The Potential of Ethanol    

Heidi Groth

            The Production of ethanol in the United States is reaching unprecedented levels.  In 2004 there were 3.4 billion gallons of ethanol produced in the nation, up from 2.81 billion gallons in 2003.  By the end of 2005 there was up to 4 billion gallons being produced and this dramatic growth shows no signs of stopping.  As of now there are 97 ethanol production facilities in the United States that are up and running, 31 that are under construction, and there are dozens more in various stages of planning.

Today nearly half of all ethanol plants in the U.S. are farmer-owned cooperatives and a large percentage of the facilities that are under construction are locally controlled as well.  Corn is the main feedstock for ethanol production in the U.S. with only a few exceptions. Ethanol can also be made from other products such as grain sorghum, wheat, barley, sugar cane or beets, cheese whey, and potatoes.

            Ethanol is definitely the key to reducing our country’s trade deficit in crude oil, a figure that has been steadily increasing: $27 billion in 1987 up to $100 billion in 2002. Currently the U.S. is importing over 4.8 billion barrels of oil which could be turned into 93.1 billion gallons of gasoline. Without our current ethanol production, an added $10 billion dollars would be going overseas instead of staying in our domestic economy. The U.S. Commerce Department estimates that each $1 billion of trade deficit costs the U.S. 19,100 jobs.

            Ethanol can’t be a cure all for the importation of oil. Replacing all imported oil would require over 310 million acres of corn when the U.S. is currently planting 81.8 million acres. Realistically Ethanol could reduce foreign oil dependence by 10 to 20%. Bear in mind that we currently import 25% of our crude oil from the highly unstable Mideast. 

Ethanol has also effectively extend gasoline supplies at a time when refining capacity is at its maximum due to last hurricane season’s damage. Ethanol plants essentially increase our production capacity of gasoline.

The production of ethanol benefits the economy on every level- local, state, and national.   From the local communities where the crops are grown and processed to the metropolitan areas where drivers fill up with a domestically produced fuel, American-made ethanol is a driving force behind the economy.  The production and use of ethanol benefit U.S. agriculture and help with rural economic development.  Ethanol has increased the demand for crops thus increasing the prices farmers receive.  The local price of corn increases by an average of 5-10 cents per bushel, adding significantly to farm income in the general area surrounding the plants. The USDA estimates that the Renewable Fuels Standard would double the demand for corn for ethanol production to 2 billion bushels per year by 2012.  The USDA also estimates the Renewable Fuels Standard would generate an additional $2 billion to $4 billion in net farm income by 2012.

Lastly, ethanol has the potential to impact the environment and help provide cleaner air.  Fossil fuel-based gasoline is the largest source of man-made carcinogens and the number one source of toxic emissions, according to the U.S. EPA. Ethanol is a renewable, environmentally friendly fuel that is inherently cleaner than gasoline. Ethanol reduces harmful tailpipe emissions of carbon monoxide, particulate matter, oxides of nitrogen, and other ozone-forming pollutants.  Ethanol is used in reformulated gasoline (RFG) as set out in the Clean Air Act Amendments of 1990. This standard requires an oxygenate, like ethanol, to be added to gasoline to help it burn more completely. Reformulated gasoline is required in areas that violate carbon monoxide and/or ozone quality standards.  The use of ethanol-blended fuel helps reduce the environmental and economic impacts of gasoline consumption on our society.

The production of ethanol clearly has the potential to bring about some very positive changes in the near future.  Production is on the rise and the benefits of ethanol will soon be showing by providing a better income for farmers, creating a larger job market, decreasing our dependence on foreign oil, and providing cleaner air.  What potential does ethanol hold for your future?