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U.S. ethanol plant capacity increases for third consecutive year

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By U.S. Energy Information Administration

August 11, 2016

Business Operations 

Fuel ethanol production capacity in the United States was nearly 15 billion gallons per year, or 973,000 barrels per day (b/d), at the beginning of 2016, according to EIA's most recent U.S. Fuel Ethanol Plant Production Capacity report.

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Southwest Iowa Renewable Energy LLC has reported financial results for its third fiscal quarter, the three months ended June 30, reporting a net loss of $300,000 million, or a loss of $20.48 per basic unit.

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Gevo Inc. recently released its quarter two financial results, providing an update on Luverne's operational status and progress, efforts in the jet fuel and specialty fuels markets, as well as its partnership with Clariant Corp.

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On Aug. 5, a lightning strike caused a fire at a feedstock storage area a few miles from DuPont's cellulosic ethanol plant in Nevada, Iowa. An estimated 10,000 bales of corn stover were lost, but the facility itself was unaffected.

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The American Coalition for Ethanol used its well-attended annual gathering as a platform to launch a reinvigorated campaign for the industry to make its case for ethanol as a clean source for vitally important octane.

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The Andersons Inc. Ethanol Group was profitable in the second quarter of 2016. Steady exports, seasonal driving demand, lower corn prices and stronger demand for sales of E10 ethanol boosted margins, company officials said.

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The Renewable Fuels Association member company Al-Corn Clean Fuel held a celebration Aug. 2 to mark its 20th anniversary in operation. The farmer-owned ethanol production cooperative was founded in 1994 and began production in 1996.

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Seven parties have expressed interest in Archer Daniels Midland Co.'s dry mill ethanol assets, and bids are expected by the end of August, Chairman and CEO Juan Luciano said in the company's second quarter investor call.

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Green Plains Inc. produced a record 274.3 million gallons of ethanol in the second quarter, realizing a net income of $8.2 million, or 21 cents per diluted share. Revenues in Q2 2016 were $887.7 million.

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On July 27 in Omaha, Nebraska, the Renewable Fuels Association kicked off the first of four training sessions designed to help ethanol and distillers grains producers comply with impending Food Safety Modernization Act requirements.

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The U.S. EPA has released renewable identification number (RIN) generation data for June, reporting that more than 1.7 billion RINs were generated during the month, bringing the total for the first half of the year to nearly 9.21 billion.

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Valero's ethanol division reported $69 million of operating income in the second quarter of 2016, $39 million less than the second quarter of 2015, but up $60 million when compared to the first quarter of this year.

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In late June, the U.S. EPA approved efficient producer pathways for six Poet ethanol plants, bringing the total number of plants to receive pathways approvals under the efficient producer program to approximately 60.

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A report recently filed with the USDA Foreign Agriculture Service's Global Agricultural Information Network provides an overview of the European Union's biofuel market, including data on ethanol.

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The U.S. ethanol industry set a new weekly ethanol production record the week ending July 15, with production reaching an average of 1.029 million barrels per day, according to information published by the U.S. Energy Information Administration.

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Construction is under way on a $8.5 million expansion at Siouxland Ethanol in Jackson, Nebraska. Construction to add two fermenters to the ethanol plant in northeast Nebraska began July 18. Capacity is also being added to the plant's cooling towers.

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Total production of bioethanol in Poland is estimated at 200,000 metric tons with capacity at 511,000 metric tons, according to a report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network.

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The U.S. Energy Information Administration has released the July edition of its Short-Term Energy Outlook, predicting ethanol production will average 980,000 barrels per day in 2016 and 2017, up from nearly 970,000 barrels per day last year.

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Xylogenics Inc. launches fermentation modeling services to provide big data analytics for ethanol plants, incorporating historical data with customized modeling to maximize efficiency or conduct new technology assessments.

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With nearly a fifth of the U.S. biodiesel feedstock market share, corn oil from the ethanol production process is contributing more glycerin to the marketplace. But if that oil is not kosher, the market opportunities for its glycerin are limited.

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The National Biodiesel Board's Vice President of Federal Affairs Anne Steckel participated in a panel with other biofuel industry leaders at the 32nd Annual International FEW and colocated National Advanced Biofuels Conference in Milwaukee June 21.

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On June 22, the House Energy and Commerce Committee's Energy and Power Subcommittee held a hearing on the renewable fuel standard (RFS). The event featured testimony from government officials, biofuel supporters and other stakeholders.

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The 2016 National Advanced Biofuels Conference & Expo took place in Milwaukee, Wisconsin, this week, hosting a number of panels surrounding the advanced biofuels and biobased chemical industries.

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The U.S. EPA recently approved an efficient producer fuel pathway for Heartland Corn Products' 104 MMgy ethanol plant in Winthrop, Minnesota. The facility is the 54th facility to achieve an efficient producer pathway approval.

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BBI International has awarded the 2016 Kathy Bryan Memorial Scholarship to Donald Jackson and Patrick Thimes. The two $2,000 memorial scholarships are awarded annually to students pursuing degrees that may lead to a career in the ethanol industry.

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Tom Buis, co-chair of Growth Energy, and Charles Abbas, director of yeast and renewables research at Archer Daniels Midland Co., were honored at the International Fuel Ethanol Workshop with the High Octane award and Award of Excellence, respectively.

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It's up to everyone in the ethanol industry to herald the many environmental, social and health benefits of the product they produce, said Emily Skor, Growth Energy's new CEO, during her keynote address at the Fuel Ethanol Workshop & Expo.

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The U.S. EPA has published renewable identification number (RIN) data for May, reporting nearly 1.62 billion RINs were generated during the month, bringing the net total for the first five months of the year to 6.76 billion.

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New levels in maintenance planning, new solutions for cleaning and cooling tower tips are discussed in the July issue of Ethanol Producer Magazine.

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