New Study to Assess GHG Impact of Ethanol

Joanna Schroeder

A new study will come out this fall that found that supplementing cattle feed with corn stover decreases the amount of greenhouse gases created during corn ethanol production. The research was designed to assess the impact on the carbon intensity level of a corn ethanol pathway when factoring in the replacement portion of corn grain for feed with corn stover. The study was conducted by Life Cycle Associates and supported by the National Corn Growers Association (NCGA).

“It only makes sense that farmers place an incredible priority of caring for the environment,” said NCGA Ethanol Committee Chair Chad Willis, a grower from Willmar, Minn. “Natural resources, such as healthy soil and clean air and water, enable us not only to make a living but also  to continue what, for most, is a family tradition.”

“Today’s farmers take an active role in ensuring that we adopt farm practices that have been scientifically shown to raise the largest crop possible using the fewest resources, be they nutrients, land or water,” continued Willis. “NCGA supports our efforts by making the solid, scientific information necessary to act as good stewards is readily available.”

One of the criticisms of life cycle analysis is where to begin and where to end. Researchers can choose different starting and stopping points, for example from cradle-to-grave, cradle-to-gate, cradle-to-cradle and well-to-wheel. When selecting when the life cycle analysis evaluation process begins and ends, it allows researchers to more accurately model the full greenhouse gas impact based on the current situation, or how it would be affected if a variable were changed.

Another advantage of conducting lifecycle analyses is that it can be determined where in the corn or ethanol processes resources are consumed or conserved. This enables the agricultural or biofuels industry to adopt technologies and processes that conserve resources while developing ways to improve the processes that consume the most resources. This also can help both industries save resources and costs.

corn, Ethanol, NCGA, Research

Poultry, Govs Make Case for RFS Waiver; RFA Refutes

John Davis

Poultry producers are getting some help from several governors in their call for the EPA to waive the Renewable Fuels Standard (RFS), but officials with the Renewable Fuels Association (RFA) say the RFS is working, and no waiver is needed. Georgia Gov. Nathan Deal has joined Arkansas Gov. Mike Beebe and North Carolina Gov. Beverly Perdue in asking for the waiver (see Deal’s letter here). The EPA has posted the notice in the Federal Register and is accepting public comments for the next 30 days. A decision would come within 90 days.

The poultry industry backs the waiver request, with the National Chicken Council saying, “it is now abundantly clear that severe economic damage has occurred, and will continue, as a result of the RFS’ strain on the corn supply that has been exacerbated by the worst drought in more than 50 years.” Their colleagues at the National Turkey Federation agree. In an interview, the group’s president Joel Brandenberger says that lawmakers created the waiver just for disastrous droughts. “If this isn’t such a situation, you would have to conclude that the waiver process as written is worthless.”

But the RFA points out there are an estimated 2.5 billion RFS credits accumulated over the past two years as a result of ethanol blending above RFS requirements. Officials point out that gives oil refiners extraordinary flexibility to meet RFS targets. “Together with ample ethanol supplies and slower than expected gasoline consumption, these credits make the RFS workable through the 2012/2013 corn marketing year.”

Brandenberger asserts that it is the standard combined with the drought creating tight supplies that is pushing up prices. “The [RFS] has been distorting the corn market from the first day it was created in 2005.” But the RFA counters that this will still be the eighth-largest corn crop in U.S. history, and globally, the second-largest ever. And the group also points to the large amount of animal feed made from ethanol production. “One-third of every bushel used by an ethanol plant is returned to the feed market as high-protein feed. Ignoring this exaggerates the impact of ethanol on corn supplies,” the RFA stated.

Listen to my interview with Brandenberger here: Interview with Joel Brandenberger, President, National Turkey Federation

Audio, Ethanol, Ethanol News, Government, RFA, RFS

Aventine Enters Into Restructuring Agreement

Joanna Schroeder

Aventine Renewable Energy has announced the company has entered into a Restructuring Agreement with 100% of its term loan lenders. Under the terms of this agreement the company will convert the majority of its outstanding term loan debt into newly issued common equity, representing, on a fully diluted basis, approximately 92.5 percent of the issued and outstanding common stock after the issuance.

The company’s board of directors have approved the agreement and 60 percent of the stock holders have also approved the agreement. If the agreement is fully executed, Aventine’s existing debt should be reduced by nearly $135 million. In addition, the agreement would not affect unsecured creditors and trade creditors will continue to receive payments. The transactions are targeted to close sometime in the 3rd quarter of this year.

“The Company would like to thank its lenders and significant stakeholders for supporting its business and operations. These are difficult times for the industry and the consummation of these transactions is expected to result in a much stronger balance sheet for the Company,” said John Castle, Aventine’s Chief Executive Officer.

Company Announcement, Ethanol

Kansas Drivers Have New E15 Retail Station

Joanna Schroeder

Drivers who live and travel through Ottawa, Kansas now have access to E15. The Zarco 66 station located at 2518 E. Logan (intersection of I-35 & HWY 68) has become the second retail gas station to offer E15 in the U.S. Earlier this summer, the Environmental Protection Agency (EPA) gave final approval for the sale of E15 and customers are already showing great support for the higher blend of ethanol. On July 8, 2012 Zarco 66 began offering E15 to drivers in Lawrence, Kansas and the fuel sales are hitting high speeds.

“We are excited to add a high octane renewable fuel choice for our customers on the go in Ottawa, Kansas as we will continue to reduce our dependency on foreign oil through the use of renewable energy sources,” said Scott Zaremba, owner of Zarco 66 stations.

While ethanol has many advantages, one is that it has the ability to help motorists save money at the pump. According to an updated study authored by professors at the University of Wisconsin and Iowa State University, ethanol savings in the Midwest in 2011 were $1.69 per gallon while average savings across the county was $1.09 per gallon.

“American consumers are looking for a choice when it comes to fueling their vehicles, and they now have one more domestic, renewable fuel option with E15 becoming more commercially available,” said Renewable Fuels Association RFA) President and CEO Bob Dinneen. “Ethanol continues to help consumers during these difficult economic times by lowering prices at the pump and supporting more than 400,000 jobs across the country that can’t be outsourced.”

RFA is working with retailers as well as automakers and consumers to ensure E15 is used properly. Vehicles and light duty trucks manufactured after 2001 can take advantage of E15.

The association, along with the American Coalition for Ethanol (ACE) have been working together through their BYO Ethanol program to help interested gas retailers install pumps to sell higher blends of ethanol including E15 and E85. Those interested retailers can review the E15 Retailer Handbook for free to learn more about how to make additional revenue through the sale of E15.

biofuels, blends, Ethanol, RFA

POET & Agrivida Sign Technology Deal

Joanna Schroeder

POET Research has signed a technology collaboration joint development agreement for cellulosic ethanol with Agrivida, a developer of biotechnology platforms for feedstock and feedstock processing. As part of the four-year agreement, POET and Agrivida will develop Agrivida’s technology platforms as a means of reducing capital and operating costs of commercialized cellulosic ethanol biorefineries.

The first feedstock of focus will be corn stover, the key feedstock that POET has been focusing on to develop cellulosic ethanol at its plant under construction in Emmetsburg, Iowa known as Project Liberty. Agrivida is helping POET to develop traits engineered to improve the pretreatment of corn stover and make it easier to break down cellulose while reducing the cost of enzymatic application. These are key areas that need to be refined to help cellulosic ethanol reach price parity per gallon with other forms of first generation biofuels and traditional transportation fuels.

“POET is committed to working with new and innovative technologies that will improve the cost and value of cellulosic ethanol production,” said Dr. Wade Robey, POET Senior Vice President and Chief Technology Officer. “If successful, Agrivida’s novel approach to increase the functionality and value delivery of corn stover will work well with other technologies being developed by POET.”

POET will evaluate and test Agrivida’s proprietary, low-severity corn stover feedstock processing technology, which is targeted to provide significant capital and operating cost savings at commercial facilities.

Mark Wong, Agrivida CEO said, “We are excited to be working with POET to improve the economics of advanced biofuels production. POET has one of the most advanced commercial cellulosic programs in the world with strong research, development and commercial deployment capabilities. POET will be a great partner as Agrivida transitions its technology from research and development to a commercialization phase.”

advanced biofuels, Cellulosic

Solar Energy Industry Gets Legislative Win in NY

Joanna Schroeder

The solar industry in New York state got a legislative win when Governor Andrew Cuomo approved several bills that give tax exemptions to solar projects in the state. Earlier this month the Governor announced $30 million in funding for 16 PV projects through an NY-Sun sub-program as well as $107 million in funding for customer-sited solar photovoltaic (PV) projects larger than 50 kW. The funding is being distributed over two years with $36.4 million available for 2012 and $70.5 million available in 2013 through the NY-Sun Competitive PV program.

“We applaud Governor Cuomo, as well as Senator George Maziarz and Assemblyman Cahill for their bipartisan work paving the way for solar to succeed in New York State,” said Carrie Cullen Hitt, Vice President for State Affairs at the Solar Energy Industries Association (SEIA). “By making it more affordable for businesses and homeowners to install solar systems, these laws are vital to helping New York realize its goal of 45 percent renewable-powered electricity by 2015. We look forward to continuing to work with state leaders so that New York can meet its total solar market potential in the near future.”

Three bills were signed: Bill A 34-B provides tax credits for solar energy system equipment; Bill A 10620 provides for the amount of tax abatement for solar generating systems in cities of one million or more; and Bill A 5522-B exempts the sale and installation of commercial solar energy systems from state sales and compensating use taxes and allows municipalities to grant these systems a tax exemption as well.

The state also has several other policies in place to promote solar investment. These include a feed-in tariff through Long Island Power Authority (LIPA), a New York State Energy Research and Development Authority (NYSERDA) customer-sited tiered program, and rules for net metering that allows customers credit for excess power generated and sent back to the grid.

Nearly 7,500 solar photovoltaic (PV) solar installations have been completed in New York making the state 6th in number of PV systems. When combined, the systems have the capacity to produce 121 megawatts of energy or enough to power around 20,000 average sized homes.

Electricity, Energy, Legislation, Solar

SAFUG Gains New Member

Joanna Schroeder

The Sustainable Aviation Fuel Users Group (SAFUG) has added a new member – United Airlines. The group’s goal is to accelerate the development and commercialization of aviation biofuels. The members of SAFUG represents nearly 32 percent of commercial aviation fuel demand, and upon joining, commit to testing and using aviation biofuels.

United Airlines has been one of the leaders of the adoption of sustainable fuel with the airline testing aviation biofuels in November 2011 during a U.S. commercial flight. Prior to this, United Airlines held several demonstration flights dating back to 2009. In addition to joining SAFUG, the company also signed a letter of intent to purchase at least 50 million gallons of biofuels for use in its operations.

“We are excited to collaborate with other industry leaders in our shared quest to advance sustainable biofuels,” said Jimmy Samartzis, managing director of Global Environmental Affairs and Sustainability for United. “We will all benefit from our collective work to find solutions to make alternative fuel available at commercial scale and secure a sustainable future for aviation.”

This move is just one of several United is making to decrease its impact on the environment. The company has also been investing in more fuel-efficient aircraft and equipment and has more than 3,600 ground support equipment vehicles, or nearly 26 percent of its fleet of ground support equipment, is electric or alternatively fueled, among other initiatives.

advanced biofuels, aviation biofuels

EPA Requests Comment Period for RFS

Cindy Zimmerman

The Environmental Protection Agency has officially requested a comment period to start the process toward consideration of a waiver for the Renewable Fuel Standard (RFS).

EPA issued the request for comments in response to petitions from the Governors of Arkansas and North Carolina last week seeking a waiver of the volume requirements for corn ethanol under the RFS. The request was submitted for publication in the Federal Register and the EPA will decide on the waiver request “within 90 days of receiving it, in consultation with the Departments of Agriculture and Energy.”

EPA is requesting comment on any matter that might be relevant to review of the waiver request, including –

whether compliance with the RFS would severely harm the economy of Arkansas, North Carolina, other States, a region, or the United States; whether the relief requested will remedy the harm; to what extent, if any, a waiver would change demand for ethanol and affect prices of corn, other feedstocks, feed, and food; the amount of ethanol that is likely to be consumed in the U.S. during the relevant time period, based on its value to refiners for octane and other characteristics and other market conditions in the absence of the RFS volume requirements; and if a waiver were appropriate, the amount of required renewable fuel volume appropriate to waive, the date on which any waiver should commence and end, and to which compliance years it would apply.

Ethanol, Ethanol News, Government

Dynamic Fuels Get EPA Renewable Gas Registration

John Davis

Dynamic Fuels, in a joint venture with Syntroleum, has garnered the EPA’s Part 79 registration for its Renewable Gasoline Blendstock 10. This Syntroleum news release says the designation allows enables Dynamic Fuels to generate 1.5 Advanced Biofuel, or D5, RINS for each gallon of its renewable gasoline blendstock when blended at 10 percent. The Dynamic Fuels’ Renewable Gasoline Blendstock can be blended directly into gasoline.

At its design basis production rate of 75 million gallons per year, Dynamic Fuels’ Geismar Plant should produce approximately 7.5 million gallons of renewable gasoline blendstock, or 11.25 million Advanced Biofuel RINS, per year. Advanced Biofuel RINS have traded for as much as $0.83 per RIN during 2012 and are currently approximately $0.46.

Dynamic Fuels also received the EPA Part 79 Registration for drop-in renewable fuels for Renewable Diesel Blendstock up to a 20 percent blend with petroleum diesel in 2009 and for Renewable Diesel for use at up to a 100 percent in 2011.

biofuels, Environment, Government

Ethanol Safety Seminar Offered by RFA

John Davis

The Renewable Fuels Association (RFA), along with Norfolk Southern Corp., CN Railway and Archer Daniels Midland Company (ADM) will co-host an Ethanol Safety Seminar on August 22nd in Decatur, IL. The free seminar will give first responders, hazmat personnel, safety teams and the general public in-depth information on proper training techniques needed to effectively respond to an ethanol-related emergency.

“Ethanol is the highest volume commodity transported by rail each year,” said David Schoendorfer, Manager of Hazardous Materials for Norfolk Southern Corp. “In the event of an incident, it is imperative that local emergency responders are prepared, and providing this training is part of our community outreach effort to ensure they are.”

“Focusing on emergency measures to take in the event of an incident involving ethanol products is an important part of preplanning,” said Scott McLeod, Sr. Dangerous Goods Officer for CN Railway.

“Safety is a primary focus for the ethanol industry as this fuel is the number one hazardous material shipped on U.S. railways,” said Matt Bruns, VP of Corn Processing for Archer Daniels Midland Company (ADM). “The Ethanol Safety Seminar focuses on numerous aspects of responding to an ethanol-related incident, helping those first on the scene to easily assess the situation and react appropriately.”

To register for one of the two seminars offered between 9:00am to 2:00pm and from 5:30-10:00pm on August 22nd, click here.

Other Ethanol Safety Seminars throughout 2012 are scheduled in Defiance, OH on August 29th; Willmar, MN on September 9th; Pittsburgh, PA on September 13th; Elgin, IL on October 2nd; Bessemer, AL on October 29th; and Fort Worth, TX on November 29th.

More information on ethanol emergency responses is available at www.EthanolResponse.com.

Ethanol, Ethanol News, RFA, safety