Ethanol production will increase in 2011.
The Environmental Protection Agency (EPA) announced a decision to expand the scope of its October 2010, decision to allow a 50% increase—from 10% (E10) to 15% (E15) — in the amount of ethanol permitted in gasoline.
The decision by the EPA broadens its earlier decision to allow E15 gasoline in model year 2007 or newer automobiles. The new higher ethanol-content fuel will now be available for use in millions of cars in model years 2001 to 2006 as well.
“Increased pressure on the corn supply has again pushed corn above $6.00/bu., levels not seen since 2008,” says AMI President and CEO J. Patrick Boyle. “This announcement only means that more corn will be diverted from an already thinning supply and increased pressure will be put on the meat and poultry sector which is already facing near record-high feed costs. For consumers who are concerned about food prices, this decision will further increase prices at the grocery store. Burning our food and feed as fuel is not a sustainable approach to solving this country’s long-term energy needs.”
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