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USDA: Corn use for ethanol at 379 million bushels in June

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By Erin Krueger

August 28, 2020

Business Operations Coproducts 

The USDA recently released its Grain Crushings and Co-Products Production report for August, reporting that corn use for fuel ethanol production was at 379 million bushels in June, up from the previous month, but down from June 2019.

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The U.S. EPA has released renewable identification number (RIN) data for July, reporting that 1.62 billion RINs were generated during the month under the Renewable Fuel Standard, up from 1.51 billion RINs generated in June.

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Rex American Resources Inc. released second quarter financial results on Aug. 26, conforming that its majority owned ethanol plants in Gibson City, Illinois, and Marion, South Dakota, are operating and that ethanol margins have been improving.

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U.S. ethanol production and weekly ethanol ending stocks each increased by less than 1 percent the week ending Aug. 21, according to data released by the U.S. Energy Information Administration on Aug. 26.

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Iowa Gov. Kim Reynolds announced on Aug. 25 that the state is allocating approximately $100 million of federal CARES Act relief funds to seven ag programs to offset the impact of COVID-19. Approximately $22.5 million of that will support biofuels.

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Ideal growing conditions and optimal yields should provide a silver lining for the 2020-'21 corn crop following lower than expected planting numbers. It's still early, but as of late August, the crop appears to be in good to excellent shape.

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Aemetis Inc. has completed of construction of the first two dairy digesters and four mile pipeline for the production of RNG. The project will supply RNG to displace natural gas use at the Keyes ethanol plant and for use as a transportation fuel.

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ACE's 33rd annual conference is being held as a live virtual event on Sept. 16 and will feature a USDA official, fuel retailers and a market analyst. Attendees will have dual access the 2020 International Fuel Ethanol Workshop & Expo.

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U.S. ethanol production increased by nearly 1 percent the week ending Aug. 14, according to data released by the U.S. Energy Information Administration on Aug. 19. Weekly ending stocks of fuel ethanol were up nearly 3 percent.

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Eric McAfee, chairman and CEO of Aemetis, on Aug. 13 detailed upgrades the company is making to its Keyes, California, ethanol plant to enable the production of USP-grade alcohol. The plant's entire capacity could be transitioned to the product.

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Cutting Through the CMMS Clutter

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By Heather Wilkerson

August 12, 2020

Mapcon debunks the many myths surrounding computerized maintenance management systems. When considering whether to purchase a CMMS, it is important to differentiate fact from fiction. When the truth has been identified, the software search can begin.

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Mike Kandris, co-CEO of Pacific Ethanol Inc., announced on Aug. 12 that the company does not expect to reopen its idle fuel ethanol plants until it can better secure positive forward operating margins for the idle facilities.

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U.S. ethanol production fell by more than 1 percent, while weekly ending stocks of fuel ethanol fell by nearly 3 percent for the week ending Aug. 7, according to data released by the U.S. Energy Information Administration on Aug. 12.

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The U.S. Energy Information Administration slightly increased its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released Aug. 11. Forecasts for ethanol blending were also revised up.

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The RFA on Aug. 6 celebrated the 15th anniversary of the RFS by releasing a report detailing the success of the program and hosting a media call to discuss the program's achievements and current challenges faced by the ethanol industry.

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U.S. ethanol production fell by nearly 3 percent the week ending July 31, while weekly ending stocks of fuel ethanol increased slightly, according to data released by the U.S. Energy Information Administration on Aug. 5.

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BP on Aug. 4 announced a new strategy to transform from an international oil company focused on producing resources to an integrated energy company. As part of that goal, BP aims to become a net zero company by 2050.

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The Andersons Inc. on Aug. 4 reported a profitable second quarter for all four of its business groups, including the ethanol group. The company also announced changes to its business structure, including the combining of the ethanol and trade groups.

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The North Dakota Agricultural Products Utilization Commission has awarded Blue Flint $155,000 to research and conduct a feasibility study on the utilization of biomass as a fuel and power source for its 70 MMgy ethanol plant.

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Green Plains' efforts to transform its business are continuing as the company focuses on the production of high-protein ingredients and USP-grade alcohol. As part of that effort, Green Plains is supplying high-grade alcohol to the makers of Lysol.

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In response to COVID-19 , Didion has modified its ethanol production facility to meet a growing demand for high-quality industrial alcohol. The company will have the capacity to produce 50 MMgy of USP grade alcohol per year starting this fall.

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Poet has announced its commitment to scale up production of industrial and beverage-grade alcohol at its biorefineries in Leipsic, Ohio, and Alexandria, Indiana. Poet said the changes will help meet growing demand caused by COVID-19.

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A resolution introduced in the Nebraska Legislature on July 23 aims to determine what changes should be made to the state's statutory and regulatory policies in order to enhance and promote the biofuels industry in Nebraska.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol production and sales were down a respective 2 percent and 14 percent during the first half of July despite a 14 percent increase in the volume of sugarcane processed.

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Valero Energy Corp. released second quarter financial results on July 30, reporting that ethanol production volumes were down approximately 50 percent when compared to the same period of 2019. Renewable diesel sales volumes, however, were up.

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ADM confirmed on July 30 that two of its dry mill ethanol plants remain idle. The company is taking a data-driven approach to determining a restart date for those plants, and said a strategic review of ADM's ethanol business is ongoing.

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U.S. ethanol production was up approximately 5.5 percent the week ending July 24, while weekly ending stocks of fuel ethanol increased by about 2.4 percent, according to data released by the U.S. Energy Information Administration on July 29.

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The USDA recently released its Grain Crushings and Co-Products Production report for July, reporting that corn use for ethanol production was at 300 million bushels in May, up from the previous month, but down from May 2019.

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Pacific Ethanol Inc. is expanding its production capacity of USP grade high quality alcohol at its Pekin, Illinois, facility by 30 million gallons per year. The new capacity will be online in the fourth quarter of 2020.

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