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CoBank highlights ethanol industry's strong Q2

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By Erin Krueger

July 14, 2022

Feedstocks Policy Business Operations Markets Coproducts 

The U.S. ethanol industry delivered a very strong Q2, according to the latest quarterly report issued by CoBank's Knowledge Exchange on July 14. Ethanol profits and production remain robust despite record gas prices, according to the report.

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The U.S. Energy Information Administration increased its forecasts for 2022 and 2023 fuel ethanol production in its latest Short-Term Energy Outlook, released July 13. The forecast for 2023 fuel ethanol consumption was also increased.

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U.S. fuel ethanol production fell nearly 4 percent the week ending July 8, according to data released by the U.S. Energy Information Administration on July 13. Ethanol stocks expanded by nearly 1 percent.

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European ethanol producer CropEnergies AG on July 6 released financial results for its fiscal first quarter, reporting higher ethanol production volumes, increased revenues and improved operating profit.

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The U.S. exported 147.06 million gallons of ethanol and 966,108 metric tons of distillers grains in May, according to data released by the USDA Foreign Agricultural Service on July 7. Exports of ethanol were up when compared to May 2021.

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U.S. fuel ethanol production fell by nearly 1 percent the week ending July 1, according to data released by the U.S. Energy Information Administration on July 7. Ethanol stocks were up more than 3 percent.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol production picked up during the first half of June. Total production for the current harvest season, however, is down when compared to last year.

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U.S. operable production capacity for ethanol and renewable diesel expanded in April, while biodiesel capacity fell slightly, according to data released by the U.S. EIA on July 5. Feedstock consumption was up when compared to April 2021.

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The U.S. Department of Energy on June 28 released its 2022 U.S. Energy and Employment Report, which includes new data on employment in the biofuels and bioenergy sectors. In general, employment in these sectors was up when compared to 2020.

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The USDA recently released its Grain Crushings and Co-Products Production report for June, reporting that corn use for fuel ethanol in April was down when compared to the previous month, but up when compared to April 2021.

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The USDA is accepting applications for a new pilot program created under the Bipartisan Infrastructure Law to support the development of biobased products that have lower carbon footprints and increase the use of renewable agricultural materials.

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IFC has announced on June 28 it is providing a $50 million financing package to Brazil-based Usina Santa Adélia to help expand the company's ethanol production and support the renewal of sugarcane plantations.

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U.S. fuel ethanol production was down slightly the week ending June 24 while stocks were down more than 3 percent, according to data released by the U.S. Energy Information Administration on June 29.

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A study released June 28 by the DOE found that the U.S. ethanol industry once again leads the nation in the share of its workforce that is comprised by military veterans, with one in six employees previously serving in the armed forces.

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Gevo Inc., a renewable fuels company focused on the production of sustainable aviation fuel (SAF), on June 27 provides updates on the company and projects currently in process, including the company's Net Zero 1 faciity.

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The government of Rio Grande Do Sul, Brazil's southernmost state, on June 20 announced an agreement with Brazilian biodiesel producer BSBios for the development of a grain ethanol plant that will process corn, wheat, triticale, rice and sorghum.

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The U.S. EPA has released data showing that nearly 1.84 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in May, up from 1.72 billion generated during the same month of last year.

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Renewable ethanol from ePURE members reduced GHG emissions by 77 percent compared to fossil fuel in 2021, according to the latest audited producer data. ePURE also said ethanol refineries produced more feed than fuel.

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UNICA, the Brazilian sugarcane industry association, has released data showing that sugarcane processing and ethanol production during the second half of May were roughly flat with last year. Ethanol sales were down slightly.

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U.S. fuel ethanol production expanded by 2 percent the week ending June 10, according to data released by the U.S. Energy Information Administration on June 15. Weekly ending stocks of fuel ethanol were down nearly 2 percent.

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Some of the biggest names in ethanol kicked off the general session of the 38th International Fuel Ethanol Conference & Expo on June 14 with discussions focused on policy, carbon and new market opportunities.

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Gevo Inc. announced that its RNG project in Northwest Iowa has been producing biogas and is now upgrading and injecting RNG into the natural gas pipeline. The project generates RNG from dairy cow manure supplied by three dairy farms.

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Clariant on June 14 announced that it has produced the first commercial cellulosic ethanol at its sunliquid production plant in Podari, Romania. The entire offtake is contracted with a multi-year agreement to Shell.

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Aemetis Inc. and PG&E on June 10 held a ribbon cutting ceremony to celebrate the commissioning of Aemetis's RNG cleanup and compression unit and interconnection with PG&E's gas pipeline for the Aemetis Biogas Central Dairy Digester Project.

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ACE has introduced a new carbon intensity (CI) calculator to help its members understand the CI of their farms and ethanol operations along with a simplified version of the tool to raise awareness about factors impacting the CI of ethanol.

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SUEZ Water Technologies & Solutions offers the ethanol industry three key services: deposit control, cleaning and corn oil extraction. The company offers a holistic approach to deposit control, tailoring solutions for each ethanol plant it serves.

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Aemetis Inc. on June 9 announced that its wholly owned subsidiary, Aemetis Biogas LLC, connected its third anaerobic digester via pipeline to the company's main RNG gas cleanup unit located at the Aemetis Advanced Fuels Keyes facility.

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The Renewable Fuels Association will have an active presence during the 38th annual Fuel Ethanol Workshop & Expo conference, taking place June 13–15 in Minneapolis. This year, RFA has three staff members speaking at the conference.

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The U.S. Energy Information Administration slightly reduced its forecast for 2022 fuel ethanol in its latest Short-Term Energy Outlook, released June 7. The agency's forecast for fuel ethanol production in 2023 was maintained.

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U.S. fuel ethanol production was down 3 percent the week ending June 3, according to data released by the U.S. Energy Information Administration on June 8. Weekly ending stocks of fuel ethanol expanded by nearly 3 percent.

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