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Governors' Biofuels Coalition
NEWS UPDATE June 8, 2021

Top Story

Top Biofuel Maker Eyes Garbage in Widening Feedstock Hunt

By Brian Eckhouse and Jennifer A Dlouhy, Bloomberg  •    •  Posted June 8, 2021

The search for additional feedstocks comes as demand strains availability of traditional biofuel ingredients like soy oil, contributing to food inflation and destruction of forests to plant crops. More fossil-fuel companies are entering the market, and U.S. production capacity for renewable diesel is expected to jump almost sixfold by the end of 2024, according to JPMorgan Chase & Co. Neste said it isn’t worried about heightened competition for raw materials. “It’s fun to see the petroleum companies starting to do what we worked at 15 years ago,” Baines said. “It’s also a demonstration that the oil industry has got the skills and assets to convert from petroleum to renewable.” [ read more … ]

E15

National Conference on Weights and Measures meeting to address proposal on E15

By Ethanol Producer Magazine  •    •  Posted June 8, 2021

A notice published by the National Institute of Standards and Technology states that the 106th annual meeting of the National Conference on Weights and Measures will address a proposal related to E15. The event is scheduled for July 18-23 in Rochester, New York, and will be held using a combined video conferencing platform allowing for both attendance in-person and online. [ read more … ]

Biden Administration

Between Biden and climate investors, carbon storage gains ground

By James Osborne, Houston Chroncile  •    •  Posted June 8, 2021

With President Joe Biden pushing carbon capture as an industry of the future, and oil and gas companies rushing to build up their climate bonafides, commercial scale carbon storage projects are fast on their way to getting built in the United States and abroad. In the Midwest, San Antonio-based Valero and the investment firm BlackRock are lining up customers for a 12 million ton per year carbon storage site — the equivalent to the annual emissions of 2.6 million cars — to begin operation by the end of 2024. In a depleted gas field off the Dutch port of Rotterdam, Royal Dutch Shell and Exxon Mobil are working to get a 2.5 million metric ton per year storage site completed, with a $2.5 billion subsidy from the Dutch government. [ read more … ]

With the White House infrastructure limping along

BY BEN LEFEBVRE, Politico  •    •  Posted June 8, 2021

Climate hawk Sen. Sheldon Whitehouse aired his fears that aggressive climate action might get pushed the side. The Rhode Island Democrat admitted on Twitter that he’s ” officially very anxious about climate legislation.” Partly to blame is the White House’s work to garner Republican in an effort to bring a bipartisan infrastructure package to Congress. That could mean the administration will have to strip out provisions tackling climate change to win over the GOP lawmakers, and there may not be enough time to take those provisions and write a separate climate-focused bill. [ read more … ]

Markets

Options Traders Bet on Return of $100 Oil

By Joe Wallace, Wall Street Journal  •    •  Posted June 8, 2021

The popularity of $100 options is another example of traders converging on seemingly outlandish wagers they consider to be almost guaranteed ways of making money. Analysts say oil is unlikely to zip to $100 any time soon because the world economy is still recovering from the shock of Covid-19 and major producers are lifting output in response to resurgent demand. “Everyone’s been looking at it,” Adam Webb, chief investment officer of trading firm Blue Creek Capital Management LLC, said of $100 call options for oil delivered in December 2022. “It’s a no-brainer.” [ read more … ]

Climate

As leaders gather for G-7, a key question: Will rich countries help poor ones grapple with climate change?

By Brady Dennis, Washington Post  •    •  Posted June 8, 2021

From his home in Bhutan’s capital of Thimphu, high in the Himalayas, Sonam P. Wangdi has witnessed climate change speed the retreat of glaciers and fuel flash floods in his country. He has watched other developing nations confront rising seas encroaching on Pacific islands and drought plaguing farms in Africa. “We are bearing the brunt of the impacts,” said Wangdi, the chair of a group of 47 of the world’s poorest nations that negotiate as a bloc at international climate talks. “It’s the poorest who have contributed the least [to the problem], but who suffer the most. The richer countries have the most capacity to adapt to climate change, and they are the most insulated.” [ read more … ]

Carbon Dioxide in Atmosphere Hits Record High Despite Pandemic Dip

By Brad Plumer, New York Times  •    •  Posted June 8, 2021

The amount of carbon dioxide piling up in Earth’s atmosphere set a record last month, once again reaching the highest levels in human history despite a temporary dip in the burning of fossil fuels worldwide caused by the coronavirus pandemic, scientists said Monday. Scientific instruments atop the Mauna Loa volcano in Hawaii showed that levels of carbon dioxide in the air averaged 419 parts per million in May, the annual peak, according to two separate analyses from the Scripps Institution of Oceanography and the National Oceanic and Atmospheric Administration.
[ read more … ]

Head of Nebraska Corn Board says ethanol is another vehicle to meet climate goals

By Kellan Heavican, Brownfield  •    •  Posted June 8, 2021

Kelly Brunkhorst tells Brownfield a recent study shows corn-based ethanol has a 46 percent reduction in greenhouse gas emissions. “We can take the modeling and look at it as compared to all the discussion around electric vehicles being zero emission but as we compare everything equally, we can be much lower than electric can be.  So when we talk about decarbonizing, we are the fuel that’s here and now.” [ read more … ]

Commentary

The Renewable Fuel Standard Is Now President Biden’s to Fix

By Chet Thompson, RealClear Energy  •    •  Posted June 8, 2021

Refiners envision a strong, competitive future for all liquid fuels, gasoline and ethanol alike. But penalizing fuel manufacturers with multi-billion-dollar RFS burdens isn’t going to help anyone. At the exact moment America is working toward recovery, the severe cost imposed by RFS isn’t a price America should be willing to pay. Aligning around more sustainable fuel policy—a vehicle standard for high-octane fuel—would better serve refineries and our workforce, ethanol producers and farmers, and consumers hungry for improved vehicle efficiency at an affordable cost. [ read more … ]

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