RFA Reports Membership Growth

Cindy Zimmerman

The Renewable Fuels Association had a growth spurt this week, adding three new associate members to its rolls. The new companies are Nataqua, iRely, and Antora Energy

Nataqua is an early-stage company transforming CO₂ into ethanol with innovative technology that utilizes CO₂ gas, liquid water, and affordable industrial electricity. Their efficient process converts CO₂ exhaust streams directly into ethanol, which is then integrated into pre-distillation mixtures to enhance ethanol concentrations and reduce distillation costs.

iRely‘s agribusiness software offers a comprehensive, integrated platform tailored to the needs of agricultural businesses. It supports various operations, including grain origination, feed management, crop inputs, agronomy, and farm retail. The software streamlines processes like contract management, inventory control, risk management, and traceability, all while providing real-time data and analytics.

Antora Energy delivers zero-emissions industrial heat to predictably and profitably decarbonize industrial operations. Factory-built in the United States, Antora’s thermal batteries convert low-cost, intermittent renewable electricity into reliable process heat, substantially lowering CI scores and future-proofing energy costs. Antora is actively working with ethanol facilities across the U.S. to decarbonize their process heat and electricity using local wind power.

RFA President and CEO Geoff Cooper welcomed the new members and says they reflect RFA’s ongoing commitment to championing innovative and sustainable energy solutions while driving the advancement of the renewable fuels sector.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

GROWMARK Purchases Stake in Big River Resources

Cindy Zimmerman

Farmer cooperative GROWMARK announced this week an investment in West Burlington, Iowa, ethanol plant Big River Resources LLC.

GROWMARK CEO Mark Orr says GROWMARK believes ethanol will continue to be a strong driver of the agricultural industry with the potential for new and exciting innovative uses such as a feedstock for Sustainable Aviation Fuel.

“Our investment in Big River Resources aligns with GROWMARK’s strategic goals to diversify and strengthen our operations. This investment will enable us to capture new revenue streams and provide added value to our farmer members,” he said.

“We are pleased to welcome GROWMARK to the Big River team as a new investor. GROWMARK’s cooperative nature and focus of returning value to its member-owners and farmer customers aligns strongly with our goals,” said David Zimmerman, CEO of Big River Resources. “We are committed to the enhancement of local communities through continuing value-added corn processing as well as maximizing the growing carbon economy for our shareholders and producer-members. GROWMARK will be a strong partner for us in realizing these goals.”

In addition to being the sixth largest ethanol producer in the U.S., Big River’s operational footprint in Illinois, Wisconsin, and Iowa aligns with the GROWMARK System, providing greater access to the upstream value added to the corn produced by GROWMARK’s farmer customers.

Ethanol, Ethanol News, GROWMARK

Ethanol Report on Election Issues

Cindy Zimmerman

No matter what happens in November, there will be a new president in January and a new administration that could be radically different than the current one, and that could mean a big difference in the outcome of policy issues for the ethanol industry.

In this edition of the Ethanol Report, Renewable Fuels Association President and CEO Geoff Cooper discusses with reporters some of the key issues that could carry over into a new administration, including 45Z and other tax credit programs under the Inflation Reduction Act, EPA’s tailpipe standards, year-round E15, the Renewable Fuel Standard, and trade.

Ethanol Report 9-18-24 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.

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

Detroit to Benefit From Grant to Expand Biodiesel Use

Cindy Zimmerman

A Detroit-based fuel distribution company has received a $1.17 million grant to expand use of biodiesel for improved air quality in the metropolitan area.

Waterfront Petroleum Terminal Company received the grant through the USDA High Blends Infrastructure Incentive Program (HBIIP) and plans to use the funds to add biodiesel storage tanks and equipment to its Dearborn fueling facility – increasing its biodiesel sales capacity by 10 million gallons per year. The improvements are expected to more efficiently serve both marine and land-based customers at the Dearborn site.

Waterfront Petroleum Terminal Company is among the stakeholders in the Michigan Advanced Biofuels Coalition (MiABC), an organization promoting use of advanced biofuels to support energy security and improve air and environmental quality.

Biodiesel, USDA

RFA Seeks Update on EPA Feedstock Audits

Cindy Zimmerman

The Renewable Fuels Association is asking the Environmental Protection Agency for an update on the investigation into certain biofuel feedstock imports and also urged the adoption of stricter feedstock verification requirements for imported used cooking oil (UCO) and tallow.

In a letter this week to EPA Administrator Michael Regan, RFA President and CEO Geoff Cooper noted that monthly tallow and UCO imports combined have jumped from 284 million pounds in 2021 to 2,667 million pounds so far this year. “The recent surge in imports of questionable used cooking oil (UCO) and tallow for biomass-based diesel (BBD) production is suppressing demand and values for domestically produced feedstocks like distillers corn oil and soybean oil, as well as the crops from which those oils are derived,” said Cooper. “Today, nearly one out of every six gallons of U.S.-produced BBD is made from imported UCO or tallow—most of which comes from China and Brazil, two countries that maintain punitive import tariffs on U.S. biofuels.”

Last month, EPA confirmed audits were being conducted of supply chain documentation for certain imported feedstocks, including UCO, used to produce renewable fuel and generate credits under the Renewable Fuel Standard, but no results have been announced by the agency.

“In the event that EPA has completed its investigation, we respectfully ask that the Agency publicly share its findings and information regarding any corrective actions being taken,” Cooper wrote. “If the audits are not yet complete, we ask that the Agency share an update with the public on its progress and an estimated timeline for completion.”

Cooper stressed RFA’s concerns that current regulations, especially record-keeping requirements, are overly lax and “are insufficient to assure the legitimacy of certain imported waste oils, fats, and greases.” RFA called on EPA to engage a standards developing organization to develop test methods to conclusively and quickly differentiate various fats, oils, and greases, just as EPA requires for the differentiation of co-processed starch and cellulosic feedstock from in situ ethanol fermentation.

Biodiesel, biofuels, biomass, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS

USDA Working on Tracking Carbon Intensity

Cindy Zimmerman

USDA Under Secretary for Farm Production and Conservation Robert Bonnie is confident that sustainable aviation fuels hold great promise for American agriculture if we can get the rules right.

“This is a real opportunity for American agriculture to create a marketplace that will reward them from the for the stewardship they have been doing and the stewardship they are and will be doing,” said Bonnie on Monday at the 10th annual Ag Outlook Forum in Kansas City.

Bonnie says traceability of commodities through the supply chain is important in establishing carbon intensity scores. “In June, you saw a request for information around biofuels from USDA that sought to get responses from the public about creating a system to actually track carbon intensity completely through the supply chain. We think that could be really important for sustainable aviation fuels and biofuels more broadly,” Bonnie said. “We’re convinced that if we get good rules in the US and then if those rules are are similar across the globe, that US agriculture is going to be really, really good at producing sustainable aviation fuels through through low carbon commodities.”

Farmers and ethanol producers are anxiously awaiting guidance for the 45Z clean fuel production tax credit authorized in the Inflation Reduction Act. “As we look to 45 Z, we’ve got to apply provide more flexibility, more crops and more ability to essentially use a menu approach to choosing which climate,” Bonnie said.

USDA is working to implement the Growing Climate Solutions Act which authorizes the establishment of a voluntary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into voluntary environmental credit markets for farmers, ranchers, and private forest landowners.

Listen to Bonnie’s remarks here:
Ag Outlook Forum - USDA Under Secretary Robert Bonnie 25:28

Audio, aviation biofuels, biofuels, Carbon, Ethanol, Ethanol News, SAF

Rep. Finstad Tours Greenfield Global Winnebago

Cindy Zimmerman

L-R: Marcus Jensen and Paul Peters, Greenfield Global Winnebago, Rep. Brad Finstad and Brian Werner, MN Bio-Fuels

Rep. Brad Finstad (R-MN) recently visited ethanol producer Greenfield Global Winnebago to see the investments being made into one of the first dry mill ethanol plants built in Minnesota and discuss the various opportunities for future innovation in the state’s ethanol industry, according to the Minnesota Bio-Fuels Association (MN Bio-Fuels).

During the visit, MN Bio-Fuels and Greenfield Global Winnebago discussed with Finstad the challenges the ethanol industry is currently facing including the lack of a permanent nationwide legislative solution to enable the year-round sale of E15, also known as Unleaded 88.

Finstad is the lead author of legislation to extend the 1-psi Reid Vapor Pressure (RVP) waiver to E15 and allow its year-round, nationwide sale through the Year-Round E15 Act.

Other topics discussed included the implementation of Inflation Reduction Act (IRA) tax credits for low-carbon ethanol including the Clean Fuel Production Credit (45Z) and concerns from producers because official guidance for the 40B SAF tax credit was not released until 17 months after the credit went into effect. Finstad said he has urged the Treasury to remove uncertainties on how renewable fuel producers could qualify for the credits.

Ethanol, Ethanol News

USGC Leads Ethanol Exploratory Mission to China

Cindy Zimmerman

Ringneck Energy CEO Walter Wendland (third from right) at National Energy Administration (NEA) in Beijing

Representatives from the U.S. Grains Council (USGC) and the ethanol industry headed to China last month for an exploratory mission aimed at gaining critical insights into the country’s ethanol market and policy landscape.

Ringneck Energy CEO and USGC Ethanol Advisory Team member Walter Wendland was part of the mission. “China’s domestic ethanol industry coupled with supportive policies can play a key role in global biofuel expansion. By fostering stronger ties and cooperation, both countries can benefit from enhanced energy security and sustainability,” said Wendland. “As the U.S. ethanol industry continues to grow, a well-developed ethanol market in China will help pave the way for future win-win opportunities.”

Wendland joined Council staff based in its Beijing, China office to engage with various industry, academic and governmental stakeholders to deepen the understanding of China’s ethanol market, technology advancements and ongoing bilateral collaboration in renewable energy and biofuels. A highlight of the mission was a meeting with the National Energy Administration (NEA), China’s primary policymaker for renewable energy and biofuels sectors. During the meeting, the Council’s team shared updates on recent advancements in the U.S. ethanol industry, including supportive policies under the Inflation Reduction Act, and the growing global focus on biofuels and sustainable aviation fuel (SAF).

China announced its plan for a nationwide E10 mandate in 2017 by 2020, which was unofficially suspended in late 2020, leading to decreased blending rates in pilot regions. If China were to fully implement a national E10 program, it would require approximately five billion gallons of fuel ethanol, indicating significant market potential.

Ethanol, Ethanol News, Exports, International, USGC

Candidates Reveal Biofuel Stands in FB Survey

Cindy Zimmerman

The American Farm Bureau Federation asked Vice President Kamala Harris and former President Donald Trump about their priorities for American agriculture in a questionnaire that included their opinions on renewable fuels.

Farm Bureau asked the question, “As president, would you support an all-of-the-above strategy that encourages the domestic production and use of all available forms of energy?”

The Harris-Walz campaign response:
Vice President Harris cast the deciding vote to pass the Inflation Reduction Act, which provided nearly $10 billion for rural renewable energy infrastructure—and made the largest investment in rural electrification in nearly 90 years. This historic legislation also included more than $2 billion in investments for the Rural Energy for America program, which provides loans and grants to agricultural producers and rural small businesses to build renewable energy systems or to make energy efficiency improvements. The Inflation Reduction Act is also increasing domestic biofuels, boosting high-quality job opportunities across rural America and enlisting agriculture as a pivotal tool to fight climate change.

Former President Trump’s response:
Yes, a Trump Administration will increase domestic energy production across the board, streamline permitting, and end market-distorting restrictions on Oil, Natural Gas, and Coal. I will lower energy prices even below the record lows achieved during my first term. No president has ever fought harder for our farmers than I did. I issued a rule declaring that E15 would be made available all year round. In addition, I dramatically increased the number of fueling stations where E15 could be sold across the country, by letting them use the existing pumps. I will cancel every Kamala-Biden policy that is brutalizing our farmers. We won’t just increase Ethanol production in our own country, we will make it our mission to export ethanol all over the world.

Other topics on the questionnaire included crop insurance, taxes, labor, regulatory reform, international trade, sustainability, and biotechnology.

AFBF, Ag group, biofuels, Ethanol, Ethanol News

Gevo to Acquire Red Trail Energy Assets in North Dakota

Cindy Zimmerman

Net-zero hydrocarbon fuels leader Gevo this week announced the acquisition of the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy in North Dakota for $210 million.

In a conference call announcing the acquisition, Gevo CEO Dr. Patrick Gruber said it will provide an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota. “It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation,” said Gruber. “Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota.”

“We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS,” said Gevo President and COO, Dr. Chris Ryan. “We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.”

The transaction is expected to close by the first quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy’s equity holders and the procurement of financing for the acquisition. Gevo expects to finance the transaction with a combination of asset level debt and cash from the balance sheet.

Listen to Gruber and Ryan announce the acquisition on the conference call.
Gevo announces Red Trail acquisition (7:38)

Audio, aviation biofuels, Carbon, carbon capture, Ethanol, Ethanol News, SAF