After a year of government red tape the so called blend wall has been breached. Fuel manufacturers now have the freedom to begin blending 15 percent ethanol into gasoline, rather than the current 10 percent. Tom Buis with Growth Energy, says this is good news.
But growth of E15 still faces many challenges. Many states have not changed their laws to allow the higher ethanol blend, and Buis says since the program is voluntary, it will really depend on fuel makers to choose whether to increase the blend.
But with crude oil well over 100-dollars a barrel, Buis says blending more ethanol will allow fuel makers to keep the price of gasoline down.
Buis says in the end it will be consumers that will drive the demand for higher blends of ethanol.