The ethanol industry is reeling from a decision by the US House of Representatives to vote against the expansion of ethanol use in road transport fuels.
The House voted to block the the country’s Environmental Protection Agency (EPA) from rising the cap on ethanol use from 10 to 15 per cent.
In a further hit to the industry, the House also voted in favour of stopping funding to the Agency to pay for special pumps needed to dispense the fuel at gas stations.
The use of ethanol in the States has been controversial, with environmentalists questioning its ‘green’ fuel status and motor industry concerned that higher ethanol blend fuels could be unsuitable for older engine cars, potentially causing damage over long-term use.
Furthermore, ethanol is an expensive fuel to produce and it seems that the decision to block the use of higher blend fuels and cut EPA funding are all part of budgetary cutbacks.
Greg Krissek, director of governmental affairs for ethanol plant firm. ICM told US newspaper, The Wichita Eagle, that the 15 percent ethanol limit and the blender pumps "are the kind of provisions that we need to help be competitive with the long-standing oil complex".
Adding that those who oppose higher blend ethanol fuel, "want to keep testing [E15] for testings sake".
