September 06, 2019 | The Bismark Tribune

Oil Refinery Exemptions Reduce Ethanol Demand by 1.4B Gallons

Ethanol industry struggles under current policies

The Bismark Tribune reports the ethanol industry is struggling under current policies. Federal policy is reducing demand for ethanol which will ultimately hurt farmers, said Jeff Zueger, CEO of Midwest AgEnergy, which owns and operates Dakota Spirit AgEnergy.

"It is an industry-wide problem that can affect the local farmer," Zueger said. "It is becoming more and more of a problem."

At the heart of the problem are exemptions being granted for some refineries, eliminating their need to meet the Renewable Fuel Act, according to Scott Richman, chief economist for the Renewable Fuel Association, the national trade group of the biofuels industry.

Zueger said the latest round of exemptions included 31 oil refineries and reduced demand for ethanol by 1.4 billion gallons.

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