As the COVID-19 pandemic and crude oil glut continue to ravage world fuel markets, U.S. ethanol sales in 2020 could fall by more than $10 billion and the industry’s contribution to gross domestic product (GDP) could drop by nearly one-third, according to a new analysis by the Renewable Fuels Association (RFA).
The economic losses stem from a “pernicious combination of steep production cuts and sharply lower prices” in response to COVID-19 stay-at-home orders and the resulting collapse in fuel consumption, according to the report.
RFA held a press conference Monday to discuss the new report, as well as other developments in the industry related to the COVID-19 response. Participating were:
Geoff Cooper, President and CEO, Renewable Fuels Association
Neil Koehler, Chairman, RFA; Co-Founder and CEO of Pacific Ethanol
Mike Jerke, CEO of Southwest Iowa Renewable Energy
Mick Henderson, General Manager, Commonwealth Agri-Energy
Scott Richman, Chief Economist, Renewable Fuels Association