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Report: Ethanol, LCFS can help US meet net-zero goal

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By Erin Krueger

June 30, 2020

Policy Business Markets 

The House Select Committee on the Climate Crisis on June 30 unveiled a climate crisis action plan that aims to serve as a congressional roadmap to help the U.S. reach net-zero emissions by 2050. The plan shows ethanol can help meet that goal.

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Iowa Gov. Kim Reynolds on June 30 signed a bill that will extend Iowa's biofuel tax differentials for six years and announced her intention to use $7 million of Iowa's federal CARES Act funding to expand the Iowa's biofuel infrastructure program.

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Production and use of renewable ethanol from ePURE members delivered an average of more than 72 percent greenhouse gas (GHG) savings compared to fossil fuels in 2019, according new certified data released in June.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol production was down significantly during the final half of May, while ethanol sales were down nearly 30 percent when compared to the same period of 2019.

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Due to heavy container traffic between the United States and Asia, 2020 has been a rollercoaster for containerized shipping following the outbreak of COVID-19 in January. Containerized grain shipment, however, have started to recover.

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To help meet continuing high demand for hand sanitizer, ADM on June 23 announced it is significantly increasing production of industrial alcohol at its Clinton, Iowa, corn processing complex. The new capacity will be available on an on-demand basis.

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Japan has opened a public comment period on a proposal that aims to increase the GHG emission value for gasoline and expand the list of conditions under which an unfulfilled ethanol target can be carried into the following fiscal year.

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Excess production capacity and reduced demand will force the U.S. ethanol industry to transform its business model to create more value and improve its operational efficiency, according to a new report from CoBank's Knowledge Exchange.

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Several biofuel producers and trade groups are among the nearly 200 organizations that sent a letter to President Trump on June 16 calling on him to ensure the continued implementation of the U.S.-China Phase One Trade Agreement.

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As the COVID-19 pandemic continues, the U.S. Grains Council is working diligently to engage international stakeholders to convey the continued availability of U.S. ethanol. As travel restrictions ease, strategic in-country engagement will resume.

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A roundup of the articles in the June issue of Ethanol Producer Magazine, including stories on hand sanitizer; the future of E30; carbon capture and storage; the CO2 market, ethanol's digital transformation and an alternative to CIP caustics.

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Five railcars of U.S. gasoline pre-blended at an E10 rate arrived in Guadalajara in May 2020, a direct success of the USGC's collaboration with the Mexican Association of Service Station Providers to demonstrate the benefits of increased ethanol use.

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A 5-percent point reduction on import tariffs for ethanol is expected to create opportunities for increased ethanol trade with Vietnam. According to the U.S. Grain Council, the Vietnam government aims to achieve a 10 percent ethanol blend mandate.

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The hosts of Export Exchange have announced the planned 2020 event will be postponed until 2021 due to restrictions associated with the coronavirus. The event is now scheduled for Oct. 6-8, 2021, at the Loews Kansas City.

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As the U.S. ethanol industry reduced production this spring, a vital supply of commercial and industrial carbon dioxide dwindled. It must return soon or buyers will be compelled to seek product from alternative sources, which could drive up prices.

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The U.S. ethanol industry saw a shift during the pandemic, as many plants sold or donated ethanol to be used in hand sanitizer production. While the temporary market provided cash flow for some, helping the nation in a time of need motivated all.

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This spring, as the U.S. ethanol industry ratcheted back production by more than 45 percent, taking 8 billion gallons of capacity off line, it did anything but retreat from the COVID-19 crisis. It rose to the challenge, and stepped up to help.

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The Brazilian Development Bank (BNDES) on June 4 announced the launch of a credit program designed to help support the country's ethanol industry, which is being negatively impacted by falling fuel demand resulting from the COVID-19 pandemic.

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The U.S. Energy Information Administration slightly reduced its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released on June 9. Forecasts for ethanol consumption were also revised down.

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Missouri biofuel entities now eligible for $200,000 grant

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By Missouri Department of Agriculture

June 08, 2020

On June 4, the Missouri Agricultural and Small Business Development Authority announced the creation of the Biofuel Infrastructure Program to increase the availability of higher blends of ethanol and biodiesel in the Show-Me State.

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Iowa legislature reauthorizes biofuel tax differentials

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By Iowa Renewable Fuels Association

June 05, 2020

The Iowa legislature has reauthorized the Iowa biofuel tax differentials, helping boost biofuel demand and lower prices. the bill extends and modernizes fuel tax differentials for E15 and higher ethanol blends and B11 and higher biodiesel blends.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol sales fell by more than 20 percent during the first half of May. Corn ethanol production, however, is up significantly when compared to 2019.

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The U.S. exported 99.38 million gallons of ethanol and 765,635 tons of distillers grains in April, according to data released by the USDA Foreign Agricultural Service on June 4. Exports of both products were down.

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USGC: Indonesia removes ethanol ban

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By U.S. Grains Council

June 01, 2020

U.S. ethanol can now enter the Indonesian market by way of pre-blended fuel, following the recent removal of a ban on pre-blended product entering the country. This change creates a potential market of more than 200 million gallons.

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The U.S. Department of Commerce's International Trade Administration has announced the Renewable Energy and Energy Efficiency Advisory Committee will hold a virtual meeting via WebEX on June 4. The meeting will be the final of REEEAC's current term.

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The Oregon Department of Environmental Quality on May 18 announced it has submitted detailed information to Gov. Kate Brown on how it plans to carry out her March 10 executive order that set a new goal for greenhouse gas (GHG) reduction.

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Sens. Joni Ernst, R-Iowa, and Chuck Grassley, R-Iowa, sent a letter to the FDC on May 26 urging the agency to clarify its temporary policy for the manufacture of alcohol-based hand sanitizer products during the COVID-19 pandemic.

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Experts agree that achieving the EU Green Deal will require a massive increase in bioenergy, so it is important that we rely on renewable energy sources that are sustainable, preserving Europe's biodiversity and protecting its food security.

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UNICA, the Brazilian sugarcane industry association, recently released data showing ethanol sales by mills in the country's south-central region were down 29 percent in April. Sales in both domestic and export markets were down.

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U.S. ethanol production for the week ending May 15 was up nearly 8 percent while weekly ethanol ending stocks fell by more than 2 percent, according to data released on May 20 by the U.S. Energy Information Administration.

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