USDA says export demand only remaining driver for increased ethanol investment

In Washington, although the USDA says the country’s ethanol plants were running at near full capacity in 2016, there is little or no demand for additional plants due to increased vehicle efficiency that has led to lower gasoline consumption and therefore lower ethanol consumption as a result of the 10% “blend wall.” Instead, it says increased ethanol demand that would justify additional investment in ethanol plants is limited by international demand which is in turn hindered by low gasoline prices since 2014.