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:

  • Assistance measures in the Senate bill (S. 3756) led by Sens. Grassley (R-IA) and Klobuchar (D-MN) that would reimburse for feedstock purchases in Q1 of 2020
  • The Small Business Administration’s Paycheck Protection Program
    • Designed to provide direct payroll relief to qualified small businesses

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"90% of greenhouse gas emissions from transportation today are from petroleum. So anything on the alternative fuel side to reduce our dependence on oil is a positive" - Chris Bliley, Senior VP @GrowthEnergy #DCEnergyEXPO #EESItalk

via @eesionline

Happening today → the Virtual Congressional Clean Energy Expo. Growth Energy's Chris Bliley will be speaking during the event on what climate change means for jobs and economic development. Tune in here starting at 1:30PM ET: eesi.org/livecast @EEISonline https://t.co/k8g5cukmzo

via @GrowthEnergy

In 2020, the U.S. produced the least CO2 emissions from energy in nearly 40 years -- and petroleum accounted for 97% of transportation sector emissions. Use of low-carbon biofuels like bioethanol today could reduce these emissions by 46%. eia.gov/todayinenergy/…

via @GrowthEnergy

.@SenatorFischer in the @yorknewstimes → "Higher ethanol blends are also far better for the environment than traditional gasoline. Any plan to reduce emissions has to make ethanol part of the solution." yorknewstimes.com/opinion/more-c…

via @GrowthEnergy