Ethanol’s Road To Recovery
As local and state governments lift quarantine restrictions, drivers are returning to the pumps. Despite a surge in fuel demand, ethanol producers say that it could still be a long road to recover.
More ethanol plants are coming back online, thus pushing output to its highest levels since April. Geoff Cooper, President and CEO of the Renewable Fuels Association, states, “It seems that the worst may be behind us. We’re beginning to see some signs of recovery, as states begin to ease stay-at-home restrictions, and people get back on the roads.”
Despite the rebound, more than 60 plants remain idle. To help producers recover, the industry wants the Trump administration to dismiss waiver requests.
Leaders are optimistic that the Senate will include ethanol aid in another stimulus package. Cooper states, “With the CARES Act, there was quite a push, led by Sen. Grassley and others, to include some energy relief for biofuels in that package.”
The House’s approved HEROES Act included ethanol assistance. The provision offers 45 cents per gallon produced between January and May 1st.