Study: Ethanol Can Move to Net-Zero Moniz: Ethanol's Zero-Carbon Future Starts With Currently Available Paths

September 23, 2024

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by Todd Neeley (Ethanol Producer Magazine) Preliminary results of a new study released by the Energy Futures Initiative Foundation on Friday show corn ethanol has the potential to achieve near-net-zero carbon emissions by 2035 and net-zero by 2050, outlining the pathways to achieve that goal.

The potential for corn ethanol to be a sustainable aviation fuel feedstock hinges on the ethanol industry's ability to further reduce emissions.

The preliminary results released during a Growth Energy press conference show what the foundation said are nine currently available and "affordable" measures that taken together could get corn ethanol to net-zero or even negative emissions by 2050.

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"Today, ethanol, even with its significantly improved carbon performance with respect to gasoline, would not qualify for the tax credits available for sustainable aviation fuel," said Ernest Moniz, former U.S. secretary of energy and current CEO of the foundation.

"As you know, a market that is really eager to get low-carbon fuels is somewhat less price sensitive than some other areas, but very, very hard to decarbonize. Ethanol provides an opportunity here, as well, and with the decarbonization of ethanol, then we will be able to draw upon the federal tax credits and in many, many states, state credits as well."

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The research sponsored by Growth Energy included months of analyzing the carbon-intensity reduction potential, feasibility and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S.

The full study results are set to be unveiled at the Clinton Global Initiative annual summit during Climate Week NYC ....

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The study also identified 12 other measures that are not yet viable to adopt but could make deeper cuts to carbon emissions down the road.

That includes renewable natural gas and blue hydrogen use in combined heat and power; the use of renewable diesel in farm equipment, including corn and ethanol transfer; fuel switching to RNG; the use of blue ammonia fertilizers; thermal energy generation from carbon capture; the use of green hydrogen in power and heat generation; and the use of green ammonia fertilizers.

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(Growth Energy CEO Emily) Skor said the 45Z credit would drive many of the potential carbon-cutting measures identified in the foundation's study.

"The private sector doesn't know what the rules of the road are going to be, and so they need the answers, they need that certainty," she said.

"And then we also need more time. Three years is the current duration of 45Z. We certainly would like to see that extended to give us time and a bit of a glide path to be able to do the capital investment and then reap the rewards down the road."

Moniz said the move away from liquid fuels toward electric-vehicle technologies doesn't entirely make sense. Though the electricity sector will continue to be an important part of the future, he said liquid fuels will have a place for some time to come.

"Electric vehicles will probably continue to get market share, but the reality is the transportation sector, whether it's light-duty vehicles or large airplanes, long-distance airplanes, liquid fuels with their very high energy densities will be essential," Moniz said.

"Liquid hydrogen is often thought of as the gold standard of a high-energy density, let's call it fuel, at least loosely. Well, the reality is the energy density per liter of gasoline or ethanol is a multiple of that liquid hydrogen. And that's an indicator as to why I say that in these sectors, liquid fuels are essential." READ MORE

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EFIF Study Showcases Ethanol Industry’s Central Role in Decarbonizing the Transportation Sector (Growth Energy)
A Strategic Roadmap for Decarbonizing the U.S. Ethanol Industry (Energy Futures Initiative Foundation)

Excerpt from Growth Energy: The Energy Futures Initiative Foundation (EFIF), led by Ernest J. Moniz, the 13th U.S. Secretary of Energy, today released a new study detailing pathways to further decarbonize ethanol to reach near net-zero carbon intensity by 2035 and negative carbon intensity by 2050.

“Low-carbon liquid fuels will be essential for decarbonizing transportation, and ethanol has been the leader in the move to affordable low-carbon fuels,” said Ernest J. Moniz, the 13th Secretary of Energy and EFIF President and CEO. “Through this research, we identified a portfolio of relatively low-cost solutions that can take ethanol close to a net zero fuel by 2035. In addition to being the most effective, scalable, and affordable low-carbon fuel today for vehicles, decarbonized ethanol also has the potential to help provide Sustainable Aviation Fuel. This market can help sustain the ethanol supply chain as a major driver of the rural economy.”

The EFIF research found nine currently available and affordable measures, which together could lower the carbon intensity (CI) score of renewable vehicle fuels to near-net-zero by 2035 and to net-zero or negative emissions by 2050. Effective measures included:

Carbon Capture, Utilization, and Storage (CCUS) of the fermentation process;
Low carbon energy use at biorefineries including using combined heat and power generation with biomass and using carbon-free electricity;
Climate smart agriculture practices, including planting cover crops, no-till farming, using enhanced efficiency fertilizers, and fertilizer management practices.

This chart from the EFIF research shows how ethanol can become net zero and even net negative.

Image caption: The EFIF report shows the impact of various measures for reducing the carbon intensity (CI) of ethanol to reach net-to-negative carbon emissions by 2050. At left, ethanol CI decreases from 53.6 gCO2e/MJ today to 6.2 gCO2e/MJ by 2035 and to net-zero or negative emissions by 2050. Copyright © 2024 EFI Foundation (EFIF). All rights reserved.

To accelerate adoption of these practices, the report outlines policy recommendations such as a call for timely guidance on the 45Z clean fuels production tax credit slated to take effect in 2025 under the Inflation Reduction Act.

The research also looks at the potential of lower-carbon ethanol to help reduce emissions for on-road fuels as well as to close the “emissions gap” in hard-to-abate sectors like aviation.

The research, sponsored by Growth Energy, included months of research by EFIF staff to analyze the carbon intensity reduction potential, feasibility, and cost-effectiveness of a total of 21 different measures taking place on farms and at biorefineries across the U.S. All of the nine initiatives ultimately recommended are currently in use at select facilities and farms.

“EFIF’s recommendations are as practical as they are robust, reflecting innovations our members and their farm partners are already embracing,” said Emily Skor, CEO of Growth Energy, the largest ethanol trade association in the country. “We are proud of our industry’s progress to date and look forward to seeing biofuels continue to deliver on ambitious carbon reduction goals.”

The full EFIF study will be released in conjunction with the Clinton Global Initiative Annual Summit during Climate Week NYC.

About the EFI Foundation:

The EFI Foundation (EFIF) is a Washington, D.C.-based 501(c)(3) nonprofit organization dedicated to educating the public on ways to harness the power of technology and policy innovation to accelerate the clean energy transition. The EFI Foundation builds on the work of the Energy Futures Initiative, established in 2017 by Ernest J. Moniz, the 13th U.S. Secretary of Energy. READ MORE