September U.S. Ethanol Exports Climb

Cindy Zimmerman

U.S. ethanol exports rose five percent in September, reaching 148.5 million gallons (mg), according to the latest Trade Monitor report from the Renewable Fuels Association.

Seventy percent of total ethanol exports went to just three major markets – Canada, the United Kingdom, and the European Union.

Canada retained its position as the top destination for the 42nd consecutive month, accounting for 44% of all U.S. ethanol exports. Exports to Canada rose 14% to a nine-month high of 64.9 mg, predominantly comprising denatured fuel. The United Kingdom, with U.S. ethanol shipments rising 25% to a two-month high of 21.1 mg, emerged as the largest market for undenatured fuel ethanol in September. Exports to the European Union continued an upward trajectory for the second consecutive month, surging 44% to a six-month peak of 18.3 mg. Other significant markets included Colombia (12.9 mg, up 30%), Mexico (6.9 mg, down 21%), Oman (6.0 mg, up 7%), India (5.6 mg, down 47%), and the Philippines (5.1 mg, a striking 380% increase). Notably, both Brazil and China were absent from the September export market. U.S. ethanol exports have reached a record 1.39 bg, marking a 37% increase compared to the same period last year.

U.S. exports of dried distillers grains (DDGS) were down 10% in September to a three-month low of 1.01 million metric tons (mt), reflecting mixed market conditions.

Mexico reclaimed its position as the largest market for U.S. DDGS, with exports up 9% to 178,206 mt. Exports to South Korea, while down 18%, remained substantial at 137,591 mt. Shipments to Turkey rose 2% to 119,542 mt, marking a six-month high, and exports to Vietnam surged 23% to a five-month high of 88,942 mt. Other notable markets included Indonesia (64,626 mt, down 9% to a 12-month low), Canada (53,102 mt, up 11%), the European Union (50,917 mt, down 52%), the United Kingdom (41,444 mt, up 78% to a 21-month high), Japan (30,464 mt, up 14%), and New Zealand (30,000 mt, up from zero).

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Grassley Addresses 45Z and Blenders Tax Credit

Cindy Zimmerman

Sen. Charles Grassley (R-IA) addressed whether farmers and biofuel producers might see rules for the 45Z tax credit before the end of the year, or if the blenders tax credit will be extended, during a call with reporters on Tuesday.

“45Z is not a subject of Congressional action, it’s a subject within the Treasury Department on the rules,” said Grassley. “Those of us in the Midwest are trying to influence Treasury that the rules should not penalize domestic producers to a disadvantage to imported feedstock.”

The 45Z clean fuel production tax credit is supposed to replace the $1 per gallon biodiesel and renewable diesel blenders tax credit, which is slated to expire at the end of this year and Grassley says an extension is already included in a package of tax credits. “It’s in with another whole bunch of maybe 20…tax credits that have to be passed and I expect them to be passed.”

That would mean the blenders tax credit would remain in place until rules for 45Z are complete.

Grassley press call 18:45

Audio, aviation biofuels, Biodiesel, Ethanol News, SAF

Veterans for Renewable Fuels Offers Holiday Fuel Discount

Cindy Zimmerman

Veterans around Olathe, Kansas will be able to fill up for less on Veterans Day thanks to a special promotion by Kansas Corn and Veterans for Renewable Fuels, an initiative of the Renewable Fuels Association.

All drivers, veterans or not, can fill up from 10 a.m. to noon Monday, Nov. 11, at the Casey’s at 13406 W 151st St. in Olathe, Kansas, for the special price of $2.15 per gallon for Unleaded88/E15 fuel and $0.85 per gallon for E85. As an additional benefit, veterans, active-duty service members and those serving in the reserves or National Guard will receive a $20 Casey’s gift card from event sponsors RFA and Kansas Corn, while supplies last. Veterans can also enjoy a free any size coffee or fountain drink from Casey’s, with proof of service. Exclusions may apply.

“We’re happy to be able to work with Kansas Corn and Casey’s to help drivers understand the value of lower-cost, lower-carbon ethanol while also honoring the men and women who help keep our country free,” said RFA Senior Vice President for Industry Relations and Market Development Robert White, himself an Army veteran. “The ethanol industry is proud of the many veterans who are a large part of our workforce, and partnering with corn growers and a terrific retailer like Casey’s really adds to the value of this event on such a holiday as Veterans Day.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Western Plains Energy Adds Whitefox ICE XL Solution

Cindy Zimmerman

In its effort to become a net-zero emissions producer, Kansas-based Western Plains Energy has upgraded their bioethanol facility with a fully integrated Whitefox® membrane solution.

According to Whitefox, this is the first installation in the United States of the new ICE® XL membrane solution, which will enable Western Plains to achieve 50% reduction in natural gas and steam, 25% increase in production capacity, and reduction in operational costs. Together, this allows Western Plains to reduce their carbon intensity score by more than ten percent.

Western Plains CEO Derek Peine said, “The Whitefox ICE® XL system is a fully integrated solution within our distillation, dehydration and evaporation (DD&E) unit operations. It fully replaces the molecular sieves, with a proprietary membrane system, providing continuous processing and reduced energy and water consumption. It is designed to allow us to reduce our steam usage by up to 50%, which is a big step towards our net zero carbon goal.”

Carbon, Ethanol, Ethanol News

USGC Shares Ethanol Benefits In Brazil

Cindy Zimmerman

U.S. Grains Council staff members traveled to São Paulo, Brazil last month for the BBEST–IEA Bioenergy 2024 Conference, with the goal of collaborating to find best solutions and techniques for responsible land use, biofuel uses in the transportation sector, agricultural productivity and more.

USGC Manager of Global Ethanol Policy and Sustainability Linda Schmid, Regional Ethanol Consultant Federico Salcedo and Ethanol Consultant Galo Galeana participated in event sessions and spoke with peer organizations about developing biofuels in emerging markets.

“Innovative technologies and climate smart practices enable U.S. farmers to sustainably produce bioethanol to supplement domestic production in emerging markets,” Schmid said. “By engaging with international stakeholders, policymakers and associations, the Council helps advance global biofuel adoption and increases demand for U.S. producers.”

Salcedo moderated a panel on grain and sugar-based biofuels and Schmid participated in the panel to speak about recent trends in ethanol consumption and applications.

Outside the general sessions, Schmid and Salcedo met with leading experts in the biofuels industry to explore collaborative opportunities for ethanol promotion, particularly regarding the upcoming United Nations Climate Change Conference (COP29) in Baku, Azerbaijan that Schmid will attend.

Brazil, Ethanol, Ethanol News, Exports, USGC

ZeaKal PhotoSeed is 1st Sustainability-Embedded Trait Tech

Cindy Zimmerman

ZeaKal today announced that PhotoSeed™ Soy has been validated as the first sustainability-embedded trait technology for agriculture, a technology that could expand the volume of sustainable aviation fuel (SAF) production by approximately one billion additional gallons on existing U.S. soybean acreage.

Han Chen, co-founder and CEO of ZeaKal, says they were able to validate PhotoSeed’s impact on the carbon intensity (CI) score of sustainable aviation fuel (SAF) from soybean oil by using well-respected analytic firm Foxley, LLC, which conducted an independent analysis according to multiple global standards and programs. “The data is also being reviewed by SCS Global Services, a leader in the field of sustainability standards and third-party certification,” said Chen. “The modelling shows that PhotoSeed can reduce SAF CI scores by up to 4.6 points.”

Chen says PhotoSeed enhances photosynthetic capacity, increasing soybean oil by 15% and protein by one point without compromising yield or requiring additional inputs. “At a time when the cost and scale for renewable fuels production still falls short of petrochemicals, we can leverage plant genetics to capture carbon and expand the volume of global oil production without needing new land or infrastructure. ZeaKal’s genetics and agricultural partnerships offer the energy industry economically feasible feedstocks with improved CI features in the production of SAF and other renewable fuels.”

Over the past several years, ZeaKal has built a harmonized supply chain for PhotoSeed soy, which includes Gro Alliance, Nutrien Ag Solutions, and Perdue AgriBusiness. The collaboration enables improved oil and protein production with improved sustainability features for the food and agriculture industry. With growing demand from energy, the initial three-million-acre East Coast footprint is an attractive source for low CI feedstock. PhotoSeed soybeans will be available for the 2026 growing season.

Chen adds that PhotoSeed’s verification as a technology pathway for reducing CI also opens opportunities across the company’s other crop programs, including corn and sugarcane. For ZeaKal’s key crop programs, the company forecasts that the global volume of SAF production could expand to 7.5 billion gallons per year.

Learn more in this interview with Chen:
ZeaKal CEO Han Chen 8:57

Audio, aviation biofuels, Biodiesel, biofuels, Ethanol, Ethanol News, SAF, Soybeans, sugarcane, Sustainability

USDA Announces $239 Million for Domestic Biofuels

Cindy Zimmerman

USDA this week announced the awarding of $39 million in grants to increase the availability of domestic biofuels in 18 states, and an allocation making $200 million available through the new Biobased Market Access and Development Grants from Commodity Credit Corporation (CCC) funds.

Deputy Secretary Xochitl Torres Small announced the awards and funding made possible through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Biobased Market Access and Development Program. “By increasing the supply of biofuels made here in the U.S., we are helping to lower costs for American families, strengthening our energy independence, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities.” Deputy Secretary Torres Small said.

Among the grants announced were nine Iowa fueling locations, which received nearly $3 million to offer consumers higher blends of biofuels like E15 and B20 across the state, according to the Iowa Renewable Fuels Association (IRFA).

“Consumers in Iowa come out winning when Iowa retailers choose to provide a homegrown, cleaner fuel option that leaves extra dollars in their pockets,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With Iowa’s cutting edge E15 Access Standard taking effect on January 1, 2026, there is plenty of time and resources to help Iowa retailers meet the deadline. The momentum for the USDA grants is rolling and USDA should not hit the brakes now. As congressional funding for HBIIP has run out, IRFA encourages the USDA to use discretionary funds to keep the grant awards going until Congress can refund HBIIP in the next Farm Bill.”

The other states receiving a share of grants were Arkansas, California, Florida, Illinois, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.

Some of the projects being funded include:
– Connor’s Service Station in Webster, Wisconsin, which will use a grant of more than $445,000 to install two E15 fuel dispensers, two B20 dispensers, one ethanol storage tank and one biodiesel storage tank. The project is expected to increase the amount of biofuel sold by nearly 224,000 gallons per year.
– Fleet Fueling of Michigan LLC will use a $4.2 million grant to install 16 E15 fuel dispensers, 16 E85 dispensers, 30 B20 dispensers, seven ethanol storage tanks and 14 biodiesel storage tanks at seven fueling stations in Eaton, Ingham and Clinton counties. The company expects that the project will increase the amount of biodiesel sold by 2.5 million gallons per year.
– NUVU Fuels Florida LLC will use a $150,000 grant to install four E85 dispensers and four E15 dispensers at a fueling station in Sarasota. Through this project, the company expects to increase the amount of ethanol sold by nearly 178,000 gallons per year.

USDA will use previously transferred CCC funds to create the Biobased Product Market Development and Access Grant Program to support innovative biobased technologies and bridge the gap between pilot-scale demonstrations and commercial viability. The funding will be available to applicants who have been accepted into the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program (Section 9003), which is administered by Rural Development. The $200 million program is being funded through the reallocation of unobligated CCC funds from 2020.

Biodiesel, biofuels, E15, E85, Ethanol, Ethanol News, USDA

Apply Now for National Ethanol Conference Scholarships

Cindy Zimmerman

Applications are now being accepted by the Renewable Fuels Foundation for scholarships to attend the annual National Ethanol Conference, taking place Feb. 17-19 in Nashville, Tenn. College students and members of RFA’s Young Professionals Network are eligible for the scholarships that cover the convention registration fee, hotel, and up to $500 in airfare.

Now in its 16th year, the program is named in honor of Robert “Bob” Sather, an educator who helped found RFA member company Ace Ethanol in Wisconsin. Sather was a past Chair of the Renewable Fuels Foundation. The aim of the Bob Sather Memorial Scholarship is to reach young adults aspiring to a career related to ethanol and open doors and present new perspectives on ethanol’s place in our world today and beyond. The program provides eligible applicants with opportunities to hear from, and engage with, top industry leaders, policymakers, and academic and technical experts.

“We’re happy to be able to again provide scholarships to help introduce a new generation to the ethanol industry via time spent at the country’s top ethanol industry event,” said Neal Kemmet, chairman of the Renewable Fuels Foundation and president and general manager for Ace Ethanol. “Students and young professionals will have an excellent opportunity to learn and network as they prepare for meaningful careers tied to renewable fuels. We strongly recommend this program to any student studying in ethanol-related fields, and to any young professional in the industry.”

A limited number of scholarships will be awarded. Interested college students are asked to submit a 500-word essay explaining how their attendance at the NEC will help them achieve future goals. They should also submit a letter of recommendation and an up-to-date resume. Interested members of YPN need to complete the application questions and provide a resume and letter of recommendation from a supervisor or someone else familiar with their qualifications. YPN scholarships are limited to one per company.

Click here for complete application details and to apply. Applications are due January 9.

Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

CoBank Report Studies Future for SAF

Cindy Zimmerman

CoBank image

A new CoBank Knowledge Exchange report on Charting the Path Forward for SAF finds sustainable aviation fuel provides great opportunity for growth in U.S. biofuels production from agricultural feedstocks, as long as the market and regulatory incentives are there for farmers and the wider biofuels industry.

According to the report, the anticipated guidance for the 45Z tax credit, also known as the Clean Fuel Production Credit, will be the major determining factor for the extent of agriculture’s role in SAF production, replacing the 40B tax credit for SAF production.

“The 40B tax credit guidance for SAF fell short in effectively incentivizing farmers to adopt the prescribed set of on-farm conservation practices required to be eligible for the credit,” said Jacqui Fatka, farm supply and biofuels economist with CoBank. “Farmers are hoping the new guidance offers more flexibility to employ practices that are applicable to their individual operations. The 40B guidance reflected a one-size-fits-all approach, which is certainly not the case for farms spanning the entire country.”

While the 45Z tax credit is set to take effect on Jan. 1, 2025, the final guidance has yet to be issued causing uncertainty for farmers, biofuel producers and other market participants. “Biofuel producers are unlikely to move forward on any expansion plans until the new guidance is published,” said Fatka. “And the delay creates more uncertainty for farmers as they make decisions about planting, input purchases and conservation programs for 2025.”

Read the report.

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF

California Governor Puts E15 in the Fast Lane

Cindy Zimmerman

California Governor Gavin Newsom on Friday gave a surprise boost to the ethanol industry by issuing a directive to the California Air Resources Board (CARB) to accelerate studying how California could increase ethanol blending in gasoline to allow the sales of E15.

“There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump,” said Newsom.

The Renewable Fuels Association immediately praised Gov. Newsom for taking this action since California is the only state in the country that bans the sale of lower-cost, lower-carbon E15. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump,” said RFA President and CEO Geoff Cooper. “Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.”

Gov. Newson cited a recent study conducted by the University of California, Berkeley and the United States Naval Academy, showing that just allowing the sale of E15 could lower gas prices in California by up to $0.20 per gallon and save Californians as much as $2.7 billion annually. That study was sponsored by the Renewable Fuel Association. “Consumers would save about $200 per household there,” said RFA Chief Economist Scott Richman who contributed to the study. “And it would be low income households that would benefit the most from this.”

Listen to an interview with Richman about the study:
RFA Chief Economist Scott Richman 6:38

Audio, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA