Despite advent of EVs, ethanol still has pathway for growth

Source: By Agri-Pulse • Posted: Wednesday, November 16, 2022

The increasing number of electric vehicles may have many in farm country concerned, but a new report out from Terrain Senior Grain Analyst Matthew Roberts says the transition to less liquid fuel consumption will be slow – perhaps slower than many expect – giving the corn and ethanol industries time to adjust and find new opportunities to grow demand.

Terrain launched week under the partnership of three leading Farm Credit Associations – American AgCredit, Farm Credit Services of America and Frontier Farm Credit – to offer analysis to their customers. “Ethanol vs. Electrons” is its first major report. California continues to drive the adoption of electric vehicles, especially with the recent mandate that all light-duty vehicles sold by 2035 be zero-emission vehicles. But decreases in ethanol demand because of that mandate could be offset by an increase in the number of flex-fuel vehicles, Roberts says. In addition, E85 could be “a demand driver for ethanol through this transition,” Roberts says.

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