Bipartisan Bill to Expand Biofuels Infrastructure Introduced

Cindy Zimmerman

Congresswoman Abby Finkenauer (D-IA) on Tuesday introduced bipartisan legislation, co-sponsored by Reps. Angie Craig (D-MN), Don Bacon (R-NE), and Roger Marshall (R-KS), that would provide funding for installing and converting fuel pump infrastructure to deliver higher blends of ethanol and biodiesel.

The Clean Fuels Deployment Act of 2020 “authorizes $600 million over six years to help retailers offer higher ethanol blends, expand the geographic area selling ethanol blends, support biodiesel, bioheat, and sustainable aviation fuel markets, and accelerate the deployment of fueling infrastructure.”

National Corn Growers Association (NCGA) President Kevin Ross says, “Expanding infrastructure for higher blends will help to increase future demand for farmers and ensure biofuels will continue to be included in federal efforts to provide consumers with cleaner, affordable fuels.”

A vital market for corn farmers, ethanol producers have idled nearly half of their production capacity due to the fallout from COVID-19. Spurring new demand for higher ethanol blends will be an important part of an economic recovery for the ethanol industry and farmers, and this infrastructure deployment will help support that growth.

The legislation would also be a boost for biodiesel, according to Grant Kimberley, executive director of the Iowa Biodiesel Board and Iowa Soybean Association director of market development. “The greatest remaining barriers to widespread biodiesel adoption are at the terminal and pipeline terminal level. We support incentivizing terminals and taking other steps to help increase the market penetration of this greenhouse gas-reducing fuel,” said Kimberly.

Biodiesel, Ethanol, Ethanol News

ACE Asks Administration to Help Ethanol Producers

Cindy Zimmerman

American Coalition for Ethanol (ACE) CEO Brian Jennings is asking President Trump to “provide a much-needed boost to ethanol producers and rural America in response to the mounting economic harm as a result of the sudden and severe drop in ethanol demand” due to the COVID-19 pandemic.

“More than half of U.S. ethanol production capacity is already offline, high-skill jobs are being shed, livestock and food processing customers are facing supply disruptions, and our members’ working capital is vanishing. Ethanol use could fall by more than 3 billion gallons in 2020, eliminating the market for at least a billion bushels of U.S. corn,” Jennings wrote in the letter. “As you did on April 21, when you directed the Secretaries of Energy and Treasury to formulate a plan to provide funds to the oil and gas industry, we urge similar action for our sector.”

Jennings says one action the administration could take would be having EPA use existing statutory authority to ensure the 20.09 billion gallons of renewable fuel required by the Renewable Fuel Standard — and promised by EPA this year — will be consumed.

ACE also encourages industry advocates to join in requesting the Administration quickly establish a plan to aid ethanol producers struggling to survive the catastrophic economic fallout of COVID-19 by utilizing its Action Center.

ACE, Ethanol, Ethanol News

2020 FEW Rescheduled for August

Cindy Zimmerman

The 2020 International Fuel Ethanol Workshop & Expo, has been moved due to the outbreak of COVID-19. Originally scheduled for mid-June in Minneapolis, the FEW is now rescheduled to take place August 24th through August 26th, 2020 in Omaha, Nebraska.

“Based on the most current information available, and with the best interests of our members, exhibitors, attendees and the global community in mind, BBI International’s leadership team has made the difficult but necessary decision to reschedule the 2020 FEW,” said Tom Bryan, president at BBI International. “Recognizing the importance of this event to your organizations, our industry, and all companies connected with producing the FEW, we are now shifting the dates to a more suitable timeframe based on the availability of locations provided to us. The 2020 International Fuel Ethanol Workshop & Expo will now be taking place August 24th through August 26th, 2020 in Omaha, Nebraska.”

BBI International also announced that all biofuels producers will be allowed to attend free of charge. “Previously, free registration was limited to two ethanol producers per facility,” said Joe Bryan, CEO of BBI International. “However, due to the state of events that have taken place this year, we are allowing free registration to all producers who work at ethanol facilities. No longer will we be limiting it to only two per facility.”

Ethanol, Ethanol News, FEW

RFA Earns TRANSCAER Award for 8th Year in a Row

Cindy Zimmerman

The Renewable Fuels Association has received the TRANSCAER National Achievement Award for the eighth year in a row.

In 2019, RFA held 27 ethanol safety seminars in 10 locations, four Train-the-Trainer webinars and an online ethanol safety training initiative, which trained emergency responders on how to properly respond to an ethanol incident. Collectively, these events trained nearly 900 individuals last year.

TRANSCAER stands for Transportation Community Awareness Emergency Response and members include volunteer representatives from the chemical manufacturing, transportation, distribution, hazardous material storage and handling, emergency response and preparedness, and government.

RFA’s Missy Ruff was chosen last year to chair the National TRANSCAER Task Group, the managing body for initiatives undertaken by the organization. For more information on ethanol safety events, visit www.ethanolresponse.com.

Ethanol, Ethanol News, RFA, safety

ADM Idles Plants in Iowa and Nebraska

Cindy Zimmerman

ADM announced Friday that ethanol production is being idled at the company’s corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska, which means furloughs for about 90 employees at each facility in the coming weeks.

During the furlough, employees will continue to receive medical benefits and will be eligible to apply for state and federal unemployment benefits. They will also have the option to apply for other open positions at ADM. The anticipated length of the furlough is currently four months, but the time frame is dependent on market conditions and could change.

ADM has also reduced the ethanol grind at its corn wet mill plants and rebalanced grind to produce more industrial alcohol for the sanitizer market and industrial starches for the container board market to better align production with current demand.

The two plants account for over 575 million gallons of ethanol capacity per year. This adds to the 70 plants and 6.2 billion gallons of nation’s ethanol production capacity that was already sidelined according to a Renewable Fuels Association analysis just a week ago.

Ethanol, Ethanol News, RFA

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