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Another ethanol plant is shutting down

Another Midwest ethanol plant is shutting down.

Siouxland Energy Cooperative, a producer owned company located in northwest Iowa, says it will idle production at its ethanol production facility in Sioux Center.

Officials say the closing is because of small refinery exemptions granted to large oil refiners, which they say have undermined the Renewable Fuel Standard and reduced ethanol demand by four billion gallons.  They expressed hope that they will be able to resume production once the RFS issues are addressed.

According to the Renewable Fuels Association, 17 ethanol plants nationwide have closed over the past few months, most of them because of poor profit margins.

  • Dear Mr. President September 16, 2019

    As you open the U.S. Strategic Petroleum Reserve to help stretch World Oil Supplies, may I suggest that you make full use of the Renewable Fuels Standard to help stabilize and increase fuel supplies. This can be done by forcing Oil Refiners to comply with their full Biofuel Blending Obligations under the Renewable Fuels Standard.

    It seems very odd to me that we are willing to open our Strategic Petroleum Reserve and use up our Emergency Oil Supplies, while we have ethanol plants shut down in the Midwest, due to all the Refinery Waivers issued to Small Refiners to not comply with the Renewable Fuels Standard.

    Mr. President please stop the EPA from playing games with the Renewable Fuels Standard. Part of the purpose of the Renewable Fuels Standard was to promote Secure Fuel Supplies. Let’s do that!

    The Midwest Biofuel Industry is ready and willing to help, but you must stop the EPA and Oil Industry from continually sidelining the Biofuel Industry with Refinery Waivers and Unnecessary Biofuel Blending Restrictions.

    Sincerely,

    Thomas Blazek

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