Report Shows High Corn Prices Will Limit Ethanol Use, Raise Costs

PRWeb
Washington, DC (PRWEB) May 05, 2011

An Energy Policy Research Foundation, Inc. (EPRINC) report released on April 28, 2011 found that high and volatile corn prices will limit the success of a renewed push to expand access to ethanol via E15 and additional E85 fueling stations. The report also found that absent a mandate, blender's credit, and tariff protection ethanol would have a market of nearly 400,000 barrels per day, approximately half of today's consumption, which suggests that the real cost of the blender's credit is significantly higher than $0.45 per gallon. The study concludes that as the volumetric mandate takes ethanol blending past 10% of the gasoline pool, gasoline consumers and producers will face higher costs.

Read more