Aemetis to benefit from the U.S. EPA’s approval of 15% ethanol blend
- Consumers are expected to save up to $0.20 per gallon at the pump
Aemetis Inc., a diversified global renewable natural gas and biofuels company, announced today that the U.S. Environmental Protection Agency (EPA) issued a waiver allowing a 15% blend of ethanol (E15) to continue to be sold after May 1st which will benefit the company through increased demand and sales of the renewable fuel nationwide. The average blend of ethanol in the U.S. in 2024 was 10.4% and 14.2 Bgal. The adoption of E15 allows up to a 50% increase in the market for ethanol in the U.S.
“The EPA’s action allowing nationwide E15 sales to continue is a significant step toward increasing the demand for ethanol and has broad support for permanent approval from the President, as well as numerous members of Congress,” stated Eric McAfee, Chairman and CEO of Aemetis. “Permanent national approval of E15 would allow the demand for ethanol to grow as consumers nationwide benefit from lower-cost, domestic, renewable fuel that lowers the price of gasoline and supports rural communities with good jobs throughout the country.”
The EPA has indicated its intent to ensure that E15 remains available throughout the summer driving season. The EPA’s action applies throughout the United States, except California. The E15 blend is expected to help American drivers save money at the pump, reduce carbon emissions, strengthen rural economies, and enhance U.S. energy independence, according to the Renewable Fuels Association.
California is now the only state in the U.S. that has not approved the E15 blend and typically has the highest average gasoline prices nationwide. To address the situation, Governor Gavin Newsom earlier this year issued a letter to the California Air and Resources Board (CARB) requesting completion of the study required to adopt E15 in California.
The adoption of a 15% ethanol blend in California is projected to create more than 600 MMgpy of new biofuels demand and save consumers an estimated $0.20 per gallon, or approximately $2.7 B at the pump each year, according to a UC Berkeley and U.S. Naval Academy study. Californians would also benefit from reduced greenhouse gas emissions from the increased use of ethanol, and reduced exposure to benzene and other carcinogens in gasoline.
Senate Bill 2707, the “Nationwide Consumer and Fuel Retailer Choice Act,” was recently introduced into the U.S. Congress by 14 senators. This bill proposes the permanent sale of year-round E15 throughout the United States, except in states such as California that have their own fuel regulations. The E15 blend is approved for use in more than 95% of vehicles on the road today, according to the EPA.
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