In the News

ENERGY.AGWIRED.COM

August 9, 2016

By Joanna Schroeder

The ethanol industry packed the room for the opening night reception of the 20th annual American Coalition for Ethanol (ACE) Conference in Minneapolis, Minnesota where Minnesota Bio-Fuels Association Executive Director Timothy Rudnicki talked about the booming ethanol industry in his state.

“Within the last year and a half, we’ve seen more E15 stations become available, and that means more fuel choice for consumers,” said Rudnicki. “What we’ve found for the most part is when consumers have a choice between a clean, green renewable fuel versus petroleum they will take the renewable fuel.”

Rudnicki says because education is so important, they have developed new communications tools, such as a biofuel station locator app. “We’ve also implemented some direct consumer campaigns using social media tools to alert consumers to where retailers are having special events to promote E15 and higher blends, but more importantly, to give consumers the confidence in knowing what they’re buying is good for their engines, the environment, and the economy – and for the most part, ten cents less per gallon on E15 compared to regular,” said Rudnicki.

Read the original story and listen to the interview: #ACE2016 Hears about Booming Minnesota #Ethanol Industry

Motortrend

Aug 8, 2016

By Kelly Pleskot

Nissan e Bio Fuel Cell Prototype Vehicle 014

Photo credit : Nissan Motor

Just in time for the Olympic Games, Nissan is testing a special type of fuel-cell vehicle on the streets of Brazil. The model, based off the NV200 van, runs completely off bio-ethanol and offers a driving range of more than 372 miles. 

It doesn't work like other fuel cells which have a built-in tank for storing hydrogen. Instead, the Nissan e-Bio Fuel Cell uses bio-ethanol pumped into the vehicle to generate electricity through a solid-oxide fuel cell. 

The model generates electricity by transforming bio-ethanol into hydrogen through an electrochemical reaction from a reformer and atmospheric oxygen. The electricity generated in this process powers the vehicle. Reforming ethanol into hydrogen produces some carbon dioxide, although the same is true for the way other fuel cells works. But Nissan says the process of growing plants used to produce the bio-ethanol cancels out the effects of the emissions. Bio-ethanol, mainly sourced from sugarcane and corn, is widely available in North and South America, which Nissan says is another major benefit to this fuel source. 

"The e-Bio Fuel-Cell offers eco-friendly transportation and creates opportunities for regional energy production...all the while supporting the existing infrastructure," Nissan president and CEO Carlos Ghosn said in a statement.

The Nissan e-Bio Fuel-Cell offers a 30-liter tank for ethanol and a 24-kilowatt-hour battery. Given the fact that it's just a prototype for now, its specifications are subject to change should Nissan bring it to market. Nissan says the e-Bio Fuel-Cell is the first vehicle in the world to use a solid-oxide fuel cell. Solid-oxide fuel cells use a solid, ceramic electrolyte rather than a liquid electrolyte, and Nissan says it's highly efficient. 

Read the original story here : Nissan Debuts Fuel-Cell Prototype Powered By Bio-Ethanol

Ethanol Producer Magazine

Aug 3, 2016

By Erin Voegele

On Aug. 1, Bob Dinneen, president and CEO of the Renewable Fuels Association, asked the U.S. EPA and U.S. Commodity Futures Trading Commission to investigate potential manipulation in the renewable identification number (RIN) market. 

In a letter issued to CFTC Chairman Timothy Massad and EPA Administrator Gina McCarthy, Dineen expressed concern over recent irregular activity and volativity in the market for conventional RIN credits under the Renewable Fuel Standard (RFS) and encouraged the two agencies to "closely examine recent events in the RIN market to determine whether certain parties may be exerting undue influence on prices or otherwise engaging in manipulative practices." Earlier this year, the CFTC and EPA entered a memorandum of understanding to cooperate on coordinate on topics related to the implmentation of the RFS and RIN market.

Dineen stressed that "at a time when EPA is reviewing public comments on its proposed rule for the 2017 RFS volume requirements and considerting whether changes are warranted, it is especially important that the agency and affected stakeholders have a proper understanding of what is truly driving RIN prices."

In his letter Dinneen recalls that RIN prices artifically spiked to record levels in July 2013, providing opponents to the RFS with "politically expedient fodder for their campaign to repeal or reform the program." Dinneen said the ethanol industry is concerned that opponents of the RFS are similarly using the recent RIN spike to bolster efforts to change or eliminate the program.

According to Dinneen, RIN prices have risen nearly 30 percent since the EPA released its proposed 2017 RFS rule on May 18. RIN prices averged 74 cents on May 17, increasing to 79 cents on May 18, but falling to 76 cents by May 25. "The initial RIN price response suggested that the 2017 volumes proposed by EPA generally matched market expectations," wrote Dinneen in the letter. "The RIN market's lack of response to the proposal also indicated that participants broadly understood that the proposed volume requirements would not result in a drawdown of RIN stocks."

RIN prices, however, began rising rapidly in early June, hitting 98 cents on July 13. Dinneen notes that while several theories have been advanced, the real reason behind the increase remains unclear. He also stressed that basic market fundamentals suggest RIN prices should have remained stable or dropped following the release of the 2017 RFS proposed rule. He cites record 2015 ethanol production, the fact that RIN generation for 2016 is expected to outpace 2016 requirements, and strong evidence that 2017 requirements can be met without drawing down RIN inventories.

"Given the evidence of ample RIN supplies, the recent spike in RIN prices appears contributed and driven by something other than basic supply-demand fundamentals," Dinneen wrote. "Indeed, the spike raises renewed questions about the potential manipulation of the market by entities who may believe the specter of higher RIN prices supports their political efforts to repeal or reform the RFS."

Read the original story here: RFA asks EPA, CFTC To examine possible manipulation of RIN market

Left Lane News

August 4, 2016

By Justin King

As promised, Nissan's solid-oxide fuel-cell (SOFC) technology has progressed from the laboratory to a prototype vehicle.

The company has modified a e-NV200 van to run on bio-ethanol electric power, demonstrating a unique fuel-cell system that conveniently avoids the need to store or refuel high-pressure hydrogen.

The SOFC powertrain still requires hydrogen and oxygen to generate electricity, but the vehicle integrates a miniaturized chemical processing system to extract hydrogen locally while underway. A 30-liter tank holds ethanol or an ethanol-water blend.

"Due to the easy availability of ethanol and low combustibility of ethanol-blended water, the system is not heavily dependent or restricted by the existing charging infrastructure, making it easy to introduce to the market," the company said in a statement. "In the future, people may only need to stop by small retail stores to buy fuel off the shelf."

The prototype van is said to achieve an estimated driving range of around 373 miles before requiring an ethanol fill-up. The hydrogen extraction system and fuel-cell stack can produce up to 5kW of power, diverted to a 24-kWh battery.

Nissan suggests the technology could be commercialized by the end of the decade.

Read the original story: Nissan Pushes Forward With Ethanol-Based Fuel Cell Development

Milwauke Journal Sentinel

July 26, 2016

By Jim Wessing

Sens. Lindsey Graham (R-S.C.) and Elizabeth Warren (D-Mass.) don’t agree on much — but then again, U.S. senators from different parties rarely seem to agree on anything these days.

That’s why it was encouraging to see democracy at work, when leaders from across the political spectrum recognized the importance of the Renewable Fuel Standard, and decided to work across the aisle to make the program a success. That’s exactly what happened last month among 39 bipartisan champions of the RFS — including Tammy Baldwin (D-Wis.) — who sent a joint letter to the Environmental Protection Agency urging the administration to stay true to the goals of America’s best renewable energy policy.

In the letter, lawmakers from Connecticut to Hawaii made a simple request to the EPA: follow the law. Since 2005, the RFS has required oil companies to offer consumers renewable fuel blends at the gas pump. As a result, 97% of the fuel in every tank contains some amount of ethanol or other biofuel, grown right here in the United States. That renewable share is meant to grow, weaning America off foreign oil, while keeping the air clean and supporting a flourishing homegrown energy sector to replace exporters in the Middle East.

The strategy has been a clear success. Thanks to the RFS, growth in the biofuels sector now reverberates throughout our economy. America’s ethanol industry supports 28,000 manufacturing jobs across the United States, and many of those jobs are among manufacturers of equipment farmers use to grow, maintain and harvest feedstocks for ethanol production.

It also turns out that ethanol is the least expensive way to boost the octane in fuel, allowing for more efficient engine performance and eliminating the need for the kind of poisonous additives that refiners used in the past, such as MTBE and lead.

Fortunately, our senators seem to see the advantages of not relying on oil from the Middle East, if for different reasons. Some like that it attracts investments that would otherwise go to China or Brazil and that it gives America greater leverage against petroleum ministers in Russia and Iran. They also like that it supports American jobs and saves consumers anywhere from 50 cents to $1 per gallon during periods of high oil prices.

On the other side of the political spectrum, the RFS is part of the green energy revolution. Biofuels are helping to decarbonize America’s transportation sector and clear the air of smog, particulates and ozone. The average corn-based ethanol slashes greenhouse gas emissions by 34% compared to gasoline, while some of the newer cellulosic biofuels are essentially carbon neutral, according to Department of Energy-sponsored research.

Whatever their motivations, these senators demonstrated that good policy doesn’t always have to fall prey to partisan power struggles. The question now is whether the EPA is listening. Earlier this year, the agency proposed cutting 2017 conventional biofuel targets by 200 million gallons. The proposal is still under review, and with the end of an official comment period this week, regulators have until Nov. 30 to issue a final rule.

The choice policymakers make now will determine how painful the next spike in gasoline prices will be. When that happens, it’ll be too late for new oil drills or fresh windmills to protect our economy, but those who reached across the aisle to support America’s most successful green energy program will deserve our thanks for thinking ahead.

That’s good news for both consumers and the manufacturers across America who support thousands of jobs thanks to the RFS.

Jim Wessing is president of the Kondex Corp., an equipment manufacturer in Lomira.

Read the original story: Jim Wessing: EPA Should Maintain Renewable Fuel Standard

Biofuels Digest

July 29, 2016

By Nathan Vander Griend

The United States Environmental Protection Agency’s (EPA’s) mission is to protect human health and the environment. They are charged with delivering on that mission by using the best scientific information available. We can all agree that is an important mission, but have they written off ethanol as helping them achieve that mission?

To understand this issues it is first important to understand what is in your vehicle’s gas tank. When you pull up to most retail fuel pumps you commonly see unleaded, super-unleaded or premium, which almost always contain at least 10% ethanol blended into each gallon even though it isn’t always labeled as “contains up to 10% ethanol.” Depending on where you are at you may even see an option of E85 or 85% ethanol. No matter what your selection however all you know is it is gasoline and can contain a percentage of a non-petroleum fuel molecule called ethanol. But if 10% up to 85% of the gallons you are purchasing is a single ethanol molecule, what makes up the balance of the gallon? Remember, gasoline is not a molecule. Gasoline contains hundreds of molecules derived from petroleum. Some are ok, but some are highly toxic carcinogens that can lead to real health issues and negative environmental impacts.

Although it is scary to think that there are toxic carcinogens in your gas tank that are subsequently released out of your tailpipe and into the air we breathe, you should be able to breathe easy as there are standards in place for minimizing Mobile Source-Related Air Toxics (MSATs) and they can be found in Section 202(L)(2) of the Clean Air Act. In fact, in the Clean Air Act it states the Administrator shall, from time to time revise regulations using reasonable requirements to control hazardous air pollutants from motor vehicles and motor vehicle fuels to reflect the greatest degree of emission reduction achievable.

With the EPA’s mission being so clearly stated and a law in place that requires the reduction of MSATs, why has the EPA not enforced this law that would lead to the growth of ethanol, a cleaner burning, more sustainable and more economical fuel? Perhaps even worse than their inaction is their action in creating new, unnecessary roadblocks to further hinder the growth of ethanol in the fuel supply.

Reid Vapor Pressure

The first roadblock is the Reid Vapor Pressure (RVP) standard which requires the EPA to limit evaporative emissions of gasoline from June 1 through September 15 due to the increase in evaporation rates in warmer temperatures. The higher the RVP of a fuel, the worse its emission are. The maximum RVP of gasoline ranges from 7 to 9 psi, whereas the RVP of pure ethanol is 2. With the majority of fuel used in the U.S. today being a 10% ethanol blend or E10 the RVP is approximately 10 psi. In 1990 Congress amended the Clean Air Act to allow gasoline with 10% ethanol or E10 a “one pound waiver” of EPA’s evaporative emission limit. In other words, Congress gave the EPA the authority to allow the use of 10% ethanol or E10 during June 1 through September 15. In 2011 the EPA approved the use of 15% ethanol or E15 blends but did not extend the “one pound waiver” even though a 15% ethanol blend or E15 has a lower RVP. This single issue blocks the majority of the market from using ethanol blends beyond 10% or E10 for 4.5 months of the year.

Motor Vehicle Emissions Simulator

The next roadblock is the Motor Vehicle Emissions Simulator 2014 (MOVES2014) Model which was populated by the EPAct/V2/E-89 Fuel Effects Study. The final product, the MOVES2014 Model, is only as good as the information that goes into it, and the information that it is populated with from the EPAct/V2/E-89 Fuel Effects Study is engineered to create a roadblock for increasing ethanol usage. The model tells us that when you add more ethanol to gasoline, emissions will actually increase. Ethanol is 200 proof alcohol. In fact, some ethanol production facilities actually make a further purified product that ends up as beverage grade alcohol, whereas gasoline is considered toxic and can cause major health issues or death if breathed in or swallowed. The only way that it is possible for ethanol to cause toxic emissions to increase when added to gasoline is to engineer the source data, which is exactly what happened. When ethanol was added in the EPAct/V2/E-89 Fuel Effects Study, the base fuel was changed. In grade school science class, we learned that when you perform an experiment that you need constants and one variable to judge how each change to the experiment affects the outcome. Unfortunately, basic principles such as this were not used with this study. When ethanol was added, various other components in the fuel blend changed as well.

Corporate Average Fuel Economy

The next roadblock is the Corporate Average Fuel Economy (CAFE) regulations in the United States that first enacted by the U.S. Congress in 1975, in the wake of the Arab Oil Embargo, to improve the average fuel economy of cars and light trucks (trucks, vans and sport utility vehicles) produced for sale in the United States. Flexible Fuel Vehicles (FFVs) or vehicles that can run on either regular gasoline or up to an 85% ethanol blend or E85 received a credit under the CAFE regulations for their ability to be powered by a renewable energy source. In 2012 the EPA decided to phase out FFV credits due to higher ethanol blends not being readily available nationwide for use in the FFVs. Currently auto manufacturers are positioned to cease producing FFVs as a result of the phasing out of FFV credits in 2019. Without FFVs on the road, there is no legal market for higher level ethanol blends beyond 15% ethanol or E15 for automotive use.

The R Factor

The next roadblock is R factor the EPA uses for ethanol. First off, R factor is defined as the sensitivity of the fuel economy result to changes in fuel energy content. When R equals 1.0, the fuel economy change exactly tracks the energy density difference between the fuels. If R is less than 1.0, the fuel economy change is smaller than the change in energy density. Auto manufacturers remain unfairly penalized by the EPA by holding ethanol’s R factor at 0.6 or 40% less energy content, even when in their own EPAct/V2/E-89 study the R factor averaged 0.82 to 0.86 and other studies and test programs would show a 0.93 to 0.96 R factor.

The last roadblock is the EPA’s test fuel certification protocols. They fail to use non-biased testing protocols when evaluating ethanol blends by not utilizing fuels for testing purposes that are actually commercially available for purchase. This gives the EPA the ability to discredit ethanol’s ability to reduce toxic carcinogens in the air.

When understanding the mission and understanding the science, it still just doesn’t add up. The inaction in enforcement of the Clean Air Act, and the construction of unnecessary and significant roadblocks to limit the growth of ethanol usage is not only disturbing, but is truly producing negative health and environmental impacts to the country.  The Renewable Fuel Standard (RFS) is set to fully managed by the EPA after 2022, and today it doesn’t seem like they are betting on ethanol.

Read the original story: Does the U.S. EPA Not Want Biofuels?

United States Department of Agriculture

July 25, 2016

News Release

WASHINGTON, July 25, 2016 – Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture (USDA) is seeking applications for funding to help support the development of advanced biofuels, renewable chemicals and biobased products.

"The bioeconomy is a catalyst for economic development in rural America, creating new jobs and providing new markets for farmers and ranchers," Vilsack said. "Investing in the businesses and technologies that support the production of biofuels and biobased products is not only good for farm incomes. The whole economy benefits from a more balanced, diversified and consumer-friendly energy portfolio, less dependence on foreign oil and reduced carbon emissions."

Funding is being provided through the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program, formerly known as the Biorefinery Assistance Program. Congress established the program in 2008 to encourage the development of biofuels that use renewable feedstocks. The 2014 Farm Bill expanded the program to include renewable chemicals and biobased product manufacturing. The program now provides loan guarantees of up to $250 million to develop, construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and biobased product manufacturing facilities.

USDA has provided $844 million in loan commitments to 10 businesses in the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program since the start of the Obama administration. Companies receiving these commitments are projected to produce 159 million gallons of advanced biofuels.

In 2011, under this program, USDA provided Sapphire Energy a $54.5 million loan guarantee to build a refined algal oil commercial facility. Sapphire's "Green Crude Farm" in Columbus, N.M., is an example of how USDA funding and partnerships with the private sector are helping to support the development of biorefineries.

The plant opened in May 2012 and is producing renewable algal oil that can be further refined to replace petroleum-derived diesel and jet fuel. According to the company, more than 600 jobs were created during the first phase of construction at the facility and 30 full-time employees currently operate the plant. After Sapphire received additional equity from private investors, it repaid the remaining balance on its USDA-backed loan in 2013.

USDA is helping to develop the bioeconomy, which has the potential to spur unprecedented growth in the rural economy by creating opportunities for the production, distribution and sale of biobased products and fuels. For example, USDA has partnered with the U.S. Department of Energy and the Navy to create advanced drop-in biofuels that will power both the Department of Defense and private-sector transportation throughout America. Over the course of this Administration, USDA has invested $332 million to accelerate research on renewable energy ranging from genomic research on bioenergy feedstock crops, to development of biofuel conversion processes and cost/benefit estimates of renewable energy production. For more information on how renewable energy factors into USDA's work to reduce greenhouse gases, visit the latest chapter of USDA's Medium entry, How Food and Forestry Are Adapting to a Changing ClimateThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website..

The Department has also taken steps to support biobased product manufacturing that promises to create new jobs across rural America – including adding new categories of qualified biobased products for Federal procurement and establishing reporting by Federal contractors of biobased product purchases. The more than 2,200 products that have received certification to display the USDA Certified Biobased Product label are creating and increasing consumer and commercial awareness about a material's biobased content as one measure of its environmental footprint. A 2015 USDA study of the bioeconomy found that the biobased products industry generates $369 billion and 4 million jobs each year for our economy. Biobased products industries directly employ approximately 1.5 million people, while an additional 2.5 million jobs are supported in other sectors.

For this announcement, USDA will seek applications in two cycles. Applications for the first funding cycle are due October 3, 2016. Applications for the second cycle are due April 3, 2017. For more information, see page 48377 of the July 25, 2016, Federal Register. Application materials can be found on USDA's Rural Development website.

In October 2015, Rural Development implemented a redesigned two-phase application process. This new process helps the Agency identify the projects that have made the most progress in the development stage and have the greatest capacity for implementation and loan closing. The first two application cycles under the new process yielded complete applications from projects producing biogas, biodiesel, cellulosic ethanol, biobased lubricants and oils, lignin cake and syrup, and fertilizers.

Eligible borrowers include individuals, corporations, federally-recognized tribes, units of state or local government, farm cooperatives and co-op organizations, associations of agricultural producers, national laboratories, institutions of higher education, rural electric cooperatives, public power entities – or a consortium of any of these borrower types. Entities that receive program financing must provide at least 20 percent of the funding for eligible project costs.

Since 2009, USDA Rural Development (@USDARDThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website.) has invested $11 billion to start or expand 103,000 rural businesses; helped 1.1 million rural residents buy homes; funded nearly 7,000 community facilities such as schools, public safety and health care facilities; financed 185,000 miles of electric transmission and distribution lines; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. For more information, visit www.usda.gov/results.

Release No. 0174.16
Contact:
Catherine Dugan (202) 720-0999

Read the original release: USDA Seeks Applications for Funding to Help Develop Advanced Biofuels and Biobased Products

EIN News

July 22, 2016

By Diane Somer

PENSACOLA, FL, USA, July 22, 2016 /EINPresswire.com/ -- Bobby Likis, automotive expert and host of nationally syndicated car-talk program “Bobby Likis Car Clinic,” shares the mic with Randy Doyal, Chief Executive Officer of Al-Corn Clean Fuel in Claremont, MN, and Chairman of the Board of the Renewable Fuels Association, on Saturday, July 23, 2016, at 10:41a ET.

This Saturday, Doyal will brief Car Clinic listeners and viewers on ethanol and its benefits to local and national economies, to the environment and to national security. He will share also how Minnesota’s initiative in the industry is serving as a blueprint for helping solve future energy & economic challenges, as well as tackle misinformation swirling about the ethanol industry, debunking some of the more outrageous myths. Likis and Doyal will speak to the Renewable Fuel Standard (RFS) and why consumers/voters should support the RFS.

Doyal, now well-steeped in ethanol production, was born in the industry as a “cooker” with Mountain Development Corporation, and over the past 30 years, has served on many industry-related boards, including Minnesota AgriGrowth Board, Minnesota Biofuels Association, Chairman of Renewable Products Marketing Group, Chairman of the Board for Guardian Energy LLC in Janesville, MN and on the Board of Guardian Energy Management.

Doyal reflects, “As a 30-year veteran of the ethanol industry, I have seen the benefits we have provided to consumers in our communities and around the world, providing the lowest-cost, highest octane source on the planet. Ethanol use cleans the air, boosts local economies and helps to reduce our dependence on petroleum. I look forward to making sure Bobby’s audience of fellow automotive consumers, voters and our policymakers are aware of ethanol’s numerous benefits and continue to support its use.”

Likis invites, “Drivers, consumers, voters: tune in to Car Clinic for Randy’s plain-speak about ethanol...then you make an informed decision.”

To view Doyal’s interview in its entirety, visit WatchBobbyLive.com on Saturday, July 23, at 10:41a ET

Read the original story: Automotive Expert & Car-Talk Host Bobby Likis Talks with Randy Doyal, Chief Executive Officer of Al-Corn Clean Fuel