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Governors' Biofuels Coalition
NEWS UPDATE November 19, 2014

Pricey ethanol threatens late-year corn demand pick-up

BY GAVIN MAGUIRE, Reuters  •    •  Posted November 19, 2014

While ethanol producers are concerned mainly with the price of corn, fuel blenders are motivated by the relative price of ethanol and gasoline – the two main ingredients in the U.S. fuel stream. Of the two, gasoline remains by far the chief ingredient, but fuel blenders can add as much as 10 percent ethanol to the total mix should it make economic sense to do so. Ethanol’s typical 45-50 cents a gallon discount to gasoline usually makes that calculus worthwhile. But occasionally, ethanol prices prove uneconomical to add to the mix, as was the case in 2010 and 2012 when poor growing conditions in the U.S. led to a drop in corn supplies and forced ethanol production to contract. Lately, ethanol values have returned to uneconomical territory versus gasoline, but this time the main driver has been robust ethanol demand rather than any concerns with corn availability. [ read more … ]

Ethanol Credits for 2014 Rise to 3-Month High on Biofuel

By Mario Parker, Bloomberg  •    •  Posted November 19, 2014

Certificates that track how much ethanol is used in U.S. gasoline jumped to the highest since August as rail congestion and export demand helped lift prices for the biofuel. Corn-based ethanol Renewable Identification Numbers rose 13 percent to 53.5 cents, the highest level since Aug. 7, data compiled by Bloomberg show. Ethanol rose to a premium over gasoline yesterday, compared with an average discount of about 66 cents during the past year. [ read more … ]

Whitehouse bill could pave the way for a bipartisan carbon emissions price

Jean Chemnick, E&E reporter  •    •  Posted November 19, 2014

The carbon pricing bill Sen. Sheldon Whitehouse will release later today is virtually assured to attract support only from the chamber’s Democrats. But backers of the Rhode Island Democrat’s approach — a carbon “fee” levied on emitters with revenue returned to the public — said they hope it will help pave the way for the most elusive of legislative achievements: a bipartisan climate change bill. [ read more … ]

Obama sprints into his final years with an expanding climate message

Evan Lehmann, E&E reporter  •    •  Posted November 19, 2014

President Obama is charging into his term’s fourth quarter in a climate sprint. In the last week, he talked about cutting gasoline subsidies in Asia, urged young Australians to pressure skeptical politicians and accepted a knotty adaptation report for U.S. cities. Those efforts came amid major announcements on a pact with China to control greenhouse gases and a $3 billion proposal to strengthen poor countries against climate impacts. Together, it signals the maneuvering of an administration that’s trying to take a lead role in upcoming international climate negotiations. It also marks a challenge to the rising Republican majority in Congress. [ read more … ]

Hydrogen Cars Join Electric Models in Showrooms

By KENNETH CHANG, New York Times  •    •  Posted November 19, 2014

A decade ago, President George W. Bush espoused the environmental promise of cars running on hydrogen, the universe’s most abundant element. “The first car driven by a child born today,” he said in his 2003 State of the Union speech, “could be powered by hydrogen, and pollution-free.” That changed under Steven Chu, the Nobel Prize-winning physicist who was President Obama’s first Secretary of Energy. “We asked ourselves, ‘Is it likely in the next 10 or 15, 20 years that we will convert to a hydrogen-car economy?’” Dr. Chu said then. “The answer, we felt, was ‘no.’ ” The administration slashed funding for hydrogen fuel cell research. [ read more … ]

Will the most common molecule in the universe be the fuel of the future

Julia Pyper, E&E reporter  •    •  Posted November 19, 2014

Humans have harnessed hydrogen for a variety of applications, from blasting rockets into space to making common household products like toothpaste. Now, after decades of development, hydrogen is about to find its way into the family car. In June, Hyundai Motor Co. began leasing its Tucson Fuel Cell and has pledged to produce 1,000 units globally by 2015. Toyota Motor Corp. and Honda Motor Co. will start sales of their next-generation fuel cell vehicles (FCVs) next year. Yesterday, Toyota released a video showing the Mirai, its first commercial fuel cell car. [ read more … ]

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