In the News

Ethanol Producer Magazine

Jul 12, 2022

The USDA maintained its forecast for 2022-’23 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released July 12. The 2022-’23 corn outlook is for increased supplies and higher ending stocks.

The USDA beginning stocks are raised 25 million bushels, to 1.51 billion bushels, based on reduced feed and residual use for 2021-’22 as indicated in the agency’s June 30 Grain Stocks report. Corn production for 2022-’23 is forecast 45 million bushels higher, at 14.505 billion bushels, based on greater planted and harvested area from the June 30 Acreage report. Projected yield is unchanged at 177 bushels per acre.

The USDA maintained its June forecast that 5.375 billion bushels of corn will go to ethanol production in 2022-’23, flat with 2022-’21. Approximately 5.033 billion bushels of corn went to ethanol production in 2020-’21. The USDA also maintained its June forecasts for feed and residual use, along with food, seed and industrial use.

With no use changes, ending stocks are up 70 million bushels, to 1.47 billion bushels. The season-average farm price received by producers is lowered 10 cents to $6.65 per bushel.

The USDA’s forecast for foreign corn production is down, with reductions for Russia, the European Union and Kenya, partially offset by an increase for Paraguay. Russia corn production is lowered reflecting a cut in area. EU corn production is reduced with a forecast decline for Italy. For 2021-’22, corn production is raised for Paraguay with increases to both area and yield.

Major global trade changes for 2022-’23 include larger corn exports for Paraguay with a reduction for Russia. Corn imports are raised for Zimbabwe. Foreign corn ending stocks are up marginally relative to last month. Global corn stocks, at 313 million tons, are up 2.5 million tons relative to last month.

Read the original story here

Southeast AgNet

Jul 11, 2022

The ethanol industry is hopeful of a final win soon on a permanent fix for restricted summertime E15 sales. The House has already acted as part of a package of livestock competition bills to permanently allow summertime E15 sales that received a Biden waiver just for this summer.

Now, Renewable Fuels Association  chief Geoff Cooper says it’s up to the Senate to act.

“We are expecting that the Senate is going to give those provisions a very hard look if they decide to try to do something before the August recess,” he said.  

The Senate Ag Committee last month advanced two cattle market reform bills, including Senator Chuck Grassley’s Cattle Price Discovery and Transparency Act.

“So, it could fold very well into any package he and his colleagues might be considering. That includes some of the meatpacking provisions and other things that he’s been focused on,” Cooper said.

As for E15’s chances after seven Midwest Republicans broke ranks and backed the House bill.

“We would expect the same thing to happen in the Senate. In fact, there’s probably more bipartisan interest in the Senate around the provisions that were in that bill that slipped through the House,” he said.

And ahead of the November elections, both parties will be looking for anything they can point to as possibly reducing near-record gas prices.

Read the original story here

Ethanol Producer Magazine

Jul 7, 2022

The U.S. exported 147.06 million gallons of ethanol and 966,108 metric tons of distillers grains in May, according to data released by the USDA Foreign Agricultural Service on July 7. Exports of ethanol were up when compared to May 2021, while distillers grains exports were down.

The 147.06 million gallons of ethanol exported in May was down when compared to the 185.19 million gallons exported in April, which was the highest reported monthly export level in four years. May exports, however, were more than double the 70.39 million gallons reported for the same month of last year.

The U.S. exported ethanol to more than 40 countries in May. Canada was the top destination at 41.8 million gallons, followed by South Korea at 19.33 million gallons and the Netherlands at 15.41 million gallons.

The value of U.S. ethanol exports reached $410.39 million in May, down from $496.02 million the previous month, but up from $159.32 million in May 2021.

The U.S. exported a total of 725.91 million gallons of ethanol during the first five months of 2022 at a value of $1.93 billion, compared to 582.36 million gallons exported during the same period of last year at a value of $1.06 billion.

The 966,108 metric tons of distillers grains exported in May was up when compared to the 813,749 metric tons exported in April, but down from 1.04 million metric tons exported in May 2021.

The U.S. exported distillers grains to approximately three dozen countries in May. Mexico was the top destination for U.S. distillers grains exports at 229,231 metric tons, followed by South Korea at 123,077 metric tons and Vietnam at 111,080 metric tons.

The value of U.S. distillers grains exports reached $311.85 million in May, up from both $243.12 million in April and $286.58 in May of last year.

Total U.S. distillers grains exports for the first five months of the year reached 4.66 million metric tons at a value of $1.36 billion, compared to 4.49 million metric tons exported during the same period of 2021 at a value of $1.18 billion.

Additional data is available on the USDA FAS website

Read the original story here

Ethanol Producer Magazine

Jul 6, 2022

U.S. operable production capacity for ethanol and renewable diesel expanded in April, while biodiesel capacity fell slightly, according to data released by the U.S. Energy Information Administration on July 5. Feedstock consumption was up when compared to April 2021.

Total capacity for ethanol, biodiesel, renewable diesel and other fuels, defined to include renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline, and other biofuels and biointermediates, reached 21.479 billion gallons in April, up from both 21.022 billion gallons the previous month and 20.777 billion gallons in April 2021.

Ethanol capacity was at 17.34 billion gallons in April, up 17 MMgy when compared to the 17.323 billion gallons of capacity reported for March. Ethanol capacity, however, was down 56 MMgy when compared to the 17.396 billion gallons of capacity in place during the same month of last year.

Biodiesel capacity fell to 2.217 billion gallons in April, down 14 MMgy when compared to the 2.231 billion gallons of capacity reported for March. When compared to the 2.41 billion gallons of capacity in place in April 2021, biodiesel capacity was down 193 MMgy.

Capacity for renewable diesel and associated fuels expanded to 1.922 billion gallons in April, up 454 MMgy when compared to the 1.468 billion gallons of capacity in place the previous month. Renewable diesel capacity was up 951 MMgy when compared to the 971 MMgy of capacity in place in April 2021.

U.S. biofuel producers consumed an estimated 25.273 billion pounds of feedstock in April, down from 27.193 billion pounds the previous month, but up when compared to 24.243 billion pounds of feedstock consumed in April 2021.

Biofuel producers consumed 23.294 billion pounds of corn in April, down from 25.383 billion pounds the previous month, but up from 22.821 billion pounds in April 2021. Producers also consumed 164 million pounds of grain sorghum, up from 97 million pounds in March. The EIA withheld the volume of grain sorghum that went to biofuel production in April 2021 to avoid disclosure of individual company data.

According to the EIA, 839 million pounds of soybean oil was used to produce biofuels in April, down from 908 million pounds in March, but up when compared to the 700 million pounds consumed in April of last year. Approximately 211 million pounds of corn oil went to biofuel production in April, down slightly when compared to the 212 million pounds consumed in the previous month and flat when compared to the 211 million pounds consumed in April 2021. Biofuel producers also consumed 101 million pounds of canola oil in April. The volume of canola oil that went to biofuel production in March 2022 and April 2021 was withheld by the EIA to avoid disclosure of individual company data.

Biofuel producers also consumed 402 million pounds of yellow grease, 130 million pounds of beef tallow, 57 million pounds of white grease and 13 million pounds of poultry fat in April, compared to 338 million pounds, 127 million pounds 47 million pounds and 15 million pounds, respectively, in March. Biofuel producers consumed 248 million pounds of yellow grease, 93 million pounds of beef tallow, 64 million pounds of white grease, and 36 pounds of poultry fat in April 2021. Biofuel producers also consumed 3 million pounds of other waste fats, oils and greases in April 2021. The EIA withheld data on the consumption of other fats, oils and greases in April 2022 and March 2022 to avoid disclosing individual company data.

According to the EIA, biofuel producers also consumed 62 million pounds of feedstock classified as “other” recycled feeds and wastes in April, down from both 66 million pounds in March 63 million pounds in  April 2021.

Additional data is available on the EIA  website

Read the original story here

US Grains Council

Jun 27, 2022

Turkey is the largest buyer of U.S. distillers’ dried grains with solubles (DDGS) in the Middle East region. However, due to COVID-19 travel restrictions, the U.S. Grains Council was unable to engage Turkish buyers via in-person programs for nearly two years.

In October 2021, in-person programming resumed when the Council invited a delegation of Turkish buyers to the United States to attend the Distillers’ Grains Technology Conference (DGTC). During the group’s travels, team members were able to learn about U.S. DDGS production, meet with a variety of suppliers and explore export channels. As a result of the program, the team members purchased more than $14 million of U.S. DDGS. The program was accomplished by using Agriculture Trade Promotion (ATP) funds provided by the U.S. Department of Agriculture.

The team, hosted by the Council and the Illinois Corn Growers Association, visited a U.S. corn farm, river elevators, and Marquis Energy, the largest single-site ethanol plant in the world. Additionally, the team met with agribusiness companies, including StoneX in Chicago, and toured a container port facility in Savannah, Georgia, where they were hosted by two DDGS exporters.

Turkey is a traditional importer of bulk DDGS but has recently bought increasing quantities of DDGS in containers, making the visit timely for evolving marketing opportunities in the Middle East region.

Following the port visit, the team attended the DGTC in Louisville, Kentucky, where they heard about emerging technologies in the corn co-product space, which will likely generate future demand for these products. During the conference, the Council organized individual meetings with U.S. agribusinesses, including CHS, Gavilon, The Andersons, Inc., and Louis Dreyfus Company. The meetings provided a private venue for attendees to conclude negotiations to purchase U.S. DDGS.

Following the trip, the team purchased 40,000 metric tons of U.S. corn co-products valued at more than $14 million. The Council invested $50,000 of ATP funds to execute this program. The resulting $14 million worth of business conducted yielded a return on investment of over $280 per $1 of ATP funds invested.

Read the original story here

US Grains Council

Jun 30, 2022

The U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA) welcome Canada’s finalized Clean Fuel Regulations, an initiative to reduce the lifecycle carbon intensity of fuel and energy used in Canada and achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. The Canadian Clean Fuel Regulations will rely heavily on the use of low-carbon biofuels like ethanol. For example, the program has modeled compliance to include an average of 15 percent ethanol (E15) in gasoline by 2030.

“We applaud Canada for finalizing its Clean Fuel Regulations and leading the globe in putting a plan in place to slash greenhouse gas emissions from the transportation sector through higher blends of biofuels,” the organizations said. “The Clean Fuel Regulations set Canada on a path toward better air quality, energy security, and carbon mitigation, all supported by rural communities, by setting the achievable goals of reducing more than 20 million tons of greenhouse gas emissions through a move to 15 percent ethanol in all gasoline by 2030. The Clean Fuel Regulations stand as testimony to the powerful impact biofuels can and will have for Canada’s transportation future.”

Background

In March 2021, the Council, Growth Energy and RFA submitted comments to Environment and Climate Change Canada regarding its proposed regulation.

Learn more about the  Clean Fuel Regulations.

Read the original press release here

Renewable Fuels Association

Jun 28, 2022

A new  study  released today by the Department of Energy (DOE) found that the U.S. ethanol industry once again leads the nation in the share of its workforce that is comprised by military veterans, with one in every six employees previously serving in the armed forces. The DOE report also showed that the concentration of union workers in the ethanol industry is higher than the national average.

“Veterans make up 16% of the corn ethanol workforce, a higher concentration of veterans than any other energy technology and higher concentration than the 6% national average,” according to the report, which was prepared by DOE’s Office of Policy, Office of Energy Jobs. Across all energy sectors, veterans account for 9% of the workforce.

Meanwhile, ethanol industry workers represented by a union or labor agreement make up 7% of the industry workforce, higher than the national workforce average of 6%. The ethanol industry’s union worker density is identical to that of the petroleum fuels sector, according to the report.

“Today’s report from DOE confirms once again that the U.S. ethanol industry proudly leads the way in hiring military veterans,” said RFA President and CEO Geoff Cooper, himself an Army veteran. “The ethanol industry’s values and priorities align extremely well with those of our women and men in uniform, so it’s no surprise that one out of every six ethanol industry workers is a veteran. Military veterans know that they can continue to protect their fellow Americans and serve their country by producing a homegrown, cleaner, greener, and more affordable renewable fuel.”

Cooper also noted that the DOE report underscores that progress is being made toward the industry goals of greater diversity, equity, and inclusion.

  • Females account for 30% of the ethanol industry workforce, well above the 25% average across all energy sectors.
  • Workers with disabilities make up 4% of the ethanol industry workforce, double the average across all energy sectors.
  • The portion of the ethanol industry workforce made up of Hispanic or Latino workers has grown from 9% in  2018  to 12% in 2022, while the share comprised of Native Hawaiian or other Pacific Islander workers has doubled from 1% to 2%.

The shares of workers identifying as American Indian or Alaska Native (1%), Asian (6%), Black or African American (5%), and two or more races (5%) have held steady since 2018.

Read the original story here

Ethanol Producer Magazine

Jun 17, 2022

Production and use of renewable ethanol from ePURE members reduced greenhouse-gas emissions by an average of 76.9 percent compared to fossil fuels in 2021, according to newly certified data. It was the tenth consecutive year in which EU renewable ethanol increased its GHG-reduction score.

The record-breaking figure comes at a crucial moment for EU energy and climate legislation as policymakers determine what role sustainable biofuels such as renewable ethanol can play in the drive to carbon-neutrality.

“The new data once again confirm what we have known for years: that renewable ethanol is the most cost-effective GHG-abatement solution the EU has,” said David Carpintero, director general of ePURE, the European renewable ethanol association.

“With Europeans continuing to buy and drive cars that run on liquid fuel, there is more than ever a need for a sustainable, renewable, socially inclusive solution. Phasing out sustainable biofuels such as renewable ethanol – as some policymakers want to do – doesn’t just go against common sense, it also opens the door for more reliance on fossil fuel. Nobody wants that.”

The record-high GHG-saving performance of ePURE members’ ethanol was also accompanied by significant production of animal feed (4.48 million metric tons) and of captured CO2 (1.05 million metric tons) – more ways in which ethanol production contributes to EU food security and offsets fossil fuel use. For the first time, ePURE members produced more animal feed co-products than renewable ethanol – more food than fuel. The 2021 findings were compiled from ePURE members and certified by auditing firm  Copartner.

The new statistics also back up the findings of  research from studio Gear Up  comparing the full-life-cycle emissions of renewable fuel blends with hybrid and battery electric vehicles showing that renewable ethanol is EU’s most cost-effective solution for reducing car emissions.

ePURE’s membership includes 21 producing companies with around 50 refineries across the EU and UK, accounting for about 85 percent of EU renewable ethanol production.

Read the original story here