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USDA amends program offering $700M in COVID-19 aid for biofuels

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By Erin Krueger

January 27, 2022

Feedstocks Policy Business Operations Markets 

The USDA is amending its program offering $700 million in COVID aid to biofuel producers by allowing production to meet marketing obligations or fulfill or maintain essential markets to be included in the calculations of a producer's market losses.

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Iowa Gov. Reynolds introduced legislation on Jan. 24 that aims to increase consumer access for E15 and B20 fuel blends. The following day she issued a proclamation declaring Feb. 27 as Iowa Renewable Fuels Association Day.

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The USDA has announced that Growth Energy CEO Emily Skor will speak at the 98th Agricultural Outlook Forum, “New Paths to Sustainability and Productivity Growth.� Skor will be a featured panelist during this year's plenary session.

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The 2022 Iowa Renewable Fuels Summit, held Jan. 25, highlighted significant opportunities for growth driven by demand for advanced biofuels, such as SAF, but also addressed policy and economic concerns impacting biofuel producers.

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Archer Daniels Midland Co. released fourth quarter financial results on Jan. 25, reporting strong ethanol margins for the three-month period. The company is optimistic about ethanol going into 2022 and expects production to grow.

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We're not giving up on year-round E15. Far from it. We're pushing harder than ever to restore fair market access for this cleaner-burning fuel. And we won't stop until we've succeeded.

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China's antidumping and countervailing duty measures on U.S. DDGS were set to expire in January. Those measures will remain in place, however, as MOFCOM conducts an expiry review to consider a five-year extension of the measures.

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Agriculture Secretary Tom Vilsack discussed the important role biofuels and biobased manufacturing play in the rural economy and highlighted the agency's efforts to support those industries during a Jan. 20 hearing held by the House Ag Committee.

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UNICA, the Brazilian sugarcane industry association, has announced that no sugarcane ethanol was produced in the south-central region of Brazil during the second half of December. Corn ethanol production, however, continued.

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A report recently filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network illustrates the impact of the COVID-19 pandemic on Canada's ethanol industry and provides an overview of the country's draft CFS.

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The Minnesota Bio-Fuels Association released its 2021 Annual Report on Jan. 14. The report deatils work carried out by the organization and highlights signficiant growth in the state's E15 sales last year.

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The ethanol industry entered 2022 with considerable momentum after profit margins rose to all-time records during Q4, according to CoBank's latest Quarterly Research Report, released in January. Several risks, however, are expected to emerge in 2022.

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The Renewable Energy and Energy Efficiency Advisory Committee has released its updated recommendation fact sheet, aiming to encourage the Department of Commerce to provide support to the interagency process for global ethanol market development.

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In a cosigned letter, ACE, NBB, Great Plains Institute, Low Carbon Fuels Coalition, and Canadian Oilseed Processors Association recommend CARB recognize the climate benefits of farming practices in California's LCFS.

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BBI International is launching a new magazine, titled Carbon Capture Magazine. There will be one print issue of the magazine published in 2022, along with a carbon capture industry directory and a map of storage and capture facilities.

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Legislation introduced in the Michigan Senate on Jan. 11 aims to create a tax credit for retailers that choose to sell higher ethanol fuel blends, such as E15 and E85. The tax credit would be in place for five years.

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The Supreme Court on Jan. 10 denied a petition filed by Growth Energy in October 2021 seeking a review of the U.S. Court of Appeals for the D.C. Circuit's July 2, 2021, ruling that vacated a portion of a 2019 EPA rule allowing year-round E15 sales.

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Sen. Joni Ernst, R-Iowa released a statement on Jan. 7 urging the U.S. Supreme Court to review a July 2, 2021, decision handed down by the U.S. Court of Appeals for the D.C. Circuit that vacated a U.S. EPA rule allowing year-round sales of E15.

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The U.S. exported 149.44 million gallons of ethanol and 1.02 million metric tons of distillers grains in November, according to data released by the USDA FAS on Jan. 6. Exports of both products were up when compared to the same period of 2020.

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Fuel ethanol consumption in Japan is expected to reach 823 million liters (217.41 million gallons) in 2021, down from 850 million liters in 2020, according to a report filed with the USDA FAS's Global Agricultural Information Network in December.

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UCF researchers develop ethanol fuel cells

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By Robert Wells, University of Central Florida

January 04, 2022

A new material developed by the University of Central Florida may one day mean people could be pouring a drink for their car. That's because UCF researchers are developing an alcohol-based power source for cars and other technology.

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USGC participates In OLADE's Energy Week

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By U.S. Grains Council

January 04, 2022

Carlos Suárez, USGC regional ethanol consultant for Latin America, spoke about the economic and environmental benefits of ethanol blending during a panel at the Latin American Energy Organization's (OLADE's) Energy Week.

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USDA FAS in December awarded fiscal year 2022 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for U.S. goods. The U.S. Grains Council was awarded more than $9.69 million to support its work.

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RFA ends landmark 40th year growing even stronger

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By Renewable Fuels Association

December 28, 2021

The RFA closesd out its yearlong 40th anniversary celebration the final week of 2021. The organization welcomed more than 20 new members during the year. The RFA's anniversary activities also included a series of profiles and a video released at NEC.

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The DOE is seeking input from biofuels producers and technology developers about their readiness to scale certain process technologies. The agency is also interested in learning how existing first-generation biofuel indsutries can be leveraged.

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USGC: US-Japan partnership on trade launched

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By U.S. Grains Council

December 21, 2021

The United States and Japan recently announced the launching of a “partnership on trade� to continue to strengthen the alliance of the two nations through regular engagement on trade-related matters.

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USGC promotes US ethanol at Seoul Mobility Show

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By U.S. Grains Council

December 21, 2021

To convey the benefits of ethanol to government and industry stakeholders, the media and consumers, the U.S. Grains Council's South Korea office participated in the Seoul Mobility Show from Nov. 25 – Dec. 5.

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Growth Energy is urging the U.S. Supreme Court to review a lower court's decision that vacated a U.S. EPA rule allowing year-round sales of E15 despite the U.S. Department of Justice's recommendation that the court let the ruling stand.

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While most ethanol producers aren't actively pursuing DCO yields over 1.2 pounds per bushel, the pursuit of ultra-high, or even theoretical maximum yield, is as compelling as it is consequential. Both the process and the market must be considered.

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A new USDA program could soon establish the quantification and verification protocols necessary for long-awaited climate-smart farming incentives, which could begin to scale ethanol's role in an increasingly decarbonized transportation sector.

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