DriveClean Initiative Launches

Cindy Zimmerman

A diverse coalition of organizations has launched DriveClean, a multi-sector initiative to work on bipartisan legislation creating a market-based, technology-neutral national Clean Fuel Standard (CFS) during the 118th Congress that convenes in January.

The coalition is made up of organizations representing agriculture, utilities, renewable fuel producers, environmentalists, technology firms, EV charging companies, and truck and bus manufacturers. Among those groups are the American Coalition for Ethanol; Alder Fuels; Christianson CPAs & Consultants; ClearFlame Engine Technologies; CleanFuture; Electrify America; e-Mission Control; Great Plains Institute; Low-Carbon Fuels Coalition; Fulcrum Bioenergy; POET; Propel; Rivian; Renewable Fuels Association (RFA), and World Energy – just to name a few.

“The biofuels industry applauds the efforts of the DriveClean initiative, which build on the many successes of the federal Renewable Fuels Standard while leveling the playing field for additional home-grown fuels and technology,” said Geoff Cooper, RFA President and CEO. “Our members are ready to help push Clean Fuel Standard legislation across the finish line and put the U.S. on an achievable path to meeting near- and long-term decarbonization goals.”

“There are few tools that have proven more effective than Clean Fuel Standards for driving rapid decarbonization, as has been seen in states like California. They are performance-based, technology-agnostic, and fuel-neutral, the perfect combination for unlocking the private sector to invest, innovate and drive down carbon emissions,” said Dr. BJ Johnson, Co-Founder and CEO at ClearFlame Engine Technologies, who spoke at the recent 2022 American Coalition for Ethanol Conference.

Listen to his presentation at the ACE here:
ACE22 remarks BJ Johnson, ClearFlame Engine (14:00)

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Lowers Corn Use Outlook

Cindy Zimmerman

USDA’s World Agricultural Supply and Demand Estimates report for September calls for lower supplies, smaller feed and residual use, reduced exports and corn used for ethanol, and tighter ending stocks for the 2022-23 corn crop.

Projected beginning stocks for 2022/23 are 5 million bushels lower based on essentially offsetting export and corn used for ethanol changes for 2021/22. Corn production for 2022/23 is forecast at 13.9 billion bushels, down 415 million from last month on reductions to harvested area and yield. The national average yield is forecast at 172.5 bushels per acre, down 2.9 bushels. Harvested area for grain is forecast at 80.8 million acres, down 1.0 million. Total U.S. corn use is cut 250 million bushels to 14.3 billion. Feed and residual use is lowered 100 million bushels based on a smaller crop and higher expected prices. Exports are cut 100 million bushels to 2.3 billion while corn used for ethanol is lowered 50 million to 5.3 billion. With supply falling more than use, ending stocks are down 169 million bushels to 1.2 billion. The season-average corn price received by producers is raised 10 cents to $6.75 per bushel.

corn, Ethanol, Ethanol News, USDA

USDA Announces Climate Smart Commodities Project Funding

Cindy Zimmerman

The U.S. Department of Agriculture is investing up to $2.8 billion in 70 selected projects under the first wave of the Partnerships for Climate-Smart Commodities funding opportunity, with more projects to be announced later this year. More than 450 proposals were submitted for the funding opportunity and the strength of the projects identified led USDA to increase its investment from the initial $1 billion to more than $3 billion.

Among the proposals approved this round that benefit the biofuels sector is $30 million for the GEVO Climate-Smart Farm-to-Flight Program. The project aims to create critical structural climate-smart market incentives for low carbon-intensity corn as well as to accelerate the production of sustainable aviation fuel, which includes an immediate market opportunity to sell climate-smart, low-climate-impact corn.

Secretary of Agriculture Tom Vilsack discussed the announcement with reporters Tuesday afternoon and made the official announcement Wednesday morning.
Vilsack Climate Smart Partnership press call 32:26

Vilsack Climate Smart Partnership announcement 12:50

Audio, aviation biofuels, biofuels, corn, Ethanol, Ethanol News, USDA

RFA CEO Joins White House Climate Law Celebration

Cindy Zimmerman

RFA CEO Geoff Cooper arrives at the White House Tuesday

Renewable Fuels Association (RFA) President and CEO Geoff Cooper attended an event at the White House Tuesday to celebrate passage of the Inflation Reduction Act which includes provisions to benefit the biofuels sector.

“There are lots of tax credit and grant provisions in there for renewable fuels and we are most excited about the sustainable aviation fuel tax credit,” said Cooper during a reporter roundtable Tuesday morning. “We see huge opportunity for ethanol in the SAF space in the future. There’s already significant investment being made in our industry to transform some existing first generation biorefineries into sustainable aviation fuel facilities.”

Cooper says other provisions in the legislation for the ethanol industry include the Clean Fuels Production Credit, which is a performance based, technology neutral credit. “We already have lots of ethanol in the marketplace today that is reducing greenhouse gas emissions by 50 percent,” he said.

Cooper commented on a number of other ethanol industry issues, including the potential of railway and port transportation strikes. “If we can’t move ethanol, plants have to shut down – it’s that simple.”

Listen to the entire roundtable here:
RFA Reporter Roundtable 40:36

Audio, biofuels, Carbon, carbon capture, E15, Ethanol, Renewable Fuels Association, RFA

Clean Fuels and EPA Pause Food Waste Records Litigation

Cindy Zimmerman

Clean Fuels Alliance America and the U.S. Environmental Protection Agency have agreed to pause on a lawsuit challenging new recordkeeping requirements for biodiesel and renewable diesel producers who use separated food waste, such as used cooking oil, as a feedstock.

The parties agreed to put the case in abeyance through November 30, 2022, while Clean Fuels and its members continue working with the Environmental Protection Agency to develop practical compliance options for biodiesel and renewable diesel producers. “We appreciate EPA’s willingness to meet with our members, listen to the issues they faced in complying with the new recordkeeping requirements, and work cooperatively to help our members meet the requirements,” said Clean Fuels’ Vice President of Federal Affairs Kurt Kovarik.

On August 11, 2022, the Court of Appeals granted Clean Fuels’ motion to sever the dispute from the RFS Power Coalition case, a consolidated group of challenges to EPA’s final 2020 Renewable Fuel Standard rule. Clean Fuels sought this action because EPA had failed to revise the new separated food waste requirements in the rewritten 2020 RFS rule and because Clean Fuels’ members demonstrated harm from the new requirements. When the Court granted Clean Fuels’ motion for severance, it put the case on a track for quicker resolution. EPA and Clean Fuels members have been working to develop alternative methods for biodiesel and renewable diesel producers to meet the new recordkeeping requirements.

Biodiesel, biofuels, Clean Fuels Alliance, EPA, renewable diesel

RFA Rebuts Reuters Ethanol Plant Emissions Article

Cindy Zimmerman

The Renewable Fuels Association responded to a Reuters article published Thursday entitled “How U.S. regulators allow ethanol plants to pollute more than oil refineries.”

The article states that “ethanol plants produce more than double the climate-damaging pollution, per gallon of fuel production capacity, than the nation’s oil refineries, according to a Reuters analysis of federal data” because the majority of U.S. biorefineries are exempt from an EPA requirement that plants use certain emissions-control processes.

RFA President and CEO Geoff Cooper sent the reporter the following statement when contacted for comment regarding the article. “To truly understand the climate impacts of transportation fuels, you have to look at the emissions associated with every step in the production process. Narrowly focusing on just one piece of the carbon lifecycle is inappropriate, misleading, and misses the forest for the trees. When all of the energy inputs and emissions related to producing corn ethanol are properly considered from beginning to end, it is clear that the fuel has a lifecycle carbon intensity that is 40-50% lower than gasoline. The science is clear that ethanol offers a significant and immediate carbon savings compared to petroleum.”

RFA added, “If one took the same analytical approach to electricity that the reporter is taking with ethanol and petroleum refining, the emissions related to electricity generation across most of the United States would be 14 to 35 times worse than the estimate for ethanol (per gasoline-gallon equivalent) and 27 to 66 times worse than the estimate for refined petroleum products (the low end is natural gas; high end is coal).”

Cooper concluded, “The fact is, ethanol and other biofuels offer significant carbon emissions reductions today, and there is a clear and workable pathway toward net-zero carbon emissions by 2050 or sooner.”

corn, Ethanol, Ethanol News, Renewable Fuels Association, RFA

U.S. Exports of Ethanol and DDGS Up in July

Cindy Zimmerman

In the latest trade monitor update from the Renewable Fuels Association, U.S. exports of both ethanol and the co-product dried distillers grains (DDGS) were up in July.

Exports of ethanol increased six percent in July to 107.2 million gallons (mg), marking the tenth consecutive month that exports were over 100 mg.

Canada imported 41.6 mg, up 1%, to maintain its status as our largest customer. Sales to Singapore quadrupled to 12.3 mg (its largest imports of U.S. ethanol since Jan. 2018), while exports to the Netherlands increased 7% to 11.4 mg. However, shipments to South Korea declined by a third to an 8-month low of 9.3 mg. Other substantial importers of U.S. ethanol included Peru (5.6 mg, +73%), Mexico (5.3 mg, +10%), and the United Kingdom (4.5 mg, -63%). China and Brazil again were not key market players in July. Total U.S. ethanol exports for the first seven months of 2022 were 932.9 mg, up 30% from the same period in 2021 and remaining on a record pace.

DDGS exports in July were up five percent to a six month high of 1.06 million metric tons.

Mexico returned as our largest market, up 40% to 221,587 mt, representing 21% of July shipments. Turkey imported 111,813 mt, up 2% and its largest volume of U.S. DDGS in a year. Vietnam cut its imports by half to 103,068 mt on the heels of sharply higher sales in June, and exports to Indonesia slipped 1% to 93,161 mt. These four countries represented half of our export market in July. Other larger markets included Canada (87,431 mt, -11%), South Korea (86,071, +6%), Japan (59,187 mt, +118%), Israel (54,776 mt, +90% to a record high), and Ireland (45,388 mt, +36%). The remaining U.S. DDGS shipments were dispersed among another 20 countries. Year-to-date exports totaled 6.73 million mt, which is 4% greater than the same period in 2021.

Increasing markets for U.S. DDGS exports will be in focus next month at the Export Exchange, which allows overseas attendees the opportunity to build relationships with U.S. suppliers. This will be the first time the biennial event, which is co-sponsored by RFA, has been held since 2018. The conference in Minneapolis October 12-14 is expected to attract more than 350 attendees, including 150 from 50 countries participating.

RFA President and CEO Geoff Cooper talked about ethanol industry exports and the Export Exchange during this interview from the Farm Progress Show last week.
FPS22 Interview with RFA CEO Geoff Cooper (8:46)

Audio, Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Ethanol Report from Farm Progress Show

Cindy Zimmerman

RFA’s Robert White, Geoff Cooper, and Jared Mullendore at Farm Progress Show

Ethanol was in the spotlight at the Farm Progress Show in Iowa this week and the Renewable Fuels Association was there to promote the high octane benefits of the fuel and the role of biofuels and farming in combating climate change.

RFA president and CEO Geoff Cooper, Director of Government Affairs Jared Mullendore, and Vice President of Industry Relations Robert White were all at the show and in this episode of the Ethanol Report podcast they comment on some of the latest industry news. Topics include California’s plan to ban gasoline powered vehicles, funding for higher blends infrastructure, year-round E15, the inflation reduction act, and what’s next for the RFS.

Listen to the Ethanol Report here – or subscribe using your favorite podcast platform.
Ethanol Report 9-1-22 (17:22)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

Audio, Ethanol, Ethanol News, Farm Progress Show, Renewable Fuels Association, RFA

#FPS22 Legislative Panel on Outlook for Biofuels

Cindy Zimmerman

Agri-Pulse editor Sara Wyant moderated a legislative outlook panel of mostly Midwest lawmakers in the Syngenta tent at Farm Progress Show Wednesday.

Joining Wyant were (L-R) Reps. Rodney Davis (R-IL); Mariannette Miller-Meeks (R-IA); Vicky Hartzler (R-MO); GT Thompson (R-PA); Randy Feenstra (R-IA); and Ashley Hinson (R-IA). The discussion included what might happen if Republicans regain the House, farm bill planning, the “Inflation Reduction Act,” and biofuels.

Rep. Davis, who lost his re-election bid this year in a redistricted primary, said the Congressional Biofuels Caucus needs to stick together to keep ethanol and other biofuels moving forward. “There’s always going to be an attack on our ethanol system and our biofuels processing…and it’s a bipartisan attack,” said Davis. “We can’t introduce legislation that splits the biofuels caucus because it only gives the anti-biofuels folks more reason to go after our policies and programs.”

House Agriculture Committee Ranking Member GT Thompson, who is from Pennsylvania, said the biofuels industry also needs to work with the oil industry. “We need to serve as marriage counselors because we need both aspects of the energy family to come together,” said Thompson. “Because the alternative is this stupid idea of electric vehicles.”

Listen to the entire panel here.
FPS22 Syngenta legislative panel (54:24)

2022 Farm Progress Show Photo Album

Audio, biofuels, Ethanol, Ethanol News, politics

RFA Showcases Ethanol Octane Power at #FPS22

Cindy Zimmerman

The Renewable Fuels Association (RFA) is showcasing its custom-made E85 vehicles at the Farm Progress Show, a 1200-hp flex-fuel Jeep Wrangler and the new Can-Am X3, both built by Kenny Hauk, owner of Hauk Designs.

“These were both built on television programs, reaching the masses,” says Robert White, Vice President of Industry Relations. “There’s a lot of attention on the off-road side of things. Ethanol is one of those ways that can help clean up the air and allow you to do more and have more fun because the dollar stretches more when you’re using ethanol.”

White says RFA is excited about helping more retailers offer higher ethanol blends with the recent announcement of $100 million available under the Higher Blends Infrastructure Incentive Program and another $500 million in grants for higher-blend biofuels infrastructure in the “Inflation Reduction Act.”

“This will allow both E15 and E85 to find new consumers and new markets,” said White. “We’re helping over 20 different companies already with their application and we’re talking hundreds upon hundreds of stations in the works.”

The Farm Progress Show runs through the end of day today in Boone, Iowa.
FPS22 Interview with Robert White, RFA (3:08)

2022 Farm Progress Show Photo Album

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