ETHANOL: A Low-Cost Solution Available Today to Help Countries Meet Their COP Climate Commitments

(Renewable Fuels Association) ... One energy source—ethanol—is already cutting GHG emissions in the U.S. and many other countries. But with the right policies and commitments, ethanol and other renewable fuels can play a much larger role in future emissions reductions by the global transportation sector.

Corn-based ethanol produced in the U.S. already reduces GHG emissions 44-52% compared to gasoline. 3 Importantly, there are pathways by which fuel ethanol can achieve net-zero emissions as soon as 2040 (Figure 1).4

This white paper reviews the role that ethanol is already playing in the U.S. and demonstrates the steps that the industry is taking to decarbonize further. It concludes by exploring emerging applications for ethanol in transportation.

The use of renewable fuels under the program has resulted in cumulative savings of more than 1.2 billion metric tons of carbon dioxide-equivalent GHG emissions in the 15 years since the RFS was expanded, with corn ethanol providing the largest share of GHG reductions, according to a study by Life Cycle Associates (Figure 2). 5

These results were achieved through the consumption of E10, a blend of 10% ethanol in gasoline that has become ubiquitous over the last decade. E15, a 15% blend, is approved for use in almost all light-duty vehicles that are currently on the road, and consumption has expanded rapidly in recent years.6 Full adoption of E15 would provide additional GHG savings of roughly 35 million metric tons annually.

The Department of Energy’s Argonne National Laboratory, which developed the “gold standard” life cycle analysis model, estimates that ethanol reduces GHG emissions by 44-52% compared to gasoline. According to Argonne researchers, the carbon intensity of corn ethanol fell 23% from 2005 to 2019, mainly as a result of increased corn and ethanol yields and decreased energy usage in ethanol processing.10

RFA is demonstrating the potential of a flex-fuel plug-in hybrid electric vehicle. RFA purchased a new 2022 Ford Escape PHEV and installed a flex-fuel conversion kit, allowing it to run on any ethanol blend up to E85. It offers better refueling times, more refueling locations, longer vehicle range, and a lower purchase price than a battery electric vehicle. And, in some cases, E85 has a lower carbon intensity than pure electric.13

Additionally, there are emerging applications for ethanol in hard-to-electrify areas of the transportation sector, notably heavy-duty trucking and airline travel. Technology that allows diesel engines to run exclusively on ethanol is now being tested in the field. It offers the potential to reduce fuel costs and emissions of GHGs and pollutants. 14

Another very promising application is sustainable aviation fuel produced from ethanol. The Biden administration has issued a Sustainable Aviation Fuel Grand Challenge, and the Inflation Reduction Act contains substantial incentives for SAF.15 Both require a minimum 50% reduction in GHG emissions. Since ethanol is available at scale, it has received considerable attention as a feedstock for SAF.

As countries gather for COP28, they should embrace ethanol and other renewable fuels as a proven solution for reducing emissions. With the right policies and commitments, biofuels can play a much larger role in decarbonizing transportation globally. READ MORE