Higher Ethanol Blends Offer a Reliable Market for Expansion
Ethanol has long been promoted as a clean and renewable fuel source, with its most successful application in automobiles. Henry Ford’s Model T was designed to run on ethanol, and the industry has grown significantly since the Clean Air Act and the Renewable Fuel Standard (RFS).
Despite this success, efforts to push ethanol into aviation, marine, and rail fuel markets are diverting attention from the easiest and most effective solution—higher ethanol blends in gasoline. There are no legal, technical, or financial barriers preventing increased ethanol usage in cars, yet the focus has shifted elsewhere.
The push for Sustainable Aviation Fuel (SAF) is questionable, as ethanol’s role in aviation remains uncertain. Meanwhile, expanding the use of E15 and moving toward E20 and E30 could immediately boost demand by billions of gallons. “The perception is that 15 percent is the end game when it should be just the start,” experts argue.
With post-pandemic gasoline consumption rising to nearly 140 billion gallons, there is a strong case for increasing ethanol blends. Expanding E15 alone could add 5-7 billion gallons to demand, while E30 could double ethanol’s current use.
Additionally, competition from Brazil is growing, with the country expanding its corn ethanol production and export capacity. U.S. ethanol producers must focus on maintaining and growing domestic markets rather than chasing uncertain opportunities in aviation fuel.
The future of ethanol lies in increasing its role in gasoline, reducing reliance on petroleum-based additives, and supporting farmers. Legislation like the Next Generation Fuels Act could facilitate this transition, benefiting both the environment and the economy.
As industry leaders have pointed out, “The future is now.” Ethanol producers must focus on automobiles—the market that has always supported them—to ensure long-term success.