Gevo and ADM Partner to Produce Sustainable Aviation Fuel

Cindy Zimmerman

Gevo, Inc. and ADM have signed a memorandum of understanding (MoU) to support the production of sustainable aviation fuel (SAF) and other low carbon-footprint hydrocarbon fuels.

The MoU contemplates the production of both ethanol and isobutanol that would then be transformed into renewable low carbon-footprint hydrocarbons, including SAF, using Gevo’s processing technology and capabilities. About 900 million gallons of ethanol produced at ADM’s dry mills in Columbus, Nebraska, and Cedar Rapids, Iowa, as well as its Decatur, Illinois, complex, is expected to be processed utilizing this technology, resulting in approximately 500 million gallons of SAF and other renewable hydrocarbons. The isobutanol is expected to be produced at a proposed new facility in Decatur that would employ ADM’s carbon capture and sequestration capabilities.

Demand for SAF is expected to increase as the U.S. and the EU have set goals that together would support almost 4 billion gallons of annual SAF production in 2030, and more than 45 billion by 2050. The companies will determine full commercialization plans with the intent that production of SAF can begin in the 2025-2026 timeframe.

aviation biofuels, Ethanol, Ethanol News

GoodFuels and REG Partner for Marine Biofuels

Cindy Zimmerman

Marine biofuels provider GoodFuels is teaming up with Renewable Energy Group, Inc. for the supply and development of sustainable marine biofuel solutions for the global shipping industry.

With REG’s expertise in biofuels and GoodFuels’ pioneering strengths, both companies are playing an important role in enabling the decarbonization efforts for shipping companies. This announcement reinforces GoodFuels’ mission to become the favored green fuel supplier for all shipping segments, and ambition to scale up the production of advanced marine biofuels in the right way using sustainable feedstocks. For REG, the agreement is a clear signal of the company’s mission to enable a cleaner world and reduce greenhouse gas emissions.

GoodFuels Chief Operating Officer Bart Hellings said, “At GoodFuels, we collaborate with impact-driven partners to advance sustainable shipping with our instant decarbonization solution. Our sustainable marine biofuels are in a prime position to deliver on immediate-term climate goals, and are one of the only options available on the market today. We have been closely working with REG for several years, and we foresee a great future together in accelerating the energy transition within shipping.”

Both companies will continue to expand the development and delivery of advanced biofuels for the international shipping industry.

Biodiesel, biofuels, REG

Feenstra Bills Would Study EV Costs, Biojet Fuel Options

Cindy Zimmerman

Rep. Randy Feenstra (R-IA) has introduced legislation in the U.S. House of Representatives that would explore ways the federal government could use biofuels to reduce transportation costs while lowering carbon emissions. The Comparison of Sustainable Transportation (COST) Act and the Biojet Fuel Research Act “aim to help consumers and taxpayers save money while also bolstering demand for corn, soybeans, and biofuels,” according to Rep. Feenstra.

“Especially as fuel prices continue to skyrocket, I am eager to explore ways biofuels can be utilized to reduce costs — including ways to save tax dollars within the federal government. We should not be so quick to jump to electric vehicles when E85 flex-fuel could provide an even cheaper and cleaner option. Further, the administration has repeatedly expressed interest in sustainable aviation fuel, and I will continue working to ensure biofuels are included in those discussions.”

The COST Act directs the Comptroller General and the Secretary of Energy to compare the financial and environmental costs of replacing federal government gasoline-powered vehicles with electric vehicles or E85 capable flex-fuel vehicles. The bill then requires the Secretary of Energy to report findings to the Committee on Science, Space, and Technology.

The Biojet Fuel Research Act directs the Federal Aviation Administration (FAA) to establish a working group focused on identifying research and development needs to produce biojet fuel. The working group would consist of the Bioenergy Technologies Office of the Department of Energy, the Department of Agriculture, biorefinery stakeholders, agriculture research universities, and others.

Feenstra also recently introduced the Biofuel Cell Research Act, a bill to establish a research, development, and demonstration program for a commercially viable fuel cell system that uses biofuels as the main fuel source.

aviation biofuels, Biodiesel, biofuels, corn, Electric Vehicles, Ethanol, Ethanol News

Senators Request White House Meeting to Talk Biofuels

Cindy Zimmerman

Sen. John Thune (R-SD), along with Sen. Chuck Grassley (R-IA) and several Senate colleagues, are requesting a meeting with President Biden and representatives of his cabinet to discuss the Renewable Fuel Standard and promote biofuels as a key solution for America’s energy and climate agenda. The senators made a similar request in July and received no response.

“Mr. President, biofuels are a readily available energy solution that deserve full consideration—not only for helping to stem the recent increase in fuel prices, which has subsequently accelerated inflation—but to serve as a foundational source of transportation emission reductions as part of your energy and environmental agenda,” the senators wrote. “We call on your administration to utilize the full capacity of American agriculture to deliver on both fronts, and we reiterate our request to discuss these matters with you in greater detail.”

Joining Thune and Grassley in signing the letter were Sens. Roy Blunt (R-MO), Jerry Moran (R-KS), Deb Fischer (R-NE), Mike Rounds (R-SD), Joni Ernst (R-IA), Ben Sasse (R-NE) and Roger Marshall (R-KS).

American Coalition for Ethanol (ACE) CEO Brian Jennings thanked the senators for renewing their request to meet with President Biden and discuss the tremendous opportunity that biofuels like ethanol present to contribute to the Administration’s energy, environmental and transportation agenda. “Achieving net-zero emissions by 2050 will be more attainable if we start making progress right now with low carbon ethanol, and we join these Senators in calling on the President to give biofuels his full consideration,” said Jennings.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, RFS

RFA Provides Carbon Reduction Comments to CARB

Cindy Zimmerman

The Renewable Fuels Association (RFA) submitted comments to the California Air Resources Board (CARB) last week stressing that the state’s path toward achieving its carbon reduction targets should be technology-neutral and include a broad array of technologies. RFA also recommended that CARB rely on “more realistic assumptions and feasible scenarios” as it develops its plan to achieve statewide carbon neutrality by 2045 or sooner.

The comments were submitted in response to a CARB workshop on September 30 where the agency laid out possible scenarios for meeting the long-term carbon reduction goals of the California Global Warming Solutions Act of 2006.

“We have learned from the success of California’s LCFS that technology-neutral and inclusive approaches driven by market-based performance standards are the most effective,” wrote RFA Vice President of Regulatory Affairs Kelly Davis. “Developing scenarios can be illustrative but should not be designed in a way to close out known and even unknown technologies that can contribute to meeting carbon neutrality goals.”

Davis also spotlighted the importance of efforts to achieve the greatest reduction of greenhouse gas emissions as soon as possible, and that ethanol can continue to play an important role for California.

“Ethanol blended into California gasoline at ten percent blends has delivered the single largest (35%) source of GHG reductions under the LCFS since its inception in 2011,” she wrote. “Higher blends of low carbon ethanol in the current gasoline pool represent the nearest term and most affordable path for immediate reductions of GHG emissions from the light-duty fleet.”

Read RFA’s comments here.

Carbon, Ethanol, Ethanol News, Renewable Fuels Association, RFA

BioUrja Group to Acquire ADM Peoria Ethanol Complex

Cindy Zimmerman

ADM is selling its Peoria ethanol production complex to BioUrja Group, an energy and agricultural commodity trading and supply group headquartered in Houston, Texas.

“The sale of our Peoria facility is an important element of the strategic review of our dry mill ethanol assets,” said ADM CEO Juan Luciano. “By reducing our ethanol capacity by 135 million gallons and redeploying the resulting capital to other strategic growth investments, we’re continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago. We continue to execute on our strategic priorities, and we are excited about the opportunities ahead of us as we drive sustainable growth.”

BioUrja Group’s Chairman & CEO, Amit Bhandari, remarked that: “As a leading supplier of biofuels, we are excited to enter into the bio-ethanol production sector and become more vertically integrated. We are enthused about the growing beverage-grade and highly-distilled industrial alcohol markets, which are the focus of the Peoria plant, and are glad to absorb supplemental fuel ethanol into our existing supply capabilities. This is an opportunity for us to continue our growth in the renewables sector and participate in the global energy transition. It’s a double bottom-line deal for us because of the strong financial performance of the plant and its contributions to our ESG strategy.”

The deal is expected to close within the coming weeks.

Ethanol, Ethanol News

DC Gets Grant for B100 Biodiesel Project

Cindy Zimmerman

The Greater Washington Region Clean Cities Coalition (GWRCCC) is getting some help toward lower greenhouse gas emissions in the District thanks to a U.S. Environmental Protection Agency (EPA) 2021 Diesel Emissions Reduction Act (DERA) grant.

The Project will retire 14 diesel powered vehicles, replacing them with 12 B100 (100 percent biodiesel) vehicles. This effort is projected to reduce greenhouse gases by 76% (98.3 metric tons); this is the equivalent of remove 21.4 passenger cars or planting 1,625 trees. In addition, this project will reduce harmful particulate matter (known to cause cancer, asthma, and lung-related issues) by 97%. The vehicles will also reduce nitrogen oxides (known to cause low level ozone) by 94% among other harmful air emission.

GWCCC Executive Director Ira Dorfman participated in a Virtual B100 Biodiesel Technology Showcase this week. “It appears that Washington DC has become a hot bed for the utilization of B100,” he said.

GWCCC Executive Director Ira Dorfman (2:01)

The National Biodiesel Foundation and National Biodiesel Board are partners in the project.

Biodiesel, NBB

Ethanol Production Hits Near Record High

Cindy Zimmerman

U.S. ethanol production increased last week to pre-pandemic levels and hit a near-record high, according to EIA data analyzed by the Renewable Fuels Association for the week ending October 15.

Ethanol production increased over six percent last week, or 64,000 barrels per day (b/d), to 1.096 million b/d, equivalent to 46.03 million gallons daily. This is the third-highest volume on record and just 12,000 b/d below the all-time record. Production was 20.0% above the same week last year, which was affected by the pandemic, and 10.0% above the same week in 2019. The four-week average ethanol production volume increased 4.5% to 1.005 million b/d, equivalent to an annualized rate of 15.41 billion gallons (bg).

Ethanol stocks rose 1.2% to 20.1 million barrels. Stocks were 1.8% above the year-ago level but 6.0% below the same week in 2019.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Groups Urge White House to Embrace Biofuels

Cindy Zimmerman

Ten biofuel and farm advocacy organizations are asking President Biden to “swiftly expand access to lower-carbon, lower-cost biofuels as the administration seeks to address the rising cost of fuel.”

In a letter to the White House, rural leaders noted that biofuels hold the power to “insulate consumers from volatile oil markets by extending the fuel supply, much like releasing oil from the Strategic Petroleum Reserve, but with sustainable results.”

“Simply extracting more oil – or importing it from Organization of the Petroleum Exporting Countries (OPEC) – won’t deliver the results you are seeking for consumers or the climate,” warned the Advanced Biofuels Business Council, American Soybean Association, Association of Equipment Manufacturers, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, National Sorghum Producers, Renewable Fuels Association, and Fuels America.

To promote competitive prices while reducing emissions, biofuel and farm advocates also urged regulators to act swiftly on long-awaited biofuel blending requirements under the Renewable Fuel Standard (RFS).

“You can put American motorists first by aggressively pursuing your stated goal of ‘doubling down on the liquid fuels of the future which make agriculture a key part of the solution to climate change.’ On the cusp of COP-26, this is an opportunity to show that the United States is serious about embracing new, cleaner solutions to age-old challenges,” they added.

Biodiesel, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Registration Open for 2022 National Ethanol Conference

Cindy Zimmerman

Registration is now open for the Renewable Fuels Association 27th annual National Ethanol Conference, to be held in New Orleans Feb. 21-23, 2022.

RFA Board Chairperson Jeanne McCaherty, CEO of Guardian Energy, says the theme for 2022 is “Zeroing In on New Opportunities” and the bright future of the U.S. low-carbon ethanol industry.

“As much as the U.S. ethanol industry has been challenged the past few years, it’s easy to be optimistic about our future—and the 2022 theme puts these coming opportunities in the spotlight,” McCaherty said. “RFA’s member companies are focused on decarbonization, innovation, and developing new markets for ethanol and other co-products. These opportunities and many others will be on full display in New Orleans. We have much to share and much to learn from each other, and the National Ethanol Conference remains the top opportunity for networking and moving our industry forward.”

Early bird registration provides substantial discounts until Nov. 30. For more information and to register, visit http://www.NationalEthanolConference.com.

Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA