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More ethanol producers should sell directly to gas retailers

By Holly Jessen

January 19, 2015

Business Markets 

Ethanol producers that aren't selling E85 direct to area gas retailers should seriously think about it, according to producers with direct-sales programs in place.

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Trade missions set out to identify opportunities and constraints in ethanol export markets.

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2015 – The Year of E15

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By Tom Buis

January 16, 2015

E15 is available at more than 100 stations in 15 states and it's only a matter of time before E15 is offered in every state in the nation, writes Tom Buis of Growth Energy. The industry got to that point by working together.

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Sens. Dianne Feinstein, D-Calif., and Pat Toomey, R-Pa., have attached an amendment that would eliminate corn ethanol from the renewable fuel standard (RFS) to the Keystone bill that is currently before the U.S. Senate.

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The European Parliament has voted in support of a motion for resolution to reject the European Commission's proposal to implement Article 7a of the Fuel Quality Directive, but the vote did not gain the majority needed to block the proposal.

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Ethanol producers exporting product may want to look into the Interest Charge-Domestic International Sales Corp. export incentive, which could qualify them for a 20 percent lower tax rate, writes Donna Funk of K-Coe Isom.

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Gevo Inc. recently announced it has launched sales of renewable isobutanol to Brenntag Canada Inc. for distribution into the solvents, oil and gas, mining and specialty chemicals markets. The initial market entry is focused on Canada.

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Record global supplies and increased competition limit growth for U.S. corn exports in the short-term.

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The U.S. Energy Information Administration has released the January issue of its Short-Term Energy Outlook, which includes its first short-term prediction of 2016 ethanol production levels.

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A Minnesota ethanol producer is having success with its efforts to provide E85 directly to gas retailers, bringing low-priced E85 to Minnesota. On Jan. 12, one retail gas station was selling E85 for only 85 cents thanks to a price promotion program.

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A few weeks ago, a reader question sparked an interesting search for answers. That one comment has led to several stories and blogs at our website.

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Rep. Jim Sensenbrenner, R-Wis., has introduced a bill that aims to revoke current approval of E15 and require additional testing of midlevel ethanol blends. The Renewable Fuels Association criticized the bill, noting it would hinder E15 expansion.

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On Jan. 7, the Oregon Environmental Quality Commission voted 4-1 to approve rules for the second phase of the Oregon Clean Fuels Program, which requires a 10 percent reduction of greenhouse gases from transportation fuels over a 10-year period.

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Advanced biofuel capacity topped 800 million gallons in 2014, up from the previous year and almost double the capacity in 2011, according to the E2 Advance Biofuel Market Report 2014 released by Environmental Entrepreneurs (E2).

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DDGS priced well above corn

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By Sean Broderick, CHS

January 02, 2015

DDGS prices are, in some places, 120 to 130 percent above corn. Traders will keep an eye on how the domestic market reacts to the price run up, writes Sean Broderick of CHS Inc.

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Natural gas price trends encouraging for the consumer

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By Ben Straus, U.S. Energy Services

January 02, 2015

For the near term the natural gas market is on a trajectory to remain inexpensive compared to historical benchmarks. The upcoming year is looking encouraging for the consumer of natural gas but the assessment is not an unqualified positive.

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University of Illinois agriculture economists examine whether the recent low prices for corn, soybeans and wheat are signaling an end to the new era of higher average crop prices.

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Ethanol supplies are becoming much more manageable at the end of the year. This has lessened concern about gaining access to needed gallons and sparked aggressive price pressure in all ethanol markets.

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Corn market expected to hover around $4

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By Jason Sagebiel, FCStone

December 31, 2014

Choppy and volatile trades are expected leading up to the January USDA report, writes Jason Sagebiel. Traders expect corn prices to stay on either side of $4.

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Iowa ethanol production hits record at 3.9 B gallons in 2014

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By Iowa Renewable Fuels Association

December 29, 2014

Iowa's 43 ethanol plants produced a record 3.9 billion gallons, after no growth in the past three years. For the first time, a small amount came from cellulosic feedstocks.

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U.S. ethanol producers have steadily been ramping up production in recent weeks, setting new records. The most recent weekly data indicates the industry was operating at an annualized rate of more than 15.2 billion gallons per year.

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A story reflecting on Rick Tolman's 14 years with NCGA was the most-read news story at Ethanol Producer Magazine's website. Other articles with high numbers of views included information about Brazilian and U.S. ethanol production levels.

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FAS GAIN report highlights the current state of the biofuels industry. Canadian ethanol production to increase 1 percent in 2014, reaching 1.75 billion liters. U.S. imports of 2 billion liters needed to meet mandates.

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A Michigan ethanol plant has had success with its Yellow Hose program, blending E85 and supplying 33 area retailers, as well as sales at an on-site fuel pump. For 15 months the plant has held a $1 spread between E85 and gasoline.

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The sale of a 21 MMgy corn-ethanol plant closed on Dec. 23. Green Biologics Inc. plans to continue ethanol production until sometime in 2016, when it will transition to n-butanol and acetone.

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The staff at Ethanol Producer Magazine extends congratulations to two overseas ethanol production companies. One is an existing corn-ethanol plant and the other is a proposed cellulosic ethanol plant.

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Data recently released by the U.S. Energy Information Administration shows the U.S. ethanol industry started out the last month of the year with two record-setting weeks of production, with a new record set the week ending Dec. 12.

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As word came that Chinese officials have given verbal approval for the biotech corn trait MIR 162, trade and agriculture stakeholders gathered this week in Chicago for the U.S.-China Joint Commission on Trade and Commerce discussions.

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UNICA, the Brazilian sugarcane energy association, has announced ethanol production from the start of the current season through the end of November is up 3.54 percent when compared to last year. Exports, however, are down 55 percent.

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