March Ethanol and DDGs Exports Hit 2 Year Highs

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U.S. exports of both ethanol and the co-product dried distillers grains (DDGS) were higher in March, according to the latest analysis from the Renewable Fuels Association.

March U.S. ethanol exports increased 15% to a 23-month high of 159.3 million gallons (mg), with 97% bound for just ten markets.

The largest share (30%) transferred to Canada, our top customer for the 36th consecutive month despite a 1% decrease from February. Denatured fuel ethanol accounted for 93% of the 47.6 mg crossing the border. Exports improved by 61% to India (21.5 mg) and doubled to the European Union (20.0 mg)—primarily shipped to the Netherlands. Other larger markets included the United Kingdom (19.0 mg, -10%), Singapore (13.5 mg, +124% to a record high), Colombia (12.0, -20%), and South Korea (7.5 mg, +99%). Brazil remained absent from our export market, continuing a 22-month run. Year-to-date ethanol exports totaled 448.3 mg, which is 27% more than last year at this time.

DDGs exports were up 7% to 1.06 million metric tons, which is the the largest volume since June 2022.

Shipments to Mexico scaled back 34% to 171,815 mt yet were robust enough to secure its position as our largest customer for the third straight month. Exports bolstered to other larger markets, including South Korea (up 8% to 142,829 mt), Turkey (quadrupled to 122,027 mt), Indonesia (up 29% to a 4-year high of 111,044 mt), Vietnam (up 39% to 90,807 mt), Colombia (doubled to a record 73,304 mt), and Canada (up 13% to 55,967 mt). The remaining 30% of U.S. DDGS exports were dispersed across 32 countries worldwide. Year-to-date DDGS exports totaled 2.94 million mt, 21% ahead of last year at this time.

Distillers Grains, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

US Ethanol Industry Seeks to Challenge EU SAF Regulation

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The Renewable Fuels Association and LanzaJet are among U.S. ethanol interests seeking to intervene in a legal challenge of the European Union’s ReFuelEU Aviation Regulation, which effectively bans the use of renewable, crop-based biofuels like corn ethanol as a feedstock for decarbonizing the aviation sector. LanzaJet operates the world’s first ethanol-to-jet biorefinery in Georgia. Also collaborating in the intervention are U.S. Grains Council and Growth Energy.

The application to intervene in the proceedings supports a challenge brought by ePURE, a trade association representing European ethanol producers, and Pannonia Bio, one of Europe’s largest ethanol producers. Their application seeks to annul the relevant provisions of the ReFuelEU Aviation Regulation, which was adopted by the EU in 2023 and is set to take effect in 2025. A similar challenge was brought against the FuelEU Maritime Regulation, and members of the U.S. ethanol industry are seeking to intervene there, as well.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, SAF

Ethanol Report on 40B SAF Tax Credit and Beyond

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The 40B tax credit guidance and modified GREET model released April 30 by U.S. Treasury lays the groundwork for U.S. ethanol producers and farmers to participate in the emerging market for sustainable aviation fuels (SAF).

But since 40B expires at the end of this year, all the attention will now turn to implementing the 45Z credit to start next year, and the Renewable Fuels Association is already working on the next steps.

In this edition of the Ethanol Report podcast we get some of the details from US Treasury Secretary Janet Yellen and USDA Secretary Tom Vilsack, RFA Senior VP, Government & Public Affairs, Troy Bredenkamp, and Mitchell Hora, Continuum Ag.

Ethanol Report 5-2-24 22:11

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA, SAF

Nebraska Kicks Off Renewable Fuels Month

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Biofuel supporters join Gov. Pillen for proclamation

Nebraska Gov. Jim Pillen signed a proclamation Wednesday to officially kick off May as Renewable Fuels Month in the state.

The proclamation was made during a ceremony at the State Capitol underscoring the pivotal role that renewable fuels play in the state’s economy, environment and energy security. The governor was joined by representatives from Renewable Fuels Nebraska, the Nebraska Soybean, Corn and Ethanol Boards alongside their respective grower associations.

“Renewable fuels like ethanol, biodiesel, renewable diesel and sustainable aviation fuel represent the best of our state,” said Tony Leiding, President of Trenton Agri Products and Renewable Fuels Nebraska. “Nebraskans are finding new and exciting ways to meet demand while reducing the impact on the environment with products grown right here at home.”

According to the Nebraska Ethanol Board, the month of May marks the beginning of the summer driving season, making it an ideal time for Renewable Fuels Month to highlight the importance of ethanol, renewable diesel, and biodiesel to the state.

Nebraska is the second-largest producer of ethanol in the country, and legislation passed by the 2024 Nebraska Legislature provides a tax credit for sustainable aviation fuel (SAF) produced in Nebraska. Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel.

Biodiesel, biofuels, Ethanol, Ethanol News

Corn Growers Disappointed in GREET Model Update

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National Corn Growers Association (NCGA) farmer leaders are expressing concern about the final guidance on eligibility for the Sustainable Aviation Fuel 40B tax credits released by the Biden administration this week.

Specifically, NCGA is concerned with updates made to the Department of Energy’s GREET model, which requires farmers to bundle the use of no-till practices, enhanced efficiency fertilizers and cover crops for their grain to meet the standards now required to qualify for the tax credit.

“We are deeply disappointed that this updated model requires farmers to implement environmental practices that are not practical for all acres of the large and varied geographic region in which corn is grown,” said Minnesota farmer and NCGA President Harold Wolle. “This requirement in GREET will significantly hinder the chances corn growers have in accessing the sustainable aviation fuel market, even as higher blends of corn ethanol offer great promise in the country’s fight against greenhouse gas emissions and climate change.”

Wolle said NCGA will increase their advocacy efforts on the next phase taking effect in 2025, the 45Z tax credit, to improve the changes Treasury made to the GREET model.

corn, Ethanol, Ethanol News, NCGA, SAF

Farmer Consultant Digs Into SAF Tax Credit Guidance

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Mitchell Hora, Continuum Ag, on panel at 2024 National Ethanol Conference

Iowa farmer and consultant Mitchell Hora, Continuum Ag, spent some time Wednesday morning breaking down the 40B sustainable aviation fuel (SAF) tax credit guidance released this week for farmers hoping to be eligible.

To qualify under the guidance, corn farmers have to do cover crop, no-till, and enhanced efficiency fertilizer, while soybean farmers are required to cover crop and no-till. However, Hora says it’s unlikely anyone will qualify this year under 40B. “The crop you grew last year probably didn’t qualify for all these check the box items and you definitely didn’t have a written plan, which is what’s required,” said Hora. “The crop we’re going to grow this year…nobody is really going to make any tax credits.”

The good news is that this lays the groundwork for 45Z. “There’s a very high chance that they actually switch away from this check-the-box program to use the actual GREET score, which is what we want,” said Hora. “It does lay out very clearly what qualifies and how to verify and prepare ourselves.”

Hora also noted that the revised GREET model in the guidance included a major surprise when it came to indirect land use change (ILUC). “We’ve been thinking that the indirect land use change would go up…but they did the opposite. It actually went down a little bit!….Massive win for American farmers,” said Hora.

There were over 400 farmers and other stakeholders on Hora’s webinar which ran for an hour and still was not able to address all the questions. Continuum Ag has its TopSoil® Summit coming up June 3 in Riverside, Iowa which will be focused on Carbon Intensity to help prepare for the SAF tax credits. Continuum recently introduced CI Certification as a product for farmers to earn premiums for producing lower carbon intensity grain while ensuring secure data control.

Listen to Hora’s summary of the 40B SAF tax credit guidance:
Mitchell Hora, Continuum Ag 12:53

Audio, aviation biofuels, corn, Ethanol, Ethanol News

Clean Fuels and Soy Growers React to SAF Guidance

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Clean Fuels Alliance America welcomed updates to the GREET model released this week for calculating 2023-2024 sustainable aviation fuel (SAF) blender tax incentives (§40B).

For the first time, these updates recognize the carbon benefits of some of the climate smart agriculture practices that U.S. farmers are already utilizing. However, Clean Fuels urges USDA and Treasury to further update the GREET model to include additional climate smart agriculture practices specific to oilseed crops and quickly finalize rules for the 2025-2027 tax incentives (§45Z Clean Fuel Production Credit), which will support U.S. biodiesel, renewable diesel, and SAF producers.

The American Soybean Association is concerned that the strict guidance could prove to be prohibitive to Northern soy states since the required no till and cover cropping are feasible only for soybean farmers in certain parts of the country.

ASA president Josh Gackle grows beans in Kulm, North Dakota. “For growers like me here in North Dakota, short growing seasons and unpredictable fall weather make the cover crop requirement alone next to impossible. Growers in the Northern Plains do so when possible,” said Gackle. “However, employing both no till and cover cropping is contrary to what Mother Nature will allow, no matter what the guidance specifies.”

ASA, aviation biofuels, Biodiesel, biofuels, Clean Fuels Alliance, SAF, Soybeans

Ethanol Industry Reacts to SAF Guidance

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Now that the 40B sustainable aviation fuel (SAF) tax credit guidance and modified GREET model has been released, the ethanol industry may have scored a ticket to fly but there’s still a few mechanical problems to sort out before take off.

The new 40B GREET model will recognize GHG reductions from carbon capture and sequestration (CCS), renewable natural gas, and renewable power used to produce ethanol for qualifying SAF and include a “safe harbor” pilot program for corn ethanol produced with bundled climate-smart agriculture (CSA) practices.

Renewable Fuels Association President and CEO Geoff Cooper says they view this as a starting point. “We are encouraged that, for the first time ever, this carbon scoring framework will recognize and credit certain climate-smart agricultural practices. We’re also pleased to see the integration of other carbon reduction strategies—like renewable process energy and carbon capture and sequestration—into the model. However, RFA believes less prescription on ag practices, more flexibility, and additional low-carbon technologies and practices should be added to the modeling framework to better reflect the innovation occurring throughout the supply chain.”

American Coalition for Ethanol (ACE) CEO Brian Jennings says while the announcement a step in the right direction, it’s not likely to make a difference this year. “With the 2024 planting season underway and the expiration of the 40B credit on December 31, 2024, Treasury’s SAF guidance speaks more to the Administration codifying the important role CSA practices play in decarbonizing liquid fuels than the amount of ethanol-to-jet that will qualify for the 40B credit,” said Jennings. “Ultimately, we need to enable farmers and ethanol companies to recoup value from these tax credits for their investments to reduce GHG emissions.”

Jennings says ACE is leading USDA-funded Regional Conservation Partnership Program (RCPP) projects that will generate scientifically significant datasets of the GHG reduction benefits of CSA practices used to produce ethanol in various regions across the country. “We look forward to continued engagement with Treasury, USDA and DoE with respect to how the GREET model will apply to 45Z, which will not require bundling of CSA practices,” said Jennings.

Learn more in this interview:
ACE CEO Brian Jennings on SAF tax credit guidance 15:40

ACE, Audio, aviation biofuels, Carbon, corn, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF

Treasury Releases Guidance for SAF Credit

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Late Tuesday afternoon the U.S. Department of the Treasury and Internal Revenue Service (IRS) finally released guidance on the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA).

The guidance released today will “catalyze innovation in the aviation industry and incentivize the production of cleaner and more sustainable aviation fuels,” said U.S. Treasury Secretary Janet Yellen during a House Ways and Means Committee hearing.

US Treasury Secretary Janet Yellen 1:04

Tuesday’s announcement includes the new 40B SAF-GREET 2024 model that provides another methodology for SAF producers to determine the lifecycle GHG emissions rates of their production for the purposes of the SAF Credit. The modified GREET version incorporates new data, including updated modeling of key feedstocks and processes used in aviation fuel and indirect emissions, as well as integrates key greenhouse gas emission reduction strategies such as carbon capture and storage, renewable natural gas, and renewable electricity.

Importantly, the notice also incorporates a USDA pilot program to encourage the use of certain Climate Smart Agriculture (CSA) practices for SAF feedstocks to lower overall GHG emissions and increase adoption of farming practices associated with environmental benefits such as improved water quality and soil health.

For corn ethanol-to-jet, the pilot provides a greenhouse gas reduction credit if a “bundle” of certain CSA practices (no-till, cover crop, and enhanced efficiency fertilizer) are used. It similarly would allow a greenhouse gas reduction credit for soybean-to-jet if the soybean feedstock is produced using a “bundle” of applicable CSA practices (no-till and cover crop). This is a pilot program specific to the 40B credit, which is in effect for 2023 and 2024.

To credit CSA practices in the Clean Fuel Production Credit (45Z), which becomes available in 2025, the agencies will do further work on modeling, data, and assumptions, as well as verification. A new 45Z-GREET will be developed for use with the 45Z tax credit.

Ethanol stakeholders are pleased with the announcement, but say it is only a first step in resolving the path forward. “Today’s guidance and modified GREET model help position ethanol-based SAF for takeoff, but more work is needed to fully clear the runway and get this opportunity off the ground,” said Renewable Fuels Association President and CEO Geoff Cooper.

Audio, aviation biofuels, biofuels, biojet fuel, corn, Ethanol, Ethanol News, SAF

Trade Groups Urge EPA to Meet 2026 RFS Volumes Deadline

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Clean Fuels Alliance America and other trade associations representing feedstock providers, advanced biofuel producers, and low-carbon fuel customers are urging the Environmental Protection Agency to propose and finalize 2026 Renewable Fuel Standard volumes by this November’s statutory deadline.

In a letter to EPA Administrator Michael Regan, the nine organizations highlighted the dramatic drop in the value of RFS compliance credits (or RINs) in response to EPA’s unreasonably low 2023 -2025 volumes EPA set last year. The situation prompted several production facilities to close and now threatens investments in feedstock processing capacity as well as production of sustainable aviation fuel, according to the association letter.

“Each of our industries are committed to reducing greenhouse gas emissions, and we recognize that sustainable biofuels offer some of the most substantial immediate benefits to deliver carbon reductions. The EPA should utilize the RFS to improve energy security, bolster domestic industry and manufacturing, and maintain America’s leadership in developing and using sustainable, clean transportation technologies,” the associations write. “While our industries will continue to make investments in producing, distributing, and using low-carbon fuels, EPA can and should send a strong signal to the market through robust RVOs.”

“Transportation industries are looking for low-carbon solutions – particularly for heavy-duty engines – and clean fuels producers and feedstock suppliers are coordinating to deliver those solutions,” added Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “We are united in asking EPA to use the Renewable Fuel Standard to drive growth in the market, achieve significant near-term greenhouse gas emission reductions, and support the investments we’ve made. EPA must act in a timely manner on the 2026 RFS volumes to keep the program on track.”

Joining Clean Fuels in sending the letter are American Short Line and Regional Railroad Association, American Soybean Association, American Trucking Associations, Association of American Railroads, National Energy & Fuels Institute, National Oilseed Processors Association, North American Renderers Association, and U.S. Canola Association.

Read more from Clean Fuels Alliance America

aviation biofuels, Biodiesel, biofuels, Clean Fuels Alliance, EPA, Soybeans