The U.S. Environmental Protection Agency is finalizing revisions to the National Renewable Fuel Standard program (commonly known as the RFS program). This rule makes changes to the Renewable Fuel Standard program as required by the Energy Independence and Security Act of 2007 (EISA). The revised statutory requirements establish new specific annual volume standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel that must be used in transportation fuel. The revised statutory requirements also include new definitions and criteria for both renewable fuels and the feedstocks used to produce them, including new greenhouse gas (GHG) emission thresholds as determined by lifecycle analysis. The regulatory requirements for RFS will apply to domestic and foreign producers and importers of renewable fuel used in the U.S.
Key Actions
This final action lays the foundation for achieving significant reductions of greenhouse gas emissions from the use of renewable fuels, reductions of imported petroleum and further development and expansion of our nation’s renewable fuels sector.
This action is also setting the 2010 RFS volume standard at 12.95 billion gallons (bg). Further, for the first time, EPA is setting volume standards for specific categories of renewable fuels including cellulosic, biomass-based diesel, and total advanced renewable fuels. For 2010, the cellulosic standard is being set at 6.5 million gallons (mg); the biomass-based diesel standard is being set at 1.15 bg, (combining the 2009 and 2010 standards as proposed).
In order to qualify for these new volume categories, fuels must demonstrate that they meet certain minimum greenhouse gas reduction standards, based on a lifecycle assessment, in comparison to the petroleum fuels they displace.
For its final determinations, EPA is using the best available models and has incorporated updated
information based on:
• significant new scientific data available to the agency
• rigorous independent peer review
• extensive public comments
For the fuel pathways modeled, the following meet or exceed the respective required minimum GHG reduction standards:
• corn based ethanol plants using new efficient technologies
• soy based biodiesel
• biodiesel made from waste grease, oils, and fats
• sugarcane based ethanol
Fuels derived from cellulosic materials meet, and generally significantly exceed, the minimum GHG reduction standard.
Additional information on these and other key changes can be found below.
New Renewable Volume Standards
This final rule revises the annual renewable fuel standards (RFS2) and makes the necessary program
modifications as set forth in EISA. Of these modifications, several are notable. First, the required renewable fuel volume continues to increase under RFS2, reaching 36 bg by 2022. The following chart shows the volume requirements from EISA:
Today's announcement by the Brazilian Chamber of Foreign Trade (CAMEX) to postpone a decision to reduce Brazil's ethanol import duty from 20% to zero means it will take a bit longer for the move to be announced, but not for its impact to take effect once the decision is made. That's how the Brazilian Sugarcane Industry Association (UNICA) views what it describes as little more than a "bureaucratic" delay. According to UNICA President and CEO, Marcos Jank, the government should still make its announcement as soon as possible, even if the measure only becomes effective in July: "We are very encouraged by the statement from Brazil's Agriculture Minister, Reinhold Stephanes, who said after the meeting that it is 'highly probable' that the tariff on imported ethanol will be dropped as of
July." ...more
On January 29, 2010 Delta-T Corporation ceased all operations and the assets, including the Delta-T Technology, were acquired at public auction by Applied Process Technology International, LLC. Creditor inquiries should be sent to Roussos, Lassiter, Glanzer & Marcus, P.L.C., Crown Center, Suite 300, 580 East Main Street (23510), P.O. Box 3127, Norfolk, VA 23514-3127, Attn: Robert V. Roussos. All other inquiries should be sent to Delta-T Corporation, 5251-18 John Tyler Hwy., Box # 368, Williamsburg, VA 23185.
FA response to EPA ruling: RFS Rules "Workable", however
ILUC Inclusion Still Problematic. A response to the Obama Administration’s Biofuels Plan was released earlier this morning and is available here . Today, the U.S. Environmental Protection Agency (EPA) promulgated the final rule for implementation of the expanded Renewable Fuels Standard (RFS2). Among other provisions, the RFS will set mandatory blend levels for renewable fuels while implementing a framework for carbon emissions calculations that will be the basis for future carbon reductions from fuel...more
Potential Ethanol pipeline to create thousands of Unnited States jobs. Report estimates 80,000 jobs possible by POET/Magellan partnership
A proposed ethanol pipeline would be an economic boost for the U.S., a new report demonstrates, creating almost 80,000 direct, indirect and induced jobs across the country.
POET and Magellan Midstream Partners, L.P. have formed a joint venture to assess the feasibility of a 1,800-mile ethanol pipeline from ethanol production facilities in the Midwest, starting at Davison County, S.D., to distribution outlets in the northeast U.S., ending in Linden, N.J. Once the feasibility study is complete, the pipeline would be operational as early as 2014...more
The 18th European Biomass Conference and Exhibition will be chaired by Prof. Josef Spitzer, Joanneum Research, Austria, Chairman of the IEA Bioenergy Implementing Agreement. The Conference in May 2010 will be a platform for discussing the outcome of COP15 in Copenhagen 2009 and the national energy strategies, including the role of bioenergy, which will be announced in June 2010 by the Member States of the European Union...more
RFA President Bob Dinneen letter to CARB "I am writing to seek clarification on several issues related to reporting and compliance obligations for the Low Carbon Fuels Standard (LCFS). As the planned implementation date for the LCFS is rapidly approaching, our member companies who would be considered regulated parties under the LCFS are increasingly concerned about their ability to fulfill required reporting and compliance obligations under the program. This is because the reporting mechanisms and compliance tools apparently still have not been completed...more
Just today, December 1, 2009, the United States EPA has decided to postpone the decision on allowable ethanol blends in gasoline. They will postpone a decision on whether to raise the percentage of ethanol allowed in gasoline, and keep the maximum blend level at 10 percent, and at some point in the future, expand the maximum blend level based on a study of the effects of higher ethanol blends on engines for cars and other equipment such as lawn mowers. December 1, 2009, was the deadline to make a decision resulting from the Growth Energy request for a waiver to allow up to 15 percent ethanol blends. After a turbulent year, the ethanol industry was looking at today’s deadline with cautious optimism, with hopes for an increase from 10% up to 12% to 13% ethanol blends in gasoline. Earlier this year, in March, Growth Energy, an ethanol industry trade association, submitted a formal request to the United States Environmental Protection, requesting permission under the Clean Air Act to allow the use of conventional gasoline that contains as
much as 15% ethanol. Other than E85 (85% ethanol) the current maximum limit has been 10% since 1978. Throughout the process, the EPA was steadfast in their commitment to make a public decision regarding the waiver request on or before December 1, 2009.
The new Inbicon Biomass Refinery got a royal reception at the grand opening in the Danish port of Kalundborg last week. His Royal Highness Prince Joachim led the inauguration of the first Inbicon plant to publicly showcase its technology for turning straw into ethanol. He was accompanied by Fritz H. Schur, chairman of the supervisory board of DONG Energy, Inbicon’s parent company; Anders Eldrup, DONG Energy CEO; and other Danish and European Union officials whose organizations provided financial support to the plant...more
Archer Daniels Midland (ADM) reports Q1 results, for the period ending September 30, 2009. ADM reported announced earnings of $ 496 million and net sales of $ 14.9 billion for the quarter ended September 30, 2009...more
Just weeks before Copenhagen fills with world leaders attending the 15th annual United Nations Climate Change Conference, we’re celebrating the Grand Opening of Inbicon’s Kalundborg plant.
As the first demonstration model of an Inbicon Biomass Refinery, the new plant can turn 110 tons of wheat straw per day into 1.5 million gallons a year of The New Ethanol and other renewable energy products.
On November 18, His Royal Highness Prince Joachim of Denmark will lead the Danish delegation participating in the opening ceremonies. 1.5 million gallons is not a misprint,” CEO Niels Henriksen points out. “At a time when the U.S. press is giving bloated attention to 50,000 gallon projects, the size and scope and sophistication of Inbicon projects are quietly making history.”
Wheat isn’t the only biomass we can handle. At our pilot plants, Inbicon’s patented and proprietary technology has successfully converted corn stover, sugar bagasse, empty fruit bunches, miscanthus, and other soft biomass...more
USDA
Weekly Weather and Crop Bulletin, October 14, 2009 -
National Weather Summary -
Highlights: Flooding rains developed from the southeastern Plains into the middle Mississippi and lower Ohio Valleys in advance of a strong cold front.
Weekly rainfall totaled 4 to 8 inches in the flood-affected areas, halting fieldwork and threatening the quality of unharvested summer crops. Generally light to moderate rain fell across the remainder of the Midwest and South, hampering harvest activities. Crop-quality concerns persisted in the Delta, where as much as 2 to 4 inches of rain fell. Toward week's end, some wet snow blanketed the upper Midwest. Late-week snow also fell across the northern half of the Plains, while torrential rain soaked the southeastern Plains. In general, the Plains' cool, wet conditions limited fieldwork and slowed the emergence and development of recently planted winter wheat...more
October 9, 2009, USDA Forecast - U.S. feed grain supplies for 2009/10 are projected higher this month as increased corn and barley production and higher sorghum beginning stocks more than offset lower corn carryin and reduced sorghum production. September 1 corn stocks, as reported in the September 30 Grain Stocks report, reduced 2009/10 corn beginning stocks as higher corn use for ethanol, sweeteners, starch, and exports boosted June-August use. Corn production for 2009/10 is forecast 63 million bushels higher with a 2.3-bushel-per-acre yield increase more than offsetting a 700,000 acre reduction in harvested area...more
Corn ending stocks for 2009/10 are projected 37 million bushels higher and just below the revised estimate for the 2008/09 marketing year. The 2009/10 marketing-year average farm price projection is unchanged at $3.05 to $3.65 per bushel. Sorghum supplies for 2009/10 are projected 12 million bushels lower as reduced production more than offsets higher beginning stocks. Production is forecast 26 million bushels lower with reduced area and yields...more
The corn crop condition report on Monday, July 27, 2009, was 2% very poor, 6% poor, 22% fair, 52% good (54% last week, 49% last year), and 18% (18% last week, 17% last year) of the corn crop was in excellent condition. So, 70% of the crop is currently in good to excellent condition, which compares to 66% last year.
Last week we reported that the current crop condition continues to be very bullish, especially for the central Corn Belt, where growing and development conditions are near perfect this week. However, this week, conditions are different. CME corn futures increased yesterday, moving up 6 cents to $3.222 per bushel, on growing speculation that the cool weather conditions, actually, the coldest July in nearly 50 years, may have slowed corn development in the United States, which would increase the risk for freeze damage later in the year. How strange is that? Normally, July would bring excessive heat, and perhaps low moisture.
However, temperatures in the Corn Belt have averaged 7f to 8f below normal for virtually all of July and late June. Low temperatures delay full maturity, which would in turn extend the crop later in the year which increases the risk for freeze damage. What ever happened to global warming?
CME corn September futures increased yesterday, moving up 6 cents to $3.222 per bushel, and the December contract moved up 6.5 cents $3.338 per bushel. Prices have decreased over 18% this year. Last Wednesday, the national corn cash price Index settled lower at $2.892 per bushel.
MGP Ingredients announced on Tuesday that they entered into a new revolving credit and security agreement with Wells Fargo National Bank Association. The agreement, which matures in July 2012, generally provides for a Maximum Line of Credit of $25 million subject to borrowing base limitations. As of Tuesday, July 21, 2009, approximately $19.3 million was available under the agreement before the initial funding. With this agreement in place, the Company drew $15.9 million under the new credit facility to pay all obligations under the previous credit facility to Commerce Bank, N.A. Back in early February 2009, MGP Ingredients, due to eroding fuel ethanol market conditions, announced that they decided to exit the fuel ethanol business, and effectively shutting down their Pekin, Illinois, facility, At the time, they announced that they would also temporarily discontinue food grade alcohol production in Pekin for a period of 90 days. Meanwhile, they are continuing to optimize food grade alcohol (industrial and beverage) production at its Atchison, Kansas, facility...more
Fuel ethanol production in the United States continues to increase, and farmers planned ahead, and planted 87 million acres of corn this year, 2 million acres more than initial USDA estimates back in March. However, corn prices continue to drop like a rock. The National Corn Cash Price Index settled lower Thursday, July 16, 2009, settling at $2.945 per bushel. This simple fact should answer the skeptics who claim that ethanol is the cause for higher food prices. The United States is both the world's largest producer of both corn and ethanol.
Corn plunged to a seven month low on Thursday, July 16, 2009, pulling soybeans down as well. Cash and futures prices fell on news that the unseasonably cool weather will be around for the next ten days throughout the Corn Belt, providing for excellent moisture retention, and near perfect growing conditions.
Kansas Governor Mark Parkinson has joined nine other Midwest governors, with the request that Environmental Protection Agency (EPA) increase ethanol blending limits from 10 percent up to 15 percent. The governors recently signed a letter sent to EPA Administrator Lisa Jackson as part of public comment on proposed changes to federal rules, during the open comment period, which expires next week. The federally mandated blend level has been at 10 percent, or E10, since the 1970s. On March 6, Growth Energy and 54 ethanol manufacturers submitted an application to the EPA requesting the increase to E15. Jackson has until December, 1, 2009, to rule on that request. THe other governors who have signed the letter are Illinois' Pat Quinn, Indiana's Mitch Daniels, Iowa's Chester Culver, Michigan's Jennifer Granholm, North Dakota's John Hoeven, Ohio's Ted Strickland, South Dakota's Mike Rounds and Wisconsin's Jim Doyle.
AIR Worldwide has forecasted that United States corn yields will increase to a record 163.7 bushels an acre, which compares to the most recent USDA forecast of 153.4 bushels per acre Florida startup Algenol Biofuels says that it can efficiently produce commercial quantities of ethanol directly from algae without the need for fresh water or agricultural lands. Their technology has captured the interest and backing of Dow Chemical. The companies recently announced plans to build and operate a demonstration plant on 24 acres of property at Dow's sprawling Freeport, TX, manufacturing site. The plant will consist of 3,100 horizontal bioreactors, each about 5 feet wide and 50 feet long and capable of holding 4,000 liters.
Exxon Mobil Corporation (NYSE: XOM) announced today an alliance with leading biotech company, Synthetic Genomics Inc. (SGI), to research and develop next generation biofuels from photosynthetic algae. “This investment comes after several years of planning and study and is an important addition to ExxonMobil’s ongoing efforts to advance breakthrough technologies to help meet the world’s energy challenges,” said Dr. Emil Jacobs, vice president of research and development at ExxonMobil Research and Engineering Company. “Meeting the world’s growing energy demands will require a multitude of technologies and energy sources. We believe that biofuel produced by algae could be a meaningful part of the solution in the future if our efforts result in an economically viable, low net carbon emission transportation fuel.” ...more
Democrat Al Franken is declared the winner of the contested Minnesota
Senate Seat. Quotes from Al Franken, "Corn ethanol is a step on the way
to cellulosic ethanol, which is also going to benefit MN. I'm in the
pro-ethanol camp." and "it seems to me that ethanol already helps our
carbon footprint and it's only getting more efficient in the way it's
produced." Looks like another friend for ethanol on The Hill.
EIA Petroleum Marketing Monthly - April; International crude oil prices were influenced by modest signs of recovery in world financial markets and economies. Prices for key streams experienced less volatility over the course of the month, despite brimming inventories and some reports of an increase in output from some Organization of Petroleum Exporting Countries (OPEC) thanks to the focus on economic data trends. Prices took a step down at mid-month following the release of an International Energy Agency (IEA) report in which the organization reduced its oil demand forecast for 2009. U.S. inventory data showing crude oil stocks at long-term highs also pressured prices. Nevertheless, news suggesting some improvement in economic trends in major markets provided enough support to keep prices from experiencing more profound decreases...more
On Friday, June 26, 2009, the United States House of Representatives passed the Energy/Climate Bill (H.R. 2454) to create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy. The bill passed, 219-212, and all but eight Republicans voted against the bill, stating that the bill would end up being an energy tax, that would be paid for by American taxpayers. Additionally, 44 Democrats also voted against the bill, due to it having a disproportionate impact in states that are highly reliant on coal for electricity This is indeed the most far reaching energy bill to combat global warming. It is the “cap and trade” bill, which was written by the Democrats, and it establishes a national system to reduce greenhouse gases by 17 percent over the next 11 years, and by 83 percent by 2050. The "cap and trade" part of the bill established a market where factories, oil refineries and power plants could buy, sell and trade credits that would allow them to emit only so much carbon dioxide and other pollutants. The permissible amounts would be lowered over time. The 1,200 page bill also requires the broader use of renewable power, sets new standards for energy efficiency in homes and appliances, spurs development of electric vehicles and expands systems for transporting electricity...more
With respect to ethanol, and as discussed late last week, there was a major legislative development in Washington on Wednesday with respect to Indirect Land Use Change (ILUC). The subject had become a negotiating tool in the Climate Change bill. On Wednesday, House Agriculture Committee Chairman Collin Peterson released a statement announcing that an agreement had been reached, which effectively bars the EPA for five years from calculating indirect land use changes with respect to measuring greenhouse gas emissions. During the five year period, the EPA, USDA, National Academy of Sciences and others will work together to develop a more scientifically accurate model for the calculations. In a release, Peterson stated "We have reached an agreement that works for agriculture and contributes to the reduction of greenhouse gas emissions in the United States. This agreement also addresses concerns about international indirect land use provisions that unfairly restricted U.S. biofuels producers and exempts agriculture and forestry from the definition of a capped sector"
June 22, 2009 - Corn Crop Condition - 1% very poor, 5% poor, 27% fair, 56% good (45% last year), 11% excelllent (9% last year) http://www.twitter.com/EthanolMarket
June 22, 2009 - NYMEX gasoline fell 6.47 cents to 185.97 cpg, lowest close since May 26. CME EtOH off 2.8 cents to 168.0 cpg, CME corn down 14 cents at 385.2 cent per bushel. Crude down $2.62 at $66.93. This is lowest close since June 3 and the largest one day drop since May 15. Prices was on $73.23 on June 11, 2009 http://www.twitter.com/EthanolMarket
June 22, 2009 - After 54 straight days of increases, the national ave for regular gas fell Sunday down to 269 cpg. Prices are up over 60 cpg since ...less than 5 seconds ago...from our Twitter page, http://www.twitter.com/EthanolMarket
USDA World Agricultura;l Supply and Demand Estimates, June 10, 2009 COARSE GRAINS: U.S. feed grains supplies for 2009/10
are projected lower with reduced prospects for corn yields
and production. Corn production for 2009/10 is projected at
11.9 billion bushels, down 155 million from last months
projection. The national average yield is projected at 153.4
bushels per acre, 2 bushels lower as continued planting
delays through late May reduce yield prospects, especially for
the eastern Corn Belt. Early planting in the western Corn Belt
and improved crop conditions from last year at this time, as
reported in the June 8 Crop Progress, are expected to partly
offset the poor start to this yearÂ’s crop in other parts of the
country. Corn supplies are projected at 13.6 million bushels,
down 190 million bushels from 2008/09...more
Retired General Wesley Clark, co-chairman of Growth Energy, will deliver the keynote address at the 2009 Fuel Ethanol Workshop & Expo (FEW), which runs next Monday, June 15 through 18, at the Colorado Convention Center in Denver, Colorado. General Clark will speak at 8:30am on Tuesday.
On Thursday, June 11, 2009, Senator Jim Webb (D-VA), along with 20 other Senators, wrote to EPA Administrator Lisa Jackson Tuesday to request more comprehensive testing on ethanol prior to raising the ratio that can be mixed into gasoline. The letter emphasizes that air quality and technical issues should be explored, as well as potential adverse effects on consumers and livestock and poultry producers during these hard economic times. The letter was also sent to Steven Chu, Secretary of the Department of Energy; Tom Vilsack, Secretary of the Department of Agriculture; and Carol Browner, Assistant to the President for Energy and Climate Change. Par of the letter stated “While increased production and use of ethanol has helped advance the goal of energy independence, it has had the unintended consequence of sharply increasing costs for corn and other sources of feed,” says Webb. “This in turn has negatively affected beef cattle, dairy and poultry producers. I believe it is important to fully understand the impact that increasing the use of corn ethanol would have on food costs. Moreover, prior to increasing the percentage of ethanol that can be blended into gasoline, the EPA should study the effects of ethanol on emissions and durability of different types of gasoline-powered engines.”
However, last month, a report from the Congressional Budget Office (CBO) confirmed what many economists and industry experts have stating for months. The report concluded that using corn for ethanol has little impact on the price of food. Rather, the main culprits driving the higher cost of food are energy costs, excessive unregulated speculation in the commodities future market, and a weak dollar. The CBO analysis said that ethanol was only responsible for 0.5 to 0.8 percent of the rise in food prices.
Large uncertainties in calculating international land use change effects and associated greenhouse gas emissions remain in the Environmental Protection Agency’s life cycle assessment of biofuels for the Renewable Fuel Standard. The Biotechnology Industry Organization (BIO) today asked EPA to maintain flexibility to adjust and update the RFS regulations and the life cycle assessments of biofuels as the science matures. BIO submitted its comments at a public hearing on the Renewable Fuel Standard held by the EPA in Washington today.
Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, released the following statement:
“The Renewable Fuels Standard will be a critical tool to accelerate commercialization of advanced biofuels. As EPA’s preliminary analysis shows, advanced biofuels have the potential to help reduce atmospheric carbon dioxide by providing net carbon sequestration, while enhancing energy security and revitalizing rural economies...more
Text of RFA President Bob Dinneen speech at the Ethanol Summit in Brazill in early June 2009. How many of you are familiar with the Indianapolis 500? It’s a little car race we have in the States.
300,000 people attend, and millions more watch on television in the U.S. and around the globe.
How many people, like me, watched the race 10 days ago?
How many people think Sao Paulo native Helio Castroneves won that race?
Wrong! Well, he might have finished first. But the real winner of that historic race was Ethanol! Ethanol
is in its 3rd year as the official fuel of America’s biggest auto race.
After all, there is no more demanding test for a fuel than racing at the Indy 500. The racecars reach speeds averaging 220 miles per hour. There is zero tolerance for engine failure. Because of its high-octane content, ethanol allows cars to attain and sustain great speeds. Because ethanol burns at a higher compression ratio, the engines resist deterioration. Because it has more energy content than methanol, cars can go further on a gallon of fuel, tanks can be designed smaller, and, because unlike methanol, ethanol burns with a flame, the racing is safer for drivers. Ethanol was the real winner of that race, and because most everyone in this room is an advocate for the increased production and use of fuel ethanol, and, indeed, because some in this room actually sponsored the fuel for this year’s Indy, you all can take some measure of satisfaction in Helio’s victory...more
Tom Buis, CEO of Growth Energy, testified before the House Committee on Agriculture on Low Carbon Fuel Standard proposals under consideration at both state and federal levels. His written statement, as prepared for delivery, is below. "
Mr. Chairman, Ranking Member, and Members of the Committee I appreciate the opportunity to testify here today on the various state and federal efforts to create a low carbon fuel standard. My name is Tom Buis, CEO of Growth Energy.
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach – Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. Our members do more than support a low carbon fuel standard; they have been working to perfect and produce low carbon fuels for decades. All of their work has paid off. Based on a recent study published in Yale’s Journal of Industrial Ecology, ethanol produced from corn in modern facilities reduces greenhouse gas emissions by more than 50 percent in comparison to gasoline...more
Friday, May 8, 2009, Senator Lugar Slams EPA Ruling, “At this time when we all seek to work with the President to improve the economy through new energy investment, it is unfathomable that the EPA would act to curtail a great boon to rural development,” U.S. Sen. Dick Lugar wrote today in a letter to Environmental Protection Agency Administrator Lisa Jackson.
Lugar said that the proposed EPA rule uniquely applying a life-cycle greenhouse gas emissions standard to ethanol was “highly speculative and imperfect” and “economic models simply do not accurately capture indirect emissions with an acceptable degree of certainty. . . I urge you to halt consideration of lifecycle greenhouse gas emissions due to lack of sufficient information, and work with Congress to find a workable solution.”
...more
Today, April 24, 2009, the California Air Resources Board voted to enact a standard that unfairly penalizes biofuels as compared to other fuels, including gasoline. "We're disappointed with the Board's vote," said General Wesley Clark, co-chairman of Growth Energy. "This was a poor decision, based on shaky science, not only for California, but for the nation. It is unfair to selectively single out the indirect effects of one fuel pathway while ignoring the significant indirect effects of all other fuels, including petroleum. Today's decision puts another road block in moving away from dependence on fossil fuels and stifles development of the emerging cellulosic industry."..more
The Environmental Protection Agency (EPA) announced on Thursday that they are seeking public comments regarding the waiver application to increase the amount of ethanol blends in gasoline, up from the current 10 percent maximum level, up to 15 percent. The 10 percent level has been in place since 1978, for conventional vehicles, not flex fuel vehicles or E85 capable vehicles. The comment period is open for 30 days. Thereafter, the EPA has 270 days to make a decision. The public comment period is in response to the March 6th, 2009, filing by Growth Energy and a number of other ethanol producers, waiver application to increases the maximum blend levels up to 15 percent.
To approve the higher ethanol blend request, the EPA only needs to determine that ethanol blends up to 15 percent will not affect the emission control systems in vehicles. General Wesley Clark, co Chairman of Growth Energy, said that Growth Energy made the request to raise the cap based on multiple sources of scientific data showing that E15 has no adverse effects on a car's performance, maintenance, or emissions controls. In fact, a study by the Department of Energy concluded that when E15 was compared to traditional gasoline, there were no significant changes in vehicle tailpipe emissions or vehicle drivability as ethanol content increased. General Clark also mentioned that the waiver request would not impact small engines since gas stations would still be able to sell lower blends of ethanol, including gasoline with zero ethanol (E0). he EPA has opened up Context of Growth Energy’s Waiver Application -
On March 6, 2009, Growth Energy and 54 ethanol manufacturers submitted a waiver application to the Administrator, pursuant to section 211(f)(4) of the Act, for ethanol-gasoline blends containing up to 15 percent ethanol by volume (“E15”).
Growth Energy maintains that under the renewable fuel program requirements of the Energy Independence and Security Act of 2007, which is now primarily satisfied by the use of ethanol in motor vehicle gasoline, there exists a “blend barrier” or “blendwall” by which motor vehicle gasoline in the U.S. essentially will become saturated with ethanol at the 10 volume percent level very soon. Growth Energy maintains that a necessary first step is to increase the allowable amount of ethanol in motor vehicle gasoline up to 15 percent (E15) in order to delay the blendwall. They also claim other ways of delaying the blendwall could include adding more stations offering E85 blends and bringing in the renewable fuel mandate specified in the Energy Independence and Security Act of 2007. For its part, Growth Energy claims that the “blendwall” will make those renewable fuel mandates unreachable and that there are substantial environmental benefits associated with higher ethanol blends...more
Several weeks ago, we reported “fourteen days and counting!!!” with respect to the Grain Stocks report and the Prospective Plantings report, both of which were released today, March 31, 2009.The March 1, 2009, inventory estimate report is quite important for both corn and soybeans, but probably more significant for corn, because for this time in the marketing year, the actual rate of soybean consumption is more predictable than corn, so no surprises are really expected for soybeans. We predicted that the Prospective Plantings report will certainly be a surprise to everyone, because right now it is very difficult to predict due to the volatility in the crude oil, ethanol, corn and soybean markets. In February 2009, the last official projection by the USDA, was approximately 86 million acres for corn plantings, and 77.0 million acres for soybeans. At the time, we thought that the USDA corn estimate was high, and that the soybean estimate was low. Corn planting for 2008 totaled 85.983 million acres. As of March 1, 2009, our 2009 projection for corn plantings was between 81.00 and 82.00 million acres, due to soybean favor and uncertainty in the ethanol market...more
The USDA will release two reports on March 31 that could have important implications for corn and soybean prices. These are the March 1 Grain Stocks report and the Prospective Plantings report. The March 1 inventory estimate should be more important for corn than for soybeans, since the rate of soybean consumption is well known, except for seed and residual use. The March 1 stocks estimate for soybeans, then, should be well anticipated. Any large deviation from the expected level would point to an error in the estimated size of the 2008 crop. For corn, the March 1 stocks estimate will reveal the rate of domestic consumption during the second quarter of the 2008-09 marketing year. Any large deviation from the expected level would mean that consumption occurred at a faster or slower rate than projected and/or the size of the 2008 crop was incorrectly estimated. The expected level of consumption during the quarter, however, is likely in a wide range.For soybeans, exports during the second quarter of the 2008-09 marketing year can be estimated from weekly USDA reports, although the official Census Bureau estimates are currently available only through December 2008. The January 2009 estimates should be released this week. Through December, cumulative Census Bureau export estimates exceeded, USDA estimates by 37 million bushels. Assuming that margin continued through February, second quarter exports would have totaled about 480 million bushels...more
CME Group - FREE Ethanol Webinars: Tools and Opportunities to Help You Mitigate Counterparty Risk
Wednesday, March 11 and March 18 at 3:00 p.m. Central Time (CT).
In the current environment marked by uncertainty, centrally-cleared derivatives help market participants eliminate
counterparty risk through the undisputed strength of CME Clearing. CME Group provides participants with even
more opportunity to manage risk in the growing ethanol marketplace with the now combined suite of NYMEX
and CBOT contracts – including the flexibility and ease of submitting OTC transactions for clearing on the
CME ClearPort system...more
Today, February 23, 2009, at the 14th annual National Ethanol Conference, Danish biotech pioneer Inbicon announced a series of technical and marketing initiatives for bringing commercial-scale cellulosic ethanolto North America. Under the banner of The New Ethanol, and in collaboration with the U.S.-based G-team, Inbicon is putting the finishing touches on new engineering and business model that incorporates its proprietary technology into a new pathway for converting biomass to ethanol. CEO Niels Henriksen says, “our new model of the Inbicon Biomass Refinery will allow North American grain-ethanol plants to add 20 million gallons a year of The New Ethanol to their output. Better yet, the new model generates its own bio-power, enough to not only produce The New Ethanol but also send a significant amount of green electricity and steam to the host plant, cutting the host’s energy costs dramatically.” The G-team’s Jeff Robert and Larry Johnson, responsible for the technical and business modeling, are now assessing successful grain-ethanol operations to determine which are most compatible with the Inbicon process. According Inbicon vice-president Michael Persson, in America for the conference, next steps will include detail engineering of two Inbicon Biomass Refineries, with groundbreaking to follow soon after. “It’s an exciting time to launch a new idea,” he says. “Thomas Corle and his G-team have been through this before. They helped build America’s highly successful first-generation ethanol business. And now they’re together again and working with us to build the next generation..more
General Wesley Clark Named as Growth Energy Co-Chairman Growth Energy named distinguished four-star retired General Wesley Clark as the organization's co-chairman today, February 5, 2009 at a press conference held in Washington, D.C. General Clark will share his vision for green-collar job creation in an energy independent America...more
Lallemand Ethanol Technology would like to announce the hiring of two new regional sales managers within our team.
Carl Gandolfo - Eastern Regional Sales Manager, Carl comes to Lallemand Ethanol Technology with over 30 years sales experience both in the Automotive Aftermarket and the Security Industry. For the last 13 years, Carl has been the National Sales Manager for Code Blue Corporation and ICOP Digital, Inc.
Educated at St. Louis University and Tarkio College, Carl has a Bachelor of Arts in Criminal Justice Administration and spent 10 years as a St. Louis County police officer prior to entering sales.
Carl has three honorable discharges, two from the US Navy and one from the US Air Force and is a Vietnam era veteran. Craig Ammann - Western Regional Sales Manager,
Craig comes to Lallemand Ethanol Technology with over 15 years of sales and marketing experience. He was most recently with a major biofuels project management and engineering company emphasizing the development of cellulose ethanol production and optimization of existing ethanol production facilities...more
CME Group, the world's largest and most diverse derivatives exchange, announced today that legacy Chicago Board of Trade (CBOT) ethanol swaps contracts will be available on CME ClearPort®, the electronic system that extends the benefits of centralized clearing to over-the-counter (OTC) products, scheduled to begin on January 25 for trade date January 26. The legacy CBOT calendar and basis ethanol swaps are the first of dozens of new cleared-only OTC contracts expected to be introduced on CME ClearPort this year that will benefit from the safety and security of CME Clearing.
"We are pleased to combine CME Clearing, which virtually eliminates the risk of counterparty credit defaults, with the popular ClearPort system to provide an efficient way for customers to transact bilateral trades," said Bob Ray, CME Group Managing Director International Sales and Equity and Commodity Products. "We look forward to increasing our CME ClearPort swaps offerings as we strive to provide more value-added services to our customers in the OTC, as well as in our listed, markets."
..more
It is with great sorrow we (Lallemand Ethanol Technology) announce that the ethanol and brewing world has lost one of its most significant leaders in recent history. Dave Kelsall, Director of Technical Service for Lallemand Ethanol Technology, died peacefully in his sleep on Dec. 23, 2008. Dave joined Lallemand Ethanol Technology following the company’s acquisition of the Alltech Alcohol Division in 2004. He will be remembered as an entrepreneurial figure in the ethanol industry; a passionate, optimistic person that influenced many in his field. In 2007, Dave was presented the High Octane Award at the International Fuel Ethanol Workshop and Expo – a people’s choice award for his unique commitment to the growth of the ethanol industry. Dave previously served as a Business Planning Manager for Robert Morton DG Limited in Burton-on-Trent England and developed a business plan for the international engineering company to design and manufacture breweries worldwide. From 1973-79, Dave was the Assistant Secretary General of the European Brewers Society and represented the Brewing Industry in Brussels. Dave was also Brewmaster for G Heileman Brewing Company of LaCrosse, Wis., from 1981-83. Dave received a special honors degree at London University (1965-68) in Chemistry. He was awarded his Masters degree in Malting and Brewing Science at the British School of Malting and Brewing in 1971. We will celebrate Dave’s life at a celebration dinner in LaCrosse, WI on January 31, 2009 from 4-8 p.m. at the LaCrosse Center. Details for the event are forthcoming, but please RSVP by contacting customerservice@ethanoltech.com with your name and contact information. Please go to the Lallemand Ethanol Technology web site for more informtion...more
Data released by the U.S. Department of Labor showed a 1.7 percent decline in the Consumer Price Index in November, which is the largest decrease since 1932. Despite steep decreases in things like energy and transporation, food prices continued to increase. In response, Growth Energy released the following statement:...more
Over the last three decades, the Brazilian sugarcane industry has been the target of heavy investments in science and technology from both the public and private sectors. Today, sugarcane is the basic feedstock not only for sugar, but for an impressive and growing variety of added value products, particularly the ethanol that fuels an increasing percentage of Brazilian automobiles and helps to reduce the dominant position held by fossil fuels in our society.
Now, sugarcane is about to embark on a new leap forward, this time to offer the world a dual source of clean and renewable energy. Reaching beyond sugar and ethanol, cane is already supplying electricity in Brazil, at a time when it is urgently needed to guarantee momentum for economic growth...more
The USDA’s December 11 reports of world supply and demand prospects were generally viewed as negative for corn prices. Corn prices, however, increased by more than $.40 following the release of those reports. For the current marketing year, the USDA increased the estimated size of the Chinese corn crop by nearly 160 million bushels. The projection of marketing year exports of Chinese corn was not increased, but some believe China will export more than the 20 million bushels currently projected by the USDA. Year ending stocks of corn outside of the U.S. are now expected to about equal the stocks on hand at the beginning of the year. For the U.S., the USDA lowered the projection of corn use for ethanol production by 300 million bushels, reflecting lower gasoline prices and tighter processing margins. Ethanol production may not exceed the mandated level in 2009. In addition, the forecast of marketing year exports was reduced by 100 million bushels as a result of the slow start to exports this year and the larger supplies of grain in the rest of the world. The reductions were only partly offset by an increase of 50 million bushels in projected feed and residual use of corn. That increase reflected prospects for reduced supplies of distillers’ grain from the ethanol industry. The first indication of the rate of feed and residual use will come from the estimate of December 1 inventories to be released on January 12, 2009...more
A decision by Brazil's trade promotion agency, APEXBrasil,
to sponsor the top ethanol-powered auto racing category, the Indy Racing League (IRL),
contributes to consolidate ethanol as a global commodity and is in the spirit of a Memorandum of
Understanding on biofuels signed between the governments of Brazil and the United States in
2007.
According to the president of the Brazilian Sugarcane Industry Association (UNICA), Marcos
Sawaya Jank, the deal strengthens a natural partnership between Brazil and the United States, the
world's top producers and consumers of ethanol. Together, the two countries account for more
than 75% of global ethanol production. "This will help ethanol to attain global energy
commodity status as well as fulfill its vital objectives: to help provide energy security and reduce
greenhouse gas emissions," he added...more
The OPEC Reference Basket continued to fall in October. The financial crisis dominated market sentiment as the economic slowdown dented petroleum demand growth. Uncertainty about bailout plans in the US while the turmoil spread worldwide signaled fears of a looming recession. Losses on the equity market, despite a move by central banks around the world to safeguard the financial system, highlighted the deteriorating economic sentiment. This was reflected in the equity markets which exhibited sharp volatility, mostly on the downside. In October, the Basket averaged $69.16/b for a drop of $27.69 or nearly 29%, the largest monthly drop ever recorded, to a level last seen in August 2007. The sharp downward trend continued in November, with the price at $49.09/b on 14 November. The forecast for the global economy in 2009 has been revised down 0.4 pp to 2.9% due to the rapidly worsening conditions in the real economy. The Euro-zone entered into technical recession in 3Q08 for the first time since the introduction of the single currency. The US economy contracted by 0.3% in 3Q08 and is expected to exhibit negative growth in the current quarter and possibly beyond. Unemployment in the US rose sharply to 6.5% with more than half a million jobs shed in the last two months alone. Central banks across the globe have moved to lower interest rates. Although money markets have eased, confidence in equity markets in October evaporated and share prices fell sharply. As spillover effects to emerging markets become stronger and commodity prices continue to fall, more countries are being affected. Attention is now turning to the need for fiscal stimulus measures to lessen the depth and reduce the duration of the economic turndown. Coordinated measures to address the crisis were considered in the Washington G-20 Summit. Following downward revisions, US growth in 2009 is now forecast at 0.3%, Euro-zone growth at 0.2% and Japanese growth is expected to turn negative...click here for the full PDF repoprt OPEC - November Oil Market Report
MGP Ingredients, Inc. continues to move forward with strategic initiatives to transform the company into a leading provider of value-added ingredients and world class alcohol products. Consistent with these initiatives, the company today announced plans to consolidate the production of wheat proteins and starches at its facility in Atchison, Kan., effective Nov. 12. This decision will result in the discontinuation of MGPI's protein and starch manufacturing operations in Pekin, Ill. The majority of the Pekin facility's proteins consist of commodity wheat gluten, which principally is sold for use in breads and other bakery products, as well as in certain pet food applications. Likewise, the bulk of starches produced at the Pekin facility generally are classified as commodity ingredients for a variety of prepared foods, as well as bakery products...more
Unfortunately, VeraSun will need to reject some corn contracts for delivery through Dec. 31, 2008 at our Janesville and Welcome, Minn., facilities due to the delayed startups. Other contracts may need to be rejected or renegotiated as we continue to work through them on an individual basis.
The Company has also temporarily ceased receiving corn and processing at certain facilities while we seek to secure additional financing. VeraSun appreciates the loyalty of our corn suppliers and their willingness to continue to work with us through the reorganization process.”...more
VeraSun Energy Corporation has terminated Danny C. Herron, the President and Chief Financial Officer. Bryan D. Meier, formerly the Vice Presidneet of Finance and Chief Accounting Officer will replace Danny Herron. Click on the following link for the Form 8K, dated November 14, 2008; VeraSun, 8K, November 14, 2008
Total corn use for 2008/09 is decreased from last month as projected exports are lowered 50 million bushels to 1.9 billion. Other uses of corn are unchanged. Lower exports increase ending stocks to 1.,124 billion bushels, up 36 million from last month. Higher projected ending stocks, larger foreign grain supplies, and continued declines in cash and futures prices are reducing prospects for 2008/09 prices received by producers. The projected farm price is lowered on both ends of the range to $4.00-$4.80 per bushel, compared with the record $4.20 in 2007/08...click on link below for the full report (PDF)
USDA - Feed Outlook, November 13, 2008
Biofuel brokerage firm BiofuelsConnect announced today its expansion into the Dried Distiller’s Grain markets.
The Florida-based brokerage firm has hired James Holzer, an agriculture commodity veteran, to create an Over-the-Counter market in DDGS.. "This new BiofuelsConnect desk will compliment the firm’s existing ethanol and biodiesel brokerage. The DDGS market has great price variation and is need of better price discovery. We are confident that our approach to brokerage in ethanol and bio-diesel will greatly aid this market as it matures and becomes more liquid.” ...more
ARCHER DANIELS MIDLAND REPORTS RECORD FIRST QUARTER RESULT
Company’s strong financial condition, global network enhance ability to act on opportunities
Archer Daniels Midland Company (NYSE: ADM) today announced record quarterly net earnings of
$ 1.05 billion for the quarter ended September 30, 2008, up 138 % from the period a year ago. Net sales increased 65 % to $ 21.16 billion.
“This record quarter again demonstrates the ability of our people to utilize our integrated global network and financial strength to capitalize on opportunities and further affirms our business model and strategy,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “Our strong balance sheet and credit rating provide us with the flexibility to access the most cost-efficient credit markets. Our market acumen coupled with this financial strength enables us to recognize and promptly act upon opportunities when they arise...more
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, announced today that it had received commitments for up to $215 million in debtor in possession (DIP) financing from certain holders of VeraSun’s 9 7/8% senior secured notes due 2012 and groups of lenders led by AgStar Financial Services. At today's "first day" hearing, the U.S. Bankruptcy Court entered an interim order allowing VeraSun and its affiliates to borrow up to $40 million from these DIP facilities and authorized the use of cash collateral to enable VeraSun to operate its business. VeraSun is also in negotiations with its other lenders and expects to receive, when combined with commitments received from the 2012 noteholders and AgStar lenders, aggregate DIP financing commitments totaling $250 million...more
Corn Production Down Slightly from September. Soybean Production Up Slightly. Cotton Production Down 1 Percen.t Orange Production Down 10 Percent from Last Season. Corn production is forecast at 12.0 billion bushels, down slightly from the September forecast and 8 percent below 2007. Based on conditions as of October 1, yields are expected to average 153.9 bushels per acre, up 1.6 bushels from September and 2.8 bushels above last year. If realized, this will be the second highest yield on record, behind 2004, and production will be the second largest, behind last year. Yield forecasts are lower than last month across the Ohio and Tennessee Valleys and eastern Corn Belt as dry conditions during September continued to adversely affect the...more
BNSF Railway Co. today announced that it will begin delivering unit trains to Musket Corporation's newest ethanol storage terminal on November 1, 2008. With storage capacity of 10 million gallons, the Dallas/Fort Worth Musket Ethanol Terminal is one of the area's largest ethanol storage facilities and is designed to meet the daily needs of the Dallas/Fort Worth Metroplex. Located in the Mark IV industrial area in North Fort Worth, the facility maintains its own rail spur and is designed to completely unload a unit train of 95 cars every 24 hours. Tank cars are drained via an underground piping system and ethanol is pumped directly into the four storage tanks. The ethanol can then be pumped directly into trucks for local distribution...more
Governor Ritter, Mayor Hickenlooper, Federico Pena Will Tour Range Fuels, Monday, October 13, 2008...more
Corn and soybean prices have dropped sharply over the past two weeks, continuing the slide from the early summer peaks. The decline in December 2008 corn futures now exceeds $3.60 and the drop in November 2008 soybean futures is nearly $7.00. Some of the recent decline reflects the larger supplies revealed in the USDA’s September Grain Stocks report. That report revealed September 1, 2008 inventories of soybeans of 205 million bushels. That is about 55 million more than expected after the release of the Census Bureau estimate showing August 2008 crush about 15 million bushels lower than expected. The large year ending inventory resulted in a 91 million bushel increase in the estimated size of the 2007 crop. The increase reflected more acres and higher yields than earlier estimated. It has been clear since January 2008 that the size of the crop had been underestimated as “residual” use of soybeans revealed in the quarterly stocks estimate has been extremely small...more
DTN Webinar
WHAT WILL A NEW PRESIDENT MEAN FOR ETHANOL POLICY?
One candidate favors government support for ethanol. The other opposes it. But whoever wins, what happens to ethanol policy could deviate somewhat from the new president’s campaign platform.
October 22, 2008, 2:30pm Central Standard Time...more
CEO Neil Koehler will present at Oppenheimer's 3rd Annual Industrials Conference Oct. 2, 2008 at 10:15 AM Pacific/1:15 PM Eastern. Click Here For Webcast
USDA Crop Bulletin (September 30, 2008) Corn: Rain fell in the northeast Corn Belt, accumulating up to 3 inches for
the week in some areas. Elsewhere, conditions remained dry and favorable for
harvest activities. Temperatures across the region ranged from up to 75
degrees Fahrenheit in the southwestern areas down to 60 degrees elsewhere.
Ninety-six percent of the acreage reached or exceeded the dent stage by
week's end, 3 points behind last year and 2 points behind the 5-year average.
Meanwhile, 52 percent of the corn acreage developed to maturity by week's
end, 36 points behind last year and 27 points behind the 5-year average.
Acreage in the central Corn Belt was lagging between 30 and 40 points behind
in most States. Nine percent of the crop was harvested, 20 points behind
last year and 12 points behind the 5-year average. Major delays were evident
in Illinois and Kansas, where harvest was 28 points behind, and in Missouri,
where harvest was 43 points behind the 5-year average harvest pace.
Condition of the crop was rated 61 percent good to excellent, a 2-point
improvement from the previous week's rating...more
Click here for the Archer Daniels Midland 2008 Annual Report, PDF (5MB) ADM 2008 Annual Report
View Second Quarter 2008 Conference Call Slideshow
Colonial Pipeline today achieved the same flow-rates for gasoline deliveries as the pipeline managed before Hurricanes Gustav and Ike hit the Gulf Coast refining region earlier this month. After each of the hurricanes, Colonial’s pipeline quickly returned to full capability. However, supply shortages nonetheless occurred as a result of damage and shutdowns suffered by Louisiana and Texas oil refineries impacted by the hurricanes...more
In July 2008, after corn prices increased from the $6.00 per bushel range all the way up $8.00 due to extreme weather conditions in the Corn Belt, VeraSun exited their short financial positions with corn due to unacceptable margin exposure with their futures positions. Thereafter, they priced their corresponding physical purchase of corn at the then current market price, which has now proved to be significantly higher than today cash prices.
Additionally, based on the assumption that corn prices would continue to increase, VeraSun entered into accumulator contracts for corn which allowed them to purchase a set amount of corn at below the prevailing market prices at the time, but also required them to purchase the same volume of corn at one or more lower prices should market prices decline to or below those lower levels over the duration of the contract. Then, corn declined sharply, falling from around $8.00 to below $5.00 per bushel.
The conditions of the accumulator contract then required VeraSun to purchase additional corn at prices above the then prevailing market prices. The result of all of this, VeraSun projects that their Q3 2008 corn prices will average between $6.75 and $7.00 per bushel. Cash corn has been trading under $5.00 the last two weeks, although prices have rebounded slightly, improving to $5.17 today, September 23, 2008. In the VeraSun Form 8K (Report of Unscheduled Material Events or Corporate Changes), released last week, they quoted that as of August 29th, the prevailing prices for New York Harbor ethanol, the destination for a significant share of VeraSun’s ethanol shipments, averaged between 2.35 and $2.45 per gallon, and further stated that if prices remain at these levels, that they expect that their average ethanol selling price for Q3 2008 to be between $2.45 and $2.55 per gallon.
Furthermore, based on these assumptions, they expect to incur a net loss for Q3 12008 of between $63 million ($0.40 per share) and $103 million ($0.65 per share)...more
Corn and soybean prices continue to be influenced by a wide array of factors, resulting in a very unstable price pattern. Over the past week, December corn futures traded in a range of $.55. In the past seven trading sessions, November soybean futures traded in a range of about $1.20. On a daily basis, prices have been influenced by changes in the value of the U.S. dollar, changes in crude oil prices, export news, weather and production expectations, and developments in the financial markets. In general, a weakening of the U.S. dollar has been viewed as positive for export prospects and therefore for prices of corn and soybeans and a strengthening of the dollar has been viewed as negative for both. Lower crude oil prices are generally viewed as having a negative impact on prices due to the relationship to the price of biofuels and the profitability of biofuels production. Higher crude oil prices, then, are viewed as positive for corn and soybean prices..more
CME Group Inc. (NASDAQ: CME) today announced that it has completed its acquisition of NYMEX Holdings, Inc. (NYSE: NMX). The combined companies will provide customers around the world with access to all major benchmark asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. CME Group Class A common stock will continue to trade on the NASDAQ under the ticker symbol "CME." NYMEX Holdings, Inc. common stock is being delisted and will no longer trade on the NYSE...more
Pacific Ethanol, Inc., the leading West Coast-based marketer and producer of ethanol, today announced its financial results for the quarter ended June 30, 2008.
For the three months ended June 30, 2008, the Company reported net sales of $198.0 million, an increase of $84.2 million, or 74%, compared to $113.8 million for the same period in 2007. This increase in net sales is primarily due to a substantial increase in sales volume, coupled with higher average sales prices. The Company’s sales volume increased by 22.9 million gallons, or 52%, to 66.8 million gallons, compared to 43.9 million gallons for the same period in 2007. The Company’s average sales price of ethanol increased by $0.23 per gallon, or 10%, to $2.55 per gallon compared to an average sales price of $2.32 per gallon in the same period in 2007...more
Archer Daniels Midland reports annual results - Segment operating profit hits new record of $ 3.4 billion.
Net earnings for the year ended June 30, 2008 decreased 17 % to $ 1.8 billion - $ 2.79 per share from $ 2.2 billion - $ 3.30 per share. Net earnings for the year ended June 30, 2007 include after-tax gains on asset sales of $ 665 million - $ 1.01 per share. Net sales and other operating income for the year ended June 30, 2008 increased 59 % to $ 69.8 billion from $ 44.0 billion last year due principally to higher average selling prices resulting primarily from increases in underlying commodity costs. “ADM’s 2008 results demonstrate the ability of our people to leverage our global assets against an exceptional set of opportunities” said Patricia Woertz, Chairman and CEO. “We had an outstanding year, highlighted by record segment operating profit. ADM met the needs of food, feed, fuel and industrial customers even as strong demand for crops and commodities challenged the global supply chain.”...more
POET, the world’s largest ethanol producer, praised the Environmental Protection Agency (EPA) for their objective ruling on the Renewable Fuel Standard (RFS). "For months, special interest groups seeking to defend the energy status quo have attempted to lay all of the blame for rising food costs at the feet of the ethanol industry," said Rob Skjonsberg, Vice President of Government Affairs for POET. "But the fact of the matter is that virtually every independent study has shown that ethanol’s impact on food prices is minimal while its impact on lowering gas prices is substantial. We applaud the EPA for their objective conclusion. A strong renewable energy policy will continue to bolster the U.S. economy and enhance our national security...more
The Industrial Ethanol Association (IEA) is pleased to announce the recent appointment of Pascale Rouhier as Secretary General. Pascale Rouhier has six years’ experience in international trade, including previously representing trade associations in agriculture and commodities as Secretary General. IEA’s members are synthetic ethanol producers INEOS, PetroSA Europe, and Sasol Solvents Germany. Its objective is to represent the interests of this sector to policymakers and other stakeholders in order to promote fair competition and maintain a healthy European ethanol market. Synthetic ethanol is produced from fossil fuels and is used in the industrial market, mainly for pharmaceuticals, cosmetics, inks and industrial chemical products...more
United States 2008/09 corn ending stocks are projected higher this month as higher carryin and reductions in food, seed, and industrial use more than offset lower production and higher feed and residual use. Harvested area is raised 100,000 acres based on the June 30 Acreage report. Production, however, is projected 20 million bushels lower at 11.715 billion as the projected yield is lowered 0.5 bushels per acre. As indicated in the Acreage report, heavy June rains and flooding reduced the share of harvested area in the higher- yielding Corn Belt states. Feed and residual use for 2008/09 is raised 50 million bushels based on higher expected pork and poultry production in the first half of the 2008/09 marketing year. Food, seed, and industrial use is lowered 65 million bushels, in line with changes to the 2007/08 marketing year. Ending stocks are projected 160 million bushels higher at 833 million. The 2008/09 marketing year average price received by producers is projected at $5.50 to $6.50 per bushel, up 20 cents on each end of the range. The tighter balance sheet for soybeans and higher soybean prices are expected to drive competition for 2009 acreage keeping cash and futures corn prices relatively strong, but below recent record levels. Ending stocks for 2007/08 are projected 165 million bushels higher with food, seed, and industrial use lowered 65 million bushels and feed and residual use lowered 100 million bushels. Ethanol corn use for 2007/08 is lowered 50 million bushels based on reported delays in plant startups and construction, as well as lower expected plant capacity utilization as indicated by the most recent ethanol production data...more
VeraSun Energy Corp. (NYSE: VSE), one of the nation’s largest ethanol producers, announced today that Gordon Ommen has resigned as the Company’s Chairman. Duane Gilliam will assume the role of Chairman of the Board of Directors. He joined the board in 2005 and currently serves as Chairman of the Compensation Committee of the Board of Directors. “I understand and respect Gordon’s decision to step down from the Board to focus on other business opportunities,” said Don Endres, VeraSun’s founder and chief executive officer. “He has helped both teams transition following the merger and provided valuable, thoughtful leadership to the Board. We wish him much success with his future ventures.”...more
USDA Weekly Weather and Crop Bulletin - Highlights: Growing conditions took a turn for the worse in the Midwest, despite a marked warming trend. Weekly rainfall totaled at least 4 inches, with isolated totals of 8 inches or more, from the middle Missouri Valley into southern Wisconsin and from central Illinois into the middle Ohio Valley. The torrential Midwestern rain caused widespread river and lowland flooding, halted planting and replanting operations, and washed out some fields. However, Midwestern crops that escaped flooding were aided by the season's first heat wave, which boosted weekly temperatures as much as 5 to 10 degrees F above normal in the southern and eastern Corn Belt. Hot weather also developed elsewhere across the southeastern half of the nation, but chilly conditions persisted across the northern Plains and much of the West...more
Cool weather plagued the Midwestern and Northeastern States, holding weekly temperatures 4 to 12 degrees F below normal and limiting summer crop emergence and development. In addition, showers hampered fieldwork across the southern half of the Corn Belt, but mostly dry weather favored corn and soybean planting in the Great Lakes region. Farther west, heavy rain pounded the northern and central Plains, with at least 4 inches reported in many locations from Montana to Kansas. Although rain generally aided the Plains' winter wheat and emerged summer crops, thunderstorms produced local damage due to large hail, high winds, and isolated tornadoes.
In fact, more than 100 tornadoes struck the central Plains on May 22-23, according to preliminary reports, followed by approximately 50 tornadoes from the southern High Plains into the upper Midwest on May 25. Meanwhile, warm weather promoted rapid crop development across the South, although showers- mainly from the Delta to the southern Atlantic Coast-caused some delays in cotton and peanut planting and other late-spring fieldwork. In southern Florida, however, rain aided wildfire containment efforts. Heat was especially notable in Texas, where temperatures mostly ranged from 4 to 8 degrees F above normal. In contrast, chilly weather returned to the West, accompanied by widespread rain and snow. Precipitation was particularly heavy in the northern Rockies, while showers across the interior Northwest aided winter grains and spring-sown crops. On May 22-23, snow was reported as far south as Arizona, where Flagstaff received 5 inches...more
Congress (Senate and House) passed the $290 billion farm bill Thursday.
President Bush had vetoed the legislation earlier in the week. However, a clerical error will keep the bill from going into effect.
The Senate voted 82-13 to override the President's veto, and the House voted 316-108 to override the veto. Both override votes exceeded the two-thirds majority required by the Constitution.
Adding drama with the passage is the fact that a portion of the bill is in legal limbo. Before the House override vote, they determined that the version sent to the White House last week was missing a part, and the President vetoed the bill without the missing section. The missing section, "Title III," pertains to authorized trade and food aid has raised questions regarding the veto and the override.
Key biofuels sections, which are now law, include:
Reauthorizes the federal procurement of biobased products program: The program requires federal agencies to purchase biobased products whenever possible. The program also requires USDA to develop guidelines for biobased products and issue a label for products that meet these guidelines. Provides up to $9 million in mandatory funding for the testing and labeling of biobased products.
Biorefinery Assistance: The bill provides $75 million for fiscal year
2009 and $245 million for fiscal year 2010 for loan guarantees to assist with the development of advanced biorefineries and biofuel production plants.
Biomass Research and Development: The conference agreement requires the Secretary of Agriculture and the Secretary of Energy to award competitive grants, contracts, and financial assistance to carry out research and development into biofuels and biobased products and technologies. There is $118 million in mandatory funding for this program.
Biomass Crop Assistance Program (BCAP): The BCAP is a new program that provides incentives for producers to establish and grow cellulosic energy crops.
CCC Bioenergy Program: Makes adjustments to the CCC Bioenergy Program to provide incentives for increased use of agriculture commodities (except
corn) and agriculture and forestry waste for the expanded production of advanced biofuels. Provides $300 in mandatory funding over the life of the bill.
Sugar for Ethanol and other Biofuel Producers: The bill requires the Secretary to purchase sugar for resale to ethanol or other biofuels producers if the sugar supply was in excess and would otherwise be forfeited to the Commodity Credit Corporation.
Cellulosic Biofuels Credit: The Conference Report creates a tax credit (up to $1.01 per gallon) for the production of cellulosic biofuels.
Cellulosic biofuels can be derived from numerous substances, including switchgrass, woodchips, and agricultural waste. The tax credit expires December 31, 2012. The provision is estimated to cost $403 million over fiscal years 2008-2018. This is a key piece of legislation that will promote, support and encourage cellulosic ethanol investment in the United States.
Reduction of the Ethanol Tax Credit: The Conference Report reduces the ethanol tax credit from 51 cents per gallon to 45 cents per gallon starting in January 2009. This reduction will be delayed if the Treasury Department determines that U.S. production and importation of ethanol totaled less than 7.5 billion gallons in 2008.
Ethanol Tariff: The Conference Report extends the $0.54 per gallon tariff on imported ethanol through December 31, 2010. This provision is estimated to increase revenues $70 million from fiscal year 2008-2018.
Caribbean Basin Initiative: The Conference Report extends the Caribbean Basin Initiative (CBI) through September 30, 2010. These trade preferences, which are currently set to expire in September 2008, apply to certain products, including textiles, apparel, and other goods from certain Caribbean nations. Included in the CBI is the ethanol. The trade programs known collectively as the Caribbean Basin Initiative (CBI) were established in 1984, and remain a vital element in the United States’
economic relations with its neighbors in Central America and the Caribbean. The program was established to provide the economic development and export diversification of the Caribbean Basin economies.
The initial legislative program was Caribbean Basin Economic Recovery Act (CBERA), and was thereafter substantially expanded in 2000, with United Sates and Caribbean Basin Trade Partnership Act (CBTPA). The CBI currently provides 27 beneficiary countries with duty-free access to the U.S. market for most goods, including ethanol. Basically, the Initiative allows up to 7% of the United States fuel ethanol demand to be imported from CBI Countries, duty free. There is not a limit on the total volume, just the percentage of United States usage. To qualify for duty free status, the ethanol must be dehydrated in the respective CBI Countries.
The current typical source of hydrous ethanol is Brazil, although it can be sourced from any region in the World.
USDA OFFICIALS BRIEFING WITH REPORTERS ON THE CASE FOR FOOD AND FUEL. We think the time has come for USDA to join in the public conversation about the relationship between food prices and biofuels. We want to offer our perspective on what is happening in the marketplace, to share our data, and the analysis of what is happening. That's why I am joined today by Deputy Secretary Chuck Conner; Joe Glauber, our chief economist; Tom Dorr under secretary for Rural Development; and Dr. Gale Buchanan, the under secretary for Research, Education and Economics...more
For the quarter ended March 31, 2008, Pacific Ethanol reported net sales of $161.5 million, an increase of $62.3 million, or 63%, compared to $99.2 million for the same period in 2007. This increase in net sales is primarily due to a substantial increase in sales volume, which was partially offset by lower average sales prices. The Company’s sales volume increased by 21.7 million gallons, or 58%, to 59.2 million gallons, compared to 37.5 million gallons for the same period in 2007. The Company’s average sales price of ethanol decreased by $0.04 per gallon, or 2%, to $2.30 per gallon compared to an average sales price of $2.34 per gallon in the first quarter of 2007...more
VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced its financial results for the three months ended March 31, 2008. The Company increased revenues by 257% from the first quarter of 2007, to $516.5 million and generated earnings of $0.08 per diluted share. EBITDA for Q1 2008 increased to $32.3 million, or 6.3% of revenues, as compared to $3.8 million, or 2.6% of revenues for Q1 2007. "VeraSun continues to execute on its long-term growth strategy with significantly higher production, resulting in increased revenues and earnings," said VeraSun CEO Donald L. Endres. "Our team also successfully commissioned VeraSun's production facility at Bloomingburg, Ohio during the quarter, adding another 110 million gallons of production capacity...more
Pacific Ethanol, last week announced the delay of the release of their first quarter earnings by one week, and the filing of its regulatory report for the quarter with the Securities and Exchange Commission also will be delayed. The Pacific Ethanol earnings report, which was originally scheduled for Monday, May 12, will now be released on Monday, May 19, 2008. They did not give any reasons for the delay: Dial In Conferencing Details for the Pacific Ethanol Earnings Report
Start Time: 5/19/08, 7AM Pacific, 10AM Eastern
Dial In Number: 866-356-4279. International Dial In: 617-597-5394
Passcode: 64712247
The EPA just announced that the Administrator has received a request from the Governor of Texas, dated April 25, 2008, to waive a portion of the renewable fuel standard under section 211(o)(7) of the Clean Air Act. The Administrator is required by the Act to grant or deny this request within 90 days of receipt. They are providing notice that a waiver request has been received and are seeking public comment on whether to grant or deny it. Additional information available on the EPA website at http://www.epa.gov/otaq/renewablefuels/index.htm
The United States House passed the Food and Energy Security Act of 2007(H.R. 2419), commonly known as the Farm Bill, which is a $290 billion bill, with higher/increased subsidies for farmers and food stamps for the poor amid rising grocery prices while sprinkling in pet projects that lawmakers can take home to voters this election year. The 318-106 vote for the five-year bill gave supporters 28 more than they need to override a promised veto from President Bush. President Bush is on record stating that the bill is too expensive and generous to farmers, who are now enjoying record earnings. On Thursday, the United States Senate passed the bill as well, also with a veto proof margin of 81-15. The House passed the bill, 318-106, on Wednesday. To override a veto, each chamber must call a new vote and pass the bill by a two-thirds majority. The President has threatened to veto the measure, and he will get his chance as it is now on his desk but it appears that an override is eminent. President Bush feels that bill subsidizes multimillionaire farmers while Americans face higher food prices. The White House says the bill has $10 billion in hidden spending and rather than embrace reform, increases subsidy rates for wheat and soybeans...more or Click here for an Executive Summary of the entire bill
ADM reported Q3 financial results, and advised that net sales and other operating income increased 64 % to $ 18.7 billion, Q3 segment operating profit increased 54 % to $ 913 million from $ 593 million last year. for the quarter ended March 31, 2008. Selling prices increased due principally to sharp rises in commodity prices.
Oilseeds Processing operating profit increased as global demand for protein and oil improved.
Corn Processing operating profit decreased due principally to higher net corn costs.
Agricultural Services operating profit increased as highly volatile market conditions provided exceptional merchandising opportunities.
Other segment operating profit increased due to improved margins and increased financial services income. Net sales and other operating income increased 64 % to $ 18.7 billion for the quarter and 51 % or $ 16.2 billion for the nine months. Increased selling prices resulting primarily from sharp rises in commodity prices accounted for approximately 85 % of the increase while higher sales volumes, principally vegetable oil and meal, feed grains and wheat, accounted for the remaining 15 % increase...more
Resonant BioSciences, LLC and Ethanol Technology are proud to announce the introduction of PureMash™ technology as an antibiotic free alternative for the ethanol industry. PureMash™ is a unique chlorine dioxide generation-based system that allows superb microbial control without the use of antibiotics and offers an attractive alternative for those ethanol plants that want to achieve antibiotic residual free DDGS and enhanced fermentation performance...more
Corn producers reported intentions to plant 86.014 million acres of corn in 2008, 7.586 million fewer acres than planted last year and 1.37 million less than expected. The intentions to reduce corn acreage is widespread. Among the large producing states, acreage is expected to increase only in Texas. Intended acreage is down one million acres in Iowa, 800,000 in Indiana, and 600,000 in Illinois. If 86 million acres of corn are planted, acreage harvested for grain might be near 78.7 million. With an optimistic U.S. average yield of 155 bushels, production in 2008 would project to about 12.2 billion bushels. That is 755 million less than the projection of use during the current marketing year. Use is expected to remain at least that large in 2008-09...more
United States corn growers intend to plant 86.0 million acres of corn for all purposes in 2008, down 8 percent from last year when corn planted area was the highest since 1944. Expected acreage is down from last year in most States as favorable prices for other crops, high input costs for corn, and crop rotation considerations are motivating some farmers to plant fewer acres to corn. Despite the decrease, corn acreage is expected to remain at historically high levels as the corn price outlook remains strong due in part to the continued expansion in ethanol production. This was below most industry estimates. Corn on corn requires significantly more fertilizer and ammonia production cost is closely tied to the price of natural gas, and with $9.00 to $10.00 natural gas prices, anhydrous ammonia prices are literally through the roof. Natural gas accounts for approximately 80% of anhydrous ammonia cost, so even with high corn prices, a minor swing to soybeans on corn should not have been that much of a surprise...more
VeraSun Energy Corp. announced March 31, 2008, that it closed the merger with US BioEnergy Corp. after the transaction was approved by a majority vote of shareholders of both companies. The merger will be effective as of April 1, 2008. “We are pleased to complete the merger with US BioEnergy and we are well on our way to integrating our companies,” said VeraSun CEO Don Endres. “We look forward to realizing the synergies of our combined business as we expect to reach 16 biorefineries and an operating capacity of more than 1.6 billion gallons by the end of 2008. The size and scale that results from this merger will allow us to become more relevant to our customers in the petroleum industry and continue to position VeraSun as a premier platform company in the renewable fuels industry...more
NYMEX will launch a New York Harbor Ethanol Futures contract, on March 31, 2008. The contract will be physically delivered, traded on CME Globex and cleared on NYMEX Clearport (Exchange of futures for physical “EFP” available on NYMEX Clearport). The NYMEX New York Harbor Physical Ethanol Futures will be based on delivery at terminals in the harbor...more
The USDA Prospective Plantings report will be released on Monday, March 31, 2008. Expectations for planting intentions seem to be centering around 87 million acres for corn and 71 to 72 million acres for soybeans. That estimate compares to 2007 acreage of 93.6 million and 63.63 million, respectively. Intentions for spring wheat are expected to exceed last year’s seedings. The planting intentions estimate will provide a benchmark for anticipating actual plantings. Recent price changes that include much lower soybean futures and an extremely weak new crop soybean basis have shifted potential profitability significantly in favor of corn over soybeans in much of the midwest. At the same time, generally cool and very wet conditions in some areas may lead to anticipation of corn planting delays and a swing to more soybean acres. While many producers have locked in the planting decisions for most of their acreage, history reveals some significant differences between intentions and actual planted area. Factor in the uncertainty about growing season weather in the northern hemisphere and the ingredients for large price swings are in place...more
Vogelbusch GmbH has applied for a patent for a fermentation process that boosts the efficiency of bioethanol production from raw materials containing hemicellulose. A key feature of the process is an improved strain of microorganism, which delivers high yields in the production of bioethanol from materials that contain hemicellulose, such as wood waste. In the future, this strain will enable bioethanol to be commercially produced from alternative raw materials, thereby improving the CO2 balance of alternative fuels.
Vogelbusch GmbH, which is based in Vienna (Austria), today announced that it has applied for a patent for an efficient fermentation process for the high-yield extraction of bioethanol from materials containing hemicellulose.
Working in partnership with the Institute of Biotechnology and Biochemical Engineering at Graz University of Technology, the company has succeeded in extracting significantly more ethanol from this raw material than other processes...more
VeraSun Energy Corp. (NYSE: VSE), one of the nation's largest ethanol producers, today announced its financial results for the three months and year ended December 31, 2007.
"We are pleased to announce a solid quarter and year," said Don Endres, VeraSun's chairman and CEO. "Fiscal year 2007 included significant milestones for the company as we recorded more than $848 million of revenues in our fifth year of operations. We significantly increased our production capacity while improving operating efficiencies.
"Our operating performance and safety record have been exceptional," Endres added. "In the fourth quarter, we produced 142.1 million gallons and sold 134.4 million gallons of ethanol -- our highest level of output to date with an average production rate of over 105 percent of nameplate capacity for the year. During 2007, we strategically positioned the company to be one of the largest and low cost producers and we remain confident that a strong foundation has been laid for our continued leadership in the biofuels industry." Fourth Quarter 2007 Financial Highlights
Total revenues, which include revenue from the sale of ethanol, distillers grains and VE85(TM), increased by $165.9 million, or 113%, to $312.4 million for the three months ended December 31, 2007 from $146.5 million for the three months ended December 31, 2006. ...more
The 4th National 25x'25 Renewable Energy Summit, "Bringing the Vision to Life: Win-Win Solutions for America's Energy Future," will be held at the Embassy Suites Hotel in Omaha, Nebraska on March 11-13. Listed below are highlights of the event. Hear the latest from leading renewable energy experts from across the nation.
Some of the more than two dozen pre-eminent authorities on biofuels, biomass, wind, solar and other land-based renewable energy sources to address the summit include:
Dr. Steven Chu, Nobel laureate and Director of the Lawrence Berkeley National Laboratory
Dr. Lowell Catlett, a Regents Professor at New Mexico State University and renowned futurist
Charles Zimmerman, Wal-Mart Vice President who oversees sustainable facility development
Nebraska Gov. Dave Heinemann, an early endorser of 25x'25...more
RFA’s Annual Ethanol Industry Outlook Now Available - The Renewable Fuels Association today released its Ethanol Industry Outlook 2008 entitled “Changing the Climate.” The Outlook catalogs the important statistics for America’s domestic ethanol industry while providing the most recent, up-to-date facts about the production and use of fuel ethanol. “2007 was an historical year for ethanol in the U.S. and around the globe,” said RFA President Bob Dinneen. “From landmark energy legislation to unprecedented growth to the rapid development of new technologies, America’s ethanol industry is in the midst of a remarkable evolution. With all the misinformation being passed around about ethanol, the 2008 Ethanol Industry Outlook provides an authoritative source of facts and figures about America’s ethanol industry.”...more
Aventine Renewable Energy Holdings, Inc., a
leading producer, marketer and end-to-end rovider of clean renewable energy, today released its
results for the fourth quarter and full-year ended December 31, 2007.
Ron Miller, Aventine’s President and Chief Executive Officer said, “We continue to successfully
steer our way through a difficult commodity environment as both income and EBITDA turned
positive. While ethanol prices rose during the quarter, they did not increase enough to allow the average price received for ethanol in the fourth quarter to exceed the average for the third quarter.
We were able to offset, however, the lower average ethanol price with lower corn costs for the
quarter. Our fourth quarter corn costs averaged $3.66 per bushel, or $0.15 per bushel less than in
the third quarter. Our co-product returns for the fourth quarter increased to 45.3%, as prices for
germ, meal, DDGS and feed all increased...more
New G-team turns biofuels green into gold.Thomas Corle has a green vision. As the next new things in biofuels emerge, the former Delta-T marketer sees his new G-team racing around the many speed bumps that currently slow down world biofuels development. Corle plans to use his talents in marketing and communications, combined with his knowledge of the biofuels industry and world markets, “to make a difference to the planet.” Launching his new group of biofuels consultants gives him a chance to put it all together for clients “who want a faster track in turning biofuels green into gold.” Corle spent the past decade helping market Delta-T worldwide. Bibb Swain, founder of the Williamsburg, Virginia corporation, says, “Tom’s considerable contributions helped Delta-T to grow to 250 employees with $500 million in annual revenues for 2007.” Once just 32 employees and $2 million in revenues, Delta-T built an international reputation for technological innovation, winning over 150 ethanol and alcohol projects on five continents...more
The Andersons, Inc. and Marathon Oil Corporation jointly announced ethanol production has begun at their 110-million gallon ethanol plant located in Greenville, Ohio. The plant was constructed by The Andersons Marathon Ethanol LLC, a 50/50 joint venture between The Andersons Ethanol Investment LLC, a subsidiary of The Andersons, Inc., and Marathon Petroleum Company LLC, a wholly owned subsidiary of Marathon Oil Corporation. Construction on the facility began in November 2006.
"We are pleased to be opening the third ethanol plant in which we have an investment and for which we are providing management and other services," says Mike Anderson, President and CEO of The Andersons, Inc...more
The USDA's February report of U.S. and world crop supply and consumption prospects confirmed prospects for larger exports and smaller year-ending stocks of U.S. soybeans and wheat. Projections of use and stocks of U.S. corn during the current marketing year were unchanged. The new projections underscore the need for large crops in 2008.
Exports of U.S. wheat during the current marketing year are projected at a 12-year high of 1.2 billion bushels, 25 million larger than the January projection. Expected feed use was reduced by five million bushels, resulting in projected year-ending stocks of 272 million bushels, the smallest inventory in 33 years.
Exports of soybeans during the current marketing year are projected at 1.005 billion bushels, 10 million above the January forecast and only 113 million less than the record exports of last year. Exports for the year are expected to be down 10 percent, but shipments during the first five months of the marketing year are running only about 7 percent behind those of a year ago. In addition, unshipped sales as of January 31, 2008 were 48 million bushels (19 percent) larger than unshipped sales of a year ago. The projection of the domestic soybean crush was increased by five million bushels to a total of 1.835 billion, 1.6 percent larger than last year's record crush. Crush during the first four months of the year was 2.2 percent larger than during the same period last year. Year-ending stocks of U.S. soybeans are projected at only 160 million bushels, or 5.3 percent of projected consumption. As a percentage of use, projected stocks are at the second lowest level in 35 years...more
Jim Damask, Managing Director of BiofuelsConnect, a division of OceanConnect, announced that Mike Garcia and Mike Walker have joined BiofuelsConnect and will be located in the BiofuelsConnect’s Houston office. This new BiofuelsConnect office will support the expansion into the physical markets for Gulf Coast and West Coast ethanol and will complement BiofuelsConnect’s brokerage unit based in Heathrow, Florida which focuses on the Mid Continent and East Coast physical and financial markets. “Mike Garcia and Mike Walker bring great experience and a can-do attitude to our ethanol team. They are a great addition to our BiofuelsConnect team,” said Jim Damask...more
Khosla Ventures today announced the addition of Ford Tamer as operating partner. Tamer is charged with expanding the firm’s support of leading scientific work in clean technology, with a focus on breakthroughs related to mechanical and electrical efficiency, solar and IT. Khosla Ventures’ current portfolio includes investments in biofuels, solar photovoltaic and solar thermal, geothermal, battery, new materials, clean water and other environmentally friendly technologies. Tamer joins Khosla from Broadcom where he led the company’s Enterprise Networking Group...more
VeraSun Energy Corp. and US BioEnergy Corp. announced February 6, 2008, that the corporate offices of the combined company will relocate to Sioux Falls, S.D. The announcement came following a thorough analysis by the senior leadership of both companies. "We recognize the vital role that the Brookings, South Dakota community has provided in supporting the early stage development of these two leading biofuels companies. As we grow and plan for future success, we've evaluated the needs and various scenarios concerning corporate office location," said Don Endres, VeraSun Chairman and CEO. "The primary objectives in determining a final location included the ability to retain and recruit an expanded workforce, the overall cost of doing business, proximity to our growing fleet of ethanol production facilities, access to travel and quality of life for our employees. When we evaluated all of the criteria, Sioux Falls emerged as the best location to meet our business objectives."
Currently VeraSun's corporate offices are located in Brookings, S.D., while US BioEnergy has its corporate headquarters in St. Paul, Minn. The two companies announced plans to merge on Nov. 29, 2007, giving the combined company a potential production capacity of more than 1.6 billion gallons by the end of 2008...more
In a development that could dramatically advance the renewable fuels industry, cellulosic ethanol is now in production at the first small scale waste wood commercial facility operating in the U.S. Located just 1 mile South of Upton, Wyoming, the plant was engineered, constructed and is operated by KL Process Design Group (KL). This is the result of six years of development efforts between KL and the South Dakota School of Mines and Technology.
KL’s cellulosic ethanol plant is converting waste wood into a renewable fuel. “It is now possible to economically convert discarded wood into a clean burning, sustainable alternate motor fuel” said Randy Kramer, president of KL Process Design Group, a design firm that has been working in corn ethanol. “We’re proud of what this small company has accomplished, and believe that our design will be a cornerstone from which we can build our country’s renewable fuel infrastructure providing a better source of motor fuel, starting today.”
Ethanol Promotion and Information Council Launces "Fuel the Change"
Video Contest to Educate Consumers
About
America's Energy Options. Consumers can educate consumers about America’s energy options by participating in the “Fuel the Change” video contest sponsored by the Ethanol Promotion and Information Council (EPIC). Click here for CONTEST RULES Beginning Jan. 28, entrants can submit a :30 second video online. The producer of the winning video will receive a $10,000 cash prize and have the chance to have his or her commercial aired during the 2008 Indianapolis 500 on ABC. “Consumers have a great need for more information about ways they can help to reduce our nation’s dependence on foreign oil sources as well as reduce their impact on global climate change,” said Reece Nanfito, Senior Director of Marketing for EPIC...more
President Bush State of the Union Address: "...To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power. Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases....." Full Text
This agreement will be effective only if it includes commitments by every major economy and gives none a free ride. (Applause.) The United States is committed to strengthening our energy security and confronting global climate change. And the best way to meet these goals is for America to continue leading the way toward the development of cleaner and more energy-efficient technology. (Applause.)
U.S. Department of Energy (DOE) Secretary Samuel W. Bodman today announced that DOE will invest up to $114 million, over four years, (Fiscal Years 2007-2010) for four small-scale biorefinery projects to be located in Commerce City, Colorado; St. Joseph, Missouri; Boardman, Oregon; and Wisconsin Rapids, Wisconsin. Building on President Bush’s goal of making cellulosic ethanol cost-competitive by 2012, these ten-percent of commercial-scale biorefineries will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to bring online full-size, commercial-scale biorefineries. On average, commercial-scale biorefineries input 700 tons of feedstock per day, with an output of approximately 20-30 million gallons a year (MMGY); these small-scale facilities will input approximately 70 tons of feedstock per day, with an estimated 2.5 MMGY
On a daily basis, corn and soybean prices continue to be influenced by a large number of factors. These include the traditional fundamental factors of the rate of consumption and production prospects in various parts of the world. In addition, prices have been impacted by such factors as prospects for crude oil prices and U.S. and global economic prospects. The latter are often referred to as outside markets, but developments in these markets directly impact the potential demand for corn and soybeans...more
Renowned Economist John Urbanchuk to Unveil Economic Impact of Biofuels at Iowa Renewable Fuels Summit. Participants of the Second Annual Event will be the First to Hear Results. Participants from across the country will have the opportunity to hear economist John Urbanchuk discuss his updated economic impact study at the second annual Iowa Renewable Fuels Summit. The Iowa Renewable Fuels Association (IRFA) is hosting the event at the Polk County Convention Center from 1 p.m. to 5:30 p.m. on Jan. 31, 2008...more
Archer Daniels Midland Company (ADM), Bayer CropScience AG and Daimler AG plan to jointly explore the potential for a biodiesel industry based on Jatropha (Jatropha curcas L.). A respective Memorandum of Understanding was signed by the companies. Jatropha, a tropical plant from the Euphorbia family, is seen by the three cooperating partners as a promising alternative energy feedstock for the production of biodiesel. Biodiesel derived from Jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes. It is also characterized by a positive CO2 balance and can thus contribute to protecting the climate.
Last week the United States Senate passed the energy bill with a vote of 86-8, and today the House easily cleared the bill with a 314-100 vote. By this time Wednesday, the bill in all likelihood will be signed into law by President Bush. Last week, the White House stated “The Senate energy plan will update CAFE standards and enhance the use of renewable fuels. By addressing the concerns of the Administration and moving forward with a bipartisan approach, senators have taken steps to improve our economic and energy security. If this legislation makes it to the president's desk, he will sign it into law.”..more
U.S. crop producers made dramatic shifts in acreage in 2007. The shifts were motivated by rising corn-based ethanol production and high corn prices, rising wheat prices, and a surplus of soybeans. The acreage shift was led by a 17 million acre increase in feed grains, including 15.3 million more acres of corn. Winter wheat acreage increased by about 3.1 million and harvested acreage of hay was up by nearly one million acres. These increases were accommodated by an 11.9 million acre decline in soybean plantings, 1.3 million fewer acres of spring wheat, 4.4 million fewer acres of cotton, and about 900,000 fewer acres devoted to other oilseeds; edible beans, peas, and lentils; and sugar beets. In addition to the acreage shifts, total planted acreage (harvested acreage of oats and hay) increased by four million acres. The large increase in total acreage likely includes some pasture acreage converted to row crops and perhaps an increase in re-planted acreage stemming from the spring freeze that damaged the winter wheat crop..more
Corn, soybean, and wheat prices continue to climb as market fundamentals remain generally constructive. Typically, there are both bullish and bearish market fundamental factors and the market must judge the net effect of those factors. Currently, there are few bearish factors to weigh against the combination of strong demand and supply concerns. Futures prices for the 2008 crops of corn, soybeans, and wheat all reached new highs in recent trading sessions...more
EIA Short Term Energy Forecast - Global oil markets will likely remain tight through the forecast period. EIA projects that world oil demand will grow much faster than oil supply outside of the Organization of Petroleum Exporting Countries (OPEC), leaving OPEC and inventories to offset the resultant upward pressure on prices. However, at last week’s meeting in Abu Dhabi, OPEC decided to maintain its existing production quotas, noting that, in its view, the global oil market continued to be well supplied. Additional factors contributing to expectations that prices will remain high and volatile through 2008 include ongoing geopolitical risks, Organization for Economic Cooperation and Development (OECD) inventory tightness, and worldwide refining bottlenecks...more
The USDA's October Crop Production report confirmed prospects for a small 2007 U.S. soybean harvest. The crop is forecast at 2.598 billion bushels. 590 million smaller than the record crop of 2006. Even with large stocks of old crop soybeans on hand at the beginning of this year, the small crop means that consumption of U.S. soybeans will have to decline by more than 100 million bushels during the current marketing year. That decline is expected to occur in the export market, as large South American supplies will...more
NYMEX and Other Major Market Participants to Form The Green Exchange™,
The World’s Most Comprehensive Environmental Marketplace
NYMEX Leads Venture with Evolution Markets, Morgan Stanley, Credit Suisse,
JPMorgan, Merrill Lynch, Tudor Investment Corp., ICAP, and Constellation Energy
New Exchange Will Offer Contracts for Carbon, Renewable Energy, and Other
Major Environmental Commodities...more
MGP Ingredients announces first quarter fiscal 2008 financial results. MGP Ingredients, Inc. (Nasdaq/MGPI) today reported a net loss of $318,000, or $0.02 in diluted earnings per share, for the first quarter of fiscal 2008, which ended September 30, 2007. This compares with net income of $7.0 million, or $0.41 in diluted earnings per share, for the first quarter of fiscal 2007. Total sales in the first quarter of fiscal 2008 were $88.0 million, an increase of 3.5 percent from first quarter sales a year ago....more
According to CEPEA, Ethanol Hydrated trades enlarged 90.3 percent in one year In November, Brazilian ethanol market moved at a better pace, due to the higher demand...more According to the Cepea, the volume traded of hydrated increased 90.3 percent compared to November last year; for anhydrous, the raise was of 9.7 percent. Domestic prices, in turn, moved up expressively in the last month. The CEPEA/ESALQ Index (Sao Paulo state) for anhydrous upped 22.3 percent over October, averaging 0.71609 real or 0.40457 dollar per liter (excluding taxes). The hydrated increased 19.3 percent, to 0.79290 real or 0.44796 dollar per liter (excluding taxes).
VeraSun Energy Corp. (NYSE: VSE) and US BioEnergy Corp. (NASDAQ: USBE) today announced they have entered into a definitive merger agreement, which has been unanimously approved by the board of directors of each company. The merger is expected to close during the first quarter of 2008, pending shareholder approval, anti-trust regulatory clearance and the completion of other customary conditions...more
Praj successfully commissions British Sugar Bioethanol Plant;
U.K.’s First Bioethanol Plant commissioned..more
US BioEnergy Corporation (NASDAQ:USBE) today announced net income of $11.1 million, or $0.15 per share, for the quarter ended September 30, 2007, compared to $8.3 million, or $0.12 per share, for the second quarter of 2007. Net income for the quarter ended September 30, 2007 included a one-time impairment charge of $2.5 million, related to the company’s third party marketing and services businesses. EBITDA was $24.2 million for the quarter ended September 30, 2007, compared to $21.8 million for the second quarter of 2007...more
Range Fuels, Inc. (VinodKhosla in picture above) announced today that it has signed a $76 million Technology Investment Agreement with the U.S. Department of Energy (DOE). Range Fuels’ selection for negotiation of this grant was initially announced in February, 2007 and the organizations have agreed on contract terms to allow project funding. Range Fuels was one of six companies selected by the Department of Energy for financial support in building a commercial cellulosic ethanol plant, and will be the first to break ground with a celebratory event November 6, 2007 at the future site of its Soperton, GA. Plant...more
Praj first half income grows by 50%; Net Profit growth in excess of 100% over corresponding half year...more
Aventine Renewable Energy Holdings, Inc. (NYSE: AVR), a
leading producer, marketer and end-to-end provider of clean renewable energy, today released its
results for the third quarter and nine months ended September 30, 2007.
Ron Miller, Aventine’s President and Chief Executive Officer said, “Ethanol prices fell
significantly beginning in August. This, combined with high corn prices, resulted in a difficult
operating environment. Ethanol has significant value as a motor fuel in today’s scarce energy
marketplace. This value is further enhanced given its huge pricing discount to gasoline, coupled
with the 51 cent tax credit that oil companies and other blenders currently enjoy on blending
ethanol. This large arbitrage is the result of a temporary supply/demand imbalance as a wave of
new ethanol production seeks to find a home in the discretionary conventional gasoline market.
We believe that higher mandated use and increased discretionary blending by refiners and
independent distributors should close this arbitrage and lead to increased margins for ethanol
producers.” ...more
Hawkeye Energy Holdings is pleased to announce that Byron Stewart has accepted the position of Director of Transportation and Logistics Services, effective immediately. Byron has recently served as Hawkeye Gold Director of Marketing and Transportation and this newly formed position leads all corporate transportation functions and business activities. Byron has over 25 years of transportation experience in agriculture and 10 years experience in merchandising...more
Range Fuels will break ground on the nation’s first commercial cellulosic ethanol plant Tuesday, November 6, 2007...more
Aventine Renewable Energy Holdings, Inc., recently announced that it plans to hold a conference call on Wednesday, October 31, 2007 to discuss its third quarter and nine month 2007 results. A news release and supporting financial data will be released to the news wire services and the New York Stock Exchange after the market closes on Tuesday, October 30, 2007...more
US BioEnergy Corporation (NASDAQ:USBE), a leading ethanol producer in the United States, announced today that it will report its third quarter financial results on November 13, 2007 before the market opens and will host a conference call at 10:00 a.m. Central Time...more
VeraSun Energy Corporation (NYSE: VSE), one of the nation’s largest ethanol producers, today announced it will release its third quarter results before the market opens on Thursday, Nov. 15, 2007. The Company will host a live conference call and webcast at 10 a.m. EDT/9 a.m. CDT. Donald L. Endres, Chairman, President and Chief Executive Officer, and Danny C. Herron, Senior Vice President and Chief Financial Officer, will host the call..more
Archer Daniels Midland Company announced that they will release financial results for its first quarter before the market opens on Tuesday, November 6. 2007. The Company will host a conference call and audio Web cast at 8AM Central Time to discuss financial results and provide a Company update...more
Ladd Seaberg announced today that he plans to step down as chief executive officer of MGP Ingredients, Inc. (Nasdaq/MGPI) effective June 30, 2008, but will continue as chairman of the company’s board of directors after that date. He simultaneously announced that he will be succeeded as ceo by Tim Newkirk, current president and chief operating officer of the company...more
The ChemPro Group, LLC, a full-service design-build company specializing in modular process solutions, prefabricated assemblies, and project management, announced that the company has contracted with Golden Triangle Energy of Craig, MO, to design and build a modular distillation dehydration plant for the production of high-quality ethanol from corn-based fermentation feedstock. According to Steve Lavorerio, President of ChemPro, the project is in progress, with equipment fabrication and site preparation underway...more
The Renewable Fuels Association (RFA) offers on October 4th its most sincere thanks and appreciation to Ron Miller, President and CEO of Aventine Renewable Holdings, Inc., for his service as chairman of the RFA.
Aventine is one of the oldest members of the RFA and Miller has held the position of chairman on three different occasions, most recently from 2005-2007. "There are few in today’s ethanol industry more committed to its success than Ron Miller,” said RFA President Bob Dinneen...more
MGP Ingredients, Inc. (Nasdaq/MGPI) today held its annual meeting of stockholders. Three directors, Cloud Cray, Jr., John Speirs, and John Byom, who stood for re-election were approved with their terms expiring in 2010. Chairman and CEO Ladd Seaberg presided over the presentation to stockholders...more
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that it will suspend construction of its 110 million-gallon-per-year ethanol biorefinery in Reynolds, Ind., due to current market conditions. The company expects to resume construction in 2008, depending upon the return of more favorable market conditions...more
POET announced three new general managers to the team. Mark Borer has joined POET as the General Manager for POET Biorefining - Leipsic, Dave Hudak has joined POET as General Manager for POET Biorefining - Alexandria and Dave Gloer has joined the company as General Manager for POET Biorefining - Caro...more
Outlining a plan to elevate Kentucky’s economy, Dr. Pearse Lyons, president and founder of Kentucky-based Alltech, will speak at various locations throughout the state as part of a tour to promote innovation in agriculture. The theme for the tour is 'Vision 2010: Fueling the Future of Rural Kentucky.'...more
ConocoPhillips and Archer Daniels Midland Company(ADM) announced that they have agreed to collaborate on the development of renewable transportation fuels from biomass. The alliance will research and seek to commercialize two components of a next-generation biofuel production process..more
PetroSun, Incorporated announced today that the Company has formed PetroSun BioFuels Refining to participate in a joint venture that will construct and operate a biofuels refinery in Arizona...more
Bunge Limited today announced that Tim Gallagher, Executive Vice President, Bunge North America and Todd Bastean, Vice President & General Manager, Bunge North America Biofuels, will address the Citigroup "Ethanol on the Cob II" biofuels conference in New York City on Tuesday, October 2, 2007...more
North American Bioproducts Corporation (NABC), provider of
fermentation products and technology to the ethanol industry, announces their third bi-annual Ethanol Short
Course. In a continuing effort to develop, educate and train both new and experienced industry colleagues,
NABC will hold the Ethanol Short Course on February 11th -15th, 2008 in Schaumburg, IL. The Renaissance
Hotel and Convention Center will host the five day event...more
Hawkeye Energy Holdings, LLC, one of the largest producers of ethanol in the U.S., is pleased to announce that Martin A. Lyons has joined Hawkeye as Chief Commercial Officer, effective today. Marty has most recently served as Senior Vice President in charge of Archer Daniel Midland’s ethanol, corn processing and sweeteners businesses. Marty has over twenty-eight years of sales, marketing, strategic planning, and regulatory management experience and helped pioneer the fuel ethanol additive business in the energy industry...more
President Bush Announces Resignation of Secretary of Agriculture Mike Johanns Rose Garden - 9:27 A.M. EDT. September 20, 2007 - THE PRESIDENT: Good morning. Mike Johanns has informed me that he plans to return home to Nebraska, which means that his service as Secretary of Agriculture must come to an end. Mike has been an outstanding member of my Cabinet. I knew he would be when I asked him to become the Secretary of Agriculture. I've known him for a long time. I've admired the fact that he is not only a decent person and an honest person, but he's a person who can get some things done...more
Corn production is forecast at a record 13.3 billion bushels, up 254 million from last month, because of higher yields. The forecast yield of 155.8 bushels per acre would be the second highest ever. Sorghum yields are also forecast at a record 73.9 bushels per acre. Sorghum production is forecast at 495 million bushels. Ethanol production forecast was lowered for both 2006/07 and in 2007/08, based on current capacity and reported production. Exports were raised this month to offset lower grains production in other parts of the world. Prices for feed grains remain strong, supported by record wheat and strong soybean prices...more Feed Outlook,
September 14, 2007
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that Mark Dickey has joined the company as Vice President and Assistant General Counsel. All together, Dickey brings more than 20 years of legal experience, including 14 years in private practice...more
US BioEnergy Corporation (NASDAQ:USBE), a leading producer of ethanol in the United States, today announced that it has been selected by NASDAQ as one of 17 companies that will be featured in its new advertising campaign, “NASDAQ and the Companies that Move Life Forward,” that profiles NASDAQ-listed companies and how each of them improve the way we work and live every day...more
VeraSun Energy Corporation (NYSE: VSE), one of the nation’s largest ethanol producers, will hold a VE85™ pump tour promotion, Friday, Sept. 21, at the Freedom Valu Center on East College Drive in Marshall, Minn. VeraSun will sell its branded VE85™, a blend of 85 percent ethanol and 15 percent gasoline, for 85 cents per gallon beginning at 11:30 a.m. CDT. The station is located at 304 East College Drive...more
CME Group, the world's largest and most diverse exchange, today announced the listing of options on Ethanol futures, tools for customers to better manage risk in the energy industry, scheduled to begin trading electronically on e-cbot® October 5 and then on the CME Globex® platform in January...more
Lallemand is proud to announce the appointment of Bill Nankervis as its new General Manager of its Ethanol Technology business unit. Bill comes to Ethanol Technology from Lallemand’s Anchor Yeast subsidiary in South Africa where he was Director of their Bakery Specialties (bakers yeast and baking & milling enzymes) business...more
U.S. Sen. Dick Lugar spoke today at the opening of the POET ethanol plant in (Portland) Jay County and will address the opening tomorrow at the Central Indiana Ethanol Facility in (Marion) Grant County. “Biofuels offer the dual opportunity for an economic revitalization of rural America and a solution to a serious national security problem,” said Lugar, who has been a leading advocate for the use of biofuels to decrease our strategic dependence on foreign oil...more
The USDA now forecasts the 2007 U.S. corn crop at 13.308 billion bushels, 254 million (1.9 percent) larger than the August forecast and 2.773 billion (26.3 percent) larger than the 2006 crop. The larger crop forecast reflects the expectation of a U.S. average yield of 155.8 bushels. That forecast is three bushels above the August forecast and 6.7 bushels above the 2006 average, but 4.6 bushels below the record yield of 2004...more
The New York Mercantile Exchange, Inc.(NYMEX)today announced that it will launch its new alternative energy equity index futures contract on CME Globex and NYMEX ClearPort, beginning on September 30 for trade date October 1, 2007. This contract was previously scheduled to launch on August 20th, but was postponed...more
Archer Daniels Midland (ADM) today announced appointments in the Company's Commercial and Production group which is responsible for ADM's origination, merchandising, processing and marketing functions. John Rice, executive vice president, Commercial and Production, said, "These appointments advance our long-term and incremental business goals. I am confident that these individuals will provide leadership -- on both a personal and organizational level -- that will ensure ADM's continued success."...more
CME Group to Offer Clearing for Ethanol Basis Swaps - CME Group, the world’s largest and most diverse exchange, today announced the introduction of clearing services for over-the-counter (OTC) Ethanol Basis Swaps beginning October 5, enabling the biofuels and other industries to take advantage of the benefits of centralized clearing, including daily mark-to-market margining and reduced counterparty risk...more
US BioEnergy Announces Successful Acquisition of US Bio Marion, LLC (formerly Millennium Ethanol, LLC)...more
Corn Stocks Down 34 Percent from September 2006; Soybean Stocks Up 27 Percent; All Wheat Stocks Down 2 Percent - Corn stocks in all positions on September 1, 2007 totaled
1.30 billion bushels, down 34 percent from September 1, 2006. Of
the total stocks, 460 million bushels are stored on farms, down
39 percent from a year earlier. Off-farm stocks, at 844 million
bushels, are down 31 percent from a year ago. The
June - August 2007 indicated disappearance is 2.23 billion bushels,
compared with 2.39 billion bushels during the same period last
year...more
August 30, 2007, The Renewable Fuel Standard took effect Saturday, September 1, 2007. Companies needing assistance can call the RFS Helpline at (202) 343-9755 during normal business hours. Under the Energy Policy Act of 2005, EPA is responsible for promulgating regulations to ensure that gasoline sold in the United States contains a minimum volume of renewable fuel. A national Renewable Fuel Program (also known as the Renewable Fuel Standard Program, or RFS Program) will increase the volume of renewable fuel required to be blended into gasoline, starting with 4.0 billion gallons in calendar year 2006 and nearly doubling to 7.5 billion gallons by 2012. The RFS program was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders...EPA Web Site
September 1, 2007, is the effective date for the United States Renewable Identification Number
(RIN) registration. Any business that will produce or recieve renewable fuels for the purpose of blending into motor fuel required by law to register each active facility with the Environmental Protection Agency(EPA) prior to any business transactions. Registration information can be found on the... EPA RIN Registration Form
NYMEX issues new margin spread credits for their RBOB contracts vs the new Ethanol contract. THe Ethanol contract started trading July 8, 2007. In short they will allow customers to save 80pct of the margin they normally post by clearing both contracts with NYMEX...more
Range Fuels, Inc., a leading cellulosic ethanol company, announced today that Dan Hannon has joined the company as Chief Financial Officer...more
US BioEnergy Reports Financial Results
for the Second Quarter Ended June 30, 2007...more
US BioEnergy Announces Technology Initiative to Increase Expected Ethanol Production to 780 MGY by the End of 2008...more
Cilion, a new biofuels company, recently announced the appointment of Mark L. Noetzel as its Chief Executive Officer and member of the Board of Directors...more
Upon receiving news of the passing of Jeff Fox, Vice President of Legal and Government Affairs for POET, POET issued the following statement from CEO Jeff Broin...more
Midwest Grain Products Ingredients to announce fiscal Q4 2007 results on August 16, 2007. Interested persons may listen to the conference call via telephone by dialing...more
Pacific Ethanol, Inc. will release its fiscal year 2007 second quarter results, August 8, 2007..more
US BioEnergy to Announce Second Quarter Results...more
The Anderson Reports Record Income, with EPS of $1.40 for Second Quarter. Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth...more
VeraSun Energy Corporation Reports Second Quarter 2007 Financial Results...more
Archer Daniels Midland Reports Record Annual Results...more
Bateman Litwin buys Delta-T,
gains ethanol technology edge, for total consideration of US $45 million in cash and 11.8 million new ordinary shares in Bateman Litwin,. Acquisition of U.S. technology designer positions Dutch company to take global leadership role in new-generation biorefinery production..more
VeraSun and General Motors Bring First E85 Fueling Location To Nation’s Capital...more
Range Fuels awarded permit to construct the
ation’s first commercial cellulosic ethanol plant – groundbreaking to happen this summer...more
KAG Ethanol Logistics enters alliance with Manly Terminal LLC in Iowa..more
Since the crop beginning, Brazilain sugar price drops more than 30%...more
Brazilian Ethanol
Prices are 35% percent lower than in 2006...more
ALCOFINANCE, Brussels, the sister company of ALCOTRA, Geneva, signed a preliminary agreement with EDF (ELECTRICITE DE FRANCE) Energies Nouvelles for a long term strategic partnership in bio-fuels...more
Over the last three decades, the Brazilian sugarcane industry has been the target of heavy investments in science and technology from both the public and private sectors
