December 15, 2022
BY Erin Krueger
CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.”
CoBank predicts that the ethanol industry will benefit from greater usage of E15, growing demand for corn oil, and strong pricing of carbon dioxide. According to the report, carbon dioxide, a coproduct of ethanol production, is experiencing a demand surge from both industrial users and carbon sequestration projects.
The outlook for other types of biofuel is strong as well. CoBank predicts the momentum behind renewable diesel will continue to grow as new soy crush processing and oil refinement facilities come online, supported by the Inflation Reduction Act of 2022.
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A full copy of the report can be downloaded from the CoBank website.
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CoBank’s latest quarterly research report, released July 10, highlights current uncertainty around the implementation of three biofuel policies, RFS RVOs, small refinery exemptions (SREs) and the 45Z clean fuels production tax credit.
The USDA significantly increased its estimate for 2025-’26 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released July 11. The outlook for soybean production was revised down.
The U.S. Energy Information Administration maintained its forecast for 2025 and 2026 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production in its latest Short-Term Energy Outlook, released July 8.
XCF Global Inc. on July 10 shared its strategic plan to invest close to $1 billion in developing a network of SAF production facilities, expanding its U.S. footprint, and advancing its international growth strategy.
U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.