Emergence of Ethanol as a Key Enabler of the Transition to Low-Carbon Fuels
The U.S. clear vitality transition requires a transition to each carbon-free electrical energy and clear fuels. Ethanol has been the chief within the transfer to low-carbon fuels, as long-standing makes an attempt to develop different superior low-carbon liquid fuels (cellulosic biofuels, algae derived fuels, e-fuels, and so forth.) haven’t succeeded in reaching scalable manufacturing at an appropriate price.
Since 2005, the general carbon depth (CI) a of ethanol has decreased by 23%. Ethanol’s CI as we speak is 53.6 grams of carbon dioxide equal per megajoule of ethanol produced (gCO2e/MJ), 42% decrease than unblended gasoline. This has enabled blends of ethanol and gasoline to cut back on-road car greenhouse fuel (GHG) emissions by over 544 million tons of CO2.
This actuality leads the EFI Basis (EFIF) to current on this report a strategic roadmap to additional decarbonize the U.S. ethanol trade via a portfolio of actions that may assist it attain a objective of net-zero carbon depth by midcentury, and several other extra choices that may obtain net-negative carbon depth. The strategic roadmap will allow ethanol to play a central function in decarbonizing the transportation sector, which accounted for 29% of whole U.S. GHG emissions in 2021.
Continued decarbonization of ethanol, mixed with greater mix ranges, can complement the shift to electrification of light-duty autos—each battery electrical autos (BEVs) and plug-in hybrid electrical autos (PHEVs)—in reaching additional reductions in 2030 and past. Conversion of ethanol into aviation gas will permit blends of sustainable aviation gas (SAF) at a major scale. Additional decarbonization of the U.S. ethanol trade additionally will strengthen its contribution to the U.S. financial system, notably to the agricultural financial system.
In 2023, the USA produced 15.6 billion gallons of ethanol, making it the world’s main producer and exporter of ethanol, answerable for producing over half of the worldwide provide. The ethanol trade accounted for 28% of farm GDP, contributing $57 billion to whole U.S. GDP in 2022. The ethanol trade helps greater than 420,000 jobs.
Corn manufacturing for ethanol is a excessive value-added proposition—ethanol producers use about 30% to 40% of the U.S. corn crop, spending $38 billion, however require solely about 1.5% of whole U.S. farmland (an estimated 13.9 million acres). Since 2001, the U.S. meals crops trade general has maintained comparatively constant land use for planting whereas yields have continued to extend, indicating that corn shouldn’t be in direct competitors for acreage with different meals crops. This report doesn’t assume any enhance in corn planting for ethanol manufacturing.