ACE Sets Record Straight on RFS Set Rule

Cindy Zimmerman

The American Coalition for Ethanol (ACE) this week set the record straight on the Renewable Fuel Standard (RFS) “Set” Rule, countering biased allegations made concerning the greenhouse gas emissions (GHG) impacts of corn starch ethanol.

ACE CEO Brian Jennings responded to comments by the Environmental Protection Agency (EPA) Science Advisory Board (SAB) workgroup in a letter to Administrator Regan in preparation for the SAB’s September 21-22 public meeting.

Although the SAB does not have statutory authority to promulgate EPA regulations, Jennings refutes the misleading claims made by the RFS workgroup centering on the degree to which corn starch ethanol reduces lifecycle GHG emissions compared to gasoline.

The SAB workgroup letter makes the outrageous claim that corn starch ethanol may not meet the necessary scientific requirement of having no more than 80 percent of the lifecycle GHG emissions of gasoline. In fact, corn starch ethanol greatly exceeds the necessary scientific requirements as demonstrated by the best available lifecycle science (via the GREET model), which shows corn starch ethanol is at least 50 percent cleaner than the GHG emissions of gasoline on average.

“There is no fact-based debate regarding the lifecycle GHG emissions of corn starch ethanol compared to gasoline,” Jennings stated in ACE’s response. “To the degree debate exists at all, it is not vigorous, unless one takes into consideration the vigor of misinformation campaigns orchestrated by various groups who are self-interested in their opposition to ethanol.”

Read ACE’s full comments.

ACE, Ethanol, Ethanol News

Ethanol Groups Urge Treasury Secretary To Use GREET Model

Cindy Zimmerman

The U.S. ethanol industry is continuing to urge the Biden Administration to use the most accurate model for transportation lifecycle assessment for sustainable aviation fuel (SAF).

Ethanol organizations including the Renewable Fuels Association, U.S. Grains Council, and Growth Energy sent a letter to Treasury Secretary Janet Yellen encouraging the use of updated scoring in the U.S. Department of Energy’s GREET model instead of carbon intensity scoring used in the CORSIA model for corn-based ethanol SAF.

“We strongly support the adoption of the DOE’s GREET model by the U.S. Treasury as the standard for carbon intensity scoring of conventional aviation fuels and SAF. The latest DOE GREET model relies on the most current information and highest-resolution data regarding the energy use, carbon emissions and potential land use impacts associated with the corn ethanol-based SAF process. By incorporating the DOE GREET model into its evaluation framework, the Treasury can unlock the full potential of agriculture to meet the growing demands of the global aviation industry while simultaneously reducing its carbon footprint.”

Secretary of Agriculture Tom Vilsack spoke in Washington DC this week about ethanol’s role in SAF and said that USDA is “working on the modeling to make sure that there’s a broad array of feedstocks that can qualify including ethanol….We’re spending our resources at USDA to make sure the GREET model is where it needs to be.”

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

Survey Shows Support for Low-Carbon Ethanol Action

Cindy Zimmerman

A new survey from the polling firm Morning Consult has found continued strong voter support for policies promoting the use of lower-cost, lower-carbon American-made ethanol.

In the latest results, registered voters also indicated robust support for specific legislation to allow the year-round sale of E15 (fuel containing 15 percent ethanol), as well as policy that would promote the production of more flex fuel vehicles capable of using the lower-cost E85 fuel blend.

“Voters across the country clearly want to see solutions that will help them save money at the pump while also improving the environment and public health. Consumers want greater access to lower-carbon, lower-cost renewable fuels,” said Renewable Fuels Association President and CEO Geoff Cooper. “This nationwide poll of more than 2,000 voters shows strong support for important legislative proposals that are currently pending in the House and Senate. We are calling on Congress to listen to their constituents and get this legislation over the goal line before the end of the year. Now is the time for action.”

The poll results found that 62 percent of those surveyed had a favorable opinion of ethanol, while only 17 percent had an unfavorable opinion; and 67 percent support the Renewable Fuel Standard, with 19 percent offering no opinion and 14 percent opposed. This is the highest percentage of support since RFA first began surveys with Morning Consult in 2016.

When it comes to higher blends, the poll found 67 percent support increasing the availability of the E15 blend, and 62 percent believe it is very or somewhat important to promote the production and sale of flex fuel vehicles (FFVs). Only 14 percent opposed the expansion of E15, and just one out of five respondents said it isn’t important to increase production of FFVs.

With specific legislation now pending before Congress, 63 percent support the Flex Fuel Fairness Act, which would encourage automakers to expand production of flex fuel vehicles that can run on E85, and 61 percent support the Consumer and Fuel Retailer Choice Act, which would allow E15 to permanently be sold nationwide on a year-round basis. Only 15 percent of voters oppose the legislation. Likewise, 61 percent support the Next Generation Fuels Act, which would establish a high-octane, low-carbon fuel standard, with just 14 percent expression opposition.

The online survey was conducted of 2,013 registered voters Sept. 6-9, and has a 2 percent margin of error. Click here for the topline results of this national tracking poll.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Clean Fuels Announces Floyd Vergara’s Retirement

Cindy Zimmerman

Clean Fuels Alliance America congratulates Floyd Vergara, Director of State Governmental Affairs, on his upcoming retirement at the end of this month.

Vergara has an accomplished career in the clean fuels industry with nearly four decades of experience. He currently manages the Clean Fuels West Coast office in Sacramento, California, and leads the team responsible for government affairs in all 50 states.

Prior to joining Clean Fuels in 2019, Vergara served as Chief and Assistant Chief in the Industrial Strategies Division and Research Division at the California Air Resources Board (CARB). During his career at CARB, he oversaw key climate change and air quality programs, including the Low Carbon Fuel Standard (LCFS). He continued that decarbonization strategy with Clean Fuels both as Director of State Regulatory Affairs and then Director of State Governmental Affairs.

Throughout Vergara’s tenure, the state affairs team helped establish and strengthen policies such as California’s LCFS, Oregon’s similar Clean Fuels Program and Washington’s new Clean Fuels Standard.

“I’m proud of and very thankful to Clean Fuels, its members and partner soy associations for what we’ve been able to accomplish with their support at the state level to further that narrative,” Vergara said. “I look forward to seeing even more success as I head into retirement after a long career in the low-carbon fuels space.”

Jeff Earl, Clean Fuels’ Director of State Regulatory Affairs, will assume the position of Director of State Governmental Affairs upon Vergara’s departure, based at the organization headquarters in Jefferson City, Missouri.

Biodiesel, Bioheat, Clean Fuels Alliance

Corn Growers Urge Treasury to Use GREET Model

Cindy Zimmerman

As news reports last week indicated the Biden administration will delay a critical decision regarding qualifications for Sustainable Aviation Fuel until December, corn grower leaders sent a letter urging adoption of the industry standard to determine which biofuels lower greenhouse gas emissions enough to qualify for tax credits under the Inflation Reduction Act.

The letter sent to Treasury Secretary Janet Yellen was signed by the president of the National Corn Growers Association and leaders of state grower groups across the country and calls on Treasury to use an emissions standard referred to as the GREET model, which was developed by the DOE, rather than a less comprehensive international standard preferred by some groups.

“GREET is the federal government’s most robust and updated model or methodology for transportation lifecycle assessment,” the letter says. “It is used globally to measure lifecycle greenhouse gas emissions from transportation, and the DOE has the best resources, expertise, and current ability within federal government agencies to assess lifecycle emissions accurately and scientifically.”

Unlike other models, GREET considers the full environmental picture, the corn growers noted.

“The GREET model accurately accounts for on-farm carbon reduction activities and feedstock yield increases and the improved agriculture production practices that farmers have adopted over the last twenty years,” the letter says. “This further solidifies GREET as the methodology Treasury and the IRS should use to determine tax credits for SAF under the IRA.”

aviation biofuels, corn, Ethanol, Ethanol News, NCGA

Rabobank Sees Bright Future in SAF

Cindy Zimmerman

Sustainable aviation fuels (SAF) are poised to take off in a big way on the wings of carrier commitments and changes to biofuel policy, according to a new report from Rabobank.

“The Future for Sustainable Aviation Fuels” forecasts SAF production capacity could potentially increase from 25 million gallons now to nearly 2.2 billion gallons by 2026. Beyond that, it could grow to as much as 34 billion gallons by 2050 in the U.S. alone.

Most of that will come from corn and soybeans, but other feedstocks will be needed to reach that full capacity according to Owen Wagner, Rabobank Senior Analyst for Grains & Oilseeds, who was at the recent Farm Progress Show. “We’re seeing more and more winter canola grown,” said Wagner. “Camelia was the oilseed of choice when the Air Force began its SAF program in 2011.”

Learn more in this interview.
2023 Farm Progress Show interview with Owen Wagner, Rabobank 8:25

Audio, aviation biofuels, canola, corn, Ethanol, Ethanol News, Farm Progress Show

RFA Welcomes Three New Associate Members

Cindy Zimmerman

The Renewable Fuels Association is proud to welcome three new associate members to the organization: Nexus PMG, Avalon International Corp., and Energy Integration Inc.

Nexus PMG focuses on providing world-class advisory services to infrastructure investors by delivering technical, operational and financial diligence on projects that reduce carbon intensity and enhance resource efficiency.

Avalon International Corp. is a clean-energy project developer focusing on CO2 sequestration from industrial emitters. It is currently developing clean ethanol and H2 production projects across the USA.

Energy Integration Inc. was created to revolutionize biofuel production with hyper-efficient, electrified, energy-recovery systems that reduce energy usage and carbon intensity while saving facilities money. Its designs can retrofit existing facilities with minimal disruption to operations, and are already commercially proven in the field, including at Europe’s largest biorefinery.

“Ethanol’s critical role in the energy transition continues to attract new companies to RFA’s membership. Innovative businesses and cutting-edge technology providers from across the bioenergy industry continue to rally around our members’ pledge to achieve net zero carbon emissions by 2050,” said RFA President and CEO Geoff Cooper.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

ACE Carbon Capture Panel

Cindy Zimmerman

The final panel at the recent American Coalition for Ethanol (ACE) conference dealt with carbon capture and storage, and everything from permitting, construction, and operation of pipeline projects to CO2 utilization opportunities for ethanol producers.

ACE board president Dave Sovereign, Golden Grain Energy, moderated “The Journey to Capture, Store, and Utilize Carbon” which featured Britta Bergland, Senior Analyst for Merjent, Inc.; Aaron Eldridge, South Dakota Project Manager, Summit Carbon Solutions; and Ashkan Shoja-Nia, VP of Strategy and Business Development, StormFisher Hydrogen. Listen to their remarks below.

2023 ACE Panel Britta Bergland, Merjent 14:18

2023 ACE Panel Aaron Eldridge, Summit Carbon Solutions 15:53

2023 ACE Panel Ashkan Shoja-Nia, StormFisher Hydrogen 15:49

ACE, ACE Ethanol Conference, Audio, Carbon, carbon capture, Ethanol

EcoEngineers Helping Ethanol Lower Carbon Intensity

Cindy Zimmerman

Lowering the carbon intensity of corn ethanol is the number one focus for the industry right now, and EcoEngineers is helping producers do what it takes.

“If they can incentivize or enhance a climate-smart ag production process, or some way to take out energy or reduce carbon emissions, sequester carbon, all of those components to lower the CI…it helps all the way around,” said Mark Heckman, EcoEngineers Strategic Development Director. Heckman was at the recent American Coalition for Ethanol (ACE) conference talking with ethanol producers about solutions that can reduce their plant’s carbon footprint.

Learn more about EcoEngineers in this interview.
2023 ACE interview Mark Heckman, EcoEngineers 4:24

2023 ACE Conference photo album

ACE, ACE Ethanol Conference, Audio, Carbon, Ethanol

Ethanol and DDGS Exports Gain Momentum

Cindy Zimmerman

According to the latest Renewable Fuels Association trade monitor, U.S. ethanol exports increased one percent in July to a three month high of 113.4 million gallons (mg).

Canada was our largest destination for the 28th consecutive month with a whopping 55% of global sales. A record 62.6 mg (bolstered by 58 mg in denatured ethanol)—a 23% month-over-month leap—was the fourth-largest single month U.S. exports purchased by any country. Essentially all remaining gallons were distributed to nine markets, including the United Kingdom (up 23% to 16.7 mg), South Korea (up 5% to 10.7 mg), the European Union (down 55% to 7.1 mg), Colombia (down 22% to 4.3 mg), and Mexico (down 6% to 3.9 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 818.3 mg.

Exports of dried distillers grains (DDGS) totaled 993,018 metric tons (mt) in July, up five percent over June and the largest monthly exports in a year.

While imports softened 2% to 185,136 mt, Mexico held firmly for the 13th consecutive month as the largest U.S. DDGS market. Exports swung higher in Vietnam (up 11% to 124,184 mt), Indonesia (up 31% to 120,839 mt for a record high), and Turkey (roughly double at 89,859 mt) but scaled back in the European Union (down 9% to 68,879 mt), South Korea (down 26% to 64,888 mt, the lowest monthly volume in more than 3 years), and Canada (down 16% to 59,670 mt). Rounding out our top ten customers in July were Japan (56,371 mt), Morocco (30,041 mt), and Taiwan (24,526 mt). Year-to-date U.S. DDGS exports total 6.11 million mt, which is 9% behind last year at this time.

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