In the News
American Coalition for Ethanol
Dec 8, 2020
Sioux Falls, SD – The Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union today filed a brief challenging EPA’s August 2019 decision to exempt 31 small refineries from their obligations to comply with the Renewable Fuel Standard in 2018. Collectively known as the Biofuels Coalition for this case, the group submitted its filing to the D.C. Circuit Court of Appeals, arguing that EPA lacked the authority to issue such exemptions and that it acted in an arbitrary and capricious manner in attempting to do so.
In its brief, the Coalition asserts some of the same arguments that the Renewable Fuels Association, NCGA, NFU, and ACE successfully made in the Tenth Circuit Court of Appeals against three small refinery exemptions, including the fact that EPA lacked the authority to extend small refinery exemptions that had lapsed in earlier years. The Coalition also took on EPA’s failure to provide its own refinery-by-refinery analysis to support a finding of a disproportionate economic hardship, particularly in the 20 instances where EPA decided to grant a full exemption despite the Department of Energy recommending that only a partial exemption be granted. In addition, the Biofuels Coalition posed the same question on which the Tenth Circuit found EPA inexcusably silent: If all RFS compliance costs are ultimately passed through to end users and recovered, as EPA has repeatedly maintained, how is it that any small refinery can suffer a disproportionate economic hardship?
“Among all of EPA’s indefensible actions surrounding small refinery exemptions in recent years, the Agency’s two-page decision to grant 31 waivers from 2018 RFS compliance really takes the cake. Enough is enough,” Coalition representatives said. “The EPA had absolutely no legal basis for continuing to destroy demand for renewable fuels, which is contrary to the intent of Congress for the RFS program. When it adopted the RFS in 2005, Congress clearly intended for small refinery exemptions to be temporary in nature. Yet, 15 years later, some refiners—most of whom have readily complied with RFS obligations in the past—are trying to claim they need more time to prepare for compliance with RFS requirements. If these exemptions were meant to be a ‘bridge to compliance’, as concluded by the courts, it should be obvious that we all crossed that bridge many years ago.”
In prior years, EPA would respond separately to each small refinery exemption petition with several pages of analysis on the individual refinery’s unique circumstances. However, for the 2018 exemptions, EPA announced its decisions on more than three dozen refinery petitions in a single, two-page memorandum issued by Acting Assistant Administrator Anne Idsal. That brevity alone reflects EPA’s reflexive reaction to exempt oil interests from compliance whenever they asked without justification.
Read the original story here.
Dec 7, 2020
According to the latest analysis from the Renewable Fuels Association, U.S. ethanol exports in October rocketed 64% higher to 126.5 million gallons (mg), the largest volume since March.
Shipments crossing the border to Canada rebounded by 11% (35.6 mg), equivalent to 28% of total U.S. ethanol exports. The Netherlands purchased record gallons (24.2 mg) while sales to South Korea jumped to the largest monthly volume this year (15.0 mg). Other larger markets included India (11.6 mg), Colombia (11.1 mg), Norway (6.6 mg, a record high), Finland (3.8 mg), Nigeria (3.8 mg), Peru (3.5 mg), and Mexico (3.4 mg). Exports to Brazil were minimal for the fifth straight month. Global year-to-date exports of U.S. ethanol totaled 1.109 billion gallons, or 9% less than this time a year ago.
On the other hand, RFA reports that exports of dried distillers grains (DDGS) declined 18% in October to 951,500 metric tons (mt). While exports to the largest destinations moved higher, shipments to Japan scaled back after hitting a record high in September, accounting for half of the total month-on-month decline.
Read the original story here.
Dec 1, 2020
A company based in Chicago has developed a way to get diesel engines to run completely on ethanol.
BJ Johnson, co-founder and CEO of ClearFlame Engine Technologies, says their mission is to decrease tailpipe emissions and build a low-carbon future.
“What our solution allows is to maintain all of the performance, fuel economy, torque, and practicality of the diesel engine design, but without the need for any diesel fuel and replacing it with 100 percent renewable ethanol. Which not only lowers your fuel cost, but also drastically lowers your emissions.”
He tells Brownfield they have validated their work on a commercial engine platform and are starting the process of transitioning that to field and on-road demonstrations.
Johnson says if just 20 percent of U.S. diesel trucks converted to ClearFlame technology, carbon reduction would eclipse 40 percent and ethanol demand would double.
“So the demand is absolutely limitless almost, and the potential for rapid carbon mitigation is also unmatched by any other solution out there.”
Johnson says when they’ve finalized commercialization, ClearFlame will look to secure long-term agreements with engine manufacturers.
Read the original story here.
Dec 1, 2020
The U.S. EPA has missed its Nov. 30 statutory deadline to set the 2021 renewable volume obligations (RVOs) under the Renewable Fuel Standard, as well as the 2021 RVO for biomass-based diesel. While the delay was not unexpected, representatives of the biofuels industry are expressing frustration that the EPA has, to date, failed to even release an initial proposal for public comment.
Under statute, the EPA is required to finalize annual RFS blending requirements for each compliance year by Nov. 30 of the preceding year. The RVOs for biomass-based diesel are finalized one year earlier. To meet that deadline, a proposed rule is typical released in the spring or early summer, with a public comment period that closes several months before the statutory deadline.
The EPA delivered its proposed rule to set the 2021 RVO and the 2022 RVO for biomass-based diesel to the White House Office of Management and Budget in mid-May. Such proposed rules are typically released for public comment within a month or two. This year, however, OMB review of the proposed rule is still listed as ongoing nearly seven months later.
EPA Administrator Andrew Wheeler briefly addressed the expected delay in setting the 2021 RVOs during a visit to Wisconsin in August. At that time, he said the agency is facing unusual challenges in setting the 2021 RVO due to the COVID-19 pandemic. While the EPA did send a proposed rule to the OMB in May, Wheeler said the agency started work on that rulemaking package before COVID-19 hit. “The entire landscape has changed since then,” Wheeler said at that time, noting both the refining and ethanol sectors have been hard hit by pandemic. He indicated the EPA was still trying to go through all the data to determine what effect COVID-19 will have on the 2021 RVOs. While Wheeler said it did not look like the rulemaking will be completed by its Nov. 30 statutory deadline, he also stressed the rulemaking will also not be two years late.
The EPA did not immediately respond to a request submitted on Nov. 30 seeking information on an updated RFS rulemaking timeline.
The Renewable Fuels Association said it makes more sense at this point to let the upcoming Biden administration handle the 2021 RVO rulemaking. “It shouldn’t come as a surprise to anyone that EPA is missing its statutory deadline for publishing the final rule for 2021 RVOs, given that we still haven’t even seen a proposed rule,” said Geoff Cooper, president and CEO of the RFA. “And even if a proposed rule was released today, it would be next to impossible to have a final rule done by the end of the calendar year, or even by inauguration day. At this point, it likely makes more sense to let the new administration handle the 2021 RVO rulemaking process entirely. President-elect Biden has correctly noted that the RFS waivers granted by the current EPA have ‘severely cut ethanol production, costing farmers income and ethanol plant workers their jobs.’* Thus, we are confident that the new EPA administrator, whoever that may end up being, will stop doing secret favors for oil refiners and ensure the RFS is implemented in a way that is consistent with the law and Congressional intent. We know it may take a few months for the new administration to get a final 2021 RVO rule done, but in the meantime, the statute is crystal clear that refiners must blend at least 15 billion gallons of conventional renewable fuel in 2021. So, while there may be some uncertainty around where the final advanced and cellulosic volume requirements may end up, the marketplace should be able to enter 2021 with some level of confidence around the conventional renewable fuel and biomass-based diesel requirements.”
The American Coalition for Ethanol criticized EPA’s failure to release even a proposed rule before the Nov. 30 statutory deadline. “While we have long understood the fact that EPA would miss the statutory deadline for finalizing the 2021 blending volumes, EPA’s utter failure to even put out the proposal is unacceptable,” said Brian Jennings, CEO of Ace. “Each day that passes with EPA failing to deny pending small refinery exemptions, dragging their feet on the 2021 RVOs, and ignoring the precedent set by the Tenth Circuit Court to rein-in future SREs creates more uncertainty about the future for the ethanol industry that has already suffered too much.”
The National Biodiesel Board is also criticizing the EPA for its delay. “This is absolutely the wrong time for EPA to leave the 2021 RFS rule to write itself,” said Paul Winters, director of public affairs and federal communications at the NBB. “Next year, the agency will have to both establish the annual 2022 RFS obligations and set all RFS volumes for 2023. And at the same time EPA will have to address the misuse of small refinery exemptions and the remand of the 2016 RFS rule.”
Read the original story here.
Nov 25, 2020
U.S. fuel ethanol production increased by nearly 3 percent the week ending Nov. 20, according to data released by the U.S. Energy Information Administration on Nov. 25. Stocks expanded by more than 3 percent, and for the first time in several months were up when compared to the same period of 2019.
U.S. ethanol production increased to an average of 990,000 barrels per day the week ending Nov. 20, up 28,000 barrels per day when compared to the 962,000 barrels per day of production reported for the previous week. The 990,000 barrels per day of production reported for the week ending Nov. 20 is the highest weekly average production level reported by the EIA since the week ending March 20, when production was at 1.005 million barrels per day. When compared to the 1.059 million barrels per day of production reported for the same week of last year, production was down 69,000 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 fuels began to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks for fuel ethanol increased to 20.866 million barrels the week ending Nov. 20, up 663,000 barrels when compared to the 20.203 million barrels of stocks 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, stocks were up 589,000.
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Nov 20, 2020
Pfizer on Friday said it will apply to the FDA for emergency use authorization for its coronavirus vaccine. The drug giant hopes to produce up to 50 million doses this year, with about half going to the U.S.
Moderna will also apply soon for the same emergency use authorization and expects to deliver about 20 million doses in the U.S. by the end of the year. The companies are trying to figure out the best way to keep the product safe and effective, but it's an icy challenge.
At Acme Dry Ice in Cambridge, Massachusetts, owner Marc Savenor and his team are working around the clock to provide dry ice to vaccine manufacturers.
"I never thought I'd be saving lives. But it feels really good," Savenor told "CBS This Morning Saturday" co-host Dana Jacobson.
Colder than Antarctica in winter, dry ice is critical to transporting and storing the coronavirus vaccines.
"The demand is definitely higher right now for the vaccine makers because as fast as they're making the vaccine, they're shipping it out," Savenor said.
Dry ice is made from carbon dioxide, a by-product of ethanol production. With Americans driving less in the wake of the pandemic, ethanol plants shut down, resulting in a shortage of carbon dioxide over the summer.
"Without CO2, it's like being a McDonald's without hamburgers," Savenor said. "Right now, we happen to have a great supply chain of CO2. You know, it's always scary to see what the demand is going to be with the vaccine."
With the help of dry ice, vaccines will be shipped from manufacturing facilities to freezer farms like Pfizer's in Kalamazoo, Michigan and then to vaccination sites across the country. The biggest challenge for distribution is "doing so much in parallel," said Tanya Alcorn, vice president of Pfizer's BioPharma Global Supply Chain. "We don't have all the answers."
Pfizer's vaccine needs to be kept at about 94 degrees below zero Fahrenheit. So, it developed a "thermal shipper" to transport and store its vaccine at sub-arctic temperatures.
"So the cool box — at least we think it's cool — it's a shipper box about the size of, like, a carry-on suitcase," Alcorn said. "And then there's dry ice that goes around it. And then it has actually a device within it that has a continuous GPS and temperature monitor. So we will be able to have continuous eyes on every shipper."
Each "cool box" contains a minimum of about 1,000 vaccine doses.
But, "that's a problem," according to Tim Size, the executive director of the Rural Wisconsin Health Cooperative, which represents 43 rural hospitals across the state.
"If you can ship 1,000, you can ship 200. It's more expensive. It's more cumbersome," Size said.
The nearly 1,000 minimum dose requirement is a challenge for rural areas. It means rural health care workers may have to travel to big cities to receive the vaccine, all while tackling a new wave of coronavirus infections.
"We're under a huge surge," Size said. "So for them to have to travel and maybe take a day off of work to travel to a regional center to then stand in line to get vaccinated, go back to work, and then two weeks later go back, taking another day off — this makes the logistics really bad."
Pfizer said they are working on a smaller shipper with fewer doses, which should be available early next year.
Ultra-cold freezers can help vaccine doses survive longer. But, Size said those are out of reach financially for most rural hospitals.
"There's a lot of other things they could do with $15,000 or $20,000," he said.
Moderna said its vaccine is stable at standard refrigeration temperatures and can be handled using existing infrastructure at pharmacies and doctor's offices.
That could be a game-changer, Size said, but he wants rural areas to have equal access to all the vaccines.
"We have a tremendous need to bridge rural America back together in our country. If basically rural's getting the message, 'We'll start with urban,' even if it's for reasonable logistical reasons, it's bad optics," he said. "I don't think anybody wants to give a message that rural Wisconsin or rural America is second class."
Pfizer told CBS News one of its fundamental principles is equitable access to their vaccine for all communities. Alcorn acknowledged they don't have all the answers yet and said Pfizer is working with Operation Warp Speed to make sure it can get doses out to rural communities.
Read the original story here.
Nov 23, 2020
Today, a coalition of the nation’s largest biofuels and agricultural trade groups filed a motion in the U.S. Court of Appeals in the District of Columbia asking the court to enforce its 2017 decision requiring the U.S. Environmental Protection Agency (EPA) to address its improper waiver of 500 million gallons of biofuel demand in the 2016 renewable volume obligation (RVO).
The coalition, which includes the Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, National Farmers Union, and National Sorghum Producers, issued a statement following the filing:
“It is simply unconscionable that EPA would so brazenly ignore a federal court’s order. The agency must do right by America’s farmers and biofuel producers and supporters. Together, our coalition represents millions of rural families, who should not have to resort to more court proceedings to hold EPA accountable to the law. It’s well past overdue that EPA restore the 500 million gallons and focus on restoring integrity to the Renewable Fuel Standard.”
In the July 2017 ruling of the case Americans for Clean Energy et al. v. EPA et al., the court invalidated the EPA’s improper waiver of 500 million gallons in the 2016 RVO and ordered EPA to revisit the rule. The court held that EPA’s interpretation of the “inadequate domestic supply” waiver provision “runs contrary to how the Renewable Fuel Program is supposed to work.” To date, EPA has failed to open any proceedings to reconsider the 2016 RVO, and has not restored the 500 million lost RIN gallons.
In the motion filed today, the coalition asks the court to:
- Require EPA to issue a 500 million gallon “curative obligation” on obligated parties to make up for the lost gallons;
- Require EPA to do so no more than 6 months after the court’s order;
- Require obligated parties to show compliance with the additional obligations no more than 3 months after EPA issues the curative obligation; and
- Declare that it will not extend these deadlines.
Read the motion as filed here.
Read the original story here.
Nov 16, 2020
The global biofuels industry has been strongly impacted by the COVID-19 pandemic, according to a report released by the International Energy Agency in early November, with production down approximately 11.6 percent when compared to 2019.
The IEA predicts global transport biofuel production will be at 144 billion liters (38.04 billion gallons) in 2020, down 11.6 percent from the record set last year and the first reduction in annual production in two decades. Prior to the COVID-19 pandemic, the IEA predicted a 3 percent growth in biofuel production for 2020.
Global ethanol production is expected to be at 98 billion liters this year, down 14.5 percent from 115 billion liters in 2019. About 80 percent of that reduction is expected to occur in Brazil and the U.S., according to the IEA. Global biodiesel production is expected to reach 46 billion liters this year, down 5 percent from 2019. Most of that reduction is expected in European markets.
If demand for transportation fuel rebounds to near pre-pandemic levels and policy support in key markets continues to expand, the IEA predicts that global production of transportation biofuels could rebound to the 2019 level of production in 2021, at approximately 162 billion liters. Production is expected to grow by an additional 4 percent in 2022 to 169 billion liters. The IEA said that the majority of that growth is expected to occur in Asian and South American countries.
During the 2023 to 2025 time period, the IEA said average global output of biofuels is expected to be at 182 billion liters. Ethanol is expected to account for 109 billion liters of that volume, with Brazil, China and India expected to be key growth markets. Biodiesel and renewable diesel production is expected to reach 63 billion liters annually over the 2023 to 2025 time period, up 30 percent from 2019. According to the IEA, expanding renewable diesel production in the U.S. and Singapore is expected to account for more than half of that increase.
A full copy of the IEA’s Renewables 2020 report can be downloaded form the agency’s website.
Read the original story here.
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Nov 16, 2020
ELLISVILLE, Mo. — The ethanol industry is familiar with adversity and the recently elected chairperson of the Renewable Fuels Association believes a rebound is on the horizon.
Jeanne McCaherty, CEO of Guardian Energy Management, was selected as the new chair at the RFA’s annual meeting. McCaherty becomes the first female chairperson in the organization’s history and first among any national ethanol trade association.
As CEO of Guardian Energy Management, McCaherty, of Prior Lake, Minnesota, provides executive management for Guardian Energy LLC, Guardian Energy Holdings LLC and Hankinson Renewable Energy LLC, three ethanol biorefining businesses.
She has a master’s degree in biochemistry from the University of Missouri and serves on the board of directors for the Renewable Product Marketing Group LLC and the board of directors for the Minnesota Biofuels Association.
McCaherty, a longtime proponent and advocate for low-carbon renewable fuels, also serves on the Minnesota Governor’s Biofuels Council to develop recommendations to increase the incorporation of biofuels in transportation fuels in Minnesota. She succeeds Neil Koehler, co-founder and co-CEO of Pacific Ethanol, in chairing the RFA board.
“Renewable fuels have a critically important role to play in improving liquid transportation fuels. I am excited to work with the members and staff of the RFA to continue to position renewable fuels and co-products to support rural economies, improve air quality, and provide better options for consumers,” McCaherty said.
She spoke of the challenges the industry faces and federal actions that show promise for the future in a recent podcast.
“The ethanol industry is really a reasonably new industry overall and it has had a lot of very highs and a lot of very lows in the history and the evolution of that business. I would say that 2020 probably has been the low point for the industry. The pandemic has been challenging for the ethanol industry the same as it has for all other industries,” McCaherty said.
“At one point in the ethanol industry, we were down demand-wise by 45%, so prices tumbled to record lows and we’ve lost somewhere between $7 billion and $10 billion in revenue due to COVID.
“In that kind of a year it’s very difficult to say it’s a really high point in the ethanol industry, but this industry is very familiar with adversity. Many of the owners/investors are corn producers. They’re also investors in ethanol and they’re used to adversity. This isn’t something that will keep them down.”
Good News
In the midst of the pandemic, there has been good news on the ethanol front.
U.S. Department of Agriculture Secretary Sonny Perdue announced Oct. 8 a series of grants as part of Higher Blends Infrastructure Incentive Program. The agency is investing at least $22 million in grant funding to increase demand for ethanol and biodiesel.
USDA said more funding may be available from a total $100 million pool, with the $22 million projected to increase demand by more than 150 million gallons. HBIIP helps fuel distribution centers to convert to higher blends through equipment and infrastructure improvements cost sharing.
Two bills in the U.S. House — the Next Generation Fuels Act and the Renewable Fuels Standard Integrity Act — also would benefit the ethanol industry if passed.
“The Next Generation Fuels Act establishes a 98 (research octane number) fuel standard for the highest octane and also speaks to the lower greenhouse gas emissions. So, low carbon while high octane and we’re pretty excited about that. It puts a limit on the aromatics and really pushes higher ethanol blends going forward,” McCaherty noted.
“That’s one we’ll be working on and helping to move that further. It has a number of other conditions in it, including things around the Reid vapor pressure and some of the (compliance with fuel economy) credits around flex-fuel vehicles. It’s very positive for the ethanol industry and one that we’re very excited about.”
The RFS Integrity Act aims at requiring more transparency for companies seeking Small Refinery Exemptions through the EPA. The bill has been rolled into a new House energy bill, the Clean Economy Jobs and Innovation Act.
“That would set a deadline for refiners to request their exemptions from the RFS and would require the EPA to publicly release the name of those refiners requesting a waiver so that we get more transparency around SREs, how they’re working and make sure the RFS is upheld,” McCaherty said.
No Relief
Congress has yet to include the ethanol industry in any COVID-19 relief packages and McCaherty addressed that issue.
“It means obviously that we’re going to continue on without aid. It’s a very difficult time. There’s $7 billion to $10 billion in lost revenue for the ethanol industry that we believe has been a result of COVID. It’s been a very difficult time,” she said.
“We’ve had plants that have been idled. We’ve had some of the plants that have had to furlough their folks. Some are still not back up and running. The industry is essential and critical for U.S., but at the some time if a COVID relief package isn’t in the cards the industry will continue and we’ll continue to put ourselves on solid footing and move forward.”
In light of this year’s challenges, McCaherty commented on the general mood of ethanol producers.
“This is a group that’s used to adversity. They’re used to hard work and hard times. This has not been an easy year for anyone. I think everybody is a little worn out, not just ethanol producers, but everyone is a little bit worn out over COVID, but at the same time I think everybody realizes that it’s not time to sit down, but time to roll up our sleeves and continue to work,” she said.
“Ethanol is critical to these rural economies. Many of our producers also have stakes in the ethanol world and I think the mood generally is let’s get to work, let’s continue to work at positioning the ethanol industry to where it belongs.”
Read the original story here.
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.
Read the original story here.
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.
Read the original story here.
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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