Ethanol Industry Discounts API Poll

Cindy Zimmerman

The Renewable Fuels Association (RFA) is calling results of yet another American Petroleum Institute (API) push poll released today “skewed” and based on misleading questions. API claims its poll results show a majority of Americans are “concerned about the government requiring increased amounts of ethanol in gasoline” under the Renewable Fuel Standard (RFS).

RFA notes that API historically frames its polling questions to be biased against the RFS, providing a question from API’s April 2016 poll as an an example:

“As you may know, much of the gasoline in the U.S. market currently contains up to a 10% ethanol blend. Most auto manufacturers have said they will not cover vehicle damage caused by higher ethanol fuel blends over 10% if the vehicle is not specifically designed for it. Given that situation, how concerned are you about government requirements that would increase the amount of ethanol in gasoline?”

RFA also notes that a recent survey conducted on their behalf by Morning Consult found a more than 3:1 margin of support for the RFS.

“The RFS has been an unmitigated success, stimulating growth in domestic renewable fuels, creating a value-added market for farmers and providing choice at the pump for consumers,” said RFA President and CEO Bob Dinneen. “It’s no wonder that API, which represents petroleum producers, wants to obfuscate the success of a program that boosts the production and use of renewable fuel. Consumers want a choice at the pump and the RFS helps ensure that choice exists. API can release all the push polls it wants, but the truth speaks for itself.”

Ethanol, Ethanol News, RFA, RFS

Syngenta Touts Potential for Cellulosic Ethanol

Cindy Zimmerman

Developments in cellulosic ethanol technology are creating opportunities for American ethanol producers.

Miloud Araba, head of Enogen® technical services at Syngenta, says cellulosic innovation could enable dry grind ethanol producers to meet the increasing Renewable Fuel Standard (RFS) volume requirements for cellulosic biofuels, which are up 35 percent for 2017.

“Approximately 10 percent of the corn kernel dry weight is fiber, and converting corn kernel fiber feedstock to cellulosic ethanol has been possible for some time,” Araba said. “However, recent advances in technologies can enable commercial deployment today. In fact, the approximately 12 million tons of corn kernel fiber feedstock already available at U.S. dry grind ethanol plants each year could produce a potential 1.5 billion gallons of additional, cellulosic ethanol.”

Araba added that the California Low Carbon Fuel Standard (LCFS) offers further opportunities for corn kernel fiber. “Low carbon intensity fuel that puts out fewer emissions will be increasingly needed in California to meet the goals of the LCFS program and the demand for LCFS credits,” he said. “Looking ahead, cellulosic ethanol from corn kernel fiber will be in demand because long-term objectives of the LCFS cannot be met with D6 ethanol at 10 percent.”

Araba discussed the potential during the recent National Ethanol Conference.

Cellulosic, Enogen, Ethanol, Ethanol News

Coalition Formed to Protect Point of Obligation

Cindy Zimmerman

A coalition made up largely of fuel retailers has been formed to oppose efforts to change the point of obligation requirement under the Renewable Fuel Standard (RFS).

The Main Street Energy Alliance (MSEA) includes the National Association of Convenience Stores, NATSO (representing truck stops and travel plazas), the Society of Independent Gasoline Marketers of America, as well as Shell and BP. MSEA spokesman Michael Steel says refiners would benefit from the point of obligation change at the expense of consumers and small businesses. “Shifting the point of obligation would add complexity for businesses, decrease the use of biofuels, and potentially increase costs for consumers. Many energy businesses and consumers on Main Streets across this country could be negatively impacted by this effort to reward just a small few,” said Steel.

The RFS system currently places compliance requirements on the parties that control the composition of fuels – refiners and their investors – which creates a strong incentive for downstream fuel blenders, retailers, and marketers to blend renewable fuels into the supply chain while lowering prices at the pump.

biofuels, Ethanol, Ethanol News, Retailers, RFS

RFA Disputes NWF Study with USDA County Data

Cindy Zimmerman

It is undisputed that the amount of land dedicated to crop production overall in the United States has been on the decline for decades, dropping 12 percent just between 1997 and 2012, according to USDA census data. At the same time, corn acreage and ethanol production have increased significantly, which is also undisputed.

What is disputed is whether increased ethanol production has come at the expense of “grasslands at the fringe of the Corn Belt within close proximity of refineries” as alleged in a recent study funded in part by the National Wildlife Federation (NWF).

The NWF study claims satellite data shows “pockets of conversion” around ethanol plants bringing new croplands into production. Renewable Fuels Association (RFA) senior vice president Geoff Cooper says actual USDA census data at the county level disproves that theory. “The USDA data reveal that consistent with the national trend, the overwhelming majority of counties with ethanol plants witnessed reductions—not expansions—in cropland between 1997 and 2012,” Cooper says of the analysis that examined cropland data for the 180 counties where 199 grain ethanol plants were located in 2016.

According to RFA’s analysis, in the 2007 to 2012 time period examined by the NWF study, total cropland in counties with ethanol plants fell by 454,000 acres, or 0.8 percent overall. Of the 180 counties, there were 16 percent where 2012 cropland was higher than in 1997, 2002, or 2007. The increase averaged about three percent and “coincided with reductions in Conservation Reserve Program (CRP) land and pastureland.”

Read the analysis here.

corn, Ethanol, Ethanol News, Indirect Land Use, RFA

More Iowa Retailers Carrying Biodiesel Blends

Cindy Zimmerman

BiodieselpumpKumGo1_0EFFDCA366A05Over half of Iowa’s fuel retailers carried biodiesel last year, up six percent from 2015 according to the Iowa Biodiesel Board (IBB).

The Iowa Department of Revenue released the 2016 Retailers Fuel Gallons Annual Report this month. The report shows during 2016, the amount of on-road biodiesel sold equaled 344.8 million gallons, or 54.7 percent of total on-road diesel fuel sales reported. This is up from 308 million gallons, or 48.7 percent of total on-road (clear) diesel fuel sales the previous year.

Also of significance, the report showed twice as many gallons of 11 – 20 percent biodiesel (B11-B20) were sold than of lower blends. In addition, 471 on-road retailers now carry biodiesel in Iowa, up from 405 in 2015.

“These milestones at the retail level show that Iowa’s progressive biofuels policies are working as intended to increase production and consumption,” said Grant Kimberley, Iowa Biodiesel Board executive director. “This industry is a powerful economic driver, benefiting the rural economy and consumers alike.”

Iowa is the number one biodiesel producer in the country, with a record 305 million gallons produced by plants in the state last year.

Biodiesel

USDA Predicts Record Soybean Acres, Less Corn

Cindy Zimmerman

The first estimate for crop plantings this year by USDA is calling for less corn but more soybeans.

According to the 2017 Prospective Plantings report, producers surveyed across the United States intend to plant an estimated 89.5 million acres of soybeans in 2017, up 7 percent from last year and a new record.
Planted acreage intentions for soybeans are up or unchanged in 27 of the 31 estimating states with the largest increase expected in Kansas with 5 million acres, an increase of 950,000 acres from 2016. Soybeans stored totaled 1.73 billion bushels, up 13 percent from March 1, 2016. On-farm soybean stocks were down 8 percent from a year ago, while off-farm stocks were up 33 percent.

Meanwhile, diminished returns for corn have growers intending to plant 90 million acres in 2017, four percent less than last year. Corn stocks totaled 8.62 billion bushels, up 10 percent from the same time last year. On-farm corn stocks were up 13 percent from a year ago, and off-farm stocks were up 6 percent.

The Prospective Plantings report provides the first official, survey based estimates of U.S. farmers’ 2017 planting intentions. NASS’s acreage estimates are based on surveys conducted during the first two weeks of March from a sample of approximately 83,300 farm operators across the United States.

corn, Soybeans, USDA

Crappie Masters is Big Target for Ethanol Message

Cindy Zimmerman

The ethanol industry is casting a wide net to hook anglers with the facts about using ten percent ethanol (E10) in boat engines by sponsoring the Crappie Masters All American Tournament Trail.

“There are over 18 million panfishing anglers in the United States and that’s just a base of what we touch,” says Crappie Masters owner Mike Vallentine, who bought the tournament in 2013 from previous owners who started it over a decade ago.

One of Vallentine’s first sponsors was the Missouri Corn Growers, which has now led to the Renewable Fuels Association (RFA) becoming a title sponsor of the tournament this year to expand the good news about ethanol even further. “With the power of the Renewable Fuels Association we continue to make that push and educate people,” said Vallentine. “We’ve taken this opportunity to bring the sport to a higher level.”

The next stop on the tournament trail is this Saturday, April 8, at Lake Fork in Emory, Texas. Learn more about Crappie Masters in this interview: Interview with Mike Vallentine, Crappie Masters

More interviews and photos from the Crappie Masters tournament

Audio, Boats, Ethanol, Ethanol News, RFA

Ethanol Workforce Big on Military Vets

Cindy Zimmerman

A new Department of Energy (DOE) study shows that military veterans make up a significant share of America’s ethanol industry workforce which is not only larger than any other energy sector but more than twice the national average.

Nearly one in five ethanol industry employees is a veteran (18.9%), compared to a national average of 7% across all sectors of the workforce, according to the DOE study. The study also finds that the ethanol industry employs twice as many veterans as the oil and gas sector and nearly four times as many veterans as the coal and nuclear power generation sectors. Other renewable energy sectors, including advanced biofuels, wind and solar, also employ a relatively large share of military veterans.

These statistics confirm what veterans working in the ethanol industry have been saying recently, like East Kansas Agri-Energy (EKAE) CEO Jeff Oestmann, a former U.S. Marine who recently organized a letter from industry vets urging President Trump to include renewable fuels in his energy plan.

Nine of the 52 employees at EKAE are veterans, which is very close to the national average. “Working and investing in the ethanol industry allows us to continue honoring our commitment to making America stronger and more independent,” said Oestmann during the recent National Ethanol Conference.

Listen to Oestmann’s comments here: EKAE CEO Jeff Oestmann at #RFANEC

Audio, Ethanol, Ethanol News, RFA

Butamax Acquires Kansas Ethanol Facility

Cindy Zimmerman

butamaxButamax Advanced Biofuels, a 50/50 joint venture between BP and DuPont, today announced the acquisition of Nesika Energy in Scandia, Kansas as the next step in the commercialization of bio-isobutanol.

“The Nesika facility will serve to demonstrate our technology at scale as well as validate process and biocatalyst improvements,” said Stuart Thomas, Butamax CEO. “Our plan is to broadly license our technology, and Nesika and the technology deployed at the site will play a key role in that activity.”

Bio-isobutanol is produced from renewable feedstocks and offers an option for growing the renewable content of gasoline and a lower carbon alternative to fossil-derived isobutanol in existing chemical applications. DuPont, BP and Butamax have partnered with the state of Kansas on economic incentives and job creation for this joint venture.

biobutanol, Ethanol, Ethanol News

US Coachways Donates $15K to Biodiesel Foundation

Cindy Zimmerman

US Coachways has been supporting sustainability and cleaner air by monthly contributions to biodiesel research and education which as of this month have totaled $15,000 provided to the National Biodiesel Foundation.

“Thanks to donations from companies such as US Coachways, the Foundation has been able to administer and support valuable education and research projects,” said Foundation president Jeff Lynn. “Over the past year we have trained hundreds of mechanics, improved the greenhouse gas emission profile of biodiesel, provided scholarships to next generation scientists, and educated key stakeholders and Congressional staff about the merits of biodiesel.”

“We contribute because we want to see the motorcoach industry become cleaner and more sustainable, and we’d also like to encourage other companies to put their commitment to sustainability into action by making donations to this foundation,” said Joseph Lucci, President of National Sales for US Coachways and its affiliates.

Headquartered in Staten Island, New York, US Coachways is a family owned and operated charter bus company that specializes in ground transportation for events such as school outings, religious retreats, camp transportation, team travel, weddings & other private events, and corporate client needs. With access to over 150 bus depots nationwide, US Coachways can help you move groups of people safely, efficiently and affordably anywhere in the United States. The nationwide company has made regular monthly contributions to the foundation since 2012.

The NBF is an inclusive, non-discriminatory 501(c) 3 organization working across the United States to create markets and expand support for biodiesel as an alternative, renewable fuel source.

Biodiesel, Education