#Ethanol Groups Submit CAFE Comments

Joanna Schroeder September 27, 2016

Comments regarding the goals of the CAFE-GHG standards were due yesterday to the U.S. Environmental Protection Agency (EPA) and ethanol organizations made their voices heard.

Comments submitted by the American Coalition for Ethanol (ACE) call for a federal pathway to be established to assist automakers to meet future mileage and environmental standards with higher blends of ethanol. Blends such as E30 would provide automakers with more octane. The comments were also submitted to the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB).

“ACE has been in dialogue with automakers, agricultural organizations, and government researchers to develop strategies and action plans to accelerate the transition of North American transportation fuels to higher-octane, lower-carbon renewable fuels such as ethanol,” said ACE Executive Vice President Brian Jennings. “If the agencies hope to fulfill the ambitious goals of the CAFE-GHG program going forward, a regulatory framework needs to be initiated immediately for lower-carbon, higher-octane fuel such as ethanol.”

Growth Energy’s comments focused on the benefits of using high octane mid-level ethanol blends in future optimized engines, such as increased vehicle efficiency, increased acceleration, and significant reductions in greenhouse gas emissions.

“Our comments highlight the wealth of available research that outlines the vital role that affordable, higher blends of ethanol can play in helping automakers achieve increasing future GHG and CAFÉ standards,” said Growth Energy Director of Regulatory Affairs Chris Bliley. “Furthermore, we encourage the agencies involved in this review to not only acknowledge the important role higher blends can play, but ensure they are part of the larger goal in achieving greater efficiency and a reduction in harmful emissions.”

Comments from the Renewable Fuels Association (RFA) stress how high octane, low carbon (HOLC) fuels can play an important role in helping automakers comply with increasingly stringent fuel economy and greenhouse gas emission standards in the 2022–2025 time frame.

“This is an important process because it will determine the path forward for future energy efficiency and environmental goals,” said RFA President and CEO Bob Dinneen. “EPA has correctly identified technologies that will effectively improve energy efficiency and reduce greenhouse gases. But the agency has failed to appropriately consider the fuels that will enable those technologies. That is an omission that must be addressed moving forward if future vehicles can in fact help us address climate change without backsliding on other critical air quality and public health priorities. We look forward to working with EPA and NHTSA as this process continues,” he added.

The written comments were submitted in response to the draft of the Technical Assessment Report (TAR) of the 2022-2025 model year CAFE standards. The organizations listed above are conducting a Mid-term Evaluation (MTE) of the program, as a means of determining if the standards set in 2012 can in fact be meet in 2025.

ACE, biofuels, EPA, Ethanol, Growth Energy, Octane

Sugarcane Producer ASSOBARI Earns RSB Cert

Joanna Schroeder September 26, 2016

Sugarcane producer ASSOBARI (Associação dos Fornecedores de Cana da Região de Bariri) has earned the Roundtable on Sustainable Biomaterials (RSB) certification – the first sugarcane producer in Brazil to do so. The certification is for the production of sugarcane specifically for 62 farmers and nearly 1,800 hectares of sugarcane plantations.

“RSB certification is the recognition that farmers in the Bariri region produce sugarcane in a sustainable manner, in accordance with global standards,” said Acácio Masson Filho, Assobari’s President. “RSB is an important organization to help us access the market for multi-products from sugar cane. Through RSB certification, Assobari farmers were able to implement tools to assess their potential environmental and social impacts and to carry out stakeholder consultations. The certification process also helped Assobari prepare internal procedures for chain of custody and learn how sugar cane producers can be linked to the biomaterials market.”

According to RSB, its certification is recognized by NGOs as the “most comprehensive and ambitious” biomaterials sustainability certification program in the world.

Rolf Hogan, RSB’s Executive Director, added, “RSB allows farmers and producers associations to earn their own certificates and be recognized as sustainable producers, and to be linked to sustainable supply chains which is key for many farmers. Also, sugar cane is one of the most important biofuel and biomaterial feedstocks for Brazil, so it is especially exciting to now have Assobari providing RSB certified materials for the industry. This movement forward indicates that RSB standards are applicable to the context of sugar cane in the region and provides a framework to implement sustainable practices by farmers associations.”

This certification was made possible by the Boeing Corporate Citizenship Program.

biofuels, biomaterials

Siouxland Ethanol Joins RFA

Joanna Schroeder September 26, 2016

Siouxland Ethanol has become the newest member of the Renewable Fuels Association (RFA). The ethanol plant is located near Jackson, Nebraska and began production in May of 2007. Today the biorefinery processes 24 million bushels of corn per year into 70 million gallons of ethanol per year and also produces multiple co-products including 2,000 tons of corn oil and 175,000 tons of distillers grains (DDGs). Siouxland Ethanol is also amidst an expansion project that when complete will increase yearly ethanol production by 15 percent.

“The Renewable Fuels Association is a tireless advocate for the ethanol industry and we are pleased to join its membership,” said Pam Miller, director of industry and investor relations and board chair at Siouxland Ethanol. “As we work to ensure the long term inclusion and growth of ethanol in America’s transportation portfolio, the Renewable Fuels Association’s leadership will be needed. We look forward to our membership.”

RFA President and CEO Bob Dinneen welcomed Siouxland Ethanol into the fold. “We are thrilled to announce that Siouxland Ethanol has joined our organization. The hardworking employees of the company have been producing ethanol for nearly a decade, with production increasing in order to provide consumers with the lowest cost, cleanest-burning and highest octane source in the world. We welcome Siouxland Ethanol to our membership and look forward to their contributions.”

Ethanol, Ethanol News, RFA

Green Plains Finalizes Abengoa Acquisition

Joanna Schroeder September 26, 2016

Green Plains Inc. has announced the completion of the acquisition of three ethanol plants from Abengoa Bioenergy. The biorefineries are located in Madison, Ill., Mount Vernon, Ind. and York, Neb and were purchased for approximately $237 million in cash plus some working capital adjustments. The ethanol facilities are currently in operation and will produce 236 million gallons per year of ethanol combined. With the purchase complete, Green Plains has sold the ethanol storage assets acquired from Abengoa to Green Plain Partners for $90 million.

“In the past 12 months, we have expanded our ethanol production capacity by approximately 50 percent. Adding the Illinois and Indiana locations provide us with a bigger and more diverse geographic footprint,” said Todd Becker, president and chief executive officer at Green Plains. “With nearly 1.5 billion gallons of production capacity, we are moving meaningful volumes across the agricultural and energy supply chains, further positioning us to serve both domestic and international markets efficiently and effectively.”

Husch Blackwell LLP acted as legal advisor to Green Plains in connection with the transaction. Carl Marks Advisors acted as financial advisors and DLA Piper acted as legal advisors to Abengoa Bioenergy.

biofuels, Ethanol

China Imposes Duties on U.S. DDGs

Cindy Zimmerman September 23, 2016

China’s Ministry of Commerce (MOFCOM) issued a preliminary ruling Friday claiming that U.S. dried distillers grains (DDGS) are being dumped and have caused injury to China’s DDGS industry and imposing immediate duties of 33.8 percent on the import value of the DDGS.

The U.S. Grains Council (USGC), the Renewable Fuels Association (RFA) and Growth Energy issued a joint statement saying they are disappointed in the action. “We are proud of the role that U.S. and Chinese DDGS have played in helping China’s animal feed industry to produce high-quality animal feed products to supply China’s rapidly growing meat industry, and in ensuring that Chinese consumers continue to have access to safe, affordable and nutritious protein products,” they stated. “We are confident that U.S. DDGS are not being dumped and are not causing or threatening injury to Chinese producers.”

USGC has been actively involved in the China situation since the government first announced it was investigating DDGs dumping earlier this year, attending a recent hearing on behalf of the U.S. industry in Taiwan.

“Our industry deeply appreciated the support that we received at the recent hearing in China from our Chinese customers, and we remain hopeful that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China’s interest,” the industry statement continued.

There’s no indication of when the Chinese government will issue a final decision on the matter.

Distillers Grains, Ethanol, Ethanol News, Exports, Growth Energy, International, RFA, USGC

Biogas Plant Trial Leads to Growth

Joanna Schroeder September 23, 2016

Longevity, a high degree of automation, low operating and maintenance costs, and the resulting cost efficiency were a central goal during design. A plant layout was developed which optimally accounts for the process’ biological demands, as well as permits and legal framework. Photo credit: Greenline.

German-based Greenline is planning a 3 MW biogas plant expansion after the successful trial of an industrial-scale biogas plant in Brandenburg. The biogas plant uses a substrate mix of sugar beet, grass silage and maize to produce energy. The plant was designed by Greenline and is operated by Biogas Osters & Voß GmbH & Co. KG from Groß Gottschow.

At full production, the plant ferments nearly 56,000 tons of corn, grass silage and sugar beets into twelve million standard cubic meters of biogas. The plant consists of steel-enamel elevated tanks for fermentation combined with concrete tanks for post fermentation and slurry storage. Unlike traditional biogas technology, this plant features elevated fermentation tanks allowing for less energy consumption compliments of gravitation. The plant also features a central stirring system that Greenline says enables difficult substrates to be economically processed. And with the concrete tanks serving double duty, additional cost efficiencies are achieved.

Other features of the biogas plant include a concrete bunker silo that stores nearly 30,000 tons of substrate with vertical walls with U-partitions used for compartment separation. The beet storage chambers features asphalt used as an acid-resistant coating. Beets are fed through an acid resistant stainless steel screw hopper while the corn and grass silage is feed through a solid compact container. The resulting biogas is the converted to standard gas by a combined organic and non-organic wet process, and then fed to the regional gas network belonging to HanseWerk AG (formerly E-On Hanse).

All together, Greenline says, the biogas plant design offers longevity, a high degree of automation, low operating and maintenance costs all leading to cost-efficient biogas production.

biogas, Waste-to-Energy

NCGA’s Role in Increasing #Ethanol Market Access

Joanna Schroeder September 23, 2016

Wesley Spurlock, National Corn Growers Association (NCGA) incoming president, farms on the Texas panhandle – in a state better known for oil than ethanol. While ethanol has gained considerable market share the last decade and the majority of gas sold in the U.S. has a 10 percent blend of ethanol (E10) Spurlock says that ethanol can, and should, continue to play a growing role in America’s fuel supply. And this is where market access becomes so important.

During an interview at the recent Farm Progress Show, Spurlock noted that one key to increasing market access is through infrastructure that can pump higher blends of ethanol such as E15, E30 and E85. Prime the Pump is one dedicated program that NCGA supports to assist retailers with installing this infrastructure. But the real focus, says Spurlock, is ensuring customers have the ability to purchase these higher blends and getting these higher blends in the market and available for purchase. He says that Prime the Pump helps retailers get blender pumps installed and the program has done a tremendous job of getting infrastructure built.

Spurlock noted that last year the USDA announced funds for ethanol infrastructure and when combined with Prime the Pump, in the last year or so there has been $210 million or so available specifically for ethanol infrastructure.

Another big boost for ethanol according to Spurlock? Wayne Fueling Systems has released fueling technology that is approved to blend up to E25. Spurlock said in the past, their pumps, like many other companies, were only approved to blend E10 – a barrier to E15.

“So if everything has the ability to pump at higher levels means that the auto industry and the fueling industry can use the E15, which is legal now, you’ll be able to find it rather than wondering why it’s legal and no one can buy it,” Spurlock explains. He adds that having infrastructure in place now for the future will give the auto industry, which is looking at higher ethanol blends to meet increasing octane and fuel economy standards, the confidence they need to move forward. “Ethanol is a great octane booster. So if we can have E25, we can push octanes higher.”

Learn more about market access the future of ethanol fuels in my interview with Wesley Spurlock: Interview with Wesley Spurlock, NCGA

2016 Farm Progress Show Photos

E15, Ethanol, Farm Progress Show, NCGA

USDA Grant to Explore Waste-to-Energy

Joanna Schroeder September 22, 2016

The U.S. Department of Agriculture (USDA) has awarded a Rural Business Development Grant to fund a feasibility study to evaluate converting a coal-fired power plant into a waste-to-energy transportation fuel production facility. Partners in the project include the City of Becker, Minnesota, where the power plant resides, Wenck and VONCO. The idea was created after Xcel Energy announced plans to phase out two of its three coal-fired power generating units at the Sherburne County Generating Station (SHERCO) sometime after 2023.

“Rural small businesses have a significant influence on the economic success of rural America,” said Minnesota State Director for USDA Rural Development Colleen Landkamer. “This funding is just one of the many steps USDA has taken to promote economic development, encourage job creation, and support infrastructure in rural communities.”

SHERCO currently employees 350 people and provides 70 percent of the city’s tax levy. As part of future of the power plant, Xcel has announced plans to replace existing generating capacity with a new natural-gas combined cycle unit and solar installation. Once completed the facility will only require only a fraction of the labor to operate. It is anticipated approximately 150 full-time jobs at the plant may be lost as a result of the unit shut-down. Therefore, one of the areas the feasibility study will evaluate is new employment opportunities along with financial augmentation for existing community businesses and industry diversification.

Becker City Administrator Greg Pruszinske said the city is committed to creating a prosperous local and regional economy by encouraging sustainable ventures that would result in job growth.

Erin L Heitkamp, Global Sustainability Practice Leader for Wenck, underscored the economic opportunity that the biofuels project represents. “There is a community and regional need for economic growth and diversity, and this project represents a perfect opportunity to capture the full value inherent in waste organic materials through the creation of jobs, economic growth, and environmental benefits.”

advanced biofuels, Waste-to-Energy

Borregaard Invests in Bioethanol Upgrade, Biogas

Joanna Schroeder September 22, 2016

Norway company Borregaard has announced a bioethanol upgrade project. The company is committing NOK 63 million to the project that includes a new facility to capture and store biogas. Norwegian government agency Enova has awarded Borregaard a NOK 18.9 million grant. The funds are given to projects that promote environmentally friendly restructuring of energy end-use renewable energy production and new energy and climate technology.

As part of the plant improvements, the company will be installing more advanced production technology that will significantly reduce energy requirements during the bioethanol production process. In addition, Borregaard is adding technology that will enable the biofuel to be produced without the use of water.

The ethanol biorefinery upgrade will also include a biogas plant to capture process residues. The resulting energy will then be used to power the plant.

The project work is expected to begin during the second half of 2016. The bioethanol rebuild will be completed in 2017, and the biogas installation will be finished in 2018.

advanced biofuels, biogas, Ethanol

Rep Black Intros Biodiesel Tax Credit Extension Bill

Joanna Schroeder September 22, 2016

Another federal bill has been introduced to extend the biodiesel tax credit. Rep. Diane Black (R-Tenn.) has introduced the “Biodiesel and Renewable Diesel Incentive Extension Act of 2016” (H.R. 5994). The bill extends the tax credit through 2018 and according to Black, would help fuel retailers continue to sell biodiesel blends at a cost competitive price as compared to traditional diesel. Unless the biodiesel tax credit is extended, it is set to expire at the end of this year.

The National Association of Truck Stop Owners (NATSO) applauded the introduction of the bill, VP of Government Affairs David Fialkov said of Black’s support of biodiesel, “Renewing the biodiesel blenders’ tax credit is the right decision for both fuel retailers and the American people. Without a blenders’ credit, fuel prices across the country will inevitably increase, which in turn would increase the costs of shipping while driving customers away from cleaner burning fuels. By extending the biodiesel tax credit, fuel marketers will be able to increase the volume of cleaner-burning fuels in the United States while simultaneously offering customers a lower price. It’s a win-win for everybody.”

The Advanced Biofuels Association (ABFA) joined NATSO in commending Rep. Black, stressing this legislation would continue to protect those who are investing in the blending equipment and are selling all the fuel in the U.S., specifically the small producers, users of biodiesel and renewable diesel and the distributors. Both organizations say the bill also advances consumer consumption. The $1.00 per gallon biodiesel blenders’ tax credit enables fuel retailers to price the biofuel competitively at the pump.

NATSO also says that Congressional failure to renew the tax credit, or convert the tax credit from a blenders’ credit to a producers’ credit, would drive up biodiesel prices to a degree that would diminish consumer interest in the product, ultimately hindering U.S. efforts to advance the utilization of cleaner burning fuels.

advanced biofuels, Biodiesel, Legislation

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