In the News
Jan 9, 2023
The government of Japan is inviting comments on proposed biofuel standards for fiscal years 2023 through 2027. The proposal also includes updated carbon intensity (CI) values for both U.S. corn-based ethanol and Brazilian sugarcane-based ethanol, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network on Jan. 3.
Japan’s current biofuel target for transportation is set to expire on March 31, 2023. In late December, Japan’s Ministry of Economy, Trade and Industry (METI) proposed an update that was developed following four expert committee meetings held during the second half of 2022, according to the report
METI is proposing to maintain the annual target volume for transport biofuels at 500 million liters (132.09 million gallons) crude oil equivalent for Japan's fiscal years 2023-2027. The report indicates that consumption of next generation biobased ethanol and sustainable aviation fuel (SAF) would count towards that target. METI also aims to set an annual target volume for next generation ethanol at 10 million liters of crude oil equivalent starting in fiscal year 2028.
Under the proposal, METI plans to keep the current greenhouse gas (GHG) emissions target at 55 relative to gasoline until the ministry updates the default CI value of gasoline. That update is expected to take place during fiscal year 2023. Following that update, the METI plans to increase the GHG reduction target for transport biofuels to 60 percent of the gasoline GHG value, according to the report.
In addition, METI is proposing to update the default CI values for ethanol to 37.1 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) for U.S. corn-based ethanol and to 28.56 gCO2e/MJ for Brazilian sugarcane-based ethanol. The values are currently set at 43.15 gCO2e/MJ and 33.61 gCO2e/MJ, respectively.
METI is accepting comments on the proposal through Jan. 17. According to the report, comments must be submitted in Japanese. METI will consider the comments and issue an updated proposal, which will also be subject to a public comment period.
A full copy of the report can be downloaded from the USDA FAS GAIN website.
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Jan 9, 2023
A new survey of registered voters shows robust support for ethanol and the Renewable Fuel Standard, while also revealing significant opposition to policies that ban liquid fuels or mandate electric vehicles. The poll was conducted for the Renewable Fuels Association by Morning Consult.
“As the new Congress settles in and begins to consider the future of our nation’s energy policy, these polling results demonstrate that Americans strongly support expanded use of lower-cost, lower-carbon renewable fuels like ethanol,” said RFA President and CEO Geoff Cooper. “Voters clearly want greater access to fuel blends containing more ethanol—like E15, E30, and E85—and they want to see more flex fuel vehicles made available. These results also make it apparent that Americans strongly oppose policies that would limit the availability of liquid-fueled vehicles or effectively force them to purchase electric vehicles. Overall, this survey is a strong indication that consumers understand and appreciate the environmental advantages, energy security benefits, and affordability that ethanol offers.”
According to the survey:
- Nearly two-thirds of survey respondents (65 percent) support the Renewable Fuel Standard, while only 15 percent expressed opposition to the program.
- Meanwhile, 64 percent of respondents have a favorable opinion of ethanol, compared to just 18 percent unfavorable.
- Regarding higher blends, 68 percent support increasing the availability of E15 to help lower fuel prices and bolster energy independence, and 66 percent said it is important for the federal government to promote the production and sale of flex fuel vehicles (capable of running on up to 85% ethanol) in the United States.
- Three out of five (60 percent) respondents support the Next Generation Fuels Act, which would drive the use of more efficient, lower-carbon liquid fuels like E25 or E30, compared to just 18 percent who oppose such legislation.
- By a margin of nearly 3 to 1 (52 percent to 19 percent), voters support efforts to sequester carbon dioxide using underground pipelines.
Notably, Cooper said, support for ethanol and renewable fuels policy crossed party lines and includes majorities of both Republican and Democrat respondents.
The poll also found strong doubts about some policy proposals regarding electric vehicles, particularly those that eliminate consumer choice and options when it comes to vehicle purchases. Key results:
- Half (50 percent) of respondents said they were not interested in purchasing or leasing an electric vehicle in the next three years, while 42 percent expressed interest. Another 8 percent had no opinion.
- Nearly four out of five (77 percent) of voters say it is important for automakers to disclose (to potential buyers) the emissions impacts of the electricity used to power electric vehicles. Only 12 percent said transparent emissions information isn’t important.
- Two-thirds (66 percent) oppose policies that ban the sale of new cars with traditional liquid-fueled engines, with only 23 percent supporting such policies.
- Seven out of 10 respondents (69 percent) oppose EV mandates, with 54 percent expressing “strong” opposition.
- Meanwhile, 58 percent support federal funding for charging infrastructure and tax credits for electric vehicles.
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Jan 4, 2023
The White House Office of Management and Budget on Jan. 4 published its 2022 Fall Unified Agenda and Regulatory Plan, confirming the expected timeline on federal rulemakings related to the Renewable Fuel Standard, E15 sales and the Biopreferred program.
According to the agenda, the U.S. EPA is still expected to finalize its RFS “set” rule by June 2023, as required as part of a consent decree filed with the U.S. District Court for the District of Columbia. The proposed rule, released on Dec. 1, 2022, aims to set renewable volume obligations (RVOs) for 2023, 2024 and 2025. It also addresses the generation of electric renewable identification numbers (e-RINs) from eligible sources of biomass-based electricity. A comment period on the rulemaking is open through Feb. 10.
The EPA is also expected to finalize a rulemaking that would allow year-round sales of E15 in several Midwestern states in March 2023, according to the agenda. The agency in early December delivered a proposed rule to the OMB related to a petition filed by several Midwest governors seeking a solution to year-round E15 sales in their states. A summary published by the OMB explains that the proposed rule “implements a provision in the Clean Air Act which provides that a governor of a state may request that the 1-psi volatility waiver provided in the statute for gasoline-ethanol blends be removed in the state.” The agency said it has received such a request from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.
According to the agenda, the USDA is also working to complete a rulemaking of interest to the bioenergy and biorefining sector. The agency is expected to release a notice of proposed rulemaking in February related to its Biobased Markets Program (Biopreferred). The action will add 2018 Farm Bill provisions to the program, specifically proposing to codify program guidance into the regulations. The rulemaking is expected to reduce burden on both the applicants and the agency by reducing requirements, clarifying requirements, streamlining the application and certification process, and increasing efficiencies in program delivery.
Additional information on the Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions is available on the OMB website.
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Jan 3, 2023
The government of Brazil on Dec. 23 announced it will extend its suspension of the import tariff on ethanol through at least the end of January. The Renewable Fuels Association is calling the extension “a positive first step toward a permanent resolution.”
Brazil in March 2022 announced that it would waive its import tariff on ethanol through the end of 2022 in an effort to alleviate inflationary pressures resulting from the pandemic, which were further aggravated by Russia’s invasion of Ukraine. That tariff was previously set at 18 percent.
“We are pleased that the Brazilian government has extended the suspension of its import tariff on ethanol,” said Geoff Cooper, president and CEO of the RFA. “This is a positive first step toward a permanent resolution and it sends a favorable signal to the marketplace. As we look ahead to 2023, we stand ready to work with incoming President Lula da Silva and his administration to restore free and fair ethanol trade between our nations. As the world’s leaders in the production and use of low-carbon ethanol, we must set an example of free trade and open markets for other nations to follow.”
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Dec 22, 2022
The Renewable Fuels Association’s annual review of vehicle owner’s manuals and warranty statements indicates that E15 is explicitly approved by the manufacturer for use in the vast majority of model year 2023 cars and light trucks. Notably, for the first time, Mitsubishi lists E15 as an approved fuel in some of its 2023 vehicles. The U.S. Environmental Protection Agency has approved the use of E15 in all vehicles built in 2001 or later, representing more than 96 percent of the vehicles on the road today, but automakers only began listing E15 as a recommended fuel in 2012.
According to the RFA analysis of model year 2023 vehicle owner’s manuals and warranty statements and current market share data, more than 94 percent of new light-duty gasoline vehicles are explicitly approved by the manufacturer to use E15. Only Mercedes-Benz, Mazda, and Volvo do not list E15 as a recommended fuel in their owner’s manuals, even though E15 is legally approved by EPA for use in all vehicles built since 2001. Mitsubishi lists E15 as an approved fuel for the 2023 Outlander, but the fuel does not appear in owner’s manuals for other models.
Notably, BMW and Mini continue to approve the use of gasoline containing up to 25 percent ethanol in their vehicles. New for 2023, Toyota’s GR Supra—co-developed with BMW—also follows suit by allowing E25.
When it comes to the E85 Flex Fuel blend, however, the story remains vastly different. Far fewer models are reported available as flex-fuel vehicles, or FFVs, that run on fuel blends containing up to 85 percent fuel ethanol. As was the case in 2022, only Ford and General Motors now offer FFVs in the United States, most of which are for fleet purchases only. For model year 2023, the only FFVs available to consumers are select Ford Explorer, F-150 and Transit models. As recently as model year 2015, more than 80 different FFV models from eight manufacturers were available to consumers.
“We’re happy to see automakers continuing to embrace lower-cost and lower-carbon E15,” said RFA President and CEO Geoff Cooper. “As we saw throughout 2022, higher blends of ethanol provide great value to drivers and are better for the environment, the climate and public health. Today’s ethanol reduces greenhouse gas emissions by half compared to gasoline, and we’re well on the way to net-zero ethanol. As great as the support is for E15, American consumers need more options at the gas pump, and we will continue to encourage automakers and the Biden administration to recommit to FFV production to help us reach carbon neutrality by mid-century, and to provide drivers a practical and affordable high-performing fuel option.”
At present, more than 5,600 gas stations sell E85 and other flex fuels in the United States, and over 2,800 offer E15. Click here for locations and a price tracker, and click here for more information on ethanol blends.
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Dec 21, 2022
In Panama City, Panama, U.S. Grains Council staff in Latin America and the Caribbean (LTA) participated in the VII Energy Week organized by the Latin American Energy Organization (OLADE), the Energy Secretariat of Panama and the Inter-American Development Bank (IDB), in collaboration with EnergyNet.
Delegates from more than 21 countries attended the event, the most relevant in the region, to discuss energy-related topics, including governments, companies, academia and international agencies. Issues highlighted in this year’s Energy Week edition included innovation in the energy sector; access and efficiency; sustainable energy development; renewable energies; regional security; and integration mechanisms.
Juan Sebastian Diaz, USGC Latin America regional ethanol consultant, participated in the “Sustainable Mobility” session to discuss opportunities and challenges facing biofuels and electromobility in the region. Diaz was joined on the panel by representatives from the International Renewable Energy Agency (IRENA), the IDB, U.N. Environment Programme, the World Bank (WB) and the Inter-American Institute for Cooperation on Agriculture (IICA).
“During the panel, the Council was able to demonstrate that biofuels, and particularly ethanol, are still valid within the region as one of the most efficient and easily accessible mechanisms to meet the international call to decarbonize the transportation system in their respective countries,” Diaz said. “We highlighted the momentum that Central America is having by embracing biofuels programs in the near future and encouraged the audience to expand ethanol usage based on their current capabilities.”
According to OLADE, the transportation sector in Latin America and the Caribbean is responsible for nearly 22 percent of the emissions of short-lived climate pollutants and represents 15 percent of total greenhouse gas (GHG) emissions. If the trend scenario continues, it is estimated that GHG emissions will increase by 50 percent by 2050. Transportation is one of the primary sources of air pollution in cities, strongly impacting public health.
In this sense, biofuels, especially ethanol produced from corn, emerge as a sustainable option to provide efficient fuel and help reduce carbon dioxide (C02) emissions in the transportation sector. The Council has a regional incidence strategy in the area to promote public policies favorable to biofuels, as well as to achieve higher blends of ethanol mixed with gasoline and reduce trade barriers to the entry of U.S. ethanol.
“We believe the Council’s participation in this important event helps create awareness of government officials in the region about the role of biofuels in the energy transition,” Diaz said. “During the panel, attendees agreed that ethanol is a simple, practical and economical way to decarbonize the region’s transportation system.”
The Council engages governments and industries across the Latin America and Caribbean region to develop the ethanol market and promote sales of U.S. ethanol. USGC ethanol promotion efforts focus on at least four areas, including demonstrating the environmental and human health benefits of ethanol; working with local leaders to develop biofuels policies with a role for trade; addressing trade barriers and logistical constraints to imports; and showing ethanol’s value as a source of octane.
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Dec 20, 2022
The U.S. EPA on Dec. 20 released a final analysis on the price of renewable identification numbers (RINs) and small refineries in response to a recommendation included in a recent U.S. Government Accountability Office report. The final analysis confirms the EPA's conclusion that small refineries recover their Renewable Fuel Standard compliance costs in the price of gasoline and diesel that they sell.
The GAO in November released a report on the RFS small refinery exemption (SRE) program, claiming that its analysis determined that the EPA does not have assurance that its decisions about SREs are based on valid information. The report also claims that the EPA and DOE do not have policies and procedures specifying how they are to consult about and make exemption decisions. Representatives of the ethanol industry slammed the report, calling it shoddy and obsolete.
Within the report, the GAO makes seven specific recommendations related to the SRE program. One of those recommendations calls on the EPA to reassess its conclusion that all small refineries recover their compliance costs in the price of the gasoline and diesel they sell, including by fully examining and documenting RIN market performance and RIN pass-through in all relevant fuel markets.
The EPA on Dec. 20 released its response to that recommendation. EPA said it has completed a final analysis that “resolves this recommendation and confirms EPA’s preliminary results from its initial analysis and explanation provided to GAO, which is included in Appendix IV of the GAO report.”
As part of its final analysis, the EPA analyzed more than 2.2 million RIN transactions, accounting for 140 billion RINs, for companies that traded separated RINs for conventional renewable fuel (D6) and biomass-based diesel (D4). The analysis covered approximately 43 percent more RIN transactions than were analyzed in a recent GAO report. The transactions include RIN price data for 24 small refineries that purchased and/or sold RINs as separate facilities. All 24 of those small refineries have submitted SRE petitions to the agency for at least one RFS compliance year.
According to the EPA, its analysis found that on average, these 24 small refineries paid 1.1 percent, or 1.2 cents, more per RIN when buying separated RINs when compared to the average daily price and 0.5 percent, or 0.6 cents, more per RIN than the largest 20 refiners.
A full copy of the final report is available on the EPA website.
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Dec 15, 2022
CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.”
CoBank predicts that the ethanol industry will benefit from greater usage of E15, growing demand for corn oil, and strong pricing of carbon dioxide. According to the report, carbon dioxide, a coproduct of ethanol production, is experiencing a demand surge from both industrial users and carbon sequestration projects.
The outlook for other types of biofuel is strong as well. CoBank predicts the momentum behind renewable diesel will continue to grow as new soy crush processing and oil refinement facilities come online, supported by the Inflation Reduction Act of 2022.
A full copy of the report can be downloaded from the CoBank website.
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Dec 8, 2022
The U.S. EPA on Dec. 5 delivered a proposed rule to the White House Office of and Management and Budget related to a petition filed by several Midwest governors seeking a solution to year-round E15 sales in their states. OMB review marks a final step before a proposed rule is released for public comment.
A summary published by the OMB explains that the proposed rule “implements a provision in the Clean Air Act which provides that a governor of a state may request that the 1-psi volatility waiver provided in the statute for gasoline-ethanol blends be removed in the state.” The agency said it has received such a request from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.
Several Midwest governors in April 2022 sent a letter to EPA Administrator Michael Regan announcing they would seek such a waiver, which would allow E15 to be sold year-round in their states.
Additional information is available on the OMB website.
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Dec 7, 2022
U.S. ethanol production was up 6 percent the week ending Dec. 2, according to data released by the U.S. Energy Information Administration on Dec. 7. Weekly ending stocks of fuel ethanol were up 1 percent.
Ethanol production averaged 1.077 million barrels per day the week ending Dec. 2, up 59,000 barrels per day when compared to the 1.018 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 Dec. 2 was down 13,000 barrels per day.
Weekly ending stocks of fuel ethanol expanded to 23.257 million barrels the week ending Dec. 2, up 323,000 barrels when compared to the 22.934 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 2 were up 2.793 million barrels.
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Dec 8, 2022
WASHINGTON, DC –Yesterday, U.S. Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) introduced the Consumer and Fuel Retailer Choice Act of 2022, bipartisan, bicameral legislation that would enable the year-round, nationwide sale of ethanol blends higher than 10%, helping to lower fuel prices and improve stability and certainty in the U.S. fuel market. This bill is supported by the largest unified group of farming, biofuels and oil companies to date.
Representative Craig’s bill is the House companion to the Senate bill introduced by Senators Amy Klobuchar (D-MN) and Deb Fischer (R-NE) in late November.
“E15 creates opportunities for our family farmers, supports economic growth in rural America and lowers prices at the pump for Minnesotans – and ensuring this cheaper, biofuel alternative is available year-round is a win-win for all those involved in its production,”said Representative Craig.“I’m proud to have worked with Representative Smith on this bill to support our biofuel producers and farmers – and look forward to getting over the finish line.”
“Year-round E15 is a win-win as it boosts American energy independence and ensures greater affordability and opportunity for consumers as well as producers,”said Representative Smith. “E15 benefits the agriculture, energy, and transportation sectors. There’s no reason not to extend to E15 the same regulatory relief currently provided to E10, and I thank Senator Fischer for her leadership on this in the Senate and Rep. Craig for her partnership on our bill in the House.”
TheConsumer and Fuel Retailer Choice Act of 2022 would extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent to allow for the year-round, nationwide sale of E15. In addition, it would ensure consistency across the fuel markets and limit disruptions across the national fuel supply chain by prohibiting the removal of the 1-psi waiver for E10 ethanol.
In the House, theConsumer and Fuel Retailer Actis cosponsored by Representatives Cindy Axne (D-IA), Dusty Johnson (R-SD), Dan Kildee (D-MI), Randy Feenstra (R-IA), Mike Flood (R-NE), James R. Baird (R-IN), Tracey Mann (KS-1), Jim Banks (IN-03), Mary Miller-Meeks (R-IA), Jake LaTurner (R-KS), Michelle Fischbach (MN-07), Ashley Hinson (IA-01),Vicky Hartzler (MO-4), Sam Graves (R-MO), Ken Buck (R-CO), Cheri Bustos (D-IL), Brad Finstad (R-MN), Ron Estes (R-KS), Tim Ryan (D-OH), James Comer (R-KY) and Jason Smith (R-MO).
The Senate companion to the bill is sponsored by the U.S. Senators Amy Klobuchar (D-IL), Deb Fischer (R-NE), Chuck Grassley (R-IA), Tina Smith (D-MN), John Thune (R-SD), Sherrod Brown (D-OH), Joni Ernst (R-IA), Roger Marshall (R-KS), Dick Durbin (D-IL), Jerry Moran (R-KS), Tammy Baldwin (D-WI), Kevin Cramer (R-ND), Ben Sasse (R-ND) and Mike Rounds (R-SD).
In Congress, Representative Craig has championed the issue of year-round availability of E15. This past year, she pushed the Administration to extend the availability of E15 during the summer to provide American consumers with access to a cheaper biofuel alternative at their local gas station. Additionally, she is also the lead sponsor of the House-passed Year-Round Fuel Choice Act, which would permanently allow the summer sales of E15.
Read the original press release here.
Dec 7, 2022
A bill introduced in the Senate to allow nationwide year-round sales of the lower-cost E15 ethanol blend has received the support of more than 250 organizations and companies, including fuel retailers, petroleum refiners, farm groups, ethanol producers, and many others. In a letter to congressional leadership today, the entities collaborated to urge the speedy adoption of S. 5145, the Consumer and Fuel Retailer Choice Act of 2022, before this session ends.
“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” the letter states. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape. In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 continue to resurface every summer.”
“As demonstrated by today’s letter, an increasingly broad and diverse coalition of companies and organizations has rallied together to support the year-round availability of lower-cost, lower-carbon E15,” said Renewable Fuels Association President and CEO Geoff Cooper. “We all agree that the marketplace desperately needs the certainty and stability that this legislation would provide. And by ensuring consumers nationwide have uninterrupted access to E15, this bill would help lower pump prices, enhance our nation’s energy security, and reduce emissions of both greenhouse gases and the pollutants that contribute to air pollution and smog.”
Last month, RFA and the American Petroleum Institute led a broad coalition of energy and agriculture organizations that called on Congress in a similar letter to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations. RFA estimates that nearly 97 percent of registered vehicles on the road today are legally approved by the U.S. Environmental Protection Agency to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15.
Recent analyses by RFA and the U.S. Energy Information Administration confirm that expanded use of E15 provided meaningful consumer savings at the pump last summer, as war in Ukraine pushed crude oil and gasoline prices to historic highs. Further, a recent CSP survey found that one out of every five fuel retailers plan to add the E15 blend at their locations in the coming year; over 2,800 fuel stations currently carry the blend.
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Dec 6, 2022
U.S. biofuels operable production capacity increased slightly in September, according to data released by the U.S. Energy Information Administration on Nov. 30. Total feedstock consumption was down when compared to both the previous month and September 2021.
Total biofuels production capacity reached 21.383 billion gallons in September, up 13 MMgy when compared to the 21.37 billion gallons of capacity reported for the previous month, and up 500 MMgy when compared to the 20.883 billion gallons of capacity reported for September 2021.
Ethanol capacity was at 17.165 billion gallons in September, up 13 MMgy when compared to the previous month, but down 243 MMgy when compared to the same month of last year.
Biodiesel capacity was at 2.084 billion gallons in September, flat with the previous month, but down 377 MMgy when compared to September 2021.
Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates was at 2.134 billion gallons in September, unchanged from the previous month but up 1.12 billion gallons when compared to September of last year.
Total biofuels feedstock consumption fell to 23.958 billion pounds in September, down from both 26.682 billion pounds the previous month, and 24.375 billion pounds in September 2021.
Biofuel producers consumed 21.473 billion pounds of corn in September, down from 24.12 billion pounds in August and 22.799 billion pounds in September 2021. Grain sorghum consumption was at 408 million pounds, down from 446 million pounds the previous month, but up when compared to the 27 million pounds consumed in September of last year.
Approximately 934 million pounds of soybean oil went to biofuels production in September, down from 925 million pounds in August, but up when compared to the 779 million pounds consumed by biofuel producers in September 2021. Biofuel producers also consumed 302 million pounds of corn oil in September, up from 298 million pounds the previous month and 167 million pounds in September of last year. Canola oil consumption was at 131 million pounds, down slightly from 132 million pounds in August, but up from 106 million pounds in September 2021.
Biofuel producers also consumed 438 million pounds of yellow grease, 131 million pounds of beef tallow, 62 million pounds of white grease, and 13 pounds of poultry fat in September. Consumption was at 384 million pounds, 163 million pounds, 64 million pounds and 12 million pounds, respectively, in August, and at 219 million pounds, 134 million pounds, 54 million pounds and 18 million pounds, respectively, in September 2021.
The EIA withheld the volume of other waste oils, fats and greases that went to biofuel production in September to avoid disclosure of individual company data, but reported that 62 million pounds of these feedstocks were consumed in August, along with 5 million pounds in September of last year. An additional 66 million pounds of feedstock classified as “other” was used to produce biofuels in September, compared to 76 million pounds the previous month and 63 million pounds in September 2021.
Additional data is available on the EIA website.
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Dec 5, 2022
To reengage with the poultry sector in Egypt, U.S. Grains Council staff in the Middle East, Africa and Europe region traveled to the country in early November to conduct a general trade servicing mission.
While the Council already conducts programs in Egypt dealing with starch and storage, the organization sees the poultry sector as a place for immense growth, which could prove to be a new outlet for U.S. DDGS exporters.
Egypt has been a growing market for distiller’s dried grains with solubles (DDGS) in the past, but sales have since leveled off. The Council sees the broiler industry in Egypt as a space to introduce the commodity, as the country’s broiler sector does not currently use DDGS in its feed.
“The broiler sector is the largest feed sector in Egypt, representing roughly three million metric tons (MMT) of feed in 2021,” said Reece Cannady, USGC assistant regional director for the Middle East and Europe. “At a 10 percent inclusion rate, this is a potential market size of 300,000 MT of DDGS, which, at today’s prices, equates to roughly $100 million.”
While in Egypt, Cannady and Jad Wakileh, USGC consultant in the region, met with many stakeholders across the marketplace, including poultry production companies, grain importers and traders, in addition to visiting wet markets and grocery stores for further education on local supply chains.
“Our engagement in Egypt has been very intense and long-standing,” Cannady said. “The Council has been actively engaged in helping fix the misperception of U.S. corn quality in Egypt, and that hard work is paying off; now it’s time to move the needle for DDGS exports to the country.”
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Nov 30, 2022
NEW YORK, Nov 29 (Reuters) - U.S. senators from Nebraska and Minnesota introduced legislation on Tuesday that would expand nationwide sales of E15, a gasoline with a higher blend of ethanol, after gaining support for the bill from an oil industry trade group for the first time, Senator Deb Fischer from Nebraska told Reuters.
The legislation, introduced by Fischer and Senator Amy Klobuchar from Minnesota and supported by the American Petroleum Institute (API), would mark a huge win for the ethanol industry and corn farmers who have repeatedly tried to expand sales of E15 but have faced hurdles.
While it is unknown if the bill has the support it needs to pass both the House and Senate to become law, the backing of the oil industry has lifted a notable political obstacle.
U.S. Environmental Protection Agency (EPA) anti-smog regulations currently restrict summertime sales of E15, even though research has shown the higher percentage blend may not increase smog relative to the 10% blend called E10 that is now sold year-round.
"We have good support," Fischer told Reuters. "When you look at the impact it'll have, especially on the central part of the United States, the Midwest and part of the south, I think that's extremely important."
Fischer and Klobuchar's legislation, if passed, would nullify the governors' request and avoid patchwork E15 expansion, Fischer said.
"By allowing for the year-round sale of E15 nationwide while also preserving access to lower ethanol gasoline blends, this bipartisan legislation strengthens the reliability of the fuel supply chain and ensures American consumers have access to the fuels they depend on every day," said Will Hupman, API's vice president of downstream policy.
The legislation also has the support of Senator Kevin Cramer from North Dakota, a co-sponsor of the bill. Cramer's support is significant, as North Dakota is one of the top oil-producing states, Fischer said.
Organizations including the API, the Renewable Fuels Association (RFA) and the National Farmers Union wrote to congressional leaders this month to urge them to adopt legislation to expand nationwide E15 sales.
"We thank Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which brings much-needed consistency and stability to the marketplace," said RFA President Geoff Cooper, after Tuesday's legislation announcement.
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Nov 23, 2022
U.S. fuel ethanol production expanded by 3 percent the week ending Nov. 18, according to data released by the U.S. Energy Information Administration on Nov. 23. Ethanol stocks were up more than 7 percent.
Fuel ethanol production averaged 1.041 million barrels per day the week ending Nov. 18, up 30,0000 barrels per day when compared to the 1.011 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending Nov. 18 was down 38,000 barrels per day.
Weekly ending stocks of fuel ethanol expanded to 22.829 million barrels per day the week ending Nov. 18, up 1.531 million barrels when compared to the 21.298 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Nov. 18 were up 2.665 million barrels.
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