The Economy Behind E85

When most drivers think about E85, they think about the price on the pump.

What many don’t realize is that E85 starts long before it reaches a gas station. Behind every gallon is an agricultural supply chain that supports farmers, producers, fuel terminals, and transportation networks across America.

Where ethanol comes from

Most ethanol used in the United States is produced from corn grown by American farmers.

Expanding domestic production helps strengthen the fuel supply chain while also creating new opportunities for agriculture and manufacturing nationwide.

A growing fuel market

Demand for E85 continues to be strong. According to Growth Energy, California drivers purchased approximately 114.7 million gallons of E85 in 2024, reflecting continued demand for a lower-cost, high-octane fuel option.

As more stations begin offering E85 expand access for more vehicles, that demand could continue to increase.

Supporting jobs beyond the gas station

The ethanol industry supports far more than fuel production.

Beyond producing fuel, the ethanol industry supports tens of thousands of jobs across the country. In 2024, it directly supported more than 55,000 jobs, with an estimated 258,000 additional jobs across agriculture, transportation, manufacturing, and related industries.

From growing crops to producing ethanol and delivering fuel to stations, every step of the supply chain contributes to the broader economy.

More than savings at the pump

Drivers often choose E85 because it costs less than gasoline. 

But E85 also represents a different kind of fuel supply chain – one built around American agriculture, domestic production and full renewable fuel rather than crude oil.

Every gallon connects farmers, ethanol producers, fuel distributors, and retailers working together to deliver affordable, high-octane fuel to drivers across California.

The Economy Behind E85