Chevron Completes Acquisition of REG

Cindy Zimmerman

Chevron Corporation has completed its previously announced acquisition of Renewable Energy Group, Inc. following approval by REG stockholders.

“We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron. “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilize today’s fleets and infrastructure.”

Cynthia “CJ” Warner, former president and CEO of REG, has been appointed to Chevron’s Board of Directors with the completion of the acquisition.

Clean Fuels Alliance America CEO Donnell Rehagen welcomed news of the acquisition and noted that Chad Stone of REG will continue to lead the Clean Fuels Governing Board as chair.

“This is a meaningful acquisition for our industry and for Clean Fuels for many reasons,” said Rehagen, who noted that Iowa-based REG has been an association member since 2006. “REG has been a leader in our industry from its inception, being one of the very first companies to build a biodiesel plant in the United States. This leadership in renewable fuels, coupled with the history and strength in the energy sector Chevron brings, will continue to build on the momentum our industry is experiencing as the country continues on its path of carbon reduction through cleaner fuels.”

With 11 biorefineries in the U.S. and Europe and more than half a billion gallons of production of biodiesel and renewable diesel, REG is also one of Clean Fuels’ largest members in terms of fuel production.

REG will remain headquartered in Ames, Iowa, and the team will focus on growing Chevron’s portfolio of lower carbon fuels and feedstocks. The combined company is committed to harnessing complementary cultures and proven track records of developing innovative technologies to grow its renewable fuels production capacity to 100,000 barrels per day by 2030.

Biodiesel, Clean Fuels Alliance, REG, renewable diesel

ACE Introducing Carbon Intensity Calculator at FEW

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is introducing a new carbon intensity (CI) calculator to the industry this week during the International Fuel Ethanol Workshop & Expo in Minneapolis.

The CI calculator was developed as a tool to help producers understand the carbon intensity (CI) of their farms and ethanol operations. There is also a simplified version of the tool to raise awareness about factors impacting the CI of ethanol. Both help illustrate corn ethanol’s ability to attain net-zero and net-negative greenhouse gas emissions.

“ACE is focused on highlighting how climate-smart farming practices, efficiencies at ethanol plants, and the capture and sequestration of CO2 from facilities puts ethanol on a trajectory to reach both net-zero and net-negative emissions; a trajectory unique to ethanol,” said Brian Jennings, ACE CEO.

Jennings talks about the potential for the CI calculator in this interview.
ACE CEO Brian Jennings interview 10:46

The calculator was created by South Dakota farmer and ACE board member Ron Alverson to allow users to estimate a carbon score and compare it to the Argonne National Laboratory’s GREET model and average scores used by the California Low Carbon Fuel Standard.

“When I first looked at the GREET model’s ‘Midwest average’ carbon intensity for corn production, I immediately saw the potential for rapid reductions with more accurate modeling that reflected actual climate-smart production practices being employed by tens of thousands of farmers across the Midwest,” said Alverson. “The CI calculator we developed at ACE is a tool for farmers and ethanol producers to see for themselves what their potential is to lower their carbon score.”

Listen to Alverson talk about the carbon intensity calculator at last year’s American Coalition for Ethanol annual conference.
ACE 2021 Interview with Ron Alverson, past ACE president 4:26

ACE 2021 - Ron Alverson remarks 14:19

ACE, Audio, Carbon, carbon capture, Ethanol, Ethanol News, FEW

Ohio Governor Petitions EPA on E15

Cindy Zimmerman

Ohio Governor Mike DeWine sent a letter Friday to Environmental Protection Agency Administrator Michael Regan asking that the agency permanently remove restrictions around the sale of 15 percent ethanol (E-15) fuel.

“E-15 offers Ohio consumers cleaner emissions, more fuel from renewable sources, and, perhaps most critically, a less expensive fuel option,” said Governor DeWine. “By permanently removing unneeded summertime E-15 regulations, we can encourage more Ohio gas stations to offer E-15 and give Ohioans an option that provides real gas price relief.”

Earlier this year, the U.S. EPA issued an emergency waiver for 2022, allowing for the sale of E-15 during the summer months when environmental regulations typically prohibit its use. Governor DeWine is requesting that the summer waiver become permanent beginning in the summer of 2023.

Renewable Fuels Association President and CEO Geoff Cooper thanked Gov. DeWine for joining eight governors from Iowa, Illinois, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin that took a similar action earlier this year.

“Gov. DeWine should be applauded for pursuing a simple regulatory solution that will allow consumers in Ohio to benefit from E15’s lower cost and lower emissions throughout the year,” said Cooper. “We continue to call on other states and the EPA to take similar action, so that the benefits of E15 can be permanently enjoyed by drivers across the nation.”

The E15 blend currently provides drivers savings of up to 40 cents a gallon or more, compared to regular unleaded E10 gasoline. Cooper also highlighted recent research from refining sector experts that showed the action sought by the governors would impact gasoline production costs by just 1.5 cents per gallon or less in the Midwest.

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

RFA Revved Up for 2022 Fuel Ethanol Workshop

Cindy Zimmerman

The Renewable Fuels Association is packing up the UTV and heading to Minneapolis next week to take part in the 38th annual International Fuel Ethanol Workshop and Expo next week.

This year, RFA has three staff members speaking at the conference, while also showcasing its recent build with Hauk Designs, the Flex-Fuel Can-Am UTV, at its Expo Booth.

“We are thrilled to be back again attending the 2022 Fuel Ethanol Workshop and Expo,” said RFA President and CEO Geoff Cooper, who provided the keynote address at last year’s FEW. “With some of our leading staff speaking each day of the conference, and with a great presence in the Expo again this year, we hope to help attendees see the great opportunity and innovation that lies ahead for our industry.”

RFA Vice President for Industry Relations Robert White will be presenting a look at today’s U.S. ethanol industry in the annual FEW Ethanol 101 Workshop, at 1:30 p.m. Monday. During the FEW General Session Tuesday morning, RFA Senior Vice President for Government and Public Affairs Troy Bredenkamp takes part in an executive roundtable on cementing ethanol’s place in tomorrow’s fuels portfolio. Finally, at 1:30 p.m. on Wednesday, Vice President for Technical and Regulatory Affairs Kelly Davis will moderate a breakout panel on exploring new uses for ethanol to diversify markets.

The Fuel Ethanol Workshop runs June 13-15.

Ethanol, Ethanol News, FEW, Renewable Fuels Association, RFA

Navigator to Provide Carbon Services for POET Plants

Cindy Zimmerman

Navigator CO2 Ventures has signed an agreement to provide carbon capture, utilization, and storage (CCUS) services to POET biorefineries on Navigator’s Heartland Greenway system.

The agreement outlines Navigator’s integrated CCUS services for approximately five (5) million metric tons of POET’s biogenic CO2 annually and establishes a collaborative path for the development of a central carbon offset marketplace and carbon use logistics platform. The system will phase in 18 of POET’s bioprocessing facilities across Iowa, Nebraska, and South Dakota, and is on schedule for operational in-service in 2025.

“We recognize that now is the time to take bold action to preserve our planet for future generations,” said Jeff Broin, POET Founder and CEO. “POET has been a leader in low-carbon biofuels and CO2 capture for commercial use for decades, and this project is another significant step in utilizing bioprocessing to accelerate our path to net-zero. We choose our partners carefully, and we believe Navigator has the expertise to deliver long-term value to rural America by further positioning agricultural commodities as a viable source of low-carbon liquid fuels to power our future.”

The companies say the joint effort will create the largest combined distribution network for high-quality, biogenic CO2. With the addition of POET to the platform, Navigator’s Heartland Greenway system will provide CCUS services for more than 30 industrial processors across the agriculture and food production value chains, representing over 10 million tons of annual CO2 emissions, including the two largest bioethanol producers in the United States.

biofuels, Carbon, carbon capture, Ethanol, Ethanol News

Indy 500 Highlights Ethanol’s Role in Global Market

Cindy Zimmerman

The U.S. Grains Council (USGC) in collaboration with the Indiana Corn Marketing Council, hosted delegations from Japan, South Korea, India and Indonesia at the recent Indianapolis 500 to see the role ethanol plays in the annual race.

Fourteen participants from Indonesia, Japan and Korea were in Illinois to gain on-the-ground experience including stops at farms, retail stations and ethanol plants.

In a similar fashion, a group of 11 participants from India’s automobile trade, government and petroleum industry were in Missouri to get a better understanding of the U.S. ethanol value chain and the environmental, economic and health benefits ethanol presents. Discussions at the various facilities spanned across the technology of ethanol pumps, retail infrastructure and production capacity.

Upon arriving in Indiana, both groups had the opportunity to meet with several drivers competing in the race before taking part in an educational session on ethanol blending and its benefits. The group heard from several speakers during the session: ethanol distributors and retailers, an automotive repair shop and a race organizing agency. The presentations facilitated technical conversations about best practices for ethanol blending among participants from the various countries.

Ethanol, Ethanol News, Indy Racing, USGC

Millions and Billions of Miles on E15

Cindy Zimmerman

NASCAR drivers have driven 20 million E15 miles on the track while regular drivers have logged more than 30 billion miles off the track on the 15% ethanol blend fuel, according to Growth Energy.

E15 is currently available at more than 2600 stations in 31 states and is offering drivers a lower priced alternative fuel with rising gas prices. E15 is approved for more than 96 percent of light duty vehicles, which account for 98 percent of all vehicle miles traveled in the United States. Even before the recent run-up in oil prices, it was estimated that nationwide access to E15 could save drivers $12.2 billion annually in fuel costs.

Sunoco Green E15 has powered NASCAR since 2011 and reduced greenhouse gas emissions by 20 percent across NASCAR’s three national touring series while also increasing horsepower on the racetrack. To celebrate the 20 million mile mileston, Austin Dillon drive the No. 3 Get Bioethanol Chevrolet for Richard Childress Racing Sunday at the NASCAR Cup Series Enjoy Illinois 300 presented by TicketSmarter.

E15, Ethanol, Ethanol News, NASCAR, Racing

RFA CEO Comments on Final EPA Actions

Cindy Zimmerman

The final regulatory actions taken today by the Environmental Protection Agency (EPA) bring certainty back to the Renewable Fuel Standard and pave the way for future growth in the production and use of low-carbon renewable fuels, and will lead to lower gas prices and greater energy security, according to the Renewable Fuels Association.

“At long last, the RFS is being put back on track. Today’s actions by EPA and the Biden administration restore integrity and stability to the RFS program after several years of wanton mismanagement and abuse by the previous administration,” said RFA President and CEO Geoff Cooper. “The combination of a strong RVO for 2022, restoration of illegally waived volume from 2016, and a new direction for the SRE program puts the RFS program on solid footing for the future. We thank Administrator Regan and President Biden for honoring their commitments to implement the RFS in a way that is fair, transparent, and focused on growth.”

Cooper also noted that today’s package couldn’t have come at a more important time, as consumers are facing record high gas prices driven by instability in global energy markets. “By requiring petroleum refiners to blend larger volumes of low-cost biofuels like ethanol, today’s actions will put downward pressure on gas prices and provide economic relief to American families facing record high pump prices,” he said. “In the last few days alone, wholesale ethanol prices have been as much as $1.30 per gallon lower than gasoline, leading to significant savings at the pump for consumers of ethanol-blended fuels like E10, E15, and E85.”

RFA released an explainer documenting how ethanol reduces prices at the pump, due to its lower cost and the fact that it augments the overall fuel supply.

Cooper says they are disappointed with the EPA’s decision to reopen and retroactively lower RFS requirements for 2020, which they believe is entirely unnecessary. “The RVO already includes a self-correcting mechanism that caused actual renewable fuel volume requirements to adjust lower when COVID led to reduced gasoline and diesel consumption. In addition, EPA has consistently acknowledged in the past that it lacks the authority to go back in time and reopen annual RVOs that have already been finalized and implemented.”

Listen to Cooper’s comments on the EPA announcement and also USDA’s announcement that COVID recovery payments for biofuels producers for losses incurred in 2020 are finally going out to producers.
RFA CEO Geoff Cooper (7:32)

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

EPA Finalizes RFS Rules

Cindy Zimmerman

The Environmental Protection Agency finalized a package of actions Friday setting biofuel volumes for the Renewable Fuel Standard (RFS) program for years 2020, 2021, and 2022, and introducing regulatory changes intended to enhance the program’s objectives.

EPA also established a 250-million-gallon “supplemental obligation” to the volumes finalized for 2022 and stated its intent to add another 250 million gallons in 2023, to address the remand of the 2014-2016 annual rule by the DC Circuit Court of Appeals in Americans for Clean Energy v. EPA.

To promote efficiency and opportunity in producing biofuels, this action also establishes a regulatory framework that allows biointermediates to be included in the RFS program, while ensuring environmental and programmatic safeguards are in place.

According to the Renewable Fuels Association, the final regulatory actions taken by EPA “bring certainty back to the Renewable Fuel Standard and pave the way for future growth in the production and use of low-carbon renewable fuels”, and will lead to lower gas prices and greater energy security. However, RFA President and CEO Geoff Cooper says they are disappointed with the EPA’s decision to reopen and retroactively lower RFS requirements for 2020, which they believe is entirely unnecessary.

American Coalition for Ethanol (ACE) CEO Brian Jennings agreed. “While we strongly object to the unnecessary retrospective cut EPA is making to 2020 volumes, we are pleased the Agency is upwardly revising the 2021 volumes to align more closely with actual consumption and upholding base conventional volume of 15 billion gallons for 2022, along with 250 million supplemental gallons to address the DC Circuit court order in 2017.”

Clean Fuels Alliance America is pleased the final rule recognizes the continued growth of biodiesel, renewable diesel and other clean fuels and establishes readily achievable program obligations. Vice president of federal affairs Kurt Kovarik says they particularly support EPA’s decision to deny pending small refinery exemptions and its consistent finding that the program benefits Americans without hardships for refiners. “EPA’s denial of pending small refinery exemptions for 2019 through 2021 assures our industry that the volumes set today will be fully met, even with compliance flexibilities. This is an important first step in restoring integrity to the program.”

Kovarik says they encourage the agency to quickly finalize new feedstocks pathways, such as that for canola oil.

ACE, Biodiesel, biofuels, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Provides COVID Payments for Biofuel Producers

Cindy Zimmerman

It was June 15, 2021 when Agriculture Secretary Tom Vilsack announced additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative, which included $700 billion for biofuels producers, for losses incurred in 2020.

Not quite an entire year later, USDA finally made good on that promise today, providing more than $486 million for 62 producers located in “socially vulnerable communities” with a total of more than 100 biofuel producers and 195 facilities.

USDA is making payments to 195 biofuel production facilities to support the maintenance and viability of a significant market for agricultural producers of products such as corn, soybean or biomass that supply biofuel production. These biofuel producers experienced unexpected market losses on a combined 3.7 billion gallons as a result of COVID–19.

For example:

In Iowa, Southwest Renewable Energy LLC is receiving a payment of $3 million. It suffered a market loss on 14.3 million gallons of ethanol due to the pandemic.
In Illinois, Adkins Energy is receiving a $774,000 payment. Its biomass-based diesel production suffered a market loss on almost 3.5 million gallons due to the pandemic.
In Texas, White Energy Holding Company is receiving a $21 million payment for production at two facilities. Its ethanol production suffered a market loss on 98 million gallons due to the pandemic.

The investments USDA is making today will support biofuel producers in California, Colorado, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Nebraska, New York, Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia and Wisconsin.

Ethanol, Ethanol News, USDA