Growth Energy Announces New Chairman

Cindy Zimmerman

Growth Energy has announced the election of Dan Sanders as new chairman of the board of directors, succeeding POET CEO Jeff Broin, who held the position since the association was formed in 2008.

Sanders is vice president of Front Range Energy, a 48 million gallon ethanol production facility located in Windsor, Colorado.

“I’m honored to serve our members and staff as the next chairman of the Growth Energy Board of Directors,” said Sanders. “I look forward to working with our dedicated board to lead our association’s strategies to deliver strong demand for our products and supportive policy.”

Broin announced in September he would step down as chairman, but plans to remain an active member of the Growth Energy board.

Ethanol, Growth Energy

Global Ethanol Summit Kicks Off in DC

Cindy Zimmerman

The first Global Ethanol Summit gets underway this morning in Washington D.C. with industry and government officials from 60 countries are meeting with U.S. officials to learn about prospects for expanded global ethanol use.

This week’s Summit, sponsored by the Council, Growth Energy and the Renewable Fuels Association (RFA), features high-level government and industry officials from Algeria to Vietnam, who are working together to expand the global use of ethanol by developing policies with a role for trade.

Building on the success and momentum of 2017’s Ethanol Summit of the Americas and 2018’s Ethanol Summit of the Asia Pacific events, the Global Summit seeks to capitalize on potential markets around the world as demand increases for higher-level biofuels policies – including decreasing greenhouse gas (GHG) emissions and improving clean air quality. The Council and its partners are working in all of these countries to highlight ethanol’s benefits and address constraints to expanding ethanol’s use.

The two-day conference will feature remarks from both the U.S. Department of Agriculture’s (USDA’s) Deputy Secretary Stephen Censky and Foreign Agricultural Service’s Associate Administrator Daniel Whitley, who will speak on collaboration and trade and the U.S. energy renaissance, respectively.

Ethanol, Ethanol News, Events, Exports, Grains, Growth Energy, RFA, USGC

Ethanol Production Rate Continues to Slow

Cindy Zimmerman

Ethanol production started this month below one million barrels per day for the third week in a row.

According to EIA data analyzed by the Renewable Fuels Association for the week ending Oct. 4, ethanol production expanded 5,000 b/d or 0.5% to 963,000 barrels per day (b/d)—equivalent to 40.45 million gallons daily. This was the third straight week in which production was below 1 million b/d, and output was 7.4% lower than a year ago. The four-week average ethanol production rate slowed for the sixth week, declining 1.5% to 967,000 b/d, equivalent to an annualized rate of 14.82 billion gallons and the lowest average since June 2016.

In addition, ethanol stocks plummeted 8.6% to 21.2 million barrels, the largest weekly draw on record, and inventories were the smallest since Sept. 2017.

Ethanol, Ethanol News, RFA

USDA Lowers Corn Use for Ethanol Outlook Again

Cindy Zimmerman

The October World Agricultural Supply and Demand Estimates out today from USDA once again lowered its 2019-20 outlook for U.S. corn production, exports, use for ethanol, and ending stocks.

Corn production is forecast at 13.779 billion bushels, down 20 million as a decline in harvested area more than offsets an increased yield forecast. Corn supplies are forecast down sharply from last month on a reduced crop and lower beginning stocks based on the September 30 Grain Stocks report. Exports are reduced 150 million bushels reflecting smaller supplies and U.S. price competitiveness. Corn used for ethanol is down 50 million bushels based on weekly production data as reported by the Energy Information Administration during September.

Projected feed and residual use is up 125 million bushels based on indicated disappearance during 2018/19. Corn ending stocks for 2019/20 are lowered 261 million bushels. The season-average corn price received by producers is raised 20 cents to $3.80 per bushel.

corn, Ethanol, Ethanol News, USDA

Ethanol Report on RFS Moving Forward

Cindy Zimmerman

It was a year ago this week that President Trump announced he was instructing the Environmental Protection Agency (EPA) to initiate a rulemaking process that would allow E15 to be sold year round. This year, it was proposed relief from small refinery exemptions announced last week to restore integrity to the RFS that is giving the ethanol industry renewed energy going forward.

In this edition of the Ethanol Report, Geoff Cooper comments on the administration plan and reflects on his first year as President and CEO of the Renewable Fuels Association (RFA).

Ethanol Report on RFS Moving Forward

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Poll Shows Strong Support for RFS and Biodiesel

Cindy Zimmerman

An annual national poll of registered voters released by the National Biodiesel Board (NBB) indicates that a candidate’s support for policies to promote clean energy, including biodiesel and renewable diesel use, can influence voters.

The annual poll, which is designed to measure awareness of and attitudes toward biodiesel and federal policies that support the industry, found a strong majority of the polled registered voters (81%) indicated that a candidate’s position on renewable fuels is important, 86% of respondents said a candidate’s position on clean energy is important or very important to their voting preferences, and 85% agreed that it is important that President Donald Trump keep his promises on the RFS.

Among the respondents, nearly three-quarters (73%) had previously heard some information about biodiesel. More than half (57%) of all respondents agreed that federal policy should encourage use of biodiesel and renewable diesel. When asked if federal policy should support petroleum, 45% said “no,” while only 34% said “yes.”

Nearly four of every five respondents expressed support for existing federal programs that encourage increased production and use of advanced biofuels. Seventy-eight percent (78%) of respondents support the federal tax incentive for biodiesel, and 79% support the Renewable Fuel Standard. Additionally, 79% of respondents would encourage local communities and governments to promote use of biodiesel.

NBB Vice President of Federal Affairs Kurt Kovarik says President Trump’s commitment to expand use of biofuels and uphold the Renewable Fuel Standard is clearly important to voters. Listen to an interview with Kovarik about the biodiesel industry’s reaction to the biofuels plan released by the administration last week.

Interview with NBB VP Kurt Kovarik on administration biofuels plan (6:48)

Audio, Biodiesel, NBB, RFS

Registration Open for 25th National Ethanol Conference

Cindy Zimmerman

Registration is now open for the Renewable Fuels Association’s (RFA) 25th annual National Ethanol Conference (NEC), to be held Feb. 10-12, 2020, in Houston.

RFA Board Chairman Neil Koehler, co-founder and CEO of Pacific Ethanol, says the theme “Focus Forward” will look ahead to what the next quarter-century will bring for the U.S. ethanol industry.

“For the past 25 years, this conference has been bringing the industry and its allies together to learn, share, network and celebrate our hard work,” Koehler said. “There will be so much to talk about in 2020, from presidential politics to increased calls for action on climate concerns. At the same time we’re talking about politics and policy, we’re also moving forward when it comes to building new markets, driving efficiency and advancing sustainability.”

The NEC is the nation’s most widely attended executive-level conference for the ethanol industry. At the 2019 NEC, about 1,000 industry leaders and professionals attended, representing 38 states and the District of Columbia. A strong international presence was also felt, with attendees from 16 countries.

Visit NationalEthanolConference.com for more information and registration.

Ethanol, Ethanol News, National Ethanol Conference, RFA

Biofuels Industry Reacts to Administration Plan

Cindy Zimmerman

Under the biofuels plan announced Friday, the Environmental Protection Agency will propose and request public comment on expanding biofuel requirements beginning in 2020 and will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries.

Industry organizations have reacted positively to the plan but there are concerns that it does not account for the millions of gallons already lost under the SREs that have already been granted.

Renewable Fuels Association President and CEO Geoff Cooper says the plan is “a crucial step toward repairing the damage done by EPA’s small refinery waivers and re-establishes the RFS as a driver of growth in the production and use of low carbon renewable fuels.”

“It is important to remember that today’s announcement marks the beginning—not the end—of an EPA regulatory process, and much work remains to be done. We will continue to diligently work with EPA and the administration to ensure this action is finalized in a way that guarantees a 15-billion-gallon requirement in 2020 truly is a 15-billion-gallon requirement.”

Interview with RFA CEO Geoff Cooper on administration biofuels plan

American Coalition for Ethanol (ACE) CEO Brian Jennings says it’s good EPA will account for waivers beginning in 2020 but bad that they are “doing nothing to reallocate the more than 4 billion gallons of RFS blending obligations waived for refineries from the 2016, 2017 and 2018 compliance years.”

“Because this plan is short on details and the final outcome is dependent upon a new rulemaking process, it’s unrealistic and premature for me to conclusively praise it at this stage.”

Interview with ACE CEO Brian Jennings on administration biofuels plan

National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik says, “Proper accounting of the exemptions is vital to ensure that the annual RFS volumes send a reliable signal to biodiesel producers, who are making investments and plans for the future.”

“The biodiesel industry relies on the RFS program to support continued growth and market development. While today’s proposal addresses the lost gallons from future exemptions, it does not provide for additional volumes of biomass-based diesel in 2021. We will continue to press EPA to send signals for future growth for biodiesel producers and soybean farmers.
Interview with NBB VP Kurt Kovarik on administration biofuels plan (6:48)

ACE, Audio, Biodiesel, biofuels, Ethanol, Ethanol News, NBB, RFA, RFS

EPA and USDA Announce Biofuels Agreement

Cindy Zimmerman

Environmental Protection Agency (EPA) Administrator Andrew Wheeler and USDA Secretary of Agriculture Sonny Perdue issued joint statements on an agreement promoting biofuels under the Renewable Fuel Standard.

“President Trump’s leadership has led to an agreement that continues to promote domestic ethanol and biodiesel production, supporting our Nation’s farmers and providing greater energy security,” said EPA Administrator Andrew Wheeler. “Today’s agreement is the latest in a series of steps we have taken to expand domestic energy production and improve the RFS program that will result in sustained biofuel production to help American farmers.”

“President Trump has once again demonstrated that he is a champion for our nation’s farmers and rural America,” said USDA Secretary Sonny Perdue. “The President recognizes that American farmers are the most productive in the world, and he has found a way to pursue policy that promotes economic growth and supports our producers. Building on the success of the year-round E15 rule, this forward-looking agreement makes improvements to the RFS program that will better harness the production of our farmers and ensure America remains energy dominant.”

The announcement today outlines the following actions to be taken by EPA and USDA:

EPA will propose and request public comment on expanding biofuel requirements beginning in 2020.

EPA will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries.

EPA intends to take final action on this front later this year.

In addition, EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15 and continue to evaluate options for RIN market transparency and reform. USDA will seek opportunities through the budget process to consider infrastructure projects to facilitate higher biofuel blends. And finally, the Administration will continue to work to address ethanol and biodiesel trade issues.

Biofuel and farmer organizations are thanking the administration for this action which they say would put the RFS back on track.

Biodiesel, biofuels, EPA, Ethanol, Ethanol News, RFS, USDA

Corn and Ethanol Producers Waiting for Relief

Cindy Zimmerman

Ethanol producers and corn farmers held a telephone press conference Wednesday to spotlight recent research on the impacts of ethanol plant closings, a new survey on voter attitudes about ethanol, and a potential White House agreement to promote further renewable fuels use.

The main message from Renewable Fuels Association President and CEO Geoff Cooper, new National Corn Growers Association President Kevin Ross, and others on the call, is that they need to see the EPA do something to account for gallons lost to small refinery exemptions, as required under the law.

Commenting on news reports this week that the administration is close to making an announcement on a package to help, Cooper said it can’t come soon enough. “Each day that passes without a resolution is one step closer to the abyss” for farmers and ethanol plants. He talked about 18 plants that have closed permanently or temporarily recently and how that impacts the community.

RFA Chairman Neil Koehler with Pacific Ethanol, which has shut down one of its plants, says he has been in the ethanol business for 35 years. “This is the worst year we have ever experienced,” and it is the direct result of EPA granting the small refinery exemptions without redistributing those gallons.

“We are not asking for anything other than for EPA to uphold the RFS,” said Ross. “This issue has certainly hurt a lot of markets for farmers and created more of an issue going into a fall where we need markets opened up and we need crops to move.”

Also on the call were farmer Brian Thalmann, immediate past president of Minnesota Corn Growers, and Al-Corn Clean Fuel CEO Randy Doyal.

Listen to opening remarks:
RFA call on ethanol industry issues

Audio, corn, Ethanol, Ethanol News, NCGA, RFA, RFS