Ethanol Production Continues Decline

Cindy Zimmerman

The latest production numbers for the week ending April 17 continue to reflect the impact of COVID-19 restrictions on the ethanol industry.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production declined 1.2%, or 7,000 barrels per day (b/d), to 563,000 b/d—the lowest level since the EIA began reporting ethanol production statistics in 2010. Production was 46% below the same week in 2019. The four-week average ethanol production rate dropped 14.4% to 661,000 b/d, equivalent to an annualized rate of 10.13 billion gallons.

Ethanol stocks rose 0.8% to a record 27.7 million barrels, eclipsing last week’s previous peak. However, the bulk of inventory growth occurred in the Gulf Coast (PADD 3), up 5.8%, with the East Coast (PADD 1), Rocky Mountain (PADD 4), and West Coast (PADD 5) regions scaling back.

A sign of hope, the volume of gasoline supplied to the U.S. market, a measure of implied demand, moved 4.5% higher to 5.311 million b/d (81.42 bg annualized) – which is still 44% lower than a year ago.

Similarly, refiner/blender net inputs of ethanol were up 3.4% to 523,000 b/d, but still 44% below the year-earlier level.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Demo Site Picked for Ethanol Industry Pollinator Program

Cindy Zimmerman

The ethanol industry is celebrating Earth Day with the announcement that Trenton Agri Products (TAP) in Nebraska will become the first demonstration site for a new ethanol industry initiative to expand pollinator habitat in key production regions.

TAP will establish a 5-acre pollinator plot this spring near the entrance to their facility to increase awareness and encourage local farmers to expand pollinator habitat on private lands. The plot will remain in place for at least three years.

The Renewable Fuels Association and Renewable Fuels Nebraska made the announcement which begins implementation of the pilot project launched in February. The initiative also includes Nebraska Corn (comprising the Nebraska Corn Board and the Nebraska Corn Growers Association) and Pheasants Forever, Inc. in collaboration with Field to Market: The Alliance for Sustainable Agriculture to expand critical pollinator habitat as part of the ethanol industry’s commitment to improving biodiversity.

Environment, Ethanol, Ethanol News, pollinators, Renewable Fuels Association, RFA

NCGA CEO Podcast on Future of Ethanol

Cindy Zimmerman

This may be a tumultuous time for corn farmers and ethanol producers – but then again, the ethanol industry’s entire history has been a roller coaster ride.

The latest episode of “Wherever Jon May Roam” with National Corn Growers Association (NCGA) CEO Jon Doggett revisits the battles that got us to this point with “the Godfather of Ethanol” himself, Bob Dinneen from the Renewable Fuels Association. They are also joined by NCGA’s Director of Renewable Fuels, Mark Palmer, to discuss what the future might hold as the ethanol industry navigates a new set of uncertain times.

Listen and enjoy!
Wherever Jon May Roam – Future of the Fuel Industry

Ethanol, Ethanol News, NCGA, Podcasting, RFA

Ethanol Industry Losses Mount

Cindy Zimmerman

As the COVID-19 pandemic and crude oil glut continue to ravage world fuel markets, U.S. ethanol sales in 2020 could fall by more than $10 billion and the industry’s contribution to gross domestic product (GDP) could drop by nearly one-third, according to a new analysis by the Renewable Fuels Association (RFA).

The economic losses stem from a “pernicious combination of steep production cuts and sharply lower prices” in response to COVID-19 stay-at-home orders and the resulting collapse in fuel consumption, according to the report.

RFA held a press conference Monday to discuss the new report, as well as other developments in the industry related to the COVID-19 response. Participating were:

Geoff Cooper, President and CEO, Renewable Fuels Association
Neil Koehler, Chairman, RFA; Co-Founder and CEO of Pacific Ethanol
Mike Jerke, CEO of Southwest Iowa Renewable Energy
Mick Henderson, General Manager, Commonwealth Agri-Energy
Scott Richman, Chief Economist, Renewable Fuels Association

RFA COVID-19 update (58:46)

Audio, Ethanol, Ethanol News, RFA

Ethanol Left Out of USDA Aid Plan

Cindy Zimmerman

U.S. ethanol producers struggling with the largest downturn in the history of the industry were disappointed to hear that the new $19 billion USDA aid program will provide no direct help for them.

“While we appreciate that USDA’s new program provides needed assistance to the nation’s farmers and ranchers, it is unfortunate and disappointing that the 350,000 workers supported by America’s ethanol industry were left behind,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper.

When asked about biofuels during a press conference announcing the aid, Secretary of Agriculture Sonny Perdue said, “Frankly, there’s just not enough money to go around, the demand from all sectors is more than we could accommodate at this time.”

Learn more about what is included in the plan from USDA.

USDA Coronavirus Food Aid Press Call (30:49)

Audio, biofuels, Ethanol, Ethanol News

Ethanol Groups Criticize Oil States’ RFS Waiver Request

Cindy Zimmerman

As ethanol production continues to be decimated by the impact of the COVID-19 restrictions and supplies keep growing, oil state governors are asking EPA to waive renewable volume obligations under the Renewable Fuel Standard, an action that industry leaders say is both wrong and illegitimate.

“Apparently toilet paper isn’t the only thing in short supply in oil states these days—clearly, these governors are experiencing an acute shortage of facts and reality too,” said Geoff Cooper, president and CEO of the Renewable Fuels Association. “It’s clear they know absolutely nothing about how the Renewable Fuel Standard actually works. They outrageously claim that a waiver is needed because of ‘depressed demand for transportation fuel.’ But because EPA translates the RFS into a percentage each year, the renewable fuel blending requirements already adjust in tandem with changes in gasoline and diesel consumption. So, if COVID-19 causes 2020 gasoline and diesel demand to drop 15 percent, for example, the renewable fuel blending requirements drops by the exact same amount.”

American Coalition for Ethanol (ACE) CEO Brian Jennings pointed out a letter they sent to the EPA earlier this month which contends that EPA needs to adjust the percentage of renewable fuel volume obligated parties must use in 2020 upward to offset the nosedive in gasoline use as a result of coronavirus, otherwise EPA will be violating the RFS statute which amounts to an illegal waiver of blending volumes.

“Not only should EPA dismiss the oil-state governors’ RFS waiver request, the Agency should act swiftly to increase blending obligations in 2020 because the economic fallout from COVID-19 is destroying demand for ethanol below statutory levels. ACE’s recent letter to EPA is the counterpoint to the governors’ RFS waiver request. Unless and until EPA increases the percentage of renewable fuel volume obligated parties must use in 2020, it is already handing oil refiners a nationwide waiver illegally,” said Jennings.

The governors of five oil states – Texas, Oklahoma, Wyoming, Utah and Louisiana – have asked the EPA to waive the RFS.

ACE, Ethanol, Ethanol News, RFA, RFS

Ethanol Report 4-16-20

Cindy Zimmerman

The social-distancing and stay-at-home restrictions associated with COVID-19 continue to take a devastating toll on U.S. ethanol producers with about half of the industry’s capacity now idled.

But the good news is how those ethanol producers, their farmer-owners and employees, have turned around and put those idled plants to good use by helping those on the front lines fighting the virus.

In this Ethanol Report podcast, we get an update from Renewable Fuels Association (RFA) president and CEO Geoff Cooper on how the industry is being impacted by the crisis, and we talk to KAAPA Ethanol CEO Chuck Woodside about what they are doing to help and keep their spirits up at the same time.

Ethanol Report 4-16-20 (23:11)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

Ethanol, Ethanol News, Ethanol Report, RFA

ASA Hires Biofuels & Infrastructure Policy Lead

Cindy Zimmerman

The American Soybean Association (ASA) has hired Alexa Combelic to lead biofuels and infrastructure policy on its government affairs team starting May 4.

Combelic joins ASA as a Director of Government Affairs. Her portfolio will include biofuels and infrastructure, both of which are current priority issues for ASA. In her previous roles, Combelic has worked on a vast array of issues applicable to and of interest to soy, among them agriculture, transportation, energy, appropriations, labor, trade, environment and nutrition.

Combelic has served in various Hill staff roles the past 10 years, working for Members of both the House and Senate, and currently is legislative director for Congressman Joe Courtney of Connecticut.

ASA, Biodiesel, biofuels, Soybeans

Analysis Shows U.S. Agriculture Reducing Emissions

Cindy Zimmerman

American agriculture is more environmentally sustainably than ever.

A new analysis of updated data from both USDA and EPA shows U.S. farmers and ranchers continue to reduce per-unit greenhouse gas emissions. All told, the U.S. agricultural sector accounts for less than 10% of total U.S. emissions. That’s less than the emissions from the transportation, electricity generation and industrial sectors. Globally, agriculture accounts for about 24% of GHG emissions.

At the same time, American farmers are producing more crops on fewer acres, according to an analysis of USDA data. When compared to farm production in 1990, U.S. farmers would have needed almost 100 million additional acres to grow the same amount of corn, cotton, rice, soybeans and wheat they harvested in 2018.

The analysis builds on data shared during the launch of Farmers for a Sustainable Future (FSF), a coalition of agriculture groups aimed at educating lawmakers and finding solutions to challenges posed by climate change. The gains farmers have made in reducing their environmental footprint have been significant, and FSF supports federal investment in innovation, science-based research, voluntary conservation programs, resilient infrastructure, and incentives to assist farmers in furthering these efforts.

“Corn farmers are proud of their successful efforts to improve soil, water and air quality,” said Kevin Ross, president of the National Corn Growers Association, an FSF member. “These efforts are paying off in increased carbon sequestration and carbon retention in the soil, which helps offset agriculture’s relatively low contribution to U.S. greenhouse gas emissions.”

Read more from AFBF

AFBF, Ag group, corn, Environment, Farming, Sustainability

New York Biofuel Plant Supplies Ethanol for Sanitizer

Cindy Zimmerman

Western New York Energy (WNYE), New York’s only operational ethanol facility, is supplying corporations across the Northeast and Canada with ethanol to produce 80% antiseptic alcohol sanitizer amidst the COVID pandemic.

The plant is producing over 100,000 gallons a day of tech-grade ethanol for businesses that halted operations to meet the urgent sanitizer needs of hospitals and at-risk communities. WNY Energy generates over 60-million gallons of biofuel annually, using 20-million bushels of corn. The $90-million facility was the first biofuel company in the northeastern U.S.

“WNYE has also established a manufacturing and distribution network that will exponentially increase the production of antiseptic sanitizers made from our farmers’ corn. All the sanitizer and sanitizer products will be made in Western New York and the United States,” Tim Winters, WNYE President & CEO, said. “We could do none of this without support from farmers, our partners for the past 13 years. Corn ethanol is the key ingredient in making 80% antiseptic sanitizer. Farmers are as essential to WNYE’s operation as they are to America’s food supply – their contributions sustain this nation.”

Ethanol, Ethanol News