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Call to Action for a Truly Sustainable Renewable Future
August 8, 2013 – 5:07 pm | No Comment

-Include high octane/high ethanol Regular Grade fuel in EPA Tier 3 regulations.
-Use a dedicated, self-reducing non-renewable carbon user fee to fund renewable energy R&D.
-Start an Apollo-type program to bring New Ideas to sustainable biofuel and …

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Biofuels and the Oil Price, Gloomy Gus, Energy Bear, Express Train to Mood Hell

Submitted by on January 7, 2015 – 11:53 amNo Comment

by Jim Lane (Biofuels Digest)  Oil prices are down, energy stocks are plunging, and the investor mood is giving Lord of the Flies a run for its money for mix of peril, fantasy and pessimism.  So why is the hard data for biofuels so much rosier than the global mood?

Before anyone gets any more down in the mouth, let’s look at the hard data. Specifically, at the market most obviously afflicted by gloomy outlooks and pessimism — the first-gen ethanol business, which is relatively tied in to gasoline prices because of ethanol’s role as a gasoline substitute.

But first-gen producers, it needs to be pointed out, are in some combination of up to five markets: ethanol, distiller’s grains, corn oil, RINs and in some cases CO2.

It’s clear that prices have gone down for fuel ethanol — and sunk faster than corn prices — but hardly as intensely as gasoline prices have fallen. And other products are not tracking oil — in fact, RIN and distillers grains prices are up substantially since the summer.

Part of the reason that the ethanol market is holding up relatively well in tough times is the impact of the Renewable Fuel Standard, and its traded RIN system. RIN prices have jumped as oil prices have slumped — and a $0.76 increase in the RIN value of a gallon of fuel is one main reason why the damage for renewable fuel producers has been slight.

Now — an advanced biofuels producer whose only target product was a direct petroleum substitute, well, we’d be seeing a lot more damage to the bottom line. So, we are seeing, close-up, the value of spreading a product mix in order to combat commodity price volatility.  READ MORE and MORE (247WallStreet) and MORE (The Guardian)

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