In the News
Nov 5, 2024
The U.S. exported 148.49 million gallons of ethanol and 1.01 million metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 5. Exports of ethanol were up, while exports of distillers grains were down slightly.
The 148.49 million gallons of ethanol exported in September was up when compared to both the 141.12 million gallons exported the previous month and the 119.77 million gallons exported in September of last year.
The U.S. exported ethanol to nearly three dozen countries in September. Canada was the top destination for U.S. ethanol exports during the month at 64.87 million gallons, followed by the U.K. at 21.14 million gallons and the Netherlands at 16.93 million gallons.
The value of U.S. ethanol exports reached $378.94 million in September, up from both $320.29 million in August and $317.86 million in September 2023.
Total U.S. ethanol exports for the first nine months of this year reached 1.39 billion gallons at value of $3.18 billion, compared to 1.02 billion gallons exported during the same period of last year at a value of $2.82 billion.
The 1.01 million metric tons of distillers grains exported in September was down when compared to both the 1.12 million metric tons exported in August and the 1.03 million metric tons exported in September 2023.
The U.S. exported distillers grains to approximately 36 countries in September. Mexico was the top destination for U.S. distillers grains exports at 178,206 metric tons, followed by South Korea at 137,591 metric tons and Turkey at 119,542 metric tons.
The value of U.S. distillers grains exports fell to $242.15 million in September, down from both $285.57 million the previous month and $286.9 million in September of last year.
Total distillers grains exports for the first three quarters of 2024 reached nearly 9.1 million metric tons at a value of $2.41 billion, compared to 8.05 million metric tons exported during the same period of 2023 at a value of $2.53 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Oct 29, 2024
Whitefox Technologies is pleased to announce the successful installation of the Whitefox ICE® XL membrane dehydration system at Western Plains Energy LLC ethanol plant in Oakley, Kansas. Whitefox is at the forefront of advanced dehydration technology, and this is the first installation in the USA of the new ICE® XL membrane solution.
The solution enables Western Plains to achieve:
• 50% reduction in natural gas and steam;
• 25% increase in production capacity;
• Reduction in operational costs.
Together, this significantly advances Western Plains towards Net Zero by reducing their carbon intensity score by more than a 10% reduction.
Derek Peine, [CEO, Western Plains Energy] commented, “The Whitefox ICE® XL system is a fully integrated solution within our distillation, dehydration and evaporation (DD&E) unit operations. It fully replaces the molecular sieves, with a proprietary membrane system, providing continuous processing and reduced energy and water consumption. It is designed to allow us to reduce our steam usage by up to 50%, which is a big step towards our net zero carbon goal.”
Gillian Harrison, Whitefox’s CEO commented, “The project has embodied the true spirit of collaboration. Western Plains had the vision to be a Net Zero producer in 2019, and together with our engineers, have created ultra-low energy ethanol. This project has been an international endeavour to drive down emissions in renewable fuels and support advancements in rural communities with funding from the USDA and Innovate UK.
I’m proud of what we have achieved and believe it’s a ground-breaking step towards renewable ethanol becoming an essential low-carbon building block for sustainable aviation fuel, green chemicals and beyond.
This project is the first ICE XL project in the US, but Whitefox’s 18th project, with a further 5 in construction. As we continue to expand, this installation represents a milestone in sustainable innovation in ethanol production.
Western Plains and Whitefox are proving that Net Zero are not just words but a commercial and environmental reality.”
ABOUT WESTERN PLAINS ENERGY
Western Plains Energy, LLC. is renewable energy production company in Oakley, Kansas. The company converts regionally grown grain into sustainable, low-carbon products in the form of denatured ethanol and wet distillers’ grains. Western Plains Energy is committed to meeting the growing demand for domestically produced, sustainable renewable energy.
ABOUT WHITEFOX TECHNOLOGIES LIMITED
Whitefox specializes in technology development and innovation based on its proprietary membrane solutions. Whitefox’s solutions use membrane-based cartridge technology which enables clients to produce ethanol and other chemicals to the highest market standards in the most energy and water efficient way. With a small carbon footprint, Whitefox provides solutions for all types of organic solvents, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.
Read the original press release here.
Oct 16, 2024
The Clean Fuel Production tax credit was included in the 2022 Inflation Reduction Act and is meant to incentivize the production of clean fuels, like ethanol and sustainable aviation fuel. Minnesota Biofuels Association Executive Director Brian Werner said the guidelines for these tax incentives are scheduled to be released by the beginning of the year. “It’s really challenging to make investments or get capital financing for these investments at the (ethanol) plants that will reduce the carbon intensity of the finished ethanol if we don’t know what the guidance is and we don’t know what the rules of the road are going to be yet.” To secure the carbon emission reductions from the farm level, the government is now demanding an all-or-nothing bundled approach. “You have to do no-till, cover crops and efficient nitrogen fertilizer, all three of those practices on the same acreage and that’s not workable for a lot of Minnesota farmers.”
Read the original story here.
Oct 14, 2024
Average U.S. ethanol plant earnings are currently stable and expected to continue the same trajectory, according to CoBank’s latest Quarterly Research Report, released Oct. 10. Production levels and exports are expected to remain high.
According to the report, U.S. ethanol plants are currently coming off seasonal high runs with near-record volumes corn going to fuel ethanol production this summer. Many facilities completed maintenance shutdowns in August and are now ready to take advantage of this fall’s bumper corn harvest to keep production climbing, CoBank continued.
Moving into the fourth quarter, CoBank said it expects ethanol margins to benefit from lower corn and natural gas prices. Improved corn oil extraction rates will also boost revenue.
Ethanol exports hit a new record during 2024 marketing year and are continuing to grow. Marketing year 2025 began Sept. 1, and CoBank currently expects ethanol exports to reach a record 2 billion gallons at a value of $4.3 billion. The report, however, cautions that the growth of corn ethanol production in Brazil could create more ethanol export competition in the future. According to CoBank, Brazil’s ethanol production has increased 41%, reaching 15.85 billion gallons per year, with a nameplate capacity of 18 billion gallons per year. The country now has 22 corn ethanol plants, which consume approximately 15% of domestic corn production.
A full copy of the report is available on CoBank’s website.
Read the original story here.
Oct 9, 2024
Northbrook, Illinois – CTE Global, a provider of effective yeast and enzymatic strategies for the production of biofuels introduces Innova Eclipse yeast to its portfolio. Innova Eclipse uses the most advanced technologies to push past fermentation limits, significantly reducing glycerol levels and increasing ethanol yields. This yeast is designed to help biorefineries maximize their production goals by using fast fermentation kinetics, giving the opportunity and flexibility for reduced fermentation time. It has a robust stress tolerance, which allows for consistent and reliable operations.
“We are pleased to offer this revolutionary new yeast to the biofuel industry,” said Alex Shifman, President and CEO of CTE Global. “Innova Eclipse not only enhances bioethanol production but also aligns with CTE Global’s focus to provide the most innovative products and services to our customers. Our team looks forward to assisting biorefineries realize the potential this yeast can bring to their processes and bottom line.”
Innova Eclipse is part of the Innova® family brand of yeasts, known for providing the highest level of performance. It is one of the many yeast and enzyme solutions offered by CTE Global, who is continually innovating and optimizing its product portfolio to meet the needs of the biofuel industry. For more information, visit cte-global.com.
Contact: Kim Trinchet, Marketing Director
This email address is being protected from spambots. You need JavaScript enabled to view it.
Oct 1, 2024
Since James Lenz’s Sept. 29 commentary, “Yes, it’s time to rethink ethanol,” called out the organization I lead by name, I feel compelled to respond. And while we disagree with almost every one of Lenz’s arguments, he got one thing essentially right: The Renewable Fuels Association will always defend ethanol against baseless attacks and misinformation.
As a former adjunct professor and someone involved in “industrial research and development,” Lenz certainly failed to do his homework for this assignment. He says “hundreds” of academic studies have assessed the downside of ethanol, yet he can only point to the same debunked study cited in Karen Tolkkinen’s Sept. 1 column, “The time is ripe to rethink ethanol.” That study, which incidentally was funded by the Washington, D.C.-based National Wildlife Federation, was roundly criticized by numerous academic institutions, including Harvard, Purdue University, the University of Illinois, Tufts University and Department of Energy laboratories.
Lenz goes on to argue that ethanol has displaced Minnesota cropland that previously produced “edible foods such as pulse crops,” then contradicts himself by correctly noting that ethanol has “little to do with food security.” In reality, the number of Minnesota farms growing pulses increased between 2007 (the year Congress adopted the existing Renewable Fuel Standard) and 2022 (the latest year for which USDA data is available). Land dedicated to dry edible beans in Minnesota, by far the largest pulse crop, jumped 45% between 2007 and 2022, while production doubled. The amount of land and number of farms growing berries also increased over this period. Here’s a spreadsheet documenting the changes in the state.
Meanwhile, land dedicated to growing field corn (the type used for ethanol) in Minnesota fell slightly from 2007 to 2022 and the number of farms growing corn dropped by 20%. Nevertheless, Minnesota’s corn production grew 30% over this period due to new technology and greater efficiency — something Lenz apparently seems to think is a bad thing. The data also disprove Lenz’s argument that more corn production means more chemicals and fertilizers. Today’s farmers use less fertilizer and chemicals than they did in the early 1980s, yet produce almost twice as much grain per acre.
Lenz correctly noted that farmers get defensive when ethanol is attacked or, to use his term, “questioned.” But it’s not because they are “caught up in Big Ag’s vicious production monopoly,” as he asserts. It’s because they are sick and tired of the outright lies being told by uninformed elitists about growth in renewable fuels and its positive impact on agriculture.
It’s time for the people to have a conversation about ethanol, Lenz says. On that point, we agree. Ethanol producers and our partners in agriculture always welcome discussions that are grounded facts, data and science. Let’s talk.
Geoff Cooper is president and CEO of the Missouri-based Renewable Fuels Association.
Read the original letter here.
Sep 30, 2024
U.S. ethanol capacity expanded in July, while renewable diesel capacity fell and biodiesel capacity held steady, according to data released by the U.S. Energy Information Administration on Sept. 30. Feedstock consumption was up when compared to both the previous month and July 2023.
Ethanol capacity expanded to 18.307 billion gallons in July, up 104 MMgy when compared to the previous month and up 600 MMgy when compared to July of last year.
Biodiesel capacity was at 2.022 billion gallons per year in July, a level maintained since May. When compared July 2023, biodiesel capacity was down 62 MMgy.
Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, fell to 4.598 billion gallons per year in July, down 299 MMgy when compared to June, but up 892 MMgy when compared to July of last year.
Total U.S. operable biofuels capacity was at 24.927 billion gallons per year in July, down 195 MMgy when compared to the previous month, but up 1.432 billion gallons per year when compared to July 2023.
U.S. biofuel producers consumed approximately 30.698 billion pounds of feedstock in July, up from 28.584 billion pounds the previous month and 28.667 billion pounds in July 2023. The consumption of feedstocks commonly used to produce ethanol in July was up significantly when compared to both the previous month and July of last year. The consumption feedstocks commonly used to produce biobased diesel fuels was also up when compared to both June and July 2023.
Biofuel producers consumed 27.097 billion pounds of corn in July, up from 24.984 billion pounds in June and 25.493 billion pounds in July of last year. Grain sorghum consumption was at 137 million pounds in July, up from 129 million pounds the previous month, but down when compared to the 255 million pounds consumed in July 2023.
Biofuel producers consumed 1.139 billion pounds of soybean oil in July, including 642 million pounds consumed by biodiesel plants and 497 million pounds consumed by renewable diesel facilities. Soybean oil consumption was at 1.267 billion pounds in June, including 578 million pounds consumed at biodiesel plants and 689 million pounds consumed at renewable diesel facilities, and at 1.273 billion pounds in July of last year, including 679 million pounds consumed by biodiesel producers and 594 million pounds consumed at renewable diesel plants.
A total of 546 million pounds of canola oil was used to produce biofuel in July, including 139 million pounds consumed by biodiesel plants and 407 million pounds consumed at renewable diesel facilities. Canola oil consumption was at 386 million pounds in June, with 162 million pounds of that volume going to biodiesel production and 224 million pounds going to renewable diesel production, and at 296 million pounds in July, with biodiesel consumption at 164 million pounds and renewable diesel consumption at 132 million pounds.
U.S. biofuel producers also consumed 349 million pounds of corn oil in July, with 85 million pounds of that volume going to biodiesel production and 264 million pounds used to produce renewable diesel. Corn oil consumption was at 403 million pounds in June, with 80 million pounds consumed by biodiesel plants and 324 million pounds consumed by renewable diesel facilities. Corn oil consumption was at 359 million pounds in July of last year, with 89 million pounds going to biodiesel production and 270 million pounds consumed by renewable diesel facilities.
Biofuel producers consumed 665 million pounds of beef tallow, 657 million pounds of yellow grease, 68 million pounds of white grease, 23 million pounds of poultry fat and 19 million pounds of other waste oil, fats and greases in July. Consumption was at 567 million pounds, 714 million pounds, 57 million pounds, 21 million pounds, and 18 million pounds, respectively, in June, and at 367 million pounds, 481 million pounds, 66 million pounds, 9 million pounds and 13 million pounds, respectively, in July 2023.
The EIA withheld data on the consumption of agricultural and forestry residues, other agricultural and forestry products, other vegetable oils, other recycled feeds and wastes, and other biofuel feedstocks not elsewhere specified or identified to avoid disclosure of individual company data.
Additional data is available on the EIA website.
Read the original story here.
Sep 27, 2024
WASHINGTON, DC – Today, U.S. Representative Angie Craig introduced bipartisan legislation to make year-round access to E15 permanent nationwide – expanding market access for Minnesota farmers and lowering costs for drivers at the gas pump.
The bipartisan Nationwide Consumer and Fuel Retailer Choice Act is the latest step in Rep. Craig’s efforts to increase investment in domestic biofuels production. In Congress, Rep. Craig has worked across the aisle for years to promote homegrown biofuels and stood up to the Biden Administration when they missed the mark on new sustainable aviation fuel guidance earlier this year.
“Homegrown biofuels are tools we have right now to address climate change, strengthen our nation’s energy infrastructure and lower costs for Americans at the gas pump,” said Rep. Craig. “This bill is the kind of commonsense legislation we need more of in Washington and I’m proud to be a part of the bipartisan coalition fighting for year-round E15 in the House.”
Rep. Craig introduced the Nationwide Consumer and Fuel Retailer Choice Act alongside a bipartisan coalition of House Members – U.S. Reps. Adrian Smith (R-NE), Nikki Budzinski (D-IL), Dusty Johnson (R-SD), Sharice Davids (D-KS) and Mariannette Miller Meeks (R-IA).
U.S. Senators Deb Fischer (R-NE) and Tammy Duckworth (D-IL) introduced companion legislation in the Senate.
“The Minnesota Biofuels Association applauds Rep. Craig for introducing bipartisan legislation to provide permanent year-round access for E15 nationwide. The EPA shouldn’t have to issue annual emergency waivers for a fuel that results in fewer evaporative emissions, lower costs at the pump, and added economic value for farmers. We appreciate the Congresswoman’s work to deliver long-term regulatory certainty for this critical Minnesota-made renewable fuel,” said Brian Werner, Executive Director of the Minnesota Biofuels Association.
“We thank our renewable fuel supporters in the House for introducing this bipartisan legislation and continuing to fight for fair market access for E15 and our nation’s farmers and ethanol producers,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “With just a few months left in this Congress, we urge lawmakers to swiftly adopt this bill and deliver a win for American families seeking cleaner, lower-cost fuel options.”
“E15 is one of the best ways to lower costs for consumers while also reducing our carbon emissions. For the past six summers, hardworking families across America have enjoyed big summer savings on E15 ranging from 10 to 30 cents per gallon, with some locations selling the fuel for more than a dollar less per gallon,” said Emily Skor, CEO of Growth Energy. “But over the last three summers, those savings were only possible thanks to last-minute intervention by EPA. This bill will finally fix the outdated law that threatens to take E15 off the market when consumers need it most during the busy summer driving season. We thank Representative Craig (D-Minn), Representative Smith (R-Neb.), and the bipartisan group of cosponsors for their leadership to ensure we preserve consumer access to lower-carbon, more-affordable fuel options nationwide all year round. With bipartisan bills now introduced in both chambers of Congress, this is our chance to finally get this commonsense legislation across the finish line."
Click here to read the Nationwide Consumer and Fuel Retailer Choice Act.
Read the original press release here.
More...
Sep 20, 2024
The Energy Futures Initiative Foundation, led by Ernest J. Moniz, the 13th U.S. Secretary of Energy, today released a new study detailing pathways to further decarbonize ethanol to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.
“Low-carbon liquid fuels will be essential for decarbonizing transportation, and ethanol has been the leader in the move to affordable low-carbon fuels,” said Ernest J. Moniz, the 13th Secretary of Energy and EFIF president and CEO. “Through this research, we identified a portfolio of relatively low-cost solutions that can take ethanol close to a net zero fuel by 2035. In addition to being the most effective, scalable, and affordable low-carbon fuel today for vehicles, decarbonized ethanol also has the potential to help provide Sustainable Aviation Fuel. This market can help sustain the ethanol supply chain as a major driver of the rural economy.”
The EFIF research found nine currently available and affordable measures, which together could lower the carbon intensity (CI) score of renewable vehicle fuels to near-net-zero by 2035 and to net-zero or negative emissions by 2050. Effective measures included
Carbon Capture, Utilization, and Storage (CCUS) of the fermentation process;
Low carbon energy use at biorefineries including using combined heat and power generation with biomass and using carbon-free electricity;
Climate smart agriculture practices, including planting cover crops, no-till farming, using enhanced efficiency fertilizers, and fertilizer management practices.
To accelerate adoption of these practices, the report outlines policy recommendations such as a call for timely guidance on the 45Z clean fuels production tax credit slated to take effect in 2025 under the Inflation Reduction Act.
The research also looks at the potential of lower-carbon ethanol to help reduce emissions for on-road fuels as well as to close the “emissions gap” in hard-to-abate sectors like aviation.
The research, sponsored by Growth Energy, included months of research by EFIF staff to analyze the carbon intensity reduction potential, feasibility, and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S. All of the nine initiatives ultimately recommended are currently in use at select facilities and farms.
“EFIF’s recommendations are as practical as they are robust, reflecting innovations our members and their farm partners are already embracing,” said Emily Skor, CEO of Growth Energy, the largest ethanol trade association in the country. “We are proud of our industry’s progress to date and look forward to seeing biofuels continue to deliver on ambitious carbon reduction goals.”
The full EFIF study will be released in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC.
Read the original story here.
Sep 12, 2024
Gevo, Inc. (NASDAQ: GEVO), a leading developer of net-zero hydrocarbon fuels and chemicals, is pleased to announce that it has entered into a definitive agreement to acquire the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy, LLC (“Red Trail Energy”) for $210 million.
Acquisition highlights:
The Adjusted EBITDA1 from Red Trail Energy ethanol and CCS assets, when combined with Adjusted EBITDA1 from Gevo’s renewable natural gas (“RNG”) business, and other businesses, including Verity, is expected to make Gevo’s Adjusted EBITDA positive in 2025.
The purchase price includes the ethanol production asset and the CCS asset. Gevo expects that its capability of marketing carbon abatement in conjunction with delivery of advanced liquid fuels should deliver superior value to shareholders.
This acquisition is consistent with Gevo’s strategy while providing an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is well positioned to serve the U.S. and Canadian markets.
Synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota, by providing access to a wholly owned CCS site and additional supply of low carbon intensity (“CI”) ethanol.
The acquisition includes existing CCS assets with total sequestration capacity of 1 million metric tons per year, of which 160,000 metric tons per year are currently being utilized. This site could accommodate many future Net-Zero-type and related projects.
Accelerates Gevo’s fundamental capabilities related to feedstock procurement, plant operations, and the business of carbon abatement, which are expected to benefit Net-Zero 1 and other future SAF projects.
MANAGEMENT COMMENTARY
Gevo CEO, Dr. Patrick Gruber:
“We accomplish several things with this investment. It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation. Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota. This acquisition gives us the opportunity to build capability as a company and is a terrific training ground for our Net-Zero 1 project, as we inherit a trained cadre of employees who understand plant operations.”
“Carbon abatement for fuels and chemicals is core to our business. This acquisition enables immediate market development for sequestered carbon. We expect our ownership of these assets to generate significant near-term and long-term value for our shareholders, while adding new jobs and economic growth to rural communities in the region.”
Red Trail Energy CEO, Jodi Johnson:
“We are proud of what we have accomplished at Red Trail Energy and are excited about the future under Gevo’s leadership. Gevo’s vision for a sustainable future aligns with our philosophy of ‘our farms, our fuel, our future.’ We are confident this acquisition will drive positive change in the renewable energy sector.”
Gevo President and COO, Dr. Chris Ryan:
“As Net-Zero 1 and other production facilities come online, the infrastructure and resources that we will have acquired in North Dakota offer tremendous flexibility for how we might operate in the area. We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS. The CCS well gives us optionality for our Net-Zero 1 carbon sequestration needs. The regional synergies with Net-Zero 1, our development facility in Luverne, Minnesota, and our RNG operations in Northwest Iowa, are fantastic.”
“These assets and their operating team have a strong track record of safe and reliable operations and financial performance. We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.
“I want to welcome the employees of the Red Trail Energy facilities to the Gevo family. We look forward to building upon your cultural commitment to safety, regulatory compliance, operational excellence, and rural communities. I also want to thank our advisors, all of whom were integral in supporting this transaction, positioning Gevo to embark on this exciting phase in the growth of our company.”
ABOUT GEVO
Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including SAF, motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based RNG facilities in the United States. It also owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of their business systems through its Verity subsidiary.
Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
Read the original press release here.
Sep 7, 2024
Karen Tolkkinen’s recent column on ethanol was chock-full of myths, misinformation and half-truths about ethanol (“The time is ripe to rethink ethanol,” Sept. 1). We’d like to set the record straight.
First, there is no “food vs. fuel” conflict with ethanol. One-third of every bushel of corn processed by an ethanol biorefinery returns to the food supply. Only the starch in the corn is converted to ethanol; the protein, fiber, fat and other nutrients are concentrated and fed to livestock and poultry. The University of Minnesota says the 4 million tons of feed produced by the sttate’s ethanol plants is enough to feed nearly every cow, a quarter of all pigs and every single turkey raised in Minnesota.
Food security, quality and availability have improved — both domestically and globally — during the biofuels era, and there is no shortage of food. In fact, one-third of food produced worldwide is wasted each year, according to the United Nations. Meanwhile, U.S. cropland has decreased by 26 million acres since 2007, disproving the myth that ethanol has caused cropland expansion. How is that possible? Because farmers produce more grain on less land each year; Minnesota farmers produced 30% more corn per acre in 2022 than they did in 2007.
Second, Tolkkinen cited just one outlier study — which was rejected and debunked by many other scientists — to argue that ethanol is somehow worse for the environment than gasoline. In reality, researchers from places like the California Air Resources Board, Harvard University, the Massachusetts Institute of Technology and other institutions all agree that today’s corn ethanol reduces greenhouse gas emissions by up to 50% compared to gasoline.
Finally, Tolkkinen misunderstands the biofuels carbon cycle. Plants like corn remove CO2 from the atmosphere as they grow. That same CO2 is rereleased back to the atmosphere when corn is fermented into ethanol and when ethanol is combusted in an engine. The corn ethanol process is simply recycling atmospheric carbon. If CO2 from ethanol fermentation is captured and sequestered via a pipeline (rather than vented), then the amount of CO2 in the atmosphere has been permanently reduced. That’s why policymakers and some science-oriented environmental organizations see enormous greenhouse gas mitigation potential in corn ethanol paired with carbon capture.
Next time, we hope Tolkkinen visits with some of the 20,914 Minnesotans employed in the state’s ethanol industry. They not only know the difference between field corn and sweet corn, but they also know we can simultaneously feed and fuel Minnesota with environmentally friendly ethanol and nutritious co-products.
This letter was submitted by Brian Werner, executive director of the Minnesota Bio-Fuels Association, and Geoff Cooper, president and CEO of the Renewable Fuels Association.
Read the original story here.
Sep 5, 2024
CEDAR RAPIDS, Iowa — Fluid Quip Technologies (FQT), a global leader in advanced technologies for the biofuels, beverage alcohol and biochemical industries, announced strong results from their cutting-edge Low Energy Distillation™ (LED) and Grain Neutral Spirits (GNS) technologies after 12 months in operation at the Three Rivers Energy (TRE) facility in Coshocton, Ohio.
“Our LED and GNS systems have been running at the TRE facility for over 12 months and are providing results that outperform the guarantees of purity and energy reduction,” said Neal Jakel, President at Fluid Quip Technologies. “This represents the third installation of FQT’s proprietary LED systems which are helping ethanol facilities around the world significantly reduce energy consumption and lower their carbon footprint.”
Three Rivers Energy is committed to producing high-quality renewable fuels while reducing its carbon footprint. The success of FQT’s LED and GNS systems aligns with their mission, enabling them to enhance their production capabilities, reduce energy consumption, and optimize their resource utilization.
“The GNS system is producing ultra-pure alcohol exceeding specifications, and we have seen significant energy savings with the LED system over time,” said Eamonn Byrne, COO and Director, Three Rivers Energy. “We’re happy to have partnered with Fluid Quip Technologies to install these state-of-the-art solutions that have driven efficiencies, improved our product portfolio and contribute to a more sustainable future.”
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience within the agricultural processing, corn wet milling and dry grind ethanol industries. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the beverage, biofuels and biochemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.
Read the original press release here.
Sep 4, 2024
The U.S. exported 135.99 million gallons of ethanol and 1.09 million metric tons of distillers grains in July, according to data released by the USDA Foreign Agricultural Service on Sept. 4. Exports of both products were up when compared to July 2023.
The 135.99 million gallons of ethanol exported in July was down when compared to the 145.87 million gallons exported the previous month, but up significantly from the 112.1 million gallons exported in July of last year.
The U.S. exported ethanol to nearly three dozen countries in July. Canada was the top destination for U.S. ethanol export at 62.01 million gallons, followed by the U.K. at 25.14 million gallons and Colombia at 14.16 million gallons.
The value of U.S. ethanol exports reached $323.84 million in July, down from $339.75 million in June, but up from $314.07 million in July 2023.
Total U.S. ethanol exports for the first half of 2024 reached 1.1 billion gallons at a value of $2.48 billion, compared to 795.45 million gallons exported during the same period of last year at a value of $2.23 billion.
The 1.09 million metric tons of distillers grains exported in July was up when compared to both the 945,592 metric tons exported in June and the 984,341 metric tons exported in July 2023.
The U.S. exported distillers grains to approximately 40 countries in July. Mexico was the top destination for U.S. distillers grains exports at 247,903 metric tons, followed by South Korea at 123,725 metric tons and Indonesia at 73,769 metric tons.
The value of U.S. distillers grains exports reached $266.42 million in July, up from $246.28 million the previous month, but down from $294.96 million in July of last year.
Total U.S. distillers grains exports for the first six months of the year reached 6.97 million metric tons at a value of $1.88 billion, compared to 6.08 million metric tons exported during the same period of last year at a value of $1.97 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Sep 3, 2024
Operable U.S. biofuels production capacity increased in June, with gains for both ethanol and renewable diesel, according to data released by the U.S. Energy Information Administration on Aug. 30. Feedstock consumption was up for the month.
Total U.S. biofuel capacity reached 25.122 billion gallons per year in June, up 392 MMgy when compared to May and up 1.631 billion gallons per year when compared to June 2023.
Ethanol capacity expanded to 18.203 billion gallons per year in June, up 70 MMgy from the previous month and up 498 MMgy from June of last year.
Biodiesel capacity was at 2.022 billion gallons per year in June, unchanged from the previous month, but down 64 MMgy when compared to June 2023.
Capacity for renewable diesel and associated biofuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, reached 4.897 billion gallons per year in June, up 322 MMgy when compared to the previous month and up 1.197 billion gallons per year when compared to June of last year.
U.S. biofuel producers consumed 28.584 billion pounds of feedstock in June, up when compared to both the 28.495 billion pounds consumed the previous month and the 28.068 billion pounds consumed in June 2023. The consumption of feedstocks typically used to produce both ethanol and biomass-based diesel in June were up when compared to the same month of last year.
Biofuel producers consumed 24.984 billion pounds of corn in June, down from 25.502 billion pounds the previous month, but up when compared to the 24.747 billion pounds consumed in June 2023. Producers also consumed 129 billion pounds of grain sorghum feedstock in June, up from 91 million pounds in May, but down from 247 million pounds in June of last year.
U.S. biofuel producer consumed 1.267 billion pounds of soybean oil in June, including 578 million pounds consumed at biodiesel plants and 689 million pounds consumed at renewable diesel facilities. Soybean oil consumption was at 1.076 billion pounds in May, with 597 million pounds consumed by biodiesel producers and 479 million pounds consumed by renewable diesel plants, and at 1.207 billion pounds in June 2023, with 627 million pounds of that volume consumed by biodiesel producers and the remaining 580 million pounds consumed by renewable diesel facilities.
Corn oil consumption reached 403 million pounds in June, with 80 million pounds going to biodiesel production and 324 million pounds going to renewable diesel production. Corn oil consumption by biofuel producers was at 341 million pounds in May, including 81 million pounds consumed for biodiesel production and 259 million pounds consumed for renewable diesel production, and at 410 million pounds in June of last year, with 98 million pounds of that volume going to biodiesel production and 312 million pounds going to renewable diesel production.
Canola oil consumption was at 386 million pounds in June, including 162 million pounds consumed by biodiesel plants and 224 million pounds consumed by renewable diesel facilities. Canola oil consumption was at 397 million pounds in May, including 158 million pounds consumed for biodiesel and 239 million pounds consumed for renewable diesel, and at 317 million pounds in June of last year, with 195 million pounds of that volume going to biodiesel production and 122 million pounds going to renewable diesel production.
Biofuel producers also consumed 37 million pounds of other vegetable oils in June, up from 18 million pounds the previous month. The EIA withheld the volume of other vegetable oils that went to biofuel production in June 2023 to avoid disclosure of individual company data.
U.S. biofuel producers also consumed 714 million pounds of yellow grease, 567 million pounds of beef tallow, 57 million pounds of white grease, 21 million pounds of poultry fat, and 18 million pounds of other waste oils, fats and greases in June. Consumption was at 513 million pounds, 449 million pounds, 70 million pounds, 20 million pounds, and 17 million pounds, respectively, in May, and at 550 million pounds, 437 million pounds, 71 million pounds, 12 million pounds and 15 million pounds, respectively, in June 2023.
The EIA withheld data on the consumption of a variety of other feedstock types, including agriculture and forestry residues, other agriculture and forestry products, other recycled feeds and wastes, and other biofuel feedstocks note elsewhere specified or identified in order to avoid disclosure of individual company data.
Additional information is available on the EIA website.
Read the original story here.
Aug 27, 2023
ROCHESTER, Minn.- The Rochester Area Chamber of Commerce released a statement on Monday, Aug. 26 congratulating U.S. Representatives Adam Finstad (R) and Angie Craig (D) for their work with the Congressional Sustainable Aviation Caucus to promote cleaner fuel for commercial airlines and the potential business that support could bring to the state of Minnesota.
It was sentiment that was shared by Richard Syverson, a chairman for the Minnesota Corn Grower Association's Board of Directors.
Sustainable Aviation Fuel (SAF), which ideally reduce carbon emissions for planes by around 50 percent, are often derived from crops like corn or soybeans which could mean expanded business for farms already producing crops for the ethanol industry.
"SAF is kind of an exciting product for us in the ethanol business, we've been promoting our product to the driving public for years and years and still haven't won everybody over to the use in cars, whereas the airlines are coming to us," Syverson said.
The federal government and the state of Minnesota are already incentivizing production and use of SAF through SAF tax credits which reward fuels that reduce carbon emissions in planes by 50 percent or more.
Syverson said with the bipartisan support in the congress he is hoping incentives like this will only increase in scope and length as time goes on.
Brian Werner, executive director of Minnesota Biofuels said that with current incentives, and the U.S. Department of Energy's goal of reducing plane emissions by 50 percent by 2050, it is projected that demand for SAF could be double the demand for ethanol by that time, with private industry hopefully producing 35 billion gallons annually.
Werner said even with continued bipartisan and local support in the state it may take several years to get infrastructure in place for local ethanol producers to get involved in the growing industry, but he said he was optimistic.
"It is going to be a process but it is one we are very excited about because it will produce a lot of new markets," Werner said.
As of 2022, the U.S. Department of Energy says commercial air travel accounted for 2 percent of the world's carbon emissions.
The department hopes that through SAF support programs that it will half that by 2050 and that private industry will be able to support 100 percent of the demand for the biofuel.
Read the original story here.
Aug 27, 2024
The USDA currently predicts fiscal year (FY) 2025 U.S. ethanol exports will reach $4.3 billion. Export volumes are expected to edge up to a record 2 billion gallons, according to the agency’s latest quarterly trade outlook, published Aug. 27.
USDA’s FY 2025 begins Oct. 1, 2024, and ends Sept. 30, 2025. The expected $4.3 billion in FY 2025 ethanol exports is unchanged from the revised FY 2024 forecast. Ethanol export unit value is expected slightly lower following U.S. corn prices, the USDA said in the report.
According to the agency, little change is aggregate sales to top export markets is expected as blending increases in Ontario and Quebec slow, Europe’s ethanol prices moderate further or stabilize, India’s ethanol feedstock supplies recover, and the recovery of Colombia’s blending rates come to an end. Brazil’s 18% import duty on ethanol is expected to keep the arbitrage window closed for U.S. sales.
FY 2024 ethanol exports are raised $300 million from May to a record $4.3 billion, an increase of $800 million over the previous year and $400 million higher than the previous record, which was set in FY 2022. Export volumes for FY 2024 are expected to reach 1.9 billion gallons.
The report indicates that U.S. ethanol is generally more price competitive than Brazilian product, helping to boost global U.S. sales. Canada has become the world’s largest ethanol importer, and the U.S. continues to supply all the country’s ethanol imports, according to the USDA. The U.S. ethanol industry is also the top foreign supplier to the European Union and United Kingdom, which are currently the world’s second and third largest ethanol importers. Other important markets, such as India, Colombia, South Korea, the Philippines, Mexico and Peru, are seeing strong-to-record U.S. sales. The window of arbitrage for U.S. sales to Brazil has remained mostly closed this year due to the 16% duty, which was raised to 18% in January.
Read the original story here.