In the News
December 27, 2016
By Janelle Atyeo
A new company in South Dakota is looking to optimize the nutrition cattle get from dried distillers grain.
Novita Nutrition will open a $95 million processing plant east of Brookings, S.D., early next year.
The plant will use distillers grain – a byproduct created when processing corn into ethanol. It will remove indigestible oil from the grain and create a pelletized feed called NovaMeal.
Making a better quality feed from distillers grain is something that Novita Nutrition CEO and President Don Endres came up with when working in the ethanol industry. Endres founded VeraSun Energy, an ethanol producer that grew rapidly in the 2000s but quickly went bankrupt when corn prices fell and the company was left with contracts it bought high.
Endres has seen other business ventures of his be successful. While the ethanol industry didn’t work out for him, it gave Endres the idea for his next big venture.
VeraSun, like other ethanol plants, sold distillers grain to cattle producers for use in the feed mix. Endres noticed, though, that after a few years, dairy farmers stopped buying their products.
He learned that oil in the grain – unsaturated fat – was an issue for the dairy cow diet. The cows already were getting unsaturated fat from silage and other grains in their diets. The amount of fat in the distillers grain varied depending on the ethanol production process, so it was difficult for dairy nutritionists to keep tabs on how much their cows were getting.
“If you put any amount of unsaturated fat in the diet, you can really throw them off,” Enders said.
Too much can cause milk fat levels to go down, he said, and milk fat is what dairies get paid for.
Distillers grain still packs nutritious protein and fiber, and Novita Nutrition has found a way to deliver those nutrients with less fat. NovaMeal is made by removing oil from distillers grain in the same way oil is extracted from soybeans, sunflowers and canola.
“It improves the digestibility of the protein,” Endres said.
Dairy nutritionists are concerned with the amount of protein that cows get after feed passes through the rumen. The amount that’s left is known as rumen undegradable protein, or RUP. In NovaMeal, the amount of protein left for the cows to absorb in the small intestine, where they can use it most, is 63 percent – more than soybean meal or canola, according to studies done by South Dakota State University.
NovaMeal also has more digestible fiber than common distillers grain, cottonseed, canola or soybean meal. Higher nutrient values means cows are getting more out of their feed.
“They’re able to absorb more of those nutrients rather than having it go out the tail end,” Endres said.
Novita Nutrition is preparing to process distillers grain on a large scale. The site near Aurora, S.D., was busy with construction crews on a cold November morning. The plant – located just west of the former VeraSun ethanol plant, now owned by Valero Energy – has been under construction since the summer of 2015.
Come next year, the plant will employ 40 people, and another 10 will continue working at the Novita Nutrition offices in nearby Brookings. Distillers grain will come in by truck and rail from ethanol plants in South Dakota, Minnesota and northwestern Iowa.
The raw material will wait for processing in a flat storage building that’s able to hold 5,100 tons.
The plant will be capable of processing 13 rail cars’ worth of distillers grain in a day, or 1,300 tons. That will mike 1,200 tons of NovaMeal pelletized feed and 100 tons of separated oil for used in biofuel or poultry feed.
A massive round bin will store the finished pellets, up to 6,000 tons.
Endres envisions selling 5 percent to 10 percent of their product to local customers along the Interstate 29 corridor. Much of it will go to dairy markets in central California, Washington, southern Idaho, western Texas and New Mexico.
Novita recently partnered with the Omaha, Neb.-based feed supplier Gavilon to deliver NovaMeal to western states.
Dairy markets are the primary focus for Novita Nutrition for now. Dairies are very focused on nutrition and often work closely with nutritionists, Endres said, but he added that it would be a nutritious meal in any kind of cattle feeding.
“It’s a very high-quality protein and fiber,” he said.
Endres grew up around Herefords on a farm east of Watertown, S.D., the son of Jim Endres and Teresa Endres. He wanted to raise Herefords like his parents, he said, and he went to South Dakota State University in Brookings to get a degree in animal science.
His career path led him in other directions, though, and he relied more on his minors in computer science and economics.
The first companies he helped start dealt with online payment platforms and electronic equipment. He helped build up both companies and saw them through successful mergers. He entered the ethanol industry in 2001 and soon afterward started brainstorming the idea that would become NovaMeal.
Nearing the opening of the plant in Aurora, Endres already is looking forward to building a second plant soon. He said he’s open as to where to build: “Anywhere with ethanol production and a base of livestock.”
Read the original story: Pellet Made from Distillers Grain Packs Protein, Not Fat
December 20, 2016
Press Release
Edeniq, Inc., a leading cellulosic and biorefining technology company, today announced that the U.S. Environmental Protection Agency (EPA) has approved Flint Hills Resources’ registration of its 120 MGPY Shell Rock, Iowa ethanol plant for cellulosic ethanol production using Edeniq’s Pathway Technology.
Shell Rock is the second plant to receive a cellulosic ethanol registration from the EPA after deploying Edeniq’s Pathway Technology. Pacific Ethanol’s Stockton plant received its cellulosic ethanol registration in September.
“We are greatly encouraged by the EPA’s rapid approval of this second registration,” said Brian Thome, President and CEO of Edeniq. “We are excited that a growing number of our customers are generating cellulosic ethanol, transforming the ethanol industry and benefiting our country.”
“Our goal is to create as much value out of every kernel of corn as possible,” said Jeremy Bezdek, Flint Hills Resources’ vice president, Biofuels & Ingredients. “The Edeniq Pathway technology helps increase ethanol yields and corn oil recovery, and allows us to produce cellulosic ethanol. We appreciate the strong partnership Flint Hills has with Edeniq and look forward to evaluating the potential use of the Pathway technology at our other plants.”
“We would like to thank the Flint Hills team for their ongoing support as we position ourselves as the leader in the cellulosic ethanol industry,” said Cam Cast, Chief Operating Officer of Edeniq. “Our team is working diligently to move plants through commercial trials and the EPA cellulosic ethanol registration process as quickly as possible despite a growing backlog.”
Edeniq’s Pathway Technology is the lowest-cost solution for producing cellulosic ethanol from corn kernel fiber utilizing existing fermenters at corn ethanol plants. Edeniq is the leader in developing analytical methods to quantify cellulosic ethanol co-produced with conventional ethanol during fermentation, which is required for EPA registration.
About Edeniq, Inc.
Edeniq has developed leading processes for producing low-cost cellulosic sugars and cellulosic ethanol. Edeniq’s capital light and operationally efficient solutions can be easily integrated into existing biorefineries that produce ethanol, other biofuels, biochemicals, and/or bio-based products. Edeniq currently sells or licenses its technologies to biorefineries in the United States. Edeniq was founded in 2008 and is headquartered in Visalia, California with a field office in Omaha, Nebraska. More information can be found at www.edeniq.com.
Edeniq, Inc.
Lily Wachter, 559-302-1777
This email address is being protected from spambots. You need JavaScript enabled to view it.
See the original press release here.
December 14, 2016
By Erin Voegele
The U.S. ethanol industry set a new production record the week ending Dec. 9, with production reaching an average of 1.04 million barrels per day, according to information published by the U.S. Energy Information Administration.
The U.S. ethanol has repeatedly broken records for ethanol production in 2016. The previous record was set the week ending July 15, when production averaged 1.029 million barrels per day. That record was tied the week ending Aug. 12, when production again averaged 1.029 million barrels per day.
The U.S. ethanol industry has surpassed the 1 million barrel per day mark only 21 times, all since November 2015. Prior to November 2015, the ethanol production record sat at 994,000 barrels per day, which was set the week of June 19, 2015.
Additional data is available on the EIA website.
Read the original story: US Ethanol Production Sets New Weekly Record
December 19, 2016
By Senator Amy Klobuchar
Back in 2009, I had the opportunity to attend the grand opening of Ever Cat’s biodiesel plant in Isanti. The company, started by a feed-supplement supplier for farmers, uses innovative technology to create biodiesel from waste. And every year since its opening, that plant has produced approximately 3 million gallons of diesel fuel to help fuel our cars, trucks and ships. And it’s employed more than two dozen people to do it.
That’s just one example of a Minnesota biofuel company that is helping strengthen our economy while decreasing our dependence on foreign oil:
o Claremont’s Al-Corn Ethanol is moving forward with plans for a new plant capable of processing about 47 million bushels of corn per year.
o Chippewa Falls Energy in Benson, one of the first farmer-owned ethanol-producing companies in the state, celebrated 20 years of business this year.
o And Highwater Ethanol in Lamberton is doing its part to cultivate the next generation by teaching high school students how the ethanol and agriculture industries positively impact the state and country.
Across Minnesota, our 20 ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. These companies create good jobs and strengthen local economies across our rural communities.
A recent study by ABF Economics showed that the ethanol industry generated $7.37 billion in gross sales in 2015 for Minnesota businesses and $1.6 billion in income for Minnesota households. The ethanol industry also supports over 18,000 full-time jobs in Minnesota.
That’s why I’ve fought for the expansion of renewable fuels through a strong Renewable Fuel Standard — or RFS, as it is also known. The RFS requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
Last October, I held a bipartisan meeting with 13 of my Senate colleagues, as well as White House Chief of Staff and Minnesota native Denis McDonough, to push for the Environmental Protection Agency to increase that minimum volume of renewable fuels. And when the proposed rule that the EPA announced earlier this year did not meet our expectations, Republican Sen. Chuck Grassley of Iowa and I led a group of senators urging the Administration to get the program back on track.
Our efforts produced good news for corn and soybean farmers and thousands of people who work in biofuels in Minnesota. Right before Thanksgiving, the Administration released a stronger final rule for 2017. The new standard will require a record amount of biofuel — 19.28 billion gallons — to be mixed into our transportation fuel supply next year. It increases the minimum volume for conventional renewable fuel — like corn ethanol — to 15 billion gallons, hitting the congressional target for the first time. And the required volume of biomass-based diesel is 2 billion gallons. That’s twice as high as the congressional target.
The Renewable Fuel Standard has helped create American jobs, drive innovation and boost local economies across Minnesota. And a stronger RFS will build on this progress. More good jobs, stronger local economies, less dependence on foreign oil – It’s a win-win-win for Minnesota.
Democrat Amy Klobuchar represents Minnesota in the U.S. Senate.
Read the original story: Creating Jobs with Innovation
Dec 13, 2016
WASHINGTON — Recent data from the U.S. Department of Energy (DOE) shows that gasoline consumed in 25 states and the District of Columbia contained more than 10.0 percent ethanol on average in 2015, demonstrating that the so-called “E10 Blend Wall” continues to crumble. The national average ethanol blend rate was 9.91 percent according to the DOE data. According to the Renewable Fuels Association (RFA), the data completely undermine legislation proposed by Reps. Bill Flores (R-Texas) and Peter Welch (D-Vt.) that suggests the gasoline market cannot withstand more than 9.7 percent ethanol content.
The data show that ethanol comprised 12.5 percent of the gasoline pool in Minnesota in 2015. Not coincidentally, ethanol flex fuels like E85 are available at roughly one out of every eight stations in the Gopher State. In Iowa, gasoline contained an average of 11.5 percent ethanol in 2015, up from 10.3 percent in 2014 and just 9.5 percent in 2013. The 2015 data is the latest available and was just published by DOE’s Energy Information Administration.
Ethanol also exceeded 10.0 percent of gasoline consumption in 2015 in coastal states like California, Oregon, New Jersey, Massachusetts, Connecticut, and even Louisiana. For the first time ever, not a single state had average ethanol content below 9.0 percent in 2015, the data show. Vermont ranked last in average ethanol concentration at 9.18 percent.
In 2014, the national average ethanol content was 9.83 percent and 22 states (plus the District of Columbia) were above 10.0 percent on average.
RFA President and CEO Bob Dinneen said the DOE data underscore that the Renewable Fuel Standard (RFS) is working as intended to drive increased use of ethanol and other biofuels. “As E15 and ethanol flex fuels like E85 have gained in popularity in recent years, the so-called blend wall has been reduced to a pile of rubble,” Dinneen said. “This data clearly shows that the RFS is delivering on its promise to expand consumer access to lower-cost, cleaner fuel options at the pump. And with EPA putting the RFS back on track in 2017, the share of renewables in our nation’s motor fuel will only continue to grow.”
Read the original story here: DOE Data: Half of United States Broke Through So-Called "Blend Wall" In 2015
Dec 9, 2016
By Anna Simet
A United Kingdom company has successfully converted a Minnesota ethanol plant into an n-butanol production facility, which is now online after two years of development.
David Anderson of Green Biologics Inc., the U.S. subsidiary of U.K.-based Green Biologics Ltd., said the plant has already made its first customer shipment and facility operations are going well so far. “We have a nice pipeline of customers lined up, and it’s pretty exciting times,” he said. “We’re going to ramp up production, and that will take from anywhere from 12 to 18 months, before it’s running at full capacity. But we’re meeting orders right now, which is always a nice thing.”
The first order was shipped out via bulk tank truck and in drums to a customer in the U.S., he said, but added that the company is working on capabilities to enable shipping to European customers as well.
The plant marks Green Biologics’s first commercial facility in the U.S., adding to its existing portfolio that includes a one-thirtieth-scale demonstration plant in Emmetsburg, Iowa, and a pilot plant in Gahanna, Ohio. Green Biologics acquired the Little Falls ethanol plant in December 2014 and renamed it Central MN Renewables LLC, taking advantage of the existing grain handling and storage facilities, fermentation assets, water treatment capabilities, and feedstock supply chain—corn—already in place. On top of that, most of the existing staff was kept in place, employees familiar with the facility, new technology and, Minnesota winters, during which Anderson said he doesn’t foresee any operational challenges. “The good news is this plant already existed as a fully functional ethanol plant, they’re [plant staff] a hearty bunch up there,” he said. “It’s the same crew, we didn’t change out a whole lot, and we have even added some head count there.”
Area growers and the state supported the project, including the Minnesota Department of Employment and Economic Development, and the Minnesota Department of Agriculture, which awarded the project $500,000 in state Next-Gen funding last year.
On future development, Anderson said the company is always looking for additional assets, but it’s possible the Little Falls site could be expanded, and fairly easily. “Rather than doing another retrofit project at a different location, we can weigh the options to determine whether it’s more effective to expand the existing asset,” he said. “The whole concept of our fermentation process says that the fermenter can produce more product than we can currently distill, so to add more capacity, it really just means add some more distillation columns to the end of the process, and it’ll give us more yield.”
Green Biologics’ advanced fermentation process can convert a wide range of feedstocks into green chemicals such as n-butanol, acetone and, through chemical synthesis, derivatives of butanol and acetone. For now, and for the foreseeable future, Anderson said, Green Biologics will focus on specialty markets. “We’ve been watching how the markets are developing—the larger, more commodity-type end-uses for n-butanol, and we decided to change our strategy and become less focused on that, and more focused on specialty applications where, under our own brand name, we put products in small bottles in retail stores,” he said.
Anderson said that to date, Green Biologics has avoided the transportation fuel market. “Once oil gets back up to a reasonable number, $100 per barrel, we might look at it again, but right now, we don’t see potential in trying to slug it out. The battlefield of renewable chemicals is littered with companies, but making a run for it.”
Read the original story here : Minnesota n-Butanol Plant Comes Online
December 7, 2016
By Representative Tim Walz
Following a bipartisan letter my colleagues and I sent on July 13 to the Environmental Protection Agency (EPA), the Obama Administration made a momentous decision affecting both US energy policy and the rural economy. On Nov. 23, the EPA released its 2017 volume obligations for transportation fuels under the Renewable Fuel Standard (RFS), and to the relief of rural America, the RFS is back on track.
After calling on the administration to aggressively expand the production of renewable fuels to levels consistent with congressional intent, the EPA reversed its initial proposal to cut RFS volumes and instead increased the 2017 target for ethanol by 200 million gallons, bringing it in line with the 15 billion gallon per year target in the RFS law. The final rule also increased the target for advanced biofuels by 280 million gallons.
I would argue that this decision, while not as high-profile as the Paris Climate Accord, is more consequential to Minnesota’s First District.
The RFS, first introduced in 2005 and expanded in 2007, is the most significant program ever established by Congress aimed at invigorating rural economies, achieving energy independence and tackling the threat of climate change.
For climate change and greenhouse gas (GHG) emissions, the equation is fairly simple: renewable transportation fuels emit less carbon than gas. Thus, at a time when the administration is clamping down on emissions and placing regulatory burdens on power plants to reign in carbon, it only made sense for the EPA to drop its misguided proposal in favor of increased renewable fuel volume obligations. The emission reductions that will result constitute another step in the right direction towards tackling the threat of climate change.
Similarly consequential is the significant economic impact of the RFS. The RFS has helped employers create thousands of jobs and jumpstarted local economies throughout the country. In the ethanol industry alone, the RFS has contributed to nearly 400,000 American jobs, bringing in more than $44 billion in economic activity. Today there are at least 211 ethanol bio-refineries across the country and new biofuel production facilities are in the works that will create even more jobs. The final 2017 RFS volumes will undoubtedly protect and expand this economic engine by spurring even more ethanol production.
Finally, the economic benefits of the RFS are significant, but equally as significant is the achievement of these benefits while at the same time lessening our dependence on foreign oil. Instead of sending our hard earned dollars out of the country to buy fossil fuels, we are drawing in investments from countries across the globe interested in supporting a renewable economic success story. In fact, since the creation of the RFS in 2005, America’s dependence on foreign oil has dropped by 45 percent. The administration’s newly minted rule will help Minnesota’s ethanol producers continue to advance American energy security.
The EPA’s final rule fosters the RFS’ three distinct and important benefits: rural economic invigoration, energy independence and reduction of GHGs. I support the Administration’s November 23 decision and, as I have persistently done so in the past, I will continue to fight for a robust RFS that maintains congressional intent to promote these benefits.
Read the original story: Reinvigorating Renewable Energy in Southern Minnesota
December 7, 2016
By Chris Lusvardi
DECATUR — Ethanol producers including Archer Daniels Midland Co. are hoping to find ways to increase usage of the product domestically and abroad.
Ethanol can continue to remain competitive, primarily because of its price advantage and benefits to air quality, Craig Willis, president of the ethanol business in ADM's corn processing business unit.
Willis spoke Tuesday during an agribusiness update seminar sponsored by Sikich held at the Decatur Conference Center & Hotel.
Having more retailers offer blends of E15 fuel is an important step, Willis said.
“We've worked several years to start the ball rolling downhill,” Willis said. “It's a domino effect as more E15 goes into the market. It affects everybody up and down the chain.”
Willis said 10 chains currently offer E15 at gas pumps in about 4,800 locations nationwide.
Exports continue to be significant as ethanol competes with other products around the world, he said.
Although gasoline prices have recently dropped and remained lower than a few years ago, Willis said it has led to more driving.
“Any growth in gas demand is more demand for ethanol,” Willis said.
The status of the ethanol industry was one of the updates related to agribusiness provided during the seminar.
The Midwest Inland Port continues to be the primary focus of local economic development efforts, said Ryan McCrady, Economic Development Corporation of Decatur and Macon County president. Marketing efforts are under way to make Decatur an attractive place for businesses to grow, he said.
The ADM intermodal ramp is at the center of those efforts, with users coming from surrounding areas including Springfield, Centralia and Peoria, McCrady said. That can lead to more job creation in Decatur as the ramp gets more use, he said.
“The benefit is it brings the costs down for everybody,” McCrady said. “Regional collaboration is the wave of the future.”
A portion of Decatur's work force, about 10,400 workers, is driving in from other counties, McCrady said.
Work force availability and quality, transportation networks and quality of life are all factors for decision makers looking to attract and retain employees, each of which McCrady said Decatur can provide.
The Midwest Inland Port and ethanol are among the big ideas and opportunities available in agriculture, said Tom Bayer, Sikich's partner in charge of agribusiness services. Bayer discussed various opportunities for tax credits, including for farmers, that can help businesses reach desired profit numbers.
“The business of farming has gotten more complicated,” Bayer said. “A lot of risk is out there.”
Commodity prices have made margins thinner, which Bayer said means farmers need to look at all opportunities.
Read the original story: Ethanol Industry Offers Agribusiness Potential
More...
December 5, 2016
U.S. Sen. Al Franken (D-Minn.) issued the following statement after the Environmental Protection Agency (EPA) finalized a strong 2017 Renewable Fuel Standard (RFS), which dictates how much biofuel is blended into our nation's fuel supply.
Six months ago, the EPA proposed 2017 renewable fuel volume requirements that Sen. Franken said weren't good enough. Since then, he's pressed the Obama Administration to make the RFS stronger, and today, the EPA acted by improving future biofuel targets for ethanol, biodiesel, and advanced biofuels.
"The Renewable Fuel Standard creates good jobs, promotes homegrown energy, and decreases our reliance on foreign oil," said Franken, a member of the Senate Energy Committee. "So that's why earlier this year, when the EPA proposed inadequate RFS targets for 2017, I immediately fought back. I'm very pleased to see that the Obama Administration listened and that we're going to see stronger requirements for ethanol, biodiesel, and advanced biofuels. This is big news for farmers, rural businesses, and communities across Minnesota."
The RFS was created around a decade ago as a method to expand our energy portfolio by requiring that the nation's fuel supply is blended with renewable fuels like ethanol and biodiesel.
Read the original story: Franken Successfully Helps Fight to Improve RFS
December 4, 2016
By AJ Taylor
At the Homeland Security and Governmental Affairs’ Subcommittee on Regulatory Affairs and Federal Management hearing entitled “Examining Two GAO Reports Regarding the Renewable Fuel Standard,” U.S. Senator Joni Ernst (R-IA) stressed the importance of maintaining a strong Renewable Fuel Standard (RFS) to continue to grow the rural economy in Iowa, and bring consumer choice at gas pumps across the country.
As Senator Ernst noted, the RFS “really has spurred investment in domestic energy production, it’s helped grow our economy throughout the Midwest, especially in those rural areas, and it’s brought a lot of competition–needed competition—to the gas pump, and saves American consumers money and reduces reliance on foreign oil sources.”
Ernst pointed to a GAO report which illustrated that bolt-on cellulosic technology at existing plants is the most cost-effective means for generating advanced biofuels.
Specifically, the Iowa Senator highlighted a stop on her 99 county tour in Galva, Iowa, in which she explained the facility is “using corn fiber, which is a by-product of the ethanol process to create cellulosic ethanol. This is a great example of what this was originally intended to do; it was to support the expansion of conventional biofuels, as a springboard for those advanced biofuels.”
The Iowa Senator also cited her concerns over premature criticism of the RFS, “If we create further uncertainty about the future of the RFS and our commitment to biofuels, it will only serve to slow our research and investment down towards attaining those goals originally set by Congress.”
Senator Ernst’s remarks today follow her comments over the Environmental Protection Agency’s (EPA) recent release of their final RFS renewable volume obligations (RVO) for 2017 at the Congressionally-approved level of 15 billion gallons of conventional biofuel.
Read the original story: Ernst Stresses Importance of Strong RFS for Rural Economies at Hearing
December 2, 2016
By Ted Reed
United Airlines (UAL) , which uses about 4 billion gallons of fuel annually -- making it one of the world's biggest fuel consumers -- also has become the airline industry's leader in seeking to reduce global carbon emissions.
United said it accounts for about 60% of the global aviation industry's commitment to biofuels. It expects to purchase about 900 million gallons of biofuel or 90 million gallons a year for the next 10 years.
According to United figures, Cathay Pacific is second, committed to 413 million gallons of biofuel use, while JetBlue is committed to 109 million gallons, Lufthansa is committed to 42 million gallons and other airlines collectively are committed to about 70 million gallons.
In March, in a demonstration of its commitment, United became the first U.S. airline to use a high percentage of biofuel (about 30%) to power a regularly scheduled flight, which operated between Los Angeles and San Francisco for two weeks.
On Friday, sustainability officers from United, JetBlue and Alaska will discuss their efforts during the final day of a Fort Lauderdale, Fla. conference presented by Jersey City, N.J.-based Companies Vs. Climate Change, which seeks to provide a forum for businesses to discuss climate change solutions.
United is "trying to grow the biofuels industry for aviation," said Natalie Mindrum, the carrier's director of environmental responsibility. "We want to be a leader in this area."
Biofuels are sustainable fuels created from renewable sources, such as agricultural waste and even household wastes, but not, in United's case, from corn or other edible sources. "We are not competing with food sourcing," Mindrum said.
U.S. commercial aviation produces 2% of the nation's man-made greenhouse gas, while driving 5% of GDP, according to figures from Airlines for America.
Most airlines seek to reduce fuel use through the purchase of new aircraft, the installation of winglets on aircraft, and fuel conservation programs such as single-engine taxi, careful calibration of how much fuel to carry and the use of electricity rather than engines when aircraft are on the ground.
But United goes a step farther in its biofuels commitment, which has played out in two efforts.
One is a partnership with AltAir Fuels, a Paramount, Calif.-based biofuel company. United signed its first agreement with Altair in 2009; fuel production begin in March 2016. "We will purchase up to 15 million gallons annually over the next three years," Mindrum said. "This is a small percentage, but we have to start somewhere."
In a continuing effort, at Los Angeles International Airport, United has spearheaded the inclusion of biofuel (a single-digit percentage) in the airport fuel supply used by all of the airport's carriers.
Fuel from AltAir is provided to the fuel farm at LAX, with the result that "every flight {which takes on fuel at LAX} has a small quantity of biofuel," she said.
The bulk of United's potential biofuel use will result from a partnership with Fulcrum BioEnergy, a Pleasanton, Calif.-based company that seeks to convert municipal waste into aviation biofuel.
In 2015, United invested $30 million in Fulcrum, the single largest investment by a U.S. airline in alternate fuel. The two companies envision joint development of up to five projects at United's hubs, expected to produce 180 million gallons of biofuel annually. The first site has yet to be selected.
Fulcrum takes household trash, converts it to gas through one process, and then converts carbon monoxide and hydrogen gases into liquid fuel. Cathay Pacific has also invested in Fulcrum.
Mindrum said the use of Altair fuel reduces carbon dioxide emissions by 60%, while the use of Fulcrum fuel reduces carbon dioxide emissions by 80%. "By using waste, we are not pulling fossil fuels out of the ground," she said. "We are using {materials} that have already been pulled out."
U.S. airlines are all committed to reducing carbon emissions, although the extent of their current commitments vary.
Among the four largest carriers, American (AAL) -- which already has the youngest fleet of the network carriers -- takes a new airplane every week. Employees are strongly encouraged to seek out methods to reduce fuel consumption, and the carrier is "evaluating the alternative jet fuel industry and identifying the most promising companies and technologies," said spokesman Matt Miller.
Delta (DAL) has reduced fuel burn per available seat mile by 6% since 2008 and is phasing out some older aircraft, such as the Boeing 747 and 50-seat regional jets. It has a program that enables passengers to make financial contributions to offset the environmental impact of its flights.
"We're the only U.S. airline committed to carbon-neutral growth," said spokesman Trebor Banstetter. "We also nabbed the top airline spot for global companies in the 2016 Newsweek Green Rankings, ranking 85th."
Southwest (LUV) not only is modernizing its fleet and implementing fuel savings project, but also it signed a 2014 agreement with Red Rock Biofuels to purchase 3 million gallons of biofuel annually.
"This renewable fuel will be refined in Oregon from forest residues, helping to reduce the risk of destructive forest fires," the carrier said on its website. "The blended product of biofuel and jet fuel is expected to be used at Southwest's San Francisco Bay Area operations, with first delivery anticipated in 2018."
Read the original story: How United Leads the Airline Industry in Reducing Carbon Emissions
December 1, 2016
By Rachel Gantz
Today the Senate Homeland Security & Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management is holding a hearing examining two reports by the Government Accountability Office (GAO) on the Renewable Fuel Standard (RFS). The reports incorrectly suggest the RFS is falling short of its goals to support commercialization of advanced and cellulosic biofuels.
In response to the hearing and the GAO reports, Renewable Fuels Association (RFA) President and CEO Bob Dinneen issued the following statement:
“This hearing and the GAO reports really miss the point. The RFS has been a resounding success by any measure. It has created high-paying jobs across America, reduced oil imports from OPEC, lowered consumer fuel prices, slashed emissions from the transportation sector, and driven substantial investment into advanced and cellulosic biofuel technologies.
“While first-generation biofuels were already proven in 2007 when Congress expanded the RFS, legislators knew full well that the pace of commercialization for advanced and cellulosic biofuel technologies was somewhat uncertain. That’s precisely why Congress included measures allowing EPA to adjust advanced and cellulosic volume requirements. Indeed, the volumes in the 2007 bill were not a forecast, but rather an aggressive goal and bold vision to support the creation of a vibrant low-carbon advanced biofuel market.
“That bold vision is in fact being realized, and advanced biofuel production has grown dramatically under the RFS. Production and use of advanced biofuels has risen from less than 200 million gallons when the original RFS was adopted in 2005 to approximately 4 billion gallons (RINs) in 2016—a 20-fold increase. That’s a remarkable achievement that simply wouldn’t have occurred without the RFS.
“GAO also ignores a number of important factors that have impeded more rapid growth in advanced and cellulosic biofuel production. The Great Recession and financial crisis, lengthy delays by EPA in setting annual RFS volume requirements, uncertainty caused by oil industry lawsuits and repeal efforts, and OPEC manipulation of world oil markets are just a handful of unforeseen challenges that have undercut more rapid development of next generation biofuels.
“Still, even with that uncertainty and instability in the background, leading innovators like DuPont, POET/DSM, Quad County Corn Processors, East Kansas Agri-Energy, CHS, Adkins Energy, ICM, Valero and many others are showing that advanced and cellulosic biofuels are real and are poised for explosive growth in the years ahead.”
Read the original story: RFA Statement on Senate Hearing Focused on GAO RFS Reports
November 29, 2016
By Ron Kotrba
The U.S. Government Accountability Office issued two reports Nov. 28 suggesting that the renewable fuel standard (RFS) program is unlikely to meet its targets for reducing greenhouse gas (GHG) emissions and expanding the U.S. renewable fuels sector. The reports largely attribute this supposition to production of advanced biofuels falling short of statutory requirements. Advanced biofuels such as biodiesel, renewable diesel and cellulosic ethanol provide the largest GHG reductions and, per statutory requirements of the RFS, were to make up 21 billion gallons of the 36 billion gallon renewable fuel volume obligations under the program by 2022.
The biofuels industries, however, can attribute this shortfall of advanced biofuels production back to the federal government by way of the U.S. EPA, which has questionably used its general waiver authority to reduce overall renewable fuel obligations under the RFS for the past several years—the subject of a pending lawsuit—and its cellulosic waiver authority to significantly reduce the cellulosic biofuel targets in the agency’s implementation of the program vs. statutory requirements.
Biofuel industries can hardly achieve the statutory goals when EPA continues to reduce the targets set out in the statute. Year after year, biofuel industry organizations representing producers of conventional and advanced biofuels call on EPA to increase the targets to more closely resemble those laid out in the statute. For instance, the National Biodiesel Board urged EPA to boost the biomass-based diesel target for 2018 to 2.5 billion gallons, which the agency finalized at 2.1 billion. The statute mandates that advanced biofuels are to provide 9 billion ethanol-equivalent gallons (6 billion biodiesel-equivalent gallons) to market by 2017, but the EPA has reduced this target to 4.28 billion ethanol-equivalent gallons (2.85 billion biodiesel-equivalent gallons). NBB pushed EPA to boost the advanced biofuel target for 2017 to 4.75 billion ethanol-equivalent gallons (3.17 billion biodiesel-equivalent gallons), citing ample feedstock and domestic production capacity to meet the increase, but EPA was not persuaded.
The GAO initially incorrectly reported that “less than 5 percent of the 3 billion gallon advanced biofuel RFS target was produced in 2015, and additional investments for commercialization seem unlikely.” Biodiesel Magazine contacted Frank Rusco with the GAO to advise him of this error. Rusco admitted this was a mistake, as it should have read “less than 5 percent of the 3 billion gallon cellulosic biofuel RFS target was produced in 2015.” Rusco thanked Biodiesel Magazine for pointing out the inaccuracy and the statement was subsequently corrected on the GAO website. Several media outlets, however, took this initial error as fact and reported the incorrect figures.
“The advanced biofuel category requirements of the RFS have been met every year of the program in large part thanks to the growth of the biodiesel industry providing the numerous benefits Congress sought for the environment, economy, and energy security,” said Donnell Rehagen, CEO of the National Biodiesel Board. “While the cellulosic biofuel category has taken a smaller portion of the overall advanced biofuel category to date than what Congress originally envisioned, the program is still driving growth of these and other advanced biofuels into the marketplace. The advanced biofuel requirement finalized by EPA last week will be met by a variety of fuels in the marketplace, all which reduce emissions by greater than 50 percent compared to petroleum.”
In its summary report, the GAO admitted that experts advised the office of the federal government’s role in influencing the effectiveness of the RFS, and how the investment climate for advanced biofuels could be improved by reducing uncertainty about the future of the RFS program and tax credits.
One aspect of the report was particularly contentious for the biodiesel sector. “Experts said that several advanced biofuels are technologically well understood and some are being commercially produced, but they noted there is limited potential for increased production in the near term and cited several factors that will make significant increases challenging,” the report summary stated. “Given that current advanced biofuel production is far below RFS targets and those targets are increasing every year, it does not appear possible to meet statutory target volumes for advanced biofuels in the RFS under current market and regulatory conditions. Biofuels that are technologically well understood include biodiesel, renewable diesel, renewable natural gas, cellulosic ethanol, and some drop-in fuels. A few of these fuels, such as biodiesel and renewable diesel, are being produced in significant volumes, but it is unlikely that production of these fuels can expand much in the next few years because of feedstock limitations.”
John Kruse, the principal and director of quantitative analysis of World Agricultural Economic and Environmental Services, told Biodiesel Magazine, “Although the U.S. biodiesel industry has demonstrated the ability to diversify its feedstocks significantly over the past few years, the feedstock issue continues to emerge as the primary reason for limiting the expansion of volume obligations for biodiesel.”
In the narrow focus of biodiesel and renewable diesel feedstocks, Kruse said distillers corn oil (DCO) is a prime example of a new and growing source. “While many [ethanol] plants already have extraction capabilities in place, the growth is occurring through enhanced extraction yields,” Kruse said. “We see corn oil extraction yields growing nearly 45 percent over the next five years.”
Furthermore, Kruse said along with DCO, other fats and oils are used primarily as an energy source in livestock rations. “With the significant decline in feed grain prices, there is a large supply of less expensive sources of energy available for livestock feed. We expect to see some substitution away from the use of oils in livestock rations as an energy source.”
Soybean oil provides roughly 50 percent of U.S. biodiesel feedstock, and as Kruse pointed out, U.S. soybean yields have been at record levels the past four years, further increasing the supply of soybean meal and oil. “Sometimes it is forgotten that soybean oil is primarily a byproduct of soybean crush and that the soybean market has and will continue to be driven by the demand for soybean meal,” he said. “There continues to be no shortage of protein meal demand in the global marketplace with growing meat consumption and the historical underutilization of protein meal in livestock rations. Developing countries with the strongest income growth tend to demand poultry and aquaculture products, which are produced with protein-intensive rations. The strong demand for meals results in increased supply of soybean oil.” Overall, Kruse said an abundant and expanding supply of vegetable oils exists.
Biodiesel from virgin soybean oil reduces GHG emissions by more than 50 percent compared to petroleum diesel, according to EPA data, and when made from waste materials such as used cooking oil, biodiesel can achieve more than 80 percent GHG reductions.
“It is ironic how quickly it has been forgotten that prior to biofuels, the agricultural industry was focused on developing new sources of demand for its products,” Kruse said. “With brief exceptions—biofuels as the most recent example—agriculture has struggled the past century with falling real commodity prices. Falling real commodity prices results from supply outpacing demand. Yet even with record global stocks for most commodities and significantly lower commodity prices, there is a lingering perception of scarcity.”
Read the original story: GAO RFS Reports Paint Incomplete Picture of Advanced Biofuels
December 1, 2016
By Ann Bailey
Several associations sent a letter this week to Gina McCarthy, EPA administrator, expressing their unified support for keeping the Renewable Fuel Standard program’s point of obligation unchanged.
The associations, made up members of the bioenergy and energy industries, said in the letter, that while they each have unique, and often conflicting, positions regarding the broader RFS program, they are one in their opposition to move the point of origin for RFS compliance. The letter was signed by the Advanced Biofuels Association, American Petroleum Institute, Growth Energy, Association for Convenience & Fuel Retailing, NATSO, Petroleum Marketers Association of America, Renewable Fuels Association and Society of Independent Gasoline Marketers of America.
“Each of the undersigned associations strongly supports the Environmental Protection Agency’s proposed denial of petitions for a rulemaking to change the point of obligation under the RFS. There is no sound public policy rationale for moving the point of obligation and further, such a change would add complexity and uncertainty to the current RFS program,” the letter said. “We urge EPA to finalize its conclusion and deny the petitions to move the point of obligation,” said the letter representing the eight organizations.
Growth Energy CEO Energy Skor reiterated her association’s support of the current RFS point of obligation in a statement released after the letter to the EPA was sent.
“The point of obligation, as outlined under the RFS, is doing exactly what it is designed to do, incentivizing marketers to blend additional biofuels and encouraging the availability of higher-level ethanol blends to retailers who wish to sell them,’ Skor said. “The bottom line is that the current point of obligation encourages consumer choice and cost savings at the pump, and any change would undermine the continued success of the RFS and reward those parties who have refused to comply with the intent of the law.”
The Advanced Biofuels Association said in a statement it also strongly supports EPA’s recent published proposed rejection of the waiver request to move the point of obligation.
“For us it is a Trojan horse intended to undercut and punish those companies who made investments to be able to blend the mandated fuels under the Renewable Fuels Standard,” said Michael McAdams, ABFA president. “It would create more uncertainty, be harder to enforce and discourage and reduce levels of current blending. As for the group of so called “savvy” business guys, sometimes being too cute by half comes at a price. Time to make investments for the future, rather than simply try and escape your commitment to blend renewable sustainable fuels.”
Read the signed letter here.
Read the original story: Groups Letter to EPA: Don't Change RFS Program Point of Obligaton
November 30, 2016
More than 80 percent of new 2017 model year (MY) vehicles are explicitly approved by the manufacturer to use 15 percent ethanol blends (E15), according to an analysis of warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA). That is up from last year, when approximately 70 percent of MY2016 vehicles were approved by automakers for the use of E15.
For the first time, Hyundai Motor Company has approved the use of E15 in MY 2017 Hyundai and Kia vehicles, joining the majority of its auto competitors. Together, Hyundai and Kia represent slightly more than 8 percent of the U.S. light-duty automobile market.
In 2012, EPA approved the use of E15 in vehicles built in MY 2001 or later. However, auto manufacturers did not retroactively endorse the use of E15 in legacy vehicles that were already on the road.
Other key points from RFA’s analysis include:
The Detroit Three (Chrysler, General Motors and Ford), which collectively represent 45 percent of U.S. market share, all clearly allow E15 in their vehicles. GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined the following year and Chrysler began E15 approval with its MY 2016 vehicles.
Other automakers explicitly offering E15 approval for MY 2017 vehicles include Honda, Toyota, Volkswagen Group, and Tata Motors (maker of Land Rover and Jaguar). Altogether, auto manufacturers with approximately 81 percent of the U.S. market share now approve the use of E15 in their MY 2017 vehicles.
With 9 percent of the U.S. market share, Nissan Motor Corporation remains the largest vehicle manufacturer that does not explicitly approve E15 in its vehicles. Despite announcing earlier this year that it is developing a vehicle powered by an ethanol fuel cell, the automaker only approves the use of E10 in its vehicles. Curiously, Nissan approves the use of gasoline containing up to 15 percent MTBE, a toxic additive that is banned in more than two dozen states.
Mazda, Subaru and The Daimler Group (maker of Mercedes-Benz) also continue to exclude E15 from fuel approvals and warranty statements. Together, these three manufacturers own about 7.5 percent of the U.S. market share.
Of note, BMW Group’s Mini vehicles again allow the use of 25 percent ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25 percent, i.e., E10 or E25, may be used for refueling.”
While neither automaker approves the use of E15, both Mercedes-Benz and Nissan produce some flex fuel vehicle models that are capable of operating on up to 85 percent ethanol blends (E85).
RFA estimates that approximately 25–30 percent of the 230 million vehicles on the road today are clearly approved by the automaker to use E15. Meanwhile, roughly 90 percent of vehicles on the road were built in 2001 or later, meaning they are legally approved by EPA to use E15.
“This analysis demonstrates that automaker acceptance and approval of E15 continues to expand rapidly,” said RFA President and CEO Bob Dinneen. “More than four out of every five new vehicles carries the manufacturer’s explicit endorsement of E15, putting to rest the myth propagated by the American Petroleum Institute that automakers don’t allow or warranty the use of this lower-cost, higher-octane fuel blend. We applaud Hyundai for joining the ‘E15 Club’ with its model year 2017 vehicles, and we’re thrilled to see Mini going above and beyond to offer E25-compatible vehicles. At the same time, we encourage Nissan, Mazda, Subaru and Daimler to get with the times and offer their customers greater freedom and flexibility when it comes to making a fuel choice at the pump.”
E15 is sold today at nearly 400 retail stations in 28 states, including major chains such as Sheetz, Thorntons, RaceTrac, Kum & Go and Murphy USA.
The RFA analysis can be found here.
Read the original story: RFA Analysis: Automakers Approve E15 in More than 80% of New 2017 Vehicles
November 24, 2016
By Mike Hughlett
The Obama administration has mandated a record amount of biofuel use in 2017 — a victory for the ethanol industry, which counts Minnesota as one of its top producers.
The U.S. Environmental Protection Agency Wednesday finalized an annual rule that sets volume requirements for biofuel in the nation’s motor fuel supply. The agency set the total renewable fuel requirement for 2017 at 19.28 billion gallons, up 6.4 percent over 2016 and higher than the EPA’s original proposals this spring.
For 2017, the EPA is mandating the use of 15 billion gallons of conventional biofuel, which is primarily corn-based ethanol. It marks the first time the agency has mandated the 15 billion-gallon statutory maximum for conventional biofuels, which was established by Congress a decade ago.
“We were very pleased today,” said Minnesota Sen. Amy Klobuchar, a member of the Senate Committee on Agriculture who has worked with farm groups to help push for greater biofuel usage. “It’s kind of a Thanksgiving surprise.”
The EPA is required to set targets by the Renewable Fuel Standard, with annual mandates for how much ethanol and biodiesel need to be blended with gasoline and diesel.
The program, signed into law by President George W. Bush, was designed to curb greenhouse gas emissions, promote energy independence and boost rural economies.
The EPA on Wednesday also increased its usage mandates for biomass-based diesel fuel, advanced biofuel and cellulosic biofuel — all three of which are far smaller sources of biofuel than ethanol.
The Renewable Fuel Standard regularly sparks battles between the oil industry and the ethanol industry. Reactions to Wednesday’s decision were no different.
Chet Thompson, president of the American Fuel and Petrochemical Manufacturers, told Bloomberg News that the 2017 targets are “completely detached from market realities.”
The ethanol industry is a big market for corn growers, and Minnesota is the nation’s fourth largest corn growing state.
“This certainly helps,” Harold Wolle, president of the Minnesota Corn Growers Association, said of the 2017 mandate. “We have been fighting to get the renewable obligations up to the statutory limits for a number of years.”
Minnesota has about 20 ethanol plants, mostly in the state’s southern half. The state is the nation’s fourth largest ethanol producer, churning out 1.16 billion gallons of biofuel per year, according to the Minnesota Bio-Fuels Association.
Most U.S. gasoline mixed with ethanol is E10, which contains 10 percent of the biofuel.
Read the original story: New Federal Mandate a Victory for Minnesota's Ethanol Producers