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January 31, 2013
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The News Source for the Ethanol Industry

  Top Story 
  • Court ruling does not weaken RFS, legal experts say
    The recent court ruling that vacated the cellulosic portion of the Renewable Fuel Standard's 2012 volumetric targets will not have a major impact on the standard, write Jody M. Endres and A. Bryan Endres, law professors at University of Illinois. Although the court found fault in the Environmental Protection Agency's approach of favoring overestimation of output volumes, "the RFS itself, and EPA's general methodology of establishing both advanced and cellulosic biofuel projections, both survived" the legal challenge, they state. Farmdoc Daily (University of Illinois) (1/30)
  Market Update 
  • U.S. ethanol output fell last week; inventories rose
    U.S. ethanol production dropped to 770,000 barrels per day last week, down 2.8% from the week before and the lowest since the federal government started collecting weekly data in June 2010, the Energy Information Administration said. Supplies of the fuel swelled to 20.5 million barrels, up 2.3% from the previous week and the most in six weeks, the EIA said. Imports dropped sharply to 9,000 barrels per day, compared with 67,000 the week before. Bloomberg Businessweek (1/30) LinkedInFacebookTwitterEmail this Story
  • Ethanol production slumps amid temporary plant closures
    Slumping demand for gasoline, elevated corn prices and increased competition from Brazilian ethanol are pinching profit margins for U.S. ethanol producers, forcing several to reduce or suspend production, analysts said. Thirty-six ethanol plants, representing about 15% of the country's capacity, have suspended operations as Tuesday, the Renewable Fuels Association said. Reuters (1/30) LinkedInFacebookTwitterEmail this Story
  • Biofuels have been good for rural communities, USDA official says
    Iowa's ethanol and biodiesel industries are instrumental in expanding the rural economy, said Dallas Tonsager, U.S. agriculture undersecretary for rural development, during a speech at the annual Iowa Renewable Fuels Summit. Tonsager urged farmers to take advantage of the growing demand for bio-based products. "The challenge for rural America is not to be satisfied with the way things are but to be looking for more opportunities," he said. (1/30) LinkedInFacebookTwitterEmail this Story
  Technology & Trends 
  • IEA: Water use from energy production to double in 25 years
    Within 25 years, the amount of freshwater needed for energy production worldwide will double, led by coal, according to an International Energy Agency report. Another leader in future water consumption is biofuel production, but the industry hopes to change that. "It absolutely has been a major area of focus and research and development for the industry over the past decade. ... Not only is it a matter of sustainability; it's a matter of cost and economics," said Geoff Cooper, vice president of research and analysis for the Renewable Fuels Association. National Geographic News (1/30) LinkedInFacebookTwitterEmail this Story
  • Inbicon, ETH Bioenergia team up to cut cost of cellulosic biofuel
    Denmark's Inbicon signed a deal to work with Brazil's ETH Bioenergia to look for ways to bring down the cost of cellulosic biofuels. "The technology to produce second-generation ethanol has been known for many years. Producing it in a competitive and economically viable way is our big challenge now," said Carlos Eduardo Calmanovici, ETH Bioenergia's director of innovation and technology. Reuters (1/30) LinkedInFacebookTwitterEmail this Story
  Policy Watch 
  • Hagel supports curbing military purchase of biofuels
    Defense secretary nominee Chuck Hagel supports banning the military from buying biofuels that have higher life-cycle emissions than conventional fuels, according to his written submission to the Senate Armed Services Committee. Hagel also said the military should buy large amounts of biofuels only if they don't cost more than conventional fuels. "It is prudent for the Department to engage in tests and demonstrations that confirm defense equipment can operate on a range of fuels; however, ... it should only buy large volumes of these fuels when they are cost-competitive with petroleum products," Hagel wrote. The Hill/E2 Wire blog (1/30) LinkedInFacebookTwitterEmail this Story
  • MCGA's Marshall: Dismantling RFS would push up fuel costs
    Keeping the Renewable Fuel Standard in place is vital for all Americans, said Gary Marshall, CEO of the Missouri Corn Growers Association. Without the RFS, fuel prices at the pump would rise, creating a ripple effect throughout the economy, Marshall said. "Consumers would lose money because their gasoline prices are going up; farmers would lose money, buy fewer trucks, buy fewer automobiles and machinery because they have less income themselves," he said. Brownfield (1/30) LinkedInFacebookTwitterEmail this Story
  Global Agenda 
  • Brazil to raise ethanol blend rate to 25% in May
    The government of Brazil will raise the country's ethanol blend rate from 20% to 25% in May to help state-owned Petrobras reduce losses from costly fuel imports, said Energy Minister Edison Lobao. The announcement came after Petrobras received authorization to raise gasoline prices, a move that is expected to increase demand for ethanol by as much as 1.1 billion gallons per year, said Salim Morsy, an analyst for Bloomberg New Energy Finance. Bloomberg Businessweek (1/30) LinkedInFacebookTwitterEmail this Story
  RFA & Member News 
  • Why You Should Attend the National Ethanol Conference
    The National Ethanol Conference is recognized as the preeminent conference for delivering accurate, timely information on marketing, legislative and regulatory issues facing the ethanol industry. Read why others continue to attend this event year after year. "I've attended the NEC for years, as it's an invaluable opportunity for me and my company to connect with my colleagues and customers, all in one location. Based on the program content and the networking opportunities, we simply cannot afford to miss this conference," said Craig Pilgrim, global marketing and product development manager at Lallemand Ethanol Technology. Learn more and register. LinkedInFacebookTwitterEmail this Story
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