Agriculture stands at a crossroads, positioned between tradition and a bold new frontier. Ethanol and soybeans — historically cornerstone commodities — now lead an evolving renewable fuels industry. Robert White, senior vice president at the Renewable Fuels Association (RFA), captures this pivotal moment clearly: “We’re in an era of unparalleled opportunity, and agriculture’s role has never been more critical.”
Ethanol’s Expanding Impact
Today’s ethanol industry comprises 198 biorefineries across 24 states, boasting an annual production capacity approaching 18 billion gallons and a proven sustained run rate of 16.99 billion gallons annually. Ethanol has become central to the U.S. energy landscape, accounting for 10.4% of nationwide gasoline sales. This thriving sector significantly bolsters rural economies, generating substantial animal feed output — 36 million metric tons annually — and producing valuable distillers oil totaling 4.5 billion pounds each year.
The international footprint of ethanol has expanded dramatically as well. In 2024, U.S. ethanol exports surged dramatically, reaching a record 1.91 billion gallons with a value of $4.3 billion, reflecting an increase of over half a billion gallons from the previous year. White emphasized this achievement at the Grain Elevator and Processing Society’s annual Exchange in February: “U.S. ethanol exports have reached unprecedented levels, opening up markets across 80 countries and reaffirming America’s competitive advantage in renewable fuels.”
As ethanol continues its rapid trajectory, innovative markets are expanding its role beyond conventional gasoline blends such as E10, E15, and E85. The industry’s horizon now includes renewable diesel, plug-in hybrid electric vehicles (PHEVs), hydrogen fuel cells, renewable chemicals, renewable plastics, and sustainable aviation fuel. According to White, these emerging sectors represent ethanol’s next wave of growth, offering new revenue streams capable of reshaping ethanol’s economic and environmental landscape. He underscores that proactive policy engagement by ethanol producers is crucial to influencing sustainability criteria, regulatory frameworks, and marketplace acceptance.
The RFA further highlights ethanol’s critical contribution to reducing greenhouse gas emissions, noting ethanol cuts emissions nearly in half compared to traditional gasoline, positioning it as a key asset for meeting national and global climate targets. The diversification into renewable chemicals, plastics, and aviation fuels not only promises significant economic resilience but also insulates producers from market volatility, securing ethanol’s role as an indispensable renewable energy source.
Policy shaping is a vital part of safeguarding ethanol’s future. White stresses, “Ethanol’s role in sustainable aviation fuels and broader energy policy decisions will be vital. Active engagement is essential to represent agriculture and ethanol effectively in upcoming regulatory discussions.”
Dan Wesely, board member with the National Corn Growers Association, further underscores active advocacy’s importance: “Farmers and ethanol producers must continue to collaborate closely, ensuring favorable policies and market conditions that support the sustained growth and diversification of ethanol production.”
Soybeans: Innovation and Economic Powerhouse
Soybeans are becoming increasingly pivotal for renewable diesel and biodiesel production, driven by cutting-edge technologies and growing global demand. Soybean processing significantly influences agricultural sustainability and profitability. Scott Korte, director of engineering at N Hunt Moore & Associates, describes soybeans’ transformative impact: “Soy protein products, from isolates and concentrates to specialty animal feeds, signify the direction agriculture processing is headed.”
From 2009 to 2024, soybean meal exports surged 56%, with domestic meal demand simultaneously growing by 31%. Soybean oil usage in biofuel production experienced an astonishing 733% increase, reflecting robust market dynamics.
Advanced desolventizing technologies — flash desolventizing and down-draft desolventizing — enable soybean processors to create premium, protein-rich products. These processes produce high-quality protein concentrates and isolates ideal for human and animal nutrition markets, significantly enhancing profitability and market competitiveness.
John Mulholland, general manager at N Hunt Moore & Associates, emphasizes the complex safety and operational considerations inherent in oilseed processing: “A crush plant combines attributes of grain handling and solvent extraction facilities, presenting unique safety and operational challenges. Effective management of these combined risks is crucial for ensuring product quality and workplace safety.”
Soybean processors further enhance profitability through advanced vegetable oil distillation, capturing valuable by-products such as tocopherols, sterols, and fatty acids. Although distillates represent merely 0.1% of processed oil, these by-products command premium prices in pharmaceutical and nutritional supplement markets, offering significant economic incentives for processors.
Government mandates currently drive demand for soybean biofuels, consuming roughly half of U.S. soybean oil. Koerbitz emphasizes strategic adaptability: “Any shift in government policy could dramatically impact demand. Processors must remain adaptable and strategic to effectively navigate potential changes.”
Technological innovation underpins the biofuel sector’s future. Mulholland highlights the crucial role of new technologies in oilseed processing: “Innovative extraction methods, process safety management, and digitalization through artificial intelligence and cloud computing are revolutionizing oilseed processing facilities. Embracing these technologies ensures efficiency, competitiveness, and safety in the industry.”
Together, ethanol and soybeans demonstrate agriculture’s ability to offer impactful economic and environmental solutions, adapting traditional practices to address global sustainability challenges and evolving market demands. White summarizes the industry’s bold trajectory succinctly, “Agriculture is stepping boldly into the future. The potential is tremendous, and the stakes couldn’t be higher.”
Indeed, ethanol and soybeans are not merely adapting — they’re driving agriculture forward, reshaping the industry’s trajectory and defining a new era of renewable fuels innovation that promises economic resilience, market diversity, and a more sustainable future for decades to come.