In the News

Ethanol Producer Magazine

Aug 26, 2022

The U.S. Grains Council’s Southeast Asia and Oceania (SEA&O) office recently participated in the Clean EDGE Asia business mission, a clean and renewable energy-focused trade mission organized by the U.S. Department of Commerce. The mission aimed to increase U.S. exports of products and services to the Indo-Pacific region to strengthen energy security, enhance energy access, promote open and efficient energy markets and advance clean energy and climate goals in Southeast Asia.

The trade mission made stops in Indonesia, Vietnam and the Philippines – three key markets for USGC’s ethanol-focused programming – where delegates met with government and industry stakeholders in the clean and renewable energy sector. Council representatives were joined by ethanol industry partner Growth Energy for the duration of the trade mission.

“Clean EDGE was an opportune time to further convey to stakeholders around the region the environmental benefits of fuel ethanol and underscore its readiness as a tool to mitigate emissions from the transport sector immediately,” said Caleb Wurth, USGC SEA&O regional director.

“The mission also provided us an opportunity to strengthen alignment with the U.S. Department of Commerce as the department and its sister agencies implement the clean energy pillars of the Indo-Pacific Economic Framework (IPEF). The Council sees IPEF as an additional strategic tool to promote ethanol use across Southeast Asia.”

The three countries visited are the highest priority markets for USGC ethanol programming in Southeast Asia given their consumption volumes and appetite to mitigate emissions from the transport sector.

The Philippines currently consumes more than 1.5 billion gallons of gasoline per year and is a regional leader in fuel ethanol use, having maintained an E10 mandate since 2011. U.S. ethanol currently supplies roughly 40 percent of the country’s annual ethanol demand of about 170 million gallons per year. Regulators are now evaluating an expansion of the E10 mandate to an E15 or E20 discretionary ceiling in a bid to further mitigate transport emissions and create more space for retailers to generate savings for consumers.

Indonesia, the fourth most populous country in the world, consumes around 10 billion gallons of gasoline per year and is primed to become one of the largest gasoline markets in the world based on its current growth rate. The Council is working with stakeholders to implement a new E5 pilot project in major metropolitan areas that requires some 6.6 million gallons of ethanol. This is in addition to the three percent ethanol allowance in imported gasoline being maximized due to the Council’s work to remove a ban on ethanol in Indonesia’s fuel specification.

Vietnam consumes close to 3 billion gallons of gasoline each year, with demand forecasted to grow at a double-digit rate over the next five years. U.S. fuel ethanol, which supplies a significant portion of existing demand in Vietnam, can further support this growth by helping the country meet commitments to emissions reduction and reduce fuel costs for its growing middle class. Presently, regulators are evaluating the expansion of country’s E5 RON 92 mandate.

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Ethanol Producer Magazine

Aug 24, 2022

U.S. fuel ethanol production capacity was up slightly the week ending Aug. 19, according to data released by the U.S. Energy Information Administration on Aug. 24. Stocks of fuel ethanol were up nearly 2 percent.

Fuel ethanol production averaged 987,000 barrels per day the week ending Aug. 19, up 4,000 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 Aug. 19 was up 54,000 barrels per day.

Stocks of fuel ethanol expanded to 23.807 million barrels the week ending Aug. 19, up 361,000 barrels when compared to the 23.446 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Aug. 19 were up 2.584 million barrels.

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Ethanol Producer Magazine

Aug 23, 2022

As of January 1, 2022, biofuel plant production capacity in the United States reached 21 billion gallons per year (gal/y) from 275 facilities. More than four-fifths of U.S. biofuel production capacity was for fuel ethanol.

Of the 13 states with the most fuel ethanol production capacity, 12 are located in the Midwest. The three states with the most production capacity—Iowa, Nebraska, and Illinois—contain half of the nation’s total ethanol production capacity. As of January 1, 2022, U.S. fuel ethanol production capacity totaled 17.4 billion gal/y, as reported by 192 producers, a 0.2 billion gal/y decrease since the beginning of 2021.

Producers of another biofuel, biodiesel, operate 72 plants nationwide. In January 2022, U.S. biodiesel production capacity totaled 2.3 billion gal/y, a 0.2 billion gal/y decrease from January 2021. More than half of U.S. biodiesel production capacity is in the Midwest, primarily in Iowa, Missouri, and Illinois. The remainder is mostly located on the Gulf and West Coasts.

In another, much smaller, category of biofuels production, 11 renewable fuel producers were operating in the United States as of January 1, 2022. The facilities produce renewable diesel fuel, renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline, and other biofuels and bio intermediate products. Their combined production capacity totals 1.8 billion gal/y, more than double what it was at the beginning of 2021.

Fuel ethanol producers accounted for 81 percent of U.S. total biofuels production capacity, followed by biodiesel producers at 11 percent, and by renewable diesel fuel and other biofuels producers at 8 percent. On August 8, we released our three annual plant production capacity reports:  2022 Fuel Ethanol Production Capacity,  2022 Biodiesel Plant Production Capacity,  and  2022 Renewable Diesel Fuel and Other Biofuels Plant Production Capacity.  Respondents report biofuels production capacity data in these publications. The three annual reports contain our most up-to-date estimates of the plant production capacity for the U.S. biofuels industry. The reports include biofuels production capacity for operating plants as of January 1, 2022. The names of the reporting plants are organized by state and region.

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Ethanol Producer Magazine

Aug 22, 2022

The USDA is scheduled to open a new $100 million, 90-day application window for the Higher Blends Infrastructure Incentive Program on Aug. 23, according to a document published in the Federal Register on Aug. 22.

The HBIIP is a competitive grant program that aims to significantly increase the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. Investments made under HBIIP aim to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure. Under the program, higher blends include ethanol blends of greater than 10 percent and biodiesel blends of greater than 5 percent.

Grants made under the program can cover up to 50 percent of total eligible project costs, up to $5 million. According to the notice, the USDA has set a targeted assistance goal that aims to make approximately 40 percent of funds available to applicants that own 10 or fewer fueling stations/locations. The USDA may also target applicants located in markets that are currently underserved by higher blends and give preference to first time applicants to the HBIIP program, according to the notice.

The USDA has already made three rounds of awards through the HBIIP. The agency awarded $22 million  under the program to 40 recipients in 14 states in October 2020,  $18.4 million to 23 recipients  in 20 states in April 2021, and  $26 million to support 34 projects  located in 23 states in August 2021.

A full copy of the notice can be downloaded from the USDA  website.

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KS95atHolidayOldHudsonRdAug2022

Minneapolis, Aug 19 - The Minnesota Bio-Fuels Association (MN Bio-Fuels) and KS95 FM rewarded drivers who chose E15 during an hour-long promotion at the Holiday station on Old Hudson Road in St Paul earlier today.

The promotion was held from 12 pm to 1 pm. Drivers who fueled up with E15 during the promotion won prizes such as $20 in cash, tickets to Minnesota United, tickets to the St Paul Saints, gift cards to Applebee’s and KS95 merchandise.

MN Bio-Fuels staff and KS95’s personality, Greg “Hutch” Hutchinson were at the station during the promotion to educate drivers on the benefits of fueling up with E15. 

“More and more Minnesotans are choosing E15. In the first six months of this year, 47.16 million gallons of E15 was sold in Minnesota, 17 percent higher than the volume sold over the same period in 2021,” said Brian Kletscher, president of MN Bio-Fuels.

Today’s event was the 10th time MN Bio-Fuels and KS95 FM have teamed up this year at a gas station in the Twin Cities metro to promote E15. 

Ethanol Producer Magazine

Aug 16, 2022

President Joe Biden on Aug. 16 signed the Inflation Reduction Act into law, calling the legislation the “biggest step forward in climate—ever” and stressing it will allow the U.S. to boldly take addition steps towards meeting its climate goals.  

The expansive legislative package addresses a wide range of issues, including inflation reduction, domestic energy production and manufacturing, carbon emissions reductions, Medicare and health care costs, and tax loopholes.

Of interest to the biofuel and bioenergy industries, the newly signed law establishes new tax credits for sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen. It also extends several existing tax credits that benefit transportation biofuels, such as renewable diesel and biodiesel, and includes funding for biofuel infrastructure development. Other provisions of the bill support the production of biogas- and biomass-based electricity and offer tax incentives for homeowners to install biomass-fired residential heating appliances. The bill also extends and expands the Section 45Q tax credit for carbon capture and storage (CCS).

The new SAF tax credit starts at $1.25 per gallon for SAF that achieves a 50 percent greenhouse gas (GHG) reduction when compared to a baseline fossil fuel. An additional 1 cent per gallon is available for each percentage point by which the lifecycle GHG emission reduction of the fuel exceeds 50 percent. The tax credit is capped at $1.75 per gallon. The new also establishes a competitive grant program in support of alternative aviation fuels and low-emission aviation technologies. In part, the program would provide grants to eligible entities to carry out projects located in the U.S. that produce, transport, blend or store SAF. Nearly $250 million in funding would be available to support SAF projects under the program.

The newly established Clean Fuel Production Tax Credit is a technology-neutral tax credit that aims to support the production of low-emissions transportation fuel. It will apply to transportation fuel produced and sold in 2025, 2026 and 2027. To qualify, the fuel will have to achieve a GHG reduction of approximately 40 percent when compared to diesel and meet other requirements.

The new law also establishes a Section 45V production tax credit (PTC) for clean hydrogen produced at qualified facilities that begin construction before the end of 2032. The credit will apply to hydrogen produced after the end of 2022. Depending on the specific project, the credit could range from 12 cents per kilogram to $3 per kilogram, according to the bill text.

The Inflation Reduction Act also extends several existing bioenergy and biofuel tax credits. The $1 per gallon blends tax credit for biodiesel and renewable diesel is extended through the end of 2024. It also extends the 50-cent per gallon alternative fuels tax credit, the second-generation biofuel income tax credit, and the alternative fuel vehicle refueling property credit.

In addition, it appropriates $500 million to support the development of biofuel infrastructure, including infrastructure improvements for blending, storing, supplying or distributing biofuels; installing, retrofitting or upgrading fuel dispensers to supply higher blends of biofuels; and for building and retrofitting home heating oil distribution centers to supply biofuels. The new law also includes an estimated $18 billion in support of climate-smart agriculture, which will benefit biofuel producers through the production of lower-carbon feedstocks.

For renewable electricity, the Inflation Reduction At extends the Section 45 production tax credit (PTC), which benefits qualified biogas, open-loop biomass and closed-loop biomass facilities, to qualified facilities that begin construction before Jan. 1, 2025. For home heating, the it extends and modifies of the Section 25 tax credit, which, in part, supports the installation residential biomass-fired stove and boilers. The tax credit for these residential appliances is capped at $2,000.

The Inflation Reduction Act supports CCS projects through an extension and modification of the Section 45Q tax credit. It extends the Section 45Q tax credit to any carbon capture, direct air capture or carbon utilization project that begins construction before Jan. 1, 2033. It also increases the value of the credit for industrial facilities and power plants that capture their carbon emissions to $85 per metric ton of CO2 stored in secure geologic formations, $60 per ton for the beneficial utilization of captured carbon emissions, and $60 per ton for CO2 stored in oil and gas fields. For direct air capture technologies, the credit is increased to $180 per metric ton for projects that store captured CO2 in secure geologic formations, $130 per ton for carbon utilization, and $130 per ton for CO2 stored in oil and gas fields.

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Ethanol Producer Magazine

Aug 9, 2022

The U.S. Energy Information Administration maintained its forecasts for 2022 and 2023 fuel ethanol production in its latest Short-Term Energy Outlook, released Aug. 9. The agency also maintained its forecast for 2022 and 2023 ethanol consumption.

The EIA currently predicts U.S. fuel ethanol production will average 1.02 million barrels per day this year, falling to 1 million barrels per day next year. Production averaged 980,000 barrels per day in 2021.

On a quarterly basis, ethanol production is expected to average 1.01 million barrels per day during the third quarter of this year, expanding to 1.02 million barrels per day during the fourth quarter. Moving into 2023, ethanol production is expected to average 990,000 barrels per day in the first quarter, 1 million barrels per day in the second quarter, 990,000 barrels per day in the third quarter, and 1.02 million barrels per day in the fourth quarter.

The EIA currently predicts ethanol blending will average 910,000 per day in 2022 and 920,000 barrels per day in 2023. Ethanol blending averaged 910,000 barrels per day last year.

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Ethanol Producer Magazine

Aug 4, 2022

The U.S. exported 101.48 million gallons of ethanol and 1.01 million metric tons of distillers grains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 4. Exports of both products were up when compared to June 2021.

The 101.48 million gallons of ethanol exported in June was down when compared to the 147.06 million gallons exported in May, which was a four-year high, but up from the 82.09 million gallons exported during the same month of last year.

The U.S. exported ethanol to more than 30 countries in June. Canada was the top destination for U.S. ethanol at 41.2 million gallons, followed by South Korea at 13.64 million gallons and the UK at 12.02 million gallons.

The value of U.S. ethanol exports was at $324.77 million in May, down from $410.39 million the previous month, but up from $187 million in June 2021.

Total U.S. ethanol exports for the first half of 2022 reached 827.39 million gallons at a value of $2.25 billion, compared to 662.62 million gallons exported during the same period of 2021 at a value of $1.27 billion.

The 1.01 million metric tons of distillers grains exported in June was up from both 966,108 metric tons in May and 938,280 metric tons in June 2021.

The U.S. exported distillers grains to approximately three dozen countries in June. Vietnam was the top destination at 197,192 metric tons, followed by Mexico at 158,501 metric tons and Turkey at 109,819 metric tons.

The value of U.S. distillers grains exports was at $311.08 million in June, down slightly from $311.85 million the previous month but up from $248.47 million in June of last year.

Total U.S. distillers grains exports for the first six months of the year reached 5.67 million metric tons at a value of $1.67 billion, compared to 5.4 million metric tons exported during the same period of last year at a value of $1.42 billion.

Additional data is available on the USDA FAS website

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