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By Ethanol Producer Magazine

March 24, 2020

Business Markets 

FROM THE APRIL ISSUE: Growth Energy names American Biofuels Visionary, RFA announces 2020 Industry Award, Grains Council plans trade strategy, E15 added to two Nebraska retail sites, and Valero promotes three.

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The USDA and Office of the U.S. Trade Representative on March 24 announced continued progress with the implementation of agriculture-related provisions of the U.S.-China Phase One Economic and Trade Agreement, including those related to DDGS.

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RFA: Casey's becomes 5,000th station to offer E85

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By Renewable Fuels Association

March 23, 2020

The number of fuel stations now offering Flex Fuel E85 has reached an important milestone. A Casey's store in Ankeny, Iowa, has become the 5,000th station nationwide to sell E85, according to the Renewable Fuels Association.

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The U.S. government on March 18 relaxed regulations to allow producers of fuel ethanol and beverage alcohol to shift production to ethanol-based hand sanitizers. Days later, several ethanol plants are taking action to help combat COVID-19.

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UNICA, the Brazilian sugarcane industry association, recently released ethanol production and sales data for February and has announced its members are donating alcohol for use in hand sanitizer to help contain the spread of COVID-19.

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The ethanol industry is struggling with demand destruction resulting from COVID-19, an oil price war, ongoing trade disputes, and SREs. “Folks, this is not going to be good, and our biggest concern by far is our people," said Al-Corn CEO Randy Doyal.

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Ethanol producers are being impacted by the pandemic, oil war, trade disputes and small refinery waivers. With prices reaching as low as 94 cents per gallon as of March 18, ethanol producers are bracing for difficult decisions and possible closures.

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In response to the developing situation with COVID-19, the USGC said it will postpone all international travel and carefully review all within country travel until the end of March. USGC's Washington, D.C., headquarters remains open.

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The Canadian Parliament approved the U.S-Mexico-Canada (USMCA) trade agreement on March 13. The trade pact, which replaces the North American Free Trade Agreement, has now been ratified by all three countries.

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The U.S. Energy Information Administration slightly increased its forecast for 2020 ethanol production in its latest Short-Term Energy Outlook, released March 11. The 2021 forecast, however, was unchanged.

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A new study releaesd March 11 finds despite challenges, Iowa biofuel production continues to have a significant impact on Iowa's economy, supporting over 48,000 jobs and more than $2.4 billion in household income.

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The U.S. exported 151.23 million gallons of ethanol and 976,688 metric tons of distillers grains in January, according to data released by the USDA Foreign Agricultural Service on March 6. Exports of both products were up from the previous month.

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The exhibition area at the India Auto Expo, India's largest auto show held every two years, covers an area equal to 15 football fields. The USGC and U.S. industry partners invited attendees of the event to learn more about the benefits of ethanol.

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The U.K. Department for Transport opened a public consultation on March 4 on a proposal to allow E10 to be sold within the country. The U.K. currently limits the ethanol content of gasoline to 5 percent.

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South Dakota Gov. Kristi Noem recently proclaimed Feb. 25 to be “Premium E30 Day.� Members of the South Dakota Farmers Union and Glacial Lakes Energy Cooperative joined together in Pierre, South Dakota, to celebrate the day.

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The U.S. Grains Council has helped Promexa, a rice processing company in the port of Veracruz, Mexico, bring U.S. dried distillers grains with solubles to the southern region of the country.

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Nebraska Gov. Pete Ricketts sent a letter to the CEOs of Fiat Chrysler Automobiles N.V., Ford Motor Co., and General Motors Co. on Feb. 11 urging the automakers to increase production of passenger vehicles designed to run on higher ethanol blends.

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Members of the U.S. Grains Council arrived in Tampa, Florida, for the organization's winter meeting in mid-February, where they concentrated on drivers of global demand and how they affect markets overseas in which the Council does business.

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U.S. ethanol stocks set a new record at 24.781 million barrels for the week ending Feb. 14, according to data released by the U.S. Energy Information Administration on Feb. 20. Ethanol production for the week was at 1.04 million barrels per day.

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FROM THE MARCH ISSUE: A technical and economic analysis of eight fractionation techniques shows cost, profitability and coproduct quality comparisons.

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Driving Demand in 2020 and Beyond

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By Emily Skor

February 19, 2020

FROM THE MARCH ISSUE: Emily Skor highlights Growth Energy's collaboration with biofuels supporters to promote ethanol, expand use of E15 and develop new export markets.

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The breadth and depth of the Southeast Asian market for U.S. corn and co-products are hard to imagine, but the incredible innovation and regional demand potential is plain to see once on the ground, according to the U.S. Grains Council.

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A new study conducted by ABF Economics for the Minnesota Bio-Fuels Association has determined Minnesota's ethanol industry contributed approximately $2.31 billion to the state's gross domestic product (GDP) last year.

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FROM THE MARCH ISSUE: Myths and misinformation about ethanol and its effect on health and the environment need to be corrected to expand higher blends.

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Seeing New Markets Clearly in 2020

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By Ron Lamberty

February 17, 2020

FROM THE MARCH ISSUE: Gasoline retailers, including small chains and single-stores, offer important feedback and input for expanding E15's use in the United States.

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Located in Nicaragua, the operation includes 60,000 to 70,000 head of cattle, and uses U.S. corn rolled and mixed with mombasa, a tropical grass.

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The Nebraska Ethanol Board's third E15 Retailer Workshop is coming up Feb. 20 in Lincoln.

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The U.S. Grains Council is specifically targeting the aquaculture industry in Southeast Asia as one of the next big demand growth opportunities for U.S. dried distillers grains with solubles (DDGS).

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Cooperative Producers Inc. has added E15 at its fuel sites in Axtell, Nebraska, and Red Cloud, Nebraska. These additions are CPI's fifth and sixth locations selling E15 in the state including locations in Clay Center, Funk, Giltner, and Juniata.

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Panel discussions during the second day of the 2020 National Ethanol Conference in Houston, Texas, began by exploring new uses for ethanol.

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