In the News
Dec 16, 2020
The Renewable Fuels Association on Dec. 16 said the COVID-19 pandemic will likely continue to negatively impact the U.S. ethanol industry well into 2021. The group, however, expressed optimism in working with the upcoming Biden administration.
Representatives of the RFA discussed the impact of the pandemic, the need for COVID-19 relief, and several policy initiatives during a media call held Dec. 16.
Geoff Cooper, president and CEO of the RFA, said market conditions for ethanol have gone from bad to worse in recent weeks as higher COVID-19 cases have resulted in new restrictions and reduced demand for transportation fuels.
Scott Richman, chief economist at the RFA, said ethanol production was down approximately 2 billion gallons from March to November. As a result, the ethanol industry lost approximately $3.8 billion in revenues, he said, noting the impact of that loss will not be mitigated through future sales.
Although COVID-19 vaccines are now being distributed, Richman said fuel demand will likely remain depressed for several months. At the earliest, he said volumes could normalize by late spring 2021. Reduced demand associated with the pandemic, however, could persist for longer. “The impact of this pandemic is not over,” Richman said.
Cooper said the RFA has has been advocating for the federal government to provide dedicated COVID-10 relief to the biofuels industry since last spring. While the CARES Act did provide funds for ag relief, none of the funds were specifically allocated to the renewable fuels industry.
Congress is currently negotiating a new relief package and is expected to reach a deal this month. Although that legislation is unlikely to provide dedicated relief for ethanol, it will likely provide a fresh round of ag relief. The upcoming Biden administration might make it possible for ethanol producers and other downstream ag processors to benefit from those ag relief funds.
Coper explained that the USDA does have the discretion and authority to provide ethanol producers and other downstream ag producers with relief through Commodity Credit Corp. funds. Current Agriculture Secretary Sonny Perdue has been reluctant to do so, Cooper said. The RFA believes, however, that President-elect Joe Biden’s pick for ag secretary is likely to take a more inclusive approach to COVID-10 relief. Biden has announced his intent to nominate Tom Vilsack to lead the USDA. Vislack is a former two-term Iowa governor and served as ag secretary during all eight years of the Obama administration.
Cooper also discussed RFA’s advocacy work related to the Renewable Fuel Standard, small refinery exemptions (SREs) and related court challenges. Regarding the overdue RFS rule to set 2021 renewable volume obligations (RVOs), Cooper said the RFA believes the upcoming Biden administration should manage that rulemaking.
“It’s been a wild year, to say the least,” Cooper said. “I’m sure I speak for the entire ethanol industry when I say we will not be sad to say goodbye to 2020 and ring in the new year.”
Read the original story here.
Dec 15, 2020
Cedar Rapids, Iowa – Fluid Quip Technologies announced a new partnership, making them an exclusive distributor of Trislot screens for the corn grind and biofuels industries. Trislot screens are utilized in fiber separation and washing in FQT’s patented technologies. The high-quality screens allow for optimal performance at critical points in the separation process. Trislot screens will be marketed and distributed through FQT’s partner Fluid Quip Mechanical (FQM).
“The exclusive partnership with Trislot is a natural alignment for FQT. We have long utilized Trislot, as our technologies have continued to develop.” says Michael Franko, Partner for Fluid Quip Technologies. Franko continued, “In addition to being a fit for our technology needs, Trislot is also a match for our mechanical services. Their ability to provide high-quality, innovative designs allows our mechanical engineers to develop cost-effective and specific solutions for operations and maintenance.”
“Trislot designs and manufactures stainless steel filter elements and separation screens based on V-shaped profile wires.” states Florian Van Assche, Operations Officer – Trislot USA, Inc. Florian continues, “These high precision filtration elements are made from profile wires that are resistance welded onto support wires in an automated production process.” Trislot’s continued development of cutting-edge technology and additional manufacturing locations, has led to the achievement of a leading position in the international market.
About Fluid Quip Technologies
Fluid Quip Technologies is a premier process engineering and technology development company headquartered in Cedar Rapids, Iowa. FQT has provided technologies for more than 2.3 billion gallons per year of biofuels production worldwide. The engineering and technical leadership team have been developing and implementing new technologies and process solutions applicable to the biofuels and biochemical markets for more than 30 years. FQT provides fully integrated solutions and services to dry- grind ethanol and biochemical facilities, which include green field plant design, process optimization, yield improvement technologies, new co-product technologies, and turn-key capital project solutions.
About Trislot
Trislot is a dynamic company, well known for excellence in customer service and leadership in technology. Serving customers worldwide, Trislot’s focus is on providing highly specialized filter elements and reactor internal to key players in various industries.
Read the original press release here.
Dec 15, 2020
Novozymes, the world leader in biological solutions, has expanded its portfolio of innovative enzyme solutions for the bioenergy industry with the launch of Fortiva Hemi. The unique new product brings novel enzymes to liquefaction that enable unmatched substrate conversion to deliver the highest corn oil and ethanol yields possible. Effective across the broadest pH and temperature ranges, it is also the most flexible liquefaction solution available to ethanol producers.
"Corn input costs remain the highest variable cost for fuel ethanol producers, and failure to convert all that is available in corn means lost opportunity and profit,” says Brian Brazeau, Novozymes’ Vice President, Agricultural & Industrial Biosolutions, Americas. “Fortiva Hemi enables utilization of a previously untapped potential in corn conversion, creating the opportunity for more than 10% corn oil yield increase and up to 1% additional ethanol yield, enhancing profit in a difficult fuel ethanol market.”
Fuel ethanol plants have previously only been able to achieve on average 40% efficiency in extracting available corn oil, but greater than 95% efficiency in converting starch to ethanol. Fortiva Hemi acts upon the fiber matrix during liquefaction, creating the potential for improved fat and starch conversion that lead to oil and ethanol yield previously inaccessible. This newly freed substrate is then converted using Novozymes’ highest yielding enzyme blends to once again improve ethanol production efficiency.
The new enzyme solution can work at high temperature liquefactions (195°F/91°C), across a wide pH range, and is ideal for the operational conditions of all plants.
Creating new standards in corn oil yield
Novozymes believes that increasing the efficiency of corn oil extraction could be significant in advancing bioethanol production.
“Fortiva Hemi is a drop-in liquefaction technology and builds on the operational flexibility that our customers have come to expect and value. It is expected to create a new standard for corn oil yield in the bioenergy industry that exceeds 10% higher oil yield,” adds Brian Brazeau. “Novozymes focuses across the full spectrum of ethanol processing and, making available some of the most advanced biology ever developed, aims to advance the market’s push for more sustainable, renewable energy.”
Fortiva Hemi will be immediately available globally, along with the rest of Novozymes’ Fortiva liquefaction products already proven to be the highest performing liquefaction solutions in the biofuel industry.
Read the original press release here.
Dec 11, 2020
With COVID-19 cases on the rise again, state and local governments are taking additional actions to limit travel and promote social distancing. In turn, consumption of ethanol-blended gasoline is rapidly falling again, threatening to derail an already tenuous economic recovery in the ethanol industry. Through November, U.S. ethanol producers had already lost $3.8 billion since the start of the pandemic, according to a new analysis released today by the Renewable Fuels Association. In response to reduced travel and lower fuel demand, ethanol producers slashed production by 2 billion gallons between March and November, and cuts are expected to continue for months to come.
In the first week of December, consumption of both gasoline and ethanol fell to their lowest points since May, according to data from the Energy Information Administration.
“As Congress debates another COVID-19 relief package, we implore policymakers to consider the devastating economic impact the pandemic has had on renewable fuel producers,” said RFA President and CEO Geoff Cooper. “Our new analysis provides an in-depth look at how rural communities have suffered. The decrease in ethanol production has idled or permanently closed plants across the heartland and caused job losses in rural communities where good employment is often hard to find. As an industry deemed critical and essential to America, we call on Congress to act swiftly to provide some targeted relief to our nation’s renewable fuels industry.”
Cooper pointed out that U.S. ethanol plants are also playing a crucial role in combatting the pandemic by producing high-purity alcohol for hand sanitizer and other disinfectants, as well as capturing the CO2 needed to make the dry ice required for distributing COVID-19 vaccines. “But ethanol plants can’t help in the fight against COVID if they can’t keep their doors open,” Cooper warned.
According to RFA Chief Economist Scott Richman, who authored the white paper, the 2-billion-gallon cut in ethanol production meant a significant 700-million-bushel decline in the use of corn for ethanol. He stressed that while this report looks at a one time period, the effects of the pandemic will continue for a long time to come.
“Gasoline and ethanol consumption are still substantially below pre-pandemic levels, and it is likely that this will persist for a number of months,” Richman wrote. “Moreover, the winter is typically a time when ethanol prices are weak, and the decline in demand has already started to intensify pressure on industry margins. As a result, the economic impact on the ethanol industry and, in turn, the agriculture sector is likely to deepen in the coming months.”
Richman’s new analysis provides an important update on earlier reports from April and July.
Click here for additional research on the COVID-19 impact on renewable fuels.
Read the original story here.
Featuring real-life, field-based presentations, the Plant Maintenance & Safety Summit is geared towards biofuels industry professionals focused on production efficiency, plant optimization, process control, advanced maintenance, compliance, quality control, safety and other areas of facility operations. This event will particularly appeal to plant managers, operations managers, process engineers, maintenance managers, operators and other personnel seeking the latest facility maintenance solutions.
This event provides the opportunity to meet face-to-face via live private video meetings with industry experts who will offer new technology and solutions to making plants and facilities safely operate at peak capacity and optimum efficiency.
What to Expect, Virtually Speaking
General Session: Hear the latest on industry policy from the industry’s leaders.
25 Speakers: Watch live and get content from companies and people who are shaping the biofuels world. Hear about the latest techniques, research and products helping producers become more efficient and profitable.
Presentations OnDemand: All sessions will be recorded and will be available for attendees for 30 days, so you can go back and view presentations you may have missed.
Virtual Program Guide: As an attendee, you’ll gain access to the digital program guide, containing writeups about the sponsors, exhibitors and speakers.
Ask Questions, Get Answers: You’ll have access to network with the speakers, once they are finished. You’ll be able to ask questions and get answers real-time.
Virtual Exhibit Hall
Chat with Exhibitors: Exhibitors will have someone online at their virtual booth at all times. There will be live chat rooms available to network with exhibitors.
Live Zoom Meetings: In addition to live chat rooms, as an attendee, you’ll have the ability to have live Zoom meetings with exhibitors and sponsors.
Private Meetings: You will have the ability to hold private meetings with exhibitors and sponsors.
Play Virtual Bingo and Win prizes. Attendees will have a chance to meet with exhibitors, complete their bingo card and enter to qualify into the Virtual Bingo game for a chance to prizes.
Whitepapers and Brochures: Download whitepapers, brochures and videos posted by each exhibitor.
Producer Giveaways: All producers will have the ability to win cash prizes each day and gain “Network Nickels.”
Networking Rooms
Private Meetings with Sponsors: Attendees can be personally invited to join private networking rooms to chat with specific attendees and VIP invites only.
Read the original announcement here.
Dec 9, 2020
U.S. fuel ethanol production increased by nearly 2 percent the week ending Dec. 4, according to data released by the U.S. Energy Information Administration on Dec. 9. Ethanol stocks were up by approximately 4 percent.
U.S. ethanol production averaged 991,000 barrels per day the week ending Dec. 4, up 17,000 barrels per day when compared to the 974,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 81,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to 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 fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks of fuel ethanol expanded to 22.083 million barrels the week ending Dec. 4, up 843,000 barrels when compared to the 21.24 million barrels of stocks reported for the previous week. Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been growing in recent weeks. When compared to the same week of last year, ethanol stocks for the week ending Dec. 4 were up 268,000 barrels.
Read the original story here.
Dec 8, 2020
Tom Vilsack is set for another stint as U.S. secretary of agriculture.
News organizations in Washington, citing people familiar with the decision, reported Tuesday night that President-elect Joe Biden would select Vilsack for the post.
Vilsack, who could not be reached for comment Tuesday, said in an interview with the Des Moines Register last week that he didn't know if he was being considered for the job.
"I don’t think anybody knows," Vilsack said. "It’s not like they put out a list saying, 'Here are the people we’re thinking about.' It’s not the way it works."
Media outlets also had reported that Biden was considering U.S. Rep. Marcia Fudge of Ohio, former Michigan Gov. Jennifer Granholm and former U.S. Sen. Heidi Heitkamp of North Dakota. But on Tuesday afternoon, reports emerged that Fudge would be nominated for Housing and Urban Development secretary.
Iowa farm leaders like the idea of Vilsack leading the department again. But some warn he will face challenges unlike those he saw during his eight years in the job during the Obama administration.
If confirmed by the Senate, the Democrat will come to office at a time when U.S. farmers face low commodity prices, diminished trade and an ongoing decline in rural population, jobs and opportunities.
He will have the backing of U.S. Sen. Chuck Grassley, an Iowa Republican who served as Agriculture Committee chairman during Vilsack's previous tenure.
“I liked what Vilsack did as the secretary of agriculture for eight years, and if he was in for another four years, it would be OK with me," Grassley said Tuesday. "I would be glad, if he wants me to, to speak for him before the Agriculture Committee.”
"He certainly understands rural issues," said Patty Judge, a Democrat who served as Iowa's agriculture secretary during Vilsack's tenure as governor. "And not just food production, but issues like broadband access, lack of affordable housing and the need for jobs."
"Having an Iowan at the helm of USDA would be positive for our state’s agriculture community," Mike Naig, Iowa's current agriculture secretary, said in a statement. "Tom Vilsack would certainly be able to hit the ground running given his previous experience, and being a former governor, he understands the interaction between states and the federal government.
Vilsack, who turns 70 on Sunday, said last week that putting together a Cabinet was like putting together a jigsaw puzzle that must balance gender, race and geographic considerations.
Some national leaders have criticized Biden for failing to have enough diversity in his Cabinet selections thus far.
"You just don’t know until all the pieces are put together. Or at least enough pieces," Vilsack said, adding that he was told he "would not be" Obama's agriculture secretary, but then was asked a few weeks later to meet with the then-president-elect, who hired him. He ended up serving for eight years.
Most Iowans interviewed by the Register welcomed the idea of Vilsack returning to Washington, even if they didn't always agree with the Obama administration's policies.
"It would be pretty exciting," said Monte Shaw, president of the Iowa Renewable Fuels Association. "Not only is he an Iowan, but knows the biofuels industry. He's been through the policy fights."
Vilsack supports the Renewable Fuel Standard, a federal mandate that requires ethanol, biodiesel and other renewable fuel to be blended into the nation's fuel supply. Farmers fought with President Donald Trump's administration over exemptions it provided the oil industry, waiving some refiners from blending biofuels.
Iowa is the nation's leading producer of biofuels, and industry experts say the exemptions have destroyed demand for billions of gallons of ethanol and biodiesel. Ethanol production uses half of Iowa's annual corn crop.
Additionally, Shaw said the U.S. Environmental Protection Agency will have greater freedom in setting renewable fuel levels in 2022, when guidelines from the 2007 law end. "If anyone is listening, I'd rather (Vilsack) head the EPA," Shaw said.
Kirk Leeds, CEO of the Iowa Soybean Association, said Vilsack has been a strong advocate for trade. In last week's interview, Vilsack noted that trade is tied to about 30% of U.S. farm revenue.
Leeds said he believes Vilsack agrees that China is guilty of "trade agreement abuses and misuses," from blocking U.S. farmers from some markets to stealing intellectual property. The Trump administration levied tariffs against China because of those abuses. But Leeds said Vilsack, like Biden, thinks the solution needs to be "multilateral," working with U.S. trade allies.
Read the original story here.
American Coalition for Ethanol
Dec 8, 2020
Sioux Falls, SD – The Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union today filed a brief challenging EPA’s August 2019 decision to exempt 31 small refineries from their obligations to comply with the Renewable Fuel Standard in 2018. Collectively known as the Biofuels Coalition for this case, the group submitted its filing to the D.C. Circuit Court of Appeals, arguing that EPA lacked the authority to issue such exemptions and that it acted in an arbitrary and capricious manner in attempting to do so.
In its brief, the Coalition asserts some of the same arguments that the Renewable Fuels Association, NCGA, NFU, and ACE successfully made in the Tenth Circuit Court of Appeals against three small refinery exemptions, including the fact that EPA lacked the authority to extend small refinery exemptions that had lapsed in earlier years. The Coalition also took on EPA’s failure to provide its own refinery-by-refinery analysis to support a finding of a disproportionate economic hardship, particularly in the 20 instances where EPA decided to grant a full exemption despite the Department of Energy recommending that only a partial exemption be granted. In addition, the Biofuels Coalition posed the same question on which the Tenth Circuit found EPA inexcusably silent: If all RFS compliance costs are ultimately passed through to end users and recovered, as EPA has repeatedly maintained, how is it that any small refinery can suffer a disproportionate economic hardship?
“Among all of EPA’s indefensible actions surrounding small refinery exemptions in recent years, the Agency’s two-page decision to grant 31 waivers from 2018 RFS compliance really takes the cake. Enough is enough,” Coalition representatives said. “The EPA had absolutely no legal basis for continuing to destroy demand for renewable fuels, which is contrary to the intent of Congress for the RFS program. When it adopted the RFS in 2005, Congress clearly intended for small refinery exemptions to be temporary in nature. Yet, 15 years later, some refiners—most of whom have readily complied with RFS obligations in the past—are trying to claim they need more time to prepare for compliance with RFS requirements. If these exemptions were meant to be a ‘bridge to compliance’, as concluded by the courts, it should be obvious that we all crossed that bridge many years ago.”
In prior years, EPA would respond separately to each small refinery exemption petition with several pages of analysis on the individual refinery’s unique circumstances. However, for the 2018 exemptions, EPA announced its decisions on more than three dozen refinery petitions in a single, two-page memorandum issued by Acting Assistant Administrator Anne Idsal. That brevity alone reflects EPA’s reflexive reaction to exempt oil interests from compliance whenever they asked without justification.
Read the original story here.
More...
Dec 7, 2020
According to the latest analysis from the Renewable Fuels Association, U.S. ethanol exports in October rocketed 64% higher to 126.5 million gallons (mg), the largest volume since March.
Shipments crossing the border to Canada rebounded by 11% (35.6 mg), equivalent to 28% of total U.S. ethanol exports. The Netherlands purchased record gallons (24.2 mg) while sales to South Korea jumped to the largest monthly volume this year (15.0 mg). Other larger markets included India (11.6 mg), Colombia (11.1 mg), Norway (6.6 mg, a record high), Finland (3.8 mg), Nigeria (3.8 mg), Peru (3.5 mg), and Mexico (3.4 mg). Exports to Brazil were minimal for the fifth straight month. Global year-to-date exports of U.S. ethanol totaled 1.109 billion gallons, or 9% less than this time a year ago.
On the other hand, RFA reports that exports of dried distillers grains (DDGS) declined 18% in October to 951,500 metric tons (mt). While exports to the largest destinations moved higher, shipments to Japan scaled back after hitting a record high in September, accounting for half of the total month-on-month decline.
Read the original story here.
Dec 1, 2020
A company based in Chicago has developed a way to get diesel engines to run completely on ethanol.
BJ Johnson, co-founder and CEO of ClearFlame Engine Technologies, says their mission is to decrease tailpipe emissions and build a low-carbon future.
“What our solution allows is to maintain all of the performance, fuel economy, torque, and practicality of the diesel engine design, but without the need for any diesel fuel and replacing it with 100 percent renewable ethanol. Which not only lowers your fuel cost, but also drastically lowers your emissions.”
He tells Brownfield they have validated their work on a commercial engine platform and are starting the process of transitioning that to field and on-road demonstrations.
Johnson says if just 20 percent of U.S. diesel trucks converted to ClearFlame technology, carbon reduction would eclipse 40 percent and ethanol demand would double.
“So the demand is absolutely limitless almost, and the potential for rapid carbon mitigation is also unmatched by any other solution out there.”
Johnson says when they’ve finalized commercialization, ClearFlame will look to secure long-term agreements with engine manufacturers.
Read the original story here.
Dec 1, 2020
The U.S. EPA has missed its Nov. 30 statutory deadline to set the 2021 renewable volume obligations (RVOs) under the Renewable Fuel Standard, as well as the 2021 RVO for biomass-based diesel. While the delay was not unexpected, representatives of the biofuels industry are expressing frustration that the EPA has, to date, failed to even release an initial proposal for public comment.
Under statute, the EPA is required to finalize annual RFS blending requirements for each compliance year by Nov. 30 of the preceding year. The RVOs for biomass-based diesel are finalized one year earlier. To meet that deadline, a proposed rule is typical released in the spring or early summer, with a public comment period that closes several months before the statutory deadline.
The EPA delivered its proposed rule to set the 2021 RVO and the 2022 RVO for biomass-based diesel to the White House Office of Management and Budget in mid-May. Such proposed rules are typically released for public comment within a month or two. This year, however, OMB review of the proposed rule is still listed as ongoing nearly seven months later.
EPA Administrator Andrew Wheeler briefly addressed the expected delay in setting the 2021 RVOs during a visit to Wisconsin in August. At that time, he said the agency is facing unusual challenges in setting the 2021 RVO due to the COVID-19 pandemic. While the EPA did send a proposed rule to the OMB in May, Wheeler said the agency started work on that rulemaking package before COVID-19 hit. “The entire landscape has changed since then,” Wheeler said at that time, noting both the refining and ethanol sectors have been hard hit by pandemic. He indicated the EPA was still trying to go through all the data to determine what effect COVID-19 will have on the 2021 RVOs. While Wheeler said it did not look like the rulemaking will be completed by its Nov. 30 statutory deadline, he also stressed the rulemaking will also not be two years late.
The EPA did not immediately respond to a request submitted on Nov. 30 seeking information on an updated RFS rulemaking timeline.
The Renewable Fuels Association said it makes more sense at this point to let the upcoming Biden administration handle the 2021 RVO rulemaking. “It shouldn’t come as a surprise to anyone that EPA is missing its statutory deadline for publishing the final rule for 2021 RVOs, given that we still haven’t even seen a proposed rule,” said Geoff Cooper, president and CEO of the RFA. “And even if a proposed rule was released today, it would be next to impossible to have a final rule done by the end of the calendar year, or even by inauguration day. At this point, it likely makes more sense to let the new administration handle the 2021 RVO rulemaking process entirely. President-elect Biden has correctly noted that the RFS waivers granted by the current EPA have ‘severely cut ethanol production, costing farmers income and ethanol plant workers their jobs.’* Thus, we are confident that the new EPA administrator, whoever that may end up being, will stop doing secret favors for oil refiners and ensure the RFS is implemented in a way that is consistent with the law and Congressional intent. We know it may take a few months for the new administration to get a final 2021 RVO rule done, but in the meantime, the statute is crystal clear that refiners must blend at least 15 billion gallons of conventional renewable fuel in 2021. So, while there may be some uncertainty around where the final advanced and cellulosic volume requirements may end up, the marketplace should be able to enter 2021 with some level of confidence around the conventional renewable fuel and biomass-based diesel requirements.”
The American Coalition for Ethanol criticized EPA’s failure to release even a proposed rule before the Nov. 30 statutory deadline. “While we have long understood the fact that EPA would miss the statutory deadline for finalizing the 2021 blending volumes, EPA’s utter failure to even put out the proposal is unacceptable,” said Brian Jennings, CEO of Ace. “Each day that passes with EPA failing to deny pending small refinery exemptions, dragging their feet on the 2021 RVOs, and ignoring the precedent set by the Tenth Circuit Court to rein-in future SREs creates more uncertainty about the future for the ethanol industry that has already suffered too much.”
The National Biodiesel Board is also criticizing the EPA for its delay. “This is absolutely the wrong time for EPA to leave the 2021 RFS rule to write itself,” said Paul Winters, director of public affairs and federal communications at the NBB. “Next year, the agency will have to both establish the annual 2022 RFS obligations and set all RFS volumes for 2023. And at the same time EPA will have to address the misuse of small refinery exemptions and the remand of the 2016 RFS rule.”
Read the original story here.
Nov 25, 2020
U.S. fuel ethanol production increased by nearly 3 percent the week ending Nov. 20, according to data released by the U.S. Energy Information Administration on Nov. 25. Stocks expanded by more than 3 percent, and for the first time in several months were up when compared to the same period of 2019.
U.S. ethanol production increased to an average of 990,000 barrels per day the week ending Nov. 20, up 28,000 barrels per day when compared to the 962,000 barrels per day of production reported for the previous week. The 990,000 barrels per day of production reported for the week ending Nov. 20 is the highest weekly average production level reported by the EIA since the week ending March 20, when production was at 1.005 million barrels per day. When compared to the 1.059 million barrels per day of production reported for the same week of last year, production was down 69,000 barrels per day.
Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to 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 fuels began to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.
Weekly ending stocks for fuel ethanol increased to 20.866 million barrels the week ending Nov. 20, up 663,000 barrels when compared to the 20.203 million barrels of stocks reported for the previous week. Stocks of fuel ethanol have fallen over the past several 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, stocks were up 589,000.
Read the original story here.
Nov 20, 2020
Pfizer on Friday said it will apply to the FDA for emergency use authorization for its coronavirus vaccine. The drug giant hopes to produce up to 50 million doses this year, with about half going to the U.S.
Moderna will also apply soon for the same emergency use authorization and expects to deliver about 20 million doses in the U.S. by the end of the year. The companies are trying to figure out the best way to keep the product safe and effective, but it's an icy challenge.
At Acme Dry Ice in Cambridge, Massachusetts, owner Marc Savenor and his team are working around the clock to provide dry ice to vaccine manufacturers.
"I never thought I'd be saving lives. But it feels really good," Savenor told "CBS This Morning Saturday" co-host Dana Jacobson.
Colder than Antarctica in winter, dry ice is critical to transporting and storing the coronavirus vaccines.
"The demand is definitely higher right now for the vaccine makers because as fast as they're making the vaccine, they're shipping it out," Savenor said.
Dry ice is made from carbon dioxide, a by-product of ethanol production. With Americans driving less in the wake of the pandemic, ethanol plants shut down, resulting in a shortage of carbon dioxide over the summer.
"Without CO2, it's like being a McDonald's without hamburgers," Savenor said. "Right now, we happen to have a great supply chain of CO2. You know, it's always scary to see what the demand is going to be with the vaccine."
With the help of dry ice, vaccines will be shipped from manufacturing facilities to freezer farms like Pfizer's in Kalamazoo, Michigan and then to vaccination sites across the country. The biggest challenge for distribution is "doing so much in parallel," said Tanya Alcorn, vice president of Pfizer's BioPharma Global Supply Chain. "We don't have all the answers."
Pfizer's vaccine needs to be kept at about 94 degrees below zero Fahrenheit. So, it developed a "thermal shipper" to transport and store its vaccine at sub-arctic temperatures.
"So the cool box — at least we think it's cool — it's a shipper box about the size of, like, a carry-on suitcase," Alcorn said. "And then there's dry ice that goes around it. And then it has actually a device within it that has a continuous GPS and temperature monitor. So we will be able to have continuous eyes on every shipper."
Each "cool box" contains a minimum of about 1,000 vaccine doses.
But, "that's a problem," according to Tim Size, the executive director of the Rural Wisconsin Health Cooperative, which represents 43 rural hospitals across the state.
"If you can ship 1,000, you can ship 200. It's more expensive. It's more cumbersome," Size said.
The nearly 1,000 minimum dose requirement is a challenge for rural areas. It means rural health care workers may have to travel to big cities to receive the vaccine, all while tackling a new wave of coronavirus infections.
"We're under a huge surge," Size said. "So for them to have to travel and maybe take a day off of work to travel to a regional center to then stand in line to get vaccinated, go back to work, and then two weeks later go back, taking another day off — this makes the logistics really bad."
Pfizer said they are working on a smaller shipper with fewer doses, which should be available early next year.
Ultra-cold freezers can help vaccine doses survive longer. But, Size said those are out of reach financially for most rural hospitals.
"There's a lot of other things they could do with $15,000 or $20,000," he said.
Moderna said its vaccine is stable at standard refrigeration temperatures and can be handled using existing infrastructure at pharmacies and doctor's offices.
That could be a game-changer, Size said, but he wants rural areas to have equal access to all the vaccines.
"We have a tremendous need to bridge rural America back together in our country. If basically rural's getting the message, 'We'll start with urban,' even if it's for reasonable logistical reasons, it's bad optics," he said. "I don't think anybody wants to give a message that rural Wisconsin or rural America is second class."
Pfizer told CBS News one of its fundamental principles is equitable access to their vaccine for all communities. Alcorn acknowledged they don't have all the answers yet and said Pfizer is working with Operation Warp Speed to make sure it can get doses out to rural communities.
Read the original story here.
Nov 23, 2020
Today, a coalition of the nation’s largest biofuels and agricultural trade groups filed a motion in the U.S. Court of Appeals in the District of Columbia asking the court to enforce its 2017 decision requiring the U.S. Environmental Protection Agency (EPA) to address its improper waiver of 500 million gallons of biofuel demand in the 2016 renewable volume obligation (RVO).
The coalition, which includes the Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, National Farmers Union, and National Sorghum Producers, issued a statement following the filing:
“It is simply unconscionable that EPA would so brazenly ignore a federal court’s order. The agency must do right by America’s farmers and biofuel producers and supporters. Together, our coalition represents millions of rural families, who should not have to resort to more court proceedings to hold EPA accountable to the law. It’s well past overdue that EPA restore the 500 million gallons and focus on restoring integrity to the Renewable Fuel Standard.”
In the July 2017 ruling of the case Americans for Clean Energy et al. v. EPA et al., the court invalidated the EPA’s improper waiver of 500 million gallons in the 2016 RVO and ordered EPA to revisit the rule. The court held that EPA’s interpretation of the “inadequate domestic supply” waiver provision “runs contrary to how the Renewable Fuel Program is supposed to work.” To date, EPA has failed to open any proceedings to reconsider the 2016 RVO, and has not restored the 500 million lost RIN gallons.
In the motion filed today, the coalition asks the court to:
- Require EPA to issue a 500 million gallon “curative obligation” on obligated parties to make up for the lost gallons;
- Require EPA to do so no more than 6 months after the court’s order;
- Require obligated parties to show compliance with the additional obligations no more than 3 months after EPA issues the curative obligation; and
- Declare that it will not extend these deadlines.
Read the motion as filed here.
Read the original story here.
Nov 16, 2020
The global biofuels industry has been strongly impacted by the COVID-19 pandemic, according to a report released by the International Energy Agency in early November, with production down approximately 11.6 percent when compared to 2019.
The IEA predicts global transport biofuel production will be at 144 billion liters (38.04 billion gallons) in 2020, down 11.6 percent from the record set last year and the first reduction in annual production in two decades. Prior to the COVID-19 pandemic, the IEA predicted a 3 percent growth in biofuel production for 2020.
Global ethanol production is expected to be at 98 billion liters this year, down 14.5 percent from 115 billion liters in 2019. About 80 percent of that reduction is expected to occur in Brazil and the U.S., according to the IEA. Global biodiesel production is expected to reach 46 billion liters this year, down 5 percent from 2019. Most of that reduction is expected in European markets.
If demand for transportation fuel rebounds to near pre-pandemic levels and policy support in key markets continues to expand, the IEA predicts that global production of transportation biofuels could rebound to the 2019 level of production in 2021, at approximately 162 billion liters. Production is expected to grow by an additional 4 percent in 2022 to 169 billion liters. The IEA said that the majority of that growth is expected to occur in Asian and South American countries.
During the 2023 to 2025 time period, the IEA said average global output of biofuels is expected to be at 182 billion liters. Ethanol is expected to account for 109 billion liters of that volume, with Brazil, China and India expected to be key growth markets. Biodiesel and renewable diesel production is expected to reach 63 billion liters annually over the 2023 to 2025 time period, up 30 percent from 2019. According to the IEA, expanding renewable diesel production in the U.S. and Singapore is expected to account for more than half of that increase.
A full copy of the IEA’s Renewables 2020 report can be downloaded form the agency’s website.
Read the original story here.
Nov 16, 2020
ELLISVILLE, Mo. — The ethanol industry is familiar with adversity and the recently elected chairperson of the Renewable Fuels Association believes a rebound is on the horizon.
Jeanne McCaherty, CEO of Guardian Energy Management, was selected as the new chair at the RFA’s annual meeting. McCaherty becomes the first female chairperson in the organization’s history and first among any national ethanol trade association.
As CEO of Guardian Energy Management, McCaherty, of Prior Lake, Minnesota, provides executive management for Guardian Energy LLC, Guardian Energy Holdings LLC and Hankinson Renewable Energy LLC, three ethanol biorefining businesses.
She has a master’s degree in biochemistry from the University of Missouri and serves on the board of directors for the Renewable Product Marketing Group LLC and the board of directors for the Minnesota Biofuels Association.
McCaherty, a longtime proponent and advocate for low-carbon renewable fuels, also serves on the Minnesota Governor’s Biofuels Council to develop recommendations to increase the incorporation of biofuels in transportation fuels in Minnesota. She succeeds Neil Koehler, co-founder and co-CEO of Pacific Ethanol, in chairing the RFA board.
“Renewable fuels have a critically important role to play in improving liquid transportation fuels. I am excited to work with the members and staff of the RFA to continue to position renewable fuels and co-products to support rural economies, improve air quality, and provide better options for consumers,” McCaherty said.
She spoke of the challenges the industry faces and federal actions that show promise for the future in a recent podcast.
“The ethanol industry is really a reasonably new industry overall and it has had a lot of very highs and a lot of very lows in the history and the evolution of that business. I would say that 2020 probably has been the low point for the industry. The pandemic has been challenging for the ethanol industry the same as it has for all other industries,” McCaherty said.
“At one point in the ethanol industry, we were down demand-wise by 45%, so prices tumbled to record lows and we’ve lost somewhere between $7 billion and $10 billion in revenue due to COVID.
“In that kind of a year it’s very difficult to say it’s a really high point in the ethanol industry, but this industry is very familiar with adversity. Many of the owners/investors are corn producers. They’re also investors in ethanol and they’re used to adversity. This isn’t something that will keep them down.”
Good News
In the midst of the pandemic, there has been good news on the ethanol front.
U.S. Department of Agriculture Secretary Sonny Perdue announced Oct. 8 a series of grants as part of Higher Blends Infrastructure Incentive Program. The agency is investing at least $22 million in grant funding to increase demand for ethanol and biodiesel.
USDA said more funding may be available from a total $100 million pool, with the $22 million projected to increase demand by more than 150 million gallons. HBIIP helps fuel distribution centers to convert to higher blends through equipment and infrastructure improvements cost sharing.
Two bills in the U.S. House — the Next Generation Fuels Act and the Renewable Fuels Standard Integrity Act — also would benefit the ethanol industry if passed.
“The Next Generation Fuels Act establishes a 98 (research octane number) fuel standard for the highest octane and also speaks to the lower greenhouse gas emissions. So, low carbon while high octane and we’re pretty excited about that. It puts a limit on the aromatics and really pushes higher ethanol blends going forward,” McCaherty noted.
“That’s one we’ll be working on and helping to move that further. It has a number of other conditions in it, including things around the Reid vapor pressure and some of the (compliance with fuel economy) credits around flex-fuel vehicles. It’s very positive for the ethanol industry and one that we’re very excited about.”
The RFS Integrity Act aims at requiring more transparency for companies seeking Small Refinery Exemptions through the EPA. The bill has been rolled into a new House energy bill, the Clean Economy Jobs and Innovation Act.
“That would set a deadline for refiners to request their exemptions from the RFS and would require the EPA to publicly release the name of those refiners requesting a waiver so that we get more transparency around SREs, how they’re working and make sure the RFS is upheld,” McCaherty said.
No Relief
Congress has yet to include the ethanol industry in any COVID-19 relief packages and McCaherty addressed that issue.
“It means obviously that we’re going to continue on without aid. It’s a very difficult time. There’s $7 billion to $10 billion in lost revenue for the ethanol industry that we believe has been a result of COVID. It’s been a very difficult time,” she said.
“We’ve had plants that have been idled. We’ve had some of the plants that have had to furlough their folks. Some are still not back up and running. The industry is essential and critical for U.S., but at the some time if a COVID relief package isn’t in the cards the industry will continue and we’ll continue to put ourselves on solid footing and move forward.”
In light of this year’s challenges, McCaherty commented on the general mood of ethanol producers.
“This is a group that’s used to adversity. They’re used to hard work and hard times. This has not been an easy year for anyone. I think everybody is a little worn out, not just ethanol producers, but everyone is a little bit worn out over COVID, but at the same time I think everybody realizes that it’s not time to sit down, but time to roll up our sleeves and continue to work,” she said.
“Ethanol is critical to these rural economies. Many of our producers also have stakes in the ethanol world and I think the mood generally is let’s get to work, let’s continue to work at positioning the ethanol industry to where it belongs.”
Read the original story here.