RFA, Growth Energy Join USGC

Joanna Schroeder

US Grains Council logoThe U.S. Grains Council’s (USGC) membership is expanding. This month the Renewable Fuels Association (RFA) and Growth Energy became official members. Southwest Iowa Renewable Energy (SIRE) and Al-Corn Clean Fuel also joined this month. USGC says their newest members, especially the ethanol trade organizations, will benefit them in multiple ways as they work together to increase global ethanol exports. Both groups will also have seats on USGC’s ethanol Advisory Team.

rfalogo1“We are proud to have RFA’s and Growth’s full support promoting ethanol overseas,” said USGC Chief Economist Mike Dwyer. “While they have sat on an advisory committee before, now they will really have the chance to engage as members. These organizations specialize in ethanol and offer input and context that will take our A-Team activities and programs to a new level.”

The 2014/2015 marketing year saw the second largest quantity of U.S ethanol shipped overseas. The organizations are using this as foundation for promoting U.S. ethanol as a clean-burning source of fuel to buyers and end-users around the globe. Lase year, this work was done through ongoing assessments of potential markets; bringing three buyers teams to visit the United States; bringing two groups of U.S. ethanol industry representatives overseas; and a series of workshops focusing on the environmental and economic benefits of ethanol use in China.

This year, this Council’s work will focus on the Asia-Pacific region, particularly Japan, Mexico, India and China as priority markets, with additional opportunities in Peru, the Philippines and other countries that are increasingly receptive to the benefits of blending ethanol into their fuel supplies.

growth-energy-logo1“With RFA’s and Growth’s growing engagement in these programs, the steering committee is showing their commitment to our work abroad,” Dwyer said. “Developing new markets for fuel ethanol exports offers new opportunity for U.S. corn and sorghum producers and offers us new ways to partner with customers looking to reduce their fuel costs and their environmental impacts.”

Ethanol, Exports, Growth Energy, RFA, USGC

Report Confirms Ethanol’s GHG Reductions

Joanna Schroeder

Screen Shot 2016-03-21 at 8.22.03 PMEarlier this month the European Commission released its new report, “The land use change impact of biofuels consumed in the EU,” (GLOBIOM). The study assessed the (indirect) land use change (LUC) impacts of biofuels demand expected as a result of Europe’s 2020 climate and energy policy. According to the European Renewable Ethanol Association (ePURE), the study found that increased demand for European produced ethanol would have low impacts on land use change and confirms ethanol’s high net greenhouse gas (GHG) savings.

The study was conducted by IIASA, Ecofys and E4Tech at the request of the European Commission. The report found that the increased demand from ethanol made from sugar and starch crops, such as corn, along with cellulosic biomass bill have low impacts ILUC. In addition, the study found that this increase in demand will have no impact on food prices through 2020.

Specifically, the study finds that:

  • Conventional ethanol feedstocks, such as sugar and starch crops, have much lower land use change emissions impacts than other biofuel feedstocks. For example, in Europe the key feedstocks used to produce ethanol would have LUC emissions of 14g CO2 e/MJ for maize, 15g CO2 e/MJ for sugar beet and 34g CO2 e/MJ for wheat.
  • Cellulosic ethanol feedstocks similarly have a low or even positive LUC impact (16g CO2 e/MJ for straw ethanol, 0g CO2 e/MJ if a sustainable straw removal rate is introduced, -12g CO2 e/MJ and -29g CO2 e/MJ for perennials and short rotation crops).
  • Land use change impacts and associated emissions can be much lower if: abandoned land in the EU is used for biofuels production; yield increases occur as a result of biofuels demand; and/or peat drainage in Malaysia and Indonesia is halted.

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biofuels, Environment, Ethanol, Indirect Land Use

Air New Zealand & Virgin Partner on Aviation Biofuel

Joanna Schroeder

The aviation biofuel industry is flying to new heights. Air New Zealand and Virgin Australia have announced a partnership to investigate options for locally produced aviation biofuel. This comes on the heels of the announcement that week that United Airlines is now flying a number of its commercial flights with biojet fuel.

logosAs part of the initiative, the two airlines have released a Request for Information (RFI) on possible locally-produced biojet fuel. Both airlines say they are committed to ensuring that aviation biofuel delivers environmental, social and economic benefits, and respondents to the RFI are encouraged to address these principles. Companies can express interest through May 30, 2016.

Air New Zealand Chief Flight Operations and Safety Officer Captain David Morgan says the airline recognizes the impact aviation has on the environment and this RFI is a key initiative under its carbon management program. “By working in partnership with our alliance partner Virgin Australia we hope we can stimulate the local market, drive innovation and investment and potentially uncover a sustainable biofuel supply suitable for our respective operations,” said Morgan.

“Aviation biofuel offers a significant opportunity for the aviation industry to reduce emissions whilst also building long-term fuel security for the sector,” added Robert Wood, head of sustainability for Virgin Australia. “We are seeing the development of the aviation biofuel industry accelerate internationally but that is not yet the case for our region. We are confident that our collaboration with Air New Zealand to procure a large volume of aviation biofuel will de-risk investment in the sector, creating high-tech, high-skilled jobs in the region.”

aviation biofuels, biojet fuel

Research Converts Tomato Paste to Energy

Joanna Schroeder

© Jamie Wilson | Dreamstime Stock Photos

© Jamie Wilson | Dreamstime Stock Photos

Researchers from South Dakota School of Mines & Technology have developed a way to convert tomato waste in electricity. Led by Venkataramana Gadhamshetty, Ph.D., he and his team used a biological-based fuel cell that uses tomato waste left over from harvests in Florida. The characteristics of the decomposing waste make it a “perfect fuel source” for enhancing electrochemical reactions, Gadhamshetty said.

Food waste comes in many forms including the leftovers of manufacturing processes of sauces, ketchup and other cooking products. He began the research several years ago as a professor at Florida Gulf Coast University. He says the project is important to Florida, where tomatoes are a key crop, because the state generates 396,000 tons of tomato waste every year but lacks a good treatment process. Gadhamshetty said a lot of this waste is ripe with chemical energy and he and his team wanted to see if this could be used as a source of electrons. The answer: yes.

The team tested the defective tomatoes in a new electrochemical device built at the South Dakota Mines campus, which degrades tomato waste and then extracts electrons. The power output from their mini reactor is small: 10 milligrams of tomato waste can result in 0.3 watts of electricity. But the researchers note that with an expected scale up and more research, electrical output could be increased by several orders of magnitude.

Screen Shot 2016-03-21 at 9.11.17 AM“It might be possible to one day put this device at the bottom of my kitchen sink” to convert waste into household electricity, Gadhamshetty said who added that this alternative fuel source is inexpensive technology because operations can be conducted at room temperature requiring no major investment of materials.

Gadhamshetty and SD Mines graduate student Namita Shrestha are collaborating on the project with Alex Fogg, an undergraduate chemistry major at Princeton University. Other project collaborators include Daniel Franco, Joseph Wilder and Simeon Komisar, Ph.D., at Florida Gulf Coast University.

“I’m really excited about this research. I come from a small country, Nepal, and we have power cut off as much as 20 hours in a day, so this could really help developing countries,” Shrestha said. “We cannot afford expensive technologies like waste treatment.” According to Shrestha’s calculations, there is theoretically enough tomato waste generated in Florida each year to meet Disney World’s electricity demand for 90 days, using an optimized biological fuel cell.

Electricity, Research, Waste-to-Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1REG Energy Services, LLC, a wholly-owned subsidiary of Renewable Energy Group, Inc., has secured a $30 million line of credit from Iowa-based Bankers Trust. The line is a one-year credit facility, with an accordion option to expand to $40 million, subject to customary conditions. Chad Stone, REG CFO noted, “This credit line gives REG Energy Services additional capital to expand our blended fuel offerings and add to our already expansive distribution network.
  • The National Renewable Energy Laboratory (NREL) has updated its annual survey of US non-starch ethanol and renewable hydrocarbon biofuels producers. The 2015 Survey of Non-Starch Ethanol and Renewable Hydrocarbon Biofuels Producers provides an inventory of the domestic advanced biofuels production industry as of the end of calendar year 2015, documenting important changes (e.g., biorefinery development, production capacity, feedstock use, and technology pathways) that have occurred since the publication of the original 2013 survey.
  • Stratas Advisors’ has released its Global Biofuels Outlook, a regional and country-level forecast through 2035 of policy, prices, supply and demand. This forecast has a globally-balanced assessment from Stratas Advisors’ petroleum and alternative fuels services. The report shows global ethanol usage expanding the gasoline pool by nearly 9 percent and biodiesel usage expanding the diesel pool to 3 percent by 2035.
  • The Department of the Interior and the Bureau of Ocean Energy Management took an important step toward the goal of developing sustainable offshore wind power off the coast of New York, by designating an official “Wind Energy Area” eleven nautical miles off Long Beach on Long Island’s South Shore. The news came one day after the administration withdrew its plan for offshore oil and gas drilling off the southeast Atlantic coast.
Bioenergy Bytes

Lowes Removes ‘Ditch Ethanol’ Signs

Joanna Schroeder

The Renewable Fuels Association wrote a letter to Lowe’s CEO requesting that the “Ditch Ethanol” signs that were popping up on the Midwest be removed. Shortly after the letter was received, Lowes contacted RFA and said they were in the process of removing all the signs and they should all be gone within several days. The signs inaccurately warned consumers not to use ethanol in small engines.

rfalogo1“Thank you to Lowe’s for listening to RFA’s member companies and the nearly 400,000 workers and farmers across the country whose employment is dependent upon the success of renewable fuels,” said RFA President and CEO Bob Dinneen. “It is refreshing to see a large national corporation move so quickly to correct an obvious mistake. Lowe’s should be commended for the leadership they have demonstrated to address this situation conclusively and swiftly. We will continue to combat any and all misinformation about ethanol, to ensure consumers have access to the lowest cost, cleanest octane source in the world.”

Ethanol, Ethanol News, RFA

Chicago Thornton’s Locations Now Selling E15

Joanna Schroeder

Thornton’s will be selling E15 at 43 Chicago-area locations by the end of this month. The fuel retailer has branded the ethanol blend Unleaded15.

Screen Shot 2016-03-18 at 10.54.35 AM“Unleaded 15 offers a great value to our Chicago guests, and supports our desire to provide the best possible fuel options,” said Jeff Gallic, Vice President of Fuel Supply. “Thorntons has offered E85 for years and given the market demand for higher ethanol blends, we feel Unleaded15 is the next logical step for our fuel portfolio.”

The industry responded to the news today with Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA) stating, “We are pleased to see E15’s footprint growing throughout the country. Chicago consumers can now benefit from using a lower carbon, higher octane fuel blend that is approved for nearly 80% of today’s automotive fleet. This is also the first significant rollout of E15 in a reformulated gasoline market, designated by EPA in nearly 20 cities to help reduce smog levels with cleaner gasoline. That designation means E15 can be sold year-round in Chicago without being hampered by burdensome EPA gasoline volatility restrictions when the nation switches from winter to summer gasoline regulations.”

Growth Energy Co-Chair Tom Buis added, “On behalf of Growth Energy and its members, I would like to commend Thorntons for their decision to offer consumers Unleaded15, providing them with the opportunity to choose a homegrown, renewable fuel at the pump. By adding this E15 offering to their fuel portfolio, Thorntons has demonstrated their commitment to consumer choice, and a cleaner burning, homegrown high-performance fuel. Now Chicagoans will have the chance to do so as well by choosing to fill up with Unleaded15.”

E15, Ethanol, Growth Energy, RFA

#Propane Power on a Roll

Joanna Schroeder

growmark-propane-beckyPropane power is on a roll these days, going far beyond it’s traditional uses of home heating and grain drying, moving into areas such as fleet vehicles and school buses. To learn more about propane’s market expansion, Cindy Zimmerman spoke with Becky Hornblower, GROWMARK’s propane marketing and technical services manager. GROWMARK is one of the country’s largest retailers of propane.

According to Hornblower, GROWMARK markets propane in 16 states and operates more than 300 company-owned transports, which she said really helps with their supply network. This resulted in the sale of more than 200 million gallons of propane sold in fiscal year 2015, and this year looks even stronger.

One major area of growth for the company is the autogas market and Hornblower noted that their members have been really proactive in growing this market. She explained autogas is the term used when propane is used in a motor-fueled vehicle such as a pickup truck, car, bus, fleet delivery vehicle and the like.

Their network is growing and they have specific accounts and networks in Iowa, Wisconsin and Illinois for school systems that are operating their school buses using propane autogas. They also have municipality accounts, transit and commercial lawn company accounts to name a few.

“This market presents not only a strong opportunity for our position in the industry, especially as you look at growth year round versus cyclical cycles with residential and ag demand,” said Hornblower. She added that end users are really seeing the benefits of the cleaner burning aspects of propane. For example propane is easier on the engines saving maintenance costs and prolonging engine life. She said that there are tax credits and incentives for propane conversion and use and propane is safer than gasoline.

What about savings in action? She said one school district reported savings of more than $300,000 over 10 years with their propane autogas bus fleet.

Learn more about propane in this week’s ZimmCast: Interview with Becky Hornblower, GROWMARK

Alternative Vehicles, Audio, GROWMARK, Propane

RFA: Ditch the ‘Ditch Ethanol’ Sign Lowes

Joanna Schroeder

The Renewable Fuels Association (RFA) is calling out Lowes for its “ditch ethanol” signage at stores. In a letter to Lowes CEO Robert Niblock, RFA CEO and President Bob Dinneen urged the removal of a sign appearing at several Midwest locations that inaccurately warn consumers not to use ethanol blends in small engines. Dinneen writes that the “Ditch the Ethanol” sign contains numerous statements that “are simply incorrect and are contrary to the very guidance found in the owner’s manuals on the shelves of your own stores.”

“We find the sign very troubling and are concerned with the massive amount of misinformation posted to ostensibly educate consumers,” said Dinneen. “We urge Lowe’s to remove the misleading sign, or else we may be forced to pursue legal efforts to prevent the further dissemination of false information to consumers.”

Lowes-Ethanol-SignIn the letter, RFA rebutted each statement made on the sign, including:

Ethanol burns hotter and wears out your small engine faster.

  • Every small engine that you offer at Lowe’s was designed and engineered to run on ethanol blends up to 10% ethanol. If you read any small engine owner’s manual found at Lowe’s, you will see this fact, and that all warranties cover the use of ethanol blends up to 10% ethanol. If this sign was intended for higher blends of ethanol, it should be clarified, and also should be noted that any blend of ethanol in small engine applications would be illegal. This would include E15 and E85. All blends above 10% are clearly labeled at the pump to ensure consumers know that they are not purchasing E10 (or 10% ethanol).
  • Ethanol blended gasoline does not wear out your engine faster, or the manufacturers could not offer warranty to cover today’s fuel. I have personally used E10 in all of my small engines for more than two decades, and have yet to have an issue. This statement makes it seem like Lowe’s has some unique insight and data on engine wear that the own manufacturers that make the engines do not. I highly doubt that is accurate.

Most pump gas contains 10% or more ethanol.

  • It is true that most pump gas contains ethanol, but 10% ethanol or less, otherwise known as E10 (or fuel approved for all small engine use). Roughly 96% of all unleaded sold today contains 10% ethanol.
  • There are only ~180 stations that sell E15 and ~3,400 stations that sell E85, both of which are not approved for small engines. But, these two higher blends are definitely not commonplace in the 140,000 retail fuel stations.”

“I am asking respectfully that Lowe’s work with us to remove this misleading signage at your stores immediately,” Dinneen concluded.

Ethanol, Ethanol News, RFA

Renewable Chemicals Tax Credit Passes in Iowa

Joanna Schroeder

The Iowa Senate has approved a new five-year production tax credit for renewable chemicals. The goal of the incentive is to drive innovation in the sector within the state. Renewable chemicals will be defined in Iowa’s tax code as having at least 50 percent biobased content and not being used as food, feed or fuel. The value of the tax credit is limited to $105 million over five years. Identical legislation was approved yesterday by Iowa’s House Ways and Means Committee.

Joe Hrdlicka, executive director of the Iowa Biotechnology Association (IowaBio), said of the news, “Iowa is securing a leadership position in building a biobased economy, creating new economic opportunities for farmers and manufacturers, and generating well-paying jobs. We thank Gov. Terry Branstad and Director of the Iowa Economic Development Authority Debi Durham for championing this policy.”

Brent ENew-Bio-Logorickson, Executive Vice President of BIO’s Industrial & Environmental Section, added, “Renewable chemicals help protect the environment and create new jobs. Iowa’s new tax credit will encourage biotechnology and renewable chemical companies to make investments and deploy innovative homegrown technology in Iowa. BIO will continue to work with the Iowa legislature, other states and the federal government to level the playing field in economic development incentives for renewable chemical and biobased manufacturing technologies.”

BIO, biochemicals