In the News
June 24, 2019
By Gevo
Gevo Inc. announced June 17 that Virgin Australia has used Gevo’s sustainable aviation jet fuel (SAJF) to power 1 million kilometers of flights, for all aircraft operating in and out of Brisbane Airport when the fuel was put through the general fuel supply system. This marks another important step for Virgin Australia towards building a supply-chain for the long-term commercial use of Gevo’s SAJF in Australia to lower greenhouse gas emissions.
Since the first container of SAJF was delivered to Brisbane back in August 2018, Virgin Australia has continued to work with Gevo and has welcomed three more deliveries of the SAJF since this time.
Virgin Australia Chief Legal and Risk Officer Dayna Field said the 1 million kilometers flown represents an important milestone and demonstrates that this low carbon product can go the distance. “Virgin Australia is proud to have led this initiative in Brisbane, as it has been an important step in promoting the use and production of sustainable aviation fuels in our region.”
“We are actively looking at ways to reduce our carbon emissions and low-carbon fuels present a real opportunity. As a diversified airline group, we know that establishing a local low-carbon fuel industry will have positive environmental, social and economic impacts,” she said.
Patrick R. Gruber, the CEO of Gevo, commented, “We are pleased to be working with Virgin Australia to get our de-fossilized, sustainable jet fuel into the Australian air. We appreciate the efforts of all the project partners, the Queensland Government, the Brisbane Airport, Caltex and DB Schenker who have all tirelessly worked to commence the transformation of the Australian jet fuel supply chain. This is a very good milestone which demonstrates the potential for the future.
Read the original article: Virgin Australia Flies 1 Million Kilometers with Gevo’s Jet Fuel
June 12, 2019
This is how Sweden meets its climate goals for transport, a report from the Royal Swedish Academy of Engineering Sciences, estimates that if the goal is to be met, the transport sector will require 25 TWh of electrical energy and as much as 40TWh of biofuels.
Currently Sweden uses about 19 TWh of biofuels and 2.6 TWh of electricity for domestic transport.
"It's not enough to talk about charging stations in central Stockholm. We are also going to need large volumes of biofuel," Karin Byman, who led the project, told The Local.
She said she was still convinced that a zero carbon transport sector was "technically possible".
"But it is a big challenge because we need to change the way we look at transport. We need to have a more transport-effective society," she said. "When we plan our cities we need to look at 'where do you have the shops, where do you have the schools?', so we don't need to have so much traffic."
Byman stressed that her argument that more energy would be needed from biofuels for transport than from electricity by 2045 did not mean electric cars would not dominate passenger transport.
"The electrical motor is so much more efficient than a normal engine, so it won't require as much electricity as an amount as cars running on biofuel will require," she explained.
By 2045 she expected most passenger cars to be electric, with biofuel used predominantly for planes, agricultural machinery, and a few of the oldest vehicles.
The increased reliance on biofuels will require new legislation to promote Swedish domestic production and cut out imports of biofuels produced unsustainably from palm oil and other sources.
"We need to look at existing regulation so we don't just ask for more cars to use biofuels, we also need to en encourage more producers of biofuels to invest in new plants," Byman said.
Sweden was capable of being self-sufficient in biofuels, she said. "We have such big forests and such a big country...There is a lot of waste from felling trees in the forests that they don't care about today because the prices are too low."
Read the original article: Sweden 'Must Double Biofuels Use' To Meet Emissions Goal: Report
June 14, 2019
By Erin Voegle
The U.S. Energy Information Administration released the latest edition of its Short-Term Energy Outlook June 11, increasing its forecasts for 2019 and 2020 ethanol production. The agency now predicts ethanol production will average 1.04 million barrels per day this year and 1.05 million barrels per day next year. Production averaged 1.05 million barrels per day in 2018.
The June forecasts represent an increase over production levels predicted by EIA last month. In its May STEO, the EIA predicted 2019 ethanol production would average 1.03 million barrels per day, with 2020 production increasing to an average of 1.04 million barrels per day.
On a quarterly basis, the EIA currently predicts ethanol production will average 1.05 million barrels per day during the second quarter of this year, falling to 1.04 million barrels per day during the third and fourth quarters. In 2020, production is expected to average 1.04 million barrels per day during the first quarter, increase to 1.06 million barrels per day in the second quarter, and fall to 1.05 million barrels per day in the third and fourth quarters.
Ethanol consumption is currently expected to average 950,000 barrels per day in both 2019 and 2020, up from 940,000 barrels per day in 2018.
The EIA’s most recent production data shows ethanol production reached 1.096 million barrels per day the week ending June 7, up from 1.044 million barrels per day the prior week.
Ethanol stocks fell to 21.802 million barrels the week ending June 7, down from 22.553 million barrels the previous week.
The EIA’s most recent weekly data shows the U.S imported 251,000 barrels of ethanol in March, all from Brazil. The U.S. exported 3.335 million barrels of ethanol in March, primarily to Brazil, Canada and India.
Read the original article: EIA Increases 2019, 2020 Ethanol Production Forecasts
By Matt Thompson
June 11, 2019
Novozymes, a yeast and enzyme provider, announced this week at the Fuel Ethanol Workshop and Expo it’s new products: Fortiva, a new alpha-amylase, and Innova Force, a new yeast that is part of the Innova platform announced by Novozymes last year.
“With Force, we have an even stronger genetic backbone that delivers more robustness, but tolerates even higher temperatures than our previous yeasts, Drive and Lift, did,” said Brian Brazeau, vice president of biofuels commercial North America for Novozymes. “It has advanced enzyme activities that the industry would expect from Novozymes that the industry has never seen before, enabling more residual starch conversion, which ethanol producers would see as lower residual starch.”
Another innovation Force brings to the market is that it’s available in both dry and cream form. “We’re really excited to be able to bring customers the choice of being able to use dry yeast without having to compromise performance compared to cream,” Brazeau said.
Fortiva allows producers to use high temperatures during liquefaction, while maintaining enzyme performance, according to Brazeau “In the past, if ethanol producers wanted to run at higher temperatures, they could trade off with the overall performance of the enzyme and wouldn’t solubilize as much starch, which shows up for an ethanol producer as lower starch conversion and lower ethanol yields,” he said. “With our enzyme, they don’t have to make that tradeoff anymore.”
Brazeau said innovation at Novozymes continues. “We already have other next generation yeasts that we’re testing in the market, and we have a number of different enzyme molecules, both alpha-amylase and glucoamylases and complementary activities that we’re also testing in the market,” he said. “So, we are really pushing to bring even new innovations beyond these. This is certainly not the end.”
Read the original article: Novozymes Unveils New Alpha-Amylase, Yeast at FEW
Press Release
June 11, 2019
DuPont Nutrition & Biosciences (DuPont) has announced the launch of DuPont™ OPTIMASH® DCO+ for increased recovery of corn oil in dry grind ethanol plants. OPTIMASH® DCO+ provides a flexible solution for ethanol producers to increase corn oil yield without affecting downstream processes or the quality of distillers’ grains.
OPTIMASH® DCO+ is a patent-pending thermostable protease dosed into liquefaction, where it helps to liberate corn oil from the protein and fiber matrix of the corn kernel. Because it is a stand-alone product, ethanol producers can precisely dose OPTIMASH® DCO+ without having to change their alpha amylase.
“We strongly believe that the precision and performance offered by OPTIMASH® DCO+ is the right tool to help ethanol producers achieve additional profitability through greater corn oil yield,” said Troy Wilson, Global Industry Leader for the XCELIS™ Ethanol Solutions platform at DuPont. “We are excited to deliver this innovation for the ethanol industry.”
OPTIMASH® DCO+ is a part of the XCELIS™ Ethanol Solutions platform by DuPont.
About DuPont Nutrition & Biosciences
DuPont Nutrition & Biosciences applies expert science to advance market-driven, healthy and sustainable solutions for the food, beverage, dietary supplement and pharmaceutical industries. We also use cutting-edge biotechnology across a range of markets to advance bio-based solutions to meet the needs of a growing population, while protecting our environment for future generations. We are innovative solvers who help our customers turn challenges into high-value business opportunities. For more information: www.dupontnutritionandhealth.com or www.biosciences.dupont.com.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with technology-based materials, ingredients and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, health and wellness, food, and worker safety. More information can be found at www.dupont.com/.
Read the original press release: DuPont launches OPTIMASH® DCO+ at 2019 International Fuel Ethanol Workshop & Expo
Press Release
June 11, 2019
Today, U.S. Senators Amy Klobuchar (D-MN) and Tammy Duckworth (D-IL) led a group of 12 senators in urging Environmental Protection Agency (EPA) Administrator Andrew Wheeler to cease issuing so-called “hardship” waivers. These waivers are intended to help small refineries by exempting obligated parties from the Renewable Fuel Standard (RFS) but the Environmental Protection Agency (EPA) has issued dozens of waivers, including to some large and profitable oil companies, undermining the original intent of the RFS. In their letter, the senators also requested that the EPA immediately reallocate the remaining gallons and make public the information regarding any recipients of these exemptions.
Klobuchar and Duckworth were joined on the letter by Senators Tammy Baldwin (D-WI), Michael Bennet (D-CO), Sherrod Brown (D-OH), Dick Durbin (D-IL), Kirsten Gillibrand (D-NY), Mazie Hirono (D-HI), Jeff Merkley (D-OR), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR).
“We are extremely concerned about the Environmental Protection Agency’s (EPA) recent actions to continue to improperly grant small refinery hardship waivers under the Renewable Fuel Standard (RFS). EPA’s continued manipulation and misuse of the small refiner waiver authority is undermining the integrity of the RFS and disadvantaging farmers,” the senators wrote. “Rather than follow congressional intent in the Renewable Fuel Standard (RFS) and follow through on the promises made to rural America, the EPA and the Administration are providing waivers, in secret, to help some of the largest oil companies and refiners evade their compliance obligations under the Clean Air Act.”
“The small refiner waiver provision was not intended to undermine the RFS to the benefit of the most profitable oil companies in the world. We request that you cease issuing any further small refinery exemptions, immediately reallocate the remaining gallons, and make public the information regarding any recipients of these exemptions.”
The full text of the letter can be found below:
Dear Administrator Wheeler:
We are extremely concerned about the Environmental Protection Agency’s (EPA) recent actions to continue to improperly grant small refinery hardship waivers under the Renewable Fuel Standard (RFS). EPA’s continued manipulation and misuse of the small refiner waiver authority is undermining the integrity of the RFS and disadvantaging farmers.
Biofuels are a key pathway toward decarbonizing the transportation sector while lowering gas prices, driving economic growth, and creating jobs. Every gallon of biofuels we use displaces a gallon of oil and cuts carbon emissions. The U.S. Department of Agriculture (USDA) found that first generation biofuels cut greenhouse gas emissions by 43 percent, and Argonne National Lab reports that cellulosic biofuels cut GHG emissions between 70 percent and 126 percent.
Competition also helps to reduce prices, and the gasoline market is no exception. As of June 7, 2019, the price of gas with 10 percent ethanol is 20 cents cheaper than gas without ethanol.
Yet, rather than follow congressional intent in the Renewable Fuel Standard (RFS) and follow through on the promises made to rural America, the EPA and the Administration are providing waivers, in secret, to help some of the largest oil companies and refiners evade their compliance obligations under the Clean Air Act.
Ethanol prices have fallen to their lowest levels in over a decade. Renewable Identification Numbers (RIN) prices are down more than 80 percent as compared to last year, providing massive relief to refiners choosing to buy credits to comply with the RFS rather than produce renewable fuels. In fact, one oil refiner re-allocated its savings from lower RIN prices and purchased three ethanol plants, calling into question why refineries really needed these savings if they were not being used to lower expenses or pay employees.
Since 2017, refinery waivers have increased to the clear benefit of the oil industry. Over the last two years, more than 50 small refinery waivers have been issued, eliminating demand for more than 2.6 billion gallons of biofuels. There are 39 waiver applications currently awaiting action at EPA. If these are granted, it will only exacerbate this problem.
Every waiver granted negatively impacts the rural economy. At a time when farm family incomes are at their lowest levels since 2006, the improper issuance of small refinery waivers is hurting biofuel producers and farmers across the United States. In fact, Secretary of Agriculture Perdue described these waivers as “demand destruction.”
Finally, recent news reports indicate that the EPA’s proposal to make the names of refineries receiving the exemptions public may be in question due to White House interference in the regulatory process on behalf of refiners.
The small refiner waiver provision was not intended to undermine the RFS to the benefit of the most profitable oil companies in the world. We request that you cease issuing any further small refinery exemptions, immediately reallocate the remaining gallons, and make public the information regarding any recipients of these exemptions. Thank you for your attention to this critical issue.
Sincerely,
Read the original press release: Klobuchar, Duckworth Lead Letter Urging the Environmental Protection Agency (EPA) to Cease Issuing Renewable Fuel Standard (RFS) ‘Hardship’ Waivers
June 6, 2019
Press Release
Today, U.S. Senator Amy Klobuchar hosted a discussion in Moorhead on the state of biofuels and issues facing Minnesota farmers with corn and soybean farmers, as well as representatives from the Minnesota Farmers Union, Minnesota Farm Bureau, and the Minnesota Biofuels Association. Klobuchar discussed recent Environmental Protection Agency (EPA) actions on the Renewable Fuel Standard (RFS) including the continued misuse of small refinery hardship waivers and the final rule released last week allowing for the year-round sale of E15—something Klobuchar has worked to achieve for years—as well as her recent legislation to help reform financial rules for family farms facing financial hardship.
“As the summer kicks off, the new rule for the year-round sale of E15 is great news for farmers and consumers across the country,” Klobuchar said. “The year-round sale of E15 will bring prices down at the pump, strengthen our homegrown energy economy, and decrease our dependence on foreign oil. I have been fighting for years to allow for the year-round sale of E15 and this announcement will ensure cleaner, more affordable fuel choices during the summer driving months and all year long.”
For years, Klobuchar has led a bipartisan push for the EPA to allow for the year-round sale of E15, including letters to the Administration urging them to expand waivers for the sale of E15 in the summer months. In February Klobuchar questioned Agriculture Secretary Sonny Perdue at a Senate Agriculture Committee hearing about whether the year-round E15 rule would be finalized by June 1. Klobuchar is an original cosponsor of the bipartisan Consumer and Fuel Retailer Choice Act, which would amend the Clean Air Act to allow for the year-round sale of E15. She has also been a leader in the fight to strengthen the Renewable Fuel Standard (RFS) to support American jobs and decrease dependence on foreign oil. Klobuchar and Senator Chuck Grassley (R-IA) have led bipartisan letters calling for a strong RFS as the EPA has worked toward finalizing its rules on biofuels volume requirements. In March 2018, Klobuchar and Grassley led a bipartisan group of 13 senators urging the Administration to cease issuing small refinery waivers and reject changes to the RFS that would upend stability and predictability for small businesses, and rural communities.
In March, Klobuchar introduced the bipartisan Family Farmer Relief Act of 2019 with Senator Chuck Grassley (R-IA). The legislation raises the Chapter 12 operating debt cap to $10 million. By raising the cap under Chapter 12 bankruptcy, which removes certain costly reorganization requirements intended for large corporations, more family farmers would be able to seek relief under the program. This legislation comes after several years of low commodity prices, stringent farm lending regulations and recent retaliatory tariffs have taken a toll on America’s agriculture producers. Farm bankruptcy rates in many farming regions across the country are at their highest point in a decade. In some places in 2018, farm bankruptcies doubled from the previous year. Debts held by farmers are nearing historic levels set in the 1980s, further financially extending farm operations.
Read the original press release: Klobuchar Highlights Fight to Strengthen Renewable Fuel Standard and Minnesota Farmer Protections
June 4, 2019
With Formula E dominating motor racing's 'green' credentials, Auto Motor und Sport reports that with its new rules for 2021, Formula 1 wants to start to switch to carbon-neutral fuel.
It is believed F1 is prepared to argue that carbon-neutral fuel is in fact even 'greener' than electric power.
Already, the fuel used in F1 contains a small amount of biofuel, but it is claimed the authorities want this to rise to 20 per cent for 2021.
Then, the number will go up in 10 per cent increments every year.
"Let's put our foot in the door now," an engineer is quoted as saying. "Then the momentum will take over.
"If we do nothing, nothing will happen. Only those who start at 20 per cent will someday get to 100."
It is believed many of the fuel suppliers approve of the carbon-neutral fuel idea, as does Renault boss Cyril Abiteboul.
"There will be new forms of fuel coming up in the next few years, whether you are talking about more biofuel - so a different composition - or even synthetic fuel, coming from non-fossil sources," he said.
Read the original: F1 Eyes Carbon-Neutral Fuel for 2021
More...
May 29, 2019
Press Release
Hydrite Chemical Co., an integrated manufacturer and supplier of chemicals and related services, is pleased to announce the launch of its new Hydri-Maize™ catalyzed bisulfite product line for scrubber applications. Hydrite is proud to introduce an innovative formulation that will decrease plant emissions, decrease energy costs and freshwater consumption, and debottleneck operations for the fuel ethanol industry.
All Hydri-Maize™ catalyzed bisulfite products are made in the USA by Hydrite. These products are used for VOC abatement in CO2 scrubbers which can effectively help VOC reduction goals. Hydrite’s new catalyzed bisulfite product line is designed to help reduce carbon footprint and improve operations.
Scott Cumming, Biofuels Product Manager for Hydrite, commented, “We are excited about the announcement and launch of the new Hydri-Maize™ catalyzed bisulfite product line. Our catalyzed bisulfite line has already taken over 2 billion pounds of fresh water out of ethanol processes across the United States. We look forward to taking out 2 billion more pounds.”
As a company with a strong commitment to sustainability, Hydrite Chemical Co. continues to invest in research, quality control, and training to offer products and systems that reduce water and energy usage and have a minimal impact on the environment.
To learn more, visit our Biofuels page.
Read the original release: Hydrite Launches Innovative Formulation for Ethanol Industry
May 23, 2019
United Airlines today further strengthened its emerging reputation as the world's most environmentally conscious airline by renewing its contract with Boston-based World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel over the next two years. The biofuel, which United currently uses to help sustainably power every flight departing its Los Angeles hub, achieves a greater than 60% reduction in greenhouse gas emissions on a lifecycle basis.
United's contract renewal follows the airline's original purchase agreement in 2013, helping United make history in 2016 when it became the first airline in the world to use sustainable aviation biofuel on a continuous basis. United is currently the only U.S. airline to use biofuel in its regular operations. World Energy's biofuel is made from agricultural waste and has received sustainability certification from the Roundtable on Sustainable Biomaterials.
World Energy recently announced that it will invest $350 million to fully convert its Paramount, California, facility to renewable diesel and sustainable aviation jet fuel, bringing its total capacity to more than 300 million gallons of production annually at that location, one of the company's six low-carbon fuel manufacturing plants.
"Investing in sustainable aviation biofuel is one of the most effective measures a commercial airline can take to reduce its impact on the environment," said Scott Kirby, United's president. "As leaders in this space, United and World Energy are setting an example for the industry on how innovators can work together to bring our customers, colleagues and communities toward a more sustainable future."
"Great companies lead," said Gene Gebolys, World Energy's chief executive officer. "We are honored to renew our commitment to United to advance their efforts to drive change to a lower carbon future."
United's contract renewal with World Energy will further assist the airline in achieving its recently announced commitment to reduce its greenhouse gas emissions by 50% by 2050. United's pledge to reduce emissions by 50% relative to 2005 represents the equivalent of removing 4.5 million vehicles from the road, or the total number of cars in New York City and Los Angeles combined. United's biofuel supply agreements represent more than 50% of the commercial aviation industry's total agreements for sustainable aviation biofuel.
Read the original article: United Airlines Expands Commitment to Biofuel, Powering More Flights With More Biofuel Than Any Other U.S. Carrier
May 28, 2019
By Humeyra Pamuk
Democratic presidential hopeful Amy Klobuchar on Saturday called for revamping the Environmental Protection Agency’s (EPA) rules governing how refineries use ethanol in gasoline products, a proposal aimed at the politically critical state of Iowa.
Part of a series of farm policies that also addressed access to capital and bankruptcy assistance, Klobuchar, a U.S. senator, said the EPA’s waivers that allow refineries to avoid the requirements are “misguided” and said financial institutions are manipulating the biofuels credit trading market.
She called for new compliance standards and additional oversight.
Klobuchar is one of more than 20 Democrats vying for her party’s presidential nomination. If she is going to be successful, her campaign needs to galvanize support in the heavily-agriculture state of Iowa, which holds the first primary contest in the nation. Iowa is the country’s leading producer of corn, which is used to produce ethanol.
Klobuchar, who represents Minnesota, another heavily agriculture state which borders Iowa to the north, in the U.S. Senate, has been trailing in polls on the Democratic presidential field.
In a Reuters/Ipsos poll tmsnrt.rs/2LeoO8z earlier this month, she garnered support of only 1% of respondents. Former Vice President Joe Biden led the poll, with 29% of Democrats and independents saying they would vote for him in the state nominating contests that begin next winter.
The Renewable Fuel Standard (RFS) program that mandates ethanol use is a more than decade-old regulation aimed at helping farmers and reducing U.S. dependence on oil. The policy has helped farmers by creating a huge market for ethanol and other biofuels, but oil refiners say compliance is prohibitively expensive.
Under the program, refiners are required to blend biofuels into the nation’s gasoline pool or purchase credits from those that do, but smaller refineries with a capacity of less than 75,000 barrels per day (bpd) can obtain a “hardship waiver” if they prove that compliance with RFS would cause them significant financial strain.
The Trump administration made extensive use of such waivers in the last two years, saving refiners money but angering the corn lobby, particularly after major companies like Exxon Mobil Corp received exemptions for certain facilities.
Ethanol mandates have opened a war between the oil and corn industries. The ethanol industry claims the exemptions have been over-used, threatening demand for corn-based ethanol at a time when farmers are already struggling.
The policy has helped farmers by creating a 15-billion-gallon-a-year market for corn-based ethanol, but oil refiners have increasingly complained about the expense – particularly when prices are high and volatile.
RFS and the small refinery waiver program have increasingly emerged as one of the key policy areas that several Democratic presidential hopefuls have raised.
U.S. Senator Elizabeth Warren earlier this month in a letter to the EPA questioned the agency’s decision to grant a small refinery waiver to an oil refinery owned by billionaire Carl Icahn, who is a former adviser to President Donald Trump. She said waivers undermine the renewable program.
Read the original article: Democratic Presidential Hopeful Klobuchar Proposes Revamping EPA Ethanol Rules
May 23, 2019
Press Release
Representatives Collin C. Peterson (D-MN) and Dusty Johnson (R-SD) and the co-chairs of the Congressional Biofuels Caucus introduced the Renewable Fuel Standard Integrity Act of 2019 which establishes an annual June 1st deadline for refineries to submit small refinery exemption (SRE) petitions from their RFS blending obligations each year and increases transparency in the process.
“It is clear to me that EPA is abusing its authority by recklessly handing out small refinery waivers and refusing to account for them,” said Peterson. “This is hurting farmers and agriculture communities at the worst time. This bill ends the gamesmanship in the waiver process and increases transparency along the way.”
“The EPA has let oil refiners off the hook by circumventing congressional intent, putting ethanol producers at a disadvantage,” said Johnson. “The Renewable Fuel Standard Integrity Act makes sure that moving forward, the EPA’s waiver process will be fair, timely, and transparent.”
Since 2018, EPA granted 54 waivers to refineries for the 2016 and 2017 RFS compliance years totaling 2.61 billion ethanol-equivalent gallons being taken out of the market place. By law, the RFS requires that the EPA make adjustments when determining future biofuels targets to account for waivers to ensure that the overall biofuels targets are not reduced by waivers. However, the agency is not accounting for these waivers and the demand for biofuels is being undercut.
By setting a June 1st petition submission deadline each year, the EPA will have time to account for renewable fuel gallons stripped from the market due to these waivers. The bill also increases transparency in the process by making information with respect to a petition subject to public disclosure.
The bill is supported by Growth Energy, Fuels America, National Corn Growers Association, Renewable Fuels Association, National Biodiesel Board, MN Corn Growers Association and the MN BioFuels Association.
May 21, 2019
By Erin Voegele
The House Biofuels Caucus sent a bipartisan letter to U.S. EPA Administrator Andrew Wheeler May 20 expressing support for year-round sales of E15, calling on the agency to complete its pending E15 rulemaking before June 1, and urging the agency to complete its proposed RIN reforms in a separate rulemaking.
“While we applaud the agency’s effort to finalize the rule before this year’s summer driving season, we ask that the RVP and RIN market provisions be separated into two rules and incorporate the following remarks,” the caucus wrote.
For the Reid vapor pressure (RVP) waiver for E15, the caucus said it agrees “that E15 is substantially similar gasoline to E10 and should be treated as such when granting the [1] pound per square inch (1-psi) waiver on RVP limitations,” and noted the action will ease labeling confusion at the pump and extend market opportunities for U.S. agriculture communities that desperately need it.
“However, we are concerned that EPA’s proposal would create inefficiencies in the marketplace due to unnecessary restrictions on the components that can be used for blending,” the caucus wrote. “If E15 meets all applicable environmental standards, EPA should not restrict what blending components are used to make the fuel.”
Regarding RIN market reform, the caucus said its supports increased transparency in the RIN market to ensure competitiveness and fairness in RIN pricing. “However, provisions in the EPA’s proposed rule will create significant price advantages towards obligated parties that are short on biofuel blending requirements,” the caucus wrote.
“By establishing different compliance periods and RIN retirement requirements for refiners and retailers, the EPA’s current proposal penalizes early actors who are brining biofuels to market and creates a financial advantage for those entities who have been slow to comply with the intent of the law,” the caucus continued in the letter. “Any RIN reforms need to further the objectives of the RFS, which is to blend more biofuels, not undermine them. Action must be taken to ensure that the final rule does not tilt the playing field to the benefit of profitable merchant oil refiners at the expense of farmers, biofuels producers, fuel retailers, and rural communities.”
Growth Energy has spoken out to thank the 20 members of the House Biofuels Caucus for sending the letter. “We are grateful for the continued support of champions on both sides of the aisle who are fighting for a strong rule that will ensure more biofuels reach consumers at the pump,” Emily Skor, CEO of Growth Energy. “The rural economy is at a breaking point, and it’s vital that EPA act by June 1 to uphold the president’s commitment to farm families and allow retailers to keep more homegrown fuel on the market this summer.”
The letter was signed by Reps. Collin Peterson, D-Minn.; Rodney Davis, R-Ill.; Roger Marshall, R-Kan.; Dave Loebsack, D-Iowa; Darin LaHood, R-Ill.; Steve King, R-Iowa; Cheri Bustos, D-Ill.; Mark Pocan, D-Wisc.; Adrian Smith, R-Neb.; Don Bacon, R-Neb.; Dusty Johnson, R-S.D.; Cindy Axne, D-Iowa; Angie Craig, D-Minn.; Steve Watkins, R-Kan.; James Comer, R-Ky.; Abby Finkenauer, D-Iowa; Jeff Fortenberry, R-Neb.; Tom Emmer, R-Minn.; Pete Stauber, R-Minn.; and Sam Graves, R-Mo.
A full copy of the letter can be downloaded here.
Read the original article: House Biofuels Caucus Asks EPA to Split E15, RIN Reform Rule
May 15, 2019
By the Renewable Fuels Association
The Renewable Fuel Standard (RFS) has lowered gas prices by an average of 22 cents per gallon in recent years and saved the typical American household $250 annually, according to a study published today by economist and energy policy expert Dr. Philip K. Verleger, Jr.
The study used an econometric model to estimate the impacts of the RFS, which requires refiners to blend increasing amounts of renewable fuels with gasoline and diesel, on crude oil and gasoline prices over the last four years (2015-2018). Findings reveal that the RFS has provided substantial economic benefits to consumers in the United States and worldwide.
The Renewable Fuel Standard Program: Measuring the Impact on Crude Oil and Gasoline Prices concludes that by expanding fuel supplies by approximately 1 million barrels per day, the RFS reduced the price of crude oil by an average of $6 per barrel from 2015-2018. In turn, gas prices were reduced by an average of 22 cents per gallon, which amounts to a savings of nearly $5 every time consumers fill up. According to the study, the RFS is responsible for putting roughly $90 billion back into the pockets of U.S. consumers over the past four years, increasing discretionary income and raising the nation’s gross domestic product.
The report also found that if ethanol was entirely eliminated from the fuel supply, as some opponents of renewable fuels have advocated, gasoline prices would surge by more than $1 per gallon. According to the study, “Retail prices would today be above $4 per gallon, not $2.90, were renewable supplies removed from the supply mix.”
“If you’ve never heard of the Renewable Fuel Standard before today, this study tells you all you need to know: blending renewable fuels like ethanol into our gasoline supply saves American consumers money every time they fill up their tank,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “As we head into the summer driving season, it’s important for American consumers to recognize that the RFS is keeping prices down at the pump, while at the same time reducing harmful tailpipe pollutants, cutting greenhouse gas emissions, and moving us closer to energy independence.”
Dr. Verleger’s analysis corroborates the findings of earlier studies by economists at Iowa State University, the University of Wisconsin, Louisiana State University, U.S. Department of Energy, Merrill Lynch, and other institutions.
With over forty years’ experience studying and writing about energy markets, Dr. Philip K. Verleger holds a PhD from MIT and has consulted multiple administrations– as Senior Staff Economist on President Ford’s Council of Economic Advisers and, later, as the Director of the Office of Energy Policy at the US Treasury during the Carter administration. Since then, his career in academia and energy consulting has continued to make him a trusted subject expert on the function and structure of energy commodity markets.
You can read more about Dr. Verleger and access the full report here.
Read the original article: New Study: RFS Saves Consumers 22 Cents on Every Gallon of Gas
May 10, 2019
By Erin Voegele
The USDA Foreign Agriculture Service released updated export data on May 9 reporting that the U.S. exported approximately 140 million gallons of ethanol in March, along with 956,828 tons of distillers grains.
The 140 million gallons of ethanol exported in March was up from 113.82 million gallons exported in February, but down when compared to the 215.06 million gallons exported during March 2018.
U.S. ethanol was exported to approximately three dozen countries in March. Brazil was the largest importer of U.S. ethanol in March, with 65.66 million gallons, followed by Canada with 22.66 million gallons and India with 10.34 million gallons.
The 956,828 tons of distillers grains exported in March was up when compared to the 686,005 tons exported in February, and up when compared to the 905,558 tons exported in March 2018.
The U.S. exported distillers grains to approximately 38 countries in March. Turkey was the top importer of U.S. distillers grains for the month, with 162,660 tons, followed by Mexico with 128,712 tons and South Korea with 128,333 tons.
Additional data is available on the USDA FAS website.
Read the original article: USDA: March Ethanol, DDGS Exports Up from Prior Month
By Mallorie Wilken
May 10, 2019
Protein is in high demand worldwide. As the demand increases alongside a growing middle class, meeting it will require greater availability of feed protein products for the meat animals we consume.
Traditionally, one cheap source of protein has been distillers grains used in feeding swine, poultry, and dairy and beef cattle. Research has also shown opportunities in feeding it to fish and other aquatic species. Distillers grains’ versatility has increased its global demand for feeding meat animals.
At the same time protein demand is growing, the ethanol industry is maturing and looking for ways to add multiple revenue streams. Diversification is necessary and crucial for plants to remain profitable in this seasoned market.
Concentrated protein distillers grains will be one of the feed products aiding plants in developing new income streams while continuing to provide feed for animals to fulfill global meat consumption. Because each meat animal species has differing nutritional requirements for optimal performance, formulations incorporate feed commodities in various proportions to meet those requirements. While corn has traditionally been the primary commodity to add energy to a diet for swine, poultry and cattle, soybean meal has often been the supplier of protein because it has a more appropriate amino acid profile to meet dietary needs of swine and poultry than corn does.
More recently, distillers grains have been able to replace most of the protein supplement in cattle diets, but this corn protein isn’t as high in lysine content or as balanced in amino acids as soybean meal, and thus cannot make a similar replacement in swine or poultry diets.
High-protein distillers feed products are capable of supplying a larger amount of protein at a lower inclusion level compared to traditional distillers grains. However, it is still corn protein and the ratio of lysine to leucine remains 3:1, compared to 1:1 in soybean meal, which needs to be taken into account. High-protein distillers grains have the potential to replace portions of soybean meal to make the diet more cost effective to the producer while maintaining performance. Further research is being conducted to help us better understand the optimal levels of inclusion of the feed product in each species.
It is important to note that, while valuable, protein is not the only component in distillers grains that offers feeding advantages when added to animal diets. Fiber, fat and other intrinsic properties are additional factors. The bran or fiber portion of corn has roughly 20 percent protein content (dry matter basis). This protein is incredibly valuable in cattle diets as the microbial environment in the rumen is able to digest and utilize this fiber for energy and growth, unlike that of swine and poultry. Cattle producers will often note intake and health benefits of diets containing distillers grains compared to those without the product. Cattle will have more consistent consumption rates and, therefore, less digestive issues. The ability to separate the fiber and protein streams has the potential of directing the feed products to more species-specific commodities and increasing revenue for the plant itself.
When high-protein distillers grains and corn fiber, mixed with condensed distillers solubles such as ICM’s new feed, Fiber&Syrup (FS), are compared to traditional wet or dry distillers grains plus solubles (WDGS or DDGS) in beef cattle diets, animals observed statistically similar performance (see Table 1). Cattle consuming diets with ethanol feed products at 40 percent inclusion (dry matter basis) had similar to greater performance than those fed corn-only diets.
Since the ethanol feed products were fed at levels exceeding the required amount of protein, the cattle were able to utilize the feed as an energy source. This also illustrates that as long as protein requirements are met, cattle will “waste” the protein supplied by ethanol feed products as energy, as shown in Table 1 by the equivalent performance of cattle fed high-protein distillers grains (37 percent crude protein) and FS (32 percent crude protein). If cattle are able to perform similarly with enough but less protein in the diet, we should feed FS in the feed yards and utilize the more concentrated, higher protein products in species like swine and poultry where protein is valuable and expensive.
Fish is a protein source with increasing demand globally for human consumption. This demand shift is providing opportunities for farming fish. High-protein distillers grains have provided increased performance in tilapia when added to diets at either 15 percent or 25 percent inclusion (dry matter basis), as shown in Table 2. Tilapia fed ICM’s high-protein distillers grains at 15 percent or 20 percent observed significantly increased weight yield (0.28 percent and 0.29 percent respectively) compared to those fed a traditional control diet of 0.26 percent. These results suggest an opportunity to feed more concentrated protein ethanol feed products.
As feed and animal production grow to meet protein demand, new requirements and U.S. Food and Drug Administration guidelines will require technology and innovation to address the need for consistency, providing new opportunities to boost an ethanol plant’s bottom line. Consistency and verification will drive customer loyalty to purchase the feed and the price at which they choose to buy, especially as distillers grains transition from an ethanol byproduct to a feed commodity in the minds of animal producers.
The optimal balance for ethanol plants today is met by improving the ethanol production system and increasing revenue through diversified feeds that meet the needs of the local and trade markets. Market conditions are forcing ethanol plants to reevaluate their current production methods toward plant flexibility. Plants must be able to create value in all facets of production, including ethanol, corn oil and feed products. This requires plants to adopt process technologies that separate feed streams and allow the plant to recombine, concentrate, or process each feed to meet demands.
Author: Mallorie Wilkens
ICM Ruminant Technical Lead
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Read the original article: Opportunities in High-Protein Feed