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'Blending wall' stands in way of ethanol growth--Purdue News

December 19, 2008

WEST LAFAYETTE, Ind. - Ethanol production opened the door to the renewable fuels industry. The industry now must get past an imposing wall of federal regulations and market conditions if it hopes to grow, said a Purdue University agricultural economist.

"The ethanol industry is now faced with what is called a 'blending wall,'" said Wally Tyner, an energy policy specialist. "The ethanol industry will not and cannot grow with the blending wall in place. That means we won't have cellulosic ethanol and the demand for corn for ethanol will be limited unless the blending wall is somehow changed or we find a way around it."

Unless the barrier is removed, ethanol production could level off by 2010, Tyner said.

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