
4. Ethanol producers pivots prevent p**s poor performance
If you weren’t alarmed by the Biden Administration’s direction on domestically produced ethanol, you should be. Mandates are too low for 2021 and 2022, and though they are supposed to recover by 2023, how is ethanol going to succeed in an “electrify everything” environment? Well, maybe there are answers for bolstering demand so that it doesn’t drop. But, ethanol producers want to grow. And so do corn farmers? The answer lies in diversification. Make SAF from ethanol, make chemicals from corn, make RNG from crop wastes and processing byproduct streams. Capture carbon to add value when delivering to markets with low-carbon standards. Ethanol producers can’t focus on niche applications, they need big ones, and fuels and chemicals are the biggest markets, heat and power could be huge if made at the refinery from deliveries brought by growers. So, let’s here it: 2-4-6-8-variegate!
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