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USDA: Corn use for fuel ethanol down slightly in June

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By Erin Krueger

August 23, 2019

Business Operations Coproducts 

The USDA recently released its Grain Crushings and Co-Products Production report with data from June, reporting that corn consumed for fuel ethanol was down slightly from both the previous month and June 2018.

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Poet announced today it will idle production at its bioprocessing facility in Cloverdale, Indiana, due to recent decisions by the administration regarding SREs. The company also said it has reduced production at half of its 28 biorefineries.

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FROM THE SEPTEMBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about emissions control, pump design and technology, finances and risk management, and more.

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FROM THE SEPTEMBER ISSUE: Maintaining compliance while optimizing costs and operations is a balancing act for ethanol producers.

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FROM THE SEPTEMBER ISSUE: Increasing efficiency by taking advantage of the latest pump designs and technology.

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FROM THE SEPTEMBER ISSUE: Growth Energy's ad campaign part of an effort to curtail EPA's abuse of small refinery exemptions.

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The U.S. Energy Information Administration has maintained its forecasts for 2019 and 2020 ethanol production in its latest Short Term Energy Outlook, released Aug. 6. Short-term forecasts for ethanol consumption were also maintained.

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FROM THE SEPTEMBER ISSUE: Plants that planned ahead when margins were better are leading the industry today.

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Business Briefs

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By Ethanol Producer Magazine

August 09, 2019

FROM THE SEPTEMBER ISSUE: BIO restructures to add public affairs executive vice president, Nelson Engineering undergoes name change, and Midwest AgEnergy's 12-year safety record.

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Aemetis Inc. released second quarter financial results Aug. 8, reporting growth for its biodiesel business in India, outlining improvement projects underway at its corn ethanol plant, and discussing planned RNG and cellulosic ethanol production.

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The Andersons Inc. released second quarter financial results Aug. 7, reporting that its ethanol group remained profitable during the three-month period. Ethanol earnings, however, were down significantly due to the poor margin environment.

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During an Aug. 6 earnings call, Green Plains officials discussed progress with the Project 24 initiative, criticized Trump's EPA and trade policies for harming the ethanol industry, and indicated the company continues to explore the sale of assets.

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Pacific Ethanol president and said the company's second quarter crush margin improved, but the industry is still suffering from oversupply.

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Performance Matters

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By Evan Almberg

August 01, 2019

FROM THE AUGUST ISSUE: Assessing boiler upgrade, retrofit and replacement considerations.

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FROM THE AUGUST ISSUE: Finances, technology, streamlined processes and more take the stage at FEW 2019.

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Plymouth Energy, a 50 MMgy corn ethanol plant located in Merrill, Iowa, posted a notice to its website July 24 announcing it has idled production. The company cited negative margins and other economic factors as the reasons for its decision.

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Valero Energy Corp. released second quarter financial results on July 25, reporting mixed results for its biofuel segments. Income from the ethanol segment was down, but income from renewable diesel was up. Production volumes of both fuels increased.

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The production of anhydrous ethanol was up at mills in the south-central region of Brazil during the first half of June. The production of hydrous ethanol, however, was down, according to UNICA, the Brazilian sugarcane industry association.

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A new report from CoBank's Knowledge Exchange Division July 2 finds that operating margins for ethanol producers will likely remain weak for the remainder of 2019. The outlook for exports, however, is more optimistic.

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After four years of construction and planning, Ringneck Energy & Feed's ethanol plant in Onida, South Dakota has come online. The 80 MMgy plant passed its performance test in early June. Work is ongoing to optimize the facility's operations.

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Lamberton, Minnesota-based Highwater Ethanol LLC recently published financial results for the second quarter of 2019 and announced plans to increase its annual production by more than 10 million gallons, to approximately 70 MMgy.

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FROM THE JULY ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about EPM's 2019 salary survey, a look at Greenfield's biogas use, training initiatives for ethanol producers in Nebraska, and more.

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FROM THE JULY ISSUE: Ethanol Producer Magazine reports the results of its 2019 Salary and Job Satisfaction Survey, with comparisons to previous years' figures.

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FROM THE JULY ISSUE: Greenfield Global's ethanol plant in Quebec supplements natural gas with biogas power produced through anaerobic digestion of organic waste from 27 nearby cities.

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FROM THE JULY ISSUE: The Nebraska Ethanol Board and the University of Nebraska-Lincoln bring targeted training to ethanol producers.

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FROM THE JULY ISSUE: A predictive technology from the paper mill industry is making its way into ethanol, tying into main databases to plan and troubleshoot.

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According to Jayne Kalbfleisch, technical development manager at Lallemand Biofuels and Distilled Spirits, one factor that may be robbing an ethanol plant of yield is stressed yeast. Kalbfleisch discussed the impact of stressed yeast at the FEW.

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UNICA, the Brazilian sugarcane industry association, has announced sales of hydrous ethanol reached a record 2.05 billion liters (541.55 million gallons) in May, up 50.64 percent when compared to sales during the same month of last year.

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The EIA's Short-Term Energy Outlook for June features increased forecasts for 2019 and 2020 ethanol production. The agency now predicts ethanol production will average 1.04 million barrels per day in 2019 and 1.05 million barrels per day in 2020.

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Kristen Gordon, director of reliability services at ICM Inc., presented ICM's best practices for managing ethanol plant shutdowns at the 2019 International Fuel Ethanol Workshop and Expo June 12 in Indianapolis.

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