Report Finds Opportunities for Ethanol and DDG Exports

Cindy Zimmerman

A new report from USDA’s Economic Research Service (ERS) says an increase in global ethanol mandates is creating additional export opportunities for the U.S. ethanol industry, but it depends on the ability to increase production and keep those markets open.

According to Global Ethanol Mandates: Opportunities for U.S. Exports of Ethanol and DDGS, 26 countries have implemented blending mandates since 2010. “If these countries actively strive to fulfill their mandates, strong export market opportunities for U.S. ethanol could be possible, assuming that the United States can sufficiently expand production,” the report states.

Currently, the United States has more than 50 export destinations for DDGS and more than 70 for ethanol, thus opportunities might be found. However, trade barriers hamper current exports, and may limit them in the future. Many countries promote policies designed to utilize their own domestic production and import only a small amount. If major markets continue to block trade, export opportunities could be limited.

The report notes that large-scale production of cellulosic-based ethanol could allow the United States to meet future global export opportunities for corn, corn-based products, and ethanol.

Link to report.

Distillers Grains, Ethanol, Ethanol News, Exports, USDA

Iowa Fighting to Protect RFS

Cindy Zimmerman

Senator Joni Ernst (R-IA) met with Environmental Protection Agency (EPA) Administrator Scott Pruitt Tuesday to express her concerns over the agency’s recent action to potentially lower biodiesel volumes in the Renewable Fuel Standard (RFS) for 2018 and 2019.

After the meeting, Sen. Ernst said that while Pruitt has “insisted that the recent actions taken by the EPA are simply to receive additional input on the RFS from stakeholders, it is evident that the ‘stakeholders’ he refers to are not the farmers and manufacturers” of biodiesel.

“Our meeting today was another clear demonstration that biofuel-producing states will never stop fighting to protect the RFS. Administrator Pruitt again claimed today that he will not do anything to undermine the program. However, we have heard this before. We now need to see it. I will continue to work with the EPA, but they must prove to the agricultural community who put their faith in this administration that they will fulfill their promise to maintain the letter and the spirit of the RFS. We will not accept anything less.”

Iowa Senator Chuck Grassley also met with Pruitt on Tuesday with the same message and today Governor Kim Reynolds is joining the Iowa Renewable Fuels Association, Iowa Biodiesel Board, and Iowa farmers to discuss the threat recent EPA proposals pose to the future of the biofuels industry. The event will be webcast live from Two Rivers Cooperative in Pella at 1:30 central time.

Biodiesel, biofuels, Ethanol, Ethanol News

Pink at the Pump Campaign Grows

Cindy Zimmerman

Missouri is now part of the Pink at the Pump™ campaign against breast cancer as Hometown Fuel across the Iowa border in Mercer joined the cause last week. The annual campaign is now active in six states – Iowa, Missouri, Illinois, Arkansas, Texas, and Virginia.

Pink at the Pump™ is a partnership between Iowa Renewable Fuels Association (IRFA), Iowa Corn Promotion Board, National Breast Cancer Foundation, The Hormel Institute, and fuel retailers to raise money for breast cancer research, early detection, and support services and increase consumer awareness of the benefits of E15. At participating retail stations, three cents of every gallon of E15 sold during the month of October will be donated to The Hormel Institute and National Breast Cancer Foundation.

“Participating in Pink at the Pump™ is a great way for motorists to learn about all the many environmental and economic benefits of E15,” said IRFA Managing Director Lucy Norton. “E15 reduces cancer-causing chemicals and greenhouse gas emissions, making it truly the cleanest fuel choice on the market for all 2001 and newer vehicles. It is also a smart buy at a lower cost with a higher octane rating.”

To find a participating Pink at the Pump™ station and learn more about the promotion, click here.

Ethanol, Ethanol News

Senators and Governors Urge Support for RFS

Cindy Zimmerman

On Monday, four governors wrote to President Trump, and 34 senators sent a letter to EPA Administrator Scott Pruitt, both expressing concerns about proposed changes to the Renewable Fuel Standard (RFS).

Governors Kim Reynolds of Iowa, Dennis Daugaard of South Dakota, Eric Greitens of Missouri and Sam Brownback of Kansas urged the president to keep his promises to rural America to support the RFS.

“The renewable fuels industry in our states—and others—is poised to grow if the EPA sends positive and consistent market signals through increases in the required volumes. That will enhance America’s energy security, value-added agriculture and rural economic prosperity. We urge you to continue to fulfill your promises, to continue your support for all biofuels under the RFS and to continue to put America first,” the governors write.

“We commend the governors for holding our federal government accountable to the law, and we join them in calling on the Administration to ensure that the EPA stays true to the president’s promises for a strong RFS,” said Growth Energy CEO Emily Skor in a statement.

The senators, led by Roy Blunt (R-Mo.), Heidi Heitkamp (D-N.D.), Chuck Grassley (R-Iowa) and Patty Murray (D-Wash.), specifically addressed proposed volume levels of biomass-based diesel and advanced biofuel.

“Reducing volumes—and especially those [Renewable Volume Obligations] RVOs that were previously finalized—is disruptive, unprecedented and very troubling,” the senators write. “These volumes do not meet actual biodiesel production capacity in the United States, and could have a negative impact on jobs and economies in rural communities across the nation.”

The National Biodiesel Board (NBB) agrees. “EPA should seek comment on factors that warrant HIGHER advanced biofuel and biomass-based diesel volumes in order to achieve Congress’s goals of diversifying our fuel supply, supporting rural jobs and enhancing U.S. energy security. Instead, the recent request for comment from EPA flaunts these objectives—with the potential to eradicate jobs and bankrupt farmers,” said NBB COO Doug Whitehead.

EPA recently released a request for additional comments on reducing previously finalized volumes under the RFS program and on using waiver authorities to further reduce biodiesel volumes.

Biodiesel, EPA, Ethanol, Growth Energy, NBB

ACE Hosts Latin America Trade Team

Cindy Zimmerman

A trade team from Latin America is on an ethanol tour this week sponsored by the U.S. Grains Council (USGC), which included a visit to the Sioux Falls, South Dakota office of the American Coalition for Ethanol (ACE) Monday morning.

The schedule for the group included several other stops in South Dakota, visiting an ethanol plant, a livestock farm to see the ethanol co-product distillers dried grains (DDGs) being used in feed rations, a farm where they deploy practices to produce zero-carbon corn, and a retail fuel station that markets higher ethanol blends.

ACE Senior Vice President Ron Lamberty shared his ethanol market expertise with the tour group which includes representatives from Panama, Colombia, Costa Rica, Peru, Paraguay and Uruguay.

ACE, Ethanol, USGC

Study of RINs and Retail Gas Prices Finds No Relationship

Cindy Zimmerman

A new study by Informa Agribusiness Consulting finds that prices of the Renewable Identification Number (RINs) credits used for RFS compliance have not caused changes in retail gasoline prices

The analysis, commissioned by the Renewable Fuels Association (RFA), looked at trends in the prices for conventional biofuel RINs and retail gasoline from 2013 to the summer of 2017.

“Based on statistical analysis, it can be concluded that changes in RIN prices did not ‘cause’ the changes that occurred in retail gasoline prices in 2013, and this has continued to be the case through the summer of 2017,” according to Informa Agribusiness Consulting. Instead, the price of retail gasoline has been primarily driven by movements in crude oil prices and by changes in the spread between domestic and international crude oil prices, as well as seasonal demand, the analysis found.

RFA President and CEO Bob Dinneen says the analysis shows that the EPA’s proposal to lower total Renewable Fuel Standard (RFS) would lower the price of RINs, but not prices at the pump. “If finalized, however, these proposals will have a decidedly negative impact on the U.S. ethanol industry by artificially cannibalizing demand,” said Dinneen. “If the intent is to lower the price of RINs, EPA should consider expanding ethanol demand by empowering consumers to utilize higher level ethanol blends. After all, ethanol is less expensive than gasoline today and RINs attached to each gallon of ethanol purchased from a producer are free.”

Click here to read the Informa Agribusiness Consulting analysis.

Ethanol, Ethanol News, RFA, RFS, RINS

Celebrating National Farmers Day

Carrie Muehling

The Renewable Fuels Association (RFA) is among organizations celebrating Oct. 12 as National Farmers Day. RFA honors farmers for providing food, fuel and fiber for the nation and the world.

According to new monthly U.S. Department of Agriculture estimates issued today, America’s farmers are forecast to produce 14.28 billion bushels of corn for the 2017/2018 marketing year, up 96 million bushels from last month. Additionally, farmers are estimated to have a corn yield of 171.8 bushels per acre, up 1.9 bushels from the September forecast. If realized, these would be the second highest U.S. corn production and yields on record.

Last year, the U.S. ethanol industry used 5.43 billion bushels of corn, valued at $18.8 billion, to make 15.3 billion gallons of ethanol and 42 million metric tons of animal feed. Ethanol and agriculture continue to work hand in hand, helping to fuel and feed the world.

“Ethanol provides a vital value-added market for corn and other commodities, providing an economic boost to rural America,” said Renewable Fuels Association President and CEO Bob Dinneen. “Meantime, ethanol is helping to clean the air, reduce our reliance on petroleum, boost local economies and lower prices at the pump. Tremendous increases in the productivity of U.S. farmers have ensured ample supplies of grain are available for food, feed and fuel. Farmers touch every part of our lives and today, we give thanks for National Farmers Day.”

AgWired Energy, Renewable Fuels Association

Corn Farmers Promoting American Ethanol in Talladega

Cindy Zimmerman

Corn growers from around the country are heading to Alabama this weekend to promote American Ethanol at “The Big One” in Talladega.

The National Corn Growers Association (NCGA) is partnering with corn farmers in Alabama, Kansas, Iowa and Michigan – to promote E15 American Ethanol all weekend in the popular Fan Zone exhibit area, nearby campgrounds, on-track signage, the pavement in pit road and the in-house video system.

“Corn Growers partnered with Growth Energy under the American Ethanol banner to spread the positive benefits of E15 and higher ethanol blends. Since 2011 drivers on all three of NASCAR’s racing series have completed more than 10-million miles on E15,” said Don Glenn, NCGA board member and farmer from Hillsboro, Alabama. “And E15 has worked seamlessly in these high performance engines. Today, a growing number of consumers are seeking this American-made fuel at the pump because they have seen how well it works for the world’s best drivers.”

Corn farmers will hand out American Ethanol starter flags as fans arrive and those who fly their green flag over the race weekend will receive promotional items, including E15 T-shirts to continue promoting ethanol long after the roar of the race has concluded. Fans will also have the opportunity Saturday morning, October 14, to meet American Ethanol No. 3 Chevy driver Austin Dillon at the exhibit in the Fan Zone.

American Ethanol is also the sponsor of the Saturday night infield concert featuring country star Colt Ford.

American Ethanol, corn, Ethanol, Growth Energy, NASCAR

FS FAST STOP Retailers Registered as TOP TIER™ Diesel Fuel Sites

FS FAST STOP locations are among the first to become registered TOP TIER™ Diesel Fuel sites under a program developed by leading diesel equipment manufacturers who recognized the benefits of additized diesel fuel in their engines.

The TOP TIER program, originally launched in 2004, focused on gasoline standards before introducing a diesel fuel standard this September. FAST STOP locations featuring Dieselex® Gold are among the first retailers to earn the new certification.

“We strive to provide the best fuel standard in the industry by not only meeting, but exceeding, the new TOP TIER Diesel Fuel standards,” said Curt Dunafin, GROWMARK energy services manager. “Additional performance benefits of Dieslex Gold include: cleaning up dirty engines, controlling moisture, faster starts, lower emissions, and extending storage stability.”

In this interview, Dunafin talks about why quality diesel fuel is important, especially with new engine efficiencies.

Interview with Curt Dunafin, GROWMARK Energy

AgWired AgNewsWire, AgWired Energy, Audio, Energy, FS System, GROWMARK

Student Scientists Offered Scholarships for Biodiesel Conference

Cindy Zimmerman

The National Biodiesel Board (NBB) is offering scholarships for students interested in attending the National Biodiesel Conference & Expo, Jan. 22 – 25 in Fort Worth, Texas.

Applications are now being accepted for no cost registration, travel scholarships, biodiesel poster presentations and even a shot at the podium is open for members of the Next Generation Scientists for Biodiesel. The application deadline is November 19.

About 30 students attended the 2017 conference from schools including Missouri University of Science and Technology, Clemson University, University of Iowa, and New Castle University in the United Kingdom.

The National Biodiesel Board, U.S. Department of Agriculture Biodiesel Education Program, United Soybean Board and the National Biodiesel Foundation sponsor the scholarships, which amount to a $1,200 conference registration and a $600 travel reimbursement.

Biodiesel, Biodiesel Conference, NBB