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USDA maintains outlook for 2020-'21 soybean oil use in biodiesel

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By Erin Voegele

March 09, 2021

FeedstocksNorth America

The USDA maintained its 2020-'21 forecast for soybean oil use in biodiesel in its latest World Agricultural Supply and Demand Estimates report, released March 9. U.S. soybean supply and use projections were also mostly unchanged.

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Ethanol sales by production units the south-central region of Brazil were up 5 percent during the first half of February when compared to the same period of 2020, according to data released by UNICA, the Brazilian sugarcane industry association.

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U.S. biodiesel production reached 159 million gallons in December 2020, up from 151 million gallons the previous month and up from 133 million gallons in December 2019, according to data released by the U.S. EIA on Feb. 26.

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The USDA recently released its Grain Crushings and Co-Products Production report for February, reporting that corn use for fuel ethanol was at 430 million bushels in December, down from both the previous month and December 2019.

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Tom Vilsack is once again leading the USDA. The Senate on Feb. 23 voted 92 to seven to confirm him as secretary of agriculture. Vilsack, a former two-term governor of Iowa, served as ag secretary during all eight years of the Obama administration.

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The USDA predicts that corn use for ethanol will remain relatively flat, increasing by 0.5 percent over the next decade, according to data released by the agency in February as part of its long-term agricultural projections through 2030.

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The USDA predicts that 8.6 billion pounds of soybean oil will go to biodiesel production annually by 2030, up from 8.15 billion pounds in 2021-'22, according to data released by the agency as part of its long-term agricultural projections.

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UNICA, the Brazilian sugarcane industry association, has announced that domestic ethanol sales by mills in the south-central region of the country were up nearly 2 percent during the second half of January.

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Just as ethanol has played an essential role in addressing the COVID-19 pandemic, the low-carbon fuel will also serve as essential energy for combatting climate change, RFA President and CEO Geoff Cooper said Feb. 16 at the 26th annual NEC.

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Even after experiencing a drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released by RFA.

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Mixed with steam, run through a reformer and fermented, landfill gas proves an economic and environmentally beneficial feedstock for ethanol production. And each LFG project is a source of green energy that can last for more than two decades.

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Legislation recently introduced in Iowa that aims to establish a state biofuels standard would create more than 3,500 new jobs and generate nearly $550 million in household income by 2026, according to a study released by the IRFA on Feb. 15.

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The U.S. Energy Information Administration has released data showing U.S. biodiesel production reached 151 million gallons in November 2020, down 9 million gallons from the previous month, but up 24 million gallons from November 2019.

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UNICA, the Brazilian sugarcane industry association, has released new data that shows the country's corn ethanol production continues to grow. Ethanol exports and sales of ethanol for use in sanitizing and industrial applications are also up.

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The USDA maintained its forecast for 2020-'21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released Feb. 9. The outlook for corn exports was increased, while the forecast for ending stocks was reduced.

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Neste released fourth quarter financial results on Feb. 5, reporting that its renewable products segment proved to be very resilient despite the impacts of the COVID-19 pandemic, with increased sales volumes and strong sales margins.

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The USDA has increased its forecast for 2020-'21 soybean oil use in biodiesel in its latest World Agricultural Supply and Demand Estimates report, released Feb. 9. The outlook for soybean exports was also increased, with ending stocks lowered.

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The National Biodiesel Board has appointed Liz McCune as director of communications. With an in-depth background in strategic communications, McCune is passionate about storytelling and building relationships with industry partners.

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Rep. Julia Brownley, D-Calif., on Feb. 3 reintroduced the Sustainable Aviation Fuel Act, which aims to incentivize the production of sustainable aviation fuel (SAF), including the establishment of an aviation-only Low Carbon Fuel Standard.

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Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn., on Feb. 3 reintroduced legislation that aims to require the U.S. EPA to update its outdated greenhouse gas (GHG) modeling for ethanol and biodiesel.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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Secretary of agriculture nominee Tom Vilsack stressed the important role biofuels and bioenergy will play in meeting the Biden administration's climate goals during a Feb. 2 hearing before the Senate Committee on Agriculture, Nutrition and Forestry.

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The USDA recently released its Grain Crushings and Co-Products Production report for January, reporting that corn use for fuel ethanol was at 432 million bushels in November, down from both the previous month and November 2019.

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The Canola Council of Canada has announced it sees potential in the federal government's proposed rules for the Clean Fuel Standard, which were released in December. If adopted, the regulations will come into force next year.

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President Biden on Jan. 27 issued an executive order that aims to tackle the climate crisis, create jobs and restore scientific integrity across the federal government. The order addresses the production and sourcing of biobased products and fuels.

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California Ethanol + Power announced it will engage with the local Imperial Valley farming communities to secure formal commitments to grow the first 20,000 acres of sugarcane feedstock for Sugar Valley Energy, a planned low-carbon ethanol plant.

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ADM discussed the status of its ethanol operations during a Q4 earnings call held Jan. 26. While ethanol margins are low, the company expects the supply-demand balance to improve through increased exports to China and industry reconfiguration.

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The biodiesel and renewable diesel industry is on the “RISE�. This week the NBB hosted more than 550 biodiesel and renewable diesel producers, distributors, retailers, and other industry advocates virtually to share the direction of the industry.

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BBI International has announced that the 2021 International Fuel Ethanol Workshop & Expo, the ethanol industry's largest conference, will be held July 13-15 in Minneapolis. The event was originally scheduled to be held in mid-June.

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