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UNICA joins Global Renewable Fuels Alliance

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By Global Renewable Fuels Alliance

July 14, 2015

Feedstocks Policy Business Operations Markets Coproducts 

On July 13, the Global Renewable Fuels Alliance welcomed UNICA, the Brazilian Sugarcane Industry Association, as its newest member. UNICA is the largest organization in Brazil representing sugar, ethanol and bioelectricity producers.

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The Agricultural and Fisheries Council of the European Union has officially adopted the new rules to address indirect land use change (ILUC) impacts associated with biofuels. The directive was accepted by the European Parliament in late April.

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The Auto Channel has launched the Ethanol Chronicles. A long-time champion for ethanol, copublisher Marc Rauch describes the blog as "lively, spirited and sometimes humorous repartee concerning energy issues."

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Farmer leaders and staff members from the U.S. Grains Council, the National Corn Growers Association and the North Dakota Barley Council traveled to Cuba in late June to see first-hand potential opportunities for expanding U.S. coarse grain exports.

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The most recent government data shows ethanol exports hit the lowest level so far this year while distillers grains exports to China set a new record, accounting for 74 percent of total U.S. DDGS exports, according to a RFA analysis.

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In late June, the U.S. Department of Energy released a request for information (RFI) seeking stakeholder input on several topics related to the use of biofuel blends in small engines. Responses are due Aug. 30.

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Global ethanol supply and demand is set to be an area of focus on Monday morning during the U.S. Grains Council's 55th Annual Board of Delegates Meeting set to be held in Montreal from July 27 to 29, 2015.

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The U.S. Energy Information Administration has issued the July edition of its Short-Term Energy Outlook, predicting ethanol production, which averaged 935,000 barrels per day last year, will remain near current levels in 2015 and 2016.

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The Food and Agricultural Organization of the United Nations has published a new agricultural outlook predicting that ethanol and biodiesel use will continue to grow over the next decade, although at a slower pace.

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The market has been under pressure as the major corn growing region got planted early and has received beneficial moisture. This had slowed producer movement and encouraged managed money to garner a short position in corn.

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The demand from China, which had been keeping DDGS prices well above the levels that worked into U.S. rations, has dropped off. Prices are down and, since last month, it is being more widely considered for inclusion by U.S. feeders.

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The middle of summer brings an uncomfortable silence in the energy and ethanol markets as we are past the early summer driving surge, but still not quite sure about expectations for the rest of the year.

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Commodities: Lower natural gas production may impact prices

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By Ben Straus, U.S. Energy Services

June 30, 2015

Natural gas production growth in 2014 was spectacular. While 2015 was expected to be muted on the growth front, substantial declines in domestic dry gas production were not anticipated. June data has challenged this forecast.

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Clean fuel standards under development in Oregon and Washington have been under attack by their respective state legislatures in recent weeks. While the threat against the Oregon program has passed, the Washington program could still be eliminated.

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Station owners who offer ethanol blends above 10 percent are gaining increased sales and higher customer counts, contrary to assumptions made by the U.S. EPA in its recent proposal for the renewable fuel standard (RFS).

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UNICA, the Brazilian sugarcane association, has announced mills in the country's south-central region produced 1.66 billion liters (438.53 million gallons) of ethanol during the first half of June, including 1.02 billion liters of hydrous ethanol.

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Were the record profits in the ethanol industry during the past couple of years a temporary blip? Or are they reflecting a new normal, driven by a robust ethanol export market? “The answer appears to be some of both,� writes Scott Irwin.

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On June 25, the U.S. EPA held a hearing to address its proposed rule for the 2014, 2015 and 2016 renewable fuels standard (RFS) in Kansas City, Kansas. More than 250 people were scheduled to testify at the event.

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Ergon BioFuels LLC has announced its ethanol plant in Vicksburg is back to full operation following a brief suspension in services to facilitate renovations and upgrades. The plant began operations in 2007 and was purchased by Ergon in late 2013.

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A misconception following ethanol is that it causes compatibility issues in certain engines. But new data shows that the opposite is true, and ethanol-free gasoline blends actually increase much of the wear and tear on hoses, seals, and fuel tanks.

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The U.S. EPA has posted a notice to its website providing call-in information for the June 25 hearing scheduled to address the agency's proposed rule for the 2014, 2015 and 2016 renewable fuel standard (RFS).

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UNICA, the Brazilian sugarcane association, has announced the country has made changes to its tax policy on imported ethanol. A decree signed by Brazil's president June 22 creates tax parity between domestic and imported products, including ethanol.

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The ethanol industry is often portrayed as greedy and evil, out to push its fuel on consumers no matter the consequences. What's the reality? The oil industry is fighting hard, and fighting dirty, to keep control of the fuel marketplace at any cost.

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A company based in Lund, Sweden, recently received a welcome notification from the U.S. EPA, indicating the company's 90-day Microbial Commercial Activity Notice review has been completed without objections.

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Syngenta announced today that it will donate approximately $600,000 to the Prime the Pump Fund. Prime the Pump is an ethanol industry initiative created to help retailers cover the cost to install fueling infrastructure.

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Gevo received has an endorsement for the use of its renewable isobutanol by the marine industry from the National Marine Manufacturers Association.

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ePURE, the European renewable ethanol association, has released its annual 2015 State of the Industry Report, which illustrates that although the industry has faced a difficult year, there are reasons to be optimistic the situation will improve.

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On June 17, Fuels America hosted a press call during which farmers and representatives of the biofuel industry discussed how legislative changes to the renewable fuel standard would threaten America's security, consumers, climate and rural economy.

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The entire Iowa delegation, led by Rep. David Young, R-Iowa, on June 15 pressed the U.S. EPA to host a public hearing in Iowa on the proposed renewable fuel standard (RFS) renewable volume obligations (RVOs).

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The government of Queensland, Australia, has announced plans to implement a 2 percent ethanol mandate, beginning in July 2016. A similar mandate is planned for biodiesel, however an exact percentage has not been proposed.

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