Ethanol & Biodiesel Information Service
Pricing, News and Analysis for Buying and Supplying Ethanol-Blended Fuel and Biodiesel
February 1, 2016 • Volume 13, Issue 5
Ethanol Futures (cts/gal contract price)
February 2016
CBOT
141.40
March 2016
April 2016
143.00
144.60
Settlement Thursday, January 28, 2016
May 2016
145.00
Source: Chicago Board of Trade
Ethanol & Gasoline Component Spot Market Prices
U.S. RINs (prices in U.S. $/RIN)
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
U.S. Ethanol RINs
Current Yr
0.6325-0.6350
0.6300-0.6375
0.6350-0.6400
0.6450-0.6500
0.6650-0.6850
0.64550
Previous Yr
0.6325-0.6375
0.6300-0.6375
0.6350-0.6400
0.6450-0.6500
0.6700-0.6800
0.64575
U.S. Cellulosic RINs
Current Yr
1.3250-1.3350
1.3250-1.3350
1.3250-1.3350
1.3250-1.3350
1.3250-1.3350
1.33000
Previous Yr
0.6350-0.6450
0.6350-0.6450
0.6350-0.6450
0.6350-0.6450
0.6350-0.6450
0.64000
U.S. Biodiesel RINs
Current Yr
0.6950-0.7000
0.6900-0.7100
0.6950-0.7100
0.6975-0.7200
0.7300-0.7500
0.70975
Previous Yr
0.6975-0.7025
0.7000-0.7100
0.7050-0.7100
0.6875-0.7150
0.7250-0.7450
0.70975
U.S. Advanced Biofuel RINs
Current Yr
0.6850-0.6900
0.6800-0.7000
0.6850-0.7000
0.6875-0.7100
0.7200-0.7400
0.69975
Previous Yr
0.6875-0.6925
0.6750-0.7000
0.6800-0.7000
0.6750-0.7050
0.7100-0.7300
0.69550
Thurs. 01/28
Wkly. Avg.
Chicago (prices in U.S. $/gal.)
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Ethanol
1.3600-1.3700
1.3850-1.3900
1.3900-1.4000
1.4050-1.4175
1.4025-1.4200
1.39401
DP ETH
1.3400-1.3600
1.3800-1.3900
1.3850-1.4000
1.4050-1.4150
1.4050-1.4150
1.38950
B100 SME
2.7000-2.8500
2.6400-2.7900
2.6700-2.8200
2.7300-2.8800
2.7400-2.8900
2.77100
RBOB Unl
0.8838-0.9438
0.8450-0.8550
0.8110-0.8710
0.8070-0.8370
0.8803-0.8903
0.86242
RBOB Pre
1.4088-1.4688
1.3625-1.3725
1.3285-1.3885
1.3220-1.3520
1.3553-1.4203
1.37792
CBOB Unl
0.8738-0.9338
0.8275-0.8375
0.7935-0.8535
0.7870-0.8170
0.8203-0.8853
0.84292
ULSD
0.9757-0.9857
0.9401-0.9501
0.9663-0.9763
1.0270-1.0320
1.0297-1.0397
0.99226
Chicago Rule 11 (prices in U.S. $/gal.)
Current Yr
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.3500-1.3700
1.3700-1.3800
1.3800-1.3900
1.3900-1.4000
1.3900-1.4100
1.38300
Ethanol Market Overview:
EIA adds legs to ethanol rally
Bulk ethanol values continued to move slowly
higher most of last week, but this time added
in some supportive figures on production and
supply from the government that may have made
converts of out of some who continued to doubt
the recent price recovery.
Those looking for more evidence that ethanol
producers are beginning to roll back production
got it when EIA revealed output fell 2.2% for
the week ending Jan. 22, taking it 4.2% lower
over the last two weeks. The 961,000 b/d that
the agency had ethanol plants averaging for the
week cut 22,000 b/d from the week before and
represented the lowest weekly output rate for
ethanol since November.
In addition, ethanol inventory nationwide
drew lower for the first time since the week of
Christmas, dropping 504,000 bbl, or 2.3%, from
the week before to 21.436 million bbl.
The U.S. stock draw still left supply 3.9%
higher than a year ago, and it also came with
some irregular regional figures that led to some
head-scratching among market watchers – none
more than the massive 794,000 bbl week-toweek draw from Gulf Coast storage. Gulf Coast
storage at 3.679 million bbl slumped some 3.8%
from the same week last year.
For some, that Gulf Coast figure put a
question mark on the overall supply draw
offered by EIA. The Gulf Coast region had been
running way ahead of the same time last year
until last week, and some market watchers
See page 2 for more spot pricing locations 
continued on page 3
In Each Issue ...
Ethanol Market Overview .......................... 1
Renewable Fuels Averages........................ 5
Biodiesel/Ethanol Plant Profitability.........10
Ethanol and Gasoline
Component Spot Prices ........................ 1-2
Biofuels Stock Performance...................... 6
Renewable Fuel Feedstock/
Co-Product Price Index............................11
Block Term Contract Prices
in Key Markets........................................... 3
In Key Commodity Markets....................... 8
Bulk Truck Spot Prices
in Key Markets........................................... 3
Inside Washington..................................... 7
European, Brazilian and
CBI Markets..............................................12
Key Supply and Demand
Statistics.................................................... 8
Ethanol & Biodiesel Information Service is an OPIS Publication
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News of the Week.....................................14
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Ethanol & Biodiesel Information Service
February 1, 2016 • Volume 13, Issue 5
Ethanol & Gasoline Component Spot Market Prices (prices in U.S $/gal.)
Gulf Coast
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
Ethanol
1.4300-1.4500
1.4500-1.4600
1.4500-1.4700
1.4700-1.4900
1.4800-1.5000
1.46500
B100 SME
2.5600-2.6700
2.5000-2.6100
2.5300-2.6400
2.5900-2.7000
2.6000-2.7100
2.61100
RBOB Unl
0.9906-1.0006
0.9600-0.9625
0.9360-0.9710
0.9570-0.9620
0.9978-1.0103
0.97478
RBOB Pre
1.1756-1.1856
1.1575-1.1600
1.1710-1.2060
1.1920-1.1970
1.2328-1.2453
1.19228
CBOB Unl
0.9956-1.0181
0.9500-0.9625
0.9310-0.9660
0.9520-0.9570
0.9928-1.0053
0.97303
Unleaded
1.0306-1.0381
0.9775-0.9900
0.9635-0.9960
0.9820-0.9920
1.0278-1.0378
1.00353
ULSD
0.9621-0.9676
0.9051-0.9101
0.9288-0.9343
0.9845-0.9870
0.9922-0.9967
0.95684
61ULSD
0.9621-0.9676
0.9051-0.9101
0.9288-0.9343
0.9845-0.9870
0.9922-0.9967
0.95684
New York
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
Ethanol
1.4400-1.4800
1.4750-1.4900
1.4850-1.5000
1.4900-1.5100
1.4900-1.5100
1.48700
ITT ETH
1.4350-1.4600
1.4750-1.5000
1.4900-1.5050
1.4950-1.5150
1.4950-1.5150
1.48850
Ethanol Fwd
1.4475-1.5000
1.4950-1.5100
1.5050-1.5200
1.5000-1.5250
1.5100-1.5200
1.50325
B100 SME
2.6100-2.7500
2.5500-2.6900
2.5800-2.7200
2.6400-2.7800
2.6500-2.7900
2.67600
RBOB Unl
1.0773-1.0873
1.0250-1.0350
1.0422-1.0522
1.0382-1.0482
1.0715-1.0815
1.05584
RBOB Pre
1.2113-1.2213
1.1575-1.1675
1.1747-1.1847
1.1682-1.1782
1.2015-1.2115
1.18764
CBOB Unl
1.0773-1.0873
1.0250-1.0350
1.0422-1.0522
1.0382-1.0482
1.0715-1.0815
1.05584
CBOB Pre
1.2113-1.2213
1.1575-1.1675
1.1747-1.1847
1.1682-1.1782
1.2015-1.2115
1.18764
ULSD
0.9857-0.9957
0.9253-0.9353
0.9577-0.9677
1.0177-1.0277
1.0234-1.0334
0.98696
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
Los Angeles
Ethanol
1.4900-1.5100
1.4800-1.5000
1.5000-1.5200
1.5100-1.5300
1.5400-1.5600
1.51400
CARBOB - R
1.1131-1.1231
1.0575-1.0675
1.0885-1.0985
1.0370-1.0470
1.0403-1.0503
1.07228
CARBOB - P
1.4631-1.4731
1.4075-1.4175
1.4385-1.4485
1.3870-1.3970
1.3903-1.4003
1.42228
ULSD
1.0176-1.0276
0.9651-0.9751
0.9963-1.0063
1.0370-1.0470
1.0397-1.0497
1.01614
Nebraska (fob Railcar)
Ethanol
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.2350-1.2450
1.2300-1.2400
1.2400-1.2600
1.2600-1.2800
1.3000-1.3100
1.26000
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.5350-1.5450
1.5300-1.5500
1.5400-1.5600
1.5500-1.5800
1.5900-1.6100
1.55900
Tampa
Ethanol
Dallas
Ethanol
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.3900-1.4200
1.3900-1.4200
1.4000-1.4200
1.4000-1.4500
1.4300-1.4700
1.41900
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.4900-1.5100
1.4800-1.5000
1.5000-1.5200
1.5100-1.5300
1.5400-1.5600
1.51400
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Wkly. Avg.
1.4700-1.5000
1.4800-1.5000
1.5000-1.5200
1.5100-1.5300
1.5000-1.5200
1.50300
San Francisco
Ethanol
Pacific Northwest
Ethanol
Calif. Low Carbon Fuel Standard
Carbon Credit: $/MT; Carbon Intensity Pts: $/CI; Carbon Credit per Gallon Diesel: $/gal; Carbon Credit per Gallon Gasoline: $/gal)
Fri. 01/22
Mon. 01/25
Tues. 01/26
Wed. 01/27
Thurs. 01/28
Carb Credit 117.000-122.000 122.000-124.000 120.000-128.000 122.000-126.000 124.000-128.000
CI Pts
0.00954-0.00994 0.00994-0.01011 0.00978-0.01043 0.00994-0.01027 0.01011-0.01043
Wkly. Avg.
123.3000
0.010049
CC Dsl
0.0321-0.0335
0.0335-0.0340
0.0329-0.0351
0.0335-0.0346
0.0340-0.0351
0.03383
CC Gas
0.0459-0.0478
0.0478-0.0486
0.0470-0.0502
0.0478-0.0494
0.0486-0.0502
0.04833
CC Dsl 95
0.0305-0.0318
0.0318-0.0323
0.0313-0.0334
0.0318-0.0328
0.0323-0.0334
0.03214
CC Gas 90
0.0413-0.0430
0.0430-0.0438
0.0423-0.0452
0.0430-0.0445
0.0438-0.0452
0.04351
Methodology and Definitions:
OPIS derives ethanol, gasoline and biodiesel prices
from many means, including surveying buyers and
sellers via phone/e-mail, and receiving postings
electronically from producers and purchasers. While
OPIS makes best efforts to ensure the accuracy and
timeliness of its prices, it in no way guarantees either
the accuracy or timeliness of any of the data included
herein. Definitions are as follows:
Ethanol Spot Price (Bulk Barge/Rail): These are
large quantity pure ethanol deals transacted or being
discussed in certain FOB markets.
Brazil Ethanol: Undenatured anhydrous ethanol
cargoes, FOB Brazil terminals for export, typically
50,000 bbl or more available 5-30 days from the date
of publication. The assessment generally reflects
price at the Santos export terminal, though others
may be used for assessment purposes.
Block Term Contract Values: These are the
three-to-six month contract deals between large
buyers and sellers of pure ethanol. Some are
done as fixed, and those deals are reported in the
“Fixed” column. Other deals are done based on a
differential to certain gasoline benchmarks (usually
conventional spot unleaded). Those formulae are
tracked and reported by market each week in the
“Formula”column and calculated (based on the
closing Thursday price of the gasoline benchmark)
to arrive at a “Formula Calculated” price. All deals
(“Fixed” and “Formula”) are reported from a weighted
average survey.
Bulk Truck Spot Prices (Rack): These are the
prices for truck quantities of pure ethanol at storage
points in the given market. These prices are not
posted – they are offered to buyers given supply
and demand dynamics at prices discovered and
published by OPIS.
Splash Blend Rack Prices: These are the average
of the Thursday closing price that producers and
resellers are posting at various rack locations.
Typically prices are for small quantities that marketers
pull to blend into gasoline to create and deliver
ethanol-blended gasoline to accounts.
Splash Blend Producer Prices: These are the
average of the Thursday closing price that producers
(not resellers) are posting at various rack locations.
Typically prices are for small quantities that marketers
pull to blend into gasoline to create and deliver
ethanol-blended gasoline to accounts.
Low Carbon Fuel Standard Credits: Traded in
U.S. dollars per metric ton of carbon dioxide (CO2),
this represents the daily traded price range or range
of bids and offers on carbon credits generated for
compliance under California’s Low Carbon Fuel
Standard program implemented by the California Air
Resources Board. Trading is for credits transferable
in the current calendar year, until the last month of the
year when deals for the following year may also be
considered.
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Ethanol & Biodiesel Information Service
February 1, 2016 • Volume 13, Issue 5
wondered if it is a make-up call for overly large builds
reported previously for the region.
The Gulf is often a jumping off point for ethanol exports,
which might be indicated by the big draw for the week.
However, market sources have lately reported export interest
is not easy to find. Especially after the recent price gains,
reports indicate that foreign buying interest is light.
Neither was the draw reported by EIA last week regionally
universal. Both the East and West Coast regions reported
health supply builds for the week and the West made big gains
for the second week in a row, up 7.69% week-to-week as
inventory rose 205,000 bbl, to 2.871 million bbl – and that is
23.9% more ethanol than the region had on hand a year ago.
up about a penny Thursday for prompt shipments, trading at
$1.535 and $1.545/gal and climbing as much as 8cts from a
week ago as well.
Despite a bit of a pullback in gasoline demand that was not
unexpected given the huge jump it took the week before, EIA
had ethanol blending moving higher again for a recovery that
has now stretched for three report weeks. Ethanol blender
net input averaging 865,000 b/d nosed up 9,000 b/d for a
gain of nearly 1.1% from the week before and a rebound of
9.9% since the start of the year.
Spencer Kelly, skelly@opisnet.com
Ethanol losses weigh on Valero’s bottom line
There remained skeptics of the recent ethanol price rally,
and the market did seem to run out of steam by presstime
as the week came to a close. Ethanol may have rallied too
quickly for this time of year, and they maintain that given
supply fundamentals, the market may be ripe for profit taking.
Petroleum refiner Valero Energy Corp is also one of the
largest ethanol producers in the U.S. and the company
recently reported that a tough quarter for its ethanol
operations helped knock its fourth-quarter 2015 earnings
down by nearly 9.5% year on year.
Chicago spot in-tank volumes did seem to stall at the
$1.41-$1.42/gal level for anything available in the first week
or so of February – but that is up 3.5cts since the start of the
week and some 8cts week-to-week.
In its latest quarterly report, Valero said that its ethanol
segment delivered $37 million in operating income over the
fourth quarter, down 76%, compared to what the segment
brought the refiner during the 2014 quarter. “The $117 million
decrease was mainly due to lower gross margin per gallon
decline in ethanol prices versus relatively stable corn prices,”
explained Valero.
The nearby contango has eased as January drew to a
close, but any-February volumes in Chicago still generally
held a quarter to a half-cent premium over prompt transfers
by presstime, down from a week ago when that difference
stretched out to around 2.5cts.
Prices for ethanol via rail cars headed to Arizona moved
According to OPIS Spot Ethanol Assessment data for
Chicago, during January 2015 spot ethanol prices averaged
roughly $1.41/gal, compared to around $1.33/gal so far for
In Key Markets
Ethanol Buying Prices
City, State
Ethanol Truck & Spot Prices
Ethanol Spot Price -------- Block Term Q4-Q1 Contract Values -------Bulk Truck
Fixed
Formula
(Bulk Barge/Rail)
Formula (calculated) Spot Prices (rack)
Splash Blend Splash Blend
Rack Price Producer Prices
City, State
Spot Prices
(Rack)
Rack Price
Producer
Prices
Albany, NY
144.50
147.50
148.50
N/A
N/A
Cleveland, OH
145.00
166.40
N/A
Houston, TX
149.00
151.00
NYMEX RBOB
Unl 11
118.90
153.00
N/A
N/A
Decatur, IL
135.00
185.00
N/A
New Haven, CT
153.50
156.00
NYMEX RBOB
Unl 17.5
125.40
N/A
N/A
N/A
Des Moines, IA
131.00
142.19
141.15
New York, NY
150.00
152.50
NYMEX RBOB
Unl 14
121.90
155.50
N/A
N/A
Chicago, IL
141.13
143.00
NYMEX RBOB
Unl 4.5
112.40
143.00
140.00
140.00
Louisville, KY
141.00
N/A
N/A
N/A
146.00
N/A
N/A
Minneapolis, MN
135.00
N/A
N/A
N/A
138.00
150.32
147.80
St. Louis, MO
142.50
144.00
NYMEX RBOB
Unl 5
112.90
145.00
213.00
N/A
Los Angeles, CA
(90.1)
155.00
157.00
NYMEX RBOB
Unl 18
125.90
163.00
N/A
N/A
Phoenix, AZ
154.00
155.50
NYMEX RBOB
Unl 16
123.90
N/A
160.00
160.00
San Francisco, CA
(90.1)
155.00
157.00
NYMEX RBOB
Unl 18
125.90
163.00
N/A
N/A
Pacific Northwest
151.00
N/A
N/A
N/A
N/A
233.00
N/A
Doniphan, NE
130.00
149.45
142.20
Fargo, ND
129.00
147.81
145.04
Indianapolis, IN
136.00
N/A
N/A
Kansas City, KS
132.50
145.79
142.82
Madison, WI
134.50
154.88
N/A
Omaha, NE
132.00
144.72
141.98
Peoria/Pekin, IL
134.00
N/A
N/A
Sioux City, IA
131.00
150.83
144.67
Sioux Falls, SD
132.00
144.21
140.78
Topeka, KS
132.50
147.54
142.86
Wichita, KS
133.50
147.28
145.88
Denver, CO
143.50
259
N/A
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Ethanol & Biodiesel Information Service
January 2016 – a 5.7% cash price price drop.
Valero did boost its ethanol output by nearly 3.5% compared
to the year-ago quarter, collectively averaging 3.883 million
gal/day at its eleven U.S. ethanol plants last quarter. The gross
margin in those gallons dropped sharply, however, and at
45cts/gal the company’s ethanol margins plunged 47.7% year
on year. At the same time, Q4 ethanol operating expenses
– depreciation and amortization included – also dropped
from the year-ago quarter, down 17.1% to 34cts/gal. That left
ethanol per-gallon operating income at just 11cts, less than a
quarter of what Valero reported a year ago.
For all of 2015, ethanol operations returned $192 million in
operating income, and that paled next to the $782 million that
those operations delivered in 2014 – a full-year drop of almost
75.5%. Valero ethanol production averaged 3.827 million gal
in 2015, up 10.6% from 2014, but gross margins fell by more
than half, to 49cts/gal of ethanol, and operating income perethanol-gallon at 14cts slid 77.8% versus 2014. The year-on-year ethanol output gain was due to ongoing
optimization and plant improvements, Valero said
Altogether, Valero reported adjusted net income from
continuing operations at $862 million, or $1.79 per share, in
the latest quarter, down from to $952 million, or $1.83 per
share, for fourth quarter 2014. The company’s Valero’s refining
segment reported adjusted operating income for of $1.5 billion
last Q4, in line with $1.5 billion reported in Q4 2014.
Brad Addington, baddington@opisnet.com
Molly M. White, mmwhite@opisnet.com
Spencer Kelly, skelly@opisnet.com
Annual NBB gathering brings plant updates
The National Biodiesel Board held its annual conference
last week in Tampa and among the planned sessions, events
and scuttlebutt the meeting also generated a good deal of
news from biodiesel producers looking to play a bigger role
this year.
A revamped Nebraska biodiesel plant is likely to restart
production this quarter, according to a company involved in
the retrofitting of the 50-million gal/year facility.
“We are just in commissioning, and we are targeting a
first-quarter startup right now,” Rob Tripp, CEO of process
technology company Benefuel, told OPIS. “That is when
we would be mechanically complete and putting feedstock
into it,” he added while on the sidelines of the 2016 National
Biodiesel Conference & Expo.
February 1, 2016 • Volume 13, Issue 5
say how long it could take, but we’re hoping as soon as
possible.” The amount of initial output is also unknown,
according to Tripp.
A biodiesel facility located in Connecticut’s largest city
may be operating at its dramatically larger 13 million gal/year
full capacity in a few weeks, according to a company official.
“As soon as we get signoff from the Internal Revenue
Service (IRS) and EPA, we should be up and running in the
next three weeks, potentially at capacity,” Dehran Duckworth,
biodiesel sales manager for Tri-State Biodiesel (TSB),
told OPIS on the sidelines of the 2016 National Biodiesel
Conference & Expo.
“We have a tentative tolling agreement set up to keep the
thing running at capacity from the get-go,” he added. The
plant’s annual capacity had been about 2 million gal.
Bronx, N.Y.-based TSB purchased the facility, Bridgeport
Biodiesel, in early 2014 with expansion in mind. Bridgeport
Biodiesel opened in the fall of 2012, so it was up for only
about a year before the deal was completed.
“We are doing test batches at this moment,” Duckworth
said. “Everything has to be approved, and from that point
on we are set up to go in continuous flow mode at about 1
million gallons per month. This was a pretty heavy lift to get
this done, and it will definitely take a year or two to get our
production solid.” The approval from the IRS involves the
biodiesel tax credit. There are no plans to expand facility’s
capacity any further, he added.
Iowa-based Western Dubuque Biodiesel has been idling
its 30-million gal/year plant in Farley, Iowa, on-and-off since
November, according to a company official, who added that
it has generally become a seasonal routine.
“The plant has been idled at least one week per month
because of market dynamics,” General Manager Tom Brooks
told OPIS on the sidelines of the 2016 National Biodiesel
Conference & Expo. “This happens pretty much every winter.”
However, he acknowledged pressure from sinking petroleum
prices, as well. “The lower price for crude oil is affecting the
economics so customers aren’t pulling the biodiesel out as
quickly,” he said, adding the company has “bought enough
feedstock to run at full capacity for six months.”
The company expects the plant to close the output tap
7 to 10 days per month “until market conditions change,”
according to Brooks.
In May 2014, Flint Hills announced that it would revamp
the plant through Duonix LLC, its joint venture with Benefuel,
to produce biodiesel through the ENSEL technology the
companies have developed.
“Winter months in our industry are historically tough,
because you are going from a 20% blend to a 5% blend,”
he said. “But then if you take the market economics – crude
oil dropping its price, heating oil dropping its price and RINs
(Renewable Identification Numbers) dropping their price – the
economics say you shouldn’t be making biodiesel.”
“There is a normal winding-out process where you have
to go through all the startup procedures and it’s hard to
For the three weeks or so per month that the plant has
been running, it is operating at “probably 75%” of capacity,
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Ethanol & Biodiesel Information Service
February 1, 2016 • Volume 13, Issue 5
according to Brooks, and the situation is expected to
continue for “the foreseeable future.”
“While we have had some construction delays – primarily
due to weather – we are on course to be in operation by this
April,” company CEO Jeff Oestmann told OPIS on the sidelines
of the 2016 National Biodiesel Conference & Expo. “Everyone
involved in the project is dedicated to meeting that goal.”
East Kansas Agri-Energy LLC’s project to integrate
renewable diesel production at its 42 million-gal/yr ethanol
plant in Garnett, Kan., is likely to be completed during the
2016 second quarter.
National Renewable Fuels Averages
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
142.657
157.792
109.185
123.947
E-85 Retail (w/ tax)
168.533
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
336.323
126.751
114.778
--.--
114.816
108.866
Key Renewable Fuels Regional Averages
Northeast
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
150.000
--.--
115.664
153.668
E-85 Retail (w/ tax)
205.684
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
306.000
126.582
133.000
--.--
113.359
109.394
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
150.000
160.000
109.652
144.763
197.332
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
262.500
111.407
--.--
--.--
109.667
107.627
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
Southeast
Gulf Coast
149.000
178.448
108.572
128.286
149.931
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
328.970
106.466
99.358
--.--
108.025
107.680
Midwest
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
135.815
147.235
99.164
118.066
150.182
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
308.474
120.578
130.397
--.--
110.036
110.541
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
Rockies
149.000
163.750
109.591
105.000
153.086
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
--.--
109.450
--.--
--.--
101.100
98.163
E-85 Retail (w/ tax)
West Coast
Ethanol Spot
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
153.750
160.000
126.376
154.350
219.521
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
407.300
160.260
127.000
--.--
144.294
--.--
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From there, it won’t be long until it is operating at full
capacity, Oestmann indicated. “Once we’re in full production,
we intend to focus on the California market,” he said. “Our
renewable diesel will have a very low carbon intensity score
– one of the lowest in the nation. We see great promise
and potential for our renewable diesel in Low Carbon Fuel
Standard markets.”
Plans called for the renewable diesel to be made from the
corn distillers oil already produced at the plant, along with
other feedstocks. The plant initially was to produce 3 million
gal/yr of renewable diesel, with the ability to double the
capacity in the future.
Michael Schneider, mschneider@opisnet.com
Confirmed: Abengoa to sell biofuel business
Spain-based Abengoa is much more than a biofuel
producer, but the financially troubled company recently
confirmed the report noted here a week ago: That it plans to
help right its ship by selling all of its first generation biofuel
business, including its 373 million gal/yr of U.S.-based
ethanol output. Recently the company submitted a restructuring plan to
its board of directors. “The plan confirms that Abengoa will
continue to be a viable and profitable company,” Abengoa
said in a statement. “This plan includes the sale of non-core
assets, including all ... first generation biofuels,” Abengoa
said. Attempts to reach Abengoa for further comment were
unsuccessful by presstime.
Abengoa operates seven U.S. ethanol plants with the
U.S., the largest being its two 90 million gal/yr operations in
Granite City, Ill., and Mount Vernon, Ind. The company also
has plants in Nebraska, an 88 million gal/yr operations in
Ravenna as well as its York plant name-plated at 55 million
gal/yr. Its Colwich, Kan., plant can make 25 million gal/yr as
can its oft-shuttered Portales, N.M., operation.
Presumably, the company will continue to hold onto its
25-million gal/yr Hugoton, Kan., cellulosic ethanol plant
because it is not a first-generation facility. The plant opened
last year with much fanfare but closed in November after
Abengoa’s financial problems emerged. Abengoa may also
retain its small Biomass York pilot plant in York, Neb., that
runs corn stover feedstock.
Abengoa “is a textbook example of a distressed seller,”
said Pavel Molchanov, senior vice president and equity
research analyst at Raymond James. “This means that it’s
fairly desperate to sell off assets, likely resulting in cheap
valuations for the buyers.”
“Given that Abengoa’s biofuel portfolio is diverse – a
range of countries, and also different feedstocks (including
cellulosic) – the logical outcome would be transactions with
several buyers. For the U.S. corn ethanol plants, for example,
February 1, 2016 • Volume 13, Issue 5
top ethanol producers such as Valero and Green Plains
would be credible buyers,” he added.
Rachel Gantz, rgantz@opisnet.com
Spencer Kelly, skelly@opisnet.com
Stock Market Movers:
Neste sets Q4, FY2015 earnings call date;
Gevo gets NASDAQ delisting warning
Finnish company Neste will release its fourth quarter and
full-year 2015 financial results on Feb. 4 and has scheduled a
conference call at 8 a.m. (EST).
Neste produces renewable diesel at four plants. Two of them
are at the company’s Porvoo refinery in Finland, one plant is
in Singapore and the other is in Rotterdam. The combined
production capacity of the plants is approximately 2 million
tons/yr of renewable diesel.
Neste stock closed at 28.29 euros on Jan. 28, up from a
27.41 euro/share close on Jan. 21.
Meanwhile, advanced biofuel producer Gevo has received
notification from NASDAQ, warning that it is not in compliance
Weekly Biofuels Stock Performance
Company
Symbol
1/28/16
1/21/15
change
% change
8.14%
Abengoa
ABGB
ñ
0.93
0.86
$0.07
Aemetis
AMTX
ñ
2.24
2.14
$0.10
4.67%
Amyris
AMRS
ñ
1.53
1.33
$0.20
15.04%
The Andersons, Inc.
ANDE
ñ
27.37
27.06
$0.31
1.15%
Archer Daniels Midland
ADM
ñ
34.70
31.92
$2.78
8.71%
BIOX Corporation
BX.TO
ñ
0.70
0.51
$0.19
37.25%
Bluefire Ethanol Fuels
BFRE
ó
0.00
0.00
$0.00
0.00%
Bunge
BG
ñ
60.08
59.42
$0.66
1.11%
Cosan
CZZ
ñ
3.04
2.66
$0.38
14.29%
Dyadic International
DYAI
ñ
1.57
1.56
$0.01
0.64%
FutureFuel Corp.
FF
ñ
11.92
11.65
$0.27
2.32%
GEVO
GEVO
ñ
0.42
0.39
$0.03
7.69%
Green Earth Technologies
GETG
ó
0.01
0.01
$0.00
0.00%
Green Plains
GPRE
ñ
17.80
17.12
$0.68
3.97%
GreenHunter Resources
GRH
ñ
0.14
0.13
$0.01
7.69%
Neste
NESTE.
HE
ñ
28.29
27.41
€0.88
3.21%
Novozymes
NVZMY
ñ
41.56
39.53
$2.03
5.14%
Pacific Ethanol
PEIX
ñ
3.11
2.95
$0.16
5.42%
Renewable Energy Group
REGI
ñ
6.85
6.73
$0.12
1.78%
REX American Resources
REX
ñ
50.64
47.85
$2.79
5.83%
Solazyme
SZYM
ò
1.67
1.73
-$0.06
-3.47%
Valero Energy
VLO
ñ
64.54
63.43
$1.11
1.75%
DJIA
DJI
ñ
16,069.64
15,882.68
$186.96
1.18%
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Ethanol & Biodiesel Information Service
for continued listing on its exchange, and has until July 25
to regain compliance, the company disclosed in a Jan. 26
Securities and Exchange Commission (SEC) filing.
Gevo said it received notification from NASDAQ on Jan.
25 informing it that for the previous 30 consecutive business
days, the bid price for the company’s common stock had
closed below the minimum $1.00 per share requirement for
continued listing.
Gevo’s stock last traded at or above $1 on Dec. 7, 2015. Its
stock closed on Jan. 28 at 42cts/share, up 3cts from Jan. 21.
To regain compliance, Gevo’s closing stock price must be
$1 or more for at least 10 consecutive business days before
July 25, the filing explained.
Gevo previously received a delisting warning in July 2014.
For its most recent quarter, Gevo reported a $6.5 million
net loss.
Gevo’s strategy has been focused on retrofitting existing
ethanol plants to produce isobutanol. Since the beginning of
June 2014, Gevo has co-produced isobutanol and ethanol
side-by-side at its Luverne, Minn., plant.
Rachel Gantz, rgantz@opisnet.com
Molly M. White, mmwhite@opisnet.com
Inside Washington:
Sources: RFS Amendments Expected to Energy Bill;
Votes Unlikely
Senate debate on a wide-ranging energy bill began last
week, and while not likely to receive votes, a handful of
biofuel-related amendments were filed.
Among the amendments:
•
One from Sens. Chuck Grassley (R-Iowa) and Joe
Donnelly (D-Ind.) that would extend to E15 the Reid
Vapor Pressure (RVP) waiver. E15 blends do not receive
the same 1 psi RVP volatility waiver that is granted to
E10. Under current regulations, summertime volatility
restrictions are in place from June 1-Sept. 15;
•
One from Sen. Bill Cassidy (R-La.) has that would
immediately repeal the Renewable Fuel Standard
(RFS2); and
•
One from Sens. Pat Toomey (R-Pa.), Dianne
Feinstein (D-Calif.) and Jeff Flake (R-Ariz.) that
would eliminate the conventional ethanol portion
of the RFS. That mirrors standalone legislation the
lawmakers introduced in February 2015. Toomey tried
unsuccessfully to attach a similar amendment to a
crude exports bill in October 2015.
“Repealing the RFS as part of the energy bill is a long
shot,” a source following the issue told OPIS last week.
“While it is unlikely that any RFS amendment will even be
called for a vote, it is especially unlikely prior to the Iowa
February 1, 2016 • Volume 13, Issue 5
Caucus next week [on Feb. 1],” the source added.
Debate on the energy bill continues this week.
The energy bill from Senate Energy and Natural Resources
Committee Chairman Lisa Murkowski (R-Alaska) does not
include any biofuel-related measures – since that’s the
jurisdiction of the Senate Environment and Public Works
Committee – but does include a number of provisions,
including accelerating natural gas exports. The committee
passed the bill in July 2015.
Ted Cruz PAC running ad touting call to end
all energy subsidies
With the Iowa Caucus being held on Feb. 1, a pro-Ted
Cruz super PAC is out with a new radio ad, further clarifying
the Republican presidential candidate’s position on the
Renewable Fuel Standard (RFS2).
The ad, sponsored by the Courageous Conservatives
PAC, takes aim at the recent claims that Cruz flip flopped on
ethanol and RFS2. In 2013, Cruz co-sponsored legislation
to immediately repeal the RFS2, but in 2015, he introduced
an overarching energy bill that included a phase-out of the
provision by the end of 2019. He recently clarified that he
would support the provision through its current expiration in
2022.
Recently, Iowa Gov. Terry Branstad (R) told reporters he
wants Cruz defeated in the Iowa Caucus, primarily due to his
opposition of the RFS. Meantime, Republican presidential
candidate and front-runner Donald Trump touted his support
for biofuels in remarks before the Iowa Renewable Fuels
Association (IRFA) in January.
“Ted Cruz opposes all energy subsidies, including oil
subsidies, just like any conservative should. And Cruz
had the guts to say it in Iowa,” the super PAC ad opened,
according to a copy posted on its website. “That terrified
Governor Branstad and the ethanol lobby. They got Trump to
promise bigger ethanol subsidies. And they announced that
Cruz must be stopped at all costs,” the ad noted.
“But America wants a leader who walks tall and stands
up against the lobbyist thugs and the politicians they own.
Branstad and Trump. Branstad Values. Trump Values. Cruz
can’t be bought and they hate him for it because Ted Cruz
always has our back. Always. Every time. For some, this
election is about keeping power and getting more. For the
rest of us, it’s about taking our country back. ... Caucus Night
Is Monday. Don’t Let Them Win,” the ad closed.
According to The Washington Post, the ad will run on 105
radio stations for $40,000.
In response to the ad, Branstad spokesman Ben
Hammes told OPIS that the governor “has been attacked
by Hillary Clinton and now by a group linked to Senator
Cruz. Gov. Branstad serves all Iowans and will never stop
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Ethanol & Biodiesel Information Service
February 1, 2016 • Volume 13, Issue 5
fighting for renewable energy and the importance that
they have on our state and the jobs they provide for Iowa
families,” he added.
though, and NYMEX crude for front-month March futures
gained a more modest 92cts for the day at $33.22/bbl – still
$3.69 higher than it settled a week ago.
IRFA Executive Director Monte Shaw, who has been
involved in every Iowa Caucus since 1988, said “the more
Cruz and his cronies run around saying that he opposes all
oil subsidies, the more Iowan’s ask, ‘Then why hasn’t he
done something about it in the Senate?’ He’s had years to
act. Instead, he pursued a legislative agenda that picked oil
as the winner and homegrown renewable fuels as the loser.
That is his record,” he said.
As things settled Thursday, market players tended to put
the Saudi-Russian hopes more in the “wishful thinking”
category. The facts on the ground still reveal corpulent crude
supply and expectations are that the nation’s crude stocks
will hit 500 million bbl this week. In short, there remain few
signs of a slowing supply pile-up.
“These ads will not fool anyone,” Shaw continued. “Attacking
Branstad smacks of desperation. And attempting to link
Branstad to Trump is just as dumb as it is ridiculous. They
are spending pro-Cruz money to tell the 75% of Republicans
who like the governor to vote for Trump. Branstad never said
that, but this ad does. If campaign malpractice were a crime,
whoever’s idea this was would be arrested,” he added.
Rachel Gantz, rgantz@opisnet.com
Though there is a lack of confidence in oil gains, the thinking
is that RBOB could start to show some disconnect from crude
with its lowest prices in the rearview mirror. February RBOB
futures settled on the Merc at $1.079/gal Thursday, up from a
brief stay under the $1 mark and after climbing back 3.33cts
for the day and up 4.78cts week to week. The soon-to-be
front-month March contract is now more active than February
and it also gained 3.33cts Thursday, to settle at $1.1003/gal
which is up 4.54cts versus a week ago.
Market watchers noted that historically, February and
March tend to be a precarious period to short gasoline.
In Key Commodity Markets:
In finished markets...
Moves in petroleum markets over the last week may
indicate that gasoline lows have been reached on the NYMEX
futures board – at least that is the view of some who watched
the market rally after opening the week on the skids – but
that might not quickly heal spot markets.
Certainly some of the global news boosting crude could
turn on a dime, such as the large crude moves Thursday on
reports of Russia joining Saudi Arabia in an effort to crimp
output and shore up prices. The market faded from its highs,
Another supportive factor for gasoline: The first of the
seasonal RVP transitions are underway. While the futures
markets are rarely affected by Los Angeles gasoline events,
the procession of similar shifts around the country is likely to
keep a floor under futures values.
Part of the futures market rally comes from the speculative
trading community favoring spring-delivery RBOB contracts,
even amid still hefty inventories.
Meantime, any solid gains in Merc futures may not
necessarily fully translate to spot markets. Although the futures
Key Supply and Demand Statistics
Ethanol Supply
Gasoline Supply
Ethanol Production
Ethanol
Current
Last Week
3-Yr Avg
Gasoline
Current
Last Week
3-Yr Avg
Ethanol
Current
Prev Mo
PADD 1 Inventories
7,504
7,390
6,674
PADD 1 Inventories
64,900
62,000
61,067
PADD 1
664
664
682
PADD 2 Inventories
7,025
7,061
6,740
PADD 2 Inventories
58,900
58,400
53,200
PADD 2
27,179
27,604
25,007
PADD 3 Inventories
3,679
4,473
3,467
PADD 3 Inventories
84,700
86,300
79,467
PADD 3
772
868
643
PADD 4 Inventories
357
350
338
7,300
PADD 4
422
447
439
PADD 5 Inventories
2,871
2,666
2,450
PADD 5
557
556
455
Total Inventories
21,436
21,940
19,669
Total Production
29,594
30,139
27,226
PADD 4 Inventories
8,100
8,000
PADD 5 Inventories
31,900
30,300
34,000
Total Inventories
248,500
245,000
235,033
3-Yr Avg
Gasoline Production
Gasoline
Current
Last Week
3-Yr Avg
PADD 1
3,112
3,065
2,765
PADD 2
2,459
2,516
2,358
PADD 3
2,287
2,392
2,126
PADD 4
315
297
319
PADD 5
1,484
1,465
1,507
Total Production
9,657
9,735
9,075
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Ethanol & Biodiesel Information Service
February 1, 2016 • Volume 13, Issue 5
markets drummed up buying, downstream fundamentals still
make it hard to support a similar move at this juncture.
The Chicago CBOB market earlier in the week spent some
time below 80cts/gal – in fact, CBOB prompts briefly tested
historic lows by breaking south of the 75c/gal threshold. This
often volatile gasoline market rebounded from its lows and
traded at 85.28cts outright on Thursday ran a 24.75cts discount
against the Merc benchmark which put the price up 5.08cts on
the day, but just 16 points ahead of its week ago value. Midwest gasoline stocks remain solid and several more
weeks of winter gasoline prices may get pulled up, but not
due to stronger differentials.
it took the week previous week. Running 8.941 million
b/d, gasoline offtake retreated 138,000 b/d, or 1.5%, still
a strong number, but behind the same week last year by
0.9%. Many analysts expect demand will tumble, perhaps
losing 500,000 b/d or so, in the next week in part due to
the winter storm that dampened driving in large areas of the
eastern U.S.
Gasoline prices on the street continued to slip. The U.S.
average posted at the pump reached $1.813/gal Thursday,
according to AAA Fuel Gauge Report, and some believe it
may hit $1.80 before the weekend is out.
In natural gas...
While Chicago seems the most likely candidate, a few
other gasoline markets appear as though they could also
disconnect to the downside from the Merc futures. For
example, Gulf Coast discounts topped a dime and by late
Thursday amounted to 10.25cts on prompt CBOB trades. A
99.78cts/gal outright CBOB price did climb 4.33cts for the
day and 6.04cts week to week.
Natural gas markets took differing turns as last week
neared its close, with moderating winter weather pulling
nearby spot prices lower even as a big storage draw and a
more mixed weather outlook going into February emerged to
support futures.
CBOB in the Group 3 market had discounts topping 20cts
at the time, putting have those markets at prices below $1/gal
on Thursday evening.
The hefty inventory picture remains a key piece of the puzzle
as traders contemplate the coming transition from winter to
spring, and season spec shifts it brings for gasoline. But the
feeling among some is that when the overall petroleum market
does turn – and futures appear to have already started that
process – a quick spike in cash markets may follow.
For now, nationwide gasoline inventories are approaching
record levels, according to weekly EIA figures, having
climbed by 3.5 million bbl in the agency’s latest weekly report
and at 248.5 million bbl hitting the third highest level on
record.
Gasoline demand, by EIA’s count, pulled lower on the
week, but that was not unexpected given the huge jump
At the Henry Hub, next-day natural gas cash values dropped
12cts Thursday to $2.12/mmbtu and that put it down 8cts on
a week-to-week basis. Chicago Citygate gas dropped 9cts on
the day and 11cts over the week, at $2.13/mmbtu. A lot of the
cash trading Thursday got done earlier, before the government
released its bigger-than-expected weekly storage draw, but
sources noted milder winter temperatures in wide areas of the
country ahead of the weekend.
The futures market, on the other hand, got a boost when
EIA reported that a week-to-week gas drawdown of 211
bcf took place, about 3% more than analysts and market
watchers generally anticipated. In fact the draw, the largest of
this winter season so far, helped NYMEX natural gas futures
post its seventh positive trading day in a row. At $2.182/
mmbtu Thursday, Merc gas picked up 2.5cts on the day and
ran 4.3cts higher week to week. Cooler weather forecasts earlier in the week that helped
support gas prices also started to give way to warmer
Ethanol vs. Spot Unleaded and “BOBs” in Key Markets
New York
Chicago
Los Angeles
Note: OPIS Refined Spots and Ethanol averages are based on full-day prompt assessments for each market.
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Ethanol & Biodiesel Information Service
medium term projections and that that dulled the impact of
the EIA report.
The large draw on gas stocks still did not have traders
popping any champaign corks, the overall sentiment being
that one week of steep natural gas depletions did not change
the heavy overall supply picture. EIA figures for the week
have natural gas stocks still running 21% higher than this
time in 2015 and 16% above the 5-year average. The blizzard that blanketed the Northeast with heavy
snowfalls last weekend appeared to have little impact on
prices or production. “Production remained strong during
the storm, even in the northeastern areas” said EIA in a
midweek report. In the past, low temperatures and storms
had caused freeze-offs, but the agency reported dry natural
gas production up 0.4% against the previous week, which
also outpaced a year ago by 0.1%.
However, gas consumption dropped 5.4% from the week
before, despite, as EIA noted, the winter storm in the east.
Meantime, the six-month NYMEX futures strip averaged
nearly $2.3067/mmbtu at Thursday’s settle, up more than
4.78cts from a week ago and holding a 6.37cts premium over
the Henry Hub cash market.
In corn...
Corn markets remained steady and sturdy through most
of the week but they took a softer turn Thursday. CBOT
front-month March corn contracts dropped 3.75cts on the
day and at a $3.655/bu settle that took the contract down
1.5cts week-to-week. May corn gave up 4cts in CBOT trading
Thursday, settling at $3.705/bu, and that is 1.25cts from a
week ago.
February 1, 2016 • Volume 13, Issue 5
The global market and questions about soft worldwide
demand held sway over the market through a good part of the
week. China reportedly ordered 1.2 million tons of corn for the
2016 first-quarter, but most of that from Ukrainian sources.
Also, reports indicated China is attempting to cut corn prices
at home in an effort trim its reliance on imports.
Elsewhere, Argentina is reportedly losing some corn crops
as it struggles with drought, but Brazil is still looking at a
bumper crop with wet El Nino weather that has so far avoided
some of the Argentine fields. A drought in South Africa will cut its corn production 25%,
according to reports from that country.
Domestically, a couple weeks of lower corn-fed ethanol
production in government reports put some weight in corn
prices by midweek.
Analysts at BMI Research expect U.S. corn will be a bit
cheaper than previously forecasted for this year, looking for
a strong dollar to help keep a lid on prices over the weeks
ahead. The group expects corn to hold support at $3.50/
bu with trading floating around spot levels as the planting in
Brazil, Argentina and other South American fields start up.
Spot corn buying in the U.S. remains very lax by most
reports, some citing heavy ethanol stocks that have those
fuel producers holding off on transactions. Kansas City No.
2 yellow corn trucks eased up 1.5-3.5cts week to week, at
$3.655-$3.705/bu.
In Chicago, No. 2 yellow corn talked from $3.545-$3.815/
bu retreated 1.5-2.5cts on the week.
Plant Profitability
Biodiesel Gross Margins for Midwestern Plants ($/gal)
Ethanol Gross Margins for Midwestern Plants ($/gal)
*Biodiesel production margin calculated from cash feedstock costs and sales values for
soy methyl ester biodiesel plants and are estimates of industry trends under current market
conditions. Profits for any given biodiesel plant could be higher or lower.
*Dry Milling margin calculated from cash feedstock and product sales values for wet and
dry-mill plants and are an estimate of the industry trend under current market conditions.
Profits for any given ethanol plant could be higher or lower.
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February 1, 2016 • Volume 13, Issue 5
In biodiesel...
The petroleum market rally over the last week afforded
some room for higher B100 rack prices as well.
On average, B100 priced at the rack gained 3cts week-toweek, averaging $3.363/gal nationally by Thursday. At least
some believed momentum for biodiesel values came from
the fact that a rally off the lows in petroleum markets helped
on-road petroleum diesel prices jump 13.78cts over the same
week, lately averaging $1.08/gal.
The premium for biodiesel over diesel at the rack ran
$2.283, or about 4.5% less than it stood a week ago, but
with the dollar blending credit factored in as well as EPA’s D4
renewable identification number credits lately trading around
74cts/RIN – or about $1.11/gal of biomass-based diesel – the
premium could pare back to 17.3cts. That is about half the
calculated B100 rack premium reported a week ago.
In DDGs...
Dried distillers grains have the support of ethanol plants
trimming output for two weeks in a row now, according to
National Renewable Fuel Feedstock/Co-Product Price Index
Feedstock/Co-product
Location/Source
Spot Price
Previous
4-Wk. Avg.
Palm Olein
US/Gulf Coast
$0.3016/lb
$0.3016
$0.3028
Soybean Oil - Crude De-gummed
Central Illinois
$0.2937/lb
$0.2831
$0.2888
Soybean Oil - Crude Degummed
Central Illinois - USDA
$0.2956/lb
$0.2881
$0.2887
Soybean Oil - RBD*
Central Illinois - USDA
$0.3187/lb
$0.3081
$0.3138
Canola Oil
West Coast
$0.3737/lb
$0.3581
$0.3625
Canola Oil
Midwest
$0.3487/lb
$0.3331
$0.3275
Corn Oil - Crude
Midwest
$0.4050/lb
$0.4050
$0.4025
Corn Oil - Refined
Midwest
$0.4950/lb
$0.4950
$0.4900
Corn Oil - Distillers
Midwest
$0.2425/lb
$0.2400
$0.2384
Beef tallow
Chicago
$0.2400/lb
$0.2300
$0.2325
Choice White Grease
Chicago
$0.2275/lb
$0.2200
$0.2144
Poultry Fat (Low FFA)**
Southeastern US
$0.2350/lb
$0.2350
$0.2275
Yellow Grease
Illinois
$0.1925/lb
$0.1925
$0.1906
Methanol
US Gulf Coast
$0.4250/gal
$0.4200
$0.4438
Soy Meal (Hi-Pro)***
Illinois Truck
$283.00/ton
$280.00
$282.00
$3.8225
Corn
Central Illinois
$3.9000/bu
$3.8800
Soybeans
Central Illinois
$8.9800/bu
$8.8900
$8.8925
Crude Glycerin (80%)
FOB Midwest
$0.0738/lb
$0.0738
$0.0769
DDG-S (Distillers Dried Grains w/ Solubles)
Eastern Cornbelt - USDA
$133.7500/ton
$132.5000
$132.5000
Corn
Kansas City - USDA
$3.6800/bu
$3.7050
$3.6313
ULSD
OPIS National Average
$1.0261/gal
$0.8981
$0.9808
RBOB
OPIS National Average
$1.0588/gal
$1.0395
$1.1050
Ethanol
OPIS National Average
$1.4266/gal
$1.3531
$1.3478
Unleaded RFG
OPIS National Average
$1.0852/gal
$1.0306
$1.0696
Natural Gasoline
Mt. Belvieu Non-TET
$0.7225/gal
$0.6513
$0.7218
Natural Gasoline
Conway In-well
$0.7188/gal
$0.6388
$0.7186
Ethanol RINs (Current Year)
OPIS National Average
$0.6750/RIN
$0.6438
$0.6710
Ethanol RINs (Previous Year)
OPIS National Average
$0.6750/RIN
$0.6438
$0.6713
Cellulosic RINs (Current Year)
OPIS National Average
$1.3300/RIN
$1.3300
$1.3300
Cellulosic RINs (Previous Year)
OPIS National Average
$0.6400/RIN
$0.6400
$0.6400
Biodiesel RINs (Current Year)
OPIS National Average
$0.7400/RIN
$0.7013
$0.7260
Biodiesel RINs (Previous Year)
OPIS National Average
$0.7350/RIN
$0.7050
$0.7256
Advanced Biofuel RINs (Current Year)
OPIS National Average
$0.7300/RIN
$0.6925
$0.7150
Advanced Biofuel RINs (Previous Year)
OPIS National Average
$0.7200/RIN
$0.6900
$0.7119
CA LCFS Carbon Credit
California
$126.00/mt
$120.50
$121.2500
CA LCFS Carbon Intensity
California
$0.0103/CI
$0.0098
$0.0099
*refined, bleached, deodorized **free fatty acids ***high protein
Data provided, in part, by World Energy, www.worldenergy.net
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EIA, and thinner margins, but some question the whether its
current premium versus corn is justified. DDG prices ran flat
to marginally higher over the week, but export slots are tight
and shipping more costly.
FOB Iowa DDG quotes running $115-$127/ton had the
low slipping back by $5 on the week with top end of prices
holding steady. At the same time, Minnesota DDGs from
$115-$125 added $3-$5 over the week. Eastern Corn Belt
DDG values gained $8 to $130 but the highest price held
stead from a week ago at $140.
The western area of the Corn Belt had Kansas DDGs once
again holding steady from a week ago, at $140-$158, and
Nebraska at $125-$145 up $2 at the bottom of the range with
top unchanged on the week.
In delivered markets, California DDGs talked $174-$185
held steady to up $1, while the Pacific Northwest added $1$7 over the week at $175-$182.
DDG activity remained thin and there is a sense that
consumers might be holding off on big buys to see if China
does indeed slap on import penalties that might weigh on
U.S. DDG values. Word on the import duties may come as
early as March 20, but no sooner.
In natural gasoline...
February 1, 2016 • Volume 13, Issue 5
That, however, may be premature. The temperatures up the
East Coast have risen back above 40 degrees Fahrenheit and
there has not been any confirmation of an OPEC meeting.
The downward trend in natural gasoline may have been
halted but the bulls have yet to prove that higher prices are
here to stay. In ultra-low-sulfur diesel...
The diesel supply situation turned in a more balanced
direction over the last week as some of the oversupply
worked lower, but total U.S. inventories remain well above
where they were a year ago.
The EIA reported a net draw in total diesel inventory for
the second week in a row, and the drop over the last week
was deemed more than expected with distillates as a whole
sliding 4.1 million bbl week-to-week.
The ultra-low-sulfur diesel segment supply drew off 2.709
million bbl during the week, but the 137.886 million bbl in
storage still represented a 22% year on year surplus. Every
region except the West Coast and Rockies remained well
ahead of year ago ULSD supply, led by the Central Atlantic
region that dropped almost 1.35 million bbl week-to-week but
still held 131% more supply than a year ago.
The events that the market was looking for occurred from
Jan. 23 to Jan. 28 – the record-setting blizzard from the MidAtlantic States up through New York, increasing demand for
NGLs, including natural gasoline.
The vast bulk of the weekly diesel decline was from the
East Coast storage. Perhaps some stockpiling ahead of
the blizzard accounts for the EIA’s robust demand figure
of 4.005 million b/d. Refiner attempts to keep gasoline
output firm amid lower runs are showing up in softer diesel
production – the latest data have total distillate down
100,000 b/d after 200,000 b/d or so drops in each of the
two previous weeks.
The other event was a report of a meeting planned between
Russian oil officials and OPEC members in February to talk
over possible cuts in oil production. The report sent oil and
products futures surging, boosting natural gasoline with them. ULSD futures which managed to climb back above $1/
gal with a run higher at midweek and by Thursday tacked
on another 57 points, to put February Merc contracts at
$1.0309/gal.
After a period of declining prices and domination by market
bears, it would be understandable if the price jumps have
seemed to turn the tide and put the bulls back in control.
The futures move helped distillate cash trading in the Gulf
Coast leave multi-year lows behind by Thursday. At 99.57cts/
gal for the day, ULSD cash deals in the Gulf jumped 13.86cts
The average natural gasoline price in Mt. Belvieu, Texas
advanced to 72.25cts/gal Thursday, up from 65.125cts/gal on
Jan. 21 and from 69.625cts/gal the week before that, on Jan. 14.
European Biodiesel Spot Markets
Rotterdam FAME ($/gal)
Rotterdam RME/Gasoil ($/gal)
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week-to-week. Chicago ULSD last priced $1.0347cts/gal
outright surged back by 14.22cts on the week.
Still, retail diesel prices continued to slip, averaging $2.059/
gal at the nation’s pumps by Thursday, down nearly 20cts/gal
over the past month.
European, Brazilian and CBI Markets:
Rotterdam
RME
FAME
Ethanol T2
$2.80
$2.49
$2.25/€2.08
Prices in U.S. $/gal., 1/28/16. Data provided, in part, by Starsupply Renewables,
www.starsupply.ch and SCB & Associates, www.starcb.com
European Markets
Members of the German biofuels industry promoted the
introduction of a European-wide greenhouse gas (GHG)
reduction obligation for fuels at a recent conference in Berlin.
The groups also called for enhanced climate protection
on the basis of continuous increases of the existing GHG
reduction quota in Germany until 2020.
The conference was organized jointly by the German
BioEnergy Association (BBE), the Union for the Promotion
of Oil and Protein Plants, the German Bioethanol Industry
Association, the Association of the German Biofuel Industry
and the German Biogas Association.
Since the beginning of 2015, the German petrol industry
has been legally obliged to reduce the GHG emissions of
their transport fuels by 3.5%, according to the groups.
“As a result of the conversion from an energy-based biofuel
quota to the respective GHG quota, the biofuel share in fossil
fuels has decreased,” they said.
The legal requirement could be met with a smaller amount
of biofuel, they added, as the GHG balance of biodiesel and
ethanol has improved significantly over recent years.
“From the point of view of the biofuel sector, the decision
to extend the oil industry’s obligation to reduce their
GHG emissions to up to 4% by 2017, as stipulated by the
February 1, 2016 • Volume 13, Issue 5
amendment of the Federal Emissions Protection Law,
is not enough,” said BBE Chaiman Artur Auernhammer.
“The quota has to be raised earlier and include stepwise
increases each year if we want to realize the climate
protection targets.”
In order to enhance climate protection through sustainably
produced biofuels in the transport sector on a broader scale,
he added, the petrol industry throughout the European
Union must be obliged to strengthen its GHG reduction
commitment.
A general point of criticism of the biofuel industry concerns
the lack of planning certainty for the period after 2020,
according to the groups.
The amendment to the EU Renewable Energy Directive
(2009/28/ EC) and the EU Fuel Quality Directive (2009/30
/ EC), which entered into force in September 2015, does
not extend beyond the year 2020,” they said. “At the same
time, the period between 2016 and 2020 does not provide
the prospects needed for investments in a sustainable and
economic production on an industrial scale.”
Auernhammer said that there is a need “for a continuous
technology-open competition in the biofuel sector beyond
2020 in which biofuels of the first and the second generation
can contribute to climate and resource protection.”
He added that “certified sustainable biofuels from Europe
must be a key element in the European decarbonization
strategy both at present and beyond 2020.”
Market update
Biodiesel prices moved upward over the past week.
RME FOB ARA had a bid-ask range at $828-$848/mt
at the Jan. 28 close, about $9/mt higher than last week’s
figures. SME FOB ARA had a bid-ask range of $758-$778/
mt, up about $17 from the previous week. PME’s range
of $663-$683/mt jumped about $37/mt from last week’s
figures. FAME 0 FOB ARA had a range of $734-$754/mt,
about $13/mt higher than last week’s figures.
Brazil and CBI Ethanol Spot
Anhydrous Ethanol FOB Santos vs. NYH, Tampa Spot ($/gal)
Anhydrous vs. Hydrous FOB Santos ($/gal)
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The upward movement came as Rotterdam gasoil jumped
about $49 to at some $308/mt on the week ended Jan. 28.
Prices are supplied by SCB Renewables.
Michael Schneider, mschneider@opisnet.com
Brazil and CBI Markets
Anhydrous Ethanol $1.70344-$2.00627 Hydrous Ethanol $1.64665-$1.79807
(FOB Santos, 1/28/16, prices in U.S. $/gal.)
Ethanol inventories in Brazil’s South Central region
dropped by 1.06 billion liters during first-half January.
While that is not significantly higher than the inventory
draw witnessed during the same period last year (999.36
million liters), hydrous ethanol inventories in particular
were already lagging last year’s levels, and now the yearon-year gap is even wider.
Figures from Brazil’s Ministry of Agriculture website show
South Central hydrous inventories at 2.54 billion liters at
mid-January 2016, which represents a 38.7% drop from 4.14
billion liters at the same point last year (versus a year-on-year
drop at end-December of 33.2%). The hydrous inventory
draw during first-half January was 615.9 million liters this year
versus 579.1 million liters last year.
In 2015, hydrous ethanol was competitively priced versus
gasoline in Brazil, resulting in record sales of hydrous ethanol
as consumers chose the renewable fuel over the fossil fuel to
fill up their flex-fuel vehicles. One ramification of those steady
sales has been the sizable drawdown of hydrous ethanol
inventories, with South Central stocks at the end of 2015
representing the lowest end-December regional inventories in
four years.
However, motorists’ demand for hydrous ethanol is seen
declining as its price has become less competitive versus
gasoline.
The drop in demand was already witnessed late last year
when distributors’ monthly hydrous ethanol sales peaked
at 1.74 billion liters in October and then dropped to 1.41
billion liters in November. Figures for December are not yet
available.
Furthermore, recent figures from Brazil’s National Oil, Gas
and Biofuels Agency (ANP) show hydrous ethanol pump
prices averaging 2.62 reals/liter in the major São Paulo
consuming center, putting its price at 74% of the price of
gasoline. Because of its lower fuel efficiency, hydrous ethanol
loses competitiveness when its price surpasses 70% of the
price of gasoline.
In Brazil, anhydrous ethanol gets blended into gasoline,
currently at a blend rate of 27%. South Central anhydrous
inventories also are down year on year, but not to the same
degree as hydrous inventories. Government figures show
regional anhydrous inventories at 3.03 billion liters at midJanuary 2016, representing a 7.9% drop from 3.28 billion
liters at the same time last year.
February 1, 2016 • Volume 13, Issue 5
The anhydrous inventory draw during first-half January
2016 was 442.9 million liters, which was pretty much on par
with the draw of 420.3 million liters in first-half January 2015.
The hydrous and anhydrous inventories are significant
since most South Central ethanol mills wrapped up the
2015/2016 sugarcane harvest in December, meaning that
Brazil will rely primarily on ethanol inventories and imports
until the 2016/2017 sugarcane harvest gets underway.
However, market sources note that this year’s interharvest
period could be shorter than last year’s.
“The biggest change is that Brazil will start crushing a lot
earlier this year. The plan is to start crushing the ‘old crop’ in
March and then move straight into crushing the ‘new crop’ in
April,” one market participant told OPIS on Thursday.
Along those same lines, one trader said he anticipates that
U.S. ethanol shipments to Brazil during this year’s interharvest
period will be “average to slightly lower than average.”
Brad Addington, baddington@opisnet.com
News of the Week:
Gevo adds one to board of directors
Advanced biofuel producer Gevo has added William Baum
to its board of directors, the company announced.
Baum has worked in the renewable fuels and chemicals
industries the past 18 years, with Verenium Corp., Diversa
Corp. and Genomatica.
“I am very pleased to announce Bill’s appointment
to the board,” said Gevo CEO Patrick Gruber. “Bill has
great relationships with major players in the chemicals
and fuels industry. He brings significant expertise in the
areas of chemicals, strategic alliances, M&A [mergers and
acquisitions] and biobased products that is highly relevant to
Gevo as we continue the commercialization of our isobutanol
and related products,” he added.
House Oversight Committee hearing
on RFS postponed
Due to the impact of the snowstorm that hit the Washington,
D.C., region the House postponed the House Oversight
Committee hearing on the Renewable Fuel Standard (RFS2), a
committee spokesman confirmed to OPIS.
The hearing was scheduled for Jan. 27, and witnesses
representing EPA, Action Aid and the University of Michigan,
among others, were expected.
A rescheduled date has not yet been selected, the
spokesman noted.
GoodFuels Marine receives RSB certification
Netherlands-based GoodFuels Marine, a marine biofuel
company focused on the global commercial fleet, has
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received certification from the Roundtable of Sustainable
Biomaterials (RSB), enabling the company to sell and
promote RSB- certified biofuels to the shipping industry, the
company announced.
The certification has been awarded for two years.
RSB has defined 12 principles to which biomaterials have
to comply to be seen as sustainable and thereby eligible
for the RSB stamp of approval, including the levels of CO2
reduction, human rights impacts and legal criteria.
U.S. biodiesel consumption hit record level
in 2015: NBB
U.S. consumers used nearly 2.1 billion gal of biodiesel in
2015, a new record for the fuel, the National Biodiesel Board
(NBB) said recently, citing EPA data.
“We’re seeing it take hold across the country. Consumers
are seeking out cleaner alternatives to fossil fuels and
they see biodiesel as a high-performing, cost- competitive
alternative to petroleum diesel,” said Joe Jobe, CEO of the
industry’s U.S. trade association. “These numbers also show
without question that the Renewable Fuel Standard (RFS)
is delivering significant volumes of Advanced Biofuel to the
American people. They prove that the RFS is absolutely
working.”
New York ethanol plant fined $87K
for illegal waste disposal
Western New York Energy (WNYE), which operates a
55-million gal/yr ethanol plant in Shelby, N.Y., was fined
87,000 after illegally disposing of industrial waste on its
property, the New York Department of Environmental
Conservation (DEC) announced.
“The investigation ... determined that WNYE and HydroKlean LLC, a company based in Iowa that specializes in
industrial cleaning operations for the ethanol industry, were
disposing industrial wastes generated during bi-annual plant
cleanings,” the DEC explained.
As DEC noted, “high pressure water is used to clean
burned corn out of the evaporators used in production” at
the plant. “The resulting waste wash water, which included
trace amounts of ammonia and diesel range organics and is
considered an industrial waste, was loaded into a vacuum
truck and transported to an area at the rear of the facility and
dumped into the ground,” it noted.
Neste’s renewable diesel being sold
in northern Italy
Finnish company Neste Corp. announced recently that
oil and gas company Tamoil has begun selling arctic
diesel containing Neste’s renewable diesel to its corporate
February 1, 2016 • Volume 13, Issue 5
customers in the northern Italian Alps region.
The fuel contains a minimum of 20% Neste renewable
diesel.
“We are happy to be able to help our customer Tamoil to
be the first in Northern Italy to launch a renewable fuel with
excellent cold properties into the market,” said Kaisa Hietala,
Neste’s executive vice president of Renewable Products.
ADM, Growth Energy top lobbying spenders
during Q4
Archer Daniels Midland and Growth Energy were the top
spenders for lobbying during the fourth quarter of 2015,
according to lobbying disclosure forms made available
recently.
By Jan. 20, firms and their clients were required to submit
their activity for the fourth quarter of 2015 (Oct. 1-Dec. 31)
to the Secretary of the U.S. Senate and the Clerk of the U.S.
House.
Brazil’s mills eke out sugar, ethanol as 2015/2016
cane season winds down
Mills in Brazil’s South Central region continued to process
sugarcane in first-half January, but sugar and ethanol
production has dwindled significantly as a result of most mills
in the region having wrapped up the 2015/2016 cane crush.
The Brazilian Sugarcane Industry Association (UNICA)
released the figures Jan. 26 without any accompanying
commentary.
Regional mills processed 1.82 million tons of sugarcane in
first-half January, representing a 49.15% increase from 1.22
million tons during the same period in 2015.
UAE aviation biofuel initiative launched
Aircraft manufacturer Boeing and a handful of partners
announced recently plans to collaborate on an initiative
to support sustainable aviation biofuel in the United Arab
Emirates (UAE).
The partners are Etihad Airways, Takreer, Total and the
Masdar Institute of Science and Technology.
The project, BIOjet Abu Dhabi: Flight Path to Sustainability,
will engage stakeholders to develop a comprehensive
framework for a UAE biofuel supply chain, Boeing explained.
The effort will focus on R&D, as well as investments in
feedstock production and refining capability.
REG, ExxonMobil to research producing biodiesel
from cellulosic sugars
Biodiesel producer and marketer Renewable Energy Group
(REG) will work with ExxonMobil to research producing
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biodiesel from cellulosic sugars through a fermenting process
of non-food sources and agriculture waste, the companies
said on Jan. 26.
The companies said the research effort will look specifically
at fermenting “real-world renewable cellulosic sugars” that
potentially contain multiple types of sugars and impurities
that could inhibit the process.
“This research is just one way ExxonMobil is working
to identify potential breakthrough technologies to reduce
greenhouse gas emissions, increase energy supplies and
realize other environmental benefits,” Vijay Swarup, vice
president of research and development at ExxonMobil’s
Research and Engineering Company, said in a statement.
ARF launches another ad against Cruz
Pro-biofuels Iowa-based group America’s Renewable
Future (ARF) has launched another radio ad campaign against
Republican presidential candidate Ted Cruz for what it says is
his continued support for oil industry subsidies while calling for
a phase-out of the Renewable Fuel Standard (RFS2).
“We’re seeing a barrage of typical misinformation and
disproven smears by the oil industry and its defenders in a
desperate attempt to confuse Iowa voters and spin the issue
of the RFS,” said ARF State Director Eric Branstad.
Queensland gov’t announces formation of
renewable energy taskforce
The government for the Australian state of Queensland is
leading a public inquiry into establishing a 50% renewable
energy target by 2030, it was announced recently.
“The Palaszczuk Government is committed to increasing
the uptake of renewable energy to create the jobs of the
future, continue to boost investment, act on climate change
and also deliver value for both customers and government,”
said Minister for Energy and Water Supply Mark Bailey.
Managers of Iowa ethanol plant indicted
over alleged tax fraud
A federal grand jury in Iowa has handed up an indictment of
two managers of ethanol production plant Permeate Refining
Inc. for alleged tax fraud, saying they failed to account for
and pay the IRS for income taxes withheld from employees.
According to the indictment filed last week with the U.S.
District Court for the Northern District of Iowa, majority owner
Randy Less, who served as a general partner and manager
of the facility in Hopkinton, Iowa, and corporate officer Darrell
Smith, who also managed Algae Energae LP, failed to pay
Medicare, Social Security and federal income taxes withheld
from employees over a four-year period that began in 2009.
February 1, 2016 • Volume 13, Issue 5
Investors begin mobilizing to help
clean energy transition
More than 500 investors gathered at the United Nations on
Jan. 27 to begin mobilizing the trillions of dollars needed to
help address the transition to clean energy.
The event, organized by nonprofit Ceres, the United
Nations Foundation and the United Nations Office for
Partnerships, comes more than a month after 196 countries,
including the U.S., adopted an “ambitious” climate change
agreement at COP21 in Paris that calls for countries to limit
the collective greenhouse gas emissions increases to 1.5
degrees Celsius.
“Today, I call on the investor community to build on the
strong momentum from Paris and seize the opportunities for
clean energy growth,” said UN Secretary- General Ban Kimoon. “I challenge investors to double – at a minimum – their
clean energy investments by 2020,” Ban said, according to a
press release issued by Ceres.
BMW may be first automaker to approve E25
BMW appears to be the first automaker to approve of
ethanol blends up to 25% in one of its non-flexible fuel 2016
models, according to its owner’s manual.
According to the owner’s manual for the 2016 MINI
Hardtop, obtained by OPIS, “[f]uels with a maximum ethanol
content of 25%, ie, E10 or E25, may be used for refueling.”
Most automakers only support ethanol blends up to E15,
unless the vehicle is a flexible fuel vehicle, which can handle
up to 85% ethanol.
Truck manufacturer PACCAR lauded
at biodiesel conference
Tampa, Fla. – National Biodiesel Board (NBB) CEO Joe
Jobe presented truck manufacturer PACCAR with the Eye
on Biodiesel “Initiative Award” at the 2016 National Biodiesel
Conference & Expo in recognition of the company’s support
of biofuels.
“More than 100,000 trucks join renewable fuel ranks as
PACCAR embraces biodiesel blends in its engines, old and
new,” NBB said. “Considering average mileage, these trucks
alone have the potential to run 12 billion miles annually, and
they are just the tip of the biodiesel vehicle population.”
Canadian biodiesel producer BIOX open
to idea of expanding: CEO
Tampa, Fla. – A recent increase in policy certainty within its
own country and in the United States has Canadian biodiesel
producer BIOX open to the idea of expanding, according to
the company’s CEO.
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Ethanol & Biodiesel Information Service
“If the right opportunity comes around, like everyone else
we want to make good business decisions and make money
doing it,” Alan Rickard told OPIS on the sidelines of the 2016
National Biodiesel Conference & Expo.
BIOX operates a biodiesel plant in Hamilton, Ontario, with
an annual capacity of 67 million liters (18.43 million gal).
Ethanol producers in Mexico’s Veracruz state
land contract with Pemex
February 1, 2016 • Volume 13, Issue 5
Senate Energy Committee spokesman joins
consulting firm
Consulting firm Strategies 360 has hired Robert Dillon,
who most recently was communications director for the
Senate Energy and Natural Resources Committee, it was
announced.
Dillon was also a senior advisor to Committee Chairman
Lisa Murkowski (R-Alaska).
Starting in January 2017, ethanol producers in the
southeastern Mexican state of Veracruz will supply
Mexican state oil company Pemex with 200 million liters of
ethanol a year to blend with gasoline, the Veracruz BioEnergy Institute.
Osiel Castro de la Rosa, director of the institute, said that a
contract is in place to supply Pemex with ethanol for 10 years.
“Remember that there was a drop in sugar prices. This
was the Achilles heel of the sugar agro-industry, and one
of the most viable solutions was to find another use for
this surplus sugar that accumulated for several reasons,”
Castro de la Rosa said.
“At S360, Dillon will focus on strengthening and expanding
the firm’s current government relations, strategic message
development, crisis management, media relations, and
speech and editorial writing practices. He will be working
on energy issues, as well as a broad range of other policy
areas,” Strategies 360 noted.
EPA would evaluate possible shift in
biodiesel tax credit: Official
Tampa, Fla. – A shift making the federal biodiesel tax credit
apply to producers rather than blenders would likely lead to
the EPA examining its rulemaking regarding the fuel’s growth,
an agency official said.
Group lists two FFVs among its least
enviro friendly vehicles
“We would have to look at that,” EPA Senior Policy Advisor
Paul Argyropoulos said in a presentation at the 2016 National
Biodiesel Conference & Expo.
The American Council for an Energy-Efficiency Economy
(ACEEE) released on Jan. 27 its top “greenest” and
“meanest” environmentally friendly vehicles, but two of the
vehicles on its “meanest” list involve flexible fuel vehicles
(FFV), which can handle higher ethanol blends.
Much of the talk at the conference last week focused
on the desire of many attendees for the credit to shift to
producers. It is believed that such a move might lead to a
drop in the volume of imports, and Argyropoulos was asked
if that might affect the EPA’s rulemaking as far as growing the
biodiesel standard.
Among the 12 vehicles that ACEEE deemed least
environmentally friendly – mostly larger SUVs or European
sports cars – were the Ford Transit T150 Wagon FFV and the
Ford Transit T150 Wagon FFV.
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