Article

The US ethanol industry is set for significant changes in 2026 due to investments influenced by 45Z and 45Q tax credits, particularly in carbon capture and sequestration (CCS) technologies. Major producers like Archer Daniels-Midland, Green Plains, and POET are investing in CCS to reduce carbon intensity and enhance product value.

Successful carbon injections by Tallgrass via its Trailblazer pipeline in Wyoming contrast with challenges faced by Summit Carbon Solutions, which was denied a permit in South Dakota but is progressing in other states. The EPA has also approved Texas to issue permits for 61 CCS wells, with a third of applications submitted in the past year.

US ethanol production has reached record levels, spurring robust export markets averaging 135,000 b/d through September, driven by demand from Canada, the UK, and Europe. Domestic demand is expected to rise as E15 blends expand, supported by new legislation in California. Fuel groups are lobbying for year-round E15 sales, though past efforts in Congress have faced challenges.