CoBank says 2023 outlook for biofuels is ‘very strong’

CoBank on Dec. 13 released a report outlining its 2023 forecast for the U.S. rural economy. Within that report, CoBank says “the outlook for biofuels is very strong, supported by federal policy and demand tailwinds from 2022.”

CoBank predicts that the ethanol industry will benefit from greater usage of E15, growing demand for corn oil, and strong pricing of carbon dioxide. According to the report, carbon dioxide, a coproduct of ethanol production, is experiencing a demand surge from both industrial users and carbon sequestration projects.

The outlook for other types of biofuel is strong as well. CoBank predicts the momentum behind renewable diesel will continue to grow as new soy crush processing and oil refinement facilities come online, supported by the Inflation Reduction Act of 2022.

A full copy of the report can be downloaded from the CoBank website.