Ethanol industry bouncing back in 2021
Ethanol producers are bouncing back from arguably the roughest stretch in the history of the industry.
Speaking to Brownfield at the American Coalition for Ethanol Conference in Minneapolis, ACE CEO Brian Jennings says most ethanol plant operators would say 2021 has been better than anticipated.
“Given where blending economics are for ethanol, and given where RIN values are for ethanol, really driving interest in that. And thankfully people are getting back out on the road and driving (so) demand is up. I think producers would tell you they’re doing better in 2021 than they expected to.”
But he tells Brownfield producers are still digging out from a couple of painful years.
“2019 was a very difficult year for them, and we were hopeful 2020 would be so much better. And then of course we were slammed, as everyone was, with the pandemic that drove ethanol prices to their lowest levels ever (and) drove ethanol demand to its lowest level ever because people weren’t driving.”
Jennings says overall oil demand has helped spur the corn oil market, generating additional revenue for ethanol plants.