WASHINGTON, D.C. --- Governors of 37 states this week asked the federal government for a new rule to mandate ethanol use. At present, engine warranties limit ethanol use to 10 percent. The group of governors wants a new rule that would call for 25 percent ethanol by 2025. According to the Seattle Times, U.S. producers make about 5.6 billion gallons of ethanol annually. But as more ethanol capacity comes online and engines are made to accommodate more ethanol, the potential market will greatly expand. Ultimately, ethanol production will rely on crops that are cheaper to produce than corn, such as prairie grasses and plant wastes including corn husks and wheat stalks.

Originally posted on Fleet Financials

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