USDA Study Shows Big Ethanol Benefits

Cindy Zimmerman

A brand new study out yesterday from USDA finds greenhouse gas emissions from corn-based ethanol are almost 40 percent lower than gasoline, and could be as high as 43 percent, when ethanol is refined at natural gas-powered refineries.

The study, led by Dr. Jan Lewandrowski of USDA’s Office of the Chief Economist, and published in the journal Biofuels, supports findings of other research that ethanol has a significantly better greenhouse gas profile than previously estimated.

The study, titled “The greenhouse gas benefits of corn ethanol—assessing recent evidence,” attributes much of these additional benefits to revised estimates of the impacts of land-use change as a result of demand for ethanol. Where previous estimates anticipated farmers bringing additional land into production as a result of increased corn prices, recent analysis finds only modest increases in crop acreage. Additional improvements at ethanol refineries, combined with on-farm conservation practices that reduce greenhouse gas emissions, such as reduced tillage and cover crops, have further decreased emissions associated with corn ethanol. The study projects that with added improvements in refineries and on farms, a reduction of over 70 percent in lifecycle emissions is possible by 2022.

“These new findings provide further evidence that biofuels from America’s heartland reduce greenhouse gases even more than we thought, and that our farmers and ethanol plants continue to become more efficient and effective,” said Secretary Sonny Perdue.

Perdue will address the Advanced Bioeconomy Leadership Conference (ABLC) today at 2:25 Eastern where he is likely to talk about the new study.

Ethanol, Ethanol News, USDA

Iowa Congressman Addresses ACE Fly-in

Cindy Zimmerman

After a full day of visiting the offices of more than 120 members of Congress, attendees of the American Coalition for Ethanol annual DC Fly-in were greeted by Rep. Dave Loebsack (D-IA) at their reception Tuesday evening.

The congressman is a strong supporter of the ethanol industry in his district and state and agrees with ACE members that the Small Refinery Exemptions (SREs) that have been granted by EPA are harming producers and farmers. “We need to reallocate those gallons as best we can,” said Loebsack, adding that EPA needs to be more accountable. “It’s really a matter of holding their feet to the fire.”

In this interview, Loebsack also comments on the flooding situation in Iowa.
ACE19DC Interview with Rep. Dave Loebsack (D-IA)

2019 ACE Fly-in Photo Album

ACE, Audio, Ethanol, Ethanol News

ACE Fly-in Comes at Critical Time for Ethanol

Cindy Zimmerman

The Midwest continues to experience the devastating impact of flooding, EPA has proposed a rule that would allow year-round sales of E15, and Small Refinery Exemptions are still being granted. That’s just a few of the critical issues facing corn farmers, ethanol producers and fuel retailers as the American Coalition for Ethanol (ACE) holds its 11th annual DC Fly-in.

ACE president Duane Kristensen, Chief Ethanol Fuels in Hastings, Nebraska, kicked off the event this morning, which also included a visit from EPA Air and Radiation assistant administrator Bill Wehrum. In this interview, he talks about the situation in Nebraska, and what the industry is taking to the Hill today.

ACE19DC Interview with ACE president Duane Kristensen, Chief Ethanol

2019 ACE Fly-in Photo Album

ACE, Audio, EPA, Ethanol, Ethanol News

Industry Stakeholders Discuss Distillers Feed Products

Cindy Zimmerman

The National Corn Growers Association (NCGA) recently held the first Distillers Feed Products Nutrition Roundtable, bringing together livestock and poultry producers, animal nutrition experts, and ethanol technology providers to discuss the changing number and nutrient profile of distillers feed products.

As the profile of distillers feed products change, challenges and opportunities arise. Beef, pork, poultry, and dairy experts, Drs. Dan Loy, Jerry Shurson, Shelia Purdum, and Alvaro Garcia, respectively, gathered to discuss current understanding and key research needs. The afternoon consisted of technical presentations by ICM and Fluid Quip Process Technologies along with a discussion on the next steps and action items to address the changing nutrient profile and value added from these feed products. Other participants included representatives from Green Plains, Flint Hills Resources, National Cattlemen’s Beef Association, and Mitch Schweers, a farmer from Nebraska and member of NCGA’s Feed, Food and Industrial Action Team.

NCGA Director of Market Development Sarah McKay said the roundtable is one step they are taking across the value chain to better understand new corn fractionation technologies that separate out the various components of corn to allow improved utilization of the subsequent product streams. “While this technology has a lot of potential for early adopters and could increase corn grind, it will require a change in how the value chain views and uses the products of ethanol plants. Gathering stakeholder input and starting a dialog early should help the rollout of this technology proceed smoothly.”

corn, Distillers Grains, Ethanol, Ethanol News, Feed

Biodiesel Interests Testify at EPA Hearing

Cindy Zimmerman

At a hearing in Michigan on Friday, representatives from the National Biodiesel Board (NBB) and its member companies weighed in on the Environmental Protection Agency’s (EPA) proposal related to sales of 15 percent ethanol fuel (E15) and changes to the Renewable Identification Number (RIN) compliance system. Biodiesel interests also commented on the need to stop granting Small Refinery Exemptions (SREs).

“We appreciate EPA taking claims of RIN market manipulation seriously. But because the agency has yet to see data-based evidence of such behavior, we recommend that EPA not finalize the RIN reform portion of the proposed rule,” said NBB Chairman Kent Engelbrecht, ADM.

“EPA must change its practice of encouraging retroactive small refinery exemption petitions,” Kurt Kovarik, NBB’s Vice President of Federal Affairs, testified. “We ask that the agency use this opportunity to instead address the timing of small refinery exemption petitions. If EPA finds that it can easily propose a quarterly compliance deadline in the RIN reform proposed rule, the agency should feel just as comfortable applying a similar reasonable administrative requirement that small refineries submit petitions before the end of the compliance year.”

The president of NBB member W2Fuel, based in Michigan, also testified at the hearing. “To succeed, the biodiesel industry needs signals that allow us to forecast market demand. While the RVO should be the forecast, the current practice of granting retroactive small refinery exemptions undermines that signal,” said W2Fuel president and CEO Roy Strom.

Audio file – National Biodiesel Board Chairman Kent Engelbrecht, ADM; Kurt Kovarik, VP Federal Affairs; Roy Strom, W2Fuel –

EPA Michigan hearing - National Biodiesel Board
Audio, Biodiesel, EPA, NBB, RFS

Ethanol Producers United in Comments to EPA

Cindy Zimmerman

Four ethanol producers representing plants in four different states made “substantially similar” points at hearing Friday on proposed regulatory changes related to retail sales of 15% ethanol blended fuel (E15) and the renewable identification number (RIN) compliance system Renewable Fuel Standard (RFS) program.

Substantially similar, otherwise known as “sub-sim”, is a term used in the EPA proposal relating to the definition of E15 in relation to the Tier 3 certification fuel, which is E10. Ethanol producers support that definition but oppose EPA’s proposal to impose certain restrictions on the use of E15 under the “sub sim” approach. Producers also expressed concerns about the regulation of E15 made at blender pumps, which as proposed would not qualify for the 1-psi RVP waiver.

All four producers also urged EPA to separate the E15 and RIN reform provisions of the proposal and consider them individually. In addition, they stressed the damage caused by the granting of Small Refinery Exemptions (SRE) by EPA and urged the agency to reevaluate how those requests are being handled.

Listen to their comments below:

Ethanol producers –
EPA Michigan hearing - Randy Doyal, Al-Corn Clean Fuel, MN

EPA Michigan hearing - Mick Henderson, Commonwealth Agri-Energy, KY

EPA Michigan hearing - Nick Bowdish, Elite Octane, IA

EPA Michigan hearing - Pam Miller, Siouxland Ethanol, NE
Audio, Ethanol, Ethanol News

EPA Hearing Witnesses Stress Problem of SREs

Cindy Zimmerman

Small refinery exemptions were not the topic of an EPA hearing Friday in Michigan, but many witnesses used precious seconds of their allotted three minutes to comment on how they are impacting an already stressed ethanol industry.

“While RFS small refinery exemptions (SREs) are not the explicit subject of this rulemaking or today’s hearing, we feel compelled to remind EPA that continued abuse of the SRE program would significantly undermine the ethanol market expansion intended to result from finally allowing year-round sales of E15,” said Renewable Fuels Association (RFA) president and CEO Geoff Cooper. “In other words, continued SREs threaten to derail the central objective of the rulemaking under consideration today.”

EPA Michigan hearing - RFA CEO Geoff Cooper

Iowa Governor Kim Reynolds got to talk for 12 minutes and spent a good amount of that time addressing the harm caused by SREs.

EPA Michigan hearing - Iowa Gov. Reynolds
Audio, E15, Ethanol, Ethanol News, RFA, RFS

EPA Grants Another Small Refinery Waiver

Cindy Zimmerman

With a new waiver announced this week, the Environmental Protection Agency (EPA) has now granted a total of 35 small-refinery exemption (SRE) from the 2017 Renewable Fuel Standard (RFS) compliance year. Another 39 requests are still pending for 2018 exemptions.

“If these exemption trends continue, they will fully and completely undermine the RFS at the expense of rural America and cause consumers to pay more at the pump for dirtier fuels,” said Renewable Fuels Association (RFA) president and CEO Geoff Cooper. “With dozens of ethanol plants closing or idling and U.S. ethanol consumption showing the first annual decline in 20 years, it is unfathomable that the new EPA Administrator would double down on former Administrator Pruitt’s unjustifiable abuse of the small refinery exemption provision.”

As EPA holds a hearing today in Michigan on proposed regulatory changes related to E15 and Renewable Identification Numbers (RINS), the agency can expect to hear from ethanol stakeholders about the demand destruction being caused by the SREs. South Dakota Farmers Union President Doug Sombke says they are against the proposal to allow year round sales of E15 because they fear it will limit ethanol blending to only 15 percent.

Sombke says the EPA waivers to the refining industry resulting in a demand loss of billions of gallons of ethanol and hundreds of millions of bushels of corn has made this a critical issue because “E15 alone will never make up this loss in volume according to numerous private and government studies,” says Sombke. “This is not that complicated. Stop the waivers.”

E15, Ethanol, Ethanol News, RFA, RFS

EPA Hearing on E15 in Michigan Tomorrow

Cindy Zimmerman

Ypsilanti, Michigan will be the place Friday morning for advocates and opponents of EPA’s proposed regulatory changes related to retail sales of 15% ethanol blended fuel (E15) and the renewable identification number (RIN) compliance system Renewable Fuel Standard (RFS) program.

The Environmental Protection Agency is holding a hearing on the proposal released just 16 days ago that would allow E15 to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 during the summer months, and to change the RIN program to bring greater transparency to the market and deter price manipulation.

The hearing will start at 9:00 am Eastern on Friday, March 29 and will end when all parties present who wish to speak have had a chance to do so. Location is the Ann Arbor Marriott Ypsilanti at Eagle Crest.

EPA has set up a listen-in line for those unable to be at the hearing. The number is 866-667-1852, Conference Code 7695837.

biofuels, EPA, Ethanol, Ethanol News

Flooding Takes Bite Out of Ethanol Production

Cindy Zimmerman

Repair crews are working around the clock to get roads and railways impacted by flooding in the Midwest back in service, while the latest weekly ethanol supply and demand numbers show production down due to the disaster.

According to the Renewable Fuels Association (RFA), ethanol production for the week ended March 22 fell 29,000 barrels per day (b/d), or 2.9%, to an average of 975,000 b/d, equivalent to 40.95 million gallons daily. This was the lowest production rate since the week ended Feb. 1, which in turn was the lowest level since Oct. 2017. The four-week average ethanol production rate declined 1.3% to 1.002 million b/d—equivalent to an annualized rate of 15.36 billion gallons.

Stocks of ethanol ticked up just a fraction to 24.4 million barrels but still represents a new record high.

Rail service remains disrupted in several states, including Nebraska and Iowa, and BNSF Railway reports employees and contractors working to repair track and restore service in areas that have experienced heavy flooding. BNSF has created a web page to address service disruptions and recovery operations in the Midwest after record flooding. It provides resources for customers affected by flooding, as well as a photo gallery for news media.

Ethanol, Ethanol News, RFA, transportation