Ethanol Report 7-31-20

Cindy Zimmerman

Ethanol exports have taken a hit this year due to the pandemic, but there are still reasons to be optimistic about this important market for the industry. In this episode of The Ethanol Report, we hear from Renewable Fuels Association (RFA) General Counsel Ed Hubbard, who doubles as the organizations international trade expert.

We also learn about a new program geared toward young professionals in the ethanol industry 39 years old and younger from RFA Manager of Member Relations Jackie Pohlman.

Finally, we get an update from RFA CEO Geoff Cooper on where the Senate is on getting a coronavirus relief package that includes ethanol producers.

Ethanol Report 7-31-20 (24:06)

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.

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Audio, Ethanol, Ethanol News, Ethanol Report, Exports, RFA

RFA Launches Young Professionals Network

Cindy Zimmerman

To meet the needs of an evolving workforce in the ethanol industry, the Renewable Fuels Association (RFA) has launched the Young Professionals Network (YPN), a new program geared toward members of the ethanol industry and stakeholder industries who are 39 years old and younger.

The YPN is designed to bring together innovative and dedicated young professionals to build new relationships and work with one another to identify new opportunities that grow and strengthen the renewable fuels industry. In order to foster this new approach, the RFA YPN will host events year-round that focus on networking, leadership, improving operations, and finding new and innovative approaches to building the market for ethanol.

“As we visited plants across the country and hosted industry meetings, we’ve met many smart and innovative young people with a deep interest in renewable fuels,” said RFA President and CEO Geoff Cooper. “Our association wants to help the industry cultivate, develop, and retain the best and brightest young leaders in the business. Providing a forum for them to come together and collaborate on personal, professional and industry development will help them, their employers, and our industry succeed.”

Those who wish to learn more about the Young Professionals Network can go to EthanolRFA.org/YPN for more information.

Listen to an interview with RFA’s Manager of Member Relations, Jackie Pohlman, who is leading the initiative.
Interview with Jackie Pohlman, RFA

Audio, Ethanol, Ethanol News, RFA

Biofuels Vision 2020 Launches Ad Campaign

Cindy Zimmerman

Biofuels Vision 2020 launched a new ad campaign in Iowa this week expressing concern about the Trump administration’s track record on biofuels, which has become a major focus of debate in key Midwest political races.

Display and social media ads will run over the next three weeks, highlighting that “rural America is under siege by Trump’s EPA” and calling on the president to keep his promises to Iowa corn and soybean farmers.

“Rural communities face historic economic hardship in the wake of COVID-19, trade wars, and years of regulatory abuse,” said Biofuels Vision 2020 member Daryl Haack, a corn farmer in Primghar, Iowa and member of the board of Little Sioux Corn Processors. “We are not going to sit idly by and watch the Trump EPA sabotage the very foundation of our rural recovery. Iowans can’t afford to pay the price for any more backdoor handouts to well-connected oil companies.”

Biofuels Vision 2020 is a coalition of organizations and individuals committed to educating candidates in both parties about the production and use of renewable fuels in the United States.

Biodiesel, biofuels, Ethanol, Ethanol News

ACE Seeks More Specific Aid for Ethanol

Cindy Zimmerman

The Senate Republicans coronavirus economic relief package unveiled this week includes $20 billion in relief to be used by USDA in addition to the $14 billion in funding the previously enacted CARES Act, which marks the next step toward supplying much needed assistance to the renewable fuels sector. While American Coalition for Ethanol (ACE) CEO Brian Jennings believes ethanol producers are considered to be “processors” described in the legislation, he urged more specific language.

“We are grateful Senate leaders have responded to our request for economic relief to biofuel producers in the phase four stimulus, however, Congress gave USDA the flexibility to provide relief for renewable fuel producers in the last package and USDA declined to exercise it. While Senator McConnell’s bill is more specific about processors of ag commodities, it still leaves discretion to USDA which has so far failed to use the authority to support our industry,” said Jennings.

ACE supports inclusion of the Grassley-Klobuchar bill which makes direct assistance certain. “We will continue to urge for more specific language in the final bill,” said Jennings. Fortunately, momentum appears to be in our favor since both the House-passed Heroes Act and Senate proposal contain relief provisions. “Now we need to ensure the legislative details are correct as there should be no reason direct assistance for ethanol producers doesn’t make it in the final phase four bill.”

ACE, Ethanol, Ethanol News

Senator Wants E15 Available Everywhere

Cindy Zimmerman

Senator Joni Ernst (R-IA) is urging Environmental Protection Agency (EPA) Administrator Andrew Wheeler to certify biofuel infrastructure for E15 and remove unnecessary labeling to increase consumer access to E15.

In a letter to Administrator Wheeler, Ernst wrote, “Two years ago, I worked successfully with you and President Trump to get E15 sold year-round. One year later, we sat in the Oval Office and created an agreement to further strengthen the Renewable Fuel Standard (RFS) by investing in biofuel infrastructure including streamlining labeling and removing other barriers to the sale of E15. The COVID-19 pandemic has caused a great loss of demand for biofuels. You must act now to initiate a rulemaking process and follow through on this agreement to provide certainty to our Iowa farmers.”

Ernst continues: “Consumers have now driven more than 15 billion miles on E15, retailers have had millions of transactions, and it has been sold for nearly a decade (since 2011), all without a single reported issue. It makes little sense why the black and orange warning label cannot be addressed immediately.”

Meanwhile, the coronavirus relief package unveiled by Senate Republicans this week would give the USDA broad authority to spend an additional 20 billion dollars to assist ag producers and processors but does not mention the biofuels industry specifically.

E15, EPA, Ethanol, Ethanol News

ACE Urges Senate to Include Ethanol in Relief Bill

Cindy Zimmerman

American Coalition for Ethanol (ACE) CEO Brian Jennings is urging Senate leaders to adopt legislation introduced by Senators Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) in May that would reimburse biofuel producers for a share of feedstocks they purchased and processed into renewable fuel during the first quarter of the year, and making the case to include the plan for direct aid in the next coronavirus aid package.

In a letter to Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Chuck Schumer (D-NY), Jennings emphasized the direct hit ethanol producers have taken as a result of COVID-19 restrictions and said the Grassley-Klobuchar bill would establish the Renewable Fuel Feedstock Reimbursement Program to aid in the recovery. “Ethanol use declined by 50 percent because of the social distancing, stay-at-home, and shelter-in-place orders instituted across the country to fight COVID-19, a catastrophic and unprecedented demand shock for domestic biofuel producers. Ethanol usage remains well-below pre-COVID levels and is not expected to recover through 2021.”

The need to provide emergency relief to biofuel producers was underscored in the letter by referencing the House of Representatives inclusion of a direct compensation program like the Grassley-Klobuchar bill in its stimulus package announced May 15.

ACE, Ethanol, Ethanol News

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