RFA Continues Higher Blend Support for Retailers

Cindy Zimmerman

The Renewable Fuels Association (RFA) is hard at work helping retailers apply for the most recent round of funding under the Higher Blends Infrastructure Incentive Program (HBIIP)

RFA has received inquiries from more than 60 companies interested in applying for the $450 million in matching grants and has led five webinars in conjunction with fuel marketing groups in Indiana, Iowa, Missouri, Wisconsin, and Minnesota, and with the strong support of the National Corn Growers Association.

“This is the most exciting funding round yet,” said RFA Director of Market Development Cassie Mullen. “We anticipate greater interest than ever before, thanks to increased limit levels and additional incentives focused on smaller businesses. Over the last three rounds, we have had a perfect success rate in submitting these applications, and we are committed to keeping that streak going. The journey to a successful application is not an easy one; it takes a lot of work and commitment.”

Mullen says guidelines for the HBIIP applications have changed some in this new funding round. For instance, interested parties have five 90-day rounds to process applications (through Sept. 30, 2024) as opposed to the customary single 90-day timetable. Additionally, there are new incentives for smaller businesses, as well as revised cap amounts.

To streamline the application process and better assist interested parties, RFA launched HBIIP University, a resource that provides applicants a secure platform to engage with our staff and utilize in-depth resources including step-by-step video tutorials, interactive documents, and verified example documents to ensure a successful submission.

Since 2020, via HBIIP and state programs, RFA has helped more than 85 companies secure grants in 21 states for almost $68 million in funding, matched by over $217 million in retailer funding for almost $285 million towards higher blend infrastructure. For more information, fuel retailers and other interested parties can reach Mullen at (832) 415-7882 or cmullen@ethanolrfa.org.

Ethanol, Ethanol News, Renewable Fuels Association, Retailers, RFA

Secretary Vilsack at #FPS23

Cindy Zimmerman

USDA Secretary Tom Vilsack stopped at the Farm Progress Show in Decatur, Illinois Wednesday to award $266 million in loans and grants for agriculture producers and rural small businesses to make investments in renewable energy and energy efficiency improvements, made possible in part by the Inflation Reduction Act (IRA).

Vilsack used a white board to talk about funding under the IRA Climate Smart Agriculture initiative that is being used to help increase farm income while helping the environment. “There are 141 projects, we’re putting three billion dollars into those projects across every major commodity, every state in the country,” said Vilsack. “Farmers are going to get paid to adopt climate smart agricultural practices and new markets are going to be created.”

Listen to Vilsack’s remarks here:
2023 Farm Progress Show - Secretary Tom Vilsack 12:52

Vilsack met briefly with reporters and said the administration “hasn’t forgotten about biofuels, it hasn’t forgotten about ethanol. The administration understands it.”

The secretary went on to note what the Biden administration has done for the biofuels industry. “What administration has made E-15 year-round available? What administration has put billions of dollars into the development of sustainable aviation fuel?…What administration ended the rather liberal use of waivers to allow petroleum companies to basically skirt their responsibilities under the RFS…The answer to every one of those questions is the Biden administration.”

2023 Farm Progress Show Photo Album

Audio, biofuels, Ethanol, Ethanol News, Farm Progress Show

Outlook for Ethanol Exports

Cindy Zimmerman

Rick Schwark, Absolute Energy, and Mackenzie Boubin, USGC, at ACE Confernce

Mackenzie Boubin, Director of Global Ethanol Export Development for the U.S. Grains Council, gave an update on the outlook for ethanol exports at the recent American Coalition for Ethanol (ACE) annual conference in Minneapolis.

“The United States represents over half of the ethanol production in the world,” said Boubin. “For our marketing year, we’re over one billion gallons. So we take about ten percent every year of the U.S. ethanol industry and we send it overseas.”

This marketing year, Boubin says, exports are down about 200 million gallons from last year, mainly due to Brazil and China. “Despite those two markets, the fact we’re diversifying more than ever, nearly 100 countries are taking our product, shows that we really do have that competitive advantage,” she said.

Boubin talks about the most important countries right now for U.S. ethanol in her presentation.
2023 ACE - Mackenzie Boubin, USGC 34:01

2023 ACE Conference photo album

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News, Exports, USGC

Ethanol Expected to Save Labor Day Travelers $155 Million

Cindy Zimmerman

As temperatures have heated up this summer, so have gasoline prices, with regular unleaded gasoline up to $3.87 per gallon during the week ending August 21, the highest price in nearly a year and well above the long-term average. However, the good news is that ethanol is helping to keep gas prices lower than they would be without it for American families money as they hit the road for Labor Day, according to Renewable Fuels Association chief economist Scott Richman who did the math.

Almost all finished motor gasoline sold in the U.S. contains 10% ethanol, a blend referred to as E10. In June and July, E10 cost $0.40 less per gallon at wholesale than regular unleaded gasoline without ethanol. Assuming a similar discount in August, which is conservative since ethanol prices have declined while gasoline prices have risen, the presence of ethanol will have directly reduced Americans’ spending on gasoline by $14 billion this summer, equivalent to $108 per household, according to an analysis by the Renewable Fuels Association. For Labor Day weekend alone, ethanol is expected to save travelers $155 million on gasoline purchases.

The savings are even greater for E15, a 15% ethanol blend that is approved for more than 95% of the cars and trucks on the road today. In order to “provide Americans with relief at the pump,” the Biden administration has issued a series of waivers allowing E15 to be sold in conventional gasoline areas this summer. As noted by the U.S. Energy Information Administration, similar E15 waivers last summer helped keep a lid on pump prices. Given the compelling economics, RFA estimated that U.S. sales of E15 surged 26% to a record 1.02 billion gallons in 2022.

The moral of the story is to use higher blends of ethanol whenever driving to save more money at the pump. In addition, there’s one more week of the RFA Days of Summer Free Fuel Contest for the chance to win $250 in free fuel.

There are two ways to enter and win:
Submit prices to E85prices.com. Register for an account or log in at E85prices.com or use the E85prices.com mobile app. Submit retail station prices for higher blends of ethanol like E15 and E85.
Submit pictures of higher blend prices on Twitter. Pictures can be of the fuel dispenser or price sign and should include, at a minimum, regular unleaded (E10) and E15 and/or E85. Include station name, city, and state. Tag @EthanolRFA and include the hashtags: #ethanol #E15 #E85 and #fuelprices (unless those words are already mentioned).

Contestants are entered into a random weekly drawing for a pre-paid credit card to be used for fuel purchases and the final drawing will be next week.

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

Retailers Show Vision in Blazing Trails for Ethanol

Cindy Zimmerman

Ron Lamberty moderates panel with retailers Bruce Vollan and Glenn Badenhop

More and more retailers are taking the plunge and offering higher ethanol blends around the country, but while it has taken some time to get the larger retail chains to make the move, blazing the trail before them were smaller marketers with vision.

Bruce Vollan, owner of Vollan Oil Company in Baltic, South Dakota, and Glenn Badenhop who owns American Freedom Energy in Liberty Center, Ohio, are two visionary retailers who talked about their struggles and successes during a panel at the American Coalition for Ethanol Conference last week in Minneapolis on “E15 & Flex Fuel Roadmap: Small Retailers Clearing Roadblocks and Blazing Trails for Ethanol Availability,”

ACE Chief Marketing Officer Ron Lamberty presented the Paul Dana Marketing Vision Award to Badenhop prior to the retailer panel during Friday morning’s general session of the conference. Badenhop received the award, named after Indy Racing car driver Paul Dana, for his leadership in promoting the expansion of higher blends of ethanol to consumers, as well as overcoming many trials as a station owner. Being one of the first stations in the U.S. to offer E15, while also being one of the most recent to offer E15, Badenhop spent the last 18 months battling his oil company supplier and clearing their red tape to sell E15, alongside the other gasoline grades under the canopy, which he couldn’t do when he initially began offering the product.

“It’s been a long road making the vision I had twelve years ago become a reality, but I kept working at it and this award makes it worthwhile,” Badenhop said. “There is nobody else in my area offering higher blends, so I feel like I have a leg-up on the competition, and this award proves higher blends do work and are accepted by the consumer.”

Vollan received the same award at the ACE Conference in 2013 for his efforts.

Listen to the panel conversation and an interview with Lamberty about ACE’s work with retailers.
2023 ACE - Ron Lamberty, ACE, interview 6:58
2023 ACE Retailer Panel 52:00

2023 ACE Conference photo album

ACE, ACE Ethanol Conference, Audio, E15, E85, Ethanol, Ethanol News, Retailers

Ethanol Report from Farm Progress Show

Cindy Zimmerman

The Renewable Fuels Association was on the ground in Decatur, Illinois this week at the 70th annual Farm Progress Show where all the cool agricultural kids go at the end of summer.

In this edition of The Ethanol Report podcast, we hear from RFA Vice President of Industry Relations Robert White about the flex fuel EV he has been driving around all summer, RFA President and CEO Geoff Cooper about the need for fair treatment of ethanol as a feedstock for SAF, and RFA Policy Counsel and Director, Government Affairs, Jared Mullendore, about why they take the time to attend Farm Progress Show.

Ethanol Report 8-31-23 16:44

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.

Choose an option to subscribe

Audio, aviation biofuels, Ethanol, Ethanol News, Ethanol Report, Farm Progress Show, feedstocks, Renewable Fuels Association, RFA

ACE Honors South Dakota Farmer Ron Alverson

Cindy Zimmerman

The person who received the American Coalition for Ethanol (ACE) Merle Anderson Award this year is one of the most humble geniuses you will ever meet.

Ron Alverson is a South Dakota farmer who helped found Dakota Ethanol and is considered to be the “carbon guru” of the ethanol industry. He was also a good friend of the man ACE’s most prestigious award is named after – the group’s “founding father” and first president. The Merle Anderson Award is presented annually to recognize an individual who has made distinguished and significant contributions to the advancement of the U.S. ethanol industry.

Alverson was a founding member (1987) and past president of SD Corn, served on the National Corn Growers Association board of directors, and is past president of the ACE board of directors. His leadership and generous enthusiasm for sharing knowledge about the vital role corn farming and ethanol play in helping reduce lifecycle greenhouse gas (GHG) emissions is unparalleled. He also inspires everyone in the corn and ethanol industries to care about the importance and economic value of “counting carbon” through his tireless advocacy and invention of educational tools, such as the “ACE” Carbon Intensity Calculators https://ethanol.org/calculate-ci/.

Listen to an interview with Ron below:
2023 ACE interview Ron Alverson, Dakota Ethanol 4:54

At the ACE Conference in Minneapolis last week, Alverson also shared some of his knowledge during a panel session on “Cultivating Progress: Climate-Smart Farming for Carbon Markets.” ACE’s Regional Conservation Partnership Program (RCPP) is working to validate the benefits farm-level practices have in reducing corn ethanol’s carbon footprint, enabling farmers and ethanol producers to benefit from clean fuel markets. Listen to his remarks and those of his fellow panelists involved with the project below.

Jonathon Lehman, Founder, Cultivating Conservation
2023 ACE Panel Jonathon Lehman, Founder, Cultivating Conservation 13:52
Brennan Lewis, Research Associate, South Dakota State University
2023 ACE Panel Brennan Lewis, South Dakota State University 12:29
Ron Alverson, ACE Board Member, Dakota Ethanol
2023 ACE Panel Ron Alverson, Dakota Ethanol 8:14

2023 ACE Conference photo album

ACE, ACE Ethanol Conference, Audio, Carbon, Ethanol, Ethanol News, Farming

Syngenta Seeds and Sustainable Oils to Sell Camelina Seed

Cindy Zimmerman

Syngenta Seeds was pleased to make a big announcement the first day of Farm Progress Show Tuesday about a new agreement with Sustainable Oils, Inc. to sell Camelina sativa (camelina) seed – an ultra-low carbon oilseed crop that can be used as feedstock for sustainable aviation fuel and renewable fuels, and an ingredient for sustainable animal feed.

The collaboration reflects Syngenta’s strong commitment to enabling farmers to economically adopt regenerative practices around the world. Camelina can be planted on fallow land or land left idle between crop cycles. It is valued for its low water usage, quick maturity, and resilient yields. Camelina protects land like a cover crop providing a range of environmental benefits, including soil health and reduced greenhouse gas emissions.

“The collaboration of Syngenta Seeds and Sustainable Oils to sell camelina seed for use in sustainable aviation fuel, renewable diesel, and animal feed production is a significant step forward in promoting regenerative agriculture and renewable energy,” said Eric Boeck, Regional Director North America for Syngenta Seeds. “By supporting farmers and offering a sustainable source of fuel and animal feed, this partnership represents a win-win for producers, the environment, and the rural economy. It embodies our commitment to sustainability and our drive to bring innovative solutions to market.”

2023 Farm Progress Show interview with Eric Boeck, Syngenta Seeds 4:46

“We are very excited to partner with Syngenta Seeds on this collaboration to expand camelina’s growth in the U.S.,” Sustainable Oils President Mike Karst said. “Camelina represents a key feedstock for the production of renewable fuels and sustainable aviation fuel. It is a remarkable crop that protects like a cover crop and pays like a cash crop. We’re proud to be working with Syngenta to bring this opportunity to more farmers, improving our soil health and carbon storage while strengthening our nation’s domestic energy production in the process.”

2023 Farm Progress Show interview with Mike Karst, Sustainable Oils 5:11

Camelina seed will be sold through Syngenta’s AgriPro® dealer network in a vertical marketing model. Farmers who buy camelina seed will have a harvest purchase contract. There is no marketing risk for the farmer since there is already an integrated value chain model.

2023 Farm Progress Show Photo Album

Audio, aviation biofuels, biofuels, feedstocks, SAF, Syngenta

RFA Seeks Fair Treatment for Ethanol as SAF Feedstock

Cindy Zimmerman

The Renewable Fuels Association is making a major push this week to see American-made, lower-carbon ethanol supported as a feedstock for sustainable aviation fuel.

Agriculture Secretary Tom Vilsack’s visits this week to the Minnesota State Fair and the Farm Progress Show in Illinois provide the backdrop for RFA’s efforts, starting with a full-page advertisement in Monday’s St. Paul Pioneer Press welcoming him to “Ethanol Country.”

“Just last month, President Biden said: ‘Mark my words: In the next 20 years, farmers are going to be providing 95% of all the sustainable airline fuel,’” the ad states. “We agree. U.S. farmers and ethanol producers are up to the challenge … and we’re ready to deliver low-carbon aviation fuel. But to ensure sustainable aviation fuels really take off, we’ll need your continued help and support. Government standards for sustainable aviation fuel must be guided by sound science and current data, not outdated European schemes that disqualify America’s farmers from fulfilling the President’s vision.”

Jared Mullendore, Geoff Cooper, and Robert White with RFA at FPS

“Our efforts have been focused on, let’s use the best available science, let’s use the most current and scientifically robust modeling tools, and specifically we’re talking about the Department of Energy’s GREET model, to serve as the basis for evaluating different fuels when it comes to their eligibility for the SAF tax credit,” said RFA President and CEO Geoff Cooper at the Farm Progress Show on Tuesday where RFA’s 2022 Ford Escape Plug-in Hybrid Electric Vehicle (PHEV) is on display to demonstrate that ethanol (E85) and electricity can jointly power vehicles.

Cooper talks about why it is so important to get the modeling for SAF right in this interview.
2023 Farm Progress Show interview with RFA CEO Geoff Cooper 5:45

Audio, Ethanol, Ethanol News, Farm Progress Show, Renewable Fuels Association, RFA, SAF

ACE Conference Features Panel on IRA Biofuel Incentives

Cindy Zimmerman

Brian Werner, MN Bio-Fuels moderates panel with Donna Funk, Pinion; Mel Schwarz, Eide Bailly and Bradley Pederson, Christianson

The American Coalition for Ethanol (ACE) was holding its annual meeting in Omaha last year as Congress was passing the Inflation Reduction Act (IRA), and this year the ACE Conference in Minneapolis featured a panel of tax experts to discuss the opportunities in the legislation and the current unknowns making it challenging.

“Untangling and Maximizing IRA Biofuel Incentives” covered enhancements to Sections 45, 45Q, 45V, 48 and the new Section 45Z of the Internal Revenue Code, and shared insights on how to maximize on these incentives. MN Bio-Fuels Executive Director Brian Werner moderated the panel which featured:

Donna Funk, Principal-Partner, Pinion
2023 ACE IRA Panel, Donna Funk, Pinion 12:53
Mel Schwarz, Director of Legislative Affairs, Eide Bailly LLP
2023 ACE IRA Panel, Mel Schwarz, Eide Bailly 18:58
Bradley Pederson, Partner, Christianson PLLP
2023 ACE IRA Panel, Bradley Pederson, Christianson 20:19

“The Inflation Reduction Act is a monumental piece of legislation that has the ability to move the ethanol industry well into the future,” said Funk. “The 45Z tax credit is a huge opportunity every producer needs to understand how they can take advantage of.”

However, there are still some unknown details for producers seeking to take that opportunity, particularly when it comes to the 45Z since it is only a three year credit and it starts January 1, 2025. “So folks are making decisions…and will continue to make decisions and significant investments based on what they think or hope that credit is going to work without knowing for certain how much of the maximum dollar they’re going to get,” said Funk.

Listen to an interview with Funk here.
2023 ACE interview - Donna Funk, Pinion 9:44

2023 ACE Conference photo album

ACE, ACE Ethanol Conference, Audio, Ethanol