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Progress on trade deals could be good news for ethanol industry

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By Erin Krueger

December 03, 2018

Policy Business Markets Coproducts 

Over the past few days, the Trump Administration has announced progress on trade deals with Canada, Mexico and China that could have a positive impact on export markets for U.S. ethanol and distillers dried grains with solubles (DDGS).

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A new proposal released by the Ontario government indicates the province could require gasoline to be blended with 15 percent ethanol as soon as 2025. The U.S. ethanol industry has applauded news of the proposal.

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U.S. Grains Council and USDA officials traveling as part of a USDA Agriculture Trade Mission met with ethanol industry officials in South Korea earlier this month, urging them to reexamine the outlook for the country's fuel ethanol use policy.

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Mike O'Brien, vice president of market development for Growth Energy, says that with seasonal restrictions on E15 sales potentially being lifted in time for next summer's driving season, interest in selling E15 has increased among gasoline retailers.

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FROM THE DECEMBER ISSUE: Tariffs in China and Brazil have deeply affected U.S. ethanol exports, but other markets remain, new ones are opening and opportunities still abound for the world's lowest-cost octane.

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FROM THE DECEMBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about how tariffs are affecting ethanol exports, a look at potential railroad congestion, year-round E15 sales, and more.

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The European Commission”s new proposals for reducing the EU”s so-called “protein deficit” have missed a golden opportunity to highlight an important domestic producer of protein: crop-based ethanol production.

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Fresh off a trip to Mexico to tout the benefits of ethanol to retailers, the American Coalition for Ethanol's Senior Vice President Ron Lamberty said interest in ethanol among the country's retailers is piqued.

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FROM THE DECEMBER ISSUE: Railroad delays in 2014 forced ethanol plants to slow production or find other ways to move their products. Four years later, the situation has improved, but rail traffic is on the rise again.

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FROM THE DECEMBER ISSUE: The Oil Industry's sanctimonious attacks on E15 are false.

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FROM THE DECEMBER ISSUE: There's movement at last to obtain an RVP waiver for E15, but it might not come in time to make a difference next year.

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FROM THE DECEMBER ISSUE:Brazilian sugarcane ethanol can be a major part of U.S. renewable fuels industry.

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UNICA, the Brazilian sugarcane industry association, has announced that domestic sales of hydrous ethanol set a new record during the second half of October, reaching 1.07 billion liters (282.66 million gallons).

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A discussion draft of the 21st Century Transportation Fuels Act was released on Nov. 21. The bill aims to sunset the RFS and enact a national octane specification. Those in the biofuels industry are criticizing the bill for its treatment of the RFS.

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True Value

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By Jerry Shurson

November 20, 2018

FROM THE DECEMBER ISSUE: The actual nutritional and economic appraisal of DDGS is more complex than simply measuring profat content.

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There has been a media blitz lately by the oil industry saying that ethanol demand has been unaffected by the U.S. EPA's rampant grants of RFS exemptions to small refineries. Don't be fooled by these claims, according to the RFA.

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ACE participates in Mexico City ethanol workshop

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By American Coalition for Ethanol

November 20, 2018

American Coalition for Ethanol Senior Vice President Ron Lamberty traveled to Mexico City in mid-November for the final ethanol technical workshop held this year for Mexican petroleum equipment installers and retailers.

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Geoff Cooper transitioned into the role of president and CEO of the Renewable Fuels Association last month. He recently discussed his goals for the organization and the ethanol industry with Ethanol Producer Magazine.

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The European Parliament approved new targets for renewables, energy efficiency and second-generation biofuels when it voted to confirm a provisional agreement reached with the European Council in June on a revised Renewable Energy Directive (REDII).

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The U.K. Department for Transport has published preliminary data on its Renewable Transport Fuel Obligation for a portion of 2018, including data on how much ethanol met U.K. sustainability requirements.

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Ethanol Facts, a new online resource for information about renewable ethanol, launched Nov. 6 as part of an effort to help inform the public about the production, use, sustainability and importance of ethanol as a renewable fuel.

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On Nov. 8, Growth Energy announced that American drivers have driven another billion miles, totaling 6 billion, on E15—a fuel with 15 percent biofuel that is approved for all 2001 and newer vehicles.

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Green Plains Inc. has released third quarter financial results, reporting a $12.5 million net loss. The company also discussed the sale of several assets, plant improvement projects, and the importance of E15 and export markets to the industry.

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USGC leadership visits Mexico

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By U.S. Grains Council

November 07, 2018

Leaders from the U.S. feed grains value chain traveled together to Mexico last week to meet with longtime customers and incoming officials from the Mexican government on the heels of the recently-concluded U.S.-Mexico-Canada Agreement negotiations.

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The U.S. Energy Information Administration has released the November edition of its Short-Term Energy Outlook, maintaining its October forecast for 2018, but increasing its ethanol production forecast for next year.

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Cooperative Producers Inc, a farmer-owned cooperative, has added E15 at its fuel site in Funk, Nebraska, according to the Nebraska Ethanol Board. This is CPI's third location selling E15 in Nebraska.

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Archer Daniels Midland Co. has released third quarter 2018 financial results, reporting significantly increased net earnings overall. Results for the company's bioproducts segment, however, were down due to weak ethanol margins.

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The Andersons Inc. has released third quarter 2018 financial results, reporting strong quarterly performance for its ethanol group, but cautioning that the group's strong performance is not expected to last into the fourth quarter or 2019.

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Growmark Energy offers pre-blended E15 at 6 terminals

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By Renewable Fuels Association

November 05, 2018

The Renewable Fuels Association has announced that Growmark Energy has started offering pre-blended E15 at its company-owned terminals in Amboy, Ashkum, and Petersburg, Illinois, Fort Dodge, Iowa, and St. Joseph, Missouri.

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