Michigan milk-to-ethanol plant breaks ground
A Canada-based milk-to-alcohol provider has begun construction on a Michigan plant designed to produced 2.2mn USG/yr of ethanol using milk byproduct sourced from dairy farms.
Through a joint venture with the Michigan Milk Producers Association, Ontario-based Dairy Distillery will produce the biofuel using 14,000 metric tonnes/yr of milk permeate at the plant in Constantine, Michigan, which broke ground on 6 August.
The $41mn project was announced last year and is expected to begin ethanol production in early 2025. The plant received $2.5mn in funding from the state of Michigan.
Dairy Distillery uses milk permeate to produce vodka in Ontario, marketed at Vodkow. The Michigan plant will be its first to produce ethanol for fuel-use.
The company's new footprint in the US will allow it to take advantage of various federal tax credits for biofuels producers laid out in the Inflation Reduction Act.
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WMO puts likelihood of La Nina at 60pc from October
WMO puts likelihood of La Nina at 60pc from October
London, 11 September (Argus) — There is a 60pc chance of La Nina weather conditions emerging from October to February next year, the World Meteorological Organisation (WMO) said today. The chance of the El Nino pattern redeveloping during that time are "negligible", it said. La Nina generally leads to a cooling effect on a global level, while El Nino typically has the opposite effect. The weather patterns are naturally occurring, but "are taking place in the broader context of human-induced climate change" that is increasing temperatures globally, the WMO said. The past nine years have been the warmest on record, even with the cooling influence of a La Nina period from 2020 to early 2023, the organisation noted. "Even if a short-term cooling La Nina event does emerge, it will not change the long-term trajectory of rising global temperatures due to heat-trapping greenhouse gases in the atmosphere", WMO secretary-general Celeste Saulo said. Last month was the joint-hottest August on record , and was on average 1.51°C above pre-industrial levels. The Paris climate agreement seeks to limit global warming to "well below" 2°C above pre-industrial temperatures, and preferably to 1.5°C. Global temperatures have been at or close to record highs to date this year and it is "increasingly likely that 2024 is going to be the warmest year on record", EU earth-monitoring service Copernicus said last week. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Biofuel, farm groups file suit over EPA auto standards
Biofuel, farm groups file suit over EPA auto standards
Houston, 10 September (Argus) — Road fuel industry representatives have filed suit before the US Court of Appeals for the DC Circuit challenging the Environmental Protection Agency's (EPA) finalization of tailpipe emissions standards. The finalized EPA standards would force automakers to decrease the CO2 emissions of cars and trucks made between 2027 and 2032. The brief draws support from 56 groups, ranging from agriculture labor unions, the automotive industry and the American Farm Bureau Federation to organizations representing shipping, retail fuel distributors, petroleum refiners, biofuel producers, manufacturing, and corn grower associations. Several petitioners behind the brief filed a lawsuit in June of this year following regulations that the EPA said would cut road fuel consumption by 2.6mn b/d. The petitioners assert the claim that the EPA lacks statutory authority to regulate tailpipe emissions and that the regulations currently in place would favor electric vehicles over internal combustion engine automobiles. Fewer internal combustion vehicles soften the demand for renewable fuels as a result, the filers argue. According to the EPA, electric vehicles made up 7.5pc of light and medium duty vehicle sales in 2022, but by 2032, 68pc of corresponding sales must be electric vehicles to comply with the regulation. The brief goes on to scrutinize the EPA's calculations used to craft policy that support electric vehicle adoption, suggesting the finalized standards fail to account for emissions created in the production of electric vehicles as well as the ability of renewable fuels to lower emissions as a substitute good. The Renewable Fuels Association, one of the petitioners named in the brief, voiced its concerns that the EPA ignores the benefits of high octane ethanol and more fuel efficient internal combustion engines' ability to lower emissions at a lower cost to domestic consumers. It also said the tailpipe emissions standards would conflict with Congress' Renewable Fuel Standard (RFA), which mandates set volumes of biofuel in the nation's road fuel supply. "While we certainly share the Biden administration's vision for reducing carbon emissions from transportation, EPA's tailpipe rule is clearly the wrong way to pursue that goal and the agency obviously overstepped its authority," RFA chief executive Geoff Cooper said. The Illinois Corn Growers Association echoed the sentiments from the perspective of the agricultural sector, as president Dave Rylander voiced the industry group's goals of building a robust farm economy while opposing the EPA's regulations as they "exceed their authority as a government agency and jeopardize farm family profitability." The group claims that President Joe Biden's administration's target for electric vehicle growth will have adverse effects on corn demand by way of decreases in biofuel production. The EPA is expected to respond by 26 November. Members of the US House of Representatives have drafted a joint resolution attempting to block the standards from going into effect. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Port of NOLA to close prior to TS Francine
Port of NOLA to close prior to TS Francine
Houston, 10 September (Argus) — The port of New Orleans (Nola) in Louisiana and terminal operators there are limiting operations today in preparation for a full closure Wednesday as tropical storm Francine passes. Terminal operators are expected to reopen on 12 September after damages are assessed. United Bulk Terminals (UBT) issued a force majeure this morning from the Davant terminal on concerns for employee safety. The company did not disclose a timeline for reopening. UBT specializes in coal and petcoke along with other commodities. Associated Terminals will suspend operations 11-12 September and will assess damages on 13 September. The National Weather Service forecasts Francine to make landfall tomorrow on the Louisiana coast as a hurricane. Commodities including petcoke, coal, agriculture and fertilizer are likely to be affected by the port closure. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
2024 RD production outlook up, 2025 down: EIA
2024 RD production outlook up, 2025 down: EIA
New York, 10 September (Argus) — The US Energy Information Administration (EIA) today upped its forecast for 2024 domestic renewable diesel (RD) production but continued to trim its projections for 2025 as challenging economics for refiners persist. The US is expected to produce on average 208,000 b/d of renewable diesel this year, EIA said Tuesday in its latest Short-Term Energy Outlook (STEO), up by around 1pc from August's forecast. Renewable diesel consumption is expected to hit 237,000 b/d this year, an increase of 1.3pc from the prior month's STEO. But next year, EIA now expects 236,000 b/d of renewable diesel production, down by 3.2pc from the prior forecast and down by 19.7pc from the agency's initial projection in January this year of 294,000 b/d. The agency is also forecasting renewable diesel consumption to reach 255,000 b/d in 2025, a 2.3pc decrease from its estimate last month. Renewable diesel producers have struggled over the last year, as ample supply of fuels used for compliance with government clean fuel programs has helped depress the prices of environmental credits and hurt production margins. More capacity has come online this year — with EIA recently pegging production of renewable diesel and related biofuels like sustainable aviation fuel at an all-time high of 4.9bn USG/yr in June — but uncertainty persists about whether future capacity additions will come on line as planned. EIA also upped its projection for US net imports of renewable diesel, raising its 2024 forecast by 7.1pc to 30,000 b/d and its 2025 forecast by 5.6pc to 19,000 b/d. While a federal tax credit starting next year is expected to discourage biofuel imports, since the incentive can only be claimed for fuel produced in the US, EIA's projections have inched upwards over the course of this year. Biodiesel output target up US biodiesel production this year is expected to average 105,000 b/d, up by around 1pc from August's STEO. US Biodiesel consumption should reach 121,000 b/d this year according to the EIA, down by 0.8pc from the prior forecast. For 2025, EIA raised its outlook for biodiesel production by 5.3pc to 100,000 b/d and for biodiesel consumption by 4.4pc to 94,000 b/d. Today's outlook also includes for the first time more granular data about biodiesel and renewable diesel "that better capture how biofuels are being consumed and the share of total distillate fuel they account for," EIA said. While the agency expects total distillate fuel oil consumption to fall slightly this year, biofuels will account for 9pc of that consumption, up from 8pc last year and 5pc in 2022. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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