Ethanol Report Preview of Export Exchange 2018

Cindy Zimmerman

Around 500 attendees from at least 38 countries are expected to be at Export Exchange 2018, coming up October 22-24 in Minneapolis. The event, which brings together international buyers and U.S. sellers of distillers dried grains with solubles (DDGS), was started in 2019 by the U.S. Grains Council and the Renewable Fuels Association.

In this edition of The Ethanol Report podcast, RFA Executive Vice President Geoff Cooper previews this year’s event and the impact trade negotiations with some of the biggest markets for U.S. DDGS might have on exports.

Ethanol Report Preview of Export Exchange

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Audio, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Export Exchange, Exports, Renewable Fuels Association, RFA

Summer Restriction on E15 Sales Ends Sunday

Cindy Zimmerman

The kids are back in school now and this weekend E15 will be back at the pump.

The regulatory restriction, which President Trump has called “ridiculous” and “unnecessary,” that prevents gasoline retailers from selling 15% ethanol (E15) in much of the country during the summer will finally be lifted on Sunday, Sept. 16. This will once again allow consumers across the nation to have access to the higher octane, less expensive fuel.

President Trump has expressed support on multiple occasions this year for allowing year-round E15 sales, but EPA has yet to make it happen. Farm and ethanol groups wrote to the president this week, urging his administration to follow through and provide farmers and ethanol producers with expanded access to markets and new sources of demand at a time when agricultural and biofuel markets are struggling.

“EPA’s nonsensical restriction on E15 is preventing consumers from saving money at the pump precisely when prices are typically at their highest and is hamstringing further expansion in the marketplace,” said Renewable Fuels Association (RFA) President and CEO Bob Dinneen. “Former EPA Administrator Scott Pruitt has already destructed demand for more than 2.25 billion gallons of biofuel. With the corn and ethanol industries hurting, EPA needs to act now to provide new value-added market opportunities and ensure consumers have consistent access to lower priced, higher octane E15.”

Just this week, the Minnesota Department of Commerce reported that only 2.86 million gallons of E15 was sold in the state in July–the lowest recorded since September 2017 and less than half of the volume sold just two months earlier in May, prior to the summer RVP ban kicking in.

E15, Ethanol, Ethanol News, RFA, RFS

Iowa Biodiesel Board Elects Leaders

Cindy Zimmerman

The Iowa Biodiesel Board elected leadership during this week’s annual meeting in Des Moines.

Tom Brooks, general manager of biodiesel producer Western Dubuque Biodiesel in Farley, Iowa, was re-elected to lead the organization for the next year. Doug Lenhart, vice president of procurement and logistics at Iowa-headquartered Renewable Energy Group (REG) was elected secretary. He replaces Dawn Carlson, Petroleum Marketers and Convenience Stores of Iowa. She remains on the board as a director.

The full slate of officers for the organization is:
• Chair: Tom Brooks, Western Dubuque Biodiesel (re-elected)
• Vice Chair: Brad Wilson, Western Iowa Energy (re-elected)
• Treasurer: Reed Herzig, Monsanto (newly elected)
• Secretary: Doug Lenhart, REG

The board also elected Dave Walton, a soybean farmer from Wilton, Iowa, serve on the board, replacing Ron Heck as the Iowa Soybean Association representative.

Biodiesel, Soybeans

CARB Internship Focuses on Cellulosic Ethanol

Cindy Zimmerman

The Renewable Fuels Foundation (RFF), Pacific Ethanol, and Aemetis co-sponsored a new internship this year at the California Air Resources Board (CARB) for a college student to learn more about low-carbon cellulosic biofuels and their potential to reduce greenhouse gas emissions. The RFF is the research and educational arm of the Renewable Fuels Association (RFA).

Diamond Coleman, a senior biology major at Occidental College in Los Angeles, was chosen for the internship this summer and focused her work primarily on cellulosic ethanol made from corn kernel fiber. “Previously, I have been consumed in laboratory research studies and this gave me a chance to get out of that box and expand my horizons,” Coleman said. “I was a sponge and absorbed as much information as I could about cellulosic ethanol production and the Low Carbon Fuel Standard.”

While at CARB, Coleman conducted and extensive literature review regarding cellulosic ethanol and compiled her findings into a comprehensive report that was shared with CARB staff and other industry experts. Through this work, Coleman said she developed a deep appreciation for the role that cellulosic ethanol from corn fiber and other feedstocks can play in reducing GHG emissions.

“Thanks to this internship, I learned about the numerous clean energy benefits of cellulosic ethanol,” said Coleman. “I am passionate about efforts to help clean the air and reduce greenhouse gas emissions, and believe cellulosic ethanol from corn fiber can play a significant role. I greatly appreciate the opportunity afforded to me and want to thank the Renewable Fuels Foundation, Pacific Ethanol, and Aemetis for co-sponsoring my internship.”

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the production of advanced fuels and chemicals. Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States, headquartered in Sacramento.

advanced biofuels, Cellulosic, Ethanol, Ethanol News, RFA

USDA Expands Crop Forecast from Last Month

Cindy Zimmerman

The 2018 corn, soybean, and cotton crops are all forecast to be two percent larger than USDA predicted in August, in the latest crop production report issued Wednesday.

Corn production is now forecast at 14.8 billion bushels, up 2 percent from August and up 2 percent from last year. Based on conditions as of September 1, yields are expected to average 181.3 bushels per acre, up 2.9 bushels from the August forecast and up 4.7 bushels from 2017. If realized, this will be
the highest yield on record for the United States.

Soybean production is forecast at a record 4.69 billion bushels, up 2 percent from August and up 7 percent from last year. Based on September 1 conditions, yields are expected to average a record high 52.8 bushels per acre, up 1.2 bushels from last month and up 3.7 bushels from last year.

All cotton production is forecast at 19.7 million 480-pound bales, up 2 percent from August but down 6 percent from last year. Yield is expected to average 895 pounds per harvested acre, down 16 pounds from last month and down 10 pounds from last year.

The new World Agricultural Supply and Demand Estimates also calls for larger production, increased domestic use, greater exports, and higher ending stocks for corn.

Feed and residual use and export demand projections were raised by 50 million bushels, with ethanol demand estimates raised by 25 million bushels. “As the increase to production projections more than offset these demand increases, the average farm price was decreased by 10 cents, with the new price range projected as $3.00 to $4.00 per bushel,” noted the National Corn Growers Association.

“Corn was the biggest surprise in this report,” said Brian Basting of Advance Trading, Inc., in his analysis during the MGEX Crop Conference call, adding that the “trade was actually looking for a decrease” in corn yield compared to August.

Listen to some of Basting’s analysis here: MGEX crop call comments from Brian Basting, Advance Trading

Audio, corn, Ethanol, Ethanol News, NCGA, USDA

Ethanol and Farm Groups Getting Impatient for Answers

Cindy Zimmerman

In the wake of repeated promises and assurances from the Trump Administration, but no actions, ethanol stakeholder groups are running out of patience.

In a joint letter to President Trump today, the American Farm Bureau Federation, National Corn Growers Association, National Farmers Union, National Sorghum Producers, American Coalition for Ethanol, Growth Energy, and Renewable Fuels Association urged the administration to act immediately to restore the integrity of the Renewable Fuel Standard (RFS) and allow year-round sales of E15 and other mid-level ethanol blends. The groups also expressed concern that any benefit from year-round E15 sales and proper implementation of the RFS could be nullified if refiners are given further regulatory bailouts that undercut the spirit and intent of the law.

The letter follows comments made by Secretary of Agriculture Sonny Perdue on Aug. 29 that President Trump was anxious to get an answer on the RFS and E15 to announce.

“He said…we need to get this RFS straightened out and get E15 twelve months,” said Perdue. “He wants something done quickly. He said, ‘you get with that EPA Administrator and bring me something next week that I can announce.'”

Perdue comments at FPS18 RFS Rally

The day before, in an exclusive interview with RFD-TV on August 28, President Trump said “I’m going to be making some statements on that very soon. We’re working very hard on the ethanol situation.” He also said it was “complex because as you take care of ethanol, someone else gets hurt.”

RFD-TV Interview with Pres. Trump comments on ethanol

Last week, which was the week Secretary Perdue said the president wanted something to announce, the secretary told reporters,”We’re working feverishly to resolve the RFS issue…I think we can resolve it to the satisfaction of both our ethanol industry as well as our refinery industry,” Perdue said.

Audio from USDA – Secretary Perdue comments on RFS issue progress

But the farm and ethanol groups say time is running out for rural America, as corn prices are below the cost of production, while ethanol prices, RIN credit prices, and ethanol profit margins are falling.

“Former EPA Administrator Scott Pruitt already gave refiners far more than their end of a deal in the form of 2.25 billion gallons of biofuels demand destruction, and they are reaping the rewards of that windfall today,” the letter continued. “Now, with the corn and ethanol industries hurting, it’s rural America’s turn to get its end of the deal.”

ACE, AFBF, Audio, corn, Ethanol, Ethanol News, Growth Energy, NCGA, NFU, RFA, RFS

National Biodiesel Celebrates Ten Green Years

Cindy Zimmerman

NBB celebrates 10th anniversary of green headquarters

On Monday, September 10th, the National Biodiesel Board celebrated 10 green years in their Jefferson City office biulding.

“The National Biodiesel Board was started here in Jefferson City 25 years ago,” said Chief Executive Officer Donnell Rehagen. “This building has served NBB for the last ten years, allowing us to grow our industry across the nation.”

In 2008, NBB moved into their home in Jefferson City after remodeling a previously vacant building on the East side of town. The office itself was designed with sustainability in mind, with energy efficient indoor lighting, recycled carpet, and solar powered outdoor lights. NBB wanted to follow biodiesel’s lead with clean, green energy. Since moving into their celebrated space, the biodiesel industry has made significant strides and continues to see progress each year.

NBB cuts ribbon on new building – 9/10/08

AgWired reporter John Davis was there when the building was opened in 2008 and did a nice job documenting the event, complete with the ribbon cutting, a tour of the building, and comments from dignitaries.

Get a blast from the past and listen to some opening day 2008 comments from Missouri’s governor at the time, Matt Blunt, and (now former) Rep. Kenny Hulshof (R-MO), who remains active in the biodiesel industry.

Missouri Gov Matt Blunt, 9/10/08

Rep. Kenny Hulshof, 9/10/08
Biodiesel, NBB

Growth Energy Hosting 9th Biofuels Summit

Cindy Zimmerman

Growth Energy is holding its 9th Annual Biofuels Summit in Washington, D.C., this week to visit with lawmakers on behalf of the ethanol industry for a strong Renewable Fuel Standard, year-round sales of E15, and access to more international markets.

Attendees will also have the opportunity to hear from a number of exciting guest speakers, including U.S. Secretary of Agriculture Sonny Perdue, Chief Agricultural Trade Negotiator Ambassador Gregg Doud, and U.S. Senator Heidi Heitkamp (D-ND). Additionally, Growth Energy CEO Emily Skor will give a keynote address in which she outlines the challenges the ethanol industry faces, but also the victories from this past year.

“Growth Energy’s members are the voices that policymakers need to hear because they are in the field, creating jobs, lifting up the heartland, and revolutionizing the fuel industry in the U.S. and around the world,” said Growth Energy CEO Emily Skor. “This week, we will take our victories and the challenges still ahead to Capitol Hill to find a path forward for our goal of bringing cleaner, more affordable, high-performance fuel to consumers nationwide and around the globe.”

Follow the hashtag #BiofuelsSummit for updates and photos from the event this week.

biofuels, E15, Ethanol, Growth Energy

Ethanol Report on Helping Refiners and Hurting Ethanol

Cindy Zimmerman

The actions and inaction of the Trump Administration continue to hurt the ethanol industry and farmers, despite words and promises.

Renewable Fuels Association (RFA) notes that an updated analysis from the Food and Agriculture Policy Research Institute (FAPRI) shows the U.S. ethanol industry could lose 4.6 billion gallons of domestic demand and nearly $20 billion in sales revenue over the next six years if EPA continues its current practice of refinery exemptions. Meanwhile, President Trump and even the Secretary of Agriculture are still saying they need to give something to the oil industry to help out ethanol producers and farmers.

In this edition of The Ethanol Report podcast, RFA Executive Vice President Geoff Cooper discusses the latest on the two key issues that have dominated biofuels policy this year – refinery exemptions that have impacted demand under the Renewable Fuel Standard, and allowing year-round sales of 15% ethanol.

Ethanol Report on Helping Refiners and Hurting Ethanol

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

2nd RFA ‘Ethanol Days of Summer’ Contest a Success

Cindy Zimmerman

Labor Day signaled both the unofficial end of summer and the official conclusion of the Renewable Fuels Association’s second annual “Ethanol Days of Summer” contest.

More than 3,600 new users of www.E85prices.com registered and helped report prices for higher ethanol blends and conventional fuels during the three-month contest, which offered consumers the chance to win $50 in free fuel per day. Overall, there were 58 winners who collectively received $4,950 in free fuel. www.E85prices.com is crowdsourced and provides pricing and locations for thousands of stations selling ethanol blends across the country.

“We are thrilled that our second annual ‘Ethanol Days of Summer’ contest was a success,” said RFA Vice President of Industry Relations Robert White. “We want to make sure consumers are aware of a lower priced, homegrown fuel option. E85prices.com provides drivers with data at their fingertips, tracking the locations and prices of those ethanol stations closest to them. We will continue to build out our data collection capabilities and look forward to providing consumers with even more information on ethanol blend pricing.”

The market for higher ethanol blends continues to grow. All model year 2001 and later light duty vehicles can use 15% ethanol (E15), accounting for more than 90% of the vehicles on the road today. Additionally, more than 22 million flex fuel vehicles can use 85% ethanol (E85). However, many consumers aren’t aware about either ethanol blend as an option for their vehicle.

For more information on this year’s contest and to see a list of winners, visit www.ChooseEthanol.com/summer.

E15, E85, Education, Ethanol, Ethanol News, RFA