In the News

Ethanol Producer Magazine

May 19, 2021

The U.S. Court of Appeals for the Tenth Circuit on May 19 issued an  order  vacating three small refinery exemptions (SREs) approved by the Trump administration on Jan. 19, less than 24 hours before President Biden’s inauguration.

The Renewable Fuels Association on Jan. 20 filed a petition for review and an emergency motion to stay the effectiveness of the three SREs with the Court of Appeals for the D.C. Circuit. The court on Jan. 21 granted the administrative say requested by RFA. Sinclair later confirmed that its Wyoming refineries were the recipients of the three SREs, and the proceedings were moved to the Tenth Circuit Court of Appeals, according to RFA. Sinclair filed a new petition for review on March 15.

The U.S. EPA filed a motion on April 30 asking the court to vacate the SREs. In the motion, the EPA said the agency “did not analyze determinative legal questions regarding whether Sinclair’s refineries qualified to receive extensions of the small refinery exemption under controlling case law established by” the Tenth Circuit Court of Appeals in its January 2020 ruling on SREs, “and there is substantial uncertainty whether, if EPA performed such an analysis, it could grant the petitions submitted by Sinclair.”

The EPA also said in its motion that Sinclair has already retired the renewable identification numbers (RINs) necessary to demonstrate compliance with its 2018 and 2019 Renewable Fuel Standard obligations. The EPA said that remanding its decision with vacatur “would preserve the status quo ante by ensuring that the RINs that Sinclair already retired to demonstrate its small refineries’ compliance with their 2018 and 2019 compliance obligations remain retired while EPA reconsiders Sinclair’s exemption petitions.”

Sinclair on May 18 filed a response with the court stating that the company does not oppose the EPA’s April 30 request for vacatur and remand. The court on May 19 granted the unopposed motion for vacatur and voluntary remand. “We vacate the agency’s decision and remand for further administrative proceedings consistent with this court’s decision in [Renewable Fuels Association v. EPA].” That decision, handed down in January 2020, determined that the EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed.

The RFA applauded the court’s decision. “We’re pleased that the court has vacated these improperly granted waivers and is sending them back to EPA for reconsideration,” said Geoff Cooper, president and CEO of the RFA. “If these exemptions had been allowed to stand, they would have erased RFS blending requirements for 260 million gallons of low-carbon renewable fuels, destabilizing rural communities and taking a step backward in the fight against climate change. EPA did the right thing in April by requesting that these spurious exemptions be vacated, and we applaud the agency for honoring President Biden’s commitment to putting an end to the surge of illegitimate refinery waivers.”

Growth Energy also welcomed news of the court’s ruling. “We are glad to see the court move swiftly and agree with EPA's motion to vacate and remand Sinclair's improperly granted SREs,” said Emily Skor, CEO of Growth Energy. "Going forward, SCOTUS should affirm the 10th Circuit’s opinion and affirm EPA’s authority to deny this and all other improper SREs outright, once and for all.” 

The American Coalition for Ethanol called the court’s action encouraging. “In anticipation that the prior administration would hastily grant these three SRE requests, ACE  sought assurance  from the EPA Inspector General that any last-minute SREs complied with federal law,” said Brian Jennings, CEO of ACE. “We're encouraged the court has vacated these wrongfully granted waivers and is sending them back to EPA for further review. Given that the Biden EPA appears to be focused on getting the RFS back on track, we expect these last-minute waivers to ultimately be denied.”

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ClearFlame Engine Technologies

May 17, 2021

ClearFlame Engine Technologies, a growing startup dedicated to the development of clean engine technology today announced a partnership with Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, to conduct pilot demonstrations of its proven solution for diesel engines using low-cost ethanol in Class VIII trucks.

ClearFlame will provide Alto with a Class VIII truck retrofitted with a 500hp heavy-duty demonstration engine, which can match diesel torque and efficiency by achieving true diesel-style combustion of any decarbonized fuel. In turn, Alto will provide fuel and fleet support, which will enable real-world testing on the road. ClearFlame anticipates its engine running on ethanol can reduce GHG vehicle emissions by more than 45 percent and offer an estimated 15-30 percent TCO savings when compared with a diesel-fueled solution.

“This is an important milestone for us as we can now offer fleets a widely available fuel solution so they can begin to test our technology easily in real-world environments,” said Dr. BJ Johnson, ClearFlame CEO and co-founder. “Alto provides the important logistical infrastructure critical to ensuring successful demonstration – everything from tank installation to dispensing of the fuel, with a well-established existing liquid fueling infrastructure already in place. We look forward to working with them to drive forward our mission of quickly decarbonizing heavy-duty industry with a practical, cost-effective solution that is available today.”

“Alto Ingredients is partnering with ClearFlame on its engine project to support our customers’ CO2 reduction efforts by displacing 100 percent of the diesel in the tank,” said Mike Kandris, CEO, Alto Ingredients. “We are proud to partner with ClearFlame in such a transformative project within the fuel industry, promoting the increased use of ethanol and contributing to material improvements in the decarbonization of our environment.”

ClearFlame’s unique engine technology enables low-carbon and carbon-negative fuels to be easily integrated into existing diesel engine platforms, offering a more sustainable and cost-effective solution than diesel fuel while utilizing existing liquid fuel infrastructure. It provides the same performance, efficiency, and rugged practicality associated with diesel engines, while eliminating the need for complex aftertreatment solutions. By replacing 100 percent of the petroleum fuel used with decarbonized fuels such as ethanol, ClearFlame’s engine technology significantly reduces greenhouse gas emissions, particulate matter and smog, helping to meet stringent emissions regulations while reducing overall engine cost. ClearFlame-enabled trucks will begin driving in late 2021, for fleet
testing to begin in the first quarter of 2022.

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information please visit www.altoingredients.com.

About ClearFlame Engine Technologies
At ClearFlame Engine Technologies, we’re breaking the bond between the diesel engine and diesel fuel, accelerating the path to true emissions reduction for the heavy-duty and off-highway markets. Our technology meets global emissions regulations using climate-friendly fuels available throughout the world. Our technology lowers costs by negating the need for complex aftertreatment technologies without compromising the practicality or performance of traditional diesel engines.

For more information, visit www.clearflameengines.com, and follow us on LinkedIn and Twitter (@ClearFlameEng).

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Ethanol Producer Magazine

May 14, 2021

Energy Secretary Jennifer Granholm briefly discussed how biofuels will into the U.S. Department of Energy’s priorities under the Biden administration during a House Committee on Appropriations hearing on May 6.

The hearing was held by the Subcommittee on Energy Water Development and Related Agencies to consider the DOE’s fiscal year 2022 budget request.

During the event, Rep. Cheri Bustos, D-Ill., stressed the importance of renewable fuels, such as ethanol and biodiesel, to rural communities. “These fuels have the potential to reduce our emissions right now,” she added, and asked Granholm how she thinks biofuels will fit in the DOE’s and Biden administration’s blueprint for a net-zero future.

Granholm said the agency has a whole biofuels and energy team working on that issue, and stressed the role she thinks biofuels can play in reducing energy-intensive forms of transportation, including long-haul trucking, aviation and marine transport. “Electric vehicles obviously have emerged as this great technology—which they are for light duty vehicles like cars and SUVs,” she said. “But pickups, heavy duty transportation modes that really need more of an energy density of liquid fuels, that is where biofuels are going to play a critical role and that’s especially true in aviation and marine fuels. So, we think they have a huge role to play, especially in long-haul trucking, and other areas too…I feel very bullish about this bottom line.”

Granholm said the DOE sees biofuels playing a big role in the U.S. transportation sector. “We think those refineries can be producing, and should be producing, aviation fuels right now,” she said, stressing significant demand currently exists for sustainable aviation fuels (SAF). “This is very exciting and its not much to retrofit a biofuel refinery to be able to produce aviation fuel,” she added. “So, we have our team working on this, so I will keep you posted, because I think it’s very exciting.”

A full replay of the hearing is available on the House Committee on Appropriations website

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Ethanol Producer Magazine

May 11, 2021

Representatives of the ethanol industry are urging U.S. EPA Administrator Michael Regan to take immediate steps to facilitate the increased use of E15 to help alleviate fuel shortages in states impacted by the recent ransomware attack on the Colonial Pipeline.

Regan on May 11  issued an emergency fuel waiver  to help relieve fuel shortages in states where the supply of reformulated gasoline has been impacted by the pipeline shutdown. The action waives the federal Reid vapor pressure (RVP) requirements for fuel sold in reformulated gasoline areas of the District of Columbia, Maryland, Pennsylvania, and Virginia to facilitate the supply of gasoline. The waiver is effective through May 18.

The Renewable Fuels Association and Growth Energy are encouraging the EPA to also take immediate steps to facilitate the increased use of E15 to help fill the void in gasoline supplies.

In a letter to Regan,  Geoff Cooper, president and CEO of the RFA, urges the agency to take two actions. “First, EPA could suspend the requirements outlined in sections 1090.1400 – 1090.1450 of Subpart O (“Survey Provisions”) and section 1090.1510 of Subpart P (“Retailer and Wholesale Purchaser-Consumer Provisions”) to Part 1090 of the Code of Federal Regulations,” Cooper wrote. “Second, EPA could immediately adopt the changes it recently proposed to Underground Storage Tank (UST) regulations in 86 Federal Register 5094 (January 19, 2021). We encourage EPA to also evaluate whether other provisions of Part 1090 should be temporarily suspended to allow for greater use of ethanol during this emergency. These actions would allow many retailers who do not sell E15 today to immediately begin offering the fuel without being unduly delayed.”

Cooper also stressed that at least 180,000 barrels per day of ethanol production capacity is currently idle and could be “quickly activated or reoriented to help alleviate impending fuel shortages on the East Coast.”

“For many reasons, utilizing domestically produced low-carbon fuel to help offset the supply shortage is preferable to importing more petroleum products, as is currently being planned,” he continued.

Cooper also noted that the Colonial Pipeline outage underscores a need for more diversity and flexibility in the U.S. transportation fuels sector. “Overreliance on petroleum has left our transportation fuels infrastructure vulnerable to disruption and volatility, with American consumers bearing the brunt of price spikes and fuel shortages,” he wrote. “By comparison, the fuel ethanol industry’s infrastructure is unconcentrated, dispersed, and uses a variety of efficient delivery channels.”

Emily Skor, CEO of Growth Energy, also sent a  letter  to Regan and Energy Secretary Jennifer Granholm calling for the agencies to immediately reduce restrictions on higher ethanol-blended fuels to provide relief from supply disruptions and rising gas prices. “By immediately removing remaining regulatory hurdles and providing greater access to E15, you can help keep fuel prices in check for American consumers and ease concerns about fuel supply,” she wrote.

“We ask that you make E15 broadly available at all fuel terminals in areas impacted by related fuel shortages,” Skor continued. “We also request EPA finalize the proposed rule that would broaden the availability of existing infrastructure for use with E15 and related labeling concerns. We also urge you to remove unnecessary misfuelling requirements, including restrictions on the use of E15 in shared fueling hoses with 10 percent blended fuel and related fuel sampling requirements. Finally, we strongly encourage the government to strengthen its use of higher ethanol blends such as E85 in its current flex-fuel vehicle fleet.”

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Reuters

May 5, 2021

The U.S. Environmental Protection Agency is handing over to the Government Accountability Office information on oil refiners that petitioned for exemptions to biofuel blending mandates, in an effort to help the government watchdog investigate the exemption program.

The move shows the Biden administration's willingness to help scrutinize the so-called small refinery exemption program, which had expanded dramatically during former President Donald Trump's term.

The disclosed confidential information will include all documents, information and data related to small refinery exemption petitions received by the EPA from the program since its inception, according to a notice on Wednesday in the Federal Register.

Under U.S. law, oil refiners must blend billions of gallons of biofuels into the nation's fuel pool, or buy credits from those that do. Refiners can apply for exemptions if they can prove the requirements would do them financial harm.

The exemptions have sparked controversy between oil and corn groups. Corn and biofuel groups say that the exemptions hurt demand for their fuel, while oil refiners reject that claim and say the exemptions are necessary to keep small refiners in business.

GAO announced in January 2020 that it would review the EPA's approval of small refinery exemptions under the Renewable Fuel Standard, including viability scores given to the applications by the Energy Department, which helps advise EPA on the program.

GAO launched the investigation after a request to do so from Democratic and Republican representatives from corn-growing states such as Illinois, Iowa and other states.

The Renewable Fuels Association, a biofuel trade group, cheered the news.

"We applaud the new leadership at EPA for providing the requested information to GAO, and we thank Administrator (Michael) Regan for taking another important step toward restoring the integrity of the RFS program," said RFA President Geoff Cooper.

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Renewable Fuels Association

May 4, 2021

American exports of ethanol accelerated in March to 133.0 million gallons (mg), the second-largest volume in a year and up 31% from February’s dip. Exports to China spiked from 4.7 mg to 48.3 mg for the country’s second-largest monthly imports of American ethanol on record (and narrowly missing the April 2016 high). Similarly, shipments to Canada accelerated by 85% to a four-month high of 34.2 mg, and India’s imports were up 13% over February to 16.8 mg. These three countries received three-fourths of all ethanol shipped in March. Other substantial markets include South Korea (7.1 mg, -67%), Brazil (5.3 mg, -32%), the Philippines (4.6 mg, -5%), and Peru (4.5 mg, +3%). Total U.S. ethanol exports for the first three months of the year totaled 399.3 mg, or 18% less than last year at this time.

For the third consecutive month, the U.S. did not log any meaningful volumes of foreign ethanol imports (6,160 gallons shipped from Canada in March). This marks the smallest volume of total first-quarter imports in four years.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—rebounded by 13% in March to 882,553 metric tons (mt). Two-thirds of U.S. exports were destined for five markets, with the remaining volumes distributed among 31 countries. Shipments to Mexico rebuilt following a sizeable slump in February with 174,928 mt crossing the border. This is equivalent to 20% of total U.S. exports in March and a 42% increase over the prior month. Shipments to Vietnam nearly doubled to a seven-month high of 130,985 mt. Exports to South Korea of 100,771 mt were 24% higher and Turkey’s imports of 84,787 mt saw an 88% improvement. Indonesia imported 80,822 mt, a slight (0.5%) decline from February. Other larger trade partners included Thailand (54,151 mt), Canada (36,827 mt), Japan (28,417 mt), Colombia (25,640 mt), and Morocco (23,331 mt). Total DDGS exports for Q1 2021 totaled 2.58 million mt, which tracks 6% behind last year.

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Ethanol Producer Magazine

May 3, 2021

The U.S. EPA on April 30 filed a  motion  in the U.S. Court of Appeals for the Tenth Circuit asking the court to vacate and remand three small refinery exemptions (SREs)  approved  by the Trump administration on Jan. 19, the day before President Biden’s inauguration.

The Renewable Fuels Association on Jan. 20 filed a  petition  for review and an emergency motion to stay the effectiveness of the three SREs with the Court of Appeals for the D.C. Circuit. The court on Jan. 21 granted the administrative say requested by RFA. Sinclair later confirmed that its Wyoming refineries were the recipients of the three SREs, and the proceedings were moved to the Tenth Circuit Court of Appeals, according to RFA. Sinclair filed a new petition for review on March 15.

In its April 30 motion, the EPA said the agency “did not analyze determinative legal questions regarding whether Sinclair’s refineries qualified to receive extensions of the small refinery exemption under controlling case law established by” the Tenth Circuit Court of Appeals in its January 2020 ruling on SREs, “and there is substantial uncertainty whether, if EPA performed such an analysis, it could grant the petitions submitted by Sinclair.”

In its motion, the EPA notes that Sinclair has already retired the renewable identification numbers (RINs) necessary to demonstrate compliance with its 2018 and 2019 Renewable Fuel Standard obligations. The EPA said that remanding its decision with vacatur “would preserve the status quo ante by ensuring that the RINs that Sinclair already retired to demonstrate its small refineries’ compliance with their 2018 and 2019 compliance obligations remain retired while EPA reconsiders Sinclair’s exemption petitions.”

The RFA has spoken out in support of EPA’s court request. “We strongly support EPA’s request for vacatur and remand of these three midnight-hour exemptions that were handed out to Sinclair in the waning moments of the Trump administration,” said Geoff Cooper, president and CEO of the RFA. “If allowed to stand, these improperly granted exemptions would have erased demand for another 260 million gallons of low-carbon renewable fuels, undermining the rural communities that depend on a strong RFS. We are greatly encouraged by EPA’s actions, which are consistent with President Biden’s commitment to stem the tide of unwarranted refinery exemptions and put the RFS back on track.”

Growth Energy also welcomed news of the EPA’s motion. “EPA is addressing the previous administration’s mishandling of the SRE program, including the midnight-hour grants of three SREs to Sinclair,” said Emily Skor, CEO of Growth Energy. “We are hopeful that EPA will continue to rein in the SRE program to achieve its limited purpose and ensure that the RFS advances the biofuels industry today and in the years to come.” 

The American Coalition for Ethanol expressed hope that the EPA plans to get the RFS back on track. “Ahead of Trump EPA’s hasty approval of these three SRE requests, ACE sought assurance from the EPA Inspector General that any last-minute SREs complied with federal law,” said Brian Jennings, CEO of ACE. “We're glad to see EPA is trying to right this wrong by asking the court to vacate the waivers and hope this action is one of many steps the Agency plans to make to get the RFS back on track.”

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Al-Corn Clean Fuel

Apr 29, 2021

Claremont, Minnesota – Al-Corn, located in Claremont, MN, is celebrating 25 years of successful operations. Born out of conversations over coffee, at church and in other locations, farmers in the Claremont area sought ways to create a better local market for their corn. 

On April 29, 1996 the process of converting corn into ethanol began with the first corn being ground. Originally constructed as a 10 million gallon a year facility, Al-Corn has undergone a series of expansion and modernization projects and now produces 125 million gallons annually. Each year the company grinds over 42 million bushels of corn and can produce 269,000 tons of high protein livestock feed, as well as 44 million pounds of corn oil. 

“A key element for success has always been a willingness to engage in strategic partnerships, to work with others in the renewable fuels sector” said Rod Jorgenson, Chairman of the Board for Al-Corn. “This approach is one of the pillars upon which Al-Corn’s success has been built and we will continue to collaborate with others in the industry in order to seize market opportunities as they present themselves.” 

Al-Corn’s business model has allowed for development of a successful financial foundation based on strength, investments that add value for members and their communities and decisions that have resulted in competitive returns. The products that come out of Claremont are consumed by refiners, livestock feeders, meat packers and biodiesel producers throughout Minnesota. In addition, Al-Corn ships its products to markets throughout the United States and around the world. 

“While some may say we are a ‘first-generation’ ethanol plant, the reality is we are in the forefront of the ethanol industry due to our relentless focus on continuous improvement” said Al-Corn CEO Randall Doyal. “Al-Corn continues to utilize innovative technologies and creativity in order to reduce energy consumption and production costs while at the same time increasing efficiencies and reducing emissions.” 

The Al-Corn plant has reduced water consumption to less than 2.2 gallons of water per gallon of ethanol and was the first plant to achieve “zero liquid discharge”. Energy conservation efforts have reduced the plant’s energy use by more than 38% compared to the original plant design. 

The many benefits created by Al-Corn continue to benefit our local communities. Al-Corn has raised the local price of corn for every farmer in the area, which has helped support land values and rents in the region. Since its founding, Al-Corn has become a significant economic driver, having paid over $1 billion in corn for processing. The earnings to its owners, the direct and indirect jobs that have been created and the property and other taxes paid tell the true impact of this local success story and how Al-Corn continues to create benefits far beyond the wildest dreams of its original founders. 

For additional information regarding Al-Corn Clean Fuel, please visit  www.al-corn.com.

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