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EIA data shows U.S. ethanol consumption continues to grow

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By Erin Krueger

April 01, 2014

Business Markets 

The U.S. Energy Information Administration has published the March edition of its Monthly Energy Review, which features final 2013 data for ethanol production, imports and consumption. The report shows ethanol consumption continue to grow last year.

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The Global Renewable Fuels Alliance, in cooperation with F.O. Licht, has released its Global Annual Ethanol Production Forecast, which predicts global fuel ethanol production to surpass 90 billion liters (23.78 billion gallons) in 2014.

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Produced by BBI International, the agenda for the 30th annual International Fuel Ethanol Workshop & Expo includes more than 140 speakers and four highly informative track sessions.

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Commodities: Cold winter, other factors boost natural gas prices

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By Ben Straus, U.S. Energy Services

March 28, 2014

Winter 2013-'14 may be on its last legs, but the experience is still fresh in the minds of many natural gas consumers across the upper Midwest. The coldest winter in the past ten years lifted spot prices to unheard-of levels in the shale era.

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March was a strong month for the corn market with May futures trading to the $5.02 level. With that price action the producer was actively rewarding the market allowing basis levels to relax.

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A look back at the last month of DDGS supply and demand can be summarized with one word: Logistics. Railroads encountered a myriad of shipment problems causing issues to the east and west.

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EurObserv'ER has released the 2013 edition of its annual renewable energy report, which determined that final energy consumption from renewable resources, including biofuels and biomass, increased significantly in 2012.

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Trade through the ethanol market seems to indicate additional aggressive buying still stepping in. Traders are focusing on supplies that seem to tighten week-after-week, even with production levels falling.

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LanzaTech has attracted new strategic investors. Led by Mitsui & Co. with a $20M investment, the $60M round includes new investors Siemens via its Venture Capital unit (SFS VC), CICC Growth Capital Fund I L.P., along with existing investors.

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The U.S. EPA has released renewable identification number (RIN) generation data for February, reporting that more than 1.21 billion RINs were generated during the month across all five fuel categories, including 7,072 D3 cellulosic biofuel RINs.

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Bloomberg New Energy Finance has published a new white paper that highlights the impacts of the renewable fuel standard (RFS), California Low Carbon Fuel Standard, and new fuel efficiency regulations on California's gasoline market.

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Anew Travel Center in Cambridge, Neb., now offers E15 to consumers for use in 2001 and newer vehicles. The expanded offering of E15 will create savings at the pump for consumers. The fuel blend is currently offered by retailers in 14 states.

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As of the end of last year, there are less than 3,000 E85 retail stations in the U.S. While that represents growth in the past five years, there's more work to be done so FFV drivers have easy access to the fuel.

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The U.S. Energy Information Administration has published the March edition of its Short-Term Energy Outlook, slightly increasing its 2014 ethanol forecast. The EIA now predicts ethanol production will average 910,000 barrels per day in 2014.

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N.C. Bioenergy Research Initiative seeks grant proposals

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By North Carolina Department of Agriculture and Consumer Services

March 14, 2014

The N.C. Bioenergy Research Initiative is seeking grant proposals focused on research and development of agricultural and forestry-based feedstocks for bioenergy production, Agriculture Commissioner Steve Troxler recently announced.

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CRIBE, GreenField partner to test demonstration technology

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By Centre for Research and Innovation in the Bio-Economy

March 13, 2014

The Centre for Research and Innovation in the Bio-Economy is partnering with GreenField Specialty Alcohols to test and develop a technology that could provide pulp mills with new revenue streams and increased efficiency.

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According to a new paper authored by two University of Missouri professors, rural regions are poised to benefit from the bioeconomy, which refers to the production of a wide range of goods and services from plant, animal and forest-based material.

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A new U.S. Energy Information Administration brief shows that the number of E85 retail fueling station has grown rapidly since 2007, with the most recent growth in states outside the Midwest, particularly California and New York.

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Legislation pending in the Minnesota Legislature aims to create a capital equipment loan program renewable chemicals and advanced biofuels, and production incentives for advanced biofuels, renewable chemicals and biomass thermal energy.

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In January, U.S. ethanol exports reached 86.2 million gallons, the highest monthly export total since December 2011, according to government data released last week. Brazil was the top customer for U.S. ethanol, bringing in 23.9 million gallons.

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The California Air Resources Board held public workshops on proposed updates to the state's Low Carbon Fuel Standard and revisions to the related issue of indirect land use change (ILUC) on March 11.

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About two years ago I wrote an interesting story about DDGS as a component of shrimp feed. Recently I decided to check back in with the researcher I interviewed, to see if there were any new developments.

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Still seeking commercial-scale opportunities, Lignol continues to collaborate with companies that are eager to buy high-purity lignin in bulk. Is this abundant byproduct of pulp and paper milling and biorefining poised for new and higher uses?

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Ethanol exports are a bright spot for producers in a year of uncertainty. Economists predict continued strength in foreign demand could lead to ethanol exports in the range of 600 million to 1 billion gallons.

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Given the solid legal arguments of the EPA's critics, the final RVO rule may prompt a judicial response that impacts the agency's discretion when setting volumes in the future. Iowa's attorney general has left the door open to that possibility.

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EU's Struggle for E10

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By Robert Vierhout

March 08, 2014

For European ethanol producers, E15 is still a distant dream. In the EU, the struggle is to get from E5 to E10. The legislation to offer E10 has been in place since 2009 but its use, even five years after the legislation came into force, is minimal.

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The ability for independent fuel marketers to sell renewable fuels at lower prices while improving profit margins by selling RINs, has given independent fuel marketers something they have never had before: an advantage over Big Oil.

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South Dakota plans to use E15 for state fleet FFVs

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By Office of Gov. Dennis Daugaard

March 07, 2014

South Dakota Gov. Dennis Daugaard announced today that the state will begin incorporating E15 fuel into its state vehicle fleet. The fuel will be made available at four sites during a test period.

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China's Ministry of Agriculture has officially certified the registration of more U.S. ethanol plants to export distiller's dried grains with solubles (DDGS) to China. The country is back on top as the top importer of U.S. DDGS.

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Growth Energy highlighted the fact that March 6 is the five-year anniversary of when the organization filed the Green Jobs Waiver with the U.S. EPA, seeking commercial-use approval for E15.

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