US Ethanol Getting Exported to More Markets

A few years ago, almost all of U.S. ethanol went to Brazil, Canada and the European Union. But this article from the National Corn Growers Association says new information from the U.S. Grains Council shows just how wide the market has grown.
Ethanol-Exports
Exports to the United Arab Emirates, the Philippines and India experienced the strongest growth in 2014. While the UAE is largely importing U.S. ethanol to blend with its gasoline that is later re-exported, and India is importing for industrial purpose, the Philippines has a blend mandate in place. Domestic production in the Philippines has been unable to meet its 10 percent blend mandate making imports necessary.

Currently, the United States has a 55 percent market share in the Philippines and the Council is hopeful there is room to capture more. To help nurture this market, the Council and its partners, Renewable Fuels Association, Growth Energy and USDA’s Foreign Agricultural Service, have planned a busy summer with missions heading to the Philippines and other growing markets like China, Indonesia, India and Japan.

Bipartisan Bill Expands RVP Ethanol Waiver for 10%+

donnellyA bipartisan bill that increases the Reid vapor pressure (RVP) wavier for ethanol blends above 10 percent has been introduced in the U.S. Senate. Sen. Joe Donnelly (D-IN) was joined by Sens. Chuck Grassley (R-IA) and Deb Fischer (R-NE). The legislation would allow for more retailers to sell E15 gasoline/ethanol blended fuel year-round.

Donnelly said, “Biofuels like ethanol are renewable domestic energy sources, create more economic opportunities, and give consumers more options at the gas pump. This legislation would expand the RVP waiver for ethanol blends, increasing the market for ethanol producers in Indiana and around the country and making more clean fuels available to consumers year-round. We should be pursuing an all-in approach toward American energy production that includes ethanol and other biofuels because it helps our economy and increases our national security by reducing our dependence on foreign oil. I am proud my colleagues Senator Grassley and Senator Fischer are joining me in this bipartisan effort to reduce the burden of regulations on ethanol producers and consumers.”

Grassley said, “Consumers appreciate having choices, whether it’s at the grocery store or the fuel pump. Those of us who live in biofuels-producing states understand the appeal of cleaner, domestic, renewable fuels. The EPA should be consistent in the way it treats different fuel blends as a matter of fairness and to give consumers more options for fueling their vehicles. The EPA has never acted on its authority to grant a Reid vapor pressure waiver for E15. This bill proposes a legislative fix to fill the void.”

Tom Buis, Growth Energy CEO, said, “We applaud this strong bipartisan effort to remove the largest regulatory hurdle standing between consumers and access to a cleaner, less expensive and higher performing fuel. Senators Donnelly, Grassley and Fischer recognize that higher ethanol blends such as E15 benefit our environment, our economy and our rural communities, and are working together to bring those benefits to every American and move our nation forward. We commend them for taking the lead on this important issue in Congress.”

ncga-logo-newThe National Corn Growers Association (NCGA) also welcomed the news:

“We applaud Senators Donnelly, Grassley, and Fischer for their bipartisan efforts to increase the market for ethanol producers and give consumers more choices at the pump,” said NCGA President Chip Bowling. “June 1 is rapidly approaching, and we should ensure consumers will continue to have access to energy that is clean, renewable, and American-grown. We urge Congress to pass this legislation.”

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.”

American Ethanol Finishes 5 Years with NASCAR

am-ethanol-carOver the weekend at Richmond International Raceway, American Ethanol and NASCAR officially celebrated five years and seven million miles of running on 15% ethanol blended Sunoco Green E15, unveiling a new paint scheme with E15 prominently located on the hood of Austin Dillon’s No. 3 Chevrolet SS.

Dillon, who has been advocating the benefits of ethanol for three years now, drove his first American Ethanol paint of the 2015 racing season in the Saturday Toyota Owners 400 race, which was delayed by rain until Sunday. While he finished 27th in the race, ethanol still came in first.

“This has been a tremendous partnership,” said Tom Buis, CEO of Growth Energy. “Since NASCAR switched to Sunoco Green E15 five years ago, we have seen a very a substantial change in the national dialogue regarding ethanol – when people see NASCAR rely on ethanol week after week in all three of its national racing series, they understand that it is a fuel that they can rely on as well.”

American Ethanol driver Austin Dillon, National Corn Growers Association president Chip Bowling, Growth Energy CEO Tom Buis, RCR Racing owner Richard Childress

American Ethanol driver Austin Dillon, National Corn Growers Association president Chip Bowling, Growth Energy CEO Tom Buis, RCR Racing owner Richard Childress

During a press conference on Saturday, National Corn Growers Association President Chip Bowling talked about what the American Ethanol partnership has meant for American farmers. “E15 American Ethanol turns our unrivaled ability to produce corn into a national asset. Consumer demand for ethanol is good for family farmers and fans appreciate that,” said Bowling. “We have grown the 12 largest corn crops in history in the last 12 years so ethanol demand is critical. It means farmers can pay their bills, reinvest in the broader economy and keep family operations like mine viable for future generations.”

Bowling added that according to a 2014 study, NASCAR fans are over 75 percent more likely than non-fans to support the use of ethanol blended with gasoline to fuel their own car.

E15 Bill Introduced in the House

A bipartisan bill was introduced in the U.S. House yesterday as a companion to the Fuel Choice and Deregulation Act of 2015 in the Senate.

rod-blumCongressman Rod Blum (R-IA), along with Congressman Ken Buck (R-CO), Congressman Collin Peterson (D-MN), and Congressman David Young (R-IA) are co-sponsoring the House legislation, which removes the burdensome restrictions placed on the ethanol marketplace by the Environmental Protection Agency (EPA), further encourages manufacturers and producers to develop new technologies, and equalizes the tax between liquid natural gas (LNG) and diesel fuel.

“It is time for the EPA to stop denying American consumers access to new fuels in the marketplace,” said Rep. Blum. “This bill from Senators Paul and Grassley reduces unnecessary red tape while promoting competition, innovation, and fairness in the energy marketplace, and I look forward to working with my colleagues in the House and the Senate to move this measure forward.”

The bill requires EPA to correct the disparity regarding Reid Vapor Pressure, which measures the evaporation rate of gasoline, in ethanol blends. E10 blends have a waiver allowing year-round sales throughout the country, but EPA has refused to grant E15 the same waiver meaning E15 can only be sold from June 1 to September 15 in the majority of the country. If the bill passes, more retailers would be expected to offer E15.

“Consumers should have year-round access to higher ethanol blends,” said National Corn Growers Association president Chip Bowling. “This is the single largest regulatory hurdle standing in the way. We urge both the House and the Senate to step up, remove this hurdle, and expand consumer choice.”

Corn Growers Urge EPA to Keep RFS Timeline

ncga-logo-newCorn growers are urging the Environmental Protection Agency (EPA) to keep its agreement on a court-enforced timeline for establishing the Renewable Volume Obligation numbers for 2014 and 2015 for the Renewable Fuel Standard (RFS).

“Congress created the Renewable Fuel Standard to help reduce our dependence on foreign oil and to provide cleaner domestic fuel choices for consumers and the EPA has finally provided additional clarity about their timeline for announcing the 2014 through 2016 renewable fuel requirements,” said National Corn Growers Association (NCGA) President Chip Bowling. “We have expressed our concerns about the continued delays to the EPA, and we will be taking them at their word that they will adhere to this new deadline.”

Under the consent decree and other commitments, the EPA will propose volume requirements by June 1 for 2015 and 2016 and will re-propose volume requirements for 2014 that reflect the volumes of renewable fuel that were actually used in 2014. By November 30, EPA will finalize volume requirements for 2014, 2015 and 2016, and resolve a pending waiver petition for 2014.

According to NCGA, if the RVO reduction took place as proposed by the EPA in November 2013, the price of corn was estimated to fall by as much as an additional $1.10. “With corn stocks high and prices low well into 2015’s planting season, NCGA and its growers will continue to track progress on these deadlines and hold EPA accountable,” said Bowling.

Happy April Fuels’ Day!

april-fuelsIn honor of April Fuels’ Day, National Corn Growers Association CEO Chris Novak and Renewable Fuels Association CEO Bob Dinneen penned the following letter to Congress about the dangers of America’s growing dependence on renewable fuels from the troubled Midwest region.

Dear Members of Congress:

In recent years, Americans have become increasingly reliant on renewable fuels produced in agricultural states in the Midwest.

Some argue that greater use of renewable fuels like ethanol is a good idea merely because it costs 60-80 cents less per gallon than regular gasoline, offers higher octane and better engine performance, has fewer toxic emissions, and creates hundreds of thousands of American jobs. Sure, but what about the national security implications?

The fact is, the Midwest is a virtual tinderbox of conflicting allegiances.

The region is deeply divided, with factions loyal to the Packers, Bears, Vikings, Lions and Colts frequently at odds with one another. (Some analysts have questioned whether the Vikings are too weak to pose a serious threat to their neighbors, but Teddy Bridgewater had decent numbers last year).

Any resolution to the argument about “Duck, Duck, Goose” has proved elusive, with intransigent Minnesotans continuing to insist upon “Duck, Duck, Gray Duck” – a stance that has isolated the regime against the rest of the country. Tragically, these disputes often divide members of the same family who have lived for many years in a neighboring state … pitting brother against brother, cousin against cousin, Swede against Swede, at many a family picnic. Even the individual states themselves are not unified, including the intractable Cardinals vs. Royals divide and decades old disputes in Wisconsin between the dominant “drinking fountain” faction and the smaller but fervent “bubbler” faction. Then there is the whole “hotdish” vs. “casserole” question.

What would happen if, for example, Minnesota were to invade northern Iowa, seizing key ethanol refineries along the border and demanding the Iowa legislature pass a resolution declaring “Duck, Duck Gray Duck” the official waterfowl game of the Hawkeye State? The nation might have to learn to do without cleaner, less expensive, less toxic, higher performance fuel. Continue reading

Ethanol Supporters Counter Funding Request

houseEthanol and agriculture industry groups sent their own letter to House Appropriations leadership in response to a group of lawmakers calling for the elimination of funding for blender pumps or corn ethanol export promotion.

The letter signed by the Renewable Fuels Association, American Coalition for Ethanol, National Farmers Union, National Corn Growers Association, and Growth Energy calls on the subcommittee to “vehemently oppose and reject any efforts to include such limiting language” in FY 2016 appropriations for USDA.

It is important to note at the outset that there already exists a prohibition on the US Department of Agriculture using grant funds for the installation of blender pumps, which was included in the recently passed Farm Bill. Now, in a blatant effort to shelter the oil and gas industry from any further competition from ethanol, Representatives Goodlatte, et al. are seeking to place limitations on the U.S. Department of Agriculture’s efforts to help promote the consumption of American made ethanol at home and abroad; something that agency has been successfully doing with other agriculture and livestock products for decades.

Reps. Bob Goodlatte (R-VA), Peter Welch (D-VT), and Jim Costa (R-CA), claim in their letter that the government has created an “artificial market” for ethanol that is “negatively impacting American consumers, livestock farmers, food producers, retailers, air and water quality, and the ability to feed our nation’s hungry.” The ag and ethanol groups responded that “corn prices today are below the prices witnessed in 2007 when the Renewable Fuel Standard was expanded and livestock feed costs are at their lowest levels in more than five years…Meanwhile, consumer food prices have advanced more slowly since passage of the RFS than in the 25 years prior to its enactment.”

Read the letter here.

Biofuels Leaders Defend RFS

Holding a press conference in advance of the American Petroleum Institute continuing its call to repeal the Renewable Fuel Standard (RFS), representatives of the ethanol and advanced biofuels industry and corn growers defended the law and the fuel.

mess-rfsGrowth Energy CEO Tom Buis said the oil industry is making the same old arguments about ethanol that are simply not true, but he thinks the industry received a good boost over the weekend “when six out of nine of the Republican presidential candidates that came to the Ag Summit expressed support for the RFS.”

National Corn Growers Association (NCGA) first vice president Rob Elliott of Illinois talked about how the facts dispel the perpetual myths about food versus fuel. “Corn prices are now below cost of production … so obviously food prices have not followed a similar path,” he said.

Adam Monroe, president of enzyme producer Novozymes, said if Washington gives in to pressure by the oil industry to weaken the RFS it will keep second generation biofuels from going forward. “It makes it tremendously difficult for us to bring in new investors and spend more money,” he said.

Renewable Fuels Association president Bob Dinneen says no matter what ethanol critics say, there is now real world data that shows no detrimental effects have occurred as a result of the RFS and he encouraged reporters to question API. “Ask them to explain the fact that the price of corn is lower than it was when the RFS was passed,” he said, noting also that food price inflation has been lower, the dead zone has gotten smaller, and hunger worldwide has fallen.

Conference Call with Renewable Fuel Industry Leaders

New USDA Report Shows Ethanol Increasing Efficiency

Patriot Renewable Fuels in Annawan, Illinois

Patriot Renewable Fuels in Annawan, Illinois

The amount of corn necessary to make a gallon of ethanol is less than previously believed according to a new U.S. Department of Agriculture report.

In today’s monthly World Agricultural Supply and Demand Report (WASDE), corn use for ethanol production was projected 50 million bushels lower based on the new Grain Crushings and Co-Products Production report recently released by the National Agricultural Statistics Service (NASS), citing “a higher rate of conversion than previously assumed” as the reasoning for the adjustment.

“What is most remarkable about this supply and demand report is the light it sheds on a topic of great concern to U.S. corn farmers – recognition of the growing efficiencies in the ethanol industry,” said National Corn Growers Association (NCGA) President Chip Bowling, a Maryland corn farmer. “For many years, we have strongly asserted that the ethanol industry continues to improve and those productivity gains should be taken into consideration. With the simple justification offered for the analysis, USDA made a great step forward in showing its growing appreciation for the advances made in ethanol production and, thus, the ever-increasing benefit it offers Americans.”

While USDA estimates for corn use in ethanol production were lowered by 50 million bushels, the overall drop was partially offset by higher than expected production over the winter months. The demand decline was more than offset by projected increases in demand for corn from the export and feed and residuals markets of 50 million bushels each.

Projected ending stocks were lowered by 50 million bushels in light of the other adjustments. Average farm price estimates were raised by five cents at the midpoint to $3.50 to $3.90 per bushel.