Monday Meeting Creating a Buzz in Biofuels

Cindy Zimmerman

With another White House meeting about the price of Renewable Identification Numbers (RINs) now scheduled for Monday, the biofuels industry is getting the word out about how capping prices of RINs would devastate the Renewable Fuel Standard (RFS).

Former Renewable Fuels Association chairman Randy Doyal, CEO of Al-Corn Clean Fuel in Claremont, Minnesota says the industry as a whole is opposed to putting a cap on the price of RINs, which would only help oil refiners. “What’s being proposed is not really a cap on price, it sets the price for buying a waiver,” says Doyal. “Those refiners that don’t want to blend, that aren’t doing it now, that gives them the ability not to. It doesn’t create demand, it destroys it.”

Listen to an interview with Randy here: Interview with Randy Doyal, Al-Corn Clean Fuel

The Iowa Renewable Fuels Association has set up multiple press events at ethanol plants around the state today and a rally tomorrow at the farm of Bill Couser in Nevada, Iowa.

Audio, Ethanol, Ethanol News, RFA, RFS, RINS

New Bill Takes Aim at Ethanol and Biodiesel

Cindy Zimmerman

Legislation to change or repeal the Renewable Fuel Standard usually targets conventional ethanol, but companion bills introduced in Congress this week hit soy biodiesel as well.

Rep. Peter Welch (D-Vt.) and Senator Tom Udall (D-N.M.) introduced the GREENER Fuels Act (Growing Renewable Energy through Existing and New Environmentally Responsible Fuels Act). The legislation is backed by former Rep. Henry Waxman, who now chairs an environmental group called Mighty Earth, and claims “conventional biofuels like corn ethanol and soy biodiesel are destroying wildlife habitat at home and abroad, polluting waterways, and increasing global warming pollution.”

“As representatives of the nation’s leading advanced biofuel, we appreciate Senator Udall’s commitment to environmental stewardship but have concerns with his proposal. It is based on a series of now-debunked studies and fails to recognize the environmental and economic benefits of utilizing homegrown renewable energy,” said Kurt Kovarik, vice president of federal affairs at the National Biodiesel Board. “Biodiesel reduces lifecycle greenhouse gas emissions by anywhere from 57 to 122 percent compared to petroleum diesel, so we would hope that any effort to reform the RFS would continue the growth of clean-burning alternatives to petroleum diesel, like biodiesel.”

The bill would cap the amount of ethanol that can be blended into conventional gasoline at 9.7 percent, even though it is currently more than 10 percent. “If this strange and unserious legislation ever became law it would have the opposite of its intended effect,” said American Coalition for Ethanol CEO Brian Jennings. “Dismantling the RFS in this way would increase pump prices and greenhouse gas emissions.”

National Corn Growers Association president Kevin Skunes disputes the bills’ premise that corn ethanol is harming the environment. “Ethanol production is not significantly impacting land use. In fact, planted corn acres were lower in 2017 than when the RFS was expanded in 2007, yet we produced significantly more biofuels,” said Skunes.

ACE, Biodiesel, biofuels, corn, Ethanol, Ethanol News

Ethanol Production Going Strong

Cindy Zimmerman

For the first month of 2018, the amount of corn used to make ethanol in the U.S. was down two percent from December 2017 but up one percent from January 2017, according to the latest USDA Grain Crushings and Co-Products Production report.

Corn use for fuel alcohol totaled 476 million bushels in January 2018 with dry milling fuel production and wet milling fuel production at 90.6 percent and 9.4 percent respectively.

The World Agricultural Supply and Demand Estimate out for this month is forecasting a smaller corn crop this year with less acres but higher yields. Corn used to produce ethanol is raised 50 million bushels to 5.575 billion based on the most recent data from the Grain Crushings and Co-Products Production report and pace of weekly ethanol production during February, as indicated by Energy Information Administration data.

Weekly ethanol production this year is maintaining at just over a million barrels per day, according to the latest Energy Information Agency (EIA) data analyzed by the Renewable Fuels Association.

For the last week of February, ethanol production averaged 1.057 million barrels per day, or 44.39 million gallons daily, up 12,000 b/d from the week before. The four-week average for ethanol production was unchanged at 1.046 million b/d for an annualized rate of 16.04 billion gallons.

corn, Distillers Grains, Ethanol, Ethanol News, USDA

E15 Now Available at 158 Iowa Stations

Cindy Zimmerman

Iowa has added a dozen new E15 stations since the end of 2017, bringing the total statewide to 158 fueling stations.

Iowa-based Casey’s General Store added the most new stations, including locations in Sioux Center, Akron, Cedar Rapids, and Lone Tree. Kum & Go, Kwik Star, and Key Cooperative each added two new stations at various locations across the state. The last two were added by Sparky’s One Stop in Jefferson and KCK Food & Fuel in Schleswig.

“This time a year ago, Iowa didn’t even have 100 E15 stations,” said Iowa Renewable Fuels Association Managing Director Lucy Norton. “It is remarkable to watch this cleaner, higher-performing fuel gain momentum and support among drivers and retailers. Americans have already driven over three billion trouble-free miles on E15.”

E15, Ethanol, Ethanol News, Iowa RFA

Auto Expert Shares Thoughts on Ethanol at NEC

Carrie Muehling

Participants at the 2018 National Ethanol Conference heard from renowned auto expert and commentator Marc Rauch, Executive Vice President and Co-Publisher of TheAutoChannel.com, on his efforts to educate the auto community and beyond on the use of ethanol in vehicles.

Rauch shared a history of ethanol use around the world and myths that have been spread to negatively impact the fuel’s usage.

“The same oil industry that has been badmouthing ethanol for all these years and standing in the way and using all of their money to sidetrack ethanol from greater acceptance and all of these things is nonsense because the oil industry itself has said ethanol blends are the best fuel for internal combustion engines,” said Rauch.

Listen to the session with Marc Rauch from the National Ethanol Conference here: Marc Rauch, The Auto Channel

2018 National Ethanol Conference Photo Album

Audio, Ethanol, National Ethanol Conference

Rail Issues Impacting Your Business

Carrie Muehling

Rail continues to safely and efficiently serve as ethanol’s “virtual pipeline.” A panel discussion during the 2018 National Ethanol Conference focused on the important role rail transportation plays in the ethanol industry, including updates on regulatory developments, safety issues, and railcar fleet trends.

The panel included moderator Kelly Davis, Vice President of Regulatory Affairs, Renewable Fuels Association; Mark Maday, Staff Director, Hazardous Materials Division, Federal Railroad Administration; Gino Smith, Q\A HazMat Specialist, AllTranstek; and John Kennedy, Senior Vice President, Field Operations, Rescar.

Listen to the panel from the National Ethanol Conference here: Rail Issues Impacting Your Business

2018 National Ethanol Conference Photo Album

Audio, Ethanol, National Ethanol Conference, Renewable Fuels Association, transportation

“Diesel Brothers” are Biodiesel Hit at #Classic18

Cindy Zimmerman

The DieselSellerz, stars of the Discovery Channel show “Diesel Brothers” were a big hit at the Commodity Classic last week as they unveiled their latest creation – a fully customized, biodiesel powered, Ford F550 Powerstroke diesel.

The truck was built in partnership with the Minnesota Soybean Research and Promotion Council as a way to highlight biodiesel as a commercial fuel available to consumers nationwide and was on display during the Commodity Classic at the Anaheim convention center in the National Biodiesel Board booth.

Minnesota soybean farmers Pat Sullivan, Kris Folland and Craig Bangasser became part of filming for Discovery’s “Diesel Brothers” show over the past year and helped the brothers from the DieselSellerz unveil the long-awaited Minnesota biodiesel truck

The truck was designed from a Ford platform using OEM drivetrain parts and fueling systems that already support the use of the alternative fuel in regular applications.

The episode of Diesel Brothers that will feature the truck is tentatively scheduled to air later this spring on the Discovery Channel.

Biodiesel, Commodity Classic, NBB

Ethanol and DDGS Exports Fall in January

Cindy Zimmerman

U.S. ethanol exports dropped by half in January compared to December’s record high, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA).

January ethanol exports totaled 88.3 million gallons (mg), the lowest volume in four months. Despite the imposition of a tariff rate quota and 20% tariff in September, Brazil was the leading destination for U.S. ethanol exports for the third straight month at 40.7 mg. Canada was the second-leading market at 19.9 mg, which was down 14% from December. With nearly 70% of U.S. ethanol exports destined for Brazil and Canada, shipments to the rest of the world shrank significantly from December.

Exports of dried distillers grains with solubles (DDGS) were down 7% in January to 898,940 metric tons (mt). Down 10 percent from December, Mexico remained the top customer as one-fifth of total exports while Thailand increased its imports of U.S. DDGS by 1%, enough to secure second place in January. Turkey increased its imports of U.S. DDGS by 19%, South Korea dropped 43% to the smallest volume in five months, and Indonesia imported 13% less U.S. product. Vietnam dropped 37% and out of the top five markets following a quarter of strong export demand.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Nearly 50,000 Iowa Jobs Tied to Biofuels

Cindy Zimmerman

A new study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association (IRFA), finds that nearly 50,000 Iowa jobs are supported by biofuels production. IRFA Executive Director Monte Shaw says the study indicates how many livelihoods are at stake in the continuing efforts by Texas Senator Ted Cruz to convince the White House to undermine the Renewable Fuel Standard (RFS) for the sake of oil refiners.

“Undermining the RFS will not save one refinery job in Pennsylvania, but as this study reminds us, it could push thousands of farm families over the economic cliff,” Shaw said. “Embracing Senator Cruz’s anti-RFS proposals would be a complete abdication of President Trump’s pledge to voters to defend the RFS. We are confident that facts, common sense, and past commitments will carry the day.”

In addition to supporting 50,000 jobs in Iowa, the study found that in 2017 the renewable fuels industry in Iowa generated more than $2.4 billion in household income for Iowans and accounted for $5.0 billion, or 3.4 percent, of Iowa GDP.

Ethanol, Ethanol News, Iowa RFA, RFS, RINS

Ethanol Plant Managers Write President

Cindy Zimmerman

Managers at 150 U.S. biofuel refineries across the heartland have sent a letter to President Donald Trump, urging him to “stand strong in defense of the Renewable Fuel Standard (RFS).”

The plant managers, which represent the majority of U.S. ethanol production, address proposals by oil refinery supporters to “cut, cap, or eliminate” Renewable Identification Numbers (RINs), which they say “would eliminate market access for higher ethanol blends, and they are deal-killers for rural America.”

“The campaign against RINs is based on fairy tales, designed to justify handouts for the same folks who raided corporate funds at the expense of local workers in Philadelphia,” Growth Energy CEO Emily Skor said. “Instead of pitting their own workers against rural jobs, refinery owners should be talking about pro-growth options, like lifting needless limits on summertime sales of E15.”

“Just last evening, USDA Secretary Sonny Perdue again affirmed the administration’s support for a robust RFS,” said Renewable Fuels Association (RFA) President and CEO Bob Dinneen. “The U.S. ethanol industry is asking the President to continue honoring his commitment to Rural America by rejecting efforts by Sen. Cruz to destruct renewable fuel demand and harm consumers across this country.”

In addition to today’s effort, military veterans working in the ethanol industry sent President Trump a letter last year at this time, reminding him that his “continued commitment to the RFS and pledge to ‘end restrictions that keep higher blends of ethanol from being sold’ are among the strategies that will help free our economy from the influence of OPEC oil ministers once and for all.”

Ethanol, Ethanol News, Growth Energy, RFA, RFS, RINS