In the News
By Jacqui Fatka
CoBank Farm Supply and Biofuels Lead Economist
Dec 31, 2024
The biofuels sector embarks on 2025 facing several headwinds from political and regulatory uncertainty, while tailwinds could continue from strong exports and higher biofuel mandates from countries around the world.
Renewable diesel (RD) expansion, driven by California’s Low Carbon Fuel Standard, and the world’s growing appetite for ethanol boost the biofuels outlook in 2025. The U.S. Energy Information Administration projects a modest increase in biofuel production over the course of the year, although ethanol supplies will maintain 2024 production levels of 1.05 million barrels per day (b/d). Biodiesel supplies will drop nominally, while renewable diesel will increase from 210,000 b/d to 230,000 b/d (figure). Renewable naphtha and renewable propane are byproducts of a growing RD industry, helping double production of “other biofuels.”
How the incoming administration and Republican-controlled House and Senate finalizes the Inflation Reduction Act’s Clean Fuel Production Tax credit—45Z—will be a major driver of expanded biofuel production with lower emissions. The completion of regulations that account for climate-smart agricultural practices and adequately reward corn and soybean producers will be the lynchpin for future revenue opportunities. Ethanol producers have the most to gain if lower carbon intensity corn can help plants qualify for the 45Z tax credit.
Year-round E15 adoption can see a renewed push under the incoming Trump administration and offset some of the reduced domestic ethanol gasoline consumption due to lower consumer use, as well as the presence of more electric and hybrid vehicles on the road. The shift to E15 from E10 can provide cost savings for consumers but will face logistical challenges of blending and distributing another grade of gasoline as retailers will need to update infrastructure. Ethanol producer margins turned lower in 2024 as excess capacity came online, and it may take much of 2025, or possibly longer, to better align capacity with demand.
U.S. ethanol exports set new records in 2024 with Canada as the top destination. USDA anticipates 2025 ethanol exports to reach $4.2 billion in value, tying the 2023 record value. Falling ethanol export unit values may slightly offset higher volumes, likely hitting above last year’s record of 1.8 billion gallons. Private estimates indicate ethanol exports could surpass 2 billion gal/yr. Expanded renewable blending requirements around the world help build global demand. Indonesia is working toward instituting a 5% blend of fuel ethanol into gasoline for retail use (E5) in 2025, while Vietnam is expanding is current E5 mandate.
The impact of potential tariffs on world trading partners and retaliatory tariffs on U.S. agricultural products, including ethanol and DDGs, could limit ethanol export growth. Brazil’s increasing corn production supported the country’s own domestic growth of corn ethanol facilities, which may increase ethanol competition in the world market.
Statutorily, the U.S. Environmental Protection Agency was to propose new renewable volume obligations in the Renewable Fuels Standard last November, but the Biden administration chose to punt that until 2025. The incoming administration is not apt to quickly propose new 2026-2029 RVO levels but will instead wait, making decisions on pending small refinery exemptions (SREs) first. During the previous Trump term, EPA granted 34 SREs from the 2017 compliance year. Under the Biden administration, the EPA did not approve any SREs and instead denied 79 requests. Now the EPA will need to reevaluate those earlier denials and more, totaling 129 exemption petitions from 2018 and later.
The biodiesel industry criticized EPA for setting the 2023-2025 RVO biomass-based diesel (BBD) levels too low and underestimating the capacity potential from the industry’s $6 billion capacity expansion investments. In 2023, domestic and imported feedstocks supported the production of 4.3 billion gallons of BBD, which surpassed the yearly renewable volume targets for 2023, 2024 and 2025. In 2024, additional blending of soy oil and imported tallow and used cooking oil (UCO) pushed levels above mandated volumes. Soy oil could recapture blending market share if tariffs or regulatory action limit the imports of UCO and tallow, as well as the domestic build out of renewable fuels in China and Brazil where these imported oils originate. China already eliminated its 13% export tax rebate for UCO which will incentivize more Chinese use of its UCO supplies rather than export.
Renewable diesel production capacity will grow just 100 million gallons from 2024 to 2025, reach a total of 5.2 billion and remain steady through 2026, according to an updated analysis from University of Illinois. Despite the recent boom in RD production and a predicted expansion of 20% or more per year, the latest outlook reveals the industry is temporarily plateauing. Beyond the RVO mandates, California and other states’ low carbon fuel programs encourage the continued shift from conventional diesel to RD. California’s 20% limit on vegetable oil feedstocks in its low carbon fuel standard puts downward pressure on the use of soy and canola oil in RD production.
Federal and state tax incentives and low carbon fuel policies will drive the future viability of sustainable aviation fuel (SAF) as most hydrotreated esters and fatty acids (HEFA) plants today can produce either RD or SAF based on market economics. Alcohol-to-jet SAFl has the potential to expand in the longer term, but small pilot and pre-pilot projects will provide minimal supplies in 2025. Airlines including United, Delta and Southwest secured a small amount of domestically produced SAF to fuel planes, but costs remain two to three times as expensive when compared to conventional airline fuel. EIA projects SAF production to expand to 50,000 b/d in 2025 if all announced capacity additions come online. However, today’s SAF use domestically, including some imported fuel, represents a drop in the bucket of the total domestic aviation fuel market.
The promise of SAF may not be realized in the near term, despite the need to continue to find a new demand base to support struggling corn and soybean prices domestically. Potential expansion of SAF is limited by a short tax credit runway for the 45Z, as well as delayed regulatory guidance and uncertain political actions. Illinois’ $1.50 tax credit incentive for SAF limit soy oil’s use but makes the state a potential hub for SAF growth.
Read the original story here
Dec 18, 2024
WASHINGTON - Today, Senator Amy Klobuchar was chosen to serve as the ranking member on the Senate Committee on Agriculture, Nutrition, and Forestry. Senator Klobuchar has been a member of the Agriculture Committee since her first term in Congress, working to pass three Farm Bills and successfully leading bills that have strengthened the safety net for Minnesota farmers and ranchers, invested in conservation programs, and supported homegrown energy.
“When I first came to the Senate, my number-one request was to be on the Agriculture Committee. I wanted to work on behalf of Minnesota’s farmers, make sure Americans could feed their families, and boost our rural economy. From working across the aisle to strengthen our defenses against animal disease outbreaks to bolstering our ability to produce home-grown fuel and supporting conservation efforts, the work of the Agriculture Committee touches every aspect of our lives. I look forward to working with Chairman Boozman and Representatives Craig and G.T. Thompson to pass a strong farm bill.”
Read the original press release here.
Dec 17, 2024
Rep. Angie Craig (D-MN) was elected Tuesday to serve as Ranking Member of the House Committee on Agriculture, replacing David Scott of Georgia.
“I just won my D+1 district by nearly 14 points because my farmers and rural constituents know that I’ll meet them where they’re at, I’ll listen to their concerns and I’ll work with whoever I can to improve their lives,” said Craig in a statement. “My focus will be on improving people’s lives – not scoring political points. We can lower food and energy costs for consumers. We can strengthen the farm safety net and open the doors of opportunity to new and beginning farmers. And we can ensure that nutrition assistance programs are available for the Americans who need them.”
Agriculture groups were quick to praise Rep. Craig. “Rep. Craig has been a close ally of farmers in general and fierce advocate of corn growers in particular. We are thrilled by this development and look forward to working with her in the year ahead as we advance legislation important to our growers,” said National Corn Growers Association president Kenneth Hartman.
Rep. Craig has been a strong advocate for ethanol and has been consistently working toward year-round E15 nationwide by promoting legislation such as the Consumer and Fuel Retailer Choice Act.
Read the original story here.
The U.S. Energy Information Administration maintained its forecasts for 2024 and 2025 fuel ethanol production and exports in its latest Short-Term Energy Outlook, released Dec. 10. The outlook for 2024 ethanol blending was revised down.
The EIA has maintained its forecast that fuel ethanol production will average 1.05 million barrels per day in both 2024 and 2025, up from 1.02 million barrels per day last year. On a quarterly basis, fuel ethanol production is currently expected to average 1.07 million barrels per day during the final quarter of 2024. Moving into 2025, production is expected to average 1.05 million barrels per day during the first quarter, 1.04 million barrels per day during the second quarter, 1.05 million barrels per day during the third quarter, and 1.07 million barrels per day during the fourth quarter.
Net imports of fuel ethanol are expected to average -12,000 barrels per day this year and next year. Both forecasts were maintained from the November STEO. Net imports of fuel ethanol averaged -9,000 barrels per day in 2023.
The EIA lowered its forecast for 2024 fuel ethanol blending to 920,000 barrels per day, down from last month’s outlook of 930,000 barrels per day. The agency has maintained its forecast that fuel ethanol blending will average 930,000 barrels per day next year. Fuel ethanol blending averaged 930,000 barrels per day last year.
Read the original story here.
Dec 10, 2024
World Agricultural Supply and Demand Estimates report, released Dec. 10. The forecast for season-average corn prices was unchanged.
The current 2024-’25 U.S. corn outlook is for greater corn used for ethanol, larger exports and lower ending stocks.
The USDA increased its forecast for corn use in ethanol to 5.5 billion bushels, up from last month’s forecast of 5.45 billion bushels. The increase is based on recent data from the agency’s Grain Crushings and Co-Products Production report and weekly ethanol production data as reported by the U.S. Energy Information Administration for the month of November. The USDA said these data imply corn used for ethanol during the September to November quarter was the highest since 2017. Corn use for fuel ethanol production was at 5.478 billion bushels for 2023-’24 and at 5.176 billion bushels for 2022-’23.
The USDA also increased its outlook for corn exports by 150 million bushels to 2.5 billion, reflecting the pace of sales and shipments to date. With no other use changes, corn ending stocks are reduced 200 million bushels to 1.7 billion. The season-average corn price received by producers is unchanged at $4.10 per bushel.
Globally, the outlook for foreign corn production is cut with declines for the European Union, Mexico, and Indonesia partially offset by an increase for Ukraine. EU corn production is down reflecting reductions for Italy, Romania, Croatia, and Austria that are partially offset by increases for Poland, Spain and France. Mexico corn production is reduced reflecting lower winter corn area expectations.
Corn exports for 2024-’25 are raised for the U.S. and Canada but lowered for the EU. Corn imports are higher for Bangladesh, the EU, Iran and Mexico but cut for China. Foreign corn ending stocks are reduced based on declines for China, the EU and Indonesia. Global corn stocks, at 296.4 million tons, are down 7.7 million.
Read the original story here.
Dec 2, 2024
Ethanol producers are always striving for the next level and developing their plant’s process to its full potential. Novonesis, the company born out of a merger between Novozymes and Denmark-based bioscience company, Chr. Hansen, continually innovates and identifies products to assist producers in their pursuit of ever-improving yields and process efficiency. Innova® Eclipse, Novonesis’ new yeast strain, offers the benefits of the company’s yield and robustness platforms, explains Tom Kortuem, head of sales, Bioenergy for Novonesis in North America.
Innova Eclipse offers a 1-2% increase in ethanol yields, while reducing glycerol up to 40% compared to their leading yeasts, Innova Apex and Innova Quantum.
“I think the key differentiator is trying to squeeze out that extra ethanol,” says Amanda Moser, senior research and development manager with Novonesis. “Modifying the yeast ensuring we maintain the robustness we know our customers want and demand, while also reducing glycerol by utilizing that carbon for ethanol yield instead.”
It is all about getting the most of what you want out of the process—ethanol—and the least of what you don’t want — glycerol and organic acids — while achieving “fast fermentation kinetics,” explains Moser. Innova Eclipse is a fast-fermenting yeast, reducing overall fermentation times by up to 18% and offering higher throughput potential.
This yeast does not demand producers adjust their process to maximize its potential, but rather works well with however the plant is run. “We’re not saying, ‘you have to run this way in order to make our yeast work,’” Moser says. “We’re saying, ‘let our yeast work in your plant the way you want to run your plant.’ Because we know ethanol producers are different, and we know that they have their own processes and their own needs for their customer base, they have customers that they’re serving as well.
Customer centricity drives everything Novonesis does, she explains, and an early stage of each project is devoted to ensuring the product is something that fulfills customers’ needs or addresses problems producers are facing. Prior to launch, Novonesis ran Innova Eclipse through multiple trials at different ethanol plants.
“Ethanol producers are prioritizing efficiency, which plays a key role in achieving a lower carbon intensity score. Innova Eclipse can assist in this regard by reducing the amount of water needed for the process by enabling the fermentation to run with higher solids throughput,” explains Kortuem.
“When you look at producers today, they are trying to maximize the capital in their plants and trying to produce as much ethanol as possible and not be bound by the one thing in the plant which isn’t mechanical or capital related, it’s the biologics,” says Kortuem. “And yeast is that limiting factor from a biological standpoint in the plant. We want to make sure that biology isn’t a limitation [on] what the producers are able to achieve in the plant.”
Read the original story here.
Dec 3, 2024
The USDA on Nov. 26 confirmed its forecast that fiscal year (FY) 2025 ethanol exports will set a record in terms of volume. The expected value of those ethanol exports, however, was reduced, according to the agency’s latest quarterly trade outlook.
The USDA said its forecast for FY 2025 ethanol exports is lowered by $100 million to $4.2 billion, but still tying last year’s record. The ethanol export unit value may fall slightly following corn prices but is offset by slightly higher volumes just above last year’s record 1.8 billion gallons.
Little change in sales is expected for the current top export markets of Canada, the U.K., the European Union, India and Colombia. The USDA said this is due to modest, if any, change in ethanol blending for the U.K. and Canada’s Ontario and Quebec provinces, somewhat lower prices across Europe, some recovery in the supply of India’s ethanol molasses feedstock as well as continued use of broken grains and corn in India’s ethanol production, and the expectation that recovery in Colombia’s blending rate is largely complete. The USDA also noted that Bazil’s 18% import duty on ethanol will continue to weigh on the U.S. ethanol export opportunity to that market.
A full copy of the quarterly trade outlook is available on the USDA website.
Read the original story here.
Nov 20, 2024
CEDAR RAPIDS, Iowa – Fluid Quip Technologies (FQT) is pleased to announce that the São Martinho Boa Vista unit in Quirinópolis, Goiás, Brazil is exceeding projected performance including capacity and ethanol output.
The São Martinho plant utilizes FQT’s proprietary corn ethanol technologies, from corn receiving to DDGS drying. FQT integrated its Low Energy Distillation (LED)™ system and a Mechanical Vapor Recompression (MVR) system to achieve one of the lowest steam usage rates in the bioethanol industry while using low pressure steam from the São Martinho cogeneration turbines. The unit also utilizes FQT’s patented Selective Grind Technology™, Fiber ByPass™, and BOS Oil System™ which has allowed São Martinho to achieve ethanol and distillers corn oil yields among the highest in the industry.
“São Martinho saw the need for a low pressure and low energy distillation system allowing for a substantial reduction in energy usage, due to limitations on steam generation capacity and biomass availability,” said John Kwik, Executive Vice President of Fluid Quip Technologies. “This was a first of a kind distillation system operating at 1.5 bar making anhydrous ethanol, so we worked together to make the necessary adjustments that allowed the FQT engineering team to achieve the goals of maximizing ethanol and corn oil yields and substantially reducing energy usage. This is a real technology disruptor for the South American ethanol market.”
“The FQT designed distillation system has allowed us to get a very low steam usage, avoiding the need of investment on steam generation or additional biomass acquisition,” said Agenor Pavan, Chief Operations Officer at Sao Martinho. “We accomplished a plant that utilizes the latest ethanol technology for corn and have designed features and systems to integrate it into our existing cane unit to make the most thermically efficient cane and corn ethanol facility. The output capacity and yield of ethanol we are achieving with FQT are above the designed levels.”
São Martinho is a high-performing plant that has both cane and corn ethanol producing approximately 200 million liters of ethanol per year from corn. FQT provided the technology package, process engineering, procurement of key equipment, startup support, and training for this project.
About Fluid Quip Technologies
Fluid Quip Technologies® (FQT) is a premier technology and process engineering firm based in Cedar Rapids, Iowa. FQT’s skilled engineering and technical teams have been developing new technologies and providing unique process engineering solutions to the beverage, biofuels and bio-chemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.
About São Martinho
São Martinho is one of the largest sugar and ethanol groups in Brazil, reference in agricultural and industrial management, with approximate crushing capacity of 27 million tons per crop year, comprising of 24.5 million tons of sugarcane and 2.5 million tons of corn equivalent (500 thousand tons of corn), and a maximum mechanized harvesting rate of 100%. São Martinho has a unique logistics platform for product distribution, high storage capacity and proximity to key highway and rail systems, including its own rail branch. A publicly held corporation since 2007, its shares trade on the Novo Mercado, the listing segment of the B3 with the highest corporate governance standards, under the ticker SMTO3. For more information, visit: www.saomartinho.com.br
Read the original press release here.
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Nov 7, 2024
2024 has been a strong year for the ethanol industry.
Minnesota Biofuels Association executive director Brian Werner says ethanol stakeholders are in a position of strength.
“We’ve seen great production numbers, we’ve seen great exports. Exports to Canada and other places around the world have really been strong, so I think overall it’s been a great year.”
He tells Brownfield a concern for ethanol plants in Minnesota going into next year is low corn yields.
“Because of a lot of the rain and the flooding we had that some of those numbers are down. So we certainly in working with our feedstock growers have some concern about the way the agricultural economy is heading.”
He says Congress passing a nationwide E15 standard is a priority for 2025.
Brownfield interviewed Werner Thursday at the Minnesota AgriGrowth Ag and Food Summit in Minneapolis.
Read the original story here
Nov 5, 2024
The U.S. exported 148.49 million gallons of ethanol and 1.01 million metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 5. Exports of ethanol were up, while exports of distillers grains were down slightly.
The 148.49 million gallons of ethanol exported in September was up when compared to both the 141.12 million gallons exported the previous month and the 119.77 million gallons exported in September of last year.
The U.S. exported ethanol to nearly three dozen countries in September. Canada was the top destination for U.S. ethanol exports during the month at 64.87 million gallons, followed by the U.K. at 21.14 million gallons and the Netherlands at 16.93 million gallons.
The value of U.S. ethanol exports reached $378.94 million in September, up from both $320.29 million in August and $317.86 million in September 2023.
Total U.S. ethanol exports for the first nine months of this year reached 1.39 billion gallons at value of $3.18 billion, compared to 1.02 billion gallons exported during the same period of last year at a value of $2.82 billion.
The 1.01 million metric tons of distillers grains exported in September was down when compared to both the 1.12 million metric tons exported in August and the 1.03 million metric tons exported in September 2023.
The U.S. exported distillers grains to approximately 36 countries in September. Mexico was the top destination for U.S. distillers grains exports at 178,206 metric tons, followed by South Korea at 137,591 metric tons and Turkey at 119,542 metric tons.
The value of U.S. distillers grains exports fell to $242.15 million in September, down from both $285.57 million the previous month and $286.9 million in September of last year.
Total distillers grains exports for the first three quarters of 2024 reached nearly 9.1 million metric tons at a value of $2.41 billion, compared to 8.05 million metric tons exported during the same period of 2023 at a value of $2.53 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Oct 29, 2024
Whitefox Technologies is pleased to announce the successful installation of the Whitefox ICE® XL membrane dehydration system at Western Plains Energy LLC ethanol plant in Oakley, Kansas. Whitefox is at the forefront of advanced dehydration technology, and this is the first installation in the USA of the new ICE® XL membrane solution.
The solution enables Western Plains to achieve:
• 50% reduction in natural gas and steam;
• 25% increase in production capacity;
• Reduction in operational costs.
Together, this significantly advances Western Plains towards Net Zero by reducing their carbon intensity score by more than a 10% reduction.
Derek Peine, [CEO, Western Plains Energy] commented, “The Whitefox ICE® XL system is a fully integrated solution within our distillation, dehydration and evaporation (DD&E) unit operations. It fully replaces the molecular sieves, with a proprietary membrane system, providing continuous processing and reduced energy and water consumption. It is designed to allow us to reduce our steam usage by up to 50%, which is a big step towards our net zero carbon goal.”
Gillian Harrison, Whitefox’s CEO commented, “The project has embodied the true spirit of collaboration. Western Plains had the vision to be a Net Zero producer in 2019, and together with our engineers, have created ultra-low energy ethanol. This project has been an international endeavour to drive down emissions in renewable fuels and support advancements in rural communities with funding from the USDA and Innovate UK.
I’m proud of what we have achieved and believe it’s a ground-breaking step towards renewable ethanol becoming an essential low-carbon building block for sustainable aviation fuel, green chemicals and beyond.
This project is the first ICE XL project in the US, but Whitefox’s 18th project, with a further 5 in construction. As we continue to expand, this installation represents a milestone in sustainable innovation in ethanol production.
Western Plains and Whitefox are proving that Net Zero are not just words but a commercial and environmental reality.”
ABOUT WESTERN PLAINS ENERGY
Western Plains Energy, LLC. is renewable energy production company in Oakley, Kansas. The company converts regionally grown grain into sustainable, low-carbon products in the form of denatured ethanol and wet distillers’ grains. Western Plains Energy is committed to meeting the growing demand for domestically produced, sustainable renewable energy.
ABOUT WHITEFOX TECHNOLOGIES LIMITED
Whitefox specializes in technology development and innovation based on its proprietary membrane solutions. Whitefox’s solutions use membrane-based cartridge technology which enables clients to produce ethanol and other chemicals to the highest market standards in the most energy and water efficient way. With a small carbon footprint, Whitefox provides solutions for all types of organic solvents, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.
Read the original press release here.
Oct 16, 2024
The Clean Fuel Production tax credit was included in the 2022 Inflation Reduction Act and is meant to incentivize the production of clean fuels, like ethanol and sustainable aviation fuel. Minnesota Biofuels Association Executive Director Brian Werner said the guidelines for these tax incentives are scheduled to be released by the beginning of the year. “It’s really challenging to make investments or get capital financing for these investments at the (ethanol) plants that will reduce the carbon intensity of the finished ethanol if we don’t know what the guidance is and we don’t know what the rules of the road are going to be yet.” To secure the carbon emission reductions from the farm level, the government is now demanding an all-or-nothing bundled approach. “You have to do no-till, cover crops and efficient nitrogen fertilizer, all three of those practices on the same acreage and that’s not workable for a lot of Minnesota farmers.”
Read the original story here.
Oct 14, 2024
Average U.S. ethanol plant earnings are currently stable and expected to continue the same trajectory, according to CoBank’s latest Quarterly Research Report, released Oct. 10. Production levels and exports are expected to remain high.
According to the report, U.S. ethanol plants are currently coming off seasonal high runs with near-record volumes corn going to fuel ethanol production this summer. Many facilities completed maintenance shutdowns in August and are now ready to take advantage of this fall’s bumper corn harvest to keep production climbing, CoBank continued.
Moving into the fourth quarter, CoBank said it expects ethanol margins to benefit from lower corn and natural gas prices. Improved corn oil extraction rates will also boost revenue.
Ethanol exports hit a new record during 2024 marketing year and are continuing to grow. Marketing year 2025 began Sept. 1, and CoBank currently expects ethanol exports to reach a record 2 billion gallons at a value of $4.3 billion. The report, however, cautions that the growth of corn ethanol production in Brazil could create more ethanol export competition in the future. According to CoBank, Brazil’s ethanol production has increased 41%, reaching 15.85 billion gallons per year, with a nameplate capacity of 18 billion gallons per year. The country now has 22 corn ethanol plants, which consume approximately 15% of domestic corn production.
A full copy of the report is available on CoBank’s website.
Read the original story here.
Oct 9, 2024
Northbrook, Illinois – CTE Global, a provider of effective yeast and enzymatic strategies for the production of biofuels introduces Innova Eclipse yeast to its portfolio. Innova Eclipse uses the most advanced technologies to push past fermentation limits, significantly reducing glycerol levels and increasing ethanol yields. This yeast is designed to help biorefineries maximize their production goals by using fast fermentation kinetics, giving the opportunity and flexibility for reduced fermentation time. It has a robust stress tolerance, which allows for consistent and reliable operations.
“We are pleased to offer this revolutionary new yeast to the biofuel industry,” said Alex Shifman, President and CEO of CTE Global. “Innova Eclipse not only enhances bioethanol production but also aligns with CTE Global’s focus to provide the most innovative products and services to our customers. Our team looks forward to assisting biorefineries realize the potential this yeast can bring to their processes and bottom line.”
Innova Eclipse is part of the Innova® family brand of yeasts, known for providing the highest level of performance. It is one of the many yeast and enzyme solutions offered by CTE Global, who is continually innovating and optimizing its product portfolio to meet the needs of the biofuel industry. For more information, visit cte-global.com.
Contact: Kim Trinchet, Marketing Director
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Oct 1, 2024
Since James Lenz’s Sept. 29 commentary, “Yes, it’s time to rethink ethanol,” called out the organization I lead by name, I feel compelled to respond. And while we disagree with almost every one of Lenz’s arguments, he got one thing essentially right: The Renewable Fuels Association will always defend ethanol against baseless attacks and misinformation.
As a former adjunct professor and someone involved in “industrial research and development,” Lenz certainly failed to do his homework for this assignment. He says “hundreds” of academic studies have assessed the downside of ethanol, yet he can only point to the same debunked study cited in Karen Tolkkinen’s Sept. 1 column, “The time is ripe to rethink ethanol.” That study, which incidentally was funded by the Washington, D.C.-based National Wildlife Federation, was roundly criticized by numerous academic institutions, including Harvard, Purdue University, the University of Illinois, Tufts University and Department of Energy laboratories.
Lenz goes on to argue that ethanol has displaced Minnesota cropland that previously produced “edible foods such as pulse crops,” then contradicts himself by correctly noting that ethanol has “little to do with food security.” In reality, the number of Minnesota farms growing pulses increased between 2007 (the year Congress adopted the existing Renewable Fuel Standard) and 2022 (the latest year for which USDA data is available). Land dedicated to dry edible beans in Minnesota, by far the largest pulse crop, jumped 45% between 2007 and 2022, while production doubled. The amount of land and number of farms growing berries also increased over this period. Here’s a spreadsheet documenting the changes in the state.
Meanwhile, land dedicated to growing field corn (the type used for ethanol) in Minnesota fell slightly from 2007 to 2022 and the number of farms growing corn dropped by 20%. Nevertheless, Minnesota’s corn production grew 30% over this period due to new technology and greater efficiency — something Lenz apparently seems to think is a bad thing. The data also disprove Lenz’s argument that more corn production means more chemicals and fertilizers. Today’s farmers use less fertilizer and chemicals than they did in the early 1980s, yet produce almost twice as much grain per acre.
Lenz correctly noted that farmers get defensive when ethanol is attacked or, to use his term, “questioned.” But it’s not because they are “caught up in Big Ag’s vicious production monopoly,” as he asserts. It’s because they are sick and tired of the outright lies being told by uninformed elitists about growth in renewable fuels and its positive impact on agriculture.
It’s time for the people to have a conversation about ethanol, Lenz says. On that point, we agree. Ethanol producers and our partners in agriculture always welcome discussions that are grounded facts, data and science. Let’s talk.
Geoff Cooper is president and CEO of the Missouri-based Renewable Fuels Association.
Read the original letter here.
Sep 30, 2024
U.S. ethanol capacity expanded in July, while renewable diesel capacity fell and biodiesel capacity held steady, according to data released by the U.S. Energy Information Administration on Sept. 30. Feedstock consumption was up when compared to both the previous month and July 2023.
Ethanol capacity expanded to 18.307 billion gallons in July, up 104 MMgy when compared to the previous month and up 600 MMgy when compared to July of last year.
Biodiesel capacity was at 2.022 billion gallons per year in July, a level maintained since May. When compared July 2023, biodiesel capacity was down 62 MMgy.
Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, fell to 4.598 billion gallons per year in July, down 299 MMgy when compared to June, but up 892 MMgy when compared to July of last year.
Total U.S. operable biofuels capacity was at 24.927 billion gallons per year in July, down 195 MMgy when compared to the previous month, but up 1.432 billion gallons per year when compared to July 2023.
U.S. biofuel producers consumed approximately 30.698 billion pounds of feedstock in July, up from 28.584 billion pounds the previous month and 28.667 billion pounds in July 2023. The consumption of feedstocks commonly used to produce ethanol in July was up significantly when compared to both the previous month and July of last year. The consumption feedstocks commonly used to produce biobased diesel fuels was also up when compared to both June and July 2023.
Biofuel producers consumed 27.097 billion pounds of corn in July, up from 24.984 billion pounds in June and 25.493 billion pounds in July of last year. Grain sorghum consumption was at 137 million pounds in July, up from 129 million pounds the previous month, but down when compared to the 255 million pounds consumed in July 2023.
Biofuel producers consumed 1.139 billion pounds of soybean oil in July, including 642 million pounds consumed by biodiesel plants and 497 million pounds consumed by renewable diesel facilities. Soybean oil consumption was at 1.267 billion pounds in June, including 578 million pounds consumed at biodiesel plants and 689 million pounds consumed at renewable diesel facilities, and at 1.273 billion pounds in July of last year, including 679 million pounds consumed by biodiesel producers and 594 million pounds consumed at renewable diesel plants.
A total of 546 million pounds of canola oil was used to produce biofuel in July, including 139 million pounds consumed by biodiesel plants and 407 million pounds consumed at renewable diesel facilities. Canola oil consumption was at 386 million pounds in June, with 162 million pounds of that volume going to biodiesel production and 224 million pounds going to renewable diesel production, and at 296 million pounds in July, with biodiesel consumption at 164 million pounds and renewable diesel consumption at 132 million pounds.
U.S. biofuel producers also consumed 349 million pounds of corn oil in July, with 85 million pounds of that volume going to biodiesel production and 264 million pounds used to produce renewable diesel. Corn oil consumption was at 403 million pounds in June, with 80 million pounds consumed by biodiesel plants and 324 million pounds consumed by renewable diesel facilities. Corn oil consumption was at 359 million pounds in July of last year, with 89 million pounds going to biodiesel production and 270 million pounds consumed by renewable diesel facilities.
Biofuel producers consumed 665 million pounds of beef tallow, 657 million pounds of yellow grease, 68 million pounds of white grease, 23 million pounds of poultry fat and 19 million pounds of other waste oil, fats and greases in July. Consumption was at 567 million pounds, 714 million pounds, 57 million pounds, 21 million pounds, and 18 million pounds, respectively, in June, and at 367 million pounds, 481 million pounds, 66 million pounds, 9 million pounds and 13 million pounds, respectively, in July 2023.
The EIA withheld data on the consumption of agricultural and forestry residues, other agricultural and forestry products, other vegetable oils, other recycled feeds and wastes, and other biofuel feedstocks not elsewhere specified or identified to avoid disclosure of individual company data.
Additional data is available on the EIA website.
Read the original story here.