DDGS Exports to China Returning to Normal

Exports of U.S. distillers dried grains with solubles (DDGS) are starting to return to normal levels, according to the latest numbers for March.

Patriot Renewable Fuels DDGsThe Renewable Fuels Association reports that exports of the animal feed ethanol co-product rose in March for the fourth consecutive month, at 923,515 metric tons (mt), up 15% from February, with half of those shipments going to China. Exports of DDGS to China have been increasing this year after falling off last year due to a biotech trait issue. If normal shipments to China resume on an ongoing basis, 2015 theoretically could see total exports reach the 11 million mt mark. Mexico, Canada, Vietnam, and Thailand account for most of the remaining global market.

U.S. exports of ethanol in March were down slightly from February at 83.8 million gallons (mg), but that still represents the third-highest monthly volume in the last 12 months. Brazil and Canada accounted for half of total U.S. ethanol exports in March, followed by Oman and South Korea. The Netherlands, Tunisia and Nigeria were other key destinations in March.

Brazil Ethanol Group Moves Summit Dates

unica1A group representing sugarcane ethanol producers in Brazil is rescheduling its biennial meeting. The Union of Sugar Cane Industry Association (UNICA) has moved its Ethanol Summit 2015 to July 6-7, 2015 at the Golden Hall of World Trade Center to accomodate Brazilian President Dilma Rousseff, who will be in Washington, D.C., on the original dates at the end of June.

The meeting brings together businessmen from various levels of government authorities, researchers, investors, suppliers and academics in Brazil and abroad.They are expected about 1,500 participants to follow nearly a hundred lectures, presentations, discussions and debates that will take place in large plenary sessions, thematic panels and opening and closing ceremonies as well as parallel events.

“This is a significant year for the sugarcane industry. Key decisions and very important measures that can contribute to a better future of agribusiness, are underway, both in Brazil and on the world stage, increasing the importance of the Summit as the main forum for discussions on the most relevant topics for the energies and products renewable coming from sugarcane “said the president of UNICA, Elizabeth Farina.

Registration for the event opens in the coming days.

Biofuels Leaders Ask President for Meeting

A dozen organizations and companies representing biofuels interests this week sent a letter to President Obama asking for a meeting on proposed rules under the Renewable Fuel Standard (RFS) due to come out next month.

fuels-americaThe letter comes on the heels of an analysis from the Biotechnology Industry Organization (BIO) showing how EPA delays in setting volume requirements (RVOs) under the RFS have resulted in the loss of some $13.7 billion in investment in advanced biofuels like cellulosic ethanol. The letter was signed by BIO, the Renewable Fuels Association, Growth Energy, Advanced Ethanol Coalition, National Corn Growers Association, Association of Equipment Manufacturers, POET, DSM, Novozymes, and Abengoa.

“The EPA’s proposal in 2013 was an enormous disservice to you and your legacy, Mr. President,” the letter states. “Prior to the release of that proposal, we had asked to meet with the EPA, but were rebuffed. We would like to work with you to ensure that the mistake is not repeated.”

In addition to the letter and the analysis from BIO, the Fuels America coalition is running digital ads this week on Politico’s Environment & Energy section that say, “Will the next generation of biofuels be created in the United States or China? It’s up to you, Mr. President. Support the Renewable Fuel Standard.”

RFS Uncertainty Chills Advanced Biofuel Funding

biologoA new analysis from the Biotechnology Industry Organization (BIO) finds delays in rulemaking for the Renewable Fuel Standard (RFS) have chilled necessary investment in advanced and cellulosic biofuels.

According to the analysis, the industry has experienced an estimated $13.7 billion shortfall in investment over the past two years as the Environmental Protection Agency has delayed setting volume obligations for biofuels under the RFS.

(EPA) was nine months late issuing the 2013 RVOs and is more than 17 months late in issuing the 2014 rule. Further, the agency has made cellulosic biofuel producers wait an average of 29 months (more than two years) for approval of production pathways. Currently, 29 companies have unresolved petitions filed with EPA and they have been waiting on average more than 32 months for resolution. A majority of an estimated $13.7 billion shortfall in investment for cellulosic and new advanced technologies should therefore be attributed to EPA’s delays in issuing timely rules.

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, notes that the situation came about just as plants were beginning to reach the commercial stage. “The chill in investment has had the heaviest impact on cellulosic biofuel developers,” said Erickson. “The delays in rulemaking have also undercut the industry’s ability to create new employment opportunities, resulting in the loss of more than 80,000 direct jobs.”

According to BIO, the industry has invested more than $5 billion in first-of-a-kind demonstration and commercial-scale biorefineries around the world. The analysis finds that as of April 2015, there are five commercial cellulosic biorefineries with a combined capacity of more than 50 million gallons within the United States and registered to meet the goals of the RFS, along with several pilot and demonstration plants. Additional commercial biorefineries are under construction.

Retailers Tout E15 in New Video

A new video has retailers extolling the virtues of E15. Clear the Air Chicago, a coalition advocating to make the higher blend of ethanol available citywide, is behind the video in which the retailers credit E15 with boosting business, improving customer satisfaction, and providing reliable service, while saving drivers 5 to 15 cents per gallon.

“It’s been a windfall for us,” said Roger Green, Station Owner from South St. Paul, Minnesota. “It’s been a huge increase in our inside store sales and our volume sales.”

The City of Chicago is considering a proposal that will bring E15 to Chicago gas stations.

DOT Announces New Rail Car Standards

rfa-railcarU.S. Department of Transportation (DOT) today announced a final rule for the safe transportation of flammable liquids by rail.

The final rule, developed in coordination with Canada, focuses on “safety improvements that are designed to prevent accidents, mitigate consequences in the event of an accident, and support emergency response.”

“Safety has been our top priority at every step in the process for finalizing this rule, which is a significant improvement over the current regulations and requirements and will make transporting flammable liquids safer,” said U.S. Transportation Secretary Anthony Foxx.

Bob Dinneen, president and CEO of the Renewable Fuels Association, believes the new rule strikes “a fair balance in setting comprehensive standards while at the same time being sensitive to the limitation of retrofit capacity by giving less hazardous flammables — like ethanol — additional time to retrofit railcars.”

“We applaud the Department of Transportation for working to harmonize these regulations with Canada; for adopting a risk-based approach that prioritizes the most dangerous and highly-volatile flammables like crude oil while giving medium hazard liquids like ethanol additional time to come into compliance, for recognizing the limitations of the retrofit capacity, and, for establishing a regular reporting process for the retrofit schedule,” added Dinneen.

Growth Energy CEO Tom Buis, however, expressed disappointment with the new rule. “Although we are pleased that this rule begins to acknowledge the difference between cars in ethanol and crude service, we are extremely disappointed that regulators are requiring extensive changes to the ethanol rail fleet, while seemingly ignoring the number one cause of these accidents – broken rails and poor track condition,” said Buis.

The new rule requires a phase out or retrofit of all DOT-111 railcars transporting crude oil and ethanol by May 2023. Specifically, the rule requires a phase out or retrofit of all unjacketed CPC-1232 railcars used to ship ethanol by July 2023. Additionally, a new tank car standard has been put in place that establishes the DOT-117 as the new railcar to ship oil and ethanol. The DOT-117 includes a 9/16 inch steel hull, roll over protection, full height head shields, top fitting protection, and jacketing with thermal protection.

U.S. Ethanol Exports Rebound in 2014

usda-fasUSDA’s Foreign Agriculture Service reports that exports of U.S. ethanol exports rebounded last year after two years of declines. It was the second highest level of ethanol exports in history, making the United States the largest exporter of ethanol in the world, surpassing Brazil for the second time.

Value and volume of ethanol exports were both up approximately 35 percent from 2013, although still below the record set in 2011. At nearly 3.2 billion liters (836 million gallons), U.S. ethanol exports were worth more than $2 billion dollars. Six percent of ethanol produced in the United States was exported last year, shipped to a more diverse range of markets. Exports to Canada accounted for 40% of the total and while exports to Brazil and Europe dropped, dramatic increases were seen in markets such as the Philippines, South Korea, and the United Arab Emirates.

On the other side, U.S. ethanol imports (including both fuel and non-fuel ethanol) dropped by more than half in 2014, to less than 900 million liters, the lowest level since 2010. At the same time, domestic ethanol production jumped nearly eight percent in 2014, reaching a record 54 billion liters (14.3 billion gallons).

Read the entire FAS report here.

Ethanol Report from NAFB Washington Watch

ww15-dinneen-kenMembers of the National Association of Farm Broadcasting were on Capitol Hill this week for their annual Washington Watch, and the Renewable Fuels Association was once again pleased to participate. RFA president and CEO Bob Dinneen was interviewed by dozens of broadcasters from around the country addressing a number of different topics.

ethanol-report-adIn this edition of the Ethanol Report, Sabrina Hill of AgNet West in California talks with Bob about several issues, including the California Air Resources Board Low Carbon Fuel Standard, E15 legislation, and why RFA supports farm broadcasters.

Ethanol Report from NAFB Washington Watch

EIA: Ethanol Production, Stocks Down

Weekly ethanol production numbers, as well as stocks are down. The U.S. Energy Information Administration (EIA) reports ethanol production averaged 921,000 barrels per day (b/d), about 38.68 million gallons daily. That is down 9,000 b/d from the week before. The four-week average for ethanol production stood at 928,000 b/d for an annualized rate of 14.23 billion gallons. Stocks of ethanol were down 2.6 percent from a week earlier at 20.8 million barrels.
ethanolsupply24apr1

The Renewable Fuels Association added that ethanol production is accounting for a good amount of corn usage in the country.

Ethanol producers were using 13.965 million bushels of corn to produce ethanol and 102,786 metric tons of livestock feed, 91,635 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 5.42 million pounds of corn distillers oil daily.

Solenis’ Antibiotic-Free Fermentation Aids for Ethanol

Solenis-Fuel-Ethanol-Workshop1Specialty chemical company Solenis will soon introduce a new line of antibiotic-free fermentation aids and a new scale inhibitor for ethanol. This company news release says the debut happens during the 2015 International Fuel Ethanol Workshop & Expo (FEW) to be held June 1-4 at the Minneapolis Convention Center in Minneapolis, Minnesota.

On Tuesday, June 2 at 1:20 p.m. Allen Ziegler, global biorefining marketing director for Solenis, will provide an overview of the new fermentation aids on the Innovation Stage on the Expo floor at the FEW. In addition, Robert Yule, platform launch manager for Solenis, will deliver a presentation on the new scale inhibitor during the FEW Production and Operations seminars on Tuesday, June 2, 3:30-5:00 p.m. in room 200 DEFG.

Antibiotic-free Fermentation Aids: The Solenis™ family of fermentation aids provides better yeast propagation while simultaneously reducing bacterial growth without the use of antibiotics in both high pH and standard pH fermentation processes. The company’s offering of patented and patent-pending antibiotic-free fermentation aids can help fuel ethanol producers improve efficiency and address regulatory and consumer concerns about antibiotics in the food chain.

Scale Inhibitor to Improve Evaporator Efficiency: Solenis’ Polystabil™ AS4535 scale inhibitor is specifically designed to help fuel ethanol producers reduce scale, improve heat transfer and reduce downtime in their evaporators. This patent-pending blended product starts working at a dosage level below traditional polyacrylate chemistries and allows higher dosages, up to 20 ppm, while still meeting regulatory requirements ‒ making it significantly more effective than conventional technologies.

During FEW, Solenis will also talk about new cooling water treatments, FDA-approved corn oil extraction aids for both disk-stack and tricanter systems, and a proprietary control system that allows for around-the-clock surveillance and control of process and water treatment programs.