Ethanol & Biodiesel Information Service

Pricing, News and Analysis for Buying and Supplying Ethanol-Blended Fuel and Biodiesel

September 21, 2015 Volume 12, Issue 38

Ethanol Futures (cts/gal contract price)
October 2015
CBOT

152.20

November 2015

December 2015

149.60

147.40

Settlement Thursday, September 17, 2015

January 2016
145.50
Source: Chicago Board of Trade

Ethanol & Gasoline Component Spot Market Prices

U.S. RINs (prices in U.S. $/RIN)
Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

U.S. Ethanol RINs

Current Yr

0.2850-0.3000

0.2850-0.2900

0.2800-0.3000

0.3000-0.3200

0.3150-0.3250

0.30000

Previous Yr

0.2950-0.3100

0.2950-0.3000

0.2900-0.3100

0.3100-0.3300

0.3225-0.3325

0.30950

U.S. Cellulosic RINs

Current Yr

0.6350-0.6450

0.6350-0.6450

0.6350-0.6450

0.6350-0.6450

0.6350-0.6450

0.64000

Previous Yr

0.4850-0.4950

0.4850-0.4950

0.4850-0.4950

0.4850-0.4950

0.4850-0.4950

0.49000

U.S. Biodiesel RINs

Current Yr

0.3800-0.3900

0.3800-0.3900

0.4100-0.4300

0.4300-0.4550

0.4400-0.4600

0.41650

Previous Yr

0.3600-0.3700

0.3500-0.3700

0.3700-0.4000

0.3900-0.4100

0.4000-0.4100

0.38300

U.S. Advanced Biofuel RINs

Current Yr

0.3750-0.3800

0.3400-0.3600

0.4100-0.4250

0.4200-0.4500

0.4300-0.4400

0.40300

Previous Yr

0.3200-0.3300

0.3200-0.3400

0.3700-0.4000

0.3800-0.4000

0.3900-0.4000

0.36500

Thurs. 09/17

Wkly. Avg.

Chicago (prices in U.S. $/gal.)

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Ethanol

1.4900-1.4910

1.5150-1.5250

1.5200-1.5270

1.5300-1.5400

1.5400-1.5420

1.52200

DP ETH

1.4900-1.4950

1.5150-1.5250

1.5250-1.5300

1.5300-1.5400

1.5400-1.5450

1.52350

B100 SME

2.5700-2.7500

2.5200-2.7000

2.5200-2.7000

2.5700-2.7300

2.5300-2.7000

2.62900

RBOB Unl

1.6349-1.6449

1.5193-1.5293

1.5829-1.6679

1.7071-1.7386

1.7860-1.7960

1.66069

RBOB Pre

2.3524-2.3624

2.3068-2.3168

2.3704-2.4554

2.3171-2.3486

2.3210-2.3310

2.34819

CBOB Unl

1.4149-1.4249

1.3693-1.3793

1.4329-1.5179

1.5421-1.5736

1.5460-1.5560

1.47569

ULSD

1.5650-1.5750

1.5185-1.5285

1.5150-1.5250

1.5539-1.5639

1.5447-1.5547

1.54442

Chicago Rule 11 (prices in U.S. $/gal.)

Current Yr

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.4600-1.4800

1.4900-1.5000

1.5000-1.5200

1.5300-1.5400

1.5100-1.5400

1.50700

Ethanol Market Overview:

Chicago ethanol breaks out

Chicago ethanol continued to step higher in
an orderly fashion over the last week and clearly
moved beyond the rangebound trading that
characterized the market through most of August
and through the first half of September.
Near-term bulk deals at the Chicago-areas
Argo facility reached $1.54/gal at midweek, and
by presstime had moved over that number, with
the last word showing transactions for material
available over the next week at $1.542/gal. The
latest trade talks indicated Chicago ethanol rolling
up gains of as much as 7.5cts week to week
and breaking out of the several cents either side
of the middle $1.40s/gal range that the market
inhabited for most of the last six weeks or so.
Backwardation did not disappear, but in some
cases became more pronounced in Chicago.
Even as timing rolled into the last dozen days of
the month, prompt values were said to fetch as
much as a penny over any-September volumes
that had reports of $1.53/gal trading. Some anyOctober traded $1.50/gal at midweek, and the
last discussions indicated it was still either side
of that number or about 2.75-3cts cheaper than
the any-September barrels.
Though market sources noted that ethanol
remained relatively costly against gasoline
values, demand for near-term ethanol, at least
in the Chicago-area bulk market, appeared to
pick up through the week. Spot CBOB in the
Windy City trading around $1.55 for the spot
gallon indicated about party, or perhaps a penny

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..............................................12

Key Supply and Demand

Statistics.................................................... 8

Ethanol & Biodiesel Information Service is an OPIS Publication

www.opisnet.com

News of the Week.....................................15

888.301.2645

energycs@opisnet.com

Ethanol & Biodiesel Information Service

September 21, 2015 Volume 12, Issue 38

Ethanol & Gasoline Component Spot Market Prices (prices in U.S $/gal.)
Gulf Coast
Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

Ethanol

1.5700-1.5800

1.5500-1.5800

1.5600-1.5800

1.5600-1.5900

1.5700-1.6100

1.57500

B100 SME

2.3900-2.7000

2.3000-2.6500

2.3000-2.6500

2.3500-2.6800

2.3100-2.6400

2.49700

RBOB Unl

1.2749-1.2849

1.1818-1.1918

1.2279-1.2629

1.3071-1.3171

1.3110-1.3210

1.26804

RBOB Pre

1.5399-1.5499

1.4468-1.4568

1.4929-1.5279

1.5721-1.5821

1.5760-1.5860

1.53304

CBOB Unl

1.2549-1.2599

1.1868-1.1918

1.2179-1.2479

1.2921-1.3046

1.3110-1.3260

1.25929

Unleaded

1.3174-1.3249

1.2468-1.2473

1.2779-1.2919

1.3371-1.3471

1.3360-1.3460

1.30724

ULSD

1.4525-1.4600

1.3960-1.4050

1.3915-1.4000

1.4289-1.4414

1.4127-1.4222

1.42102

61ULSD

1.4525-1.4600

1.3960-1.4050

1.3915-1.4000

1.4289-1.4414

1.4127-1.4222

1.42102

New York
Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

Ethanol

1.5600-1.5800

1.6000-1.6100

1.6000-1.6100

1.5900-1.6200

1.5950-1.6000

1.59650

ITT ETH

1.5600-1.5900

1.6000-1.6200

1.6000-1.6200

1.5900-1.6300

1.5950-1.6000

1.60050

Ethanol FWD

1.5400-1.5800

1.5700-1.5800

1.5700-1.5800

1.5650-1.6000

1.5700-1.5900

1.57450

B100 SME

2.4800-2.6300

2.4400-2.5700

2.4400-2.5700

2.4800-2.6000

2.4300-2.5600

2.52000

RBOB Unl

1.4199-1.4299

1.3543-1.3643

1.3179-1.3269

1.3671-1.3771

1.3610-1.3710

1.36894

RBOB Pre

1.8549-1.8649

1.7893-1.7993

1.5829-1.5929

1.6271-1.6371

1.6285-1.6385

1.70154

CBOB Unl

1.4249-1.4349

1.3593-1.3693

1.3219-1.3319

1.3711-1.3811

1.3650-1.3750

1.37344

CBOB Pre

1.8349-1.8449

1.7693-1.7793

1.5829-1.5929

1.6271-1.6371

1.6285-1.6385

1.69354

Unleaded

**********

**********

**********

**********

**********

*****

ULSD

1.5125-1.5225

1.4660-1.4760

1.4625-1.4725

1.5039-1.5139

1.4922-1.5022

1.49242

Los Angeles
Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

Ethanol

1.6400-1.6600

1.6400-1.6550

1.6500-1.6700

1.6650-1.6750

1.6700-1.6900

1.66150

CARBOB - R

1.5649-1.5749

1.5593-1.5693

1.5729-1.5829

1.6321-1.6421

1.6610-1.6710

1.60304

CARBOB - P

2.0049-2.0149

1.9993-2.0093

2.0129-2.0229

2.0721-2.0821

2.1010-2.1110

2.04304

ULSD

1.4625-1.4675

1.4110-1.4210

1.4075-1.4175

1.4489-1.4589

1.4864-1.4964

1.44776

Nebraska (fob Railcar)

Ethanol

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.3700-1.3900

1.3700-1.3900

1.3900-1.4200

1.4100-1.4150

1.4200-1.4250

1.40000

Tampa
Ethanol

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.6600-1.6800

1.6600-1.6800

1.6600-1.7000

1.6700-1.7150

1.6800-1.7250

1.68300

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.5300-1.5600

1.5300-1.5600

1.5300-1.5800

1.5450-1.5800

1.5550-1.5900

1.55600

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.6400-1.6600

1.6400-1.6550

1.6500-1.6700

1.6650-1.6750

1.6700-1.6900

1.66150

Dallas
Ethanol

San Francisco
Ethanol

Pacific Northwest
Ethanol

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

1.6300-1.6400

1.6200-1.6300

1.6200-1.6400

1.6350-1.6450

1.6700-1.6900

1.64200

Calif. Low Carbon Fuel Standard

Carbon Credit: $/MT; Carbon Intensity Pts: $/CI; Carbon Credit per Gallon Diesel: $/gal;
Carbon Credit per Gallon Gasoline: $/gal)
Carb Credit
CI Pts

Fri. 09/11

Mon. 09/14

Tues. 09/15

Wed. 09/16

Thurs. 09/17

Wkly. Avg.

62.000-68.000

63.000-65.000

64.000-66.000

64.000-65.000

64.000-66.000

64.7000

0.00510-0.00550 0.00510-0.00530 0.00520-0.00540 0.00520-0.00530 0.00520-0.00540

0.005270

CC Dsl

0.0082-0.0090

0.0083-0.0086

0.0084-0.0087

0.0084-0.0086

0.0084-0.0087

0.00853

CC Gas

0.0090-0.0099

0.0092-0.0095

0.0093-0.0096

0.0093-0.0095

0.0093-0.0096

0.00942

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
Formulacolumn 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 Californias 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

September 21, 2015 Volume 12, Issue 38

advantage, versus near-term spot ethanol.

However, Gulf Coast markets had cash ethanol values
running 20cts or more over spot CBOB, while New York
Harbor blenders looked at spot gasoline that underpriced
ethanol by 23cts or so.
Spot prices still gained elsewhere as well last week, but not
as much as Chicago. New York Harbor barges that remained
around $1.60/gal for September represented an increase of
4cts or so week to week, while on the West Coast, California
Bay Area rail cars last trading prompt at around $1.68/gal
moved 4-5cts firmer on the week.
Ethanol prices continued to hold up even as corn markets
weathered several losing sessions in a row. Ethanol values
also seemed to shake off the volatile swings in gasoline
trading as NYMEX futures started last week with steep losses
before crawling back into midweek.
There is also the drag of demand damage that is widely
anticipated as Labor Day and summer driving retreat into the
rearview mirror. The first post-Labor Day report from EIA had
net blender inputs of ethanol sliding back for the second week
in a row, taking them down 18,000 b/d, or 2% in the last week
to 878,000 b/d. That is the lowest ethanol input level reported
since May, and it is also off 4.7% in the last two weeks.
At the same time, conventional gasoline blending with
ethanol dropped 95,000 b/d week to week, a 1.7% loss that
left it at a 23-week-low, 5.671 million b/d. Overall gasoline
demand also eased under 9 million b/d for the first time since
summer began, and it is down more than 5.5% over the last
two weeks, according to EIA figures.

Ethanol production rates remain a mild surprise to some

who anticipated tight margins, and recent summer heat might
quell output. At 961,000 b/d, ethanol output added 3,000 b/d
from the week before and climbed 1.4% over the last couple
of weeks. Midwest plants did keep production steady week
to week, at 872,000 b/d, accounting for 90.7% of all output.
However, ethanol inventory netted lower for a second
consecutive week, with EIA showing a 352,000 draw for the
week, to 18.291 million bbl. Over the last two weeks, the
agency has supply off 3.7% and currently standing at its lowest
level since December. Stocks also ran 2.7% behind what EIA
reported for inventory during the same week last year.
Small builds showed in some regions, but large draws out
of Midwest and Gulf Coast ethanol storage, down 3.4% and
5.2% week to week, respectively, sank supply nationally.
East Coast ethanol stocks are also well behind the same time
last year down 11.4%, or about 818,000 bbl, against 2014
stores, according to EIA figures.
Reports of ethanol loadings out of Brazil mostly aimed
at U.S. markets have yet to show up in weekly EIA reports,
which counted virtually no U.S. ethanol imports for the
second week in a row.
Spencer Kelly, skelly@opisnet.com

E15 blending advantage stumbles

into autumn
Sept. 15 represents the metaphorical start for the
availability of much of the countrys E15 motor fuel, but
some marketers have been in no rush to move back to the

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)

Splash Blend Splash Blend

Rack Price Producer Prices

City, State

Spot Prices
(Rack)

Rack Price

Producer
Prices

Albany, NY

155.00

150.00

159.00

N/A

N/A

Cleveland, OH

154.00

170.90

N/A

Houston, TX

159.00

153.00

NYMEX RBOB
Unl -29.5

108.10

163.50

N/A

N/A

Decatur, IL

150.00

185.00

N/A

New Haven, CT

163.50

158.25

NYMEX RBOB
Unl -26.5

111.10

N/A

N/A

N/A

Des Moines, IA

147.00

158.32

155.98

New York, NY

159.75

154.75

NYMEX RBOB
Unl -30

107.60

164.75

N/A

N/A

Chicago, IL

154.10

145.00

NYMEX RBOB
Unl -40

97.60

157.00

155.00

155.00

Louisville, KY

153.00

N/A

N/A

N/A

156.00

N/A

N/A

Minneapolis, MN

148.50

N/A

N/A

N/A

152.50

171.61

168.45

St. Louis, MO

155.00

146.50

NYMEX RBOB
Unl -38

99.60

158.50

219.50

N/A

Los Angeles, CA
(90.1)

168.00

158.25

NYMEX RBOB
Unl -25

112.60

173.50

N/A

N/A

Phoenix, AZ

165.50

156.50

NYMEX RBOB
Unl -27.5

110.10

N/A

180.00

180.00

San Francisco, CA
(90.1)

168.00

158.25

NYMEX RBOB
Unl -25

112.60

173.50

N/A

N/A

Pacific Northwest

168.00

N/A

N/A

N/A

N/A

240.00

N/A

Doniphan, NE

145.00

158.53

156.05

Fargo, ND

145.00

166.37

163.79

Indianapolis, IN

154.00

N/A

N/A

Kansas City, KS

146.50

166.79

164.98

Madison, WI

151.00

168.38

N/A

Omaha, NE

147.00

158.59

156.86

Peoria/Pekin, IL

149.00

N/A

N/A

Sioux City, IA

145.00

161.93

155.75

Sioux Falls, SD

146.50

160.20

156.43

Topeka, KS

146.00

169.11

164.56

Wichita, KS

147.50

169.37

168.50

Denver, CO

157.50

231

169

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Ethanol & Biodiesel Information Service

blend that can only be legally sold in many states when RVP
restrictions have eased.
A sharp decline in D6 RINs, together with stubbornly high
prices of ethanol relative to gasoline, removed much of the
advantage that E15 held last spring, ahead of the low-RVP
season.
Chicago marketers in late April, for example, paid about
$1.80/gal for conventional blendstock, or CBOB, but they
were able to procure ethanol for about $1.60/gal. Blending
85% CBOB and 15% ethanol at the time yielded a linear cost
of $1.77/gal, or about a penny below E10.
However, the spring magic for these formulae came by way
of high RINs values.
Renewable Identification Numbers for ethanol were pegged
around 75cts at the time, and thanks to the generation of
those RINs, the bottom line price for E15 could be reduced
by an additional 11.25cts/gal, to $1.6575/gal. That worked out
to a wholesale price advantage of nearly a nickel for retailers
intrepid enough to offer E15 to their customers.
Economics are still favorable for E15 in Midwestern
markets close to ethanol plants, but the edge is minimal, and
advantages disappear as one moves away from ethanol hubs.
For example, recent values for Chicago CBOB were around
$1.56/gal, with ethanol valued at $1.52/gal. The 85%/15%
linear blend yielded a value of $1.554/gal, or just a fraction
below the E10 value of $1.556/gal. And with D6 ethanol RINs
now pegged at about 30cts, the difference between the net
cost of E10 and E15 was less than 1.75cts/gal ($1.509/gal for
E15 blend and $1.526/gal for E10).
Whats worrisome for pro-E15 marketers is the forward
market. Trading in the fourth quarter of 2015 is fairly thin,
but buyers say they can purchase Chicago CBOB for about
$1.20/gal late this year, versus values of $1.47/gal for ethanol.
If RINs stay around 30cts, the calculus results in less
than 0.25cts/gal difference in the net rack prices for both
products. If RINs were to drop a few more pennies, the E10
price could actually fall below the cost of the E15.
With the summer ozone season recently coming to an end,
more stations in more places will have the option to offer
E15 blends. The period under which E15 cannot be sold to
non-flexible fuel vehicles in some parts of the country is from
June 1 to Sept. 15. The restriction is in place because E15
blends do not receive the same 1-psi Reid Vapor Pressure
volatility waiver that is granted to E10.
In addition, the latest on D6 RIN prices had values for the
2015 vintage apparently edging back up from sub-30cts/
RIN lows traded earlier last week. Trading prices recovered
to 32.25cts/RIN at the latest look, with offers backing up to
33cts/RIN. That still left current-year D6 RINs trading about
18% cheaper than they did a month ago.
Some cargo importers moved into the market, sources

September 21, 2015 Volume 12, Issue 38

noted, procuring RINs necessary to fulfill obligations as more
gasoline moves onshore from foreign refineries. Attribution to
importer needs may be off-target, since New York gasoline
markets appear balanced and not facing great selling
pressure on any of the autumn fuel grades.
Tom Kloza, tkloza@opisnet.com

Georgia Terminal Operator Eyes Ethanol Storage

Epic Midstream, a Houston-based owner of fuel storage
terminals, is interested in building a railroad spur on property
it owns near Macon, Ga., and installing ethanol tankage at its
current Macon facility, Epic Midstream CEO David Vattimo
told OPIS recently.
Epic Midstream proposed the project about six months
ago, and it needs partial rezoning of one of two property
parcels it owns. But unexpected community opposition has
led to delays in votes by the Macon-Bibb County Planning
& Zoning Commission most recently on Sept. 14, when
Epic Midstream asked to defer consideration until the Zoning
Commissions next meeting, on Oct. 12.
Were disappointed by the opposition and the delays,
Vattimo told OPIS. We want to construct a loop track unit
train facility for a customer.
The track would connect with Norfolk Southerns rail line,
from which ethanol could be pumped from tank cars and
stored at Epic Midstreams Macon tank farm. It would not be
Epic Midstreams first experience with biofuels.
At Macon, Epic Midstream has 14 tanks, which store and
distribute jet fuel and jet fuel additives, #2 fuel oil, ULSD,
transmix and biodiesel. In 2014, Epic Midstream customer
U.S. Oil began providing biodiesel at Epics Macon, Bremen,
Ga., and Montgomery, Ala., facilities. Epic Midstream also
stores ethanol for customers at a few terminals.
Vattimo said he believes the opposition to the storage and
rail facility stems from a pipeline spill in the 1980s incurred by
a previous owner.
Remediation had to be done. There are about 15 houses
across the street from our proposed project, and its a
sensitive issue, even though we were not the owner or
involved in the spill or the cleanup, he said.
Epic Midstream has four pipeline service terminals in
Georgia and Alabama, a marine service terminal in Savannah,
Ga., and a pipeline terminal in Alamogordo, N.M. In total, its
77 tanks have more than 2 million bbl of shell capacity.
Kevin Adler, kadler@opisnet.com

EPA: Biofuel output eases in August

Biodiesel production in the U.S. took a breather for the first
time in six months, according to monthly tracking numbers
reported by the U.S. EPA that also showed corn ethanol in
August slipping back for the second straight month.

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September 21, 2015 Volume 12, Issue 38

Biomass-based diesel production at nearly 185.02

million gal during August retreated 3.98% from July, down
almost 7.67 million gal, according to data accumulated and
recently released from EPAs Moderated Transaction System
(EMTS). The system tracks Renewable Identification Number
(RIN) credit generation for compliance under the federal

Renewable Fuels Standard, and the latest figures halted a

string of month-to-month increases for domestic biodiesel
production that stretched back to March.
Most of the figure that comes from EPAs D4 biomassbased diesel credits represents traditional biodiesel
production, about 156 million gal last month, which is some

National Renewable Fuels Averages

Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

153.775

176.546

163.128

160.829

E-85 Retail (w/ tax)

211.188

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

336.935

175.356

166.080

--.--

165.455

162.764

Key Renewable Fuels Regional Averages

Northeast
Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

159.750

--.--

151.080

177.100

E-85 Retail (w/ tax)

217.914

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

316.500

173.460

194.000

--.--

160.203

161.631

Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

E-85 Retail (w/ tax)

159.750

174.000

148.551

162.085

225.023

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

287.500

155.319

180.190

--.--

154.042

153.176

Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

E-85 Retail (w/ tax)

Southeast

Gulf Coast
159.000

188.951

155.016

158.369

197.842

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

299.431

154.393

148.559

--.--

156.210

157.380

Midwest
Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

E-85 Retail (w/ tax)

148.175

170.585

173.127

168.063

194.837

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

309.139

177.124

184.010

--.--

166.909

166.795

Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

E-85 Retail (w/ tax)

Rockies
159.000

175.688

181.608

160.000

206.400

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

--.--

169.075

159.500

--.--

165.675

162.180

E-85 Retail (w/ tax)

West Coast
Ethanol Spot

Ethanol Rack w/ RIN

Ethanol Blended Rack Gasoline (10%)

E-85 Racks

167.375

180.000

173.311

184.577

303.983

B100 w/ RIN

B20 w/ ULSD

B15 w/ ULSD

B10 w/ ULSD

B5 w/ ULSD

B2 w/ ULSD

426.300

204.030

150.750

--.--

191.489

174.950

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6% off of July estimates, but a smaller portion also comes
from renewable diesel output. For August, renewable diesel
represented about 15.7% of the D4 total, or 29 million gal,
according to estimates from the National Biodiesel Board.
Thats actually 9.4% ahead of where it was estimated for July.
Compared to EPA figures from the same month last year,
biomass-based diesel production for August is up 27.5%
versus the 2014 month.
The August EPA figures come on the heels of other
government estimates pointing to more biodiesel production
this year, and next year, as well. The latest monthly forecast
for biodiesel production from soy indicated the agency
boosted its outlook for the 2015-2016 crop marketing year by
almost 2%, the first adjustment in its data yet this year.
In addition, EIA forecasters recently said they now expect
U.S. biodiesel plants to average 92,000 b/d this year, which
would be 13.6% more than they collectively averaged last year.
Meantime, the number for D6 grain-based RIN generation
over August indicated ethanol output at nearly 1.237 billion
gal, and that is down 1.79% from July and the second slip in
a row suggested by EPAs monthly data. A year ago, EPA also
showed ethanol output sliding back in August, so the yearon-year comparison still has 2015 running 2.74% ahead.
The rise of cellulosic biofuel under EPA accounting
continued for the fifth month in a row, with August D3 RIN
numbers suggesting nearly 13.777 million gal, for a 5.98%
climb from July and a 10.3% gain over the last two months.
August output D3-linked cellulosic biofuel is nearly four times
what it was the same time last year, when the biofuel first
came on the scene in a significant way after EPA expanded
the definition of cellulosic biofuel for D3 RIN generation to
include products such as renewable clean natural gas and
renewable liquefied natural gas.
The volume of fuel linked to D5 advanced biofuel RINs also
climbed month to month, shooting up almost 238% from July
to more than 14.339 million gal. The year-on-year gain was
almost as gaudy for the D5 category, according to EPA.
Meantime, the output of cellulosic diesel under EPAs D7
RIN code did make a showing lightly for only the second
time this year and after a couple months of virtually nothing
showing on the EPA ledger. The 53,303 gal in August are well
over the 5,532 gal reported a year ago.
In total, the categories of RIN-producing fuels output
indicated a total of nearly 1.45 billion gal during August, and that
is 1.25% behind the July total, but would also indicate 6.87%
more than the agency reported for the same time last year.
Spencer Kelly, skelly@opisnet.com

September 21, 2015 Volume 12, Issue 38

Stock Market Movers:

Company profile: Dyadic International

With Pacific Ethanols completed merger with Aventine
Renewable Energy Holdings on July 1, OPIS removed
Aventine from the weekly stock chart and replaced Aventine
with Dyadic International Inc.
Located in Jupiter, Fla., Dyadic is a global biotechnology
company with a focus on developing, manufacturing and
selling enzymes and other proteins for use in the bioenergy,
biochemical, industrial enzymes an biopharmaceutical
industries.
According to the companys latest financial results from
the second quarter, [o]ur current product offering, the
CMAX product line, along with the C1-based enzymes
developed by our licensee Abengoa, are recognized for their
excellent performance characteristics at converting natural
fibers (biomass) such as corn stover, and wheat straw into
fermentable sugars and through our continued research
efforts we expect to continue developing even better
performing CMAX enzymes at lower manufacturing costs.

Weekly Biofuels Stock Performance

Company

Symbol

9/17/15

9/10/15

change

% change

Abengoa

ABGB

5.80

5.96

-$0.16

-2.68%

Aemetis

AMTX

3.70

3.09

$0.61

19.74%

Amyris

AMRS

1.79

1.76

$0.03

1.70%
2.27%

Andersons

ANDE

35.54

34.75

$0.79

Archer Daniels Midland

ADM

44.19

43.06

$1.13

2.62%

BIOX Corporation

BX.TO

1.14

0.95

$0.19

20.00%

Bluefire Ethanol Fuels

BFRE

0.01

0.00

$0.01

138.10%

Bunge

BG

71.67

70.20

$1.47

2.09%

Cosan

CZZ

3.46

3.29

$0.17

5.17%

Codexis

CDXS

3.78

3.50

$0.28

8.00%

Dyadic International

DYAI

0.95

0.90

$0.05

5.56%

FutureFuel Corp.

FF

10.23

10.20

0.03

0.29%

GEVO

GEVO

2.23

2.22

$0.01

0.45%

Green Earth Technologies

GETG

0.02

0.02

$0.00

0.00%

Green Plains

GPRE

21.26

20.60

$0.66

3.20%

GreenHunter Resources

GRH

0.48

0.53

-$0.05

-9.43%

Novozymes

NVZMY

43.83

44.81

-$0.98

-2.19%

Pacific Ethanol

PEIX

7.01

7.19

-$0.18

-2.50%

Renewable Energy Group

REGI

8.05

8.45

-$0.40

-4.73%

REX American Resources

REX

52.61

50.65

$1.96

3.87%

Solazyme

SZYM

3.06

2.88

$0.18

6.25%

Valero Energy

VLO

60.30

62.91

-$2.61

-4.15%

DJIA

DJI

16,739.95

16,330.40

$409.55

2.51%

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Ethanol & Biodiesel Information Service

In October, Dyadic announced the receipt of a $500,000
licensing payment from Abengoa Bioenergy for commercial
scale production of Abengoas proprietary cellulose
enzymes, developed under Abengoas license agreement
with Dyadic.
Abengoa began operating a 25 million gal/yr advanced
biofuels plant in Hurgoton, Kan., that generated the licensing
payment. Dyadic reported in its financial earnings review that
the operation at the facility has been delayed. The company
expects to receive royalties from the facility, but not in the
remainder of 2015.
Dyadic sells more than 55 liquid and dry enzyme products
to over 150 industry customers in approximately 50 countries.
At market close on Sept. 17, Dyadic stock was 95cts/share,
up a nickel compared to closing at 90cts/share on Sept. 10.
On Dec. 31, 2014, Pacific Ethanol announced that it
planned to acquire Aventine Renewable Energy and its
several Midwestern ethanol plants for about $190 million
in stock. The proposed merger was approved by both
companies shareholders on June 11.
As of the July 1 acquisition, Pacific Ethanol owns and
operates eight ethanol production facilities that have a
combined annual production capacity of 515 million gal.
Molly M. White, mmwhite@opisnet.com

Inside Washington:

EPA administrator: RFS targets

have to pass muster in likely court battle
Washington, D.C. EPA is committed to growing the
U.S. biofuels industry, but will do so in a way that is legally
defensible in court, EPA Administrator Gina McCarthy told
attendees here last week at Growth Energys sixth annual
Advocacy Conference.
As part of EPAs 2014-2016 Renewable Fuel Standard
(RFS2) proposal, issued on May 29, the agency aims to scale
back conventional biofuel targets to account for concern
surrounding the ethanol blend wall while calling for a greater
amount of second-generation biofuels.
The agency is expected to finalize the RFS targets by
Nov. 30, and it is widely expected that the rule will end up in
litigation.
The biofuel industry is the great American success story,
said McCarthy in her remarks, noting that the U.S. is the
largest producer and consumer of biofuels in the world. The
EPA proposal has to continue to build on that success and
spur on ambitious, yet achievable growth, she said. We are
working hard to make sure we are moving towards the [RFS]
levels intended by Congress, she added.
After her prepared remarks, one audience member asked
McCarthy to rationalize why the EPA proposed to lower the

September 21, 2015 Volume 12, Issue 38

RFS targets, specifically focusing on the conventional biofuel
carve out, when the industry is producing above capacity.
Can I be blunt? We have been using the cellulosic waiver
[authority] for a while, McCarthy responded. Cellulosic just
didnt progress, I think, at the rate that Congress thought
it would, she said, noting that the RFS targets also had to
account for the ebbs and flows of how much gasoline was
being produced.
There have been various attempts by EPA when we go to
court [on the RFS] to try to bring some larger picture policy
issues to the table when we make our decisions that have
fallen very flat on the courts, she said. The RFS wasnt a
rule that had congressional history attached to it, so the only
thing we had to look at was the four corners of the language
in the statute, she added.
The RFS is a very difficult statute for us to get our head
around when you have as big a leap in production as
Congress intended, McCarthy continued. I am readily
saying my job is to reach those levels. First, theres no reason
why I wouldnt want to, but secondly, it is my job to. The
question I have is, how do I do this in a way that the courts
will actually see the same as I do, as being a reasonable
interpretation of that law.
We have had lots of back and forths of what it means
or doesnt mean, McCarthy continued. Were still in the
position of looking at the [RFS proposal] comments and
understanding where we missed the boat.... My job is not
just to respond to what Congress says, but to respond to
changes in the world, she said. I have to ... [issue RFS
targets] in a way I think will pass muster because the last
thing I want is to give you what you want and we fall flat when
we get to the courts. Zero win.

Advanced biofuel groups urge Obama to finalize

strong RFS
Nearly dozen advanced biofuel executives are urging
President Obama to help reverse the proposed cuts in the
Renewable Fuel Standard (RFS2), warning that otherwise,
their companies will be forced to look overseas where
renewable fuel policies are more stable.
...[O]ur industry is ... dealing with the reality that on May
29, your administration re-proposed to insert a loophole
into the RFS ... that would allow oil companies to avoid
their obligations under the law, wrote the advanced biofuel
executives in a letter sent last week to Obama. As you know,
the point of the RFS was to require oil companies to buy
and sell an increasing amount of renewable fuel to address
the fact that the oil industry would otherwise use its market
position to cut off market access for competitors and thereby
smother investment in cellulosic ethanol and advanced
biofuels that have the lowest carbon footprint in the world.

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September 21, 2015 Volume 12, Issue 38

In Key Commodity Markets:

And yet, for the first time in RFS history, EPA is proposing
to change the rules in the middle of the game to allow
challenges related to the distribution of renewable fuel by
oil companies ... to be cause for waiving the RFS on a yearto-year basis. Such a provision would gut the core concept
behind the law.

In finished markets...

EPAs decision to change its waiver methodology, under

pressure from the oil industry, upends the system and sends
the market signal that the RFS volumes can be lowered if the
oil industry simply drags its heels. The point of the RFS was
to reward those who made the investments necessary to use
more renewable fuel. Parts of the oil industry refused to do so
starting in 2013, and now theyre being rewarded. No marketbased system can survive if regulators are willing to overhaul
the system to reward intransigence among obligated parties,
the letter continued.
Mr. President, the ramifications of your decision on this
issue are substantial for Americas largest renewable energy
sector. If the final rule includes distribution waivers, the global
market signal will be that your administration is backing away
from its support of the most transformative U.S. energy and
climate policy on the books today; and one that is widely
regarded to be the best cellulosic and advanced biofuels
policy in the world. While our companies will not fail to deploy
advanced biofuels, we will continue to be forced to look
overseas where renewable fuel policies are more stable, the
letter noted.
Rachel Gantz, rgantz@opisnet.com

The broader petroleum markets reached something of a

pause over the last week as most bulk gasoline markets in
the U.S. transitioned to fall-season fuel, bouncing off the
lowest numbers that transition helped to generate.
During the early part of the last week, Gulf Coast spot
gasoline dropped near the $1.18/gal, before stabilizing and
firming back up in the latter part of the week. Gulf Coast spot
CBOB by Thursday fetched $1.3185/gal outright, on trading
5.75cts under the Merc, and that is 3.64cts more than weekago deals. Also, the differential tightened considerably the
cash discount being half what it was a week ago.
Some Gulf Coast refinery issues also helped bolster spot
values in the region.
Other than the Gulf Coast, West Coast differentials stood.
With the CARBOB market in L.A. currently in a contango
state, the September market was catching up to October, and
that helped lift the prompt month to a 29cts premium versus
the futures market in both L.A. and San Francisco. The
October market is holding some strength over September as
refinery turnarounds and import levels are expected to drop
next month.
Chicago gasoline actually soared for a time because of
growing concerns over the adequacy of prompt supply in the
region.
Market sources reported early last week that BP shut down
the largest of two coker units at its 160,000-b/d refinery in
Toledo, Ohio, operated as a joint venture with Husky Energy.
News of the shutdown, as well as expectations for weaker

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

Current

Prev Mo

PADD 1 Inventories

6,343

6,325

6,440

PADD 1 Inventories

60,800

57,400

52,833

PADD 1

753

744

687

PADD 2 Inventories

5,901

6,107

5,672

PADD 2 Inventories

48,000

49,100

48,000

PADD 2

27,166

27,186

25,169

PADD 3 Inventories

3,362

3,546

3,052

PADD 3 Inventories

73,600

73,900

72,600

PADD 3

749

669

576

PADD 4 Inventories

333

321

328

6,733

PADD 4

433

472

436

PADD 5 Inventories

2,352

2,344

2,266

PADD 5

583

595

495

Total Inventories

18,291

18,643

17,758

Total Production

29,684

29,666

27,364

PADD 4 Inventories

6,800

6,800

PADD 5 Inventories

28,300

27,400

27,533

Total Inventories

217,500

214,600

207,700

3-Yr Avg

Gasoline Production
Gasoline

Current

Last Week

3-Yr Avg

PADD 1

2,959

3,139

2,873

PADD 2

2,572

2,648

2,289

PADD 3

2,249

2,059

1,956

PADD 4

321

308

311

PADD 5

1,607

1,678

1,574

Total Production

9,708

9,832

9,004

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Ethanol & Biodiesel Information Service

September 21, 2015 Volume 12, Issue 38

production during the upcoming turnaround season, helped

send Chicago spot trading levels skyward earlier in the week.
Spot CBOB trading 17.5cts over the Merc by Thursday more
than tripled the week-ago premium, and outright values at
$1.551/gal climbed 10.74cts in the week-to-week comparison.
In fact, Chicago RBOB jumped to the most expensive spot
gasoline barrel in the country, running over $1.79/gal outright
on premiums that topped 41cts against the Merc. Outright
Chicago RBOB values climbed 14.74cts week to week.
It is notable that the shift in gasoline RVP from low summer
levels to higher winter levels in the New York Harbor helped
pull prices lower and moved spot RBOB to a slight discount
versus the futures market for prompt barrels.
The broader market, however, is likely to look to the
Federal Reserve for some direction, with the Feds recent
decision to leave interest rates unchanged not constituting
a surprise to the market, but also removing key uncertainty.
The direction of the market was not necessarily obvious after
the announcement, but volumes did perk up. The decision
to hold interest rates flat stems largely from concerns about
recent global and financial developments, with China being a
major concern.
The thinking is that the U.S. dollar should at least get some
short-term pressure and so keep oil markets somewhat
stable. NYMEX crude for front-month October eased 25cts
Thursday and at $46.90/bbl picked up only 98cts week to
week. Refinery maintenance season is an issue for crude, but
it could also help stabilize gasoline prices.
The Mercs RBOB for October also eased Thursday, down
61pts, and at a $1.3760/gal settled price still ran 1.76cts lower
against the week-ago settle. The modest downturn came
after gasoline prices on the Merc popped nearly a nickel
higher in the wake of the weekly supply report from EIA.
The government reported U.S. gasoline inventories added
2.8 million bbl for the week ending Sept. 11, hitting 217.4
million bbl around 7 million bbl higher than stocks at about

the same week last year. That stock build, largely driven by
inventory additions in the East and West coasts, also came
with demand indications that not unexpectedly dropped for
the second consecutive week.
While overall gasoline demand implied by weekly EIA
numbers slipped only 0.38% week-to-week, a downturn of
34,000 b/d, it also followed up a big loss the previous week
that together amounted to 5.5% in demand erosion, which took
average offtake under 9 million b/d for the first time in 14 weeks.
If these wholesale prices continue to firm, things will
change on the street, but average U.S. retail gasoline is on
the cusp of falling below $2.30/gal, according to GasBuddy.
com, with three states in the Southeast currently having
average retail prices below $2/gal, and there are a couple
more knocking on the door.

In natural gas...
Autumn is in the offing, and that will bring the so-called
shoulder season of lower demand for natural gas before
winter heating needs start to kick in. Gas markets outside
the Northeast looked heavy through last week, and an asexpected weekly stock build did not do much to change the
basic trajectory of the market.
Henry Hub spot gas traded flat day-to-day to run $2.68/
mmbtu Thursday, which led to a loss of 3cts over the last
week. Chicago Citygate gas also looked flat over the last
couple of days, eventually losing a penny Thursday, and at
$2.69/mmbtu that had spot prices off 2cts week to week
in that market. Northeast gas was sometimes much more
volatile and mixed over the last week, but it was a response
to the immediate demands of weather, and by Thursday a lot
of the trading came before the EIA storage report.
No surprises from EIA had October natural gas ending
off less than a penny Thursday, after picking up some value
ahead of the report. October NYMEX contracts settled down
80pts for the Thursday session, at $2.652/mmbtu, and that

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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Ethanol & Biodiesel Information Service

was 6.8cts down week to week. Paper prices did recover
from their largest drop in the wake of a EIA report that
showed natural gas stockpiles adding 73 bcf over the week
before to put inventory 16% ahead of the same time last year
and 4% over the five-year average.
Meantime, in a midweek report, EIA noted that the average
cost of gas going into storage since April is much less than over
the same period last year. The estimated average unit value of
the natural gas put into storage from April 3 to September 11
this year is $2.76/mmbtu, 36% lower than the average value of
$4.33/mmbtu for the same 24 weeks last year.

September 21, 2015 Volume 12, Issue 38

At the start of the week, the USDA reported that corn
conditions were actually a bit better than some might have
expected, given that some market sources expected a bit of
erosion in the estimates. Instead the agency reported 68%
of the crop in good-to-excellent condition, just as it has for
three weeks running now. A year ago, the agency rated 74%
of the crop in either good or excellent shape.
USDA also reported that 35% of the crop is considered
mature by Sept. 13, and that is up from 20% the week
before and 25% last year, though it still trails the 40% fiveyear average.

EIA also noted an easing in production week to week,

down 0.8% to average 71.9 bcf/day, but that is still 2.9%
higher than the same week last year. Supply was indicated
1.4% lower week to week, added EIA, but consumption also
dropped. U.S. consumption decreased by 5% overall, said
EIA, adding that the downturn included a 15% drop in gas
used for power generation during the week.

Global demand for U.S. corn appeared to disappoint later

in the week. Corn exports sales and shipments are sagging
below the pace needed to meet USDA export expectations
for the current marketing year. Shipments for corn through
the first couple of weeks of the marketing year that began
with September are down 24% compared with the same time
last year.

The NYMEX six-month futures contract strip averaged

nearly $2.8677/mmbtu at Thursdays settle, nosing up more
than 3.28cts week to week and adding a bit to its premium
over Henry Hub cash values at neared 18.77cts at the time.

Weather in the Corn Belt has also been mostly supportive

for the crop as harvest gets underway. By the end of the
previous week, the harvest was only 5% complete, with
places such as Texas and North Carolina the most advanced
at this point, and that is behind the 9% five-year average for
this time of year, but ahead of 4% reported a year ago.

In corn markets...
Corn markets retreated from their post-USDA-forecast rally
that they mounted a week ago. Front-month December corn
dropped 6.25cts on the CBOT futures board Thursday, but
the $3.7975/bu settle still ran 5.5cts more than the contract
did a week ago.
CBOT corn for March also shed 6.25cts Thursday to settle
at $3.91/bu, and that is also 5.5cts more than a week ago.

Corn, and other commodity moves, were said to be cautious

and restrained lately as players mulled the latest decision by
the Federal Reserve to leave U.S. interest rates unchanged.
As the harvest starts to gear up, more pressure is expected
to come to spot corn markets. Kansas City No. yellow
truck cash corn ran $3.5975-$3.6275/bu. At the same time,
Chicago No. 2 yellow corn talks ran at $3.6175-$3.9275/bu.

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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September 21, 2015 Volume 12, Issue 38

In biodiesel...

Meantime, B100 rack prices nationally averaged $3.369/

gal by Thursday, easing 1.7cts on the week, while on-road
petroleum diesel at the rack had a similar slip in value, down
1.67cts to average $1.609/gal. That had B100 running an
average $1.76 premium to petroleum diesel virtually flat
week to week.

Blending calculations took a big hit as trading on EPAs D4

Renewable Identification Number credits sagged lower the
last couple of weeks, though by presstime RINs started to
bounce off their lowest numbers.
D4 RIN credits for 2015 traded under 40cts/RIN late the
previous week and into last week, but by Thursday confirmed
deals bounced back up to $45.5cts/RIN. At that price, a
gallon of RIN-bearing biodiesel could bring with it as much
as 68.25cts in added credit value up more than 11cts on the
gallon from early in the week.

However, the bounce in D4 credit values could cut that

rack premium for B100 back to a little less than $1.08/gal on
average, and that is down 8.3% week to week.

National Renewable Fuel Feedstock/Co-Product Price Index

Feedstock/Co-product

Location/Source

Spot Price

Previous

4-Wk. Avg.

Palm Olein

US/Gulf Coast

$0.2971/lb

$0.2926

$0.2937

Soybean Oil - Crude Degummed

Central Illinois

$0.2593/lb

$0.2585

$0.2610

Soybean Oil - Crude Degummed

Central Illinois - USDA

$0.2604/lb

$0.2682

$0.2647

Soybean Oil - RBD*

Central Illinois - USDA

$0.2843/lb

$0.2825

$0.2864

Canola Oil

West Coast

$0.3568/lb

$0.3560

$0.3579

Canola Oil

Midwest

$0.3143/lb

$0.3135

$0.3129

Corn Oil - Crude

Midwest

$0.4300/lb

$0.4500

$0.4450

Corn Oil - Refined

Midwest

$0.5113/lb

$0.5300

$0.5253

Beef tallow

Chicago

$0.2800/lb

$0.2800

$0.2800

Choice White Grease

Chicago

$0.2600/lb

$0.2650

$0.2638

Poultry Fat (Low FFA)**

Southeastern US

$0.2050/lb

$0.2250

$0.2238

Yellow Grease

Illinois

$0.2000/lb

$0.2025

$0.2022

Methanol

US Gulf Coast

$0.8200/gal

$0.8050

$0.8250

Soy Meal (Hi-Pro)***

Illinois Truck

$341.00/ton

$335.00

$342.00

Corn

Central Illinois

$3.8700/bu

$3.6900

$3.7250

Soybeans

Central Illinois

$9.1700/bu

$9.0200

$9.1075

Crude Glycerin (80%)

FOB Midwest

$0.0525/lb

$0.0525

$0.0538

DDG-S (Distillers Dried Grains w/ Solubles)

Eastern Cornbelt - USDA

$137.5000/ton

$143.5000

$144.8125

Corn

Kansas City - USDA

$3.6125/bu

$3.6025

$3.5906

ULSD

OPIS National Average

$1.5121/gal

$1.5498

$1.5357

RBOB

OPIS National Average

$1.5175/gal

$1.154

$1.5797

Ethanol

OPIS National Average

$1.5378/gal

$1.4853

$1.4954

Unleaded RFG

OPIS National Average

$1.3663/gal

$1.3929

$1.4252

Natural Gasoline

Mt. Belvieu Non-TET

$0.9725/gal

$0.9638

$0.9422

Natural Gasoline

Conway In-well

$0.9925/gal

$0.9575

$0.9525

Ethanol RINs (Current Year)

OPIS National Average

$0.3200 /RIN

$0.3113

$0.3397

Ethanol RINs (Previous Year)

OPIS National Average

$0.3275/RIN

$0.3213

$0.3516

Cellulosic RINs (Current Year)

OPIS National Average

$0.6400/RIN

$0.6400

$0.6400

Cellulosic RINs (Previous Year)

OPIS National Average

$0.4900/RIN

$0.4900

$0.4900

Biodiesel RINs (Current Year)

OPIS National Average

$0.4500/RIN

$0.3875

$0.4606

Biodiesel RINs (Previous Year)

OPIS National Average

$0.4050/RIN

$0.3575

$0.4319

Advanced Biofuel RINs (Current Year)

OPIS National Average

$0.4350/RIN

$0.3800

$0.4431

Advanced Biofuel RINs (Previous Year)

OPIS National Average

$0.3950/RIN

$0.3350

$0.4094

CA LCFS Carbon Credit

California

$65.00/mt

$65.50

$66.0000

CA LCFS Carbon Intensity

California

$0.0053/CI

$0.0053

$0.0054

*refined, bleached, deodorized **free fatty acids ***high protein

Data provided, in part, by World Energy, www.worldenergy.net

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In DDGs...
The market for dried distiller grains did not change much,
with prompt demand said to be holding flat and prices mixed
on the margins. Concern over demand for exports did show
up on the radar screen late in the week, however.
In Iowa, FOB values for DDGs ran $120-$130/ton, and that
was flat to $12 lower from a week ago. Prices in Minnesota
ranged from $120 to $140 had the cheapest quotes, dropping
$5 on the week. Eastern Corn Belt DDGs prices from $125$150 remained flat.
Nebraska DDGs range widened rapidly last week, moving
from $10 lower to $4 higher week to week, expanding the
price range to $120-$149. In Kansas, DDGs talks at $135$160 remained steady from a week ago.
Delivered DDGs prices to the West Coast tended to run
firmer over the last week. California prices running $165-$180
picked up from $5-$7 against the week before, while Pacific
Northwest DDGs prices added $5, to $165-$170.
The outlook for exports might not be as healthy as they
have for most of the latter part of summer. A report making
the rounds late in the week had a China-based broker
anticipating 13% drop in Chinas imports of DDGs during the
current marketing.

In natural gasoline...
Mt. Belvieu spot natural gasoline prices climbed since late
August, but have seesawed so far in September, with arbs
seen as mostly closed at present. Canadian diluent prices
took a hit on Thursday, to potentially back up barrels that
might normally flow to Canada from the U.S.
Mt. Belvieu non-TET spot natural gasoline averaged
97.25cts/gal at midweek, with thin trading witnessed into
Thursday. Bid-ask level for physical C5 natural gasoline was
last seen at 93.25-97cts/gal. At the time, October natural
gasoline futures traded at 96cts/gal.

September 21, 2015 Volume 12, Issue 38

Pipeline (UMTP) project. The project would transport natural
gas liquids and condensate produced from the Utica and
Marcellus basins to delivery points along the Texas Gulf
Coast, including connectivity to a Kinder Morgan dock
located along the Houston Ship Channel.
The open season was originally scheduled to end Sept. 15.

In ultra-low-sulfur diesel...
After a three-week hiatus, total distillate production topped
5 million b/d in the latest weeks work of figures from EIA,
coming in last week at 5.076 million b/d. Refiners are starting
to see the better returns on diesel gallons in most cases, and
thus making more diesel based on current spot pricing.
While refiners tilt production toward diesel, inventories
of the fuel in the U.S. are already at a multiyear high. Total
distillate inventories hit 154 million bbl for the week, the
highest since October 2011. The ultra-low-sulfur diesel
segment had stocks swelling nearly 2.4 million bbl week to
week, and the overall stocks at 132.1 million bbl represent
20.7% more than storage tanks held at the same time last
year. Regionally, only the Rockies have ULSD stocks running
behind a year ago, and the East Coast is up nearly 40% while
the Gulf Coast carries 28.2% more year on year.
Distillate demand as measured by the Energy Information
Administration dropped 83,000 b/d, to 3.482 million b/d. The
four-week average continues to trail last year, and the most
recent measurement stands 2.8% below last year.
Spot market ULSD prices got shaky ahead of the weekend.
Gulf Coast ULSD traded $1.4157/gal outright Thursday and
fell 7.15cts behind week-ago trading. Chicago ULSD running
$1.5497/gal for the day slumped 4.25cts compared with
week-ago deals after slipping 42pts on the day.

In the news, Kinder Morgan Inc. said this week that it

will extend its current binding open season until Dec. 15 to
review shipper comments and interest, while continuing to
seek commitments for the proposed Utica Marcellus Texas

European Biodiesel Spot Markets

Rotterdam FAME ($/gal)

Rotterdam RME/Gasoil ($/gal)

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European, Brazilian and CBI Markets:
Rotterdam

RME

FAME

Ethanol T2

$2.93

$2.73

$2.53/2.22

Prices in U.S. $/gal., 9/17/15 Data provided, in part, by Starsupply Renewables,

www.starsupply.ch and SCB & Associates, www.starcb.com

European Markets
Operations at the first Etanolix technology outside
Finland is going well, said Patrick Pitknen, head of business
development and sales at St1 Biofuels, which developed the
technology.
The Etanolix unit has been installed at the North European
Bio Tech Oy (NEOT) plant in Gothenburg, Sweden, and
NEOT is the operator of the unit. The refinery is processing
biowaste and process residue from local bakeries and bread
into advanced ethanol.

September 21, 2015 Volume 12, Issue 38

ethanol produced at the Etanolix plant will be almost carbonneutral, Pitknen noted.
St. 1 Biofuels has installed four other Ethanolix units, but
the Gothenburg facility differs from the other installations in a
few respects, said Pitknen:
Size. It has a capacity four times those processing the
same feedstock in Finland.
Logistics. It has new enhanced feedstock receiving
system.
Integration. There is an integrated dehydration unit to
directly produce fuel-grade anhydrous ethanol. In Finland, the
dehydration unit is a stand-alone operation.
Other. There are also a number of small enhancements
based on our operation experience and product
development, Pitknen added.

Startup has gone like usually in this kind of plants there

are always some hiccups and surprises. Luckily, no major
show-stoppers, Pitknen told EBIS by email last week.

NEOT, the owner-operator of the Etanolix unit, delivers fuels

to about 1,500 branded service stations including ABC, St1
and Shell in Finland, Sweden and Norway.

When dealing with waste feedstock, there is always a

learning period where all parties in the network [need to] form
feedstock source separation and logistics systems, and us as
processor too have to adjust and adapt to the new system.
It just doesnt happen overnight, he continued. We all are
learning by doing. In general, our customers and partners
have welcomed us, and they have been very positive about
the new service we can offer in waste processing.

As a final update, Pitknen added that installation of the

companys first Cellunolix technology, designed to produce
ethanol from sawdust, is going well. Construction at a
refinery in Kajaani, Finland, has started, and commissioning
is expected in mid-2016.

The plant has an annual production capacity of 5

million liters (about 1.32 million gal). Pitknen said that full
production could be reached during the first few months of
2016, in accord with the original expectations.
The Gothenburg project is the first in which an ethanol
production plant has been integrated at an existing oil
refinery to produce waste- and residue-based ethanol on a
sustainable basis. It will yield savings in the use of residual
heat and synergies in product distribution. It is being
operated by refinery staff.

Market Update
Biodiesel prices were mixed last week, but palm-oil biodiesel
(PME) took an outsized loss. RME FOB ARA fell $2/metric ton
(mt) to a bid-ask range of $865-$885/mt at the Sept. 17 close.
SME FOB ARA added $11/mt to a bid-ask range of $828$848/mt. PME dropped sharply, losing $59/mt to $748-$768/
mt. FAME 0 FOB ARA was off $9/mt to $808-828/mt.
Rotterdam gasoil fell by $18/mt, to $468/mt on the week
ended Sept. 17.
Prices are supplied by SCB Renewables.
Kevin Adler, kadler@opisnet.com

Thanks to its feedstocks and production technology, the

Brazil and CBI Ethanol Spot

Anhydrous Ethanol FOB Santos vs. NYH, Tampa Spot ($/gal)

Anhydrous vs. Hydrous FOB Santos ($/gal)

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Brazil and CBI Markets
Anhydrous Ethanol $1.51417-$1.62773 Hydrous Ethanol $1.36275-$1.43846
(FOB Santos, 9/17/15, prices in U.S. $/gal.)

A hike in the so-called CIDE tax on gasoline in Brazil

which could boost sales of hydrous ethanol by making
it more price-competitive at one point was deemed
potentially crucial to helping President Dilma Rousseff save
her mandate.
However, the gasoline tax hike was not part of a fiscal
package unveiled by the Brazilian government on Sept. 14.
In a recent front-page editorial, the Folha de S. Paulo
newspaper said Rousseff needed to take drastic step
including additional spending cuts and tax hikes to address
a 2016 budget gap that has cost Brazil its investment-grade
rating from Standard & Poors.

September 21, 2015 Volume 12, Issue 38

in Brazil by motorists with flex-fuel vehicles hit a record
level in July.
Consumption of hydrous ethanol reached 1.55 billion liters
in July, according to figures from Brazils National Oil, Gas
and Biofuels Agency (ANP). Thats the highest monthly figure
recorded since 2000, which is when fuel distributors and the
ANP began sharing such data.
The previous monthly record was set in December 2009
when 1.51 billion liters of hydrous ethanol were sold.
Hydrous ethanols share of the fuel market (hydrous ethanol
versus gasoline) also reached its highest monthly level so far
in 2015, hitting 24.1% in July.
Brad Addington, baddington@opisnet.com

News of the Week:

Some newspapers in Brazil ran headlines warning

consumers to brace for higher gasoline prices because a
higher tax on gasoline was considered highly probable.

Bill to extend alt fuels regulation in California

passes Legislature

Rousseff at one point had ordered her ministers to find

an additional 15 billion reals ($3.9 billion) in savings. The
fiscal package announced Sept. 14 is expected to have a
R$26 billion impact, largely through spending cuts.

Earlier this month, both houses of Californias legislature

passed AB 808, and the bill has moved to Gov. Jerry Brown
(D) for his signature.

Brazils ethanol producers welcomed the return of the CIDE

tax on gasoline on Feb. 1 of this year. At that time, the CIDE
tax on gasoline went from zero to R$0.10/liter, and the PIS/
Cofins tax on gasoline rose from R$0.26 to R$0.38/liter, for a
total increase of R$0.22/liter.
More recently, Brazils ethanol industry had proposed
raising the CIDE tax on gasoline to R$0.60/liter to address
the governments budget shortfall. It was estimated that
the measure would bring in an additional R$14.9 billion
R$10.6 billion for the federal government and R$4.3 billion
for states and municipalities.
Participants in Brazils ethanol industry cite two likely
reasons that the CIDE tax hike was not part of the fiscal
package announced Sept. 14.
According to some projections, with a CIDE gasoline tax of
R$0.60/liter, consumption of gasoline C (gasoline blended
with 27% anhydrous ethanol) would drop to 38.8 billion liters
in 2016 from 42.2 billion liters expected for 2015.
Dont mess with Petrobras, one industry participant said,
referring to Brazils state-controlled oil company.
Another likely consideration was the impact on inflation. It
was projected that raising the CIDE gasoline tax to R$0.60/
liter would cause inflation to rise by nearly 0.9%.
Regardless, the boost in the CIDE tax on gasoline in
February has been cited repeatedly by ethanol producers
this year as helping to make hydrous ethanol more price
competitive with gasoline at the pump.
The Brazilian Sugarcane Industry Association (UNICA)
reported last month that consumption of hydrous ethanol

AB 808 will extend to the states Department of Food and

Agriculture (DFA) the same authority over alternative fuels
that it has over fossil fuels.
Ethanol and biodiesel are specifically cited in the text of the
bill as included under the proposed authority.
The bill makes alternative fuels subject to the same, or
similar, rules set by DFA for retail business practices related
to labeling, hours of business, advertising and so on. Without
the authority specifically identified in the legislation, the DFA
is restricted from establishing fuel quality specifications
that would protect consumers from substandard products
and regulate advertising for these new alternative fuels, a
legislative analysis states.

Calif. governor signs rail freight safety bill into law

Legislation calling for adequate crew size for trains
and light engines carrying freight throughout the state of
California has been signed into law by Gov. Jerry Brown (D).
Senate Bill 730, sponsored by Sen. Lois Wolk (D-Davis),
prohibits the operation of a freight train or light engine
within the state unless its crew size consists of at least two
individuals.
Todays freight trains carry extremely dangerous materials,
including Bakken crude oil, ethanol, anhydrous ammonia,
liquefied petroleum gas, and acids that may pose significant
health and safety risks to communities and our environment
in the case of an accident, said Wolk. With more than 5,000
miles of railroad track that crisscrosses the state through
wilderness and urban areas, the potential for derailment
or other accidents containing these materials is an ever
present danger. This new law will provide greater protection

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Ethanol & Biodiesel Information Service

September 21, 2015 Volume 12, Issue 38

to communities located along rail lines in California, and to

railroad workers.

million-euro ($3.95 million) project to research, analyze and

test the potential of DME and oligomethyl ether (OME) fuel in
passenger cars and heavy-duty truck engines, and ultimately
build the worlds first production passenger car powered by
DME for on-road testing.

In addition, the law will give authorization to the California

Public Utilities Commission to assess any civil penalties
against anyone who willfully violates the law.

Queensland, Australia, considers biofuels mandate

for 2016
Legislators in the Australian state of Queensland are
considering a bill that would mandate blending of ethanol
and biodiesel into the states fuels. The bill would require,
beginning on July 1, 2016, a 2.0% overall ethanol blend (in
regular-grade gasoline) and a 0.5% biodiesel blend.
In Queensland, the biofuels industry, and particularly
ethanol, has struggled to advance due to a lack of longterm policy certainty. There have been a number of false
starts to an ethanol mandate, including a proposal for a
legislated mandate to start at the end of 2010, said member
Mark Craig Bailey, in introducing the bill in Parliament. A
legislated mandate for 2% biobased petrol such as ethanol
will, therefore, provide the policy certainty that the industry
can take as a solid commitment from government to back the
growth of a vibrant biofuels and bio-manufacturing industry
in Queensland.
Bailey said that use of ethanol in Queensland peaked in
2010-2011 at about 900 million liters per year (about 238
million gal), but fell to 350 million liters (about 92 million gal) in
2014. At its current level, it has a market share of about 1.2%.

E15 available to Iowans after

summer ozone season ends
With the summer ozone season coming to an end recently,
37 retail locations throughout Iowa have begun offering E15
fuel to 2001 and newer vehicles again.
The period under which E15 cannot be sold to non-flexible
fuel vehicles in some parts of the country is from June
1-Sept. 15. The restriction is in place because E15 blends
do not receive the same 1-psi Reid Vapor Pressure (RVP)
volatility waiver that is granted to E10.

Oberon Fuels, Ford working on car to be powered

by dimethyl ether
Oberon Fuels, which says it was the first company to
produce fuel-grade dimethyl ether (DME) in North America,
is partnering with other companies in an attempt to construct
the inaugural production passenger car powered by DME for
on-road testing, it said recently.
Oberon will team with Ford Motor Co.,
Forschungsvereinigung Verbrennungskraftmaschinen e. V.
(FVV) and other FVV member companies on a three-year, 3.5

The project will investigate the use of DME and OME as

diesel replacements in passenger cars and heavy-duty
vehicle engines, respectively, and will result in the first
original equipment manufacturer-produced DME passenger
car in the world, according to Oberon.

Oregon issues updated proposal

for Clean Fuels Program rules
The Oregon Department of Environmental Quality (Oregon
DEQ) has issued a series of proposed amendments to the
states Clean Fuels Program rules and said it would take public
comments on the proposed changes until 4 p.m. on Oct. 21.
Also, it will hold a public hearing on the proposal on Oct. 19
at Oregon DEQ headquarters in Portland.
Most of the proposed changes were spelled out in SB 324,
passed earlier this year, which removed the sunset provision of
the original Clean Fuels Program bill, HB 2186. Under SB 324,
the state is committed to reducing the carbon intensity (CI) of
transport fuels by a certain percentage each year, cumulatively
reducing CI by 10% by 2025 over a 10-year period.
The proposed changes include both definitional
adjustments and incorporation of updated emissions models
and new procedures.

Rail safety committee to meet in D.C. on Oct. 1

The Rail Energy Transportation Advisory Committee
(RETAC) will hold its semi-annual public meeting on Oct. 1 in
Washington, D.C.
Established by the Surface Transportation Board (STB)
of the Department of Transportation in 2007, RETAC serves
as a forum for government, industry and others to discuss
emerging issues in the transportation by rail of biofuels,
conventional hydrocarbons and coal. Its 25 voting members
span across large and small railroads, coal producers,
electric utilities, the biofuels industry, the petroleum industry
and the private railcar industry.
The meeting is open to the public. Comments can be
submitted to RETAC in advance of the meeting c/o Michael
Higgins, STB, Michael.Higgins@stb.dot.gov.

USDAs Vilsack to biofuels industry:

Were still committed to growth
Washington, D.C. USDA is committed to the U.S.
biofuels industry and we will continue to focus on things
we can control at the agency to grow the industry, USDA

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Secretary Tom Vilsack told attendees at Growth Energys
sixth annual Advocacy Conference.
Among USDA programs to help the biofuels industry
are blender pump funding, the Biofuels Infrastructure
Partnership, the Biomass Crop Assistance Program and
the Commodity Credit Corporation, Vilsack outlined. Were
going to continue to look for ways to expand because its the
right thing to do for the country, he said.
USDA recently announced that 21 states have been
awarded a collective $100 million in funding to help install
blender pumps. Its estimated that the grants will support the
installation of nearly 5,000 fueling pumps.
I was extraordinarily pleased with the reaction to the
blender pump solicitation, Vilsack said, noting that the largest
amount of interest came from Texas, with 763 pumps. That
is good news for the industry. ... I am looking forward to
nearly 5,000 additional pumps in place, doubling access to
higher blends and setting the stage for continued ways to
expand access to higher blends, he added.

European Commission extends

U.S. biodiesel penalties for 5 years
The European Commission has made it official: It extended
both the anti- dumping and anti-subsidy duties on U.S.
biodiesel imports for an additional period of five years.
With the publication of EU Regulations 2015/1518 and
2015/1519 in the EU Official Journal, the Commission
affirmed the claims of Europes biodiesel industry that they
would be harmed if the duties were lifted.
The European Biodiesel Board (EBB) said it welcomes
todays publication of a five-year extension of the so-called
B99 measures.... EU biodiesel producers have committed
significant efforts to build a world-class leading production
capacity. Over the past years, however, they have been
unable to fully reap the benefits of their work due to the
devastating effects of successive waves of unfair U.S.
competition.
In the U.S., the National Biodiesel Board (NBB) denounced
the decision as protectionist and said that U.S. producers
face an unfair, uneven playing field.
To read the EUs decisions, go to:
http://www.ebb-eu.org/EBBpressreleases/B99_AD_
Extension_Reg_2015_1518_15sep2015_aj.pdf
http://www.ebb-eu.org/EBBpressreleases/B99_CV_
Extension_Reg_2015_1519_15sep2015_aj.pdf.

Taiwanese delegation to purchase

U.S. corn, co-products
A Taiwanese delegation in Washington, D.C., signed a letter
of intent with the U.S. Grains Council (USGC) committing

September 21, 2015 Volume 12, Issue 38

to purchase 5 million metric tons (197 million bu) of U.S.
corn and 500,000 tons of U.S. corn co- products, including
distillers dried grains with solubles (DDGS), valued at $1.23
billion by 2017, USGC said recently.
The letter is evidence of Taiwans commitment to
strengthening trade ties and maintaining the well-established
partnership between the United States and Taiwan, USGC
said.
For the 2014/2015 marketing year, Taiwan was the sixthlargest market for U.S. corn, third-largest market for U.S.
barley and a top buyer of U.S. DDGS, according to USGC.

CARB board to vote on LCFS

The Board of the California Air Resources Board (CARB)
will consider a slate of biofuels-related issues at its next
meeting on Sept. 24-25 in Sacramento, highlighted by a
planned vote on the readoption of the Low Carbon Fuel
Standard (LCFS).
The meeting will begin with a review of the proposed
Alternative Diesel Fuel (ADF) regulation specifically an
updated environmental impact analysis of ADF. With that
review will come a look at how ADF integrates with and
supports the goals of the LCFS. On the 25th, the Board will
vote on the readoption of the LCFS.
An agenda for the meeting and links to materials about
the various programs that will be discussed can be found
at:http://www.arb.ca.gov/board/ma/2015/ma092415.pdf.

BIO: Oil industry could lose trillions if EPA sets RFS

below statutory targets
A NERA Economic Consulting study was issued recently
by the American Petroleum Institute (API), which found that
if left unchanged, the statutory volumes of the Renewable
Fuel Standard (RFS2) will result in outrageously high
consumer costs. However, a recasting of that same data by
the Biotechnology Industry Organization (BIO) finds the oil
industry would lose more than $12.3 trillion in potential profits
this year if EPA sets the RFS targets below statutory levels,
BIO has announced.
Among the findings from BIOs analysis:
E10 could be sold at $93.64 per gallon this year. E10
contains 10 percent ethanol, which costs $1.07 per gallon,
and 90% BOB (Blendstock) at $1.40 per gallon. The final cost
of each E10 gallon is therefore under $1.37. Thats a potential
profit margin of more than $92 per gallon!
The U.S. Energy Information Administration projects
that nearly 138 billion gallons of gasoline will be sold at an
average price of $2.31 and 58 billion gallons of diesel will
be sold at an average of $2.70 in 2015. NERA Economic
Consulting forecasts the oil companies would reduce
gasoline production to 93 billion gallons sold at $93.64 per

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Ethanol & Biodiesel Information Service

gallon and reduce diesel production to 40 billion gallons sold
at $103 per gallon. The potential profits, including the lower
cost of production, exceed $12.3 trillion.
E0 can only be sold at $23.49 per gallon, while the cost of
the gasoline blendstock would likely be higher than the $1.40
for BOB. By insisting that E0 maintain 2.5% of the gasoline
market when E10 is far more profitable, the oil companies
would expect to forgo more than $427 billion in potential
profits; and

EPA extending comment period on ICR

for E15 recordkeeping rules
EPA is providing an additional 30-day comment period
on an information collection request (ICR) related to
recordkeeping of E15, according to a Federal Register notice.
In 2012, EPA gave final approval to E15 for 2001 and latermodel-year vehicles.
The agency also issued a final rule establishing several
measures to mitigate misfueling, requiring all E15 dispensers
to have a specific label, while the rule also requires a survey
of retail stations to ensure compliance with the requirements,
among other issues.
EPA previously sought public comments on this issue on
March 24, kicking off a 60-day deadline. This notice allows
for an additional 30 days for public comments, the Federal
Register notice added.
The new comment deadline is now Oct. 13.

September 21, 2015 Volume 12, Issue 38

biodiesel and its byproducts from an existing Italian biodiesel
plant currently operated by Fox Petrolifera. Both companies
are active in the production of biodiesel, as well as crude and
refined glycerin. However, the details of the plant, such as
the production capacity and its start date, were not disclosed.
Also, the joint ventures parent companies sell palm
and seed oil, which are both used in the production of
biodiesel. The commission concluded that the proposed
acquisition would raise no competition concerns, because the
companies combined market position would remain highly
limited on all markets involved and they would continue to
face significant competitive pressure from various strong,
multinational competitors. The transaction was examined
under the simplified merger review procedure, the EC added.

Chinese Ethanol output forecast to rise 2.6%

next year: report
Chinese fuel ethanol production is forecast at 3.15 billion
liters (2.49 million metric tons) in 2016, up 2.6% from this
year, according to a recent report by the U.S. Agriculture
Department, while biodiesel output remains flat.
The rise in ethanol production is anticipated to occur in
response to increased fuel consumption in provinces with
blend mandates, according to USDA.
Ethanol imports in 2016 are forecast to reach 90 million
liters. Ethanol imports this year are forecast at 70 million liters,
up from only 14 million liters in 2014.
The prospect for further import growth remains uncertain
given tight government controls over the sale of ethanol for
fuel use, USDA said.

European Commission approves

new biodiesel joint venture
The European Commission (EC) has approved a new Dutch
joint venture company between Wilmar International and Fox
Petrolifera Italiana SpA of Italy that will produce biodiesel.
As the EC explained, [t]he joint venture will produce

The government began to withdraw policy support for grainbased ethanol in 2010 after increasing domestic grain prices
triggered alarm within the government, according to the report.
All subsidies for grain-based ethanol have now been removed,
it said, and production volumes are tightly controlled.

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