Industry Preparing for August 1 EPA Hearing

Cindy Zimmerman

The Environmental Protection Agency (EPA) will hold a public hearing in Washington, DC on Tuesday, August 1 for the recently released proposed rule for volume levels of ethanol and biodiesel under the Renewable Fuel Standard for 2018 and 2019.

As with previous RFS hearings, all of the major stakeholders are planning to attend and let EPA know what they like and don’t like in the proposed volume obligations. During an appearance on E&E’s OnPoint Thursday, Renewable Fuels Association president and CEO Bob Dinneen said they are pleased that the proposal maintains the 15 billion gallons for the corn ethanol biofuels category, but they do believe the industry is capable of producing more advanced biofuels than the reduced amount EPA is proposing.

“This reduces the number from 311 million gallons for cellulosic last year to 238 million gallons, but only 17 million gallons is assumed to be cellulosic ethanol,” said Dinneen. This assumes no growth at all in cellulosic ethanol from existing facilities with corn fiber technology, but Dinneen says more plants are planning expansions based on that new technology.

“I think we’ve got to better understand where EPA is coming from and better educate them as to the potential for growth….and I think that there’s still some room before a final rule to educate them as to what the potential truly is,” said Dinneen.

advanced biofuels, Cellulosic, EPA, Ethanol, Ethanol News, RFA, RFS

Imports of U.S. Ethanol to Brazil Soar

Cindy Zimmerman

As Brazil continues to consider tariffs on imported ethanol from the United States, the country just keeps importing more, remaining by far the top destination in the world for U.S. ethanol.

According to government data analyzed by the Renewable Fuels Association (RFA), Brazil imported 64.3 million gallons (mg) of U.S. ethanol in May, bringing the total for the first five months of this year to 255 mg of U.S. ethanol, compared to 279 mg for the entire 2016 calendar year. Second place Canada imported less than half the amount Brazil did in May at 31.3 mg of U.S. ethanol.

U.S. ethanol exports totaled 119.2 million gallons (mg) in May, up 37% from April shipments. Year-to-date U.S. ethanol exports stood at 594 mg through May, indicating an annualized export total of 1.43 billion gallons.

Meanwhile, the U.S. brought in 9.6 mg of fuel ethanol in May from Brazil—the first time since August 2016 that any meaningful import volumes have been recorded.

Ethanol, Ethanol News, Exports

Bayer Showcases InVigor® Canola Hybrids

The canola was in full bloom for the Bayer Showcase Plot Tour this week in North Dakota, soaking up the spotlight on the latest InVigor® canola hybrids.

U.S. InVigor Sales Lead Kristie Sundeen says the Liberty Link trait canola hybrid just celebrated 20 years on the market and the most recent hybrids with pod shatter reduction technology are gaining in popularity. “It keeps the canola from shattering as we get closer to harvest, so it allows for straight cutting canola,” said Sundeen. “Probably 50 percent of our market has switched from swathing to straight cut.”

Sundeen says this year they have been working on trials to evaluate the agronomics of the InVigor hybrids. “We have two locations looking into everything from the seed size to seeding depth, to hybrid evaluation, seeding rates, a little bit of everything.”

Learn more about Bayer InVigor® canola hybrids in this interview: Interview with Kristie Sundeen, Bayer, InVigor Canola

Bayer Showcase Plot Tour – North Dakota Photo Album

AgWired Energy, AgWired Precision, Audio, Bayer, canola

Happy 5th Birthday E15

Cindy Zimmerman

Scott Zaremba at his Lawrence, Kansas station – July 10, 2012

It was five years ago this week that Scott Zaremba, owner of Zarco 66 in Kansas, made history by becoming the first retailer in the nation to offer 15% ethanol (E15) for sale to motorists. Since that time, the growth of E15 availability has expanded, with nearly 900 stations in 29 states currently offering the fuel blend.

“Thanks in part to the U.S. Department of Agriculture’s Biofuels Infrastructure Partnership Program and the industry-funded Prime the Pump initiative, more and more stations are offering E15,” said Renewable Fuels Association President and CEO Bob Dinneen. Since 2012, Dinneen says more than 1 billion miles have been driven on the fuel without a “single verified case of misfueling, “engine damage,” or inferior performance” reported.

He adds that even greater E15 expansion will occur once retailers can sell E15 year round, instead of being prohibited from selling it in more than two-thirds of the nation’s gasoline market during the summer ozone control season, as legislative and regulatory fixes continue to be pursued.

E15, Ethanol, Ethanol News, RFA

Helio Celebrates Win at Iowa Corn 300

Helio Castroneves celebrates Iowa Corn 300 win with Iowa corn growers

The IndyCar spotlight was on Helio Castraneves Sunday as he cruised to his first win in three years at the Iowa Corn 300 and celebrated with his trademark Spider-Man climb up the track fence – giving the #IowaCorn300 hashtag lots of Twitter traction, since it was coincidentally the opening weekend for the new Spider-Man: Homecoming movie.

The race showcases Iowa’s corn farmers, who awarded Helio with the Iowa Corn 300 trophy in victory lane. Iowa Corn Promotion Board President Larry Klever kicked off the race by saying “Drivers, start your Iowa corn ethanol power engines” while Iowa Corn Growers Association President Kurt Hora waved the green flag.

“This event continues to be an excellent platform for promoting and showcasing the true power and performance of ethanol,” said Klever. “Over the past decade, INDYCAR drivers have logged millions of miles racing on E85.”

Hora says the race was a good time to celebrate the Iowa Corn Growers Association 50th anniversary this year. “We thank our Iowa Corn members and their families for helping us celebrate 50 years and another great Iowa Corn 300,” he said.

Iowa corn growers members heard from a number of fans and visitors who stopped by their hospitality tent, including IndyCar driver JR Hildebrand, who finished second in the race, as well Senator Joni Ernst, Reps. Rod Blum, and Dave Loebsack, and Iowa Governor Kim Reynolds.

AgWired Energy, corn, Ethanol, Events, Indy Racing

Siouxland Ethanol Improves Efficiency with Energy Recovery

Cindy Zimmerman

Siouxland Ethanol is only one month into a new MSW Energy Recovery (MER) project and already results have exceeded expectations.

The Nebraska-based ethanol plant reports that natural gas usage for the month of June was lowered by 17.8%, from 23,200 BTU’s per gallon to 19,058 BTU’s per gallon, which will result in nearly $1 million in savings on an annualized basis.

“Siouxland Ethanol plans to apply for a new carbon index score from the California Air Resources Board (CARB),” said president and CEO Nick Bowdish. “We anticipate our new CI score will be 4-5 points lower than our current score of 72.63. The new CI score, made possible by the MER project, will provide additional value for all of the ethanol that we currently sell in the California market.” Application to CARB for a new lower CI score will be submitted after three months of operational data is gathered.

MSW Consulting, Inc. is the design-build engineering firm that developed the MER project and Siouxland Ethanol is pleased to be the first ethanol plant in the country to install it.

Ethanol, Ethanol News, Low Carbon Fuel Standard

Biodiesel Industry Files New Claim Against Argentinian Imports

Cindy Zimmerman

Biodiesel tank at a port in Argentina

The National Biodiesel Board (NBB) Fair Trade Coalition has filed a new allegation with the U.S. Department of Commerce claiming that “critical circumstances” exist with respect to imports of biodiesel from Argentina. The “critical circumstances” provision in antidumping and countervailing duties laws allows for the imposition of duties on imports that enter the United States prior to preliminary determinations of subsidization and dumping.

The coalition found that imports of biodiesel from Argentina jumped 144.5 percent since the filing of the antidumping and countervailing duty petitions, as compared to the period prior to the filings.

“When we see biodiesel from Argentina selling at a discount to the market price of soyoil—the main input into biodiesel—we know we are facing dumped pricing,” said Paul Soanes, CEO and President of Renewable Biofuels (RBF) in Texas. “The United States is a key market for these exporters, and without a remedy, these unfairly traded imports are likely to continue unabated.”

To determine critical circumstances, the Commerce Department must find that there are “massive” imports over a relatively short period of time, and that other statutory criteria are met, including whether the imports benefit from illegal subsidies. The NBB Fair Trade Coalition’s petition alleges that each condition has been met.

Earlier this year, the NBB Fair Trade Coalition filed petitions with the Commerce Department and the U.S. International Trade Commission (ITC), which allege that significant increases in subsidized and dumped biodiesel imports from Argentina and Indonesia have injured U.S. producers, including by taking market share away from U.S. manufacturers and suffocating U.S. investment activity.

Biodiesel, International, NBB, Trade

High Octane 10% Ethanol at the Buffalo Chip

Cindy Zimmerman

Buffalo Chip Campground fueling station in Sturgis, SD

Motorcycle riders – and all motorists – traveling around Sturgis, S.D., can now fuel up 24 hours a day with 93 octane, 10% ethanol thanks to the Renewable Fuels Association (RFA), which has donated a permanent fueling station to the Buffalo Chip Campground.

RFA VP of Industry Relations Robert White says they have partnered with the Buffalo Chip since 2009 to help educate motorcyclists about ethanol during the annual Sturgis Motorcycle Rally, but this new fueling station will keep that going year round. “Motorcycle owners are typically looking for high octane, and ethanol helps provide that,” said White. “The Buffalo Chip is the only location in the area that offers 93 octane. The 93 is achieved by adding 10% ethanol to standard 91 octane premium, and thanks to the cost savings of ethanol, 93 octane is actually cheaper than 91 octane.”

RFA’s partnership with the Buffalo Chip has been fostered by the strong support of owner Rod Woodruff. “We are excited about this new addition and the ability to offer fuel to the public thanks to the Renewable Fuels Association,” said Woodruff. “It will be one more service we can provide while helping set the record straight on ethanol.”

RFA has been offering 10% ethanol for motorcyclists at the campground with Free Fuel Happy Hours during the Sturgis rally, so White says the new fueling station will make that effort a lot easier this year. “We’ll be doing it at an actual gas station, so it will be a unique experience, but we are very excited to see how many motorcycles we can get through in those three hours each day,” said White. The 77th Sturgis Motorcycle Rally will be held August 4-13. Watch the video below to see more.

White talks about about the partnership in this edition of The Ethanol Report podcast: Ethanol Report on E10 station at Sturgis

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Audio, Ethanol, Ethanol News, Ethanol Report, Motorcycle, RFA, Sturgis

Why Oil Companies Hate E15 and the RFS

Cindy Zimmerman

Commentary by Bob Dinneen, Renewable Fuels Association President and CEO

In a statement as predictable as the sunrise, the American Petroleum Institute (API) said yesterday that EPA’s proposal to slightly reduce 2018 RFS blending volumes “does not go far enough.” True to form, API instead called on Congress to “fix” the program, citing a litany of familiar myths and misinformation about ethanol and the RFS. But beyond the PR spin and political hoopla lies a much different reality.

Indeed, a recent quote in the Houston Chronicle from Tom Kloza, founder of the Oil Price Information Service, poignantly summed up the debate over ethanol, the RFS, and E15 (a higher-level ethanol blend that would enjoy greater market access with both a strong 2018 RFS requirement and passage of Senate Bill 517, the Consumer and Fuel Retailer Choice Act). “You have not had a major oil company or a refiner roll out E15 at their stations and the reason is they’re interested in selling hydrocarbons,” Kloza said.

Bingo. This debate isn’t about boats and lawnmowers and motorcycles. It isn’t about auto warranties and fictitious “engine damage.” It isn’t about the fabled “blend wall” or food prices or land use change. No, the debate over the RFS and E15 is all about oil companies, those folks extracting petroleum from Mother Earth, losing market share. Period. It’s really that simple.

Thanks in large part to the RFS, oil companies have already seen ethanol’s share of the gasoline pool rise from 1.3% in 2000 to just over 10% in 2016. They certainly don’t want to lose another 5% of the market, even though E15 provides American consumers with a cleaner, higher-octane, and lower-cost fuel option.

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Commentary, Ethanol, Ethanol News, RFA, RFS

Renewable Energy Group Announces Resignation of CEO

Cindy Zimmerman

Renewable Energy Group announced that Daniel J. Oh has resigned as President and Chief Executive Officer and as a member of the Company’s Board of Directors.

“The Board appreciates Dan’s work in guiding REG to its position as the industry leader with sales of over $2 billion in 2016, as well as his willingness to assist on transitional matters over the next several months. We wish him the best in his future endeavors,” said Jeff Stroburg, Chairman of the REG Board of Directors. Oh commented, “I am extremely proud of the REG team and the success we achieved over the past ten years.”

Interim REG CEO Randy Howard

The Board of Directors appointed long-time director Randolph (Randy) L. Howard as Interim President and Chief Executive Officer.

Howard has served as a member of REG’s Board of Directors since February 2007, serving on both the Company’s Audit Committee and Nominating and Governance Committee and as chair of the Board’s Risk Management Committee, and has extensive leadership experience in all aspects of a complex energy business, including international experience. s.

Biodiesel, REG