In the News

Ethanol Producer Magazine

Jun 6, 2023

The USDA on May 31 released its latest quarterly outlook for U.S. agricultural trade, reporting that the agency’s forecast for fiscal year (FY) 2023 ethanol exports remains unchanged at $3.6 billion. That forecast is down 11 percent when compared to last year’s record value of $4.05 billion, but is still the second highest on record, according to the agency.

In the report, the USDA said historically high export unit value for ethanol is supported by persistently elevated corn and gasoline prices. Export volumes are forecasted one-quarter below the 2018 record of 1.6 billion gallons.

According to the USDA, U.S. ethanol exports to South Korea, the European Union, India, Mexico, Nigeria and nearly all key markets are expected to falter due to inflation and cost-of-living squeeze, which lowers demand for ethanol used in nonfuel applications. The agency also notes that competitive pricing from Brazil in previous months undercut U.S. sales to several markets and sales to Brazil remain minimal.

The report indicates that Canada remains the current bright spot for U.S. ethanol exports, primarily due to higher fuel blending in Ontario. Sales volumes to Canada for the first six months of the fiscal year were up 35 percent, pushing its share of U.S. ethanol exports to 40 percent.

The value of ethanol exports for October-March FY 2022 was just over $2 billion, compared to approximately $1.67 billion during the same six-month period of FY 2023.

A full copy of the quarterly report is available on the USDA website

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US Grains Council

Jun 1, 2023

The U.S. Grains Council's (USGC's) bioethanol team traveled to the European Union (EU) last week to meet with government and industry officials and host a panel at the International Transport Forum's 2023 Summit. Pictured from left to right are Isabelle Ausdal, USGC manager of global ethanol policy and economics; Josh Shields, senior vice president of government affairs and communications at POET; Mackenzie Boubin, USGC director of global ethanol export development; Michael Berube, deputy assistant secretary for sustainable transportation for the U.S. Department of Energy (DOE); Carlos Monje, undersecretary for transportation policy for the U.S. Department of Transportation (DOT); Lane Howard, associate director of market development for Missouri Corn; Elizabeth Burns-Thompson, vice president of government and public affairs at Navigator CO2; Dr. BJ Johnson, CEO and co-founder of ClearFlame Engine Technologies; and Matt Lambert, a producer representing the Missouri Corn Merchandising Council.

Last week, the Council’s bioethanol team hosted a mission to Brussels, Belgium, and then traveled from there to Leipzig, Germany, for the International Transport Forum’s (ITF) 2023 Summit, where the Council was a sponsor. Fueled by price competitiveness and increasing renewable energy targets, the European Union (EU) was the third-largest market for U.S. bioethanol in 2021/22, at nearly 140 million gallons, valued at over $350 million.

In Brussels, the delegation met with several government and industry officials, including the Belgian Minister of Economy and the Slovakian Energy Attaché to the EU, and Carbon Capture and Storage (CCS) Europe, an advocacy and communications body supported by technology providers, project developers, members of industry and environmental NGOs, who share a commitment to achieve significant reductions in CO2 emissions.

“While engagement with member states remains crucial to our efforts for EU bioethanol consumption, many of the opportunities or barriers to further policy demand remain within the European Commission. Time spent discussing, educating and exploring viable pathways for increased bioethanol use provides a well-rounded approach to our regional EU efforts,” said Mackenzie Boubin, USGC director of global ethanol export development.

Once in Leipzig, the group hosted a special side panel, Bioethanol: Fueling Forward to Net-Zero, at ITF, welcoming global attendees who heard from U.S. industry representatives on the benefits of using ethanol in their own countries. Panel participants included Elizabeth Burns-Thompson, vice president of government and public affairs at Navigator CO2; Dr. BJ Johnson, CEO and co-founder of ClearFlame Engine Technologies; Matt Lambert, a producer representing the Missouri Corn Merchandising Council; and Josh Shields, senior vice president of government affairs and communications at POET.

“The high-level ITF Summit gathers government transport ministries and transportation stakeholders around the world to collaborate on decarbonization strategies. The Council knows that biofuels must be included in these discussions as a viable right-here, right-now GHG mitigation tool for the decarbonization of road transportation alongside electrification and energy efficiency and its important role in the net-zero economy,” Boubin said.

“In the new age of sustainability and global decarbonization, bioethanol is a pivotal tool in the international transport agenda and key policymakers should strive to secure the right incentives to increase the uptake of bioethanol for the decarbonization of transport.”

Outside the panel, the group had opportunities to network with those in the global transportation sector and listen in to a ministerial session on boosting sustainable economies through greening transport.

The Council looks forward to further programming in the EU as the longer-term goal is to utilize E10 across all member states and permit full access for bioethanol in its policy revisions based on its science-based carbon reduction benefits.

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Ethanol Producer Magazine

Jun 1, 2023

U.S. fuel ethanol production was up 2 percent the week ending May 26, according to data released by the U.S. Energy Information Administration on June 1. Weekly ending stocks of fuel ethanol were up 1 percent. The agency also released weekly ethanol export data for the first time.

Fuel ethanol production averaged 1.004 million barrels per day the week ending May 26, up 21,000 barrels per day when compared to the 983,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending May 26 was down 67,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 22.332 million barrels, up 291,000 barrels when compared to the 22.041 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending May 26 were down 629,000 barrels.

According to the EIA, the U.S. exported approximately 54,000 barrels (2.27 million gallons) per day of ethanol the week ending May 26. No ethanol imports were reported for the week.

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Whitefox Technologies

May 31, 2023

Whitefox Technologies is pleased to announce that The Andersons, Inc. has successfully installed the Whitefox ICE® membrane dehydration system at its ethanol plant located in Denison, Iowa. This is Whitefox’s eleventh installation in the U.S., and its fourth installation in Iowa. 

Bill Krueger, Chief Operating Officer and President of The Andersons Trade and Processing, states “We have been evaluating Whitefox technology for some time, and saw that the system aligned with our goals for upgrading the Denison plant which include lower steam use and energy cost per gallon. It also helps to drive our objective of reducing carbon intensity across our production facilities. I am excited that this project is now completed as it addresses several of our strategic priorities.”

The Whitefox ICE® system treats existing recycling streams to both free up and debottleneck distillation-dehydration capacity, enabling The Andersons and other producers to lower natural gas usage, cut carbon emissions, improve plant cooling, and increase potential production capacity depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint.

Malcolm Rock, Whitefox COO, commented that “the goal of this installation is to decrease carbon emissions by reducing steam consumption per gallon of ethanol produced. Our process engineers have designed a tailored solution which fits the distinctive features of the Denison plant integrating heat where possible. Together with The Andersons, I am pleased to see the final stages of the project coming together. It has been a real pleasure to work with Bill Krueger, and the team at the Denison plant.”

ABOUT THE ANDERSONS INC.

The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture, conducting business in the commodity merchandising, renewables, and nutrient and industrial sectors. Investment in ethanol is a natural extension of The Andersons core business competencies in grain operations, corn originations, and commodity merchandising. In addition to being a significant investor in The Andersons Marathon Holdings LLC, they also manage the operations of their ethanol plants located in Albion, Michigan; Logansport, Indiana; Greenville, Ohio; and Denison, Iowa. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit  www.andersonsinc.com.

ABOUT WHITEFOX TECHNOLOGIES LIMITED

 Whitefox specializes in technology development and process integration based on its proprietary membrane solutions. Whitefox ICE® (Integrated Cartridge Efficiency) is a bolt-on solution developed for the ethanol industry. With a small footprint, it is designed to de-bottleneck distillation and dehydration, which boosts output, improves CI scores by reducing energy and water consumption and reduces operation & maintenance costs by simplifying operations Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.  www.whitefox.com

Read the original press release here.

Ethanol Producer Magazine

May 30, 2023

The USDA recently released its Grain Crushings and Co-Products Production Report for May, reporting that corn use for fuel ethanol production in March was up when compared to the previous month, but down from March 2022.

Total corn consumed for alcohol and other uses was 490 million bushels in March, up 11 percent from the previous month, but down 4 percent from March 2022. Usage included 91.7 percent for alcohol and 8.3 percent for other purposes.

Corn use for fuel alcohol in March was at 438 million bushels, up 10 percent from February, but down 3 percent when compared to same month of the previous year. Corn consumed for dry milling fuel production and wet milling fuel production was at 91.5 percent and 8.5 percent, respectively.

The USDA withheld the volume of sorghum consumed for fuel alcohol production in March to avoid disclosure of individual company data.

At dry mills, condensed distillers solubles production was at 81,415 tons, up from 77,506 tons in February, but down from 103,439 tons in March 2022. Corn oil production reached 177,081 tons, up from both 160,215 tons the previous month and 174,657 tons in March of last year. Distillers dried grains production expanded to 387,438 tons, up from both 338,869 tons in February and 372,813 tons in March 2022. Distillers dried grains with solubles production was at 1.7 million tons, up from 1.56 million tons the previous month, but down from 1.88 million tons in March of the previous year. Distillers wet grains production was at 1.3 million tons, up from 1.16 million tons in February, but down from 1.38 million tons in March of last year. Modified distillers wet grains production was at 505,767 tons, up from 466,269 tons the previous month, but down from 562,599 tons in March 2022.

At wet mills, corn germ meal production was at 48,872 tons, up from 44,421 tons in February, but down from 61,909 tons in March of the previous year. Corn gluten feed production reached 2932,483 tons, up from both 247,817 tons the previous month and 25,258 tons in March 2022. Corn gluten meal production reached 117,550 tons, up from both 108,496 tons in February and 109,130 tons in March 2022. Wet corn gluten feed production was at 187,120 tons, up from 185,051 tons the previous month, but down from 226,860 tons during the same month of last year.

At wet and dry mills, carbon dioxide captured was at 214,548 tons, up from 195,862 tons in February, but down from 249,346 tons in March 2022.

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Ethanol Producer Magazine

May 24, 2023

By Growth Energy

With drivers expected to hit the roads in near pre-pandemic numbers this Memorial Day weekend, Growth Energy—the nation’s largest biofuels trade association—urged travelers to fill up with Unleaded 88 (UNL88), a fuel blend with 15 percent ethanol, to save money at the pump and reduce their emissions over the holiday.

Memorial Day weekend travel is expected to increase by around 7 percent over last year with nearly 90 percent of that travel taking place on the roads,  according to AAA,  signaling a strong start to summer travel season.

With travel on the rise, consumers looking to save money on fuel should look at UNL88, also known as E15. In total, UNL88 has the potential to save drivers more than a combined $12 million just this weekend. That means more money in consumers’ pockets that they can spend on cookout supplies, fireworks, or maybe just a longer vacation.

Last summer, when the national average for a gallon of gas was more than $4, drivers were able to save 16-cents per gallon on average by using UNL88. UNL88 can also be  used in 96 percent of vehicles  on the road today and contributes to cleaner air, reducing smog-forming pollutants and lowering emissions of particulate matter up to 50 percent compared to gasoline.

“UNL88 makes it easy for drivers to save money at the pump and reduce their carbon emissions all in one step,” said Growth Energy CEO Emily Skor. “As the summer travel season officially begins, we hope all consumers take advantage of the cost savings and environmental benefits of filling up their cars and trucks with fuel that’s at least 15 percent ethanol.”

“Not many products exist in the fuel market today that allow drivers to both save money and lower their carbon emissions at the same time,” said Jennifer Forbess, Fuel Supply and Trading Manager at Midwest fuel retailer Kwik Trip Inc. “That’s what makes UNL88 such a popular, high-value fuel, and we hope our customers take advantage of this more affordable, lower-carbon product as they hit the road this holiday weekend.”

Travelers can plan their road-trip and locate gas stations selling E15 and other ethanol blends using  Get Biofuel Fuel Finder.  To date, Americans have driven approximately 75 billion miles on UNL 88. Since 2018 the number of miles has increased by an astounding 543 percent, according to Growth Energy calculations.

The U.S. Environmental Protection Agency (EPA) recently took an important step to  allow continued sales of UNL88 (E15)  throughout this summer and has proposed allowing year-round sales in eight Midwestern states beginning next year. Growth Energy and its member companies have urged the EPA to allow year-round sales of UNL88 to provide continued cost savings, increased energy independence, support for rural jobs, and immediate emissions reductions from automotive travel.

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US Grains Council

May 17, 2023

Using Market Access Program (MAP) and Agricultural Trade Promotion (ATP) funds, the U.S. Grains Council Mexico office has been conducting some grassroots market development work for U.S. DDGS to small-scale ruminant producers in Southeast Mexico. The Council started working in this region in 2015, showing to cattle producers how they could supplement their grass-fed cattle with U.S. DDGS and achieve faster growth rates and earlier-to-market cattle.

Some examples of the Council’s outreach efforts over the past seven years include:

  • Feeding trials with small cattle producers demonstrating the improved animal performance and profitability using DDGS.
  • Seminars with cattle associations to promote the trials and provide support to small farmers who do not get regular extension support.
  • Partnering with local associations in Chiapas, which completed the construction of its warehouse to store and commercialize grains and DDGS for cattle ranchers from 14 local associations.
  • Arranging the inauguration of the grain warehouse in Arriaga. This warehouse helps to increase the consumption of DDGS on the Chiapas coast since they are going to sell DDGS in 40-kilo bags for smaller clients.
  • Signing MOUs with partner companies who will act as intermediaries in the distribution of U.S. DDGS to smaller cattle producers in the region.

Total DDGS sales in this region reached 300,000 MT through the ports of Southeast Mexico, an increase of 100 percent from when the Council started the program in 2015 when sales were only 145,000 MT. The value of these exports has increased from $44 million annually to $89 million in 2022, an increase of $45 million annually due to the Council’s long-term promotion efforts.

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Ethanol Producer Magazine

The U.S. Energy Information Administration maintained its forecasts for 2023 and 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released May 9. The forecast for 2024 fuel ethanol blending was raised.

The EIA currently predicts fuel ethanol production will average 1 million barrels per day this year, increasing to 1.01 million barrels per day next year. Both forecasts were maintained from the April STEO. Fuel ethanol production averaged 1 million barrels per day in 2022.

On a quarterly basis, the agency predicts fuel ethanol production will average 1 million barrels per day during the second quarter of this year, falling to 990,000 barrels per day during the third and fourth quarters. Moving into 2024, ethanol production is currently expected to average 1.01 million barrels per day in the first and second quarters, falling to 1 million barrels per day in the third quarter and increasing to 1.03 million barrels per day in the final quarter of the year.

The EIA maintained its forecast for 2023 fuel ethanol blending at 930,000 barrels per day. The 2024 ethanol blending forecast was increased to 940,000 barrels per day, up from 930,000 barrels per day as predicted last month. Fuel ethanol blending averaged 910,000 barrels per day in 2022.

Read the original story here.