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Ethanol and Sustainability

 Plain Green Conference
               Sioux Falls, SD

   Brian Jennings, Executive Vice Pres...
About ACE   •   Public Policy


            •   Market Development


            •   Public Relations &
                Co...
Outline
• General overview of ethanol production and use.



• Producing and using ethanol in a way that does
  not compro...
2007 Energy Bill
                                                   $100 + oil




                                       ...
About 60% of RFS from
advanced biofuels.
Use of Fuel Ethanol
• E10 – path of least resistance.




• E85 – 200 million cars on road, only 6 million FFVs.
  1600 E8...
Timely Challenges

• Volatility




• PR issues; “food v. fuel,”
  land use changes, “good v. bad ethanol”
Factors impacting food prices
 Oil and energy prices – primary culprit - 80 cents of retail food
  dollar.


 Unpreceden...
Price Check: Oil vs. Corn
                                    1949       2008          % Increase

     Oil               ...
Record corn exports in 07/08




 90% of U.S. corn exports used by other countries to feed livestock.
Distillers grains from ethanol concentrate
           nutrients for valuable livestock feed




Source: 2008 Feedstuffs Re...
Corn: 1944 vs. 2007

     Year       Harvested      Average      Production
                  Acres          Yield
     19...
More corn per acre…
…and doing so with less fertilizer.
Conservation practices on the rise
                                   NO-TILL ACRES AS % OF REPORTING ACRES
              ...
U.S. cropland erosion




Source: NRCS
Ethanol’s Decidedly
          Positive Energy Balance




Btu of ethanol minus fossil energy used to make the ethanol
Ethanol’s Decidedly
          Positive Energy Balance




                                                                ...
Climate Change Legislation to reduce




                         Energy includes transportation, coal (electricity), and ...
Contributing to Global Warming?
      • Accusing ethanol of Brazil
      deforestation and global warming.

      • Amazon...
U.S. ethanol production has
grown since 2004….




                              and deforestation
                       ...
Ethanol replaces the incremental gallon of fuel,
increasingly from environmentally damaging
sources…




  Research indica...
Ethanol Efficiencies
   • Energy use decreased 21.8% from 2001 to 2006.

   • 37% of the dried distillers grains with solu...
20%                                     Greenhouse gas reduction
                Reduction 28%
                          R...
In conclusion…

• It is inescapable; our status quo reliance on
  fossil & foreign fuel is not a viable option.


• Ethano...
www.ethanol.org
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Brian Jennings on Ethanol

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Transcript of "Brian Jennings on Ethanol"

  1. 1. Ethanol and Sustainability Plain Green Conference Sioux Falls, SD Brian Jennings, Executive Vice President American Coalition for Ethanol (ACE) September 26, 2008
  2. 2. About ACE • Public Policy • Market Development • Public Relations & Communications • Grassroots Member Empowerment
  3. 3. Outline • General overview of ethanol production and use. • Producing and using ethanol in a way that does not compromise the environment or our food supply.
  4. 4. 2007 Energy Bill $100 + oil 2005 Energy Bill RFS & MTBERFS MTBE Clean Air Act Clean Air Act Amdts Public policies and market forces help drive demand for ethanol.
  5. 5. About 60% of RFS from advanced biofuels.
  6. 6. Use of Fuel Ethanol • E10 – path of least resistance. • E85 – 200 million cars on road, only 6 million FFVs. 1600 E85 pumps, around 170,000 stations. Once we supply the E10 market…..E85 and… • Other blends - E15, E20, E30, etc? Most pressing issue facing the ethanol industry today, beyond E10.
  7. 7. Timely Challenges • Volatility • PR issues; “food v. fuel,” land use changes, “good v. bad ethanol”
  8. 8. Factors impacting food prices  Oil and energy prices – primary culprit - 80 cents of retail food dollar.  Unprecedented demand (growing dietary needs of China, India)  Crop failures & poor crops (drought)  Speculative investing in commodities  Weak U.S. dollar  Export restrictions (Argentina, Russia, etc)
  9. 9. Price Check: Oil vs. Corn 1949 2008 % Increase Oil $2.54/barrel $125/barrel 4821% Corn $1.24/bu $6.13/bu 394% • Oil is in everything. • Average food item travels 1500 miles before reaching grocery store. Sources: National Farmers Union, USDA
  10. 10. Record corn exports in 07/08 90% of U.S. corn exports used by other countries to feed livestock.
  11. 11. Distillers grains from ethanol concentrate nutrients for valuable livestock feed Source: 2008 Feedstuffs Reference Issue; Ingredient Analysis Table. RFA
  12. 12. Corn: 1944 vs. 2007 Year Harvested Average Production Acres Yield 1944 85 million 33 bu / 2.8 B bu acre 2007 85 million 151 bu / 13.1 B bu acre Nearly 400% increase in production without increasing acres in last 60 years. Source: NCGA
  13. 13. More corn per acre…
  14. 14. …and doing so with less fertilizer.
  15. 15. Conservation practices on the rise NO-TILL ACRES AS % OF REPORTING ACRES 40% 31.50% % of Reported Acres 30% 26.50% 24.60% 25.30% 21.20% 20.90% 21.60% 20% 15.20% 10% 7.40% 0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: Conservation Technology Information Center
  16. 16. U.S. cropland erosion Source: NRCS
  17. 17. Ethanol’s Decidedly Positive Energy Balance Btu of ethanol minus fossil energy used to make the ethanol
  18. 18. Ethanol’s Decidedly Positive Energy Balance g an W ons / ET w mpti ntel GRE Pime Assu Btu of ethanol minus fossil energy used to make the ethanol
  19. 19. Climate Change Legislation to reduce Energy includes transportation, coal (electricity), and other manufacturing. Source: Global Insight
  20. 20. Contributing to Global Warming? • Accusing ethanol of Brazil deforestation and global warming. • Amazon clearing decreased 67% since 2004, while U.S. ethanol production doubled in the same time. • In 2007, U.S. ethanol production reached all-time high while Amazon clearing fell to 20-year low. Causes of Amazon deforestation*: Brazil cattle/meat industry 60% Subsistence agriculture 30% *Source: Natl Institute of Space Research
  21. 21. U.S. ethanol production has grown since 2004…. and deforestation in Brazil has declined during the same time
  22. 22. Ethanol replaces the incremental gallon of fuel, increasingly from environmentally damaging sources… Research indicates that tar sands oil generates 150 to 300% more GHGs than corn ethanol.
  23. 23. Ethanol Efficiencies • Energy use decreased 21.8% from 2001 to 2006. • 37% of the dried distillers grains with solubles (DDGS) was sold as wet feed which reduces heat demand in the plant between 2001 and 2006. • Water consumption decreased 26.6%. • One bushel of corn yields about 3 gallons of ethanol today. Source: Argonne National Lab, based on RFA survey.
  24. 24. 20% Greenhouse gas reduction Reduction 28% Reduction assumptions from DoE 52% Reduction 86% Reduction Gasoline Corn Ethanol Cellulosic Ethanol Petroleum Current Natural Biomass Biomass Average Gas Sources: Wang et al, Environ. Research Letters, May 2007; Wang et al, Life-Cycle Energy Use and GHG Implications of Brazilian Sugarcane Ethanol Simulated with GREET Model, Dec. 2007.
  25. 25. In conclusion… • It is inescapable; our status quo reliance on fossil & foreign fuel is not a viable option. • Ethanol is part of the solution. Homegrown. Better for Environment. Ready Now. • No silver bullets.
  26. 26. www.ethanol.org
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