2023 was a year to remember for the ethanol industry with corn ethanol demand reaching the highest levels since 2019 and the blend rate in gasoline setting a record as production rose to 15-and-a-half billion gallons.
Rising domestic demand for ethanol and growth in the export market made for a strong 2023 in the ethanol industry says Renewable Fuels Association president and CEO Geoff Cooper.
However, that doesn’t mean there won’t be challenges ahead. Cooper says that the hangover effect from COVID still lingers.
Another speed bump for ethanol remains with the still undecided ruling on year-round E15. Despite progress from Midwest governors pushing for an answer and a lawsuit to get a ruling from the EPA on the E15 blend, year-round availability of E15 still remains in question.
A big win for ethanol in 2023 could be the Treasury Department’s guidance due by next March that allows a favorable tax credit for Sustainable Aviation Fuel made with ethanol. Cooper calls it a possible ‘game changer’ for the industry and corn growers that could yield a 36-billion-gallon market by 2050. That is more than double today’s production.
