President Urged to Review Argentine Biodiesel Case

Cindy Zimmerman

As President Trump headed to Argentina this week for the G20 Summit, three biodiesel stakeholder trade groups wrote him to express concern about the U.S. Commerce Department “changed circumstances” reviews of U.S. trade duties on Argentine biodiesel companies. The National Biodiesel Board, the American Soybean Association, and the National Renderers Association urged the president to ensure that Commerce “undertake a rigorous, comprehensive and transparent review before considering any adjustment to the duty rates it established just this year.”

The U.S. Commerce Department imposed antidumping and countervailing duty orders in January and April 2018, following investigations in which the government found that biodiesel imports from Argentina were massively subsidized and dumped, injuring U.S. biodiesel producers.

“Given the importance of this new remedy for American energy and agriculture against unfair imports, it is a mystery that Commerce would open an expedited path for Argentina to reduce or remove the tariffs and resume their illegal imports. This political concession to the government of Argentina would once again distort U.S. markets and undercut crop prices that are only now regaining stability, following other trade disruptions,” the groups, which represent stakeholders in U.S. biodiesel production, state in the letter.

Read more from NBB.

Biodiesel, NBB, Soybean, Trade

USDA Under Secretary Northey at #ARA2018

Under Secretary for Farm and Foreign Agricultural Service Bill Northey discussed trade and a 2018 farm bill, among other topics, during a visit to the 2018 Agricultural Retailers Association convention this week in Boca Raton, Florida.

“I’m very hopeful,” said Northey about getting a farm bill by the end of the year, especially after word Thursday from House and Senate agriculture committee leadership that they have reached an agreement on a bill.

On the trade front, Northey talked about the second round of trade mitigation payments approved by the president to offset export disruptions caused by retaliatory tariffs, and whether changes will be made in the payment structure used for the first round. “We’re within a very few weeks of being able to make an announcement,” said Northey, who said they are looking at potential changes. “It’s imperfect, but what’s important is that the president and secretary said we are going to try and soften the blow as best we can.”

USDA Under Secretary for Farm and Foreign Agricultural Service Bill Northey –
USDA Under Secretary Bill Northey comments at #ARA2018

USDA Under Secretary Bill Northey interview at #ARA2018

2018 ARA Conference & Expo Photo Album

AgWired Animal, AgWired Energy, AgWired Precision, ARA, Audio, farm bill, Trade, USDA

Study Finds Refiners Can Increase Octane Without Ethanol

Cindy Zimmerman

A new Energy Information Administration (EIA) study has found that U.S. petroleum refineries would be able to produce gasoline with a higher minimum octane rating (95 Research Octane Number, or “RON”) beginning in 2022 without using more ethanol meet such an octane standard.

The study, conducted by oil industry consulting firm Baker & O’Brien, determined “refiners would simply increase reformer severity to produce higher octane gasoline blendstock, which would then be blended with 10% ethanol…to meet the minimum 95 RON gasoline requirement.”

“This study confirms that a 95 RON requirement by itself would do nothing to expand the market for ethanol, even though ethanol will continue to reign as the cheapest and cleanest source of octane available on the market,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper said. “Rather than using ethanol to boost octane, refiners would choose to run their reformers more intensively to increase production of higher octane hydrocarbons, many of which are highly toxic and would worsen air quality. However, if implemented alongside of—not in lieu of—the Renewable Fuel Standard, a 95 RON requirement could provide new market opportunities for America’s ethanol producers and farmers, as refiners would be compelled to do the right thing and choose ethanol as the primary means of raising octane levels. Still, to truly deliver the efficiency gains and emissions reductions needed in the future, a high octane, low carbon fuel with 98-100 RON would be a much better option.”

Read more from RFA.

Energy, Ethanol, Ethanol News, Octane, RFA

Al-Corn Clean Fuel Support MN FFA

Cindy Zimmerman

Al-Corn Clean Fuel has been recognized by the Minnesota FFA Foundation for the company’s support of programing throughout southeast and southern Minnesota. The partnership between Al-Corn Clean Fuel and the Minnesota FFA Foundation allows for scholarship funds to assist 58 FFA chapters in select programs, including service projects.

“The leadership skills acquired by the next generation of agricultural leaders through organizations such as FFA will benefit our local communities well into the future,” said Rod Jorgenson, Chairman of the Board for Al-Corn Clean Fuel.

“The need to build partnerships in support of local and state agricultural education programs continues to grow as budgets are increasingly tight,” said Val Aarsvold, executive director of the Minnesota FFA Foundation. “It’s a win-win partnership as our programs receive valuable support to prepare future employees for agricultural careers and develop skills to provide leadership for their local communities.”

Ethanol, Ethanol News

RFA CEO Calls Out Big Oil’s E15 Hypocrisy

Cindy Zimmerman

In an editorial this week, Renewable Fuels Association (RFA) president and CEO Geoff Cooper called out the hypocrisy of oil interests when it comes to allowing year round sales of 15% ethanol, E15.

Noting that “hell hath no fury like Big Oil scorned,” Cooper debunks all of the oil industry’s dire warnings in response to President Trump’s recent decision calling for the year-round availability of E15, including that it can “damage engines,” “put consumers at risk,” and “void manufacturer warranties.”

It’s also more than a little ironic that while the oil industry is drumming up misinformation about E15 and auto warranties, it continues to sell large volumes of low-octane gasoline (85 AKI)—a fuel that is most certainly not approved or warrantied by a single automaker. In fact, the Department of Energy and EPA warn that using gasoline with low octane can “…cause the engine to run poorly and can damage the engine and emissions control system over time. It may also void your warranty.” Hello pot, meet kettle.
Click here to read Cooper’s commentary.

Commentary, E15, Ethanol, Oil, Opinion, RFA

Driving Ethanol Performance Value

Cindy Zimmerman

Growth Energy is celebrating ten years of advocating for ethanol since it was created in 2008. This edition of the Driving Ethanol podcast is the second in a series of three focusing on a decade of accomplishments for the organization.

This episode reflects on how Growth Energy has proven ethanol’s performance value through the high profile American Ethanol partnership with NASCAR, which began in the 2011 season. It features comments from Growth Energy CEO Emily Skor, former NASCAR CEO Brian France, POET CEO and Growth Energy co-chair Jeff Broin, Marquis Energy CEO Mark Marquis, former National Corn Growers Association presidents Bart Schott and Darrin Ihnen, Richard Childress Racing CEO Richard Childress, and NASCAR driver Austin Dillon.

Growth Energy Driving Ethanol podcast 11-27-18

Subscribe to the Driving Ethanol podcast

Audio, Driving Ethanol podcast, Ethanol, Ethanol News, Growth Energy

House Tax Package Includes Biodiesel Extension

Cindy Zimmerman

House Ways and Means Committee Chairman Kevin Brady (R-TX) has released a tax and oversight package that would extend several expired tax credits, including the biodiesel and renewable diesel tax incentive.

According to the National Biodiesel Board (NBB), the proposal for a multi-year extension the incentive would keep the credit at its current rate of $1.00 per gallon for 2018 through 2021 but gradually reduce it to $0.33 per gallon by 2024 and then allow it to expire.

“The biodiesel industry has long advocated for a long-term tax extension to provide certainty and predictably for producers and feedstock providers,” said NBB Vice President of Federal Affairs Kurt Kovarik. “Too often, the credit has been allowed to lapse and then reinstated retroactively, which does not provide the certainty businesses need to plan, invest, and create jobs. We appreciate the recognition that the biodiesel industry is integral to our domestic energy needs through this long-term extension.”

The tax package also includes retirement and other savings enhancements and legislation to redesign the Internal Revenue Service.

Biodiesel, NBB

Refinery Exemptions Continue to Destroy Demand

Cindy Zimmerman

With the latest news that Chevron received a hardship refinery exemption from the Renewable Fuel Standard, the Renewable Fuels Association (RFA) has released a new analysis showing just how destructive the EPA waivers are.

RFA Chief Economist Scott Richman says the 19 small refinery exemptions granted retroactively for the 2016 compliance year, and the 29 for 2017, have impacted both components of ethanol demand: quantity and price.

The impact on quantity is reflected in the ethanol “blend rate,” the average inclusion level of ethanol in the nation’s gasoline supply. The blend rate exceeded 10% in all but three months in 2017, and it hit a record 10.8% in January 2018. However, it slumped starting in February 2018, as exempted refiners were flush with reinstated RINs, and as rumors and press reports regarding the exemptions made their way into the market. The blend rate fell to 9.8% in February, ticked down to 9.7% in March and receded further 9.5% in April. Between February and June, the blend rate exceeded 10% in only one month.

Meanwhile, ethanol prices were 8 cents/gallon lower than they otherwise would have been in February, and that the impact grew to 34 cents/gallon by June and stayed at that level throughout the summer, and Richman says the impact on the ethanol industry continues.

Read more of the analysis here.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

ACE Completes 6th Mexico Ethanol Workshop

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty traveled to Mexico City this month for the sixth and final ethanol technical workshop held this year for Mexican petroleum equipment installers and retailers. The workshops were a joint effort of the U.S. Grains Council and the Mexican Association of Service Station Suppliers (AMPES) to educate retail station owners about opportunities in sourcing, marketing, and retailing ethanol-blended gasoline.

“These workshops have helped Mexican fuel marketers, equipment suppliers, and even some government officials understand offering gasoline with 10 percent ethanol is a safe and economically sensible way to have cleaner air and provide less expensive options at the pump for drivers in Mexico,” Lamberty said. “‘The math’ of ethanol blends is undeniably attractive for station owners and consumers right now, and our next challenge will be helping businesses do what they need to do to distribute our product to places where it can be blended and delivered to stations. Fuel equipment companies say the workshops have inspired interest from retailers and prospective wholesale distributors of ethanol.”

Mexico City is the final workshop this year, but interest and attendance have been increasing at each event, and ACE will continue to work with the USGC to provide information to retailers and others who want to sell more ethanol.

ACE, Ethanol, Ethanol News

Enogen Means Energy for Feed and Fuel

Cindy Zimmerman

The same trait that makes Enogen corn hybrids great for ethanol production is also good for livestock feed.

The higher levels of the alpha-amylase enzyme in these hybrids help break down sugar into energy more efficiently which benefits both ethanol producers and cattle. “The Enogen technology and how it gains efficiencies and makes the ethanol plant money is similar in the rumen of a cow,” said Chris Tingle, head of commercial operations for Enogen at Syngenta, at the 2018 NAFB Convention Trade Talk. He says recent data from Kansas State and the University of Nebraska-Lincoln shows about a five percent increase in feed efficiency. “Which is critical when we see the tensions of those markets now and every penny counts.”

Meanwhile, Enogen’s ethanol plant footprint continues to grow. Learn more in this interview –
NAFB18 Interview with Chris Tingle, Syngenta

2018 NAFB Convention Photo Album

Audio, corn, Enogen, Ethanol, Ethanol News, livestock, livestock feed, NAFB, Syngenta