In the News
Mar 26, 2024
Today, the Renewable Fuels Association, Growth Energy, National Corn Growers Association, American Farm Bureau Federation, National Farmers Union, and National Sorghum Producers sent a letter to the Environmental Protection Agency (EPA) calling on Administrator Michael Regan to act swiftly on an emergency waiver for E15 sales:
“New and ongoing conflicts across the globe continue to pose risks to the United States’ transportation energy supply. In addition to the conflict in Ukraine, now extending into its third year, the recent unrest and volatility in the Middle East present additional challenges to American energy security. In particular, attacks on shipping in the Red Sea have already had a disruptive effect on the transit of fuel in the region, raising the specter of constrained supply and increased gasoline prices at home,” wrote America’s top biofuel advocates.
To remedy the ongoing disruptions to global energy markets, stabilize gasoline prices for American consumers, and support domestic energy security, the authors urged EPA to quickly authorize the summer sale of gasoline blended with up to 15 percent ethanol.
“The consumer cost savings that result from allowing the year-round sale of E15, even on a temporary basis, are well-established. As a result of the emergency waivers issued in 2022 and 2023, consumers choosing E15 experienced average cost savings of 10-30 cents per gallon, with some locations offering over $1 off per gallon,” they added.
Read the original press release here.
Mar 21, 2024
WASHINGTON, D.C. – A multi-state coalition of biofuel and farm advocates called on President Biden’s Treasury Department to swiftly resolve any questions standing in the way of efforts to scale up U.S. production of Sustainable Aviation Fuel (SAF). Specifically, they urged the administration to quickly adopt the U.S. Department of Energy’s GREET model for the calculation of SAF tax credits (40B) under the Inflation Reduction Act – completing a process that was originally scheduled to conclude by March 1.
“We are disappointed that the administration did not fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” wrote 26 organizations across 13 states, including Clean Fuels Alliance America, Growth Energy, National Corn Growers Association, National Farmers Union, National Oilseed Processors Association, and the Renewable Fuels Association. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any realistic path to achieving U.S. SAF goals.”
SAF advocates emphasized the availability of well-established methodologies for certifying climate smart agriculture (CSA) practices, in contrast to speculative and unverifiable penalties for indirect land use change (ILUC) favored by opponents of U.S. agriculture.
“Failing to value regenerative and CSA advancements, as well as the full suite of biorefining innovations cited in guidance to date, would leave substantial carbon emissions reductions on the table and represent a missed opportunity to energize these promising sectors,” they wrote. “A consistent approach to ILUC and CSA is a vital part of giving farmers and SAF producers a credible, durable, and predictable framework for making the commitments necessary to effectuate IRA and the SAF Grand Challenge.”
The full text of the letter and a list of signers can be found here.
Mar 20, 2024
By failing to recognize and appropriately credit the benefits of ethanol, the 2027-2032 tailpipe emissions standards finalized today by the U.S. Environmental Protection Agency disregard an obvious near-term opportunity for achieving significant vehicle efficiency improvements and greenhouse gas emissions reductions, according to the Renewable Fuels Association.
“While we share the Biden administration’s vision for reducing carbon emissions and increasing energy efficiency, today’s final rule certainly isn’t the best way to accomplish that goal,” said RFA President and CEO Geoff Cooper. “Clearly, the substantive concerns raised by automakers, ethanol producers, fuel suppliers, consumer groups, and many others went unheard by the White House and EPA. Today’s final rule effectively forces automakers to produce more battery electric vehicles based on the false premise that they are ‘zero-emission vehicles.’ At the same time, the regulation would strongly discourage manufacturers from pursuing other technologies—like flex fuel vehicles and engines optimized to operate on high-octane, low-carbon ethanol—that could achieve superior environmental performance at a lower cost to American consumers.”
Throughout the rulemaking process, RFA strongly encouraged EPA to abandon its de facto EV mandate and instead adopt a technology-neutral, full lifecycle analysis approach for assessing the true greenhouse gas impacts of various transportation options. Unfortunately, EPA’s final rule continues to ignore the significant upstream emissions related to electricity generation, as well as the substantial emissions involved in battery mineral extraction and processing.
RFA initially urged EPA to reconsider its emissions standards proposal with testimony at a hearing in May 2023, and also took part in a joint letter to EPA Administrator Michael Regan in July. In its extensive comments submitted to EPA that month, RFA noted that multiple studies show ethanol significantly reduces greenhouse gas emissions and is on the way to net-zero carbon emissions by 2050 or sooner.
“If our nation is to reach its goal of net-zero GHG emissions by mid-century, we’ll need both cleaner, more efficient cars and cleaner, more efficient fuels,” RFA said in those comments. “And we’ll need to account for their emissions honestly using a full lifecycle approach. Focusing only on emissions from the vehicle—while ignoring emissions related to the extraction and production of the fuel used to power the vehicle—will almost certainly result in falling far short of the administration’s overall climate goals.”
RFA noted that voters are expressing increased concerns about the potential impact of EPA’s tailpipe regulations on future vehicle choices and prices. In a nationwide survey of 1,991 registered voters conducted last week, 68 percent said they oppose policies that mandate EVs, up from 63 percent when the same question was asked in September 2023. Meanwhile, more than two-thirds of voters responding support policies that expand the availability of high-octane mid-level ethanol blends and flex fuel vehicles.
Read the original story here.
Mar 8, 2024
NATSO, representing truck stops and travel plazas, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) on March 7 urged the U.S. EPA to authorize the summer sale of gasoline blended with up to 15 percent ethanol, or E15, to ensure lower fuel costs for consumers and fewer emissions from gasoline.
NATSO, SIGMA and NACS, which collectively represent 90 percent of the motor fuel sales in the United States, said in a letter to EPA that the geopolitical factors that necessitated action from EPA during the 2022 and 2023 summer driving seasons continue to persist. Circumstances emanating from the war in Ukraine coupled with recent unrest in the Middle East risk generating shipping disruptions, which will lead to a volatile fuel supply market.
"These circumstances create ongoing supply chain challenges, including a volatile fuel supply market," the fuel retail industry said. "None of these circumstances appear likely to dissipate in the coming months. This will result in continued, increasing pressure on transportation fuel markets that will make it challenging to ensure consistent, reasonably priced gasoline supply across the nation."
Access to summertime E15 sales will help to insulate the United States from these geopolitical threats by allowing additional, domestically produced biofuels to be blended into the fuel supply.
While current fuel supplies are adequate to meet demand, Americans drive much more during the summer months. Allowing E15 to be sold during this peak driving season will help to ensure the nation does not experience disruptions in the fuel supply or higher costs for consumers should unforeseen circumstances tighten supplies.
Read the original story here.
Mar 7, 2023
January U.S. ethanol exports ebbed 4% to a still-robust 150.0 million gallons (mg). Canada was our largest destination for the 34th consecutive month, hastened by a 32% jump in volume. Shipments totaled 57.7 mg and accounted for 38% of global sales. The U.S. exported 33.0 mg to India, up 61% to a three-year high. An elevated share of denatured fuel ethanol exports to both countries (totaling over 76 mg) helped mark January as the second-largest monthly denatured shipments on record. Other large and expanding ethanol export markets included South Korea (+32% to 11.0 mg), Colombia (+74% to 7.8 mg), and Mexico (+24% to 5.5 mg). However, declining volumes to the European Union (-2% to 15.9 mg, despite record volumes to Latvia) and the United Kingdom (-47% to 13.9 mg) put the brakes on the overall January total. Brazil again was notably absent from the market.
There were no U.S. imports on record in January, according to the monthly data.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slipped 9% to 902,376 metric tons (mt) on mixed markets. Shipments mounted 57% to Mexico, helping our neighbor regain its role as our top DDGS customer on a 26-month high of 249,582 mt (equivalent to 28% of January exports). Exports also rallied to Vietnam (+11% to 70,718 mt), Japan (doubled to 57,401 mt), Colombia (doubled to 45,286 mt), and China (+10% to 25,105 mt). These gains were largely offset by lower shipments to several larger markets, including South Korea (-16% to 146,439 mt), Indonesia (-19% to 71,647 mt), Turkey (slight downtick to 65,238 mt), and Canada (-7% to 64,983 mt).
Read the original story here.
Feb 29, 2024
Agriculture Secretary Tom Vilsack expressed confidence that the U.S. EPA will issue an emergency waiver to allow E15 to remain available this summer and discussed the USDA’s ongoing efforts with regard to sustainable aviation fuel (SAF) during a Feb. 28 congressional hearing.
Vilsack appeared before the U.S. Senate Committee on Agriculture, Nutrition and Forestry on Feb. 28 during a hearing that was focused on USDA oversight and the upcoming Farm Bill.
During the hearing, Sen. Joni Ernst, R-Iowa, expressed support for the final rule issued by the EPA in February that will allow E15 to be available year-round in eight Midwest states starting with the 2025 summer driving season, but expressed disappoint that the EPA delayed implementation of the rule until next year. She cited previous comments made by Vilsack and asked if he is confident the Biden administration will issue a year-round waiver allowing E15 sales to continue during the 2024 summer driving season on a nationwide basis. Such emergency waivers were implemented by the EPA for the 2022 and 2023 summer driving seasons.
Vilsack indicated that he is confident that the EPA will issue an emergency waiver allowing E15 sales to continue nationwide this summer and said he expects that waiver to be issued in the same timeframe it was the past two years—likely in April. “I am pretty sure they will have the resources and the data necessary to make the decision and have the decision stick,” he said in reference to the emergency waiver.
Sen. Chuck Grassley, R-Iowa, questioned Vilsack on the USDA’s advocacy work related to SAF. Vilsack said he thinks the USDA has two primary roles to play in relation to SAF. The first is to advocate for a rule related to the Inflation Reduction Act tax credit that allows for a broad range of feedstocks, including the traditional feedstocks that are used to biofuels, to qualify for the tax credits and for the incentives. This includes the use of ethanol as a SAF feedstock.
“Part of my responsibility is to articulate the need [and] the science behind that,” Vilsack said. “I think we’ve been successful in getting the GREET model incorporated in this process.” He added that the agency is now in the process of talking about climate smart agriculture, and stressed “we’re going to continue to pound the table on that.”
The second responsibility is for the USDA to provide the science and the data behind the availability of the feedstock, the logistics for the supply chain, and how to accelerate adoption and commercialization of SAF, Vilsack said. He said he was in attendance at the recent opening of LanzaJet’s facility in Georgia and noted that the U.S. has set a goal to produce 36 billion gallons of SAF. The LanzaJet facility is a 10 MMgy plant. “Obviously, we have to accelerate dramatically the commercialization and availability [of SAF],” Vilsack said. “We have to figure out the tools we can use at USDA—our loan programs and so forth—to try to accelerate that.”
Regarding USDA’s advocacy in updating the GREET model, Vilsack said he thinks the people USDA worked with appreciate ethe fact that he is a strong advocate and that the team at USDA is very thoughtful and provides the scientific data to back up what they are saying. He said the agency isn’t just advocating for SAF because it would be good for farmers, USDA is advocating for SAF because the science supports it. He noted that USDA’s advocacy work helped some folks who were skeptical of the GREET model embrace it. The agency is now in the process of educating those folks on climate-smart agriculture so that they understand the benefits of cover crops, efficient fertilizer, no-till, and other things of that nature—and understand that you can calculate the benefits of those climate-smart ag practices and that those benefits should be incorporated into SAF calculations.
Vilsack also touched on the importance of domestically producing SAF feedstocks. “If you can’t domestically produce the feedstocks for this fuel, then you’re going to have to import them,” he said. “Why would be do that?”
A full replay of the hearing is available on the Senate Committee on Agriculture, Nutrition and Forestry website.
Read the original story here.
Feb 23, 2024
Governor Tim Walz today applauded the federal government’s approval of his request to allow year-round sales of E15, beginning in 2025. This decision applies to eight Midwestern states, including Minnesota. The Governor will continue to push for an E15 waiver for 2024 and urges Congress to take action and pass legislation that would fix the issue nationally.
“Providing year-round sales of E15 is the permanent solution that was needed to provide long-term economic relief and certainty in the fuel market. This action means lower emissions and lower-cost choices for drivers,” said Governor Walz. “I’m grateful for the Biden Administration’s shared commitment to increasing consumer access to our nation’s homegrown biofuels – and we will continue to urge the White House to grant a waiver for 2024.”
In April 2022, Governor Walz wrote to EPA Administrator Reagan, requesting a permanent solution allowing the year-round sale of E15.
Read the original statement here.
Feb 27, 2024
By U.S. Rep. Brad Finstad
Last week, the Environmental Protection Agency (EPA) announced the long-overdue decision to allow the year-round sale of higher ethanol blends, such as E15. The good news: the summertime ban on sales of E15 will be lifted in Minnesota, along with 7 other Midwestern states. Unfortunately, due to the Biden Administration dragging their feet, farmers, families, and fuel retailers won’t be able to take advantage of its availability until summer 2025.
According to a recent study conducted by the University of Minnesota, the ethanol industry is a driver for Minnesota’s economy, generating over $6.6 billion in economic activity, and supporting over 200,000 jobs. As many of us in Minnesota know, American-produced ethanol and biofuels like E15 are a more efficient, cost-effective, and cleaner source of energy and promotes competition for businesses.
Last week’s decision by EPA comes nearly two years since eight governors first asked the Biden Administration to open the door for the year-round sale of these fuel options in Minnesota, Iowa, Illinois, Kansas, Nebraska, Missouri, North Dakota, Ohio, South Dakota, and Wisconsin.
The administration ignored that request and allowed the 90-day statutory deadline to pass. In response to their inaction, I led my colleagues in writing not one – but two letters requesting that the EPA and Office of Management and Budget (OMB) act on the request made by the Midwest governors in April of 2022.
In true bureaucratic fashion, it took over 650 days for the EPA to issue a decision regarding the initial request. Due to their inaction, the EPA is delaying the year-round sale of E15 to 2025 – leaving the American people to shoulder the burden of their irresponsibility.
While I’m happy to see a favorable outcome, the decision to delay until 2025 continues to be a disruption for our farmers, producers, and families at the pump.
Minnesota families depend on biofuels like E15 as a low-cost fuel option. Amidst growing inflation and rising gas prices, the White House could lower gas prices immediately by making E15 available for the 2024 summer driving season – yet the administration seems intent on prolonging the strain on family pocketbooks.
To the Minnesotans I represent, E15 is a no-brainer. American-produced ethanol creates jobs, generates markets for agricultural products, and lowers the price at the pump for consumers. The fact that this Administration took nearly two years to come to this conclusion speaks volumes about its misaligned policies on domestic energy production.
In Congress, I will always work toward sensible solutions that lower gas prices while helping to end our reliance on foreign countries for our energy needs, which is why I’ve proudly supported proposals like the Fuel Choice Retailer Act and the Next Generation Fuels Act.
Read the original story here.
More...
Feb 23, 2024
The U.S. Environmental Protection Agency finalized a new rule this week allowing year-round sales of E15, a blend of ethanol and gasoline, at gas pumps across Minnesota and several corn-growing Midwestern states starting next year.
Historically, E15 has been banned during summer months for fears it produces smog. In 2022, the governors of eight states, from the Dakotas east to Ohio, disputed the smog concerns and requested permanent sales of the fuel blend, which is produced partially from corn starch grown by American farmers.
On Thursday, the EPA delivered the governors a favorable ruling. But the agency's effective date isn't until 2025, frustrating farmers and the ethanol industry.
"While this is welcome news," said Brian Werner, executive director of the Minnesota Bio-Fuels Association, "the EPA's delay in finalizing this action means that it won't go into effect until summer 2025, and Minnesotans won't have access to the lowest-cost fuel at the pump this summer."
In announcing the ruling, the EPA described "concerns over insufficient fuel supply" as a reason they'd pushed the effective date back to the summer after next.
In a statement, U.S. Sen. Amy Klobuchar said the use of higher blends in fuel is "good for our farmers, our economy and our national security." The Minnesota Democrat has sponsored a bill with Nebraska Republican Sen. Deb Fischer to bring year-round E15 to the entire country.
Read the original story here.
Feb 19, 2024
As inflationary pressures eased and demand boomed for low-carbon ethanol and its co-products, the ethanol industry’s contribution to the U.S. economy remained strong in 2023, according to an annual economic impact analysis conducted for the Renewable Fuels Association by ABF Economics.
In 2023, more than 72,400 U.S. jobs were directly associated with the ethanol industry, with an additional 322,000 indirect and induced jobs supported across all sectors of the economy. The industry created $32.5 billion in household income and contributed just over $54.2 billion to the nation’s gross domestic product—the second-highest GDP contribution ever. As a result, an estimated $10.4 billion in tax revenue was generated for federal, state and local governments. Returns over operating costs averaged an estimated $0.47 per gallon, almost doubling the average operating margin from 2022, according to the report.
“The U.S. ethanol industry is proud of the enormous contribution it makes to our nation’s economic vitality and environmental well-being,” said RFA President and CEO Geoff Cooper. “After dealing with surging inflation and a global energy crisis in 2022, the ethanol industry saw far more stability in 2023—both in the marketplace and across the policy and regulatory landscape. As we look ahead to new markets and new opportunities, we know the industry’s positive impact on the economy and environment will only continue to expand.”
The 2023 report also shows that the industry spent nearly $39 billion on raw materials, other inputs, and goods and services to produce ethanol last year, with corn purchases alone accounting for nearly $32 billion. The study also provides a breakdown of the industry’s economic impacts in major ethanol-producing states in 2023. Notably, in Iowa, which accounts for roughly one-quarter of U.S. ethanol capacity, the industry supported over 100,000 jobs.
“The ethanol industry continued to make a significant contribution to the economy in terms of GDP, job creation, generation of tax revenue, and displacement of crude oil and petroleum products in 2023,” the report concludes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable. Growth and expansion of the ethanol industry as it applies new technologies and addresses new markets will enhance the industry’s position as the original creator of green jobs and will enable America to make further strides toward reducing greenhouse gas emissions and positively dealing with climate change.”
Read the original story here.
Feb 15, 2024
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN), John Thune (R-SD), and Tammy Duckworth (D-IL), and a group of 40 bipartisan members of Congress, including Senators Baldwin (D-WI), Brown (D-OH), Durbin (D-IL), Ernst (R-IA), Fischer (R-NE), Grassley (R-IA), Marshall (R-KS), Moran (R-KS), Peters (D-MI), Ricketts (R-NE), Rounds (R-SD), Smith (D-MN), and Stabenow (D-MI), as well as Representatives Craig (D-MN), Johnson (R-SD), Pocan (D-WI), Smith (R-NE), Alford (R-MO), Bacon (R-NE), Bost (R-IL), Budzinski (D-IL), Crockett (D-TX), Davids (D-KS), Estes (R-KS), Feenstra (R-IA), Finstad (R-MN), Flood (R-NE), Hinson (R-IA), Kaptur (D-OH), Kelly (D-IL), LaHood (R-IL), LaTurner (R-KS), Miller (R-OH), Miller-Meeks (R-IA), Nunn (R-IA), Panetta (D-CA), Slotkin (D-MI), Sorensen (D-IL), and Van Orden (R-WI) sent a letter urging the Biden Administration to act quickly to ensure that the model used to determine eligibility for Sustainable Aviation Fuel (SAF) tax credits unlocks the potential held by farmers, ethanol producers, and airlines to reduce carbon emissions from aviation.
Specifically, the letter urged the Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG) at the Department of Energy to update the current Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for the SAF tax credit program by the March 1 deadline.
“Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America,” wrote the lawmakers. “As you continue to develop a model to determine eligibility for tax credits under 40B GREET, we ask that you consider the following information to allow every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.
“We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible,” continued the lawmakers. “This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage.”
Klobuchar has long supported legislation to bolster sustainable aviation fuel.
In January 2024, Klobuchar, along with Senators Jerry Moran (R-Kan.), Joni Ernst (R-Iowa), Tammy Duckworth (D-IL.) and Chuck Grassley (R-IA) introduced the Farm to Fly Act. This legislation would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs and allow further growth for alternative fuels to be used in the aviation sector, creating new markets for American farmers.
In June 2023, Klobuchar joined Senators Tammy Duckworth (D-IL), Deb Fischer (R-NE), Joni Ernst (R-IA), and Chuck Grassley (R-IA) in introducing the Sustainable Aviation Fuels Accuracy Act, comprehensive bipartisan legislation to identify the standards required to meet the definition of SAF at the Federal Aviation Administration (FAA).
In June 2021, Klobuchar announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.
In 2021, Klobuchar and Senator 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.
Full text of the letter is available HERE and below:
Dear Members of the Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group (IWG):
We write regarding the implementation of the Department of Energy’s (DOE) updated Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model for sustainable aviation fuel (SAF).
As you know, homegrown SAF has the potential to drive economic growth and create jobs across America. We recognize your recent decision to allow the GREET model to serve as a secondary model for sustainable aviation fuel as a step in the right direction. This announcement has the potential to bring us closer to scaling up domestic production of SAF as America looks to fortify its domestic energy supply and decarbonize the aviation fuels sector. Biofuels drive economic growth, create good-paying manufacturing jobs, and strengthen economies across rural America. As you continue to develop a model to determine eligibility, we ask that you take measures to permit every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.
We request that you adopt the updated GREET model as your methodology for determining this eligibility as soon as possible. We also ask that, in the process of doing so, you adhere to the rigorous science on which the model is based. This will accelerate efforts to decarbonize aviation — in line with the Administration’s stated goals — by accurately crediting emissions reductions from regenerative farming, climate-smart agriculture, and carbon capture and storage.
Specifically, we ask that you make the following commitments:
- The updated GREET model must be completed and implemented by the IWG’s stated deadline of March 1, 2024. Biofuel producers are eager to begin making investments in production capacity. If the modeling update misses this deadline, these investments will remain on hold.
- Any proposed modifications to GREET should be subject to the normal scientific, agency, and public processes. Any modifications to the model must be governed by the latest science at the DOE’s Argonne National Lab, who have been recognized as the leaders in developing models to calculate carbon life-cycle analyses.
- Any modifications must ensure that the model will continue to accurately credit conservation practices and emissions reductions from regenerative farming as well as carbon capture and storage. Exclusion of these factors would omit critical efforts by American farmers to reduce emissions and would represent a missed opportunity to include rural America in the diversification of the aviation fuel sector.
- Ensure that valuations of indirect land-use changes recognize the contributions of American agriculture and reward modern practices like precision agriculture that lead to higher per-acre yields.
While we recognize your ongoing work to support the production of SAF, the actions above are crucial for ensuring the long-term stability and growth of this field. We stand ready to work with you to implement the updated GREET model as soon as possible, which will unleash the full potential of domestic SAF production and ensure American farmers can fuel the future.
Thank you for your attention to this important issue.
Read the original press release here.
By National Corn Growers Association
Feb 9, 2024
A letter signed by 3,466 farmers from across the country was sent to President Biden on Feb. 7 expressing concern that his administration is taking a short-sighted approach to addressing climate change by prioritizing the use of electric vehicles over biofuels, such as corn ethanol, as it works to drastically lower the nation’s greenhouse gas emissions.
“If we are going to address climate change and meet our sustainability goals, we are going to have to take a multi-pronged approach, that includes tapping into higher levels of biofuels, such as corn ethanol, which offers an immediate climate solution,” the letter said.
The letter, which drew thousands of signatures in less than a week, comes as the U.S. Environmental Protection Agency prepares to release its light- and medium-duty vehicle tailpipe emissions standards for 2027-2032. To help meet the standards, the president has set a goal that 50% of all vehicle sales will be electric by 2030. A similar rulemaking is also being considered through the National Highway Traffic Safety Administration.
A recent survey, sponsored by the National Corn Growers Association and conducted by Morning Consult, showed that Americans have concerns on a range of issues involving electric vehicles, including the accessibility of charging stations, and an overwhelming majority say vehicles that are compatible with biofuels should remain available to consumers.
In January, thousands of auto dealers from across the country signed on to a similar letter to the president noting that electric vehicles were not selling quickly and were piling up on dealer lots.In the most recent letter, the farmers said it could take years before EVs become popular with consumers, which means the administration must expand its focus and efforts to address GHGs with solutions that are available now.
“As a low-carbon, clean energy source and an affordable, homegrown fuel, ethanol serves as a critical pathway for agriculture and rural America to contribute to a sustainable future,” the letter noted. “We hope you will join us in fully embracing this technology as we all do our best to fight the causes and effects of climate change.
”The letter noted that California, one of the most prominent states in the push for electrification has spent years at the forefront of the transition to EVs, spending enormous political capital and billions of dollars to encourage its citizens to embrace these vehicles. Yet, by the end of 2022, only 2.6% of the state’s light-duty vehicles were electrified.
Gas stations nationwide currently carry fuel with at least 10% ethanol blends, though selling higher blends of ethanol through the summer months currently requires a waiver by EPA.
Corn growers have urged Congress to pass legislation that would allow for higher levels of ethanol blends year-round. NCGA is also pushing to advance the Next Generation Fuels Act, which would lower fuel prices, reduce carbon emissions and help shore-up America’s energy security.
Read the original story here.
Feb 7, 2024
U.S. fuel ethanol production was up more than 4% the week ending Feb. 2, according to data released by the U.S. Energy Information Administration on Feb. 7. Stocks of fuel ethanol were up 2% and exports fell by 43%
Fuel ethanol production averaged 1.033 million barrels per day the week ending Feb. 2, up 42,000 barrels per day when compared to the 991,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Feb. 2 was up 33,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 24.779 million barrels the week ending Feb. 2, up 509,000 barrels when compared to the 24.27 million barrels reported for the previous week. When compared to the same week of last year, stocks for the week ending Feb. 2 were up 362,000 barrels.
Exports of fuel ethanol averaged 78,000 barrels per day the week ending Feb. 2, down 59,000 barrels per day when compared to the 137,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2023 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Feb. 2.
Read the original story here.
Feb 8, 2024
According to new statistical reports released today by the Renewable Fuels Association, the value of the U.S. ethanol industry’s exports soared to a record level of just over $7.1 billion in 2023. Ethanol export volumes strengthened to 1.43 billion gallons in 2023, the third-highest level on record. Meanwhile, distillers grains shipments registered at 10.8 million metric tons, slightly down from 2022.
For more than a decade, RFA’s annual trade summaries have provided industry advocates, policymakers, news media, and the public with the latest data and analysis, demonstrating the importance of U.S. ethanol and distillers grains to the world market.
“Exports represent a crucially important value-added market opportunity for U.S. ethanol producers and the farmers who supply feedstock to our industry,” said RFA President and CEO Geoff Cooper. “We exported one out of every 10 gallons of ethanol produced in the United States last year, along with one out of every three tons of distillers grains. The industry’s export sales made a remarkably positive contribution to the U.S. trade balance, while boosting farm incomes across rural America. As countries around the globe embrace ethanol as a low-cost solution for improving air quality and reducing carbon emissions, RFA will continue to pursue and protect free and fair trade opportunities.”
As detailed in the ethanol trade summary report, the 1.43 billion gallons exported in 2023 represented an increase of 9 percent over 2022 and the highest volume since 2019. The value of U.S. ethanol exports surged to $3.82 billion, a record high. Shipments to Canada set an annual record for a single destination, tallying almost 640 million gallons. The United Kingdom, European Union, South Korea, India and Colombia also were sizable markets.
U.S. imports of fuel ethanol plunged to 21 million gallons in 2023, the lowest level in more than a decade. The U.S. remained a net exporter for the 14th consecutive year, as imports accounted for only 0.1 percent of domestic consumption. Net exports of 1.41 billion gallons were the second-highest ever, trailing 1.60 billion gallons in 2018.
The second trade summary report released today covers co-product exports, including distillers grains, a high-protein feed ingredient for livestock and poultry. Distillers grains exports totaled 10.81 million metric tons in 2023, representing 30 percent of domestic production. Export volumes were slightly lower than 2022, as was their value, at $3.3 billion.
The U.S. supplied distillers grains to more than 50 countries via 26 domestic ports and exit points. Mexico remained the top export market with a 20 percent share, followed by South Korea and Vietnam and Indonesia. Turkey and Morocco were the largest growth markets in 2023, with increases of 48 percent and 39 percent, respectively, compared to 2022.
Printed copies of these analyses will be available to attendees at RFA’s upcoming National Ethanol Conference in San Diego, Calif.
Read the original story here.
Feb 1, 2024
Novozymes on Feb. 1 released unaudited results for 2023, reporting that bioenergy sales were up approximately 23% last year. The company, which on Jan. 29 merged with Chr. Hansen to form Novonesis, is expected to release full audited results on Feb. 8
According to the company, bioenergy sales were up 20% in the fourth quarter when compared to the same three-month period of 2022. Bioenergy sales for the full year 2023 were up 23% when compared to 2022.
Novozymes attributed the strong performance in bioenergy sales to continued penetration in the broad and innovative solutions toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a favorable market environment. In particular, the company said the North American market experienced strong developments supported by a favorable market environment and roughly a 2 percent increase in U.S. ethanol production.
Performance was also strong outside of North America, driven by innovation as well as capacity expansion of corn-based ethanol production in Latin America. Growth was also supported by solutions for biodiesel production and sales of enzymes used in second-generation biofuel production. In addition, pricing had a positive impact on growth, Novozymes said.
Bioenergy sales accounted for 25% of total sales last year, according to Novozymes. The company’s household care; food, beverage and human health; grain and tech processing; and agriculture, animal health and nutrition segments accounted for 28%, 22%, 13% and 12% of 2023 sales.
Overall, Novozymes reported a 6% percent increase in sales for the fourth quarter, and 5% growth for the full year. A full copy of the company’s announcement is available on its website.
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Jan 31, 2024
U.S. fuel ethanol production was up more than 21% the week ending Jan. 26 after falling to nearly a three-year low the previous week, according to data released by the U.S. Energy Information Administration on Jan. 31. Stocks of fuel ethanol were down 6% and exports were up 13%.
Fuel ethanol production averaged 991,000 barrels per day the week ending Jan. 26, up 173,000 barrels per day when compared to the 818,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Jan. 26 was down 37,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 24.27 million barrels the week ending Jan. 26, down 1.545 million barrels when compared to the 25.815 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Jan. 26 were down 172,000 barrels.
Exports of fuel ethanol averaged 137,000 barrels per day the week ending Jan. 26, up 16,000 barrels per day when compared to the 121,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2023 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Jan. 26.
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