Carson Supports RFS through 2022

Cindy Zimmerman

carson-nwDuring a recent campaign stop in Iowa Republican presidential candidate Ben Carson said the promise of the Renewable Fuel Standard (RFS) needs to be kept through 2022.

“(A)s far as the Renewable Fuel Standard is concerned, there were certain promises that were made that extend out until 2022. And many people, you know, invested a lot of time, energy and resources based on those promises that were made. Those promises have to be kept,” said Carson during an appearance at Northwestern University in Orange City, Iowa on December 18.

According to America’s Renewable Future (ARF), Carson made similar comments at stops in Council Bluffs and Carroll, Iowa this month.

“Carson’s grasp of the issue of the RFS has tightened and we are glad to see him recognize the importance of keeping the promise made to investors and the 73,000 Iowans whose livelihoods depend on it,” said America’s Renewable Future State Director Eric Branstad.

ARF will be releasing a final report card in early January designating each candidate as either good or bad on the RFS. ARF will let Iowans know where the candidates stand through paid media and grassroots efforts.

Listen to Carson’s comments here: GOP candidate Ben Carson on RFS

Audio, Ethanol, Ethanol News, RFS

Merry Christmas From DomesticFuel!

Joanna Schroeder

The DomesticFuel Team is thankful to all of you for tuning in through a busy 2015 as we worked to provide the latest alternative energy news. We’ll be bringing you some news throughout the end of the year and resume full coverage on January 2, 2016. 

We hope you have a Merry Christmas and a healthy and prosperous New Year.

ZimmComm Christmas Card

Miscellaneous

ACE: Tax Credits Will Increase Cheaper Ethanol Blends

Joanna Schroeder

Last week Congress approved the Omnibus Bill that included tax credit extensions for clean, renewable energy. One of these credits is for retail fuel station owners who buy equipment to offer alternative fuels such as E85. Ron Lamberty, American Coalition for Ethanol (ACE) senior vice president and a fuel retailer, says additional ethanol blends  could further increase profitability for retailers.

E85 Sign December 2015

Photo Credit: Joanna Schroeder

The Alternative Fuel Vehicle (AFV) Refueling Property Credit until the end of next year, according to Lamberty. The credit, which allows retail gas station owners to claim a 30% tax credit, up to a maximum of $30,000 per location for qualified AFV refueling infrastructure, originally expired on December 31, 2014.

“Marketers who saw the opportunity to gain new customers by offering E85 at the pump, also saw they could increase profits by selling the RIN credits they earned for selling higher ethanol blends. Some added pumps earlier this year, others will, in 2016,” said Lamberty “E85 compatible equipment costs more than standard or E25 compatible fueling equipment, and this credit helps offset some of that additional cost. That means retailers can pass the lower price of E85 through to consumers sooner, increasing volume and RIN profits, which most station owners use to reduce E85 prices even further.”

That means, says Lamberty, retailers can pass the lower price of E85 straight through to consumers, increasing volume and RIN profits, which most station owners use to reduce E85 prices even further.”

Lamberty pointed out that the credit is available for E85 fueling infrastructure only, and is scheduled to expire again at the end of 2016. “Fortunately, the equipment needed to sell ethanol blends up to E25 – including E15, adds only a few hundred dollars per dispenser,” he said.

“Having E15 – a lower cost, higher octane blend that 80 percent of the cars on the road can use – should justify that expense.  And with a growing number of station owners, including innovative retailers like Kum & Go, Sheetz and Protec, adding E15, consumers will quickly become more familiar and be looking for E15,” added Lamberty. “Those retailers were already selling E85 in some locations, and are expanding offerings through USDA’s Biofuel Infrastructure Partnership (BIP) program. We’re hoping the availability of this tax credit inspires those companies and others to make higher ethanol blends available sooner, in even more places.”

ACE, E85, Ethanol, politics, Renewable Energy

Pollers Wonder Climate Accord’s Role for Ag

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What do you think climate accord will mean for ag?”

It looks like the majority feel that climate accord will add to the already over-abundant regulations or is simply bad for everyone. Ag Secretary Tom Vilsack said the COP21 deal will support a “better-nourished, stable, secure future” and the benchmarks “build on the ambitious climate smart strategy being implemented by U.S. farmers, ranchers and foresters.” No matter how you feel, the climate discussion isn’t going anywhere as we enter 2016.

Here are the poll results:

  • Meaningless – 10%
  • Good for farmers- 5%
  • More regulations – 35%
  • Good for everyone – 20%
  • Bad for everyone – 30%
  • Other – 0%

Our new ZimmPoll is now live and asks the question, What’s your favorite food/drink gift?

‘Tis the season for yummy gifts of goodies to eat and drink – which is probably why we always end up gaining a few pounds over the holidays! So, what is your favorite food or drink to get or give as a gift during the holidays?

ZimmPoll

Ethanol Report Looks at 2015 in Review

Cindy Zimmerman

ethanol-report-ad2015 was another year of highs and lows for the ethanol industry. Renewable Fuels Association (RFA) president and CEO Bob Dinneen says many of the positives, such as record production and increased exports, were offset by negatives like tighter margins and trade barriers.

In this Ethanol Report, Dinneen takes a look back at some of the good news and bad news for the ethanol industry in 2015 as we prepare to enter another new year.

Ethanol Report on 2015 Year in Review
Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Just in Time for Christmas, Biodiesel Producers Get Extra Jingle

John Davis

uscapitolIt might not be just the jingle of sleigh bells that puts a smile on biodiesel producers faces this Christmas season. With Congress passing the tax extenders legislation and the president signing it into law, many producers will enjoy a little extra figurative jingle in their pockets, as the federal $1-a-gallon biodiesel blenders tax credit is made retroactive for 2015 and covers all of 2016.

Business Record reports biodiesel behemoth Renewable Energy Group will see a windfall of $125 million to $135 million from the measure passing. And Canadian biodiesel maker BIOX, with a 16 million gallon per year biodiesel refinery in Ontario, announced it would see increased profits thanks to the credit.

Alan Rickard, CEO of BIOX Corporation said, “This is a significant piece of legislation that will provide much needed industry stability and support. On the retroactive passage of this legislation, BIOX expects a positive impact of approximately US$7 million to be recorded in our Fiscal Q1 results, related to the entire 2015 calendar year. Even greater is the market stability that the proactive passage of this legislation provides. This, combined with the EPA setting the Renewable Volume Obligations for the Renewable Fuel Standard (RFS2) from 2014 through 2017 and Ontario’s Greener Diesel requirement increasing to 3% in 2016, gives us a positive outlook for the biomass based diesel market in North America.”

Biodiesel

Bill Howell Wins New Holland Boomer 47

Joanna Schroeder

Bill Howell was the winner of the 2015 Growth Energy Individual Member Sweepstakes and took home a Boomer 47, a 47 hp tractor customized with Growth Energy racing decals. The contest was sponsored by New Holland and Growth Energy and Howell was presented with his Boomer 47 in Carroll, Iowa this week.

Bill and Katherine Howell take a seat in their new New Holland Boomer 47 as part of the 2015 Growth Energy Individual Member Sweepstakes. Photo Credit: Carroll Broadcasting Company.

Bill and Katherine Howell take a seat in their new New Holland Boomer 47 as part of the 2015 Growth Energy Individual Member Sweepstakes. Photo Credit: Carroll Broadcasting Company.

“We are proud to support farmers and those who choose to work the land and who work so hard every day to grow crops to help feed the world and fuel our nation,” said Growth Energy Co-Chair, Tom Buis. “Our members are working hard to revitalize our rural economies, create new jobs and ensure our nation will have a sustainable and secure energy future. This sweepstakes was part of a larger effort to continue to build grassroots support for biofuels across the country. Our growing grassroots advocates, such as Mr. Howell, help promote our industry and ensure that lawmakers in Washington understand the important role biofuels play in America’s heartland.”

Howell was presented with the Boomer 47 by Clay Haley with Haley Equipment who sells New Holland equipment, along with Scott Wangsgard and George Rigdon representing New Holland Agriculture.

“New Holland is proud to support Growth Energy in their individual membership growth initiatives and we look forward to continuing the partnership in 2016,” said Ron Shaffer, Director of Commercial Sales Regions and Network Development for New Holland North America. “We are also pleased to have the opportunity to provide Mr. Howell with the Boomer 47 and we hope he will find it to be a valuable asset to his operation.”

Agribusiness, biofuels, Growth Energy, New Holland

RFA Analysis: More Automakers Approving E15

Joanna Schroeder

Photo Credit: Joanna Schroeder

Photo Credit: Joanna Schroeder

According to an analysis conducted by the Renewable Fuels Association (RFA) of 2016 model year (MY) warranty statements and owners manuals, auto makers are approving E15 use in more than 70 percent of new vehicles. This is an increase from MY 2015 when a little over 60 percent of vehicles were approved to use E15.

RFA’s analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA’s decision means it joins the other members of the “Detroit Three” (General Motors and Ford) in unequivocally allowing E15. Other key points from RFA’s analysis include:

  • GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles.
  • More than 45 percent of the vehicles sold in the United States this year have been produced by the Detroit Three, according to industry data.
  • Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.
  • When flex-fuel vehicles (FFVs) produced by Nissan and Mercedes-Benz are included, RFA estimates the percentage of MY 2016 automobiles explicitly approved by manufacturers to use E15 is even larger (FFVs are approved to use up to 85 percent ethanol blends).
  • With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest “hold-out” when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that “E-15 fuel will adversely affect the emission control devices and systems of the vehicle,” which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol “can cause paint damage.”
  • Hyundai, Kia, and Subaru also continue to exclude E15 from their fuel recommendations. Together, these three foreign automakers account for about 11 percent of U.S. auto sales. While Subaru recommends that gasoline used in its vehicles contain “no more than 10% ethanol,” it allows the use of gasoline containing 15% MTBE—a toxic substance banned in dozens of states because of groundwater pollution concerns.
  • Interestingly, BMW’s MINI Hardtop appears to allow the use of 25% ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25%, i.e., E10 or E25, may be used for refueling.”

“This analysis should open some eyes and finally lay to rest the ridiculous myth that automakers do not allow the use of E15 in their vehicles,” said RFA President and CEO Bob Dinneen. “In fact, 2016 will be the fifth year in a row in which some auto manufacturers have explicitly included E15 in owners’ manuals and warranty statements as an approved fuel. With each passing year, more and more vehicles sold in the U.S. carry the manufacturer’s unequivocal approval for E15; and with each passing year, the auto warranty misinformation campaign undertaken by AAA and Big Oil fades further into irrelevance.”Read More

biofuels, E15, RFA

Enviva Buys Virginia Wood Pellet Plant

John Davis

envivaEnviva has bought a Virginia wood pellet fuel plant for $131 million. This news release from the company says the Southampton plant will produce more than half a million metric tons per year of the green fuel and brings Enviva’s production capacity to 2.2 million metric tons per year.

“We are excited to announce our first drop-down transaction with our sponsor. The fully-contracted Southampton plant is a world-class facility that fits seamlessly into our core business and will significantly increase our production capacity and the tenor of our contracted cash flows,” said John Keppler, Chairman and Chief Executive Officer. “The acquisition, which is expected to be immediately accretive to the Partnership’s distributable cash flow per unit, provides the opportunity to substantially increase our distribution while still maintaining conservative coverage ratios.”

“Having a strong sponsor is a major advantage during a period of choppy financial markets,” said Mr. Keppler. “Our sponsor’s support ensured that this highly accretive transaction was completed on schedule.”

The conflicts committee of the board of directors of Enviva’s general partner, comprised entirely of independent directors, approved the terms of the transaction. Evercore served as exclusive financial advisor to the conflicts committee on the transaction. Andrews and Kurth, LLP served as legal counsel to the conflicts committee. Vinson & Elkins L.L.P. served as legal counsel to the sponsor’s joint venture.

biomass

Waste Fat Biodiesel to Power London Buses

John Davis

londonbus1About one-third of London’s buses will soon be running on biodiesel made from animal fat waste. This article from the Guardian says two bus operators, Stagecoach and Metroline, will get the green fuel from Argent Energy at a 20 percent biodiesel (B20) blend.

By March next year, almost 3,000 of the capital’s 8,900 buses will be powered by the B20 fuel blend.

It is estimated that buses running on waste-based B20 produce 10 per cent less carbon emissions than a bus using ordinary diesel.

Transport for London (TfL) said it is resulting in a huge reduction in CO2 emissions of 21,000 tonnes each year.

Mike Weston, TfL’s Director of Buses, said: “Our bus fleet is now making a major contribution to improving air quality and bringing down CO2 emissions.

“This improvement, which will reduce CO2 emissions by 21,000 tonnes each year, is being introduced now with no extra spend needed and no long delay for the fitting of new kit.

“It’s just one of a number of measures we are taking to make London’s environment better for everyone.”

Biodiesel, International, Waste-to-Energy