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Illinois economists, Dinneen weigh in on RIN price increase

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By Susanne Retka Schill

March 11, 2013

Business Markets 

The speed and magnitude of the recent runup in the price of D6 RINs is "indeed startling," Illinois ag economists Scott Irwin and Darrel Good write in a FarmDoc Daily post, noting the price increase is fundamentally supported by the blend wall.

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Corn imports are up and exports down, supporting higher expected feed and residual disappearance, according to the March 8 World Agriculture Supply and Demand Estimate report.

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Third E15 station opens in Iowa

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By Iowa Renewable Fuels Association

March 08, 2013

The Iowa Renewable Fuels Association today announced that Kountry Korner in Baxter, Iowa, is now offering E15 as a registered fuel, joining Linn Coop Oil in Marion and Fredericksburg Coop in Fredericksburg, in offering the fuel.

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Bloomberg New Energy Finance has published a white paper outlining eight issues it has identified as being central to the biofuels industry in 2013, including fuel mandates, cellulosic biofuel production, blending economics and politics.

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The government of Brazil has published an official notice to increase the mandatory blend level of anhydrous ethanol from to 25 percent, effective May 1. The current blend level is set at 20 percent.

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Legislation is working its way through the Minnesota state House of Representatives and Senate that would open the door for E15, biobutanol and other biofuels. The underlining objective is to displace 30 percent petroleum by 2025.

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The continual attacks on E15 get frustrating and tiring for those of us that recognize the positives of the fuel.

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Rob Vierhout, secretary general of ePURE, the European Renewable Ethanol Association, spoke to Ethanol Producer Magazine about the recent European Union decision to impose an $83.03 per metric ton tariff on imported U.S. ethanol.

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For the next five years, U.S. ethanol, and only U.S. ethanol, exported to European Union countries will be subject to an $83.03 per metric ton tariff or duty. It's a disappointing blow for U.S. ethanol producers.

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A bill introduced in the U.S. House of Representatives seeks to repeal the E15 waiver and require additional testing of the fuel, despite extensive testing by the U.S. DOE. Rep. Jim Sensenbrenner, R-Wis., introduced H.R. 875.

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Netherlands-based Rabobank has published an analysis predicting sugarcane production in Brazil's center/south region will rebound strongly during the 2013-'14 harvest, resulting in a significant increase in both sugar and ethanol production.

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IRFA highlights impact of biofuels on Iowa's progress, prosperity

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By Iowa Renewable Fuels Association

February 28, 2013

The Iowa Renewable Fuels Association has released an online version of an industry scrapbook that illustrates how far the renewable fuels industry has come and how profound its impact on Iowa has been over the past decade.

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The U.S. Energy Information Administration has released the February issue of its Monthly Energy Review, which includes ethanol date through Nov. 2012. During the first 11 months of 2012, the U.S. produced 12.209 billion gallons of ethanol.

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A Feb. 26 hearing featured testimony of three E15 critics, including a representative of the Coordinating Research Council, which has authored research reports concluding E15 could damage engine valves and fuel system components.

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The EU Council published today a regulation imposing an anti-dumping duty on US bioethanol exports to the EU. As of tomorrow, a 62.9 euro per metric ton duty will be applied to all imports of ethanol from the US for the next five years.

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Renewable identification numbers (RINs) for renewable fuels, such as corn ethanol, are up significantly. The RINs, which have traditionally gone for about 2 cents a gallon starting reached 46 cents for 2013 RINs on Feb. 21.

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The U.K. Department for Environment, Food and Rural Affairs recently published experimental statistics on biofuel crops. U.K. farmers planted an estimated 1.939 million hectares of wheat in 2010, with 75 hectares used for ethanol production.

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Comparing last year's corn yields to the trend yielded an interesting map of the drought of 2012. "The U.S. dodged a bullet with the 2012 drought," wrote University of Illinois ag economist Gary Schnitkey in the FarmDocDaily.

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Ethanol industry pledges to challenge the EU tariff

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By Renewable Fuels Association, Growth Energy

February 19, 2013

The European Commission is officially imposing an $83.03 per metric ton tariff on U.S. ethanol entering the European Union. The Renewable Fuels Association and Growth Energy intend to challenge the policy in every manner possible.

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MIT scientists boost isobutanol production in yeast

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By Massachusetts Institute of Technology

February 18, 2013

MIT chemical engineers and biologists have devised a way to dramatically boost isobutanol production in yeast, which naturally make it in small amounts. They engineered yeast so that isobutanol synthesis takes place entirely within mitochondria.

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Pending legislation in the U.S. House of Representatives aims to limit the ability of the U.S. EPA to increase the cellulosic biofuel requirements its sets each year under the renewable fuel standard (RFS).

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The American Petroleum Institute is once again misleading Congress and the general public about the renewable fuel standard (RFS); this time, as it pertains to a January 2012 ruling by the U.S. Court of Appeals for the D.C. Circuit.

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On Feb. 14, U.S. Sens. Roger Wicker, R-Miss., and David Vitter, R-La., introduced legislation that would overturn U.S. EPA approval of E15 for model year 2001 and newer light duty vehicles.

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The U.S. Energy Information Administration has released the February 2013 issue of its Short-Term Energy Outlook. Despite the forecast increase in ethanol production, it is expecting a drawdown of banked renewable identification numbers (RINs).

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In their continuing analysis of implementing the renewable fuels standard (RFS) and the blend wall, University of Illinois economists Scott Irwin and Darrel Good say something has to give.

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