Ethanol and DDGS Exports Drop in August

Cindy Zimmerman

U.S. ethanol exports dropped ten percent in August but still remained above 100 million gallons, according to the latest RFA Trade Monitor report. Ethanol exports totaled 102.3 million gallons in August, with Canada as our largest destination for the 29th consecutive month with exports of 62.4 mg, just 0.2% shy of last month’s record, accounting for nearly two-thirds of total August sales.

Exports to the United Kingdom pared back 19% to 13.5 mg. Colombia increased its U.S. imports by 151% to 10.7 mg, the largest monthly volume in almost 3 years. Shipments to the European Union dropped 24% to 5.4 mg, the lowest imports this year. Essentially all remaining ethanol exports were destined for Peru (4.5 mg), Mexico (2.1 mg), Singapore (2.0 mg), and Jamaica (1.3 mg). Brazil and India again were notably absent from the market. Year-to-date ethanol exports total 920.5 mg, which lags 7% behind last year at this time.

The U.S. imported 10.5 mg of undenatured ethanol from Brazil and minimal gallons of denatured ethanol from Austria and France. This was the first month of substantive imports recorded in 2023.

Exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, eased 5% to 947,326 metric tons (mt). A quarter of shipments landed in Mexico (234,674 mt, up 27% from July), our largest DDGS market for the 14th consecutive month. Exports to Vietnam lifted for the 7th consecutive month, up 6% to 131,232 mt. DDGS exports to Indonesia tightened 28% (87,015 mt), but South Korea sales rebounded 29% (83,425 mt), and Morocco purchased record volumes (59,367 mt). Rounding out our top ten customers in August were Canada (59,097 mt), New Zealand (30,799 mt), Colombia (28,887 mt), Taiwan (28,832 mt), and China (27,298 mt). Year-to-date U.S. DDGS exports total 7.06 million mt, which lags 9% behind last year at this time.

Distillers Grains, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Washington Clean Fuel Standard Reports 1st Quarter Results

Cindy Zimmerman

The Washington Clean Fuel Standard recently released its first-quarter results for the number of credits generated by alternative low-carbon fuels, demonstrating the program’s commitment to reducing carbon emissions, supporting local economies, and fostering a unified market for biomass-based diesel on the West Coast.

During the first quarter of 2023, the program solidified its role in the race to meet carbon reduction goals, joining California and Oregon in promoting the use of increasingly higher blends of biomass-based diesel. Preliminary data shows that biodiesel and renewable diesel contributed around 22% of the credits indicating an approximate 1.2% blend rate. In comparison, when California first implemented its Low Carbon Fuel Standard, the state saw a blend rate of 0.4% for biodiesel and renewable diesel in the first year.

Jeff Earl, Director of State Governmental Affairs for Clean Fuels Alliance America, said they are impressed by the impact of the Washington Clean Fuel Standard and they look forward to watching the program build on its first-quarter success. “These results show that our fuels are the low-cost option for immediate decarbonization of the heavy-duty transportation sector in the state of Washington.”

Replicating California’s Low-Carbon Fuel Standard, Washington adopted their own Clean Fuel Standard in 2021 in an effort to reduce carbon intensity in the transportation sector, the state’s largest source of greenhouse gas emissions. Implemented on January 1, 2023, by the Washington Department of Ecology, the program provides credits for a range of low-carbon fuel alternatives that improve air quality and stimulate economic growth while strengthening the state’s position as a leader in sustainable energy practices.

Biodiesel, biofuels, Clean Fuels Alliance

Group Finds GOP Candidates Support Year Round E15

Cindy Zimmerman

An Iowa biofuels coalition reports unanimous support among all Republican presidential candidates for consumer access to year-round E15 and opposition to electric vehicles (EV) mandates.

“All the active candidates in Iowa agree that consumers deserve choices in how the vehicles they drive are powered,” said Biofuels Vision 2024 Executive Director Logan Shine. “Folks don’t want to be forced into an EV and they want more fuel options like E15 at the pump. Biofuels Vision will continue to engage candidates on additional issues important to biofuels and the over 50,000 Iowa jobs supported by biofuels production.”

Currently, all Republican candidates who are actively campaigning in Iowa have voiced support for a permanent, national year-round E15 fix allowing consumers choice at the pump. Additionally, all candidates have agreed they oppose laws and regulations that directly or indirectly mandate an EV-only future.

Biofuels Vision 2024 is a coalition of Iowa organizations and citizens who are committed to educating candidates in both parties about the importance of renewable fuels to Iowa and other Midwest states across the Midwest. The coalition is tracking candidates’ stances on eight issues vital to the future of biofuels.

Biodiesel, biofuels, Ethanol, politics

ACE Promotes HBIIP and E15 at NACS

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is rounding out its 2023 petroleum marketer trade show season this week in Atlanta at the National Association of Convenience Stores (NACS) show, the world’s largest annual gathering of convenience and fuel marketing professionals.

Ashley Borchert, Ron Lamberty, and Anna Carpenter staff the ACE booth at NACS

ACE Chief Marketing Officer Ron Lamberty says their presence at these shows provides answers to prospective higher-blend ethanol marketers’ questions about infrastructure compatibility, best practices for marketing E15 and E85, and USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) and its application process. “We’ve been helping retailers apply for and receive grants since HBIIP’s inception and we continue to promote the funding through our retailer website and paid media as the program evolves,” said Lamberty. “Working directly with HBIIP applicants also provides experiences we share with USDA following each application period, in an effort to reduce challenges for marketers and increase their participation in future rounds.”

After the latest slate of funding designated for USDA’s HBIIP under the Inflation Reduction Act was announced, ACE updated its retailer-focused website flexfuelforward.com to easily direct prospective E15 and flex fuels retailers to information about applying for and obtaining part of the $90 million in HBIIP grants now offered each calendar quarter for five quarters beginning July 1, 2023 and ending September 30, 2024.

Earlier this year, ACE traveled to other trade shows, including the Western Petroleum Marketers Association (WPMA) in Las Vegas, Midwest Petroleum and Convenience Tradeshow (M-PACT) in Indianapolis, Pacific Fuels and Convenience Summit (pfcs) in San Diego, and others. ACE’s presence at these shows provides answers to prospective higher-blend ethanol marketers’ questions about infrastructure compatibility, best practices for marketing E15 and E85, and USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) and its application process.

ACE, Ethanol, Retailers

Ethanol Remains Top Priority for Corn Growers

Cindy Zimmerman

Ethanol remains a top priority for the National Corn Growers Association, as Minnesota farmer Harold Wolle, takes over as president of the organization this week.

During a press conference Tuesday, Wolle talked about his goals over the next year, including support of the Next Generation Fuels Act in the House and Senate while making ethanol a go-to biofuel in the aviation sector. “First off, we need to get year-round E15 approved,” said Wolle. “Our marketers need to have the reassurance that they’re going to be able to market that year round. We’ve seen a tremendous increase in consumer demand for E15.”

Wolle sees sustainable aviation fuel (SAF) as a bit farther into the future but a big opportunity for corn. “If we work to get our carbon scores for our ethanol plants and our farms down we will have ethanol with a low enough carbon score that it will be possible to do ethanol-to-jet and I think that’s a phrase you’re going to hear a lot more in the future.”

“My theme as president is ‘shaping the Future,’ and nothing shapes the future like effective advocacy,” Wolle said. “And no other group does advocacy as well as our state corn grower groups and NCGA.”

Listen to Wolle’s press conference here:
New NCGA president Harold Wolle 20:32

Audio, corn, Ethanol, Ethanol News, NCGA

California Continues to Stall E15 Approval

Cindy Zimmerman

The Renewable Fuels Association is urging California to catch up with the rest of the country and finally allow sales of 15% ethanol fuel (E15).

In a letter to the California Air Resources Board, RFA President and CEO Geoff Cooper called on the agency to expeditiously approve the use of cleaner-burning, lower-carbon E15.

“California is woefully—and inexplicably—behind the rest of the nation when it comes to adopting a simple change to liquid fuel regulations that reduces both harmful tailpipe pollutants and GHG emissions from liquid-fueled light-duty vehicles,” Cooper wrote. “While CARB has taken some initial steps toward approval of E15, the process has been impaired by numerous delays, uncertain timelines, and a general lack of emphasis or prioritization from CARB leadership. All of the required testing and analysis on E15 has been completed and submitted to CARB; yet, the agency appears to be purposely ‘slow-walking’ the approval process.”

RFA noted that California is one of only two states in the country that still do not allow the use of E15, the other being Montana, and the state’s failure to approve the fuel has caused unnecessary increases in greenhouse gas emissions and tailpipe pollution linked to smog, as well as higher prices at the pump for California consumers.

Cooper also noted that CARB’s continued failure to allow the use of E15 clearly contradicts the scope and purpose of the waiver California has historically received from the Clean Air Act’s preemption provisions. California has historically received a waiver from the Clean Air Act’s preemption clause because the state’s air pollution regulations have been “at least as protective” as federal standards. RFA argued that “…CARB’s current gasoline regulations are less protective of public health and welfare than the federal standards that allow for E15 consumption in all light-duty vehicles built since 2001.”

Carbon, Ethanol, Ethanol News, Renewable Fuels Association, RFA

B100 Powers Vehicles With Near-Zero Emissions in California

Cindy Zimmerman

Diesel engine decarbonization company Optimus Technologies has announced that Valley Pacific Petroleum Services Inc. recently became the first fleet in California operating Optimus Technologies/B100 powered class 8 vehicles under a California Air Resources Board (CARB) executive order.

According to the National Renewable Energy Laboratory, vehicles using B100 instead of petroleum diesel reduce carbon dioxide emissions by over 95%. Data from the DOE’s Argonne National Laboratory indicates that total lifecycle carbon emissions from B100 powered vehicles are considerably less than electric (BEV) and hydrogen (FCEV) solutions.

Nathan Crum, President and CEO of Valley Pacific said, “We are thrilled to be the first fleet in California using Optimus Technologies’ bolt-on advanced fuel system to run near-zero carbon emissions vehicles powered by B100. The ability to use B100 in heavy-duty vehicles will accelerate the growth of biomass-based clean fuels in California leading to fewer emissions and cleaner air. The positive experiences shared by the companies and municipalities in other states already using Optimus Technologies/B100 made our decision to upgrade part of our fleet, an easy one.”

Optimus Technologies/B100 is already in use at scale with leading private and municipal fleets.

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Biodiesel

Trump Stresses Support for Ethanol in Iowa

Cindy Zimmerman

Former President Donald Trump spent Sunday in Iowa talking to farmers about what his administration did for them and what he hopes to do for them in a second term.

From trade deals to WOTUS to ethanol, Trump touted his support of farmers during a speech in Ottumwa. “The American farmer is a big deal,” said Trump. “I will remain the champion of American farmers with four more years in the White House.”

Trump spent a lot of time criticizing the Biden administration push for electric vehicles. “When I’m back in the White House, I will save Iowa ethanol by repealing Joe Biden’s absolutely insane, job-killing, electric vehicle mandate on day one,” he said.

After his speech, Trump stopped at a nearby farm and signed a John Deere combine.

Donald Trump speech Ottumwa, Iowa 39:53

Audio, Ethanol, Ethanol News, politics

Nebraska Fuel the Cure Starts October 1

Cindy Zimmerman

The Nebraska Ethanol Board, Renewable Fuels Nebraska, and participating retails stations are once again teaming up in October to Fuel the Cure and fund breast cancer research.

For every gallon of higher ethanol blend sold between Oct. 1-31, nearly 50 Nebraska fuel retailers will donate 3 cents toward cancer research and services within the state. Participating retailers supporting the cause will be sporting the pink Fuel the Cure signage at the pump, on the windows, and at the counter.

Since 2018, Nebraska’s Fuel the Cure campaigns have raised over $45,000 for cancer research, primarily benefiting the Fred & Pamela Buffett Cancer Center in Omaha. “This distinguished institute plays a pivotal role in shaping cancer care, research, and education in Nebraska, the region, and the world,” said Jessica Sodeke, Nebraska Ethanol Board’s communications and outreach manager.

By choosing ethanol blends at the pump, you’re not only driving cleaner but also contributing to the fight against cancer. For more information about the benefits of ethanol, participating locations, and how your fill-up supports cancer research, visit FueledbyNebraska.com/pink.

Ethanol, Ethanol News

NCGA Calls on Members to Comment on CAFE Standards

Cindy Zimmerman

The National Corn Growers Association (NCGA) this week called on its members to urge the National Highway Traffic Safety Administration to provide a level playing field for biofuels such as ethanol by submitting comments on the agency’s proposed increase in the Corporate Average Fuel Economy (CAFE) standard.

NHTSA has proposed that the CAFE standard, which regulates how much fuel a vehicle consumes per mile, would increase for small cars and light trucks from 44 to 58 miles per gallon by 2032. NCGA leaders say the proposed standard ignores solutions that are available now.

“The proposal sets an unattainable goal and a concerning precedent,” said NCGA President Tom Haag. “As a result, auto manufacturers will be forced to overlook viable solutions, such as high-octane biofuels like corn ethanol, as they rush to meet these standards. This would significantly minimize the role biofuels play in reducing greenhouse gas emissions and saving consumers money at the pump.”

Haag says this proposed rule largely mirrors the recent tailpipe emissions proposal from the Environmental Protection Agency and it is important to have a strong showing from those who understand the role biofuels can play in emissions reduction.

NHTSA will hold a hearing later this week where it will accept public comments on the proposed standard. The comment period closes October 16, 2023.

biofuels, corn, Ethanol, Ethanol News, NCGA