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2011 Ends – No E15, 2012 Begins And We Are Hitting The Blending Wall

January 2, 2012

As we say goodbye to 2011 it is obvious that E15 has done nothing to prevent the blending wall.  Heck, “E15 is not registered with  EPA” so it cannot be sold yet, and none of the many states, including California that do not allow E15 to be sold for use in non flex-fuel vehicles, have changed their laws.

As we start 2012, the complete idiocy of the federal RFS mandate of EISA 2007 gets more absurd every day.

Actually the EIA suspects that we are hitting the blending wall right now, today, as outlined here.

The most absurd and outrageous result of the federal RFS mandate is that the price of your gasoline is rising because the gasoline producers must pay for “waiver credits” for cellulosic ethanol that is mandated but cannot be produced as pointed out by this article and this article.  What is ironic is that if 500 million gallons of cellulosic ethanol could be produced this year, as mandated by EISA 2007, at any price, say $100 / gallon, the gasoline producers would have to buy it and blend it.

So here is the looming debacle for the federal RFS mandate.  We will hit the blending wall this year and by the end of the year there will be hundreds of millions of gallons of ethanol with no gasoline to put it in, and next year there will be billions of gallons of ethanol with nowhere to blend it and on and on until 2022 when there will be tens of billions of gallons of ethanol with nowhere to put it.  Are the gasoline producers going to have to pay for “waiver credits” for all of that unusable ethanol?

So tell me again how ethanol is reducing our dependence on foreign oil and “reducing the cost of gasoline” as we were promised here in Oregon when the mandatory E10 law was being debated in the Oregon legislature.

One comment

  1. Sorry left comment on OCT 2011 archive



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