On the first day of National Clean Energy Week, Growth Energy CEO Emily Skor sat down with FGS Global Partner Anthony Reed for an armchair discussion. As Skor recounted, Growth Energy is the largest biofuel trade association in the country, with a network of 130 companies, including John Deere and BASF, and nearly 100 biorefineries, such as ADM, Cargill, and POET. These operations span 33 states, with a particular presence in the Midwest. “We are really the engine of the rural economy,” Skor said. “It goes back to the fact that we help keep small communities going and thriving.”
The conversation emphasized the enduring popularity and legislative success of biofuels in the U.S., with the industry offering value to both political parties. On the one hand, they provide low-carbon energy and decarbonized modes of transportation. On the other, they produce affordable and accessible fuel, contributing to both energy independence and dominance. This bipartisan support was most evident in the budget reconciliation bill that was signed into law earlier this year. Although it cut $545 billion in tax credits that originated in the prior administration’s Inflation Reduction Act, Congress extended and even enhanced the technology-neutral clean fuel production credit, Section 45Z.
Biofuels have emerged as a point of alignment between the Trump administration and the clean energy industry. For example, during President Trump’s first term, the Environmental Protection Agency (EPA) increased access to higher blends of ethanol. In this term, the president issued an executive order on day one directing the EPA to consider higher-ethanol blend E15. “So there’s a very strong connection to some of the real big priorities that are really important to this administration,” Skor explained.
Skor stated that this support stems from both the President’s loyalty to the U.S. farmer and his emphasis on ‘America First.’ “The administration is making these announcements through the framework of US agriculture and maintaining strong biofuel demand,” she summarized.
Photo Courtesy Growth Energy
Meanwhile, the industry is seeing significant opportunities arise in both the short and long term. On the near horizon, argued Skor, the continued use of ethanol in cars and trucks in the U.S. and abroad is a particular highlight. Domestically, this has recently been spurred by the highest-volume requirements ever proposed by the EPA under the Renewable Fuel Standard. Even California, until now the last state to cap the amount of ethanol that can be blended with gasoline at 10 percent, saw its Senate vote unanimously to allow the sale of E15. Internationally, Canada, Brazil, India, Japan, and Vietnam are also increasing their goals and standards regarding ethanol, providing a market opportunity.
In the longer term, meanwhile, Skor pointed out that a significant amount of innovation is emerging in this space. For example, sustainable aviation fuel has the potential to transform the aviation industry. At the same time, ethanol can replace bunker fuel in the maritime sector and replace diesel in long-haul trucking. In these nascent markets, Skor commented, “We still have to be able to do, for some of them, proof of concept. We’ve got to get regulations in place. We’ve got to be able to produce a commercial scale and get the economics in line. But that’s the blue sky potential.” As these technologies further decarbonize through carbon capture, the application of climate-smart agricultural techniques, and the installation of more clean energy sources, the carbon intensity of these fuels will also continue to decrease.
