et al. and Lark et al. grossly overstated the amount of cropland expansion between 2008 and 2016 because the CDL tool frequently misclassified cropland as grassland in the early part of this time period. “The cropland expansion claimed by Lark et al. (2020) and adopted by Zhang et al. (2021) has a high potential of being false change due to poor classification certainty in the earlier CDL,” the authors found.
Meanwhile, researchers from Purdue University, the University of Illinois—Chicago, and the Department of Energy’s Argonne National Laboratory earlier this month responded to unfounded criticism from a British consulting group about the land use change modeling framework developed by Purdue and the DOE. In a point-by-point rebuttal, the Purdue, UIC, and DOE authors corrected the record regarding their methodology for estimating land use change emissions. “The existing literature has reached the conclusion that early research in this area significantly overstated the land use implications of biofuels,” they wrote. “As the conversation continues, it is important for the community to remain focused on the big picture regarding agriculture’s role as a very effective GHG mitigation tool that can shape the new policies to govern production and consumption of biofuels.”
Renewable Fuels Association President and CEO Geoff Cooper commented on the importance of the new reports from both SIUE and Purdue, UIC, and DOE.
“As part of the process to propose Renewable Fuel Standard volumes for 2023 and beyond, the Environmental Protection Agency is currently analyzing the environmental impacts of the RFS to date,” Cooper said. “At the same time, the National Academy of Sciences is examining the state of the science regarding lifecycle analysis of low-carbon transportation fuels like ethanol. Therefore, it is crucial that the scientific and regulatory communities have access to current, reliable data and robust methodologies for assessing the climate impacts of a broad array of transportation fuel options. Important decisions regarding the future of the RFS should be based on sound science—not political science. We applaud the experts at SIUE, Purdue, UIC, and DOE for defending their good work and scrutinizing questionable studies that misrepresent the lifecycle impacts of biofuels.”
RFA Chief Economist Scott Richman testified at a NAS hearing Monday and stressed the fact that historical predictions about land use/cover change have turned out to be greatly exaggerated. “There has not been a significant increase in U.S. cropland since the Renewable Fuel Standard was expanded in 2007,” Richman said. “Given the clarity of statistics on this fact, opponents have turned to contorting satellite-based imagery to try to find land cover and land use change.”
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May 27, 2021
The USDA recently released its Grain Crushings and Co-Products Production report for May, reporting that corn use for fuel ethanol in March was up when compared to both the previous month and March 2020.
Total corn consumed for alcohol and other uses was 473 million bushels in March, up 25 percent from February and up 1 percent from March 2020. Usage included 91.1 percent for alcohol and 8.9 percent for other uses.
Corn consumed for fuel alcohol reached 420 million bushels, up 26 percent when compared to the previous month, and up 2 percent when compared to the same month of last year. Corn consumed for dry milling fuel production and wet milling fuel production was at 91.5 percent and 8.5 percent, respectively.
The report shows no sorghum was consumed for fuel ethanol production in March. Data for the prior month was withheld to avoid disclosing data for individual operations. In March 2020, 4.64 million hundredweight (cwt) (259,840 tons) of sorghum went to fuel ethanol production.
At dry mills, condensed distillers solubles production fell to 90,530 tons, down from 92,525 tons in February and 99,381 tons in March 2020. Corn oil production increased to 156,903 tons, up from 117,903 tons the previous month and 149,066 tons during the same month of last year. Distillers dried grains production increased to 368,075 tons, up from 262,261 tons in February and 317,411 tons in March 2020. Distillers dried grains with solubles production increased to 1.8 million tons, up from 1.41 million tons in February and 1.67 million tons in March 2020. Distillers wet grains production was at 1.11 million tons, up from 885,932 tons the previous month, but down from 1.27 million tons in March of last year. Modified distillers wet grains production was at 391,913 tons, up from 377,688 tons in February, but down from 478,416 tons in March 2020.
At wet mills, corn germ meal production was at 50,088 tons, up from 44,416 tons in February, but down from 69,960 tons in March 2020. Corn gluten feed production was at 266,308 tons, up from 217,605 tons the previous month, but down from 291,861 tons during the same month of last year. Corn gluten meal production increased to 113,365 tons, up from 97,680 tons in February and 92,269 tons in March 2020. Wet corn gluten feed production was at 206,831 tons, up from 169,005 tons in February, but down from 220,423 tons in March 2020.
At dry and wet mills, carbon dioxide captured increased to 237,819 tons, up from both 182,552 tons in February and 218,593 tons in March 2020.
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May 25, 2021
WASHINGTON, D.C.] – U.S. Senator Tammy Duckworth (D-IL) joined U.S. Senator Deb Fischer (R-NE) in introducing the bipartisanRFS Integrity Act of 2021. This legislation would provide more certainty for rural America by bringing transparency and predictability to the United States Environmental Protection Agency’s (EPA) small refinery exemption process. The bill would require small refineries to petition for Renewable Fuel Standard (RFS) hardship exemptions by June 1st of each year. This change would ensure that the EPA properly accounts for exempted gallons in the annual Renewable Volume Obligations (RVO) it sets each November.
“Farmers across Illinois and throughout the Midwest are hurting and ethanol plants are idling as a result of years of misuse of the small refinery exemption program that undermined the intent of the bipartisan Renewable Fuel Standard,”said Senator Duckworth.“I am proud to work with Senator Fischer to introduce this bipartisan legislation to bring much-needed transparency to the waiver process and prevent it from being misused to benefit billion dollar oil companies at the expense of hardworking Americans again.”
“The EPA’s very opaque small refinery exemption process is unfair to hardworking farmers and ethanol producers across rural America. By ensuring the EPA accounts for exempted gallons in the annual RVO process, my bipartisan bill will uphold the integrity of the RFS and bring much needed transparency to this exemption process,”said Senator Fischer.
This legislation fixes the unnecessarily complex “rolling deadline” by setting a deadline for refineries to apply for an SRE by June 1 in the year before the RVO is in effect, giving the EPA sufficient time to ensure exemptions are accounted for in the annual RVO process. It further requires the EPA to publish the name of the refinery and how many gallons are exempted on their dashboard at the same time the refiner is notified that they received an exemption.
The bill is supported by the American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, American Farm Bureau Federation and the Renewable Fuels Association.
Senator Duckworth has been a longtime supporter of the Renewable Fuel Standard (RFS) policy. In February, after weeks of leading an effort calling on the Biden administration to take such action, she applauded the Administration’s decision to support farmers and rural communities by restoring RFS policy, which supports a $5 billion biofuel industry in Illinois that employs more than 4,000 people. Last Congress, Duckworth introduced the RFS Integrity Act of 2019 to make applications for small refinery exemptions (SRE) public and create more certainty for rural America.
Read the original press release here.
Archer Daniels Midland Company
May 19, 2021
ADM (NYSE: ADM) and the University of Illinois announced today the successful completion of the Illinois Basin - Decatur Project (IBDP), a carbon capture and storage (CCS) project designed to evaluate and test the technology at commercial scale. This is one of two CCS projects located adjacent to ADM’s corn processing plant in Decatur, Illinois.
The first-of-its-kind project was primarily funded through the Midwest Geological Sequestration Consortium (MGSC) by the U.S. Department of Energy – National Energy Technology Laboratory with the goal to confirm the ability of the Mt. Simon Sandstone to accept and store one million metric tons of carbon dioxide over a period of three years, the equivalent of annual emissions from about 1.2 million passenger cars according to EPA calculations. Working together through the MGSC, the Illinois State Geological Survey at the University of Illinois designed, implemented, and monitored the project and ADM was the host and operator.
“ADM is committed to leveraging innovation and technology to advance sustainability across every aspect of our business. Deploying carbon capture and storage technology in our processing operations is one of the many ways we are reducing our environmental footprint,” said Alison Taylor, Chief Sustainability Officer, ADM.
As part of its Strive 35 sustainability goals, ADM aims to reduce absolute greenhouse gas emissions by 25% against a 2019 baseline.
“Today’s announcement marks an important milestone, not only for the Illinois Basin - Decatur Project but also for the advancement of CCS to combat the climate crisis,” said Dr. Jennifer Wilcox, Acting Assistant Secretary for Fossil Energy and Carbon Management at the U.S. Department of Energy. “We congratulate ADM and the University of Illinois, and we’re proud to be a part of this achievement.”
The project utilized 20,000 feet of wells to successfully inject carbon dioxide from ADM’s processing plant more than 6,500 feet underground. More than 2,000 visitors from 30 countries have come to the site throughout the project to learn more about the process and technology.
“The Illinois Basin - Decatur project has successfully achieved its desired outcome to demonstrate that carbon capture and storage can be undertaken safely and effectively. This milestone represents a launching point for the future of this technology, including commercial scale deployments around the world,” said Sallie Greenberg, Principal Scientist Energy & Minerals, Illinois State Geological Survey.
“Addressing climate change in a meaningful way requires carbon emission reductions across the board,” U.S. Senator Dick Durbin (D-IL) said. “The Illinois Basin - Decatur Project shows how carbon capture and storage can play an important role in reducing these emissions. I congratulate ADM and the University of Illinois on reaching this milestone, and will continue advocating for federal investments in a clean energy economy.”
“Agribusiness leaders and producers have a vital role to play in reducing our carbon footprint, and game-changing innovation to do just that is occurring right here in central Illinois,” said Congressman Rodney Davis (IL-13). “ADM and the U of I’s partnership to capture and store carbon underground will serve as a global model on how to reduce emissions. I’d like to thank ADM and the U of I for proactively taking on this project.”
ADM also began injection operations at a second CCS project, the Illinois Industrial Sources Carbon Capture and Storage Project, in Decatur in April 2017. The project is currently permitted to operate through 2022 and has the potential to store up to 5.5 million metric tons of carbon dioxide.
Collectively, these two projects have successfully stored more than 3.4 million metric tons to date.
About Illinois State Geological Survey
The Illinois State Geological Survey (ISGS) is part of the Prairie Research Institute at the University of Illinois at Urbana-Champaign. The ISGS is a premier state Geological Survey serving the needs of Illinois with earth science information relevant to the State's environmental quality, economic vitality, and public safety.
About ADM
At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over.
Learn more at www.adm.com.
Read the original press release here.
May 21, 2021
The USDA on May 20 published its 90-Day Progress Report on Climate-Smart Agriculture and Forestry. The report reflects initial conversions with stakeholders on how the agency should develop its climate smart strategy and indicates bioenergy will play a significant role in meeting federal climate goals.
“Over the past months, USDA has heard the views of Tribes and stakeholders across agriculture and forestry on how USDA should develop its climate smart agriculture and forestry strategy,” wrote Agriculture Secretary Tom Vilsack in the report. “This report reflects some of those initial conversations, and in the coming months we look forward to continuing to work with you to develop and implement our approach. It will be multi-pronged and centered on voluntary incentives that benefit producers and landowners. We will look across climate science and research, forest health, outreach and education, existing programs, and new and emerging markets to advance climate-smart agriculture and forestry. All of this must be done in partnership with landowners, producers, state and local governments, Tribes, and other stakeholders across agriculture and forestry.”
The report is related to President Biden’s Jan. 27 executive order on tackling the climate crisis. Section 214 of that executive order focuses on empowering workers by advancing conservation, agriculture and reforestation. According to the executive order, “America’s farmers, ranchers, and forest landowners have an important role to play in combating the climate crisis and reducing greenhouse gas emissions, by sequestering carbon in soils, grasses, trees, and other vegetation and sourcing sustainable bioproducts and fuels.”
The order, in part, directed the USDA to collect within 60 days input from Tribes, farmers, ranchers, forest owners, conservation groups, firefighters, and other stakeholders on how to best use USDA programs, funding and financing capacities, and other authorities, and how to encourage the voluntary adaptation of climate-smart agricultural and forestry practices that decrease wildfire risk fueled by climate change and result in additional, measurable, and verifiable carbon reductions and sequestration that source sustainable bioproducts and fuels.
The USDA on March 15 announced the opening of a 45-day comment period to collect the input required by the executive order. Several topics addressed within the agency’s request for comments focused specifically on biofuels, bioproducts and renewable energy.
The USDA said it received more than 2,700 written comments during the comment period. The agency also hosted a series of 10 stakeholder listening sessions that were attended by more than 260 participants.
The report released May 20 takes note of the broad array of perspectives raised during these initial outreach activities, according to the USDA. Several common themes also emerged, with many respondents urging the agency to account for co-benefits of its CSAF strategy but cautioning against taking a one-size-fits-all approach.
The report lists seven recommended elements of a CSAF strategy, including prepare USDA to quantify, track, and report the benefits of CSAF activities; develop a CSAF strategy that works for all farmers, ranchers, forest land-owners, and communities; leverage existing USDA programs to support CSAF strategies; strengthen education, training, and technical assistance for CSAF practices; support new and better markets for agriculture and forestry products generated through CSAF practices; develop a forest and wildfire resilience strategy; and improve research.
Biofuels and bioenergy are mentioned several times under those seven elements. The report notes that a wide range of market-based approaches exist for incentivizing climate-friendly agriculture commodities, including voluntary offset and credit markets. “They can also include markets for low-carbon biofuels, renewable energy, and biobased and wood products,” the USDA said in the report. “These markets can promote voluntary adoption of conservation technologies and practices and leverage private-sector demand for GHG benefits associated with CSAF practices. These types of market opportunities can offer cost-effective ways to incentivize CSAF practice adoption and provide new income streams. Through the CSAF strategy, USDA should support the identification and verification of the GHG benefits associated with CSAF practices and facilitate the participation of farmers, ranchers, and landowners in new markets for CSAF goods and services.”
The report also stresses that USDA can support the role of agriculture in decarbonizing the transportation sector. “The growth of the U.S. biofuels sector, driven in part by the Renewable Fuels Standard, has reduced GHGs and strengthened the rural economy,” the agency wrote. “Ethanol produced from corn reduces GHG emissions relative to gasoline. Market opportunities such as California’s Low Carbon Fuels Standard and the 45Q Federal Tax Credit for carbon capture and sequestration can further drive down the GHG footprint of the biofuels sector. USDA should identify opportunities for agriculture and forestry to play a role in the production of low-carbon biofuel feedstocks, and for innovative technologies such as bioenergy with carbon capture (BECCS) to reduce emissions associated with biofuel production while spurring rural economic development.”
In addition, the report shows USDA should help position Tribes, farmers, ranchers, rural landowners, and environmental justice communities to be leaders in renewable energy development. This includes investments in renewable energy technologies, including those to produce liquid fuels, renewable natural gas (RNG) from livestock, and sustainable biomass for renewable energy generation. “Investments in these technologies can provide new market opportunities for Tribes and rural America and create new uses for agriculture and forestry waste products, while reducing GHG emissions,” the agency said.
Another section of the report stresses the opportunities associated with USDA support for the deployment and development of methane digesters, biogas, and biobased products. “The adoption of on-farm biogas capture technologies and the production of biobased products can provide producers with new income streams while also reducing GHG emissions and improving water quality,” according to USDA. “Opportunities to generate income from these technologies include the generation of renewable electricity and the production of biobased products from manure, renewable natural gas (RNG) and liquefied natural gas (LNG). USDA should support producers as they enter these new markets and consider innovative finance mechanisms to provide upfront capital for biogas technologies and encourage the connection of multiple small operations to provide economical renewable energy production.”
A full copy of the report can be downloaded from the USDA website.
Read the original story here.
May 19, 2021
U.S. fuel ethanol production averaged 1.032 million barrels per day the week ending May 14, marking the first time in more than a year that production has exceeded 1 million barrels per day, according to data released by the U.S. Energy Information Administration on May 19.
Ethanol production for the week ending May 14 was up more than 5 percent, or 53,000 barrels per day, when compared to the 979,000 barrels per day of production reported for the previous week. The week marks the first time since the week ending March 20, 2020, that production has averaged more than 1 million barrels per day. When compared to the same week of last year, production for the week ending May 14 was up 369,000 barrels per day.
Weekly ending stock of fuel ethanol were up slightly for the week ending May 14, reaching 19.433 million barrels, up 40,000 barrels when compared to the 19.393 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending May 14 were down 4.193 million barrels.
Read the original story here.
May 19, 2021
The U.S. Court of Appeals for the Tenth Circuit on May 19 issued an order vacating three small refinery exemptions (SREs) approved by the Trump administration on Jan. 19, less than 24 hours before President Biden’s inauguration.
The Renewable Fuels Association on Jan. 20 filed a petition for review and an emergency motion to stay the effectiveness of the three SREs with the Court of Appeals for the D.C. Circuit. The court on Jan. 21 granted the administrative say requested by RFA. Sinclair later confirmed that its Wyoming refineries were the recipients of the three SREs, and the proceedings were moved to the Tenth Circuit Court of Appeals, according to RFA. Sinclair filed a new petition for review on March 15.
The U.S. EPA filed a motion on April 30 asking the court to vacate the SREs. In the motion, the EPA said the agency “did not analyze determinative legal questions regarding whether Sinclair’s refineries qualified to receive extensions of the small refinery exemption under controlling case law established by” the Tenth Circuit Court of Appeals in its January 2020 ruling on SREs, “and there is substantial uncertainty whether, if EPA performed such an analysis, it could grant the petitions submitted by Sinclair.”
The EPA also said in its motion that Sinclair has already retired the renewable identification numbers (RINs) necessary to demonstrate compliance with its 2018 and 2019 Renewable Fuel Standard obligations. The EPA said that remanding its decision with vacatur “would preserve the status quo ante by ensuring that the RINs that Sinclair already retired to demonstrate its small refineries’ compliance with their 2018 and 2019 compliance obligations remain retired while EPA reconsiders Sinclair’s exemption petitions.”
Sinclair on May 18 filed a response with the court stating that the company does not oppose the EPA’s April 30 request for vacatur and remand. The court on May 19 granted the unopposed motion for vacatur and voluntary remand. “We vacate the agency’s decision and remand for further administrative proceedings consistent with this court’s decision in [Renewable Fuels Association v. EPA].” That decision, handed down in January 2020, determined that the EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed.
The RFA applauded the court’s decision. “We’re pleased that the court has vacated these improperly granted waivers and is sending them back to EPA for reconsideration,” said Geoff Cooper, president and CEO of the RFA. “If these exemptions had been allowed to stand, they would have erased RFS blending requirements for 260 million gallons of low-carbon renewable fuels, destabilizing rural communities and taking a step backward in the fight against climate change. EPA did the right thing in April by requesting that these spurious exemptions be vacated, and we applaud the agency for honoring President Biden’s commitment to putting an end to the surge of illegitimate refinery waivers.”
Growth Energy also welcomed news of the court’s ruling. “We are glad to see the court move swiftly and agree with EPA's motion to vacate and remand Sinclair's improperly granted SREs,” said Emily Skor, CEO of Growth Energy. "Going forward, SCOTUS should affirm the 10th Circuit’s opinion and affirm EPA’s authority to deny this and all other improper SREs outright, once and for all.”
The American Coalition for Ethanol called the court’s action encouraging. “In anticipation that the prior administration would hastily grant these three SRE requests, ACE sought assurance from the EPA Inspector General that any last-minute SREs complied with federal law,” said Brian Jennings, CEO of ACE. “We're encouraged the court has vacated these wrongfully granted waivers and is sending them back to EPA for further review. Given that the Biden EPA appears to be focused on getting the RFS back on track, we expect these last-minute waivers to ultimately be denied.”
Read the original story here.
ClearFlame Engine Technologies
May 17, 2021
ClearFlame Engine Technologies, a growing startup dedicated to the development of clean engine technology today announced a partnership with Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, to conduct pilot demonstrations of its proven solution for diesel engines using low-cost ethanol in Class VIII trucks.
ClearFlame will provide Alto with a Class VIII truck retrofitted with a 500hp heavy-duty demonstration engine, which can match diesel torque and efficiency by achieving true diesel-style combustion of any decarbonized fuel. In turn, Alto will provide fuel and fleet support, which will enable real-world testing on the road. ClearFlame anticipates its engine running on ethanol can reduce GHG vehicle emissions by more than 45 percent and offer an estimated 15-30 percent TCO savings when compared with a diesel-fueled solution.
“This is an important milestone for us as we can now offer fleets a widely available fuel solution so they can begin to test our technology easily in real-world environments,” said Dr. BJ Johnson, ClearFlame CEO and co-founder. “Alto provides the important logistical infrastructure critical to ensuring successful demonstration – everything from tank installation to dispensing of the fuel, with a well-established existing liquid fueling infrastructure already in place. We look forward to working with them to drive forward our mission of quickly decarbonizing heavy-duty industry with a practical, cost-effective solution that is available today.”
“Alto Ingredients is partnering with ClearFlame on its engine project to support our customers’ CO2 reduction efforts by displacing 100 percent of the diesel in the tank,” said Mike Kandris, CEO, Alto Ingredients. “We are proud to partner with ClearFlame in such a transformative project within the fuel industry, promoting the increased use of ethanol and contributing to material improvements in the decarbonization of our environment.”
ClearFlame’s unique engine technology enables low-carbon and carbon-negative fuels to be easily integrated into existing diesel engine platforms, offering a more sustainable and cost-effective solution than diesel fuel while utilizing existing liquid fuel infrastructure. It provides the same performance, efficiency, and rugged practicality associated with diesel engines, while eliminating the need for complex aftertreatment solutions. By replacing 100 percent of the petroleum fuel used with decarbonized fuels such as ethanol, ClearFlame’s engine technology significantly reduces greenhouse gas emissions, particulate matter and smog, helping to meet stringent emissions regulations while reducing overall engine cost. ClearFlame-enabled trucks will begin driving in late 2021, for fleet
testing to begin in the first quarter of 2022.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information please visit www.altoingredients.com.
About ClearFlame Engine Technologies
At ClearFlame Engine Technologies, we’re breaking the bond between the diesel engine and diesel fuel, accelerating the path to true emissions reduction for the heavy-duty and off-highway markets. Our technology meets global emissions regulations using climate-friendly fuels available throughout the world. Our technology lowers costs by negating the need for complex aftertreatment technologies without compromising the practicality or performance of traditional diesel engines.
For more information, visit www.clearflameengines.com, and follow us on LinkedIn and Twitter (@ClearFlameEng).
Read the original press release here.
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May 14, 2021
Energy Secretary Jennifer Granholm briefly discussed how biofuels will into the U.S. Department of Energy’s priorities under the Biden administration during a House Committee on Appropriations hearing on May 6.
The hearing was held by the Subcommittee on Energy Water Development and Related Agencies to consider the DOE’s fiscal year 2022 budget request.
During the event, Rep. Cheri Bustos, D-Ill., stressed the importance of renewable fuels, such as ethanol and biodiesel, to rural communities. “These fuels have the potential to reduce our emissions right now,” she added, and asked Granholm how she thinks biofuels will fit in the DOE’s and Biden administration’s blueprint for a net-zero future.
Granholm said the agency has a whole biofuels and energy team working on that issue, and stressed the role she thinks biofuels can play in reducing energy-intensive forms of transportation, including long-haul trucking, aviation and marine transport. “Electric vehicles obviously have emerged as this great technology—which they are for light duty vehicles like cars and SUVs,” she said. “But pickups, heavy duty transportation modes that really need more of an energy density of liquid fuels, that is where biofuels are going to play a critical role and that’s especially true in aviation and marine fuels. So, we think they have a huge role to play, especially in long-haul trucking, and other areas too…I feel very bullish about this bottom line.”
Granholm said the DOE sees biofuels playing a big role in the U.S. transportation sector. “We think those refineries can be producing, and should be producing, aviation fuels right now,” she said, stressing significant demand currently exists for sustainable aviation fuels (SAF). “This is very exciting and its not much to retrofit a biofuel refinery to be able to produce aviation fuel,” she added. “So, we have our team working on this, so I will keep you posted, because I think it’s very exciting.”
A full replay of the hearing is available on the House Committee on Appropriations website.
Read the original story here.
May 11, 2021
Representatives of the ethanol industry are urging U.S. EPA Administrator Michael Regan to take immediate steps to facilitate the increased use of E15 to help alleviate fuel shortages in states impacted by the recent ransomware attack on the Colonial Pipeline.
Regan on May 11 issued an emergency fuel waiver to help relieve fuel shortages in states where the supply of reformulated gasoline has been impacted by the pipeline shutdown. The action waives the federal Reid vapor pressure (RVP) requirements for fuel sold in reformulated gasoline areas of the District of Columbia, Maryland, Pennsylvania, and Virginia to facilitate the supply of gasoline. The waiver is effective through May 18.
The Renewable Fuels Association and Growth Energy are encouraging the EPA to also take immediate steps to facilitate the increased use of E15 to help fill the void in gasoline supplies.
In a letter to Regan, Geoff Cooper, president and CEO of the RFA, urges the agency to take two actions. “First, EPA could suspend the requirements outlined in sections 1090.1400 – 1090.1450 of Subpart O (“Survey Provisions”) and section 1090.1510 of Subpart P (“Retailer and Wholesale Purchaser-Consumer Provisions”) to Part 1090 of the Code of Federal Regulations,” Cooper wrote. “Second, EPA could immediately adopt the changes it recently proposed to Underground Storage Tank (UST) regulations in 86 Federal Register 5094 (January 19, 2021). We encourage EPA to also evaluate whether other provisions of Part 1090 should be temporarily suspended to allow for greater use of ethanol during this emergency. These actions would allow many retailers who do not sell E15 today to immediately begin offering the fuel without being unduly delayed.”
Cooper also stressed that at least 180,000 barrels per day of ethanol production capacity is currently idle and could be “quickly activated or reoriented to help alleviate impending fuel shortages on the East Coast.”
“For many reasons, utilizing domestically produced low-carbon fuel to help offset the supply shortage is preferable to importing more petroleum products, as is currently being planned,” he continued.
Cooper also noted that the Colonial Pipeline outage underscores a need for more diversity and flexibility in the U.S. transportation fuels sector. “Overreliance on petroleum has left our transportation fuels infrastructure vulnerable to disruption and volatility, with American consumers bearing the brunt of price spikes and fuel shortages,” he wrote. “By comparison, the fuel ethanol industry’s infrastructure is unconcentrated, dispersed, and uses a variety of efficient delivery channels.”
Emily Skor, CEO of Growth Energy, also sent a letter to Regan and Energy Secretary Jennifer Granholm calling for the agencies to immediately reduce restrictions on higher ethanol-blended fuels to provide relief from supply disruptions and rising gas prices. “By immediately removing remaining regulatory hurdles and providing greater access to E15, you can help keep fuel prices in check for American consumers and ease concerns about fuel supply,” she wrote.
“We ask that you make E15 broadly available at all fuel terminals in areas impacted by related fuel shortages,” Skor continued. “We also request EPA finalize the proposed rule that would broaden the availability of existing infrastructure for use with E15 and related labeling concerns. We also urge you to remove unnecessary misfuelling requirements, including restrictions on the use of E15 in shared fueling hoses with 10 percent blended fuel and related fuel sampling requirements. Finally, we strongly encourage the government to strengthen its use of higher ethanol blends such as E85 in its current flex-fuel vehicle fleet.”
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May 5, 2021
The U.S. Environmental Protection Agency is handing over to the Government Accountability Office information on oil refiners that petitioned for exemptions to biofuel blending mandates, in an effort to help the government watchdog investigate the exemption program.
The move shows the Biden administration's willingness to help scrutinize the so-called small refinery exemption program, which had expanded dramatically during former President Donald Trump's term.
The disclosed confidential information will include all documents, information and data related to small refinery exemption petitions received by the EPA from the program since its inception, according to a notice on Wednesday in the Federal Register.
Under U.S. law, oil refiners must blend billions of gallons of biofuels into the nation's fuel pool, or buy credits from those that do. Refiners can apply for exemptions if they can prove the requirements would do them financial harm.
The exemptions have sparked controversy between oil and corn groups. Corn and biofuel groups say that the exemptions hurt demand for their fuel, while oil refiners reject that claim and say the exemptions are necessary to keep small refiners in business.
GAO announced in January 2020 that it would review the EPA's approval of small refinery exemptions under the Renewable Fuel Standard, including viability scores given to the applications by the Energy Department, which helps advise EPA on the program.
GAO launched the investigation after a request to do so from Democratic and Republican representatives from corn-growing states such as Illinois, Iowa and other states.
The Renewable Fuels Association, a biofuel trade group, cheered the news.
"We applaud the new leadership at EPA for providing the requested information to GAO, and we thank Administrator (Michael) Regan for taking another important step toward restoring the integrity of the RFS program," said RFA President Geoff Cooper.
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May 4, 2021
American exports of ethanol accelerated in March to 133.0 million gallons (mg), the second-largest volume in a year and up 31% from February’s dip. Exports to China spiked from 4.7 mg to 48.3 mg for the country’s second-largest monthly imports of American ethanol on record (and narrowly missing the April 2016 high). Similarly, shipments to Canada accelerated by 85% to a four-month high of 34.2 mg, and India’s imports were up 13% over February to 16.8 mg. These three countries received three-fourths of all ethanol shipped in March. Other substantial markets include South Korea (7.1 mg, -67%), Brazil (5.3 mg, -32%), the Philippines (4.6 mg, -5%), and Peru (4.5 mg, +3%). Total U.S. ethanol exports for the first three months of the year totaled 399.3 mg, or 18% less than last year at this time.
For the third consecutive month, the U.S. did not log any meaningful volumes of foreign ethanol imports (6,160 gallons shipped from Canada in March). This marks the smallest volume of total first-quarter imports in four years.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—rebounded by 13% in March to 882,553 metric tons (mt). Two-thirds of U.S. exports were destined for five markets, with the remaining volumes distributed among 31 countries. Shipments to Mexico rebuilt following a sizeable slump in February with 174,928 mt crossing the border. This is equivalent to 20% of total U.S. exports in March and a 42% increase over the prior month. Shipments to Vietnam nearly doubled to a seven-month high of 130,985 mt. Exports to South Korea of 100,771 mt were 24% higher and Turkey’s imports of 84,787 mt saw an 88% improvement. Indonesia imported 80,822 mt, a slight (0.5%) decline from February. Other larger trade partners included Thailand (54,151 mt), Canada (36,827 mt), Japan (28,417 mt), Colombia (25,640 mt), and Morocco (23,331 mt). Total DDGS exports for Q1 2021 totaled 2.58 million mt, which tracks 6% behind last year.
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May 3, 2021
The U.S. EPA on April 30 filed a motion in the U.S. Court of Appeals for the Tenth Circuit asking the court to vacate and remand three small refinery exemptions (SREs) approved by the Trump administration on Jan. 19, the day before President Biden’s inauguration.
The Renewable Fuels Association on Jan. 20 filed a petition for review and an emergency motion to stay the effectiveness of the three SREs with the Court of Appeals for the D.C. Circuit. The court on Jan. 21 granted the administrative say requested by RFA. Sinclair later confirmed that its Wyoming refineries were the recipients of the three SREs, and the proceedings were moved to the Tenth Circuit Court of Appeals, according to RFA. Sinclair filed a new petition for review on March 15.
In its April 30 motion, the EPA said the agency “did not analyze determinative legal questions regarding whether Sinclair’s refineries qualified to receive extensions of the small refinery exemption under controlling case law established by” the Tenth Circuit Court of Appeals in its January 2020 ruling on SREs, “and there is substantial uncertainty whether, if EPA performed such an analysis, it could grant the petitions submitted by Sinclair.”
In its motion, the EPA notes that Sinclair has already retired the renewable identification numbers (RINs) necessary to demonstrate compliance with its 2018 and 2019 Renewable Fuel Standard obligations. The EPA said that remanding its decision with vacatur “would preserve the status quo ante by ensuring that the RINs that Sinclair already retired to demonstrate its small refineries’ compliance with their 2018 and 2019 compliance obligations remain retired while EPA reconsiders Sinclair’s exemption petitions.”
The RFA has spoken out in support of EPA’s court request. “We strongly support EPA’s request for vacatur and remand of these three midnight-hour exemptions that were handed out to Sinclair in the waning moments of the Trump administration,” said Geoff Cooper, president and CEO of the RFA. “If allowed to stand, these improperly granted exemptions would have erased demand for another 260 million gallons of low-carbon renewable fuels, undermining the rural communities that depend on a strong RFS. We are greatly encouraged by EPA’s actions, which are consistent with President Biden’s commitment to stem the tide of unwarranted refinery exemptions and put the RFS back on track.”
Growth Energy also welcomed news of the EPA’s motion. “EPA is addressing the previous administration’s mishandling of the SRE program, including the midnight-hour grants of three SREs to Sinclair,” said Emily Skor, CEO of Growth Energy. “We are hopeful that EPA will continue to rein in the SRE program to achieve its limited purpose and ensure that the RFS advances the biofuels industry today and in the years to come.”
The American Coalition for Ethanol expressed hope that the EPA plans to get the RFS back on track. “Ahead of Trump EPA’s hasty approval of these three SRE requests, ACE sought assurance from the EPA Inspector General that any last-minute SREs complied with federal law,” said Brian Jennings, CEO of ACE. “We're glad to see EPA is trying to right this wrong by asking the court to vacate the waivers and hope this action is one of many steps the Agency plans to make to get the RFS back on track.”
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Apr 29, 2021
Claremont, Minnesota – Al-Corn, located in Claremont, MN, is celebrating 25 years of successful operations. Born out of conversations over coffee, at church and in other locations, farmers in the Claremont area sought ways to create a better local market for their corn.
On April 29, 1996 the process of converting corn into ethanol began with the first corn being ground. Originally constructed as a 10 million gallon a year facility, Al-Corn has undergone a series of expansion and modernization projects and now produces 125 million gallons annually. Each year the company grinds over 42 million bushels of corn and can produce 269,000 tons of high protein livestock feed, as well as 44 million pounds of corn oil.
“A key element for success has always been a willingness to engage in strategic partnerships, to work with others in the renewable fuels sector” said Rod Jorgenson, Chairman of the Board for Al-Corn. “This approach is one of the pillars upon which Al-Corn’s success has been built and we will continue to collaborate with others in the industry in order to seize market opportunities as they present themselves.”
Al-Corn’s business model has allowed for development of a successful financial foundation based on strength, investments that add value for members and their communities and decisions that have resulted in competitive returns. The products that come out of Claremont are consumed by refiners, livestock feeders, meat packers and biodiesel producers throughout Minnesota. In addition, Al-Corn ships its products to markets throughout the United States and around the world.
“While some may say we are a ‘first-generation’ ethanol plant, the reality is we are in the forefront of the ethanol industry due to our relentless focus on continuous improvement” said Al-Corn CEO Randall Doyal. “Al-Corn continues to utilize innovative technologies and creativity in order to reduce energy consumption and production costs while at the same time increasing efficiencies and reducing emissions.”
The Al-Corn plant has reduced water consumption to less than 2.2 gallons of water per gallon of ethanol and was the first plant to achieve “zero liquid discharge”. Energy conservation efforts have reduced the plant’s energy use by more than 38% compared to the original plant design.
The many benefits created by Al-Corn continue to benefit our local communities. Al-Corn has raised the local price of corn for every farmer in the area, which has helped support land values and rents in the region. Since its founding, Al-Corn has become a significant economic driver, having paid over $1 billion in corn for processing. The earnings to its owners, the direct and indirect jobs that have been created and the property and other taxes paid tell the true impact of this local success story and how Al-Corn continues to create benefits far beyond the wildest dreams of its original founders.
For additional information regarding Al-Corn Clean Fuel, please visit www.al-corn.com.
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Apr 21, 2021
A dozen senators on April 20 sent a letter to U.S. EPA Administrator Michael Regan requesting that he continue his commitment to support farmers and rural communities by upholding and restoring confidence in the Renewable Fuel Standard.
“Restoring the integrity of the RFS and expanding market opportunities for renewable fuels should remain a core part of our plans to assist in the economic recovery of rural America and further reduce emissions from the transportation sector,” the senators wrote. “It is for this reason that when considering the 2021 and 2022 renewable volume obligations (RVO), we also urge you to require conventional renewable fuel volumes of at least 15 billion gallons per year, as required by the statute, along with the court-ordered 500 million gallons illegally waived from the 2016 standards and increase biodiesel, advanced and cellulosic volumes.”
The senators stress that since its inception in 2007, the RFS has bolstered rural economies, diversified the fuel supply, strengthened national security, and reduced greenhouse gas (GHG) emission from the transportation sector. The letter also addresses the challenges the biofuels industry has faced as a result of the COVID-29 pandemic.
“Despite the damage done by the pandemic the RFS remains an effective tool for reducing greenhouse gas emissions and expanding economic opportunity in rural America,” the senators wrote. “In fact, a recent analysis found that the RFS has reduced greenhouse gas emissions by 980 million metric tons since 2008; equivalent to removing 212 million passenger vehicles (roughly four out of five registered automobiles) from the road for an entire year. We request that the EPA update its own modeling to help affirm these emissions reductions.”
The letter also discusses the EPA’s recent move to extend RFS compliance deadlines for 2019 and 2020 and the many small refinery exemptions (SREs) approved by the previous administration, both of which benefit small petroleum refiners. In addition, the senators also address the oil industry’s claim that high renewable identification number (RIN) prices threaten the viability of its refineries, stressing that the EPA has previously noted that “’…high RIN prices do not cause significant harm to refiners,’ because all obligated parties are generally able to recover the cost for compliance.”
“We disagree with the assertation that it is impossible for refiners to comply with the RFS in 2021,” the senators wrote. “Refiners have numerous options at their disposal to comply with the RFS, including by blending more renewable fuels (flex fuel, E15, or biomass-based diesel), purchasing RIN credits from obligated parties that are blending more biofuel than required, utilizing surplus RIN credits, or carrying over their compliance deficit into the next year. Even so, as EPA recently stated in its brief response brief in HollyFrontier v. RFA, ‘creating incentives for market participants to replace petroleum fuels with renewable fuels is a core purpose of the RFS.’”
The senators urge Regan to reject requests to waive or reduce the RVOs under the RFS and “continue his commitment to support farmers and rural communities by upholding and restoring confidence in the RFS.”
The letter is signed by Sens. Amy Klobuchar, D-Minn.; Deb Fischer, R-Neb.; Tina Smith, D-Minn.; Chuck Grassley, R-Iowa; Debbie Stabenow, D-Mich.; Michael Rounds, R-S.D.; Richard Durbin, D-Ill.; John Thune, R-S.D.; Tammy Baldwin, D-Wisc.; Roger Marshal, R-Kan.; Josh Hawley, M-Mo.; and Joni Ernst, R-Iowa.
Growth Energy has issued a statement in support of the letter. “We’re grateful for Senators Klobuchar’s and Fischer’s leadership in underscoring to EPA that restoring integrity to the RFS will assist in the economic recovery of rural America and help the Administration reach its climate goals,” said Emily Skor, CEO of Growth Energy. “EPA should not give in to oil refiners’ claims that renewable volume obligations should be reduced because of COVID-driven demand reductions when EPA itself just recently told the Supreme Court that ‘…creating incentives for market participants to replace petroleum fuels with renewable fuels is a core purpose of the RFS.’
“We are continuing to work with Administrator Regan, the Biden Administration, and our biofuels champions in Congress to ensure the RFS is followed as Congress intended.”
A full copy of the letter can be downloaded from the Growth Energy website.
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Apr 20, 2021
A group of 50 former House and Senate leaders representing 42 states on April 20 sent a letter to Gina McCarthy, President Biden’s national climate advisor, in support of the administration’s dedication to building back better for a green future.
The letter stresses that “truly economy-wide change requires sustained political willpower, which will only come from a 50-state strategy that lifts working families – from coastal cities to farm country.” Fortunately, the letter notes that every state in America is blessed with talented labor and diverse renewable resources capable of supporting a new generation of green jobs.
“The path to success has already been demonstrated in innumerable ways. Iowa is now the leader in wind energy, which provides 42 percent of its electricity – more than any other state,” the leaders wrote. “In California, the Low Carbon Fuel Standard (LCFS) unlocked the transportation potential of farm-based biofuels, which have delivered almost 80 percent of all carbon reductions under the state’s climate agenda. Time and again, we have seen smart policy prove that climate action can be harnessed to rebuild neglected communities.
“That is why, as you work to turn an ambitious agenda into concrete policies, we urge you to ensure that America’s clean energy future offers a diversity of opportunities for America’s blue-collar workers, farmers, and low-income households,” they continued. “The climate is changing fast, and we do not have the luxury of pursuing solutions that will fall victim to shifting political winds. Now is the time to act quickly to deliver for disadvantaged communities, who cannot afford to be left out of the clean energy revolution.”
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