In the News

Ethanol Producer Magazine

Sept 25, 2023

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

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

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

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

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

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

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

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National Corn Growers Association

Sep 15, 2023

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

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

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

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

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

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

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

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

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

Read the original story here.



Ethanol Producer Magazine

Sep 18, 2023

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

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

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

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

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

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

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

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

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

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

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Ethanol Producer Magazine

Sep 13, 2023

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

Ethanol production averaged 1.039 million barrels per day the week ending Sept. 8, up 27,000 barrels per day when compared to the 1.012 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Sept. 8 was up 76,000 barrels per day. 

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

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

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Reuters

Sep 12, 2023

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

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

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

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

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

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

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

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

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

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

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

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

Read the original story here.

Renewable Fuels Association

Sep 12, 2023

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

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

Among the results:

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

When it comes to specific legislation now pending before Congress:

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

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

Read the original press release here

Ethanol Producer Magazine

Sep 7, 2023

U.S. ethanol production capacity increased by 18 MMgy between Jan. 1, 2022, and Jan. 1, 2023, despite five fewer production facilities being in existence, according to data released by the U.S. Energy Information Administration in August. 

The EIA data indicates the U.S. had 187 ethanol plants as the beginning of this year, down from 192 reported for the same time last year.

Petroleum Administration for Defense District (PADD) 2, which is located in the Midwest, contains the highest number of ethanol plants at 173, down from 177 last year. PADD 1, located along the East Coast, has three facilities, unchanged from last year. PADD 3, located along the Gulf Coast, also has three ethanol plants, while PADD 4, the Rocky Mountain Region, has four ethanol plants, both unchanged from 2022. The number of facilities in PADD 5, which includes the West Coast, dropped from five in 2022 to four in 2023.

Total ethanol plant capacity was at 17.663 billion gallons per year as of Jan. 1 of this year, up from 17.38 billion gallons per year at the same time of 2022. Capacity in PADD 2 increased by 323 MMgy, while capacity in PADD 4 increased by 20 MMgy and capacity in PADD 5 fell by 60 MMgy. Capacity was unchanged in PADD 1 and PADD 3. 

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Renewable Fuels Association

Sept 6, 2023

U.S. ethanol exports lifted 1% to a 3-month high of 113.4 million gallons (mg). Canada was our largest destination for the 28th consecutive month with a whopping 55% of global sales. A record 62.6 mg (bolstered by 58 mg in denatured ethanol)—a 23% month-over-month leap—was the fourth-largest single month U.S. exports purchased by any country. Essentially all remaining gallons were distributed to nine markets, including the United Kingdom (up 23% to 16.7 mg), South Korea (up 5% to 10.7 mg), the European Union (down 55% to 7.1 mg), Colombia (down 22% to 4.3 mg), and Mexico (down 6% to 3.9 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 818.3 mg.

For the seventh consecutive month, the U.S. did not register any meaningful imports of foreign ethanol.

Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, totaled 993,018 metric tons (mt) in July. U.S. shippers netted their largest monthly exports in a year with a collective 5% improvement over June. While imports softened 2% to 185,136 mt, Mexico held firmly for the 13th consecutive month as the largest U.S. DDGS market. Exports swung higher in Vietnam (up 11% to 124,184 mt), Indonesia (up 31% to 120,839 mt for a record high), and Turkey (roughly double at 89,859 mt) but scaled back in the European Union (down 9% to 68,879 mt), South Korea (down 26% to 64,888 mt, the lowest monthly volume in more than 3 years), and Canada (down 16% to 59,670 mt). Rounding out our top ten customers in July were Japan (56,371 mt), Morocco (30,041 mt), and Taiwan (24,526 mt). Year-to-date U.S. DDGS exports total 6.11 million mt, which is 9% behind last year at this time.

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