From the High Plains Journal:

Nationally, gas prices have risen nearly every day for the past 42 days. Some analysts expect that a return to $100 oil–and $4 gas–isn’t far behind. But Nebraska drivers are already saving money by filling up with E10.

“Nebraska drivers have already saved over $4.5 million in 2009 by buying E10,” said Todd Sneller, administrator of the Nebraska Ethanol Board. “If all the fuel sold in Nebraska in the past five years was E85, Nebraskans would have saved $2.6 billion.”

Or not.

The E85 industry is tanking. Despite federal mandates designed to foist the fuel on a suspecting public, and Transportation Secretary Chu’s determination to make all new vehicles Flex-Fuel capable (EPA credits for everyone!), the E85 industry is on the brink of extinction. Consumer demand (such as it wasn’t) is plummeting. Meanwhile, environmentalists threaten to expose the corn-for-fuel process as, gasp, carbon-positive. Evidence of pumps with ten-foot pole marks comes to us from Minnesota, the state with the highest number of E85 outlets in the land. Here’s the Star Tribune’s report, which can’t resist using the boosterrific term “clean burning” whilst charting the corn-based fuel’s demise:

(Read More…)

One wonders how many entries the Renewable Fuels Association received for their “online ethanol contest” designed to “get a new generation of Americans, mainly college students, engaged in the promotion and support of ethanol.” Domesticfuel.com claims that this video was chosen by “thousands of people across the country.” Oh, wait! “From there, a panel of judges selected the final winner, based on creativity, quality and relevance. McAfee won a Macbook Air computer for his winning entry.” Anyway, it looks like we’re a bit late to this “story.” Never mind. “The Fuel-Flex Challenge was sponsored by the Kansas Corn Commission, the Kentucky Corn Growers Association, the United Sorghum Checkoff Program and the Renewable Fuels Association. The fun will continue this summer with the launch of a new photo contest. Stay tuned for more details.” We will!

Energy Secretary Steven Chu gave a speech in Des Moines, Iowa, yesterday in which he argued that all cars sold in America should be E85 capable. “I’ve been told it costs about $100 in gaskets and fuel lines to turn a car so that it can go all the way to E85,” Chu is quoted as saying in the Des Moines Register. “But a new car, it would only cost $100 out of $15,000. Wouldn’t it be nice to put in those fuel lines and gaskets so that we can use any ratio we wanted?” Sure, if E85 were a viable alternative fuel, and not just an agricultural subsidy.

(Read More…)

“Congress already made sure corn ethanol was protected from any scientific assessment of its impact on the environment when it passed the 2007 Energy Independence and Security Act. Buried in the law are provisions that exempt every gallon of corn ethanol from the requirement to reduce greenhouse gases that all other biofuels have to meet to qualify as a ‘renewable fuel.’” So reporteth Minnesota’s Startribune.com, while ripping hometown pol House Agriculture Committee Chairman, Collin Peterson, a new you-know-what. The paper’s plenty pissed at Petersen’s threat to torpedo Obama’s climate change legislation—unless the EPA gives ethanol a “get out of jail free” card for its tendency to increase global warming. Careful readers will now note the quote that initiated this blog and notice that Petersen’s asking for a free pass that the industry already enjoys. Never mind. Hell hath no fury like a legislator protecting his sponsors.

(Read More…)

Despite Obama’s clear support for ethanol, refineries continue to drop like flies. UPI reports that four Pacific Ethanol Inc subisdiary refineries have filed bankruptcy documents in Delaware. High corn prices and low fuel prices continue to kill the market for ethanol (such as it is); apparently the evil grocery lobby is still hard at work. Ethanol refiners are reporting around 30 cent per-gallon losses. (Interactive map of ethanol pumps found here.)

President Obama gave the dying ethanol industry a huge shot in the arm Tuesday when he announced that over $780 million of stimulus money will be spent on biofuel “research and commercialization,” guided by an all-new Biofuels Interagency Working Group. Think of a giant, government-funded R&D/marketing department for the ethanol industry, and you’ll have some idea of what we’re looking at. “We need to work in concert with the industry to figure out how to do a better job to create a market for biofuels, how to increase the use of flex-fuel vehicles, how we can assist those who market, and to coordinate the infrastructure, and do all this in a sustainable way,” says Agriculture Secretary, Tom Vilsack. Unfortunately “creating a market” isn’t easy. The US already spends more on ethanol subsidies than any other renewable energy source, and has been rewarded only with crashing ethanol demand and rampant refinery bankruptcies. Good thing hope springs eternal in the breast of K Street.

(Read More…)

The EPA is currently soliciting comment on a proposed waiver to allow 15 percent ethanol blends (E15), and despite enduring a year of hard knocks, the ethanol lobby is making a desperate stand to reverse its declining fortunes. Peruse already-submitted comments, and you’ll notice that Growth Energy (the new K-Street tip of the ethanol spear) dominates the list with a host of spurious “supporting materials.” The group’s main argument (PDF) is fine-tuned for the jobs-crazed economic-political climate, centering around the assertion that “according to one estimate, allowing blending of E15 has the potential to create at least 135,000 jobs.” Which sounds great as long as you don’t look at the “hidden” cost of increasing blending credit receipts. Needless to say, Growth Energy isn’t asking anyone to go there, having helpfully created some talking points to help make commenting easier. We suggest commenting on the proposed waiver as well, but rather than dutifully regurgitating GE’s talking points why don’t you go through our E85 archive first. Or check out a few recent news stories after the jump which illustrate our unrelenting skepticism of so called intermediate ethanol blends.

(Read More…)

It’s been a while since we’ve run an E85 BOTD. The big news on the corn-for-fuel front: the E85 lobby is pressuring the Environmental Protection Agency (EPA) to allow states to raise the minimum required amount of ethanol from 10 to 15 percent. For some reason, Agweek seems to think ethanol producers haven’t yet hit “the blend wall”: the point at which there’s more ethanol than demand. (The fact huge swaths of the food-for-fuel industry have gone bust may have provided a clue). But at least they acknowledge the Everest ahead. “Many environmental and consumer groups and small engine and car manufacturers are concerned that the increased blend rate might damage pollution control equipment, reduce air quality, and undermine vehicle and equipment performance and warranties. The EPA and Department of Energy are currently testing the effects of higher blend rates on engine performance and emissions.” We’ll keep an eye on that one. Meanwhile, the Minnesota Auditor’s office has had a look at the state’s $93 million worth of ethanol subsidies and asked the logical question WTF is that all about?

(Read More…)

Two recent developments have tarnished whatever green reputation ethanol has left. First, the news that corn-derived ethanol requires up to three times more water to produce than previously thought has cast a spotlight on the industry, especially in the dry west and southwest. A new study published by the American Chemical Society reports that previous estimates of water used to produce ethanol are inaccurate. The article’s abstract:

(Read More…)