An update on ethanol’s challenges

Since the coronavirus pandemic started and stay-at-home ordinances were issued, the U.S. fuel demand has decreased by a third.

The oil industry says that this is the reason why they need to wave certain refinery blending requirements. According to Bob Dinnen with the Renewable Fuels Association, “The small refinery exemptions that were granted, went from two or three a year to 25, 30, to 40 a year. The refiners began to use those SREs as a way to get out of the program in a fashion that was not intended.”

Experts say that waiving these requirements would crush the corn industry, as ethanol plants already slow production due to COVID-19.