CO2 Sequestration at Raeford North Carolina

Benchmark intends to undertake the development work for a CO2 injection project at the Raeford North Carolina plant including evaluation of the saline aquifer suitability, injection well permitting requirements, incremental air emissions, and DOE co-funding investigation.

Benchmark participated in the pre-development of an ethanol project in Aurora North Carolina (approximately 180 miles from Raeford) where CO2 sequestration was determined feasible to be injected unto the underground saline aquifer. We anticipate the geological conditions in Raeford (Coastal Plain) to be comparable to the conditions in Aurora. The important nature of the CO2 injection project would make it a suitable candidate for implementation in a second phase, after the initial commissioning of the Raeford ethanol production operations.

Preliminary Assessment of North Carolina Saline Aquifer Suitability:

Analysis and site characterization were performed in 2006 during the development of the Agri Ethanol Project in North Carolina to determine the feasibility of injecting CO2 in the saline aquifer for long term storage, based on available geological data.

Some of the work performed included:

• Seismic surveys to define the subsurface geological structure and identify features that

could create leakage pathways in the subsurface.

• Formation pressure measurements, if available, to map the rate and direction of

groundwater flow.

• Water quality samples to demonstrate the isolation between deep and shallow

groundwater.

• Geological site description data from wellbores and outcrops to characterize the storage

formation and seal properties.

The project results were obtained in coordination with:

• United States Department of Energy (USDOE) Carbon Sequestration Regional Partnership Programs, in particular the Southeast Carbon Sequestration Partnership, which includes North Carolina (SECARB)

• United States Geological Survey (USGS)

• North Carolina Geological Survey

The analysis identified two potential subsurface zones that have good potential for CO2 sequestration.

These sites are throughout the Coastal Plain in North Carolina at depths greater than 1,500 feet, that contain saline groundwater and are far below the base of the underground sources of drinking water (USDW). These units contain sand zones with thickness of at least 20 feet and the sand zones are underlain and overlain by clay zones with thickness of at least 20 feet. These provide permanent containment and trapping the injected CO2.

If underground drilling proves difficult at the Raeford property, the study did identify an injection site in Sanford North Carolina (50 miles away). This location has sediment-filled Triassic-age rift basins which make it suitable for CO2 Geo sequestration.

Raeford may require a deeper (more costly) drilling to reach the saline aquifer. However, geological CO2 storage is generally considered to be more effective at depths greater than 2,500 feet, where ambient pressures and temperatures can result in CO2 being in a supercritical fluid state. The density of CO2 fluid will range from 50 to 80 percent of density of the saline groundwater under these conditions.

Conclusions:

Based on the Aurora project analysis and review of the geological characteristics in North Carolina, there is the potential in Raeford for permanent containment of CO2 with sufficient storage capacity in sand zones with sufficient thickness, porosity, lateral extent and hydrologically isolated from fresh waters aquifers.

For additional information, please contact the Company

Benchmark Technology

Benchmark group of companies continues developing and advancing technology in the agro-industrial space, delivering engineering solutions to improve yields, operational margins and transforming the use of conventional energy.

We are pleased to inform that the U.S Patent and Trademark Office has approved the Patent Application No. 16/682,457 consisting of a System and Process for producing Biogas from an Ethanol Slurry Mix.

We consider this patent fundamental for deploying the use of renewable energy, further reducing the Carbon Index in the ethanol and advanced biofuel industry.

This technology allows the self-generation of biogas for the required energy in the production bio-conversion process, eliminating the use of hydrocarbons.

For additional comments, please contact the company.

Typical Plastic Fusion ® covered Anaerobic Digestor.

Renewable Jet Fuel Outlook

What is the quantity of renewable aviation fuel, as a percentage of pre-COVID-19 worldwide fleet consumption, that could be created per year without adversely affecting food production or causing a negative environmental impact such as deforestation?

Recently, Aviation Week France Bureau Chief, Thierry Dubois had the following comments:

The International Civil Aviation Organization estimates that about 600 million metric tons of jet fuel will be necessary to cover all aviation needs in 2050. This could require up to 45 exa-joules (EJ, a unit of energy) of biomass input to biofuel production, given the relatively low efficiency of the transformation process.

A sustainable biomass supply of 70 EJ could be produced each year, “possibly going up to 100 EJ, thanks to tightly regulated reforestation efforts,” the Energy Transitions Commission (ETC) suggested in a November 2018 report. So all aviation demand in 2050 could be met by sustainable biofuel production, according to the ETC, which is a lobbying group representing energy producers (such as Shell), energy users (such as materials manufacturer Saint-Gobain) and economists (such as Nicholas Stern).

Aviation is a priority, according to the ETC. Fossil liquid fuels—and their biofuel equivalents—are particularly well-suited to aviation because of their energy density. “Aviation is almost the only sector of the economy where there appears to be no feasible alternative to a bio-based route to achieve net-zero carbon emissions,” the ETC report says. Batteries and hydrogen are ill-suited because of their low energy density.

“The Aviation industry cannot rely on developments in the road transport sector to drive biofuel development and production volume—the onus is on aviation to create and foster a viable industry”

A key factor to sustainability is keeping the use of purpose-grown plants to a minimum, as they would compete with food production. In the near future, Fuel should be produced primarily from waste streams. The challenge then is to collect municipal, agricultural or forestry waste.

“There are exciting long-term opportunities with synthetic fuels such as ‘power to liquid,’” adds a spokesman for the Air Transport Action Group (ATAG), a lobbying group in commercial aviation. The process uses sunlight as the power source to convert CO2 from the air and water into jet fuel. Challenges are the low power density of sunlight and the stability—as opposed to reactivity—of water and CO2.

ATAG sees sustainable aviation fuel as part of the solution, along with aircraft technology and operational improvements, for the industry to meet its goal of halving CO2 emissions by 2050 from 2005 levels.

For additional information, please contact the company.

Renewable Energy World Outlook

The renewable-energy industry could create more than a million jobs a year if countries invest enough to meet their target for cutting global carbon emissions, according to an advocacy organization. Solar, wind and other forms of green energy could add 42 million jobs by 2050 if nations spend more aggressively to limit the increase in average global temperatures, the International Renewable Energy Agency said.

Governments should not relax their efforts even though air pollution has abated in places as a result of the coronavirus’s impact on economic activity, the Abu Dhabi-based agency said in a report released on Monday. “This year will be very special because emissions will be decreasing,” Irena Director-General Francesco La Camera told reporters in a conference call.

“But we have to be very careful about a rebound effect that can bring us on the wrong path. What we are calling for is to avoid the wrong policies that may compromise this vision of the future.” Under the 2015 Paris climate accord, governments aim to limit the increase in temperatures this century to less than 2 degrees Celsius (3.6 degrees Fahrenheit). The use of fossil fuels is widely blamed for contributing to global warming, and Irena promotes renewables as a way to minimize climate change. Oil futures fell on Monday April 19 to the lowest in more than two decades, on concern the world is rapidly running out of places to store crude after output cuts proved insufficient to cope with plunging demand. Volatility in oil prices will probably discourage investors.

In its first-ever Global Renewables Outlook, Irena also said: To meet the Paris accord temperature target, global investment in all types of energy must increase to $110 trillion over 2016-2050 from a currently planned $95 trillion The increase would include a doubling in investment in renewables, to $27 trillion from $13 trillion.

This greater renewables investment could create 42 million jobs, up from an estimated 11 million in the industry currently “New jobs in transition-related technologies and sectors are expected to outweigh job losses in fossil fuels and nuclear energy” The world could reach zero carbon emissions if investments ramped up to $130 trillion, of which $38 trillion would need to go to renewables.

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Standing By

Shelter in place restrictions are in place across the United States in an attempt to slow and control the spread of the COVID – 19 or Corona Virus. As of this writing there are 122,653 COVID-19 total cases in the US with a reported 2,112 deaths.

The social distancing restrictions have been extended thru April 30, with no certainty if they may have to be further extended. This has resulted in an unprecedented economic contraction in the country.

One implication of the virus-related restrictions is that people are driving much less than before, which means that gasoline and ethanol use are declining. The prices have been further affected by the recent market price reduction in oil prices promoted by a market control and market share battle between Saudi Arabia and Russia.

The price of ethanol has declined $0.36 per gallon or 26% since February, however, as a result of the shelter in place restrictions, the demand of gasoline and ethanol is also been reduced dramatically.

On March 26, The Department of Agricultural and Consumer Economics of the University of Illinois at Urbana-Champaign published a study that attempted to calculate the potential level of ethanol demand destruction over the next few months and the associated impact on corn ethanol use.

The estimated reductions in ethanol use are 143 million gallons in March, 391 million gallons in April, and 207 million gallons in May, for a total reduction of 741 million gallons. Converting these to reductions to corn used to produce ethanol results in a total reduction in corn ethanol use for the three months of 256 million bushels, an amount that would materially increase corn ending stocks for the 2019/20 marketing year.

There is still great uncertainty about the path of the coronavirus pandemic and the severity and length of restrictions necessary to contain the spread.

Looking forward, ethanol still holds the competitive advantage of value as an octane booster. Of all the options available to refiners, ethanol unquestionably has the highest blending octane number and is available at the lowest cost. While ethanol has been used for decades to boost octane, moving forward, the DOE must support the implementation of higher blends and octanes to enable greater fuel economy and significantly reduce emissions.

Numerous studies have shown that the use of high-octane fuels—in the range of 98 to 100 RON—in high- compression engines can greatly improve fuel efficiency and reduce both criteria pollutants and greenhouse gas (GHG) emissions.

The ethanol demand will return once the health crisis subsides. The US Ethanol industry produced 15.8 Billion Gallons of fuel grade ethanol which accounted for 54% of the world’s production of ethanol, with 350,000 direct and indirect jobs supported in 2019.

The US farmers, while enduring the hardship of the Corona Virus situation, are preparing to get back to work, continuing their support for renewable fuels in 2020.

Last week, Reuters polled 26 analysts for U.S. corn and soybean planting intentions. On average they expect 94.328 million and 84.865 million acres, respectively. That would be a 5.2% rise for corn and an 11.5% rise for soybeans.

The combined corn and soybean acres, are estimated at 179.2 million acres. That would be the second-highest in history behind 180.3 million in 2017.

The industry and the markets will respond, stronger than before. We are standing by ready to answer as soon as the health authorities consider it safe.

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Humankind TO DO List

The Lancet, together with the non-governmental advocacy group EAT, recently assembled a commission of over 35 world leading scientists from across the globe to issue a report with recommendations for a sustainable food system in the future.

The question was: Can we feed a future population of 10 billion people within planetary boundaries ?

The answer is YES, but humankind needs to transform its eating habits, improve food production and reduce food waste.

The summary of the 10 areas that must be improved are as follows:

1. Increase Crop Diversity:

Three quarters of the world’s food comes from just 12 plants and 5 animal species, even though there are more than 300,000 known edible plants. These habits leaves the food supply vulnerable to climate change. Policies and Technology to address this situation need to be developed.

2. Boost Underused Crops:

Corn, soy, wheat and rice dominate global agriculture. Underused crops such as fruits and nuts need to double their production.

3. Change Fertilizer Use:

U.S. farmers need to reduce their fertilizer use, while farms in other parts of the world, where yields are lower, need to use more. Precision agriculture technologies can help farmers to pinpoint the exact amount. These technologies need to be affordable to rural farmers in developing nations.

4. Optimize Land Use:

Much of the world’s land is difficult to farm today. Optimizing where we grow is a necessity. Selection of the right crop, when to plant and where is critical.

5. Increase Seafood Production:

Wild catches are exhausted but the world needs more supply. New aquaculture technologies are still in their infancy but will need to be developed. What happens when antibiotic use is increased?, Where does the feed comes from?, What happens if genetically modified fish escape into the wild? Nobody is quite sure.

6. Use Less Water in Agriculture:

Farmers need to make the most of every drop. Out goes inefficient crop sprinklers in favor of micro-irrigation systems.

7. Eat Less Meat:

A more plant based diet will allow the quantities needed and reduce green gas emissions. There are several companies developing meat substitutes; however, the inclusion into daily eating habits is constrained by culture, personal preferences and political will rather than technology.

8. Cut Food Waste:

Many Western countries discard as much as 50% of their food. Systems to monitor food and tell consumers when is safe or unsafe to consume will help.

9. Reduce Food Loss:

Lots of food is destroyed in production or transportation before it is sold. New storage infrastructure needs to be developed to avoid the spoil of food in rural, underdeveloped areas.

10. Improve Trade Policy:

Strong local food systems are important, but not everyone should grow their own food. Countries trying to gain “food independence” will practically guarantee an increase in destructive practices such as deforestation. The world needs trade policies that encourage regions best suited for food production to supply areas where agriculture poses greater risk to ecosystems or the global environment.

About The Lancet: The Lancet is a weekly peer-reviewed medical journal. It is amongst the world oldest and most prestigious publications. (Est. 1823)

About EAT: EAT is a non-profit startup dedicated to transforming our global food system.

Year-Round Sales of E15 Approved

U.S. consumers will see a change at the gas pump after the Environmental Protection Agency approved the use of E-15 ethanol year-round.

E-15 is a fuel blend using 15 percent ethanol. Standard gasoline contains 10 percent or less. In 2011, the EPA approved the sale of E-15, but banned it from June until September, citing potential environmental issues. However, the agency has now approved sales of E15 year-round.

At the gas station, drivers will now see E-15 pumps. Some will be displayed as "Regular 88," one octane level higher than standard 87. Right now only a few thousand gas stations in the U.S. sell the fuel

In the June 2019 Fuel Ethanol Workshop and Expo held in Indianapolis, Mr. Tom Chalfant , a farmer and Vice Chairman of Cardenal Ethanol was quoted in Fox News as follows:

“About 30 percent of U.S. corn goes into ethanol production, keeping up the demand for Midwestern corn. Without ethanol, corn prices would be very, very cheap, the government would be making subsidy payments to farmers, and farmers would rather make their money out of the market than from government subsidies.”

However, environmentalists fear E-15 will have a harmful impact on air and water quality.

Addressing the concerns, The Indiana Department of Environmental Management published the following statement:

"IDEM’s Office of Air Quality indicated there is a slight increase in evaporative volatile organic compound emissions with E15 gasoline, but they are not very reactive to induce ozone formation. Therefore, there is no notable impact on actual air quality."

The EPA has approved the use of E-15 in car models 2001 and newer.

Benchmark Long Term Vision for Biofuels.

With the global population rising rapidly, growing food will take precedence over biofuel production. The future requirements for biofuels will depend on the development of low carbon technologies and advances in non-food feedstocks.

Bioenergy, which includes both biomass and biofuel, has been adopted by governments around the world as a viable method for generating carbon-neutral power, at least until the reliability and cost of other renewables sources improves.

Current biofuel production has come under attack, both for pulling investment away from other green technologies and for not being low-carbon.

New technologies are now available to modify current biofuel plants utilizing self-generating equipment for combined heat and power (CHP). This will allow biofuel plants to eliminate the use of hydrocarbons thus eliminating the carbon footprint.

In addition there is conclusive research that crops for energy can be grown on a mass scale without negatively impacting food security.

Global population levels are set to hit 9.8 billion by 2050 and 11.2 billion by 2100, according to a 2017 United Nations report. Obviously, this growth will need for heightened levels of energy production – but it will also mean many more hungry mouths to feed. If citizens are forced to choose between food and fuel, few will choose the latter.

Consequently, there are concerns that any increase in the use of bioenergy will come at the expense of agricultural land that could be used for food crops.

According to Global Food Security, a UK cross-government program on food security research, the planet will need to produce more food in the next 35 years than it has produced in the entirety of human history. The likelihood of achieving such a goal will be made more difficult by changing dietary habits, increasing urbanization and rising sea levels.

Dr Naomi Vaughan, Senior Lecturer in Climate Change at the University of East Anglia, recently warned that the growing demand for bioenergy crops could potentially exacerbate food security issues if “it was poorly regulated”. However, recent developments suggest that bioenergy and food crops can be grown in parallel rather than in competition.

Scientists are looking at ways of creating bioenergy-suitable crops that can be grown on the type of marginal land that is unsuitable for agricultural cultivation

If scientists can grow bioenergy plants on land that was previously considered useless, then the economic benefits for communities are greatly enhanced, opening up new agricultural revenue streams. Farmers in locations susceptible to drought may find that bioenergy crops provide more reliable harvests than those dedicated to food.

Benchmark is preparing to deploy its proprietary carbon neutral technologies and multi-feedstock capabilities to an existing 1st. generation ethanol plant in the United States.

For additional information, please contact the company.

Deal or No Deal

There is a “Green New Deal” legislation being proposed in the United States. It consists on a set of proposed economic stimulus programs aim to address climate change and economic inequality.

The name is derived from the “New Deal” of social and economic reforms enacted by Franklin D. Roosevelt. The Green New Deal combines Roosevelt's economic approach with modern ideas such as renewable energy and resource efficiency.

Proponents of the new legislation need to take notice of the incredible U.S. ethanol success story regarding renewable energy.

With the implementation of the Renewable Fuel Standard (“RFS”), in 2018, the U.S. (largest biofuel producer in the world) produced 16.1 billion gallons of ethanol and 43 million metric tons of co-products and distillers oil that had substantial economic impacts, including:

a. 71,367 direct jobs

b. 294,516 indirect and induced jobs

c. $46 billion contribution to GDP

d. $25 billion in household income

e. $10 billion in tax revenue

The astounding 16.1 billion gallons of clean-burning renewable ethanol in 2018 was produced by 210 ethanol plants located across 27 states.

Total U.S. demand rose to a record 16.2 billion gallons, 300 million gallons more than a year ago, driven largely by record exports of over 1.6 billion gallons as global octane demand continues to grow.

In addition to record production levels, the industry delivered:

ENERGY INDEPENDANCE

Energy security is one of the main drivers behind the RFS. In 2018, the addition of 16.1 billion gallons of ethanol to the U.S. fuel supply displaced an equivalent 550 million barrels of oil. Without the contribution of 16.1 billion gallons of ethanol, U.S. import dependence would have been equivalent to 20% of petroleum demand.

CLEAN AIR

Ethanol displaces hydrocarbon substances like aromatics in gasoline, helping to reduce emissions of air toxics along with particulate matter, carbon monoxide, nitrogen oxides, and exhaust hydrocarbons. These pollutants cause smog and ground-level ozone and adversely affect human health.

FUTURE DEMAND DRIVERS

The company anticipates an additional 7 to10 billion gallons of new demand, within the next 5 to 10 years.

Among the expected demand drivers are the following:

1. New RFS being enacted globally.

The world is taking notice of the success of the United States and Brazil and new RFS are being implemented in Europe, The Caribbean and Asia. There are currently over 30 countries with a RFS mandates.

China alone (largest automobile market in the world), consumes 40 billion gallons of gasoline and one billion gallons of ethanol. Projections show that by 2020 gasoline consumption will reach 46 billion gallons (USDA 2017). Meeting the national new RFS-E10 mandate would require an extra 3.6 billion gallons of ethanol, putting China ahead of the European Union to become the world’s third-largest ethanol consumer.

2. The Market is demanding higher blends

The implementation of E15 year-round could alone deliver new demand requirements of 4 billion new gallons. E85 continues to be available at the pump for Flex-Fuel vehicles and growing in volumes.

3. The U.S. Automobile Manufacturers are proposing higher octane fuels.

A General Motors representative, recently told industry leaders at the 2019 National Ethanol Conference that the industry will work to eliminate lower research octane number (“RON”) gasoline, and designate a 95 RON only fuel. The industry requires the higher octane fuel in order to meet the future efficiency of engines and higher requirements on miles-per-gallon.

The higher octane is accomplished by blending more ethanol (E30). A new national standard of 95 RON will require an increase of 7% in ethanol production annually.

The industry needs to prepare to meet the new demand by utilizing technology to deliver higher yields, use of alternate feedstocks (cellulosic) and improve the use and sources of energy, eliminating the use of hydrocarbons to be 100% renewable, aligning with the Green New Deal.

For additional information, please contact the company.

E15 to be approved for year-round sales

The Environmental Protection Agency (EPA) is beginning a formal rulemaking process to allow year-round sales of E15 nationwide. Currently, E15 (gasoline containing 15% ethanol) cannot be sold during the summer months in most of the country.

The summertime ban on E15 is the result of a burdensome, decades-old regulation that offers no environmental or economic benefit whatsoever. Eliminating the summertime barrier to E15 will save consumers money and reduce emissions, enhance competition, and provide a boost to the farm and ethanol producer’s economy.

EPA has already issued a waiver allowing the use of E15 in all vehicles built in 2001 or later. This means roughly 90% of all vehicles on the road today are legally approved to use E15.

The infrastructure to use E15 is already in place and growing. Thanks to USDA’s Biofuels Infrastructure Partnership grant program and ethanol industry initiatives like Prime the Pump, E15 is available at more than 1,200 stations across 29 states and growing.

E15 offers consumers greater choice at the pump, lower prices, higher octane, and cleaner air.

The current domestic demand for fuel ethanol is approximately 15 Billion Gallons per year. The new E15 approval is expected to boost demand, up to six to seven billion gallons more.