As corn producers look to expand market opportunities and create more value for their crop, those within the ethanol industry are working to expand E-15—which includes the push for the sale of E-15 year-round.
“It is going to take an act of Congress, which is not an easy thing to get done,” said Emily Skor, President and CEO of Growth Energy, which advocates for the ethanol industry.
“But, I am very optimistic. We are very close [to year-round E-15]. We’ve had a really good year for E15. California approved it. It is now going to be available in all 50 states. We just need it available all 12 months of the year.”
She said that two things are currently working in favor of ethanol expansion.
“The first thing is the state of the farm economy. What will this do for the U.S. corn farmer that has a huge crop that needs support, that needs strong corn prices? So, the fact that this is a U.S. market for U.S. commodities, and to the fact that it lowers fuel prices, those two things are so top of mind. And I think they will work to our advantage as we try to get Congress to do something most likely, probably the end of January, when they move the next big fiscal bill,” said Skor.
She also shared how sustainable aviation fuel is the next big area of growth for corn producers.
“There’s a huge global conversation about that as countries like Japan are looking to make it and they’re thinking, I want U.S. ethanol to be their feedstock, but also domestically. And, so we know we finally have an ethanol plant here in the U.S. that’s making alcohol to jet. And so that’s exciting. That is a long-term market opportunity for us as an industry.
“We still have to get through the technology. We’ve got to get strong financing. And we need some incentives to get the economics in line. But I think collectively there’s some excitement that that is a long-term market opportunity because the aviation industry wants to decarbonize. They’re going to need the volume that we can produce as a feedstock,” added Skor.
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