Florida published new proposed motor fuel rules on recently that could lead to wider ethanol blending in the country’s third-largest gasoline market, according to a Reuters news report.
Limited ethanol blending had already been occurring in Florida, but the issuing of broad rules on gasoline containing ethanol is a step in creating the regulatory framework needed in opening up the market to the burgeoning U.S. ethanol industry.
According to Reuters, at least four other states in the Southeast are also considering new gasoline rules that could open markets to biofuels.
Florida companies are eager to make biofuels from biomass such as orange peels, while established ethanol producers are also eyeing the state fuel pool, which could be up to an annual 1-billion-gallon ethanol market.
South Dakota-based POET, the largest U.S. ethanol producer, expects to supply the Florida market by rail from five biorefineries it is building in Ohio and Indiana.