Biofuel supply to remain at 15 billion gallons in 2018

Al-Corn Clean Fuel

As part of the Renewable Fuel Standard, the Environmental Protection Agency (EPA) released proposed 2018 Renewable Volume Obligations (RVO) yesterday, calling for maintaining the same level of conventional biofuels as 2017.

The minimum amount of renewable fuels that must be supplied to the market in 2018 was 19.24 billion gallons. Conventional biofuels will remain at 15 billion gallons of that total next year. Advanced and cellulosic biofuels, often made from dried distillers grains (DDGS) and corn residue, will decline slightly from 4.28 billion gallons to 4.24 billion in 2018.

“We are happy to see the EPA is continuing to advance the renewable fuel standard by ensuring conventional ethanol production continues,” said Mitch Coulter, marketing and biofuels director with the Minnesota Corn Growers Association. “This proposal continues our path to affordable fuel choices that not only lead to a cleaner environment, but also strengthen rural communities and help farmers facing tough economic times.”

MCGA will continue to work with the EPA and government officials to stress the benefits of increased advanced biofuel supply, which would increase the demand for DDGS. DDGS are a secondary product of ethanol production from grain and a strong potential market for the nation’s corn supply.

In its statement, the EPA said they are on track to meet the Nov. 30 deadline to make this RVO proposal final.

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