In the News

Renewable Fuels Association

Feb 17, 2021

The Renewable Fuels Association released its 2021 Ethanol Industry  Outlook  and  Pocket Guide today during the 26th annual National Ethanol Conference. The annual publications and conference all share a common theme: Essential Energy. A related  video  also debuted at the event.

“As you review the 2021 Ethanol Industry Outlook, I hope you do so with the same sense of pride I have for our response to the unparalleled challenges of the past year,” RFA President and CEO Geoff Cooper writes in the introduction. “But more importantly, I hope you recognize that as we move forward, it is with the understanding that tomorrow’s challenges of climate change, food and energy security, and rural prosperity will continue to make ethanol an Essential Energy.”

Now in its 22nd year, the annual Outlook publication provides policymakers, regulators, consumers, the media, and renewable fuel advocates with key statistics, trends, insight, and analysis on the latest developments in the U.S. renewable fuels industry, as well as commentary on what to expect in 2021. The publication, which is recognized worldwide as the go-to source for ethanol industry facts, also features a detailed listing of every fuel ethanol plant in the country, along with production capacity. The Pocket Guide to Ethanol contains much of the same information as the Outlook, but in an abbreviated format and smaller size for ease of use.

Read the original press release here.

Renewable Fuels Association

Feb 16, 2021

Even after experiencing a sudden drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released today by the Renewable Fuels Association.

The economic analysis  was prepared for the RFA by John M. Urbanchuk, Managing Partner of ABF Economics.

“Despite the disruptive effects of the COVID pandemic, economic and regulatory challenges in 2020, the ethanol industry continued to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of crude oil and petroleum products,” Urbanchuk writes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable.”

In 2020, more than 62,000 U.S. jobs were directly associated with the ethanol industry, which supported an additional 242,600 indirect and induced jobs across all sectors of the economy. The industry created $18.6 billion in household income and contributed $34.7 billion to the national gross domestic product. This was 19 percent below 2019’s GDP contribution, primarily as the result of lower output and lower prices.

“Even though the pandemic created enormous headwinds for our industry in 2020, the resilience of the men and women who work in the U.S. renewable fuels sector shined through,” said RFA President and CEO Geoff Cooper. “The ethanol industry certainly was not spared from the devastation that beset the entire U.S. economy in 2020, but the nation’s 200-plus ethanol biorefineries continued to provide good-paying jobs in scores of rural communities. And those essential workers did more than produce renewable fuel and livestock feed in 2020—they also made virus-killing sanitizers and the dry ice used to ship millions of doses of life-saving vaccines.”

Read the original press release here

Ethanol Producer Magazine

Feb 12, 2021

A new analysis from a renowned carbon accounting firm finds that the greenhouse gas emission reductions achieved under the Renewable Fuel Standard far exceed the reductions originally projected by EPA. Between 2008 and 2020, the use of biofuels under the RFS has resulted in cumulative savings of 980 million metric tons of carbon dioxide-equivalent greenhouse gas emissions.

The research,  which updates the results from a previously published study, was conducted for the Renewable Fuels Association by Stefan Unnasch and Debasish Parida of Life Cycle Associates.

The greater-than-expected GHG savings are attributable to several factors: corn ethanol provided larger GHG reductions than anticipated by EPA; the actual carbon intensity of gasoline and diesel was worse than estimated by EPA; and use of biodiesel and renewable diesel exceeded EPA’s original expectations.

“The Renewable Fuel Standard has been the single most effective and efficient policy we’ve ever had for decarbonizing our nation’s transportation fuels,” said RFA President and CEO Geoff Cooper. “This research clearly demonstrates that the RFS has already put us firmly on the path toward net-zero GHG emissions by mid-century, and the program will continue to serve as the bedrock for future efforts to combat climate change. The RFS has overachieved its original expectations, and renewable fuel producers and farmers across the country should be extremely proud of their important role in securing 1 billion metric tons of carbon reduction.”

According to the report, the carbon intensity of corn-based ethanol used toward the RFS is now 45% below the carbon intensity of gasoline, having dropped 20% between 2008 and 2020.  The authors attribute ethanol’s shrinking carbon footprint primarily to improvements in the corn ethanol production process, growth in the use of low-carbon biogas as the process fuel, and the elimination of coal as a thermal energy source for dry mill ethanol plants.

Cooper noted that the Life Cycle Associates study is consistent with recently released research from Environmental Health & Engineering Inc., which showed that  GHG emissions for ethanol  are 32% to 62% lower than gasoline, with a central best estimate of 46%. In addition, the assessment showed that carbon emissions from converting prior land uses to corn farming make up only 7% of the biofuel’s total GHG emissions—a much smaller amount than generally recognized.

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Governor Tim Walz

Feb 10, 2021

[ST. PAUL, MN]— As Chair of the Governors' Biofuels Coalition, Governor Tim Walz today urged President Joe Biden to support the biofuels industry, combat climate change, and invest in rural economies by reversing the previous Administration's actions that supported oil refineries at the expense of the ethanol industry, a cornerstone of many Midwestern economies.  

"Over the years, we have seen firsthand how the ethanol industry has transformed and revived rural communities and contributed to the fight against climate change," said Governor Walz. "Today, those communities, along with the ethanol industry, are endangered. These proposed executive actions would provide much needed stability in rural America and provide countless benefits to all Americans."

"Action by the federal government on aromatics and the Renewable Fuel Standard would complement and leverage our efforts in Minnesota to replace petroleum transportation fuels and reduce carbon emissions through biofuels,"said Minnesota Department of Agriculture Commissioner Thom Petersen.

Governor Walz urged President Biden to issue an Executive Order enforcing the Clean Air Act by replacing the use of aromatics in gasoline with cleaner alternatives. Reducing aromatics would lessen the risk of respiratory diseases and eliminate gasoline's most carbon intensive component. He also encouraged the Biden Administration to adopt new Renewable Fuel Standard regulations that would prevent billion-dollar companies from edging out the biofuels industry.

Governor Walz also encouraged President Biden to support the effort led by Senator Klobuchar and Senator Ernst to create a renewable fuel infrastructure grant program and to streamline underground storage tank regulations. Their plan would smooth the path to higher biofuel blends and amplify the impact of the executive actions outlined in the Governor's letter.

Full text of the letter is below.

Dear President Biden:

Please accept my congratulations on your election as the 46th President of the United States. I write to you today as the Governor of Minnesota and as the chair of the Governors' Biofuels Coalition. For over two decades, this bipartisan coalition has worked together to advance biofuels, agriculture, and environmental policy with a unified message from the nation's governors. We look forward to working with you and Vice President Harris on a range of issues important to all Americans.

It is clear that we collectively face unprecedented and complex challenges that will require considerable ingenuity and determination to solve. One of those challenges is climate change. I know you are committed to reengaging the federal government in policies and programs to make progress in this area and that you are dedicated to partnering with states in that effort. I look forward to such a partnership.

As you begin your critical work to address climate change and promote economic opportunity, I encourage you to work with states on making biofuels a key component of addressing transportation sector emissions. Biofuels are especially important in the near term as we begin the necessary transition into a carbon-neutral transportation sector. And they provide significant opportunity for economic growth and investment across rural America.

Two key administrative actions will help ensure the future of the states' biofuels community, which is now threatened by trade wars, a litigious petroleum industry, and shrinking demand caused by the pandemic. Swift support for this endangered industry is crucial, which is why I urge you to take the following actions to support biofuels in the years ahead.

Issue an Executive Order Banning the Use of Aromatics in Gasoline

To benefit public health, the environment, and the biofuels industry, I urge you to consider executive action directing the enforcement of the Clean Air Act's aromatics provision. That provision, which has been largely unenforced for decades, requires the reduction of toxic gasoline aromatics, replaced with cleaner octane additives.

Reducing aromatics would lessen the fine particulate emissions associated with respiratory diseases. Enforcement of the aromatics provision would also create well-paying jobs and eliminate gasoline's most carbon intensive component. This order would expand the market for ethanol by a projected twofold increase, a key to our collective efforts to revitalize jobs and encourage economic growth in rural America.

Adopt New Renewable Fuel Standard Regulations

The Renewable Fuel Standard (RFS) is one of Congress's most significant energy policy accomplishments. However, the RFS's waiver provision has been used by billion-dollar companies to obtain inappropriate blending waivers that have severely damaged the nation's biofuels industry. The most harmful abuse—the manipulation of the RFS's small refinery exemption—is but one of several ways the regulations have been distorted to keep the RFS from meeting its full potential. I would welcome an opportunity to work with you and your Administration on RFS regulations to ensure that they create the positive impact that was intended.

Over the years, I have seen firsthand how the ethanol industry has transformed and revived rural communities and contributed to the fight against climate change. Today, those communities, along with the ethanol industry, are endangered. These proposed executive actions would provide much needed stability in rural America and provide countless benefits to all Americans.

As you consider these actions, I also encourage you to support the effort led by Senator Klobuchar and Senator Ernst to create a renewable fuel infrastructure grant program and to streamline underground storage tank regulations. Their plan would smooth the path to higher biofuel blends and amplify the impact of the executive actions outlined in this letter.

Thank you for your consideration of these important actions. If members of your staff need additional information, please do not hesitate to reach out to Larry Pearce, the Governors' Biofuels Coalition's executive director (402-651-2948,  This email address is being protected from spambots. You need JavaScript enabled to view it.).

Sincerely,

Tim Walz, Chair

and Governor of Minnesota

Read the original press release here.

 

Ethanol Producer Magazine

Feb 10, 2021

The U.S. Energy Information Administration lowered its forecast for 2022 fuel ethanol production in its latest Short-Term Energy Outlook, released Feb. 9. The forecast for 2021 ethanol production, however, was maintained.

The EIA currently predicts ethanol production will average 980,000 barrels per day this year, up from 900,000 barrels per day in 2020. In 2022, the agency currently predicts ethanol production will increase to 1.01 million barrels per day, down slightly from the 1.02-million-barrel-per-day prediction made in the January STEO.

On a quarterly basis, ethanol production is expected to average 940,000 barrels per day during the first quarter of 2021, increasing to 960,000 barrels per day in the second quarter, 1 million barrels per day in the third quarte rand 1.01 million barrels per day in the fourth quarter. Production is expected to fall to 1 million barrels per day during the first quarter of 2022, before increasing to 1.01 million barrels per day in the first quarter, 1.02 million barrels per day in the third quarter and 1.03 million barrels per day in the fourth quarter.

Ethanol consumption is expected to average 880,000 barrels per day in 2021, up from 820,000 barrels per day in 2020. In 2022, consumption is expected to increase to 910,000 barrels per day.

A full copy of the EIA’s February STEO can be downloaded from the agency’s  website

Read the original story here.

Roll Call

Feb 9, 2021

By Tom Daschle

Growing up in South Dakota, agriculture has always been in my blood.

For nearly three decades, I had the honor of representing South Dakota — where agriculture is  the leading industry,  with a $21 billion annual impact on the economy — in Congress. During nearly 20 years in the Senate, I worked across the aisle with Republican colleagues, many with dramatically different viewpoints on policy, to pass a wide range of agriculture-related legislation. Highlights included working with Bob Dole to pass the “clean octane” amendment to the  1990 Clean Air Act,  and 10 years later, teaming up with Richard Lugar to introduce what would become the first renewable fuel standard.

It became clear to me early on that a robust domestic biofuels industry, including ethanol, would not only be good for farmers and our rural economy but also for the environment, public health and the nation’s energy security. Unfortunately, confusion and misinformation — about ethanol’s effects on food prices and vehicle performance — have hindered the realization of these benefits.

Called “the world’s most important food crop”  in one Washington Post article,  corn has a unique ability to help with climate change, absorbing one-third more carbon from the atmosphere than most other plants. Only 3 percent of plants have this characteristic, but they account for 23 percent of all terrestrial carbon fixation.

Experts at USDA and Argonne National Laboratory have concluded  that corn ethanol produced with precision agriculture and other conservation practices can reduce greenhouse gas emissions by 50 percent to 76 percent compared to gasoline. Other experts predict that over the next several years, high-octane, low-carbon, or HOLC, fuels, such as ethanol, will be classified as ultra-low carbon fuels,  surpassing the greenhouse gas benefits of vehicles running on electricity produced from coal and natural gas.

 I’m encouraged to see the Biden administration already addressing the nation’s many crises. On his first day, President Biden launched a blitz of executive actions  targeted at four priorities:  the COVID-19 pandemic, the economy, racial justice and climate change. Smart agriculture policy that supports clean-burning, high-octane, low-carbon renewable fuel can help advance the president’s agenda on all fronts. 

Fortunately, the administration doesn’t need Congress to act in order to set a national high-octane gasoline standard using ethanol’s “clean octane.” The statutory authority has been in place since the 1990 Clean Air Act, reaffirmed by Congress in the 2005 law  that established the first renewable fuel standard.

The transportation sector, almost completely dependent on gasoline and diesel, is the nation’s largest source of greenhouse gas emissions. Adding electric vehicles into the fleet will help over time, but improving the quality of the gasoline we use now — more than 100 billion gallons annually  — would reap immediate benefits. Higher octane fuels would allow automakers to  dramatically increase fuel economy  and reduce carbon emissions, benefiting both the environment and public health.

The best way to increase gasoline octane is with HOLC fuels (mid-level ethanol blends such as E30) that replace the toxic compounds now used by refiners, which emit high levels of ultrafine particle pollution, especially in new direct-injection engines. A  recent Harvard study  associated air pollution with higher COVID-19 mortality rates, providing even more reason to switch to HOLC fuels. 

I know that South Dakota and other corn-producing states in the Midwest can play a critical role in getting us there. Now is the time for the Biden administration to make it so with a new fuel economy and greenhouse emissions rule that includes a national “clean octane” standard. The anticipated review and tightening of the  Safer Affordable Fuel-Efficient Vehicles rule  is an opportunity to demonstrate our renewed commitment to science and put us on a path toward reaching net-zero emissions by 2050.

Taking this critical step would improve the health of our environment, our lungs, and our economy — all at the same time.

Read the original story here

Senator Amy Klobuchar

Feb 8, 2021

WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) reintroduced bipartisan legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.

The Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over 5 years for infrastructure grants for fuel retailers and direct the Administrator of the Environmental Protection Agency (EPA) to finalize a proposed rule to repeal E15 labeling requirements warning drivers about E15’s potential impact on cars, which may confuse and deter drivers from using E15, a blend of gasoline with 15 percent ethanol. The bill would also direct the EPA Administrator to finalize provisions from the same proposed rule to allow certain existing Underground Storage Tanks (UST) to store higher blends of ethanol.

"Diversifying our fuel supply and introducing higher blends of biofuels in the market are great steps forward as we work to promote clean energy technologies and invest in transportation infrastructure,” said Senator Klobuchar. “This legislation will make cleaner fuels more accessible – ultimately benefiting both the economy and the environment.”

“I’ve long been pushing to expand infrastructure for high blends of biofuel, like E15, which is critical for Iowa’s economy. This bipartisan effort will help advance the deployment of renewable fuel infrastructure and provide consumers across Iowa and the country with greater access to cleaner, more affordable choices at the pump,” said Senator Ernst.

In 2015 and 2020, the United States Department of Agriculture (USDA) authorized and implemented one-time infrastructure grant programs to increase the availability of renewable fuels, known as the Biofuel Infrastructure Program (BIP) and the Higher Blends Infrastructure Incentive Program (HBIIP), respectively. Current EPA regulations require all gas pumps that dispense E15 to display a warning label noting that it may be unsafe for use in certain vehicles, though 95 percent of all vehicles are approved for E15 and over 18 billion miles have already been driven on the fuel. Current UST regulations require retailers who cannot find installation documentation for their tanks or piping to prove that the equipment is safe for higher blends of ethanol. Because this often cannot be done without breaking concrete to check the UST, some compatible retailers choose to not offer E15. This legislation would allow retailers who cannot find installation documentation for their UST to store higher blends of ethanol if they use certain advanced spill monitoring or if the tank is double walled.

Read the original press release here.

Ethanol Producer Magazine

Feb 5, 2021

The U.S. exported more that 1.33 billion gallons of fuel ethanol last year, down from 1.46 billion gallons in 2019, according to data released by the USDA Foreign Agricultural Service on Feb. 5. Despite the pandemic, that level of exports is the fourth highest volume on record. Distillers grains exports reached 10.96 million tons, up from 10.81 million tons in 2019.

Ethanol exports for December were at 111.33 million gallons, down slightly from the 113.61 million gallons exported in November, and down from the 147.08 million gallons exported in December 2019.

Canada was the top destination for U.S. ethanol exports in December at 22.91 million gallons, followed by South Korea at 12.94 million gallons, and China at 12.52 million gallons.

The value of U.S. ethanol exports was at $188.73 million in December, down from both $193.22 million gallons in November and $246.46 million gallons in December 2019.

Total U.S. ethanol exports for the full year 2020 reached 1.33 billion gallons at a value of $2.33 billion, compared to 1.46 billion gallons at a value of $2.35 billion in 2019.

Canada was the top destination for U.S. ethanol exports last year at 326.43 million gallons, followed by Brazil at 199.82 million gallons and India at 189.63 million gallons. In 2019, Brazil was the top destination for U.S. ethanol at 332.33 million gallons, followed by Canada at 330.67 million gallons and India at 173.8 million gallons.

Distillers grains exports for December were at 842,738 tons, down from 927,604 tons in November, but up from 765,960 tons in December 2019.

The value of U.S. distillers grains exports for December reached $196.22 million, down from $203.23 million in November, but up from $154.66 million in December 2019.

Total U.S. distillers grains exports reached 10.96 million tons at a value of $2.33 billion in 2020, compared to 10.81 million tons at a value of $2.23 billion in 2019.

Mexico was the top destination for U.S. distillers grains exports in 2020 at 1.74 million tons, followed by Vietnam at 1.29 million tons and South Korea at 1.27 million tons. Mexico was also the top destination for U.S. distillers grains in 2019 at 2.03 million tons, followed by South Korea at 1.25 million tons and Vietnam at 1.2 million tons.

 The Renewable Fuels Association pointed out that nearly one out of every 10 gallons of ethanol produced last year was exported. “COVID-19 and protectionist trade barriers created enormous headwinds for ethanol in the international market in 2020,” said Geoff Cooper, president and CEO of the RFA. “But the U.S. ethanol industry again rose to the challenge and supplied more than 1.3 billion gallons of clean, green renewable fuel to customers across the globe. American ethanol continues to play a crucial role in helping nations around the world reduce consumer fuel costs, cut harmful tailpipe pollution, and meet decarbonization commitments under the Paris climate agreement. We are especially encouraged to see that China finally re-entered the market in December, importing nearly 13 million gallons of U.S. ethanol. We enter 2021 on solid footing and the industry is optimistic about the prospects for meaningful growth in ethanol exports.”

Growth Energy expressed optimism in global ethanol demand.   “In a year where gasoline demand has taken an unprecedented dive due to the COVID-19 pandemic, we’re optimistic to see worldwide ethanol demand continue to provide U.S. producers with market opportunities,” said Emily Skor, CEO of Growth Energy.

“One of our main objectives at Growth Energy is building strategic global partnerships with countries around the world in order to grow demand here at home and to underscore to international leaders the economic and environmental benefits of ethanol. As we look ahead, a global movement is afoot to achieve aggressive clean energy goals, and the 2020 ethanol export number reflects that the world is seeing biofuels as a part of the solution as an affordable, low-carbon, high-octane fuel.” 

Additional data is available on the USDA FAS website

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