Economic impacts of Nebraska ethanol

As September is Renewable Fuels Month in Nebraska, we want to celebrate the economic impacts it brings to Nebraska.

A vibrant agricultural economy is the leading contributor of Nebraska’s economic success and ethanol is a major component.  

The ethanol industry directly generates jobs, increases Nebraska’s annual economic base and gives back in local and state tax revenues each year. Also, wages in the ethanol sector outpace wages in other manufacturing sectors by $20,000!

Homegrown, Renewable Fuels provide Energy Independence

September is Renewable Fuels Month!
Part Three of a Four-Part Series for Renewable Fuels Month

Biodiesel and ethanol, two energy sources made from soybeans and corn, respectively, are homegrown and locally produced. For Renewable Fuels Month in September, Nebraska farmers celebrate these homegrown crops and their abundant number of renewable uses.

In Nebraska last year, farmers raised 252 million bushels of soybeans and 1.6 billion bushels of corn. And that number is growing. From these two crops, fuel sources, livestock feed and thousands of food products are created – right here in Nebraska, as well as across the U.S.

Homegrown, renewable fuels contribute to our energy independence and security.  Over 1,500 are employed in rural Nebraska because of renewable fuels. Nationwide, more than 850,000 jobs are supported by renewable fuels, according to an economic impact study by John Dunham & Associates recently released by the Fuels America coalition.

The Dunham & Associates report tells the story of an innovative, advanced renewable fuels and biofuels industry that is producing growing benefits for America’s economy. Part of the effort in contributing towards an expanded biofuels industry is the Renewable Fuel Standard (RFS). “The data is in: The RFS is driving billions of dollars of economic activity across America,” the report concludes. “This is the result of years of investment by the biofuel sector to bring clean, low carbon renewable fuels to market.”

Renewable fuels represent nearly 10% of America’s fuel supply and have helped reduce U.S. reliance on foreign oil to the lowest level in years.

In 2007, the RFS program was expanded to include biodiesel, increased the amount of fuel required to be blended into transportation fuel to 36 billion gallons in 2022, created new categories of renewable fuels including advanced, cellulosic, and conventional and evaluated the lifecycle of greenhouse gases to ensure each category was meeting a minimum threshold.

The RFS is doing exactly what it was intended to do.  “In 2013, we reduced our imported crude oil by 462 million barrels and 1.1 billion gallons of imported petroleum diesel,” said David Merrell, corn farmer and District 7 director for the Nebraska Corn Board. “Each year we are producing more renewable fuels in the United States. They are supporting the local farmer and provide as much as $3 million in tax revenue for Nebraska.”

The RFS is reducing our dependency on imported oil, providing a homegrown, locally produced renewable fuel, creating jobs, providing tax revenue, and more.  Renewable fuels are a win-win situation for the farmers, rural communities, and consumers.

Merrell added, “With the diversity of products we can make from these two crops, Nebraska consumers should feel great about using renewable products, like ethanol and biodiesel that come from a homegrown crop grown each year across the state.”

10 reasons to use ethanol-blended fuel this summer

The choice at the gas pump is easier for Nebraskans in their summer travel and recreational plans this year. And that choice is renewable, cost-effective and builds a strong economy. Here are ten reasons to use ethanol-blended fuel this summer.

1. The most affordable fuel.
The drastic rise of gas prices in the busy summer months hurts our pocketbooks. The U.S. Energy Information Administration’s (EIA) projection for the April-through-September summer driving season year is on average $3.61/gallon, 3 cents higher than last year. This year’s Memorial Day holiday saw drivers paying slightly more for gasoline than the previous two years, according to AAA. Thankfully, ethanol-blended fuel lowers gas prices up to $1.09 per gallon on average and saves the average American household $1,200 on their gas bill annually.

2. It’s renewable.
It’s no secret that Nebraska is the “Cornhusker” state and is notably the third largest corn producing state and second largest ethanol producing state in the nation. By growing 14 billion bushels of corn in the U.S. in 2013, corn is a renewable crop that provides for a reliable fuel source year after year. A recent poll by Fuels America found that 92% of U.S. adults support having renewable fuel at their local gas station, specifically E15 fuel – renewable fuel made of 15 percent ethanol and 85 percent gasoline.

3. Ethanol plants create food, feed and fuel.
An ethanol plant doesn’t just make fuel. When a bushel of corn travels to the plant to make fuel, it also makes food and other co-products in the process. Co-products include livestock feed called distillers grains, corn oil and other products that add to the food supply. In other words, we’re making food, feed and fuel. From one bushel of corn comes 2.8 gallons of ethanol in addition to 17 pounds of distillers grains. The strong ethanol industry in Nebraska is one of the main factors for the state’s recent status move into the number one cattle feeding state because of the availability of the high-protein, value-added distillers grains feedstuff.

4. Has not driven up food prices.
The price of corn is the lowest it’s been in three years, yet food prices have not come down. USDA’s Economic Research Service (ERS) change in food prices index shows that food prices are going to continue to rise. So what is driving up food prices? Researchers at the World Bank identified crude oil as the number one determinant of global food prices; as the price of oil increases, food prices follow closely behind.

5. Builds up our state economy and growth of jobs.
Just in Nebraska alone, over 1,200 direct jobs are attributed to the ethanol industry, not to mention the hundreds of thousands indirect jobs across the country. Ethanol supports rural America, generating a $500 billion increase to communities’ farm assets around the country. When agriculture is healthy, the state economy is healthy.

6. Gives consumers a choice.
Ethanol, a renewable fuel, gives Nebraskans a choice when they go to fill up with gas. Those choices aren’t limited to the lower price of their gas bill, but also the chance to choose a domestic, clean-burning fuel that fuels our state’s economy as well. Those drivers with a flex fuel vehicle (FFV) have the choice to use any ethanol fuel blend up to 85 percent ethanol (E85).

7. Reduces greenhouse-gas (GHG) emissions.
Compared with oil, ethanol-blended fuel burns cleaner and reduces harmful GHG emissions. Ethanol lowers the level of toxic, cancer-causing emissions in vehicle exhaust—reducing air pollution, improving human health, and reducing greenhouse gas emissions.

8. Ethanol is homegrown.
Ethanol has dramatically reduced the size of the checks America writes to foreign oil suppliers to the tune of $44 billion dollars saved last year. The U.S. reduced oil imports by 476 million barrels in 2013—the equivalent of about 12% of total U.S. crude oil imports, thanks to this renewable resource.

9. Use in boats and mowers.
With the summer months comes fun in the sun and in the yard. Ethanol-blended fuels up to 10 percent (E10) can be used successfully in marine watercraft and small engines, such as lawn mowers. Small engine owners should know that EPA has approved E15 only for automobiles manufactured in model year 2001 and newer, and it is not approved for any other engine use.

10. E15: tested and safe.
E15, fuel blended that is 15 percent ethanol and 85 percent gasoline, has been the most aggressively and comprehensively tested fuel in the history of the EPA, which has been approved for its use in vehicles starting with the 2001 model year and newer. E15 saves more money at the pump, burns cleaner and supports our economy. NASCAR race cars have run more than 5 million miles on E15, starting with the 2011 racing season, and its drivers and mechanics give the fuel high marks for power and durability.

Reaching Energy Independence

By Kim Clark, ag program manager for the Nebraska Corn Board

“And I’m proud to be an American,

where at least I know I’m free.

And I won’t forget the men who died,

who gave that right to me.”  -Lee Greenwood

Did you ever think these words would be so true.  Memorial Day is a day to remember those that have served our country and fought for the freedom we have today.  Some of those soldiers never returned home to their loved ones.  They died serving our country.  For what? – our independence! 

What does independence mean to you?  Is it your freedom of religion, choice, speech, right to bear arms? 

The definition of independence according to the Microsoft Encarta Dictionary is: “Freedom from control: freedom from independence on or control by another person, organization, or state.”  This independence includes energy independence. 

Energy independence is reducing our dependency on imported oil-the oil that some of our soldiers are protecting overseas.  Last year, 13.9 billion gallons of ethanol displaced 485 million barrels of imported oil.   According to the Energy Information Administration, each day, the US imports over 8.9 million barrels of crude oil of which 4 million barrels are from OPEC countries, but this number is decreasing with ethanol fuel.  Of the oil imported, 71% is used for transportation. 

The best and easiest way to reached energy independence is to take advantage of our home-grown, renewable fuel produced right here in United States-ethanol.  Nebraska is the second largest producer of ethanol, about 2 billion gallons each year. 

There are over 120,000 flex fuel vehicles (FFV) in Nebraska that can use up to 85% ethanol fuel and this number is increasing each day.  FFV owners have a choice at the pump.  This choice reduces the amount of crude oil the US needs to import each year.   Even if you don’t drive a FFV, you can still fill up your gasoline vehicle with E10-a blend of 10% ethanol.   You, too, can reduce the US foreign oil dependency.

Energy independence reduces our dependence on imported oil, creates thousands of jobs, contributes to local, state and federal tax revenue, increases household income, reduces the price at the pump, and more.

As you remember the Memorial Day and the reason for the holiday, you can help the US achieve energy independence by filling up with ethanol fuel.  

Video: E15 Expansion

With high gas prices, finding an alternative fuel option is always the goal and E15 fuel may be the future of gasoline.

E15 fuel is a blend of fifteen percent ethanol.

The Nebraska Corn Board recently met to discuss how to expand E15 fuel pumps.

The Corn Board says that they would like to see E15 introduced legally and safely and also said that there is a lot of misinformation about E15 such as requirements for ethanol plants and fuel retailers.

Last year, the EPA approved E15 for 2001 and newer cars, light-duty trucks, and SUVs.

Earlier this year, E15 became a legal fuel.

Thanks to KHAS-TV Channel 5 for this report.

Ethanol saves you more than $1 per gallon

Research results were released this week showing that America’s growing use of domestically-produced ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011.
The updated research was conducted by economics professors at the University of Wisconsin and Iowa State University.  The 2011 results, which are up from an average impact of $0.89 per gallon in 2010, were released today by the Center for Agricultural and Rural Development (CARD). The new analysis, an update to a 2009 peer-reviewed paper published in Energy Policy by professors Dermot Hayes and Xiaodong Du,  also found gasoline prices have been reduced by an average of $0.29 per gallon, or 17%, from 2000-2011 thanks to  the growing use of ethanol.

Three primary factors are responsible for ethanol’s more robust price benefit at the pump in 2011: 

• Higher oil and gasoline prices
• Higher ethanol inclusion
• Ethanol being priced at a larger-than-normal discount to gasoline

In a release from the Renewable Fuels Association, Bob Dinneen, President and CEO said, “While it’s hard to imagine that gas prices could be even higher than they are now, this study clearly underscores that the current pain at the pump would be far worse without ethanol.”

Dinneen continued, “Because ethanol makes up 10% of our gasoline pool today, it significantly reduces demand for oil and puts downward pressure on gas prices. From coast to coast and border to border, ethanol is helping save consumers money.  In these times of high unemployment and sky-high gas prices, ethanol is one America-made solution that is providing some respite for battered American families trying to make ends meet.”

Key conclusions derived from the report include:

• In 2011, ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon.
• Regular grade gasoline prices averaged $3.52 per gallon in 2011, but would have been closer to $4.60 per gallon without the inclusion of more than 13 billion gallons of lower-priced ethanol.
• The average American household consumed 1,124 gallons of gasoline in 2011, meaning ethanol reduced average household spending at the pump by more than $1,200.
• Since 2000, ethanol has kept gasoline prices an average of $0.29 per gallon cheaper than they otherwise would have been.
• Based on the $0.29-per-gallon average annual savings, ethanol has helped save American drivers and the economy more than $477 billion in gasoline expenditures since 2000 – an average of $39.8 billion a year.

What’s even more exciting about the upcoming year is that you should see even more savings per gallon with the approval of E15. Stay tuned!

Read more about the above research here.

Why blender pumps?

Most likely you are probably asking yourself what is a blender pump and how does it affect me?

Don’t worry; you’re not the only one with these types of questions as many drivers are starting to learn about the benefits that blender pumps have to offer.

First, you should know that ethanol blender pumps have only been around for a short amount of time, since 2006. The nation’s very first ethanol blender pump was put into operation at 4 Seasons Co-op in March 2006 up in Britton, South Dakota. This new technology allowed drivers to choose the mixture of fuel they would like to put into their fuel tanks. Other fuel retailers began to slowly add this new technology to their fuel stations across the nation to give drivers a choice at the pump.

So now that you know the history of the blender pump, you are probably wondering why you hardly see blender pumps at fuel stations. One main reason is that blender pumps aren’t a cheap investment for fuel retailers. The approximate cost of a blender pump is around $26,000, approximately $7,500 more than a regular fuel dispenser.

Although blender pumps are expensive, retailers can apply for grants to help cover the expense of installing a blender pump. For example, the Nebraska Corn Board and Nebraska Corn Growers Association have a $5,000 grant that Nebraska fuel retailers can apply for to help cover their installation cost of a blender pump. In order to apply for this grant, fuel retailers need to download and fill out an application from the Nebraska Corn Board website and then send it into the Nebraska Corn Board office where the Market Development Committee will review the applications.

Like it was said earlier, blender pumps are not a cheap investment and a reason why there are less than 20 locations in Nebraska that offer blender pumps. Now most would think that these locations would mainly be in the more populated parts of the state such as Grand Island, Lincoln, and Omaha. However, that is not the case and while Grand Island does have two blender pump locations, Lincoln and Omaha have none. It is actually surprising that neither Lincoln nor Omaha have a blender pump location especially from the fact that these locations have the highest number of flex fuel vehicles on the road! Lincoln has approximately 15,000 flex fuel vehicles and Omaha has over 25,000 flex fuel vehicles with many more commuting into the communities each day.

Some may think that the reason there are very few blender pump locations is from the fact that there aren’t very many benefits. Yet, that isn’t the case, and blender pumps offer drivers of flex fuel vehicles many different benefits.

One main benefit is drivers can choose their own blends of fuel. A person can choose a higher amount of gasoline blended with ethanol or vice versa. For example, a blender pump location may offer the choice of either E30 (30% ethanol, 70% gasoline), E50 (50% ethanol, 50% gasoline), or E85 (85% ethanol, 15% gasoline).

Not only do blender pumps give drivers a choice at the pump, but it also allows drivers to keep more money in their pockets. Studies have shown that using blender pumps can actually save drivers money compared to using regular gasoline. Sometimes the savings can range from ten cents a gallon up to almost forty cents a gallon. Now, when you look at that it doesn’t seem to be much. However, if you fill up a 12 gallon tank, and you get a forty cent savings, you end up saving $4.80 every time you fill up. Still doesn’t seem like your saving much? Well, if you figure you have to fill up at least once a week, you end up saving $19 each month or $228 a year. In today’s economy, every dollar we save can end up going towards something else.

Not only is ethanol saving drivers money and giving them a choice, it also helps their vehicles run better. Studies have shown that using higher blends of ethanol actually help a vehicle engine run smoother plus increase its horsepower. It should be noted though that ONLY flex fuel vehicles can use higher blends of ethanol greater than E10. If you aren’t sure if your vehicle is a flex fuel one, check either the owner’s manual, the gas cap, or look for the flex fuel emblem which should say whether you can use higher blends of ethanol. You can also visit EthanolRetailer.com to see if your own car is flex fuel or if you are looking for a new flex fuel vehicle.

Next time you pull into the fuel station, check to see if they use blender pumps. If they do and you drive a flex fuel vehicle, don’t be afraid to use them. Just remember the benefits that blender pumps have to offer and also realize that you are supporting your local economy and the 26,000 Nebraska corn farmers! If you would like to learn more information about ethanol or Nebraska corn farmers, be sure to visit the Nebraska Corn Board website!

Smart, sustainable science

Can sustainable and science exist in the same sentence? With corn farming, yes.

Farmers are being more sustainable than ever through responsible stewardship, new genetics and improved management practices, Nebraska corn farmers are growing more corn with less – less fertilizer, less chemicals, less water, less land and less of an impact on the environment. And they use science to achieve all of this.

Through smart, sustainable science, farmers and researchers in agriculture have been able to reduce their usage of energy that it takes to grow a bushel of corn by 37% over the past 30 years.

Through smart, sustainable science, new, innovative fertilization methods have allowed today’s American corn farmers to produce 87% more corn per ounce of fertilizer.
Through smart, sustainable science, monitoring soil moisture levels and measuring the amount of water corn plants lose each day is helping Nebraska corn farmers significantly reduce irrigation and water demand.

Through smart, sustainable science, corn farmers have been able to produce a sustainable, corn-based fuel that is freeing our dependence from foreign oil and is better for the environment: ethanol. When corn farmers take their corn to the ethanol plant, they are producing two products: ethanol – a sustainable fuel for their vehicles, but also a high-quality protein feed for livestock – distillers grains. Two products from one – one more way farmers are growing more on less.

There is no question: Corn farmers can do what America and the world is asking of them: Grow more corn for feed, food, fiber and fuel – and do it in a way that protects the environment and provides economic benefits all along the value chain. That’s smart, sustainable science.

__________________________________________________________________

Read some more posts on Sustainability:

Video: This Land is Your Land

Can Nebraska corn farmers continue to grow more with less?

Growing more with less, someone else sharing your story

Finding the solutions to feed, fuel the world

Does Ethanol Really Have a Future? Why yes it does!

Biofuels helping U.S., Western Hemisphere become energy self sufficient

A year ago, a report by BP noted that the United States’ dependence on foreign oil peaked in 2005 and increased fuel efficiency and the increased use of biofuels like ethanol will further drive down that dependence and the use of oil overall through 2030.

BP came out with an updated report this week and reaffirmed that thinking – but expanded it to say that among energy importing regions, North America, with growth in biofuel supplies and unconventional oil and gas, will turn today’s energy deficit (mainly oil) into a small surplus by 2030.

This does not mean we'll have cut the cord from oil. Instead, that the volume of oil imports in the U.S. would fall significantly, at least in BP's estimation.

Bob Dudley, BP's CEO, said U.S. oil imports have dropped by about one-third since peaking in 2005 and are likely to be half of today’s level in 2030. "The U.S. now produces over 50 percent of the liquid fuel it uses – as opposed to importing the majority, as was the case a few years ago," he said in a speech.

In the report's downloadable booklet (.pdf), BP noted that the import share of oil demand and the volume of oil imports in the U.S. will fall due to rising domestic shale oil production and ethanol displacing crude imports.

When looked at on a hemisphere-basis, the Western Hemisphere may become "almost totally energy self-sufficient" by 2030, as the growth in biofuels production (like ethanol) and oil and gas supplies all expand.

This is how The Guardian reported it: "In a development with enormous geopolitical implications, a large swath of the world taking in North and South America would see its dependence on oil imports from potentially volatile countries in the Middle East and elsewhere disappear, BP said, although Britain and western Europe would still need Gulf supplies."

BP said renewables, including biofuels, will continue to be the fastest growing sources of energy globally, rising at an annual clip of more than 8 percent, much quicker even than natural gas, the fastest growing fossil fuel at about 2 percent a year over the period to 2030.
While BP said biofuels growth will still be "very robust", it did scale it back some due to "more modest expectations of penetration of next generation fuels." (Certainly something that can be worked on.)

The report focuses a great deal on growth markets, especially India and China. In fact, BP predicts that energy demand will soar by 39 percent by 2030 thanks to huge growth in emerging markets like those.

BP said such growth in the rest of the world, principally Asia, will depend increasingly on the Middle East in particular for its growing oil requirements. It said the oil cartel OPEC will grow its market share as a result, reaching 45 percent by 2030 – a level not approached since the 1970s. (Will that have an impact on global stability?)

While oil will continue to lose market share through 2030, BP said the demand for hydrocarbon liquids will still reach 103 million barrels per day in 2030, up by 18 percent from 2010.

This means the world will still need to bring on enough liquids – oil, biofuels and others – to meet that forecast 16 million barrel per day of extra demand by 2030 and replace declining output from existing sources. Where should that focus lie? 

Also see:
Biofuels driving down dependence on foreign oil
Big Oil defends tax breaks, massive profits
How many (other) enviromental groups are in bed with big oil?

Five Ethanol Stories to Watch for in 2012

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


Last week we looked at the Top 5 Ethanol Stories of 2011 according to the Renewable Fuels Association (RFA). This week we will look at the Top Five Ethanol Stories to Watch for in 2012 according the RFA.

1. First commercial availability of E15 for 2001 and newer vehicles. Once federal requirements to certify E15 are complete, E15 will be available on a state by state basis. There are a couple regulations in Nebraska that need to be addressed before retailers in Nebraska can offer E15 after regulation is completed at the federal level. Expect E15 to be certified at the federal level in the first half of 2012.

2. Free and fair trade of ethanol. The United States is the world’s largest producer, consumer and exporter of ethanol. We are also the lowest cost producer. New challenges from ethanol interests in other nations have arisen such as the European Union anti-dumping investigation and the ethanol policies in Brazil. A fair resolution to trade challenges will be important to the continued growth and evolution of domestic ethanol production.

3. Legal activity regarding ethanol may increase. The recent ruling on low carbon fuel standards by a California federal judge stated that California’s LCFS is unconstitutional and was recently appealed. This issue, international litigation and other issues promises to keep lawyers busy this year.

4. Renewable Fuel Standard challenges. Even though this is an election year, and Congress may accomplish less this year than last, there will still be groups that push to amend or eliminate the RFS. The expiration wasn’t good enough for some groups. They are still looking for cheap corn and food versus fuel debates.

5. Answering cellulosic ethanol challengers. There are a couple cellulosic ethanol plants that are working to be up and running this year or early next year. In order for this to be successful, Congress must renew key tax provisions for cellulosic ethanol producers. The RFA and its partner organization, the Advanced Ethanol Council, will make extending these policies a top legislative priority.

Although VEETC expired at the end of 2011, the RFS2 still remains in place. These won’t be the only ethanol stories we will see in 2012, but these are the five main stories that are on the top of our list at the moment. 2012 could be an interesting year and may bring on new ethanol issues and stories.

Thanks to bigger yields, irrigated corn is more energy efficient

Irrigated corn in Nebraska is highly efficient in the use of energy, water and fertilizer, as the increase in yields more than offset the energy costs of inputs, according to researchers at the University of Nebraska-Lincoln.

The research paper "High-yield maize with large net energy yield and small global warming intensity," was published online in the Proceedings of the National Academy of Sciences. You can view the abstract and view the entire paper here.

The paper was co-authored by Ken Cassman, a UNL agronomist, and Patricio Grassini, a UNL research professor in agronomy and horticulture.

As noted in North Platte Bulletin (click here for the article), the research shows that modern, irrigated, high-input agriculture, even though it uses more fossil fuels than rainfed systems, also produces much higher crop yields. The perception of irrigated agriculture as "energy wasteful" fails to take into account crop-management changes in recent decades that have increased yields without more fertilizer or irrigation, Cassman said in the paper.

"In fact, we found that irrigated corn had substantially larger net energy yield and less greenhouse gas emissions per unit of grain produced than corn from rainfed systems with much smaller input levels and lower yields," Grassini told the paper.

Research findings are based on several years' field data collected from a large number of commercial production fields in Nebraska.

In the Wisconsin Ag Connection (click here), Grassini said that it's important to assess energy efficiency and greenhouse gas (GHG) emissions of cropping systems on a yield basis, not a land-area basis. For example, it may be possible to achieve a large decrease in GHG emissions in the three Nebraska counties included in the study by converting irrigated cropland into rainfed-only agriculture, but to make up for the estimated 50 percent decrease in grain yield would require an additional 308,000 acres of rainfed corn production.

"Thus, it is penny-wise and pound foolish to convert irrigated agriculture back to dryland production for the sake of reducing greenhouse gas emissions," Grassini told the publication.

"At some point, in a world with limited resources and confronted with emerging challenges such as climate change and limited supplies of fresh water, understanding how all of the world's agriculture performs in terms of net energy yield, greenhouse gas emissions intensity and water and nitrogen productivity is going to be important," Cassman said. "This paper sets standards on how you can do that using real-world farm data."

Yet progress can still be made – as farmers continuously adopt improved management practices, adopt advanced irrigation systems, take advantage of conservation tillage practices, utilize improved hybrids and fine-tune applications of nitrogen fertilizer and irrigation water. (It's sustaining innovation!)

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Cassman, if you recall, published some research in 2009 that examined modern production methods for corn and ethanol – and the results were impressive. One of the best points of that work (see the links below) was that between 10 and 19 gallons of ethanol are produced for each gallon of petroleum used in the entire corn to ethanol production life cycle.

Some have a hard time grasping this – especially after doing a Google search and coming up with some very (very!) dated work by Pimentel that continues, despite being out of date and inaccurate by today's standard, to be repeated by the anti-ethanol crowd.

• University report slams corn ethanol myths
• Ethanol reduces greenhouse gas emissions, oil use

FREEDOM film promotes ethanol

Last week, the screening of the documentary film, FREEDOM, was in Lincoln, sponsored by Green Plains Energy and The Joslyn Institute for Sustainable Communities.

The film focused on the use of ethanol as the most sustainable fuel for transportation –the energy that is in the biggest demand. These important points were covered in the film:

• Ethanol does not require more energy to make than it yields.

Argonne National Laboratory research has shown that corn ethanol delivers a positive energy balance of 8.8 megajoules per liter. The energy balance from second-generation biofuels using cellulosic sources is up to six times better, according to a study published in Biomass and Bioenergy Journal.

• Ethanol does not take food away from humans.

Only 1 percent of all corn grown in this country is eaten by humans as sweet corn. The rest is No. 2 yellow field corn, which is used in animal feed, food supplements and ethanol.

• Ethanol does not emit more greenhouse gases than gasoline.

A 1996 EPA study analyzing sources of air pollution confirmed that gasoline vehicles and non-road equipment are the largest contributors to vehicular gaseous hazardous air pollutants. However, another study showed ethanol reduces tailpipe carbon monoxide as much as 30 percent and tailpipe particulate matter emissions by 50 percent. Also, the Journal of Industrial Ecology at Yale University published a study in 2009 that found that greenhouse gas emissions are reduced by up to 38-59% when using ethanol as a transportation fuel.

• Ethanol can be made from waste.

Cellulosic ethanol can be made from agricultural waste and biomass such as corn cobs and stover, wheat straw, wood, energy crops & even municipal waste.

• Ethanol is cleaner burning.

Compared to gasoline, ethanol reduces every single tailpipe emission (CO; CO₂; smog; particulates; NOx and SOx) because ethanol contains 35% oxygen and results in a higher temperature burn.

• 12 billion gallons of ethanol were produced in Canada and the US in 2010.

This will grow to 36 billon gallons by 2020. Currently, the ethanol industry replaces 364 million barrels of imported oil each and every year in the USA and Canada.

• There are 8 million flex fuel vehicles already on the road, which is 3% of US vehicles.

We’re adding 800,000 to 1 million new flex fuel vehicles each year. There are already over 2,200 E85 and ethanol blender stations with over 60 E85/blender stations per month being installed.

• Ethanol creates jobs and is good for the economy.

A major study by the Windmill Group identifies 645,000 jobs created by ethanol in the USA and $92 billion.
After the film, they had a three-member panel including:

• Todd Becker, CEO of Green Plains
• Cecil Steward, Pres/CEO of The Joslyn Institute
• Lt. Gov Rick Sheehy

There was good discussion and interaction from the attendees. Lt. Gov. Sheehy was first to boast on Nebraska’s great position being the best situated for corn, ethanol and livestock production. The ethanol industry in Nebraska produces 2 billion gallons per year, which escalates into job creation, new technology and co-products to be used by livestock.

The discussion of first-, second- and third-generation biofuels was an important topic and Todd Becker explained how corn’s role is so important in that. In corn-ethanol production, one-third of the kernel is the starch used to make ethanol fuel, one-third is protein that is passed through to use in distillers grains to feed livestock, and the last one-third goes into CO₂. The role of second-generation biofuels comes into play in using the CO₂ to grow algae, for example, which is then able to make food, feed and fuel again.

For more on the film, watch the teaser below or go to www.thefreedomfilm.com.

Busting the 5 Myths of Ethanol: Myth #5

Every time an automobile commercial comes on T.V., a person can almost guarantee that the commercial will mention the vehicle’s fuel economy. Some get 24 miles per gallon, while others may get up to 40 miles per gallon. There is no doubt that a vehicle’s fuel economy is important, especially in times like today when we are paying over $3.50 just for a gallon of regular gasoline. In other words, everyone wants to get their “bang for their buck” when it comes to buying vehicles and fuel.

Talking about a vehicle’s fuel economy leads us to our final myth about ethanol, which is that automobile’s get lower gas mileage when using ethanol. You may be surprised but this myth is actually true. Studies have shown that vehicle’s that run on E85 may get up to 20% less mileage than vehicles that run on regular gasoline. This is not the case in all vehicles, and there are many factors that will change the fuel mileage such as the driver, the weather conditions, excessive braking or acceleration, driving uphill, etc. However, when looking at the price of gasoline compared to E85, E85 is priced up to 25% less expensive than regular gasoline. For many areas across the country, the fuel economy deficit is actually recovered by the cheaper fuel costs. As ethanol prices go down, E85 will become much cheaper than it is today, allowing consumers to spend less at the pump.

Research has also shown that ethanol can improve engine performance. Ethanol has a higher octane rating than gasoline, improving engine performance while also increasing power. If engines are downsized and E85 continues to become cheaper, it would lead to cost savings for the consumer. This in turn would make E85 the more favorable fuel compared to the other fuels that are being used today, even though it may get less mileage compared to gasoline.

We have finally busted the 5 myths about ethanol. As a person can see, ethanol is a true alternative fuel. It not only burns cleaner, but it is a cheaper fuel compared to regular gasoline. We have proven that 1) ethanol does NOT take more energy to produce than it yields 2) ethanol production does NOT reduce our food supply 3) GASOLINE produces MORE greenhouse gases than ethanol 4) ethanol requires LESS water now than it did several years ago and 5) although cars using ethanol get less fuel mileage, it is recovered by the CHEAPER costs of ethanol. These five busted myths prove that using ethanol will not only benefit us as consumers, but will also benefit the environment. Another perk about using ethanol is that it supports our own economy, instead of sending our money overseas to countries that don’t necessarily support the United States. Now that you know the truth about ethanol, feel free to start using more of it. You’re not just using a better fuel, but you're using a fuel made right here in America!

To learn more about Nebraska Corn Farmers or the ethanol industry, be sure the visit the Nebraska Corn Board’s website! Also be sure to check out the ethanol information video at Youtube!

Ethanol plays key role in fuel supply, helps lower prices

Want to pay nearly $100 to fill up your 15-gallon gas tank? You would if ethanol were removed from the market, according to a report (.pdf) by Xiaodong Du and Dermot J. Hayes at the Center for Agricultural and Rural Development at Iowa State University.

They said if ethanol production came to an immediate halt, under a very wide range of parameters, the estimated gasoline price increase would be of "historic proportions," ranging from 41 to 92 percent. At today's prices you'd be looking at $5.60-$7.60 per gallon gas without ethanol.

Economists are already concerned what $100 oil and $4 gas is doing to the economy. Just imagine the impact of $6.50 per gallon – or $97.50 for a 15-gallon fill up!

The researchers also looked at the impact of ethanol on fuel prices for 2010.

The more than 13 billion gallons of ethanol in the marketplace last year saved motorists, on average across the country, 89 cents per gallon in 2010. The lowest impact regionally was 58 cents per gallon in the East Coast, while motorists in the Midwest saved $1.37 per gallon (that's more than $20 for each 15-gallon fill-up). 

Considering oil and gas prices are higher this year than last, it will be interesting to see of the researchers will do an update using 2011 figures...certainly the savings numbers would be even more.

In addition to looking at just 2010, the researchers also looked at numbers from January 2000 to December 2010. For that 11-year period, the growth in ethanol production reduced wholesale gasoline prices by 25 cents per gallon on average across the country. Regionally, the Midwest saw the biggest impact, with a 39 cent per gallon reduction over that time period, while the East Coast had the smallest impact at 16 cents gallon.

The smaller impact over the 11-year period makes sense because if you look back to 2000, only 1.6 billion gallons of ethanol were produced – a very small percentage of the total fuel market. Ethanol production didn't surpass 2 billion gallons until 2002 and pass 6 billion gallons until 2007 and 10 billion gallons until 2009. The 13+ billion gallons of ethanol produced last year is about 10 percent of our fuel supply – and without we'd really see some pain at the pump.

Lincoln Earth Day to celebrate ethanol in Nebraska

By Kim Clark, Nebraska Corn Board Ag Program Manager

This Friday, April 22, marks the day Earth Day has been celebrated for the past 40 years. Many people pledge to help on Earth Day to secure a healthy environment for the future. This can be is done through environmental education, planting trees, water conservation, promoting a green environment, and more.

America’s corn farmers also help the environment every year. They have reduced greenhouse gas emissions, reduced nitrogen utilization, and grow more on less acres. The corn our farmers grow is used for food, feed, fuel, and fiber – all that from just one crop!

The starch portion of the corn kernel is used to make ethanol fuel, and the protein portion, a byproduct of the ethanol fuel, of the corn kernel is used to feed livestock -- beef, dairy, poultry, and pork. Ethanol, produced by America’s corn farmers, reduces our dependency on foreign oil, reduces greenhouse gas emissions, creates jobs in America, and promotes American agriculture. There are just some of the many ways America’s corn farmers are helping the Earth – which is an everyday habit for them.

In Nebraska, the Lincoln Earth Day event will be celebrated on Saturday, April 23 in Antelope Park at the Auld Recreation Center. The Nebraska Corn Board and Nebraska Ethanol Board are partnering together to promote ethanol. On display will be a flexible fuel vehicle (FFV) truck and blender pump. Blender pumps mix ethanol fuel together for use in FFVs. The fuel blends in blender pumps can be E10, 10% ethanol and 90% regular gasoline to E85, 85% ethanol and 15% gasoline.

Stop by our booth between 12:00 noon and 6:00 pm to learn more about ethanol fuel and FFVs and to show your support for America’s corn farmers!

Biofuels driving down dependence on foreign oil

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The United States’ dependence on foreign oil peaked in 2005 and increased fuel efficiency and the increased use of biofuels like ethanol will further drive down that dependence and the use of oil overall through 2030, according to a report published in January.

That report doesn’t come from an ethanol or corn organization, however.

It comes from BP. (Yes, that, that and that BP.) Specifically, BP’s Energy Outlook 2030, which you can download here (.pdf).

In the report, BP said biofuels production (largely ethanol) is expected to exceed 6.5 million barrels per day by 2030, up from 1.8 Mb/d in 2010 – contributing 30 percent of global supply growth over the next two decades, and all of the net growth in non-OPEC countries.

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After 2020, BP said, roughly 40 percent of global liquids demand growth will be met by biofuels – up from 13 percent in 2010 – with the U.S. and Europe leading consumption growth. By 2030, this figure approaches 60 percent.

In other words, biofuels and increased efficiencies will make oil the slowest-growing fuel over the next 20 years.

In the United States, the import share of oil and gas will fall to levels not seen since the 1980s, do in part to ethanol, which BP noted displaces oil imports. No, I’m not making that up. Here’s a shot of that bullet point from the report:

Still, global growth in liquids demand (oil, biofuels and other liquids) is projected to rise by 16.5 million barrels per day, exceeding 102 million barrels per day by 2030. That growth comes from rapidly-growing non-OECD economies. Think China, which is set to become the world's largest consumer of oil. Yet it’s more than China. It’s other parts of Asia, the Middle East and South and Central America, too.

Those countries who don’t develop strong biofuels markets will be stuck further under OPEC’s oil thumb. BP estimated that “the importance of OPEC is expected to grow,” with OPEC’s share of global oil production increasing from 40 percent in 2010 to 46 percent in 2030 – a level not reached since 1977.

Can we calculate the true cost of our dependence on oil?

An interesting article on the Huffington Post by Mark Engler asks that question – can we really calculate the true cost of our dependence on oil? The article covers oil spills and their associated costs ($167 per seagull, $300,000 for a killer whale)...and the lack of follow-through by the offenders.

It also discusses military costs to protect our access to oil – and the incredible tax breaks and "gushing subsidies" given to the oil industry.

Interestingly, there is a link in the article to a New York Times piece called "The real cost of gas: $5 a gallon," which was published 23 years ago today. (Gas was 99 cents at the time!)

While pointing out some of the costs policymakers and anti-biofuels zealots forget to include on the ledger, Engler notes: High-end estimates of the true costs of the gas we use come to over $15 per gallon. Taxpayers subsidize significant parts of this sum without even knowing it.

Click here to read the full article.

USDA: Roadmap reaffirms commitment to energy independence

The U.S. Department of Agriculture yesterday released a report that outlines both the current state of renewable transportation fuels efforts in America and a plan to develop regional strategies to increase the production, marketing and distribution of biofuels.

Agriculture Secretary Tom Vilsack noted that the current ethanol industry "provides a solid foundation to build upon and reach the 36 billion gallon goal. As we prepare to celebrate Independence Day, we must reaffirm our commitment to bring our country closer to complete energy independence and this report provides a roadmap to achieve that goal."

The current ethanol industry Vilsack is referring to is the corn ethanol sector, which will produce some 12 billion gallons of ethanol this year -- even though the capacity is 13.5 billion gallons and another 1.2 billion gallons of capacity are under construction. That should put corn ethanol right on target to produce 15 billion gallons of ethanol by by 2015 as noted in the Renewable Fuels Standard.

The 36 billion gallon goal Vilsack refers to is the entire biofuels that are to be produced by 2022 as part of the RFS (which, by the way, was included in the Energy Independence and Security Act of 2007 - get that? Energy Independence.).

Vilsack noted that continuing to advance biofuels will "create jobs, combat global warming, reduce fossil fuel dependence and lay a strong foundation for a strong 21st Century rural economy, and I am confident that we can meet the threshold of producing 36 billion gallons of biofuel annually by 2022."

The report identifies different biomass feedstocks to be utilized in developing biofuels and calls for the funding of further investments in research and development of:

• Feedstock;
• Sustainable production and management systems;
• Efficient conversion technologies and high-value bioproducts, and
• Decision support and policy analysis tools.

For more, click here for USDA's announcement or click here (.pdf) for the full report. It contains some good nuggets.

The indirect impact of our dependence on oil

Some regulatory agencies -- like the California Air Resources Board (CARB) and U.S. Environmental Protection Agency -- attempt to penalize biofuels for so-called "indirect impacts" like international indirect land use change.

In a recent letter, the Renewable Fuels Association (RFA) pointed out that EPA and CARB officials suggest biofuels are the only type of fuel that cause any noticeable indirect, market-mediated impacts.

"This is a laughable assertion," RFA said.

After all, by only singling out biofuels, EPA and CARB have overlooked all of the secondary impacts of our continued dependence on oil.

Instead of arguing point by point, RFA produced a photo that you can see by following the link above.

I've included two similar photos here as a reminder of some of those indirect impacts of our dependence on oil.

From RFA's "Say What?" Files:

CARB's Proposed Regulation to Implement the low carbon fuel standard: No other significant indirect effects [other than land use change] that result in large GHG emissions have been identified that would substantially affect the [low carbon fuel standard] framework for reducing the carbon intensity of transportation fuels.

The photos in this post tell a different story and are in the public domain - see here and here. They were taken in 1991 during the first Gulf War.

Ethanol reduces greenhouse gas emissions, oil use

The Nebraska Corn Board has distributed a news release about a study released by the University of Nebraska that shows advances in corn and ethanol production over the years have significantly improved the biofuel’s environmental performance and energy balance.

"It is just tremendous to have this peer-reviewed report back up what corn growers have been saying for some time. When examining ethanol production it is important to look at modern production practices for both growing corn and producing ethanol. You simply can’t look backwards," said Kelly Brunkhorst, ag program manager for the Nebraska Corn Board.

The report, available here for free and published in the Journal of Industrial Ecology, shows that corn ethanol directly emits an average of 51 percent less greenhouse gas than gasoline. That is as much as three times the reduction reported in earlier research. The publication is one of the top peer-reviewed journals for research on lifecycle analysis.

"Moreover, if the goal is to reduce dependence on imported oil, we estimate that the typical corn-ethanol system produces 13 gallons of ethanol for every gallon of petroleum-based fuel used in the production life cycle for corn ethanol," said Ken Cassman, director of the Nebraska Center for Energy Sciences Research and one of the report’s authors.

"Ethanol plants today don’t use near the amount of energy they did in the past. Many are also located in close proximity to livestock operations, which allows ethanol plants to reduce energy use even more by transporting wet distillers grains shorter distances than drying the corn co-product and shipping it further," Brunkhorst said.

As for corn production, crop genetics and agronomic management practices increase yields and the amount of corn produced versus the amount of fertilizer used. "Many more farmers today have also adopted conservation tillage practices that significantly reduce diesel fuel use by reducing the number of passes farmers make across the field each year," he said. "That too, is an important consideration when examining the efficiency of corn production and greenhouse gas reductions."

Some highlights of this study were initially highlighted by Cassman here.