Court Rejects Oil Industry Challenge to RFS

Cindy Zimmerman

A D.C. Circuit Court ruling on Tuesday upholds EPA’s Renewable Fuel Standards for 2020-2022 and rejects the oil refining industry’s challenges to the rule. The Court found that EPA acted appropriately in setting RFS standards for those years, including a supplemental volume requirement to comply with a 2016 D.C. Circuit Court decision.

“Once again, renewable fuel producers claim that EPA’s standards are set too low, while petroleum refiners contend they are too high,” read the court’s opinion. “We hold that EPA complied with the law and reasonably exercised its discretion in setting the renewable fuel requirements for the three years at issue. We therefore deny the petitions for review.”

Renewable Fuels Association (RFA) President and CEO Geoff Cooper said the decision will help set the tone for future RFS rulemakings. “Specifically, we are pleased that the Court confirmed EPA’s approach to assessing certain statutory factors and considering the benefits of renewable fuels,” said Cooper. “Further, we are strongly encouraged by the Court’s confirmation of EPA’s authority to account for potential small refinery exemptions on a prospective basis when setting standards. Finally, we are pleased with the Court’s decision to uphold EPA’s authority to impose a supplemental 250-million-gallon volume in 2022 to make up for the volume that EPA improperly waived in 2016.”

RFA and other biofuel stakeholders intervened in the lawsuit in support of EPA.

EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS

Clean Fuels Makes Governing Board Changes

Cindy Zimmerman

Clean Fuels Alliance America announced recent changes within its Governing Board.

Courtney Lawrenson, Vice President – Oils and Energy at AGP, has been appointed by the board to serve as Second Vice-Chair succeeding Gary Louis who recently retired from his role with Seaboard Energy as as President and CEO. Peter Ostenfeld-Rosenthal, incoming President and CEO at Seaboard Energy, joins the board as a new member replacing Louis. In addition, Kerry Fogarty, Quality Control Manager at Incobrasa Industries, Ltd. joined the board filling a vacancy left by the resignation of Danielle Brannen, who represented New Leaf Biofuel.

Clean Fuels has also welcomed several new members over the past eight months who share a commitment to sustainable industry growth. These include Alliance Technical Group, North Carolina Soybean Producers Association, Nuseed, PepsiCo, RenStar, RICHARD, Westmor Industries, WayTrade.

“We are witnessing unprecedented growth driven by increasing awareness of the environmental and economic benefits of our fuels,” said Donnell Rehagen, Clean Fuels CEO. “Our Governing Board and our members play a vital role in advocating for policies that support this growth and drive innovation in clean fuel technologies.”

Biodiesel, Clean Fuels Alliance

LanzaTech Earnings Soar on SAF

Cindy Zimmerman

LanzaTech is reporting a six percent increase in revenue the first quarter of this year over 2023, thanks in part to a boost from its sustainable aviation fuel (SAF) investment in LanzaJet.

“The robust growth in LanzaJet and the SAF market more broadly mirrors the rising demand for our waste-based ethanol, reflecting the expansion and impact of our commercial project pipeline, as well as the growing focus on and adoption of alternative aviation fuels. We’re laying the groundwork for the emerging carbon economy, supported by our steadfast commitment and clear financial path forward, ensuring our efforts today shape a sustainable, deliberate future.” said Jennifer Holmgren, Board Chair and Chief Executive Officer of LanzaTech.

LanzaJet opened its 10 million gallon per year ethanol-to-sustainable aviation fuel (SAF) facility in January 2024 and is on track for production of fuel in the second quarter 2024. Located in Soperton, Georgia, LanzaJet Freedom Pines Fuels represents one of the most promising SAF technologies in nearly a decade to reach commercial readiness.

aviation biofuels, biojet fuel, Ethanol, Ethanol News, SAF, Uncategorized

Clean Fuels Celebrates Ag on the National Mall

Cindy Zimmerman

DC Water truck powered by 100% biodiesel on National Mall

Clean Fuels Alliance America was one of 30 organizations and 25 equipment manufacturers on the National Mall this week for the second Celebration of Modern Agriculture spotlighting the Future of Food and Farming.

Clean Fuels Director of Public Affairs and Federal Communications Paul Winters says they had a good local message for visitors who live in the DC area. “We’re trying to send a message that this is a benefit for people in DC who live in the urban environment,” said Winters. “The DC Department of Water has a truck here on display and it runs on 100 percent biodiesel…The biggest benefit for DC residents is they get cleaner air.”

Winters said they were able to talk to visitors about the benefits of clean fuels, while also chatting with legislative and regulatory people about priorities like getting the GREET model right for the future of crop-based sustainable aviation fuel (SAF).

Listen to an interview with Winters from DC.
AEM Ag on the Mall - Paul Winters, Clean Fuels Alliance America 7:34

2024 Celebration of Modern Agriculture on the Mall

Audio, Biodiesel, Clean Fuels Alliance, Equipment

March Ethanol and DDGs Exports Hit 2 Year Highs

Cindy Zimmerman

U.S. exports of both ethanol and the co-product dried distillers grains (DDGS) were higher in March, according to the latest analysis from the Renewable Fuels Association.

March U.S. ethanol exports increased 15% to a 23-month high of 159.3 million gallons (mg), with 97% bound for just ten markets.

The largest share (30%) transferred to Canada, our top customer for the 36th consecutive month despite a 1% decrease from February. Denatured fuel ethanol accounted for 93% of the 47.6 mg crossing the border. Exports improved by 61% to India (21.5 mg) and doubled to the European Union (20.0 mg)—primarily shipped to the Netherlands. Other larger markets included the United Kingdom (19.0 mg, -10%), Singapore (13.5 mg, +124% to a record high), Colombia (12.0, -20%), and South Korea (7.5 mg, +99%). Brazil remained absent from our export market, continuing a 22-month run. Year-to-date ethanol exports totaled 448.3 mg, which is 27% more than last year at this time.

DDGs exports were up 7% to 1.06 million metric tons, which is the the largest volume since June 2022.

Shipments to Mexico scaled back 34% to 171,815 mt yet were robust enough to secure its position as our largest customer for the third straight month. Exports bolstered to other larger markets, including South Korea (up 8% to 142,829 mt), Turkey (quadrupled to 122,027 mt), Indonesia (up 29% to a 4-year high of 111,044 mt), Vietnam (up 39% to 90,807 mt), Colombia (doubled to a record 73,304 mt), and Canada (up 13% to 55,967 mt). The remaining 30% of U.S. DDGS exports were dispersed across 32 countries worldwide. Year-to-date DDGS exports totaled 2.94 million mt, 21% ahead of last year at this time.

Distillers Grains, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

US Ethanol Industry Seeks to Challenge EU SAF Regulation

Cindy Zimmerman

The Renewable Fuels Association and LanzaJet are among U.S. ethanol interests seeking to intervene in a legal challenge of the European Union’s ReFuelEU Aviation Regulation, which effectively bans the use of renewable, crop-based biofuels like corn ethanol as a feedstock for decarbonizing the aviation sector. LanzaJet operates the world’s first ethanol-to-jet biorefinery in Georgia. Also collaborating in the intervention are U.S. Grains Council and Growth Energy.

The application to intervene in the proceedings supports a challenge brought by ePURE, a trade association representing European ethanol producers, and Pannonia Bio, one of Europe’s largest ethanol producers. Their application seeks to annul the relevant provisions of the ReFuelEU Aviation Regulation, which was adopted by the EU in 2023 and is set to take effect in 2025. A similar challenge was brought against the FuelEU Maritime Regulation, and members of the U.S. ethanol industry are seeking to intervene there, as well.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, SAF

Ethanol Report on 40B SAF Tax Credit and Beyond

Cindy Zimmerman

The 40B tax credit guidance and modified GREET model released April 30 by U.S. Treasury lays the groundwork for U.S. ethanol producers and farmers to participate in the emerging market for sustainable aviation fuels (SAF).

But since 40B expires at the end of this year, all the attention will now turn to implementing the 45Z credit to start next year, and the Renewable Fuels Association is already working on the next steps.

In this edition of the Ethanol Report podcast we get some of the details from US Treasury Secretary Janet Yellen and USDA Secretary Tom Vilsack, RFA Senior VP, Government & Public Affairs, Troy Bredenkamp, and Mitchell Hora, Continuum Ag.

Ethanol Report 5-2-24 22:11

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

Audio, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA, SAF

Nebraska Kicks Off Renewable Fuels Month

Cindy Zimmerman

Biofuel supporters join Gov. Pillen for proclamation

Nebraska Gov. Jim Pillen signed a proclamation Wednesday to officially kick off May as Renewable Fuels Month in the state.

The proclamation was made during a ceremony at the State Capitol underscoring the pivotal role that renewable fuels play in the state’s economy, environment and energy security. The governor was joined by representatives from Renewable Fuels Nebraska, the Nebraska Soybean, Corn and Ethanol Boards alongside their respective grower associations.

“Renewable fuels like ethanol, biodiesel, renewable diesel and sustainable aviation fuel represent the best of our state,” said Tony Leiding, President of Trenton Agri Products and Renewable Fuels Nebraska. “Nebraskans are finding new and exciting ways to meet demand while reducing the impact on the environment with products grown right here at home.”

According to the Nebraska Ethanol Board, the month of May marks the beginning of the summer driving season, making it an ideal time for Renewable Fuels Month to highlight the importance of ethanol, renewable diesel, and biodiesel to the state.

Nebraska is the second-largest producer of ethanol in the country, and legislation passed by the 2024 Nebraska Legislature provides a tax credit for sustainable aviation fuel (SAF) produced in Nebraska. Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel.

Biodiesel, biofuels, Ethanol, Ethanol News

Corn Growers Disappointed in GREET Model Update

Cindy Zimmerman

National Corn Growers Association (NCGA) farmer leaders are expressing concern about the final guidance on eligibility for the Sustainable Aviation Fuel 40B tax credits released by the Biden administration this week.

Specifically, NCGA is concerned with updates made to the Department of Energy’s GREET model, which requires farmers to bundle the use of no-till practices, enhanced efficiency fertilizers and cover crops for their grain to meet the standards now required to qualify for the tax credit.

“We are deeply disappointed that this updated model requires farmers to implement environmental practices that are not practical for all acres of the large and varied geographic region in which corn is grown,” said Minnesota farmer and NCGA President Harold Wolle. “This requirement in GREET will significantly hinder the chances corn growers have in accessing the sustainable aviation fuel market, even as higher blends of corn ethanol offer great promise in the country’s fight against greenhouse gas emissions and climate change.”

Wolle said NCGA will increase their advocacy efforts on the next phase taking effect in 2025, the 45Z tax credit, to improve the changes Treasury made to the GREET model.

corn, Ethanol, Ethanol News, NCGA, SAF

Farmer Consultant Digs Into SAF Tax Credit Guidance

Cindy Zimmerman

Mitchell Hora, Continuum Ag, on panel at 2024 National Ethanol Conference

Iowa farmer and consultant Mitchell Hora, Continuum Ag, spent some time Wednesday morning breaking down the 40B sustainable aviation fuel (SAF) tax credit guidance released this week for farmers hoping to be eligible.

To qualify under the guidance, corn farmers have to do cover crop, no-till, and enhanced efficiency fertilizer, while soybean farmers are required to cover crop and no-till. However, Hora says it’s unlikely anyone will qualify this year under 40B. “The crop you grew last year probably didn’t qualify for all these check the box items and you definitely didn’t have a written plan, which is what’s required,” said Hora. “The crop we’re going to grow this year…nobody is really going to make any tax credits.”

The good news is that this lays the groundwork for 45Z. “There’s a very high chance that they actually switch away from this check-the-box program to use the actual GREET score, which is what we want,” said Hora. “It does lay out very clearly what qualifies and how to verify and prepare ourselves.”

Hora also noted that the revised GREET model in the guidance included a major surprise when it came to indirect land use change (ILUC). “We’ve been thinking that the indirect land use change would go up…but they did the opposite. It actually went down a little bit!….Massive win for American farmers,” said Hora.

There were over 400 farmers and other stakeholders on Hora’s webinar which ran for an hour and still was not able to address all the questions. Continuum Ag has its TopSoil® Summit coming up June 3 in Riverside, Iowa which will be focused on Carbon Intensity to help prepare for the SAF tax credits. Continuum recently introduced CI Certification as a product for farmers to earn premiums for producing lower carbon intensity grain while ensuring secure data control.

Listen to Hora’s summary of the 40B SAF tax credit guidance:
Mitchell Hora, Continuum Ag 12:53

Audio, aviation biofuels, corn, Ethanol, Ethanol News