More Industry Reaction to RFS Proposal

Cindy Zimmerman

On track for the ethanol industry but a setback for biodiesel is how the majority of stakeholders are viewing the new proposed levels for biofuels under the Renewable Fuel Standard (RFS) that were released Wednesday by the Environmental Protection Agency. In addition to the Renewable Fuels Association and National Biodiesel Board, the following groups are a few that chimed in with their comments:

American Coalition for Ethanol (ACE) – “ACE is grateful EPA is proposing to maintain the 15-billion-gallon conventional biofuel blending requirement for 2018.”

National Corn Growers – “We are pleased to see EPA pick up where last year’s RFS rulemaking left off and propose a rule that keeps the RFS on track for conventional ethanol production.

Growth Energy – Proposed RVOs signal administration holding to promise of support for RFS but more certainty needed.

American Soybean Association – RFS Volumes a Missed Opportunity for Biodiesel

Iowa Renewable Fuels Association – Trump Administration proposal keeps campaign promise to uphold the Renewable Fuel Standard for ethanol

Iowa Biodiesel Board – Renewable Fuel Standard volumes issue setback to biodiesel

ACE, Biodiesel, corn, Ethanol, Ethanol News, Growth Energy

Industry Reacts to Proposed Biofuels Levels

The ethanol industry and corn farmers are pleased, but biodiesel producers and soybean growers are not so much with new proposed levels for biofuels under the Renewable Fuel Standard (RFS) released by the Environmental Protection Agency.

The 2018 RFS level for conventional biofuels, including corn ethanol, was maintained at 15 billion gallons, the maximum under current law, which Renewable Fuels Association president and CEO Bob Dinneen says will benefit both producers and consumers. “By maintaining the 15 billion gallon level for corn ethanol, the rule will also help to drive more investment in infrastructure to accommodate higher ethanol blends,” said Dinneen.

He is concerned, however, with the reduction in the cellulosic biofuel requirement to 238 million gallons but he understands that EPA has to base the numbers on actual production. “Unfortunately, last year and the year before cellulose did not meet their required volumes,” said Dinneen.

In this interview, Dinneen also gives update on Brazil’s attempt to impose tariffs on U.S. ethanol: Interview with Bob Dinneen, RFA

On the biodiesel side, the EPA proposal would maintain the minimum required biomass-based diesel volumes at 2.1 billion gallons for 2019, far below the industry request of 2.75 billion gallons. The EPA also proposed to set the 2018 RFS for advanced biofuels based on a minimum applicable volume of 4.24 billion gallons, a decrease from 4.28 billion gallons for 2017.

“This proposal continues to underestimate the ability of the biomass-based diesel industry to meet the volumes of the RFS program,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. “The EPA should be committed to diversifying the diesel fuel market and prioritizing advanced biofuels. Targets like this ignore reality and the law, inhibiting growth in the industry.”

Steckel says it is important that the administration keep the RFS separate from trade issues such as low cost imports of biodiesel from Argentina. “The way that can be handled is through our anti-dumping and countervailing duty cases that are pending,” she said.

Learn more in this interview: Interview with Anne Steckel, NBB

AgWired Energy, Audio, Biodiesel, biofuels, corn, EPA, Ethanol, RFA, RFS

NCGA Dedicated to Driving Ethanol Demand

State and National Corn Grower Association (NCGA) staff recently met to conduct an in-depth, state of the ethanol industry analysis in Bloomington, Illinois at the offices of Illinois Corn. The goal was to discuss and review the ethanol plan constructed by the group last November.

The corn team reviewed ethanol production, demand and volume obligation scenarios under the Renewable Fuels Standard and discussed demand strategy for the future such as growing ethanol consumption through higher ethanol blends, increasing exports, expanding relationships with automakers and assuring a united approach with consistent messaging from corn farmers and other ethanol supporters.

NCGA is also expanding its staff for ethanol creating the new position of manager of renewable fuels in the St. Louis office. Peter Magner brings a combination of experience in research, public policy and energy management to the job where he will provide key support to ethanol programs within the organization.

Magner most recently worked as a forest technician for the Duke University Forest. Previously, he also held other positions with the North Carolina League of Conservation Votes and the South Carolina Department of Health and Human Services. He earned a master’s degree in environmental management from Duke University and a bachelor’s degree in psychology from the University of Wisconsin at River Falls.

AgWired Energy, corn, Ethanol, NCGA

Biodiesel Industry Considering Options Against Argentina

The U.S. biodiesel industry is considering legal options as imports of subsidized biodiesel have continued to increase since the National Biodiesel Board (NBB) Fair Trade Coalition filed an antidumping petition in March alleging that dumped biodiesel imports from Argentina and Indonesia have injured U.S. producers.

“What we’re seeing is a vast amount of imports continue to flood into our ports,” said NBB vice president of federal affairs Anne Steckel on behalf of the coalition. “We’ve received information of potentially 75 million gallons of biodiesel flooding our ports soon, a significant increase from the import levels we saw in January, February and March.”

Steckel says they are considering their legal options, which includes filing a “critical circumstances” request that allows the government to impose duties retroactively on imports reaching U.S. shores up to 90 days prior to the Department of Commerce’s preliminary determinations, which will not be until later this year. “We’re taking the appropriate legal steps to ensure that we have accurate duties put on those imports.”

Learn more about the situation and last week’s biodiesel industry congressional visits to discuss issues such as moving to a producer’s tax credit in this interview: Interview with Anne Steckel, NBB

AgWired Energy, Audio, Biodiesel, International, Soybean

Blue Flint Ethanol Celebrates a Decade

Cindy Zimmerman

Blue Flint Ethanol near Underwood, ND is the latest plant to celebrate ten years of operations.

The 70 million gallon facility has produced over 650 million gallons of ethanol in its 10 years of operations. Located adjacent to Coal Creek Station, it is the first co-located, directly integrated ethanol plant in the world. As a by-product of generating electricity, Coal Creek Station produces process steam which Blue Flint Ethanol uses as the thermal energy in its ethanol production process. Since Blue Flint began producing ethanol and dried distillers grains in February 2007, the plant has evolved into a biorefinery, integrating corn oil production and an E85 blending station.

Blue Flint is owned by Midwest AgEnergy Group and was named after the blue flint corn grown by Indian tribes that once lived in the Missouri River Valley near the plant.

Ethanol, Ethanol News

The Growing Enogen Footprint

Enogen hosted about 1,200 farmer-customers at the American Ethanol E15 250 Presented by Enogen. As Enogen continues to grow, the NASCAR race held at Iowa Speedway was the perfect place to spotlight the farmers who supply the Enogen which will produce about 2 billion gallons of ethanol this year.

“We see this race as a great opportunity to support the efforts of E15. E10 is already blended in 89% of the fuel consumers purchase. The E15 market is just developing and can really help corn farmers. As Enogen, I can’t think of a better place for us to step up and demonstrate how we can help famrers,” said Ron Wulfkuhle, head of Enogen at Syngenta.

Ron said the Enogen footprint is growing in local communities providing new income and incentives. Other examples of those helping to expand that footprint include partnerships with Growth Energy and Kum & Go to contine sharing the message of the clean-buring, high-octane fuel E15 gives customers.

Listen to my complete interview with Ron here: Interview with Ron Wulfkuhle, Enogen at Syngenta

View and download photos from the race here: American Ethanol E15 250 Presented by Enogen Syngenta Photo Album

Agribusiness, AgWired Energy, Audio, biofuels, corn, Ethanol, NASCAR, Syngenta

U.S. Ethanol Production Growing

Cindy Zimmerman

Fuel ethanol production capacity in the United States is 15.5 billion gallons this year or 1.01 million barrels per day (b/d), according to the latest EIA U.S. Fuel Ethanol Plant Production Capacity report.

Total capacity of ethanol plants in operation increased by more than 600 million gallons per year or about four percent from 2016, with most of the increased capacity coming from the Midwestern states, which produce 14 billion gallons per year. The top three states—Iowa, Nebraska, and Illinois—account for more than half of the nation’s total ethanol production capacity.

Actual production is running pretty close to nameplate capacity so far this year. According to the EIA data through June 23, ethanol production is still running just a little more than the million barrel per day mark, with an annualized rate of 15.36 billion gallons.

Energy, Ethanol, Ethanol News

ASTM Awards Ethanol Industry Leaders

Cindy Zimmerman

Two ethanol industry technical experts were honored this week by members of ASTM International gathered for their D02 2017 meeting in Boston, Massachusetts.

The ASTM Committee D02 on Petroleum Products, Liquid Fuels, and Lubricants presented Renewable Fuels Association (RFA) Director of Regulatory Affairs Kelly Davis with the “Award of Excellence” for her service to the committee and work to enhance fuel quality standards.

Catherine Woodliff with The Anderson’s, Chair of RFA’s Technical Committee, received the D02 “Appreciation Award” for her guidance and leadership during discussions on U. S. Tier 3 gasoline regulations resulted in a timely update to Specification D4806 for denatured fuel ethanol.

The ASTM Committee D02 on Petroleum Products, Liquid Fuels, and Lubricants promotes knowledge and the promulgation of standard specifications, classifications, test methods, practices, guides, and terminology in the technical fields of petroleum products, liquid fuels and lubricants.

Ethanol, Ethanol News, RFA

Fox River Valley Ethanol to Install Whitefox ICE™

Cindy Zimmerman

whitefox_logoFox River Valley Ethanol has agreed to become the third U.S. ethanol plant to install a Whitefox ICE™ modular bolt-on system at its plant in Wisconsin following installations at Pacific Ethanol in California and Pine Lake Corn Processors in Iowa.

Fox River Fox River Valley President Neal Kemmet says they are installing the Whitefox ICE™ solution to remove process bottlenecks and reduce energy consumption. The objective is to free up capacity in the distillation-dehydration section to enable an increase in production of up to 15% and reduce steam consumption.

Ethanol, Ethanol News