Growth in E85 and Mid-Level Ethanol Blends a Win for Consumers

Source: By Gary Truitt, Hoosier Ag Today • Posted: Wednesday, April 13, 2016

An analysis of a recent Iowa Department of Revenue report shows the average biodiesel blend purchased in Iowa reached 11.0 percent in 2015, an increase from the 9.4 percent average blend in 2014 and a new all-time record.  While still a small percentage of overall fuel sales, Iowans also purchased a record amount of E85 and mid-level ethanol blends in 2015. Iowa motorists purchased a record 13.1 million gallons (mg) of E85 in 2015, an 8.3 percent increase over 2014, while also purchasing 8.7 mg of mid-level ethanol blends (ranging from E15 to E69), a 121.1 percent increase over 2014.

“Despite the lack of Renewable Fuel Standard (RFS) targets and the federal biodiesel blenders’ tax credit last year, biodiesel use took a step forward in 2015 increasing the average biodiesel blend purchased in the state to B11,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw.  “This shows the importance and effectiveness of forward-thinking state-level policies that encourage the use of locally-produced, cleaner-burning biodiesel.”

While sales of E10, or fuel containing 10 percent ethanol, held steady, sales of ethanol blends above E10 continued to grow. “While still making up a small portion of overall gasoline sales, we saw aggressive growth in E15 and mid-level ethanol blend sales in 2015,” Shaw added. “And despite historically low gasoline prices for a portion of the year, Iowans purchased a record amount of E85. There’s certainly more room to grow, but meaningful growth in higher ethanol blend sales is a win for the state’s economy and environment, as well as Iowans’ pocketbooks.”

On Friday, April 1, the Iowa Department of Revenue released its 2015 Retailers Fuel Gallons Annual Report. The Iowa Department of Revenue reported that it received filings representing 93.2 percent of fuel locations in Iowa. To view the full report, please click here.

Iowa is the nation’s leader in renewable fuels production.  Iowa has 43 ethanol refineries capable of producing 4 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity.  In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry.  The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

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