Ethanol Exports Down in May

Cindy Zimmerman

The latest analysis from the Renewable Fuels Association (RFA) finds exports of U.S. ethanol dropped in May while DDGS exports stayed about steady.

U.S. ethanol exports in May were down 43% from April to a four-month low of 91.9 million gallons. That’s less than half of the record volumes in February (218.7 mg) and March (215.1 mg). Canada broke Brazil’s five-month streak as the largest export market with 31.9 mg (35% of total exports), a 15.3% increase over April.

With Brazil and China markets restricted by trade barriers, U.S. exporters ramped up shipments to other existing customers. Ethanol exports to Peru increased 145% to a record 12.7 mg (14% of total exports), shipments to the Philippines nearly doubled from April to 9.5 mg (10% of total), and South Korea saw a 10% boost to 8.4 mg (9% of total). Meanwhile, exports to Brazil withered to 9.5 mg (10% of exports), an 84% drop from April. These five countries accounted for more than three-fourths of all U.S. ethanol exports in May. Year-to-date exports stand at 776.2 mg, implying a record annualized total of 1.86 billion gallons.

May exports of dried distillers grains with solubles (DDGS) held steady at 994,006 metric tons (mt), easing just 0.4% from April volumes. However, market dynamics changed as U.S. shippers sent 148,682 mt of DDGS to Turkey (15% of the total market). Turkey’s 80% increase over April represented the country’s largest imports in 10 months—sufficient to overtake Mexico as the top export customer after a 13-month stretch. U.S. shippers reduced DDGS sales to Mexico by 20% (146,375 mt, 15% of the market) in May. Other large markets were South Korea (124,657 mt, up 29%), Vietnam (89,329 mt, down 24%), Thailand (75,490 mt, down 15%), and Ireland (39,826, up 180%). Year-to-date exports stand at 4.6 million mt, implying an annualized total of 11.1 million mt—on par with last year.

Read more from RFA analyst Ann Lewis

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Saipem and California Ethanol & Power Sign MOU

Cindy Zimmerman

Saipem has signed a Memorandum of Understanding with California Ethanol & Power to develop a low carbon emission plant for the production of ethanol, renewable electricity, bio-methane, and other secondary products derived from sugarcane cultivated on site.

The plant will be located in California’s Imperial County and Saipem will design and construct the non-electrical part of the project and related services, while the electrical part will be assigned to General Electric.

Saipem is a world leader in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market.

Electricity, Ethanol, Ethanol News, sugarcane

Growth Energy Hires New Communications VP

Cindy Zimmerman

Jennifer Morris has joined Growth Energy as new Vice President of Communications and Public Affairs. Morris previously served as Senior Vice President of Corporate and Public Affairs at Edelman.

“One of our main directives at Growth Energy is to effectively communicate that success story – whether it be to policymakers, consumers, members, or other industry stakeholders – in a way that truly moves the needle for biofuels. Jennifer’s diverse mix of experience and expertise is just what we need to be the tip of the spear in communicating ethanol’s value to a wide range of key audiences,” said Growth Energy CEO Emily Skor.

Prior to Edelman, Morris was the Head of Global Public Affairs and Financial Literacy for Visa, Inc., and has previous communications experience on Capitol Hill. She holds an undergraduate degree from Tulane University and a Masters of Public Administration from the American University School of Public Affairs.

biofuels, communications, Ethanol, Growth Energy

American Drivers Surpass 5 Billion Miles on E15

Cindy Zimmerman

In the midst of Reid Vapor Pressure (RVP) restrictions on the sale E15 fuel across most of the country, American drivers have still driven another billion miles on 15 percent ethanol fuel in the past two months, for a total of 5 billion miles on E15, according to Growth Energy. The latest milestone was reached as consumers only have access to E15 in Reformulated Gasoline (RFG) markets or if they drive flex fuel vehicles.

“When we give consumers a better option at the pump, they choose E15 again and again,” said Growth Energy CEO Emily Skor. “That’s why Americans have surpassed more than 5 billion miles on E15, which provides unrivaled value for their engines, the environment, and their wallets.”

Working hand-in-hand with Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, Growth Energy has doubled the number of E15 stations four years in a row to include 1,400 stations across 30 states. In addition to the stores currently selling E15, Growth Energy and Prime the Pump have secured commitments for more than 2,800 retail sites that will offer E15 by 2021, generating approximately 350 million new ethanol gallons annually.

It was the first week in May that Growth Energy announced the four billion gallon milestone.

E15, Ethanol, Growth Energy

Registration Open for Export Exchange 2018

Cindy Zimmerman

Registration is now open for Export Exchange 2018, Oct. 22-24 in Minneapolis.

The U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), and Growth Energy are encouraging U.S. suppliers of coarse grains and co-products, industry representatives and members of the grain trade to plan on attending this biennial event which connects them with international grain buyers.

The Exhange is expected to bring together 200 international buyers and end-users of coarse grains and co-products, including distillers dried grains with solubles (DDGS), with approximately 300 U.S. suppliers and agribusiness representatives.

In addition to networking opportunities, the conference will have general sessions, which will address critical issues facing U.S. agricultural exports, offering the customers and sellers in attendance an increased awareness of the benefits of U.S. coarse grains and co-products, including DDGS.

Following Export Exchange 2016, buyers and end-users reported sales of approximately 2.6 million metric tons of grains and co-products worth $460 million traded either at the conference or immediately before or after.

Registration is available online and members of USGC, RFA, and Growth Energy members are eligible for discounted pricing.

Distillers Grains, Ethanol, Ethanol News, Events, Export Exchange, Exports, Grains, Growth Energy, RFA, USGC

Scott Pruitt Resigns From EPA

chuck zimmerman

Well, here’s news that probably won’t upset too many people I know. I’m actually amazed that this didn’t happen much sooner. Of course this had to happen during a pretty much vacation week for the ZimmComm Team and many, many other folks.

Here’s some industry reaction on the announcement. I think you can sum it up that everyone is pretty happy about it.

President Trump’s Tweet announcing his acceptance of Pruitt’s resignation

National Corn Growers Association (NCGA)
Quote from Kevin Skunes, president and North Dakota Farmer:
“It’s no secret corn farmers have been frustrated with Scott Pruitt’s ongoing actions over the past year that have seriously undermined the Renewable Fuel Standard (RFS).

Growth Energy
Quote from Emily Skor, CEO:
“Administrator Pruitt’s tenure as administrator of the EPA put a heavy strain on this administration’s relationship with supporters, farmers, and biofuel producers across the heartland.

Renewable Fuels Association
Quote from Bob Dinneen, CEO:
“For the past year, Scott Pruitt had been waging war against the Renewable Fuel Standard (RFS), the biofuels industry, and the millions of farmers and rural Americans who helped Donald Trump get elected.

National Biodiesel Board
Kurt Kovarik, Vice President of Federal Affairs:
“The EPA plays an important role in implementing policies that have a great impact on our industry. For that reason, we look forward to working with Mr. Wheeler and hope he will act more in line with President Trump’s support for America’s farmers, biofuels producers and the Renewable Fuel Standard.”

AgWired Animal, AgWired Energy, AgWired Precision, Biodiesel, biofuels, EPA, Ethanol, Government

Commodity Classic Releases 2019 Schedule

Less than eight months to go ’til Commodity Classic 2019 – time to start getting prepared!

The tentative schedule for the show to be held February 28 through March 2 in Orlando, has been released and includes extended trade show hours, a full slate of educational sessions, and the Main Stage on the trade show floor returns with presentations from agribusiness leaders, well-known ag personalities and other speakers.

Established in 1996, Commodity Classic is presented by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers and the Association of Equipment Manufacturers.

Ag group, AgWired Energy, AgWired Precision, Commodity Classic

Upcoming Ethanol Plant Educational Opportunities

Cindy Zimmerman

Enrollment is now open for the 2018 Alcohol School, September 9-17 in Montreal. Now in its 37th year, The Alcohol School has a tradition of educating fuel ethanol and distilled beverage producers in the science of alcohol production. This week-long program has become the industry’s premier educational event, covering a variety of timely industry topics.

The Process Safety Boot Camp will be held August 7-9 at Novozymes Inc. in Blair, Nebraska. The three-day course looks at the OSHA PSM Regulations and EPA Prevention Program process safety regulation requirements. The course should be taken by new and experienced ethanol plant front-line engineers responsible for design, maintenance, manufacturing or supervision as managers and engineers involved in regulatory compliance. Find out more from the Nebraska Ethanol Board.

Education, Ethanol, Ethanol News

God Bless America and the American Farmer

Food for thought this Independence Day from former Secretary of Agriculture Tom Vilsack:

“America has to understand and appreciate what it has in agriculture.

American consumers walk out of the grocery store with still more money in their pocket and their paychecks and their incomes than virtually anybody else in the world.

That creates great flexibility in our economy directly connected to American agriculture.

It also provides the opportunity for every single one of us who are not farmers to be able to choose alternative opportunities for ourselves and our families.

We have transferred the responsibility of feeding our families to a relatively small percentage of our population called the American farmer.”

AgWired Animal, AgWired Energy, AgWired Precision, Farming, ZimmComm Announcement

Happy Independence from High Gas Prices

Cindy Zimmerman

A record number of Americans are traveling this week for the July 4th holiday and as we celebrate our nation’s independence, we can also celebrate our independence from high gas prices thanks to ethanol.

According to AAA, a record 39.7 million Americans will travel 50 miles or more by automobile for Independence Day, five percent more than a year ago. Those drivers will be paying at least 12 percent less for gasoline—or $0.26 per gallon—thanks to ethanol, according to a new analysis by the Renewable Fuels Association (RFA). In fact, ethanol is expected to reduce household spending on gasoline by $37 billion this year, or $292 per household.

The analysis also shows that if E15 were available nationwide in place of E10, consumers would be saving even more money. The wholesale savings currently attributable to E15 is $0.32 per gallon, or 15 percent lower than E0 gasoline.

“As a record number of travelers hit the roads this holiday, there is no better way to celebrate Independence Day than to fill up with fuel containing American-made ethanol. In addition to saving American families money at the pump, ethanol boosts rural economies and helps increase our energy independence,” said RFA President and CEO Bob Dinneen.

U.S. dependence on imported petroleum is falling, thanks in part to booming domestic production of renewable fuels. In 2005, the year the original renewable fuel standard was adopted, America’s net dependence on foreign petroleum peaked at just over 60%. However, by 2017, net petroleum import dependence fell to just 20%, and would have been 27% without the addition of 15.8 billion gallons of domestically produced ethanol to the fuel supply. Last year, ethanol displaced an amount of gasoline refined from 560 million barrels of crude oil—more than the volume imported annually from Saudi Arabia and Venezuela combined.

Ethanol, Ethanol News, RFA