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CropEnergies supplies ethanol for use in disinfectants

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By Erin Krueger

March 25, 2020

Business Operations 

European ethanol producer CropEnergies has announced plans to alter its operations and partially shift production from fuel ethanol to neutral alcohol in order to help meet the need for disinfectants during the COVID-19 pandemic.

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The U.S. government on March 18 relaxed regulations to allow producers of fuel ethanol and beverage alcohol to shift production to ethanol-based hand sanitizers. Days later, several ethanol plants are taking action to help combat COVID-19.

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Last year's low margins impacted mergers and acquisitions in North America's ethanol industry, according to a report released by Ocean Park. Total North American ethanol capacity bought and sold during 2019 was the second lowest in five years.

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UNICA, the Brazilian sugarcane industry association, recently released ethanol production and sales data for February and has announced its members are donating alcohol for use in hand sanitizer to help contain the spread of COVID-19.

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The ethanol industry is struggling with demand destruction resulting from COVID-19, an oil price war, ongoing trade disputes, and SREs. “Folks, this is not going to be good, and our biggest concern by far is our people," said Al-Corn CEO Randy Doyal.

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Ethanol producers are being impacted by the pandemic, oil war, trade disputes and small refinery waivers. With prices reaching as low as 94 cents per gallon as of March 18, ethanol producers are bracing for difficult decisions and possible closures.

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Officials from Gevo Inc. discussed plans to produce renewable aviation fuel and upgrade the company's biorefinery in Luverne, Minnesota, to produce low carbon ethanol during a fourth quarter earnings call, held March 17.

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Mike Jerke, president and CEO of Southwest Iowa Renewable Energy, dicusses ways in which his company is working to help flatten the curve of the COVID-19 outbreak while protecting employees and ensuring plant operations can continue.

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Sen. Chuck Grassley, R-Iowa, fielded questions on COVID-19 and the biofuels industry during a media call held March 16. In his comments, Grassley said the industry is “very nervous.� He also addressed the Tenth Circuit Court ruling on SREs.

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A report from University of Illinois Extension shows weak demand for corn for ethanol use in the middle of the COVID-19 pandemic. Ethanol production will fall dramatically, it predicts, with gasoline consumption expected to be down about 20 percent.

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Aemestis Inc. released fourth quarter financial results on March 12, reporting increased revenues and progress with the development of its cellulosic ethanol and renewable natural gas (RNG) projects.

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Sen. John Hoeven, R-N.D., announced March 11 that Red Trail Energy will begin the drilling of a stratigraphic well, designed with the intent to be permitted as a Class VI injection well and used to sequester CO2 from the company's ethanol plant.

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The U.S. Energy Information Administration slightly increased its forecast for 2020 ethanol production in its latest Short-Term Energy Outlook, released March 11. The 2021 forecast, however, was unchanged.

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A new study releaesd March 11 finds despite challenges, Iowa biofuel production continues to have a significant impact on Iowa's economy, supporting over 48,000 jobs and more than $2.4 billion in household income.

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U.S. weekly ending stocks of fuel ethanol set a new record at 24.964 million barrels the week ending Feb. 28, breaking the previous record set only two weeks earlier, according to data released by the U.S. EIA on March 4.

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FROM THE MARCH ISSUE: Some ethanol plants are turning to alternative cleaning methods and naturally derived products that are more environmentally friendly than traditional chemicals.

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FROM THE MARCH ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about alternative cleaning methods, a study that highlights the befits of various fractionation techniques, developments in yeast strains, and more.

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A new study conducted by ABF Economics for the Minnesota Bio-Fuels Association has determined Minnesota's ethanol industry contributed approximately $2.31 billion to the state's gross domestic product (GDP) last year.

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FROM THE MARCH ISSUE: Partnered expertise helps yeast developers keep up with evolution in the ethanol industry.

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Novozymes announced the launch of its next yeast technology, Innova Fit, on Feb. 10. The company said the non-GM yeast product eliminates production constraints caused by conventional and basic yeasts.

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Green Plains Inc. officials announces plans to transform into an ag tech-focused company that produces sustainable high-protein and novel feed ingredients in addition to biofuels during a fourth quarter earnings call held Feb. 11.

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The Andersons Inc. reported a profitable Q4 for its ethanol group during a Feb. 13 earnings call, but noted a difficult margin environment is expected to continue. The company also reported its Element plant is producing cellulosic ethanol.

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Business Briefs

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By Ethanol Producer Magazine

February 14, 2020

FROM THE MARCH ISSUE: New head of Syngenta's Enogen business, a major milestone for Badger State Ethanol, ACE appoints director of member and industry relations, Kemin welcomes new hires, and Aemetis receives grants.

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Located in Nicaragua, the operation includes 60,000 to 70,000 head of cattle, and uses U.S. corn rolled and mixed with mombasa, a tropical grass.

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The Nebraska Ethanol Board's third E15 Retailer Workshop is coming up Feb. 20 in Lincoln.

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The U.S. Grains Council is specifically targeting the aquaculture industry in Southeast Asia as one of the next big demand growth opportunities for U.S. dried distillers grains with solubles (DDGS).

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Cooperative Producers Inc. has added E15 at its fuel sites in Axtell, Nebraska, and Red Cloud, Nebraska. These additions are CPI's fifth and sixth locations selling E15 in the state including locations in Clay Center, Funk, Giltner, and Juniata.

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Panel discussions during the second day of the 2020 National Ethanol Conference in Houston, Texas, began by exploring new uses for ethanol.

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Ted McKinney, the U.S. Department of Agriculture's undersecretary for trade and foreign agricultural affairs, addressed the 2020 National Ethanol Conference Wednesday, offering kudos to the U.S. ethanol industry.

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The USDA increased its 2019-'20 forecast for corn use in ethanol production by 50 million bushels, to 5.425 billion, in its latest World Agricultural Supply & Demand Estimates report, released Feb. 11.

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