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Report predicts 7% increase in Brazilian ethanol production this year

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By Erin Voegele

September 11, 2023

MarketsOperationsFeedstocks

Ethanol production in Brazil is expected to increase by 7 percent this year due to an increase in sugarcane production and a continued steady increase in corn ethanol production, according to a report filed with the USDA.

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On Sept. 6, Illinois Gov. JB Pritzker joined state and local leaders to celebrate the groundbreaking of Incobrasa Industries LTD's expanded soybean crushing facility. The project adds 70,000 square feet of new state-of-the-art production facilities.

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Biodiesel production in Brazil is expected to increase approximately 5 percent this year, with consumption up an estimated 6 percent, according to a report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network.

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Gevo Inc. has finalized and executed a notice of grant and agreement award with the USDA for a Partnerships for Climate-Smart Commodities grant of up to $30 million for Gevo’s Climate-Smart Farm-to-Flight Program.

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Chevron Renewable Energy Group broke ground on the expansion of its Emden, Germany biorefinery during a ceremony held on Sept. 2. The expansion project includes the addition of a pretreatment system at the facility.

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U.S. operable biofuels capacity was up in June, with gains for both ethanol and renewable diesel and associated fuels, according to data released by the U.S. EIA on Aug. 31. Feedstock consumption was also up during the month.

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Sugarcane processing in the south-central region of Brazil was up significantly during the first half of August, according to data released by UNICA, the Brazilian sugarcane industry association. Ethanol production and sales were also up.

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Caramuru, a Brazilian agribusiness company, on Aug. 16 announced it has begun selling soybean-based ethanol produced at its processing complex in Sorriso, Mato Grosso, a city located in the west-central region of the country.

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UNICA, the Brazilian sugarcane industry association, announced that mills in the south-central region of the country processed a record volume of sugarcane during the second half of July. Ethanol production and ethanol sales were also up.

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Yield10 Bioscience Inc. released second quarter financial results on Aug. 14, reporting that the harvest of 2022-'23 winter camelina under grower contracts is well underway and the first delivery of camelina to a biofuel customer is now complete.

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The USDA maintained its forecast for 2023-’24 corn use in ethanol in its latest World Agricultural and Demand Estimates report, released Aug. 11. Corn production for 2023-’24 is currently expected to be the second highest on record.

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USDA’s National Agricultural Statistics Service released its latest Crop Production report on Aug. 11, predicting 2023 corn production will be up 10 percent when compared to last year, reaching 15.1 billion bushels.

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USDA's National Agricultural Statistics Service released its latest Crop Production report on Aug. 11, predicting 2023 soybean crop will be down 2 percent when compared to last year, with production forecast at 4.21 billion bushels.

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Yield10 Bioscience Inc. has announced positive results in the first field test of stacked herbicide tolerance (HT) traits in camelina. These proprietary stacked HT camelina varieties demonstrate tolerance to herbicides and herbicide soil residues.

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Doug Haugh, chief commercial officer at Vertex Energy Inc., discussed the company's efforts to expand the types of feedstocks processed in its renewable diesel unit during the company's second quarter earnings call, held Aug. 9.

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Aemetis Inc. released Q2 financial results on Aug. 3, reporting progress with the development of its dairy RNG project and its proposed renewable diesel and SAF biorefinery. The company also highlighted its existing ethanol and biodiesel operations.

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Todd Borgmann, CEO of Calumet Specialty Products L.P., on Aug. 4 announced that all elements of the company's Montana Renewables project met or outperformed expectations during the second quarter of 2023.

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Operable biofuels production capacity in the U.S. fell slightly in May, with reductions for both ethanol and biodiesel, according to date released by the U.S. EIA on July 31. Feedstock consumption was up from both the previous month and May 2022.

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Operable biofuels production capacity in the U.S. fell slightly in May, with reductions for both ethanol and biodiesel, according to date released by the U.S. EIA on July 31. Feedstock consumption was up from both the previous month and May 2022.

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CVR Energy Inc. expects the feedstock PTU at its Wynnewood refinery in Oklahoma to become operational in Q4. The company is also in discussions with potential partners to develop an additional renewables project that could include SAF capacity.

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Neste released second quarter financial results on July 27, reporting robust demand for renewable diesel and relatively stable feedstock pricing. SAF and renewable diesel sales were up 17 percent when compared to the second quarter of 2022.

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The USDA recently released its Grain Crushings and Co-Products Production Report for July, reporting that corn use for fuel ethanol production in May was down when compared to the same month of last year.

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The EPA has opened a public comment period on Class VI permits for a CCS project that would sequester CO2 produced at a fertilizer plant. Project developers say the resulting low-carbon fertilizer could help lower the CI score of corn and ethanol.

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UNICA, the Brazilian sugarcane industry association, has announced sugarcane process was up during the second half of June. Ethanol production was down for the two-week period, while ethanol sales were up for the full month.

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EarthDaily Agro has been selected by Global Clean Energy Holdings Inc. to support work to increase the adoption of camelina in the renewable fuels marketplace through the company's Climate-Smart Camelina Project.

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The Australian Renewable Energy Agency (ARENA) on July 3 opened a $30 million sustainable aviation fuels (SAF) funding initiative that aims to reduce emissions in the aviation sector by supporting the development of a domestic SAF industry.

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Casterra Ag Ltd., an integrated castor cultivation solution company and a subsidiary of Evogene Ltd., has announced additional $2.2 million of purchase orders to supply castor seeds during 2023, for new African territories.

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The USDA maintained its forecast for 2023-’24 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released July 12. The agency, however, reduced its estimate for 2022-’23 corn use in ethanol.

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The USDA will invest $300 million through President Biden’s Investing in America agenda to improve measurement, monitoring, reporting and verification of GHG emissions and carbon sequestration in climate-smart agriculture and forestry.

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The USDA will invest $300 million through President Biden's Investing in America agenda to improve measurement, monitoring, reporting and verification of GHG emissions and carbon sequestration in climate-smart agriculture and forestry.

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