A serious dilemma faces the corn starch and emerging cellulosic ethanol industries, and the dilemma will become increasingly obvious late this year and in the following several years. The dilemma comes partly from rapidly increasing mandates for corn starch ethanol blending this year and in the next two years and the EISA’s rapid increases in advanced biofuels mandates from now through 2022, combined with the ethanol blend wall. The blend wall along with a downward trend in domestic gasoline use creates a maximum domestic ethanol market that is significantly smaller than the government biofuels mandates. With rising advanced biofuels mandates to support the emerging cellulosic ethanol industry and meet future air quality standards, more advanced biofuel in the short term leads to a potential shrinkage of the corn starch ethanol market. An immediate market solution to this problem is not in sight. High priority on raising the blend wall would significantly reduce these challenges.
Organization |
Agricultural Marketing Resource Center |
Publisher |
Iowa State University |
Publication Views |
1201 |
Material Type |
Written Material |