USGC wants to share octane advantage of ethanol with world markets

November 4, 2018 |

In Washington, D.C., the U.S. Grains Council is encouraging countries without the ability to produce their own feedstock to develop biofuels policies that include a role for ethanol imports in their latest publication that discusses the blending octane ratings of various gasoline components.

USGC wants countries around the world to look to ethanol when their government and industries think about octane. Depending on the octane of the base gasoline in the fuel, refiners use additives to boost octane levels to enhance engine performance. With one of the highest octane ratings of any fuel additive at 113 AKI (anti-knock index, which measures the fuel’s ability to resist knocking during combustion), ethanol provides economic benefits by boosting octane ratings of subgrade gasoline.

From a straight price perspective, U.S. ethanol is cheaper than other components of gasoline – including MTBE and aromatics – and in some cases, gasoline itself. Using ethanol also reduces refining costs, allowing use of a sub-grade of gasoline, adding more savings. Octane value and cost savings are especially important in price-sensitive markets where fuel demand is more elastic.

 

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