REG and Booster Partner for Sustainable Fuels Delivery

Cindy Zimmerman

Renewable Energy Group (REG) has announced a partnership with Booster, a tech-enabled energy delivery service, to provide mobile delivery of renewable diesel, biodiesel and blended fuels to fleets. The service started in California in August and has the potential to grow nationally.

The Booster / REG collaboration makes low-carbon fuels more accessible to clients, with convenient mobile fueling services provided by Booster. As businesses and fleets look for more sustainable solutions, REG’s bio-based diesel is easy to adopt and immediately begins reducing fossil carbon emissions. Under the new partnership, REG UltraClean Blend™ and other renewable and biodiesel fuels will be delivered to customers via Booster’s proprietary trucks, last-mile technology platform and certified drivers.

“This new service will let companies seamlessly transition their fleets to much lower-emission fuels with no equipment or infrastructure costs,” said Frank Mycroft, CEO and co-founder, Booster. “Our partnership with REG will provide fleet operators with an ‘easy button’ to solve their sustainability, energy reliability and operational efficiency needs. Combining Booster and REG capabilities also offers fleet managers the data and intelligence required to meet increasingly ambitious environmental standards and business optimization targets.”

As part of the partnership, REG will be an exclusive supplier of bio-based diesel to Booster, and has become an investor in the company. Booster will also be an exclusive mobile fueler to REG and will partner with REG to explore expansion opportunities together.

Learn more.

Biodiesel, biofuels, REG, renewable diesel

Elite Octane Ethanol Plant Receives USDA Grant

Cindy Zimmerman

Elite Octane president Nick Bowdish shows Axne and Torres Small around the plant

Congresswoman Cindy Axne and USDA Under Secretary of Agriculture for Rural Development Xochitl Torres Small visited the Elite Octane dry-mill ethanol plant in Atlantic, Iowa this week to announce a $250,000 energy efficiency grant funded by the Rural Energy for America Program (REAP).

The REAP grant will be used by Elite Octane to install a Dryer Exhaust Energy Recovery (DEER) system, which will capture and reuse the energy from the plant’s dryer – allowing the plant to recapture and use 89 million kilowatt hours per year, enough electricity to power close to 6,000 homes. The DEER system is projected by USDA to save the Atlantic plant more than $1.2 million a year in energy costs.

The Build Back Better Act, which Rep. Axne has been helping craft in the House, allocates an additional $2 billion in funding for REAP grants.

The updated draft text of the Build Back Better Act also includes $1 billion in funding for USDA to provide grants over the next 10 years to expand biofuel pump infrastructure, upgrade existing tanks and pumps, and increase usage of higher blends of ethanol and biodiesel.

Biodiesel, Ethanol, Ethanol News, USDA

U.S. Ethanol and DDGS Exports Down in September

Cindy Zimmerman

U.S. ethanol exports were down six percent in September with most of the 76 million gallons going to just two countries, according to the latest analysis by the Renewable Fuels Association (RFA).

Canada remained the top destination for U.S. ethanol exports for the sixth straight month with imports of 36.2 mg, up 7%. This marks the largest monthly shipments to cross the border in over three years and accounts for nearly half (48%) of the September U.S. ethanol export market. Exports to South Korea jumped 81% to a five-month high of 17.9 mg (accounting for 24% of September exports). Mexico (4.8 mg, +20%), Peru (4.7 mg, -24%), and the United Kingdom (4.1 mg, -38%) were other larger customers. Once again, former key destinations Brazil, China, and India were nearly absent from the market. Shipments over the first nine months of the year were 872.2 mg, down 10% from the same period in 2020.

The U.S. imported 12.9 mg of undenatured ethanol from Brazil, the largest monthly volume to enter our borders this year.

RFA reports that exports of dried distillers grains (DDGS) were down 31% in September to a seven-month low of 853,751 metric tons (mt) after hitting a six-year high in August. Five countries accounted for two-thirds of total DDGS exports in September.

Exports to Mexico, our top customer for the last year, declined by 22% to 159,658 mt (representing 19% of all shipments in September). U.S. DDGS sales to Vietnam scaled back by 40% to 116,725 mt. Exports to South Korea perked up by 35% to 108,086 mt, a high for the year. Canada imported 93,449 mt DDGS, up 8% for the largest volume in over a decade. Shipments also increased to Indonesia, up 6% to 68,724 mt. Additionally, substantial volumes landed in China (49,977 mt, -12%), Turkey (28,489 mt, -67% to a 17-month low), Ireland (28,038 mt, +51%), New Zealand (22,000 mt, -56%), and Spain (19,378 mt, -54%). Total DDGS exports through September were 8.59 million mt, which is 5% ahead of last year at this time.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

New Podcast Compares Corn Ethanol with Carbon Markets

Cindy Zimmerman

“Corn Saves America” is the captivating title of the second installation of the podcast series from AEI Premium, the online community for agricultural decision makers.

The new podcast explores agriculture’s role in environmental solutions, comparing and contrasting the rise of corn ethanol with today’s carbon markets.

This season, hosts Sarah Mock, Brent Gloy, and David Widmar are back, along with a team of carbon and ethanol experts, investors, and farmers. Together, they will unpack how corn-based fuel united farmers, energy companies, and environmentalists to transform markets and eventually became a political flashpoint. And do their best to answer a big question: are carbon markets on a similar trajectory?

“The old adage ‘history doesn’t repeat itself but it often rhymes’ is useful to consider during times of uncertainty, including today,” said AEI Premium co-founder and “Escaping 1980” co-host David Widmar. ”Our podcast shares lessons learned from the corn ethanol boom era to help strategic agriculture professionals better navigate what lies ahead for carbon markets in 2021.”

“Corn Saves America” builds on themes from AEI’s first podcast, “Escaping 1980.” Episodes are available to stream now at aei.ag/season2 and cornsavesamerica.com, along with additional reading about the topics discussed on the show. “Corn Saves America” is available for download on iTunes, Spotify, or wherever you listen to podcasts. Listeners can connect with AEI Premium on Twitter and Facebook to provide feedback.

Carbon, corn, Ethanol, Ethanol News, Podcasting

Ethanol Industry Applauds EPA SRE Denial

Cindy Zimmerman

One down, 65 to go.

Ethanol supporters were pleased Friday to see the U.S. Environmental Protection Agency deny one small refinery exemption (SRE) petition that had been filed for the 2019 compliance year.

“We are greatly encouraged by EPA’s decision to deny this bailout request from an oil refinery that has continually attempted to dodge its legal obligations to blend low-carbon renewable fuels,” said Renewable Fuels Association President and CEO Geoff Cooper. “Our industry lost more than 4 billion gallons of demand due to the previous administration’s rampant abuse of the SRE program, and we are pleased to see that the days of EPA-induced demand destruction appear to be behind us.”

However, Cooper notes that 65 exemption petitions are still pending, according to the EPA dashboard and this is only the first SRE denial decision by EPA under the Biden administration. The agency has reversed three exemptions granted by the previous administration, and 15 pending SRE petitions have been withdrawn.

EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS

USDA Secretary Vilsack from COP26

Cindy Zimmerman

Agriculture Secretary Tom Vilsack had a busy week at COP26 last week, participating in numerous events to underscore the administration’s commitment to climate action.

Vilsack held a media call Friday afternoon from COP26 in Glasgow, UK. He discussed COP26 events, the recently-announced partnership with the EU and the Agriculture Innovation Mission (AIM) for Climate.

Taking questions from reporters, Vilsack also commented on trade issues, importance of the Build Back Better act, “climate smart commodities,” methane emissions and livestock, biofuels talk at COP26, CSAF timeline now that comment period has ended, and where USDA is on federal vaccine mandate with deadlines this month. Today is the second dose deadline for Moderna and Pfizer vaccine and first (only) dose deadline for Johnson and Johnson, and federal employees are required to be fully vaccinated by November 22.

Vilsack media call from COP26 (25:33)

Audio, biofuels, Climate Change, Ethanol, Ethanol News, USDA

16th Iowa Renewable Fuels Summit

Cindy Zimmerman

Registration is open for the 16th Iowa Renewable Fuels Summit, which is returning to an in-person format.

“We look forward to welcoming friends and colleagues from across the biofuels sector as we meet in person again to dig into what is on the horizon for American ethanol and biodiesel,” said IRFA Marketing Director Lisa Coffelt. “Whether you’re new to biofuels or have been around since the beginning, there is something for everyone at the Summit.”

The 2022 Iowa Renewable Fuels Summit is taking place on January 25, 2022 in Des Moines, Iowa. Registration is free and required to attend.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA

Midwest Governors Call for E-15 solution

Cindy Zimmerman

Seven Midwestern state Governors have sent a joint letter to EPA Administrator Michael Regan requesting immediate guidance on how they can continue to sell 15 percent ethanol-blended fuel (E15) year-round without restriction. Iowa Governor Kim Reynolds spearheaded the letter which was also signed by the governors of Nebraska, North Dakota, Minnesota, Missouri, South Dakota, and Wisconsin.

The governors’ letter follows a recent D.C. Circuit Court decision that overturned EPA’s 2019 regulation allowing the year-round sale of E15 in conventional gasoline markets. The governors seek guidance from the agency on how best to pursue a specific provision of the Clean Air Act that allows states to establish a “level playing field” for E15.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” the letter states. “Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and state governments have invested hundreds of millions of dollars in recent years to expand consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision threaten to strand these public and private investments, but it also jeopardizes the progress we’ve made toward cleaning up our fuel supply and reducing emissions from transportation.”

Renewable Fuels Association President and CEO Geoff Cooper said, “Ethanol producers and farmers stand with these governors, and we will leave no stone unturned in our pursuit of an open and competitive marketplace for E15 and other lower-cost, lower-carbon ethanol blends. We encourage EPA to expeditiously respond to the governors and open the dialog needed to remove the outdated and absurd regulatory barrier to summertime sales of E15 in these states.”

RFA notes that Kansas Gov. Laura Kelly sent a similar letter to EPA in recent weeks. “This bloc of eight contiguous states consumes approximately 13 billion gallons of gasoline annually. A universal move from E10 to E15 across these states would expand ethanol consumption by nearly 700 million gallons and boost corn demand by 225 million bushels.”

The governors proposed solution to the EPA under the Clean Air Act is a section that states “upon the request from the Governor of a State, the Administrator shall apply volatility limitations to gasoline-ethanol blends that exclude the benefit of the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver provided to E10.” Their understanding is that “such a request would result in a volatility limitation of 9 psi for both E10 and E15 in conventional gasoline areas, thereby establishing a level playing field and allowing retailers to use the same gasoline blendstock for both blends all year long.”

“Since 2019, E15 adoption at retail sites has rapidly expanded and extending the 1-psi RVP waiver to E15 only makes sense to reflect the realities of today’s motor fuel market and year-over-year track record of successful growth,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “Losing E15 sales next summer would harm everyone through even higher pump prices and greenhouse gas and tailpipe emissions.”

“ACE stands by these Governors as they pursue all options to ensure E15, a clean and safe fuel with lower RVP emissions than E10 and straight gasoline, can still be sold next summer, and urges EPA to respond to this request in a timely manner,” Jennings said.

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

Ethanol Production Just Shy of Record High

Cindy Zimmerman

U.S. ethanol production finished the week of October 29 just shy of the all-time record 1.108 million b/d produced the week ending Dec. 1, 2017.

According to EIA data analyzed by the Renewable Fuels Association ethanol production edged higher by 2,000 barrels per day (b/d), or 0.1%, to 1.107 million b/d, or 46.49 million gallons daily. Production was 15.2% above the same week last year, which was affected by the pandemic, and 9.2% above the same week in 2019. The four-week average ethanol production volume increased 3.0% to 1.085 million b/d, equivalent to an annualized rate of 16.63 billion gallons (bg).

Ethanol stocks grew 1.0% to 20.1 million barrels, 2.3% above the year-ago level but 8.0% lower than the same week in 2019. Imports were back to zero for the week.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Biodiesel and Soybean Groups Dispute Soy Oil Concerns

Cindy Zimmerman

Soybean and biodiesel organizations say there is plenty of soy oil to serve all needs, despite some claims to the contrary.

With the food supply chain being impacted by a variety of issues, some food industry groups are claiming foodservice cannot get enough edible oil for cooking because oil is being diverted to biodiesel and a burgeoning renewable diesel market.

American Soybean Association CEO Stephen Censky says 86 million acres of soybeans are currently being harvested and a projected record 4.4 billion bushels. “Likewise, processors are gearing up to process more soy and assure adequate soy oil is available for food, feed and fuel: At least seven new oilseed processing plants are under development, and soybean oil production by the domestic processing industry is projected by USDA to reach a record level this year—on top of a 26% growth in supply over the last 10 years,” said Censky.

Donnell Rehagen, CEO of the National Biodiesel Board said, “Biodiesel and renewable diesel production consistently support 13% of the value of every U.S. soybean bushel. Sustainable growth in our industry is also supporting new investments in domestic soybean crush capacity, which will translate into additional value for U.S. farmers and rural economies. A misguided attack on the Renewable Fuel Standard will simply undercut a valuable, stable market for the record harvest that soybean growers are achieving this year.”

Both NBB and ASA also have concerns that blaming inflationary pressures impacting the food and agriculture sector across all cost categories on renewable fuels expansion could affect support of the Renewable Fuel Standard. More than a dozen agriculture groups recently sent a letter to the White House identifying the key supply issues affecting agriculture and related industries as being labor, barge shipments, ports and shipping containers, trucking and rail freight, fertilizer, chemical inputs, energy, equipment and parts, and water availability.

Biodiesel, NBB, Soybeans