In the News
ClearFlame Engine Technologies
May 17, 2021
ClearFlame Engine Technologies, a growing startup dedicated to the development of clean engine technology today announced a partnership with Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, to conduct pilot demonstrations of its proven solution for diesel engines using low-cost ethanol in Class VIII trucks.
ClearFlame will provide Alto with a Class VIII truck retrofitted with a 500hp heavy-duty demonstration engine, which can match diesel torque and efficiency by achieving true diesel-style combustion of any decarbonized fuel. In turn, Alto will provide fuel and fleet support, which will enable real-world testing on the road. ClearFlame anticipates its engine running on ethanol can reduce GHG vehicle emissions by more than 45 percent and offer an estimated 15-30 percent TCO savings when compared with a diesel-fueled solution.
“This is an important milestone for us as we can now offer fleets a widely available fuel solution so they can begin to test our technology easily in real-world environments,” said Dr. BJ Johnson, ClearFlame CEO and co-founder. “Alto provides the important logistical infrastructure critical to ensuring successful demonstration – everything from tank installation to dispensing of the fuel, with a well-established existing liquid fueling infrastructure already in place. We look forward to working with them to drive forward our mission of quickly decarbonizing heavy-duty industry with a practical, cost-effective solution that is available today.”
“Alto Ingredients is partnering with ClearFlame on its engine project to support our customers’ CO2 reduction efforts by displacing 100 percent of the diesel in the tank,” said Mike Kandris, CEO, Alto Ingredients. “We are proud to partner with ClearFlame in such a transformative project within the fuel industry, promoting the increased use of ethanol and contributing to material improvements in the decarbonization of our environment.”
ClearFlame’s unique engine technology enables low-carbon and carbon-negative fuels to be easily integrated into existing diesel engine platforms, offering a more sustainable and cost-effective solution than diesel fuel while utilizing existing liquid fuel infrastructure. It provides the same performance, efficiency, and rugged practicality associated with diesel engines, while eliminating the need for complex aftertreatment solutions. By replacing 100 percent of the petroleum fuel used with decarbonized fuels such as ethanol, ClearFlame’s engine technology significantly reduces greenhouse gas emissions, particulate matter and smog, helping to meet stringent emissions regulations while reducing overall engine cost. ClearFlame-enabled trucks will begin driving in late 2021, for fleet
testing to begin in the first quarter of 2022.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information please visit www.altoingredients.com.
About ClearFlame Engine Technologies
At ClearFlame Engine Technologies, we’re breaking the bond between the diesel engine and diesel fuel, accelerating the path to true emissions reduction for the heavy-duty and off-highway markets. Our technology meets global emissions regulations using climate-friendly fuels available throughout the world. Our technology lowers costs by negating the need for complex aftertreatment technologies without compromising the practicality or performance of traditional diesel engines.
For more information, visit www.clearflameengines.com, and follow us on LinkedIn and Twitter (@ClearFlameEng).
Read the original press release here.
May 14, 2021
Energy Secretary Jennifer Granholm briefly discussed how biofuels will into the U.S. Department of Energy’s priorities under the Biden administration during a House Committee on Appropriations hearing on May 6.
The hearing was held by the Subcommittee on Energy Water Development and Related Agencies to consider the DOE’s fiscal year 2022 budget request.
During the event, Rep. Cheri Bustos, D-Ill., stressed the importance of renewable fuels, such as ethanol and biodiesel, to rural communities. “These fuels have the potential to reduce our emissions right now,” she added, and asked Granholm how she thinks biofuels will fit in the DOE’s and Biden administration’s blueprint for a net-zero future.
Granholm said the agency has a whole biofuels and energy team working on that issue, and stressed the role she thinks biofuels can play in reducing energy-intensive forms of transportation, including long-haul trucking, aviation and marine transport. “Electric vehicles obviously have emerged as this great technology—which they are for light duty vehicles like cars and SUVs,” she said. “But pickups, heavy duty transportation modes that really need more of an energy density of liquid fuels, that is where biofuels are going to play a critical role and that’s especially true in aviation and marine fuels. So, we think they have a huge role to play, especially in long-haul trucking, and other areas too…I feel very bullish about this bottom line.”
Granholm said the DOE sees biofuels playing a big role in the U.S. transportation sector. “We think those refineries can be producing, and should be producing, aviation fuels right now,” she said, stressing significant demand currently exists for sustainable aviation fuels (SAF). “This is very exciting and its not much to retrofit a biofuel refinery to be able to produce aviation fuel,” she added. “So, we have our team working on this, so I will keep you posted, because I think it’s very exciting.”
A full replay of the hearing is available on the House Committee on Appropriations website.
Read the original story here.
May 11, 2021
Representatives of the ethanol industry are urging U.S. EPA Administrator Michael Regan to take immediate steps to facilitate the increased use of E15 to help alleviate fuel shortages in states impacted by the recent ransomware attack on the Colonial Pipeline.
Regan on May 11 issued an emergency fuel waiver to help relieve fuel shortages in states where the supply of reformulated gasoline has been impacted by the pipeline shutdown. The action waives the federal Reid vapor pressure (RVP) requirements for fuel sold in reformulated gasoline areas of the District of Columbia, Maryland, Pennsylvania, and Virginia to facilitate the supply of gasoline. The waiver is effective through May 18.
The Renewable Fuels Association and Growth Energy are encouraging the EPA to also take immediate steps to facilitate the increased use of E15 to help fill the void in gasoline supplies.
In a letter to Regan, Geoff Cooper, president and CEO of the RFA, urges the agency to take two actions. “First, EPA could suspend the requirements outlined in sections 1090.1400 – 1090.1450 of Subpart O (“Survey Provisions”) and section 1090.1510 of Subpart P (“Retailer and Wholesale Purchaser-Consumer Provisions”) to Part 1090 of the Code of Federal Regulations,” Cooper wrote. “Second, EPA could immediately adopt the changes it recently proposed to Underground Storage Tank (UST) regulations in 86 Federal Register 5094 (January 19, 2021). We encourage EPA to also evaluate whether other provisions of Part 1090 should be temporarily suspended to allow for greater use of ethanol during this emergency. These actions would allow many retailers who do not sell E15 today to immediately begin offering the fuel without being unduly delayed.”
Cooper also stressed that at least 180,000 barrels per day of ethanol production capacity is currently idle and could be “quickly activated or reoriented to help alleviate impending fuel shortages on the East Coast.”
“For many reasons, utilizing domestically produced low-carbon fuel to help offset the supply shortage is preferable to importing more petroleum products, as is currently being planned,” he continued.
Cooper also noted that the Colonial Pipeline outage underscores a need for more diversity and flexibility in the U.S. transportation fuels sector. “Overreliance on petroleum has left our transportation fuels infrastructure vulnerable to disruption and volatility, with American consumers bearing the brunt of price spikes and fuel shortages,” he wrote. “By comparison, the fuel ethanol industry’s infrastructure is unconcentrated, dispersed, and uses a variety of efficient delivery channels.”
Emily Skor, CEO of Growth Energy, also sent a letter to Regan and Energy Secretary Jennifer Granholm calling for the agencies to immediately reduce restrictions on higher ethanol-blended fuels to provide relief from supply disruptions and rising gas prices. “By immediately removing remaining regulatory hurdles and providing greater access to E15, you can help keep fuel prices in check for American consumers and ease concerns about fuel supply,” she wrote.
“We ask that you make E15 broadly available at all fuel terminals in areas impacted by related fuel shortages,” Skor continued. “We also request EPA finalize the proposed rule that would broaden the availability of existing infrastructure for use with E15 and related labeling concerns. We also urge you to remove unnecessary misfuelling requirements, including restrictions on the use of E15 in shared fueling hoses with 10 percent blended fuel and related fuel sampling requirements. Finally, we strongly encourage the government to strengthen its use of higher ethanol blends such as E85 in its current flex-fuel vehicle fleet.”
Read the original story here.
May 5, 2021
The U.S. Environmental Protection Agency is handing over to the Government Accountability Office information on oil refiners that petitioned for exemptions to biofuel blending mandates, in an effort to help the government watchdog investigate the exemption program.
The move shows the Biden administration's willingness to help scrutinize the so-called small refinery exemption program, which had expanded dramatically during former President Donald Trump's term.
The disclosed confidential information will include all documents, information and data related to small refinery exemption petitions received by the EPA from the program since its inception, according to a notice on Wednesday in the Federal Register.
Under U.S. law, oil refiners must blend billions of gallons of biofuels into the nation's fuel pool, or buy credits from those that do. Refiners can apply for exemptions if they can prove the requirements would do them financial harm.
The exemptions have sparked controversy between oil and corn groups. Corn and biofuel groups say that the exemptions hurt demand for their fuel, while oil refiners reject that claim and say the exemptions are necessary to keep small refiners in business.
GAO announced in January 2020 that it would review the EPA's approval of small refinery exemptions under the Renewable Fuel Standard, including viability scores given to the applications by the Energy Department, which helps advise EPA on the program.
GAO launched the investigation after a request to do so from Democratic and Republican representatives from corn-growing states such as Illinois, Iowa and other states.
The Renewable Fuels Association, a biofuel trade group, cheered the news.
"We applaud the new leadership at EPA for providing the requested information to GAO, and we thank Administrator (Michael) Regan for taking another important step toward restoring the integrity of the RFS program," said RFA President Geoff Cooper.
Read the original story here.
May 4, 2021
American exports of ethanol accelerated in March to 133.0 million gallons (mg), the second-largest volume in a year and up 31% from February’s dip. Exports to China spiked from 4.7 mg to 48.3 mg for the country’s second-largest monthly imports of American ethanol on record (and narrowly missing the April 2016 high). Similarly, shipments to Canada accelerated by 85% to a four-month high of 34.2 mg, and India’s imports were up 13% over February to 16.8 mg. These three countries received three-fourths of all ethanol shipped in March. Other substantial markets include South Korea (7.1 mg, -67%), Brazil (5.3 mg, -32%), the Philippines (4.6 mg, -5%), and Peru (4.5 mg, +3%). Total U.S. ethanol exports for the first three months of the year totaled 399.3 mg, or 18% less than last year at this time.
For the third consecutive month, the U.S. did not log any meaningful volumes of foreign ethanol imports (6,160 gallons shipped from Canada in March). This marks the smallest volume of total first-quarter imports in four years.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—rebounded by 13% in March to 882,553 metric tons (mt). Two-thirds of U.S. exports were destined for five markets, with the remaining volumes distributed among 31 countries. Shipments to Mexico rebuilt following a sizeable slump in February with 174,928 mt crossing the border. This is equivalent to 20% of total U.S. exports in March and a 42% increase over the prior month. Shipments to Vietnam nearly doubled to a seven-month high of 130,985 mt. Exports to South Korea of 100,771 mt were 24% higher and Turkey’s imports of 84,787 mt saw an 88% improvement. Indonesia imported 80,822 mt, a slight (0.5%) decline from February. Other larger trade partners included Thailand (54,151 mt), Canada (36,827 mt), Japan (28,417 mt), Colombia (25,640 mt), and Morocco (23,331 mt). Total DDGS exports for Q1 2021 totaled 2.58 million mt, which tracks 6% behind last year.
Read the original story here.
May 3, 2021
The U.S. EPA on April 30 filed a motion in the U.S. Court of Appeals for the Tenth Circuit asking the court to vacate and remand three small refinery exemptions (SREs) approved by the Trump administration on Jan. 19, the day before President Biden’s inauguration.
The Renewable Fuels Association on Jan. 20 filed a petition for review and an emergency motion to stay the effectiveness of the three SREs with the Court of Appeals for the D.C. Circuit. The court on Jan. 21 granted the administrative say requested by RFA. Sinclair later confirmed that its Wyoming refineries were the recipients of the three SREs, and the proceedings were moved to the Tenth Circuit Court of Appeals, according to RFA. Sinclair filed a new petition for review on March 15.
In its April 30 motion, the EPA said the agency “did not analyze determinative legal questions regarding whether Sinclair’s refineries qualified to receive extensions of the small refinery exemption under controlling case law established by” the Tenth Circuit Court of Appeals in its January 2020 ruling on SREs, “and there is substantial uncertainty whether, if EPA performed such an analysis, it could grant the petitions submitted by Sinclair.”
In its motion, the EPA notes that Sinclair has already retired the renewable identification numbers (RINs) necessary to demonstrate compliance with its 2018 and 2019 Renewable Fuel Standard obligations. The EPA said that remanding its decision with vacatur “would preserve the status quo ante by ensuring that the RINs that Sinclair already retired to demonstrate its small refineries’ compliance with their 2018 and 2019 compliance obligations remain retired while EPA reconsiders Sinclair’s exemption petitions.”
The RFA has spoken out in support of EPA’s court request. “We strongly support EPA’s request for vacatur and remand of these three midnight-hour exemptions that were handed out to Sinclair in the waning moments of the Trump administration,” said Geoff Cooper, president and CEO of the RFA. “If allowed to stand, these improperly granted exemptions would have erased demand for another 260 million gallons of low-carbon renewable fuels, undermining the rural communities that depend on a strong RFS. We are greatly encouraged by EPA’s actions, which are consistent with President Biden’s commitment to stem the tide of unwarranted refinery exemptions and put the RFS back on track.”
Growth Energy also welcomed news of the EPA’s motion. “EPA is addressing the previous administration’s mishandling of the SRE program, including the midnight-hour grants of three SREs to Sinclair,” said Emily Skor, CEO of Growth Energy. “We are hopeful that EPA will continue to rein in the SRE program to achieve its limited purpose and ensure that the RFS advances the biofuels industry today and in the years to come.”
The American Coalition for Ethanol expressed hope that the EPA plans to get the RFS back on track. “Ahead of Trump EPA’s hasty approval of these three SRE requests, ACE sought assurance from the EPA Inspector General that any last-minute SREs complied with federal law,” said Brian Jennings, CEO of ACE. “We're glad to see EPA is trying to right this wrong by asking the court to vacate the waivers and hope this action is one of many steps the Agency plans to make to get the RFS back on track.”
Read the original story here.
Apr 29, 2021
Claremont, Minnesota – Al-Corn, located in Claremont, MN, is celebrating 25 years of successful operations. Born out of conversations over coffee, at church and in other locations, farmers in the Claremont area sought ways to create a better local market for their corn.
On April 29, 1996 the process of converting corn into ethanol began with the first corn being ground. Originally constructed as a 10 million gallon a year facility, Al-Corn has undergone a series of expansion and modernization projects and now produces 125 million gallons annually. Each year the company grinds over 42 million bushels of corn and can produce 269,000 tons of high protein livestock feed, as well as 44 million pounds of corn oil.
“A key element for success has always been a willingness to engage in strategic partnerships, to work with others in the renewable fuels sector” said Rod Jorgenson, Chairman of the Board for Al-Corn. “This approach is one of the pillars upon which Al-Corn’s success has been built and we will continue to collaborate with others in the industry in order to seize market opportunities as they present themselves.”
Al-Corn’s business model has allowed for development of a successful financial foundation based on strength, investments that add value for members and their communities and decisions that have resulted in competitive returns. The products that come out of Claremont are consumed by refiners, livestock feeders, meat packers and biodiesel producers throughout Minnesota. In addition, Al-Corn ships its products to markets throughout the United States and around the world.
“While some may say we are a ‘first-generation’ ethanol plant, the reality is we are in the forefront of the ethanol industry due to our relentless focus on continuous improvement” said Al-Corn CEO Randall Doyal. “Al-Corn continues to utilize innovative technologies and creativity in order to reduce energy consumption and production costs while at the same time increasing efficiencies and reducing emissions.”
The Al-Corn plant has reduced water consumption to less than 2.2 gallons of water per gallon of ethanol and was the first plant to achieve “zero liquid discharge”. Energy conservation efforts have reduced the plant’s energy use by more than 38% compared to the original plant design.
The many benefits created by Al-Corn continue to benefit our local communities. Al-Corn has raised the local price of corn for every farmer in the area, which has helped support land values and rents in the region. Since its founding, Al-Corn has become a significant economic driver, having paid over $1 billion in corn for processing. The earnings to its owners, the direct and indirect jobs that have been created and the property and other taxes paid tell the true impact of this local success story and how Al-Corn continues to create benefits far beyond the wildest dreams of its original founders.
For additional information regarding Al-Corn Clean Fuel, please visit www.al-corn.com.
Read the original press release here.
Apr 21, 2021
A dozen senators on April 20 sent a letter to U.S. EPA Administrator Michael Regan requesting that he continue his commitment to support farmers and rural communities by upholding and restoring confidence in the Renewable Fuel Standard.
“Restoring the integrity of the RFS and expanding market opportunities for renewable fuels should remain a core part of our plans to assist in the economic recovery of rural America and further reduce emissions from the transportation sector,” the senators wrote. “It is for this reason that when considering the 2021 and 2022 renewable volume obligations (RVO), we also urge you to require conventional renewable fuel volumes of at least 15 billion gallons per year, as required by the statute, along with the court-ordered 500 million gallons illegally waived from the 2016 standards and increase biodiesel, advanced and cellulosic volumes.”
The senators stress that since its inception in 2007, the RFS has bolstered rural economies, diversified the fuel supply, strengthened national security, and reduced greenhouse gas (GHG) emission from the transportation sector. The letter also addresses the challenges the biofuels industry has faced as a result of the COVID-29 pandemic.
“Despite the damage done by the pandemic the RFS remains an effective tool for reducing greenhouse gas emissions and expanding economic opportunity in rural America,” the senators wrote. “In fact, a recent analysis found that the RFS has reduced greenhouse gas emissions by 980 million metric tons since 2008; equivalent to removing 212 million passenger vehicles (roughly four out of five registered automobiles) from the road for an entire year. We request that the EPA update its own modeling to help affirm these emissions reductions.”
The letter also discusses the EPA’s recent move to extend RFS compliance deadlines for 2019 and 2020 and the many small refinery exemptions (SREs) approved by the previous administration, both of which benefit small petroleum refiners. In addition, the senators also address the oil industry’s claim that high renewable identification number (RIN) prices threaten the viability of its refineries, stressing that the EPA has previously noted that “’…high RIN prices do not cause significant harm to refiners,’ because all obligated parties are generally able to recover the cost for compliance.”
“We disagree with the assertation that it is impossible for refiners to comply with the RFS in 2021,” the senators wrote. “Refiners have numerous options at their disposal to comply with the RFS, including by blending more renewable fuels (flex fuel, E15, or biomass-based diesel), purchasing RIN credits from obligated parties that are blending more biofuel than required, utilizing surplus RIN credits, or carrying over their compliance deficit into the next year. Even so, as EPA recently stated in its brief response brief in HollyFrontier v. RFA, ‘creating incentives for market participants to replace petroleum fuels with renewable fuels is a core purpose of the RFS.’”
The senators urge Regan to reject requests to waive or reduce the RVOs under the RFS and “continue his commitment to support farmers and rural communities by upholding and restoring confidence in the RFS.”
The letter is signed by Sens. Amy Klobuchar, D-Minn.; Deb Fischer, R-Neb.; Tina Smith, D-Minn.; Chuck Grassley, R-Iowa; Debbie Stabenow, D-Mich.; Michael Rounds, R-S.D.; Richard Durbin, D-Ill.; John Thune, R-S.D.; Tammy Baldwin, D-Wisc.; Roger Marshal, R-Kan.; Josh Hawley, M-Mo.; and Joni Ernst, R-Iowa.
Growth Energy has issued a statement in support of the letter. “We’re grateful for Senators Klobuchar’s and Fischer’s leadership in underscoring to EPA that restoring integrity to the RFS will assist in the economic recovery of rural America and help the Administration reach its climate goals,” said Emily Skor, CEO of Growth Energy. “EPA should not give in to oil refiners’ claims that renewable volume obligations should be reduced because of COVID-driven demand reductions when EPA itself just recently told the Supreme Court that ‘…creating incentives for market participants to replace petroleum fuels with renewable fuels is a core purpose of the RFS.’
“We are continuing to work with Administrator Regan, the Biden Administration, and our biofuels champions in Congress to ensure the RFS is followed as Congress intended.”
A full copy of the letter can be downloaded from the Growth Energy website.
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Apr 20, 2021
A group of 50 former House and Senate leaders representing 42 states on April 20 sent a letter to Gina McCarthy, President Biden’s national climate advisor, in support of the administration’s dedication to building back better for a green future.
The letter stresses that “truly economy-wide change requires sustained political willpower, which will only come from a 50-state strategy that lifts working families – from coastal cities to farm country.” Fortunately, the letter notes that every state in America is blessed with talented labor and diverse renewable resources capable of supporting a new generation of green jobs.
“The path to success has already been demonstrated in innumerable ways. Iowa is now the leader in wind energy, which provides 42 percent of its electricity – more than any other state,” the leaders wrote. “In California, the Low Carbon Fuel Standard (LCFS) unlocked the transportation potential of farm-based biofuels, which have delivered almost 80 percent of all carbon reductions under the state’s climate agenda. Time and again, we have seen smart policy prove that climate action can be harnessed to rebuild neglected communities.
“That is why, as you work to turn an ambitious agenda into concrete policies, we urge you to ensure that America’s clean energy future offers a diversity of opportunities for America’s blue-collar workers, farmers, and low-income households,” they continued. “The climate is changing fast, and we do not have the luxury of pursuing solutions that will fall victim to shifting political winds. Now is the time to act quickly to deliver for disadvantaged communities, who cannot afford to be left out of the clean energy revolution.”
Read the original story here.
Chippewa Valley Ethanol Company
Apr 15, 2021
Benson, MN - April marks the 25th Anniversary for Chippewa Valley Ethanol Company (general partner to Chippewa Valley Agrafuels Coop). This milestone is something to be celebrated as CVEC continues on its mission to generate distributions to our members by engaging in opportunities to increase the value of agriculture production.
“In 1992 and ’93, the chances of profit were maybe a nickel per bushel or less and I thought, ‘We have to get something to process it and get in the end-game’..... ethanol is not only fuel. It’s food, it’s oil, it’s feed, dried distillers .... for those that believed in it, we’ve done very, very well and gotten good returns.” Janet Lundebrek, CVEC Board Member
This milestone comes in the wake of many accomplishments of the company over the last 25 years, including:
- Reducing energy consumption by 36%
- Grown production capacity to over 50 million gallons per year
- Innovation through diversity of products including distillers grains, corn oil and industrial alcohol
“If the station I pull into has E-85 available, that’s what goes into my vehicle. The more E-85 we can sell, the more profitable the plant can be, the more money they can pay back to their shareholders and more they can try to use to buy more crops to expand and benefit everyone in the community” says Tom O’Leary, CVEC Board Member
About Chippewa Valley Ethanol Company: CVEC was founded 25 years ago by a local farmer and electric co-op manager looking to add value to area corn while stabilizing electricity rates. They had a vision to process corn into ethanol that would impact the environment and surrounding economies in a positive way. Since 1996, CVEC has grown to over 900 member owners, produces 50 million gallons of ethanol per year, reduces energy consumption annually, and is recognized at both state and federal levels for efficient production and leadership in shaping ethanol policy.
Read the original press release here.
Apr 15, 2021
Projected U.S. corn supplies are still waning toward multi-year lows despite dragging ethanol output, though recent production and demand figures along with an upbeat outlook for the summer driving season should instill some optimism over the corn-based biofuel.
In the four weeks ended April 9, U.S. ethanol output averaged 951,000 barrels per day, off the recent highs observed in November and December and 6.6% below the 2017-2019 average for the same period. That departure from normal is a post-pandemic best.
The latest production average reflects a slight downturn from the late March levels, somewhat consistent with seasonal trends for the time of year.
Ethanol output first diverged from typical levels in late March 2020 due to the onset of the coronavirus pandemic, so year-on-year comparisons should no longer be made. The three years prior to 2020 provide a good baseline for “normal” since they contain one strong, one weaker and one average year of production.
With demand recently outpacing production, U.S. ethanol stocks have fallen to seven-year lows for the date. Stocks totaled 20.5 million barrels as of April 9, down nearly 16% in two months. Trends in gasoline demand track well with ethanol output since almost all U.S. gasoline is blended with the biofuel. Last week, finished motor gasoline supplied to the market averaged 8.94 million barrels per day, the second-best week in the virus era. In the latest four weeks, gas demand was just 6% below the pre-virus average, the smallest post-pandemic margin.
Americans are itching to get out this summer after largely missing out on vacations in 2020. Travel spending by Americans last year plunged an estimated 42% and U.S. driving fell by 13% to its lowest level since 2001. U.S. passenger airline traffic dropped 60% to the lightest since 1984.
But the vaccination progress and an increase in travel bookings are already setting up a much busier summer. American Airlines said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations.
By Wednesday, more than 37% of Americans had received at least one dose of a coronavirus vaccine and 23% had been fully inoculated, according to the Centers for Disease Control and Prevention. The pace of vaccinations has been increasing, but 70% of the population could be vaccinated by early June at the current rate.
DEMAND BOOST
Last week, the U.S. Department of Agriculture increased its 2020-21 corn use for ethanol estimate by 25 million bushels to 4.975 billion bushels, up 2.4% from 2019-20’s seven-year low.
On average, that forecast is down 9% from the previous three uninterrupted marketing years starting with 2016-17. Since the start of the current marketing year on Sept. 1, weekly ethanol production has averaged about 9.5% below the same period in those three years.
That indicates that ethanol output does not have to make a huge recovery going forward to meet expectations. In fact, if output through August maintained its recent 6-7% deviation from the previous years, corn use for ethanol could possibly rise by 25 million to 50 million bushels over USDA’s latest 2020-21 peg.
Good prospects for summer travel increase the odds for ethanol output and demand to inch even closer to normal levels into mid-year, though next year’s volumes are subject to greater debate as the economy continues to recover from the pandemic.
USDA in February tentatively slated 2021-22 corn used for ethanol at 5.2 billion bushels, down about 5% from pre-virus levels, though the agency will issue a fresh assessment next month. Any increase in this number will amplify pressure to new-crop corn supplies, which could be even smaller than the seven-year low predicted for 2020-21.
Read the original column here.
Apr 9, 2021
The USDA increased its forecast for 2020-’21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released on April 9. The outlook for feed and residual use was also increased.
The USDA said the forecast for feed and residual use is raised 50 million bushels to 5.7 billion based on corn stocks reported as of March 1, which indicated disappearance during the December-February quarter increased about 6 percent relative to a year ago.
Corn used to produce ethanol is raised 25 million bushels based on the most recent data for the USDA’s Grain Crushings and Co-Products Production report, and the pace of weekly ethanol production during march as indicated by U.S. Energy Information Administration data.
The USDA now predicts 4.975 billion bushels of corn will go to ethanol production in 2020-’21, up from the agency’s March forecast of 4.95 billion bushels. An estimated 4.857 billion bushels of corn went to ethanol production in 2019-’20, down from 5.377 billion in 2018-’19.
The outlook for corn exports is increased by 75 billion bushels based on export inspection data for the month of March that was the largest monthly total on record, surpassing the previously high set in November of 1989.
The season-average farm price is unchanged at $4.30 per bushel, as reported prices through February indicate much of the crop was marketed at lower prices.
Globally, corn production is raised for Pakistan, the EU-27+U.K. and Ecuador, with partly offsetting reductions for Argentina and Indonesia.
Major global trade changes include lower forecast corn exports for Ukraine, based on shipment data to date. Corn imports are raised for Bangladesh. Foreign corn ending stocks are essentially unchanged from last month, mostly reflecting increases for South Korea and Pakistan that are offset by a reduction for Saudi Arabia.
Read the original story here.
April 9, 2021
Today, Governor Tim Walz and supporters of Minnesota’s biofuels industry urged the passage of the Governor’s Biofuels Infrastructure Grant Program budget proposal in order to strengthen small businesses, support farmers, and reduce greenhouse gas emissions.
Minnesota’s COVID-19 Recovery Budget, the Governor’s biennial budget proposal, includes an investment of $2 million per year to fund the Biofuels Infrastructure Grant Program to increase access to ethanol and biodiesel across the state. These grants would give service station owners across Minnesota funding to install the equipment needed to ramp up use of higher blends of biofuels, such as E15 (gas that is 15% ethanol), E30 (30% ethanol), and E80 (80% ethanol).
“Biofuels are critical to Minnesota, not just for helping us meet our climate goals, but to our agricultural and rural economies and the state’s economy as a whole. However, many gas stations don’t have the tanks, pumps, and other equipment needed to safely dispense E15 to consumers,” said Governor Walz. “The biofuels infrastructure grants would help retailers make these upgrades, and in doing so, these grants support our farmers and reduce greenhouse gas emissions across Minnesota.”
Governor Walz highlighted the proposal today at Holiday Stationstore #3829 in New Hope. Owner Chris Robbins received a state grant enabling him to upgrade his facility to offer E15, E30, and E85 fuels.
“E15 has been a huge success for our location,” said Robbins. “It is cheaper for consumers, it supports a home-grown, renewable resource and our Minnesota economy, it reduces our dependence on foreign oil, and it reduces harmful greenhouse gases.”
Conventional corn-starch ethanol can reduce greenhouse gases (GHGs) by as much as 48 percent compared to gasoline; advanced biofuels made from feedstocks such as cellulose can reduce GHGs even more.
Minnesota’s ethanol industry generated $4.4 billion in revenue in 2020 and supports nearly 14,500 jobs – including an estimated 3,600 jobs in agriculture and 3,900 jobs indirectly supported in the corn production supply chain.
Minneapolis, April 6 - The Minnesota Bio-Fuels Association (MN Bio-Fuels) and Chippewa Valley Ethanol Company (CVEC) hosted a virtual plant visit for 20 students from Ridgewater College on April 1.
During the plant visit, the students, from the college’s Animal Nutrition class, were given a virtual presentation on the plant’s operations, facts on the ethanol industry, and shown videos on the ethanol production process and the ethanol industry’s economic impact in Minnesota.
“Corn is a solar panel that exists right outside our windows. It captures carbon, utilizes it to create block-chain sugar and other energy. We convert that back into liquid energy that we can utilize in our transportation fuel,” said Chad Friese, CEO of CVEC during the virtual tour.
He said CVEC sources 17 million bushels of corn from local farms within 20 to 25 miles of the plant each year to produce 50 million gallons of ethanol and 140,000 tons of dried distillers grains with solubles (DDGS) annually.
“This is corn that is grown for feed use and we’re taking that corn, making ethanol and providing a feed product. A corn kernel is about 8 - 10 percent protein. The process concentrates those nutritional parts so DDGS end up at about 27 - 28 percent protein. So, it’s a more efficient feed at relatively the same cost as corn itself. We grind it, we triple its nutrition value and give it back to the feeder,” Friese explained to the students.
In addition, he said CVEC produces industrial grade alcohol for products such as sanitizers and disinfectants.
“This tour provided the students a better idea of the importance of the ethanol industry to Minnesota’s economy and how it reduces harmful greenhouse gas emissions,” said Tim Rudnicki, executive director for MN Bio-Fuels.
Kari Slinden, agriculture technology instructor at Ridgewater College, participated in the virtual tour with her students.
“Ridgewater College Animal Nutrition students benefited from the CVEC virtual tour by learning more about the ethanol producers and by-products produced. Many students feed their livestock DDGS or wet cake products, so it was good to know how they are made and the components in the feed,” said said.
Mar 31, 2021
U.S. ethanol production increased by nearly 5 percent the week ending March 26, according to data released by the U.S. Energy Information Administration on March 31. Fuel ethanol stocks were down more than 3 percent.
Ethanol production for the week ending March 26 averaged 965,000 barrels per day, up 43,000 barrels per day when compared to the 922,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was up 125,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 21.114 million barrels the week ending March 26, down 695,000 barrels when compared to the 21.809 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 26 were down 4.603 million barrels.
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Mar 25, 2021
From electric vehicle chargers (EVC) to biodiesel and ethanol blends, convenience retailers are working to provide customers with the fuel and fuel alternative options they need, while looking forward to increased demand as vaccines roll out.
Ankeny, Iowa-based Casey’s General Stores’ fuel offer varies by location, said Tony Spuzello, manager of commercial fuels for Casey’s. But its new stores offer five products: E15, E85, E10, a premium gasoline option and diesel.
“This will be a standard for Casey’s as we build new locations and look to remodel existing fuel island locations,” Spuzello said. “Biodiesel and higher blends of ethanol are a part of the demand equation and help to offer consumers a choice while also helping them save money compared to non-blend petroleum products.”
In states along the West Coast, he’s seeing a rise in demand for renewable diesel as well as renewable diesel-biodiesel blends. Other states closer to the Midwest are continuing to look at low-carbon programs, he said, which may shift renewable products closer to where they’re produced.
Meanwhile, Sunshine Gasoline President Maximo Alvarez Jr. said the 350-store Florida chain partnered with retail tech company GetUpside to learn more about its customers’ fuel preferences and behaviors and drive new customers. Before the pandemic, GetUpside was driving around 2.5% of all Sunshine’s Chevron volume, he said. Since April 2020, it’s increased to close to 5%.
Ultimately, Sunshine Gasoline aims to stay competitive on price, Alvarez said, as well as customer service and cleanliness.
Summer Season
Brandon Lawrence, founder of Fuel Insight, a data science consultancy, noted a chain’s in-store offer will continue to prove increasingly important this year, too.
“The biggest shift that we’ve seen is that volume is no longer king,” he said. “The pandemic showed that a strong inside offer can be a lot more resilient.”
Casey’s has seen success with its in-store offer, Spuzello said, and its Casey’s Rewards program, both of which help to keep the chain top-of-mind when it comes time to purchase fuel.
“As we recover from COVID, we hope to see fuel demand improve as we get into the summer of 2021,” he said.
Lawrence, too, is cautiously optimistic for a strong summer and overall year ahead.
“We’re at a turning point, a fork in the road,” he said. “Either things are going to get much better, or they’re going to get worse. But I err on the side of bullish on this one. I think we’re going to have a very strong year. I don’t think it’s going to be as strong as 2019, but maybe 3% or 4% down.”
And while the regulatory environment will play a bigger role than ever before, “When it comes to electric,” he said, “I don’t think it’s a matter of if; it’s a matter of when.”
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