In the United States (US), Aemetis, Inc., a diversified global renewable natural gas and biofuels company, notes that the US Environmental Protection Agency (EPA) issued waiver allowing a 15 percent blend of ethanol (E15) to continue to be sold after May 1, 2025, will benefit the company through increased demand and sales of the renewable fuel nationwide.
The average blend of ethanol in the United States in 2024 was 10.4 percent, and 14.2 billion (US) gallons (≈ 53.75 billion litres). The adoption of E15 allows up to a 50 percent increase in the domestic market for ethanol.
The EPA’s action allowing nationwide E15 sales to continue is a significant step toward increasing the demand for ethanol and has broad support for permanent approval from the President, as well as numerous members of Congress. Permanent national approval of E15 would allow the demand for ethanol to grow as consumers nationwide benefit from lower-cost, domestic, renewable fuel that lowers the price of gasoline and supports rural communities with good jobs throughout the country, stated Eric McAfee, Chairman and CEO of Aemetis.
No technical hinders
According to the Renewable Fuels Association (RFA), the E15 blend is expected to help American drivers save money at the pump, reduce carbon emissions, strengthen rural economies, and enhance domestic energy independence.
According to the EPA, the E15 blend is approved for use in more than 95 percent of gasoline-powered vehicles on the road today,
Senate Bill 2707, the “Nationwide Consumer and Fuel Retailer Choice Act,” was recently introduced into the US Congress by 14 senators.
This bill proposes the permanent sale of year-round E15 throughout the United States, except in states such as California that have their own fuel regulations.
California has yet to approve E15
The EPA has indicated its intent to ensure E15 remains available throughout the summer driving season. The EPA’s action applies throughout the United States, except California.
California is now the only state in the US that has not approved the E15 blend, and typically has the highest average gasoline prices nationwide.
To address the situation, Governor Gavin Newsom earlier this year issued a letter to the California Air Resources Board (CARB) requesting completion of the study required to adopt E15 in California.
According to a UC Berkeley and US Naval Academy study, the adoption of a 15 percent ethanol blend in California is projected to create more than 600 million gallons (≈ 2.27 billion litres) per annum of new biofuels demand and save consumers an estimated twenty cents per gallon, or approximately US$2.7 billion at the pump each year.
Californians would also benefit from reduced greenhouse gas (GHG) emissions from the increased use of ethanol and reduced exposure to benzene and other carcinogens in gasoline.
