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Quality Unconcern

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By Susanne Retka Schill

July 14, 2020

Feedstocks Operations 

Ethanol producers have sustained adequate production yields in 2020, despite low-quality corn from last year's harvest. While experts aren't sure why problems haven't arisen, improved enzymes and yeasts have probably helped plants stay 'dialed in.'

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As the ethanol industry seeks normalcy after the shock wave of COVID-19, new notions about capital investment and risk are surfacing. Experts say what was historically a mediocre margin may be considered a good margin moving forward.

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In Stanley, Wisconsin, Ace Ethanol LLC is becoming a pacesetter in the corn fiber-to-ethanol race after installing D3MAX technology, which gives the plant a strong advantage, both with cellulosic RINs and, potentially, the low-carbon fuels market.

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Southwest Iowa Renewable Energy has had a marathon year, accommodating a presidential visit, managing change and showing poise in the face of a national crisis. A year after Trump's historic drop in, the plant keeps rising to new challenges.

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A new report released by CoBank predicts that the COVID-19 pandemic will cause the ethanol industry to rationalize excess capacity and further diversify as 2021 fuel demand is not expected to fully rebound to pre-COVID-19 levels.

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Electrostatics, used for decades in other industries, show promise in high-protein feed production at ethanol plants. The technology could be useful at a time when the industry faces unprecedented challenges and needs new sources of revenue.

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For the largest family-owned and operated grain bin manufacturer in the world, success is measured through customer and dealer satisfaction. That responsiveness, coupled with ingenuity, has earned the company a reputation for innovation and safety.

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UNICA, the Brazilian sugarcane industry association, has announced that ethanol sales by mills in the south-central region of the country were down during the first half of June. Corn ethanol production, however, continued to grow.

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European ethanol producer CropEnergies released first quarter financial results on July 8, reporting reduced revenues, EBITDA and net income. The company, however, said impacts from COVID-19 were less severe than initially expected.

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The U.S. Energy Information Administration increased its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released July 7. Forecasts for ethanol consumption were also revised up.

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Harvestone Group has added four plants owned by Glacial Lakes Energy to its marketing, logistics and trading platform. The four plants represent 360 MMgy of production capacity. Harvestone's platform now handles more than 850 MMgy of production.

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A new video from the Renewable Fuels Association and Kansas Corn provides a clear introduction to other important products that come from ethanol production, including distillers grains, distillers oil, and captured carbon dioxide.

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The U.S. EPA on June 27 posted a document to its guidance portal that explains how fuel ethanol plants that are producing hand sanitizer to help combat the COVID-19 pandemic can do so without invalidating an existing efficient producer pathway.

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U.S. ethanol production was up approximately 1 percent the week ending June 26, while weekly ending stocks of fuel ethanol fell by more than 4 percent, according to data released by the U.S. Energy Information Administration on July 1.

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Southwest Iowa Renewable Energy, an ethanol plant in Council Bluffs, Iowa, has donated 1,000 bottles of its proprietary SIREtizer hand sanitizer to the Renewable Fuels Association, for free distribution at upcoming events.

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Midwest AgEnergy Group, the parent company of Blue Flint, announced on June 25 the company has received a $3.4 million grant from the North Dakota Industrial Commission and is moving forward with a CO2 capture and storage project.

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Rex American Resources Corp. filed an 8-K with the U.S. Securities and Exchange Commission on June 29 announcing it has resumed production at its NuGen Energy facility, a 150 MMgy ethanol plant located in Marion, South Dakota.

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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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U.S. ethanol production was up more than 6 percent the week ending June 19, while ethanol stocks fell by nearly 2 percent, according to data released by the U.S. Energy Information Administration on June 24.

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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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The U.S. EPA has released renewable identification number (RIN) generation data for May, reporting that nearly 1.26 billion RINs were generated under the RFS during the month, down from 1.72 billion generated during the same month of 2019.

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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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Analysis conducted by the Nebraska Farm Bureau indicates the state's agricultural economy could face nearly $3.7 billion in losses from COVID-19, including a $1.303 billion loss for the Nebraska ethanol industry.

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U.S. ethanol production was up slightly the week ending June 12, while weekly ethanol ending stocks were down approximately 2 percent, according to data released by the U.S. Energy Information Administration on June 17.

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Although some ethanol plants idled during the COVID-19 crisis have begun to resume operations as stay-at-home orders are lifted and fuel demand increases, Flint Hills Resources has announced its plant in Georgia will be permanently shuttered.

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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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An Effective Alternative to CIP Caustic

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By Brian McCluskey

June 11, 2020

In a recent trial, numerous process objectives where met when bulk caustic was replaced with a single acid cleaner. The change lowered CIP costs, cut the need for bulk caustic and sulfuric acid, and improved the overall cleanliness of the facility.

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The Renewable Fuels Association on June 11 marked the one-year anniversary of President Trump's visit to Southwest Iowa Renewable Energy by calling on him to reject requests from oil state governors to waive 2020 RFS blending requirements.

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For ethanol producers, everyday business is now all but paperless. From mobile apps to cloud-based data storage, the smart plants of the future are here. Even in this challenging time, adoption of new technologies focused on efficiency carries on.

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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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