USDA Working on Tracking Carbon Intensity

Cindy Zimmerman

USDA Under Secretary for Farm Production and Conservation Robert Bonnie is confident that sustainable aviation fuels hold great promise for American agriculture if we can get the rules right.

“This is a real opportunity for American agriculture to create a marketplace that will reward them from the for the stewardship they have been doing and the stewardship they are and will be doing,” said Bonnie on Monday at the 10th annual Ag Outlook Forum in Kansas City.

Bonnie says traceability of commodities through the supply chain is important in establishing carbon intensity scores. “In June, you saw a request for information around biofuels from USDA that sought to get responses from the public about creating a system to actually track carbon intensity completely through the supply chain. We think that could be really important for sustainable aviation fuels and biofuels more broadly,” Bonnie said. “We’re convinced that if we get good rules in the US and then if those rules are are similar across the globe, that US agriculture is going to be really, really good at producing sustainable aviation fuels through through low carbon commodities.”

Farmers and ethanol producers are anxiously awaiting guidance for the 45Z clean fuel production tax credit authorized in the Inflation Reduction Act. “As we look to 45 Z, we’ve got to apply provide more flexibility, more crops and more ability to essentially use a menu approach to choosing which climate,” Bonnie said.

USDA is working to implement the Growing Climate Solutions Act which authorizes the establishment of a voluntary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into voluntary environmental credit markets for farmers, ranchers, and private forest landowners.

Listen to Bonnie’s remarks here:
Ag Outlook Forum - USDA Under Secretary Robert Bonnie 25:28

Audio, aviation biofuels, biofuels, Carbon, Ethanol, Ethanol News, SAF

Rep. Finstad Tours Greenfield Global Winnebago

Cindy Zimmerman

L-R: Marcus Jensen and Paul Peters, Greenfield Global Winnebago, Rep. Brad Finstad and Brian Werner, MN Bio-Fuels

Rep. Brad Finstad (R-MN) recently visited ethanol producer Greenfield Global Winnebago to see the investments being made into one of the first dry mill ethanol plants built in Minnesota and discuss the various opportunities for future innovation in the state’s ethanol industry, according to the Minnesota Bio-Fuels Association (MN Bio-Fuels).

During the visit, MN Bio-Fuels and Greenfield Global Winnebago discussed with Finstad the challenges the ethanol industry is currently facing including the lack of a permanent nationwide legislative solution to enable the year-round sale of E15, also known as Unleaded 88.

Finstad is the lead author of legislation to extend the 1-psi Reid Vapor Pressure (RVP) waiver to E15 and allow its year-round, nationwide sale through the Year-Round E15 Act.

Other topics discussed included the implementation of Inflation Reduction Act (IRA) tax credits for low-carbon ethanol including the Clean Fuel Production Credit (45Z) and concerns from producers because official guidance for the 40B SAF tax credit was not released until 17 months after the credit went into effect. Finstad said he has urged the Treasury to remove uncertainties on how renewable fuel producers could qualify for the credits.

Ethanol, Ethanol News

USGC Leads Ethanol Exploratory Mission to China

Cindy Zimmerman

Ringneck Energy CEO Walter Wendland (third from right) at National Energy Administration (NEA) in Beijing

Representatives from the U.S. Grains Council (USGC) and the ethanol industry headed to China last month for an exploratory mission aimed at gaining critical insights into the country’s ethanol market and policy landscape.

Ringneck Energy CEO and USGC Ethanol Advisory Team member Walter Wendland was part of the mission. “China’s domestic ethanol industry coupled with supportive policies can play a key role in global biofuel expansion. By fostering stronger ties and cooperation, both countries can benefit from enhanced energy security and sustainability,” said Wendland. “As the U.S. ethanol industry continues to grow, a well-developed ethanol market in China will help pave the way for future win-win opportunities.”

Wendland joined Council staff based in its Beijing, China office to engage with various industry, academic and governmental stakeholders to deepen the understanding of China’s ethanol market, technology advancements and ongoing bilateral collaboration in renewable energy and biofuels. A highlight of the mission was a meeting with the National Energy Administration (NEA), China’s primary policymaker for renewable energy and biofuels sectors. During the meeting, the Council’s team shared updates on recent advancements in the U.S. ethanol industry, including supportive policies under the Inflation Reduction Act, and the growing global focus on biofuels and sustainable aviation fuel (SAF).

China announced its plan for a nationwide E10 mandate in 2017 by 2020, which was unofficially suspended in late 2020, leading to decreased blending rates in pilot regions. If China were to fully implement a national E10 program, it would require approximately five billion gallons of fuel ethanol, indicating significant market potential.

Ethanol, Ethanol News, Exports, International, USGC

Candidates Reveal Biofuel Stands in FB Survey

Cindy Zimmerman

The American Farm Bureau Federation asked Vice President Kamala Harris and former President Donald Trump about their priorities for American agriculture in a questionnaire that included their opinions on renewable fuels.

Farm Bureau asked the question, “As president, would you support an all-of-the-above strategy that encourages the domestic production and use of all available forms of energy?”

The Harris-Walz campaign response:
Vice President Harris cast the deciding vote to pass the Inflation Reduction Act, which provided nearly $10 billion for rural renewable energy infrastructure—and made the largest investment in rural electrification in nearly 90 years. This historic legislation also included more than $2 billion in investments for the Rural Energy for America program, which provides loans and grants to agricultural producers and rural small businesses to build renewable energy systems or to make energy efficiency improvements. The Inflation Reduction Act is also increasing domestic biofuels, boosting high-quality job opportunities across rural America and enlisting agriculture as a pivotal tool to fight climate change.

Former President Trump’s response:
Yes, a Trump Administration will increase domestic energy production across the board, streamline permitting, and end market-distorting restrictions on Oil, Natural Gas, and Coal. I will lower energy prices even below the record lows achieved during my first term. No president has ever fought harder for our farmers than I did. I issued a rule declaring that E15 would be made available all year round. In addition, I dramatically increased the number of fueling stations where E15 could be sold across the country, by letting them use the existing pumps. I will cancel every Kamala-Biden policy that is brutalizing our farmers. We won’t just increase Ethanol production in our own country, we will make it our mission to export ethanol all over the world.

Other topics on the questionnaire included crop insurance, taxes, labor, regulatory reform, international trade, sustainability, and biotechnology.

AFBF, Ag group, biofuels, Ethanol, Ethanol News

Gevo to Acquire Red Trail Energy Assets in North Dakota

Cindy Zimmerman

Net-zero hydrocarbon fuels leader Gevo this week announced the acquisition of the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy in North Dakota for $210 million.

In a conference call announcing the acquisition, Gevo CEO Dr. Patrick Gruber said it will provide an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota. “It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation,” said Gruber. “Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota.”

“We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS,” said Gevo President and COO, Dr. Chris Ryan. “We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.”

The transaction is expected to close by the first quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy’s equity holders and the procurement of financing for the acquisition. Gevo expects to finance the transaction with a combination of asset level debt and cash from the balance sheet.

Listen to Gruber and Ryan announce the acquisition on the conference call.
Gevo announces Red Trail acquisition (7:38)

Audio, aviation biofuels, Carbon, carbon capture, Ethanol, Ethanol News, SAF

Farm Foundation Forum Discusses Biofuel Policy

Cindy Zimmerman

Rod Snyder and Kip Tom

While the Kamala Harris/Donald Trump debate took the spotlight this week, Farm Foundation hosted a forum on Monday that focused more specifically on the farm policy of each party’s candidate.

Moderated by Kristina Peterson with The Wall Street Journal, The Agricultural Platforms of the Candidates for President of the United States featured Kip Tom, Farmers and Ranchers for Trump Coalition, for the Republican platform, while the Democratic platform was advocated for by Rod Snyder, former Senior Advisor for Agriculture for EPA in the Biden-Harris Administration. Topics covered included the farm bill, agricultural trade, environmental policy, farm labor and immigration, and biofuels policy.

Snyder, who recently stepped down from his position with EPA, says the Biden-Harris administration committed to getting the Renewable Fuel Standard back on track. “We made good on that,” said Snyder. “The administration finalized the largest ever volumes in the history of the program across all categories, including 15 billion gallons of conventional ethanol.”

He also pointed to the tax credits in the Inflation Reduction Act for Sustainable Aviation Fuel. “If we can continue to look for new markets, even if on-road liquid fuels plateau, there are still future opportunities for farmers as long as the government can help come alongside and be a partner in that work,” said Snyder.

Tom, an Indiana farmer who served as US Ambassador to the United Nations Agencies for Food and Agriculture under President Trump, stressed the importance of the ethanol industry to corn farmers like himself and the need for higher blends. “I’ll tell you, the biofuels industry has revitalized rural America,” said Tom. “But the reality is we need E15, probably E20, maybe even E30. A lot of vehicles can burn this today, but the electric vehicle mandates have been been pretty substantially hurting the industry.”

The two-hour discussion at the National Press Club also included questions from the audience and it is well worth watching. Watch the whole forum here.

Listen to opening statements and specific comments on biofuels here:
Farm Foundation forum opening statements (18:57)
Farm Foundation forum biofuels policy comments (3:43)

Audio, aviation biofuels, biofuels, Ethanol, Ethanol News, Farm Foundation

Registration Open for 2025 Clean Fuels Conference

Cindy Zimmerman

Registration is now open for the 2025 Clean Fuels Conference, Jan. 20-23 at the Hilton San Diego Bayfront Hotel in San Diego, California.

Hosted by Clean Fuels Alliance America for the biodiesel, renewable diesel and sustainable aviation fuel industries, this year’s conference theme, “Accelerate”, captures the rapid growth and transformative progress of the clean fuels industry. “With the clean fuels industry accelerating at an unprecedented pace, this conference is crucial for anyone involved in shaping the future of heavy-duty transportation,” said Clean Fuels CEO Donnell Rehagen.

The Clean Fuels Conference will feature keynote presentations from Lucas Lentsch, CEO of the United Soybean Board; Beth Whited, President of Union Pacific; and Dr. Steven Cliff, Executive Officer of the California Air Resources Board, among others. In addition to exhibitors and multiple networking events, the conference agenda also offers educational sessions designed to enhance industry knowledge and equip participants for success in an ever-evolving landscape.

The deadline for early bird pricing is November 18, 2024. For more details on registration, agenda and lodging, visit CleanFuelsConference.org.

advanced biofuels, aviation biofuels, Biodiesel, Biodiesel Conference, Clean Fuels Alliance, renewable diesel, SAF

ACE Announces Scholarship Program 2024 Winners

Cindy Zimmerman

L to R; Mallory Moorman, Elsie Ennis, Delaney Frahm

The American Coalition for Ethanol (ACE) is pleased to congratulate its 2024 scholarship recipients Mallory Moorman, Elsie Ennis and Delaney Frahm. Each student receives a $1,000 scholarship through ACE’s Scholarship Program to help further their collegiate education.

Mallory Moorman is from Glenvil, Nebraska, and is attending the University of Nebraska – Omaha, in Omaha, Nebraska, where she studies Chemistry with a concentration in Medicinal Chemistry and a minor in Biology. Mallory was a member of Future Business Leaders of America, National Honor Society and Nebraska Leadership Seminar. Mallory is the daughter of Matthew Moorman. Her father is affiliated with ACE ethanol producer member Chief Ethanol Fuels in Hastings, Nebraska.

Elsie Ennis is from Shullsburg, Wisconsin, and is attending the University of Wisconsin – Madison, in Madison, Wisconsin, where she studies Biology. Elsie was a member of FFA, National Honor Society, and was a Class Officer in high school. Elsie is the granddaughter of Jim Leitzinger. Her grandfather is affiliated with ACE ethanol producer member Badger State Ethanol in Monroe, Wisconsin.

Delaney Frahm is from Elmwood, Nebraska, and is pursuing a degree in Business Administration at the University of Nebraska – Lincoln in Lincoln, Nebraska. Delaney was a member of Future Business Leaders of America and was on the varsity volleyball, basketball and track teams in high school. Delaney is the daughter of Kathy Frahm. Her mother is affiliated with ACE associate member, CoBank, in Elkhorn, Nebraska.

The ACE Scholarship Program was started in 2004, and has since awarded $71,000 in scholarships to employees and dependents of employees and shareholders of ACE Ethanol Producer, Voting and Associate member companies and organizations. Applications for 2025 scholarships will open next spring. For those interested in making a financial contribution to the program, contact Anna Carpenter at acarpenter@ethanol.org or 605-306-6142.

ACE, Education, Ethanol

Diverse Groups Join to Oppose EPA’s Tailpipe Standards

Cindy Zimmerman

More than 55 parties representing diverse interests joined to submit a detailed brief to the D.C. Circuit Court of Appeals last week arguing that the Environmental Protection Agency “unlawfully exceeded its statutory authority and acted arbitrarily and capriciously by finalizing vehicle tailpipe emissions standards that would essentially phase out liquid-fueled engines and mandate increased production of electric vehicles.”

The brief filed Friday was submitted by the Renewable Fuels Association, National Farmers Union, American Farm Bureau Federation, National Association of Convenience Stores, 14 state and national corn grower associations, as well as auto dealers, trucking and shipping company organizations, manufacturing groups, energy trade associations, and other parties.

“The Court should reverse EPA’s rule,” according to the petitioners’ brief, which notes that EPA projects at least 68 percent of new vehicles will need to be electric to comply with the standards by 2032. “EPA seeks to radically transform the nation’s vehicle fleet by effectively mandating a nationwide transition from internal-combustion-engine vehicles to electric vehicles. That bold assertion of regulatory power vastly exceeds EPA’s statutory authority. The Clean Air Act does not clearly authorize EPA to force Americans to buy electric vehicles.”

The brief also holds that EPA “…unreasonably treats electric vehicles as though they contribute zero emissions…” and “…refused to even consider renewable fuels as an alternative to its push for electrification, unreasonably deeming those issues outside the scope of its rule…Higher-octane fuels, biofuels, and flex-fuel vehicles are a documented solution to the issue of pollution from vehicle emissions.” In addition, EPA failed to consider how its tailpipe standards conflict with the Renewable Fuel Standard.

EPA’s response to Friday’s brief is due by November 26.

Meanwhile, Congress may be looking at a legislative way to overturn the tailpipe emissions rule via a Congressional Review Act resolution proposed in May by Rep. John James (R-MI) that would “disapprove” the rule.

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

Ethanol Exports Record High, DDGS Exports Up

Cindy Zimmerman

U.S. ethanol exports have reached a record high of 1.10 billion gallons so far this year through July, running 38% ahead of last year’s pace, according to the latest trade monitor report from the Renewable Fuels Association.

While ethanol exports dropped seven percent in July compared to June, at 136 million gallons that was still significantly higher than a year ago. A mixed market in July saw Canada continued to be the top destination for the 40th consecutive month, accounting for an impressive 46% of all exports. Exports to Colombia increased by 16%, reaching a five-month high while in contrast, India reduced its imports by 23%. Exports to South Korea surged 11-fold, while the European Union dropped to an eight-month low. Additionally, Mexico, Peru, Singapore, and the Philippines experienced significant declines, and Brazil remained absent from the market.

RFA president and CEO Geoff Cooper says the ethanol industry is having a very good year in the international market. “We’re on track to have a record year for ethanol exports somewhere between 1.8 and 2 billion gallons, we think,” said Cooper during an interview at last week’s Farm Progress Show. “That would be the highest share and the largest volume that we’ve ever exported.”

At the same time, U.S. exports of the ethanol co-product dried distillers grains (DDGS) are up 15% compared to last year, at 6.97 million mt as of July, when they jump 16% from the previous month driven by Mexico as the top market, boosting its imports by 23% to a five-month high of 247,903 mt. Shipments hit three year high with significant gains in markets such as South Korea (6%) and the European Union (56%), driven by a 161% rise in sales to Ireland. Cooper says DDGS exports will be highlighted at the upcoming Export Exchange, October 7-9 in Fort Worth, Texas.

“About one out of every three tons of distillers grains we’re producing is exported and we need to continue growing demand internationally for distillers grains,” said Cooper.”

RFA CEO Cooper supply/demand comments (2:17)

Audio, Ethanol, Ethanol News, Export Exchange, Exports, Renewable Fuels Association, RFA