In the News
Sep 22, 2022
No matter where you live or how long your commute, gas prices are a concern. The price spikes and fluctuations caused by Russian President Vladimir Putin’s invasion of Ukraine are just the latest evidence that, as a nation, we are far too dependent on foreign oil.
Fortunately, President Joe Biden and our members of Congress have taken decisive steps to lower gas prices and limit our dependence on foreign oil. They have done that by supporting biofuels — fuel grown by America’s farmers.
Not only does this lower gas prices and cut our dependence on Russian energy, supporting American biofuels provides a much-needed boost to our rural communities — putting dollars in the pockets of our farmers and supporting schools, rural hospitals and main street businesses.
Biofuels, specifically those containing ethanol, are becoming increasingly available in the U.S. You can now buy E10, or fuel containing 10% ethanol, at most gas stations. Hower, higher ethanol blends such as E15 and E85 remain less available and more restricted despite the positive impact they have been show to have on gas prices, greenhouse gas emissionsk and productivity.
Biden led the effort to boost biofuels by lifting antiquated restrictions on the sale of E15 for the summer. This emergency move increased the use of renewable biofuels and immediately helped lower gas prices across America.
We have more good news for renewable fuels. The Inflation Reduction Act makes investments in our nation’s biofuels production. This law will further lower gas prices and reduce the federal debt by more than $300 billion.
There has never been a bigger boost for American biofuels than this new law. The Inflation Reduction Act will further lower gas prices by placing 10,000 new E15 pumps at gas stations all across America. This law also provides incentives to companies to produce more biofuels – ethanol and diesel for use in our cars and trucks and even in airplanes.
Year-round E15 sales and new incentives are going to super-charge U.S. agriculture with immense benefits flowing to small towns and cities throughout the Midwest.
But the benefits are not limited to farmers who grow corn or soybeans and the communities in which they live. Every American wins – lower gas prices, reduced greenhouse gas emissions and less dependence on foreign oil. These are common sense plans that will make a real difference in the lives of working Americans.
Bob Thompson is the president of the Michigan Farmers Union.
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Sep 19, 2022
A diverse group of clean fuel stakeholders, including several biofuel producers, on Sept. 19 launched the DriveClean initiative, which is urging lawmakers to create a market-based technology-neutral national Clean Fuel Standard during the 118thCongress that convenes in January.
Supporters of the initiative include Alliance For Clean Energy New York; Advanced Engine Systems Institute; Alto Ingredients; American Coalition for Ethanol; Alder Fuels; Alliance of Automotive Innovation; bp pulse; Calgren Renewable Fuels; Calstart; ChargePoint; Christianson CPAs & Consultants; ClearFlame Engine Technologies; CleanFuture; CleanFuelsNY Coalition; Coalition for Renewable Natural Gas; Electrify America; e-Mission Control; Great Plains Institute; Green Energy Technology; Lion Electric; Low-Carbon Fuels Coalition; Fulcrum Bioenergy; MECA; New York League of Conservation Voters; Paired Power; POET; Propel; Rivian; Renewable Fuels Association and World Energy.
“When you see support for a CFS coming from diverse players like environmental groups, electric vehicle supply chain companies and renewable fuel advocates, it’s notable,” said Chris Miller, a former senior policy adviser in the Senate on energy and environmental matters who is now providing strategic counsel to the group.
As part of its advocacy efforts, the CleanDrive initiative has unveiled a website, DriveClean.us. The group has also published a statement of principles aimed at lawmakers. Among these principles is a call to create a national CFS that complements existing state programs. The group is also urging lawmakers to ensure a future national CFS is technology and fuel neutral by using a life-cycle emissions performance-based approach that will promote innovation and investment across all potential clean fuel types, including electricity, hydrogen, biofuels and others. In addition, CleanDrive encourages lawmakers to focus on growing the low-carbon fuels market, provide long-term market signals, and ensure the use of the best possible science in terms of lifecycle analysis, verification and reporting.
“There are few tools that have proven more effective than Clean Fuel Standards for driving rapid decarbonization, as has been seen in states like California,” said BJ Johnson, co-founder and CEO at ClearFlame Engine Technologies. They are performance-based, technology-agnostic, and fuel-neutral, the perfect combination for unlocking the private sector to invest, innovate and drive down carbon emissions.”
“The biofuels industry applauds the efforts of the DriveClean initiative, which build on the many successes of the federal Renewable Fuels Standard while leveling the playing field for additional home-grown fuels and technology,” said Geoff Cooper, president and CEO of the RFA. “Biofuels will continue to thrive under a technology-neutral Clean Fuel Standard, delivering real emissions reductions, cleaner air and water, job creation and boosting national security. Our members are ready to help push Clean Fuel Standard legislation across the finish line and put the U.S. on an achievable path to meeting near- and long-term decarbonization goals.”
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Sep 16, 2022
With two months remaining in marketing year 2021-'22, the U.S. has exported nearly 1.3 billion gallons of ethanol, up over 20% year-over-year as COVID-19 restrictions continue to lift, and drivers return to the road. Total exports are up in nearly every top-10 market, apart from India and Peru, according to the USDA Foreign Agriculture Service database. The U.S. Grains Council continuously conducts programs, hosts missions and facilitates conversations with stakeholders in these markets, leading to significant gains in Canada, the EU, U.K. and Japan, and continuing to move U.S. ethanol exports forward.
Canada has remained a top market for U.S. ethanol through the past decade. The country is currently blending an average of 7% ethanol nationwide, and so far this marketing year has imported nearly 372 million gallons, up over 80 million gallons from the previous marketing year. Most recently, the Canadian government released its Canadian Clean Fuel Standard, a regulation that anticipates reaching an average ethanol blend of 15% nationwide by 2030, in response to demands for lower-carbon fuels and bolstered by progressive provincial mandates. Momentum will continue into both the near- and long-term future as CFS implementation begins in January 2023.
Another bright spot is exports to the EU and the U.K., which are up more than 60% and 600% year over year, respectively. These two markets represent a shift within the European energy framework as ethanol continues to be a driving factor in decarbonizing the transportation sector. In September 2021, the U.K. began its transition from a 5% ethanol blend to a 10% ethanol blend to reduce annual carbon emissions by nearly 800,000 metric tons. Already averaging an 8% national ethanol blend rate, the U.K.’s move toward E10 could easily call for 100 million gallons of additional demand for U.S. ethanol.
Japan has been one of the most notable success stories for U.S. ethanol this marketing year. The country did not start importing U.S. ethanol until 2018, but since then, Japan has blended ethanol in the form of ETBE, equal to a 1.7 % ethanol blend nationwide. This blend rate lands Japan as a top-10 market for U.S. ethanol. Based on USGC data, exports to Japan have reached 11 million gallons per month, totaling nearly 90 million gallons in marketing year 2021- '22.
Other countries to watch are South Korea, India and Indonesia. South Korea has gradually increased imports of industrial grade U.S. ethanol, moving to the third largest market this marketing year. The country currently has no biofuel policy, but presents the opportunity to become a significant fuel grade market in the near future.
The USGC remains committed to maintaining a robust industrial market that services biobased chemicals and promotes ethanol as a feedstock solution for acetate and acrylate end uses.
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National Association for Convenience & Fuel Retailing
Sep 14, 2022
ALEXANDRIA, Va.—The U.S. Environmental Protection Agency is looking to enact a rule as quickly as possible that would allow the year-round sale of higher-ethanol gasoline, or E15, reports Reuters. EPA Administrator Michael Regan said during remarks at the Growth Energy Biofuels Summit that the agency hopes to finalize the rule before next summer.
The agency has been in talks with Midwestern governors after they asked the EPA earlier this year to allow year-round sales of the blend. Eight states have officially asked the EPA for the change, after a successful legal challenge by oil refiners led to a court overturning an earlier Trump-era E15 rule, reports Bloomberg Government.
The selling mandate of summer blends of gasoline during hotter months was enacted to reduce smog in warm weather, but research reportedly does not show that E15 blend produces more smog in relation to E10, which is sold at gas stations year-round.
In April, the White House announced plans to temporarily allow high-ethanol content gasoline to be sold during the summer in an effort to curb high gas prices. The EPA allowed E15 to be sold between June 1 and September 15.
NACS had asked the EPA to authorize the year-round sale of E15 prior to the announcement.
“This common-sense step would provide much-needed price relief at the pump while enhancing America’s energy security and improving gasoline’s emissions characteristics,” wrote NACS, along with NATSO and SIGMA, in a letter to the EPA. “Allowing the year-round sale of E15 in all parts of the country would help enhance supply and lower prices for all American fuel consumers.”
The Clean Air Act allows the governors to ask the EPA if E15 can be sold all year. The EPA is also working with the Department of Agriculture and Department of Energy on biofuel blending requirements beyond 2022, according to Regan.
In June, the EPA announced biofuel blending mandates for 2022 and the prior two years. The 2022 biofuel blending mandate for 2022 is 20.63 billion gallons, and the EPA retroactively set the volume mandates for 2021 at 18.84 billion gallons and for 2020 at 17.13 billion gallons.
The EPA also denied oil refiners waivers to be exempt from the requirements but said it would allow extra time for small refiners to meet their 2020 blending obligations.
In addition to finalizing the volume requirements, the EPA also finalized a regulatory framework to allow “biointermediates” to be included in the RFS program. Biointermediates are feedstocks that have been partially converted at one facility but are then processed into an RFS-qualified biofuel at a separate facility.
Under the Renewable Fuel Standard (RFS), the EPA can change the way the RFS is administered. Starting next year, the agency will have more authority to set multi-year mandates and make other changes.
Regan said that the agency understands the requirements are of great importance to the biofuels industry. He also said that the agriculture and the biofuels industry will play a key role in helping President Joe Biden meet climate goals, as the electric vehicle market will not be available immediately, Reuters reports.
NACS filed comments with the EPA on its annual RFS obligations. NACS reiterated that the biofuels obligations must be set so that they can reasonably be absorbed and consumed by the market and avoid hitting the “blend wall.”
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Sep 8, 2022
The U.S. Grains Council's (USGC's) Europe, Middle East and Africa office recently hosted an aquaculture program in Morocco as it looks to increase distiller's dried grains with solubles (DDGS) use in the market. The event covered topics including aquaculture feed demand and an integrated model for shrimp and tilapia, among others.
Staff from the U.S. Grains Council’s (USGC) Europe, Middle East and Africa (EMEA) office traveled to Morocco last week to enhance its aquaculture engagement in the region, as it sees the industry as a significant growth opportunity for U.S. distiller’s dried grains with solubles (DDGS).
The majority of the 3.5 million metric tons (MMT) of U.S. feed grains exported to Morocco are used by the poultry and ruminant sectors. However, the growing demand for high-protein foods in Morocco, a trend similarly seen across North Africa more broadly, is creating new opportunities for the domestic aquaculture industry, which simultaneously is creating a new prospect for U.S. feed grain uses within Morocco.
To help in this effort, the Council invited Ronnie Tan, USGC regional aquaculture specialist based in Southeast Asia, to assist with the promotion of the aquaculture program in Morocco.
The office organized a large national aquaculture event on Aug. 31. The event covered many of the hot topics in the industry, such as aquaculture feed demand; outlook, trends and opportunities for DDGS; the integrated model for shrimp and tilapia; current threats to the industry; and solutions DDGS can provide.
“The event gathered a sizable number of participants, most of them from the feed industry, the public and private sector and several future investors in the aquaculture industry,” said Mohamed Salah Bouthour, USGC assistant regional director for Africa. “The audience was thirsty to hear from the USGC experts addressing proteins constraints – specifically regarding aquaculture – and providing insight on the global production outlook with more information on the use of U.S. corn co-products with a focus on nutrition and performance in tilapia and shrimp species.”
Morocco currently produces an estimated 1.4 MMT of seafood annually, making it the largest maritime fisheries producer in Africa and the 25th largest producer globally. While Morocco possesses a relatively strong fisheries industry, contributing to 2.3 percent of gross domestic product annually, overfishing limits the overall productivity and sustainability of the industry. Per capita consumption of fish in Morocco is estimated to range between 10 and 12 kilograms (22.04 and 26.45 pounds) annually, well under the global average of 20 kilograms (44.08 pounds) per person estimated by the Food and Agriculture Organization (FAO).
“The aquaculture market in Morocco is relatively small compared to other countries in the region, especially Egypt, which is the largest tilapia-producing country in the Middle East and Africa area,” Bouthour said. “Morocco’s aquaculture feed production represents only 1,000 metric tons of the total balanced feed produced. The Council will continue to support the growth of the aquaculture animal husbandry industry in the country by empowering Moroccan investors and local feed millers with relevant knowledge and technical skills through educational programming funded by our USDA Section 108 Aquaculture grant.”
Section 108 funds will help the Council initiate a three-year aquaculture project in Morocco to support the development and expansion of the aquaculture sector in the country and support the industry in addressing the bottlenecks and constraints prohibiting enhanced production. Through these efforts, the Council believes the aquaculture industry in Morocco will grow and create opportunities for U.S. DDGS exports to Morocco.
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Sept 8, 2022
U.S. ethanol produced expanded by 2 percent the week ending Sept. 2, according to data released by the U.S. Energy Information Administration on Sept. 8. Stocks of fuel ethanol fell by nearly 2 percent.
U.S. fuel ethanol production averaged 989,000 barrels per day the week ending Sept. 2, up 19,000 barrels per day when compared to the 970,000 barrels per day of production reported for the previous week. When compared to the same week of last year, ethanol production for the week ending Sept. 2 was up 66,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 23.138 million the week ending Sept. 2, down 395,000 barrels when compared to the 23.533 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Sept. 2 were up 2.748 million barrels.
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Aug 31, 2022
U.S. operable biofuel production capacity expanded to 21.58 billion gallons per year in June, up 125 MMgy when compared to May, according to data released by the U.S. Energy Information Administration on Aug. 31. Feedstock consumption was also up.
Fuel ethanol capacity expanded to 17.418 billion gallons per year in June, up 100 MMgy when compared to the 17.318 billion gallons of capacity reported for May. When compared to June 2021, ethanol capacity was up 10 MMgy.
Biodiesel production capacity was at 2.215 billion gallons per year in June, flat with the previous month. When compared to June 2021, biodiesel production capacity was down 215 MMgy.
Capacity for renewable diesel and other biofuels, defined to include renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, reached 1.947 billion gallons per year in June, up 25 MMgy when compared to the previous month and up 933 MMgy when compared to June 2021.
Total feedstock consumption reached approximately 27.238 billion pounds in June, up from both 27.228 billion pounds in May and 26.183 billion pounds in June of last year.
Biofuel producers consumed 24.874 billion pounds of corn in June, down from 25.01 billion pounds in May, but up slightly from the 24.607 billion pounds consumed in June 2021. The EIA also reported 414 million pounds of grain sorghum went to biofuels production in June, up from 232 million pounds the previous month and 36 million pounds during the same month of last year.
Approximately 810 million pounds of soybean oil was used to produce biofuels in June, down from 856 million pounds in May, but up when compared to the 680 million pounds consumed in June of last year. An additional 298 million pounds of corn oil was used to produce biofuels in June, up from both 246 million pounds the previous month and 241 million pounds in June 2021. In addition, biofuel producers consumed 123 million pounds of canola oil in June, up from 121 million pounds in May. The EIA withheld the volume of canola oil used to produce biofuel in June 2021 to avoid disclosure of individual company data.
Biofuel producers consumed 425 million pounds of yellow grease, 153 million pounds of beef tallow, 58 million pounds of white grease and 9 million pounds of poultry fat in June. Consumption was at 467 million pounds, 162 million pounds, 63 million pounds and 9 million pounds, respectively, in May. In June 2021, biofuel producers consumed 290 million pounds of yellow grease, 168 million pounds of beef tallow, 70 million pounds of white grease, 19 million pounds of poultry fat and 5 million pounds of other waste fats, oils and greases.
Biofuel producers also consumed 74 million pounds of feedstock classified as other recycled feeds and wastes, up from 62 million pounds in May and 67 million pounds in June 2021.
Additional data is available on the EIA website.
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Aug 29, 2022
Fuel ethanol consumption in Canada is expected to grow by approximately 8.6 percent this year, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Imports of U.S. fuel ethanol are expected to reach a record 1.5 billion liters (396.26 million gallons).
According to the report, Canada is expected to consume approximately 3.18 billion liters of fuel ethanol this year, up from 2.928 billion liters in 2021, 2.783 billion liters in 2020 and 3.064 billion liters in 2019. Ethanol is expected to account for 6.7 percent of gasoline use in 2022, compared to 6.3 percent last year and 6.2 percent in 2020.
There are currently 12 ethanol plants located in Canada with a combined 1.881 billion liters of production capacity. The number of plants has held steady since 2018, with capacity maintained at its current level since 2020. Capacity use is expected to reach 95.7 percent this year, up from 93 percent in 2021 and 90.3 percent in 2020.
Canadian ethanol plants are expected to produce 1.8 billion liters of fuel ethanol this year, up from 1.75 billion liters in 2021 and 1.698 billion liters in 2020. Production, however, is expected to remain slightly below the 1.891 billion liters produced in 2019.
Corn is the primary feedstock used to produce fuel ethanol in Canada, with 3.7 million metric tons expected to be consumed this year, up from 3.55 million metric tons in 2021 and 3.352 million metric tons in 2020. An additional 560,000 metric tons of wheat and other grains is expected to go to fuel ethanol production this year, up from 540,000 metric tons in 2021 and 552,000 metric tons in 2020.
Canada is expected to export 180 million liters of ethanol this year, including 100 million liters of fuel ethanol. The country exported 178 million liters of ethanol last year, including 108 million liters of fuel ethanol, and 143 million liters in 2020, including 75 million liters of fuel ethanol.
Ethanol imports are expected to reach 1.6 billion liters this year, including 1.48 billion liters of fuel ethanol. Canada imported 1.373 billion liters of ethanol last year, including 1.254 billion liters of fuel ethanol, and 1.256 billion liters in 2020, including 1.164 billion liters of fuel ethanol.
Canadian imports of U.S. fuel ethanol reached a record 1.3 billion liters in 2021, up 8 percent when compared to 2020. Imports of U.S. fuel ethanol are expected to increase to 1.5 billion liters in 2022.
A full copy of the report is available on the USDA FAS GAIN website.
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Aug 26, 2022
The U.S. Grains Council’s Southeast Asia and Oceania (SEA&O) office recently participated in the Clean EDGE Asia business mission, a clean and renewable energy-focused trade mission organized by the U.S. Department of Commerce. The mission aimed to increase U.S. exports of products and services to the Indo-Pacific region to strengthen energy security, enhance energy access, promote open and efficient energy markets and advance clean energy and climate goals in Southeast Asia.
The trade mission made stops in Indonesia, Vietnam and the Philippines – three key markets for USGC’s ethanol-focused programming – where delegates met with government and industry stakeholders in the clean and renewable energy sector. Council representatives were joined by ethanol industry partner Growth Energy for the duration of the trade mission.
“Clean EDGE was an opportune time to further convey to stakeholders around the region the environmental benefits of fuel ethanol and underscore its readiness as a tool to mitigate emissions from the transport sector immediately,” said Caleb Wurth, USGC SEA&O regional director.
“The mission also provided us an opportunity to strengthen alignment with the U.S. Department of Commerce as the department and its sister agencies implement the clean energy pillars of the Indo-Pacific Economic Framework (IPEF). The Council sees IPEF as an additional strategic tool to promote ethanol use across Southeast Asia.”
The three countries visited are the highest priority markets for USGC ethanol programming in Southeast Asia given their consumption volumes and appetite to mitigate emissions from the transport sector.
The Philippines currently consumes more than 1.5 billion gallons of gasoline per year and is a regional leader in fuel ethanol use, having maintained an E10 mandate since 2011. U.S. ethanol currently supplies roughly 40 percent of the country’s annual ethanol demand of about 170 million gallons per year. Regulators are now evaluating an expansion of the E10 mandate to an E15 or E20 discretionary ceiling in a bid to further mitigate transport emissions and create more space for retailers to generate savings for consumers.
Indonesia, the fourth most populous country in the world, consumes around 10 billion gallons of gasoline per year and is primed to become one of the largest gasoline markets in the world based on its current growth rate. The Council is working with stakeholders to implement a new E5 pilot project in major metropolitan areas that requires some 6.6 million gallons of ethanol. This is in addition to the three percent ethanol allowance in imported gasoline being maximized due to the Council’s work to remove a ban on ethanol in Indonesia’s fuel specification.
Vietnam consumes close to 3 billion gallons of gasoline each year, with demand forecasted to grow at a double-digit rate over the next five years. U.S. fuel ethanol, which supplies a significant portion of existing demand in Vietnam, can further support this growth by helping the country meet commitments to emissions reduction and reduce fuel costs for its growing middle class. Presently, regulators are evaluating the expansion of country’s E5 RON 92 mandate.
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Aug 24, 2022
U.S. fuel ethanol production capacity was up slightly the week ending Aug. 19, according to data released by the U.S. Energy Information Administration on Aug. 24. Stocks of fuel ethanol were up nearly 2 percent.
Fuel ethanol production averaged 987,000 barrels per day the week ending Aug. 19, up 4,000 barrels per day when compared to the 983,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Aug. 19 was up 54,000 barrels per day.
Stocks of fuel ethanol expanded to 23.807 million barrels the week ending Aug. 19, up 361,000 barrels when compared to the 23.446 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Aug. 19 were up 2.584 million barrels.
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Aug 23, 2022
As of January 1, 2022, biofuel plant production capacity in the United States reached 21 billion gallons per year (gal/y) from 275 facilities. More than four-fifths of U.S. biofuel production capacity was for fuel ethanol.
Of the 13 states with the most fuel ethanol production capacity, 12 are located in the Midwest. The three states with the most production capacity—Iowa, Nebraska, and Illinois—contain half of the nation’s total ethanol production capacity. As of January 1, 2022, U.S. fuel ethanol production capacity totaled 17.4 billion gal/y, as reported by 192 producers, a 0.2 billion gal/y decrease since the beginning of 2021.
Producers of another biofuel, biodiesel, operate 72 plants nationwide. In January 2022, U.S. biodiesel production capacity totaled 2.3 billion gal/y, a 0.2 billion gal/y decrease from January 2021. More than half of U.S. biodiesel production capacity is in the Midwest, primarily in Iowa, Missouri, and Illinois. The remainder is mostly located on the Gulf and West Coasts.
In another, much smaller, category of biofuels production, 11 renewable fuel producers were operating in the United States as of January 1, 2022. The facilities produce renewable diesel fuel, renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline, and other biofuels and bio intermediate products. Their combined production capacity totals 1.8 billion gal/y, more than double what it was at the beginning of 2021.
Fuel ethanol producers accounted for 81 percent of U.S. total biofuels production capacity, followed by biodiesel producers at 11 percent, and by renewable diesel fuel and other biofuels producers at 8 percent. On August 8, we released our three annual plant production capacity reports: 2022 Fuel Ethanol Production Capacity, 2022 Biodiesel Plant Production Capacity, and 2022 Renewable Diesel Fuel and Other Biofuels Plant Production Capacity. Respondents report biofuels production capacity data in these publications. The three annual reports contain our most up-to-date estimates of the plant production capacity for the U.S. biofuels industry. The reports include biofuels production capacity for operating plants as of January 1, 2022. The names of the reporting plants are organized by state and region.
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Aug 22, 2022
The USDA is scheduled to open a new $100 million, 90-day application window for the Higher Blends Infrastructure Incentive Program on Aug. 23, according to a document published in the Federal Register on Aug. 22.
The HBIIP is a competitive grant program that aims to significantly increase the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. Investments made under HBIIP aim to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure. Under the program, higher blends include ethanol blends of greater than 10 percent and biodiesel blends of greater than 5 percent.
Grants made under the program can cover up to 50 percent of total eligible project costs, up to $5 million. According to the notice, the USDA has set a targeted assistance goal that aims to make approximately 40 percent of funds available to applicants that own 10 or fewer fueling stations/locations. The USDA may also target applicants located in markets that are currently underserved by higher blends and give preference to first time applicants to the HBIIP program, according to the notice.
The USDA has already made three rounds of awards through the HBIIP. The agency awarded $22 million under the program to 40 recipients in 14 states in October 2020, $18.4 million to 23 recipients in 20 states in April 2021, and $26 million to support 34 projects located in 23 states in August 2021.
A full copy of the notice can be downloaded from the USDA website.
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Minneapolis, Aug 19 - The Minnesota Bio-Fuels Association (MN Bio-Fuels) and KS95 FM rewarded drivers who chose E15 during an hour-long promotion at the Holiday station on Old Hudson Road in St Paul earlier today.
The promotion was held from 12 pm to 1 pm. Drivers who fueled up with E15 during the promotion won prizes such as $20 in cash, tickets to Minnesota United, tickets to the St Paul Saints, gift cards to Applebee’s and KS95 merchandise.
MN Bio-Fuels staff and KS95’s personality, Greg “Hutch” Hutchinson were at the station during the promotion to educate drivers on the benefits of fueling up with E15.
“More and more Minnesotans are choosing E15. In the first six months of this year, 47.16 million gallons of E15 was sold in Minnesota, 17 percent higher than the volume sold over the same period in 2021,” said Brian Kletscher, president of MN Bio-Fuels.
Today’s event was the 10th time MN Bio-Fuels and KS95 FM have teamed up this year at a gas station in the Twin Cities metro to promote E15.
Aug 16, 2022
President Joe Biden on Aug. 16 signed the Inflation Reduction Act into law, calling the legislation the “biggest step forward in climate—ever” and stressing it will allow the U.S. to boldly take addition steps towards meeting its climate goals.
The expansive legislative package addresses a wide range of issues, including inflation reduction, domestic energy production and manufacturing, carbon emissions reductions, Medicare and health care costs, and tax loopholes.
Of interest to the biofuel and bioenergy industries, the newly signed law establishes new tax credits for sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen. It also extends several existing tax credits that benefit transportation biofuels, such as renewable diesel and biodiesel, and includes funding for biofuel infrastructure development. Other provisions of the bill support the production of biogas- and biomass-based electricity and offer tax incentives for homeowners to install biomass-fired residential heating appliances. The bill also extends and expands the Section 45Q tax credit for carbon capture and storage (CCS).
The new SAF tax credit starts at $1.25 per gallon for SAF that achieves a 50 percent greenhouse gas (GHG) reduction when compared to a baseline fossil fuel. An additional 1 cent per gallon is available for each percentage point by which the lifecycle GHG emission reduction of the fuel exceeds 50 percent. The tax credit is capped at $1.75 per gallon. The new also establishes a competitive grant program in support of alternative aviation fuels and low-emission aviation technologies. In part, the program would provide grants to eligible entities to carry out projects located in the U.S. that produce, transport, blend or store SAF. Nearly $250 million in funding would be available to support SAF projects under the program.
The newly established Clean Fuel Production Tax Credit is a technology-neutral tax credit that aims to support the production of low-emissions transportation fuel. It will apply to transportation fuel produced and sold in 2025, 2026 and 2027. To qualify, the fuel will have to achieve a GHG reduction of approximately 40 percent when compared to diesel and meet other requirements.
The new law also establishes a Section 45V production tax credit (PTC) for clean hydrogen produced at qualified facilities that begin construction before the end of 2032. The credit will apply to hydrogen produced after the end of 2022. Depending on the specific project, the credit could range from 12 cents per kilogram to $3 per kilogram, according to the bill text.
The Inflation Reduction Act also extends several existing bioenergy and biofuel tax credits. The $1 per gallon blends tax credit for biodiesel and renewable diesel is extended through the end of 2024. It also extends the 50-cent per gallon alternative fuels tax credit, the second-generation biofuel income tax credit, and the alternative fuel vehicle refueling property credit.
In addition, it appropriates $500 million to support the development of biofuel infrastructure, including infrastructure improvements for blending, storing, supplying or distributing biofuels; installing, retrofitting or upgrading fuel dispensers to supply higher blends of biofuels; and for building and retrofitting home heating oil distribution centers to supply biofuels. The new law also includes an estimated $18 billion in support of climate-smart agriculture, which will benefit biofuel producers through the production of lower-carbon feedstocks.
For renewable electricity, the Inflation Reduction At extends the Section 45 production tax credit (PTC), which benefits qualified biogas, open-loop biomass and closed-loop biomass facilities, to qualified facilities that begin construction before Jan. 1, 2025. For home heating, the it extends and modifies of the Section 25 tax credit, which, in part, supports the installation residential biomass-fired stove and boilers. The tax credit for these residential appliances is capped at $2,000.
The Inflation Reduction Act supports CCS projects through an extension and modification of the Section 45Q tax credit. It extends the Section 45Q tax credit to any carbon capture, direct air capture or carbon utilization project that begins construction before Jan. 1, 2033. It also increases the value of the credit for industrial facilities and power plants that capture their carbon emissions to $85 per metric ton of CO2 stored in secure geologic formations, $60 per ton for the beneficial utilization of captured carbon emissions, and $60 per ton for CO2 stored in oil and gas fields. For direct air capture technologies, the credit is increased to $180 per metric ton for projects that store captured CO2 in secure geologic formations, $130 per ton for carbon utilization, and $130 per ton for CO2 stored in oil and gas fields.
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Aug 9, 2022
The U.S. Energy Information Administration maintained its forecasts for 2022 and 2023 fuel ethanol production in its latest Short-Term Energy Outlook, released Aug. 9. The agency also maintained its forecast for 2022 and 2023 ethanol consumption.
The EIA currently predicts U.S. fuel ethanol production will average 1.02 million barrels per day this year, falling to 1 million barrels per day next year. Production averaged 980,000 barrels per day in 2021.
On a quarterly basis, ethanol production is expected to average 1.01 million barrels per day during the third quarter of this year, expanding to 1.02 million barrels per day during 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.
The EIA currently predicts ethanol blending will average 910,000 per day in 2022 and 920,000 barrels per day in 2023. Ethanol blending averaged 910,000 barrels per day last year.
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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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