Lake Area Corn Processors reduces production
April 13, 2020
BY Erin Voegele
Lake Area Corn Processors LLC filed an 8-K with the U.S. Securities and Exchange Commission on April 13 announcing the company plans to reduce ethanol production at its 90 MMgy corn ethanol plant in Wentworth, South Dakota.
In the filing, LACP said it “anticipates materially reducing ethanol production during April 2020” due to current market conditions. According to the company, the reduction may continue for the rest of its second fiscal second quarter. “Market conditions are continually changing and management’s projected production rates may change,” the company said. “If gasoline demand increases in the future it may result in additional ethanol demand which could impact our anticipated production levels in the future.”
Many U.S. ethanol plants have reduced production or idled in recent weeks due to the impacts from the COVID-19 pandemic. Data released by the U.S. Energy Information Administration on April 8 indicates ethanol production fell to an average of 672,000 barrels per day the week ending April 3. That volume is down 330,000 barrels per day when compared to the same week of 2019, and down 407,000 barrels per day when compared production during the final week February 2020.
Advertisement
The EIA currently expects low ethanol production rates to persist for several months. The agency released its latest Short-Term Energy Outlook on April 7, predicting that ethanol production will average 630,000 gallons per day during the second quarter of this year, increasing to 740,000 barrels per day in the third quarter.
Advertisement
Related Stories
Keolis Commuter Services, the Massachusetts Bay Transportation Authority’s operations and maintenance partner for the Commuter Rail, has launched an alternative fuel pilot utilizing renewable diesel for some locomotives.
Virgin Australia and Boeing on May 22 released a report by Pollination on the challenges and opportunities of an International Book and Claim system for sustainable aviation fuel (SAF) accounting.
Chevron U.S.A. Inc. on May 15 filed a notice with the Iowa Workforce Development announcing plans to layoff 70 employees at its Ames, Iowa, location by June 18. The company’s Chevron REG subsidiary is headquartered in Ames.
Luxury North Dakota FBO, Overland Aviation—together with leading independent fuel supplier, Avfuel Corp.— on May 19 announced it accepted a 8,000-gallon delivery of sustainable aviation fuel (SAF) on May 12.
May 21 marks the official launch of the American Alliance for Biomanufacturing (AAB), a new coalition of industry leaders committed to advancing U.S. leadership in biomanufacturing innovation, competitiveness, and resilience.
Upcoming Events
