There’s work to do in 2025 to ensure that ethanol, a renewable fuel made from corn, continues to see market growth for the next four years.
Ron Lamberty is the Chief Marketing Officer of the American Coalition for Ethanol. He works with oil companies and convenience store chains to sell higher blends of ethanol in gasoline, such as E15 and E85.
Lamberty tells the Mid-West Farm Report he wants to see the Trump administration support tax credits for car companies to manufacture flex-fuel vehicles. He also wants to see the new administration embrace higher ethanol blends to lower prices for drivers. E15 is about 15 cents cheaper per gallon than standard gasoline (E10). E85 can be about a dollar cheaper than the standard.
Competitive cost-share grants are available through the U.S. Department of Agriculture’s Higher Blends Infrastructure Incentive Program for the installation or upgrading of fueling equipment to dispense ethanol blends greater than 10 percent or biodiesel blends greater than 5 percent. Lamberty says USDA has given about $700 million in reimbursements for stations. He says he hopes the new administration will continue the reimbursement program. Trump supported the program his first time in office.
Some of the “what-ifs” that stand out to ACE in 2025 will be whether or not the new Trump administration will grant more small refinery exemptions or SREs. These are waivers that allow a petroleum refinery to be exempt from the Renewable Fuel Standard requirements, meaning they don’t have to blend a certain amount of ethanol into their product. Lamberty says SREs would be “disastrous” for the ethanol industry. He notes tariffs could also be problematic if countries retaliate with tariffs on U.S. ethanol.
It’s not just about the blends that are available for vehicles, it’s also about the cars themselves. With Tesla’s Elon Musk in President-elect Donald Trump’s Cabinet, how does that change the appetite for flex-fuel vehicles? Lamberty says he’s encouraged by automakers, such as GM, announcing they will offer more models with a flex-fuel option.
Another encouraging sign for ethanol in 2025 — ACE is headquartered in South Dakota. S.D. Sen. John Thune will be the Senate Majority Leader, and Lamberty is confident that he will be in ethanol’s corner.