RFA Finds E15 Sales Grow but Still Restricted

Cindy Zimmerman

A new analysis from the Renewable Fuels Association (RFA) finds sales of E15 (15% ethanol fuel) surged over the past three months compared to the same period last year, but warns that growth is at risk unless the government takes action to allow sales of the blend again next summer.

RFA examined data from the Minnesota Department of Commerce, which is the only monthly data set available that includes E15 volumes and prices, and found sales of E15 in the state were up 10 percent compared to the summer of 2022, hitting a monthly record in August as gasoline prices escalated.

The increase in sales was also facilitated by a combination of ethanol’s cost-competitiveness relative to petroleum-based gasoline blendstock, the incentive provided by credits used to demonstrate compliance with the federal Renewable Fuel Standard (referred to as Renewable Identification Numbers, or RINs), and the continued expansion of the number of retail stations offering E15. E15 was priced at an average discount of $0.16/gallon in Minnesota this summer (Figure 2). Retailer interest in offering E15 has been motivated by positive consumer response as well as favorable economics, including equipment cost sharing available through the Higher Blends Infrastructure Incentive Program administered by the USDA.

However, sales of E15 next summer are still in limbo because a 2021 D.C. Circuit Court ruling in favor of oil refiners overturned a 2019 rule allowing E15 to be sold year-round, and EPA has yet to implement regulations for a request by Midwest governors to opt out of the 1-pound vapor pressure waiver that is provided to E10 allowing year-round sales of E15.

Although the comment period on the proposal ended April 30, the agency inexplicably still has not issued a final rule. With the switch to summer 2024 gasoline specifications less than seven months away, EPA needs to publish the final rule approving the governors’ petition as soon as possible, so that supply chain participants can plan and coordinate adequately.

Still, the optimal solution for supply chain participants, consumers, and the environment is for Congress to enact legislation allowing permanent year-round sales of E15 nationwide. Nearly a year ago, a broad coalition of energy and agriculture organizations called on Congress to adopt such legislation. The restriction on E15 is an anachronism from a time when the usage of renewable fuels was not commonplace, and action is needed to ensure uninterrupted sales of this less-expensive, cleaner, lower-carbon fuel.

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

Ethanol Report with RFA Chairman Erik Huschitt

Cindy Zimmerman

The Renewable Fuels Association held its annual membership meeting in Des Moines last month and Erik Huschitt, CEO of Badger State Ethanol, was re-elected as chairman of the organization.

Huschitt, of Monroe, Wisc., has been with Badger State since January 2002 and currently serves as president of the Wisconsin BioFuels Association. He also has spent years on the board of the Wisconsin Agri-Business Association, which plays a vital role in Wisconsin’s feed and grain industries.

In this edition of The Ethanol Report, we talk with Huschitt about how he got involved in the ethanol industry and discuss some of the priority issues for RFA in the coming year.

Ethanol Report 10-12-23 25:30

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA

Yield10 Bioscience Gives Update on Herbicide Tolerant Camelina

Cindy Zimmerman

Yield10 Bioscience announced recent advancements toward enabling weed control for Camelina cultivation and supporting grower adoption of the crop for production of low-carbon intensity feedstock oil for the biofuel market.

“The Yield10 team is making significant progress toward our goal of launching elite herbicide tolerant Camelina for producing feedstock oil for the biofuels market,” said Kristi Snell, Ph.D., Chief Science Officer of Yield10 Bioscience. “We aim to facilitate the seamless integration of Camelina with current weed control and crop rotation practices of major crops in order to enable the planting of Camelina on large-scale acreage. This winter, we anticipate that our program will achieve another important milestone as we conduct field tests of stacked HT winter Camelina for the first time. We will also continue to execute on seed scale-up and regulatory activities in support of the planned commercial launch of our elite HT and stacked HT Camelina varieties.”

Yield10 is developing Camelina with tolerance to a broad leaf herbicide, which has been used safely in commercial crop production for over 25 years, in addition to developing a herbicide package incorporating tolerance to over-the-top application of broadleaf herbicide as well as tolerance to soil residual Group 2 herbicides, which are commonly used to control weeds in cereal crops.

aviation biofuels, biofuels, feedstocks

Honeywell and Granbio to Produce Sustainable Aviation Fuel

Cindy Zimmerman

Honeywell and Brazil’s GranBio Technologies are partnering to produce carbon neutral sustainable aviation fuel (SAF) from biomass residues at a planned demonstration plant in the U.S.

GranBio’s patented AVAP process converts biomass, including forest and agricultural residues, to pure low-cost, low-carbon-intensity sugars, lignin, and nanocellulose. The cellulosic sugars are converted to both SAF, through Honeywell’s ETJ technology, and biochemicals, through a separate process.

Using forest biomass-derived ethanol from the AVAP process, jet fuel produced from Honeywell’s ethanol to jet fuel process can reduce greenhouse gas (GHG) emissions to net zero on a total lifecycle basis, compared to petroleum-based jet fuel.

“The AVAP technology has great potential, depending on feedstock and plant configuration to allow carbon negative SAF with current life cycle analysis,” said Bernardo Gradin, GranBio CEO. “Plus, in addition to vast forest and agricultural residue available for feedstocks, there is an enormous potential to retrofit idle pulp and paper facilities in the U.S., revitalizing forestry value chains and rural manufacturing with great social, environmental, and economic impact.”

GranBio’s subsidiary AVAPCO was selected by the U.S. Department of Energy to receive an $80M grant to support the demonstration plant that will produce ~2 million gallons per year of SAF upon start-up in 2026.

Honeywell now offers solutions across a range of feedstocks to meet the rapidly growing demand for renewable fuels, including SAF. In addition to Honeywell UOP Ecofining™, Honeywell’s renewable fuels portfolio includes ethanol to jet technology and the recently announced Honeywell UOP eFining™, which converts green hydrogen and carbon dioxide into eFuels.

aviation biofuels, biofuels, SAF

Ethanol and DDGS Exports Drop in August

Cindy Zimmerman

U.S. ethanol exports dropped ten percent in August but still remained above 100 million gallons, according to the latest RFA Trade Monitor report. Ethanol exports totaled 102.3 million gallons in August, with Canada as our largest destination for the 29th consecutive month with exports of 62.4 mg, just 0.2% shy of last month’s record, accounting for nearly two-thirds of total August sales.

Exports to the United Kingdom pared back 19% to 13.5 mg. Colombia increased its U.S. imports by 151% to 10.7 mg, the largest monthly volume in almost 3 years. Shipments to the European Union dropped 24% to 5.4 mg, the lowest imports this year. Essentially all remaining ethanol exports were destined for Peru (4.5 mg), Mexico (2.1 mg), Singapore (2.0 mg), and Jamaica (1.3 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 920.5 mg, which lags 7% behind last year at this time.

The U.S. imported 10.5 mg of undenatured ethanol from Brazil and minimal gallons of denatured ethanol from Austria and France. This was the first month of substantive imports recorded in 2023.

Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, eased 5% to 947,326 metric tons (mt). A quarter of shipments landed in Mexico (234,674 mt, up 27% from July), our largest DDGS market for the 14th consecutive month. Exports to Vietnam lifted for the 7th consecutive month, up 6% to 131,232 mt. DDGS exports to Indonesia tightened 28% (87,015 mt), but South Korea sales rebounded 29% (83,425 mt), and Morocco purchased record volumes (59,367 mt). Rounding out our top ten customers in August were Canada (59,097 mt), New Zealand (30,799 mt), Colombia (28,887 mt), Taiwan (28,832 mt), and China (27,298 mt). Year-to-date U.S. DDGS exports total 7.06 million mt, which lags 9% behind last year at this time.

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

Washington Clean Fuel Standard Reports 1st Quarter Results

Cindy Zimmerman

The Washington Clean Fuel Standard recently released its first-quarter results for the number of credits generated by alternative low-carbon fuels, demonstrating the program’s commitment to reducing carbon emissions, supporting local economies, and fostering a unified market for biomass-based diesel on the West Coast.

During the first quarter of 2023, the program solidified its role in the race to meet carbon reduction goals, joining California and Oregon in promoting the use of increasingly higher blends of biomass-based diesel. Preliminary data shows that biodiesel and renewable diesel contributed around 22% of the credits indicating an approximate 1.2% blend rate. In comparison, when California first implemented its Low Carbon Fuel Standard, the state saw a blend rate of 0.4% for biodiesel and renewable diesel in the first year.

Jeff Earl, Director of State Governmental Affairs for Clean Fuels Alliance America, said they are impressed by the impact of the Washington Clean Fuel Standard and they look forward to watching the program build on its first-quarter success. “These results show that our fuels are the low-cost option for immediate decarbonization of the heavy-duty transportation sector in the state of Washington.”

Replicating California’s Low-Carbon Fuel Standard, Washington adopted their own Clean Fuel Standard in 2021 in an effort to reduce carbon intensity in the transportation sector, the state’s largest source of greenhouse gas emissions. Implemented on January 1, 2023, by the Washington Department of Ecology, the program provides credits for a range of low-carbon fuel alternatives that improve air quality and stimulate economic growth while strengthening the state’s position as a leader in sustainable energy practices.

Biodiesel, biofuels, Clean Fuels Alliance

Group Finds GOP Candidates Support Year Round E15

Cindy Zimmerman

An Iowa biofuels coalition reports unanimous support among all Republican presidential candidates for consumer access to year-round E15 and opposition to electric vehicles (EV) mandates.

“All the active candidates in Iowa agree that consumers deserve choices in how the vehicles they drive are powered,” said Biofuels Vision 2024 Executive Director Logan Shine. “Folks don’t want to be forced into an EV and they want more fuel options like E15 at the pump. Biofuels Vision will continue to engage candidates on additional issues important to biofuels and the over 50,000 Iowa jobs supported by biofuels production.”

Currently, all Republican candidates who are actively campaigning in Iowa have voiced support for a permanent, national year-round E15 fix allowing consumers choice at the pump. Additionally, all candidates have agreed they oppose laws and regulations that directly or indirectly mandate an EV-only future.

Biofuels Vision 2024 is a coalition of Iowa organizations and citizens who are committed to educating candidates in both parties about the importance of renewable fuels to Iowa and other Midwest states across the Midwest. The coalition is tracking candidates’ stances on eight issues vital to the future of biofuels.

Biodiesel, biofuels, Ethanol, politics

ACE Promotes HBIIP and E15 at NACS

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is rounding out its 2023 petroleum marketer trade show season this week in Atlanta at the National Association of Convenience Stores (NACS) show, the world’s largest annual gathering of convenience and fuel marketing professionals.

Ashley Borchert, Ron Lamberty, and Anna Carpenter staff the ACE booth at NACS

ACE Chief Marketing Officer Ron Lamberty says their presence at these shows provides answers to prospective higher-blend ethanol marketers’ questions about infrastructure compatibility, best practices for marketing E15 and E85, and USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) and its application process. “We’ve been helping retailers apply for and receive grants since HBIIP’s inception and we continue to promote the funding through our retailer website and paid media as the program evolves,” said Lamberty. “Working directly with HBIIP applicants also provides experiences we share with USDA following each application period, in an effort to reduce challenges for marketers and increase their participation in future rounds.”

After the latest slate of funding designated for USDA’s HBIIP under the Inflation Reduction Act was announced, ACE updated its retailer-focused website flexfuelforward.com to easily direct prospective E15 and flex fuels retailers to information about applying for and obtaining part of the $90 million in HBIIP grants now offered each calendar quarter for five quarters beginning July 1, 2023 and ending September 30, 2024.

Earlier this year, ACE traveled to other trade shows, including the Western Petroleum Marketers Association (WPMA) in Las Vegas, Midwest Petroleum and Convenience Tradeshow (M-PACT) in Indianapolis, Pacific Fuels and Convenience Summit (pfcs) in San Diego, and others. ACE’s presence at these shows provides answers to prospective higher-blend ethanol marketers’ questions about infrastructure compatibility, best practices for marketing E15 and E85, and USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) and its application process.

ACE, Ethanol, Retailers

Ethanol Remains Top Priority for Corn Growers

Cindy Zimmerman

Ethanol remains a top priority for the National Corn Growers Association, as Minnesota farmer Harold Wolle, takes over as president of the organization this week.

During a press conference Tuesday, Wolle talked about his goals over the next year, including support of the Next Generation Fuels Act in the House and Senate while making ethanol a go-to biofuel in the aviation sector. “First off, we need to get year-round E15 approved,” said Wolle. “Our marketers need to have the reassurance that they’re going to be able to market that year round. We’ve seen a tremendous increase in consumer demand for E15.”

Wolle sees sustainable aviation fuel (SAF) as a bit farther into the future but a big opportunity for corn. “If we work to get our carbon scores for our ethanol plants and our farms down we will have ethanol with a low enough carbon score that it will be possible to do ethanol-to-jet and I think that’s a phrase you’re going to hear a lot more in the future.”

“My theme as president is ‘shaping the Future,’ and nothing shapes the future like effective advocacy,” Wolle said. “And no other group does advocacy as well as our state corn grower groups and NCGA.”

Listen to Wolle’s press conference here:
New NCGA president Harold Wolle 20:32

Audio, corn, Ethanol, Ethanol News, NCGA

California Continues to Stall E15 Approval

Cindy Zimmerman

The Renewable Fuels Association is urging California to catch up with the rest of the country and finally allow sales of 15% ethanol fuel (E15).

In a letter to the California Air Resources Board, RFA President and CEO Geoff Cooper called on the agency to expeditiously approve the use of cleaner-burning, lower-carbon E15.

“California is woefully—and inexplicably—behind the rest of the nation when it comes to adopting a simple change to liquid fuel regulations that reduces both harmful tailpipe pollutants and GHG emissions from liquid-fueled light-duty vehicles,” Cooper wrote. “While CARB has taken some initial steps toward approval of E15, the process has been impaired by numerous delays, uncertain timelines, and a general lack of emphasis or prioritization from CARB leadership. All of the required testing and analysis on E15 has been completed and submitted to CARB; yet, the agency appears to be purposely ‘slow-walking’ the approval process.”

RFA noted that California is one of only two states in the country that still do not allow the use of E15, the other being Montana, and the state’s failure to approve the fuel has caused unnecessary increases in greenhouse gas emissions and tailpipe pollution linked to smog, as well as higher prices at the pump for California consumers.

Cooper also noted that CARB’s continued failure to allow the use of E15 clearly contradicts the scope and purpose of the waiver California has historically received from the Clean Air Act’s preemption provisions. California has historically received a waiver from the Clean Air Act’s preemption clause because the state’s air pollution regulations have been “at least as protective” as federal standards. RFA argued that “…CARB’s current gasoline regulations are less protective of public health and welfare than the federal standards that allow for E15 consumption in all light-duty vehicles built since 2001.”

Carbon, Ethanol, Ethanol News, Renewable Fuels Association, RFA