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Curtailing ethanol blending this year may have a moderate effect on near-term corn prices, while broader, long-term consequences loom. Observers think the EPA will ultimately set the RVO above 13 billion gallons. How far above 13 no one knows.
The ethanol industry has made a compelling case to help the EPA come to its senses. We'll see a final RFS rule for 2014 very soon, and we'll determine what steps are necessary to preserve it for consumer choice once the agency's decision is final.
The DGTC board of directors has now asked me to serve as the next CEO and executive director. It is an honor to carry on this long-standing legacy. Yes, much work has been done over the past several decades, but much more work must be done.
The U.K. Department of Energy and Climate Change has published updated statistics on its renewable transport fuel obligation for the full 2012-'13 compliance year and a portion of the current compliance year, which ends on April 14.
Corn's value has retreated, but the costs of fertilizer, seed, land and machinery remain high. Have inflated expenses reset the break even point for American growers?
Big Oil knows its arguments are falling flat, and is now trying to change the topic, misleading consumers by making false claims such as ethanol causes engine failure in extreme cold weather and implying that 'misfueling' is a major consumer risk.
We can beat Big Oil, but as we move ahead, part of the go-forward strategy, even at this late date, has to be to a stronger emphasis on selling the merits of ethanol to the public. If we are going to win the war, we need more than just farmers.
The total U.S. corn supply is pegged at 14.781 billion bushels and demand at 13.150 billion bushels, creating ending stocks of 1.631 billion. The 12.4 percent carryout-to-use ratio is a very comfortable level that will limit upside movement in corn.
Natural gas prices have pushed up above $4.50 for the prompt NYMEX contract. That will be sufficient to limit natural gas consumption for power generation, but the demand reduction from fuel switching may also not be enough to rebuild inventories.
The days of distillers grains being 140 percent the value of corn are behind us, at least near-term. With the Chinese New Year upon us, it is not clear how quickly we will get a resolution on China's intentions. Whatever happens will impact 2014.
The biggest factor in ethanol markets will be projections of corn planting and building strength in the economy. Any economic strength seen through the first quarter is expected to result in increased gasoline demand, sparking higher ethanol usage.
The U.S. Energy Information Administration has revised its forecast for 2014 ethanol production in its February Short-Term Energy Outlook. The EIA now predicts the U.S. ethanol industry will produce an average of 908,000 barrels per day this year.
According to a new report from Navigant Research, global demand for biofuels for road transportation will grow from 32.4 billion gallons in 2013 to 51.1 billion by 2022. The report analyzes the emerging markets and future opportunities for biofuels.
The passage of the Farm Bill will positively impact the biomass industry and help to spur on additional development of renewable energy, according to several leading biomass companies and organizations that praised the long-awaited bill.
President Obama signed the 2014 Farm Bill into law during a Feb. 7 ceremony at Michigan State University. During his speech, Obama also announced the launch of a new "Made in Rural America" export and investment initiative.
Green Plains Renewable Energy Inc. reported its best quarter ever in its fourth quarter earnings report, producing a record 209.6 million gallons of ethanol and hitting 100 percent of its daily average capacity.
According to new government data, U.S. ethanol exports totaled 621.5 million gallons in 2013, the third-highest annual total on record, while exports of distillers grains set a new record of 9.7 million metric tons.
The European Renewable Ethanol Association (ePURE) has warned the European Commission of surging ethanol imports from Peru since the entering into force of the free trade agreement in August 2013, noting that Peru imports ethanol from the U.S.
Pine Lake Corn Processors LLC has extended its ethanol marketing agreement with Murex LLC. Under the agreement, Murex will purchase 100 percent of Pine Lake's production and market and move it to market.
Archer Daniels Midland Co. has reported fourth quarter 2013 adjusted earnings per share of 95 cents, up from 60 cents in the same period of 2012. The company indicated improved ethanol margins supported improved profits for its corn business.
The U.S. EPA has published renewable identification number (RIN) generation data for December and all of 2013, reporting that the biofuel industry generated nearly 16.62 billion RINs last year, including nearly 1 million cellulosic RINs.
The European Renewable Ethanol Association (ePURE) has filed a complaint with the European Commission's office of complaints with a view to stopping the circumvention of EU anti-dumping duties on fuel ethanol.
Cost advantage may be ethanol's real strong suit. We report this month that the implementation of E15, and the proliferation of E85 pumps and flex-fuel vehicles, hinges on ethanol's competitive price relative to gas.
The EPA's public comment period on its proposed 2014 renewable volume obligations (RVOs) ends tomorrow. It's not clear how long the EPA will take to digest industry feedback, nor is it clear what the agency will decide. Observers are optimistic.
Much of the consternation over corn ethanol, including the current debate on the renewable fuel standard, is rooted in America's ability to produce sufficient corn to meet the needs of food and fuel. This, of course, is dependent on weather.
ICM's Steve Vander Griend has immersed himself in understanding ethanol's performance, both as a fuel and in the tests used by regulatory agencies. As one of the biofuel's top technical agents, he's working hard to true up ethanol emissions testing.
The grains complex has been tiresome compared to the whirlwind proteins of late. A big carryout looms in corn, and demand from China has been in question.
Just as in the last 10 minutes of the U.S./Soviet 1980 Olympic hockey game where goalie Jim Craig blocked shot after shot, the ethanol industry will continue to deflect shots from Big Oil, Congress and the EPA in order to protect the RFS.
American Freedom Energy is the first retailer in Ohio to offer E15 to consumers for use in 2001 and newer vehicles. The expanded offering of E15 will create savings at the pump for consumers.
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