In the News
Aug 26, 2015
By U.S Grain Council
This marketing year’s U.S. ethanol exports are expected to be the second largest on record as ethanol export promotion efforts ramp up by the U.S. Grains Council (USGC) and its partners Growth Energy, the Renewable Fuels Association and USDA’s Foreign Agricultural Service.
“Efforts to promote increased exports of U.S. ethanol are showing progress, with global ethanol exports during the first 10 months of the current marketing year posting an 11 percent gain over last year’s numbers,” said USGC Chief Economist Mike Dwyer. “The Council now expects full year 2014/2015 ethanol exports to reach 850 million gallons and to be valued at $1.9 billion, up from 768 million gallons just last year.”
While 2015 exports of U.S. ethanol to Canada – the top international customer - are down 26 percent on a volume basis, all other major markets have shown increases due to strong demand and U.S. ethanol supplies that are competitively priced.
The second and third largest importers, Brazil and the Philippines, have grown 71 percent and 44 percent respectively to 135 million gallons and 71.2 million gallons. India and the United Arab Emirates round out the top five export markets for U.S. ethanol.
Other markets seeing significant growth during the first 10 months of 2014/2015 include Korea, Mexico, the European Union and Tunisia.
Korea, which imports U.S. ethanol primarily for industrial purposes, has increased imports of U.S. ethanol by 94 percent to 42.3 million gallons, and Mexico's imports have grown by 17 percent to 26.1 million gallons.
Tunisia’s imports of ethanol have increased 224 percent over 2014 tallies to a total of 30.7 million gallons. Despite stiff anti-dumping duties imposed on U.S. ethanol entering the EU, U.S. exports are up 27 percent in the first 10 months compared to 2013/2014 volumes, totaling 41.5 million gallons.
While this success is a good starting point, there is still much work to be done to keep ethanol exports growing. The Council and its partners have plans for ongoing work to promote U.S. ethanol as a clean-burning source of fuel to buyers and end-users around the globe including assessments in potential new markets; buyer team visits to the United States; and a series of workshops focusing on the environmental and economic benefits of ethanol use.
Read the original story here : USGC Reports Progress In Ethanol Export Promotion
August 21, 2015
By the Minnesota Soybean Research and Promotion Council
While the leaves on the trees have yet to turn color, and the cold blast of winter remains a distant memory to some, the change of seasons could yield new economic opportunities for Minnesota’s biodiesel industry.
At a forum sponsored by the Minnesota Soybean Research and Promotion Council, attendees listened as a diverse group of energy influencers described Bioheat, a blend of biodiesel and heating oil, as a 21st century heating oil that promises to increase the diversity of the U.S. energy supply. In the soybean fields of Minnesota, farmers are growing that diversity.
“Biodiesel has earned its stripes as a transportation fuel,” said Tom Slunecka, CEO of the Minnesota Soybean Research and Promotion Council. “The heating oil market represents an exciting opportunity for Minnesota to continue its role as a leader in renewable energy.”
New markets and uses for biodiesel offer significant potential for U.S. soybean farmers and the entire biodiesel industry. Within the biodiesel market, soybean oil has a 50 percent share. Heating oil is well established in many of the New England states such as Maine, Vermont and New Hampshire as heating oil has traditionally provided an economical way to meet the heating needs of homes, multifamily dwellings, and small businesses. A homeowner can use 1,000 gallons over the season. Bioheat has positive environmental attributes. According to a report released by the National Oilheat Research Alliance, biodiesel blends at 20 percent (B20) with ultra-low sulfur heating oil are lower in greenhouse gas emissions (GHG) than natural gas when evaluated over 100 years, while blends of 2 percent (B2) or more are lower in GHG than natural gas when evaluated over 20 years.
The report also found that biodiesel blended at 5 percent would require approximately 300 MMgy. Assuming the biodiesel industry average of 50 MMgy per plant, Bioheat would be responsible for six plants built and continuously operated. Thus, nearly 270 full time jobs can be directly attributed to Bioheat.
“Biodiesel blending into home heating oil has proven to be a winner,” said Paul Nazzaro, CEO of the Nazzaro Group and advisor to the National Biodiesel Board. “With a decade of technical and market positioning on the record, continued support from biodiesel stakeholders like Minnesota Soybean will be imperative to keep this momentum intact to ensure biodiesel producers have a healthy and growing market to move their production allocations long term.”
Read the original story: Minnesota Poised to Play a Role in Next-Generation Heating Oil
Aug 24, 2015
By Dave Shaffer
A four-year patent battle over a promising corn-based alcohol called isobutanol ended Monday, boosting prospects for the world’s only producer in Luverne, Minn.
Under the agreement, Gevo, based in Englewood, Colo., and Butamax, a Wilmington, Del., venture of BP and Dupont, have cross-licensed their technologies. The royalty structure gives each company explicit incentives to expand separate market segments for isobutanol — for the benefit of both companies.
“That is the strange thing about this and the world of business — they are now our friends,” Gevo CEO Pat Gruber said of his competitor in an interview. “We wish them success. Go, Butamax, go, and develop the marketplace. That makes more markets for us.”
Isobutanol is a chemical cousin of ethanol, and is produced using fermentation. It can be blended with gasoline at up to a 16 percent ratio for use in engines, and does not have the same issues as ethanol in boat motors and small engines. It also can be turned into jet fuel, solvents and other chemicals such as paraxylene used to produce plastic pop bottles.
The agreement calls for Butamax to take the lead winning regulatory approvals to open up markets for isobutanol-blended gasoline in on-the-road vehicles. Meanwhile, Gevo will develop the jet fuel market. Gevo has sold isobutanol-based jet fuel to the U.S. military, and has won marine-industry endorsement of isobutanol-blended gasoline. No royalties will be paid by either company for the first 30 million gallons produced annually by each company or for any sales as off-road vehicle fuel or to make solvents.
Both companies have been suing each other, mostly in U.S. District Court of Delaware, since early 2011. At one point, Gruber said, more than 10 lawsuits were underway. He said litigation accounted for 30 percent to 40 percent of Gevo’s monthly cash burn, and even more during trials, although the exact figure hasn’t been disclosed.
Now that the legal expenses have ended, “it is the equivalent of putting money on our balance sheet that we can use for other things,” Gruber said.
He said Gevo plans to invest in distillation columns at Luverne to achieve continuous isobutanol production. Until now, the product has been fermented in batches in Luverne and distilled elsewhere. Gevo has a Texas facility to convert isobutanol to jet fuel.
Butamax has a demonstration plant in United Kingdom, but has not begun commercial-scale isobutanol production. When Highwater Ethanol, a farmer-owned ethanol plant in Lamberton, Minn., installed equipment to separate corn oil last year, it chose technology from Butamax. Neither Highwater nor Butamax on Monday would discuss whether further investment is planned to begin isobutanol production.
But Highwater CEO Brian Kletscher, who is president of the Minnesota Biofuels Association, said the settlement is good for the industry.
“It is good to see two companies working together,” he said. “I hope it will be a good thing and get us out of the development stage and into new biofuels in the country.”
Gevo acquired the Luverne ethanol plant in 2010, installed its technology and expected to be producing 500 million gallons of isobutanol annually at multiple sites by now. But making commercial quantities proved to be a challenge. Two years ago, Gevo resumed making ethanol in the Luverne plant but continued to work on isobutanol production.
In the meantime, Gevo has accumulated a deficit of $325 million, including $22 million in net losses in the first half of this year. It had $22.5 million in cash at the end of June, and said it would seek to raise more investment to keep going.
Gevo’s stock, which had briefly slipped to less than $2 per share earlier this year, rose 4 percent Monday, closing at $2.38 per share.
Read the original story here : Ending Years Of Litigation, Gevo And Butamax To Work On Creating Markets For New Biofuel
Aug 21, 2015
By Holly Jessen
The argument that consumers don’t want E15 because they aren’t asking for it doesn’t ring true with Ron Lamberty, senior vice president for the American Coalition for Ethanol. At the ACE conference, held Aug. 19-21 in Omaha, Lamberty brought up a Steve Jobs quote while speaking on Aug. 20, saying “A lot of times, people don’t know what they want until you show it to them.”
That jives with the experience of retail gas station owners who have added E15 and other higher blends to their fuel offerings. Lamberty brought up Charlie Good, a Nevada, Iowa gas station owner, who sells 18 percent ethanol by total volume, blasting through the so-called blend wall. He also has premium fuel with no ethanol content, which is only 2 percent of his total sales, even though it is sold at twice the number of fueling positions as ethanol blended fuels.
Lamberty also gave audience members updated numbers from Bruce Vollan, a South Dakota gas station owner who has talked multiple times about his success selling ethanol blended fuels. In the last few months, 23 percent of sales have been E85, 21 percent E15, 9 percent E30 and 2 percent E50. The final 45 percent of sales is E10. Looking at these and other numbers from retailers offering ethanol blended fuels, it’s clear that what people don’t want is premium gasoline, Lamberty said.
Jim Pirolli, vice president of fuels for Kum & Go, and Todd Garner, CEO of Protec, spoke as part of a presentation titled “Flex Fuel Forward.” Pirolli revealed that Kum & Go has a long history of selling alternative fuels. In the 70s the company started the tradition by offering E10, or gasohol, as it was called at the time.
In 1997, the company started selling E85, and currently offers it at 170 locations. In fact, 95 percent of Kum & Go’s customers buying E85 are there because they know the company offers that E85, he said. Another tidbit of information offered at the meeting was that, about six months ago, Kum & Go began purchasing E85 directly from Iowa ethanol plant Absolute Energy LLC. It cuts the middleman out and allows it to offer E85 to its customers in that area for a lower price, Pirolli said.
This year, the company has started adding E15. The fuel is now offered at seven sites and will be at 60 more by the end of the year. “We are already associated with E85, we feel like E15 is going to be a great step for us,” he said.
Garner gave a brief overview of what the company does, including, among other things, offering small to midsize gas retailers help with fuel logistics, E85 and E15 blending and supply plus station infrastructure conversion or construction. About eight months ago, the company started work to roll out E15 at multiple gas stations outside the Midwest with Prime the Pump funding, an initiative of the ethanol industry.
Lamberty pointed to the way Protec works with gas station retailers as being similar to the model retailers are used to from the oil industry. The way the oil industry has done it is to tell retailers what equipment upgrades would be required, the cost and then say they would pay for those upgrades in return for a contract that the retailer would purchase fuel from that supplier for a period of time, such as 10 years. “That’s the model the oil companies had used to get brands,” he said, adding later that “We as the ethanol industry need to do something similar.”
Another presenter was Kristi Moriarty, senior analyst at the National Renewable Energy Laboratory, who spoke about work NREL did that concluded that many refueling equipment products are compatible with E15, meaning retailers can sell E15 out of existing equipment with minimal cost. “We hope that this report helps [retail gas] stations get there,” she said.
She also pointed to an upcoming opportunity for retailers to upgrade to refueling equipment compatible with higher ethanol blends. Retailers face a requirement targeted for October 2017 to upgrade fuel dispensers to accept new credit cards, which contain chips, rather than the magnetic strips common today. Although some will simply upgrade their existing pumps, some retailers will put in new dispensers. “Hopefully that will lead to a lot more compatible equipment,” she said.
Garner expanded on this point by saying that many older retail stations will have no choice but to put in new dispensers. He added that yes, choosing a blender pump, compatible with higher ethanol blends will cost more, but it will also set that retail station apart from the competition.
A related topic of importance at the conference was the renewable fuel standard (RFS) renewable obligation volume (RVO) numbers. Brian Jennings, executive vice president of ACE, pointed out that of the 200 people that testified at a Kansas City U.S. EPA hearing on the proposed rule for the 2014, 2015 and 2016 RFS RVO numbers, more than 100 of them were from ACE member companies. The question now is, “What if the EPA drives the RFS in the ditch?” he said. “Do we take them to court? Maybe. We’ll see.” In the meantime, the industry needs to keep building momentum on other demand drivers for ethanol.
On Aug. 21, the last day of the event, Chris Novak, CEO of the National Corn Growers Association, touched on the same topic. NCGA believes the EPA has violated the law and used incorrect methodology to calculate the RVO numbers. “We are looking at what legal options we have to challenge that rule,” he says.
Also presenting on Aug. 21 were Delayne Johnson, CEO of Quad County Corn Processors, Jeff Oeastmann, president and CEO of East Kansas Agri-Energy, and Ray Defenbaugh, president, CEO and chairman of Big River Recourses LLC. They were on a panel titled “Quiet Ingenuity, Bold Advance,” which was also the theme of the conference. Johnson spoke about producing cellulosic ethanol from corn fiber while Oeastman and Defenbaugh spoke about the projects currently under construction by their companies, a bolt-on renewable diesel and zein production facilities, respectively.
Read the original story here : E15, E85 At Retail Gas Stations Highlighted At ACE Conference
Aug 20, 2015
By Mike Bryan
Most of us find it strange and frustrating that we are continually at loggerheads with the U.S. EPA over a variety of issues pertaining to the use of higher blends of ethanol and the continuation of the renewable fuels standard (RFS). But it should not come as any surprise, because when we look at the relationship between the EPA and ethanol, there is a long history of antagonism and sometimes outward hostility by the EPA toward ethanol.
There probably has not been a liquid fuel that has endured more testing by the EPA than ethanol. There have been no automotive fuels, that I am aware of that have had as many stumbling blocks put in front of them by the EPA as ethanol.
Look at the history—evaporative emissions, permeation, NOx emissions, formaldehyde, land use, fuel economy testing, pump labeling—the list is almost endless. Most, if not all, of these were issues generated by the EPA with oil industry prodding. As a result, many of these draconian policies and ideas were adopted on a state level, with California being the most prominent.
Some would argue that the oil industry was forced to reduce emissions as well, with the most significant being octane enhancers like benzene, toluene and xylene (BTX). While that was, in fact, the case, ethanol provided an easy answer. It boosted the octane and replaced large amounts of BTX in gasoline with a clean, domestically produced, renewable energy. The oil industry over the years has essentially had a free ride, thanks to the EPA and federal and state governments.
Even today, the tax incentive for ethanol was stripped away, but remains in place for an industry that extracts hundreds of billions of dollars in profit every year from the American consumer. The oil industry has not substantially changed its methods of production in the past hundred years. I guess the EPA has simply grandfathered in their right to pollute.
The truth be known, the auto industry has done far more to reduce pollution than the oil industry has ever had to do. Tighter restrictions of automotive emissions and their continued quest for better, more fuel-efficient and cleaner automobiles should put the oil industry to shame. Yet, oil gets the EPA’s nod of approval over and over, while at the same time the EPA seems to do everything it can to further restrict the use of ethanol.
Way back when, I naively thought that ethanol would become the fuel of choice for the EPA and they would be allies in turning the tide away from oil. In fact, just the opposite has been true. The EPA has fought ethanol tooth and nail all the way and has had to be dragged kicking and screaming into accepting ethanol blends as a major contributor to cleaner air and energy security.
With allies like the EPA, we certainly don’t need enemies.
That’s the way I see it.
Read the original story : EPA More Enemy Than Ally To Ethanol
(Colwich, Kan. August 17, 2015) – ICM Inc proudly announces successful completions of its first and second 1,000-hour performance runs (1100 continuous hours each run) of its patent-pending Generation 2.0 Co-Located Cellulose Ethanol process. The runs, performed at ICM’s pilot plant in St. Joseph, Missouri, prove out the co-located technology design for the conversion of cellulosic biomass feedstocks, including energy crops such as switchgrass and energy sorghum, agricultural crop residues, and forestry residues, to cellulosic ethanol and co-products.
The first performance run, which ran from March to late April, focused on switchgrass, a perennial crop as its feedstock. The second performance run, which ran from early June to late July, focused on energy sorghum, an annual crop as its feedstock. Essentially, both runs were similar in nature, but with a few minor operational modifications included to allow for smoother operation between the two runs.
The 1,000+ hours of continuous production in each run are a significant achievement, as it qualifies these data sets for federal loan guarantee programs, which can be utilized in the financing of new, advanced generation renewable energy technologies.
From both mechanical and process operations perspectives, the two 1,000-hour Generation 2.0 (Gen. 2.0) runs performed continuously and exceptionally well on a 24/7 basis, as would be required in a commercial operation.
These runs also validate ICM’s co-located model that produces valuable boiler fuel and animal feed co-products in addition to cellulosic ethanol.
“This achievement is important because it provides operational confidence at a commercially relevant scale. We used all commercial-type equipment for these performance runs that processed 10 dry tons of feedstock per day. At that scale, we were able to achieve continuous operations throughout both performance runs to generate key data required to move forward to commercialization as the market provides demand for Gen. 2.0 Cellulosic Ethanol and co-products.” said Dr. Doug Rivers, ICM’s Director of Research and Development (R&D).
Previously in December 2012, ICM’s R&D team successfully completed a 1,000-hour run of an integrated cellulosic corn fiber campaign to prove out its patent-pending Generation 1.5 Grain Fiber to Cellulosic Ethanol Technology™ (Gen. 1.5), which resulted in substantial operating and capital expense cost savings over a Gen. 2.0 approach to cellulosic ethanol production. The 1,000-hour run for Gen. 1.5 was achieved through the sequential completion of twenty-four 15,000-gallon pilot fermentations and five 585,000-gallon commercial scale fermentations. In addition, this performance run demonstrated the production of high protein dried distillers grains (DDG) as a valuable co-product of ICM’s Generation 1.5 Grain Fiber to Cellulosic Ethanol Technology™ process.
ICM believes that the success with each of these three 1,000-hour runs comes from the dedicated individuals and extensive testing of various feedstocks at the pilot scale for next generation conversion technology to produce renewable fuels that meet low carbon fuel standards.
“We believe our novel approach to Generation 2.0 ethanol production will add value to both agriculture and the ethanol industry going forward. Our R&D staff has been able to achieve results that we believe will pave the way for expanded use of cellulose as a feedstock to produce low carbon fuels for America” said ICM Principal Scientist and Cellulose Team Leader Jeremy Javers.
“We want to thank the U.S. DOE Bio Energy Technology Office (BETO) for their ongoing support since obtaining the U.S. DOE award (DE-EE0002875) for this project. We are encouraged by the results achieved during these three 1,000-hour performance runs. Our patent-pending Generation 1.5 Grain Fiber to Cellulosic Ethanol Technology™ is designed as a bolt-on product, which can be added to existing corn/milo (sorghum) ethanol plants and our patent-pending Generation 2.0 co-located design will pave the way for expanded use of biomass as a feedstock for fuels and chemical production in the future. These successful runs validate ICM’s ability to continually add value to grain already being processed in existing U.S. ethanol plants, as well as biomass,” said ICM CEO Dave Vander Griend.
Aug 17, 2015
WASHINGTON - The Renewable Fuels Association is applauding Fiat Chrysler Automobiles’ decision to approve the use of E15 (15 percent ethanol and 85 percent gasoline) in its model year (MY) 2016 Chrysler/Fiat, Jeep, Dodge and Ram vehicles. The decision means that FCA joins General Motors and Ford (the “Detroit Three”) in covering E15 in its warranty statements; GM started covering E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles. More than 12 percent of the vehicles sold so far in the United States in 2015 have been Chryslers.
RFA President and CEO Bob Dinneen, who specifically called on Chrysler to approve E15 during his State of the Industry address at this year’s National Ethanol Conference, called the decision “a seminal moment that augurs well for the continued expansion of E15.”
“FCA’s decision to join GM and Ford provides clear evidence that the tide on E15 has turned,” Dinneen said. “The automaker’s decision not to embrace E15 had been a major point of concern and tension for the last three years. FCA customers will be afforded a benefit that will likely lower their weekly motor fuel bill: the freedom to choose what fuel to put into their vehicles.”
By Poet LLC
August 13, 2015
Poet LLC, one of the world’s largest ethanol producers, released its first-ever economic impact study, revealing the significant impact Poet made to national economic growth and job creation in 2014, including:
- Generating a total of $13.5 billion in sales for U.S. businesses;
- Adding $5.4 billion in national gross domestic product;
- Supporting an estimated 39,978 full time jobs; and
- Contributing $3.1 billion in income for American families.
The report further details Poet’s contribution to the economic prosperity in each of the seven states where it operates—South Dakota, Minnesota, Iowa, Missouri, Indiana, Ohio and Michigan. Poet, which is headquartered in Sioux Falls, South Dakota, operates a total of 27 dry mill corn ethanol plants with an annual capacity of 1.7 billion gallons—more than 11 percent of the total U.S. ethanol output.
“Ethanol provides us the means to produce our own clean fuel and keep the enormous economic benefits within America’s borders,” said Poet CEO Jeff Lautt. “The impact flows from the plants to farmers, communities, throughout the states in which they operate and across the nation.”
In addition, the report cites Poet’s impact on reducing foreign oil dependence. According to the study, Poet’s production of 1.7 billion gallons of ethanol displaces nearly 1.2 billion gallons of gasoline, which requires 61 million barrels of crude oil to produce. This displacement potentially reduces the outflow of money to foreign producers of oil by nearly $5.5 billion.
The use of Poet ethanol also reduces greenhouse gas emissions relative to gasoline. Burning a gallon of ethanol opposed to gasoline results in a 35 percent reduction of carbon dioxide (CO2) emissions. Reflecting this, the production of 1.7 billion gallons of Poet ethanol cuts CO2 emissions by approximately 874,000 metric tons.
Poet employees, stakeholders, family and friends are celebrating the announcement today at a series of Poet Ethanol Day events in its operating states, where attendees can enjoy food, activities and hear from local officials.
To read the full report and find additional information on state-level data, please visit: http://www.poet.com/impact.
And read the original story: Poet Releases First-Ever Economic Impact Study
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By Dave VanderGriend
Aug 13, 2015
Anyone even remotely connected to the ethanol industry knows these are tough times. Having gone from being the hero of the 2007 Energy Security and Independence Act, which created the expanded renewable fuels standard (RFS), to being vilified by the petroleum industry and its friends in the press, we are running out of cards to play in a stacked deck, with the U.S. EPA as the dealer. The RFS is very important to our industry, but focusing on it alone, has caused us to take our eye off the dealer. The down card trumps everything in the deck and it’s called the MOVES model, which stands for Mobile Vehicle Emissions Simulator.
Unfortunately, this model relies on faulty, manipulated data, resulting in inaccurate emission increases that will cripple any hope for ethanol expansion and the use of higher blends. And, this is taking place as the EPA gets closer to imposing tighter ozone controls, which could put another third of the U.S. into ozone nonattainment, and therefore under federal control. Once that happens, states have to develop a state implementation plan to tell the EPA how they plan to get back into attainment. Here is why the MOVES model matters: When states plug in higher ethanol blends, the model says ethanol raises emissions.
How can this be? The basis for the MOVES model stems from fuel blending studies conducted by the EPA in a laboratory that, rather than looking at real world consumer fuels, used test fuels that became synthetic caricatures of how fuels are really blended. Even experts in a highly respected paper from the Society of Automotive Engineers said there was no justification for the EPA to conduct the fuel testing the way it did.
The Urban Air Initiative hired a reputable fuel blending consultant to test the model and our fears were confirmed. Data proves the MOVES model is biased against ethanol and blocks the goal of reducing toxic emissions and promoting a cleaner fuel. We have clear data to support that when simply adding ethanol to consumer E10 gasoline via splash blending, the result is a fuel with fewer toxic emissions. However, the manipulation of test fuels in the MOVES model tells a different story regarding ethanol.
An analogy from the ethanol process illustrates what’s being done with the test fuels. If your yields are off and fermentation is underperforming, you might change the temperature, the enzymes and five other variables. But each change is made separately in order to identify the true influencing factor. The EPA did the exact opposite in its testing, changing many of the fuel components at once, while increasing ethanol. Each time emissions increased, the EPA blamed ethanol. That would be akin to blaming enzymes no matter what other changes you employed in your fermentation.
We must stop the MOVES model from being implemented, or all of the industry’s other initiatives will be undermined. States will have their hands tied and will simply not be allowed to approve higher blends. That’s why we are fighting back, and we need your help. The Energy Future Coalition and the attorneys general of Nebraska and Kansas joined UAI and its supporters to file legal action against the EPA to block the MOVES model from being enforced. We believe winning this legal battle is critical to the future of our industry. The most recent filing in U.S District Court calls on the EPA to develop a new model, reflecting real world consumer fuels and blending practices. If we splash blend on a consumer E10, we know vapor pressure decreases, particulate emissions are reduced, carbon emissions are lowered, and importantly, we give automakers the octane they need for the next generation of cars.
Waging this legal fight and communicating the health benefits of clean burning ethanol requires resources and support from all of you who want to open the market for higher blends.
Read the original story here : EPA's 'MOVES' Could Cripple Higher Ethanol Blends
Aug 11, 2015
By Erin Voegele
The U.S. Energy Information Administration has published the August edition of its Short-Term Energy Outlook, predicting that ethanol production will remain near current levels in 2015 and 2016. A similar prediction was made in the July STEO.
Within the report, the EIA indicates that the U.S. EPA’s proposed rule to set volume obligations for the 2014, 2015 and 2016 renewable fuels standard (RFS) was used to develop the current short-term outlook.
According to the EIA, ethanol production averaged 935,000 barrels per day last year, and is expected to remain near current levels through next year. On a quarterly basis, the EIA shows ethanol production averaged 960,000 barrels per day during the first quarter of this year, falling to 950,000 barrels per day during the second quarter. During the third and fourth quarters, ethanol production is expected to average 940,000 barrels per day. Moving into 2016, production is expected to average 960,000 barrels per day during the first quarter, falling to 940,000 barrels per day during the second and third quarters, and 930,000 barrels per day during the fourth quarter.
Ethanol consumption averaged 878,000 barrels per day last year and is expected to average 900,000 barrels per day this year and next year, resulting in a 9.9 percent ethanol share of the total gasoline pool. According to the EIA, it does not expect to see significant increases in E15 or E85 consumption over the forecast period. The administration also noted that proposed RFS targets are expected to encourage the import of Brazilian sugarcane ethanol, with averaged 3,000 barrels per day last year. Due to the expected increase in ethanol gross imports, net exports of ethanol are expected to fall from 51,000 barrels per day last year, to 43,000 barrels per day this year and 37,000 barrels per day in 2016.
Biodiesel production averaged approximately 81,000 barrels per day last year, and is expected to increase to an average of 91,000 barrels per day this year. In 2016, production is expected to reach 98,000 barrels per day. Net imports of biomass-based diesel are also expected to increase, from 16,000 barrels per day in 2014 to 24,000 barrels per day this year and 35,000 barrels per day next year.
The EIA said it expects a combination of higher biomass-based diesel consumption, higher consumption of domestic and imported ethanol, and banked renewable identification numbers (RINs) will help meet the newly proposed RFS volumes through 2016.
According to the STEO, U.S. regular gasoline monthly average retail prices averaged $2.79 per gallon in July, down 1 cent per gallon from June and 82 cents per gallon lower than in July 2014. EIA expects the monthly average gasoline prices to decline from their July level to an average of $2.11 per gallon during the fourth quarter of this year. The EIA also predicts U.S. regular gasoline retail prices will average $2.41 per gallon for all of 2015.
According to the EIA’s most recent weekly ethanol production data, production averaged 961,000 barrels per day the week of July 31, down slightly from 965,000 barrels per day the prior week. The administration’s most recent monthly data, shows only 8,000 barrels of ethanol was imported in May, all from Canada. May exports, however, were 1.54 million barrels. Canada, Brazil, and Oman were the top three export destinations during the month.
Read the original story here : EIA Predicts Ethanol Production Will Hold Steady Through 2016
Aug 10, 2015
The topic of how higher ethanol blends help fuel retailers to succeed will be highlighted during the ACE Conference in Omaha, Nebraska, August 19-21.
The CEO of Protec Fuel, Todd Garner, and Kum & Go’s Vice President of Fuels, Jim Pirolli, will be participating in an E15 panel on August 20.
The panel involving the two fuel retailers is part of the day-one agenda of the conference which will focus heavily on the sale and handling of E15 and flex fuels. Also scheduled to speak August 20 is Kristi Moriarty, one of the authors of a National Renewable Energy Laboratory (NREL) report investigating the true costs of E15 fueling infrastructure.
“The ethanol industry needs to understand the challenges facing fuel retailers who want to sell more ethanol-blended fuels. Last year’s conference presentation by single-station and small chain operators received overwhelmingly positive reviews, so we’re providing this year’s attendees with two additional perspectives from the ‘downstream’ fuel marketplace. Kum & Go is a large c-store retail chain with a history of leadership with E85, that can tell us why adding E15 isn’t as simple as decaling pumps and dropping fuel in the tank. Protec is a fuel distributor with an interesting approach to expanding the availability of E15 and flex fuels by providing retailers with ethanol-blended fuels and the equipment needed to sell them,” said ACE Senior VP Ron Lamberty. “And on the topic of ‘equipment needed to sell E15,’ we’re excited to have NREL present their recent authoritative study on that very subject. It’s good news for fuel marketers, but fuel marketer groups seem strangely unhappy their $400,000 per store cost predictions have been proven wildly inaccurate.”
The theme of the August 19-21 ACE Conference is “Quiet Ingenuity, Bold Advance.” The event will also feature a talk on technology and advanced biofuel innovations involving Ray Defenbaugh, President and CEO of Big River Resources LLC, Delayne Johnson, CEO of Quad County Corn Processors, and Jeff Oestmann, President and CEO of East Kansas Agri-Energy, LLC, a progress report on ethanol and DDGs exports, ethanol plant board member training, and much more.
Click this link to view the agenda and register for the ACE Conference.
Aug 5, 2015
By Richard Childress
As a former NASCAR driver and current team owner, I know a thing or two about engines, performance and fuel. My team’s success depends on using the best technology to get the best results. I would never turn my back on a competitive advantage. That’s why I support the Renewable Fuel Standard (RFS) and the use of E15, a higher blend of ethanol fuel, in NASCAR racing.
My team didn’t win six Sprint Cup championships, six Nationwide Series championships and two NASCAR Camping World Truck Series championships by not paying attention to the performance details of our race cars. So when NASCAR decided to switch to a 15 percent ethanol fuel in 2011, we did our homework.
We didn’t listen to the empty rhetoric surrounding ethanol. We did our own testing and proved that higher blends of ethanol deliver. Since switching fuels, NASCAR has experienced an increased horsepower from a higher-octane ethanol fuel blend and decreased emissions. After five years and over seven million miles, E15 has proven its merit. It has met and exceeded the performance requirements for the most demanding driving situations imaginable.
I’m passionate about winning each week on the track. I’m equally passionate about my country, its sustainability, economic health and security. That’s why I support the RFS. After sitting on the Board of Directors at Growth Energy, the country’s leading trade association of ethanol and renewable fuel producers, I’ve come to understand the important role ethanol plays in America and its amazing potential as we begin producing the next generation of fuels.
The RFS has been the most successful energy policy this nation has adopted in the last 40 years.
The RFS has created American jobs, revitalized rural America, reduced our dependence on foreign oil, made our nation more energy independent and improved our climate security. Renewable fuel has reduced our dangerous dependence on foreign oil by nearly two thirds. It has opened up the vehicle fuels market by injecting competition and providing drivers with savings. Currently, the RFS supports nearly 400,000 American jobs and generates nearly $53 billion in economic activity.
Besides, no beaches have ever been closed because of an ethanol spill.
But now, on the 10-year anniversary of this bipartisan policy, our nation finds itself at a crossroads. Recently, the Environmental Protection Agency (EPA) issued a proposed rule that would drastically cut back the production of ethanol and other biofuels. Not only would this affect production of ethanol, but it would severely hinder innovation and investment in next generation fuels made from sources like biomass and farm waste.
Americans have made their voices heard, telling America’s leaders to move the RFS forward not backward. After all the great strides we have made and the exhaustive testing of E15 and other higher blends – with truly exceptional results – it is time to take the next step in biofuels production. But we can’t if EPA blocks the path moving forward.
If E15 can handle the Daytona 500, Talladega or the Brickyard, it will definitely meet the needs of daily drivers. It is finally time to break through the mythical “blend wall.” It is time to reduce our dependence on foreign oil, step up our efforts to improve our environment and ensure America’s rural economy stays robust. It is time to give consumers the choice of a less expensive, higher performing fuel.
Most importantly, it is time for the EPA to follow the law and help move our nation forward on the development of renewable fuel.
Read the original story here : Why The EPA Must Move Forward With Biofuels
Aug 3, 2015
WASHINGTON — Renewable Fuels Association (RFA) President and CEO Bob Dinneen applauded a recent decision by the Environmental Protection Agency (EPA) to recalculate its ethanol export estimates for 2014. In a memorandum, which was placed on the RVO docket on July 24, EPA acknowledged that it made an error in determining the 2014 available supply of Renewable Identification Numbers (RINs), which are credits used to keep track of the amount of ethanol.
“Kudos to the EPA for recognizing this important error and reassessing the 2014 ethanol export data,” said Dinneen. “This is a critical issue because it affects the estimate of how many RINs generated in 2014 will remain available for compliance with biofuel obligations required by the Renewable Fuel Standard (RFS). It also has implications for estimates of RIN carryover stocks.”
The memo comes after RFA and member biofuel companies raised the issue in correspondence with the EPA in early June and again at a public hearing on June 25 on the RFS in which dozens of commenters took issue with the agency’s proposal to slash the renewable blending volume obligations (RVOs) for 2014–2016.
According to the memo, “… public commenters indicated that they believed it was an error to treat the reported amounts of undenatured ethanol as being part of the 2014 supply of RINs. Ethanol that is exported in undenatured form would not have generated RINs, and thus should not have been subtracted from the total number of RINs generated for fuel ethanol in 2014 for purposes of calculating the available supply of RINs for 2014 in the proposal. EPA intends to account for this…in the determination of the appropriate volume requirements in the final rulemaking.”
As a result of EPA’s error, the agency will likely revise the 2014 RVO. This revision could increase the blending obligation for renewable fuel from a proposed level of 13.25 billion gallons to more than 13.6 billion gallons.
“We applaud the EPA for responding to stakeholder feedback and committing to make the requisite change regarding exported ethanol in the final rulemaking,” said Dinneen. “However, as underscored in the comments we submitted to the EPA last week, we continue to urge the Agency to consider carryover RIN stocks in determinations of ‘available supply.’ We hope and trust that EPA will make other changes consistent with the facts on the ground—and the law—prior to issuing a final rule in November.”
- See more at: http://www.ethanolrfa.org/news/entry/rfa-applauds-epa-for-recalculating-2014-ethanol-export-estimates/#sthash.pFOxH1Wu.dpufWASHINGTON — Renewable Fuels Association (RFA) President and CEO Bob Dinneen applauded a recent decision by the Environmental Protection Agency (EPA) to recalculate its ethanol export estimates for 2014. In a memorandum, which was placed on the RVO docket on July 24, EPA acknowledged that it made an error in determining the 2014 available supply of Renewable Identification Numbers (RINs), which are credits used to keep track of the amount of ethanol.
“Kudos to the EPA for recognizing this important error and reassessing the 2014 ethanol export data,” said Dinneen. “This is a critical issue because it affects the estimate of how many RINs generated in 2014 will remain available for compliance with biofuel obligations required by the Renewable Fuel Standard (RFS). It also has implications for estimates of RIN carryover stocks.”
The memo comes after RFA and member biofuel companies raised the issue in correspondence with the EPA in early June and again at a public hearing on June 25 on the RFS in which dozens of commenters took issue with the agency’s proposal to slash the renewable blending volume obligations (RVOs) for 2014–2016.
According to the memo, “… public commenters indicated that they believed it was an error to treat the reported amounts of undenatured ethanol as being part of the 2014 supply of RINs. Ethanol that is exported in undenatured form would not have generated RINs, and thus should not have been subtracted from the total number of RINs generated for fuel ethanol in 2014 for purposes of calculating the available supply of RINs for 2014 in the proposal. EPA intends to account for this…in the determination of the appropriate volume requirements in the final rulemaking.”
As a result of EPA’s error, the agency will likely revise the 2014 RVO. This revision could increase the blending obligation for renewable fuel from a proposed level of 13.25 billion gallons to more than 13.6 billion gallons.
“We applaud the EPA for responding to stakeholder feedback and committing to make the requisite change regarding exported ethanol in the final rulemaking,” said Dinneen. “However, as underscored in the comments we submitted to the EPA last week, we continue to urge the Agency to consider carryover RIN stocks in determinations of ‘available supply.’ We hope and trust that EPA will make other changes consistent with the facts on the ground—and the law—prior to issuing a final rule in November.”
July 29, 2015
Many gas stations are promoting E0, or gasoline with zero percent ethanol. It not only costs more than regular gasoline that contains 10 percent ethanol, new data shows it also burns dirtier in your engine which then puts more toxic emissions into the air.
Urban Air Initiative tested every E0 in Wichita, Kansas, and compared them to regular gasoline that contains 10 percent ethanol. The testing found toxic aromatics such as benzene and toluene were about 45 percent higher with E0. Benzene and toluene, which are known carcinogens, are added by oil refineries to boost octane in vehicles. However, these toxins create harmful emissions that cause air pollution which impact public health.
Click here for short video demonstrating UAI’s findings
UAI knows this isn't just a problem in Kansas. A recent study by the group Clean Fuels Omaha also found higher toxic emissions in Omaha, Nebraska with E0 compared to regular gasoline or E10.
The data is clear; adding ethanol to gasoline reduces toxic emissions, improves air quality and our health.
Read the original story here: UAI: Removing ethanol from gasoline increases toxic emissions
July 27, 2015
By Cindy Zimmerman
The Renewable Fuels Association (RFA) will once again partner with the Buffalo Chip Campground at the 75th annual Sturgis Motorcycle Rally, which will be held Aug. 3-9 in Sturgis, South Dakota. More than 1.5 million motorcycle enthusiasts are expected to attend the event this year for the big anniversary and RFA Vice President for Industry Relations Robert White the event offers a perfect venue to dispel some of the misconceptions about the use of ethanol blended fuel in motorcycles.
“We do that around the “Free Fuel Happy Hours,” said White. “From Sunday August 2nd through Thursday August 6 from 1 to 4 pm, any motorcyclist can come up and fuel for free with 93 octane 10 percent ethanol.” This is the fourth year that RFA has sponsored the free fuel happy hours and White says it also offers them the opportunity to talk one on one with bikers and provide them with information about ethanol.
In addition, White says messages about ethanol can be found throughout the Buffalo Chip Campground during the rally. “We have everything from banners to commercials on the Jumbotron at the main stage and we sponsor the Essentials Guide that goes out to every camper this year,” said White.
The event sponsorship has become more important in the last 2-3 years as the oil industry has worked with the motorcycle association to spread misinformation about 15% ethanol, which is not approved for use in motorcycles – a fact which is stated clearly on all pumps that sell E15. But White says the information they provide goes beyond motorcycles. “If there is 1.6 million or more people there, they all own lawnmowers, cars, trucks, SUVs, boats back at home,” he added.
Read the original story here: Ethanol to Help Fuel 75th Sturgis Motorcycle Rally
July 27, 2015
By Jim Lane
In Washington, EPA Administrator Gina McCarthy addressed the Corn Congress and said that ““you might’ve heard we’re trying to shrink or kill this [RFS] program. But the truth is, we’re committed to growing it. The volumes we’ve proposed for 2015 and 2016 are designed to bust through the blend wall.” She added that “our proposed 2016 standard for total renewable fuel is about 1.5 billion gallons more — almost 10% higher — than the actual 2014 volumes,” she added. “And the proposed 2016 standard for cellulosic ethanol is six times higher than what the market produced in 2014. So EPA isn’t just promoting growth; we’re pushing the envelope.” The agency’s comments period for the RFS comes to an end today (July 27), and the EPA has committed to finalizing the 2016 Renewable Fuel Standard by November 30th.
The Administrator added, “We know the delay last year in getting these standards out was disruptive to say the least. I apologize for that.”
Read the original story here : EPA Administrator To Corn Farmers : [Our RFS] Delay...Was Disruptive To Say The Least. I Apologize For That