ACE Calls on EPA to Maintain RFS

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is urging the Environmental Protection Agency to resist calls for to waive or significantly reduce the Renewable Fuel Standard (RFS) Renewable Volume Obligations (RVOs).

“None of the requests from governors, senators, and attorneys general for EPA to waive the RFS this year have been accompanied by the evidence, which is required by the law and previous precedent, showing how the RFS is the cause of ‘severe economic harm’ because such evidence does not exist,” said ACE CEO Brian Jennings. “More importantly, oil refiners and the politicians beholden to them who keep calling on EPA to reduce RFS blending obligations for 2020 due to the coronavirus pandemic are disingenuously ignoring the fact that ethanol blending is already falling below statutorily-required levels this year with no action by EPA because COVID-19 has cut U.S. motor fuel use by approximately 50 percent in recent months. If EPA were to cave in to requests for an unjustifiable RFS waiver, it would amount to a dual cut to renewable fuel use, giving refiners further license to escape their legal responsibility to blend and inflicting gratuitous pain on ethanol producers and farmers.”

During an appearance before a Senate committee last week, EPA Administrator Andrew Wheeler said no decision has been made on recent waiver requests to the Renewable Fuel Standard.

ACE, EPA, Ethanol, Ethanol News

Illinois Zein Protein Plant Switches to Hand Sanitizer

Cindy Zimmerman

Global Impact Innovation (GII) has switched from producing Zein protein to producing and delivering hand sanitizer at mass-scale in response to the COVID-19 pandemic. Zein protein from corn has a variety of industrial and food uses.

Since beginning production in mid-April 2020, GII has manufactured and delivered close to 100,000 gallons of sanitizer with a significant portion of its early product donated to hospitals, frontline workers, and vulnerable institutions such as homeless shelters. OSF Saint Luke Medical Center, Los Angeles homeless shelters and other local communities in Henry County, Illinois were among the first recipients of GII’s donation effort.

The production facility, based on the campus of the Big River Resources ethanol plant in Galva, Illinois, was designed to produce Zein protein from corn to address global challenges, such as plastic pollution on land and in oceans. When the COVID-19 pandemic hit the U.S., the shortage of basic self-care products such as sanitizers became clear, as did the country’s reliance on the halted global supply chain for replacement products. True to its mission of innovating for positive human impact, GII immediately took that as a duty call and jumped to repurpose the Galva plant to produce ethanol-based sanitizers on a large scale in order to make it available across the United States at an affordable price. It has just completed the additional upgrades to produce 150,000 gallons of sanitizer per week and continue to scale.

GII intends to continue selling hand sanitizer in large quantities and at an affordable price to municipalities, educational institutions, manufacturing plants, and more. GII has scaled its delivery containers from its original 55-gallon drums to now include 275-gallon totes and truck tankers.

Ethanol, Ethanol News

USDA Food Safety Using Nebraska-made Sanitizer

Cindy Zimmerman

Nearly 7,000 gallons of Nebraska-made sanitizer has been donated for use by USDA Food Safety Inspection Service (FSIS) employees around the country responsible for ensuring the safety of meat, poultry, and egg products. There are 6,500 FSIS field offices across the nation.

The USDA’s initial request included 6,500 gallons of hand sanitizer but deliveries have continued as the need remains – now totaling 6,700 gallons. An additional 6,500 gallons is planned to also be donated, mostly from a very generous donation of food grade (FCC) alcohol from Green Plains Inc., which has donated 81,000 gallons of FCC grade alcohol since the temporary hand sanitizer production facility began in early April. The project was spearheaded by the Nebraska Ethanol Board (NEB).

“Green Plains and our employees remain committed to providing high quality, FDA approved, FCC grade alcohol for the use in production of hand sanitizer,” said Todd Becker, president and CEO of Green Plains. “We are happy to be able to fill a need for the USDA Food Safety Inspection Service employees, as they work hard to keep America’s food supply chain safe.”

Other organizations, including BASF, Cargill, Johnson Matthey, Lee Containers, Phillips 66 Co., the State of Nebraska, and Syngenta have also contributed. The hand sanitizer production facility has a home in the parking lot of Nebraska Innovation Campus’ (NIC) Food Processing Center (FPC). Volunteers have mixed more than 60,000 gallons of hand sanitizer – all from donated raw materials – since the operation began April 5. Production will continue as long as resources allow. So far, every single gallon of product has been provided to these organizations at no cost. For more information about the project, visit handsanitizer.unl.edu.

Ethanol, Ethanol News

Senate Bill Would Help Biofuels Producers

Cindy Zimmerman

Sens. Chuck Grassley (R-IA) and Amy Klobuchar (D-MI) have introduced bipartisan legislation to provide emergency relief to ethanol producers impacted by the COVID-19 pandemic. The bill would allow USDA to reimburse biofuel producers through the Commodity Credit Corporation for their feedstock purchases in the first quarter of this year.

According to the Renewable Fuels Association (RFA), as of May 19, only 60 of the nation’s 204 ethanol plants were running at normal output rates, with the remaining 144 either completely or partially idled. More than 40 percent of the county’s ethanol production capacity remains offline.

“The COVID-19 pandemic has had devastating effects on the U.S. ethanol industry,” RFA President and CEO Geoff Cooper said. “Tens of thousands of good jobs in rural communities are in jeopardy as fuel demand has plummeted and scores of ethanol plants have been forced to shut down. Fortunately, Sens. Grassley and Klobuchar are watching out for the 350,000 men and women whose jobs are supported by the ethanol industry. The legislation they introduced today would lend a vital helping hand and assist renewable fuel producers as they attempt to get back on their feet. We thank Sens. Grassley and Klobuchar for their support and dedication, and we look forward to the inclusion and expeditious passage of emergency relief measures for the ethanol industry in the next COVID-19 stimulus package.”

Last week, the House passed the HEROES Act, which includes the Renewable Fuel Reimbursement Program, that would provide direct assistance to renewable fuel producers impacted by the COVID-19 pandemic.

Ethanol, Ethanol News, RFA

ACE to Co-Locate Annual Meeting with Fuel Ethanol Workshop

Cindy Zimmerman

The American Coalition for Ethanol (ACE) will be co-locating its 33rd annual conference this year in conjunction with the rescheduled International Fuel Ethanol Workshop (FEW) & Expo on August 25, in Omaha, Nebraska.

Due to the outbreak of COVID-19 and the economic hardship it’s brought to bear on the ethanol industry, ACE believes hosting this year’s gathering in association with another industry event is in the best interest of its members. The conference theme of “Rising Up” embodies the resilience demonstrated by the ethanol industry in response to the pandemic and the grit to recover stronger than before.

“ACE is looking forward to returning to Omaha and offering our conference attendees the opportunity to expand upon the content and connections they’re able to obtain in one place through this year’s partnership with BBI,” said Brian Jennings, ACE CEO. “While 2020 may go down as a historic low point for the ethanol industry, ACE members are showing their grit and resilience by continuing to power the economic engine that is the ethanol industry. Join us in ‘rising up’ and moving forward August 25 in Omaha.”

ACE conference attendees will be able to freely attend sessions at the FEW and Biodiesel Production Technology Summit. In an unprecedented move, event owner and operator BBI International is providing unlimited free passes for producers of ethanol and biomass-based diesel to attend the FEW. Registration details are available via the fuelethanolworkshop.com. Stay tuned for more agenda details in the upcoming weeks.

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

RFA Hosting Webinars on USDA Retailer Infrastructure Grants

Cindy Zimmerman

USDA began accepting applications Friday for grants from the new Higher Ethanol Blends Infrastructure Program, or HBIIP, and the Renewable Fuels Association is hosting two webinars this month to guide fuel retailers and others in the process.

“U.S. ethanol producers today are facing the worst economic conditions in the industry’s 40-year history due to COVID-19; once the pandemic is over and fuel markets are showing signs of recovery, expanding infrastructure via the Higher Blends Infrastructure Incentive Program will be important to the long-term future of the ethanol industry and rural America,” said RFA President and CEO Geoff Cooper. “We want to do all we can to make sure retailers and other have the information they need to participate in this important program, and we thank the USDA for its efforts to support the future of renewable fuels.”

The RFA-USDA webinars will be held at 2 p.m. CDT on Friday, May 22, and Thursday, May 28, and cover the same information. They will last for approximately 45 minutes.

WEBINAR 1: Friday, May 22. Register for Webinar 1 here

WEBINAR 2: Thursday, May 28. Register for Webinar 2 here.

For additional information about HBIIP, visit EthanolRFA.org/HBIIP.

USDA’s Higher Ethanol Blends Infrastructure Program is a $100 million grant program designed to expand the availability and sale of higher blends of ethanol like E15 and E85, as well as other renewable fuel blends. Approximately $86 million of the $100 million will be made available to transportation fueling facilities including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities. USDA began accepting applications for funding for the HBIIP program on May 15, and electronic applications must be submitted by 11:59 p.m. EDT Aug. 13, 2020. USDA expects to announce awards mid-September 2020.

Ethanol, Ethanol News, Retailers, RFA, USDA

Ethanol Report 5-15-20

Cindy Zimmerman

The COVID-19 pandemic continues to have a devastating impact on the U.S. ethanol industry, slashing production by half and leading to the idling of scores of plants across rural America. But there are positive signs that demand is starting to increase again. Meanwhile, Congress is considering a new aid package with help for biofuels, the Renewable Fuel Standard is facing new threats, and the ethanol industry is becoming an important supplier of alcohol for hand sanitizer, even as FDA makes understanding the rules a challenge.

In this edition of “The Ethanol Report” podcast, Renewable Fuels Association (RFA) President and CEO Geoff Cooper provides an update on these issues, framed by new national polling results that indicate continued strong support for renewable fuels. We also hear from RFA Chairman and Pacific Ethanol CEO Neil Koehler, and Western New York Energy CEO Tim Winters about how they are surviving during the crisis.

Ethanol Report 5-15-20 (21:39)

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, Renewable Fuels Association, RFA

Higher Blends Infrastructure Program Grant Applications Open

Cindy Zimmerman

The U.S. Department of Agriculture has launched an online portal to accept applications for Higher Blends Infrastructure Incentive Program (HBIIP) grants.

USDA has up to $100 million in competitive grants available to help expand the sale and availability of ethanol and biodiesel fuels with approximately $86 million allocated for higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel.

Those eligible for the grant program include vehicle fueling facilities, such as local stations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

The grants are available for up to 50 percent of total eligible project costs, but not more than $5 million.

USDA plans to make funds directly available to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure.

Electronic applications must be submitted by Aug. 13, 2020, at 11:59 p.m. Eastern Daylight Time. Paper applications will not be accepted.

For details, visit the Higher Blends Infrastructure Incentive Program web page.

Biodiesel, biofuels, Ethanol, Ethanol News, USDA

RFA CEO Says Worst May be Over for Ethanol Industry

Cindy Zimmerman

The COVID-19 pandemic has continued to have a devastating impact on the U.S. ethanol industry, slashing production by half and leading to the idling of scores of plants across rural America. However, the industry may be finally turning the corner, according to Renewable Fuels Association (RFA) President and CEO Geoff Cooper.

“We are starting to see some ethanol plants come back on line…last week we saw the highest rate of output that we’ve seen in five weeks,” said Cooper during a media call Friday. “So it does seem like we are starting to see a light at the end of the tunnel, but we still have a very long way to go to climb out of the hole that COVID-19 put us in.”

Meanwhile, Congress is considering its newest aid package which includes help for ethanol producers, the Renewable Fuel Standard is facing new threats, and the ethanol industry is becoming an important supplier of alcohol for hand sanitizer. Cooper comments on all of that and also shares some new national polling results that indicate continued strong support for renewable fuels.

Cooper was joined on the call by two ethanol producers:
Neil Koehler, Chairman, RFA; Co-Founder and CEO of Pacific Ethanol
Tim Winters, President and CEO of Western New York Energy

Opening remarks –
RFA 5-15 update on COVID-19 impact remarks

Q and A –
RFA 5-15 update on COVID-19 impact questions

Audio, Ethanol, Ethanol News, RFA

Ethanol Production Continues Slow Recovery

Cindy Zimmerman

Gasoline use is increasing as more cars gradually get back on the road with coronavirus restrictions easing in many states, which is helping ethanol production slowly increase.

According to the latest EIA data analyzed by the Renewable Fuels Association for the week ending May 8, ethanol production expanded by 3.2%, to 617,000 barrels per day — equivalent to 25.91 million gallons daily and a five-week high. However, production remains tempered due to COVID-19 disruptions, so that is still 41.3% below the same week in 2019. The four-week average ethanol production rate bounced 2.1% higher to 579,000 b/d, equivalent to an annualized rate of 8.88 billion gallons.

Ethanol stocks tightened by 5.6% to 24.2 million barrels, the lowest volume since March 20.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, jumped 11.0% to 7.398 million b/d (113.41 bg annualized) yet was 19.1% lower than a year ago.

Refiner/blender net inputs of ethanol followed, up 11.9% to 666,000 b/d, equivalent to 10.21 bg annualized but 30.1% below the year-earlier level. While implied gasoline demand has rebounded by 46.1% from the low experienced during the week ended April 3, refiner and blender net inputs of ethanol have been slower to recover, up 32.7%.

Ethanol, Ethanol News, RFA