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US ethanol industry sets new records 2017 – new EIA data confirms

Data released March 1, 2018, by the US Energy Information Administration (EIA) confirms that the US ethanol industry produced a record amount of fuel ethanol in 2017. According to EIA, the industry produced 15.84 billion US gallons (≈ 59.96 billion litres) of ethanol, up 3 percent from the 2016 total and a four-fold increase over the 3.91 billion gallons (≈ 14.8 billion litres) produced in 2005 when the original Renewable Fuel Standard (RFS) was adopted.

Data from the US Energy Information Administration (EIA) confirms that the US ethanol industry produced a record 15.84 billion US gallons (≈ 59.96 billion litres) of fuel ethanol in 2017. This represents a four-fold increase since 2005 when the original Renewable Fuel Standard (RFS) was adopted (graphic courtesy RFA).

The EIA data also preliminarily indicated record domestic ethanol blending, with 14.4 billion gallons (≈ 54.51 billion litres) blended into 142.9 billion gallons (≈ 540.93 billion litres) of finished gasoline, equating to a record average blend rate of 10.08 percent.

At this point, the so-called ‘blend wall’ is little more than a speed bump on the road to greater consumer choice, lower pump prices, and cleaner air. Even though 2017 gasoline demand was down a bit from the record level seen in 2016, domestic ethanol consumption was up. That means consumption of blends like E15 and flex fuels like E85 is continuing to rapidly expand across the country, said Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA).

While 2017 data for individual state ethanol blend rates are not yet available, data recently released by EIA and compiled by RFA showed that 30 states and the District of Columbia had average inclusion rates above 10.0 percent in 2016.

Today, some 1 300 retail stations are offering E15 and more than 4 000 stations are selling flex fuels like E85 to drivers of flex-fuel vehicles (FFVs). Clearly, the RFS is working as intended to transform our transportation fuel market and drive expanded use of domestically produced, high octane ethanol, said Dinneen.

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