Ford recently made headlines with its $11.4 billion investment to construct four battery electric vehicle (EV) manufacturing plants in Tennessee and Kentucky. In the announcement, the auto manufacturer expects up to 50 percent of its global fleet to be fully electric by 2030. If this didn't get your attention, it should. Saying a company is going to invest in technology is one thing. But when one of the major auto manufacturers is willing to invest billions of dollars in a multi-state, 3,600-acre campus, we should all take notice.
Why does this matter to corn growers? While EVs may be the latest craze to hit the auto world, they don't use a single drop of ethanol. This trend is being fueled by tax policies and regulations benefiting electric over internal combustion engines. The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule that amended Corporate Average Fuel Economy (CAFE) and carbon dioxide emission standards for model years 2021 through 2026 is driving investment dollars. Add in clean-air requirements set by the California Air Resources Board (CARB) and the state's executive order to achieve five million zero-emission vehicles by 2030, and it's not hard to see where the market's heading. All of this despite data proving high octane, low carbon, (HOLC) corn-based ethanol can beat the total lifecycle analysis of an electric vehicle when used in optimized engines.
If greenhouse gas reduction is the goal, moving toward an HOLC fuel standard would be better for the environment, and more economical for the consumer. The batteries needed to meet federal requirements use precious metals like lithium and cobalt. Not only is it an environmental challenge to mine these, but more expensive than internal combustion engines. How will we regenerate these precious metals? What happens once these nonrenewable resources are depleted? How can our electric grid power all these vehicles?
Conversations around EVs often just scratch the surface. More questions should -- and need to be asked. In the meantime, there is a renewable option available today that can reduce carbon emissions and increase fuel efficiency. We need to create a level playing field, and the time to implement a new fuel standard is yesterday.
The Next Generation Fuels Act will bring auto manufactures, fuel retailers, and the transportation sector together to help reduce carbon, increase fuel economy, and meet environmental goals. This legislation provides a roadmap to meet federal regulations and creates a pathway for corn-based ethanol to be in the marketplace for generations to come. "Congress Passes High Octane Fuel Standard." That's the headline we need to see.
Categories: Missouri, General