Ethanol Production Slows

Cindy Zimmerman

Ethanol production slowed its steady upward pace last week for the first time since the end of April, dropping by 2.5 percent from the previous week.

According to EIA data analyzed by the Renewable Fuels Association for the week ending July 17, ethanol production slowed by 2.5%, or 23,000 barrels per day (b/d), to 908,000 b/d—equivalent to 38.14 million gallons daily. Production remains tempered due to COVID-19 disruptions, coming in 12.6% below the same week in 2019. The four-week average ethanol production rate ticked 0.3% higher to 913,000 b/d, equivalent to an annualized rate of 14.00 billion gallons.

Ethanol stocks thinned by 3.9% to 19.8 million barrels and 16.4% below year-ago volumes. Inventories tightened across all regions and are at their lowest level since the last week of 2016.

Ethanol, Ethanol News, RFA

RFA Board Conducts Virtual Hill Visits

Cindy Zimmerman

The Renewable Fuels Association (RFA) Board of Directors meeting this week included more than a dozen virtual visits with lawmakers and administration officials on Capitol Hill. Discussions covered a broad range of topics, including the impact of COVID-19 on ethanol producers, trade challenges and opportunities around the world, E15 market expansion, and EPA implementation of the Renewable Fuel Standard.

“With the ethanol industry still attempting to recover from the double-whammy of COVID-19 and RFS small refinery exemptions, it is more important than ever for our member companies to speak directly to elected leaders in Congress and important administration officials,” said RFA President and CEO Geoff Cooper. “While COVID-19 has changed the way we interact with members of Congress and agency leaders, it remains crucially important that ethanol producers advocate for our industry and stay engaged in the political process. Wednesday’s virtual Day on the Hill gave our members an excellent opportunity to share their questions and concerns, but also their gratitude, with key leaders in our nation’s capital.”

Participants in the virtual meeting included Sens. Chuck Grassley (R-IA), Deb Fischer (R-NE) and Dick Durbin (D-IL); House Reps. Cindy Axne (D-IA), Angie Craig (D-MN), Dusty Johnson (R-SD), Collin Peterson (D-MN), Adrian Smith (R-NE), Roger Marshall (R-KS), Rodney Davis (R-IL) and Cheri Bustos (D-IL). The event also included Gregg Doud, Chief Agricultural Negotiator for the U.S. Trade Representative; USDA Deputy Sec. Steve Censky; and Anne Idsal, principal deputy assistant administrator for the U.S. Environmental Protection Agency.

The virtual meetings were timely as the Senate this week is considering a fourth round of aid to address the impacts on the COVID-19 pandemic on the nation’s economy and ethanol producers are hoping to be included in that.

Ethanol, Ethanol News, RFA

2020 ACE Conference is Now Virtual

Cindy Zimmerman

The American Coalition for Ethanol will now be holding its Annual Conference as a virtual event in conjunction with the 2020 International Fuel Ethanol Workshop (FEW) on September 16, 2020.

Due to the outbreak of COVID-19 and the economic hardship it’s brought to bear on the ethanol industry, ACE leadership believes a virtual event, paired with the FEW, will provide members with a safe, robust opportunity to catch up on the latest industry news, network with peers, and discover new technology. The conference theme of “Rising Up” embodies the resilience demonstrated by those in the ethanol industry in response to the pandemic and the grit these individuals possess to rise together – stronger than before.

This year’s abbreviated event will consist of an afternoon of general session, including updates from ACE leadership, and insight on topics related to restoring and building ethanol demand. All ACE conference attendees will also be able to attend the FEW and vice versa.

Check here for registration and agenda details.

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

Nuseed to Supply Carinata for Top European Biodiesel Producer

Cindy Zimmerman

Nuseed Limited has a new agreement with the largest biodiesel producer in Europe to supply Nuseed Carinata as a feedstock for certified low carbon oil for renewable fuels and high protein non-GMO meal for livestock feed.

Nuseed, a subsidiary of Nufarm Limited, made the multi-year agreement with Saipol in France because the Nuseed Carinata production system was found to achieve best in class greenhouse gas reduction (GHG), certified by the leading independent globally recognized Roundtable on Sustainable Biomaterials (RSB).

Brent Javra, Nuseed Global Commercial GM, said, “Nuseed Carinata provides excellent opportunity for farmers and processors to participate in the global climate change effort through reduced GHG emissions in agriculture and transportation.”

Saipol is a European leader in oilseed processing that develops markets for edible vegetable oils and derivatives, protein-rich meals, and low carbon renewable fuels.

Nuseed plans to significantly scale-up production of carinata grain in Argentina over coming seasons, with longer term plans to develop the crop in additional South American markets and other parts of the world.

Biodiesel, feedstocks, International

Industry Pays Tribute to Ethanol Answer Man

Cindy Zimmerman

The ethanol industry is mourning the loss of another pioneer. Larry Johnson, known as the “Ethanol Answer Man,” passed away July 19 at the age of 76.

Larry was active in the Minnesota Corn Growers Assn., transitioning into ethanol promotion with the Minnesota Department of Agriculture. He later became a private consultant to the ethanol industry, traveling around the country and the world promoting ethanol. He served on many boards and task forces, most recently as Secretary of AURI (Agricultural Utilization Research Institute).

Renewable Fuels Association Senior Strategic Advisor Bob Dinneen called Johnson a “titan” in the ethanol industry. “I learned a lot from Larry, some of which was ethanol related, most of which was about life and priorities,” Dinneen tweeted. “He will be sorely missed.”

Larry Johnson at first ACE Biofuels Beltway March in 2013

American Coalition for Ethanol (ACE) CEO Brian Jennings said, “Like ACE’s founder Merle Anderson, Larry Johnson was first and foremost a Minnesota farmer who saw ethanol as a way to help rescue the rural economy from the 1980s farm crisis. Indeed, he was a driving force behind the effort to ensure farmers had an ownership stake in the ethanol industry. As the former President of the Minnesota Corn Growers Association and member of the National Corn Growers Association Board of Directors, Larry was also instrumental in pushing for public policies to benefit farmers and the ethanol industry.”

Click here for the obituary.

ACE, Ethanol, Ethanol News, RFA

RFA General Counsel Appointed to USDA Trade Committee

Cindy Zimmerman

Renewable Fuels Association General Counsel Ed Hubbard has been appointed to the USDA Foreign Agricultural Service’s Agricultural Technical Advisory Committee (ATAC) for Trade in Grains, Feed, Oilseeds and Planting Seeds. Hubbard is the only appointee to any of the advisory committees who represents the renewable fuels industry.

The ATAC advises the Secretary of Agriculture and the United States Trade Representative on matters that are of concern to the United States and to its consumers, producers, processors, and traders of grains, feed, oilseeds and planting seeds in connection with the trade policy activities undertaken by the United States and provides advice and information regarding trade issues that affect both domestic and foreign production and trade concerning these products.

Hubbard has been general counsel for RFA since 2011 and also leads the association’s efforts in advancing its tax and international trade public policy agenda.

Ethanol, Ethanol News, RFA, USDA

Grand Forks Buses Go Green With Biodiesel

Cindy Zimmerman

The Cities Area Transit (CAT) buses in Grand Forks, North Dakota are sporting a new look this summer to celebrate the switch to B20, a blend of 20 percent biodiesel and 80 percent petroleum diesel.

To help introduce residents to biodiesel and its benefits, the Route 7 bus that travels from downtown, along Washington St. and around the shopping hub is sporting a full biodiesel wrap. Biodiesel messaging can also be seen on the backs of three other bus routes throughout the city. The wraps are a partnership between CAT, the North Dakota Soybean Council and the National Biodiesel Board.

“Utilizing public transit helps Grand Forks residents reduce the impact of transportation on the environment,” said Ali Rood, Cities Area Transit Mobility Manager. “Using public transit fueled by a clean, more renewable fuel blend reduces the impact even further.”

Rob Rose, North Dakota Soybean Council director and farmer said, “This is a great example of successful, farmer-led investment of our soybean checkoff dollars in education and market development for value-added products.”

Biodiesel, NBB

EPA Receives More Gap-Year Waiver Requests

Cindy Zimmerman

Environmental Protection Agency (EPA) has updated its Small Refinery Exemption (SRE) dashboard, revealing six more retroactive “gap-year” petitions for compliance years 2011 through 2016 under the Renewable Fuel Standard (RFS), bringing the total now to 58.

“We are already halfway through the year and instead of taking steps to comply with the January Tenth Circuit Court ruling to limit Small Refinery Exemptions under the Renewable Fuel Standard, EPA seems merely interested in providing refiners yet another escape hatch in the form of the now nearly 60 retroactive waiver requests,” said American Coalition for Ethanol (ACE) CEO Brian Jennings.

The EPA dashboard shows 86 SRE petitions currently pending, including the 58 gap year SRE petitions.

ACE, EPA, Ethanol, Ethanol News

Fuel Ethanol Workshop to go Virtual in September

Cindy Zimmerman

Yesterday it was a go for a live event in Omaha next month. Today BBI International announced that the 2020 International Fuel Ethanol Workshop & Expo (FEW) has been moved and will be virtual, due to COVID-19.

The event will now take place September 15-17, 2020 and will be a live online event only. The virtual FEW will include a general session, a live virtual expo hall, all listed track sessions, pre-conference events, the co-located Biodiesel Production Technology Summit and the ACE Annual Conference. Attendees will be able to access all presentations, networking events, the virtual expo hall and chat rooms.

“It’s been somewhat of a roller coaster this year and we recognized turning the FEW into a virtual event would be the safest and most cost-effective option for our attendees, and it would also eliminate any hovering uncertainty,” said Joe Bryan, CEO of BBI International. “The event will still contain a massive amount of content, networking opportunities and multiple ways to promote products and services, all from the safety of your office or home.”

The American Coalition for Ethanol (ACE) annual meeting was scheduled to take place August 26 as part of FEW. The organization has been invited to be part of the virtual FEW event and more information will be coming shortly.

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

RFA Study Estimates Ethanol Industry COVID Losses

Cindy Zimmerman

A new economic analysis from the Renewable Fuels Association (RFA) shows the COVID-19 crisis has already led to more than $3.4 billion in lost revenues for the U.S. ethanol industry, and could ultimately reach nearly $9 billion.

The new study by RFA Chief Economist Scott Richman uses empirical data to assess the actual impact of COVID-19 on the ethanol industry to date. For the period running from March through June 2020, the study found:

– The cumulative decline in ethanol production and consumption exceeded 1.3 billion gallons.
– Nearly 500 million fewer bushels of corn were used in ethanol production during the period.
– Industry revenues from ethanol and co-products sales were reduced by over $3.4 billion due to the combination of reduced output and lower prices.

Based on EIA and FAPRI projections and assuming current market conditions do not deteriorate, total pandemic-related revenue losses for the industry could approach $7 billion in 2020 and $1.8 billion in 2021. However, if additional travel and business restrictions are adopted by states, the losses would be larger and may even surpass the $10 billion estimate from RFA’s initial forward-looking analysis released in April.

“At one point in late April, more than half of the ethanol industry’s production capacity was shut down,” said RFA President and CEO Geoff Cooper. “We have seen conditions improve since the low point in April, but ethanol production and consumption remain well below pre-COVID-19 levels.”

RFA CEO on ethanol industry losses (2:05)

Audio, Ethanol, Ethanol News, RFA