Business SAF Coalition Comments to USDA

Cindy Zimmerman

The Business Aviation Coalition for Sustainable Aviation Fuel is urging the Biden administration to follow the approach the government uses for existing biofuel programs when it develops rules to quantify and verify greenhouse gas emissions from various feedstocks for producing sustainable aviation fuel (SAF) to determine the level of Inflation Reduction Act tax incentives available to SAF producers.

“The BizAv SAF Coalition encourages the Department to enable as much adaptability and flexibility in its framework as is practicable and encourages the USDA to embrace a performance-based approach in its analysis, focusing on outcomes rather than prescriptive and exclusionary lists of acceptable feedstocks,” the coalition said in its letter.

Without the right approach and flexibility with the greenhouse gas rules, the U.S. will not be able to meet the SAF Grand Challenge goals, the coalition said. “It is likely that we will only achieve those goals through the existing scale and capabilities of U.S. agriculture through access to sustainable crop-based feedstocks,” the coalition said.

Read the coalition’s letter to USDA here.

aviation biofuels, Ethanol, Ethanol News, SAF

Ethanol and DDGS Exports Down But Still Strong in June

Cindy Zimmerman

The latest export figures for the month of June were lower than the previous month but still strong for the year, according to the latest report from the Renewable Fuels Association.

U.S. ethanol exports hit a record high for the month of June, reaching 145.9 million gallons (mg), though this marked a 6% decline from May. Shippers targeted just thirteen markets, with the largest share heading to Canada for the 39th consecutive month. Our neighbor imported 44.7 mg (93% denatured fuel), which is 25% less than May and the lowest volume for the year. Exports to the United Kingdom accelerated, increasing by 144% to 25.8 mg (64% denatured fuel). Other significant markets included the European Union (16.7 mg, +17%), India (14.7 mg, up from nearly zero), Colombia (12.2 mg, +52%), the Philippines (9.3 mg, -42%), and Mexico (8.2 mg, +55%). U.S. ethanol exports for the first half of 2024 total 962.8 mg, a remarkable 41% increase compared to the same period last year.

In addition, exports of dried distillers grains (DDGS) dropped 7% in June to 945,592 metric tons (mt). Exports to Mexico, our largest DDGS market for the sixth straight month, were up one percent from May. Exports rose 2% to South Korea, 19% to Indonesia, and over 30% to China, the largest volume since January 2022. However gains were offset by reduced shipments to Vietnam, the European Union, Canada, Colombia, and Japan.

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

Fluid Quip Commissions Largest MSC™ Protein System

Cindy Zimmerman

Fluid Quip Technologies (FQT) has completed the world’s largest MSC™ System to date at Tharaldson Ethanol in Casselton, North Dakota. This is the 12th system installed which is designed to expand the production of corn fermented protein, a high-quality protein ingredient in animal feed.

“Our MSC™ Technology is critical to not only creating a high-quality protein ingredient for pet food, but also allowing ethanol plants to achieve greater corn oil yields” said Neal Jakel, President of Fluid Quip Technologies, “FQT is excited to commission our largest MSC™ System and continue to collaborate with our customers to maximize the value of every kernel of corn. The project is a testament to the market and value the team has achieved as nutrition customers look for more corn fermented protein to utilize in their rations.”

Fluid Quip Technologies provided the MSC™ Technology as well as the engineering, design, procurement, construction management and startup services for the project. The completion of this MSC™ System brings overall production capacity of FQT MSC™ protein products to over 750,000 tons per year. The thirteenth FQT MSC™ system is currently under construction at the Ensus UK Limited’s facility in the UK.

corn, Distillers Grains, Ethanol, Ethanol News, Facilities, livestock feed

Farmers Touting Tech to Lower Carbon Score

Cindy Zimmerman

L-R: Iowa farmers Scott Henry, Rachel Fishback, and Brad McDonald

Farmers discussed the potential for technology to help lower their carbon intensity (CI) scores at the recent Tech Hub LIVE conference in Des Moines.

Brad McDonald, an Iowa farmer and Chief Operating Officer of Continuum Ag, talked about how incentives for adopting regenerative agriculture practices such as cover crops and no till to lower CI scores could generate a new revenue stream for farmers who sell grain to ethanol plants.

“So us as farmers can help the ethanol industry lower their CI score by producing a low CI grain. How do we do it? By using cover crops, no-till, and manure instead of synthetics. If you do those three things, that’s the trifecta to lower your score,” McDonald said. “And now I’m providing a brand new value to the ethanol industry that I should be compensated for. So at the end of the day it’s all tied to what is your actual score of the practices that you’re implementing on your farm.”

Scott Henry who farms in Nevada, Iowa, shared that he’s interested in technology that helps him simplify. “Whether it be carbon intensity scores or certain practices and products that help us reduce reliance upon synthetics that are out there….where we’re trying to really focus our operation is if we can simplify things on the farm and so that would that’s first and foremost.”

Other breakout sessions and roundtable discussions at the conference focused on ways ag tech companies can help farmers adopt these practices that could start generating a premium for their crop starting in 2025.

Carbon, Ethanol, Ethanol News, Farming, technology

Minnesota Awards $3 Million for E15 Infrastructure

Cindy Zimmerman

The Minnesota Department of Agriculture recently awarded over $3 million in infrastructure grant funding to 16 retail service stations in the state to increase access to Unleaded 88.

“With the EPA’s recent decision to allow year-round E15 sales for 2024 and beyond, the MDA is pleased to partner with these service stations to expand access to this lower-cost, cleaner fuel alternative at the pump for Minnesotans while supporting our state’s agricultural community,” said Agriculture Commissioner Thom Petersen.

Grant funds can be used to cover costs associated with the replacement or upgrading of current station equipment so it can be certified as compatible with E25 or higher motor fuel blends. To be eligible, grantees must be a retail petroleum dispenser in Minnesota with no more than 10 sites.

According to the Minnesota Bio-Fuels Association, the state leads the nation in providing consumer access to Unleaded 88, with nearly 500 stations across the state offering the 15% ethanol blend of fuel.

“The Minnesota Bio-Fuels Association is grateful for the robust investment in biofuel infrastructure provided by the Minnesota Department of Agriculture. These grant funds will help more retailers finance upgrades to their equipment so that they can offer Unleaded 88, which we know provides cost savings for consumers, improves air quality, and contributes to stronger rural economy,” said Brian Werner, executive director of the Minnesota Bio-Fuels Association (MN Bio-Fuels).

The 16 stations that were awarded the grant funding had participated in a competitive application review process which began in August 2023 through the Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant program.Funding for this program was made available by AGRI and the Minnesota Corn Growers Association.

E15, Ethanol, Ethanol News

Verbio Starts Ethanol Production at Iowa Plant

Cindy Zimmerman

image courtesy of Verbio

Verbio officially began commercial production this week of corn-based ethanol at its biorefinery facility in Nevada, Iowa. The plant is a subsidiary of Germany-based Verbio SE and is the first industrial-scale biorefinery in North America to couple renewable natural gas and ethanol production.

Verbio has installed a total capacity to produce 60 million gallons of corn-based ethanol per year and 2.3 million MMbtu of renewable natural gas (RNG).

“Our biorefinery approach not only continues to support opportunities for local growers, but as importantly, drives the transition towards sustainable green energy by offering advanced renewable products,” says Claus Sauter. The successful launch of ethanol production in Nevada accelerates the company`s growth strategy. It further builds economic development in the region, and leverages the use of agricultural residues as the foundation of Verbio`s business. Committed to decarbonizing industry, Verbio looks forward to further expanding its business within North America as well as internationally in the coming years.

corn, Ethanol, Ethanol News, RNG

RFA Offers FSMA Training for Ethanol Producers

Cindy Zimmerman

The Renewable Fuels Association is offering an important training program this month in Des Moines to help ethanol producers who also market the co-product distillers dried grains with solubles (DDGS) comply with animal food regulations.

The Food Safety Modernization Act (FSMA) training program on Preventive Controls for Animal Food compliance is tailored specifically for the ethanol industry. This critically important 20-hour course will be held August 27-29 in Des Moines, Iowa.

“RFA has been at the forefront of preparing the ethanol industry to comply with FDA’s FSMA rules, having successfully trained over 200 employees from 74 companies across 22 U.S. states and Canada from 2016-2018,” said RFA EH&S Director Justin Schultz, the lead instructor for the program. “We aim to continue that legacy and encourage plants to deepen their benches by educating new and seasoned employees alike.”

RFA based the course on standardized curriculum developed by the Food Safety Preventive Controls Alliance in collaboration with the FDA. Participants who successfully complete the training program will receive FSPCA Certificates of Completion and will be recognized by FDA as meeting the requirements for a Preventive Controls Qualified Individual. This is critically important, as ethanol plants subject to the PCAF rule are required to have a PCQI develop and implement the facility’s food safety plan.

The 20 hour course will begin Tuesday, August 27 at 1:00 pm and go through Thursday, August 29 at 5:00 pm
and will be held at the Iowa Corn Growers Association office in Johnston. The cost is free for RFA Members; $1,000 for Non-Members.

Click here for registration information.

Distillers Grains, Ethanol, Ethanol News, livestock, livestock feed, Renewable Fuels Association, RFA, safety

NASDA CEO Ted McKinney Sees Potential in SAF

Cindy Zimmerman

Former USDA Under Secretary and currently CEO of the National Association of State Departments of Agriculture Ted McKinney is optimistic about the future of sustainable aviation fuel as a market for U.S. biofuels, provided they have the opportunity under the upcoming 45Z tax credit.

“Our ethanol and our soy diesel and renewable diesel and all the folks that are doing some of these things know what the rules of the road are,” McKinney said, referring to efforts to cut carbon emissions. “I remain optimistic because the excitement of doing right by the environment and lifting up farmers and we’ve all heard Mr. Vilsack correctly say, my goodness, we’ve got to lift the smaller farmer up. That’s our future, at least part of it. So I remain hopeful that wisdom will prevail.”

But he admits that politics will likely play a role. “The oil and gas lobby is very alive, very well and very strong and everybody is getting in the ear of Secretary Yellen’s Treasury,” said McKinney.

One of the main messages McKinney had for attendees of Tech Hub LIVE in Des Moines this week was that he believes we can address climate change globally with climate smart agriculture and still increase productivity. “Production ag, including forestry, is actually a solution to climate change challenges,” said McKinney.

“I have been witness on our own farm and in my industry days to the advancement of innovation across the board,” he said during an interview after his address. “And based on what I have been hearing and then what I saw at this conference in the types of companies here and what they’re doing, it’s mind blowing. So I’m juiced because I see it has not stopped. In fact, I’d say innovation is accelerating.”

In his remarks and interview, McKinney also comments on the lack of a farm bill, technology, and trade issues.

Ted McKinney, National Association of State Departments of Agriculture (NASDA)
2024 THL Ted McKinney, NASDA, remarks 51:49
2024 THL Ted McKinney, NASDA, interview 13:19

2024 Tech Hub LIVE Photo Album

Audio, aviation biofuels, Biodiesel, Ethanol, SAF, technology

RFA Urges California to Use FFVs to Meet Emissions Goals

Cindy Zimmerman

The Renewable Fuels Association is urging the California Air Resources Board (CARB) to require all new vehicles with internal combustion engines sold within the state be flex-fuel capable in an effort to achieve California’s carbon emissions goals.

RFA submitted comments to CARB in response to a late June workshop on potential amendments to the state’s Advanced Clean Cars II regulations.

“With the substantial portion of legacy vehicles that will still be on the road after 2035 when new ZEV [zero-emission vehicle] requirements take full effect, and with the twenty percent allowance for PHEVs [plug-in hybrid electric vehicles] under those rules, it is critical to maximize greenhouse gas reductions in both the legacy fleet and new PHEVs sold after 2035,” wrote RFA Chief Economist Scott Richman.

Citing new independent research, Richman said that expanding and sustaining the benefits of E85 utilization in California through a flex fuel requirement represents a unique opportunity for maximizing greenhouse gas benefits while lowering costs to the consumer under the state’s Advanced Clean Cars program.

Read more from RFA.

E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Court Decision Impacts RFS Small Refinery Exemptions

Cindy Zimmerman

Ethanol industry leaders are disappointed and surprised by a U.S. Court of Appeals D.C. Circuit order on Friday vacating most of the EPA’s 2022 denials of petitions for small refinery exemptions from Renewable Fuel Standard obligations, and remanding those petitions to EPA for further proceedings.

While the court’s opinion remains under seal and is unavailable for public review the coalition of ethanol organizations that intervened on EPA’s behalf in the litigation remains committed to protecting and defending the proper implementation of the RFS. The Renewable Fuels Association, American Coalition for Ethanol and Growth Energy issued the following statement.

“We are extremely disappointed in today’s decision to vacate and remand EPA’s denial of dozens of small refinery exemption petitions. EPA’s decision in 2022 to deny the petitions was well-reasoned, based on sound economic analysis, and consistent with both the Clean Air Act and the objectives of the Renewable Fuel Standard. We will evaluate our next steps, which may include seeking further review of today’s decision.”

“We have always felt that EPA’s analysis of these petitions in recent years has been sound and well-reasoned and backed up by real world experience,” said Renewable Fuels Association President and CEO Geoff Cooper. “There’s no evidence there’s been any sort of harm to any of these small refineries in any part of the country as a result of the Renewable Fuels Standard and their compliance obligations…and that’s because they pass along the cost of the RINS.”

Listen here:
RFA CEO Cooper comments on SRE ruling 2:18

ACE, Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS