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USDA WASDE lowers forecast for soybean oil use in biofuel

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By Erin Voegele

March 09, 2022

BusinessFeedstocksNorth America

The USDA decreased its forecast for soybean oil use in biofuel production in its latest World Agricultural Demand and Supply Estimates report, released March 9. The agency is also predicting higher soybean prices, lower production and higher exports.

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Carbon transformation company Twelve and biotechnology company LanzaTech have transformed CO2 emissions into ethanol as a part of an ongoing research and development partnership. The companies are also working to produce polypropylene.

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In the wrap-up session of a two-day EPA workshop, Reid Detchon, senior advisor for climate solutions for the United Nations Foundation, urged EPA to stop dwelling on uncertainties in GHG modeling and incorporate Argonne's GREET model.

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UNICA, the Brazilian sugarcane industry association, announced has announced mills in the south-central region of Brazil produced no sugarcane ethanol during the first half of February. Corn ethanol production, however, continued.

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Eni and the Ministry of Agriculture and Rural Development of the Republic of Mozambique (MADER) on Feb. 28 signed an agreement for the cooperation and development of agricultural projects in Mozambique, aimed at producing biofuel feedstocks.

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Marathon Petroleum and Neste on March 1 announced they have entered into definitive agreements to form a 50/50 joint venture to produce renewable diesel following a conversion project at Marathon's existing refinery in Martinez, California.

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Patrick Gruber, CEO of Gevo Inc., provided an update of the company's plans to produce sustainable aviation fuel (SAF) and other renewable hydrocarbons from ethanol during a fourth quarter earnings call held Feb. 24.

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Total U.S. operatable biofuels production capacity fell slightly in December to 20.834 billion gallons per year, according to data released by the U.S. Energy Information Administration on Feb. 28. Feedstock use was up for the month.

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Total U.S. operatable biofuels production capacity fell slightly in December to 20.834 billion gallons per year, according to data released by the U.S. Energy Information Administration on Feb. 28. Feedstock use was up for the month.

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The USDA recently released its Grain Crushings and Co-Products Production report for December, reporting that corn use for fuel ethanol production was up from both the previous month and the same period of 2020.

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Chevron Corp. on Feb. 28 announced a definitive agreement to acquire REG. Chevron cited REG's expertise in feedstock sourcing and market access as two factors that make the transaction an attractive way to boost Chevron's renewable fuels business.

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Growth Energy CEO Emily Skor on Feb. 24 participated in the USDA's 98th Annual Agricultural Outlook Forum. Skor was a featured panelist in the plenary session titled, “Growing Market Opportunities for Climate Smart, Sustainable Agriculture Systems.�

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Chevron U.S.A. Inc. and Bunge North America Inc. on Feb. 22 announced the signing of definitive transaction agreements to create their previously announced joint venture. The new venture will create renewable feedstocks for biofuel production.

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In 2021, the U.S. ethanol industry “recovered substantially� from pandemic conditions, with ethanol and gasoline use approaching pre-COVID-19 levels in the second half of the year, according to an analysis completed by ABF Economics.

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The RFA released its 2022 Ethanol Industry Outlook and Pocket Guide during the 27th annual National Ethanol Conference in New Orleans. The annual publications and conference all share a common theme: Zeroing in on New Opportunities.

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In his annual State of the Industry Address, RFA President and CEO Geoff Cooper said that the global quest to achieve net-zero carbon emissions “may very well be the greatest opportunity for growth and value creation in the industry's history.�

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BDI-BioEnergy International GmbH on Feb. 17 announced it has contracted with Renewable Energy Group to upgrade two biodiesel plants in Germany by installing a state-of-the-art feedstock pretreatment technology to process wastes fats and oils.

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CVR Energy has announced the renewable diesel conversion project at its Wynnewood, Oklahoma, refinery is nearly complete. The company's board of directors has also approved a plan to break out its renewable fuels business as a separate entity.

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A report released on Feb. 21 shows that new and emerging technologies and practices could help the ethanol industry achieve net-zero carbon emissions well before its current goal of 2050, according to the RFA.

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Aemetis Inc. announced on Feb. 16 that the Universal Biofuels subsidiary of Aemetis in Kakinada, India has agreed to acquire a site to construct a tallow oil refining facility to provide feedstock to the company's biodiesel and SAF plants.

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Neste released Q4 financial results on Feb. 10, reporting that the company's renewable products business segment achieved improve sales volumes and sales margins despite several scheduled shutdowns, a weaker U.S. dollar and higher fixed costs.

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Renewable Energy Group Inc. will install a state-of-the-art pretreatment facility in Germany, enabling the company to refine some of the lowest carbon intensity, hardest-to-convert waste fats and oils for bio-based diesel production.

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Property Reincarnations

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By Katie Schroeder

February 16, 2022

Corn stover ethanol production still holds great promise. But at least two of the former “big three” assets in the space have been repurposed for different forms of biofuel production.

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The program will finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits.

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LanzaJet has entered into an MOU with Marquis Sustainable Aviation Fuel to construct a to construct a 120 MMgy sustainable fuels plant using low-CI feedstocks to produce SAF and renewable diesel via the LanzaJet alcohol-to-jet process.

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The USDA maintained its forecast for 2021-'22 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released Feb. 9. The forecasts for 2021-'22 U.S. corn supply, use and price were also unchanged.

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Global Clean Energy Holdings Inc. is advancing its renewable diesel production through an agreement with ExxonMobil, which will invest $125 million with an option to acquire up to a 25 percent equity stake in the company.

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The USDA maintained its forecast for 2021-'22 soybean oil use in biofuel production in its latest WASDE report, released Feb. 9. The 2021-'22 soybean outlook is for increased soybean crush and lower ending stocks.

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Nuseed has entered into a long-term strategic offtake and market development agreement with BP Products North America Inc. that will see bp, or its affiliates, purchase Nuseed Carinata oil for use as biofuel feedstock.

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Nuseed has entered into a long-term strategic offtake and market development agreement with BP Products North America Inc. that will see bp, or its affiliates, purchase Nuseed Carinata oil for use as biofuel feedstock.

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