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Oregon vote approves second phase of Clean Fuels Program

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By Erin Voegele

January 08, 2015

Policy Business Markets 

On Jan. 7, the Oregon Environmental Quality Commission voted 4-1 to approve rules for the second phase of the Oregon Clean Fuels Program, which requires a 10 percent reduction of greenhouse gases from transportation fuels over a 10-year period.

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Advanced biofuel capacity topped 800 million gallons in 2014, up from the previous year and almost double the capacity in 2011, according to the E2 Advance Biofuel Market Report 2014 released by Environmental Entrepreneurs (E2).

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DDGS priced well above corn

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By Sean Broderick, CHS

January 02, 2015

DDGS prices are, in some places, 120 to 130 percent above corn. Traders will keep an eye on how the domestic market reacts to the price run up, writes Sean Broderick of CHS Inc.

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Natural gas price trends encouraging for the consumer

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By Ben Straus, U.S. Energy Services

January 02, 2015

For the near term the natural gas market is on a trajectory to remain inexpensive compared to historical benchmarks. The upcoming year is looking encouraging for the consumer of natural gas but the assessment is not an unqualified positive.

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University of Illinois agriculture economists examine whether the recent low prices for corn, soybeans and wheat are signaling an end to the new era of higher average crop prices.

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Ethanol supplies are becoming much more manageable at the end of the year. This has lessened concern about gaining access to needed gallons and sparked aggressive price pressure in all ethanol markets.

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Corn market expected to hover around $4

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By Jason Sagebiel, FCStone

December 31, 2014

Choppy and volatile trades are expected leading up to the January USDA report, writes Jason Sagebiel. Traders expect corn prices to stay on either side of $4.

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Iowa ethanol production hits record at 3.9 B gallons in 2014

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By Iowa Renewable Fuels Association

December 29, 2014

Iowa's 43 ethanol plants produced a record 3.9 billion gallons, after no growth in the past three years. For the first time, a small amount came from cellulosic feedstocks.

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U.S. ethanol producers have steadily been ramping up production in recent weeks, setting new records. The most recent weekly data indicates the industry was operating at an annualized rate of more than 15.2 billion gallons per year.

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A story reflecting on Rick Tolman's 14 years with NCGA was the most-read news story at Ethanol Producer Magazine's website. Other articles with high numbers of views included information about Brazilian and U.S. ethanol production levels.

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FAS GAIN report highlights the current state of the biofuels industry. Canadian ethanol production to increase 1 percent in 2014, reaching 1.75 billion liters. U.S. imports of 2 billion liters needed to meet mandates.

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A Michigan ethanol plant has had success with its Yellow Hose program, blending E85 and supplying 33 area retailers, as well as sales at an on-site fuel pump. For 15 months the plant has held a $1 spread between E85 and gasoline.

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The sale of a 21 MMgy corn-ethanol plant closed on Dec. 23. Green Biologics Inc. plans to continue ethanol production until sometime in 2016, when it will transition to n-butanol and acetone.

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The staff at Ethanol Producer Magazine extends congratulations to two overseas ethanol production companies. One is an existing corn-ethanol plant and the other is a proposed cellulosic ethanol plant.

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Data recently released by the U.S. Energy Information Administration shows the U.S. ethanol industry started out the last month of the year with two record-setting weeks of production, with a new record set the week ending Dec. 12.

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As word came that Chinese officials have given verbal approval for the biotech corn trait MIR 162, trade and agriculture stakeholders gathered this week in Chicago for the U.S.-China Joint Commission on Trade and Commerce discussions.

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UNICA, the Brazilian sugarcane energy association, has announced ethanol production from the start of the current season through the end of November is up 3.54 percent when compared to last year. Exports, however, are down 55 percent.

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Growth Energy has responded to a report released by the Bipartisan Policy Center that describes several options for reforming the renewable fuel standard (RFS), noting it pushes some of same tired talking points Big Oil has relied on for years.

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The U.S. Grains Council recently led a delegation of industry leaders representing the USDA, Renewable Fuels Association, and Growth Energy to the Philippines to assess factors contributing to the large exports of U.S. ethanol to Southeast Asia.

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The government of Finland announced Dec.17 that it granted $36.8 million to help build a cellulosic ethanol plant. A separate project to produce biogasoline, biodiesel and smaller amounts of other renewable products was also granted funding.

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Nearly three years after construction was completed at a corn-ethanol plant in Dunafoldvar, Hungary, Pannonia Ethanol has signed a loan deal so it can expand its production capacity.

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Ottawa-based Iogen Corp. announced its first commercial-scale cellulosic ethanol plant is producing ethanol in Brazil. The first 200,000 liters (53,000 gallons) has been distributed by Brazilian ethanol producer Raizen to its network of gas stations.

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The U.K. Department for Transport has announced plans to award GBP 25 million ($39.37 million) to support the development of up to three advanced biofuel demonstration plants through a two-phase competition.

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In the last few weeks, the topic of flex-fuel vehicles and E85 prices has resonated with readers of my blog.

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Turkey is effectively no longer accepting imports of U.S. corn coproducts following the stepped-up enforcement of existing biosafety laws that restrict which genetically modified (GM) corn varieties may enter the country's grain supply.

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With oil prices dropping dramatically, the possible impact on ethanol profitability was examined by University of Illinois ag economists Scott Irwin and Darrel Good in a recent FarmDocDaily post.

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The fate of an ordinance that would require gas stations in Chicago to carry E15 is still unknown. Passed by the city council's finance committee on Monday, a vote by the full council was deferred Dec. 10 for at least a month.

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Supply and demand numbers for U.S. feed grains were mostly unchanged in the Dec. 10 World Agriculture Supply and Demand Estimates report, with a small increase in projected corn food, seed and industrial use reducing ending stocks slightly.

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The U.S. Energy Information Administration has released the December issue of its Short-Term Energy Outlook, reporting new records for average weekly and monthly ethanol production. The EIA also increased its 2015 production forecast.

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Leaders of Sustainable Biofuels, an industry coalition to promote advanced biofuels, met on Dec. 4 at the European Parliament. LSB, chaired by UPM's Marko Janhunen, is advocating for a strong EU-wide subtarget for advanced biofuels.

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