In the News

Ethanol Producer Magazine

Oct 28, 2020

U.S. fuel ethanol production increased by 3 percent the week ending Oct. 23, while weekly ending stocks fell by nearly 1 percent, according to data released by the U.S. Energy Information Administration on Oct. 28.

U.S. ethanol production expanded to an average of 941,000 barrels per day the week ending Oct. 23, up 28,000 barrels per day from the average of 913,000 barrels per day reported for the previous week. When compared to the 1.004 million barrels per day produced during the same week of 2019, production was down 63,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring 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 fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks of fuel ethanol fell to 19.601 million barrels the week ending Oct. 16, down 120,000 barrels when compared to the 19.721 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 1.498 million barrels.

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Ethanol Producer Magazine

Oct 26, 2020

The U.S. Grains Council conducted a webinar for producers in the Dominican Republic and Educator in mid-September to provide an update on U.S. corn and sorghum production and offer the latest information on the benefits of U.S. distillers dried grains with solubles (DDGS) for feed, poultry and swine production. The webinar also introduced distiller’s corn oil (DCO) as a potential new feed ingredient.

“We are working to build confidence in these potential buyers,” said Ana Ballesteros, USGC marketing director for Latin America. “Increasing DDGS awareness and understanding of its benefits when used in poultry and swine formulas is needed to generate a willingness to buy.”

Poultry and swine producers in the Dominican Republic do not currently use DDGS. In February 2020, the Council’s staff in Latin America set a strategy to engage with producers and purchasing groups, specifically targeting those with the volume capacity to import DDGS in combination shipments with corn and other U.S. agricultural products.

The recent webinar included 10 speakers, including five U.S.-based consultants covering the nutritional benefits of corn, sorghum, DDGS and DCO, handling and management practices, and logistics of the Latin American market.

Feed, poultry and livestock producers who are members of AFABA, an Ecuadorian poultry and livestock producers association, were also invited to attend the event after the organization reached out to the Council in search of technical information on DDGS.

“The array of topics allowed for broader discussions with markets where we feel these U.S. products could make a difference in our customers’ bottom lines,” Ballesteros said.

The Council will continue to work with producers in both countries to help them gain a deeper understanding of the benefits of DDGS and how best to formulate its use for different species. Follow up one-on-one consultations with participating companies and virtual tours of U.S. production are next steps in this engagement.

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Oct 21, 2020

Greenfield Global Inc., Canada’s largest fuel ethanol producer, announced today that it will acquire the 182 million litre (48 million gallon) per-year Corn Plus ethanol facility in Winnebago, Minnesota.

The Corn Plus facility makes ethanol for the purpose of blending into gasoline and has been shuttered since September 2019.

“This ushers in a new era of North American production for Greenfield,” said Howard Field, President & CEO of Greenfield Global.” We are excited to join producers in the United States in making the world’s cleanest and most accessible biofuel. The addition of Corn Plus to our biofuels portfolio complements our strategy of being a leading producer of renewable energy solutions and enhances our ability to service low-carbon fuel markets more effectively and efficiently.

”North American fuel markets will continue to operate as an increasingly interconnected supply chain given the market challenges of COVID-19, coupled with the recent coming into force of the United States-Mexico-Canada Agreement (USMCA). Greenfield Global’s addition of a United States based-corn ethanol facility provides the Company with a larger and more diverse geographic footprint from which to operate. Greenfield Global purchased the Corn Plus facility in a receivership process. The Company expects to produce fuel ethanol and its co-products once a startup plan is established.

“We look forward to welcoming the Corn Plus team to Greenfield, re-establishing a market for Minnesota corn growers, and working closely with the community to bring jobs back to Winnebago.” said Jean Roberge, EVP & Managing Director of the Greenfield Global Renewable Energy Business Unit. “We are confident that our best practices, paired with the technology adaptation experience of our combined staff, will produce Greenfield’s industry-leading, low carbon intensity biofuels from this facility.

”Roberge added, “Biofuels are the key to lowering greenhouse emissions in the transportation sector. This investment in our ethanol portfolio, combined with the expansion of our biorefinery in Varennes, Quebec, will significantly increase our ability to supply renewable fuel needed to help preserve the health of our planet.”

Douglas Dias, Greenfield Global’s VP Sales and Market Development, stated “Greenfield’s fuel ethanol customers will benefit from this new supply of low carbon ethanol. We are excited to offer our existing customers more resilience and broader supply options to meet their increasing demands, while serving new fuel customers in the United States.”

About Greenfield Global Inc.

Greenfield Global provides high-value, mission-critical raw materials, ingredients and additives that are vital to businesses, improve people’s lives, and preserve the health of the planet. Greenfield is the largest ethanol producer in Canada and owns and operates four ethanol distilleries, five specialty chemical manufacturing and packaging plants, and three next generation biofuel and renewable energy R&D centers in Canada and the United States. Founded in 1989, Greenfield continually develops more efficient and sustainable technologies and products while shrinking its own carbon footprint. From start-ups to the largest brands in the world, customers trust Greenfield’s extensive portfolio of premium products, regulatory expertise, and industry-leading service. Under its Pharmco and Commercial Alcohols brands, Greenfield delivers hundreds of products to thousands of Life Science, Food, Flavor, Fragrance, and Beverage customers in more than 50 countries worldwide.

To learn more, visit www.greenfield.com

Energy AgWired

Oct 22, 2020

With more than 15 million cars registered in the state, California has almost twice as many vehicles on the road than any other state in the nation, which makes it the number one market for growing domestic ethanol demand. 

To that end, the  National Corn Growers Association  (NCGA), state corn organizations, ethanol groups and the auto industry, are working with the California Air Resources Board (CARB) to conduct vehicle testing using 15 percent ethanol (E15) at the University of California at Riverside (UCR). The Renewable Fuels Association, Growth Energy, and the United States Council for Automotive Research (USCAR) are partnering on the study.

The testing will demonstrate the environmental benefits and compatibility of E15 in selected makes and models of vehicles. This process will help pave the way for sales of E15 and higher blends of ethanol in California.

“With the scope of research agreed upon and contracts signed, E15 testing in California can move forward,” said JR Roesner, Indiana farmer and Ethanol Action Team (ETHAT) member. “If we can achieve E15 as the base fuel in California, based on estimated total gasoline usage in the state in 2015, the potential market opportunity would be roughly 750 million gallons of ethanol or 260 million bushels of corn.”

Tests will be conducted on 20 late-model vehicles to measure tailpipe and evaporative emissions. Testing a broad sample of makes, models, and technology levels with both E10 and E15 blends will provide CARB with the necessary information to permit the sale of E15 in California.

“Motor gasoline volatility is varied throughout the year to ensure good cold-start and drivability while also controlling evaporative emissions,” said Brian West, NCGA contributor and former Group Leader for the Fuels and Engines Research Group at the National Transportation Research Center at Oak Ridge National Laboratory. “Summer fuel is used in certification tests, and we wanted to use retail fuel for this program. If the refiners had begun the changeover to fall/winter gasolines, we would have been significantly delayed either waiting for 2021 summer fuel or having to source a specialty fuel, which is very expensive and also has very long lead times.”

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Ethanol Producer Magazine

Oct 15, 2020

U.S. fuel ethanol production increased by nearly 2 percent the week ending Oct. 9, according to data released by the U.S. Energy Information Administration on Oct. 15. Stocks also increased by approximately 2 percent.

U.S. ethanol production increased to an average of 937,000 barrels per day the week ending Oct. 7, up 14,000 barrels per day from the average of 923,000 barrels per day reported for the previous week. When compared to the 971,000 barrels per day produced during the same week of 2019, production was down 34,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.

Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks for fuel ethanol increased to 20.008 million barrels the week ending Oct. 9, up 336,000 barrels when compared to the 19.672 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 2.053 million barrels.

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CoBank - The Quarterly

October 2020

The U.S. ethanol sector continued to recover during the quarter to a new baseline level equating to 85%-90% of pre-COVID demand. Based on EIA data on an annualized basis, weekly production averaged 14.2 billion gallons for the third quarter, 89% of the first quarter’s average production of 15.9 billion gallons.

For a representative Iowa dry milling fuel ethanol plant, industry operating margins (defined as return on operating costs but before capital costs) also improved, averaging $0.21 per gallon, up from break-even during the first quarter. The improvement occurred as supply and demand became more balanced, and active producers benefited from better productivity. 

New developments support the industry as we head into the November elections. First, the Trump administration is removing E15 federal roadblocks. The recently-introduced Next Generation Fuels Act would enable the sale of E15 fuel using E10 pumps, subject to state regulations. Second, EPA has promised to deny numerous oil refineries’ ethanol blending exemption requests. Third, Brazil has agreed to duty-free imports of U.S. ethanol for 90 days. Fourth, there is potential for financial relief to the biofuel sector in the next government spending program. Fifth, perhaps most importantly, supply and demand remain in relative balance at current production levels. 

We maintain a stable industry outlook over the next two quarters for U.S. ethanol, assuming that the economy does not experience a double dip. Our outlook assumes continued high unemployment levels and below average consumer miles driven. Our opinion could become more bullish should new coronavirus cases drastically decline and/or an effective COVID-19 vaccine is rapidly produced and widely administered. 

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Ethanol Producer Magazine

Oct 7, 2020

U.S. fuel ethanol production expanded by nearly 5 percent the week ending Oct. 2 while weekly ethanol ending stocks fell slightly, according to data released by the U.S. Energy Information Administration on Oct. 7.

U.S. ethanol production increased to an average of 923,000 barrels per day the week ending Oct. 2, up 42,000 barrels per day from an average of 881,000 barrels per day the previous week. When compared to the 963,000 barrels per day produced during the same week of 2019, production was down 40,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows last spring due to the market impacts caused by the COVID-19 pandemic.

Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuel began to recover. Production levels since July have generally stabilized in the range of 900,000 to 950,000 barrels per day, down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks of fuel ethanol fell to 19.672 million barrels the week ending Oct. 2, down 19,000 barrels when compared to the 19.691 million barrels reported for the previous week. Stocks of fuel ethanol have fallen over the past few months after reaching a record high of 27.289 million barrels the week ending April 17. When compared to the same week of last year, ethanol stocks were down 1.552 million barrels.

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Ethanol Producer Magazine

Oct 7, 2020

The U.S. exported more than 100.65 million gallons of ethanol and 1.02 million metric tons of distillers  grains in August, according to data released by the USDA Foreign Agricultural Service on Oct. 6. Exports of both products were down from the same month of last year.

The 100.65 million gallons of ethanol exported in August was up from the 74.04 million gallons exported in July, but down from the 124.79 million gallons exported in August 2019.

The U.S. exported ethanol to nearly four dozen countries in August. Canada was the top destination for U.S. ethanol during the month at 35.98 million gallons, followed by India at 10.45 million gallons, and Nigeria at 9.79 million gallons.

The value of U.S. ethanol exports was at $163.82 million in August, up from $131.77 million in July, but down from $205.37 million in August 2019.

Total ethanol exports for the first eight months of 2020 reached 905.41 million gallons at a value of $1.57 billion, compared to 1.01 billion gallons at a value of $1.6 billion during the same period of 2019.

The 1.02 million metric tons of distillers grains exported in August was down from both the 1.08 million metric tons exported in July and the 1.15 million tons exported during August of last year.

The U.S. exported distillers grains to approximately 40 countries in August. Mexico was the top destination at 138,817 metric tons, followed by Vietnam at 131,854 metric tons and South Korea at 111,048 metric tons.

The value of U.S. distillers grains exports reached $208.73 million in August, down from $227.86 million in July and $237.37 million in August 2019.

Total distillers grains exports for the first eight months of 2020 reached 7.08 million metric tons at a value of $1.5 billion, compared to 7.36 million metric tons at a value of $1.54 billion during the same period of last year.

Additional data is available on the USDA FAS website

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