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USGC addresses BC's updated LCFS with Canadian partners

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By U.S. Grains Council

May 02, 2023

Policy Business Markets 

In April, USGC ethanol staff traveled to British Columbia, Canada, to meet with provincial government officials, fuel suppliers and fuel retailers about the province's updated low-carbon fuel standard and increasing ethanol blends to E15.

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Verbio North America Holdings Corp. announced on May 1 the signing and closing of a purchase agreement with Mercuria Investments US Inc. to acquire South Bend Ethanol LLC. Verbio plans to add RNG production capacity to the facility.

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U.S. operable biofuels production capacity increased in February, with gains for ethanol, biodiesel and renewable diesel and associated fuels, according to data released by the U.S. EIA. Total feedstock consumption was up slightly from February 2022.

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BBI International has entered into a collaborative agreement with the Commercial Aviation Alternative Fuels Initiative to produce the first annual North American SAF Conference & Expo. The conference will be held in Minneapolis on Aug. 29-30.

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Fueled by Nebraska, a partnership of Nebraska biofuels organizations, and the Nebraska Soybean Board, is celebrating Renewable Fuels Month with giveaways, student contests, radio interviews, fuel promotions, and more.

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House Energy and Commerce Committee Republications on April 25 sent a letter to U.S. EPA Administrator Michael Regan urging the agency to reconsider its plan to open the Renewable Fuel Standard to certain sources of renewable electricity.

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The U.S. EPA on April 28 issued an emergency waiver that will allow E15 sales to continue through the summer 2023 driving season nationwide. Representatives of the U.S. ethanol industry are applauding the agency's decision.

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The U.S. House of Representatives on April 26 narrowly approved a debt ceiling package that significantly reduces the application of the IRA's clean fuel and SAF tax credits, but leaves the existing biodiesel and renewable diesel BTC intact.

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Valero Energy Corp.'s renewable diesel segment set a new sales volume record during Q1 while its ethanol segment reported a profitable three-month period with higher production volumes. The company is also progressing with plans to produce SAF.

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Novozymes released first quarter financial results on April 26, reporting that bioenergy sales were up 28 percent during the three-month period. Overall company sales were up 5 percent for the quarter.

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Summit Carbon Solutions has signed a multi-year agreement to sell carbon dioxide removal credits (CDRs) to the NextGen CDR Facility (NextGen). In total, NextGen announced the purchase of 193,000 tons of CDRs from three projects.

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ICM announced Element LLC was placed into receivership due to market-based disruptions that have impacted profitability, including high corn basis and reduce LCFS values. ICM technologies installed at the plant, however, exceeded expectations.

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Iowa lawmakers announce victory for ag, biofuel producers

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By Office of Rep. Mariannette Miller-Meeks

April 26, 2023

The Members of Iowa's Congressional Delegatio released a statement on the debt ceiling package negotiations, discussing efforts to amend the bill to protect biofuel tax credits that benefit ethanol producers and the ag community.

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Fibenol is starting up its first lignocellulosic biorefinery in Imavere. The recalcitrant lignocellulosic structures are effectively opened with a combination of Sunburst pre-treatment technology and tailored enzymatic cocktails from Novozymes.

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POET has signed an exclusive partnership agreement with Midwest Commodities in Detroit, Michigan. As part of the agreement, Midwest Commodities will provide DDGS truck-to-container transload services solely to POET.

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The USDA recently released its Grain Crushings and Co-Products Production Report for April, reporting that corn use for fuel ethanol in February was down when compared to both the previous month and February 2022.

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Reps. Julia Brownley, D-Calif., and Brad Schneider, D-Ill., on April 20 introduced the Sustainable Aviation Fuel Act, which aims to support the use of SAF via tax credits and the establishment of an aviation-only LCFS.

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The European Commission announced on April 26 that a political agreement has been reached on the REFuelEU Aviation proposal, which creates a mandate requiring the use of sustainable aviation fuel (SAF).

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U.S. fuel ethanol production fell by nearly 6 percent the week ending April 21, according to data released by the U.S. Energy Information Administration on April 26. Stocks of fuel ethanol were down nearly 4 percent.

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USGC Chairman Josh Miller joined USGC staff to share the benefits of U.S. ethanol at the Seoul Mobility Show in Seoul, South Korea. The USGC's Korea office also held various events for the nearly 4,000 attendees at its booth this year.

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The Andersons Inc. has announced that Element LLC, a joint venture with ICM Inc., has been placed into receivership. The plant is currently in an extended maintenance shutdown. future operating decisions will be made by the court-appointed receiver.

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Archer Daniels Midlands Co. released Q1 financial results on April 25, reporting its ethanol operations were impacted by low margins during the period. Despite continued volatility, the outlook for ethanol may be improved later in the year.

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RFA names new director of environment, health and safety

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By Renewable Fuels Association

April 24, 2023

The RFA has announced that industry veteran Justin Schultz joined the organization's staff as its new director of environment, health and safety (EH&S). In this role, he will serve as a resource to member companies on EH&S and regulatory issues.

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The looming battle over the U.S. debt ceiling could result in the repeal of the sustainable aviation fuel (SAF), clean fuels, clean hydrogen and renewable diesel/biodiesel tax credits, along with the scaling back of the 45Q tax credit for CCS.

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The U.S. EPA has released data showing nearly 1.91 billion RINs were generated under the RFS in March, up from 1.82 billion generated during the same period of last year. Total RIN generation for the first quarter of 2023 reached 3.63 billion.

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The Renewable Fuels Association has announced its new and improved Ethanol Emergency Response website, showcasing a cleaner, user-friendly resource where emergency responders can easily access the various types of training resources offered.

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Transitioning to E15 from E10 in Minnesota would contribute $1.06 billion to Minnesota's GDP, according to a new study by ABF Economics. The move to E15 would increase ethanol demand, benefits consumers and the economy, and reduce GHG emissions.

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The U.S. Grains Council's Europe, Middle East and Africa (EMEA) office had two opportunities to promote distiller's dried grains with solubles (DDGS) in March, including at an event in Turkey and a tour of three Saudi Arabian cities.

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The U.S. EPA on April 20 released new data on small refinery exemptions (SREs) that indicates two additional SRE petitions have been filed under the RFS during the past month. A total of 27 SRE petitions are now pending.

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Representatives of the U.S. ethanol industry urged the U.S. EPA to take immediate action to make E15 available during the summer 2023 driving season in comments submitted to the agency on April 20 as part of its Midwest E15 rulemaking.

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