USDA Offers More Biofuels Infrastructure Grants

Cindy Zimmerman

The U.S Department of Agriculture has announced another round of funding for its successful Higher Blends Infrastructure Incentive Program, or HBIIP. Approximately $22 million is being made available for retailers to add higher ethanol blends like E15 and E85.

The application window will be open for 30 days starting December 21 and ending January 19. Ethanol organizations are offering help to retailers in the application process. Awards to successful applicants will be in the form of cost-share grants for up to 50 percent of total eligible project costs, but not to exceed $3 million.

The Renewable Fuels Association is urging retailers to act quickly.

“We are very proud of our earlier work that helped fuel retailers across the country successfully apply for and receive funding under the HBIIP grant program, and the RFA staff is ready to roll up its sleeves again to help retailers tap into the remaining funds available,” said RFA President and CEO Geoff Cooper.

American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty hopes this new round provides a second chance for retailers who got started during the original 90-day time frame but couldn’t complete their grant applications before that window closed.

“We got feedback on the application process from marketers we worked with saying it took too long to gather the information they needed and get the ‘registrations’ they had to complete before they could even apply,” Lamberty said. “Those things are required to do business with the government, and most retailers weren’t expecting that.”

Click here for information about USDA’s HBIIP program.

ACE, biofuels, Ethanol, Ethanol News, RFA

Brazil Tariff Decision ‘Devastating’ For US Ethanol

Cindy Zimmerman

Brazil’s decision to impose a 20 percent tariff on all U.S. ethanol imports is devastating for the U.S. ethanol industry, according to organizations that work to promote ethanol exports.

The leadership of the Renewable Fuels Association, U.S. Grains Council, Growth Energy, and the National Corn Growers Association say the action jeopardizes the future of cooperation and coordination between the U.S and Brazil and “marks a dramatic turn in our bilateral trade relationship.”

“Today, Brazilian ethanol receives unfettered access into the U.S. market, while U.S. producers are denied reciprocal market access due to a restrictive import tariff designed solely to make U.S. product less competitive. This unjust imbalance must be addressed. We urge the incoming Biden Administration to respond with strength, leveraging various U.S. government tools and authorities to make it clear that protectionist barriers are unacceptable. However, it seems clear from today’s decision that Brazil is more focused on keeping U.S. ethanol out of Brazil than true two-way trade.”

American Coalition for Ethanol (ACE) CEO Brian Jennings added. “One of the most urgent priorities for USTR nominee Katherine Tai will be to sit down with her Brazilian counterparts to try and negotiate a much better outcome. Sanity must be restored to Brazil’s protectionist policy toward ethanol trade.”

Since May, U.S. exports to Brazil have fallen to less than 4 million gallons. Over the same time period, Brazil has exported nearly 96 million gallons of fuel ethanol to the United States.

RFA President and CEO Geoff Cooper says the tariff will have an immediate impact on U.S. ethanol exports. “Brazil has been our top market in the past few years and if this tariff remains in place we certainly expect that to change,” said Cooper.

RFA CEO Comments on Brazil ethanol tariff (1:26)

ACE, Audio, Brazil, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, Trade

RFA Gives Ethanol Industry Update

Cindy Zimmerman

RFA LogoAs Congress continues to negotiate a new COVID-19 aid package, the pandemic continues to batter the U.S. ethanol industry and the Renewable Fuels Association (RFA) wants lawmakers to know the challenges producers are facing.

With losses from the pandemic nearing $4 billion, the ethanol industry continues to fight for implementation of the Tenth Circuit Court decision nationwide, and prepares to enter the new year with the uncertainty of having no Renewable Volume Obligations set for 2021.

Added to all of this, Brazil made the decision this week to impose a 20 percent tariff on all U.S. ethanol imports.

RFA held a press conference to provide an update on these issues and more with:
Geoff Cooper, RFA President and CEO
Scott Richman, RFA Chief Economist
Jeanne McCaherty, RFA Chairperson
Erik Huschitt, RFA Vice Chairman

Listen to opening comments from each:
RFA Ethanol Industry Update (27:15)

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

Biofuels Included in Ag Talks Roadmap for Trade

Cindy Zimmerman

Farmers for Free Trade held a virtual press conference Tuesday to release a new report on the challenges and solutions for American agriculture on trade, supply chains and global competitiveness. The report is the culmination of a series of Ag Talk discussions across rural America and includes recommendations to drive demand for U.S. agricultural products at home and abroad.

Recommendations in the report for biofuels include legislation establishing a low-carbon octane standard, such as one proposed by the National Corn Growers Association (NCGA), to improve fuel efficiency and reduce emissions. NCGA chair and Iowa farmer Kevin Ross says other countries have the same need. “From an environmental footprint standpoint across the globe, we think we can help in a whole lot of air quality issues that we’ve seen improved in the U.S.,” said Ross. “Ethanol’s got a bright future, not just here in the U.S. but across the globe.”

Audio – Ag Talks report ethanol - Kevin Ross, NCGA (2:55)

Ag group, Audio, corn, Ethanol, Ethanol News, Exports, Trade

Ethanol Report 12-15-20

Cindy Zimmerman

A new analysis released by the Renewable Fuels Association shows the devastating impact COVID-19 pandemic restrictions continue to have on ethanol producers, with losses nearing $4 billion.

RFA Chief Economist Scott Richman authored the white paper which shows ethanol production dropped by two billion gallons between March and November this year, which meant a 700-million-bushel decline in the use of corn for ethanol. He stressed that while this report looks at a one time period, the effects of the pandemic will continue for a long time to come.

In this edition of the Ethanol Report, Richman talks about the damage done to the ethanol industry this year and what the future might hold.

Ethanol Report 12-15-20 (21:36)

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.

Choose an option to subscribe

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

Novozymes Offers New Enzyme Solution for Ethanol

Cindy Zimmerman

Novozymes has launched a new bioenergy enzyme solution to increase oil and ethanol yields by utilizing previously untapped potential in corn conversion.

Fortiva Hemi “brings novel enzymes to liquefaction that enable unmatched substrate conversion to deliver the highest corn oil and ethanol yields possible. Effective across the broadest pH and temperature ranges, it is also the most flexible liquefaction solution available to ethanol producers.”

Novozymes officials say Fortive Hemi creates “the opportunity for more than 10% corn oil yield increase and up to 1% additional ethanol yield, enhancing profit in a difficult fuel ethanol market.”

Fuel ethanol plants have previously only been able to achieve on average 40% efficiency in extracting available corn oil, but greater than 95% efficiency in converting starch to ethanol. Fortiva Hemi acts upon the fiber matrix during liquefaction, creating the potential for improved fat and starch conversion that lead to oil and ethanol yield previously inaccessible. This newly freed substrate is then converted using Novozymes’ highest yielding enzyme blends to once again improve ethanol production efficiency.

Learn more from Novozymes.

Ethanol, Ethanol News, Novozymes

Wisconsin Governor Pledges Aid for Ethanol Plants

Cindy Zimmerman

Wisconsin Gov. Tony Evers last week announced that up to $3.25 million of federal Coronavirus, Aid, Relief, and Economic Security (CARES) Act funding will be made available to Wisconsin’s nine ethanol producers to help offset some of the significant losses experienced by the industry earlier in the COVID-19 pandemic.

“I appreciate the efforts of Wisconsin’s ethanol industry to pivot and respond to the challenges presented by COVID-19,” said Gov. Evers. “Ethanol production is extremely important to a number of supply chains in our state and will be especially critical as we finalize and implement our vaccine distribution plans. I’m proud to support our state’s ethanol producers and continue our commitment to innovation in biofuels.”

In addition to producing a renewable source of fuel, ethanol plants in Wisconsin help drive demand for high-value corn crops, which provide the raw material for ethanol production. Additionally, carbon dioxide (CO2), one of the byproducts of ethanol production, is a critical component of food and beverage packaging and the creation of dry ice.

“Wisconsin’s ethanol producers greatly appreciate Governor Evers’ support. We commend the Governor for his leadership and support for Wisconsin’s farmers and our industry,” added President of the Wisconsin BioFuels Association Erik Huschitt. “We are proud of the ways our state’s ethanol plants have adapted in order to keep running during COVID-19. These grants will be extremely helpful as we continue our important work.”

Ethanol, Ethanol News

California Ethanol + Power Finalizes Deal With CHS

Cindy Zimmerman

California Ethanol + Power last week awarded a 15-year contract to CHS Inc. to market and sell the 68 million gallons of Essential Ethanol to be produced annually by the Sugar Valley Energy campus located in California’s Imperial Valley. Minnesota-based CHS is the number one farmer cooperative in the country and one of the nation’s largest suppliers of ethanol-enhanced gasoline and retailers of E85 ethanol.

Sugar Valley Energy will be a 160-acre multi-plant campus consisting of sugarcane-to-ethanol, sugarcane to low-carbon power plus biomethane and wastewater treatment facilities. Once production reaches full capacity, Sugar Valley Energy is designed to produce 68 million gallons of ultra-low carbon, fuel-grade sugarcane ethanol each year. This Essential Ethanol will be mixed with gasoline for cleaner burning fuel.

Construction financing for Sugar Valley Energy is expected to be in place in the new year, with groundbreaking getting underway soon. Ethanol production is set to begin in 2023.

Ethanol, Ethanol News

Ethanol Industry Needs Support as COVID Losses Rise

Cindy Zimmerman

As COVID-19 cases rise and travel is being limited again, the consumption of ethanol-blended gasoline is on the decline again. In the first week of December, consumption of both gasoline and ethanol fell to their lowest points since May, according to data from the Energy Information Administration.

According to a new analysis by the Renewable Fuels Association, ethanol industry losses this year due to the pandemic hit $3.8 billion by the end of November. As a result of reduced travel and lower fuel demand, ethanol producers cut production by 2 billion gallons between March and November, and cuts are expected to continue into 2021.

“As Congress debates another COVID-19 relief package, we implore policymakers to consider the devastating economic impact the pandemic has had on renewable fuel producers,” said RFA President and CEO Geoff Cooper. “Our new analysis provides an in-depth look at how rural communities have suffered. The decrease in ethanol production has idled or permanently closed plants across the heartland and caused job losses in rural communities where good employment is often hard to find. As an industry deemed critical and essential to America, we call on Congress to act swiftly to provide some targeted relief to our nation’s renewable fuels industry.”

Whether Congress will get a bill passed before the end of the year remains in question. Lawmakers in both the Senate and the House were negotiating a number of possible deals last week, but have not come to an agreement.

Ethanol, Ethanol News, RFA

Biofuels Groups Pleased with Vilsack Nomination

Cindy Zimmerman

Tom Vilsack has officially been nominated to serve as Secretary of Agriculture in the Biden Administration, reprising the role he held under President Obama for eight years, and the biofuels industry is quite happy with that decision.

Renewable Fuels Association President and CEO Geoff Cooper says Vilsack is an excellent choice. “We are especially happy to have someone in the Biden administration who intimately understands the crucial role renewable fuels and agriculture can play in confronting climate change. We thank the president-elect and look forward to working once again with the new secretary once he takes office.”

During his time as Secretary, Vilsack frequently attended the major agricultural and biofuels events, including the National Ethanol Conference, National Biodiesel Conference, Commodity Classic, ACE Annual Meeting, and the Iowa Renewable Fuels Summit.

American Coalition for Ethanol (ACE) CEO Brian Jennings says Vilsack will be able to hit the ground running. “Secretary Vilsack was the most effective advocate the biofuels industry had in the Obama administration and we are excited about working with him again, particularly with helping get the RFS back on track, continued infrastructure support for higher ethanol blends, and making sure farmers and biofuel producers are part of the solution to future policies designed to tackle climate change.”

National Corn Growers Association President John Linder says corn farmers always appreciated Vilsack’s “willingness to listen to the input from growers across the country and his steadfast commitment to agriculture, renewable fuels, our environment and USDA’s food and nutrition programs.”

Iowa RFA Executive Director Monte Shaw says, as an Iowan, Vilsack knows first-hand the importance of a strong biofuels industry. “He has stood up for the RFS and expanded exports. And Secretary Vilsack has created innovative solutions like the Biofuels Infrastructure Program that really began the growth of E15 availability.”

National Biodiesel Board VP of Federal Affairs Kurt Kovarik says Tom Vilsack has a long and distinguished record of advocating for America’s farmers and biofuel producers and they look forward to “continuing a strong, productive relationship with USDA to expand markets and infrastructure for biodiesel.” Iowa Biodiesel Board Executive Director Grant Kimberley adds, “In particular, we look forward to Vilsack’s steady voice as he interacts with new leadership at the Environmental Protection Agency. We know we can count on him to help get the RFS back on track, and reinforce the benefits of growing biodiesel demand.”

ACE, Biodiesel, corn, Ethanol, Ethanol News, Iowa RFA, NBB, NCGA, RFA, USDA