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Midwest corn groups invest in ethanol infrastructure

Corn groups are incentivizing California fuel retailers to add ethanol infrastructure.  

Corn checkoffs of Missouri, Nebraska and Kansas are providing California fuel retailers nearly $1.3 million over the next year to implement E85 pumps to increase ethanol demand. 

Missouri Corn Merchandising Council Chairman Jay Schutte tells Brownfield California’s low carbon fuel standard adds cost to gasoline and increases demand for higher ethanol blends, increasing its demand. 

“When we were there in California, we went to a filling station in San Diego; regular gasoline was $4.15 a gallon, E85 was $1.75 a gallon,” he said.

Schutte says California’s ethanol use is on track to increase by 20 percent this year. The eastern Missouri grower says continued ethanol demand growth will boost corn’s bottom line. 

“I live 10 miles away from an ethanol plant, a POET plant in Laddonia, Missouri,” Schutte said. “If they can find more markets for their ethanol, [it] means they’re going to find more markets for my corn.”

John Greer with the Nebraska Corn Board said one California station alone would use about 50,000 bushels of corn in the form of ethanol a year.