E15 Momentum: Growth Energy Pushes for Year-Round Sales and Export Growth:
Growth Energy CEO Emily Skor spoke with Farm Director KC Sheperd, highlighting the strong momentum for E15 (a 15% ethanol blend) and the industry’s focus on securing permanent regulatory fixes and expanding global markets.
E15 Growth and Legislative Push
The industry is seeing unprecedented momentum, making a push to update a 35-year-old regulation that currently limits year-round sales of the fuel:
- National Reach: E15 is now legally able to be sold in all 50 states following recent legalization in California.
- Retail Expansion: The number of retailers selling E15 has increased by almost 25% this year, the largest growth since 2018.
- Legislative Priority: Securing a legislative fix to allow year-round E15 sales nationwide remains a top priority, with conversations ongoing on Capitol Hill and with the White House. This permanent fix would eliminate the current need for the EPA to issue emergency waivers each summer to allow E15 sales due to fuel volatility restrictions known as Reid Vapor Pressure (RVP) limits.
- Bipartisan Effort: The push has strong bipartisan support. For instance, the Nationwide Consumer and Fuel Retailer Choice Act has been introduced in Congress to permanently extend the RVP waiver to E15, eliminating seasonal restrictions.
- Current Status: While a permanent fix remains the goal, recent legislative attempts, such as including the fix in a broader short-term funding bill, have faced opposition from some House Republicans concerned about the impact on the U.S. refining sector.
Economic and Agricultural Benefits
E15 is being positioned as a solution for both consumer costs and farm oversupply:
- Consumer Savings: Higher blends of ethanol make fuel more affordable. Consumers typically save 10 to 30 cents per gallon with E15, with some reports showing savings as high as 80 cents to a dollar.
- Corn Demand: If every vehicle drove on a 15% ethanol blend, it would utilize 2.5 billion bushels of U.S. corn every year, providing a vital market for corn producers who are seeing fantastic crops and need a home for their grain.
- Political Focus: The two main drivers in Washington supporting the E15 fix are the need to address the state of the farm economy (providing markets, not handouts) and the national attention on consumer prices and the cost of fuel.
Expanding Global and New Market Opportunities
Beyond domestic fuel pumps, the ethanol industry is actively pursuing export and new fuel applications:
- Record Exports: The U.S. is on track to export a record amount of ethanol this year, beating last year’s record. This is driven by global demand for affordable, lower-carbon-intensity fuel.
- New Applications: Ethanol is appealing for new markets, including Sustainable Aviation Fuel (SAF) and marine fuel, due to its affordability and lower carbon intensity.
- Trade Advantage: Ethanol is seen as favorable in trade deals because it is a net surplus in U.S. trade, offering an opportunity to reduce the national trade deficit. The industry is seeing positive trends in trade with the UK, Japan, and Vietnam.
