In the News
Aug 4, 2022
The U.S. exported 101.48 million gallons of ethanol and 1.01 million metric tons of distillers grains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 4. Exports of both products were up when compared to June 2021.
The 101.48 million gallons of ethanol exported in June was down when compared to the 147.06 million gallons exported in May, which was a four-year high, but up from the 82.09 million gallons exported during the same month of last year.
The U.S. exported ethanol to more than 30 countries in June. Canada was the top destination for U.S. ethanol at 41.2 million gallons, followed by South Korea at 13.64 million gallons and the UK at 12.02 million gallons.
The value of U.S. ethanol exports was at $324.77 million in May, down from $410.39 million the previous month, but up from $187 million in June 2021.
Total U.S. ethanol exports for the first half of 2022 reached 827.39 million gallons at a value of $2.25 billion, compared to 662.62 million gallons exported during the same period of 2021 at a value of $1.27 billion.
The 1.01 million metric tons of distillers grains exported in June was up from both 966,108 metric tons in May and 938,280 metric tons in June 2021.
The U.S. exported distillers grains to approximately three dozen countries in June. Vietnam was the top destination at 197,192 metric tons, followed by Mexico at 158,501 metric tons and Turkey at 109,819 metric tons.
The value of U.S. distillers grains exports was at $311.08 million in June, down slightly from $311.85 million the previous month but up from $248.47 million in June of last year.
Total U.S. distillers grains exports for the first six months of the year reached 5.67 million metric tons at a value of $1.67 billion, compared to 5.4 million metric tons exported during the same period of last year at a value of $1.42 billion.
Additional data is available on the USDA FAS website.
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Aug 2, 2022
On Friday, the California Air Resources Board (CARB) posted the Renewable Fuels Association’s (RFA) and Growth Energy’s joint multimedia evaluation of E15 blends Tier 1 report. The Tier 1 report is a comprehensive review of E15, a 15 percent ethanol blended fuel, and the first step in a three-tiered evaluation process of the fuel blend.
“RFA is pleased to see that CARB has accepted and posted the comprehensive Tier I report on E15’s environmental and public health impacts,” said RFA President and CEO Geoff Cooper. “This is an important milestone in the process to approve the use of E15 in California, meaning the state’s consumers are one step closer to finally accessing lower-cost, lower-carbon liquid fuels. Similar to the recent University of California emissions testing results, the Tier I report demonstrates that E15 reduces emissions and is better for the environment than today’s regular gasoline.”
“CARB’s posting of the Tier 1 report, which includes a wealth of data on the environmental benefits of E15, is an encouraging sign of progress,” said Growth Energy CEO Emily Skor. “As California works to address climate change and air quality challenges and meet its ambitious carbon reduction goals, E15 can help to reduce emissions from cars on the road today and lower prices at the pump. CARB’s posting of the Tier 1 report, paired with its recently released study from University of California-Riverside on the benefits of shifting from E10 to E15, continues the progress toward E15 approval in the state.”
The final Tier 1 report is available here. The University of California-Riverside's study on E15 is available here.
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Jul 27, 2022
RALEIGH, North Carolina — Novozymes introduces Innova® Apex and Innova® Turbo to the Innova platform. Innova Apex and Turbo are tailored to work in specific fermentation times, enabling ethanol producers to maximize their fermentation process to achieve their desired production targets and business goals.
The Innova brand of yeasts can reduce chemical costs by lowering demand for expensive urea by up 90% and eliminating the need for other fermentation aids like nutritional supplements. Innova Apex delivers up to 2% more ethanol and exceptional robustness to stressors while Innova Turbo’s novel metabolism and stress management in high throughput plants increases ethanol yield by 1.5-2%. Apex and Turbo join Innova® Quantum — together these 3 advanced yeasts provide the industry with the highest level of performance and application to production demands and needs.
Built with Innova yeast strain technology, Innova Apex and Innova Turbo tolerate the toughest fermentation stressors, enabling plants to avoid slowdowns and de-risk production. These new yeast strains are built specifically for today’s industrial fermentation conditions helping ethanol producers make the most of their fermentations, consistently liberating the highest levels of ethanol production.
“Since the launch of our Innova platform in 2018, Innova yeasts have become the most sought-after fermentation solution in the industry,” says Rene Garza, Novozymes Region President, NA and VP, Agriculture & Industrial Biosolutions. “Innova Apex and Innova Turbo are the next generation strain technologies to help our ethanol customers continually improve their operations. Innova Apex and Innova Turbo individually provide the most unique and trusted performance, redefining fermentation opportunities in their operational segments. Each unleashes fermentation performance unlike any yeast in the market."
Innova Apex is specifically designed for corn ethanol fermentations that run between 52 and 65 hours, while Innova Turbo is designed for fermentations times of 52 hours or less. Apex and Turbo join Innova Quantum launched in 2021; Quantum is designed for fermentation 65 hours or longer.
Innova® Apex: Power through production challenges
Innova Apex allows ethanol production facilities to push their plants to up to 36% dry solids and reduce glycerol by up to 38%. The advanced yeast solution consistently delivers reliability and production KPIs under the most difficult process conditions, including temperature spikes up to 101º F. This advanced yeast solution can power through common bacterial infections by tolerating up to 0.6% lactic acid and 0.4% acetic acid.
Compared to the previous Innova Force yeast solution, Innova Apex improves ethanol yield by 2% for even more profitability and improved DDGS quality. Additional profits can be gained by using Innova yeast solutions to significantly reduce input costs such as urea and eliminating fermentation aids, while also reducing organizational stress and process complexity. Additional yield and fewer failed fermentations have delivered, on average, up to $1.8 million in profits.
As a drop-in solution, Innova Apex is an easy-to-use solution for ethanol production facilities. The advanced yeast solution has been proven through rigorous laboratory and full-scale plant trials.
Innova Turbo: Higher throughput, higher yield
Innova Turbo offers 1-3% throughput yield gains, 1.5%-2% more ethanol yield in fast fermentations, consistently ferments high solids of more than 35% and is robust to high ethanol concentrations of more than 16%. Ethanol production plants using Innova Turbo during fermentation reduced acetaldehyde off-gas.
This advanced yeast solution powers through tough operating conditions and compounding stressors such as high fermentation temperature excursions plus organic acids from bacterial infections with thermotolerance up to 101o F and up to 0.8% lactic acid and 0.4% acetic acid.
Fast kinetics in Innova Turbo helps ensure ethanol production plants hit production targets while reducing glycerol up to 20% without risk to a facility’s fermentation reliability and consistency. Starting and finishing the fermentation process strong, Innova Turbo drop glucose averages 0.05% in 48-hour fermentations for clean, effective, on-time ethanol production, so operations can avoid work-arounds such as needing more time to finish.
Using Innova Turbo to break bottlenecks that hurt productivity and increased ethanol yield can result in additional profitability. Lower glycerol can aid in dried distiller’s grains (DDGS) handling.
The Innova® Portfolio: Not a one-size-fits-all approach
Innova Apex and Turbo join Innova® Quantum, released in October 2021, which is an advanced yeast solution specifically developed for fermentation times of more than 65 hours and delivers 2-3% more ethanol yield with exceptional robustness. Each product in the Novozymes Innova fermentation solution portfolio has ideal fermentation kinetics specific to each plant’s operational needs, achieved with yeast designed to work in those targeted operating conditions, and not a one-size-fits-all approach. Only Innova yeast solutions allow ethanol producers to significantly reduce urea or eliminate inputs, such as yeast fermentation aids, which can cost plants up to $300,000 annually, all while increasing dry solids for improved production efficiency and powering through tough operational conditions to smooth plant consistency.
All Innova advanced yeast solutions have elite breeding for robustness and advanced enzyme expression, each developed with MicroBioGen breeding technology and Novozymes biological engineering and world-leading enzyme expertise. The Innova yeast portfolio provides the ethanol industry’s most trusted fermentation performance and value.
For more information on Novozymes or Innova yeast solutions, visit biosolutions.novozymes.com.
Read the original press release here.
Jul 27, 2022
Sens. Chuck Grassley, R-Iowa, and Joni Ernst, R-Iowa, on July 26 introduced the Next Generation Fuels Act, which aims to leverage higher-octane fuels to improve engine efficiency and performance.
The bill, S. 4621, was referred to the Senate Committee on Finance. To date, Sens. Amy Klobuchar, D-Minn., and Tammy Duckworth, D-Ill., have signed on to cosponsor the legislation. Similar legislation was introduced in both 2020 and 2021 by Rep. Cindy Axne, D-Iowa. Axne’s bill currently has 26 cosponsors.
The legislation aims to establish high-octane (95 and 98 RON) certification test fuels containing 20-30 percent ethanol, while requiring automobile manufacturers to design and warrant their vehicles for the use of these fuels beginning with model year 2026. Today, the typical octane rating is 91 RON. It also requires sources of the added octane value to reduce carbon emissions by at least 40 percent compared to baseline gasoline, measured using the U.S. Department of Energy’s GREET model.
Other provisions included in the bill address regulatory impediments that have slowed the commercialization of high-octane, low-carbon fuels and the vehicles that consume them. For example, the bill includes provisions that would set a limit on aromatics in gasoline another, ensure that all ethanol blends receive the same Reid vapor pressure (RVP) treatment as E10, and require future vehicles and future retail stations are compatible with higher blends of ethanol.
The Renewable Fuels Association is welcoming introduction of the bill. “We sincerely thank Sen. Grassley, along with Sens. Klobuchar, Ernst, and Duckworth, for introducing the Next Generation Fuels Act in the Senate,” said Geoff Cooper, president and CEO of the RFA. “These lawmakers recognize that Americans will continue to rely on liquid fuels and internal combustion engines for decades to come, and their legislation would ensure consumers have access to more efficient, lower-carbon, lower-cost fuels for their vehicles. This summer’s geopolitical instability, record-high gas prices, and more frequent climate disasters all underscore the need for real and immediate energy solutions for American families. This bill provides those sensible solutions, and we look forward to working with clean fuel supporters in both chambers of Congress to turn this bold vision into a reality.”
Growth Energy is also applauding the introduction of the Next Generation Fuels Act. “The Next Generation Fuels Act represents a clear roadmap for delivering cleaner, more affordable options at the pump for American drivers,” said Emily Skor, CEO of Growth Energy. “With a natural octane of 113, ethanol is the only high-performance, renewable fuel ready to help decarbonize cars on the road today – and with the added benefit of offering consumers significant savings at the pump. We applaud Senators Grassley, Klobuchar, Ernst, and Duckworth for working to promote the use of high-octane, lower-carbon biofuel blends that hold enormous potential for rural America’s role in clean energy production and lowering prices at the pump. We urge swift passage of this legislation as it works to offer both climate solutions and gas price relief to the American people.”
A full-text copy of the bill is available on the Congress.gov website.
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Jul 26, 2022
OMAHA, Neb., Navigator CO2 ("Navigator") announced today the relocation of its corporate headquarters to Omaha, Nebraska and the key addition of Tyler Durhamas as Chief Development Officer and Senior Vice President.
"I'm proud to call Omaha home and eager to continue building our team in the Midwest, which is the heart of our project footprint," said Matt Vining, CEO of Navigator. "Tyler will be an invaluable asset to accelerating our vision for becoming a preeminent carbon handling platform, having technical expertise across multiple aspects of CCUS and success in growth initiatives and corporate investment strategy. His focus will be on accelerating the continued growth of our complementary service offerings, while leading the evaluation of strategic transactions and the many corporate investments currently in front of us. His leadership will increase our speed to market and position us as a key player in the dynamic carbon economy."
Tyler Durham – Chief Development Officer and Senior Vice President
Durham brings over 16 years of experience in the energy sector and corporate venture capital, which included global assignments in Canada, the United States, and the Middle East. He most recently served as Director in Schlumberger New Energy's CCS division, where he led partnership agreements, investment decisions, and integration. Durham holds a Bachelor's in Chemical Engineering from Dalhousie University and an MBA with Honors from the University of Chicago's Booth School of Business.
As Navigator continues the buildout of its team and new Nebraska headquarters, the development of its signature project, Heartland Greenway, continues to make notable advancements in parallel. The proposed system will capture CO2 from more than 30 receipt points, transport it via pipeline, and safely store it underground. The Heartland Greenway will provide biofuel producers and other industrial customers in Illinois, Iowa, Minnesota, Nebraska, and South Dakota with a long-term and cost-effective means to reduce their carbon footprint. Full-scale operations are expected to commence in early 2025.
About Navigator CO2: Navigator CO2 is a company developed and managed by the Navigator Energy Services management team with over 200 years of collective industry experience. The company specializes in CCUS, and the management team has safely constructed and operated over 1,300 miles of new infrastructure since 2012. The company is committed to building and operating its projects to meet and exceed safety requirements while minimizing the collective impact on the environment, landowners, and the public during construction and ongoing operations. Navigator CO2 is headquartered in Omaha, NE at 13333 California St., Suite 202. For more information, visit: navigatorco2.com or heartlandgreenway.com, or visit us on Facebook and Twitter.
Read the original press release here.
Jul 20, 2022
U.S. fuel ethanol production increased by nearly 3 percent the week ending July 15, according to data released by the U.S. Energy Information Administration on July 20. Stocks of fuel ethanol were down slightly.
Fuel ethanol production averaged 1.034 million barrels per day the week ending July 15, up 29,000 barrels per day when compared to the 1.005 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 15 was up 6,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 23.553 million barrels the week ending July 15, down 53,000 barrels when compared to the 23.606 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 15 were up 1.035 million barrels.
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Jul 18, 2022
By Geoff Cooper
It’s been said that “the cure for high prices is … high prices.” In other words, when prices for a product rise to an unbearable level, consumers reduce consumption or stop buying the product altogether. In turn, supplies of the product increase and prices eventually fall.
But in the case of gas prices—which set a new record of $5 per gallon in June—there is a better cure available that won’t force Americans to cancel their daily commutes or abandon summer road trips. At gas stations across the country, the cure for high prices isn’t more high prices—it’s ethanol. Refiners and blenders can lower gas prices for consumers simply by adding more ethanol, which has been $1–$1.50 per gallon cheaper than gasoline for much of the summer.
However, refiners don’t make ethanol and they don’t like the idea of blending more, even though market forces suggest they should. Fortunately, the Biden administration has taken action this summer to compel refiners to increase the availability and use of ethanol—the antidote to record high pump prices.
Back in June, the Environmental Protection Agency took regulatory action to bring order and certainty to the Renewable Fuel Standard, giving our industry a solid foundation to grow production, boost energy security and expand the use of low-carbon renewable fuels. Specifically, EPA set the 2022 blending requirement for conventional renewable fuel at 15.25 billion gallons—the highest ever—and put an end to the abuse of the refinery exemption program.
The Renewable Fuel Standard reduces the price of gasoline in two ways. First, the RFS drives greater usage of ethanol, which is less expensive than petroleum-based gasoline (recently selling at a discount of roughly $1.50 per gallon at the wholesale level). Additionally, RFS compliance credits, known as renewable identification numbers, or RINs, are attached to each gallon of ethanol sold domestically. These are provided free of charge and help offset the blender’s cost of gasoline.
Second, the use of ethanol extends the overall fuel supply and reduces the consumption of petroleum-based gasoline, thereby lowering the demand for crude oil and refined products. In a 2019 study, Dr. Philip Verleger determined that by expanding fuel supplies, the RFS reduced the price of crude oil by $6 per barrel on average from 2015 to 2018. In turn, gasoline prices were reduced by an average of 22 cents per gallon, the equivalent of $250 annually for a typical household.
The EPA and the Biden administration are restoring integrity and stability to the RFS program after several years of mismanagement and abuse by the previous administration. The combination of a strong RVO for 2022, restoration of illegally waived volume from 2016, and a new direction for the small refinery exemption program puts the RFS program on solid footing for the future. We thank Administrator Regan and President Biden for honoring their commitments to implement the RFS in a way that is fair, transparent and focused on growth—giving us a great steppingstone for moving forward in the future.
In addition, President Biden, Regan and USDA Secretary Tom Vilsack worked to ensure lower-cost E15 is available all summer for consumers. Meanwhile, a group of Midwest state governors are also working to make year-round E15 permanent in their states. Summertime E15 will help lower the cost for consumers as they travel this summer and all year long.
Clearly, the cure for high prices at the pump isn’t more high prices. The cure is opening the market to higher volumes of ethanol and spurring competition. RFA will continue to lead and advocate for a larger role for ethanol in the United States fuel supply. We could not be more hopeful for the opportunities in the future as we continue moving forward, and the action we’re seeing from the White House this summer gives us cause for more optimism.
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Jul 14, 2022
The U.S. ethanol industry delivered a very strong second quarter, according to the latest quarterly report issued by CoBank’s Knowledge Exchange on July 14. Ethanol profits and production remain robust despite record gas prices, according to the report.
The ethanol industry experienced few visible signs of demand destruction during the second quarter despite a spike in retail gasoline prices, rising inflation, aggressive Federal Reserve interest rate actions, a significant showdown in the U.S. economy and deteriorating consumer sentiment, according to CoBank.
The report indicates that ethanol production during the second quarter was down slightly when comparted to the first quarter, averaging 15.5 billion gallons on an annualized basis. According to CoBank, second quarter operating margins were at 33 cents per gallon, well above the five-year average of 22 cents per gallon. CoBank said the relatively high margins were driven by a 16 percent increase in fuel ethanol prices, which exceed input costs of corn and natural gas.
U.S. ethanol exports reached a four-year high in April, at 185 million gallons, with sales diversified among several key trading partners. Overall, ethanol exports for the first four months of the year were up 67 percent, according to CoBank. U.S. exports of dried distillers grains (DDGS) were also up during the fourth month period, but at a lower rate of 8 percent. The report also notes that consumer gasoline demand remains stable despite prices that have reached $4.88 per gallon, up from $3.10 per gallon a year ago.
A full copy the CoBank Knowledge Exchange’s latest quarterly report can be downloaded from the company’s website.
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Jul 13, 2022
The U.S. Energy Information Administration increased its forecasts for 2022 and 2023 fuel ethanol production in its latest Short-Term Energy Outlook, released July 13. The forecast for 2023 fuel ethanol consumption was also increased.
The EIA currently predicts fuel ethanol production will average 1.02 million barrels per day in 2022, up from the June STEO forecast of 1 million barrels per day. The agency also increased its forecast for 2023 fuel ethanol production to 1 million barrels per day, up from 990,000 barrels per day forecasted last month. Production averaged 980,000 barrels per day in 2021.
Fuel ethanol production averaged 1.02 million barrels per day in the first quarter of this year, falling to 1.01 million barrels per day in the second quarter. Production during the third quarter is expected to remain at 1.01 million barrels per day before returning to 1.02 million barrels per day in the fourth quarter. Moving into 2023, ethanol production is expected to average 990,000 barrels per day in the first quarter, 1 million barrels per day in the second quarter, 990,000 barrels per day in the third quarter, and 1.02 million barrels per day in the fourth quarter.
Fuel ethanol blending is currently expected to average 910,000 per day in 2022, a forecast maintained from the June STEO, and 920,000 barrels per day in 2023, up from 910,000 barrels per day predicted last month. Fuel ethanol blending was at 910,000 barrels per day in 2021.
According to the EIA, fuel ethanol consumption for the first half of 2022 was up when compared to the same period of last year. The agency said the increase is primarily attributed to more gasoline consumption. Similar levels of gasoline and ethanol consumption are expected for the second half of this year. The EIA currently predicts that fuel ethanol consumption will remain around 2022 levels next year and that the ethanol share of U.S. gasoline consumption will be near 10.3 percent. However, if favorable blend economics for fuel ethanol, driven by lower relative fuel prices, and high RIN prices persist, the fuel ethanol share of gasoline consumption could potentially increase.
The EIA also said consumption of biofuels has risen in the U.S. this year. That growth is expected to continue, according to the agency. Increased demand for transportation fuels, higher 2022 Renewable Fuel Standard blending obligations, and new renewable diesel production capacity coming online all contribute to that expected growth.
The EIA noted that prices for renewable identification numbers (RINs) have increased in 2022, reaching near record-high prices, which has facilitated growing biofuel consumption. When compared to the first half of 2021, ethanol consumption for the first half of 2022 was up 32,000 barrels per day, or 3 percent. During the same period, renewable diesel consumption grew by 32,000 barrels per day, or 46 percent, while the consumption of other biofuels increased by 6,000 barrels per day, or 133 percent. Biodiesel consumption was unchanged, according to the EIA.
The EIA currently predicts that renewable diesel consumption will average 116,000 barrels per day in 2022, up 41,000 barrels per day or 53 percent when compared to last year. Renewable diesel consumption is expected to average 164,000 barrels per day in 2023. The EIA cautioned that that forecast assumes that some of the capacity scheduled to come online in 2022 and 2023 will have delays or be affected by high agricultural feedstock costs.
Because 1 gallon of renewable diesel produces more RIN credits under the RFS than biodiesel and faces no infrastructure or blending constraints, the EIA said it expects new renewable diesel plants to be brought online to secure scarce oil feedstocks, such as soybean oil, outpacing biodiesel refineries and limiting biodiesel production. The agency forecasts biodiesel consumption to increase slightly from 2021 levels this year, but to decrease in 2023 as renewable diesel increasingly satisfies RFS requirements. Biodiesel production for 2022 is expected to fall 8 percent when compared to last year, averaging less than 100,000 barrels per day, the lowest annual average since 2015.
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Jul 12, 2022
The USDA maintained its forecast for 2022-’23 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released July 12. The 2022-’23 corn outlook is for increased supplies and higher ending stocks.
The USDA beginning stocks are raised 25 million bushels, to 1.51 billion bushels, based on reduced feed and residual use for 2021-’22 as indicated in the agency’s June 30 Grain Stocks report. Corn production for 2022-’23 is forecast 45 million bushels higher, at 14.505 billion bushels, based on greater planted and harvested area from the June 30 Acreage report. Projected yield is unchanged at 177 bushels per acre.
The USDA maintained its June forecast that 5.375 billion bushels of corn will go to ethanol production in 2022-’23, flat with 2022-’21. Approximately 5.033 billion bushels of corn went to ethanol production in 2020-’21. The USDA also maintained its June forecasts for feed and residual use, along with food, seed and industrial use.
With no use changes, ending stocks are up 70 million bushels, to 1.47 billion bushels. The season-average farm price received by producers is lowered 10 cents to $6.65 per bushel.
The USDA’s forecast for foreign corn production is down, with reductions for Russia, the European Union and Kenya, partially offset by an increase for Paraguay. Russia corn production is lowered reflecting a cut in area. EU corn production is reduced with a forecast decline for Italy. For 2021-’22, corn production is raised for Paraguay with increases to both area and yield.
Major global trade changes for 2022-’23 include larger corn exports for Paraguay with a reduction for Russia. Corn imports are raised for Zimbabwe. Foreign corn ending stocks are up marginally relative to last month. Global corn stocks, at 313 million tons, are up 2.5 million tons relative to last month.
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Jul 11, 2022
The ethanol industry is hopeful of a final win soon on a permanent fix for restricted summertime E15 sales. The House has already acted as part of a package of livestock competition bills to permanently allow summertime E15 sales that received a Biden waiver just for this summer.
Now, Renewable Fuels Association chief Geoff Cooper says it’s up to the Senate to act.
“We are expecting that the Senate is going to give those provisions a very hard look if they decide to try to do something before the August recess,” he said.
The Senate Ag Committee last month advanced two cattle market reform bills, including Senator Chuck Grassley’s Cattle Price Discovery and Transparency Act.
“So, it could fold very well into any package he and his colleagues might be considering. That includes some of the meatpacking provisions and other things that he’s been focused on,” Cooper said.
As for E15’s chances after seven Midwest Republicans broke ranks and backed the House bill.
“We would expect the same thing to happen in the Senate. In fact, there’s probably more bipartisan interest in the Senate around the provisions that were in that bill that slipped through the House,” he said.
And ahead of the November elections, both parties will be looking for anything they can point to as possibly reducing near-record gas prices.
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Jul 7, 2022
The U.S. exported 147.06 million gallons of ethanol and 966,108 metric tons of distillers grains in May, according to data released by the USDA Foreign Agricultural Service on July 7. Exports of ethanol were up when compared to May 2021, while distillers grains exports were down.
The 147.06 million gallons of ethanol exported in May was down when compared to the 185.19 million gallons exported in April, which was the highest reported monthly export level in four years. May exports, however, were more than double the 70.39 million gallons reported for the same month of last year.
The U.S. exported ethanol to more than 40 countries in May. Canada was the top destination at 41.8 million gallons, followed by South Korea at 19.33 million gallons and the Netherlands at 15.41 million gallons.
The value of U.S. ethanol exports reached $410.39 million in May, down from $496.02 million the previous month, but up from $159.32 million in May 2021.
The U.S. exported a total of 725.91 million gallons of ethanol during the first five months of 2022 at a value of $1.93 billion, compared to 582.36 million gallons exported during the same period of last year at a value of $1.06 billion.
The 966,108 metric tons of distillers grains exported in May was up when compared to the 813,749 metric tons exported in April, but down from 1.04 million metric tons exported in May 2021.
The U.S. exported distillers grains to approximately three dozen countries in May. Mexico was the top destination for U.S. distillers grains exports at 229,231 metric tons, followed by South Korea at 123,077 metric tons and Vietnam at 111,080 metric tons.
The value of U.S. distillers grains exports reached $311.85 million in May, up from both $243.12 million in April and $286.58 in May of last year.
Total U.S. distillers grains exports for the first five months of the year reached 4.66 million metric tons at a value of $1.36 billion, compared to 4.49 million metric tons exported during the same period of 2021 at a value of $1.18 billion.
Additional data is available on the USDA FAS website.
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Jul 6, 2022
U.S. operable production capacity for ethanol and renewable diesel expanded in April, while biodiesel capacity fell slightly, according to data released by the U.S. Energy Information Administration on July 5. Feedstock consumption was up when compared to April 2021.
Total capacity for ethanol, biodiesel, renewable diesel and other fuels, defined to include renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline, and other biofuels and biointermediates, reached 21.479 billion gallons in April, up from both 21.022 billion gallons the previous month and 20.777 billion gallons in April 2021.
Ethanol capacity was at 17.34 billion gallons in April, up 17 MMgy when compared to the 17.323 billion gallons of capacity reported for March. Ethanol capacity, however, was down 56 MMgy when compared to the 17.396 billion gallons of capacity in place during the same month of last year.
Biodiesel capacity fell to 2.217 billion gallons in April, down 14 MMgy when compared to the 2.231 billion gallons of capacity reported for March. When compared to the 2.41 billion gallons of capacity in place in April 2021, biodiesel capacity was down 193 MMgy.
Capacity for renewable diesel and associated fuels expanded to 1.922 billion gallons in April, up 454 MMgy when compared to the 1.468 billion gallons of capacity in place the previous month. Renewable diesel capacity was up 951 MMgy when compared to the 971 MMgy of capacity in place in April 2021.
U.S. biofuel producers consumed an estimated 25.273 billion pounds of feedstock in April, down from 27.193 billion pounds the previous month, but up when compared to 24.243 billion pounds of feedstock consumed in April 2021.
Biofuel producers consumed 23.294 billion pounds of corn in April, down from 25.383 billion pounds the previous month, but up from 22.821 billion pounds in April 2021. Producers also consumed 164 million pounds of grain sorghum, up from 97 million pounds in March. The EIA withheld the volume of grain sorghum that went to biofuel production in April 2021 to avoid disclosure of individual company data.
According to the EIA, 839 million pounds of soybean oil was used to produce biofuels in April, down from 908 million pounds in March, but up when compared to the 700 million pounds consumed in April of last year. Approximately 211 million pounds of corn oil went to biofuel production in April, down slightly when compared to the 212 million pounds consumed in the previous month and flat when compared to the 211 million pounds consumed in April 2021. Biofuel producers also consumed 101 million pounds of canola oil in April. The volume of canola oil that went to biofuel production in March 2022 and April 2021 was withheld by the EIA to avoid disclosure of individual company data.
Biofuel producers also consumed 402 million pounds of yellow grease, 130 million pounds of beef tallow, 57 million pounds of white grease and 13 million pounds of poultry fat in April, compared to 338 million pounds, 127 million pounds 47 million pounds and 15 million pounds, respectively, in March. Biofuel producers consumed 248 million pounds of yellow grease, 93 million pounds of beef tallow, 64 million pounds of white grease, and 36 pounds of poultry fat in April 2021. Biofuel producers also consumed 3 million pounds of other waste fats, oils and greases in April 2021. The EIA withheld data on the consumption of other fats, oils and greases in April 2022 and March 2022 to avoid disclosing individual company data.
According to the EIA, biofuel producers also consumed 62 million pounds of feedstock classified as “other” recycled feeds and wastes in April, down from both 66 million pounds in March 63 million pounds in April 2021.
Additional data is available on the EIA website.
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Jun 27, 2022
Turkey is the largest buyer of U.S. distillers’ dried grains with solubles (DDGS) in the Middle East region. However, due to COVID-19 travel restrictions, the U.S. Grains Council was unable to engage Turkish buyers via in-person programs for nearly two years.
In October 2021, in-person programming resumed when the Council invited a delegation of Turkish buyers to the United States to attend the Distillers’ Grains Technology Conference (DGTC). During the group’s travels, team members were able to learn about U.S. DDGS production, meet with a variety of suppliers and explore export channels. As a result of the program, the team members purchased more than $14 million of U.S. DDGS. The program was accomplished by using Agriculture Trade Promotion (ATP) funds provided by the U.S. Department of Agriculture.
The team, hosted by the Council and the Illinois Corn Growers Association, visited a U.S. corn farm, river elevators, and Marquis Energy, the largest single-site ethanol plant in the world. Additionally, the team met with agribusiness companies, including StoneX in Chicago, and toured a container port facility in Savannah, Georgia, where they were hosted by two DDGS exporters.
Turkey is a traditional importer of bulk DDGS but has recently bought increasing quantities of DDGS in containers, making the visit timely for evolving marketing opportunities in the Middle East region.
Following the port visit, the team attended the DGTC in Louisville, Kentucky, where they heard about emerging technologies in the corn co-product space, which will likely generate future demand for these products. During the conference, the Council organized individual meetings with U.S. agribusinesses, including CHS, Gavilon, The Andersons, Inc., and Louis Dreyfus Company. The meetings provided a private venue for attendees to conclude negotiations to purchase U.S. DDGS.
Following the trip, the team purchased 40,000 metric tons of U.S. corn co-products valued at more than $14 million. The Council invested $50,000 of ATP funds to execute this program. The resulting $14 million worth of business conducted yielded a return on investment of over $280 per $1 of ATP funds invested.
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Jun 30, 2022
The U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA) welcome Canada’s finalized Clean Fuel Regulations, an initiative to reduce the lifecycle carbon intensity of fuel and energy used in Canada and achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. The Canadian Clean Fuel Regulations will rely heavily on the use of low-carbon biofuels like ethanol. For example, the program has modeled compliance to include an average of 15 percent ethanol (E15) in gasoline by 2030.
“We applaud Canada for finalizing its Clean Fuel Regulations and leading the globe in putting a plan in place to slash greenhouse gas emissions from the transportation sector through higher blends of biofuels,” the organizations said. “The Clean Fuel Regulations set Canada on a path toward better air quality, energy security, and carbon mitigation, all supported by rural communities, by setting the achievable goals of reducing more than 20 million tons of greenhouse gas emissions through a move to 15 percent ethanol in all gasoline by 2030. The Clean Fuel Regulations stand as testimony to the powerful impact biofuels can and will have for Canada’s transportation future.”
Background
In March 2021, the Council, Growth Energy and RFA submitted comments to Environment and Climate Change Canada regarding its proposed regulation.
Learn more about the Clean Fuel Regulations.
Read the original press release here.
Jun 28, 2022
A new study released today by the Department of Energy (DOE) found that the U.S. ethanol industry once again leads the nation in the share of its workforce that is comprised by military veterans, with one in every six employees previously serving in the armed forces. The DOE report also showed that the concentration of union workers in the ethanol industry is higher than the national average.
“Veterans make up 16% of the corn ethanol workforce, a higher concentration of veterans than any other energy technology and higher concentration than the 6% national average,” according to the report, which was prepared by DOE’s Office of Policy, Office of Energy Jobs. Across all energy sectors, veterans account for 9% of the workforce.
Meanwhile, ethanol industry workers represented by a union or labor agreement make up 7% of the industry workforce, higher than the national workforce average of 6%. The ethanol industry’s union worker density is identical to that of the petroleum fuels sector, according to the report.
“Today’s report from DOE confirms once again that the U.S. ethanol industry proudly leads the way in hiring military veterans,” said RFA President and CEO Geoff Cooper, himself an Army veteran. “The ethanol industry’s values and priorities align extremely well with those of our women and men in uniform, so it’s no surprise that one out of every six ethanol industry workers is a veteran. Military veterans know that they can continue to protect their fellow Americans and serve their country by producing a homegrown, cleaner, greener, and more affordable renewable fuel.”
Cooper also noted that the DOE report underscores that progress is being made toward the industry goals of greater diversity, equity, and inclusion.
- Females account for 30% of the ethanol industry workforce, well above the 25% average across all energy sectors.
- Workers with disabilities make up 4% of the ethanol industry workforce, double the average across all energy sectors.
- The portion of the ethanol industry workforce made up of Hispanic or Latino workers has grown from 9% in 2018 to 12% in 2022, while the share comprised of Native Hawaiian or other Pacific Islander workers has doubled from 1% to 2%.
The shares of workers identifying as American Indian or Alaska Native (1%), Asian (6%), Black or African American (5%), and two or more races (5%) have held steady since 2018.
Read the original story here.