In the News
November 9, 2017
By Julie Breneman
After 10 years of research, University of Minnesota Duluth’s National Resources Research Institute delivered solid results this fall. As in solid biofuels. By the ton.
And while this is exciting progress, the NRRI is already gearing up for the next steps of biofuel development.
Starting at the bench scale in 2003 and fiddling with mixture after mixture, NRRI is now able to produce solid biofuels that perform at comparable energy values to coal in fossil coal-burning facilities. The biofuel emissions have no heavy metal pollutants and greatly reduced sulfur levels. As an added benefit, the biomass feedstock can be invasive plants, woody and agricultural waste, secondary wood species, and beetle-killed wood resources.
NRRI envisions this to be a supplement to fossil coal that helps reduce harmful coal emissions to meet state and federal mandates while minimizing new capital requirements at existing power and industrial plants.
“What’s really exciting, and what we’ve been working so hard on, is being able to produce this product at a commercially-relevant scale,” said Don Fosnacht, NRRI initiative director for renewable dnergy. “We had to find a way to make it physically robust and water-resistant for easy shipping and handling, and scale it up to 6 tons per day output. It wasn’t easy.”
The United States is moving away from fossil fuels—Oregon is the first state to aim for coal-free power by 2020—but the transition will be slow. NRRI helped to monitor a significant trial of solid biofuel at a Portland electric plant in 2017. They completely replaced the fossil coal with 3,500 tons of biofuel with only minor mechanical changes. This trial demonstrated that this similar biofuel provides roughly 2,500 Btu per pound increase over typical output for Powder River Basin coals.
The biofuel can be made with two processes: torrefaction (a dry roasting method) or hydrothermal carbonization (a pressure cooking method). NRRI’s large scale rotary kiln is best for roasting wood chips to make solid fuels. The second reactor is like a large pressure cooker that can take other plant biomass (milfoil, invasive cattails and agricultural waste) to make an “energy mud” that is formed into solid fuels.
“If you think about how Mother Nature made fossil coal, it’s time, pressure and heat,” explained NRRI Engineer Tim Hagen. “We’re doing those same processes, but instead of millions of years, we’re doing it in a few hours. And because minerals don’t get into the mix, we don’t have those potential pollutants.”
And while this is exciting progress, NRRI is already gearing up for the next steps of biofuel development. Using a high pressure gasification process on the solid fuels, they hope to demonstrate the conversion of the solid biofuel into a synthetic natural gas (sometimes called “syngas”). Other products would be high value chemicals, liquid fuels and activated carbon.
White wood pellets have made it to market as a coal alternative and they’re a large U.S. export to Europe. But unlike NRRI’s solid biofuel, white wood pellets require major infrastructure changes at the power plant including massive warehouses, and they easily break down during transport and exposure to weather.
NRRI’s renewable energy research was funded by a grant from Xcel Energy, Minnesota Next Generation Energy Board/MN Dept. of Agriculture, Minnesota Power, Heetway, K.R.Komarek, Inc. and the Consortium for Advanced Wood to Energy Solutions.
Read the original article: NRRI Develops Solid Biofuel to Offset Coal
November 8, 2017
By the Renewable Fuels Association
Consumers have been saving money thanks to ethanol for years, but never as much as today. Nearly every consumer that chooses ethanol at the pump is saving money, whether using regular unleaded with 10% ethanol (E10), mid-grade with 15% ethanol (E15), or any one of the many flex fuel options like E85.
According to crowd-sourced data from the Renewable Fuels Association’s E85prices.com, the national price spread between regular unleaded and E85 has never been greater in the 17 years of tracking on the website. That price differential is currently at 33% for the month of November, or more than 8 percentage points higher than any other month in recorded history on the website. In many locations today—including California, Ohio, Iowa, Kentucky, Indiana and Illinois–E85 is at least $1 per gallon cheaper than E10. On average nationwide, flex fuel vehicle drivers who fill up with 20 gallons of E85 are saving $14 per tank over drivers who fill up with E10. Even when ethanol’s lower energy density is factored in, E85 costs less than E10 per mile driven.
The advantageous price scenario is due to the widening price spread between ethanol and gasoline, but also the strong value of Renewable Identification Numbers (RINs) credits. In recent weeks, wholesale ethanol prices have been 15-20% below wholesale gasoline prices—the largest discount in more than two years.
Fuel blenders are further discounting the price of ethanol blends by passing along the value of RIN credits to retailers and consumers. Blenders capture the RIN credit when they blend ethanol with gasoline; they can then sell the RIN credit to other blenders or refiners and share some or all of the profit from that sale with retailers and consumers by marking down the price of the ethanol-blended fuel.
“This once again demonstrates the ability of ethanol to save consumers money, and proves the Renewable Fuel Standard and RINs are working to drive expanded use of cleaner, cheaper renewable fuels,” said RFA Vice President of Industry Relations Robert White. “The combination of various federal, state and industry infrastructure funding initiatives, along with the value of RINs, are allowing fuel retailers the ability to invest in infrastructure, while also passing along savings to the consumer. We are seeing tremendous growth in the availability of higher blends of ethanol at the retail level, and at a price point that will interest anyone looking to save money at the pump,” he added.
Ethanol detractors have claimed that RINs are a tax that negatively impact consumers, but the marketplace is showing otherwise. Those that have chosen to embrace the RFS are helping consumers daily.
“There are always stations that defy logic by charging more for E85 than unleaded, but those stations are becoming a rarity,” said White. “Most retailers are agnostic about what products they offer, as long as they have margin and volume. Right now, higher ethanol blends are offering a significant opportunity for blenders, retailers and consumers alike.”
Read the original article: Consumers Win with Ethanol
Press Release
November 8, 2017
ENGLEWOOD, Colo., Nov. 08, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that its alcohol-to-jet fuel (ATJ) derived from renewable isobutanol is being used today by eight commercial airlines for Fly Green Day, sponsored by the O’Hare Fuel Committee, at Chicago O’Hare International Airport. This event is the first time renewable jet fuel has been supplied at Chicago O’Hare using the existing airport fueling infrastructure, such as pipelines, terminals and tankage.
To date, airlines and airports have generally relied on alternative means of supplying renewable jet fuel to the wing, usually trucking jet fuel on site for blending and fueling. For today’s Fly Green Day, Air BP blended Gevo’s ATJ with regular fossil-based Jet A fuel, certified its quality and then supplied its customers through the airport’s main fuel hydrant system.
Commercial airlines participating in today’s event are:
-Lufthansa
-United Airlines
-Etihad
-Cathay Pacific Airways
-Emirates
-Japan Airlines
-Korean Air
-Atlas Air
“This is the first time we have supplied our customers with biojet produced from alcohol and demonstrates how we are working with multiple suppliers to build a leadership position in this area,” said Air BP’s Chief Executive Officer Jon Platt. “We anticipate that through this promotion we will inspire more of our customers to use lower carbon fuels.”
“We are excited to be a part of this project. This is the next stage in development of our goal to reduce greenhouse gas emissions and move forward with the full commercial deployment of renewable jet fuel,” said Thorsten Luft, Vice President Corporate Fuel for Lufthansa AG.
“This is a significant milestone as we continue to develop our ATJ platform. We fundamentally believe that our ATJ is one of the most cost competitive bio-based jet alternatives in the market place. Leveraging existing supply infrastructure should lower the full cost to serve our end customers. Jet fuel is one of Gevo’s core market segments and this represents the next step in building a profitable business from this market vertical,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.
Read the original press release: On Fly Green Day, Eight Airlines Fly with Gevo’s Jet Fuel from O’Hare Air BP Provides Commercial Validation of Jet Fuel Delivery System at Chicago O’Hare with Renewable Jet Fuel
November 4, 21017
by Natalie Howell
U.S. Sen. Amy Klobuchar visited the Green Plains ethanol plant in Fairmont on Friday to talk about local and national issues with company representatives and local leaders.
The stop in Fairmont is part of a six-county tour through southern Minnesota, where Klobuchar has been meeting with different companies and local representatives to talk about the economy and issues facing communities.
Green Plains, based in Omaha, Nebraska, is the second-largest ethanol producer nationally. The Fairmont location is one of two Green Plains ethanol plants in Minnesota, with the other one in Fergus Falls. The Fairmont location has 61 employees. Executive vice president Steve Bleyl and plant manager Jon Richardson represented Green Plains in the meeting.
“Fairmont’s been good to us,” Bleyl said. “We try to keep a lot of our business local as close as we can. We try to get that money spread out.”
State Rep. Bob Gunther and Fairmont Mayor Debbie Foster joined Klobuchar to talk about issues facing the community.
Foster said the main concern she has for Fairmont is attracting skilled workers to the area, and the ability to support the workforce through affordable housing and daycare. However, she is encouraged by the City Council’s willingness to take risks and work toward bringing workers to Fairmont.
“The majority of the council I think is willing to say, ‘You know what, I think we need to do something.’ We do need to do something,” Foster said.
A topic of conversation Friday that has been in the national news over the past month is the issue of the 2018 Renewable Fuel Standard. The RFS is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
The standard was created to expand the renewable fuels industry in 2005, and the volume standards were laid out through 2022 when the law was expanded in 2007. However, the U.S. Environmental Protection Agency can alter the standards in order to protect the economy.
The EPA proposed a reduction in the 2018 Renewable Fuel Standard blending requirements. Following this proposal, a bipartisan group of 38 senators, led by Klobuchar and Sen. Chuck Grassley, R-Iowa, sent an open letter to EPA Administrator Scott Pruitt to show opposition to the proposed changes and stress the importance of the renewable fuel on the U.S. economy.
Recently, Pruitt announced that EPA will no longer be moving forward on proposals to lower RFS levels.
Klobuchar said the issue of renewable fuel has more to do with geography than party lines, which is why there is bipartisanship on both sides of the issue.
“We’ve really built coalitions along party lines, and that’s good,” she said. “It’s always better to be in that position. And we’ve been able to ward off efforts to basically get rid of ethanol and we don’t like that at all. We would rather be spending money and supporting the workers of the Midwest instead of the oil companies in the Middle East.”
Read the original article: Senator Weighs In On Ethanol
November 1, 2018
By Erin Voegele
The White House Office of Management and Budget is reviewing the U.S. EPA’s final rule to set 2018 Renewable Fuel Standard renewable volume requirements (RVOs), along with the 2019 RVO for biomass-based diesel. OMB review marks a final step before the final rule is released to the public. Under statute, the EPA is required to issue a final rule establishing 2018 RVOs by Nov. 30.
The EPA first released its proposal to set 2018 RVOs and the 2019 RVO for biomass-based diesel on July 5. The proposal calls for 19.24 billion gallons of total renewable fuel, including 238 million gallons of cellulosic biofuel, 2.1 billion gallons of biomass-based diesel and 4.24 billion gallons of advanced biofuel. The 2.1 billion gallon biomass-based diesel requirement for 2018 was finalized last year. For 2019, the new proposal calls for the biomass-based diesel RVO to be maintained at 2.1 billion gallons.
When compared to the final RVO for 2017, the requirement for total renewable fuel drops slightly from 19.28 billion gallons to the proposed 19.24 billion gallons. The cellulosic RVO has also been lowered, from 311 million gallons in 2017 to a proposed 238 million gallons in 2018, with the advanced biofuel requirement dropping from 4.28 billion gallons in 2017 to a proposed 4.24 billion gallons in 2018. The final RVO for biomass-based diesel in 2017 was set at 2 billion gallons.
A comment period on the proposal opened July 21 and ran through Aug. 31. Approximately 236,370 comments were filed on the proposed rule.
On Sept. 26, the EPA published a notice of data availability (NODA) contemplating reductions in 2018 and 2019 RVOs. The potential reductions primarily targeted biomass-based diesel, but could potentially results in corresponding reductions in RVOs for advanced biofuels and total renewable fuels.
The NODA cites issues related to the cost and supply of biofuels as reasons for the EPA’s action. Specifically, the NODA cites the expiration of the $1 per gallon biodiesel tax credit and a recent preliminary determination by the U.S. Department of Commerce that it would be appropriate to place countervailing duties of 41 percent to 68 percent on imports of biodiesel from Argentina and Indonesia as factors that could impact the cost and supply of advanced biofuels.
The NODA was subject to a 15-day comment period that closed Oct. 19. Approximately 40,017 comments were filed on the proposal.
Several senators, members of congress, governors and groups representing the biofuels industry fought back against the EPA’s proposed action. As a result, EPA Administrator Scott Pruitt issued a letter Oct. 20 in which he indicated the EPA expects to set final 2018 RVOs at or above proposed levels. Pruitt also said the EPA would issue a final rule maintaining the current point of obligation under the RFS within 30 days. In addition, Pruitt said the EPA is actively exploring whether it possesses the legal authority to extend the Reid vapor pressure (RVP) waiver to fuel blends containing more than 10 percent ethanol. He also noted the EPA has not and will not take any formal action to propose amending RFS regulations to allow renewable identification numbers (RINs) to be attached to exported volumes of ethanol.
Read the original article: OMB Reviewing Final Rule To Set 2018 RFS RVOs
October 27, 2017
By Renewable Fuels Association
Drivers of flex fuel vehicles (FFVs), which can handle higher ethanol blends up to 85 percent, now have even more places to fuel up. According to E85prices.com, operated by the Renewable Fuels Association, there are now more than 4,000 stations throughout the U.S. offering E85.
There are more than 22 million FFVs on U.S. roads and now consumers have greater access to higher ethanol blends. Minnesota offers the most E85 stations, but states outside the Corn Belt have shown the greatest uptick in recent years. States like California, Texas, Florida, North Carolina and Pennsylvania have demonstrated tremendous growth in offering higher ethanol blends.
Greater consumer access to E85 is due to a combination of factors, including RFA’s overall market development efforts, the past Blend Your Own Ethanol Campaign, U.S. Department of Agriculture’s Biofuels Infrastructure Partnership Program, and the ethanol industry-funded Prime the Pump initiative.
“Reaching this milestone is a tremendous achievement,” said RFA Vice President of Industry Relations Robert White. “Consumers with FFVs ought to have access to E85, whether they’re in Iowa, California or Florida. This expansion allows consumers with FFVs in many areas the opportunity to fuel with E85 for the first time. We applaud retailers for increasing efforts to bring further consumer choice to the market and we look forward to more stations opening up in the future.”
“Today’s news should also further show EPA that there is ample ethanol blending capability to accommodate higher Renewable Fuel Standard Renewable Volume Obligation requirements than what the agency has proposed,” White added. “If just half of the FFVs on the road today used E85, there would be more than 6 billion gallons of E85 demand, and you cannot ignore the growing demand from E15 and other blends. EPA must acknowledge this reality in its final 2018 RFS rule.”
E85prices.com is crowdsourced and offers updated prices and locations for E85, E15 and other ethanol blends from thousands of stations across the country.
Read the original article: RFA Data: More Than 4,000 US Stations Offering E85
October 17, 2017
By Jim Grey
The current policy landscape in Canada is exciting to say the least. The federal government is crafting a Clean Fuel Standard to reduce Canada’s greenhouse gas (GHG) emissions by 30 megatonnes of carbon dioxide equivalent per year, with the transportation sector being one of three key targets.
Meanwhile, Quebec and Ontario are looking to implement new policies supporting the use of ethanol.
Within this context of a concerted build-out of policy supporting renewable fuels, Renewable Industries Canada (RICanada) welcomed a new Conference Board of Canada report, Renewable Fuel Standards Within a Low-Carbon Fuel Strategy, released in September. According to the report, maintaining blend mandates is critical to the success of Canada’s climate change agenda as it relates to the reduction of transportation emissions in the near and longer term.
The transportation sector is a top source of GHG emissions in Canada and is projected to grow with population and GDP growth. Maintaining volumetric requirements for renewable fuels such as ethanol and biodiesel will be an integral part of Canada’s transition to a low carbon future.
The report says a “clean fuel standard that fails to maintain, or expand, current blend mandates for renewable fuels is not recommended.” Moreover, the report concludes that clean fuels targets envisioned as part of a broader CFS are almost certainly unattainable without mid- to high-level blending of renewables into the fuel stream.
Mark Jaccard, Professor of Sustainable Energy Economics at Simon Fraser University, says, "Governments have yet to achieve the levels of carbon pricing needed to transition the transportation sector away from fossil fuels. Until such time, renewable fuel standards should not be weakened and may need to see their stringency increased, especially if flexible policies like the low carbon fuel standard are not quickly implemented and tightened."
The report also reinforces that the environmental benefits of blending renewable fuels, such as ethanol and biodiesel, are clear and well-documented. For instance, ethanol’s national 5 percent mandated content in gasoline helps reduce GHG emissions by 4.2 megatonnes annually, equivalent to 1 million cars being removed from Canada’s roads each year.
Beyond retaining the environmental benefits of the fuels, as the Conference Board notes, blend mandates also provide retail market access to low-carbon fuels for consumers, and a stable investment environment for the renewable fuels industry.
At the end of the day, ethanol is the only low-carbon, renewable fuel alternative for gasoline available at commercial scale, meaning that retaining—and, ideally, increasing—blend mandates will help ensure the availability of low-carbon octane to the Canadian fuels market and realization of these benefits.
Canada is urgently developing policy that will allow it to meet its commitments in the Paris Accord. As a part of this process, it is impossible to ignore both the historic contribution of renewable fuel standards that set a volume-based benchmark, and the forward-looking analysis brought forward by groups such as the Conference Board of Canada that call for their use well into the future.
Read the original story: Study: Biofuels Key in Reducing GHG Emissions
October 16, 2017
Last Friday, Australian based Qantas Airways announced that its Los Angeles based aircraft will be powered by biofuel from 2020 onwards.
The announcement came in the wake of a commercial agreement with US-based bio-energy company SG Preston, which was called a “landmark” agreement.
Over the next decade, Qantas Airways will be purchasing eight million gallons, i.e. 30 million liters, of renewable jet fuel each year, which will consist of 50 percent out of non-food plant oils blended with 50 percent traditional jet fuel.
Compared to standard jet fuel, the biofuel emits half the amount of carbon emissions per gallon over its life cycle.
Gareth Evans, CEO of Qantas International and Freight stated that the commercial biofuel agreement is the first of its kind in the Australian aviation history.
He said: “The partnership with SG Preston is part of our commitment to lowering carbon emissions across our operations and sees us becoming the first Australian airline to use renewable jet fuel on an ongoing basis”.
He added: “Through our biofuel program we are also exploring renewable jet fuel opportunities in Australia and continue to work with suppliers to develop locally produced biofuels for aviation use”.
Randy Delbert LeTang, SG Preston’s CEO commented: “Qantas is showing great leadership in its commitment to biofuels”.
“We look forward to providing a high-performance renewable fuel for one of the most important routes on their international network”.
Michael Gill, Director of Environment for IATA applauded the new partnership, as he underlined that “deals such as these are critical to the development of an aviation biofuel sector globally and the achievement of the aviation industry’s climate goals”.
In 2012, Qantas and Jetstar operated Australia’s first commercial flight powered by sustainable aviation fuel as a trial flight.
The flight was Sydney-Adelaide return and was powered by biofuel derived from used cooking oil, split 50:50 with conventional jet fuel.
International Civil Aviation Organization reached a carbon-offset agreement in 2016 which called for a worldwide reduction in commercial aviation emissions to 50 percent of 2005 levels by 2050.
Read the original story: Qantas Airways to Operate Biofuel Flight from LA to Melbourne by 2020
More...
October 19, 2017
By Gary Wertish
By now, it’s obvious that the farm economic crisis is largely caused by an oversupply of corn and soybeans with not enough demand. Meanwhile, climate change looms large over the United States, one of the symptoms being destructive hurricanes that damage oil refineries in Texas.
We can look to previous farm depressions for advice. In the past, renewable fuels have been key in raising producers out of tough times. This is why it makes no sense that the U.S. Environmental Protection Agency (EPA) has announced lower proposed renewable fuel volume obligations under the Renewable Fuel Standard (RFS). Corn growers sell millions of bushels of corn to ethanol plants every year. Soybean growers need more opportunities to market their products, like biodiesel. The U.S. needs to reduce its dependence on fossil fuels.
President Donald Trump has said on multiple occasions that he wants to grow the ethanol industry. That’s a good promise to keep. But his energy secretary, Rick Perry, asked the EPA to waive half the conventional renewable fuel quota as Texas governor in 2008, according to a Bloomberg News story. His EPA Administrator, Scott Pruitt, is the leader of the agency that seems to be working against the interests of U.S. farmers and the environment.
EPA has released a Notice of Data Availability, inviting public comments on “potential options for reductions in the 2018 biomass-based diesel, advanced biofuel and total renewable fuel volumes, and/or the 2019 biomass-based diesel volume under the (RFS) program.” The notice includes suggestions of reducing biomass-based diesel by 315 million gallons. This would drop the total Renewable Volume Obligation (which includes conventional ethanol) to 18.77 billion gallons from 19.24 billion gallons.
The good news is that there’s nothing mentioned about changing the Trump administration’s call for 15 billion gallons of availability for conventional biofuel, which is typically corn ethanol. However, the fact that EPA is considering rolling back renewable fuels of any kind is still a concern. The RFS law is intended to expand markets for biofuels produced in the U.S. Plus, biofuels provide jobs for rural America and lower the cost of fuel for consumers.
Another piece of good news for Minnesota is the B20 mandate. Starting in spring 2018, diesel fuel sold here will be required to contain at least 20 percent biodiesel. That’s an increase from the current B10. The entire nation should be going this direction.
We need ethanol and other biofuels because they are grown in the United States, provide a boost to farmers and reduce our dependence on fossil fuels. Some of the biggest oil refineries in America were just hit hard by Hurricane Harvey and were shut down for weeks, driving gas prices up everywhere. Turning to more renewable fuels can ease that pain in the future.
Minnesota Farmers Union urges the EPA to increase biofuel volume requirements – not decrease them.
Read the orignal story: Op-Ed: High Renewable Fuel Standard Crucial to Help Farmers and Climate
October 20, 2017
The U.S. Environmental Protection Agency has backed off a series of proposed changes to the nation’s biofuels policy after a massive backlash from corn-state lawmakers worried the moves would undercut ethanol demand, according to a letter from the agency to lawmakers seen by Reuters.
The letter could end uncertainty about the future of the U.S. Renewable Fuel Standard under the administration of President Donald Trump that has roiled commodity and energy markets for months. The program, which requires refineries to blend increasing amounts of ethanol and other biofuels into the nation’s fuel supply every year, appeared on the verge of a massive overhaul.
EPA Administrator Scott Pruitt said in the letter dated Oct. 19 that the agency will keep renewable fuel volume mandates for next year at or above proposed levels, reversing a previous move to open the door to cuts. He said the EPA would not pursue another idea floated by EPA leadership that would have allowed exported ethanol to be counted toward those volume quotas.
Pruitt also said the EPA did not believe a proposal to shift the biofuels blending obligation away from refiners was appropriate. That plan is backed by representatives of a handful of independent refining companies.
Those ideas would have eased the burden on some in the refining industry, who have argued that biofuels compete with petroleum, and that the blending responsibility costs them hundreds of millions of dollars a year.
But Midwestern lawmakers, including Republicans Charles Grassley and Joni Ernst, had vocally opposed all those ideas, calling them a betrayal of the administration’s promises to support the corn belt. They were concerned the moves would undercut domestic demand for ethanol, a key industry in the region that has supported corn growers.
In Pruitt’s letter, he said the EPA was prepared to work with Congress to examine the possibility of a waiver that would allow the sale of E15 gasoline, containing 15 percent ethanol, year-round - something currently not permitted during the summer due to concerns about smog.
Renewable Fuels Association President and CEO Bob Dinneen said in a response to the letter on Friday morning that the U.S. ethanol industry was “grateful for Administrator Pruitt’s epiphany on the road to the RFS.”
Read the letter from Pruitt here.
Read the original article: EPA Abandons Changes to U.S. Biofuel Program After Lawmaker Pressure
October 18, 2017
By Jennifer Jacobs, Jennifer A Dlouhy, and Ari Natter
President Donald Trump intervened personally with the Environmental Protection Agency amid pressure from Republicans in the politically important state of Iowa who worried the agency was poised to weaken biofuel quotas, three people familiar with the discussions said.
Trump directed EPA Administrator Scott Pruitt to back off any changes that would dilute a federal mandate for biofuel use, the people said. A top EPA official said Trump’s urging was unnecessary because Pruitt wasn’t planning on weakening the mandate.
Nevertheless, the agency was told by the White House to drop two changes that were under consideration: a possible reduction in biodiesel requirements and a proposal to allow exported renewable fuel to count toward domestic quotas, said the people, who asked not to be identified because they were not authorized to speak publicly about the move.
The issue is politically treacherous for the president because it pits his allies in the oil industry against Midwest voters who helped elect him, including Iowans who hold first-in-the-nation presidential caucuses. While campaigning in Iowa last year, Trump pledged to protect ethanol and the biofuel mandate.
Trump called Iowa Governor Kim Reynolds Wednesday to reassure her of his commitment to the program. "It was a really good, productive conversation," she said in an interview.
Pruitt has also been working behind the scenes to soothe Midwestern politicians and biofuel backers alarmed by the possible changes the EPA was considering, the top agency official said.
Reynolds is one of a phalanx of Midwest politicians who have lobbied the administration by highlighting the president’s promises to support ethanol and signaling that any move to weaken annual quotas would be seen as a betrayal.
"They are feeling the pressure, and that’s why we need to keep it up, we can’t let down," Reynolds said during a press conference with biofuel backers in Pella, Iowa.
The 12-year-old Renewable Fuel Standard compels refiners and importers to use biodiesel and alternative fuels such as corn-based ethanol. It is especially valued in the Midwest, where corn and soybean farmers see the program as vital to ensure predictable demand. But the RFS also is opposed by many oil refiners that argue it’s a costly and burdensome mandate that forces them to blend ethanol into gasoline -- or buy credits to make up the difference.
It was not immediately clear whether the administration’s assurances -- which weren’t announced publicly -- will be enough to satisfy lawmakers who have threatened to stall EPA nominees over the issue. The EPA official said the latest information they have is that the senators are not holding up any particular nominee.
But Iowa Republican Senator Joni Ernst refused to commit to backing one EPA nominee in a news release Wednesday, only saying she was close to getting the assurances she needed.
The EPA has a Nov. 30 deadline to finalize next year’s quotas, and it may not announce any changes before then.
"The proof is in the pudding," said Monte Shaw, head of the Iowa Renewable Fuels Association. "We need to see the details."
The EPA ignited a backlash last month when it asked for public comment on potential biofuel quota reductions and floated the idea of a 15 percent reduction in requirements for biodiesel. Pruitt has said that notice was only seeking comment, not committing to any reduction in biofuel quotas.
Separately, EPA staff had been considering a proposal from some refiners to allow some exported biofuel to count toward the domestic mandate -- a move that would make it easier and cheaper to meet annual domestic quotas. Pruitt is also concerned about imported biodiesel being used to fulfill the quotas and jeopardizing U.S. energy independence.
The market for credits refiners use to show compliance with the mandates indicates that traders think ethanol backers will prevail.
Renewable Identification Numbers tracking ethanol consumption for 2017 fell in late September after the reports of possible EPA changes. Since hitting a low of 66 cents per credit on Sept. 28, those RINs bounced back to 83 cents apiece after news emerged that Trump had intervened.
Pruitt has assured people he is following through on Trump’s pro-ethanol promises. In July, the agency proposed requiring U.S. refiners use 15 billion gallons of conventional renewable fuels in 2018 -- the maximum allowed under the Renewable Fuel Standard. Oil refiners had pushed for a lower target.
And agency officials have been studying whether they have authority to allow gasoline containing 15 percent ethanol to be sold year-round, something the biofuel industry is seeking.
But news of possible changes to other parts of the program provoked a strong response from Midwestern Republicans, led by Iowa Senator Chuck Grassley who immediately began pressuring the Trump administration to back off those ideas.
Grassley took to Twitter to blast a "bait and switch" by the administration, saying any moves to weaken the Renewable Fuel Standard program conflicted with Trump’s vow to support ethanol and Pruitt’s assurances to uphold congressional intent behind the mandates during his confirmation hearing.
"You can get in the weeds about what you want to do or not do in the way of policy, but this is an issue of the president keeping his promise," Grassley said Tuesday.
Trump urged Pruitt to work with Grassley to resolve the issues.
Farm-state senators met with Pruitt over the issue on Tuesday, after Ernst told reporters she couldn’t commit to backing a nominee to head the EPA air office that administers the renewable fuel program. A planned Senate committee vote on that nomination, scheduled for Wednesday, was scrapped afterward. Ernst is a member of that committee, on which Republicans hold a narrow 11-10 margin.
"A handful of senators completely cornmailed the administration by threatening to hold nominees hostage until they get their way," Stephen Brown, the head of federal affairs for refiner Andeaver, said in an email. "Faced with tactics that would have made Don Corleone blush, the administration essentially had no choice but to relent."
On Wednesday, Ernst said she was close to getting the reassurances she needs.
“My staff and I will continue to keep a watchful eye as these assurances come to life, and while we are still in negotiations, I do feel good about the direction we are headed," Ernst said in an emailed statement.
Outside analysts predicted that Iowa’s political clout will help it prevail in the end.
"The track record here has been pretty strong with these Midwest senators," said Paul Niznik, a consultant to refiners and others who track the RIN market for Argus Consulting Services. "We know it’s not going to happen. It looks like political theater."
Read the orignal article: Trump Tells EPA to Boost Biofuels After Iowa Uproar
October 16, 2017
By Emily Druckman
Despite continued claims by opponents of the Renewable Fuel Standard (RFS), prices of the Renewable Identification Number (RINs) credits used for RFS compliance have not caused changes in retail gasoline prices, according to a new analysis by Informa Agribusiness Consulting.
The analysis, commissioned by the Renewable Fuels Association (RFA), looked at trends in the prices for conventional biofuel RINs and retail gasoline from 2013 to the summer of 2017.
“Based on statistical analysis, it can be concluded that changes in RIN prices did not ‘cause’ the changes that occurred in retail gasoline prices in 2013, and this has continued to be the case through the summer of 2017,” according to Informa Agribusiness Consulting. Instead, the price of retail gasoline has been primarily driven by movements in crude oil prices and by changes in the spread between domestic and international crude oil prices, as well as seasonal demand, the analysis found.
“…[C]hanges in RIN prices have not caused changes in retail gasoline prices (or vice-versa). To any extent that the two are related, it is not a direct causal relationship,” the analysis noted.
“EPA seems to be on a mission to lower the price of RINs,” said RFA President and CEO Bob Dinneen. “The Agency’s proposed 2018 RFS renewable volume obligations, which for the first time lowered the total RFS volumes from the previous year, a subsequent Notice of Data Availability proposing to lower the RFS further to reflect anticipated reductions in imported biodiesel, and rumors of an impending proposal to allow exported biofuel to qualify for the domestic program, all would have the effect of lowering the price of RINs. But this analysis demonstrates that EPA’s efforts will have no impact on consumer gasoline prices. If finalized, however, these proposals will have a decidedly negative impact on the U.S. ethanol industry by artificially cannibalizing demand. If the intent is to lower the price of RINs, EPA should consider expanding ethanol demand by empowering consumers to utilize higher level ethanol blends. After all, ethanol is less expensive than gasoline today and RINs attached to each gallon of ethanol purchased from a producer are free,” he said.
“Thanks to the RFS, U.S. ethanol jobs have grown 121% and the value of ethanol’s output quadrupled to $32.8 billion in 2016. Big Oil needs to stop scapegoating the RFS and ethanol. The RFS is helping to bring the cleanest, lowest-cost and highest-octane fuel to consumers, and no amount of obfuscation can dispute that fact,” Dinneen added.
The Informa Agribusiness Consulting analysis is available here.
Read the original story: New Statistical Analysis: No Relationship Between RIN Credits and Retail Gasoline Prices
Press Release
October 17, 2017
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WASHINGTON, D.C. – U.S. Senator Joni Ernst (R-IA), a member of the Senate Committee on Agriculture, Nutrition, and Forestry and the Senate Committee on Environment and Public Works, issued the following statement after meeting with Environmental Protection Agency (EPA) Administrator Scott Pruitt to express her significant concerns over the agency’s recent action to potentially set biodiesel volumes in the Renewable Fuel Standard (RFS) for 2018 and 2019 at substantially lower volumes, which could in turn, hurt Iowa farmers, manufacturers, and rural communities. “Iowa is the largest producer of ethanol and biodiesel in the nation. Our farmers, ranchers and rural communities depend on maintaining a strong RFS. Time and again, the RFS has proven to be a major driver of alternative fuels and economic development. “Throughout his confirmation process, Administrator Pruitt promised me multiple times that he would uphold the spirit of the RFS, as intended by Congress. Additionally, the President has consistently stated his support for biofuels and made it clear to Administrator Pruitt that he is supportive of the RFS. While the administrator has insisted that the recent actions taken by the EPA are simply to receive additional input on the RFS from stakeholders, it is evident that the ‘stakeholders’ he refers to are not the farmers and manufacturers across the State of Iowa who would be directly affected if the biodiesel volume requirements were lowered. “Our meeting today was another clear demonstration that biofuel-producing states will never stop fighting to protect the RFS. Administrator Pruitt again claimed today that he will not do anything to undermine the program. However, we have heard this before. We now need to see it. I will continue to work with the EPA, but they must prove to the agricultural community who put their faith in this administration that they will fulfill their promise to maintain the letter and the spirit of the RFS. We will not accept anything less.” |
Senator Ernst has been a vocal opponent of any actions taken to lower RFS volumes, stressing her position through letters to EPA Administrator Pruitt and to President Trump. The Senator received commitments from Administrator Pruitt in their pre-confirmation meeting and during his confirmation hearing that he would follow the law and maintain the RFS.
Read the original press release: Ernst Meets with EPA Administrator Pruitt to Stress Need to Maintain a Strong RFS
October 11, 2017
By Trey Mewes
As federal officials back off of the Obama-era Clean Power Plan, U.S. Sen. Al Franken believes there's going to be more work to do to ensure farmers and rural communities benefit from renewable energy sources.
The Minnesota Democrat met with regional agriculture and energy experts Wednesday at Minnesota State University to discuss energy initiatives that will be included in the 2018 farm bill.
"This is added value to our agricultural products," Franken said. "Biofuels, in terms of ethanol and biodiesel, is extremely important to our economy."
Minnesota is one of the nation's leading renewable energy producers, and about 1 in 5 Minnesotans have agriculture-related jobs.
Franken, who serves on the Senate Energy Committee, is helping to write an energy component to the farm bill that could tweak a few energy programs to better fund renewable energy efforts. The bill would, among other things, link federal funding between fire hazard reduction and reducing undergrowth in forests by removing biomass.
One of those tweaks would remove a requirement that bio-based material work needs to produce energy, which experts say could open the door to more plastics, chemicals and other products made from bio-material.
Mike Youngerberg of the Minnesota Biodiesel Council points to a new kind of asphalt sealant made from biodiesel products that works better than current oil-based sealants.
Farmers could one day be able to grow 100 bushels of corn or soybeans for every lane mile, and renewable energy representatives are pushing state officials to use the biodiesel sealant on roads, bridges and parking lots across Minnesota.
"The city of Hutchinson, Minnesota, is saving material on their road maintenance budget just by preserving what they have," Youngerberg said.
Other projects that came up included converting wood chips into biofuel to heat turkey barns, and potential energy storage improvements with renewable fuels that would decrease costs for rural and low-income areas if implemented.
Some experts even advocated for more flexibility to pursue industrial hemp products — which is different than marijuana-based products, though the two have been linked in agricultural and manufacturing discussions in the past.
"We think as a specialty crop it would open some doors for us," said Dan Skogen, a former state senator who serves as the planning and government relations director for the Agricultural Utilization Research Institute.
Yet the energy and ag experts were mainly concerned with securing enough funding to continue renewable energy initiatives such as the Rural Energy for America Program grants and loans.
"There are a lot of great products that could come out of some of these," said Joe Smentek, director of public affairs for the Minnesota Soybean Growers Association. "But if they're not fully funded, if they're not funded adequately, they're worthless."
It appears the Trump administration is souring on renewable energy, however. Environmental Protection Agency Administrator Scott Pruitt announced this week the EPA would roll back greenhouse gas regulations established under former President Barack Obama. And President Donald Trump has publicly pushed for more coal and oil energy in the past.
Franken said after the meeting that despite the president and his administration's opposition to some renewable energy issues, Congress needed to push on as more renewable energy gets produced across the U.S.
"There's no question that ethanol is much more efficient than gasoline in terms of what we're putting in and what we're getting out," Franken said.
Read the original story: Farm Bill Energy Issues Essential for State, Franken Says
Visalia, Calif. October 12, 2017 – Edeniq, Inc., a leading cellulosic and biorefining technology company announced today that the U.S. Environmental Protection Agency (“EPA”) has approved Flint Hills Resources’ registration of its 100 million gallons per year Iowa Falls, Iowa ethanol plant for cellulosic ethanol production using Edeniq’s technology.
Iowa Falls is the fifth existing ethanol plant to receive approval from the EPA for cellulosic ethanol production using Edeniq’s Pathway technology. The four existing ethanol plants that have previously received this approval are: Pacific Ethanol’s Stockton, CA plant; Flint Hills Resources’ Shell Rock, IA plant; Little Sioux Corn Processors’ Marcus, IA plant; and, Siouxland Energy Cooperative’s plant located in Sioux Center, IA.
Edeniq’s registered customers now total 500 MGPY of nameplate ethanol capacity and are averaging more than one percent cellulosic ethanol. Customers’ cellulosic ethanol yields have increased on average in 2017, and Edeniq expects its technology will continue to advance cellulosic yields for its customers. Significant results are now being shown from process improvements and tuning, yielding ever-increasing production and product diversification.
Edeniq’s technology remains the lowest-cost solution for producing and measuring cellulosic ethanol from corn kernel fiber utilizing existing fermenters at existing corn ethanol plants, and has already proven cellulosic ethanol yields of up to 2.5% or higher, as a percentage of its customers’ total volume output. Once approved by EPA, customers are eligible to qualify cellulosic gallons with D3 RINs, which are considered the most valuable on the RIN market. Additional benefits of Edeniq’s technology include increases in corn oil production and greater overall ethanol yields, all provided by a zero-capex cellulosic ethanol production option.
Cam Cast, Edeniq’s Chief Operating Officer, remarked that, “With the investment, partnership and success of existing corn ethanol plants like Flint Hills Resources, Edeniq is the clear market leader in its technology that is enabling—today—millions of gallons of EPA approved cellulosic ethanol to come online. In turn, these gallons materially contribute to the profitability of Edeniq’s customer plants and help achieve the goals of the federal Renewable Fuel Standard. It is a win-win all around.”
Edeniq’s President and CEO, Brian Thome, further stated, “We are encouraged by this latest EPA approval, which enables another customer plant to add significant new value to its existing corn ethanol plant through our technology. Every ethanol plant in the country has the ability to bring millions of EPA approved cellulosic ethanol gallons to market, every year, utilizing our technology. We look forward to working with our existing and future customers to secure additional EPA approvals for cellulosic ethanol. We appreciate EPA’s continued diligent work to process the registration petitions in a timely manner.”
October 10, 2017
By Growth Energy
Growth Energy announced that more than 1,000 fuel stations around the country are offering E15—a fuel with 15 percent ethanol—more than doubling the number of stations from the same time last year.
“This spectacular growth is a testament to the value E15 brings to fuel retailers and consumers,” said Emily Skor, CEO of Growth Energy. “Forward-thinking retailers have figured out that giving their customers more fuel choices is smart business and American drivers have figured out that E15 allows them to save money at the pump all while making a smarter choice for their engines and the environment.”
E15 is cleaner and cooler burning fuel that works well for cars model 2001 and newer and typically saves up to 10 cents per gallon. More and more retailers are responding to consumer demand for those fuel attributes by providing E15 as a choice at their pumps.
Leading retailers including Casey’s, Cenex, Family Express, Kum & Go, Kwik Trip, MAPCO, Minnoco, Murphy USA, Protec Fuel, QuikTrip, RaceTrac, Sheetz, and Thorntons all currently offer E15 at 1,039 locations across the U.S. Many of these are in major metropolitan areas including: Atlanta, Charlotte, Chicago, Dallas, Houston, and San Antonio.
Read the original story: Growth Energy: More Than 1,000 US Fuel Stations Now Offering E15