Not My Dad’s Ethanol

by Jim Kendrick (Biofuels Digest) As I attended the 39th annual International Fuel Ethanol Workshop & Expo in Omaha, Nebraska held June 12-14, memories of dinner table lessons received as the son of an Ag Economics professor come back to mind. I was taught to doubt ‘70s Gasohol, now known as E10. Although a home-grown fuel, “It’s not economically viable,” my father used to tell us. ... Today, carbon economics have taken center stage, energy security has come back full circle, and ethanol’s production also pencils out financially although price supports remain in place. This is not my father’s ethanol.

Although Nebraska is the second largest ethanol producing state, Chris Billey, Senior Vice President of Regulatory Affairs at Growth Energy said, “oddly enough Nebraska has one of the lowest effective blend rates in the country, it’s well below 10%.” The recent E15 law signed by Governor Pillen seeks to change that ranking and overcome Nebraskans’ aversion to ethanol use in vehicles.

Geoff Cooper, President and CEO at Renewable Fuels Association (RFA) said, “We can’t rely on emergency E15 waivers every summer. That’s why we need Congress to pass legislation that removes this summertime barrier once and for all. RFA is looking for any and every opportunity to advance that legislation before year end. And get this, as a result of negotiations between RFA and the American Petroleum Institute, we even have the support of some of the big oil companies for this legislation.” Nationwide year round E15 use could increase ethanol blending by 5-7 billion gallons annually.

“The right policies could drive creative solutions like RFA’s plug-in hybrid electric flex fuel vehicle (FFV). We think this is the first plug-in hybrid flex fuel vehicle in the world. Nobody has done this. A plug-in hybrid FFV combines the best of both worlds.” “With a full tank of E85 and a full charge of battery this vehicle can travel about 430 miles, which is pretty good for, what, an 11 gallon tank?” “It combines low-carbon liquid fuel combustion engines along with a small battery powered electric motor.”

Lifecycle analysis validates the carbon benefit when ethanol displaces petroleum for transportation. And let’s not forget what else ethanol displaces when blended with gasoline. One of ethanol’s least appreciated benefits is its octane number, replacing more harmful octane boosting additives, such as lead and MTBE. According to The US Department of Energy’s Alternative Fuels Data Center, more than 98% of US gasoline contains ethanol.

Michael AuBuchon, Managing Director of Fuel Strategy and Management at Southwest Airlines described investing in cellulosic ethanol company SAFFiRE. “It’s a big move on our part. It’s the only investment that Southwest has made in our history outside of an airline acquisition which should tell you the significance that we place in its success.”

“SAFFiRE does not seek to replace the first generation ethanol production. I want to be very clear about that, we seek to augment it via co-location with those sites and all the benefits that that affords.”

Southwest has chosen, but not yet announced, the location of the host ethanol plant for SAFFiRE’s pilot cellulosic ethanol operation.

Although the nascent cellulosic industry holds great promise for the future, look for more opportunities in Gen 1 ethanol and its co-products. From sustainable aviation fuel to renewable chemicals such as bio-ethlyene, and high protein distillers grains that can compete with soy based products and break corn out of what has been the low value ruminant-limited market, corn ethanol producers have a sustainable business future. READ MORE