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Economists propose RFS ethanol mandate be frozen at 2013 levels

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By Susanne Retka Schill

April 10, 2013

Policy Business Markets 

Two University of Illinois economists are proposing to freeze renewable fuel standard (RFS) mandates in 2014 and 2015 at 2013 levels, arguing it represents a pragmatic way forward.

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The International Energy Agency Bioenergy Task 39 group recently published a report that outlines progress on more than 100 advanced biofuel projects under development worldwide.

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The Biofuels Center of North Carolina recently awarded $684,000 for six projects to accelerate the renewable fuels industry in western North Carolina. Awards were determined through a competitive, peer-reviewed process.

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The public comment period on the U.S. EPA's proposed rule for the 2013 renewable fuel standard (RFS) is now closed. According to the rulemaking's docket folder on Regulations.gov, nearly 50 public comments were submitted on the proposal.

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A United Kingdom company hopes the purchase of Appomattox Bio Energy, a failed U.S. ethanol plant, will be the boost it needs to start construction on a 200 MMly (52 MMgy) ethanol plant in Grimsby, England.

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CME Group is working on the specifications for three contracts to be offered on renewable identification numbers (RINs), including one for ethanol and one for biodiesel. The contracts should be available for trading on the NYMEX by the end of May.

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For ethanol producers with on-site rail spurs, rail safety training could help avoid accidents causing injury, amputations and death as well as serious financial impacts to the company.

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Project development is in the financing stage for a nitrogen fertilizer facility to be co-located with Tharaldson Ethanol Inc., a 153 MMgy facility located in Casselton, N.D. The fertilizer plant would produce urea, anhydrous ammonia and UAN.

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A safety training course for ethanol producers will be held April 10-11 in Brookings, S.D., sponsored by the Engineering Extension Office, College of Engineering, at South Dakota State University. It qualifies as a 10-hour OSHA training course.

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Lee Enterprises Consulting of Little Rock, Ark., the world's largest alternative and renewable fuel consulting group, is pleased to announce the formation of a strategic alliance with ICM Inc. of Colwich, Kan.

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The Renewable Fuels Association has responded to the questions posed by the U.S. House of Representatives' Committee on Energy and Commerce in a white paper entitled, "Examining 'Blend Wall' Challenges."

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In a new FarmDocDaily post University of Illinois professors Scott Irwin and Darrel Good discuss the on-going cost of renewable fuel standard (RFS) compliance and the price of gasoline.

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The USDA has published a notice of funding availability for the Rural Energy for America Program for fiscal year 2013. The program provides financial assistance in the form of grants and guaranteed loans for renewable energy projects.

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Iowa gets new E15 location

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By Iowa Renewable Fuels Association

April 04, 2013

The Iowa Renewable Fuels Association has announced that Iowa's newest station offering E15 as a registered fuel is Popke's Inc. in Rock Rapids. The location is the state's fifth registered E15 retailer.

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In a welcome move for corn buyers, the U.S. corn market dropped dramatically in recent days on news of higher-than-expected corn inventories. The corn market took off nearly $1 a bushel since the March 28 USDA Grain Stocks report.

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The USGC Corn Export Cargo Quality Report indicates that despite the severe drought in 2012 that seriously reduced the size of the U.S. corn crop, testing indicated the 2012 crop was superior to the 2011 crop across a number of key variables.

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Ethanol producers interested in learning more about combined-heat-and-power (CHP) may want to check out an archived U.S. DOE training seminar. The information complements "Feeling the Heat," a story recently published in Ethanol Producer Magazine.

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The U.S. EPA recently published data on renewable identification numbers (RINs) generated under the renewable fuel standard (RFS) during January 2013. Ethanol accounted for nearly 43.66 million D5 advanced biofuel RINs during the month.

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REX American Resources Corp. has released financial results for its fiscal 2012 fourth quarter and the year ended Jan. 31, 2013. The company currently holds ownership interest in seven ethanol plants throughout the Midwest.

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Pacific Ethanol Inc. recently announced that it bumped up its plant ownership to more than 83 percent and released its latest financial results. The company operates and manages three operating ethanol plants and one idle facility.

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An undisclosed number of ZeaChem Inc. employees have been laid off after the company was unable to secure a bridge loan that was intended to carry it into the next funding round. The company is working to secure additional capital investment.

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A Longer-term Perspective Needed

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By Robert Vierhout

April 01, 2013

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In 2005, 2006 and 2009, Ethanol Producer Magazine published the results of salary surveys and this year, we're doing it again.

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Drought and the U.S. EPA have given the underdog crop a big boost.

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Recent developments could spark renewed interest in CHP technology.

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