In the News
Jan 31, 2024
U.S. fuel ethanol production was up more than 21% the week ending Jan. 26 after falling to nearly a three-year low the previous week, according to data released by the U.S. Energy Information Administration on Jan. 31. Stocks of fuel ethanol were down 6% and exports were up 13%.
Fuel ethanol production averaged 991,000 barrels per day the week ending Jan. 26, up 173,000 barrels per day when compared to the 818,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Jan. 26 was down 37,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 24.27 million barrels the week ending Jan. 26, down 1.545 million barrels when compared to the 25.815 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Jan. 26 were down 172,000 barrels.
Exports of fuel ethanol averaged 137,000 barrels per day the week ending Jan. 26, up 16,000 barrels per day when compared to the 121,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2023 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Jan. 26.
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Jan 29, 2024
Growth Energy, the nation’s largest biofuel trade association, released updated data today showing that American drivers recently surpassed a massive milestone: 100 billion miles driven on affordable, homegrown E15 fuel.
The 15-percent biofuel blend is saving motorists nationwide an average of up to 15 cents per gallon at the pump. In some states, amid heightened fuel costs this past summer, drivers saw E15 savings climb as high as 60 cents per gallon.
“At Growth Energy, we are proud to lead the charge on American-made, plant-based fuels,” said CEO Emily Skor. “Homegrown biofuels deliver value for consumers at the pump, value for American agriculture and rural communities, and value for our nation’s climate goals. We’re proud of the 100 billion miles driven on E15 and excited that consumers have access to an affordable, earth-friendly option to fuel their travels.”
Despite the widespread use of E15 to power light-duty vehicles, this fuel blend is only available for sale nine months of the year. Outdated regulations prevent it from being sold during the summer without the issuance of an emergency waiver each year from the U.S. Environmental Protection Agency (EPA). Skor used today’s news about 100 billion miles driven on this fuel to urge lawmakers to find a federal legislative solution that provides for the unrestricted sale of E15 in every state, all year long.
“There aren’t very many products on the market today that allow consumers to both save money and lower their carbon emissions at the same time. E15 is one of them,” she added. “We need a permanent fix to ensure retailers can continue to offer this fuel option and consumers can continue to rely on it to quickly and easily lower their fuel costs and shrink their carbon footprint.”
About E15
E15 is a fuel blend made of gasoline and 15% bioethanol. The U.S. Environmental Protection Agency (EPA) has approved its use in all cars, trucks, and sport utility vehicles (SUVs) made in model year 2001 and newer—representing more than 96% of all vehicles on the road today. E15 can be found at over 3,400 gas stations in 31 states and is legal for sale in every state except California. Last summer drivers saved an average of 15 cents per gallon by filling up with E15 compared to regular, or E10. In some areas, E15 saved drivers as much as $.60 per gallon at the pump.
Learn more about E15 here.
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Jan 22, 2024
WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), Amy Klobuchar (D-Minn.) and Joni Ernst (R-Iowa) today introduced legislation that would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs to allow further growth for alternative fuels to be used in the aviation sector and create new markets for American farmers.
The Farm to Fly Act would utilize current USDA programs to support the development of SAF, clarify federal definitions for SAF and enable greater collaboration between USDA and the private sector.
“Sustainable aviation fuel is a promising alternative fuel source that can provide new markets for farmers while increasing our domestic energy production and security,” said Sen. Moran. “This legislation would increase the accessibility of biofuel for commercial use and directly support rural America and its farmers, the agriculture industry and the aviation sector.”
“Alternative energies like sustainable aviation fuel create jobs in rural areas, bolster our national security, and reduce carbon emissions from air travel,” said Sen. Klobuchar. “This bipartisan bill with Senators Moran and Ernst will be another step forward in securing new markets for domestically produced biofuel.”
“As we work toward energy independence, the U.S. Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model will play a key role in allowing homegrown, Iowa biofuel to meet the needs of the U.S. aviation industry while also creating new markets for biofuel producers,” said Sen. Ernst. “An investment in the development of sustainable aviation fuel is an investment in our national security, our environment, and our farmers.”
Companion legislation was introduced in the House of Representatives by Reps. Max Miller (R-Ohio), Nikki Budzinski (D-Ill), Angie Craig (D-Minn), Jasmine Crockett (D-Texas), Randy Feenstra (R-Iowa), Brad Finstad (R-Minn), Mike Flood (R-Neb) and Ashley Hinson (R-Iowa).
This legislation is also supported by a number of aviation, agriculture and energy leaders.
“The Kansas Corn Growers Association supports Senator Moran’s continued leadership in Sustainable Aviation Fuel with the Farm to Fly Act,” said Brent Rogers, President of the Kansas Corn Growers Association. “Corn-based ethanol can play a key role in Sustainable Aviation Fuel, and this legislation solidifies and strengthens our ongoing efforts with airline companies. Ethanol-based SAF would be a game-changer for corn and ethanol producers and the farm economy.”
"The National Sorghum Producers thank Senator Moran for the effort behind this legislation and the recognition that changes need to be within current law to allow flexibility for commodities to participate in the renewable fuels sector,” said Craig Meeker, Chairman of the National Sorghum Producers. “We look forward to working with Senator Moran and the Senate Agriculture leadership on a final product in the Farm Bill."
“America’s farmers are well-positioned to supply sustainable agriculture feedstocks that will help scale production of the sustainable aviation fuel in demand by airlines today,” said Lindsay Fitzgerald, Vice President of Government Relations at Gevo. “The Farm to Fly Act recognizes agriculture is key to enabling cleaner flight, including using a data-driven tool to account for the benefits of farmers’ production practices with the Argonne GREET model. Gevo thanks Senators Jerry Moran, Amy Klobuchar and Joni Ernst for their leadership and supports this legislation that affirms the role of farmers in growing these new fuels.”
“The path to decarbonizing the skies runs right through America’s heartland,” said Emily Skor, Growth Energy CEO. “The Farm to Fly Act would allow our farmers to drive a wave of new investment in sustainable aviation fuel (SAF). We thank Senators Moran, Klobuchar and Ernst for introducing this important legislation in the Senate and urge all lawmakers to get behind a bill that would position America as a leader in SAF and create new jobs in America’s rural communities.”
“RFA strongly supports the Farm to Fly Act, and we truly appreciate Sen. Moran—along with cosponsors Sens. Klobuchar and Ernst—and their effort to move forward this important legislation that creates more clarity and stability around the development of sustainable aviation fuels (SAF) made from U.S. crops,” said Geoff Cooper, President & CEO, Renewable Fuels Association. “This bill helps position SAF for takeoff by ensuring the best available science and modeling tools are used to calculate the carbon benefits of homegrown renewable fuels.”
“Increased partnership with the agriculture sector is imperative as the aviation industry works to increase production of cost-competitive sustainable aviation fuels. Airlines for America greatly appreciates Senators Moran, Klobuchar and Ernst’s leadership on this issue. This bill has a companion in the House, signaling the strong bipartisan, bicameral support for SAF development and expansion.” – Airlines for America
The Farm to Fly Act would:
- Clarify eligibility for SAF within current USDA Bio-Energy Programs, expanding markets for American agricultural crops through aviation bioenergy;
- Provide for greater collaboration for aviation biofuels throughout USDA agency mission areas, increasing private sector partnerships; and
- Affirm a common definition of SAF for USDA purposes, as widely supported by industry to enable U.S. crops to most effectively contribute to aviation renewable fuels.
Read the original press release here.
Jan 15, 2024
The International Energy Agency released a new report on Jan. 11, Renewables 2023, predicting that global biofuel demand will expand by 38 billion liters (10.4 billion gallons) between 2023 and 2028.
In the report, the IEA predicts that total biofuel demand will increase 23 percent to 200 billion liters by 2028. Renewable diesel and ethanol are expected to account for two-thirds of that growth, with biodiesel and biobased sustainable aviation fuel (SAF) accounting for the remainder.
Most of the new biofuel demand over the next five years is expected to come from emerging economies, particularly Brazil, Indonesia and India. Ethanol and biodiesel use is expected to expand the most in these regions. Renewable diesel and biobased SAF are expected to be the primary growth segments in advanced economies, including the U.S., European Union, Canada and Japan.
According to the IEA, renewable diesel and biobased SAF consumption are expected to expand by 18 billion liters through 2028. The U.S. and Europe are expected to account for 80 percent of that increase.
Ethanol and biodiesel are expected to expand by 13 percent over the next five years, with growth in emerging economies offsetting declines in advanced ones. The report predicts that European ethanol demand is expected to rise slightly through 2028, but that that increase will be offset by declines in the U.S. where gasoline use is expected to shrink. Biodiesel consumption is expected to expand in Brazil and Indonesia. The U.S. and Europe are expected to remain major biodiesel markets during the next five years, accounting for more than one-third of global biodiesel demand in 2028. Renewable diesel, however, is expected to capture new growth in demand due to its superior blending properties.
The IEA predicts that more than 60 percent of global biofuel demand and production growth over the next five years will take place in Brazil, Indonesia, India and Malaysia. Across these countries, ethanol use is expected to increase by 13 billion liters through 2028, with biodiesel consumption increasing by 8 billion liters. That projected growth accounts for nearly all expected expansion in emerging economies over the next five years.
Globally, biobased SAF use is expected to expand by nearly 5 billion liters through 2028, making up nearly 1 percent of global jet fuel supplies. The U.S., Europe and Japan are at the forefront of that expected growth.
In addition to these baseline predictions, the IEA’s report also outlines forecasts associated with the agency’s “accelerated case” in which stronger policy drivers and other factors could lead to significantly higher biofuel consumption.
Read the original story here.
United States Department of Agriculture
Jan 11, 2024
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that USDA is awarding $19 million in grants to U.S. business owners to increase the availability of domestic biofuels in 22 states and give Americans cleaner, more affordable fuel options at gas station pumps as part of President Biden’s Bidenomics agenda to lower costs and invest in America.
Blending ethanol into gasoline has helped reduce fuel costs by approximately 25 percent, contributing to falling gas prices across the country. Gas prices are now under $2.99 in more than half of U.S. states and saving the average driver more than $100 per month relative to peak prices. HBIIP increases the number of Americans that benefit from falling prices by expanding the use of ethanol-based fuels at gas stations around the nation.
The Department is making the awards through the Higher Blends Infrastructure Incentive Program (HBIIP), made possible with funding from President Biden’s Inflation Reduction Act.
“President Biden’s Inflation Reduction Act is giving people in rural areas the historic opportunity to expand clean energy and build an economy that benefits working families,” Vilsack said. “By increasing the supply of biofuels made here in the U.S., we are strengthening our energy independence, lowering costs for American families, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities.”
Secretary Vilsack made today’s announcement during his visit to the Iowa Renewable Fuels Summit in Altoona. Secretary Vilsack was awarded the Lifetime Champion of Renewable Fuels Award by the Iowa Renewable Fuels Association during the Summit.
Through this most recent tranche of awards, business owners are receiving $19 million to expand access to domestic biofuels in 22 states and strengthen America’s energy independence. For example:
- Casey’s will use a $5 million grant to install ethanol blend fuel dispensers at 111 fueling stations in Iowa, Illinois, Minnesota, Nebraska and South Dakota. Using these investments, the company aims to increase the amount of biofuels it supplies by 50 million gallons a year.
- Piasa Enterprises Inc. in Illinois will use a $200,000 grant to install two 30,000-gallon biodiesel storage tanks and associated piping at their Hartford fuel distribution center. The company projects an increase in the amount of biodiesel sold by 2 million gallons per year.
- In Maryland, AC&T Inc. will install two ethanol fuel dispensers and one ethanol storage tank. Through this project, AC&T owners aim to expand the amount of ethanol they supply by over 106,000 gallons a year.
The full list of states to receive funding is: Arizona, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, South Dakota, Texas and Wisconsin.
Since the start of the Biden-Harris Administration, USDA has invested more than $96 million nationwide to increase access to biofuels at fueling stations. $11.6 million of this has been invested in Iowa.
Background: Higher Blends Infrastructure Incentive Program
The Higher Blends Infrastructure Incentive Program (HBIIP) provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. Expanding the availability of homegrown biofuels strengthens energy independence, creates new revenue for American businesses and brings good-paying jobs to rural communities.
In June 2023, USDA made $450 million available in Inflation Reduction Act funding through the HBIIP to expand the use and availability of higher-blend biofuels. That same month, USDA also announced the first round of Inflation Reduction Act-funded HBIIP awardees.
USDA continues to accept applications for funding to expand access to domestic biofuels. These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. There are three quarterly application windows left, and the program ends Sept. 30, 2024. The next application deadline is March 31, 2024.
For more information, go to the HBIIP webpage.
Background: Inflation Reduction Act
This announcement is part of President Biden’s Investing in America agenda to grow the American economy from the middle out and bottom up by rebuilding our nation’s infrastructure, driving over $640 billion in private-sector manufacturing investments, creating good-paying jobs and building a clean-energy economy to tackle the climate crisis and make our communities more resilient.
The Biden-Harris Administration championed the Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis, a key pillar of Bidenomics and part of the Investing in America agenda. Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America. The Act provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions.
For more information on the Inflation Reduction Act, visit: www.rd.usda.gov/inflation-reduction-act.
Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
Read the original press release here.
Jan 10, 2024
The U.S. Energy Information Administration increased both its estimate of 2023 fuel ethanol production and forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released Jan. 9.
The EIA currently estimates that U.S. ethanol production averaged 1.02 million barrels per day in 2023, up from last month’s forecast of 1.01 million barrels per day. The agency also increased its forecast for 2024 fuel ethanol production to 1.02 million barrels per day, up from the forecast of 1 million barrels per day included in its December STEO. In addition, the January STEO includes the EIA’s first short-term forecast for 2025, with the agency predicting fuel ethanol production will continue to average 1.02 million barrels per day next year.
On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first quarter of this year, falling to 1.01 million barrels per day in the second and third quarters, and expanding to 1.03 million barrels per day in the fourth quarter. Moving into 2025, fuel ethanol production is currently expected to average 1.02 million barrels per day in the first and second quarters, 1.01 million barrels per day in the third quarter, and 1.04 million barrels per day in the fourth quarter. Fuel ethanol production averaged 1.05 million barrels per day in the final quarter of 2023.
The EIA maintained both its estimate that fuel ethanol blending averaged 930,000 barrels per day in 2023 and that fuel ethanol blending will continue to average 390,000 barrels per day in 2024. The agency currently predicts fuel ethanol blending will expand to 940,000 barrels per day in 2025.
Read the original story here.
Jan 9, 2024
U.S. ethanol exports dipped 1% to a robust 115.9 million gallons (mg). Canada was our largest destination for the 32nd consecutive month despite a 23% drop in volume. Shipments totaled 50.0 mg (of which 91% was denatured), accounting for 43% of global sales. The U.S. exported 22.6 mg to Colombia (up from essentially zero), which is a record high for that market. India imported 13.5 mg (a -1% decline) while the European Union (down 54%) and United Kingdom (down 39%) each imported 7.7 mg. Virtually all remaining ethanol exports landed in South Korea (3.8 mg, -37%), Mexico (3.4 mg, -33%), Jamaica (3.3 mg, a 6-fold increase), Peru (2.9 mg, -50%), and Singapore (0.8 mg, +47%). Brazil again was notably absent from the market. Ethanol exports through November 2023 totaled 1.27 billion gallons, 3% ahead of the same period in 2022.
The U.S. imported 3.3 mg of undenatured ethanol from Brazil and minimal volumes of denatured ethanol from South Africa. Total ethanol imports through November 2023 totaled 20.6 mg, 73% less than the same period in 2022.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slowed 7% to 829,911 metric tons (mt)—the lowest volume since April. Shipments landing in our top ten largest customers were mixed but up 3% overall, while a cumulative decline across our smaller markets (-44%) pulled down the November total. Mexico was our largest destination for the 17th consecutive month with exports of 177,724 mt. Still, this was an 8% decrease from October and a 6-month low. Other larger importers included South Korea (108,922 mt, +42%), Vietnam (101,389 mt, -16%), Indonesia (83,558 mt, +26%), Canada (78,341 mt, - 16% decline), Colombia (52,365 mt, quadrupled to an 11-month high) and China (33,189 mt, +9% to a 22-month high). DDGS exports through November 2023 totaled 9.82 million mt, lagging 3% behind the same period in 2022.
Read the original story here.
Dec 28, 2023
U.S. fuel ethanol production was up 3 percent the week ending Dec. 22, according to data released by the U.S. Energy Information Administration on Dec. 28. Stocks of fuel ethanol were also up 3 percent, while exports were down 33 percent.
Fuel ethanol production averaged 1.107 million barrels per day the week ending Dec. 22, up 36,000 barrels per day when compared to the 1.071 million barrels per day of production reported for the previous week, and the highest level of production reported since October 2021. When compared to the same week of last year, production for the week ending Dec. 22 was up 144,000 barrels per day.
Weekly ending stocks of fuel ethanol for the reached 23.517 million barrels the week ending Dec. 22, up 611,000 barrels when compared to the 22.906 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 22 were up 1.119 million barrels.
Fuel ethanol exports averaged 132,000 barrels per day the week ending Dec. 22, down 64,000 barrels per day when compared to the 196,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Dec. 22.
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Dec 21, 2023
CoBank’s Knowledge Exchange on Dec. 14 released a report focused on forces that will shape the U.S. rural economy next year. The report predicts that both ethanol producers and soybean crushers will benefit from rising demand for biofuels in 2024.
“The biofuel sector at large carries the momentum of historically large profit margins into the new year,” CoBank wrote in the report. With renewable identification number (RIN) prices declining, selling renewable diesel outside of the California market is expected to be less profitable. Ethanol margins are expected to remain comparatively healthy in 2024 due to a combination of affordable natural gas prices and corn prices that are under pressure from a record harvest and weak export demand.
A slowing global economy and surplus of energy on the work market is currently depressing fuel and ethanol prices. The risk of conflict spreading in the Middle East and disrupting supply lines among oil-exporting countries could result in a global energy shock and surge in fuel and ethanol prices, according to the report.
The report also notes that the booming renewable diesel industry combined with the shorter U.S. soybean crop harvest of 2023 will drive an expansion of soybean acreage in the U.S. next year, reducing available acreage for other crops. Soybean planted acreage is currently expected to be up 4 percent when compared to 2023, at 87 million acres. Corn acreage is expected to fall 4 percent to 91 million acres.
A full copy of the report is available on the CoBank website.
Read the original story here.
Dec 19, 2023
The U.S. EPA on Dec. 18 delivered its final rule to allow year-round E15 sales in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin to the White House Office of Management and Budget. OMB reviews marks a final step before a rulemaking is promulgated.
Several Midwestern governors in April 2022 filed petitions with the EPA requesting that the agency remove the 1-psi Reid vapor pressure (RVP) waiver for summer gasoline-ethanol blended fuels, which would effectively allow E15 to be sold year-round within their states.
The EPA is required by statute to respond to such petitions within 90 days but, to date, has failed to take final action. The agency released a proposed rule to implement the requested change in February 2023. A comment period on the proposed rule was open through April 20. The agency has now submitted the final rule for OMB review. Information released by OMB indicates the target issue date for the final rule is “to be determined,” but the agency has stated as part of an ongoing lawsuit that it currently plans to promulgate the final rule next spring.
That ongoing lawsuit was filed by the attorneys general of Iowa and Nebraska on Aug. 7 over the agency’s failure to respond to the Midwest E15 petitions. Documents filed as part of that ongoing lawsuit indicate that the EPA currently plans to issue a final rule by March 28, 2024.
The Renewable Fuels Association is urging the OMB to quickly finalize the rulemaking. “We are relieved to see that this rule has finally moved forward to the White House for review,” said Geoff Cooper, president and CEO of the RFA. “OMB review marks the final step in this long and arduous regulatory process. We are urging OMB to move quickly to finalize the Governors’ request so that the marketplace will have adequate lead time to continue preparing for implementation in 2024. Swift completion of this rule will ensure drivers in these eight Midwest states enjoy cleaner air and have uninterrupted, year-round access to lower-cost, lower-carbon E15 in 2024 and every year after that.
“While we strongly support the action being taken by these eight Midwestern states, the optimal solution for the marketplace is a permanent legislative fix that applies nationwide,” Cooper continued. “As a first order of business in the new year, we urge Congress to expeditiously adopt the Nationwide Consumer and Fuel Retailer Choice Act to provide the market certainty and stability that the entire nation is looking for.”
The American Coalition for Ethanol is also calling on OMB to move quickly with its review of the rule. "We are gratified EPA has at long last sent the final rule to allow Midwest states to offer E15 on a year-round basis,” said Brian Jennings, CEO of ACE. “Despite the upcoming Christmas holiday, we urge OMB to quickly perform its closing review so the final rule can be issued early in 2024. All market participants, including but not limited to retailers, wholesalers, terminal operators and refineries, should expect and plan for this rule to take effect in the eight states for the 2024 summer driving season and plan accordingly."
Growth Energy expressed gratitude that the rulemaking is moving forward. “This is a welcome step forward for farmers and drivers across the Midwest,” said Emily Skor, CEO of Growth Energy. “We’re grateful to the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin for pressing for uninterrupted access to low-cost, low-carbon E15, and we’ll continue to call on EPA and the White House to grant year-round E15 nationwide. Biofuels like E15 are a critical part of reaching our climate goals, and we urge President Biden to swiftly approve the expanded sale of E15.”
Additional information is available on the OMB website.
Read the original story here.
Dec 6, 2023
U.S. ethanol exports decreased 3% to a still-healthy 117.1 million gallons (mg). Canada was our largest destination for the 31st consecutive month with exports of 64.6 mg (94% denatured) accounting for 55% of total sales on a 7% increase from September. This is the largest single-country purchase since Brazil’s offtake in March 2019. The U.S. exported 13.7 mg to India (following four months of near-zero volumes) and 12.6 mg to the United Kingdom (down 8% from September). Virtually all remaining ethanol exports were distributed among seven markets, with the largest volumes landing in the Philippines (6.5 mg, +176%), South Korea (6.0 mg, +17%), Peru (5.7 mg, +89%), and Mexico (5.1 mg, -9%). Brazil again was notably absent from the U.S. ethanol export market. Year-to-date exports, totaling 1.16 billion gallons, are steady with last year at this time.
There were no U.S. imports on record in October, according to the monthly data. Only 17.4 mg of foreign ethanol has been imported thus far in 2023, of which essentially all was sourced from Brazil.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, tightened by 13% to a 6-month low of 896,708 metric tons (mt). Mexico was our largest destination for the sixteenth consecutive month with exports of 193,524 mt—a 4% decrease from September. DDGS exports to Vietnam were robust at 121,271 mt despite a 13% decline. Shipments strengthened to Canada, up 47% to a 16-month high of 92,924 mt. Other larger markets included South Korea (76,456 mt, -31%), Indonesia (66,351 mt, +7%), Turkey (38,325, +22%), Japan (35,451 mt, +1%), and China (30,530 mt, -8%). There was a notable lift in exports to Central American countries (a 5-year high) as well as record volumes to Cambodia. Year-to-date U.S. DDGS exports total 8.99 million mt, which lags 4% behind last year at this time.
Read the original story here.
Nov 30, 2023
The U.S. Grains Council (USGC) recently participated in a panel at the Latin American Energy Organization's (OLADE's) annual Energy Week. Pictured from left to right, the panel included Juan Diaz, USGC Latin America regional ethanol consultant; Julio Minelli of the Brazilian Association of Biofuels Producers; Flavio Castellari of the Brazilian Ethanol Cluster; Patrick Adam of the Chamber of Corn Ethanol in Argentina; Agustin Torroba of the Inter-American Institute for Cooperation on Agriculture; and Yamila Hana of the National Alcohol and Portland Fuels Administration.
Earlier this month, the U.S. Grains Council (USGC) was invited by the Latin American Energy Organization (OLADE) to participate in a panel, “Opportunities for Liquid Biofuels in Latin America and its Role in the Decarbonization of the Transportation Sector,” during the VIII Energy Week event held in Montevideo, Uruguay.
OLADE offers technical assistance and helps ensure cooperation and coordination in promotion and use of Latin America’s energy resources.
“The Council’s participation, along with IICA and the Pan American Coalition for Biofuels, represents an opportunity to provide updated information on the role of biofuels in decarbonizing the transportation sector and illustrating the capability that the Americas, as a region, has to expand the use of biofuels and become a successful case to emulate in the world,” said Juan Diaz, USGC Latin America (LTA) regional ethanol consultant.
The panel featured USGC’s LTA Regional Ethanol Consultant Juan Diaz; Yamila Hana of the National Alcohol and Portland Fuels Administration (ANCAP); Patrick Adam of the Chamber of Corn Ethanol in Argentina (Biomaíz); Julio Minelli of the Brazilian Association of Biofuels Producers (Aprobio); Flavio Castellari of the Brazilian Ethanol Cluster (APLA); and Agustin Torroba of the Inter-American Institute for Cooperation on Agriculture (IICA), who discussed biofuel’s contribution to the decarbonization of the transportation sector. The discussion also highlighted the potential the LTA region has to expand the production and the promotion of biofuels.
The Council shared a timeline of the ethanol industry and how the United States was able to create an industry that is the largest ethanol producer in the world but also one of the most committed industries to reach net zero by 2050. The audience was impressed by the ambitious goals of the U.S. ethanol industry, including the 2030 milestone of ethanol creating a 70 percent carbon reduction compared to gasoline.
“While there has been a lot of attention paid to electro-mobility in the energy transition discussion, the organizations participating in this session elevated the use of biofuels as an alternate solution in determining a pathway to replace fossil fuels with other cleaner sources,” Diaz said.
Read the original story here.
Nov 30, 2023
WASHINGTON, DC –U.S. Representatives Angie Craig and Mariannette Miller-Meeks (R-IA) introduced bipartisan legislation aimed at expanding flex fuel vehicle production in the United States.
The Flex Fuel Fairness Act would incentivize automakers to manufacture flex fuel vehicles – which would provide consumers with more options and support Minnesota’s family farmers and producers.
“Renewable fuels are a solution we can implement to combat climate change right now, and we know that flex fuel vehicles help Minnesotans save money at the pump, support family farmers and producers and help protect the environment. That’s why I introduced this bipartisan bill with my colleague Rep. Miller-Meeks to expand flex-fuel vehicle production – and I’ll keep working to get our bill passed,”said Rep. Craig.
“As we look toward a cleaner energy future with options to lower carbon emissions, it’s imperative to amplify solutions like flex fuel vehicles (FFVs) and ensure that they are included as a low-carbon option,”said Rep. Miller-Meeks.“FFVs provide more options for consumers and the U.S. supply chain and unlock increased use of lower-carbon liquid fuel blends containing higher levels of ethanol, like E30 and E85. I am proud to lead the ‘Flex Fuel Fairness Act of 2023,’ and level the playing field for FFVs as a practical alternative to Electric Vehicles.”
“The Minnesota Bio-Fuels Association applauds Representative Craig for her leadership in introducing the Flex Fuel Fairness Act in the House. To reduce transportation emissions quickly and meaningfully, we need to utilize clean energy vehicle technologies that accelerate the use of higher blends of low-carbon, renewable fuels that are produced here in Minnesota. This bipartisan bill will help unlock the carbon reduction potential of renewable fuels and flex fuel vehicles. We sincerely appreciate Rep. Craig’s work on it,”said Brian Werner, Executive Director of the Minnesota Biofuels Association.
“We thank Reps. Craig, Miller-Meeks, and all the co-sponsors for introducing the Flex Fuel Fairness Act. This bill acknowledges the important emissions benefits of flex fuel vehicles and promotes the continued production of these popular automobiles,”said Renewable Fuels Association President and CEO Geoff Cooper.“This legislation would give automakers more ways to comply with increasingly stringent vehicle emissions standards while providing more clean vehicle options for consumers. By leveling the playing field for all clean vehicle technologies, this bill allows low-carbon liquid fuels like ethanol to work alongside clean electricity, electric vehicles, and other technologies to reduce emissions from transportation.”
Rep. Craig has long advocated for the expansion of biofuel production in Minnesota and across the country. Earlier this year, she was given the National Corn Growers Association’s President’s Award for her work to support ethanol and biofuel producers in Congress.
Full text of the Flex Fuel Fairness Act can be found here.
Read the original press release here.
Nov 29, 2023
The Renewable Fuels Association today thanked Reps. Mariannette Miller-Meeks (R-IA), Angie Craig (D-MN) and all co-sponsors for introducing the Flex Fuel Fairness Act in the House of Representatives to promote the production of more low-carbon flex fuel vehicles in the United States.
“We thank Reps. Miller-Meeks and Craig for introducing the Flex Fuel Fairness Act, which acknowledges the important emissions benefits of flex fuel vehicles and promotes the continued production of these popular automobiles,” said RFA President and CEO Geoff Cooper. “This legislation would provide more clean vehicle options for consumers and give automakers more ways to comply with increasingly stringent vehicle emissions standards. By leveling the playing field for all clean vehicle technologies, this bill allows low-carbon liquid fuels like ethanol to work alongside clean electricity, electric vehicles, and other technologies to reduce emissions from transportation.”
The bill would help to level the playing field for FFVs by properly recognizing the emissions benefits associated with using E85 flex fuels (which contain 51-83 percent ethanol). A Senate version was filed this past summer by Sens. Amy Klobuchar (D-MN) and Pete Ricketts (R-NE).
The legislation is designed to create more equitable incentives and market signals for producing a broader portfolio of clean vehicles. Under current EPA emissions regulations, battery electric vehicles (EVs) benefit from an assumption that there are zero carbon emissions associated with operating the vehicle. EPA announced plans to make the “zero emissions” assumption permanent for EVs in its recent proposed rule for 2027-2032 emissions standards. In essence, EPA’s regulations assume a battery EV will always operate on zero-carbon electricity over its entire lifetime.
To create an equitable incentive for the continued production of FFVs, today’s legislation creates a similar assumption that FFVs always operate on E85—a fuel that reduces lifecycle GHG emissions by 31 percent compared to gasoline. Thus, for the purposes of demonstrating compliance with vehicle emissions standards, the legislation allows automakers to use an emissions value for an FFV that is 31 percent lower than the emissions value for the corresponding non-FFV model.
“If EPA regulations are going to credit EVs for their maximum theoretical carbon emissions benefit, then it stands to reason that the agency should also credit FFVs for their maximum possible carbon emissions benefit,” Cooper said. “This bill would ensure that EPA is being fair and equitable in the way it uses emissions values as policy incentives to stimulate the production of lower-carbon vehicles.”
Even as demand for low-carbon E85 has soared in recent years, the number of new FFV models has decreased significantly in recent years, Cooper said, as previous regulatory incentives for FFV production have been phased out by EPA. For the model year 2023, the only FFVs available to consumers are select Ford F-150 and Transit models. As recently as the model year 2015, more than 80 different FFV models from nine manufacturers were available to consumers. Click here to see a chart of models available as flex fuel.
More than 5,700 gas stations currently offer E85 in the United States, and the fuel typically sells for 20-25 percent less than regular gasoline. Click here for locations and a price tracker.
Read the original story here.
Nov 24, 2023
Ingenza and Phibro Ethanol – a division of Phibro Animal Health Corporation – have joined forces to engineer a novel yeast strain that will increase yield in the commercial production of bioethanol under both challenging and conventional environmental conditions, further driving the switch to clean biofuels. This latest innovation – arising from a productive and long-standing partnership between the two companies – will help to make this valuable natural resource more widely available for processing into sustainable fuels across a range of industries.
In the US, bioethanol is produced by fermenting typically corn-based biomass with yeast. However, large volumes of enzymes, including glucoamylase (GA) must be added to render the glucose in this feedstock available to the yeast. In addition, the elevated temperatures generated in the production vessels can stress the yeast, resulting in reduced fermentation performance and, subsequently, lower ethanol yield.
The successful partnership between Ingenza and Phibro sought to solve this issue, and led to the introduction of KinetX yeast solutions – a highly thermotolerant yeast strain that secretes GA throughout growth and fermentation stages – into the market. The novel strain was obtained using Ingenza’s proprietary strain construction and adaptive laboratory evolution (ALE) platforms. It offers superior robustness and reliability at higher temperatures while greatly reducing GA addition in comparison to traditional yeasts, bringing significant financial benefits to bioethanol producers. Additional next generation yeast lines in the KinetX portfolio will shortly debut on the international market alongside other programmes incorporating other novel technologies to deliver even higher bioethanol yields.
Dr Leonardo Magneschi, Head of Molecular Biology at Ingenza, said: “Increasing the efficiency of bioethanol production is crucial to boost the commercial viability of biofuels as green alternatives to the fossil fuels we currently rely on. We are strongly committed to Phibro’s goals, and we are confident our ongoing collaboration will play a leading role in reducing the carbon footprint of the transportation sector, helping to achieve global sustainability targets.”
Dr Stephanie Gleason, Director of Technology at Phibro, said: “Ingenza’ s expertise in custom-built strain development, ALE, high throughput screening and technology transfer has been key to the successful implementation and scale-up of our industry-leading products. We look forward to working with Ingenza in the future to implement additional innovations that will further support the worldwide transition to environmentally friendly, bio-based fuels.
Read the original story here.
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FEBRUARY
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