USGC Promotes Ethanol and DDGS Exports

Cindy Zimmerman

The U.S. Grains Council (USGC) organized a mission to Brazil last week to learn about the market potential Brazilian corn ethanol has domestically and globally and about logistics faced by U.S. ethanol exporters to Brazil at the main ports situated in the northeastern part of the country.

The team included Duane Kristensen, Chief Ethanol Fuels, Inc.; Mackenzie Boubin, USGC director of global ethanol market development; Juan Sebastian Diaz, USGC regional ethanol consultant for Latin America; Danielle Ramos, government affairs coordinator with Suape Port; and Kelly Nieuwenhuis, Iowa Corn Promotion Board. They are pictured here with Danielle Ramos, government affairs coordinator with Suape Port; and Fernanda Burle with MJAB.

The Council has been active in Brazil advocating to reduce the duties applied to U.S. ethanol and to help certify ethanol plants under the RenovaBio program. In March 2022, Brazil decided to drop the common Mercosur duty of 20 percent on all ethanol imports until Dec. 31 as an effort against inflation. Council efforts this year have been aimed at turning this into a permanent decision.

This week, the council organized a group of representatives from the Missouri Corn Merchandising Council, Ohio Corn Marketing Program and the Kentucky Corn Promotion Council to Sonora, Mexico, to check out some investments made by their organizations to increase utilization of DDGS.

The organizations have been working with the Sonora Pork Producers Association, an MOU partner, in Ferropuerto on increasing the volume of distiller’s dried grains with solubles (DDGS) among swine, poultry and cattle producers and will begin working closely with the Hermosillo Cattle Producers Association on conducting proper analysis of feed rations to fully utilize the value of U.S. corn.

Through this mission, the Council looks to maintain its long-term relationships with major grain importers and end users across Sonora, while solidifying strategic relationships in Mexico by working directly with organizations in U.S. corn-producing states.

USGC President and CEO Ryan LeGrand talked about the council’s efforts to increase exports of U.S. ethanol and co-products in this interview at the recent American Coalition for Ethanol conference.
ACE22 interview with USGC CEO Ryan LeGrand (7:34)

ACE, ACE Ethanol Conference, Ethanol, Ethanol News, Exports, USGC

ACE Ready to Help Retailers With HBIIP

Cindy Zimmerman

The American Coalition for Ethanol (ACE) welcomed this week’s news that the application period is now open for latest round of USDA’s Higher Blends Infrastructure Incentive Program (HBIIP), which will provide $100 million in grants to pay up to 50 percent of the cost of equipment for station owners to add or upgrade to sell higher ethanol blends like E15 and E85.

Marketing higher blends was a big focus at the recent ACE Conference in Omaha, where they held a pre-conference retailers workshop, as well as retailer panel featuring Randy Gard, Bosselman Enterprises, and Jeff Wilkerson, Pearson Fuels.

Bosselman owns Pump & Pantry™ hometown convenience stores with locations throughout the state of Nebraska featuring quality Boss Fuel™ ethanol blends. “Simply put, we love ethanol at the retail level,” said Gard, who explained how Bosselman started with higher blends in 2016.

Pearson Fuels became a pioneer in the alternative fuel industry in 2002 and is the largest and fastest growing distributor of E85 in the state of California. “In a state like California, gasoline is on borrowed time, but California knows they still need liquid fuel,” said Wilkerson. With state regulations calling for lower and lower carbon intensity scores, he sees great potential for ethanol in the future.

ACE Chief Marketing Officer Ron Lamberty says they are gearing up to help other retailers sell higher blends with this new round of funding. “We’ll again promote USDA’s biofuel infrastructure program with paid advertising, a new round of video tutorials we plan to film with the USDA HBIIP manager, and by helping retailers across the country submit applications.”

Listen to Gard and Wilkerson during the retailer panel at the recent ACE Conference.
ACE22 remarks Randy Gard and Jeff Wilkerson (25:58)

Listen to Ron Lamberty’s industry update from ACE
ACE22 Ron Lemberty remarks (14:17)

2022 ACE Annual Conference Photo Album

ACE, ACE Ethanol Conference, Audio, E15, E85, Ethanol, Ethanol News

USDA Opens Applications for Higher Blends Funding

Cindy Zimmerman

L-R: Sec. Vilsack; Nathanial Doddridge, Casey’s; Sen. Duckworth

The U.S. Department of Agriculture announced this week that applications are now being accepted for the latest round of funding under the Higher Blends Infrastructure Incentive Program (HBIIP). The program seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks.

Secretary of Agriculture Tom Vilsack made the announcement Tuesday at a central Illinois Casey’s General Store with Sen. Tammy Duckworth and Nathanial Doddridge, Vice President of Fuel for Casey’s General Stores. “Biofuels are homegrown fuels. Expanding the availability of higher-blend fuels is a win for American farmers, the rural economy and hardworking Americans who pay the price here at home when we depend on volatile fuel sources overseas,” said Vilsack.

Listen to the announcement here:
Sen. Duckworth and USDA Sec Vilsack (3:28)

“This investment by USDA in lower-cost, lower-carbon biofuels will benefit consumers across the country, while also creating new market opportunities for America’s farmers and ethanol producers,” said Renewable Fuels Association President and CEO Geoff Cooper, who joined USDA Secretary Tom Vilsack for the announcement. “USDA’s previous investments in biofuels infrastructure yielded huge dividends for drivers this summer, as higher blends like E15 and E85 were the most affordable options at the pump.”

American Coalition for Ethanol (ACE) Chief Marketing Officer Ron Lamberty said the program helps make lower carbon ethanol blends available in more locations to help meet greenhouse gas reduction goals. “There are more than 20 million flex fuel vehicles on the road already and if we’re serious about decreasing transportation carbon emissions, more E15 and E85 fueling locations can help move the needle in weeks and months, not years,” said Lamberty.

ACE held a retailer workshop earlier this month in Omaha to help prepare them for the new round of funding and they are working on new video tutorials with the USDA HBIIP manager to assist retailers across the country in submitting applications.

ACE, Audio, Biodiesel, biofuels, E15, E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA, USDA

Ethanol Report on Upcoming Export Exchange

Cindy Zimmerman

The U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), and Growth Energy are once again joining together to host the 2022 Export Exchange. U.S. suppliers of coarse grains and co-products, industry representatives and members of the grain trade are encouraged to register now for the event scheduled for October 12-14, 2022, in Minneapolis.

In this edition of the Ethanol Report, we hear from RFA VP Technical & Regulatory Affairs Kelly Davis and US Grains Council President and CEO Ryan LeGrand about the current state of ethanol and co-products exports and why producers should attend the Export Exchange.

Ethanol Report 8-23-22 (15:11)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Export Exchange, Exports, Renewable Fuels Association, RFA, USGC

ACE Explores Ethanol’s Expanding Role in Carbon Market

Cindy Zimmerman

As Congress was passing sweeping legislation last week with provisions targeted on reducing greenhouse gas emissions, the American Coalition for Ethanol was holding its annual conference focused on ethanol’s role in turning down carbon intensity.

ACE CEO Brian Jennings says the Inflation Reduction Act “recognizes the role farmers and biofuel producers can play in reducing greenhouse gas emissions and validates the work ACE has put forth to position corn ethanol as a meaningful part of the climate solution.”

Among several sessions focused on carbon reduction, the final panel at the ACE conference offered more insight into the world of carbon sequestration strategies to achieve GHG reductions and provide significant return on investment for low carbon producers.

ACE Board Member and farmer Ron Alverson moderated the panel with Jim Pirolli, Chief Commercial Officer, Summit Carbon Solutions and Scott Rennie, CEO, Vault 44.01.

ACE22 remarks Jim Pirolli, Summit Carbon Solutions (23:57)

ACE22 remarks Scott Rennie, Vault 44.01 (23:05)

ACE, ACE Ethanol Conference, Audio, Carbon, corn, Ethanol, Ethanol News, Farming

Bill Includes Farms and Biofuels for Climate Action

Cindy Zimmerman

Farm and biofuel organizations are pleased with provisions included in the Inflation Reduction Act signed into law by President Biden Tuesday, including new funding to encourage agricultural conservation programs and advance biofuels.

“Through this legislation, Congress and the administration recognize that farmers’ voluntary climate-smart agricultural practices are an important part of addressing climate change,” said Brooke Appleton, the National Corn Growers Association (NCGA) vice president of public policy. “We are also particularly pleased to see Congress and the administration acknowledge that low-carbon biofuels like ethanol are needed to help decarbonize transportation and improve energy security.”

The law allocates $19.9 billion for U.S. Department of Agriculture conservation programs and $1 billion for additional conservation technical assistance. For biofuels, the legislation includes $500 million for infrastructure for greater market deployment of higher blends of biofuels as well as new tax credits based on carbon reduction to incentivize clean fuels and new sustainable aviation fuel.

Renewable Fuels Association President and CEO Geoff Cooper says the bill puts ethanol on a sustainable path for growth and investment. “Several provisions within this bill are very important to the U.S. biofuels industry and will result in American families having greater access to low-carbon, more affordable, domestically made renewable fuels. We look forward to helping the administration implement the key provisions within this legislation.”

RFA Senior VP, Government & Public Affairs, Troy Bredenkamp summarizes the provisions in the bill that help farmers and biofuel producers contribute more to a low carbon future.
RFA's Troy Bredenkamp on Inflation Reduction Act (3:51)

Audio, biofuels, corn

USDA Forecasts Lower for Corn

Cindy Zimmerman

USDA has lower forecasts this month for corn production, supplies, exports, and ending stocks.

The August Crop Production report from USDA’s National Agricultural Statistics Service (NASS) estimates corn production down 5% from last year, forecast at 14.4 billion bushels while soybean growers are expected to increase their production by two percent from 2021 to 4.53 billion bushels.

In this month’s World Agricultural Supply and Demand Estimates, the 2022/23 U.S. corn outlook is for lower supplies, reduced feed and residual use, slightly higher food, seed, and industrial use, smaller exports, and lower ending stocks. Projected beginning stocks for 2022/23 are 20 million bushels higher based on a lower use forecast for 2021/22, where a reduction in corn used for ethanol is partially offset by greater use for glucose and dextrose.

The season’s first survey-based corn yield forecast, at 175.4 bushels per acre, is 1.6 bushels below last month’s projection. Total U.S. corn use for 2022/23 is reduced 45 million bushels to 14.5 billion. Feed and residual use is lowered 25 million bushels based on a smaller crop. Corn used for glucose and dextrose is projected higher based on observed use during 2021/22. Exports for 2022/23 are cut 25 million bushels to 2.4 billion. With supply falling more than use, ending stocks are lowered 82 million bushels to 1.4 billion. The season-average corn price received by producers is unchanged at $6.65 per bushel.

corn, Ethanol, Ethanol News, Feed, USDA

FEW Heading to Omaha for 2023

Cindy Zimmerman

BBI International has announced that the 39th Fuel Ethanol Workshop & Expo (FEW) will take place June 10-12, 2023 at the CHI Health Center in Omaha, Nebraska.

“We are thrilled to be bringing the FEW back to Omaha for the first time since 2018,” says John Nelson, vice president, sales & marketing for Ethanol Producer Magazine. “Our 2018 FEW was one of the largest FEW conferences we’ve had in a decade, making it the perfect location for the 2023 FEW.”

The website for the 2023 International Fuel Ethanol Workshop & Expo is now LIVE online.

Ethanol, Ethanol News, FEW

Clean Fuels Celebrates Rebrand with Missouri Governor

Cindy Zimmerman

MO Gov Mike Parson and other officials with Clean Fuels CEO Donnell Rehagen (right)

Clean Fuels Alliance America welcomed state and local officials to its headquarters in Jefferson City, Missouri Tuesday to celebrate rebranding and expanding.

Clean Fuels, formerly known as the National Biodiesel Board, expanded its brand this year in recognition of the multiple, rapidly growing clean fuels it represents, including biodiesel, renewable diesel and sustainable aviation fuel.

Missouri Gov. Mike Parson, Rep. Blaine Luetkemeyer (R-MO), Jefferson City Mayor Carrie Tergin and other elected officials and civic leaders joined Clean Fuels CEO Donnell Rehagen to recognize the expanded focus. Clean Fuels has been based in Jefferson City since its founding in 1992 and includes over 120 member companies from across the country, including agriculture commodity groups, fuel producers and distributors, and equipment manufacturers.

“Today’s ribbon cutting represents a major milestone for our industry, which began from humble roots 30 years ago and is increasingly playing an essential role in efforts to decarbonize our nation and our world’s fuel supply,” Rehagen said. “Our industry has seen and will continue to see significant growth as the world focuses on clean energy. Our members produce some of the cleanest fuels on the plant and are an integral part of the solution for sustainable energy that’s not only affordable but also scalable and available now. Further, our new name and brand represents the connected energies of our members and positions our industry for a clean fuels future.”

Biodiesel, biofuels, Clean Fuels Alliance

ACE Conference Brings the Intensity

Cindy Zimmerman

The 35th ACE annual conference was a success on many levels, rolling with the unexpected just like the industry.

As the conference got underway on Thursday and Nebraska Governor Pete Ricketts was five minutes into his remarks, the fire alarm went off in the hotel requiring everyone to evacuate out the side door and down the steps. It turned into an exceptional group photo op for everyone with the governor and everything just proceeded as scheduled after that.

ACE CEO Brian Jennings says they were pleased to see attendance back up to pre-COVID levels and he was encouraged by the remarks he heard from EPA agricultural advisor Rod Snyder about year-round E15. “I believe EPA will move forward at some point this fall…with a rulemaking to allow these 8 or 9 Midwestern states to permanently sell E15,” said Jennings.

Listen to Jennings’ conference wrap up interview here:
ACE22 interview with ACE CEO Brian Jennings (4:57)

Find photos and audio from the ACE conference here:
35th American Coalition for Ethanol Virtual Newsroom

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News