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Legislation aims to extend biofuel, bioenergy tax credits

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By Erin Voegele

December 16, 2015

FeedstocksPolicyBusinessOperationsMarketsCoproducts

Federal lawmakers have released the text of a $1.1 trillion spending bill that will fund the U.S. government through October 2016. An accompanying legislative package of tax extenders aims to extend certain bioenergy tax incentives for two years.

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Two U.S. Grains Council members recently traveled to Saudi Arabia to participate in consultations with sophisticated grain buyers and USGC's local consultant, demonstrating the value of distillers dried grains with solubles (DDGS).

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Laurel BioComposite LLC has earned the USDA Certified Biobased Product Label for its Bio-Res PLA with 97 percent biobased content; Bio-Res PE with 62 percent biobased content and Bio-Res powder with 100 percent biobased content.

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The U.S. Patent and Trademark Office recently published a patent application (U.S. 2015/0329449) from the Iowa Corn Promotion Board for a production method using corn in the industrial manufacturing of a raw material called monoethylene glycol (MEG).

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USDA's National Agriculture Statistics Service recently released its December Grain Crushings and Coproducts Production report, noting total corn consumed for alcohol and other uses was 495.8 million bushels in October.

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Green Biologics Ltd. is moving forward with the construction of its 100 percent renewable, biobased n-butanol and acetone manufacturing facility in Little Falls, Minnesota. Commercial operations are scheduled to begin next year.

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Rex American Resources Corp. has released fiscal third quarter financial results, reporting net sales and revenue of $110.6 million for the three-month period ended Oct. 31, down from $138.4 million reported for the same period of last year.

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DDGS prices have settled into a holding pattern. Prices have been steady for the last couple of weeks, and have only recently started to see more domestic demand.

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Ontario Centres of Excellence and the Agricultural Adaptation Council are fostering innovation in the province's growing agri-based industrial bioproducts sector through the $$3 million Agri-Based Industrial Bioproducts R&D Challenge launched Nov. 9.

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On Nov. 24, the Renewable Fuels Association hosted a press call featuring several experts in the field of biofuel life cycle greenhouse gas analysis and agricultural land use. The speakers addressed the flawed arguments made by ethanol opponents.

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Developers of a proposed barley-to-ethanol plant for Great Falls, Montana, received notice from the U.S. EPA that its pathway has been approved both as a renewable fuel and as a advanced biofuel, as long as it meets specified energy and yield levels.

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Sen Debbie Stabenow, D-Mich., recently introduced legislation that aims to provide tax credits for the production of renewable chemicals and investments in renewable chemical production facilities.

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Work begins to help the ethanol industry comply with far-reaching food and feed safety rule. This article appears in the December issue of EPM.

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SE Asia conference facilitates $81 M in US DDGS sales

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By Kevin, Roepke, U.S. Grains Council

November 09, 2015

More than a fifth of Southern Asia and Oceania's annuals sales volumes were inked or discussed during a recent conference in Cambodia. The 335,000 metric tons traded that week market a new record.

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The Deinove, Flint Hills research projects targets the production of ingredients for animal feed using Deinococcus bacteria and raw material provided by Flint Hills. Over the next 17 months, Deinove will screen its library of 6,000 strains.

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DDGS prices are starting to work higher, after seeing their season lows at the beginning of October. U.S. buyers are picking up their usage, and demand from the export market, particularly for containers, has stayed pretty steady.

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News that Chinese companies have petitioned the Chinese government to launch an anti-dumping investigation over imports of U.S. distillers grains is a factor in lowered distillers grains prices and slowed exports, but it's not the only factor.

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Unprocessed feed grain exports accounted for less than 15 percent of U.S. production, but adding grain equivalents for value-added products, such as ethanol, DDGS and meat, raises that to 26 percent.

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Have you met Colonel Korn? How about Andy and Sandy? The Nebraska Ethanol Board is happy to make the introductions.

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The FDA is holding a day-long public meeting in Chicago regarding the new food safety regulations. It can be attended in person or via Webcast. FSMA is introducing a new level of regulations to the feed industry.

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Ethanol dry mills, at 445.2 million bushels, used nearly 90 percent of the corn consumed for fuel ethanol production in August, the remainder being used by wet millers.

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In August, U.S. ethanol exports fell 35 percent t to the lowest monthly volume in more than two years, according to RFA analysis of government data released Oct. 7. DDGS exports also decreased 6 percent from the record high set in July.

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After a year and a half of record earnings, the ethanol industry stabilized in 2015, according to a CoBank ethanol industry report. Going forward, ethanol margins are expected to remain “modestly positive,� on average, for the next 12 to 18 months.

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Platts, a global provider of energy and commodities information, has began publishing price assessments for a key ethanol coproduct increasingly used as animal feed in the United States and globally.

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The DDGS market continues to move back down to the lower end of the spectrum as a percentage of corn. Chinese buying, which moved the market up through the spring and early summer, has been on the sidelines for the past several months.

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The final rule implementing FSMA reforms food safety laws, shifting the focus from responding to contamination to preventing it. The rule introduces new rules for feed manufacturers, including the ethanol industry's coproducts.

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Direvo announces results of extended commercial trial at a U.S. ethanol plant showing new enzyme blend increases oil recovery by over 20 percent.

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With Labor Day approaching, DDGS prices have dropped back down to early July values, at best, after having rebounded a bit at the end of July and early August. Chinese Gulf demand has begun to drop.

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The U.S. EPA is inviting public comments on the list of candidates being considered for appointment to its Science Advisory Board Agricultural Science Committee, which provides advice on matters related to farming and agriculture-related industries.

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Lincolnway Energy LLC has announced financial results for the third quarter of its fiscal year 2015, the three months ended June 30. The company reported net income of $600,000, or $14.24 per unit. Gross profit for the quarter was $1.3 million.

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