After it lost its government subsidies in 2011, corn-based ethanol became even more affordable than gasoline. Dean Drake, founder and president of the Defour Group, a Michigan based consulting company says that surprises a lot of people. “Most people don’t even recognize that ethanol doesn’t have subsidies anymore,” he says. “Even more surprising – after the subsidies were lost, instead of the price of ethanol going up, ethanol producers were able to become much more efficient and ethanol became cheaper.”
Drake tells Brownfield that the price of ethanol is forecasted to continue to fall… And that, he says, is good for consumers. “This will reduce the price of regular gasoline,” he says. “It will reduce the price of blends like E-85 and also reduce the cost of driving. It also opens up the opportunity for a brand new fuel that would have the octane rating of today’s premium, but cost less than today’s regular.”
As the conversation over renewable fuels moves forward, Drake says it should focus on the benefits the fuel provides to consumers.