In the News
Nov 7, 2023
The U.S. exported 120.49 million gallons of ethanol and 1.03 million metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 7. Exports of both products were up.
The 120.49 million gallons of ethanol exports reported for September was up nearly 18 percent when compared to the 102.26 million gallons exported the previous month and up more than 34 percent when compared to the 89.75 million gallons of exports reported for September 2022.
The U.S. exported ethanol to more than 40 countries in September. Canada was the top destination for U.S. ethanol exports at 60.42 million gallons, followed by the U.K. at 13.65 million gallons and Colombia at 8.26 million gallons.
The value of U.S. ethanol exports reached $317.81 million in September, up from both $278.41 million in August and $255.07 million in September of last year.
Total ethanol exports for the first nine months of 2023 reached 1.04 billion gallons at a value of $2.83 billion, compared to 1.07 billion gallons exported during the same period of 2022 at a value of nearly $3 billion.
The 1.03 million metric tons of distillers grains exported in September was up nearly 9 percent when compared to the 947,326 metric tons exported in August and up nearly 14 percent when compared to the 905,030 metric tons exported in September of last year.
The U.S. exported distillers grain to more than three dozen countries in September. Mexico was the top destination for U.S. distillers grains exports at 201,607 metric tons, followed by Vietnam at 139,553 metric tons and South Korea at 110,316 metric tons.
The value of U.S. distillers grains exports reached $287.01 million in September, up from both $271.65 million in August and $278.19 million in September 2022.
Total distillers grains exports for the first three quarters of this year reached 8.09 million metric tons at a value of $2.54 billion, compared to 8.57 million metric tons exported during the same period of last year at a value of $2.62 billion.
Read the original story here: USDA: Ethanol Exports Top 120 Million Gallons In September
Nov 7, 2023
WASHINGTON, D.C. – Congressman Max Miller (OH-07) today introduced the bipartisan Farm to Fly Act to create new, robust markets for American agricultural products and to strengthen domestic energy resources. Miller was joined by Representatives Mike Flood (NE-01), Angie Craig (MN-02), Brad Finstad (MN-01), Nikki Budzinski (IL-13), Ashley Hinson (IA-02), Jasmine Crockett (TX-30), and Randy Feenstra (IA-04) as original cosponsors.
The bill, which has strong support from the Ohio and national agriculture industries, as well as the aviation industry, would foster the development of Sustainable Aviation Fuels (SAF) within existing U.S. Department of Agriculture (USDA) programs, allow for greater collaboration, and ensure USDA’s SAF definitions reflect eligibility for American agricultural crops.
“The Farm to Fly Act is important for three main reasons: it will provide access to new markets for our nation’s farmers, it will drive rural economic development, and it will strengthen our domestic energy resources,” said Congressman Miller. “I’m grateful for the close collaboration between my colleagues, Ohio and American agricultural producers, and the aviation industry, and I look forward to beating the drum until we see this one through for our farmers and rural communities.”
Strong Support for Farm to Fly Legislation on Capitol Hill:
“Expanding opportunities for biofuels will not only help family farmers across the country but will also help connect more American businesses with homegrown clean energy,” said Congressman Flood. “Making the eligibility criteria for Sustainable Aviation Fuels at the U.S. Department of Agriculture clearer is a great step forward on this journey. Thank you to Congressman Miller for your leadership on the Farm to Fly Act, and I urge my colleagues on both sides of the aisle to move this commonsense legislation quickly.”
“Expanding Sustainable Aviation Fuel (SAF) production is a win-win for Minnesota’s agriculture communities, economy, and environment,” said Congresswoman Craig. “That’s why I’m introducing the bipartisan Farm to Fly Act with my colleagues Reps. Max Miller, Brad Finstad and Mike Flood to ensure the U.S. Department of Agriculture is working to support the expansion of the SAF market in Minnesota.”
“Sustainable Aviation Fuel continues to be a promising market for our ag producers and brings greater opportunity for U.S. farmers to partner with the aviation sector,” said Congressman Finstad. “I am proud to join my colleagues in introducing this bipartisan legislation, which develops new markets for Minnesota farmers, opens the door to future opportunities for rural economic development, and strengthens American energy independence with fuel grown right here at home.”
“By utilizing sustainable aviation fuel, we can cut harmful emissions, support family farmers and reduce our dependence on foreign energy sources,” said Congresswoman Budzinski. “I’m proud to join Congressman Max Miller in introducing the bipartisan Farm to Fly Act that will allow homegrown biofuels to power our aviation sector while supporting growth in rural economies. With this bill we can empower the USDA to drive a sustainable future for our aviation industry.”
“Airlines have committed to transitioning their fleets to Sustainable Aviation Fuel, and now we must act to give American Agriculture the tools it needs to rise to the occasion,” said Congresswoman Crockett. “Despite a growing market for SAF, the US is not currently producing enough SAF to meet the increasing demand. To address this, the Farm to Fly Act stands up a new initiative at USDA to ensure the agency is working to advance SAF across all its mission areas. I am proud to join Reps. Miller, Flood, Craig, Finstad, Budzinski, Hinson and Feenstra to build out Sustainable Aviation Fuel production capacity to meet rising demand for decades to come.”
“Sustainable aviation fuel (SAF) is the future of air travel. By converting agricultural biomass into airplane fuel, we can support Iowa farmers, reduce emissions by up to 94% compared to standard jet fuels, and use American energy – instead of foreign oil – to power our planes and safely transport passengers,” said Congressman Feenstra. “I’m excited to help introduce the Farm to Fly Act with my Midwestern colleagues to include SAF in USDA bio-energy programs, enhance public-private partnerships to advance SAF adoption and research, and utilize the GREET model to accurately measure the impact of SAF on emissions reductions. Representing the top biofuels-producing district in Congress, I know that Iowa has the unlimited potential to grow and produce our world’s future fuels, and this legislation will help us achieve this important goal.”
Read more here.
Oct 26, 2023
Novozymes on Oct. 26 reported that third quarter sales for its bioenergy segment were up 21 percent when compared to the same quarter of last year. Bioenergy sales for the first nine months of 2023 were up 25 percent when compared to the same period of 2022.
The company attributed the bioenergy segment’s strong performance to the continued penetration of its broad and innovative solution toolbox, allowing for higher yields, throughput, and byproduct value-capture for producers in a favorable market environment.
In particular, Novozymes said the North American market has experienced strong developments supported by a favorable market environment and roughly a 1 percent increase in U.S. ethanol production during the first three quarters of the year. U.S. ethanol production for the third quarter alone was up approximately 6 percent when compared to the same period of 2022.
Novozymes said performance was also strong outside of North America, driven by innovation as well as capacity expansion of corn-based ethanol production in Latin America. Growth was also supported by solutions for biodiesel production and sales of enzymes used in second-generation. Overall, growth was positively impacted by pricing, the company added.
Bioenergy accounted for 24 percent of Novozymes total sales during the first nine months of 2023. The company’s household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition segments, accounted for 29 percent, 22 percent, 13 percent and 12 percent of sales, respectively.
For the full year, Novozymes currently predicts bioenergy sales will be up approximately 20 percent when compared to last year. That sales growth is expected to be supported by pricing, market penetration enabled by innovation, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production. Growth is also expected to be supported to a degree by growing sales of solutions for second-generation ethanol production.
Overall, Novozymes reported an 8 percent increase in sales for the third quarter of 2023, with sales for the first nine months of the year up 5 percent when compared to the same periods of 2022.
Read the original story here.
Oct 24, 2023
Archer Daniel Midland Co. Chairman and CEO Juan Luciano on Oct. 24 reported the company’s Carbohydrates Solutions business segment achieved record third quarter results. Robust ethanol demand and strong margins contributed to that strong performance.
ADM’s Carbohydrate Solutions segment delivered $460 million in operating profit during the third quarter, up from $309 million during the same period of last year. The Starches and Sweeteners subsegment, including ethanol production from the company’s wet mills, reported $395 million in operating profit, up from $327 million. The Vantage Corn Processors subsegment, which includes the company’s dry mill facilities, reported $65 million in operating profit, up from a $18 million loss reported for the same period of 2022. The company attributed the subsegment’s significantly improved performance to robust demand and margins for ethanol.
Vikram Luthar, chief financial officer of ADM, said the company remains constructive on ethanol margins, driven by solid domestic demand and healthy U.S. exports, which are supported by lower competing exports from Brazil due to higher sugar prices. Results for the fourth quarter are expected to be similar to the same period of last year, but with upside potential if the current margin structure holds, Luthar said.
During the third quarter earnings call, Luciano also fielded questions on ADM’s plans for carbon capture and sequestration (CCS) and concerns over permitting issues. The company has been operating a carbon CCS project at its facility in Decatur, Illinois for more than a decade. Two injection wells have already been developed. Luciano said the ADM plans to create five more injection wells over the next few years. Part of the planned project will involve bringing biogenic CO2 generated by the company’s ethanol plants through pipelines. He said permitting is underway for two of those pipelines, along with work related to right of way, acquisitions and related agreements.
Overall, ADM reported 1.421 billion in segment operating profit for the third quarter, down from $1.559 billion during the same period of last year. Adjusted operating profit was $1.492 billion, down from $1.579 billion. Earnings per share for the third quarter were at $1.52, down from $1.83 during the same quarter of 2022, with adjusted earnings per share at $1.63, down from $1.86.
Read the original story here.
Oct 18, 2023
Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn., on Oct. 17 reintroduced the Adopt Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Act, which aims to require the U.S. EPA to update its greenhouse gas (GHG) modeling for all renewable fuels under the Renewable Fuel Standard.
Previous versions of the bill have been introduced several times, including in the U.S. Senate in 2020 and 2021 and the U.S. House of Representatives in 2021.
The Adopt GREET Act would specifically require the EPA to apply Argonne National Laboratory’s GREET model to any fuel for which the agency has approved a pathway and deemed qualified for the RFS. The bill would also require the EPA to update its modeling every five years or report to congress to affirm its modeling is current or otherwise explain why no updates were made.
“It’s past time for the EPA to update its greenhouse gas modeling for all biofuels, which would more accurately reflect the emissions reductions achieved by ethanol, biodiesel, and sustainable aviation fuel,” Thune said. “This would not only underscore how homegrown biofuels can be a cleaner part of our energy security and environmental policy, driving value for South Dakota farmers, but also make biofuel exports more attractive to countries seeking to lower their transportation emissions.”
“It is critical that the EPA’s greenhouse gas modeling for biofuels be updated to fully reflect the newest science and technology,” Klobuchar said. “This legislation will allow us to fully recognize how ethanol, biodiesel, and sustainable aviation fuel can contribute to our emissions reduction goals while expanding and promoting the use of clean energy and rural jobs across the country.”
The Renewable Fuels Association is thanking Thune and Klobuchar for reintroducing the bill. “This legislation would help ensure that renewable fuel regulations are based on sound science and current data, not speculative theories and obsolete information,” said Geoff Cooper, president and CEO of the RFA. “Around the world, the Argonne National Laboratory GREET model is recognized as the gold standard for analyzing the lifecycle greenhouse gases impacts of renewable fuels like ethanol, and the model is regularly updated to reflect efficiency improvements and technological advancements in the fuel production process. We thank Senators Thune and Klobuchar for bringing scientific integrity and accuracy to the federal government’s regulatory actions on renewable fuels.”
Growth Energy is also welcoming the reintroduction of the Adopt GREET Act. “Biofuels are playing a crucial role in helping our nation meet our energy and climate goals,” said Emily Skor, CEO of Growth Energy. “As a country, we can’t afford for renewable, affordable biofuels to be held back by outdated and inaccurate modeling. Years of rigorous, peer-reviewed research have shown that corn ethanol already cuts greenhouse gas emissions nearly in half compared to gasoline. Unfortunately, EPA’s outdated model fails to fully capture the enormous decarbonization potential of ethanol. Growth Energy and its members applaud Senators Thune and Klobuchar for sponsoring this commonsense legislation. It’s past time for the EPA to implement sound science and fully recognize biofuels’ outsized role in creating our clean energy future.”
The American Coalition for Ethanol is speaking out in support of the bill. “We appreciate Senator Thune’s and Klobuchar’s legislation, which helps lay the foundation for ethanol to decarbonize the transportation sector by requiring EPA to apply the latest GREET model to more accurately account for corn ethanol’s carbon intensity when establishing regulations which could impact ethanol use in the future,” said Brian Jennings, CEO of ACE.
“The U.S. Department of Energy GREET model, which is widely recognized as the gold standard tool to audit the energy and environmental effects of transportation fuels such as ethanol and gasoline, indicates that corn ethanol reduces greenhouse gases by 50 percent compared to gasoline,” he added.
“ACE is focused on helping farmers and ethanol producers maximize their low carbon investments, and while no model can fully replicate real-world activities, GREET is equipped with the best available science on lifecycle GHG emissions of transportation fuels and technologies because the assumptions and estimates used in GREET are under constant peer review and updates to the model occur annually,” Jennings continued.
In addition to the RFA, Growth Energy and ACE, the Adopt GREET Act is also supported by POET, Gevo, the National Corn Growers Association and the National Oilseed Processors Association.
Bill cosponsors include Sens. Tammy Baldwin, D-Wis.; Sherrod Brown, D-Ohio; Tammy Duckworth, D-Ill.; Dick Durbin, D-Ill.; Joni Ernst, R-Iowa; Deb Fischer, R-Neb.; Chuck Grassley, R-Iowa; Roger Marshall, R-Kan.; Pete Ricketts, R-Neb.; and Mike Rounds, R-S.D.
Read the original story here.
Oct 16, 2023
A healthy summer travel season and attractive fuel ethanol prices helped support very strong fuel ethanol production volumes in the U.S. during the third quarter, according to CoBank’s latest quarterly research report, released Oct. 11.
Production averaged 16.1 billion gallons on an annualized basis during the third quarter, up from 15.4 billion during the second quarter.
According to CoBank, third quarter profitability exceeded 50 cents per gallon, up from 20 cents per gallon during the third quarter of 2022. That increase in operating margins reflected a 23 percent decline in corn feedstock costs and a 59 percent reduction in natural gas operating costs as the market impacts of the Ukraine invasion fade, according to the report.
Strong domestic demand for fuel ethanol helped reduce stocks, which CoBank said are now approximately 17 below the March 2023 peak. The report predicts that continued steady demand and tight ethanol stocks will support fuel ethanol prices into the fourth quarter. Near-term feedstock availability is expected to be favorable for ethanol producers, impacted by lagging corn exports that are exacerbated by low water levels in the Mississippi River.
CoBank also addresses fuel ethanol exports, noting that export levels for the first seven months of 2023 were down more than 12 percent when compared to the same period of last year. The report primarily attributes the decline to reduced exports to Bazil, which is experiencing an estimated 5 percent increase to domestic ethanol production.
A full copy of the quarter reports is available on the CoBank website.
Read the original story here.
Sep 27, 2023
Greenfield Global Inc., the leading producer, manufacturer and distributor of high purity and specialty alcohols, solvents, and custom solutions, has partnered with REMET Alcohols, Inc. to address the growing demand in California and the Western US for bulk and packaged high-purity alcohol and denatured alcohol. With today’s announcement, Greenfield extends its bulk manufacturing and distribution capability and footprint westward, enhancing supply for the industrial, food, fragrance, pharmaceutical, personal care, and beverage industries in California, Nevada, Utah, Oregon, Washington and Arizona.
“After an extensive search for the right partner to expand our operations west of the Mississippi, REMET Alcohols was the clear choice,” said Howard Field, President and CEO, Greenfield Global. “REMET Alcohols has an amazing team and years of experience meeting the quality and service needs of customers on the West Coast. Their deep expertise in logistics, rail connections and bulk tankage will allow us to satisfy the growing demand in the Western United States. Greenfield will continue to directly supply its customers, while REMET will procure Greenfield ethanol and manage their own clients, simplifying the process for all parties involved.”
Under the agreement, the partnership offers unmatched supply security, distribution capabilities in fast-growing markets, and enhanced efficiency to both REMET Alcohols and Greenfield customers by:
- Adding the Greater Los Angeles area to Greenfield’s Connecticut and Kentucky manufacturing portfolio.
- Combining REMET Alcohols’, onsite storage, rail, and manufacturing capabilities with Greenfield’s efficient, and reliable end-to-end supply chain oversight for premium ethanol products.
- Providing REMET Alcohols’ customers with industry-leading high purity alcohols directly from Greenfield’s distilleries, giving them the confidence in security of supply and quality.
This announcement follows Greenfield’s recent expansion in high-purity alcohol production, boosting its annual output to over 70 million gallons per year across three distilleries.
“This is certainly a win-win because REMET Alcohols’ tried and true bulk and packaged blending and distribution service will be complimented by Greenfield’s gold standard quality in ethanol production, and visa versa.” said John S. Paraszczak, President and CEO at REMET® Corporation. “REMET owes some of its success to long-term relationships and superior customer satisfaction – and we are committed to maintaining these qualities and results in this new partnership with Greenfield.”
About Greenfield Global Inc.
Since 1989, Greenfield Global has been the leading supplier of high-purity alcohols, specialty solvents, custom blended solutions and fuel ethanol to businesses worldwide, ranging from Fortune 500 companies to sole proprietorships.
Greenfield’s primary markets are renewable fuels, beverage alcohols, life science, food, flavor, fragrance, personal care and industrials. Annually, the company fulfills over 35,000 orders in more than 50 countries through its extensive global supply chain, which includes 5 alcohol distilleries, 5 blending and packaging facilities, and 8 warehouses allowing Greenfield to deliver within 1-3 days. The company also operates one of the largest anaerobic digestion facilities in North America, converting more than 120,000 MT of source-separated organics every year to produce renewable natural gas.
Greenfield’s low-carbon ethanol helps industry decarbonize and meet net-zero targets, while its team of researchers and engineers continue to innovate and produce other sustainable fuels and chemicals such as green hydrogen, green methanol, sustainable aviation fuel and renewable natural gas.
The company’s mission statement is to unlock the potential of people, partnerships and nature to accelerate sustainable solutions for the health of the planet.
Headquartered in Toronto, Canada, Greenfield Global is family owned and operated and has been awarded “Canada’s Best Managed Companies” Platinum-level designation since 2015.
For more information, please visit www.greenfield.com
About REMET Alcohols, Inc.
Founded in 1985 REMET Alcohols, Inc., has been distributing the highest quality Pure Ethyl Alcohol and blending all TTB approved Specially Denatured Alcohol formulations, for the food, flavors, personal care, vinegar, and pharmaceutical industries.
REMET Alcohols is dedicated to their customers’ success, by providing a personalized service, providing quality products, building long-term relationships and superior overall customer satisfaction.
REMET Alcohols has an ongoing commitment to maintain high standard and ethics making them the partner of choice in the Ethanol Industry.
Headquartered in La Mirada, CA, REMET Alcohols is a wholly owned subsidiary of REMET Corporation.
For more information, please visit www.remetalcohol.com
Read the original press release here.
Oct 5, 2023
U.S. ethanol exports scaled back 10% to 102.3 million gallons (mg)—a low for the year yet the eighth straight month to top 100 mg. Canada was our largest destination for the 29th consecutive month with exports of 62.4 mg, just 0.2% shy of last month’s record. As such, our northern neighbor accounted for nearly two-thirds of total August sales. Exports to the United Kingdom pared back 19% to 13.5 mg. Colombia increased its U.S. imports by 151% to 10.7 mg, the largest monthly volume in almost 3 years. Shipments to the European Union dropped 24% to 5.4 mg, the lowest imports this year. Essentially all remaining ethanol exports were destined for Peru (4.5 mg), Mexico (2.1 mg), Singapore (2.0 mg), and Jamaica (1.3 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 920.5 mg, which lags 7% behind last year at this time.
The U.S. imported 10.5 mg of undenatured ethanol from Brazil and minimal gallons of denatured ethanol from Austria and France. This was the first month of substantive imports recorded in 2023.
Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, eased 5% to 947,326 metric tons (mt). A quarter of shipments landed in Mexico (234,674 mt, up 27% from July), our largest DDGS market for the 14th consecutive month. Exports to Vietnam lifted for the 7th consecutive month, up 6% to 131,232 mt. DDGS exports to Indonesia tightened 28% (87,015 mt), but South Korea sales rebounded 29% (83,425 mt), and Morocco purchased record volumes (59,367 mt). Rounding out our top ten customers in August were Canada (59,097 mt), New Zealand (30,799 mt), Colombia (28,887 mt), Taiwan (28,832 mt), and China (27,298 mt). Year-to-date U.S. DDGS exports total 7.06 million mt, which lags 9% behind last year at this time.
Read the original story here.
More...
Sep 27, 2023
The Federal Aviation Administration on Sept. 25 launched a new competitive grant program that, in part, can support projects to add sustainable aviation fuel (SAF) production capacity to existing renewable diesel and ethanol plants.
The newly launched $300 million funding opportunity aims to support projects to reduce carbon pollution from aviation. Approximately $245 million of that funding will support sustainable aviation fuel (SAF) infrastructure projects, with $47 million allocated to support low-emission aviation technology projects.
The funding is being offered through the Fueling Aviation’s Sustainable Transition program, which was established by the Inflation Reduction Act. The $245 million in available FAST-SAF grants will focus on producing, transporting and blending SAF with the goal of building up regional SAF supply chains and increasing SAF use. The $47 million in available FAST-TECH grants will accelerate aviation technology projects that reduce greenhouse gas (GHG) emissions, improve airport fuel efficiency, and increase the usage of SAF.
Eligible entities for the program are broad, including airports, air carriers, universities, aviation and aerospace companies, state and local governments and nonprofit organizations. The FAA opened a public comment period related to the the FAST-SAF and FAST-TECH program earlier this year.
FAS-SAF grants can support a wide range of projects related to SAF production, SAF transportation, SAF blending and SAF storage. Funding opportunity documents published by the FAA specifically note that FAST-SAF funds can be used to support projects to upgrade existing fuel production facilities to produce SAF; add equipment to existing renewable diesel plants to enable SAF production; and install conversion equipment at ethanol plants to produce SAF via an alcohol-to-jet pathway.
Applications for the FAST-SAF and FAST-TECH programs are due Nov. 27. Additional information is available on the FAA website.
Read the original story here.
Sept 25, 2023
Corn use for fuel ethanol production in July was up when compared to both the previous month and the prior year, according to the September edition of the USDA National Agricultural Service’s Grain Crushings and Co-Products Production Report.
Total corn consumed for alcohol and other uses was at 504 million bushels in July, up 2 precent when compared to June and up 1 percent from July 2022. Usage included 92 percent for alcohol and 8 percent for other purposes.
Corn consumed for fuel alcohol production reached 454 million bushels in July, up 3 percent when compared to the previous month and up 2 percent when compared to the same month of last year. Corn consumed for dry milling fuel production and wet milling fuel production was 91.9 percent and 8.1 percent, respectively.
Corn consumed for industrial alcohol production reached 7.19 million bushels in July, up from 6.26 million bushels in in June and 4.75 million bushels in July of last year. Corn consumed for beverage alcohol fell to 3.4 million bushels in July, down from 5.41 million bushels the previous month and 4.88 million bushels in July 2022.
At dry mills, condensed distillers solubles production was at 110,547 tons in July, down from 117,041 tons the previous month, but up from 94,830 tons in July of last year. Corn oil production was at 187,808 tons, down from 184,370 tons in June and 187,853 tons in July 2022. Distillers dried grains production expanded to 404,109 tons, up from both 390,664 tons in June and 334,122 tons in July of last year. Distillers dried grains with solubles production fell to 1.78 million tons, down from 1.79 million the previous month and 1.93 million tons in July of last year. Distillers wet grains production reached 1.31 million tons, up from both 1.3 million tons in June and 1.28 million tons in July 2022. Modified distillers grains production was at 430,169 tons, up from 414,953 tons the previous month, but down from 495,386 tons in July of last year.
At wet mills, corn germ meal production was at 48,269 tons in July, up from 45,709 tons in June, but down from 57,800 tons in July 2022. Corn gluten feed production was at 277,997 tons, up from both 270,060 tons in June and 271,334 tons in July of last year. Corn gluten meal production expanded to 119,450 tons, up from both 110,430 tons the previous month and 105,796 tons in July 2022. Wet corn gluten feed production reached 224,484 tons, up from 179,905 tons in June and 221,764 tons in July of last year.
Carbon dioxide captured at both dry and wet mills fell to 207,926 tons in July, down from 225,597 tons the previous month and 240,189 tons in July 2022.
Read the original story here.
National Corn Growers Association
Sep 15, 2023
TheNational Corn Growers Association (NCGA) sent a letter this week to the Environmental Protection Agency addressing recent concerns raised by the agency’s scientific advisory board about the environmental benefits of ethanol.
In a letter sent to EPA Administrator Michael Regan on Thursday, NCGA CEO Neil Caskey noted that the research shows unequivocally that ethanol is important to addressing climate change.
“There are no shortage of studies on the environmental benefits of corn ethanol,” Caskey said. “The Department of Energy’s Argonne National Laboratory, for example, has conducted extensive research on the matter and concluded that corn ethanol has reduced GHG emissions in the U.S. by 544 million metric tons from 2005- 2019 and that the feedstock’s carbon intensity is 44 percent lower than that of petroleum gasoline.”
The letter was sent after EPA’s scientific advisory board submitted draft commentary on theVolume Requirements for 2023 and Beyond under the Renewable Fuel Standard Program. In the commentary, the advisory board questions ethanol’s ability to significantly lower greenhouse gas emissions and raises concerns that the production of ethanol increases land use.
The letter noted that corn growers are doing more with less land.
“American farmers planted an estimated 94.1 million acres of corn in 2023, which falls short of the more than 100 million acres corn farmers planted a century ago,” Caskey noted. “In the past decade, U.S. corn production has been over six times the production of the 1930s with fewer corn acres.”
Caskey also highlighted ethanol’s importance in advancing the Biden administration’s climate agenda.
“It is important to note that any decision that hampers the use of these environmentally friendly products would complicate President Biden’s ambitious climate goals, which will almost certainly require the use of biofuels, such as corn ethanol, to be successful,” he said.
Caskey will provide verbal remarks before the SAB later this month.
Read the original story here.
Sep 18, 2023
Potential policy changes in Asia could create massive demand for imported ethanol that U.S. producers are ready to meet. The U.S. Grains Council conducted several events across the continent this summer to support that goal by informing local government officials and industry leaders about the positive impact of implementing higher ethanol blends in their countries.
The Vietnam Ministry of Industry and Trade, Vietnam Petroleum Association and the USGC jointly organized the first iteration of Decarbonize Asia: Vietnam Biofuels Forum in July to discuss technical, commercial and environmental considerations for the expansion of fuel ethanol use in the country.
Approximately 150 participants, including regulators, policymakers, Vietnamese biofuel producers and fuel companies, international vehicle manufacturers, technology providers and academia, attended the forum. Additional presentations focused on Vietnam infrastructure and vehicle compatibility with E5 and E10; Southeast Asia ethanol trends and developments; U.S. ethanol sustainability; ethanol-to-jet fuel pathways; carbon sequestration technologies; and consumer sentiment about ethanol in Vietnam.
The forum was an opportunity to showcase the benefits of U.S. biofuels while Vietnam’s government is evaluating a potential policy action to migrate its E5 RON92 mandate to all grades of gasoline. An E5 mandate in Vietnam would increase ethanol demand by 400 percent and create a potential export market of 95 million gallons per year for U.S. fuel ethanol.
The strategic ethanol partnership between Vietnam and the United States is a strong example of how our two countries can work together to find mutually beneficial solutions to decarbonize road transportation, bolster fuel security, improve human health and generate further investment against the backdrop of the clean energy transition.
The international transportation sector, a significant contributor to carbon emissions, plays a crucial role in this process. The urgency to reduce carbon emissions has led more than 60 countries worldwide to adopt low carbon fuel policies to capture the environmental, human health and economic benefits of ethanol.
The Taiwanese government, motivated by the effects of climate change, has set an ambitious goal of achieving net-zero carbon emissions by 2050. To accelerate progress, the council held a policy discussion meeting, the Diversified Carbon Reduction & Sustainable Development Forum in Taipei, Taiwan, in June.
The meeting attracted industry representatives from sectors including energy, transportation, environmental protection and the vehicle industry.
The USGC’s Taiwan office is consolidating these recommendations into a comprehensive policy proposal on behalf of the industry. Additionally, the United States’ experience in net-zero transportation policy, specifically in the low-carbon fuel domain, is expected to advance cooperation between Taiwan and the United States and open avenues for U.S. producers to supply the country’s growing interest and need for biofuels.
The council has also been active with programming in Korea and Japan, laying the groundwork for higher biofuel blends throughout the region. By building strong relationships and establishing a track record of continued engagement in Asia, U.S. ethanol producers can feel confident about the emergence of new and larger global marketplaces with ample opportunities for sales.
Read the original story here.
Sep 13, 2023
according to date released by the U.S. Energy Information Administration on Sept. 13. Ethanol stocks were down 2 percent and exports were down 17 percent.
Ethanol production averaged 1.039 million barrels per day the week ending Sept. 8, up 27,000 barrels per day when compared to the 1.012 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Sept. 8 was up 76,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 21.171 million barrels the week ending Sept. 8, down 450,000 barrels when compared to the 21.621 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Sept. 8 were down 1.672 million barrels.
Fuel ethanol exports averaged 68,000 barrels per day the week ending Sept. 8, down 14,000 barrels per day when compared to the 82,000 barrels per day of exports reported for the previous week. Data on weekly ethanol exports is not available for the corresponding week of 2022 as the EIA began reporting weekly data on fuel ethanol exports in June 2023. According to EIA data, no fuel ethanol imports were reported for the week ending Sept. 8.
Read the original story here.
Sep 12, 2023
The U.S. Department of Agriculture will spend up to $400,000 to adjust a federal greenhouse gas (GHG) emissions model to ensure that aviation fuel made from corn-based ethanol is eligible for hefty subsidies, Agriculture Secretary Tom Vilsack said at a conference on Tuesday.
"We’re working on the modeling to make sure that there’s a broad array of feedstocks that can qualify, including ethanol," he said at a conference hosted by biofuels lobby group Growth Energy.
Vilsack's comments are his latest effort to calm a biofuel industry concerned it will be left out of the multibillion-dollar market for sustainable aviation fuel (SAF) airlines and the administration of President Joe Biden see as key to reducing transportation emissions.
Last year's Inflation Reduction Act included lucrative tax credits for SAF producers who can show with an approved scientific model that their fuel emits 50% less greenhouse gas than gasoline.
The Biden administration is divided over whether to grant a request from the biofuels industry to allow the use of the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
Environmental groups say it underestimates emissions from the displacement of farmland or vegetation to grow crops for biofuels.
Vilsack, who supports the use of GREET, said the USDA is making adjustments to the model.
"We’re spending our own resources at USDA to make sure the GREET model is where it needs to be," he said.
The agency has identified between $300,000 and $400,000 in funds for the effort, which will be done by the end of the year, Vilsack said.
The USDA did not respond to questions about what specific adjustments the agency is making to GREET.
Vilsack also emphasized his efforts to build support for the GREET model in meetings with the secretaries of transportation, environment, and treasury.
A decision on the modeling issue is expected from the Treasury Department in December, Reuters reported on Sept. 6.
Read the original story here.
Sep 12, 2023
With Congress back in session after the August recess, a new survey from the polling firm Morning Consult found continued strong voter support for policies promoting the use of lower-cost, lower-carbon American-made ethanol. In the latest results, registered voters also indicated robust support for specific legislation to allow the year-round sale of E15 (fuel containing 15 percent ethanol), as well as policy that would promote the production of more flex fuel vehicles capable of using the lower-cost E85 fuel blend.
“Voters across the country clearly want to see solutions that will help them save money at the pump while also improving the environment and public health. Consumers want greater access to lower-carbon, lower-cost renewable fuels,” said Renewable Fuels Association President and CEO Geoff Cooper. “This nationwide poll of more than 2,000 voters shows strong support for important legislative proposals that are currently pending in the House and Senate. We are calling on Congress to listen to their constituents and get this legislation over the goal line before the end of the year. Now is the time for action.”
Among the results:
- 62 percent of those surveyed had a favorable opinion of ethanol, while only 17 percent had an unfavorable opinion; of those who have an opinion either way on ethanol, nearly four out of five voters (79 percent) support it.
- 67 percent support the Renewable Fuel Standard, with 19 percent offering no opinion and 14 percent opposed. This is the highest percentage of support since RFA first began surveys with Morning Consult in 2016.
- 67 percent also support the United States increasing the availability of the E15 blend, and 62 percent believe it is very or somewhat important to promote the production and sale of flex fuel vehicles (FFVs). Only 14 percent opposed the expansion of E15, and just one out of five respondents said it isn’t important to increase production of FFVs.
When it comes to specific legislation now pending before Congress:
- 63 percent support the Flex Fuel Fairness Act, which would encourage automakers to expand production of flex fuel vehicles that can run on E85. The bill would create an incentive for flex fuel vehicle production similar to the incentive already in place to encourage automakers to expand production of electric vehicles.
- 61 percent support the Consumer and Fuel Retailer Choice Act, which would allow E15 to permanently be sold nationwide on a year-round basis. Only 15 percent of voters oppose the legislation.
- Likewise, 61 percent support the Next Generation Fuels Act, which would establish a high-octane, low-carbon fuel standard, with just 14 percent expression opposition.
The online survey was conducted of 2,013 registered voters Sept. 6-9, and has a 2 percent margin of error. Click here for the topline results of this national tracking poll.
Read the original press release here.
Sep 7, 2023
U.S. ethanol production capacity increased by 18 MMgy between Jan. 1, 2022, and Jan. 1, 2023, despite five fewer production facilities being in existence, according to data released by the U.S. Energy Information Administration in August.
The EIA data indicates the U.S. had 187 ethanol plants as the beginning of this year, down from 192 reported for the same time last year.
Petroleum Administration for Defense District (PADD) 2, which is located in the Midwest, contains the highest number of ethanol plants at 173, down from 177 last year. PADD 1, located along the East Coast, has three facilities, unchanged from last year. PADD 3, located along the Gulf Coast, also has three ethanol plants, while PADD 4, the Rocky Mountain Region, has four ethanol plants, both unchanged from 2022. The number of facilities in PADD 5, which includes the West Coast, dropped from five in 2022 to four in 2023.
Total ethanol plant capacity was at 17.663 billion gallons per year as of Jan. 1 of this year, up from 17.38 billion gallons per year at the same time of 2022. Capacity in PADD 2 increased by 323 MMgy, while capacity in PADD 4 increased by 20 MMgy and capacity in PADD 5 fell by 60 MMgy. Capacity was unchanged in PADD 1 and PADD 3.
Read the original story here.