Laws enacted to reduce carbon levels in the environment have created an opportunity for corn growers who supply ethanol manufacturers.

Ron Alverson, a crop producer representing the American Coalition for Ethanol’s board of directors and the Dakota Ethanol board of directors, says that the performance of the California Low Carbon Fuel Standard from 2011 to 2019 shows a continuing trend of using agricultural-based alternatives for transportation fuels.

“Almost all has been corn ethanol; it wasn’t Brazilian cane sugar,” he says, adding that 25% was comprised of other biofuel sources.

Alverson, speaking at the recent summer crop tour at Catalpa Farms in Canandaigua, N.Y., says that corn alone has provided nearly half of the total carbon credit value of LCFS. The total value of carbon credits generated by biofuels in California — corn ethanol, sorghum ethanol, corn oil biodiesel and corn renewable diesel — assuming a price of $140 per ton of carbon dioxide, is $3.5 billion.

Renewable diesel from tallow, sugarcane, waste wheat, molasses, soy and sorghum are much smaller contributors. Fuel demand also plays a role in a producer’s ability to leverage an opportunity in biofuels. Since fewer people have been driving because of working at home and reducing social outings, “fuel consumption has been low during COVID,” Alverson says.

But that may not last for long. As the vaccine rollout continues, more people are returning to their pre-pandemic transportation patterns. And the increased use of delivery services — from food to household goods — has helped stabilize fuel consumption. Provided these patterns continue, and pre-pandemic driving patterns return, increased fuel consumption could result.

“Grid-independent hybrid electric vehicles are a way for biofuels to compete in low-carbon markets,” Alverson says, noting the Toyota flex-fuel hybrid prototype unveiled in Brazil as an example. “The differences between summer and winter is efficiency for electrical vehicles goes down.”

That could make these vehicles less efficient in Northern climates.

Alverson says that fuel farmers use in production is “a really small piece of this.” But land-use change is “a pretty big piece of the pie” in relation to biofuel production.

“We can make a lot of progress in our carbon use,” he says.

Low-carbon ethanol manufacturing methods include limited drying of distillers grains, combined heat and power, corn kernel fiber fermentation, on-site wind-powered electrical generation, and CO₂ capture and sequestration from fermentation.

“This isn’t pie-in-the-sky stuff; thousands of guys are doing it,” Alverson says. “They’re just not getting credit. Fermentation is a hot topic. There are lots of projects going on.”

Producers can generate an additional revenue stream by participating in programs that pay farmers for carbon credits.

Opportunities in New York?

Alverson offered highlights of the proposed New York low-carbon fuel standard that’s currently being debated in the State Assembly:

• Technology-neutral; low-carbon fuels get the credits.

• Employs the latest U.S. Department of Energy GREET model.

• Aggressive greenhouse gas reduction schedule, possibly 30% in 10 years.

• Includes upstream (corn production) greenhouse gas reduction credits.

But it’s not just New York. Changes in energy laws are underway in numerous states.

“A lot are coalescing around the California GREET model,” Alverson says. “We want to include incentives for farmers to pay them for greenhouse gas reductions.”

Alverson encourages farmers to become part of the process of seeing this happen because they can help shape the laws to make them better for the agriculture community.

“Get involved in the state’s process,” he says. “The credit in California can be as high as $180 per acre.”

Sergeant writes from central New York.