Ethanol Producer Magazine

December 13, 2018

By Erin Voegele

The U.S. Energy Information Administration has released the December edition of its Short-Term Energy Outlook, maintaining its November forecasts for 2018 and 2019 ethanol production, but making slight changes to quarterly production forecasts. 

The EIA currently predicts ethanol production will average 1.05 million barrels per day during the final quarter of this year. Full year 2018 production is also expected to average 1.05 million barrels per day. These forecasts are unchanged from last month.

For 2019, the EIA has maintained its full year prediction that ethanol production will average 1.04 million barrels per day. On a quarterly basis, the EIA currently predicts that ethanol production will average 1.04 million barrels per day during the first and second quarters of next year, fall to 1.03 million barrels per day during the third quarter, and increase to 1.04 million barrels per day during the final quarter of the year. All the 2019 quarterly predictions have been maintained when compared to the November STEO, except the forecast for the first quarter, which was increased from November’s prediction of 1.03 million barrels per day.

The EIA has also increased its 2018 ethanol consumption forecast. In the December STEO, the EIA predicts ethanol consumption will average 950,000 barrels per day, up from the 940,000 barrels per day predicted in November. The 2019 consumption forecast has been maintained at 950,000 barrels per day.

Read the original article: EIA Maintains 2018, 2019 Ethanol Production Forecasts

The EIA’s most recently weekly ethanol production data shows production averaged 1.046 million barrels per day the week ending Dec. 7, down from 1.069 million barrels per day the previous week.

The EIA’s most recent ethanol import data shows the U.S. imported only 36,000 barrels of ethanol in September, all from Brazil. The U.S. exported 2.141 million barrels of ethanol during the same month, primarily to Canada, Malaysia, and the Netherlands.

Renewable Fuels Association

December 14, 2018

News Release

Pioneer Press

December 13, 2018

By Bob Shaw

Biomass Magazine

December 11, 2018

By Erin Voegele

A report released by the Biofuture Platform on Dec. 10 states that the world’s greenhouse gas (GHG) reduction goals cannot be met without greater use of biofuels and bioproducts. The report also describes several barriers impeding future progress in the sector.

The 126-page report, titled “Creating the Biofuture: A Report on the State of the Low Carbon Bioeconomy,” shows how different nations that face different circumstances are dealing with the emerging advanced bioeconomy. It also assesses what could be down to help scale-up a sustainable low-carbon bioeconomy.

The report focuses on two specific bioeconomy sectors—biofuels used in transportation and non-energetic bioproducts that can be used to replace a range of fossil-based products routinely used across all economic sectors.

Regarding the U.S., the report finds that although the country is the most prominent producer and consumer of biofuels in the world, 80.1 percent of total primary energy consumption came from fossil fuels as of 2016.

In 2016, the report shows the U.S. produced 55.74 billion liters (14.72 billion gallons) of ethanol and consumed 54.51 billion liters of ethanol. The U.S. also produced 8.31 billion liters of biodiesel that year, with consumption reaching 7.8 billion liters. In total, the report shows the U.S. produced 64 billion liter of biofuels in 2016, and consumed 62.3 liters. Overall, biofuels accounted for 5.13 percent of total transportation fuel.

The report lists energy security, the establishment of a domestic bio-industry and job creation as main drivers for biofuel development in the U.S. However, a lack of financial resources, competition with fossil fuels, and regulation and policies are considered to be the main challenges for the U.S. biofuels sector.

The report also briefly addresses the advanced biofuels industry in the U.S. It lists 12 advanced biofuel facilities as being located in the U.S., the largest number of any region other than the European Union. About half the projects focused on cellulosic ethanol, with the remainder focused on the production of HVO, jet fuel, biocrude and renewable diesel.

According to the report, the key drivers for bioproducts development in the U.S. are the association with biofuels to make business more profitable, the development of new markets and a new biobased industry, the improvement of the trade balance by reducing chemical imports, and the creation of jobs. Alternatively, the lack of financial resources, fossil fuel competition, and regulations/polices are considered the greatest challenges for bioproduct production.

Globally, the report indicates that 130 billion liters of biofuels were produced in 2016, primarily first-generation ethanol and biodiesel. According to the report, global biofuel output must reach more than 200 billion liters per year by 2025 and more than 1.1 trillion liters annually by 2050 to be in line with long-term climate change mitigation scenarios developed by the International Energy Agency and the International Renewable Energy Agency. The report stresses that the production of second- and third-generation biofuels must grow dramatically if Biofuture Platform targets are to be met.

On a global scale, the report identifies four key barriers to the further development of the biofuels and bioproducts sector. First, the authors point to high levels of perceived risk as affecting the availability of financial resources for commercial-scale production, which is holding back necessary research, development and deployment. Second, the report cites a lack of competitiveness for biofuels and other bioproducts relative to fossil fuel-based alternatives in many markets. Third, the report states unfavorable policy framework do not effectively coordinate the competing needs of the agricultural economy and food system, a secure and clean energy supply, and protection of the natural environment. Finally, the report cites insufficient, unreliable or expensive supplies of sustainably sourced feedstocks as a problem impacting the sector.

“Modern bioenergy is the overlooked giant of the renewable energy field,” said Fatih Birol, executive director of the IEA. “Its share in the world’s total renewables consumption is about 50 percent today—as much as hydro, wind, solar and all other renewables combined. We expect modern bioenergy will continue to lead the field, and has huge prospects for further growth. But smart policies and rigorous sustainability regulations will be essential to meet its full potential.”

The Creating the Biofuture report was commissioned by the Biofuture Platform—a government-led, multi-stakeholder initiative created to support the development of the sustainable, low carbon bioeconomy. It is based on insights and data from 19 countries and the European Commission, collaborating as members of the Biofuture Platform coalition and the Mission Innovation Sustainable Biofuel Innovation Challenge multilateral initiative.

A full copy of the report can be downloaded from the Biofuture Platform website.

Read the original article: Report: Biofuels, Bioproducts Required to Meet GHG Goals

Bioleap

December 11, 2018

Press Release

E Energy Adams, LLC in September became the second Nebraska-based ethanol producer to implement Bioleap’s patented Dryer Exhaust Energy Recovery (DEER) system to ratchet down fuel consumption and increase overall plant efficiency at its plant in Adams, Nebraska. The addition of the new system represents the most significant reduction of natural gas use in the plant’s eleven years of operation.

In its first two months operating with DEER, which recovers and recirculates waste heat to produce clean, boiler-grade steam, the Gage County facility cut natural gas usage by approximately 20%. The improvement means that E Energy Adams, which produces over 80 million gallons of ethanol per year, shrank its overall carbon footprint.

“E Energy Adams ships most of its ethanol to California, and carbon footprint means everything. Lowering our carbon index improves our competitiveness in the industry,” said Carl Sitzmann, CEO of E Energy Adams. “Improving the environment while increasing profitability makes this a win/win project.”

“Bioleap is proud to support the Nebraska ethanol community with energy solutions,” said James Knight, President of Bioleap. “E Energy Adams should be proud of what this kind of energy performance means for its facility and for the broader ethanol industry in Nebraska, the second largest ethanol producing state in the country.”

Following Siouxland Ethanol in Jackson, Nebraska, E Energy Adams is the second biorefinery in Nebraska to partner with Bioleap and install a DEER system. With a leadership team delivering more than 30 years of expertise in biorefinery engineering, Bioleap is the first to perfect and patent an energy recovery system like DEER. The company is in conversations with a number of other leaders in ethanol production to save energy costs with DEER. The company expects to bring numerous new energy recovery systems online in 2019.

“The efficiencies we are bringing to the ethanol industry with the DEER system will save millions of dollars for our customers and have a very positive impact on the environment,” Knight said.

About the DEER System
Bioleap’s DEER system captures waste energy from the dryer/thermal oxidize system(s) to produce clean, boiler-quality steam to recirculate through the system for a handful of major gains at the facility. For more information, please visit www.bioleap.com.

About Bioleap, Inc.
Bioleap, Inc. provides innovative technical solutions and complete, turn-key engineering services to the renewable fuels industry. The company’s proprietary, patented process technologies improve energy efficiency, increase production capacity, and integrate seamlessly into existing operations.

About E Energy Adams LLC
E Energy Adams, LLC operates a dry mill ethanol plant in southeast Nebraska that processes corn into ethanol. It produces modified wet and dry distillers grain feed products, which are sold to local and regional markets. The company was founded in 2005 and is based in Adams, Nebraska.

Read the original release: E Energy Adams Saves Money and Energy with a New Heat Recovery System

National Farmers Union

December 11, 2018

Press Release

As Congress looks to revamp and coordinate federal-level policies that govern the transportation fuels and vehicles sectors, National Farmers Union (NFU) is urging legislators to expand use of high-octane, mid-level blends of ethanol in the transportation fuel supply. In doing so, policymakers have the opportunity to create lasting national policy that builds on the significant economic, environmental, and national security benefits associated with increased biofuel production and use.

NFU President Roger Johnson today submitted a statement to the House Committee on Energy and Commerce’s Subcommittee on the Environment in advance of the subcommittee’s hearing on “Discussion Draft: The 21 Century Transportation Fuels Act.”

“NFU agrees that fuel and vehicle regulation can and should work hand-in-hand to promote clean-burning, alternative renewable fuels,” said Johnson. “High octane fuels through higher blends of ethanol should be the fuel for today and the future.”

The subcommittee met to focus on synergies and opportunities for the nation’s preeminent fuels and vehicles policies – the Renewable Fuel Standard (RFS) and Corporate Average Fuel Economy (CAFE) and Greenhouse Gas (GHG) standards. In doing so, the subcommittee acknowledged that “high-octane fuels and vehicles may be an economical and technologically feasible path forward for producers and sellers of fuels and vehicles as well as the consumers who use them.”

In his statement to the committee, Johnson touted the benefits of mid-level ethanol blends, like E30. “The synergies between high octane fuels and more efficient, high compression engines must be recognized and supported. Ethanol has a very high octane number and has many other benefits that increase engine efficiency and reduce tailpipe air emissions, supporting these advanced engines. It provides these benefits at a lower cost than any other octane booster in gasoline.”

Johnson also added that “consumers would benefit from fuel cost savings, reduced price volatility, increased performance, and the energy security and environmental attributes of mid-level ethanol blends.”

He noted that NFU was pleased by recent moves by the administration to support year-round use of E15 and to accept comments on the benefits of high-octane fuels for CAFE and GHG standards. Yet, EPA has not proposed any specific regulatory actions that would remove obstacles to higher blends entering the market and that would move the country toward high-octane fuels. To that effect, Johnson recommended:

-Easing the ability to use mid-level ethanol blends as certification fuel under EPA regulations;

-Adjusting CAFE and GHG regulations to better account for ethanol content in fuels, including providing credits to support vehicles that promote increased use of renewable fuels;

-Modifying EPA emissions modeling to better account for the benefits of ethanol;

-Reconsidering EPA’s Reid Vapor Pressure requirements for mid-level ethanol blends; and

-Growing and enforcing the RFS.

“Virtually all parties, including EPA, acknowledge the GHG and fuel economy benefits of high-octane fuels in more efficient engines, and the cost-effectiveness of using higher ethanol blends to meet these goals,” said Johnson. “It’s time they act to increase the amount of mid-level blends of ethanol we use in the U.S.”

Read the original press release: Mid-Level Ethanol Blends Are the Transportation Fuel of the 21st Century, NFU Says

Euractiv

December 11, 2018

By Sarantis Michalopoulos

Ethanol will have a very important role in decarbonising the transport sector globally, the executive director of the International Energy Agency (IEA) has told EURACTIV.com. Another energy expert has said electrification will play a major role in transport but is not applicable to all sectors, which is where biofuels come in.

Speaking on the sidelines of the COP24 in Katowice in Poland, the IEA’s Fatih Birol, an influential figure in global climate change talks, highlighted ethanol’s contribution to cleaner transport.

Ethanol “is very important because it is part of the solution in terms of reducing the oil import dependence of many countries,” Birol said.

“At the same time, ethanol will help reduce CO2 emissions from the transport sector as well as other sectors,” he added.

The IEA, a Paris-based intergovernmental organisation, was established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.

Its initial goal was to help countries address major disruptions in the supply of oil. Since then, its role has expanded and it also examines energy issues ranging from oil, gas and coal supply and demand to renewable energy technologies and electricity markets.

In October, the agency published a report saying the share of bioenergy in total renewables consumption globally is about 50% today – as much as hydro, wind, solar and all other renewables combined.

Bioenergy is the “overlooked giant” in the renewable energy puzzle, the report concluded, adding it will represent the largest source of growth in renewable consumption over the period 2018-2023.

Caroline Lee, an energy policy analyst at the IEA, said electrification will help decarbonise many sectors of the economy but not all. “There are certain areas of the transport sector that are difficult to electrify and will still require liquid fuels in order to run and function properly,” she told EURACTIV, referring to aviation and heavy-duty road transport.

The electrification of car fleets is not the only solution, she said, adding that biofuels will play a significant role there as well. “Certainly, biofuels are an important part. One scenario we see is that by 2040, about 50% of the passenger cars stock is comprised of electric vehicles. This is a lot considering that currently, the percentage is 0.3% today,” she said.

Referring to electric cars, she said government’s policies are the primary driver of transport decarbonisation efforts. But there has been a pull-back in the financial subsidies of electric vehicles in a number of countries and in these cases “we see a very discreet slowdown in the deployment of these vehicles”.

Lee also noted that support for recharging infrastructure will be needed, as well as an energy grid flexible enough to accommodate high shares of electric vehicles. “These types of investments are driven by governments, not by the private sector,” she pointed out.

Read the original article: IEA Chief: Ethanol ‘Very Important’ To Reduce Oil Dependence

Renewable Fuels Association

December 7, 2018

News Release

U.S. ethanol exports totaled 175.4 million gallons (mg) in October, according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). This is nearly double (up 95%) September exports and the third highest monthly total on record—only surpassed by February (218.7 mg) and March (215.1 mg) of this year. Shipments were bolstered by the strongest demand for American ethanol in six months by Brazil.

A widespread shuffling of customers occurred in October with Brazil bumping Canada to capture the position of top U.S. customer. Brazil imported 54.5 mg—up 49.1 mg and representing 31% of U.S. export sales—as the sugarcane harvest began to wind down. Canada decreased its offtake by 12%, importing 30.7 mg or 18% of U.S. ethanol shipments in October. India boosted its purchases of U.S. ethanol to a record 29.1 mg for a 17% hold on American ethanol exports. Sales to these three countries represent two-thirds of all shipments in October. The Netherlands (10.4 mg, down 10%), the Philippines (10.2 mg, up from 1.1 mg), South Korea (7.7 mg, up 4%), and the United Arab Emirates (7.7 mg, up 4%) were other top markets. Additionally, exports to Peru doubled in October to 6.2 mg in advance of the announcement of countervailing duties on U.S. ethanol by the Peruvian government in November. Total year-to-date U.S. ethanol exports rose to 1.42 billion gallons—30% higher than the same period last year, and already a record with two months left to go in the year.

American producers shipped 91.4 mg of denatured fuel ethanol in October, a 35% increase and the highest volume on record. Despite a 7% decrease from the prior month, Canada retained a sizable lead as our top customer at 30.4 mg, or 31% of our export market for denatured product. Brazil purchased 13.0 mg (14% of sales), the second-largest monthly volume of U.S. denatured fuel ethanol on record for the country. The Netherlands (9.0 mg, or 10% market share), the United Arab Emirates (7.7 mg), South Korea (6.6 mg), and Peru (6.2 mg) were other significant markets.

October exports of U.S. undenatured fuel ethanol were 79.7 mg, shooting back up after dipping to 13.4 mg in September. Brazil accounted for more than half of the market (41.5 mg, or 52%) and India took a record 24.6 mg for 31% of global sales of U.S. undenatured ethanol. Other key markets were the Philippines (5.3 mg, or 7% of U.S. sales), Saudi Arabia (a record 2.5 mg), Mexico (1.9 mg), France (1.3 mg), and the Netherlands (1.3 mg).

October sales of ethanol for non-fuel, non-beverage purposes backed off 54% from the prior month to 4.3 mg. For the first time, Sweden was the lead customer of U.S. exports of undenatured non-fuel product with purchases of 1.7 mg (representing 91% of global product sales in October). Remaining international sales were parsed out to another fourteen countries. Most export sales (98%) of American denatured non-fuel ethanol crossed the border into Canada, equivalent to 2.4 mg.

The United States imported 31.6 mg of undenatured ethanol from Brazil in October. This is the largest monthly volume to enter in five years. Total year-to-date U.S. ethanol imports stand at 57.0 mg—essentially all sourced from Brazil. This is 2% ahead of last year at this time.

October exports of U.S. dried distillers grains with solubles (DDGS)—the main animal feed co-product generated by dry mill ethanol plants—were 1.018 million metric tons (mt). While shipments tapered slightly (1%), this was the fifth straight month that global demand breached 1 million mt. Mexico was again our top customer with 16% of global shipments, equal to 159,985 mt for a 7% increase over September. Asia remained a key destination for U.S. DDGS with the largest volumes heading to Vietnam (112,948 mt, up 1%), Indonesia (96,379 mt, up 43% to a record high), Thailand (92,959 mt, down 1%), and South Korea (81,351, down 22%). The United Kingdom and Ireland purchased a combined total of 105,224 mt, with the UK capturing record monthly imports (58% higher from September). Canada (62,982, up 13%) and New Zealand (a record 42,503 mt, up 19%) were other sizable markets. Year-to-date U.S. DDGS exports are 9.98 million mt, implying an annualized total of 11.97 million mt. If realized, U.S. distillers grains exports would capture the second-largest annual volume on record.

Read the original article: Burgeoning U.S. Ethanol Exports Third Highest on Record; Global Demand for U.S. DDGS Remains Strong