The ethanol industry had been expecting sales of gasoline-powered vehicles capable of running on ethanol blended fuels to slow as electric vehicle sales picked up due to Biden Administration tailpipe emission rules that favor Evs.
But now, Troy Bredenkamp with the Renewable Fuels Association says corn-based ethanol has gotten a second wind from President Trump and republican lawmakers’ plans to end EV tax credits and to cut charging station funding.
Audio Player“Long-term, we think that bodes well for the liquid fuel and the internal combustion engine. In terms of liquid fuel, we think that we’re one of the best options out there, in terms of not only emissions but renewable and obviously, price friendly for the consumers.”
Without EV tax credits, favorable tailpipe rules and more chargers, the Washington Post reports industry experts see canceled investments and factory shutdowns. Ultimately though, Bredenkamp thinks most stakeholders will agree that hybrid vehicles that can run on gasoline, ethanol blends and electric power are the best solution.
Audio Player“The tax credit being eliminated would have an impact on hybrid technology. But I think at the end of the day, I think, eventually, consumers and the manufacturers hopefully get to the point where hybrid technology is the winner.”
That would give ethanol a role in a ‘best-of-both-worlds’ technology,” at least in light-duty vehicles. But, Bredenkamp says the biggest prize remains in greenlighting nationwide year-round E15 sales, which has already been approved for South Dakota and seven other states.
Audio Player“That’s going to lead to a lot more ethanol production. That’s going to lead to a lot more corn grind and ethanol and corn demand, which is very positive for the rural economy.”
The Iowa Renewable Fuels Association believes the year-round use of E15 nationwide could unlock a new seven billion gallon a year market opening for ethanol.
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