On August 24, 2016, Brazil's government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost competitive with gasoline, and will severely impede the ability of ethanol and biodiesel to make up a larger percentage of Brazil's energy mix. Elizabeth Farina, head of the cane industry association Unica, stated that this change will push cane mills to switch from biofuel to sugar production. Two days after the announcement that Brazil would not be renewing the ethanol tax break, Brokers INTL FCStone predicted that the top cane growing region of Brazil would produce 4.7 percent less ethanol in the 2016/2017 crop than it did in 2015/2016.
- Bergeson & Campbell, P.C.
- Brazil Backtracks From Plan To Increase Ethanol Use Through Tax ...
Incentives for aviation biofuel have a limited role in decarbonisation of air travel
While it was once hoped that biofuel would be a game-changer for transport emissions, evidence has since emerged of unwanted effects from biofuel production, including direct effects such as deforestation to grow biofuel crops, and ‘Indirect Land Use Change’ (ILUC) effects such as the use of previously forested land for agriculture (if agricultural land is used) for biofuel. Recent European Commission research that tries to capture these ‘ILUC impacts’ suggests European biofuel policy may...
BRAG Biofuels Industry Outlook for 2017
The biofuels industry is likely to face increasingly challenging times during the tenures of the new 115 th Congress -- which began on January 3 -- and the Trump Administration, scheduled to begin this Friday, January 20. Throughout his campaign for President, Trump repeatedly pledged his support for biofuels and the federal Renewable Fuel Standard (RFS). Indeed, it is this support that helped Trump win in key Midwestern battleground states, including Iowa. Despite this, Trump has nominated fossil fuel...
DOE Bioenergy Technologies office to request applications for Biomass Research and Development ...
On January 13, 2017, the DOE Bioenergy Technologies Office (BETO), together with the U.S. Department of Agriculture (USDA) National Institute of Food and Agriculture (NIFA), announced the intent to issue a request for applications (RFA) titled “Fiscal Year 17 Biomass Research and Development Initiative (BRDI).” Projects funded through BRDI must address one of the foll owing topic areas: Feedstocks development: Research, development, and demonstration (RD&D) focused on feedstocks and feedstock...
Weekly Roundup of other biobased news
Reuters, “Genscape Says It Will Fight EPA Move to Boot It from Biofuels Program” University of Bath, “Scientists Make Plastic from Christmas Trees” Washington Examiner, “Energy, Farm Policy Collide in the New Congress” Growth Energy, “Poll: Trump Voters Overwhelmingly Support Ethanol” PETROSS, “Dual-Purpose Biofuel Crops Could Extend Production, Increase Profits”
Petition for Waiver of 2016 cellulosic biofuel volumetric requirements
On December 28, 2016, the American Fuel & Petrochemical Manufacturers (AFPM) submitted a petition requesting that EPA waive the cellulosic biofuel volumetric requirements for the 2016 compliance year citing an inadequate domestic supply of the fuel. Based on the amount of cellulosic fuel produced through November, AFPM estimated that between 173.8 and 190 million gallons will be produced in 2016, which is approximately 40 to 60 million gallons below the 230 million gallon target set by EPA in December 2015....