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USDA: US exports 165 million gallons of ethanol in January

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By Erin Krueger

March 08, 2021

Policy Business Markets Coproducts 

The U.S. exported 164.63 million gallons of ethanol and 916,541 metric tons of distillers grains in January, according to data released by the USDA Foreign Agricultural Service on March 5. Exports of both products were up from the previous month.

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Thanks to the U.S. Grain's Council's work promoting the benefits of DDGS to Irish swine, producers in the country have upped their inclusion of U.S. DDGS significantly, opening a market worth tens of millions annually.

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Sens. Debbie Stabenow, D-Mich., and Joe Manchin, D-W.V., on March 1 introduced the American Jobs in Energy Manufacturing Act of 2021, which aims to incentivize domestic manufacturing of advanced energy technologies.

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Nebraska Attorney General Doug Peterson on March 1 filed a complaint in the District Court of Saunders County alleging multiple environmental violations by AltEn LLC, a 25 MMgy ethanol plant located in Mead, Nebraska.

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Gevo Inc. in late February announced it has signed a memorandum of understanding (MOU) to develop a renewable hydrocarbon plant in Germany and has amended an agreement with a European airline for an increased off-take of sustainable aviation fuel.

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The Carbon Capture Coalition on Feb. 24 released a national policy blueprint that includes near-term recommendations the group says policymakers should adopt in order to accelerate the deployment and commercialization of carbon capture projects.

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Glacial Lakes Energy has announced its four biorefineries participate in the carbon capture and storage (CCS) project being developed by Summit Carbon Solutions. The project with sequester carbon dioxide underground in North Dakota.

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Green Plains Inc. announced that development efforts between Green Plains, Fluid Quip Technologies and other innovation partners have led to the production of 58 percent sustainable Ultra-High Protein at Green Plains' Shenandoah, Iowa biorefinery.

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The USDA recently released its Grain Crushings and Co-Products Production report for February, reporting that corn use for fuel ethanol was at 430 million bushels in December, down from both the previous month and December 2019.

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Using ATP program funds, the U.S. Grains Council sponsored participation at the Global Ethanol Summit of ethanol buyers from nearly two dozen Middle Eastern, European and African countries, who subsequently purchased $245 million in U.S. ethanol.

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Tom Vilsack is once again leading the USDA. The Senate on Feb. 23 voted 92 to seven to confirm him as secretary of agriculture. Vilsack, a former two-term governor of Iowa, served as ag secretary during all eight years of the Obama administration.

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Summit Agricultural Group and Green Plains Inc. on Feb. 18 announced the launch of a large-scale carbon capture and storage (CCS) project in the Midwest that will lower the carbon footprint of biorefineries and other carbon dioxide emissions sources.

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Reps. David McKinley, R-W.V., and Marc Veasey, D-Texas, on Feb. 16 reintroduced the ACCESS 45Q Act. The bill extends the date for projects to begin construction to claim the 45Q tax credit by 10 years and provides a direct pay elective.

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The Andersons Inc.'s ethanol group performed well during the fourth quarter of 2020, said President and CEO Pat Bowe during the company's fourth quarter earnings call on Feb. 17. The first quarter of 2021, however, has seen falling margins.

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Just as ethanol has played an essential role in addressing the COVID-19 pandemic, the low-carbon fuel will also serve as essential energy for combatting climate change, RFA President and CEO Geoff Cooper said Feb. 16 at the 26th annual NEC.

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Even after experiencing a drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released by RFA.

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USDA Rural Development has announced it is now accepting applications for renewable energy systems and energy efficiency improvements through the Rural Energy for America Program. Applications must be submitted by March 31.

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New rollouts in clean-in-place processes are easing burdens on ethanol plants, but proper care to analyze the downstream impacts of these practices are crucial. Producers should be particularly mindful of protecting the integrity of their coproducts.

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Thermal Kinetics, a division of RCM Technologies (USA) Inc., has been contracted by Al-Corn Clean Fuels to expand its existing fuel ethanol facility to produce 20 MMgy of USP grade ethanol to meet the growing need for the sanitizer market.

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Commonwealth Agri-Energy has announced it can now produce high purity alcohol that meets and exceeds USP grade at its plant in Hopkinville, Kentucky. The company plans to produce best in class grain neutral spirits (GNS) in the future.

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Rep. Mike Thompson, D-Calif., chairman of the House Ways and Means Subcommittee on Select Revenue Measures, on Feb. 5 announced the introduction of the GREEN Act, which includes several tax extenders that would benefit biofuels and bioenergy.

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Todd Becker, president and CEO of Green Plains Inc., discussed the acquisition of Fluid Quip Technologies LLC and various improvements the company is making to its corn ethanol plants during a fourth quarter earnings call on Feb. 10.

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The RFA on Feb. 8 released two reports summarizing 2020 U.S. ethanol and distillers grains export and import data. These annual reports include the latest information on the important role U.S. ethanol and distillers grains play on the world stage.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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Alto Ingredients Inc., formerly Pacific Ethanol Inc., announced that it has increased its total annual production capacity of specialty alcohol to 140 million gallons, the majority of which will meet or exceed USP certifications.

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Varennes Carbon Recycling, the landmark waste to biofuels plant in Varennes, Québec, has now reached financial close, with investment agreements signed by Proman and its partners, Shell, Suncor, the Government of Québec, and Enerkem.

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The Carbon Capture Coalition on Jan. 21 sent a memo to President Biden's climate team that includes a targeted list of climate, energy, infrastructure and related federal policy recommendations for the first 100 days of his administration.

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The USDA recently released its Grain Crushings and Co-Products Production report for January, reporting that corn use for fuel ethanol was at 432 million bushels in November, down from both the previous month and November 2019.

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Valero Energy Corp. released financial results on Jan. 28, reporting reduced operating income and production levels for its ethanol segment. The company's renewable diesel segment, however, is growing.

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Representatives of the North Dakota ethanol industry on Jan. 20 testified in favor of a bill that aims to create a sales and use tax exemption for CO2 used for secure geologic storage. The state's senate voted in favor of the bill the following day.

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