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Released December 02, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--This week, the U.S. Environmental Protection Agency (EPA) is expected to propose stronger biofuel-blending requirements for oil refiners over the next three years, according to sources interviewed by Reuters. Industrial Info is tracking more than $9 billion worth of active biofuel-refining projects in the U.S. Alternative Fuels Industry.
Click on the image at right for a heat map of active refining projects in the U.S. Alternative Fuels Industry, from Industrial Info's Geolocator tool.
The EPA will call for overall blending mandates of 20.82 billion gallons in 2023, 21.87 billion gallons in 2024, and 22.68 billion gallons in 2025, the sources told Reuters. The EPA's biofuel mandate for 2022 is 20.63 billion gallons, plus 250 million gallons to compensate for volumes that were not blended in previous years. Between 67% and 73% of the requirement for each year will be for conventional biofuels, like corn-based ethanol.
Among the projects under construction to produce high-grade ethanol is Lakeview Energy LLC's (Chicago, Illinois) $50 million overhaul of its ethanol plant in Coshocton, Ohio. The company is performing upgrades and revamping equipment at the now-shuttered, 55 million-gallon-per-year biorefinery to produce USP-grade and fuel-grade ethanol. The project is expected to begin commissioning in January. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can learn more from a detailed project report.
In one of the biggest U.S. states for the ethanol market, New Energy Blue LLC (Leola, Pennsylvania) is proposing the construction of an advanced fuel ethanol refinery in Mason City, Iowa. The company aims to process 275,000 tons per year of cellulosic material, such as corn stalks and wheat straw, into 20 million gallons per year. New Energy Blue had proposed a similar refinery in Spiritwood, North Dakota, but that project was placed on hold last year, amid concerns about siting and feedstock supplies. Subscribers can read detailed reports on the Iowa and North Dakota projects.
Unexpected Support for Ethanol Blending
In a twist, the American Petroleum Institute (API) is among the organizations calling for federal legislation that would allow for national year-round sales of E15. The EPA defines E15 as gasoline blended with 10.5% to 15% ethanol. The API and other groups sent a letter to the U.S. Congress that says E15 legislation "will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations."
The Biden administration allowed E15 gasoline to be sold during the summer months via emergency waivers, in an effort to reduce then-record gasoline prices. Normally, E15 is banned in most of the U.S. during the summer because of air pollution concerns. For more information, see April 13, 2022, article - Biden Administration Pushes to Extend E15 Gasoline for Summer Months.
Non-Conventional Biofuels Also to Grow
The EPA will set blending mandates for non-conventional biofuels at 5.82 billion gallons in 2023, 6.62 billion gallons in 2024 and 7.43 billion gallons in 2025, sources told Reuters. One of the largest non-conventional biofuel projects under construction is Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) $1.25 billion Martinez Refinery renewable fuels project in the East Bay region of California's San Francisco Bay area. It is being developed in three phases.
Marathon began construction in April at a refinery that had closed in 2020 due to economic problems stemming from COVID-19. When all three phases are complete, the company expects to produce 730 million gallons per year of renewable diesel from bio-based feedstocks such as animal fats, soybean oil and corn oil. The first phase, which covers 260 million gallons per year, is targeted to be mechanically complete toward the end of first-quarter 2023. Subscribers can read detailed project reports on Phase I, and phases II and III.
NEXT Renewable Fuels (Portland, Oregon) is seeking permits for a proposed biorefinery in Clatskanie, Oregon, which would process feedstocks such as waste oils and animal fats into 37,500 barrels per day of renewable fuels. The project won a big boost last month, when United Airlines (Chicago, Illinois) announced it would invest as much as $37.5 million in support of the biorefinery, which is designed to produce sustainable aviation fuel (SAF), renewable diesel and other products. Subscribers can learn more from Industrial Info's project report and November 17, 2022, article - U.S. Refining Sector Is Down, but Not Out.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active biofuel-refining projects in the U.S. Alternative Fuels Industry.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a heat map of active refining projects in the U.S. Alternative Fuels Industry, from Industrial Info's Geolocator tool.The EPA will call for overall blending mandates of 20.82 billion gallons in 2023, 21.87 billion gallons in 2024, and 22.68 billion gallons in 2025, the sources told Reuters. The EPA's biofuel mandate for 2022 is 20.63 billion gallons, plus 250 million gallons to compensate for volumes that were not blended in previous years. Between 67% and 73% of the requirement for each year will be for conventional biofuels, like corn-based ethanol.
Among the projects under construction to produce high-grade ethanol is Lakeview Energy LLC's (Chicago, Illinois) $50 million overhaul of its ethanol plant in Coshocton, Ohio. The company is performing upgrades and revamping equipment at the now-shuttered, 55 million-gallon-per-year biorefinery to produce USP-grade and fuel-grade ethanol. The project is expected to begin commissioning in January. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can learn more from a detailed project report.
In one of the biggest U.S. states for the ethanol market, New Energy Blue LLC (Leola, Pennsylvania) is proposing the construction of an advanced fuel ethanol refinery in Mason City, Iowa. The company aims to process 275,000 tons per year of cellulosic material, such as corn stalks and wheat straw, into 20 million gallons per year. New Energy Blue had proposed a similar refinery in Spiritwood, North Dakota, but that project was placed on hold last year, amid concerns about siting and feedstock supplies. Subscribers can read detailed reports on the Iowa and North Dakota projects.
Unexpected Support for Ethanol Blending
In a twist, the American Petroleum Institute (API) is among the organizations calling for federal legislation that would allow for national year-round sales of E15. The EPA defines E15 as gasoline blended with 10.5% to 15% ethanol. The API and other groups sent a letter to the U.S. Congress that says E15 legislation "will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations."
The Biden administration allowed E15 gasoline to be sold during the summer months via emergency waivers, in an effort to reduce then-record gasoline prices. Normally, E15 is banned in most of the U.S. during the summer because of air pollution concerns. For more information, see April 13, 2022, article - Biden Administration Pushes to Extend E15 Gasoline for Summer Months.
Non-Conventional Biofuels Also to Grow
The EPA will set blending mandates for non-conventional biofuels at 5.82 billion gallons in 2023, 6.62 billion gallons in 2024 and 7.43 billion gallons in 2025, sources told Reuters. One of the largest non-conventional biofuel projects under construction is Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) $1.25 billion Martinez Refinery renewable fuels project in the East Bay region of California's San Francisco Bay area. It is being developed in three phases.
Marathon began construction in April at a refinery that had closed in 2020 due to economic problems stemming from COVID-19. When all three phases are complete, the company expects to produce 730 million gallons per year of renewable diesel from bio-based feedstocks such as animal fats, soybean oil and corn oil. The first phase, which covers 260 million gallons per year, is targeted to be mechanically complete toward the end of first-quarter 2023. Subscribers can read detailed project reports on Phase I, and phases II and III.
NEXT Renewable Fuels (Portland, Oregon) is seeking permits for a proposed biorefinery in Clatskanie, Oregon, which would process feedstocks such as waste oils and animal fats into 37,500 barrels per day of renewable fuels. The project won a big boost last month, when United Airlines (Chicago, Illinois) announced it would invest as much as $37.5 million in support of the biorefinery, which is designed to produce sustainable aviation fuel (SAF), renewable diesel and other products. Subscribers can learn more from Industrial Info's project report and November 17, 2022, article - U.S. Refining Sector Is Down, but Not Out.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active biofuel-refining projects in the U.S. Alternative Fuels Industry.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
