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Last week, the Energy Futures Initiative Foundation (EFIF), led by Ernest J. Moniz (pictured), the 13th U.S. Secretary of Energy, released a new study detailing pathways to further decarbonize bioethanol to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.

“Low-carbon liquid fuels will be essential for decarbonizing transportation, and ethanol has been the leader in the move to affordable low-carbon fuels,” said Moniz. “Through this research, we identified a portfolio of relatively low-cost solutions that can take ethanol close to a net zero fuel by 2035. In addition to being the most effective, scalable, and affordable low-carbon fuel today for vehicles, decarbonized ethanol also has the potential to help provide Sustainable Aviation Fuel. This market can help sustain the ethanol supply chain as a major driver of the rural economy.”

The EFIF research found nine currently available and affordable measures, which together could lower the carbon intensity (CI) score of renewable vehicle fuels to near-net-zero by 2035 and to net-zero or negative emissions by 2050.

Copyright 2024 EFI Foundation

The research also looks at the potential of lower-carbon bioethanol to help reduce emissions for on-road fuels as well as to close the “emissions gap” in hard-to-abate sectors like aviation.

The research, sponsored by Growth Energy, included months of research by EFIF staff to analyze the carbon intensity reduction potential, feasibility, and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S. All of the nine initiatives ultimately recommended are currently in use at select facilities and farms.

“EFIF’s recommendations are as practical as they are robust, reflecting innovations our members and their farm partners are already embracing,” said Emily Skor, CEO of Growth Energy. “We are proud of our industry’s progress to date and look forward to seeing biofuels continue to deliver on ambitious carbon reduction goals.”

The full EFIF study was released in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC this week.

For more information, please contact Vice President of Communications Elizabeth Funderburk.

LATEST EIA DATA

Last week, domestic ethanol demand was 14.5 BGY, up 4.9% compared to a week ago. The EIA-reported gas demand was up 4.9% from last week, at 141.1 BGY. The 4-week average ethanol and gas demand are 13.9 and 135.7 BGY (+2.1% YoY).

Ethanol production was 15.2 BGY last week, down 5.2% versus the week before, and 0.2% less than the 4-week average in 2019. Midwest production was down 5.5% (-15.9 MG) versus a week ago, and average production in the other regions was down 1.6% (+0.3 MG) in the Gulf Coast and Rocky Mountain regions. Capacity utilization of plants online was 84.9% overall, 85.2% in the Midwest, and 80.3% on average, elsewhere, excluding 1,027 MGY of capacity shutdown at 22 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 80.3% overall, 83.6% in the Midwest and 50.1% in the other regions.

Exports were an estimated 30.3 MG last week based on 130 MG of exports forecast for September.  The EIA reported no ethanol imports last week.

Overall inventory was down 19.5 MG last week. EIA-counted stocks decreased 11.0 MG, and regional changes were: East (-13 MG), Gulf (-5 MG) and West (-1) Coasts and the Midwest (+7 MG). In-transit inventory decreased 8.5 MG.

Based on the total inventory of 1,594 MG on Sep 20th and the 4-week avg. domestic demand, there were 42.0 days of supply, up 0.3 days versus a week ago. Including the 4-week avg. of net exports, there were 37.6 days of supply, up 0.2 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

IN OUR ASSOCIATION

Prof. Ernest J. Moniz and Skor on stage at the Clinton Global Initiative (CGI) annual meeting.

Growth Energy CEO Emily Skor was on the program at two different events during New York Climate Week this week--first at the annual meeting of the Clinton Global Initiative (CGI) and then later on a panel presented by Delta Airlines and hosted by Crain's New York Business.

The CGI annual meeting attracts over 2,000 high profile leaders in the private and public sectors, many with a shared interest in CGI’s “Climate Resilience” focus area. While there, Skor and Professor Ernest J. Moniz shared the Energy Futures Initiative (EFI) Foundation's recent findings that highlight bioethanol’s central role in decarbonizing the transportation sector. Aside from presenting the new research, Skor had an opportunity to engage high level officials from the White House and various agencies, including the U.S. Department of Energy and the Environmental Protection Agency.

Skor also sat on a panel presented by Delta and focused on the bioethanol industry’s role relative to sustainable aviation fuel, sharing the stage with Amelia DeLuca, Delta's Chief Sustainability Officer, and Julie Tighe, President of the New York League of Conservation Voters (NYLCV).

From left to right, panel moderator Fred P. Gabriel of Crain's New York Business, Julie Tighe of NYLCV, Skor, and Amelia DeLuca of Delta Air Lines.

Today, Skor will be back in Washington, D.C. to speak on another panel about liquid fuels at National Clean Energy Week's Policymakers Symposium. 

For more information, please contact Vice President of Communications Elizabeth Funderburk. 

IN GOVERNMENT AFFAIRS

Growth Energy praised the introduction of new legislation this week that would extend the 45Z clean fuels credit, which is currently slated to expire at the end of 2027.

The Farmer First Fuel Incentives Act is sponsored by Senators Roger Marshall (R-Kan.) and Sherrod Brown (D-Ohio), with companion legislation introduced by Representatives Tracey Mann (R-Kan.) and Marcy Kaptur (D-Ohio) in the House of Representatives. Senators Pete Ricketts (R-Neb.), Amy Klobuchar (D-Minn.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wisc.), and Tina Smith (D-Minn.) also cosponsored the legislation. The current 45Z tax credit would be extended for seven years, and new requirements would prioritize domestic feedstocks for low-carbon fuels, like bioethanol.

“This important bill sends a strong signal that the 45Z extension is going to be a top, bipartisan priority in this Congress and the next,” said Growth Energy CEO Emily Skor. “We applaud Senators Brown, Marshall, and all our rural champions for working to give biofuel producers and our farm partners the long-term certainty we need to accelerate innovation in America’s bioeconomy.

“With a longer runway from Congress, and clear, flexible, and timely guidance from the U.S. Department of the Treasury, we’ll have the pieces in place to unlock billions of dollars in new clean energy investments across rural America.”

Read more here.

For more information, please contact Vice President of Government Affairs John Fuher.

IN REGULATORY AFFAIRS

Following testimony on rail service concerns to the Surface Transportation Board by Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley last week, Growth Energy has signed on to two multi-state coalition letters addressed to President Biden concerning port operation negotiations along the East and Gulf Coasts.

Joining letters from both the Ag Transportation Working Group (ATWG) and a coalition of 177 other state and national trade associations, our request is that President Biden keeps port operations continuing in the event a new labor agreement has not been reached between the International Longshoremen's Association (ILA) and the Unites States Maritime Alliance (USMX) by September 30th. 

"If port operations are stopped, the impact on the ag supply chain will quickly reverberate throughout agriculture and not only slow or shutdown operations, but also potentially lower farmgate prices," wrote the ATWG. 

"Approximately 40 percent of U.S. containerized agricultural exports move through East and Gulf Coast ports, and we believe the time has come for the U.S. government to intervene and ensure port operations do not stop."

From left to right, API's Hupman, Growth Energy's Bliley, OPIS' Godwin, ABFA's McAdams, and AFPM's Moody. 

On Tuesday, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley spoke on a roundtable panel at the 16th Annual OPIS RFS, RINs & Biofuels Forum in Chicago, Ill. Bliley was joined on stage by Michael McAdams of the Advanced Biofuels Association (ABFA), Will Hupman of the American Petroleum Institute (API), and Geoff Moody of American Fuel & Petrochemical Manufacturers (AFPM).

The panel, moderated by OPIS' Director of Renewable Fuels Jordan Godwin, was centered around the Renewable Fuel Standard (RFS) Set compliance for years 2023-2025, items for the next iteration of the RFS Set, E15, implementation of the 45Z tax credit, and concerns about the Environmental Protection Agency's (EPA) tailpipe emissions rule. Other speakers at the conference included representatives from EPA as well as POET's Vice President of Federal Affairs, Rob Walther, who spoke more specifically about the new federal tax incentives.

Last week, the Department of Energy's (DOE) Office of Fossil Energy and Carbon Management (FECM) released a Request for Information that seeks input to assist in the planning of a consortium that will coordinate carbon dioxide (CO2) transport research, development and demonstration efforts.

The research, development, and demonstration efforts would be focused on four topic areas — (1) impact of CO2 impurities on the integrity of transport assets, (2) CO2-specific leak detection and emergency response protocols, (3) repurposing existing infrastructure for CO2 service and (4) connecting modes of CO2 transport/multimodal hubs.

The full request for information document can be found here and formal submissions are due by October 9. 

For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.

IN MARKET DEVELOPMENT 

Jake Comer (center) with members of South Korea's media team.

Earlier this month, Growth Energy welcomed members of a U.S. Grains Council Bioethanol Advisory Media Team from South Korea to our D.C. offices. 

The purpose of this program was to educate participants about introducing the U.S. E10 policy and the carbon reduction effects of bioethanol fuel, building consensus around the fact that bioethanol is a realistic alternative for carbon reduction in the transportation sector. Growth Energy's Vice President of Market Development Jake Comer met with the group to discuss the U.S. bioethanol policy trends and prospects, the benefits of fuel bioethanol and feedstock availability, and our industry’s carbon reduction efforts.

While on their tour of the states, the delegation also visited Growth Energy member plant Marquis Energy in Hennepin, Ill., and then traveled to the Atlanta Motor Speedway in Georgia for a NASCAR race to learn more about E15 and why it was chosen to fuel high-performance racecars. 

Members of the South Korea media team with Get Bioethanol No. 3 driver Austin Dillon in Atlanta, Ga.

Participating media reporters have a key role in helping to grow awareness among Korean policy leaders about the benefits of higher blends, and the visit offered a unique opportunity to showcase bioethanol’s role in carbon reduction.

For more information, please contact Vice President of Market Development Jake Comer.

IN MEMBERSHIP

Last week, Growth Energy member Front Range Energy & Carbon Storage Solutions held its 12th annual golf tournament fundraiser benefiting both the Folds of Honor & The Vail Veterans Program in Windsor, Colo.

The event was attended by over 100 supporters and raised over $130,000 for the charities.

Today, a public informational meeting on Referred Law 21 (RL21, which is part of SB201) is being held in Brookings, S.D. and supporters are encouraged to attend.

RL21, the Regulation of Carbon Dioxide Pipelines Referendum, is a veto referendum going to a vote in South Dakota's November ballots. A 'yes' vote would uphold the legislation, Senate Bill 201, which provides statutory requirements for regulating carbon dioxide pipelines and other transmission facilities and allows counties to impose a surcharge on certain pipeline companies.

This event is an open forum for discussions on both sides of the issue where attendees can hear from both proponents and opponents, and ask questions about RL21, safety, property rights, and local control. The forum begins at 6:30 pm.

Prior to the forum, a barbecue will be held outside the venue for supporters of RL21 or anyone interested in learning more. 

For more information, please contact Senior Vice President of Development Kelly Manning.

Growth Energy is the leading voice of America’s biofuel industry, delivering a new generation of plant-based energy and climate solutions.

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