Adam Monroe, president of Novozymes’ North America, a leading maker of enzymes used to manufacture biofuels said “having grown up a great deal over the past decade,” the U.S. ethanol producers do not need the federal ethanol tax credit (VEETC) next year, according to an Associated Press report. “It can now stand on its own two feet and compete,” Monroe added. However, there is a need for the government to continue to support the biofuels industry through policies like the renewable fuels standard, he said.
The Renewable Fuels Association (RFA) says the industry is now producing about 13.7 billion gallons of ethanol at more than 200 plants nationwide. That quantity of ethanol is almost 10 percent of the 138 billion gallons of gas that were used in the country last year. RFA’s Matt Hartwig said the industry is prepared for the end of the 45 cents per gallon VEETC for ethanol. “Right now, ethanol is very cost-competitive with gasoline without the tax credits,” Hartwig explained.
