In the News
Sep 7, 2023
U.S. ethanol production capacity increased by 18 MMgy between Jan. 1, 2022, and Jan. 1, 2023, despite five fewer production facilities being in existence, according to data released by the U.S. Energy Information Administration in August.
The EIA data indicates the U.S. had 187 ethanol plants as the beginning of this year, down from 192 reported for the same time last year.
Petroleum Administration for Defense District (PADD) 2, which is located in the Midwest, contains the highest number of ethanol plants at 173, down from 177 last year. PADD 1, located along the East Coast, has three facilities, unchanged from last year. PADD 3, located along the Gulf Coast, also has three ethanol plants, while PADD 4, the Rocky Mountain Region, has four ethanol plants, both unchanged from 2022. The number of facilities in PADD 5, which includes the West Coast, dropped from five in 2022 to four in 2023.
Total ethanol plant capacity was at 17.663 billion gallons per year as of Jan. 1 of this year, up from 17.38 billion gallons per year at the same time of 2022. Capacity in PADD 2 increased by 323 MMgy, while capacity in PADD 4 increased by 20 MMgy and capacity in PADD 5 fell by 60 MMgy. Capacity was unchanged in PADD 1 and PADD 3.
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Sept 6, 2023
U.S. ethanol exports lifted 1% to a 3-month high of 113.4 million gallons (mg). Canada was our largest destination for the 28th consecutive month with a whopping 55% of global sales. A record 62.6 mg (bolstered by 58 mg in denatured ethanol)—a 23% month-over-month leap—was the fourth-largest single month U.S. exports purchased by any country. Essentially all remaining gallons were distributed to nine markets, including the United Kingdom (up 23% to 16.7 mg), South Korea (up 5% to 10.7 mg), the European Union (down 55% to 7.1 mg), Colombia (down 22% to 4.3 mg), and Mexico (down 6% to 3.9 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 818.3 mg.
For the seventh consecutive month, the U.S. did not register any meaningful imports of foreign ethanol.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, totaled 993,018 metric tons (mt) in July. U.S. shippers netted their largest monthly exports in a year with a collective 5% improvement over June. While imports softened 2% to 185,136 mt, Mexico held firmly for the 13th consecutive month as the largest U.S. DDGS market. Exports swung higher in Vietnam (up 11% to 124,184 mt), Indonesia (up 31% to 120,839 mt for a record high), and Turkey (roughly double at 89,859 mt) but scaled back in the European Union (down 9% to 68,879 mt), South Korea (down 26% to 64,888 mt, the lowest monthly volume in more than 3 years), and Canada (down 16% to 59,670 mt). Rounding out our top ten customers in July were Japan (56,371 mt), Morocco (30,041 mt), and Taiwan (24,526 mt). Year-to-date U.S. DDGS exports total 6.11 million mt, which is 9% behind last year at this time.
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Sept 1, 2023
Corn for ethanol use demand improved during July.
The USDA says 454.039 million bushels of corn were used for fuel alcohol production during the month, up 3% from June and 2% from July 2022, with producers encouraged by strong margins and mostly solid demand signals.
Production of distillers dried grains with solubles was 1,784,282 tons, a decline of 1% on the month and 8% on the year.
The USDA says a total of 5.208 billion bushels of corn were used in ethanol production during 2022, 1% more than 2021, while DDGS production was 21,638,356 million tons, 2% less than the previous year.
185 million bushels of soybeans were crushed during July. That was up 10 million bushels from June and 4 million from July 2022, spurred by solid domestic demand and improved export demand as the U.S. fills part of the vacuum left by a smaller crop in Argentina, which is usually the world’s leading soybean product seller.
Crude soybean oil production was 5% higher than the previous month, but less than 1% lower than last year, while soybean meal production was above both a month ago and a year ago.
The USDA’s updated corn for ethanol use and soybean crush projections will be released on Tuesday the 12th at Noon Eastern/11 Central.
The USDA’s updated corn for ethanol use outlook will be released on Tuesday the 12th at Noon Eastern/11 Central.
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Aug 23, 2023
Fluid Quip Technologies (FQT) is pleased to announce that its patented Distillers Corn Oil (DCO) TechnologyTM is achieving record distillers corn oil yields for Ace Ethanol in Stanley, Wisconsin, with increases of over 20% above historical rates.
“Ace Ethanol is a high-performing plant with a cellulosic ethanol system and FQT is excited to announce that our DCO Technology has helped them push their distillers corn oil to their highest yields to date, and among the highest in the industry,” said Michael Franko, Vice President of Fluid Quip Technologies. “Ace has been a long-term customer partner, and these results confirm that the DCO system can achieve significant oil increases at plants with different technologies installed, even those starting with high oil yields already.”
“We are excited to see oil yield increases with the FQT DCO Technology at Ace,” said Neal Kemmet, President of Ace Ethanol. “We have worked hard to keep Ace at the forefront of industry technologies, and we see FQT’s DCO Technology as an integral step in achieving that goal.”
DCO TechnologyTM mechanically separates more oil from whole stillage into the thin stillage stream and then clarifies the stream to reduce fine solids going to evaporation and oil recovery systems. The mechanical separation can reduce the need for additional chemicals or enzymes, helping to lower operational expenses, even while achieving higher distillers corn oil yields.
DCO TechnologyTM is integrated into FQT’s patented Maximized Stillage Co-productsTM (MSCTM) protein systems, making the technology a building block to adding MSC and higher-value protein production in the future.
About Fluid Quip Technologies: Fluid Quip Technologies (FQT) is a global leader providing proprietary technologies and engineering solutions to the food, beverage, biofuel and biochemical production industries. FQT's innovative solutions enhance grain-to-ethanol dry grind processes, create alternative feed products, and cater to the growing demand for carbohydrate feedstocks in the biochemical market.
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Minnesota Department of Agriculture
Aug 22, 2023
Minnesota retail service stations looking to increase access to and sales of motor fuel blends containing at least 15% ethanol are encouraged to apply for funding currently available through the Minnesota Department of Agriculture (MDA).
The Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant Program will award up to $3.335 million in this round of funding to offset the cost of replacing or upgrading current station equipment so it can be certified as compatible with E25 or higher motor fuel blends. Examples of eligible equipment include retail petroleum dispensers and fuel storage tanks.
“As consumer demand for cleaner fuel options continues to grow, the MDA is pleased we can partner with service stations to expand their capacity for higher ethanol blends at the pump,” said MDA Commissioner Thom Petersen. “Biofuels offer an affordable, immediate step to meeting Minnesota’s climate goals, while supporting our farmers and rural economies.”
Applicants may request between $5,000 and $199,000 for an individual project and must commit at least 35% of the total project cost as a cash match. Grants may be expended over a three-year period and must start after mid-January 2024.
Applicants must be a retail petroleum dispenser in Minnesota with no more than 10 sites, regardless of location. Separate applications must be submitted for each site in Minnesota seeking funding.
Additional consideration will be given to businesses owned by women, members of the BIPOC community, veterans, and projects that serve communities of color, Native American tribal communities, socio-economically disadvantaged communities, and communities where access to biofuels is limited.
Funding for this program is made available through a legislative appropriation for the AGRI Program, as well as additional support from Minnesota Corn. The AGRI program administers grants to farmers, agribusinesses, schools, and more throughout Minnesota to advance the state’s agricultural and renewable energy sectors.
Applications must be received by 4 p.m. on Thursday, October 12, 2023, to be considered for funding. Visit the AGRI Biofuels Infrastructure Grant webpage for full eligibility and application details.
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Aug 10, 2023
The U.S. Energy Information Administration maintained its forecasts for 2023 and 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released Aug. 8. The forecast for 2023 ethanol blending was also maintained, but the 2024 blending forecast was revised down.
The EIA currently predicts U.S. fuel ethanol production will average 1 million barrels per day this year and 1.01 million barrels per day next year. Both forecasts were maintained from the July STEO. Fuel ethanol production averaged 1 million barrels per day last year.
On a quarterly basis, the EIA expects fuel ethanol production to average 1.01 million barrels per day during the third quarter of this year, falling to 990,000 barrels per day in the fourth quarter. Moving into 2024, fuel ethanol production is expected to average 1 million barrels per day during the first quarter, 1.01 million barrels per day during the second quarter, 1.02 million barrels per day during the third quarter, and 1.01 million barrels per day during the fourth quarter.
Fuel ethanol blending is currently expected to average 930,000 barrels per day in both 2023 and 2024. In its July STEO, the EIA predicted fuel ethanol blending would average 930,000 barrels per day this year but increase to 940,000 barrels per day next year. Fuel ethanol blending averaged 910,000 barrels per day last year.
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Aug 9, 2023
Whitefox Technologies is pleased to announce that Glacial Lakes Energy LLC has agreed to install the Whitefox ICE® membrane dehydration system at its ethanol plant located in Mina, SD.This is an extremely exciting development for Whitefox as it is our 2ndICE project in South Dakota and will assist Glacial Lakes to increase their production capacity and reduce natural gas consumption and in doing so achieve their business objectives. The installation project is anticipated to be completed during Q2 2024.
Pat Hogan, Director of Operations for Glacial Lakes Energycommented “With a drive towards Net Zero and carbon reduction, GLE extensively reviewed the Whitefox ICE® system for our GLE Mina facility to assist in our carbon reduction goals. As well as reducing energy input into our process, the Whitefox ICE® system will allow us to debottleneck our distillation system to allow for an additional 8 million gallons per year of ethanol production. Whitefox is a great partner to help Glacial Lakes Energy achieve its carbon reduction goals.”
The Whitefox ICE® system treats existing recycle streams to free up and debottleneck distillation-dehydration capacity, enabling Glacial Lakes and other producers 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.
Tony Short, Whitefox Head of Global Sales, commented “In Glacial Lakes we see a committed producer promoting the development of E30 fuel grade ethanol in the US market. We are committed to assisting Glacial Lakes in fulfilling their strategic objectives by installingWhitefox ICE® membrane dehydration system that can increasecapacity while improving the energy efficiency of its Mina, SD plant.”
Whitefox has developed a portfolio of solutions tailored specifically to individualplant’s’needs. Whether producers are looking to increase production capacity or commence their journey towards Net Zero objectives, Whitefox’s range of scalable membrane solutions combines process engineering with membrane expertise to design the optimal solution for industrial producers.
ABOUTGLACIAL LAKES ENERGYLLC.
Glacial Lakes Corn Processors (GLCP) was formed in May 2001 as a South Dakota Cooperative comprised of over 4,000 shareholders. GLCP owns 100% of four ethanol production plants. Glacial Lakes Energy – Mina became operational in June 2008 as a 100 mgy nameplate ethanol production facility, now operating at 145 mgy, located near Mina, SD.
GLE holds an interest of 16% in Granite Falls Energy with combined production of 135 mgy near Granite Falls, MN and Heron Lake, MN, an interest of 8% in Redfield Energy with production of 60 mgy near Redfield, SD, and an interest of 23% in Harvestone Commodities Group, a global ethanol marketing and trading firm. GLE has returned more than $350 million dollars in cash dividends to its Shareholders since its inception.
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
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Aug 9, 2023
Novozymes released second quarter financial results on Aug. 9, reporting a 26 percent increase in bioenergy sales for the three-month period. Overall company sales for the quarter were up 2 percent. For the half year ended June 30, bioenergy sales were up 27 percent and total company sales were up 3 percent.
Novozymes attributed the strong performance of its bioenergy segment during the first half of 2023 to “the continued penetration of the broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a favorable market environment.”
The North American market experienced strong developments despite a roughly 1 percent decrease in U.S. ethanol production during the first half of 2023, according to Novozymes. Performance of the bioenergy segment was also strong outside of North America, driven by innovation, capacity expansion of corn-based ethanol production in Latin America and support by growth in solutions for biodiesel production, the company said.
Novozymes also noted that sales of enzymes used in second-generation biofuels contributed to growth. Overall, growth was positively impacted by pricing, the company continued.
Many of these factors are expected to continue into the second half of the year. Novozymes expects sales growth in bioenergy to be in the mid-teens digits range. This growth is expects to be supported by pricing, market penetration enabled by innovation, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production. The company also expects growth to be supported to a degree by growing sales of solutions for second-generation ethanol production.
Bioenergy accounted for 24 percent of Novozymes total sales during the first half of this year. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 28 percent, 22 percent, 13 percent and 13 percent of sales, respectively.
A full copy of Novozymes second quarter report is available on the company’swebsite.
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Aug 8, 2023
The U.S. exported 111.91 million gallons of ethanol and 949,904 metric tons of distillersgrains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 8. Year-to-date exports of both products are down when compared to the same period of 2022.
The 111.91 million gallons of ethanol exported in June was down slightly when compared to the 113.19 million gallons exported the previous month, but up when compared to the 98.88 million gallons exported in June of last year.
The U.S. exported ethanol to nearly three dozen countries in June. Canada was the top destination for U.S. ethanol exports at 50.81 million gallons, followed by the Netherlands at 15.75 million gallons and the U.K. at 13.54 million gallons.
The value of U.S. ethanol exports fell to $312.82 million in June, down slightly from both $319.41 million in May and $316.26 million in June 2022.
Total U.S. ethanol exports for the first six months of the year reached 704.9 million gallons at a value of $1.92 billion, compared to 795.63 million gallons exported during the same period of 2022 at a value of $2.19 billion.
The 949,904 metric tons of distillers grains exported in June was down when compared to both the 958,385 metric tons exported the previous month and the 1.06 million metric tons exported in June 2022.
The U.S. exported distillers grains to approximately three dozen countries in June. Mexico was the top destination for U.S. distillers grains exports at 189,364 metric tons, followed by Vietnam at 112,176 metric tons and Indonesia at 92,083 metric tons.
The value of U.S. distillers grains exports fell to $304.55 million in June, down from both $319.11 million in May and $326.67 million in June of last year.
Total distillers grains exports for the first half of 2023 reached nearly 5.12 million metric tons at a value of $1.69 billion, compared to 5.7 million metric tons exported during the same period of last year at a value of $1.7 billion.
Additional data is available on the USDA FAS website.
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Jul 26, 2023
The IEA has presented key findings from its new report, Biofuel Policy in Brazil, India and the United States – Insights for the Global Biofuel Alliance. This was done at a special meeting of government ministers who convened at the G20 Energy Transitions Ministerial Meeting, which identified Fuels for the Future as a priority area.
The event in Goa, India, was opened by India’s Minister for Petroleum and Natural Gas Hardeep Singh Puri. More than a dozen energy ministers participated, with representation from Argentina, Bangladesh, Brazil, Canada, India, Italy, Kenya, Mauritius, Paraguay, Seychelles, the United Arab Emirates, Uganda and the United States. The heads of nine international organisations also took part in the event.
The meeting included discussions on India’s proposed Global Biofuel Alliance, which seeks to accelerate sustainable biofuels deployment in support of the global energy transition. Participants acknowledged the critical role sustainable biofuels can play in reducing greenhouse gas emissions.
The IEA estimates that global sustainable biofuels production would need to triple by 2030 to put the world’s energy system on track towards net-zero emissions by 2050. Liquid biofuels provided more than 4% of total transport energy supply in 2022, but their deployment is not accelerating fast enough. Moreover, more than 80% of total biofuel production occurs in just a few countries, despite vast unlocked potential in many parts of the world. Deployment is constrained by challenges such as the availability of the feedstock used to make biofuels, the lack of consensus on sustainability criteria, and the pace at which related technology has been commercialised.
The new IEA report is aimed at guiding the Alliance's efforts to expand biofuel adoption. It suggests that countries can expand sustainable biofuel production and usage by designing long-term strategies, fostering investment, supporting innovation, securing affordable supplies, addressing sustainability concerns promptly, and encouraging international collaboration.
The report outlines three priority areas for the Global Biofuel Alliance to facilitate sustainable deployment in support of the global energy transition:
1. Identifying and helping develop markets with high potential for sustainable biofuels production.
2. Accelerating technology deployment.
3. Seeking consensus on performance-based sustainability assessments and frameworks.
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Jul 31, 2023
Sens. Amy Klobuchar, D-Minn., and Pete Ricketts, R-Neb., on July 27 introduced the Flex Fuel Fairness Act, a bill that aims to provide meaningful incentives for automakers to manufacture flex fuel vehicles (FFVs) in addition to battery electric vehicles.
“The Biden EPA has made a mistake and ignored the proven benefits of flex fuel vehicles that can run higher ethanol blends,” Ricketts said. “Our bill levels the playing field for a proven Nebraska alternative to expensive and burdensome electric vehicles. Nebraskans know biofuels like ethanol are a proven solution that lowers prices for consumers at the pump, is great for our farmers and ranchers, and reduces our dependence on foreign oil.”
The U.S. EPA recently released proposed tailpipe greenhouse gas (GHG) emissions standards for model year (MY) 2027-2032 light-duty vehicles. Once finalized, the proposed standards will require automakers to meet certain tailpipe carbon dioxide emission values, on average, across their fleet of new vehicles. According to information released by Ricketts office, the EPA’s proposed approach for electric vehicles (EVs) assumes that EVs produced by automakers will use only zero-carbon renewable electricity. That approach has been criticized for ignoring the significant GHG emissions associated with critical mineral extraction, EV battery production, and the production and transmission of electricity used to recharge EV batteries. Some estimates indicate the EPA’s proposed standards would require EVs to account for two-thirds of light-duty vehicles within eight years.
The proposed tailpipe emissions rule does not recognize or account for meaningful GHG emissions savings that can be achieved through expanding biofuels use in vehicles designed to accommodate higher blends, including FFVs. According to Ricketts office, for the purpose of determining GHG tailpipe emissions compliance performance values, FFVs capable of operating on E85 should be assumed to operate on E85 all of the time, in line with how EVs are assumed to operate on zero-carbon electricity all of the time. The Flex Fuel Fairness Act aims to ensure that automakers that manufacture FFVs should be allowed to use a compliance tailpipe carbon dioxide emissions value that reflects the lifecycle GHG savings from using E85. For purposes of determining fleet average carbon dioxide standards, the bill would ensure that manufacturers may use a gram-per-mile carbon dioxide value for FFVs that is 31 percent lower than the gram per mile carbon dioxide value for the same vehicle model that is not an FFV.
The Renewable Fuels Association is applauding the bill, stressing it would help level the playing field for FFVs by properly recognizing the emissions benefits associated with the use of E85 flex fuels.
“We thank Senators Klobuchar and Ricketts for introducing the Flex Fuel Fairness Act, which appropriately acknowledges the emissions benefits of FFVs and flex fuels and rewards automakers who continue producing these popular vehicles,” said Geoff Cooper, president and CEO of the RFA. “This legislation helps unlock the potential of renewable fuels and puts more tools in the toolbox for automakers who must comply with increasingly stringent vehicle emissions standards. By leveling the playing field for the production of all clean vehicle technologies, this bill allows low-carbon liquid fuels like ethanol to work alongside clean electricity, electric vehicles, and other technologies to reduce emissions from transportation.”
“If EPA regulations are going to credit EVs for their maximum theoretical carbon emissions benefit, then it stands to reason that the agency should also credit FFVs for their maximum possible carbon emissions benefit,” Cooper added. “This bill would ensure that EPA is being fair and equitable in the way it uses emissions values as policy incentives to stimulate the production of lower-carbon vehicles.”
Growth Energy has also spoken out to welcome the bill, noting it would maximize the benefits of low-carbon biofuels under federal tailpipe standards. “U.S. automakers need flexibility to pursue innovative strategies for decarbonizing light-duty vehicles,” said Emily Skor, CEO of Growth Energy. “This bill would level the playing field, so both electricity and low-carbon biofuels can drive progress toward a net-zero future. We applaud Senators Klobuchar and Ricketts for working to make sure that EPA regulations protect access to cleaner, more affordable transportation options.”
“Higher blends of biofuels offer immediate climate benefits while also reducing emissions of particulate matter, carbon monoxide, and other smog-forming pollutants linked to cancer and other negative health outcomes,” added Skor. “This legislation would put more FFVs on the road and position them to play an even greater role in decarbonizing transportation for decades to come.”
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Jul 26, 2023
U.S. fuel ethanol production was up 2 percent the week ending July 21, according to data released by the U.S. Energy Information Administration on July 26. Stocks of fuel ethanol were up slightly while exports were unchanged from the previous week.
Fuel ethanol production averaged 1.094 million barrels per day the week ending July 21, up 24,000 barrels per day when compared to the 1.07 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending July 21 was up 73,000 barrels per day.
Weekly ending stocks of fuel ethanol reached 23.228 million barrels the week ending July 21, up 62,000 barrels when compared to the 12.166 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 21 were down 100,000 barrels.
Fuel ethanol exports averaged 86,000 barrels per day the week ending July 21, a level that was maintained from 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. According to EIA data, no fuel ethanol imports were reported for the week ending July 21.
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Jul 25, 2023
Archer Daniels Midland Co. released second quarter financial results on July 25, reporting strong results for both ethanol and biodiesel operations. Robust margins for both types of biofuel are expected to continue into the second half of the year.
“Biofuels demand continues to remain strong,” said Juan Luciano, chairman and CEO of ADM, during a second quarter earnings call. “Through the first half of the year, we saw robust margins from biodiesel, strong demand for ethanol and an increasing demand for vegetable oil from renewable green diesel. We expect these trends to continue in the second half.”
Luciano said the new soybean crushing facility under development in Spiritwood, North Dakota, is currently scheduled to begin operations during the fourth quarter of this year. The facility, owned by a joint venture between ADM and Marathon Petroleum, will add 1.5 million metric tons of annual soy crush capacity to ADM’s portfolio and produce low-carbon intensity (CI) for Marathon’s renewable diesel facility in Dickinson, North Dakota. “Projects like this will support growing demand for renewable diesel and sustainable aviation fuel throughout the industry,” he added.
ADM’s Carbohydrates Solutions business segment reported $303 million in operating profit for the second quarter, down from $473 million during the same period of last year. The segment includes the Starches and Sweeteners subsegment, which reported $285 million in operating profit, down from $393 million; and the Vantage Corn Processors subsegment, which reported $18 million in operating profit, down from $80 million.
ADM noted the Carbohydrates Solutions segment delivered strong results, but said results were lower than the record second quarter of last year. The Starches and Sweeteners subsegment includes ethanol production from wet mills. The company said ethanol margins were solid as industry stocks moderated, but were lower than the prior year. Results for the quarter were negatively impacted due to unplanned downtime at one of the company’s corn germ plants. Vantage Corn Processors results were lower due to lower year-over-year ethanol margins. ADM also noted that the second quarter of last year included a one-time $50 million benefit from the USDA Biofuel Producer Recovery Program.
Vikram Luthar, chief financial officer of ADM, said the company is continuing to make progress on its initiatives to decarbonize its Carbohydrates Solutions business, including through its definitive agreement with Tallgrass to capture carbon dioxide from its corn-processing complex in Columbus, Nebraska, and transport it to Wyoming for secure geologic storage. The company’s carbon reduction efforts will allow it to produce low-CI feedstock for use in a variety of applications, such as its joint ventures with LG Chem to produce lactic acid and polylactic acid (PLA).
Overall, ADM reported segment operating profit of $1.53 billion for the second quarter, down from $1.84 billion during the same period of last year. Adjusted segment operating profit was at $1.83 billion, down from $1.85 billion. Earnings per share reached $1.70, down from $2.18. Adjusted earnings per share reached $1.89, down from $2.15.
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Jul 20, 2023
U.S. Grains Council (USGC) leaders, Chairman Josh Miller and President and CEO Ryan LeGrand, traveled to Seoul, South Korea, last week for the 2023 Role of EcoFriendly Fuels in Realizing 2050 Carbon Neutrality symposium. The event was a collaboration between the Council, FAS Seoul, the Korea Automobile Journalists Association (KAJA) and the Korea Biofuels Forum.
The purpose of the symposium was to inform various stakeholders including the Korean government, the petroleum industry and the media about the carbon emission reduction potential of bioethanol and its enhanced effectiveness under a national bioethanol renewable fuel standard (RFS). The symposium also aimed to introduce alcohol-to-jet technology for the production of sustainable aviation fuel (SAF) from bioethanol and provide insights into SAF industry trends.
“We applaud the Korean government for its 2022 announcement to create a Renewable Fuel Standard. This symposium further promotes and actualizes Korea’s goal to implement its Renewable Fuel Standard by 2025, joining many other countries around the world in acknowledging and incorporating bioethanol within their country’s fuel supply chain,” Miller said.
The symposium’s key events included individual presentations by subject matter experts on global bioethanol and SAF policies, life cycle analysis (LCA), vehicle compatibility and infrastructure, prospects of the global automotive industry. Additionally, there was a panel discussion between global bioethanol industry experts and domestic policy officials, emphasizing the necessity of introducing a national bioethanol RFS in South Korea.
“The enthusiasm and excitement surrounding bioethanol consumption within Korea was great to see. A multitude of stakeholders from media, government, automotive, retail, import and refinery level organizations were present and there was robust and substantial engagement throughout the event and in follow-on meetings,” said Mackenzie Boubin, USGC director of global ethanol export development.
Through this program, the Korean government and related industries recognized the carbon-reduction effect of U.S. corn-based bioethanol and its potential as a promising raw material for SAF. This will contribute to the government’s pilot distribution project for a successful automotive RFS introduction and will create an environment that promotes the use of bioethanol for the deployment of alcohol-to-jet technology.
“A significant 480-million-gallon opportunity, the Korean market has been elevated to a tier 1 priority market in 2023 to account for its RFS commitments and on-road bioethanol implementation efforts. USGC will remain engaged on pilot initiatives and best-practice pathways toward nationwide consumption to achieve Korean’s decarbonization objectives,” Boubin said.
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Jul 18, 2023
The U.S. ethanol industry delivered strong second quarter results with steady production and above-average profitability, according to statements made by CoBank in its latest quarterly research report, released July 13.
CoBank said that pretax operating margins for the three-month period averaged 45 cents per gallon through late June, well above the average profit margins of 32 cents per gallon year-to-date and 28 cents per gallon long-term.
Production during the second quarter averaged 15.4 billion gallons annualized vs. 15.2 billion gallons sequentially, which modestly exceeded the five-year average levels, according to the report.
CoBank also discusses expectations for this year’s corn crop within the report. Although the USDA currently forecasts a record large U.S. corn crop at 15.32 billion bushels on expanded acreage, CoBank cautioned that crop conditions across the Central U.S. are below historical averages. Mild temperatures in the Midwest thus far have prevented a faster decline in corn crop conditions, CoBank noted, but said July weather during corn pollination will be key to establishing yield potential.
A full copy of the quarterly report is available on the CoBank website.
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Jul 17, 2023
Vietnam has lowered Most-Favored-Nation tariff rates on ethanol from 15 percent to 10 percent, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The Government of Vietnam issued a decree on May 31 announcing the change. The new rate became effective on July 15, according to the report.
MFN tariff rates will to all of Vietnam’s trading partners with whom the country has no preferential agreements in place. The report indicates that MNF tariff rates apply to the U.S.
According to data published by the USDA FAS, the U.S. exported approximately 2.38 million gallons to Vietnam last year, compared to 6,325 gallons in 2021 and 2.72 million gallons in 2020.
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