In the News

Ethanol Producer Magazine

Jan 29, 2024

by GROWTH ENERGY

Growth Energy, the nation’s largest biofuel trade association, released updated data today showing that American drivers recently surpassed a massive milestone: 100 billion miles driven on affordable, homegrown  E15 fuel.

The 15-percent biofuel blend is saving motorists nationwide an  average  of up to 15 cents per gallon at the pump. In some states, amid heightened fuel costs this past summer, drivers saw E15 savings climb as high as 60 cents per gallon.

“At Growth Energy, we are proud to lead the charge on American-made, plant-based fuels,” said CEO Emily Skor. “Homegrown biofuels deliver value for consumers at the pump, value for American agriculture and rural communities, and value for our nation’s climate goals. We’re proud of the 100 billion miles driven on E15 and excited that consumers have access to an affordable, earth-friendly option to fuel their travels.”

Despite the widespread use of E15 to power light-duty vehicles, this fuel blend is only available for sale nine months of the year. Outdated regulations prevent it from being sold during the summer without the issuance of an emergency waiver each year from the U.S. Environmental Protection Agency (EPA). Skor used today’s news about 100 billion miles driven on this fuel to urge lawmakers to find a federal legislative solution that provides for the unrestricted sale of E15 in every state, all year long.

“There aren’t very many products on the market today that allow consumers to both save money and lower their carbon emissions at the same time. E15 is one of them,” she added. “We need a permanent fix to ensure retailers can continue to offer this fuel option and consumers can continue to rely on it to quickly and easily lower their fuel costs and shrink their carbon footprint.”

About E15

E15 is a fuel blend made of gasoline and 15% bioethanol. The U.S. Environmental Protection Agency (EPA) has  approved  its use in all cars, trucks, and sport utility vehicles (SUVs) made in model year 2001 and newer—representing more than 96% of all vehicles on the road today. E15 can be found at over 3,400 gas stations in 31 states and is legal for sale in every state except California. Last summer drivers saved an average of 15 cents per gallon by filling up with E15 compared to regular, or E10. In some areas, E15 saved drivers as much as $.60 per gallon at the pump.

Learn more about E15  here.

Read the original story here.

Senator Jerry Moran

Jan 22, 2024

WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), Amy Klobuchar (D-Minn.) and Joni Ernst (R-Iowa) today introduced legislation that would help accelerate the production and development of sustainable aviation fuel (SAF) through existing U.S. Department of Agriculture (USDA) programs to allow further growth for alternative fuels to be used in the aviation sector and create new markets for American farmers.

The Farm to Fly Act would utilize current USDA programs to support the development of SAF, clarify federal definitions for SAF and enable greater collaboration between USDA and the private sector.

“Sustainable aviation fuel is a promising alternative fuel source that can provide new markets for farmers while increasing our domestic energy production and security,” said Sen. Moran. “This legislation would increase the accessibility of biofuel for commercial use and directly support rural America and its farmers, the agriculture industry and the aviation sector.”

“Alternative energies like sustainable aviation fuel create jobs in rural areas, bolster our national security, and reduce carbon emissions from air travel,” said Sen. Klobuchar. “This bipartisan bill with Senators Moran and Ernst will be another step forward in securing new markets for domestically produced biofuel.” 

“As we work toward energy independence, the U.S. Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model will play a key role in allowing homegrown, Iowa biofuel to meet the needs of the U.S. aviation industry while also creating new markets for biofuel producers,” said Sen. Ernst. “An investment in the development of sustainable aviation fuel is an investment in our national security, our environment, and our farmers.”

Companion legislation was introduced in the House of Representatives by Reps. Max Miller (R-Ohio), Nikki Budzinski (D-Ill), Angie Craig (D-Minn), Jasmine Crockett (D-Texas), Randy Feenstra (R-Iowa), Brad Finstad (R-Minn), Mike Flood (R-Neb) and Ashley Hinson (R-Iowa).

This legislation is also supported by a number of aviation, agriculture and energy leaders.

“The Kansas Corn Growers Association supports Senator Moran’s continued leadership in Sustainable Aviation Fuel with the Farm to Fly Act,” said Brent Rogers, President of the Kansas Corn Growers Association. “Corn-based ethanol can play a key role in Sustainable Aviation Fuel, and this legislation solidifies and strengthens our ongoing efforts with airline companies. Ethanol-based SAF would be a game-changer for corn and ethanol producers and the farm economy.”

"The National Sorghum Producers thank Senator Moran for the effort behind this legislation and the recognition that changes need to be within current law to allow flexibility for commodities to participate in the renewable fuels sector,” said Craig Meeker, Chairman of the National Sorghum Producers. “We look forward to working with Senator Moran and the Senate Agriculture leadership on a final product in the Farm Bill."  

“America’s farmers are well-positioned to supply sustainable agriculture feedstocks that will help scale production of the sustainable aviation fuel in demand by airlines today,” said Lindsay Fitzgerald, Vice President of Government Relations at Gevo. “The Farm to Fly Act recognizes agriculture is key to enabling cleaner flight, including using a data-driven tool to account for the benefits of farmers’ production practices with the Argonne GREET model. Gevo thanks Senators Jerry Moran, Amy Klobuchar and Joni Ernst for their leadership and supports this legislation that affirms the role of farmers in growing these new fuels.”

“The path to decarbonizing the skies runs right through America’s heartland,” said Emily Skor, Growth Energy CEO. “The Farm to Fly Act would allow our farmers to drive a wave of new investment in sustainable aviation fuel (SAF). We thank Senators Moran, Klobuchar and Ernst for introducing this important legislation in the Senate and urge all lawmakers to get behind a bill that would position America as a leader in SAF and create new jobs in America’s rural communities.”

“RFA strongly supports the Farm to Fly Act, and we truly appreciate Sen. Moran—along with cosponsors Sens. Klobuchar and Ernst—and their effort to move forward this important legislation that creates more clarity and stability around the development of sustainable aviation fuels (SAF) made from U.S. crops,” said Geoff Cooper, President & CEO, Renewable Fuels Association. “This bill helps position SAF for takeoff by ensuring the best available science and modeling tools are used to calculate the carbon benefits of homegrown renewable fuels.”

“Increased partnership with the agriculture sector is imperative as the aviation industry works to increase production of cost-competitive sustainable aviation fuels. Airlines for America greatly appreciates Senators Moran, Klobuchar and Ernst’s leadership on this issue. This bill has a companion in the House, signaling the strong bipartisan, bicameral support for SAF development and expansion.” – Airlines for America

The Farm to Fly Act would:

  • Clarify eligibility for SAF within current USDA Bio-Energy Programs, expanding markets for American agricultural crops through aviation bioenergy;
  • Provide for greater collaboration for aviation biofuels throughout USDA agency mission areas, increasing private sector partnerships; and
  • Affirm a common definition of SAF for USDA purposes, as widely supported by industry to enable U.S. crops to most effectively contribute to aviation renewable fuels.

Read the original press release here

Ethanol Producer Magazine

Jan 15, 2024

The International Energy Agency released a new report on Jan. 11, Renewables 2023, predicting that global biofuel demand will expand by 38 billion liters (10.4 billion gallons) between 2023 and 2028. 

In the report, the IEA predicts that total biofuel demand will increase 23 percent to 200 billion liters by 2028. Renewable diesel and ethanol are expected to account for two-thirds of that growth, with biodiesel and biobased sustainable aviation fuel (SAF) accounting for the remainder.

Most of the new biofuel demand over the next five years is expected to come from emerging economies, particularly Brazil, Indonesia and India. Ethanol and biodiesel use is expected to expand the most in these regions. Renewable diesel and biobased SAF are expected to be the primary growth segments in advanced economies, including the U.S., European Union, Canada and Japan. 

According to the IEA, renewable diesel and biobased SAF consumption are expected to expand by 18 billion liters through 2028. The U.S. and Europe are expected to account for 80 percent of that increase. 

Ethanol and biodiesel are expected to expand by 13 percent over the next five years, with growth in emerging economies offsetting declines in advanced ones. The report predicts that European ethanol demand is expected to rise slightly through 2028, but that that increase will be offset by declines in the U.S. where gasoline use is expected to shrink. Biodiesel consumption is expected to expand in Brazil and Indonesia. The U.S. and Europe are expected to remain major biodiesel markets during the next five years, accounting for more than one-third of global biodiesel demand in 2028. Renewable diesel, however, is expected to capture new growth in demand due to its superior blending properties.

The IEA predicts that more than 60 percent of global biofuel demand and production growth over the next five years will take place in Brazil, Indonesia, India and Malaysia. Across these countries, ethanol use is expected to increase by 13 billion liters through 2028, with biodiesel consumption increasing by 8 billion liters. That projected growth accounts for nearly all expected expansion in emerging economies over the next five years. 

Globally, biobased SAF use is expected to expand by nearly 5 billion liters through 2028, making up nearly 1 percent of global jet fuel supplies. The U.S., Europe and Japan are at the forefront of that expected growth. 

In addition to these baseline predictions, the IEA’s report also outlines forecasts associated with the agency’s “accelerated case” in which stronger policy drivers and other factors could lead to significantly higher biofuel consumption. 

Read the original story here

United States Department of Agriculture

Jan 11, 2024

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that  USDA is awarding $19 million in grants to U.S. business owners  to increase the availability of domestic biofuels in 22 states and give Americans cleaner, more affordable fuel options at gas station pumps as part of President Biden’s Bidenomics agenda to lower costs and invest in America.

Blending ethanol into gasoline has helped reduce fuel costs by approximately 25 percent, contributing to falling gas prices across the country. Gas prices are now under $2.99 in more than half of U.S. states and saving the average driver more than $100 per month relative to peak prices. HBIIP increases the number of Americans that benefit from falling prices by expanding the use of ethanol-based fuels at gas stations around the nation.

The Department is making the awards through the  Higher Blends Infrastructure Incentive Program  (HBIIP), made possible with funding from President Biden’s  Inflation Reduction Act.

“President Biden’s Inflation Reduction Act is giving people in rural areas the historic opportunity to expand clean energy and build an economy that benefits working families,” Vilsack said. “By increasing the supply of biofuels made here in the U.S., we are strengthening our energy independence, lowering costs for American families, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities.”

Secretary Vilsack made today’s announcement during his visit to the Iowa Renewable Fuels Summit in Altoona. Secretary Vilsack was awarded the  Lifetime Champion of Renewable Fuels Award  by the Iowa Renewable Fuels Association during the Summit.

Through this most recent tranche of awards, business owners are receiving $19 million to expand access to domestic biofuels in 22 states and strengthen America’s energy independence. For example:

  • Casey’s will use a $5 million grant to install ethanol blend fuel dispensers at 111 fueling stations in Iowa, Illinois, Minnesota, Nebraska and South Dakota. Using these investments, the company aims to increase the amount of biofuels it supplies by 50 million gallons a year.
  • Piasa Enterprises Inc. in Illinois will use a $200,000 grant to install two 30,000-gallon biodiesel storage tanks and associated piping at their Hartford fuel distribution center. The company projects an increase in the amount of biodiesel sold by 2 million gallons per year.
  • In Maryland, AC&T Inc. will install two ethanol fuel dispensers and one ethanol storage tank. Through this project, AC&T owners aim to expand the amount of ethanol they supply by over 106,000 gallons a year.

The full list of states to receive funding is: Arizona, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, South Dakota, Texas and Wisconsin.

Since the start of the Biden-Harris Administration, USDA has invested more than $96 million nationwide to increase access to biofuels at fueling stations. $11.6 million of this has been invested in Iowa.

Background: Higher Blends Infrastructure Incentive Program

The  Higher Blends Infrastructure Incentive Program  (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, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. Expanding the availability of homegrown biofuels strengthens energy independence, creates new revenue for American businesses and brings good-paying jobs to rural communities.

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. That same month, USDA also announced the first round of Inflation Reduction Act-funded HBIIP awardees.

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. There are three quarterly application windows left, and the program ends Sept. 30, 2024. The next application deadline is March 31, 2024.

For more information, go to the  HBIIP webpage.

Background: Inflation Reduction Act

This announcement is part of President Biden’s  Investing in America agenda  to grow the American economy from the middle out and bottom up by rebuilding our nation’s infrastructure, driving over $640 billion in private-sector manufacturing investments, creating good-paying jobs and building a clean-energy economy to tackle the climate crisis and make our communities more resilient.

The Biden-Harris Administration championed the Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis, a key pillar of Bidenomics and part of the Investing in America agenda. Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America. The Act provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions.

For more information on the Inflation Reduction Act, visit:  www.rd.usda.gov/inflation-reduction-act.

Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit  www.rd.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit  www.usda.gov.

Read the original press release here.

Ethanol Producer Magazine

Jan 10, 2024

The U.S. Energy Information Administration increased both its estimate of 2023 fuel ethanol production and forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released Jan. 9. 

The EIA currently estimates that U.S. ethanol production averaged 1.02 million barrels per day in 2023, up from last month’s forecast of 1.01 million barrels per day. The agency also increased its forecast for 2024 fuel ethanol production to 1.02 million barrels per day, up from the forecast of 1 million barrels per day included in its December STEO. In addition, the January STEO includes the EIA’s first short-term forecast for 2025, with the agency predicting fuel ethanol production will continue to average 1.02 million barrels per day next year. 

On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first quarter of this year, falling to 1.01 million barrels per day in the second and third quarters, and expanding to 1.03 million barrels per day in the fourth quarter. Moving into 2025, fuel ethanol production is currently expected to average 1.02 million barrels per day in the first and second quarters, 1.01 million barrels per day in the third quarter, and 1.04 million barrels per day in the fourth quarter. Fuel ethanol production averaged 1.05 million barrels per day in the final quarter of 2023.

The EIA maintained both its estimate that fuel ethanol blending averaged 930,000 barrels per day in 2023 and that fuel ethanol blending will continue to average 390,000 barrels per day in 2024. The agency currently predicts fuel ethanol blending will expand to 940,000 barrels per day in 2025.

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Renewable Fuels Association

Jan 9, 2024

U.S. ethanol exports dipped 1% to a robust 115.9 million gallons (mg). Canada was our largest destination for the 32nd consecutive month despite a 23% drop in volume. Shipments totaled 50.0 mg (of which 91% was denatured), accounting for 43% of global sales. The U.S. exported 22.6 mg to Colombia (up from essentially zero), which is a record high for that market. India imported 13.5 mg (a -1% decline) while the European Union (down 54%) and United Kingdom (down 39%) each imported 7.7 mg. Virtually all remaining ethanol exports landed in South Korea (3.8 mg, -37%), Mexico (3.4 mg, -33%), Jamaica (3.3 mg, a 6-fold increase), Peru (2.9 mg, -50%), and Singapore (0.8 mg, +47%). Brazil again was notably absent from the market. Ethanol exports through November 2023 totaled 1.27 billion gallons, 3% ahead of the same period in 2022.

The U.S. imported 3.3 mg of undenatured ethanol from Brazil and minimal volumes of denatured ethanol from South Africa. Total ethanol imports through November 2023 totaled 20.6 mg, 73% less than the same period in 2022.

Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slowed 7% to 829,911 metric tons (mt)—the lowest volume since April. Shipments landing in our top ten largest customers were mixed but up 3% overall, while a cumulative decline across our smaller markets (-44%) pulled down the November total. Mexico was our largest destination for the 17th consecutive month with exports of 177,724 mt. Still, this was an 8% decrease from October and a 6-month low. Other larger importers included South Korea (108,922 mt, +42%), Vietnam (101,389 mt, -16%), Indonesia (83,558 mt, +26%), Canada (78,341 mt, - 16% decline), Colombia (52,365 mt, quadrupled to an 11-month high) and China (33,189 mt, +9% to a 22-month high). DDGS exports through November 2023 totaled 9.82 million mt, lagging 3% behind the same period in 2022.

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Ethanol Producer Magazine

Dec 28, 2023

U.S. fuel ethanol production was up 3 percent the week ending Dec. 22, according to data released by the U.S. Energy Information Administration on Dec. 28. Stocks of fuel ethanol were also up 3 percent, while exports were down 33 percent. 

Fuel ethanol production averaged 1.107 million barrels per day the week ending Dec. 22, up 36,000 barrels per day when compared to the 1.071 million barrels per day of production reported for the previous week, and the highest level of production reported since October 2021. When compared to the same week of last year, production for the week ending Dec. 22 was up 144,000 barrels per day. 

Weekly ending stocks of fuel ethanol for the reached 23.517 million barrels the week ending Dec. 22, up 611,000 barrels when compared to the 22.906 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Dec. 22 were up 1.119 million barrels.

Fuel ethanol exports averaged 132,000 barrels per day the week ending Dec. 22, down 64,000 barrels per day when compared to the 196,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. No fuel ethanol imports were reported for the week ending Dec. 22.

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Ethanol Proucer Magazine

Dec 21, 2023

CoBank’s Knowledge Exchange on Dec. 14 released a report focused on forces that will shape the U.S. rural economy next year. The report predicts that both ethanol producers and soybean crushers will benefit from rising demand for biofuels in 2024. 

“The biofuel sector at large carries the momentum of historically large profit margins into the new year,” CoBank wrote in the report. With renewable identification number (RIN) prices declining, selling renewable diesel outside of the California market is expected to be less profitable. Ethanol margins are expected to remain comparatively healthy in 2024 due to a combination of affordable natural gas prices and corn prices that are under pressure from a record harvest and weak export demand. 

A slowing global economy and surplus of energy on the work market is currently depressing fuel and ethanol prices. The risk of conflict spreading in the Middle East and disrupting supply lines among oil-exporting countries could result in a global energy shock and surge in fuel and ethanol prices, according to the report. 

The report also notes that the booming renewable diesel industry combined with the shorter U.S. soybean crop harvest of 2023 will drive an expansion of soybean acreage in the U.S. next year, reducing available acreage for other crops. Soybean planted acreage is currently expected to be up 4 percent when compared to 2023, at 87 million acres. Corn acreage is expected to fall 4 percent to 91 million acres. 

A full copy of the report is available on the CoBank website.

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