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Ethanol’s Next Big Thing Isn’t Just Growth, but Change

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By Tom Bryan

July 24, 2024

Markets Sustainable Aviation Fuels 

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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Japan is working to develop standards for SAF according to a report filed with the USDA FAS's Global Agricultural Information Network on July 5. The government is expecting to begin drafting SAF legislation later this year.

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The U.S. exported 154.39 million gallons of ethanol and 1.01 million metric tons of distillers grains in May, according to data released by the USDA on July 3. Exports of both products were up when compared to the same period of last year.

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The U.S. Grains Council, in partnership with Iowa Corn, escorted a group of Vietnamese government officials and fuel industry professionals on a tour of the U.S. ethanol value during June to support the country’s growing demand for fuel ethanol

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In June, USGC staff brought teams of international pork association leaders to Des Moines, Iowa, for the World Pork Expo to familiarize them with U.S. producers and build a foundation for future feed grain sales.

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Increased use of lower-carbon liquid fuels in light-duty vehicles would lead to larger and faster reductions in GHG emissions than EPA’s recently finalized EV-forcing tailpipe emissions standards, according to a new study.

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Production and use of renewable ethanol from ePURE members and other EU producers reduced greenhouse-gas (GHG) emissions by an average of 79.1% compared to fossil fuels in 2023, according to newly certified data.

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U.S. fuel ethanol production expanded by more than 3% the week ending June 14, according to data released by the U.S. Energy Information Administration on June 20. Ethanol stocks were up nearly 2% and exports were down 39%.

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Industry responds to Brazil upholding 18% tariff on US ethanol

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By Renewable Fuels Association, Growth Energy and the U.S. Grains Council

June 18, 2024

The Foreign Trade Chamber at Brazil’s Ministry of the Economy has upheld an 18% tariff on U.S. ethanol. RFA, Growth Energy and USGC expressed disappointment in the decision and said they will continue to work to rectify the unfair tariff treatment.

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The U.S. Grains Council’s regional office for Europe, the Middle East and Africa held its second Buyers’ and Sellers’ Conference in Mombasa, Kenya in June to establish commercial connections between U.S. feed grain exporters and African importers.

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The SkyNRG Sustainable Aviation Fuel Market Outlook covers the current state and trends of the SAF market in the EU and U.K., the U.S. and rest of the world by assessing announcements of SAF projects and mapping out the capacity until 2050.

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U.S. fuel ethanol production fell by nearly 5% the week ending June 7, according to data released by the U.S. Energy Information Administration on June 12. Stocks of fuel ethanol were up nearly 1% and exports were up nearly 2%.

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The Philippines Department of Energy in May enacted a new policy that allows fuel retailers to increase blending to E20 on a voluntary basis. The country implemented an E10 mandate in 2013.

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The U.S. Energy Information Administration increased its forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released June 11. The agency maintained its forecast for 2024 ethanol consumption.

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The EU has committed to carbon-reduction goals centered around E10 blending across its member states. The USGC recently sent a delegation to the region to build relationships with industry stakeholders and policymakers in support of that goal.

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The U.S. exported 214.2 million gallons of ethanol and 970,164 metric tons of distillers grains in April, according to data released by the USDA Foreign Agricultural Service on June 6. Exports of both products were up when compared to April 2023.

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A Food, Feed and Fuel Manifesto

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By David Carpintero

June 05, 2024

The EU is entering a new political era, with voters electing a new Parliament and Member States sending new commissioners to Brussels. During this period of change, the ethanol industry is working to help build awareness of the fuel’s benefits.

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