Ethanol and DDG Exports Up in August

Cindy Zimmerman

August was a better month for exports of U.S. ethanol and distillers grains, according to the latest trade monitor report by Renewable Fuels Association (RFA) senior analyst Ann Lewis.

U.S. ethanol exports in August saw substantial improvement from the prior month’s slump, expanding 56% to 80.48 million gallons (mg). Canada was the top destination for the fifth straight month with imports of 33.9 mg, the largest volume since March (representing 42% of the August U.S. ethanol export market). Given that former key destinations Brazil, China, and India were again nearly absent from the market, the scope of U.S. ethanol exports extended to a broader range of customers than has been the norm. Larger markets included South Korea (9.9 mg, up 86%), the United Kingdom (up fivefold to a two-year high of 6.7 mg), Peru (6.2 mg, up from zero), Nigeria (5.0 mg, up from zero), the Netherlands (4.9 mg, up 22%), and Mexico (4.0 mg, up 83%). Shipments over the first eight months of the year were 796.3 mg, down 10% from the same period in 2020.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—spiked 17% to 1.24 million metric tons (mt). This marks the highest volume of U.S. DDGS exports since Aug. 2015, with much of the growth occurring outside of our largest markets. Exports to Mexico, our top customer for the last eleven months, declined by 18% to a four-month low of 203,666 mt (representing just 16% of all U.S. DDGS shipments in August). DDGS sales to Vietnam jumped 29% to 194,667 mt, its second-largest monthly purchase to date. Exports to Turkey slowed after a large bump in July, down 43% to 86,772 mt. Substantial export volumes also landed in Canada (86,238 mt, up 23% to the largest volume in over a decade), South Korea (79,859 mt, down 10%), Indonesia (64,853 mt, down 3%), China (56,573 mt, up 61% to the largest volume in more than four years), Thailand (55,554 mt, up 153%), and New Zealand (50,000 mt, up from zero). Total DDGS exports through August were 7.73 million mt, which is 10% ahead of last year at this time.

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

REG Joins Iowa State University on Hydrotreater Pilot Plant

Cindy Zimmerman

Renewable Energy Group, Inc. (REG) joined Iowa State University (ISU) this week for a ribbon cutting ceremony at the BioCentury Research Farm (BCRF) to celebrate the start of a new hydrotreater pilot plant.

The hydrotreater pilot plant, the result of a three-year collaboration between REG and the ISU Bioeconomy Institute, will work on how various biomass feedstocks can play a role in the production of renewable fuels with a specific focus on renewable diesel. The pilot plant is a multi-reactor state-of-the-art research and development unit designed by REG’s engineering teams to accelerate the development of new feedstocks and processes. The system is fully automated and configured to run safely and reliably for weeks at a time.

“This project is a result of our longstanding partnership with Iowa State University, and our joint interest in continuing to position the state of Iowa as a hub for innovation and excellence,” said REG President & CEO, Cynthia (CJ) Warner. “As one of the first biodiesel and renewable diesel producers in the nation, innovating is in our DNA, and having the capability to develop additional feedstock options for our industry will help meet the growing demand for cleaner fuels.”

Renewable diesel is a low-carbon cleaner fuel that, through a catalytic process utilizing heat, pressure and hydrogen, known as hydrotreating, can convert feedstocks into a hydrocarbon fuel that is chemically similar to traditional diesel. Research at this new hydrotreater pilot plant will support REG’s Geismar, Louisiana renewable diesel plant by helping to evaluate new low-carbon feedstocks and optimize production of renewable diesel and sustainable aviation fuel (SAF).

Biodiesel, renewable diesel

Sen. Thune Criticizes Democrat Agenda

Cindy Zimmerman

Sen. John Thune (R-SD) spoke out on the Senate floor this week about Democrat policies that he says are harmful to farmers and ranchers.

“For starters, I’m worried that Democrats’ bill could mean the end of some family farms thanks to the bill’s expansion of the death tax,” said Thune. “Death should not be a taxable event.”

Sen. Thune also criticized Democrats for focusing on electric vehicles at the expense of biofuels when it comes to climate policy and manipulating farm policy.

“Democrats have picked their preferred winner in the clean energy stakes – electric vehicles,” Thune said. “Biofuels take a back seat in Democrats’ legislation, despite the essential role they have played in making American energy cleaner – and despite the significance of biofuels to the rural economy.”

Sen. John Thune (R-SD) floor speech (7:50)

Audio, biofuels, Ethanol, Ethanol News, Government

RFA Redesigns Website

Cindy Zimmerman

The Renewable Fuels Association debuted a redesigned website last week during the association’s annual membership meeting taking place this week in Des Moines.

“As we celebrate our 40th anniversary this year, we want to ensure a digital presence that symbolizes our organization’s experience and leadership in a way that is clear and compelling,” said RFA President and CEO Geoff Cooper. “This website does just that in a fresh look that is far more responsive than our prior design, helping users find the information they need, more quickly.”

Built on a custom platform for optimum speed, the newly streamlined website provides regularly updated market statistics and news of importance to the ethanol industry, as well as RFA studies, publications and infographics, and connections to RFA’s increasingly popular social media accounts. The website also features a design that allows its display to be easily and clearly viewed on mobile devices.

In addition to an improved search function and other ways to quickly sort information, the new website uses the Tableau platform to help users publicly share and explore data visualizations online. This functionality will be built out more in the months ahead and updated as needed.

EthanolRFA.org

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Remains Top Concern for NCGA

Cindy Zimmerman

Chris Edgington of St. Ansgar, Iowa, became president of the Corn Board of the National Corn Growers Association as of October 1 and during a media Zoom call Monday he said ethanol remains a top concern for the organization as the industry continues to await the administration’s proposal for blending obligations under the Renewable Fuel Standard (RFS).

“The RVO numbers should be 15 billion gallons, that’s what it says they should be,” said Edgington. “We see no reason it should not be 15 billion gallons.” Edgington says anything less than that will erode the trust farmers had that President Biden would keep his campaign promise to maintain the RFS.

Regarding the court decision against E15, Edgington said there is no easy answer. “Growth Energy is applying to the Supreme Court so that’s the last avenue that I understand on the legal front,” he said. “But we do have champions in Congress that are working on legislation that will allow E15 to be sold year round,” such as the Next Generation Fuels Act.

As NCGA President, Edgington also serves as president of the National Corn Growers Association Foundation, as the association’s delegate to the U.S. Grains Council, and also as liaison to the Agriculture Markets Advisory Council and the Renewable Fuels Association.

NCGA president Chris Edgington, Iowa (18:18)

Audio, corn, Ethanol, Ethanol News, NCGA

NBB Hits the Airways with NPR Sponsorship

Cindy Zimmerman

The National Biodiesel Board (NBB) has commenced a three-week sponsorship of National Public Radio (NPR) as part of a comprehensive educational campaign aimed at decision-makers and the public. The 15-second radio spot will air on some of NPR’s most listened to programs including Morning Edition, All Things Considered and 1A.

“We’re excited to share the biodiesel industry’s ‘Better. Cleaner. Now!’ message with a national audience through this NPR sponsorship,” said Liz McCune, NBB director of communications. “Thanks to the generous support of the United Soybean Board, Kentucky Soybean Board, Nebraska Soybean Board and Wisconsin Soybean Marketing Board, we are able to educate a broad and diverse audience about how biodiesel and renewable diesel are reducing carbon emissions now, from coast to coast.”

NBB is sponsoring a total of 46 spots on nine programs for the next three weeks, with estimated impressions of more than 30 million.

Biodiesel, NBB

Ethanol Blended Gas Lowers Carbon Even More

Cindy Zimmerman

New research was released this week showing that gasoline blended with ethanol lowers carbon intensity (CI) even more than what is currently believed.

The research, conducted by Transport Energy Strategies (TES) and THiggins Energy Consulting, found that blending ethanol into gasoline enables a reduction of aromatics in the fuel, and since aromatics have a high CI, their reduction further decreases the GHG impact of 10 percent ethanol blends (E10).

“For years, the ethanol industry has touted the value of displacing aromatics with ethanol from an air pollution and public health standpoint, but no one has, to our team’s knowledge, ever considered what displacement might mean for carbon intensity and for reducing GHG emissions,” said Tammy Klein, founder and CEO of Transport Energy Strategies and a member of the study team. “Our findings break new ground.”

Based on the findings by TES, Urban Air Initiative calculates that when credited for lowering aromatics, ethanol’s greenhouse gas (GHG) emissions are 56% lower than gasoline, compared to the currently modeled 43% reduction.

“This is just one more example of how ethanol helps decarbonize liquid transportation fuels. It’s a readily available, clean, plant based solution that’s already made more of a difference than it has been credited for. The findings by TES demonstrate the need to update the current science and recognize ethanol’s ability to have an even larger carbon benefit with increased availability of higher blends,” said Urban Air Initiative President Dave VanderGriend.

American Coalition for Ethanol (ACE) CEO Brian Jennings says the research aligns with ACE’s multi-year engagement with administration and legislative officials, as well as scientists at the Argonne National Laboratory in regards to properly valuing corn ethanol’s low carbon and high octane attributes. “We hope future lifecycle models will credit ethanol for the role it plays in displacing aromatics in gasoline.”

ACE, corn, Ethanol, Ethanol News, Urban Air Initiative

Renewable Energy Group Closes Houston Biodiesel Plant

Cindy Zimmerman

Renewable Energy Group (REG) has announced the closing of its 35 million gallon per year biodiesel production facility located near Houston, Texas. The company acquired and commissioned the plant in 2008 and has been operating it since.

“We have made the decision not to renew the lease for our REG Houston biorefinery, which would have imposed an uncompetitive fixed cost on the plant,” said REG President & CEO Cynthia ‘CJ’ Warner. “The plant has run very well but has always been relatively challenged due to its leasing agreement coupled with a lack of REG’s hallmark multi-feedstock processing capability.”

The company is currently working with plant employees on relocation opportunities within the production network. The company will completely shut down the Houston plant in November 2021.

“It is never an easy decision to shut down a plant. We greatly appreciate the team at REG Houston for their dedication to safety and operational excellence,” said Warner. “Within our larger system, we remain focused on executing our growth strategy and we will continue to work with our existing customers and vendors to provide clean fuel solutions that are delivering meaningful carbon reduction today.”

Biodiesel, REG

RFA Celebrates 40 Years of Industry Leadership

Cindy Zimmerman

RFA CEO Geoff Cooper and Chairperson Jeanne McCaherty

The Renewable Fuels Association celebrated 40 years of industry leadership this week during its annual membership meeting in Des Moines. Jeanne McCaherty, CEO of Guardian Energy Management, was re-elected as chairperson. She became the first female chairperson elected in the history of RFA last year, and first among any national ethanol trade association.

“Without question, 2021 has been a year of change for the ethanol industry, and through it all the Renewable Fuels Association has continued to lead the industry forward, just as the organization has done for 40 years,” McCaherty said. “Our recent carbon neutrality commitment is a poignant example of RFA’s reputation as a thought leader and an agent of change, and I look forward to working with RFA’s members and staff this next year as we embrace change and zero in on new opportunities for ethanol.”

RFA’s board also re-elected Badger State Ethanol CEO Erik Huschitt as Vice Chairman, and Absolute Energy’s Rick Schwarck as Secretary. Mike Jerke, CEO of Southwest Iowa Renewable Energy, was elected Treasurer, replacing the retiring Charlie Wilson of Trenton Agri Products.

RFA also welcomed new members this week. EcoEngineers and Cozairo Consultants became the organization’s newest associate members, while ICM, Inc. was welcomed as the group’s newest producer member. “RFA has had a long and fruitful relationship with ICM as an associate member, and we are thrilled to now welcome the company and its ICM Biofuels biorefinery to our producer member ranks,” said RFA President and CEO Geoff Cooper. “ICM CEO Dave VanderGriend is one of the true pioneers in the ethanol industry, and he’s been a longtime friend of the RFA. We’re pleased to have Dave joining our board of directors and look forward to working more closely with the entire ICM team.” VanderGriend received RFA’s annual industry award in 2012.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Announces Climate Smart Efforts

Cindy Zimmerman

Agriculture Secretary Tom Vilsack announced a new initiative Wednesday to “finance the deployment of climate-smart farming and forestry practices to aid in the marketing of climate-smart agricultural commodities.”

USDA will support a set of pilot projects that provide incentives to implement climate smart conservation practices on working lands and to quantify and monitor the carbon and greenhouse gas benefits associated with those practices. The pilots could rely on the Commodity Credit Corporation’s specific power to aid in expansion or development of new and additional markets. The Department published a Request for Information (RFI) seeking public comment and input on design of new initiative.

“This initiative we are launching will place a premium on accurate greenhouse gas accounting,” said Vilsack. “The pilots will invest in the science, monitoring and verification to measure the benefits of these climate smart practices.”

Vilsack added that biofuels will play a role in USDA’s climate smart efforts. “We believe biofuels today reduce greenhouse gas emissions by between 30 to 40 percent relative to gasoline,” said Vilsack. “Our efforts at USDA are going to focus on feedstock development and supply chain efficiencies.”

Vilsack announcements Colorado State University 34:00

Audio, biofuels, Carbon, Climate Change, Ethanol, USDA