In the News
January 13, 2016
WASHINGTON — The U.S. Environmental Protection Agency’s (EPA) vehicle emissions modeling system is inadequate and unreliable as a tool for estimating the exhaust emissions of gasoline blends containing more than 10 percent ethanol, according to a new comprehensive third-party evaluation of the model.
The evaluation of EPA’s latest Motor Vehicle Emissions Simulator (MOVES2014) model was conducted by scientists from Wyle Laboratories, Inc., and Volpe (part of the U.S. Department of Transportation), and commissioned by the Renewable Fuels Foundation.
“Overall, it was found that the predictive emissions results generated by MOVES2014 for mid-level ethanol blends were sometimes inconsistent with other emissions results from the scientific literature for both exhaust emissions and evaporative emissions,” according to the study. “…results and trends from MOVES2014 for certain pollutants are often contrary to the findings of other studies and reports in the literature.”
Of particular concern is that the MOVES2014 model predicts increased exhaust emissions of nitrogen components and particulate matter as the ethanol content in gasoline increases, even though real-world emissions testing based on mid-level ethanol blends has shown distinctly opposite trends. “The results from other researchers often show ethanol-related emissions trends that are different than the MOVES2014 results obtained for this study…” the study found. “In some cases not only were magnitudes different but different [directional] trends were presented.”
The study’s authors suggest the MOVES2014 model’s questionable predictions for certain emissions likely result from the use of data that misrepresents the actual parameters and composition of mid-level ethanol blends. Specifically, the default ethanol blend data in the model is based on arcane “match blending” methods intended to “match” specific fuel parameters, rather than “splash blending” methods that are used in the real world. According to the study, “…real-world splash blends may not have the same attributes as the modeled default match blends used in MOVES, and actual emissions may be different than the emissions predictions from MOVES.”
These likely distortions are then multiplied through the use of overly restrictive adjustment factors and equations. The authors write that “…the trends used to determine constants in the model’s equations may need to consider many more variables than are now being considered,” and “the adjustment factor approach may need to be more robust and consider the changes to emissions as a function of all properties, not independently.”
In an attempt to simulate the emissions of mid-level ethanol blends created using real-world “splash blending” practices, the Wyle and Volpe scientists performed an analysis where certain fuel parameters were modified. However, the model still produced questionable results that suggested increases in emissions of nitrogen components and PM as ethanol content increases.
To correct the deficiencies with the MOVES2014 model, the authors recommend obtaining new mid-level ethanol blend emissions data using blends that better represent real-world fuel properties and blending practices. They write that “…additional vehicle exhaust testing from mid-level ethanol blends with well-defined fuel properties is recommended.”
Commenting on the findings of the new study, RFA President and CEO Bob Dinneen said:
“This is more than an academic exercise. The MOVES model is used by state regulators to assess air quality and determine their progress and compliance with national emissions standards. It is thus essential that EPA’s model be accurate and based on sound science. Unfortunately, this analysis concludes that just like EPA’s now dated and misguided carbon intensity modeling for ethanol, the MOVES model is fundamentally flawed and biased against ethanol.”
To read the evaluation, click here.
Read the original story: New Study Questions Reliability of Ethanol Results from EPA Vehicle Emissions Model
Jan 11, 2016
By Erin Voegelle
On Jan. 8, seven agricultural and biofuel groups filed a petition with the U.S. Court of Appeals for the District of Columbia asking the court to review the U.S. EPA’s final rule setting 2014, 2015 and 2016 renewable volume obligations (RVOs) under the renewable fuel standard (RFS), along with the 2017 RVO for biomass-based diesel.
The petitioners include Americans for Clean Energy, American Coalition for Ethanol, Biotechnology Innovation Organization, Growth Energy, National Corn Growers Association, National Sorghum Producers, and Renewable Fuels Association.
A statement released by the petitioners indicates a preliminary, non-binding listing of issues to be raised in the court of appeals will be filed at a later date. Among other things, the petitioners said they intend to demonstrate that the EPA’s interpretation of its general waiver authority under the RFS statute was contrary to the statute.
“By focusing on fuel distribution capacity and demand rather than supply, and by failing to consider surplus [renewable identification numbers (RINs)] from prior years, the agency erroneously concluded that there was an inadequate supply of renewable fuel to justify a waiver of the levels established by Congress,” said the petitioners in the statement, noting they also plan to point out other fundamental flaws and inconsistencies in the government’s rule.
In addition, the petitioners said they look forward to presenting their arguments to the court of appeals to provide clarity and certainty to market participants concerning the requirements of the statute.
The EPA released its final rule setting the 2014, 2015 and 2016 RFS RVOs, along with the 2017 RVO for biomass-based diesel on Nov. 30. Groups representing the biofuels industry expressed mixed reactions following the release of the rulemaking. While the rule does make progress in piercing the blend wall, many criticized the EPA’s interpretation of RFS statute as allowing for “distribution waivers,” which is one issue targeted by the petition for review.
Read the original story here : Biofuel, Ag Group Ask Court To Review EPA's Recent RFS Rule
January 10, 2016
By Jose A. DelReal
OTTUMWA, IOWA – GOP presidential candidate Donald Trump is escalating his criticism of rival Sen. Ted Cruz in Iowa, painting him as a political follower beholden to pro-oil special interests and the donor class.
Trump's strategy: to raise further questions about Cruz's stance on ethanol — an important industry in the Hawkeye State — in the final weeks before the Feb. 1 caucuses. Cruz has faced renewed scrutiny over his opposition to the 2005 Renewable Fuel Standard, which requires gasoline to be blended with amounts of corn ethanol and is set to expire in 2022.
"As you know, my primary opponent in Iowa — only in Iowa, because Ted actually isn't doing very well in New Hampshire, but in Iowa he's doing well — was totally opposed to ethanol and the ethanol industry because he's with the oil industry. He's from Texas, I guess that makes sense," Trump said Saturday at a rally in Ottumwa.
His criticism comes amid a growing battle between the two candidates for the top spot in polls of Iowa voters. A Fox News survey of Iowa voters had Cruz leading Trump among likely GOP caucusgorers, 27 percent to 23 percent.
While touting his own support for the industry, Trump said he believes Cruz's position on ethanol has undergone "a very big change." Cruz has softened his position in recent years, calling for legislation that would gradually phase out the ethanol blending requirement.
"He was getting clobbered and all of a sudden he said, 'Uh, oh, I'm for ethanol.' You can't do that. You can't do that. With three weeks to go, you're not allowed to do that. Nobody really believes it," Trump said.
Supporters and spectators waited outside of the Bridge View Center in Ottumwa — a small town in southern Iowa — where a harsh cold wind blew as they waited for a chance to hear one of Trump's notoriously raucous speeches. Though the crowd capacity in the auditorium was about 650, according to police, the overflow area held about 1,000.
Trump has a series of stops in Iowa planned for the next three weeks leading to the caucuses. This is a contrast to his previous campaigning in Iowa, where he has darted in for occasional rallies before huge crowds, relying on TV news coverage to reach Iowans.
Trump's rallies Saturday afternoon in Ottumwa and Clear Lake came after an 11-day absence from the state.
"Next couple of weeks, I'm going to be seeing you so much that you're going to be so sick of me," Trump said at the Surf Ballroom in Clear Lake.
Read the original story: Trump Accuses Cruz of Flip-Flopping on Ethanol
January 6, 2016
By Erin Voegele
Representatives of the ethanol industry are speaking out to criticize comments on the renewable fuel standard (RFS) made by American Petroleum Institute President and CEO Jack Gerard during a recent speech.
On Jan. 5, Gerard delivered the keynote address at API’s sixth annual State of American Energy event. During the speech, he called for the RFS to be repealed or significantly amended. “It is relic of our nation’s era of energy dependency that poses a direct threat to our nation’s economy, risks reversal of important environmental improvements and could raise energy costs for American consumers,” he said.
Renewable Fuels Association President and CEO Bob Dinneen has spoken out to reject Gerard’s claims. “I’m not sure what reality Jack is living in, but it is clear that he believes API’s actions and policies are making our nation more energy secure when nothing could be further from the truth,” Dinneen said. “Perhaps he has convinced himself that fracking will provide the answer to all of our nation’s energy needs. What Jack conveniently failed to mention is that as oil prices have crashed, so has the rig count. The number of active U.S. oil rigs has plunged 67 percent from its peak in 2014. Last week’s rig count was actually the lowest since May 2010, according to the oil field services firm Baker Hughes. If Jack spent time living in the real world, instead of his revisionist reality, he would find himself whistling past the graveyards of shuttered wells that have been abandoned in the bust that inevitably follows a temporary boom of an oil well.”
“Even though U.S. oil production has risen in recent years, U.S. refiners still import a substantial amount of crude oil,” Dinneen continued. “In 2015, U.S. refiners processed roughly 16 million barrels per day, while crude oil imports averaged about 7.3 million barrels per day. This means that roughly 45 percent of the oil processed by U.S refineries came from imports. And about one-third of our nation’s imports came from OPEC nations with Russia and Columbia also serving as major suppliers.”
“The fact is our nation needs domestically-produced clean burning renewable fuels now more than ever,” Dinneen said. “Ethanol plants strengthen communities, they do not abandon them. Ethanol jobs are as stable and renewable as the fuel itself. Jack needs to wrap his arms around the fact that the era of unconstrained energy consumption is the real relic, and no longer exists. Renewable energy resources like ethanol provide the only real hope of a more sustainable energy, environmental, and economic future.”
Growth Energy co-chair Tom Buis has also spoken out to criticize Gerard’s comments. “API’s ‘State of American Energy’ speech, brought to you by Big Oil, is nothing new,” he said “While oil companies talk about the future of energy in this country, they seem fixated on a finite resource and fail to acknowledge that renewable fuels play a critical role in meeting the nation’s growing energy needs.
“Year after year, API attempts to drive the narrative that the renewable fuel standard (RFS) must be reformed or repealed,” Buis said. “This argument is fundamentally flawed. The claims that renewable fuels will increase the cost of energy or that they are worse for the environment are simply ridiculous. Countless independent studies have shown that renewable fuels like ethanol help drive down the cost of fuel. Furthermore, when it comes environmental damage, no one has a worse record than oil companies. Their record of ecological disasters is extensive and deeply troubling.”
“They claim the RFS is a ‘relic’ that is no longer useful, but the fact is that the RFS has been a resounding success, doing exactly what it was intended to do when a bipartisan Congress passed it over a decade ago,” Buis continued. “The RFS is the most successful energy policy this nation has enacted in the last 40 years. Not only is it creating jobs, it is revitalizing rural economies, reducing harmful emissions, improving our environment and reducing our dangerous dependence on foreign oil and fossil fuel. Additionally, it is providing consumers with a choice at the pump.”
Iowa Renewable Fuels Association Executive Director Monte Shaw noted the API continues to defend its special tax preferences while attacking the RFS. “You can’t help but laugh when API wraps themselves in the banner of market competition while advocating just the opposite, “he said. “They’ve done that for so long you get the feeling they actually have started to believe their own false rhetoric.”
“Big Oil simply does not want consumers to have the choice of higher ethanol blends because oil can’t compete in a free market,” Shaw continued. “Ethanol blends are cheaper, cleaner, and higher octane. Ask the pioneering retailers who give their customers a choice and the picture is clear—consumers prefer cheaper, cleaner E15 and E85.”
“Despite API’s claims that its oil monopoly worldview is gaining political support, the facts on the ground are clear. First, the only vote in Congress to repeal the RFS failed by a 2 to 1 margin in the Senate Banking Committee,” Shaw said. “And here in Iowa, 12 out of the 14 candidates running for president have pledged to—at a minimum—support the Congressional RFS schedule through 2022 and to insist on a level playing field thereafter. Quite frankly, we are likely closer to the end of Big Oil’s Century of Subsidies than to API’s goal of repealing the RFS.”
Read the original story: Ethanol Industry Reacts to API Criticism of RFS
January 5, 2016
America’s Renewable Future recently released its final candidate report card. The report card places each presidential contender into a good or bad category based on their support for the federal renewable fuel standard (RFS). ARF will use the report card to let more than 50,000 pledged caucus-goers and Iowans know which candidates will protect the state’s economy or which will be job killers. The tactics used will be a combination of grassroots and paid efforts.
Sen. Ted Cruz and Sen. Rand Paul stand out as the bad candidates on the report card, while the rest of the candidates on both sides of the aisle are graded as good. The report card designates a “good” candidate as one who has demonstrated support for the RFS and Iowa farmers and a “bad” candidate as one who has stood against Iowa farmers and the RFS.
The organization has gone after Cruz prior to the release of the report card on statewide radio for his hypocrisy on support for oil subsidies. The efforts will resume after the holidays. In addition to paid media, ARF’s grassroots organization covers the state’s 99 counties with 17 field staffers who have organized over 1,000 events around the state. From test plot events and RV stops at biofuel plants and co-ops to county fairs and farmers’ markets. From our urban centers in Des Moines and Cedar Rapids to the smallest rural towns, ARF has been getting its message out to Iowans. A message that’s resonating with Iowa caucus-goers with 61 percent of republicans and 76 percent percent of democrats saying they support the RFS.
“Ted Cruz is dangerous to Iowa and thousands of Iowa jobs,” said Eric Branstad, ARF state director. “Our economy depends on a strong RFS and Iowans count on $5 billion in wages thanks to it, Ted Cruz wants to kill their jobs and we are going to make sure every Iowan knows that.”
Read the original story: ARF Releases Candidate Report Card on RFS Support
Dec 30, 2015
By Alan Bjerga
As Republican presidential candidate Ted Cruz prepares to launch a bus tour of Iowa next week, one influential state organization is working to ensure the U.S. senator from Texas isn't welcomed in the state's cornfields.
In its final candidate scorecard before Iowa kicks off the 2016 presidential race with its Feb. 1 caucuses, America's Renewable Future, an ethanol-advocacy group, reserved its harshest words for Cruz, describing the Republican who is leading Iowa's polls as a threat to the corn-based alternative fuel that has been a boon the state's economy.
“Ted Cruz is dangerous to Iowa and thousands of Iowa jobs,” Eric Branstad, the group's leader and the son of Iowa's Republican governor, Terry Branstad, said in a statement. Referring to the Renewable Fuels Standard, a federal mandate on the amount of ethanol required in gasoline, the statement continued: “Our economy depends on a strong RFS, and Iowans count on $5 billion in wages thanks to it. Ted Cruz wants to kill their jobs, and we are going to make sure every Iowan knows that.”
Cruz was one of only two candidates rated “bad” by the group. The other was U.S. Senator Rand Paul of Kentucky, who has said he considers federal support for biofuels a form of corporate welfare. A bad rating was given to candidates who “stood against Iowa farmers and the RFS.”
All other Republican candidates, and all three Democratic contenders, got a good rating. That went to those who “demonstrated consistent support for the RFS and Iowa farmers,” according to the group, which boasts 17 field staffers working throughout the state.
Cruz has been the beneficiary of significant campaign contributions from the oil and gas industry, which has opposed ethanol's expansion. He has co-sponsored legislation that would repeal the Renewable Fuels Standard, the bedrock of government support for the industry. Earlier this year, Cruz touted his stance on the issue as proof that he won't pander to those in early-voting states.
Government support for biofuels has declined in recent years, with tax credits and pro-industry tariffs allowed to lapse as the industry has expanded.
Still, Iowa corn farmers rely on the fuel more than ever to help them cope: farm profits this year are expected to be the lowest since 2002. The state's 43 ethanol plants produced just over 4 billion gallons this year, up slightly from 3.9 billion last year. That's a new record for the biggest U.S. biofuel-producing state, the Iowa Renewable Fuels Association said this week.
Earlier this month, the latest Bloomberg Politics/Des Moines Register poll showed that the RFS is supported by 61 percent of those planning to participate as Republicans in the Iowa caucuses.
Read the original story here : Iowa Ethanol Group Rolls Out The Un-Welcome Mat For Ted Cruz
December 29, 2015
By Iowa Renewable Fuels Association
The Iowa Renewable Fuels Association recently announced that Iowa’s 43 ethanol plants produced over 4 billion gallons during 2015, up slightly from 3.9 billion gallons in 2014. Iowa continues to be the number one ethanol producing state, and is estimated to account for roughly 27 percent of national ethanol production in 2015. The increase came from efficiency gains and debottlenecking at existing plants, as well as ethanol production from cellulosic feedstocks such as corn stover and corn kernel fiber.
“While Iowa took a modest step forward in production this year, we have the corn supplies to really expand ethanol production,” said IRFA Executive Director Monte Shaw. “What we don’t have is access to the market for higher ethanol blends. The USDA blender pump grant program will help move the needle forward in 2016 and we hope the EPA will get the RFS back on track when they propose the RFS levels for 2017. If we can crack the petroleum monopoly on fuel choice, it will benefit consumers, farmers and the environment.”
Iowa is the nation’s leader in renewable fuels production. Iowa has 43 ethanol refineries capable of producing 3.9 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.
Read the original story: Iowa Sets Ethanol Production Record at 4 Billion Gallons in 2015
December 28, 2015
By Convenience Store News
Just a few years ago, some convenience store retailers and consumers alike were hesitant to sell and purchase E15 fuel, respectively, due to misfueling concerns and allegations that the blend of 15-percent ethanol and 85-percent gasoline could cause damage to vehicle engines. Today, the thought process about E15 has clearly changed, according to a new consumer survey conducted by Carbonview Research, a sister company of Convenience Store News.
During the Convenience Store News 2015 Fuels and Tech Summit, held earlier this week, Randi Etzkin, manager of client research for Carbonview, shared the results of its survey of 942 fuel decisionmakers aged 18-64 in eight Midwest cities ripe with E15 expansion. The research revealed:
•55 percent of respondents want to find out more about E15;
•44 percent find E15 "appealing;"
•35 percent want to use E15 for their car; and
•34 percent said E15 is "believable."
Etzkin acknowledged that price (cited by 71 percent of respondents) is the biggest factor consumers use to determine whether to purchase E15. If E15 - which carries an 88 octane - was sold at the pump at the same price as traditional E10 petroleum, 38 percent of those surveyed said they would likely buy the alternative fuel.
If E15 is priced 5 cents less than E10, 49 percent said they would likely buy E15, while a 10-cent difference would entice 60 percent of consumers to purchase E15 over E10.
Consumers also said they would be more likely to be loyal to the gas station that sold them E15. Fifty-seven percent of respondents said they would likely use the same gas station for their next fillup.
"People familiar with E15 think it is appealing, intriguing and a quality product," Etzkin said during her presentation.
On the flip side, those who said they would not purchase E15 cited performance and interest/need as the biggest reasons for not doing so.
The Carbonview executive did stress that the best way to advance the growth of E15 is by retailers educating consumers about the alternative fuel in any way possible.
E15 is currently offered in 175 locations throughout 19 states. It is approved for use in cars manufactured in the model year 2001 and newer.
The Convenience Store News Fuels & Tech Summit took place Dec. 7-8 at the Palm Beach Marriott Singer Island Beach Resort & Spa in Riviera Beach. The event was sponsored by Growth Energy, Warren Rogers and ZipLine.
Read the original story: Study Shows Consumers, Fuel Retailers More Positive on Ethanol
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Renewable Fuels Association
December 21, 2015
An analysis of 2016 model year (MY) warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA) shows that auto manufacturers explicitly approve E15 (15 percent ethanol 85 percent gasoline) use in more than 70 percent of new vehicles. This is up from 2015, when just over 60 percent of MY 2015 automobiles were clearly approved for E15.
RFA’s analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA’s decision means it joins the other members of the “Detroit Three” (General Motors and Ford) in unequivocally allowing E15. Other key points from RFA’s analysis include:
GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles.
More than 45 percent of the vehicles sold in the United States this year have been produced by the Detroit Three, according to industry data.
Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.
When flex-fuel vehicles (FFVs) produced by Nissan and Mercedes-Benz are included, RFA estimates the percentage of MY 2016 automobiles explicitly approved by manufacturers to use E15 is even larger (FFVs are approved to use up to 85 percent ethanol blends).
With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest “hold-out” when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that “E-15 fuel will adversely affect the emission control devices and systems of the vehicle,” which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol “can cause paint damage.”
Hyundai, Kia, and Subaru also continue to exclude E15 from their fuel recommendations. Together, these three foreign automakers account for about 11 percent of U.S. auto sales. While Subaru recommends that gasoline used in its vehicles contain “no more than 10% ethanol,” it allows the use of gasoline containing 15% MTBE—a toxic substance banned in dozens of states because of groundwater pollution concerns.
Interestingly, BMW’s MINI Hardtop appears to allow the use of 25% ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25%, i.e., E10 or E25, may be used for refueling.”
“This analysis should open some eyes and finally lay to rest the ridiculous myth that automakers do not allow the use of E15 in their vehicles,” said RFA President and CEO Bob Dinneen. “In fact, 2016 will be the fifth year in a row in which some auto manufacturers have explicitly included E15 in owners’ manuals and warranty statements as an approved fuel. With each passing year, more and more vehicles sold in the U.S. carry the manufacturer’s unequivocal approval for E15; and with each passing year, the auto warranty misinformation campaign undertaken by AAA and Big Oil fades further into irrelevance.”
Dinneen also noted the utter hypocrisy of statements made by AAA and the oil industry that using E15 may void auto warranties. “Ironically, not a single automaker approves the use of 85 octane gasoline, and the Department of Energy (DOE) warns that using such fuel may void warranties,” he said. “Yet, 85 octane gasoline continues to be sold all across the Rocky Mountain region and refiners are fighting tooth and nail to keep this inferior gasoline in the marketplace.”
While automakers began approving the use of E15 in their vehicles in 2012, approximately 6 million miles’ worth of testing by DOE and the Environmental Protection Agency (EPA) shows that the use of E15 is safe in all vehicles built since 2001. E15 waivers issued by EPA in 2010 and 2011 effectively approve the use of E15 in all vehicles built since 2001; this means more than 85 percent of the total current U.S. vehicle fleet can safely and legally run on E15.
The RFA analysis can be found here.
Read the original story: RFA Analysis Shows Uptick in Number of Automakers Who Have Approved E15 for Use in New Vehicles
Claremont, Minnesota - Al-Corn Clean Fuel, a farmer-owned ethanol production cooperative, has announced plans for a modernization and expansion project at their ethanol facility in Claremont, MN.
The project will make Al-Corn Clean Fuel more profitable for members and allow the cooperative to modernize its grain facility, add rail capacity, lower its greenhouse gas score, and drive down the cost of production.
"I am very excited about new investment in agricultural processing facilities in southern Minnesota" said Senator Dan Sparks, Chairman of the Senate Jobs, Agriculture and Rural Development Committee. "I know the Claremont ethanol plant was one of the first plants built in Minnesota and has been a huge financial success. I congratulate the plant and wish it future success."
Representative Rod Hamilton, Chairman of the House Agriculture Finance Committee, added, "Agriculture is the backbone of Minnesota's economy, and the expansion of Al-Corn is a testament to the importance of corn growers to our state. Through more job opportunities as well as an increased demand for corn and ethanol, the modernization of this plant is welcome news for all of us who value agriculture in southern Minnesota."
With facilities expanding throughout the renewable fuels sector, margins continue to tighten. Those facilities that are expanding and reducing cost are primarily those that are newer, larger, and already more efficient in terms of operating costs. This puts tremendous pressure on older, smaller, less efficient plants.
The expansion and modernization project will make Al-Corn Clean Fuel more competitive, thereby allowing the member-owned cooperative to continue operating for the long term.
"This is a huge project for our area, and we are excited to see the growth and economic impact it will have" said Jennifer Libby, President and CEO of Owatonna Area Chamber of Commerce. "We are excited for our member company, Al-Corn Clean Fuel, and for all our local communities that will benefit as a result."
Senator David Senjem added "I am excited to learn of Al-Corn’s decision to expand and become one of Minnesota’s largest ethanol producers" said Senator David Senjem. "Expansion means more jobs, more markets, and more economic vitality for our area of the state".
"Al-Corn Clean Fuel is a valuable asset to the farmers and the general economy of my district" said Senator Vicki Jensen. "This expansion and modernization investment ensures we can stay competitive in the value added agricultural market ethanol has been to Minnesota."
Construction is scheduled to begin in 2016, with completion in late 2017.
December 21, 2015
By Chris Woodward
Voters in Iowa will choose their favorite presidential candidates in February, and while the economy and national security are big issues, Iowans also place importance on things like ethanol.
According to a new poll from the Des Moines Register, 77 percent of likely Iowa caucus-goers who identify as Democrats support the ethanol mandate, a 2007 law requiring increasing amounts of alternative fuels to be blended into gasoline. In addition, 61 percent of Republican caucus-goers support the ethanol mandate. Ethanol is an alternative fuel source made from corn and other plant materials.
Iowa just happens to be the nation's largest producer of corn and ethanol, which has big implications for presidential candidates from both parties. Regardless, Democrats and Republicans in recent years have expressed support for ethanol – and not just those in Iowa, but also on Capitol Hill and the campaign trail.
Bob Dinneen, president and CEO of the Renewable Fuels Association, contends that ethanol helps reduce the America's dependency on foreign oil.
"Ethanol is a stone-cold winner when it comes to the environment,” he says. “It is 30 percent to 40 percent better when compared to gasoline in terms of carbon emissions. It helps to address global climate change. But more than that, it is reducing tailpipe emissions that cause real health effects."
Dan Kish, senior vice president for policy at the Institute for Energy Research, says ethanol does have certain good qualities, and acknowledges that production has gotten more efficient with some of the leftover product being used to feed certain livestock. Still, Kish says he would rather see a free-market scenario with ethanol.
If it were such a great idea, this would happen naturally in a free market, in a free country - not by dictates coming from the government," he states.
The Des Moines Register poll did ask likely Iowa caucus-goers if they support tax deductions for oil and gas exploration and development. Of Republicans, 59 percent say yes, compared to 26 percent of Democrats. When asked about these matters in recent years, Kish told OneNewsNow that these "are the same tax breaks that normal businesses get for investment."
Meanwhile, Dinneen has dimissed concerns that ethanol is bad for some, if not many, engines. He also dismissed concerns by restaurant groups and some environmentalists that ethanol has a negative impact on food prices and the environment.
Read the original story: Ethanol Will Factor in Big for Both Parties in Iowa
Dec 21, 2015
By Robert Wright
The global media landscape these past few weeks has been dominated by coverage of world leaders meeting at Paris Climate Summit to agree on measures to address climate change. COP21 an excellent opportunity to reboot the debate about biofuels, and ethanol in particular, and begin a discussion on how to best capture their genuine ability to play a positive role in the fight against climate change.
Tackling climate change is one of the biggest challenges we face. Unless we take decisive action to reduce greenhouse gas (GHG) emissions, there is little hope of limiting damaging rises in global temperatures. Achieving the GHG reductions that are needed to stay below a 2-degree Celsius increase in global temperatures will require substantial emission reductions in the transport sector.
Today, global transport emissions have increased to 14 percent of the world’s GHG emissions and about a quarter of the total energy-related CO2 emissions. With the United Nation’s Intergovernmental Panel on Climate Change predicting transport emissions could double by 2050, the need for preventative policy measures by world leaders is clear and urgent.
It was therefore reassuring that 36 countries had, in their Intended Nationally Determined Contributions plans, highlighted biofuels use as a key component of their climate action policies. Sixty-four countries worldwide, including the European Union, U.S. and Brazil, already have policies mandating the use of biofuels, but more need to do so.
Decarbonizing global transport is a huge task, because it is more than 95 percent dependent on oil. We therefore need to find ways of making the existing vehicles, including planes and ships, and infrastructure cleaner. It will undoubtedly be a huge challenge but, according to the IPCC, transport’s growing emissions could be cut by 15 to 40 percent through “aggressive and sustained” policy measures, including reducing the carbon intensity of transport fuels by substituting oil-based products with biofuels. This can be achieved, and sustainably.
According to the International Energy Agency, by 2050, sustainably produced biofuels could provide 27 percent of the world’s total transport fuel and avoid around 2.1 billion metric tons of CO2 emissions per year, eventually providing 23 percnet of total emission reductions in the transport sector.
This is the emissions reduction potential of biofuels that needs to be realized. But the potential can only be realized if policy frameworks at national, regional and global level are stronger, more stable and more ambitious.
Ethanol has a vital role to play in global decarbonizing transport because it is the most used biofuel globally and can achieve GHG emissions reductions of between 40 to 90 percent compared to petrol. Because it can be blended with petrol, and used in existing petrol engines, it also allows us to decarbonize the current fleet without needing to replace existing vehicles and infrastructure. It is clean, affordable, and here today. I’m not saying that ethanol is a silver bullet, but it is one of the main technologies that can play an important role in decarbonizing transport.
Ethanol is already helping the world to reduce its carbon emissions. Just this week, the Global Renewable Fuels Alliance, in cooperation with (S&T)2 Consultants Inc., released a new report which found that, in 2014, the total GHG emission reductions from global ethanol use were 100 million metric tons—equivalent to the total national GHG emissions of Sweden and Norway combined. The report predicts that even under a conservative, business-as-usual scenario, the total GHG emission savings achieved from global ethanol use could rise to 155 million metric tons in 2030.
Along with their climate benefits, biofuels are a key part of the global agricultural complex, facilitating rural development and supporting food production, particularly in poorer regions. Our industry is a key driver of clean technology innovation and investment but we constantly recognize the need to innovate even further. One way we can do this is through investment in advanced biofuels, which are produced from wastes and residues.
Ethanol is just one of the technologies that will play an important role in the fight against climate change. But unlike other solutions, it is ready to use today—here and now—and at scale. With ethanol, we can make an immediate impact on reducing global transport emissions. So let’s make that impact.
Read the original story here : Reboot Global Debate On Biofuels
December 16, 2015
Press Release
The Port of Seattle, Alaska Airlines [NYSE:ALK] and Boeing [NYSE:BA] are partnering to move toward a significant environmental goal: powering all flights by all airlines at Seattle-Tacoma International Airport with sustainable aviation biofuel. Sea-Tac is the first U.S. airport to lay out a long-term roadmap to incorporate aviation biofuel into its infrastructure in a cost-effective, efficient manner.
At the Sea-Tac fuel farm today, executives for the port, Alaska Airlines, and Boeing signed a Memorandum of Understanding (MOU) to launch a $250,000 Biofuel Infrastructure Feasibility Study that will assess costs and infrastructure necessary to deliver a blend of aviation biofuel and conventional jet fuel to aircraft at Sea-Tac, a crucial step toward routine biofuel use in the future.
“As leaders in aviation biofuels, this will send a signal to airlines and biofuel producers that Sea-Tac Airport will be ready to integrate commercial-scale use of aviation biofuels,” said Port of Seattle Commissioner John Creighton. “Biofuel infrastructure will make Sea-Tac Airport an attractive option for any airline committing to use biofuel, and will assist in attracting biofuel producers to the region as part of a longer-term market development strategy.”
The partners’ longer-term plan is to incorporate significant quantities of biofuel into Sea-Tac’s fuel infrastructure, which is used by all 26 airlines and more than 380,000 flights annually at the airport. Sea-Tac is the 13th busiest airport in the U.S. and will serve over 42 million domestic and international passengers this year.
Joe Sprague, senior vice president of communications and external relations for Alaska Airlines, Sea-Tac’s largest carrier and leader of the airport’s fueling consortium, said the airline wants to incorporate biofuel into flight operations at one or more of its hubs by 2020, with Sea-Tac as a first choice for the Seattle-based airline.
“Biofuel offers the greatest way to further reduce our emissions,” said Sprague. “This study is a critical step in advancing our environmental goals and stimulating aviation biofuel production in the Pacific Northwest.”
The Port of Seattle will manage the $250,000 study as the biofuel roadmapping process and, as Sea-Tac Airport’s governing authority, would handle the engineering and integration of biofuel infrastructure on Port property such as the airport’s fuel farm. An RFP for the infrastructure study will be issued in the spring of 2016, and the study is expected to be completed by late 2016. Currently, aviation biofuels are not produced in Washington state and must be imported by truck, rail or barge.
Boeing, which partners globally to develop and commercialize sustainable aviation biofuel, is providing expertise about approaches to develop a regional biofuel supply chain to serve the airport, including fuel types, fuel producers, processing technologies and integration with airplanes.
“Sustainable aviation biofuel will play a critical role in reducing aviation’s carbon emissions over the long term,” said Sheila Remes, Boeing Commercial Airplanes vice president of Strategy. “Boeing, Washington state’s largest employer, is proud to work with our customer Alaska Airlines and the Port of Seattle to power every plane at Sea-Tac with a biofuel blend and lead the way for other airports to do the same.”
Approved “drop-in” aviation biofuel is blended directly with regular petroleum-based jet fuel and used in airplanes without any changes to the aircraft or engines. Using sustainably produced biofuel reduces lifecycle carbon dioxide emissions by 50 to 80 percent compared to conventional petroleum fuel, according to the U.S. Department of Energy. Since 2011, when biofuel was approved for commercial aviation, airlines have conducted more than 2,000 passenger flights with a blend of biofuel and conventional petroleum jet fuel.
The Port’s Century Agenda Goal is to reduce aircraft-related carbon emissions at Sea-Tac Airport by 25% by 2037. The key strategy to reduce these emissions is through aviation biofuel. Historically, the Port has been a leader in supporting research and development of aviation biofuels, and as models of other international airports and airlines using biofuel emerge, Sea-Tac is also developing a market-support role.
In the past five years, Alaska Airlines has become a leader in the pursuit of finding a sustainable supply of biofuels. In 2011, Alaska was the first airline to fly multiple flights using a 20 percent blend of sustainable aviation biofuel made from used cooking oil and waste animal fat.
In the next year, Alaska will partner with Gevo, Inc. to fly the first ever commercial flight on alcohol-to-jet fuel. In addition, as a partner in the Washington State University-led Northwest Advanced Renewable Alliance (NARA), Alaska plans to fly a demonstration flight next year using a new aviation biofuel made from forest-industry waste. Fuel for both demonstration flights must first be independently certified.
As part of Boeing’s commitment to protect the environment and support long-term sustainable growth for commercial aviation, the company partners globally with airlines, governments, research institutions, fuel companies and others to develop sustainable aviation biofuel. Boeing has active biofuel projects in the U.S., Australia, Brazil, Canada, China, Europe, Japan, the Middle East, South Africa and Southeast Asia. More information: www.boeing.com/environment
Read the original release: Port of Seattle Partners with Alaska Airlines and Boeing on Plan to Supply Sustainable Aviation Biofuel at Sea-Tac Airport
Dec 17, 2015
By John McCormick
Ted Cruz's position on a requirement that's key to corn-based ethanol runs counter to the views of a solid majority of those likely to attend Iowa's Republican presidential caucuses, the latest Bloomberg Politics/Des Moines Register Iowa Poll shows.
Cruz's position, which is drawing a sustained attack against him from a pro-ethanol group trying to influence the caucuses, could threaten his standing as the Republican front-runner in a state that's key to his potential path to the nomination. Iowa is the nation's top corn and ethanol producer.
"We have to look at all sorts of ways to extend our energy supply," said Gloria Filean, a Republican from Des Moines who supports the RFS and plans to attend the caucuses. "It's good for the country to have that extra resource."
The poll also exposes the parochial nature—and potential for hypocrisy—surrounding federal assistance programs.
While majorities of likely Republican caucus-goers favor help for ethanol and government-backed crop insurance, they're generally opposed to support for other agricultural products, such as peanuts, sugar and milk, that don't do much to benefit their own state.
Government-supported crop insurance is favored by 57 percent of likely Republican caucus-goers. Subsidies for peanuts, sugar and milk are opposed by 56 percent. The one exception to the home-state favoritism: oil and gas exploration. Among Iowa Republicans surveyed, 59 percent supported tax deductions for the fossil fuels that ethanol and other alternatives are vying to displace.
Support for certain government programs that assist Iowa comes even though Republicans often call for a much smaller federal government. Cruz defends his opposition to the RFS as a matter of consistency in that regard. He says he's trying to avoid having the federal government pick "winners and losers" in the energy sector.
Likely Democratic caucus participants are more supportive of government agriculture assistance across the board. Majorities back federal assistance for ethanol (77 percent), crop insurance (74 percent) and subsidies for peanuts, sugar and milk (52 percent). On tax deductions for oil and gas exploration, however, 69 percent of likely Democratic caucus-goers are opposed.
Cruz's opposition to the RFS has made him the prime target of America’s Renewable Future, a pro-ethanol group that is led by the son of Iowa Republican Governor Terry Branstad. The group is in the midst of a three-week advertising campaign critical of Cruz that's playing out on radio stations statewide, as well as through direct mail and digital ads.
“We want Iowans to know that, unlike what Ted Cruz would like to have them believe, he is a typical politician who will say one thing in Iowa and do another in Washington,” Eric Branstad, the group's state director, said in a statement this week as part of the release of a new ad critical of Cruz. “His entire career he’s been in the pocket of the oil industry and he will continue to stand up for it against Iowa farmers and the Renewable Fuel Standard.”
Catherine Frazier, a Cruz campaign spokeswoman, didn't respond to an e-mail seeking comment.
ARF, a non-profit, was formed to organize around the ethanol issue ahead of the caucuses. The group has 17 field staffers across the state, more than many of presidential campaigns, and is active in each of the state's 99 counties.
It also says it has pledges from more than 50,000 people to attend the caucuses, with slightly more than half of those being Republicans. That's a sizable group, considering roughly 122,000 attended the 2012 Republican caucuses.
In some ways, Cruz is an easy target because he comes from an oil-rich state and has been the beneficiary of significant campaign contributions from the oil and gas industry.
He also was a co-sponsor of legislation that would repeal the RFS. Earlier in the year, he touted his stance on the issue as proof that he won't pander to those in early-voting states.
His opposition to ethanol is being highlighted at a time when farmers are under pressure because of low corn and soybean prices triggered by what appears to be a record harvest this year and plentiful global supplies.
The Iowa Poll, conducted Dec. 7-10 by West Des Moines-based Selzer & Co., included 400 likely Republican caucus participants and 404 likely Democratic caucus participants. On the full sample, it has a margin of error of plus or minus 4.9 percentage points, although higher for subgroups.
Read the original story here : Cruz Out Of Sync On Ethanol With Likely Republican Caucus-Goers In Iowa Poll
December 16, 2015
Communications Release
Last night congressional lawmakers reached an agreement on a $1.1 trillion spending bill that not only funds the government until 2016, but also contains a tax extenders package which includes several provisions of significant importance to the biofuels industry. The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Tax Credit. Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:
“By including these important tax incentives in the spending bill, congressional lawmakers sent a strong signal that they are interested in ensuring and encouraging the continued growth and innovation of our nation’s biofuels industry” said Dinneen. “These incentives are crucial for leveling the playing field in a tax code that is, unfortunately, overwhelmingly tilted toward the oil and gas industry. Oil companies have long benefited from billions in accelerated depreciation, intangible drilling expenses, and countless other tax breaks that are permanently imbedded in the tax code. Fundamental tax reform is critical to correct this imbalance.”
Lawmakers also included a repeal of Country of Origin Labeling (COOL) in the spending bill. COOL is a labeling law that requires retailers to notify their customers with information regarding the source of certain food and agricultural products. The World Trade Organization (WTO) had determined COOL violated trade agreements and recently ruled Canada and Mexico could seek up to $1 billion in retaliatory tariffs. Canada had previously threatened to place ethanol on a list of products that could be subject to retaliatory tariffs if the law was not repealed.
“The repeal of COOL removes a long-standing threat to the continued fair and free trade of ethanol with Canada. Its repeal will allow domestic producers to be able to trade ethanol in the global marketplace without fear of a retaliatory tariff from our largest ethanol export market,” said Dinneen.
Read the original story: RFA: Tax Incentives will Encourage Growth and Innovation in Nation’s Biofuels Industry
December 14, 2015
By Erin Voegele
The National Renewable Energy Laboratory has released its 2014 Data Book, showcasing increased use of renewable energy. According to the report, renewables accounted for approximately 11.1 percent of U.S. energy production in 2014. U.S. energy production totaled approximately 87 quadrillion Btu (quad) in 2014, with renewables accounting for 9.7 quad of that amount.
Natural gas accounted for 35 percent of U.S. energy production in 2014, with coal accounting for 23.3 percent. Crude oil accounted for 21 percent and nuclear accounted for 9.6 percent.
Biomass accounted for 5.6 percent of energy projection followed by hydropower at 2.8 percent, wind at 2 percent, solar at 0.5 percent and geothermal at 0.3 percent.
U.S. energy consumption reached 98.3 quad last year, with 35.4 percent of that volume coming from petroleum, 28 percent from natural gas, 18.2 percent from coal, 8.5 percent from nuclear and 9.8 percent from renewables. Biomass accounted for 4.9 percent, followed by 2.5 percent for hydropower, 1.8 percent from wind, 0.4 percent from solar, and 0.2 percent from geothermal.
Regarding ethanol, the report indicates U.S. production increased by nearly 7.6 percent in 2014, reaching 14.3 billion gallons. The increase was experienced despite sharp ethanol and gasoline price decreases. In comparison, only 1.622 billion gallons of ethanol was produced in 2000.
Last year, the U.S. produced an estimated 58 percent of the world’s ethanol. Brazil produced 25 percent, while the European Union produced 6 percent, China produced 3 percent and Canada produced 2 percent. On a global basis, ethanol production has increased from 10.77 billion gallons in 2004 to 24.57 billion gallons last year.
Of the 19,282 alternatively fueling stations in the U.S., NREL reports 15 percent supply E85. Approximately 57 percent supply electricity, while 15 supply propane, 8 percent supply compressed natural gas, 4 percent supply B20, 0.6 percent supply liquefied natural gas, and 0.3 percent supply hydrogen.
Iowa is the top state for ethanol production, with 3.99 billion gallons of capacity, followed by Nebraska with 1.99 billion gallons, Illinois with 1.43 billion gallons, Minnesota with 1.13 billion gallons and Indiana with 1.05 billion gallons.
The report also addresses biodiesel, reporting that the U.S. led the world in biodiesel production last year, followed by Germany, Brazil, Argentina, France and Indonesia. Globally, biodiesel production grew from 555 million gallons in 2004 to 7.85 billion gallons in 2014.
In the U.S., biodiesel production reached 1.8 billion gallons in 2013, falling to 1.75 billion gallons last year. In 2001, the U.S. produced only 5 million gallons of biodiesel.
A full copy of the report is available on NREL’s website.
Read the original story: NREL's 2014 Data Book Features Ethanol Statistics