New Research Backs Corn Ethanol as Economic, Environmental Solution (4-21-08)

Two new studies released today show yet again how corn ethanol production boosts the economy while helping protect the environment, the National Corn Growers Association (NCGA) pointed out – an important consideration at a time when our country faces challenges on both fronts. The reports looked at consumer savings due to a localized renewable fuels standard and improved environmental efficiency of ethanol production overall.

“This is the sort of research that really makes the case for ethanol production,” NCGA President Ron Litterer said. “Corn growers are proud to be an important part of an industry that helps the consumer and protects the environment.”

First, at the Missouri State Capitol today, a study was released that confirms Missouri drivers are saving money at the pump thanks to ethanol. Research by John Urbanchuk, of the economic consulting service LECG, concluded that drivers in Missouri are expected to save an average of 9.8 cents per gallon due to the 10 percent ethanol standard that went into effect this year in Missouri. Extrapolated to reflect that Missouri drivers used over 2.9 billion gallons of gasoline in 2007, the research means statewide savings to consumers of more than $285 million in 2008.

The savings and projections in the Missouri study were estimated using 2007 gasoline price data at the rack and retail levels for Missouri published by the U.S. Department of Energy’s Energy Information Administration (EIA) and ethanol price data published weekly by the U.S. Department of Agriculture.  Gasoline and ethanol price projections were estimated using information published by EIA in its 2008 Annual Energy Outlook. The study was supported by the Missouri Corn Merchandising Council.

Secondly, a new analysis of America’s ethanol industry shows dramatic efficiency gains in ethanol production have been made in a short period of time.  According to an analysis conducted by the Argonne National Laboratory, American ethanol facilities are using less energy and water than just five years ago while producing more ethanol.
   
The Argonne analysis compares ethanol industry data from 2001 to 2006.  In 2001, U.S. ethanol production was 1.77 billion gallons.  In 2006, U.S. ethanol production was 4.9 billion gallons, an increase of 276 percent.  During this period of production growth, the Argonne analysis shows significant improvement for ethanol’s already green footprint.  In the past five years, according to the analysis, water consumption decreased 26.6 percent, grid electricity use declined 15.7 percent and total energy use declined 21.8 percent.

Click here for more information on the Missouri economic savings report.

Click here for the complete Argonne analysis.