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Marginal Improvement

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By Matt Thompson

December 18, 2019

Feedstocks Business Operations Markets 

FROM THE JANUARY ISSUE: Margins at some plants have begun to rise, but they're still tight, and factors like crop condition and harvest progress will have an impact.

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FROM THE JANUARY ISSUE: Ethanol Producer Magazine talked to three experts about the past year, and what they see moving into 2020.

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Business Briefs

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By Ethanol Producer Magazine

December 13, 2019

FROM THE JANUARY ISSUE: The Andersons welcomes new board member, RFA awarded grants, Szabo's new Grain Council role, ACE's office and executive committee election.

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Red River Biorefinery, a 16.5 MMgy ethanol plant located in Grand Forks, North Dakota, is on track to begin operations in the beginning of 2020. The facility takes in sugar beet tailings and potato processing waste as feedstock.

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The U.S. Energy Information Administration lowered its forecast for 2019 ethanol production, but maintained its forecast for 2020 ethanol production in its latest Short-Term Energy Outlook, published Dec. 11.

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UNICA, the Brazilian sugarcane industry association, has announced that nearly three-fourths of the sugarcane processed during the first half of November went to ethanol production. The group also said corn ethanol production is up significantly.

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Rex American Resources Corp. officials reported improving crush spreads and said its ethanol operations are currently running at a profitable rate during a Dec. 4 earnings call. The company's NuGen plant, however, is being impacted by corn shortages.

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Bunge Ltd. and BP plc announced Dec. 2 they have completed the formation of BP Bunge Bioenergia, a 50:50 joint venture that combines the two companies' Brazilian bioenergy and sugarcane ethanol businesses.

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The USDA recently released its Grain Crushings and Co-Products Production report for November, reporting that corn use for fuel ethanol production fell to 407 million bushels in September, down from both September 2018 and August 2019.

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UNICA, the Brazilian sugarcane industry association, has announced that domestic sales of hydrous ethanol by mills in the south-central region of Brazil record set a new record in October, reaching 2.11 billion liters (557.4 million gallons).

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FROM THE DECEMBER ISSUE: Corn oil may be the smallest fraction of production by weight, but it's also the most valuable.

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FROM THE DECEMBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about improved corn oil yield, an update on ethanol exports to Mexico, and a recap of the first Global Ethanol Summit.

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Poet-DSM Advanced Biofuels LLC, a joint venture of Royal DSM and Poet LLC, announced Nov. 19 it will pause production of cellulosic ethanol at Project Liberty and shift to R&D focused on improving operational efficiency.

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Construction of the first commercial-scale D3MAX plant at Ace Ethanol in Stanley, Wisconsin, is nearly complete. The corn fiber-to-ethanol facility is expected to begin startup in December and ramp up to full production capacity in early 2020.

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Biofuel producers make gains in efficiency, productivity

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By Argonne National Laboratory

November 14, 2019

The nation's biofuel producers have made significant gains in both energy efficiency and water conservation in recent years, according to a report released by the U.S Department of Energy's Argonne National Laboratory.

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Aemetis Inc. released third quarter financial results on Nov. 14, reporting progress with efforts to lower the carbon score of its corn ethanol plant and develop renewable natural gas (RNG) and cellulosic ethanol projects.

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Gevo Inc. released third quarter financial results on Nov. 12, highlighting plans to sell low-carbon ethanol into the California market, develop a 1 MMgy hydrocarbon plant and implement RNG and wind energy at its existing biorefinery in Minnesota.

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The U.S. EIA has maintained its 2019 and 2020 ethanol production forecasts its latest Short-Term Energy Outlook, published Nov. 13. The agency currently predicts ethanol production will average 1.03 million barrels per day in both 2019 and 2020.

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During Pacific Ethanol's third quarter earnings call Nov. 8, CEO Neil Koehler told investors that the ethanol industry experienced one of its worst production markets. Conditions, however, have begun to improve, he said.

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Green Plains Inc. has reported a third quarter net loss of $39 million due to the low margin environment. The company, however, said ethanol margins are showing improvement and efforts to improve plant operations are continuing.

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Biomass Magazine announced this week the agenda for the 13th annual International Biomass Conference & Expo taking place February 3-5, 2020 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.

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The Andersons Inc. has reported its ethanol group was profitable in the third quarter despite a challenging margin environment. The company also announced its Element biorefinery in Kansas began operating in August.

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UNICA, the Brazilian sugarcane industry association, recently announced ethanol production for the current season is up nearly 6 percent when compared to last year. Domestic sales of hydrous ethanol are up more than 15 percent.

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European ethanol producer CropEnergies AG recently announced it achieved revenues of €245 million ($272.03 million) for the fiscal second quarter of 2019-“20, the three months ended Aug. 31, setting a new quarterly record for the company.

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Valero Energy Corp. released third quarter financial results on Oct. 24, reporting a loss for its ethanol segment, but a profitable quarter for renewable diesel. The company also discussed plans to develop new renewable diesel production capacity.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol production was up significantly during the second half of September. A new record was also set for the volume of ethanol produced per ton of processed raw material.

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FROM THE NOVEMBER ISSUE: A practical guide for plant managers on recognizing strong lab data, and what to do when the results are unexpected.

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FROM THE NOVEMBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about analyzing lab data, an update on LBDS' Alcohol School, and a new corn hybrid for the ethanol industry.

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FROM THE NOVEMBER ISSUE: The Alcohol School brings fuel and beverage producers together to learn and share solutions.

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The Biodiesel Production Technology Summit will take place in Minneapolis June 15-17, 2020. Organized by BBI International and produced by Biodiesel Magazine, the event is a new forum for biomass-based diesel producers. Abstracts are being accepted.

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