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The Andersons restarts 2 ethanol plants

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By Erin Voegele

May 06, 2020

Business Operations 

The Andersons has resumed ethanol production at its ethanol plants in Albion, Michigan, and Denison, Iowa, after idling all five of its ethanol facilities in March due to falling liquid fuel demand caused by the COVID-19 pandemic.

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In these uncertain times, employing the “Now, Near and Next� approach can help companies prioritize investments in technology and innovation. Partnering with vendors and innovators to share in the investment and risk is critical.

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Heron Lake Bioenergy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 29 announcing the current shutdown of its ethanol plant in Huron Lake, Minnesota, will continue through the end of May.

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Green Plains Inc. released first quarter financial results on May 4. The company announced progress with its Project 24 and high-protein animal feed initiatives and discussed actions it taking as a result of the COVID-19 pandemic.

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Business Briefs

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By Ethanol Producer Magazine

May 03, 2020

Ethanol industry business announcements from the May issue of Ethanol Producer Magazine, including news from ACE Ethanol LLC and D3MAX, the U.S. Grains Council, and ERI Solutions.

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Commonwealth Agri-Energy in Hopkinsville, Kentucky, is using bearings coupled with sensors to monitor vibrations and temperature, giving the ethanol plant yet another cloud-connected, easy-to-install predictive maintenance tool.

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ADM held an earnings call to discuss Q1 results on April 30 and announced a partnership with Sazerac to increase hand sanitizer production. During the call, the company discussed the impact of COVID-19 on its operations, including biofuel production.

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With the world's largest ethanol conference rescheduled from mid-May to late August, the industry prepares to move 'onward in Omaha,' and BBI International provides an early look at the 2020 International Fuel Ethanol Workshop & Expo breakout panels.

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Valero released first quarter 2020 financial results on April 29. While the company's operations are being impacted by the COVID-19 pandemic, members of the executive team confirmed that demand for transportation fuels is beginning to rebound.

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U.S. ethanol production volumes were down slightly the week ending April 24. Weekly ethanol ending stocks, however, fell by nearly 5 percent after setting record highs for four consecutive weeks, according to data released April 29 by the EIA.

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BBI International has announced that the 2020 International Fuel Ethanol Workshop & Expo has been moved due to the outbreak of COVID-19. Originally scheduled for mid-June in Minneapolis, the FEW is now rescheduled to take place Aug. 24-26 in Omaha.

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Granite Falls Energy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 27 announcing its 62 MMgy ethanol plant in Granite Falls, Minnesota, will remain idle through at least May 18.

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ADM announced on April 23 it is idling ethanol production at the company's corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska, due to impacts of the COVID-19 pandemic. Approximately 90 employees will be furloughed.

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The U.S. EPA has released renewable identification number (RIN) generation data for March, reporting that 1.58 billion RINs were generated during the month under the Renewable Fuel Standard, including 34.4 million cellulosic RINs.

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U.S. ethanol production fell 1 percent the week ending April 17, to an average of 563,000 barrels per day, according to EIA data. While production is down significntly from February, the recent freefall in production levels seems to be flattening.

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UNICA, the Brazilian sugarcane industry association, recently announced mills in the south-central region of the country produced a record volume of ethanol during the 2019-'20 harvest season, which began April 1, 2019, and ended March 31, 2020.

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A new study by the Center for Agricultural and Rural Development at Iowa State University projects economic impacts of the COVID-19 outbreak will mean steep losses for Iowa agriculture, including over $2 billion each for the hog and ethanol sectors.

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The U.K. government recently released updated energy statistics that show liquid biofuel consumption reached 2.351 billion liters (621.07 million gallons) last year, up approximately 24 percent from 2018.

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The RFA estimates half of U.S. ethanol production capacity is offline. During a conference call held April 20, representatives of the ethanol industry discussed the impact COVID-19 is having on biofuel producers and stressed the need for federal aid.

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Fluid Quip Technologies Maximum Stillage Co-Products MSC has begun operations at Green Plains' ethanol plant in Shenandoah, Iowa. The MSC protein separation system began operations producing 50 percent Still Pro 50 protein within 24 hours of startup.

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Granite Falls Energy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 17 announcing it's 62 MMgy ethanol plant in Granite Falls, Minnesota, will remain idle through the end of April.

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In response to the COVID-19 pandemic, researchers and production staff at Poet have been working around the clock to produce an all-natural ethanol-based sanitizer to tackle the severe local shortage.

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UNICA, the Brazilian sugarcane industry association, is asking the Brazilian government to take action to help prevent the nation's sugar and ethanol industry from collapsing due to impacts of the COVID-19 pandemic.

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U.S. fuel ethanol production fell 15 percent the week ending April 10 to an average of 570,000 barrels per day, the lowest level since the U.S. Energy Administration began reporting weekly ethanol production data in mid-2010.

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In response to the ongoing COVID-19 pandemic, Green Plains Inc. is donating additional industrial grade alcohol from its facility in York, Nebraska, for the production of hand sanitizer to the states of Nebraska and Iowa.

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Marquis Energy has announced it is now producing mass amounts of hand sanitizer in response to the COVID-19 pandemic. The company is also continuing produciton of fuel ethanol and dried distilelrs grains (DDGs).

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Lake Area Corn Processors LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 13 announcing the company plans to reduce ethanol production at its 90 MMgy corn ethanol plant in Wentworth, South Dakota.

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Valero announced on April 13 it has temporarily idled eight of its ethanol plants and is reducing production at its remaining six ethanol plants due to COVID-19. Valero's renewable diesel operations have been less impacted by the pandemic.

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Granite Falls Energy LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 9 announcing it will extend the regularly scheduled annual shutdown of its 62 MMgy ethanol plant in Granite Falls, Minnesota, through at least April 17.

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More ethanol plants, including Big River Resoruces, Valero, Green Plains and KAPPA Ethanol, are helping combat the COVID-19 pandemic by aiding in the production of hand sanitizer and other disinfecting products.

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