IARN — Biofuel producers, who fell victim to coronavirus, greatly scaled back their output. Geoff Cooper, Chief Executive Officer of the Renewable Fuels Association, offers production comparisons, further highlighting coronavirus’ impact.
“The ethanol industry was producing at an annualized rate of 16.5 billion gallons during the last week of February. Demand began to collapse in mid-March, ethanol stocks built to record levels, and storage began to fill up. We saw operating margins plunge deep into the red. By late April, the ethanol industry was producing at an annualized rate of 8.2 billion gallons. In six to seven weeks, we saw production drop by more than 50-percent.”
Cooper, however, says, “The worst may be behind us.”
“We’re beginning to see signs of recovery as states begin to ease stay-at-home restrictions, and people return to public places and get back out on the roads,” Cooper said. “Gasoline demand is beginning to show some signs of life.”
Cooper notes, “Ethanol plants coming back online, as well as incremental increases in production.” He adds, however, the industry has “a long way to go.”
“But make no mistake, we still have a long way to go, to climb out of the hole COVID-19 put us in,” Cooper said. “By our last count, there were still more than 60 ethanol plants fully idled today and closed to 75 to 80 facilities operating at greatly reduced output rates.”
Additionally, the Renewable Fuel Reimbursement Program looks to provide “vital assistance and emergency relief” to ethanol producers nationwide.
Story courtesy of the Iowa Agribusiness Radio Network.
