A Strong Voice in Indiana
by Jim Dukart (Ethanol Producer Magazine) … Ethanol plants in Indiana account for some 600 jobs, with an additional 4.9 jobs created for every job at an ethanol plant. The industry has pumped $1.5 billion in direct capital into the state since 2006, contributing to a $520 million increase in gross state product, along with $47 million in taxes paid into state coffers.
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A key initiative has been working on fuel infrastructure issues and encouraging retailers to distribute ethanol-blended fuels. “The last numbers I saw indicate there are over 200 locations that retail E85 in the state of Indiana,” Parrent (Ken Parrent, biofuels director at the Indiana Corn Marketing Council) says, adding that retailers are looking to expand E85 offerings and some are considering E15. “I get the sense that E85, despite all the negative publicity it has had, is catching on. Where it is priced competitively, the consumer has been willing to step up and buy it.”
He also sees promise in the dual challenge automakers face, meeting fuel economy standards and greenhouse gas emissions standards set by the U.S. EPA. “I think they are or will be amenable to looking at whatever fuels can accomplish both tasks,” Parrent says, citing ethanol as a fuel that can.
As to the Big Oil argument that gasoline usage and overall miles driven has been declining, Parrent observes wryly that in an economic downturn such as the past several years, a $50 tank of gasoline became a purchase many consumers started thinking about for perhaps the first time, changing their driving habits to fit the new economy. An economy on the mend, Parrent contends, could well lead to more miles driven and greater fuel consumption. “The mileage outlook has been perking up quite a bit,” he says. “Maybe we have seen the bottom of that trend.”
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Greg Noble is chief operating officer of both the ICMC and ICGA. … His role at both organizations is to manage the rollout of all marketing and research programs. One that he has been closely involved with is the American Ethanol partnership with NASCAR.
That affiliation, launched in the 2011 NASCAR season by Growth Energy and the National Corn Growers Association, seeks to broaden consumer awareness of the environmental and performance benefits of using E15. …
ICMC also works to increase the demand for ethanol by promoting the use of check-off funds for retail blender pump placement, and the conversion and promotion of distillers grains in animal nutrition. Noble also has his eye on the use of corn stover for next generation biofuels, and the organizations also support the Indiana livestock industry. “We provide an excellent feedstock for the animals,” he says. “Their success is good for Indiana agriculture as well.”
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(David) Howell has been active in ICMC’s Flex Fuel Pump Grant Program, which offers selected fueling stations up to 50 percent or $20,000 (whichever is less) toward the purchase and installation of ethanol blender pumps, hardware and storage tanks, or for the conversion of existing pumps to handle ethanol blends. It has been successful in converting several Indiana stations, but Howell is well aware that challenges remain. Among them, is independent fueling stations’ lack of familiarity with what he calls the “overly complicated” renewable identification number (RIN) process.
“We’ve had some success, but the big obstacle is still Big Petroleum, which does things like try not to allow us under the canopy [at a fueling station],” Howell notes. “They are still like big bullies on the playground trying to push us around.”
Bullying or not, Howell is optimistic about Indiana ethanol prospects overall. He thinks the industry should focus on export markets, citing both Mexico and China as examples of opportunities for growth. “Any place that has a lot of pollution, and can use a cleaner-burning fuel, we should be very popular there,” Howell says. ICMC, also funds research into new vertical markets for ethanol, he adds, noting in particular research with Purdue and other area Indiana universities to develop grain and or cellulosic ethanol for use as jet fuel for the aviation industry.
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Ethanol, deserves a place at the table in discussing future automotive design, (Mike) Nichols says. “We do see ethanol playing a role in increasing fuel mileage without increasing the body weight or chassis design, and it also burns cleaner.”
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Nichols is also bullish on ethanol’s future, both in Indiana and nationwide. “From the reports I am seeing, plants are starting to re-open,” he says “We are seeing a future, and the potential for ethanol as a larger share of the fuel market. There are opportunities both in the U.S. and in export markets. We can expand into other markets.” READ MORE