Trade Panel Highlights Barriers for U.S. Ethanol

Cindy Zimmerman

Farmers for Free Trade held a virtual roundtable Thursday to focus on the current trade landscape, the Biden administration’s trade agenda, and how ag exports are critical to workers throughout America.

Among the panelists was Bart Pieper, VP of Global Strategies for Marquis Energy in Hennepin, Illinois, who says exports are increasingly important to the ethanol industry but trade barriers in several markets are stalling growth. “Even though the United States exported about 1.3 billion gallons of ethanol in 2020 and more than 11 million tons of DDG, we continue to face continuous barriers in Asia and in Europe and into Mexico.” He noted China and Brazil as two examples.

Listen to his comments here:
Farmers for Free Trade panel - Bart Pieper, Marquis Energy (2:24)

Audio, Ethanol, Ethanol News, Exports, Trade

Gevo and Axens Partner for Ethanol-to-Jet Technology

Cindy Zimmerman

Gevo, Inc. and Axens North America, Inc. have established a strategic alliance aimed at accelerating the commercialization of sustainable ethanol-to-jet (ETJ) projects in the United States.

As part of the alliance, Axens brings technologies with over 60 related patents; engineering packages; proprietary catalysts; and certain proprietary equipment required to convert ethanol into jet fuel. Axens would also provide process guarantees for commercial ETJ projects. Gevo expects to develop, own, and operate ETJ plants to produce sustainable aviation fuel (SAF), utilizing its expertise in renewable alcohol production and technologies; Net-Zero business model; project financing expertise; customer relationships, and contracts.

It is now possible to make olefins from ethanol and butanol instead of petroleum, so the companies says the same commercially proven technologies can be deployed to make renewable hydrocarbon fuels. “Gevo’s approach makes it possible to decarbonize the ethanol supply chain and thus utilize technologies originally developed and well-proven for fossil-hydrocarbon production to produce renewable, drop-in fuels,” said Axens CEO Jean Sentenac.

The collaboration between Gevo and Axens is expected to allow Gevo to rapidly partner with existing ethanol producers to deploy proven technologies at commercial scales consistent with the airline industry’s sustainability goals.

“We see that there is great potential to convert ethanol into SAF and other hydrocarbons. Additionally, there is synergy with Gevo proprietary isobutanol production technology that is expected to result in unique product blending synergies for producing low-carbon gasoline, SAF, and renewable diesel. We know from our work on the Net-Zero business model that it is possible to drive the fossil-based GHG and related emissions footprint very low or even negative while producing drop-in hydrocarbon fuels like SAF and we think the model can apply to ETJ too,” said Dr. Patrick R. Gruber, Chief Executive Officer of Gevo.

To any ethanol plant owners out there who want to change their game and get into Net-Zero type SAF and hydrocarbons, please give us a call,” continued Dr. Gruber.

aviation biofuels, Ethanol, Ethanol News

New Grants Support RFA Ethanol Safety Training Programs

Cindy Zimmerman

Two grant awards totaling a record $175,000 will help the Renewable Fuels Association (RFA) continue its award-winning ethanol safety programs into the next year. The grants were received via TRANSCAER, a voluntary national outreach effort that focuses on assisting communities to prepare for and respond to a possible hazardous material transportation incident.

A $150,000 grant from the Pipeline and Hazardous Materials Safety Administration’s ALERT program, will fund the creation of two safety videos, including a 20-minute video on “Responding to Ethanol Incidents” that provides the information first responders—and firefighters in particular—need if they are called to an ethanol incident. This grant also includes translating RFA’s ethanol emergency response training package into Spanish. Separately, a $25,000 grant from the Federal Railroad Administration will continue RFA’s training work into the new fiscal year by supporting 10 ethanol emergency response safety training seminars and four train-the-trainer webinars.

“RFA’s efforts over the past decade have helped the ethanol industry achieve an outstanding safety record, and we are excited to continue this important work in 2022 and beyond,” said Missy Ruff, RFA’s Director of Safety and Technical Programs. “RFA’s member companies, their employees, and our partners in the transportation industry are committed to being good neighbors and responsible members of the communities in which we operate. We’re committed to ensuring that ethanol producers, shippers, blenders, and emergency response personnel have the latest and best information regarding the safe handling of ethanol and responding to incidents. We appreciate and value our long-standing partnership with TRANSCAER and other allied organizations. We thank them for awarding these grants and we could not do this important work without them.”

This year more than 1,500 attendees representing 49 U.S. states and 28 other countries were trained through 34 training opportunities supported by RFA. Since 2010, RFA’s safety program has conducted some 350 training events for nearly 14,000 individuals For more information, visit the Ethanol Emergency Response website at www.ethanolresponse.com.

Ethanol, Ethanol News, Renewable Fuels Association, RFA, safety

Biodiesel Conference Scholarships Available

Cindy Zimmerman

University science students with a passion for biodiesel and renewable diesel are invited to apply to the National Biodiesel Board for a scholarship to the 2022 National Biodiesel Conference & Expo to be held Jan. 17 – 20 in Las Vegas.

Students can also apply to present a poster on their biodiesel-related research or outreach projects. A few poster presenters will be invited to present in a live session. In addition to presenting in the poster session and breakout session, opportunities include a preconference biodiesel educational overview and a private mentoring mixer with prominent biodiesel scientists.

The scholarship includes a $600 travel scholarship and complimentary registration (a $1,200 value).

Application deadline is November 15, 2021.

Biodiesel, Biodiesel Conference, NBB

MN Working Toward Clean Fuel Standard

Cindy Zimmerman

Minnesota Governor Tim Walz last week directed state agencies to explore ways to reduce climate change impacts from transportation fuels through a Clean Fuel Standard (CFS) in the state.

The state Departments of Agriculture and Transportation will lead the process to engage a broad cross-section of stakeholders statewide to identify shared goals and opportunities. The agencies will provide a report summarizing the results and recommendations in February 2022. “We have tremendous agricultural and forest resources and potential for renewable energy in Minnesota that could benefit from new market opportunities that a Clean Fuels Standard would bring,” said Department of Agriculture Commissioner Thom Petersen.

American Coalition for Ethanol (ACE) CEO Brian Jennings thanked Governor Walz and the state of Minnesota for moving in the right direction. “A properly crafted CFS will increase the use of E15 and higher blends in the state and reward farmers for climate-smart practices that help reduce the lifecycle greenhouse gas (GHG) emissions of corn ethanol,” said Jennings.

Jennings noted that actions being taken in Minnesota are partly based on the Midwest Clean Fuels Policy Initiative, a diverse coalition of agriculture, environmental, scientific, electric vehicle, and biofuel organizations in support of a technology-neutral and market-based approach to decarbonize transportation fuels. “Rather than having the government pick winners and losers, our coalition supports a portfolio of low carbon fuels, a level playing field, and fair competition for the benefit of all,” Jennings said.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News

Weekly Ethanol Production Jumps

Cindy Zimmerman

Ethanol production recovered to the highest level since July last week, according to EIA data analyzed by the Renewable Fuels Association.

For the week ending October 1, ethanol production vaulted by 64,000 barrels per day (b/d), or 7.0%, to an eight-week high of 978,000 b/d, equivalent to 41.08 million gallons daily. Production was 6.0% above the same week last year, which was affected by the pandemic, and 1.6% above the same week in 2019. The four-week average ethanol production volume increased 1.4% to 938,000 b/d, equivalent to an annualized rate of 14.38 billion gallons (bg).

Ethanol stocks retreated 1.4% to a 19.9 million barrels, the lowest weekly reserves since May. Stocks were 1.3% above the year-ago level but 6.1% below the same week in 2019.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Higher Ethanol Blends Fuel Cancer Research in Nebraska

Cindy Zimmerman

October has been Breast Cancer Awareness Month for over 35 years and this is the fourth year that Nebraska ethanol is helping to Fuel the Cure.

Throughout October, drivers can help Fuel the Cure for breast cancer by filling up with higher blends of ethanol – E15 to flex fuel E85 – at participating locations. Nearly 50 Nebraska gas stations will donate 3 cents for every gallon of higher ethanol blends sold between Oct. 1­‑31 to support cancer research at the Fred & Pamela Buffett Cancer Center in Omaha. Since 2018, Nebraska’s Fuel the Cure campaigns have raised more than $18,000 for cancer research. Find a list of participants at www.fueledbynebraska.com/pink.

Drivers will also be able to identify which retailers are supporting the cause by looking for pink signage at the pump, on the windows and at the counter.

“Through this annual ‘Fuel the Cure’ promotion, we’re helping put an end to cancer through contributions to life-saving research and through the promotion and usage of ethanol,” said Jay Reiners, chairman of the Nebraska Corn Board. The corn board, along with Nebraska Ethanol Board, and Renewable Fuels Nebraska sponsor Fuel the Cure in conjunction with retail stations.

E15, E85, Ethanol, Ethanol News

Ethanol and DDG Exports Up in August

Cindy Zimmerman

August was a better month for exports of U.S. ethanol and distillers grains, according to the latest trade monitor report by Renewable Fuels Association (RFA) senior analyst Ann Lewis.

U.S. ethanol exports in August saw substantial improvement from the prior month’s slump, expanding 56% to 80.48 million gallons (mg). Canada was the top destination for the fifth straight month with imports of 33.9 mg, the largest volume since March (representing 42% of the August U.S. ethanol export market). Given that former key destinations Brazil, China, and India were again nearly absent from the market, the scope of U.S. ethanol exports extended to a broader range of customers than has been the norm. Larger markets included South Korea (9.9 mg, up 86%), the United Kingdom (up fivefold to a two-year high of 6.7 mg), Peru (6.2 mg, up from zero), Nigeria (5.0 mg, up from zero), the Netherlands (4.9 mg, up 22%), and Mexico (4.0 mg, up 83%). Shipments over the first eight months of the year were 796.3 mg, down 10% from the same period in 2020.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—spiked 17% to 1.24 million metric tons (mt). This marks the highest volume of U.S. DDGS exports since Aug. 2015, with much of the growth occurring outside of our largest markets. Exports to Mexico, our top customer for the last eleven months, declined by 18% to a four-month low of 203,666 mt (representing just 16% of all U.S. DDGS shipments in August). DDGS sales to Vietnam jumped 29% to 194,667 mt, its second-largest monthly purchase to date. Exports to Turkey slowed after a large bump in July, down 43% to 86,772 mt. Substantial export volumes also landed in Canada (86,238 mt, up 23% to the largest volume in over a decade), South Korea (79,859 mt, down 10%), Indonesia (64,853 mt, down 3%), China (56,573 mt, up 61% to the largest volume in more than four years), Thailand (55,554 mt, up 153%), and New Zealand (50,000 mt, up from zero). Total DDGS exports through August were 7.73 million mt, which is 10% ahead of last year at this time.

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

REG Joins Iowa State University on Hydrotreater Pilot Plant

Cindy Zimmerman

Renewable Energy Group, Inc. (REG) joined Iowa State University (ISU) this week for a ribbon cutting ceremony at the BioCentury Research Farm (BCRF) to celebrate the start of a new hydrotreater pilot plant.

The hydrotreater pilot plant, the result of a three-year collaboration between REG and the ISU Bioeconomy Institute, will work on how various biomass feedstocks can play a role in the production of renewable fuels with a specific focus on renewable diesel. The pilot plant is a multi-reactor state-of-the-art research and development unit designed by REG’s engineering teams to accelerate the development of new feedstocks and processes. The system is fully automated and configured to run safely and reliably for weeks at a time.

“This project is a result of our longstanding partnership with Iowa State University, and our joint interest in continuing to position the state of Iowa as a hub for innovation and excellence,” said REG President & CEO, Cynthia (CJ) Warner. “As one of the first biodiesel and renewable diesel producers in the nation, innovating is in our DNA, and having the capability to develop additional feedstock options for our industry will help meet the growing demand for cleaner fuels.”

Renewable diesel is a low-carbon cleaner fuel that, through a catalytic process utilizing heat, pressure and hydrogen, known as hydrotreating, can convert feedstocks into a hydrocarbon fuel that is chemically similar to traditional diesel. Research at this new hydrotreater pilot plant will support REG’s Geismar, Louisiana renewable diesel plant by helping to evaluate new low-carbon feedstocks and optimize production of renewable diesel and sustainable aviation fuel (SAF).

Biodiesel, renewable diesel

Sen. Thune Criticizes Democrat Agenda

Cindy Zimmerman

Sen. John Thune (R-SD) spoke out on the Senate floor this week about Democrat policies that he says are harmful to farmers and ranchers.

“For starters, I’m worried that Democrats’ bill could mean the end of some family farms thanks to the bill’s expansion of the death tax,” said Thune. “Death should not be a taxable event.”

Sen. Thune also criticized Democrats for focusing on electric vehicles at the expense of biofuels when it comes to climate policy and manipulating farm policy.

“Democrats have picked their preferred winner in the clean energy stakes – electric vehicles,” Thune said. “Biofuels take a back seat in Democrats’ legislation, despite the essential role they have played in making American energy cleaner – and despite the significance of biofuels to the rural economy.”

Sen. John Thune (R-SD) floor speech (7:50)

Audio, biofuels, Ethanol, Ethanol News, Government