Senators Launch Sustainable Aviation Caucus

Cindy Zimmerman

U.S. Senators Jerry Moran (R-KS), Tammy Duckworth (D-IL), John Boozman (R-AR) and Amy Klobuchar (D-MN) have launched the Senate Sustainable Aviation Caucus to promote the longevity of the aviation industry and the renewable fuels industry.

“As the aviation industry strives for lower emissions and cleaner energy sources, the development and utilization of sustainable aviation fuel will be a critical element,” said Sen. Moran. “To help spur development, I am launching the Senate Sustainable Aviation Caucus. The caucus will work together to find ways to promote technologically innovative solutions to create a sustainable aviation industry and increase our nation’s competitiveness in the domestic production of sustainable aviation fuel.”

Alison Graab, Executive Director of The SAF Coalition, thanked the senators for launching the caucus. “The formation of the caucus is a positive step towards strengthening national energy security, driving economic growth, and generating quality jobs across the country through the development and deployment of SAF. We look forward to working with the caucus and other SAF advocates to enhance incentives that expand SAF production and support our nation’s energy needs.”

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF

USGC Helping Canada Move to Higher Ethanol Blends

Cindy Zimmerman

Amin Asadollahi, Natural Resources Canada; Christopher Malone, Indigo Ag: Stephanie Larson, USGC; and Helena Jette, Indiana Corn and Soybean

The U.S. Grains Council (USGC) held meetings with stakeholders in Ottawa, Ontario and Quebec City, Quebec this week to discuss how the U.S. industry can further support Canada’s ongoing transition to higher ethanol blending rates.

While there is a nationwide mandate to blend gasoline with five percent ethanol (E5) in Canada, many provinces voluntarily set higher blend rates within their jurisdictions. Ontario and Quebec will both require E11 and E12 blends, respectively, by next year and the Canadian government recently announced plans to develop sustainable aviation fuel (SAF) facilities, creating significant additional demand for U.S. producers to meet.

“Canada is the top export market for U.S. ethanol, purchasing 590 million gallons during the 2022/2023 marketing year (MY) and already surpassing that figure during the first 11 months of MY 2023/2024 (598 million gallons) as U.S. producers benefit from a near 100 percent market share of ethanol imports in Canada. And there is still room to grow as the country continues its commitment to reduce carbon emissions,” said USGC Regional Ethanol Manager Stephanie Larson.

Joining Larson on the mission were Helena Jette, director of market development and biofuels for the Indiana Corn Growers Association, Indiana Corn Marketing Council and Indiana Soybean Alliance, and Christopher Malone, vice president of market development for Indigo Ag.

“Canada has the potential to become the first billion-gallon market for U.S. ethanol as the country continues to develop progressive policies in the transportation sector, and maintaining connections with key Canadian policymakers and stakeholders through these meetings will be crucial to maintaining the privileged position enjoyed by U.S. ethanol in the Canadian market,” Larson said.

Ethanol, Ethanol News, Exports, USGC

RFA Elects New Leadership

Cindy Zimmerman

The Renewable Fuels Association elected new officers and board members at its annual membership meeting this week in Milwaukee.

Jeff Oestmann, CEO of Aztalan Bio, near Johnson Creek, Wisc., was elected chair. Oestmann’s long career in ethanol and agriculture includes leadership roles at Granite Falls Energy, Syngenta, and East Kansas Agri-Energy.

“It’s a true honor to step into the role of chairman of the Renewable Fuels Association during such an exciting and transformative time for our industry,” Oestmann said. “Technology is unlocking new ways to harness the power of grains, enabling us to make strides toward greater sustainability. But as we push the boundaries of what renewable fuels can accomplish, we must also stand together to face the challenges ahead. The strength of our community has never been more important. Our industry is navigating new economic, regulatory, and environmental terrain, and by working together, we can meet these challenges head-on.”

Others newly elected to RFA board of directors leadership are Derek Peine, CEO of Western Plains Energy in Oakley, Kan., as vice chairman; Tim Winters, president and CEO of Western New York Energy, as Board Secretary; and David Zimmerman, CEO of Big River Resources, as Board Treasurer.

Elected to leadership of the Renewable Fuels Foundation for 2025 were Chairman Neal Kemmet, Ace Ethanol; Vice Chairman Wayne Garrett, Chief Ethanol Fuels; and Treasurer Eric Baukol, Redfield Energy. The foundation is dedicated to meeting the education, research and strategic planning needs of the U.S. fuel ethanol industry.

Ethanol, Ethanol News, Renewable Fuels Association, RFS

Broad Coalition Urges President to Avert Port Strike

Cindy Zimmerman

A broad coalition of organizations representing agriculture, biofuels, food and transportation is asking the White House to avoid a potential port operations disruption that could negatively impact the food supply chain.

The labor agreement between the International Longshoremen’s Association and the United States Maritime Alliance expires on September 30th and the groups say that if they are unable to come to an agreement, the impact on the ag supply chain will not only slow or shutdown operations, but also potentially lower farmgate prices. “To prevent a disruption to port operations along the East and Gulf Coasts, we request for your administration to act before a lockout or strike occurs to prevent damage to U.S. agriculture and the economy,” the groups wrote in a letter to President Biden. “Approximately 40 percent of U.S. containerized agricultural exports move through East and Gulf Coast ports, and we believe the time has come for the U.S. government to intervene and ensure port operations do not stop.”

Over 55 organizations signed on to the letter, including the Renewable Fuels Association. A potential strike would impact three dozen ports, including New York and New Jersey, Houston and Savannah, Georgia.

biofuels, Ethanol, Ethanol News, RFA

Congress Proposes Extension of Clean Fuels Tax Credit

Cindy Zimmerman

Bipartisan and bicameral legislation has been introduced in Congress that would require the Treasury Department to restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks and extending the tax credit to make it a full ten-year credit.

Senators Roger Marshall (R-KS) and Sherrod Brown (D-OH)introduced the Farmer First Fuel Incentives Act in the Senate with companion legislation introduced by Representatives Tracy Mann (R-KS) and Marcy Kaptur (D-OH) in the House of Representatives. Senator Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Deb Fischer (R-NE), Tammy Baldwin (D-WI), and Tina Smith (D-MN) also cosponsored the legislation.

The 10-year credit will give the ethanol industry the time and financial incentive to build up the infrastructure needed for the U.S. to be less reliant on foreign fuel, open new markets for farmers, and increase ethanol production across the Midwest. However, we recently learned that 45Z has a glaring flaw that needs to be fixed for farmers wanting to sell feedstocks to the biodiesel and renewable diesel industry. If 45Z goes into effect as is, taxpayers will be massively subsidizing Chinese used cooking oil and would all but eliminate the use of homegrown soy or corn oil in renewable diesel.The 10-year credit will give the ethanol industry the time and financial incentive to build up the infrastructure needed for the U.S. to be less reliant on foreign fuel, open new markets for farmers, and increase ethanol production across the Midwest. However, we recently learned that 45Z has a glaring flaw that needs to be fixed for farmers wanting to sell feedstocks to the biodiesel and renewable diesel industry. If 45Z goes into effect as is, taxpayers will be massively subsidizing Chinese used cooking oil and would all but eliminate the use of homegrown soy or corn oil in renewable diesel.

Biodiesel, biofuels, Carbon, Ethanol, Ethanol News

U.S. House Moves Against EV Mandate

Cindy Zimmerman

The U.S. House of Representatives voted Friday under a Congressional Review Act (CRA) resolution EPA’s controversial tailpipe emissions standards focused on mandating electric vehicles by 215 to 191, with eight Democrats joining 207 Republicans in support.

The resolution was brought by Representative John James (R-MI). “I’ve always said, if you want an EV, get an EV. But allowing the Biden-Harris Administration to continue stifling consumer choice will only harm the American people,” said James. “The Senate must take up this measure immediately.”

Speaker Mike Johnson said the rule is detrimental to American consumers. “By setting emission standards that only electric vehicles can meet, this rule effectively picks winners and losers in the marketplace. The radical agenda of the Biden-Harris Administration continues to overregulate our free market, and this latest move is yet another attempt to dictate what kinds of vehicles Americans can buy,” Speaker Johnson said.

The White House said President Joe Biden would veto the measure if it is approved by the U.S. Senate.

The National Corn Growers Association (NCGA) applauded the move. “The members of Congress who passed this legislation understand well that there are many different tools that we can use to reduce greenhouse gas emissions,” said Minnesota farmer and NCGA President Harold Wolle. “While it could take years to realize the potential that EVs offer, ethanol is an effective part of a portfolio of options for addressing climate concerns, and it is fully available for use today.”

NCGA has expressed concerns that the plan will have long-lasting negative implications for the rural economy because it ignores the benefits of ethanol and is litigating in federal court against the rule.

biofuels, corn, Environment, EPA, Ethanol, Ethanol News, NCGA

Iowa Biodiesel Producers Seek 45Z Safe Harbor Guidance

Cindy Zimmerman

Iowa biodiesel producers are urging the U.S. Department of Treasury to act immediately in issuing safe harbor guidance for the 45Z Clean Fuel Production Credit.

“Simply put, without immediate safe harbor guidance, the entire biodiesel supply chain could grind to a halt, resulting in lost farm income, laid off workers, unrealized carbon reductions, higher prices for consumers, and greater energy imports,” producers said in the letter submitted to Treasury last week.

While the department is working to finalize the 45Z rules, most observers believe they will not be completed until well after January 1, 2025 when the tax credit is scheduled to take effect. The industry claims lack of safe harbor guidance is impacting the biodiesel supply chain today and without final rules or a safe harbor before January 1, the entire biodiesel supply chain is left in limbo as the current biodiesel blenders tax credit expires at the end of this year.

“Without knowing the value of the new credit, feedstock suppliers don’t know how to price their products. Biodiesel producers don’t know how much to pay for feedstock or how to price their biodiesel. And retailers don’t know how much to pay for biodiesel or how to set the price for consumers… We urge you to pre-empt the disastrous implications of dramatically reducing biodiesel production by implementing a safe harbor until the 45Z Clean Fuel Production Credit rules are final,” stated the letter.

The letter comes after a meeting last week between Midwest congressional staff and Treasury officials on the new production credit, including the possibility of safe harbor guidance where the department provided no timeline for finalizing the rule and did not commit to providing an interim safe harbor.

Biodiesel, Iowa RFA

RFA Reports Membership Growth

Cindy Zimmerman

The Renewable Fuels Association had a growth spurt this week, adding three new associate members to its rolls. The new companies are Nataqua, iRely, and Antora Energy

Nataqua is an early-stage company transforming CO₂ into ethanol with innovative technology that utilizes CO₂ gas, liquid water, and affordable industrial electricity. Their efficient process converts CO₂ exhaust streams directly into ethanol, which is then integrated into pre-distillation mixtures to enhance ethanol concentrations and reduce distillation costs.

iRely‘s agribusiness software offers a comprehensive, integrated platform tailored to the needs of agricultural businesses. It supports various operations, including grain origination, feed management, crop inputs, agronomy, and farm retail. The software streamlines processes like contract management, inventory control, risk management, and traceability, all while providing real-time data and analytics.

Antora Energy delivers zero-emissions industrial heat to predictably and profitably decarbonize industrial operations. Factory-built in the United States, Antora’s thermal batteries convert low-cost, intermittent renewable electricity into reliable process heat, substantially lowering CI scores and future-proofing energy costs. Antora is actively working with ethanol facilities across the U.S. to decarbonize their process heat and electricity using local wind power.

RFA President and CEO Geoff Cooper welcomed the new members and says they reflect RFA’s ongoing commitment to championing innovative and sustainable energy solutions while driving the advancement of the renewable fuels sector.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

GROWMARK Purchases Stake in Big River Resources

Cindy Zimmerman

Farmer cooperative GROWMARK announced this week an investment in West Burlington, Iowa, ethanol plant Big River Resources LLC.

GROWMARK CEO Mark Orr says GROWMARK believes ethanol will continue to be a strong driver of the agricultural industry with the potential for new and exciting innovative uses such as a feedstock for Sustainable Aviation Fuel.

“Our investment in Big River Resources aligns with GROWMARK’s strategic goals to diversify and strengthen our operations. This investment will enable us to capture new revenue streams and provide added value to our farmer members,” he said.

“We are pleased to welcome GROWMARK to the Big River team as a new investor. GROWMARK’s cooperative nature and focus of returning value to its member-owners and farmer customers aligns strongly with our goals,” said David Zimmerman, CEO of Big River Resources. “We are committed to the enhancement of local communities through continuing value-added corn processing as well as maximizing the growing carbon economy for our shareholders and producer-members. GROWMARK will be a strong partner for us in realizing these goals.”

In addition to being the sixth largest ethanol producer in the U.S., Big River’s operational footprint in Illinois, Wisconsin, and Iowa aligns with the GROWMARK System, providing greater access to the upstream value added to the corn produced by GROWMARK’s farmer customers.

Ethanol, Ethanol News, GROWMARK

Ethanol Report on Election Issues

Cindy Zimmerman

No matter what happens in November, there will be a new president in January and a new administration that could be radically different than the current one, and that could mean a big difference in the outcome of policy issues for the ethanol industry.

In this edition of the Ethanol Report, Renewable Fuels Association President and CEO Geoff Cooper discusses with reporters some of the key issues that could carry over into a new administration, including 45Z and other tax credit programs under the Inflation Reduction Act, EPA’s tailpipe standards, year-round E15, the Renewable Fuel Standard, and trade.

Ethanol Report 9-18-24 21:36

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