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Big Corn beats Big Oil as US hikes 2017 biofuel targets

Business

The U.S. government will require energy companies to use a record amount of biofuel next year, a victory for Midwest farmers that supply ethanol makers over oil firms that say using more biofuels in gasoline and diesel is costly and unachievable.

The Renewable Fuel Standard (RFS) program, signed into law by President George W. Bush in 2005, was designed to curb greenhouse gas emissions, promote energy independence and boost rural economies by raising demand for biofuels.

The Environmental Protection Agency (EPA) in a statement on Wednesday set the target for total renewable fuel use at 19.28 billion gallons for 2017, higher than the 18.8 billion gallons the EPA initially proposed in May. The EPA bumped up the volumes after the U.S. government revised its 2017 gasoline demand forecast.

The total requirement marked a 6 percent rise from this year’s 18.11 billion gallons and was larger than some in the industry had expected.

The EPA is required to set annual targets by the RFS for how much ethanol and biodiesel needs to be blended with gasoline and diesel.

The requirements include 15 billion gallons for conventional biofuel, which is mainly corn-based ethanol. That marked the first time the EPA has hit a target laid out by Congress in 2007.

EPA set the advanced biofuels mandate at 4.28 billion gallons, confirming figures Reuters previously reported. The advanced biofuels category includes a variety of fuels considered more environmentally friendly than ethanol.

Wednesday’s plan marked the final RFS mandates from the Obama administration, which biofuels advocates previously said had fallen short of targets to promote their fuels.

The administration began to pull back on the targets in 2013 due to what it described as marketplace challenges. Those challenges have eased as low oil prices lifted fuel demand, making the 2007 Congressional volume targets easier to reach.

“These final standards will boost production, providing for ambitious yet achievable growth of biofuels in the transportation sector,” EPA Acting Assistant Administrator for Air and Radiation Janet McCabe said in a statement.

BIG OIL VS BIG CORN

The move marked a victory for the U.S. ethanol industry after years of battling regulators to increase the mandates to the 15-billion-gallon target.

Biofuels groups have taken the EPA to court over whether the agency has the authority to lower the targets. The oil industry has said the targets were unachievable due to the “blend wall,” the saturation point for ethanol content in gasoline.

The final plan drew praise from biofuels advocates and criticism from the oil industry.

 

“The move will send a positive signal to investors, rippling throughout our economy and environment,” said Bob Dinneen, president and chief executive officer of the Renewable Fuels Association.

Shares in oil refiners Tesoro Corp, Valero Energy Corp and HollyFrontier Corp were down. Shares of biofuels producers Green Plains Inc and Pacific Ethanol Inc rose after the news.

Stephen Brown, Tesoro’s vice president and counsel, said that the plan is “unworkable” as it forces use of biofuels beyond the blend wall and said it highlights the need for a legislative overhaul of the program.

The agency established the requirements for biomass-based diesel at 2.1 billion gallons for 2018.

The increase in the advanced fuel category for 2017 is also a potential boost for biodiesel, and sent benchmark soyoil futures traded in Chicago surging by the daily price limit on Wednesday.

 

reuters



21 Comments on "Big Corn beats Big Oil as US hikes 2017 biofuel targets"

  1. Anonymous on Wed, 23rd Nov 2016 3:49 pm 

    LoL, the lunacy continues…

  2. Cloggie on Wed, 23rd Nov 2016 4:53 pm 

    There is an ongoing perception that “renewables are an extension of the fossil fuel economy”.

    That is not true, but for those who aren’t convinced, they should keep in mind that biofuels can always replace mineral oil in niche applications.

    Biodiesel yield per crop:
    https://journeytoforever.org/biodiesel_yield.html

    Yield sunflower up to 1 liter/10 m2

    http://articles.extension.org/pages/29605/sunflowers-for-biofuel-production

    (vegetables will bring more income per m2)

    https://www.youtube.com/watch?v=aOzWgyB1FSk

    Portrait of a small scale biodiesel producer. Requires $20k investment to buy a press to produce fuel from sunflower crop. Production price:

    $1.70 a gallon

  3. Anonymous on Wed, 23rd Nov 2016 5:23 pm 

    There is an ongoing perception that “renewables are an extension of the fossil fuel economy”.

    No dummy, it is not a ‘perception’, it is a what is called a ‘fact’. The minute I see you, and your friends, working in the fields 14 hours a day, producing the megatons of inputs required for your bio-fools fantasies by hand, ill gladly admit I was totally wrong. Remember, you dont get endless streams of DIESEL powered 18 wheelers delivering feedstock to a plant 100 miles from nowhere. Nor are you permitted industrial scale fertilizers, multi-million dollar combines, or any of those toys. You get to grow, harvest, and distill the organic using mostly horse drawn transport and hands on-labor for that part as well. You wont have the luxury of calling an endless stream of 18 wheelers to haul the end result away either. Production as storage would mostly be on-site as well.

    Periodically, the fruits of your labor would be picked up and hauled away to distant cities you aren’t allowed to live in. You might have a couple of tractors fueled by your bio-fools and maybe things like lamps, and what processing equipment you have, to help you see early in the morning and late at night as you toil away, but that’s about it.

    You’ll haul you ass out of bed 6 days a week, 14 hours a day, and you grow (whatever), so a small minority of elites can drive around in relative comfort, thanks to your efforts.

    Dont be so fng stupid. EVERYTHING we see around us, is an extension of the fossil-fuel paradigm. Everything. While it is quite true, you can build large, and complex societies w/o fossil fuels, we dont live in that world. And the idea you keep idiotically repeating that ‘renewables’ can exist in a vacuum and can be seamlessly produced without an industrialized FOSSIL-Fueled society to underwrite it all, is what we call, a ‘fantasy’. If such a system were cost-effective, and doable, someone, somewhere, would be doing it. And if such examples did exist in the real world, I would be very interested in them myself.

    Problem: No one is. No one. Not rag-heads in india, not eco-hipsters in California, no one.

    So put on those boots and gloves, and hop to it cloggie.

  4. Davy on Wed, 23rd Nov 2016 5:26 pm 

    We can improve on biofuels if we keep them “very” local and part of the local economy. In Iowa for example they should find a way to use biofuels in the agricultural process. This is easier said than done because of the way equipment is configured through economies of scale. Pretty much all heavy farm equipment is diesel and the cost of retrofitting that equipment or producing alternative equipment is prohibitive. Yet, the idea in the “ideal” is sound. Localize biofuel to make them cost effective per their low EROI.

  5. makati1 on Wed, 23rd Nov 2016 5:48 pm 

    Anon, biofuels are just to keep the idea, that we are not at the end point in the game of human life, from becoming too obvious. A hopey/feely idea to keep the investors on board the sinking ship Energy. Rationalizing their existence makes paychecks for a lot of authors and Big Ag.

    For the same reason, you will likely never see a real total systems report on any of the ‘alternate’ energy sources. It would prove that they are ALL net losses in energy. Your hand labor idea points that out.

    It is fun to watch the system collapse and see how many lies can be concocted to support the industry. And, it is ALL about profit in a greedy capitalist system. I anxiously await the next big financial collapse to see what they come up with next. Or will it be the end? We shall see.

  6. Cloggie on Wed, 23rd Nov 2016 6:11 pm 

    No dummy, it is not a ‘perception’, it is a what is called a ‘fact’. The minute I see you, and your friends, working in the fields 14 hours a day, producing the megatons of inputs required for your bio-fools fantasies by hand, ill gladly admit I was totally wrong.

    Listen asshole, I posted a video of a guy who does actually what you require. He is producing for the (local) market and uses his own fuel to keep his fuel production farm going. And since you are probably too stupid to find the scroll button on your mouse I’ll post it again:

    https://www.youtube.com/watch?v=aOzWgyB1FSk

    Remember, you dont get endless streams of DIESEL powered 18 wheelers delivering feedstock to a plant 100 miles from nowhere.

    I was talking in my post about NICHEs, not a replacement for Saudi-f*-Arabia.

    You’ll haul you ass out of bed 6 days a week, 14 hours a day, and you grow (whatever), so a small minority of elites can drive around in relative comfort, thanks to your efforts.

    The whole point was that GregT maintained that you can’t keep your Canadian hydro-power stations afloat without oil. Well, if that were true (it isn’t), here you have your oil to lubricate the hinges of the front door of your fancy hydro-power station, while thankfully harvesting the megawatt-hours from said power station.

    But even a dimwit like you should have gotten the message by now that the entire earth crust is one giant stinking tar ball, large enough to turn every last single O2 molecule in the atmosphere into a CO2 molecule.

    http://www.dailymail.co.uk/news/article-2593032/Coal-fuel-UK-centuries-Vast-deposits-totalling-23trillion-tonnes-North-Sea.html

    Peak oil has been called off, got that? Peak-oil is soo 2005. The sport is now to stop using the dregs.

    EVERYTHING we see around us, is an extension of the fossil-fuel paradigm. Everything. While it is quite true, you can build large, and complex societies w/o fossil fuels, we dont live in that world.

    All true. But that doesn’t mean that it needs to be like that tomorrow? More advanced societies than yours, such as Denmark or Germany, are well underway in that direction.

    P.S. Anonymous, are you a Canadian by any chance?

  7. Davy on Wed, 23rd Nov 2016 6:31 pm 

    Anymouse is in his early twenties and lives in Toronto I presume in his mom’s basement where he plays with his Xbox.

  8. Cloggie on Wed, 23rd Nov 2016 6:33 pm 

    I already thought I smelled another bad-mannered Friday.

  9. Anonymous on Wed, 23rd Nov 2016 6:39 pm 

    Lol, none of the existing plants can or will operate w/o oil. Not ‘nukes’, hydro, coal, even solar. None of them. Would it be nice if their critical systems and distribution grids they service could all be maintained by bio-fools made from switch grass or uSgov subsidized mega-scale GMO ‘corn’? Sure it would, but it also be nice if elephants could fly. That would be nice too.

    http://www.ocregister.com/articles/plant-688596-gas-energy.html

    Your stupid video doesn’t, btw, ‘prove’ anything.

    Maybe you ask farmer cracker there if him and his fellow farmers could provide enough energy subsidies to allow the ongoing operation of, lets say, one nuclear power station, or any centralized power plant really. How much land and labor would they be required to support the operation of even one FF, nuke, or @ scale wind or solar plant even?

    Run the numbers ‘asshole’ and get back to us would ya?

    Since your english is rudimentary at best, the video even says farmer Jim there is interested in ECONOMIC self-sufficiency(and only for his own farm), at least to the degree possible. Didnt say anything about powering western Europe’s BMWs, cell phones, or electric high speed rail, much less its airports.

    Yea, he might be able to run his tractor, at least until some critical part broke down and replacements were unavailable. Then he would be back to using 20% of his land to power his horses, rather than growing bio-fools for distant cities commuters.

    Maybe well get lucky and aliens will land on the white-house lawn, vaporize it, head over to Brussels, and you give you dutch some zero-point energy generators. Or if that is too exotic, maybe a second hand di-lithium power core or two. Then you could let the farmland revert back to forests.

    That would be nice too.

  10. Anonymous on Wed, 23rd Nov 2016 6:41 pm 

    LOL, nice of you weigh in there cracker boy. Hey. are the sheep keeping a smile on your dumb-ass cracker face?

  11. Davy on Wed, 23rd Nov 2016 7:34 pm 

    Anymouse are you AfricanCanadian? Blacks here in the states call white people crackers. Is that your nerd way of being hip? dumbass

  12. makati1 on Wed, 23rd Nov 2016 7:50 pm 

    Anon, I don’t look at age when I judge a person’s intelligence so, if you are in your 20’s, good for you. A good thing too because some old farts here would be on the senile, idiot level. If you are able to think outside the box, is all that is important. Most prodigies have been most productive before they reach 30. Learn skills. Keep in good health. Read. They are more important than money in the bank.

    You seem to understand total systems and see why so much of the bullshit posted here is well, pure, 100%, high grade, smelly, bullshit. Most look at the end product, not the thousand steps it took to get there, or stay there.

    What good is a solar electric system if everything that uses electric is burnt out or unavailable? LED bulbs? A simple EMT burst, either natural or man-made, will end even those, not to mention the electronic converter itself. A home system is a temporary extender, but only if you have EVERY other prep already, and own the house/property it is installed on.

    But, we keep trying to educate the uneducatable. Denial is a powerful thing in today’s heating up world. It is a type of suicidal blindness that is highly contagious. If you do not live in the Lower 48, you are one step ahead of the rest. Go for it!

  13. Apneaman on Wed, 23rd Nov 2016 7:55 pm 

    old Dutch, I bet you smell much with your superior european nose in the air all the time. You know what I think is bad mannered and cowardly? A eurotard conspiracist semi covertly trying to incite fascist violence in a country and continent across an ocean from his safe and boring little socialist Holland. I get you live in one of the safest and most boring countries on the planet, but if you want to be a shit disturber why not migrate to America since you are so obviously obsessed with it? We’ll see how much you run your mouth when the security state can kick in your door and NDAA your ass anytime. Just think how exicting it would be. You could even go see your hero give a speech live sometime – throw your panties on the stage at him. Oh daddy Donald – he’s so dreamy and powerful, I’m all moist.

    The other day you claimed to have studied physics (ya right lmao). That was when you were reading the woo woo philosophy book 30 years ago. So if you are 72 that means you were studying in your 40’s. Why so late? Had a hard time graduating from Holland high? They held you back a few years eh? Cloggie in the 12th grade – toughest 3 decades of his life. Was that some kind of Austrian physics? I only ask because you don’t know shit.

    Life is very boring in Holland, but safe.

    The Netherlands has a strange problem: Empty prisons

    https://www.washingtonpost.com/news/worldviews/wp/2016/07/08/the-netherlands-have-a-strange-problem-empty-prisons/

  14. Apneaman on Wed, 23rd Nov 2016 8:04 pm 

    Homes destroyed in Tameside flooding – now families count the cost

    http://www.manchestereveningnews.co.uk/news/greater-manchester-news/flooding-millbrook-stalybridge-tameside-houses-12213781

    Over 150 roads affected by flooding in South Yorkshire this morning

    http://www.thestar.co.uk/news/over-150-roads-affected-by-flooding-in-south-yorkshire-this-morning-1-8251071

    “MetService said Napier hit 33.3 degrees Celsius, the hottest day since records began in 1868”

    http://www.stuff.co.nz/dominion-post/news/hawkes-bay/86784149/east-coast-temperatures-soar-well-into-the-30s

    They all in on the global conspiracy to steal your fossil fuel freedums. Apparently they are incompetent since fossil fuel extraction and burning has done nothing but soar the last 30 years since the hoax started. Even though it’s been a fossil fuel lovers wet dream for 30 years and especially the last ten for America, it’s best to remain paranoid and alarmed………. just in case “they” prevent a barrel or two from being burned. Good looking out fossil fuel patriots.

  15. antaris on Wed, 23rd Nov 2016 9:22 pm 

    Ape, you can’t be to hard on Clog, the finger has been in the dyke.

  16. Cloggie on Thu, 24th Nov 2016 4:05 am 

    A eurotard conspiracist semi covertly trying to incite fascist violence in a country and continent across an ocean from his safe and boring little socialist Holland.

    ‘Inciting violence’ by posting on what ghung recently called “an obscure board”?

    I am registering what is happening in the US and if Alex Jones (without whom and other internet grands Trump would not have won) is calling for dumping California, than that exactly confirms what I already know is going to happen: yet another multi-ethnic society going to the dogs.

    The only ones who really prepared for the coming upheaval were the ones (media!) who were promoting for decades that it was a good idea to ram incompatible people into a single country.

    Here in Sweden a naive CBS team molested by their own “refugee” pets.LMAO:

    https://www.youtube.com/watch?v=sEeXd9b01uY

    Here a Canadian right-wing Jew (yes they do exist) who can’t believe what is happening in that once beautiful country, where unfortunately there are too many devirilized “boat-people” (who still hope that women are going to take over; well in Sweden and Germany they did, with disastrous results):

    https://www.youtube.com/watch?v=olH1qXW2w4M

    “Fascism”?

    Well, what we are going to see in the coming twenties in both Europe and North-America is what we saw in the thirties of the previous century in Europe: a life-and-death struggle between commies/globalists/no-border-types and nationalists (“fascists”/”racists” in commie speak). In the thirties the Right won everywhere in Europe but in the end were defeated by the kosher leftist-globalist Anglo-Soviet coalition.

    But that was then and now is now. And now all of a sudden the cards for the globalists don’t look that good anymore and the time has arrived to settle some scores.

    Russia is now anti-globalist and aspires to become a fully-fledged European nation. They will.

    Next April in France a right-winger will become president. Either very right, mass-deporting Muslims-right (Marine le Pen) or “decent” right (Fillon). Both are anti-Anglo and pro-Russia and want Paris-Berlin-Moscow.

    The German street is desperate to overthrow Merkel, the last icon of a dying liberal-globalist world order. She will be overthrown once France turns to Russia. Look at that silly face:
    http://pi-news.net/wp/uploads/2016/11/dienen2.jpg
    No future.

    The biggest mistake Helmut Kohl ever made was promoting her in a gesture of inner-German reconciliation, but he installed a dyed-in-the-wool communist who now shows her true colors.

    In the US the “deplorables” (“fascists”/”racists” or whatever term the globalist bed-wetters can come up with) have won and they won’t ever go back to the old system. Forget about a 2020 BAU election campaign between say Marc Rubio and Chelsea Clinton, America crossed the political Rubicon. Everything is now gearing up for the Great Divorce. There are several potential events that could trigger the North-American Tunesian fruit seller moment:
    1) assassination of Trump
    2) political sabotage from within the deep state
    3) global financial meltdown

    …or any other unforeseeable black swan event.

    Trump means merely a temporary postponement of the eventual breakup.

    In the coming years an EU army will be set up. The conditions for Paris-Berlin-Moscow (700 million) could be in place next year and will eventually replace the EU and everything will be in place to not only reverse 1945 but also (to some extent) 1776.

    Now the waiting is for the “American Spring” to begin and a new European Volk on North-American soil will be born out of the rubble of the NWO/MIC.

    tik-tok-tik-tok

    http://therightstuff.biz/content/images/2016/06/Boone-20pano-20from-20NPS-201200px.jpg
    (“Amerikaner” artist impression)

    #BetterWithEurope

  17. brough on Thu, 24th Nov 2016 10:15 am 

    OK
    This quite innocuous article seems to have generated a lot of trans-Atlantic animosity. Not suprising when the European and North American perceptions and experience of biofuels for ICE use are so far apart. North America can easily feed itself and have plenty of grain left over to supply many other parts of world (including the EU), where as the EU struggles. In fact many believe that Canada could possibily feed itself and fuel the majority of it’s ICE from what it harvests from the soil. From this article it would seem that USA could up its game significantly with the upper limits only being restricted by the technological ‘blend wall’. The EU has all but abandoned its biofuel ambitions set out in the 1990s of 20% by 2020 (the so called 202020 intitive). Later reduced to 10% when pointed out that 20% may require wholesale engine modifications. The target is now 5% with most fuel running on 3% at the moment. As a result of this article, this lunch time I’ve been out and sampled the fuel in my Toyota Hilux, and run it through the infra-red spectrometer. Looks more like 2% veg. oil to me. Here in the UK most bio-diesel is home produced (rape oil/canola). All home produced bioethanol is manufactured from wheat, but no-way can we be self-sufficient and most is imported from Brazil.

    Dear Cloggie, I hope your vision of a trans-European empire does not transpire. Of course the FSU nations can supply all the fossil fuel, grain and biofuel Europe could ever want, but Putin will want to be the boss. If this is the future I’m glad of Brexit, (something I thought I would never, ever say).

  18. Cloggie on Thu, 24th Nov 2016 11:55 am 

    This quite innocuous article seems to have generated a lot of trans-Atlantic animosity.

    There is not much “transatlantic animosity” here (at least not with me; for the first time in my life their is a US government I actually like); it is more bitching about manners. Anonymouse needed to be disciplined, as they used to say in the USSR of former fame.lol

    North America can easily feed itself and have plenty of grain left over to supply many other parts of world (including the EU), where as the EU struggles.

    That may have been true in 1918 and 1941.

    In 1918 when Britain finally got Germany on its knees by starving 1 million Germans as a result of a food blockade, leading a certain Austrian corporal to think that he should acquire some colonies in the East for food independence, where British French, Dutch, Spanish and Portuguese had snatched away the rest of the underdeveloped world as a little Lebensraum of their own.

    In 1940 British ambassador to Spain Hoare prevented the Spanish government from granting access to German forces to occupy Gibraltar by offering Canadian grain to Spain. A very important move.

    But today Europe, like North-America, is self-sufficient in food production (thanks to large agricultural subsidies) and a large exporter of agricultural products.

    http://tinyurl.com/hj4xnqe

    but Putin will want to be the boss.

    I don’t think so at all. Putin is scared to death for China. He may have a potent military (but still smaller than the EU combined), but his economy is weak.

    If this is the future I’m glad of Brexit, (something I thought I would never, ever say).

    I’m also glad that the Brexit vote happened, which has enabled Brussels to finally begin to setup an army of its own, anticipating an American withdrawal from Europe. The British who want Anglosphere to be on top rather than Europe, always blocked that move. No longer.

    Boris Johnson, who played a prominent role in favor of Brexit, in a last minute action even tried to push Turkey in the EU regardless. Ah well, de Gaulle was right. The British were never in the EU for any other reason than to attempt to destroy it from within.

    http://www.telegraph.co.uk/news/2016/09/27/boris-johnson-says-britain-will-now-help-turkey-join-eu-despite/

  19. peakyeast on Thu, 24th Nov 2016 1:07 pm 

    @ape: Yeah It is so ironic that the “land of the free” is the “land” that has most people in prison of all countries on earth. But at least the US has its slogan telling the opposite – nevermind about reality.

    The US could have same problem as Holland if the US didnt prohibit people from being free – and killing them for trying life as they want it.

    USAs greatest ability is to keep a straight face while telling the rest of the world how free and fair they are while being the biggest hypocrites the earth has produced in historical times.

    And for Davys sake: No china is not better, nor Russia, nor a lot of other countries. But they havent mastered the art of deception and hypocricy like the US has.

  20. makati1 on Thu, 24th Nov 2016 6:36 pm 

    peaky, a true picture of America today. American’s never look in the mirror. ^_^

  21. Gaven Rank on Sat, 24th Oct 2020 9:47 am 

    In fact, such measurements now require the most modern spectrometers. For example, to determine the presence of sulfur in oil, which is often tried to hide and conceal. That’s why we personally purchased special spectrometers from Elvatech.com for more accurate determination of the presence of some or other foreign compounds. As it turned out, there were a lot of them and we broke off the contract with the suppliers. That’s why the ability to determine these data is more important than ever. I hope I helped someone else.

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