In the News

Ethanol Producer Magazine

Dec 15, 2022

CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.”

CoBank predicts that the ethanol industry will benefit from greater usage of E15, growing demand for corn oil, and strong pricing of carbon dioxide. According to the report, carbon dioxide, a coproduct of ethanol production, is experiencing a demand surge from both industrial users and carbon sequestration projects.

The outlook for other types of biofuel is strong as well. CoBank predicts the momentum behind renewable diesel will continue to grow as new soy crush processing and oil refinement facilities come online, supported by the Inflation Reduction Act of 2022.

A full copy of the report can be downloaded from the CoBank  website

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Ethanol Producer Magazine

Dec 8, 2022

The U.S. EPA on Dec. 5 delivered a proposed rule to the White House Office of and Management and Budget related to a petition filed by several Midwest governors seeking a solution to year-round E15 sales in their states. OMB review marks a final step before a proposed rule is released for public comment.

A summary published by the OMB explains that the proposed rule “implements a provision in the Clean Air Act which provides that a governor of a state may request that the 1-psi volatility waiver provided in the statute for gasoline-ethanol blends be removed in the state.” The agency said it has received such a request from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.

Several Midwest governors in April 2022  sent a letter  to EPA Administrator Michael Regan announcing they would seek such a waiver, which would allow E15 to be sold year-round in their states.

Additional information is available on the OMB  website.

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Ethanol Producer Magazine

Dec 7, 2022

U.S. ethanol production was up 6 percent the week ending Dec. 2, according to data released by the U.S. Energy Information Administration on Dec. 7. Weekly ending stocks of fuel ethanol were up 1 percent.

Ethanol production averaged 1.077 million barrels per day the week ending Dec. 2, up 59,000 barrels per day when compared to the 1.018 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Dec. 2 was down 13,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 23.257 million barrels the week ending Dec. 2, up 323,000 barrels when compared to the 22.934 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 2 were up 2.793 million barrels.

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Congresswoman Angie Craig

Dec 8, 2022

WASHINGTON, DC –Yesterday, U.S. Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) introduced the Consumer and Fuel Retailer Choice Act of 2022, bipartisan, bicameral legislation that would enable the year-round, nationwide sale of ethanol blends higher than 10%, helping to lower fuel prices and improve stability and certainty in the U.S. fuel market. This bill is supported by the largest unified group of farming, biofuels and oil companies to date.

Representative Craig’s bill is the House companion to the Senate bill introduced by Senators Amy Klobuchar (D-MN) and Deb Fischer (R-NE) in late November.

“E15 creates opportunities for our family farmers, supports economic growth in rural America and lowers prices at the pump for Minnesotans – and ensuring this cheaper, biofuel alternative is available year-round is a win-win for all those involved in its production,”said Representative Craig.“I’m proud to have worked with Representative Smith on this bill to support our biofuel producers and farmers – and look forward to getting over the finish line.”

“Year-round E15 is a win-win as it boosts American energy independence and ensures greater affordability and opportunity for consumers as well as producers,”said Representative Smith. “E15 benefits the agriculture, energy, and transportation sectors. There’s no reason not to extend to E15 the same regulatory relief currently provided to E10, and I thank Senator Fischer for her leadership on this in the Senate and Rep. Craig for her partnership on our bill in the House.”

TheConsumer and Fuel Retailer Choice Act of 2022 would extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent to allow for the year-round, nationwide sale of E15. In addition, it would ensure consistency across the fuel markets and limit disruptions across the national fuel supply chain by prohibiting the removal of the 1-psi waiver for E10 ethanol.

In the House, theConsumer and Fuel Retailer Actis cosponsored by Representatives Cindy Axne (D-IA), Dusty Johnson (R-SD), Dan Kildee (D-MI), Randy Feenstra (R-IA), Mike Flood (R-NE), James R. Baird (R-IN), Tracey Mann (KS-1), Jim Banks (IN-03), Mary Miller-Meeks (R-IA), Jake LaTurner (R-KS), Michelle Fischbach (MN-07), Ashley Hinson (IA-01),Vicky Hartzler (MO-4), Sam Graves (R-MO), Ken Buck (R-CO), Cheri Bustos (D-IL), Brad Finstad (R-MN), Ron Estes (R-KS), Tim Ryan (D-OH), James Comer (R-KY) and Jason Smith (R-MO). 

The Senate companion to the bill is sponsored by the U.S. Senators Amy Klobuchar (D-IL), Deb Fischer (R-NE), Chuck Grassley (R-IA), Tina Smith (D-MN), John Thune (R-SD), Sherrod Brown (D-OH), Joni Ernst (R-IA), Roger Marshall (R-KS), Dick Durbin (D-IL), Jerry Moran (R-KS), Tammy Baldwin (D-WI), Kevin Cramer (R-ND), Ben Sasse (R-ND) and Mike Rounds (R-SD).

In Congress, Representative Craig has championed the issue of year-round availability of E15. This past year, she pushed the Administration to extend the availability of E15 during the summer to provide American consumers with access to a cheaper biofuel alternative at their local gas station. Additionally, she is also the lead sponsor of the House-passed Year-Round Fuel Choice Act,  which would permanently allow the summer sales of E15.

Read the original press release here

Renewable Fuels Association

Dec 7, 2022

A bill introduced in the Senate to allow nationwide year-round sales of the lower-cost E15 ethanol blend has received the support of more than 250 organizations and companies, including fuel retailers, petroleum refiners, farm groups, ethanol producers, and many others.   In a letter to congressional leadership today,  the entities collaborated to urge the speedy adoption of S. 5145, the Consumer and Fuel Retailer Choice Act of 2022, before this session ends.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” the letter states. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape. In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 continue to resurface every summer.”

“As demonstrated by today’s letter, an increasingly broad and diverse coalition of companies and organizations has rallied together to support the year-round availability of lower-cost, lower-carbon E15,” said Renewable Fuels Association President and CEO Geoff Cooper. “We all agree that the marketplace desperately needs the certainty and stability that this legislation would provide. And by ensuring consumers nationwide have uninterrupted access to E15, this bill would help lower pump prices, enhance our nation’s energy security, and reduce emissions of both greenhouse gases and the pollutants that contribute to air pollution and smog.”

Last month, RFA and the American Petroleum Institute led a broad coalition of energy and agriculture organizations that  called on Congress  in a similar letter to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations.  RFA estimates  that nearly 97 percent of registered vehicles on the road today are legally approved by the U.S. Environmental Protection Agency to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15.

Recent  analyses by RFA  and the  U.S. Energy Information Administration  confirm that expanded use of E15 provided meaningful consumer savings at the pump last summer, as war in Ukraine pushed crude oil and gasoline prices to historic highs. Further, a recent CSP survey found that  one out of every five fuel retailers  plan to add the E15 blend at their locations in the coming year; over 2,800 fuel stations currently carry the blend.

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Ethanol Producer Magazine

Dec 6, 2022

U.S. biofuels operable production capacity increased slightly in September, according to data released by the U.S. Energy Information Administration on Nov. 30. Total feedstock consumption was down when compared to both the previous month and September 2021.

Total biofuels production capacity reached 21.383 billion gallons in September, up 13 MMgy when compared to the 21.37 billion gallons of capacity reported for the previous month, and up 500 MMgy when compared to the 20.883 billion gallons of capacity reported for September 2021.

Ethanol capacity was at 17.165 billion gallons in September, up 13 MMgy when compared to the previous month, but down 243 MMgy when compared to the same month of last year.

Biodiesel capacity was at 2.084 billion gallons in September, flat with the previous month, but down 377 MMgy when compared to September 2021.

Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates was at 2.134 billion gallons in September, unchanged from the previous month but up 1.12 billion gallons when compared to September of last year.  

Total biofuels feedstock consumption fell to 23.958 billion pounds in September, down from both 26.682 billion pounds the previous month, and 24.375 billion pounds in September 2021.

Biofuel producers consumed 21.473 billion pounds of corn in September, down from 24.12 billion pounds in August and 22.799 billion pounds in September 2021. Grain sorghum consumption was at 408 million pounds, down from 446 million pounds the previous month, but up when compared to the 27 million pounds consumed in September of last year.

Approximately 934 million pounds of soybean oil went to biofuels production in September, down from 925 million pounds in August, but up when compared to the 779 million pounds consumed by biofuel producers in September 2021. Biofuel producers also consumed 302 million pounds of corn oil in September, up from 298 million pounds the previous month and 167 million pounds in September of last year. Canola oil consumption was at 131 million pounds, down slightly from 132 million pounds in August, but up from 106 million pounds in September 2021.

Biofuel producers also consumed 438 million pounds of yellow grease, 131 million pounds of beef tallow, 62 million pounds of white grease, and 13 pounds of poultry fat in September. Consumption was at 384 million pounds, 163 million pounds, 64 million pounds and 12 million pounds, respectively, in August, and at 219 million pounds, 134 million pounds, 54 million pounds and 18 million pounds, respectively, in September 2021.

The EIA withheld the volume of other waste oils, fats and greases that went to biofuel production in September to avoid disclosure of individual company data, but reported that 62 million pounds of these feedstocks were consumed in August, along with 5 million pounds in September of last year. An additional 66 million pounds of feedstock classified as “other” was used to produce biofuels in September, compared to 76 million pounds the previous month and 63 million pounds in September 2021.

Additional data is available on the EIA  website.

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Ethanol Producer Magazine

Dec 5, 2022

To reengage with the poultry sector in Egypt, U.S. Grains Council staff in the Middle East, Africa and Europe region traveled to the country in early November to conduct a general trade servicing mission.

While the Council already conducts programs in Egypt dealing with starch and storage, the organization sees the poultry sector as a place for immense growth, which could prove to be a new outlet for U.S. DDGS exporters.

Egypt has been a growing market for distiller’s dried grains with solubles (DDGS) in the past, but sales have since leveled off. The Council sees the broiler industry in Egypt as a space to introduce the commodity, as the country’s broiler sector does not currently use DDGS in its feed.

“The broiler sector is the largest feed sector in Egypt, representing roughly three million metric tons (MMT) of feed in 2021,” said Reece Cannady, USGC assistant regional director for the Middle East and Europe. “At a 10 percent inclusion rate, this is a potential market size of 300,000 MT of DDGS, which, at today’s prices, equates to roughly $100 million.”

While in Egypt, Cannady and Jad Wakileh, USGC consultant in the region, met with many stakeholders across the marketplace, including poultry production companies, grain importers and traders, in addition to visiting wet markets and grocery stores for further education on local supply chains.

“Our engagement in Egypt has been very intense and long-standing,” Cannady said. “The Council has been actively engaged in helping fix the misperception of U.S. corn quality in Egypt, and that hard work is paying off; now it’s time to move the needle for DDGS exports to the country.”

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Reuters

Nov 30, 2022

NEW YORK, Nov 29 (Reuters) - U.S. senators from Nebraska and Minnesota introduced legislation on Tuesday that would expand nationwide sales of E15, a gasoline with a higher blend of ethanol, after gaining support for the bill from an oil industry trade group for the first time, Senator Deb Fischer from Nebraska told Reuters.

The legislation, introduced by Fischer and Senator Amy Klobuchar from Minnesota and supported by the American Petroleum Institute (API), would mark a huge win for the ethanol industry and corn farmers who have repeatedly tried to expand sales of E15 but have faced hurdles.

While it is unknown if the bill has the support it needs to pass both the House and Senate to become law, the backing of the oil industry has lifted a notable political obstacle.

U.S. Environmental Protection Agency (EPA) anti-smog regulations currently restrict summertime sales of E15, even though research has shown the higher percentage blend may not increase smog relative to the 10% blend called E10 that is now sold year-round.

Reuters reported this month that the API began cooperating with biofuel industry groups about legislation after governors from major corn-producing Midwestern states earlier this year requested the EPA allow for expanded sales of E15 in their own states. The governors' proposal raised oil industry concerns about fuel regulations differing from state to state.

"We have good support," Fischer told Reuters. "When you look at the impact it'll have, especially on the central part of the United States, the Midwest and part of the south, I think that's extremely important."

Fischer and Klobuchar's legislation, if passed, would nullify the governors' request and avoid patchwork E15 expansion, Fischer said.

"By allowing for the year-round sale of E15 nationwide while also preserving access to lower ethanol gasoline blends, this bipartisan legislation strengthens the reliability of the fuel supply chain and ensures American consumers have access to the fuels they depend on every day," said Will Hupman, API's vice president of downstream policy.

The legislation also has the support of Senator Kevin Cramer from North Dakota, a co-sponsor of the bill. Cramer's support is significant, as North Dakota is one of the top oil-producing states, Fischer said.

Organizations including the API, the Renewable Fuels Association (RFA) and the National Farmers Union wrote to congressional leaders this month to urge them to adopt legislation to expand nationwide E15 sales. 

"We thank Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which brings much-needed consistency and stability to the marketplace," said RFA President Geoff Cooper, after Tuesday's legislation announcement.

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