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USDA predicts ethanol exports will reach a record 2 billion gallons in FY 2025

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By Erin Voegele

August 27, 2024

Markets Business 

The USDA currently predicts fiscal year (FY) 2025 U.S. ethanol exports will reach $4.3 billion. Export volumes are expected to edge up to a record 2 billion gallons, according the agency’s latest quarterly trade outlook, published Aug. 27.

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Canadian National Railway and Canadian Pacific Kansas City, the country’s two largest rail carriers, on Aug. 26 resumed operations after the Canadian Industrial Relations Board took action over the weekend to end a work stoppage that began Aug. 22.

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Caramuru, a Brazilian oilseed processor, on Aug. 20 announced it has formed a joint venture (JV) with Brazil based Biocen - Bioenergia Celeiro do Norte S.A to develop a corn ethanol plant in central Brazil.

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The U.S. Grains Council held its third annual Symposium on Pig Genetic Improvement and Ultrasonic Technology & Forum for Animal Nutrition in Taipei, Taiwan, in August to build on a solid foundation of U.S. DDGS exports to the country.

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UNICA, the Brazilian sugarcane industry association, has announced sugarcane processing in the south-central region of the country was down slightly in late July. Ethanol production and sales were both up during the two-week period.

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The RFA, Growth Energy and the USGC are among nearly three dozen U.S. agricultural and biofuel groups that sent a letter to Canadian Prime Minister Justin Trudeau on Aug. 19 urging him take action to ensure continued rail operations.

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The USGC recently took another step toward tapping into the market potential of the world’s most populous nation by escorting a group of Indian food and beverage industry leaders on a tour of U.S. farms, ethanol plants and research facilities.

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Brazil-based renewable energy company Be8 on Aug. 14 announced it has broken ground on a wheat-to-ethanol plant in Brazil. The 220-million-liter-per-year (58.12 MMgy) facility is currently scheduled to begin operations in 2026.

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U.S. fuel ethanol production was up slightly the week ending Aug. 9, according to data released by the U.S. Energy Information Administration on Aug. 14. Stocks of fuel ethanol were down nearly 2% and exports were down more than 66%.

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The U.S. exported 145.87 million gallons of ethanol and 645,592 metric tons of distillers grains in June, according to data released by the USDA FAS on Aug. 6. Exports of both products were up when compared to June 2023.

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U.S. fuel ethanol production fell nearly 4% the week ending Aug. 2, according to data released by the U.S. Energy Information Administration on Aug. 7. Ethanol stocks were down 1% and exports were up more than 262%.

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USGC supports ethanol implementation in Mexico

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By U.S. Grains Council

August 05, 2024

To support the development of ethanol blending programs in Mexico, the USGC organized a trade team of oil and gas industry leaders to help them better understand the production process, transport logistics and benefits of ethanol.

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U.S. Grains Council members are gathered in Salt Lake City, Utah, for the organization’s 64th Board of Delegates Meeting, held July 29-31. Market development activities for ethanol and distillers grains were among the topics addressed at the event.

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UNICA, the Brazilian sugarcane industry association, has reported that sugarcane processing during the first half of July was negatively impacted by rain. Ethanol production was down during the two-week period, but sales were up.

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Thailand’s newly proposed National Energy Plan is expected to set a target for sustainable aviation fuel (SAF) starting in 2026, according to a report filed with the USDA. The plan also includes targets for ethanol and biodiesel.

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Recently, nearly 100 industry stakeholders gathered for the U.S. Grains Council’s (USGC’s) 2024 Corn and Ethanol Conference in Tokyo, Japan. The event enhanced relationships between U.S. producers and agribusinesses and Japanese importers.

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The August issue of Ethanol Producer Magazine focuses on the next big market opportunity—sustainable aviation fuel (SAF).

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The U.K. Department for Transport on July 22 sent a written statement to the U.K. Parliament confirming that, subject to Parliamentary approval, the agency will introduce a sustainable aviation fuel (SAF) mandate starting on Jan. 1, 2025.

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Long-term success in developing new ethanol markets comes from showing prospective ethanol retailers how to “do the math.”

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UNICA, the Brazilian sugarcane industry association, has announced that sugarcane processing and ethanol production were both up during the second half of June. Ethanol sales were also up for the full month.

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Emerging opportunities in Southeast Asia for the U.S. Grains Council’s ethanol programs are beginning to show significant merit and engagement.

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The USGC sponsored the Global Bioenergy Partnership’s Bioenergy Week in Rome, Italy, in June where international biofuel stakeholders and policymakers recognized the efficiency and sustainability practices of biofuel production.

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Ethanol holds promise as an SAF feedstock, due in no small part to its availability of supply relative to lipid feedstocks, which are feeling global pressure.

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American Airlines consumed 2.7 million gallons of SAF in 2023, according to its 2023 Sustainability Report. While that volume of SAF use was up 4% when compared to 2022, it accounted for less than 1% of total fuel use during the year.

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Vale and Komatsu have signed a pioneering agreement to develop and test, in partnership with Cummins, Dual Fuel haul trucks, powered by a mixture of ethanol and diesel. They will be the world's first trucks of their size to run on ethanol.

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A new U.S. DOE report helps answer a basic—but big—question about the future of the U.S. SAF industry: Is there enough biomass feedstock to meet the nation’s goals?

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CoBank maintained its positive outlook for U.S. ethanol production in its latest Quarterly Research Report, released July 11, with higher margins and a strong export market continuing to benefit ethanol producers.

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USGC staff and representatives traveled to Vancouver, Canada, in June to join Advanced Biofuels Canada in hosting a sustainable aviation fuel (SAF) policy roundtable on the sidelines of a USDA agribusiness trade mission.

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The International Air Transport Association has called on South Africa to mobilize its experience, resources, and infrastructure to accelerate the development of sustainable aviation fuel (SAF) production.

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UNICA, the Brazilian sugarcane industry association, has released data showing that sugarcane processing, ethanol production and ethanol sales were up during the first half of June when compared to the same period of 2023.

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