Category: News

The U.S. ethanol industry saw its long-term outlook dampen further after the federal government’s surprise pullback in support for the plant-based fuel.

Already the industry is under pressure from rising corn costs and weak gasoline demand.  

The Environmental Protection Agency blending mandates issued Wednesday limit the amount of conventional ethanol that can be used to fulfill quotas in 2024 and 2025 to 15 billion gallons, a cut from the target of 15.25 billion gallons proposed earlier. With rising input costs already threatening to squeeze margins that had just started to improve, the trimmed quotas are a concerning development for ethanol producers fighting for a bigger share of American gas tanks.

Renewable Fuels Association Chief Executive Officer Geoff Cooper, has described the government’s decision as “inexplicable and unwarranted,”

The latest blending requirements come at a time when gasoline usage is still lagging pre-pandemic levels. Demand is about 3% below the same period in 2019, according to recent government data, and a growing market for electric vehicles only threatens to make things worse. It’s not just ethanol that’s reeling: Critics say the latest biofuel-blending requirements also hinder the Biden administration’s own clean energy and climate goals.

“Higher blending targets would enable fuels such as E15 and E85 to quickly displace carbon pollution from gasoline, but EPA’s proposal will rein in those opportunities,” said American Coalition for Ethanol CEO Brian Jennings.

The industry is hopeful demand will pick up soon. Pat Bowe, CEO of Andersons Inc., an ethanol producer and grains handler, said he sees driving demand holding roughly 1% to 2% above last year’s levels. Meanwhile, Renewable Fuels Association’s Cooper expects gasoline usage during the busiest summer periods to surpass levels not seen since August 2019. Still, for now, the proposed quotas make sense based on lackluster gasoline consumption, said Ken Morrison, a St. Louis-based independent commodity trader.

While the trimmed quotas won’t have a near-term impact on blending, they still sent tumbling the value of tradable credits known as RINs, which are used to prove quotas have been fulfilled.

On Wednesday, RINs tracking ethanol and biomass-based diesel fell as much as 10% in the day’s trading to the lowest levels in more than a year. With the changes more likely to impact the longer-term outlook, the spot ethanol market shrugged off policy woes and gained 4.5% to the highest level since November.

The Sultan of Sokoto and President-General, Nigeria Supreme Council for Islamic Affairs, Alhaji Sa’ad Abubakar III, has urged Nigerian leaders to do more to improve the nation’s security.

In his Eid-el-Kabir message to Muslims on Wednesday in Sokoto, Abubakar also urged Nigerians to pray more for the leaders to succeed.

“Our prayers are always key towards the success of our leaders. We should sustain the tempo in order for them to succeed in the tasks ahead. 

“Government should be more committed to strengthening security because security remains the bedrock of any societal development. As such, strengthening it will enable us to excel,” he said.

Abubakar further congratulated Nigerian Muslims for celebrating this year’s Eid-el-Kabir in good health, urging them to embrace peaceful coexistence.

A bloc in Peoples Democratic Party (PDP) Concerned PDP League (CPDPL), says it is opposed to any attempt by the party to present Senator Aminu Tambuwal as Senate Minority Leader.

Chairman of CPDPL, Mr Daboikiabo Warmate, alleged in a statement on Wednesday that the group was not in support of Tambuwal, based on his actions as the Speaker of House of Representatives.

Warmate said that instead of Tambuwal, the position should rather be zoned to a state in the North-Central, precisely Plateau.

“That his ambition is dead in its imagination, how much more arrival; nevertheless, the past has caught up with him,” he said.

Warmate stated that Tambuwal had during his leadership as Speaker of the 8th House of Representatives given to him by the PDP, defected to the All Progressives Congress (APC).

“It is with great disappointment and shock to have read on the papers that Tambuwal, the former Governor of Sokoto State and PDP Governors Forum Chairman, wants to be the minority leader of the 10th Senate.

“Somebody that in 2014 took the House of Representatives Speakership we gave to him and defected to another party. This same person eventually came back to the party.

“Now, he wants to be the minority leader of the 10th Senate; we will not give support to you.

“Look, for many years, he was the PDP Governors Forum chairman, but could not speak against the suppression and sufferings of Nigerians,” Warmate said.

According to him, Tambuwal cannot be trusted the second time and does not have the needed courage to be the Minority Leader of the 10th Senate, judging from his antecedents.

He called for a mid-term convention to be followed by the dissolution of the National Working Committee (NWC) of the party to give room for fresh ideas.

The group also urged the Acting National Chairman of the party, Amb. Umar Damagum, not to sign any letter introducing Tambuwal as the Minority Leader of the 10th Senate.

“The former PDP Governors Forum Chairman, performed woefully as a leader of the opposition party.

“No, enough is enough; PDP members cannot be used and dumped.

“It is Peoples Democratic party (PDP), not Elite Democratic Party or Stakeholders Democratic Party, and that is what we want them to know.

“We will not allow members, leaders or any leader to use the party and dump it at will, no! That is unacceptable. We need to tell them the truth.”

Warmate commended the immediate past Governor of Rivers State, Nyesom Wike, for providing the needed opposition voice in the eight years of the APC Buhari-led Federal Government.

*Says it can no longer sustain huge sums spent on electricity bills, purchase of diesel

The removal of fuel subsidy and poor power supply and electricity tariff hike is taking their toll on all sectors of the economy, with the management of the Aminu Kano Teaching Hospital in Kano, saying it can no longer operate its generator set between the hours of 2pm to 6pm daily.

President Bola Ahmed Tinubu on May 29 pronounced fuel subsidy gone and in just this week, electricity Distribution Companies (DisCos) are gearing up for an upward review of electricity tariffs.

This is also as the Manufacturers Association of Nigeria (MAN) recently said that it spent N124.5bn on alternate power in 2022.

In a memo by the Ag. Director Hajara A. Ahmed (Mrs), titled ‘NOTICE OF ADJUSTMENT TIME FOR OPERATION OF GENERATOR SET’, and addressed to Heads of Departments of the Hospital, the Hospital management said the huge money spent on electricity bills and the purchase of diesel had become unsustainable.

Mrs. Ahmed urged all the Heads of departments to adjust their operations to fit to the new time.

“It is with great concern that the management of Aminu Kano Teaching Hospital wishes to inform the Hospital Community that the hike in electricity bills and the huge money spent on purchase of diesel is no longer sustainable.

“In light of the above, I am directed to inform the Hospital Community that in the case of a power outage, the hospital management is constrained not to operate the generators between 2 pm to 6 pm daily (except otherwise authorized).

“Consequently, all Heads of Departments are requested to take necessary steps to handle emergencies, either in the morning or at night.

“However, emergency cases that arise between the hours stated above (2pm-6pm) should be referred to other health facilities within the state,” the Memo read in part.

The Hospital management assured that it would resort to normal services once the situation improves.

She said: “While this adjustment on generator operation is unfortunate news to all of us, the Hospital Management would like to assure all concerned that normal operations will be restored as soon as the situation improves.

“Please Ward managers in the theatres are also to note that in case of a procedure already ongoing and there is a power outage, the side generator attached to the theatre should be powered to complete the procedure.

“All Heads of Departments should bring the content of this notice to the attention of the consultants and all concerned,” she added.

The World Bank said on Tuesday that it planned to commit additional 750 million dollars to deepen Nigerians’ access to electricity through the Nigeria Electrification Project (NEP).

World Bank’s Director of Strategy and Operations for Western Central African Region, Ms Elizabeth Huybens, said this while inspecting the 60 Kilowatts Mini-Grid Project in Kilankwa Community, Kwali Area Council of Abuja.

The project is being implemented by the Rural Electrification Agency (REA) through NEP.

“This is the first national electrification project we see at work here, about $350 million is coming to a close, and we are preparing a successor project that will be $750 million.

“We are definitely extending our support to something that we think is critical and Nigeria is leading the world in small grid development,” she said.

Huybens said that the Kilankwa project would assist the country in providing access to electricity to more people faster than it could have done by just extending the national grid.

“So, I am very impressed that the grids in small communities work and there is also the foresight to think about how one can fully optimize the use of the electricity generated to expand productive activities.

“Like the rice mill that we have just seen, I hope that in the future, we will see a lot more of that,” she said.

The director said that the project was considered because the bank believed that access to electricity by all was one of the most important goals to pursue by any country.

According to her, without electricity, it is hard to think about how communities can live, adding that kids cannot study at night.

“We cannot move toward electric vehicles if we don’t have electricity. In fact, you cannot even charge your cell phone without electricity.

“So, it is hard for me to think about modern life without electricity and it is hard for me to think about reducing poverty without access to electricity.

”And since the World Bank’s overarching goal is to help countries eradicate poverty, we need to help them provide access to electricity for its population,’’ Huybens said.

The Managing Director, REA, Mr Ahmad Salihijo, said that the project was currently serving about 300 households and businesses.

Salihijo said that the project was developed by the World Bank under the Performance-Based Grant of NEP.

“This has been operational for some time now. So, we are privileged to have come here with the World Bank team to see how it is performing.

“We are working on ensuring productive use and also that we have energy-efficient equipment connected to the mini-grid,” he said.

One of the beneficiaries, Mr Ayuba Yabo, a Rice Miller, commended the Federal Government and the World Bank for bringing the project to their community.

Yabo said that the project had assisted him to reduce the cost of diesel to run his business and enabled him to make more profit.