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Energy Department Helping Lower Biofuel Costs For The Nation

U.S. gasoline prices are currently at their lowest point since 2009, saving you money at the pump. The Energy Department’s Bioenergy Technologies Office (BETO) is looking beyond current gas prices and working to lower the cost of biofuels such as cellulosic ethanol—which can be blended with gasoline—and “drop-in” hydrocarbon fuels—which can directly replace gasoline. These fuels have a lower net greenhouse gas impact and can be produced right here in the United States—driving growth in local economies and increasing our energy security by reducing dependence on foreign oil. These biofuels are part of an all of the above strategy to provide U.S. drivers with energy options for their vehicles. BETO’s research and development work focuses on the following fuels:



1. Cellulosic Ethanol from Corn Stover: This fuel uses non-food parts of corn plants (stalks, cobs, husks, residues) that may otherwise go to waste. Cellulosic ethanol from corn stover can reduce greenhouse gas (GHG) emissions compared to its gasoline equivalent by as much as 103% (life-cycle GHG emissions, taking into account all stages of fuel production and end use). Two cellulosic ethanol biorefineries that use corn stover as a feedstock opened this year with help from BETO funding: POET-DSM’s Project LIBERTY in Emmetsburg, Iowa, and Abengoa’s Bioenergy Biomass of Kansas in Hugoton. In 2012, BETO research and development demonstrated a cellulosic ethanol production cost of $2.15 per gallon, down from $9 per gallon a decade earlier. A gasoline/cellulosic ethanol blend can be an alternative to the gasoline/corn grain ethanol blend that is widely available today.

2. Biofuels from Grasses, Woody Crops, Forest Residue: There are many different types of plant material that can be used to create biofuel, including forest residue, and energy crops such as grasses and trees. Biofuel produced using switchgrass can reduce GHG emissions by up to 97% and miscanthus (another type of grass) as high as 115%. These non-food crops can be used to produce cellulosic ethanol, or, in the future, drop-in hydrocarbon fuels. BETO is on track to continue to drive down the cost of hydrocarbon fuels and make them available to the public after hitting its research and development cost target last year of a fuel selling price of $5.26 gallons per gasoline equivalent. Last year, American Process Inc.’s Alpena Biorefinery in Michigan sold its first shipments of cellulosic ethanol produced from forest residue with help from BETO funding.

3. Biofuels from Algae: Another option is producing biofuel from algae in the form of ethanol or drop-in fuel. Algal biofuel can reduce GHG emissions by more than 60% compared to petroleum gasoline. One challenge is for the algae to produce oil to create biofuel at a large-enough scale and cheaply enough without using a lot of water and other inputs. In 2014, BETO-funded projects made advances toward making algae-based fuel a more feasible option for consumers. These included a close-out report from the National Alliance of Advanced Biofuels and Bioproducts that highlights cost-reducing recommendations from three years of BETO-funded research.

In the future, every state in the country could produce its own biofuel using crops geographically suited to that region. BETO works with industry to manage integrated biorefineries across the country that demonstrate and test different biofuel conversion processes using a variety of biomass feedstocks. The goal of this work is to drive down the costs of these biofuels so that they can be viable options at the gasoline pump—benefitting energy security, the environment, and the U.S. economy.

Source:energy.gov


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Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.