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Alcohol-to-Jet Could Become Predominate SAF Platform

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By Tom Bryan

March 13, 2023

Business Markets 

Ethanol Producer Magazine's editor reflects on the trajectory of ethanol-based SAF while offering a preview of the publication's April issue, which includes stories on alcohol-to-jet, industry M&A activity, and near-site ethanol plant CCS.

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Legislation currently pending in Minnesota aims to establish a clean transportation standard that would require the state's transportation fuels to achieve 100 percent reduction in carbon intensity (CI) by 2050.

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Off the Ground

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By Katie Schroeder

March 10, 2023

Several alcohol-to-jet projects, partnerships and technologies have been announced in the past 18 months. Ethanol Producer Magazine checks in on each, looking at where they stand and what they might ultimately achieve. Sustainable aviation fuel production remains nascent, but it is already clear that the feedstocks predominantly being used to make SAF today will not satisfy total future demand. Billions of gallons of SAF are needed, but only so much used cooking oil, waste fat, corn oil and soybean oil is available and unclaimed. A host of other feedstocks are plausible, but hard to convert, hard to find or hard to defend. These marketplace realities are drawing the SAF industry to an input that is ubiquitous, clean, understood and transformation ready: low-carbon ethanol.

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Americans strongly support expanded use of lower-cost, lower-carbon renewable fuels like ethanol, want greater access to higher ethanol blends, and strongly oppose policies that remove options at the gas pump or the auto dealership.

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At the U.S. Grains Council's 20th International Marketing Conference and 63rd Annual Membership Meeting in Savannah, Georgia, the Council's Ethanol Advisory Team (A-team) solidified key market priorities for 2023.

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The U.S. exported 117.82 million gallons of ethanol and 770,344 metric tons of distillers grains in January, according to data released by the USDA FAS on March 8. Exports of both products were down when compared to January 2022.

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With carbon capture and sequestration taking ethanol towards net-zero, a rising CCS developer is focused on working with producers that are uniquely positioned to sequester near their plant.

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UNICA, the Brazilian sugarcane industry association, has announced facilities in the south-central region of Brazil produced 207.26 million liters of ethanol during the first half of February. Corn ethanol accounded for 98 percent of that volume.

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The attorneys general of Iowa and Nebraska on March 6 notified U.S. EPA Administrator Michael Regan of their intent to sue the agency over its illegal delay in issuing regulations to allow year-round sales of E15 within their states.

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The U.S. Energy Information Administration increased its forecasts for both 2023 and 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released March 7. The forecast for ethanol blending was also increased.

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The Washington State Senate on March 1 voted 46 to 2 in favor of a bill that aims to encourage the manufacture and purchase of SAF though tax incentives. The bill also directs WSU to convene a workgroup to further development of alternative jet fuel.

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The U.S. EPA will hold a virtual public hearing on March 21 to gather comments on its proposed rule that aims to allow year-round sales of E15 in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin starting in 2024.

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Reynolds receives RFA award, addresses NEC

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By Office of Iowa Gov. Kim Reynolds

March 03, 2023

On March 2, Iowa Gov. Kim Reynolds received the RFA's All-Industry Award and addressed the National Ethanol Conference, where she announced plans to request an emergency waiver allowing E15 sales this summer.

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Iowa awards $1.1 million in renewable fuels infrastructure grants

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By Iowa Department of Agriculture and Land Stewardship

March 03, 2023

Twenty-three Iowa locations in 16 different counties were awarded more than $1.1 million in cost-share grants from the Iowa Renewable Fuels Infrastructure Program during the latest quarterly application cycle.

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Growth Energy on March 3 hailed a final rule by the Arizona Department of Agriculture Weights and Measures Services Division to allow the sale of E15 in the greater Phoenix area under the state's Clean Burning Gasoline program.

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The U.S. EPA on March 1 released a proposed rule that aims to allow year-round sales of E15 in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin beginning on April 28, 2024.

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The innate persistence of the U.S. ethanol industry and its champions can drive renewable fuels to new heights in 2023, RFA President and CEO Geoff Cooper said in his annual “State of the Industry� presentation at the NEC.

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Swedish Biofuels AB announced on Feb. 27 an investment by Mitsubishi Corp. to jointly accelerate commercial deployment of clean renewable fuels using Swedish Biofuels advanced alcohol to jet (ATJ) technology.

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The ethanol industry's contribution to the U.S. economy increased in 2022 as production volumes continued to recover from COVID pandemic levels and producers received higher prices for ethanol and co-products like distiller grains and corn oil.

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Data released by the U.S. Energy Information Administration for 2022 show that ethanol volumes continued to recover from the pandemic-affected levels of 2020 and that the ethanol blend rate hit a record 10.39 percent.

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The RFA released its 2023 Ethanol Industry Outlook and Pocket Guide during the 28th annual National Ethanol Conference in Orlando. The annual publications serve as the go-to source of ethanol industry information, facts, and statistics.

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Adding low-cost ethanol to the nation's gasoline supply improves energy security and saves the average American household more than $750 per year, according to a new study conducted by energy economists from the University of California-Berkeley.

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USGC: Ecuador removes VAT on DDGS

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By U.S. Grains Council

February 24, 2023

On Feb. 2, 2023, the National Customs Service of Ecuador (SENAE) officially ruled in favor of the domestic feed industry's request for a value added tax (VAT) exemption for distillers dried grains with solubles (DDGS).

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USGC staff and Ethanol Advisory Team members traveled to Ottawa, Canada, from Jan. 31 to Feb. 2, 2023, to meet with Canadian government officials and private stakeholders to discuss details related to the Canadian Clean Fuel Regulation.

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Pearson Fuels, the country's largest E85 distributor, has opened its 300th retail E85 site. The latest addition to the San Diego-based company's E85 network is located at 8617 Cuyamaca St., Santee, California.

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UNICA, the Brazilian sugarcane industry association, has released data showing that ethanol production was up during the second half of January. Ethanol sales for the full month were up more than 23 percent.

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Rep. Randy Feenstra, R-Iowa, in February reintroduced three bills that aim to support the U.S. biofuels industry by comparing the costs of EV and FFV fleets, supporting R&D for SAF, and supporting the development of biofuel fuel cells.

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The USDA's Economic Research Service on Feb. 7 published a report discussing its analysis of U.S. Energy Information Administration data and predicting possible domestic and global demand for ethanol through 2030.

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The government of Japan on Feb. 1 issued proposed biofuel standards for 2023-2027 that address both ethanol and sustainable aviation fuel (SAF). A public comment period is open through March 2, with the new standards scheduled to take effect April 1.

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RFA: Minnesota E15 volume hits record

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By Renewable Fuels Association

February 20, 2023

Sales of E15, a gasoline blend containing 15 percent ethanol, hit a record 171 million gallons in Minnesota in 2022, according to a new Renewable Fuels Association analysis of data from the Minnesota Department of Commerce.

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