What is Ethanol?

     Ethanol is a clean-burning, high-octane fuel that is produced from renewable sources. At its most basic, ethanol is grain alcohol, produced from crops that contain high amounts of celluose. Because it is domestically produced, ethanol helps reduce America's dependence upon foreign sources of energy.

     Pure, 100% ethanol is not generally used as a motor fuel; instead, a percentage of ethanol is combined with unleaded gasoline. This is beneficial because the ethanol:      

• decreases the fuel's cost.
• increases the fuel's octane rating.
• decreases gasoline's harmful emissions.

Any amount of ethanol can be combined with gasoline, but the most common blends are:

E(10) - 10% ethanol and 90% unleaded gasoline

E10 is approved for use in any make or model of vehicle sold in the U.S. Many automakers recommend its use because of its high performance, clean-burning characteristics. In 2004, about one-third of America's gasoline was blended with ethanol, most in this 10% variety.

E(85) - 85% ethanol and 15% unleaded gasoline

E85 is an alternative fuel for use in flexible fuel vehicles (FFVs). There are currently more than 4 million FFVs on America's roads today, and automakers are rolling out more each year. In conjunction with more flexible fuel vehicles, more E85 pumps are being installed across the country. When E85 is not avaialble, these FFVs can operate on straight gasoline or any ethanol blend up to 85%

     It is important to note that it does not take a special vehicle to run on "ethanol". All vehicles can use E10 with no modifications to the engine. E85 is for use in a flexible fuel vehicle, so some people confuse "ethanol" with the blend of 85% ethanol and 15% gasoline.

Why use Ethanol?

Ethanol, the clean fuel:      

• Ethanol is a clean-burning fuel that reduces carbon monoxide and hydrocarbon tailpipe emissions.
• Ethanol is an oxygenate, and that oxygen allows it to burn more cleanly and more completely than gasoline.

Ethanol, the renewable fuel:      

• Ethanol is made from corn and other cellulosic material, renewable resources that derive their energy from the sun, rain, and soil.
• A new supply of ethanol can be "grown" each year, in contrast to the millions of years needed to produce fossil fuel-based energy sources.

Ethanol, the high performance fuel:      

• Pure 100% ethanol has an octane rating of 113, so adding 10% ethanol to gasoline raises the overal octane by 2 to 3 points.
• Ethanol has a lower BTU value than gasoline, meaning that ethanol burns cooler and is gentler on the vehicle's engine - less wear and tear leads to longer engine life.

Benefits

     The production and use of ethanol benefits our economy on all levels - local, state, and national. From the local communities where the crops are grown and processed to the metropolitan areas where drivers fill up with a domestically produced fuel, American-made ethanol propels the economy.

     In their 1997 study The Economic Impact of the Demand for Ethanol, Northwestern University's Kellogg School of Management found that:      

• During ethanol plant construction, approximately 370 local jobs are created.
• During ethanol plant operation, up to 4,000 local jobs are created.
• Ethanol plant construction creates $60 million to $130 million in additional income.
• Ethanol plant operation creates $47 million to $100 million in additional income.

     In their 2002 study Ethanol and the Local Community, AUS Consultants and SJH & Company found that:      

• With an approximate cost of $60 million for one year of construction, an ethanol plant expands the local economic base by $110 million each year.
• Ethanol production will generate an additional $19.6 million in household income annually.
• Tax revenue for local and state governments will increase by at least $1.2 million a year.
• Nearly 700 permanent jobs will be created in the area near an ethanol plant.

Agricultural Benefits

     Ethanol production and use benefit U.S. agriculture and leads rural economic development. Because it is made primarily from corn and other agricultural products, ethanol increases demand for these crops, increases the prices farmers receive for these crops, and brings economic development opportunity to the rural areas where the ethanol is made.

     Today, farmer-owned / locally-owned ethanol plants are driving the growth in the ethanol industry.      

• Of the 90 ethanol plants currently operating, just under half are owned by farmers and other local investors.
• Of the 20 ethanol plants under construction, at least half are farmer-driven projects.
• Taken as a whole, farmer-owned ethanol cooperatives represent the single largest producer of ethanol in the country with nearly 50% of the nation's ethanol production.
• Farmers who invest $20,000 in a local ethanol plant receive an average 13.3% per year on their investment over ten years.

Energy Independence

     American-made, renewable ethanol directly displaces crude oil we would need to import, offering our country critically needed independence and security from foreign sources of energy.

     Current U.S. ethanol production capacity of 4 billion gallons per year can reduce gasoline imports by more than one-third and effectively extends gasoline supplies at a time when refining capacity is at its maximum.

     According to the Energy Information Administration, the 7.5 billion gallon ethanol production level in the recently enacted Renewable Fuels Standard could reduce oil consumption by 80,000 barrels per day.

     Ethanol is key to reducing our country's trade deficit in crude oil, a figure that has been steadily increasing: $27 billion in 1987 up to $100 billion in 2002. The U.S. Commerce Department estimates that each $1 billion of trade deficit costs the U.S. 19,100 jobs.

Energy Dependence Facts      

• The U.S. imports about two-thirds of its oil, and some experts predict our dependence upon foreign crude could climb to 70% in the years to come.
• For every barrel of ethanol produced (1 barrel = 42 gallons), 1.2 barrels of petroleum are displaced at the refinery.
• In addition to importing record amounts of oil, the U.S. has also been importing record amounts of finished gasoline: 37 million gallons per day.
• U.S. fuel consumption increased from 12 billion gallons per year in 1970, to 160 billion gallons in 2002.

Environmental Benefits

     Fossil fuel-based gasoline is the largest source of man-made carcinogens and the number one source of toxic emissions, according to the U.S. EPA. Ethanol is a renewable, environmentally friendly fuel that is inherently cleaner than gasoline. Ethanol reduces harmful tailpipe emissions of carbon monoxide, particulate matter, oxides of nitrogen, and other ozone-forming pollutants.

     Ethanol is used in reformulated gasoline (RFG) as set out in the Clean Air Act Amendments of 1990. This standard requires an oxygenate, like ethanol, to be added to gasoline to help it burn more completely. Reformulated gasoline is required in areas that violate carbon monoxide and/or ozone quality standards.

     The use of ethanol-blended fuel helps reduce the environmental and economic impacts of gasoline consumption on our society.

Ethanol Facts:      

• Ethanol blends are likely to reduce carbon monoxide emissions in vehicles by between 10% - 30%, depending upon the combustion technology. (U.S. EPA)
• The American Lung Association of Metropolitan Chicago credits ethanol-blended fuel with reducing smog-forming emissions by 25% since 1990.
• The use of 10% ethanol blends reduces greenhouse gas emissions by 12-19% compared to conventional gasoline. (Argonne National Lab)
• n 2004, ethanol use in the U.S. reduced CO2-equivalent greenhouse gas emissions by approximately 7 million tons, equal to removing the emissions of more than 1 million cars from the road. (Argonne National Lab)
• Research shows a 35-46% reduction in greenhouse gas emissions and a 50-60% reduction in fossil energy use due to the use of ethanol as a motor fuel. (Argonne National Lab)
• Ethanol contains 35% oxygen, making it burn more cleanly and completely than gasoline.
• E85 has the highest oxygen content of any fuel available, making it burn even more cleanly and even more completely than any other fuel.
• E85 contains 80% fewer gum-forming compounds than gasoline.
• Ethanol is highly biodegradable, making it safer for the environment.