ACE Elects 2021 Executive Committee

Cindy Zimmerman

New president of the board for ACE Dave Sovereign

During its first quarter meeting this week, the American Coalition for Ethanol (ACE) Board of Directors elected its Officers and Executive Committee for 2021.

Dave Sovereign, Chairman of Golden Grain Energy’s Board, accepted the nomination of President of the ACE Board. He replaces Duane Kristensen, who served as the President of ACE’s Board of Directors for the past three years.

“I’m looking forward to lending my perspective as an Iowa farmer who’s served on the boards of two Iowa ethanol plants in this leadership position on the ACE board,” Sovereign said. In addition to Golden Grain Energy’s Board, which oversees a locally owned 120 million-gallon-per-year (MGY) ethanol plant in Mason City, Iowa, Sovereign also serves on the Absolute Energy board in St. Ansgar, Iowa.

Troy Knecht, South Dakota farmer, representing Redfield Energy, who will serve as Vice President of the ACE Board. Ron Alverson, serving as Treasurer of the ACE Board of Directors, represents Dakota Ethanol in South Dakota. Chris Wilson, General Manager of Mid-Missouri Energy is Secretary of the ACE Board.

Newly elected to serve on the 2021 Executive Committee are:
Chris Studer, Chief Member and Public Relations Officer for East River Electric Power Cooperative, and John Christianson, Director of Christianson PLLP, an accounting and business consulting firm for Ag and Renewable Energy.

ACE, Ethanol, Ethanol News

NEC Panel to Discuss Ethanol’s Role in Future Autos

Cindy Zimmerman

With all the buzz about electric vehicles and ideas that the combustion engine is on the way out, where does ethanol fit in the future picture of automobiles?

That question will be addressed next week at the digital 2021 National Ethanol Conference during one of several panels on hot topics in the industry. Renewable Fuels Association Vice President of Industry Relations Robert White will moderate the discussion with guests Michael Berube, Acting Deputy Assistant Secretary for Transportation, U.S. Department of Energy Office of Energy Efficiency and Renewable Energy; Stefan Unnasch, Managing Director, Life Cycle Associates, LLC; and Dan Gaspar, Manager, Pacific Northwest National Laboratory.

In this interview, White talks about why this topic is so important right now and some of the ways low carbon, high octane ethanol can play a role in an electrified future.
2021 NEC Interview with Robert White, RFA 8:12

Registration is still open for the all digital 2021 NEC, coming up February 16-18. Find out more about the conference at NationalEthanolConference.com.

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

RFA Opposes Extending RFS Compliance Deadlines

Cindy Zimmerman

In a virtual public hearing this week, the Renewable Fuels Association opposed the Environmental Protection Agency’s proposed extension of the 2019 and 2020 Renewable Fuel Standard compliance deadlines, calling it a last minute favor to oil refiners made by former EPA Administrator Andrew Wheeler on his way out the door.

In his testimony, RFA Chief Economist Scott Richman said, “All that this proposal does is to compound problems that the agency itself created under the former administration—the massive and illegal increase in small refinery exemptions and the failure to finalize the 2021 Renewable Volume Obligations by the statutory deadline.”

Richman pointed out how, in the case of the 2019 compliance deadline, EPA is actually seeking an extension of an extension; nearly a year has passed since the original deadline, and refiners are simply seeking to stall the inevitable. EPA’s continued delays have allowed those refiners who did not use a sufficient volume of biofuels to comply with their 2019 standards to instead buy RIN credits at historically low prices.

Richman explains more in this interview.
RFA economist Scott Richman on EPA testimony 4:37

Audio, EPA, Ethanol, Ethanol News, RFA

Commonwealth Agri-Energy Producing High Purity Alcohol

Cindy Zimmerman

Kentucky-based Commonwealth Agri-Energy (CAE) is increasing production of high-purity alcohol that meets and exceeds U.S. Pharmacopeia (USP)-Grade.

General Manager Mick Henderson says CAE undertook a major expansion in 2018 to increase fuel ethanol production to 45 million gallons per year which allowed them to quickly transition a portion of production to higher purity. “When the pandemic came to our door, we quickly realized our plant could be a bio-based sustainable solution for meeting increased sanitization demand. We have been meeting this demand since March 2020 and have been committed ever since to improving our quality,” Henderson said.

While many ethanol producers have ramped up or announced plans to bring new USP-grade production to the market, Henderson said that CAE has focused on markets beyond hand sanitizer, “It’s our ambition to further improve our 190 proof PURE quality to best in class Grain Neutral Spirits (GNS) in the coming months, increase that capacity from 5 to 10 million gallons per year, and do it energy efficiently. This commitment will allow us to diversify into the beverage market in which we are logistically advantaged to be cost competitive. In addition, we are focused on improving our 200-proof product that today meets Food Chemicals Codex (FCC)-Grade and will allow us to meet demand that requires 100% alcohol content.”

CAE has worked alongside their ethanol marketer, Eco-Energy, to sell their high purity alcohol into the market. “Producing a USP-grade product isn’t possible by most producers without a significant investment and long lead time. To witness them reach 5 million gallons per year of USP-grade production by August 2020 was impressive but not surprising knowing the company’s makeup over the last twelve years we have worked together,” said Ryan Strickland, Director of Alliance Marketing at Eco-Energy. “Eco-Energy is excited about the opportunity to grow CAE’s business for these high purity alcohol products. CAE is uniquely located to serve regional demand and we hope this is just the beginning for their evolving business with us,” said Eco-Energy CEO Craig Willis.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Biodiesel Board Hires Director of Communications

Cindy Zimmerman

The National Biodiesel Board has appointed Liz McCune as director of communications.

In this role, McCune will work to craft and share messages on the industry’s plans to move from 3 to 6 billion gallons by 2030, as well as promote the National Biodiesel Board and the members it serves. She is responsible for the development of communication strategies for the team and plans to support the industry through content enhancing the Better, Cleaner, Now message.

McCune comes to NBB from the University of Missouri, where she served as associate director of media relations. McCune has more than a decade of experience working in public relations within the University of Missouri System, serving as a senior information specialist at MU Health Care; chief speechwriter to the president at the UM System; and manager of strategic communications at Missouri University of Science and Technology. Before working for the university, McCune was a reporter and editor at newspapers across the country, including the Florida Times-Union and the Columbia Daily Tribune. During her journalism career, she served a nine-month appointment as a Knight Foundation Editing Fellow at the Missouri School of Journalism.

McCune replaces Kaleb Little, who was named chief executive officer of the Kansas Soybean Association and administrator of the Kansas Soybean Commission in December.

Biodiesel, NBB, renewable diesel

Senators Reintroduce Biofuels Infrastructure Bill

Cindy Zimmerman

Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) this week reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.

The Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over 5 years for infrastructure grants for fuel retailers and direct the Administrator of the Environmental Protection Agency (EPA) to finalize a proposed rule to repeal E15 labeling requirements warning drivers about E15’s potential impact on cars, which may confuse and deter drivers from using E15, a blend of gasoline with 15 percent ethanol. The bill would also direct the EPA Administrator to finalize provisions from the same proposed rule to allow certain existing Underground Storage Tanks (UST) to store higher blends of ethanol.

“If enacted, this legislation would greatly expand the availability of low-carbon renewable fuels like ethanol in the marketplace, resulting in cleaner air, lower fuel prices and a more vibrant rural economy,” said
Renewable Fuels Association President and CEO Geoff Cooper. “This legislation would ensure that overly restrictive provisions are streamlined or removed, allowing small businesses across the nation to provide cleaner and more affordable options to American drivers.”

American Coalition for Ethanol (ACE) CEO Brian Jennings thanked the senators for “demonstrating the kind of bipartisan leadership necessary to ensure biofuels play a leading role in helping the U.S. achieve net-zero emissions by mid century.”

“While electric vehicles (EVs) are getting a lot of attention lately, experts conclude EVs alone will fail to reach President Biden’s goal of net-zero emissions in the U.S. by 2050, and that increased use of biofuels will be required to help address the emissions gap,” said Jennings. “This vital legislation would ensure infrastructure parity for biofuels and EVs and help ethanol continue to be part of the solution to climate change.”

ACE, Biodiesel, biofuels, Ethanol, Ethanol News

Biofuels Impact on Iowa Economy Still Strong

Cindy Zimmerman

A new study finds last year’s many challenges reduced the positive impact of biofuels on the Iowa economy, but the production of ethanol and biodiesel still accounts for nearly $4 billion in state GDP.

The study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association (IRFA), found the state biofuels industry also supports 37,000 direct and indirect jobs, and boosts Iowa household income by $1.8 billion. Overall, the impact of biofuels on Iowa’s economy was down 20-25 percent from 2019.

In 2020 Iowa biodiesel production increased slightly, but the COVID-19 pandemic, trade disputes, and Renewable Fuel Standard exemption abuse led to ethanol production decreasing by half a billion gallons compared to the previous year.

“Biofuels still provide a major boost to Iowa’s economy, but quite frankly, the report is a wake-up call to redouble our efforts at the state level,” said IRFA Executive Director Monte Shaw. “Midwestern states like Iowa must be aggressive to drive local demand for biofuels in a meaningful way, thereby providing a sturdy market foundation, even as we supply the rest of the United States and markets around the world. IRFA will continue to work with Gov. Kim Reynolds and the Iowa Legislature to improve our biofuels policies and programs.”

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA

Senators Ask EPA to Take Action on RFS Issues

Cindy Zimmerman

U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA), along with more than a dozen others, sent a letter this week asking the Environmental Protection Agency to take immediate action on Renewable Fuel Standard (RFS) related issues. Those issues include reviewing small refinery waivers, issuing a proposed rule for the 2021 Renewable Volume Obligation, and advancing the proposed E15 streamlining proposal. The letter was sent to Acting Administrator of the Environmental Protection Agency (EPA) Jane Nishida and copied to administrator nominee Michael Regan.

Hours before the inauguration, former EPA Administrator Andrew Wheeler took action to exempt three unidentified oil refineries from their 2018 and 2019 RFS obligations under the Clean Air Act. These exemptions betrayed earlier assertions made by the Trump administration that the EPA would not grant or deny additional waivers pending the resolution of ongoing litigation over the use of the small refinery waiver authority. In January 2021, the U.S. Court of Appeals for the Tenth Circuit found that EPA had “grossly exceeded” its authority by granting certain small refinery exemptions. As this litigation continues, the Senators asked Acting Administrator Nishida to review the three waivers issued by Mr. Wheeler and, should they be deemed unacceptable, immediately reverse them.

“Fortunately, on January 21, 2021, the U.S. Court of Appeals for the D.C. Circuit…ordered an administrative stay of the three exemptions pending further order by the court. The order granting a stay…provides you a timely opportunity to carefully review the three midnight waivers and examine the previous administration’s flawed approach to adjudicating waiver petitions. We urge you to take advantage of this opportunity,” the Senators wrote.

Biodiesel, EPA, Ethanol, Ethanol News

Ethanol Exports were Bright Spot in 2020

Cindy Zimmerman

U.S. ethanol exports were the bright spot in an otherwise dark 2020 for the industry.

According to the Renewable Fuels Association, ethanol exports totaled 1.33 billion gallons in 2020, down 9 percent from 2019 and the lowest volume since 2016, according to official government statistics released today. Still, the annual volume was the fourth-highest on record and nearly one out of every 10 gallons of U.S. ethanol produced last year was exported.

“COVID-19 and protectionist trade barriers created enormous headwinds for ethanol in the international market in 2020,” said RFA President and CEO Geoff Cooper. “But the U.S. ethanol industry again rose to the challenge and supplied more than 1.3 billion gallons of clean, green renewable fuel to customers across the globe. American ethanol continues to play a crucial role in helping nations around the world reduce consumer fuel costs, cut harmful tailpipe pollution, and meet decarbonization commitments under the Paris climate agreement. We are especially encouraged to see that China finally re-entered the market in December, importing nearly 13 million gallons of U.S. ethanol. We enter 2021 on solid footing and the industry is optimistic about the prospects for meaningful growth in ethanol exports.”

Canada remained as the top market during 2020, receiving 326 million gallons, or almost one-quarter of the total. Shipments to Canada in 2020 were only 1.5 percent lower than the volumes exported there in 2019. Brazil received 200 million gallons of U.S. ethanol in 2020, down 40 percent from 2019 due to constant uncertainty surrounding import tariffs. India was the third-leading market, with 190 million gallons. While overall export volumes were down from 2019 levels, shipments to several key markets increased. India, the European Union, Mexico, and Nigeria all imported more U.S. ethanol in 2020 than in 2019.

The RFA will release its annual statistical reports detailing U.S. exports of ethanol and distillers grains next week.

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

AFBF Economist Sees Challenges for Ethanol Industry

Cindy Zimmerman

The ethanol industry is continuing to feel the impact of COVID-19 as the pandemic enters a second year of global disruption.

American Farm Bureau Federation chief economist John Newton, speaking Thursday at the virtual 57th annual Crop Insurance and Reinsurance Bureau Annual meeting, said ethanol production has taken a major hit in the last year. “From the beginning of 2020 through the last few weeks, we’re now two billion gallons less of ethanol production compared to prior year levels,” said Newton. “As of last week we probably still had 10 or 12 ethanol facilities around the country that are idle.”

Asked if the push for green energy under the Biden Administration might help ethanol, Newton said there will be challenges competing with electric vehicles. “We’re not going to go to electric vehicles overnight, so there’s a role for ethanol and biofuels to play there,” said Newton. “But, certainly on the long horizon I do see some challenges on the biofuels front.”

Listen to Newton’s comments here:
2021 CIRB presentation - John Newton, AFBF 3:28

2021 CIRB Annual Meeting Photo Album

AFBF, Audio, biofuels, Ethanol, Ethanol News