- DOE allocates $36 million to cut emissions from nitrogen fertiliser in corn and sorghum for ethanol.
- Agriculture contributes 11% of US greenhouse gases, half from nitrous oxide linked to fertiliser.
- The ethanol industry seeks subsidies amid the rise of electric vehicle use but faces hurdles in aviation fuel tax credits.
The US Department of Energy (DOE) has announced plans to allocate $36 million to develop innovative technologies to curb emissions from synthetic nitrogen fertiliser used to cultivate corn and sorghum for ethanol production. This funding is specifically earmarked to support initiatives that aim to reduce the overall use of fertilisers while ensuring that crop yields remain robust.
According to data from the Environmental Protection Agency (EPA), agriculture contributes approximately 11% of total greenhouse gas emissions in the United States. About half of these emissions stem from releasing nitrous oxide, which is closely linked to applying nitrogen-based fertilisers in agricultural practices.
The ethanol industry, which has been grappling with declining demand for gasoline as electric vehicles gain traction in the market, stands to benefit substantially from both federal and state-level subsidy programs. These programs are designed to incentivise and reward emissions reduction associated with ethanol production, thereby supporting the industry’s competitiveness and sustainability efforts.
However, recent developments have posed challenges for ethanol producers. In April, new guidelines issued by the Treasury Department created obstacles for ethanol producers seeking to qualify for sustainable aviation fuel tax credits under the Inflation Reduction Act. This setback underscores the complexities and evolving regulatory landscape facing the ethanol sector as it navigates its role in the broader energy transition.
Evelyn N. Wang, the director of the DOE’s Advanced Research Projects Agency-Energy program, emphasised the critical importance of advancing technologies that not only mitigate fertiliser-related emissions in ethanol production but also enhance operational efficiency and maintain crop yields.
Such advancements are beneficial for reducing costs and improving environmental performance within the ethanol sector but also hold significant implications for supporting American farmers and bolstering the resilience of the national agricultural economy.