A new study commissioned by the National Corn Growers Association projects nationwide year-round adoption of E15 gasoline could generate significant economic benefits for corn producers, ethanol manufacturers and consumers while expanding domestic fuel demand.

The analysis examined the long-term economic impacts of permanently allowing year-round sales of E15, a gasoline blend containing 15% ethanol. The organization said the study found broader E15 adoption would strengthen corn demand, lower fuel prices and increase economic activity across rural communities and the biofuels sector.

Higher Corn Demand and Ethanol Production

The study estimated nationwide year-round E15 sales could increase annual corn demand by approximately 2.3 billion bushels by 2030. According to NCGA, the increased ethanol consumption would support stronger commodity prices and improve profitability for corn growers facing multiple years of difficult market conditions.

Researchers also projected ethanol production could increase by 8.2 billion gallons annually under expanded E15 adoption, creating additional demand opportunities for ethanol plants and processors throughout the United States.

The projected increase in ethanol output would contribute to expanded processing activity and support employment across agricultural and biofuel supply chains, according to the analysis.

Consumer Fuel Savings

The study found E15 adoption could reduce gasoline prices for consumers because ethanol generally costs less than petroleum-based gasoline blendstocks.

The analysis projected cumulative consumer fuel savings could reach $20.6 billion through 2030 if E15 sales become permanently available nationwide throughout the year.

NCGA officials said the findings reinforce arguments that expanded ethanol blending can provide both agricultural and consumer economic benefits.

Rural Economic Impacts

The study also projected broader economic gains for rural communities tied to increased grain demand and ethanol production activity.

NCGA said expanded E15 use could contribute approximately $66.3 billion in additional gross domestic product and support more than 188,000 jobs by 2030.

The organization said economic gains would extend beyond ethanol plants and corn farms into transportation, grain handling, equipment manufacturing and other agricultural industries.

Regulatory Certainty Remains Central Issue

NCGA officials emphasized that permanent nationwide approval for year-round E15 sales remains important for providing long-term certainty to fuel retailers, ethanol producers and grain markets.

The organization has continued advocating for federal legislation that would eliminate seasonal restrictions limiting E15 sales during summer months in many parts of the country.

The study comes as legislation that would permanently authorize year-round E15 sales nationwide passes the House and moves to the Senate.

Source: National Corn Growers Association, "NCGA Study Reveals Net Benefit from Year-Round E15 Adoption"