RFA CEO Comments on Final EPA Actions

Cindy Zimmerman

The final regulatory actions taken today by the Environmental Protection Agency (EPA) bring certainty back to the Renewable Fuel Standard and pave the way for future growth in the production and use of low-carbon renewable fuels, and will lead to lower gas prices and greater energy security, according to the Renewable Fuels Association.

“At long last, the RFS is being put back on track. Today’s actions by EPA and the Biden administration restore integrity and stability to the RFS program after several years of wanton mismanagement and abuse by the previous administration,” said RFA President and CEO Geoff Cooper. “The combination of a strong RVO for 2022, restoration of illegally waived volume from 2016, and a new direction for the SRE program puts the RFS program on solid footing for the future. We thank Administrator Regan and President Biden for honoring their commitments to implement the RFS in a way that is fair, transparent, and focused on growth.”

Cooper also noted that today’s package couldn’t have come at a more important time, as consumers are facing record high gas prices driven by instability in global energy markets. “By requiring petroleum refiners to blend larger volumes of low-cost biofuels like ethanol, today’s actions will put downward pressure on gas prices and provide economic relief to American families facing record high pump prices,” he said. “In the last few days alone, wholesale ethanol prices have been as much as $1.30 per gallon lower than gasoline, leading to significant savings at the pump for consumers of ethanol-blended fuels like E10, E15, and E85.”

RFA released an explainer documenting how ethanol reduces prices at the pump, due to its lower cost and the fact that it augments the overall fuel supply.

Cooper says they are disappointed with the EPA’s decision to reopen and retroactively lower RFS requirements for 2020, which they believe is entirely unnecessary. “The RVO already includes a self-correcting mechanism that caused actual renewable fuel volume requirements to adjust lower when COVID led to reduced gasoline and diesel consumption. In addition, EPA has consistently acknowledged in the past that it lacks the authority to go back in time and reopen annual RVOs that have already been finalized and implemented.”

Listen to Cooper’s comments on the EPA announcement and also USDA’s announcement that COVID recovery payments for biofuels producers for losses incurred in 2020 are finally going out to producers.
RFA CEO Geoff Cooper (7:32)

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

EPA Finalizes RFS Rules

Cindy Zimmerman

The Environmental Protection Agency finalized a package of actions Friday setting biofuel volumes for the Renewable Fuel Standard (RFS) program for years 2020, 2021, and 2022, and introducing regulatory changes intended to enhance the program’s objectives.

EPA also established a 250-million-gallon “supplemental obligation” to the volumes finalized for 2022 and stated its intent to add another 250 million gallons in 2023, to address the remand of the 2014-2016 annual rule by the DC Circuit Court of Appeals in Americans for Clean Energy v. EPA.

To promote efficiency and opportunity in producing biofuels, this action also establishes a regulatory framework that allows biointermediates to be included in the RFS program, while ensuring environmental and programmatic safeguards are in place.

According to the Renewable Fuels Association, the final regulatory actions taken by EPA “bring certainty back to the Renewable Fuel Standard and pave the way for future growth in the production and use of low-carbon renewable fuels”, and will lead to lower gas prices and greater energy security. However, RFA President and CEO Geoff Cooper says they are disappointed with the EPA’s decision to reopen and retroactively lower RFS requirements for 2020, which they believe is entirely unnecessary.

American Coalition for Ethanol (ACE) CEO Brian Jennings agreed. “While we strongly object to the unnecessary retrospective cut EPA is making to 2020 volumes, we are pleased the Agency is upwardly revising the 2021 volumes to align more closely with actual consumption and upholding base conventional volume of 15 billion gallons for 2022, along with 250 million supplemental gallons to address the DC Circuit court order in 2017.”

Clean Fuels Alliance America is pleased the final rule recognizes the continued growth of biodiesel, renewable diesel and other clean fuels and establishes readily achievable program obligations. Vice president of federal affairs Kurt Kovarik says they particularly support EPA’s decision to deny pending small refinery exemptions and its consistent finding that the program benefits Americans without hardships for refiners. “EPA’s denial of pending small refinery exemptions for 2019 through 2021 assures our industry that the volumes set today will be fully met, even with compliance flexibilities. This is an important first step in restoring integrity to the program.”

Kovarik says they encourage the agency to quickly finalize new feedstocks pathways, such as that for canola oil.

ACE, Biodiesel, biofuels, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Provides COVID Payments for Biofuel Producers

Cindy Zimmerman

It was June 15, 2021 when Agriculture Secretary Tom Vilsack announced additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative, which included $700 billion for biofuels producers, for losses incurred in 2020.

Not quite an entire year later, USDA finally made good on that promise today, providing more than $486 million for 62 producers located in “socially vulnerable communities” with a total of more than 100 biofuel producers and 195 facilities.

USDA is making payments to 195 biofuel production facilities to support the maintenance and viability of a significant market for agricultural producers of products such as corn, soybean or biomass that supply biofuel production. These biofuel producers experienced unexpected market losses on a combined 3.7 billion gallons as a result of COVID–19.

For example:

In Iowa, Southwest Renewable Energy LLC is receiving a payment of $3 million. It suffered a market loss on 14.3 million gallons of ethanol due to the pandemic.
In Illinois, Adkins Energy is receiving a $774,000 payment. Its biomass-based diesel production suffered a market loss on almost 3.5 million gallons due to the pandemic.
In Texas, White Energy Holding Company is receiving a $21 million payment for production at two facilities. Its ethanol production suffered a market loss on 98 million gallons due to the pandemic.

The investments USDA is making today will support biofuel producers in California, Colorado, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Nebraska, New York, Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia and Wisconsin.

Ethanol, Ethanol News, USDA

Input Sought for Ethanol Book

Cindy Zimmerman

August 8, 2005 was a pivotal moment for the U.S. ethanol industry with the signing of the Energy Policy Act that created the first Renewable Fuel Standard (RFS). After 30 years of working toward recognition as a viable alternative fuel that could help reduce our dependence on foreign oil while providing a new market for corn growers, the tide was finally turning.

The road getting to the first RFS was long and bumpy and the ride since 2005 has been chaotic. It’s a story that needs to be told and Energy.AgWired is taking on the task and we need input from the people who have lived it.

This website was started in September 2005, just weeks after the signing of the bill, and it contains an archive of photos and interviews over the years since that time. I would like to hear from the farmers and ethanol producers and industry leaders who were part of getting us to where we are today, the stories of the pioneers and the champions who made it happen.

Please feel free to comment on this post or send me an email cindy@zimmcomm.biz and tell me your story.

Ethanol, Ethanol News

Export Exchange is Back for 2022

Cindy Zimmerman

The Renewable Fuels Association, U.S. Grains Council (USGC) and Growth Energy are pleased to open registration for the first Export Exchange since 2018, scheduled for October 12-14, 2022, in Minneapolis.

The biennial event had to be cancelled due to COVID in 2020 and again in 2021 but this year the sponsoring organizations expect to bring together 200 international buyers and end-users of coarse grains and co-products, including distiller’s dried grains with solubles (DDGS), with approximately 300 U.S. suppliers and agribusiness representatives.

“Export Exchange is uniquely focused on connecting international grain buyers with U.S. suppliers,” said Chad Willis, USGC chairman and farmer from Minnesota. “We are excited to have members of the export industry join us and so many of our customers in Minneapolis this fall to learn the latest about U.S. exports and how to purchase.”

Reported sales associated with the last Export Exchange in 2018 included approximately 1.3 million metric tons of grains and co-products worth $403 million traded either at the conference or immediately before or after.

“Over the past few decades, DDGS has evolved into an invaluable component of the global animal feed market. Today, one out of every three tons of DDGS produced in the United States is exported to customers around the world,” said RFA President and CEO Geoff Cooper. “Export Exchange offers unparalleled opportunities for face-to-face engagement between U.S. producers and existing and potential DDGS customers.”

Registration and more information is available at ExportExchange.org.

corn, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, Grains, Renewable Fuels Association, RFA, USGC

Southwest Airlines Invests in Sustainable Aviation Fuel

Cindy Zimmerman

Southwest Airlines has announced an investment in a sustainable aviation fuel (SAF) pilot project supported by the U.S. Department of Energy.

Southwest is investing in SAFFiRE Renewables, a company formed by D3MAX, LLC (D3MAX), to develop and produce scalable, sustainable aviation fuel (SAF). Funded with a DOE grant matched by Southwest’s investment, SAFFiRE is expected to utilize technology developed by the DOE’s National Renewable Energy Laboratory (NREL) to convert corn stover, a widely available waste feedstock in the U.S., into renewable ethanol that then would be upgraded into SAF.

In 2021, the DOE awarded D3MAX the only pilot-scale grant for SAF production, with a goal to scale technology that could commercialize SAF. According to NREL, this could produce significant quantities of cost-competitive SAF that could provide an 84 percent reduction in carbon intensity compared to conventional jet fuel on a lifecycle basis. Southwest’s match of the DOE’s grant supports phase one of the project, which is expected to include technology validation, preliminary design, and a business plan for a pilot plant.

If the pilot project is successful in validating the commercialization of this corn-stover-to-ethanol technology, DOE and Southwest would have the opportunity to fund a second phase investment where the renewable ethanol would be upgraded into SAF by LanzaJet at its biorefinery currently under construction in Soperton, Georgia.

“We are extremely excited to be working with Southwest Airlines—they will be a great investor,” said Mark Yancey, CEO of SAFFiRE. “SAFFiRE technology is expected to produce lower carbon SAF compared to conventional jet fuel on a lifecycle basis, which could become carbon negative with process improvements and carbon capture. If we are successful in developing and commercializing this technology, we project the technology can produce 7.5 billion gallons per year of SAF by 2040.”

The DOE grant was part of $64 million awarded in September 2021 for 22 projects focused on developing technologies and processes that produce low-cost, low-carbon biofuels. The second part of this “Scale-Up of Integrated Biorefineries” funding opportunity announcement (FOA) was announced by DOE this week, offering an additional $59 million to support the Sustainable Aviation Fuel Grand Challenge goal of three billion gallons of sustainable aviation fuel annually by 2030 and 35 billion gallons annually by 2050.

advanced biofuels, aviation biofuels, Ethanol, Ethanol News

RFA CEO Corrects Anti-Ethanol Fact Errors

Cindy Zimmerman

As the saying goes, “Everyone is entitled to his own opinion, but not his own facts.” In a recent Washington Times guest column, anti-ethanol critic Jerry Jung, founder of the group “ReThink Ethanol,” presents complete falsehoods about both ethanol and the Renewable Fuel Standard as facts in order to try and prove his opinion that ethanol is bad.

Renewable Fuels Association president and CEO Geoff Cooper attacked those falsehoods in a letter to the Washington Times, which the newspaper has not chosen to publish.

“How are we to trust Jung when he can’t even get basic facts about the Renewable Fuel Standard (RFS) and ethanol correct?,” writes Cooper. “He claims the EPA “mandated” the production of 20.77 billion gallons of corn ethanol this year. No such mandate exists, nor has there ever been a requirement to use corn ethanol. Rather, EPA has proposed to require the use of 20.77 billion gallons of all renewable fuels under the RFS in 2022. Oil companies are free to choose the renewable fuel that makes the most sense for them to blend, be that biodiesel, biogas, renewable diesel, sustainable aviation fuel, cellulosic ethanol, or any number of other renewable fuels. Far from “mandating” corn ethanol, EPA in fact places a limit (of 15 billion gallons) on the amount of corn ethanol that can be used to fulfill the RFS requirements.”

Read the rest of Cooper’s letter here.

Ethanol, Ethanol News, Opinion, Renewable Fuels Association, RFA, RFS

POET Bioprocessing – Cloverdale Reopening in 2023

Cindy Zimmerman

POET will be reopening its bioprocessing facility in Cloverdale, Indiana, which was idled in 2019, now that federal and state policymakers have taken action to safeguard domestic markets for low-carbon biofuels.

The facility will create 50 full-time local jobs and generate demand for 34 million bushels of corn from Indiana farmers annually. Restarting the Cloverdale facility will bring POET’s network to a total of 34 bioprocessing plants across eight Midwest states, five of which are located in Indiana.

“We are very excited to be reopening our Cloverdale facility,” said Jeff Broin, POET Founder and CEO. “The plant will undergo significant upgrades to include the same industry-leading advantages operating at other POET plants, and we are confident it will be a strong asset to the POET portfolio. We are grateful to the Putnam County Council and the Putnam County Economic Development Corporation for supporting this investment.”

The plant was initially idled in 2019 due in part to the Environmental Protection Agency’s mismanagement of small refinery exemptions (SREs) which weakened the incentive for retailers to offer higher biofuel blends. The Biden Administration has made strides recently showing support for biofuels, including the waiver in April lifting outdated restrictions on E15 for this year. On the state level, Indiana’s strong support for E15 — including actions by the Governor, Lieutenant Governor, and legislature — was a key factor in POET’s decision to reinvest in the state.

Ethanol, Ethanol News, POET

INDYCAR Goes to 100% Renewable Ethanol

Cindy Zimmerman

2007 Indy 500 green flag sports “e” for ethanol

The NTT INDYCAR SERIES announced over the Indy 500 weekend that the 2023 season will be powered by 100% second-generation ethanol derived from sugarcane waste made in Brazil.

Shell will produce a new race fuel “that is 100% comprised of feedstocks categorized as “renewable” under the applicable regulatory frameworks.”

The fuel developed by Shell is set to make the NTT INDYCAR SERIES the first United States-based motorsports series to power racing with 100% renewable race fuel and enables at least 60% greenhouse gas emissions reduction compared to fossil-based gasoline. “This race fuel development for INDYCAR is a great example of how fuels technology is pivotal in helping decarbonize the sport,” said Dr. Selda Gunsel, president of Shell Global Solutions. “Today’s development takes us one step closer to that goal.”

The second-generation ethanol will be sourced from Raízen, a Brazilian Joint-Venture created in 2011 by Shell and Cosan. Raízen is one of the largest sugarcane ethanol producers in the world and owner of the first commercial second-generation ethanol plant.

It was 15 years ago in 2007 that the Indy Racing League first started using 100% American made fuel grade ethanol instead of petroleum-based methanol. That was the result of efforts by the domestic ethanol industry, which at the time was riding a wave of popularity. Two years later the league made a deal with Brazil to supply the fuel, but switched to an 85 percent blend in 2012 which it has been since that time.

Ethanol, Ethanol News, Indy Racing, Racing

FEW Expects Biggest Crowd Since 2009

Cindy Zimmerman

Ethanol Producer Magazine and BBI International are expecting the largest attendance since 2009 at the upcoming International Fuel Ethanol Workshop & Expo (FEW) June 13-15 in Minneapolis, Minnesota.

The total number of attendees who are producers of ethanol, biodiesel, renewable diesel, cellulosic ethanol, sustainable aviation fuel or other advanced biofuels is on pace to be close to 600 attendees. The total number of exhibitors inside the expo hall is currently at 340 and is expected to grow.

“This is a must-attend event if you are connected to the ethanol industry,” says John Nelson, vice president of operations, sales and marketing at BBI International. “We are extremely pleased with the excitement surrounding this year’s FEW and the numbers are proof that this will be one of the largest events to date. It will be the largest FEW since 2009.”

180 presentations fill the agenda at this year’s International Fuel Ethanol Workshop & Expo, as well as the co-located events. All FEW registered attendees are able to attend the sessions for the Biodiesel & Renewable Diesel Summit and the preconference events, the Carbon Capture & Storage Summit and Ethanol 101. Both preconference events are taking place Monday, June 13th.

“There is a massive amount of content for attendees this year, including sessions on sustainable aviation fuel,” said Tim Portz, program director for the FEW. “With the Carbon Capture Summit, Ethanol 101, and the Biodiesel & Renewable Diesel Summit available to all attendees, this is the best place to be if you are interested in learning about biofuels technology advancements and policy that is directing the industry.”

Ethanol, FEW