IRFA Testifies at Senate Ag Subcommittee Hearing

Joanna Schroeder

irfa-shaw-hearingIowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw recently testified before the Senate Agriculture Subcommittee on Rural Development and Energy. The hearing focused on USDA Rural Development Programs and their economic impact across the country. Shaw said during his testimony that properly supporting renewable fuels programs are vital to the well-being of rural America.

“I think it can be fairly stated that no other effort to improve rural economies made the impact that renewable fuels did,” Shaw testified. “Then, in late 2013, the Obama Administration proposed Renewable Fuel Standard levels far below statutory levels. The economic fallout was predictable and painful. The last two years have seen a dramatic downturn in the health of rural America. Corn prices plummeted, land values fell, farm income plunged, and agribusinesses laid off workers by the thousands.”

Shaw highlighted several Energy Title programs under the Farm Bill, including the Bioenergy Program for Advanced Biofuels, the Renewable Energy for America Program and others, that have provided strong returns on investment. “However, the effectiveness of these programs is reduced by a lack of consistent and timely funding.”

Shaw also asked the Senate leaders to support other programs outside the Farm Bill that can boost rural economies. “The Renewable Fuel Standard, the USDA’s Biofuels Infrastructure Partnership, and equalizing vapor pressure treatment for E10 and E15 are all additional programs you can support that are vital to the well-being of rural America.”

biofuels, Iowa RFA, RFS, USDA

Air Canada Joins Biojet Initiative

Joanna Schroeder

Air Canada is joining in Canada’s Biojet Supply Chain Initiative (CBSCI), a three year project with multiple partners to assimilate 400,000 litres of sustainable aviation into the shared fuel system. This is not the first entree of Air Canada in terms of biojet fuel. The airline has flown several biojet flights but the aviation fuel was segregated and loaded separately into an aircraft via tanker truck. However the CBSCI initiative will build a framework that will allow the biojet fuel to be blended into aviation fuel used at the airport.

AirCanada plane“We are pleased to support this important initiative by facilitating the logistics involved in the introduction of biojet to an airport’s shared fuel system,” said Teresa Ehman, Director – Environmental Affairs at Air Canada. “In doing our part towards responsible growth and environmental sustainability, Air Canada has invested billions of dollars in fleet renewal to reduce our fuel consumption and meet our current emission reduction goals.”

Ehman added, “Biojet holds the potential to be an important part of our strategy for achieving our longer-term industry goals of carbon neutral growth from 2020 and a 50 per cent reduction in emissions by 2050, relative to 2005 levels. The CBSCI project will contribute significantly to advancing a biojet supply chain in this country.”

The CBSCI project, the first of its kind in Canada, is aimed at creating a sustainable Canadian supply chain of biojet using renewable feedstocks. Canada has abundant agricultural and forestry biomass resources, with globally recognized sustainable production and harvesting practices. The biojet fuel used in this project will be sourced from commercially available, certifiably sustainable Canadian oleochemical feedstocks using the Hydroprocessed Esters and a Fatty Acids (HEFA) conversion process. The biojet fuel will be blended with petroleum jet fuel to meet all technical quality specifications before being introduced into a shared fuel tank at a Canadian airport, yet to be determined. The CBSCI project will also identify and help solve supply logistic barriers that arise when aviation biofuels are introduced at major Canadian airports.

aviation biofuels, biojet fuel, biomass

EIA Hosting Ethanol & Biodiesel Rail Webinar

Joanna Schroeder

eia logoIn conjunction with the release of the first monthly report that tracks ethanol and biodiesel movement via rail, the U.S. Energy Information Administration (EIA) is hosting a webinar, “Learn about ethanol and biodiesel movements by rail added to EIA’s Petroleum Supply Monthly report,” on April 7, 2016 from 11:00 am to 12:00 pm EDT.

The webinar will review data for January 2016 included in the March Petroleum Supply Monthly as well as will discuss the historical data on monthly rail movements of ethanol and biodiesel back to January 2014.

The webinar is presented by Mindi Farber-DeAnda, Supervisor of EIA’s Biofuels & Emerging Technologies Team; and Arup Mallik, Member of EIA’s Biofuels & Emerging Technologies Team. Click here to register.

Biodiesel, biofuels, Education, Ethanol

Push Poll Push Back

Joanna Schroeder

The American Petroleum Institute has unveiled yet another anti-biofuel poll. The latest released during a media call today was conducted by Harris Poll. According to the poll, 77 percent of registered voters are concerned that breaching the so-called  ethanol blend wall would drive up the cost of gasoline for consumers and reduce the nation’s fuel supply (85 percent Republicans, 75 percent of Democrats and 71 percent of independents).

“Across the political spectrum, voters are concerned about the significant damage the RFS mandate and higher ethanol blends could cause to automobiles, motorcycles and almost every type of gasoline powered engine,” said API Downstream Group Director Frank Macchiarola during the media call. “Regardless of their party affiliation, voters are concerned with mandates that try to force too much ethanol into our fuel supply.

Listen to the API media call here: API Media Call on Anti-Ethanol Push Poll

In response to the news, Renewable Fuels Association President and CEO Bob Dinneen said, “It’s no surprise that API, an organization which has made its top priority to get rid of the RFS, is trotting out a phony faux poll to support its antediluvian narrative about biofuels. This push poll, which uses opinionated statements to elicit a negative responIowa-RFA-logo-new1se to biofuels, is not reflective of reality. For example, the renewable fuel standard (RFS) has not raised food prices 25 percent, as API claims, but instead food prices have risen by an average of just 2.7 percent per year since 2005, the year RFS was adopted. In fact, only 17 cents of every dollar spent on food pays for the raw farm ingredients in the food item. The other 83 cents pay for processing, transportation, labor, packaging, advertising and other costs.

“If you want to know what the American public really thinks, with direct questions and no spin, look no further than a Morning Consult poll conducted April 1–3, on behalf of RFA, in which nearly six in 10 registered voters (57 percent) support the RFS. Conversely, only 19 percent oppose the RFS. Additionally, 64 percent of those polled have a favorable opinion of biofuels and two-thirds (66 percent) have a favorable opinion of corn-based ethanol. This data is consistent with the findings from the approximately 18,000 registered voters we have polled over the past year.

“With these growing levels of support for biofuels, it’s no wonder that API President Jack Gerard told Politico’s Morning Energy last month that the organization was pivoting its strategy toward reforming, rather than repealing, the RFS. API can’t continue to support repeal because Americans want more fuel choice, not less,” Dinneen concluded.

The Morning Consult poll included results from 2,004 registered voters, with a margin of error of +/-2 percent. To view a copy of the poll results, click here.

Audio, biofuels, Ethanol, Ethanol News, RFA, RFS

U.S. Industry Starting Brazilian Corn #Ethanol Plant

Cindy Zimmerman

Brazil-ethanol-markerIowa-based Summit Agricultural Group recently broke ground on the first large-scale corn ethanol production facility in Brazil.

The $115 million plant is an international collaboration between Iowa-based Summit Agricultural group and Brazilian agribusiness Fiagril which will utilize process technologies from ICM, Inc. of Colwich, Kansas. The facility is being built near Lucas do Rio Verde in Mato Grosso, a preeminent agricultural state in west central Brazil and the country’s largest producer of corn and soybeans.

Summit CEO Bruce Rastetter speaks at groundbreaking

Summit CEO Bruce Rastetter speaks at groundbreaking

“This is a significant day for renewable fuels, Brazil and Summit Agricultural Group,” said Summit CEO Bruce Rastetter at the March 29 groundbreaking. “Through Summit’s expertise in sustainable agriculture, investment and renewable energy, we will further realize the enormous corn growing potential of a region that is poised to become a global leader in corn ethanol production.”

Rastetter says the plant will provide value to Brazil by helping to offset the country’s increasing demand for domestic ethanol, which can’t be met by the existing sugarcane ethanol production. In addition, the new corn ethanol production facility will introduce the use of distillers grains for livestock feed to the region.

The plant is expected to be complete by mid-2017.

Brazil, Ethanol, Ethanol News

Latest #Ethanol Trade Statistics

Cindy Zimmerman

The latest ethanol and distillers dried grains with solubles (DDGS) export numbers show Brazil is importing more U.S. ethanol as exports of DDGS continue to decline.

rfa-annAccording to Renewable Fuels Association (RFA) analyst Ann Lewis, exports of U.S. ethanol totaled 67.0 million gallons in February, down 23% from January’s 14-month high. “Brazil overtook recent leaders Canada and China as the top destination for U.S. product in February,” Lewis reports. Brazil imported over 22 million gallons of U.S. ethanol in February while exports to Canada were 14.5 mg, up 6% over January volumes and exports to China totaled 8.9 mg, down from 29.4 mg in January. On the import side, only marginal volumes of foreign-produced fuel ethanol have entered the United States so far this year.

Exports of DDGS continued to fall in February, to 785,383 metric tons with China remaining the top destination. Exports of U.S. DDGS to Mexico were down 26%. Other top customers were Vietnam, Thailand, Canada, and South Korea.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

NCGA: Small Engine Industry Must Change

Joanna Schroeder

Small engines and the use of ethanol has been in the news lately with spring approaching. This week, National Corn Growers Association CEO Chris Novak published the following editorial.

The Small Engine Industry Needs to Change with the Times
By National Corn Growers Association CEO Chris Novak

NCGA-Logo-3The Outdoor Power Equipment Institute (OPEI), which represents the small engine industry, just released their annual survey results concerning consumer knowledge of small engine fuel options. Based upon the results of the survey, corn farmers and small engine manufacturers can agree that consumers need and deserve more information about today’s fuel options. We know from our own consumer research that consumers are hungry for information about the positive effects of ethanol blended fuels.

Further, we agree with the OPEI on two other points: 1. The OPEI acknowledges that E10 is safe for use in small engines like motorcycles, lawn mowers, trimmers, boats and snowmobiles; and 2. The OPEI notes that federal law prohibits the use of higher ethanol fuel blends in outdoor power equipment. Beyond these points of agreement, however, lays a significantly different view of the future.

Our farmers believe that consumers having a choice of fuels is a good thing. Whether you choose renewable ethanol because you want cleaner air or because you like purchasing an American grown fuel or because higher blends of ethanol are frequently priced lower than gasoline-the bottom line is that you should have the choice if you want to kick your oil addiction. The OPEI’s press release suggests that you, as a consumer, can’t handle this choice-that you lack the ability to know the differences between regular gasoline and higher ethanol blends like E-15 or E-85. We trust consumers to make the right choice of fuel – whether it is for their cars or small engine.

Today, our farmers are working with the auto industry to examine how higher blends of ethanol, ranging from E-15 to E-25, can boost gasoline octane. Higher gasoline octane can improve engine performance and help the auto industry achieve higher Corporate Average Fuel Economy mileage targets. Likewise, it is time for the nation’s small engine manufacturers to stop fighting renewable fuels and, instead, begin working to ensure tomorrow’s small engines can run on tomorrow’s renewable fuels.

Rather than fighting choice and change, our nation’s small engine manufacturers should work to develop engines that can run safely on higher blends of renewable fuels. Perhaps then, instead of bemoaning the lack of consumer knowledge and issuing dire warnings-the OPEI can offer consumers something real: the opportunity to make a clean and renewable choice.

biofuels, Ethanol, NCGA, Opinion

Groups Ask for Advanced Biofuel Tax Extension

Joanna Schroeder

As the advanced biofuel tax credits get closer to expiring, six biofuel trade associations have called on federal legislators to pass a multi-year extension of the credits. In 2015, through the Protecting Americans from Tax Hikes Act of 2015, several programs were extended including: the Second Generation Biofuel Producer Tax Credit; the Special Depreciation Allowance for Second Generation Biofuel Plant Property; the Biodiesel and Renewable Diesel Fuels Credit; the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit; and the Alternative Fuel Vehicle Refueling Property. While these were extended through 2019, the advanced biofuels tax credit is set to expire at the end of this year.

The letter sent today to Senate and House leaders, the Senate Committee on Finance leaders and the House Ways and Means Committee leaders and was signed by The Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization (BIO), Growth Energy, National Biodiesel Board, and Renewable Fuels Association.

Screen Shot 2016-04-05 at 12.29.51 PMThe letter stated, “This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future. As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, as Congress works on developing energy tax extenders legislation, we urge you to ensure that advanced biofuels are part of the package. Extending some 2016 expiring energy tax provisions and not others creates a piecemeal approach and investment uncertainty across the energy sector and distorts the playing field for biofuel producers.”

Additional comments were made by each of the six organizations that signed the letter. These comments can be found below.

Bob Dinneen, president and CEO of the Renewable Fuels Association said, “Short-term tax incentives are akin to new drivers in a stick shift vehicle. The cars haltingly lurch forward for a time, but suddenly stall. The advanced biofuel industry needs certainty if it is to remain commercially viable, as it continues to bring new facilities and technologies online. Longer term incentives would go a long way to making sure the industry continues its growth, and don’t leave consumers stalled along the way.”Read More

advanced biofuels, BIO, Growth Energy, NBB, RFA

EIA Begins Tracking Biofuels by Rail

Joanna Schroeder

Ethanol tank. Photo credit: Joanna Schroeder

Ethanol tank. Photo credit: Joanna Schroeder

This week marked new data being compiled by the U.S. Energy Information Administration (EIA) including data on ethanol and biodiesel being transported by railroads. With this addition, EIA now reports on monthly rail movements for crude oil, ethanol and biodiesel.

According to EIA, adding movements of ethanol and biodiesel by rail to existing movements between Petroleum Administration for Defense Districts (PADDs) by pipelines, tankers, and barges provides more complete data on inter-PADD movements of biofuels. In addition, incorporating ethanol and biodiesel movements into regional volumetric balances also improves supply estimates for finished motor gasoline and distillate fuel oil.

The first reportable data was the March report that included both January data and also included monthly rail movements of ethanol and biodiesel back to January 2014.

Biodiesel, Ethanol

REG Begins Ames Lab Expansion

Joanna Schroeder

Renewable Energy Group has begun its expansion of its laboratory at its Ames, Iowa headquarters. The upgraded lab will enable the company to further enhance renewable chemical related biotechnology research, development and commercialization including the installation of fermentation equipment and significant analytical capabilities. Once complete, full-time positions will be added to focus on commercialization and integration of products to be developed by REG in South San Francisco into production and delivery platforms.

REG“This expansion is simply one of many examples of REG’s commitment to innovation and economic development in Iowa and in particular Ames which is a cornerstone of Iowa’s Cultivation Corridor,” said REG President and CEO Daniel Oh. “These upgrades will allow us to increase our midwestern focus on product development for renewable chemicals.”

Oh said renewable chemicals legislation is expected to be signed soon by Governor Terry Branstad, a bill that will provide tax credits for the renewable chemical industry. Oh believes these credits will provide extra momentum for REG’s investments. “The state’s efforts to promote and grow renewable chemicals are a natural extension of the state’s support of agriculture and renewable fuels. This bill shows commitment and purpose and demonstrates that the investment is desired here in Iowa, and we are thankful for the support of our elected officials in getting it done. ”

advanced biofuels, biochemicals, biomaterials, bioproducts, REG