The Industrial Innovation Initiative’s September 2025 plenary featured the Renewable Fuels Association (RFA), a national leader in advancing sustainable, renewable fuels and bioproducts since 1981. Headquartered in St. Louis, RFA represents a broad network of US ethanol producers, from small cooperatives to corporate models, from coast to coast. Thank you to RFA for sharing these valuable insights.
Here are a few high-level takeaways from the conversation:
History of Biofuels: US biofuels have experienced significant growth since the passage of the first Renewable Fuel Standard in 2005. In 2024, ethanol production reached a record high of 16.1 billion gallons. In addition to ethanol, each bushel of corn also yields high-protein livestock feed, distillers’ oil, and biogenic CO2. The top-producing corn states, Iowa, Nebraska, Illinois, Minnesota, and South Dakota, account for 66 percent of the national ethanol capacity, with ethanol plants strategically co-located near corn fields. Argonne National Laboratory, through the Department of Energy, estimates that using a gallon of corn ethanol provides between a 44 and 52 percent reduction in greenhouse gases compared to a standard gallon of gasoline.
Economic Impact & Increased Efficiency: Ethanol production generated $53 billion in Gross Domestic Product in 2024, supporting nearly 56,000 direct jobs and over 258,000 indirect and induced jobs. The sector has become more efficient over time, both through improvements at dry mill ethanol facilities and by developing ways to produce more ethanol with the same amount of corn. Corn farmers are also more efficient, evidenced by increasing crop yields and surpluses. One downside of increased efficiency is lower corn prices for US farmers. To address this, RFA is seeking new market opportunities to drive corn demand and reduce government assistance.
Market Innovation: Permitting year-round use of E-15 (a blend of 15 percent ethanol and 85 percent gasoline) is a near-term solution to quickly increase corn demand. Expanding global exports of renewable fuels is another promising opportunity. Longer-term markets could include diesel replacement, maritime fuels, and renewable chemicals and products. Notably, any product made at a petrochemical facility can be made at a biochemical facility using ethanol as a base feedstock. This opens the door for sustainable alternatives in a range of commercial products, including plastics.
45Z Production Tax Credit: 45Z is a performance-based production tax credit that ranges from $0.10 to $1.00 per gallon (with a 5x bonus or penalty related to prevailing wage) for fuels with low carbon intensity. This tiered structure gives ethanol producers a strong financial incentive to reduce their carbon intensity by deploying heat pumps, thermal batteries, and other electrified technologies.
A common misconception is that the ethanol industry is subsidized. Prior to the Inflation Reduction Act creating 45Z in 2022, this had not been the case since 2011, when a blender’s credit expired. 45Z, which was extended in 2025 through the One Big Beautiful Bill Act, is set to expire at the end of 2029. A key component is the much-anticipated Treasury rulemaking, which will connect the proposed guidance to the credit, currently issued only as a notice of intent.
Federal Opportunities:
- Advocating for the Treasury to prioritize rulemaking for 45Z
- Legislative solutions for year-round E-15 (such as S. 593 and H. 1346: Nationwide Consumer & Fuel Retailer Choice Act)
- Maintaining the integrity of the Renewable Fuel Standard
- Fair Trade opportunities for US ethanol
- Expanding the use of US ethanol through higher blends
Check out some of RFA’s recent work below:
- National Ethanol Conference in Orlando, FL (February 24-26, 2025)
- New Study: Unrestricted Sales of E15 Would Fuel the Economy
Contact us for more information about the Industrial Innovation Initiative and how you can join this growing effort.