Should EPA Increase Biofuels Use? Yes, It’s the Law

Jamie Johansen

zp-nh1Our latest ZimmPoll asked the question, “Should EPA increase biofuels use?”

Energy diversity takes the win this week. EPA set final levels for biofuels use in 2017 under the Renewable Fuel Standard (RFS) that are in line with the 2007 Energy Independence and Security Act, calling for the maximum 15 million gallons of conventional ethanol for the first time and increasing volumes for biomass-based biodiesel.

Here are the poll results:

  • Yes – it’s the law – 60%
  • No – repeal RFS – 23%
  • Don’t know – 11%
  • Other – 6%

Our new ZimmPoll is live and asks the question, What’s on your Christmas list?

I find it hard to believe it is already time for Christmas. I guess times flies when you’re having fun! Have you made your list for Santa? My nearly three-year-old has and it’s a doozy. I fit into the category of #AgNerd and check daily to see if Apple’s Airpods have been released yet. Sadly, the day hasn’t come. Are you looking for some new warm gear to do chores in, some ag tech to help make life on the farm easier or are you one of those who just asks for cash or gifts cards? Let us know!

ZimmPoll

#Biofuels Could Benefit Under Trump

Joanna Schroeder

At the American Seed Trade Association (ASTA) CSS & Seed Expo this week, noted agricultural economist Dan Basse with Ag Resource Company once again provided his global outlook for agriculture, which includes the outlook for biofuels.

Basse noted that he doesn’t believe the Biodiesel Tax Credit, which expires on December 31, 2016, will be extended before the end of the year. However, he said the incoming Trump Administration has suggested this legislation will be wrapped up with other tax legislation and we could possibly see something passed towards the end of the first quarter next year.

Basse believes that President Trump will be very good for biofuels. “He is promising biofuel policies that will be more open,” said Basse. “I think ethanol has a secure place in the gas tank at a ten percent blend rate.” He adds, “It is surely a mature market unless the government wants to legislate higher blend rates in the future.”

By 2022-2023 Basse believes anywhere between 20-25 percent of the U.S. auto fleet will be electric. “Everyone is coming out with an electric car. We believe the efficiency, the ability to maybe have some driverless opportunities will lead us in that direction. So renewables, having solar panels on your house, plugging your car in at night or running your heater, will lead to decarbonization in the world sometime in the vicinity of 2027 to 2032.”

Basse talks more about renewables in this interview covering the ag outlook for 2017: Interview with Dan Basse, Ag Resource Company

ASTA CSS 2016 Photo Album

Coverage of ASTA CSS 2016 and Seed Expo brought to you by
Coverage of ASTA CSS 2016 and Seed Expo brought to you by the American Seed Trade Association and Coverage of ASTA CSS 2016 and Seed Expo brought to you by BASF Ag Products
Audio, Biodiesel, biofuels, Electric Vehicles, Ethanol, Solar

#Ethanol Exports Rise, Imports Fizzle

Joanna Schroeder

Ethanol exports continue to rise with another record breaking October with a total of 131.6 million gallons (mg), the highest monthly volume since December 2011. The U.S. government data was analyzed by the Renewable Fuels Association (RFA) and found that October exports were 32 percent higher than September of this year and 69 percent higher than in August of this year. The top country was Brazil with 42.7 mg, up from last month, equaling nearly a third of total exports for the month. Canada also increased its exports by 25 percent to 35.0 mg. Other exporters of note were India with 16.5 mg, China with 10.6 mg, the Philippines with 6.3 mg, Peru with 4.8 mg and Mexico with 3.87 mg. This year two-thirds of total exports gone to China, Brazil and Canada, and year-to-date- exports are at 825.5 mg, on track for an estimated total of 990.6 mg for 2016.

Sales of undenatured fuel ethanol in October expanded by 36% to a record-breaking 70.0 mg. Brazil’s purchase of 40.0 mg (57% of the U.S. export market) plus sales of 16.5 mg to India (24%) were significantly responsible for moving the needle. Larger volumes also headed to the Philippines (6.3 mg), Mexico (3.7 mg) and Saudi Arabia (2.5 mg). October exports of U.S. denatured fuel ethanol increased by 23% over the prior month to 54.2 mg. Canada (33.2 mg, or 61%), China (10.6 mg, or 19%) and Peru (4.8 mg, or 9%) were again the primary markets.Read More

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Sweden Releases Climate Roadmap 2050

Joanna Schroeder

Sweden has unveiled its Climate Roadmap – the country’s plan to help meet the EU initiative Roadmap 2050 for climate, transportation and energy. One key area to meet these goals, finds the plan, is the bio-based economy. For Sweden, its forest and forestry sector will play a major role in this emerging bio-based economy through more sustainable forest management, its ability to absorb carbon emissions, and it’s ability to be a feedstock for the creation of new biomaterials.

Linnaeus University will be launching a new initiative in January 2017, “Total carbon balance of Swedish forestry sector: Evaluate guidelines for climate roadmap 2050”. The goal of this project is to evaluate the actions and policies described in the climate roadmap and the effect on the total carbon balance of the Swedish forestry sector. Led by experts, the study will include assessments and evaluations of forest ecosystems, forest products’ carbon stock, material and energy use of forest based raw materials, waste and recycling of used forest products.

“To understand and describe the role of forests in climate benefits, it is important that the analysis includes the forestry sector as a whole. Then we can clarify not only how forestry affects the amount of carbon sequestered and stored in forests, but also how biofuels and other forest products can replace fossil fuels and energy-intensive products such as concrete and aluminum,” said Bishnu Chandra Poudel, researcher at the Department of Forestry and Wood Technology at Linnaeus University and project leader.

Chandra said the scientific challenge is to understand how different management systems and uses of biomass offer the greatest benefits to the climate. The study will also identify how the forestry industry is using its feedstocks – for example whether in use in buildings or to produce biofuels – and then assess the amount of forest products that will be required to meet all sector needs while contributing to Sweden’s climate roadmap.

The three-year project has received SEK 2,997,000 in a grant from Formas’ fund for research and development projects to research leaders of the future in 2016.

biomass, biomaterials, Climate Change, International

Study Shows People Will May More for #Biofuels

Joanna Schroeder

A new study has found that consumers are willing to pay more for second generation biofuels, in fact up to an 11 percent premium over conventional fuel. The research, “Consumer Preferences for Second-Generation Bioethanol,” was conducted by Washington State University (WSU) and published in the November issue of the journal of Energy Economics.

“We were surprised the premium was that significant,” said Jill McCluskey, WSU professor in the School of Economic Sciences. “We wanted to study people in different regions of the country, to make sure we weren’t just getting a local result, and people in all three cities we studied said they would pay more for these fuels.”

The study was in part funded from a grant from the National Science Foundation overseen by WSU professor Shulin Chen, who is housed in the Department of Biological Systems Engineering. Chen researches biofuels and reached out to McCluskey to learn whether people would buy next generation biofuels. Sustainable biofuels have been in the news in the region of late with several airlines, such as Alaska Airlines, flying with aviation biofuels.

“This new biofuel doesn’t exist commercially yet, so we have to do these studies to make sure there’s a potential market for it,” McCluskey said. “And this shows there clearly is a market.”

The team conducted surveys in three markets with Portland, Oregon drivers saying they would pay up to 17 percent more for second gen biofuels, consumers in Minneapolis, Minnesota said they would pay a 9 percent premium and participants in Boston said they would pay up to an 8 percent premium.

“People in the survey were concerned that the new fuel may put their car at risk, by not running the same as conventional fuel,” McCluskey added. “But they also saw the added benefit to the environment.”

The researchers asked participants if they would be willing to pay a certain amount for the product. If they said no, researchers offered a discount and asked if participants would pay that amount. However, if respondents said yes, researchers asked if they would be willing to pay a little more for the product. Before they were surveyed, half of the participants were given information about second generation biofuels. Those participants were more willing to pay a greater premium, which suggests that marketing the benefits of the new biofuels would improve consumers’ perceptions, McCluskey said.

advanced biofuels, Biodiesel, Cellulosic, Ethanol, Research

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The U.S. Energy Information Administration has released its December 2016 Short-Term Energy Outlook. The forecast for renewables: “U.S. wind power capacity is expected to increase by 11% next year, while utility-scale solar power capacity is set to grow by 27%.”
  • Reuters is reporting that China is aiming to produce 4 million tonnes of ethanol by 2020, doubling output from the current level, even as it keeps tight control over the use of food grains to make the biofuel, a government plan showed on Monday. The world’s largest energy consumer plans to raise the non-fossil fuel portion of primary energy consumption to 15 percent from 12 percent by the end of its current five-year plan in 2020.
  • “The in 2015 established cap limit for biofuels from cultivated biomass in the amount of 7% must be maintained over the year 2020”. With this position, the Union for the Promotion of Oil and Protein Plants (UFOP) rejects the current European Commission proposal on the reform of biofuels policy for the period from 2020 to 2030. At the same time, the association is calling for this cut-off limit to be limited to biofuels, which also make a significant contribution to the reduction of imports of genetically modified protein feeds.
  • Clean Energy Fuels Corp has announced that it has been awarded two new fueling station construction projects, and that its Facility Modification Services (FMS) division continues to grow with multiple projects underway, including three for Cummins Inc.’s Sales and Service business.
Bioenergy Bytes

EPA Holds RFS Rule Hearing in Chicago

Cindy Zimmerman

The Environmental Protection Agency held a public hearing in Chicago yesterday to hear testimony the agency’s proposed Renewables Enhancement and Growth Support (REGS) rule. The rule includes several actions that would help allow the market to introduce greater volumes of renewable fuels under the Renewable Fuel Standard (RFS).

Among those who testified was Renewable Fuels Association senior vice president Geoff Cooper, who focused primarily on strengthening ethanol flex-fuel (EFF) provisions, telling EPA officials that the recommendations are intended to boost flexibility and allow “EFF producers, distributors, and consumers to capitalize on economic efficiencies in the marketplace.” Cooper also stressed the RFA’s opposition to EPA’s plan to establish a quality survey program (stemming from the industry’s negative experience with the E15 fuel survey) that would collect and analyze EFF samples as the costs for implementing such a program would outbalance the benefits.Geoff Cooper, RFA, EPA hearing testimony

Chris Bliley, Director of Regulatory Affairs for Growth Energy, commented on concerns regarding the impact of the REGs rule on the developing market for E15. “While the proposal doesn’t directly address E15, it would isolate E15 as the only ethanol-blended fuel that does not receive Reid Vapor Pressure (RVP) relief in conventional areas. This would deny retailers and consumers the choice of cleaner, less-expensive E15 in a large portion of the country during the height of the summer driving season.” Chris Bliley, Growth Energy, EPA hearing testimony

Listen to the full hearing here: EPA REGS Rule Hearing

Audio, EPA, Ethanol, Ethanol News, Growth Energy, RFA

Nebraska Drivers Save $17M With #Ethanol

Joanna Schroeder

Ethanol-blended fuels are saving Nebraska consumers money at the pump this year – nearly $17 million. According to data analyzed by the Nebraska Ethanol Board (NEB), these savings are due to lower-prices for ethanol as compared to wholesale gasoline along with the state’s projected yearly fuel consumption of 900 million gallons. Today the most common ethanol blend sold across the country is E10, or a blend of 10 percent ethanol and 90 percent gasoline. NEB reports that between August 2015 and August 2016 the wholesale cost of ethanol averaged 18 cents per gallon less than the minimum octane fuel legally allowed to be sold in the majority of the country.

Photo credit: Nebraska Ethanol Board

Photo credit: Nebraska Ethanol Board

In terms of national gas consumption, the Department of Energy (DOE) is projecting that national yearly fuel consumption will exceed 140 billion gallons in 2016. Thanks in part to state and federal biofuel programs, 97 percent of this fuel will be blended with ethanol, and NEB notes the cleaner-burning, octane boosting biofuel make it an indispensable component of the country’s motor fuel supply.

NEB Board Administrator Todd Sneller is anticipating that ethanol’s role in 2017 will grow due to increased biofuel volumes as required by the federal Renewable Fuel Standard (RFS). “Higher octane fuel reduces ‘engine knocking’ and provides better vehicle performance,” he said. “Adding ethanol to boost octane reduces the toxicity of gasoline. It’s a win-win for consumers and the environment.”

Adding ethanol to fuel blends increases octane so adding 10 percent ethanol to regular gasoline is sold as 87 octane, the minimum octane recommended by most automakers. Adding ethanol also reduces tailpipe emissions and thus helps to improve air quality. For example, EPA’s Urban Air Toxics report states that U.S. refiners often boost octane by adding refining by-products such as benzene, toluene, ethyl benzene and xylene. The majority of these chemicals are either known to be or suspected of being carcinogens. Plus they are more expensive than ethanol – on average petroleum-based additives range from 35 cents to a dollar more per gallon than ethanol according to a February 2016 study conducted by the University of Illinois at Urbana-Champaign.

“These products of oil refining, known as aromatics, can produce cancer-causing emissions which damage the human immune, respiratory, neurological, reproductive and developmental systems,” Sneller said. “Ethanol is much less expensive and cleaner-burning than these toxic petroleum-based chemicals.” He added, “Future growth in the ethanol industry is likely tied directly to automaker efforts to meet increasingly stringent U.S. fuel economy standards. New vehicles will have more efficient, higher compression engines that require even higher octane fuels. Ethanol will continue to play a role as a high-octane, low-carbon renewable choice in the U.S. and abroad.”

biofuels, Environment, Ethanol, Octane

BETO to Issue Integrated Biorefinery Optimization Funding

Joanna Schroeder

DOE logoThe Bioenergy Technologies Office (BETO), a part of the U.S. Department of Energy (DOE) has announced the intent to issue a funding opportunity announcement called, “Integrated Biorefinery Optimization.”

The funding will support R&D to increase biorefinery efficiencies that result in a continuous operation and production of biofuels, bioproducts, and biopower at competitive prices to fossil-based products. Suggested methods for accomplishing these performance efficiencies include: improvements in ensuring reliable, continuous, robust handling and feeding of solid materials into reactors under various operating conditions; decreased capital and operating expenses by improved separation processes; production of higher-value products from waste or other undervalued streams; and analytical modeling of handling and feeding of solid materials into reactors.

Applications that address these challenging operations and convert woody biomass, agricultural residues, dedicated energy crops, algae, municipal solid waste, sludge from wastewater treatment plants, and wet wastes into biofuels, biochemicals, and bioproducts will be considered under this funding opportunity.

Application deadline is yet to be determined.

advanced biofuels, biochemicals, Biodiesel, bioproducts, Ethanol

Queensland RFA: Gas Prices Intact With #Ethanol

Joanna Schroeder

The Queensland Renewable Fuels Association (Queensland RFA) has come out in support of ethanol after various statements from organizations claim that blending ethanol in the fuel supply will increase the price of gas. This, says Queensland RFA, is not true. The debate was heightened recently when the State of Government’s ethanol mandate passed along with a report from the Australian Competition and Consumer Commission report that was published that found that a similar mandate in force since 2007 in NSW has reduced consumer choice at the pump and thus forced drivers to buy more expensive octane blends.

queensland-rfa-logoBeginning January 1, 2017, large retail stations will be required to offer at minimum 3 percent of their total regular and ethanol-blended gas sales each quarter be biobased. This can include blends such as E10. The mandate will increase to 4 percent in 2018. In addition, the mandate requires 0.5 percent of all diesel fuel be sold contain a biobased fuel such as biodiesel.

Larissa Rose, Managing Director for Queensland RFA, said the comparison of the Queensland and NSW mandates were misleading. “When NSW introduced its mandate in 2007, consumers were unsure about filling up with E10, which caused them to purchase premium grade fuels, therefore raising fuel sales in those categories,” said Rose. “Because there was minimal consumer education about the environmental benefits of E10 and its capacity to give consumers a safe higher-octane fuel at a lower price for their vehicles, misperceptions in the marketplace occurred, leading to a significant increase in consumers choosing the premium fuels, and therefore paying more.”

When the mandate goes into affect, 91 unleaded gas will still be available, said Rose, for drivers who don’t want to change their fuel consumption habits or expenditures.

“What we need to do is ensure there is consumer education to remove the stigmas about biofuels and help consumers make an informed and aware choice at the purchase point. But for consumers who choose to continue using the same fuel they have always used, there will be no significant price impact as a result of this mandate,” said Rose. She added, “Biofuels reduce carcinogenic tailpipe emissions as concluded by the CSIRO/Orbital Research Report (2008), that using E10 decreases the lung embedding particle PM2.5 by 33%. Further focus is supporting Queensland agriculture by investing in our grain and sugar producing regions to produce ethanol domestically. That can only be a significant benefit to this State.”

Biodiesel, Ethanol, International