In the News

Ethanol Producer Magazine

Jul 17, 2023

Vietnam has lowered Most-Favored-Nation tariff rates on ethanol from 15 percent to 10 percent, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. 

The Government of Vietnam issued a decree on May 31 announcing the change. The new rate became effective on July 15, according to the report. 

MFN tariff rates will to all of Vietnam’s trading partners with whom the country has no preferential agreements in place. The report indicates that MNF tariff rates apply to the U.S. 

According to data published by the USDA FAS, the U.S. exported approximately 2.38 million gallons to Vietnam last year, compared to 6,325 gallons in 2021 and 2.72 million gallons in 2020. 

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Renewable Fuels Association

Jul 6, 2023

May U.S. ethanol exports eased 10% to 113.2 million gallons (mg), chiefly reflecting lower undenatured non-beverage, non-fuel ethanol shipments (including 12.6 mg lower exports to India). Canada was our largest destination for the 26th consecutive month and accounted for 45% of global ethanol sales. The 51.0 mg of ethanol shipped north of our border (a 9% increase over April and the second largest on record) included 73% of total U.S. denatured fuel exports for the month. Other substantial markets included the European Union (22.6 mg, +37%)—primarily shipped to the Netherlands, marking the country’s second-largest import volumes on record—the United Kingdom (9.7 mg, -7%), South Korea (9.6 mg, -10%), Peru (6.2 mg, +113%), and Colombia (6.0 mg, +116%). Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 593.0 mg, lagging 18% behind last year at this time.

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

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, sprang to a 9-month high of 958,385 metric tons (mt) in May. This was 23% more than April but 1% behind year-ago volumes. The bulk of DDGS shipments landed in just six countries, yet several smaller markets logged near-record volumes (e.g., Tunisia imported 20,008 mt and Guatemala bought 18,016 mt). Mexico captured the largest market share (17%) for the 11th consecutive month (up 4% to 163,731 mt), and Turkey’s imports were up sevenfold to a 22-month high of 146,559 mt. South Korea (103,925 mt, -7%), Indonesia (89,005 mt, +21%), Vietnam (83,905 mt, +29%), and Canada (59,523, +65%) rounded out our largest global customers for the month. Year-to-date DDGS exports, totaling 4.17 million mt, lag 11% behind last year at this time.

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National Corn Growers Association

Jun 29, 2023

Congress can ensure more consumer choice in fuels and vehicles by taking greater advantage of low-cost, low-emissions biofuels like ethanol, a leader of the National Corn Growers Association told members of Congress on June 22. 

“As producers of the sustainable, primary feedstock for low carbon ethanol, corn farmers stand behind agriculture’s contribution to low-cost, cleaner, domestic energy,” NCGA CEO Neil Caskey  said during testimony  before the Subcommittee on Environment, Manufacturing, and Critical Materials of the House Energy and Commerce Committee. “Their production improvements will help achieve biofuels with net-zero emissions and higher ethanol blends cost less.”

In his testimony, Caskey discussed several bills that that would leverage the benefits of biofuels to ensure a level playing field in transportation, including:

  • The Fuels Parity Act, which ensures EPA uses the most accurate lifecycle emissions assessment for biofuels: the Department of Energy Argonne National Lab’s GREET model. The legislation recognizes progress made under the Renewable Fuel Standard, allowing all fuels, including corn ethanol, that meet the 50 percent lower GHG standard for an advanced biofuel to qualify as an advanced biofuel.
  • The Consumer and Fuel Retailer Choice Act, which would permanently remove outdated and unnecessary barriers to full market access to 15 percent ethanol-blended fuel, a lower-cost and lower emissions choice.
  • Next Generation Fuels Act, which considers fuels and vehicles as a system, would improve our nation’s liquid fuel supply and transition new combustion vehicles to use advanced engines that take advantage of better fuels, such as higher blends of ethanol. This transition to updated fuels and vehicles would cut fuel costs, reduce GHG and other transportation emissions and increase fuel efficiency.

Caskey said NCGA supports policies to further reduce emissions from vehicles but is opposed to EPA’s proposed approach for emission standards.

“EPA’s proposed rule envisions only one solution to meet new standards, electric vehicles, without accounting for their full lifecycle emissions,” he said. “Rather than endorse a single technology, we are urging EPA to focus on outcomes and open pathways for all low-carbon fuels and technologies, as well as advance a needed rulemaking to improve fuels.”

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USDA Foreign Agricultural Service

Jun 23, 2023

The United States transitioned from a net importer of ethanol in 2009 to the world’s largest supplier, exporting a record 1.7 billion gallons in 2018. While the use of ethanol as a fuel for blending with gasoline accounted for three-fourths of the export expansion, ethanol for other nonfuel industrial applications has seen slower but steady growth. With expanding uses for industrial ethanol, global demand will grow, including use as disinfectants, solvents, carriers in foods and cosmetics, commercial deicers, pharmaceuticals, and organic chemical manufacturing. The recent increased export demand for U.S. industrial ethanol is mainly tied to two factors: 1) demand for disinfectants and, more importantly, 2) growing industrial use from the manufacturing sectors of the Republic of Korea (South Korea), India, Mexico, Nigeria, and Europe.

Continued global demand for disinfectants, the emergence of biomanufacturing, and rising demand for “lower carbon” consumer products are expected to expand opportunities for industrial ethanol. Ethanol’s continually improving carbon intensity (CI) score, consumer demand for environmentally responsible products, and countries’ interest in decreasing their greenhouse gas emissions will continue to create market opportunities for U.S. ethanol exports. Lower CI scoring now means that U.S. ethanol is eligible to compete for 100 percent of Japan’s ethyl tertiary-butyl ether demand. Additionally, new investments in U.S. plants manufacturing sustainable aviation fuel derived from ethanol are underway, creating another potential source of future demand. These developments will support fuel-ethanol exports, which have retreated since 2018 due to setbacks with Brazil, China, and the pandemic.

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Ethanol Producer Magazine

Jun 22, 2023

U.S. ethanol production was up more than 3 percent the week ending June 16, reaching the highest level since December 2022, according to data released by the U.S. Energy Information Administration on June 22. Ethanol stocks were also up 3 percent, with exports up 14 percent.

Fuel ethanol production averaged 1.052 million barrels per day the week ending June 16, up 34,000 barrels per day when compared to the 1.018 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending June 16 was down 3,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 22.804 million barrels, up 578,000 barrels when compared to the 22.226 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending June 16 were down 672,000 barrels.

Fuel ethanol exports averaged 87,000 barrels per day the week ending June 16, up 11,000 barrels per day when compared to the 76,000 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 earlier this month. According to EIA data, no fuel ethanol imports were reported for the week ending June 16.

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Ethanol Producer Magazine

Jun 19, 2023

A group of 16 senators on June 16 sent a letter to U.S. Treasury Secretary Janet Yellen urging the agency to adopt the U.S. Department of Energy’s GREET model as the secondary methodology for calculating tax credits for sustainable aviation fuel (SAF). According to the senators, adopting GREET will dramatically enhance the effectiveness of SAF incentives to accelerate the aviation industry’s decarbonization.

“Failure to provide businesses with the certainty and reliability of a science-based, United States government-developed model to determine eligibility for IRA tax credits could have dire consequences,” the senators wrote. “Prohibiting the aviation industry from decarbonizing with the most readily available SAF options will not only prevent American farmers from contributing to a clean energy economy, but it will drastically delay adoption of promising low emission energy sources and force the aviation industry to miss an opportunity to eliminate millions of tons of carbon emissions in the coming years.”

Within the letter, the senators explain that the GREET model would enable SAF stakeholders to adapt to new developments and technical advances, making it “the only model that can lead to every participant in the SAF lifecycle having options to appropriately participate in carbon reducing processes."

The letter outlines several specific reasons why Treasury should allow SAF producers to use GREET in determining the fuel’s lifecycle GHG emissions. As required by the Inflation Reduction Act, GREET is a “similar methodology” to the most recent CORSIA model, which has been adopted by the International Civic Aviation Organization. GREET also satisfies the criteria for lifecycle analysis under the Renewable Fuel Standard regulations.

In addition, the senators stress that GREET is used to calculate the lifecycle analysis related to other IRA tax credits, including those for hydrogen and clean fuels. “Notably, these provisions requiring the use of GREET for other transportation fuels and hydrogen reference the same definition of ‘lifecycle greenhouse gas emissions’ under the Clean Air Act as does IRC Section 40B,” the senators wrote. “Moreover, because some facilities will produce both aviation and non-aviation fuels at the same facility, to require them to utilize different models for aviation and nonaviation fuels will unnecessarily complicate the ability of these taxpayers to calculate credit values for these fuels.”

The senators also explain that using GREET for lifecycle analysis creates a system to reward farmers for climate-smart agricultural practices and introduces a market-driven approach to sustainability. Finally, they note that GREET is the most up to date, accurate model for U.S. domestic practices. “ICAO largely relies on data published between 2007-2012 and utilizes an averaging approach,” the senators wrote. “In fact, ICAO uses old GREET data but relies on out of date, static science and methodologies that unjustifiably penalize U.S. agriculture. In the last decade, the carbon intensity of biofuels has fallen by 20 percent or more, making the case that for a scientific model to be accurate it must be continuously updated with relevant data and methodologies. GREET has been updated at least five times in the last 9 years and relies on the best available science to assess direct emissions. GREET includes actual field testing and validation techniques and includes climate-smart agricultural practices and scientific innovations.”

The senators caution Treasury that failure to implement GREET will prohibit the majority of the current SAF market from benefiting from the IRA’s SAF tax credit while preventing industry from making further investments in SAF production and hindering carbon reduction.

The letter is signed by Sens. Tammy Duckworth, D-Ill.; Richard Durbin, D-Ill.; Deb Fischer, R-Neb.; Joni Ernst, R-Iowa,; Amy Klobuchar, D-Minn.; Chuck Grassley, R-Iowa; Patty Murray, D-Wash.; Sherrod Brown, D-Ohio; Debbie Stabenow, D-Mich.; Tina Smith, D-Minn.; Roger Marshall, R-Kan.; Gary Peters, D-Mich.; John Thune, R-S.D.; Tammy Baldwin, D-Wisc.; Michael Rounds, R-S.D.; and Pete Ricketts, R-Neb.

Duckworth earlier this month  introduced the Sustainable Aviation Fuels Accuracy Act of 2023,  a bipartisan bill that aims to identify the standards required to meet the definition of SAF at the Federal Aviation Administration. The bill would, in part, require the federal government to adopt the most up-to-date lifecycle emissions models, including GREET or successor life-cycle analysis models to GREET. Fischer, Ernst, Klobuchar and Grassley have signed on to cosponsor the bill.

Growth Energy has spoken out in support of the senators’ letter to Treasury.

“It would be climate malpractice to anchor our SAF ambitions to outdated models that disregard U.S. innovations in biofuel production and climate-smart agriculture,” said Emily Skor, CEO of Growth Energy. “With current technologies, farm-based feedstocks are the only sources of clean, renewable energy available in large enough volumes to deliver on our decarbonization goals. Fortunately, researchers at the U.S. Department of Energy (DoE) have developed the gold standard for lifecycle modeling, informed by the latest hard data on everything from indirect land use change to fertilizer inputs. Only with the  best available science  guiding incentives can we  unlock the innovations and investments needed to meet this administration’s  SAF Grand Challenge.  We applaud Senator Duckworth and our other Senate champions for working to ensure U.S. SAF production isn’t grounded before it can ever take off.”

A full copy of the letter is available on the Growth Energy  website.

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Whitefox Technologies

Jun 12, 2023

Whitefox Technologies  is pleased to announce that Redfield Energy LLC,has decided to implement a Whitefox ICE® Plus  membrane dehydration system at its ethanol plant located in Redfield, SD.This project is Whitefox’s first ICE Plus project in the U.S. It represents a major milestone towards delivering Net Zero benefits, whilst also debottlenecking the plant’s ability to deliver additional ethanol capacity. The project is estimated to be operational in Q3 2024. 

The Whitefox ICE Plus system is designed to work with Redfield’s existing dehydration technology and will provide an additional12%capacity taking the plantto70 MMGPY from Day 1, sized toget the Plant to90 MMGPY over time. The solution is,coupled with the ability to integrate and conserve a significant amount of energy, up to 5,000 BTU per gallon of ethanol produced. The solution also reduces the demand for cooling water and provides the operational benefits associated with a Whitefox ICE solution in terms of reducing recycle streams and dehydrating ethanol in a continuous 24/7 process. The Whitefox ICE Plus solution uses the same membrane technology associated with Whitefox ICE, which is currently being deployed in 11 US Ethanol plants. It’s a solution which not only helps ethanol reach its Net Zero goals, but also makes plants more profitable and sustainable.

Eric Baukol, CEO of Redfield Energystates “It’s an exciting time to be in the industry. If you had 10 CEOs in a room, they might map out that many different versions of the future for their biorefineries as far as which markets and products they intend to compete in.  All of these versions of the future start with efficiencies and a drive toward making our Net Zero pledge a reality, and we feel we’re making a great step forward in that regard with this Whitefox project.

Virginia Andrade, Whitefox Engineering Managercommented “Whitefox ICE Plus was developed as we listened to ethanol producers who were looking for enhanced energy savings as they considered the journey towards NetZero. The solution is ideal where the plant’s existing molecular sieves still have lifetime.ICE Plus is able to de-load the molecular sieves and provide additional lifetime to this technology, but also act as a steppingstone to finally replace molecular sieves and transition towards a sole membrane solution, Whitefox ICE XL when the time is right”. 

Our process engineers worked closely with the Redfield Energy’s team throughout the initial project phase and together designed a tailored solution that not only fits to the distinctive features of the plant, but allows Redfield Energy to fulfil their business objectives. It has been a real pleasure to work with Eric Baukol, Ryan Siebrecht, Josh Underberg, Angela Turck and Casey Stoner and the team at the Redfield plant.”

ABOUT REDFIELD ENERGY LLC.

At Redfield, our mission is tooperatea profitableand innovative ethanol facility, be the preferred market for locally grown corn, andprovidea quality feed product. In April 2007, Redfield Energy became operational as a dry mill plant. It has the space to process approximately 22 million bushels of corn into ethanol per year. Approximately 230,000 tons of modified wet and drydistillersgrain is produced and sold to the local and west coast markets.

About Whitefox Technologies Limited

Whitefox is a world-leading membrane technology company?headquartered in London, UK with a strong presence in North America through our Membrane & Engineering Centre of Excellence based in Calgary, Alberta, our U.S. Field Services Team in Omaha. Whitefox has over 20 years of experience in delivering cost effective solutions to dehydrate ethanol and other organics components using our?Whitefox ICE®?systems.?Whitefox membrane technology has been successful in dehydrating over?700 million gallons?of ethanol using the currently installed base of 150 MMgy. This installed base is expected to nearly double in 2023.

For more information about Whitefox and our installed U.S. project references, please visit our website:www.whitefox.com

Website: whitefox.com
Twitter: @WhitefoxTech
LinkedIn: Click Here

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Ethanol Producer Magazine

Jun 12, 2023

By Renewable Fuels Association

A survey of U.S. ethanol producers shows the industry to be on track toward its net-zero-carbon goal, a new  white paper  and presentation  indicate, with facilities producing ethanol that is up to 55 percent less carbon intensive than gasoline, on average. The findings will be spotlighted in a presentation by the Renewable Fuels Association this afternoon at the Fuel Ethanol Workshop and Expo in Omaha by RFA Vice President for Strategy and Innovation Tad Hepner.

In July 2021, RFA’s producer members  unanimously committed  to ensuring that, by 2023, ethanol reduces greenhouse gas emissions by at least 70 percent, on average, when compared directly to gasoline, and reach net-zero GHG emissions by 2050 or sooner. A report released at the 2022 National Ethanol Conference identified a  workable pathway  to that goal. Earlier this year, RFA surveyed its member producers and received responses from nearly all RFA member biorefinery facilities, representing a wide variety of sizes, plants with annual production capacities ranging from 35 to 150 million gallons. These responses came from biorefineries operating in 12 different states, both inside and outside the Corn Belt.

“We’re very happy to see the progress being made by RFA’s ethanol producer members toward the net-zero goal,” Hepner said. “Nearly 8 out of 10 facilities are on track to achieve net zero by 2050 or sooner, but there are some barriers that remain to be overcome, such as access to capital, policy and regulatory uncertainty, permitting challenges, and a lack of clear return on investment. As the nation’s leading trade association for renewable fuels, we have our work cut out for us, and we look forward to the challenge and the opportunity for success.”

Among other findings to be presented:

•All the survey facilities reported adopting at least one tracked carbon-reduction technology in recent years, and most have adopted more than one of these technologies and practices.

•These plants have seen a 12 percent reduction in average carbon intensity since 2015/16.

•Nearly two-thirds of the plants have an approved Efficient Producer Pathway under the Renewable Fuel Standard.

•While just over a third of the plants currently capture biogenic C02, more than three-quarters intend to adopt carbon capture and geological sequestration technology.

•A majority of the plants have approved pathways to participate in California’s Low Carbon Fuel Standard program, and many also have approved pathways for similar programs in British Columbia, Oregon and Canada overall.

•Most biorefineries have received a premium value for renewable fuels sold into these low-carbon markets.

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