Monday, May 4, 2020
SIOUX FALLS, SD (May 4) – POET applauds the US Department of Agriculture’s (USDA) announcement of $100 million for the highly anticipated Higher Blends Infrastructure Incentive Program (HBIIP).
This support for higher biofuel blends underscores President Trump and Agriculture Secretary Perdue’s understanding that more ethanol in our nation’s gasoline supply is best solution to grow markets for our nations farmers.
The agriculture industry has been highly challenged in recent years by low prices, historic weather conditions and unfavorable trade dynamics. With COVID-19 creating additional, unprecedented hurdles, the HBIIP will help provide a long-term boost for ag markets.
“We commend President Trump and Secretary Perdue for recognizing the critical role that biofuels play in driving our agricultural economy and cleaning up the air in our nation’s cities. This program takes an important first step in expanding market access to affordable, American-made biofuels across the nation, resulting in additional clean fuel options for motorists and economic opportunities for rural America - a true win for everyone,” said POET Founder and CEO Jeff Broin.
Higher blends, like E15, have the potential to increase ethanol consumption by 7 billion gallons each year, increasing corn demand by 2 billion bushels annually. “E15 is the equivalent of doubling exports for corn farmers,” said Broin. While more work will be needed to achieve the market benefits of full E15 adoption, HBIIP is an important step in realizing this increased demand.
HBIIP creates grant funds to assist fuel retailers with converting pumps, related equipment and infrastructure for higher biofuel blends. Higher ethanol blends are fuels containing ethanol greater than 10 percent by volume. The program builds on the previous success of the Biofuels Infrastructure Program (BIP), which was in place between 2016 and 2019.
POET, headquartered in Sioux Falls, SD, is the world’s largest biofuels producer. POET is a leader in biorefining through its efficient, vertically integrated approach to production. Started in 1987, the company today has a network of 28 production facilities across 7 states. At full run rates, POET purchases 5% of US corn and produces 2 billion gallons of ethanol, 10 billion pounds of distillers dried grains, and 600 million pounds of corn oil annually. In 2019, Fast Company recognized POET on its annual list of “Most Innovative Companies” for transportation and FORTUNE recognized POET on its list of companies that are changing the world. For more information, visit poet.com.