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USDA announces REAP awards, opens new funding round

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By Erin Voegele

December 21, 2022

Policy Business Operations 

The USDA on Dec. 15 awarded $285 million to 844 projects under the Rural Energy for America Program. The agency also announced it is offering an additional $300 million in REAP funding, including $250 million allocated through the IRA.

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U.S. fuel ethanol production was down 3 percent the week ending Dec. 16, according to data released by the U.S. Energy Information Administration on Dec. 21. Ethanol stocks fell by more than 1 percent during the week.

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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 during the second half of November. Ethanol production and sales also increased.

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Ethanol Producer Magazine's editor points out that CI reduction is a recurring thread that keeps showing up in the publication's coverage, which this month includes enzymes and yeast innovation, CHP and a timely profile of an emergent SAF producer.

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While combined heat and power has been an enticing option for energy progressive ethanol plants for years, it's now a front-and-center play for producers on carbon reduction quests.

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With deep knowledge of corn biorefining, Gevo has pivoted to blaze a new trail in sustainable aviation fuel. The company's goal of producing net-negative carbon SAF pivots around the promise of low-carbon agriculture and decarbonized production.

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With advanced enzyme solutions, ethanol producers are unlocking more value from corn and other feedstocks. These evolved cocktails are designed for greater heat tolerance, higher output—including DCO yield—and, of course, next-generation pursuits.

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CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.�

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Today's ethanol producers expect new yeasts to be flexible agents of plant efficiency, yield enhancement, coproduct optimization and input reduction. Their suppliers have even higher expectations.

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U.S. fuel ethanol production fell by nearly 2 percent the week ending Dec. 9, according to data released by the U.S. Energy Information Administration on Dec. 13. Weekly ending stocks of fuel ethanol expanded by 5 percent.

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LanzaJet on Dec. 13 joined government officials, industry leaders, and investors to celebrate a major construction milestone at the LanzaJet Freedom Pines Fuels facility in Soperton, Georgia. The facility is expected to begin operations in 2023.

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U.K. ethanol producer CropEnergies in early December announced that it will continue operations at its Ensus production plant in Wilton, U.K. The company also announced plans to build a renewable ethyl acetate plant in Germany.

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Clariant on Dec. 12 announced that its sunliquid plant in Romania has not yet achieved the targeted yields and other operational parameters on an industrial scale. The company said it continues work to achieve commerical viability of the technology.

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Rex American Resources released fiscal Q3 results on Dec. 1, reporting increased sales for the three-month period ending Oct. 31. Executive Chairman Stuart Rose said the company remains profitable moving into Q4 despite challenging crush spreads.

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The FTC on Dec. 2 issued its 2022 Report on Ethanol Market Concentration. As in prior years, the FTC's analysis determined that there is sufficient competition among industry participants to avoid price-setting other anticompetitive behavior.

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The U.S. Energy Information Administration increased its forecast for 2022 fuel ethanol production in its latest Short-Term Energy Outlook, released Dec. 6. The forecast for 2023 fuel ethanol production was maintained.

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U.S. ethanol production was up 6 percent the week ending Dec. 2, according to data released by the U.S. Energy Information Administration on Dec. 7. Weekly ending stocks of fuel ethanol were up 1 percent.

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U.S. biofuels operable production capacity increased slightly in September, according to data released by the U.S. EIA on Nov. 30. Total feedstock consumption was down when compared to both the previous month and September 2021.

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UNICA, the Brazilian sugarcane industry association, has released data showing sugarcane processing by mills in the south-central region of the country was up significantly during the first half of November. Ethanol production was also up.

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President Joe Biden on Dec. 2 signed legislation to implement tentative agreements reached between railroads and workers in September, avoiding an economically devastating rail strike that was set to begin Dec. 9.

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The U.S. House of Representatives on Nov. 30 voted 290 to 137 to approve a bill that aims to adopt a tentative agreement between railroad workers and operators in an effort to avert an economically devastating rail strike.

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U.S. fuel ethanol production was down 2 percent the week ending Nov. 25, according to data released by the U.S. Energy Information Administration on Nov. 30. Weekly ending stocks of fuel ethanol were up nearly 1 percent.

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The House of Representatives is expected to vote on legislation on Nov. 30 to adopt a tentative agreement between railroad workers and operators in an effort to avert a potentially crippling national rail shutdown.

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The USDA recently released its Grain Crushings and Co-Products Production report for November, reporting that corn use for fuel ethanol was down in September when compared to both the previous month and September 2021.

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U.S. fuel ethanol production expanded by 3 percent the week ending Nov. 18, according to data released by the U.S. Energy Information Administration on Nov. 23. Ethanol stocks were up more than 7 percent.

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U.S. EPA Administrator Michael S. Regan has announced the appointment of 20 members, including the new committee chair and committee vice-chair to the Farm, Ranch, and Rural Communities Federal Advisory Committee.

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UNICA, the Brazilian sugarcane industry association, has released data that indicates sugarcane processing was up in late October when compared to the same period of 2021. Ethanol production and sales were also up.

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Aemetis Inc. announced on Nov. 16 that construction has begun for the TotalEnergies and Schneider Electric solar microgrid system with at 2.0 MW PV array and a 1.25 MW battery energy storage system at its ethanol plant in Keyes, California.

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U.S. fuel ethanol production fell by 4 percent the week ending Nov. 11, according to data released by the U.S. Energy Information Administration on Nov. 16. Weekly ending stocks of fuel ethanol were also down 4 percent.

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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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