The company is encouraged by the positive outlook for the production and distribution of renewable advanced bio-fuels. The domestic production of ethanol has played a key role in decreasing dependence on foreign oil.
In the United States, Federal Law required the use of oxygenates in reformulated gasoline to reduce vehicle emissions in cities with unhealthy levels of air pollution. These oxygenates included MTBE in the past. However, the use of MTBE is no longer permitted, making ethanol the primary clean air oxygenates used.
Ethanol has an octane value of 113 and is the primary additive used by refiners to increase octane levels, producing regular grade gasoline from lower octane blend stocks and upgrading regular gasoline to premium grades, to improve engine performance. Refiners are producing more conventional blend stocks for oxygenate blending, or CBOB, which is an 84 octane sub-grade gasoline that requires ethanol or another octane source to meet the minimum octane requirements for the U.S. gasoline market. CBOB represented approximately 80% of total conventional gasoline sold in 2015.
Ethanol is a valuable blend component used by U.S. refiners to extend fuel supply. According to the EIA, ethanol comprised approximately 9.9% of the domestic gasoline supply, replacing nearly 750 million barrels of crude oil in 2016.
In October 2010, the EPA granted a waiver that permitted the use of E15 in model year 2001 and newer passenger vehicles, including cars, sport utility vehicles and light pickup trucks. In June 2012, the EPA approved the sale and use of E15 and in July 2012, the nation’s first retail E15 was sold. On January 2017, there were 627 retail fuel stations in 28 states offering E15 to consumers.
Our federal government mandates the use of renewable fuels under RFS II, which has been a driving factor in the growth of domestic ethanol usage. The EPA assigns individual refiners, blenders and importers the volume of renewable fuels they are obligated to use based on their percentage of total fuel sales. In November 2016, the EPA announced the final 2017 renewable volume obligations for conventional ethanol of 15.0 billion gallons.
Prior to 2010, the United States had a long history as a net importer of ethanol. In 2010, according to the USDA, the United States became the largest exporter of ethanol to world markets and lowest-cost producer, surpassing Brazil. According to the EIA, U.S. ethanol exports, net of imports, were approximately 1.0 billion gallons in 2016 and 730 million gallons in 2015.
Demand for cleaner, more sustainable transportation fuel has made ethanol a crucial component of the global fuel supply as an economical oxygenate and source of octanes.
According to the Global Renewable Fuels Alliance, 35 countries, including the EU which is regulated by a single policy with specific national targets for each country, have mandates or planned targets in place for blending ethanol and biodiesel with transportation fuels to reduce harmful emissions.
In January 2017, the USDA released a report providing evidence that greenhouse gas emissions associated with corn based ethanol are 43% lower than gasoline. Numerous factors have led to improvements over the past ten years, including conservation practices by farmers, higher corn yields and advances in production technologies, which are expected to continue and has the potential to further reduce greenhouse gas emissions up to a 76% as compared with gasoline.
Based on the forecasted market opportunity, the company is deploying new technologies for the production of advanced ethanol bio-fuels utilizing different feed-stocks depending on the location of the processing plant.
benchmark second generation advanced bio-fuel corn to ethanol plant, includes several competitive advantages including:
- Lower cost of operation per gallon produced.
- Low Carbon Footprint (low GHG).
- Self-production of renewable energy utilizing bio-gas and bio-mass.
- Cost effective cellulosic pathways that increase yield.
Among the baseline industry parameters that will be implemented in the corn to ethanol new facility are:
- Expected Yield of Ethanol per Bushel of Corn = >3.0 Gallons
- Pounds of DDG produced per Bushel of Corn = 17 lbs. per Bushel
- Pounds of extracted oil per bushel of corn = 1.0 lbs. per Bushel
- BTU of renewable bio-gas per gallon of Ethanol = <18,000 BTU per Gallon
- Kwh of renewable electricity per gallon of Ethanol =.05 Kwh per gallon
For additional information, please contact the company.