Ethanol Groups Respond to EU Investigation

Cindy Zimmerman

The European Commission today issued a “general disclosure document” setting forth its proposed ruling in the anti-dumping investigation involving U.S. ethanol exports to Europe.

Growth Energy and the Renewable Fuels Association (RFA) issued a joint statement on the issue:

“We continue to cooperate with the Commission’s investigation. We are troubled by news that the Commission is recommending a 9.6 percent anti-dumping duty to its Member States. We remain convinced that if all the facts are considered, the European Union will decide not to impose any anti-dumping duties on imports of ethanol produced in the United States.”

Last year, the European Union (EU) initiated anti-dumping and countervailing duty investigations regarding U.S. exports of ethanol to Europe and current U.S. policies surrounding ethanol production and use, specifically the expiring volumetric ethanol excise tax credit, or VEETC, available to blenders of ethanol and gasoline. Allegations by EU ethanol producers suggested that U.S. ethanol exports to Europe were taking advantage of the tax incentive before export, thus lowering its price and harming EU ethanol producers. However, by August of this year it appeared the issue had been resolved and the EU would not be taking any action.

Ethanol, Ethanol News, Exports, Growth Energy, International, RFA

EIA Releases 2013 Annual Energy Outlook Forecast

Joanna Schroeder

The Energy Information Agency (EIA) has released its 2013 Annual Energy Outlook forecast summary. While the report looks at all forms of energy with estimates going as far as 2040, there were two areas pertinent to biofuels. The summary forecast stated that renewable fuel use will grow at a much faster rate than fossil fuel use, and the share of generation from renewables will grow from 13 percent in 2011 to 16 percent in 2040.

The summary forecasts that while total liquid fuels consumption will fall, consumption of produced  biofuels increases significantly, from 1.3 quadrillion Btu in 2011 to 2.1 Btu in 2040, and its share of total U.S. liquid fuels consumption will grow from 3.5 percent in 2011 to 5.8 percent in 2040.

“The increases are much smaller than those in AEO2012, however, as a result of diminished FFV penetration, a
smaller motor gasoline pool for blending ethanol, and reduced production of cellulosic biofuels, which to date has been well under the targets set by the EISA. (EPA issued waivers that substantially reduced the cellulosic biofuels obligation under the RFS for 2010, 2011, and 2012.) In addition, the production tax credit for cellulosic biofuels is scheduled to expire at the end of 2012.”

At first glance the outlook for biofuels looks good, but the ethanol industry doesn’t want the take-away being all is good, but rather cautions that this news is not an invitation to curbing or eliminating the RFS.

“Doing so would only prove their lack of understanding of EIA’s report and, more importantly, show their ignorance of the purpose of the RFS,” said ACE Executive Vice President Brian Jennings. “Congress designed the RFS as a flexible and forward-looking policy to serve as a catalyst for biofuel use, and by design, the RFS is built to help break through the blend wall.”

“EIA, on the other hand, makes its projections based on market conditions and known technology. Ten years ago, the EIA Outlook said we could only make 3.4 billion gallons of ethanol in the U.S. by 2020. Congress deemed that unacceptable, and passed the RFS to encourage alternatives to oil, and they were right. The RFS works. Our industry produced almost four times that much ethanol two years ago – ten years ahead of schedule.”

The blend wall is one that is not very high and we’re already at the top but now we can’t get over and down the other side. Scaling the blend wall and increased market access is key, explained Tom Buis, CEO of Growth Energy.

“Currently the blend wall is preventing additional use of biofuels. While grain-based biofuels, such as corn ethanol have not only met, but exceeded the goals, the blend wall has prevented full saturation into the commercial marketplace and has discouraged investments in next generation biofuels.”

Buis added that Growth Energy and the biofuels industry will continue to work with retailers and consumers to educate them on higher blends, such as E15 and continue to garner the support necessary to break through the blend wall.

So if there is one takeaway its this – biofuels are growing and will continue to grow but only if the RFS stays in place and communities across the country work together to bring choice to Americans at the pump.

ACE, advanced biofuels, Cellulosic, Growth Energy, Renewable Energy, RFS

Chamber CEOs: Prioritize Clean Energy

Joanna Schroeder

How many Americans realize that we’re still on a fiscal cliff and that the danger has not been averted? Hopefully the majority of us realize this as Congress debates away during this year’s lame duck session. Many issues are under the microscope, but one that many believe is a key priority in economic growth and policy discussions, including the local chamber of commerce CEOs, is further development of clean energy.

The Chambers for Innovation and Clean Energy (CICE) said it plans to be at the table when clean energy options are being discussed in Congress. Among other clean energy initiatives, the chamber CEOs are urging a renewal of the wind energy Production Tax Credit (PTC) that is currently the key incentive responsible for growing wind energy manufacturing and development in the U.S. Failing to renew the PTC would cause economic harm – layoffs in states throughout the country.

“Our largest wind turbine blade manufacturer in Arkansas, LM Wind Power, has already announced more than 200 layoffs as a result of uncertainty around the PTC,” said Jay Chesshir, President and CEO of the Little Rock Regional Chamber of Commerce. “Wind energy has been a huge economic development success for Little Rock, attracting jobs and investment to our community.  Continuing to diversify our energy portfolio is smart business. Allowing the tax credit for wind energy to expire now would only take us backwards and hurt our local and national economy.”

Local chamber CEOs have emphasized homegrown clean energy is helping to diversify local economies and create business growth nationwide. In 44 states across the country, nearly 500 facilities now manufacture for the wind industry, supporting well-paying jobs in red and blue states. The solar industry—including manufacturers, installers, and other service providers—supports more than 100,000 American jobs.

There is proof that clean energy is an economic driver. For example, with leadership from the Merrimack Valley Chamber of Commerce, businesses in northeastern Massachusetts will save upwards of $30 million over the next 30 years. In Cleveland, Ohio, businesses saved a collective $1.5 million in 2011 alone by participating in the local chamber’s leading energy efficiency program.

CICE said community businesses across the nation are ready to lead the world in clean energy. The missing piece  – a clear market signal from Congress.

Clean Energy, Solar, Wind

Austin Dillion Wins Rookie of Year Award

Joanna Schroeder

American Ethanol sponsored driver Austin Dillion has won the 2012 NASCAR Nationwide Series Sunoco Rookie of the Year award. The ethanol industry has congratulated him and now fans have an opportunity to congratulate Dillion during the American Ethanol live Twitter chat that he will host Monday, December 10, 2012 from 10:30 am to 11:30 am CST.

Dillon was officially named the 2012 NASCAR Nationwide Series Sunoco Rookie of the Year at Homestead-Miami Speedway. He joins his younger brother, Ty Dillon, as a 2012 Sunoco Rookie of the Year. The younger Dillon clinched the NASCAR Camping World Truck Series version of the award on Friday evening.

“All of the American Ethanol partners are so excited for Austin,” said National Corn Growers Association NASCAR Advisory Committee Chairman Jon Holzfaster. “Rookie of the Year is a big win both for him personally and for farmers across the country. With all eyes on Austin, NASCAR fans also get to see the performance and benefits another homegrown winner offers when E15 fuels the race. Every car in every series races to the finish with E15 in the tank, but we are particularly proud that such a talented young driver speaks on our behalf.”

Austin Dillon, who drives the No. 3 car for Richard Childress Racing, culminated his first full season in NASCAR’s No. 2 tour with two race wins, sweeping both Kentucky Speedway events, along with 16 top-five finishes, 27-top-10s and 3 pole awards. Dillon finished third in the championship point standings and was formally honored for his 2012 accolades at the NASCAR Nationwide Series and Camping World Truck Series championship awards banquet.

American Ethanol, Ethanol, NCGA

Caring for Animals is Main Winter Duty

Melissa Sandfort

Our latest ZimmPoll asked the question, ”With harvest over what are your winter plans?”

Our poll results: Thirty-one percent said feed and care for animals; twenty-five percent said paperwork!; twenty-five percent also said catch up on sleep; nineteen percent said repair existing equipment; no one responded research/buy new equipment.

Our new ZimmPoll is now live and asks the question, “What will expiring biotech patents mean for agriculture?” This issue has been building for a few years now as the patent for the first generation of Roundup soybeans is set to expire in 2014. Let us know what you think.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Pacific Successfully Produces Sorghum Ethanol

Joanna Schroeder

Yesterday the EPA announced that grain sorghum is now an official pathway for a renewable fuel under the RFS. Currently, Pacific Ethanol has successfully produced ethanol from sorghum feedstock that was bred by Chromatin. According to Chromatin, this achievement paves the way for future opportunities to use locally grown sorghum as a versatile and resilient crop that is a more energy efficient and lower cost alternative to corn. Due to the positive results, Chromatin plans to expand its sorghum acres in 2013.

R Mussi Farms of Stockton, CA produced 40 acres of sorghum that were harvested and delivered to Pacific Ethanol’s ethanol production plant in Stockton, CA. “We were pleasantly surprised by sorghum’s flexibility. It’s a high-yielding, easy to grow crop regardless of environmental conditions, and it uses less fertilizer and less water than corn,” said Rudy Mussi co-owner of Mussi Farms.

Daphne Preuss, Chromatin’s CEO noted that growers were able to plant and produce high quality sorghum with minimal modifications to their current practices. He also commented that Pacific’s ethanol plants encountered no difficulties when substituting sorghum for corn. Additionally, he said the residue left over after the harvest of sorghum grain can be used as high quality animal feed.

Although sorghum imported from other regions has been used in California ethanol plants in the past, Chromatin’s program is the first instance of supplying locally grown grain to the Pacific Ethanol plant in Stockton, CA. Initial results show greater cost efficiency and an improved carbon footprint.

“During the third quarter, Pacific Ethanol used sorghum for approximately 30 percent of the feedstock at our Stockton plant,” added Neil Koehler, CEO of Pacific Ethanol. Blended with corn, sorghum has similar conversion properties to corn and produces even lower carbon ethanol.”

advanced biofuels, Alternative energy, Ethanol, feedstocks, sorghum

Offshore Wind Within Reach Off Eastern US Shores

Joanna Schroeder

The Obama administration has announced competitive lease sales for wind energy development off the eastern coasts of Massachusetts, Rhode Island and Virginia. This is the first time that a portion of the outer continental shelf will be leased for renewable energy development.

There are several areas proposed for leasing: the Virginia coast could support more than 2,000 megawatts of wind generation; Massachusetts and Rhode Island could support about 2,000 megawatts of wind generation. When combined, these offshore wind farms could generate enough electricity to power an estimated 1.4 million average sized homes.

“We have enormous potential for harnessing pollution-free wind energy off our coasts, and now are closer than ever to making this vision a reality in Massachusetts, Rhode Island, and Virginia. We are thrilled that the Obama administration has announced another critical step forward for offshore wind development and look forward to continuing to work with state and federal leaders to see turbines spinning off our coasts soon,” said Courtney Abrams, Clean Energy Advocate for Environment America.

The organization applauded Obama for his leadership and established its support for responsibly-sited offshore wind energy projects.  Abrams said offshore wind resources are vital to ensuring a future with cleaner air and fewer extreme weather events.  She cited the statistic that along the Atlantic coast alone, reaching the Department of Energy’s goal of 54 gigawatts of offshore wind power would reduce global warming pollution by the equivalent of taking roughly 18 million cars off the road.  In addition, according to the National Renewable Energy Laboratory, meeting this benchmark would generate $200 billion in new economic activity while creating more than 43,000 permanent, high-paying jobs in manufacturing, construction, engineering, operations, and maintenance.

Alternative energy, Carbon, offshore wind, Renewable Energy, Wind

World Energy Trilemma Report Released at Doha

Joanna Schroeder

According to the World Energy Council (WEC), the world is far away from achieving environmentally sustainable energy systems. According to the organization’s global ranking of country energy sustainability performance, over 90 countries assessed are still far from achieving fully sustainable energy systems.

The 2012 Energy Sustainability Index, published within the WEC’s 2012 World Energy Trilemma report, “Time to get real – the case for sustainable energy policy,” finds that most countries still have not managed to balance the energy trilemma. The WEC argues that countries must balance the trade-offs between the three challenges of the trilemma: energy security, social equity, and environmental impact mitigation, if they are to provide sustainable energy systems.

The Index reveals that:

  • Environmental impact mitigation remains a universal problem;
  • Providing high-quality and affordable energy access remains a significant challenge for developing and emerging economies; and
  • Countries at various stages of development struggle with energy security.

“The message of the Energy Sustainability Index is clear: all countries are facing challenges in their transition towards more secure, environmentally friendly, and equitable energy systems,” said Pierre Gadonneix, Chairman of the World Energy Council. “What makes the difference is how they set their final goals, how they balance market economics and public policies, and how they design the smartest policies in order to promote efficiency and to optimise costs, resources and investments for the long term. If we are to have any chance of delivering sustainable energy for all and meeting the +2°C goal, we need to get real.”Read More

Alternative energy, Carbon, Climate Change, Environment, global warming

WindMade Label Expands

Joanna Schroeder

During the COP18 climate talks in Doha, The WindMade organization announced the development of a new consumer label for companies and products made using renewable energy. The label is backed by UN Global Compact, WWF, Vestas Wind Systems and the Global Wind Energy Council. WindMade was launched in 2011 as the first global consumer label for companies powered with wind energy.

“Expanding WindMade is a natural progression, and this move follows strong demand from the market,” said Steve Sawyer, WindMade’s Chairman. “Today’s announcement will allow us to engage a wider range of interested partners and supporters for this new renewable energy label, which is built on the success of WindMade.”

The new label will recognize a wide variety of renewable energy sources, including wind, solar, and geothermal, as well as hydro power and biomass from approved certification programs. This will offer added flexibility to companies that use multiple renewable energy technologies in their energy mix.

Georg Kell, executive director of the UN Global Compact, added, “This new label continues the progress made by WindMade to successfully engage companies in addressing the impacts of climate change. It is fully aligned with the UN Global Compact’s efforts to promote greater corporate sustainability through the use renewable energy.”

A global survey of 24,000 consumers across 20 countries, conducted earlier this year, showed that 92 percent of consumers believe that renewable energy is a good solution to mitigating climate change, and that if presented with a choice, most of them would prefer products made with renewable energy, even at a premium. As a result of the survey, the new label, that will be launched in 2013, will build on the technical foundations of the WindMade standard and will be applicable to organizations, buildings, events and eventually products.

Alternative energy, Climate Change, Geothermal, Hydro, Renewable Energy, Solar, Wind

EPA Approves RFS Path for Grain Sorghum

Joanna Schroeder

The Environmental Protection Agency (EPA) has just announced it’s approval of grain sorghum as an approved pathway for a renewable fuel as part of the Renewable Fuel Standard (RFS). According to EPA, ethanol produced from grain sorghum emits 32 percent less greenhouse gas than the baseline petroleum it replaces and uses one-third less water than some other biofuel feedstocks.

The EPA report states: “EPA’s analysis indicates that ethanol made from grain sorghum at dry mill facilities that use natural gas for process energy meets the lifecycle GHG emissions reduction threshold of 20% compared to the  baseline petroleum fuel it would replace, and therefore qualifies as a renewable fuel. It also contains our regulatory determination that  grain sorghum ethanol produced at dry mill facilities using specified forms of biogas for both process energy and most electricity production, has lifecycle GHG emission reductions of more than 50% compared to the baseline petroleum fuel it would replace, and that such grain sorghum ethanol qualifies as an advanced biofuel under the RFS program.”

Bill Kubecka, chairman of the Sorghum Checkoff and a sorghum producer from Palacios, Texas said, “This is a significant step forward for the sorghum industry. This pathway for grain sorghum will make sorghum a more profitable biofuel feedstock for the renewables industry, thus increasing the value and demand for sorghum.”

The EPA’s ruling further affirms the Sorghum Checkoff’s belief that grain sorghum is a feedstock perfectly suited for starch-based ethanol production.

“We believe this new opportunity to produce advanced biofuel will increase demand for the crop and lead to greater profitability for producers across the nation,” added Sorghum Checkoff Renewables Director, John Duff. “Furthermore, it gives us great pride that these producers will play a key role in supplying homegrown advanced biofuel, and we look forward to supporting them in these efforts going forward.”

advanced biofuels, Alternative energy, Ethanol, RFS, sorghum