By Andi Anderson
Indiana’s ethanol industry is expanding, producing more than 1 billion gallons annually, according to the Indiana Corn Marketing Council.
Ethanol is made by fermenting sugars in crops like corn and sugarcane. Nearly 43% of Indiana's corn crop went to ethanol production in 2023.
Supporters like Tim Phelps from the Indiana Ethanol Producers Association highlight ethanol’s many benefits. He says it improves engine performance, reduces fuel prices, and cuts greenhouse gas emissions.
Phelps also points out that ethanol facilities help local farmers by increasing grain demand and supporting 35,000 jobs and 19,000 farms in the state.
However, critics are voicing concerns. A recent study by the World Resources Institute shows biofuels can harm the environment and society.
The report says that land use for biofuel reduces food production and impacts water quality and wildlife. It also notes that biofuel policies could increase food prices and worsen inequality for smaller or startup farmers.
Another concern is the taxpayer cost of supporting the ethanol industry. While biofuels reduce reliance on foreign oil, the public may be indirectly covering hidden expenses through government incentives and subsidies.
Still, the industry continues to expand. In April, the Environmental Protection Agency approved the year-round sale of E15, a fuel blend with 15% ethanol, in Indiana and nearby states. Also sold as Unleaded 88, this fuel option provides drivers with another choice at the pump.
The debate around ethanol highlights the need to balance economic growth with environmental responsibility. While Indiana’s ethanol industry helps many rural communities, ongoing discussions about its long-term impacts remain important for shaping sustainable agricultural policy.
Photo Credit: shutterstock-dickgage
Categories: Indiana, Energy