Image courtesy of RFA.
As tensions rise in the Middle East following conflict involving Iran, the ethanol industry says it now has a renewed case for Congress to move quickly on approving year-round E15 sales.
Supporters argue that expanding access to E15 would help shield American consumers from geopolitical volatility that often rattles global energy markets.
“It just speaks to the need for us to take every action we can to insulate ourselves from these kinds of geopolitical-induced price spikes.”
That message is gaining urgency as crude oil and gasoline prices respond to instability overseas. Troy Bredenkamp with Renewable Fuels says allowing E15 to be sold year-round would strengthen U.S. energy independence at a time when global supply chains are under pressure.
“If it were to be adopted nationally, it would remove or displace almost half of the volume that is coming from OPEC countries.”
Advocates say increasing domestic ethanol use would not only reduce reliance on foreign oil, but also provide a boost to corn demand. However, Bredenkamp acknowledged that rising global tensions could also create new challenges for farmers already facing tight margins.
“At probably the worst time possible, you’re going to see input prices going up, as well, for the American farmer.”
The debate over E15 has long centered around regulatory hurdles and opposition from certain segments of the refining industry. Even with presidential support for year-round sales, Bredenkamp noted that resistance remains, particularly among mid-size refiners.
“Mid-size refiners, in particular, will have a very comfortable margin, regardless of what’s happening in the Middle East.”
Supporters of E15 argue that consumers, not refiners, stand to benefit most from expanded ethanol blends. Bredenkamp emphasized that higher ethanol blends can help ease pressure at the pump during times of global uncertainty.
“Every additional percentage of ethanol that could be blended into gasoline is going to lower the price at the pump. That is our story…that is the one we will be trying to get through to Congress, and the need to get year-round E15 done.”
While there has been speculation that year-round E15 language could be attached to broader legislation, Bredenkamp indicated he did not expect it to move as part of the farm bill. He anticipated that House Agriculture Committee Chairman GT Thompson would likely consider the issue non-germane to that legislation, keeping the E15 debate on a separate legislative track.
