U.S. Sees Increase in Capacity for Biofuels

In 2023, the United States saw a 7% increase in capacity to produce biofuels, spurred by federal tax incentives, plant construction and expansion, and favorable regulatory policies, the U.S. Energy Administration recently reported.

Biofuels, such as ethanol and biodiesel, are produced by the conversion of biomass, which is recently living organic material. Biofuels are considered a renewable energy source. It is estimated that 97% of gasoline in the United States contains some ethanol. The use of ethanol in the U.S. began to accelerate  after the implementation of the Clean Air Act amendments in 1990, which were aimed at reducing carbon emissions and improving engine performance.

Fuel ethanol accounts for most of the country’s biofuel production. Typically, gasoline containing ethane is known as E10 (10% ethanol, 90% gasoline) known to produce less air pollution than 100% gasoline.

But how is the conversion of biomass to biofuels done? A common method for conversion to ethanol is called fermentation. About 94% of ethanol produced in the U.S. uses starch from corn. Manufacturers of ethanol in the U.S. use around 40% of the country’s corn crops with increasing national and global demand for ethanol. Fuel ethanol production occurs predominantly in Midwestern states such as Iowa, Nebraska, Illinois, South Dakota, Minnesota, and Indiana, which have large corn producers and capacities to produce fuel ethanol.

Ethanol that is produced from corn tends to have a positive energy balance, meaning the process of production does not require more energy than the amount in the fuel itself. The U.S. is the world’s leading ethanol producer and makes most of what is used in vehicle fuel here.

Biodiesel, another form of biofuel, is typically produced from vegetable oils, yellow grease, used cooking oils, and/or animal fats. Unlike ethanol, biodiesel is produced by a process called transesterification and is used for fueling compression-ignition engines.

Biofuels are reducing the country’s energy dependence on fossil fuels by helping in certain areas where there not presently solutions for completely replacing fossil fuels with renewable sources. Their use is growing as the development of sustainable aviation fuels is on the horizon, and Rystad Energy predicts biofuel production in the US will increase by about 53% by the middle of next decade to the equivalent of about 1.3 million gallons of oil per day in 2035.