Ethanol Production and Exports Ramp Up

Cindy Zimmerman

Click on image for enlarged version

Ethanol production hit its highest level since January the week ending May 30 while stocks are up slightly and exports are on the rise.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production accelerated 4.6% to an 11-week high of 1.11 million b/d, equivalent to 46.41 million gallons daily. Output was 3.1% higher than the same week last year and 5.3% above the three-year average for the week. The four-week average ethanol production rate scaled up 2.1% to 1.05 million b/d, equivalent to an annualized rate of 16.11 billion gallons (bg).

Ethanol stocks only gained 0.7% to 24.4 million barrels, but that is 6% more than the same week last year and 5.3% above the three-year average. Ethanol exports gained by over 127% to an estimated 150,000 b/d (6.3 million gallons/day).

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

USTR Urged to Improve Access for US Ethanol in India

Cindy Zimmerman

Amb. Greer pictured with the Indian Minister of Commerce and Industry in March 2025

Reps. Randy Feenstra (R-IA) and Adrian Smith (R-NE) and 15 of their colleagues are urging U.S. Trade Ambassador Jamieson Greer to seek improved market access for American agricultural exports of ethanol and distillers’ dried grains with solubles (DDGS) in India.

“The long-term demand opportunity for DDGS alone could be two million metric tons per year valued at $500 million, which would turn into the second largest export market (behind Mexico),” the lawmakers wrote in a letter to Greer. “For ethanol, India is already our 3rd largest export destination at 170 million gallons valued at $393 million, however further reducing existing market barriers would allow for over $400 million of additional exports.”

The lawmakers said they believe increased exports of U.S. ethanol and DDGS to India represent “an easy win for American farmers and will be a terrific way to begin addressing the federal trade deficit through mutually beneficial trade with India.”

This comes as historic advances are made in negotiating a bilateral trade agreement with India, the framework of which was announced by Vice President J.D. Vance and USTR in April. Secretary of Agriculture Brooke Rollins is scheduled to travel to India this year in efforts to continue discussions to open new markets for agricultural exports.

Distillers Grains, Ethanol, Ethanol News, Exports

Iowa Installs New B99 Biodiesel Pump for Fleets

Cindy Zimmerman

IA Ag Secretary Mike Naig participated in the ribbon cutting of the new B99 biodiesel pump

The Iowa Biodiesel Board and Iowa Soybean Association joined Pilot Travel Centers, PepsiCo and Optimus Technologies last week to celebrate the launch of a new B99 biodiesel pump for fleets at Pilot’s Des Moines travel center, making it one of only a handful of stations in the nation dispensing almost pure biodiesel to commercial trucking fleets. The event included remarks from Iowa Secretary of Agriculture Mike Naig, who emphasized the critical role of infrastructure and public-private partnerships in expanding cleaner fuel options.

IBB and ISA contributed $25,000 in soybean checkoff funding to support the project, made possible in part through the Iowa Renewable Fuels Infrastructure Program which helps fuel retailers upgrade their equipment to accommodate higher blends of biofuels. “This B99 pump is a symbol of progress,” said Dave Walton, an Iowa farmer and board member of both IBB and ISA. “It’s proof that when you combine innovation with the right incentives, and partner with companies truly committed to their goals, you can make a big impact.”

Optimus Technologies has developed a fuel system to run on B99 versus standard #2 diesel to help large transportation companies, such as PepsiCo, meet their low-carbon goals. PepsiCo has converted roughly 20 semi-trucks to the new engine technology from Optimus and plans to use the Urbandale Pilot Truck location to refuel the fleet. B99 is a blend of 99 percent biodiesel and 1 percent diesel.

Blends of B20 and higher more than doubled in Iowa’s on-road diesel sales last year, driven by strong state policies and farmer-led investment. Iowa’s comprehensive state biodiesel policies supported that, Kimberley said.

Biodiesel

Iowa Signs Trade MOU With Vietnam for Corn and DDGs

Cindy Zimmerman

The state of Iowa signed five memoranda of understanding (MOUs) this week between the Vietnamese feed industry and private companies from the United States, including two specific to corn and the ethanol co-product distiller’s dried grains with solubles (DDGS) equaling 900,000 metric tons of U.S. corn and 250,000 metric tons of U.S. DDGS.

Iowa welcomed over 50 members of the Vietnamese delegation to the Iowa State Capitol for the signing and remarks were given by H.E. Do Duc Duy, Vietnam Minister of Agriculture and Environment, Mike Naig, Iowa Secretary of Agriculture, and Ralph Lents, Iowa Corn Promotion Board President.

Additionally, the Vietnam government is currently exploring the expansion of its E5 RON92 mandate to all grades of gasoline. This change would mean an additional 200 million gallons of new ethanol demand potential. The Ministry of Industry & Trade, the key policymaker, and regulator for fuel in Viet Nam, is working towards a nationwide E10 mandate for the policy expansion, aiming to finalize a policy decision in 2025.

Iowa Corn, in conjunction with the U.S. Grains Council, has been actively engaged in Vietnam for the past two years as they have evaluated the potential for ethanol in their country. This included hosting a high-level government delegation in Iowa last summer where we were able to showcase the benefits of using ethanol. If Vietnam moves to a nationwide E10 mandate across all grades of gasoline, this will be a huge win for Iowa’s corn farmers.

Distillers Grains, Ethanol, Ethanol News, Exports

Iowa Awaits Governor Decision on Carbon Pipeline Bill

Cindy Zimmerman

Gov. Reynolds at 2023 Iowa RFA Summit

Iowa Governor Kim Reynolds may hold the fate of the state’s ethanol industry in her hands as ethanol advocates and farmers are urging her to veto a bill restricting carbon sequestration pipelines.

“It’s happening. Nebraska is doing it. North Dakota is doing it. Indiana is doing it. Illinois projects are moving forward. Brazil is doing it big time. It’s happening,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw during a press call on the subject last week. “This is not whether or not CCS is going to happen. The question here is whether or not Iowa is going to be left behind and for that reason we also would urge a veto.”

“We have to look at long term survivability of the corn industry. And right now, we’re not doing that with this legislation,” said Iowa corn grower Vic Miller.

Southwest Iowa Renewable Energy (SIRE) CEO Mike Jerke said they plan to invest $45 million to connect to the Colorado-based Tallgrass Trailblazer CO2 pipeline. “Tallgrass is a company that’s been in the pipeline business for a long time, they operate over 10,000 miles of pipe across the United States,” said Jerke. “These pipelines have every kind of service, from natural gas to petroleum to water. One of their pipelines they had deemed to be redundant and that pipeline happened to go from Wyoming through the state of Nebraska. And so they went through a process to repurpose this pipeline to for CO2 duty and because of where SIRE is located, we were able to strike an agreement with them and hook up to their pipe or that is our intent and expectation.”

Jerke says the Iowa legislation could limit their ability to participate. “This limitation is put specifically only on pipelines that are transporting liquid carbon dioxide. The language limits the permits to 25 years,” he said. “The existing language in statute said the maximum was 25 years, but then the death blow is you cannot renew a permit if you’re transporting liquid liquefied carbon dioxide. We cannot renew it, so we’re making a significant investment.”

Listen to their arguments for the governor to veto the legislation here:
Iowa RFA press call on Carbon Pipeline bill 27:27

Audio, Carbon, Ethanol, Ethanol News, Iowa RFA

One Big Beautiful Bill Includes Ethanol and Farm Provisions

Cindy Zimmerman

President Donald Trump’s “One Big, Beautiful Bill” passed in the U.S. House of Representatives Thursday morning on a vote of 215-214, with all Democrats and two Republicans voting against. The bill includes several provisions important to America’s ethanol producers and farmers.

“In addition to extending the 45Z clean fuel production credit by four years, the bill also reinstates crucial tax benefits that will stimulate research, experimentation, and innovation across the ethanol supply chain,” said Renewable Fuels Association President and CEO Geoff Cooper. “As the bill now moves to the Senate, we hope additional improvements can be made to ensure these tax policies truly drive demand growth for American-made renewable fuels.”

Sustainable Aviation Fuel (SAF) Coalition’s Executive Director, Alison Graab, says the bill extends the Clean Fuel Production Credit (45Z) through 2031. “This legislation provides the long-term certainty SAF producers need to scale operations, drive private sector investment, and benefits American farmers and rural economies. Sustainable aviation fuel is a vital solution for advancing U.S. energy dominance, driving rural economic growth, and establishing the United States as a global frontrunner in SAF production.”

American Farm Bureau Federation President Zippy Duvall says the bill “modernizes farm bill programs and extends and improves critical tax provisions that benefit America’s small farmers and ranchers. Updated reference prices will provide more certainty for farmers struggling through tough economic times. Making business tax deductions permanent and continuing current estate tax exemptions will ensure thousands of families will be able to pass their farms to the next generation.”

The bill includes an increase to the estate and gift tax exemption amounts to $15 million per individual and $30 million per couple, adjusted for inflation annually and makes this exemption permanent. Other provisions include a permanent increase to the Section 199A Small Business deduction from 20% to 23%, expanding the limitation on Section 179 from $1 million to $2.5 million, reinstating the 100% bonus depreciation for five years and extending the Federal Disaster Tax Relief Act of 2023.

AFBF, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol is American-Made for Memorial Day

Cindy Zimmerman

With Memorial Day weekend coming up, Renewable Fuels Association Senior Vice President, Industry Relations & Market Development, Robert White reminds us that we have a chance to take a stand against foreign oil and in favor of our country’s energy independence, by choosing ethanol-blended fuel when we travel.

“On Monday, our nation will remember the many men and women whose ultimate sacrifice guaranteed our nation’s freedom and independence. These are values Americans hold dear, and many of us have lost a loved one on the battlefield—making the day personally poignant,” White writes in a Memorial Day blog post on the RFA website.

An important part of our nation’s security is energy independence, and recent polling shows how Americans feel about this. In March, Morning Consult polled nearly 2,000 registered voters. Eighty-five percent of those polled believed it was important for America to be energy independent, and two-thirds of respondents wanted the United States to reduce its reliance on foreign energy sources. When it comes to ethanol, nearly three-quarters said that renewable fuels like ethanol are important to energy security. The top attribute recognized for ethanol was the fact that it was made here in America.

AAA Summer Road Trip

White notes that AAA recently issued two news releases that show the need for more ethanol in our nation’s fuel supply. “On May 12, AAA projected a record number of people would be on the road this coming Memorial Day weekend. Over 45 million people will travel at least 50 miles from home over the Memorial Day holiday period (from tomorrow through Monday). This year’s domestic travel forecast is an increase of 1.4 million travelers compared to last year and sets a new Memorial Day weekend record.”

Three days later, the auto club warned drivers what they had to look forward to: rising gas prices. “Gas prices are creeping back up just in time for the busy summer driving season. The national average for a gallon of regular is up 4 cents from last week, as the price of crude oil rises and demand goes up.” Yes, prices are lower than they have been at this time the past few years, but they are on the rise.

What does ethanol have to do with this? It’s simple: Boosting the nation’s overall fuel supply with lower-cost fuel sources is the best way to keep pump prices in check. And if we’re celebrating a patriotic holiday like Memorial Day, using an American-made fuel like ethanol is the perfect solution.

In the latest Ethanol Report, White noted that E15 is averaging a little over a 7% discount to E10 regular and EPA has approved the continued sale of the fuel through the summer months. “We have a record number of E15 stations across 33 States and we’re excited that we get to sell it through the summer months of June 1 through September 15th,” said White.

Summer E15 - Robert White, RFA 1:05

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RFA CEO to Keynote 2025 Fuel Ethanol Workshop

Cindy Zimmerman

The 2025 International Fuel Ethanol Workshop & Expo (FEW) is being held June 9-11 at the CHI Health Center in Omaha, Nebraska. Now in its 41st year, the FEW keynote address will be given by Geoff Cooper, president & CEO of the Renewable Fuels Association.

Following Geoff Cooper’s keynote address, a panel of industry association leaders will highlight key policy developments, challenges and industry goals. Participants include:

Moderator: Ben Rhodes, Executive Director, Nebraska Ethanol Board
• Brian Jennings, CEO, American Coalition for Ethanol
• Chris Bliley, Senior Vice President, Growth Energy
• Troy Bredenkamp, Senior Vice President, Government & Public Affairs, Renewable Fuels Association

The 2025 FEW promises three days of events, featuring a comprehensive program across four tracks:
Production and Operations: Biological Processes
Production and Operations: Mechanical Processes and Plant Control
Coproducts and Product Diversification
Leadership and Financial Management

Attendees will also have the opportunity to engage with three co-located events, including the Carbon Capture & Storage Summit, the Sustainable Fuels Summit covering SAF, Renewable Diesel, and Biodiesel, and the Ethanol 101 session.

Ethanol, Ethanol News, FEW, Renewable Fuels Association, RFA

Members of Congress Urge President to Set Strong RVOs

Cindy Zimmerman

Members of Congress, led by Reps. Ashley Hinson (R-IA) and Angie Craig (D-MN), sent a letter to President Donald Trump this week, urging the administration to adopt “timely, robust blending requirements in the upcoming “Set 2” rule establishing Renewable Volume Obligations (RVOs) for 2026 and beyond.”

The lawmakers specifically called on President Trump to take the following actions:
– Set implied conventional biofuel RVOs of at least 15 billion gallons.
– Set the biomass-based diesel RVO at 5.25 billion gallons in 2026 and at increasing levels in future years
– Reject abuse of small refinery exemption (SRE) authority and ensure any legitimate SREs have their volumes accounted for in the RVOs to prevent lost demand in key markets for farmers

This is in line with the request a coalition of oil, biofuel and farm groups has sent to EPA.

“With the U.S. Environmental Protection Agency’s proposed rulemaking for RVOs now under review at the White House, this is a critical moment to engage with the administration and make clear what’s at stake—both for the farm economy and for American energy independence,” said Renewable Fuels Association President and CEO Geoff Cooper.

Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik added, “RFS stakeholders are unified in asking EPA to set the 2026 RFS Biomass-based Diesel volume at 5.25 billion gallons, with appropriate growth for 2027 and beyond. That volume will support American agriculture and benefit U.S. consumers with lower fuel prices, more jobs, and increased economic growth.”

The “Set 2” rule setting RVOs for 2026 and beyond is already delayed, and the Environmental Protection Agency recently sent its proposed RVOs to the White House for review.

Also signing the letter were Reps. Adrian Smith (R-NE), Sharice Davids (D-KS), Robin Kelly (D-IL), Mariannette Miller-Meeks (R-IA), Mark Alford (R-MO), Randy Feenstra (R-IA), Nikki Budzinski (D-IL), Dusty Johnson (R-SD), Michelle Fischbach (R-MN), Eric Sorensen (D-IL), Mike Flood (R-NE), Troy Carter (D-LA), Brad Finstad (R-MN), Tracey Mann (R-KS), Derek Schmidt (R-KS), Mike Bost (R-IL), Max Miller (R-OH), Ann Wagner (R-MO), Mark Pocan (D-WI), Shontel Brown (D-OH), Darin LaHood (R-IL), Ron Estes (R-KS), Sam Graves (R-MO), Mark Messmer (R-IN), Julie Fedorchak (R-ND) and Zach Nunn (R-IA).

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E85 Pilot Program In Mexico Shows Positive Results

Cindy Zimmerman

Pictured at an event announcing the successful results of the trial are USGC Ethanol Consultant Conrado Martinez (leftmost), USGC Director in Mexico Heidi Bringenberg (third from right) and USGC Ethanol Consultant Galo Galeana (rightmost).

The U.S. Grains Council (USGC) and the Nuevo León State Ministry of the Environment in Mexico recently conducted a study on the financial and environmental benefits of gasoline blended with 85 percent ethanol (E85).

Ten taxis in Monterrey, Mexico converted to Flex Fuel technology and traveled more than 43,000 miles, using over 1,500 gallons of E85, which resulted in a decrease in operating costs of more than $2 Mexican pesos (MXN) per mile and reducing between 4.9 and 6.4 tons of carbon dioxide equivalent emissions annually per taxi.

“This program showcased the benefits of biofuels for transportation and how they can be a solution for Mexico to reduce polluting emissions,” said Heidi Bringenberg, USGC director in Mexico. “The clear financial and environmental benefits laid out through the trial prove ethanol’s viability and availability in Mexico and beyond.”

Analyses conducted by the Mexican Petroleum Institute (IMP) reinforced the Pilot Project’s results, indicating that E85 use in Tier 1 Flex Fuel vehicles reduces key emissions including carbon monoxide, nitrogen oxides, particulates and toxic compounds including benzene and 1,3-butadiene. These reductions far outweigh the recorded increases in methane, formaldehyde and acetaldehyde.

At the state level, estimates show that with just five percent adoption of E85 in the vehicle fleet, Nuevo León could mitigate 148,000 tons of carbon dioxide annually and generate savings of up to $375 million MXN. E85 is not only a viable alternative fuel but it also is a catalyst for developing a new national agroindustry based on sugarcane and sorghum for bioethanol production.

“I’m eager to see the Mexican energy and transportation sectors react to this study and how it will spur investments in a new agroindustry in the country,” Bringenberg said. “With U.S. agriculture already enjoying a close relationship with Mexico, its top export market, any increase in biofuel consumption translates to significant demand for U.S. producers to meet.”

E85, Ethanol, Ethanol News, Exports, USGC