E15 Gasoline Gains Traction as Drivers Hit the Road
A surge in summer road trips is driving up ethanol demand in the United States, offering a timely boost to corn farmers and renewable fuel producers. With gas prices low and favorable production economics, ethanol blending is reaching record levels.
This season’s travel is expected to hit historic highs. According to AAA, 61.6 million people are driving during the Independence Day holiday, a 2.2% increase from last year. Memorial Day travel also set records with 45.1 million vehicle travelers. The main reason? Cheap fuel.
Ethanol, a corn-based fuel additive, is becoming even more popular due to the availability of E15, a gasoline blend with 15% ethanol. Although E15 was previously restricted during summer over smog concerns, the Environmental Protection Agency (EPA) approved year-round sales this year, giving drivers access to a cleaner and more affordable fuel.
“Given the significant demand and the economics of producing ethanol are advantageous, we’re seeing a record level being blended into the pool,” said Ilshat Haris, managing director and partner with Boston Consulting Group.