cattle feeding

More Than Ethanol at Green Plains

Last week ethanol producer Green Plains (GPRE:  Nasdaq) reported financial results for the quarter ending June 2018.   As expected the company reported a net loss, but actual results were far better than expected.  The news gave traders a reason to celebrate with bids that led to a gap higher at the opening on the first day of trading following the announcement.  Cooler heads came into the market as the day wore on and the stock closed below the open on heavy volume. Nonetheless, the stock finished the week higher and appears prepared to challenge lines of volume-related price resistance in the trading sessions ahead.    There may...
corn pile

A Simple Fix To Farmer’s Tariff Woes?

by Jim Lane As most know by now, the US and China have fired opening salvos in a trade war, with the US targeting a range of commodities including steel and aluminum, and China retaliating with, to date, stiff tariffs on a range of agricultural products, but primarily hitting soybeans and corn because of the volume of trade in those agricultural goods. Overall, China imports $24 billion of agricultural goods from the US and is a leading export market for the US. The trade wars prompted North Dakota farmer Kevin Skunes, president of the National Corn Growers Association, to state: “Farmers are...
Refinery exemptions RFS

Did Trump’s EPA Cost Corn Growers $3.65 Billion In 2017?

by Jim LaneIn Washington, new evidence has appeared that a Trump Administration shift on US low carbon fuel policy may have cost US corn growers an estimated $3.65 billion. The mechanism? A secretive effort by Administration officials installed at the US Environmental Protection Agency that destroyed an estimated 1.37 billion gallons of annual demand for low-carbon renewable fuels, in favor of fossil fuels. Officials at the agency exploited a loophole in US low carbon fuel legislation that allows small oil refineries to gain hardship waivers in cases of severe distress from complying in full with US low carbon fuel laws.  Now, evidence...

EPA Administrator Scott Pruitt Resigns

by Jim Lane In Washington, EPA Administrator Scott Pruitt has resigned. US President Donald Trump announced the exit on Twitter, commenting, “President Donald Trump announced Pruitt’s exit, saying on Twitter “I have accepted the resignation of Scott Pruitt as the Administrator of the Environmental Protection Agency. Within the Agency Scott has done an outstanding job, and I will always be thankful to him for this.” Deputy Administrator Andrew Wheeler becomes acting administrator. The Digest’s Take Elsewhere in the media, it is widely reported that Pruitt was undone by a growing number of controversies and investigations relating to his conduct as EPA Administrator, particularly relating...
for and against oil refinery bailouts

Billionaire Bailouts v. Biofuels

Trump in a pickle: support his beleaguered EPA Administrator over oil refinery bailouts, or rally his Midwestern farm-state base? In Washington, Senator Chuck Grassley of Iowa tweeted: “I’ve supported Pruitt but if he pushes changes to RFS that permanently cut ethanol by billions of gallons he will have broken Trump promise & he should step down & let someone else do the job of implementing Trump agenda if he refuses.” Grassley explicitly called on Pruitt to back a key campaign pledge from 2016 that helped unlock farm state support and propel Trump into the White House. 1/19/16 Trump at IA Renewable fuels summit: EPA...
ethanol ups and downs

Fortunately, Unfortunately: The Spring Saga of American Ethanol

by Jim Lane The ethanol signals from Washington DC are more inexplicably mixed than cocktails with names like Sex on the Beach. Let’s parse through the wigwagging over the future of American biofuels supply and demand — ethanol and otherwise. Fortunately: Trump backs year-round E15 ethanol blends In Washington, President Trump endorsed year-round E15 ethanol availability as an emerging compromise between oil refiners and US farm sector. The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. The RFS originated in a bi-partisan Congress with the Energy Policy Act...
Ethanol Plant

List of Ethanol Stoccks

Ethanol stocks are publicly traded companies whose business involves producing ethanol alcohol (C2H5OH) made from biomass for use as a fuel in gasoline blends. Common feedstocks include corn and sugar cane.  Ethanol is the most widely produced and used biofuel, and all ethanol stocks are also biofuel stocks. Aemetis, Inc. (AMTX) Andersons Inc (ANDE) Archer Daniels Midland (ADM) Bluefire Renewables (BFRE) Cosan Ltd (CZZ) Dyadic International (DYAI) Green Plains Partners LP (GPP) Green Plains Renewable Energy (GPRE) MGP Ingredients (MGPI) Pacific Ethanol (PEIX) REX American Resources Corp. (REX) SunOpta (STKL) If you know of any ethanol stock that is not listed here and should be, please let us know by leaving a comment. Also...

Aemetis’ Cellulosic Ethanol From Orchard Waste Project

by Jim Lane There were more than 100 presentations at ABLC last week and not a clunker amongst them, but if I were to point the reader’s attention at one or two that stood out from the rest because of the short-term or long-term implications, I’d start with the news from Aemetis (AMTX) that they are embarking now on a $158 million cellulosic ethanol plant — to be built in Riverbank, California, in partnership with LanzaTech. Cellulosic ethanol is selling for such a high price in California right now — the value jumps north of $4.00 per gallon at times —...

Novozymes Ignites Yeast Wars

Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) moved into yeast this week with a new organism, Innova Drive. It’s saccharomyces cerevisae — the workhouse yeast that has been powering wine fermentation since the days of Noah and the Ark. But here’s a new strain engineered to cut fermentation times up to two hours, and yield boosts of up to two percent. A 2% yield increase and a 5% faster rate of production — let’s illustrate it — would mean something like 7.1 million gallons per year of more ethanol from the same standard 100 million gallon nameplate plant. Retailing at up to $10 million dollars, per year (yes,...

A Decade Of Unexpected Curves In The Bioeconomy

By Jim Lane Over the years we’ve all seen a lot of curveballs in the advanced bioeconomy. You see companies like Valero, which lobby the United States Congress with unbridled intensity to get rid of the Renewable Fuel Standard, on the verge of becoming the single-biggest producer of RINs in the United States (with news that they might take capacity at Diamond Green Diesel up to 540 million gallons). You see companies like Solazyme which love the Renewable Fuel Standard and drive up to nearly a billion-dollar post-IPO valuation based on delivering fuels at volume, then announcing that there are even...

Green Plains to Adopt Syngenta’s Enogen Corn Ethanol Tech Across Fleet

by Jim LaneGood news arrives from Minnesota that Syngenta has partnered with Green Plains (GPRE) to expand its use of Enogen corn enzyme technology across GPRE’s 1.5 billion gallon production platform. The Enogen backstory Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and creates a win-win-win scenario by adding value for ethanol plants, corn growers and rural communities. We reported in January that Syngenta had reached...

EPA’s 2018 Renewable Fuel Targets Disappoint Producers

In Washington, the Environmental Protection Agency released its final Renewable Fuel Standard renewable volume obligations for 2018. The agency finalized a total renewable fuel volume of 19.29 billion gallons , of which 4.29 BG is advanced biofuel, including 288 million gallons of cellulosic biofuel. As the Renewable Fuels Association explained: “That leaves a 15 BG requirement for conventional renewable fuels like corn ethanol, consistent with the levels envisioned by Congress in the 2007 Energy Independence and Security Act. The 2018 total RFS volume finalized today represents a minor increase (10  million gallons) over the 2017 standards, and a modest increase...

DowDuPont To Exit Cellulosic Biofuels

by Jim Lane In Delaware, DowDuPont (DWDP) announced that it intends to sell its cellulosic biofuels business and its first commercial project, a 30 million gallon per year cellulosic ethanol plant in Nevada, Iowa. The Nevada project is still going through start-up. In an official statement, the company said: As part of DowDuPont’s intent to create a leading Specialty Products Company, we are making a strategic shift in how we participate in the cellulosic biofuels market. While we still believe in the future of cellulosic biofuels we have concluded it is in our long-term interest to find a strategic buyer for our...

Renewable Fuels’ Dunkirk

by Jim Lane It’s been a very busy week in Washington DC, the high point being a letter to seven senators sent late Thursday by EPA Administrator Scott Pruitt, who took significant (and as of a few days ago, unexpected) steps toward strengthening the foundation for ethanol and renewable fuels. The truth? It’s a Trump Administration back-down. EPA overreached on de-clawing the Renewable Fuel Standard on behalf on some grumpy oilpatch donors (known as GODs), and the Trump Administration managed to revive a Grand Alliance around renewable fuels — one that now includes almost 40 members of the United States Senate,...

Ethanol Blends: High Octane, Low Carbon, High Controversy

by Jim Lane, Biofuels Digest For every ethanol blend everywhere these days, there seems to be a war on. A war in India over 22% blends. A war in Brazil over exactly what baseline blend ratio (somewhere int he 20s) is ideal. A war on in Europe to roll back first-gen ethanol to around 2% blending. A war in New South Wales, Australia over whether there should be any ethanol mandating at all. A war in the US as conservatives aim to haul belnding down to 9.7% while ethanol producers have clearly aimed at a 15% baseline blend. And so on and...

REX American: Culturally Frugal

by Debra Fiakas CFA Among the surviving public ethanol producers in the U.S. is REX American Resources (REX:  NYSE).  Based in Ohio, REX American is an ethanol fuel producer with owned nameplate capacity near 215 million gallons per year.  Additionally, the company distributes by-products of the ethanol production process, including distiller grains and non-food grade corn oil.  REX has full or partial ownership in six ethanol production plants located in the Ohio, South Dakota, Illinois and Minnesota. The company relies on corn feed stock for its dry milling ethanol production process.  Like any other ethanol...