Ethanol Report on 20th Ethanol Conference

rfa-nec-15The Renewable Fuels Association’s 20th Annual National Ethanol Conference (NEC) with the theme of “Going Global” is just around the corner now, coming up February 18-20, 2015 at the Gaylord Texan Resort and Convention Center in Grapevine, Texas.

The theme will hone in on how important export markets are to the future growth and financial health of the ethanol industry, particularly in light of the challenges being faced to fully implement the Renewable Fuel Standard (RFS) and grow the domestic industry.

ethanol-report-adIn this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen talks about the upcoming 20th NEC and how the industry has changed in 20 years.

Ethanol Report on 20th Ethanol Conference

Protec Opens E15 Station in Georgia

protectlogoProtec Fuel has joined with Mountain Express to make E15 available to drivers in the greater Atlanta region. Mountain Express-Quick Stop is located in Marietta, GA and the Mountain-Express Food Mart in Greensboro, GA.

With the new E15 addition, the state now has 16 E15 locations.

“We are thrilled to see E15 continue to expand on America’s eastern seaboard,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “E15’s expansion continues — reaching 16 states today — despite the misinformation being spread by Big Oil and its friends. We expect additional stations in more states to follow Georgia’s example and offer drivers low-cost, environmentally-friendly E15.”

Protec has been a country leader in bringing E15 to drivers. The ethanol blend is approved for vehicles manufactured after 2001. The ethanol industry stresses that when consumers are given choice, they choose ethanol blends, such as E15 at the pump.

“I would like to extend congratulations on behalf of Growth Energy and its members to Protec Fuel and to Mountain Express for their efforts to offer consumers a choice of homegrown, renewable fuels that help reduce harmful emissions and provide consumers with a choice and savings at the pump,” said Tom Buis, CEO of Growth Energy.

Buis added, “Protec and Mountain Express are helping pave the way in Georgia for consumer choice and savings. By offering a higher octane fuel for less, they are not only gaining a competitive edge, but they are serving their consumers who want to support cleaner burning, homegrown fuels.”

Former USTR to Keynote Ethanol Conference

kirkFormer U.S. Trade Representative Ron Kirk will be the keynote speaker at the upcoming National Ethanol Conference (NEC) in Grapevine, Texas.

Renewable Fuels Association (RFA) president and CEO Bob Dinneen says it’s appropriate for Ambassador Kirk to speak at the conference with the theme of Going Global. “As we look to new horizons and expand into new markets, Mr. Kirk gives us a peek behind the curtain of world markets and trade relations,” said Dinneen. “His valuable insight will help shine a spotlight on new opportunities for American-made biofuels and co-products all across the globe.”

rfa-nec-15Ambassador Kirk was appointed by President Barack Obama as the United States Trade Representative and served from 2009 to 2013. Born and raised in Austin, Texas, Kirk has close ties to the state as he gained his undergraduate and law degrees at Austin College and the University of Texas School of Law respectively. He joined Sen. Lloyd Bentsen’s staff before rising to the position of Texas Secretary of State and eventually becoming the Mayor of Dallas.

The 20th annual NEC will take place Feb. 18–20 and Kirk is scheduled to speak at 2:45 p.m. on Thursday, Feb. 19. Also at the conference, RFA’s General Counsel Ed Hubbard will moderate a panel titled “Going Global: Building Ethanol Demand Internationally.” The panel will feature Eco-Energy’s Pedro Paranhos, Lakeview Energy’s Jim Galvin, Henrique Pacini of the United Nations Conference on Trade and Development, the USDA Foreign Agricultural Service’s Mike Dwyer, and ePURE’s Robert Wright.

Registration and other information about the National Ethanol Conference can be found here.

Retailers Expand E15 Availability

sheetzPennsylvania-based convenience store and gas station chain Sheetz has announced that 60 of its locations in North Carolina will offer 15% ethanol blended fuel (E15) by the spring of 2016.

Growth Energy CEO Tom Buis says the company has over 400 locations across Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina. “Sheetz is a well-known leader in the fuel retail business and their decision to offer E15 shows they are in tune with an ever changing marketplace where consumers are demanding higher performance, lower cost renewable fuels grown right here at home,” said Buis.

“This is great news for the nation’s corn farmers who have been promoting the benefits of ethanol blended fuel for more than 30 years,” said National Corn Growers Association president Chip Bowling, a farmer from Maryland. “This is a fantastic development for the rural economy and consumers who want a real choice in fuel.”

Renewable Fuels Association president and CEO Bob Dinneen notes
that the announcement comes on the heels of E15’s expansion into 15 states. “It’s invigorating to see a major North Carolina retailer like Sheetz actively decide to do what is best for their consumers by giving drivers access to additional fuel options,” said Dinneen. “Sheetz clearly sees the benefits of E15 and it is my hope that all other retailers in North Carolina will follow Sheetz’s exemplary example.”

Also, Miami-based CR Caraf Oil is opening the first E15 pump in South Florida this week, working in partnership with Protec Fuel.

Keystone Amendment Targets Corn Ethanol

An amendment to the Keystone pipeline bill would eliminate corn ethanol from the Renewable Fuel Standard (RFS), a move that ethanol industry groups say would set U.S. energy policy back by decades.

The amendment was offered
by Senators Dianne Feinstein (D-CA), Pat Toomey (R-PA) and Jeff Flake (R-AZ) on the premise that corn ethanol “drives up the cost of everything from gasoline to groceries.”

mess-rfs“The fact of the matter is that corn is less expensive today than when the RFS was passed in 2007,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. “There is simply no truth to the notion that ethanol has driven up the price of food. In fact, the UN concluded that food prices are driven more by the price of energy than the cost of commodities. To that point, ethanol has been less expensive than gas for the better part of the past four years and has helped reduce consumer pain at the pump.”

“This amendment is an unnecessary solution to an imaginary problem,” Dinneen added. “If approved, it would set our nation’s energy, economic, and climate agenda back decades.”

“This amendment would eviscerate the RFS – the most successful energy policy enacted in the last 40 years,” Growth Energy CEO Tom Buis said. “If this amendment was adopted, it would embrace the status quo of our dependence on fossil fuels and foreign oil, concede we no longer are serious about reducing greenhouse gas emissions and seek to pursue a policy that would result in massive upheaval and job loss in today’s booming rural economy.”

The amendment was introduced in the Senate on Friday.

Ethanol Producers Meet RFS without Final Rule

RFANewlogoThe latest data from the Environmental Protection Agency shows that ethanol producers met the 2014 statutory requirements under the Renewable Fuel Standard (RFS) without a final rule, according to the Renewable Fuels Association (RFA).

RFA president and CEO Bob Dinneen says RIN generation data just released by the EPA show that 2014 volume obligations expected by Congress could have easily been met, and that there was no reason for the RFS waiver proposed – and later rescinded – by EPA.

According to EPA, 14.34 billion “renewable fuel” RINs were generated in 2014, almost perfectly in line with the statutory requirement of 14.40 billion. When combined with surplus RINs carried over from previous years, total renewable fuel RIN stocks are estimated to be well over 16 billion. While some small portion of the 2014 RINs generated will be retired for exported volumes, the data clearly show that compliance with statutory volumes could have easily been achieved.

“Had the Agency just implemented the statute as written, there would have been no drama,” commented Dinneen. “As EPA and the White House finalize the 2014 rule and turn their attention to 2015 and 2016, this data sends a strong message that the U.S. ethanol industry is up to the task. We can and will deliver the volumes established in the statute, provided that EPA enforces the law as written.”

In November 2013, EPA proposed to reduce the 2014 requirement for renewable fuel from the statutory level of 14.4 billion gallons to just 13.01 billion gallons. Today’s data show that RIN generation outpaced EPA’s initial proposed volume by more than 10 percent.

Today’s data also show that RIN generation for cellulosic biofuel — long labeled by oil companies as “phantom fuels” — was nearly double the volume proposed by EPA in November 2013. The Agency proposed a cellulosic biofuel requirement of 17 million gallons, yet RIN generation finished the year at nearly 33 million.

NEC Scholarship Award Winner Announced

rfa-nec-15The Renewable Fuels Association and Renewable Fuels Foundation are proud to announce the student scholarship award winner for the 20th annual National Ethanol Conference: Going Global next month in Grapevine, Texas.

This year’s scholarship winner is Laís Thomaz of Brazil, who received her master’s degree in international relations in 2012 from San Tiago Dantas, a graduate program supported by three of Brazil’s premier universities. Her dissertation, which focused on the role of advocacy groups in the shaping of ethanol trade policies, was published as a book by Brazil’s Editora UNESP. Her research previously won the Top Ethanol Award promoted by the Brazilian Sugarcane Ethanol Industry Association (UNICA). She is currently a Ph.D. candidate and a Visiting Scholar in the Department of Government at Georgetown University.

The RFA/RFF scholarship provides students enrolled in higher education with complimentary registration at the conference, giving scholarship recipients the chance to connect with hundreds of leaders, policymakers, and experts associated with the renewable fuel industry. Only students who focus on renewable fuels in their studies and intend to pursue a career in the industry are eligible to receive the scholarship. This is the sixth consecutive year in which this scholarship has been made available to students.

US Ethanol Exports Hit High, DDGS Drop in Nov.

RFANewlogoExports of U.S. ethanol hit a nearly three-year high, while shipments of dried distillers grains (DDGS) slipped in November of 2014. In a piece from Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper, the biggest share of the 90.9 million gallons of ethanol, a 15 percent increase from just a month earlier, went to India and a couple of customers in the Western Hemisphere.

India was the top destination for U.S. product in November, receiving 27.6 mg, or 30% of total shipments. Canada and Brazil were other top customers for the month. Year-to-date exports through November stood at 760.2 mg, implying an annualized total for calendar year 2014 of 829.3 mg.

In a reversal from historical trends, shipments of undenatured fuel ethanol accounted for the majority of November exports. Undenatured fuel ethanol exports totaled 65.9 mg, an all-time monthly record and up 143% from October. India was the leading importer of undenatured product at 27.6 mg, followed by Brazil at 17.0 mg and South Korea at 6.1 mg. The volumes shipped to India and South Korea represented the largest-ever monthly volumes sent to those markets. The Philippines (5.4 mg) and Nigeria (3.3 mg) were other top destinations for undenatured fuel ethanol…

November exports of U.S. distillers dried grains (DDGS)—the animal feed co-product manufactured by dry mill ethanol plants—slid 19% from October to their lowest monthly level since March 2013. The decrease in November DDGS exports was reflective of the continued collapse of the Chinese market. Total DDGS exports for the month were 631,721 metric tons (mt), with Mexico (127,189 mt), Turkey (103,331 mt), and Canada (64,186 mt) again occupying the top three positions. After importing an average of 539,000 mt per month from March to August, China took in just 4,689 mt in November. Still, year-to-date DDGS exports stood at 10.59 million mt, meaning the U.S. achieved a new annual export record in 2014.

At the same time, U.S. ethanol imports hit a five-month high in November, but RFA officials say the numbers were still relatively low at just 4.9 million gallons. Year-to-date 2014 imports through November were just 72.4 million gallons, implying an annualized total of nearly 79.0 million gallons.

Oregon Moves Forward with Clean Fuels Program

or-deqThe Oregon Environmental Quality Commission this week approved phase two of the Oregon Clean Fuels Program, which seeks to cut greenhouse gases by lowering the carbon content in Oregon transportation fuels. The new rules, developed by the Oregon Department of Environmental Quality, will go into effect February 1.

RFANewlogoThe Renewable Fuels Association (RFA) is pleased that the commission decided to exclude indirect emissions when calculating the carbon intensity of various fuels regulated under the state’s Clean Fuels Program (CFP). “Oregon officials used common sense and good judgment in proposing and approving the framework for Phase 2 of the CFP. All fuels have indirect carbon effects,” said RFA president and CEO Bob Dinneen. “Oregon did the right thing by taking a careful approach to indirect effects and not putting the policy cart in front of the science horse. We hope other jurisdictions considering LCFS-like policies will follow the lead of Oregon and British Columbia when it comes to carbon intensity scoring.”

In its recommendations to the Commission, Oregon’s Department of Environmental Quality (DEQ) reported that “Recent data has shown that both food (human and animal) and fuel production has increased while the amount of land farmed has stayed constant.” Thus, DEQ proposed to exclude ILUC emissions for now and resolved to “…continue to monitor the status of technical work on this issue and will determine whether to recommend including ILUC and other indirect effects in a subsequent rulemaking, as appropriate.”

The Oregon CFP is similar to the California Low Carbon Fuel Standard (LCFS) in that both programs aim for a 10 percent reduction in the carbon intensity (CI) of transportation fuels used in the state over a 10-year period. However, Oregon’s approach bases CI estimates only on verifiable, direct emission while the California LCFS uses predictive economic modeling scenarios to penalize certain biofuels for theoretical “indirect land use change” (ILUC) emissions, while assuming no other fuels induce any indirect GHG emissions at all, according to RFA.

Dinneen also pointed out that new real-world global land use data is casting doubt on scenarios used by California for the LCFS that penalize biofuels like ethanol.

Bill Introduced to Re-test E15 – Again

Anti-ethanol legislation has already been introduced this very first week of the brand new 114th Congress.

sensenbrenner-2On Tuesday, Congressman Jim Sensenbrenner (R-WI) introduced legislation to require additional testing for 15% ethanol blended fuel (E15), a bill he has repeatedly introduced over the past four years.

Renewable Fuels Association president and CEO Bob Dinneen says the bill would hinder the growth and expansion of E15 and would simply repeat extensive studies that have already been done on the higher-level fuel blend. “The study Mr. Sensenbrenner seeks has been done. The Environmental Protection Agency and the Department of Energy undertook the most exhaustive analysis ever conducted prior to approving the 211(f) fuel waiver. But even more significantly, E15 has been driven more than 100 million miles by consumers without a single reported case of engine failure or performance problems,” said Dinneen. “The rest of the world has moved beyond the hyperbolic angst about E15 and has accepted the fact that higher level ethanol blends are good for consumers, good for air quality, and good for energy security. Mr. Sensenbrenner should as well.”

A recent RFA report found that nearly 70 percent of all new vehicles are approved by automakers for use of E15.

Ethanol Report Looks at Year Ahead

ethanol-report-adUnfinished business and much of the same old attacks on the RFS are likely to dominate 2015 for the ethanol industry.

In this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen takes a look at what he expects to be some of the big issues for ethanol in the year ahead.

Ethanol Report on Industry Outlook for 2015

Ethanol Report 2014 Year in Review

ethanol-report-adEvery year is interesting for the ethanol industry and 2014 was no exception.

Some of the highlights included record production and sales, healthy exports, and the commercial reality of cellulosic ethanol. The low point of the year was definitely the inability of the federal government to set volume obligations for 2014 under the Renewable Fuel Standard (RFS), leaving the industry in somewhat of a limbo.

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen takes a look back at some of the good news and bad news for the ethanol industry in 2014 and wishes us all a very happy new year.

Ethanol Report on 2014 Year in Review

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.”

Ethanol Report on RFS Anniversary

ethanol-report-adToday, December 19, marks the seventh anniversary of the signing into law of the Energy Independence and Security Act of 2007 which expanded the Renewable Fuel Standard (RFS).

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen remembers that day seven years ago and talks about its accomplishments so far and how EPA needs to move ahead with the law as written. He also comments on the report out this week from the Bipartisan Policy Center recommending changes to the RFS.

Ethanol Report on RFS Anniversary

RFA Refutes Univ of Minnesota Report on Ethanol

RFANewlogoThose who advocate for ethanol are refuting an academic report about the green fuel. The Renewable Fuels Association (RFA) is countering conclusions made by researchers at the University of Minnesota claiming that ethanol is more harmful to humans and the environment than gasoline. RFA examined the research, recently published in the “Proceedings of the National Academy of Sciences,” finding it ran counter to real-world data, contradicted current lifecycle modeling and research, and omitted key variables when determining the environmental impact of electric vehicles and gasoline, ultimately undermining the credibility of the study.

RFA notes that the paper’s conclusions “…stand at odds with real-world data showing decreases in ozone and PM2.5 concentrations…” and that “Data from 222 EPA sensing sites show that ozone and PM2.5 concentrations have trended downward during the period in which the use of ethanol-blended gasoline has dramatically increased.”

The RFA response goes on to show that “On a full lifecycle basis, the study’s results are contradictory to the results from the Department of Energy’s latest GREET model” and that “There is a substantial body of evidence proving that ethanol reduces both exhaust hydrocarbons and CO emissions, and thus can help reduce the formation of ground-level ozone.”

The study’s reliability is also called into question as it omitted key factors when reaching conclusions on the environmental impact of gasoline and electric vehicles. RFA points out that the University of Minnesota conclusion “…excludes NOx and SOx emissions associated with crude oil extraction, a decision that grossly underrepresents the actual lifecycle emissions impacts of gasoline.” RFA concluded, “Omitting key emissions sources from the lifecycle assessment of EVs and crude oil inappropriately skews the paper’s results for the overall emissions impacts of these fuels and vehicles.”

You can read all of the RFA’s response here.