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UAI: Ethanol's carbon impact in the fuel tank

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By Urban Air Initiative

February 04, 2021

Policy Business Markets 

A new study commissioned by the Urban Air Initiative is underway to determine whether corn-based ethanol makes a larger contribution to the reduction of GHG emissions than it is currently receiving credit.

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Novozymes released fourth quarter financial results on Feb. 2, reporting that its bioenergy segment was negatively impacted by the COVID-19 pandemic in 2020. The reduction in bioenergy sales, however, improved in the fourth quarter.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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Secretary of agriculture nominee Tom Vilsack stressed the important role biofuels and bioenergy will play in meeting the Biden administration's climate goals during a Feb. 2 hearing before the Senate Committee on Agriculture, Nutrition and Forestry.

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A Peruvian tribunal announced on Jan. 29 that the U.S. ethanol industry and the U.S. government won an appeal on a countervailing duty case brought against U.S. ethanol in Peru, reversing 15-cent per gallon duty on U.S. ethanol.

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President Biden on Jan. 27 issued an executive order that aims to tackle the climate crisis, create jobs and restore scientific integrity across the federal government. The order addresses the production and sourcing of biobased products and fuels.

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During his state of the industry address at the 2021 Iowa Renewable Fuels Summit, Iowa Renewable Fuels Association Executive Director Monte Shaw characterizes the Iowa biofuels industry as “battered, but battling for a better future."

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ADM discussed the status of its ethanol operations during a Q4 earnings call held Jan. 26. While ethanol margins are low, the company expects the supply-demand balance to improve through increased exports to China and industry reconfiguration.

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Combating the myths that exist about the use of gasoline blended with 10-percent ethanol has been the primary goal of the partnership between Crappie Masters, the Renewable Fuels Association and the National Corn Growers Association.

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Ethanol joined wind, solar, ocean wave and biomass energy as topics of discussion during the Renewable Energy Exhibition in Japan in early December 2020. The U.S. Grains Council took part to provide an overview of ethanol's use around the world.

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BBI International has announced that the 2021 International Fuel Ethanol Workshop & Expo, the ethanol industry's largest conference, will be held July 13-15 in Minneapolis. The event was originally scheduled to be held in mid-June.

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IRFA: Iowa ethanol production down in 2020

By Iowa Renewable Fuels Association

January 21, 2021

Compared to 2019, Iowa ethanol production fell 500 million gallons, or 12 percent, in 2020 as a result of dramatic demand destruction resulting from the COVID-19 pandemic, trade disputes around the globe, and illegal exemptions granted from the RFS.

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Legislation introduced in New Mexico on Jan. 19 aims to establish a Clean Fuel Standard within the state. The bill is supported by New Mexico Gov. Lujan Grisham, the Low Carbon Fuels Coalition, and the Biotechnology Innovation Organization.

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European ethanol producer CropEnergies has released financial results for third quarter of its 2020-'21 financial year, reporting improved operating margins for the first nine months of the fiscal year. Sales volumes, however, were down.

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The ethanol sector continued to recover during the fourth quarter of 2020 with production levels up 3.5 percent when compared to the third quarter, according to a new quarterly report released by CoBank's Knowledge Exchange on Jan. 14.

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Ethanol-producing countries should not be those with the most restrictive barriers to market entry. They should be our partners in opening global markets, instead of shutting their own markets down. Equitable tariff treatment is critical.

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The U.S. EIA has released is Short-Term Energy Outlook for January, The EIA currently predicts ethanol production will average 1.02 million barrels per day next year, up from 980,000 barrels per day in 2021.

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In the past three years, fuel retailers across Nebraska have raised more than $18,000 for cancer research as part of “Fuel the Cure.� During October, when drivers chose higher blends of ethanol fuel, gas stations donated 3 cents per gallon.

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The U.S. exported 113.62 million gallons of ethanol in November and 927,604 metric tons of distillers grains according to data released by the USDA FAS on Jan. 7. Exports of both products were down when compared to the previous month.

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OPINION: USDA HBIIP 2020 year-end free money clearance!

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By Ron Lamberty, senior vice president, American Coalition for Ethanol

January 07, 2021

The USDA's Higher Blends Infrastructure and Incentive Program has some money left over, and the agency is offering fuel retailers a rare second chance to submit applications. The current application period is open through Jan. 19.

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ORNL: Co-Optima research develops roadmap for biofuels design

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By Oak Ridge National Laboratory

January 04, 2021

Researchers at Oak Ridge National Laboratory have been on a quest for the past few years to identify the most significant indicators for predicting how a fuel will perform in engines designed for light-duty vehicles.

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As the ongoing impacts of COVID-19 push air quality and climate issues to center stage, the U.S. Grains Council is continuing its work to demonstrate the environmental benefits of ethanol to global stakeholders.

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Capitalizing on successful virtual engagement with the Mennonite community in Southeast Mexico, the USGC recently began promotion of the nutritional and economical value of U.S. DDGS with Hutterite swine producers in western Canada.

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The Manitoba government on Dec. 22 announced that it will step up its ethanol and biodiesel blending requirements over the next two years, requiring E10 and B5 blends of gasoline and diesel by the start of 2022.

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45Q - The Drive to Qualify

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By Alex Tiller

December 22, 2020

The road to qualifying for the 45Q tax credit can be confusing, with strict limitations on project phases and what constitutes start of construction. But, navigated properly, the credit is a promising opportunity.

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CoBank on Dec. 17 issued a report on the year ahead, predicting the 2021 outlook for ethanol is stable but guarded, with considerable growth and margin opportunities favoring ethanol coproducts versus fuel.

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The government of Canada on Dec. 18 published proposed regulations for its Clean Fuel Standard. Final regulations are expected to be published next year, with the CFS scheduled to come into force on Dec. 1, 2022.

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U.S. ethanol exports to Brazil are once again subject to a 20 percent tariff after the two countries failed to reach a trade agreement during a short-term extension of Brazil's tariff-rate quota (TRQ) that expired in mid-December.

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A new analysis released by the RFA shows that U.S. ethanol producers had lost $3.8 billion as result of COVID-19 by the end of November. With new travel restrictions and the resulting loss of fuel demand, those losses will continue to grow.

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The U.S. Energy Information Administration slightly increased its forecast for 2021 fuel ethanol production in its latest Short-Term Energy Outlook, released Dec. 8. The forecast for 2020 ethanol production was maintained.

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