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RFA provides update on COVID-19 impacts

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By Erin Krueger

April 20, 2020

Policy Business Operations 

The RFA estimates half of U.S. ethanol production capacity is offline. During a conference call held April 20, representatives of the ethanol industry discussed the impact COVID-19 is having on biofuel producers and stressed the need for federal aid.

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Fluid Quip Technologies Maximum Stillage Co-Products MSC has begun operations at Green Plains' ethanol plant in Shenandoah, Iowa. The MSC protein separation system began operations producing 50 percent Still Pro 50 protein within 24 hours of startup.

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Granite Falls Energy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 17 announcing it's 62 MMgy ethanol plant in Granite Falls, Minnesota, will remain idle through the end of April.

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In response to the COVID-19 pandemic, researchers and production staff at Poet have been working around the clock to produce an all-natural ethanol-based sanitizer to tackle the severe local shortage.

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UNICA, the Brazilian sugarcane industry association, is asking the Brazilian government to take action to help prevent the nation's sugar and ethanol industry from collapsing due to impacts of the COVID-19 pandemic.

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U.S. fuel ethanol production fell 15 percent the week ending April 10 to an average of 570,000 barrels per day, the lowest level since the U.S. Energy Administration began reporting weekly ethanol production data in mid-2010.

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In response to the ongoing COVID-19 pandemic, Green Plains Inc. is donating additional industrial grade alcohol from its facility in York, Nebraska, for the production of hand sanitizer to the states of Nebraska and Iowa.

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Marquis Energy has announced it is now producing mass amounts of hand sanitizer in response to the COVID-19 pandemic. The company is also continuing produciton of fuel ethanol and dried distilelrs grains (DDGs).

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Lake Area Corn Processors LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 13 announcing the company plans to reduce ethanol production at its 90 MMgy corn ethanol plant in Wentworth, South Dakota.

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Valero announced on April 13 it has temporarily idled eight of its ethanol plants and is reducing production at its remaining six ethanol plants due to COVID-19. Valero's renewable diesel operations have been less impacted by the pandemic.

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Granite Falls Energy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 9 announcing it will extend the regularly scheduled annual shutdown of its 62 MMgy ethanol plant in Granite Falls, Minnesota, through at least April 17.

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More ethanol plants, including Big River Resoruces, Valero, Green Plains and KAPPA Ethanol, are helping combat the COVID-19 pandemic by aiding in the production of hand sanitizer and other disinfecting products.

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U.S. fuel ethanol production fell 20 percent the week ending April 3 to an average of 672,000 barrels per day, the lowest level since the U.S. Energy Information Administration began reporting weekly ethanol production data in mid-2010.

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Growth Energy issued a statement on April 7 discussing the continued economic hardship facing U.S. biofuel producers and farmers as ethanol plants are forced to idle due to market conditions caused by the COVID-19 pandemic.

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KAAPA Ethanol sent a letter to stakeholders on March 31 announcing the company is idling its ethanol plant in Ravenna, Nebraska, due to impacts from the COVID-19 pandemic. KAAPA plans to continue operations at its Minden, Nebraska, facilty.

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To participate in the RFS program and generate RINs, renewable fuel producers must meet the registration requirements in Title 40 CFR Part 80. With the EPA approval, Ace Ethanol can now produce ethanol from corn kernel fiber and generate D3 RINs.

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Two federal agencies relaxed regulations in March to allow producers of fuel ethanol help produce hand sanitizer to combat the ongoing COVID-19 outbreak. Several ethanol producers are already taking action help produce the much-needed product.

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The USDA on April 1 published a notice seeking comments on the most important agricultural innovation opportunities to be addressed in the near and long term. The comments will inform efforts related to the agency's Agricultural Innovaton Agenda.

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U.S. ethanol production fell by more than 16 percent the week ending March 27 to an average of 840,000 barrels per day, the lowest level since September 2013, according to data released by the U.S. Energy Information Administration on April 1.

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Weighty Corn LLC's first commercial implementation of its fiber separation process at Pannonia Bio Zrt's 130 MMgy fuel ethanol plant in Dunaföldvár, Hungary, has been deemed a success. The company hopes to implement the technology at other plants.

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Gevo Inc. has suspended production at its bioreifnery in Luverne, Minnesota, due to the impact COVID-19 has had on the economy and has terminated 30 employees. Gevo expects to continue engineering efforts related to a renewable hydrocarbon plant.

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The U.S. EPA recently released RIN generation data for February, reporting that nearly 1.54 billion RINs were generated under the Renewable Fuel Standard during the month, including more than 36.77 million cellulosic RINs.

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Hennepin, Illinois-based Marquis Energy sent a letter to its farmers and community members on March 27 announcing the company's ethanol plant is “economically and logistically positioned to remain open" despite the impacts of the COVID-19 pandemic.

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Economists at the University of Illinois on March 26 published an analysis illustrating how COVID-19 is reducing demand for transportation fuels, including ethanol. Meanwhile, several plants have announced they will idle or reduce production.

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FROM THE APRIL ISSUE: Researchers use new molecular biology tools to identify inhabitants of ethanol plant bacterial communities.

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FROM THE APRIL ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about bacteria research, cooling tower maintenance and cleaning, coverage of IRFA's January Renewable Fuels Summit, and more.

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Pacific Ethanol on March 27 said it is idling capacity in response to the unprecedented decline in gasoline and ethanol demand due to the impacts of COVID-19 and announced it is providing high-quality alcohol for the production of hand sanitizer.

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FROM THE APRIL ISSUE: Experts discuss different approaches to optimize cooling towers and limit summer production slowdowns.

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Rex American Resources released fiscal fourth quarter financial results on March 26. The company announced a potential carbon sequestration project under development at its One Earth Energy plant in Illinois and discussed the impact of COVID-19.

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The Andersons announced March 24 that it will idle its Element ethanol plant in Colwich, Kansas, for an extended maintenance and repair period and will take spring maintenance shutdowns at the four facilities owned by its joint venture with Marathon.

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