Ringneck Energy Walter Wendland Little Sioux Corn Processors Steve Roe Commonwealth Agri-Energy Mick Henderson Western Plains Energy Derek Peine Front Range Energy Dan Sanders Jr.
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Upcoming Events
2025 International Biomass Conference & Expo MARCH 18-20, 2025
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Now in its 18th year, the International Biomass Conference & Expo is expected to bring together more than 900 attendees, 160 exhibitors and 65 speakers from more than 25 countries. It is the largest gathering of biomass professionals and academics in the world. Powered by Biomass Magazine, the conference provides relevant content and unparalleled networking opportunities in a dynamic business-to-business environment. In addition to abundant networking opportunities, the largest biomass conference in the world is renowned for its outstanding programming, maintaining a strong focus on commercial-scale biomass production, new technology, and near-term research and development. Join us at the International Biomass Conference & Expo as we enter this new and exciting era in biomass energy.
2025 International Fuel Ethanol Workshop & Expo June 9-11, 2025
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Now in its 41st year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine —that maintains a strong focus on commercialscale ethanol production, new technology, and near-term research and development. The event draws more than 2,300 people from over 31 countries and from nearly every ethanol plant in the United States and Canada.
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June 9-11, 2025
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The Sustainable Fuels Summit: SAF, Renewable Diesel, and Biodiesel is a premier forum designed for producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF) to learn about cutting-edge process technologies, innovative techniques, and equipment to optimize existing production. Attendees will discover efficiencies that save money while increasing throughput and fuel quality. Produced by Biodiesel Magazine and SAF Magazine, this world-class event features premium content from technology providers, equipment vendors, consultants, engineers, and producers to advance discussions and foster an environment of collaboration and networking. Through engaging presentations, fruitful discussions, and compelling exhibitions, the summit aims to push the biomass-based diesel sector beyond its current limitations. Co-located with the International Fuel Ethanol Workshop & Expo, the Sustainable Fuels Summit conveniently harnesses the full potential of the integrated biofuels industries while providing a laser-like focus on processing methods that deliver tangible advantages to producers. Registration is free of charge for all employees of current biodiesel, renewable diesel, and SAF production facilities, from operators and maintenance personnel to board members and executives.
CI Reduction: The Key To Growth Here and Abroad
While the actions U.S. ethanol producers are taking to decarbonize, from backing low-carbon farming to investing in CCUS, are almost entirely driven by domestic policy incentives, their benefits will be global.
This premise becomes clear in our page-12 cover story, “Aligning On Programs and Priorities,” which focuses on the U.S. Grains Council’s intrepid effort to sustain and grow markets for ethanol around the world. As the story explains, it’s a long-game effort—one of patience, persistence and diplomacy—to build what will soon be a 2-billion-gallon marketplace for U.S. ethanol beyond our borders. Indeed, the industry set a record in the 2023-’24 marketing year, exporting more than 1.75 billion gallons of ethanol, thanks to strong demand near and far.
With alcohol-to-jet (ATJ) being hailed as the next big growth driver for ethanol globally, the USGC has wrapped sustainable aviation fuel into its new projections and priorities. The organization knows ATJ will drive future demand for ethanol, but questions remain about what type of product the international marketplace will take—grain ethanol, cellulosic ethanol or both. Parallel to those advocating for reasonable rules and incentives for domestic SAF, the USGC has joined a chorus of industry voices calling for the inclusion of low-carbon grain ethanol in the international SAF arena; the idea being that it is necessary today, and a bridge to lower-carbon feedstocks in the future. Indeed, the necessity of producing sustainable-certified, lowcarbon corn ethanol is not only crucial for new markets like ATJ, but to recapture traditionally big export destinations like the EU. As one of our sources says in the story, “The ethanol of 10 years ago is simply not going to be the competitive supply in the world going forward.”
Making low-carbon intensity (CI) corn ethanol demands multi-prong strategies that couple responsible farming practices with innovative, CI-reducing ethanol production tech. None of it is cheap, but one company is now offering producers a way to become more efficient, right now, without spending a dime. Skyven Technologies has rolled out a steam-generating heat pump in an “energy-as-a-service” package that gives ethanol producers a zero-capex decarbonization solution. In “No-Cost CI Reduction,” on page 18, we explain how the company gets paid when its clients reduce their energy spend.
Next, in “Strength Through Diversification,” on page 24, we share the story of Nebraska’s longest-operating ethanol producer, Chief Ethanol, which is on a CI-reduction quest of its own. Chief, which is preparing to celebrate forty years of production at the older of two ethanol plants it owns, embraces the diversification strategy that defines its parent company, Chief Industries, which marked a big anniversary of its own this year, turning 70.
Ultimately, getting into the low-CI ethanol market—anywhere in the world—is no longer just about plant efficiency, but how low-CI ethanol processes intersect with climate-smart ag and a veritable matrix of compliance, carbon and tax credit considerations. In “Decoding Decarbonization,” on page 28, we unpack a two-part webinar series held by EcoEngineers in October, which parceled out various decarbonization strategies in the context of reducing emissions to maximize revenue.
Putting the Latest Science in Front of Climate and Energy Leaders
Growth Energy recently worked with the Energy Futures Initiative Foundation, led by former U.S. Secretary of Energy Ernest J. Moniz, on new research detailing pathways to further decarbonize bioethanol to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.
We officially released the study in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC this September. And just days later, I presented the findings again on stage at the National Clean Energy Week policymakers symposium in Washington, D.C.
As I said in my introduction of Secretary Moniz at the CGI event, ethanol is the only viable solution to decarbonize the liquid fuel sector and other hard-to-abate sectors like heavy-duty vehicles and aviation. This research both demonstrates the positive impact ethanol has had already and offers a path forward for making it an even more powerful tool in the effort to decarbonize transportation.
The report analyzed the cost-effectiveness of 21 different measures taking place on farms and at biorefineries across the U.S. It also looked at the potential of lower-carbon bioethanol to help reduce emissions for on-road fuels and close the “emissions gap” in hard-to-abate sectors like aviation.
“[A]s we look at where we have come, the reality is the pathway to low-carbon liquid fuels has been tricky,” said Moniz. “It's been difficult. The only sector that has succeeded, frankly, in the United States is [ethanol], where over the last two decades about [a] 23% reduction in carbon intensity has been accomplished, leading to a situation today of being greater than 40% below the analogous carbon intensity for the petroleum derived fuel.”
To build on that progress, EFIF examined decarbonization strategies across the entire supply chain— fertilizers, agriculture, transport, refineries and end use. They found nine currently available and affordable pathways, which together could help renewable vehicle fuels achieve emissions reduction goals.
“If we equate this to a cost per ton of carbon avoided in emissions [we get] less than $64 per ton, sometimes actually negative cost per ton of carbon,” added Moniz.
Three pathways were particularly important, said Moniz, because they “could get us about 90% of the way to carbon neutrality by a decade from now, and to slightly negative by 2050.” Those are carbon capture, low-carbon energy use at biorefineries—including the use of combined heat and power—and climate smart agriculture.
To learn more about the new research, visit growthenergy.org/efif.
Emily Skor CEO of Growth Energy
Parallel Paths: Ethanol LCA and Policy Across the Border
At the start of 2024, I set out to focus my columns on life cycle carbon assessment (LCA), a topic that might seem unusual for a layperson like me. Yet, in over a decade of work on renewable policy, I’ve seen LCA transform from a niche technical field into a cornerstone of policy discussions in both Canada and the U.S.
Carbon-focused fuel and investment policies increasingly rely on LCA. Properly done, LCA spans supply chains, unifies markets, and sharpens investment opportunities for businesses and lawmakers aiming to improve environmental performance. Despite differing policy approaches, the growing significance of LCA signals a fundamental shift in how governments and investors assess sustainability.
Both Canada and the U.S. have designed renewable fuel policies based on carbon intensity. Canada’s Clean Fuel Regulations (CFR), replacing its renewable fuels standard, uses LCA to guide credit generation and compliance. This emphasizes reducing “well-to-wheel” emissions, allowing Canadian ethanol producers to align with international low-carbon markets.
In the U.S., the Inflation Reduction Act (IRA) extends LCA’s role, using it not just for compliance but also as a direct investment driver. The IRA’s tax credits for low-carbon fuels reward reductions in carbon intensity, creating incentives for producers to invest in cleaner technologies. These incentives are crucial for further decarbonizing ethanol and scaling up projects like sustainable aviation fuel (SAF) and e-methanol for marine transportation.
For ethanol producers, these policies and their differences—are critical to staying competitive. In Canada, the CFR supports market stability and trade, while in the U.S., the IRA’s investment focus could spark rapid innovation and capital inflows. Both offer the policy reliability producers need.
At last month’s 4th Annual U.S. and Canada Biofuels Summit in Washington, senior biofuel and agriculture leaders from both sides of the border highlighted the need for clarity and alignment in biofuel policy. While the CFR and IRA show progress, differences suggest there are lessons to be learned.
The future of ethanol will be shaped by our industry’s ability to keep science-based carbon intensity at the forefront. Both CFR and IRA are steps in the right direction, but our success hinges on LCA models that assess and reward investments reducing emissions. For ethanol producers, this means staying engaged, innovating, and being open to cross-border collaboration. As the ethanol industry navigates evolving low-carbon policies, harmonizing efforts across borders and LCA models is key. Science-based assessments validate that biofuels are produced and consumed responsibly. LCA models must keep recognizing achievements in responsible growing practices and agricultural innovation.
Finally, policy and science must work in tandem. Refining LCA models to keep pace with innovation will attract investment and drive technological advancement. The ethanol industry in Canada and the U.S. is capable—now is the time to demonstrate our coordination.
Andrea Kent
Past President and Board Member,
Renewable Industries Canada
Vice President of Industry and Government Affairs, Greenfield Global Inc.
BUSINESS BRIEFS
PEOPLE, PARTNERSHIPS & PROJECTS
Hydro-Thermal Celebrates 90 Years of Operation
Hydro-Thermal Corporation, a Wisconsin-based company well known in the ethanol industry for its direct-steam injection Jetcooker, is celebrating its 90th anniversary—a long history of innovation and excellence in steam heating. As HydroThermal looks forward to the next 90 years, the company remains steadfast in its mis-
sion to “lead, innovate and provide the perfect temperature, every time.”
Hydro-Thermal has a rich history dating back to the early 1930s. From its beginnings in Wisconsin’s paper mills to its current global presence, the company has continually evolved, driven by a commitment to American-made, cutting-edge tech-
Growmark Purchases Stake in Big River Resources
Growmark has made an investment in Big River Resources LLC, an ethanol production company headquartered in West Burlington, Iowa, effective September 18.
Growmark CEO Mark Orr said Growmark believes ethanol will continue to be a strong driver of the agricultural industry with the potential for new and exciting in-
novative uses such as a feedstock for Sustainable Aviation Fuel.
“Our investment in Big River Resources aligns with Growmark’s strategic goals to diversify and strengthen our operations. This investment will enable us to capture new revenue streams and provide added value to our farmer members,” he said.
RFA Elects 2025 Board and Leadership at Annual Meeting
In late September, the Renewable Fuels Association elected its officers and board of directors at its annual membership meeting in Milwaukee. Jeff Oestmann, CEO of Aztalan Bio, near Johnson Creek, Wisconsin, was elected chair. Oestmann’s long career in ethanol and agriculture includes leadership roles at Granite Falls Energy, Syngenta and East Kansas Agri-Energy.
RFA’s board also elected Derek Peine, CEO of Western Plains Energy in Oakley, Kansas, as vice chairman.
Others elected to RFA board leadership are Tim Winters, president and CEO of Western New York Energy, as board secretary, and David Zimmerman, CEO of Big River Resources, as board treasurer.
nology and customer satisfaction. “This legacy of innovation has been carried forward through generations of the Zaiser family and the dedication of its employees, each leaving an indelible mark on the company’s journey.”
In addition to being the sixth largest ethanol producer in the U.S., Big River’s operational footprint in Illinois, Wisconsin and Iowa aligns with the Growmark System, providing greater access to the upstream value added to the corn produced by the company’s farmer customers, a Growmark announcement stated.
Elected to leadership of the Renewable Fuels Foundation for 2025 were Chairman Neal Kemmet, Ace Ethanol; Vice Chairman Wayne Garrett, Chief Ethanol Fuels; and Treasurer Eric Baukol, Redfield Energy.
Nebraska Ethanol Board Welcomes Two Ethanol Producer Advisors
The Nebraska Ethanol Board welcomes two Nebraska ethanol producers to the NEB’s newly-created ethanol producer advisor roles. Todd Good from Archer Daniels Midland joins as an advisor representing producers with an annual cumulative production capacity above 100 million gallons; and Joe Shanle from Trenton Agri Products
joins as an advisor representing producers with an annual cumulative production capacity below 100 million gallons. Good and Shanle were confirmed in their new roles by a board vote at the August NEB meeting.
“We’re very excited to welcome Todd and Joe to their new advisory roles,” NEB Executive Director Reid Wagner said. “They
BP Completes Acquisition of Bunge’s Share of
BP Bunge Bioenergia
Bunge Global SA announced that it has completed the previously announced sale of its 50% share in Brazil-based BP Bunge Bioenergia to BP. With the transaction complete, BP now owns 100% of the business.
Bunge and BP in July 2019 announced plans to create the BP Bunge Bioenergia joint venture (JV), which combined each
company’s Brazilian biofuel, biopower and sugar businesses into a 50:50 standalone JV. The JV was officially launched in December 2019. On June 20, 2024, BP announced an agreement to acquire Bunge’s interest in the company.
With the acquisition now complete, BP Bioenergy now operates 11 sugarcane mills across five Brazilian states. The com-
Gevo Announces Agreement to Purchase Red Trail Energy
Gevo Inc. announced in September that it has entered into a definitive agreement to acquire the ethanol production plant and carbon capture and sequestration (CCS) assets of Red Trail Energy LLC for $210 million. Gevo plans to add net-zero sustainable aviation fuel production capacity to the site.
Red Trail Energy is a 65 MMgy ethanol plant located in Richardton, North Dakota. The facility began operating its CCS project in June 2022. Gevo estimates the company’s existing CCS assets have a total sequestration capacity of 1 million metric tons per year. Approximately 160,000 metric tons of that capacity is currently being utilized.
both bring tremendous experience and knowledge of the ethanol industry in Nebraska. Their voices will be crucial to the NEB moving forward.”
pany estimates those mills have the capacity to produce approximately 1.7 million metric tons of sugar and 1.7 billion liters (449.09 million gallons) of ethanol annually. The mills also produce approximately 1,400 gigawatt hours per year of electricity from sugarcane bagasse.
The transaction is expected to close by the first quarter of 2025, subject to Red Trail Energy shareholder approval, regulatory approvals and other conditions. Gevo expects to retain all of the approximately 50 full-time employees currently operating the assets being acquired.
ALIGNING ON PROGRAMS AND PRIORITIES
Among the current primary focus areas for the U.S. Grains Council are sustainable aviation fuel, building and expanding global markets and encouraging parallels between U.S. carbon programs and others around the world.
By Lisa Gibson
The U.S. Grains Council is investing a “remarkable amount of time” exploring avenues to better fit environmentally friendly U.S. ethanol into varying compliance programs around the globe, says Hagan Rose, USGC’s ethanol advisory team leader.
The process is time-consuming, the game is long, but the payouts are worth it. The U.S. ethanol industry set a new export record in the 2023-’24 marketing year— exceeding 1.75 billion gallons. Impressive, given the change in top markets in the past
few years. Back in 2017 and 2018, Brazil and China were U.S. ethanol’s two largest importers. In 2023-’24, though, both imported miniscule amounts.
“We’re setting a new record without exporting much at all to those two biggest markets that were around in the 2017-’18 marketing year,” says Cary Sifferath, vice president of USGC. “That alone shows the benefit of the work.”
Canada, by far the largest market currently, implemented its Clean Fuel Regulations in July of 2023. “Some of the work we did two or three years back helped lead to that,” Sifferath says, citing the allowance of an aggregate U.S. ethanol carbon intensity score, versus plant-by-plant.
Sifferath is quick to point out that new markets are not just USGC wins—the council works with local governments, industry associations and U.S. government affiliates on foreign soil to develop relationships that benefit U.S. ethanol. It’s about diplomacy—local partnerships increase the chances of support, he says, as many governments aren’t likely to change policy based on foreign input.
“We like to work with like-minded people on the ground ... having discussions on the benefits that ethanol blending can have on [reducing] air pollution and meeting carbon reduction goals,” Sifferath says.
Emphasis On SAF
In early 2024, Mark Ingebretson joined USGC as its sustainable aviation fuel consultant, a first for the council. “Mark has worked with lots of major petroleum markets, so having his expertise on staff for us has been a really big positive,” Sifferath says.
In his first year in the role, Ingebretson has been working to identify the lowhanging fruit in export markets for alcoholto-jet fuel (ATJ), focusing first on Asia, specifically South Korea, Taiwan, Thailand and Japan. “We feel Asia is probably the ripest area,” he says. “We’ve talked about ATJ, what their priorities are, and really just an introduction and starting to get those con-
versations going.” His meetings have included trade groups and potential SAF producers in those countries.
Ingebretson is also exploring India, the European Union, South America, Mexico and more. He is casting a wide net in this education and connection phase, he says.
Ingebretson SAF Consultant U.S. Grains Council
Canada is also a focal point for SAF market development, as British Columbia has already implemented a 1% SAF mandate that increases to 2% in 2025. The amount of ATJ used to meet that target will likely be limited initially, Sifferath says. “But it’s great to have a province in a country like Canada that’s already putting in those mandates.”
But Canada, like many European countries, is prioritizing second-generation feedstocks in its SAF programs. Ingebretson argues that waiting for those feedstocks to be economically viable slows progress. “These first-generation feedstocks are available now, they have abundant supply, there’s
RISING TIDE: With the demand for low-carbon liquid fuels growing globally, the U.S. ethanol industry exported a record 1.75 billion gallons of ethanol in marketing year 2023-’ 24.
PHOTO: STOCK
Mark
Exports
a mature supply chain available to them. I think we can all agree that second-generation feedstocks are a good thing, but don’t slow down progress ... [they should] consider using corn ethanol as a feedstock for producing SAF now.
“We have to sell the message that we’ve got to use first-generation as a bridge, with the hope, then, that it will always be in the mix.”
Sifferath says it’s paramount to address any global policy mandates that preclude ethanol from contributing to carbon reduction goals.
One of the largest hurdles Ingebretson is up against is the international use of CORSIA versus the U.S.’s new 40B GREET model. “From an international perspective, they still rely on CORSIA, which has some issues and overstates carbon emissions from indirect land use change (ILUC) and does not allow for some new technologies like
carbon capture, like climate smart agriculture, things of that nature,” he says. “[SAF is] going to be a continued large priority and it’s just a matter of sticking with it and going through this sometimes bumpy ride and finishing it out.”
Global GREET
Ingebretson hopes third-party studies and papers on ILUC and the merits of ATJ will enhance his key points in foreign markets for SAF and perhaps even promote 40B GREET use internationally.
“They will have to stop being so rigid on their objection to first-generation feedstocks, look at the actual data, start allowing that as an acceptable feedstock and get more organizations to start pushing [the International Civil Aviation Organization] to accept another model like the 40B GREET alternative or update CORSIA.”
Even for on-road fuels, the requirements for greenhouse gas reduction, globally, are tightening, Rose says. “We see more stringent requirements in Canada [and] Europe—and I believe Central America
Cary Sifferath Vice President U.S. Grains Council
Hagan Rose Ethanol Advisory Team Leader
U.S. Grains Council
will follow the lead in Europe. So to really show the environmental benefits of ethanol is key for our continued growth in export markets.
“The ethanol of 10 years ago is simply not going to be the competitive supply in the world going forward. We have to show the benefit we already provide.”
In the 2023-’24 marketing year, the U.S. missed out on export gallons to the European Union as a result of lack of compliance with International Sustainability & Carbon Certification mandates. Of a potential 550 million gallons, the U.S. exported about 330 million, with Brazil stepping in to meet the remainder of the EU’s demand. “The EU paid more for their ethanol because we didn’t meet compliance,” Rose emphasizes. “That’s a missed opportunity.”
The EU requires a GHG reduction of better than 50%, proven through ISCC compliance. But with the ethanol industry
collectively looking toward carbon reduction tactics, Rose says, “We’re heading in the right direction. We have to do everything we can to make it as easy as possible from the farmer through the ethanol producer. It has to align and recognize the benefit it brings for the export market.”
Promising Destinations
Rose says a promising export market needs three factors: political will, economics and logistics. “[USGC] can help with a couple of those,” he says. “We can help show the value of the material in the fuel blend, we can show the technical aspects of blending and the benefit of the molecule from an economic and environmental standpoint. But we don’t build tanks around the world, so logistics is something we all have to figure out together.”
When Rose searches for potential export markets, he looks for logistics. “Hav-
ing tanks to store ethanol is a huge piece of what I look for on the commercial side. I’m immediately energized when I find that ... they’re ready to blend.”
USGC has sent three delegations to Nigeria in the past year, visiting the Dangote Refinery in Lagos. “The one thing that really stood out in that visit to the Dangote refinery was that they have tanks,” Rose says. “They built 30,000-cubic-meter tanks, and on those tanks it says ‘ETHANOL.’ They’re ready for what is to come.”
Nigeria is absolutely one of the top promising export markets, Rose and Sifferath agree, and Dangote has the potential to blend and refine for domestic use, as well as for re-export to surrounding countries and even the EU. “That’s a big, big potential growth market going forward,” Sifferath says.
“We still have some work to do to confirm there’s a blend policy,” Rose says.
SOURCE: US GRAINS COUNCIL
“USGC has had technical staff in Nigeria. So providing that resource, then knowing the opportunity is there to start moving the fuel is really exciting.”
The Philippines is already a top 10% export market for U.S. ethanol, with its 10% domestic mandate and new discretionary blend up to 20%. Indonesia and Vietnam are also starting to blend at lower levels. “These are large and growing gas markets where there is potential for policy changes going forward that can open up those markets in the coming year or two,” Sifferath
says. Some ethanol is going to Singapore, a primary octane market, today that is then blended for Indonesia.
Japan holds both future promise and past success, as the country has updated its policy to allow 100% of its ETBE to come from U.S. ethanol, Sifferath says. “We’re working closely with Japan and hope to see them [move] towards direct blending of ethanol at a higher level than today with just ETBE in gasoline.” The U.S. is moving about 100 million to 120 million gallons of ETBE from ethanol to Japan.
In Central America, Guatemala and Costa Rica are showing a commitment to move toward a sustainable blend, Rose says. “I see that as an opportunity with those Central America countries looking at programs similar to ISCC. As they send their product to the EU, we are able to backfill.”
USGC sent a delegation to Scandinavia in 2024 as well. “We went to understand better what’s changed since the Ukraine war, what are the opportunities to grow those blends and what’s the European policy as a whole,” Rose says.
Sifferath adds, “Those countries are very much in favor of renewable fuels and reducing carbon, but it’s part of the front as we battle with Europe on how much grain-based ethanol can meet their growing fuel-grade or on-road ethanol demand. They do have a cap on how much can be grain-based.”
“We’ve been fortunate to see pretty remarkable growth in the last year, with some of our existing markets: Canada, EU, Colombia,” Rose says. Despite the counter-
HIGH-WATER MARK: It was a busy year for the U.S. Grains Council, making headway in potential new export markets, celebrating successes and adding a new, dedicated sustainable aviation fuel position.
PHOTO: STOCK
'It can be a good market for U.S. ethanol if we can get the policy to fit right and allow for 10% ethanol blending across the Mexico market.'
- Cary Sifferath
duty case in Colombia, the country sits at No. 5 on the U.S. export list. The EU is the fourth-largest market today, with work ongoing to certify more ethanol plants to export there, Sifferath says.
Canada, of course, remains a focal point for USGC, as its provinces implement and expand blending mandates. “We see potential for continued growth as Canada looks to increase blending levels, province by province, possibly as high as E15 in some bigger gas-demand provinces,” Sifferath says.
Mexico, with new President Claudia Sheinbaum, looks promising, as she has a background in science and engineering, and has been a voice for the benefits of renewable fuels for Mexico. “We’re hoping Sheinbaum’s administration will have a friendlier view on renewable fuels and having ethanol be part of that moving forward,” Sifferath says.
Rose says Mexico could become a 300 million-gallon market. “It can be a good market for U.S. ethanol if we can get the policy to fit right and allow for 10% ethanol
blending across the Mexico market,” Sifferath says.
Clearly, the global demand exists and, if all of USGC’s focus markets align, U.S. ethanol could be on its way to becoming a 2 billion-gallon export market, Rose says.
Meanwhile, the work continues, with key USGC staff and leaders traveling the world and continuing to lay the groundwork for new and expanded opportunities. The emphasis on aligning guidance and mandates will remain.
“We need to find ways for our programs to align with the world,” Rose says. “We’re never going to have the same spec everywhere. But we should be able to get closer to global agreement on carbon.”
Author: Lisa Gibson lisa.gibson@sageandstonestrategies.com
LEADING LOGISTICS: Dangote Refinery in Lagos, Nigeria, has storage tanks in place as it works with USGC to set up markets for both domestic and export blends.
PHOTO: US GRAINS COUNCIL
NO-COST CI REDUCTION
A steam-generating heat pump technology available in an energy-as-a-service package is giving ethanol producers a zero-capex decarbonization solution.
By Luke Geiver
Skyven Technologies has rolled out an energy-saving system—and an alternative funding method—to help ethanol plants across the U.S. decarbonize profitably. At Western New York Energy, Skyven has put its thermal expertise and unique project finance model into operation. In late September, the company announced the official deployment of its industrial steam-generating heat pump at the 63 MMgy plant near Medina, New York. Skyven calls the technology platform used at WNYE and other industrial sites Arcturus.
The system captures low-temperature heat rejected from industrial processes, increases the temperature of that steam, and then redistributes the altered heat (at the same temps, pressures and quality needed) to existing boilers. The “energy-as-a-service” (EaaS) model Skyven provides with Arcturus means the funding, design, build-out and maintenance of its thermal tech are all provided to the partnering facility (WNYE, for example) for the life of the contract at no cost to the project partner.
With Arcturus deployed, Skyven’s leadership team believes an ethanol plant can eliminate 57% of facility emissions and 100% of process steam emissions—reducing its carbon intensity score by up to 10 points. On average, the company says, an ethanol plant can save more than $350,000 per year by running the system.
“Skyven’s mission is to decarbonize industrial process heat,” says Chris Barnhill, director of marketing. “We partner with industrial manufacturers to help them decarbonize profitably.”
Skyven Gets Started
The company formed in 2013 with different industrial heating solutions than it offers today. Originally, its technology focused on solar thermal collection offered to customers in an EaaS package—a business model Skyven maintained after pivoting to steam-generating heat pumps.
Barnhill says early conversations with industrial clients helped the comapny understand three things: decarbonization solutions must be cost-competitive with existing boilers; existing processes can’t be disrupted for integration into on-site heat sources; and facility downtime or loss of production is not an option.
Arcturus was created by a team of engineers that now works out of Texas and California to meet the challenges of those three things learned from industry. Their work to date has created a system that is cost competitive with boilers through “coefficient of performance” (COP) metrics, innovative fuel-switching mechanisms and easy integration into existing natural gas boiler systems.
The technology used by Skyven today is made up of what the company calls building blocks housed on modular skids. Each skid is shipped to a facility where the entire system
is assembled on site. The timeline for construction and commissioning is roughly four months. According to Barnhill, the system operates as an external retrofit to manufacturing facilities and integrates only within the plant’s steam header and heat rejection system (which, he adds, will most likely be the thermal oxidizer exhaust for ethanol plants).
Because the system has full redundancy with existing boilers, there is no dedicated downtime required for installation, commissioning or maintenance. Once the system is operating, that redundancy enables a fuelswitching strategy. With the strategy, steam can be generated by the lowest-cost fuel source at any given time.
Skyven’s tech is suitable for a range of industries. For the pulp and paper sector, the company’s steam-generating heat pump can provide a facility with an annual savings of $830,000. In the chemical production space, savings per facility could equal $807,000 per year. Food and beverage plants could save nearly $175,000 per year.
The U.S. Department of Energy recognized Skyven’s unique approach to steam capture and re-use earlier this year. DOE selected Skyven for funding set aside for companies addressing climate challenges through technology or financing models.
When the DOE announcement was made, Blaine Collison, executive director at the Renewable Thermal Collaborative, said “industrial heat pumps have the opportunity to improve efficiency and dramatically
cut emissions from industrial thermal processes.”
Although the Skyven deployment of Arcturus at WNYE is a first-of-its-kind in the U.S. ethanol industry, facilities in Europe have already added high-tech heat pump strategies. In Hungary, Pannonia Bio (parent company to Aztalan Bio LLC in southern Wisconsin) worked with Energy Integration Inc. cofounder Bill Schafer to design and install a similar system that relied on mechanical vapor recompression technology. EII was able to reduce total energy requirements at two adjacent ethanol plants. One of the plants (an ICM design) was able to cut energy usage by 47%. The other plant dropped its total energy requirements by 32% due to the use of EII’s unique industrial heat pump
INTRODUCING
PHOTO: WESTERN NEW YORK ENERGY
systems that follow the same strategic engineering ideology as Skyven’s.
Tim Winters, CEO of WNYE, says the heat pump installation showcases the ethanol plant’s commitment to innovation. “By integrating Skyven’s cutting-edge Arcturus technology,” Winters says, “we are taking signifi-
cant strides in improving our community’s air quality by reducing our carbon footprint and improving our operational efficiencies.” Winters added that the project also exemplifies WNYE’s commitment to “sustainable practices and industry leadership.”
FROM DAIRY TO ETHANOL: Skyven Technologies first deployed its steam-generating heat pump system and funding model in the California dairy industry.
PHOTO: SKYVEN TECHNOLOGIES
ARCTURUS: Western New York Energy has partnered with Skyven Technologies to install a first-of-its-kind industrial steam-generating heat pump system.
Working with Skyven
For WNYE, the process of working with Skyven was highly collaborative, Barnhill says. The team in New York was excited about several aspects of the project including the lack of downtime for installation, the use of proven technology and the chance to set a precedent for ethanol plants in the U.S. Finally, Barnhill explains, “WYNE is excited about the potential for deep decarbonization, rather than incremental progress on smaller energy savings projects.”
The Arcturus setup will cut emissions at the plant by roughly 20,000 metric tons annually. The WNYE system works as follows: First, low-grade heat is sourced from a commonly available onsite heat source (the plant’s thermal oxidizer exhaust) at temperatures between 160 to 180 degrees Fahrenheit. Then, that heat is transferred to water via a heat exchanger. Following that, the water is flashed under vacuum to produce vacuumpressure steam, which is compressed up to the pressure and temperature of WYNE’s steam header using a multi-stage train of mechanical vapor recompression compressors. The whole system operates as an external retrofit and only integrates with the plant’s steam header and thermal oxidizer exhaust.
To understand how the system helps plants save money while reducing CO2 emissions, one has to understand COP (coefficient of performance) metrics. Despite fluctuations in natural gas prices, Skyven’s systems maintain cost competitiveness through superior efficiency. The COP of Arcturus significantly outperforms traditional natural gas boilers, Barnhill says.
For example, he offers, natural gas boilers have COPs of roughly 0.83. Arcturus, however, has a COP range of 2.1 to 8-plus. When the Arcturus COP is 2.7, that means natural gas boilers will require almost three and a half times more natural gas (on an energy equivalent basis) than the Skyven system’s electricity requirements for producing the same amount of steam. And electric boilers aren’t a better alternative to Arcturus
either, according to Barnhill. Electric boilers have COPs of 0.99, which means they require 2.8 times more electricity than Arcturus to generate the same amount of steam.
The way Skyven handles project funding is almost as collaborative as the system design and install itself. To get started with Skyven, an industrial client would talk with the company’s engineering team to see how the options provided by Arcturus will match existing infrastructure. Then, Skyven deploys its software—called Galileo—a decarbonization modeling tool that rapidly scopes a project and completes conceptual engineering. The process takes only hours, Barnhill says, instead of months of onsite consultation.
Galileo is another unique technology Skyven’s management team believes adds value to its project evaluation process.
If the partnership continues from that point, Skyven develops a thermal energy services agreement that outlines the scope of services and expectations. Skyven then moves forward at its own cost to create a detailed engineering design. Following that, both parties review financials with an understanding that Skyven will handle project management at its own expense, including procurement, installation and commissioning.
Once the system is up and running, Skyven provides ongoing maintenance and
monitoring for the duration of the contract. Part of that process involves relying on realtime IoT monitoring sensors that provide databacked carbon reporting and financial metrics on the plant’s operation and equipment. Through their EaaS model, the success of a project hinges on how well the tech works. Skyven only makes money if its producer client is saving on emissions and reducing operating costs associated with energy consumption.
BUILDING BLOCKS: The Arcturus system is delivered and assembled on skids and then commissioned in roughly four months.
PHOTO: SKYVEN TECHNOLOGIES
AWARD-WINNING: The U.S. Department of Energy has recognized and awarded Skyven Technologies for its capex-covering funding model.
PHOTO: SKYVEN TECHNOLOGIES
“We take performance measurement very seriously and provide various dashboards and reporting to monitor the success of the project,” Barnhill says.
The Skyven Standard
A project between California Dairies Inc. and Skyven helps to illustrate how the funding and ongoing project management setup works. For the heat-recovery project, direct funding for six dairy facilities came from a combination of Skyven, a thirdparty financing firm and a California Energy Commission Food Production Investment Program grant.
Darrin Monteiro, CDI vice president of sustainability and member relations, says Skyven was a fantastic partner, and that CDI didn’t incur any capex during the project install. And, when the project was complete, CDI’s opex decreased.
Under that EaaS model, the cleanemission heat was verified and delivered by Skyven’s IoT monitoring system. The production facility was able to pay lower heat prices due to reduced natural gas volume needs. The savings created by the system were then shared by the producer, the thirdparty financiers and Skyven for the life of the contract.
According to Arnaud Susplugas, CEO of Kyotherm, the third-party financing team
involved on the dairy project, “Skyven’s energy-as-a-service model has removed a major financial barrier to industrial decarbonization projects.”
The WNYE project was the first major deployment of Skyven’s technology package outside of its work with CDI. Arun Gupta, CEO of Skyven, says the ethanol plant project is “groundbreaking” and should “set a new standard,” across the industry.
Gupta started Skyven out of Texas after working with Texas Instruments’ Digital Light Processing Business. After he began touring industrial facilities, he learned about the amount of waste heat incurred on a daily basis. He began building Skyven into an affordable solutions provider.
“Skyven is out to prove that through clean process heat, our customers can achieve a competitive advantage and do good for their communities,” Gupta says, “without breaking the bank.”
Author: Luke Geiver writer@bbiinternational.com
TECH SPECS: The Skyven Arcturus leverages high efficiencies to outperform traditional boilers while eliminating 57% of facility-level emissions.
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Expand with the latest plant design, not 20 year old technology. For a similar CAPEX, you can have the latest technology with lower operating costs. Call Fluid Quip Technologies to put our proven expertise to work at your facility.
STRENGTH Through DIVERSIFICATION
Chief Ethanol is celebrating 40 years of operation in south-central Nebraska—a milestone made possible by its parent company’s seven-decades-long strategy of enterprise breadth.
By Luke Geiver
Chief Industries is a Nebraska-based corporation with seven global brands, one of which is in ethanol. In 1990, Chief acquired the state’s first dry mill ethanol plant, which had been operating since 1985 near Hastings, Nebraska. In 2016, Chief added a second plant, 86 miles away, near Lexington. Combined, the two Chief Ethanol facilities produce more than 120 MMgy of ethanol along with wet and dry distillers grains, corn oil and syrup.
In the coming year, Chief Ethanol’s Hastings facility will celebrate 40 years of production and, according to Wayne Garrett, general
manager of Chief Ethanol, “it’s something to really be proud of.” The 40-year milestone comes at a time that Garrett describes as a renaissance in ethanol production—an era of innovation and new technologies making it possible for producers to lower their carbon intensity (CI) scores for environmental and financial reward, including opportunities in sustainable aviation fuel. And because of it, he says, today’s ethanol industry is stronger and better positioned than ever. It may not be the type of growth experienced in the construction boom of the mid-2000s, he explains, but it’s every bit as exciting.
Chief Ethanol’s current place within the broader company is strong, Garrett adds, in large part because of its management and personnel, who run the company within the guideposts that its founders established from day one—a strategy of diversification. While Chief Industries’ ethanol business turns 40 in 2025, its broader business just hit 70, having formed in 1954.
Chief Ethanol is a unique biofuels company, especially when compared to standalone ethanol producers, because of its parent company’s business diversity. Both Garrett and Beth Frerichs, director of marketing and
CELEBRATING 70 AND 40: In 2025, Chief Ethanol will celebrate 40 years of ethanol production in Nebraska. Its parent company, Chief Industries, celebrated its 70th anniversary throughout 2024. Today, Chief Industries operates seven different businesses, ranging from ethanol production and grain storage to shipping and manufactured home construction.
communications at Chief Industries, say the ethanol affiliate’s story highlights a common theme producers of all types might consider. Diverse companies like Chief Industries tend to have company cultures geared toward problem-solving. Naturally, the more a company does—the more compartments it has—the more challenges it will encounter. That reach, however, also creates a plethora of solutions-oriented growth opportunities.
Chief Ethanol Today
Chief Industries was founded in the ’50s as a construction company out of Grand Island. Today, it is still a stakeholder-driven,
family-owned firm that doesn’t have to answer to shareholders or outside investors. Virgil Eihusen started the company, and D.J. Eihusen (Virgil’s grandson) has continued on as the current CEO after working his way up from his early days as a manufacturing manager. Chief’s mission has always been simple and effective, even if its business endeavors have changed: Give the customer unparalleled attention while treating everyone with dignity and respect. Add to that the company’s commitment to be not the biggest, but the best at whatever it does, and Garrett says the ingredients for success are accounted for.
After four decades of operation, the Hastings plant is frequently in need of improvement, maintenance and upkeep to ensure the mechanical integrity of the plant. The 40-year celebration is a good reminder of the work and attention older ethanol plants require, Garrett says. He didn’t get into specifics about what either of the plants are focused on currently, but a wry smile suggested they were busy.
In 2021, Chief Industries entered into an agreement with Catahoula Resources to jointly develop carbon capture and sequestration (CCS) projects at both Chief Ethanol plants. Catahoula, which operates a pipeline
PHOTOS: CHIEF ETHANOL
that spans across southern Nebraska near the two ethanol plants, has been a great partner on the project, according to Chief.
Dirt work for both plants was expected to start in late 2024, with operation by the end of 2025. The CCS project will ultimately capture and permanently store 350,000 metric tons of CO2 annually from the plants. Depending on the modeling used to calculate CI score reduction, Garrett believes Chief Ethanol will lower its CI score by roughly 30 points.
Introducing CCS will change the standard operations of the plants, he says. Compression stations will be added, and more maintenance will be required.
In the past two years, the ethanol team under Garrett has analyzed more than 20 CIreduction technologies or strategies for its two plants, from electrical savings to hydrogen, RNG and more. Although they are currently focused principally on getting the CCS project with Catahoula up and running, Garrett says they aren’t done looking.
Chief’s management team believes the ethanol industry is somewhat oversupplied, and they also believe markets need to grow at the state, national and international levels. Since Garrett took the general manager role at Chief Ethanol, the company has become an active member of the Renewable Fuels Association, in addition to working with the American Coalition for Ethanol.
Certain plants will end up having an advantage over others during the next few years, Garrett believes. It all comes down to that CI score, he says. The demand for ethanol may not necessarily change, but the supply volumes provided by certain producers may rise or fall as they develop the capability to offer ethanol with CI scores that are lower than competing plants.
CI reduction at the plant isn’t the only focus of Garrett and his team. With local farmers that supply both Chief facilities with corn, and, through work done in conjunction with ACE, Chief is helping promote and make possible climate-smart farming practices. They are still waiting for the rules to become
clear, Garrett says, but they are ready and waiting to engage.
Tapping Into Diversity
To continue the success of Chief Ethanol and its parent company, Frerichs is quick to call out the resources the company has inhouse. There are many. At one time, Chief Industries operated more than 15 different brand segments in various industries. Today, the company is focused on seven.
“We now focus on the most efficient brands,” she says, outlining grain handling, equipment fabrication and building fabrication to shipping, construction and manufactured home building.
So how does Chief Ethanol benefit from its parent company’s other brands? For Frerichs, it’s all about the power of human capital. “You get more idea generation and human creative problem-solving from having so many brands,” she says. “We can take what we learn from one division and apply it to another.”
And the greater Chief team regularly does that. They talk about lessons learned and strategies tried—that either worked or didn’t—and experiences they have had in their own indi-
vidual sectors that others might learn from. Just recently, Garrett and the directors of the other divisions attended a retreat to talk shop and share best practices.
It helps that all the business units operate under the same mission. And, as Frerichs and Garrett explain, there are built-in, longterm trusted relationships with customers that sometimes span multiple industries. “We have generational customers,” she says.
They also have generational talent working at Chief. At the Hastings plant, the 40-year anniversary will also mirror the work anniversary of the plant’s first employee. In fact, several of the leaders of the company rose up through the different business units at Chief. And it isn’t just about the human knowhow and commitment of their internal team. Others find the values of Chief alluring. Frerichs notes that many influencers from YouTube or other social media platforms want to partner with Chief, even though the company is 70 years old. These online personalities include people like Laura Wilson from Laura Farms, a popular YouTuber who documents her time spent farming corn and soybeans in Nebraska.
FROM A TO B: With its transport business unit, Chief Industries is able to serve the ag sector and more with a comprehensive logistics package. PHOTO: CHIEF INDUSTRIES
At Husker Harvest Days, a national expo held every year in Nebraska, Chief’s tradeshow set-up—the “All-American Farm”—is always among the most popular. It’s built to show ag producers what Chief can do for farmers of future generations.
“There is constant change in every one of our divisions,” Frerich says. “We are always focused on what is best for the team and what is best for growth. That is why we are so stable—we have diversification.”
Author: Luke Geiver writer@bbiinternational.com
Chief is always looking to the future. In the housing sector, Chief’s BonnaVilla brand is working on unique arrangements with construction companies to help get homes built faster. In the manufacturing space, Frerich and her team are always finding new ways to add more human bandwidth. They also look to robotics for additional welding capacity. Following its mission of being the best, Chief is always taking on more innovative solutions.
CARBON CAPTURE CAPABLE: Work with Catahoula Resources on the build-out of a CCS project connected to both Chief Ethanol facilities was expected to get underway in 2024.
PHOTO: CATAHOULA RESOURCES
CREATIVE WELDS: To meet the demand of its fabrication customers, Chief’s team deploys human and robotic welders.
PHOTO: CHIEF INDUSTRIES
DECODING DECARBONIZATION
EcoEngineers hosted two webinars in October on reducing ethanol plant emissions. Ultimately, getting into the high-value, low-CI ethanol market is now as much about climate-smart farming as energy-efficient production.
By Katie Schroeder
With myriad technologies and decarbonization strategies to explore, and a growing list of compliance and carbon credit markets to access, ethanol producers have many decisions in front of them. The various lifecycle carbon analysis models, as well as each plant’s unique characteristics, present producers with a significant challenge in choosing the right technology or strategy to leverage their plant’s individual qualities, reduce their carbon intensity (CI) and maximize their profit margin.
In October, EcoEngineers held a webinar series outlining the pros and cons of pursuing various decarbonization strategies,
presenting ethanol producers with data and principles to help them reduce greenhouse gas (GHG) emissions and improve their CI scores. In the first webinar, titled “Ethanol Scope 1&2: Decarbonizing Production,”
Jim Ramm, vice president of U.S. biofuels and cofounder of EcoEngineers, and Chelsa Oren, account manager for RNG and U.S. biofuels, explained the challenges and opportunities found in a variety of carbon credit options available to ethanol producers. The second webinar, “Ethanol Scope 3: Decarbonizing Feedstock,” featured Ramm and Juan Vargas Ramirez, a biosystems engineer and account manager for U.S. biofuels with EcoEngineers.
The U.S. Environmental Protection Agency defines Scope 1 GHG emissions as
those that come from “sources controlled or owned by an organization.” This includes fuel combustion from boilers, vehicles and furnaces. Scope 2 emissions are indirect, coming from the “purchase of electricity, steam, heat or cooling.” Scope 3 emissions are emitted by entities within an industry’s value chain. For the ethanol industry, these emissions come from growing corn, including the CI from parts of the process such as fertilizer, indirect land use change, transportation and more.
Markets and Economics
Producers need to be aware of their options and decide which combination of compliance, carbon credits or tax incentives best fits their plant. Not all the programs
are stackable, explained Ramm. For example, the Inflation Reduction Act tax credits, including 45Z and 45Q, cannot be leveraged simultaneously, and if a producer is selling into Canada under the nation’s Clean Fuel Regulation, they will not generate U.S.-linked renewable identification numbers (RINs). A plant’s location may determine which compliance or carbon credit
opportunity its management team seeks out, depending on the producer’s ability to access certain markets, such as California or Canada.
Carbon capture and storage (CCS) and carbon capture and utilization (CCU) both have great tax incentives available through the 45Q tax credit, and producers have pursued these options by exploring pipelines and execut-
and Account Manager EcoEngineers
ing on-site projects. Oren explained that two of the IRA tax credits that producers will need to choose between are the lifecycle-analysis dependent 45Z and 45Q for CCS and CCU. Also, the specific guidance around implementing 45Z is still unknown. U.S. Department of Agriculture Secretary Tom Vilsack has said that the guidance will come out by January
Chelsa Oren Account Manager EcoEngineers
Jim Ramm Vice President and Cofounder EcoEngineers
Juan Vargas Ramirez Biosystems Engineer
2025, almost simultaneously with the statute taking effect. The 45Q tax credit has a 12year window, while 45Z has a much shorter three-year window. However, 45Z offers higher potential returns than 45Q, according to Oren.
California has an established carbon credit market, but the timeline associated with adding any unique inputs into the application, such as CCS, increases the amount of time needed for approval. Oren also discussed the length of the timelines associated with qualifying a plant under a Tier 1 or Tier 2 pathway under the California Low Carbon Fuel Standard and the potential for CCS under the LCFS. The California Air Resources Board handles applications for the LCFS program. The timeline for getting approved for a Tier 1 application is typically eight to 12 months, while the Tier 2 application approval timeline is generally lengthier and more uncertain. “It could be 28 months [or] 36, but what you can do—if you’re a producer waiting for an LCFS pathway application to be approved—is look toward the voluntary market where you can get approved quicker than the LCFS market,” Oren said.
Tier 2 applications are needed for any process that is not a conventional, first-gen starch-to-ethanol setup, thus making CCS a Tier 2 application. Because of the shorter process, plants could generate credits on the voluntary market—at least one already is— while they wait for an answer from CARB. The number of registries available to ethanol producers that possess a CCS protocol is growing to now include the American Carbon Registry, Puro.earth, Verra, Isometric and Gold Standard.
“I know LCFS credit prices [for sequestered CO2] are around $50 [per metric ton] right now, but they won’t be forever,” Oren said. “If you are planning a CCS project, it’s going to be [running] for 10 to 20 years, and we expect prices to fluctuate and go up in that time.” Credit values on the voluntary market are also expected to fluctuate, but
according to EcoEngineers’ estimations, an ethanol plant doing CCS could receive more from the voluntary market than compliance markets when shipping and blending costs are factored in.
Technology Choices
As producers await 45Z guidance, Oren recommends establishing a baseline CI score under Argonne’s GREET model to assess the plant’s current Scope 1 and 2 emissions and strategize how to reduce that score.
Determining which aspects to target for reduction is often site-specific, with implementation dependent on each plant’s location and process, Ramm explained. These technologies include CCS, biomass-based heat, renewable electricity and low-CI farm practices. However, some universal technologies could be implemented at any ethanol plant, including corn kernel fiber (CKF) ethanol production, membrane dehydration, combined heat and power and CCU.
Any plant looking to use renewable energy such as wind, solar or renewable
natural gas, must ensure that those energy sources are tied into the plant behind the meter. An assessment of the local energy source’s current CI is vital to help producers understand if the reduction from installing a specific alternative energy source is worth the investment.
Another caveat for producers to consider is that the production of RNG from a coproduct stream such as thin stillage, does not always translate into a lower CI. “It’s important to understand that you will lose some coproduct credit value in your CI score in California,” Oren said. “Your coproduct credit that you currently would receive is anywhere between 8 and 13 CI points. So, if you’re using biogas as process energy, yes, it’s renewable and you can lower your CI, but in theory, you may be losing your coproduct credit value. It’s important to do a CI check because I’ve seen ethanol plants improve their CI scores, [and others that have not]. Their CI score may stay the same or their CI score may become less favorable when producing biogas utilizing coproduct at the ethanol plant.” She also rec-
CASHING IN ON CCS: Ethanol plants able to capture and sequester their CO2, like Blue Flint Ethanol in North Dakota, qualify for lucrative tax incentives while also producing low-CI ethanol that can potentially generate greater revenue in LCFS markets.
PHOTO: EPM
ommends that producers check their RFS pathway when integrating RNG production into their process, making sure that existing pathways are not impacted.
Although CCS has the largest potential benefit to CI reduction, getting approval under California’s LCFS program is a time-consuming endeavor, and no producer has yet been approved. Carbon capture is new to CARB, Oren said. “The CCS protocol that you need to submit [is extensive], and they have to review a lot of stuff in that document and, you know, they’re coming back with questions ... and it just takes a while.”
Producers typically face organizational challenges when implementing their chosen decarbonization strategy. Ramm explained that as ethanol producers become “the project developer,” they enter a cycle of development: studying a project, advancing it through financing, design, construction, startup, operation and compliance—often followed by improving and transforming the project in subsequent years. “And as we move through those layers, there are ... different key people on your team; you’re going to go from finance people and managers and decision-makers to engineering and design and construction [partners],” Ramm said. “And then you’re going to shift gears into operating staff, and you’re going to shift gears into accounting and compliance staff, and then you’re going to start the whole cycle over.”
Feedstock and Fiber
Climate-smart agriculture (CSA) is now a top-tier strategy to reduce ethanol’s Scope 3 emissions. With the emissions associated with farm practices constituting roughly 28 CI points of ethanol’s total score, finding ways to reduce that number makes an impact. However, the 40B guidance released in 2024 was a mixed bag for many in the industry, as it simultaneously recognized CSA as a valid decarbonization strategy while placing a lower value
on low-carbon and regenerative farming practices than the Argonne GREET model—and bundling practices together. The practices that could reduce corn’s CI include applying low-carbon fertilizers, planting cover crops, implementing notill or strip-till, controlling nutrient runoff and more. “There’s multiple levers [of CSA] that can be used to alter the yield and the CI of the crop, and effectiveness depends on location, climate, soil type and the crops grown,” Ramm said. “The combination of these practices really needs to be unique to the farm, and unique to the farmer, and unique to what they’re ready to do year by year; so there are certain latitudes of the country where cover crops make sense, but as we go north, make less sense.”
As producers anticipate the longawaited guidance for 45Z, Ramm shared EcoEngineers’ recommendation for a system that would pay the farmer and allow the ethanol producer to take advantage of the CI reduction associated with CSA. The firm recommends a “book-and-claim” system in which the physical corn and the credits are separated from each other.
“By ‘book-and-claim,’ I mean that a farmer with 600 acres of cover crops, strip-till, feeder cattle and manure in eastern Iowa can take that corn commodity to the local elevator and separate and sell the CSA—environmental attributes—to a renewable fuel producer in South Dakota that can use them,” Ramm said. “That will allow for broad adoption of many CSA practices. It will help to maximize on-farm revenue, which is something that’s really needed. There’s a farm economy that has been suffering for some time—that’s readily apparent in watching the number of farms reduce year over year. This will minimize commodity transport and simplify requirements for monitoring, reporting and verification.”
This system would work with the involvement of a data aggregator that col-
Our team of experts have over 20 years of ethanol plant maintenance expertise. We o er full service and parts for all Fluid Quip equipment to ensure peak performance.
lects data from satellites, machines and farmers for verification. Ramm recommends that the aggregator should be the credit generator, minimizing the number of regulated parties and optimizing the use of machine learning and AI.
Leaning on his background as a biosystems engineer, Vargas Ramirez explained how corn kernel fiber ethanol is produced alongside corn starch ethanol—via specialized enzymes that target the typically unused fiber portion of the kernel. A recent ASTM standardization for analytical methodology that verifies the amount of cellulosic ethanol produced through in situ corn fiber ethanol processes has made this option more viable for producers. Vargas Ramirez outlined the benefits of implementing corn fiber ethanol production and discussed the timeline associated with getting the pathway approved for D3 RIN generation. “Fiber represents about 9% of the dry weight of a corn kernel, and this fiber typically passes through the process without being converted, ending up in the feed as a low-value component,” he said. “The opportunity here is to convert that low-value fiber component into high-value cellulosic ethanol, and in doing so, this could lead to additional benefits such as increases in corn oil recovery, protein content and overall plant efficiency.”
These analytical methods can be used to qualify 0.3% to 1% of a producer’s total production for D3 RIN generation. The EPA projects that 77 million gallons of cellulosic ethanol will be produced using this method from 2023 through 2025. The converted fraction must be recertified each year, or with every 500,000 gallons of cellulosic ethanol produced, whichever is more frequent, according to Vargas Ramirez.
Guidance on 45Z is also needed to bring clarity on how ethanol credits will be allocated. “Will credits be allocated to the overall ethanol production at a facility? Could they be allocated to the fiber ethanol portion, separate from the starch ethanol? We don’t know, but what’s certain is that corn kernel fiber ethanol will have a contribution to your overall CI score reduction,” he said.
Although there is no one-size-fits-all solution to decarbonization, ethanol producers have an opportunity to work with farmers, identify solutions that will uniquely benefit their facility, and choose the compliance, carbon and tax credit markets that will help them maximize profit margins while developing an even more sustainable fuel.
Christianson PLLP shares updates on New Mexico’s work to establish and implement its Clean Transportation Fuel Standard.
By Kari Buttenhoff and Danielle Anderson
New Mexico is making significant strides toward implementing its recently passed legislation adopting a Clean Transportation Fuel Standard (CTFS), modeled after the clean fuel standards in California, Oregon and Washington, and designed to annually reduce the carbon intensity of transportation fuels.
New Mexico Joins the Ranks of State-Led Clean Fuel Programs
By advancing its Clean Transportation Fuel Standard, New Mexico is joining a growing list of states that have adopted state-specific clean fuel programs, creating new markets and opportunities for biofuels and other low-carbon fuels.
California was the first state to launch a Low Carbon Fuel Standard (LCFS) in 2009, setting a precedent that has greatly benefited the biofuels industry. Oregon followed with its Clean Fuels Program in 2016, and Washington implemented its Clean Fuel Standard in 2023. These programs have driven demand for biofuels, creating opportunities for producers.
New Mexico's CTFS aims to build on past successes by creating a robust biofuels market within the state, while adhering to legislative goals of maintaining a technology-neutral fuel standard. The program targets a 20% reduction in the carbon intensity of transportation fuels by 2030 and a 30% reduction by 2040, compared to the state's 2018 baseline.
As the state moves through the rulemaking process, key stakeholders are playing an essential role in shaping the program's development.
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
The Rulemaking Process and Advisory Committee
The New Mexico Environmental Improvement Board (EIB) is leading the charge in the rulemaking process for the CTFS. A key mandate of the Board is to promulgate rules for the standard's implementation by July 1, 2026. To help ensure the program is comprehensive and balanced, the Environment Secretary convened a CTFS Advisory Committee to provide technical input on the rules that will govern the state's program.
The New Mexico Environment Department (NMED) sought Advisory Committee members from a broad spectrum of stakeholders, including third-party verification bodies, transportation fuel producers and distributors, utilities, environmental protection groups, environmental justice groups, tribal and local government representatives, as well as other experts. This diverse group provided the initial technical expertise necessary to help guide the CTFS' development.
The 31-member Advisory Committee participated in a series of meetings this summer to explore critical aspects of the CTFS, with presentations from various industry and policy professionals that shaped the ongoing discussions.
Key Insights from Advisory Committee Presentations
• Michael Ford from the NMED Climate Change Bureau presented an overview of the current transportation fuels used in New Mexico, along with fuel lifecycle analysis and credit generation opportunities under the CTFS.
• Cory-Ann Wind of Clean Fuels Alliance America gave an overview of biodiesel and renewable diesel and presented credit-generating statistics from other states’ LCFS programs.
• Valero & Rio Valley Biofuels provided insights into New Mexico’s transportation fuel supply chains, discussing regulated fuels and offering a historical perspective from the state’s first biodiesel producer.
• Graham Noyes of Noyes Law Corporation addressed the potential crediting of alternative jet fuel (AJF) and off-road fuel crediting opportunities, emphasizing the need for scalable Sustainable Aviation Fuel (SAF) production. He also recommended that New Mexico consider including jet fuel under the CTFS to avoid the disincentives seen in California’s opt-in model for SAF credits.
• Evan Rosenberg of SRECTrade outlined the role of EV charging under clean fuel standards, focusing on how electric vehicle infrastructure can generate credits.
• Gabriel Pacyniak from the UNM School of Law discussed environmental justice concerns, highlighting the risks of increased NOx emissions from biofuels and how some credited mechanisms might worsen upstream pollution. He also warned that the benefits of electrification could be skewed toward affluent consumers unless measures are taken to ensure equitable access to electric vehicles (EVs).
• Travis Madsen of SWEEP (Southwest Energy Efficiency Project) stressed the importance of ensuring that credits are real, additional, verifiable and permanent under the program, and suggested a cap on biofuels.
• Sam Wade from the Coalition for Renewable Natural Gas discussed the role of renewable natural gas (RNG) in New Mexico’s CTFS, offering perspectives on its potential to contribute to the program’s carbon reduction goals.
• Matthew Weyer from Taos Ski Valley detailed the resort’s efforts to become net-zero by 2030, sharing their experience in testing Renewable Diesel-99 (RD-99) fuel in partnership with Marathon Petroleum and its efforts to procure more renewable diesel.
These presentations offered the committee a comprehensive look at the technical, environmental and market aspects of clean fuel standards, providing the foundation for subsequent discussions.
Advisory Committee Members were also given the opportunity to provide oral and written technical input. This input was compiled and makes up New Mexico’s official Clean Transportation Fuel Standard Advisory Committee Technical Report. This report is not a consensus document, but rather a collection of the varied technical opinions presented by the committee members.
NMED provided 11 prompts to the Advisory Committee to solicit written input.
• What do you see as best practices that the NMED should consider for the first years of New Mexico’s CTFS program?
• How can NMED make it as easy as possible to generate clean fuel credits within New Mexico’s CTFS program while ensuring that clean fuel credits represent real reductions in carbon intensity?
• How might NMED design a CTFS program to benefit New Mexican communities, especially those who live in low-income and disadvantaged communities?
• What information about New Mexico fuel markets does NMED need to know in analyzing New Mexico CTFS program options?
• How will New Mexico’s CTFS program need to regulate deficitgenerating fuels in New Mexico differently than the processes in West Coast states?
• What might NMED incorporate in the CTFS program to attract businesses and supply chains to New Mexico? NMED is interested in learning more about specific credit-generating fuels (e.g. renewable diesel, biodiesel, electricity, hydrogen, etc.)?
• Presuming that the NMED CTFS program will likely use lookup tables for the CI value of regulated and some opt-in fuels, what might NMED consider in determining the well-to-wheel CI values that are used for this approach?
• What does New Mexico’s CTFS program need to calculate CI for grid and renewable power, and the volumes of it used for transportation? What are the best sources of available data?
• What might New Mexico’s CTFS program take into consideration in deciding whether to use an annual statewide versus utility-specific CI for electric grid power?
• How might NMED design the CTFS program’s deferral mechanism?
• What does NMED need to consider when defining “emergency or forecasted conditions?”
These prompts, along with the presentations, provided input for shaping a CTFS that aims to balance economic growth, environmental protection and equitable treatment of low-carbon fuels.
RENEWABLE PERCENTAGE: The graph above illustrates the state’s fuel consumption trends over the past decade, underscoring the opportunity for biofuels to play a key role in reducing carbon emissions within the transportation sector.
SOURCE: NMED, SOURCED FROM THE U.S. ENERGY INFORMATION ADMINISTRATION, STATE ENERGY DATA SYSTEM: NEW MEXICO. HTTPS://WWW.EIA.GOV/BETA/STATES/STATES/NM/DATA/DASHBOARD. NOTE: ALL FUEL TYPES LARGELY USED FOR TRANSPORTATION, BUT DATA IS FOR TOTAL OVERALL CONSUMPTION. NEW MEXICO HAS NO DIESEL-FIRED POWER GENERATION. NOTE: ELECTRICITY NOT INCLUDED BECAUSE THERE IS NO DATA ON VOLUMES CONSUMED FOR TRANSPORTATION AT THE STATE LEVEL. RENEWABLE DIESEL VOLUMES ARE ZERO. *ETHANOL AND BIODIESEL VOLUMES ARE SUBTRACTED FROM FINISHED MOTOR GASOLINE AND DIESEL VOLUMES AND LISTED SEPARATELY.
The perspectives captured in this technical report offer a robust foundation for NMED as it begins the formal rulemaking process, ensuring that the CTFS is informed by a wide array of technical expertise and viewpoints.
Feedstock Caps and Certification Challenges
As New Mexico moves forward with its CTFS, biofuel proponents must remain vigilant about potential regulatory challenges. The biofuels industry is already encountering issues in other states, such as California, where efforts to impose caps on biomass-based feedstocks and implement burdensome sustainability certification requirements could disrupt market growth. While often driven by concerns over land use and sustainability that seemingly lack scientific backing, these measures can lead to unintended and counterproductive consequences.
Feedstock caps, in particular, can place limits on the amount of certain materials—especially crop-based feedstocks like corn and soy— that can be used in biofuel production. While intended to prevent overreliance on specific crops, these restrictions can stifle innovation and limit the ability of biofuel producers to expand. Additionally, burdensome certification requirements, if not scientifically grounded, could disproportionately affect crop-based feedstocks and create unnecessary barriers for producers.
New Mexico’s CTFS legislation explicitly mandates technology neutrality, and it is critical that the final program reflects this principle. Maintaining an open and flexible approach to all types of low-carbon fuels—whether crop-based biofuels, waste-derived fuels or renewable electricity—is key to ensuring that the CTFS encourages innovation, maximizes emissions reductions, and supports a diverse and resilient energy market.
Looking Ahead
As the rulemaking process progresses, the EIB is working to craft a program that maximizes economic benefits while ensuring environmental responsibility. The Board's deadline to promulgate the necessary rules by July 1, 2026, adds a sense of urgency to these efforts. The detailed report provided by the Advisory Committee, reflecting the technical input and diverse perspectives gathered throughout the process, will be a critical resource for NMED as it moves forward.
However, biofuel proponents must continue to push back against any potential regulatory barriers, such as feedstock caps or onerous certification requirements, that could stifle the industry’s growth. By ensuring the CTFS remains technology-neutral and supportive of a broad range of low-carbon fuel technologies, New Mexico is well-positioned to emerge as a leader in the biofuels sector.
New Mexico's Clean Transportation Fuel Standard is set to create fertile ground for the expansion of the biofuels industry. The ongoing rulemaking process, supported by a comprehensive advisory process and a deadline of July 1, 2026, is crucial to ensuring that this program is designed to support economic growth while contributing to the state's broader energy goals. As New Mexico integrates into the network of state-led clean fuel programs, it is opening the door to new opportunities for biofuels and reinforcing its commitment to a prosperous future.
Authors: Kari Buttenhoff, Partner at Christianson PLLP kbuttenhoff@christiansoncpa.com
Danielle Anderson, Senior Advocacy and Policy Manager
at Christianson PLLP danderson@christiansoncpa.com
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