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Positive US ethanol margins are driving ethanol production growth

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By U.S. Energy Information Administration

March 07, 2018

Policy Business Operations Markets 

Estimated ethanol production margins at U.S. corn ethanol plants averaged 22 cents per gallon (gal) in 2017. Last year was the fifth consecutive year that margins have averaged more than 20 cents/gal.

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Data released March 1 by the Energy Information Administration confirms that the U.S. ethanol industry produced a record amount of high-octane, low-carbon renewable fuel in 2017, according to the Renewable Fuels Association.

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UNICA, the Brazilian sugarcane industry association, has announced mills in the south-central region of Brazil sold 614.3 million liters (162.28 million gallons) of hydrous ethanol during the first half of February.

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On Feb. 28, Pacific Ethanol Inc. released fourth quarter and 2017 financial results. During an investor call, Neil Koehler, president and CEO of the company, provided an update of plant operations and said product margins are currently improving.

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On Feb. 21, Brazil's Ministry of Mines and Energy published a notice announcing that landfill gas-based fuels will be eligible to comply with the requirements of RenovaBio, the country's new national biofuels policy that was established in December.

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The American Coalition for Ethanol hosted a webinar Feb. 20 titled “Opportunities and Challenges to Increasing Ethanol Demand in 2018.� The webinar focused on ACE initiatives designed to ensure ethanol continues to grow in the U.S.

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U.S. exports of distillers grains—a high protein co-product of dry mill ethanol production used to feed livestock and poultry—totaled 11.08 million metric tons in 2017, according to a summary of 2017 ethanol coproduct trade data published by the RFA.

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FS Bioenergia has announced plans to develop a second corn ethanol plant in Brazil. The proposed project is currently in the licensing stage. Once constructed, the facility is expected to have a nameplate capacity of 680 MMly (179.64 MMgy).

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On Feb. 20, the European Union announced it is initiating an expiry review of anti-dumping measures on imports of U.S. ethanol. Current duties will remain in place during the European Commission's investigation, which is expected to take 15 months.

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The USDA Economic Research Service has released updated 10-year agricultural projections through 2027. The report predicts ethanol production will increase for several years, before declining to 2016 levels toward the end of the projection period.

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More than 150 business-to-business meetings between domestic ethanol producers and international buyers from five countries took place at the Renewable Fuels Association's National Ethanol Conference in San Antonio.

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The Andersons Inc. has released fourth quarter financial results, reporting net income of $68.4 million, or $2.42 per diluted share, for the three-month period, up from $10.1 million, or 36 cents per share, during the fourth quarter of 2016.

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A new legislative bill to fund more ethanol blender pumps across South Dakota is set to go before the state Senate Agriculture and Natural Resources Committee Thursday, Feb. 20. The bill is being proposed by Sen. Jason Frerichs.

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FROM THE MARCH ISSUE: The accidental discovery that a carbon, nitrogen and copper-based catalyst can convert carbon dioxide to ethanol shows potential.

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FROM THE MARCH ISSUE: Editor in Chief Tom Bryan previews the magazine, including features about a catalyst to convert carbon dioxide to ethanol, bacterial control, biofilm removal and liquefaction efficiency.

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The RFA today hailed the release of two studies by the Department of Energy that find ethanol-based high octane fuels can deliver substantial fuel economy improvements and emissions reductions when paired with optimized internal combustion engines.

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E15 Continues to Build Momentum

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By Mike O’Brien

February 14, 2018

FROM THE MARCH ISSUE: Growth Energy's Mike O'Brien outlines efforts and advances in the E15 market.

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FROM THE MARCH ISSUE: Jim Grey, of Renewable Fuels Canada, discusses Canada's biofuels success and what's coming.

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With record production, blending and exports for the U.S. ethanol industry last year, the outlook for the domestic ethanol industry isn't just strong—it's Ethanol Strong, said Bob Dinneen, president and CEO of the RFA, at the 23rd annual NEC.

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UNICA, the Brazilian sugarcane industry association, has announced that sales of hydrous ethanol set a new record in January, reaching a total of 1.36 billion liters (359.27 million gallons), up 51.77 percent when compared to January 2017.

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The Wisdom of Thumper

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By Ron Lamberty

February 12, 2018

FROM THE MARCH ISSUE: ACE's Ron Lamberty reviews a letter the Petroleum Marketers of America recently sent to the Federal Trade Commission.

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Gevo Inc. has strengthened its existing relationship with Musket Corp. by amending its isobutanol supply agreement to provide Musket with the exclusive right to sell Gevo's renewable isobutanol within a 300 mile radius of Houston, Texas.

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A new report shows that Ecuador may be a promising new market for ethanol. The country currently has an E5 mandate that it is not meeting and its domestic sugar industry is looking to expand to non-food products, according to a USDA FAS GAIN report.

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Green Plains Inc. has released fourth quarter 2017 financial results, reporting the company produced a record 340.8 million gallons of ethanol during the three-month period, up from 334.2 million gallons during the fourth quarter of 2016.

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The U.S. Energy Information Administration has published the February edition of its Short-Term Energy Outlook, maintaining its January forecast that ethanol production will average 1.03 million barrels per day in both 2018 and 2019.

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South America is home to some of the world's largest producers of ethanol and has a long tradition of biofuels consumption. As the region's renewable energy policies evolve, ICM Inc. intends to provide solutions and services for the growing demand.

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US exported a record 1.37 billion gallons of ethanol in 2017

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By Renewable Fuels Association

February 06, 2018

Government data released Feb. 6 confirms that U.S. ethanol exports set a new record in 2017, with an astonishing 1.37 billion gallons shipped to more than 60 countries around the world. The 2017 export total was up 17 percent from 2016.

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Today, well-known enzyme developer Novozymes launches Drive, the first product from its Innova yeast platform for corn ethanol production.

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Data released by the U.S. Department of Energy shows that gasoline consumed in 31 states contained more than 10.0 percent ethanol on average in 2016, proving once again that the so-called “E10 blend wall� continues to crumble.

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UNICA, the Brazilian sugarcane industry association, has announced increased sales of hydrous ethanol during the first half of January. Total ethanol production for the current season is up slightly when compared to the previous season.

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