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Valero reports strong Q2 for ethanol, renewable diesel segments

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By Erin Krueger

July 29, 2021

Business Operations 

Valero Energy Corp. released second quarter financial results on July 29, reporting improved earnings for its ethanol and renewable diesel business segments. Ethanol production volumes and renewable diesel sales volumes were both up in Q2.

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U.S. fuel ethanol production was down more than 1 percent the week ending July 23, according to data released by the U.S. Energy Information Administration on July 28. Stocks of fuel ethanol were up 1 percent.

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In a letter sent on July 27 to President Joe Biden, Renewable Fuels Association members from across the country memorialized their commitment to ensuring ethanol achieves a net-zero carbon footprint, on average, by 2050 or sooner.

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Archer Daniels Midland Co. released second quarter financial results on July 27, reporting that earnings for its Carbohydrates Solutions segment, which includes ethanol, were almost double those reported for the same period of last year.

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Poet Bioprocessing – Alexandria is now producing purified alcohol following an improvement project launched in late 2020. The facility will produce purified alcohol, including grain neutral spirits (GNS) and USP-grade alcohol.

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Although sugarcane processing is down in the south-central region of Brazil this harvest season, the production of anhydrous ethanol is up significantly, according to data released by UNICA, the Brazilian sugarcane industry association.

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Carbon reduction incentives are improving the payback on cogeneration for ethanol plants. Only a fraction of U.S. producers are currently doing it, but that could change as the industry has new reasons to get more efficient with heat and power.

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The Summit Carbon Solutions' pipeline, a visionary multi-billion dollar project in the making representing about 15% of the U.S. ethanol industry, will allow producers to permanently sequester their carbon dioxide and cut their CI scores in half.

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Aspiring Univere Corp., a spinout of the University of Illinois at Urbana-Champaign, has created a massive database of every plot of farmland across the globe. The tool could help ethanol plant managers better anticipate local grain availability.

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Aemetis' refinery will produce renewable diesel and renewable jet fuel from almond orchard and forest wood waste, which will also yield a negative carbon sugar source for ethanol. The Keyes, California, plant is also ditching fossil-based power.

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The DOE on July 19 released its 2021 U.S. Energy Employment Report, which shows fuel ethanol employment fell slightly last year, but at a much lower rate than the overall U.S. fuels sector. Corn ethanol employment is expected to rebound this year.

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New Energy Blue on July 20 announced plans to construct a cellulosic ethanol biorefinery that utilizes Inbicon technology on a 155-acre site near Mason City, Iowa. Construction is expected to begin next year, with commissioning scheduled for 2024.

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U.S. fuel ethanol production fell by approximately 1 percent the week ending July 16, according to data released by the U.S. Energy Information Administration on July 21. Stocks of fuel ethanol were up nearly 7 percent.

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The U.S. EPA has published updated renewable identification number (RIN) generation data, reporting that more than 1.77 billion RINs were generated under the RFS in June, up from 1.51 billion generated during the same month of last year.

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BBI International and Ethanol Producer Magazine on July 14 recognized Steve Markham and Kurt Rosentrater for their contributions to the U.S. ethanol industry during the general session of the 2021 International Fuel Ethanol Workshop & Expo (FEW).

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U.S fuel ethanol production fell by more than 2 percent the week ending July 9, according to data released by the U.S. Energy Information Administration on July 14. Weekly ending stocks of fuel ethanol were down slightly.

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Summit Agricultural Group, through its investment affiliate Summit Ag Investors, has announced the acquisition of Prairie Horizon Agri-Energy. Summit will retorfit the facility to produce ethanol and protein ingredients from wheat feedstock.

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CoBank's Knowledge Exchange released its second quarter report on July 8, reporting that the U.S. fuel ethanol sector outperformed expectations during the three-month period and is well positioned for the second half of 2021.

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The 2021 International Fuel Ethanol Workshop & Expo (FEW), the ethanol industry's largest conference, will feature more than 150 speakers, next week, July 13-15, in Des Moines, Iowa. More than 450 biofuel producers are set to attend.

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FS, a Brazilian company that produces ethanol, animal nutrition and bioenergy products exclusively from corn, has announced plans to deveop a bioenergy with carbon capture and storage (BECCS) project at its Lucas do Rio Verde plant.

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U.S. fuel ethanol production was up approximately 1 percent the week ending July 2, according to data released by the U.S. Energy Information Administration on July 8. Weekly ending stocks of fuel ethanol fell by 2 percent.

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Novozymes is launching two new yeast and fiber products that aim to boost ethanol plant efficiency, counteract production challenges, and allow facilities to further diversify their product offerings.

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UNICA, the Brazilian sugarcane industry association, has announced the volume of sugarcane processed by mills in the south-central region was down 14 percent during the first half of June. Ethanol production was also down, but sales were flat.

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Green Plains Inc. on July 1 announced its wholly owned subsidiary Green Plains Central City LLC has broken ground on the construction of Fluid Quip Technologies' MSC system. Central City is the third Green Plains location to install MSC.

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Whitefox Technologies has announced that Golden Grain Energy LLC will install a Whitefox ICE membrane dehydration system at its 120 MMgy plant in Mason City, Iowa. The technololgy will help the facility lower its carbon intensity (CI) score.

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The U.S. exported 70.39 million gallons of ethanol and 1.04 metric tons of distiller grains in May, according to data released by the USDA on July 2. Ethanol exports were down from last year, but distillers grains exports were up significantly.

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The U.S. EIA released its latest Monthly Biofuels Capacity and Feedstock Update on June 30, reporting that production capacity for both fuel ethanol and “other� biofuels increased in April. Capacity for biodiesel held steady.

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U.S. fuel ethanol production was up 1 percent the week ending June 25, according to data released by the U.S. Energy Information Administration on June 30. Weekly ending stocks of fuel ethanol expanded by more than 2 percent.

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Ship & Shore Environmental Inc. now offers clients in the ethanol, biofuels and biogas sectors a comprehensive engineering package to assist with their volatile organic compound (VOC) and odor abatement efforts.

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Brazilian energy company Raizen S.A. on June 25 announced plans to invest in the development of a second cellulosic ethanol plant. The proposed facility is expected to have a nameplate capacity of 82 MMly (21.66 MMgy).

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