Record ethanol exports, along with the potential for year-round E15, could greatly benefit grain producers, the state’s biofuels industry, and consumers.

Mick Henderson walks through the entire area of the Commonwealth Agri-Energy (CAE) complex nearly every day, overseeing the operation for the 22 years he has spent there as its general manager.

Helping to get CAE off the ground from its inception in 2004 has enabled him to witness the growth in the industry that could be on the cusp of a major upswing if current market trends continue and government regulations spur hopeful expansion.

According to the Renewable Fuels Association (RFA), the United States is the world leader in the supply and export of ethanol. In 2024, U.S. ethanol exports reached an all-time high of 1.9 billion gallons and an increase of over 36 percent over 2023, creating a value of U.S. ethanol exports of $4.3 billion, also a record high.

Henderson said 2025 was on track to be another record year for ethanol exports, and with the expansion of an E15 blend all year round, that could be a boost to the industry as well as the farmers who are growing the crops as a fuel stock. Historically, the reach of these blends is limited by regulatory restrictions. According to a Market Intel report by the American Farm Bureau Federation (AFBF), federal limits on fuel volatility restrict the sale of E15 in many parts of the country each summer. The rule stems from the Clean Air Act, where, in 1978, the EPA waived the requirements for E10 but left E15 subject to tighter standards even though it performs just as cleanly.

“Expanding to an E15 ethanol blend is a logical next step for both the plant and the region,” he said. “E15, which contains 15 percent ethanol, provides consumers with a cleaner and more renewable fuel option, helping to reduce greenhouse gas emissions and dependence on fossil fuels.”

Henderson added that by increasing E15 to year-round use, the facility can further support its sustainability goals and strengthen its impact on the local economy through increased demand for corn and other grains supplied by the cooperative’s farmers.

The CAE plant has operated continuously for over two decades, processing corn to produce ethanol and several co-products beneficial to other local industries including the food and beverage sector, as well as the livestock industry. CAE is an LLC owned by Hopkinsville Elevator Company. HEC is a farmer owned patronage-based cooperative with 3,400 local members. HEC handles corn, soybeans, and wheat at six elevator locations.

“CAE is located next to the Casky Branch of Hopkinsville Elevator, which is the largest site for the cooperative and serves as a central hub for receiving grain and transferring it to markets,” Henderson said. “The plant’s location was strategically selected for its direct access to the CSX main rail line, which makes it easier to ship products efficiently to regional and national markets.”

E15 expansion, a needed boost for agriculture

Henderson is in good company in calling for expanded E15, including supporters from both sides of the aisle in Congress, and an action alert from the AFBF.

Zippy Duvall, AFBF President, said making E15 available across the country year-round would deliver real benefits for farmers, consumers, and the country.

“Biofuels, like E15, are boosting farm businesses, improving the environment, and reducing costs at the pump,” he said. “Today, about 33 percent of total U.S. corn production goes to ethanol, and authorizing permanent ethanol-blended fuels all year could increase demand for corn by up to 2.4 billion bushels a year.”

Duvall added that overall, biofuels also play an impressive role in sustainability in this country, along with the regenerative practices farmers use to grow them.

“Roughly three trillion pounds of corn have been used to produce clean, renewable fuel in the last decade,” he said. “Behind those trillions of pounds of corn are farmers dedicated to reducing emissions and improving soil health. And their efforts are making a difference beyond the farm, too. A simple change to nationwide E15 would reduce CO2 emissions by more than 17.62 million tons per year. That’s equal to taking nearly 4 million cars off the road.”

At a time when farm families are facing one of the toughest ag economies in decades, a boost in E15 production presents an opportunity to expand a market for their crop while maintaining their commitment to good stewardship of natural resources.

Kentucky Farm Bureau Federation’s Commodity Marketing Specialist Taylor Thompson said year-round E15 would certainly be a boost for corn demand and welcome news for a key component of Kentucky’s agriculture economy.

“We’ve got the best growers in the world, and they continue to improve efficiency on the farm, doing more with less, but improved efficiency also requires adequate demand,” he said. “It shouldn’t be forgotten that this is not only a positive story for farmers, but consumers as well. American Farm Bureau Federation estimates that potential savings at the pump would be up to 18 percent.”

In a recent Market Intel post from AFBF Economist Faith Parun, Ph.D., notes, “Biofuels are one of the most reliable engines of demand for U.S. agriculture, supporting crop prices, rural jobs, and energy independence. Authorizing year-round E15 sales offers the clearest near-term path to strengthening ethanol demand, potentially using an additional 2.4 billion bushels of corn each year while lowering gas prices by 10 to 30 cents per gallon.”

As Henderson continues his walks around the CAE grounds, he knows the facility is poised to handle year-round E15.

“We started out as a 20 million-gallon-a-year plant, using about seven million bushels, but today it's 50 million gallons per year using 17 million bushels last year,” he said. “So, two and a half times bigger, two and a half times more ethanol, two and a half times more corn. Thanks to our location and infrastructure decisions made by our board of directors, we are ready for this.”