In the News

The Hill

Jan 22, 2015

By Dounglas A. Durante

There is an old saying that the only things that are certain in life are death and taxes.  However, we must add to that list the certainty that each Congress Sen. Dianne Feinstein (D-Calif.) will continue her inexplicable crusade against corn ethanol by introducing legislation, amendments, riders, and other measures to tear down one of the great American success stories in an otherwise miserable legacy of energy policy. The current iteration is an amendment to the Keystone Pipeline legislation.

What is so troubling about the Senator's vendetta is the complete and blatant misinformation used to support the attack. It is curious, and troubling, that in the face of absolute and unimpeachable facts, she continues.  In her latest effort to attack ethanol she has enlisted Pennsylvania Sen. Pat Toomey (R) who cites the same misinformation.  And make no mistake, this is an attack on ethanol.  The notion that corn ethanol could be eliminated from the RFS and this would magically open the door for non-corn feedstocks is preposterous and beyond naive.  

But again, lets look at the facts and motives. To begin with, there is no such thing as a "corn ethanol mandate."  In fact there is no ethanol mandate of any kind.  The Renewable Fuel Standard, which Feinstein voted for in 2008, requires a certain amount of renewable fuels be used.  Compliance is met by using a range of fuels from a range of feedstocks, and the list is growing. Biogas from landfills and even electricity from biomass can be used. Ethanol, from corn or otherwise, is an eligible fuel  and is used by refiners at their choice and discretion.  Ethanol is a critical component of reformulated gasoline and has been largely responsible for eliminating carbon monoxide violations,  with all areas of the country now in attainment after using ethanol to oxygenate gasoline.  It is used as a clean octane additive to replace toxic compounds including carcinogens like benzene used by the petroleum industry.  No one is required to use ethanol but it is chosen because it is a cost effective gasoline additive, period. So any legislation to "remove the corn ethanol mandate" could in theory be passed because there is no such thing.

Joining Feinstein in this effort is Toomey who, sadly, seems to have the same briefing book of misinformation.  He cites ethanol driving up gasoline prices when  it is and has been less expensive and makes up more than 10 percent of the nations fuel supply. He then states it increases food costs which has been so refuted we do not have the space here to even begin to argue that.  Suffice it to say corn is less expensive now than it was before the RFS so it defies any degree of spin to say the program has driven up prices of grain or food.  He then states it harms engines-- again, a Pinocchio-like canard. Every automaker in the world honors the use of 10 percent ethanol blends and nearly 80 percent of the cars on the road today are approved for 15 percent blends. Small engines and even marine engines are approved for ethanol . Finally, he states it harms the environment when EPA has clearly stated ethanol is at minimum 20 percent less than gasoline in terms of reducing greenhouse gas emissions.  Recent research we have conducted shows that is selling corn ethanol short and the true carbon reductions should put it in an advanced category.  It reduces particulates, toxics, sulfur, and a range of harmful emissions. So of the four reasons the Senator cites for his opposition, none are based in fact.  None.

As for Feinstein, to say the intent of the RFS was to support the development of cellulosic biofuels, that is certainly true. But the road to those fuels is paved by the corn ethanol industry and to advance those fuels at the expense of what has been an unqualified success is just plain wrong. If these Senators want to help cellulosic ethanol, there are a number of things they can do besides attacking corn ethanol. How about introducing legislation to provide meaningful, effective incentives to automakers to make all cars flex fuel, capable of operating on any blend of ethanol so we have somewhere to put the fuel?  Or legislation to clarify the intent of the Clean Air act with respect to reducing toxic aromatic compounds in gasoline, creating a market for clean ethanol as an octane additive. 

It is discouraging to the entire biofuels industry to see good people operating with bad information. With 13 new senators and 58 new members of the House, don't they deserve to get facts?  At what point do opponents of corn ethanol stop pretending they did not know that every argument raised by the oil companies -- who are only trying to protect their market monopoly - - are without merit. There is no credible argument to support these anti-ethanol positions and every reason to stay the course.

Durante is executive director of the Clean Fuels Development Coalition

Read the original story here : The Ongoing Attack On Ethanol

 

Global Renewable Fuels Alliance

Jan 20, 2015

TORONTO, Canada – Today, the Global Renewable Fuels Alliance (GRFA) applauded FAO (Food and Agriculture Organization of the United Nations) Director-General Jose Graziano da Silva for his support of biofuels as a key part of the global agriculture complex at the Global Forum for Food and Agriculture that took place January 15 – 17 in Berlin.

The Global Forum for Food and Agriculture is an annual international conference that focuses on central questions concerning the future of the global agri-food industry. This year’s theme was “The Growing Demand for Food, Raw Materials and Energy: Opportunities for Agriculture, Challenges for Food Security?”

Throughout his remarks, the Director-General praised biofuels for their social, agricultural and environmental benefits and the necessity for agriculture to accommodate both food and fuel.

“We applaud the FAO Director-General for the stating what over 62 countries with biofuel friendly policies have known for years – that biofuels deliver much needed rural jobs, significantly curb green house gas emissions, reduce our reliance on crude oil, and encourage energy diversity, “ stated Bliss Baker, spokesperson for the GRFA.

According to the GRFA, global biofuels production is making a significant contribution to the global economy, having contributed $277.3 billion and supported nearly 1.4 million jobs in all sectors of the global economy in 2010. By 2020 the global biofuel industry is forecasted to grow to support over 2.2 million jobs in all sectors of the global economy.

Additionally, according to F.O. Licht, global ethanol production was forecasted to reach 90.38 billion litres in 2014 and its use worldwide would reduce GHG emissions by over 106 million tonnes globally, equal to removing 21 million cars – the equivalent of all the cars registered in Malaysia – off the road annually

The Director-General also stressed the need to shift to sustainable agriculture systems, achieving greater efficiencies in their use of natural resources, in particular water, energy and land, to allow room for both food and fuel.

Read the original story here : Biofuels Should Be Part Of The Mix : FAO Director-General

 

Bloomberg

Jan 20, 2015

By Andrew Noel

Novozymes A/S, the world’s largest maker of enzymes used in biofuel to washing powder, said the market for second-generation ethanol plants that run on agricultural waste can withstand the current fall in oil prices.

If the price of oil sank to about $40 a barrel over the long term, demand for so-called 2G technology would be effected, according to Chief Executive Officer Peder Nielsen. Demand for biofuel enzymes increased 10 percent in the fourth quarter, bolstering profit in the period.

Novozymes, which opened a 2G ethanol plant in Italy in October 2013, is betting that depressed prices for oil, a key cost component in corn farming, will rub off on the cost of the crop, helping to improve its competitiveness. Added to that, is the environmental awareness that will be raised with the United Nations Climate Change Conference in Paris this year, Nielsen said.

“If oil were to stay at $40 forever, then I would argue that the value of the option we are offering would get smaller,” Nielsen said in a phone interview. “I think it will climb back up to $80 a barrel. Oil is the main input for corn. It’s not a given that corn gets expensive.”

Novozymes expects the volume of first-generation ethanol that uses crops, rather than crop-waste, to remain at steady levels in 2015. The Bagsvaerd, Denmark-based company had envisaged supplying 15 second-generation ethanol plants by 2017 when it inaugurated the plant in Crescentino, Italy. That may now take until 2020, Nielsen said.

Read the original story here : Novozymes Chief Says 2G Ethanol Market Can Endure Oil Price Drop

 

Ethanol Producer Magazine

Jan 16, 2015

By Holly Jessen

The ethanol industry is reacting to efforts in the U.S. Senate to add an amendment to the Keystone pipeline bill to alter the renewable fuel standard (RFS). 

Sens. Dianne Feinstein, D-Calif., and Pat Toomey, R-Pa., have attached an amendment that would eliminate corn ethanol from the RFS to the Keystone bill that is currently before the Senate.

Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:

“The Feinstein/Toomey amendment is founded upon a false premise. The sponsors claim the so-called corn ethanol mandate drives up the price of corn, food, and gas. The fact of the matter is that corn is less expensive today than when the RFS was passed in 2007. There is simply no truth to the notion that ethanol has driven up the price of food. In fact, the UN concluded that food prices are driven more by the price of energy than the cost of commodities. To that point, ethanol has been less expensive than gas for the better part of the past four years and has helped reduce consumer pain at the pump.

“This amendment is an unnecessary solution to an imaginary problem. If approved, it would set our nation’s energy, economic, and climate agenda back decades.”

A statement from Tom Buis CEO of Growth Energy, said:  

“This legislation is incredibly shortsighted. Nearly identical legislation has been introduced in the past and has always failed to gain any traction since a majority of Senators understand the importance of homegrown American renewable fuels. This amendment would eviscerate the RFS - the most successful energy policy enacted in the last 40 years. It will continue to keep us addicted to foreign oil and more than anything, it seems like this legislation is appeasing the wishes of Big Oil and Big Food.

“Additionally, this legislation is based on false, misleading information. To blame ethanol for an increase in the price of food may make for good rhetoric, but it is completely devoid of any facts to back it up. Corn ethanol is not the cause of high prices; it is the price of oil. Even the World Bank outlined how crude oil prices are responsible for over 50 percent of the increase in food prices since 2004. Countess studies have shown that oil prices, Wall Street speculators and the high costs of manufacturing, packaging and transportation are the true culprits driving up food prices.  Furthermore, 2014 yielded a record corn crop and the price of corn dropped precipitously throughout the harvest, even as food costs increased.

“The authors of this legislation fail to understand the actual process of how ethanol is produced," Buis said. "Only the starch is removed, while all of the valuable components – the fiber, oil and protein is returned to the food chain in the form of a high protein animal feed.

The statement went on to point to ethanol's environmental benefits and called it a "concession to the demands of Big Oil and Big Food."

Read the original story here : RFS Amendment Would Set U.S. Energy Agenda Back Decades

Ethanol Producer Magazine

Jan 13, 2015

By Erin Voegele

The U.S. Energy Information Administration has released the January issue of its Short-Term Energy Outlook, which includes its first short-term prediction of 2016 ethanol production levels.

Within the STEO, the EIA reported ethanol production in December reached a record of 979,000 barrels per day, exceeding the previous record of 968,000 barrels per day set in November. Ethanol production averaged approximately 935,000 barrels per day last year, and is expected to average 936,000 barrels per day this year. In 2016, the EIA predicts ethanol production will increase to 937,000 barrels per day.

According to the EIA, biodiesel production averaged 81,000 barrels per day last year and is forecast to average 84,000 barrels per day this year and in 2016.

EIA data indicates weekly regulator gasoline retail prices averaged $2.14 per gallon on Jan. 12, the lowest since May 4, 2009. The EIA predicts gasoline prices will average $2.16 per gallon during the first quarter of this year, and average $2.33 per gallon in 2015. Gasoline prices averaged $3.36 per gallon last year. In 2016, gasoline prices are expected to increase, averaging $2.72 per gallon.

The EIA’s most recent weekly ethanol production data indicates production averaged 949,000 barrels per day the week ending Jan. 2, down from 972,000 barrels per day the week ending Dec. 26. The U.S. set a new weekly production record during the week ending Dec. 19, when production averaged 992,000 barrels per day.

The U.S. exported nearly 1.89 million barrels of ethanol in October, and increase from the 1.35 million barrels exported in September. The U.S. also imported 30,000 barrels of ethanol in October, up from 7,000 barrels in September.

Read the original story here : EIA Predicts Increased Ethanol Production In 2015 and 2016

Ethanol Producer Magazine

Jan 12, 2015

By Holly Jessen

A Minnesota ethanol producer is having success with its efforts to provide E85 directly to gas retailers, bringing lower-priced E85 to Minnesota drivers. In fact, on Jan. 12, the Cenex gas station in Alexandria, Minnesota, was selling E85 for only 85 cents a gallon, exactly $1 cheaper than E10, as part of an E85 price agreement with DENCO II, an ethanol plant in Morris, Minnesota.

The 24 MMgy plant first installed a blending skid in 2011. “It’s definitely the right thing to do for the industry and for the consumers in the local market,” said Carson Berger, commodities risk manager of the ethanol plant.” We have the fuel right here.” 

The company grew its direct sales program from a very small percent of production to about 10 percent. And it's still growing. “Over past year we have more than doubled our E85 sales and we have plans to double it again,” he said, adding that it has provided the company with added marketing flexibility.

In all, DENCO II supplies E85 directly to 45 gas stations. The company sends out its prices in a daily email, direct to station owners and sells E85 on a daily or contract basis, he said. Other Minnesota ethanol plants that provide E85 direct to retailers include Chippewa Valley Ethanol Co., Bushmills Ethanol Inc. and a Poet LLC plant.

Thirteen stations are part of DENCO II’s price promotion, which started April 2013 and will continue at least through March, Berger told Ethanol Producer Magazine. Like the Cenex station in Alexandria selling E85 for 85 cents, the gas stations sell DENCO II E85 for $1 less than E10. As of Jan. 9, three gas stations in Morris, where the plant is located, were selling E85 for 95 cents and E10 for $1.95. Other west central Minnesota gas stations that are part of the price promotion include Glenwood, Hancock and Wheaton.

As a blender, DENCO II separates and sells renewable identification numbers (RINs), which allows the company to sell E85 for less to retailers, enabling retailers to sell E85 for less to consumers. According to the Jan. 12 Atlas Markets daily price email, RINs are currently priced between 71 to 75 cents for 2013 and 2014 D6 RINs. Because DENCO collects 100,000 or more RINs in a month, it can more easily wade into the RINs market than a gas retailer could, Berger said, adding that, “it’s difficult to sell RINs in smaller lots.”

The direct sales program isn’t as simple as just installing a blending skid at the plant, notifying area gas stations about E85 prices from the plant and hoping for success, Berger said. The company has put a lot of work in, developing relationships with retailers and getting them on board with E85. Retailers who are used to selling regular gas need education about new fuel blends and help with marketing. DENCO II works with Growth Energy to supply the stations with the information and material they need to market E85 and other ethanol blends properly.

Selling E85 to gas retailers hasn’t only been successful for the ethanol plants. “We’ve seen stations increase their sales volume by 700 percent,” he said, adding that with the current low E85 prices, retailers are seeing ripple effects. “The consumer has more dollars in their pocket and retailers have found that some of the savings on the fuel side will come into the store and be spent on retail goods, like candy bars and pop,” he said.

Read the original story here : Ethanol Plant Brings 85 cent E85 To Minnesota

Gevo Inc

Jan 8, 2015

Gevo Inc, the world's only commercial producer of renewable isobutanol, today reported an update on the progress of the Side-by-Side operational mode (SBS) of its plant in Luverne, MN.

In June 2014, Gevo commenced the co-production of isobutanol and ethanol at Luverne, with one fermenter dedicated to isobutanol production and three fermenters dedicated to ethanol production. Gevo had articulated a goal of reaching isobutanol production levels of 50-100 thousand gallons per month by the end of 2014. In the month of December, Gevo produced over 50 thousand gallons of isobutanol, meeting the Company's stated goal.

Other key highlights since the last plant update provided in Gevo's third quarter earnings release include:

Implementation of a second-generation yeast isobutanol biocatalyst at Luverne that significantly improves plant operability.

Increased the isobutanol fermentation rate by approximately 20% versus the best performing batch using the first-generation yeast.

Can produce in operating conditions that enable further mitigation of potential infections, as well as the improved management of the iDGs animal feed co-product.

This second-generation yeast platform, which is a product of a new yeast modification capability developed by Gevo, speeds up the development and implementation of new traits in Gevo's yeast through high-speed combinatorial techniques.

NAPA Myers Auto Parts began selling off-road fuel developed by Gulf Racing Fuels containing blends of up to 16% of Gevo's renewable isobutanol in North Dakota, South Dakota, Wyoming, Montana, and Minnesota for use in boats, ATVs, motorcycles and snowmobiles.

"We are very pleased to have achieved our milestone of producing over 50 thousand gallons of isobutanol in a month, while continuing the co-production of ethanol. Since announcing in March 2014 that we would be switching Luverne over to SBS, we have consistently met our operational targets. I would like to thank the entire Gevo team for all of their hard work in continuing to prove out isobutanol production at a commercial scale. We are also extremely excited to have implemented our new yeast biocatalyst at Luverne. We believe that this yeast platform will enable even greater progress of our commercial isobutanol production," said Dr. Patrick Gruber, Gevo's CEO.

"The anticipated benefits of switching Luverne to SBS have borne out. Producing alcohol in all four fermenters improves the operating environment for the optimization of our isobutanol production by creating a continuous and stable mash flow and a more consistent recycle of water through the plant. SBS has also dramatically improved the cash flow profile of the plant. In fact, we estimate that the plant operated at roughly an EBITDA breakeven level in November. Overall, we believe that we have made tremendous progress in proving out our isobutanol technology for potential licensees," Gruber added.

"We are also very encouraged by the enthusiasm of the market to adopt Gulf Racing Fuels' gasoline blends with Gevo's renewable isobutanol for marine and off-road applications. These are ideal markets to demonstrate isobutanol's beneficial properties and set the stage for entry into the larger on-road market," he said.

 

Read more about Gevo here

Renewable Fuels Association

Jan 6, 2015

By Robert White

Every week I hear from consumers with questions on ethanol and what it does to their fuel. Most don’t understand that the composition of gasoline, along with the refining process, has changed dramatically over the past two decades. They automatically assume that anything negative has to be caused by ethanol. Nearly all of them will admit that nothing has happened to them, but they have been told a story, or seen an advertisement that made them nervous. Many companies have jumped on this fear and the anti-ethanol movement. When Big Oil spends millions to denounce ethanol, it creates an opportunity to sell products to consumers they don’t truly need.

This year at Sturgis I found an “octane enhancer” bottle near our fueling position. RFA was again giving away free 93 octane E10 (10% ethanol) to riders. Our summer intern that was filling the tank said someone was through and was concerned the ethanol didn’t have enough octane, and added this product before he left. My curiosity got the best of me, and I had to know what the secret ingredient was for this product. The AMSOIL Dominator Octane Boost wasn’t trying to hide it; ingredients were listed on the back. The product is 60–100% #2 diesel. You can read the MSDS Sheet here. Let’s think about this for a second. This gentleman was trying ethanol-blended fuel, supposedly for the first time, and due to his fear, AMSOIL had convinced him to add #2 diesel to his motorcycle’s fuel tank? We didn’t see the man again, but I did wonder what he would blame if he had issues... the ethanol, the gasoline or the diesel?

Recently, I spotted someone promoting a new product on Twitter.  This product, BG Ethanol Fuel System Drier, claims that it “defends engines against the water that accumulates in ethanol-blended fuel.” The supplier advertising on Twitter claimed it “goes in ethanol & absorbs moisture to prevent freezing.” When I pointed out the fact that is what ethanol does for gasoline, they quickly responded with an “awesome, thanks” and blocked me from seeing their future Tweets.  But, my curiosity got the best of me again, and I went hunting for more information on this product. I easily found the MSDS Sheet and found that this product is 60–100% alcohol. So, again, the consumers that are concerned with the amount of ethanol (alcohol) in their fuel are being marketed by BG to add more alcohol? That this product will cure a problem that doesn’t exist, that ethanol has already remedied? Just to further my point, in just 5 minutes of research, I collected this list of products that contain over 60% alcohol that claim to fix an ethanol issue:

Evinrude 2-4 Fuel Conditioner

Formula X2

K100 Fuel Treatment

Consumers are faced with a barrage of information dailty, but one thing is consistent. They should all do their own research. I understand that convincing people to read an MSDS sheet is not ever going to be easy, but the label is a good start. RFA will continue its efforts to add more transparency to the marketing of the additive manufacturers. The best advice to give to consumers is for them to read their owner's manuals and follow the advice of the company that provides the warranty, and built the product. Not someone trying to sell you some snake oil.

Read the original story here : Read The Label!

Every week I hear from consumers with questions on ethanol and what it does to their fuel. Most don’t understand that the composition of gasoline, along with the refining process, has changed dramatically over the past two decades. They automatically assume that anything negative has to be caused by ethanol. Nearly all of them will admit that nothing has happened to them, but they have been told a story, or seen an advertisement that made them nervous. Many companies have jumped on this fear and the anti-ethanol movement. When Big Oil spends millions to denounce ethanol, it creates an opportunity to sell products to consumers they don’t truly need.

This year at Sturgis I found an “octane enhancer” bottle near our fueling position. RFA was again giving away free 93 octane E10 (10% ethanol) to riders. Our summer intern that was filling the tank said someone was through and was concerned the ethanol didn’t have enough octane, and added this product before he left. My curiosity got the best of me, and I had to know what the secret ingredient was for this product. The AMSOIL Dominator Octane Boost wasn’t trying to hide it; ingredients were listed on the back. The product is 60–100% #2 diesel. You can read the MSDS Sheet here. Let’s think about this for a second. This gentleman was trying ethanol-blended fuel, supposedly for the first time, and due to his fear, AMSOIL had convinced him to add #2 diesel to his motorcycle’s fuel tank? We didn’t see the man again, but I did wonder what he would blame if he had issues... the ethanol, the gasoline or the diesel?

Recently, I spotted someone promoting a new product on Twitter.  This product, BG Ethanol Fuel System Drier, claims that it “defends engines against the water that accumulates in ethanol-blended fuel.” The supplier advertising on Twitter claimed it “goes in ethanol & absorbs moisture to prevent freezing.” When I pointed out the fact that is what ethanol does for gasoline, they quickly responded with an “awesome, thanks” and blocked me from seeing their future Tweets.  But, my curiosity got the best of me again, and I went hunting for more information on this product. I easily found the MSDS Sheet and found that this product is 60–100% alcohol. So, again, the consumers that are concerned with the amount of ethanol (alcohol) in their fuel are being marketed by BG to add more alcohol? That this product will cure a problem that doesn’t exist, that ethanol has already remedied? Just to further my point, in just 5 minutes of research, I collected this list of products that contain over 60% alcohol that claim to fix an ethanol issue:

- See more at: http://www.ethanolrfa.org/exchange/entry/read-the-label/#sthash.tbYCsc3U.dpuf