Farmer Leaders Call Out EPA for Biofuels Demand Destruction

Cindy Zimmerman

In the wake of new plant closures, corn and soybean farmer organization leaders held a press conference Thursday to discuss the current situation in the biofuels industry created by the Environmental Protection Agency’s (EPA) overuse of Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS).

Participants in the call were:
Kelly Nieuwenhuis, farmer from Primghar, Iowa and president of the board at Siouxland Energy
John Linder, farmer in Edison, Ohio, incoming first vice president of the National Corn Growers Association
Ron Heck, a soybean farmer in Perry, Iowa, Secretary of the National Biodiesel Board
Daryl Haack, a corn farmer in Primghar, Iowa, member of the board of Little Sioux Corn Processors

The four farmers were united in their call for President Trump to intervene with EPA to get them back on track and reallocate gallons lost to SREs. Listen here:

Farmer leaders biofuels presser
Audio, Biodiesel, biofuels, corn, Ethanol, Ethanol News

Japan Deal is Good for Grains and Ethanol

Cindy Zimmerman

The U.S.-Japan trade agreement signed by President Donald Trump this week “will solidify our longstanding partnership for the future and create a platform for growth into new sales and new sectors, including the potential for sales of U.S. ethanol,” according to the U.S. Grains Council (USGC)

Japan is one of the largest and most loyal U.S. corn customers, having bought more than $2 billion of U.S. corn in the most recent marketing year. It is an important market for food and feed barley and sorghum. And as a country looking to improve the environmental impact of its fuel, it is an important future market for U.S. ethanol products.

USGC chairman Darren Armstrong, a farmer from North Carolina, was on a grower panel at the BASF Agricultural Solutions Media Event this week and he talked about the impact that trade negotiations have had on farmers over the past two years, but said the Japan agreement and USMCA are bright spots in the picture, and so is ethanol.

“There are so many new markets that we can move ethanol in that would really use up a lot of corn, and that’s what we’re after,” said Armstrong.

This interview with Armstrong was done the day before the Japan deal was signed, but he said they were looking forward to it because Japan has been a good customer in the past and they were hoping to increase ethanol exports under the agreement. He also talks about the potential in China and India for ethanol exports.

Interview with USGC chair and NC farmer Darren Armstrong

BASF Ag Solutions Media Event photos

Audio, BASF, corn, Ethanol, Ethanol News, Exports, USGC

Ethanol to Benefit From Japan Trade Agreement

Cindy Zimmerman

President Donald Trump and Japanese Prime Minister Abe signed a trade deal Wednesday worth billions for U.S. agricultural producers.

Under the market access agreement, Japan will open the market to approximately $7 billion in American agricultural exports, eliminating or significantly lowering tariffs for U.S. beef, pork, poultry, wheat, cheese, wine, certain nuts and berries, cherries, ethanol, and more. “So it’s a tremendous trade deal. It’s a very big trade deal,” said President Trump.

The Japanese Parliament is expected to approve the agreement later this fall and it could be implemented as early as Jan. 1, 2020.

Ethanol, Ethanol News, Exports, Trade

RFA Corrects EPA Chief’s Comments on Ethanol Demand

Cindy Zimmerman

The Renewable Fuels Association (RFA) sent a letter to EPA Administrator Andrew Wheeler this week to correct “several misstatements in testimony offered recently to the House Committee on Science, Space, and Technology” regarding the real impacts of small refinery exemptions (SREs).

Specifically, RFA questioned the accuracy of Administrator Wheeler’s statements in answer to questioning from Rep. Brian Babin (R-TX) that ethanol production and consumption is on the rise, when data from the Department of Energy and EPA itself indicate otherwise. Listen to the exchange:
EPA's Wheeler and Rep. Babin on ethanol and SREs

Wheeler told Rep. Babin, “Ethanol demand has not been impacted by the small refinery program and in fact we’ve seen an uptick in ethanol over the last two years.” RFA says, “In reality, U.S. ethanol consumption has shown a downturn—not an uptick—in the last two years. According to the U.S. Energy Information Administration (EIA), U.S. ethanol consumption was 14.382 billion gallonsin 2018—down from 14.485 billion gallons in 2017.”

Click to read the RFA letter.

Audio, EPA, Ethanol, Ethanol News, RFA

RFA to Lawmakers: Thanks for Letter to EPA

Carrie Muehling

The Renewable Fuels Association (RFA) is applauding lawmakers for support of the Renewable Fuels Standard (RFS).

RFA thanked a bipartisan group of 25 members of the U.S. House of Representatives for asking the U.S. Environmental Protection Agency to prospectively restore RFS volumes lost to small refinery exemptions.

In a letter to EPA Administrator Andrew Wheeler, the House group also asked the Agency to stop the practice of “rubber-stamping” requests for exemptions, and to update its analysis on the benefits of renewable fuels on greenhouse gas emissions, the farm economy, and transportation fuel markets.

“We appreciate Chairman Peterson and the other members of the Biofuels Caucus for their continued support of American farmers and ethanol producers, and for recognizing EPA’s legal obligation to account for the impact of refinery waivers in determining annual renewable volume obligations,” said RFA President and CEO Geoff Cooper. “These elected leaders understand that the Renewable Fuel Standard is an important tool for economic growth, energy security and greenhouse gas reduction. They also know that for these benefits to be enjoyed, EPA must faithfully enforce the law as written.”

Ethanol, Renewable Fuels Association, RFS

Reducing Greenhouse Gas Emissions With Renewable Diesel

Carrie Muehling

Renewable Energy Group (REG) is helping a North Carolina public utility to fuel part of its fleet with renewable diesel.

Thirty-four diesel vehicles in the Charlotte Water fleet began running on REG renewable diesel in May. In the first three months, they reduced greenhouse gas emissions by approximately 75 tons, which is equivalent to the greenhouse gas emissions of an average passenger vehicle that has driven over 183,000 miles. Over the course of a year, that would calculate to 300 tons, or the equivalent of over 732,000 miles driven.

“As a public utility, we believe we have an obligation to protect the environment,” said Kathy Gibson, Fleet Manager, Charlotte Water. “Fueling diesel vehicles with 100 percent renewable diesel instead of petroleum diesel is a way to promote sustainability in the communities we serve, and the results have been very encouraging.”

The renewable diesel-fueled vehicles have also performed well, and no equipment modifications were needed for them to run on the renewable fuel.

Renewable diesel is an alternative to traditional diesel fuel that is made from renewable resources and helps users lower greenhouse gas and other emissions. Compared with ultra-low sulfur diesel, renewable diesel reduces particulate matter by nearly 40 percent, carbon monoxide by 25 percent, nitrogen oxides by 15 percent and total hydrocarbons by over 10 percent.

After six months, Charlotte Water’s pilot project will be evaluated to decide whether to continue or even expand the fleet’s use of renewable diesel.

REG, renewable diesel, Renewable Energy

Biofuels Industry Still Awaits Waiver Package

Cindy Zimmerman

It’s been almost a month since President Donald Trump tweeted that “Farmers are going to be so happy when they see what we are doing for Ethanol” and USDA Secretary Sonny Perdue told crowds at Farm Progress Show about “small refinery waiver mitigation efforts” underway that President Trump “really wants to announce himself.”

Secretary Perdue expressed the frustration that many biofuels industry stakeholders are feeling answering a reporter last Thursday about when the promised “giant package” will be ready for release. “For the president and myself, sooner rather than later,” said Perdue. “He and I have probably spent more time on this one issue than almost anything else and I know he’s ready to get a decision and move forward.”

Perdue made those comments at the same time President Trump was meeting with oil state senators who are fighting against any effort to increase the Renewable Fuel Standard to make up for gallons waived under small refinery exemptions granted by EPA.

Sec. Perdue on refinery waiver package timing
Audio, Biodiesel, biofuels, corn, Ethanol, Ethanol News, USDA

Davis Introduces Small Refinery Exemption Fairness Act

Cindy Zimmerman

As farmers and biofuel producers continue to wait for a promised “small refinery waiver mitigation efforts” from the administration, U.S. Rep. Rodney Davis (R-Ill.) this week introduced the Small Refinery Exemption Fairness Act of 2019, which would require the EPA Administrator to use the average number of Small Refinery Exemptions (SREs) granted in the previous three calendar years when formulating the Renewable Volumes Obligations (SVO) for an upcoming year.

“I’ve heard from many farmers in my district, and this is top of mind for them and it’s top of mind for me,” said Davis. “We need certainty in an uncertain farm economy and the Small Refinery Exemption Fairness Act will put us on the right path to move forward. This bill should be passed immediately, and I hope that any final package proposed by President Trump will include the provisions in my bill.”

Requiring the EPA to use realistic estimates of the number of SREs they will grant rather than stating they plan to grant zero when calculating their annual RVO will give industry some degree of certainty and effectively relocate some of the lost gallons that were detrimental to the renewable fuels industry when, most recently, the EPA announced that they had granted 31 SREs. In an effort to incentivize the agency to issue fewer exemptions, his bill does not set a minimum number of waivers that the EPA should grant.

Rep. Davis talked about the waiver issue during an interview at the Farm Progress Show: Interview with Rep. Rodney Davis, R-IL 13th District

Audio, Biodiesel, biofuels, Ethanol, Ethanol News

Clariant Signs 2nd License for Cellulosic Ethanol Technology

Cindy Zimmerman

Clariant and ORLEN Południe have signed a license agreement on sunliquid® cellulosic ethanol technology.

The announcement represents a significant strategic milestone for Clariant as this second license agreement for its sunliquid technology is another successful step to commercialize its highly innovative and sustainable technology. For ORLEN Południe, the agreement supports the intention to realize a full scale commercial plant for the production of cellulosic ethanol from agricultural residues, which will further solidify the company’s position as a forerunner in the Polish biofuels and bio-component technologies.

Clariant is a specialty chemical company headquartered in Switzerland, and ORLEN Południe is a leader in the fuels and energy markets. The license agreement enables ORLEN Południe to use Clariant’s sunliquid technology for planned project development and plant operation at its Jedlicze site in southeastern Poland with the potential to integrate with the existing petroleum refinery.

Cellulosic, Ethanol, Ethanol News

Ethanol Report on Energy Security

Cindy Zimmerman

The Renewable Fuels Association (RFA) has released a new study that shows the Renewable Fuel Standard saves drivers money at the gas pump every day and also enhances energy security by greatly reducing or even eliminating the blow to our nation’s drivers when global oil production is disrupted.

The analysis, by independent economist and energy expert Dr. Philip K. Verleger, Jr., looks at oil market disruptions over nearly 50 years and provides an example in which the availability of ethanol avoids a significant impact to U.S. gasoline prices from a supply disruption like we have seen with the attacks on Saudi oilfields..

In this Ethanol Report interview, RFA’s Chief economist Scott Richman talks about this timely study’s findings.

Ethanol Report 9-19-19

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA