Advanced BioFuels USA

QUOTE OF THE WEEK — Diesel Technology Forum

A robust renewable fuels policy that recognizes today’s value and the future potential for expanded use of renewable fuels is no less important than writing a large $7.5 billion check for investments in infrastructure to boost electric or hydrogen fuel options. – Diesel Technology Forum READ MORE

Decarbonization Is a Team Sport

(Diesel Technology Forum) A robust renewable fuels policy that recognizes today’s value and the future potential for expanded use of renewable fuels is no less important than writing a large $7.5 billion check for investments in infrastructure to boost electric or hydrogen fuel options. If we want to get working on decarbonizing transportation as soon as possible, we need a mix of options available as soon as possible, and thoughtful government policies to match. Afterall, we are all on the same decarbonization team.

It’s a rush to decarbonize transportation. Many fuels and technologies are emerging to compete with both diesel and gasoline, along with a smorgasbord of incentives and policies. Consider government policy treatment of electrification and renewable fuels.

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Controversy has long surrounded the RFS because of delays in EPA’s timing of annual volumes and administration of a small refiner exemptions from the blending requirement, among other things.

Depending on feedstocks, renewable biobased diesel fuels reduce carbon emissions by 20 to 80 percent. They are suitable for use in any existing diesel vehicle, engine or equipment in various blend percentages in accordance with manufacturer recommendations. Most notably, this all takes place without the need for investments in new vehicles or infrastructure to achieve the benefits. Carbon and emissions footprints can decrease literally overnight.

In 2020, the US biomass-based diesel and renewable diesel market grew to 3 billion gallons – its highest volume ever – and generated more than 4.5 billion advanced biofuel credits. The National Biodiesel Board projects a 5-billion-gallon capacity in 2023, and their vision for the future includes considerable growth, “Biodiesel, renewable diesel, and renewable jet fuel will be recognized as mainstream low-carbon fuel options with superior performance and emission characteristics. In on road, off road, air transportation, electricity generation, and home heating applications, use will exceed six billion gallons by 2030, eliminating over 35 million metric tons of CO2 equivalent greenhouse gas emissions annually. With advancements in feedstock, use will reach 15 billion gallons by 2050.”

While the EPA deliberates about the future RFS policy, the recently enacted Infrastructure Bill (Infrastructure Investment and Jobs Act) commits $7.5 billion for installing electric vehicle charging infrastructure to aid in overcoming the lack of charging infrastructure for a prospective growing population of electric vehicles. That public policy enables timely planning and investments.

While some of these investments will go for commercial trucks, charging infrastructure is vastly different than passenger vehicles, making the timing of decarbonization benefits from electric trucks further away from delivering large scale carbon reductions. And that’s depending on many dynamic variables like market acceptance as well as future government incentives and investments. That’s not to say electric trucks won’t deliver, but it is to say let’s be realistic about long term and near-term deliverables on the road of decarbonization.

A robust renewable fuels policy that recognizes today’s value and the future potential for expanded use of renewable fuels is no less important than writing a large $7.5 billion check for investments in infrastructure to boost electric or hydrogen fuel options. If we want to get working on decarbonizing transportation as soon as possible, we need a mix of options available as soon as possible, and thoughtful government policies to match. Afterall, we are all on the same decarbonization team. READ MORE

Ethanol Producers to Electric Car Makers: We’re Greener than You Are

by Chuck Abbott (Successful Farming) With automakers shifting toward the production of electric cars and trucks, the ethanol industry said on Wednesday that biofuels will be an important tool against global warming, and arguably create less pollution than battery-powered vehicles. The comparison was based on life-cycle costs for the power sources, starting at power stations for electricity and cornfields for ethanol.

“The upstream emissions associated with electricity generation and battery manufacturing are often overlooked, giving the false impression that electric vehicles are zero-emission vehicles,” said Geoff Cooper of the Renewable Fuels Association, a trade group. “These overlooked emissions can be quite significant.”

An RFA analysis showed that a pickup truck using fuel that is 85% ethanol and 15% gasoline would generate far fewer greenhouse gas emissions over its lifetime than the same-size pickup truck “running on fossil-generated electricity,” said Cooper at a House Agriculture Committee hearing on the implications of electric vehicles on rural America.

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At the hearing, Rep. Abigail Spanberger announced a bipartisan bill to modify the USDA’s cost-sharing Rural Energy for America Program to include the installation of charging stations for electric vehicles, including pickup trucks, combines, and farm tractors. “We need to prevent rural America from getting left behind in the conversation,” the Virginia Democrat said in a statement. “Electric vehicles of the future are not just for cities — they also stand to deliver major benefits to farms, agribusinesses, and rural communities in Virginia and across the country.”

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Electric vehicles figure prominently in the plan as a way to reduce tailpipe emissions. “The future of ground transportation is electrification,” said David Strickland of General Motors, which unveiled an electric pickup truck last week.

“We believe any future decarbonization policy should take a technology-neutral, performance-based approach that focuses strictly on greenhouse emission reduction and increasing fuel efficiency without dictating the use of specific fuels and vehicles to achieve those reductions,” said the RFA’s Cooper. At the current adoption rate of electric vehicles, he said, ethanol will be a clean-burning option for motor vehicles for years to come.

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Also at the hearing, a representative of the National Association of Convenience Stores said charging stations will not become common unless the stores can sell electricity at competitive rates. At present, they must pay “very high demand charges” to utilities for the electricity, the group said.

To watch a video of the hearing, click here.

To read the written testimony of witnesses, click here. READ MORE

Beyond Cities: Breaking Through Barriers to Rural Electric Vehicle Adoption (Environmental and Energy Study Institute)

Electric vehicles pose hurdles in rural America (Farm Progress)

House Agriculture Committee holds a hearing on Electric Vehicles (RFD TV; includes VIDEO)

Sheetz VP Testifies on EVs at House Ag Committee Hearing — Walter, on behalf of NACS, shared how fuel retailers can help bring EV charging to rural America (NACS)

HOUSE AG TALKS EV IN RURAL AREAS: (Politico’s Morning Energy)

Excerpt from Farm Progress: Mark Mills, senior fellow at the Manhattan Institute, says electric vehicles will reduce oil only slightly, and have an even smaller impact on carbon dioxide emissions. Mills also states that the increased demand for EV batteries will lead to increases in the price for batteries, rather than decrease prices over time. Raw materials and minerals consist of 60-70% of the cost to fabricate a battery, and new mines take a minimum of 16 years to bring online.

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Trevor Walter, vice president of petroleum supply management for Sheetz on behalf of the National Association of Convenience Stores, also warned if a ban is made on internal combustion engines, the ban sets renewable fuels on a path to elimination. “Those farmers have made long-term policy decisions to gear for production.” To pull the rug out from under them now would be detrimental, he said.

This is why it is important for lawmakers to focus on reducing carbon emissions with technology-neutral goals that account for the lifecycle of carbon emissions – including electrician generation – as the foundation for sound policies, he added.

Walter noted fuel retailers are well-positioned to play an important role in decarbonizing vehicles by offering chargers at their sites. “When drivers are able to readily get electricity the same way as they fuel now, the availability of chargers is no longer an impediment.” He added that 86% of rural America is 10 minutes from a convenience store. READ MORE

Excerpt from RFD TV: Several lawmakers expressed concerns about the additional power draw on rural electric grids. Lincoln Wood, the Electrification Policy Manager for the Georgia Southern Company says they are planning to invest $1.3 billion to improve resiliency and cyber security.

“Utilities are constantly looking at the electric grid to upgrade or make more resilient for all these reasons, but a couple specific activities that we’re working on. Might be automated line devices. And so we can isolate the source of that and make a smaller impact to the grid itself. It could be maintenance at a substation or rebuilding the entire substation if needed to increase reliability. It could be even for our transmission system, rebuilding even the structures if those who needed.” READ MORE

Excerpt from NACS: Walter also shared several barriers to developing a competitive market that exist today that make it difficult for fuel retailers to offer EV charging to their customers.

“For our industry to play this important role, and for charging to be good for consumers, the sale of electricity must be reformed such that a functioning competitive retail market for selling electricity to vehicle drivers emerges,” Walter said. “We have several impediments to that today. First, utilities hit commercial users of electricity, such as convenience and fuel retailers, with punitive demand charges. Given the large electricity demands associated with fast chargers, these demand charges overwhelm the cost of electricity and make it impossible for retailers to sell electricity and make a profit.

“Second, many utilities have had the rates they charge adjusted so that residential and business customers pay higher rates in order to underwrite the construction and operation of EV chargers. This too creates an unlevel playing field and prevents a competitive market from emerging because other businesses that deploy chargers must try to recover construction and operating costs from vehicle drivers themselves,” he said.

“Third, a handful of states still prohibit businesses from selling electricity to vehicle drivers—they only allow regulated utilities to do that. This makes businesses with chargers engage in awkward practices such as renting the chargers based on time spent at the charger rather than selling electricity. This makes for confusing experiences and stunts the growth of the market,” Walter said.

Several members of Congress in their statements and questions recognized the important role the convenience industry plays in their communities and echoed many points in Walter’s testimony. Rep. David Scott (D-GA), chairman of the House Agriculture Committee, in his opening statement stated, “As anyone who lives in a rural community knows, gas stations and convenience stores are often a pillar of these communities and are sometimes the only place for us to get food. With the ongoing investment and transition to electric vehicles, we must know what the long-term impact to these businesses will be.”

Rep. Glenn “GT” Thompson (R-PA), ranking member of the House Agriculture Committee, referenced Walter’s testimony when he said that any alternatives, including electricity, should be offered in an open, competitive market and that Congress should not pick winners or losers for transportation energy. When Rep. Thompson asked Walter why it was important that any new motor vehicle fuel and energy technology is subject to an open and competitive market, Walter responded that an open market provides the lowest cost and more choice to consumers.

Several other members of the House Agriculture Committee shared the same concerns highlighted by Walter, including Rep. Randy Feenstra’s (R-IA) comments on creating an even playing field for EV charging, Rep. Sanford Bishop’s (D-GA) question on range anxiety, Rep. Julia Letlow’s (R-LA) concerns on who pays for EV charging and how can businesses make a profit, and finally Rep. Ann Kuster’s (D-NH) concerns and questions regarding creating a rate for electricity for EV charging to eliminate demand charges and excess fees on electricity. READ MORE

Excerpt from Politico’s Morning Energy: HOUSE AG TALKS EV IN RURAL AREAS: Members of the House Agriculture Committee discussed the feasibility of electric vehicle expansion specifically in rural areas during a hearing Wednesday. Lawmakers in both parties raised questions over availability, cost and practical use in remote areas with limited electric resources. Rep. Doug LaMalfa (R-Calif.) expressed concerns over time periods when power is reduced in states like California to avoid wildfires and extreme heat.

“Electric vehicles won’t all charge at the same time,” responded Lincoln Wood, electrification policy manager at Southern Company, adding that there are similar issues with limited gas as folks look to evacuate areas in the South due to incoming hurricanes.

New legislation: Rep. Abigail Spanberger (D-Va.) introduced a bill Wednesday afternoon following the hearing to expand USDA’s Rural Energy for America Program to include electric vehicle supply equipment. Currently REAP can’t be used for electric vehicle charging infrastructure. READ MORE

Learning from Washington State: The Digest’s 2022 Multi-Slide Guide to Clean Fuels Policy

by Jim Lane (Biofuels Digest) Did you know that most voters strongly support Clean Fuel Standards? Check out this slide

January 19, 2022 Read Full Article

Casey’s Receives Biodiesel Marketing Award from Iowa’s Agriculture Secretary

(Iowa Department of Agriculture and Land Stewardship/Biobased Diesel Daily) Iowa Secretary of Agriculture Mike Naig announced Jan. 11 that the