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The
growth of the ethanol industry means that ethanol will be entering the
fuel supply in new areas of the United States. In California alone, ethanol
has grown from being virtually absent just a few years ago to a demand
of nearly 1 billion gallons used in 2004.
In spite of the outstanding track record of ethanol
for our economy, our environment and our energy supply, some myths still
exist—and those who oppose the growth of renewable fuels many
times resurrect these myths in an attempt to discredit the ethanol industry.
For more than two decades, NCGA has been promoting the
development of the ethanol industry. Here are the facts that kill the
myths:
MYTH:
Ethanol raises the cost of gasoline. |
FACT:
While many predicted that the switch from MTBE to ethanol would increase
the price at the pump, the fact is that there has been no negative impact
on gasoline supplies or the cost per gallon of gasoline. Ethanol is
less expensive than other oxygenates and octane enhancers. In fact,
ethanol is also less expensive that ordinary gasoline.
The net effect of blending ethanol with gasoline is
actually a product that costs less—and that has been proven as
oil prices have escalated of late. A May 2005 report by the Consumer
Federation of America notes that drivers everywhere should be saving
as much as eight cents per gallon if petroleum marketers would simply
blend ethanol into more gasoline.
MYTH:
Ethanol actually adds to air pollution. |
FACT:
Because ethanol is inherently cleaner than gasoline, it emits less hydrocarbons,
nitrogen oxides, carbon monoxide and hydrogen. Ethanol reduces carbon
monoxide emissions by as much as 25 percent—and less carbon monoxide
helps reduce ozone formation and helps reduce levels of greenhouse gases.
According to EPA, gasoline is the largest source of
manmade carcinogens. Ethanol reduces overall toxic pollution by diluting
harmful compounds found in gasoline such as benzene and other aromatics.
MYTH:
Ethanol will harm car and truck engines. |
FACT:
Every major automobile
manufacturer approves the use of ethanol blends up to 10 percent (E-10
Unleaded) under warranty. In fact, many auto manufacturers go so far
as to recommend the use of clean, renewable fuels such as E-10 Unleaded.
Cars built since the 1970s are fully compatible with E-10 Unleaded.
In addition, ethanol in gasoline:
- Adds oxygen
to the fuel, thereby raising the air/fuel ratio for more complete
combustion;
- Eliminates the
need and expense of adding a gas line antifreeze, since the ethanol
in the gasoline absorbs more water than a small bottle of isopropyl;
- Prevents burning
of engine valves because ethanol burns cooler than gasoline;
- Prevents build-up
of olefins in fuel injectors, thus keeping the fuel system cleaner.
MYTH:
Ethanol takes more energy to produce than it contributes. |
FACT:
In June 2004, the U.S. Department of Agriculture updated its 2002 analysis
of the issue and determined that the net energy balance of ethanol production
is 1.67 to 1. For every 100 BTUs of energy used to make ethanol, 167
BTUs of ethanol is produced. In 2002, USDA had concluded that the ratio
was 1.35 to 1. The USDA findings have been confirmed by additional studies
conducted by the University of Nebraska and Argonne National Laboratory.
These figures take
into account the energy required to plant, grow and harvest the corn—as
well as the energy required to manufacture and distribute the ethanol.
The net energy balance
of ethanol production continues to improve because ethanol production
is becoming more efficient. For example, one bushel of corn now yields
2.8 gallons of ethanol—up from 2.5 gallons just a few years ago.
MYTH:
Ethanol contributes
to global warming. |
FACT:
Because the energy balance of ethanol production is positive (1.67 to
1), greenhouse gas benefits are also positive. The Argonne National
Laboratory has demonstrated that using ethanol produces 32 percent fewer
emissions of greenhouse gases than gasoline for the same distance traveled.
Ethanol also reduces
emissions of other harmful pollutants such as carbon monoxide—and
it dilutes and displaces components of gasoline that produce toxic emissions.
According to a recent
study by Smog Reyes: “Ethanol currently is the only compound that
can be blended with gasoline to help reduce global warming…”
MYTH:
Ethanol production wastes corn that could be used to feed a hungry
world. |
FACT:
Wet mill ethanol production facilities are also know as corn refineries—and
they also producer starch, corn sweeteners, and corn oil—all products
that are used as food ingredients for human consumption.
The corn used for
ethanol production is field corn typically used to feed to livestock.
Ethanol production also results in the production of distillers grains
and gluten feed—both of which are fed to livestock as well, helping
produce high quality meat products for distribution domestically and
abroad.
There is no shortage
of corn. In 2004, U.S. farmers produced a record 11.8 billion bushel
corn harvest—and some 1.4 billion bushels (about 13 percent) were
used in ethanol production. In other words, there is still room to significantly
grow the ethanol market without limiting the availability of corn. Steadily
increasing average corn yields and the improved ability of other nations
to grow corn also make it clear that ethanol production can continue
to grow without affecting the food supply.
MYTH:
Ethanol does not benefit farmers. |
FACT:
The ethanol industry opens a new market for corn growers, allowing them
to enjoy greater profitability. Studies have shown that corn prices
in areas near an ethanol plant tend to be five to 10 cents per bushel
higher than in other areas. This additional income helps cut the costs
of farm programs and helps add vitality to rural economies. And the
additional profit potential for farmers created by ethanol production
allows more farmers to stay in business—helping ensure adequate
food suppliers in the future.
Ethanol production
also creates jobs—many of them in rural communities where good
jobs are hard to come by. A January 2005 study by LECG found that the
ethanol industry powered the U.S. economy by creating more than 147,000
jobs, boosting U.S. household income by $4.4 billion and reducing the
U.S. trade deficit by $5.1 billion by eliminating the need to import
143.3 million barrels of oil.
Those kinds of numbers
help farmers—and all Americans.
Last
reviewed June 10, 2005
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