US ethanol plants idled as demand collapses
US ethanol producers are reducing output and idling plants, as margins tumble with prices amid coronavirus-related quarantine protocols that have slashed motor fuel demand.
Annual US ethanol output capacity has dropped by more than 3bn USG over the past month as producers reduce operations and idle plants, according to trade group Renewable Fuels Association (RFA). That is about 20pc of the roughly 15bn USG blended into the gasoline pool each year. About 30-40 plants are fully idle and another 40-50 have reduced output, RFA chief executive Geoff Cooper said.
Domestic ethanol production slid to a 22-week low in the week ended 20 March, while blending demand dropped to the lowest in six weeks, according to the latest Energy Information Administration data.
Margins on making ethanol from corn have been negative since mid-December as production outpaced demand, but the losses more than tripled this month. Margins fell yesterday to -77¢/bushel, from -24¢/bushel on 2 March, as plummeting crude prices outpaced lower corn futures, while spot ethanol prices hit record lows.
Prices for prompt in-tank transfers at Kinder Morgan's Argo terminal near Chicago have fallen by 34¢/USG, or 27pc, to 93.85¢/USG since early March, when the coronavirus pandemic began to cut fuel demand. US implied gasoline demand last week sank by nearly 9pc, according to the EIA.
Adding to the pressure on fuel prices this month, crude production surged after Opec+ failed to reach an agreement.
The deteriorating economic conditions led agricultural conglomerate The Andersons to idle a plant in Colwich, Kanasas, and shut four jointly owned plants for maintenance as part of a plan to reduce April output to half of capacity. Pacific Ethanol plans to cut production by at least 60pc by the end of this month. And Poet, one of the largest producers of ethanol in the US, is halting corn purchases at some facilities.
Some ethanol plants are shifting operations to produce high-grade ethanol for hand sanitizer and other cleaning products in recent weeks, according to RFA's Cooper. They include Absolute Energy (St. Ansgar, Iowa); Aemetis (Keyes, California); Chippewa Valley Ethanol Company (Benson, Minnesota); Grain Processing Corp. (Muscatine, Iowa, and Washington, Indiana); and Pacific Ethanol (Pekin, Illinois).
Even before the coronavirus outbreak and collapse of the Opec+ agreement, the ethanol sector was struggling from the US-China trade dispute that reduced ethanol exports and from federal waivers that exempted some small refineries from requirements for blending ethanol into gasoline.
A recent 10th Circuit court decision to reduce the number of refineries eligible for exemptions is a silver lining for the industry, as the exemptions have eroded ethanol demand since 2016.
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Etanol hidratado impulsiona início da safra 2024-25
Etanol hidratado impulsiona início da safra 2024-25
Sao Paulo, 26 April (Argus) — A produção de etanol no Centro-Sul aumentou 7,2pc na primeira quinzena de abril em relação ao ano passado, com produtores ainda favorecendo o hidratado em meio à demanda crescente. As usinas da região entregaram 841.000m³ ao mercado na primeira quinzena da safra de 2024-25, em comparação com 784.000m³ no mesmo período do ano anterior, segundo os dados mais recentes da União da Indústria de Cana-de-Açúcar e Bioenergia (Unica). A produção de etanol hidratado subiu 39pc e impulsionou a alta anual, totalizando 693.000m³. Já o processamento de anidro, utilizado como mistura na gasolina, caiu 48pc, para 174.000m³. As usinas permanecem destinando mais matéria-prima para o E100, em um cenário de paridade favorável para o biocombustível frente à gasolina na bomba. O hidratado está mais vantajoso para os motoristas em 80pc do mercado de combustíveis leves, disse a Unica. As plantas do Centro-Sul venderam 1,3 milhão de m³ de etanol para o mercado doméstico em abril, salto de 41pc na variação anual. As vendas de hidratado representaram 902.355m³ deste total, alta de 61pc, enquanto as de anidro subiram 14pc, para 448.431m³. Já as exportações totalizaram 52.104m³, queda de 6,2pc. O mix de produção na quinzena foi de 56,4pc para o etanol e 43,6pc para o açúcar, em comparação com 62pc para o biocombustível no mesmo intervalo em 2023. No período, a moagem de cana-de-açúcar avançou 14pc, para 15,8 milhões de t, à medida que a temporada inicia suas operações. Até 16 de abril, 171 usinas estavam operando no ciclo de 2024-25, número maior do que as 166 no mesmo intervalo do ano anterior. A Unica espera que mais 54 unidades recomecem as atividades durante a segunda metade do mês. O etanol à base de milho representou 32pc do volume total produzido na primeira parte de abril, somando 270.500m³, crescimento de 12pc na comparação anual. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Lyondell Houston refinery to run at 95pc in 2Q
Lyondell Houston refinery to run at 95pc in 2Q
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New technologies aim to boost SAF production
New technologies aim to boost SAF production
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Be8 quer ISCC de etanol para SAF em nova usina
Be8 quer ISCC de etanol para SAF em nova usina
Sao Paulo, 25 April (Argus) — A produtora de biocombustíveis Be8 buscará a Certificação Internacional em Sustentabilidade e Carbono (ISCC, na sigla em inglês) Corsia para comprovar que seu etanol à base de grãos está de acordo com as exigências internacionais para a produção de combustível de aviação sustentável (SAF, na sigla em inglês), contou hoje o CEO da empresa, Erasmo Carlos Battistella, à Argus . A companhia quer obter o certificado para sua nova e primeira planta de etanol, localizada em Passo Fundo, no Rio Grande do Sul. "Já estamos trabalhando nisso", disse Battistella. A usina terá capacidade de produzir 209.000 m³/ano do biocombustível e recebeu uma licença ambiental nesta semana. As operações devem começar em 2026. O ISCC é o principal sistema de certificação internacional para biomassa e bioenergia, com foco na sustentabilidade do uso da terra em conjunto com a rastreabilidade e a verificação dos gases de efeito estufa. Diversas empresas de etanol à base de cana-de-açúcar já receberam o certificado no Brasil – como Raízen, São Martinho, BP Bunge, Adecoagro, Copersucar e Zilor. A produtora de biocombustível de milho FS foi a primeira a conseguir o reconhecimento para o etanol de grãos. O Brasil, referência global em biocombustíveis como o etanol e o biodiesel, é considerado um grande player em potencial no SAF pela indústria de transporte aéreo e pelo Departamento de Energia dos EUA, devido à via de conversão pela tecnologia alcohol-to-jet (AtJ, na sigla em inglês). Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
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