3bn gallons of fuel ethanol idled, some plants switch to industrial production – RFA
Alex Snodgrass
26-Mar-2020
HOUSTON (ICIS)– The Renewable Fuels Association (RFA) predicts that 3bn gal of ethanol capacity has been idled or will idle in the next several days as the coronavirus (Covid-19) continues to dampen gasoline and fuel ethanol demand.
“We believe between 30-40 plants are fully idle and another 40-50 have reduced output,” said Geoff Cooper, CEO and president of RFA.
US fuel ethanol producer and refiner Valero is closing two of its ethanol plants and declaring force majeure on shipments of dried distillers grains or corn purchases, according to sources.
The force majeure is due to lack of storage availability for corn or ethanol as gasoline demand wanes and storage remains limited due to excess supply.
While some plants cut production, others have the ability to shift to industrial ethanol as the need for sanitzers increases.
Making industrial alcohol from ethanol requires a further step in distillation, so not all fuel ethanol plants are able to accomplish this.
It also requires permits from the US Food and Drug Administration and the federal Alcohol and Tobacco Tax and Trade Bureau.
Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.
READ MORE
![](https://cjp-rbi-icis.s3.eu-west-1.amazonaws.com/wp-content/uploads/sites/7/2024/01/16170556/ContactUs_Services.jpg)