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...
Veridium Receives Order to Increase Ethanol Production Efficiencies
Veridium Corp. (VRDM.OB) announced its receipt of an order from a Wisconsin based ethanol producer for the second stage of Veridium's patent-pending Corn Oil Extraction Systems(TM). Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG"). Currently, the majority of ethanol production is based on a dry milling technique that utilizes more than 1 billion bushels of corn to produce 3 billion gallons per year of ethanol. The dry mill process converts the starch from the kernel of corn into sugar and then the sugar into ethanol....
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...
ADM Selects Columbus, Nebraska as First Location for Ethanol Expansion
Archer-Daniels-Midland Co. (ADM) announced that it has selected Columbus, Nebraska as the first location for its ethanol capacity expansion. The Company will build a dry corn milling plant with an initial annual capacity of 275 million gallons adjacent to the existing ethanol plant in Columbus. In September, ADM previously announced that it planned to expand ethanol capacity by 500 million gallons through the addition of two dry milling plants at existing ADM ethanol facilities. Construction, expected to be complete in early 2008, is subject to applicable governmental approvals.
EPA Slashes Corn Ethanol Targets Under Proposed Renewable Fuel Standard
Renewable Diesel Takes Smaller Cut Jim Lane “EPA continues to assert authority under the general waiver provision to reduce biofuel volumes based on available infrastructure,” says BIO. “This is a point that will have to be litigated. It goes against Congressional intent.” In Washington, the EPA released its proposed standards for 2014, 2015, and 2016 and volumes for renewable fuels. The volumes, as widely expected, include substantial reductions from the statutory standards in the original 2007 Energy Independence & Security Act. The EPA also released a 2017 proposed standard for biomass-based diesel. Yet, while attracting significant...
Ethanol Stocks Reviewed On Seeking Alpha
With oil and gasoline prices rising ever higher, investors are shifting attention to alternative energy stocks as a promising high-growth sector. A particular area of interest is ethanol stocks and forthcoming ethanol IPOs. Here are companies recently reviewed on Seeking Alpha Archers Daniels Midland Company (NYSE: ADM) Pacific Ethanol (PEIX) Xethanol (XTHN) VeraSun (VSE) MGP Ingredients (MGPI) Aventine Renewable Energy (AVR) Green Plains Renewable Energy (GPRE) Andersons Inc. (Nasdaq: ANDE) Veridium Corporation (VRDM)
The API Bushwhacks Ethanol
Jim Lane Who’s right, in the fight of their lives over E15 ethanol blending? Whose data’s a Looney Tune, whose is from the real-world? Yesterday the American Petroleum Institute, in an apparent impression of Yosemite Sam, held a press conference in DC to highlight a new report from the Coordinating Research Council on E15 ethanol blends. The report is here. The API: Blast your scuppers, now I gotcha, ya’ flea-ridden riff-raff! Use of the ethanol gasoline blend E15 may endanger fuel systems in millions of 2001 and newer vehicles,...
ADM and Siouxland Ethanol Announce Marketing Agreement
Archer-Daniels-Midland Co. (ADM) and Siouxland Ethanol LLC are pleased to announce the formation of an ethanol marketing agreement. As part of this marketing agreement, ADM will market all ethanol produced by Siouxland Ethanol at its forthcoming 50 million gallon Jackson, Nebraska facility. Construction has begun and the plant is expected to be operational in early 2007. In addition to producing ethanol, the plant will produce an estimated 165,000 tons of distiller grains on an annual basis.
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...
Hand Sanitizer: Salvation for Ethanol Producers?
by Jim Lane
If you’ve not heard, NuGenTec is looking for Distillers to help supply Ethanol for Hand Sanitizers in California! We have two automated bottling lines waiting for ethanol to produce 8oz and 16oz gel type hand sanitizers, they write. You can learn more here.
And as we reported this morning, Aemetis (AMTX) is one of those companies jumping into the market, even as transport fuel demand falls off, driving fuel ethanol prices into an all-time low range of around $0.70 per gallon.
The shortage is real
If you’ve been trying to buy hand-sanitizer, it’s been hard to find. Here in Digestville, we’ve...
Aemetis acquires Edeniq for $23.7M
Jim Lane In California, Aemetis (AMTX) will acquire all of Edeniq’s outstanding shares in a stock plus cash merger transaction. In 2015, Edeniq generated approximately $20 million in revenue and $6 million in positive EBITDA. Headquartered in Visalia, California, Edeniq has 30 employees working at advanced research and development facilities, as well as pilot plants funded through grants from the DOE and the California Energy Commission. Under the terms of the agreement, Aemetis expects to issue between one and two million shares of its common stock (depending on whether Edeniq stockholders elect to receive part of their consideration...
Biobased and Biofuel Investments: A System
Jim Lane A Biofuels and Biobased investment primer: An 18-combination, 8-character system for classifying bio investments Here’s our investment primer on how to size up the risks and the rewards and tune them to meet your goals. And, a system for organizing opportunities. So, you’re thinking about investing in bio? Here’s the good news – you’re not alone. Here’s the bad news – you’re not alone. There are retail, private equity, hedge fund, sovereign wealth, strategic, grower, VC and institutional investors snooping around too, and making active investments. For one thing, carbon’s making a comeback as the...
Cosan’s Crush
by Debra Fiakas CFA Last week Cosan Limited (CZZ: NYSE) revealed a decision to delay the spin-off and recapitalization of its natural gas distribution network, COMGAS. Management cited unfavorable capital market decisions. Cosan has a mix of businesses, of which we have been most interested in its Raisen Energia sugar cane agriculture and ethanol production. Raisen is a joint venture with Royal Dutch Shell that was initiated in 2011. The operation squeezes over four million tons of sugar from cane grown in its fields and two billion liters of ethanol each year. The ethanol is sold through Shell’s...
An Interesting Way To Play Cellulosic Ethanol
Last Friday (Feb. 2), the Globe & Mail's business section (the G&M is Canada's top national newspaper) ran an interesting piece by a senior business writer on cellulosic ethanol. I wish there was a way to view this article for free, but, unfortunately, the G&M charges for access to certain of its articles, and this is one of them. The gist of the argument is as follows: (a) forget corn-based ethanol, the future lies with cellulosic (yyaawwnn...); (b) deep down inside, Bush knows this; (c) to make cellulosic ethanol competitive, you need super-enzymes that speed up the process...
Lessons From Tesla: Building An Ethanol Market
Jim Lane E85 ethanol? Been stuck with low sales for years – with producers pointing to “no market access”. Yet, Tesla was faced with “no market access” and built its own market. What lessons can be learned? Last week, Tesla Motors (NASD:TSLA) announced the completion of its transcontinental US Supercharger Corridor, a network of stations that enable Model S owners to (somewhat) rapidly recharge their Teslas on a cross-country drove. And intrepid Tesla blgger Hamish McKenzie relayed the news last week that two Tesla Model S sedans completed a 76-hour coast-to-coast all-electric crossing. The news follows...
California’s Other Ethanol Producers
by Debra Fiakas CFA In the last two posts Pacific Ethanol (PEIX: Nasdaq) and Aemetis, Inc. (AMTX: OTC/BB) got all the attention. Both companies have crafted their facilities to accept lower-cost sorghum as an alternative feedstock, opening up the door to lower carbon intensity measures for their ethanol output. There are other ethanol producers in the state, which we believe are still relying on corn as feedstock. Which companies will remain in operation in California is not yet clear. Standards sets by California Air Resources Board (CARB) for the carbon intensity of alternative fuels favors local producers and...
