Ethanol industry sees $3.4 billion hit from COVID-19, with losses expected to double
July 16, 2020 By Rhiannon Branch Filed Under: 2020 Events, COVID-19, News, Renewable Fuels
In the biggest economic challenge since the creation of the ethanol industry, reduced fuel demand, blows to the livestock sector and other coronavirus related impacts have led to more than $3.4 billion in revenue losses for ethanol in just four months.
Scott Richman, Chief Economist for the Renewable Fuels Association did an analysis of ethanol losses from the pandemic so far.
“The impact on ethanol production and consumption exceeded 1.3 billion gallons. The usage of corn for ethanol production has been about 500 million bushels lower.”
And Richman tells Brownfield data from the Energy Information Administration and University of Missouri indicate the industry has not yet seen even half of the total losses it could endure from the pandemic.
“You’re looking at a total of about $7 billion in reduced revenues for this year and another $2 billion in 2021.”
RFA CEO Geoff Cooper says the report underscores the need for congress to deliver relief to the renewable fuels industry.
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