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In the News

Star Herald

June 24, 2018

In letters to U.S. Department of Agriculture Secretary Sonny Perdue, more than 100 business and farm leaders across seven Midwest states called on regulators to lift restrictions on the sale of ethanol, a crop-based biofuel that drives Nebraska agricultural revenues and rural manufacturing. Signers from Nebraska included Alan Tiemann of Seward, Dinkel’s of Norfolk, Midwest Labs of Omaha and 20 others.

“New markets for American-made biofuels promise to rejuvenate growth, but long-standing policies designed to promote cleaner, more cost-effective options at the fuel pump have been under siege by special interests in Washington,” wrote 73 business groups and Midwest employers. “We ask that you stand firm against these attacks and use every tool available to prevent U.S. Environmental Protection Agency Administrator Scott Pruitt from adopting regulatory schemes that would further undercut demand for biofuels and their energy-rich farm feedstocks.”

The business leaders noted an urgent need to reverse a five-year dive in farm income that threatens to stall the rural economy “well beyond farm communities.” They also called on Perdue to act swiftly on the President’s pledge to lift outdated restrictions against the summertime sales of E15, a motor fuel containing 15 percent ethanol. The message was mirrored by farm leaders in their own letter to Secretary Perdue.

“For far too long, the EPA has failed to update regulations on Reid Vapor Pressure, which hold E15 to tougher standards than traditional gasoline during the summer,” wrote 37 Midwest agricultural groups and farmers, who harvest the renewable energy for nearly every gallon of U.S. ethanol. “There’s no reason for the restriction, which prohibits many retailers from offering cleaner, more-affordable options to their customers. Lifting these needless restrictions would provide a vital outlet for America’s 3.9 billion bushels of surplus grain, boost rural growth, and promote American energy dominance.”

The letters were offered in a show of support for an ongoing campaign organized by Growth Energy, America’s leading trade association of biofuel producers and supporters. Under Growth Energy’s leadership, rural advocates from across the country have urged policymakers in Washington to unleash America’s vast renewable resources to lower fuel prices, strengthen U.S. energy security, protect the climate, and put an end to a farm crisis that threatens to send an entire generation of farmers out of business. A similar call to action was issued earlier this month by 55 public officials from Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin.

“Starting June 1, outdated federal regulations cut off millions of drivers from a lower-cost fuel that supports farmers and rural manufacturing,” Growth Energy CEO, Emily Skor, said. “President Trump promised Midwest lawmakers that he would fast-track a fix, and Secretary Perdue is working with the EPA on a solution, but time is running out. Farmers cannot afford to be locked out of the market for another driving season, especially when we could be holding down quickly-rising gas prices.”

Intended to reduce evaporative emissions, the current RVP guidelines were drafted before E15 hit the market, resulting in outdated restrictions that hold E15 to higher standards than less eco-friendly options offered all year long. Those limits now threaten growth opportunities for farm crops amid the sharpest agricultural downturn since the 1980s.

“Ethanol is really about enhancing the value of corn, as I sell #2 corn as a commodity and then buy distillers grain as a feed for my cow herd, and then you add in the cleaner air that ethanol provides, it is such a win-win for Nebraskans”, stated LaVon Heidemann of Elk Creek another signer on the letter.

Read the original article: Business and Farm Leaders Seek Relief from Limits on Biofuels

Global NewsWire

June 21, 2018

Gevo, Inc. announced today that it has entered into a long-term agreement to supply its renewable alcohol-to-jet fuel (ATJ) to Avfuel Corporation, effective July 1, 2018 (the “Supply Agreement”). Avfuel is a leading global supplier of aviation fuel and services to all industry consumer groups, servicing more than 3,000 locations worldwide. The Supply Agreement with Avfuel is Gevo’s first long-term commercial supply agreement for its ATJ.

“We are pleased to have a customer and partner like Avfuel. Avfuel has tremendous reach with more than 650 Avfuel-branded locations and 3,000-plus fueling locations worldwide to a vast scope of customers. We appreciate its vision and leadership in working with us to bring a better and more sustainable fuel to the market place. Not only can we reduce greenhouse gas emissions, but we also can produce a higher quality product than petroleum-based jet fuel from a technical standpoint. The whole supply chain should benefit, as well as the end customer. This contract with Avfuel is an excellent first step and will serve as a catalyst for Gevo to build up the aggregate demand so we can proceed with the development of a larger scale ATJ facility,” said Patrick Gruber, Gevo’s chief executive officer.

Craig Sincock, owner, president and CEO of Avfuel said, “As a leader in the global supply of aviation fuel and services, we have a social responsibility to make sustainable alternative jet fuel a reality in the marketplace. Our agreement with Gevo is a notable component in our overall strategy to support our industry’s commitment to reduce carbon emissions and enhance sustainability to mitigate its effect on climate change.”

Sincock remarked that the agreement with Gevo will help the company meet the demand of its customers for a low-carbon, alternative jet fuel, filling a gap in the industry’s supply chain. 

The Supply Agreement contemplates two phases. During the first phase, Gevo will supply Avfuel from its smaller-scale hydrocarbon processing facility it operates in Silsbee, Texas, in partnership with South Hampton Resources, Inc. (the “Silsbee Facility”).  Currently, the Silsbee Facility has the capacity to produce approximately 70,000 gallons of renewable hydrocarbon products per year (50% of which is ATJ and 50% of which is isooctane).

During the first phase, Gevo expects to construct a larger-scale hydrocarbon facility at its existing ethanol and isobutanol production facility located in Luverne, Minnesota, (the “Luverne Facility”) to produce larger quantities of ATJ (the “Luverne Hydrocarbon Facility”), subject to Gevo's receipt of sufficient financing. Upon completion of the Luverne Hydrocarbon Facility, the second phase of the Supply Agreement would commence, which would have a term of five years, subject to extension upon the mutual agreement of the parties. During the second phase, Gevo would supply Avfuel with larger volumes of ATJ, ramping up to 1,000,000 gallons of unblended ATJ per year, which, when blended with conventional jet fuel, would produce many millions of gallons of finished ASTM D1655 jet-fuel product for distribution per year.

With further regard to the environment, for every one million gallons of ATJ produced, approximately 20 million pounds of animal feed and protein would also be produced and sold into the food chain. To produce ATJ, Gevo fractionates grain to produce protein and animal feed while using the residual carbohydrate portion of the grain for fermentation to produce the intermediate chemical: isobutanol. The isobutanol is then chemically transformed using a hydrocarbon processing facility into ATJ meeting ASTM D7566 (standard specification for aviation turbine fuel containing synthesized hydrocarbons). The ATJ made by this process has very low sulfur, low particulates, and higher energy density than petro-based jet fuel. 

About Gevo

Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo can produce isobutanol, ethanol and high-value animal feed at its production facility in Luverne, MN. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Learn more at our website:  www.gevo.com.

About Avfuel Corporation

Avfuel provides fuel and services to the global aviation industry and is the leading independent supplier in the United States. Established as a supply and logistics company 45 years ago, Avfuel is core competent in every aspect that surrounds the delivery of fuel—from refinery to wingtip. Avfuel combines global access with personalized service throughout a fueling network of more than 3,000 locations worldwide and 650+ Avfuel-branded FBOs. Our 100% dedication to aviation demonstrates our passion and commitment to a global community that prospers on the movement of goods and services around the world.

Read the original article: Gevo and Avfuel Enter into Renewable Jet Fuel Supply Agreement

Ethanol Producer Magazine

June 20, 2018

By ADM

Archer Daniels Midland Co. and DuPont Industrial Biosciences today announced a collaboration to develop, produce and market cellulase enzymes for operators of grain-based ethanol plants.

Cellulase enzymes assist in hydrolyzing the corn kernel fiber, which consists mostly of cellulose and hemicellulose carbohydrates. Once the fiber is broken down, more sugars can be liberated and then fermented into ethanol, helping grain-based fuel ethanol producers get more out of existing feedstocks. As corn kernel fiber is part of a lower-value co-product stream, the potential to develop more valuable “Gen 1.5” ethanol is attractive. Ethanol from corn kernel fiber may qualify for D3 RINS under the Renewable Fuel Standard, which encourages producers to use technology in order to utilize non-starch components of grains and other waste products in the production of biofuels.

“The industry is looking increasingly at enzyme-based tools to boost yields and produce additional ethanol without having to make significant capital investments, and we look forward to working with DuPont to help deliver solutions in this space,” said Collin Benson, ADM’s vice president of bioactives.

“We’re thrilled to add yet another significant pillar in our partnership with ADM. We are already working together in high performance renewable bio-materials; now this agreement brings together substantial resources and capabilities in the pursuit of new innovations for grain-based biofuels,” said Troy Wilson, DuPont Industrial Biosciences’ global industry leader of grain processing.

Initial product prototypes have proven successful in both laboratory and ethanol plant scale testing, and more evaluations are planned.

Read the original article: ADM, DuPont to Develop, Produce and Market Cellulase Enzymes

Reuters

June 20, 2018

By Jarrett Renshaw, Chris Prentice

The U.S. Environmental Protection Agency will propose reallocating biofuel blending obligations waived under its small refinery exemption program to other refiners, in an announcement that could come as early as Friday, according to two sources familiar with the agency’s plans.

The move is a nod to biofuel groups frustrated with the agency’s broad expansion of the waiver program under the Trump administration, but will antagonize refining companies who say it will unjustly increase their regulatory costs.

U.S. renewable fuel credits tied to ethanol jumped by a nickel on Wednesday on the news, hitting 28 cents apiece, according to two traders.

The EPA is expected to make the announcement as part of the release on Friday of the agency’s proposed annual biofuel blending mandates under the U.S. Renewable Fuel Standard (RFS), one source told Reuters.

The RFS requires refiners to blend biofuels like ethanol into the fuel pool or buy compliance credits from those who do. Refineries with capacity of less than 75,000 barrels per day can seek waivers from the program if they can show that complying would cause them significant financial damage.

The EPA under administrator Scott Pruitt has roughly tripled the number of waivers issued compared with the previous administration, drawing criticism that he is gutting the program. Biofuel groups say the waivers have cut the ethanol mandate from 15 billion gallons to 13.5 billion gallons.

Under the proposed reallocation, refiners that do not receive exemptions would be forced to make up the volumes waived to others. The sources were not certain how the EPA planned on handling those reallocations, which the refining industry has said it would strongly oppose.

“Our view is reallocating volumes would obviously conflict with public and private statements on the issue,” said Frank Macchiarola, group director of downstream and industry operations at the American Petroleum Institute.

Macchiarola said the move would be a breach of trust and add to the burden of the program on all the refiners that do not qualify for the exemptions.

EPA spokesman Jahan Wilcox did not respond to a phone call and email seeking comment.

Last week, the EPA drew criticism when it said it could not reallocate volumes retroactively without an act of Congress, which at the time dashed hopes of the biofuel industry.

Read the original article: EPA to Propose Reallocating Waived Biofuels Volumes to Other Refiners: Sources

Ethanol Producer Magazine

June 13, 2018

By Erin Voegele

On June 13, the Senate ag committee approved its version of the 2018 Farm Bill with bipartisan support. The legislation includes an amendment offered by Sen. Amy Klobuchar, D-Minn., that restores mandatory funding to Farm Bill Energy Title programs. The legislation, officially titled the Agriculture Improvement Act of 2018, will now be considered by the full Senate.

Klobuchar offered the amendment during a June 13 committee meeting held on Farm Bill legislation. The amendment aims to restore mandatory funding for Energy Title programs to 2014 levels.

“In the 2014 Farm Bill, I successfully pushed for a strong Energy Title with funding necessary to continue to support homegrown renewable fuels…which support thousands of jobs and millions of dollars in economic growth,” Klobuchar said.

Committee Chairman Pat Roberts, R-Kan., noted that some of the Energy Title programs impacted by Klobuchar’s amendment include the Biomass Research and Development Initiative; the Biobased Markets Program; the Biorefinery, Renewable Chemical and Product Manufacturing Assistance Program; the Bioenergy Program for Advanced Biofuels; and the Biomass Crop Assistance Program.

Ranking Member Debbie Stabenow, D-Mich., spoke out in support of the amendment and Klobuchar’s leadership, calling the legislation a jobs amendment. “It’s about the rural bio economy,” she said. “It’s about jobs and rural America. These program have leveraged more than $5 billion in private investments since 2009.”

The Agriculture Energy Coalition has spoken out to applaud Klobuchar for offering the amendment, noting it was cosponsored by a bipartisan group of committee members, including Sens. Tina Smith, D-Minn.; Chuck Grassley, R-Iowa; Joni Ernst, R-Iowa; Deb Fischer, R-Neb.; Michael Bennet, D-Colo.; Heidi Heitkamp, D-N.D.; and Bob Casey, R-Pa.

“The Coalition thanks all of the Senators for their strong, bipartisan leadership on this amendment,” said Lloyd Ritter, director of the AgEC. “The farm bill energy title programs support more than 1.5 million U.S. workers who manufacture biobased products. The programs have helped rural business, farms and ranches secure more than $5 billion in private investment to adopt new renewable energy technologies and generate economic opportunities.

“We look forward to working with the Senate and House to ensure that the final farm bill includes an Energy Title, with stable mandatory funding and necessary updates for the vital programs.”

Also during the Farm Bill meeting, committee members discussed the Renewable Fuel Standard and the U.S. EPA’s misuse of small refinery hardship waivers.

Klobuchar stressed the RFS is critically important to Minnesota, and cited recent reports that indicate the EPA has granted dozens of small refinery waivers to large refining companies. “These actions hurt not only biofuel producers, but farmers across the U.S. at a time when farm income is at its lowest since 2006,” she said. “The secretary of agriculture has deemed these waivers as demand destruction for biofuels.”

According to Klobuchar, the EPA has historically granted between six and eight waivers per year for extraordinary reasons. “But, recent reports have noted that the EPA has already issued 25 disproportionate hardship waivers this year.”

Grassley cited news reports that EPA Administrator Scott Pruitt said in Kansas yesterday that he has the authority to reallocate gallons offset by the waivers. He stressed that President Trump has repeatedly promised to meet the 15 billion gallon statutory renewable volume obligation (RVO) for conventional biofuels. However, the EPA’s misuse of waivers has effectively cut the RVO to 13.8 billion gallons. Grassley also spoke about the agency’s proposed 2019 RVOs, which are expected to be released soon. He said we don’t know what the EPA will propose for 2019, but stressed the EPA better keeps Trump’s promises with regard to the RFS.

Read the original article: Senate Ag Committee Restores 2018 Farm Bill Energy Title Funding

Ethanol Producer Magazine

June 15, 2018

By Erin Voegele

The U.S. Energy Information Administration has released the June edition of its Short-Term Energy Outlook, maintaining its May prediction that ethanol production will average 1.04 million barrels per day in 2018 and 2019, up from an average of 1.03 million barrels per day in 2017.

On a quarterly basis, the EIA predicts U.S. ethanol production will average 1.04 million barrels per day during the second quarter of this year, falling to 1.03 million barrels per day during the third and fourth quarters. In 2019, the EIA currently predicts ethanol production will be maintained at 1.03 million barrels per day during the first quarter, before increasing to 1.04 million barrels per day in the second and third quarters, and increasing again to 1.05 million barrels per day during the final quarter of the year.

Ethanol consumption is expected to reach 950,000 barrels per day this year, up from 940,000 barrels per day in 2017. Next year, ethanol consumption is expected to increase, reaching an average of 960,000 barrels per day.

The EIA’s most recent weekly ethanol production data shows production averaged 1.053 million barrels per day the week ending June 8, up from 1.041 million barrels per day the previous week.

The EIA’s most recent monthly data shows the U.S. imported 141,000 barrels of ethanol in March. Ethanol exports reached 5.122 million barrels in March, with Brazil, Canada and China listed as the top three destinations.

Read the original article: EIA Maintains It's 2018, 2019 Ethanol Production Forecasts

Renewable Fuels Association

June 15, 2018

By Bob Dineen

It all started last weekend when word of his visit started to leak out and the ethanol and agriculture community began wondering aloud if the whole thing was anything more than a hollow good will tour to deflect attention from his anti-ethanol policy.

Day 1 of his Redemption Tour had Pruitt telling ethanol producers his role was to provide stability to the market only to be told the company he was visiting would be shutting down a brand new, state-of-the-art renewable diesel plant because of market volatility created by Pruitt’s indiscriminate use of small refiner waivers. The same meeting included farmers telling Pruitt they were “mad as hell” at him.

Trying to deflect criticism, Pruitt told ethanol producers EPA had the authority to expand E15 sales year-around and that EPA could reallocate RINs lost to waivers. But the next day, he said EPA lawyers weren’t so sure about reallocating RINs and RVP could only be done if part of a package in which refiners got something too.  Really? 1.6 billion gallons in lost biofuel market share is not enough for them?

So much for market stability.

Kansas Corn Growers Association President Ken McCauley summed up the feelings of those who met with Pruitt when he said, “Our concern was that Administrator Pruitt thought he could come to Kansas, take a few photos with smiling farmers and tell the President that corn farmers are okay with his actions. That would be a gross misinterpretation of what happened here today.”

With that, day 1 was in the books.

Day 2 of Pruitt’s redemption tour started with farmers hosting a rally to protest Pruitt’s moves undercutting the RFS while the conservative Iowa-based America’s Future Fund started running an ad titled, “You’re Fired” and admonishing Pruitt for acting more like the Sultan of Brunei than the head of a federal agency. In a statement Pruitt said he thought it was “important to hear directly from the community that EPA regulates, and today we heard from farmers and utility workers about the impact of the Agency’s work.”  We’re sure protest rallies and negative ad campaigns are not exactly what Pruitt had in mind.

Day 3 started with a bang as DC reporters got wise to the PR-fail engulfing Pruitt and one publication asked if ethanol would finally tip the balance and put Pruitt out on his ear.  It sure looked that way after Iowa’s Republican governor said, “Pruitt needs to follow through with what the President promised to Iowans, and if he can’t, then we need to find someone who will.”

Forecasts of Mr. Pruitt’s future were stark.

The GOP Chairman in Anderson County, KS summed it up thusly: “I think that Mr. Pruitt probably is a dead man walking,” said Dane Hicks. “I can’t imagine he rebounds from this in any way to salvage his position. I would expect his resignation soon.”

Neil Koehler, CEO of Pacific Ethanol, which operates nine ethanol plants was equally direct when he said, “We have a rogue EPA secretary who should probably find another job because he’s making the President look like a liar.”

Reviews of his visit were dim and seemed to get worse and worse and worse and worse still.

The headlines said he is “hurting industries” and the news featured local politicians rallying the crowd and asking, “Administrator Pruitt, Do you hear us?” Others pointed out that Pruitt was breaking his promise to uphold the law and destroying demand for ethanol.

For his part, well, Pruitt seemed to oblivious to fervor  when he said that “there were a few billboards, but they didn’t say I hope you’re having fun.”

No, Mr. Pruitt, 1.6 billion gallons of lost demand and your failure to promulgate a rule making allowing E15 year-round is NOT fun.

Come again soon. Or not.

Read the original article: Scott Pruitt’s Terrible, Horrible, No Good, Very Bad Ethanol Tour

Syngenta

June 12, 2018

Press Release

Syngenta today announced that, it has agreements in place with more than 30 ethanol plants with a combined production capacity of approximately 3 billion gallons. As new plants come on board, Syngenta expects ethanol produced with Enogen® corn enzyme technology to be approximately 2.5 billion gallons during 2018 alone.

Enogen corn is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Enogen corn is rapidly gaining widespread acceptance because of the value it delivers to ethanol producers and the opportunity it provides corn growers to be enzyme suppliers for their local ethanol plants.

“Enogen corn is adding value for ethanol plants, corn growers and rural communities,” said Jeff Oestmann, head, Bio-fuels Operations – Enogen at Syngenta. “Across a growing number of ethanol plants, Enogen corn is helping to fuel enzyme innovation.”

The robust alpha amylase enzyme in Enogen grain significantly reduces the viscosity of corn mash and eliminates the need to add a liquid form of the enzyme. This breakthrough reduction can lead to unprecedented levels of solids loading, which directly contributes to increased throughput and yield potential, as well as critical cost savings from reduced natural gas, electricity and water usage.1 Enogen corn also enables ethanol plants to gain corn market knowledge from mid-year corn estimates.

Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. During 2018, Enogen corn is expected to generate approximately $28.5 million of additional revenue for local growers contracting with plants using Enogen grain through per-bushel premiums. Numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.2

“Syngenta is committed to the success of the U.S. ethanol industry and to helping ethanol plants adopt the best enzyme strategy,” Oestmann added. “We are proud to have made a significant investment to bring this game-changing technology to market. Enogen corn is helping to make ethanol more sustainable and is helping ethanol producers to differentiate their offerings while supporting their local communities by keeping enzyme dollars local.”

To inquire about incorporating Enogen into a dry grind ethanol plant, contact Jeff Oestmann at This email address is being protected from spambots. You need JavaScript enabled to view it.. For more information about Enogen corn hybrids, contact a Golden Harvest® Seed Advisor or NK® retailer, or visit www.Enogen.com.

1Calculations based on Enogen trial and commercial results at Midwest ethanol plants.
2Syngenta production data, 2012-2017

Read the original release: Enogen Corn from Syngenta Has Agreements with 30+ Plants with Combined Capacity of 3 Billion Gallons