"USGC's ethanol team and consultants offered an update this week to the Council's Ethanol Advisory Team the member-driven group of grain producers and agribusiness representatives that identify opportunities, set priorities and chart the course of the Council every year, giving them background on ethanol's role in the Paris Agreement -- of which the US is again a member -- explaining what it means to have the U.S. rejoin and presenting an outlook for ethanol as it relates to the Paris Agreement as whole.
"As many countries have listed their transportation sectors and named biofuels or ethanol specifically to contribute to overall emissions reductions outlined in the Paris Agreement, the case can be made for U.S. ethanol to help meet these countries' global initiatives.
"Even with policies in place some countries are not meeting the intended goals or mandates, leaving room for further GHG emissions reductions. India for example has recently announced its national plan to blend 20 pct ethanol nationwide by 2025. In the most recent market year, it blended just above a 5 pct rate from a nationwide average standpoint. Filling in that blend gap will be critical to fully realize these benefits. Identifying these gaps and demonstrating the benefit and how to fill them is an ongoing role the Council provides with its global partners.
"For instance, new research from Environmental Health and Engineering Inc. demonstrates that U.S. corn-based ethanol cuts GHG emissions by 46 pct providing benefits nationally, but also globally, as ethanol trade expands. In terms of emissions reductions, this means the U.S. saved more than 4 million metric tons of carbon dioxide equivalent in 2020 from ethanol exports alone and could provide other countries a pathway to meeting their own Paris Agreement commitments.
“Elevating the contribution that ethanol has already made to abate emissions globally is critical, and these reductions are expected to continue as further investment in abatement technologies take place and policies expand around the globe."
(Source: U.S. Grains Council, PR, Website, Mar., 2021) Contact: US Grains Council, Brian D. Healy, Director Global Ethanol Market Dev, Bryan Jernigan, bjernigan@grains.org, www.grains.org
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About 23 billion litres of ethanol production has been lost in 2020, which has shuttered more than 250 ethanol plants across the globe, according to NCGA. U.S. ethanol production, however, has nearly recovered from the worst of the pandemic and is currently 10 pct lower compared with the levels for Aug. 16, 2019.
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller's dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture's profitability, according to its website. (Source: US Grains Council, UK Reuters, Sept., 2020) Contact: US Grains Council, Brian D. Healy, Director Global Ethanol Market Dev, Bryan Jernigan, bjernigan@grains.org, www.grains.org
More Low-Carbon Energy News US Grains Council, Ethanol,
"The U.S. Grains Council, Growth Energy, the Renewable Fuels Association and the National Corn Growers Association believe the 90-day extension of the TRQ serves neither Brazil's consumers nor the Brazilian government's own decarbonization goals, especially while Brazil's ethanol producers continue to be afforded virtually tariff-free access to the U.S. market. The extension falls during Brazil's annual inter-harvest period when U.S. ethanol exports to Brazil are traditionally low, causing greater uncertainty for U.S. exporters looking to make selling decisions now for the traditionally higher Brazilian demand in the winter months. While the Brazilian ethanol market has not been fully reopened to imports, we appreciate the continued support and efforts of the U.S. government as we use this 90-day period to aggressively pursue an open and mutually beneficial ethanol trading relationship with Brazil.
"The U.S. ethanol industry actively sought, through repeated dialogue with local industry and government, to illustrate the negative impacts of tariffs on Brazilian consumers and the Brazilian government's own decarbonization goals. However, it seems Brazil's government has left its own consumers to pay the price through higher fuel costs once again. While we would have preferred Brazil abandon its ethanol import tariffs entirely and resume its free trade posture on ethanol, which it held for several years before the TRQ, we view its decision to temporarily extend the TRQ on ethanol at the current level as an opportunity to continue discussions toward that end.
"The U.S. ethanol industry remains focused on expanding the global use of low-carbon ethanol, reducing barriers to trade and elevating its prominence in energy discussions. We remain eager to collaborate and cooperate with other nations that share in the vision of a free and open global ethanol market." (Source: U.S. Grains Council Website News, 14 Sept., 2020)
Contact:
USGC, Bryan Jernigan, 202-789-0789, bjernigan@grains.org, www.grains.org; Growth Energy,
Leigh Claffey, lclaffey@growthenergy.org, www.growthenergy.org;
RFA, Ken Colombini, kcolombini@ethanolrfa.org, www.ethanolrfa.org;
NCGA, Liz Friedlander, (202) 326-0644, friedlander@ncga.com, www.ncga.com
More Low-Carbon Energy News Ethanol Tariff, Growth Energy, RFA, NCGA, USGC,
"USDA reported last week that U.S. ethanol exports increased slightly year-over-year to 812 million gallons (288 million bushels in corn equivalent) for the first six months of the marketing year (Sept. 2019-Feb. 2020). "Brazil remained the top export destination at 201 million gallons (71.3 million bushels in corn equivalent), despite a small decline due to the restructuring of Brazil's tariff rate quota (TRQ) and a strengthening U.S. dollar. The EU had a notable 28 pct increase from 2018/2019 imports at 79 million gallons (28 million bushels in corn equivalent).
"These data points were not able to take into account the still-developing impacts of COVID-19 and oil production disputes, which have led to deep decreases in demand for gasoline and shifts in the relationship between oil and ethanol prices.
"Compounding the overall demand decline, the lack of an agreement on crude production between the Organization of the Petroleum Exporting Countries and Russia sent shock waves across global energy markets and is contributing to shortages in a critical component to the industry -- storage.
"To date, U.S. ethanol weekly ending stocks are at a record high, and the United States remains positioned to supply customers globally. (Source: US Grains Council, PR, 13 April, 2020) Contact: US Grains Council,
Brian Healy, Global Ethanol Market Development, (202) 789-0789, (202) 898-0522, www.grains.org
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The coalition took the EPA to court and won over several "hardship" exemptions the EPA granted to small refineries, releasing them from their renewable fuel obligations in 2016 and 2017. The Trump Administration sought and secured an extension of the appeal deadline until Tuesday, March 24, this year.
"With the renewable fuels industry reeling from coronavirus, trade disputes and small refinery exemptions, now is certainly not the time for the Trump administration to take any action that would cause further pain for ethanol producers or the farmers that supply them. The best thing they could do to support our industry and keep ethanol plants open is to announce immediately that they will not appeal," the coalition wrote.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied.Under the U.S. Renewable Fuel Standard, the nation's oil refineries are required to blend billions of gallons of biofuels such as ethanol into the fuel or buy credits from those that do. But the EPA can waive their obligations if they prove compliance would cause them financial distress.
(Source: American Coalition for Ethanol , Various Trade Media, 18 March 2020) Contact: U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org; Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org; American Coalition for Ethanol, Brian Jennings, CEO, (605) 334-3381 ext. 3389, www.ethanol.org
More Low-Carbon Energy News American Coalition for Ethanol, RFS, "Hardship Wiver", Renewable Fuel ,
The Nebraska Ethanol Board serves and advocates for the state's 25 ethanol plants with a combined total capacity of over 2.5 billion gpy of ethanol.
In addition to building consumer support for biofuels and guiding public policy, the Nebraska Ethanol Board helps market growth through targeted strategies and programmes.
(Source: USGC, 26 Feb., 2020) Contact: Nebraska Ethanol Board, Roger Berry, (402) 471-2941, www.ethanol.nebraska.gov; U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org
More Low-Carbon Energy News US Grains Council, Nebraska Ethanol Board,
The coalition's brief noted,
"Even as the Trump Administration indicates it is taking steps to account for future small refinery exemptions, the coalition remains concerned that EPA's abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act. From a substantive and procedural perspective, this is not the way for a federal agency to make such a momentous decision."
(Source: Growth Energy, U.S. Grains Council, and Renewable Fuels Association , 23 Oct., 2019) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org; U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org; Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFS, Growth Energy, U.S. Grains Council, Renewable Fuels Association,
In 2018, American ethanol export totaled over 6.1 billion litres (1611449519.385 gallons) worth roughly $2.7 billion. In total, exports increased by over $330 million year-on-year.
(Source: US Grains Council, Various Media, Biofuels Int'l, 10 Sept., 2019) Contact: U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org
More Low-Carbon Energy News US Grains Council , Ethanol, Ethanol Export,
The Council was awarded just under $14 million from the one-time program, which granted a total of $200 million for organizations working in overseas market development for U.S. agriculture and food products Much of the funding will be used to dramatically expand the Council's ethanol programs, which it coordinates with corn and sorghum checkoff organizations, Growth Energy and the Renewable Fuels Association, as well as USDA.
The funding will build upon existing market development and marketing programs operated with support from Council members and USDA through the Market Access Program and Foreign Market Development program.
(Source: US Grains Council, PR, 23 Feb., 2019) Contact: U.S. Grains Council, (202) 789-0789, (202) 898-0522, www.grains.org
More Low-Carbon Energy News U.S. Grains Council, Ethanol,