For decades, the standard blend of ethanol in gasoline was 10%. That left ethanol producers facing what was called the ‘blend wall’. Once all gasoline was blended at 10%, there was little room for growth. However, as more gas stations install new pumps and move to the new 15% standard, ethanol demand in Illinois and many other states has broken through the 10% blend wall. Bob Dineen, president of the Renewable Fuels association, says 1016 was a very good year for ethanol production.
As for the future, a lot depends on federal support for increased ethanol demand, and Dineen says so far the new Trump administration seems very supportive of increased ethanol blends.
Dineen reminds farmers that even though they are hearing good things from the incoming Trump administration, there remain powerful anti-ethanol forces at work, and the ag community needs to keep the pressure on the new administration to keep their campaign promises to promote ethanol.