Farmer and Ethanol Advocate Provides Perspective

Cindy Zimmerman

Farmer and Nebraska Ethanol Board member Scott McPheeters joined a diverse panel of agricultural producers at the recent Bayer AgVocacy Forum in Orlando, prior to Commodity Classic.

McPheeters shared the stage with California specialty crop producer Don Cameron, Terranova Ranch; South Carolina cotton and diversified crop farmer Jeff Wilson, Cotton Hills Farm; and Michelle Erickson-Jones, aka BigSkyFarmHer on Twitter, a livestock and grain farmer from Montana.

During the panel McPheeters was able to share his perspective with the forum attendees about the need to advocate for ethanol and correct misconceptions, such as that it takes more energy to produce than it creates. “That’s a worn out, tired argument from 30 years ago,” said McPheeters. “Just think what your cell phone technology was 30 years ago…oh wait, we didn’t have them.”

“It’s like that with ethanol. It’s all changed and we are doing more with less every day.”

McPheeters noted that one acre of corn will provide fuel to drive your SUV (20 miles per gallon) 10,000 miles and have 8,000 pounds of livestock feed leftover – and also 160 pounds of oil.

Listen to the Grower Perspective panel –
Grower perspective panel

Listen to an interview from the forum –
Interview with Scott McPheeters, Nebraska farmer

Audio, Bayer, corn, Ethanol, Ethanol News

Senator Angry Over Reported EPA Rule Breaking

Cindy Zimmerman

U.S. Senator Deb Fischer (R-NE), a member of the Senate Agriculture Committee, is upset about news reports last week that former EPA Administrator Scott Pruitt broke the rules to expand the number small refinery exemptions (SREs) granted to oil refiners.

“I am angry by reports that show what we long suspected: former EPA Administrator Scott Pruitt ignored the law to help big refineries at the expense of farmers and ethanol producers,” said Sen. Fischer in a statement. “The EPA gave ‘hardship exemptions’ to profitable refineries, releasing them from their biofuel blending obligations. According to projections, this could cause the ethanol industry to lose billions of gallons in demand.”

Sen. Fischer says she intends to pursue legislative options to address abuse in the small refinery exemption process. “I will also push new leadership at the EPA to make sure the agency is upholding the Renewable Fuel Standard as intended by law,” she added.

During the 17 months that Pruitt was administrator of the EPA, 48 waivers were granted to refineries to release them from their legal blending obligations under the Renewable Fuel Standard (RFS). Reuters reported last week that EPA regulators under Pruitt stopped considering whether compliance with the RFS would prevent a refinery from making money and being competitive, and instead based the decision on whether compliance would cause a “disproportionate” impact on the facility. The report was based on a court filing by the Advanced Biofuels Association (ABFA).

EPA, Ethanol, Ethanol News, RFS

ACE Participates in Nebraska Ethanol Forum Panels

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty participated in two panels last week at Nebraska Ethanol Board’s 2019 Emerging Issues Forum.

Lamberty was joined by retailers Randy Gard of Bosselman Enterprises and Matt Spackman of Kum & Go to discuss opportunities and practical considerations to increase E15 and higher ethanol blends.

“Many retailers are concerned their equipment isn’t compatible, but that’s not likely,” Lamberty said. “The Department of Energy’s National Renewable Energy Lab published their E15 and Infrastructure report nearly four years ago, and in it they said, ‘the majority of installed tanks can store blends above E10.’ We can put retailers in touch with other marketers, who have increased their volumes and profits selling higher ethanol blends, at flexfuelforward.com.”

Lamberty also moderated a panel about emerging markets for U.S. ethanol with Roger Berry of the Nebraska Corn Board, Kristy Moore of KMoore Consulting LLC, and Craig Willis of Growth Energy. Lamberty discussed what he’s learned speaking at technical ethanol information forums in Mexico over the past year.

ACE, Ethanol, Ethanol News

New Data Confirms Ethanol Demand Destruction in 2018

Cindy Zimmerman

New data from the Energy Information Administration (EIA) and analyzed by the Renewable Fuels Association (RFA) reveals ethanol demand in 2018 was negatively impacted by EPA granting dozens of small refinery exemptions (SREs).

Former EPA Administrator Scott Pruitt granted 48 refiners waivers from their legal blending obligations under the Renewable Fuel Standard (RFS), resulting in a flood of Renewable Identification Numbers (RIN) into the market and a subsequent collapse in RIN prices. According to RFA, the wave of surplus RINs reduced the incentive to expand ethanol blending beyond the so-called E10 “blend wall,” while low RIN prices pressured ethanol values and margins throughout 2018 and the resulting demand destruction hurt ethanol producers, farmers and consumers.

According to the Renewable Fuels Association’s (RFA) analysis of the new EIA data:

U.S. ethanol consumption declined to 14.42 billion gallons in 2018 from 14.50 billion gallons in 2017. Based on the EIA’s forecast in January 2018 (i.e., before the market became aware of rampant SREs), U.S. ethanol consumption was expected to reach 14.66 billion gallons—237 million gallons more than what actually occurred; and
The U.S. ethanol blend rate fell to 10.07% in 2018 from 10.13% in 2017. The blend rate began to drop in February 2018, as rumors and press reports regarding SREs made their way into the market. This was far below expectations at the start of 2018, when EIA had forecasted an implied ethanol blend rate of 10.26% for 2018. For the February-December period, the blend rate averaged just 10.01%.

“This was the first year-over-year decline in U.S. ethanol consumption since 1998, breaking a 20-year trend of annual increases in domestic ethanol demand. Similarly, the blend rate slid backward for the first time since EIA began offering more robust ethanol blending data in 2010,” said RFA President and CEO Geoff Cooper. “As newly confirmed EPA Administrator Andrew Wheeler considers the 37 petitions now before him for small refiner exemptions from 2018 RFS requirements, we urge him to take a more measured, constrained, and reasonable approach that remains faithful to the spirit and intent of the RFS.”

Read the full RFA analysis here.

EPA, Ethanol, Ethanol News, RFA

Biodiesel Drives the Work Truck Industry

Cindy Zimmerman

New research from NTEA – The Association for the Work Truck Industry confirms that fleets across the country are increasingly relying on the power and performance of biodiesel in their existing and new diesel vehicles. For the third time in four years, surveyed fleets named biodiesel as their top alternative fuel choice both for current use and future interest.

Each year, NTEA conducts a comprehensive Fleet Purchasing Outlook Survey to better understand the commercial vehicle landscape and give the entire work truck industry perspective on anticipated purchasing intent and areas of greatest interest to fleet managers. The new survey results for 2019 were announced last week at The Work Truck Show® held in conjunction with Green Truck Summit and Fleet Technical Congress in Indianapolis.

Specifically, the 2019 NTEA Fleet Purchasing Outlook revealed that the majority of fleet survey respondents – 76 percent – anticipate maintaining or increasing use of diesel engine-powered trucks in their fleets, and more than 33 percent of survey respondents acknowledged currently operating alternative fueled trucks in their fleets. Survey participants named biodiesel as their top alternative fuel choice at 16 percent. Additionally, biodiesel was named as their top choice for future interest at 14 percent.

The National Biodiesel Board credits the nation’s growing interest in reducing carbon and greenhouse gas emissions from the transportation sector as indicators for future growth in the use of biodiesel. NBB featured the Chicago Park District’s biodiesel fleet success story along with many others at the combined events of the 2019 NTEA’s Work Truck Show, Green Truck Summit, and Fleet Technical Congress. Along with presenting an educational session on the Future of Diesel Technology and Biodiesel for Work Trucks, NBB partnered with Isuzu Commercial Truck of America to power its 2019 Isuzu FTR medium-duty truck with B20 biodiesel for The Work Truck Show Ride-and-Drive event. Also on display in the NBB booth was Cummins’ new crated aftermarket diesel engine offering – the R2.8 Turbo Diesel – re-powering a 1972 Jeep Commando that was brought back to new life by NBB.

Biodiesel, Fleet, NBB, Trucks

2018 Second Highest Year for Distillers Grains Exports

Cindy Zimmerman

U.S. exports of the ethanol co-product distillers grains (DG) were the second-highest on record in 2018, totaling 11.88 million metric tons (MMT), according to a new report from the Renewable Fuels Association (RFA).

An estimated 31 percent of U.S. DG production was exported in 2018, meaning nearly one out of every three tons produced was exported to 50 countries on six continents last year. Mexico remained the top destination for U.S. DG, representing 17 percent, followed by Vietnam (11 percent), South Korea (10 percent), Thailand (9 percent) and Turkey (7 percent). Compared to 2017, Vietnam and the United Kingdom saw the most growth in U.S. DG exports, increasing by 306 percent and 52 percent, respectively.

However, U.S. DG exports to China continued to see a significant drop since 2016, when the country imposed punitive anti-dumping and countervailing duties against U.S. product. “Exports to China fell further after plunging 84 percent in 2017 due to the imposition of duties; it ranked 17th in 2018, accounting for only 2 percent of U.S. exports,” the summary noted.

The report also details exports of corn gluten meal, another ethanol co-product for livestock feed. U.S. exports totaled 821,000 MT in 2018. Indonesia, Chile, and Egypt were top destinations; U.S. exports of corn gluten feed reached 1.17 MMT in 2018, down slightly from the prior year. Ireland, Israel and the United Kingdom accounted for a combined 76 percent of total U.S. corn gluten feed exports.

Read the report.

corn, Distillers Grains, Ethanol, Ethanol News, Exports, Feed

New RFA Report Summarizes 2018 Ethanol Export Statistics

Cindy Zimmerman

On the heels of new government data this week confirming record U.S. ethanol exports in 2018, the Renewable Fuels Association (RFA) has released a 10-page report summarizing 2018 ethanol export and import data and highlighting key facts and trends related to global ethanol trade.

RFA’s new report is the go-to source for all the key facts and figures regarding U.S. ethanol trade. It provides annual and monthly data on U.S. ethanol exports, highlighting the fact that a new export record of 1.70 billion gallons was set in 2018. Top destinations for U.S. ethanol exports are also discussed in the report, along with information on the impact of trade barriers on shipments to certain markets.

The booklet also offers data on ethanol imports, showing that the U.S. continues to import very little fuel ethanol and remained a net exporter by a large margin in 2018. Maps depicting the leading ports of entry and departure for U.S. ethanol imports and exports are also offered, as are figures showing the annual economic value of U.S. ethanol exports.

Read it here – 2018 U.S. Ethanol Export and Import Statistical Summary.

Audio, Ethanol, Ethanol News, Exports, RFA

Biodiesel Industry Grows Stronger with New Additions

Cindy Zimmerman

Six more entities have become members of the National Biodiesel Board (NBB) in recent months, strengthening the voice of the industry.

The new companies range from biodiesel producers, to distributors, to commodity traders, who join the extensive and diverse organizations that make up NBB.

NBB’s newest members include:

Novozymes North America – global producer of a wide range of industrial enzymes and microorganisms.
New England Fuel Institute – a trade association focused on the liquid heating fuels market.
Rio Valley Biofuels, LLC – a biodiesel producer and distributor from the southwest.
ENI Trading and Shipping – a commodity trader of crude oils and refined products.
DEASYL SA – an international supplier of technologies and catalysts for the petroleum industry.
Genuine Bio-Fuel Inc. – a biodiesel producer from Florida.

Biodiesel, NBB

2018 Ethanol Exports Officially Record High

Cindy Zimmerman

The latest government data shows U.S. ethanol exports hit a new record in 2018 with 1.70 billion gallons of ethanol shipped to over 80 countries. That’s almost 11% of total U.S. ethanol production. The value of U.S. ethanol exports was $2.7 billion in 2018, up 14% from 2017’s value and the highest on record.

Brazil was the leading destination for U.S. ethanol exports, receiving 513.2 million gallons (mg), or 30% of the total. Canada was the second-leading market with 349.6 mg, followed by India at 156.8 mg. Together, the three countries accounted for 60% percent of total ethanol exports. The European Union, South Korea, and the Philippines were other top markets in 2018. Export volumes to nine of the top 10 destinations saw increases over 2017 volumes, with Brazil, the Netherlands, South Korea, the United Arab Emirates, and Colombia showing the largest gains.

“One of the greatest successes for our industry in 2018 was growth in the export market, driven in large part by the sustained international market development efforts of RFA and its partners,” saied Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “More than one out of every 10 gallons of ethanol produced in the United States went into the international market—providing savings at the pump and cleaner air for drivers in more than 80 countries around the globe. This accomplishment is even more impressive when you consider that U.S. ethanol faced punitive trade barriers in several key markets. RFA will continue to work with its partners to break down artificial trade barriers, expand export opportunities for U.S. producers, and educate the world’s consumers on the benefits of low-carbon renewable fuels.”

Ethanol, Ethanol News, Exports, RFA

Diverse Coalition Submits Soil Health Comments

Cindy Zimmerman

The American Coalition for Ethanol (ACE) joined agricultural and environmental groups in submitting comments on soil health this week.

The Soil Health Demonstration Trial will provide economic assistance to assist willing farmers participating in the project to assess baseline soil carbon conditions, adopt conservation practices to improve soil carbon sequestration, and measure the resulting soil carbon improvements.

“We look forward to working with USDA to implement this important tool to encourage farmers to implement practices that improve soil health to increase drought resiliency, improve nutrient utilization, and enhance soil carbon sequestration,” said ACE CEO Brian Jennings. “By providing producers with financial assistance to document the changes in soil carbon sequestration, this trial will help quantify the SOC sequestration benefits for the project area, facilitate extrapolation over a larger region, and establish the necessary predicates for lucrative producer access to mandated low carbon fuel (LCF) markets (e.g., CA, OR) and voluntary carbon markets.”

Last year, ACE published a report entitled “The Case for Properly Valuing the Low Carbon Benefits of Corn Ethanol,” based in a large part on work done by South Dakota farmer and ethanol producer Ron Alverson.

Listen to an interview with Alverson about
Interview with Ron Alverson, Dakota Ethanol

ACE, Audio, corn