biofuels

As a candidate, Donald Trump supported corn ethanol and, one month after taking office, he reiterated his view, telling the National Ethanol Conference, "renewable fuels are essential to America's energy strategy." The industry is under perennial attack by the oil industry and by some environmental groups, that want to reduce or eliminate the federal mandate to use biofuels.

There are plenty of reasons for optimism in the corn ethanol industry — record production, a higher mandate for biofuels in the gasoline supply and the inauguration of an ethanol supporter, Donald Trump, as president. All the same, the industry is looking for reassurance that the Trump administration will be a friend, considering that prominent federal appointments have gone to ethanol critics.

Bioenergy crops such as switchgrass are highlighted as a potential alternative source of farm income but there is no market for them at present. USDA economists say 25-29 million acres of cropland, equal to half the area planted to wheat annually, would be needed for a bioenergy crops that would be generate as much electricity as hydropower. That's around 6 percent of U.S. production, if there was a federal bio-electricity policy.

With President-elect Donald Trump figuratively looking over his shoulder, Scott Pruitt assured Farm Belt senators that he will support the Renewable Fuels Standard, which guarantees biofuels a share of the gasoline market, if he is confirmed as EPA administrator. Pruitt is state attorney general in Oklahoma, an oil-producing state, which raised questions about whether he would enforce the biofuels mandate.

A U.S. bankruptcy judge approved the sale of Abengoa Bioenergy's 25 million-gallon-a-year cellulosic ethanol plant in Hugoton, Kan., to newly formed Synata Bio for $48.5 million, or 12 cents on the dollar, says Ethanol Producer Magazine. The Hugoton plant, which opened in October 2014, is one of three commercial-scale cellulosic plants in the country.

The fuel industry will be obliged to use 15 billion gallons of corn-based ethanol in 2017, said the EPA. It was the first time the agency has set the target for the biofuel at the maximum allowed by the 2007 energy law. The 500-million-gallon increase in the ethanol mandate comes at a time when U.S. gasoline consumption is rising and making it easier to consume larger volumes of biofuels.

Using a 20 percent blend of alternative jet fuel produced from wood, Alaska Airlines sent a passenger flight across the United States from Seattle to Washington's National Airport in a breakthrough for bio-energy. The airline said the alternative fuel, made from "forest residuals" remaining after timbering, produces from 50-80 percent fewer greenhouse gases than petroleum fuel when calculated on a life-cycle basis.

Myron Ebell, the head of Donald Trump's transition team for EPA, "is a long-time opponent of the Renewable Fuels Standard and ethanol policies," says DTN. In addition, Ebell, who works at the libertarian Competitive Enterprise Institute, "also is a renowned skeptic of climate science."

National policy adviser Sam Clovis says the Trump campaign is "looking very hard at putting a farmer or rancher in charge of the EPA." Given the impact that federal regulations can have on the sector, Clovis said on the AgriTalk radio program, "we think this would be an appropriate issue for us."

In a preliminary ruling, China's Ministry of Commerce said it will put a duty of 33.8 percent on shipments of distillers dried grains from the United States, a step that could affect ethanol makers and rebound against U.S. soybean meal usage, said Agrimoney. Some in the commodity trade speculated China was playing tit-for-tat with a U.S. complaint to world trade authorities over Chinese farm subsidies.

The leading contender for Interior secretary if Republican Donald Trump becomes president is Forrest Lucas of Indiana, the founder of Lucas Oil, says Politico, citing two sources familiar with the campaign's deliberations. Lucas is a long-time opponent of biofuels and a founder of a group that challenges animal-rights organizations.

A controversial new study, funded by the American Petroleum Institute, found that, over an eight-year period, cars fueled by corn ethanol would have caused more carbon pollution than using gasoline, reports Climate Central.

Advisers for Democratic presidential nominee Hillary Clinton sought advice from California regulators on ways to revamp U.S. biofuel mandates, said Reuters. Corn-based ethanol is popular in the Midwest so the possibility of change in the so-called Renewable Fuel Standard could hurt her in corn states "like Iowa, where she faces a tough battle against Republican rival Donald Trump in the Nov. 8 election."

The 45Z tax credit, intended to encourage the development of sustainable aviation fuel and other low-carbon fuels, would be available until 2034 and limited to domestic feedstocks under companion bills filed in the House and Senate on Tuesday. Farm groups said the legislation would allow time for domestic production to rise while discouraging a flood of imported oil, grease, and tallow.