CoBank: Exports Key to Ethanol Industry Growth

Cindy Zimmerman

The export market still offers the most promising opportunity to drive U.S. ethanol demand in 2025, according to a new report from CoBank’s Knowledge Exchange.

“Ethanol used for higher level blends is expected to increase annually in the U.S., but it constitutes only a small portion of overall ethanol demand due to the market’s size,” said Jacqui Fatka, farm supply and biofuels economist with CoBank. “And without significant investments in infrastructure that enable retailers to change pumps or signage, nationwide E15 sales won’t dramatically move the needle in the near-term. Currently, the best opportunity to increase demand in 2025 remains in the export market.”

U.S. ethanol exports hit record high levels in 2024 with 1.91 billion gallons of ethanol exported at value of $7.5 billion but policy uncertainty continues to cloud the market outlook.

Canada has been the top destination for U.S. ethanol in both volume and value for the last four years. While Canada has a national blending mandate of 5% ethanol in gasoline, several provinces require higher rates. Ontario’s mandate will rise to 11% in 2025 as it continues toward its goal of reaching E15 by 2030. But the potential for trade disputes or changes in Canada’s government loom large and could disrupt the flow of U.S. ethanol into Canada.

Read the report.

Ethanol, Ethanol News, Exports

Brooke Rollins Confirmed as Agriculture Secretary

Cindy Zimmerman

Brooke Rollins of Texas was confirmed as the 33rd Secretary of Agriculture Thursday by a vote of 72-28.

Rollins served in Trump’s previous administration as acting director of the Domestic Policy Council and oversaw the White House Office of American Innovation. She since co-founded and served as president and chief executive officer of the America First Policy Institute. She has a degree in agricultural development from Texas A&M University and a law degree from the University of Texas at Austin.

Renewable Fuels Association President and CEO Geoff Cooper says they look forward to working with her on ethanol issues. “Throughout the confirmation process, we were encouraged to hear Secretary Rollins state that renewable fuels like ethanol will be big part of President Trump’s energy dominance strategy and that she will defend and elevate all sources of American-made energy,” said Cooper. “At a time when the farm economy is struggling, we encourage Secretary Rollins to use all of the tools in USDA’s toolbox to open and expand markets for ethanol and its valuable co-products. Indeed, the best way to boost rural America is to boost renewable fuels, and we are confident Secretary Rollins will continue USDA’s legacy of supporting this quintessential American industry.”

American Coalition for Ethanol (ACE) CEO Brian Jennings also offered his congratulations. “We congratulate Brooke Rollins on her confirmation to lead USDA and look forward to working with her on our priority issues, including advancing our USDA RCPP projects aimed at ensuring farmers and biofuel producers get properly rewarded for sustainable farming practices under clean fuel programs and tax incentives such as the 45Z Clean Fuel Production credit. As 45Z guidance is finalized by the Trump Treasury, we will encourage Secretary Rollins to leverage USDA’s guidelines for crops used as biofuel feedstocks to help maximize opportunities for farmers and ethanol producers,” said Jennings. “We will also engage USDA on promoting further biofuel infrastructure funding opportunities for E15 and E85, as well as strengthening existing export and new SAF market opportunities.”

ACE, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Iowa Ethanol Production Holds Steady in 2024

Cindy Zimmerman

According to the Iowa Renewable Fuels Association, ethanol production in the state held steady last year at 4.6 billion gallons.

IRFA Executive Director Monte Shaw says stagnant U.S. ethanol demand combined with increasing corn yields have resulted in lower farm income, but he believes new ethanol markets are within reach that can restore balance to the corn market.

“We need to build corn demand, and the near-term growth solution is to secure nationwide, year-round E15,” said Shaw. “Corn production keeps growing but ethanol production has leveled off over the last four year as the 2024 production numbers reflect. The result has been the largest two-year drop in farm income ever. The good news is we have potential new markets to drive demand for corn and to restore farm income. Start with E15 at home, go after low-carbon export markets, and eventually take to the skies with sustainable aviation fuel.”

Total U.S. ethanol production was more than 16 billion gallons in 2024, with Iowa producing almost 30 percent.

The IRFA compiled production information from an industry survey, public reports and other industry sources.

Ethanol, Ethanol News, Iowa RFA

Unleaded 88 Sales In MN Reach New Record In 2024

Cindy Zimmerman

MN Biofuels image

Sales of 15% ethanol fuel – Unleaded 88 or E15) hit a new record high in Minnesota last year with 142.75 million gallons sold, an increase of 11.63 percent from the previous record of 127.87 million gallons in 2023, according to the Minnesota Bio-Fuels Association.

“For four years running, annual statewide Unleaded 88 sales have surpassed the previous year’s baseline, and we are excited to announce that 2024 was another record-setting year in the North Star State. With over 500 stations now offering this 15 percent ethanol blend that is more affordable and more environmentally friendly, it is easier than ever to support Minnesota’s farmers and rural communities at the pump,” said Brian Werner, executive director of the Minnesota Bio-Fuels Association.

Data from the Minnesota Department of Commerce shows Unleaded 88 had an average price discount of 17 cents per gallon to regular 87 octane fuel in 2024.

Last year, Minnesota became the first state in the nation to have over 500 Unleaded 88 stations and as of February 12, there are 512 stations.

E15, Ethanol, Ethanol News

2025 Marks 30th National Ethanol Conference

Cindy Zimmerman

The ethanol industry will be getting “Back to Our Roots” in 2025 with the Renewable Fuels Association’s 30th annual National Ethanol Conference, taking place in Nashville February 17–19.

RFA President and CEO Geoff Cooper says the theme “Back to Our Roots” was chosen to reflect the ethanol industry’s humble beginnings, its incredible growth, and its enduring ties to American agriculture. “So part of our time at the conference will be spent looking back and reflecting on the success of the industry and what it has done to transform agriculture and our energy sector,” said Cooper.

Since 1996, NEC has been the nation’s most widely attended executive-level conference for the ethanol industry, where sessions featuring globally renowned speakers are interspersed with numerous networking opportunities to help the industry connect and collaborate. Last year in San Diego, RFA hosted nearly 900 industry stakeholders, hailing from 36 states and 20 other countries.

Click here for more information and to register, and learn more about the conference in this interview with Cooper.

RFA CEO Geoff Cooper, NEC preview (4:36)

Audio, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

Larson Engineering Acquires Fagen Engineering

Cindy Zimmerman

Larson Engineering, Inc. announces the acquisition of Fagen Engineering, LLC, the engineering arm of construction company Fagen, Inc., marking a significant milestone in its strategic growth initiative.

The acquisition strengthens Larson’s position in industrial engineering, specifically in the growing ethanol and biofuel sector, and represents a key component of the company’s ambitious ten-year strategic plan aimed at achieving 25 percent revenue growth.

Larson Engineering, which is 100 percent employee-owned, is retaining all of Fagen Engineering’s employees and maintaining existing office leases in Granite Falls, Minn., within the Fagen, Inc. headquarters, and Greenville, S.C., ensuring continuity for current clients while expanding its national presence.

The acquisition stemmed from Larson’s more than 20-year working relationship with Fagen Engineering and Fagen, Inc., as well as interest in the team’s specialized ethanol and biofuel plant and carbon capture expertise.

As the ethanol industry leading design builder, Fagen, Inc. and Fagen Engineering have been involved in the development or installation of more than 90 facilities for original build, expansion or enhancement projects.

Read more about the acquisition.

Ethanol, Ethanol News

Trump Talks Ethanol With Japan

Cindy Zimmerman

President Trump wants to supply Japan with U.S. ethanol.

During a press conference with Trump, Japanese Prime Minister Shigeru Ishiba said his country is interested in importing … “bioethanol, ammonia and other resources” which could help reduce the U.S. trade deficit with Japan.

“I want to just say that, on the ethanol, Iowa is going to be very happy. Nebraska, all of our farm states are going to be very happy,” said President Trump. “They want ethanol and we’ll be able to provide it. To our farmers, who I like and they like me, I think they’re going to be very, very happy.”

Last year, Japan announced a goal of blending 10% ethanol by 2030 and 20% by 2040.

Listen to Trump’s comments here:
Pres. Trump on ethanol to Japan (:40)

Audio, Ethanol, Exports, International, Trade

Biofuels Champions Urge Zeldin to Support RFS, E15

Cindy Zimmerman

Biofuels supporters in Congress sent a letter to newly-confirmed EPA Administrator Lee Zeldin encouraging him to issue timely guidance to fulfill the Renewable Fuels Standard (RFS) and support year-round sales of E15 nationwide.

The bipartisan letter was led by Representatives Adrian Smith (R-NE) and Angie Craig (D-MN), co-chairs of the Congressional Biofuels Caucus, and included nearly 30 colleagues. “Under your leadership, we request the EPA put the RFS back on track by providing a path for growth for all biofuels and rejecting proposals to undermine the statute and destabilize the market,” they wrote to Zeldin. “Additionally, EPA must eliminate decades-old regulatory barriers to growth so all retailers in all 50 states can offer E15 year-round if they so choose. E15 lowers gas prices for consumers, creates new markets for our farmers and helps reduce our energy dependence from foreign countries.”

Signers of the letter include: Reps. Mark Alford (R-MO), Don Bacon (R-NE), James Baird (R-IN), Mike Bost (R-IL), Nikki Budzinski (D-IL), Sharice Davids (D-KS), Ron Estes (R-KS), Randy Feenstra (R-IA), Brad Finstad (R-MN), Michelle Fischbach (R-MN), Mike Flood (R-NE), Sam Graves (R-MO), Ashley Hinson (R-IA), Dusty Johnson (R-SD), Marcy Kaptur (D-OH), Robin Kelly (D-IL), Darin LaHood (R-IL), Kristen McDonald Rivet (D-MI), Mark Messmer (R-IN), Max Miller (R-OH), Mariannette Miller-Meeks (R-IA), Zachary Nunn (R-IA), Mark Pocan (D-WI), Derek Schmidt (R-KS), Eric Sorensen (D-IL), and Derrick Van Orden (R-WI).

E15, EPA, Ethanol, Ethanol News

RFA Reports 2024 Ethanol and Distillers Grains Exports

Cindy Zimmerman

New statistical reports released this week by the Renewable Fuels Association show ethanol export volume and overall export value hit record highs last year.

According to the reports, the value of the U.S. ethanol industry’s exports rose to a peak of $7.5 billion in 2024, fueled by a record 1.91 billion gallons of ethanol exported in 2024. Meanwhile, distillers grains shipments registered at 12.2 million metric tons, the second highest ever.

“2024 proved to be a terrific year for exports of renewable fuels and coproducts as the entire world saw the value of these American-made goods,” said RFA President and CEO Geoff Cooper. “Our industry’s export sales made a remarkably positive contribution to the U.S. trade balance, while boosting farm incomes and supporting communities across rural America. As countries around the globe embrace ethanol as a low-cost solution for improving air quality and reducing carbon emissions, RFA will continue to pursue and protect trade opportunities in a free or fair manner.”

As detailed in the ethanol trade summary report, the 1.91 billion gallons exported in 2024 represented an increase of over 36 percent over 2023. The value of U.S. ethanol exports surged to $4.3 billion, a record high. Shipments to Canada set an annual record for a single destination, tallying over 674 million gallons. The United Kingdom, European Union, India and Colombia were also sizable markets.

The distillers grains trade report showed exports totaled 12.2 million metric tons in 2024, representing 37 percent of domestic production. Export volumes were valued at $3.2 billion.

Cooper commented on the record exports in a recent Ethanol Report podcast where he also talked about the need to work with the new administration on trade barriers in Brazil and China in particular.

RFA CEO on record ethanol exports 3:50

Audio, Distillers Grains, Exports, Renewable Fuels Association, RFA

Senators Question USTR Nominee on Biofuels Trade

Cindy Zimmerman

Biofuels and ethanol, particularly in relation to Brazilian tariffs, were a topic of discussion during Thursday’s Senate Finance Committee hearing for the nomination of Jamieson Greer as the United States Trade Representative (USTR).

Senators Chuck Grassley (R-IA) and Roger Marshall (R-KS) both questioned Greer about the issue of Brazil’s tariffs on U.S. ethanol imports. “There are a lot of items at the top of my list if confirmed, and this is one of them,” said Greer. “That’s the specific kind of unfairness that drives me crazy and not just me but the president himself, when he sees this kind of unfairness and the un-level playing field.”

Currently, there is an 18% tariff on imports of U.S. ethanol into Brazil. In contrast, Brazilian ethanol exports to the United States face no import tariffs.

Listen to Sens. Grassley and Marshall with Greer.
Sen. Grassley questions Jamieson Greer (3:41)

Sen. Marshall questions Jamieson Greer (7:04)

Audio, Ethanol, Exports