In the News
Feb 15, 2024
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN), John Thune (R-SD), and Tammy Duckworth (D-IL), and a group of 40 bipartisan members of Congress, including Senators Baldwin (D-WI), Brown (D-OH), Durbin (D-IL), Ernst (R-IA), Fischer (R-NE), Grassley (R-IA), Marshall (R-KS), Moran (R-KS), Peters (D-MI), Ricketts (R-NE), Rounds (R-SD), Smith (D-MN), and Stabenow (D-MI), as well as Representatives Craig (D-MN), Johnson (R-SD), Pocan (D-WI), Smith (R-NE), Alford (R-MO), Bacon (R-NE), Bost (R-IL), Budzinski (D-IL), Crockett (D-TX), Davids (D-KS), Estes (R-KS), Feenstra (R-IA), Finstad (R-MN), Flood (R-NE), Hinson (R-IA), Kaptur (D-OH), Kelly (D-IL), LaHood (R-IL), LaTurner (R-KS), Miller (R-OH), Miller-Meeks (R-IA), Nunn (R-IA), Panetta (D-CA), Slotkin (D-MI), Sorensen (D-IL), and Van Orden (R-WI) sent a letter urging the Biden Administration to act quickly to ensure that the model used to determine eligibility for Sustainable Aviation Fuel (SAF) tax credits unlocks the potential held by farmers, ethanol producers, and airlines to reduce carbon emissions from aviation.
Specifically, the letter urged the Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG) at the Department of Energy to update the current Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for the SAF tax credit program by the March 1 deadline.
“Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America,” wrote the lawmakers. “As you continue to develop a model to determine eligibility for tax credits under 40B GREET, we ask that you consider the following information to allow every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.
“We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible,” continued the lawmakers. “This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage.”
Klobuchar has long supported legislation to bolster sustainable aviation fuel.
In January 2024, Klobuchar, along with Senators Jerry Moran (R-Kan.), Joni Ernst (R-Iowa), Tammy Duckworth (D-IL.) and Chuck Grassley (R-IA) introduced the Farm to Fly Act. This legislation would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs and allow further growth for alternative fuels to be used in the aviation sector, creating new markets for American farmers.
In June 2023, Klobuchar joined Senators Tammy Duckworth (D-IL), Deb Fischer (R-NE), Joni Ernst (R-IA), and Chuck Grassley (R-IA) in introducing the Sustainable Aviation Fuels Accuracy Act, comprehensive bipartisan legislation to identify the standards required to meet the definition of SAF at the Federal Aviation Administration (FAA).
In June 2021, Klobuchar announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.
In 2021, Klobuchar and Senator Joni Ernst (R-IA) reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.
Full text of the letter is available HERE and below:
Dear Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG):
We write regarding the implementation of the Department of Energy’s (DOE) updated Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for sustainable aviation fuel (SAF).
As you know, homegrown SAF has the potential to drive economic growth and create jobs across America. We recognize your recent decision to allow the GREET model to serve as a secondary model for sustainable aviation fuel as a step in the right direction. This announcement has the potential to bring us closer to scaling up domestic production of SAF as America looks to fortify its domestic energy supply and decarbonize the aviation fuels sector. Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America. As you continue to develop a model to determine eligibility, we ask that you take measures to permit every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.
We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible. We also ask that, in the process of doing so, you adhere to the rigorous science on which the model is based. This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage.
Specifically, we ask that you make the following commitments:
- The updated GREET model must be completed and implemented by the IWG’s stated deadline of March 1, 2024. Biofuel producers are eager to begin making investments in production capacity. If the modeling update misses this deadline, these investments will remain on hold.
- Any proposed modifications to GREET should be subject to the normal scientific, agency, and public processes. Any modifications to the model must be governed by the latest science at the DOE’s Argonne National Lab, who have been recognized as the leaders in developing models to calculate carbon life-cycle analyses.
- Any modifications must ensure that the model will continue to accurately credit conservation practices and emissions reductions from regenerative farming as well as carbon capture and storage. Exclusion of these factors would omit critical efforts by American farmers to reduce emissions and would represent a missed opportunity to include rural America in the diversification of the aviation fuel sector.
- Ensure that valuations of indirect land-use changes recognize the contributions of American agriculture and reward modern practices like precision agriculture that lead to higher per-acre yields.
While we recognize your ongoing work to support the production of SAF, the actions above are crucial for ensuring the long-term stability and growth of this field. We stand ready to work with you to implement the updated GREET model as soon as possible, which will unleash the full potential of domestic SAF production and ensure American farmers can fuel the future.
Thank you for your attention to this important issue.
Read the original press release here.
By National Corn Growers Association
Feb 9, 2024
A letter signed by 3,466 farmers from across the country was sent to President Biden on Feb. 7 expressing concern that his administration is taking a short-sighted approach to addressing climate change by prioritizing the use of electric vehicles over biofuels, such as corn ethanol, as it works to drastically lower the nation’s greenhouse gas emissions.
“If we are going to address climate change and meet our sustainability goals, we are going to have to take a multi-pronged approach, that includes tapping into higher levels of biofuels, such as corn ethanol, which offers an immediate climate solution,” the letter said.
The letter, which drew thousands of signatures in less than a week, comes as the U.S. Environmental Protection Agency prepares to release its light- and medium-duty vehicle tailpipe emissions standards for 2027-2032. To help meet the standards, the president has set a goal that 50% of all vehicle sales will be electric by 2030. A similar rulemaking is also being considered through the National Highway Traffic Safety Administration.
A recent survey, sponsored by the National Corn Growers Association and conducted by Morning Consult, showed that Americans have concerns on a range of issues involving electric vehicles, including the accessibility of charging stations, and an overwhelming majority say vehicles that are compatible with biofuels should remain available to consumers.
In January, thousands of auto dealers from across the country signed on to a similar letter to the president noting that electric vehicles were not selling quickly and were piling up on dealer lots.In the most recent letter, the farmers said it could take years before EVs become popular with consumers, which means the administration must expand its focus and efforts to address GHGs with solutions that are available now.
“As a low-carbon, clean energy source and an affordable, homegrown fuel, ethanol serves as a critical pathway for agriculture and rural America to contribute to a sustainable future,” the letter noted. “We hope you will join us in fully embracing this technology as we all do our best to fight the causes and effects of climate change.
”The letter noted that California, one of the most prominent states in the push for electrification has spent years at the forefront of the transition to EVs, spending enormous political capital and billions of dollars to encourage its citizens to embrace these vehicles. Yet, by the end of 2022, only 2.6% of the state’s light-duty vehicles were electrified.
Gas stations nationwide currently carry fuel with at least 10% ethanol blends, though selling higher blends of ethanol through the summer months currently requires a waiver by EPA.
Corn growers have urged Congress to pass legislation that would allow for higher levels of ethanol blends year-round. NCGA is also pushing to advance the Next Generation Fuels Act, which would lower fuel prices, reduce carbon emissions and help shore-up America’s energy security.
Read the original story here.
Feb 7, 2024
U.S. fuel ethanol production was up more than 4% the week ending Feb. 2, according to data released by the U.S. Energy Information Administration on Feb. 7. Stocks of fuel ethanol were up 2% and exports fell by 43%
Fuel ethanol production averaged 1.033 million barrels per day the week ending Feb. 2, up 42,000 barrels per day when compared to the 991,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Feb. 2 was up 33,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 24.779 million barrels the week ending Feb. 2, up 509,000 barrels when compared to the 24.27 million barrels reported for the previous week. When compared to the same week of last year, stocks for the week ending Feb. 2 were up 362,000 barrels.
Exports of fuel ethanol averaged 78,000 barrels per day the week ending Feb. 2, down 59,000 barrels per day when compared to the 137,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2023 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Feb. 2.
Read the original story here.
Feb 8, 2024
According to new statistical reports released today by the Renewable Fuels Association, the value of the U.S. ethanol industry’s exports soared to a record level of just over $7.1 billion in 2023. Ethanol export volumes strengthened to 1.43 billion gallons in 2023, the third-highest level on record. Meanwhile, distillers grains shipments registered at 10.8 million metric tons, slightly down from 2022.
For more than a decade, RFA’s annual trade summaries have provided industry advocates, policymakers, news media, and the public with the latest data and analysis, demonstrating the importance of U.S. ethanol and distillers grains to the world market.
“Exports represent a crucially important value-added market opportunity for U.S. ethanol producers and the farmers who supply feedstock to our industry,” said RFA President and CEO Geoff Cooper. “We exported one out of every 10 gallons of ethanol produced in the United States last year, along with one out of every three tons of distillers grains. The industry’s export sales made a remarkably positive contribution to the U.S. trade balance, while boosting farm incomes across rural America. As countries around the globe embrace ethanol as a low-cost solution for improving air quality and reducing carbon emissions, RFA will continue to pursue and protect free and fair trade opportunities.”
As detailed in the ethanol trade summary report, the 1.43 billion gallons exported in 2023 represented an increase of 9 percent over 2022 and the highest volume since 2019. The value of U.S. ethanol exports surged to $3.82 billion, a record high. Shipments to Canada set an annual record for a single destination, tallying almost 640 million gallons. The United Kingdom, European Union, South Korea, India and Colombia also were sizable markets.
U.S. imports of fuel ethanol plunged to 21 million gallons in 2023, the lowest level in more than a decade. The U.S. remained a net exporter for the 14th consecutive year, as imports accounted for only 0.1 percent of domestic consumption. Net exports of 1.41 billion gallons were the second-highest ever, trailing 1.60 billion gallons in 2018.
The second trade summary report released today covers co-product exports, including distillers grains, a high-protein feed ingredient for livestock and poultry. Distillers grains exports totaled 10.81 million metric tons in 2023, representing 30 percent of domestic production. Export volumes were slightly lower than 2022, as was their value, at $3.3 billion.
The U.S. supplied distillers grains to more than 50 countries via 26 domestic ports and exit points. Mexico remained the top export market with a 20 percent share, followed by South Korea and Vietnam and Indonesia. Turkey and Morocco were the largest growth markets in 2023, with increases of 48 percent and 39 percent, respectively, compared to 2022.
Printed copies of these analyses will be available to attendees at RFA’s upcoming National Ethanol Conference in San Diego, Calif.
Read the original story here.
Feb 1, 2024
Novozymes on Feb. 1 released unaudited results for 2023, reporting that bioenergy sales were up approximately 23% last year. The company, which on Jan. 29 merged with Chr. Hansen to form Novonesis, is expected to release full audited results on Feb. 8
According to the company, bioenergy sales were up 20% in the fourth quarter when compared to the same three-month period of 2022. Bioenergy sales for the full year 2023 were up 23% when compared to 2022.
Novozymes attributed the strong performance in bioenergy sales to continued penetration in the broad and innovative solutions toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a favorable market environment. In particular, the company said the North American market experienced strong developments supported by a favorable market environment and roughly a 2 percent increase in U.S. ethanol production.
Performance was also strong outside of North America, driven by innovation as well as capacity expansion of corn-based ethanol production in Latin America. Growth was also supported by solutions for biodiesel production and sales of enzymes used in second-generation biofuel production. In addition, pricing had a positive impact on growth, Novozymes said.
Bioenergy sales accounted for 25% of total sales last year, according to Novozymes. The company’s household care; food, beverage and human health; grain and tech processing; and agriculture, animal health and nutrition segments accounted for 28%, 22%, 13% and 12% of 2023 sales.
Overall, Novozymes reported a 6% percent increase in sales for the fourth quarter, and 5% growth for the full year. A full copy of the company’s announcement is available on its website.
Read the original story here.
Jan 31, 2024
U.S. fuel ethanol production was up more than 21% the week ending Jan. 26 after falling to nearly a three-year low the previous week, according to data released by the U.S. Energy Information Administration on Jan. 31. Stocks of fuel ethanol were down 6% and exports were up 13%.
Fuel ethanol production averaged 991,000 barrels per day the week ending Jan. 26, up 173,000 barrels per day when compared to the 818,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Jan. 26 was down 37,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 24.27 million barrels the week ending Jan. 26, down 1.545 million barrels when compared to the 25.815 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Jan. 26 were down 172,000 barrels.
Exports of fuel ethanol averaged 137,000 barrels per day the week ending Jan. 26, up 16,000 barrels per day when compared to the 121,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2023 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Jan. 26.
Read the original story here.
Jan 29, 2024
Growth Energy, the nation’s largest biofuel trade association, released updated data today showing that American drivers recently surpassed a massive milestone: 100 billion miles driven on affordable, homegrown E15 fuel.
The 15-percent biofuel blend is saving motorists nationwide an average of up to 15 cents per gallon at the pump. In some states, amid heightened fuel costs this past summer, drivers saw E15 savings climb as high as 60 cents per gallon.
“At Growth Energy, we are proud to lead the charge on American-made, plant-based fuels,” said CEO Emily Skor. “Homegrown biofuels deliver value for consumers at the pump, value for American agriculture and rural communities, and value for our nation’s climate goals. We’re proud of the 100 billion miles driven on E15 and excited that consumers have access to an affordable, earth-friendly option to fuel their travels.”
Despite the widespread use of E15 to power light-duty vehicles, this fuel blend is only available for sale nine months of the year. Outdated regulations prevent it from being sold during the summer without the issuance of an emergency waiver each year from the U.S. Environmental Protection Agency (EPA). Skor used today’s news about 100 billion miles driven on this fuel to urge lawmakers to find a federal legislative solution that provides for the unrestricted sale of E15 in every state, all year long.
“There aren’t very many products on the market today that allow consumers to both save money and lower their carbon emissions at the same time. E15 is one of them,” she added. “We need a permanent fix to ensure retailers can continue to offer this fuel option and consumers can continue to rely on it to quickly and easily lower their fuel costs and shrink their carbon footprint.”
About E15
E15 is a fuel blend made of gasoline and 15% bioethanol. The U.S. Environmental Protection Agency (EPA) has approved its use in all cars, trucks, and sport utility vehicles (SUVs) made in model year 2001 and newer—representing more than 96% of all vehicles on the road today. E15 can be found at over 3,400 gas stations in 31 states and is legal for sale in every state except California. Last summer drivers saved an average of 15 cents per gallon by filling up with E15 compared to regular, or E10. In some areas, E15 saved drivers as much as $.60 per gallon at the pump.
Learn more about E15 here.
Read the original story here.
Jan 22, 2024
WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), Amy Klobuchar (D-Minn.) and Joni Ernst (R-Iowa) today introduced legislation that would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs to allow further growth for alternative fuels to be used in the aviation sector and create new markets for American farmers.
The Farm to Fly Act would utilize current USDA programs to support the development of SAF, clarify federal definitions for SAF and enable greater collaboration between USDA and the private sector.
“Sustainable aviation fuel is a promising alternative fuel source that can provide new markets for farmers while increasing our domestic energy production and security,” said Sen. Moran. “This legislation would increase the accessibility of biofuel for commercial use and directly support rural America and its farmers, the agriculture industry and the aviation sector.”
“Alternative energies like sustainable aviation fuel create jobs in rural areas, bolster our national security, and reduce carbon emissions from air travel,” said Sen. Klobuchar. “This bipartisan bill with Senators Moran and Ernst will be another step forward in securing new markets for domestically produced biofuel.”
“As we work toward energy independence, the U.S. Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model will play a key role in allowing homegrown, Iowa biofuel to meet the needs of the U.S. aviation industry while also creating new markets for biofuel producers,” said Sen. Ernst. “An investment in the development of sustainable aviation fuel is an investment in our national security, our environment, and our farmers.”
Companion legislation was introduced in the House of Representatives by Reps. Max Miller (R-Ohio), Nikki Budzinski (D-Ill), Angie Craig (D-Minn), Jasmine Crockett (D-Texas), Randy Feenstra (R-Iowa), Brad Finstad (R-Minn), Mike Flood (R-Neb) and Ashley Hinson (R-Iowa).
This legislation is also supported by a number of aviation, agriculture and energy leaders.
“The Kansas Corn Growers Association supports Senator Moran’s continued leadership in Sustainable Aviation Fuel with the Farm to Fly Act,” said Brent Rogers, President of the Kansas Corn Growers Association. “Corn-based ethanol can play a key role in Sustainable Aviation Fuel, and this legislation solidifies and strengthens our ongoing efforts with airline companies. Ethanol-based SAF would be a game-changer for corn and ethanol producers and the farm economy.”
"The National Sorghum Producers thank Senator Moran for the effort behind this legislation and the recognition that changes need to be within current law to allow flexibility for commodities to participate in the renewable fuels sector,” said Craig Meeker, Chairman of the National Sorghum Producers. “We look forward to working with Senator Moran and the Senate Agriculture leadership on a final product in the Farm Bill."
“America’s farmers are well-positioned to supply sustainable agriculture feedstocks that will help scale production of the sustainable aviation fuel in demand by airlines today,” said Lindsay Fitzgerald, Vice President of Government Relations at Gevo. “The Farm to Fly Act recognizes agriculture is key to enabling cleaner flight, including using a data-driven tool to account for the benefits of farmers’ production practices with the Argonne GREET model. Gevo thanks Senators Jerry Moran, Amy Klobuchar and Joni Ernst for their leadership and supports this legislation that affirms the role of farmers in growing these new fuels.”
“The path to decarbonizing the skies runs right through America’s heartland,” said Emily Skor, Growth Energy CEO. “The Farm to Fly Act would allow our farmers to drive a wave of new investment in sustainable aviation fuel (SAF). We thank Senators Moran, Klobuchar and Ernst for introducing this important legislation in the Senate and urge all lawmakers to get behind a bill that would position America as a leader in SAF and create new jobs in America’s rural communities.”
“RFA strongly supports the Farm to Fly Act, and we truly appreciate Sen. Moran—along with cosponsors Sens. Klobuchar and Ernst—and their effort to move forward this important legislation that creates more clarity and stability around the development of sustainable aviation fuels (SAF) made from U.S. crops,” said Geoff Cooper, President & CEO, Renewable Fuels Association. “This bill helps position SAF for takeoff by ensuring the best available science and modeling tools are used to calculate the carbon benefits of homegrown renewable fuels.”
“Increased partnership with the agriculture sector is imperative as the aviation industry works to increase production of cost-competitive sustainable aviation fuels. Airlines for America greatly appreciates Senators Moran, Klobuchar and Ernst’s leadership on this issue. This bill has a companion in the House, signaling the strong bipartisan, bicameral support for SAF development and expansion.” – Airlines for America
The Farm to Fly Act would:
- Clarify eligibility for SAF within current USDA Bio-Energy Programs, expanding markets for American agricultural crops through aviation bioenergy;
- Provide for greater collaboration for aviation biofuels throughout USDA agency mission areas, increasing private sector partnerships; and
- Affirm a common definition of SAF for USDA purposes, as widely supported by industry to enable U.S. crops to most effectively contribute to aviation renewable fuels.
Read the original press release here.
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Jan 15, 2024
The International Energy Agency released a new report on Jan. 11, Renewables 2023, predicting that global biofuel demand will expand by 38 billion liters (10.4 billion gallons) between 2023 and 2028.
In the report, the IEA predicts that total biofuel demand will increase 23 percent to 200 billion liters by 2028. Renewable diesel and ethanol are expected to account for two-thirds of that growth, with biodiesel and biobased sustainable aviation fuel (SAF) accounting for the remainder.
Most of the new biofuel demand over the next five years is expected to come from emerging economies, particularly Brazil, Indonesia and India. Ethanol and biodiesel use is expected to expand the most in these regions. Renewable diesel and biobased SAF are expected to be the primary growth segments in advanced economies, including the U.S., European Union, Canada and Japan.
According to the IEA, renewable diesel and biobased SAF consumption are expected to expand by 18 billion liters through 2028. The U.S. and Europe are expected to account for 80 percent of that increase.
Ethanol and biodiesel are expected to expand by 13 percent over the next five years, with growth in emerging economies offsetting declines in advanced ones. The report predicts that European ethanol demand is expected to rise slightly through 2028, but that that increase will be offset by declines in the U.S. where gasoline use is expected to shrink. Biodiesel consumption is expected to expand in Brazil and Indonesia. The U.S. and Europe are expected to remain major biodiesel markets during the next five years, accounting for more than one-third of global biodiesel demand in 2028. Renewable diesel, however, is expected to capture new growth in demand due to its superior blending properties.
The IEA predicts that more than 60 percent of global biofuel demand and production growth over the next five years will take place in Brazil, Indonesia, India and Malaysia. Across these countries, ethanol use is expected to increase by 13 billion liters through 2028, with biodiesel consumption increasing by 8 billion liters. That projected growth accounts for nearly all expected expansion in emerging economies over the next five years.
Globally, biobased SAF use is expected to expand by nearly 5 billion liters through 2028, making up nearly 1 percent of global jet fuel supplies. The U.S., Europe and Japan are at the forefront of that expected growth.
In addition to these baseline predictions, the IEA’s report also outlines forecasts associated with the agency’s “accelerated case” in which stronger policy drivers and other factors could lead to significantly higher biofuel consumption.
Read the original story here.
United States Department of Agriculture
Jan 11, 2024
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that USDA is awarding $19 million in grants to U.S. business owners to increase the availability of domestic biofuels in 22 states and give Americans cleaner, more affordable fuel options at gas station pumps as part of President Biden’s Bidenomics agenda to lower costs and invest in America.
Blending ethanol into gasoline has helped reduce fuel costs by approximately 25 percent, contributing to falling gas prices across the country. Gas prices are now under $2.99 in more than half of U.S. states and saving the average driver more than $100 per month relative to peak prices. HBIIP increases the number of Americans that benefit from falling prices by expanding the use of ethanol-based fuels at gas stations around the nation.
The Department is making the awards through the Higher Blends Infrastructure Incentive Program (HBIIP), made possible with funding from President Biden’s Inflation Reduction Act.
“President Biden’s Inflation Reduction Act is giving people in rural areas the historic opportunity to expand clean energy and build an economy that benefits working families,” Vilsack said. “By increasing the supply of biofuels made here in the U.S., we are strengthening our energy independence, lowering costs for American families, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities.”
Secretary Vilsack made today’s announcement during his visit to the Iowa Renewable Fuels Summit in Altoona. Secretary Vilsack was awarded the Lifetime Champion of Renewable Fuels Award by the Iowa Renewable Fuels Association during the Summit.
Through this most recent tranche of awards, business owners are receiving $19 million to expand access to domestic biofuels in 22 states and strengthen America’s energy independence. For example:
- Casey’s will use a $5 million grant to install ethanol blend fuel dispensers at 111 fueling stations in Iowa, Illinois, Minnesota, Nebraska and South Dakota. Using these investments, the company aims to increase the amount of biofuels it supplies by 50 million gallons a year.
- Piasa Enterprises Inc. in Illinois will use a $200,000 grant to install two 30,000-gallon biodiesel storage tanks and associated piping at their Hartford fuel distribution center. The company projects an increase in the amount of biodiesel sold by 2 million gallons per year.
- In Maryland, AC&T Inc. will install two ethanol fuel dispensers and one ethanol storage tank. Through this project, AC&T owners aim to expand the amount of ethanol they supply by over 106,000 gallons a year.
The full list of states to receive funding is: Arizona, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, South Dakota, Texas and Wisconsin.
Since the start of the Biden-Harris Administration, USDA has invested more than $96 million nationwide to increase access to biofuels at fueling stations. $11.6 million of this has been invested in Iowa.
Background: Higher Blends Infrastructure Incentive Program
The Higher Blends Infrastructure Incentive Program (HBIIP) provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. Expanding the availability of homegrown biofuels strengthens energy independence, creates new revenue for American businesses and brings good-paying jobs to rural communities.
In June 2023, USDA made $450 million available in Inflation Reduction Act funding through the HBIIP to expand the use and availability of higher-blend biofuels. That same month, USDA also announced the first round of Inflation Reduction Act-funded HBIIP awardees.
USDA continues to accept applications for funding to expand access to domestic biofuels. These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. There are three quarterly application windows left, and the program ends Sept. 30, 2024. The next application deadline is March 31, 2024.
For more information, go to the HBIIP webpage.
Background: Inflation Reduction Act
This announcement is part of President Biden’s Investing in America agenda to grow the American economy from the middle out and bottom up by rebuilding our nation’s infrastructure, driving over $640 billion in private-sector manufacturing investments, creating good-paying jobs and building a clean-energy economy to tackle the climate crisis and make our communities more resilient.
The Biden-Harris Administration championed the Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis, a key pillar of Bidenomics and part of the Investing in America agenda. Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America. The Act provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions.
For more information on the Inflation Reduction Act, visit: www.rd.usda.gov/inflation-reduction-act.
Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
Read the original press release here.
Jan 10, 2024
The U.S. Energy Information Administration increased both its estimate of 2023 fuel ethanol production and forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released Jan. 9.
The EIA currently estimates that U.S. ethanol production averaged 1.02 million barrels per day in 2023, up from last month’s forecast of 1.01 million barrels per day. The agency also increased its forecast for 2024 fuel ethanol production to 1.02 million barrels per day, up from the forecast of 1 million barrels per day included in its December STEO. In addition, the January STEO includes the EIA’s first short-term forecast for 2025, with the agency predicting fuel ethanol production will continue to average 1.02 million barrels per day next year.
On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first quarter of this year, falling to 1.01 million barrels per day in the second and third quarters, and expanding to 1.03 million barrels per day in the fourth quarter. Moving into 2025, fuel ethanol production is currently expected to average 1.02 million barrels per day in the first and second quarters, 1.01 million barrels per day in the third quarter, and 1.04 million barrels per day in the fourth quarter. Fuel ethanol production averaged 1.05 million barrels per day in the final quarter of 2023.
The EIA maintained both its estimate that fuel ethanol blending averaged 930,000 barrels per day in 2023 and that fuel ethanol blending will continue to average 390,000 barrels per day in 2024. The agency currently predicts fuel ethanol blending will expand to 940,000 barrels per day in 2025.
Read the original story here.
Jan 9, 2024
U.S. ethanol exports dipped 1% to a robust 115.9 million gallons (mg). Canada was our largest destination for the 32nd consecutive month despite a 23% drop in volume. Shipments totaled 50.0 mg (of which 91% was denatured), accounting for 43% of global sales. The U.S. exported 22.6 mg to Colombia (up from essentially zero), which is a record high for that market. India imported 13.5 mg (a -1% decline) while the European Union (down 54%) and United Kingdom (down 39%) each imported 7.7 mg. Virtually all remaining ethanol exports landed in South Korea (3.8 mg, -37%), Mexico (3.4 mg, -33%), Jamaica (3.3 mg, a 6-fold increase), Peru (2.9 mg, -50%), and Singapore (0.8 mg, +47%). Brazil again was notably absent from the market. Ethanol exports through November 2023 totaled 1.27 billion gallons, 3% ahead of the same period in 2022.
The U.S. imported 3.3 mg of undenatured ethanol from Brazil and minimal volumes of denatured ethanol from South Africa. Total ethanol imports through November 2023 totaled 20.6 mg, 73% less than the same period in 2022.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slowed 7% to 829,911 metric tons (mt)—the lowest volume since April. Shipments landing in our top ten largest customers were mixed but up 3% overall, while a cumulative decline across our smaller markets (-44%) pulled down the November total. Mexico was our largest destination for the 17th consecutive month with exports of 177,724 mt. Still, this was an 8% decrease from October and a 6-month low. Other larger importers included South Korea (108,922 mt, +42%), Vietnam (101,389 mt, -16%), Indonesia (83,558 mt, +26%), Canada (78,341 mt, - 16% decline), Colombia (52,365 mt, quadrupled to an 11-month high) and China (33,189 mt, +9% to a 22-month high). DDGS exports through November 2023 totaled 9.82 million mt, lagging 3% behind the same period in 2022.
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Dec 28, 2023
U.S. fuel ethanol production was up 3 percent the week ending Dec. 22, according to data released by the U.S. Energy Information Administration on Dec. 28. Stocks of fuel ethanol were also up 3 percent, while exports were down 33 percent.
Fuel ethanol production averaged 1.107 million barrels per day the week ending Dec. 22, up 36,000 barrels per day when compared to the 1.071 million barrels per day of production reported for the previous week, and the highest level of production reported since October 2021. When compared to the same week of last year, production for the week ending Dec. 22 was up 144,000 barrels per day.
Weekly ending stocks of fuel ethanol for the reached 23.517 million barrels the week ending Dec. 22, up 611,000 barrels when compared to the 22.906 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 22 were up 1.119 million barrels.
Fuel ethanol exports averaged 132,000 barrels per day the week ending Dec. 22, down 64,000 barrels per day when compared to the 196,000 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. No fuel ethanol imports were reported for the week ending Dec. 22.
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Dec 21, 2023
CoBank’s Knowledge Exchange on Dec. 14 released a report focused on forces that will shape the U.S. rural economy next year. The report predicts that both ethanol producers and soybean crushers will benefit from rising demand for biofuels in 2024.
“The biofuel sector at large carries the momentum of historically large profit margins into the new year,” CoBank wrote in the report. With renewable identification number (RIN) prices declining, selling renewable diesel outside of the California market is expected to be less profitable. Ethanol margins are expected to remain comparatively healthy in 2024 due to a combination of affordable natural gas prices and corn prices that are under pressure from a record harvest and weak export demand.
A slowing global economy and surplus of energy on the work market is currently depressing fuel and ethanol prices. The risk of conflict spreading in the Middle East and disrupting supply lines among oil-exporting countries could result in a global energy shock and surge in fuel and ethanol prices, according to the report.
The report also notes that the booming renewable diesel industry combined with the shorter U.S. soybean crop harvest of 2023 will drive an expansion of soybean acreage in the U.S. next year, reducing available acreage for other crops. Soybean planted acreage is currently expected to be up 4 percent when compared to 2023, at 87 million acres. Corn acreage is expected to fall 4 percent to 91 million acres.
A full copy of the report is available on the CoBank website.
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Dec 19, 2023
The U.S. EPA on Dec. 18 delivered its final rule to allow year-round E15 sales in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin to the White House Office of Management and Budget. OMB reviews marks a final step before a rulemaking is promulgated.
Several Midwestern governors in April 2022 filed petitions with the EPA requesting that the agency remove the 1-psi Reid vapor pressure (RVP) waiver for summer gasoline-ethanol blended fuels, which would effectively allow E15 to be sold year-round within their states.
The EPA is required by statute to respond to such petitions within 90 days but, to date, has failed to take final action. The agency released a proposed rule to implement the requested change in February 2023. A comment period on the proposed rule was open through April 20. The agency has now submitted the final rule for OMB review. Information released by OMB indicates the target issue date for the final rule is “to be determined,” but the agency has stated as part of an ongoing lawsuit that it currently plans to promulgate the final rule next spring.
That ongoing lawsuit was filed by the attorneys general of Iowa and Nebraska on Aug. 7 over the agency’s failure to respond to the Midwest E15 petitions. Documents filed as part of that ongoing lawsuit indicate that the EPA currently plans to issue a final rule by March 28, 2024.
The Renewable Fuels Association is urging the OMB to quickly finalize the rulemaking. “We are relieved to see that this rule has finally moved forward to the White House for review,” said Geoff Cooper, president and CEO of the RFA. “OMB review marks the final step in this long and arduous regulatory process. We are urging OMB to move quickly to finalize the Governors’ request so that the marketplace will have adequate lead time to continue preparing for implementation in 2024. Swift completion of this rule will ensure drivers in these eight Midwest states enjoy cleaner air and have uninterrupted, year-round access to lower-cost, lower-carbon E15 in 2024 and every year after that.
“While we strongly support the action being taken by these eight Midwestern states, the optimal solution for the marketplace is a permanent legislative fix that applies nationwide,” Cooper continued. “As a first order of business in the new year, we urge Congress to expeditiously adopt the Nationwide Consumer and Fuel Retailer Choice Act to provide the market certainty and stability that the entire nation is looking for.”
The American Coalition for Ethanol is also calling on OMB to move quickly with its review of the rule. "We are gratified EPA has at long last sent the final rule to allow Midwest states to offer E15 on a year-round basis,” said Brian Jennings, CEO of ACE. “Despite the upcoming Christmas holiday, we urge OMB to quickly perform its closing review so the final rule can be issued early in 2024. All market participants, including but not limited to retailers, wholesalers, terminal operators and refineries, should expect and plan for this rule to take effect in the eight states for the 2024 summer driving season and plan accordingly."
Growth Energy expressed gratitude that the rulemaking is moving forward. “This is a welcome step forward for farmers and drivers across the Midwest,” said Emily Skor, CEO of Growth Energy. “We’re grateful to the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin for pressing for uninterrupted access to low-cost, low-carbon E15, and we’ll continue to call on EPA and the White House to grant year-round E15 nationwide. Biofuels like E15 are a critical part of reaching our climate goals, and we urge President Biden to swiftly approve the expanded sale of E15.”
Additional information is available on the OMB website.
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Dec 6, 2023
U.S. ethanol exports decreased 3% to a still-healthy 117.1 million gallons (mg). Canada was our largest destination for the 31st consecutive month with exports of 64.6 mg (94% denatured) accounting for 55% of total sales on a 7% increase from September. This is the largest single-country purchase since Brazil’s offtake in March 2019. The U.S. exported 13.7 mg to India (following four months of near-zero volumes) and 12.6 mg to the United Kingdom (down 8% from September). Virtually all remaining ethanol exports were distributed among seven markets, with the largest volumes landing in the Philippines (6.5 mg, +176%), South Korea (6.0 mg, +17%), Peru (5.7 mg, +89%), and Mexico (5.1 mg, -9%). Brazil again was notably absent from the U.S. ethanol export market. Year-to-date exports, totaling 1.16 billion gallons, are steady with last year at this time.
There were no U.S. imports on record in October, according to the monthly data. Only 17.4 mg of foreign ethanol has been imported thus far in 2023, of which essentially all was sourced from Brazil.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, tightened by 13% to a 6-month low of 896,708 metric tons (mt). Mexico was our largest destination for the sixteenth consecutive month with exports of 193,524 mt—a 4% decrease from September. DDGS exports to Vietnam were robust at 121,271 mt despite a 13% decline. Shipments strengthened to Canada, up 47% to a 16-month high of 92,924 mt. Other larger markets included South Korea (76,456 mt, -31%), Indonesia (66,351 mt, +7%), Turkey (38,325, +22%), Japan (35,451 mt, +1%), and China (30,530 mt, -8%). There was a notable lift in exports to Central American countries (a 5-year high) as well as record volumes to Cambodia. Year-to-date U.S. DDGS exports total 8.99 million mt, which lags 4% behind last year at this time.
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