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Trump Orders Biofuel Boost in Bid to Temper Farm State Anger

August 23, 2019

By Jennifer A. Dlouhy and Mario Parker

President Donald Trump, seeking to tamp down political fallout in U.S. farm states essential to his re-election, has ordered federal agencies to shift course on relieving some oil refineries of requirements to use biofuel such as corn-based ethanol.

Trump and top cabinet leaders decided late Thursday they wouldn’t make changes to just-issued waivers that allow small refineries to ignore the mandates, but agreed to start boosting biofuel-blending quotas to make up for expected exemptions beginning in 2021. The outcome was described by four people familiar with the matter who asked not to be named before a formal announcement could be made.

The decision was reached after a flurry of White House meetings this week on the issue, which divides two of Trump’s top political constituencies: rural Americans and the oil industry. With the move, Trump is largely siding with farmers, ethanol producers and political leaders in Iowa that have accused the president of turning his back on the industry.

But the administration’s shift risks blowback in Pennsylvania and other battleground states, where blue-collar refinery workers have held rallies to push for relief from U.S. biofuel quotas they say are too expensive. The largest coalition of U.S. building trades unions on Thursday warned Trump that changing course on exemptions would betray the president’s “campaign promise to protect every manufacturing job.”

“President Trump is committed to ensuring our country not only continues to be the agricultural envy of the world, but also remains energy independent and secure,” White House spokesman Judd Deere said.

Iowa-based biodiesel producer Renewable Energy Group Inc. climbed as much as 4.5% on the news, and traded up 5.5% to $11.64 at 1:50 p.m. in New York. Pacific Ethanol Inc. and Green Plains Inc. briefly gained before resuming losses as the U.S.-China trade war showed signs of deepening with the latter announcing plans to levy additional tariffs on American-made goods and Trump promising to respond.

Administration officials agreed to the broad contours of a renewable fuel plan, including further moves to encourage the use of E15 gasoline containing 15% ethanol, beyond the 10% variety common across the U.S. E15 could be dispensed alongside conventional ethanol blends at filling stations, under the drafted changes.

Under the tentative plan, the Environmental Protection Agency also will give a 500-million-gallon boost to the amount of conventional renewable fuel, such as ethanol, that must be used in 2020. A separate quota for biodiesel, typically made from soybeans, would get a 250 million gallon increase.

Additionally, the administration will enhance a program meant to expand U.S. fueling infrastructure and get more ethanol into the system. The EPA will adopt an Agriculture Department assessment of the greenhouse gas emissions associated with renewable fuel, and will expand environmental credits encouraging automakers to produce “flex-fuel” vehicles that can run on high-ethanol gasoline.

The EPA has drawn intense criticism for its Aug. 9 decision to exempt 31 refineries from 2018 biofuel-blending requirements. Although federal law authorizes the waivers for small refineries facing an economic hardship, the number of those exemptions has surged during the Trump administration, and biofuel producers say they are being handed out too freely.

The backlash has been most severe in Iowa, the nation’s top producer of ethanol and the corn used in its manufacture. It is also critical for Trump’s re-election; the state twice voted for Barack Obama before voting to send Trump to the White House in 2016.

Trump’s Democratic challengers have seized on the issue, with frontrunner Joe Biden accusing the president of lying to farmers and abandoning a campaign promise to “unleash ethanol.”

However, EPA officials and oil industry leaders say the waivers haven’t harmed domestic ethanol demand and blame a glut of the product for suppressing prices. Trump’s trade war with China has exacerbated the industry’s economic challenges. As with U.S.-grown agricultural products, including soybeans, ethanol faces retaliatory tariffs in China.

Against the backdrop of tariffs, the exemptions delivered another blow to the U.S. Midwest, where guaranteed domestic ethanol demand helps provide a floor of support for corn farmers and buttresses swings in commodity prices. Ethanol refining accounts for about 40% of U.S. corn consumption.

American “agriculture has a problem if ethanol doesn’t do well,” Green Plains Inc. chief executive officer Todd Becker said in a telephone interview on Thursday. The Omaha, Nebraska-based company created a political action committee last month, and Becker told analysts in May that Green Plains plans to “engage” 2020 U.S. presidential candidates on ethanol policies.

Becker said he “can’t fault” Trump for getting tough on China, but the combination of the trade war and small refinery exemptions was causing too much pain. “You don’t fight China and then give out SREs,” Becker said. “Farmers are furious now.”

Agriculture Secretary Sonny Perdue had urged the White House to rescind some of the recently issued waivers -- at least those for refineries tied to “big” oil companies -- according to an Aug. 20 memo obtained by Bloomberg.

EPA officials successfully argued that would be illegal.

Instead, Trump directed the agency to increase biofuel quotas to make up for the exemptions, a so-called “reallocation” that will effectively boost the burden for larger refineries that are not eligible to win waivers. The EPA will start incorporating expected exemptions into annual biofuel quotas beginning with 2021.

Oil industry leaders blasted the tentative agreement on Friday, saying it would do little for U.S. farmers while hurting domestic refiners.

“Reallocation would be a major hit to fuel manufacturers in Pennsylvania and Ohio -- and refinery workers across the country -- with zero benefit to ethanol,” said Derrick Morgan, a senior vice president with the American Fuel and Petrochemical Manufacturers. “Those celebrating will ultimately be foreign biofuel producers whose biodiesel is being imported to help meet mandates.”

The EPA typically sets each year’s biofuel blending requirements by Nov. 30 of the preceding year, except for biodiesel quotas, which are set two years in advance. Under the U.S. Renewable Fuel Standard program, there’s a specific mandate for biodiesel, but the soybean-based product can also be used to satisfy an implied 15 billion gallon quota for conventional renewable fuel.

Frank Macchiarola, a vice president at the American Petroleum Institute, called the drafted plan a “rushed, arbitrary policy.”

“We hope the administration walks back from the brink of a disastrous political decision that punishes American drivers,” Macchiarola said. “Bad policy is bad politics.”

Although the tentative plan was meant to assuage biofuel allies, it’s not clear it was having the intended effect Friday, amid industry skepticism the EPA will follow through on the agreement. Iowa officials are preparing to visit Washington for a formal rollout of the policy changes.

Biodiesel industry advocates say they can produce more fuel -- and the Trump administration needs to take that into account.

“With a level playing field in biodiesel trade in 2018, domestic producers increased output by several hundred million gallons,” said National Biodiesel Board spokesman Paul Winters. “We can continue to do so -- as long as EPA stops using RFS waivers to destroy demand and put biodiesel producers out of business.”

Read the original article: Trump Orders Biofuel Boost in Bid to Temper Farm State Anger

U.S. Farmers, Lawmakers Dial Up Pressure on Trump Over Biofuel Policy

Reuters

August 21, 2019

by Humeyra Pamuk and Jarrett Renshaw

The agriculture and biofuel industries and their U.S. congressional allies ramped up pressure on the Trump administration on Wednesday over the relief he has given oil refiners from rules requiring use of biofuels.

Long-suffering American farmers, a constituency President Donald Trump is counting on in his campaign for re-election in 2020, have seen prices for crops hit hard by his trade war with China. This month, farmers also complained that a government crop report did not reflect damage from historic flooding this spring.

Farmers have been infuriated at the administration’s decision to grant waivers exempting 31 oil refineries from rules requiring them to blend corn-based ethanol into gasoline.

National and state trade groups along with their political allies delivered letters to the White House over the past 48 hours detailing the damage the waivers have caused the biofuel industry.

Democratic presidential hopefuls have used the refinery issue as a cudgel, echoing farm groups who say Trump has betrayed them by siding with Big Oil. Alarmed, the Republican president ordered his cabinet to find ways to boost biofuel demand.

The Iowa Soybean Association’s letter to the White House said the refining exemptions were forcing biodiesel producers to shut plants and lay off workers. Soybeans are a feedstock for biodiesel, so growers have been hurt.

“It’s becoming more difficult to understand why your administration is choosing to support higher profits for oil companies instead of providing some stability for farmers,” said the letter, signed by Lindsay J. Greiner, president of the state’s soybean association.

Iowa, the largest U.S. producer of corn and ethanol, is a swing state won twice by Democrat Barack Obama. The state switched to the Republican candidate in 2016, in part because Trump promised to support ethanol.

Cindy Axne, a Democrat who represents Iowa’s third district, wrote to the U.S. Environmental Protection Agency, urging its independent watchdog to investigate the small refinery waivers granted between 2016 and 2018.

“What we’re seeing with this administration is a dogged approach to allow the biggest fossil fuel players an opportunity to put more money back in the pockets of their large shareholders and take that money out of the pockets of hardworking farmers right here in Iowa,” Axne said at a news conference.

Republican Iowa Governor Kim Reynolds, a Trump political ally, along with the state’s head of agriculture, said in a letter to the EPA that rural families have borne the brunt of the trade war and are now being pinched by the refinery waivers.

“Ethanol consumption fell for the first time in 20 years, commodity markets are depressed, and many biofuel plants, including several in Iowa, have already slowed or halted production,” the letter said.

The battle between Big Oil and farmers over the U.S. biofuel policy has been a headache for Trump, who campaigned in 2016 as a champion for ethanol.

U.S. regulations require refiners to blend biofuels into the nation’s gasoline pool or buy credits to fund those refiners who can. Small refiners can get exemptions from the EPA if they prove compliance causes them hardship.

But Trump’s EPA expanded the waivers significantly, granting exemptions to refineries owned by the likes of Exxon Mobil Corp (XOM.N), Chevron Corp (CVX.N) and billionaire Carl Icahn. This saved refiners billions of dollars, but farmers complained that it has destroyed ethanol demand and forced plants to shut down or idle. Refiners maintain the waivers have not hurt overall demand for biofuels.

Biofuel producers and farmers say increasing the annual blending obligations for 2020, to be finalized in November, is the best solution, but oil refiners oppose that.

“The president will have an opportunity to make this right in the fall,” Gene Gebolys, chief executive of biodiesel producer World Energy. The company said last week it was closing plants in Mississippi, Georgia and Pennsylvania, and putting 100 workers on furlough.

“If he doesn’t, the voters will have an opportunity to make it right next fall. He’s made a promise throughout the Midwest and he’s broken the promise,” he said.

Read the original article: U.S. Farmers, Lawmakers Dial Up Pressure on Trump Over Biofuel Policy

Environmental Advocates Should Take Another Look at Biofuels

The Hill

August 14, 2019

By Sen. Chuck Grassley (R-Iowa) and former Sen. Timothy Wirth (D-Colo.)

The question of how best to address environmental challenges has increasingly become a partisan flashpoint. So, when there is a green solution on which many Republicans and Democrats see eye-to-eye, as we do, it’s worth paying attention.

It’s time to take another look at biofuels.

The economic benefits to a hard-pressed farm economy are plain as day. Renewable energy – not just biofuels, but also wind and solar – are helping farmers and the rural economy survive in a year when the weather has been unkind, to say the least.

There is a lot of talk about reducing greenhouse gas emissions, but what’s needed are practical strategies to get there. Transportation is now the single greatest source of greenhouse gas emissions in the United States, making it critical to any carbon reduction strategy. But public policy to date has put almost the entire burden of the sector’s transformation on the nation’s vehicles. Shouldn’t the fuels they burn get equal attention?

Look at the numbers: Even a rapid transition to electric vehicles will leave hundreds of millions of conventional cars and trucks on U.S. roads for the next 30 years. According to a review of the relevant studies by USDA, Ethanol reduces carbon emissions by 40 percent or more compared to gasoline. Increasing ethanol blends from the 10 percent used today by most vehicles to 15 percent, now approved by the EPA, is an important start – but we can do more.

There are also major public health benefits. Today, the octane in your gasoline is supplied by a class of toxic chemicals called aromatics, which make up roughly 25 percent of every gallon of gasoline. Breathing in these toxins from car exhaust can cause cancer. Moreover, Frederica Perera, head of the Columbia Center for Children's Environmental Health, has shown through more than a decade of research that the worst emissions from those chemicals – polycyclic aromatic hydrocarbons, or PAHs – have effects on pregnant women and small children comparable to airborne lead: low birth weight, diminished IQ and cognitive and behavioral disorders. In addition, fine particle pollution from aromatics causes thousands of premature deaths each year.

Higher ethanol blends reduce the need for aromatics in gasoline. The reason is that ethanol has higher octane than gasoline and improves engine performance – with lower emissions. NASCAR vehicles run on 15 percent ethanol. Those blends should become standard nationwide.

We should also give more attention to the potential of higher blends of ethanol for engine performance. With wider availability, automakers could tune their engines to perform even better than they do today. Research at Oak Ridge National Laboratory has shown that mid-level blends of 25-40 percent, despite the lower energy content of ethanol, can match the vehicle fuel efficiency of cars running on today’s blends. Indeed, a multiyear study by the Department of Energy points to such blends as the best way to optimize vehicle and fuel performance. Blends of 30 percent are being used by the city fleet in Watertown, S.D,, with great success, and Nebraska is testing them in its state fleet. In Brazil today, every vehicle on the road (along with motorcycles and off-road equipment like boats) runs on a minimum of 27 percent ethanol.

It’s still true today that America’s national, energy and economic security is tied to our economic and consumer dependence on oil imported from volatile regions of the world. Using our farm commodities and agricultural by-products – such as corn, soybeans, switchgrass and livestock waste – and capturing natural resources – such as wind – to produce homegrown renewable energy is a winning solution to address the nation’s energy and climate challenges. Despite relentless misinformation campaigns by the oil industry and its allies, ethanol should again be seen and valued for what it is – a cleaner, healthier renewable fuel produced in the USA.

Read the original article: Environmental Advocates Should Take Another Look at Biofuels

Farmers Stung by EPA's Waivers

Post Bulletin

August 18, 2019

By Noah Fish

Producers of corn and ethanol say the Trump administration has bailed out refineries owned by large oil companies at their expense.

The Environmental Protection Agency granted biofuel waivers to 31 refineries on Aug. 9, displeasing the corn and ethanol industry.

Refineries are eligible for exemptions if they can prove they are in financial strife. The waivers free them from their obligation under the Renewable Fuel Standard (RFS) to blend biofuels into their gasoline or buy credits from others that do.

In 2017, the EPA granted 35 of 37 applications it received. Both Chevron and Exxon, two of the world’s most profitable energy companies, have been granted waivers by the EPA.

Randy Doyal, CEO of Al-Corn Clean Fuel in Claremont, said he was surprised with the number of waivers. He said the decision takes away "a big chunk of demand" in a market that's already oversupplied.

"It will depress the price of ethanol, and when you add the volatility of the corn market, it keeps pushing us in the wrong direction," said Doyal. "It's causing some definite tightness in the ethanol industry."

That could cause more plants to scale back or be put up for sale, he said, but Al-Corn is not one of them.

Doyal said he wasn't shocked by the number of applications that came in for waivers last year, because the EPA has developed a pattern of granting them. What he is startled by is the EPA not meeting its legal obligation to reallocate the lost ethanol gallons.

Despite an order from the U.S. Court of Appeals, the EPA has said it will not reinstate the 500 million gallons withheld by the agency in 2016.

If the EPA is going to waive the lost gallons, it should be properly accounted for, said Doyal.

"So they've basically thumbed their noses and said no," said Doyal of the EPA. "That's incredible to me, from an administration that says it's on the side of the farmers and is looking out for them."

A decision on the waivers was delayed for months, which made Doyal think something was being worked out between the Department of Agriculture and the EPA to reassign lost gallons.

"And then we get nothing," he said.

The difference of reassigning the gallons compared to waiving them is crucial for the health of the market, said Doyal.

"I'm scratching my head wondering where the heck the EPA thinks they're going with this," said Doyal. "And it's rather concerning because they seem to have the support of this administration."

According to National Corn Growers Association, the Trump administration has undermined the Renewable Fuel Standard, granted more than 50 waivers to big oil companies and lost the industry more than 2 billion ethanol-equivalent gallons of fuel.

The hit to ethanol demand will affect famers growing corn in the Midwest, who sell most of their corn to ethanol plants. This comes at a time when farmers are also dealing with the loss of export markets due to ongoing trade disputes.

"Actions by the EPA are now also costing corn farmers ethanol markets at home," said Brian Thalmann, president of the Minnesota Corn Growers Association. "The billions of biofuel gallons lost through the issuing of waivers to oil refineries only benefit big oil companies while lowering the value of our nation’s corn crop."

Read the original article: Farmers Stung by EPA's Waivers

EgyptAir Flies Newest Dreamliner Home Using Biofuel, Sets Distance Record

Airline Geeks

July 26, 2019

EgyptAir took delivery of its latest Boeing 787-9 Dreamliner earlier this week, the fifth of six next-generation Boeing aircraft destined for its fleet. While EgyptAir has been taking deliveries since the beginning of 2019, this delivery flight had a twist in that it was fueled with sustainable aviation flew, making it the longest flight flown with sustainable aviation fuel (SAF) as it flew from Everett, Wash. to Cairo

The delivery flight inaugurated a new program implemented by Boeing to give the option of using the SAF on any delivery flight. EgyptAir chose to perform the longer than 13-hour flight home on the biofuel to demonstrate the airline’s desire for efficiency and sustainability, of which the Dreamliner is emblematic.

The Egyptian flag carrier operates a modest long-haul fleet consisting of Boeing 777 family and Airbus A330 family aircraft with the Dreamliner being the newest type to be inducted into the fleet. From its base in Cairo, the fuel-efficient Dreamliner is currently deployed on long-haul routes over 10 hours including Washington and Tokyo, some of the longest routes in the airline’s fleet.

Long-haul isn’t the only sector of which EgyptAir is looking to modernize and become more efficient as the airline’s regional brand, EgyptAir Express, prepares to take delivery of its first Airbus A220-300. The similarly economical aircraft will also serve EgyptAir’s goal of achieving efficiency and sustainability.

During the delivery festivities, Captain Ahmed Adel, chairman and CEO of EgyptAir Holding Company spoke to the crowd, “We are committed to the sustainable growth of our airline and supporting commercial aviation’s efforts to protect the environment. The 787-9 Dreamliner is a great fit for our network and provides our customers with a responsible choice for air travel”

While the Dreamliner program was designed for exceptional fuel efficiency, the added bonus of the SAF is not only in the burning performance but in weight as well. Jets like the Dreamliner typically run on Jet-A fuel, which weighs 6.8 pounds per gallon whereas SAF weighs less at just 6.6 pounds.

Though only .2 pounds, the savings is when a 787-8 Dreamliner’s fuel capacity is 33,340 gallons. The fuel composition is 30 percent sustainable aviation fuel plus 70 percent Jet-A, meaning that 10,002 gallons of the total amount is lighter than a normal fill-up. The carbon dioxide emission should also be reduced by around 80 percent during the lifecycle of the airplane when using SAF.

EgyptAir leases its Dreamliner fleet from Irish leasing company Aercap, Boeing’s largest 787 customer with 114 owned, managed and on order.

“We are delighted to support EGYPTAIR’s fleet renewal strategy and to be a part of this important industry-first milestone,” Aengus Kelly, CEO of Aercap, said. “The 787 is a perfect choice for EGYPTAIR, allowing the airline to reduce fuel use and emissions by up to 25 percent while meeting its sustainable growth ambitions, as well as supporting Aercap’s target to transition its fleet to over two-thirds new technology aircraft by 2021.”

The biofuel used to power this EgyptAir 787’s journey home from Everett was created down the coast in a facility in Paramount, Calif. by World Energy. The plant is able to make the renewable fuel in quantities necessary for the airline industry. This particular sustainable fuel is made from agricultural waste mixed with the currently used Jet-A and is used interchangeably as a regular fuel without the need to change any engine systems.

“Boeing and the industry believe sustainable fuel has significant long-term potential to help commercial aviation earn its license to keep growing and meet our climate goals,” said Sheila Remes, vice president of strategy at Boeing Commercial Airplanes.

The use of SAF is not a new concept as commercial passenger flights began using it as early as 2011. Since that time, the fuels have become more refined and are able to be produced at levels to meet the needs of increasing air travel. The use of the fuel on such a long flight on an already fuel-efficient aircraft is a big step in attaining environmental goals, reducing carbon footprints and making air travel sustainable for the future.

Read the original article: EgyptAir Flies Newest Dreamliner Home Using Biofuel, Sets Distance Record

Brazil Considers Dropping Barriers to U.S. Ethanol

Indiana Business Journal

August 5, 2019

As China turns its back on American ethanol in a lingering trade spat, Brazil is considering opening its doors to U.S. biofuel.

Brazilian authorities are debating whether to yield to Washington, D.C.’s request to lift ethanol-import duties as a way of facilitating talks for a bilateral trade deal with the U.S., two people with direct knowledge of the matter said. A broad trade accord would benefit many Brazilian products and may be announced by October.

Officials in Brazil’s Economy Ministry are willing to remove ethanol barriers while those from the more protectionist Agriculture Ministry are pushing to renew the current import quotas with zero tariffs, the people said, asking not to be identified because talks are private.

Two years ago, Brazil slapped a 20% tariff on U.S. ethanol shipments that exceed an annual quota of 600 million liters (158 million gallons) after American corn-ethanol imports surged, flooding the Brazilian market and pushing down prices.

A biofuel deal between the two nations would come as a relief for the U.S. ethanol industry, which has been beset by a supply glut and the weakest margins in more than 15 years. American producers had expanded rapidly to cater to fast-growing Chinese demand, only to be left without buyers amid President Donald Trump’s trade war with Beijing.

Indiana has the fifth-largest production capacity for fuel ethanol among states, according to 2018 numbers from the U.S. Energy Information Administration.

A decision would have to be made by the end of this month, when the quota expires and a 20% duty on all imports would go back into effect, the people said. Brazil’s sugar-cane industry group Unica and the Economy and Agriculture ministries didn’t immediately respond to requests for comment.

The administration of President Jair Bolsonaro would at least exclude some American ethanol shipments from the 20% tax in order to preserve relations given Brazil is striving to address other U.S. trade complaints, according to the people. In March, Brazil agreed to open a wheat import quota of 750,000 tons a year free of duty, a move U.S. Wheat Associates says could benefit American farmers.

In a worst-case scenario, the Economy Ministry would extend the 600 million-liter quota to gain more time to negotiate, the people said.

Brazil was the top destination for U.S. corn-ethanol shipments last year, with imports of more than 1.7 billion liters.

Read the original article: Brazil Considers Dropping Barriers to U.S. Ethanol

EPA's Waivers Undermine The RFS, Corn Market

By Rep. Collin Peterson

Aug 12, 2019

DETROIT LAKES, Minn. – Following an announcement Friday evening from the Environmental Protection Agency (EPA) of the granting of 31 small refinery exemption waivers under the Renewable Fuel Standard, Congressman Collin C. Peterson issued a statement pointing to the capacity of the waivers to significantly undermine the RFS at a time when farmers need the certainty it creates.

“The Administration tried to bury bad news for rural America by quietly approving 31 more waivers this Friday afternoon that undermine the Renewable Fuel Standard (RFS) and the market for corn. On Wednesday, I hosted a packed forum at Farmfest with Secretary Perdue where farmers raised this issue again and again. Farmers are on the front lines of the tariff war and this announcement by the EPA will only make things worse.”

As a co-Chair of the Congressional Biofuels Caucus, Congressman Peterson has worked to stop the EPA from approving waivers to the RFS that have hurt ethanol producers and the farm economy. Congressman Peterson, Rep. Dusty Johnson (R-SD) and the co-chairs of the Congressional Biofuels Caucus introduced H.R. 3006, the Renewable Fuel Standard Integrity Act of 2019, which would stop the EPA from recklessly granting waivers to oil refineries and undermining the market for ethanol.

Finnair Flies First Biofuel-Powered Flight From San Francisco To Helsinki

Biofuels International

Aug 6, 2019

Finnish airline Finnair has flown the first biofuel flight supported by its ‘Push for Change’ carbon reducing initiative.

On 5 August, a Finnair flight departing from San Francisco Airport to Helsinki in Finland was fuelled with a 12% biofuel blend. Another flight will depart on 7 August, with the total carbon dioxide emission from the two flights reduced by around 32 tons.

“The launch of our Push for Change initiative was an important step for Finnair in order to provide our customers with the opportunity to conveniently offset or decrease the emissions from their travel,” said Arja Suominen, senior vice-president of communications and corporate responsibility at Finnair. “We have been pleased with the early phases of the initiative so far and we are now excited to move forward and fly our two first biofuel flights supported entirely by the Push for Change contributions. We naturally hope that customers will be increasingly willing and interested in using the service in the future as well.”

The airline is working with partners SkyNRG and World Energy in San Francisco, while Shell Aviation provided logistics and supply chain support for the project. The biofuel is produced from used cooking oil in California.

Read the original story here : Finnair Flies First Biofuel-Powered Flight From San Francisco To Helsinki

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Performance Matters

Ethanol Producer Magazine

August 1, 2019

By Evan Almberg

Many ethanol plants are up to 15 years old, or older, and the subject of increasing production, efficiency and profitability is more prevalent than ever. With new, more efficient technologies coming to market for various processes within a biorefinery, the desire to debottleneck older equipment can drive maintenance and capital project decisions.

Producers must decide if they want to budget and plan to maintain, upgrade or scrap and replace with a new unit. When it comes to boilers and heat recovery steam generators (HRSGs), maintenance cost and upgrade opportunities often dictate the conversation.

Tools for Making Data-Driven Decisions
Fully assessing the operation of a boiler or HRSG requires accounting for multiple factors including how a process change will affect related equipment, not just the direct system involved. Process operators and plant engineers can utilize the distributed control system (DCS) to perform on-the-fly performance checks confidently. Combining this with information located in the original equipment manufacturer (OEM) predicted performance data sheets, producers can estimate as-is performance while operating. Additionally, the data historian system provides the ability to trend data over time, providing long-term review capabilities of the boiler.

Where Modeling and Data are Key
While a control room data assessment can give a brief insight of as-is performance, it doesn’t tell the whole story. Boilers are often run differently than originally designed, making a direct comparison to the OEM predicted performance difficult. Additionally, a process change—such as dryer throughput or feedwater temperature—can greatly affect multiple aspects of the system that are not as easily quantified.

A thermal model can provide more accurate insight into the boiler performance and help fully assess the system. Modeling provides a digital representation of the boiler system, taking into consideration the physical geometries of the water and gas-side flow paths, along with OEM predicted performance values used to validate the model.

Taking it one step further, DCS and process information (PI) historian data can be reviewed and matched to the thermal model to provide an as-is representation of operation, ideal for plants that have been operating for multiple years or have changed components. Accurate data is important, so performing mass and energy balances about various sections of the boiler is needed to identify good and bad data, which leads to investigating and correcting miscalibrated instruments or DCS conversion algorithms.

Once developed, the model can be used to track degradation, identify under or overperforming sections of the boiler and simulate upgrade and process changes, as well as provide key insights into pressures, temperatures, flows and how they affect ancillary equipment.

Case Study: Process Upgrade Effects
A facility comprised of two identical firetube waste heat boilers, operating in parallel and sharing a common final steam separator, was investigated for a potential upstream process upgrade being performed elsewhere in the plant. Using HRST’s PerformancePro thermal modeling software, a thermal model was developed based on the OEM thermal and mechanical data sheets. Typical process conditions gathered from the PI data historian were used to replicate the existing boiler operation, creating an as-is representation of the system performance.

The process upgrade parameters were provided by the plant, including values for increased boiler feedwater (BFW) temperature, as well as flue gas temperatures and mass flow rates. Primary areas of concern were the American Society of Mechanical Engineers boiler design pressures and temperatures, stamped boiler capacity, safety relief valve pressure set points and relieving capacity, as well as the final steam separator capacity.

Upon modeling and subsequent analysis, it was determined that multiple shortfalls existed in the system when simulated under the process upgrade conditions, including:

• Metal temperatures exceeding the ASME design temperatures for the upstream tube sheet, tube inlets and, in some cases, the bulk tube temperature.

• Steam generation exceeding the boiler rated capacity and the safety valve relieving capacity.

• Combined (boiler one and two) steam flow exceeding the final steam separator capacity.

Additionally, it was determined that the pressure drop from the boiler to the main steam header would increase on the order of 2.25 times over existing, and the increased flue gas mass flow and temperature would increase the stack temperatures by 40 to 70 degrees Fahrenheit over the current baseline.

Solutions for meeting ASME code would require a capacity and design temperature rerate, whereas the final steam separator would only require upgraded internal equipment to meet capacity requirements. To rerate for higher temperatures, a condition assessment of all tubes and welds would be required to validate the component thickness for ASME code calculations. Plant personnel said abrasive particulates in the flow eroded tube inlets, causing plugging.

While a steam capacity rerate would be advantageous, discussion with plant personnel determined that the scope required to validate all tube and pressure part thicknesses would be costly and, because of the failure history, may only indicate that a temperature rerate would not be possible.

Because of those factors and the age of the boilers, the plant opted to continue use under existing conditions for the short term. Ultimately, the decision was made to replace each of the boilers with newer, higher-capacity units specifically designed for the upgrade parameters, with results of the thermal modeling assessment used as justification.?

Key Takeaways
When it comes to making long-term decisions about boiler operation or replacement, historical operating data trends and future operating conditions can provide helpful insight and, when combined with system modeling, create a useful tool to analyze the boiler as well as ancillary equipment.

Approaches such as this can help operators and plant management make data-driven decisions when facing the choices to maintain, upgrade or replace.

Author: Evan Almberg
Analysis Engineer
HRST Inc.
952.767.8154
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read the original article: Performance Matters

New York Publishes Proposed Rule to Allow E15 Sales

Ethanol Producer Magazine

July 24, 2019

By Erin Voegele

The New York Department of Agriculture and Markets published a proposed rule July 24 to allow E15 sales within the state. The move will soon open the nation’s fourth largest gasoline market to sales of the fuel blend.

The rulemaking comes nearly a nine years after the U.S. EPA first issued a waiver allowing E15 to be used as fuel in certain vehicles and less than two months after the agency took action to allow E15 to be sold year-round. E15 can currently be used to fuel model year 2001 and newer vehicles.

The rulemaking marks the second effort New York has made to allow sales of E15. A proposed rule issued by the New York Department of Agriculture and Markets in August 2016 was withdrawn the following month. In a notice posted to the New York State Register Sept. 21, 2016, the department said the proposed rule was withdrawn because “several objections were received to the express terms of the proposed rule.”

The new proposed rule published by the New York Department of Agriculture and Markets aims to update the state’s fuel regulations to allow the sale of E15. A 60-day public comment period on the proposal opened July 24.

Chris Bliley, vice president of regulatory affairs at Growth Energy, has expressed confidence that the rulemaking could be finalized by the end of the year.

According to Bliley, Growth Energy has been engaged in the process to open the New York market to E15 for the past five years, working with government agencies, local consultants and New York-based ethanol producer Western New York Energy.

“We’ve had lots of good discussions with the New York Department of Agriculture and Markets,” Bliley said, noting the department held stakeholder meetings earlier this year that Growth Energy participated in. The trade group has also had discussions with other state agencies that had questions and wanted to better understand ethanol and E15, he said.

“It’s been a really long effort, but we are certainly pleased to see [the state] move forward with the proposed rulemaking, and now look forward to its adoption,” Bliley continued.

Bliley said the proposed rulemaking sends a strong signal to New York fuel retailers that they will soon be able to sell E15. The state represents the nation’s fourth largest gasoline market, with annual consumption of approximately 5.7 billion gallons of gasoline, he said. For E10, that volume of gasoline consumption translates into approximately 570 million gallons of ethanol demand. Bliley said that if the whole state moved to E15, that would represent demand for about another 285 million gallons of ethanol, roughly equivalent to 100 million bushels of additional corn.

While other states in the Northeast don’t have the same outright restrictions on E15 that New York does, New York’s action to allow E15 sales could help increase demand for the fuel within the region. “What we’ve certain in other states and locations is that once you have one or two marketers installing the fuel, it certainly puts competitive pressure on others in the area to start offering it as well,” Bliley said.

Moving forward, Bliley said Growth Energy will be filing comments in support of the proposed rule. “I know others will be weighing in with strong support as well,” he said, stressing that New York’s action to allow the fuel is exciting for Growth Energy.

A full copy of the proposed rule is available on New York State Register website.

Read the original article: New York Publishes Proposed Rule to Allow E15 Sales

Year-Round E15 Highlighted in MN Biofuels’ Mid-Year Report

Ethanol Producer Magazine

July 25, 2019

By Matt Thompson

The Minnesota Bio-Fuels Association’s (MN Biofuels) 2019 First-Half Report was released to its members July 17, and the report highlights the organization’s push to grow the use of E15 in Minnesota, and the impacts the one-pound RVP waiver for the fuel has had on the state.

In a release, Tim Rudnicki, executive director of MN Biofuels said, “This year, as of May 31, E15 sales in Minnesota have hit 29.26 million gallons and with E15 now available throughout the summer, we have launched several promotional campaigns aimed at further increasing E15 consumption this year. Moreover, with E15 now available year-round, there will be new opportunities to increase the number of fuel retailers who offer E15 in Minnesota.” According to the report E15 is currently offered at 352 retail locations in Minnesota. Rudnicki added that Minnesota needs 660 stations offering the blend to make it drivers’ go-to fuel.

“With the RVP ban lifted, E15 can finally take off,” Rudnicki said. “But for that to happen, we have to continue to educate and engage with consumers on the benefits of using E15 and get more retailers onboard.”

And more retailers have started to jump onboard, Rudnicki said. “Since the ban was lifted, interest in E15 among independent retailers, especially those with multiple stations, have certainly increased. It was previously very difficult to convince some stations to take on a product they could only sell for 8.5 months a year,” he said.

In addition to focusing on E15 growth, the report highlights other initiatives undertaken during the first six months of the year. In terms of policy and advocacy, MN Biofuels worked with members of the state legislature and the governor’s office to expand the biofuel infrastructure partnership program. “While we made great strides in creating awareness about the need to increase the availability of E15 in Minnesota, funding for the initiative was constrained by lawmakers’ budget targets,” the report says. “Nonetheless, we will continue to work with agency heads and the governor to identify discretionary funds for this initiative.”

Rudnicki said MN Biofuels has data and evidence “that indicates a second BIP program could be one of the most cost-effective methods to boost E15 on the supply side. At the same time, organizations like MN Biofuels will continue to educate and promote E15 to consumers to boost demand. That's good for the farmer, economy, consumer and the environment,” Rudnicki said.

Looking ahead, the report says MN Biofuels plans to research proposals for a low carbon fuel standard. “Some environmental and biofuel stakeholders have already attempted to draft a model standard; however, a preliminary assessment indicates a host of questions about its effectiveness and implications for the ethanol industry in Minnesota have yet to be addressed,” the report says.

“There are a number of questions we have about proposed models and whether they actually recognize the evolving reality such as the growing number of hybrid vehicles and the role of mid-level blends of ethanol in helping to boost engine performance and cut greenhouse gas emissions in the transportation sector,” Rudnicki added.

Read the original article: Year-Round E15 Highlighted in MN Biofuels’ Mid-Year Report

Energy Department Says EPA Issued RFS Exemptions Against DOE Advice

Senator Chuck Grassley

July 23 2019

Press Release

Contrary to assertions by the EPA, the Energy Department confirmed in a letter to Senator Chuck Grassley (R-Iowa) that the EPA has issued so-called “economic hardship” exemptions under the Renewable Fuel Standard (RFS) to small refineries, often owned by billion-dollar oil companies, even when the Energy Department found that the refineries faced little or no actual “hardship.”

In a response to an April 10 letter from Grassley, Secretary of Energy Rick Perry outlined the role of the Energy Department in the issuance of these waivers and indicated EPA has on at least one occasion issued an exemption when the department recommended no exemption and has ignored recommendations to grant only partial exemptions in other cases. Perry also indicated that the department has not changed how these analyses are applied or scored from the prior administration. Full text of Perry’s letter to Grassley is available HERE.

The number of small refinery waivers issued by EPA has skyrocketed the last two years.

In his April letter, Grassley specifically sought clarity on whether the Energy Department had changed its criteria or methodology of how it makes recommendations to EPA for small refinery exemptions. He also requested information about how many instances EPA granted the exemptions without recommendation from the department.

“This confirms what we’ve suspected and has been reported by news media,” Grassley said. “President Trump delivered on E15, but EPA has been undermining the president’s commitment to Iowa, the Midwest and rural America. I hope the White House puts an end to these handouts to Big Oil that hurt American farmers.”

Grassley is a leader in the fight to maintain a strong Renewable Fuel Standard (RFS). He led efforts to put pressure on the EPA to stop issuing “hardship waivers” to large, highly profitable oil companies as well as make the waiver process more transparent and highlight the importance of the RFS to President Trump and his administration.

Read the original press release: Energy Department Says EPA Issued RFS Exemptions Against DOE Advice

Report Shows Optimism for Fuel Ethanol Use in Korea

Ethanol Producer Magazine

July 18, 2019

By Matt Thompson

A recently released report from the USDA Foreign Agricultural Services Global Agricultural Information Network says South Korea may soon revise its regulations to allow the use of ethanol-blended fuel. The report follows the 2019 Seoul Fuel Ethanol Conference, hosted by the U.S. Embassy Seoul’s Office of Agricultural Affairs, the U.S. Grains Council and the Korea Biofuels Forum.

“Despite acknowledged air quality issues in urban centers, Korea does not currently allow the use of ethanol as a transportation fuel,” the report says. “With growing public concern about air quality issue in the transportation sector, the growing use of ethanol in transportation fuel in neighboring countries, and Korea’s interest in diversifying energy sources, FAS Seoul is optimistic that Korea will soon move towards approval for some ethanol use in fuel.”

According to the report, the South Korean government recently studied the feasibility of using ethanol-blended fuels in its transport sector. The feasibility study is currently under review by the ministry of Trade, Industry and Energy “which will finalize a recommendation on whether to permit ethanol fuel blends in the near future,” the report says.

The conference, which was held at the end of April, included presentations from representatives of the U.S. Grains Council and Flint Hills Resources, as well as a panel discussion titled “The Necessity of Korea’s Fuel Ethanol Policy and Future Roadmap.” The 2019 conference was the largest since its inception four years ago.

Following the conference, a release from the U.S. Grains Council noted that South Korea imported over 56 million gallons of U.S. ethanol between September 2018 and February 2019. That ethanol is used only in the country’s beverage and industrial sectors; however, the Grains Council is also hopeful the transport sector will provide further export opportunities for U.S. ethanol.

Read FAS Seoul’s Wrap-Up Report for the 2019 Seoul Fuel Ethanol Conference here.

Read the original article: Report Shows Optimism for Fuel Ethanol Use in Korea

New University and Government Reports Set the Record Straight on Ethanol’s GHG Benefits

Renewable Fuels Association

July 19, 2019

By Ken Colombini

Two new academic studies released this week provide further evidence that grain-based ethanol is significantly reducing greenhouse gas emissions and call into question the reliability of recent “land use change” analyses based on flawed satellite imagery-based methodologies.

These studies add to a large body of existing literature that debunks falsities spread by well-funded opponents about the role ethanol plays in protecting the environment.

According to the Renewable Fuels Association, this new research will allow policymakers and regulators to focus on the fact that corn farmers and ethanol producers alike are making great strides forward in sustainability and efficiency.

“As the Environmental Protection Agency considers the GHG impacts of expanded ethanol consumption under the Renewable Fuel Standard, we urge them to strongly consider the latest science and data regarding ethanol’s tremendous carbon benefits,” said RFA President and CEO Geoff Cooper. “At the same time, we implore EPA to exercise great caution and prudence when considering the results of flawed land use change studies reliant on data from satellites that, frankly, can’t tell the difference between a pasture and a parking lot. The land use research relied upon by EPA for its Second Triennial Report to Congress was so flawed and erroneous that it simply cannot be used for regulatory decision-making, and we urge EPA not to make the same mistake as it considers future regulatory actions on the RFS.”

The first new study, conducted by the Laboratory for Applied Spatial Analysis at Southern Illinois University Edwardsville (SIUE-LASA), exposes fundamental flaws in satellite imagery-based research regarding land use change that was quoted in the EPA’s Second Triennial Report, released in 2018. SIUE-LASA’s review of the data sets and methodologies that were used in the prior research revealed some remarkable errors.

A series of papers by Tyler Lark, Holly Gibbs and Christopher Wright relied heavily on use of the U.S. Department of Agriculture’s Cropland Data Layer (CDL), which assigns land type categories using satellite imagery. Their research suggests there has been conversion of grassland and other “native” lands to cropland since the Renewable Fuel Standard was established. However, the CDL has shortcomings that render it poorly suited for this type of analysis, notably the inability to differentiate between grassland types (native prairie, Conservation Reserve Program, grass hay, grass pasture and fallow/idle grasslands), a problem USDA itself has recognized.

In one egregious example where the CDL failed, a body of water was misclassified as deciduous forest and grass pasture. Click here for the image example. This example is symptomatic of the errors associated with the CDL, underscoring why the research based on this data should not be used for regulatory decision-making.

Additionally, the research by Lark, Gibbs, and Wright (much of which was funded by the National Wildlife Federation) is prone to reflecting “false change,” in which a higher share of actual cropland is recognized in the newer, more-accurate CDL versions than in older, less-accurate versions, thus giving the appearance that cropland expanded.

For example, SIUE-LASA examined conditions in Iowa, since it is a leading producer of corn and ethanol and previous research asserted Iowa was an area with significant land use change. Using data from the USDA’s National Agricultural Statistics Service, SIUE showed that from 2008 to 2012 in Iowa there was a net increase of only 38,000 acres of cropland as opposed to 263,468 acres and 295,100 acres claimed in two satellite data-driven papers cited by the EPA in its 2018 report.

The land use research (“Critical Review of Supporting Literature on Land Use Change in the EPA’s Second Triennial Report to Congress”) was conducted for Renewable Fuels Association by Joshua Pritsolas and Dr. Randall Pearson of SIUE-LASA. In summary, the authors found “…there are major concerns regarding both the data and the methods that were used by the researchers [Lark, Gibbs, Wright], which call their findings into question.”

Click here for the full report.

The second new study, a worldwide meta-analysis funded in part by the Department of Energy and USDA, determined that corn residue (“stover”) retained on fields—which is the common practice—results in the sequestration of approximately 0.41 metric ton of carbon per hectare per year in the soil. This implies not only that the carbon intensity of corn-based ethanol is significantly below current estimates by EPA, the California Air Resources Board, and others, but also that leaving more residue on the field can have a larger carbon benefit than significant removal and conversion of the residue into ethanol.

Based on this research, properly accounting for the soil carbon sequestration benefits of corn production would reduce the existing lifecycle “carbon intensity score” of corn ethanol by some 20-25 percent, meaning most dry mill corn ethanol produced today would result in a 50-65 percent GHG savings compared to gasoline.

The soil carbon sequestration research was conducted by a team of environmental and soil scientists from the Department of Energy’s Argonne National Laboratory, the U.S. Department of Agriculture’s Agricultural Research Service, South Dakota State University and the South Dakota School of Mines and Technology. They used 409 data points from 74 stover harvest experiments conducted around the world. The paper, titled “A global meta-analysis of soil organic carbon response to corn stover removal,” was recently published in GCB Bioenergy, an international journal. Click here to read it.

Read the orginal article: New University and Government Reports Set the Record Straight on Ethanol’s GHG Benefits

IRENA: Bioenergy Employed 3.18 Million People Globally in 2018

Ethanol Producer Magazine

July 10, 2019

By Erin Voegele

The International Renewable Energy Association recently released the sixth edition of it Renewable Energy and Jobs report, announcing the renewable energy sector employed at least 11 million people last year, directly and indirectly. The solar photovoltaics, bioenergy, hydro, and wind power industries were the biggest employers.

Bioenergy, which includes liquid biofuels, solid biomass and biogas, employed approximately 3.18 million people last year, up from 3.06 million in 2017 and 2.74 million in 2016.

Approximately 2.063 million people were employed by the liquid biofuels industry in 2018, with 787,000 employed in solid biomass and 334,000 employed in biogas.

According to IRENA, worldwide biofuels employment is estimated at 2 million, up 6 percent from 2017. Many of the jobs in the sector are generated in planting and harvesting of feedstock. Fuel-processing facilities tend to offer fewer jobs than feedstock supply. However, those jobs typically required higher technical skills and offer better pay.

With 832,000 jobs, Brazil has the world’s largest workforce in liquid biofuels. In the U.S., record production in 2018 drove up liquid biofuels employment to 311,000 jobs. Biofuel employment in the EU reached approximately 208,000 jobs in 2017, which is the most recent year for which data is available. Brazil, the U.S. Indonesia, Columbia and Thailand are the top five countries for employment in liquid biofuels.

Heat and electricity derived from solid biomass accounted for approximately 387,000 jobs in the EU in 2017. There were approximately 186,000 jobs attributed to solid biomass in China, with 79,000 in the U.S. and 58,000 in India.

For biogas, approximately 145,000 of the estimated 334,000 jobs were in China, with 85,000 in India, 67,000 in the EU and 7,000 in the U.S.

A full copy of the report can be downloaded from the IRENA website.

Read the original article: IRENA: Bioenergy Employed 3.18 Million People Globally in 2018

Delta’s First Carbon Neutral Flight Powered by Air BP-Supplied Biofuel

Biofuels International

July 15, 2019

US airline Delta has flown its first carbon-neutral delivery flight, using biofuels and carbon offsets, as the airline continues towards its goal of a 50% carbon emission reduction by 2050.

Delta has teamed up with biofuel supplier Air BP for the provision of biofuels for an initial 20 delivery flights from the Airbus final assembly line in Mobile, Alabama, US.

The Airbus aircraft are manufactured and refined using sustainable sources and processes, the airline added.

“Today’s carbon-neutral delivery flight is a milestone on Delta’s sustainability journey as we work to cut carbon emissions in half by 2050,” said Alison Lathrop, Delta’s managing director – global environment, sustainability and compliance. “We are excited to partner with Air BP and Airbus to power these delivery flights with biofuels and carbon offsets, and will explore opportunities to bring this level of sustainability to all delivery flights going forward.”

Delta has reduced its consumption of traditional jet fuel since 2005, resulting in an 11% decrease in emissions.

The airline was the first and only US airline to voluntarily cap carbon emissions at 2012 levels by purchasing carbon offsets ahead of the International Civil Aviation Organisation’s CORSIA implementation, which caps international emissions from aviation at 2019/2020 levels.

“Airbus is committed to being part of the solution for meeting aviation’s global CO₂ emissions reduction targets,” added Simone Rauer, head of aircraft operations for environmental affairs at Airbus. “Contributing to a lasting decrease of our industry’s carbon footprint is key to ensuring a sustainable future for aviation.”

“We are proud to help Delta achieve its sustainability goals for the maiden voyages of their new Airbus aircraft,” said Jon Platt, CEO of Air BP. “Air BP is supplying sustainable aviation fuel, produced by Neste, for 20 delivery flights, and through the BP Target Neutral program we are offsetting the residual carbon emissions of each delivery flight. This is another example of BP’s commitment to advancing the energy transition and helping our customers meet their lower carbon goals. We hope this project inspires others to follow suit.”

Read the original article: Delta’s First Carbon Neutral Flight Powered by Air BP-Supplied Biofuel

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