Sorghum Industry E15: Demand is crystal clear, but we have our reservations

The sorghum industry says the demand for E15 is crystal clear, but they have concerns around tax credits like 45Z. They tell aginfo.net they are currently in a holding pattern.

“45Z, certainly something that our industry spent a lot of time in. We worked very hard to make sure that sorghum was included as one of the eligible feedstocks in the 45Z discussion. So certainly up to a new Administration on what that all looks like and how things go forward there, we’ll have to wait and it’ll take some time to work through those processes,” said Tim Iust.

Analysts with StoneX have also been watching for guidance around 45Z. They say despite the delays, they have a good long-term outlook.

‘We’re going to see, you know, increased demand for products and we could see, you know, corn demand increase 2030 almost 100% if we were to, you know, supply all the future sustainable aviation fuel demand with ethanol,” Jim Pirolli.

Several groups, including the Clean Fuels Alliance, have called on the EPA to quickly set renewable fuel standards for next year and beyond. They tell Administrator Zeldin that robust standards increase energy security and would reflect demand in new markets like synthetic jet fuel.

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