Ethanol
The White House set a goal of producing 3 billion gal. of sustainable aviation fuel (SAF) by 2030. Senators say outdated climate data is keeping producers from reaching the finish line, but a new bill could change that.
Analysts at Wolfstreet believe the U.S. is seeing the first hint of an EV effect on gas demand. John Phipps looks at the data and explains why a possible peak in U.S. gasoline consumption could impact ethanol demand.
“EPA is using decade-old analysis to measure the carbon intensity of ethanol, despite the Department of Energy’s updated data,” says Chris Bliley of Growth Energy. “This bill will ensure we capture the accuracy.”
Generally, E15 is banned in summer months, but EPA flipped the script for the first time last year when it lifted the ban to lower pump prices.
The U.S. ethanol industry is lobbying the Biden administration to ensure lower-carbon aviation fuel made from ethanol will qualify for subsidies.
Michael Regan, EPA administrator, appeared before the House Ag Committee on Wednesday to discuss everything from WOTUS to the farm bill. Here are the highlights that will directly impact producers.
Exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year.
Emily Skor, Growth Energy CEO, says the fuel industry has only “scratched the surface” of ethanol potential. She feels this act will help unleash ethanol’s capabilities.
While Iowa and Nebraska attorney generals have weighed suing EPA for its delayed ruling, members of Congress feel the matter should be dealt with through legislative process.
Finding a new path for ethanol demand could come in the form of higher-octane fuels. NCGA says the Next Generation Fuels Act would address climate goals while also driving up the domestic demand for corn.