This content is sponsored by National Corn Growers Association.
Millions of Americans fill up their gas tanks every day and may be unaware they are utilizing a renewable fuel that has greatly increased in use in recent decades — ethanol.
Today, nearly every gallon of gasoline in the U.S. contains at least 10% ethanol, a renewable fuel that results in fewer greenhouse gas emissions than regular gasoline alone.
The renewable fuel can provide a lower-priced alternative for consumers and help to hold prices steady when demand for gas rises, and prices fluctuate.
The use of ethanol also has a major economic impact on U.S. agriculture.
“We grow corn on about 92 million acres across the entire U.S.,” says Neil Caskey, chief executive officer of the National Corn Growers Association. “About a third of that corn is processed to make ethanol. So it is a really important market for America’s corn farmers.”
When ethanol was first being used in the early 1970s, only a few million gallons were being produced.
But Mac Marshall, with Balcony View Consulting, points out that farmers saw its economic potential.
He says the development of ethanol has had to overcome a “food vs. fuel” narrative, which he believes is a false choice.
“I think this is a misconception that still exists and permeates in the marketplace today,” he says.
Marshall says a bushel of corn run through an ethanol facility isn’t all used up to make the ethanol.
“Recognize that a third of that is coming back and still allowing participation in the food chain,” he says, adding that the corn can still be used as high-protein feed for livestock.
Today, close to 15 billion gallons of ethanol are created annually.
Expanding use of E15
Caskey says one of the biggest immediate goals for the NCGA in Congress is changing government policy to allow for year-round use of E15 — the 15% ethanol fuel blend.
He’s been encouraged by a shifting alliance related to biofuel advocates and the petroleum industry.
At one point the petroleum industry was at odds with ethanol supporters, viewing the fuel as a competitor.
But he says they are now united behind getting year-round approval of E15.
E15 was first approved by the EPA in 2011, but its use has not been allowed for all 12 months of the year.
Advocates of E15 have said for years that federal guidelines are outdated and that E15 should be allowed year-round, given that it helps consumers save money at the gas pump and reduce emissions.
Rep. Ashley Hinson (R-IA) says she fully supports the effort, as someone who represents a state that produces nearly 30% of the nation’s ethanol.
“I’m a mom who drives a minivan, trust me, I put some miles on, and I want the choice of being able to put E15 in my car,” she says, adding that she used to have a flex-fuel minivan that allowed her to use E85.
Hinson says ethanol helps consumers save billions of dollars in annual costs and creates tens of thousands of jobs.
In 2023, more than 72,463 U.S. jobs were directly associated with the ethanol industry, with an additional 322,002 indirect and induced jobs supported across all sectors of the economy, according to the Renewable Fuels Association (RFA).
Hinson says lawmakers are continuing to advocate to congressional leadership to try to get the E15 legislation to a floor vote, noting that it has bipartisan support.
“This is about the certainty for our producers,” she says. “Having to go through this fight leads to instability in the market, and also just the angst that they don’t need right now.”
Protecting consumer choice
Hinson and Caskey are concerned that the recent push for electrical vehicles — EVs — is unnecessarily limiting consumer choices for what type of vehicles they drive.
Caskey says he understands the desire to lower vehicle emissions, but feels the targets have been too stringent and are effectively making it impossible to sell vehicles with internal combustion engines.
Taking away the market for vehicles that run on traditional fuel and ethanol could have a huge economic impact on farmers, he says.
He cited a University of Nebraska study that found that in the five states where the most corn is grown, reducing the market for traditional fuel and ethanol vehicles could potentially lead to a farmland-value loss of close to $100 billion.
“I mean, that’s staggering,” he says.
Looking ahead, he says Congress needs to help push for higher-octane vehicles, which can provide cleaner air and at the same time help farmers.
Hinson, who’s a member of a bipartisan group of lawmakers, informally referred to as the “Corn Caucus,” says it will be important to continue to advocate for policies that give consumers choices.
She anticipates lots of legislative struggles in the 119th Congress over tax policy, including tax credits that help spur innovation.
“We’re all invested in making sure that we preserve American energy independence and are able to innovate,” she says.
Growth could take off with the airlines
Ethanol advocates see major potential for its use in the airline industry.
Airlines have been starting to use what they call sustainable aviation fuel (SAF), though its use is still in its infancy.
United Airlines is one of the air carriers working on SAF.
“Today we use more SAF than any other U.S. airline. We’re very proud of that,” says Tom Michels, director of government affairs for United.
Much of the SAF is mainly comprised of fats and grease from used cooking oil, which can be refined.
While United currently uses about 10 million gallons of SAF, that’s dwarfed by the 4 billion gallons of jet fuel it needs annually.
But Michels says SAF is “very promising” and he believes ethanol has a lot of potential.
He points out that corn for ethanol is grown in the U.S. and it tends to be lower in cost than products made with soybean oil or other oil seeds.
Michels also says it could help United lower its carbon footprint, which is important to the airline.
While future innovative uses for ethanol fuel show promise, advocates say the need to advance E15 legislation and protect consumer choice will remain critical priorities for the ethanol industry in the year ahead.
