Visibility to Growth and Disciplined Capital Management
Ethanol
Ethanol plant in Aurora, South Dakota.
U.S. Fuel Ethanol Exports
(MBPD)
Rest of Industry ■Valero
112
98
91
25
76
19
19
55
54
13
40
87
53
51
63
72
79
39
2013
2014
2015
2016
2017
2018
2019*
Source: U.S. Energy Information Agency (EIA).
*2019 through August 31.
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-
Operations
14 plants with 1.73 billion gallons annual production
capacity
Dry mill production process, where corn is ground into
flour and mixed with water before fermentation
Plants purchased for approximately 37% of
replacement cost
Efficient plants with scale, located in corn belt
Operational best practices transferred from refining
•
Plant capacity at 130% of original design
•
Cost advantaged versus the industry
•
•
Outlook
Ethanol expected to remain in the U.S. gasoline pool and demand
expected to grow with year-round E15 and CAFE standards
2019 exports impacted by trade barriers, higher domestic corn
prices with the late corn crop, and lower gasoline prices which
reduces blend economics
Expect a rebound in export growth
U.S. corn-based ethanol is the most economic choice for export into
global markets
- Global mandates to reduce GHG emissions and favorable blend
economics
Existing logistics assets well-positioned to support expected
rebound in export growth
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