TOP STORY

This week, the Iowa Utilities Board (IUB) announced that it would allow Summit Carbon Solutions' carbon capture pipeline project to move forward.  

Given the size and scope of Summit's project, and its potential to make carbon capture available to more bioethanol producers, this decision is a key victory not just for Summit, but for the entire biofuels industry. Growth Energy applauds this decision, and we look forward to building on this momentum with Summit and other industry stakeholders. We will continue our work to increase the value of American bioethanol by lowering its carbon intensity (CI) score through carbon capture.  

For more information, please contact Senior Vice President of Development Kelly Manning.

LATEST EIA DATA

Last week, domestic ethanol demand was 14.1 BGY, down 4.4% compared to a week ago. The EIA-reported gas demand was down 4.4% from last week, at 137.5 BGY. The 4-week average ethanol and gas demand are 14.3 and 139.3 BGY (-2.0% YoY).

Ethanol production was 16.0 BGY last week, down 1.3% versus the week before, and 3.3% less than the 4-week average in 2019. Midwest production was down 1.1% (-3.2 MG) versus a week ago, and average production in the other regions was down 5.1% (-0.9 MG), mainly in the USGC and West Coast regions. Capacity utilization of plants online was 90.4% overall, 91.6% in the Midwest, and 72.8% on average, elsewhere, excluding 1,247 MGY of capacity shutdown at 25 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 84.4% overall, 88.8% in the Midwest and 45.3% in the other regions.

Exports were an estimated 42.0 MG last week based on 180 MG of exports forecast for June. The EIA reported no ethanol imports last week.

Overall inventory was down 9.6 MG last week. EIA-counted stocks decreased 8.1 MG, and regional changes were: East (-9 MG), Gulf (-3 MG) and West (-7 MG) Coasts and the Midwest (+12 MG). In-transit inventory decreased 1.5 MG.

Based on the total inventory of 1,759 MG on Jun 21st and the 4-week avg. domestic demand, there were 45.5 days of supply, unchanged versus a week ago. Including the 4-week avg. of net exports, there were 39.9 days of supply, down 0.3 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

Programming Note: No Rundown or Daily Fill-Up Due to Holiday

July 4, 2024

Get Bioethanol NASCAR Chicago Street Race

Chicago, IL

July 7, 2024

IN REGULATORY AFFAIRS

Above: the Michigan State Capitol in Lansing.

This morning, while most of the country was sleeping, the Michigan state legislature approved a budget package that includes a $0.05 per gallon tax credit for E15. Growth Energy worked diligently with state Reps. Will Snyder, Angela Witwer, and Reggie Miller to advance this incentive through the legislature, and our industry is grateful for their commitment to biofuels. We will continue to keep you posted as the incentive makes its way to Michigan Governor Gretchen Whitmer's desk for signature.

Last week, Growth Energy’s Senior Vice President of Regulatory Affairs Chris Bliley submitted comments to the California Air Resources Board (CARB) in response to the agency’s recent workshop on the state’s Cap-and-Trade program. The comments responded directly to CARB’s request for feedback on whether, and how, fossil denaturant in fuel ethanol should be reported and no longer exempt from the program. Noting the federal requirements for denaturant, Bliley urged CARB to maintain bioethanol’s exemption. “We believe the appropriate regulatory authority for bioethanol remains the [low-carbon fuel standard], and ARB should maintain bioethanol’s exemption in the Cap-and-Trade program. This allows California to continue maximizing bioethanol as a driver of greenhouse gas (GHG) reductions. Additionally, we encourage ARB to consider the use of higher bioethanol blends such as E15 to reduce greenhouse gas emissions.”

This week, the U.S. Department of Agriculture (USDA) released a Request for Information (RFI) on procedures for quantifying, reporting, and verifying the effect of climate-smart farming practices on greenhouse gas (GHG) emissions associated with U.S. biofuel feedstock crops.

The USDA is interested in seeking feedback on topics including:

1. Biofuel feedstock crops and practices for consideration in USDA’s analysis.
2. Scientific data, information, and analysis for consideration in quantifying the greenhouse gas emissions outcomes of climate-smart agricultural practices and conventional farming practices.
3. Records, documentation, and data necessary to provide sufficient evidence to verify practice adoption and maintenance.
4. Systems used to trace feedstocks throughout the biofuel supply chain.
5. Third-party verification of practice adoption and maintenance.

The RFI opens for a 30-day public comment period starting today, ending on July 26, 2024. It can be viewed here. 

Growth Energy filed comments on Monday in response to the U.S. Department of Energy’s Request for Information on Transforming Industry: Strategies for Decarbonization (DOE Seeks Input on Strategies to Decarbonize America’s Industrial Sector | Department of Energy). Our comments outlined the positive role for bioethanol in on-road, marine, aviation, and off-road applications, as well as the potential for other co-products within the broader bioeconomy. Read our full comment here.

Growth Energy's Dallas Gerber (right) with IN-CLIMATE CEO Sarah Beth Aubrey.

Growth Energy Director of State Government Affairs Dallas Gerber attended the IN-CLIMATE "Ag as the Solution" Summit in Indianapolis, Ind. this week. While there, Gerber gave a presentation on the status of the 40B and 45Z tax credits and discussed the opportunities that low carbon biofuels and the 45Z tax credit provide for farmers and the agriculture community. The Indiana Climate Summit is a gathering of professionals, producers, and government officials involved in the Midwest's food, energy, and climate industries. This event aimed to educate, inform, and create a dialogue with the idea of Ag as the Solution.

For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.

IN MEMBERSHIP

Redfield Energy LLC, a Growth Energy producer member, recently reached an important milestone—the company has officially produced one billion gallons of ethanol at their Redfield, S.D. plant. 

Growth Energy congratulated Redfield for breaking this major production threshold. "We are excited to celebrate with Redfield Energy as they produce their one billionth gallon of earth-friendly bioethanol,” said Growth Energy CEO Emily Skor. “At Growth Energy, we are proud that our members remain at the forefront of this new generation of plant-based solutions—we applaud Redfield for this monumental achievement and can’t wait to see what they have in store for the future.”

For more information, please contact Senior Vice President of Development Kelly Manning.

IN MARKET DEVELOPMENT

Above: Elite Octane's bioethanol plant.

Growth Energy recently hosted a plant tour for retailers at producer member Elite Octane in Atlantic, Iowa, led by Elite Octane's President and CEO Nick Bowdish. In all, nine fuel professionals from Casey's attended the tour, which also featured a presentation by Growth Energy's Vice President of Market Development Jake Comer on all things bioethanol.

For more information, please contact Vice President of Market Development Jake Comer.

IN GOVERNMENT AFFAIRS

Growth Energy CEO Emily Skor filling up with Unleaded 88.

Summer driving season is now underway, and we want to remind you to fill up with lower-cost, lower-carbon E15 (Unleaded 88) at the pump as you hit the road! 

Whether it's everyday errands or a cross-country road trip, join Growth Energy in our E15 Summer Challenge! Share your savings with us on social media using the hashtag #E15SummerChallenge!

For more information, please contact Vice President of Government Affairs John Fuher.

ON THE TRACK

Two Sundays from now, on July 7, the Get Bioethanol No. 3 Chevy will return to the Windy City for NASCAR's second Chicago Street Race! No. 3 driver Austin Dillon is looking forward to taking on the road race again this year.

Follow along here and catch the race Sunday July 7 at 4:30 PM ET on NASCAR on NBC!

For more information, please contact Senior Vice President of Development Kelly Manning.

Growth Energy's office will be closed Thursday, July 4. The Daily Fill-Up (your daily newsletter of media clips) will skip July 4 and resume its normal schedule the following day. The next issue of The Rundown will be sent July 11. We hope you have a wonderful holiday!

Growth Energy is the leading voice of America’s biofuel industry, delivering a new generation of plant-based energy and climate solutions.

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The Rundown is the weekly newsletter for Growth Energy's members. It is published weekly by the communications staff at Growth Energy. For more information, email team@growthenergy.org or visit our website GrowthEnergy.org. 

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