In the News

Star Tribune

Feb 23, 2024

The U.S. Environmental Protection Agency finalized a new rule this week allowing year-round sales of E15, a blend of ethanol and gasoline, at gas pumps across Minnesota and several corn-growing Midwestern states starting next year.

Historically, E15 has been banned during summer months for fears it produces smog. In 2022, the governors of eight states, from the Dakotas east to Ohio, disputed the smog concerns and requested permanent sales of the fuel blend, which is produced partially from corn starch grown by American farmers.

On Thursday, the EPA delivered the governors a favorable ruling. But the agency's effective date isn't until 2025, frustrating farmers and the ethanol industry.

"While this is welcome news," said Brian Werner, executive director of the Minnesota Bio-Fuels Association, "the EPA's delay in finalizing this action means that it won't go into effect until summer 2025, and Minnesotans won't have access to the lowest-cost fuel at the pump this summer."

In announcing the ruling, the EPA described "concerns over insufficient fuel supply" as a reason they'd pushed the effective date back to the summer after next.

In a statement, U.S. Sen. Amy Klobuchar said the use of higher blends in fuel is "good for our farmers, our economy and our national security." The Minnesota Democrat has sponsored a bill with Nebraska Republican Sen. Deb Fischer to bring year-round E15 to the entire country.

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Renewable Fuels Association

Feb 19, 2024

As inflationary pressures eased and demand boomed for low-carbon ethanol and its co-products, the ethanol industry’s contribution to the U.S. economy remained strong in 2023, according to an  annual economic impact analysis  conducted for the Renewable Fuels Association by ABF Economics.

In 2023, more than 72,400 U.S. jobs were directly associated with the ethanol industry, with an additional 322,000 indirect and induced jobs supported across all sectors of the economy. The industry created $32.5 billion in household income and contributed just over $54.2 billion to the nation’s gross domestic product—the second-highest GDP contribution ever. As a result, an estimated $10.4 billion in tax revenue was generated for federal, state and local governments. Returns over operating costs averaged an estimated $0.47 per gallon, almost doubling the average operating margin from 2022, according to the report.

“The U.S. ethanol industry is proud of the enormous contribution it makes to our nation’s economic vitality and environmental well-being,” said RFA President and CEO Geoff Cooper. “After dealing with surging inflation and a global energy crisis in 2022, the ethanol industry saw far more stability in 2023—both in the marketplace and across the policy and regulatory landscape. As we look ahead to new markets and new opportunities, we know the industry’s positive impact on the economy and environment will only continue to expand.”

The 2023 report also shows that the industry spent nearly $39 billion on raw materials, other inputs, and goods and services to produce ethanol last year, with corn purchases alone accounting for nearly $32 billion. The study also provides a breakdown of the industry’s economic impacts in major ethanol-producing states in 2023. Notably, in Iowa, which accounts for roughly one-quarter of U.S. ethanol capacity, the industry supported over 100,000 jobs.  

“The ethanol industry continued to make a significant contribution to the economy in terms of GDP, job creation, generation of tax revenue, and displacement of crude oil and petroleum products in 2023,” the report concludes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable. Growth and expansion of the ethanol industry as it applies new technologies and addresses new markets will enhance the industry’s position as the original creator of green jobs and will enable America to make further strides toward reducing greenhouse gas emissions and positively dealing with climate change.”

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Senator Amy Klobuchar

Feb 15, 2024

WASHINGTON - U.S. Senators Amy Klobuchar (D-MN), John Thune (R-SD), and Tammy Duckworth (D-IL), and a group of 40 bipartisan members of Congress, including Senators Baldwin (D-WI), Brown (D-OH), Durbin (D-IL), Ernst (R-IA), Fischer (R-NE), Grassley (R-IA), Marshall (R-KS), Moran (R-KS), Peters (D-MI), Ricketts (R-NE), Rounds (R-SD), Smith (D-MN), and Stabenow (D-MI), as well as Representatives Craig (D-MN), Johnson (R-SD), Pocan (D-WI), Smith (R-NE), Alford (R-MO), Bacon (R-NE), Bost (R-IL), Budzinski (D-IL), Crockett (D-TX), Davids (D-KS), Estes (R-KS), Feenstra (R-IA), Finstad (R-MN), Flood (R-NE), Hinson (R-IA), Kaptur (D-OH), Kelly (D-IL), LaHood (R-IL), LaTurner (R-KS), Miller (R-OH), Miller-Meeks (R-IA), Nunn (R-IA), Panetta (D-CA), Slotkin (D-MI), Sorensen (D-IL), and Van Orden (R-WI) sent a letter urging the Biden Administration to act quickly to ensure that the model used to determine eligibility for Sustainable Aviation Fuel (SAF) tax credits unlocks the  potential held by farmers, ethanol producers, and airlines to reduce carbon emissions from aviation. 

Specifically, the letter urged the Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG) at the Department of Energy to update the current Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for the SAF tax credit program by the March 1 deadline. 

“Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America,” wrote the lawmakers. “As you continue to develop a model to determine eligibility for tax credits under 40B GREET, we ask that you consider the following information to allow every participant in the SAF lifecycle to appropriately participate in the carbon reduction process. 

“We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible,” continued the lawmakers. “This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage.”

Klobuchar has long supported legislation to bolster sustainable aviation fuel.

In January 2024, Klobuchar, along with Senators Jerry Moran (R-Kan.), Joni Ernst (R-Iowa), Tammy Duckworth (D-IL.) and Chuck Grassley (R-IA)  introduced  the Farm to Fly Act. This legislation would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs and allow further growth for alternative fuels to be used in the aviation sector, creating new markets for American farmers.

In June 2023, Klobuchar joined Senators Tammy Duckworth (D-IL), Deb Fischer (R-NE), Joni Ernst (R-IA), and Chuck Grassley (R-IA) in introducing the  Sustainable Aviation Fuels Accuracy  Act, comprehensive bipartisan legislation to identify the standards required to meet the definition of SAF at the Federal Aviation Administration (FAA).

In June 2021, Klobuchar announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.

In 2021, Klobuchar and Senator Joni Ernst (R-IA) reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.

Full text of the letter is available  HERE  and below: 

Dear Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG):

We write regarding the implementation of the Department of Energy’s (DOE) updated Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for sustainable aviation fuel (SAF). 

As you know, homegrown SAF has the potential to drive economic growth and create jobs across America. We recognize your recent decision to allow the GREET model to serve as a secondary model for sustainable aviation fuel as a step in the right direction. This announcement has the potential to bring us closer to scaling up domestic production of SAF as America looks to fortify its domestic energy supply and decarbonize the aviation fuels sector. Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America. As you continue to develop a model to determine eligibility, we ask that you take measures to permit every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.

We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible. We also ask that, in the process of doing so, you adhere to the rigorous science on which the model is based. This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage. 

Specifically, we ask that you make the following commitments:

  1. The updated GREET model must be completed and implemented by the IWG’s stated deadline of March 1, 2024. Biofuel producers are eager to begin making investments in production capacity. If the modeling update misses this deadline, these investments will remain on hold.
  2. Any proposed modifications to GREET should be subject to the normal scientific, agency, and public processes. Any modifications to the model must be governed by the latest science at the DOE’s Argonne National Lab, who have been recognized as the leaders in developing models to calculate carbon life-cycle analyses.
  3. Any modifications must ensure that the model will continue to accurately credit conservation practices and emissions reductions from regenerative farming as well as carbon capture and storage. Exclusion of these factors would omit critical efforts by American farmers to reduce emissions and would represent a missed opportunity to include rural America in the diversification of the aviation fuel sector.
  4. Ensure that valuations of indirect land-use changes recognize the contributions of American agriculture and reward modern practices like precision agriculture that lead to higher per-acre yields.

While we recognize your ongoing work to support the production of SAF, the actions above are crucial for ensuring the long-term stability and growth of this field. We stand ready to work with you to implement the updated GREET model as soon as possible, which will unleash the full potential of domestic SAF production and ensure American farmers can fuel the future. 

Thank you for your attention to this important issue.

Read the original press release here

Ethanol Producer Magazine

By National Corn Growers Association

Feb 9, 2024

A  letter signed by 3,466 farmers  from across the country was sent to President Biden on Feb. 7 expressing concern that his administration is taking a short-sighted approach to addressing climate change by prioritizing the use of electric vehicles over biofuels, such as corn ethanol, as it works to drastically lower the nation’s greenhouse gas emissions.

“If we are going to address climate change and meet our sustainability goals, we are going to have to take a multi-pronged approach, that includes tapping into higher levels of biofuels, such as corn ethanol, which offers an immediate climate solution,” the letter said.

The letter, which drew thousands of signatures in less than a week, comes as the U.S. Environmental Protection Agency prepares to release its light- and medium-duty vehicle tailpipe emissions standards for 2027-2032. To help meet the standards, the president has set a goal that 50% of all vehicle sales will be electric by 2030. A similar rulemaking is also being considered through the National Highway Traffic Safety Administration.

 recent survey,  sponsored by the National Corn Growers Association and conducted by Morning Consult, showed that Americans have concerns on a range of issues involving electric vehicles, including the accessibility of charging stations, and an overwhelming majority say vehicles that are compatible with biofuels should remain available to consumers.

In January,  thousands of auto dealers  from across the country signed on to a similar letter to the president noting that electric vehicles were not selling quickly and were piling up on dealer lots.In the most recent letter, the farmers said it could take years before EVs become popular with consumers, which means the administration must expand its focus and efforts to address GHGs with solutions that are available now.
 

“As a low-carbon, clean energy source and an affordable, homegrown fuel, ethanol serves as a critical pathway for agriculture and rural America to contribute to a sustainable future,” the letter noted. “We hope you will join us in fully embracing this technology as we all do our best to fight the causes and effects of climate change.

”The letter noted that California, one of the most prominent states in the push for electrification has spent years at the forefront of the transition to EVs, spending enormous political capital and billions of dollars to encourage its citizens to embrace these vehicles. Yet, by the end of 2022, only  2.6% of the state’s light-duty vehicles  were electrified.

Gas stations nationwide currently carry fuel with at least 10% ethanol blends, though selling higher blends of ethanol through the summer months currently requires a waiver by EPA.

Corn growers have urged Congress to pass legislation that would allow for higher levels of ethanol blends year-round. NCGA is also pushing to advance the Next Generation Fuels Act, which would lower fuel prices, reduce carbon emissions and help shore-up America’s energy security.

Read the original story here.

Ethanol Producer Magazine

Feb 7, 2024

U.S. fuel ethanol production was up more than 4% the week ending Feb. 2, according to data released by the U.S. Energy Information Administration on Feb. 7. Stocks of fuel ethanol were up 2% and exports fell by 43%

Fuel ethanol production averaged 1.033 million barrels per day the week ending Feb. 2, up 42,000 barrels per day when compared to the 991,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Feb. 2 was up 33,000 barrels per day. 

Weekly ending stocks of fuel ethanol reached 24.779 million barrels the week ending Feb. 2, up 509,000 barrels when compared to the 24.27 million barrels reported for the previous week. When compared to the same week of last year, stocks for the week ending Feb. 2 were up 362,000 barrels. 

Exports of fuel ethanol averaged 78,000 barrels per day the week ending Feb. 2, down 59,000 barrels per day when compared to the 137,000 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 Feb. 2.

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Renewable Fuels Association

Feb 8, 2024

According to new statistical reports released today by the Renewable Fuels Association, the value of the U.S. ethanol industry’s exports soared to a record level of just over $7.1 billion in 2023.  Ethanol export volumes strengthened to 1.43 billion gallons in 2023, the third-highest level on record. Meanwhile, distillers grains shipments registered at 10.8 million metric tons, slightly down from 2022.

For more than a decade, RFA’s annual trade summaries have provided industry advocates, policymakers, news media, and the public with the latest data and analysis, demonstrating the importance of U.S. ethanol and distillers grains to the world market.

“Exports represent a crucially important value-added market opportunity for U.S. ethanol producers and the farmers who supply feedstock to our industry,” said RFA President and CEO Geoff Cooper. “We exported one out of every 10 gallons of ethanol produced in the United States last year, along with one out of every three tons of distillers grains. The industry’s export sales made a remarkably positive contribution to the U.S. trade balance, while boosting farm incomes across rural America. As countries around the globe embrace ethanol as a low-cost solution for improving air quality and reducing carbon emissions, RFA will continue to pursue and protect free and fair trade opportunities.”

As detailed in the  ethanol trade summary report,  the 1.43 billion gallons exported in 2023 represented an increase of 9 percent over 2022 and the highest volume since 2019. The value of U.S. ethanol exports surged to $3.82 billion, a record high. Shipments to Canada set an annual record for a single destination, tallying almost 640 million gallons. The United Kingdom, European Union, South Korea, India and Colombia also were sizable markets.

U.S. imports of fuel ethanol plunged to 21 million gallons in 2023, the lowest level in more than a decade. The U.S. remained a net exporter for the 14th consecutive year, as imports accounted for only 0.1 percent of domestic consumption. Net exports of 1.41 billion gallons were the second-highest ever, trailing 1.60 billion gallons in 2018.

The second trade summary report released today  covers co-product exports,  including distillers grains, a high-protein feed ingredient for livestock and poultry. Distillers grains exports totaled 10.81 million metric tons in 2023, representing 30 percent of domestic production. Export volumes were slightly lower than 2022, as was their value, at $3.3 billion.

The U.S. supplied distillers grains to more than 50 countries via 26 domestic ports and exit points. Mexico remained the top export market with a 20 percent share, followed by South Korea and Vietnam and Indonesia. Turkey and Morocco were the largest growth markets in 2023, with increases of 48 percent and 39 percent, respectively, compared to 2022.

Printed copies of these analyses will be available to attendees at RFA’s upcoming  National Ethanol Conference  in San Diego, Calif.

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Ethanol Producer Magazine

Feb 1, 2024

Novozymes on Feb. 1 released unaudited results for 2023, reporting that bioenergy sales were up approximately 23% last year. The company, which on Jan. 29  merged with Chr. Hansen  to form Novonesis, is expected to release full audited results on Feb. 8

According to the company, bioenergy sales were up 20% in the fourth quarter when compared to the same three-month period of 2022. Bioenergy sales for the full year 2023 were up 23% when compared to 2022.

Novozymes attributed the strong performance in bioenergy sales to continued penetration in the broad and innovative solutions toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a favorable market environment. In particular, the company said the North American market experienced strong developments supported by a favorable market environment and roughly a 2 percent increase in U.S. ethanol production. 

Performance was also strong outside of North America, driven by innovation as well as capacity expansion of corn-based ethanol production in Latin America. Growth was also supported by solutions for biodiesel production and sales of enzymes used in second-generation biofuel production. In addition, pricing had a positive impact on growth, Novozymes said. 

Bioenergy sales accounted for 25% of total sales last year, according to Novozymes. The company’s household care; food, beverage and human health; grain and tech processing; and agriculture, animal health and nutrition segments accounted for 28%, 22%, 13% and 12% of 2023 sales. 

Overall, Novozymes reported a 6% percent increase in sales for the fourth quarter, and 5% growth for the full year. A full copy of the company’s announcement is available on its  website.

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Ethanol Producer Magazine

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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