Biofuel Supporters Beg Biden for Higher Blends

Cindy Zimmerman

As gas prices continue to skyrocket in response to the ongoing Russia-Ukraine crisis, six farm and biofuel organizations wrote to President Biden Friday urging his administration to use existing authority to allow for the year-round sale of gasoline blended with up to 15 percent ethanol (E15).

In a letter to the White House, the Renewable Fuels Association, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union and National Sorghum Producers explained that an immediate move to restore year-round sales of E15 can ease the impact of oil market disruptions and surging gas prices caused by Russia’s invasion of Ukraine.

“As American families continue to confront skyrocketing gas prices, we write today to urge the Administration to take a simple action that can provide immediate relief at the pump while simultaneously reducing carbon emissions from the transportation sector,” wrote the organizations. “Specifically, we request that the Administration use its authority to authorize the year-round sale of gasoline blended with up to 15 percent ethanol (E15) in response to surging oil prices and expected fuel supply disruptions caused by Russia’s invasion of Ukraine.

“As Russia’s harmful actions in Ukraine continue and further sanctions are potentially imposed against Russia, oil prices will likely continue to rise, creating still higher consumer costs and threatening U.S. energy and economic security. Expanding the volume of American-made ethanol in the U.S. fuel supply can help alleviate these issues, as ethanol is currently priced 70-80 cents per gallon lower than gasoline. And, by displacing imported petroleum, increased ethanol use will enhance U.S. energy security and independence, while reducing emissions and supporting America’s farmers and rural economies.”

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

UN Advisor Tells EPA Ethanol Reduces GHG Emissions

Cindy Zimmerman

EPA hosted a virtual public workshop on biofuel greenhouse gas (GHG) modeling last week and heard from a number of experts, including Reid Detchon, Senior Advisor for Climate Solutions for the United Nations Foundation, who urged EPA to “stop dwelling on uncertainties in greenhouse gas (GHG) modeling and accept the extensive work that has already been conducted by the federal government.”

“Argonne National Laboratory has refined its greenhouse gas lifecycle analysis of fuels now over many years,” said Detchon. “Today’s discussion has underscored the value of this tool, which is the clear gold standard in the field. EPA should immediately incorporate the updated GREET findings into its own analyses and rulemakings.”

Detchon and others argued that the carbon sequestration value of corn has been misrepresented by numerous studies in the past, despite NASA satellite imaging showing that the Corn Belt is a carbon sink and EPA’s own GHG Inventory Report showing the positive impact of corn on organic soil carbon. He said the land use effect of corn ethanol may well be positive in some cases if it is given credit for increasing soil carbon.

Detchon is a member of the Clean Fuels Development Coalition Advisory Committee, which has been urging EPA to adopt the Argonne GREET (Greenhouse Gas, Regulated Emissions and Energy Use in Transportation) model and not be influenced by studies based on counterfactual hypotheticals like the National Wildlife Federation’s flawed analysis released last month.

CFDC Executive Director Doug Durante said, “EPA stated that the information gathered as part of this workshop will be used to inform a range of current and future actions. These are critical times as we grapple with energy, health, and environmental issues surrounding the fuels we use. As Mr. Detchon said, policy should be based on what we know, and we know the full life-cycle analysis of corn ethanol tells a different story than what has been portrayed. EPA should rely on the work of U.S. government experts, recognize the value of corn ethanol, and clear the pathway for increased biofuel use.”

corn, EPA, Ethanol, Ethanol News

Iowa Biofuel Supporters Rally at Capitol for Access Bill

Cindy Zimmerman

Over 200 Iowa biofuels supporters rallied at the Iowa State Capitol rotunda Wednesday to show support for the Iowa Biofuels Access Bill. The bill, proposed by Governor Kim Reynolds, would increase consumer access to higher biofuel blends including 20% biodiesel (B20) and E15 ethanol, as well as increasing infrastructure cost share for retailers.

Iowa Biodiesel Board executive director Grant Kimberley said the state legislators heard directly from farmers and other supporters about how important biofuels are to the state’s economy and their livelihoods. “We need this legislation to lift up this vital industry and keep it thriving. Our country is at the beginning of an energy transformation, mostly driven by other states and also large corporations calling for low-carbon fuel. Iowa’s answer to that call is biodiesel. If we want our state to participate in and capture the economic benefits of this new shift, we need to prioritize smart policy.”

The bill passed the Iowa House last month by a strong bipartisan vote of 82 to 10 and is now pending in the Iowa Senate. Members of the Iowa Renewable Fuels Association, Iowa Corn Growers Association, and Iowa Soybean Association gathered to encourage the Senate to pass the bill.

advanced biofuels, Biodiesel, biofuels

ACE Scholarship Program Recognizes 2021 Winners

Cindy Zimmerman

Allison Sahr, Zachary Baker, Kaelyn Drury

The American Coalition for Ethanol (ACE) is proud to recognize its 2021 scholarship recipients and open the 2022 Scholarship Program for application submission.

The 2021 scholarship winners are:
Allison Sahr of Madison, South Dakota is pursuing a degree in Nursing at the University of South Dakota. Her family is affiliated with ACE voting member East River Electric Power Cooperative, Inc. of Madison, South Dakota.

Zachary Baker of Winslow, Illinois is pursuing a degree in Aerospace Engineering at the University of Illinois. His family has been affiliated with ACE ethanol producer member Adkins Energy LLC in Lena, Illinois.

Kaelyn Drury of Blue Hill, Nebraska, is attending the University of Nebraska-Lincoln in Lincoln, Nebraska, where she studies Nutrition Science. Her family is affiliated with ACE ethanol producer member Chief Ethanol Fuels.

Each student received a $1,000 scholarship through the program to help further their collegiate education. The ACE Scholarship Program was initiated in 2004, and ACE has since awarded $62,000. Scholarships are made available to employees and dependents of employees and shareholders of ACE ethanol producer, voting and associate member companies and organizations.

Applications for the 2022 scholarship program are now being accepted. The deadline is April 12, 2022.

ACE, Ethanol, Ethanol News

Biofuels Response to SOTU is Energy Solution

Cindy Zimmerman

Biofuels advocates offered a response to President Joe Biden’s first State of the Union address this week – use more ethanol.

Acknowledging that the situation in Ukraine was causing pain at the pump here at home, President Biden’s solution was more oil. “I can announce the United States has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. America will lead that effort, releasing 30 million barrels of our own Strategic Petroleum Reserve.”

In a joint statement Wednesday, the Advanced Biofuels Business Council, American Farm Bureau Federation, Clean Fuels Alliance America, Growth Energy, National Farmers Union, and Renewable Fuels Association called on the president to unleash the power of ethanol.

“American-made biofuels are the only abundant, affordable, homegrown alternative to oil that can immediately extend the domestic supply of liquid fuels…Ethanol is trading at a steep discount compared to unblended gasoline, often 50 to 60 cents per gallon, and consumers are driving out of their way every day to capture the extra 15 cents or more per gallon savings on higher blends like E15.”

Iowa Governor Kim Reynolds pointed out the importance of biofuels in her Republican SOTU response. “We’re fighting to restore America’s energy independence, including biofuels.”

“While we appreciate President Biden’s appeal to ‘buy American,’ it is disappointing the State of the Union address did not highlight how increasing the use of American-made ethanol is a cost-effective and low-carbon solution to simultaneously address urgent pocketbook, energy security, and climate concerns facing the U.S.,” said American Coalition for Ethanol (ACE) CEO Brian Jennings.

Renewable Fuels Association (RFA) president and CEO Geoff Cooper wrote a response to the SOTU on the RFA Blog that echoes his State of the Industry address last week at the National Ethanol Conference. “More ethanol could easily be blended simply by the Biden administration supporting and allowing for year-round availability of E15. In fact, our nation’s ethanol producers currently have enough excess production capacity to supply enough ethanol to entirely replace equivalently the amount of crude oil the U.S. currently imports from Russia.”

In addition to maintaining market access for E15, ethanol industry leaders urge the administration to get the Renewable Fuel Standard back on track by denying all pending Small Refinery Exemptions and issuing strong renewable volume obligations (RVOs) for 2020, 2021 and 2022.

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

EIA Data Confirm Record Ethanol Blend Rate in 2021

Cindy Zimmerman

The latest data from the U.S. Energy Information Administration show that ethanol set a record for its share of America’s gasoline in 2021, averaging 10.34 percent of every gallon sold. The final EIA data for 2021 also confirmed a significant rebound in both ethanol production and consumption after COVID-related shutdowns in 2020.

Renewable Fuels Association President and CEO Geoff Cooper said the data underscore the resilience of the U.S. ethanol industry and highlight the fact that the so-called “E10 blend wall” continues to crumble.

“Ethanol’s share of our nation’s gasoline continues to rise, as consumers are increasingly drawn to lower-cost, lower-carbon options like E15 and E85,” Cooper said. “Based on the EIA data, we estimate that 600-700 million gallons of ethanol were consumed in blends other than E10, proving that the oil industry’s so-called ‘blend wall’ is nothing but a figment of their imagination. As war in eastern Europe destabilizes global petroleum markets and crude oil prices continue to rise, our nation’s leaders should be taking steps to increase the use of cleaner-burning, homegrown ethanol. We have enough unused production capacity in the ethanol industry to entirely replace U.S. crude oil imports from Russia.”

Cooper touched on many of these themes in his State of the Industry address and press availability at last week’s National Ethanol Conference.

NEC22 RFA CEO Geoff Cooper Industry address (29:16)
NEC22 RFA CEO Geoff Cooper press conference (23:57)

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

Volkswagen Researching Ethanol-Based Fuel Cells

Cindy Zimmerman

Volkswagen has a vision for how ethanol can help achieve net-zero carbon emissions by 2050 or sooner, which includes research on reforming ethanol to create hydrogen for fuel cells.

“It’s not about technology, it’s about what you put as fuel into the car,” said Pablo Di Si, Executive Chairman, Volkswagen Latin America, during an address at the National Ethanol Conference last week. “We’re going to need solar, we’re going to need water, we’re going to need biofuels, we’re going to need ethanol. The more sources for renewable energy we have, the better off we’re going to be.”

Di Si says Volkswagen is doing research and development on “how we can form ethanol into a fuel cell or how can we make batteries out of (sugarcane) bagasse.”

Listen to Di Si’s address to the NEC here:
NEC22 Pablo Di Si, Volkswagen (22:57)

advanced biofuels, Audio, Car Makers, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

Ethanol Industry Sets Sights on the Sky

Cindy Zimmerman

Sustainable aviation fuel is getting to be known by the ethanol industry as just “SAF” as it is being seen as a major opportunity for ethanol.

The 2022 National Ethanol Conference devoted a whole panel to the subject, including two SAF producers, Gevo and LanzaJet, which are using ethanol derived from crop residue and waste sources by Alcohol-to-Jet processing.

“Ethanol for us is a fantastic building block,” said Lanzajet CEO Jimmy Samartzis. “We’ve been developing and commercializing our technology since 2010. In 2018 we received approval for the pathway for ethanol to jet.”

Gevo’s Tim Cesarek said for them ethanol’s big advantage is that it is available today. “There’s a call to action for product now,” he said. “Utilizing corn to get to sustainable aviation fuel through ethanol routes allows us to get to market and scale quickly in a very cost effective way.”

The NEC panel on SAF also included RFA president and CEO Geoff Cooper as moderator; William Collings, 1898; and Steve Csonka, Commercial Aviation Alternative Fuels Initiative (CAAFI).

NEC22 Sustainable Aviation Fuel panel (1:19:36)

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

Chevron Announces Agreement to Acquire REG

Cindy Zimmerman

Chevron Corporation and Renewable Energy Group, Inc. announced today a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.

The acquisition combines REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position.

“REG was a founder of the renewable fuels industry and has been a leading innovator ever since,” said Chevron Chairman and CEO Mike Wirth. “Together, we can grow more quickly and efficiently than either could on its own.”

The transaction is expected to accelerate progress toward Chevron’s goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After closing of the acquisition, Chevron’s renewable fuels business, Renewable Fuels – REG, will be headquartered in Ames, Iowa. In addition, CJ Warner is expected to join Chevron’s Board of Directors.

“This transaction delivers premium cash value to shareholders and will give us additional resources as we aim to accelerate growth and strengthen our collective ability to deliver the sustainable fuels our customers and the world need,” said CJ Warner, REG president & CEO. “Our employees’ hard work and dedication have built a fantastic renewable fuels company and made this transaction possible. We look forward to joining Chevron’s team.”

The transaction is expected to be accretive to Chevron earnings in the first year after closing and accretive to free cash flow after start-up of REG’s Geismar expansion. The acquisition consideration is 100 percent cash. Total enterprise value of $2.75 billion includes a net cash position around $400 million greater than debt. The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of 2022. The acquisition is subject to REG shareholder approval. It is also subject to regulatory approvals and other customary closing conditions.

Listen to the announcement today from Wirth, Warner, and Pierre Breber, Chevron VP and CFO
Chevron to acquire REG (12:07)

advanced biofuels, Audio, Biodiesel, biofuels, REG, renewable diesel

Ethanol Report on 2022 NEC

Cindy Zimmerman

The 2022 National Ethanol Conference in New Orleans was a success in every way possible. With attendance nearly as strong as the 2020 conference in Houston and a packed agenda spotlighting opportunities for the future, it was obvious that the ethanol industry is ready to move forward.

This edition of The Ethanol Report includes some of the highlights of the 2022 NEC. Hear from Renewable Fuels Association president and CEO Geoff Cooper, Chairperson Jeanne McCaherty of Guardian Energy, EPA Office of Transportation and Air Quality Director Sarah Dunham, lifecycle analysis expert Isaac Emery, Volkswagen Latin America’s Pablo Di Si, author and energy consultant Bob McNally, Secretary of Agriculture Tom Vilsack, Lanzajet CEO Jimmy Samartzis, GEVO Chief Commercial Officer Tim Cesarek, and National Corn Growers Association president Chris Edgington.

Ethanol Report 2-25-22 (18:30)

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.

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