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e8534  ethanol  renewable-fuel-standard 

Bob Greco

Bob Greco
Posted April 15, 2013

Sometimes a good chart is better than a whole boatload of words. The one below, from the Minnesota Department of Commerce’s Division of Energy Resources, has a lot to say about one important facet of the current debate over ethanol mandates contained in the Renewable Fuel Standard

The dotted line represents monthly numbers of service stations in Minnesota offering E85 – fuel containing up to 83 percent ethanol. The other line reflects monthly sales of E85 in Minnesota, which ranks number five in the nation in ethanol production

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ethanol  renewable-fuel-standard  refiners  e8534 

Bob Greco

Bob Greco
Posted March 18, 2013

The Renewable Fuels Association this morning tweeted:

RFA Tweet

This is in many ways progress in that it is a de facto admissionthat RIN prices are rising because we are hitting the “blend wall” on ethanol, and that a solution is needed.  Unfortunately the solution in this case is crazy.

 From Platts:

Well-known energy economist Phil Verleger several years ago first brought up the likelihood that the refining industry might need to promote the sale of E85 as a way around the Gordian knot of a 10% ethanol blendwall combined with a rising mandate for the use of renewable fuels plus a decline in gasoline demand in the US…“The obvious solution to the RIN price problem involves no EPA intervention and no regulatory action at this point,” Verleger writes. “It simply calls for boosting E85 sales.”

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