U.S. Department of Energy

A Big Announcement on the GREET Model is Expected This Week. Here's Why Corn Farmers Should Care

Mon, 26 Feb 2024 20:58:36 GMT

The ethanol industry could see huge growth this year, but much of that hinges on how policy in Washington shapes that growth.

From EPA’s announcement late last week to allow the sale of E15 year-round in eight Midwestern states , to the highly anticipated Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) mode l - which calculates the life cycle GHG emissions for the corn ethanol pathway - leaders with the Renewable Fuels Association (RFA) showed optimism during the National Ethanol Conference last week.

“This is a pivotal year for ethanol,” Troy Bredenkamp, Senior VP: Govt. & Public Affairs at Renewable Fuels Association (RFA) told AgriTalk’s Chip Flory. “Our theme for this National Ethanol Conference was powered by partnerships. And we kind of just went right down the list of things. If they all break our way, it’s going to be a really good year for biofuels, and in particular ethanol.”

Flory spoke about that optimism during “Chip’s Corner” on U.S. Farm Report last weekend. Flory says the key statement within Troy’s interview is when he said, “If they all break our way.”

“That’s a critical point that Troy is making there,” Flory says. “There are several things on the horizon. E15 in the eight Midwest states - that’s probably going to be pushed over to 2025. Then, with E15 nationwide, we could see some movement on that.”

However, Flory says the GREET model could also be a pivotal policy point, as it’s unclear if it will make the ethanol to jet pathway clear for corn-based ethanol in the year ahead.

“These are questions that are going to have a major impact on the biofuels industry in the years ahead,” Flory says. “But here’s the problem: the Biden administration is making the same mistake that past administrations have made. What they’re doing is there trying to give a little bit to each of the interested parties in these biofuel decisions, which prevents them from going all in on biodiesel, all in on ethanol, all in on Sustainable Aviation Fuel (SAF), or all in on renewable diesel.”

Instead, Flory says when the administration tries to please all parties instead of focusing on the science, it ends up watering down the positive impact it could have on the ag industry.

“So, what we end up with is kind of some halfway efforts, rather than a full effort on the biofuels in the year ahead. That’s kind of how I see things playing out. I think it could be a frustrating year on a lot of fronts,” he says.

The ethanol industry expects some clarity on the GREET model on March 1, 2024. Flory says it’s possible EPA Administrator Michael Regan will make an announcement during Commodity Classic. Leading into that announcement, there’s a lot of anticipation on how the GREET model will be interpreted, and if it will favor U.S. corn for SAF.

So, what is the GREET model?

“The GREET model determines just exactly what the land use effect is of corn-based ethanol, and how it’s impacting how we’re using the ground for farming out there,” Flory says. “The GREET model leans more favorable to corn-based ethanol than some of the old models that are saying we’ve taken much more ground out of other areas of agricultural production and put it into corn production.”

According to the Office of Energy Efficiency and Renewable Energy , “GREET is a tool that assesses a range of life cycle energy, emissions, and environmental impact challenges and can be used to guide decision-making, research and development, and regulations related to transportation and the energy sector.”

The Office of Energy Efficiency and Renewable Energy also states for any given energy and vehicle system, GREET can calculate:

Total energy consumption (non-renewable and renewable)
Fossil fuel energy use (petroleum, natural gas, coal)
Greenhouse gas emissions
Air pollutant emissions
Water consumption

Flory says the GREET model could impact more than just corn for SAF in the U.S., as it could also have an impact globally, including when calculating the impact of crops from Brazil.

DOE Cuts $118 Million Check to Biofuels Projects

Thu, 26 Jan 2023 22:36:31 GMT

U.S. Department of Energy (DOE) on Thursday unveiled $118 million in funding to 17 sustainable biofuels projects taking place at universities and private companies.

According to DOE’s press release , the selected projects—with funding ranging from $500,000 to $80 million—will contribute to the department’s goal for cost-competitive biofuels and at least a 70% reduction in greenhouse gas emissions by 2030.

Read more: Are Landlocked Soybean Crush Facilities Destined to Survive?

“DOE investments are helping to build out a domestic bioenergy supply chain that increases America’s energy independence, creates jobs, and accelerates the adoption of cleaner fuels for our transportation needs,” said U.S. Secretary of Energy Jennifer M. Granholm.

Some of the projects include:

• Lincolnway Energy LLC , Nevada, IA: $453,000 for reduced carbon intensity ethanol through biogas from stillage and other feedstocks.

• Research Triangle Institute , Research Triangle Park, NC: $2,000,000 to turn corn stover into sustainable aviation fuel.

• AVAPCO, LLC , Thomaston, GA: $80,000,000 for Phase 2 of a biorefinery to achieve net zero aviation emissions through biofuel.

Industry responds

Emily Skor, Growth Energy CEO, applauded DOE’s biofuel effort.

“The funds awarded today by the DOE will undoubtedly accelerate the innovations taking place at U.S. ethanol plants, opening new opportunities for low-cost, low-carbon energy,” she said.

Read more: EPA Wants to Hear Your Thoughts on the Proposed RFS Levels

Skor says Growth Energy is most “excited” for Marquis, Inc.’s project , now harnessed with $8 million additional funds, which seeks to combines CO2 with low-carbon hydrogen to create a new production stream of extra-low-carbon ethanol.

According to Marquis, Inc. , the resulting extra-low-carbon, produced in Illinois, will increase ethanol’s yield by 50% without additional land or fertilizers. The company also says the product will cut emissions by 70% or more, compared to petroleum-based alternatives.

The Scoop Podcast: The Opportunities Agriculture Can’t Miss In Renewable Fuels

Mon, 09 Sep 2024 13:58:20 GMT

Tim Urban of Bracewell Technologies has advocated for clients on business tax issues, extension of temporary tax provisions, and federal tax policies within the energy sector. He says agriculture has potential game changers in the evolving energy policies, in fact, in many ways ag is in the middle of this evolution.

“I don’t think there’s ever been a time in my memory where the ag sector can pick up the phone and it gets answered at the highest level,” Urban says.

Urban will present a general session with an outlook and insights on biofuels, sustainable aviation fuels, and renewable diesel as it relates to the ag industry at the 2024 ARA Conference and Expo . And he shares more on The Scoop podcast:

“Whether it’s electricity or whether it’s fuel for your car, miraculously, ag and ag products play a huge starring role in all of it,” he says.

While liquid fuels are a “no-brainer,” Bracewell sees corn, soybeans, and other ag stocks being rich with opportunities.

As for the future of renewable energy policy, Bracewell says the November election will set the stage for what policies are pursued, but overall, he thinks the future is bright for ag’s role in renewables.

“The ag community is uniquely well positioned,” he says.

Learn more at the 2024 ARA Conference and Expo, Dec. 3 to 5 in Houston, TX.