Ethanol Industry Takes Clean Energy Mission to India

A team from the U.S. including the U.S. Department of Agriculture (USDA), Growth Energy, U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA) recently returned from a clean energy mission to India. Led by USDA Undersecretary for Farm and Foreign Agricultural Services Micheal Scuse, the group met to discuss opportunities for developing clean energy solutions, technologies and policies. An additional goal of the mission was to strengthen the level of cooperation and coordination between the ethanol industries of the two countries.

logosDuring a series of meetings that involved ethanol producers, oil companies and government officials, the U.S. participant group of seven received an in-depth look at the local industry’s situation and outlook. There were extensive discussions on India’s economy, political environment, energy sector, and the role of government policy as a driver of the ethanol industry’s growth.

“Macroeconomic factors like population growth, continuing urbanization and increases in disposable income mean India is poised to use more gasoline and diesel fuels,” said USGC Past Chairman Ron Gray, who was part of the group representing the U.S. industry. “Given the negative effect that petroleum-based gasoline has on air quality, we feel that the expanded use of ethanol as an oxygenate can help India reduce smog and carbon emissions in this rapidly growing developing country, particularly in its cities.”

Ed Hubbard, general counsel for RFA said of the trip, “America’s commitment to using ethanol in our fuel has made it possible for our nation’s busiest cities to dramatically reduce levels of smog and other harmful tail-pipe emissions. By sharing our experiences with our friends here in India, we believe we can help them significantly improve the country’s air quality.”

In 2014, India imported $86 million of industrial ethanol mostly from the U.S. and Brazil and USGC expects imports to rise potentially researching $150-200 million in 2015. Even accounting for this level of growth, the U.S. ethanol industry believes there is still room for growth, especially in the transportation market. According to a press release sent out from the U.S. delegation, this view was echoed by India’s sugar and ethanol sector during last week’s meetings, with the country seeking ways to increase their blend rates from current low levels as a means to improving air quality while supporting India’s sugar producers.

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Grains Council Chairman at #ACE15

ace15-tiemannNebraska farmer Alan Tiemann was recently elected chairman of the U.S. Grains Council and he is excited about the work they are doing to expand exports of ethanol and the co-product Distiller’s dried grains with solubles (DDGS) used for livestock feed.

“For this coming year, my theme is ‘Excellence in Exports,'” said Tiemann during an interview after his address to the American Coalition for Ethanol conference this week in Omaha. “That’s what we’re going to focus on, excellence in exports – in ethanol, in distillers grains, in all the co-products, in sorghum and barley.”

During his address at ACE, Tiemann talked about the great success in exports of DDGS around the world and the potential for increasing ethanol exports to markets like Asia. “We look at Beijing and the smog issues they have there, the opportunities for a clean burning fuel like ethanol should be a no-brainer,” he said. Right now the largest export markets for U.S. ethanol are Canada and Brazil.

Listen to my interview with Tiemann here: Interview with Alan Tiemann, US Grains Council chairman

Listen to Tiemann’s full presentation at ACE here: USGC chair Alan Tiemann address to ACE

2015 ACE Annual Meeting Photos

Grains Council Presents Ethanol Export Strategy

During this week’s 55th Annual Board of Delegates Meeting in Montreal, Canada, the U.S. Grains Council (USGC) unveiled an ethanol export promotion strategy. The program was developed with input from the ethanol industry including U.S. Department of Agriculture’s Foreign Agricultural Service (FAS), Growth Energy and the Renewable Fuels Association (RFA).

U.S. Grains Council Chairman Ron Gray.

U.S. Grains Council Chairman Ron Gray.

“In 2014, the Council and its partners completed in-depth market assessments in Southeast Asia, Peru, Panama, Japan and Korea that produced valuable information used develop this strategy,” said USGC Chairman Ron Gray. “Our plans in these markets continue to develop, and we are carrying on market assessment work in places like Canada and the European Union. However, we are also moving forward aggressively with market development and policy-focused work in countries like the Philippines that have the potential to increase demand for U.S. ethanol in the near term.”

Ethanol was the subject of a general session panel at the meeting, including input from Growth Energy CEO Tom Buis, RFA President and CEO Bob Dinneen and Green Plains Renewable Energy Executive Vice President for Ethanol Marketing Steve Bleyl, moderated by USGC’s Chief Economist Mike Dwyer, a leading global biofuels analyst.

Ethanol export plans were explored in more depth during the Ethanol Advisory Team meeting, comprised of members from throughout the value chain, and a breakout session focused specifically on USGC’s ongoing ethanol-focused programs.

“U.S. ethanol exports are becoming increasingly vital to our stakeholders’ bottom line, which makes finding new markets for U.S. ethanol is a priority for the Council,” Gray added. “This plan shows our and our partners’ commitments to making that happen.”

Among other activities, two trade teams in the United States and three missions traveling overseas are scheduled to focus on ethanol in the remainder of 2015.

Ethanol Trade Missions to Expand Markets

Representatives of the U.S. Grains Council (USGC), Renewable Fuels Association (RFA), and Growth Energy were in Tokyo this week for an industry market assessment of the potential to export U.S. ethanol to Japan.

growth-exports“The United States exported 900 million gallons of ethanol in 2014, supporting both U.S. farmers and the ethanol industry. We know that, going forward, ethanol exports have the potential to grow and become equally beneficial for our customers overseas,” said USGC president and CEO Tom Sleight. “USGC, Growth and RFA are committed to launching initiatives in 2015 and 2016 to build demand for U.S. ethanol and address barriers to ongoing imports.”

Over the next two years, the government of Japan will be undertaking a full review of its national energy policies, including biofuels, potentially opening up opportunities for additional ethanol exports there.

“The team came away with a much greater understanding of the current Japanese requirements and market conditions pertaining to ethanol and began the implementation of a strategy to help ensure that U.S. ethanol receives fair market access under the future energy policy that will be adopted when the current policy expires in 2017,” said Jim Miller, chief economist and vice president of Growth Energy.

“The team will continue examining the requirements of the Japanese sustainability standards, looking for ways to overcome infrastructure concerns, and compiling data responding to some of the misinformation government officials still hold regarding renewable fuels,” added RFA’s director of regulatory affairs, Kelly Davis.

Last week, the organizations were part of a mission with USDA’s Foreign Agriculture Service in Mexico to explore potential in that market. One mission member, Greg Krissek, CEO of Kansas Corn, reflected on the trip in this video from the USGC.

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.
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.

USGC Helped Move DDGS Exports in 2014

usgc-winter-grayThe U.S. Grains Council (USGC) held its winter meeting last week in Costa Rica where more than 250 delegates met to take a look back at last year and assess export opportunities.

Chairman Ron Gray says one of big issues of 2014 was with the ethanol co-product distillers grains (DDGS) and China. “At the end of the year, our exports were one of the highest years for DDGS on record,” said Gray. “The Grains Council was instrumental in mitigating that process so that trade can continue.”

Gray, who is a farmer from Illinois, believes it’s important for producers to be involved in trade policy. “I think combines would be easier to fix than trade policy,” he said. “We try to address the next problem so we can keep trade moving.”

Gray says U.S. sorghum picked up some exports to China last year to pick up the slack caused by the biotech trait issue with corn, which allowed them to remain active in the market, but ultimately it’s the growing demand for corn that is benefiting farmers back home.

USGC Lists Top 10 Markets for US Ethanol

The U.S. Grains Council (USGC) has compiled its top 10 list of potential U.S. ethanol markets for the upcoming 2014/2015 market year, starting September 1.


While Brazil and Canada remain the top two, the Council is assessing Japan and Korea, Latin America and Southeast Asia as potential markets for U.S. ethanol exports. In the number three spot, USGC believes Japan has the potential to import 459 million gallons of U.S. ethanol in the year ahead, which would account for 11 percent of global demand for U.S. ethanol. Seventh placed Mexico has the potential to import 236 million gallons of U.S. ethanol and the Philippines at number nine could import 90 million gallons. Those three markets combined could to represent almost 20 percent of global demand for U.S. ethanol.

Rounding out the top ten, USGC puts the United Kingdom in fourth place with nearly 305 million gallons, India and Nigeria ahead of Mexico in 5th and 6th place with 250 and 240 million gallons respectively. Australia is ranked in 8th place with 220 million gallons and the Netherlands completes the top 10 with just over 86 million.

Colombia has Potential as Distillers Grains Market

COLOMBIAExports of U.S.corn to Colombia have soared this year, thanks to bigger crops, lower prices, and a favorable free trade agreement. The U.S. Grains Council (USGC) also sees great potential for increasing exports of the ethanol co-product and livestock feed distillers grains (DDGS).

“We currently see about 90,000 metric tons of distillers grains moving into Colombia,” says USGC Director of Global Strategies Kurt Shultz. “We believe the market has the potential to easily exceed 700,000 tons, so there’s a lot of upward opportunity in Colombia for increased exports of distillers grains.”

Under the free trade agreement, there are no duties on distillers grains, so the Grains Council is actively working to bring technical knowledge on how to use the product to the region. “We had some feeding trials last year with the dairy industry which should good acceptance in the dairy sector,” said Shultz. Now they are looking at doing trials in swine and poultry as well.

This will likely be a topic of discussion at the 2014 Export Exchange coming up October 20-22 in Seattle. The event, co-sponsored by USGC and the Renewable Fuels Association, brings together buyers and sellers of distillers grains in an effort to expand established export markets and develop new markets. Discounted early registration for the event is available now through September 22.

Grains Council Working on Ethanol Exports

usgrainscouncil1The U.S. Grains Council (USGC) is working on promoting exports of U.S. ethanol through a partnership between USDA’s Foreign Agriculture Service, Growth Energy and the Renewable Fuels Association (RFA).

“We’ve been working since late March, early April to determine which markets we’re going to do market assessments in and then next year we’ll shift into market development activities,” said Ashley Kongs, USGC manager of ethanol export program. The Grains Council is planning three regional market assessment programs this year, going to Japan and Korea in September, Latin America in November, and southeast Asia in early December.

Earlier this year, USGC participated in a trade mission to China with USDA Undersecretary Michael Scuse where they were able to discuss the possibility of ethanol exports to that country. “They visited with a Chinese ethanol plant and they had meetings with the National Energy Administration in China,” said Kongs. “Currently ethanol can only be sold in six designated markets in China for blending with fuel, but the group had discussions about the possibility of expanding ethanol use nationwide.” Kongs says while there are challenges in the Chinese market, the Grains Council sees great potential for the future to open the door for U.S. ethanol exports.

USGC continues to build on its success in promoting exports of the ethanol co-product distillers grains and will be again this year joining RFA in hosting the Export Exchange, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products held every two years. Early registration for the event is open until July 31 and USGC and RFA members are eligible for discounted pricing.

Export Exchange 2014 Registration Open

2014-export-exchangeRegistration is now open for Export Exchange 2014™, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products.

Approximately 300 U.S. suppliers and agribusiness representatives and more than 180 international buyers are expected to attend Export Exchange 2014. The conference is being held Oct. 20-22 at the Sheraton Seattle Hotel and is co-sponsored by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA).

“Export Exchange brings together a group of U.S. suppliers and international buyers in a unique event focused on the expansion of established export markets and the development of new markets for U.S. coarse grains, distillers dried grains with solubles (DDGS) and other ethanol co-products,” said USGC Chairman Julius Schaaf.

“Over the past decade, the U.S. ethanol industry has emerged as a major producer of high quality animal feeds like DDGS and corn gluten feed,” said Bob Dinneen, RFA president and CEO. “Export Exchange is the premier forum for connecting the producers and marketers of those co-products with customers around the world.”

Export Exchange is held every two years. The 2012 event broke records in attendance and attracted buying teams from 33 countries, including all of the top U.S. international coarse grains and ethanol co-products markets. Attendance at this year’s event is expected to set a new record, creating more opportunities for U.S. merchandisers to connect with buyers and build business.

Early registration discounts end July 31. USGC and RFA members are eligible for discounted pricing and should identify themselves as such at the time of registration.