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Ethanol is Ready to Truly Get Off the Ground

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By Tom Bryan

November 16, 2022

Feedstocks Policy Business Markets Coproducts 

Ethanol Producer Magazine's editor previews the feature articles in the publication's December edition while reflecting on the rise of EVs, the promise of higher-level ethanol blends and the enormity of the industry's burgeoning SAF opportunity.

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RFA: EIA reports record-high ethanol blend rates

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By Renewable Fuels Association

November 16, 2022

A report released on Nov. 16 by the U.S. Energy Information Administration demonstrates clearly that higher blends of ethanol helped moderate fuel prices in the wake of the Ukraine invasion, according to the RFA.

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The Senate Ag Committee on Nov. 15 continued its work to develop the 2023 Farm Bill with a hearing focused on rural development and energy programs, including HBIIP, REAP, the BioPreferred Program, and 9003 loan guarantee program.

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Total ethanol production in Brazil is expected to be up nearly 9 percent this year, with fuel ethanol production up by nearly 8 precent, according to a report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network.

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In early October, U.S. Embassy Tokyo, the Office of the U.S. Trade Representative (USTR) and Japan's Ministry of Economy, Trade and Industry (METI) co-hosted a technical workshop on the economic and environmental benefits of U.S. corn ethanol.

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In an intentional commitment to support the global fight against climate change, the USGC, Renewable Industries Canada (RICanada), UNICA, UNEM (National Corn Ethanol Union) and ePURE have come together to underscore the importance of ethanol.

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Policy makers are incentivizing sustainable aviation fuel across the globe. Airlines are eagerly signing offtakes and taking every drop they can get. With other feedstocks in tight supply, ethanol-based SAF production is ready to soar.

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Alto Ingredients Inc. on Nov. 7 released third quarter financial results and announced it has entered into a $125 million senior secured term loan facility that will support efforts to complete strategic upgrades.

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The Renewable Fuels Association and Growth Energy are among the organizations that participated in a virtual roundtable with the U.S. Department of Treasury on Nov. 7 that focused on implementation of the Inflation Reduction Act.

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The Renewable Fuels Association and nearly 200 other organizations representing a broad swath of the agricultural value chain have urged Congress to act quickly to prevent a rail strike and service shutdown on Nov. 19.

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The Renewable Fuels Association has a simple message for COP27 delegates: Ethanol is a low-carbon renewable fuel available today to help meet climate goals—and it's well on its way to net-zero carbon emissions in the not-too-distant future.

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Shell has agreed to buy a total of 3.25 billion liters of sugar-cane cellulosic ethanol under a long-term agreement with Brazil's Raízen. The low-carbon fuel is expected to be produced by five plants that Raízen plans to build in Brazil.

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The U.S. exported 100.4 million gallons of ethanol and 877,745 metric tons of distillers grains in September, according to data released by the USDA Foreign Agricultural Service on Nov. 3. Exports of both products were up from September 2021.

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Shoring up its provisions on biointermediates, the EPA is catching up with new and envisioned biofuel production goals. Following a workshop on the topic, Ethanol Producer Magazine spoke with a policy expert to learn more.

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While E15 use continued uninterrupted in the summer of 2022, a policy or regulatory vehicle to make its year-round availability permanent is still needed. The Renewable Fuels Association and its allies are working on multiple paths forward.

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As the shrimp sector in Ecuador continues to grow, the U.S. Grains Council is finding ways to include DDGS in nutrition conversations. Recently, the organization participated in the AquaExpo Congress in Guayaquil, Ecuador.

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UNICA, the Brazilian sugarcane industry association, has announced sugarcane processing by mills in the south-central region of the country was up significantly during the first half of October. Ethanol production and sales were also up.

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The Drive Clean Initiative and Next Generation Fuels Act are simultaneously finding support in the ethanol industry. Both aim to usher in higher blends of ethanol, but via different mechanisms. One effort rides on low-carbon, the other high octane.

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The International Energy Agency on Oct. 27 released its World Energy Outlook 2022. The report, in part, predicts global biofuel consumption could more than double by 2030 and continue to increase through 2050.

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More than 1.3 million metric tons (80 million bushels of corn equivalent), equating to about $700 million dollars, were recently transacted and negotiated at the 2022 Southeast Asia U.S. Agricultural Co-operators Conference in Bangkok, Thailand.

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Negotiators from the European Parliament, Council and Commission have provisionally agreed to a plan that targets the phase out the internal combustion engine by 2035. They did not, however, entirely dismiss the contribution of renewable fuels.

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The USDA will host a virtual listening session on Nov. 3 that focuses on Section 22003 of the Inflation Reduction Act, which provides $500 million in biofuels infrastructure funding. A 30-day public comment period is also being opened.

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In late September, U.S. Grains Council ethanol staff traveled to Asunción, Paraguay, to take part in the ninth Bioenergy Week of the Global Bioenergy Partnership (GBEP). During the event, the USGC discussed ethanol and its benefits.

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Gevo Inc. has announced new fuel sales agreement with Qatar Airways for the purchase of 5 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo's future commercial operations.

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On Oct. 19, 2022, the U.S. EPA approved the continuation of ground-breaking research being done in Nebraska on the long-term adaptability and feasibility of E30 fuel. The initial E30 pilot program was launched in 2019.

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Growth Energy recently submitted comments to the Washington Department of Ecology and Oregon Department of Environmental Quality in response to the states' proposals to follow California's Advanced Clean Cars II regulation.

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The dualities of climate are hard. But rather than exist as opposites, they can work together. At COP27 and beyond, regulators should reach for the possible while leaning into the practical.

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Ethanol Producer Magazine's editor reflects on the magnitude of the industry's burgeoning CCUS opportunity while previewing the November edition's coverage, from policy and trade to carbon sequestration monitoring and lab products innovation.

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MN Bio-Fuels, along with other biofuel and agriculture stakeholders in the state, sent a letter to Gov. Tim Walz on Oct. 17 asking him to remain committed to a regulatory solution that will ensure the year-round availability of E15.

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A bipartisan group of senators, led by Sens. John Thune, R-S.D., and Dick Durbin, D-Ill., on Oct. 19 sent a letter to EPA Administrator Michael Regan urging the agency to establish robust and expanded RVOs in its upcoming RFS "set" rule.

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