In the News
May 25, 2022
U.S. fuel ethanol production expanded by more than 2 percent the week ending May 20, according to data released by the U.S. Energy Information Administration on May 25. Ethanol stocks were down slightly.
Fuel ethanol production averaged 1.014 million barrels per day, up 23,000 barrels per day when compared to the 991,000 barrels per day of production reported for the previous week. The week ending May 20 marks the first time since the week ending April 1 that production has surpassed 1 million barrels per day. When compared to the same week of last year, production for the week ending May 20 was up 3,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 23.712 million barrels the week ending May 20, down 79,000 barrels when compared to the previous week. When compared to the same week of last year, stocks for the week ending May 20 were up 4.732 million barrels.
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May 23, 2022
It’s no secret the cost of gasoline is through the roof – and with summer around the corner, prices could climb higher. As a result, the cost of groceries and other goods are also ticking up, and hardworking families are feeling the pinch.
No matter who some politicians might try to blame, finger-pointing isn’t going to solve the problem. We need results. And the Midwest is sowing a solution.
I’m lucky enough to represent more than 7,000-square miles of Northwest and Central Illinois — home to nearly 10,000 family farms and seven biofuels plants in and around our Congressional District. These plants support American jobs and drive economic growth in our rural communities as they turn corn grown right here in the Heartland into ethanol for cars and trucks.
When we blend ethanol into our gasoline, it reduces harmful emissions almost in half, brings down the price for consumers by up to 60 cents per gallon and supports American farmers.
Most Americans are more focused on the dollars and cents clicking upward on the pump than the label on it as they’re filling up. But the E10 and E15 labels can make a whole lot of difference in how much you shell out. What these labels tell us is how much ethanol has been blended into the gasoline we’re buying. For example, E15 is fuel containing 15 percent ethanol and 85 percent gasoline. And if you’re paying attention, you’ll see that fuel with higher blends of ethanol is much easier on the pocketbook.
Ethanol is home-grown and American-made.
While importing foreign oil involves costs for transportation and tariffs, biofuels like ethanol are grown and produced right here in America. So instead of supporting oil moguls in the Middle East or Russia, we’re boosting demand for corn grown by American farmers, and produced at plants that support jobs and prosperity here at home.
Ethanol blending increases America’s fuel supply.
Part of the reason gasoline prices are so high right now is because of high demand and low supply. But when we add ethanol to the gasoline we already have, it means there’s more overall fuel to go around. By bolstering the low supply of oil with the increased use of corn ethanol, we can increase our overall fuel supply and bring down prices across the board.
Ethanol is less expensive per gallon.
Not only does ethanol strengthen our fuel supply, but it also reduces the cost of each gallon of gasoline you buy at the pump. Because ethanol is less expensive per gallon than traditional gasoline, a gallon of E15 blended gas can be up to 50 to 60 cents per gallon cheaper.
With the average American purchasing 421 gallons of gas a year, this could mean savings up to $252 annually for consumers!
OK, you may be asking: "I’m ready to support American farmers, increase our nation’s fuel supply, and pay less at the pump! But can my car handle ethanol?"
The U.S. Environmental Protection Agency advises that E15 is safe to use on vehicles manufactured from 2001 through today. And because we’ve been blending ethanol into gasoline for decades, automakers have already made sure that seals, hoses and gaskets in the vehicles they make can handle higher blends of ethanol, like E15.
Would more corn used for ethanol reduce our food supply or increase prices at the grocery store?
The short answer is no. If you’ve ever driven around the Heartland, you’ll see that we have plenty of corn to go around! And the corn used for ethanol isn’t what you eat off the cob. What you may not know, is that the feed corn used for ethanol becomes nutrient-dense distillers grain after production. This is then used as the second-largest source of animal feed in the United States!
So how can our policies leverage American biofuels to reduce gas prices? Thankfully, President Biden is leading the way in supporting ethanol blending. Recently, the Administration announced it would rescind 31 oil refinery waivers that would have allowed oil companies to avoid blending ethanol into their supply. And just this month, President Biden announced an emergency rule to reverse a freeze on E15 sales this summer. Both of these actions are important moves to prevent a continued rise in gas prices for consumers.
Moving forward, I’m continuing to work with my colleagues on the bipartisan House Biofuels Caucus to secure year-round sales of E15, and pass the Home Front Energy Independence Act, which would expand the production and availability of American biofuels to help lower fuel costs for hardworking men and women across the country.
By utilizing American-made ethanol, we can help counter high gas prices and keep costs down for hardworking families across the country and work toward a cleaner and healthier future.
Democrat Cheri Bustos represents the 17th District of Illinois.
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May 23, 2022
To help countries cut their greenhouse gas emissions and to meet their Paris Climate Commitments, the U.S. Grains Council and its industry partners continue to advocate for ethanol as an option for the decarbonization of the transportation sector and an important tool to aid in the reduction of greenhouse gas (GHG) emissions globally. The Council participated in the discussions, which recently lead to the United Kingdom announcement of a nationwide E10 mandate, a move that could lead to an increase in U.S. ethanol exports to the U.K.
In 2018, the U.K. made a policy proposal announcement that they were considering doubling their current 5 percent ethanol blend mandate to reduce GHG emissions. Following the announcement and with the support of ATP funding, the U.S. Grains Council actively engaged with U.K. government agencies to advise on the policy proposals and provide information on the benefits of ethanol in the fuel sector.
In September 2018, the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association submitted comments to the U.K. Department for Transport to support the expanded use of ethanol to help meet its GHG emissions reductions target, as U.S. corn-based ethanol has improved significantly in carbon intensity. The Council’s comments also included information about the environmental benefits of ethanol and the cost saving benefits of ethanol.
In March 2020, the U.S. industry participated in the Introducing E10 Petrol: Consultation process that included providing public comments and participating in a series of multistakeholder meetings hosted by the U.K. Department for Transport. In February 2021, the United Kingdom announced its commitment to introduce a ten percent ethanol blend standard (E10) nationwide by September 2021. The U.K.’s movement to E10 will not only help the country to achieve its climate goals but also expand the market for both U.K. and U.S. ethanol producers. The Council believes that the E10 policy will lead to a higher blend nationwide.
The EU-27+UK has typically been one of the top 10 export destinations of U.S. ethanol. Current gasoline blends in the U.K. contain no more than 5 percent ethanol (E5). The new policy will create an opportunity for additional U.S. exports of ethanol to the U.K. of 140 million gallons. New demand is expected to be around 115 million gallons, in addition to the nearly 25 million gallons already being exported. The potential in the United Kingdom with an E10 mandate could exceed $195 million. The Council’s direct engagement using ATP funds allowed the Council to be an advisor in the regulatory development process and ensure that ethanol was properly valued in its role as a reducer of GHG emissions.
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May 18, 2022
Ethanol Producer Magazine announced this week the keynote speakers for the 2022 International Fuel Ethanol Workshop & Expo (FEW) taking place, June 13-15, 2022, in Minneapolis, Minnesota.
"This is a truly dynamic time for renewable fuels," said Tim Portz, program director for the FEW. "There's an incredible opportunity before us as the country drives towards low-carbon energy production and use—and this year's FEW will capture that excitement. We're looking forward to hearing from association leadership, along with two of the industry's top CEOs, to better understand what's being done to ensure that ethanol remains a significant contributor to our country's low-carbon, clean energy economy ambitions."
The 38th annual FEW Policy Keynote Address will be given by Emily Skor, CEO of Growth Energy. Skor is expected to discuss the industry's focus on permanently restoring year-round access to E15, among many other industry priorities.
Following Skor's address, a panel of industry association leaders will unpack the industry's top policy and regulatory achievements, challenges and objectives. This year's policy roundtable includes: Chris Bliley, Senior Vice President of Regulatory Affairs, Growth Energy; Troy Bredenkamp, Senior Vice President, Government and Public Affairs, Renewable Fuels Association; and Brian Jennings, CEO, American Coalition for Ethanol.
For the first time at the FEW, a Producer Keynote Address will be given by Todd Becker, President, CEO and Director of Green Plains Inc. Under Becker's leadership, Green Plains is transforming its fleet of ethanol plants into more diversified biorefineries. The company has embraced its role as a disruptor in what Becker sees as a renaissance of ethanol production brought on by new, high-value production derivatives—protein, oil, clean sugar, high-purity alcohol and more. Recently, Green Plains announced that ongoing product and technology innovation has led to the unprecedented production of greater than 60 percent protein concentrations at its Wood River, Nebraska, biorefinery. Becker is expected to discuss this and other exciting developments within Green Plains.
Bruce Rastetter, CEO of Summit Agricultural Group, will close out the general session with a highly anticipated update on the planned Summit Carbon Solutions pipeline, which will capture and permanently store up to 20 million tons per year of carbon dioxide from dozens of Upper Midwest ethanol plants. Earlier this month, Summit completed its equity fundraising, which resulted in more than $1 billion in total equity commitments.
"The General Session at the FEW has become one of the most important annual moments for ethanol producers, where attendees can hear about the current state of the industry, how it's changing, and where it's going," says John Nelson, vice president of operations, sales and marketing at BBI International. "Perhaps the hottest topic being discussed this year is the ethanol industry's role in lowering the carbon intensity of transportation fuels—not just ethanol itself, but fuels that can be made from it such as sustainable aviation fuel. We are thrilled to have some of the biggest names in the industry with us, in person, to talk about that, and so much more."
To view the agenda, click here.
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May 11, 2022
U.S. fuel ethanol production expanded by more than 2 percent the week ending May 6, according to data released by the U.S. Energy Information Administration on May 11. Stocks were up more than 1 percent for the week.
Fuel ethanol production averaged 991,000 barrels per day the week ending May 6, up 22,000 barrels per day when compared to the 969,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending May 6 was up 12,000 barrels per day.
Weekly stocks of fuel ethanol increased to 24.214 million barrels for the week ending May 6, up 253,000 barrels when compared to the 23.887 million barrels of stocks reported for the previous week. Whencompared to the same week of last year, stocks for the week ending May 6 were up 4.747 million barrels.
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May 12, 2022
MoistTech Corp. provides manufacturers with the capabilities to increase production quality through continuous monitoring, maintains plant efficiency that decreases human error and surveys ways to reduce front end expenses. Plant managers have immediate access to real time data monitoring to make immediate line adjustments to ensure optimal processing and quality control standards.
Highlighting the need for companies to thoroughly evaluate their current methods of reducing waste – wasted efforts, wasted energy and wasted product - data collection of moisture content throughout the manufacturing process can create a multitude of ways for plant managers to implement process improvements. Evaluating and implementing lean manufacturing principles assists in eliminating waste and improving overall plant production.
When considering the many challenges that plant operators are tasked with, moisture control plays a large role. Moisture content can affect product quality and equipment function, making it a crucial focus point in proactive avoidance of quality control issues. Dryer effectiveness is critical, as dryers consume a large amount of energy during operation. The implementation of moisture measurement before and after the dryer provides immediate control over the temperature and operational efficiency, which saves energy and increases overall efficiency.
The power of the data collected during moisture monitoring provides the end user with instant profitability measures, saving manufacturers time and money by quickly detecting the variable manufacturing process, allowing corrections to be made in real time.
Ideally, a moisture control system should be able to accurately detect moisture at different stages of the manufacturing process, be easy to maintain and be tough enough to withstand the harsh production environment. The installation of an NIR moisture detection device prevents out-of-specification product due to undesirable moisture levels, allowing the facility to fine tune the set-up to make sure a more consistent, higher quality product is produced – ultimately improving the bottom line. In other words, clients save money and time, and prevent negative results due to inconsistencies and human error.
Over-drying a product can result in a dusty environment that can lead to a fire or dust explosion. As such, greater plant safety is achieved with a proper moisture measurement system and cost savings are enhanced. By implementing a moisture detection process, producers can monitor 100% of their product quality instantly and consistently. Additionally, active adjustments can continuously be made to the process, optimizing the outcome.
May 4, 2022
U.S. fuel ethanol production expanded by nearly 1 percent the week ending April 29, according to data released by the U.S. Energy Information Administration on May 4. Stocks of fuel ethanol were down slightly.
U.S. fuel ethanol production averaged 969,000 barrels per day the week ending April 29, up 6,000 barrels per day when compared to the 947,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending April 29 was up 17,000 barrels per day.
Stocks of fuel ethanol fell to 23.887 million barrels the week ending April 29, down 78,000 barrels when compared to the 23.965 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending April 29 were up 3.447 million barrels.
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May 5, 2022
Total operable biofuels production capacity for ethanol, biodiesel, renewable diesel and related fuels expanded to 21.123 billion gallons per year in February, up 11 MMgy when compared to the 21.112 billion gallons of capacity in place in January, according to data released by the U.S. Energy Information Administration on April 29.
Fuel ethanol capacity was at 17.423 billion gallons per year in February, up 24 MMgy when compared to the 17.399 billion gallons in place the previous month. When compared to February 2021, ethanol capacity was down 32 MMgy.
Biodiesel production capacity fell to 2.232 billion gallons per year in February, down 13 MMgy when compared to the 2.245 billion gallons of capacity in place the previous month. When compared to the same month of last year, biodiesel capacity in February was down 162 MMgy.
Capacity for renewable diesel and other biofuels, defined to include renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, was at 1.468 billion gallons per year in February, flat with the previous month. When compared to February 2021, capacity for these fuels was up 677 MMgy.
Total feedstocks consumption for February was at approximately 24.348 billion pounds, down from 27.827 billion pounds the previous month, but up significantly when compared to the 18.85 billion pounds of feedstock consumed in February 2021.
Biofuel producers consumed 22.74 billion pounds of corn in February, down from 25.957 billion pounds in January, but up when compared to the 18.644 billion pounds consumed in February 2021.
Grain sorghum consumption was at 133 million pounds in February, down slightly from 139 million pounds the previous month. The EIA withheld the volume of grain sorghum consumed by biofuel producers in February 2021 in order to avoid disclosure of individual company data.
Approximately 741 million pounds of soybean oil went to biofuel production in February, down from 791 million pounds in January, but up when compared to the 552 million pounds consumed in February 2021.
Corn oil consumption was at 188 million pounds in February, down from 249 million pounds the previous month, but up when compared to the 155 million pounds that went to biofuel production in February of last year.
The EIA withheld the volume of canola oil that went to biofuel production in February, but reported that 64 million pounds of canola oil was used to produce biofuel in January 2022, along with 85 million pounds in February 2021.
Biofuel producers consumed 306 million pounds of yellow grease, 130 million pounds of beef tallow, 38 million pounds of white grease and 13 million pounds of poultry fat in February. Consumption levels in January were 364 million pounds, 141 million pounds, 43 million pounds and 15 million pounds, respectively. In February 2021, biofuel producers consumed 198 million pounds of yellow grease, 66 million pounds of beef tallow, 50 million pounds of white grease and 34 million pounds of poultry fat.
The EIA reported that an additional 59 million pounds of feedstock classified as “other” recycled feeds and wastes went to biofuel production in February, down from 64 million pounds the previous month, but up from 52 million pounds in February 2022.
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ClearFlame Engine Technologies
Apr 29, 2022
Geneva, IL — ClearFlame Engine Technologies, an Illinois-based company empowering rapid decarbonization for global heavy-duty industry, announced today the publication of an independent study that finds ClearFlame’s technology could help fleet owners and other heavy-duty truck operators lower total costs while meeting sustainability goals sooner than currently available alternatives.
The study was conducted by Gladstein, Neandross & Associates (GNA) and commissioned by ClearFlame, whose investors include Bill Gates-founded Breakthrough Energy Ventures, John Deere, Mercuria, and Clean Energy Ventures. It analyzed the total cost of ownership (TCO) and expected emissions performance of ClearFlame’s proprietary engine modification technology in the over-the-road heavy-duty truck market versus other options.
Study Highlights:
- ClearFlame-enabled trucks are expected to have the lowest TCO when compared with diesel, natural gas, electric, and hydrogen platforms.
- ClearFlame’s cost per mile is expected to be substantially lower than electric and hydrogen platforms—40% less than electric and 30% less than hydrogen.
- ClearFlame can provide a quick and cost-effective path to substantial reductions of greenhouse gas (GHG) and tailpipe emissions compared to other sustainable fuels and technologies, whose practical challenges, such as cost, range, infrastructure, and fuel availability, have slowed adoption.
- ClearFlame is estimated to provide a 42% lifecycle carbon reduction compared with diesel, as well as approximately 22% lower GHG than battery electric vehicles based on the national average grid mix.
The TCO analysis was conducted when diesel fuel’s national average was $3.48 per gallon in October 2021 and found that ClearFlame-enabled trucks would have a lower TCO than diesel by $0.08 per mile, lower than natural gas by $0.09 per mile, lower than electric by $0.97 per mile, and lower than hydrogen platforms by $0.61 per mile.
The report also highlights the potential for even greater GHG reductions using other feed sources developed by the ethanol industry with lower carbon intensities. For instance, further improvement to ethanol production processes—such as utilizing more corn fiber and stover, or adding carbon capture to production facilities—would result in GHG emissions reductions of 69-83% compared with diesel, depending on the region.
The report further highlights that ClearFlame can significantly reduce tailpipe PM2.5 by 99%, DPM by 100%, and SOx by 95% relative to traditional diesel fuel. While ClearFlame’s technology is expected to meet all the same emissions regulations for modern diesel engines, it is also fully expected to meet the stricter standards being enacted by California’s Low NOx Heavy-Duty Omnibus Regulation and proposed by the U.S. EPA, without the additional cost and complexity facing diesel engines.
Finally, the report also finds that while electric and hydrogen platforms have the potential to provide zero tailpipe emissions, these technologies are far from being commercially available for long-haul trucking, and fueling and charging infrastructure remains a significant barrier, as do the costs per mile. As a result, technologies like ClearFlame are one of the only options to quickly provide cost-effective GHG and tailpipe emissions reductions for fleets. ClearFlame is on track to conduct on-road testing with select fleet partners beginning in Q2 of this year.
Author of the study Patrick Couch of Gladstein, Neandross & Associates, said: “This study clearly shows that ClearFlame’s technology can provide significant and cost-effective GHG and tailpipe emissions reductions in the immediate future. While most of the discussion around sustainable fuels today focuses on compressed natural gas, battery-electric, and hydrogen fuel cell vehicles, alcohol fuels have the potential to play a valuable role in sustainable transportation. ClearFlame’s engine technology and ethanol fuel supply model could address the historic barriers to the adoption of ethanol fuels in the heavy-duty market.”
BJ Johnson, ClearFlame’s CEO and Co-Founder, added: “This study validates what we’ve been saying for some time—ClearFlame’s engine modification technology not only takes the dirty diesel out of diesel engines, it is also less expensive in total cost of ownership than diesel, electric, natural gas, and hydrogen. Moreover, ClearFlame offers a sustainability solution that is rapidly implementable at scale. It’s critical that emission reductions begin as quickly as possible if we are to meet our 2050 net-zero greenhouse emissions goals. There is no such thing as a perfect silver bullet, so we need to embrace all technologies available to us – and it’s an easy choice when that technology also offers substantial cost savings.”
Julie Blumreiter, ClearFlame’s Co-Founder and Chief Technology Officer, noted: “ClearFlame’s technology is fuel agnostic, and our ability to run on clean, low-cost and readily available 100% plant-based biofuels allows us to capitalize on the 15 billion gallons of ethanol already produced in the U.S. each year; a fuel source that is both abundant and has a path to net zero, and even net-negative status. Further, it enables us to leverage existing fueling and charging infrastructure, all while utilizing tech already familiar to fleets and the 250k+ trained diesel mechanics across the U.S.”
ClearFlame spokespeople will be on hand to discuss the results of the TCO study at the 2022 Advanced Clean Transportation (ACT) Expo in Long Beach, Calif. May 9-12, Booth 339 and will showcase their class 8 truck onsite at the show as well.
To download the study, please visit http://clearfla.me/tco-pr.
About ClearFlame Engine Technologies
At ClearFlame Engine Technologies, we’re breaking the bond between the diesel engine and diesel fuel, accelerating the path to true emissions reduction for the heavy-duty and off-highway markets. Our technology meets global sustainability goals using decarbonized liquid fuels available throughout the world. Our technology lowers costs by negating the need for complex aftertreatment technologies without compromising the practicality or performance of traditional diesel engines. For more information, visit www.clearflame.com, and follow us on LinkedIn and Twitter (@ClearFlameEng).
Read the original press release here.
Apr 29, 2022
CEDAR RAPIDS, Iowa - Fluid Quip Technologies (FQT), a majority owned subsidiary of Green Plains Inc. (NASDAQ: GPRE), today unveiled DCO+TM, a new technology to achieve record-high low-carbon renewable corn oil recovery in dry grind biofuel facilities. A recent full- scale demonstration of DCO+TM at Green Plains Wood River achieved a breakthrough 1.4 pounds per bushel low-carbon renewable corn oil yield when integrated in a full MSCTM system. As a standalone system, DCO+ can achieve up to a 40% increase in overall production of corn oil. FQT will offer this valuable solution to other biofuel plants throughout the industry.
DCO+TM utilizes FQT’s patented technologies to liberate additional distillers corn oil from the fiber fraction in the distillers grains. The DCO+TM technology was born from FQT’s patented MSCTM protein separation system and is integral to the high corn oil yields those systems produce.
“This new renewable corn oil capture technology comes from years of experience operating our MSC systems and is an immediate game changer for Green Plains and for the industry,” said Michael Franko, Managing Director, Fluid Quip Technologies. “With DCO+, independent plants looking for low-cost revenue enhancing projects can take advantage of up to 40% more corn oil, a valuable low-carbon feedstock for the rapidly expanding renewable diesel industry.”
Benefits of DCO+TM include:
- Up to 40% additional corn oil recovery
- Thin Stillage Clarification
- Organic acid reduction/healthier fermentation
- Lower suspended solids in evaporator stream
- Performance guarantees
FQT is now offering this game-changing technology package broadly to the industry.
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) provides proprietary technologies and engineering services to the biofuel and biochemical industries worldwide. FQT has commercialized multiple technologies to enhance the base corn-to-ethanol dry grind process, create new and novel alternative feed products, and supply the growing need for carbohydrate feedstocks into the biochemical market.
Read the original press release here.
Apr 28, 2022
U.S. governors from eight Midwest states, many of which are major corn producers, asked the Biden administration on Thursday to apply rules that would allow gasoline blended with a higher level of ethanol to be sold year-round in their states.
Governors from Iowa, Illinois and Minnesota said in a letter to the Environmental Protection Agency that allowing the blend, known as E15, year-round would help lower gasoline prices, which have risen to over $4 per gallon after Russia's invasion of Ukraine.
Earlier this month, President Joe Biden unveiled plans to allow summertime sales of E15, which blends gasoline with 15% ethanol. A summertime ban on E15 was imposed over concerns it contributes to smog in hot weather, though research has shown that the 15% blend may not increase smog releative to the more common E10 sold year-round. E10 contains 10% ethanol.
Biofuel advocates, however, want a more permanent action that allows for year-round sales of E15. Expanded sales of the blend would likely broaden demand for corn-based ethanol.
Under the Clean Air Act, governors asked the EPA to put the specifications for volatility of E15 and E10 on equal footing. The Midwest governors told the EPA on Thursday that they are pursuing this route to enable year-round E15 sales.
"These states have guided the way forward on E15," said Renewable Fuels Association President Geoff Cooper, "and we call on other states and the EPA to follow their lead, so that the benefits of E15 can be permanently enjoyed by drivers across the nation."
The states involved in Thursday's action are home to 57% of the nation's 2,512 stations currently selling E15, the RFA said.
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Apr 20, 2022
Today’s corn ethanol now provides nearly three times the energy used to produce it, according to a new analysis by the Renewable Fuels Association, with some biorefineries approaching a four-to-one energy ratio. This continuing improvement in energy balance reflects improved efficiencies in corn production and ethanol processing.
“Our nation’s corn farmers and ethanol biorefineries have been working harder and smarter to improve productivity, and that clearly shows in these new numbers,” said RFA Chief Economist Scott Richman. “This is an important message for policymakers and regulators who should note the progress our industry and its suppliers are making when it comes to sustainability and energy conservation, and it should set the record straight as some detractors continue to dredge up decades-old allegations.”
Richman noted that estimates of the average energy balance ratio for corn ethanol have increased sharply over time. In RFA’s previous analysis, released in March 2016, the association conservatively found the average energy balance ratio of corn ethanol was likely in the range of 2.6 to 2.8, with the top quartile of dry mill biorefineries averaging 3.2 to 3.4.
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Apr 18, 2022
The International Energy Agency in March released a report predicting that global biofuels supply will reach 3.3 million barrels per day by 2026, up from 2.6 million barrels per day in 2020. The forecast was included in the organization's Oil 2021 report, which includes analysis and forecasts through 2026.
Global ethanol production is set to grow by 33,000 barrels per day from 2020 to 2026 with China, India and Brazil responsible for most of that capacity growth. The production of biodiesel and hydrotreated vegetable oils (HVO) is expected to expand by 380,000 barrels per day over the same period, led primarily by capacity expansions in the U.S., Indonesia, and Malaysia.
The IEA predicts that U.S. ethanol production will not recover to 2019 pre-pandemic levels during the forecast period. "Assuming no policy changes and stable exports, production is 2026 will be [80,000 barrels per day] lower than in 2019 as domestic gasoline demand starts to decline,” the IEA said in the report. “By contrast, HVO production continues to grow strongly, supported by a number of policies that drive HVO investments, including the Renewable Fuel Standard, renewable identification numbers [RINs] prices, LCFS credits, and the biodiesel blender credit.”
In Brazil, the IEA predicts that recovery in gasoline demand and higher RenovaBio goals for decarbonization credits will underpin a rebound in ethanol production over the medium term. Brazilian corn ethanol production is expected to expand, with several new plants under development. The IEA expects Brazilian ethanol supply to average 660,000 barrels per day in 2026, up 35,000 barrels per day when compared to 2019.
China is expected to see the strongest growth in ethanol production, according to the IEA. The agency predicts production will reach 160,000 barrels per day by 2026, up from 70,000 barrels per day in 2020. Ethanol production is also expected to increase in India, reaching 70,000 barrels per day by 2026, up from 30,000 barrels per day in 2020.
In Indonesia, biodiesel production is expected to expand to 190,000 barrels per day in 2026, up from 140,000 barrels per day in 2020. Malaysian biodiesel production is expected to reach 40,000 barrels per day in 2026. In Europe, HVO and biodiesel production are expected to reach 320,000 barrels per day in 2026, up 40,000 barrels per day when compared to 2020.
A full copy of the report is available on the IEA website.
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Apr 4, 2022
WEST LAFAYETTE, Ind. — Capturing the interactions between biofuels and agricultural industries and their connections with other economic activities was key to a first-of-its kind study.
“This is the first comprehensive examination of market factors and policies on the expansion of biofuels production in the U.S. to examine the economic impact of these individual drivers separately,” said Farzad Taheripour, the Purdue University agricultural economist who led the study. “We found that RFS played a critical role in reducing uncertainties in commodity markets, and its most significant impact was to help farmers use their resources more efficiently. With producing more corn and soybeans, over time the farmers were able to bring fallow land that had been unused back to production, and U.S. annual farm incomes increased by $8.3 billion between 2004 and 2011, with an extra additional annual income of $2.3 billion between 2011 and 2016.”
Over the past 15 years, production and consumption of biofuels have increased in the U.S. due to various factors including market forces and biofuel policies, he said. The Renewable Fuel Standard, or RFS, policy requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. Examples of renewable fuels include the biofuels ethanol, most often made in the U.S. from corn; and biodiesel, most often made from soybeans. The policy was established in 2005, and was expanded and extended by the Energy Independence and Security Act of 2007.
The economic study looked at both short- and long-term price impacts of policies and other market forces on the expansion of the biofuels industry and was able to identify the impact of each individual market driver. A paper detailing the team’s work is available in the journal Frontiers in Energy Research.
“A hybrid of models is needed to accurately assess the situation – one model can’t capture it all,” said Taheripour, a research professor of agricultural economics and member of Purdue’s Center for Global Trade Analysis or GTAP. “An introduction of a new policy shocks the market, but only for the short term. In the long run, people adjust, things stabilize and the true impact can be seen. For example, we are experiencing a shock now in crude oil. People are reacting to the war in Ukraine and to uncertainty, but we don’t yet know how it will impact the market on a scale of years or decades.”
The team developed economic analyses using both partial and general equilibrium models, which are the best modeling frameworks for short- and long-term analysis, respectively, he said. Through this work the team was able to differentiate the economic impacts of the RFS from other drivers that helped biofuels production grow and to evaluate the short- and long-run price impacts of RFS, as well as the contributions of the policy to improvements in farm incomes and use of agricultural resources.
A key model used by the team was Purdue’s GTAP-BIO computational general equilibrium model for land use analyses related to the environmental, agricultural, energy, trade, and biofuel policies and actions. The model separates oil crops, vegetable oils, and meals into several categories. In addition to the standard commodities and services, the model includes the production and consumption of biofuels - corn ethanol, sugarcane ethanol, and biodiesel - and their by-products of dried distiller grains, commonly referred to as DDGS, and meals.
“The model takes into account the use of commodity feed stocks for food and fuel, and the competition or trade-offs between those and other market uses,” Taheripour said. “It also traces land use and handles intensification in crop production due to technological progress, multicropping and conversion of unused cropland to crop production. This is the first biofuels study to be able to piece out all of these factors individually and to combine that information with short-term models to capture finer and shorter-term impacts.”
Taheripour collaborated with Harry Baumes, a member of the National Center for Food and Agriculture Policy in Washington, D.C., and Wallace E. Tyner, the late James and Lois Ackerman Professor of Agricultural Economics at Purdue.
“When we analyze policy implications, we need to look comprehensively and have a broad perspective,” Taheripour said. “The goal of my research is to guide policy makers to the best and most informed decisions that are safe and benefit us all.”
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Apr 6, 2022
The U.S exported 143.07 million gallons of ethanol and 870,844 metric tons of distillers grains in February, according to data released by the USDA Foreign Agricultural Service on April 5. Exports of both products were up when compared to February 2021.
The 143.7 million gallons of ethanol exported in February was up when compared to both the 123.82 million gallons exported the previous month and the 101.67 million gallons exported in February 2021.
The U.S. exported ethanol to more than 40 countries in February. Canada was the top destination for U.S. ethanol exports at 30.98 million gallons, followed by India at 25.64 million gallons and South Korea at 18.27 million gallons.
The value of U.S. ethanol exports reached $352.78 million in February, up from $322.64 million in January and $193.96 million in February of last year.
Total ethanol exports for the first two months of 2022 reached 266.89 million gallons at a value of $675.43 million, compared to 266.31 million gallons exported during the same period of 2021 at a value of $449.62 million.
The 870,844 metric tons of distillers grains exported in February is down when compared to the 1.09 million metric tons of exports reported for January, but up from the 799,324 metric tons exported during the same month of last year.
The U.S. exported distillers grains to nearly three dozen countries in February. Mexico was the top destination for U.S. distillers grains exports at 203,911 metric tons, followed by South Korea at 104,218 metric tons and Canada at 102,421 metric tons.
The value of U.S. distillers grains exports was at $245.89 million in February, down from $284.67 million the previous month, but up from $199.31 million in February of last year.
Total distillers grains exports for the first two months of 2022 reached 1.96 million metric tons at a value of $530.56 million, compared to 1.7 million metric tons exported during the same period of last year at a value of $423.25 million.
Additional data is available on the USDA FAS website.
Read the original story here.
Apr 5, 2022
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and John Thune (R-SD) urged the Environmental Protection Agency (EPA) to update its greenhouse gas modeling for biofuels. Specifically, the senators requested the EPA adopt the Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model. These long-overdue updates would permit consistent comparison between petroleum-based fuels, natural gas systems, electric generation, and renewable fuels.
“We urge you to adopt Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model. Adopting the GREET Model will not only permit the federal government to further standardize its comparison of GHG emissions for biofuels like ethanol, biodiesel, and sustainable aviation fuel, but enable over 50,000 registered GREET users to more readily compare renewable fuels to other sources of energy,”the senators wrote to EPA Administrator Michael Regan.
“We applaud EPA for reviewing and updating its GHG modeling resources in accordance with its obligations under the RFS to ensure that accurate and reliable data can remain central to policies concerning energy consumption and reducing emissions,”the senators continued.“We hope that EPA will use the GREET Model as its primary resource for determining lifecycle GHG emissions of biofuels, which could immediately contribute to ongoing efforts to reduce energy emissions.”
The letter was also signed by U.S. Sens. Sherrod Brown (D-OH), Dick Durbin (D-IL), Tammy Duckworth (D-IL), Joni Ernst (R-IA), Chuck Grassley (R-IA), Roger Marshall (R-KS), and Mike Rounds (R-SD).
Last February, Klobuchar and Thune introduced theAdopt GREET Act, bipartisan legislation that would require the EPA to update its greenhouse gas modeling for ethanol and biodiesel. Their bill would require the EPA to update its modeling every five years, or report to Congress to affirm its modeling is current, or otherwise explain why no updates were made.
Klobuchar has been a strong advocate for investing in renewable fuel infrastructure, increasing American biofuel production, and upholding the Clean Air Act’s Renewable Fuel Standard (RFS). She recently introduced theHome Front Energy Independence Actwith Senator Joni Ernst (R-IA), bipartisan legislation to expand the availability and production of American biofuel, following President Biden’s ban on importing Russian oil.
In February, she and Senator Chuck Grassley (R-IA) led a bipartisan letter urging the Environmental Protection Agency (EPA) to prioritize the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2022; denying all pending Small Refinery Exemptions (SREs); eliminating proposed retroactive cuts to the renewable volume obligations (RVOs); and setting 2021 RFS volumes at the statutory levels.
Klobuchar and Grassley also introduced bipartisan legislation in December to provide certainty to biofuel producers by preventing the EPA from retroactively reducing RVO levels once finalized.
The full text of the letter is available HERE and below:
Dear Administrator Regan:
We write in response to the decision by the Environmental Protection Agency (EPA) to review the scientific methodology and modeling used in the transportation sector pursuant to the Renewable Fuel Standard (RFS) to accurately ascertain the GHG emissions of land-based biofuels . In support of this effort and the need for stakeholders to have a consistent and well-vetted standard through which all biofuels may be compared, we urge you to adopt Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model. Adopting the GREET Model will not only permit the federal government to further standardize its comparison of GHG emissions for biofuels like ethanol, biodiesel, and sustainable aviation fuel, but enable over 50,000 registered GREET users to more readily compare renewable fuels to other sources of energy.
As presented during the March 1, 2022, EPA workshop, the GREET Model has provided annually updated lifecycle “well-to-wheels” analysis for an expanding universe of energy sources since 1995. Importantly, the GREET Model permits consistent comparison between petroleum-based fuels, natural gas systems, electric generation, and renewable fuels derived from a variety of technology pathways, accounting for the lifecycle carbon intensity of key farming inputs. We ask that EPA utilize the GREET Model as the baseline GHG determination for biofuels so that stakeholders may have the opportunity to readily compare the GHG intensity of competing energy sources and policymakers may have a fuller picture of how to decarbonize the energy and transportation sectors.
The GREET Model has been among the most widely utilized sources of GHG data, underpinning research that finds corn ethanol can currently achieve 46 percent lower lifecycle carbon intensity than gasoline. This environmental benefit will only increase as biorefining and fuel technologies improve, the agriculture sector advances operational efficiencies and produces higher yields of renewable feedstock per acre, and as biofuel operations are paired with carbon capture projects. Updated and consistent GHG modeling can provide a positive feedback loop that drives continued progress to lower carbon intensity at both the farm and fuel level. From “field-to-tailpipe,” the reduction of carbon intensity provided by biofuels deepens as consumers select higher blends of biofuels like E15, E30, E85, and B20 for their energy needs.
We applaud EPA for reviewing and updating its GHG modeling resources in accordance with its obligations under the RFS to ensure that accurate and reliable data can remain central to policies concerning energy consumption and reducing emissions. We hope that EPA will use the GREET Model as its primary resource for determining lifecycle GHG emissions of biofuels, which could immediately contribute to ongoing efforts to reduce energy emissions.
Thank you for the timely consideration of our request and your assistance to enable homegrown biofuels to serve as a solution to our nation’s growing energy challenges.
Read the original press release here.