Italy has passed a law that will set the way for national binding targets. The news comes on the heels of talks by the European Union (EU) on what, if any, binding renewable energy targets should be in place. The official degree as published in the “Gazzetta Ufficiale” states that fuel suppliers will be obligated to blend fuel:
- at least 0.6% advanced biofuels in petrol and diesel beginning January 1, 2018;
- 0.8% beginning January 1, 2020; and
- 1% beginning January 1, 2022.
The passage of Italy’s law comes at the same time the European Council released its 2030 Energy and Climate Package where the transportation sector has seen the most positive changes when compared to the first proposal. The law now puts Italy as the lead in Europe on mandating advanced biofuels from waste and residues.
The Italian decree comes six months after the Italian Ministry of Economic Development announced in May the intention to fund the construction of three advanced biofuels facilities in Southern Italy and is part of the country’s initiatives to boost competitiveness.
In the fall of 2013, Novozymes, together with Italian company Biochemtex opened the world’s first commercial-scale advanced biofuels refinery in Italy – using agricultural waste as input. When asked by DomesticFuel what message Italy’s mandate sends to other countries, Novozymes’ Vice President for Biomass Conversion, Sebastian Søderberg answered, “In general, it will send a very positive signal to the other European countries and outside Europe. Italy and a number of other member states have been pushing for a mandate for advanced biofuels at EU level for more than 2 years and Italy’s move will support this process.” Continue reading
A new paper from automotive engineers shows how the federal government has a bias toward Big Oil. Officials from the American Coalition for Ethanol (ACE) praised a new Society of Automotive Engineers (SAE) paper authored by experts from Ford Motor Company, General Motors Company, and AVL Powertrain Engineering Inc. that concludes that emissions from higher ethanol blends are cleaner than gasoline, and the approach used by the U.S. Environmental Protection Agency (EPA) to estimate exhaust emissions, the Motor Vehicle Emissions Simulator (MOVES) model, is biased in favor of oil.
“We applaud these Ford, General Motors, and AVL Powertrain engineers for exposing that EPA’s MOVES model is biased in favor of a result oil companies prefer and ignores the way gasoline is blended with ethanol in the real-world,” said [ACE Executive Vice President Brian] Jennings. “This is just the latest example of how Big Oil is twisting EPA’s arm to limit ethanol use. First, it appears EPA is about to completely rewrite the Renewable Fuel Standard to help oil companies avoid their legal responsibility to blend fuels, like E15 and E85, which reduce greenhouse gas emissions. Now, EPA is relying on a biased approach for estimating tailpipe emissions, remarkably making gasoline appear cleaner than ethanol.” Continue reading
U.S. Secretary of Commerce Penny Pritzker has appointed Jim Miller, Growth Energy’s Vice President and Chief Economist, to a position on the Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee. The departmental committee was established to advise the Secretary on programs and policies to expand U.S. renewable energy and energy efficiency exports.
“This is a wonderful opportunity to help increase awareness of the importance of renewable fuels as well as expand markets across the globe to help export clean, sustainable energy that will help create jobs right here at home, while improving the environment around the globe and reducing the world’s dependence on fossil fuels,” said Miller.
Miller previously served as the Senior Policy Advisor on the Budget Committee under Senator Kent Conrad (D-N.D.). Prior to his service on Capitol Hill, Miller was appointed by President Obama and confirmed by the U.S. Senate to serve as the Under Secretary for Farm and Foreign Agriculture Services at the U.S. Department of Agriculture.
Also appointed to the committee was Kelly Davis of the Renewable Fuels Association.
DuPont will now be sitting on the governing board of the Renewable Fuels Association (RFA). The company has been an associate RFA member for more than 10 years and has now upgraded its membership as its first cellulosic ethanol plant is in its final stages of construction. The biorefinery will be co-located next to Lincolnway Energy in Nevada, Iowa and when complete will produce 30 million gallons per year of ethanol using corn ag waste.
“Next generation cellulosic ethanol is emerging on the market and DuPont is at the forefront of innovation. Their knowledge and expertise in all aspects of the biofuels industry make them a valuable addition to the Renewable Fuels Association,” said Bob Dinneen, president and CEO of the RFA. “I am eager to work together to advance the renewable fuels industry, which is already directly and indirectly employing nearly 400,000 people, reducing GHG emissions, and lowering America’s foreign oil dependence.”
William Feehery, president of DuPont Industrial Biosciences said of their renewed commitment to the ethanol association, “RFA is a leading voice in Washington on issues related to our industry and we look forward to working even more closely together as we reach full cellulosic production in the coming year. We acknowledge the hard work RFA has done to promote and defend the Renewable Fuel Standard (RFS) both as an individual organization and as our partner in the Fuels America Coalition. A stable RFS is vitally important to support growth for the existing corn ethanol industry while garnering the investment needed to expand and grow cellulosic ethanol in the United States. We must keep the technology, research, and development here in the United States so consumers can continue to have choices at the pump and America can reduce its reliance on foreign oil.”
Renewable Fuels Association (RFA) Director of Regulatory Affairs Kelly Davis has been appointed to the Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee.
According to Secretary of Commerce Penny Pritzker, the function of the committee is to “provide consensus advice on the development and administration of programs and policies to expand U.S. renewable energy and energy efficiency exports.”
“It is truly an honor to be selected by Secretary Pritzker to serve on the Renewable Energy and Energy Efficiency Advisory Committee,” said Davis. “I look forward to having a seat at the table and helping Secretary Pritzker ensure that our global trading partners understand and appreciate the benefits of U.S. produced ethanol in reducing consumer gasoline prices, improving energy diversity and security, and addressing climate change.”
Davis recently participated in a trade mission to China, led by USDA Under Secretary Michael Scuse, to promote U.S. ethanol and co-products and strengthen the trade relationship between the two countries. Last year, she joined a similar trade mission, led by the U.S. Grains Council, to South Korea and Japan. The RFA board of directors has made opening new markets for ethanol and distillers dried grains with solubles (DDGS) abroad a top priority, and Davis’ appointment to this prestigious advisory committee reflects that commitment.
In a recent blog post authored by Geoff Cooper, senior vice president of the Renewable Fuels Association (RFA), the American Petroleum Institute (API) recently released a study that argues that the fracking boom has led to dramatically lower prices for crude oil and refined products between 2008-2013. Cooper wrote that the study suggests that increased domestic production of crude oil, natural gas liquids (NGLs) and lease condensate from fracking has already extended U.S. supplies and helped to lower gas prices.
The study finds that every 1 million barrels/day of new supply reduces consumer prices for petroleum products between $0.06-0.20 per gallon. Cooper writes that according to economics more supply generally results in lower prices, in this case there are two problems with API’s rationale.
- Problem 1: Global demand for petroleum products continues to grow faster than global supply. EIA data show global production of crude oil, NGLs and condensate grew by 4.1 million barrels/day between 2008 and 2013. But global consumption of those products ramped up by 5.4 million barrels/day over the same period. Thus, demand gains outstripped supply gains by more than 30%.
- Problem 2: When energy economist Phil Verleger and researchers at Louisiana State University, Iowa State University, University of Wisconsin, the Department of Energy, and others separately showed that extending the U.S. gasoline supply with ethanol leads to lower pump prices, Big Oil defiantly screamed “NOT SO!” Verleger found that consumer paid $0.50-$1.50 per gallon less for gasoline in 2013 because of ethanol’s extension of the fuel supply. His conclusion corroborated results from Iowa State/University of Wisconsin that showed consumers saved up to $1.09 in 2012 due to ethanol’s aggregate effect on gasoline supplies.
Cooper ends his article by asking the question, “So, which is it API? Does adding volume to the fuel supply reduce prices, or doesn’t it?”
Today the Chicago City Finance Committee is considering an amended ordinance that according to Alderman Ameya Pawar, one of the bill’s co-sponsor, will ensure Chicago motorists will have a choice at the pump. The “Chicago Clean Air Choice” ordinance would enable retailers to offer drivers E15 fuel.
“Through the ordinance the City of Chicago will once again help lead the way in cleaning up the environment by reducing greenhouse gas emissions and other toxic carcinogens in the air,” said Alderman Pawar. In his remarks he was referring to the Chicago City Council’s actions in 1984 that banned leaded gasoline in the city and its 2000 action where the Council banned various toxic additives.
Co-sponsor Alderman Anthony Beale, added that the ordinance has economic and security implications. “By reducing our dependence on fossil fuels by increasing ethanol usage, this ordinance is supporting a renewable fuel that is grown in America, keeping American dollars and troops at home, instead of sending them overseas.”
The original ordinance was introduced last summer. The enhanced ordinance includes an exemption of all filling stations selling less than 850,000 gallons of fuel per year and a 360 day phase in.
The Illinois biofuels industry will be reading about its history in a book. Assistant Professor Jeffery T. Manuel, who teaches at Southern Illinois University Edwardsville (SIUE), is teaming up with NCERC at SIUE to write the book. He works in the Department of Historical Studies and his biofuels history project was selected for a faculty fellowship award. The Center’s faculty fellowship program is sponsored by the Illinois Corn Marketing Board to foster collaborative research between the NCERC and the University community.
“Farmers, researchers, business leaders, politicians, and many others have been working to build Illinois’ biofuels industry for decades,” said Manuel. “This is an important but overlooked aspect of the state’s agricultural and business history. Fuel alcohol has been suggested as a promising alternative to oil and gas for over a century. My research asks why Americans have repeatedly turned to alcohol fuel as an alternative energy source and why earlier efforts to promote alcohol fuels were unsuccessful.”
Manuel said his work will include recorded, in-depth interviews of key players in the biofuels industry. The interviews will be archived at the Abraham Lincoln Presidential Library in Springfield as part of the Agriculture in Illinois oral history collection.
“We truly appreciate the Illinois Corn Growers’ support of this collaborative relationship, and we are excited to partner with Dr. Manuel on his project,” said NCERC Director John Caupert. “The biofuels industry has a long and fascinating history, with deep roots in Illinois. Dr. Manuel’s work will shed light on the industry’s evolution, and demonstrate the resilience and innovation of the industry’s past and present pioneers.”
Manuel added, “I believe my research will add a valuable historical perspective to SIUE’s existing strengths in biofuels research. I hope that SIUE can become a world leader in a multidisciplinary study of biofuels as we work to create this valuable record for the general public and future researchers.”
According to Quanzi Li, the greatest barrier to producing biofuels is from stubborn plant cell walls that resist being broken down into biofuel ingredients. Li is the lead author of a paper published in Plant Biotechnology Journal about North Carolina (NC) State’s Forest Biotechnology Group biofuel research progress. Cell walls contain desirable cellulose and hemicellulose, which is “covered up” with lignin, the substance that contributes to the strength of wood but gets in the way of biofuel production.
In the case of wood, the lignin must be removed and then the resulting cellulose is converted to ethanol. Production begins with an expensive pretreatment, followed by enzyme use to release the sugars that can be fermented to produce ethanol. Li and her team are focusing on simplifying the process in various ways.
NC State’s team has created genetically modified trees with reduced lignin content. “Normally when you reduce lignin, plant growth is negatively affected, which also reduces biomass production,” explained Li. “However, we now know that we can produce transgenic plants with strong cell walls and normal development but much less lignin.”
Fast-growing trees with high energy content could grow on marginal land without disrupting crop production. NC State has worked extensively with black cottonwood (Populus trichocarpa). Forest Biotechnology Group researchers in the College of Natural Resources have developed engineering models that predict how 21 pathway enzymes affect lignin content and composition, providing the equivalent of GPS directions to guide future research.
This comprehensive approach, which involves genes, proteins, plant chemical compounds and mathematical models, fits into a systems biology perspective that’s the key to future breakthroughs, Li said. She added, “Progress has been made in many areas, but we still lack a complete understanding of how the cell wall is formed. We have to have a better idea of the factors that control its formation to produce better biomass for biofuels.”
They say that everything is bigger in Texas so it’s appropriate that one of the largest E15 promotions of the year will be held this weekend about the benefits of American Ethanol for NASCAR fans at the Texas Motor Speedway.
“We have done 12 major promotions this year and have exposed millions of NASCAR fans to the performance and environmental benefits of Sunoco Green E15, but there is a lot of excitement surrounding this event,” said Jon Holzfaster, chairman of the National Corn Growers Association’s NASCAR Advisory Committee. “American Ethanol will be everywhere at this race, on the track, on the Midway, in the campgrounds and even on Big Hoss.”
Big Hoss is the world’s largest, high-definition LED video board, stands 218 feet wide by 94.5 feet tall and features 20,633.64 square feet of high-definition display. The 108 ton beast of a screen will be showing an American Ethanol video throughout the race.
American Ethanol partners Growth Energy and NCGA are joining forces with the Texas Corn Producers to make sure E15 fuel is prominently promoted at this high profile race.
The contest for the NASCAR Championship is now in its third round, and results in Texas and Phoenix will trim the field to only four drivers who will be eligible to win the Sprint Cup Trophy on November 16. As a result, tens of thousands of fans are expected to flock to the full weekend of races, with millions more tuning in on Sunday for the marquis Sprint Cup duel. Every car will be fueled with E15, and will sport the green American Ethanol fuel port as they have all season.
“EIA has adjusted its estimates of the energy content of retail motor gasoline in the Monthly Energy Review (MER) to reflect its changing composition. Ethanol and other oxygenates, which have lower energy content than petroleum-based gasoline components, have seen their share of total gasoline volumes increase from 2% in 1993 to nearly 10% in 2013. As a result, EIA’s estimate of motor gasoline’s average energy content per gallon has declined by about 3% over this 20-year period,” writes the Energy Information Administration (EIA) in its latest Monthly Energy Review.
To better understand the changes, a recent “Today in Energy” looked at how higher U.S. ethanol use has cut the average energy content of a gallon of gasoline.
The EIA explains that the adjustment of the average energy content per gallon of motor gasoline reflects changes in response to 1990 Clean Air Act (CAA) regulations that split the U.S. gasoline market into three segments: conventional, oxygenated, and reformulated. Oxygenated and reformulated gasoline was required to be blended with compounds that contained oxygen, such as MTBE (methyl tert-butyl ether) or ethanol. This Act was designed to reduce toxic air emissions in cities and it was successful. However, EIA states that while these additives reduced air pollution, they also resulted in lower heating value compared with conventional gasoline, translating to fewer miles per gallon, because they have lower energy density.
In response to these regulations, EIA began collecting separate data on the production of conventional, oxygenated, and reformulated gasoline in 1994. The gasoline heating value was estimated based on the relative volumes of conventional, oxygenated, and reformulated gasoline in the total motor gasoline product supplied to the United States. Continue reading
A group that represents the producers and supporters of ethanol who feed the world and fuel America is showing its commitment to the future of agriculture. Growth Energy announced a multi-year commitment and new partnership with the National FFA Organization to build on critical projects that prepare today’s students to become tomorrow’s leaders in American agriculture, starting with teacher and student workshops presented by Growth Energy this week at the 87th National FFA Convention & Expo in Louisville, Kentucky.
“Growth Energy is thrilled to help sponsor several important programs for FFA, including expanded opportunities to continue to educate FFA’s members on critical issues such as the important role that biofuels and energy play in American agriculture. Additionally, together, we will continue to build a robust networking system to attract new agricultural teachers and highlight the opportunities FFA members have as they enter the workforce. Ultimately, this comes down to investing in our most valuable resource —tomorrow’s leaders of American agriculture,” stated Tom Buis, CEO of Growth Energy.
Specifically, the Growth Energy partnership will focus on assistance in supporting the Curriculum for Ag Science Education (CASE), as well as a personalized career exploration and development resource called “My Journey.” Furthermore, Growth Energy will also support the TeachAg program in efforts to attract more teachers for the enhanced education of FFA members. Additionally, Growth Energy will be leading select National FFA Convention sessions and providing support for FFA during their Washington, D.C. leadership conference.
“FFA is critical to the future of American agriculture. As our nation’s farmers become more productive and efficient, it is important that the next generation learns the best ways to provide both food and fuel while understanding the significance of being a true steward of the land and ensuring sustainable farming for generations to come,” added Buis.
Buis added that he was an FFA member, as was Jeff Broin, the co-chairman of Growth Energy’s Board of Directors. They called the programs and services FFA provides “immeasurable” and a preparation for students “for the challenges of tomorrow,” while also fostering leadership, innovation and stewardship of the land.
Robert Baker of Sue City, Missouri has won the 2014 Growth Energy Individual Membership Sweepstakes sponsored by New Holland. His prize included 200 hours of usage of a CR8090 combine with a New Holland Twin Rotor CR8090 combine corn head for the 2014 harvest season.
“I am very excited, and I have a son and grandson that are more excited than me because they get to run [the combine],” said Baker.
Baker is a farmer who has invested in the Macon, Missouri, POET Biorefining plant, and regularly provides feedstock. The 14-year-old plant gained national coverage in 2010 when President Obama visited to learn more about ethanol production and gave a speech discussing the ability of ethanol to “contribute to our clean energy future”.
“We are proud to support a farmer who works so hard every day to grow crops to help feed the world and fuel our nation,” said Growth Energy CEO, Tom Buis. “Our members are working hard to revitalize our rural economies, create new jobs and ensure our nation will have a sustainable and secure energy future. This sweepstakes was part of a larger effort to continue to build grassroots support for biofuels across the country. Our growing grassroots advocates, such as Mr. Baker, help promote our industry and ensure that lawmakers in Washington understand the important role the RFS and biofuels play across America’s heartland. ”
The Growth Energy Individual Membership Sweepstakes offered all new or renewing individual members a chance to win either a NASCAR ticket package or usage of a New Holland combine. The total prize package for the combine is valued at $35,584.
Steve Murphy, General Manager at POET Biorefining – Macon, added, “The economic impact of the ethanol industry here in Missouri is undeniable and what we do here at POET goes far beyond the production process. As the first ethanol plant in the state of Missouri, we are proud of the added value our facility brings to producers and this community. However, we wouldn’t be able to offer consumers cheaper and cleaner choices at the pump if it weren’t for producers like Robert. All of us at POET Biorefining – Macon sincerely thank Robert for his continued support and extend him our congratulations.”
Many of the international teams visiting the United States last week for the 2014 Export Exchange also participated in tours before and after the event to see ethanol plants and farms across the Midwest.
Badger State Ethanol in Wisconsin had the honor of hosting a team of buyers from the Kingdoms of Saudi Arabia and Jordan. The KSA/Jordan team included companies representing the major dairy and poultry companies and major importers of feed grains in both countries and have been buyers of DDGS in the last couple of years.
Held every other year by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA), Export Exchange brings together more than 200 international buyers with U.S. sellers of corn, sorghum, barley, distiller’s dried grains with solubles (DDGS), corn gluten meal and corn gluten feed. Over the course of three days of events and the pre- and post-tours, these individuals not only do business directly but also make connections to facilitate future sales.
“This year’s Export Exchange was a resounding success,” said RFA president Bob Dinneen, pictured here with USGC president Tom Sleight. “In addition to new business agreements, it is my hope that attendees from all across the world will return home with a better understanding of international grain markets, domestic supply and demand of DDGS and coarse grains, and the current political landscape.”
Americans United for Change (AUC) is saying Iowa has become the latest victim of a Big Oil spill. According to the organization it was reported that Koch brothers-affiliated Super PAC is saturating Iowa’s airwaves with a dishonest attack ad on Iowa Senate hopeful Joni Ernt’s behalf.
In the words of Americans United, “Call it a friend doing a friend a favor, and expecting a big favor in return”.
Not too long ago Ernst was caught on tape praising the billionaire oil barons for launching her career “trajectory” beyond “a little known State Senator”. AUC say the anti-ethanol Koch family and donor network has funneled tens of thousands of dollars into her campaign, especially after she professed her ‘philosophical opposition’ to the Renewable Fuel Standard (RFS) despite the fact it supports nearly 75,000 Iowa jobs. That was music to the ears, says AUC of the entire oil industry which is trying to put their cleaner, cheaper ethanol competition out of business – as was Ernst’s campaign declaration that: “Joni actually believes that when you spend money, you should get something in return”.
So what do the Koch brothers expect in return for their ‘trajectory’ launching investment in Ernst’s political future? According to new report from Environment & Energy Publishing, Koch Industries has spent nearly $9.5 million on its advocacy operations so far this year. “…That’s a significant hike from the almost $8 million that the oil and gas giant spent on lobbying at this point last year.” And according to the latest U.S. Senate lobbying reports filed under the Lobbying Disclosure Act of 1995, two of the top legislative priorities that the Koch Industries lobbied for included the Renewable Fuel Standard Repeal Act (S.1195) and the Corn Ethanol Mandate Elimination Act of 2013 (S.1807).
“The anti-ethanol Koch brothers are counting up all the favors they’ve done for their friend Joni Ernst, and it’s approaching the million mark,” says Jeremy Funk, communications director for Americans United for Change. “And they’re not the type of guys who forget about it. Would Exxon Ernst be able to say ‘no’ to her big oil friends when they call in a favor that runs counter to Iowa’s economic interests? Would she look the other way when the Kochs spend another $10 million lobbying the Senate to kill the RFS and Iowa jobs? With stakes so high for Iowa’s future, Ernst’s loyalties shouldn’t be this big of a question mark – but unfortunately they are.”