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

Growth Energy Threatens to Sue EPA

Cindy Zimmerman

Growth Energy has submitted a notice of intent to sue letter to the Environmental Protection Agency (EPA) regarding its failure to fulfill its statutory obligation to issue the 2021 Renewable Volume Obligation (RVO) by the November 30th statutory deadline. The notice gives EPA 60 days to issue the 2021 RVO before risking a lawsuit in federal court.

Growth Energy CEO Emily Skor said, “As we head into a new year and our industry continues to try and recover from the effects of COVID-19, EPA’s failure to meet their statutory obligation to issue RVOs piles on the uncertainty in the fuel marketplace. The Agency needs to take action on behalf of rural America and follow through with its RFS obligation.”

The Growth Energy letter to EPA notes that failure to set the RVO undermines the RFS and could lead to uncertainty in the market and lower than necessary biofuel blending levels.

EPA, Ethanol, Growth Energy

NFU Disappointed by EPA Failure to Set 2021 RVOs

Cindy Zimmerman

The National Farmers Union (NFU) is disappointed by the Environment Protection Agency’s (EPA) failure to meet the November 30 deadline to issue 2021 renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS).

“By punting a decision on 2021’s RVOS to the next administration, EPA is introducing yet more uncertainty to the biofuels industry ­– uncertainty that most farmers and biofuels producers can’t afford right now,” said NFU President Rob Larew. “To add insult to injury, fuel use – and, consequently, ethanol use – has dropped significantly during the pandemic, cutting deeply into profits.

“Trump’s EPA has almost invariably fallen short in its handling of biofuels, and today’s decision, or lack thereof, is no different. We sincerely hope Biden’s EPA learns from their mistakes and takes biofuels policy in a much more promising direction.”

EPA, Ethanol, Ethanol News, NFU

Less Flex Fuel Vehicle Offerings for 2021

Cindy Zimmerman

The annual Renewable Fuels Association (RFA) analysis of vehicle owner’s manuals and warranty statements finds almost all new 2021 automobiles are approved for E15 gasoline, but very limited offerings for flex fuel vehicles (FFVs) capable of operating on fuel blends containing up to 85% ethanol.

Only Ford and General Motors are offering FFVs in model year 2021 with 11 models available, five of which are models available only to fleet purchasers. That’s down from more than 80 different models from eight manufacturers being available to consumers as recently as model year 2015. See what models are FFV compatible

RFA President and CEO Geoff Cooper says they continue to strongly advocate for the production of more FFVs and fairness in how alternative fuel vehicles are incentivized under fuel economy and greenhouse gas regulations. “Consumer demand for E85 and other flex fuels is at an all-time high, meaning drivers are looking for more—not fewer—FFV options on dealership lots across the nation,” said Cooper. “Unfortunately, however, EPA’s latest vehicle emissions regulations essentially eliminate the automaker incentive to build FFVs, while at the same time heaping incentives on automakers who build electric vehicles.”

The good news for drivers is that manufacturers responsible for nearly 95 percent of U.S. light-duty vehicle sales unequivocally approve the use of E15 in their model year 2021 automobiles. For the 10th consecutive year, all new General Motors vehicles are clearly approved to use E15, while Ford has explicitly endorsed E15 in nine straight model years. Among major automakers, only Mercedes-Benz, Mazda, Mitsubishi, and Volvo do not mention E15 as an approved fuel, while BMW and Mini vehicles approve the use of up to E25 blends in all models. See all autos E15 approval status

Car Makers, E15, E85, Ethanol, Ethanol News

EPA Misses 2021 RFS Deadline

Cindy Zimmerman

For the first time under the Trump administration, the Environmental Protection Agency missed the November 30 statutory deadline for publishing the final rule for next year’s Renewable Volume Obligations under the Renewable Fuel Standard (RFS). In fact, EPA never even issued a proposed rule for the 2021 RVOs.

“And even if a proposed rule was released today, it would be next to impossible to have a final rule done by the end of the calendar year, or even by inauguration day,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “Typically we see those proposed volumes in July and it’s a four or five month process from beginning to end.”

RFA CEO Cooper comments on RVO delay (:49)

American Coalition for Ethanol (ACE) CEO Brian Jennings says it was common for the final rule to be delayed prior to the current administration. “Under the Obama Administration, EPA notoriously failed to get the volumes finalized by the November 30 statutory deadline,” said Jennings.

ACE CEO Jennings comments on RVO delay (:54)

At this point, the new administration will likely handle the entire 2021 RVO rulemaking process, but that will have to wait until a new EPA administrator is confirmed. “We know it may take a few months for the new administration to get a final 2021 RVO rule done, but in the meantime, the statute is crystal clear that refiners must blend at least 15 billion gallons of conventional renewable fuel in 2021,” said Cooper.

ACE, Audio, EPA, Ethanol, Ethanol News, RFA

Ethanol Production Closer to Pre-COVID Levels

Cindy Zimmerman

Weekly ethanol production is edging closer to pre-COVID levels.

According to the latest data analyzed by the Renewable Fuels Association for the week ending November 20, ethanol production increased almost 3% to 990,000 barrels per day and the highest production since the end of March. However, production remained 6.5% below the same week last year. The four-week average ethanol production rate rose for the seventh straight week, up 1.3% to 972,000 b/d, equivalent to an annualized rate of 14.90 billion gallons (bg).

Ethanol stocks grew by 3.3% to 20.9 million barrels, the highest volume since August and 2.9% above a year-ago.

Click on the image to see full size graph.
Find more ethanol supply and demand information from RFA.

Ethanol, Ethanol News, RFA