In the News
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
November 29, 2016
By Ron Kotrba
The U.S. Government Accountability Office issued two reports Nov. 28 suggesting that the renewable fuel standard (RFS) program is unlikely to meet its targets for reducing greenhouse gas (GHG) emissions and expanding the U.S. renewable fuels sector. The reports largely attribute this supposition to production of advanced biofuels falling short of statutory requirements. Advanced biofuels such as biodiesel, renewable diesel and cellulosic ethanol provide the largest GHG reductions and, per statutory requirements of the RFS, were to make up 21 billion gallons of the 36 billion gallon renewable fuel volume obligations under the program by 2022.
The biofuels industries, however, can attribute this shortfall of advanced biofuels production back to the federal government by way of the U.S. EPA, which has questionably used its general waiver authority to reduce overall renewable fuel obligations under the RFS for the past several years—the subject of a pending lawsuit—and its cellulosic waiver authority to significantly reduce the cellulosic biofuel targets in the agency’s implementation of the program vs. statutory requirements.
Biofuel industries can hardly achieve the statutory goals when EPA continues to reduce the targets set out in the statute. Year after year, biofuel industry organizations representing producers of conventional and advanced biofuels call on EPA to increase the targets to more closely resemble those laid out in the statute. For instance, the National Biodiesel Board urged EPA to boost the biomass-based diesel target for 2018 to 2.5 billion gallons, which the agency finalized at 2.1 billion. The statute mandates that advanced biofuels are to provide 9 billion ethanol-equivalent gallons (6 billion biodiesel-equivalent gallons) to market by 2017, but the EPA has reduced this target to 4.28 billion ethanol-equivalent gallons (2.85 billion biodiesel-equivalent gallons). NBB pushed EPA to boost the advanced biofuel target for 2017 to 4.75 billion ethanol-equivalent gallons (3.17 billion biodiesel-equivalent gallons), citing ample feedstock and domestic production capacity to meet the increase, but EPA was not persuaded.
The GAO initially incorrectly reported that “less than 5 percent of the 3 billion gallon advanced biofuel RFS target was produced in 2015, and additional investments for commercialization seem unlikely.” Biodiesel Magazine contacted Frank Rusco with the GAO to advise him of this error. Rusco admitted this was a mistake, as it should have read “less than 5 percent of the 3 billion gallon cellulosic biofuel RFS target was produced in 2015.” Rusco thanked Biodiesel Magazine for pointing out the inaccuracy and the statement was subsequently corrected on the GAO website. Several media outlets, however, took this initial error as fact and reported the incorrect figures.
“The advanced biofuel category requirements of the RFS have been met every year of the program in large part thanks to the growth of the biodiesel industry providing the numerous benefits Congress sought for the environment, economy, and energy security,” said Donnell Rehagen, CEO of the National Biodiesel Board. “While the cellulosic biofuel category has taken a smaller portion of the overall advanced biofuel category to date than what Congress originally envisioned, the program is still driving growth of these and other advanced biofuels into the marketplace. The advanced biofuel requirement finalized by EPA last week will be met by a variety of fuels in the marketplace, all which reduce emissions by greater than 50 percent compared to petroleum.”
In its summary report, the GAO admitted that experts advised the office of the federal government’s role in influencing the effectiveness of the RFS, and how the investment climate for advanced biofuels could be improved by reducing uncertainty about the future of the RFS program and tax credits.
One aspect of the report was particularly contentious for the biodiesel sector. “Experts said that several advanced biofuels are technologically well understood and some are being commercially produced, but they noted there is limited potential for increased production in the near term and cited several factors that will make significant increases challenging,” the report summary stated. “Given that current advanced biofuel production is far below RFS targets and those targets are increasing every year, it does not appear possible to meet statutory target volumes for advanced biofuels in the RFS under current market and regulatory conditions. Biofuels that are technologically well understood include biodiesel, renewable diesel, renewable natural gas, cellulosic ethanol, and some drop-in fuels. A few of these fuels, such as biodiesel and renewable diesel, are being produced in significant volumes, but it is unlikely that production of these fuels can expand much in the next few years because of feedstock limitations.”
John Kruse, the principal and director of quantitative analysis of World Agricultural Economic and Environmental Services, told Biodiesel Magazine, “Although the U.S. biodiesel industry has demonstrated the ability to diversify its feedstocks significantly over the past few years, the feedstock issue continues to emerge as the primary reason for limiting the expansion of volume obligations for biodiesel.”
In the narrow focus of biodiesel and renewable diesel feedstocks, Kruse said distillers corn oil (DCO) is a prime example of a new and growing source. “While many [ethanol] plants already have extraction capabilities in place, the growth is occurring through enhanced extraction yields,” Kruse said. “We see corn oil extraction yields growing nearly 45 percent over the next five years.”
Furthermore, Kruse said along with DCO, other fats and oils are used primarily as an energy source in livestock rations. “With the significant decline in feed grain prices, there is a large supply of less expensive sources of energy available for livestock feed. We expect to see some substitution away from the use of oils in livestock rations as an energy source.”
Soybean oil provides roughly 50 percent of U.S. biodiesel feedstock, and as Kruse pointed out, U.S. soybean yields have been at record levels the past four years, further increasing the supply of soybean meal and oil. “Sometimes it is forgotten that soybean oil is primarily a byproduct of soybean crush and that the soybean market has and will continue to be driven by the demand for soybean meal,” he said. “There continues to be no shortage of protein meal demand in the global marketplace with growing meat consumption and the historical underutilization of protein meal in livestock rations. Developing countries with the strongest income growth tend to demand poultry and aquaculture products, which are produced with protein-intensive rations. The strong demand for meals results in increased supply of soybean oil.” Overall, Kruse said an abundant and expanding supply of vegetable oils exists.
Biodiesel from virgin soybean oil reduces GHG emissions by more than 50 percent compared to petroleum diesel, according to EPA data, and when made from waste materials such as used cooking oil, biodiesel can achieve more than 80 percent GHG reductions.
“It is ironic how quickly it has been forgotten that prior to biofuels, the agricultural industry was focused on developing new sources of demand for its products,” Kruse said. “With brief exceptions—biofuels as the most recent example—agriculture has struggled the past century with falling real commodity prices. Falling real commodity prices results from supply outpacing demand. Yet even with record global stocks for most commodities and significantly lower commodity prices, there is a lingering perception of scarcity.”
Read the original story: GAO RFS Reports Paint Incomplete Picture of Advanced Biofuels
December 1, 2016
By Ann Bailey
Several associations sent a letter this week to Gina McCarthy, EPA administrator, expressing their unified support for keeping the Renewable Fuel Standard program’s point of obligation unchanged.
The associations, made up members of the bioenergy and energy industries, said in the letter, that while they each have unique, and often conflicting, positions regarding the broader RFS program, they are one in their opposition to move the point of origin for RFS compliance. The letter was signed by the Advanced Biofuels Association, American Petroleum Institute, Growth Energy, Association for Convenience & Fuel Retailing, NATSO, Petroleum Marketers Association of America, Renewable Fuels Association and Society of Independent Gasoline Marketers of America.
“Each of the undersigned associations strongly supports the Environmental Protection Agency’s proposed denial of petitions for a rulemaking to change the point of obligation under the RFS. There is no sound public policy rationale for moving the point of obligation and further, such a change would add complexity and uncertainty to the current RFS program,” the letter said. “We urge EPA to finalize its conclusion and deny the petitions to move the point of obligation,” said the letter representing the eight organizations.
Growth Energy CEO Energy Skor reiterated her association’s support of the current RFS point of obligation in a statement released after the letter to the EPA was sent.
“The point of obligation, as outlined under the RFS, is doing exactly what it is designed to do, incentivizing marketers to blend additional biofuels and encouraging the availability of higher-level ethanol blends to retailers who wish to sell them,’ Skor said. “The bottom line is that the current point of obligation encourages consumer choice and cost savings at the pump, and any change would undermine the continued success of the RFS and reward those parties who have refused to comply with the intent of the law.”
The Advanced Biofuels Association said in a statement it also strongly supports EPA’s recent published proposed rejection of the waiver request to move the point of obligation.
“For us it is a Trojan horse intended to undercut and punish those companies who made investments to be able to blend the mandated fuels under the Renewable Fuels Standard,” said Michael McAdams, ABFA president. “It would create more uncertainty, be harder to enforce and discourage and reduce levels of current blending. As for the group of so called “savvy” business guys, sometimes being too cute by half comes at a price. Time to make investments for the future, rather than simply try and escape your commitment to blend renewable sustainable fuels.”
Read the signed letter here.
Read the original story: Groups Letter to EPA: Don't Change RFS Program Point of Obligaton
November 30, 2016
More than 80 percent of new 2017 model year (MY) vehicles are explicitly approved by the manufacturer to use 15 percent ethanol blends (E15), according to an analysis of warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA). That is up from last year, when approximately 70 percent of MY2016 vehicles were approved by automakers for the use of E15.
For the first time, Hyundai Motor Company has approved the use of E15 in MY 2017 Hyundai and Kia vehicles, joining the majority of its auto competitors. Together, Hyundai and Kia represent slightly more than 8 percent of the U.S. light-duty automobile market.
In 2012, EPA approved the use of E15 in vehicles built in MY 2001 or later. However, auto manufacturers did not retroactively endorse the use of E15 in legacy vehicles that were already on the road.
Other key points from RFA’s analysis include:
The Detroit Three (Chrysler, General Motors and Ford), which collectively represent 45 percent of U.S. market share, all clearly allow E15 in their vehicles. GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined the following year and Chrysler began E15 approval with its MY 2016 vehicles.
Other automakers explicitly offering E15 approval for MY 2017 vehicles include Honda, Toyota, Volkswagen Group, and Tata Motors (maker of Land Rover and Jaguar). Altogether, auto manufacturers with approximately 81 percent of the U.S. market share now approve the use of E15 in their MY 2017 vehicles.
With 9 percent of the U.S. market share, Nissan Motor Corporation remains the largest vehicle manufacturer that does not explicitly approve E15 in its vehicles. Despite announcing earlier this year that it is developing a vehicle powered by an ethanol fuel cell, the automaker only approves the use of E10 in its vehicles. Curiously, Nissan approves the use of gasoline containing up to 15 percent MTBE, a toxic additive that is banned in more than two dozen states.
Mazda, Subaru and The Daimler Group (maker of Mercedes-Benz) also continue to exclude E15 from fuel approvals and warranty statements. Together, these three manufacturers own about 7.5 percent of the U.S. market share.
Of note, BMW Group’s Mini vehicles again allow the use of 25 percent ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25 percent, i.e., E10 or E25, may be used for refueling.”
While neither automaker approves the use of E15, both Mercedes-Benz and Nissan produce some flex fuel vehicle models that are capable of operating on up to 85 percent ethanol blends (E85).
RFA estimates that approximately 25–30 percent of the 230 million vehicles on the road today are clearly approved by the automaker to use E15. Meanwhile, roughly 90 percent of vehicles on the road were built in 2001 or later, meaning they are legally approved by EPA to use E15.
“This analysis demonstrates that automaker acceptance and approval of E15 continues to expand rapidly,” said RFA President and CEO Bob Dinneen. “More than four out of every five new vehicles carries the manufacturer’s explicit endorsement of E15, putting to rest the myth propagated by the American Petroleum Institute that automakers don’t allow or warranty the use of this lower-cost, higher-octane fuel blend. We applaud Hyundai for joining the ‘E15 Club’ with its model year 2017 vehicles, and we’re thrilled to see Mini going above and beyond to offer E25-compatible vehicles. At the same time, we encourage Nissan, Mazda, Subaru and Daimler to get with the times and offer their customers greater freedom and flexibility when it comes to making a fuel choice at the pump.”
E15 is sold today at nearly 400 retail stations in 28 states, including major chains such as Sheetz, Thorntons, RaceTrac, Kum & Go and Murphy USA.
The RFA analysis can be found here.
Read the original story: RFA Analysis: Automakers Approve E15 in More than 80% of New 2017 Vehicles
November 24, 2016
By Mike Hughlett
The Obama administration has mandated a record amount of biofuel use in 2017 — a victory for the ethanol industry, which counts Minnesota as one of its top producers.
The U.S. Environmental Protection Agency Wednesday finalized an annual rule that sets volume requirements for biofuel in the nation’s motor fuel supply. The agency set the total renewable fuel requirement for 2017 at 19.28 billion gallons, up 6.4 percent over 2016 and higher than the EPA’s original proposals this spring.
For 2017, the EPA is mandating the use of 15 billion gallons of conventional biofuel, which is primarily corn-based ethanol. It marks the first time the agency has mandated the 15 billion-gallon statutory maximum for conventional biofuels, which was established by Congress a decade ago.
“We were very pleased today,” said Minnesota Sen. Amy Klobuchar, a member of the Senate Committee on Agriculture who has worked with farm groups to help push for greater biofuel usage. “It’s kind of a Thanksgiving surprise.”
The EPA is required to set targets by the Renewable Fuel Standard, with annual mandates for how much ethanol and biodiesel need to be blended with gasoline and diesel.
The program, signed into law by President George W. Bush, was designed to curb greenhouse gas emissions, promote energy independence and boost rural economies.
The EPA on Wednesday also increased its usage mandates for biomass-based diesel fuel, advanced biofuel and cellulosic biofuel — all three of which are far smaller sources of biofuel than ethanol.
The Renewable Fuel Standard regularly sparks battles between the oil industry and the ethanol industry. Reactions to Wednesday’s decision were no different.
Chet Thompson, president of the American Fuel and Petrochemical Manufacturers, told Bloomberg News that the 2017 targets are “completely detached from market realities.”
The ethanol industry is a big market for corn growers, and Minnesota is the nation’s fourth largest corn growing state.
“This certainly helps,” Harold Wolle, president of the Minnesota Corn Growers Association, said of the 2017 mandate. “We have been fighting to get the renewable obligations up to the statutory limits for a number of years.”
Minnesota has about 20 ethanol plants, mostly in the state’s southern half. The state is the nation’s fourth largest ethanol producer, churning out 1.16 billion gallons of biofuel per year, according to the Minnesota Bio-Fuels Association.
Most U.S. gasoline mixed with ethanol is E10, which contains 10 percent of the biofuel.
Read the original story: New Federal Mandate a Victory for Minnesota's Ethanol Producers
November 25, 2016
By Erin Voegele
The U.S. EPA has released renewable identification number (RIN) generation data for October, reporting that nearly 1.66 billion RINs were generated during the month, including nearly 17.79 million cellulosic RINs.
Nearly 17.56 million D3 cellulosic biofuel RINs were generated during the month, bringing the net total for the first 10 months of the year 142.82 million. Nearly 3.05 million D3 RINs have been generated for ethanol, with 85.47 million generated for renewable compressed natural gas and 56.14 million for renewable liquefied natural gas. Nearly 129.16 million D3 RINs have been generated domestically, with 15.5 million generated by importers.
According to the EPA, 229,819 D7 cellulosic diesel RINs were generated in October, bringing the net total for the first 10 months of the year to 227,424. A total of 456,975 D7 RINs have been generated so far this year, with a 229,551 error correction. All D7 RINs generated so far this year have been generated for cellulosic heating oil by importers.
Nearly 17.1 million D5 advanced biofuel RINs were generated in October, bringing the net total for the first 10 months of the year to 84.99 million. Nearly 56.89 million D5 RINs have been generated for ethanol, with 20.2 million generated for naptha, 118 million for heating oil, and 6.81 million for nonester renewable diesel. So far this year, 50.69 D5 RINs have been generated domestically, with 34.39 million generated by importers.
More than 1.29 billion D6 renewable fuel RINs were generated in October, bringing the net total for the first 10 months of the year to 12.59 billion. Most, 12.24 billion, were generated for ethanol, with 236.59 million generated for nonester renewable diesel and 126,227 generated for butanol. Nearly 12.23 billion D6 RINs have been generated domestically, with 140.87 million generated by importers and 236.59 million generated by foreign entities.
Nearly 224.27 million D4 biomass-based diesel RINs were generated in October, bringing the net total for the first 10 months of the year to 3.09 billion. The majority, 2.52 billion, were generated for biodiesel, with 571.43 million generated for nonester renewable diesel and 1.82 million for renewable jet fuel. More than 2.27 billion D4 RINs have been generated domestically, with 560.75 million generated by importers and 260.48 million generated by foreign entities.
As of the close of October, the EPA reports a total of 15.93 billion RINs have been generated so far this year, with 645.14 million retired, 882.94 million locked and available and 14.1 billion unlocked and available.
Read the original story here: EPA: Cellulosic RIN Generation Reaches 17.79 Million in October
November 23, 2016
Press Release
Many American farmers are thankful today for an Obama administration decision to boost the amount of renewable fuels, such as made from corn and soybeans, in the country's gasoline and diesel supply.
The Wednesday, Nov. 23 announcement was a turnaround for the Environmental Protection Agency, which earlier planned to require less renewable fuel to be mixed with gas and diesel.
"During a tough time in farming and low commodity prices, we couldn't have better Thanksgiving news for our corn and soybean farmers and the thousands of people are who are in biofuels in Minnesota," U.S. Sen. Amy Klobuchar, D-Minn., told Forum News Service.
Much of corn from Upper Midwest farms is used to make ethanol, which is blended with gasoline to raise octane and lower emissions. Similarly, soybean oil is blended with diesel fuel.
Klobuchar, a member of the Senate Agriculture Committee, said the EPA's announcement follows congressional intent, unlike preliminary proposals. "They did the right thing. ... Gradually, they have gotten this rule better."
President-elect Donald Trump often has said that he supports ethanol, particularly when campaigning in Iowa. However, he has not been specific about what he would do about renewable fuels.
Trump has expressed strong support for the American oil industry, which often is at odds with ethanol and biodiesel.
President Barack Obama's agriculture secretary told Bloomberg News that he thinks Trump will continue renewable fuel standards.
"There's going to be a lot of saber-rattling, but it supports too many jobs and too much rural infrastructure is set up for it," Vilsack said. "The Renewable Fuel Standard is solid."
Sen. Heidi Heitkamp, D-N.D., called the Wednesday announcement good news for her state.
"Ambitious blend levels are critical to supporting North Dakota's biofuels industry because it supports good-paying jobs, increases our energy security, and creates clean, reliable fuel," Heitkamp said.
The EPA is required by law to set fuel blending levels annually so biodiesel and ethanol producers can plan for the future, Heitkamp said, but the agency failed to do so for years.
The EPA set the target for total renewable fuel use at 19.28 billion gallons for 2017. That includes 15 billion gallons for conventional biofuel, which is mainly corn-based ethanol, and 4.28 billion gallons for the advanced biofuels mandate.
The final plan is up from the 18.8 billion gallons the agency proposed in May and marks a 6 percent increase from this year. While many anticipated an increase for the conventional fuel target, that increase alongside the boost for advanced biofuels was more than many expected.
The increase to 15 billion gallons for the conventional biofuels target marked a victory for the U.S. ethanol industry, after years of battling regulators to increase the mandates to levels laid out by Congress in 2007.
"The move will send a positive signal to investors, rippling throughout our economy and environment," said Bob Dinneen, president and chief executive officer of the Renewable Fuels Association.
In Sioux Falls, S.D., the CEO of one of the largest ethanol companies was happy.
"The grain ethanol industry is ready and able to meet its obligation under the Renewable Fuel Standard, and today's rule from the EPA reflects that reality," Jeff Broin of POET said. "I commend the EPA on holding firm to the letter of the law despite enormous pressure from oil interests."
After the announcement, shares in oil companies Tesoro, Valero Energy and HollyFrontier were down while shares of biofuels producers Green Plains and Pacific Ethanol rose.
Read the original press release: Klobuchar on Obama's Renewable Fuel Requirement: 'We couldn't have better Thanksgiving news'
November 28, 2016
By Jeff Rice
There aren't many bright spots in agriculture these days; most experts agree it will be at least 2018 before commodities prices turn around, and even then it will be slow and sporadic. But there is one light of hope, a beacon that glows brightly at the east edge of Sterling and helps provide a little more price stability than would otherwise exist.
Mark Sponsler, executive director of Colorado Corn Growers Association, told the Journal-Advocate a week ago he believes the price of corn would be a dollar a bushel lower if not for the demand for ethanol, and he credited ethanol producers with providing long-term stability for corn prices.
Dave Kramer is flattered by Sponsler's assessment, but says the effect is a little inflated. "I'd say it's about half that, if even that much. Maybe 40 cents a bushel," he said.
Kramer is CEO and founder of Sterling Ethanol LLC, which has plants in Sterling and Yuma, and in Bridgeport, Neb. And if Kramer seems overly modest about his industry's impact on corn prices, he's perfectly willing to accept credit when credit is due. After all, the Sterling-based plants provide more than three-fourths of the ethanol used in the gasoline sold in Colorado and surrounding areas. Anyone who has been stuck in traffic on southbound I-25 in Denver on a Monday morning can quickly figure out, that's a lot of ethanol.
Most people know ethyl alcohol most intimately as the stuff that makes us funnier, better-looking, smarter, and generally more likeable when imbibed in moderate quantities. But its value as an internal combustion fuel has been recognized since the invention of the internal combustion engine. More recently, it was recognized as an additive to help those engines burn cleaner, but large-scale production was more expensive than the other additives.
The nascent ethanol industry bloomed suddenly after the implementation of the Energy Policy Act of 2005. But while the provisions of the legislation had mostly to do with subsidizing and incentivizing energy production, including alternative energy sources, Dave Kramer saw the opportunities a little differently. After a couple of decades in the livestock feed business, Kramer's employer was bought out by a competitor, and he suddenly found his employment options to be, as they say, limitless.
"I got investors together from the corn and cattle industries and from other related areas, and we approached this as a feed mill that produces ethanol," Kramer said. "The wet distiller's grain that we produce is easier for cattle to process."
According to Kramer's figures, feed corn normally contains about 12 percent protein and 4 percent fat. But when it's ground and processed to produce ethanol, the distiller's grain contains about 33 percent protein and 10 percent fat. All that's taken out is the starch, which cattle don't use anyway. The result is cattle feeders paying less for the corn they can feed.
"We estimate that (distiller's grain) reduces the cost of cattle feeding by anywhere from five to 10 cents per pound of gain," Kramer said. When you consider that weight gain over the feedyard life of an average beef animal is about 92 cents per pound (according to the University of Arkansas) even a nickel a pound is a respectable savings.
One reason the distiller's grain from Sterling Ethanol's plants is so economical is that the plants are what Kramer calls "origin and destination" facilities. An origin plant, he explained, is one that takes in corn from local sources and then ships the ethanol and dried feed product to distant customers; a destination plant takes in corn from distant sources and sells the products locally.
"We're a combination of those," Kramer said. "We take in corn from local sources in Colorado and Nebraska, and we sell the products locally in Colorado and Wyoming."
Because the feed product is used locally, there's no need to dry it before shipping, which saves the considerable energy costs of drying the product. That means less energy used by the plant resulting in a lower cost for the feed.
And speaking of saving energy, the Sterling plants produce some of their own electricity from waste steam. Each of the three distilleries has its own steam turbine, which produces about a megawatt of electricity to be used in the plant. It saves about $60,000 a month in operating costs.
"We have the lowest carbon scores of any ethanol plants in the U.S.," Kramer said.
And then, of course, there's all that ethanol. After all, Kramer's investors saw their opportunity to build a state-of-the-art feed mill come from a piece of legislation that was meant to spur energy independence in the United States.
Part of that legislation is an incentive to goose production of a replacement for methyl tert-butyl ether (MTBE), a fuel additive that prevents engine knock and lowers harmful exhaust emissions from internal combustion engines. And while the billions of dollars in tax incentives and outright subsidies did give the industry a bit of a boost, it was not one the Sterling company took advantage of. In only seven months, Sterling Ethanol's investors had the $52 million plant up and running. And while Kramer is reluctant to divulge hard numbers on the company's finances, he does say that it is profitable and looks to stay that way for a very long time.
Sterling Ethanol turns 51 million bushels of corn into 165 million gallons of ethanol in its three plants each year. With the 48 million gallons produced by the plant owned by Front Range Energy in Windsor, that's enough to supply the gasoline blending stations in Denver, Cheyenne, and Colorado Springs. In other words, virtually all of the ethanol burned in Colorado is from Colorado, and most of it is from Sterling Ethanol plants.
While they're at it, the company employs 26 full-time people and pumps about $2 million in paychecks into the local economies.
As good as all of that is, however, there's bound to be a down side to ethanol, isn't there?
Well, yes ... or rather, there might have been.
At one time.
But not really.
Read the original story: Ethanol Provides a Bright Spot in Dismal Ag Picture
More...
Environmental Protection Agency
November 23, 2016
Rule Summary:
EPA finalized the volume requirements and associated percentage standards that apply under the RFS program in calendar year 2017 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. EPA also finalized the volume requirement for biomass-based diesel for 2018.
The final volumes represent continued growth over historic levels. The final standards meet or exceed the volume targets specified by Congress for total renewable fuel, biomass-based diesel, and advanced biofuel.
| 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|
| Cellulosic biofuel (million gallons) | 33 | 123 | 230 | 311 | n/a |
| Biomass-based diesel (billion gallons) | 1.63 | 1.73 | 1.9 | 2.0 | 2.1 |
| Advanced biofuel (billion gallons) | 2.67 | 2.88 | 3.61 | 4.28 | n/a |
| Renewable fuel (billion gallons) | 16.28 | 16.93 | 18.11 | 19.28 | n/a |
Total renewable fuel volumes grow by 1.2 billion gallons from 2016 to 2017, a 6 percent increase.
Advanced renewable fuel – which requires 50 percent lifecycle carbon emissions reductions – grow by roughly 700 million gallons between 2016 and 2017.
Non-advanced or “conventional” renewable fuel increases in 2017 meet the 15 billion gallon congressional target for conventional fuels.
The standard for biomass-based biodiesel – which must achieve at least 50 percent lifecycle greenhouse gas emission reductions compared to petroleum-based diesel – grows by 100 million gallons. The required volume of biomass-based diesel for 2017 is twice as high as the minimum congressional target.
Cellulosic biofuel – which must achieve at least 60 percent lifecycle greenhouse gas emissions reductions – grows by 35 percent over the 2016 standard.
The advanced biofuel standard – which is comprised of biomass-based diesel, cellulosic biofuel, and other biofuel that achieves at least 50 percent lifecycle greenhouse gas emissions reductions – increases by 19 percent over the 2016 standard.
Rule History:
On May 18, 2016, EPA proposed the volume requirements and associated percentage standards that would apply under the RFS program in 2017 for cellulosic biofuel, advanced biofuel, and total renewable fuel. EPA also proposed the volume requirement for biomass-based diesel for 2018.
Additional Resources:
Final rule: Renewable Fuel Standard Program: Standards for 2017 and Biomass-Based Diesel Volume for 2018 (PDF)
Read the original release: Final Renewable Fuel Standards for 2017, and the Biomass-Based Diesel Volume for 2018
November 21, 2016
By Joanna Schroeder
As more and more consumers choose ethanol at the pump, Bobby Likis, host of Bobby Likis Car Clinic, says there is a continued need to educate mechanics about ethanol. Likis is a 45-year auto veteran who in his shop has worked on more than 200,000 cars and he loves ethanol. He said that most car problems are not caused by ethanol, but by neglect. Likis and I spoke in-depth about ethanol and technicians and following is our discussion.
Q1: How well-versed are today’s auto mechanics when it comes to ethanol fuels?
A: Likis said there is a no question that there is a need for higher education levels around ethanol although states with direct ties to ethanol and agriculture tend to have technicians better informed about the biofuel.
Q2: How familiar are technicians with the basics of ethanol and its assets?
A: Likis said there-in lies the problem. “Most technicians are not even informed about the basics of ethanol,” he replied. “They have been so bombarded by myths promoted by oil companies or uneducated individuals who promote totally unfounded horror stories, that unfortunately many technicians have accepted this water tool fiction as truth.” Ethanol, notes Likis, then becomes an easy blame for technicians who haven’t yet learned or embraced the facts.
The challenge is not only with technicians, Likis continued. “There are many aftermarket companies that prey on unknowing consumers fear and use the ethanol ruins engines myth as a means to sell their pour and pray products.” What exactly are those? Likis explained, “The pour and pray products concept is where people are enticed to buy a product, such as a fuel conditioner, pour it in their gas tank and pray that it fixes their car’s problem.” Likis added, “Cars don’t need to be protected from ethanol, cars love ethanol!”
Q3: As the auto industry moves to achieve 2025 CAFE Standards of 54.5 mpg, how do/should the industry, or others, keep auto technicians informed about these changing technologies such as higher blends of ethanol?
A: Likis answered that car companies are spending billions of dollars to meet these standards. He said they are moving towards success every day by designing smaller, down speeding, high compression ratio engines that deliver higher mpg and torque with fewer emissions. In the industry its called power density. “To reach the full potential of these engines, we need higher blends of ethanol,” said Likis. A great example is Ford’s Eco-Boost engines.
The real question, said Likis, is how do we educate technicians about ethanol facts? He has delivered ethanol technician modules and his Car Clinic team has developed a series of 60 second features named “Calling all Technicians with 20 Facts About Ethanol.” These are aired during his national broadcast and he shares them with his customers. He said that ethanol and biofuel training needs to be integrated into all technician training curriculum in tech schools and colleges.
Q4: What is the future of ethanol and engines?
A: Cars have been using ethanol since the 1970’s and manufactured to run on ethanol since the 80s, said Likis. Today nearly 80 percent of cars can legally run using E15. “There is no reason why we should not be going forward with ethanol. That’s the future. In order to do that I think we need to start with a younger generation of technicians,” Likis answered. These include programs like his and through the National Alternative Fuels Training Consortium, through seminars and even, perhaps, through tool companies that travel shop-to-shop and visit with technicians.
Likis adds, “We as technicians need to help our colleagues better understand ethanol.”
Bobby leaves us with some positive thoughts. “It’s a bright future. Ethanol is a better fuel for internal combustion engines, than crude-based gasoline. Ethanol helps to clean the air, cleans the engines, provides domestic jobs, reduces our nation’s dependence on foreign regimes. Indeed, ethanol is made in America from American resources and is the cheapest and best octane and oxygenate on the planet!
Read the original story: Car Clinic’s Bobby Likis Talks Ethanol & Mechanics
November 21, 2016
By Joan Koka
Researchers at the U.S. Department of Energy’s (DOE’s) Argonne National Laboratory have conducted a detailed study of the reflectivity effects of converting land to grow biofuel crops.
Their study is part of an overall analysis of greenhouse gas emissions from land use change: instances where land that was previously forests, grasslands or pastureland is converted to producing biofuel crops. Historically, these types of analyses considered only changes in the amount of carbon stored in the soil and vegetation of these lands.
The new analysis, published in The Royal Chemistry Society's Energy & Environmental Science, incorporates the additional effect of changes in reflectivity, or “albedo.” Albedo effects sum up the amount of incoming solar energy that gets reflected back into space; these changes, along with numerous other factors, in turn contribute to changes in greenhouse gas emissions.
While there is much data variability, the findings reveal that when a piece of land is changed to produce a biofuel crop, albedo effects also changed. When only albedo change effects are considered, researchers found that land converted to producing corn ethanol had a net cooling effect on climate. By comparison, land that was converted to producing miscanthus and switchgrass, two other plant sources for next-generation biofuels, had a net warming effect. But when carbon stock changes, another key effect of land use change, are also taken into account, corn and switchgrass ethanol exhibit net warming effects associated with land use change whereas miscanthus grass ethanol exhibits a net cooling effect.
Led by researchers in Argonne’s Energy Systems and Environmental Sciences Divisions, the work outlines the importance of considering changes in reflectivity when assessing land use change-induced effects of biofuel production on climate.
“Our analysis is helping build a fuller picture of the climate effects of biofuel feedstock production,” said Hao Cai, an Argonne environmental analyst and lead author of the study.
Cai and his team began their research by first collecting data on land cover and albedo gathered from the U.S. Department of Agriculture and NASA satellites, respectively. They mapped the albedo data associated with specific land types—say, corn cropland or prairie. Then they ran simulations where they converted different land types to produce corn, miscanthus and switchgrass, and looked to see what would happen to albedo and to the net cooling or warming of the atmosphere as a result.
Unlike past studies of albedo effects of land use change, which analyzed no more than 20 sites of specific land types, the team investigated millions of sites in more than a thousand counties in the U.S., covering 70 percent of the nation’s corn production fields.
“Another factor that sets this study apart is the specific modeling approach used to simulate albedo effect on a finer scale and provide more robust data analysis,” said Yan Feng, an atmospheric and climate scientist involved in the study.
The model allowed Feng and fellow researchers to examine the albedo dynamics of millions of parcels of land individually in squares just 500 meters at a side (5382 feet).
By analyzing a large number of sites in detail, the researchers were able to take into account site-specific variations to better represent albedo effects in their analysis. Albedo effects varied among corn, miscanthus and switchgrass crops in part due to differences in their size and shape, as well as growth and environmental factors—all of which can vary dramatically from one site to the next.
Albedo also varied considerably based on the type of land that was converted. For example, forest had the lowest albedo compared to other land covers, like shrubland and grassland, found within the same agro-ecological zone.
The magnitude of the area of land converted, as determined by economic modeling, also varied. For example, when the researchers compared miscanthus and switchgrass production necessary to produce a given biofuel volume, they found that converting land to miscanthus had a lower warming albedo effect compared to switchgrass. One cause for this is the fact that miscanthus requires less land than switchgrass to yield an equal volume of ethanol because miscanthus has higher yields.
The researchers used computing resources at the Argonne Leadership Computing Facility (ALCF), a DOE Office of Science User Facility, to process and visualize the albedo and land cover data.
“ALCF’s high-performance computing resources were critical to our analysis based on the amount of data we were working with. The facility provides powerful and helpful tools for data-intensive analyses like this,” said Jiali Wang, an Argonne atmospheric scientist involved in processing the data.
The study, “Consideration of land use change-induced surface albedo effects in life-cycle analysis of biofuels,” was supported by the DOE’s Office of Energy Efficiency and Renewable Energy.
Read the original release: Argonne Researchers Study How Reflectivity of Biofuel Crops Impacts Climate
November 20, 2016
By Bloomberg
The politically contentious Renewable Fuel Standard will survive a Donald Trump administration because ethanol is too well-established in rural areas to be dismantled, Agriculture Secretary Tom Vilsack said.
"There’s going to be a lot of saber-rattling, but it supports too many jobs and too much rural infrastructure is set up for it," Vilsack said in a Nov. 18 interview that also covered subjects such as trade and immigration. "The Renewable Fuel Standard is solid."
The U.S. Environmental Protection Agency is due to decide whether to raise its targets for national biofuels consumption from 14.5 billion gallons in 2016, bringing it more in line with the 15 billion-gallon mandate envisioned in energy legislation passed in 2007. Ethanol has been criticized for raising food and feed costs, but has been a boon for corn-growers and domestic jobs.
President-elect Trump told the Iowa Renewable Fuels Association earlier in 2016 that the U.S. should increase ethanol mandates, but in September his campaign published a fact sheet calling for removal of the biofuel blending credit system. His campaign later reissued the fact sheet without the language opposing the system. Vilsack, speaking in his U.S. Department of Agriculture office in Washington, said rural support for the rest of the RFS would be enough to withstand attacks on it from other quarters. "I think it will be very difficult for it to be repealed," he said.
Vilsack, the only member of President Barack Obama’s original cabinet still in his post, said U.S. agriculture is in good shape heading into 2017, despite lingering crop surpluses that have pushed down prices.
"Producers will make different decisions, and over time the surplus will be whittled down, and there will be a weather disaster someplace," said the former governor of Iowa. "I think the arrow is still pointing up."
But his successor may need to buck Trump on trade and immigration. Those
issues, on which the Republican candidate campaigned for more restrictive policies, are too important for agricultural prosperity to ignore, Vilsack said. He added that less regulation and lower taxes, two areas farmer groups have welcomed as they look forward to a Trump administration, are less important.
The U.S. "can’t declare war on China and Mexico, our number one and number three partners, and not be for immigration, which provides us with our workforce," he said. "You can do away with the EPA tomorrow. You can do away with what you call the ‘death tax’ tomorrow. But if you don’t a have a market, and you don’t have a workforce, what difference will it make?"
Vilsack, 65, said he doesn’t know what his plans will be after he leaves office.
Read the original story: Renewable Fuel Standard 'Solid' Through Trump Era, Vilsack Says
November 16, 2016
By Erin Voegele
The White House has published a mid-century strategy on decarbonization that addresses biofuels and bioenergy. On Nov. 16, the report was filed with the United Nations Framework Convention on Climate Change under the Paris climate deal.
The White House committed to release the strategy, titled “United States Mid-Century Strategy for Deep Decarbonization,” in March. At that time, the administration made a joint statement with Canada that indicated the two countries would work together to implement the Paris agreement as soon as feasible. In addition to implementing their respective Intended Nationally Determined Contributions, the leaders of both countries also committed to completing mid-century, long-term low greenhouse gas emission development strategies pursuant to the agreement.
The mid-century strategy spans more than 100 pages and lays out a national U.S. strategy to deeply decarbonize the economy by 2050, aiming to net GHG emissions reductions of 80 percent or more below 2005 levels by 2050. “The MCS demonstrates how the United States can meet the growing demands on its energy system and lands while achieving a low-emissions pathway, maintaining a thriving economy, and ensuring a just transition for Americans whose livelihoods are connected to fossil fuel production and use,” said the White House in the report. “It also shows how the momentum of technological progress created by global commitments to low-carbon innovation and policies will enable increasingly ambitious climate action from all countries.”
Regarding biofuels, the report notes U.S. government-funded research, development, and demonstration (RD&D) has played a foundational role in spurring technological advances throughout the last century. “With the full power of U.S. RD&D efforts unleashed on clean energy technologies, consistent with the Mission Innovation commitment to double clean energy RD&D spending, we can develop new technologies that will increase the pace and reduce the costs of decarbonization,” said the White House in the strategy. “In addition, potential high impact technologies such as CCUS, advanced nuclear, and second generation biofuels are in early stages of development or commercial deployment; to achieve meaningful scale by mid-century, deployment programs may be needed to bring the first set of commercial-scale facilities to market.”
The report also calls for increased support for public and private research, development, demonstration and deployment (RDD&D), noting that different sectors and technologies come with different priorities and needs with respect to RDD&D, as well as different approaches for government support. “For certain technologies at early stages of commercial deployment like carbon capture and storage, second generation biofuels, and emerging advanced nuclear energy, support programs can bring the first set of commercial-scale facilities to market, driving cost reductions through learning and economies-of-scale,” the White House said in the report. “Supporting a broad range of technologies is likely to lower the costs of decarbonization because we do not know today how technologies will progress over many decades.”
Specifically, the report finds RDD&D investment opportunities to reduce biofuel production costs, improve production efficiency, develop drop-in fuels, co-optimize engines with low-carbon fuel to maximize performance and greenhouse gas reductions, and ensure biomass is produced and used in ways that are carbon beneficial.
The report also addresses carbon beneficial forms of bioenergy plus carbon capture and storage (BECCS), which is defined as any facility that combusts biomass for electricity or converts biomass to fuel and captures the resulting carbon dioxide for utilization or storage in underground reservoirs. The report notes BECCS can be utilized across power generation, industrial applications and biofuel production, and highlights once such project in Illinois that captures carbon dioxide from an ethanol plant and sequesters it underground. That project, known as the Decatur Project, captures pure CO2 from a nearby ethanol plant and stores it at pilot scale in a saline aquifer. The report also notes there are other examples of ethanol production plus carbon capture, utilization and storage (CCUS) for enhanced oil recovery. According to the report, BECCS for power production has not yet been tested at scale and its full negative emissions potential depends on the upstream land carbon effects of biomass production.
Within the report, the White House notes a significant portion of the document is devoted to actions needed in the land sector, including the development of carbon-beneficial forms of biomass and negative emissions technologies because they have not received as much in-depth treatment elsewhere. Biomass is seen as playing a particularly important role in energy uses that are difficult to electrify, such as aviation, long-haul trucking, and heat production in certain industrial sectors. Overall, the report states that for the mid-strategy strategy, biomass production in the range of 1 billion dry tons could be produced while maintaining the strategy’s land sector objectives, such as carbon sink, wildlife habit and sufficient food production, assuming efficient land management. “Carbon accounting protocols based on the most up-to-date science can ensure carbon beneficial forms of biomass, or only those sources that result in net reductions of CO2 to the atmosphere, are utilized to support U.S. decarbonization,” said the White House in the report.
“An illustrative 2050 land use scenario consistent with [mid-century strategy] goals, which could entail 50 million acres of forest expansion and 40 million acres of biomass production from 2015 areas, would need to be managed carefully,” states the report. “However, these changes can be made ecologically and economically feasible by focusing on opportunities to deliver multiple products and services on the same acre, including agroforestry, precision agriculture, and bioenergy crop-pasture rotational strategies. For example, in Iowa alone, an estimated 27 percent of cropland, or 7 million acres, may not be profitable in commodity crop production but could be well-suited to perennial grasses or agroforestry (Brandes et al. 2016). Focusing nationally on such areas could minimize land use competition and help increase rural landowner incomes while delivering environmental benefits like improved soil health and reduced nutrient runoff.”
The report addresses several other factors related to the production of biomass and its use in several sectors. It also outlines several specific possible scenarios for the nation’s energy future. A fully copy of the report can be downloaded from the White House website.
Read the original story: White House Decarbonization Report Addresses Biofuels, Biomass
November 16, 2016
Millions of Americans preparing for Thanksgiving next week are undoubtedly noticing that dinner will cost less than it did a year ago. According to the U.S. Department of Agriculture, overall grocery prices are roughly 2% lower than at this time last year, and prices specifically for poultry products — like turkey — are down 1.5% compared to last fall. Meanwhile, the amount of corn used for fuel ethanol is primed to set a new record in 2016, up roughly 3% from last year.
The Renewable Fuels Association (RFA), which released an independent analysis today on the impact of ethanol on food prices, says the current collision of falling food prices and record ethanol production should end the contrived “food vs. fuel” debate once and for all.
The new statistical analysis, conducted by Informa Economics IEG, retrospectively examined the effect of ethanol expansion on food prices, concluding that “…retail food prices were not impacted in any demonstrable way by expansion of U.S. grain ethanol production under the Renewable Fuel Standard (RFS) over the past decade.” In fact, the study finds that food price inflation has actually slowed during the “ethanol era.”
The analysis shows that growth in food prices slowed considerably after passage of the RFS2, with prices for groceries advancing at roughly half the rate seen prior to the program’s adoption. “Prior to the passage of RFS2, food away from home [e.g., restaurants] grew at an average of 3.4%, versus 3.2% for food at home [e.g., groceries]. After RFS2, food away from home grew at 2.6%, versus 1.8% for food at home,” the study found. “The increase in the food [consumer price index] actually decelerated as the usage of corn in ethanol production increased dramatically.”
The study also examines the impact of ethanol on corn prices, and in turn the impact of corn prices on retail food items. While the authors conclude that corn prices were positively impacted by ethanol expansion, higher corn prices did not necessarily translate into higher consumer food prices. “Statistical analysis shows that the link between corn prices and overall food prices has been weak,” according to the report, adding that changes in food prices are primarily driven by “…the costs of transforming farm products to retail grocery products, along with transportation and distribution at various levels of the supply chain.” The analysis shows that only 19% of consumer spending on food pays for the value of the farm commodities, with the remaining 81% paying for “…post-farm-gate activities (e.g., transportation, processing, marketing).”
Other factors that drive farm commodity and retail food prices were examined, with Informa concluding that core inflationary pressures, weather events (e.g., flooding and droughts), exchange rates, and energy prices all impacted commodity and food prices over the past decade. In fact, from 2009 to 2014, the impact of crude oil prices on consumer food price inflation was nearly nine times greater than the impact of corn prices.
“The U.S. ethanol industry is set to produce a record volume of high octane renewable fuel this year,” said RFA President and CEO Bob Dinneen “And at the same time, consumers are spending considerably less on food today than they did a year ago. Today’s lower food prices continue a trend of deceleration in food inflation rates that began nearly 10 years ago when the RFS2 was adopted. As the new Informa report clearly demonstrates, there is no discernible link between ethanol production and retail food prices — here in the U.S. or globally. It’s time to put an end to the ridiculous ‘food vs. fuel’ myth that has been propagated for far too long by self-interested opponents of biofuels and the RFS.”
View the analysis here.
Read the original story: New Report Knocks the Stuffing Out of ‘Food vs. Fuel’ Turkeys
November 14, 2016
Gevo, Inc. (NASDAQ: GEVO), announced that the first commercial flight using Gevo’s cellulosic renewable alcohol to jet fuel (ATJ) is expected to take place today originating in Seattle and flying to Ronald Reagan Washington National Airport.
Previously, on October 11, 2016, Gevo announced that it had completed production of the world’s first cellulosic renewable jet fuel that is specified for commercial flights. Gevo successfully adapted its patented technologies to convert cellulosic sugars derived from wood waste into renewable isobutanol, which was then further converted into its ATJ. This ATJ meets the ASTM D7566 specification allowing it to be used for commercial flights. The cellulosic ATJ was produced in conjunction with the Northwest Advanced Renewables Alliance (“NARA”). NARA supplied the sugars that were derived from forest residuals in the Pacific Northwest. Gevo produced the cellulosic renewable isobutanol in St. Joseph, Missouri. The cellulosic renewable isobutanol was then transported to Gevo’s biorefinery facility in Silsbee, Texas, where the cellulosic renewable isobutanol was converted into ATJ.
oday’s flight follows on the back of the two commercial flights that were flown by Alaska Airlines on Gevo’s ATJ in June of this year. The ATJ for the June flights was derived from isobutanol produced at the Gevo’s facility in Luverne, MN, using sustainable corn as the sugar feedstock.
Gevo believes that its renewable ATJ has the potential to offer the most optimized operating cost, capital cost, low carbon potential, feedstock availability, scalability, and translation across geographies, as compared to other renewable jet fuel options.
“This first of its kind flight demonstrates Gevo’s commitment and ability to convert next generation cellulosic feedstocks into fungible hydrocarbons. We are pleased that we had the opportunity to prove, through the NARA project, that cellulosic sugars from wood can be used to successfully make commercial jet fuel. We congratulate all of our fellow NARA partners and thank the U.S. Department of Agriculture, National Institute of Food and Agriculture, for its unwavering support in the pursuit of renewable jet fuel. I also thank Alaska Airlines, who continues to be a great partner,” said Pat Gruber, Gevo’s Chief Executive Officer.
Read the original story: Gevo (GEVO) Says Alaska Airlines to Fly Today on Its Cellulosic Renewable Alcohol to Jet Fuel
November 11, 2016
By NASCAR
NASCAR announced Nov. 11 that it will surpass 10 million competition miles on Sunoco Green E15, a biofuel blended with 15 percent American-made ethanol, by the end of the 2016 season. The achievement will be celebrated during the NASCAR Sprint Cup Series race at Phoenix International Raceway this weekend. The 10 million miles will have been accumulated across practice, qualifying and racing laps since the biofuel was adopted by the sport.
Six years ago, NASCAR entered into a groundbreaking partnership with Sunoco and American Ethanol, launching its long-term biofuels program to reduce emissions across its three national series. After an exhaustive analysis, Sunoco formulated Sunoco Green E15 to allow for a seamless transition, and the biofuel made its debut at Daytona International Speedway in 2011. All the ethanol for Green E15 is produced from American-grown corn at Sunoco’s ethanol manufacturing facility in Fulton, New York.
“As we approach 10 million miles on Sunoco Green E15 across our three national series, it’s evident that the renewable, higher ethanol blended fuel performs flawlessly against our rigorous racing conditions,” said Brent Dewar, NASCAR chief operating officer. “This remarkable milestone is the result of an industry-wide commitment to demonstrate high performance racing with reduced emissions, while educating our fans about the benefits of sustainable and renewable American ethanol.”
Since transitioning to the biofuel, NASCAR has helped validate the fuel’s qualities in front of an audience of millions of NASCAR fans and is helping shift attitudes and behaviors around the use of ethanol. According to new research conducted in July, when compared to non-fans, NASCAR fans are more likely to support the use of ethanol blended gasoline to fuel NASCAR race cars, their own car, and cars on the road today to increase U.S. energy independence. Source: Custom Environment-Related Tracker commissioned by NASCAR and conducted by Toluna (July 2016).
“We are thrilled to reach this important milestone with NASCAR and to be a part of the effort to reduce the sport’s impact on the environment with Sunoco Green E15, while increasing horsepower and standing up to the most demanding conditions on the track,” said Emily Skor, CEO of Growth Energy. “Like their favorite NASCAR drivers, consumers are now utilizing a fuel with a blend of 15 percent ethanol. Americans have already driven over 500 million miles on E15. Today, nearly 400 stations across 28 states sell E15 and those numbers continue to climb. Consumer demand is on the rise because Americans are finding out that E15 is the right choice for their engines, their wallets and the environment.”
The move to Sunoco Green E15 coincided with the incorporation of more technology into NASCAR race cars. In 2012, the NASCAR Sprint Cup Series transitioned from carbureted engines to electronic fuel injection using an electronic control unit (ECU)—the first computer technology used in a NASCAR race car. In addition, the series moved from analog gauges to a digital dashboard this season.
“As a lifelong fan and a proud team owner, I am certain that the switch to an ethanol blend has been a great move by NASCAR,” said Richard Childress, Chairman and CEO of RCR. “We’re proud of our connection to the ethanol industry and all of the good that it’s doing for our country, and could not be more pleased to celebrate passing 10 million miles with the industry.”
During the pace car laps at the start of the race on Sunday at Phoenix International Raceway, NASCAR fans at the start/finish line will be asked to participate in a coordinated American Ethanol green flag wave to help commemorate the 10 million-mile achievement.
The Chase for the NASCAR Sprint Cup will continue with the Can-Am 500 at Phoenix International Raceway on Sunday, Nov. 13 at 2:30 p.m. ET on NBC, MRN and SiriusXM NASCAR Radio.
Read the original story: NASCAR to Surpass 10 million Miles on Sunoco Green E15