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Gevo's Luverne facility to remain idle

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By Erin Krueger

May 13, 2020

Business Operations Coproducts 

Patrick Gruber, president and CEO of Gevo Inc., said on May 12 he expects the company's biorefinery in Luverne, Minnesota, to remain idle for the remainder of the year. The company's plant in Silsbee, Texas, however, continues to operate.

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Neil Koehler, president and CEO of Pacific Ethanol Inc., announced on May 13 the company is gradually increasing production as fuel demand increase and margins improve. The company is now operating at approximately 50 percent capacity.

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U.S. ethanol production was up more than 3 percent the week ending May 8 while ending stocks of fuel ethanol fell by nearly 6 percent, according to data released by the U.S. Energy Information Administration on May 13.

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LucasE3 has announced an agreement with Brazil-based Maracajá Bioenergia to build a new corn ethanol plant in the northern region of the state of Mato Grosso near the municipality of Matupá. Construction is expected to start later this year.

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UNICA, the Brazilian sugarcane industry association, recently announced that ethanol revenue for mills in the south-central region of the country was down almost 50 percent during the first half of April due to impacts from the COVID-19 pandemic.

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The USDA is predicting 5.2 billion bushels of corn will go to ethanol production during the 2020-'21 crop year, up 250 million bushels when compared to the estimated volume of corn that went to ethanol production during the 2019-'20 crop year.

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A fourth COVID-19 stimulus package known as the HEROES Act was introduced in the U.S. House of Representatives on May 12. The bill includes dedicated relief for biofuels producers by establishing the Renewable Fuel Reimbursement Program.

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The COVID-19 pandemic is expected to impact U.S. electricity consumption. The EIA's latest Short-Term Energy Outlook, released on May 12, predicts total U.S. electric power sector generation will decline by 5 percent in 2020.

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Pinnacle Renewable Energy has broken ground on a 360,000-metric-ton-per-year pellet plant in Demopolis, Alabama. Construction has also resumed on the company's 200,000-metric-ton-per-year facility in High Level, Alberta.

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Summarizing stories from the May/June issue of Biomass Magazine, Editor Anna Simet thanks readers, advertisers and contributors for supporting industry trade journal during COVID-19 pandemic.

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A fourth COVID-19 stimulus package known as the HEROES Act was introduced in the U.S. House of Representatives on May 12. The bill includes dedicated relief for biofuels producers by establishing the Renewable Fuel Reimbursement Program.

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Global Clean Energy Holdings Inc. has acquired the Alon Bakersfield Refinery in California. GCEH will immediately begin retooling the refinery to produce renewable diesel from organic feedstocks such as vegetable oils.

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Lystek International Ltd. has announced its multi-year food waste-to-energy demonstration project in Goleta, California, has been showing positive results. The project includes Simcon de-packaging technology and skid-mounted anaerobic digesters.

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The U.S. Energy Information Administration increased its forecast for 2020 ethanol production, but lowered its prediction for 2021 ethanol production in its latest Short-Term Energy Outlook, released on May 12.

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Midwest AgEnergy Group, the parent company of the Blue Flint, is evaluating alternative thermal energy and utility options after plans were announced to close Coal Creek Station, a power plant that provides water and steam to Blue Flint.

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Covanta has confirmed construction is once again under way at its Earlsgate WtE facility in the U.K. following a brief COVID-19-related delay. The company also noted that it is in the early stage of developing additional WtD capacity in the U.S.

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US ethanol industry disappointed in new Colombian duties

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By U.S. Grains Council, Growth Energy and the Renewable Fuels Association

May 11, 2020

The Colombian Ministry of Commerce, Industry, and Tourism (MINCIT) has announced it will impose duties of $0.1997/gallon on U.S. ethanol exports to Colombia. The USGC, Growth Energy and RFA said the duties are unjustified.

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A group of 11 ag and biofuel groups sent a letter to House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell on May 11 asking congress to provide COVID-19 relief for ethanol and biodiesel producers.

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The Biogenic CO2 Coalition is asking lawmakers to direct the U.S. EPA to promptly publish a rule that states neither agricultural biomass nor woody biomass contribute to excess greenhouse gases (GHGs) in the atmosphere.

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Texas-based oil refiner CVR Energy announced on May 7 it is considering converting some of its refining units to renewable diesel production as a way to offset costs associated with Renewable Fuel Standard compliance.

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The Biogenic CO2 Coalition is asking lawmakers to direct the U.S. EPA to promptly publish a rule that states neither agricultural biomass nor woody biomass contribute to excess greenhouse gases (GHGs) in the atmosphere.

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A group of 70 mayors representing cities and towns in the Midwest sent a letter to U.S. EPA Administrator Andrew Wheeler on May 11 urging him to reject any requests to waive 2020 Renewable Fuel Standard blending requirements.

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Renewable diesel producer Neste Corp. furthered expansion of its raw material supply chain through acquisition of the Dutch Count Companies BV's Count Terminal Rotterdam BV and its supporting entities, part of the First Dutch Group of Peter Goedvolk.

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Business Briefs

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By Biomass Magazine

May 10, 2020

Industry news and announcements from the May/June issue of Biomass Magazine, including announcements from: the European Biogas Association, Vecoplan, Morbark, FutureMetrics, Drax, USIPA and more.

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Biomass facilities have been deemed 'essential critical infrastructure' by the U.S. Department of Homeland Security, meaning that not only are they exempt from stay-at-home directives, but they also have a special responsibility to keep operating.

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Innovations in biomass harvesting, hauling and transport are reducing raw material costs for end users. From large-scale harvests to small-scale logging, foresters are pairing smart technique with novel equipment to get jobs done more efficiently.

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IRFA encourages Iowa retailers to apply for HBIIP grants

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By Iowa Renewable Fuels Association

May 08, 2020

The USDA has released guidance on the Higher Blends Infrastructure Incentive Program (HBIIP) and the Iowa Renewable Fuels Association is offering support and encouraging Iowa fuel retailers to take steps now to streamline the application process.

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Leaders of the Governors' Biofuels Coalition sent a letter to U.S. EPA Administrator Andrew Wheeler on May 8 urging the agency to reject a recent request from five oil state governors to waive 2020 Renewable Fuels Standard blending obligations.

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Increasing wood fiber costs continue to challenge western Canada's export pellet sector. In particular, producers continue to struggle with fiber availability and quality as a result of sawmill curtailments in British Columbia.

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Leaders of the Governors' Biofuels Coalition sent a letter to U.S. EPA Administrator Andrew Wheeler on May 8 urging the agency to reject a recent request from five oil state governors to waive 2020 Renewable Fuels Standard blending obligations.

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