Cellulosic Production Idled Citing EPA Decisions, POET-DSM Converting Cellulose Plant to Research, Development
by Chris Clayton (DTN Progressive Farmer) In another response to EPA’s actions regarding the Renewable Fuel Standard, POET-DSM Advanced Biofuels LLC announced Tuesday the company will “pause” production of cellulosic ethanol at its Project Liberty plant in Emmetsburg, Iowa.
POET-DSM Advanced Biofuels is a 50-50 joint venture between Royal DSM and POET LLC, created in response to the RFS. The plant has produced cellulosic ethanol from corn cobs and other corn fiber such as husks.
The ethanol plant will instead by shifted to focus on research and development and improving operational efficiency, company officials said. POET executives made it clear the decision to stop cellulosic ethanol production at the plant “is a result of EPA’s challenges with the implementation” of the RFS.
“Over the past three years, EPA management of the RFS has held back advancement of cellulosic biofuels,” said Kyle Gilley, POET’s senior vice president of external affairs and communications.
The joint venture will focus on R&D with the goal of improving mechanical reliability, creating additional technological efficiencies and licensing technology in countries, which favorably support the use of low-carbon fuels from crop residue and other biomass, the company stated.
Gilley said the POET-DSM plant had been producing and selling cellulosic ethanol into the market, but declined to provide a volume level.
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EPA over the past month has released a supplemental plan for RFS volume levels in 2020 that would account for about 770 million gallons of lost biofuels demand over the past three years, though EPA, on average, has granted small-refinery exemptions averaging closer to 1.35 billion gallons a year, according to the Department of Energy. Biofuel groups and Midwest lawmakers have been calling on EPA to uphold a position laid out by President Trump in September that would assure at least 15 billion gallons of obligated volumes under the RFS.
During the past 18 months, more than 20 ethanol plants have stopped production while many others have scaled back production, in response to struggling profit margins. READ MORE
Grassley pushes Trump, EPA to make changes that will restore biofuels demand (Des Moines Register)
Tax Credits, RFS Get Attention In D.C. As Biofuels Sector Continues To Struggle (Iowa Public Radio)
Letter to the Editor: Environmental Protection Agency needs to reverse course, follow law (Gothenburg Leader)
My View: Farmers must be heard on renewable fuel deficit (Effingham Daily News)
Speak up now on EPA’s ethanol waivers (Kearney Hub)
Emmetsburg ethanol plant pauses production (Times Republican)
SHADOWS OF TWILIGHT DARKEN THE AGE OF CELLULOSIC ETHANOL (Successful Farming)
5 SRE applications filed for 2019, 2 declared ineligible for 2018 (Biomass Magazine)
Next-gen biofuel dreams fade; developers blame EPA (Agri-Pulse)
EPA Damaging Economy, Environment (Emmetsburg Reporter/Democrat)
2020 Highlights and Outlook: The Digest’s 2020 Multi-Slide Guide to DSM’s Nutrition and Materials (Biofuels Digest)
Poet DSM Advanced Biofuels won’t have to repay financial incentives for mothballed Emmetsburg plant (Biofuels Digest)
Shuttered Iowa ethanol plant settles tax incentive deal (SF Gate)
BETO and POET-DSM Biorefinery Pivots to Support the COVID-19 Response (U.S. Department of Energy)
