EPA Denies RFS Waiver Request

The U.S. Environmental Protection Agency (EPA) today announced that the agency has not found evidence to support a finding of severe “economic harm” that would warrant granting a waiver of the Renewable Fuels Standard (RFS). The decision is based on economic analyses and modeling done in conjunction with the U.S. Department of Agriculture (USDA) and U.S. Department of Energy (DOE).

“We recognize that this year’s drought has created hardship in some sectors of the economy, particularly for livestock producers,” said Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation. “But our extensive analysis makes clear that Congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact.”

To support the waiver decision, EPA conducted several economic analyses. Economic analyses of impacts in the agricultural sector, conducted with USDA, showed that on average waiving the mandate would only reduce corn prices by approximately one percent. Economic analyses of impacts in the energy sector, conducted with DOE, showed that waiving the mandate would not impact household energy costs.

EPA found that the evidence and information failed to support a determination that implementation of the RFS mandate during the 2012-2013 time period would severely harm the economy of a State, a region, or the United States, the standard established by Congress in the Energy Policy Act of 2005 (EPAct).

EPAct required EPA to implement a renewable fuels standard to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. A waiver of the mandate requires EPA, working with USDA and DOE, to make a finding of “severe economic harm” from the RFS mandate itself.

This is the second time that EPA has considered an RFS waiver request. In both cases, analysis concluded that that the mandate did not impose severe harm. In 2008, the state of Texas was denied a waiver.

Pacific Ethanol To Extract Corn Oil At It’s Stockton Plant

Pacific Ethanol, Inc. announced it will implement corn oil separation technology at its Stockton plant, representing the second Pacific Ethanol plant to utilize the technology. In June 2012, the company announced the implementation of corn oil separation technology at its Magic Valley plant. The company has awarded Edeniq, a biomaterials and sustainable fuels innovator, with a contract for its patented OilPlus™ technology, which is expected to be implemented at the Stockton plant by the second quarter of 2013.

Neil Koehler, the company’s president and CEO, stated: “Corn oil is a high value co-product for the Pacific Ethanol plants, provides us with further diversification of our revenue streams and contributes additional operating income to the plants. Our Stockton plant is the second of our facilities to implement corn oil separation technology, and we expect to soon award contracts for our two other Pacific Ethanol plants.”

First Station in the Nation Begins Selling E15

For the first time in nearly three decades, American drivers can now choose a new fueling option at the pump.  The nation’s first E15 (15 percent ethanol/85 percent gasoline) gallons are being sold at the Zarco 66 “Oasis” station at 1500 E. 23rd Street in Lawrence, KS

A formal grand opening for the pumps will occur on Wednesday, July 18, 2012.

On June 8, 2012, the U.S. Environmental Protection Agency (EPA) gave final approval for the sale and use of E15 ethanol blends in light duty vehicles made since 2001.  This represents nearly two-thirds of all vehicles on the road and nearly three-fourths of all miles driven.

Given present market conditions, E15 will sell for less than E10 and gasoline not containing ethanol. More broadly, a recent study from the Center for Agriculture and Rural Development found the use of 13.9 billion gallons of ethanol in 2011 lowered average gasoline prices by $1.09 per gallon nationally and by $1.69 per gallon in Midwestern states such as Kansas. 

“Alternatives to gasoline are critically important to our nation’s energy future and Americans deserve to have a choice of cost-competitive fuel at the pump,” said Scott Zaremba, owner of Zarco 66 stations.  “With the help of the Kansas Corn Commission, East Kansas Agri-Energy, and the Renewable Fuels Association, we are pleased to be the first to offer consumers real choice at the pump in the form of E15 ethanol fuel.”

Zaremba, the incoming President of the Petroleum Marketers and Convenience Store Association of Kansas, blends Zarco 66 fuel options right at each of his stations.  Pumps offering E15 with the proper labeling will also be offering E10 and other ethanol blends via technology known as blender pumps.  These pumps allow consumers to choose the fuel option that is best for them and their vehicle.

“Ethanol is a vital component of our nation’s energy and economic strategy and moving to higher level ethanol blends like E15 just makes sense,” said Jere White, Executive Director of the Kansas Corn Commission and the first consumer to purchase E15 under the waiver granted by the EPA.  “Since the days of gasohol, ethanol has been an increasingly important part of our nation’s fuel supply.  America’s farmers, together with America’s ethanol producers, have risen to the challenge and provide a safe, reliable, and growing source of renewable fuel.  E15 and increasingly higher ethanol blends will reduce our dependence on imported oil, create domestic jobs that cannot be sent overseas, and leave a cleaner environment for generations to come.”

“By a margin of three to one, Americans are clamoring for real choices at the pump.  The roll out and adoption of E15 is the first step in delivering Americans the choice they want and deserve,” said RFA President and CEO Bob Dinneen. “E15 has been the most vigorously tested fuel to be approved by the EPA.  Ethanol has long proven itself to be a safe and effective fuel for consumers, and E15 will be no exception.  I want to congratulate Scott for taking the initiative and taking the historic step to be the first to offer E15.  When given an option, Americans will choose a domestic renewable fuel that is creating jobs, reducing oil dependence, and lowering prices at the pump here at home.”

Source : Renewable Fuels Association

NCERC Researchers Produce First Cellulosic Ethanol From Corn Kernel

Researchers at the NCERC today announced that they have successfully produced ethanol from the cellulosic portion of the corn kernel.

“This research is demonstrated proof of the viability of ‘generation 2.0 ethanol,’” NCERC Director John Caupert said. “By utilizing existing technologies readily available in the commercial marketplace, the NCERC was able to produce a biofuel that builds upon the strengths of conventional corn ethanol and the promise of cellulosic ethanol, thus making bolt-on cellulosic ethanol a reality.”

Caupert added that the potential for cellulosic ethanol has significant immediate and long-term impacts on the biofuels industry generally and the ethanol industry specifically.

“Any of the 211 existing ethanol plants in the United States could be retrofitted with existing bolt-on technologies to produce cellulosic ethanol from corn without the need to build new facilities,” Caupert said. “This translates into opportunities for jobs and economic development, particularly in rural areas.

According to the Illinois Renewable Fuels Association, the ethanol industry provides more than 4,000 full-time jobs with an economic impact exceeding $5.29 billion in Illinois alone. There are currently 14 ethanol plants online in the state.

NCERC Assistant Director of Biological Research Sabrina Trupia emphasized the importance of the demonstration in future research opportunities.

“This is a significant milestone with immediate industry impact, but producing cellulosic ethanol from corn bran is also proof that cellulosic ethanol could be produced at NCERC utilizing any cellulosic feedstock,” Trupia said. “From a research perspective, this is only the first step in a very exciting road toward a future of energy security.”

The NCERC credits a series of actions, grants and capital gifts for making the research possible, including the formation of the NCERC Technical Advisory Committee in 2008, the Center’s 2009 Advanced Biofuels Initiative, and two significant capital gift donations: a corn fractionation system (2010) and fermentation suite (2011). These steps were complemented by a research and development grant through the Illinois Department of Commerce and Economic Opportunity.

“It’s the culmination of four years of activity here at the Center, and a shining example of a public-private partnership that works,” Caupert said. “With our expanded fermentation capabilities, the Center is actively seeking industry, academic, and government agency partnerships.”

USS Ford Conducts Operational Transit on Algae Fuel Blend

USS Ford (FFG 54) successfully transited from the ship's homeport in Everett, Wash., to San Diego, March 2, using 25,000 gallons of a 50/50 algae-derived, hydro-processed algal oil and petroleum F-76 blend in the ships LM 2500 gas turbines.

USS Ford's transit on the algal blend marks the first demonstration of the alternative fuel blend in an operational fleet ship.

"We've done basically every range of research vessel we could test: the experimental riverine command boat; the Naval Academy's yard patrol; a landing craft utility, a landing craft air cushion amphibious, and self defense test ship," said Richard Leung, Naval Sea Systems Command (NAVSEA) Navy Fuels engineering manager. "Each test has brought us a little closer to the upcoming Green Strike Group demonstration set for later this year."

Meeting the secretary of the Navy's call for a drop-in fuel replacement, no changes were required to the infrastructure of the ship or fueling pier for the test. The blended fuel was stationed on a barge in Puget Sound off Bremerton, Wash., and immediately available to the Ford for testing.

"We didn't embark any personnel or instrumentation for the transit because we wanted to minimize impact to the ship's normal operations and because we weren't conducting the same quantitative tests and analysis we've done previously," said Leung. "Instead, we provided the ship's engineers a list of fuel and engine performance system questions and parameters, so they could provide feedback on how the ship performed using the blend as compared to its typical fuel."

The ship burned all 25,000 gallons during the transit, and according to Leung, feedback from the ship's engineers was favorable.

"The crew reported no change in their typical procedures when receiving, handling, or processing the biofuel, and said operational performance of the fuel system and gas turbine engines on the blend was almost identical to operations on traditional F-76," said Leung.

"Having feedback from the Ford's engineers is extremely useful as we move forward with validating the algal oil blend, and as we prepare for the upcoming Green Strike Group demonstration later this year," said Greg Toms, NAVSEA technical warrant holder for Fuels and Lubricants. "We'll again be limited on the data we can collect during that event and will ask similar questions to continue measuring operational user feedback."

NAVSEA's alternative fuels efforts help the Navy increase energy security, safeguard the environment, and support the secretary of the Navy's goals to demonstrate a green strike group by 2012, deploy the "Great Green Fleet" in 2016, and obtain 50 percent of the Fleet's liquid fuel from alternative sources by 2020.