Ethanol fuel in the United States 5029525 218776989 2008-06-12T03:09:43Z Mariordo 4948354 moving table to sugar-based ethanol section {{Main|Biofuel in the United States|Ethanol fuel}} [[Image:EthanolPetrol.jpg|right||250px|thumb|Information on pump, California.]] Current interest in '''ethanol fuel in the United States''' mainly lies in bio-ethanol, produced from corn, but there has been considerable debate about how useful bio-ethanol will be in replacing fossil fuels in vehicles. Concerns relate to the large amount of arable land required for crops,<ref>[http://www.efrc.com/manage/authincludes/article_uploads/Deforestation%20diesel1.pdf Deforestation diesel – the madness of biofuel]</ref> as well as the energy and pollution balance of the whole cycle of ethanol production.<ref>Youngquist, W. Geodestinies, National Book company, Portland, OR, 499p.</ref><ref>[http://www.oilcrash.com/articles/pf_bio.htm The dirty truth about biofuels]</ref> Recent developments with [[cellulosic biofuel commercialization| cellulosic ethanol production and commercialization]] may allay some of these concerns.<ref>[http://news.bbc.co.uk/2/hi/science/nature/5353118.stm Biofuels look to the next generation]</ref> Ethanol currently constitutes only a small fraction of the United States' fuel supply, but domestic production capacity has more than doubled since 2001, to over 4.5 billion gallons per year. Most cars on the road today in the U.S. can run on blends of up to 10% [[ethanol fuel|ethanol]], and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. Portland, Oregon, recently became the first city in the United States to require all gasoline sold within city limits to contain at least 10% ethanol.<ref>[http://www.cleanedge.com/book/Introduction_The_Clean_Tech_Revolution.pdf Introduction: The Clean Tech Opportunity] p. 3.</ref> “Flexible-fuel” cars, trucks, and minivans can use gasoline and ethanol blends ranging from pure gasoline up to 85% ethanol ([[E85]]). By mid-2006, there were approximately six million E85-compatible vehicles on U.S. roads.<ref>Worldwatch Institute and Center for American Progress (2006)</ref> The Renewable Fuels Association counts 113 U.S. ethanol distilleries in operation and another 78 under construction. Ethanol production is likely to soar over the next several years, since the [[Energy Policy Act of 2005]] set a renewable fuels standard mandating 7.5 billion gallons of annual domestic renewable-fuel production by 2012. [[George W. Bush|President Bush]] eventually seeks to generate a western-hemisphere dominated industry that can produce as much as 35 billion gallons (130 billion liters) a year, equal to the entire world's production as of 2007.<ref>''Financial Times''. "Bush Signs Green Fuel Development with Brazil; " March 10-11, 2007</ref> Expanding ethanol industries provide jobs in plant construction, operations, and maintenance, mostly in rural communities.<ref>Worldwatch Institute and Center for American Progress (2006). [http://images1.americanprogress.org/il80web20037/americanenergynow/AmericanEnergy.pdf ''American energy: The renewable path to energy security'']</ref> ==History of Ethanol in the US== [[Image:New energy corp ethanol plant 002.jpg|thumb|right|200px|New energy corporation's 102 [[Million gallons per year|mmgy]] ethanol plant in South Bend, Indiana.]] In 1826, [[Samuel Morey]], experimented with a prototypical [[internal combustion]] engine that used ethanol (combined with [[turpentine]] and ambient air then [[vaporized]]) as fuel. At the time, his discovery was overlooked mostly due to the success of steam power. And while ethanol was known of for decades, it received little attention as a fuel until 1860 when [[Nicholas Otto]] began experimenting with internal combustion engines. In 1859, oil was found in [[Pennsylvania]] which provided a new supply of fuel for the United States. A popular fuel in the U.S. before [[petroleum]] was a blend of alcohol and turpentine called "[[camphene]]", also known as "burning fluid." With the discovery of a ready supply of oil, [[kerosene]]'s popularity grew. Gasoline containing up to 10% ethanol has been in increasing use in the United States since the late 1970s. In 2006, about 50 percent of the gasoline used in the U.S. and more than 85 percent of Hawaii’s gasoline contains ethanol <ref>[http://www.hawaii.gov/dbedt/ert/new-fuel/ New-Fuel.com - Hawaii's Transition to Ethanol-Blended Fuel<!-- Bot generated title -->]</ref> ==Current trends== {| class="wikitable" style="float: right; margin-left: 10px" ! colspan="4" align=center style="background-color: #ccffcc;" | U.S. fuel ethanol <br/>production and imports <br/> (2001-2007)<ref name="RFA1E"/><br /><small>(Millions of [[gallon|U.S. liquid gallons]])</small> |- ! style="background-color: #ccffcc;" | Year ! style="background-color: #ccffcc;" | Production ! style="background-color: #ccffcc;" | Imports ! style="background-color: #ccffcc;" | Demand |----- | align="right" | 2001 || align="right" | 1,770|| align="right" | n/a || align="right" | n/a |----- | align="right" | 2002 || align="right" | 2,130|| align="right" | 46 || align="right" | 2,085 |----- | align="right" | 2003 || align="right" | 2,800|| align="right" | 61 || align="right" | 2,900 |----- | align="right" | 2004 || align="right" | 3,400|| align="right" | 161 || align="right" | 3,530 |----- | align="right" | 2005 || align="right" | 3,904|| align="right" | 135 || align="right" | 4,049 |----- | align="right" | 2006 || align="right" | 4,855|| align="right" | 653 || align="right" | 5,377 |----- | align="right" | 2007 || align="right" | 6,500 || align="right" | 450 || align="right" | n/a |----- | colspan="4" align=left |<small>Note: Demand figures includes stocks change<br/> and small exports in 2005</small> |} The world's top ethanol producers in 2006 were the United States with 4.855 billion [[gallon|U.S. liquid gallons]] and Brazil with 4.49 bg.<ref name="RFA1E">{{cite web|url=http://www.ethanolrfa.org/industry/statistics/#E|title=Industry Statistics: Annual World Ethanol Production by Country|publisher=Renewable Fuels Association|date= |accessdate=2008-05-02|language= }}</ref> The United States, together with Brazil accounted for 70 percent of all ethanol production, with total world production of 13.5 billion gallons (40 million tonnes). When accounting just for fuel ethanol production in 2007, the U.S. and Brazil are responsible for 88% of the 13.1 billion gallons total world production. By 2007, the U.S. ethanol production industry consisted of 115 plants operating in nineteen states. The nearly 7 billion gallons production of these plants was a 38% increase over the previous year, and surpassed Brazil as the worlds largest ethanol producer in 2005.<ref>[http://www.ethanolrfa.org/industry/statistics/ RFA - The Industry - Industry Statistics<!-- Bot generated title -->]</ref> Dozens more plants are under development and due to come on line in 2008 and 2009, increasing U.S. production capacity to nearly 12 billion gallons.<ref name=fact>[http://www.ethanol.org/pdf/contentmgmt/2007_Ethanol_Fact_Book.pdf Ethanol Fact Book]</ref> Most cars on the road today in the U.S. can run on blends of up to 10% [[ethanol fuel|ethanol]], and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. In 2007, Portland, Oregon, recently became the first city in the United States to require all gasoline sold within city limits to contain at least 10% ethanol.<ref>[http://postcarboncities.net/node/192 Portland requires stations to sell biofuels, giving farmers a boost | Post Carbon Cities<!-- Bot generated title -->]</ref><ref>[http://www.cleanedge.com/book/Introduction_The_Clean_Tech_Revolution.pdf Introduction: The Clean Tech Opportunity] p. 3.</ref> As of January 2008, three states - Missouri, Minnesota, and Hawaii - require ethanol to be blended with gasoline motor fuel. Many cities are also required to use an ethanol blend due to non-attainment of federal air quality goals.<ref>3 states, many cities: [http://www.npr.org/templates/story/story.php?storyId=17720583]</ref> [[Ford Motor Company|Ford]], [[DaimlerChrysler]], and [[General Motors Corporation|GM]] are among the automobile companies that sell “[[Flexible-fuel vehicle|flexible-fuel]]” cars, trucks, and minivans that can use gasoline and ethanol blends ranging from pure gasoline up to 85% ethanol ([[E85]]). By mid-2006, there were approximately six million E85-compatible vehicles on U.S. roads.<ref>Worldwatch Institute and Center for American Progress (2006). [http://images1.americanprogress.org/il80web20037/americanenergynow/AmericanEnergy.pdf ''American energy: The renewable path to energy security'']</ref> The Renewable Fuels Association counts 113 U.S. ethanol distilleries in operation and another 78 under construction, with capacity to produce 11.8 billion gallons within the next few years. The Energy Information Administration (EIA) predicts in its Annual Energy Outlook 2007 that ethanol consumption will reach 11.2 billion gallons by 2012, outstripping the 7.5 billion gallons required in the Renewable Fuel Standard that was enacted as part of the Energy Policy Act of 2005.<ref>[http://www.bio.org/ind/biofuel/CellulosicEthanolIssueBrief.pdf Industrial Biotechnology Is Revolutionizing the Production of Ethanol Transportation Fuel]</ref> Expanding ethanol (and biodiesel) industries provide jobs in plant construction, operations, and maintenance, mostly in rural communities. According to the [[Renewable Fuels Association]], the ethanol industry created almost 154,000 U.S. jobs in 2005 alone, boosting household income by $5.7 billion. It also contributed about $3.5 billion in tax revenues at the local, state, and federal levels.<ref>Worldwatch Institute and Center for American Progress (2006). [http://images1.americanprogress.org/il80web20037/americanenergynow/AmericanEnergy.pdf ''American energy: The renewable path to energy security'']</ref> ==Reduced petroleum imports and costs== One rationale given for extensive ethanol production in the U.S. is its benefit to [[energy security]], by shifting the need for some foreign-produced oil to domestically-produced energy sources.<ref> http://ethanol.org [http://ethanol.org/pdf/contentmgmt/Energy_Security_Issue_Brief.pdf Energy Security]</ref> Production of ethanol requires significant energy, but current U.S. production derives most of that energy from coal, natural gas and other sources, rather than oil.<ref> http://www.ethanol.org [http://www.ethanol.org/pdf/contentmgmt/Science_Journal_January_2006.pdf Ethanol Can Contribute to Energy and Environmental Goals]</ref> Because 66% of oil consumed in the U.S. is imported, compared to a net surplus of coal and just 16% of natural gas (2006 figures),<ref> http://www.eia.doe.gov [http://www.eia.doe.gov/neic/brochure/infocard01.htm Energy INFOcard]</ref> the displacement of oil-based fuels to ethanol produces a net shift from foreign to domestic U.S. energy sources. According to a 2008 analysis by Iowa State University, the growth in US ethanol production has caused retail gasoline prices to be US $0.29 to US $0.40 per gallon lower than would otherwise have been the case.<ref>[http://www.renewableenergyworld.com/rea/news/infocus/story?id=52564 Ethanol Lowers Gas Prices 29-40 Cents Per Gallon]</ref> ==Cellulosic ethanol== In his [[State of the Union Address]] on [[January 31]], [[2006]], President [[George W. Bush]] stated, “We'll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks or [[switchgrass]]. Our goal is to make this new kind of ethanol practical and competitive within six years.” The [[U.S. Department of Energy]] released a report on [[July 7]], [[2006]] with an ambitious new research agenda for the development of cellulosic ethanol as an alternative to gasoline. The 200-page [[Technology roadmap|scientific roadmap]] cites recent advances in [[biotechnology]] that have made cost-effective production of ethanol from cellulose, or inedible plant fiber, an attainable goal, with [[subsidy|federal loan guarantees]] for new cellulosic [[Biorefinery|biorefineries]]. The report outlines a detailed research plan for developing new technologies to transform cellulosic ethanol - a renewable, cleaner-burning, and [[carbon offset|carbon-neutral]] alternative to gasoline - into an economically viable transportation fuel. <!-- [[[250 gallons is a very small number, less than 1000 liters.]]] Included is a mandate to produce 250 gallons of cellulosic ethanol by 2013. --> The Department of Energy has invested in research on [[enzyme|enzymatic]], [[Thermal depolymerization|thermochemical]], [[Hydrolysis|acid hydrolysis]], hybrid hydrolysis/enzymatic, and a variety of other approaches toward achieving success in discovering an efficient and low cost method of converting cellulose to ethanol. President Bush's [[United States federal budget, 2007|2007 budget]] earmarked $150 million for the research effort - more than double the 2006 budget in favor of the cellulosic lobby. Taxpayers and consumers are already shouldering part of the cost: each gallon of ethanol sold is subsidized by a 51-cent/gallon federal tax credit paid to U.S. producers.<ref>''Financial Times''. "Bush Signs Green Fuel Development with Brazil; " [[March 10]]-11, 2007, p.3.</ref> These subsidies, along with state incentive programs, cost the nation over $2 billion a year, leading legislators to pledge to invest in cellulosic ethanol. Another dampening factor is the short term loss of income to American refiners of crude oil. The U.S. market is especially lucrative, sometimes earning its refiners $30 or more on every barrel of crude oil they refine. [[Exxon Mobil Corp.]] earned $1.3 billion in its refining arm in the second quarter, up 11% from a year before. The expectation, over the long run, is that the U.S. economy would more than earn its share back if our primary source of energy were manufactured and processed in the United States, but individual companies could be adversely affected. == Sugar-based ethanol == {| class="wikitable" style="float: right; margin-left: 10px" ! colspan="6" align=center style="background-color: #ccffcc;" | {{U.S.}} fuel ethanol <br/>imports by country (2002-2007)<ref name="RFA1E"/><br /><small>(Millions of [[gallon|U.S. liquid gallons]])</small> |- ! style="background-color: #ccffcc;" | Country ! style="background-color: #ccffcc;" | 2007* ! style="background-color: #ccffcc;" | 2006 ! style="background-color: #ccffcc;" | 2005 ! style="background-color: #ccffcc;" | 2004 ! style="background-color: #ccffcc;" | 2003 |----- | align="left" | {{BRA}} || align="right" | 188.8|| align="right" | 433.7|| align="right" | 31.2 || align="right" | 90.3|| align="right" |0 |----- | align="left" | {{JAM}} || align="right" | 75.2|| align="right" | 66.8 || align="right" | 36.3|| align="right" | 36.6|| align="right" | 39.3 |----- | align="left" | {{ESA}} || align="right" | 73.3|| align="right" | 38.5 || align="right" | 23.7|| align="right" | 5.7|| align="right" | 6.9 |----- | align="left" | {{flag|Trinidad and Tobago}} || align="right" | 42.7|| align="right" | 24.8 || align="right" | 10.0|| align="right" | 0|| align="right" | 0 |----- | align="left" | {{CRI}} || align="right" | 39.3|| align="right" | 35.9|| align="right" | 33.4|| align="right" | 25.4|| align="right" | 14.7 |----- | colspan="6" align=left |<small>*Note: 2007 figures through November only.</small> |} Technologically, the process of producing ethanol from sugar is simpler than converting corn into ethanol. Converting corn into ethanol requires additional cooking and the application of enzymes, whereas the conversion of sugar requires only a yeast fermentation process. The energy requirement for converting sugar into ethanol is about half that for corn. A 2006 USDA report found that at the current market prices for ethanol, converting sugarcane, sugar beets and molasses to ethanol would be profitable.<ref>“The Economic Feasibility of Ethanol Production from Sugar in the United States” 2006 [[United States Department of Agriculture]] http://www.usda.gov/oce/EthanolSugarFeasibilityReport3.pdf.</ref> Sugarcane production in the United States occurs in [[Florida]], [[Louisiana]], [[Hawaii]], and [[Texas]]. The first three plants to produce sugar cane-based ethanol are expected to go online in Louisiana by mid 2009. Sugar mill plants in [[Lacassine, Lousiana|Lacassine]], [[St. James Parish, Louisiana|St. James]] and [[Bunkie, Louisiana|Bunkie]] were converted to sugar cane-based ethanol production using [[Colombia]]n technology in order to make possible a profitable ethanol production. These three plants will produce 100 million gallons of ethanol within five years.<ref>{{cite web|url=http://www.miamiherald.com/news/americas/story/562380.html|publisher=Miami Herald|author=Gerardo Reyes|title=Colombians in U.S. sugar mills to produce ethanol|date=2008-06-08|accessdate=2008-06-11|language=}}</ref> In March 2007, "ethanol diplomacy" was the focus of President [[George W. Bush]]'s Latin American tour, in which he and Brazil's president, [[Luiz Inacio Lula da Silva]], were seeking to promote the production and use of sugar cane based ethanol throughout the [[Caribbean Basin]]. The two countries also agreed to share technology and set international standards for biofuels.<ref name="WasPos1">{{cite web |url=http://www.washingtonpost.com/wp-dyn/content/article/2007/02/22/AR2007022201361.html |title=Latin America -- the 'Persian Gulf' of Biofuels? |publisher=The Washington Post|author= Marcela Sanchez |date=2007-02-23 |accessdate=2008-05-03|language= }}</ref> The Brazilian sugar cane technology transfer will permit various [[Central American]], such as [[Honduras]], [[El Salvador]], [[Nicaragua]], [[Costa Rica]] and [[Panama]], several [[Caribbean]] countries, and various [[Andean Community of Nations|Andean Countries]] tariff-free trade with the U.S. thanks to existing concessionary trade agreements. The expectation is that using Brazilian technology for refining sugar cane based ethanol, such countries could become exporters to the United States in the short-term.<ref>{{cite web |url=http://www.nytimes.com/2007/03/03/business/worldbusiness/03ethanol.html?scp=1&sq=Bush+Brazil+ethanol&st=nyt |title=U.S. and Brazil Seek to Promote Ethanol in West |publisher=The New York Times |author= Edmund L. Andrews and Larry Rother|date=2007-03-03 |accessdate=2008-04-28|language= }}</ref> In 2007, [[Jamaica]], [[El Salvador]], [[Trinidad & Tobago]] and [[Costa Rica]] exported together to the U.S. a total of 230.5 million gallons of sugar cane-based ethanol, representing 54.1% of U.S. fuel ethanol imports. [[Brasil]] began exporting ethanol to the U.S. in 2004 and exported 188.8 million gallons representing 44.3% of U.S. ethanol imports in 2007. The remaining imports that year came from [[Canada]] and [[China]].<ref name="RFA1E"/> ==See also== *[[2007 U.S. Farm Bill]] *[[Renewable energy in the United States]] *[[E85 in the United States]] *[[Ethanol fuel in Australia]] *[[Ethanol fuel in Brazil]] *[[Ethanol fuel in the Philippines]] *[[Ethanol fuel in Sweden]] *[[List of renewable energy topics by country]] ==References== {{Reflist}} ==External links== {{EnergyPortal}} * [http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/EXTWDR2008/0,,contentMDK:21501336~pagePK:64167689~piPK:64167673~theSitePK:2795143,00.html World Bank, Biofuels: The Promise and the Risks. World Development Report 2008: Agriculture for Development] *[http://www.ethanolrfa.org Renewable Fuels Association web site] *[http://www.ncga.com/ethanol/debunking/index.htm Debunking Pimentel: Ethanol - Efficient Fuel] *[http://petroleum.berkeley.edu/papers/patzek/CRPS416-Patzek-Web.pdf Thermodynamics of the Corn-Ethanol biofuel cycle, T.Patzek] [[Category:Biofuel in the United States]] [[Category:Ethanol fuel]]