In the News

Renewable Fuels Association 

Nov 22, 2022

In a letter sent yesterday to U.S. Senate and House leadership, a broad coalition of energy and agriculture organizations called on Congress to quickly adopt legislation that would resolve inconsistent fuel volatility regulations. Specifically, the groups expressed support for legislation that would result in equal regulatory treatment for all gasoline blends containing 10 percent ethanol (E10) or more, including gasoline with 15 percent ethanol (E15). Such legislation would permanently remove the regulatory barrier that has historically made it extremely difficult for retailers to offer E15 in the summertime.

The letter, sent to Senate Leaders Chuck Schumer and Mitch McConnell, House Speaker Nancy Pelosi, and House Minority Leader Kevin McCarthy, was signed by the Renewable Fuels Association, American Petroleum Institute, American Farm Bureau Federation, Association of Equipment Manufacturers, Growth Energy, National Association of Convenience Stores, National Corn Growers Association, National Council of Farmer Cooperatives, National Farmers Union, National Sorghum Producers, NATSO, representing truck stops and travel plazas, and SIGMA: America's Leading Fuel Marketers.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” according to the letter. “Our groups have come together—for the first time ever—to support legislation that would resolve this issue once and for all.”

The groups are advocating for a simple legislative fix that would provide equal treatment nationwide to all gasoline blends containing 10 percent ethanol or more, while simultaneously superseding state regulatory action recently sought by a group of governors. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape,” the letter says.

“In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 that would continue to resurface every summer. Thus, we urge Congress to act quickly to adopt legislation that will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations.”

Read the original news release here

Renewable Fuels Association

Nov 16, 2022

A report released today by the U.S. Energy Information Administration demonstrates clearly that higher blends of ethanol helped moderate fuel prices  in the wake of the Ukraine invasion. The report noted that the U.S. ethanol blend rate hit a record summer average of 10.5% in 2022 and averaged 10.6% in June and August. “Fuel ethanol’s price discount to gasoline was one factor that led to the higher summer blend rate in 2022,” the report stated. “Although ethanol prices have been high in 2022, they have been low relative to gasoline prices, which were at their highest since 2014 this summer because of low domestic inventories and constraints on refining capacity.”

“This new analysis from EIA confirms that American drivers gravitated toward lower-cost E15 and E85 this summer as war in Ukraine drove pump prices to record heights,” said RFA President and CEO Geoff Cooper. “The report also demonstrates that President Biden made the right call by issuing emergency waivers to allow the continued sales of E15 through the summer months. The Biden administration’s emergency waivers helped stave off fuel shortages and ensured consumers had uninterrupted access to E15, which was typically priced 20-40 cents per gallon lower than regular gasoline. EIA’s analysis also shows that consumption of lower-carbon renewable fuels increases, as expected, when the Renewable Fuel Standard and its RIN market mechanism are allowed to work as intended. This report comes at a critical time and underscores the importance of permanently removing the summertime barrier to E15 sales and implementing robust RFS volume requirements for 2023 and beyond.”

The report matches  a recent ananlysis  by RFA Chief Economist Scott Richman, which found that an additional 194 million gallons of E15 were sold during the summer as a result of the Biden administration’s RVP waivers, saving American consumers $57 million. In a column in the August issue  of Ethanol Producer magazine, Cooper reflected that “At gas stations across the country, the cure for high prices isn’t more high prices—it’s ethanol. Refiners and blenders can lower gas prices for consumers simply by adding more ethanol, which has been $1–$1.50 per gallon cheaper than gasoline for much of the summer.”

EIA in its report stated that it raised its forecast for the average 2022 fuel ethanol blend rate to a record 10.4%. “This year’s annual average blend rate has been higher so far than in prior years, averaging 10.3% from March through July, compared with 10.1% for the same months in 2020 and 2019—the most recent year that EPA set RFS targets for ethanol at the current maximum. Following August’s average blend rate of 10.6%, the 2022 annual average blend rate increased to 10.4%. We forecast the annual average fuel ethanol blend rate to remain near current levels and end the year at 10.4%.”

EIA also noted that E85 sales have been on the rise. “From June–August 2022, U.S. production of E85 conventional gasoline was at record levels, averaging 21,000 b/d over those three months. In comparison, conventional E85 production averaged 15,000 b/d from June–August 2021 and was generally lower in all prior months. … In addition, E85 is becoming increasingly available. According to the U.S. Department of Energy’s Alternative Fuels Data Center, the United States had 4,331 E85 fueling stations as of January 2022, a 10% increase (385 stations) from the prior year.”

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Ethanol Producer Magazine

Nov 7, 2022

The U.S. exported 100.4 million gallons of ethanol and 877,745 metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 3. Exports of both products were up from September 2021.

The 100.4 million gallons of ethanol exported in September was up from both the 76.99 million gallons exported the previous month and the 77.58 million gallons exported in September 2021.

The U.S. exported ethanol to approximately three dozen countries in September. Canada was the top destination for U.S. ethanol exports at 42.22 million gallons, followed by the Netherlands at 13.75 million gallons and South Korea at 12.02 million gallons.

The value of U.S. ethanol exports reached $280.59 million in September, up from both $229.43 million in August and $191.7 million in September of last year.

Total ethanol exports for the first nine months of 2022 reached 1.11 billion gallons at a value of $3.07 billion, compared to 872.5 million gallons exported during the same period of last year at a value of $1.79 billion.

The 877,745 metric tons of distillers grains exported in September was down when compared to the 981,020 metric tons exported in August, but up when compared to the 853,707 metric tons exported in September of last year.

The U.S. exported distillers grains to approximately 35 countries in September. Mexico was the top destination for U.S. distillers grains exports, at 187,583 metric tons, followed by Vietnam at 155,945 metric tons and South Korea at 57,554 metric tons.

The value of U.S. distillers grains exports reached $271.9 million in September, down from $317.05 million the previous month, but up from $216.61 million in September 2021.

The U.S. exported a total of 8.59 million metric tons of distillers grains during the first three quarters of 2022 at a value of $2.61 billion, compared to 8.56 million metric tons exported during the same period of 2021 at a value of $2.22 billion.

Additional data is available on the USDA FAS  website

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Ethanol Producer Magazine

Nov 3, 2022

Novozymes released third quarter financial results on Nov. 3, reporting that bioenergy sales were up 32 percent for the three-month period and 26 percent for the first nine months of the year. Overall sales were up 6 percent for the quarter, and 9 percent so far this year.

Novozymes said the strong performance for its bioenergy segment was driven by a broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value capture for producers in a favorable market environment.

The North American market experience strong developments overall, according to Novozymes, supported by increased U.S. ethanol production. Outside of North America, performance was also strong and driven by innovation, capacity expansion of corn-based ethanol production in Latin America and supported by growth in solutions for biodiesel production.

For the third quarter, Novozymes also reported that sales of enzymes used in second-generation biofuels also did well and contributed to growth during the three-month period.

Following strong performance for the first nine months of 2022, Novozymes has raised its guidance for the full year performance of the bioenergy segment. The company now expects growth in the high-teens, up from the mid-teens. That growth is expected to be driven by innovation and supported by increased U.S. ethanol production, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production along with enzyme sales for second-generation ethanol production.

The bioenergy segment accounted for 20 percent of Novozymes sales during the first nine months of 2022. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 29 percent, 24 percent, 15 percent and 12 percent, respectively.

A full copy of Novozymes’ third quarter report is available on the company’s website.

Read the original story here.

Reuters

Nov 3, 2022

The U.S. Environmental Protection Agency plans to seek public comment on whether to allow year-round sales of higher ethanol gasoline blends in Midwest states, based on a request from state governors that they say would ease pump prices and help farmers, according to three sources familiar with the discussions.

The move to expand sales of E15 would be a win for the ethanol industry, which wants to increase sales of the corn-based fuel and which argues the product would reduce gasoline prices by expanding the volume of available supply.

However, critics of the idea - including those in the refining industry - have voiced concerns that a piecemeal approach to growing E15 sales could introduce logistical distribution challenges.

The EPA could start seeking comment as soon as this month, said the sources.

The refining industry has traditionally balked at efforts to expand the ethanol market because it competes for space in the fuel tank and can be costly to blend.

The EPA did not respond to requests for comment.

The EPA enforces a summertime ban on E15 over concerns it contributes to smog in hot weather, though research has since shown the 15% blend may not increase smog relative to the more common E10 sold year-round. E10 contains 10% ethanol.

In April, governors from major corn-producing Midwestern states including Iowa, Nebraska and Illinois requested that the EPA effectively lift the ban in their states. EPA head Michael Regan said in September the agency intends to act on the request  before next summer.

Critics say allowing a different fuel grade in a region that is serviced by a select amount of pipelines can create shipping challenges.

The biofuel industry has faced legal hurdles in expanding U.S. E15 sales in the past.

A federal appeals court last year struck down an effort by former President Donald Trump's administration  to allow year-round E15 sales,  arguing it did not have the authority, a decision that had been sparked by a challenge from the refining industry.

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Whitefox

Nov 8, 2022

Whitefox, the leading bioethanol membrane engineering innovator, is pleased to announce that Western Plains Energy LLC (Western Plains) will be the first US ethanol producer to install Whitefox ICE®-XL system at its 50 million gallons per year ethanol plant in Kansas. 

Derek Peine, CEO at Western Plains Energy said: “Since beginning operations in 2004, Western Plains has always been on the forefront of innovation and an early adaptor of technologies that deliver step-changes in energy efficiency and operational yield. In our discussion with Whitefox we found that its ICE-XL integrated membrane solution would serve as a cornerstone in fully decarbonizing our production process. Our quest to achieve net-zero emissions is something that we are passionate about, and we are excited to partner with Whitefox to help us achieve our goal.” 

Tony Short, Head of Global Sales at Whitefox said: “Whitefox ICE-XL is an evolution of the Whitefox ICE® which we have installations in 9 US ethanol plants. ICE-XL fully replaces existing molecular sieves and delivers exceptional operational benefits such as up to 50% capacity increase across distillation and dehydration and 50% steam reduction when fully integrated. Our team of process engineers worked closely with Derek and his team to design a solution that would bring exceptional energy recovery and carbon reductions to enable carbon neutral fuel production.” 

Gillian Harrison, CEO at Whitefox said "I first met Derek in 2016 and it was inspiring to hear how focussed he was on reducing the carbon footprint of ethanol production. We began discussing how we could expand the Whitefox ICE solution to a full replacement of molecular sieves, given their propensity to crack, so it's exciting to now be working with Western Plains to install our first ICE-XL and support them on their journey to Net Zero ethanol." 

Engineering phase 1 is already in progress and the project has an estimated start-up and commissioning date towards the end of 2023. 

About Western Plains 

Western Plains Energy, LLC. is renewable energy production company in Oakley, Kansas. The company converts regionally grown grain into sustainable, low-carbon products in the form of denatured ethanol and wet distillers grains. Western Plains Energy is committed to meeting the growing demand for domestically produced, sustainable renewable energy. 

About Whitefox Technologies Limited 

Whitefox specializes in technology development and innovation based on its proprietary membrane solutions. Whitefox’s Integrated Cartridge Efficiency (ICE) uses membrane-based cartridge technology which enables clients to produce ethanol and other chemicals to the highest market standards in the most energy and water efficient way. With a small carbon footprint, Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America. 

Read the original press release here

US Grains Council

Oct 12, 20222

More than 1.3 million metric tons (80 million bushels of corn equivalent), equating to about $700 million dollars, were recently transacted and negotiated at the 2022 Southeast Asia U.S. Agricultural Co-operators Conference in Bangkok, Thailand, in late September.

Jointly organized by the U.S. Grains Council (USGC) and U.S. Soybean Export Council (USSEC), the event welcomed its largest turnout since its inception in 2004. Having been limited to virtual events for over two years, industry representatives from across the region were excited to take part in the event, reconnecting and establishing relationships for U.S. agricultural products.

Of the commodities sold, 90,000 metric tons, or 4 million bushels, were U.S. corn and 207,000 metric tons (about 33 million bushels in corn equivalent) were U.S. distiller’s dried grains with solubles (DDGS). The remaining sales consisted of U.S. soybeans, soybean meal and wheat.

“The fact that the whole industry shows up to this event says a lot about the resiliency of our industry. When our growers, traders, and our end-users all come together, there’s not a market headwind that we can’t face and flourish,” said Caleb Wurth, USGC regional director, Southeast Asia and Oceania.

Council programs continue post conference to ensure end users are prepared to maximize the utilization of our products once sold; servicing customers’ commercial and technical needs.

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Ethanol Producer Magazine

Oct 26, 2022

U.S. fuel ethanol production expanded by nearly 2 percent the week ending Oct. 21, according to data released by the U.S. Energy Information Administration on Oct. 26. Weekly ending stocks of fuel ethanol were also up 2 percent.

Fuel ethanol production averaged 1.033 million barrels per day the week ending Oct. 21, up 17,000 barrels per day when compared to the 1.016 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 Oct. 21 was down 73,000 barrels per day.

Weekly ending stocks of fuel ethanol reached 22.291 million barrels the week ending Oct. 21, up 447,000 barrels when compared to the 21.844 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Oct. 21 were up 2.366 million barrels.

Read the original story here