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A Defining Moment for Ethanol

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By Geoff Cooper

June 10, 2020

Policy Business Operations Markets Coproducts 

This spring, as the U.S. ethanol industry ratcheted back production by more than 45 percent, taking 8 billion gallons of capacity off line, it did anything but retreat from the COVID-19 crisis. It rose to the challenge, and stepped up to help.

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The Brazilian Development Bank (BNDES) on June 4 announced the launch of a credit program designed to help support the country's ethanol industry, which is being negatively impacted by falling fuel demand resulting from the COVID-19 pandemic.

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The U.S. Energy Information Administration slightly reduced its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released on June 9. Forecasts for ethanol consumption were also revised down.

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Missouri biofuel entities now eligible for $200,000 grant

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By Missouri Department of Agriculture

June 08, 2020

On June 4, the Missouri Agricultural and Small Business Development Authority announced the creation of the Biofuel Infrastructure Program to increase the availability of higher blends of ethanol and biodiesel in the Show-Me State.

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Iowa legislature reauthorizes biofuel tax differentials

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By Iowa Renewable Fuels Association

June 05, 2020

The Iowa legislature has reauthorized the Iowa biofuel tax differentials, helping boost biofuel demand and lower prices. the bill extends and modernizes fuel tax differentials for E15 and higher ethanol blends and B11 and higher biodiesel blends.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol sales fell by more than 20 percent during the first half of May. Corn ethanol production, however, is up significantly when compared to 2019.

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The U.S. exported 99.38 million gallons of ethanol and 765,635 tons of distillers grains in April, according to data released by the USDA Foreign Agricultural Service on June 4. Exports of both products were down.

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USGC: Indonesia removes ethanol ban

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By U.S. Grains Council

June 01, 2020

U.S. ethanol can now enter the Indonesian market by way of pre-blended fuel, following the recent removal of a ban on pre-blended product entering the country. This change creates a potential market of more than 200 million gallons.

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The U.S. Department of Commerce's International Trade Administration has announced the Renewable Energy and Energy Efficiency Advisory Committee will hold a virtual meeting via WebEX on June 4. The meeting will be the final of REEEAC's current term.

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The Oregon Department of Environmental Quality on May 18 announced it has submitted detailed information to Gov. Kate Brown on how it plans to carry out her March 10 executive order that set a new goal for greenhouse gas (GHG) reduction.

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Sens. Joni Ernst, R-Iowa, and Chuck Grassley, R-Iowa, sent a letter to the FDC on May 26 urging the agency to clarify its temporary policy for the manufacture of alcohol-based hand sanitizer products during the COVID-19 pandemic.

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Experts agree that achieving the EU Green Deal will require a massive increase in bioenergy, so it is important that we rely on renewable energy sources that are sustainable, preserving Europe's biodiversity and protecting its food security.

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UNICA, the Brazilian sugarcane industry association, recently released data showing ethanol sales by mills in the country's south-central region were down 29 percent in April. Sales in both domestic and export markets were down.

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U.S. ethanol production for the week ending May 15 was up nearly 8 percent while weekly ethanol ending stocks fell by more than 2 percent, according to data released on May 20 by the U.S. Energy Information Administration.

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The American Coalition for Ethanol is pleased to announce its 33rd annual conference will be held in conjunction with the rescheduled International Fuel Ethanol Workshop & Expo hosted by BBI International on Aug. 25, in Omaha, Nebraska.

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In Mexico, the U.S. Grains Council is working with poultry producers to examine how U.S. corn distillers oil (CDO) can help achieve the darker yellow egg yolk desired by consumers and boost the immune systems of the chickens that lay those eggs.

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The RFA on May 15 held a media call to discuss market impacts of COVID-19, recent polling results that show strong support for biofuels, the need for federal relief for biofuel producers, and barriers to hand sanitizer production.

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Attorneys for a broad alliance of ethanol, agriculture and clean fuel organizations filed their opening brief arguing that EPA regulatory barriers that prevent ethanol from competing for greater market share are illegal, according to the UAI.

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BBI International and Biodiesel Magazine are pleased to announce that the agenda for the Biodiesel Production Technology Summit, set to take place Aug. 24-26, 2020, in Omaha, Nebraska, has been released and is now available online.

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LucasE3 has announced an agreement with Brazil-based Maracajá Bioenergia to build a new corn ethanol plant in the northern region of the state of Mato Grosso near the municipality of Matupá. Construction is expected to start later this year.

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UNICA, the Brazilian sugarcane industry association, recently announced that ethanol revenue for mills in the south-central region of the country was down almost 50 percent during the first half of April due to impacts from the COVID-19 pandemic.

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The U.S. Energy Information Administration increased its forecast for 2020 ethanol production, but lowered its prediction for 2021 ethanol production in its latest Short-Term Energy Outlook, released on May 12.

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A fourth COVID-19 stimulus package known as the HEROES Act was introduced in the U.S. House of Representatives on May 12. The bill includes dedicated relief for biofuels producers by establishing the Renewable Fuel Reimbursement Program.

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US ethanol industry disappointed in new Colombian duties

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By U.S. Grains Council, Growth Energy and the Renewable Fuels Association

May 11, 2020

The Colombian Ministry of Commerce, Industry, and Tourism (MINCIT) has announced it will impose duties of $0.1997/gallon on U.S. ethanol exports to Colombia. The USGC, Growth Energy and RFA said the duties are unjustified.

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OPINION: Funds for higher ethanol blends in USDA's HBIIP pocket

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By Ron Lamberty, senior vice president, American Coalition for Ethanol

May 07, 2020

ACE took part in stakeholders' meetings with USDA throughout the process of developing the HBIIP and emphasized single-store and small chain retailers as being critical to widespread availability and use of E15 and flex fuels.

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The USTR recently issued its 2020 National Trade Estimate, an annual report detailing foreign trade barriers faced by U.S. exporters of goods and services and USTR's efforts to reduce those barriers. Ethanol and DDGS are among the products addressed.

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We are in the midst of a pandemic and the latest figures show 41 ethanol plants idled and 66 more reducing production, for a total reduction of about 4 billion gallons. Still, our industry churns on with innovation and forward thinking.

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OPINION: Casey's making big strides on E15

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By Cassie Mullen, director of market development at the Renewable Fuels Association

May 06, 2020

While some fuel retailers have over-promised and under-delivered when it comes to offering higher ethanol blends, industry leader Casey's is putting its money where its mouth is and making good on its commitment to add E15 at stores across the U.S.

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In Europe, biofuels continue to be the predominant source of clean transportation fuels, and we will still need low-carbon fuels like ethanol beyond 2030. Policymakers need to make sure the Green Deal does not backtrack on this vision and progress.

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In Japan, dairy producers now have more options to include in their feed rations – U.S. low-fat distillers dried grains with solubles (DDGS) – thanks to the work of the U.S. Grains Council with Japanese industry and government.

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