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Ethanol & Biodiesel Information Service
Pricing, News and Analysis for Buying and Supplying Ethanol-Blended Fuel and Biodiesel
November 24, 2014 • Volume 11, Issue 47
Ethanol Futures (cts/gal contract price)
December 2014
CBOT
194.80
January 2015
February 2015
174.70
167.90
Settlement Thursday, November 20, 2014
March 2015
166.40
Source: Chicago Board of Trade
Ethanol & Gasoline Component Spot Market Prices
U.S. RINs (prices in U.S. $/RIN)
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
U.S. Ethanol RINs
Current Yr
0.4775-0.5200
0.5075-0.5300
0.5400-0.6000
0.5650-0.5850
0.5700-0.5800
0.54750
Previous Yr
0.4850-0.5050
0.5000-0.5200
0.5300-0.5800
0.5300-0.5800
0.5650-0.5750
0.53700
U.S. Cellulosic RINs
Current Yr
N/A
N/A
N/A
N/A
N/A
N/A
Previous Yr
0.4150-0.4250
0.4150-0.4250
0.4150-0.4250
0.4150-0.4250
0.4150-0.4250
0.42000
U.S. Biodiesel RINs
Current Yr
0.5200-0.5550
0.5250-0.5700
0.5500-0.6500
0.5800-0.6100
0.6000-0.6100
0.57700
Previous Yr
0.5000-0.5100
0.5100-0.5300
0.5400-0.6000
0.5600-0.5900
0.5650-0.5750
0.54800
U.S. Advanced Biofuel RINs
Current Yr
0.5100-0.5300
0.5150-0.5700
0.5400-0.6300
0.5700-0.5900
0.5900-0.6000
0.56450
Previous Yr
0.4900-0.5050
0.5100-0.5275
0.5400-0.5800
0.5600-0.5700
0.5650-0.5700
0.54175
Thurs. 11/20
Wkly. Avg.
Chicago (prices in U.S. $/gal.)
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Ethanol
2.4500-2.4650
2.4850-2.4950
2.4650-2.4800
2.3800-2.4500
2.3000-2.5000
2.44700
DP ETH
2.4600-2.4700
2.4900-2.5100
2.4700-2.5000
2.4000-2.5500
2.3900-2.5300
2.47700
B100 SME
2.8400-2.9500
2.7800-2.9500
2.8400-2.9400
2.8300-2.9400
2.8400-2.9500
2.88600
RBOB Unl
2.0725-2.0825
1.9713-1.9738
1.9732-1.9832
1.9638-1.9738
1.9676-1.9776
1.99393
RBOB Pre
2.6775-2.6875
2.5763-2.5788
2.5782-2.5882
2.5738-2.5838
2.5626-2.5726
2.59793
CBOB Unl
2.0275-2.0375
1.9263-1.9288
1.9282-1.9382
1.9238-1.9338
1.9126-1.9226
1.94793
ULSD
2.6411-2.6511
2.4689-2.4789
2.4313-2.5063
2.5940-2.6040
2.6300-2.6600
2.56656
Chicago Rule 11 (prices in U.S. $/gal.)
Current Yr
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
2.3500-2.4500
2.4200-2.4800
2.4600-2.5000
2.3300-2.5100
2.3600-2.4300
2.42900
Ethanol Market Overview:
Ethanol rallies back after DOE dump
The pendulum of ethanol prices swung wide
and often over the last week, particularly after
the government’s weekly ethanol data report
offered differing data points, and perhaps ignited
some knee-jerk reactions to them.
Physical ethanol markets, particularly in the
more liquid Chicago area, continued to rally
over the first half of the week right up until DOE
released its supply and output figures. Then the
market spiraled lower in a scramble of selling.
Since then, cooler heads prevailed and, perhaps,
a deeper look at the numbers, too, and by
presstime spot prices indicated that another run
higher appeared in the works.
Prompt same-day ethanol transfers at the
Chicago area’s Argo terminal fetched up to
$2.55/gal at one point at midweek, jumping as
much as 30cts week-to-week. But after weekly
figures from DOE hit the street and revealed
near-record ethanol production, offers plunged
to $2.40/gal just a few hours later.
In-tank transfer for a several days to a week
forward traded over $2.49/gal earlier in the week
and still fetched $2.45/gal at around the time of
the report’s release, sank under $2.40/gal later
the same day, with $2.38/gal getting done and
offers floated in the middle $2.30s/gal.
The fall-off at midweek became fully evident
in rail-related Rule 11 trades to the Windy City
area. Pre-report trading for prompt shipping at
$2.50-$2.51/gal became a distant memory by
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..............................................13
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
November 24, 2014 • Volume 11, Issue 47
Ethanol & Gasoline Component Spot Market Prices (prices in U.S $/gal.)
Gulf Coast
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
Ethanol
2.5300-2.5600
2.4100-2.4800
2.3800-2.4300
2.3200-2.3800
2.2700-2.3900
2.41500
B100 SME
2.8500-3.0000
2.8500-2.9500
2.8800-2.9800
2.8700-2.9700
2.8800-2.9800
2.92100
RBOB Unl
1.8650-1.8750
1.8013-1.8113
1.8482-1.8582
1.8488-1.8588
1.8301-1.8401
1.84368
RBOB Pre
2.0950-2.1050
2.0313-2.0413
2.0782-2.0882
2.0788-2.0888
2.0601-2.0701
2.07368
CBOB Unl
1.8125-1.8675
1.7788-1.8138
1.8082-1.8232
1.8138-1.8338
1.8026-1.8101
1.81643
Unleaded
1.8825-1.8950
1.8363-1.8663
1.8482-1.8732
1.8563-1.8788
1.8476-1.8526
1.86368
ULSD
2.3036-2.3061
2.2814-2.2864
2.2588-2.2638
2.2240-2.2390
2.2500-2.2525
2.26656
61ULSD
2.3036-2.3061
2.2814-2.2864
2.2588-2.2638
2.2240-2.2390
2.2500-2.2525
2.26656
New York
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
Ethanol
2.4400-2.4600
2.4000-2.4500
2.2500-2.3000
2.1500-2.2000
2.3500-2.3700
2.33700
ITT ETH
2.4500-2.4700
2.4100-2.4600
2.3900-2.4300
2.1700-2.2500
2.3700-2.4100
2.38100
Ethanol Fwd
2.1500-2.2500
2.2400-2.2900-
2.1900-2.2400
2.0800-2.1500
2.2900-2.3100
2.21900
B100 SME
2.9700-3.0700
3.0000-3.1000
3.0300-3.1300
3.0000-3.1000
3.0500-3.1500
3.06000
RBOB Unl
2.1175-2.1275
2.0563-2.0913
2.0732-2.0832
2.0713-2.0813
2.0516-2.0616
2.08148
RBOB Pre
2.2875-2.2975
2.3063-2.3163
2.2982-2.3082
2.3088-2.3188
2.2926-2.3026
2.30368
CBOB Unl
2.1175-2.1275
2.0563-2.0913
2.0732-2.0832
2.0713-2.0813
2.0516-2.0616
2.08148
CBOB Pre
2.2875-2.2975
2.3063-2.3163
2.2982-2.3082
2.3088-2.3188
2.2926-2.3026
2.30368
Unleaded
*****–*****
*****–*****
*****–*****
*****–*****
*****–*****
*****
ULSD
2.4561-2.4661
2.4439-2.4539
2.4063-2.4163
2.3840-2.3940
2.3950-2.4050
2.42206
Los Angeles
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
Ethanol
2.7000-2.7200
2.7100-2.7500
2.6900-2.7250
2.5500-2.6700
2.5900-2.6500
2.67550
CARBOB - R
1.9625-1.9825
1.9363-1.9463
1.9782-2.0032
1.9988-2.0038
1.9776-1.9876
1.97768
CARBOB - P
2.0725-2.0925
2.0463-2.0563
2.0832-2.1082
2.1038-2.1088
2.0826-2.0926
2.08468
ULSD
2.4111-2.4211
2.3388-2.3488
2.3176-2.3276
2.2837-2.2937
2.3080-2.3205
2.33709
Nebraska (fob Railcar)
Ethanol
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
2.3300-2.3600
2.3600-2.4200
2.3800-2.4000
2.3000-2.4300
2.2900-2.3300
2.36000
Tampa
Ethanol
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
2.5500-2.6000
2.6000-2.6500
2.6500-2.7000
2.5600-2.6500
2.5600-2.5900
2.61100
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
2.4700-2.5400
2.5000-2.5500
2.5000-2.5500
2.4000-2.5000
2.3800-2.4300
2.48200
Dallas
Ethanol
San Francisco
Ethanol
Fri. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
2.7000-2.7200
2.7100-2.7500
2.6900-2.7250
2.5500-2.6700
2.5900-2.6400
2.67450
Fri. 11/07
Mon. 11/10
Tues. 11/11
Wed. 11/12
Thurs. 11/13
Wkly. Avg.
2.5900-2.6200
2.6250-2.6800
2.6500-2.7000
2.5400-2.6200
2.5800-2.6000
2.62050
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. 11/14
Mon. 11/17
Tues. 11/18
Wed. 11/19
Thurs. 11/20
Wkly. Avg.
Carb Credit
26.000-27.000
25.500-26.500
25.500-26.500
25.500-26.500
25.500-26.500
26.1000
CI Pts
0.0021-0.0022
0.0021-0.0022
0.0021-0.0022
0.0021-0.0022
0.0021-0.0022
0.00215
CC CPG Dsl
0.0034-0.0036
0.0034-0.0035
0.0034-0.0035
0.0034-0.0035
0.0034-0.0035
0.00342
CC CPG Gas 0.0038-0.0039
0.0037-0.0039
0.0037-0.0039
0.0037-0.0039
0.0037-0.0039
0.00382
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
November 24, 2014 • Volume 11, Issue 47
later afternoon, when $2.33-$2.35/gal reportedly traded
hands at last word.
The one market that gave up a lot of ground even before
DOE figures went public for the week was New York Harbor,
where November ethanol barges plunged to $2.25/gal –
though trading remained thin to nonexistent – only to see
price talks shift down another dime after the report. But it
also snapped sharply higher in the latter part of the week,
with December barges once talked around $2.10/gal pulling
into the upper $2.30s/gal.
And Chicago in-tank trades for the following week jumped
back up to $2.50/gal in a revived rally that had presstime
talks moving to new highs for the week – at $2.60/gal and up.
What caused the Jekyll-and-Hyde ethanol market?
First, the market appeared to focus more on the unanticipated
size and rapidity of the ethanol producer comeback reported
by DOE. The agency had plants making 970,000 b/d, almost
a record high, after adding 24,000 b/d, or 2.5%, for the week
ending Nov. 14. Since the first week of October, ethanol output
is up four of the last five weeks, climbing 9.6% since then, and
now runs 7.3% ahead of the same week last year.
The release of the number seemed to stop a November
ethanol rally in its tracks. Though some conceded that the
end of some seasonal plant maintenance as well as generally
rising ethanol spot prices did encourage more output, as
expected – it was far more than most anticipated from DOE.
However, a more sober look at DOE figures revealed a
bullish patina. It may have taken some time to notice that after
a couple weeks of sturdy builds, but the weekly report also
had overall ethanol inventory down 2.1% nationally week-toweek, sinking 370,000 bbl, with 17.335 million bbl in storage.
In addition, blending numbers from DOE appeared slack, at
best, lately.
Total blender inputs of ethanol dropped 6,000 b/d from the
week before, and at 854,000 b/d, ran just about on par with
year-ago blending. Also for the week, blender inputs ran 12%
under the week’s ethanol production rate; a week ago that
difference was 9.1% and back over the first week of October
the numbers were dead even.
Outside the impact of DOE numbers, regional supply
imbalances continue to show up, and market players still
note challenging railroad availability contributing to a pricier
prompt environment, which is not made any easier by winter
storms that made an early appearance in some regions.
EPA’s RFS limbo helps incite RINs rally
A surge in trading activity accompanied sharply higher
prices for EPA’s Renewable Identification Number credits
used to comply with the agency’s federal Renewable Fuel
Standard blending requirements – but part of the problem
is as the year passes the midway point of its penultimate
month, nobody is sure exactly what those requirements are.
Early last week offers on the typical grain-based ethanol
RINs credits, EPA designated “D6,” for current-year vintage
backed quickly backed up, and bids followed as deals popped
more than 6cts higher in the space of just a few hours of
trading time. That had deals done up to 59cts followed by
In Key Markets
Ethanol Buying Prices
City, State
Ethanol Truck & Spot Prices
Ethanol Spot Price -------- Block Term Q2-Q3 Contract Values -------Bulk Truck
Fixed
Formula
(Bulk Barge/Rail)
Formula (calculated) Spot Prices (rack)
Albany, NY
240.00
261.50
Houston, TX
233.00
265.50
NYMEX RBOB
Unl -34.5
168.26
Splash Blend Splash Blend
Rack Price Producer Prices
City, State
Spot Prices
(Rack)
Rack Price
Producer
Prices
N/A
250.00
280.93
N/A
Cleveland, OH
245.00
251.50
245.00
N/A
N/A
Decatur, IL
243.00
240.00
N/A
Des Moines, IA
240.50
257.13
245.73
New Haven, CT
239.50
269.25
NYMEX RBOB
Unl -31.5
171.26
N/A
N/A
N/A
New York, NY
236.00
265.75
NYMEX RBOB
Unl -35
167.76
245.50
N/A
N/A
Chicago, IL
240.00
254.50
NYMEX RBOB
Unl -45
157.76
250.00
245.00
245.00
Louisville, KY
243.00
N/A
N/A
N/A
248.00
N/A
N/A
Minneapolis, MN
235.00
N/A
N/A
N/A
240.00
247.78
245.56
St. Louis, MO
244.00
253.50
NYMEX RBOB
Unl -44
158.76
251.00
292.50
N/A
Los Angeles, CA
(90.1)
262.00
267.50
NYMEX RBOB
Unl -30
172.76
272.00
N/A
N/A
Phoenix, AZ
259.50
265.00
NYMEX RBOB
Unl -32.5
170.26
N/A
260.00
260.00
San Francisco, CA
(90.1)
261.50
267.50
NYMEX RBOB
Unl -30
172.76
270.00
N/A
N/A
Pacific Northwest
259.00
N/A
N/A
N/A
N/A
348.00
N/A
Doniphan, NE
235.00
248.24
239.00
Fargo, ND
237.00
250.85
239.54
Indianapolis, IN
243.00
N/A
N/A
Kansas City, KS
240.00
256.24
246.45
Madison, WI
249.00
259.88
N/A
Omaha, NE
238.50
251.39
247.48
Peoria/Pekin, IL
242.00
N/A
N/A
Sioux City, IA
237.00
241.78
236.75
Sioux Falls, SD
237.50
245.51
235.63
Topeka, KS
242.00
254.27
250.82
Wichita, KS
237.50
248.70
239.33
Denver, CO
249.50
292.67
N/A
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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
confirmed trades at 60cts, up just short a dime from the day
before and adding a dozen cents or so week-to-week.
So, for some, the economic incentive favoring RINs is
clearly apparent this month.
In fact, RINs prices had been simmering up most of
November before reaching a boiling point last week. Prices
did ebb from their highs by midweek, but remained volatile at
presstime, trading at 57cts/RIN and higher. This meant they
had retained most of their recent rise. The less liquid vintages
and varieties of RINs went along for the D6 rollercoaster ride,
and some trading of the D4 biomass-based diesel credits
for 2014 indicated it maintained a 2-4cts premium over D6
ethanol RINs.
However, the recent short-squeeze visiting RINs markets
and the resulting rise in credit prices are unlikely to gin up the
kind of “RINsanity” $1-plus price spike that erupted in 2013,
according to analysts at Citi Research. “Given our forecast
of 17-billion gal of 2014 RIN generation, healthy carryover
stocks and the final rule expectations that should modestly
rollback the 2014 write-downs, we do not expect a bout of
RIN-sanity,” the analysts explained.
Even after the market cooled a bit, D6 RINs values are up
26% since the end of summer.
What awoke RINs from what had until recently been fairly
quiet and stable trading ranges? The first answer on many
lips is a rumor, or belief, that the EPA would imminently
publish its final rule for calendar year 2014 Renewable Fuel
Standard biofuel blending requirements. The ideal was that
some obligated parties stepped in to buy “insurance” with
RINs purchases.
However, as behind as EPA is with the rules – finalizing this
year’s requirements when the year is almost over – some
insiders quashed the idea that it was on the cusp of release.
One market veteran said that the later EPA waits, the more
likely it will stick closer to the proposed rule offered floated
more than a year ago, which would cut total biofuel blending
requirements by 8% compared to the 2013 mandate level.
Certainly, there were a lot more reports of refiners, followed
by traders, stepping into the market to move RINs early
last week. And some of that momentum held up into the
latter part of the week as well. One refiner source upped its
confirmed RINs transactions by 47% over the same period of
the week before, reaching 28 transactions at midweek.
Though the apex of the RINs rally was short-lived, rising
ethanol prices lately, amid logistical issues that have, in
some cases, exacerbated locally short supplies, said market
sources, also helped encourage more interest in RINs credits.
Ethanol exports, especially given a distinct and extended lack
of imports, also got a nod from some in the market.
The rally in ethanol spot prices so far in November – even
after the midweek dump, Chicago prompt ethanol values are
still up 33% this month – means that in many cases ethanol
prices are lately running a premium to gasoline. When the
option presents itself, that might drive some obligated parties
to buy RINs instead of actually blending costly ethanol into
their gasoline.
For example, at the end of October Chicago ethanol spots
traded about 32.3cts/gal cheaper than prompt gasoline in
the city, but by the middle of last week Chicago dead-prompt
deals hit as high as $2.55/gal – putting it at a premium of
more than 62cts over prompt gasoline values.
Still, Citi analysts did note that “recent dislocations in
ethanol blending economics encourages trading of RIN
credits.” Since RINs generation is more costly, it could
encourage some obligated parties to up gasoline exports.
Also, it was not unexpected that ethanol blending might
bow to recent economics, said Citi, noting the ethanol blend
rate into the finished gasoline pool had sagged to the lowest
level since January.
“While we have been bullish ethanol outright and versus
gasoline since September, current pricing dynamics should
not persist in our view,” Citi added, pointing to forward
indications in the market.
One example of a futures snapshot: by the middle of
last week, NYMEX December RBOB settled at $2.0276/
gal, holding a 7.96cts premium to CBOT ethanol futures
at $1.948/gal for the same month. January RBOB settling
$2.0150/gal ran 26.8cts over January ethanol that settled
$1.747/gal on the CBOT.
The RINs balance remains complicated, as well, with
absence of any final word from EPA on 2014 requirements.
One trading source in the market estimates that the current
generation of D6 ethanol RINs and the EPA-allowable carry
from last year suggests the RINs market will end 2014 with
something like a 12% RINs surplus, at mandated blend rates
as currently calculated.
“Fundamentally, we would expect RINs prices to trade
lower based on last year’s carryover RINs bank,” commented
Tim Cheung at ClearView Energy Partners. He estimates the
carry could be about 1.2 billion RINs.
“However, until EPA actually finalizes the rule and indicates
plans for future years, implied uncertainty could actually
ignite a rally,” Cheung wrote.
EPA data signals higher October biodiesel output
While the U.S. Energy Department continues to work on
adjustments that have suspended its monthly biodiesel
report since midsummer, the latest Renewable Identification
Number generation report from EPA suggests output
rebounded last month. The U.S. biofuels industry collectively produced nearly
150.3 million gal of biomass-based diesel over October, up
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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
5.7% from September output, according to RINs generated
and reported for the month in the EPA Moderated Transaction
System. Since the EPA data is for biomass-based diesel,
it includes of both traditional biodiesel output as well as a
smaller portion of renewable diesel.
Meanwhile, the government’s EMTS data for October
also revealed – for the fourth month in a row – reportable
RINs-creating gallons of both cellulosic diesel (D7) and
cellulosic biofuel (D3). In particular, it showcased the recent
expansion of cellulosic biofuel “D3” production generally tied
to renewable clean natural gas or liquid natural gas, which
EPA last summer qualified under cellulosic and advance fuel
National Renewable Fuels Averages
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
235.000
270.581
264.436
212.573
229.093
E-85 Retail (w/ tax)
268.957
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
386.431
382.367
280.583
271.096
--.--
274.057
273.634
Key Renewable Fuels Regional Averages
Northeast
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
236.000
280.930
--.--
217.653
236.954
E-85 Retail (w/ tax)
287.344
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
410.000
394.000
257.395
281.000
--.--
250.760
252.484
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
236.000
279.575
255.000
215.807
259.864
285.672
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
396.000
360.000
245.180
251.040
--.--
246.133
248.746
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
Southeast
Gulf Coast
233.000
257.436
291.010
200.223
225.334
245.484
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
296.310
346.694
241.062
232.665
--.--
255.847
258.125
Midwest
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
235.500
257.819
253.938
209.392
226.573
258.653
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
362.392
347.931
301.940
301.462
--.--
296.355
300.192
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
E-85 Retail (w/ tax)
Rockies
233.000
283.556
271.833
211.219
234.287
266.175
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
389.000
--.--
325.536
--.--
--.--
318.599
300.230
E-85 Retail (w/ tax)
West Coast
Ethanol Spot
Ethanol Rack w/o RIN
Ethanol Rack w/ RIN
Ethanol Blended Rack Gasoline (10%)
E-85 Racks
260.500
339.625
260.000
222.990
255.799
306.452
B100 w/o RIN
B100 w/ RIN
B20 w/ ULSD
B15 w/ ULSD
B10 w/ ULSD
B5 w/ ULSD
B2 w/ ULSD
430.968
442.500
287.322
279.000
--.--
274.900
257.050
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Ethanol & Biodiesel Information Service
pathways under the current Renewable Fuel Standard.
In October, EPA had nearly 7.048 million gal of that
D3 cellulosic biofuel produced, slipping back 6.7% from
September’s level, but still more than double the volume
produced in August. And August had constituted the first
month of more than token output.
“All of the year-to-day [D3] volume is from biogas,” noted
one industry source, but noted that ethanol generation is
coming in right behind it.
Cellulosic diesel, those creating D7 RINs credits, indicated
24,030 gallons during October, up 40.8% from September
output. Previously, production of the small cellulosic diesel
volumes quantified by EPA came from Canada-based Ensyn
Fuels, which operates a 3 million gal/yr biofuel plant in Ontario.
Meantime, advanced biofuels that carry D5 RINs credits
climbed 36% from the month before, topping 4.77 million gal
in October, but that was still well behind generation levels
that started the year at more than 26.5 million gal in January
and well behind July, which had more than 14 million gal
during the month. Conventional corn-based ethanol output, mostly, makes
up the D6 RINs category, and that indicated output of typical
fuel ethanol at nearly 1.157 billion gal during October eased
up 0.89% month-to-month. It also represented the softest
monthly output of conventional ethanol since February.
EPA’s data for October indicated that more than 1.4 billion
RINs were generated during the month.
Richmond may nix KMP rail facility permit
Crude-by-rail deliveries into Kinder Morgan’s Richmond,
Calif., terminal are under fire by the City of Richmond.
The City Council asking the Bay Area Air Quality
Management District (BAAQMD) to revoke Kinder Morgan’s
permit to transport crude oil via rail. The Council is seeking
to halt deliveries into and out of the facility Kinder Morgan
leases at the BNSF rail yard in Richmond, citing concerns
regarding public safety and potential environmental impacts.
November 24, 2014 • Volume 11, Issue 47
to California is around 3.34 million bbl, up roughly 43% from
the same time last year.
Stock Market Movers:
SEC filing: KiOR unable to file quarterly financial
report
Cellulosic biofuels producer KiOR, which recently filed
for Chapter 11 bankruptcy protection, is unable to file its
quarterly financial report with the Securities and Exchange
Commission (SEC) in a timely manner, the company
explained in a Nov. 13 filing with the agency.
KiOR’s stock was delisted from NASDAQ on Nov. 6.
“KiOR, Inc. has determined that it is unable to file its
quarterly report on Form 10-Q for the quarterly period ended
Sept. 30, 2014 in a timely manner and it does not expect to
be able to file the Form 10-Q within the five-day extension
permitted by the rules of the United States SEC,” the
company explained in the Nov. 13 filing.
Previously, KiOR filed for bankruptcy in U.S. Bankruptcy
Court for the District of Delaware. “The bankruptcy case
Weekly Biofuels Stock Performance
Company
Symbol
Abengoa
ABGB
Aemetis
AMTXD
ò
Amyris
AMRS
ñ
Andersons
ANDE
ñ
ò
11/20/14
11/13/14
change
% change
14.29
15.05
-$0.76
-5.32%
6.60
7.01
-$0.41
-6.21%
2.93
2.88
$0.05
1.71%
57.01
54.12
$2.89
5.07%
Archer Daniels Midland
ADM
ñ
52.57
50.81
$1.76
3.35%
Aventine Renewable Energy
AVRW
ò
11.00
11.75
-$0.75
-6.82%
BIOX Corporation
BXIOF
ó
0.540
0.540
$0.00
0.00%
Bluefire Ethanol Fuels
BFRE
ñ
0.060
0.040
$0.02
33.33%
Bunge
BG
ñ
90.66
88.41
$2.25
2.48%
Cosan
CZZ
ò
8.77
9.37
-$0.60
-6.84%
Codexis
CDXS
ñ
2.40
2.30
$0.100
4.17%
GEVO
GEVO
ñ
0.43
0.36
$0.07
16.28%
It was an existing permit for ethanol deliveries into the
terminal that officials amended to allow Kinder Morgan to
expand its slate and accept crude oil deliveries at the site.
Green Earth Technologies
GETG
ñ
0.070
0.050
$0.020
28.57%
Green Plains
GPRE
ñ
35.06
33.01
$2.05
5.85%
GreenHunter Resources
GRH
ñ
1.420
1.250
$0.17
11.97%
The terminal is set up to receive 100-car unit trains, with
a capacity of about 70,000 bbl/train, said Kinder Morgan
spokesman Richard Wheatley.
GreenShift
GERS
ó
0.001
0.001
$0.000
0.00%
Novozymes
NVZMY
ñ
46.42
46.18
$0.24
0.52%
Kinder Morgan’s permit, issued last Feb. 3, allows the
terminal to handle 15,650 b/d of outbound material on an
annual basis. Both inbound and outbound loads vary from
month to month, depending on scheduling for inbound crude
through the BNSF railroad and the truck shipments that
transport product elsewhere for refining.
Pacific Ethanol
PEIX
ñ
14.180
13.510
$0.670
4.72%
Renewable Energy Group
REGI
ò
10.75
9.69
$1.06
9.86%
REX American Resources
REX
ñ
70.330
67.630
$2.70
3.84%
Solazyme
SZYM
ò
2.91
3.44
-$0.530
-18.21%
Texcom Resources
TEXC
ò
0.900
1.050
-$0.15
-16.67%
Valero Energy
VLO
ñ
50.26
49.68
$0.58
1.15%
DJIA
DJI
ñ
17,719.00
17,652.79
$66.21
0.37%
Through September, the 2014 tally for crude-by-rail imports
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Ethanol & Biodiesel Information Service
comes after a severe reduction in the company’s workforce
and the company has devoted substantially all of its
remaining resources to the bankruptcy case, including a
substantial portion of its accounting and financial reporting
personnel and administrative resources. As a result, the
company has determined that it is unable to file its Form
10-Q without unreasonable effort and expense,” KiOR added
in the filing.
Production at KiOR’s 13-million gal/yr renewable crude
plant in Columbus, Miss., has been suspended since January
in order to conserve cash. KiOR owes approximately $14.8
million to creditors, it previously explained. Included in
the voluminous creditor list were trade groups Advanced
Biofuels Association, the American Fuel & Petrochemical
Manufacturers (although listed under its former name of
National Petrochemical & Refiners Association) and the
American Petroleum Institute.
As KiOR explained in one of its Nov. 9 filings, “the debtor
faced challenges in commercializing its technology and
scaling its production to volumes necessary to meet its
targets.”
According to the same filing, as of the petition date, KiOR
had approximately 71 employees, approximately 46 of which
are exempt employees.
A hearing to consider final approval of the post-petition
financing is scheduled for Dec. 8 at 1 p.m. ET.
Inside Washington:
EPA delaying action on 2014 RFS until 2015
EPA will not enforce the final 2014 Renewable Fuel
Standard (RFS2) this year, the agency announced on Nov. 21,
essentially punting on the decision until next year.
EPA’s 2014 RFS proposal, issued in November 2013,
“generated a significant number of comments, particularly on
the proposal’s ability to ensure continued progress toward
achieving the law’s renewable fuel targets,” the agency
explained in a three-paragraph statement.
“Due to the delay in finalizing the standards for 2014, and
given ongoing consideration of the issues presented by
the commenters, the agency intends to take action on the
2014 standards rule in 2015. Looking forward, one of EPA’s
objectives is to get back on the annual statutory timeline
by addressing 2014, 2015, and 2016 standards in the next
calendar year,” it added.
In a proposed Federal Register notice accompanying the
statement, EPA noted it intends “to take action on the 2014
standards rule in 2015 prior to or in conjunction with action
on the 2015 standards rule.”
Additionally, EPA “will be making modifications to the
EPA-Moderated Transaction System (EMTS) to ensure that
Renewable Identification Numbers (RINs) generated in
November 24, 2014 • Volume 11, Issue 47
2012 are valid for demonstrating compliance with the 2013
applicable standards,” it added.
EPA proposed nearly across-the-board cuts in its 2014 RFS
proposal and on Aug. 22, EPA sent the final RFS targets to
the Office of Management and Budget (OMB), setting off a
90-day review period. However, the 90-day deadline ended
on Thursday, Nov. 20, without OMB completing its review.
From the statements received, it doesn’t appear anyone
is happy with the delay, although biofuel groups are pleased
EPA’s proposed cuts to the rule won’t be implemented.
Here is a selection of comments:
Renewable Fuels Association: “Deciding not to decide is not
a decision. Unfortunately, the announcement today perpetuates
the uncertainty that has plagued the continued evolution of
biofuels production and marketing for a year. Nevertheless, the
administration has taken a major step by walking away from a
proposed rule that was wrong on the law, wrong on the market
impacts, wrong for innovation and wrong for consumers.”
American Fuel & Petrochemical Manufacturers: “The
Obama administration’s decision to further delay issuing
the 2014 Renewable Volume Obligations (RVO), as legally
required, is a gross dereliction of responsibility that leaves
fuel refiners and the biofuels industry alike to navigate a
course of ambiguity.
Today’s announcement indicates that the administration
plans to continuously mismanage this program in a manner
that equates to playing Russian roulette with the nation’s
fuel supply at the American consumer’s ultimate expense....
AFPM calls upon Congress to expeditiously resume work on
repealing or significantly reforming the RFS. In the meantime,
AFPM will seek legal intervention.”
National Biodiesel Board: “This administration says over
and over that it supports biodiesel, yet its actions with these
repeated delays are undermining the industry. Biodiesel
producers have laid off workers and idled production.
Some have shut down altogether. We know that fuels
policy is complex, but there is absolutely no reason that the
biodiesel volume hasn’t been announced. We are urging the
administration to finalize a 2014 rule as quickly as possible
that puts this industry back on track for growth and puts our
country back on track for ending our dangerous dependence
on oil.”
Growth Energy: “The EPA made the appropriate decision
today to not finalize the 2014 RVO numbers. We commend
them for listening to all stakeholders. Today’s announcement
is a clear acknowledgement that the EPA’s proposed rule
was flawed from the beginning. There was no way the
methodology in the proposed rule would ever work, as it went
against the very purpose and policy goals of the RFS. The
EPA wisely decided not to finalize the rule so they could fix
the flawed methodology.”
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November 24, 2014 • Volume 11, Issue 47
American Petroleum Institute: “The rule is already a
year overdue and the administration has no intention of
finalizing this year’s requirements before the year ends. It is
unacceptable to expect refiners to provide the fuels Americans
need with so much regulatory uncertainty. This is an example
of government at its worst. The Renewable Fuel Standard
was flawed from the beginning, horribly mismanaged and is
now broken. The only real solution is for Congress to scrap
the program and let consumers, not the federal government,
choose the best fuel to put in their tanks.”
500+ groups urge Congress to pass tax extenders
The National Association of Manufacturers and more than
500 organizations are urging Congress to pass tax extenders
during its lame duck session.
In a letter sent last week to both chambers of Congress,
the organizations noted that “[f]ailure to extend these
provisions is a tax increase. It will inject instability and
uncertainty into the economy and weaken confidence in the
employment marketplace. Acting promptly on this matter in
lame duck will provide important predictability necessary for
economic growth.”
of Automobile Manufacturers, the American Farm Bureau
Federation, the National Corn Growers Association, the
National Council of Chain Restaurants, Natural Resources
Defense Council and the U.S. Chamber of Commerce.
Iowa biofuel producers request quick passage
of tax extenders package
Nine of Iowa’s advanced biofuel producers sent a letter last
week to the state’s Congressional delegation encouraging
the swift passage of a tax extenders package prior to final
adjournment of the 113th Congress.
“It is absolutely critical to our industry that this Congress
pass a tax extenders package, which includes provisions
for biodiesel blending, cellulosic production and accelerated
depreciation, prior to final adjournment,” the letter states.
Denny Mauser, a board member at Western Iowa Energy,
said that the state’s entire congressional delegation “has
shown steadfast support for these important policies, and
today we’re calling on them to take concrete steps to advance
legislation extending these vital provisions that support energy
security, American jobs and a cleaner environment.”
He added: “In the face of more than 100 years of
preferential tax treatment for petroleum – a literal century of
subsidies – these incentives keep advanced biofuel projects
moving forward to the benefit of all Americans.”
Earlier this year, the Senate Finance Committee passed
a retroactive, two-year extension of approximately 40
expired tax incentives, which included the $1/gal biodiesel
tax incentive and the $1.01/gal cellulosic ethanol tax credit.
Some people believe Congress will use the Senate Finance
Committee bill as a guide marker during lame duck.
In Key Commodity Markets:
In finished markets...
Among the organizations that signed the letter were
Growth Energy, the National Biodiesel Board, the Advanced
Ethanol Council, Algae Biomass Organization, the Alliance
Gasoline markets managed to limp along most of the
last week, with some limited upside coming from 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
PADD 1 Inventories
6,092
6,173
6,033
PADD 1 Inventories
49,900
50,300
50,900
PADD 1
750
822
681
PADD 2 Inventories
5,590
5,763
5,822
PADD 2 Inventories
44,500
43,600
46,800
PADD 2
26,253
26,848
24,410
PADD 3 Inventories
3,030
3,010
2,775
PADD 3 Inventories
75,200
75,800
73,333
PADD 3
658
691
685
PADD 4 Inventories
392
382
351
PADD 4 Inventories
6,900
6,900
6,667
PADD 4
428
452
410
PADD 5 Inventories
2,230
2,376
2,133
PADD 5 Inventories
28,200
26,800
28,533
PADD 5
576
600
435
Total Inventories
17,334
17,704
17,114
206,233
Total Production
28,665
29,413
26,622
Total Inventories
204,700
203,400
Current
Prev Mo
3-Yr Avg
Gasoline Production
Gasoline
Current
Last Week
3-Yr Avg
PADD 1
2,952
2,962
2,881
PADD 2
2,512
2,421
2,353
PADD 3
2,246
2,056
2,166
PADD 4
295
335
297
PADD 5
1,550
1,655
1,574
Total Production
9,555
9,429
9,270
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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
that benefited from a little short-covering ahead of the
Thanksgiving holiday coming the following week.
Still, the Harbor is the only east-of-the-Rockies market with
cash gasoline prices holding above the $2/gal threshold,
supported as it is by two-year low inventory levels and light
imports. Despite being one of the strongest U.S. gasoline
markets, prices are still at more than four-year lows and offer
somewhat of a roadblock for imports.
There was also some support for petroleum markets
coming from a looming OPEC meeting at which prospects
of a crude production cut increased as the world oil market
continued to languish in apparent oversupply.
Gasoline futures in the form of NYMEX RBOB for frontmonth December dropped 1.62cts on Thursday, but at
$2.0276/gal it was still up 2.6cts from its week-ago price, a
price that came with a dime-plus drop on the session. Since
then, the contract stabilized and mostly settled a few cents
over the $2.00 mark all week amid limited volumes.
Crude prices did gain some ground Thursday, in part on
the OPEC chatter, but the Merc’s December WTI contract
that settled up a dollar at $75.58/bbl is only $1.37 higher than
a week ago and it still represents a price that slid $4.94 since
becoming the front-month contract.
So currently, domestic, as well as international, crude
benchmarks remain around multi-year lows, with abundant
global supplies and sagging demand still seen exerting
pressure on markets.
Also currently, most expectations are for an overall OPEC
output cut of 500,000-700,000 b/d, but few anticipate a
decrease with any real bite to it. Goldman Sachs analysts
said last week that the persistent slide in oil prices increased
the likelihood that OPEC adjusts its output target lower.
Domestically, the latest DOE petroleum data for the week
ending Nov. 14 revealed a 2.6-million-bbl crude oil stock
build, taking total supply to 381.1 million bbl nationally – the
fattest U.S. crude inventory since early July.
The weekly supply report from DOE did have East Coast
gasoline stocks declining again over the week, slipping
443,000 bbl and dropping 4.8% behind year-ago stocks, but
that masked RBOB supply that built 1.1 million bbl for the
week. At 14.3 million bbl, however, East Coast RBOB remains
a concern and one of the lowest levels reported for the region
in the last couple years.
Chicago CBOB numbers, meantime, are in the low-$1.90s,
while Group 3 sub-octane and Gulf Coast CBOB are in the
mid-to-low-$1.80s. Trading $1.9176/gal Thursday, CBOB in
Chicago eased up 1.12cts on the day and fell 7.4cts behind its
week-ago price.
Gulf Coast CBOB traded down to $1.8101/gal, easing just
37 points on the day and 90 points week-to-week, however
spot differentials tightened from a 23cts discount to the Merc
at midweek, to a 21.75ct discount Thursday. A week ago,
CBOB traded 18.25cts cheaper than the Merc benchmark.
Languishing spot market prices, including out West where,
notably, the Northwest cash values are down some 17cts
over the course of the last week, left marketers with some
solid margins heading into the weekend. Nationally, the
average gross margin in the US is around 27cts/gal according
to OPIS data, with several states seeing average margins in
the 30s and 40cts/gal area.
In addition, gasoline demand implied by DOE appeared
firm. The 9.194 million b/d in offtake for the week climbed
2.1%, or 189,000 b/d, from the week before and moved 3%
ahead of the 2013 week. Some analysts now see gasoline
demand ringing up a strong autumn by DOE standards,
though the offtake may now reflect storage that is getting
Meantime, bulk gasoline markets are led by the New York
Harbor, which continues to hold strong compared to other
major U.S. spot gasoline locations. But outright prices for
prompt RBOB in the region retreated 1.97cts Thursday, and
at $2.0566/gal, ran 2.75cts lower week-to-week.
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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filled ahead of the drive-heavy Thanksgiving holiday.
While solid rack-to-retail margins continue to dot the
landscape, average retail prices remain biased to the
downside. At presstime, the national average pump price ran
between $2.84-2.85/gal, according to the AAA Fuel Gauge
Report and GasBuddy.com.
In natural gas...
Unseasonably cold weather over most of the country
helped keep gas prices strong and though some warmer
prospects started to weigh on some prices, the first supply
draw of the year helped re-energize futures Thursday.
The Henry Hub cash market for gas managed to nose up a
couple cents Thursday and at $4.41/mmbtu traded up 23cts
week-to-week. Chicago Citygate gas, however, lost a nickel
on the day but retained a 57cts week-to-week price gain,
at $5/mmbtu Thursday. The expected end to colder-thannormal temperatures heading into Thanksgiving week started
to pull on markets, though many still focused on the cold
weather at hand, even though most spot trading reportedly
preceded a larger DOE-reported stock draw.
“With nearly half of the U.S. blanketed in snow, and
temperatures 15 to 30 degrees F below normal in many
states, the recent weather pattern appeared reminiscent of
the 2013-2014 winter, one of the coldest in years,” explained
DOE in a midweek report. Though forecasters generally do
not expect a repeat of 2013-14, the talk did bend the ears of
traders.
“The weather is always unexpected,” said one trading
source in the Midwest. And driven by cold, natural gas
consumption outran supply for the week.
November 24, 2014 • Volume 11, Issue 47
“Dry production fell during the week, down 1.5% from
the previous week, though still 4.7% greater than the same
period last year,” reported DOE. Week-to-week gas demand
also moved up 35%, according to DOE, with big gains in
consumption for residential and commercial uses.
There was also talk of how much gas production might be
trimmed in recent weeks in reaction to the extreme cold that
can limit work and cause shutdowns at some sites.
The draw reported for the week before from DOE quickly
reversed what had been a sagging paper market Thursday
morning. It was not unexpected that the first natural gas
draw of the season would show up, but a 17 bcf net draw on
stocks for the week was more than expected, and it helped
front-month December natural gas settle up 11.8cts on the
day, at $4.489/mmbtu. The Merc contract settled Thursday 51.2cts higher than
it did a week ago and reached a new four-month high. The
draw on supply left gas stocks 5.3% behind the same time in
2013 and 6.4% under the 5-year average.
Meantime, the 6-month NYMEX futures strip average
also surged higher over the last week, running up by nearly
40.2cts from a week ago and averaging nearly $4.3067/
mmbtu. The Merc gains, however, were not enough to
overtake Henry Hub cash prices and the strip continued to
put paper under physical values, with a gap of more than
10.33cts Thursday. That spot premium still represented a
62.4% tighter differential than a week ago.
In corn...
Corn markets that started to reveal some harvest pressure
sagged to two-week lows but did recover some of those
Plant Profitability
Biodiesel Gross Margins for Midwestern Plants ($/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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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
losses with some solid late gains. Front-month December
CBOT futures traded up a dime Thursday, to $3.7325/
bu, but that still had prices off 13cts in the week-to-week
comparison. Nevertheless, it was a nifty recovery off the day
before when the contract traded below $3.63, to the lowest
level since Nov. 5.
prices through most of the week came from surprising robust
export indications from USDA, as well as a nudge, too, from
the big rebound in corn-based ethanol production that DOE
reported for the previous week. The DOE figure indicated
corn-to-ethanol operations up 2.5% on the week and more
than 9.6% since early last month.
March corn settling at $3.8625/bu added 10.25cts on the
day, still leaving the contract running 12.5cts cheaper from a
week ago. The 13cts premium for March corn over December
on Thursday ran 11.8% tighter week-to-week.
Corn net export sales for the latest week ran 28% higher
than even some of the highest forecasts, according to
USDA figures. The 908,700 metric tons of export sales is not
considered a particularly strong number from the agency, but
it well outpaced expectations. Export commitments stand at
46% of USDA’s total for the year, and that is a bit behind the
The Thursday turnaround for what had been lagging corn
National Renewable Fuel Feedstock/Co-Product Price Index
Feedstock/Co-product
Location/Source
Spot Price
Previous
4-Wk. Avg.
Palm Olein
US/Gulf Coast
$0.3592/lb
$0.3616
$0.3604
Soybean Oil - Crude De-gummed
Central Illinois
$0.3426/lb
$0.3397
$0.3503
Soybean Oil - Crude Degummed
Central Illinois - USDA
$0.3342/lb
$0.3269
$0.3364
Soybean Oil - RBD*
Central Illinois - USDA
$0.3701/lb
$0.3672
$0.3778
Canola Oil
West Coast
$0.4251/lb
$0.4222
$0.4291
Canola Oil
Midwest
$0.4226/lb
$0.4197
$0.4266
Corn Oil - Crude
Midwest
$0.3650/lb
$0.3650
$0.3650
Corn Oil - Refined
Midwest
$0.4354/lb
$0.4350
$0.4351
Beef tallow
Chicago
$0.3350/lb
$0.3200
$0.3075
Choice White Grease
Chicago
$0.3100/lb
$0.2850
$0.2888
Poultry Fat (Low FFA)**
Southeastern US
$0.2825/lb
$0.2800
$0.2794
Yellow Grease
Illinois
$0.2575/lb
$0.2575
$0.2525
Methanol
US Gulf Coast
$1.1950/gal
$1.1850
$1.4163
Soy Meal (Hi-Pro)***
Illinois Truck
$440.00/ton
$460.00
$449.25
Corn
Central Illinois
$3.6500/bu
$3.7800
$3.6550
Soybeans
Central Illinois
$10.1500/bu
$10.6300
$10.3375
Crude Glycerin (80%)
FOB Midwest
$0.0650/lb
$0.0650
$0.0650
DDG-S (Distillers Dried Grains w/ Solubles)
Eastern Cornbelt - USDA
$118.7500/ton
$105.0000
$105.7500
Corn
Kansas City - USDA
$3.4325/bu
$3.4375
$3.3494
ULSD
OPIS National Average
$2.4060/gal
$2.4070
$2.4875
RBOB
OPIS National Average
$1.9980/gal
$2.0140
$2.0865
Ethanol
OPIS National Average
$2.3500/gal
$2.3490
$2.1825
Unleaded RFG
OPIS National Average
$1.9860/gal
$2.0020
$2.0705
Natural Gasoline
Mt. Belvieu Non-TET
$1.5225/gal
$1.4863
$1.5779
Natural Gasoline
Conway In-well
$1.5331/gal
$1.4413
$1.5367
Ethanol RINs (Current Year)
OPIS National Average
$0.5750/RIN
$0.4780
$0.4930
$0.4903
Ethanol RINs (Previous Year)
OPIS National Average
$0.5700/RIN
$0.4760
Cellulosic RINs (Current Year)
OPIS National Average
N/A
N/A
N/A
Cellulosic RINs (Previous Year)
OPIS National Average
$0.4200/RIN
$0.4200
$0.4200
Biodiesel RINs (Current Year)
OPIS National Average
$0.6050/RIN
$0.5150
$0.5290
Biodiesel RINs (Previous Year)
OPIS National Average
$0.5700/RIN
$0.4800
$0.4938
Advanced Biofuel RINs (Current Year)
OPIS National Average
$0.5950/RIN
$0.5050
$0.5188
Advanced Biofuel RINs (Previous Year)
OPIS National Average
$0.5675/RIN
$0.4675
$0.4844
CA LCFS Carbon Credit
California
$26.00/mt
$26.50
$26.0000
CA LCFS Carbon Intensity
California
$0.0022/CI
$0.0022
$0.0022
*refined, bleached, deodorized **free fatty acids ***high protein
Data provided, in part, by World Energy, www.worldenergy.net
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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
49% average for this time of year.
In distillers dried grains...
Despite the cold and the snow in some areas, U.S. farmers
continued to make good headway on the harvest, indicating
that in most cases the foul weather might be too late to do
much damage to the crop or harvest. At the start of the week,
USDA reported the harvest 89% complete, just ahead of the
5-year average 88% for the week and a touch behind the
2013 pace that reached 90%.
The market for distillers dried grains often showed very
little or no change week-to-week, both in FOB pricing and for
material going to delivered markets.
Some of the price pressure earlier in the week came from
increased producer selling amid reports of tighter spot
differentials showing up in key cash locations, all linked to the
end-game of a record harvest. Kansas City No. 2 truck yellow
corn ran mixed week-to-week, priced 3cts lower to 2cts
higher, at $3.4325/bu. Chicago No. 2 yellow corn dropped
3-13cts, at $3.4525-$3.7325/bu.
In biodiesel...
Stronger petroleum diesel prices at the rack over the latter
half of the week helped ease biodiesel blending economics
ahead of the weekend, but a run-up in EPA’s blending credit
values could also help blenders.
Biodiesel rack prices remained sluggish, and traded
down 3cts against a week ago on average, at $3.824/gal
nationally. At the same time, on-road petroleum diesel at the
rack slumped at midweek, then rebounded back to show
almost no change week-to-week, off 15 points nationally and
averaging $2.765/gal.
While that would still leave B100 priced $1.059 over diesel
racks, on average, there was also a rally in D4 Renewable
Identification Number credits for biomass-based diesel. D4
RIN credits for 2014 that could be had at 50cts/RIN a week
ago jumped as much as 22% at last word, with trading
around 61cts. That would indicate that a gallon of biodiesel
could also deliver up to 91.5cts in RIN credit value.
At the rack, RIN credits could cut the B100 price premium
over diesel back to 14.4cts/gal, less than half of what it
averaged a week ago.
Iowa FOB pricing on DDGs ran $100-$125/ton, which
had the cheaper values nosing up $3, but the pricier DDGs
quoted falling back $6 for the week. Minnesota DDGs quotes
gained $10 on the low end, with most other prices holding
steady with a range of $100-$115.
Eastern Corn Belt DDGs prices did not budge during the week,
showing the same $95-$140 that the market exhibited a week ago.
In Kansas, DDGs called $120-$145 over the last week also
showed little else than some movement on the lower end, up
$5, with the top prices holding steady. At $110-$130, Nebraska
DDGs held at the same range the region reported a week ago.
Meantime, delivered DDGs markets often showed better
footing, though the gains remained small. Chicago delivered
DDGs at $126-$142 gained $4-$6 over the last week. While
Pacific Northwest DDGs slumped $5-$10, at $190-$199,
those going to California stepped $2-$4 higher on the week,
at $193-$202.
In natural gasoline...
Spot natural gasoline prices at a key hub advanced some
2.4% in the last week, goaded by RBOB that found some
legs during the week and expectations that prices may get
some support early next year.
Trading $1.5225/gal in Mt. Belvieu on Nov. 20, natural
gasoline moved up from $1.48625/gal that it traded on Nov.
13 – but the depths the market sagged into is evident that
prices still ran down by 4.7% since Nov. 6 ($1.59875/gal0,
and a 10.6% down from Oct. 30 ($1.70375/gal). The market rebounded along with RBOB gasoline futures.
December RBOB futures edged up 3% on the week, but at
$2.0276/gal it remained well behind the $2.1301 from Nov. 6
and the $2.1610 on the Oct. 30 settle.
The natural gasoline market is forecasting strength early next
year before a dip. The price for natural gasoline in January
European Biodiesel Spot Markets
Rotterdam FAME ($/gal)
Rotterdam RME/Gasoil ($/gal)
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is seen at $1.545625, before dipping in April to a projected
$1.534375. The forward curve for the market does not rise
above the January price until September. This indicates
that the seasonal pickup in prices when the driving season
normally increases demand may not be evident in 2015.
The bulls had a slight gain this past week and may be able
to ride higher prices into the early part of the year, but if the
forward curve is a reliable indicator, the bears will emerge
from hibernation and take back control of the market.
In ultra-low-sulfur diesel...
U.S. distillate inventories held higher than the same time
last year, despite dropping some 2.1 million bbl for the week,
according to DOE. Some regions appeared to remain illsupplied amid very volatile bulk markets.
Of that distillate disappearance during the week, almost
1.8 million bbl of it came out of the nation’s ultra-low-sulfur
diesel storage. At 91.245 million ULSD bbl on hand, stocks
are still about 1% ahead of the same week last year, but like
the overall number there are regional spots where supply is
running behind.
Midwest diesel stocks need to be watched, after total
distillate inventory for the week fell back to 22.9 million bbl
– another all-time low in nearly 25 years of weekly data from
DOE. At the same time, ULSD stockpiles in the region ran 5%
lower year-on-year and at 22.15 million bbl gave up 181,000
bbl in the last week. In the Gulf Coast, however, ULSD
stockpiles are 4.5% ahead of last year and there supply build
228,000 bbl on the week, at 30.262 million bbl.
The harvest demand for diesel is winding down and total
diesel demand by DOE’s latest count backed off a bit to
3.794 million b/d. The metric hasn’t surpassed the more
normal looking 4-million-b/d mark since late September.
Midwest diesel markets erupted in some wild swings and
huge price ranges during the week.
At midweek, the Group 3 diesel market had prices
skyrocket and then drop sharply over the course of just 48
November 24, 2014 • Volume 11, Issue 47
hours. After climbing toward a 50ct premium versus the
futures market for prompt ULSD in the Group, that premium
“collapsed” to just 22cts by Thursday. The $2.60/gal outright
price for Group ULSD plunged back 24.5cts from the day
before but held 17.79cts higher week-to-week in that highly
volatile market.
Before the Thursday selling, there was even steeper
backwardation for Group diesel as December ratable barrels
were secured at a discount of 6cts/gal to the futures market.
December ratable barrels neared $2.365/gal at the time, a
little more than 39cts cheaper than prompt, but that shifted
quickly in a diesel market that proved it can turn on a dime.
European, Brazilian and CBI Markets:
Rotterdam
RME
FAME
Ethanol T2
$3.21
$2.83
$2.16/€1.72
Prices in U.S. $/gal., 11/20/14 Data provided, in part, by Starsupply Renewables,
www.starsupply.ch and SCB & Associates, www.starcb.com
European Markets
“Sweden is the frontrunner among Member States
regarding the growth of renewables in transport,” declared a
draft report by the United Nations Conference on Trade and
Development (UNCTAD) that was released earlier this month.
“The share of biofuels in the Swedish domestic transport
sector has more than doubled in the last years, from 2.9% in
2006 to approximately 7.5% in 2012. In a business-as-usual
scenario, Sweden may exceed its mandate of 10% renewable
fuels in transport by 2020 with a surplus of 2%.”
Through 2011, ethanol had the largest market share in the
country, but in 2012, biodiesel matched it at approximately
400 million liters per year for each fuel.
“This was a result of many policy instruments based
on low-carbon emissions, which have been affecting the
development of the transport sector in Sweden during
the last years,” found UNCTAD. “As a result, the Swedish
dependency on diesel is increasing. In fact, heavy-duty
vehicles already are highly dependent on it.”
Brazil and CBI Ethanol Spot
CBI Hydrous Ethanol Implied Value vs. NYH Spot ($/gal)
Anhydrous vs. Hydrous ($/gal)
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While use of diesel engines and biodiesel improves the
fuel economy of the transport fleet, it leaves the country
vulnerable to a shortage of diesel and biodiesel, UNCTAD
said. “Several components of the bioenergy system are
highly dependent on road transport and heavy-duty vehicles,
such as machinery operation in the forestry sector and
transport of raw materials from forests to fuel factories and of
biofuels to heating plants,” it stated.
The other big challenge in Sweden is its low production
of biofuels. In 2011, 55% of the ethanol and 60% of the
biodiesel used in Sweden was imported, mostly from
France and Lithuania, respectively, according to the
Swedish Energy Agency.
“Unfortunately, the country’s current policy framework is
not strong enough to trigger changes within the Swedish
biofuel system in order to change this pattern. The reason
behind this is not only a lack of infrastructure and management
capability related to local production, especially regarding
2nd-generation biofuels, but also a need for stronger policy
instruments to trigger changes,” UNCTAD stated.
“Furthermore, biofuel production plants are still generally
seen as risky investment by traditional and well-established
investors in Sweden,” the report continued. “One of the
current causes for uncertainty is related to the fact that
biofuel production systems in place have not yet been able to
establish robust and clear sustainability criteria.”
On the other hand, the positive trends are clear.
Regulations have increased the allowable blending levels
of biofuels – with the support of vehicle manufacturers – as
Sweden pursues the 10% total pool biofuels goal. The most
common biodiesel blend is 5% (B5), though carmakers allow
blends of up to 20% (or higher if engines are modified). Since
May 2011, 7% FAME-based biodiesel and 15% HVO-based
biodiesel have been allowed.
Clean-fuel vehicles that can handle up to 85% ethanol
blends have become widely available, which has spurred the
installation of E85 pumps.
Market update
Biofuels prices had a second consecutive quiet week. As
of Nov. 20, RME fob ARA finished up $4/ metric ton (MT) in a
bid/ask range of $949-$969/mt. SME fob ARA was up $1 to
$856-$876/mt. PME was down by $14/mt to $766-$796/mt.
FAME 0 was up $1/mt to $846-$866/mt. Prices are provided
by SCB Renewables.
Brazil and CBI Markets
Anhydrous Ethanol 2.06305-2.10090 Hydrous Ethanol 1.89271-1.96841
(FOB Santos, 11/20/14, prices in U.S. $/gal.)
As was the case at the end of September, Brazil’s ethanol
inventories at the end of October stood at historically high
levels, figures from Brazil’s Ministry of Agriculture show.
November 24, 2014 • Volume 11, Issue 47
The higher inventories could translate to less price volatility
as Brazil’s principal South Central sugarcane-growing region
enters the inter-harvest period (roughly December 2014
through March 2015). The higher inventories also could
translate to less reliance on ethanol imports from the United
States during the inter-harvest period.
The figures show South Central anhydrous ethanol
inventories totaling 4.412 billion liters at the end of October,
representing a 35.6% increase over the inventories on hand a
year earlier (3.253 billion liters).
South Central anhydrous inventories saw an increase of
623.7 million liters last month, outpacing an inventory build of
566.4 million liters during October 2013.
In Brazil, anhydrous ethanol is blended into gasoline
(currently at a blend rate of 25%), and hydrous ethanol
competes with gasoline at the pump.
The figures show South Central hydrous inventories totaling
5.986 billion liters at the end of October, putting them 45.9%
higher than the 4.103 billion liters recorded at the end of October
2013. The last time regional hydrous inventories topped 5 billion
liters at end-October was in 2010 (5.252 billion liters).
The October build in South Central hydrous inventories
handily outpaced the October 2013 build, with a build of
910.1 million liters last month compared to a build of 182.8
million liters in October 2013.
Earlier this month, several Brazilian ethanol producers
reported year-on-year builds in their ethanol inventories
for Sept. 30, or the end of the calendar third quarter. The
strategy of those companies is to have more ethanol on hand
to sell during the South Central inter-harvest period, when
ethanol prices are relatively strong.
Biosev reported ethanol inventories at the end of the
quarter of 497,000 cubic meters (cbm), nearly double the
250,000 cbm recorded at the end of the prior-year period.
Guarani reported its ethanol inventories as being up by
34% year on year to 71,000 cbm.
São Martinho recorded anhydrous ethanol inventories of
155,107 cbm (up 118.3% year on year) and hydrous ethanol
inventories of 165,397 cbm (up 140.5%).
Raízen Energia, the joint venture between Shell and Brazil’s
Cosan, reported 1.082 million cbm of ethanol inventories at
the end of September, representing a 65.7% increase from
653,000 cbm on hand at the same time last year.
As for ethanol trade between Brazil and the United States:
Market sources at mid-month said that 20,000 cbm of
Brazilian ethanol had been arranged for shipment to Port
Canaveral in Florida for delivery in first-half December.
Sources also noted 10,000 cbm of ethanol slated for delivery
from the Brazilian port of Santos to Port Everglades, Fla., with
delivery of the volume expected in early December.
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On Nov. 6, the price of anhydrous ethanol fob Santos dipped
to below the Tampa spot price for the first time this autumn, with
skyrocketing U.S. spot prices behind the changed relationship.
By Nov. 14, Tampa spot ethanol was being assessed
53.1cts/gal stronger than anhydrous ethanol fob Santos
($2.5750/gal versus $2.0440/gal), with sliding Brazilian values
contributing to the widening gap.
Market sources have been pegging the freight cost to move
ethanol from Brazil to the U.S. East Coast at about $45/cbm
(17cts/gal) for shipments of 20,000 cbm.
There were reports on Nov. 14 of anhydrous ethanol fob Santos
having traded at around $535-$540/cbm ($2.0250-$2.0440/gal).
At presstime, there were reports of anhydrous ethanol for
late-December delivery to the U.S. being offered at $570/
cbm fob Santos, with no bids reported.
News of the Week:
Y-O-Y deficit in Brazil’s ethanol exports
widened in October
Brazil’s ethanol exports to the United States during the
first 10 months of 2014 were down by 59.5% versus the
same period last year, and Brazil’s ethanol exports to all
destinations were down by 55.5%, figures from Brazil’s
Secretary of Foreign Commerce show.
In comparison, the year-on-year export deficit over the first
nine months of 2014 had been 56.1% as far as exports to the
U.S. and 53.4% as far as exports to all destinations.
Joule names former Total CEO to lead company
Massachusetts-based alternative fuel startup Joule
Unlimited has tapped the former chairman and CEO of Total
SA as its new president and CEO, the company announced
recently.
Serge Tchuruk has succeeded Paul Snaith, who resigned
as president and CEO, a position he held since February.
CARB responds to concerns regarding Neste Oil’s
renewable diesel pathway
The California Air Resources Board received several
comments regarding the recently announced Low Carbon
Fuel Standard pathway application for renewable diesel from
Neste Oil’s facility in Singapore.
Several of the commenters expressed concern about Neste
Oil’s use of fish oil as renewable diesel feedstock.
More comments arrive about Washington state
clean fuels plan
Oil industry representatives have expressed opposition to
a proposed Low Carbon Fuel Standard (LCFS) in Washington
November 24, 2014 • Volume 11, Issue 47
state, while environmental groups and biofuels industry
groups have suggested adjustments to a program that they
generally favor, according to comments received by the
Office of Financial Management.
“WSPA [Western States Petroleum Association] does
not believe a Low Carbon Fuels Standard is a feasible or
appropriate policy for Washington State,” said WSPA in its
comments submitted last week.
CARB accepting comments on pathways for
biodiesel and biodiesel feedstock
The staff of the California Air Resources Board recently
posted two Low Carbon Fuel Standard fuel pathway
applications for comment.
One application is from FutureFuel Chemical Co., which
is seeking approval of two pathways: used cooking oil to
biodiesel, and corn oil to biodiesel.
Proposal for Canadian biodiesel plant
not dead yet: Official
A proposal to build a Canadian biodiesel plant that was
turned down by a local government body is not necessarily
dead, according to an official involved in the plan.
Norfolk Disposal Services’ pitch for the plant, to be located
in Waterford, Ontario, was turned down by the Norfolk
County Council, but General Manager Bernie Debono
indicated that the plan could still go forward.
Maple Energy ends negotiations for investor offer
of ethanol business
Maple Energy, a Peruvian energy company with ethanol
interests, announced that it has terminated negotiations on
a proposed transaction for a substantial part of its equity
interest.
Last month, the company received an offer from Grana y
Montero S.A.A. and Alcogroup SA. According to the terms
of the proposed offer, the investors would pay an initial
$4 million to acquire a 40% equity interest in The Maple
Companies Limited, the subsidiary dedicated to ethanol
production and hydrocarbon operations, in which Maple has
a 95.4% interest.
CARB: LCFS credit volume drops
but prices hold steady
The latest monthly report from the California Air Resources
Board (CARB) shows steady pricing for Low Carbon Fuel
Standard credit trading in the state, but volume tailing off
significantly from month to month.
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The average trading price for LCFS credits over October
settled at $26 per credit, the same price that such trading
averaged in September, according to CARB figures released
recently.
November 24, 2014 • Volume 11, Issue 47
California Energy Commission providing
$3 million grant to Pacific Ethanol
Amyris says can hit the billion-dollar mark by 2020
The California Energy Commission (CEC) is providing a $3
million grant to a Pacific Ethanol subsidiary to develop and
use sorghum feedstock, the agency announced on Nov. 17.
During the recent third-quarter earnings call for biofuels
and biochemical company Amyris, CEO John Melo made the
statement that the company can see its way to reaching sales
of $1 billion by 2020.
Specifically, the grant to Pacific Ethanol Development
LLC to use the sorghum feedstock will lead to the
production of low-carbon transportation fuel in Madera
and Stockton.
“Over half of our expected growth over the next few years
is based on renewable products we are commercializing with
our partner. We believe that our current product portfolio,
partnerships and strong manufacturing performance
underpins around $1 billion of revenue at a 50% to 60%
gross margin by the end of this decade,” Melo said near the
end of his prepared remarks during the Nov. 4 earnings call.
Cardinal Ethanol pays nearly $10K fine
for alleged permit violations
UN report sees potential for biofuel sector
increase in South Africa
As Cardinal Ethanol CEO Jeff Painter explained to OPIS,
“This was a result of questions by IDEM that fermentation
tanks might emit compounds into the air after the CO2
scrubber is shut down for regular, routine maintenance.”
Among African countries, South Africa seems to have aboveaverage potential for biofuels growth in the next few years, the
United Nations Conference on Trade and development found
in a draft report released earlier this month.
The report, “The State of the Biofuels Market: Regulatory,
Trade and Development Perspectives,” looks at production,
demand, regulation and trade in biofuels across the world,
analyzing the period from 2006 through 2012.
BlueFire Renewables unable to file
quarterly results on time
California-based cellulosic ethanol developer BlueFire
Renewables is unable to file its quarterly financial results in a
timely manner, the company explained in a Nov. 14 filing with
the Securities and Exchange Commission (SEC).
“Registrant was not able to obtain all information prior to
filing date and management could not complete the required
financial statements and management’s discussion and
analysis of such financial statements by Nov. 14, 2014,”
Bluefire Renewables explained in the SEC filing.
Analysis questions data on
indirect and-use changes
An analysis by Iowa State University raises concerns
about the accuracy of economic models used by regulatory
agencies to penalize ethanol for indirect land use changes.
The study, released Nov. 14, was partly funded by the
Renewable Fuels Foundation, the education and research
arm of the Renewable Fuels Association.
Cardinal Ethanol, which operates a 100-million gal/yr
ethanol plant in Union City, Ind., has paid a $9,600 fine
imposed by the Indiana Department of Environmental
Management (IDEM), alleging operating permit violations.
Kan. ethanol plant to regain full capacity
of dry distiller’s product in ‘14
Conestoga Energy Partners expects to have its full capacity of
dry distiller’s product to sell from its Liberal, Kan., ethanol plant by
the end of next month, according to a company representative.
“We were able to get part of the capacity back by the end
of July and will have our full capacity back by the end of the
year,” the representative told OPIS.
Lufthansa inks first term biojet deal
Lufthansa has become the first international airline to ink a
term supply deal to use biojet fuel at the Oslo Airport in Norway.
The agreement, inked at the IATA International Conference
in Dubai, is with fuel supplier SkyNRG Nordic, the consortium
partnership between SkyNRG and Statoil Fuel & Retail Aviation.
Feed Food Fairness campaign
launches RFS repeal ad
A campaign aimed at repealing the Renewable Fuel
Standard (RFS2) was sponsoring an ad in Politico, warning
that the biofuels provision “will cause corn and other food
commodities to soar.”
The Feed Food Fairness campaign was previously formed
by the National Council of Chain Restaurants, the American
Beverage Association, the American Meat Institute, the
International Foodservice Distributors Association and the
National Chicken Council.
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Ethanol & Biodiesel Information Service
November 24, 2014 • Volume 11, Issue 47
Missouri biodiesel plant restructures deadlines
for anticipated sale
Online traceability added to sustainable
feedstock certification
Producers’ Choice Soy Energy LLC has restructured the
deadlines for the anticipated sale of its 10-million gal/yr
biodiesel plant in Missouri.
The Roundtable on Sustainable Biomaterials (RSB)
announced Nov. 19 that Elements Software Ltd. has
developed new online tools to enable RSB members to
track their biofuel feedstocks more effectively than current
spreadsheet-based tracking systems.
The new schedule includes a Nov. 21 deadline for
communicating interest to agent Solutions 4 Manufacturing
(S4M), a Dec. 19 deadline for completing plant visits
and conducting due diligence and a Dec. 31 deadline for
submitting a letter of intent to purchase.
RSB is one of the leading firms that provides a global
sustainability certification for biofuels feedstocks.
Rep. Pallone to be ranking Democrat
on House Energy Committee
Gasoline marketer groups urge Congress
to extend biodiesel tax credit
The Petroleum Marketers Association of America (PMAA)
and three other gasoline marketer-related groups are
urging Congressional leadership “to move quickly on a tax
extenders package, with particular support for the biodiesel
blender’s tax credit.”
In a letter to Congressional leadership dated Nov. 13,
PMAA, NATSO, the Society of Independent Gasoline
Marketers of American and the National Association of
Convenience Stores wrote that they “represent the majority
of biodiesel blenders and marketers in this country. We urge
Congress to enact a multi-year, retroactive extension of the
$1-per-gallon biodiesel tax credit.”
Africa trails other areas in advancement
of biofuels: Report
Africa remains far behind other areas when it comes to
the advancement of biofuels, the United Nations Conference
on Trade and development found in a draft report released
earlier this month.
U.S. Rep. Frank Pallone (D-N.J.) beat fellow Rep. Anna
Eshoo (D-Calif.) to be the next Ranking Democrat on
the House Energy and Commerce Committee next year,
according to numerous reports.
In a Democratic Caucus vote Nov. 19, Pallone won in a
100-90 vote, according to reports.
Consultant: Grants, land make Canada attractive
for advanced biofuel plants
San Francisco – U.S. advanced biofuel and chemical
producers should think of co-locating their plants in Canada
to take advantage of the ample land, lower corporate tax
rates and grants available, a Canadian energy consultant
told the audience here at the Advanced Bioeconomy
Leadership Conference.
As Jeff Passmore, CEO of Passmore Group Inc., explained,
assuming project sponsors have both demonstrated
technology and equity, Canada can offer feedstock,
locations, partners, grants and attractive markets.
“The African continent is far from solving its challenges to
become major actors within global biofuel markets,” it said.
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