Domestic Fuel

The House and Energy Commerce Committee has released its third white paper on the Renewable Fuel Standard, “Greenhouse Gas Emissions and Environmental Impacts.” Executive Vice President of the American Coalition for Ethanol (ACE), Brian Jennings, responded with written comments that included but were not limited to feedback on the RFS role on the environment, agricultural sustainability and tailpipe emissions.

“…petroleum represents the most harmful source of transportation fuel while renewable fuels such as ethanol represent the safest. Recent crude oil spills have killed fish, animals, and plant life. Ethanol, on the other hand, is derived from plant life and ethanol coproducts are fed to fish and livestock. At the same time ethanol’s lifecycle greenhouse gas (GHG) emissions and production efficiencies are dramatically improving, extracting and processing crude oil into gasoline is becoming more expensive, inefficient, and destructive to the environment,” wrote Jennings. (Read ACE’s full comments here.)

The Renewable Fuels Association (RFA) responded to seven questions proposed in the white paper by proposing 10 questions of their own.(Read RFA’s full comments here.)

RFA President and CEO Bob Dinneen said, “When assessing the environmental impacts of renewable fuels, it is absolutely imperative to make appropriate comparisons to the impacts associated with the use of petroleum fuels. In other words, it is inappropriate to examine the environmental effects of the RFS without simultaneously examining the effects of not having the RFS. It is also important to compare new renewable fuels entering the market to the actual sources of marginal petroleum they are delaying and displacing.”

The Environmental Protection Agency has announced proposed Renewable Fuel Standard (RFS2) amendments and clarifications, which include new pathway determinations for advanced biofuels such as isobutanol and ethanol from crop residues.

The EPA proposal also includes “various changes to the E15 misfueling mitigation regulations (E15 MMR) which are minor technical corrections and amendments to sections dealing with labeling, E15 surveys, product transfer documents, and prohibited acts” as well as changes to the survey requirements associated with the ultra-low sulfur diesel (ULSD) program.

EPA is proposing to allow renewable diesel, renewable naphtha, and renewable electricity (used in electric vehicles) produced from landll biogas to generate cellulosic or advanced biofuel RINs. Renewable compressed natural gas (CNG)/liquified natural gas (LNG) produced from landfill biogas are also proposed to generate cellulosic RINs. EPA is also proposing to allow butanol that meets the 50% GHG emission reduction threshold to qualify as advanced biofuel. The rulemaking also proposes a clarication regarding the definition of crop residue to include corn kernel ber and proposes an approach to determining the volume of cellulosic renewable identication numbers (RINs) produced from various cellulosic feedstocks. Further, this proposal discusses and seeks comment on the potential to allow for commingling of compliant products at the retail facility level as long as the environmental perfor­mance of the commingled fuels would not be detrimental. The action also addresses “nameplate capacity” issues for certain production facilities that do not claim ex­emption from the 20% GHG reduction threshold. Several other amendments to the RFS program are included.

“This proposed rulemaking package is essentially a collection of ‘housekeeping amendments’ that will address several odds and ends that needed to be addressed in the regulatory text,” commented Renewable Fuels Association president and CEO Bob Dinneen. “We are pleased that among these proposed amendments is a provision clarifying that ethanol produced from the cellulosic portions of the corn kernel can qualify as cellulosic biofuel under the RFS2.”

“Companies continue to make investments, put steel in the ground, create jobs and develop technologies that reduce dependence on foreign oil and contribute to a cleaner environment,” said Brent Erickson, executive vice president of the Biotechnology Industry Organization’s (BIO) Industrial & Environmental Section. “They are preparing to make additional investments with assurance that U.S. policy is committed to energy security and production of biofuels.”

The proposal has been submitted to the Federal Register for public comment.

A fancy title does not good biofuels policy make.

Mixed emotions are emanating from the introduction of the “Foreign Fuels Reduction Act,” introduced by U.S. Senators Joe Manchin (D-W.Va) and Bob Corker (R-Tenn). The legislation would allow only domestically-sourced fuels to be used to meet the requirements of the Renewable Fuel Standard (RFS).

“It is time for America to create an all-of-the-above energy policy that will help lead us to energy independence,” Manchin said. “It’s simply common sense to use all of our resources, and that includes non-food based biofuels. I am proud to cosponsor this bill with my good friend Senator Bob Corker to make sure that we continue to develop domestic non-food based biofuels while stopping the current system’s incentives to import food-based ethanol products from foreign countries.”

According to Corker, the RFS is having some unintended consequences. “This bill is a common sense step toward potentially mitigating gasoline price increases the RFS may contribute to in the near future,” he said. “Because its mandated biofuels volumes are too high, the RFS is also unintentionally incentivizing ethanol imports.  Our bill helps to correct that problem by more properly aligning mandated levels with what we produce domestically.”

The potential challenge with the bill? It would require a reduction in the volume of cellulosic biofuel required under the RFS. It would also result in a pro rata reduction to the total volume of renewable fuel and advanced biofuels,a fight many anti-biofuel camps have been engaged in for years. While this would “ensure” only domestically produced biofuels are used, it would lower the total amount required until production levels ramp up significantly.
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Biofuels producers in 38 states recently received payments from the U.S. Department of Agriculture. Acting Under Secretary for Rural Development Doug O’Brien made the announcement, pointing out these payments of nearly $14 million to 162 producers are still going out, even with the current budget cuts:

“These payments represent the Obama administration’s commitment to support an ‘all of the above’ energy strategy,” O’Brien said. “Producing advanced biofuels is a major component of the drive to take control of America’s energy future by developing domestic, renewable energy sources.”

The funding is being provided through USDA’s Bioenergy Program for Advanced Biofuels, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include but are not limited to: crop residue; animal, food and yard waste material; vegetable oil; and animal fat. Biofuel can be from a variety of non-food sources, including waste products.

Biodiesel Magazine reports most of the current payments are to biodiesel producers.

In the five years the program has been in effect, the USDA says more than 280 producers in 45 states and territories have received $192.5 million, supporting the production of more than 3 billion gallons of advanced biofuels. A full list of payees is available here.

Synthetic Genomics (SGI), has entered into a new co-funded research agreement with ExxonMobil to develop algae biofuels. The new agreement is a science research program that focuses on developing algal strains with significantly improved production characteristics by employing synthetic genomic science and technology. Financial details of the agreement were not disclosed.

“We look forward to working with ExxonMobil to undertake this in-depth focus on the basic science research to better understand and enhance algae,” said J. Craig Venter, Ph.D., SGI’s founder and chief executive officer.  ”The new agreement gives us an opportunity to really focus on improving algal strains using our core synthetic biology technologies to develop biofuels.”

In June 2009, SGI and ExxonMobil announced a research and development alliance focused on naturally occurring and conventionally modified algae strains. According to a news release, during the past four years, the companies have gained considerable knowledge about the challenges in developing economical and scalable algae biofuels. SGI also made significant strides in understanding algae genetics, growth characteristics, and enhancements to algae to improve algal biomass and lipid productivities.

According to SGI, this new agreement places greater emphasis on basic scientific research to develop strains which reproduce quickly, produce a high proportion of lipids and effectively withstand environmental and operational conditions. The company currently has two facilities – a smaller scale research greenhouse and laboratory near the SGI campus in La Jolla, CA, and a larger-scale development and commercial production facility with closed photobioreactors, open ponds and product recovery unit operations in Imperial Valley, CA.

The U.S. Senate today confirmed Ernest Moniz to replace Steven Chu as the Nation’s Secretary of Energy. The 96-0 vote was welcomed by biodiesel and ethanol groups:

“Throughout his career, Ernest Moniz has supported efforts to move beyond fossil fuels to a cleaner, more secure energy future in which renewable sources play a prominent role,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. “He knows that advanced biofuels like biodiesel are critical to our long-term energy and environmental security, and he has supported practical policies aimed at developing renewables in order to reduce our dependence on petroleum, create jobs and reduce harmful emissions.”

Michael McAdams, president of the Advanced Biofuels Association, issued a statement in support of the confirmation. “We are pleased that President Obama tapped such a strong advocate for policy that supports solid energy growth and is a friend of the advanced biofuels community.”

“I would like to congratulate Ernest Moniz on his confirmation as the Secretary of Energy. President Obama has chosen an excellent and well-qualified individual to lead the Department of Energy and I look forward to working with Secretary Moniz to continue to advance the growth and development of sustainable biofuels,” said Tom Buis, CEO of Growth Energy.

The Renewable Fuels Association also congratulated Moniz. “Given his background and expertise in energy, we look forward to the secretary’s first visit to an ethanol plant. We are eager for him to see firsthand the positive economic impact the renewable fuel standard has had in creating new jobs and revitalizing rural economies,” said Bob Dinneen, president and CEO of the RFA.

Brooke Coleman, executive director of the Advanced Ethanol Council, added his praise of the pick. “Secretary Moniz has just the right combination of technical expertise and political experience to be very effective as the new Secretary of Energy. He clearly understands what it takes to commercialize new energy technologies, and we look forward to working with the Secretary and his colleagues going forward as the advanced ethanol industry deploys commercially in the United States and abroad.”

The House Agriculture Committee passed the Federal Agriculture Reform and Risk Management Act (FARRM) of 2013 by a vote of 36 to 10 late Wednesday night. While the bill does contain an energy title, an amendment to make funding of energy programs mandatory was defeated.

“We thank the entire committee for reauthorizing the programs, but mandatory funding is vital to their continued success. We look forward to working with all Congressmembers and Senators to ensure that a Farm Bill gets enacted this year that includes mandatory funding for these important programs,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

The Senate version does contain mandatory funding for renewable energy and energy efficiency programs. “We thank the members of the Senate Agriculture Committee, especially Senator Amy Klobuchar for increasing the funding for the Renewable Energy for America Program, and Senators Joe Donnelly and Pat Roberts for a bipartisan proposal to improve risk management options for biomass crops,” said Lloyd Ritter, co-director of the Agriculture Energy Coalition. “We look forward to working with them to ensure the continued success of Farm Bill energy programs.”

“Funded farm and energy policy is better: it puts those benefits into action. On that score, we’re concerned the House bill missed the mark,” Adam Monroe, Americas Regional President of Novozymes, said of the committee bills. “While we appreciate the House Agriculture Committee reauthorizing the biomass programs, we urge them to follow the Senate committee’s lead and support a strong, fully-funded energy title.”

The Senate bill is expected to go to the floor next week while the House bill is slated for next month.

Waste-to-biofuels company Enerkem has launched a new research project with the Government of Canada. The project objective is to develop new catalytic processes for the conversion of waste into drop-in biofuels that can be used to replace conventional gasoline, diesel and jet fuel. The Government of Canada is contributing $1.1 million to this project via Natural Resources Canada.

“Enerkem’s core business is the commercial production of cellulosic ethanol, and we now intend to take advantage of our flexible technology platform to gradually expand our line of biofuels and chemical products,” said Vincent Chornet, president and CEO of Enerkem. “This research project is part of our growth strategy and demonstrates our commitment towards innovation and a greener economy.”

Enerkem’s technology produces a chemical-grade synthesis gas that serves as a key intermediate for the production of renewable fuels and chemicals. This R&D project will be conducted at Enerkem’s research and development pilot facility in Sherbrooke, Quebec, in collaboration with the University of Sherbrooke.

“Through the ecoENERGY Innovation Initiative, our Government is investing in innovative clean energy technologies that create jobs, generate new economic opportunities and protect the environment,” added the Honourable Joe Oliver, Canada’s Minister of Natural Resources. “This program demonstrates our tangible support for energy projects that drive energy innovation.”

The demonstration cellulosic ethanol plant owned by Edeniq and located in Visalia, California has exceeded 1,000 hours of continuous operation. The corn-to-cellulosic migration plant uses the company’s proprietary technology to process more than one metric ton of feedstock per day into cellulosic ethanol. According to the company, this achievement exceeded the plant’s initial target. The project, funded in part by a U.S. Department of Energy (DOE) grant, is being used to demonstrate the viability of producing ethanol in a cost-effective manner from non-food sources including corn stover, switchgrass and woodchips.

In addition to achieving over 1,000 hours of continuous operation, the plant sustained and exceeded the DOE’s target of at least 90 percent up time demonstrating over 95 percent operational reliability. In addition, the facility promotes the use of sustainable resources including reusing or recycling substantial portions of its water to meet process demands, according to a company press release.

“While we have been developing these ethanol technology solutions for years, being able to fully integrate and operate our own plant has given us invaluable, deeper insight into the intricacies of the process and has enabled us to continuously improve our core technologies and operations,” said Thomas P. Griffin, chief technology officer at Edeniq. “The DOE has been a tremendous leader and driver in moving US interests toward the commercialization of advanced biofuels, and we look forward to further collaboration with them in the pursuit of this shared mission.”

The next step for Edeniq is to continue operations of the plant under the co-sponsorship of the California Energy Commission. The plant will undergo further process enhancements toward the production of low-cost sugars from a range of biomass and agricultural waste sources, including those indigenous to California. Edeniq is also working with companies to implement larger scale facilities based on the successful testing and operations of its demonstration plant.

The Senate Agriculture Committee voted 15-5 today to approve the Agriculture Reform, Food and Jobs Act of 2013, which includes cuts to reduce the deficit by $23 billion dollars but still offers a commitment to renewable energy.

The bill includes an energy title that helps to advance “bio-energy production, supporting advanced biomass energy production such as cellulosic ethanol and pellets from woody biomass for power.”

The bill also provides support for blender pumps and higher ethanol blends, which was welcomed by the ethanol industry. “The American Coalition for Ethanol (ACE) thanks Chairwoman Stabenow and members of the Senate Agriculture Committee for adopting a Farm Bill which provides $800 million in mandatory funding for critical Energy Title initiatives, particularly $241 million in mandatory funding for the Rural Energy for America Program (REAP),” said ACE Executive Vice President Brian Jennings. “REAP provides vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol. Today’s action highlights strong bipartisan support for market access to E15 and midlevel blends, such as E30 or E85. We encourage the U.S. Senate to take action soon to enact the Farm Bill.”

The bill is expected to move to the Senate floor next week.

As the Senate and House Agriculture Committees begin to mark up a new farm bill this week, big changes are expected in the next farm bill when it comes to farm programs and ethanol is helping to make that happen.

At the annual National Association of Farm Broadcasting Washington Watch issues forum on Monday, Renewable Fuels Association president and CEO Bob Dinneen said the dramatic changes in farm programs expected are actually being made possible by the increased use of biofuels that has taken place under the Renewable Fuel Standard (RFS). “It used to be that the price of corn was far less than the cost of production and it was government farm programs that would make up the difference,” said Dinneen. “And one of the things that Congress intended with the value-added ethanol industry was creating a value for farmers that would allow them to reduce farm program costs and it has done exactly that.”

Dinneen said the Senate farm bill proposal, which is being marked up this morning in committee, does include an energy title, the farm bill is not a real focus for them but they do hope that the farm bill will include funds for USDA to support blender pump installation and the development of advanced biofuels.

The Advanced Ethanol Council (AEC) has sent a letter to the White House expressing concern about ongoing delays in the approval process for advanced biofuel pathways pursuant to the implementation of the federal Renewable Fuel Standard (RFS). The letter calls for the White House Office of Management and Budget (OMB) to prioritize and approve a number of these pathways to facilitate the program.

“While we understand that the White House and U.S. EPA must be thorough in their analysis when it comes to which advanced biofuels qualify for the RFS, we have gotten to the point where administrative delays are causing project developers to look to other countries to build their facilities,” said AEC Executive Director Brooke Coleman. “The private sector has stepped up to the plate when it comes to advanced biofuels and the RFS, but developers rightly expect resolution on the pathways to start construction on these projects. There is a point where too much delay and uncertainty drives these innovative projects to Brazil and China, and that’s where we are for some of the more critical pathways.”

The AEC points out that some pathway deliberations have been ongoing for three years without any clear timeframe for resolution. “It is absolutely critical for the private investment marketplace to have a transparent, expeditious and predictable resolution process for all proposed pathways, or we face the prospect of losing these projects to other countries, ” the letter states.

Researchers at the U.S. Department of Agriculture have developed a new strain of yeast that could cut the costs of cellulosic ethanol production. This Agricultural Research Service (ARS) news release says the work is being done at the agency’s National Center for Agricultural Utilization Research in Peoria, Ill.

ARS molecular biologist Zonglin Lewis Liu and his colleagues determined that this yeast strain can break down and ferment the sugars in corn cobs left behind after the compound xylose—which is sometimes used for industrial activities—has been extracted. The new strain of yeast, Clavispora NRRL Y-50464 (Y-50464), can tolerate cob-derived compounds that interfere with yeast growth and fermentation rates.

The scientists added the enzymes cellulase and beta-glucosidase, which are often used to break down residues and extract sugars, and observed that Y-50464 reached its peak ethanol production rate of 25.7 grams per liter 5 days after the experiment began. But the yeast actually produced more ethanol, 26.6 grams per liter in 5 days, without the addition of beta-glucosidase.

Confirmation of beta-glucosidase in Y-50464 will eliminate the need to include the cost of that additional enzyme to the process.

Wisconsin-based Virent has delivered the first 100 gallons of its bio-based jet fuel to the U.S. Air Force Research Laboratory (AFRL) for testing. This company news release says it will be validated against the standards required for qualification and approval of new aviation turbine fuels established by the American Society for Testing and Materials (ASTM):

Dr. Tim Edwards of the AFRL’s Fuels and Energy Branch said, “AFRL is looking forward to working with Virent and the FAA to evaluate the performance of this fuel. This larger sample will help generate the performance data needed to advance the technology toward engine and flight testing.”

Lourdes Maurice, Executive Director of the FAA’s Office of Environment and Energy said, “We are excited that Virent is able to effectively utilize FAA funding to deliver these gallons for testing. The fuel will be used with our partners in the industry and government to progress testing of novel alternative jet fuels that can help meet FAA’s environment and energy goals under the Next Generation Air Transportation System.”

Virent officials say if the testing is successful, they next step will be to get the refinery up to commercial capacity.

It’s down to the wire for the biofuel and agricultural industries to submit comments on the agricultural impact of the Renewable Fuel Standard (RFS), a second in an RFS series being published by the House Energy and Commerce Committee. Growth Energy, Fuels America, and the Renewable Fuels Association (RFA) all submitted input today.

The consensus among the biofuel industry is that the RFS is one of the most successful energy policies in the last 40 years. The industry cites the ethanol industry has been a direct benefit for farmers as well as Americans.

Bob Dinneen, CEO and president of RFA noted, “…it is important to remember that a central objective in developing a vibrant and robust ethanol industry was to increase demand for agricultural products and enhance farm income.” He points out that the emergence of ethanol has transformed the grain sector from a “stagnating, surplus-driven marketplace to one that is vibrant, high-tech and demand-driven.”

While opponents of ethanol say that the fuel has caused food prices to rise, Growth Energy CEO Tom Buis said that people need to better understand the relationship between corn and ethanol. “While our critics have said the ethanol industry uses a significant portion of the corn crop, if you look beyond simple volume of corn and into the net corn acreage used, the industry actually only utilizes 17.5 percent of the acres because of displacement of corn and soybean meal through the use of distiller grains as a high protein animal feed,” who also noted that biofuels have also been a benefit to farmers globally.

In a letter from Fuels America, the organization’s membership urged to keep the RFS in place because it is the framework upon which cellulosic and advanced biofuels are being built. “The future growth in the sector lies in the cellulosic and advanced spaces where billions of dollars have been invested in research and development, testing, and commercialization of an entire industry that did not exist in 2007. Today, the industry is putting steel in the ground on multiple commercial facilities led by companies including INEOS Bio in Vero Beach, Florida; KiOR in Columbus, Mississippi; Abengoa in Hugoton, Kansas; POET-DSM in Emmetsburg, Iowa; and DuPont in Nevada, Iowa.”

Ultimately, the biofuel industry is urging Congress to keep the course as set for the RFS.