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Pemex awards 10-year contracts for domestic ethanol in Mexico

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By Susanne Retka Schill

April 08, 2015

Policy Business Operations Markets 

Fuel ethanol got a boost in Mexico recently when state-owned oil company, Pemex, awarded four 10-year purchase contracts for anhydrous ethanol. Pemex announced contracts for 123 million liters (32 million gallons) of domestically produced ethanol.

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Nebraska ethanol producers continue to work with retailers across the state to provide fuel choice for consumers. The most recent of these ethanol producers is Husker Ag LLC, which has provided infrastructure grants to eight retail locations.

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On April 6, the National Transportation Safety Board issued four recommendations to the Pipeline and Hazardous Materials Safety Administration calling for more stringent safety requirements for rail cars transporting flammable liquids.

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Market conditions in mid-March showed ethanol producers could pay about 10 percent more than the current cash corn price before reaching the plant "shut-down level," according to an analysis by retired Iowa State University economist Robert Wisner.

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The job of a journalist includes constant learning. If I ever get to the point where I feel like I have learned all I need to know about the ethanol industry, it will be time to hang up my hat and do something else.

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Third Way has released a report highlighting the connection between first- and second-generation ethanol and the need for continued implementation of the renewable fuels standard (RFS).

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The U.S. Energy Information Administration recently released the March 2015 edition of its Monthly Energy Review, which provides comprehensive ethanol production, consumption and trade statistics for 2014.

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Ceres Inc. recently announced that its biotech sugarcane traits have been advanced to the next stage of testing ahead of schedule due to positive data from initial field evaluations under tropical conditions in Latin America.

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According to EIA monthly supply data through December 2014, which EIA released in late February, U.S. exports of fuel ethanol in 2014 reached their second-highest level at a total of 826 million gallons.

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Rex American Resources Corp. has released financial results for fiscal year 2014, which ended Jan. 31, reporting net sales of $572.2 million, down from $666 million in fiscal 2013. Gross profits, however, more than doubled, reaching $141.9 million.

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Gevo Inc. has released 2014 financial results, reporting increased revenues when compared to 2013. During the fourth quarter, the company continued to progress with commercial production of isobutanol at its Luverne, Minnesota, plant.

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Croda Inc. is planning to break ground on a $170 million upgrade to its Atlas Point manufacturing site in Delaware. When completed, the company will begin converting between 10 million and 14 million gallons of ethanol into ethylene oxide.

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Currently, the corn market has been responding to an ever-volatile global currency environment. The U.S. dollar has been a culprit affecting commodity values within the U.S.

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Ethanol prices have gained momentum at the end of March, following renewed spring support in corn futures prices. The reduction of supplies over the last four weeks has created additional support through the ethanol complex.

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Commodities: Analysts to watch summer inventory supply closely

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By Ben Straus, U.S. Energy Services

March 24, 2015

Winter is almost over. And for the natural gas market, the end of winter is significant event mainly in terms of declining demand.

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DDGS prices are still being dramatically affected by Chinese demand, in both bulk and container shipments. More than 2.5 million metric tons have been booked via the Gulf in bulk vessels destined for China so far for the summer.

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Gevo, Inc. announced March 24 that Praj Industries Ltd. has signed a memorandum of understanding to become a Gevo licensee for producing renewable isobutanol at sugar-based ethanol plants.

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The RFA needs your help to promote and update two newly acquired E85 websites.

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The American Fuel & Petrochemical Manufacturers and American Petroleum Institute have filed a lawsuit in the U.S. District Court of the District of Columbia against the U.S. EPA regarding delays in finalizing 2014 and 2015 renewable fuel standards.

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The April issue of EPM contains articles about lignin, algae-to-ethanol production, the process to develop new yeasts for cellulosic ethanol production and biogas entering the D3 RIN market, writes Tom Bryan of BBI International.

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San Francisco welcomes E85

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By Renewable Fuels Association

March 19, 2015

March 19 marks the first offering of E85 to flex-fuel vehicle owners in San Francisco. Pearson Fuels and All Stars Fuel celebrated the high-octane E85 at a ribbon cutting by offering E85 at 85 cents per gallon.

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Bobby Likis featured Judd Hulting, commodities manager at Patriot Renewable Fuels LLC, in Annawan, Illinois, during his two-hour Saturday morning radio show, Bobby Likis Car Clinic, on March 14.

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Iowa sets new E85 sales record in 2014

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By Iowa Renewable Fuels Association

March 17, 2015

The Iowa Renewable Fuels Association has announced Iowa motorists purchased more than 2.93 million gallons of E85 in the fourth quarter of 2014, and a record-setting 11.96 million gallons in all of 2014.

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Ceres Inc. and Raizen S.A., have signed a multiyear collaboration agreement to develop and produce sweet sorghum on an industrial scale. Sweet sorghum can extend the operating season of Brazilian sugarcane ethanol mills.

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Retailers selling E15 say business is up, consumers are satisfied and everyone is excited to help local economies, improve the environment and reduce our nation's addiction to foreign oil, writes Tom Buis of Growth Energy.

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Introducing renewable natural gas, the new player in the cellulosic RINs market.

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Although most U.S. trade with Cuba has been severely restricted since the 1960s, Cuba does buy limited amounts of agricultural products from the United States, including corn and distillers dried grains with solubles (DDGS).

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Oregon Gov. Kate Brown has signed S.B. 324 into law. The bill removes the Dec. 31, 2015 sunset date from the state's Clean Fuels Program. By signing S.B. 324, Brown has allowed the program to be implemented past the end of this year.

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UNICA's Leticia Phillips outlines proposed major revisions to California's Low Carbon Fuel Standard and the Brazilian Sugarcane Industry Association's take on them.

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The U.S. Energy Information Administration has published the March issue of its Short-Term Energy Outlook, increasing its forecasts for both 2015 and 2016 ethanol production. The U.S. is now expected to produce 947,000 barrels per day this year.

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