Biofuel Tax Credit Extension Introduced

Cindy Zimmerman

Rep. Miller-Meeks with RFA CEO Cooper at 2024 DC Auto Show

Ethanol champion Rep. Mariannette Miller-Meeks (R-IA) held on to her seat in Congress in a close race last week, and after declaring victory she immediately joined Sharice Davids (D-KS) in introducing legislation to extend the Second Generation Biofuel Producer Tax Credit for an additional year.

“Cellulosic biofuel producers have been anxiously awaiting guidance from the Treasury Department on the new 45Z clean fuel producer tax credit that is supposed to take effect just two months from now,” said Renewable Fuels Association President and CEO Geoff Cooper. “But with 2025 just around the corner, Treasury has not yet proposed regulations to implement the 45Z credit and there is no clarity on the timeline or path forward. By extending the existing tax credit for second-generation biofuels by one year, this bipartisan legislation provides marketplace certainty and allows for a smooth transition to the new tax credit regime.”

Other tax credits 45Z is supposed to replace include the $1 per gallon biodiesel and renewable diesel blenders tax credit, which is included in a package of tax credits extensions to be considered by Congress before the end of the year.

In the latest Ethanol Report podcast, Cooper said they were pleased to see so many ethanol champions like Miller-Meeks in Congress win re-election. “It was overall a very good night for ethanol in both chambers,” said Cooper.

RFA CEO Cooper on tax credit extension 3:59

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

Ethanol Report Election Analysis

Cindy Zimmerman

The Renewable Fuels Association was pleased to congratulate Donald Trump on his victory in the 2024 presidential election, and especially happy to see many ethanol champions retain their seats in Congress.

In this edition of the Ethanol Report podcast, RFA President and CEO Geoff Cooper says he is looking forward to working with the Trump 2.0 administration and the new Congress to finally get E15 approved nationwide, moving ahead with low carbon sustainable aviation fuel production, and pushing back on the EPA’s tailpipe emissions standard that mandates electric vehicles.

Cooper also talks about the need for a lame duck Congress to extend some biofuel tax credits that were supposed to be replaced by the 45Z clean fuel producer tax credit by the end of the year.

Ethanol Report 11-8-24 22:48

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.

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Minnesota Chosen as Site for New SAF Plant

Cindy Zimmerman

DG Fuels recently announced Moorhead, Minnesota as the site for a $5 billion manufacturing facility that will produce 193 million gallons per year of low-carbon aviation fuel (SAF) using agricultural and wood waste as feedstock.

This news is a notable milestone for the MN SAF Hub and is the most significant commitment towards commercial-scale SAF production in the state. The announcement also reflects Minnesota’s compelling value proposition to SAF producers, which includes abundant and diverse feedstocks, clean electricity, mature rail networks, and strong state support. The 193 million gallons projected by DG Fuels would represent nearly half of the fuel used at the MSP International Airport.

The Minnesota SAF Hub is a diverse coalition led by Bank of America, Delta Air Lines, Ecolab, and Xcel Energy committed to scaling the production of sustainable aviation fuel to replace conventional jet fuel.

aviation biofuels, biofuels, Ethanol, SAF

Kip Tom Reflects on Trump Election

Cindy Zimmerman

Indiana farmer Kip Tom is one of several names being floated as possible Secretary of Agriculture in the new Trump Administration. Tom runs a successful international farming operation and served as Ambassador to the United Nations Agencies for Food and Agriculture during President Trump’s previous term.

“When I think about President Trump and comparing 45 to 47, my perception is he’s a lot more prepared this time to lead our nation, to make sure he is able to expedite the employment of good personnel around him and I think he’s working hard to make sure that day one that they’re going to be leading and making sure that he can deliver on the promises he made to our nation,” said Tom in an interview Thursday. “I would tell you I would be honored if asked to serve and I would serve at the pleasure of the President in any role that he would offer to me at that time, but right now I’m a farmer and I just want to help represent agriculture.”

Tom has served as co-chair of Farmers and Ranchers for Trump 47 and he believes the rural vote made the difference in the election. “I think it was a mandate on Tuesday. You look at how Americans voted and especially rural America, nearly 75% of rural America, agriculture and ranchers voted for Donald Trump. That was asking for a change,” said Tom.

Tom expects President Trump to continue to support ethanol. “He’s very supportive of ethanol. I can’t imagine from the comments that I have heard made that he would walk away from that,” said Tom. “I believe that Trump is going to be very supportive of the biofuels industry because he knows that’s a direct linkage to supporting the economies and rural. Across the country.

In this interview, Tom talks about his reaction to the Trump victory, what he sees as priorities for the new administration in farm and energy policy, his thoughts on RFK Jr.’s potential influence in farm policy, and what kind of role he personally would like to play on the new Trump team. In addition, he gives his reflections on what it was like to be in Butler, Pennsylvania the day President Trump was nearly assassinated.

Interview with Kip Tom, Tom Farms 26:01

Audio, Ethanol, Ethanol News, USDA

Ethanol Groups Congratulate Trump

Cindy Zimmerman

President Donald Trump visits Southwest Iowa Renewable Energy in 2019

The Renewable Fuels Association offered congratulations to President-elect Donald Trump on his victory in the 2024 election Wednesday.

“On behalf of our nation’s ethanol industry, we congratulate Donald Trump on his election as our next president. We share his vision for putting American energy first, stimulating growth in domestic production, lowering fuel costs for consumers, and restoring balance and fairness in the global trade of energy commodities,” said RFA President and CEO Geoff Cooper.

During his first term as President, Trump voiced support for ethanol and specifically pushed for nationwide year-round availability of E15, the lower-cost fuel blend containing 15 percent ethanol. “More American ethanol production also means less dependence on foreign suppliers,” he said during a June 2019 visit to RFA member plant Southwest Iowa Renewable Energy, in Council Bluffs. “By fully embracing E15, we will reduce dependence on foreign oil by up to 250 million additional barrels every single year. Quite simply, it means more energy. And what can be wrong with that?”

Listen to Trump’s remarks in 2019 – President Donald Trump at SIRE ethanol plant

National Corn Growers Association President Kenneth Hartman Jr. said they look forward to working with the new administration and members of Congress to advance policy that is important to corn farmers. “We especially appreciate President Trump’s recognition that homegrown fuels, like ethanol, are important for our nation’s energy security and rural economies. We are also eager to work with his administration and Congress to enact improved farm policies and programs, expand market opportunities and build on the tax policies enacted during President Trump’s first term that are beneficial to corn farmers as they face a challenging financial outlook with low prices and high costs.”

Candidate Trump in 2016 at Iowa Renewable Fuels Summit

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw said they look forward to partnering with President Trump and his administration to get the rural economy back on track by boosting demand for American biofuels.

“Just days before the election, President Trump stated: ‘I love the farmers, and they love me.’ And the election results clearly show that after an unprecedented two-year drop in farm income, rural America and farmers put their faith in President Trump to turn this around,” said Shaw. “There is much President Trump can do during his first 100 days to help farmers and biofuels producers, including nationwide, year-round E15 and providing clarity on energy incentives for biodiesel producers.”

Trump made an appearance at the 10th Iowa Renewable Fuels Summit in 2016 when he ran for president the first time.

Audio, Ethanol, Ethanol News

Summit Carbon Vows to Move Forward Despite SD Loss

Cindy Zimmerman

South Dakota voters said no to Referred Law 21, which was a referendum on a law passed by the state legislature that would have helped the state’s carbon pipeline construction project headed by Summit Carbon Solutions. RL 21 would have implemented a list of protections for landowners and counties impacted by the construction of the pipeline but would not have prevented pipeline companies from using “eminent domain” to gain land access. The measure was defeated by a vote of 60% opposed.

Undeterred, Summit Carbon Solutions issued a statement Wednesday saying it will reapply on Nov. 19 to the South Dakota Public Utilities Commission for a permit which was denied last year. “Our focus continues to be on working with landowners and ensuring the long-term viability of ethanol and agriculture in the state. Projects like ours have successfully navigated South Dakota’s existing regulatory landscape in the past. We will continue to operate within the current framework, knowing that the future of ethanol and agriculture is vital to our shared success.”

Summit Carbon Solutions has partnered with ethanol producers in several Midwestern states, including South Dakota, to capture carbon dioxide emitted by ethanol plants and pipe it to North Dakota for underground storage, which would help lower the carbon intensity score of corn ethanol for use in sustainable aviation fuel.

aviation biofuels, Carbon, corn, Ethanol, Ethanol News

September U.S. Ethanol Exports Climb

Cindy Zimmerman

U.S. ethanol exports rose five percent in September, reaching 148.5 million gallons (mg), according to the latest Trade Monitor report from the Renewable Fuels Association.

Seventy percent of total ethanol exports went to just three major markets – Canada, the United Kingdom, and the European Union.

Canada retained its position as the top destination for the 42nd consecutive month, accounting for 44% of all U.S. ethanol exports. Exports to Canada rose 14% to a nine-month high of 64.9 mg, predominantly comprising denatured fuel. The United Kingdom, with U.S. ethanol shipments rising 25% to a two-month high of 21.1 mg, emerged as the largest market for undenatured fuel ethanol in September. Exports to the European Union continued an upward trajectory for the second consecutive month, surging 44% to a six-month peak of 18.3 mg. Other significant markets included Colombia (12.9 mg, up 30%), Mexico (6.9 mg, down 21%), Oman (6.0 mg, up 7%), India (5.6 mg, down 47%), and the Philippines (5.1 mg, a striking 380% increase). Notably, both Brazil and China were absent from the September export market. U.S. ethanol exports have reached a record 1.39 bg, marking a 37% increase compared to the same period last year.

U.S. exports of dried distillers grains (DDGS) were down 10% in September to a three-month low of 1.01 million metric tons (mt), reflecting mixed market conditions.

Mexico reclaimed its position as the largest market for U.S. DDGS, with exports up 9% to 178,206 mt. Exports to South Korea, while down 18%, remained substantial at 137,591 mt. Shipments to Turkey rose 2% to 119,542 mt, marking a six-month high, and exports to Vietnam surged 23% to a five-month high of 88,942 mt. Other notable markets included Indonesia (64,626 mt, down 9% to a 12-month low), Canada (53,102 mt, up 11%), the European Union (50,917 mt, down 52%), the United Kingdom (41,444 mt, up 78% to a 21-month high), Japan (30,464 mt, up 14%), and New Zealand (30,000 mt, up from zero).

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

Grassley Addresses 45Z and Blenders Tax Credit

Cindy Zimmerman

Sen. Charles Grassley (R-IA) addressed whether farmers and biofuel producers might see rules for the 45Z tax credit before the end of the year, or if the blenders tax credit will be extended, during a call with reporters on Tuesday.

“45Z is not a subject of Congressional action, it’s a subject within the Treasury Department on the rules,” said Grassley. “Those of us in the Midwest are trying to influence Treasury that the rules should not penalize domestic producers to a disadvantage to imported feedstock.”

The 45Z clean fuel production tax credit is supposed to replace the $1 per gallon biodiesel and renewable diesel blenders tax credit, which is slated to expire at the end of this year and Grassley says an extension is already included in a package of tax credits. “It’s in with another whole bunch of maybe 20…tax credits that have to be passed and I expect them to be passed.”

That would mean the blenders tax credit would remain in place until rules for 45Z are complete.

Grassley press call 18:45

Audio, aviation biofuels, Biodiesel, Ethanol News, SAF

Veterans for Renewable Fuels Offers Holiday Fuel Discount

Cindy Zimmerman

Veterans around Olathe, Kansas will be able to fill up for less on Veterans Day thanks to a special promotion by Kansas Corn and Veterans for Renewable Fuels, an initiative of the Renewable Fuels Association.

All drivers, veterans or not, can fill up from 10 a.m. to noon Monday, Nov. 11, at the Casey’s at 13406 W 151st St. in Olathe, Kansas, for the special price of $2.15 per gallon for Unleaded88/E15 fuel and $0.85 per gallon for E85. As an additional benefit, veterans, active-duty service members and those serving in the reserves or National Guard will receive a $20 Casey’s gift card from event sponsors RFA and Kansas Corn, while supplies last. Veterans can also enjoy a free any size coffee or fountain drink from Casey’s, with proof of service. Exclusions may apply.

“We’re happy to be able to work with Kansas Corn and Casey’s to help drivers understand the value of lower-cost, lower-carbon ethanol while also honoring the men and women who help keep our country free,” said RFA Senior Vice President for Industry Relations and Market Development Robert White, himself an Army veteran. “The ethanol industry is proud of the many veterans who are a large part of our workforce, and partnering with corn growers and a terrific retailer like Casey’s really adds to the value of this event on such a holiday as Veterans Day.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Western Plains Energy Adds Whitefox ICE XL Solution

Cindy Zimmerman

In its effort to become a net-zero emissions producer, Kansas-based Western Plains Energy has upgraded their bioethanol facility with a fully integrated Whitefox® membrane solution.

According to Whitefox, this is the first installation in the United States of the new ICE® XL membrane solution, which will enable Western Plains to achieve 50% reduction in natural gas and steam, 25% increase in production capacity, and reduction in operational costs. Together, this allows Western Plains to reduce their carbon intensity score by more than ten percent.

Western Plains CEO Derek Peine said, “The Whitefox ICE® XL system is a fully integrated solution within our distillation, dehydration and evaporation (DD&E) unit operations. It fully replaces the molecular sieves, with a proprietary membrane system, providing continuous processing and reduced energy and water consumption. It is designed to allow us to reduce our steam usage by up to 50%, which is a big step towards our net zero carbon goal.”

Carbon, Ethanol, Ethanol News