USGC Heads to Egypt to Promote DDGS

Joanna Schroeder

The. U.S. Grains Council (USGC) recently returned from a trip to Egypt to discuss using dried distillers grains (DDGS), a by-product of corn-based ethanol production, as feed for its growing aquaculture industry. Also on the trip was USGC member Mirasco who has a large client base in the Egyptian aquaculture industry.

“Egypt has the most active and the largest aquaculture industry in the region,” said Hesham Hassanein, USGC regional director for the Middle East and Africa. “But this growing sector only has limited knowledge of the technical and economic advantages of using corn co-products in fish feeds.”

TOC-Egypt Aqua ProgramTo assess this industry’s potential to utilize U.S. DDGS in their feed formulations, the trip included site visits to fish farms.

“During the site visits, we saw that average aqua production in Egypt was 2 to 4 tons per acre,” Hassanein said. “However there is the potential for these farms to increase output to 8 to 12 tons per acre with improved management. This means there is a great growth potential that could increase demand for coarse grains and co-products.”

The mission wrapped up with a seminar that was attended by 75 executives from the aquaculture sector. “During the seminar, we gave an overview of the advantages of using U.S. DDGS in aqua rations and discussed the success the Council has seen in Vietnam with our catfish feeding trials,” Hassanein said. “While Egyptian aquaculture is mainly focused on the tilapia species, the information from the catfish trial was useful to those attending our program also.”

The group also explored the possibility of launching a similar type of feeding trial in Egypt. “We were also successful in reaching a preliminary agreement with an international aquaculture research institute in Egypt,” Hassanein said. “They have agreed to conduct feed trials using higher inclusion rates of DDGS with support from Mirasco, which will provide the needed DDGS, free of charge, to carry out the trials.”

biofuels, Distillers Grains, International, USGC

#USDA to Award $21M for Bioeconomy R&D

Joanna Schroeder

USDAThe U.S. Department of Agriculture (USDA) has made $21 million available to support the development of regional systems in sustainable bioenergy and biobased products. The funds will also be awarded to train the next generation of bio-scientists. The monies are offered through the AFRI Sustainable Bioenergy and Bioproducts challenge area designed to provide renewable energy, chemical, and product options, among other goals.

“This announcement marks the Obama Administration’s latest investment in the biobased economy, which pumps $369 billion into the U.S. economy each year and supports 4 million jobs in rural and small towns across the United States,” said Agriculture Secretary Tom Vilsack. “Over the course of this Administration, America has more than doubled our renewable energy production, and today we import less than half our oil. We are saving money at the pump, bolstering national security by relying less on foreign oil, and combating climate change with investments in technologies that reduce greenhouse gas emissions and provide for cleaner air.”

In fiscal year 2016, the Sustainable Bioenergy and Bioproducts challenge area is soliciting applications that focus on the following priorities:

  • Regional Bioenergy Coordinated Agricultural Projects (CAPs), which support the production and delivery of regionally-appropriate sustainable biomass feedstocks for bioenergy and bioproducts. While the focus of CAPs will be on feedstocks, competitive proposals must present the feedstock development and production in the context of comprehensive regional sustainable bioenergy and bioproducts supply chain systems.
  • Investing in America’s scientific corps: Preparing a new generation of students, faculty, and a workforce for emerging opportunities in bioenergy, bioproducts, and the bioeconomy.

Application deadlines vary by program area. See the request for applications for more information.

advanced biofuels, biochemicals, bioenergy, biomass, biomaterials, bioproducts, USDA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Sealed, an energy software company based out of the NYU Tandon School of Engineering cleantech incubator called NYC ACRE, has announced the launch of Sealed Pay As You Save, the first program that invests in energy savings resulting from residential efficiency improvements. Sealed guarantees these savings to customers by leveraging its proprietary software and analytics. Sealed PAYS will enable New York homeowners to benefit from up to $7.5 million in energy-saving improvements. The initial credit facility is provided by the New York Green Bank, part of Governor Cuomo’s Reforming the Energy Vision (REV) initiative.
  • Kum & Go will be offering E15 at more than 100 stores across the country by the end of the year. The company will be offering consumers a choice of E15 at pumps across 10 states and at about 30 locations.
  • Natural gas and renewable energy can provide all of the new electric power that Texas will need in the foreseeable future, researchers with the Brattle Group find in a new report prepared for the Texas Clean Energy Coalition (TCEC). “Exploring Natural Gas and Renewables in ERCOT Part IV: The Future of Clean Energy in ERCOT,” looks at the Texas generation mix over the next 20 years and forecasts how market and regulatory factors affect how electricity will be generated in ERCOT, how much it will cost, and how much CO2 will be emitted.
  • Twenty-five students from Tracy Area High School toured Highwater Ethanol to get a better understanding of clean Minnesota-produced renewable energy. During the two-hour-long tour, the students toured the various processes of ethanol production at Highwater Ethanol, which delivered 59.42 million gallons of ethanol in 2015.
Bioenergy Bytes

Anti-Ethanol Bill Steps Consumers, Farmers Back

Joanna Schroeder

There is still buzz around a bill introduced last week by Representatives Bill Flores (R-Texas), Peter Welch (D-Verm.), Bob Goodlatte (R-Vir.) and Jim Costa (D-Cali.) that would cap ethanol blends in America’s transportation fuels at 9.7 percent by volume. This cap would be in direct opposition to the goal of the Renewable Fuel Standard (RFS) that aims for 20 percent of all fuels to be renewable fuels by 2020.

Growth Energy co-chair, Tom Buis noted that the bill is flawed in many ways, one being the ethanol industry is already producing, and fuel retailers are already blending and selling, more than 10 percent ethanol by volume.

Ethanol Blends Photo Joanna Schroeder

Photo Credit: Joanna Schroeder

“This bill is incredibly flawed because the ethanol industry is already producing over the bill’s 9.7 percent threshold and growing. Perhaps more importantly this bill would deal a blow to American consumers who have embraced ethanol as a less expensive, 21st century fuel that is higher performing and allows for consumer choice,” Buis stated. Today, E15 availability is growing and is now being sold in 23 states.

Paul Jeschke, a farmer from Mazon, Illinois, and chair of the Ethanol Committee of the National Corn Growers Association (NCGA), called the bill a step backward for farmers and consumers. “Americans want cleaner air, affordable choices at the gas pump, and a strong economy that fosters investment in new technology and improves our energy independence. Meanwhile, American corn farmers are struggling, with prices below the cost of production and the largest carryover stock in two decades.” Jeschke added, “The Renewable Fuel Standard was created to promote American renewable energy while creating a steady market for corn. This bill would undercut the RFS and negatively impact corn farmers, and with it, the entire farm economy.”

As members of Congress head home for Memorial Day recess, Jeschke is urging farmers and consumers to use the opportunity to reach out to their elected officials and call on them to block the bill and share with them the benefits of ethanol.

biofuels, Ethanol, Growth Energy, Legislation, NCGA, RFS

#Biodiesel Industry Calls 2018 RVO Shortsighted

Joanna Schroeder

The biodiesel industry is calling the required volumes of the advanced biofuels category under the Renewable Fuel Standard shortsighted in reaction to the EPA’s release of the 2018 RVO proposal. The amount of increase in biodiesel from 2017 to 2018 was a mere 100 million gallons. The Iowa Biodiesel Board is calling on the EPA to set volumes that more closely match the biodiesel industry’s potential.

IBB“We commend EPA for releasing their proposed biomass-based diesel volumes in a timely manner. But as the top biodiesel-producing state, those of us in Iowa know that the biodiesel industry can achieve much more significant growth in 2018 than what EPA currently calls for in this proposal,” stated IBB Executive Director Grant Kimberley. “Nationally, our industry already has the feedstock and the production capacity to reach 2.5 billion gallons in a sustainable manner, and we’re disappointed this proposal is quite far from that industry recommendation. The proposed number, 2.1 billion gallons, is still too low, especially since we are facing biodiesel imports, some of which have the benefit of foreign subsidies.

Kimberly noted that biodiesel offers a tremendous opportunity to reduce greenhouse gas emissions and assist the U.S. as well as other countries, in meeting climate goals. “In fact, under the RFS law, Advanced Biofuels must reduce lifecycle greenhouse gas emissions by at least 50 percent compared to petroleum fuels, and according to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent.”

REGThe country’s largest biodiesel producer, Renewable Energy Group (REG) put a positive spin on the proposal that calls for 2.1 billion gallons of biomass-based diesel for 2018. “We are pleased that EPA has again proposed continued growth of biomass-based diesel and overall advanced biofuel volumes. This proposal provides greater certainty in the marketplace, reflects the expanding usage and blend levels consumers want, and points towards continuing growth for the cleaner, lower carbon intensity fuel we produce,” stated REG President and CEO Daniel J. Oh.

“We are very appreciative of the advanced biofuel advocates within the Administration and on Capitol Hill for their consistent support.” Oh added, “We will continue to work alongside our industry partners to provide the EPA, OMB and other federal agencies additional market data that will support additional growth in the D4 (biomass-based diesel) and D5 (general advanced biofuel) categories, as we believe that there is a compelling basis for further increases over time.”

American Soybean Association (ASA) President Richard Wilkins took the opportunity to highlight the success of the biodiesel industry in not only meeting, but exceeding, RFS biodiesel targets, and calls on the EPA to reflect these achievements. He notes that the biodiesel industry provides a market outlet for surplus soybean oil as well as animal fats and other renewable ag feedstocks.Read More

advanced biofuels, Biodiesel, EPA, REG, RFS

Advanced #Biofuels Inch Upward in 2017 RVOs

Joanna Schroeder

The advanced biofuels categories were increased with the U.S. Environmental Protection Agency’s (EPA) proposed 2017 renewable volume obligations (RVOs) that were released yesterday. The RVOs are part of the Renewable Fuel Standard (RFS). While not on track as mandated by law in 2007, advanced fuels are gaining ground with an increase in volumes from 2016.

ABA logoSome in the industry see the increase as positive. “Today’s proposed RFS rule for 2017 is good news for the advanced biofuels industry with increases to the advanced, biomass-based diesel, and cellulosic pools. This shows great progress for the advanced biofuels sector,” said Michael McAdams, President, of the Advanced Biofuels Association. “We look forward to commenting on the proposed rule and are particularly encouraged by the growth of available renewable diesel and biodiesel to our country to achieve these targets.”

However not everyone producing or focused on the growth of second generation biofuels see the increasing numbers as enough of a step in the right direction including DuPont, who has an operational cellulosic ethanol biorefinery in Nevada, Iowa.

DuPont logo“DuPont is again disappointed with the EPA’s proposed rule on the 2017 Renewable Volume Obligations under the RFS. As raised in our comments on last year’s RFS rule for 2014 to 2016, the EPA has again injected infrastructure constraints into the calculation, rather than setting biofuels volumes based on the industry’s ability to supply fuel. This approach undermines fundamental principles of the RFS that have served as the foundation for the economic, energy security and environmental successes of the RFS.

Since 2013, the EPA has been inconsistent in issuing the annual RVOs, and when the agency delivered a rule, the methodology for setting volumes has created a high degree of policy uncertainty, almost eliminating biofuels investments, particularly for the advanced and cellulosic sectors in the United States. The renewable fuels industry is global in nature with substantial, long-term business potential. DuPont continues to vigorously pursue every opportunity to enable the growth of the biofuels industry here and around the world. We are committed to this industry and to bringing world-class technology and sustainable best practices to market to spur the growth of renewable industries worldwide.”

advanced biofuels, Cellulosic, EPA, Ethanol, RFS

More 2017 RVO Reacts from #Ethanol Industry

Joanna Schroeder

The U.S. Environmental Protection Agency (EPA) released its draft proposed renewable volume obligations (RVOs) for 2017 as part of the Renewable Fuel Standard (RFS) yesterday and the biofuels industry is reacting to numbers that remain under statute levels. For first generation biofuels, that includes corn-based ethanol, the numbers were increased from 2016 but still remain 200 million gallons below what is required by law.

AESI logoAmericans for Energy Security and Innovation (AESI) Chairman Jim Talent reacted to the proposed rules, “The Obama Administration’s proposed targets fall short of the goals for energy security that Congress outlined in the Renewable Fuel Standard. America’s domestic biofuels industry has already proven that it can surpass these targets, and our goal should be to maximize the renewable choices that consumers have at the pump. The EPA is moving in a positive direction, but we are leaving homegrown energy on the table, and that means more money and influence will flow to the foreign nations that seek to manipulate the global oil market.” (Click here to read Jim Talent’s full statement.)

Iowa Secretary of Agriculture Bill Northey, who has been a vocal opponent of the RFS stated, “While the RVO numbers released today allow for some growth in the renewable fuels levels included in our nation’s fuel supply, unfortunately they don’t meet the levels passed with bipartisan support in Congress and continue to use questionable justifications for not meeting those required levels. The EPA’s proposal starts another comment period, so it is important that Iowans take advantage of that opportunity and voice their support for the renewable fuels industry that is so important to our state.”

National Farmers Union logoPointing to the connection between reliable implementation of the RFS and achievement of the Administration’s climate goals, the National Farmers Union (NFU) stated, “Farmers and ranchers understand the impacts that climate change has on our planet, our environmental resources, and our ability to feed a growing world population. The investments made in renewable fuels and advanced biofuels have helped bridge a divide between our current environmental impact and the climate goals set forth by the Administration – goals that we cannot meet without the participation of our family farmers and ranchers. The oil companies have had plenty of time to build out the distribution infrastructure to deliver more biofuels to the consumer and commercial markets that seek this environmentally-friendly energy source. They have simply refused to do so, and EPA’s negligence in adhering to the statutory levels has significantly undermined the plan laid out by Congress in 2007.”

Novozymes_logoNovozymes said the proposal acknowledges crucial role of biofuels with higher blending volumes but still lets obligated parties off hook. “While President Obama is pushing to reduce greenhouse gas emissions on one hand, today’s proposal still allows the oil industry to pollute with carbon-intense fuels on the other. The only way the world will switch to renewable energy is if bold leaders make it happen,” said Adam Monroe, President, Americas. “The private sector is taking bold action: Investing millions of dollars in cutting emissions with our technology, turning biomass into biofuel and building facilities, like our $200 million enzyme manufacturing plant in Blair, Nebraska. We urge the Administration to be bold too, and get back to the original intent of the RFS. Other countries are already capitalizing on our lack of clarity.”

VoteVets_logoRetired Major General Paul D. Eaton, senior advisor to VoteVets focused on the energy security benefits of biofuels. Read More

biofuels, EPA, Ethanol, RFS

Clariant-Scania Ethanol Trucks Project Successful

Joanna Schroeder

Last year, Clariant and Scania partnered to test ethanol fueled heavy-duty trucks. Clariant acquired three Scania P270 model 4×2 trucks, or Ecotrucks, that run on ethanol, and are the first of its kind to be sold by Scania in Latin America. The Ecotrucks transport ISO tanks with a 25,000-liter (6,604 gallon) capacity for chemical products from Clariant’s facility located in Suzano in the state of São Paulo, to a fleet of highway trucks, which then deliver the products to Clariant’s customers. With a year of operating on the books, Clariant is reporting a reduction of CO2 emissions by nearly 90 percent as compared to the diesel engines that were previously used.

CLAPR1096b“Clariant is making history in Latin America with this innovative project that demonstrates the value of using ethanol trucks for daily operations. Clariant’s example is drawing interest from other companies that have already contacted Scania about this solution,” said Celso Mendonça, Business Development Manager for Scania Brazil. “Scania values sustainability, so it believes in having an energy matrix that is mixed, uses different sources and allows for fuel savings and a reduction in CO2 emissions. Ethanol-fueled trucks are a solution for companies committed to reducing the environmental impacts of their transportation operations. It is a 100% viable option.”

The ethanol fuel used by the Scania trucks contains the Master Batch ED 95 additive produced by Clariant Brasil who says the additive allows engines designed to run on diesel to run on hydrous ethanol. It adjusts the characteristics of the fuel to the engines’ requirements in order to make the vehicle run well.

As the second phase of this project, Clariant started using second-generation ethanol as part of the fuel to operate the Ecotrucks. This ethanol is manufactured from sugar cane bagasse using sunliquid technology. Since July 2012, the company has been operating a pre-commercial plant in Straubing, Germany, producing up to 1,000 tons of cellulosic ethanol from approximately 4,500 tons of raw material. At that unit, over 40 containers of sugar cane bagasse from Brazil were processed to manufacture some of the fuel that is being used in the Ecotrucks at the Suzano plant.

“Today in Brazil, we are demonstrating the commercial use of the cellulosic ethanol fuel, using one of the least CO2-producing vehicles available: the Scania trucks,” said Martin Mitchell, business development manager for the Americas. “We conducted several tests to validate the technical and economic viability of the sunliquid technology, which is already commercially available in Brazil. We verified, once again, that producing the enzymes at the plant itself, in a manner integrated with the overall process and specific to sugar cane bagasse, represents the best competitive cost.”

advanced biofuels, Alternative Vehicles, biomass, Brazil, Ethanol

RFA to Hold FSMA Training Classes

Joanna Schroeder

rfalogo1The Renewable Fuels Association (RFA) is hosting four training courses to help biorefineries meet new requirements of the Food Safety Modernization Act (FSMA). The classes, which are FDA-approved, are geared toward ethanol plant employees overseeing the food safety plan of the ethanol plant. The course will assist ethanol plants with FSMA compliance, provide accurate and fact-based information and the means to compliance.

RFA Director of Regulatory Affairs Kelly Davis, who holds an instructors certification, will conduct the training classes. “With the rigorous FDA training I received, I understand the letter and spirit of the law, and the nuances ethanol plants will need to know in order to comply as cost effectively as possible,” said Davis. “These training classes will be essential to help navigate the FSMA requirements.”

Registration is now open for the four classes:

  • Training Session #1: July 27–29, Omaha, Neb.
  • Training Session #2: Aug. 17–19, Des Moines, Iowa
  • Training Session #3: Aug. 24–26, Minneapolis, Minn.
  • Training Session #4: Sept. 14–16, Indianapolis, Ind.

Each session will include course materials, refreshments and lunch. Attendees will receive an approved PCQI certificate upon successful completion of the course. Each session is limited to 40 attendees, reservations are required and slots are assigned on a first-come, first-served basis. The course is offered to RFA members at no charge and the registration fee for non-members is $1,800. To reserve your spot at one of the above sessions, please contact Ann Lewis or Kelly Davis.

In September 2015, FDA finalized regulations for producing safe animal food, in the case of ethanol plants safe dried distillers grains (DDGs). Covered facilities must establish and implement a food safety system that includes an analysis of hazards and risk-based preventative controls. FSMA requires a Preventative Controls Qualified Individual (PCQI) be in charge of the risk-based food preventative controls plan and receive certification through an FDA-sanctioned training course and those taught by FDA-certified lead instructors. RFA has been involved with the standardized curriculum development of the FDA recognized Food Safety Preventative Controls Alliance for the Animal Food.

Distillers Grains, Education, Ethanol, Ethanol News, RFA

.@EthanolRFA Reacts to @EPA 2017 #RFS Proposal

Cindy Zimmerman

ethanol-report-adThe Environmental Protection Agency (EPA) released its draft Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2017 on Wednesday proposing a total renewable fuel volume of 18.8 billion gallons, including four billion in advanced biofuels and 312 million gallons is cellulosic biofuel.

In this interview, Renewable Fuels Association (RFA) president and CEO Bob Dinneen says the proposal falls 200 million gallons short of the statute and that EPA is relying on an illegal interpretation of its waiver authority under the RFS. Dinneen does give EPA credit for releasing the proposal in a timely fashion and notes that the agency will be providing an opportunity for the industry to provide public comment during a hearing in Kansas City on June 9.

Listen here: Ethanol Report on EPA 2017 RFS Proposal

Audio, EPA, Ethanol, Ethanol News, Ethanol Report, RFA, RFS