USGC Shares Ethanol Benefits In Brazil

Cindy Zimmerman

U.S. Grains Council staff members traveled to São Paulo, Brazil last month for the BBEST–IEA Bioenergy 2024 Conference, with the goal of collaborating to find best solutions and techniques for responsible land use, biofuel uses in the transportation sector, agricultural productivity and more.

USGC Manager of Global Ethanol Policy and Sustainability Linda Schmid, Regional Ethanol Consultant Federico Salcedo and Ethanol Consultant Galo Galeana participated in event sessions and spoke with peer organizations about developing biofuels in emerging markets.

“Innovative technologies and climate smart practices enable U.S. farmers to sustainably produce bioethanol to supplement domestic production in emerging markets,” Schmid said. “By engaging with international stakeholders, policymakers and associations, the Council helps advance global biofuel adoption and increases demand for U.S. producers.”

Salcedo moderated a panel on grain and sugar-based biofuels and Schmid participated in the panel to speak about recent trends in ethanol consumption and applications.

Outside the general sessions, Schmid and Salcedo met with leading experts in the biofuels industry to explore collaborative opportunities for ethanol promotion, particularly regarding the upcoming United Nations Climate Change Conference (COP29) in Baku, Azerbaijan that Schmid will attend.

Brazil, Ethanol, Ethanol News, Exports, USGC

ZeaKal PhotoSeed is 1st Sustainability-Embedded Trait Tech

Cindy Zimmerman

ZeaKal today announced that PhotoSeed™ Soy has been validated as the first sustainability-embedded trait technology for agriculture, a technology that could expand the volume of sustainable aviation fuel (SAF) production by approximately one billion additional gallons on existing U.S. soybean acreage.

Han Chen, co-founder and CEO of ZeaKal, says they were able to validate PhotoSeed’s impact on the carbon intensity (CI) score of sustainable aviation fuel (SAF) from soybean oil by using well-respected analytic firm Foxley, LLC, which conducted an independent analysis according to multiple global standards and programs. “The data is also being reviewed by SCS Global Services, a leader in the field of sustainability standards and third-party certification,” said Chen. “The modelling shows that PhotoSeed can reduce SAF CI scores by up to 4.6 points.”

Chen says PhotoSeed enhances photosynthetic capacity, increasing soybean oil by 15% and protein by one point without compromising yield or requiring additional inputs. “At a time when the cost and scale for renewable fuels production still falls short of petrochemicals, we can leverage plant genetics to capture carbon and expand the volume of global oil production without needing new land or infrastructure. ZeaKal’s genetics and agricultural partnerships offer the energy industry economically feasible feedstocks with improved CI features in the production of SAF and other renewable fuels.”

Over the past several years, ZeaKal has built a harmonized supply chain for PhotoSeed soy, which includes Gro Alliance, Nutrien Ag Solutions, and Perdue AgriBusiness. The collaboration enables improved oil and protein production with improved sustainability features for the food and agriculture industry. With growing demand from energy, the initial three-million-acre East Coast footprint is an attractive source for low CI feedstock. PhotoSeed soybeans will be available for the 2026 growing season.

Chen adds that PhotoSeed’s verification as a technology pathway for reducing CI also opens opportunities across the company’s other crop programs, including corn and sugarcane. For ZeaKal’s key crop programs, the company forecasts that the global volume of SAF production could expand to 7.5 billion gallons per year.

Learn more in this interview with Chen:
ZeaKal CEO Han Chen 8:57

Audio, aviation biofuels, Biodiesel, biofuels, Ethanol, Ethanol News, SAF, Soybeans, sugarcane, Sustainability

USDA Announces $239 Million for Domestic Biofuels

Cindy Zimmerman

USDA this week announced the awarding of $39 million in grants to increase the availability of domestic biofuels in 18 states, and an allocation making $200 million available through the new Biobased Market Access and Development Grants from Commodity Credit Corporation (CCC) funds.

Deputy Secretary Xochitl Torres Small announced the awards and funding made possible through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Biobased Market Access and Development Program. “By increasing the supply of biofuels made here in the U.S., we are helping to lower costs for American families, strengthening our energy independence, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities.” Deputy Secretary Torres Small said.

Among the grants announced were nine Iowa fueling locations, which received nearly $3 million to offer consumers higher blends of biofuels like E15 and B20 across the state, according to the Iowa Renewable Fuels Association (IRFA).

“Consumers in Iowa come out winning when Iowa retailers choose to provide a homegrown, cleaner fuel option that leaves extra dollars in their pockets,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With Iowa’s cutting edge E15 Access Standard taking effect on January 1, 2026, there is plenty of time and resources to help Iowa retailers meet the deadline. The momentum for the USDA grants is rolling and USDA should not hit the brakes now. As congressional funding for HBIIP has run out, IRFA encourages the USDA to use discretionary funds to keep the grant awards going until Congress can refund HBIIP in the next Farm Bill.”

The other states receiving a share of grants were Arkansas, California, Florida, Illinois, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.

Some of the projects being funded include:
– Connor’s Service Station in Webster, Wisconsin, which will use a grant of more than $445,000 to install two E15 fuel dispensers, two B20 dispensers, one ethanol storage tank and one biodiesel storage tank. The project is expected to increase the amount of biofuel sold by nearly 224,000 gallons per year.
– Fleet Fueling of Michigan LLC will use a $4.2 million grant to install 16 E15 fuel dispensers, 16 E85 dispensers, 30 B20 dispensers, seven ethanol storage tanks and 14 biodiesel storage tanks at seven fueling stations in Eaton, Ingham and Clinton counties. The company expects that the project will increase the amount of biodiesel sold by 2.5 million gallons per year.
– NUVU Fuels Florida LLC will use a $150,000 grant to install four E85 dispensers and four E15 dispensers at a fueling station in Sarasota. Through this project, the company expects to increase the amount of ethanol sold by nearly 178,000 gallons per year.

USDA will use previously transferred CCC funds to create the Biobased Product Market Development and Access Grant Program to support innovative biobased technologies and bridge the gap between pilot-scale demonstrations and commercial viability. The funding will be available to applicants who have been accepted into the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program (Section 9003), which is administered by Rural Development. The $200 million program is being funded through the reallocation of unobligated CCC funds from 2020.

Biodiesel, biofuels, E15, E85, Ethanol, Ethanol News, USDA

Apply Now for National Ethanol Conference Scholarships

Cindy Zimmerman

Applications are now being accepted by the Renewable Fuels Foundation for scholarships to attend the annual National Ethanol Conference, taking place Feb. 17-19 in Nashville, Tenn. College students and members of RFA’s Young Professionals Network are eligible for the scholarships that cover the convention registration fee, hotel, and up to $500 in airfare.

Now in its 16th year, the program is named in honor of Robert “Bob” Sather, an educator who helped found RFA member company Ace Ethanol in Wisconsin. Sather was a past Chair of the Renewable Fuels Foundation. The aim of the Bob Sather Memorial Scholarship is to reach young adults aspiring to a career related to ethanol and open doors and present new perspectives on ethanol’s place in our world today and beyond. The program provides eligible applicants with opportunities to hear from, and engage with, top industry leaders, policymakers, and academic and technical experts.

“We’re happy to be able to again provide scholarships to help introduce a new generation to the ethanol industry via time spent at the country’s top ethanol industry event,” said Neal Kemmet, chairman of the Renewable Fuels Foundation and president and general manager for Ace Ethanol. “Students and young professionals will have an excellent opportunity to learn and network as they prepare for meaningful careers tied to renewable fuels. We strongly recommend this program to any student studying in ethanol-related fields, and to any young professional in the industry.”

A limited number of scholarships will be awarded. Interested college students are asked to submit a 500-word essay explaining how their attendance at the NEC will help them achieve future goals. They should also submit a letter of recommendation and an up-to-date resume. Interested members of YPN need to complete the application questions and provide a resume and letter of recommendation from a supervisor or someone else familiar with their qualifications. YPN scholarships are limited to one per company.

Click here for complete application details and to apply. Applications are due January 9.

Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

CoBank Report Studies Future for SAF

Cindy Zimmerman

CoBank image

A new CoBank Knowledge Exchange report on Charting the Path Forward for SAF finds sustainable aviation fuel provides great opportunity for growth in U.S. biofuels production from agricultural feedstocks, as long as the market and regulatory incentives are there for farmers and the wider biofuels industry.

According to the report, the anticipated guidance for the 45Z tax credit, also known as the Clean Fuel Production Credit, will be the major determining factor for the extent of agriculture’s role in SAF production, replacing the 40B tax credit for SAF production.

“The 40B tax credit guidance for SAF fell short in effectively incentivizing farmers to adopt the prescribed set of on-farm conservation practices required to be eligible for the credit,” said Jacqui Fatka, farm supply and biofuels economist with CoBank. “Farmers are hoping the new guidance offers more flexibility to employ practices that are applicable to their individual operations. The 40B guidance reflected a one-size-fits-all approach, which is certainly not the case for farms spanning the entire country.”

While the 45Z tax credit is set to take effect on Jan. 1, 2025, the final guidance has yet to be issued causing uncertainty for farmers, biofuel producers and other market participants. “Biofuel producers are unlikely to move forward on any expansion plans until the new guidance is published,” said Fatka. “And the delay creates more uncertainty for farmers as they make decisions about planting, input purchases and conservation programs for 2025.”

Read the report.

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF

California Governor Puts E15 in the Fast Lane

Cindy Zimmerman

California Governor Gavin Newsom on Friday gave a surprise boost to the ethanol industry by issuing a directive to the California Air Resources Board (CARB) to accelerate studying how California could increase ethanol blending in gasoline to allow the sales of E15.

“There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump,” said Newsom.

The Renewable Fuels Association immediately praised Gov. Newsom for taking this action since California is the only state in the country that bans the sale of lower-cost, lower-carbon E15. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump,” said RFA President and CEO Geoff Cooper. “Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.”

Gov. Newson cited a recent study conducted by the University of California, Berkeley and the United States Naval Academy, showing that just allowing the sale of E15 could lower gas prices in California by up to $0.20 per gallon and save Californians as much as $2.7 billion annually. That study was sponsored by the Renewable Fuel Association. “Consumers would save about $200 per household there,” said RFA Chief Economist Scott Richman who contributed to the study. “And it would be low income households that would benefit the most from this.”

Listen to an interview with Richman about the study:
RFA Chief Economist Scott Richman 6:38

Audio, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Bill Would Extend 45Z Tax Credit

Cindy Zimmerman

The 45Z clean fuel production tax credit would be extended by ten years under legislation introduced this week by Reps. Brad Schneider (D-IL), Dan Kildee (D-MI) and Julia Brownley (D-CA).

The tax credit, created under the Inflation Reduction Act, is slated to start in 2025 and expire in 2027, even though no rules have been developed for it yet. The Expanding Clean Fuel Production Act would extend the credit for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF), through 2037.

“A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels,” said Rep. Schneider who authored the tax credit for the production of SAF which was included in the Inflation Reduction Act in 2022 and aims to halve carbon emissions in the aviation sector.

The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Rep. Schneider authored with Reps. Kildee and Brownley in 2021. The credit was ultimately enacted in the Inflation Reduction Act in 2022, will transition into the CFPC in 2025, and will expire in 2027. SAF producers are eligible for a tax credit of $1.25 to $1.75 per gallon.

Alison Graab, Executive Director of the SAF Coalition, said they look forward to working with Congress extending as well as strengthening the incentive. “Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”

aviation biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF, Sustainability

Ethanol Report on Supply and Demand

Cindy Zimmerman

Despite California’s best efforts to work against low carbon ethanol by not allowing sales of E15 and proposing unworkable new sustainability requirements for the future, supply and demand for U.S. ethanol continues strong.

In this edition of The Ethanol Report podcast, Renewable Fuels Association Chief Economist Scott Richman discusses concerning proposed regulations to California’s Low Carbon Fuel Standard, strong supply and demand numbers for 2024, and surging exports of both ethanol and the co-product Distiller’s dried grains with solubles (DDGS).

Ethanol Report 10-23-24 21:24

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.

Choose an option to subscribe

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

Supreme Court to Decide on EPA SRE Case Venue

Cindy Zimmerman

The Supreme Court will determine whether the D.C. Circuit Court of Appeals is the only proper court to litigate challenges to small refinery exemptions, a decision welcomed by biofuel advocates.

At issue is whether the venue for challenges by small oil refineries seeking exemptions from the requirements of the Clean Air Act’s Renewable Fuel Standard program lies exclusively in the U.S. Court of Appeals for the District of Columbia Circuit because the agency’s denial actions are “nationally applicable” or, alternatively, are “based on a determination of nationwide scope or effect.”

The Renewable Fuels Association and Growth Energy issued a statement saying, “The Fifth Circuit was clearly an improper venue to hear challenges on small refinery exemptions. Because the Fifth Circuit opinion set up a clear split with several other Circuit courts on the question of venue, this is precisely the sort of issue that the Supreme Court is meant to resolve. The Court has agreed, and we look forward to participating in the case and having this issue settled once and for all.”

“The refining community’s abuse of small refinery exemptions destroys demand for biofuels nationwide, which negatively impacts farmers and bioethanol producers regardless of where they operate. The economic and environmental impact of this abuse does not recognize state lines. The decision in this case should strengthen the RFS by giving biofuel producers and their farm partners the certainty they deserve.”

EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

New Ethanol Infographics from Grains Council

Cindy Zimmerman

The U.S. Grains Council (USGC) has released a series of infographics to promote the benefits of biofuels, an explainer on various sustainability benchmarks for sustainable aviation fuel (SAF), and an update on global ethanol blending policies.

The Council seeks to show international policymakers and industry stakeholders that U.S. ethanol is an affordable, abundant, compatible and sustainable way for countries to meet their carbon reduction commitments. The Council’s infographic reflecting these qualities serves as a simple yet effective reminder to customers about why U.S. ethanol is the right choice.

These infographics, along others related to commodity uses, export data from marketing year 2023/2024 and more, are available for download on the Council’s website.

biofuels, Ethanol, Ethanol News, SAF, USGC