Higher ethanol blends would benefit consumers, corn industry, panel says

Year-round ethanol blend bill passed by US House faces uncertain Senate path

The roundtable, hosted by Rep. Julie Fedorchak, R-N.D., mostly consisted of members connected to agriculture, which would benefit from easier access to corn-based ethanol. 

Dave Olson, bulk petroleum manager of West Fargo-based fuel retailer Petro Serve said E15 is about selling at a 15 cent discount to regular unleaded in the Fargo area. 

“They’re looking for a bargain,” Olson said of consumers. 

While his company is committed to offering E15, he said others are not interested in selling a fuel they can only offer for part of the year. 

Dave Ripplinger, a bio energy economist and associate professor with North Dakota State University, said he understands that hesitation with thin profit margins in the retail world. 

“They can’t afford to make mistakes,” Ripplinger said. Knowing E15 could be sold year-round, “changes the economics” for those businesses, he said. 

In the 20 years since ethanol production has taken off, North Dakota has gone from less than a half-million acres of corn to 4.5 million acres of corn. 

North Dakota’s five ethanol plants process 80% of the corn, with livestock feed one of the main byproducts of fuel production. 

Ripplinger said the possibility of carbon capture at ethanol plants has the potential to boost North Dakota oil production, further advancing the importance of ethanol production. 

“That provides this whole additional list of benefits that will support state economic activity,” Ripplinger said. 

Corn-based sustainable aviation fuel, ethanol use in maritime shipping and tractors that could burn ethanol instead of diesel are other potential areas where the ethanol market could expand, roundtable members said. 

The Gevo ethanol plant near Richardton is expanding with sustainable aviation fuel in mind. 

The U.S. House was able to pass a year-round E15 bill in May, something Fedorchak called a “small miracle,” in part because some key House leaders voted against it. 

The bill still needs to clear the Senate. Fedorchak said she expects the Senate to make some changes to the bill, meaning if it passes the Senate, the House would have to take it up again.

The restriction on higher ethanol use exists because of past studies showing possible detrimental effects of burning E15 in the summer months. 

Fedorchak called that “old science” that has been refuted. 

Panel members pointed out that some other countries allow much higher ethanol blends. 

Brenda Elmer, executive director of the North Dakota Corn Growers Association, noted that Brazil, a key U.S. competitor in the corn and ethanol industries, as of Aug. 1 is mandating at least 32% ethanol in gasoline. 

“We’re just asking for the option to sell E15,” Elmer said.

Reach North Dakota Monitor deputy editor Jeff Beach at jbeach@northdakotamonitor.com