In the News
Nov 12, 2020
U.S. fuel ethanol production increased by nearly 2 percent the week ending Nov. 6, according to data released by the U.S. Energy Information Administration on Nov. 4. Weekly ending stocks were up nearly 3 percent.
U.S. ethanol production reached 977,000 barrels per day the week ending Nov. 6, up 16,000 barrels per day when compared to the 961,000 barrels per day of production reported for the previous week. When compared to the 1.03 million barrels per day produced during the same week of last year, production was down 53,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol increased to 20.129 million barrels the week ending Nov. 6, up 484,000 barrels when compared to the 19.675 million reported for the previous week. Stocks of fuel ethanol have fallen over the past several months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 826,000 barrels.
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Nov 9, 2020
The USDA on Nov. 6 released select commodity tables from its USDA Agricultural Projections to 2030 report, which is scheduled to be released in full in February 2021. The report predicts a slight growth in corn use for ethanol over the next decade.
According to the USDA’s projections, corn planted acres are expected to remain relatively flat over the next 10 years. Planted acres were at 89.7 million in 2019-’20, are expected to reach 91 million in 2020-’21, fall to 90 million from 2021-’22 through 2025-’26, fall to 89 million in 2026-’27 and remain at that level through 2030-’31. Similarly, harvested corn acres were at 81.3 million in 2019-’20, are expected to increase to 82.5 million in 2020-’21 and remain at that level through 2025-’26, fall to 81.5 million in 2016-’27 and remain at that level through 2030-’31.
Corn yields are expected to increase steady over the next decade, from 167.5 bushels per acre in 2019-’20 to 198.5 bushels per acre in 2030-’31.
The USDA’s data shows 4.852 billion bushels of corn went to ethanol production in 2019-’20. That volume is expected to grow to 5.05 billion bushels in 2020-’21, increase to 5.125 billion bushels in 2021-’22 and remain at that level through 2027-’28, and increase to 5.15 billion bushels in 2028-’29 and remain at that level through 2030-’31.
Additional information is available on the USDA website.
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Nov 3, 2020
The Governor’s Council on Biofuels has given Gov. Tim Walz its consensus report on the steps needed to grow Minnesota’s biofuels industry and get the state back on track to meet renewable energy goals.
Walz charged the 15-member council to recommend policies to accelerate achievement of Minnesota’s biofuels and greenhouse gas reduction goals. The group worked over the past nine months to find ways to achieve this that help farmers, rural communities, the natural environment, and economically disadvantaged populations.
“I am a longtime supporter of biofuels because they are good for both our environment and our economy. A strong biofuels industry in Minnesota not only provides good-paying jobs and helps our economy grow, but it also aids in reducing harmful greenhouse gases,” said Governor Tim Walz. “I am grateful for the work of each member of the Council, and I look forward to reviewing the full set of recommendations.”
The Council’s recommendations (pdf) include accelerating the state’s move toward 15 percent ethanol content in gasoline; adopting a Low Carbon Fuel Standard; increasing biofuels use in the state fleet; increasing public understanding and marketing of biofuels; and developing advanced biofuels.
“Agriculture has a big role to play in helping our state achieve its renewable energy goals,” Minnesota Agriculture Commissioner Thom Petersen said. “I want to thank all the council members for helping us figure out how to move Minnesota toward those goals in a way that will be good for producers and consumers.”
Minnesota adopted statutory goals in the 2007 Next Generation Energy Act to replace 30 percent of the state’s petroleum use with biofuels by 2025. But is not on track to meet those goals, due to a combination of low market prices and changes in federal policy.
”Gov. Walz, Lt. Gov. Peggy Flanagan and Commissioner Petersen convened us to ensure that Minnesota homegrown biofuels play a vital role in Minnesota’s response to the climate challenge,” said Mike Bull, director of policy and external affairs at the Center for Energy and Environment, and a member of the council. “I’m thankful for their leadership and grateful to my fellow council members for our good work together.”
The biofuels industry provides important markets for agricultural commodities and generates an estimated $6.7 billion in annual economic impact.
Members of the council represented the biofuels industry, agricultural and farm groups, the service station industry, the wood products industry, and energy and environmental organizations.
“Our Biofuels Council approved the final report today culminating from a year of work among the stakeholders,” said Brian Thalmann, board member of the Minnesota Corn Growers Association, and a member of the council. “It recognizes the value that expanded biofuel use will provide to Minnesota’s citizens and the environment and provides recommendations to accelerate achievement of our petroleum replacement goals. I look forward to engagement by the stakeholders moving forward as we work with state officials in the implementation of these ideas.”
The Minnesota Department of Agriculture (MDA) facilitated the Council’s work. Find more resources about the Council’s goals and view the report on the MDA’s website.
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Oct 30, 2020
NEW YORK (Reuters) - The United States and Brazil, the two leading ethanol producers, see potential for a large increase in global use of the biofuel as an outright way to cut carbon emissions while the world transitions to all-electric cars, according to industry representatives this week.
“There is a lot of hope (to cut emissions) related to electric vehicles, but the current fleet will still be around for a long time,” said Brian Healy, director for ethanol market development at the U.S. Grains Council, adding that biofuel blending in combustion engine cars is the quickest way to improve air quality.
Speaking during the Datagro’s International Conference on Sugar and Ethanol this week, Healy said countries should move faster to implement plans to blend ethanol to gasoline.
Several countries and regions around the world are discussing or setting targets to increase use of biofuels such as China, Canada, Britain, India, Mexico, Vietnam, South Africa and Australia. But there have been delays everywhere.
Analysts see an unwillingness from some countries to depend on renewable energy sources if they can not produce them, as is the case with China which postponed its target for a national E10 blending policy.
Lara Bacellar, trading manager at Brazil’s Copersucar SA, one of the world’s largest ethanol merchants, said that if all mandates and policies for blending in the world were fulfilled, including the U.S. E15 proposition, demand could jump as much as 55 billion liters (12.1 billion gallons) per year.
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Oct 30, 2020
The U.S. Grains Council (USGC) signed an official memorandum of understanding (MOU) this week with the Vietnamese Ministry of Industry and Trade (MOIT) aimed at expanding the use and availability of ethanol in Vietnam. The agreement promises to further a strong partnership between the two nations and encourage expanded ethanol use throughout Southeast Asia.
“The Council stands ready to support the MOU and the Vietnamese ethanol industry,” said Ryan LeGrand, USGC president and chief executive officer, who provided virtual remarks for the MOU signing. “The MOU helps further an already strong partnership between the U.S. and Vietnamese industries and governments. We thank the Vietnamese Ministry of Industry and Trade (MOIT), the U.S. Embassy and Consulate in Vietnam and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS) for their ongoing dialogue and partnership.”
The MOU was signed during the 2020 Indo-Pacific Business Forum, which took place this week virtually and in-person in Hanoi, Vietnam. This year’s forum was aimed at advancing a vision for the Indo-Pacific region as a free and open region comprised of independent, strong and prosperous nations. Hosted by the U.S. Trade and Development Agency, the event is part of overall efforts to establish the United States as an essential and enduring partner to Southeast Asia.
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Oct 28, 2020
U.S. fuel ethanol production increased by 3 percent the week ending Oct. 23, while weekly ending stocks fell by nearly 1 percent, according to data released by the U.S. Energy Information Administration on Oct. 28.
U.S. ethanol production expanded to an average of 941,000 barrels per day the week ending Oct. 23, up 28,000 barrels per day from the average of 913,000 barrels per day reported for the previous week. When compared to the 1.004 million barrels per day produced during the same week of 2019, production was down 63,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol fell to 19.601 million barrels the week ending Oct. 16, down 120,000 barrels when compared to the 19.721 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 1.498 million barrels.
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Oct 26, 2020
The U.S. Grains Council conducted a webinar for producers in the Dominican Republic and Educator in mid-September to provide an update on U.S. corn and sorghum production and offer the latest information on the benefits of U.S. distillers dried grains with solubles (DDGS) for feed, poultry and swine production. The webinar also introduced distiller’s corn oil (DCO) as a potential new feed ingredient.
“We are working to build confidence in these potential buyers,” said Ana Ballesteros, USGC marketing director for Latin America. “Increasing DDGS awareness and understanding of its benefits when used in poultry and swine formulas is needed to generate a willingness to buy.”
Poultry and swine producers in the Dominican Republic do not currently use DDGS. In February 2020, the Council’s staff in Latin America set a strategy to engage with producers and purchasing groups, specifically targeting those with the volume capacity to import DDGS in combination shipments with corn and other U.S. agricultural products.
The recent webinar included 10 speakers, including five U.S.-based consultants covering the nutritional benefits of corn, sorghum, DDGS and DCO, handling and management practices, and logistics of the Latin American market.
Feed, poultry and livestock producers who are members of AFABA, an Ecuadorian poultry and livestock producers association, were also invited to attend the event after the organization reached out to the Council in search of technical information on DDGS.
“The array of topics allowed for broader discussions with markets where we feel these U.S. products could make a difference in our customers’ bottom lines,” Ballesteros said.
The Council will continue to work with producers in both countries to help them gain a deeper understanding of the benefits of DDGS and how best to formulate its use for different species. Follow up one-on-one consultations with participating companies and virtual tours of U.S. production are next steps in this engagement.
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Oct 21, 2020
Greenfield Global Inc., Canada’s largest fuel ethanol producer, announced today that it will acquire the 182 million litre (48 million gallon) per-year Corn Plus ethanol facility in Winnebago, Minnesota.
The Corn Plus facility makes ethanol for the purpose of blending into gasoline and has been shuttered since September 2019.
“This ushers in a new era of North American production for Greenfield,” said Howard Field, President & CEO of Greenfield Global.” We are excited to join producers in the United States in making the world’s cleanest and most accessible biofuel. The addition of Corn Plus to our biofuels portfolio complements our strategy of being a leading producer of renewable energy solutions and enhances our ability to service low-carbon fuel markets more effectively and efficiently.
”North American fuel markets will continue to operate as an increasingly interconnected supply chain given the market challenges of COVID-19, coupled with the recent coming into force of the United States-Mexico-Canada Agreement (USMCA). Greenfield Global’s addition of a United States based-corn ethanol facility provides the Company with a larger and more diverse geographic footprint from which to operate. Greenfield Global purchased the Corn Plus facility in a receivership process. The Company expects to produce fuel ethanol and its co-products once a startup plan is established.
“We look forward to welcoming the Corn Plus team to Greenfield, re-establishing a market for Minnesota corn growers, and working closely with the community to bring jobs back to Winnebago.” said Jean Roberge, EVP & Managing Director of the Greenfield Global Renewable Energy Business Unit. “We are confident that our best practices, paired with the technology adaptation experience of our combined staff, will produce Greenfield’s industry-leading, low carbon intensity biofuels from this facility.
”Roberge added, “Biofuels are the key to lowering greenhouse emissions in the transportation sector. This investment in our ethanol portfolio, combined with the expansion of our biorefinery in Varennes, Quebec, will significantly increase our ability to supply renewable fuel needed to help preserve the health of our planet.”
Douglas Dias, Greenfield Global’s VP Sales and Market Development, stated “Greenfield’s fuel ethanol customers will benefit from this new supply of low carbon ethanol. We are excited to offer our existing customers more resilience and broader supply options to meet their increasing demands, while serving new fuel customers in the United States.”
About Greenfield Global Inc.
Greenfield Global provides high-value, mission-critical raw materials, ingredients and additives that are vital to businesses, improve people’s lives, and preserve the health of the planet. Greenfield is the largest ethanol producer in Canada and owns and operates four ethanol distilleries, five specialty chemical manufacturing and packaging plants, and three next generation biofuel and renewable energy R&D centers in Canada and the United States. Founded in 1989, Greenfield continually develops more efficient and sustainable technologies and products while shrinking its own carbon footprint. From start-ups to the largest brands in the world, customers trust Greenfield’s extensive portfolio of premium products, regulatory expertise, and industry-leading service. Under its Pharmco and Commercial Alcohols brands, Greenfield delivers hundreds of products to thousands of Life Science, Food, Flavor, Fragrance, and Beverage customers in more than 50 countries worldwide.
To learn more, visit www.greenfield.com
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Oct 22, 2020
With more than 15 million cars registered in the state, California has almost twice as many vehicles on the road than any other state in the nation, which makes it the number one market for growing domestic ethanol demand.
To that end, the National Corn Growers Association (NCGA), state corn organizations, ethanol groups and the auto industry, are working with the California Air Resources Board (CARB) to conduct vehicle testing using 15 percent ethanol (E15) at the University of California at Riverside (UCR). The Renewable Fuels Association, Growth Energy, and the United States Council for Automotive Research (USCAR) are partnering on the study.
The testing will demonstrate the environmental benefits and compatibility of E15 in selected makes and models of vehicles. This process will help pave the way for sales of E15 and higher blends of ethanol in California.
“With the scope of research agreed upon and contracts signed, E15 testing in California can move forward,” said JR Roesner, Indiana farmer and Ethanol Action Team (ETHAT) member. “If we can achieve E15 as the base fuel in California, based on estimated total gasoline usage in the state in 2015, the potential market opportunity would be roughly 750 million gallons of ethanol or 260 million bushels of corn.”
Tests will be conducted on 20 late-model vehicles to measure tailpipe and evaporative emissions. Testing a broad sample of makes, models, and technology levels with both E10 and E15 blends will provide CARB with the necessary information to permit the sale of E15 in California.
“Motor gasoline volatility is varied throughout the year to ensure good cold-start and drivability while also controlling evaporative emissions,” said Brian West, NCGA contributor and former Group Leader for the Fuels and Engines Research Group at the National Transportation Research Center at Oak Ridge National Laboratory. “Summer fuel is used in certification tests, and we wanted to use retail fuel for this program. If the refiners had begun the changeover to fall/winter gasolines, we would have been significantly delayed either waiting for 2021 summer fuel or having to source a specialty fuel, which is very expensive and also has very long lead times.”
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Oct 15, 2020
U.S. fuel ethanol production increased by nearly 2 percent the week ending Oct. 9, according to data released by the U.S. Energy Information Administration on Oct. 15. Stocks also increased by approximately 2 percent.
U.S. ethanol production increased to an average of 937,000 barrels per day the week ending Oct. 7, up 14,000 barrels per day from the average of 923,000 barrels per day reported for the previous week. When compared to the 971,000 barrels per day produced during the same week of 2019, production was down 34,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.
Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks for fuel ethanol increased to 20.008 million barrels the week ending Oct. 9, up 336,000 barrels when compared to the 19.672 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 2.053 million barrels.
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CoBank - The Quarterly
October 2020
The U.S. ethanol sector continued to recover during the quarter to a new baseline level equating to 85%-90% of pre-COVID demand. Based on EIA data on an annualized basis, weekly production averaged 14.2 billion gallons for the third quarter, 89% of the first quarter’s average production of 15.9 billion gallons.
For a representative Iowa dry milling fuel ethanol plant, industry operating margins (defined as return on operating costs but before capital costs) also improved, averaging $0.21 per gallon, up from break-even during the first quarter. The improvement occurred as supply and demand became more balanced, and active producers benefited from better productivity.
New developments support the industry as we head into the November elections. First, the Trump administration is removing E15 federal roadblocks. The recently-introduced Next Generation Fuels Act would enable the sale of E15 fuel using E10 pumps, subject to state regulations. Second, EPA has promised to deny numerous oil refineries’ ethanol blending exemption requests. Third, Brazil has agreed to duty-free imports of U.S. ethanol for 90 days. Fourth, there is potential for financial relief to the biofuel sector in the next government spending program. Fifth, perhaps most importantly, supply and demand remain in relative balance at current production levels.
We maintain a stable industry outlook over the next two quarters for U.S. ethanol, assuming that the economy does not experience a double dip. Our outlook assumes continued high unemployment levels and below average consumer miles driven. Our opinion could become more bullish should new coronavirus cases drastically decline and/or an effective COVID-19 vaccine is rapidly produced and widely administered.
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Oct 7, 2020
U.S. fuel ethanol production expanded by nearly 5 percent the week ending Oct. 2 while weekly ethanol ending stocks fell slightly, according to data released by the U.S. Energy Information Administration on Oct. 7.
U.S. ethanol production increased to an average of 923,000 barrels per day the week ending Oct. 2, up 42,000 barrels per day from an average of 881,000 barrels per day the previous week. When compared to the 963,000 barrels per day produced during the same week of 2019, production was down 40,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.
Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol fell to 19.672 million barrels the week ending Oct. 2, down 19,000 barrels when compared to the 19.691 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 1.552 million barrels.
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Oct 7, 2020
The U.S. exported more than 100.65 million gallons of ethanol and 1.02 million metric tons of distillers grains in August, according to data released by the USDA Foreign Agricultural Service on Oct. 6. Exports of both products were down from the same month of last year.
The 100.65 million gallons of ethanol exported in August was up from the 74.04 million gallons exported in July, but down from the 124.79 million gallons exported in August 2019.
The U.S. exported ethanol to nearly four dozen countries in August. Canada was the top destination for U.S. ethanol during the month at 35.98 million gallons, followed by India at 10.45 million gallons, and Nigeria at 9.79 million gallons.
The value of U.S. ethanol exports was at $163.82 million in August, up from $131.77 million in July, but down from $205.37 million in August 2019.
Total ethanol exports for the first eight months of 2020 reached 905.41 million gallons at a value of $1.57 billion, compared to 1.01 billion gallons at a value of $1.6 billion during the same period of 2019.
The 1.02 million metric tons of distillers grains exported in August was down from both the 1.08 million metric tons exported in July and the 1.15 million tons exported during August of last year.
The U.S. exported distillers grains to approximately 40 countries in August. Mexico was the top destination at 138,817 metric tons, followed by Vietnam at 131,854 metric tons and South Korea at 111,048 metric tons.
The value of U.S. distillers grains exports reached $208.73 million in August, down from $227.86 million in July and $237.37 million in August 2019.
Total distillers grains exports for the first eight months of 2020 reached 7.08 million metric tons at a value of $1.5 billion, compared to 7.36 million metric tons at a value of $1.54 billion during the same period of last year.
Additional data is available on the USDA FAS website.
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Sep 29, 2020
Jobs in the renewable energy sector reached 11.5 million globally in 2019, according to a report released by the International Renewable Energy Agency (IRENA) on Sept. 29. Bioenergy accounted for 3.58 million jobs, up from 3.18 million in 2018.
According to the report, liquid biofuels accounted for 2.475 million jobs, while solid biomass accounted for 764,000, biogas accounted for 342,000 and municipal and industrial waste accounted for 39,000.
IRENA’s data shows global biofuels production increased 5 percent in 2019, principally driven by a 13 percent expansion of biodiesel. Ethanol production increased by 2 percent. Indonesia overtook the U.S. and Brazil to become the world’s largest biodiesel producer, the report noted.
The majority of the 2.475 million liquid biofuel jobs were in the agriculture sector. Processing of feedstock into fuel accounts for fewer jobs, although those jobs generally required higher technical skills and offer better pay.
Ten countries accounted for 90 percent of global biofuel jobs, led by Brazil at 34 percent, followed by Indonesia, the U.S., Columbia, Thailand, Malaysia, China, Poland, Romania and the Philippines.
In the U.S., total renewable energy jobs were estimated at 755,600 last year. Liquid biofuels accounted for approximately 297,000 of those renewable energy jobs.
The report cites data showing U.S. biodiesel output fell by approximately 7 percent in 2019 to about 6.5 billion liters (1.71 billion gallons). IRENA said its estimate suggests U.S. biodiesel jobs fell to approximately 67,300 in 2019. U.S. ethanol production also fell last year, reaching 59.8 billion liters. U.S. ethanol employment for 2019 was estimated at 299,600 jobs.
A full copy of the report can be downloaded from the IRENA website.
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Sep 28, 2020
As Congress and the administration continue negotiations on another potential COVID-19 relief package, a new study by university economists finds that ethanol producers will experience roughly $8 billion in losses this year due to the pandemic’s impact on world fuel markets. The study, conducted by economists from the University of Florida and Arizona State University, was published recently in the Journal of Agricultural & Food Industrial Organization.
“The COVID-19 pandemic in 2020 had a major negative impact on U.S. ethanol, gasoline, and oil prices and production,” the authors found. “COVID-19 has had a major impact on ethanol production. The producer loss due to COVID-19 is $7 billion.”
The estimated economic loss grows to a range of $7.9 to $8.6 billion when unemployment effects are included. The authors acknowledge that those estimates likely “understate the cost of COVID-19” to the ethanol industry because the impact of the pandemic on co-product output, demand and prices is not included.
Renewable Fuels Association President and CEO Geoff Cooper said the new study corroborates the findings of an RFA analysis published in July, which found pandemic-related losses could be $7 billion or more in 2020. According to RFA, the study also underscores the importance of ensuring ethanol producers are not again left out of any stimulus package that may move forward in the weeks ahead.
“This new, independent study confirms what has already been made painfully clear to the 350,000 men and women whose jobs are supported by the ethanol industry,” Cooper said. “The COVID-19 pandemic caused fuel demand to plummet and forced scores of ethanol plants to shut down, resulting in steep economic losses for the industry. While market conditions have improved since the spring, the ethanol industry is still struggling to fully recover from the pandemic, and ethanol producers across the country remain under financial stress.”
Cooper urged lawmakers and the administration to ensure emergency relief for ethanol producers is included in any forthcoming coronavirus aid deal.
“There is strong bipartisan support for providing assistance to renewable fuel producers in both the House and Senate,” Cooper said. “The HEROES Act passed by the House in May included emergency relief provisions for ethanol producers, and a similar measure was introduced in the Senate by Sens. Grassley and Klobuchar. We remain hopeful that a fourth COVID-19 aid package, with emergency relief for ethanol producers, will finally be pushed over the goal line in the weeks ahead.”
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Sep 24, 2020
Rep. Cheri Bustos, D-Ill., on Sept. 24 introduced the Next Generation Fuels Act, a bill that establishes a minimum octane standard for gasoline and requires sources of added octane value to reduce carbon emissions by at least 30 percent when compared to baseline gasoline. The bill would also limit the use of harmful aromatics in meeting the new high-octane standard, as well as in current-market gasoline.
To accomplish its goals, the legislation would require the U.S. EPA to create a new 98 research octane number (RON) standard, limit reliance on toxic aromatic hydrocarbons, and update fuel and infrastructure regulations to expand the availability of mid-level ethanol blends. It would ensure parity in the regulation of gasoline volatility, correct the R-factor used in fuel economy testing, provide for an E30 fuel waiver, replace the EPA’s flawed MOVES model, and restore meaningful credit toward compliance with fuel economy and emissions standards for the production of flex fuel vehicles.
“For the last three and a half years, we have been forced to fight battle after battle and face this Administration’s broken promise after broken promise to ensure our country is meeting the full potential of biofuels,” Bustos said. “The Next Generation Fuels Act looks toward the future to make sure we bring an environmental lens to biofuels production, in order to increase demand while reducing carbon emissions.”
Representatives of the biofuels industry have spoken out in support of the bill.
Growth Energy is applauding Bustos for her push for high-octane, low carbon fuels. “There has never been a more urgent need to adopt higher octane, low-carbon ethanol blends in America’s fuel supply, as they are key to achieving clean, healthy air,” said Emily Skor, CEO of Growth Energy. “We applaud Congresswoman Bustos for charting a path forward that will unleash clean, affordable ethanol to drive decarbonization in our nation’s transportation fleet and save consumers money at the fuel pump.”
The Renewable Fuels Association called the bill the beginning of an exciting new era in transportation fuels policy. ““The Next Generation Fuels Act of 2020 provides a bold and innovative approach to reducing carbon emissions, improving engine efficiency and performance, protecting human health, and removing the arcane regulatory roadblocks that have hindered the expansion of cleaner, greener liquid fuels,” said Geoff Cooper, president and CEO of the RFA. “By establishing the roadmap for an orderly transition to high-octane, low-carbon fuels, this landmark legislation begins an exciting new era in transportation fuels policy. As the world’s top supplier of clean, affordable, low-carbon octane, the U.S. ethanol industry proudly and enthusiastically supports this legislation. We thank Rep. Bustos for her thoughtful leadership and determined efforts to craft and introduce this bill, and we look forward to working together to make this bold vision a reality.”
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