Global Demand for Fuel Ethanol Through 2030

Cindy Zimmerman

A new report from USDA’s Economic Research Service shows consumption of ethanol as a transportation fuel has seen significant growth in the last couple of decades in the United States, and growth is expected to continue through 2030.

Global Demand for Fuel Ethanol Through 2030 summarizes the current U.S. and international fuel ethanol markets and provides projections of future fuel ethanol demand in these markets.

Here are a few of the report findings:

For 2021 to 2030, the U.S. Department of Energy’s Energy Information Administration (EIA) estimates and projections indicate U.S. consumption of ethanol in motor gasoline and E85 is expected to increase between 196 million gallons (1.4 percent) and 1.4 billion gallons (10.4 percent), depending on U.S. economic growth over the decade.

Though U.S. ethanol consumption has largely recovered from COVID-19 impacts, increased adoption of hybrid or electric vehicles and continued fuel efficiency gains in gasoline vehicles may decrease domestic gasoline consumption, which in turn could decrease fuel ethanol demand.

Total global demand for gasoline is expected to stagnate over the next decade, leaving changes in blend rates—domestically or abroad—as the main determinant for future changes in fuel ethanol demand.

Read the report.

Ethanol, Ethanol News, USDA