IFB Ethanol Blog

EWG doesn't like E15 blend proposal

EWG's review of available scientific data finds that such an increase in fuel ethanol content may involve multiple human health and safety hazards and a risk of increased air pollution. EPA cannot legally grant the waiver because there are far too many unresolved scientific questions about the impacts of E15 on engines, emission systems and air quality.

EWG's review has found that:

• A higher ethanol blend may damage non-road engines and emission control systems.
• Emissions from higher ethanol fuels may worsen health risks from air pollution.
• Extensive distribution of higher-ethanol fuel blends may pose new safety risks and higher fuel costs.
• Higher-ethanol fuel blends may compromise lifetime performance of non-flex fuel vehicles.

E-85 Still Growing

Although the big rush for permits to build ethanol plants in Illinois has slowed to a trickle, the number of flexible-fuel vehicles on the road that can use E85 is increasing.

And despite the fact that cheaper gasoline prices may somewhat have dampened enthusiasm for the generally less expensive E85, the number of facilities offering the ethanol-gasoline blend has grown since last year.

“The Illinois Environmental Protection Agency alternate fuels rebate program remains active,” said agency spokesman Maggie Carson. “There are a large number of E85-compliant vehicles, and people are continuing to use them and apply for rebates.”

Source: State Journal-Register

WASDE: Ethanol Demand Down

The Agriculture Department's World Agricultural Supply and Demand Estimates (WASDE) released today places corn used for ethanol production at 3.7 billion bushels, down 300 million bushels from the November estimate.

"The most dramatic change in the December WASDE report was the big drop in corn used for ethanol production," said Terry Francl, senior crops economist with the American Farm Bureau Federation (AFBF). "I am surprised that corn use for ethanol dropped by that much. Demand for ethanol is down, just like demand for gasoline is down, but I just don't think the decline is that large. I believe 3.8 billion bushels to 3.9 billion bushels is closer to the mark."

Download WASDEc08

New Study Touts Benefits of Ethanol Tax Credit

If ethanol is the “saving grace” for U.S. corn producers, as one economist suggests, then the federal ethanol tax credit has helped keep biofuels in a relative state of grace.

But the credit, which gives fuel marketers an incentive to blend ethanol into the nation’s gasoline, has fueled additional economic ripples, according to a new study released last week.

Energy analyst John Urbanchuk concluded the incentive, set to drop per gallon from the current 51 cents to 45 cents in 2009, has put an additional $66.2 billion into U.S. consumers’ pockets since 1978.

Download Urbanchuk on impact of Blenders credit 111808

Higher Ethanol Fuel Blends OK, But

Cars running on higher levels of ethanol than now permitted get poorer fuel mileage, but there is no significant impact on tailpipe emissions, according to a new government study.

Most cars and trucks can legally run on no more than 10 percent ethanol, but the government is looking at the impact of allowing higher-level blends to keep expanding use of the biofuel.

The Energy Department study, released Tuesday, looked at the impact of using blends of 15 percent to 20 percent ethanol. One concern the study did not alleviate is the impact on cars' emission controls. The researchers said that, at full throttle, increased ethanol content could heat some cars' catalytic converters. That's a concern because excess heat could damage the pollution control devices. The researchers said additional study was needed.

Thirteen popular car models, from 1999 to 2007, were included in the study, as well as 28 types of engines used in lawn equipment, generators and other machinery.

(Source: Des Moines Register)

Brazil to Expand Ethanol Production

The Wall Street Journal reported Tuesday that Brazil will bring on stream 25 to 30 new ethanol production units this year, compared to around 20 in 2007. The accelerated expansion, according to Alfred Szwarc, a director of Brazil's Sugar Cane Producer’s Association, Unica, is a response to rising domestic demand as the country's flex-fuel car fleet grows.

Verasun on wrong side of corn market

The Des Moines Register reported today that Verasun Energy Corp., which has several ethanol production plants in Iowa, expects to post a loss of as much as $103 million for the third quarter after being caught on the wrong side of a swing in the corn futures markets last summer.

The company said that it got out of its futures positions in corn last summer when the price reached a record $7.99 per bushel. Instead, Verasun made physical purchases of corn that have turned out to be higher than today’s prices and have resulted in unprofitable input costs for the company.

New Group Forms to Defend Ethanol

A new group is adding its voice to the debate on using crops to produce alternative fuels such as ethanol amid rising food prices and shortages in some countries.

The Alliance for Abundant Food and Energy in Washington D.C. was created by Archer Daniels Midland Co, DuPont Co, Deere & Co, Monsanto Co and the Renewable Fuels Association (www.foodandenergy.org).

Lugar Wants Ethanol Tariff Eliminated

Sen. Richard Lugar (R-Ind.) has sent a letter to President Bush urging him to eliminate the 54-cent ethanol duty on imported ethanol to ease corn demand. “To demonstrate leadership, the United States should lift its tariff on Brazilian ethanol that now shelters the U.S. industry,” the senator stressed.

Lugar said eliminating the tariff would provide more competition and a better biofuels market in the long term. Brazil can provide ethanol to our coasts more efficiently than from our 15-state heartland,” Lugar said. “It is expected that the food crisis will endure a number of years and could have lasting effects. A situation of such long duration threatens to reverse any positive trends in the alleviation of poverty and improvements in health.”

GM Expanding Flex Fuel Fleet

General Motors will offer 18 flexible fuel vehicles (FFVs) in model year 2009. The number of E85 compatible vehicle models available in 2009 is a sharp increase from the past following the group's commitment to making their line at least half E85 compatible by 2012.

The models cover the gamut from the four-cylinder Chevrolet HHR small crossover to the full-size Cadillac Escalade ESV luxury utility.

Below is the listing of 2009 models GM offers that include flex-fuel capability at no additional charge to the customer:

Chevrolet: Avalanche, Express, HHR, HHR Panel, Impala, Silverado, Suburban, Tahoe

GMC: Savana, Sierra, Yukon, Yukon XL

Cadillac:  Escalade, Escalade ESV, Escalade EXT

Hummer:   H2, H2 SUT

Buick:   Lucerne