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Governors' Biofuels Coalition
NEWS UPDATE October 14, 2020

Top Story

McConnell plans vote on narrow economic relief measure while Trump urges lawmakers to ‘Go big or go home!!!’

By Jeff Stein and Erica Werner, Washington Post  •    •  Posted October 14, 2020

Senate Majority Leader Mitch McConnell (R-Ky.) announced on Tuesday that the Senate will take up a narrow economic relief bill when it comes back in session next week. President Trump immediately undermined the move, writing on Twitter: “STIMULUS! Go big or go home!!!” The clashing messages were a stark display of GOP disunity just three weeks before the November election, as Senate Republicans balk at a $1.8 trillion relief package Treasury Secretary Steven Mnuchin has offered to House Speaker Nancy Pelosi (D-Calif.). Trump, though, has suggested Republicans should agree to an even bigger deal than what Democrats have offered. [ read more … ]

Trump, Republicans Divided on Stimulus as Pelosi Demands Revamp

By Billy House, Bloomberg  •    •  Posted October 13, 2020

Prospects for U.S. fiscal stimulus before Election Day dimmed on Tuesday, with House Speaker Nancy Pelosi demanding the White House revamp its latest offer and Senate Republican leader Mitch McConnell pushing a smaller-scale strategy that Pelosi quickly rejected. McConnell’s proposal to vote next week on just one provision — replenishing funds in the Paycheck Protection Program for small businesses — appeared to stoke opposition even from President Donald Trump, who tweeted “Go big or go home!!” [ read more … ]

Markets

Green Plains Inc. Exits Cattle Business

By Todd Neeley, DTN Staff Reporter  •    •  Posted October 14, 2020

The Omaha-based company announced Tuesday the sale of its remaining 50% joint venture in Green Plains Cattle Company LLC to a group of investment funds including AGR Partners and StepStone Group, generating about $80 million in cash. The sale was the latest major move by Green Plains in the past few years, as the company also has been divesting some from the ethanol business as well. “With the sale of our remaining ownership in Green Plains Cattle Company, combined with our recent quarterly distribution and earnings bonus from performance of the cattle business, we have added approximately $96 million of liquidity to our balance sheet,” Green Plains President and Chief Executive Officer Todd Becker said in a news release.
[ read more … ]

Global fuel standards are pushing the dirtiest oil out of the market

By Michael J. Coren, Quartz  •    •  Posted October 13, 2020

That variation in carbon intensity promises to shake up the global oil market, writes energy economist Philip Verleger in a report to investors. Governments concerned about climate change generally aren’t banning fossil fuels outright; they’re creating low carbon performance standards, which allow for taxing of fuels based on their carbon content. A steadily rising price for carbon means the dirtiest fuels—from places as disparate as Canada, Venezuela, and Alaska—will eventually be pushed out of those systems. [ read more … ]

The U.S. ethanol sector continued to recover during the quarter to a new baseline level equating to 85%-90% of pre-COVID demand.

By CoBank  •    •  Posted October 13, 2020

Based on EIA data on an annualized basis, weekly production averaged 14.2 billion gallons for the third quarter, 89% of the first quarter’s average production of 15.9 billion gallons. For a representative Iowa dry milling fuel ethanol plant, industry operating margins (defined as return on operating costs but before capital costs) also improved, averaging $0.21 per gallon, up from break-even during the first quarter. The improvement occurred as supply and demand became more balanced, and active producers benefited from better productivity. [ read more … ]

IEA Projection

Energy in the next 10 years

BY KELSEY TAMBORRINO, Politico  •    •  Posted October 13, 2020

“The era of global oil demand growth will come to an end in the next decade,” IEA Executive Director Fatih Birol said in a statement. “But without a large shift in government policies, there is no sign of a rapid decline. Based on today’s policy settings, a global economic rebound would soon push oil demand back to pre-crisis levels.” Under all four scenarios in the report , renewable energy continues to gain market share. In the announced policy intentions scenario, renewables meet 80 percent of global electricity demand growth over the next decade, overtaking coal by 2025 as the primary means of producing electricity. Hydropower will remain the largest renewable source over that period, but solar is the main source of growth. “I see solar becoming the new king of the world’s electricity markets,” Birol added. Solar is on track to set new records for deployment every year after 2022 under current policy. [ read more … ]

IEA: Energy demand may not recover until 2025

By Mike Lee and Carlos Anchondo, E&E News reporters  •    •  Posted October 13, 2020

The coronavirus has scrambled the global energy industry, lowering emissions temporarily while still not putting the world on a long-term path to reduce climate-changing pollution, according to the International Energy Agency. This year’s edition of the Paris-based agency’s World Energy Outlook paints an especially shaky portrait of the sector’s future. [ read more … ]

Pandemic

Coronavirus Pandemic Speeds Shift to Cleaner Energy

By Russell Gold and David Hodari, Wall Street Journal  •    •  Posted October 13, 2020

The world’s transition to cleaner sources of energy is gaining speed as the coronavirus pandemic accelerates a shift in investment away from fossil fuels, according to the International Energy Agency. Capital spending on energy this year is set to plunge by 18%, as global energy demand is expected to fall by 5% in 2020, a pullback not seen since World War II, the Paris-based agency said in its annual report on the future of the industry. [ read more … ]

Campaign 2020

Tight race between Joni Ernst and Theresa Greenfield in Iowa could determine balance of power in the Senate

By Lauren Feiner, CNBC  •    •  Posted October 13, 2020

Ernst, the first woman from Iowa to hold federal elected office, now faces Democratic challenger Theresa Greenfield, a real estate executive who has not previously held political office. Greenfield ran for Congress in 2018, but her bid ended after her ex-campaign manager admitted to forging signatures without her knowledge to get her on the primary ballot. Greenfield submitted a new petition to add her name at the last minute but failed to come up with enough signatures. [ read more … ]

 

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.