A new economic analysis shows that a statewide shift to E15, a motor fuel blended with 15% renewable biofuel, could add billions to Ohio’s economy, drive new grain demand for farmers and deliver economic benefits across the state. The study was conducted by Agriculture and Biofuels Consulting (ABF Economics), which examined the economic impact of expanding E15 statewide in 12 states across the Midwest that represent 88% of the country’s ethanol production and are responsible for nearly a quarter of U.S. motor gasoline use.
“E15 is the single biggest opportunity to grow the rural economy, increase fuel savings and immediately replace oil with more homegrown renewable energy,” said Joshua Shields, Senior Vice President of Government Affairs and Communications at POET. “Family farmers and fuel consumers have the most to gain by shifting to E15, but there are massive economic benefits across the board, especially in America’s Heartland where biofuels are made.”
The report shows that full statewide adoption of E15 across Ohio would add:
• $649.7 million in GDP to the state’s economy
• 84 million bushels of new grain demand with a farm gate value of $328.4 million
• $231.4 million to household income statewide
• $57.2 million to state and local tax revenues.
“Everyone should have the freedom to fuel up with E15,” Shields said. “Shifting to E15 is without question the fastest way to boost fuel savings and cut emissions from the most vehicles. That’s why so many states are looking at ways to ensure greater access to E15 at the pump. It’s one of the few solutions that can provide widespread benefits to an entire state, in both rural and urban communities.”
E15 was approved by the EPA in 2011 for all light-duty vehicles Model Year 2001 and newer and all Flex Fuel vehicles. Since then, Americans have driven more than 20 billion miles on E15. Today, the nation’s 245 million E15-compatible cars, trucks and SUVs represent more than 97% of vehicle miles traveled. Most automakers – including all of the Big Three – now explicitly warranty E15 for all new liquid fuel vehicle models.
To view ABF Economics’ report on the potential economic benefits of E15 in Ohio, please visit POET.com/OhioE15.