More Ethanol in Fuel Means More Benefits

By Scout Nelson

Ethanol has long been a key player in motor fuel, dating back to Henry Ford’s Model T, which was designed to run on ethanol derived from agricultural products. The industry’s growth, fueled by Clean Air Act programs and the Renewable Fuel Standard (RFS), has centered on blending ethanol with gasoline. However, despite the ability to increase ethanol use in gasoline, attention has shifted to alternative markets that present numerous challenges.

Sustainable Aviation Fuel (SAF) has been promoted as a new opportunity for ethanol, but its viability remains uncertain. Meanwhile, blending higher levels of ethanol into gasoline is a proven and immediate way to expand demand. Current regulations allow ethanol to be blended beyond 10%, yet limitations such as the Reid Vapor Pressure (RVP) waiver continue to hinder progress. E15, E20, and E30 blends offer significant benefits, including reduced emissions, increased octane, and cost savings.

Gasoline consumption remains strong, with demand rising to nearly 140 billion gallons in the U.S., particularly for high-octane fuel. While some tout SAF as a major new market, its potential contribution of 3 billion gallons is modest compared to the 5-7 billion gallons achievable through nationwide E15 adoption or the 15 billion gallons possible with E30. The focus should remain on maximizing ethanol’s presence in gasoline rather than diverting resources to uncertain markets.

Competition from Brazil further complicates matters. The country has expanded its corn ethanol production, threatening U.S. exports. In response, ethanol producers must prioritize increasing domestic demand rather than relying on uncertain international markets. Expanding ethanol use in gasoline is an immediate and feasible solution that does not require new legislation or tax incentives.

The Next Generation Fuels Act presents an opportunity to address regulatory barriers, boost octane standards, and ensure ethanol’s continued growth. Increasing ethanol blends in gasoline supports farmers, enhances energy security, and reduces emissions. Rather than diverting efforts toward uncertain markets like SAF, the ethanol industry should focus on strengthening its core market—automobiles—ensuring a stable and growing demand for ethanol.

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