U.S. Treasury and IRS Release SAF Guidance

Cindy Zimmerman

The U.S. Department of the Treasury and Internal Revenue Service (IRS) today released guidance on the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA).

The Treasury Department’s guidance provides important clarity around eligibility for the SAF Credit. The credit incentivizes the production of SAF that achieves a lifecycle greenhouse gas emissions reduction of at least 50% as compared with petroleum-based jet fuel. Producers of SAF are eligible for a tax credit of $1.25 to $1.75 per gallon. SAF that decreases GHG emissions by 50% is eligible for the $1.25 credit per gallon amount, and SAF that decreases GHG emissions by more than 50% is eligible for an additional $0.01 per gallon for each percentage point the reduction exceeds 50%, up to $0.50 per gallon.

Under the guidance issued today, numerous fuels will qualify for the credit, including valid biomass-based diesel, advanced biofuels, cellulosic biofuel, or cellulosic diesel that have been approved by EPA under the Renewable Fuel Standard (RFS).

Fuels that achieve a 50% or greater reduction in lifecycle greenhouse gas emissions under the most recent Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) standard will continue to qualify under today’s guidance. In addition, EPA, DOT, USDA, and DOE are announcing their commitment to release an updated version of DOE’s GREET model by March 1, 2024. Pending further guidance from the Treasury Department, the updated GREET model will provide another methodology for SAF producers to determine the lifecycle GHG emissions rates of their production for the purposes of qualifying for the SAF Credit for SAF sold or used during calendar years 2023 and 2024.

Reacting to the announcement, Renewable Fuels Association President and CEO Geoff Cooper said, “While there are important carbon modeling updates and details that still need to be worked out, we are cautiously optimistic that today’s guidance could open the door to an enormous opportunity for America’s farmers, ethanol producers and airlines. The Biden administration is recognizing that the best way to meet ambitious SAF targets is to maximize marketplace flexibility, make use of existing low-carbon fuel assets, and stimulate innovation and competition across the entire supply chain.”

Cooper discusses the guidance in this interview:
RFA CEO Geoff Cooper interview (5:53)

American Coalition for Ethanol (ACE) CEO Brian Jennings also welcomed the announcement. “Today’s decision helps clear the runway for ethanol-to-jet. Treasury made the right call to enable the use of GREET to determine the carbon intensity of SAF because it is the global gold-standard for calculating GHGs from transportation fuels and GREET is the most up-to-date, accurate model reflecting the best-available science, including farm practices. Treasury’s decision will enable corn ethanol to emerge as a significant SAF feedstock in the years to come and fulfill President Biden’s pledge that farmers would be providing 95 percent of SAF in the next 20 years.”

ACE, Audio, aviation biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF

Dates for 2024 ACE DC Fly-in Set for March

Cindy Zimmerman

ACE staff pose during 2023 Fly-in

The American Coalition for Ethanol (ACE) has announced its 13th annual DC Fly-in and Government Affairs Summit will take place March 14-15, 2024, assuming Congress will be in session on those dates.

Building off this past spring’s successful return to Capitol Hill, ACE is eager to continue hosting one of the industry’s longest-running and successful fly-ins for biofuels advocates.

“We encourage ethanol supporters to mark their calendars for the ACE fly-in March 14-15,” said Brian Jennings, ACE CEO. “Taking place in an election year, our gathering presents a strategic opportunity to underscore the significance and vitality of a robust U.S. ethanol industry to Members of Congress, their dedicated staff and key decision makers with EPA, USDA and the Treasury Department.”

“In the 12-year legacy of ACE’s DC fly-ins, the most impactful gatherings have struck a balance between engaging with our staunch supporters and reaching out to Members of Congress who may be unfamiliar, hold differing views on our policy priorities, or hail from regions outside the Corn Belt,” said Katie Muckenhirn, Vice President of Government Affairs. “While lawmakers routinely hear from lobbyists and association representatives, the power of a deeply personal perspective showcasing the direct benefits of the ethanol industry can provide a fresh and compelling viewpoint on our issues.”

The meetings will take place on Capitol Hill and at the Hyatt Regency Washington on Capitol Hill. For more information about the event, please contact Katie Muckenhirn at kmuckenhirn@ethanol.org, Ashley Borchert at aborchert@ethanol.org or visit ethanol.org/events/fly-in.

ACE, Ethanol, Ethanol News

Lawmakers Demand Action on E15 Waiver Request

Cindy Zimmerman

A bipartisan, bicameral group of 22 lawmakers sent a follow up letter to the White House this week seeking swift action on regulations that would allow year-round sales of 15% ethanol blended fuel (E15) in eight Midwest states, as requested in April 2022 by the states’ governors.

Congressman Brad Finstad (R-MN), Congresswoman Nikki Budzinski (D-IL), Senator Joni Ernst (R-IA), and Senator Tammy Baldwin (D-WI) spearheaded the letter urging the Environmental Protection Agency (EPA) and the Office of Management and Budget (OMB) to implement their outstanding regulatory action to remove the 1-psi volatility waiver for gasoline and ethanol blends, like E15, in Midwest states.

It has been more than 300 days since Rep. Finstad and Sen. Ernst sent an initial letter requesting EPA and OMB act on a request made by several Midwest governors to lift restrictions on the year-round sale of E15, and more than 500 days since the statutory deadline of the governors’ April 2022 request.

“It is long past time for the Biden Administration to implement our Midwest states’ request and permanently remove restrictions on the sale of E15,” said Rep. Finstad. “Sadly, this White House is intent on stonewalling the sale of a cheaper, cleaner fuel option for consumers and by doing so, withholding certainty for our biofuel producers and fuel retailers.”

Other signers included Sens. Pete Ricketts (R-NE), Sherrod Brown (D-OH), Deb Fischer (R-NE), Chuck Grassley (R-IA) and Amy Klobuchar (D-MN), and Reps. Mike Flood (R-NE), Eric Sorensen (D-IL), Adrian Smith (R-NE), Mark Pocan (D-WI), Ashley Hinson (R-IA), Randy Feenstra (R-IA), Dusty Johnson (R-SD), Tom Emmer (R-MN), Mariannette Miller-Meeks (R-IA), Michelle Fischbach (R-MN), Mark Alford (R-MO) and Max L. Miller (R-OH).

Renewable Fuels Association President and CEO Geoff Cooper thanked the lawmakers for their action. “We’re hopeful that their letter will help break the logjam and ensure drivers in these states are able to enjoy the benefits of lower-cost, lower-carbon E15 all year long. Waiting until the last minute to act on the governors’ request isn’t good for anyone. The marketplace needs clarity and certainty now about the status of E15 in these eight states.”

At the same time, RFA continues to call on Congress to pass the Nationwide Consumer and Fuel Retailer Choice Act, which would permanently remove the summertime barrier on E15 nationwide.

E15, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Renewable Fuel for Ocean Vessels Bill Introduced

Cindy Zimmerman

Legislation introduced recently by U.S. Representatives Mariannette Miller-Meeks (R-IA) and John Garamendi (D-CA) would allow companies to preserve RIN credits under the Renewable Fuel Standard (RFS) for renewable fuel used for ocean-going vessels.

“Ocean-going cargo ships, tankers, and passenger vessels have a need for low-carbon, low-sulfur biodiesel and renewable diesel which provides an additional market for biofuels,” said Miller-Meeks. “This legislation allows for RINs to be generated for renewable marine fuel without requiring an obligation on any parties.”

The legislation is supported by Clean Fuels Alliance America, the American Soybean Association, and the North American Renderers Association (NARA), in addition to the Iowa Biodiesel Board, Iowa Soybean Association, the American Waterways Operators and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.

“International shipping companies and cruise lines are increasingly seeking low-carbon biodiesel and renewable diesel to meet climate goals and consumer demand,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This commonsense legislation will remove a regulatory roadblock and enable biodiesel and renewable diesel producers to meet the low-carbon fuel needs of shipping companies at a competitive price. It will allow refiners and blenders to keep RINs for fuel used in ocean-going vessels that are currently being sacrificed.”

ASA, Biodiesel, biofuels, Boats, Clean Fuels Alliance

ASTM International Honors Clean Fuels’ Fenwick

Cindy Zimmerman

Clean Fuels Alliance America is proud to announce that Scott Fenwick, Technical Director, has been awarded the prestigious Sydney D. Andrews Scroll of Achievement by ASTM International in recognition of his contributions to the committee responsible for the standards on petroleum products, liquid fuels and lubricants (D02).

ASTM, the globally recognized leader responsible for standardizations used around the world, presents the Scroll of Achievement to individuals who have shown exceptional commitment to the development and delivery of standards within their respective committees. This esteemed accolade underscores Fenwick’s long career in advancing the clean fuels industry, especially through his work with D6751, the ASTM specification for biodiesel.

Since 1998, Fenwick has served on various subcommittees within D02 leading numerous working group activities and interlaboratory studies, and receiving multiple awards in Excellence, Appreciation and Society Service. In 2018, Fenwick was appointed chairman of the D02 Committee, serving over 2,500 members who oversee more than 800 standards relating to petroleum products and lubricants.

Read more from Clean Fuels.

advanced biofuels, Biodiesel, Clean Fuels Alliance

Treasury Expected to Release SAF Guidance

Cindy Zimmerman

It is being reported that the Treasury Department may release highly-anticipated guidance on sustainable aviation fuel tax credits, possibly this week.

In anticipation of the announcement, Renewable Fuels Association President and CEO Geoff Cooper said this guidance represents a “make-or-break” opportunity for the future of sustainable aviation fuels. “The Treasury guidance will go a long way in determining whether U.S. farmers and ethanol producers are able to significantly contribute to the goal of decarbonizing the aviation sector, or if they’ll be left by the wayside,” said Cooper. “All we’re asking for is a fair, science-based methodology that gives us an opportunity to compete.”

Cooper says RFA hopes the guidance will include explicit and specific recognition of the Argonne GREET model as an allowable methodology for determining the carbon intensity of various SAF production pathways. “Without recognition of the GREET model, we fear commercial SAF production will simply not materialize at the scale necessary to truly decarbonize the aviation sector in the decades ahead. The ambitious goals of the Biden administration’s SAF Grand Challenge will not be realized unless we are able to tap into the vast resources of American agriculture.”

aviation biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF

Ethanol Exports Dip in October

Cindy Zimmerman

U.S. ethanol exports moved three percent lower in October after an up month in September, but still maintained a respectable 117.1 million gallons (mg), according to the latest report from the Renewable Fuels Association. Year-to-date exports, totaling 1.16 billion gallons, are steady with last year at this time.

Canada was our largest destination for the 31st consecutive month with exports of 64.6 mg (94% denatured) accounting for 55% of total sales on a 7% increase from September. This is the largest single-country purchase since Brazil’s offtake in March 2019. The U.S. exported 13.7 mg to India (following four months of near-zero volumes) and 12.6 mg to the United Kingdom (down 8% from September). Virtually all remaining ethanol exports were distributed among seven markets, with the largest volumes landing in the Philippines (6.5 mg, +176%), South Korea (6.0 mg, +17%), Peru (5.7 mg, +89%), and Mexico (5.1 mg, -9%). Brazil again was notably absent from the U.S. ethanol export market.

Exports of the ethanol co-product dried distillers grains (DDGS) dropped by 13% in October to a six month low of 896,708 metric tons (mt). Mexico remained the largest destination for the sixteenth consecutive month with exports of 193,524 mt, down four percent from September. So far this year, U.S. DDGS exports total 8.99 million mt, four percent behind last year at this time.

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

New NASCAR Cup Series Iowa Corn 350, Powered by Ethanol

Cindy Zimmerman

Iowa Corn is proud to announce the first-ever NASCAR Cup Series race in the state – the Iowa Corn 350, Powered by Ethanol – will showcase the performance of ethanol on the world’s fastest short-track, surrounded by corn fields.

“I am pleased to share with the NASCAR family, why choosing higher blends of ethanol benefits everyone,” said Stan Nelson, a farmer from Middletown and the Iowa Corn Promotion Board President. “We can make a sustainable difference today, without buying a whole new vehicle, but by simply choosing to fuel up with ethanol at the pump. And not only are we benefiting the environment but also our economy, as ethanol is the most affordable renewable fuel option on the market today.”

The Iowa Corn 350, Powered by Ethanol, will take place Sunday, June 16, 2024, and be shown live on USA Network. This inaugural NASCAR Cup Series race at Iowa Speedway culminates a weekend that will also include a NASCAR Xfinity Series race Saturday, June 15 and ARCA Menards Series racing on Friday June 14.

“The Iowa Corn 350, Powered by Ethanol, will give us as farmers a platform across the country to share the benefits of ethanol with consumers and fans,” said Jolene Riessen, a farmer from Ida Grove and the Iowa Corn Growers Association President. “We know that a partnership like this is unique and will be impactful! With the audience NASCAR captures, Iowa Corn will be able to share the benefits of ethanol while also showcasing farmers from our great state.”

Grandstand tickets and camping for the Iowa Corn 350, Powered by Ethanol, are already sold out and only a select number of tickets remain for the NASCAR Xfinity Series and ARCA Menards Series races. Remaining tickets can be purchased by visiting www.iowaspeedway.com and fans looking to buy or sell reserved seats for the Iowa Corn 350, Powered by Ethanol, should visit SeatGeek, the Official Ticket Marketplace of NASCAR.

corn, Ethanol, Ethanol News, NASCAR, Racing

Clariant Closes sunliquid® Bioethanol Plant in Romania

Cindy Zimmerman

Global specialty chemical company Clariant is shutting down its sunliquid® bioethanol production plant in Podari, Romania, and downsizing related activities of its Biofuels & Derivatives division in Germany.

After developing the sunliquid® technology, Clariant had taken the decision in 2017 to establish its own commercial sunliquid® plant in Podari, which began producing bioethanol in the second quarter of 2022. In July 2023, Clariant started a strategic evaluation of the options for the plant after it became clear that the plant did not achieve Clariant’s targeted operational parameters.

Clariant management has concluded that, given continued losses, the economics of the plant in Podari cannot justify for Clariant to continue ramp up which would require significant additional capital expenditure. Following today’s announcement, activities within the business line Biofuels & Derivatives that supported the development and ramp-up of the plant will be downsized. Required capabilities to maintain the technology and to fulfill existing contractual obligations will be kept.

In June 2022, Clariant had announced the first commercial cellulosic ethanol had been produced at the sunliquid® plant and that they had signed a multi-year agreement with Shell to supply the product. It was reported to supply approximately 50,000 tons of second-generation biofuels derived from 250,000 tons of locally sourced agricultural residues, primarily in the form of straw.

advanced biofuels, biofuels, Cellulosic, Ethanol, Ethanol News

US Ethanol Exports Rebounded in September

Cindy Zimmerman

U.S. ethanol exports were up 18% in September to 120.5 million gallons (mg), thanks in part to global denatured fuel sales reaching an 18-month high, according to the latest analysis from the Renewable Fuels Association.

Canada was our largest destination for the 30th consecutive month with exports of 60.4 mg, accounting for half of total sales despite a 3% decrease from August. Exports to the United Kingdom climbed 1% to 13.6 mg while Colombia cut its U.S. imports by 23% to 8.3 mg. Virtually all remaining ethanol exports were distributed among ten markets, with the largest volumes landing in Oman (7.8 mg, up from zero and the largest volume in nearly 4 years), Mexico (5.5 mg, +167% to a 5-month high), South Korea (5.1 mg, up from essentially zero), the United Arab Emirates (4.8 mg, up from zero), the European Union (3.9 mg, -28% to a 9-month low), and Jamaica (3.2 mg, +149% to a 7-month high). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 1.04 billion gallons, trailing last year by 3% at this time.

Exports of dried distillers grains (DDGS) also rebounded in September, up 9% to 1.03 million metric tons (mt). Mexico remained the number one destination for the 15th consecutive month with exports of 201,607 mt, despite a 14% decrease from August.

DDGS exports revived in Vietnam (139,553 mt, +6% to a 12-month high), South Korea (110,316 mt, +32% to a 5-month high), and Canada (63,359 mt, +7% to a 3-month high). The other half of September exported DDGS was distributed to 32 markets, with larger volumes heading to Indonesia (61,961 mt), the United Kingdom (61,807 mt), and Colombia (40,299 mt). Year-to-date U.S. DDGS exports total 8.09 million mt, which lags 6% behind last year at this time despite an upward trendline.

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