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Ethanol Producer Magazine

Aug 14, 2014

By North Dakota Farmers Union

Ethanol production in North Dakota generates significant income for retail agricultural service and supply dealers, roughly $700 million a year, according to a study recently released by the Center for Agricultural Policy and Trade Studies at North Dakota State University.

The study, commissioned by North Dakota Farmers Union (NDFU), directly links 10 percent of all agricultural retail sales to ethanol production.

“Growing corn for ethanol production is not only an important value-added market for farmers, it is a lucrative product for fuel suppliers to retail,” said NDFU President Mark Watne. “Thirteen cents of every sales dollar last year was directly related to ethanol production.”

The study outlined four immediate impacts of ethanol production: increased commodity prices, increased net farm income, increased agricultural inputs, and increased land prices.

According to the study, ethanol production in the U.S. was about 1.6 billion gallons in 2000. A decade later, America produced 12.7 billion gallons of ethanol, consuming nearly 37 percent of the U.S. corn crop. That increased demand raised corn prices from $2 per bushel on average in 2005 to almost $7 in 2012.

“Corn sets the price for all other commodities,” noted Watne. “It’s to our advantage to grow, sell and buy this home-grown renewable fuel.”

To view the study in full, go to AG STUDY

Read the original story here : Study Shows Ethanol Impact On Retail Ag Service Sales

 

Domesticfuel.com

Aug 12, 2014

By Cindy Zimmerman

Concluding the sixth year of sponsorship at the Sturgis Motorcycle Rally and the Buffalo Chip Campground, Robert White with the Renewable Fuels Association (RFA) believes they are making some real headway in getting the true story about ethanol to motorcycle riders.

“The education to the riders is actually taking on a new life,” said White. “We’re seeing riders talking to riders.”

In this edition of the Ethanol Report, White talks about a rider who pulled up for the Free Fuel Happy Hours who said he defended ethanol to his friends at the rally who told him it was a bad for his motorcycle. “He said ‘I kinda came unglued on them’,” he related. The biker told him that he had been talked in to using it at the rally the year before, and he’s “been using it this entire last year without any issue.”

In another case, White said a guy with a brand new Harley said he had been told by the dealer not to use ethanol and he wanted to get a response to that. “And I said why would you believe me?” White said. “I didn’t engineer your motorcycle, I didn’t put the parts together, I’m not providing a warranty for that motorcycle.” The man agreed, noting that neither did the dealership, but his owners manual from Harley in fact said he could use 10% ethanol. “Harley’s been doing this a long time, as have (other motorcycle manufacturers) they know what fuel is going to be most prominent, least expensive, highest octane option for these motorcycles, and it’s going to be ethanol.”

White says they are looking forward to next year, which will be the 75th annual Sturgis Motorcycle Rally, where RFA will having an even bigger presence with an even bigger crowd.

Read the original story here : RFA Making Inroads In Motorcycle Education

Brownfield Ag News

Aug 12, 2014

By Ken Anderson

As the 2014 Renewable Fuels Standard (RFS) rule continues to work its way through the interagency review process in Washington, there are now indications that it may not be made public until after the November elections.

During his weekly conference call with ag reporters, Iowa Senator Chuck Grassley was asked what he’s hearing about the RFS.

“I haven’t heard anything definitive on RFS that’s anything official,” Grassley says. “My gut feeling—and I think the gut feeling of many other people—is that it’s not going to come out until after the election.”

Speaking at the recent American Coalition for Ethanol conference in Minneapolis, Paul Machiele, director for fuel programs in EPA’s Assessment and Standards Division, said he couldn’t predict how long the review process will take.

“That review period can take anywhere from 30 to 90 days—sometimes 60 days.  I don’t know what they’re going to do with this one,” said Machiele.

Grassley hopes the continued delays portend a more positive outcome for the biofuels industry.

“The only good news that I can see in that is that from where they started last November, until now, maybe the delay of their making a decision would indicate that there might not be as an erratic change in policy as what they originally proposed,” Grassley says.

The EPA’s original proposal cut the corn ethanol fuel requirement from a statutory level of 14.4 billion gallons to just over 13 billion gallons.  Biofuels supporters lobbied the agency to reverse that decision and move the number closer to the 14.4 billion gallon figure.

Read the original story here : RFS Announcement May Not Come Until After November Elections

 

Ethanol Producer Magazine

Aug 11, 2014

By Susanne Retka Schill

Corn use for ethanol production is likely to hit 5.1 billion bushels for the current marketing year, based on current estimates of 14.1 billion gallons of ethanol production. University of Illinois ag economist Darrel Good focused on ethanol prospects in his Aug. 11 analysis, the day before the USDA’s August supply/demand report.

“Ethanol use of corn has increased during the 2013-14 marketing year following a sharp decline during the 2012-13 marketing year,” he writes. “The increase has been fueled by a combination of increased domestic consumption of ethanol, increasing exports and declining ethanol imports, and some rebuilding of ethanol stocks. Based on U.S. Energy Information Administration monthly estimates of ethanol production from September 2013 through May 2014 and weekly estimates for June and July 2014, it appears that domestic ethanol production will reach about 14.1 billion gallons during the 2013-14 corn marketing year that ends on August 31. That compares to about 12.8 billion gallons during the 2012-13 corn marketing year and 13.8 billion gallons during the 2011-12 corn marketing year.  Ethanol production of 14.1 billion gallons points to corn consumption of about 5.1 billion bushels during the current marketing year.”  

A positive trade balance and a modest increase in domestic motor fuel consumption should support ethanol production during the upcoming marketing year, Good writes.  “A positive trade balance should be supported by relatively low ethanol prices and relatively high gasoline prices as well as favorably priced U.S. ethanol relative to Brazilian ethanol.”

As for the U.S. EPA’s final rulemaking for the renewable fuels standards, he says, it “is not expected to have much impact on domestic ethanol consumption during the year ahead. The primary impact from the expected reversal of the preliminary write down of the renewable mandate for 2014 would be to incentivize a small increase in consumption of E15 and E85. Domestic ethanol production during the year ahead should be maintained at or slightly above the level of the current marketing year, pointing to corn consumption of 5.15 to 5.2 billion bushels.”  

For the complete analysis of other demand sectors, see the complete report “Prospects for Corn Consumption." 

Read the original story here : Corn Use For Ethanol Consumption Likely To Top 5 Billion Bushels This Year

Platts

Aug 6, 2014

By Beatrice Pupo

US ethanol exports in the first six months of 2014 soared 56% year on year to 1.6 billion liters (416 million gallons), according to US Census Bureau data released Wednesday.

The data includes all ethanol types except for beverage use.

The data shows US ethanol exports totaled 227 million liters in June, up 13% compared with May's total, and 76% above the 129 million liters exported in June 2013.

The majority of the US ethanol exports in June -- 151 million liters -- were classified as denatured ethanol for fuel use, with most, some 125.5 million liters, sent to Canada. The second most popular destination was the United Arab Emirates with 19 million liters.

Exports to the UAE have surged 35% year on year in the first half of 2014 to 137 million liters. Traders expect exports to the UAE to remain strong, and see it as a growing outlet for US ethanol in 2014 and 2015.

US exports of denatured ethanol for fuel use totaled 110 million liters in June 2013.

A vessel carrying 20 million liters was recently reported to have been fixed to leave the US Gulf Coast in mid-August headed for Fujairah, according to information from shipping brokers.

US exports of undenatured ethanol for fuel use jumped from 15.2 million liters in June 2013 to 71.3 million liters in June, with Europe ranking as the top destination at 19.8 million liters -- Spain taking 16.3 million liters and the Netherlands 3.5 million liters.

The volumes taken by Spain are expected to be designated for blending for re-export into North Africa, sources said.

US ethanol exports are expected to remain strong throughout 2014 amid softer US ethanol prices due to tumbling feedstock prices.

Despite a recent drop in production margins, levels remain well above 2013 marks and should support plants continuing to boost output rates.

Estimates from Kingsman, a unit of Platts, show US fuel ethanol exports growing more than 20% compared with 2013, to a total of almost 3 billion liters, in 2014.

Read the original story here : US H1 2014 Ethanol Exports Soar 56% : Census Bureau

 

Ethanol Producer Magazine

Aug 5, 2014

By Katie Fletcher

More than 200 attendees made the trip to the 2014 American Coalition of Ethanol conference in Minneapolis, Minnesota. ACE was founded in 1987 as a grassroots-driven organization, and its members and others in the industry demonstrate their passion by attending the conference year after year, some even attending all 27.

Minnesota Gov. Mark Dayton, was amongst those gathered this year at the welcome reception, giving opening remarks to set the tone for the conference. Dayton mentioned amongst his wishes for the future of the industry to see flex fuel engines from every vehicle manufacturer, so consumers have the option of filling their tanks with E10 or E85 at the pump. “It just makes so much sense,” Dayton said. He also mentioned his wishes for the use of E20, highlighting work done at universities in Minnesota proving its viability.

Ethanol, Dayton told the audience, provides consumer’s lower fuel prices and a cleaner environment. He thanked the crowd for their persistence and perseverance in its longevity. “We have overwhelming bipartisan support for ethanol initiatives in the Minnesota legislature, because we know it’s good for Minnesota and we know it’s good for our country,” Dayton said.

The welcome reception also featured poster presentations from University of Minnesota professors and graduate students for viewing and the opportunity to discuss the scientific research being done in the state to aid in the future of ethanol.

ACE has launched a new campaign with the slogan “Power by People,” emphasizing that it takes a group of people to come together and be part of the movement to shape the future of ethanol. The slogan is reflected in the diverse group of people lined up to speak during the conference—board members, managers, business advisors, engineers, accountants, CEOs, professors, scientists, farmers, producers, brokers and the list goes on. Topics include EPA updates, innovation in the industry, sustainability plans, risk management, enhancing yeast fermentation and FDA’s Food Safety Modernization Act, amongst other topics.

Read the original story here : ACE Conference Kicks Off With Welcome From Gov. Dayton

Ethanol Producer Magazine

Aug 4, 2014

By Erin Voegele

The U.S. EPA has released renewable identification number (RIN) data for June, reporting that more than 1.46 billion RINs were generated during the month across all biofuel categories.

For the second consecutive month of 2014, no cellulosic RINs were generated. Overall, 72,754 D3 cellulosic biofuel RINs have been generated so far this year, with 28,586 D3 RINs generated for cellulosic ethanol and 44,168 generated for renewable gasoline. All D3 RINs generated this year were generated by domestic producers.

A total of 11,213 D7 cellulosic diesel RINs have been generated this year, with 8,859 generated for cellulosic diesel and 2,563 generated for cellulosic heating oil. According to the EPA, 8,859 D7 RINs were generated by domestic producers, while 2,563 were generated by importers.

Nearly 17.86 million D5 advanced biofuel RINs were generated in June, bringing the total for the first half of the year to 94.92 million. Most, 65.48 million, have been generated for ethanol, with 14.48 million generated for biogas and 8.32 million generated for naptha. An additional 6.72 million D5 RINs were generated for non-ester renewable diesel. More than 42.51 million D5 RINs were generated domestically, with 52.75 generated by importers.

Nearly 1.21 billion D6 renewable fuel RINs were generated in June, bringing the total for the first six months of the year to more than 7.02 billion. The vast majority, 6.88 billion D5 RINs, were generated for ethanol, with 6.05 million generated for biodiesel. An additional 140.3 million D6 RINs were generated for non-ester renewable diesel. More than 6.88 billion D6 RINs were generated domestically, with 4.58 million generated by importers and 140.3 million generated by foreign entities.

Approximately 237.49 million D4 biomass-based diesel RINs were generated in June, bringing the total for the first half of the year to nearly 1.21 billion. More than 867.52 million D4 RINs were generated for biodiesel, with 342.11 million generated for renewable diesel. More than 949.01 D4 RINs were generated by domestic producers with 62.05 million and 198.57 million generated by importers and foreign entities, respectively.

According to the EPA, approximately 8.33 billion RINs have been generated so far this year, with 206.81 million of those RINs retired. An estimated 334.81 million 2014 RINs are locked and available, with 7.79 million unlocked and available.

Additional RIN data is available on the EPA website.

Read the original story here : EPA Releases June RIN Data

Reuters

July 31, 2014

By Ayesha Rascoe

The U.S. biofuel industry is urging the Obama administration to go beyond simply raising proposed targets for use of the fuels, making the case instead for fundamental changes to the government's approach to the renewable fuel program.

There has been a flurry of meetings between biofuel backers and White House officials in advance of the release of the long-delayed targets for the use of renewable fuels this year, which are expected to reach the Office of Management and Budget for review within weeks.

The Renewable Fuel Standard requires increasing amounts of biofuels to be blended into gasoline and diesel supplies each year through 2022.

The targets for this year have been plagued by repeated delays amid outcry from biofuel producers, such as Abengoa Bioenergy, Green Plains Inc and Pacific Ethanol Inc, who say a draft plan slashing the 2014 standards could significantly harm the industry.

Biofuel industry sources said in May the Environmental Protection Agency would likely raise proposed levels.

Based on rising gasoline demand, the corn ethanol portion of the mandate is widely expected to be increased to about 13.6 billion gallons (49 billion liters) from 13 billion announced in November.

But the key message biofuel groups have delivered to the administration has been that their industry's future viability hinges on more than just tweaking volume requirements for the current year.

Meeting with senior White House adviser John Podesta last week, the Advanced Biofuels Association pressed the White House to speed up approvals of new fuels that can qualify as advanced and cellulosic fuels, known as pathways.

"We really tried to focus on how important it was to get pathways approved in a more expeditious way so we can actually bring more gallons to market," ABFA President Michael McAdams told Reuters. Seven top executives of companies waiting on approvals also attended the meeting.

More than 35 applications for new biofuel sources are pending at the EPA, with an average wait time of two years. The delays keep fuels off the market because would-be buyers cannot get credit under the biofuel mandate to purchase them.

BETTER CORN ETHANOL EMISSIONS?

While advanced biofuel producers seek the inclusion of new fuels, some corn growers have lobbied to protect the grain's position in the renewable fuel program.

Earlier this month, Congressman Bill Foster, Democrat of Illinois, and a group of lawmakers and scientists from the state met with White House officials including top energy and climate adviser Dan Utech.

They argued the White House should reconsider its estimates of the lifecycle greenhouse gas emissions for corn ethanol as it weighs both the final targets for 2014 and the fuel's role in the administration's broader climate policy.

Corn-based ethanol is currently classified as a "conventional biofuel" that delivers only a 20-percent emissions improvement over gasoline. Some environmental groups have blasted the fuel as not much better than fossil fuels and critics have proposed stripping corn ethanol out of the mandate.

As the Obama administration focuses on its climate legacy, changing the EPA's findings on potential emission reductions from corn ethanol could shore up support in the administration and help fend off future attacks on the fuel.

"The carbon footprint and economics of corn-based ethanol are vastly improved from a decade ago," Foster said, noting less-energy intensive farming practices and more complete use of corn by-products.

The White House asked the scientists for additional information about their research on corn ethanol emissions, said David Beaudreau, a consultant representing the Illinois Corn Growers Association.

"They were intrigued and wanted to know more," Beaudreau told Reuters.

BLOCKING BLEND WALL ARGUMENT

For the Renewable Fuels Association, it is not the final levels for this year so much as the justification behind them that is most concerning.

The group has urged the EPA to not use the shortage of gasoline stations currently able to sell fuel with higher levels of ethanol as a reason to cut biofuel targets, arguing that it would set a precedent that could permanently limit the program's targets.

The EPA has justified lowering the 2014 target as necessary because U.S. fuel markets cannot absorb the amounts of ethanol called for by federal law, a problem known as the "blend wall."

That argument would embolden oil companies to prevent growth in biofuel use simply by not investing in new fuel pumps, said RFA president Bob Dinneen.

"We are going to sell a heck of a lot of ethanol this year no matter what," he said. "If EPA guts the program by turning it over to Exxon Mobil, you will never see that again."

Read the original story here : Biofuel Groups Press White House On More Than Just 2014 Targets