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EIA: US ethanol production will fall sharply in Q2, Q3

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By Erin Krueger

April 07, 2020

Business 

The EIA on April 7 drastically lowered its outlook for 2020 ethanol production, predicting production will fall to 630,000 gallons per day during the second quarter and average 820,000 gallons per day for the full year.

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The Tenth Circuit Court of Appeals on April 7 rejected two petitions filed by Wynnewood Refining and HollyFrontier on March 24 requesting a rehearing en banc of the court's Jan. 24 ruling that struck down three SREs approved by the U.S. EPA.

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Gevo Inc. has engaged Citigroup Global Markets Inc. to assist the company in exploring financing for its operations, including its projects. Gevo is seeking financing to expand its production capabilities to supply renewable jet fuel and isooctane.

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U.S. ethanol is helping meet fuel supply needs in Australia—the result of a domestic supply gap and engagement by the U.S. Grains Council and its ethanol industry partners, Growth Energy and the Renewable Fuels Association.

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Rex American Resources announced on April 1 it has idled its Illinois-based One Earth Energy ethanol plant due to market conditions caused by the COVID-19 pandemic. The facility is the second owned by Rex to idle.

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ACE sent a letter to the EPA on April 3 urging the agency to address the shortcomings in its implementation of the RFS and outlining three steps the EPA has the authority to take to mitigate the economic fallout from COVID-19 in the biofuels sector.

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Several European biofuel trade groups on March 24 sent a letter to the European Commission offiical leading the European Green Deal expressing concern EU member states may reduce blending obligations during the ongoing COVID-19 pandemic.

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The USDA National Agricultural Statistics Service has requested a revision and extension of a currently approved information collection that, in part, provides data on the production of fuels from agricultural commodities.

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The U.S. EPA sent a letter to members of Congress on April 2 clarifying the temporary enforcement policy the agency announced on March 26 in response to the COVID-19 pandemic and offering assurances the agency continues to enforce its regulatons.

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Valero Energy Corp. announced March 19 that the Valero Energy Foundation has committed $1.8 million to support organizations on the front lines helping people most in need primarily in cities where the company operates.

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ADM has committed approximately $1 million to various organizations involved in the fight against COVID-19. ADM also has available funds for employees who have been adversely affected in this difficult time under its Colleague Emergency Fund.

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Greenfield Global helps fight the spread of COVID-19

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By Greenfield Global Inc.

April 02, 2020

Greenfield Global Inc., a producer of ethanol, speciality alcohols and solvents, has been producing and shipping vital alcohols and solvents at a record pace to combat the worldwide spread of COVID-19 since the beginning of the pandemic.

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KAAPA Ethanol sent a letter to stakeholders on March 31 announcing the company is idling its ethanol plant in Ravenna, Nebraska, due to impacts from the COVID-19 pandemic. KAAPA plans to continue operations at its Minden, Nebraska, facilty.

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The U.S. exported 194.16 million gallons of ethanol and 852,904 tons of distillers grains in February, according to data released by the USDA Foreign Agricultural Service on April 2. Exports of both products were up when compared to February 2019.

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Kurita Water Industries has completion of the merger of its consolidated subsidiaries in the United States, including U.S. Water Services Inc., Texas-based Kurita America Inc., Fremont Industries LLC, and Global Water Services Holding Co. Inc.

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As the coronavirus crisis forces people to stay at home and fuel prices plunge, retail stations remain open and are doing their best to weather the storm. Rutter's is being impacted by the outbreak, but plans to continue to add E15 in the future.

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To participate in the RFS program and generate RINs, renewable fuel producers must meet the registration requirements in Title 40 CFR Part 80. With the EPA approval, Ace Ethanol can now produce ethanol from corn kernel fiber and generate D3 RINs.

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OPINION: Finding hope in dark times

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By Cassie Mullen, director of market development at the Renewable Fuels Association

April 01, 2020

Emergencies like pandemics are times of disruption, trauma, and even fear. But they are also moments when people can come together to help each other. The reaction to COVID-19 from businesses and communities worldwide offers a bit of optimism.

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Two federal agencies relaxed regulations in March to allow producers of fuel ethanol help produce hand sanitizer to combat the ongoing COVID-19 outbreak. Several ethanol producers are already taking action help produce the much-needed product.

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The USDA on April 1 published a notice seeking comments on the most important agricultural innovation opportunities to be addressed in the near and long term. The comments will inform efforts related to the agency's Agricultural Innovaton Agenda.

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U.S. ethanol production fell by more than 16 percent the week ending March 27 to an average of 840,000 barrels per day, the lowest level since September 2013, according to data released by the U.S. Energy Information Administration on April 1.

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Weighty Corn LLC's first commercial implementation of its fiber separation process at Pannonia Bio Zrt's 130 MMgy fuel ethanol plant in Dunaföldvár, Hungary, has been deemed a success. The company hopes to implement the technology at other plants.

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U.S. gas station operators are bracing for the impact of COVID-19 on fuel sales, as same-store gasoline sales were down 2.4 percent nationwide for the week ending March 14, when compared to the same week last year, according to OPIS Demand Report.

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Gevo Inc. has suspended production at its bioreifnery in Luverne, Minnesota, due to the impact COVID-19 has had on the economy and has terminated 30 employees. Gevo expects to continue engineering efforts related to a renewable hydrocarbon plant.

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The U.S. EPA recently released RIN generation data for February, reporting that nearly 1.54 billion RINs were generated under the Renewable Fuel Standard during the month, including more than 36.77 million cellulosic RINs.

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The EPA and NHTSA released the final SAFE Vehicles rule on March 31. The rule sets CAFE and CO2 emissions standards for MY 2021-2026 passenger cars and light trucks. The ethanol industry criticized the rule for failing to address high octane fuels.

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The USDA expects U.S. farmers to plant 97 million acres of corn in 2020, up 8 percent or 7.29 million acres from 2019. Compared with 2019, planted acreage for corn is expected to be up or unchanged in 38 of the 48 estimating states.

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Hennepin, Illinois-based Marquis Energy sent a letter to its farmers and community members on March 27 announcing the company's ethanol plant is “economically and logistically positioned to remain open" despite the impacts of the COVID-19 pandemic.

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Economists at the University of Illinois on March 26 published an analysis illustrating how COVID-19 is reducing demand for transportation fuels, including ethanol. Meanwhile, several plants have announced they will idle or reduce production.

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President Trump signed the $2 trillion CARES Act into law on March 27. The bill is the third COVID-19 stimulus packaged signed into law. A fourth stimulus package is in the works that could provide more targeted relief for renewable fuel producers.

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