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Governors' Biofuels Coalition
NEWS UPDATE January 4, 2022

Top Story

Biofuels industry testifies on proposed RFS reset

By Jacqui Fatka, Farm Progress  •    •  Posted January 4, 2022

The U.S. Environmental Protection Agency heard testimony at a virtual hearing Jan. 4 from the biofuels industry on the shortfalls in the agency’s proposed rule for 2020, 2021 and 2022 Renewable Volume Obligations. In December EPA proposed RVOs that would undercut blending requirements for biofuels in 2021 and would retroactively waive 2.96 billion gallons from 2020 RVOs finalized almost two years ago. Under the proposal, 2022 volumes return to statutory levels and the administration pledges to deny all improper small refinery exemption applications, which was welcomed by those testifying. However, the action retroactively eliminating required blended gallons raised concerns.  [ read more … ]

States

New version of ethanol mandate likely to come before Iowa Legislature

By Erin Murphy, Gazette Des Moines Bureau  •    •  Posted January 4, 2022

The debate figures to renew sometime after the 2022 session of the Iowa Legislature reconvenes. Those interested parties have been discussing the proposal in the months since the last session finished, and legislative leaders said they expect to again discuss the topic again this year. The proposal may look different this time around, although elected and industry officials said the details of the proposal cannot yet be confirmed. [ read more … ]

Markets

OPEC and Russia agree to increase oil output, amid concerns about lagging production.

By Stanley Reed, New York Times  •    •  Posted January 4, 2022

The slow ramp up in production also could lead to tension with the Biden administration, which wants the producers to pump more oil in an effort to lower gasoline prices in the United States. Gas prices, nationally at $3.28 a gallon, are now about one-third higher than they were a year ago, according to the Energy Information Administration, a government agency, and contributing to rising inflation.What Saudi Arabia decides to do is crucial. The only route to meeting the scheduled increases in output would be for Saudi Arabia, which now has most of the world’s extra capacity, to agree to produce more than its quota. [ read more … ]

Commodities 2022: European biofuel mandates to structurally shift ethanol demand higher in the year

By Karim Elafany, S&P Global  •    •  Posted January 4, 2022

Following a year in which the European ethanol market experienced extreme volatility caused by lockdown restrictions, 2022 is expected to offer relatively more stability in a post-lockdown environment, supported by European biofuel mandates. While S&P Global Platts Analytics forecasts a global fuel grade ethanol surplus of 1.667 billion liters in 2022 following an estimated deficit of 607 billion liters in 2021, the structurally short nature of the European ethanol market is forecast to widen further in 2022. [ read more … ]

EIA: US biofuel capacity, feedstock consumption up in October

By Erin Voegele, Ethanol Producer Magazine  •    •  Posted January 4, 2022

U.S. biofuels production capacity expanded to nearly 20.87 billion gallons per year in October, according to data released by the U.S. Energy Information Administration on Dec. 30. Feedstock consumption was also up significantly. Ethanol production capacity remained steady in October, at 17.393 billion gallons per year, while biodiesel capacity fell slightly from 2.462 billion gallons per year in September to 2.461 billion gallons per year in October. Capacity for renewable diesel and other biofuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, expanded by 103 MMgy for the month, from 911 MMgy in September to 1.014 billion gallons per year in October. [ read more … ]

EVs

EV charging stations are annoying. Ford wants to fix them

By David Ferris, E&E News  •    •  Posted January 4, 2022

Ford is getting involved because it faces a dilemma that other automakers will also confront in the pivot to electric, a frustrating puzzle that undermines the case for EVs across the country. Its signature electric car, the Mustang Mach-E, is hitting the roads by the thousands each month. But its drivers are expressing annoyance with the charging network, especially the fast, high-voltage ones that are supposed to emulate the experience of a gas station. [ read more … ]

Tesla Smashes Quarterly Delivery Record With 308,600 Cars

By Dana Hull, Bloomberg  •    •  Posted January 4, 2022

The record quarter underscores the “green tidal wave taking hold” for Tesla and Chief Executive Officer Elon Musk heading into 2022, Daniel Ives, an analyst at Wedbush Securities, said in a note to clients. The strong results also point to robust demand in China and Tesla’s skill at navigating the global semiconductor shortage, he said. The company’s previous delivery record was 241,300, set in the third quarter. [ read more … ]

Commentary

The Electric-Vehicle Push Empowers China

By Robert Bryce, Wall Street Journal  •    •  Posted January 4, 2022

Some auto makers, including Nissan and BMW, have developed electric-vehicle drive trains that reduce or eliminate the need for rare earths. But even if the auto industry doesn’t need them, the wind-energy industry does. According to the IEA, offshore wind turbines require as much as 500 pounds of rare earths per megawatt of installed capacity, including some 400 pounds of neodymium. Those are big numbers considering that the Biden administration wants to deploy 30,000 megawatts of offshore wind by 2030. The IEA predicts that the global wind-energy industry’s need for rare earths “is set to more than triple by 2040.” [ read more … ]

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