China May Reopen Market for U.S. DDGs

distillers_grains_ Photo US Grains CouncilNews out this week that Chinese officials committed to Agriculture Secretary Vilsack that the ban on imports of U.S. distillers grains (DDGs) containing the MIR 162 trait will be dropped is being met with optimism by the ethanol industry.

“While we are still awaiting the official regulatory announcement from China regarding the approval of this policy, it is welcome news for America’s ethanol industry,” said Growth Energy CEO Tom Buis. “I would like to personally thank Secretary Vilsack for his leadership and steadfast commitment to ensuring a resolution to this issue. Additionally, the many hardworking professionals of the USDA and the USTR deserve praise for their dedicated work behind the scenes and for their persistence in working with their Chinese colleagues to re-establish market access for U.S. DDGs.”

“China has always been somewhat schizophrenic with our protein feed,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen in an interview today. “There are times when they desperately want it and can’t get enough of it, there are times when they will erect these mysterious trade barriers so that we can’t get our product in there … We think we may be getting through it now.”

According to the office of the U.S. Trade Representative
, one of the outcomes of the U.S.-China Joint Commission on Commerce and Trade meetings was in the area of agricultural exports related to biotechnology traits. “China announced that it would approve the importation of new biotechnology varieties of U.S. soybeans and corn ­… and also that it would pursue a regular dialogue with the United States focused on the benefits of the increased use of innovative technologies in agriculture, for both the United States and China.”

Iowa Lawmakers Honored for Support of Renewables

Three retiring state lawmakers in Iowa have been honored for “their unwavering support and leadership on renewable fuels.” The Iowa Renewable Fuels Association (IRFA) says the outgoing lawmakers were given the “Lifetime Champion of Renewable Fuels” award for their long, distinguished careers and steadfast support of renewable fuels.

IRFA President-elect Brian Cahill, former Sens. Nancy Boettger and Daryl Beall, and IRFA Executive Director Monte Shaw.

IRFA President-elect Brian Cahill, former Sens. Nancy Boettger and Daryl Beall, and IRFA Executive Director Monte Shaw.

“It’s bittersweet to see these distinguished individuals leave the state legislature after long, successful careers, and we wish them nothing but the best in the future,” stated IRFA Policy Director Grant Menke. “Their unwavering support and leadership on renewable fuels issues will be greatly missed, and we sincerely thank them for their enduring accomplishments.”

The Lifetime Champion of Renewable Fuels awards were given to:

State Senator Daryl Beall of Fort Dodge, Iowa. Sen. Beall was an enthusiastic supporter of renewable fuels who worked tirelessly to promote ethanol and biodiesel both inside and outside the state legislature.

State Senator Nancy Boettger of Harlan, Iowa. As a farmer, Sen. Boettger was a rock solid supporter of renewable fuels who was critical in winning support for Iowa’s renewable fuels policy, including tax credits for retailers offering higher ethanol and biodiesel blends and fuel dispensing equipment grants for renewable fuels upgrades.

State Senator Hubert Houser of Carson, Iowa. Sen. Houser was also instrumental in passing the framework of today’s renewable fuels policy in Iowa, and was active in the creation of Southwest Iowa Renewable Energy (SIRE), an ethanol production facility in Council Bluffs, Iowa.

With 43 ethanol refineries producing more than 3.8 billion gallons annually and 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually, Iowa is the nation’s renewable fuels leader.

USDA Looks to the Forests for Renewable Energy

usda-logoHarvesting biomass from forests is not only helping those forests’ health, it’s helping the country achieve energy independence. This news release from the U.S. Department of Agriculture says the Biomass Crop Assistance Program (BCAP) has removed 200,000 tons of biomass that could have been a fire risk and was turned into biofuels.

“This initiative helps to retrieve forest residues that are a fire risk, but otherwise are costly to remove,” said [Agriculture Secretary Tom] Vilsack. “In just three months, working with private partners across the country, the program helped to reduced fire, disease and insect threats while providing more biomass feedstock for advanced energy facilities.”

The U.S. Department of Agriculture’s (USDA) Farm Service Agency administered the program earlier this year. Eligible farmers, ranchers or foresters participating in BCAP received a payment to partially offset the cost of harvesting and delivering forest or agricultural residues to a qualified energy facility. Up to $12.5 million is available each year for biomass removal.

This past summer, 19 energy facilities in 10 states participated in the program.

RFA Submits Comments on Animal Feed Rule

RFANewlogoThe Renewable Fuels Association (RFA) submitted comments to the Food and Drug Administration (FDA) yesterday on the supplemental rulemaking proposal outlining best practices for the regulation of animal food under the Food Safety Modernization Act (FSMA). The act outlines regulations for animal feed, which includes the ethanol co-product dried distillers grain.

RFA submitted comments earlier this year following the initial proposed rule noting that animal feed would be unnecessarily regulated in a similar fashion to human food. RFA praised the FDA for addressing this concern in its updated version, noting that the “revised CGMPs (current good manufacturing processes) in the supplemental proposed rule appear more applicable to the animal feed industry and appear to provide more flexibility for the wide variety of the animal feed facility processes covered.”

However, RFA raised concerns with additions to the rule that would implement “…product and environmental testing programs, supplier approval programs, and verification programs that were not in the initial proposed rule language.” The comments stress that an individual plant “…should be provided the flexibility to determine its own needs and compliance strategy.” RFA also noted that “If applied in a prescriptive and indiscriminate way, these programs can add unnecessary cost burdens and divert resources away from the effective practices that ethanol producers currently use to assure safe, high quality co-products.”

Read RFA comments here.

EPA Official Testifies About RFS Management

epa-mccabe-hearingEnvironmental Protection Agency (EPA) Office of Air and Radiation Acting Assistant Administrator Janet McCabe testified before a House oversight subcommittee today on the agency’s management of the Renewable Fuel Standard (RFS) program.

“The EPA recognizes that the delay in issuing the 2014 standards has exacerbated uncertainty in the market for both renewable fuel producers and obligated parties,” said McCabe in her prepared remarks. “Issuing rules every year has proven to be a significant implementation challenge, particularly in the last several years as cellulosic biofuels have continued to face challenges in scaling up to commercial production and the fuel pool has become saturated with E10, raising concerns about the E10 blend wall.”

Facing questioning by lawmakers about the delay and EPA’s pledge to get the standards for 2014, 2015 and 2016 released some time next year, McCabe was unable to provide any time frame when that might be accomplished. Subcommittee Chair James Lankford (R-OK) expressed his doubt EPA can get it done. “My concern is that this is going to come out November 30 of 2015 and we’ll literally have two years in a row that we will not have anything,” he said. “It cannot take that long to promulgate a rule.”

Biofuels organizations reacted to McCabe’s testimony. “While it’s important for EPA to put the annual RFS rulemaking process back on schedule, it’s much more important for the Agency to get the RFS right,” said Brian Jennings with the American Coalition for Ethanol (ACE). “We look forward to working with EPA to ensure they use their authority to hold oil companies legally responsible for making cleaner and less expensive renewable fuel choices, such as E15 and E85, available to consumers as they issue the final 2014 rule, and RFS proposals for 2015 and 2016.”

Growth Energy CEO Tom Buis also stressed the importance of EPA getting the methodology right. “The EPA’s proposed rule was flawed from the beginning. There was no way the methodology in the proposed rule would ever work, as it went against the very purpose and policy goals of the RFS,” said Buis. “Hopefully, the EPA can get back on track, establish certainty among stakeholders and implement the RFS as it was originally envisioned.”

Click here to watch the hearing.

Biodiesel Industry Wants Longer Tax Extension

nbb-logoBiodiesel producers are pleased that the U.S. House of Representatives voted overwhelmingly to reinstate the biodiesel tax incentive as part of the tax extenders package passed on Wednesday, but they would prefer a longer term deal to provide more certainty for the industry.

“While we appreciate a one-year extension, we are urging Congress to continue pressing for a longer-term policy that can afford this industry the certainty needed to invest and grow,” said National Biodiesel Board VP of Federal Affairs Anne Steckel. “Biodiesel businesses across the country are poised to expand their operations, hire new workers and build new infrastructure, but we need forward-looking policy.”

She added that the deal passed Thursday is only good until the end of this year, so the biodiesel tax incentive expire once again on January 1,for the fourth time in six years. “It is very difficult to run a business with that kind of uncertainty,” Steckel said.

“The biodiesel incentive is proven to create jobs and economic activity, and it pays tremendous dividends in terms of reducing costly pollution and improving our energy security as well,” said NBB Board Chairman Steven J. Levy, managing director at Sprague Operating Resources. “It is a successful policy that is working so there is no reason to have this kind of perpetual uncertainty.”

The House voted 378-46 Wednesday night to approve HR 5771, setting up a potential Senate vote in the coming days.

Oregon Aims to Cut Biomass Tax Incentives

OregonFlagBiomass producers in Oregon could lose out on some production tax credits, if the state gets its way. This story from Oregon Public Broadcasting says the state’s Department of Energy proposed a change that reduces tax incentives for biomass facilities.

Matt Krumenauer, a senior policy analyst with the agency, said the tax program was intended to offset the costs of producing, collecting and transporting biomass.

“We’ve analyzed the program and found that those costs for animal manure are much less than similar production or collection costs for other types of biomass,” he said.

Krumenauer said the tax credit provides incentives that are sometimes 10-times higher for animal manure than for other types of biomass, such as wood.

The losses could total up to nearly $5 million a year, based on current credits being handed out. The change would have to be made by the state legislature and signed off by the governor.

Low Fuel Prompts Reminder Biodiesel Stretches Supply

IowaRFAlogoA sudden drop in temperatures is putting the squeeze on what is an already low fuel supply in some parts of the country, and that’s prompting a group to remind folks biodiesel can make fuel supplies last longer. On the heels of Iowa Gov. Terry Branstad’s emergency declaration that cold weather, coupled with pipeline and refining outages, is putting his state dangerously low on fuel, necessitating some short-term changes to shipping rules in Iowa, the Iowa Renewable Fuels Association (IRFA) is reminding the governor and all consumers that biodiesel could stretch tight diesel supplies being able to be blended at 5 to 20 percent levels.

“Given Gov. Branstad’s emergency proclamation, one of the best ways to help alleviate tight diesel supplies is to blend it with high-quality, homegrown biodiesel,” stated IRFA Executive Director Monte Shaw. “High-quality biodiesel blends ranging from B5 to B20 can be used and treated just as No. 2 diesel throughout the winter. Several Iowa biodiesel producers have supplies that can be shipped to a fuel terminal or jobber today.”

“I’m currently using B20 to push snow and keep my farm operation moving throughout the colder months,” stated Denny Mauser, a farmer from Early, Iowa and board member of Western Iowa Energy in Wall Lake, Iowa.

IRFA goes on to point out that not only will using biodiesel right now help alleviate the tight supply issues, but it will also support American jobs, energy security and a cleaner environment.

Brazilian Ethanol Producers Praise EPA Delay

unica1International ethanol interests are weighing in on the Environmental Protection Agency’s (EPA) decision to delay finalizing 2014 volume standards under the Renewable Fuel Standard (RFS) until next year. Brazilian Sugarcane Industry Association (UNICA) President Elizabeth Farina is glad to see the EPA step back from proposed advanced biofuel targets, a large portion of that fulfilled by sugarcane ethanol.

“In 2013, 15 percent of America’s advanced biofuels – 435 million gallons – came from Brazil, delivering at least a 50 percent reduction in emissions compared to gasoline. Slashing the 2014 renewable fuels standard target would have fundamentally threatened both America’s supply of low-carbon fuel and the Obama Administration’s emissions reduction goals.

The Brazilian sugarcane ethanol industry has collaboratively worked with the U.S. to lower emissions through the RFS for over seven years, and while we’re relieved this decision doesn’t roll back environmental gains made over that time, EPA has missed a golden opportunity to increase the volume of cleaner fuel flowing to American drivers.”

Farina went on to say she still encourages the EPA to publish the 2015 RFS targets as soon as possible so advanced biofuel producers have clarity on production targets before the season starts.

Iowa Ethanol, Biodiesel Makers Call for Tax Extenders

IowaRFAlogoEthanol and biodiesel producers in Iowa are joining in the growing chorus calling on Congress to extend some important tax credits. This news release from the Iowa Renewable Fuels Association (IRFA) says nine of the state’s advanced biofuel producers sent a letter to the entire Iowa Congressional Delegation encouraging the swift passage of a tax extenders package which includes provisions for biodiesel blending, cellulosic production, and accelerated depreciation, prior to final adjournment of the 113th Congress.

“Iowa’s entire congressional delegation has shown steadfast support for these important policies, and today we’re calling on them to take concrete steps to advance legislation extending these vital provisions that support energy security, American jobs, and a cleaner environment,” stated Western Iowa Energy Board Member Denny Mauser. “In the face of more than 100 years of preferential tax treatment for petroleum—a literal Century of Subsidies—these incentives keep advanced biofuel projects moving forward to the benefit of all Americans.”

The letter states, “It is absolutely critical to our industry that this Congress pass a tax extenders package, which includes provisions for biodiesel blending, cellulosic production and accelerated depreciation, prior to final adjournment.”

The letter goes on to point out the advantages the petroleum industry continues to enjoy in tax subsidies and says if Congress does nothing on the extenders package, the “U.S. will be left with a defacto petroleum mandate.”

Fly, Fight & Win Includes Electric, Biodiesel & Ethanol

U.S. Air Force tests first all-electric vehicle fleet in CaliforniaMy Air Force brethren are known for being able to fly, fight and win, and now, they’ll be doing it using electric vehicles, biodiesel and ethanol. This news release from the U.S Air Force says the Department of Defense’s first non-tactical vehicle fleet composed entirely of plug-in electric vehicles was unveiled at Los Angeles Air Force Base, California.

The rollout of the 42-vehicle fleet marks a milestone in the DOD’s demonstration of emerging technology and the vehicles will serve as a resource to the electrical grid when they’re not being driven.

“Everything we do to fly, fight and win requires energy, whether it’s aviation fuel for our aircraft or power to run the bases that support them,” said Secretary of the Air Force Deborah Lee James. “This vehicle-to-grid pilot is a great example of how Airmen are driving the Air Force forward and finding new and innovative ways to make every dollar count.”

The PEV fleet includes both electric and hybrid vehicles ranging from sedans to trucks and a 12-passenger van. The vehicles have the capability to direct power both to and from the electrical grid when they’re not being driven, known as vehicle-to-grid technology. Unique charging stations have been installed on Los Angeles AFB to support the vehicles’ V2G capability…

In addition to the PEV fleet in L.A., the Air Force is also investigating the benefits of other alternative fuel vehicles. More than 9,000 ethanol flex fuel vehicles are in the service’s inventory worldwide, along with 50 biodiesel fuel stations on its installations.

The Air Force plans to expand this demonstration project to Joint Base Andrews, Maryland, and Joint Base McGuire-Dix-Lakehurst, New Jersey.

USDA Looks to Get Ethanol from Kudzu

kudzu1It might be the scourge of the south, but kudzu could become the next feedstock for biofuels.

“When life gives you lemons, you make lemonade,” says Lewis Ziska with the U.S. Department of Agriculture’s (USDA) Agricultural Research Service (ARS). “One of the possible potential benefits of kudzu is the roots are high in starch, and it may be a potential biofuel.”

Ziska says the USDA is working with the University of Toronto and Auburn University to look at the potential of kudzu roots. Since the USDA certainly doesn’t want to promote the growing of the weed that has overrun so many places in the south, he believes harvesting kudzu from abandoned farmland and other areas where it’s growing unchecked and easily harvested could end up producing as much, or even more, ethanol from an acre of the weed they want to eliminate as would be produced from an acre of corn.

“What we think we could do is to take the existing kudzu and convert into a biofuel for a win-win,” Ziska says.

You can listen to Ziska’s remarks here: Lewis Ziska, USDA ARS

USDA Working on Producing Butanol as Biofuel

qureshiU.S. Department of Agriculture (USDA) researchers are working turning barley straw and corn stover into biobutanol. This article from USDA’s Agricultural Research Service (ARS) says the agricultural by-products could be a cost-effective feedstock for the green fuel.

Gallon for gallon, butanol has 30 percent more energy than ethanol and only around 4 percent less energy than a gallon of petroleum-based gasoline. [ARS chemical engineer Nasib] Qureshi has confirmed that both barley straw and corn stover can be converted to butanol via separate hydrolysis, fermentation, and recovery (SHFR) or by simultaneous saccharification, fermentation, and recovery (SSFR). In SSFR, releasing the plant sugars, fermenting them to butanol, and recovering the butanol are combined into a single operation that is performed in a single reactor.

In a recent study, Qureshi’s team used a process called gas stripping to “harvest” butanol fermented during SSFR. They obtained a final butanol yield that was 182 percent of the yield obtained from a control study that used glucose.

Using the same protocols, the scientists were able to ferment over 99 percent of the sugars in pretreated corn stover. This resulted in butanol yields that were 212 percent greater than yields observed from the controls, and 117 percent greater than the butanol yields from the barley straw.

In the corn stover-to-butanol process, the researchers are using vacuum technology instead of gas stripping to simultaneously recover butanol during fermentation. This new process released more than 97 percent of the stover sugars, making them available for fermentation.

Branstad, Nixon to Head Bipartisan Gov’s Biofuels Group

Two Midwest governors might be from other sides of the political aisle, but they are on the same page when it comes to ethanol and biodiesel. Republican Iowa Governor Terry Branstad and Democrat Missouri Governor Jay Nixon will lead the Governors’ Biofuels Coalition beginning in January 2015 as chairman and vice chairman, respectively.

IA Gov Branstad at Hearing in the Heartland Jan 23 2013“I look forward to working with Governor Nixon to advance the bipartisan work of the Governors’ Biofuels Coalition, as the production and use of biofuels increases family incomes in rural America, diversifies our nation’s energy portfolio, and enables consumer choice at the fuel pump, ” Governor Branstad said.

JayNixon“Thanks to our corn and soybean farmers, Missouri has long played a leadership role in the development and production of biofuels,” Governor Nixon said. “Missouri was one of the founding members of the Governors’ Biofuels Coalition, and the Coalition has played a major role in our nation’s energy policies, including the drafting and passage of the renewable fuel standards. I’m honored to serve as the next vice chairman of this organization, and will continue working to strengthen the energy independence of Missouri and our country.”

Outgoing chairman Gov. Pat Quinn, a Democrat from Illinois, says everyone has a stake in the game, from farmers to energy consumers.

Biodiesel Ingredient Maker Gets State, Fed Incentives

ia-flag1An Iowa company that will make a key ingredient for biodiesel is getting some important loans, loan guarantees and tax incentives from the state and federal governments. This article from the Mason City (IA) Globe Gazette says New Heaven Chemical will get $128,000 in state loans and $402,000 in tax incentives, along with the chance for a U.S. Department of Agriculture $5 million loan guarantee, for the company’s plant at the Manly Terminal.

The Manly plant will produce sodium methylate, which is used to turn fat and oil into biodiesel.

Completion is expected by the end of the year. Startup is set for January.

New Heaven’s plant will bring money into the county, [Worth County Supervisor Ken] Abrams said.

“It’s gonna get jobs and people here,” he said.

County officials are expected to sign the contract later this week.