Corn Plays Major Role in Reducing America’s Dependence on Oil (4-17-06)

Geopolitical concerns drove crude oil futures to the $70 per barrel mark Monday, once again underscoring the importance of reducing U.S. dependence on foreign oil and increasing domestic energy production. According to the National Corn Growers Association (NCGA), U.S. corn will continue to play a major role in reducing America’s oil dependence by serving as a feedstock for ethanol, bioplastics, and a number of other renewable products.

Ethanol from corn has been a key contributor in extending the U.S. fuel supply. Ethanol plants produced almost 4 billion gallons in 2005, the equivalent of 3 percent of the nation’s gasoline supply. Today, 97 ethanol plants are operating with the capacity to produce nearly 4.5 billion gallons annually. Additionally, 33 ethanol plants are under construction and nine plants are undergoing expansions. By 2010, U.S. ethanol production will likely displace the equivalent of 311,000 barrels of imported crude oil per day—more than one large oil tanker per week.

“By adding billions of gallons of motor fuel to the U.S. energy complex, ethanol producers are helping the nation take major strides away from dependency on foreign oil,” said Bruce Noel, NCGA Ethanol Committee chairman. “Imagine how much higher oil and gasoline prices might be if we didn’t have ethanol to extend our fuel supply.”

Corn is also being used to displace petroleum in the plastics industry. Polylactic acid, or PLA, is a polymer derived from cornstarch and is being used by manufacturers across the country to produce plastic items such as cups, dinnerware, packaging, and even carpet and clothing.

“Just about anything that is made out of petroleum can be made out of corn,” Noel said. “And corn-based plastic products are better for the environment because they are recyclable and compostable.”

Corn may soon be displacing a host of other petroleum-derived products as well. Corn oil may serve as a future feedstock for biodiesel, and corn-based ethanol may one day be used to create high-value industrial chemicals. Additionally, ethanol’s widespread inclusion in aviation fuel and conventional diesel fuel may soon be a reality.

Also this week, NCGA Vice President of Public Policy Jon Doggett, American Farm Bureau President Bob Stallman and Renewable Fuels Association President Bob Dinneen will take part in a conference call with reporters to refute misinformation that ethanol is to blame for rising gas prices.

For a list of more than 600 products that are already being made from corn, go to NCGA’s Corn-Based Products Guide at www.ncga.com.