Biden’s Ethanol Plan Rattles an Industry Already Under Pressure
- Federal blending mandates came in lower than earlier proposal
- New requirements risk compressing margins for corn-based fuel
Joe Biden speaks at a Bioprocessing facility in Menlo, Iowa.
Photographer: Rachel Mummey/BloombergThe US ethanol industry, already under pressure from rising corn costs and weak gasoline demand, saw its long-term outlook dampen further after the federal government’s surprise pullback in support for the plant-based fuel.
The Environmental Protection Agency blending mandates issued Wednesday limit the amount of conventional ethanol that can be used to fulfill quotas in 2024 and 2025 to 15 billion gallons, a cut from the target of 15.25 billion gallons proposed earlier. With rising input costs already threatening to squeeze margins that had just started to improve, the trimmed quotas are a concerning development for ethanol producers fighting for a bigger share of American gas tanks.