Corn Use for Ethanol Estimate Lowered

Cindy Zimmerman

The August derecho that charged across the Midwest has taken its toll on the latest crop estimates in USDA’s September World Agricultural Supply and Demand report.

Corn production is forecast at 14.9 billion bushels, down 378 million from last month on a lower yield forecast and reduction in harvested area. Corn supplies are reduced from last month, as a smaller crop more than offsets greater beginning stocks mostly due to lower estimated exports for 2019/20. Corn used for ethanol for 2020/21 is lowered 100 million bushels based on the continued slow recovery in motor gasoline demand as a result of COVID-19. Exports are raised 100 million bushels reflecting reduced supplies in competitor countries.

Despite the decline, the 2020 corn crop would still be nine percent higher than last year and the second highest in history, with a record yield of 178.5 bushels per acre.

corn, Ethanol, Ethanol News, USDA

Brazil and US Agree to Extend Quota for 90 Days

Cindy Zimmerman

Trade representatives from Brazil and the United States have agreed to a 90 day extension of the tariff-rate quota (TRQ) for ethanol as both sides continue to discuss ways they can improve market access to “achieve reciprocal and proportional outcomes that generate trade and open markets to the benefit of both countries.”

According to a joint statement released by the U.S. Trade Representatives office, they will discuss an arrangement to improve market access for ethanol and sugar and will also consider an increase in market access for corn in both countries.

The two countries will also discuss ways to ensure there is fair market access along with any increase in the consumption of ethanol, as well as to coordinate and ensure that the ethanol industries in both countries will be treated fairly and benefit from future regulatory changes on biofuel products in Brazil and the United States.

Brazil and the United States agreed to proceed in this manner in the spirit of the economic partnership created under the leadership of Presidents Trump and Bolsonaro, acknowledging the need to continue to constructively address the effects of the crises generated by the COVID-19 pandemic on their bilateral trade and domestic production.

Brazil, Ethanol, Ethanol News, Exports

President Trump Order to Help Grow E15

Cindy Zimmerman

President Donald Trump tweeted an announcement out over the weekend directed at increasing availability and sales of 15% ethanol blended fuel.

“Subject only to State approval, our important Ethanol Industry will be allowed to use the 10% Pumps for the 15% BLEND,” the president tweeted on Saturday morning, thanking several ethanol state senators including Joni Ernst of Iowa. He called Sen. Ernst to share the news with her personally.

“That saves tremendous amounts of money for the people in the ethanol industry,” President Trump said over the phone as Sen. Ernst shared the call on Twitter. “Like hundreds of millions of dollars I hear for the conversion (of pumps for E15) and there’s no reason to do it.”

“We thank President Trump for his commitment to removing obstacles to E15 and for again highlighting the importance of the ethanol industry to our nation’s economy and energy security,” said Renewable Fuels Association President and CEO Geoff Cooper. “We look forward to learning more about the President’s plans to expand the nationwide use of E15, as well as EPA’s intentions with the 98 pending small refinery exemption petitions under the Renewable Fuel Standard.”

Listen to President Trump announce the E15 decision to Sen. Ernst.
Pres. Trump announces E15 policy (1:05)

Audio, E15, EPA, Ethanol, Ethanol News, RFA

RFA Provides Testimony to EPA Advisory Committee

Cindy Zimmerman

EPA’s Farm, Ranch and Rural Communities Advisory Committee is meeting virtually this week to provide policy advice, information, and recommendations on a range of environmental issues and policies important to agriculture and rural communities. Renewable Fuels Association President and CEO Geoff Cooper provided testimony on steps the EPA needs to take immediately to support U.S. ethanol producers and rural America.

Cooper outlined five areas where EPA action has been delayed and needs to move forward. Specifically, he called on the agency to:
– adopt the recent Tenth Circuit Court decision (Renewable Fuels Association et al. v. Environmental Protection Agency) nationwide;
– deny all pending so-called “gap year” small refinery exemption (SRE) petitions;
– decide the 31 pending SRE petitions for 2019 and 2020 according to the Tenth Circuit Court criteria;
– publish the proposed rule for 2021 renewable volume obligations (RVOs); and
– as ordered by the U.S. Court of Appeals for the D.C. Circuit in ACEI v. EPA, restore the 500-million-gallon conventional renewable fuel volume that was illegally waived from the 2016 RFS requirements.

Ethanol supporting members of the EPA advisory committee participating in this week’s meeting include RFA Board Member Bill Pracht of East Kansas Agri-Energy; Bill Couser, Couser Cattle Company, Iowa; and Jim Zook, Executive Director, Michigan Corn Growers.

EPA, Ethanol, Ethanol News, RFA

ACE Rises Up to Challenge of Virtual Annual Conference

Cindy Zimmerman

Once upon a time, the American Coalition for Ethanol (ACE) 33rd annual conference was scheduled to be held last month as an in-person event like conferences used to be held back in the pre-COVID world. Instead, producers from all over the country will now be able to attend a virtual event on September 16 and come away more informed on some of the most pressing issues facing the ethanol industry.

The conference theme of “Rising Up” embodies the resilience demonstrated by those in the ethanol industry in response to the pandemic and as part of the agenda for the virtual Fuel Ethanol Workshop this year, more producers will be able to attend than ever before.

The abbreviated 2020 live virtual event will consist of several general sessions, including updates from ACE leadership, a keynote address from USDA Deputy Secretary Stephen Censky, a flex fuel retailer roundtable featuring Casey’s General Stores and Pump & Pantry, a panel discussion with leadership from ethanol companies, as well as a market outlook from Tom Kloza, OPIS Head of Energy Analysis.

Shannon Gustafson, ACE Senior Director of Operations and Programming, provides a preview of the event in this interview.
ACE 2020 preview interview, Shannon Gustafson (8:43)

Annual ACE Conference information and registration

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News

Meet Biodiesel Scientists Making an Impact

Cindy Zimmerman

A virtual event is being held this afternoon (September 10) with the co-chairs of the Next Generation Scientists for Biodiesel to let them show some of the real-world impacts of their biodiesel research and outreach.

In this live Zoom event, meet four students serving as the new co-chairs of the Next Generation Scientists for Biodiesel, improving the world through science.

From an environmentally beneficial cover crop with promising potential as a biodiesel feedstock, to how biodiesel prevails in the economics of decarbonization, to campuses making and using biodiesel in city buses, you won’t want to miss their rapid-fire presentations!

Speakers: John Jansen/United Soybean Board, Floyd Vergara/ National Biodiesel Board, Leo Budy/University of Kansas, Zenith Tandukar/University of Minnesota, Jenny Frank/SUNY ESF, and John Cramsey/Iowa State University.

The event will be held from 4:00-5:00 central time today – register here.

Biodiesel, Education, NBB, Research, Science

Virtual FEW to Recognize Ethanol Industry Award Winners

Cindy Zimmerman

The International Fuel Ethanol Workshop & Expo (FEW) coming up next week will recognize recipients of its annual awards during the event’s virtual general session.

Doug Tiffany is receiving the FEW Award of Excellence and Doug Durante is this year’s High-Octane Award recipient.

Tiffany is the 18th recipient of the Award of Excellence, which recognizes professionals who have made meaningful contributions to the ethanol industry through research or technical advisory. The production economist has dedicated significant portions of his academic life to techno-economic analyses related to ethanol production. As a research fellow within the University of Minnesota’s Department of Bioproducts and Biosystems Engineering, Tiffany has worked on an array of ethanol-related projects ranging from biomass power, cogeneration and coproduct innovation to feedstocks, grain shipping patterns and new products.

The High-Octane Award celebrates passionate ethanol champions, educators and advocates. Durante is the founder and executive director of the Clean Fuels Development Coalition. In addition to producing the Ethanol Across America campaign, The Ethanol Fact Book, The Ethanol Minute radio program and more, he has been involved in almost every federal ethanol policy development over the past 40 years, from the trailblazing work of the National Alcohol Fuels Commission in the early ’80s, to the 1990 Clean Air Act and the Renewable Fuel Standards of both 2005 and 2007.

Both winners will give an acceptance speech during the FEW’s opening session Wednesday, September 16. The 2020 FEW is taking place September 15-17 in conjunction with the American Coalition for Ethanol’s Annual Conference. Both events are happening in a 100% virtual environment and are free for ethanol producers.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News, FEW

Ethanol Supporters Hopeful Waivers Will Be Denied

Cindy Zimmerman

Ethanol supporters are encouraged by news this morning that President Donald Trump has directed EPA to deny retroactive refinery exemptions, as he promised Sen. Joni Ernst of Iowa that he would.

The Renewable Fuels Association (RFA), National Corn Growers Association (NCGA), National Farmers Union (NFU) and American Coalition for Ethanol (ACE) released a statement welcoming the news that petitions intended to circumvent the Tenth Circuit Court’s decision on waivers might be denied.

“We are encouraged by reports that President Trump has called upon EPA to reject these absurd gap-year waiver petitions out of hand. If the reports are accurate, it is our hope that EPA swiftly acts upon the President’s directive and closes the door once and for all on the refiners’ brazen attempt to rewrite history.”

During a briefing on storm damage in Iowa last month, Sen. Ernst (R-IA) specifically asked the president about retroactive small refinery exemptions for previous years and the need for EPA to follow the intent of the Renewable Fuel Standard (RFS). President Trump replied, “We’ll speak to them. I’ll do it myself.”

At the same time, the four petitioners in the successful Tenth Circuit Court case are disappointed that CVR Refining and HollyFrontier Corporation filed a last minute request for the U.S. Supreme Court to review the Tenth Circuit Court’s ruling. The decision in question overturned three improperly granted small refinery exemptions under the Renewable Fuel Standard (RFS).

ACE, EPA, Ethanol, Ethanol News, NCGA, NFU, RFA, RFS

U.S. Ethanol Exports to Brazil Already Falling

Cindy Zimmerman

Despite no official announcement, technically once the August 31 deadline passed, all U.S. ethanol shipped to Brazil became subject to a 20 percent tariff. However, U.S. exports to Brazil have already been declining this year, according to the Renewable Fuels Association (RFA).

The latest government data shows U.S. ethanol exports down to 74 million gallons in July, a decrease of 38 percent compared to the same month last year and the lowest total for July in six years. The escalation of trade barriers and the impacts of COVID-19 have caused year-to-date ethanol exports to drop nine percent compared to the same period last year and 22 percent compared to the same period in 2018.

In addition to Brazil, RFA notes that virtually no U.S. ethanol was shipped to China or Colombia in July due to the existence of unjustified trade barriers in those countries. Combined export volumes to all three countries hit a peak of 129 million gallons in March 2018, but dropped to a trickle of just 34,000 gallons in July 2020. Prior to August 31, the Brazilian tariff rate quota had allowed 198 million gallons of U.S. ethanol imports before the 20% tariff kicked in.

“As the July export numbers show, the spread of protectionist trade barriers around the globe is having a very real impact on demand for U.S. ethanol,” said RFA President and CEO Geoff Cooper. “These tariff and non-tariff barriers must be addressed and countered with measures that ensure a fair and level playing field for ethanol trade. The persistent ethanol trade disputes involving key markets like Brazil, China, and Colombia are taking a serious toll on U.S. ethanol producers who are already contending with the economic fallout from COVID-19. More needs to be done to restore open and healthy ethanol trading relationships with our customers around the globe.”

House Agriculture Committee Chairman Collin Peterson says Brazil’s move is just more bad news for producers already struggling because of the coronavirus and the “Environmental Protection Agency’s reckless implementation” of the Renewable Fuel Standard. “The Trump Administration should continue working with Brazilian officials to restore the duty-free access that was in place from 2012 to 2017,” Peterson said in a statement. “Tariff wars have consequences, and our biofuels producers are seeing that first hand.”

Meanwhile, Iowa Renewable Fuels Association Executive Director Monte Shaw points out that Brazilian ethanol imports continue to enjoy tariff free status coming into the U.S. “President Trump stated his Administration would pursue an equalization of tariffs if Brazil took this step. We look forward to quick action on this front as Brazil continues to flood the California market with duty-free ethanol while at the same time penalizing U.S. producers,” said Shaw.

U.S. ethanol production continues to run below year ago levels. For the week of August 28, production remained nine percent below the same week in 2019 as a result of the continuing effects of the COVID-19 pandemic. The four-week average ethanol production rate declined 0.2% to 924,000 b/d, equivalent to an annualized rate of 14.16 billion gallons. At the same time, ethanol stocks grew 2.3% to 20.9 million barrels, which was 12.3% below year-ago volumes.

Brazil, Ethanol, Ethanol News, RFA, Trade

Heating Oil Groups Launch Joint Bioheat Promotional Campaign

Cindy Zimmerman

Five of the most prominent northeast heating oil trade associations recently launched a collaborative effort to promote clean, renewable Bioheat to consumers and get more heating oil companies to begin offering Bioheat to their customers.

The campaign One Industry – One Choice includes the Energy Marketers Association of Rhode Island, the Empire State Energy Association, the Connecticut Energy Marketers Association, the Massachusetts Energy Marketers Association and the New York State Energy Coalition. The effort is also being supported by the National Oilheat Research Alliance and the National Biodiesel Board.

“We must do everything in our power to secure a stable future for the heating oil industry by educating heating oil retailers on the benefits of Bioheat blends; providing support to retailers transitioning to providing Bioheat to their customers; and making heating oil customers more aware of the value of clean, renewable Bioheat.”

To reach consumers, the One Industry – One Choice campaign will utilize social media and web-based display advertising that will lead consumers to a vast amount of information on www.mybioheat.com and the association websites. For retailers, five virtual education sessions will be offered in September covering Bioheat Supply & Infrastructure, Bioheat Operational Performance, Bioheat Retail Success Stories, Bioheat Marketing, and Bioheat:The Electrification Solution.

Biodiesel, Bioheat, NBB