January 10, 2012

The top 5 ethanol stories of 2011

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By Kim Clark, Ag Program Manager for the Nebraska Corn Board

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As 2011 came to a close and 2012 began, so did the stories about ethanol that made headlines. The Renewable Fuels Association published The Top 5 Ethanol Stories of 2011. I must say, I have to agree with their Top-5 list, and this is the order I would rate them.

1) EPA approves E15 for MY 2001 and newer vehicles. In January the EPA announced that anyone with a 2001 and newer vehicle will be able to choose the fuel they use in their vehicle. They can use unleaded, E10, or E15. E15 is better for the environment and since the US has hit the RFS blend wall, E15 will help to overcome this.

2) Emergence of the biorefinery model. Approximately 40 percent of ethanol plants have begun to extract the corn oil when producing ethanol, and this number is only increasing. Food, feed, fuel, fiber, and now corn oil are produced in the ethanol process.

3) Advanced ethanol production begins, again. Major strides in cellulosic and advanced ethanol production began in 2011. Several companies have begun building commercial cellulosic ethanol plants in the Midwest and plan to use corn stover as the feedstock. This is a big hurdle to overcome since advanced and cellulosic ethanol have been emerging in pilot plants for the last few years.

4) US exports set all-time highs. An estimated 1 billion gallons of denatured and undenatured ethanol were exported in 2011. Canada and Brazil were the #1 and #2 importers, respectively, of ethanol fuel. Additionally, distillers grains exports were at an all time high. It was estimated the 8-9 million metric tons were exported last year.

5) End of VEETC and the secondary tax credit. The $0.45 blender’s credit expired at the end of 2011. Initially, the incentives was put into place as an incentive for ethanol blending to expand the industry and was not meant as a permanent tax credit. The ethanol industry has grown over the last 10 years, and it is now time to move forward without the tax credit.

2011 was an exciting year for ethanol with many accomplishments and stories. This next year should be good as well. Only time will tell!

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