In the News
Oct 26, 2020
The U.S. Grains Council conducted a webinar for producers in the Dominican Republic and Educator in mid-September to provide an update on U.S. corn and sorghum production and offer the latest information on the benefits of U.S. distillers dried grains with solubles (DDGS) for feed, poultry and swine production. The webinar also introduced distiller’s corn oil (DCO) as a potential new feed ingredient.
“We are working to build confidence in these potential buyers,” said Ana Ballesteros, USGC marketing director for Latin America. “Increasing DDGS awareness and understanding of its benefits when used in poultry and swine formulas is needed to generate a willingness to buy.”
Poultry and swine producers in the Dominican Republic do not currently use DDGS. In February 2020, the Council’s staff in Latin America set a strategy to engage with producers and purchasing groups, specifically targeting those with the volume capacity to import DDGS in combination shipments with corn and other U.S. agricultural products.
The recent webinar included 10 speakers, including five U.S.-based consultants covering the nutritional benefits of corn, sorghum, DDGS and DCO, handling and management practices, and logistics of the Latin American market.
Feed, poultry and livestock producers who are members of AFABA, an Ecuadorian poultry and livestock producers association, were also invited to attend the event after the organization reached out to the Council in search of technical information on DDGS.
“The array of topics allowed for broader discussions with markets where we feel these U.S. products could make a difference in our customers’ bottom lines,” Ballesteros said.
The Council will continue to work with producers in both countries to help them gain a deeper understanding of the benefits of DDGS and how best to formulate its use for different species. Follow up one-on-one consultations with participating companies and virtual tours of U.S. production are next steps in this engagement.
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Oct 21, 2020
Greenfield Global Inc., Canada’s largest fuel ethanol producer, announced today that it will acquire the 182 million litre (48 million gallon) per-year Corn Plus ethanol facility in Winnebago, Minnesota.
The Corn Plus facility makes ethanol for the purpose of blending into gasoline and has been shuttered since September 2019.
“This ushers in a new era of North American production for Greenfield,” said Howard Field, President & CEO of Greenfield Global.” We are excited to join producers in the United States in making the world’s cleanest and most accessible biofuel. The addition of Corn Plus to our biofuels portfolio complements our strategy of being a leading producer of renewable energy solutions and enhances our ability to service low-carbon fuel markets more effectively and efficiently.
”North American fuel markets will continue to operate as an increasingly interconnected supply chain given the market challenges of COVID-19, coupled with the recent coming into force of the United States-Mexico-Canada Agreement (USMCA). Greenfield Global’s addition of a United States based-corn ethanol facility provides the Company with a larger and more diverse geographic footprint from which to operate. Greenfield Global purchased the Corn Plus facility in a receivership process. The Company expects to produce fuel ethanol and its co-products once a startup plan is established.
“We look forward to welcoming the Corn Plus team to Greenfield, re-establishing a market for Minnesota corn growers, and working closely with the community to bring jobs back to Winnebago.” said Jean Roberge, EVP & Managing Director of the Greenfield Global Renewable Energy Business Unit. “We are confident that our best practices, paired with the technology adaptation experience of our combined staff, will produce Greenfield’s industry-leading, low carbon intensity biofuels from this facility.
”Roberge added, “Biofuels are the key to lowering greenhouse emissions in the transportation sector. This investment in our ethanol portfolio, combined with the expansion of our biorefinery in Varennes, Quebec, will significantly increase our ability to supply renewable fuel needed to help preserve the health of our planet.”
Douglas Dias, Greenfield Global’s VP Sales and Market Development, stated “Greenfield’s fuel ethanol customers will benefit from this new supply of low carbon ethanol. We are excited to offer our existing customers more resilience and broader supply options to meet their increasing demands, while serving new fuel customers in the United States.”
About Greenfield Global Inc.
Greenfield Global provides high-value, mission-critical raw materials, ingredients and additives that are vital to businesses, improve people’s lives, and preserve the health of the planet. Greenfield is the largest ethanol producer in Canada and owns and operates four ethanol distilleries, five specialty chemical manufacturing and packaging plants, and three next generation biofuel and renewable energy R&D centers in Canada and the United States. Founded in 1989, Greenfield continually develops more efficient and sustainable technologies and products while shrinking its own carbon footprint. From start-ups to the largest brands in the world, customers trust Greenfield’s extensive portfolio of premium products, regulatory expertise, and industry-leading service. Under its Pharmco and Commercial Alcohols brands, Greenfield delivers hundreds of products to thousands of Life Science, Food, Flavor, Fragrance, and Beverage customers in more than 50 countries worldwide.
To learn more, visit www.greenfield.com
Oct 22, 2020
With more than 15 million cars registered in the state, California has almost twice as many vehicles on the road than any other state in the nation, which makes it the number one market for growing domestic ethanol demand.
To that end, the National Corn Growers Association (NCGA), state corn organizations, ethanol groups and the auto industry, are working with the California Air Resources Board (CARB) to conduct vehicle testing using 15 percent ethanol (E15) at the University of California at Riverside (UCR). The Renewable Fuels Association, Growth Energy, and the United States Council for Automotive Research (USCAR) are partnering on the study.
The testing will demonstrate the environmental benefits and compatibility of E15 in selected makes and models of vehicles. This process will help pave the way for sales of E15 and higher blends of ethanol in California.
“With the scope of research agreed upon and contracts signed, E15 testing in California can move forward,” said JR Roesner, Indiana farmer and Ethanol Action Team (ETHAT) member. “If we can achieve E15 as the base fuel in California, based on estimated total gasoline usage in the state in 2015, the potential market opportunity would be roughly 750 million gallons of ethanol or 260 million bushels of corn.”
Tests will be conducted on 20 late-model vehicles to measure tailpipe and evaporative emissions. Testing a broad sample of makes, models, and technology levels with both E10 and E15 blends will provide CARB with the necessary information to permit the sale of E15 in California.
“Motor gasoline volatility is varied throughout the year to ensure good cold-start and drivability while also controlling evaporative emissions,” said Brian West, NCGA contributor and former Group Leader for the Fuels and Engines Research Group at the National Transportation Research Center at Oak Ridge National Laboratory. “Summer fuel is used in certification tests, and we wanted to use retail fuel for this program. If the refiners had begun the changeover to fall/winter gasolines, we would have been significantly delayed either waiting for 2021 summer fuel or having to source a specialty fuel, which is very expensive and also has very long lead times.”
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Oct 15, 2020
U.S. fuel ethanol production increased by nearly 2 percent the week ending Oct. 9, according to data released by the U.S. Energy Information Administration on Oct. 15. Stocks also increased by approximately 2 percent.
U.S. ethanol production increased to an average of 937,000 barrels per day the week ending Oct. 7, up 14,000 barrels per day from the average of 923,000 barrels per day reported for the previous week. When compared to the 971,000 barrels per day produced during the same week of 2019, production was down 34,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.
Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks for fuel ethanol increased to 20.008 million barrels the week ending Oct. 9, up 336,000 barrels when compared to the 19.672 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 2.053 million barrels.
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CoBank - The Quarterly
October 2020
The U.S. ethanol sector continued to recover during the quarter to a new baseline level equating to 85%-90% of pre-COVID demand. Based on EIA data on an annualized basis, weekly production averaged 14.2 billion gallons for the third quarter, 89% of the first quarter’s average production of 15.9 billion gallons.
For a representative Iowa dry milling fuel ethanol plant, industry operating margins (defined as return on operating costs but before capital costs) also improved, averaging $0.21 per gallon, up from break-even during the first quarter. The improvement occurred as supply and demand became more balanced, and active producers benefited from better productivity.
New developments support the industry as we head into the November elections. First, the Trump administration is removing E15 federal roadblocks. The recently-introduced Next Generation Fuels Act would enable the sale of E15 fuel using E10 pumps, subject to state regulations. Second, EPA has promised to deny numerous oil refineries’ ethanol blending exemption requests. Third, Brazil has agreed to duty-free imports of U.S. ethanol for 90 days. Fourth, there is potential for financial relief to the biofuel sector in the next government spending program. Fifth, perhaps most importantly, supply and demand remain in relative balance at current production levels.
We maintain a stable industry outlook over the next two quarters for U.S. ethanol, assuming that the economy does not experience a double dip. Our outlook assumes continued high unemployment levels and below average consumer miles driven. Our opinion could become more bullish should new coronavirus cases drastically decline and/or an effective COVID-19 vaccine is rapidly produced and widely administered.
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Oct 7, 2020
U.S. fuel ethanol production expanded by nearly 5 percent the week ending Oct. 2 while weekly ethanol ending stocks fell slightly, according to data released by the U.S. Energy Information Administration on Oct. 7.
U.S. ethanol production increased to an average of 923,000 barrels per day the week ending Oct. 2, up 42,000 barrels per day from an average of 881,000 barrels per day the previous week. When compared to the 963,000 barrels per day produced during the same week of 2019, production was down 40,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.
Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol fell to 19.672 million barrels the week ending Oct. 2, down 19,000 barrels when compared to the 19.691 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 1.552 million barrels.
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Oct 7, 2020
The U.S. exported more than 100.65 million gallons of ethanol and 1.02 million metric tons of distillers grains in August, according to data released by the USDA Foreign Agricultural Service on Oct. 6. Exports of both products were down from the same month of last year.
The 100.65 million gallons of ethanol exported in August was up from the 74.04 million gallons exported in July, but down from the 124.79 million gallons exported in August 2019.
The U.S. exported ethanol to nearly four dozen countries in August. Canada was the top destination for U.S. ethanol during the month at 35.98 million gallons, followed by India at 10.45 million gallons, and Nigeria at 9.79 million gallons.
The value of U.S. ethanol exports was at $163.82 million in August, up from $131.77 million in July, but down from $205.37 million in August 2019.
Total ethanol exports for the first eight months of 2020 reached 905.41 million gallons at a value of $1.57 billion, compared to 1.01 billion gallons at a value of $1.6 billion during the same period of 2019.
The 1.02 million metric tons of distillers grains exported in August was down from both the 1.08 million metric tons exported in July and the 1.15 million tons exported during August of last year.
The U.S. exported distillers grains to approximately 40 countries in August. Mexico was the top destination at 138,817 metric tons, followed by Vietnam at 131,854 metric tons and South Korea at 111,048 metric tons.
The value of U.S. distillers grains exports reached $208.73 million in August, down from $227.86 million in July and $237.37 million in August 2019.
Total distillers grains exports for the first eight months of 2020 reached 7.08 million metric tons at a value of $1.5 billion, compared to 7.36 million metric tons at a value of $1.54 billion during the same period of last year.
Additional data is available on the USDA FAS website.
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Sep 29, 2020
Jobs in the renewable energy sector reached 11.5 million globally in 2019, according to a report released by the International Renewable Energy Agency (IRENA) on Sept. 29. Bioenergy accounted for 3.58 million jobs, up from 3.18 million in 2018.
According to the report, liquid biofuels accounted for 2.475 million jobs, while solid biomass accounted for 764,000, biogas accounted for 342,000 and municipal and industrial waste accounted for 39,000.
IRENA’s data shows global biofuels production increased 5 percent in 2019, principally driven by a 13 percent expansion of biodiesel. Ethanol production increased by 2 percent. Indonesia overtook the U.S. and Brazil to become the world’s largest biodiesel producer, the report noted.
The majority of the 2.475 million liquid biofuel jobs were in the agriculture sector. Processing of feedstock into fuel accounts for fewer jobs, although those jobs generally required higher technical skills and offer better pay.
Ten countries accounted for 90 percent of global biofuel jobs, led by Brazil at 34 percent, followed by Indonesia, the U.S., Columbia, Thailand, Malaysia, China, Poland, Romania and the Philippines.
In the U.S., total renewable energy jobs were estimated at 755,600 last year. Liquid biofuels accounted for approximately 297,000 of those renewable energy jobs.
The report cites data showing U.S. biodiesel output fell by approximately 7 percent in 2019 to about 6.5 billion liters (1.71 billion gallons). IRENA said its estimate suggests U.S. biodiesel jobs fell to approximately 67,300 in 2019. U.S. ethanol production also fell last year, reaching 59.8 billion liters. U.S. ethanol employment for 2019 was estimated at 299,600 jobs.
A full copy of the report can be downloaded from the IRENA website.
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Sep 28, 2020
As Congress and the administration continue negotiations on another potential COVID-19 relief package, a new study by university economists finds that ethanol producers will experience roughly $8 billion in losses this year due to the pandemic’s impact on world fuel markets. The study, conducted by economists from the University of Florida and Arizona State University, was published recently in the Journal of Agricultural & Food Industrial Organization.
“The COVID-19 pandemic in 2020 had a major negative impact on U.S. ethanol, gasoline, and oil prices and production,” the authors found. “COVID-19 has had a major impact on ethanol production. The producer loss due to COVID-19 is $7 billion.”
The estimated economic loss grows to a range of $7.9 to $8.6 billion when unemployment effects are included. The authors acknowledge that those estimates likely “understate the cost of COVID-19” to the ethanol industry because the impact of the pandemic on co-product output, demand and prices is not included.
Renewable Fuels Association President and CEO Geoff Cooper said the new study corroborates the findings of an RFA analysis published in July, which found pandemic-related losses could be $7 billion or more in 2020. According to RFA, the study also underscores the importance of ensuring ethanol producers are not again left out of any stimulus package that may move forward in the weeks ahead.
“This new, independent study confirms what has already been made painfully clear to the 350,000 men and women whose jobs are supported by the ethanol industry,” Cooper said. “The COVID-19 pandemic caused fuel demand to plummet and forced scores of ethanol plants to shut down, resulting in steep economic losses for the industry. While market conditions have improved since the spring, the ethanol industry is still struggling to fully recover from the pandemic, and ethanol producers across the country remain under financial stress.”
Cooper urged lawmakers and the administration to ensure emergency relief for ethanol producers is included in any forthcoming coronavirus aid deal.
“There is strong bipartisan support for providing assistance to renewable fuel producers in both the House and Senate,” Cooper said. “The HEROES Act passed by the House in May included emergency relief provisions for ethanol producers, and a similar measure was introduced in the Senate by Sens. Grassley and Klobuchar. We remain hopeful that a fourth COVID-19 aid package, with emergency relief for ethanol producers, will finally be pushed over the goal line in the weeks ahead.”
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Sep 24, 2020
Rep. Cheri Bustos, D-Ill., on Sept. 24 introduced the Next Generation Fuels Act, a bill that establishes a minimum octane standard for gasoline and requires sources of added octane value to reduce carbon emissions by at least 30 percent when compared to baseline gasoline. The bill would also limit the use of harmful aromatics in meeting the new high-octane standard, as well as in current-market gasoline.
To accomplish its goals, the legislation would require the U.S. EPA to create a new 98 research octane number (RON) standard, limit reliance on toxic aromatic hydrocarbons, and update fuel and infrastructure regulations to expand the availability of mid-level ethanol blends. It would ensure parity in the regulation of gasoline volatility, correct the R-factor used in fuel economy testing, provide for an E30 fuel waiver, replace the EPA’s flawed MOVES model, and restore meaningful credit toward compliance with fuel economy and emissions standards for the production of flex fuel vehicles.
“For the last three and a half years, we have been forced to fight battle after battle and face this Administration’s broken promise after broken promise to ensure our country is meeting the full potential of biofuels,” Bustos said. “The Next Generation Fuels Act looks toward the future to make sure we bring an environmental lens to biofuels production, in order to increase demand while reducing carbon emissions.”
Representatives of the biofuels industry have spoken out in support of the bill.
Growth Energy is applauding Bustos for her push for high-octane, low carbon fuels. “There has never been a more urgent need to adopt higher octane, low-carbon ethanol blends in America’s fuel supply, as they are key to achieving clean, healthy air,” said Emily Skor, CEO of Growth Energy. “We applaud Congresswoman Bustos for charting a path forward that will unleash clean, affordable ethanol to drive decarbonization in our nation’s transportation fleet and save consumers money at the fuel pump.”
The Renewable Fuels Association called the bill the beginning of an exciting new era in transportation fuels policy. ““The Next Generation Fuels Act of 2020 provides a bold and innovative approach to reducing carbon emissions, improving engine efficiency and performance, protecting human health, and removing the arcane regulatory roadblocks that have hindered the expansion of cleaner, greener liquid fuels,” said Geoff Cooper, president and CEO of the RFA. “By establishing the roadmap for an orderly transition to high-octane, low-carbon fuels, this landmark legislation begins an exciting new era in transportation fuels policy. As the world’s top supplier of clean, affordable, low-carbon octane, the U.S. ethanol industry proudly and enthusiastically supports this legislation. We thank Rep. Bustos for her thoughtful leadership and determined efforts to craft and introduce this bill, and we look forward to working together to make this bold vision a reality.”
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Sep 22, 2020
“Because of the price of oil collapsing and people not driving…and also these waivers that have been given out by the administration, which should have never been considered,” Peterson said during the Agri-Pulse Ag and Food Policy Summit on Monday. “If we had 15 billion gallons we wouldn’t be having the kind of problems we’re having in the ethanol industry.”
Peterson would like to see producers receive 45 cents a gallon based on their January to April production, or from 2019 if they were shut down. “And that needs to happen too or we’re going to lose some of these plants.” he said.
However, the chairman from Minnesota expressed concern that getting back into the habit of ad hoc disaster aid for agriculture could be detrimental to farm policy going forward.
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Sep 16, 2020
Novozymes today announced the launch of Fiberex®, a comprehensive platform based on novel enzymes and yeast strains to convert corn fiber into ethanol. Fiberex® is specifically aimed at breaking down tough fibers in the corn, providing producers with greater operational flexibility. The technology converts a low-value by-product into high-value, low-carbon fuel while also enabling the production of significantly more corn oil. "Through advanced biology, biofuel producers looking to diversify can now unlock new markets and avenues of profitability,” says Brian Brazeau, Novozymes’ vice president for bioenergy. “Working with Novozymes and our expert analytics and engineering partners, producers can use Fiberex® technology to transform their corn fiber, typically only used for animal feed, into low-carbon, high-value cellulosic ethanol.” Novozymes is the technology leader in fiber conversion today, enabling new revenue for biofuels producers from low-carbon credits such as in California and EPA’s cellulosic RIN credits. Through Fiberex®, Novozymes is collaborating with the biofuel industry to further expand the boundaries of corn-based ethanol – literally breaking down some of the barriers between what is considered conventional biofuels and advanced biofuels.
Converting more of the tough feedstock
Low-carbon fuels are a crucial part of transportation – enabling domestic energy, a cleaner environment, and better livelihoods for rural America and beyond. Most ethanol is made from the starch in corn kernels, whereas the fiber is much more difficult to use, being a complex matrix consisting of cellulose, hemicellulose, starch, protein, oil, and minerals. The cellulose is rigid and partially crystalline in form while the hemicellulose is highly branched and amorphous. Novozymes’ Fiberex® enzymes are specifically designed to break down this complex matrix – resulting in more corn oil and converting the fiber into simple sugars that are easily converted into ethanol. “Ethanol producers know their business best! We now make available industry-leading technology and are putting our bioinnovation in top gear to convert every last pound of fiber in corn,” says Brian Brazeau. “Realizing the importance of fiber-based ethanol in reducing our carbon footprint, improving co-products, and increasing value for producers, we have embarked on a mission to develop biology that can convert all of this tough feedstock into low-carbon ethanol. It is time to reimagine ethanol.” As part of the platform announcement, Novozymes is also launching the first Fiberex® products: Fiberex R1, a technology specifically designed to provide maximum ethanol in separate fiber-to-ethanol processes, and Fiberex F1, a cellulase enzyme designed to provide fiber conversion for in-process technologies. Additional solutions, to launch in 2021, are in proof-of-concept trials now. More information on Fiberex® can be found here.
Read the original story here.
Sep 15, 2020
(Washington, D.C.) - Today, the House Committee on Energy and Commerce released the text of legislation containing the provisions of House Agriculture Committee Chairman Collin Peterson’s Renewable Fuel Standard Integrity Act. The House is expected to consider H.R. 4447 the week of September 21st.
“In recent years, the Environmental Protection Agency has granted dozens of small refinery exemptions, waiving billions of gallons of biofuel from RFS blending requirements. The Agency granted these harmful waivers with little transparency, concealing details from the public about which refiners are being granted waivers and why. The provisions of my bill will require EPA to pull back the curtain and show the American people how they justify granting these waivers that have greatly impacted profitability for biofuels producers and farmers across the country.”
The provisions included in H.R. 4447, Clean Economy Jobs and Innovation Act would set an annual deadline for refiners to request exemptions from the Renewable Fuel Standard and require EPA to publicly release the name of refiners requesting a waiver, the number of gallons requested to be waived and the number of gallons of biofuel that will not be blended as a result of the waiver. These provisions mirror the provisions of H.R. 3006, the Renewable Fuel Standard Integrity Act, with adjustments to address business confidentiality concerns that were raised by members of the House Committee on Energy and Commerce.
Congressman Peterson is a co-chair of the Congressional Biofuels Caucus, a bipartisan group of Members of Congress who advocate for homegrown renewable fuel policies that boost farmer incomes and reduce dependence on foreign oil.
Read the original press release here.
Lallemand Biofuels & Distilled Spirits
Sep 14, 2020
Lallemand Biofuels & Distilled Spirits (LBDS), a global supplier of innovative fermentation ingredients, is proud to announce the introduction of their next generation advanced yeast and enzyme platform called ConvergenceTM.
The ConvergenceTM platform has been developed to generate increased profitability for North American biofuel producers by providing a step change improvement in ethanol production cost economics. The platform combines a new yeast that generates virtually all the glucoamylase (GA) required for fermentation combined with a small amount of complementary exogenous enzyme.
ConvergenceTM has been created through the development of new biotechnology that enables yeast strains to express much higher levels of GA than was previously possible. Now all of the enzymes required for fermentation can be delivered through two components:
TransFerm® CV5 is a genetically modified yeast strain that combines best in industry yield enhancement technology with extraordinary levels of glucoamylase and trehalase expression. This yeast generates between 80% and 100% of the enzymes required in fermentation.
Alcolase® 146 is a high-performance glucoamylase blend developed to maximize the fermentation performance of TransFerm® CV5. This product provides optimal results at a significantly lower dose than other commercial enzyme blends. When used with TransFerm® CV5 it is supplied at no extra charge.
“We are very excited to introduce the Convergence platform this week. Ethanol producers now have an alternative to purchasing expensive exogenous fermentation enzymes from traditional enzyme suppliers” says Angus Ballard, President of LBDS. “TransFerm® CV5 continues our tradition of developing innovative solutions that generate real value for our customers. We look forward to continuing this approach in the years ahead.
For additional information on the ConvergenceTM line of products, please see the Lallemand Biofuels web site at www.lbds.com or contact your local sales or technical presentative.
About Lallemand Biofuels & Distilled Spirits
Lallemand Biofuels & Distilled Spirits (LBDS), based in Milwaukee, WI, GA is a business unit of the Canadian yeast and bacteria producer Lallemand Inc. LBDS is a leading supplier of fermentation ingredients and value creating services to the global fuel ethanol and distilled spirits markets. For more information please visit www.lbds.com.
Read the original press release here.
Sep 10, 2020
The chairman of the House Agriculture Committee is eagerly awaiting confirmation on two major issues affecting the biofuels industry.
Minnesota Congressman Collin Peterson says the first involves President Trump reportedly directing EPA to deny dozens of so-called “gap year” small refinery exemption requests.
“That’s great, but we have not verified that. We haven’t actually seen that in writing at the EPA or anyplace else. I hope that’s true, and I hope the President sticks with that and this is not just some kind of rhetoric to get past the election. And then after the election, it goes away.”
During a Minnesota Renewable Energy virtual roundtable Thursday, Peterson was asked (by Brownfield) about Brazil agreeing to suspend its 20 percent tariff on U.S. ethanol imports for 90 days.
“Again, we have not been able to confirm this, these are the rumors. And in both of these cases, they’re quoting anonymous sources. The people say they want to be anonymous so they can speak freely, but we don’t know exactly what this means. So I hope that’s true.”
Peterson says while these are positive signals, Congress has not seen anything official on gap year waivers or Brazil’s ethanol tariffs.
Read the original story here.
Sep 4, 2020
A boom in demand for hand sanitizer in South Korea since the outbreak of COVID-19 is not shocking, but the related jump in U.S. ethanol imports to the country to meet that need may be more surprising. This uptick in demand is opening doors for the U.S. Grains Council (USGC) and partners to build new partnerships to expand demand potential for ethanol across Asia both for industrial uses and fuel.
“The COVID-19 pandemic has altered ethanol markets around the world,” said Haksoo Kim, USGC director in South Korea. “The demand for U.S. ethanol for industrial use in South Korea has increased significantly due to high demand for sanitizing products in South Korea and throughout the region.
“Despite these short-term impacts, fuel ethanol demand remains viable for expansion in the future, and the council is working to increase market access in individual countries in the region,” Kim said.
Domestic demand for hand sanitizer in Korea is now 2.6 million gal. per month, more than 12 times pre-pandemic levels. The country had already been importing U.S. ethanol for industrial uses like windshield wiper fluid and disinfectants, but increased demand has led to more purchases.
South Korea imported 58.9 million gal. of U.S. ethanol (20.9 million bu. in corn equivalent) for industrial uses from January to July 2020, up nearly 53% year over year. This level constitutes a 55% market share, with competition primarily from Brazil, China and Pakistan.
USGC met virtually on Aug. 24 with KC&A, the largest U.S. ethanol importer and distributor in Asia, to discuss the obstacles and opportunities for export expansion in the region. The company has the only facility in South Korea that can rectify -- or distill to remove water and other compounds -- ethanol for use in sanitizing products. The company’s operations in the port city of Ulsan are also well placed to take advantage of transshipment opportunities to other Asian countries.
Representatives from three USGC offices -- the Washington, D.C., headquarters office; the Southeast Asia regional office in Kuala Lumpur, Malaysia, and the South Korea office -- all participated in the meeting. The council and KC&A discussed how to work together to introduce and expand fuel ethanol policies in the region and capitalize on logistical advantages.
“The council and KC&A worked to increase our understanding of the changing ethanol markets in the United States, South Korea and Southeast Asia,” Kim said. “By sharing information and knowledge, we will cooperate to expand and develop ethanol markets in the region.”
While fuel demand remains down due to COVID-19, USGC has advocated for revisions in government policies that permit ethanol for fuel use and provide a role for trade.
In Indonesia, the council worked with Growth Energy, the Renewable Fuels Assn. and the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) to remove a ban on ethanol entering the country. U.S. ethanol can now enter the Indonesian market by way of pre-blended fuel.
In Vietnam, USGC worked with FAS to engage Vietnam's Ministry of Industry & Trade and Ministry of Finance to reduce most-favored nation tariffs, which are the lowest possible tariffs a country can assess on another country with this status. While the council and its partners pushed for a tariff reduction in line with competing products like aromatics and other petrochemical oxygenates, the tariff was eventually reduced to 15% for both 100% pure ethanol and 99% or less pure ethanol -- the maximum reduction applied to any commodity or product during this review period.
The council said it will continue to expand public and private partnerships like these to help U.S. ethanol meet the shifting demand needs in Asia and the rest of the world.
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