Conference Summary

Biofuels summit highlights role of ethanol in transport decarbonization

Growth Energy Biofuels Summit, Sept. 9 – 12, 2024, Washington DC

Biofuels Summit, Washington, DC

The Growth Energy Biofuels Summit was held in the nation’s capital on September 9–12, 2024. The event was held near Capitol Hill and featured guest speakers from several senior government officials (Sec. Tom Vilsack, USDA, Administrator Michael Regan, EPA) and a host of panel discussions on various topics pertaining to the role and future of ethanol in the decarbonization of transport. 

(Image - Flags marked the 9/11 commemoration.)

Context

The US produces and consumes nearly 15 billion gallons of ethanol each year. The production is limited not by the capacity but the implicit caps on the amount that can be blended in. The case for increasing ethanol use rests in the work being done by the farmers and industry to continue lowering the lifecycle carbon intensity of the fuel, that renewable fuels are the only pathway to reducing emissions from the existing fleet, and that there are new hard-to-decarbonize end-uses such as heavy-duty engines and aviation.

 

The plot here shows some of the technologies that have the potential to reduce the carbon intensity of ethanol and the upper bound on the costs. This is based on work done by the EFI Foundation which is going to release a detailed report later. There have been other studies which quantify the carbon intensity of ethanol and pathways for further reduction which we have covered previously.

Topics Discussed

The following were some of the high-priority topics discussed:

  1. Restore access to E15 year-round, nationwide: Currently, ethanol blending in gasoline is capped at 10% (E10), although some states can sell E15 through temporary waivers. The industry is seeking a permanent allowance of E15 across the nation at all times of the year. This is estimated to reduce GHG emissions by 17.6 million tons, equivalent to removing ~ 4 million vehicles off the road.
  2. Clarity on the 45Z tax credit: The Clean Fuels Production Tax Credit, also known as 45Z, will provide tax credits for low-carbon intensity fuel production—up to 20 cents per gallon for non-aviation fuels and 35 cents per gallon for sustainable aviation fuels (SAFs). The industry would like to extend the duration of these incentives to beyond 2027, the current expiration date, include new and advanced pathways for carbon reduction for agriculture and fuel production (see image, which shows a few of such available pathways), and generally provide clarity to farmers and biofuel producers on the rule as soon as possible.
  3. Renewable Fuel Standard: The current EPA standard sets an implied cap of 15 billion gallons on the volume of conventional biofuels. The industry is seeking an increase in this volume, considering the rapid recent growth of biofuels such as renewable diesel and biodiesel. Also advocated is the use of the Argonne GREET model to accurately quantify lifecycle GHG emissions and the recognition of advanced technologies such as carbon capture in bioethanol production.

Final remarks

Renewable or low carbon fuels are the only pathway for reducing GHG emissions from the fleet of vehicles on road today. The use of ethanol and other renewable fuels is expected to serve as a bridge for the industry as it navigates a tough transition away from conventional fossil fuels. Expect more action to come in the following months. Stay tuned, sign up below to receive updates.

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