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Alto Ingredients: Diversification strategy pays off in Q1

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By Erin Krueger

May 10, 2022

Feedstocks Business Operations Markets Coproducts 

Alto Ingredients Inc. released Q1 2022 financial results on May 9, reporting positive gross margin and adjusted EBITDA for the three-month period. Mike Kandris, CEO of Alto, credited the company's diversification efforts in achieving those results.

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The EIA maintained its forecast for 2022 fuel ethanol production in its latest Short-Term Energy Outlook, released May 10. The outlook for 2023 production was reduced, while ethanol blending forecasts for both years were maintained.

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UNICA, the Brazilian sugarcane industry association, has announced sugarcane processing and ethanol production were down during the first two weeks of the 2022-'23 harvest season, which began April 1. Ethanol sales, however, were up.

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The STB on May 6 announced it will require certain railroads to meet additional reporting requirements as part of an initial action aimed to improve rail service delays that have severely impacted several industries, including ethanol producers.

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Verbio AG on May 6 celebrated the opening of its biorefinery in Nevada, Iowa. The facility began producing RNG from corn stover on an industrial scale in late 2021 and will soon begin producing corn ethanol.

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Total operable biofuels production capacity for ethanol, biodiesel, renewable diesel and related fuels expanded to 21.123 billion gallons per year in February, according to the EIA. Total feedstock consumption was at 24.348 billion pounds.

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The Andersons Inc. on May 3 reported that its renewables segment reported record EBITDA for Q1 2022. Production volumes for ethanol and corn oil were both up, with renewable feedstocks and coproduct merchandising well above expectations.

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U.S. fuel ethanol production expanded by nearly 1 percent the week ending April 29, according to data released by the U.S. Energy Information Administration on May 4. Stocks of fuel ethanol were down slightly.

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Green Plains released Q1 2022 financial results on May 2, reporting that the company was negatively impacted by low margins, rail delays, and other factors during the period. Margins have improved significantly, however, moving into Q2.

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Fluid Quip Technologies, a majority owned subsidiary of Green Plains Inc., has unveiled DCO+, a new technology to achieve record-high low-carbon renewable corn oil recovery in drygrind biofuel facilities.

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The Renewable Fuels Association and Growth Energy are calling on the the Surface Transportation Board and the railroad industry to resolve rail service disruptions that are negatively impacting the ethanol industry.

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U.S. fuel ethanol production was up nearly 2 percent the week ending April 22, according to data released by the U.S. Energy Information Administration on April 27. Weekly ending stocks of fuel ethanol were down nearly 2 percent.

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Valero Energy Corp. released first quarter 2022 financial results on April 26, reporting both its ethanol and renewable diesel segments were profitable during the three-month period. Production of both fuels was up.

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Archer Daniels Midland Co. on April 26 reported that its carbohydrates solutions business segment, which includes both its wet mill and dry mill ethanol plants, delivered improved financial results for the first quarter of 2022.

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The Iowa Senate and Iowa House of Representatives on April 26 each voted to approve legislation introduced by Iowa Gov. Kim Reynolds in January that will increase consumer access to higher blends of ethanol and biodiesel.

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The Aemetis Biogas subsidiary is ready to launch Phase 2 biogas production by completing construction of its third digester and successfully testing the 7-mile biogas pipeline section to be used by the next five dairy digesters.

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The U.S. EPA has released updated renewable identification number (RIN) data, reporting that 1.82 billion RINs were generated under the RFS in March, up from 1.65 billion that were generated during the same month of last year.

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UNICA, the Brazilian sugarcane industry association, has released final data for the 2021-'22 harvest season, which ended March 31. Sugarcane processing and the production of sugarcane ethanol were down for the year. Corn ethanol production was up.

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Ethanol Producer Magazine's Editor previews the May issue, which includes a profile on Calgren Renewable Fuels; the industry's continued adoption of solar and wind power; recovering energy from DDGS dryer exhaust; and ICM's high-protein platform.

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Green Plains Inc. on April 20 announced that product and technology innovation efforts have led to the production of greater than 60 percent protein concentrations with yields as high as 4 pounds per bushel at its Wood River, Nebraska, biorefinery.

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Today's corn ethanol now provides nearly three times the energy used to produce it, according to a new analysis by the Renewable Fuels Association, with some biorefineries approaching a four-to-one energy ratio.

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U.S. fuel ethanol production was down nearly 5 percent the week ending April 15, according to data released by the U.S. Energy Information Administration on April 20. Ethanol stocks were down approximately 2 percent.

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In the lower Central Valley, Calgren Renewable Fuels makes three biofuels—ethanol, biodiesel and renewable natural gas—and the latter operation just keeps growing.

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With the decarbonization movement underway, ethanol producers installing solar and wind power offer a blueprint—and benefit-reveal—for carbon intensity reduction. And they're not doing renewables alone, but in parallel with other low-CI strategies.

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The IEA in March released a report predicting that global biofuels supply will reach 3.3 million barrels per day by 2026, up from 2.6 million barrels per day in 2020. The forecast was included in the IEA's Oil 2021 report.

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A broad, bipartisan majority of Iowans support the ethanol industry and believe it is critical to the future of agriculture, the health of the state's economy, and improving environmental outcomes, according to a new survey.

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Carbon Capture Magazine's National Carbon Capture Conference & Expo will be held in Des Moines, Iowa at the Iowa Event Center on Nov. 8-9, 2022. Speaker presentation abstracts are being accepted through July 8.

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Recovering to Reduce

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By Melissa Anderson

April 13, 2022

Today's ethanol producers are looking for ways to maximize their efficiency, cut costs and reduce their CI score. A Florida-based technology provider has found a way to help plants do all three by utilizing waste heat from DDGS dryer exhaust.

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Equipping for High-Protein

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By Katie Schroeder

April 13, 2022

Combining existing and new technologies, ICM is helping ethanol producers leap into high-protein feed production. The company is taking a unique approach to marketing, showing customers how its specialty equipment works to explain what it yields.

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The U.S. Energy Information Administration maintained its 2022 and 2023 forecasts for fuel ethanol production in its latest Short-Term Energy Outlook, released April 12. The forecasts for fuel ethanol blending were also unchanged.

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