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Ethanol Links
The ethanol industry is the nation's fastest-growing energy sector
Ethanol production is setting new records in both production and demand. In 2004, more than 3.5 billion gallons of ethanol were produced in the U.S., up from 2.8 billion gallons in 2003. The demand is becoming greater as America looks for ways to reduce its dangerous and expensive dependence on imported oil.
A number of factors indicate that ethanol demand is not about to let up:
- MTBE, ethanol's major competitor, is being phased out due to environmental concerns- creating a potential market for an additional 2.1- 3.7 billion gallons of ethanol.
- New ethanol markets in Louisiana, Georgia and the Northeast U.S. have emerged, creating huge demand in large population areas.
- In a period of less than two years, California has shifted from using no ethanol to using more than 900 million gallons annually-and growing.
- Ethanol is blended in about 30% of the nation's fuel supply today- and that number grows each year. Additionally, a blend of 85% ethanol and 15% ordinary gasoline (known as E-85) is rapidly growing in popularity.
- Currently, 84 ethanol plants are in operation in the U.S.-with another fourteen under construction.
America's
policy makers, including the President, are helping foster the development
of the ethanol industry in an attempt to improve our self-reliance,
energy security and national economy. Congress is also considering a
Renewable Fuels Standard that could strengthen ethanol's role in the
nation's fuel supply.
Ethanol has already transformed America's fuel supply
- Ethanol is currently blended in about 30% of America's fuel supply-helping reduce toxic exhaust emissions and providing higher octane at a value price.
- Every major automaker approves the use of E-10 Unleaded-a blend of 10% ethanol and 90% ordinary gasoline that has been used in the U.S. for more than 25 years.
- Harley Davidson recommends the use of oxygenated, clean air fuels such as ethanol-blended gasoline.
- More than 1.2 billion bushels of corn were converted to ethanol in the 2003-04 production year.
- Ethanol production in the U.S. has set new records every year since 1996.
Foreign Oil Reduction
- Record production and use of ethanol in the US in 2006 reduced oil imports by 170 million barrels
- Reducing oil imports saved $11 billion from being sent to foreign and often hostile countries
- The use of 7.5 billion gallons of ethanol as part of the Renewable Fuels Standard will reduce foreign oil demand by 2 billion barrels.
Ethanol’s Impact on Local Communities
- Generates $406 million in gross output for the local economy
- Adds $223 billion to the Gross State Output
- Supports nearly 1,600 new jobs
- Increases household incomes by more than $50 million
Ethanol Impact on Global Warming
- The use of ethanol helps reduce carbon dioxide and other greenhouse gas emissions believed to cause global warming. Because ethanol is made from a renewable, plant- based feedstock, the carbon dioxide that is released during fuel combustion is recycled” by the plant as it grows, resulting in a reduction in greenhouse gas emissions by up to 20%.
Ethanol Impact on Food Prices
- A fluctuating corn market with a 3% natural inflation (USDA) would mean what costs $1.00 in 2006 may cost $1.03 in 2007. A static corn market ($3.50-4.00 bu) for several years could mean a slight inflation increase of 9-15% (3-5% annual increase, plus this would mean that what cost $1.00 in 2006 may cost $1.06-1.08 in 2007.