In the News

Ethanol Producer Magazine

August 15, 2024

The U.S. was home to 187 ethanol plants with a combined capacity of more than 18.01 billion gallons as of the end of 2023, according to data released by the U.S. Energy Information Administration on Aug. 15. 

When compared to the previous year, the number of plants held steady, but capacity was up 438 million gallons per year. EIA data indicates one plant located in South Carolina closed between Jan. 1, 2023 and Jan. 1, 2024, while one new facility in Texas was brought online. 

More than 70% of U.S. biodiesel capacity is located in the Midwest, with 6% on the East Coast, 14% in the Gulf Coast region, and 9% on the West Coast. 

Additional data is available on the EIA  website

Read the original story here.

Ethanol Producer Magazine

Aug 13, 2024

By Emily Skor

CEO of Growth Energy

For years, Growth Energy has highlighted the expertise of the nation’s top GHG lifecycle scientists to counter misinformation about American biofuels. Sound science is the bedrock of our legal strategy, which aims to protect the Renewable Fuel Standard against misguided challenges lodged year after year by certain critics of renewable fuels. Now, experts in the fields of biomass and agricultural economics are taking on the challenge directly by filing their own amicus brief challenging claims offered by plaintiffs in Center for Biological Diversity (CBD) v. EPA et al. (Case No. 23-1177), in the U.S. Court of Appeals for the District of Columbia Circuit.

In CBD’s case, plaintiffs argue that the climate benefits of biofuels are undermined by the negative impacts of cutting into previously undisturbed land—an argument we know is based on debunked research.

In response, researchers from the University of Illinois Chicago, University of Illinois Urbana-Champaign, University of Idaho, Oak Ridge National Laboratory, South Dakota State University, University of California-Davis and other institutions are setting the record straight and putting the best science before the D.C. Circuit.

Specifically, they point out, “When the RFS was first adopted in 2007, some analysts predicted its targets for producing ethanol in the United States would generate major land-use changes and that emissions associated with the conversion of ‘natural land’ to ‘cropland’ would result in higher GHG emissions than gasoline.” They continued, “Experts in the field of biomass and agricultural economics have demonstrated that much of the outlier research was based on flawed assumptions and methods related to land use.”

For example, they note, the “satellite imagery at the resolution used in those early studies failed to accurately distinguish between land that has never been tilled and cropland that was temporarily fallow ... outlier researchers have also erroneously treated ‘cropland pasture’ as ‘natural’ land not previously tilled.”

Now, they explain, real-world data is available showing, “In research examining farmland over a 36-year period, only 1.8 percent of the 1,000 land parcels outlier researchers described as 'converted' appeared to fall into the category of untilled grassland, while 98.2 percent was in agriculture and toggled between crop and non-crop uses.” They added, “For the small percentage of previously untilled lands described as ‘converted,’ there is no causal evidence linking the RFS or biofuels to any such change in use.”

In short, they write, “Analyses based on more complete, updated data found that the average carbon intensity of biofuels is significantly less than conventional gasoline. Over time, as technologies and practices advance, and with various incentives the federal government has put into place, that benefit is expected to continue growing at an accelerated pace.”

Certainly, they aren’t the first experts to correct the record on biofuels. In 2022, the U.S. Department of Energy (DOE) even sent a letter to Growth Energy sharing concerns “about the methods and assumptions used” by Tyler Lark, who has authored numerous discredited studies contradicting mainstream science on biofuels.

The new amicus brief takes peer review to the next level, with top academic experts explaining directly to the courts why—when it comes to ethanol’s environmental benefits—there is no longer any genuine debate. Hopefully, those backing misleading challenges to the RFS will take note and join us as we continue to expand access to low-carbon biofuels at the gas pump.

Read the original story here.  

Ethanol Producer Magazine

Aug 8, 2024

The U.S. exported 145.87 million gallons of ethanol and 645,592 metric tons of distillers grains in June, according to data released by the USDA Foreign Agricultural Service on Aug. 6. Exports of both products were up when compared to June 2023.

The 145.67 million gallons of ethanol exported in June was down slightly from the 154.39 million gallons exported the previous month, but up when compared to the 111.1 million gallons exported in June of last year. 

The U.S. exported ethanol to more than three dozen countries in June. Canada was the top destination for U.S. ethanol exports at 44.74 million gallons, followed by the U.K. at 25.77 million gallons and India at 14.73 million gallons. 

The value of U.S. ethanol exports reached $339.75 million in June, up from $332.99 million in May and $313.04 million in June 203. 

Total U.S. ethanol exports for the first half of the year reached 962.76 million gallons at a value of $2.16 billion, compared to 684.35 million gallons exported during the same period of last year at a value of $1.91 billion. 

The 945,592 metric tons of distillers grains exported in June was down when compared to the 1.01 million metric tons exported the previous month, but up slightly from the 943,740 metric tons exported in June 2023.

The U.S. exported distillers grains to approximately 43 countries in June. Mexico was the top destination for U.S. distillers grains exports at 200,900 metric tons, followed by South Korea at 116,222 metric tons and Indonesia at 100,967 metric tons. 

The value of U.S. distillers grain exports reached $246.28 million in June, down from $262.97 million the previous month and $302.31 million in June of last year. 

Total U.S. distillers grains exports for the first half of 2024 reached 5.87 million metric tons at a value of $1.62 billion, compared to 5.09 million metric tons exported during the same period of 2023 at a value of $1.68 billion. 

Additional data is available on the USDA FAS website

Read the original story here.

Fluid Quip Technologies

Jul 30, 2024

Fluid Quip Technologies (FQT) today announced the successful completion and commissioning of the world’s largest MSC™ System to date at Tharaldson Ethanol’s 175 million-gallon biorefinery in Casselton, North Dakota. This marks the twelfth FQT MSC™ system installed world-wide and expands the production of corn fermented protein, a high-quality protein ingredient in animal feed, providing superior nutrition solutions for pet, aquaculture and other animal feed markets which has up to a 40% lower carbon-intensity than competing products.

“Our MSC™ Technology is critical to not only creating a high-quality protein ingredient for pet food, but also allowing ethanol plants to achieve greater corn oil yields” said Neal Jakel, President of Fluid Quip Technologies, “FQT is excited to commission our largest MSC™ System and continue to collaborate with our customers to maximize the value of every kernel of corn.  The project is a testament to the market and value the team has achieved as nutrition customers look for more corn fermented protein to utilize in their rations.”

Fluid Quip Technologies provided the MSC™ Technology as well as the engineering, design, procurement, construction management and startup services for the project. The completion of this MSC™ System brings overall production capacity of FQT MSC™ protein products to over 750,000 tons per year.  The thirteenth FQT MSC™ system is currently under construction at the Ensus UK Limited’s facility in the UK.

About Fluid Quip Technologies

Fluid Quip Technologies® (FQT) is a premier technology and process engineering firm based in Cedar Rapids, IA, USA. FQT was founded on extensive experience and know-how within the corn wet milling and dry grind ethanol industries. FQT’s skilled engineering and technical leadership has been developing new technologies and process solutions applicable to the biofuels and biochemical markets for more than 30 years. For more information, visit www.fluidquiptechnologies.com.

Read the original press release here

Ethanol Producer Magazine

Jul 31, 2024

U.S. fuel ethanol production reached a record high of 1.109 million barrels per day the week ending July 26, up slightly from the previous record of 11.08 million barrels per day set late 2017, according to data released by the U.S. Energy Information Administration on July 31. Both fuel ethanol production and stocks were up 1% when compared to the previous week, while exports were up 2%. 

Fuel ethanol production averaged 1.109 million barrels per day the week ending July 26, up 14,000 barrels per day when compared to the 1.095 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending July 26 was up 42,000 barrels per day. 

Weekly ending stocks of fuel ethanol reached 23.973 million barrels, up 250,000 barrels when compared to the 23.723 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending July 26 were up 1.113 million barrels. 

Exports of fuel ethanol averaged 58,000 barrels per day the week ending July 26, up 1,000 barrels per day when compared to the 57,000 barrels per day of exports reported for the previous week. When compared to the same week of last year, exports for the week ending July 26 were down 83,000 barrels per day. No fuel ethanol imports were reported for the week ending July 26.

Read the original story here

Republican Eagle

Jul 19, 2024

An opinion piece published in the Republican Eagle on July 12 by the Lake Pepin Legacy Alliance presented a one-sided view of the environmental benefits of ethanol and mislead readers into believing that ethanol is not a climate-friendly alternative to petroleum  (“Maintain Climate Guardrails in Farm Bill”).

Contrary to the assertion in the piece, research from federal agencies including the U.S. Department of Energy and the U.S. Department of Agriculture have confirmed that ethanol is a low-carbon fuel with 40-50 percent less emissions than petroleum on a lifecycle basis.

The 2022 study cited by the authors to claim that ethanol is worse for the climate has been debunked by climate scientists upon peer review. Those researchers noted that the discredited study made “questionable assumptions,” “double counted” emissions, and used “outdated and inaccurate projections” to come to a biased conclusion against ethanol.In reality, ethanol not only reduces greenhouse gas emissions but also replaces toxic aromatic compounds in gasoline and reduces carcinogenic emissions like benzene, toluene, xylene, and other hydrocarbons that increase the risk of cancer, according to research conducted by the Minnesota-based Hormel Institute.

Had the authors undertaken a comprehensive review of the science, they would have found that the evidence overwhelmingly shows that ethanol has positive climate and human health benefits.

While we may not see eye-to-eye on that point, we agree with the authors on the need to maintain climate funding in the Farm Bill as a way to further assist Minnesota growers in implementing conservation practices like cover crops and no-till farming that will sequester more carbon in the soil, reduce runoff, and lower the carbon intensity of ethanol on a lifecycle basis. 

We look forward to working with them, and our congressional federal delegation, to support Minnesota’s environment and economy through a timely Farm Bill reauthorization. 

Brian Werner

Executive Director, Minnesota Biofuels Association

Read the original letter here.

Ethanol Producer Magazine

Jul 15, 2024

CoBank maintained its positive outlook for U.S. ethanol production in its latest Quarterly Research Report, released July 11, with higher margins and a strong export market continuing to benefit ethanol producers. 

According to CoBank, sustained lower corn and natural gas prices have helped boost ethanol margins. Well-managed facilities will continue to take advantage of the higher margin environment in the months ahead, the report predicts. 

The recent narrowing of the ethanol price discount to gasoline could affect price-sensitive markets, CoBank said in the report, but noted that the summer driving season does help offset some price challenges.

While domestic ethanol demand has tracked lower in tandem with decreased gasoline demand in recent months, export demand has been strong. Within the report, CoBank cites the USDA’s May forecast that 2024 fuel ethanol exports could reach $4 billion this year, matching the fiscal year 2022 record.

CoBank’s report also addresses the outlook for corn, explaining that the USDA shocked the market at the end of June with higher-than-expected totals on corn acreage and stocks. Planted corn acreage is up nearly 2% when compared to data gathered as part of the USDA’s March Prospective Plantings survey. Corn stocks were also well above expectations. CoBank said the larger planted acreage and higher stocks should provide some cushion against potential production losses from widespread floods that occurred across Iowa, Minnesota and South Dakota in June. In addition to flooding, the U.S. corn crop also risks yield losses form expected extreme heat this summer. 

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

Read the original story here.

Renewable Fuels Association

Jul 9, 2024

A  new study  by economists at UC Berkeley and the U.S. Naval Academy found California drivers could expect to save 20 cents per gallon if the state allowed gas stations to sell E15 fuel – a blend of 15 percent ethanol and 85 percent gasoline approved in all 49 other states.

The potential savings for California consumers could reach $2.7 billion annually, according to the study authored by David Zilberman, PhD, a distinguished professor in the Agricultural and Resources Economics Department at UC Berkeley, and Scott Kaplan, PhD, assistant professor in the Economics Department at the United States Naval Academy.

“Consumers have the potential to gain significantly from the introduction and purchase of E15,” according to the study. “In particular, our estimates suggest an approximately 20 cents per gallon discount for E15 compared with E10 after adjusting for energy content.” The authors also highlighted the benefit of E15’s lower carbon emissions. “In California, price savings for lower GHG intensity fuels are larger, likely due to California-specific policies incentivizing low carbon fuels.”

California is the last remaining state to limit ethanol inclusion in gasoline to just 10 percent (E10), but state regulators are considering approval of E15 after extensive vehicle testing showed the fuel offers important emissions benefits. E15 is legally approved by the U.S. Environmental Protection Agency for use in all cars, pickups, SUVs and vans manufactured in the last 24 years.

The study,  sponsored by the Renewable Fuels Association, details the economic viability and implications of adopting E15 in California by analyzing fuel characteristics, market dynamics, and regulatory influences. Beyond direct cost savings, researchers found that increased use of ethanol-blend biofuels lowers gasoline usage, enhances energy security and reduces greenhouse gas emissions.

“Based on this study’s results, a typical California household could save $200 per year on their gas bill if state regulators would simply allow drivers to fuel up on E15,” said RFA President and CEO Geoff Cooper, noting that more than 24 million registered vehicles in California are already approved to use E15, but stations are not allowed to sell it. “It’s time for California to catch up to the other 49 states that already allow consumers to choose lower-cost, lower-carbon E15. The state’s failure to approve the use of E15 essentially amounts to a gas price hike at a time when hardworking Californians can least afford it.”

The study also found that “low-income commuters may stand to gain the most from a transition towards E15,” given their propensity to have longer commutes and less fuel-efficient vehicles.

An earlier study commissioned by the California Air Resources Board  found that adopting E15 in California could also provide significant environmental benefits, cutting emissions of tailpipe pollutants—like particulate matter and carbon monoxide—that cause air quality and human health problems.

Read the original press release here.