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Released October 27, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Things are looking up for the U.S. ethanol sector. Production recently hit its highest level since pandemic-driven lockdowns all but froze the industry last year, while spot ethanol prices nearly reached a seven-year high alongside surging crude oil prices. On top of that, strong corn harvests are providing plenty of cheap feedstock. Ethanol producers are focusing on keeping their existing facilities in ship-shape as they consider expansions. Industrial Info is tracking about 160 active maintenance-related projects in the U.S. ethanol-production sector that are slated to kick off by the end of second-quarter 2022, the bulk of which are found in the Midwest region.
Click on the image at right for a graph detailing the top 10 parent companies for maintenance-related U.S. ethanol-production projects, set to begin through June 2022.
POET LLC (Sioux Falls, South Dakota) accounts for 30 maintenance-related projects for ethanol production over the next nine months--the most of any single plant owner. This includes programs for regular inspections and repairs at three major plants in Iowa: the 65 million-gallon-per-year plant in Corning; the 56 million-gallon-per-year plant in Ashton; and the 54 million-gallon-per-year plant in Coon Rapids. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can read detailed reports on the Corning, Ashton and Coon Rapids projects.
POET likely will add more annual maintenance-related programs to its project slate in the years to come: The company announced earlier this year that it was purchasing six ethanol-production facilities from Flint Hills Resources LLC (Wichita, Kansas), including five in Iowa and one in Nebraska. The six plants have a combined capacity of 800 million gallons per year. POET also purchased two terminals in Texas and Georgia from Flint Hills, as well as its NexPro animal feed ingredients business.
Green Plains Incorporated (NASDAQ:GPRE) (Omaha, Nebraska), one of the three largest ethanol producers in North America, accounts for 10 ethanol maintenance projects set to kick off through June 2022. This includes six-month programs for regular inspections and repairs at its two major facilities in Nebraska: the 120 million-gallon-per-year plant in Wood River and the 116 million-gallon-per-year plant in Central City. Subscribers can read detailed reports on the Wood River and Central City projects.
The Nebraska plants are central to Green Plains' ambitions to transition from commodities to biorefinery-ingredient development. Todd Becker, the chief executive officer of Green Plains, said earlier this year that "we are systemically executing on our strategic plan to become a world-class ag-tech company, providing high-protein, novel feed ingredients with a unique yeast component." In a recent quarterly earnings-related conference call, Becker said the company is focused on five verticals: ultra-high protein, renewable corn oil, specialty alcohols, clean sugar and carbon.
Valero Renewable Fuels Company LLC, a subsidiary of Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), accounts for only eight maintenance projects through the end of second-quarter 2022, but is spending more on each project, on average, than any other company. Three of these projects are in Iowa, which few industry watchers would be surprised to learn leads all other U.S. states in such projects over the coming nine months: the 130 million-gallon-per-year plant in Albert City; the 120 million-gallon-per-year plant in Fort Dodge; and the 110 million-gallon-per-year plant in Charles City. Subscribers can read detailed reports on the Albert City, Fort Dodge and Charles City projects.
Martin Parrish, Valero's vice president for Alternative Energy and Project Development, said in a recent quarterly earnings-related conference call that "ethanol is definitely in the fuel mix to stay in the United States." He said Valero is seeing "pretty good export demand" for ethanol that is "picking back up, post the big impacts of COVID. So, we're pretty optimistic about the future there. But what's really driving our optimism is the low carbon. We're deep into corn fiber ethanol at this point, producing that at several sites and the outlook for the carbon sequestration [is strong]."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing the top 10 parent companies for maintenance-related U.S. ethanol-production projects, set to begin through June 2022.POET LLC (Sioux Falls, South Dakota) accounts for 30 maintenance-related projects for ethanol production over the next nine months--the most of any single plant owner. This includes programs for regular inspections and repairs at three major plants in Iowa: the 65 million-gallon-per-year plant in Corning; the 56 million-gallon-per-year plant in Ashton; and the 54 million-gallon-per-year plant in Coon Rapids. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can read detailed reports on the Corning, Ashton and Coon Rapids projects.
POET likely will add more annual maintenance-related programs to its project slate in the years to come: The company announced earlier this year that it was purchasing six ethanol-production facilities from Flint Hills Resources LLC (Wichita, Kansas), including five in Iowa and one in Nebraska. The six plants have a combined capacity of 800 million gallons per year. POET also purchased two terminals in Texas and Georgia from Flint Hills, as well as its NexPro animal feed ingredients business.
Green Plains Incorporated (NASDAQ:GPRE) (Omaha, Nebraska), one of the three largest ethanol producers in North America, accounts for 10 ethanol maintenance projects set to kick off through June 2022. This includes six-month programs for regular inspections and repairs at its two major facilities in Nebraska: the 120 million-gallon-per-year plant in Wood River and the 116 million-gallon-per-year plant in Central City. Subscribers can read detailed reports on the Wood River and Central City projects.
The Nebraska plants are central to Green Plains' ambitions to transition from commodities to biorefinery-ingredient development. Todd Becker, the chief executive officer of Green Plains, said earlier this year that "we are systemically executing on our strategic plan to become a world-class ag-tech company, providing high-protein, novel feed ingredients with a unique yeast component." In a recent quarterly earnings-related conference call, Becker said the company is focused on five verticals: ultra-high protein, renewable corn oil, specialty alcohols, clean sugar and carbon.
Valero Renewable Fuels Company LLC, a subsidiary of Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), accounts for only eight maintenance projects through the end of second-quarter 2022, but is spending more on each project, on average, than any other company. Three of these projects are in Iowa, which few industry watchers would be surprised to learn leads all other U.S. states in such projects over the coming nine months: the 130 million-gallon-per-year plant in Albert City; the 120 million-gallon-per-year plant in Fort Dodge; and the 110 million-gallon-per-year plant in Charles City. Subscribers can read detailed reports on the Albert City, Fort Dodge and Charles City projects.
Martin Parrish, Valero's vice president for Alternative Energy and Project Development, said in a recent quarterly earnings-related conference call that "ethanol is definitely in the fuel mix to stay in the United States." He said Valero is seeing "pretty good export demand" for ethanol that is "picking back up, post the big impacts of COVID. So, we're pretty optimistic about the future there. But what's really driving our optimism is the low carbon. We're deep into corn fiber ethanol at this point, producing that at several sites and the outlook for the carbon sequestration [is strong]."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
