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:
Today the co-chairs of the Biofuels Caucus introduced two important bills to make biofuels more accessible. Learn more about⤵️ 🌽 the Adopt GREET Act 🌽 and the Renewable Fuels Infrastructure Investment and Market Expansion Act https://t.co/G1E98lNLj0
Thank you @RepCindyAxne + @RepDustyJohnson for your continued bipartisan support of investing in the future biofuels and for introducing the Adopt GREET Act + the Renewable Fuel Infrastructure Investment and Market Expansion Act → growthenergy.org/2021/03/03/gro… twitter.com/RepCindyAxne/s…
As a co-chair of the House Biofuels Caucus, I'm proud to help introduce new legislation that will help grow our biofuels markets. Learn more about⤵️ 🌽 the Renewable Fuels Infrastructure Investment and Market Expansion Act 🌽 and the Adopt GREET Act ⬇️ https://t.co/2CRS5CpHLP