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Ethanol Producer Magazine

January 5, 2016

By America's Renewable Future

America’s Renewable Future recently released its final candidate report card. The report card places each presidential contender into a good or bad category based on their support for the federal renewable fuel standard (RFS). ARF will use the report card to let more than 50,000 pledged caucus-goers and Iowans know which candidates will protect the state’s economy or which will be job killers. The tactics used will be a combination of grassroots and paid efforts.

Sen. Ted Cruz and Sen. Rand Paul stand out as the bad candidates on the report card, while the rest of the candidates on both sides of the aisle are graded as good. The report card designates a “good” candidate as one who has demonstrated support for the RFS and Iowa farmers and a “bad” candidate as one who has stood against Iowa farmers and the RFS.

The organization has gone after Cruz prior to the release of the report card on statewide radio for his hypocrisy on support for oil subsidies. The efforts will resume after the holidays. In addition to paid media, ARF’s grassroots organization covers the state’s 99 counties with 17 field staffers who have organized over 1,000 events around the state. From test plot events and RV stops at biofuel plants and co-ops to county fairs and farmers’ markets. From our urban centers in Des Moines and Cedar Rapids to the smallest rural towns, ARF has been getting its message out to Iowans. A message that’s resonating with Iowa caucus-goers with 61 percent of republicans and 76 percent percent of democrats saying they support the RFS.

“Ted Cruz is dangerous to Iowa and thousands of Iowa jobs,” said Eric Branstad, ARF state director. “Our economy depends on a strong RFS and Iowans count on $5 billion in wages thanks to it, Ted Cruz wants to kill their jobs and we are going to make sure every Iowan knows that.”

Read the original story: ARF Releases Candidate Report Card on RFS Support

Bloomberg

Dec 30, 2015

By Alan Bjerga

As Republican presidential candidate Ted Cruz prepares to launch a bus tour of Iowa next week, one influential state organization is working to ensure the U.S. senator from Texas isn't welcomed in the state's cornfields.

In its final candidate scorecard before Iowa kicks off the 2016 presidential race with its Feb. 1 caucuses, America's Renewable Future, an ethanol-advocacy group, reserved its harshest words for Cruz, describing the Republican who is leading Iowa's polls as a threat to the corn-based alternative fuel that has been a boon the state's economy. 

“Ted Cruz is dangerous to Iowa and thousands of Iowa jobs,” Eric Branstad, the group's leader and the son of Iowa's Republican governor, Terry Branstad, said in a statement. Referring to the Renewable Fuels Standard, a federal mandate on the amount of ethanol required in gasoline, the statement continued: “Our economy depends on a strong RFS, and Iowans count on $5 billion in wages thanks to it. Ted Cruz wants to kill their jobs, and we are going to make sure every Iowan knows that.”

Cruz was one of only two candidates rated “bad” by the group. The other was U.S. Senator Rand Paul of Kentucky, who has said he considers federal support for biofuels a form of corporate welfare. A bad rating was given to candidates who “stood against Iowa farmers and the RFS.”

All other Republican candidates, and all three Democratic contenders, got a good rating. That went to those who “demonstrated consistent support for the RFS and Iowa farmers,” according to the group, which boasts 17 field staffers working throughout the state.

Cruz has been the beneficiary of significant campaign contributions from the oil and gas industry, which has opposed ethanol's expansion. He has co-sponsored legislation that would repeal the Renewable Fuels Standard, the bedrock of government support for the industry. Earlier this year, Cruz touted his stance on the issue as proof that he won't pander to those in early-voting states.

Government support for biofuels has declined in recent years, with tax credits and pro-industry tariffs allowed to lapse as the industry has expanded.

Still, Iowa corn farmers rely on the fuel more than ever to help them cope: farm profits this year are expected to be the lowest since 2002. The state's 43 ethanol plants produced just over 4 billion gallons this year, up slightly from 3.9 billion last year. That's a new record for the biggest U.S. biofuel-producing state, the Iowa Renewable Fuels Association said this week.

Earlier this month, the latest Bloomberg Politics/Des Moines Register poll showed that the RFS is supported by 61 percent of those planning to participate as Republicans in the Iowa caucuses. 

Read the original story here : Iowa Ethanol Group Rolls Out The Un-Welcome Mat For Ted Cruz

Ethanol Producer Magazine

December 29, 2015

By Iowa Renewable Fuels Association

The Iowa Renewable Fuels Association recently announced that Iowa’s 43 ethanol plants produced over 4 billion gallons during 2015, up slightly from 3.9 billion gallons in 2014. Iowa continues to be the number one ethanol producing state, and is estimated to account for roughly 27 percent of national ethanol production in 2015. The increase came from efficiency gains and debottlenecking at existing plants, as well as ethanol production from cellulosic feedstocks such as corn stover and corn kernel fiber.

“While Iowa took a modest step forward in production this year, we have the corn supplies to really expand ethanol production,” said IRFA Executive Director Monte Shaw. “What we don’t have is access to the market for higher ethanol blends. The USDA blender pump grant program will help move the needle forward in 2016 and we hope the EPA will get the RFS back on track when they propose the RFS levels for 2017.  If we can crack the petroleum monopoly on fuel choice, it will benefit consumers, farmers and the environment.”

Iowa is the nation’s leader in renewable fuels production. Iowa has 43 ethanol refineries capable of producing 3.9 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

Read the original story: Iowa Sets Ethanol Production Record at 4 Billion Gallons in 2015

AgriMarketing

December 28, 2015

By Convenience Store News

Just a few years ago, some convenience store retailers and consumers alike were hesitant to sell and purchase E15 fuel, respectively, due to misfueling concerns and allegations that the blend of 15-percent ethanol and 85-percent gasoline could cause damage to vehicle engines. Today, the thought process about E15 has clearly changed, according to a new consumer survey conducted by Carbonview Research, a sister company of Convenience Store News.

During the Convenience Store News 2015 Fuels and Tech Summit, held earlier this week, Randi Etzkin, manager of client research for Carbonview, shared the results of its survey of 942 fuel decisionmakers aged 18-64 in eight Midwest cities ripe with E15 expansion. The research revealed:
•55 percent of respondents want to find out more about E15;
•44 percent find E15 "appealing;"
•35 percent want to use E15 for their car; and
•34 percent said E15 is "believable."

Etzkin acknowledged that price (cited by 71 percent of respondents) is the biggest factor consumers use to determine whether to purchase E15. If E15 - which carries an 88 octane - was sold at the pump at the same price as traditional E10 petroleum, 38 percent of those surveyed said they would likely buy the alternative fuel.

If E15 is priced 5 cents less than E10, 49 percent said they would likely buy E15, while a 10-cent difference would entice 60 percent of consumers to purchase E15 over E10.

Consumers also said they would be more likely to be loyal to the gas station that sold them E15. Fifty-seven percent of respondents said they would likely use the same gas station for their next fillup.

"People familiar with E15 think it is appealing, intriguing and a quality product," Etzkin said during her presentation.

On the flip side, those who said they would not purchase E15 cited performance and interest/need as the biggest reasons for not doing so.

The Carbonview executive did stress that the best way to advance the growth of E15 is by retailers educating consumers about the alternative fuel in any way possible.

E15 is currently offered in 175 locations throughout 19 states. It is approved for use in cars manufactured in the model year 2001 and newer.

The Convenience Store News Fuels & Tech Summit took place Dec. 7-8 at the Palm Beach Marriott Singer Island Beach Resort & Spa in Riviera Beach. The event was sponsored by Growth Energy, Warren Rogers and ZipLine.

Read the original story: Study Shows Consumers, Fuel Retailers More Positive on Ethanol

Renewable Fuels Association

December 21, 2015

An analysis of 2016 model year (MY)  warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA) shows that auto manufacturers explicitly approve E15 (15 percent ethanol 85 percent gasoline) use in more than 70 percent of new vehicles. This is up from 2015, when just over 60 percent of MY 2015 automobiles were clearly approved for E15.

RFA’s analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA’s decision means it joins the other members of the “Detroit Three” (General Motors and Ford) in unequivocally allowing E15. Other key points from RFA’s analysis include:

GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles.

More than 45 percent of the vehicles sold in the United States this year have been produced by the Detroit Three, according to industry data.

Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.

When flex-fuel vehicles (FFVs) produced by Nissan and Mercedes-Benz are included, RFA estimates the percentage of MY 2016 automobiles explicitly approved by manufacturers to use E15 is even larger (FFVs are approved to use up to 85 percent ethanol blends).

With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest “hold-out” when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that “E-15 fuel will adversely affect the emission control devices and systems of the vehicle,” which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol “can cause paint damage.”

Hyundai, Kia, and Subaru also continue to exclude E15 from their fuel recommendations. Together, these three foreign automakers account for about 11 percent of U.S. auto sales. While Subaru recommends that gasoline used in its vehicles contain “no more than 10% ethanol,” it allows the use of gasoline containing 15% MTBE—a toxic substance banned in dozens of states because of groundwater pollution concerns.

Interestingly, BMW’s MINI Hardtop appears to allow the use of 25% ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25%, i.e., E10 or E25, may be used for refueling.”

“This analysis should open some eyes and finally lay to rest the ridiculous myth that automakers do not allow the use of E15 in their vehicles,” said RFA President and CEO Bob Dinneen. “In fact, 2016 will be the fifth year in a row in which some auto manufacturers have explicitly included E15 in owners’ manuals and warranty statements as an approved fuel. With each passing year, more and more vehicles sold in the U.S. carry the manufacturer’s unequivocal approval for E15; and with each passing year, the auto warranty misinformation campaign undertaken by AAA and Big Oil fades further into irrelevance.”

Dinneen also noted the utter hypocrisy of statements made by AAA and the oil industry that using E15 may void auto warranties. “Ironically, not a single automaker approves the use of 85 octane gasoline, and the Department of Energy (DOE) warns that using such fuel may void warranties,” he said. “Yet, 85 octane gasoline continues to be sold all across the Rocky Mountain region and refiners are fighting tooth and nail to keep this inferior gasoline in the marketplace.”

While automakers began approving the use of E15 in their vehicles in 2012, approximately 6 million miles’ worth of testing by DOE and the Environmental Protection Agency (EPA) shows that the use of E15 is safe in all vehicles built since 2001. E15 waivers issued by EPA in 2010 and 2011 effectively approve  the use of E15 in all vehicles built since 2001; this means more than 85 percent of the total current U.S. vehicle fleet can safely and legally run on E15.

The RFA analysis can be found here.

Read the original story: RFA Analysis Shows Uptick in Number of Automakers Who Have Approved E15 for Use in New Vehicles

Claremont, Minnesota - Al-Corn Clean Fuel, a farmer-owned ethanol production cooperative, has announced plans for a modernization and expansion project at their ethanol facility in Claremont, MN.

The project will make Al-Corn Clean Fuel more profitable for members and allow the cooperative to modernize its grain facility, add rail capacity, lower its greenhouse gas score, and drive down the cost of production.

"I am very excited about new investment in agricultural processing facilities in southern Minnesota" said Senator Dan Sparks, Chairman of the Senate Jobs, Agriculture and Rural Development Committee. "I know the Claremont ethanol plant was one of the first plants built in Minnesota and has been a huge financial success. I congratulate the plant and wish it future success."

Representative Rod Hamilton, Chairman of the House Agriculture Finance Committee, added, "Agriculture is the backbone of Minnesota's economy, and the expansion of Al-Corn is a testament to the importance of corn growers to our state. Through more job opportunities as well as an increased demand for corn and ethanol, the modernization of this plant is welcome news for all of us who value agriculture in southern Minnesota."

With facilities expanding throughout the renewable fuels sector, margins continue to tighten. Those facilities that are expanding and reducing cost are primarily those that are newer, larger, and already more efficient in terms of operating costs. This puts tremendous pressure on older, smaller, less efficient plants.

The expansion and modernization project will make Al-Corn Clean Fuel more competitive, thereby allowing the member-owned cooperative to continue operating for the long term.

"This is a huge project for our area, and we are excited to see the growth and economic impact it will have" said Jennifer Libby, President and CEO of Owatonna Area Chamber of Commerce. "We are excited for our member company, Al-Corn Clean Fuel, and for all our local communities that will benefit as a result."

Senator David Senjem added "I am excited to learn of Al-Corn’s decision to expand and become one of Minnesota’s largest ethanol producers" said Senator David Senjem. "Expansion means more jobs, more markets, and more economic vitality for our area of the state".

"Al-Corn Clean Fuel is a valuable asset to the farmers and the general economy of my district" said Senator Vicki Jensen. "This expansion and modernization investment ensures we can stay competitive in the value added agricultural market ethanol has been to Minnesota."

Construction is scheduled to begin in 2016, with completion in late 2017.

One News Now

December 21, 2015

By Chris Woodward

Voters in Iowa will choose their favorite presidential candidates in February, and while the economy and national security are big issues, Iowans also place importance on things like ethanol.

According to a new poll from the Des Moines Register, 77 percent of likely Iowa caucus-goers who identify as Democrats support the ethanol mandate, a 2007 law requiring increasing amounts of alternative fuels to be blended into gasoline. In addition, 61 percent of Republican caucus-goers support the ethanol mandate. Ethanol is an alternative fuel source made from corn and other plant materials.

Iowa just happens to be the nation's largest producer of corn and ethanol, which has big implications for presidential candidates from both parties. Regardless, Democrats and Republicans in recent years have expressed support for ethanol – and not just those in Iowa, but also on Capitol Hill and the campaign trail.

Bob Dinneen, president and CEO of the Renewable Fuels Association, contends that ethanol helps reduce the America's dependency on foreign oil.

"Ethanol is a stone-cold winner when it comes to the environment,” he says. “It is 30 percent to 40 percent better when compared to gasoline in terms of carbon emissions. It helps to address global climate change. But more than that, it is reducing tailpipe emissions that cause real health effects." 

Dan Kish, senior vice president for policy at the Institute for Energy Research, says ethanol does have certain good qualities, and acknowledges that production has gotten more efficient with some of the leftover product being used to feed certain livestock. Still, Kish says he would rather see a free-market scenario with ethanol.

If it were such a great idea, this would happen naturally in a free market, in a free country - not by dictates coming from the government," he states.

The Des Moines Register poll did ask likely Iowa caucus-goers if they support tax deductions for oil and gas exploration and development. Of Republicans, 59 percent say yes, compared to 26 percent of Democrats. When asked about these matters in recent years, Kish told OneNewsNow that these "are the same tax breaks that normal businesses get for investment."

Meanwhile, Dinneen has dimissed concerns that ethanol is bad for some, if not many, engines. He also dismissed concerns by restaurant groups and some environmentalists that ethanol has a negative impact on food prices and the environment.

Read the original story: Ethanol Will Factor in Big for Both Parties in Iowa

Ethanol Producer Magazine

Dec 21, 2015

By Robert Wright

The global media landscape these past few weeks has been dominated by coverage of world leaders meeting at Paris Climate Summit to agree on measures to address climate change. COP21 an excellent opportunity to reboot the debate about biofuels, and ethanol in particular, and begin a discussion on how to best capture their genuine ability to play a positive role in the fight against climate change.

Tackling climate change is one of the biggest challenges we face. Unless we take decisive action to reduce greenhouse gas (GHG) emissions, there is little hope of limiting damaging rises in global temperatures. Achieving the GHG reductions that are needed to stay below a 2-degree Celsius increase in global temperatures will require substantial emission reductions in the transport sector.

Today, global transport emissions have increased to 14 percent of the world’s GHG emissions and about a quarter of the total energy-related CO2 emissions. With the United Nation’s Intergovernmental Panel on Climate Change predicting transport emissions could double by 2050, the need for preventative policy measures by world leaders is clear and urgent.

It was therefore reassuring that 36 countries had, in their Intended Nationally Determined Contributions plans, highlighted biofuels use as a key component of their climate action policies. Sixty-four countries worldwide, including the European Union, U.S. and Brazil, already have policies mandating the use of biofuels, but more need to do so.

Decarbonizing global transport is a huge task, because it is more than 95 percent dependent on oil. We therefore need to find ways of making the existing vehicles, including planes and ships, and infrastructure cleaner. It will undoubtedly be a huge challenge but, according to the IPCC, transport’s growing emissions could be cut by 15 to 40 percent through “aggressive and sustained” policy measures, including reducing the carbon intensity of transport fuels by substituting oil-based products with biofuels. This can be achieved, and sustainably.

According to the International Energy Agency, by 2050, sustainably produced biofuels could provide 27 percent of the world’s total transport fuel and avoid around 2.1 billion metric tons of CO2 emissions per year, eventually providing 23 percnet of total emission reductions in the transport sector.

This is the emissions reduction potential of biofuels that needs to be realized. But the potential can only be realized if policy frameworks at national, regional and global level are stronger, more stable and more ambitious.

Ethanol has a vital role to play in global decarbonizing transport because it is the most used biofuel globally and can achieve GHG emissions reductions of between 40 to 90 percent compared to petrol. Because it can be blended with petrol, and used in existing petrol engines, it also allows us to decarbonize the current fleet without needing to replace existing vehicles and infrastructure. It is clean, affordable, and here today. I’m not saying that ethanol is a silver bullet, but it is one of the main technologies that can play an important role in decarbonizing transport.

Ethanol is already helping the world to reduce its carbon emissions. Just this week, the Global Renewable Fuels Alliance, in cooperation with (S&T)2 Consultants Inc., released a new report which found that, in 2014, the total GHG emission reductions from global ethanol use were 100 million metric tons—equivalent to the total national GHG emissions of Sweden and Norway combined. The report predicts that even under a conservative, business-as-usual scenario, the total GHG emission savings achieved from global ethanol use could rise to 155 million metric tons in 2030.

Along with their climate benefits, biofuels are a key part of the global agricultural complex, facilitating rural development and supporting food production, particularly in poorer regions. Our industry is a key driver of clean technology innovation and investment but we constantly recognize the need to innovate even further. One way we can do this is through investment in advanced biofuels, which are produced from wastes and residues.
Ethanol is just one of the technologies that will play an important role in the fight against climate change. But unlike other solutions, it is ready to use today—here and now—and at scale. With ethanol, we can make an immediate impact on reducing global transport emissions. So let’s make that impact.

Read the original story here : Reboot Global Debate On Biofuels