Illinois-based HWRT Oil Company will soon be the first company in the United States to offer pre-blended 15% ethanol at the terminal level, something the Renewable Fuels Association (RFA) is calling a “game-changer” for increasing access to E15.
RFA Vice President of Industry Relations Robert White talks about why this is such a big deal in this edition of the “Ethanol Report.”
Listen to the Ethanol Report: Ethanol Report on E15 at Fuel Terminals
Our latest ZimmPoll asked the question, “What do you think about the Senate’s GMO Disclosure Bill?
The Senate has passed it’s version of the GMO Disclosure Bill followed by the House passing the National Bioengineered Food Disclosure Standard, and the President is expected to sign the bill into law soon. However, 40 percent of voters believe the legislation is bad for everyone.
Here are the poll results:
Good for Ag – 10%
Good for consumers – 5%
Good for both – 25%
Bad for everyone – 40%
Other – 20%
Our new ZimmPoll is live and asks the question, Is the Trump-Pence Republican ticket good for agriculture and biofuels? During his campaigning Trump has been a vocal supporter of biofuels visiting an ethanol plant in Iowa last summer and has repeatedly said he could “be a farmer“. However, one-term Indiana Governor Mike Pence is being heralded by the ag industry as understanding and supporting many facets of agriculture from small farms to large agribusinesses.
Richmond BizSense is reporting that Vireol Bio Energy, a bankrupted ethanol plant located in Virgina, confirmed they will pay creditors around $0.29 for every $1 they’re owed by the company. This amounts to about $1.7 million to potentially be paid out on around $4.98 million in debt claims.
Ricardo Energy & Environment has found that a higher use of ethanol blends in Europe would contribute to a 14.1 percent greenhouse gas emissions (GHGs) reduction in the continent’s transportation sector even after taking into account possible land use change (ILUC) emissions. The new study was commissioned by ePURE and looks at the potential contribution ethanol could play in reducing GHG emissions in the transport sector through 2030.
Building on previous research, this study focused on the introduction of E20 (20% ethanol, 80% gas) high-octane fuel, along with vehicles optimized to run more efficiently on the E20 fuel blend. Europe has set a goal of 12-20 percent reduction in emissions in the transport sector by 2030.
In particular the study found:
“European ethanol already makes a strong contribution to decarbonising Europe’s transport sector and can help to reduce the climate impacts of the fuels we use to power petrol cars,” noted Robert Wright, secretary-general of ePURE. “This study shows that ethanol’s climate benefits can be further enhanced through the use of higher ethanol blends. E20 fuel is a win-win for Europe’s climate because it significantly reduces emissions and its high-octane content increases engine efficiency resulting in less fuel consumption.”
Ricardo says its findings also validate a meta-analysis by the University of Vienna, which found that ethanol makes petrol combust more cleanly and efficiently. The study concludes that policy makers should explore the deployment of high-octane E20 fuel and vehicles with E20 optimized engines in the context of reducing transport emissions by 2030 and in the longer-term to 2050.
Abengoa Bioenergy Biomass of Kansas has retained Ocean Park Advisors to sell its cellulosic ethanol plant in Hugoton, Kansas. The biorefinery, one of the first using biomass to produce cellulosic ethanol and renewable electricity in the U.S. went online in October of 2014. The sale is part of the company’s filings under Chapter 11 bankruptcy.
According to Ocean Park Advisors, there is also an opportunity for interested parties to acquire the cellulosic technology and other intellectual property assets that are owned by Abengoa Bioenergy New Technologies, LLC a debtor in a separate bankruptcy case pending in Delaware, in connection with or separately from, the sale of the Hugoton plant.
Interested parties are encouraged to submit proposals by mid-August with target closing date by the end of October 2016.
HWRT Oil Company will soon be the first company in the United States to offer pre-blended 15% ethanol at the terminal level.
Currently there is no access to E15 at local fuel terminals and retailers across the country interested in offering the fuel have done so by diluting a higher ethanol blend (like E85) with regular unleaded, a process that takes additional storage and equipment.
Beginning September 16, HWRT President Matt Schrimpf says, they will include E15 in its slate of product offerings at terminals located in Hartford, Illinois; North Little Rock, Arkansas; Norris City, Illinois; and Seymour, Indiana.
“HWRT was one of the very first terminals in the country to offer automated ethanol blending at the terminal rack, so the move to E15 is a natural progression for our company. We have over 30 years of experience blending ethanol, and we look forward to helping our customers experience the benefits E15 can offer,” said Schrimpf.
Renewable Fuels Association Vice President of Industry Relations Robert White calling this a “game-changer” for increasing access to E15. “HWRT’s leadership will give thousands of retailers in multiple states access to a new fuel option, one that consumers are embracing quickly where available,” said White. “Offering E15 at the terminal level provides new opportunities for retailers and greater choice for consumers.”
RFA has been working with HWRT on a number of issues related to offering E15 at the terminal, including regulatory compliance, participation in the EPA’s required fuel survey, and adoption of RFA’s Misfueling Mitigation Plan (MMP). RFA will immediately begin working with interested retailers serviced by the four HWRT-owned terminals to assist them with the transition to offering E15 at retail. HWRT plans to eventually expand the E15 offering to 17 additional terminals in a total of seven states where the company holds positions.
Hawaii Governor David Ige has signed the state’s Renewable Fuels Production Tax Credit into law. The bill is another mechanism the state is using to reach its goal of generating 100 percent of its electricity from renewable resources by 2045. Hawaii has the highest energy costs across America’s 50 states. Pacific Biodiesel Technologies President Robert King attended the formal signing, another positive step in the use and promotion of biodiesel in the state. Also this month the city of Maui eliminated its 9 cents per gallon biodiesel tax.
Among those attending the signing ceremony included (L to R) Warren Bollmeier, Hawaii Renewable Energy Alliance; Sharon Moriwaki,Hawaii Energy Policy Forum; Gov. David Ige; Robert King, Pacific Biodiesel. Photo Credit: Pacific Biodiesel Technologies.
Hawaii State Act 202 is a nonrefundable tax credit for the production of renewable fuels, including biodiesel, which will take effect in 2017 for five years. The annual dollar amount of the tax credit is equal to 20 cents per 76,000 Btu of renewable fuel (the equivalent of one gallon of ethanol). The tax credit is capped at $3 million per year. This news comes on the heels of improved biodiesel tax credits in the state of Iowa and as the industry fights for the extension of the federal $1 per gallon biodiesel credit to three years and for domestic producers only.
“This is an excellent incentive because it will encourage investors to fund renewable fuel production facilities in Hawaii, creating jobs and energy security while fighting climate change and reducing environmental damage,” said King. “We’ve been diligently working for the past six years to help pass this legislation.”
Pacific Biodiesel was recently awarded a sustainability certification by the Sustainable Biodiesel Alliance and is Hawaii’s only commercial biofuel producer.
Wisconsin drivers favor ethanol blends up to and including E15 at the pump by a 2 to 1 margin. A new survey commissioned by the Wisconsin Corn Growers Association found that 62 percent of individuals support the use of E15 fuel versus only 34 percent who oppose it. The support was consistent across all regions of the state and demographic groups.
“These results show that Wisconsinites have become well educated on the benefits of using ethanol over the last few years,” said Wisconsin Corn Growers Association (WCGA) President Casey Kelleher. “It’s outstanding to see how consumers have increased their awareness of the benefits of cleaner burning fuel blended with ethanol, in the face of misinformation transmitted by Big Oil.”
The poll also showed Democrats had a 74 percent favorable view of E15, while Republicans had a 63 percent favorable view. Another interesting finding was respondents in the Milwaukee area showed a 59 percent favorable rating, compared to 64 percent for the rest of the state. While E15 fuel is not yet available at many retail stations, more retailers are adding blender pumps that can dispense higher ethanol blends.
“Ethanol, specifically E15, is still a new product for most consumers, and this poll shows that more and more people understand the benefits of this homegrown fuel,” added Kelleher. “That’s why retailers are making this cleaner burning fuel option more available to drivers.”
Kelleher noted that one reason individuals support the use of ethanol is because it’s made from corn grown locally, helping the Wisconsin economy, with 79 percent of respondents agreeing with that statement. The poll found that people have an overwhelmingly positive view about those who grow corn in the state with corn farmers receiving a positive rating of 72, on a scale of 1 – 100. Seventy-eight percent of respondents agreed with the statement that “compared to 30 years ago, farms that grow corn are more efficient with more product produced from the same land for less cost.”
In tandem with Boeing’s 100th anniversary and celebrations worldwide, the company, along with South African Airways (SAA) and Mango, flew their first passenger flight with renewable biojet fuel. The flight flew 300 passengers from Johannesburg to Cape Town on a Boeing 737-800s using a blend of 30 percent aviation biofuel produced from Solaris, a nicotine-free tobacco plant. The biojet fuel was produced by Sunchem, refined by AltAir Fuels and supplied by SkyNRG.
“SAA is committed to a sustainable future and this flight highlights the bold steps we are taking to protect and preserve our environment while creating opportunities for the economic development of our people,” said Musa Zwane, acting CEO of SAA. “We are pleased to join the ranks of global airlines who have made a commitment to a better and cleaner way of flying.”
Back in 2013, Boeing and SAA launched their sustainable aviation fuels collaboration. Then in 2014 Project Solaris became the first project that focused on converting oil from the Solaris plant seed into biojet fuel. Following in 2015, farms in Limpopo Province of South Africa, from which the biofuel for the inaugural flight was sourced, achieved certification from the Roundtable on Sustainable Biomaterials (RSB). The initiative is not only designed to reduce climate impact in the air, but is also designed to improve the health of South Africans and provide rural development, economics and employment opportunities for farmers through the production of Solaris and other sustainable feedstocks.
“It is fitting that on our 100 year anniversary we are flying on fuels that not only power the flight, but ensure a sustainable future for our industry,” added Miguel Santos, managing director for Africa, Boeing International. “This project is a great example of environmental stewardship that delivers economic and health benefits to South Africa.”
The partners also launched a stakeholder and sustainability plan called the Southern Africa Sustainable Fuel Initiative (SASFI) to ensure a long-term domestic fuel supply for SAA and other regional fuel users. The goal is to scale-up over the next several years to gain additional biofuel capacity. If successful, farmers will be able to tap into local and global demand for certified feedstock without adverse impact to food supplies, fresh water or land use.
It’s not too late to register for the Pellet Fuels Institute’s 2016 Annual Conference taking place July 24-26, 2016 at the Omni Grove Park Inn in Asheville, North Carolina. There will be a comprehensive overview of the U.S. pellet fuels industry along with a keynote presentation and major announcement by American Forest Foundation President & CEO Tom Martin; an in-depth look at policy and regulatory activities affecting the pellet fuels market; a discussion on the larger global trends for pellet fuels, with experts from industry leaders Drax and Enviva; ideas for new market opportunities for pellet fuels manufacturers; and more.