ABFA Applauds First Biogas-Based Fuel Approval Under The Renewable Fuel Standard
Wednesday, September 3, 2014
EPA’s Recent Pathway Approval a Step in the Right Direction
Washington, DC – The Advanced Biofuels Association (ABFA) applauds the Environmental Protection Agency on its recent pathway approval for dimethyl ether (DME). With this newest pathway, Oberon Fuels Inc. becomes the first company to announce plans to commercialize DME fuel production, which will now be eligible for high value D-Code 3 (cellulosic) and D-Code 5 (advanced) renewable identification numbers (RINs). This technology introduces a new fuel to the diesel market place for the first time. Similar to propane this fuel offers many advantages for the transportation sector in the future. While the approval of this biogas-based fuel under the Renewable Fuel Standard (RFS) is a positive step forward, the advanced and cellulosic industry is still awaiting decisions for nearly 40 other pending pathways for feedstocks, technologies and types of fuels.
“While the recent approval of a new dimethyl ether pathway will bring more gallons under the RFS, too many cutting edge technologies are still trapped in limbo, stuck in an EPA approval process that simply takes too long,” said Michael McAdams, ABFA President. “EPA must move quickly to determine the fate of these pending pathways. By delaying, EPA puts innovators on the sideline and removes potential sustainable gallons from being counted towards the Renewable Volume Obligation targets.”
Earlier this year, EPA announced plans to revise the pathways process. Pathway approval is vital to leveling the playing field for advanced and cellulosic biofuels with those already approved. ABFA remains hopeful that EPA will drive this process expeditiously by making clear, timely, well-reasoned decisions on whether applications will qualify under the RFS program. Without approved pathways, innovative biofuels producers are unable to qualify for RINS and count their gallons under the RFS, putting their ability to secure financing in jeopardy.
ABFA and its members stands ready to continue to work constructively with EPA to improve the pathways process for the advanced and cellulosic biofuels industry. Without resolution, entrepreneurs will only remain on the sidelines waiting to invest in innovative new fuels and feedstocks and produce the variety of sustainable gallons that Congress envisioned when passing the RFS.
The Advanced Biofuels Association represents nearly 40 member companies who produce advanced and cellulosic biofuels, as well as renewable feedstocks. Find more information at AdvancedBiofuelsAssociation.com, and follow the conversation on Twitter at @BetterFuels.