In the News

Senator Chuck Grassley

July 23 2019

Press Release

Contrary to assertions by the EPA, the Energy Department confirmed in a letter to Senator Chuck Grassley (R-Iowa) that the EPA has issued so-called “economic hardship” exemptions under the Renewable Fuel Standard (RFS) to small refineries, often owned by billion-dollar oil companies, even when the Energy Department found that the refineries faced little or no actual “hardship.”

In a response to an April 10 letter from Grassley, Secretary of Energy Rick Perry outlined the role of the Energy Department in the issuance of these waivers and indicated EPA has on at least one occasion issued an exemption when the department recommended no exemption and has ignored recommendations to grant only partial exemptions in other cases. Perry also indicated that the department has not changed how these analyses are applied or scored from the prior administration. Full text of Perry’s letter to Grassley is available HERE.

The number of small refinery waivers issued by EPA has skyrocketed the last two years.

In his April letter, Grassley specifically sought clarity on whether the Energy Department had changed its criteria or methodology of how it makes recommendations to EPA for small refinery exemptions. He also requested information about how many instances EPA granted the exemptions without recommendation from the department.

“This confirms what we’ve suspected and has been reported by news media,” Grassley said. “President Trump delivered on E15, but EPA has been undermining the president’s commitment to Iowa, the Midwest and rural America. I hope the White House puts an end to these handouts to Big Oil that hurt American farmers.”

Grassley is a leader in the fight to maintain a strong Renewable Fuel Standard (RFS). He led efforts to put pressure on the EPA to stop issuing “hardship waivers” to large, highly profitable oil companies as well as make the waiver process more transparent and highlight the importance of the RFS to President Trump and his administration.

Read the original press release: Energy Department Says EPA Issued RFS Exemptions Against DOE Advice

Ethanol Producer Magazine

July 18, 2019

By Matt Thompson

A recently released report from the USDA Foreign Agricultural Services Global Agricultural Information Network says South Korea may soon revise its regulations to allow the use of ethanol-blended fuel. The report follows the 2019 Seoul Fuel Ethanol Conference, hosted by the U.S. Embassy Seoul’s Office of Agricultural Affairs, the U.S. Grains Council and the Korea Biofuels Forum.

“Despite acknowledged air quality issues in urban centers, Korea does not currently allow the use of ethanol as a transportation fuel,” the report says. “With growing public concern about air quality issue in the transportation sector, the growing use of ethanol in transportation fuel in neighboring countries, and Korea’s interest in diversifying energy sources, FAS Seoul is optimistic that Korea will soon move towards approval for some ethanol use in fuel.”

According to the report, the South Korean government recently studied the feasibility of using ethanol-blended fuels in its transport sector. The feasibility study is currently under review by the ministry of Trade, Industry and Energy “which will finalize a recommendation on whether to permit ethanol fuel blends in the near future,” the report says.

The conference, which was held at the end of April, included presentations from representatives of the U.S. Grains Council and Flint Hills Resources, as well as a panel discussion titled “The Necessity of Korea’s Fuel Ethanol Policy and Future Roadmap.” The 2019 conference was the largest since its inception four years ago.

Following the conference, a release from the U.S. Grains Council noted that South Korea imported over 56 million gallons of U.S. ethanol between September 2018 and February 2019. That ethanol is used only in the country’s beverage and industrial sectors; however, the Grains Council is also hopeful the transport sector will provide further export opportunities for U.S. ethanol.

Read FAS Seoul’s Wrap-Up Report for the 2019 Seoul Fuel Ethanol Conference here.

Read the original article: Report Shows Optimism for Fuel Ethanol Use in Korea

Renewable Fuels Association

July 19, 2019

By Ken Colombini

Two new academic studies released this week provide further evidence that grain-based ethanol is significantly reducing greenhouse gas emissions and call into question the reliability of recent “land use change” analyses based on flawed satellite imagery-based methodologies.

These studies add to a large body of existing literature that debunks falsities spread by well-funded opponents about the role ethanol plays in protecting the environment.

According to the Renewable Fuels Association, this new research will allow policymakers and regulators to focus on the fact that corn farmers and ethanol producers alike are making great strides forward in sustainability and efficiency.

“As the Environmental Protection Agency considers the GHG impacts of expanded ethanol consumption under the Renewable Fuel Standard, we urge them to strongly consider the latest science and data regarding ethanol’s tremendous carbon benefits,” said RFA President and CEO Geoff Cooper. “At the same time, we implore EPA to exercise great caution and prudence when considering the results of flawed land use change studies reliant on data from satellites that, frankly, can’t tell the difference between a pasture and a parking lot. The land use research relied upon by EPA for its Second Triennial Report to Congress was so flawed and erroneous that it simply cannot be used for regulatory decision-making, and we urge EPA not to make the same mistake as it considers future regulatory actions on the RFS.”

The first new study, conducted by the Laboratory for Applied Spatial Analysis at Southern Illinois University Edwardsville (SIUE-LASA), exposes fundamental flaws in satellite imagery-based research regarding land use change that was quoted in the EPA’s Second Triennial Report, released in 2018. SIUE-LASA’s review of the data sets and methodologies that were used in the prior research revealed some remarkable errors.

A series of papers by Tyler Lark, Holly Gibbs and Christopher Wright relied heavily on use of the U.S. Department of Agriculture’s Cropland Data Layer (CDL), which assigns land type categories using satellite imagery. Their research suggests there has been conversion of grassland and other “native” lands to cropland since the Renewable Fuel Standard was established. However, the CDL has shortcomings that render it poorly suited for this type of analysis, notably the inability to differentiate between grassland types (native prairie, Conservation Reserve Program, grass hay, grass pasture and fallow/idle grasslands), a problem USDA itself has recognized.

In one egregious example where the CDL failed, a body of water was misclassified as deciduous forest and grass pasture. Click here for the image example. This example is symptomatic of the errors associated with the CDL, underscoring why the research based on this data should not be used for regulatory decision-making.

Additionally, the research by Lark, Gibbs, and Wright (much of which was funded by the National Wildlife Federation) is prone to reflecting “false change,” in which a higher share of actual cropland is recognized in the newer, more-accurate CDL versions than in older, less-accurate versions, thus giving the appearance that cropland expanded.

For example, SIUE-LASA examined conditions in Iowa, since it is a leading producer of corn and ethanol and previous research asserted Iowa was an area with significant land use change. Using data from the USDA’s National Agricultural Statistics Service, SIUE showed that from 2008 to 2012 in Iowa there was a net increase of only 38,000 acres of cropland as opposed to 263,468 acres and 295,100 acres claimed in two satellite data-driven papers cited by the EPA in its 2018 report.

The land use research (“Critical Review of Supporting Literature on Land Use Change in the EPA’s Second Triennial Report to Congress”) was conducted for Renewable Fuels Association by Joshua Pritsolas and Dr. Randall Pearson of SIUE-LASA. In summary, the authors found “…there are major concerns regarding both the data and the methods that were used by the researchers [Lark, Gibbs, Wright], which call their findings into question.”

Click here for the full report.

The second new study, a worldwide meta-analysis funded in part by the Department of Energy and  USDA, determined that corn residue (“stover”) retained on fields—which is the common practice—results in the sequestration of approximately 0.41 metric ton of carbon per hectare per year  in the soil.  This implies not only that the carbon intensity of corn-based ethanol is significantly below current estimates by EPA, the California Air Resources Board, and others, but also that leaving more residue on the field can have a larger carbon benefit than significant removal and conversion of the residue into ethanol.

Based on this research, properly accounting for the soil carbon sequestration benefits of corn production would reduce the existing lifecycle “carbon intensity score” of corn ethanol by some 20-25 percent, meaning most dry mill corn ethanol produced today would result in a 50-65 percent GHG savings compared to gasoline.

The soil carbon sequestration research was conducted by a team of environmental and soil scientists from the Department of Energy’s Argonne National Laboratory, the U.S. Department of Agriculture’s Agricultural Research Service, South Dakota State University and the South Dakota School of Mines and Technology. They used 409 data points from 74 stover harvest experiments conducted around the world. The paper, titled “A global meta-analysis of soil organic carbon response to corn stover removal,” was recently published in GCB Bioenergy, an international journal. Click here to read it.

Read the orginal article: New University and Government Reports Set the Record Straight on Ethanol’s GHG Benefits

Ethanol Producer Magazine

July 10, 2019

By Erin Voegele

The International Renewable Energy Association recently released the sixth edition of it Renewable Energy and Jobs report, announcing the renewable energy sector employed at least 11 million people last year, directly and indirectly. The solar photovoltaics, bioenergy, hydro, and wind power industries were the biggest employers.

Bioenergy, which includes liquid biofuels, solid biomass and biogas, employed approximately 3.18 million people last year, up from 3.06 million in 2017 and 2.74 million in 2016.

Approximately 2.063 million people were employed by the liquid biofuels industry in 2018, with 787,000 employed in solid biomass and 334,000 employed in biogas.

According to IRENA, worldwide biofuels employment is estimated at 2 million, up 6 percent from 2017. Many of the jobs in the sector are generated in planting and harvesting of feedstock. Fuel-processing facilities tend to offer fewer jobs than feedstock supply. However, those jobs typically required higher technical skills and offer better pay.

With 832,000 jobs, Brazil has the world’s largest workforce in liquid biofuels. In the U.S., record production in 2018 drove up liquid biofuels employment to 311,000 jobs. Biofuel employment in the EU reached approximately 208,000 jobs in 2017, which is the most recent year for which data is available. Brazil, the U.S. Indonesia, Columbia and Thailand are the top five countries for employment in liquid biofuels.

Heat and electricity derived from solid biomass accounted for approximately 387,000 jobs in the EU in 2017.  There were approximately 186,000 jobs attributed to solid biomass in China, with 79,000 in the U.S. and 58,000 in India.

For biogas, approximately 145,000 of the estimated 334,000 jobs were in China, with 85,000 in India, 67,000 in the EU and 7,000 in the U.S.

A full copy of the report can be downloaded from the IRENA website.

Read the original article: IRENA: Bioenergy Employed 3.18 Million People Globally in 2018

Biofuels International

July 15, 2019

US airline Delta has flown its first carbon-neutral delivery flight, using biofuels and carbon offsets, as the airline continues towards its goal of a 50% carbon emission reduction by 2050.

Delta has teamed up with biofuel supplier Air BP for the provision of biofuels for an initial 20 delivery flights from the Airbus final assembly line in Mobile, Alabama, US.

The Airbus aircraft are manufactured and refined using sustainable sources and processes, the airline added.

“Today’s carbon-neutral delivery flight is a milestone on Delta’s sustainability journey as we work to cut carbon emissions in half by 2050,” said Alison Lathrop, Delta’s managing director – global environment, sustainability and compliance. “We are excited to partner with Air BP and Airbus to power these delivery flights with biofuels and carbon offsets, and will explore opportunities to bring this level of sustainability to all delivery flights going forward.”

Delta has reduced its consumption of traditional jet fuel since 2005, resulting in an 11% decrease in emissions.

The airline was the first and only US airline to voluntarily cap carbon emissions at 2012 levels by purchasing carbon offsets ahead of the International Civil Aviation Organisation’s CORSIA implementation, which caps international emissions from aviation at 2019/2020 levels.

“Airbus is committed to being part of the solution for meeting aviation’s global CO2 emissions reduction targets,” added Simone Rauer, head of aircraft operations for environmental affairs at Airbus. “Contributing to a lasting decrease of our industry’s carbon footprint is key to ensuring a sustainable future for aviation.”

“We are proud to help Delta achieve its sustainability goals for the maiden voyages of their new Airbus aircraft,” said Jon Platt, CEO of Air BP. “Air BP is supplying sustainable aviation fuel, produced by Neste, for 20 delivery flights, and through the BP Target Neutral program we are offsetting the residual carbon emissions of each delivery flight. This is another example of BP’s commitment to advancing the energy transition and helping our customers meet their lower carbon goals. We hope this project inspires others to follow suit.”

Read the original article: Delta’s First Carbon Neutral Flight Powered by Air BP-Supplied Biofuel

Phibro Ethanol Performance Group

Press Release

July 10, 2019

Phibro Animal Health Corporation’s Ethanol Performance Group has again expanded their portfolio of customer solutions by unveiling new yeast products to address the needs of a changing market.

“Ethanol production is a very efficient industry. The technology keeps improving and lately yeast has been driving those improvements,” said Michael Giambalvo, President, Phibro Ethanol Performance Group. “We understand fermentation, preventing and managing plant infections and the key role of yeast in biofuel production. Yeast has been at the core of Phibro’s businesses for decades.”

A longtime industry leader in antimicrobials, Phibro Ethanol Performance Group provides solutions for ethanol producers based on its core competencies of fermentation, infection management and co-products for animal feed. Products include processing aids, cleaning aids, corn oil recovery and now its proprietary yeast products. PhibroADY™ and FortiPhi™ yeast products represent the latest product offerings by Phibro Ethanol Performance Group.

PhibroADY was developed for ethanol production, using a specially selected Saccharomyces cerevisiae strain. PhibroADY demonstrates robust performance across a wide range of operating conditions. With high temperature tolerance, organic acid tolerance, and high gravity substrate tolerance, this yeast has an efficient performance characteristic allowing for higher ethanol production. PhibroADY has a fast fermentation kinetic and also demonstrates superior longevity, remaining viable late in fermentation.

FortiPhi, a specialized nutritional supplement for industrial yeast, is specifically designed for grain mash fermentations producing ethanol. FortiPhi contains premium organic and inorganic compounds intentionally chosen to help improve the fermentability of standard grain mashes. The inclusion of inactivated yeast culture, vitamins and essential minerals provide a balanced supplement to help support yeast growth and metabolism.

“In recent years, the market has shifted. Ethanol producers are more interested in GMO technologies because of the multiple benefits they provide. Producers have recognized the value in yeast that will express enzymes and contribute to higher yields,” said Jenny Forbes, Vice President, Products and Services, Phibro Ethanol Performance Group. Phibro is responding to this market need with an entirely new higher performance yeast due out later this year. Initial tests have proven promising for Phibro’s next generation genetically engineered yeast product that is under development. This next-gen yeast will enhance yeast robustness and performance, while reducing processing costs such as enzymes.

“We have been a leader in the ethanol production industry for many years, and we’ve been very fortunate to be able to grow with our customers,” said Giambalvo. “This is just the natural progression in providing more solutions to meet the needs of our customers. Phibro’s innovations in yeast will help the industry achieve higher productivity, higher efficiency and process optimization. If you’re not innovating, you fall behind.”

For more information on Phibro Ethanol Performance Group and the full suite of products, please visit EthanolPerformanceGroup.com.

Bloomberg

July 9, 2019

By Sabrina Valle

For 22 years, Toyota Motor Corp. has made hybrid cars that don’t require drivers to choose between running on gas or electricity. In October it will add a third option: ethanol.

The Japanese manufacturer will package its ultrapragmatic drivetrain in an all-new Corolla sedan that will be bolted together at its plant in Sao Paulo. Toyota is billing the vehicle as the cleanest hybrid ever made.

Ethanol has long been a popular fuel in Brazil, where it’s brewed fairly efficiently from fast-growing sugar cane. Because the plants process CO? as they grow, ethanol is considered a renewable fuel; burning a gallon of it releases only 10% to 20% as much carbon as burning a gallon of traditional gas, according to Unica, a sugar association.

“The goal is to make a car with zero carbon emission; that’s the industry’s race,” said Ricardo Bastos, Toyota’s head of government relations in Brazil. “With ethanol, we’re closer if you consider the whole cycle, well to wheel.”

The chimera car could prove to be a useful stopgap in an industry slowly transitioning to vehicles that exclusively plug in and run on batteries, particularly in countries committed to ethanol. Brazil has supported the fuel as a green alternative since the 1970s, and as a result it’s now available at all 40,000 of the country’s gas stations. Ethanol in Brazil is often cheaper than conventional fuel, depending on the price of sugar at any particular moment.

Electrified vehicles have made little headway in Brazil, in part because of anemic charging infrastructure and taxes of up to 120% on imports such as the Toyota Prius. Of the country’s 44 million cars and trucks, only 11,000 or so were electric as of the end of 2018.

These days, however, almost all new cars in Brazil can burn ethanol or gasoline. Last month, Brazilian policymakers further primed that market for the new Toyota, making tax concessions that will lower the price of hybrid vehicles by as much as 3% for cab drivers and fleet companies. With that sweetener, a hybrid electric vehicle that also burns ethanol could make up 10% of the fleet by 2025, according to some estimates.

Such a machine may also catch on abroad. Starting next year, Toyota plans to export its new ethanol-enabled Corolla to Argentina, Chile, Colombia, Paraguay, Peru and Uruguay. “Any country which already uses ethanol or wants to increase the usage of hybrids is a target,” Bastos said. “If Europe wants it, we have the technology ready.”

In the U.S. nearly all fuel contains a small amount of ethanol, typically up to 15%, according to a federal renewable fuel mandate last updated in 2007. A traditional internal combustion engine can be damaged by more concentrated ethanol, and it’s still tough to find a more refined version. Only 3,400 stations sell a blend of as much as 85% ethanol for purpose-built flex-fuel vehicles, and most of them are clustered in the country’s Corn Belt.

Meanwhile, ethanol has fueled a long-simmering debate. Scientists point out that it’s not as clean as it’s been made out to be, considering the energy required to grow the plants ethanol is derived from and to refine the end product. What’s more, ethanol typically emits more smog than conventional gas and produces fewer miles per gallon.

The hybrid Corolla will be able to run on any of the three fuels or two at the same time. Toyota will make the car with engines from Japan at its Sao Paulo plant, a factory that can churn out as many as 70,000 vehicles a year. The automaker has yet to release pricing or mileage-efficiency estimates for the car.

Read the original article: Toyota’s Brazilian Corolla Will Run on Pretty Much Whatever You Want

Reuters

July 5, 2019

By Humeyra Pamuk

The U.S. Environmental Protection Agency (EPA) on Friday proposed refiners increase the volume of biofuels blended into their annual fuel output but did not reallocate the waived amounts under the hardship program, drawing ire from powerful corn and biofuel groups as well as Republican senators.

The EPA is charged with setting biofuel blending requirements for the refining industry as part of the Renewable Fuel Standard (RFS), a more than decade-old regulation that is aimed at helping farmers and reducing U.S. dependence on oil. It also provides waivers to small refining facilities that can prove compliance would cause them financial harm.

RFS and the waiver program, known as the Small Refinery Exemption (SRE) program, have increasingly been at the forefront of a heated political debate between the influential corn and oil lobbies, leaving President Donald Trump struggling to find a balancing act between the two important constituencies as he eyes re-election next year.

The issue has also gained more importance with many 2020 Presidential hopefuls looking to secure support in key states such as Iowa, a major ethanol producing state.

Since Trump took office, the EPA has more than quadrupled the number of waivers it has granted, saving the oil industry hundreds of millions of dollars but enraging another key constituency - corn growers - who claim the move threatens demand for their products.

EPA on Friday said it has proposed increasing the volume of biofuels refiners must blend into their fuel annually to 20.04 billion gallons in 2020, up from 19.92 billion gallons in 2019. The proposed mandate included 15 billion gallons of conventional biofuels like ethanol, unchanged from 2019.

Reuters reported the proposed volumes ahead of the announcement in May, citing industry sources.

The EPA also proposed holding the biodiesel mandate at 2.43 billion gallons for 2021, unchanged from 2020. The agency sets biodiesel mandates a year in advance. Corn and ethanol producers have long urged the EPA to lift the figures to make up for the volumes waived under the small refinery hardship program.

The lack of it infuriated biofuel groups and Republican senators from corn state Iowa. “It’s unacceptable that EPA would set biofuel volumes below demand at a time when farmers, biofuels producers and agribusiness owners are forced to shed jobs and close plants,” influential Senator Chuck Grassley said.

“I urge President Trump to compel EPA to reverse course and keep his word to the forgotten Americans who have faithfully stood with him.”

American farmers have been among the most affected by Trump’s trade war with China, which once was a top export market for U.S. agricultural products - although the rural heartland has mostly remained loyal to him.

“EPA appears to be selling out to oil refiners — again — at the expense of rural America,” said Geoff Cooper, president and chief executive of the Renewable Fuels Association.

“Until the EPA reigns in the abuse of SREs (small refinery exemptions) and reallocates what has already been lost, billions of gallons of biofuel demand will be destroyed each year as SREs explode around our industry like fireworks above the Washington Monument on the 4th of July,” said Executive Director of the Iowa Renewable Fuels Association Monte Shaw.

Trump has also been increasingly annoyed with the waiver program, sources told Reuters, and ordered a review of it, after hearing from angry farmers during his Midwest tour last month.

The proposed mandate also includes 5.04 billion gallons of advanced biofuels, like those made from agricultural wastes, up from 4.92 billion in 2019. As part of the advanced biofuel proposal, the agency set mandates for cellulosic fuel at 540 million gallons.

The deadline for EPA to issue the final rule on blending requirements is Nov. 30.

Read the original article: U.S. EPA Proposes Hike in 2020 Biofuel Mandate But Waiver Volumes Draw Ire