ND Ethanol Plant Enters Voluntary Carbon Market

Cindy Zimmerman

North Dakota’s Red Trail Energy (RTE) on Tuesday announced issuance of its carbon dioxide (CO2) removal credits on the Puro.earth Registry, making it the first ethanol production facility to generate CO2 Removal Certificates (CORCs) in the voluntary carbon market (VCM) and the largest durable carbon removal project registered to date. RTE will be offering its CORCs through its marketing arm RPMG.

RTE worked with clean energy advisory firm EcoEngineers to successfully register its project under the Puro Standard, the world’s leading crediting platform for engineered carbon removal. The carbon dioxide removal (CDR) credits are generated through bioenergy with carbon capture and storage (BECCS) from ethanol production in compliance with Puro’s Geologically Stored Carbon Methodology. Prior to the issuance of CORCs, RTE underwent an independent verification and successfully met all requirements of feedstock sustainability, carbon sequestration permanence and financial additionality.

RTE sequesters CO2 from the fermentation process at its ethanol plant into a permitted underground Class VI well located approximately 6,500 feet directly beneath its facility. This carbon removal will be available as CORCs to help buyers complement their emission reduction activities in pursuit of net-zero targets.

Through Puro.earth and with EcoEngineers’ guidance, RTE was issued more than 150,000 CO2 Removal Certificates from the first 14 months of BECCS operation.

Red Trail Energy CEO Jodi Johnson joined Puro.earth CEO Antti Vihavainen making the announcement Tuesday, along with EcoEngineers CEO Shashi Menon and David LaGreca, Managing Director of VCM Services at EcoEngineers. Listen to the press conference below:

Red Trail voluntary carbon market 29:51

Audio, Carbon, Ethanol, Ethanol News

New Assessment Shows Soy Carbon Footprint is Lower

Cindy Zimmerman

A new Life Cycle Assessment conducted by Sustainable Solutions Corporation (SSC) for the United Soybean Board (USB) and the National Oilseed Processors Association (NOPA) finds a significant reduction in the lifecycle carbon footprint for U.S. soy.

According to the assessment, there is a 22% decrease in the carbon footprint associated with U.S. production of crude soy oil, which translates into reductions in CI across the clean fuels industry, since soybean production and oil processing constitute more than 40% of the carbon intensity (CI) score for soy biodiesel.

Clean Fuels Alliance America assisted USB and NOPA in ensuring the data collected for processors in the report aligns with data specifications for GREET, so it could be easily integrated into GREET model updates.

“We look forward to working with Argonne National Laboratory through the data quality assessment process to update the GREET model to reflect the latest improvements in the industry,” said Veronica Bradley, Environmental Scientist at Clean Fuels Alliance America.

The Life Cycle Assessment of U.S. Soybeans, Soybean Meal, and Soy Oil report can be found here.

advanced biofuels, Biodiesel, Clean Fuels Alliance, Soybeans, USB

Grains Council Joins NEC Trade Panel Discussion

Cindy Zimmerman

The U.S. Grains Council (USGC) took part in the recent National Ethanol Conference (NEC) in San Diego. A delegation of Council staff and industry representatives from Mexico and the Latin American and Europe, Middle East and Africa regions attended the conference and USGC Japan Director Tommy Hamamoto joined a panel on Working with World Partners: The International Outlook.

The panel looked at the growth and impact of international alliances and partnerships promoting the expansion of ethanol use for vehicles and other important uses in emerging economies.

“For the international market development of ethanol, it is very important to enhance communications with those customers to ensure matching our supply and their demand. The panel was an excellent opportunity to provide insights about what is happening in the global ethanol market. It was my honor to be able to give an idea about the Japan market on the panel,” Hamamoto said.

In addition to Hamamoto, the panel included Gerard Ostheimer, Clean Energy Ministerial Biofuture Campaign; Zoltan Szabo, Ethanol Europe; and Shrikant Rathi, Praj. Ed Hubbard, General Counsel and VP, Government Affairs for the Renewable Fuels Association moderated the panel which wrapped up the 2024 National Ethanol Conference.

Listen to their conversation.

NEC24 International trade panel 55:38

2024 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, Exports, National Ethanol Conference, Renewable Fuels Association, RFA, Trade, USGC

Summit Carbon Solutions Signs Valero as Shipper

Cindy Zimmerman

Summit Carbon Solutions has signed Valero, the world’s second-largest corn ethanol producer and a leader in low-carbon transportation fuels production, to be a shipper on Summit’s pipeline.

Eight of Valero’s ethanol facilities in Iowa, Nebraska, Minnesota, and South Dakota are expected to be incorporated into Summit’s project, bringing the total to 57 ethanol production facilities across the upper Midwest, from which it intends to capture and sequester over 16 million metric tons of CO2 per year.

Summit Carbon Solutions CEO Lee Blank at 2024 National Ethanol Conference

“I view our project, as representing a meaningful shift in agriculture to lower the carbon intensity of biofuel products,” said Summit Carbon Solutions CEO Lee Blank. “It’s about practical changes that can make a real difference: improving farm profitability, increasing land values, and offering solid support to our farm families and rural communities.”

Blank was on a panel at the recent National Ethanol Conference where he had a very frank discussion with Renewable Fuels Association VP for Strategy and Innovation Tad Hepner about where the pipeline project stands right now. He said that the company has “hardened (its) attitude towards accomplishing this project” in spite of all the set backs and challenges and he admits they made some mistakes at the beginning. “To be fair, I think we deserved a little criticism early…which is the reason I think the original founders of the company decided to take a more agricultural role,” said Blank. “We have made 5800 route changes to this pipe because we do recognize now how that landowner values his acre.”

Listen to some of Blank’s comments on the panel here:
NEC24 Lee Blank, Summit Carbon Solutions, panel comments 9:50

2024 National Ethanol Conference Photo Album

Audio, aviation biofuels, Carbon, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

Clean Fuels Showcases What’s New at #Classic24

Cindy Zimmerman

It was over 30 years ago that soybean farmers found a new market for their product in fuel made from soybean oil that was eventually called biodiesel, but the market for that clean fuel has expanded to include new feedstocks and opportunities.

Clean Fuels Alliance America, formally known as the National Biodiesel Board, hosted a Learning Center Session at the 2024 Commodity Classic last week in Houston to discuss the rapid growth of biodiesel, renewable diesel, and sustainable aviation fuel demand and coordinated growth of feedstocks, including new oilseed crops.

Panelists included Doug Whitehead, Clean Fuels COO; Greg Anderson, Nebraska Soybean Board and Clean Fuels Board Member; Courtney Lawrenson, AGP and Clean Fuels Board Member; Mike DeCamp, CEO, CoverCress Inc; Scott Hedderich, Director, Nuseed; and Alan Weber, Partner, M4.

Listen to their discussion here:
Classic24 Clean Fuels learning session 33:56

In an interview, CoverCress CEO Mike DeKamp said these kinds of alternative feedstocks are essential to meet the the capacity coming on line for renewable fuel production such as renewable diesel and SAF. “We need crops that can grow in between these fallow periods (that are) not in competition with corn or beans,” he said, admitting that it is going to take time to develop these crops. “At the end of the day, if we can’t give value to the grower, it’s not going to work.”

Classic24 Mike DeKamp, CoverCress 8:58

2024 Commodity Classic Photo Album

Audio, aviation biofuels, Biodiesel, Clean Fuels Alliance, feedstocks, renewable diesel, SAF, Sustainability

Biden Administration Delays GREET Model Revision

Cindy Zimmerman

Officials from the Biden administration faced over 11,000 farmers and agricultural industry representatives today at the Commodity Classic in Houston and announced that they will miss a self-imposed March 1 deadline to complete modifications to the GREET model for sustainable aviation fuels (SAF).

“We’re going to take a few more weeks – and I mean weeks, not months – to make sure that the guidance is correct, that it acknowledges the work that’s being done in reducing greenhouse gas emissions relative to transportation fuels, and the good work that’s being done out in the field to embrace climate-smart practices,” said USDA Secretary Tom Vilsack.

The model is critically important for determining eligibility for the Inflation Reduction Act’s “40B” SAF tax credit and the administration agencies involved – EPA, DOT, USDA, and DOE – had been adamant they would meet the March 1 deadline and the expectation was it would be announced by Vilsack and EPA Administrator Michael Regan at Commodity Classic.

Secretary of Agriculture Tom Vilsack remarks
Classic24 Vilsack remarks 22:48
EPA Administrator Michael Regan remarks
Classic24 Regan remarks 8:43
Sec. Vilsack and Admin. Regan press conference
Classic24 Vilsack-Regan presser 17:40

RFA CEO Geoff Cooper with Sec. Vilsack and EPA Admin. Michael Regan

“While we are pleased to hear progress is being made on the modified GREET model, we are disappointed by this additional delay,” said Renewable Fuels Association President and CEO Geoff Cooper. “Getting the modeling right could open the door for America’s farmers and ethanol producers to participate in an enormous decarbonization opportunity. But getting it wrong will strand investments and assure the failure of the Biden administration’s climate objectives.”

Cooper was able to chat briefly with Vilsack and Regan about the delay and get some more insight into the decision. “Climate smart agriculture practices seem to be the big piece that the agencies are still struggling with in terms of how that gets folded into the model,” said Cooper.

Classic24 RFA CEO Cooper on GREET delay 6:35

American Coalition for Ethanol (ACE) CEO Brian Jennings added that since the credits are to be based on lifecycle greenhouse gas (GHG) emissions, every single point of carbon intensity has value, which makes it essential to get the details around any modifications to the GREET model right. “That’s why we wrote the Interagency Working Group earlier this week to emphasize the importance of a GREET model for 40B and 45Z which includes meaningful carbon credits for climate-smart agriculture practices as illustrated by ACE’s multi-year project supported by USDA’s NRCS RCPP program. We also cautioned the Interagency Working Group against a final model approach which arbitrarily inflates land use change penalties that have been disproven by real-world observations of what is actually occurring.”

Audio, aviation biofuels, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF, USDA

ZimmCast on Clean and Renewable Fuels

Cindy Zimmerman

ZimmCastThe push for everything to be more carbon neutral and sustainable has never been stronger, and that continues to increase the demand for clean and renewable fuels.

Clean Fuels Alliance America and the Renewable Fuels Association have both held their annual conferences this year to focus on the challenges and opportunities for the U.S. biofuels industry. The Clean Fuels Conference was held in Fort Worth and the National Ethanol Conference took place in San Diego.

This episode of the ZimmCast includes comments from leaders of both organizations, Secretary of Agriculture Tom Vilsack, and representatives from the two major players in the Sustainable Aviation Fuel (SAF) industry – Gevo and LanzaJet.

Listen to the episode here:ZimmCast 726 - Clean and Renewable Fuels (22:25)

That’s the ZimmCast for this week. I hope you enjoyed it and thank you for listening.

Subscribe to the ZimmCast in:

Audio, aviation biofuels, Biodiesel, Clean Fuels Alliance, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

Ethanol Volumes Up in 2023, Blend Rate Hit Record

Cindy Zimmerman

The latest data from the Energy Information Administration show that U.S. ethanol production and consumption rose nearly two percent in 2023 to reach their highest levels since 2019, while the blend rate hit a record 10.39 percent, pushing further above the hypothetical 10-percent “blend wall,” according to the Renewable Fuels Association (RFA).

Once again, the ethanol blend rate exceeded 10% each month, twice approaching 10.70 percent. This progress is the result of continued expansion in the number of retail stations offering E15, a blend containing 15% ethanol that is typically priced at a significant discount to regular unleaded gasoline, together with waivers by the Biden administration allowing E15 to be sold year-round. Additionally, EIA’s estimate of E85 sales hit a record high, as ethanol flex fuels such as E85 have been especially popular in California under the state’s Low Carbon Fuel Standard.

“It is clear from the data that drivers are choosing mid- and high-level blends of ethanol where those fuels are offered. While American consumers still face elevated prices for many basic necessities, ethanol saves them money at the pump,” said RFA President and CEO Geoff Cooper.

E15, E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

GREET Model May be Announced at Classic

Cindy Zimmerman

A record number of attendees at the Commodity Classic today will hear from both USDA Secretary Tom Vilsack and EPA Administrator Michael Regan in an unprecedented appearance that is expected to announce the updated GREET model that would allow corn-based ethanol to qualify as a feedstock for sustainable aviation fuel (SAF) credits.

Mary Kay Thatcher, Federal Government and Industry Relations for Syngenta, says speculation is they will be bringing good news. “They both requested to be here so you have to believe that in an election year, you don’t bring bad news,” said Thatcher. “The speculation is that Administrator Regan will indeed announce something about the GREET model.”

However, Thatcher says it may take some time to figure out the details of the announcement. “I suspect it’s going to be so darn complex…it’s really going to take a few days to read the fine points.”

Listen to this interview with Thatcher and stay tuned for the news from Classic today.
Classic24 Mary Kay Thatcher, Syngenta 5:29

2024 Commodity Classic Photo Album

Audio, aviation biofuels, Commodity Classic, Ethanol, Ethanol News, Syngenta

Ethanol Industry Partners for Progress

Cindy Zimmerman

L-R: Troy Bredenkamp, RFA; Lance West, API; Rick Gezelle, Toyota; Marykate O’Brien, Southwest Airlines; Doug Kantor, NACS; Harold Wolle, NCGA

Powered by Partnerships was the theme of the 2024 National Ethanol Conference last week in San Diego and the partners for the ethanol industry now include some brand new alliances and former adversaries.

The Partnering for Progress panel at the conference included representatives from the petroleum industry, car makers, airlines, convenience stores, and farmers.

Much of the conversation centered around lowering carbon intensity and being part of the sustainable aviation fuels market. “If we’re going to motivate farmers to produce low carbon corn, there has to be a financial incentive for them,” said National Corn Growers Association president Harold Wolle.

NCGA president and Minnesota farmer Harold Wolle

The highly anticipated revision of the GREET model that will determine the future for corn ethanol in SAF is expected to be announced March 1, as Wolle and thousands of corn growers are gathered this week in Houston for the Commodity Classic. “I want to see a model that accurately depicts what we’re doing on the farm,” said Wolle. “We need to be able to show that we have lower carbon intensity corn as a feedstock for ethanol and sustainable aviation fuel.”

In addition to Wolle, the panel included Lance West with the American Petroleum Institute, Rick Gezelle of Toyota, Marykate O’Brien with Southwest Airlines; and Doug Kantor, NACS. RFA Senior VP, Government & Public Affairs Troy Bredenkamp moderated the conversation.

NEC24 Partnering for Progress panel 1:00:14

NEC24 Interview with Harold Wolle, NCGA 5:20

2024 National Ethanol Conference Photo Album

Audio, aviation biofuels, Carbon, Ethanol, Ethanol News, National Ethanol Conference, NCGA, Renewable Fuels Association, RFA