Renewable Fuels Association

January 5, 2018

By Ann Lewis

U.S. ethanol exports totaled 107.2 million gallons (mg) in November, up 14% from October shipments, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). Despite the imposition of a tariff rate quota and 20% tariff in September, Brazil was the leading destination for U.S. ethanol exports for the first time in six months, receiving 28.1 mg. November also saw a small volume of denatured ethanol exported to China, which has not imported any U.S. fuel ethanol in the prior 10 months. Canada scaled back its imports of U.S. product to 24.2 mg, a 29% reduction from October. Exports to India perked up at 15.5 mg, a 17% increase, while shipments to the Philippines more than doubled to 9.9 mg. These four countries accounted for nearly three-fourths of all U.S. ethanol shipments in November. Exports to all destinations for the first eleven months of 2017 stood at 1.19 billion gallons, indicating a record annualized export volume of 1.30 billion gallons.

November exports of undenatured fuel ethanol rebounded by 23% to 52.8 mg, a four-month high. Brazil increased purchases by 117% to 28.1 mg, taking over half of U.S. undenatured shipments, while the Philippines imported 6.5 mg, up 41%. Meanwhile India cut its imports in half with 6.4 mg of undenatured fuel ethanol entering the country. Switzerland (3.2 mg) and Jamaica (2.8 mg) rounded out the top five largest markets for undenatured fuel product.

U.S. exports of denatured fuel ethanol decreased by 10% from October levels to 42.0 mg. Canada again took the lead with 23.3 mg, accounting for 55% of denatured fuel ethanol exports. The remaining denatured shipments were distributed to India (5.0 mg), the Philippines (3.4 mg), Colombia (3.3 mg), South Korea (3.1 mg), China (2.4 mg), and Mexico (1.5 mg).

Overseas sales of undenatured ethanol for non-fuel, non-beverage purposes increased by 41% to 3.2 mg, with Saudi Arabia receiving 2.7 mg, or 86% of the exports. November exports of denatured ethanol for non-fuel, non-beverage purposes jumped a whopping 407% to a 68-month high (running back to March 2012). The U.S. shipped 4.1 mg of denatured non-fuel product to both Nigeria and India, accounting for the bulk of overseas sales.

For the seventh straight month this year, the United States recorded meaningful fuel ethanol import volumes. The 20.7 mg of undenatured ethanol shipped in from Brazil in November is the largest volume to enter the country in 26 months. Monthly imports have only breached 20 mg four times over the past 50 months. Year-to-date fuel ethanol imports totaled 76.5 mg, a 127% increase over the same period last year. Annualized import volumes are estimated at 83.5 mg—roughly the volume imported in 2014.

 Exports of dried distillers grains with solubles (DDGS)—the animal feed co-product generated by dry mill ethanol plants—contracted 15% in November to a six-month low of 875,302 metric tons (mt), shipped to 35 countries. Mexico cut its purchases from October, although it still remained the lead destination with 144,415 mt in DDGS exports (16% of market share). Export expansion in Vietnam showed signs of slowing with a 2% increase at 103,834 mt (12% of the DDGS exports for the month). Other leading destinations included South Korea (86,983 mt, or 10%), Indonesia (76,200 mt, or 9%), and Thailand (73,917 mt, or 8%). Turkey cut its imports by half to 59,397 mt—its lowest purchase of U.S. DDGS in thirteen months. Total year-to-date DDGS exports to all countries stood at 10.1 mmt through November, indicating an annualized total of 11.03 mmt.

Read the original story: U.S. Ethanol Exports Swell in November, as Brazil is Top Destination and China Returns to Market

Iowa Renewable Fuels Association

December 28, 2017

Press Release

JOHNSTON, IA – Iowa’s 43 ethanol plants had another record breaking year, producing 4.2 billion gallons in 2017. The slight uptick in production from 4.1 billion gallons in 2016 is largely due to several plant expansions and increased demand of exports and higher blends like E15.

“Iowa continues to lead the country and the world in ethanol production and efficiency,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “Several plant expansions just finished or will finish during the 1^st quarter of 2018, so production could jump again next year. That makes expanding export markets abroad and breaking down unnecessary barriers to E15 here at home top priorities.”

IRFA’s top state policy priority for 2018 is securing funding for the Iowa Renewable Fuels Infrastructure Program (RFIP) to ensure more retailers have the equipment necessary to offer higher blends of ethanol now and in the future. However, coupled with RFIP funding, action at the federal level would create the best environment for retailers to move forward with E15.

“The EPA needs to provide the same regulatory treatment for E15 as all other ethanol blends,” added Shaw.  “That step alone would draw many more retailers into offering the option of E15 to their customers. Also, as the world’s cheapest source of fuel octane, we’ll be working to continue to build on the record exports of 2017.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing 4 billion gallons annually – including nearly 55 million gallons of annual cellulosic ethanol production capacity – and 12 biodiesel facilities with the capacity to produce over 380 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

Ethanol Producer Magazine

December 14, 2017

By Tim Albrecht

Environment and Climate Change Canada released the preliminary Clean Fuel Standard regulatory framework Dec. 13, according to a press release from non-profit Renewable Industries Canada.

The goal of the proposed framework is to achieve 30 million metric tons (33.1 million tons) in GHG emissions annually by 2030, which contributes to the country’s effort to achieve an overall GHG mitigation target of 30 percent reduction below 2005 levels.

The clean fuel standard will establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels that are used in transportation, industry and buildings. This performance-based approach will incent innovation, development and use of a broad range of low carbon fuels, energy sources and technologies.

“Our association supports the government of Canada’s objectives and is encouraged that, in the short term, the CGS’s intensity based targets will be backstopped by existing biofuel mandates. This combination of policy levers will help ensure that heightened demand for biofuels is met by increased domestic supply,” said RICanada Chairman Jim Grey.

Scott Lewis, vice chair of RICanada, and executive vice president of biofuel producer BIOX Corp., said, “The domestic biofuel industry has grown to the point where it is now generating gross economic benefits in excess of $3.5 billion to the Canadian economy each year. This announcement will also bring to Canada a credit trading market for biofuels that is essential in our ability to continue to bring low carbon fuels to consumers at competitive prices, while allowing for some flexibility in compliance.”

The framework builds on existing policy that mandates the blending of 5 percent ethanol and 2 percent biodiesel into Canada’s transportation fuels. The 2010 mandates have reduced GHG emissions by more than 4 million tons per year, which is the equivalent of removing 1 million cars from Canada’s roads each year.

Greenfield Global, a producer of corn-based bulk industrial alcohol, packaged alcohol and fuel ethanol, President and CEO Howard Field welcomed the next stage of the process, saying, “By harnessing the benefits of biofuels within a clean fuel standard, Canada can make even stronger inroads in tackling climate change. We look forward to continued work with the Government on this ambitious policy.”              

A copy of the Clean Fuel Standard regulatory framework is available here.   

Read the original article: Canada Releases Clean Fuel Standard Framework

Renewable Fuels Association

December 19, 2017

By Emily Druckman

WASHINGTON – Ten years ago today, Dec. 19, President George W. Bush signed into law the Energy Independence and Security Act, greatly expanding the scope and impact of the Renewable Fuel Standard (RFS). In the decade since passage, significant progress has been made towards greater energy security, cleaner air and boosting local economies, according to a new analysis by the Renewable Fuels Association, “The RFS2: Then and Now.”

The RFS requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel, culminating with 36 billion gallons in 2022.

“A decade after the RFS2 was adopted, tremendous progress has been made toward achieving the objectives of this landmark policy,” according to the analysis, which compares key data points from 2007 to 2017.

Among the highlights:

-The number of operational U.S. ethanol plants has nearly doubled from 110 in 2007 to 211 in 2017, a 92% increase, while U.S. ethanol production has grown 143% from 6.5 billion gallons in 2007 to 15.8 billion gallons in 2017;

-U.S. ethanol industry jobs grew 42% from 238,541 in 2007 to 339,176, with the value of industry output increasing 74% from $17.8 billion in 2007 to $31 billion in 2017;

-The production of advanced and cellulosic biofuel increased 469% from 490 million gallons in 2007 to 2.79 billion gallons in 2017;

-U.S. corn production grew 12% from 13 billion bushels in 2007 to 14.6 billion bushels in 2017, while corn acres planted fell 3% from 93.5 million acres in 2007 to 90.4 million acres in 2007 and average corn yields increased 16% from 150 bushels per acre in 2007 to 175.4 bushels per acre in 2017;

-The number of retail stations offering flex fuels like E85 increased 238% from 1,208 in 2007 to 4,077 in 2017, while the number of flex fuel vehicles on the road grew from 6.7 million in 2007 to 24.5 million in 2017, a 266% increase; and

-The greenhouse gas emissions avoided from using ethanol has increased 291% from 12.7 million tons CO2e in 2007 to 49.6 million tons CO2e in 2017.

Meanwhile, the doomsday outcomes threatened by RFS opponents have simply not materialized.

-U.S. cropland area fell 6% from 402 million acres in 2007 to 376 million acres in 2017, while U.S. grassland area has increased 5% from 1,296 thousand square miles to 1,359 thousand square miles.

-The deforestation rate in the Amazon fell 43% from 4,498 square miles in 2007 to 2,558 square miles in 2017;

-The greenhouse gas emissions from agricultural soil management, urea fertilization, and liming fell 7% from 278.7 million metric tons CO2e in 2007 to 260.1 million metric tons CO2e in 2017;

-Overall food inflation was 4% in 2007, but 1% in 2017;

-Prices for red meat, poultry, fish, cereals and bakery items, and dairy were unchanged in 2017 from the previous year, as compared to a 3.8% increase in 2007; and

-World grain supply for coarse grains, wheat, and rice increased 31% to 3.23 billion metric tons in 2017, as compared to 2.46 billion metric tons in 2007.

“By any measure, RFS2 has been a huge success, bringing about greater consumer choice while helping to make the air cleaner, stimulate economic activity and enhance energy security,” said Renewable Fuels Association President and CEO Bob Dinneen. “As this analysis shows, consumers have greatly benefitted from this vital program. These benefits have rippled throughout our economy and we look forward to even greater success of the RFS for years to come.”

The full analysis is available here.

Read the original press release: RFA Analysis Finds ‘Tremendous Progress’ Made Toward Meeting Energy, Environmental, Economic Goals of RFS2