In the News

Renewable Fuels Association

Oct 5, 2023

U.S. ethanol exports scaled back 10% to 102.3 million gallons (mg)—a low for the year yet the eighth straight month to top 100 mg. Canada was our largest destination for the 29th consecutive month with exports of 62.4 mg, just 0.2% shy of last month’s record. As such, our northern neighbor accounted for nearly two-thirds of total August sales. Exports to the United Kingdom pared back 19% to 13.5 mg. Colombia increased its U.S. imports by 151% to 10.7 mg, the largest monthly volume in almost 3 years. Shipments to the European Union dropped 24% to 5.4 mg, the lowest imports this year. Essentially all remaining ethanol exports were destined for Peru (4.5 mg), Mexico (2.1 mg), Singapore (2.0 mg), and Jamaica (1.3 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 920.5 mg, which lags 7% behind last year at this time.

The U.S. imported 10.5 mg of undenatured ethanol from Brazil and minimal gallons of denatured ethanol from Austria and France. This was the first month of substantive imports recorded in 2023.

Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, eased 5% to 947,326 metric tons (mt). A quarter of shipments landed in Mexico (234,674 mt, up 27% from July), our largest DDGS market for the 14th consecutive month. Exports to Vietnam lifted for the 7th consecutive month, up 6% to 131,232 mt. DDGS exports to Indonesia tightened 28% (87,015 mt), but South Korea sales rebounded 29% (83,425 mt), and Morocco purchased record volumes (59,367 mt). Rounding out our top ten customers in August were Canada (59,097 mt), New Zealand (30,799 mt), Colombia (28,887 mt), Taiwan (28,832 mt), and China (27,298 mt). Year-to-date U.S. DDGS exports total 7.06 million mt, which lags 9% behind last year at this time.

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Ethanol Producer Magazine

Sep 27, 2023

The Federal Aviation Administration on Sept. 25 launched a new competitive grant program that, in part, can support projects to add sustainable aviation fuel (SAF) production capacity to existing renewable diesel and ethanol plants. 

The newly launched $300 million funding opportunity aims to support projects to reduce carbon pollution from aviation. Approximately $245 million of that funding will support sustainable aviation fuel (SAF) infrastructure projects, with $47 million allocated to support low-emission aviation technology projects. 

The funding is being offered through the Fueling Aviation’s Sustainable Transition program, which was established by the Inflation Reduction Act.  The $245 million in available FAST-SAF grants will focus on producing, transporting and blending SAF with the goal of building up regional SAF supply chains and increasing SAF use. The $47 million in available FAST-TECH grants will accelerate aviation technology projects that reduce greenhouse gas (GHG) emissions, improve airport fuel efficiency, and increase the usage of SAF. 

Eligible entities for the program are broad, including airports, air carriers, universities, aviation and aerospace companies, state and local governments and nonprofit organizations. The FAA opened a public comment period  related to the the FAST-SAF and FAST-TECH program earlier this year.

FAS-SAF grants can support a wide range of projects related to SAF production, SAF transportation, SAF blending and SAF storage. Funding opportunity documents published by the FAA specifically note that FAST-SAF funds can be used to support projects to upgrade existing fuel production facilities to produce SAF; add equipment to existing renewable diesel plants to enable SAF production; and install conversion equipment at ethanol plants to produce SAF via an alcohol-to-jet pathway.

Applications for the FAST-SAF and FAST-TECH programs are due Nov. 27. Additional information is available on the FAA website.

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Ethanol Producer Magazine

Sept 25, 2023

Corn use for fuel ethanol production in July was up when compared to both the previous month and the prior year, according to the September edition of the USDA National Agricultural Service’s Grain Crushings and Co-Products Production Report. 

Total corn consumed for alcohol and other uses was at 504 million bushels in July, up 2 precent when compared to June and up 1 percent from July 2022. Usage included 92 percent for alcohol and 8 percent for other purposes. 

Corn consumed for fuel alcohol production reached 454 million bushels in July, up 3 percent when compared to the previous month and up 2 percent when compared to the same month of last year. Corn consumed for dry milling fuel production and wet milling fuel production was 91.9 percent and 8.1 percent, respectively. 

Corn consumed for industrial alcohol production reached 7.19 million bushels in July, up from 6.26 million bushels in in June and 4.75 million bushels in July of last year. Corn consumed for beverage alcohol fell to 3.4 million bushels in July, down from 5.41 million bushels the previous month and 4.88 million bushels in July 2022.

At dry mills, condensed distillers solubles production was at 110,547 tons in July, down from 117,041 tons the previous month, but up from 94,830 tons in July of last year. Corn oil production was at 187,808 tons, down from 184,370 tons in June and 187,853 tons in July 2022. Distillers dried grains production expanded to 404,109 tons, up from both 390,664 tons in June and 334,122 tons in July of last year. Distillers dried grains with solubles production fell to 1.78 million tons, down from 1.79 million the previous month and 1.93 million tons in July of last year. Distillers wet grains production reached 1.31 million tons, up from both 1.3 million tons in June and 1.28 million tons in July 2022. Modified distillers grains production was at 430,169 tons, up from 414,953 tons the previous month, but down from 495,386 tons in July of last year. 

At wet mills, corn germ meal production was at 48,269 tons in July, up from 45,709 tons in June, but down from 57,800 tons in July 2022. Corn gluten feed production was at 277,997 tons, up from both 270,060 tons in June and 271,334 tons in July of last year. Corn gluten meal production expanded to 119,450 tons, up from both 110,430 tons the previous month and 105,796 tons in July 2022. Wet corn gluten feed production reached 224,484 tons, up from 179,905 tons in June and 221,764 tons in July of last year. 

Carbon dioxide captured at both dry and wet mills fell to 207,926 tons in July, down from 225,597 tons the previous month and 240,189 tons in July 2022. 

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National Corn Growers Association

Sep 15, 2023

TheNational Corn Growers Association (NCGA) sent a  letter  this week to the Environmental Protection Agency addressing recent concerns raised by the agency’s scientific advisory board about the environmental benefits of ethanol.

In a letter sent to EPA Administrator Michael Regan on Thursday, NCGA CEO Neil Caskey noted that the research shows unequivocally that ethanol is important to addressing climate change.

“There are no shortage of studies on the environmental benefits of corn ethanol,” Caskey said. “The Department of Energy’s Argonne National Laboratory, for example, has conducted extensive research on the matter and concluded that corn ethanol has reduced GHG emissions in the U.S. by 544 million metric tons from 2005- 2019 and that the feedstock’s carbon intensity is 44 percent lower than that of petroleum gasoline.”

The letter was sent after EPA’s scientific advisory board submitted draft commentary on theVolume Requirements for 2023 and Beyond under the Renewable Fuel Standard Program. In the commentary, the advisory board questions ethanol’s ability to significantly lower greenhouse gas emissions and raises concerns that the production of ethanol increases land use.
 

The letter noted that corn growers are doing more with less land.

“American farmers planted an estimated 94.1 million acres of corn in 2023, which falls short of the more than 100 million acres corn farmers planted a century ago,” Caskey noted. “In the past decade, U.S. corn production has been over six times the production of the 1930s with fewer corn acres.”

Caskey also highlighted ethanol’s importance in advancing the Biden administration’s climate agenda.

“It is important to note that any decision that hampers the use of these environmentally friendly products would complicate President Biden’s ambitious climate goals, which will almost certainly require the use of biofuels, such as corn ethanol, to be successful,” he said.

Caskey will provide verbal remarks before the SAB later this month.

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Ethanol Producer Magazine

Sep 18, 2023

Potential policy changes in Asia could create massive demand for imported ethanol that U.S. producers are ready to meet. The U.S. Grains Council conducted several events across the continent this summer to support that goal by informing local government officials and industry leaders about the positive impact of implementing higher ethanol blends in their countries.

The Vietnam Ministry of Industry and Trade, Vietnam Petroleum Association and the USGC jointly organized the first iteration of Decarbonize Asia: Vietnam Biofuels Forum in July to discuss technical, commercial and environmental considerations for the expansion of fuel ethanol use in the country.

Approximately 150 participants, including regulators, policymakers, Vietnamese biofuel producers and fuel companies, international vehicle manufacturers, technology providers and academia, attended the forum. Additional presentations focused on Vietnam infrastructure and vehicle compatibility with E5 and E10; Southeast Asia ethanol trends and developments; U.S. ethanol sustainability; ethanol-to-jet fuel pathways; carbon sequestration technologies; and consumer sentiment about ethanol in Vietnam.

The forum was an opportunity to showcase the benefits of U.S. biofuels while Vietnam’s government is evaluating a potential policy action to migrate its E5 RON92 mandate to all grades of gasoline. An E5 mandate in Vietnam would increase ethanol demand by 400 percent and create a potential export market of 95 million gallons per year for U.S. fuel ethanol.

The strategic ethanol partnership between Vietnam and the United States is a strong example of how our two countries can work together to find mutually beneficial solutions to decarbonize road transportation, bolster fuel security, improve human health and generate further investment against the backdrop of the clean energy transition.

The international transportation sector, a significant contributor to carbon emissions, plays a crucial role in this process. The urgency to reduce carbon emissions has led more than 60 countries worldwide to adopt low carbon fuel policies to capture the environmental, human health and economic benefits of ethanol.

The Taiwanese government, motivated by the effects of climate change, has set an ambitious goal of achieving net-zero carbon emissions by 2050. To accelerate progress, the council held a policy discussion meeting, the Diversified Carbon Reduction & Sustainable Development Forum in Taipei, Taiwan, in June.

The meeting attracted industry representatives from sectors including energy, transportation, environmental protection and the vehicle industry. 

The USGC’s Taiwan office is consolidating these recommendations into a comprehensive policy proposal on behalf of the industry. Additionally, the United States’ experience in net-zero transportation policy, specifically in the low-carbon fuel domain, is expected to advance cooperation between Taiwan and the United States and open avenues for U.S. producers to supply the country’s growing interest and need for biofuels.

The council has also been active with programming in Korea and Japan, laying the groundwork for higher biofuel blends throughout the region. By building strong relationships and establishing a track record of continued engagement in Asia, U.S. ethanol producers can feel confident about the emergence of new and larger global marketplaces with ample opportunities for sales.

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Ethanol Producer Magazine

Sep 13, 2023

according to date released by the U.S. Energy Information Administration on Sept. 13. Ethanol stocks were down 2 percent and exports were down 17 percent.

Ethanol production averaged 1.039 million barrels per day the week ending Sept. 8, up 27,000 barrels per day when compared to the 1.012 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 Sept. 8 was up 76,000 barrels per day. 

Weekly ending stocks of fuel ethanol fell to 21.171 million barrels the week ending Sept. 8, down 450,000 barrels when compared to the 21.621 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Sept. 8 were down 1.672 million barrels. 

Fuel ethanol exports averaged 68,000 barrels per day the week ending Sept. 8, down 14,000 barrels per day when compared to the 82,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. According to EIA data, no fuel ethanol imports were reported for the week ending Sept. 8.

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Reuters

Sep 12, 2023

The U.S. Department of Agriculture will spend up to $400,000 to adjust a federal greenhouse gas (GHG) emissions model to ensure that aviation fuel made from corn-based ethanol is eligible for hefty subsidies, Agriculture Secretary Tom Vilsack said at a conference on Tuesday.

"We’re working on the modeling to make sure that there’s a broad array of feedstocks that can qualify, including ethanol," he said at a conference hosted by biofuels lobby group Growth Energy.

Vilsack's comments are his latest effort to calm a biofuel industry concerned it will be left out of the multibillion-dollar market for sustainable aviation fuel (SAF) airlines and the administration of President Joe Biden see as key to reducing transportation emissions.

Last year's Inflation Reduction Act included lucrative tax credits for SAF producers who can show with an approved scientific model that their fuel emits 50% less greenhouse gas than gasoline.

The  Biden administration is divided  over whether to grant a request from the biofuels industry to allow the use of the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.

Environmental groups say it underestimates emissions from the displacement of farmland or vegetation to grow crops for biofuels.

Vilsack, who supports the use of GREET, said the USDA is making adjustments to the model.

"We’re spending our own resources at USDA to make sure the GREET model is where it needs to be," he said.

The agency has identified between $300,000 and $400,000 in funds for the effort, which will be done by the end of the year, Vilsack said.

The USDA did not respond to questions about what specific adjustments the agency is making to GREET.

Vilsack also emphasized his efforts to build support for the GREET model in meetings with the secretaries of transportation, environment, and treasury.

A decision on the modeling issue is expected from the Treasury Department in December, Reuters reported on Sept. 6.

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Renewable Fuels Association

Sep 12, 2023

With Congress back in session after the August recess, a new survey from the polling firm Morning Consult found continued strong voter support for policies promoting the use of lower-cost, lower-carbon American-made ethanol. In the latest results, registered voters also indicated robust support for specific legislation to allow the year-round sale of E15 (fuel containing 15 percent ethanol), as well as policy that would promote the production of more flex fuel vehicles capable of using the lower-cost E85 fuel blend.

“Voters across the country clearly want to see solutions that will help them save money at the pump while also improving the environment and public health. Consumers want greater access to lower-carbon, lower-cost renewable fuels,” said Renewable Fuels Association President and CEO Geoff Cooper. “This nationwide poll of more than 2,000 voters shows strong support for important legislative proposals that are currently pending in the House and Senate. We are calling on Congress to listen to their constituents and get this legislation over the goal line before the end of the year.  Now is the time for action.”   

Among the results:

  • 62 percent of those surveyed had a favorable opinion of ethanol, while only 17 percent had an unfavorable opinion; of those who have an opinion either way on ethanol, nearly four out of five voters (79 percent) support it.
  • 67 percent support the Renewable Fuel Standard, with 19 percent offering no opinion and 14 percent opposed. This is the highest percentage of support since RFA first began surveys with Morning Consult in 2016.
  • 67 percent also support the United States increasing the availability of the E15 blend, and 62 percent believe it is very or somewhat important to promote the production and sale of flex fuel vehicles (FFVs). Only 14 percent opposed the expansion of E15, and just one out of five respondents said it isn’t important to increase production of FFVs.

When it comes to specific legislation now pending before Congress:

  • 63 percent support the  Flex Fuel Fairness Act,  which would encourage automakers to expand production of flex fuel vehicles that can run on E85. The bill would create an incentive for flex fuel vehicle production similar to the incentive already in place to encourage automakers to expand production of electric vehicles.
  • 61 percent support the  Consumer and Fuel Retailer Choice Act,  which would allow E15 to permanently be sold nationwide on a year-round basis. Only 15 percent of voters oppose the legislation.
  • Likewise, 61 percent support the  Next Generation Fuels Act,  which would establish a high-octane, low-carbon fuel standard, with just 14 percent expression opposition.

The online survey was conducted of 2,013 registered voters Sept. 6-9, and has a 2 percent margin of error.  Click here for the topline results  of this national tracking poll.

Read the original press release here