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Corn use for fuel ethanol at 416 million bushels in January

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By Erin Voegele

March 30, 2021

Feedstocks Business Operations Coproducts 

The USDA recently released its Grain Crushings and Co-Products production report for March, reporting that corn use for fuel ethanol production in January 2021 was down when compared to both the previous month and January 2020.

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Rex American Resources released fourth quarter results on March 25, reporting that the company's ethanol operations are currently profitable. Rex officials also discussed the potential for CCS and said the company continues to consider acquisitions.

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Gevo Inc. on March 17 released fourth quarter financial results, discussing plans for its net-zero biorefinery projects and confirming that its existing ethanol plant in Luverne, Minnesota, continues to be idle.

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The Iowa Economic Development Authority on March 19 announced it has awarded tax benefits through the High Quality Jobs program to Verbio Nevada to support a project that aims to integrate ethanol production at the RNG production facility.

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Braskem is expanding its production capacity of green ethylene, the main feedstock derived from sugarcane ethanol which is used in the production of renewable resins. These materials can therefore claim to capture CO2, a greenhouse gas.

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Valero Energy Corp. and BlackRock Global Energy & Power Infrastructure Fund III announced on March 16 that they are partnering with Navigator Energy Services to develop an industrial scale carbon capture pipeline system (CCS).

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The U.S. Senate on March 17 voted unanimously to confirm the nomination of Katherine Tai as U.S. trade representative. The Office of the U.S. Trade Representative leads international trade negotiations and oversees the resolution of disputes.

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Sens. Chris Coons, D-Del., and Bill Cassidy, R-La., and Reps. Marc Veasey, D-Texas, and David McKinley, R-W.V., on March 17 introduced the Storing CO2 and Lowering Emissions (SCALE) Act, a comprehensive CO2 infrastructure package.

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Previewing the April issue of Ethanol Producer Magazine, Editor Lisa Gibson reflects on the industry's quest for higher levels of sustainability and lower carbon emissions through water management and carbon capture and storage, respectively.

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The USDA on March 15 announced it is opening a 45-day public comment period to gather input on its climate-smart agriculture and forestry strategy, including several topics focused specifically on biofuels, bioproducts and renewable energy.

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Eric McAfee, CEO of Aemetis Inc., confirmed that the company's California ethanol plant is currently running at capacity during a fourth quarter earnings call held March 11. He also provided an update of the company's advanced biofuel initiatives.

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Alto Ingredients Inc., formerly known as Pacific Ethanol Inc., announced on March 11 plans to sell its two idle ethanol plants located in California as part of its effort to focus on the production of specialty alcohols and essential ingredients.

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The U.S. exported 164.63 million gallons of ethanol and 916,541 metric tons of distillers grains in January, according to data released by the USDA Foreign Agricultural Service on March 5. Exports of both products were up from the previous month.

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Thanks to the U.S. Grain's Council's work promoting the benefits of DDGS to Irish swine, producers in the country have upped their inclusion of U.S. DDGS significantly, opening a market worth tens of millions annually.

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Sens. Debbie Stabenow, D-Mich., and Joe Manchin, D-W.V., on March 1 introduced the American Jobs in Energy Manufacturing Act of 2021, which aims to incentivize domestic manufacturing of advanced energy technologies.

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Nebraska Attorney General Doug Peterson on March 1 filed a complaint in the District Court of Saunders County alleging multiple environmental violations by AltEn LLC, a 25 MMgy ethanol plant located in Mead, Nebraska.

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Gevo Inc. in late February announced it has signed a memorandum of understanding (MOU) to develop a renewable hydrocarbon plant in Germany and has amended an agreement with a European airline for an increased off-take of sustainable aviation fuel.

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The Carbon Capture Coalition on Feb. 24 released a national policy blueprint that includes near-term recommendations the group says policymakers should adopt in order to accelerate the deployment and commercialization of carbon capture projects.

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Glacial Lakes Energy has announced its four biorefineries participate in the carbon capture and storage (CCS) project being developed by Summit Carbon Solutions. The project with sequester carbon dioxide underground in North Dakota.

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Green Plains Inc. announced that development efforts between Green Plains, Fluid Quip Technologies and other innovation partners have led to the production of 58 percent sustainable Ultra-High Protein at Green Plains' Shenandoah, Iowa biorefinery.

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The USDA recently released its Grain Crushings and Co-Products Production report for February, reporting that corn use for fuel ethanol was at 430 million bushels in December, down from both the previous month and December 2019.

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Using ATP program funds, the U.S. Grains Council sponsored participation at the Global Ethanol Summit of ethanol buyers from nearly two dozen Middle Eastern, European and African countries, who subsequently purchased $245 million in U.S. ethanol.

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Tom Vilsack is once again leading the USDA. The Senate on Feb. 23 voted 92 to seven to confirm him as secretary of agriculture. Vilsack, a former two-term governor of Iowa, served as ag secretary during all eight years of the Obama administration.

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Summit Agricultural Group and Green Plains Inc. on Feb. 18 announced the launch of a large-scale carbon capture and storage (CCS) project in the Midwest that will lower the carbon footprint of biorefineries and other carbon dioxide emissions sources.

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Reps. David McKinley, R-W.V., and Marc Veasey, D-Texas, on Feb. 16 reintroduced the ACCESS 45Q Act. The bill extends the date for projects to begin construction to claim the 45Q tax credit by 10 years and provides a direct pay elective.

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The Andersons Inc.'s ethanol group performed well during the fourth quarter of 2020, said President and CEO Pat Bowe during the company's fourth quarter earnings call on Feb. 17. The first quarter of 2021, however, has seen falling margins.

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Just as ethanol has played an essential role in addressing the COVID-19 pandemic, the low-carbon fuel will also serve as essential energy for combatting climate change, RFA President and CEO Geoff Cooper said Feb. 16 at the 26th annual NEC.

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Even after experiencing a drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released by RFA.

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USDA Rural Development has announced it is now accepting applications for renewable energy systems and energy efficiency improvements through the Rural Energy for America Program. Applications must be submitted by March 31.

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New rollouts in clean-in-place processes are easing burdens on ethanol plants, but proper care to analyze the downstream impacts of these practices are crucial. Producers should be particularly mindful of protecting the integrity of their coproducts.

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