Basse Expects China to Purchase Ethanol Soon

Cindy Zimmerman

Dan Basse of AgResource Company presented his 8th annual agricultural outlook American Seed Trade Association (ASTA) virtual CSS and Seed Expo this week.

While 2020 was rough on the ethanol industry, Basse believes renewable fuels will benefit under a Biden administration. “I think initially they’ll try to lean green so I think it’s favorable for the U.S. ethanol industry,” he said, forecasting about 5.3 billion bushels of corn to go into ethanol production next year.

Basse also expects demand for ethanol in China to increase and purchases to be made soon. “They’re now kicking tires to buy U.S. ethanol and some of those high value products which they can buy before the end of the year,” he said.

ASTA ethanol questions for Dan Basse, AgResource (3:06)

Basse is bullish on agriculture for the year ahead. “In my 40 years I’ve never seen a change as dramatic as we had in August and September in which we lost crops from a flash drought in the central U.S. and then we had this demonstrative Chinese demand that was pent up because of years of trade war,” he said. “We’re optimistic, we think the Chinese need to put on a happy face for the Biden administration.”

In this interview, Basse summarizes some of his main points in the agricultural outlook. His full presentation at the virtual ASTA CSS and Seed Expo is available on-demand for registered attendees.
ASTA Interview with Dan Basse, AgResource (11:45)

Find more content from ASTA CSS here:
2020 ASTA CSS & Seed Expo Virtual Newsroom

Audio, Ethanol, Ethanol News

Registration Open for 2021 National Ethanol Conference

Cindy Zimmerman

Registration is now open for the Renewable Fuels Association 26th annual National Ethanol Conference to be held in a fully digital format February 16-18.

Early bird registration is being offered before January 19 for significant savings on a packed program that already comes at a lower rate compared to 2020’s event.

“These rates for the National Ethanol Conference, along with a convenient schedule spread over three days, will allow more people to take part in what has been the most visionary policy and marketing event for the renewable fuels industry,” said RFA President and CEO Geoff Cooper. “Attendees will hear from leaders across the value chain and dive deep into topics such as ethanol’s place in a low-carbon future, federal energy policy in transition, and new research on how consumers view renewable fuels. As RFA celebrates its 40th anniversary next year, we’ve got a landmark event planned to match the milestone.”

In addition to enabling broader participation, the digital format will provide attendees the flexibility to view content live in real-time or on-demand and offer unique networking and business development opportunities.

The NEC is the nation’s most widely attended executive-level conference for the ethanol industry, providing an unequaled opportunity to engage key decision makers and industry executives about the latest opportunities and challenges affecting the industry today. Last year’s conference, which featured President George W. Bush as a special guest, attracted approximately 1,000 industry professionals representing 39 states, the District of Columbia, and 18 countries.

Director of Special Projects and Events Mary Giglio is the meeting planner for the digital event, which will be the 25th NEC she has planned and definitely the most unusual. In this interview, she talks about what they are planning for attendees.

Interview with RFA's Mary Giglio on the 2021 NEC (8:43)

Audio, Ethanol, Ethanol News, National Ethanol Conference

US Ethanol Exports Explode in October

Cindy Zimmerman

According to the latest analysis from the Renewable Fuels Association, U.S. ethanol exports in October rocketed 64% higher to 126.5 million gallons (mg), the largest volume since March.

Shipments crossing the border to Canada rebounded by 11% (35.6 mg), equivalent to 28% of total U.S. ethanol exports. The Netherlands purchased record gallons (24.2 mg) while sales to South Korea jumped to the largest monthly volume this year (15.0 mg). Other larger markets included India (11.6 mg), Colombia (11.1 mg), Norway (6.6 mg, a record high), Finland (3.8 mg), Nigeria (3.8 mg), Peru (3.5 mg), and Mexico (3.4 mg). Exports to Brazil were minimal for the fifth straight month. Global year-to-date exports of U.S. ethanol totaled 1.109 billion gallons, or 9% less than this time a year ago.

On the other hand, RFA reports that exports of dried distillers grains (DDGS) declined 18% in October to 951,500 metric tons (mt). While exports to the largest destinations moved higher, shipments to Japan scaled back after hitting a record high in September, accounting for half of the total month-on-month decline.

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Corn Growers Back Next Gen Fuels Act

Cindy Zimmerman

The National Corn Growers Association (NCGA) is supporting the Next Generation Fuels Act, introduced by U.S. Representative Cheri Bustos (D-IL) in September, as “the next step in corn farmers’ efforts to build on the success of the RFS.” NCGA leadership is urging members to contact their Congressional representatives and ask them to support the legislation.

The introduction of the bill follows several years of work by corn farmers to boost long term corn demand for clean, affordable ethanol. But introduction of this legislation is just the beginning of a long process.

The current Congress is set to adjourn by mid-December, making the next week a critical time to raise awareness and build additional support for the Next Generation Fuels Act. Building support and educating Members of Congress and their staffs now helps set the stage for the legislation to be reintroduced and considered in the new Congress in 2021.

The legislation focuses on growing the role of low carbon, affordable and renewable ethanol in the fuel supply. While the legislation does not require specific levels of ethanol blending, it removes barriers to higher blends of ethanol, creating more demand for farmers going forward.

corn, Ethanol, Ethanol News, NCGA

Renewable Energy Group Announces Changes

Cindy Zimmerman

Renewable Energy Group, Inc. this week announced organizational changes in its senior leadership team intended to “accelerate the company’s performance as a leader in a rapidly growing industry.”

Chad Stone will move from the Chief Financial Officer position into a newly created role of Senior Vice President, Commercial Performance, overseeing the company’s planning, scheduling and optimization functions to drive commercial performance of the business. Stone has been with REG as CFO since 2009. Todd Robinson, currently Treasurer and Executive Director, Investor Relations, will serve as interim CFO.

Brad Albin will be promoted to Senior Vice President, Manufacturing & Engineering, with continued oversight for this critical part of the company. Albin has been with REG since 2006, during which time he has led the substantial development and growth of the company’s production fleet and engineering function.

Natalie Merrill will be promoted to Senior Vice President, Business Development. Merrill joined REG in 2007 as a Senior Financial Analyst and has served in a variety of roles with increasing responsibility over the past 13 years.

Trisha Conley and Bob Kenyon, both new additions to REG earlier this year, will each be promoted to Senior Vice President, overseeing people development and sales and marketing, respectively. Conley came to REG from BP and Kenyon from Atlas Oil Company, and both have years of industry-related expertise.

Biodiesel, biofuels, REG, renewable diesel

McKinney: China Needs to Buy More Ethanol

Cindy Zimmerman

China is lagging behind in its purchases of energy products under the Phase One agreement, but USDA Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney says they could get there with more ethanol and distillers grains (DDGs).

During a virtual appearance at the Agricultural Retailers Association (ARA) annual conference this week, McKinney updated attendees on ag trade with a number of different regions, including China. McKinney says the question he gets asked a lot is “Will China make the 36.5 billion in purchases by December 31?”

“It’s looking tough,” he said. “The trajectory is right to meet that across a lot of commodities but we’re waning big time on purchases of energy…We think they could get there in a major way with the purchase of more ethanol and DDGs, but they’ve got to remove the CVDs (Countervailing Duties) on our DDGs.”

Listen to McKinney’s comment here:

USDA Under Secy Ted McKinney comments on China and Ethanol (1:06)

Audio, Distillers Grains, Energy, Ethanol, Ethanol News, Exports, Trade, USDA

Ethanol Industry Critical to Vaccine Distribution

Cindy Zimmerman

The ethanol industry will be playing a critical role in getting a vaccine for COVID-19 distributed quickly around the nation and the world. That is because ethanol plants are responsible for capturing roughly 40 percent of the national supply of CO2, as much as 3.5 million tons annually – and CO2 makes dry ice, which is used for transporting things like vaccines that need to stay very cold.

Renewable Fuels Association (RFA) Communications Director Ken Columbini shared ethanol’s important role in vaccine distribution in a blog post this week on the RFA website.

In essence, dry ice is simply CO2 in its solid form. As we learn more about plans for distributing the COVID-19 vaccine, it is becoming increasingly clear how enormous an undertaking this will be—especially considering the likely need for multiple doses. Essential to the storage and distribution of some forms of the vaccine will be an adequate and stable supply of dry ice, something we don’t quite have. The Pfizer vaccine under development, for example, will require a significant amount of dry ice to ensure the storage remains at the required minus 94 degrees Fahrenheit. Dry ice is vastly colder than regular ice and is therefore used for shipping foods and other items (like medicine) required to stay below a certain temperature for a long period of time. In this case, it’s ideal for moving and storing the new Pfizer vaccine.

Due to the development of these new vaccines and the need to store them at such extremely low temperatures, we’re now seeing a slight increase in dry ice demand, which means a slight increase in CO2 demand. But the need for more dry ice is coming at the same time that CO2 capture in the ethanol industry is down. This is in large part because some ethanol plants that capture CO2 remain idle or are operating significantly below normal rates of output due to repressed demand for their primary product—fuel ethanol. While production of captured CO2 from ethanol plants has improved since the spring, it remains about 25 percent below what it was at this time in 2019.

Read more.

Ethanol, Ethanol News, RFA

Corn Groups Join Ethanol Plants to Distribute Sanitizer

Cindy Zimmerman

AJ and Peg Hayes with Casey Jones Distillery, Commonwealth Agri-Energy General Manager Mick Henderson and KyCorn Executive Director Laura Knoth

State corn grower organizations have been partnering with local ethanol producers this year to distribute hand sanitizer. The National Corn Growers Association gave a few examples of how farmers have been helping out.

The Illinois Corn Growers Association partnered with other farm groups to distribute sanitizer to retailers to keep them in the field through the critical planting period. “I thought it was important to help the community during this crisis. It made the most sense to purchase products made right here in Illinois and distribute them across the state. Logistics was the trickiest part,” Rodney Weinzierl, executive director of Illinois Corn, said.

The New York Corn and Soybean Growers Association teamed up with Western New York Energy to deliver sanitizer to farmers. “We applaud Western New York Energy’s ability and willingness to pivot their business to provide much-needed sanitation resources while maintaining the market for our growers during these uncertain times,” said New York Corn and Soybean Growers Association Executive Director Colleen Klein.

The Kentucky Corn Growers Association partnered with Commonwealth Agri-Energy to donate bottles of sanitizer to ag retailers and venues like livestock sale barns and farmers markets. “Now more than ever, it’s important to stay connected and take care of one another,” said Kentucky Corn Executive Director Laura Knoth.

corn, Ethanol, Ethanol News

NBB Communications Director to Head KS Soybean

Cindy Zimmerman

The National Biodiesel Board (NBB) is losing a great communications director, but Kansas soybean growers are gaining a great new CEO for their organization.

NBB director of communications Kaleb Little has been named Chief Executive Officer of the Kansas Soybean Association and Administrator of the Kansas Soybean Commission. Little, who is a native of Kansas, follows in the footsteps of retiring Kenlon Johannes, who was the first executive director of the National SoyDiesel Development Board, which became NBB.

“We hate to see Kaleb leave NBB but couldn’t imagine a better fit for him, his family, and his leadership mindset than this position at Kansas Soybean,” NBB CEO Donnell Rehagen said. “I am extremely confident he will succeed in this new role and will provide valuable leadership to the farmers of his home state and on the national level.”

Little served in various communications roles at NBB since March 2010, most recently as the director of communications since June 2018 where he lead a team of two staff members and 18 key contractors to execute the wide array of annual communications projects at NBB. He has led high-level communications strategy and messaging on behalf of the biodiesel industry and has been instrumental in the annual National Biodiesel Conference & Expo over the years.

A native of Rossville, Kan., Little will take on the CEO and Administrator duties following the announced retirement of longtime Kansas Soybean leader Kenlon Johannes. Little remains with NBB through December and will start with Kansas Soybean January 4.

Biodiesel, NBB

Ontario to Increase Ethanol Content in Gas to 15%

Cindy Zimmerman

Canada’s most populous province has made a commitment to gradually increase the required ethanol content in gasoline to 15 percent by 2030.

Renewable Industries Canada (RICanada) welcomed the release of Ontario’s Environment Plan “Preserving and Protecting our Environment for Future Generations: A Made-In-Ontario Environment Plan” and the move to 15% ethanol in gasoline. RICanada estimates the province’s move to 15% ethanol blending will increase the annual economic impact of the locally produced biofuel by approximately $1.2 billion to a total of $3.7 billion.

Most of the ethanol produced in Ontario is made from corn grown in the southwestern part of the province. Over 90% of ethanol used in Ontario, or about 1.2 billion litres, is made in the province, supporting local jobs and farmers. Under the current 10% mandate, about 110 million bu of Ontario corn is used in ethanol production each year, accounting for almost one-third of total annual provincial production.

RICanada member companies worked with local farmers to pioneer Ontario’s ethanol industry. “For our ethanol company that is largely owned by Ontario farmers, these measures will have a direct and positive impact on our business by ensuring that there is a growing market for our made-in-Ontario product” said Kevin Norton, CEO-COO of IGPG Ethanol Inc.

E15, Ethanol, Ethanol News