The U.S. Department of Energy announced plans to invest $36 million in technologies aimed at reducing emissions from the use of synthetic nitrogen fertilizer in corn and sorghum cultivation for ethanol production.
This funding will support projects that aim to lower the amount of fertilizer needed on farms while maintaining crop yields, according to the agency.
Agriculture contributes approximately 11% of U.S. greenhouse gas emissions, as reported by the Environmental Protection Agency.
Nitrous oxide emissions, partly resulting from nitrogen fertilizer application, comprise about half of these agricultural emissions, the agency noted.
The ethanol industry, seeking growth opportunities amid the rise of electric vehicles reducing the gasoline market, stands to benefit from lucrative federal and state subsidy programs by further decreasing fuel emissions.
However, ethanol producers faced a setback in April when the Treasury Department issued guidance that made it nearly impossible for ethanol to qualify for a sustainable aviation fuel tax credit included in the Inflation Reduction Act.