In the News

Reuters

Nov 30, 2022

NEW YORK, Nov 29 (Reuters) - U.S. senators from Nebraska and Minnesota introduced legislation on Tuesday that would expand nationwide sales of E15, a gasoline with a higher blend of ethanol, after gaining support for the bill from an oil industry trade group for the first time, Senator Deb Fischer from Nebraska told Reuters.

The legislation, introduced by Fischer and Senator Amy Klobuchar from Minnesota and supported by the American Petroleum Institute (API), would mark a huge win for the ethanol industry and corn farmers who have repeatedly tried to expand sales of E15 but have faced hurdles.

While it is unknown if the bill has the support it needs to pass both the House and Senate to become law, the backing of the oil industry has lifted a notable political obstacle.

U.S. Environmental Protection Agency (EPA) anti-smog regulations currently restrict summertime sales of E15, even though research has shown the higher percentage blend may not increase smog relative to the 10% blend called E10 that is now sold year-round.

Reuters reported this month that the API began cooperating with biofuel industry groups about legislation after governors from major corn-producing Midwestern states earlier this year requested the EPA allow for expanded sales of E15 in their own states. The governors' proposal raised oil industry concerns about fuel regulations differing from state to state.

"We have good support," Fischer told Reuters. "When you look at the impact it'll have, especially on the central part of the United States, the Midwest and part of the south, I think that's extremely important."

Fischer and Klobuchar's legislation, if passed, would nullify the governors' request and avoid patchwork E15 expansion, Fischer said.

"By allowing for the year-round sale of E15 nationwide while also preserving access to lower ethanol gasoline blends, this bipartisan legislation strengthens the reliability of the fuel supply chain and ensures American consumers have access to the fuels they depend on every day," said Will Hupman, API's vice president of downstream policy.

The legislation also has the support of Senator Kevin Cramer from North Dakota, a co-sponsor of the bill. Cramer's support is significant, as North Dakota is one of the top oil-producing states, Fischer said.

Organizations including the API, the Renewable Fuels Association (RFA) and the National Farmers Union wrote to congressional leaders this month to urge them to adopt legislation to expand nationwide E15 sales. 

"We thank Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which brings much-needed consistency and stability to the marketplace," said RFA President Geoff Cooper, after Tuesday's legislation announcement.

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Ethanol Producer Magazine

Nov 23, 2022

U.S. fuel ethanol production expanded by 3 percent the week ending Nov. 18, according to data released by the U.S. Energy Information Administration on Nov. 23. Ethanol stocks were up more than 7 percent.

Fuel ethanol production averaged 1.041 million barrels per day the week ending Nov. 18, up 30,0000 barrels per day when compared to the 1.011 million barrels of production reported for the previous week. When compared to the same week of last year, production for the week ending Nov. 18 was down 38,000 barrels per day.

Weekly ending stocks of fuel ethanol expanded to 22.829 million barrels per day the week ending Nov. 18, up 1.531 million barrels when compared to the 21.298 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Nov. 18 were up 2.665 million barrels.

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Renewable Fuels Association 

Nov 22, 2022

In a letter sent yesterday to U.S. Senate and House leadership, a broad coalition of energy and agriculture organizations called on Congress to quickly adopt legislation that would resolve inconsistent fuel volatility regulations. Specifically, the groups expressed support for legislation that would result in equal regulatory treatment for all gasoline blends containing 10 percent ethanol (E10) or more, including gasoline with 15 percent ethanol (E15). Such legislation would permanently remove the regulatory barrier that has historically made it extremely difficult for retailers to offer E15 in the summertime.

The letter, sent to Senate Leaders Chuck Schumer and Mitch McConnell, House Speaker Nancy Pelosi, and House Minority Leader Kevin McCarthy, was signed by the Renewable Fuels Association, American Petroleum Institute, American Farm Bureau Federation, Association of Equipment Manufacturers, Growth Energy, National Association of Convenience Stores, National Corn Growers Association, National Council of Farmer Cooperatives, National Farmers Union, National Sorghum Producers, NATSO, representing truck stops and travel plazas, and SIGMA: America's Leading Fuel Marketers.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” according to the letter. “Our groups have come together—for the first time ever—to support legislation that would resolve this issue once and for all.”

The groups are advocating for a simple legislative fix that would provide equal treatment nationwide to all gasoline blends containing 10 percent ethanol or more, while simultaneously superseding state regulatory action recently sought by a group of governors. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape,” the letter says.

“In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 that would continue to resurface every summer. Thus, we urge Congress to act quickly to adopt legislation that will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations.”

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Renewable Fuels Association

Nov 16, 2022

A report released today by the U.S. Energy Information Administration demonstrates clearly that higher blends of ethanol helped moderate fuel prices  in the wake of the Ukraine invasion. The report noted that the U.S. ethanol blend rate hit a record summer average of 10.5% in 2022 and averaged 10.6% in June and August. “Fuel ethanol’s price discount to gasoline was one factor that led to the higher summer blend rate in 2022,” the report stated. “Although ethanol prices have been high in 2022, they have been low relative to gasoline prices, which were at their highest since 2014 this summer because of low domestic inventories and constraints on refining capacity.”

“This new analysis from EIA confirms that American drivers gravitated toward lower-cost E15 and E85 this summer as war in Ukraine drove pump prices to record heights,” said RFA President and CEO Geoff Cooper. “The report also demonstrates that President Biden made the right call by issuing emergency waivers to allow the continued sales of E15 through the summer months. The Biden administration’s emergency waivers helped stave off fuel shortages and ensured consumers had uninterrupted access to E15, which was typically priced 20-40 cents per gallon lower than regular gasoline. EIA’s analysis also shows that consumption of lower-carbon renewable fuels increases, as expected, when the Renewable Fuel Standard and its RIN market mechanism are allowed to work as intended. This report comes at a critical time and underscores the importance of permanently removing the summertime barrier to E15 sales and implementing robust RFS volume requirements for 2023 and beyond.”

The report matches  a recent ananlysis  by RFA Chief Economist Scott Richman, which found that an additional 194 million gallons of E15 were sold during the summer as a result of the Biden administration’s RVP waivers, saving American consumers $57 million. In a column in the August issue  of Ethanol Producer magazine, Cooper reflected that “At gas stations across the country, the cure for high prices isn’t more high prices—it’s ethanol. Refiners and blenders can lower gas prices for consumers simply by adding more ethanol, which has been $1–$1.50 per gallon cheaper than gasoline for much of the summer.”

EIA in its report stated that it raised its forecast for the average 2022 fuel ethanol blend rate to a record 10.4%. “This year’s annual average blend rate has been higher so far than in prior years, averaging 10.3% from March through July, compared with 10.1% for the same months in 2020 and 2019—the most recent year that EPA set RFS targets for ethanol at the current maximum. Following August’s average blend rate of 10.6%, the 2022 annual average blend rate increased to 10.4%. We forecast the annual average fuel ethanol blend rate to remain near current levels and end the year at 10.4%.”

EIA also noted that E85 sales have been on the rise. “From June–August 2022, U.S. production of E85 conventional gasoline was at record levels, averaging 21,000 b/d over those three months. In comparison, conventional E85 production averaged 15,000 b/d from June–August 2021 and was generally lower in all prior months. … In addition, E85 is becoming increasingly available. According to the U.S. Department of Energy’s Alternative Fuels Data Center, the United States had 4,331 E85 fueling stations as of January 2022, a 10% increase (385 stations) from the prior year.”

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Ethanol Producer Magazine

Nov 7, 2022

The U.S. exported 100.4 million gallons of ethanol and 877,745 metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 3. Exports of both products were up from September 2021.

The 100.4 million gallons of ethanol exported in September was up from both the 76.99 million gallons exported the previous month and the 77.58 million gallons exported in September 2021.

The U.S. exported ethanol to approximately three dozen countries in September. Canada was the top destination for U.S. ethanol exports at 42.22 million gallons, followed by the Netherlands at 13.75 million gallons and South Korea at 12.02 million gallons.

The value of U.S. ethanol exports reached $280.59 million in September, up from both $229.43 million in August and $191.7 million in September of last year.

Total ethanol exports for the first nine months of 2022 reached 1.11 billion gallons at a value of $3.07 billion, compared to 872.5 million gallons exported during the same period of last year at a value of $1.79 billion.

The 877,745 metric tons of distillers grains exported in September was down when compared to the 981,020 metric tons exported in August, but up when compared to the 853,707 metric tons exported in September of last year.

The U.S. exported distillers grains to approximately 35 countries in September. Mexico was the top destination for U.S. distillers grains exports, at 187,583 metric tons, followed by Vietnam at 155,945 metric tons and South Korea at 57,554 metric tons.

The value of U.S. distillers grains exports reached $271.9 million in September, down from $317.05 million the previous month, but up from $216.61 million in September 2021.

The U.S. exported a total of 8.59 million metric tons of distillers grains during the first three quarters of 2022 at a value of $2.61 billion, compared to 8.56 million metric tons exported during the same period of 2021 at a value of $2.22 billion.

Additional data is available on the USDA FAS  website

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Ethanol Producer Magazine

Nov 3, 2022

Novozymes released third quarter financial results on Nov. 3, reporting that bioenergy sales were up 32 percent for the three-month period and 26 percent for the first nine months of the year. Overall sales were up 6 percent for the quarter, and 9 percent so far this year.

Novozymes said the strong performance for its bioenergy segment was driven by a broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value capture for producers in a favorable market environment.

The North American market experience strong developments overall, according to Novozymes, supported by increased U.S. ethanol production. Outside of North America, performance was also strong and driven by innovation, capacity expansion of corn-based ethanol production in Latin America and supported by growth in solutions for biodiesel production.

For the third quarter, Novozymes also reported that sales of enzymes used in second-generation biofuels also did well and contributed to growth during the three-month period.

Following strong performance for the first nine months of 2022, Novozymes has raised its guidance for the full year performance of the bioenergy segment. The company now expects growth in the high-teens, up from the mid-teens. That growth is expected to be driven by innovation and supported by increased U.S. ethanol production, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production along with enzyme sales for second-generation ethanol production.

The bioenergy segment accounted for 20 percent of Novozymes sales during the first nine months of 2022. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 29 percent, 24 percent, 15 percent and 12 percent, respectively.

A full copy of Novozymes’ third quarter report is available on the company’s website.

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Reuters

Nov 3, 2022

The U.S. Environmental Protection Agency plans to seek public comment on whether to allow year-round sales of higher ethanol gasoline blends in Midwest states, based on a request from state governors that they say would ease pump prices and help farmers, according to three sources familiar with the discussions.

The move to expand sales of E15 would be a win for the ethanol industry, which wants to increase sales of the corn-based fuel and which argues the product would reduce gasoline prices by expanding the volume of available supply.

However, critics of the idea - including those in the refining industry - have voiced concerns that a piecemeal approach to growing E15 sales could introduce logistical distribution challenges.

The EPA could start seeking comment as soon as this month, said the sources.

The refining industry has traditionally balked at efforts to expand the ethanol market because it competes for space in the fuel tank and can be costly to blend.

The EPA did not respond to requests for comment.

The EPA enforces a summertime ban on E15 over concerns it contributes to smog in hot weather, though research has since shown the 15% blend may not increase smog relative to the more common E10 sold year-round. E10 contains 10% ethanol.

In April, governors from major corn-producing Midwestern states including Iowa, Nebraska and Illinois requested that the EPA effectively lift the ban in their states. EPA head Michael Regan said in September the agency intends to act on the request  before next summer.

Critics say allowing a different fuel grade in a region that is serviced by a select amount of pipelines can create shipping challenges.

The biofuel industry has faced legal hurdles in expanding U.S. E15 sales in the past.

A federal appeals court last year struck down an effort by former President Donald Trump's administration  to allow year-round E15 sales,  arguing it did not have the authority, a decision that had been sparked by a challenge from the refining industry.

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Whitefox

Nov 8, 2022

Whitefox, the leading bioethanol membrane engineering innovator, is pleased to announce that Western Plains Energy LLC (Western Plains) will be the first US ethanol producer to install Whitefox ICE®-XL system at its 50 million gallons per year ethanol plant in Kansas. 

Derek Peine, CEO at Western Plains Energy said: “Since beginning operations in 2004, Western Plains has always been on the forefront of innovation and an early adaptor of technologies that deliver step-changes in energy efficiency and operational yield. In our discussion with Whitefox we found that its ICE-XL integrated membrane solution would serve as a cornerstone in fully decarbonizing our production process. Our quest to achieve net-zero emissions is something that we are passionate about, and we are excited to partner with Whitefox to help us achieve our goal.” 

Tony Short, Head of Global Sales at Whitefox said: “Whitefox ICE-XL is an evolution of the Whitefox ICE® which we have installations in 9 US ethanol plants. ICE-XL fully replaces existing molecular sieves and delivers exceptional operational benefits such as up to 50% capacity increase across distillation and dehydration and 50% steam reduction when fully integrated. Our team of process engineers worked closely with Derek and his team to design a solution that would bring exceptional energy recovery and carbon reductions to enable carbon neutral fuel production.” 

Gillian Harrison, CEO at Whitefox said "I first met Derek in 2016 and it was inspiring to hear how focussed he was on reducing the carbon footprint of ethanol production. We began discussing how we could expand the Whitefox ICE solution to a full replacement of molecular sieves, given their propensity to crack, so it's exciting to now be working with Western Plains to install our first ICE-XL and support them on their journey to Net Zero ethanol." 

Engineering phase 1 is already in progress and the project has an estimated start-up and commissioning date towards the end of 2023. 

About Western Plains 

Western Plains Energy, LLC. is renewable energy production company in Oakley, Kansas. The company converts regionally grown grain into sustainable, low-carbon products in the form of denatured ethanol and wet distillers grains. Western Plains Energy is committed to meeting the growing demand for domestically produced, sustainable renewable energy. 

About Whitefox Technologies Limited 

Whitefox specializes in technology development and innovation based on its proprietary membrane solutions. Whitefox’s Integrated Cartridge Efficiency (ICE) uses membrane-based cartridge technology which enables clients to produce ethanol and other chemicals to the highest market standards in the most energy and water efficient way. With a small carbon footprint, Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America. 

Read the original press release here