The unprecedented, nationwide Coronavirus (COVID-19) health pandemic sent a shockwave throughout the biofuels industry. Due to stay-at-home orders across the country, drivers vacated the roads, which caused gasoline and ethanol demand to plummet.
In just a few weeks, demand fell by 50% and ethanol production fell as low as 9.45 billion gallons annualized (compared to 15.8 billion gallons pre-pandemic). With a fast-shrinking market for biofuels, ethanol stockpiles reached all-time highs and prices crashed, causing plants to face significant losses on every gallon produced.
As ethanol plants were forced to slow production or idle altogether, markets down the supply stream were impacted too. Corn farmers struggled. Food and beverage companies and water treatment facilities that use carbon dioxide from our plants faced shortages. Livestock owners who purchase dried distillers grains (DDGs) to feed their cattle had to find more costly and less nutritious alternatives. As cars returned to the road, gasoline and ethanol demand has steadily risen, but production remains below pre-pandemic levels, and financial relief remains key to our industry’s recovery.
Growth Energy continues to support:
WASHINGTON, D.C. — Amid a global energy crisis and rising fuel prices at pumps across the country, members of the U.S. House of Representatives introduced legislation to repeal the Renewable Fuel Standard (RFS). Emily Skor released the following statement slamming the legislation for trying to reduce Americans’ access to homegrown, low carbon biofuels: “Now, more […]
WASHINGTON, DC – America’s top biofuel and farm advocates called on President Biden to swiftly expand access to lower-carbon, lower-cost biofuels as the administration seeks to address the rising cost of fuel. In a letter to the White House, rural leaders noted that biofuels hold the power to “insulate consumers from volatile oil markets by extending the fuel […]
Sustainable aviation fuel is the future of flying ✈️, and a critical step toward decarbonizing transportation, which is why we’re excited to announce an agreement with @Gevo_Inc to transition ethanol production at three U.S. facilities to support SAF: https://t.co/W2cYJxxTCU https://t.co/pLlLmuGPVf
TOMORROW → @austindillon3 races in the @GetBioethanol car at @kansasspeedway! Tune in: 📆 Sunday, October 24 ⏰ 3:00 PM ET 📺 NBCSN #GetBioethanol #bioethanol #NASCAR @NASCAR @rcrracing https://t.co/S3pBq7ZjFR