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Governors' Biofuels Coalition
NEWS UPDATE June 2, 2021

Top Story

Poet Buys Flint Hills Ethanol Plants

By Todd Neeley, DTN Staff Reporter  •    •  Posted June 2, 2021

With the purchase, Poet now owns and operates 33 ethanol plants in Michigan, South Dakota, Indiana, Iowa, Ohio, Minnesota, Missouri and Nebraska. As part of the transaction, Poet now owns terminals in Texas and Georgia and expanded its ethanol-production capacity by about 40%. Flint Hills also operates three oil refineries with about 700,000 barrels of daily production capacity. The company produces aromatics, asphalt and other chemicals.
[ read more … ]

POET acquires Flint Hills’ ethanol business, boosts capacity 40%

By Stephanie Kelly, Reuters  •    •  Posted June 2, 2021

POET said on Tuesday it has acquired Flint Hills Resources’ entire ethanol business, highlighting the largest U.S. biofuels producer’s bet that conventional renewable fuels like corn-based ethanol will play a role in reducing carbon emissions. The deal will boost POET’s ethanol production capacity by 40% to 3 billion gallons per year, the company said. [ read more … ]

Biden Administration

Biden calls for higher tax credit for SAF, spending for biofuels ‘support’

By OPIS  •    •  Posted June 2, 2021

The Biden administration in its budget proposal for fiscal year 2022 wants to give sustainable aviation fuel (SAF) producers a $1.50 to $1.75/gal tax credit, while providing $1 billion in federal funds to “support” biofuels. Biden’s budget also includes $1 billion in “support for biofuels” between 2022 and 2024. [ read more … ]

Grassley zaps USDA over electric vehicle budget request

By Agri-Pulse  •    •  Posted June 2, 2021

Republican Sen. Chuck Grassley of Iowa is ripping USDA for earmarking $25 million in its budget request for transitioning its vehicle fleet away from conventional fuels. According to USDA’s fiscal 2022 budget summary, the funding will go for “hybrid, alternative, and/or electric vehicle charging infrastructure as an interim critical step to meet strategic clean energy goals.” [ read more … ]

States

Ricketts signs carbon sequestration law for ethanol plants, producers

By Kellan Heavican, Brownfields  •    •  Posted June 2, 2021

Nebraska Governor Pete Ricketts has signed a new law allowing ethanol plants to sequester carbon. He tells Brownfield the legislation creates the legal and regulatory framework to sequester carbon in a geological structure. “What that means is that ethanol plants can take their carbon dioxide and store it in the ground and improve their carbon footprint,” he says. “That means that for example if you’re using E30 in your vehicle, you’re going to have a lower carbon footprint than an electric vehicle.” [ read more … ]

Markets

EIA: Biofuel capacity falls slightly in March, feedstock use up

By Ethanol Producer Magazine  •    •  Posted June 2, 2021

The U.S. Energy Information Administration released data on May 28 that shows 20.577 billion gallons of U.S. biofuel production capacity was in place in March, down slightly from 20.64 billion gallons in February. Fuel alcohol production capacity was down for the period, falling from 17.455 billion gallons in February to 17.376 billion gallons in March. Biodiesel capacity, however, increased from 2.394 billion gallons in February to 2.41 billion gallons in March. Capacity for other biofuels, including renewable diesel, renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other renewable fuels, held steady at 791 million gallons. [ read more … ]

Land Use Change

Newton’s Law, The Science of Land-Use Change in Biofuels Debates and Making The Big Time

By Todd Neeley, DTN Staff Reporter  •    •  Posted June 2, 2021

One of the big questions academics have tried to answer is whether expanded biofuels production has led to conversion of grasslands to crops in the Midwest. Just as we know from Sir Isaac Newton’s third law of physics, there is an equal reaction to every action. For every study there is, well, a counter study. [ read more … ]

New Reports Correct the Record on Faulty Land Use Change Assertions

By Ken Colombini, RFA  •    •  Posted June 2, 2021

A pair of recent studies examining purported cropland expansion in the Midwest are based on a flawed methodology that “suffers from accuracy and certainty issues,” according to a new review of the studies by researchers at Southern Illinois University Edwardsville. In reviewing studies by Zhang et al. and Lark et al., the SIUE authors found that the inherent defects in their methodology “severely hinder its use for estimating land use change over time.” [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.