In the News
January 4, 2017
By Erin Voegele
Sen. Chuck Grassley, R-Iowa, has announced plans to host a meeting on Jan. 5 with Scott Pruitt, President-elect Trump’s nominee to head the U.S. EPA, and senators from states with significant jobs and investments in biofuels.
In early December, Trump nominated Pruitt to serve as administrator of the EPA. The nomination is subject to confirmation by the U.S. Senate.
Pruitt currently serves as the attorney general of Oklahoma, a position he has held since 2010. Prior to his election as attorney general, Pruitt served eight years in the Oklahoma senate. His biography posted to the Oklahoma Office of Attorney General website states he is a “leading advocate against the EPA’s activist agenda.” Pruitt has been criticized by the environmental community for being a climate change denier and has fought implementation of the EPA’s Clean Power Plan.
According to Grassley’s office, confirmed attendees to the meeting include Sens. John Thune, R-S.D.; Joni Ernst, R-Iowa’ Mike Rounds, R-S.D.; Deb Fischer, R-Neb.; Roy Blunt, R-Mo.; and Pat Roberts, R-Kan. Grassley is expected to issue a statement after the meeting.
Read the original story: Grassley to Host Meeting with Pruitt, Midwest Senators
January 3, 2017
By Delayne D. Johnson
Refinery owner Carl Icahn has been pressing the incoming administration to turn its back on homegrown biofuels, like those produced here in Iowa. Normally, that wouldn’t matter much, because President-elect Donald Trump campaigned and won on the promise of supporting ethanol and other biofuels. Unfortunately, Icahn has just been named as President-elect Trump’s new special adviser on regulation, an unofficial position that shields Icahn from legal requirements designed to curtail conflicts of interests.
It’s a sad state of affairs that threatens to derail President-elect Trump’s core of support in America’s heartland and turn Midwestern senators against cabinet picks like Scott Pruitt, Trump’s nominee to oversee the Environmental Protection Agency. As someone who wants to see Trump succeed, my hope is that he’ll maintain a healthy skepticism about Icahn’s motives and keep the new administration focused on fulfilling its promise to revitalize rural economies, support agriculture and create jobs.
Step one will be for Pruitt to publicly reject the changes that Icahn is demanding to the Renewable Fuel Standard, America’s most successful domestic energy program for 11 years.
As currently structured, the RFS ensures that oil companies give biofuels a chance to compete at the pump, which creates competition and offers consumers more affordable fuel options. It does so by setting minimum targets for the volume of biofuels that refiners and importers must include in the fuel supply.
Refiners can meet their obligations by investing in renewable energy blending, and major players like Tesoro have called this the “rational, business-oriented” approach. But a handful of refiners allied with Icahn have elected to buy credits from other blenders, and now they are demanding a bailout from the EPA. Their plan would exempt select refineries and place new obligations onto fuel marketers and gas station owners.
The market for biofuels is strong. As a result, consumers have access to better fuel options at a lower price. Ethanol blends like E15 (15 percent ethanol) deliver more octane at a cost typically 10 to 15 cents less per gallon (saving consumers $15 to $22 billion annually) than standard E10. Mid-level blends, like E30, could save drivers twice as much. Even better, a new report from the Energy Department's Oak Ridge National Laboratory shows how increased octane in mid-level ethanol blends can boost mileage and acceleration.
These homegrown fuels also support hundreds of thousands of energy jobs across the country, including those at Quad County Corn Processors, where we produce up to 110,000 gallons of ethanol per day. And they reduce our reliance on nations like Iraq and Venezuela.
Rather than incentivize retailers to offer consumers lower cost fuels like E15, E30 and E85; Mr. Icahn’s plan would put those savings into his own pocket, stifle market growth for renewable energy and decimate rural America. With farm income declining for the third straight year and a massive surplus of grain threatening to stagnate rural growth, we can’t afford for the administration to go back on its promise to support the RFS.
Delayne D. Johnson is chief executive officer of Quad County Corn Processors in Galva.
Read the original story: Activist Investor Wrong to Attack Homegrown Biofuels
December 29, 2016
By Ann Bailey
Iowa Lt. Gov. Kim Reynolds has released to the public the Iowa Renewable Energy Plan, which establishes priorities and provides strategic guidance for Iowa’s energy future.
The plan was created to provide a “clear path to ensure Iowans have access to affordable, reliable clean energy, while recognizing energy’s strategic importance to the Iowa’s economy,” according to the plan’s executive summary.
“IRFA appreciates Lt. Gov. Reynold’s recognition of the role biofuels have played in powering Iowa’s economy,” Iowa Renewable Fuels Association said. “And we commend the Iowa Energy Plan for seeking to build on this foundation, as there is much more biofuels and biomass can do for Iowa in the future.”
Development of the comprehensive state energy plan began in 2015. Since then, six forums, attended by hundreds of Iowa residents, have been held to get input for the plan and 48 Iowa residents were members of working groups which helped identify strategies that could be important parts of Iowa’s energy future. The plan is made up of 15 objectives and 45 strategies which, together, propose a balanced approach to Iowa’s energy sector while emphasizing sustainable practices, statewide economic development and support the research and development required to keep the state on the cutting edge of innovation, the Iowa Energy Plan executive summary said.
One of the themes identified as key in the plan is alternative fuel vehicles. The plan notes that increasingly more stringent fuel economy standards have enhanced the need for auto makers to embrace diversification of transportation fuels and vehicles. Iowa, which has a plentiful supply of ethanol and biodiesel, has an opportunity to help the auto industry meet its fuel economy targets while increasing economic gain, the executive summary said. The executive summary notes that customers and businesses continue to benefit from expanded access to higher blends of ethanol and biodiesel at affordable prices and that diversification of transportation fuels results in energy security, economic advantages and environmental benefits.
Strategies that help grow Iowa’s biofuels industry will lead to higher diversification in available fuel sources for consumers and businesses and also result in more affordable distribution of the biofuels which will mean savings for customers and operators of fueling infrastructure. Continued growth in the use of alternative fuel vehicles requires strategic collaboration with the renewable fuels industry, utilities, auto manufacturers, fuel retailers and related industry shareholders, the executive summary said. That includes giving incentives for alternative fueling infrastructure such as blender pumps. It is key to fostering successful business models the regulatory barriers which have an impact on infrastructure development are addressed. Collaborating with the ethanol industry and auto makers to produce the next generation of highly efficient vehicles to run optimally on ethanol is a critical factor for sustaining the industry’s growth, the executive summary said.
“Optimizing vehicles for biofuels and empowering consumers to choose higher blends of ethanol and biodiesel will be keys to unlocking this potential,” IRFA said. “We look forward to working with Lt. Gov. Reynolds to put this plan in action for the betterment of Iowa farmers, consumers and workers.”
Read the original story: Iowa Energy Plan Includes Role Ethanol Can Play in State's Future
December 22, 2016
By Dave VanderGriend
Last November, I flew to India, a country suffering with some of the worst air pollution in the world. You can see smog hanging over cities like a blanket. I was there because India wants to increase its ethanol blending from E2.5 to E22. I thought about the hurdles it will encounter moving toward that goal, but, I realized if India wants to make it happen, it can be done, as it has in Brazil, Paraguay, Thailand and other countries using the same cars that we drive right here at home.
The United States, fortunately, has cleaned up much of its visual smog, but just because we can’t see it doesn’t mean many pollutants aren’t there. So, I started to think, what would it take to get the U.S. back to a leadership position in biofuel blending instead of just being an E10 follower? The simple answer is: to be able to put any ethanol blend into any car, from any pump.
Now, I know saying it is much easier than getting it done. But it does take us out of the box everyone tries to put us in and allows us to ask the question, why not? Every regulation, every rule making, every warning sticker is a made-up box that we find ourselves struggling to get out of.
The U.S. EPA finally allowing corn ethanol to meet the maximum of 15 billion gallons annually is certainly good news. At the same time, it is somewhat sobering, as this is as good as it will get in terms of what the renewable fuels standard (RFS) can provide as a demand driver. By 2022, when the RFS enters its next phase, the ethanol industry could be at 130 percent of current production, with supply exceeding demand. This could cause RIN and ethanol pricing to decline, if we are trading only in a fixed market.
It is no secret I have been ringing the alarm bell that we need to look beyond the RFS. Our blueprint for long-term success requires us to develop a future in which ethanol is given full access to the market and, in so doing, receives its full value for being a quality fuel.
This is where we may be able to capitalize on the new administration and a new attitude in Washington. Removing the dozens of unnecessary and burdensome regulations that thwart higher blends and infrastructure investment is a message that is well-received. Ethanol’s tried and true benefits of local job creation, agricultural benefits, energy independence, engine performance, low carbon and cleaner air have never been better positioned to flourish in a free market.
If you are like me, you want to see a plan to make this happen. I wrote a white paper in 2015 in which I offered a number of specifics. But as Urban Air gets deeper into the issues of ASTM, terminals, retailers, certification fuels, lifecycle analysis, emission testing and fuel studies, our list of unnecessary regulations has grown significantly. Then the question I ask myself is what does a free market look like and how do I know I’m there?
I look at our industry groups at the national and state levels and see so much talent. I am committed in 2017 to continue working with each of these groups and call us to action around creating an extensive list of all the roadblocks limiting a free market. We can then prioritize them, split them up according to our talents and eliminate them.
I have been in the situation many times, where politicians will ask what they can do for the industry. But I have yet to be able to hand them a comprehensive plan coming from a unified industry on how to get ethanol to a free market. Frankly, get us onto a level playing field, then the government can get out of the way and let us compete.
2017 is the year for the industry to pull together and grow beyond our dependence on D.C. We can take control of our own destiny by truly gaining access to a free market in which the consumer can choose the best fuel. If we are allowed to compete, ethanol will win.
Read the original article: Call to Action
December 27, 2016
By Janelle Atyeo
A new company in South Dakota is looking to optimize the nutrition cattle get from dried distillers grain.
Novita Nutrition will open a $95 million processing plant east of Brookings, S.D., early next year.
The plant will use distillers grain – a byproduct created when processing corn into ethanol. It will remove indigestible oil from the grain and create a pelletized feed called NovaMeal.
Making a better quality feed from distillers grain is something that Novita Nutrition CEO and President Don Endres came up with when working in the ethanol industry. Endres founded VeraSun Energy, an ethanol producer that grew rapidly in the 2000s but quickly went bankrupt when corn prices fell and the company was left with contracts it bought high.
Endres has seen other business ventures of his be successful. While the ethanol industry didn’t work out for him, it gave Endres the idea for his next big venture.
VeraSun, like other ethanol plants, sold distillers grain to cattle producers for use in the feed mix. Endres noticed, though, that after a few years, dairy farmers stopped buying their products.
He learned that oil in the grain – unsaturated fat – was an issue for the dairy cow diet. The cows already were getting unsaturated fat from silage and other grains in their diets. The amount of fat in the distillers grain varied depending on the ethanol production process, so it was difficult for dairy nutritionists to keep tabs on how much their cows were getting.
“If you put any amount of unsaturated fat in the diet, you can really throw them off,” Enders said.
Too much can cause milk fat levels to go down, he said, and milk fat is what dairies get paid for.
Distillers grain still packs nutritious protein and fiber, and Novita Nutrition has found a way to deliver those nutrients with less fat. NovaMeal is made by removing oil from distillers grain in the same way oil is extracted from soybeans, sunflowers and canola.
“It improves the digestibility of the protein,” Endres said.
Dairy nutritionists are concerned with the amount of protein that cows get after feed passes through the rumen. The amount that’s left is known as rumen undegradable protein, or RUP. In NovaMeal, the amount of protein left for the cows to absorb in the small intestine, where they can use it most, is 63 percent – more than soybean meal or canola, according to studies done by South Dakota State University.
NovaMeal also has more digestible fiber than common distillers grain, cottonseed, canola or soybean meal. Higher nutrient values means cows are getting more out of their feed.
“They’re able to absorb more of those nutrients rather than having it go out the tail end,” Endres said.
Novita Nutrition is preparing to process distillers grain on a large scale. The site near Aurora, S.D., was busy with construction crews on a cold November morning. The plant – located just west of the former VeraSun ethanol plant, now owned by Valero Energy – has been under construction since the summer of 2015.
Come next year, the plant will employ 40 people, and another 10 will continue working at the Novita Nutrition offices in nearby Brookings. Distillers grain will come in by truck and rail from ethanol plants in South Dakota, Minnesota and northwestern Iowa.
The raw material will wait for processing in a flat storage building that’s able to hold 5,100 tons.
The plant will be capable of processing 13 rail cars’ worth of distillers grain in a day, or 1,300 tons. That will mike 1,200 tons of NovaMeal pelletized feed and 100 tons of separated oil for used in biofuel or poultry feed.
A massive round bin will store the finished pellets, up to 6,000 tons.
Endres envisions selling 5 percent to 10 percent of their product to local customers along the Interstate 29 corridor. Much of it will go to dairy markets in central California, Washington, southern Idaho, western Texas and New Mexico.
Novita recently partnered with the Omaha, Neb.-based feed supplier Gavilon to deliver NovaMeal to western states.
Dairy markets are the primary focus for Novita Nutrition for now. Dairies are very focused on nutrition and often work closely with nutritionists, Endres said, but he added that it would be a nutritious meal in any kind of cattle feeding.
“It’s a very high-quality protein and fiber,” he said.
Endres grew up around Herefords on a farm east of Watertown, S.D., the son of Jim Endres and Teresa Endres. He wanted to raise Herefords like his parents, he said, and he went to South Dakota State University in Brookings to get a degree in animal science.
His career path led him in other directions, though, and he relied more on his minors in computer science and economics.
The first companies he helped start dealt with online payment platforms and electronic equipment. He helped build up both companies and saw them through successful mergers. He entered the ethanol industry in 2001 and soon afterward started brainstorming the idea that would become NovaMeal.
Nearing the opening of the plant in Aurora, Endres already is looking forward to building a second plant soon. He said he’s open as to where to build: “Anywhere with ethanol production and a base of livestock.”
Read the original story: Pellet Made from Distillers Grain Packs Protein, Not Fat
December 20, 2016
Press Release
Edeniq, Inc., a leading cellulosic and biorefining technology company, today announced that the U.S. Environmental Protection Agency (EPA) has approved Flint Hills Resources’ registration of its 120 MGPY Shell Rock, Iowa ethanol plant for cellulosic ethanol production using Edeniq’s Pathway Technology.
Shell Rock is the second plant to receive a cellulosic ethanol registration from the EPA after deploying Edeniq’s Pathway Technology. Pacific Ethanol’s Stockton plant received its cellulosic ethanol registration in September.
“We are greatly encouraged by the EPA’s rapid approval of this second registration,” said Brian Thome, President and CEO of Edeniq. “We are excited that a growing number of our customers are generating cellulosic ethanol, transforming the ethanol industry and benefiting our country.”
“Our goal is to create as much value out of every kernel of corn as possible,” said Jeremy Bezdek, Flint Hills Resources’ vice president, Biofuels & Ingredients. “The Edeniq Pathway technology helps increase ethanol yields and corn oil recovery, and allows us to produce cellulosic ethanol. We appreciate the strong partnership Flint Hills has with Edeniq and look forward to evaluating the potential use of the Pathway technology at our other plants.”
“We would like to thank the Flint Hills team for their ongoing support as we position ourselves as the leader in the cellulosic ethanol industry,” said Cam Cast, Chief Operating Officer of Edeniq. “Our team is working diligently to move plants through commercial trials and the EPA cellulosic ethanol registration process as quickly as possible despite a growing backlog.”
Edeniq’s Pathway Technology is the lowest-cost solution for producing cellulosic ethanol from corn kernel fiber utilizing existing fermenters at corn ethanol plants. Edeniq is the leader in developing analytical methods to quantify cellulosic ethanol co-produced with conventional ethanol during fermentation, which is required for EPA registration.
About Edeniq, Inc.
Edeniq has developed leading processes for producing low-cost cellulosic sugars and cellulosic ethanol. Edeniq’s capital light and operationally efficient solutions can be easily integrated into existing biorefineries that produce ethanol, other biofuels, biochemicals, and/or bio-based products. Edeniq currently sells or licenses its technologies to biorefineries in the United States. Edeniq was founded in 2008 and is headquartered in Visalia, California with a field office in Omaha, Nebraska. More information can be found at www.edeniq.com.
Edeniq, Inc.
Lily Wachter, 559-302-1777
This email address is being protected from spambots. You need JavaScript enabled to view it.
See the original press release here.
December 14, 2016
By Erin Voegele
The U.S. ethanol industry set a new production record the week ending Dec. 9, with production reaching an average of 1.04 million barrels per day, according to information published by the U.S. Energy Information Administration.
The U.S. ethanol has repeatedly broken records for ethanol production in 2016. The previous record was set the week ending July 15, when production averaged 1.029 million barrels per day. That record was tied the week ending Aug. 12, when production again averaged 1.029 million barrels per day.
The U.S. ethanol industry has surpassed the 1 million barrel per day mark only 21 times, all since November 2015. Prior to November 2015, the ethanol production record sat at 994,000 barrels per day, which was set the week of June 19, 2015.
Additional data is available on the EIA website.
Read the original story: US Ethanol Production Sets New Weekly Record
December 19, 2016
By Senator Amy Klobuchar
Back in 2009, I had the opportunity to attend the grand opening of Ever Cat’s biodiesel plant in Isanti. The company, started by a feed-supplement supplier for farmers, uses innovative technology to create biodiesel from waste. And every year since its opening, that plant has produced approximately 3 million gallons of diesel fuel to help fuel our cars, trucks and ships. And it’s employed more than two dozen people to do it.
That’s just one example of a Minnesota biofuel company that is helping strengthen our economy while decreasing our dependence on foreign oil:
o Claremont’s Al-Corn Ethanol is moving forward with plans for a new plant capable of processing about 47 million bushels of corn per year.
o Chippewa Falls Energy in Benson, one of the first farmer-owned ethanol-producing companies in the state, celebrated 20 years of business this year.
o And Highwater Ethanol in Lamberton is doing its part to cultivate the next generation by teaching high school students how the ethanol and agriculture industries positively impact the state and country.
Across Minnesota, our 20 ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. These companies create good jobs and strengthen local economies across our rural communities.
A recent study by ABF Economics showed that the ethanol industry generated $7.37 billion in gross sales in 2015 for Minnesota businesses and $1.6 billion in income for Minnesota households. The ethanol industry also supports over 18,000 full-time jobs in Minnesota.
That’s why I’ve fought for the expansion of renewable fuels through a strong Renewable Fuel Standard — or RFS, as it is also known. The RFS requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
Last October, I held a bipartisan meeting with 13 of my Senate colleagues, as well as White House Chief of Staff and Minnesota native Denis McDonough, to push for the Environmental Protection Agency to increase that minimum volume of renewable fuels. And when the proposed rule that the EPA announced earlier this year did not meet our expectations, Republican Sen. Chuck Grassley of Iowa and I led a group of senators urging the Administration to get the program back on track.
Our efforts produced good news for corn and soybean farmers and thousands of people who work in biofuels in Minnesota. Right before Thanksgiving, the Administration released a stronger final rule for 2017. The new standard will require a record amount of biofuel — 19.28 billion gallons — to be mixed into our transportation fuel supply next year. It increases the minimum volume for conventional renewable fuel — like corn ethanol — to 15 billion gallons, hitting the congressional target for the first time. And the required volume of biomass-based diesel is 2 billion gallons. That’s twice as high as the congressional target.
The Renewable Fuel Standard has helped create American jobs, drive innovation and boost local economies across Minnesota. And a stronger RFS will build on this progress. More good jobs, stronger local economies, less dependence on foreign oil – It’s a win-win-win for Minnesota.
Democrat Amy Klobuchar represents Minnesota in the U.S. Senate.
Read the original story: Creating Jobs with Innovation
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Dec 13, 2016
WASHINGTON — Recent data from the U.S. Department of Energy (DOE) shows that gasoline consumed in 25 states and the District of Columbia contained more than 10.0 percent ethanol on average in 2015, demonstrating that the so-called “E10 Blend Wall” continues to crumble. The national average ethanol blend rate was 9.91 percent according to the DOE data. According to the Renewable Fuels Association (RFA), the data completely undermine legislation proposed by Reps. Bill Flores (R-Texas) and Peter Welch (D-Vt.) that suggests the gasoline market cannot withstand more than 9.7 percent ethanol content.
The data show that ethanol comprised 12.5 percent of the gasoline pool in Minnesota in 2015. Not coincidentally, ethanol flex fuels like E85 are available at roughly one out of every eight stations in the Gopher State. In Iowa, gasoline contained an average of 11.5 percent ethanol in 2015, up from 10.3 percent in 2014 and just 9.5 percent in 2013. The 2015 data is the latest available and was just published by DOE’s Energy Information Administration.
Ethanol also exceeded 10.0 percent of gasoline consumption in 2015 in coastal states like California, Oregon, New Jersey, Massachusetts, Connecticut, and even Louisiana. For the first time ever, not a single state had average ethanol content below 9.0 percent in 2015, the data show. Vermont ranked last in average ethanol concentration at 9.18 percent.
In 2014, the national average ethanol content was 9.83 percent and 22 states (plus the District of Columbia) were above 10.0 percent on average.
RFA President and CEO Bob Dinneen said the DOE data underscore that the Renewable Fuel Standard (RFS) is working as intended to drive increased use of ethanol and other biofuels. “As E15 and ethanol flex fuels like E85 have gained in popularity in recent years, the so-called blend wall has been reduced to a pile of rubble,” Dinneen said. “This data clearly shows that the RFS is delivering on its promise to expand consumer access to lower-cost, cleaner fuel options at the pump. And with EPA putting the RFS back on track in 2017, the share of renewables in our nation’s motor fuel will only continue to grow.”
Read the original story here: DOE Data: Half of United States Broke Through So-Called "Blend Wall" In 2015
Dec 9, 2016
By Anna Simet
A United Kingdom company has successfully converted a Minnesota ethanol plant into an n-butanol production facility, which is now online after two years of development.
David Anderson of Green Biologics Inc., the U.S. subsidiary of U.K.-based Green Biologics Ltd., said the plant has already made its first customer shipment and facility operations are going well so far. “We have a nice pipeline of customers lined up, and it’s pretty exciting times,” he said. “We’re going to ramp up production, and that will take from anywhere from 12 to 18 months, before it’s running at full capacity. But we’re meeting orders right now, which is always a nice thing.”
The first order was shipped out via bulk tank truck and in drums to a customer in the U.S., he said, but added that the company is working on capabilities to enable shipping to European customers as well.
The plant marks Green Biologics’s first commercial facility in the U.S., adding to its existing portfolio that includes a one-thirtieth-scale demonstration plant in Emmetsburg, Iowa, and a pilot plant in Gahanna, Ohio. Green Biologics acquired the Little Falls ethanol plant in December 2014 and renamed it Central MN Renewables LLC, taking advantage of the existing grain handling and storage facilities, fermentation assets, water treatment capabilities, and feedstock supply chain—corn—already in place. On top of that, most of the existing staff was kept in place, employees familiar with the facility, new technology and, Minnesota winters, during which Anderson said he doesn’t foresee any operational challenges. “The good news is this plant already existed as a fully functional ethanol plant, they’re [plant staff] a hearty bunch up there,” he said. “It’s the same crew, we didn’t change out a whole lot, and we have even added some head count there.”
Area growers and the state supported the project, including the Minnesota Department of Employment and Economic Development, and the Minnesota Department of Agriculture, which awarded the project $500,000 in state Next-Gen funding last year.
On future development, Anderson said the company is always looking for additional assets, but it’s possible the Little Falls site could be expanded, and fairly easily. “Rather than doing another retrofit project at a different location, we can weigh the options to determine whether it’s more effective to expand the existing asset,” he said. “The whole concept of our fermentation process says that the fermenter can produce more product than we can currently distill, so to add more capacity, it really just means add some more distillation columns to the end of the process, and it’ll give us more yield.”
Green Biologics’ advanced fermentation process can convert a wide range of feedstocks into green chemicals such as n-butanol, acetone and, through chemical synthesis, derivatives of butanol and acetone. For now, and for the foreseeable future, Anderson said, Green Biologics will focus on specialty markets. “We’ve been watching how the markets are developing—the larger, more commodity-type end-uses for n-butanol, and we decided to change our strategy and become less focused on that, and more focused on specialty applications where, under our own brand name, we put products in small bottles in retail stores,” he said.
Anderson said that to date, Green Biologics has avoided the transportation fuel market. “Once oil gets back up to a reasonable number, $100 per barrel, we might look at it again, but right now, we don’t see potential in trying to slug it out. The battlefield of renewable chemicals is littered with companies, but making a run for it.”
Read the original story here : Minnesota n-Butanol Plant Comes Online
December 7, 2016
By Representative Tim Walz
Following a bipartisan letter my colleagues and I sent on July 13 to the Environmental Protection Agency (EPA), the Obama Administration made a momentous decision affecting both US energy policy and the rural economy. On Nov. 23, the EPA released its 2017 volume obligations for transportation fuels under the Renewable Fuel Standard (RFS), and to the relief of rural America, the RFS is back on track.
After calling on the administration to aggressively expand the production of renewable fuels to levels consistent with congressional intent, the EPA reversed its initial proposal to cut RFS volumes and instead increased the 2017 target for ethanol by 200 million gallons, bringing it in line with the 15 billion gallon per year target in the RFS law. The final rule also increased the target for advanced biofuels by 280 million gallons.
I would argue that this decision, while not as high-profile as the Paris Climate Accord, is more consequential to Minnesota’s First District.
The RFS, first introduced in 2005 and expanded in 2007, is the most significant program ever established by Congress aimed at invigorating rural economies, achieving energy independence and tackling the threat of climate change.
For climate change and greenhouse gas (GHG) emissions, the equation is fairly simple: renewable transportation fuels emit less carbon than gas. Thus, at a time when the administration is clamping down on emissions and placing regulatory burdens on power plants to reign in carbon, it only made sense for the EPA to drop its misguided proposal in favor of increased renewable fuel volume obligations. The emission reductions that will result constitute another step in the right direction towards tackling the threat of climate change.
Similarly consequential is the significant economic impact of the RFS. The RFS has helped employers create thousands of jobs and jumpstarted local economies throughout the country. In the ethanol industry alone, the RFS has contributed to nearly 400,000 American jobs, bringing in more than $44 billion in economic activity. Today there are at least 211 ethanol bio-refineries across the country and new biofuel production facilities are in the works that will create even more jobs. The final 2017 RFS volumes will undoubtedly protect and expand this economic engine by spurring even more ethanol production.
Finally, the economic benefits of the RFS are significant, but equally as significant is the achievement of these benefits while at the same time lessening our dependence on foreign oil. Instead of sending our hard earned dollars out of the country to buy fossil fuels, we are drawing in investments from countries across the globe interested in supporting a renewable economic success story. In fact, since the creation of the RFS in 2005, America’s dependence on foreign oil has dropped by 45 percent. The administration’s newly minted rule will help Minnesota’s ethanol producers continue to advance American energy security.
The EPA’s final rule fosters the RFS’ three distinct and important benefits: rural economic invigoration, energy independence and reduction of GHGs. I support the Administration’s November 23 decision and, as I have persistently done so in the past, I will continue to fight for a robust RFS that maintains congressional intent to promote these benefits.
Read the original story: Reinvigorating Renewable Energy in Southern Minnesota
December 7, 2016
By Chris Lusvardi
DECATUR — Ethanol producers including Archer Daniels Midland Co. are hoping to find ways to increase usage of the product domestically and abroad.
Ethanol can continue to remain competitive, primarily because of its price advantage and benefits to air quality, Craig Willis, president of the ethanol business in ADM's corn processing business unit.
Willis spoke Tuesday during an agribusiness update seminar sponsored by Sikich held at the Decatur Conference Center & Hotel.
Having more retailers offer blends of E15 fuel is an important step, Willis said.
“We've worked several years to start the ball rolling downhill,” Willis said. “It's a domino effect as more E15 goes into the market. It affects everybody up and down the chain.”
Willis said 10 chains currently offer E15 at gas pumps in about 4,800 locations nationwide.
Exports continue to be significant as ethanol competes with other products around the world, he said.
Although gasoline prices have recently dropped and remained lower than a few years ago, Willis said it has led to more driving.
“Any growth in gas demand is more demand for ethanol,” Willis said.
The status of the ethanol industry was one of the updates related to agribusiness provided during the seminar.
The Midwest Inland Port continues to be the primary focus of local economic development efforts, said Ryan McCrady, Economic Development Corporation of Decatur and Macon County president. Marketing efforts are under way to make Decatur an attractive place for businesses to grow, he said.
The ADM intermodal ramp is at the center of those efforts, with users coming from surrounding areas including Springfield, Centralia and Peoria, McCrady said. That can lead to more job creation in Decatur as the ramp gets more use, he said.
“The benefit is it brings the costs down for everybody,” McCrady said. “Regional collaboration is the wave of the future.”
A portion of Decatur's work force, about 10,400 workers, is driving in from other counties, McCrady said.
Work force availability and quality, transportation networks and quality of life are all factors for decision makers looking to attract and retain employees, each of which McCrady said Decatur can provide.
The Midwest Inland Port and ethanol are among the big ideas and opportunities available in agriculture, said Tom Bayer, Sikich's partner in charge of agribusiness services. Bayer discussed various opportunities for tax credits, including for farmers, that can help businesses reach desired profit numbers.
“The business of farming has gotten more complicated,” Bayer said. “A lot of risk is out there.”
Commodity prices have made margins thinner, which Bayer said means farmers need to look at all opportunities.
Read the original story: Ethanol Industry Offers Agribusiness Potential
December 5, 2016
U.S. Sen. Al Franken (D-Minn.) issued the following statement after the Environmental Protection Agency (EPA) finalized a strong 2017 Renewable Fuel Standard (RFS), which dictates how much biofuel is blended into our nation's fuel supply.
Six months ago, the EPA proposed 2017 renewable fuel volume requirements that Sen. Franken said weren't good enough. Since then, he's pressed the Obama Administration to make the RFS stronger, and today, the EPA acted by improving future biofuel targets for ethanol, biodiesel, and advanced biofuels.
"The Renewable Fuel Standard creates good jobs, promotes homegrown energy, and decreases our reliance on foreign oil," said Franken, a member of the Senate Energy Committee. "So that's why earlier this year, when the EPA proposed inadequate RFS targets for 2017, I immediately fought back. I'm very pleased to see that the Obama Administration listened and that we're going to see stronger requirements for ethanol, biodiesel, and advanced biofuels. This is big news for farmers, rural businesses, and communities across Minnesota."
The RFS was created around a decade ago as a method to expand our energy portfolio by requiring that the nation's fuel supply is blended with renewable fuels like ethanol and biodiesel.
Read the original story: Franken Successfully Helps Fight to Improve RFS
December 4, 2016
By AJ Taylor
At the Homeland Security and Governmental Affairs’ Subcommittee on Regulatory Affairs and Federal Management hearing entitled “Examining Two GAO Reports Regarding the Renewable Fuel Standard,” U.S. Senator Joni Ernst (R-IA) stressed the importance of maintaining a strong Renewable Fuel Standard (RFS) to continue to grow the rural economy in Iowa, and bring consumer choice at gas pumps across the country.
As Senator Ernst noted, the RFS “really has spurred investment in domestic energy production, it’s helped grow our economy throughout the Midwest, especially in those rural areas, and it’s brought a lot of competition–needed competition—to the gas pump, and saves American consumers money and reduces reliance on foreign oil sources.”
Ernst pointed to a GAO report which illustrated that bolt-on cellulosic technology at existing plants is the most cost-effective means for generating advanced biofuels.
Specifically, the Iowa Senator highlighted a stop on her 99 county tour in Galva, Iowa, in which she explained the facility is “using corn fiber, which is a by-product of the ethanol process to create cellulosic ethanol. This is a great example of what this was originally intended to do; it was to support the expansion of conventional biofuels, as a springboard for those advanced biofuels.”
The Iowa Senator also cited her concerns over premature criticism of the RFS, “If we create further uncertainty about the future of the RFS and our commitment to biofuels, it will only serve to slow our research and investment down towards attaining those goals originally set by Congress.”
Senator Ernst’s remarks today follow her comments over the Environmental Protection Agency’s (EPA) recent release of their final RFS renewable volume obligations (RVO) for 2017 at the Congressionally-approved level of 15 billion gallons of conventional biofuel.
Read the original story: Ernst Stresses Importance of Strong RFS for Rural Economies at Hearing
December 2, 2016
By Ted Reed
United Airlines (UAL) , which uses about 4 billion gallons of fuel annually -- making it one of the world's biggest fuel consumers -- also has become the airline industry's leader in seeking to reduce global carbon emissions.
United said it accounts for about 60% of the global aviation industry's commitment to biofuels. It expects to purchase about 900 million gallons of biofuel or 90 million gallons a year for the next 10 years.
According to United figures, Cathay Pacific is second, committed to 413 million gallons of biofuel use, while JetBlue is committed to 109 million gallons, Lufthansa is committed to 42 million gallons and other airlines collectively are committed to about 70 million gallons.
In March, in a demonstration of its commitment, United became the first U.S. airline to use a high percentage of biofuel (about 30%) to power a regularly scheduled flight, which operated between Los Angeles and San Francisco for two weeks.
On Friday, sustainability officers from United, JetBlue and Alaska will discuss their efforts during the final day of a Fort Lauderdale, Fla. conference presented by Jersey City, N.J.-based Companies Vs. Climate Change, which seeks to provide a forum for businesses to discuss climate change solutions.
United is "trying to grow the biofuels industry for aviation," said Natalie Mindrum, the carrier's director of environmental responsibility. "We want to be a leader in this area."
Biofuels are sustainable fuels created from renewable sources, such as agricultural waste and even household wastes, but not, in United's case, from corn or other edible sources. "We are not competing with food sourcing," Mindrum said.
U.S. commercial aviation produces 2% of the nation's man-made greenhouse gas, while driving 5% of GDP, according to figures from Airlines for America.
Most airlines seek to reduce fuel use through the purchase of new aircraft, the installation of winglets on aircraft, and fuel conservation programs such as single-engine taxi, careful calibration of how much fuel to carry and the use of electricity rather than engines when aircraft are on the ground.
But United goes a step farther in its biofuels commitment, which has played out in two efforts.
One is a partnership with AltAir Fuels, a Paramount, Calif.-based biofuel company. United signed its first agreement with Altair in 2009; fuel production begin in March 2016. "We will purchase up to 15 million gallons annually over the next three years," Mindrum said. "This is a small percentage, but we have to start somewhere."
In a continuing effort, at Los Angeles International Airport, United has spearheaded the inclusion of biofuel (a single-digit percentage) in the airport fuel supply used by all of the airport's carriers.
Fuel from AltAir is provided to the fuel farm at LAX, with the result that "every flight {which takes on fuel at LAX} has a small quantity of biofuel," she said.
The bulk of United's potential biofuel use will result from a partnership with Fulcrum BioEnergy, a Pleasanton, Calif.-based company that seeks to convert municipal waste into aviation biofuel.
In 2015, United invested $30 million in Fulcrum, the single largest investment by a U.S. airline in alternate fuel. The two companies envision joint development of up to five projects at United's hubs, expected to produce 180 million gallons of biofuel annually. The first site has yet to be selected.
Fulcrum takes household trash, converts it to gas through one process, and then converts carbon monoxide and hydrogen gases into liquid fuel. Cathay Pacific has also invested in Fulcrum.
Mindrum said the use of Altair fuel reduces carbon dioxide emissions by 60%, while the use of Fulcrum fuel reduces carbon dioxide emissions by 80%. "By using waste, we are not pulling fossil fuels out of the ground," she said. "We are using {materials} that have already been pulled out."
U.S. airlines are all committed to reducing carbon emissions, although the extent of their current commitments vary.
Among the four largest carriers, American (AAL) -- which already has the youngest fleet of the network carriers -- takes a new airplane every week. Employees are strongly encouraged to seek out methods to reduce fuel consumption, and the carrier is "evaluating the alternative jet fuel industry and identifying the most promising companies and technologies," said spokesman Matt Miller.
Delta (DAL) has reduced fuel burn per available seat mile by 6% since 2008 and is phasing out some older aircraft, such as the Boeing 747 and 50-seat regional jets. It has a program that enables passengers to make financial contributions to offset the environmental impact of its flights.
"We're the only U.S. airline committed to carbon-neutral growth," said spokesman Trebor Banstetter. "We also nabbed the top airline spot for global companies in the 2016 Newsweek Green Rankings, ranking 85th."
Southwest (LUV) not only is modernizing its fleet and implementing fuel savings project, but also it signed a 2014 agreement with Red Rock Biofuels to purchase 3 million gallons of biofuel annually.
"This renewable fuel will be refined in Oregon from forest residues, helping to reduce the risk of destructive forest fires," the carrier said on its website. "The blended product of biofuel and jet fuel is expected to be used at Southwest's San Francisco Bay Area operations, with first delivery anticipated in 2018."
Read the original story: How United Leads the Airline Industry in Reducing Carbon Emissions
December 1, 2016
By Rachel Gantz
Today the Senate Homeland Security & Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management is holding a hearing examining two reports by the Government Accountability Office (GAO) on the Renewable Fuel Standard (RFS). The reports incorrectly suggest the RFS is falling short of its goals to support commercialization of advanced and cellulosic biofuels.
In response to the hearing and the GAO reports, Renewable Fuels Association (RFA) President and CEO Bob Dinneen issued the following statement:
“This hearing and the GAO reports really miss the point. The RFS has been a resounding success by any measure. It has created high-paying jobs across America, reduced oil imports from OPEC, lowered consumer fuel prices, slashed emissions from the transportation sector, and driven substantial investment into advanced and cellulosic biofuel technologies.
“While first-generation biofuels were already proven in 2007 when Congress expanded the RFS, legislators knew full well that the pace of commercialization for advanced and cellulosic biofuel technologies was somewhat uncertain. That’s precisely why Congress included measures allowing EPA to adjust advanced and cellulosic volume requirements. Indeed, the volumes in the 2007 bill were not a forecast, but rather an aggressive goal and bold vision to support the creation of a vibrant low-carbon advanced biofuel market.
“That bold vision is in fact being realized, and advanced biofuel production has grown dramatically under the RFS. Production and use of advanced biofuels has risen from less than 200 million gallons when the original RFS was adopted in 2005 to approximately 4 billion gallons (RINs) in 2016—a 20-fold increase. That’s a remarkable achievement that simply wouldn’t have occurred without the RFS.
“GAO also ignores a number of important factors that have impeded more rapid growth in advanced and cellulosic biofuel production. The Great Recession and financial crisis, lengthy delays by EPA in setting annual RFS volume requirements, uncertainty caused by oil industry lawsuits and repeal efforts, and OPEC manipulation of world oil markets are just a handful of unforeseen challenges that have undercut more rapid development of next generation biofuels.
“Still, even with that uncertainty and instability in the background, leading innovators like DuPont, POET/DSM, Quad County Corn Processors, East Kansas Agri-Energy, CHS, Adkins Energy, ICM, Valero and many others are showing that advanced and cellulosic biofuels are real and are poised for explosive growth in the years ahead.”
Read the original story: RFA Statement on Senate Hearing Focused on GAO RFS Reports