Carbon Intensity Creates Opportunities

BioRefineries/Renewable Fuel Production, Biorefinery/Fuel Production Infrastructure, Business News/Analysis, California, Canada, Environmental Protection Agency, Federal Agency/Executive Branch, Infrastructure, Marketing/Market Forces and Sales, Opinions, Oregon, Policy, Sustainability, Washington

April 6, 2016

Print This Article Share it With Friends

0 Comments

by Bernie Hoffman (K-Coe Isom/Ethanol Producer Magazine) The more proactive roles producers take in reducing carbon intensity, the more they will benefit as energy use reduction moves from an incentive to a requirement. — … Carbon intensity and carbon accounting have moved from simply being green kudos a few years ago to an emerging market with tangible benefits available to ethanol producers who can demonstrate and capitalize on reduced carbon intensity. California already has enacted low-carbon fuel requirements and more states are expected to follow suit.

In addition, as the energy markets, especially power generation, comply with U.S. EPA regulations and proposed CO2 limits, ethanol producers have seen and will see energy costs climb.

…

There are essentially two main areas of opportunity. First, by making modifications to produce ethanol more efficiently and with lower carbon intensity, ethanol plants are more likely to qualify for the EPA’s efficient producer pathway petition process (EP3).

…

West-facing producers need to comply with the California Low Carbon Fuel Standard to be able to deliver ethanol into the state. Reduced carbon intensity can translate to a tangible premium for LCFS-qualified ethanol and it is expected that value will continue to increase. Oregon, Washington, British Columbia and other U.S. states and Canadian provinces are taking steps to enact their own versions of LCFS. READ MORE

Advanced BioFuels USA