In the News

Ethanol Producer Magazine

Apr 30, 2024

Archer Daniels Midland Co. on April 30 released first quarter financial results, reporting improved earnings for Vantage Corn Processors subsegment, which includes the company’s dry mill ethanol plants. 

ADM’s Carbohydrate Solutions segment, which houses its ethanol business, reported $248 million in segment operating profit during the first quarter, down 11% when compared to the same period of 2023. The company said its Starches & Sweeteners subsegment decreased $52 million, or 17%, as strong starches and sweeteners margins were offset by lower domestic ethanol markets due to strong industry production and elevated stocks. The Vantage Corn Processing subsegment reported a $13 million loss, which was a $21 million, or 62%, improvement over the $34 million loss reported for the first quarter of last year. ADM said strong demand for sustainably certified exports of ethanol supported volumes and higher margins. 

Moving into the second quarter, ADM Interim Chief Financial Officer Ismael Roig said the company expects to see solid demand for ethanol, both domestically and in the export markets. ADM Chairman and CEO Juan Luciano indicated there remains uncertainty in the ethanol market, but said the company is cautiously optimistic that inventories will balance, providing a small lift to margins. 

Overall, ADM reported $1.311 billion in segment operating profit for the first quarter, down 24% when compared to the same period of last year. Earnings per share were $1.42, down 33%. 

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Ethanoll Producer Magazine

Apr 23, 2024

The USDA on April 23 awarded more than $43 million in grants through the Higher Blends Infrastructure Incentive Program to support projects that will increase the availability of domestic biofuels in 15 states. 

According to the USDA, the $43 million will support 57 projects in California, Florida, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, New York, Oklahoma, Pennsylvania, South Dakota, Texas and Wisconsin. Individual awards range from as low as $40,114 to as high as $5 million.

The USDA awarded the $43 million in HBIIP grants as part of a larger $238 million funding announcement that also included more than $194 million in loans and grants that were awarded through the agency’s Rural Energy for America Program. 

“The Biden-Harris Administration and USDA are committed to expanding access to modern clean energy systems and fueling options that strengthen the nation’s energy independence while creating good-paying jobs and saving people money,” said Agriculture Deputy Secretary Xochitl Torres Small. “As we celebrate Earth Day this year, we are excited to partner with hundreds more family farms and small businesses to address the impacts of climate change, grow the economy and keep rural communities throughout the country strong and resilient.”

HBIIP provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, including ethanol and biodiesel. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks.

Since the start of the Biden-Harris Administration, USDA has invested approximately $135 million to increase access to biofuels at fueling stations. In June 2023, USDA made $450 million available in Inflation Reduction Act funding through the HBIIP to expand the use and availability of higher-blend biofuels.

USDA continues to accept applications for funding to expand access to domestic biofuels. These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. Applications are being accepted quarterly through Sept. 30, 2024.

A full list the $43 million in HBIIP awards made April 23 is available on the USDA’s website.

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Ethanol Producer Magazine

Apr 22, 2024

CoBank is predicting a positive outlook for ethanol in 2024 as plants capitalize on lower corn prices and improved margins, according to the company’s latest Quarterly Research Report, released April 11. 

Ethanol production in January, however, was down. Only 434 million bushels of corn went to fuel alcohol production during the first month of the year, down 10% when compared to the previous month, and down 2% when compared to January 2023. 

According to CoBank, reports indicate that improved ethanol demand has encouraged some marginal plants to come back online. These restarted plants are pushing ethanol supplies higher and could create minimal oversupply.

Within the report, CoBank explains that ethanol producers are optimistic that higher blends and sustainable aviation fuel (SAF) will offset the impact of electric vehicles (EVs). “Rising E15 and E85 blending enables the ethanol industry to hold the line in an otherwise declining gasoline market,” CoBank said in the report. “Every 1 million new battery-only EVs sold reduces ethanol demand by 45 million gallons per year.”

While the U.S. Department of Treasury has set to release the revised 40BSAF-GREET model which will be used to calculate greenhouse gas (GHG) emissions reductions for the purposes of the SAF tax credit, CoBank estimates that ethanol producers will need to reduce carbon intensity (CI) by 25 to 30% to qualify. Those reductions could come from sourcing lower CI grains or utilizing carbon capture and storage (CCS) technology, the company said in the report. The 40BSAF-GREET model will also set the tone for implementation of the 45Z clean fuel production tax credit, which is scheduled to go into effect on Jan. 1, 2025, CoBank added.

The report also briefly discusses the impact of lower renewable identification numbers (RINs), which CoBank said may reduce biofuel plant utilization and could force producers to slow or shelve plans to expand renewable diesel capacity. 

A full copy of CoBank’s latest Quarterly Research Report is available on the company’s  website.

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Ethanol Producer Magazine

A joint statement issued by President Joe Biden and Japanese Prime Minster KISHIDA Fumio on April 10 outlines the intentions of the two countries to cooperate on expanding the availability sustainable aviation fuel (SAF), including SAF made from ethanol. 

Kishida last week made an official visit to the White House, where he and Biden celebrated a new era of U.S.-Japanese strategic cooperation. The statement outlines cooperation initiatives in the areas of defense and security; space exploration; innovation, economic security and climate action; global diplomacy and development; and fortifying people-to-people ties. 

Regarding actions in innovation, economic security and climate action, Biden and Kishida discussed efforts to cooperate on the development and deployment of next generation clean technologies, including SAF. 

“We intend to advance widespread adoption of innovative new clean energy technologies, and seek to increase the globally available supply of sustainable aviation fuel or feedstock, including those that are ethanol-based, that show promise in reducing emissions,” they said in the joint statement. 

A fact sheet released by the White House indicates the U.S. and Japan have reaffirmed their joint aim of decarbonizing the aviation industry, including the goal of net-zero emissions by 2050. The two countries also recognize the importance of realizing the U.S. Sustainable Aviation Fuel Grand Challenge 2030 goal of 3 billion gallons of SAF. Similarly, Japan has set a goal to replace 10% of the fuel consumed by Japanese airlines with SAF by 2030.

“To support achieving these goals, the United States pledges to seek to support the increase of globally available supplies of SAFs or feedstocks, including those that are ethanol-based, and commit to working in ICAO to identify solutions that accurately measure and actively reduce the carbon intensity of global SAF feedstocks and products,” the White House said in the fact sheet. “Simultaneously, Japan commits to advancing R&D efforts to develop and commercialize SAF technologies, including Alcohol-to-Jet (ATJ), through support measures by Japan’s Ministry of Economy, Trade and Industry.”

The Renewable Fuels Association, Growth Energy and the U.S. Grains Council on April 16 issued a joint statement expressing gratitude that the two countries are recognizing the importance of ethanol as a SAF feedstock.

“Our organizations appreciate the dedication and support of USDA’s Foreign Agricultural Service (FAS), the U.S. Trade Representative and other U.S. government agencies advocating for grain-based ethanol in their international discussions,” the ethanol groups said in their statement. “These U.S. officials continue to highlight that ethanol is a readily available, low-carbon solution that can be used immediately as a carbon mitigation tool for the on-road, aviation, maritime and biochemical sectors.

“We thank the Biden Administration for its ongoing assistance in promoting U.S. ethanol abroad. Through our continued joint efforts to showcase U.S. ethanol benefits to the global community, we are collectively leading the transition to a low-carbon economy and supporting international climate commitments for a net-zero future.”

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Representative Angie Craig

Apr 11, 2024

WASHINGTON, DCU.S. Representative Angie Craig led a group of House Republicans and Democrats urging President Biden to take the steps necessary to permit the year-round sale of E15, a biofuel alternative cheaper than traditional gasoline. 

In their letter, the Members urged the President to issue the emergency waiver needed to allow the year-round sale of E15 to occur. The Members argued that doing so would help bolster America's energy resilience, strengthen the supply chain, lower costs for Americans and provide reliable markets for our nation’s farmers. 

“Home-grown, American biofuels are a straightforward, no-cost solution that strengthens our nation’s energy infrastructure, supports our farmers and reduces consumer costs. We request you expeditiously grant this emergency waiver for 2024,”they wrote 

Rep. Craig has long advocated to make the year-round sale of E15 permanent. Last year, Rep. Craig reintroduced the bipartisan, bicameralConsumer and Fuel Retailer Choice Act  to allow for the year-round, nationwide sale of E15.  

"The planet benefits and consumers save money when they can fill up their cars with E15. In the absence of a federal legislative fix, we need EPA to act now to provide an emergency waiver, so that retailers have enough time to ensure their supplies of this more affordable, earth-friendly fuel won't be interrupted this summer. We thank Representatives Craig, Smith, Pocan, and Johnson for leading the charge on this critical issue, and hope this letter spurs the EPA into taking action on behalf of American drivers,”said Emily Skor, CEO of Growth Energy. 

“We thank Reps. Craig, Smith, Pocan, and Johnson along with a group of bipartisan House members for calling on the Biden Administration to quickly take action to allow the nationwide sale of E15 through the coming summer,” saidRFA President and CEO Geoff Cooper. “These Representatives understand that with current fuel supplies lower than the last two summer driving seasons and the market pressures of ongoing geopolitical conflicts, it is imperative that consumers have access to this American made supply of lower-cost, cleaner fuel.” 

“Sales of E15 in Minnesota reached a record high last year, in part because consumers across the state were able to fill-up their tanks with the lowest-cost fuel all summer long. We applaud Representative Craig for fighting on behalf of Minnesota drivers who are at risk of losing the $0.16 per gallon average cost savings associated with E15 on June 1. We join her in urging the Biden administration to provide an emergency waiver for the sale of E15 during the 2024 summer driving season because of ongoing global energy supply chain challenges,”said Brian Werner, CEO of MN Biofuels. 

A full copy of the letter can be found here.  

Read the original press release here.

Ethanol Producer Magazine

Apr 9, 2024

The U.S Energy Information Administration increased its forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released April 9. The 2024 and 2025 forecasts for fuel ethanol blending were reduced. 

The EIA currently predicts ethanol production will average 1.03 million barrels per day this year, up from last month’s forecast of 1.02 million barrels per day. The agency maintained its 2025 fuel ethanol production forecast at 1.03 million barrels per day. Production averaged 1.02 million barrels per day in 2023. 

On a quarterly basis, fuel ethanol production was at 1.04 million barrels per day during the first quarter of this year and is expected to average 1.02 million barrels per day during the second and third quarters, partially rebounding to 1.03 million barrels per day in the fourth quarter. Moving into 2025, fuel ethanol production is expected to average 1.03 million barrels per day in the first and second quarters, 1.02 million barrels per day during the third quarter and 1.04 million barrels per day during the fourth quarter. 

The EIA currently predicts that fuel ethanol blending will average 930,000 barrels per day in both 2024 and 2025, down from the March STEO forecasts of 940,000 barrels per day. Fuel ethanol blending averaged 930,000 barrels per day last year. 

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Renewable Fuels Association

Apr 4, 2024

February U.S. ethanol exports slipped 7% to a still-robust 139.0 million gallons (mg), largely influenced by fluctuations in our five largest markets (representing 77% of total shipments). Canada was our largest destination for the 35th consecutive month despite a 17% shave from January. Denatured fuel ethanol accounted for 93% of the 47.9 mg crossing the border. Exports surged to the United Kingdom (up 53% to 21.2 mg) and Colombia (up 93% to 15.0 mg) but volumes tempered to India (down 59% to 13.4 mg) and the European Union (down 39% to 9.7 mg). Escalating exports to other larger markets helped curb the slippage, including Singapore (6.0 mg, +501%), Mexico (5.8 mg, +5%), Peru (5.7 mg, +133%), and Jamaica (4.0 mg, +1040%). Notably, exports to Japan marked a 4-year high of 1.7 mg following concerted efforts to enlarge the market, while Brazil was again absent. Year-to-date ethanol exports totaled 289.0 mg, a whopping 30% ahead of last year at this time.

For the sixth consecutive month, the U.S. did not log any meaningful imports of foreign ethanol (Brazil shipped 70,282 gallons of undenatured fuel ethanol).

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, rebounded 9% to 986,337 metric tons (mt) on mixed markets. Shipments to Mexico, our largest customer for the second straight month, climbed 4% to 259,658 mt—the nation’s second-largest monthly imports on record. South Korea imports of U.S. DDGS slipped 10% to 132,457 mt while volumes rallied to Indonesia, up 20% to 86,304 mt. The remaining half of February exports shipped to forty countries, including significant yet declining volumes to Vietnam (65,146 mt, down 8%), Japan (51,051 mt, down 11%), Canada (49,588 mt, down 24%), and Colombia (33,477 mt, down 26%). Year-to-date DDGS exports totaled 1.89 million mt, which is 23% more than last year at this time.

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Whitefox Technologies

Apr 2, 2024

Aylmer, ON, Canada, April 2, 2024– Whitefox Technologies  is pleased to announce that IGPC Ethanol Inc. has agreed to install the Whitefox ICE®membrane dehydration system at its ethanol plant located in Aylmer, Ontario. This is a landmark agreement as it represents Whitefox’s first opportunity in Canada. The installation project is anticipated to be completed during Q4 2024.

Paul Morin, P.Eng, IGPC Director of Operations  said “We are very excited to have a Whitefox ICE system integrated into our distillation area. This system yields many benefits that align with our strategic goals. It will help us lower our CI all the while reducing the strain on our sieves and making a more user-friendly distillation system. I am very impressed with how custom-made Whitefox integrates with our system to maximize energy savings.”

The Whitefox ICE® system  treats existing recycle streams to free up and debottleneck distillation-dehydration capacity, enabling IGPC Ethanol to lower natural gas use, cut carbon emissions, improve plant cooling, and increase potential production capacity depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint.

Jackie Hayes, Whitefox Business Development Manager North America“We are delighted to have partnered with IGPC on this project and excited as this represents our first installation in Canada. Whitefox has had a strong presence in Canada for over 20 years, as it is home to our Engineering and R&D centers in Calgary. Once the Whitefox ICE® solution is installed, it will assist IGPC to achieve key strategic objectives of Canadian biofuels policy – to make more fuel ethanol gallons in Canada, with reduced carbon intensity – and do so with lower energy and operating costs. I would like to thank Kevin Norton, Paul Morin and the team at IGPC for their support and commitment to install Whitefox Membrane technology.”

ABOUT BGW SP. Z O.O  

Since its establishment in 2007, IGPC Ethanol is committed to contributing to both the Renewable Fuels Industry and Ontario’s agricultural sector for the better by supporting local farmers and promoting a clean environment through sustainable, renewable fuel production. As a division of Integrated Grain Processors Co-operative Inc, IGPC Ethanol Inc. has become a leader in Southwestern Ontario’s business community in supporting environmentally sustainable economic growth, so far producing 380 million litres of denatured fuel grade ethanol and 340,000 tonnes of distillers’ grains.

https://igpc.ca/

ABOUT WHITEFOX TECHNOLOGIES LIMITED 

Whitefox specializes in technology development and process integration based on its proprietary membrane solutions. Whitefox ICE® (Integrated Cartridge Efficiency) is a bolt-on solution developed for the ethanol industry. With a small footprint, it is designed to de-bottleneck distillation and dehydration, which boosts output, improves CI scores by reducing energy and water consumption and reduces operation & maintenance costs by simplifying operations. Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.

www.whitefox.com

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

Read the original press release here.