European Ethanol Industry Calls for Ethanol Support

Joanna Schroeder November 29, 2016

The European ethanol industry is coming together in defense of ethanol as the European Commission has publicly announced that it is considering a gradual phase out of first generation biofuels produced from multiple crops including sugar beet, oilseed rape, wheat and corn. In a letter, the organizations are calling on the Commission to re-evaluate its position. All forms of ethanol, the letter states, is shown to be available and sustainable as well as saves Europeans money at the pump all while reducing emissions from the transport sector. The letter was jointly submitted by the European Association of Sugar Manufacturers (CEFS), the European Confederation of Maize Production (CEPM), the International Confederation of European Beet Growers (CIBE) and the European renewable ethanol producers association (ePURE).

The organizations states that a phase out of conventional biofuels will cost European farmers billions of Euro in revenue per year – a phase out of conventional ethanol alone, which represents only 20 percent of the EU biofuel market, will cost European farmers at least €2.1 billion revenue per year.

The letter goes on by explaining to the Commission that ethanol will continue to be vital to meeting Europe’s greenhouse gas reduction goals – 18 to 19 percent in the road transport sector. This is the case, the organizations write, because other forms of transportation such as electric vehicles will not ramp up quickly enough to have any significant impact on reducing the sector’s GHG emissions by 2030. In addition, the letter continues, electricity remains heavily dependent on fossil fuels.

The organizations highlighted several climate and energy benefits of ethanol:

European ethanol has certified and audited average high GHG emissions savings of 64%
compared to petrol. European ethanol’s strong GHG emission savings performance has been
constantly improving and is supported by the Commission’s own scientific studies. In 2015,
European ethanol companies produced 4.5 billion litres of renewable ethanol fuel, reducing
GHG emissions by 6 million tonnes – equivalent to the annual emissions produced by 4
million new cars.
In 2015 the use of European produced ethanol displaced the need for 19 billion barrels of
petrol in European transport – equivalent to nearly 4% of Europe’s petrol volumes.

The letter outlines why the Commissions strategy is wrong and states that the sustainability industry can and should be strengthened. The letter continues, “An unjustified phase out of conventional ethanol will hurt Europe’s farmers and would be an unacceptable abdication of the Commission’s responsibility to protect the existing €16 billion biofuel investments that have been made in good faith and the 220,000 jobs created by the biofuel sector on the basis of existing policy. The European ethanol industry alone has invested €8 billion.”

Ethanol, International

Valero Renewable Fuels Joins RFA

Joanna Schroeder November 28, 2016

Valero Renewable Fuels Company has become a member of the Renewable Fuels Association (RFA). Valero Renewable Fuels Company, a subsidiary of Valero Energy Corporation, is the third largest biofuels producer in the U.S. with a total annual production of 1.4 billion gallons per year. The company owns and operates 11 corn ethanol plants throughout the Midwest including plants in Iowa, Nebraska, South Dakota, Minnesota, Indiana, Ohio, and Wisconsin. In addition, Valero is the largest renewable diesel producer in the country and the largest independent refiner in the world.

“We are thrilled to welcome Valero Renewable Fuels to our membership,” said Renewable Fuels Association Board Chairman and Commonwealth Agri-Energy General Manager Mick Henderson. “Valero complements RFA as we advocate for continued growth and use of renewables. Through its vast ethanol plant footprint in the United States, Valero provides countless benefits to consumers by helping to clean the air, increase energy independence and boost local economies. We are proud to count Valero Renewables as an RFA member and look forward to the company being an active member as we work together to expand marketplace opportunities for ethanol.”

Valero Vice President of Alternative Fuels Martin Parrish, added, “Valero is proud of our high performing ethanol plants, their excellent safety record and commitment to the communities where we operate. Joining RFA provides a strong conduit to support our operations, especially as we cooperatively work to promote renewables, grow our ethanol market and provide opportunities to further strengthen the nation’s liquid fuel sector.”

Ethanol, Ethanol News, RFA

Pannonia Ethanol to Expand Hungary Biorefinery

Joanna Schroeder November 28, 2016

Photo Credit Pannonia Ethanol Zrt.

Pannonia Ethanol Zrt. has announced plans to expand its biorefinery in Hungary now that the company has secured a Euro 135 million credit facility agreement with a group of Hungarian banks. The expansion will enable the corn-ethanol plant to cut costs, increase corn buying and animal feed output as well as add additional jobs.

“The plant is already the largest biorefinery in Europe. This investment further reduces costs and increases production capacity across the board. It also supports the introduction of innovative new bioproducts that promise significant benefits for human and animal health,” said Mark Turley, CEO of Pannonia Ethanol’s parent company, Ethanol Europe Renewables (EERL). “The Dunaföldvár plant currently supports over 2,000 direct and indirect jobs in the Tolna County region. The expansion will increase employment further, both directly and through the plant’s strong economic multiplier effect. Maize purchasing from farmers will exceed 1 million tons in 2017,” added Turley.

Eric Sievers, EERL Investment Director added, “We are very pleased that this facility has been provided by a consortium of Hungarian banks, the Budapest Bank, Hungarian Export-Import Bank, K&H Bank and Raiffeisen Bank. The package provides new credit capacity for our normal working operations, finances an expansion of ethanol/animal feed production capacity and restructures existing low debt levels on a more economic basis.”

corn, Ethanol, International

Study Looks at Biofuel Crops, Land Change & Climate

Joanna Schroeder November 28, 2016

A new study has looked at how converting land to grow biofuel crops impacts greenhouse gas emissions. Researchers at the DOE Argonne National Laboratory found that in the past analyses only looked at the changes in the amount of carbon stored in the soil and vegetation of these converted lands that were previously forests, grasslands or pastureland.

Argonne environmental analyst Hao Cai, environmental scientist Jiali Wang and climate scientist Yan Feng observe a U.S. map that plots the albedo effects observed across various agro-ecological zones. (Image by Wes Agresta/Argonne National Laboratory.)

So the research team studied the reflectivity effects of converting land, or the “albedo,” which is the amount of incoming solar energy that gets reflected back into space. These changes, combined with other factors, then contribute to climate changes in GHG emissions according to the researchers. The study was published in the The Royal Chemistry Society’s Energy & Environmental Science.

The results of the study show that when a piece of land is changed to produce a biofuel crop, albedo effects changed as well. When looking at only albedo change effects, the team found that land converted to producing corn ethanol had a net cooling effect on the climate. However, when the land was converted to grow several next generation biofuels including miscanthus and swithgrass, the albedo showed a warming effect. However, when the researches looked at carbon stock changes (another factor in climate change) in addition to albedo, corn and switchgrass ethanol showed net warming effects associated with land use change while miscanthus grass ethanol exhibits a net cooling effect.

The work outlines the importance of considering changes in reflectivity when assessing land use change-induced effects of biofuel production on climate. “Our analysis is helping build a fuller picture of the climate effects of biofuel feedstock production,” said Hao Cai, an Argonne environmental analyst and lead author of the study.

biofuels, Climate Change, Indirect Land Use, Research

WEO-2016 Finds Renewables, Natural Gas Future Winners

Joanna Schroeder November 25, 2016

According to the 2016 World Energy Outlook (WEO-2016), the winners to reach energy demand growth through 2040 will be renewables and natural gas. The annual report is published by the International Energy Agency (IEA) and finds that the era of fossil fuels is long from over. Natural gas will continue to expand and coal and oil usage will decrease. This underscores the need for more ambitious climate goals throughout the world finds the study. WEO-2016 finds, however, that government policies along with energy sector cost reductions will enable a doubling of renewables. Other progress can be made, finds the report, through energy efficiency improvements.

“We see clear winners for the next 25 years – natural gas but especially wind and solar – replacing the champion of the previous 25 years, coal,” said Dr Fatih Birol, the IEA’s executive director. “But there is no single story about the future of global energy: in practice, government policies will determine where we go from here.”

As the energy mix around the world continues to transform, WEO-2016 states that there will be risks to energy security – especially related to oil and gas. Global demand for these energy sources will continue to grow through 2040, in part due to lack of easy alternatives to oil in road freight, aviation and petrochemicals, finds the report. Also during this time oil demand from passenger cars will decline even though the number of cars on the road will double over the next 25 years. This will be accomplished through mileage improvements and the use of biofuels and electric vehicles, according to WEO-2016.

A major step forward in curbing climate change is the Paris Agreement that took effect November 4, 2016. However, WEO-2016 calls for more ambitious programs to meet climate goals including limiting the rise of average global temperatures to 2.7°C by 2100. While the path is tough, the report argues climate goals can be achieved if across the board policies to accelerate low carbon technologies and energy efficiency are put in place.

“Renewables make very large strides in coming decades but their gains remain largely confined to electricity generation,” added Dr Birol. “The next frontier for the renewable story is to expand their use in the industrial, building and transportation sectors where enormous potential for growth exists.”

bioenergy, biofuels, Carbon, Climate Change

Advanced #Biofuels Industry Supports Increased RVOs

Joanna Schroeder November 25, 2016

The advanced biofuels industry has come out in support of the EPA’s increased Renewable Volume Obligations (RVOs) as part of the 2017 Renewable Fuel Standard (RFS). The Cellulosic Biofuel category will increase from 230 million gallons in 2016 to 311 million gallons in 2017. Renewable fuels in this category must reduce lifecycle greenhouse gas emissions by at least 60 percent as compared to traditional fuels. In addition, the Advanced Biofuels category is increasing 19 percent going from 3.61 billion to 4.28 billion. This category encompasses biomass-based diesel, cellulosic biofuel, and other biofuels that achieves at least 50 percent lifecycle greenhouse gas emissions reductions.

In response to the new rule that increases volumes across all categories, Michael McAdams, Advanced Biofuels Association (AFBF) president, stated, “We congratulate EPA on getting the RVO rule out ahead of schedule. Like last year, it sends a clear signal to the market of the federal government’s intention to stand behind the RFS program. We are also happy to see the confidence and support of the biomass-based diesel pool by continuing to recognize the fact it is growing steadily. And, we welcome increases in both the advanced and cellulosic pools. Those are truly the fuels of the future that deliver the most significant contribution to sustainability.”

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section noted that the organization and its members welcome the EPA’s change of course. “By abandoning its legally flawed reliance on general waiver authority as a basis for departing from statutory biofuels volumes requirements, EPA has sent a strong signal that it will support the biofuels industry and grow advanced and cellulosic biofuel production.” Erickson added that “the final 2017 rule adheres to Congress’s intent in enacting the RFS statue and ends several years of instability in the RFS program….

BIO continues to strongly disagree with EPA’s prior interpretation of its general waiver authority under the RFS statute and with EPA’s ongoing stockpiling of carryover RIN credits. The RFS statute does not allow EPA to rely on demand-side factors under the oil industry’s control as a basis for decreasing the fundamental requirement to use as much renewable fuel as the biofuel industry can produce. And the statute does not grant the agency leeway to create a permanent carryover RIN bank.”

Advanced Biofuels Business Council Executive Director Brooke Coleman stated, “Administrator McCarthy and her team deserve a lot of credit. Administrator McCarthy said they would get the RFS back on track and they did. It’s a strong rule across the board and moves the conversation forward. We have moved past the imaginary blend wall. The biofuels industry continues to innovate. The merchant refiners saying they cannot comply with the RFS are now implementing cost-effective changes at their refineries to blend more renewable fuel. President-elect Trump will no doubt hear from a shrinking group of RFS naysayers, but I think he understands that the RFS is working, supports a strong manufacturing base across the country and reduces our dependence on foreign oil. We are looking forward to working with EPA and the next Administration on further accelerating the commercial deployment of advanced biofuels.”

advanced biofuels, BIO, Cellulosic, RFS

Blessings on this Thanksgiving

Chuck Zimmerman November 24, 2016

At this time of Thanksgiving we pause to count our blessings.

The freedom of this great country in which we live
Its opportunity for achievement and freedom to worship
The friendship and confidence you have show in us

For this and so much more we are deeply thankful.

Best wishes for a Happy Thanksgiving from the ZimmComm/AgWired team.

Company Announcement

#Biodiesel Industry Reacts to 2017 RVOs

Joanna Schroeder November 23, 2016

Today the U.S. Environmental Protection Agency (EPA) has issued the final 2017 Renewable Volume Obligations (RVOs) with increased volumes for all categories as part of the Renewable Fuel Standard (RFS). The real winners of this news are the consumers, said the National Biodiesel Board (NBB) in a statement. Under the new RFS rule, Biomass-Based Diesel standards, of which includes biodiesel, will increase to 2.1 billion gallons in 2018. This is an increase from 2 billion gallons in 2017.

NBB CEO Donnell Rehagen said that the benefits of the RFS extend far beyond the biodiesel industry. The use of renewable fuels such as biodiesel support high paying jobs and clean air across the country.

“Though we are poised to top these numbers this year, growth in advanced biofuels still sends positive signals to the marketplace,” noted Rehagen.

Under the new RFS rule, the Advanced Biofuels category will increase to 4.28 billion gallons in 2017 up from 3.61 billion gallons in 2016. NBB said that Biomass-Based Diesel will continue to fill a large portion of this Advanced Biofuels category. Rehagen said that while the new standards reflect modest growth in the standards, they remain below the more than 2.6 billion gallons of biodiesel and renewable hydrocarbon diesel expected in 2016.

“While NBB applauds the increased volumes, there is room for more aggressive growth. The U.S. biodiesel industry can do more. The production capacity and feedstock are clearly available as the market is already topping these levels. Rehagen added, “We will work with the incoming Administration to help them understand the benefits provided by our growing domestic biodiesel industry and the potential to support additional jobs and investment in rural economies.”

American Soybean Association President Richard Wilkens, who is a soybean farmer from Greenwood, Deleware, said that although the levels provide opportunities, they don’t take full advantage of the opportunities that biofuels, such as biodiesel, provide. “EPA will raise the overall volumes relative to the Proposed Rule and increase the total Advanced Biofuels volume requirements for 2017 from 4.0 billion gallons to 4.28, an increase of 19 percent. That’s a plus for biodiesel as the primary source of Advanced Biofuels.” Wilkins noted, however, that EPA chose not to raise the Biomass-based diesel volume requirements within that Advanced Biofuel pool for 2018.

When EPA issued its proposed rule, ASA clearly stated that the 2.1 billion gallon mark did not adequately capture the capacity of the biodiesel industry,” he said. “To see the volume remain at 2.1 billion gallons as they were in the Proposed Rule is frustrating. We know we can do more.”

advanced biofuels, Biodiesel, NBB, REG, RFS

#Ethanol Industry Reacts to Increased RVO’s

Joanna Schroeder November 23, 2016

The U.S. Environmental Protection Agency (EPA) has released its the final Renewable Volume Obligations (RVOs) for the 2017 Renewable Fuel Standard (RFS). The rule has increased the conventional biofuels category that includes corn ethanol, to 15 billion gallons per year, up from 14.8 billion proposed back in May. With the news, the biofuels industry has come out to applaud the EPA.

“As more ethanol was blended with record-high consumption of gasoline this year, ACE urged EPA to increase the 2017 implied conventional biofuel volume to the statutory level of 15 billion gallons and we are very pleased EPA has agreed to do so,” said Brian Jennings, the executive vice president of the American Coalition for Ethanol (ACE). “For the last couple of years, EPA has unfortunately sided with oil companies and refiners instead of rural voters to ‘ride the brakes’ on RFS blending volumes, relying on excuses such as the make-believe E10 ‘blend wall’ and lower gasoline use to reduce renewable fuel use below statutory levels. But we are supportive of the move to increase volumes for 2017 without a ‘blend wall’ excuse. U.S. gasoline use is expected to rise again in 2017, so increasing RFS volumes will help restore some confidence to the rural economy and reassure retailers that it makes sense to offer E15 and flex fuels like E30 and E85 to their customers.”

“Nevertheless, we remain opposed to EPA’s misapplication of the RFS general waiver authority to use ‘infrastructure constraints’ as an excuse to limit renewable fuel use below statutory levels for 2014, 2015, and 2016, which is why we are party to Americans for Clean Energy et al. vs EPA, a lawsuit pending in the U.S. Court of Appeals for D.C. We look forward to the Court taking up our case early in 2017 and deciding in our favor.”

Growth Energy CEO Emily Skor said in a statement that the organization is looking forward to working with the EPA along with the Trump administration on further implementation of the RFS. She also stated, “We are pleased that the EPA’s rule finally achieves the statutory volume for conventional biofuel as called for by Congress. The Renewable Fuel Standard is our country’s most successful energy policy. It continues to inject much needed competition and consumer choice into the vehicle fuels marketplace. It enables greater consumer adoption of cleaner biofuels that displace toxic emissions and reduce harmful emissions, while creating American jobs, spurring innovation and lowering the price at the pump.

Today’s announcement by the administration validates the critical importance of cleaner burning, less expensive biofuels, like ethanol. The American ethanol industry is a true success story, and with increased volumes, producers can unleash their full potential to ensure that higher blends, such as E15, are available to consumers and producers can continue to innovate by leveraging 21st century fuels for 21st century cars.”

ACE, biofuels, Ethanol, Growth Energy, Iowa RFA, NCGA, RFS

RFA Thanks EPA for #Ethanol Commitment

Joanna Schroeder November 23, 2016

The Renewable Fuels Association (RFA) is thanking the U.S. Environmental Protection Agency (EPA) for its commitment to the Renewable Fuel Standard (RFS) by increasing renewable volumes across the board for 2017. This includes raising the conventional biofuel category back to where the statute intended – 15 billion gallons per year from 14.8 billion gallons as proposed in May of 2016. In response, RFA President and CEO Bob Dinneen said that they are very happy and at the end of the day, this is a win for consumers.

“What this means is that there will be additional gallons of high octane, low cost renewable fuels like ethanol available in the marketplace and consumers are going to benefit,” Dinneen told AgWired. He said it sends a strong single to investors that the EPA is behind this program and they can “invest with confidence with next generation biofuels and invest in confidence in the infrastructure to accommodate higher level blends. Because EPA with this rule is clearly demonstrating that it is not going to be looking backwards as API would like and is looking forward,” added Dinneen.

With 15 billion gallons of biofuels, including corn ethanol, blended in to the fuel supply, Dinneen said this gets ethanol to about 10.8 percent across the gasoline pool. This will drive, he continued, new gallons into E15 and other higher octane blends of ethanol.

When asked why the EPA had not raised the gallons sooner, Dinneen explained that the EPA believed there was not enough infrastructure to accommodate the levels required by the statute. But with infrastructure programs like USDA’s Biofuels Infrastructure Program, along with more terminals offering E15, the EPA is now confident the marketplace is ready for more biofuels. “So between rising gasoline demand enabling more E10, but certainly the rise in infrastructure enabling other higher level blends, EPA is more than comfortable at this point requiring 15 billion gallons,” said Dinneen.

Going forward, Dinneen said they will continue to watch the Hill in light of API’s campaign calling for the RFS to be restrained and to roll-back volumes to no more than 9.8 percent of ethanol to be used in gasoline.

“Well that’s just absurd,” said Dinneen, “when we can clearly get more than 10.8 percent that is going to be required of this RVO. But API is going to double-down on its campaign and that battle will continue. The Renewable Fuels Association, the ethanol industry and farmers across the country are going to fight hard to protect this program. The demand for corn through ethanol production has been the single-most value-added market for farmers and at a time when farmers are harvesting the single largest crop in history. For the American Petroleum Institute to be saying no, we need to be cutting back on this program, I think is a slap in the face to farmers and we will not let it happen,” said Dinneen.

To learn more about what the increased RVO’s mean for the ethanol industry, including continued efforts to increase infrastructure, listen to the interview with Bob Dinneen here: RVO Interview with Bob Dinneen, RFA

Audio, biofuels, E15, EPA, Ethanol, Ethanol News, RFA, RFS

Page 348 of 1,944
←
1
...
347
348
349
...
1944
→