Ethanol Groups Comment on CAFE Review

Cindy Zimmerman

Ethanol groups filed comments Friday with the National Highway Traffic Safety Administration (NHTSA) on the intention to analyze potential environmental impacts of new Corporate Average Fuel Economy (CAFE) standards for model year (MY) 2022-2025 light-duty vehicles.

The Renewable Fuels Association submitted a letter and literature survey of technical papers and studies on the benefits of ethanol-based High Octane Fuel, noting that broader availability of such fuel would help automakers increase engine compression ratios without making costly hardware changes. Read the letter

Growth Energy also submitted comments supporting the use of high-octane, midlevel ethanol blends to achieve higher energy efficiency standards.

“It has long been recognized that vehicles and fuels operate as a system, and to undertake significant changes and increases in the stringency of tailpipe GHG standards without an examination of potential changes in the fuel used by these vehicles makes little sense,” Growth Energy Vice President of Regulatory Affairs Chris Bliley said. “Policymakers should examine the literature about the benefits of using a high-octane midlevel ethanol blend in conjunction with modern engines to achieve future fuel economy and greenhouse gas emission standards.”

Friday was the end of the public comment period on the notice which initiates the process for determining the scope of considerations to be addressed in the environmental impact statement and for identifying any significant environmental matters related to the proposed action.

Ethanol, Ethanol News, Growth Energy, RFA

Retailers Give Ethanol Industry Advice

Cindy Zimmerman

Ron Lamberty, ACE; Bob O’Connor, JETZ; Charlie Bosselman, Bosselman Enterprises

A panel featuring higher ethanol blend retailers was a highlight of the American Coalition for Ethanol (ACE) 30th annual conference in Omaha last week.

Charlie Bosselman, owner of Nebraska-based Bosselman Enterprises and Pump & Pantry c-stores, and Bob O’Connor, owner of JETZ Convenience Centers in Milwaukee, Wisconsin, shared their insights on how the ethanol industry can help retailers add E15 and higher blends in the discussion moderated by ACE senior vice president Ron Lamberty. “We can come up with all kinds of programs that we think will move more ethanol, but we make the most progress when retailers tell us what they’ve learned and what they need from us,” Lamberty said.

“I think ethanol has a great story,” O’Connor said. “You get more power, more performance, it’s local, and it’s cheaper. We’re all in the business to make money, and ethanol gave us an initial profit center.”

Bosselman echoed O’Connor in addressing why they got involved. “The simplest reason was to make money,” Bosselman said. “There are a lot of benefits that come with that—our ability to market the fuel, tell a story to our customers—especially since we are in rural communities—about us and ethanol and the products that they grow on their farm and how it’s all intertwined together.”

After the panel, Lamberty presented Bosselman with the Paul Dana Marketing Vision award, which is presented to an individual or company that has exhibited leadership in ethanol marketing.

“ACE members recognize Bosselman Enterprises for leadership in committing to offer consumers choice at the pump, including the sale of higher blends like E15 and E85,” Lamberty said.

Listen to the panel discussion here: Retail: Ethanol's Point of Opportunity

2017 ACE Conference Photo Album

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News, Retailers

NFU Announces Biofuels Initiative

Cindy Zimmerman

National Farmers Union (NFU) has announced an initiative “to advance federal policies that support homegrown and home-produced renewable energy sources.”

“American family farmers and ranchers are facing a rapidly changing climate, a severely depressed farm economy, and deteriorating rural infrastructure and services,” said NFU President Roger Johnson during a press call to announce the effort. “Expansion of homegrown, renewable energy production provides solutions to each of these issues and significant benefits for American consumers and the environment.”

NFU hired energy policy specialist Anne Steckel, formally with the National Biodiesel Board, to lead the effort. “Federal-level policies like the Renewable Fuel Standard have reaped tremendous gains for the farming and rural communities that grow and produce renewable, bio-based fuels,” said Steckel. “NFU will continue its avid support of the RFS and pursue innovative policy solutions that expand renewable energy demand, development and infrastructure.”

The effort follows a special order of business that was passed by delegates to the NFU 115th Anniversary Convention in March supporting expanded markets for higher blends of ethanol, like E30, and advanced biofuels. NFU’s initiative is supported by all three major ethanol organizations.

NFU press conference
Audio, Ethanol, Ethanol News, NFU

Brazil Tweets Tariff Decision

A tweet from Brazilian Minister of Agriculture, Livestock and Supply Blairo Maggi late yesterday afternoon informed the world that Brazil’s foreign trade chamber has approved a 20 percent tariff on U.S. ethanol imports after a 600 million liter tariff rate quota.

The Renewable Fuels Association (RFA), U.S. Grains Council (USGC) and Growth Energy issued a joint statement on the decision.

“We are disappointed and discouraged to see the ruling out of Brazil today imposing a tariff on U.S. ethanol. Given the tremendous volume of information we provided to Brazil that demonstrated how misguided a tariff would be, it seemed politics prevailed today and Brazilian consumers lost. Imposing tariffs on U.S. ethanol imports will hurt Brazilian consumers by driving up their costs at the pump. Additionally, this action goes against Brazil’s longstanding view that ethanol tariffs are inappropriate and will effectively close off an open and bilateral trading relationship that benefits all sides. We strongly urge this recommendation to be reversed as soon as possible and will work to that end through all available pathways.”

RFA CEO Bob Dinneen (@ethanolbob) had his own tweet in response to the decision:
“Brazil just hurt their own consumers by imposing a quota and tariff on US #ethanol – the lowest cost octane on the planet. #foolish”

AgWired Energy, Ethanol, Growth Energy, RFA, Trade, USGC

Japan Ag Ministry Rep Visits MN Ethanol Plant

Cindy Zimmerman

Kimihiko Eura, Japan’s Ministry of Agriculture; Tim Rudnicki, Minnesota Bio-Fuels Association: Randall Doyal, CEO of Al-Corn Clean Fuel

The Deputy Director for Food Security at Japan’s Ministry of Agriculture, Forestry and Fisheries toured Guardian Energy in Minnesota this week as part of a five-day visit to learn about the state’s agriculture industry hosted by the Minnesota Corn Growers Association.

During the tour, Kimihiko Eura learned about incoming grain handling, grain storage, liquefaction, fermentation, distillation, dried distillers grains (DDGs), corn oil, ethanol shipment and exports at Guardian Energy. “We are interested in learning how ethanol is produced and its impact on the demand and supply of corn. We are also looking at the possibility of importing DDGs to Japan,” Eura said. His visit to Guardian Energy was his first time at an ethanol plant since Japan has none.

Ethanol, Ethanol News, International

Commerce Dept Finds Unfairly Subsidized Biodiesel Exports

Cindy Zimmerman

The preliminary determination of the U.S. Department of Commerce is that exporters of biodiesel from Argentina and Indonesia did receive “countervailable subsidies” and may allow for collection of retroactive duties.

“The U.S. values its relationships with Argentina and Indonesia, but even friendly nations must play by the rules,” said Commerce Secretary Wilbur Ross. The department determined that both countries subsidized exports by as much as 68 percent, and that “critical circumstances exist” that would pave the way for imposing duties going back to May 2017.

“The Commerce Department has recognized what this industry has known all along—that foreign biodiesel producers have benefited from massive subsidies that have severely injured U.S. biodiesel producers,” said Doug Whitehead, chief operating officer of the National Biodiesel Board, on behalf of the NBB Fair Trade Coalition.

As a result of Commerce’s ruling, importers of Argentinian and Indonesian biodiesel will be required to pay cash deposits on biodiesel imported from those countries once the preliminary determination is published in the Federal Register sometime next week and rates for Argentina will apply retroactively 90 days from the date of the notice. Imports of biodiesel from Argentina again jumped 144.5 percent following the filing of the petitions.

Renewable Energy Group (REG), the nation’s largest biodiesel producer, called the preliminary determination a victory. Interim President and CEO Randy Howard issued the following statement after the announcement:

“This should give American biodiesel producers the opportunity to make more cleaner-burning advanced biofuel here at home,” said REG Interim President and CEO Randy Howard. As we and others have testified to the EPA and the Administration during the public comment period on the RVO’s earlier this month, our domestic industry can easily increase production to match volumes similar to what we have seen from Argentina and Indonesia.”

Biodiesel, Trade

Shifting to High Octane Ethanol Future

The American Coalition for Ethanol (ACE) annual conference last week included a panel on shifting to high-octane fuel.

First, Trey Binford, product manager of North America Dispensers at Wayne Fueling Systems, discussed the infrastructure component. He explained why Wayne differentiated itself as the first equipment manufacturer to exclusively offer fuel dispensers UL-listed for E25 to gasoline retailers in North America.

Brian West with the Fuels, Engines and Emissions Research Center at Oak Ridge National Laboratory shared the testing underway on engines to help demonstrate the benefits of high-octane fuel to help automakers meet fuel economy and greenhouse gas (GHG) reduction targets.

Finally ACE members heard from Adam Gustafson, partner at Boyden Gray & Associates, who is helping lead an effort to enable automakers and consumers to experience the benefits of high-octane fuel.

ACE Executive Vice President Brian Jennings moderated the panel discussion – listen to it here: ACE Conference Octane Panel

2017 ACE Conference Photo Album

ACE, AgWired Energy, Audio, Ethanol

Brazil Corn Ethanol Plant Starts Production

Cindy Zimmerman

FS Bioenergia, Brazil’s first large-scale corn ethanol production facility, is officially in production.

The plant, located in Lucas do Rio Verde, Mato Grosso, is the result of an international collaboration between Brazilian agribusiness Fiagril and U.S.-based Summit Agricultural Group headquartered in Alden, Iowa.

In its initial phase of operations, FS Bioenergia will annually process 22 million bushels of corn and produce more than 60 million gallons of corn ethanol, 6,200 tons of corn oil and 170,000 tons of valuable feed rations for Brazil’s growing livestock industry. By 2018, FS Bioenergia’s second phase of operations will increase corn processing and ethanol production two-fold.

The plant will help supplement existing sugarcane ethanol production to meet the country’s increasing demand for domestic ethanol by using Mato Grosso region’s substantial corn production. In addition, the plant’s co-product of dried distillers’ grains (DDGs) will serve as high-value feed for the expanding Brazilian livestock industry.

Summit Agricultural Group and Fiagril broke ground on the corn-only ethanol production facility in early 2016 and utilized process technologies from ICM, Inc.

Brazil, corn, Ethanol, Ethanol News

Novozymes Brings Advanced Enzymes to European Ethanol Market

Cindy Zimmerman

Novozymes has launched Spirizyme® 2.0 T and Spirizyme Ultra T glucoamylase enzymes with trehalase for the European ethanol market. The products, which are part of the Spirizyme T Portfolio to deliver increased yield and sugar conversion, were introduced earlier this year for the U.S. market.

Trehalose, a type of sugar that is normally left unfermented in a standard ethanol plant, is targeted by the trehalase enzyme to produce glucose, which is then fermented to ethanol. Trehalose makes up a significant part of the ‘DP2 peak’, which is a measure of disaccharides and contributes to the overall residual sugar in an ethanol plant. The more DP2 an ethanol plant can convert, the more ethanol it will produce.

Source: Novozymes press release

enzymes, Ethanol, Ethanol News, Novozymes

Moving More Ethanol Exports

U.S. ethanol exports are setting records this year and that is due at least in part to the efforts of the U.S. Grains Council ethanol advisory team, chaired this year by Jim Glavin, CEO of Lakeview Energy.

Galvin spoke at the American Coalition for Ethanol (ACE) annual conference last week in Omaha about some of the global headwinds and tailwinds for exports. “Number one, we’re looking at trying to double exports,” said Galvin, noting the industry is expanding at a rate of about three percent a year.

At the same time, Galvin says the U.S. ethanol industry has lately become a victim of its own export success, with major markets like China and Brazil restricting imports this year.

Listen to Galvin’s presentation and interview below.

Audio files:
Interview with Jim Galvin, Lakeview Energy

Jim Galvin, Lakeview Energy, remarks

2017 ACE Conference Photo Album

ACE, AgWired Energy, Audio, corn, Ethanol, USGC