• 5 MIN READ

State of Play: Biofuels

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: 

Contact us for more information about the Industrial Innovation Initiative and how you can join this growing effort. 

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.