Higher ethanol blend benefits country

By Michael Ott

The opening of the 300-million-gallon dry mill plant at Archer Daniels Midland's Cedar Rapids facility is another success for the Iowa ethanol industry. The new dry mill will process an additional 100 million bushels of corn each year, or about 300,000 bushels of locally grown corn every day.

Iowa is the overwhelming leader in renewable energy production. Our state annually produces twice as much liquid fuel as we consume - 3.3 billion gallons of ethanol vs. 1.54 billion gallons of gasoline. Ethanol production technologies are improving, optimizing use of heat and water, while expanding to other feedstocks besides corn kernels.

Corn-based ethanol is a platform for other bio-based products, such as plastics, chemicals and advanced biofuels. Biofuels are a key component of our energy portfolio and a necessary outlet for more than a billion bushels of corn produced every year by Iowa farmers.

The main challenge facing the ethanol industry today is overcoming the blend wall facing corn ethanol producers. The Iowa Biotechnology Association and its members are working diligently on this issue.

In 2009, the United States produced 10.8 billion gallons of ethanol, which supported nearly 400,000 jobs, added

$53.3 billion to the gross domestic product and displaced the need for 364 million barrels of oil, according to a study by LECG, a global expert services and consulting firm.

The process for making ethanol has improved dramatically in the last 10 years. The energy balance for ethanol, which measures the amount of energy released versus energy inputs, has increased to 2.3 to 1, according to a recent USDA study. For comparison, gasoline's energy balance is 0.88 to 1.

Water usage is another key statistic. An Argonne National Lab study shows that corn-based ethanol requires 2.6 gallons of water for every gallon of fuel produced, as compared to 8 gallons of water for every gallon of gasoline produced. Iowa ethanol plants treat water before it is discharged and are excellent stewards of the environment.

Ethanol is a necessary component of gasoline. It adds oxygen to the fuel mixture. More oxygen helps the fuel burn more completely, thereby reducing the amount of harmful emissions from the tailpipe. Ethanol has been so successful as a component of our nation's fuel infrastructure that we are approaching the “blend wall.” The EPA arbitrarily decided that 10 percent of fuel could be comprised of ethanol, which is why nearly all gas stations in Iowa sell E10. Ethanol now makes up to 9.2 percent of the gasoline that we use every year and is expected to reach the 10 percent limit in early 2011. This artificially limits growth in the industry and needs to be increased.

Several studies have shown that E12 and E15 blends, made up of 12 percent and 15 percent ethanol, respectively, work well in automobiles. In Brazil, all fuel is at least 20 percent ethanol.

The EPA has twice delayed its decision on raising the blending limit. Reports indicate that the EPA will propose allowing E15 for 2007 and newer cars and E12 for 2001-2007 models. We believe this will be a confusing and expensive scenario that could actually cause decreased usage of biofuels. Consumers could be confused as to which fuels work best in their car and opt to avoid biofuels altogether. Gas station owners would have to install numerous new pumps to satisfy different demand levels.

We believe the EPA should move forward with universal approval of E12 and then move to E15.

Ethanol is a vital component of our agricultural and energy industries. Biofuels create local, permanent green jobs that benefit the environment while keeping energy dollars close to home. The growth of the ethanol industry is being artificially limited by the EPA's E10 restriction.

Michael Ott is the Associate Director of the Iowa Biotechnology Association. Comments: otterm@gmail.com