In the News

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.

Ethanol Producer Magazine

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.

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Renewable Fuels Association

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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Ethanol Producer Magazine

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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Ethanol Proucer Magazine

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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Ethanol Producer Magazine

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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Renewable Fuels Association

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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US Grains Council

Nov 30, 2023

The U.S. Grains Council (USGC) recently participated in a panel at the Latin American Energy Organization's (OLADE's) annual Energy Week. Pictured from left to right, the panel included Juan Diaz, USGC Latin America regional ethanol consultant; Julio Minelli of the Brazilian Association of Biofuels Producers; Flavio Castellari of the Brazilian Ethanol Cluster; Patrick Adam of the Chamber of Corn Ethanol in Argentina; Agustin Torroba of the Inter-American Institute for Cooperation on Agriculture; and Yamila Hana of the National Alcohol and Portland Fuels Administration.

Earlier this month, the U.S. Grains Council (USGC) was invited by the Latin American Energy Organization (OLADE) to participate in a panel, “Opportunities for Liquid Biofuels in Latin America and its Role in the Decarbonization of the Transportation Sector,” during the VIII Energy Week event held in Montevideo, Uruguay.

OLADE offers technical assistance and helps ensure cooperation and coordination in promotion and use of Latin America’s energy resources.

“The Council’s participation, along with IICA and the Pan American Coalition for Biofuels, represents an opportunity to provide updated information on the role of biofuels in decarbonizing the transportation sector and illustrating the capability that the Americas, as a region, has to expand the use of biofuels and become a successful case to emulate in the world,” said Juan Diaz, USGC Latin America (LTA) regional ethanol consultant.

The  panel  featured USGC’s LTA Regional Ethanol Consultant Juan Diaz; Yamila Hana of the National Alcohol and Portland Fuels Administration (ANCAP); Patrick Adam of the Chamber of Corn Ethanol in Argentina (Biomaíz); Julio Minelli of the Brazilian Association of Biofuels Producers (Aprobio); Flavio Castellari of the Brazilian Ethanol Cluster (APLA); and Agustin Torroba of the Inter-American Institute for Cooperation on Agriculture (IICA), who discussed biofuel’s contribution to the decarbonization of the transportation sector. The discussion also highlighted the potential the LTA region has to expand the production and the promotion of biofuels.

The Council shared a timeline of the ethanol industry and how the United States was able to create an industry that is the largest ethanol producer in the world but also one of the most committed industries to reach net zero by 2050. The audience was impressed by the ambitious goals of the U.S. ethanol industry, including the 2030 milestone of ethanol creating a 70 percent carbon reduction compared to gasoline.

“While there has been a lot of attention paid to electro-mobility in the energy transition discussion, the organizations participating in this session elevated the use of biofuels as an alternate solution in determining a pathway to replace fossil fuels with other cleaner sources,” Diaz said.

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