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Report provides overview of European biobased economy

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By Erin Voegele

February 25, 2015

FeedstocksPolicyBusinessOperationsMarketsCoproducts

A report published by the USDA Foreign Agricultural Service's Global Information Network provides an overview of the EU biobased economy and estimated biomass requirements for the production of biofuels, bioplastics, biochemicals and other products.

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All eyes on China for DDGS market impacts

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By Sean Broderick, CHS Inc.

February 24, 2015

The DDGS market is still waiting to see what China is going to do in the container markets. As many as 35 boats having been reported as traded for the upcoming March through September time frame.

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Abengoa's biofuels segment experienced the best year in its history in 2014 due, in part, to high margins and increased ethanol production and sales, company CEO Manuel Sanchez Ortega reported during the company's 2014 fiscal year financial results.

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Export numbers from the Wisconsin Department of Trade, Agriculture and Consumer Protection show an 18 percent increase in ethanol exports from Wisconsin, totaling an export value of over $250 million.

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At this year's National Ethanol Conference, the Renewable Fuels Association released a new ABF Economics study titled "Contribution of the Ethanol Industry to the Economy of the United States in 2014."

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The first monthly survey of industrial grain crush and coproducts was released Feb. 19 by the USDA National Agricultural Statistics Survey, showing corn and sorghum consumption data for fuel ethanol, beverage alcohol and other uses.

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In 2014, the U.S. ethanol industry had its most profitable year in history, Bob Dinneen, president and CEO of the Renewable Fuels Association, said Feb. 19. "Critics may be legion but we will prevail," he said. "We are here to stay."

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Valicor Separation Technologies LLC and Purina Animal Nutrition LLC have signed a letter of intent to work together on developing a high protein coproduct market. This move compliments the company's Valicor Stillage Fractionation Technology.

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EPM's Spotlight on Illinois also includes information about work at a research center in that state. The National Corn-to-Ethanol Research Center opened its doors in 2003.

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Valicor Inc. has announced that it has completed the acquisition of a patent that covers the extraction of protein from corn ethanol stillage and is designed to help ethanol producers maximize their coproduct recovery and value.

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USDA put a number to a projected increase in ethanol use in its Feb. 10, supply/demand report. Based on the higher forecasts for 2015 gasoline consumption, the USDA raised expected corn use for ethanol production by 75 million bushels.

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Utilization of the fiber portion of a corn kernel may be the next big thing, writes Kurt A. Rosentrater of Distillers Grains Technology Council.

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ICM Inc. has announced that Kansas Ethanol LLC, of Lyons, Kansas, has signed an agreement for purchase, license to operate, and full-scale installation of ICM's patent-pending Fiber Separation Technology.

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Since launching the renewable fuels report in the Agriculture Marketing Resource Center in 2008, retired Iowa State University ag economist Don Hofstrand has followed the swings in ethanol profitability through a model Iowa-based ethanol plant.

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A report recently filed with the USDA Foreign Agricultural Service's Global Information Network estimates China's fuel ethanol production reached 2.8 billion liters (739.68 million gallons) last year, up 6 percent from 2013.

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Iowa Gov. Terry Branstad has announced a new campaign to promote the renewable fuel standard (RFS) during the 2016 Iowa presidential caucuses. The multimillion dollar effort will aim to educate both candidates and caucus-goers on the RFS.

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Gevo Inc. has announced several cost-saving initiatives aimed at improving its overall cash flow. The actions are expected to decrease the company's average monthly corporate-wide EBITDA burn rate by 40 percent this year.

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The February issue of Ethanol Producer Magazine has an exports theme and includes stories about trade missions overseas to build global markets for U.S. ethanol as well as the biggest export markets for U.S. DDGS and ethanol, writes Tom Bryan.

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With the Chinese announcement that importing MIR 162 is allowed and February right around the corner, all eyes are now on the Chinese, and whether their buying will resume at volumes that were happening early last summer.

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Edeniq announced it has raised $16 million in equity. The investment was led by I2BF Global Ventures. Draper Fisher Jurvetson, Angeleno Group, Flint Hills Resources Renewables, Westly Group, Cyrus Capital, and Nimes Capital also participated.

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BBI International has announced the agenda for the technical sessions of the 8th annual International Biomass Conference & Expo, North America's largest and fastest growing biomass conference, taking place April 20-22 in Minneapolis.

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After halting distillers grains imports late last year, the world's top DDGS buyer is poised to resume business, but on what terms?

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Gevo Inc. recently announced it has launched sales of renewable isobutanol to Brenntag Canada Inc. for distribution into the solvents, oil and gas, mining and specialty chemicals markets. The initial market entry is focused on Canada.

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The Department of Energy has announced that its Illinois Basin-Decatur Project successfully captured and stored 1 million metric tons of carbon dioxide from an Archer Daniels Midland Co. ethanol plant and injected it into a deep saline formation.

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Gevo Inc. has issued an update of operations at its Luverne, Minnesota, plant, reporting that the facility produced more than 50,000 gallons of biobased isobutanol in December. The company also announced the transfer of its common stock listing.

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DDGS priced well above corn

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By Sean Broderick, CHS

January 02, 2015

DDGS prices are, in some places, 120 to 130 percent above corn. Traders will keep an eye on how the domestic market reacts to the price run up, writes Sean Broderick of CHS Inc.

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Coarse grains exports could increase dramatically if United States-Cuba diplomatic relations are fully normalized, with the island nation having the potential to become the 12th largest market for U.S. corn if trade is truly open.

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A new catalytic process is able to convert what was once considered biomass waste into lucrative chemical products that can be used in fragrances, flavorings or to create high-octane fuel for racecars and jets.

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As word came that Chinese officials have given verbal approval for the biotech corn trait MIR 162, trade and agriculture stakeholders gathered this week in Chicago for the U.S.-China Joint Commission on Trade and Commerce discussions.

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The Renewable Fuels Association has submitted comments to the Food and Drug Administration last on its supplemental rulemaking proposal outlining best practices for the regulation of animal food under the Food Safety Modernization Act.

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