#Ethanol

With one attempt shot down thus far, two U.S. senators are issuing a standalone bill to reduce the use of corn-based ethanol at the pump.

As I pulled into the gas station last week, I faced a decision. Regular gasoline was on sale for R$3,199 a liter, while ethanol (or “álcool” as we old timers insist on calling it) was R$2,299. That meant the sugarcane derived fuel was 71.8% of the price of gasoline. Bearing in mind that gasoline in Brazil is actually E25 and will soon be E27, the rule of thumb is that if the price of ethanol is 70% that of gasoline, it compensates to pump it in spite of the mileage drop.

Of the 14.3 billion gallons of ethanol produced in the United States in 2014, a near-record 836 gallons were exported.

Look for the leading presidential candidates to sing corn ethanol’s praises, louder than ever, in 2016. A bipartisan coalition of Iowans, called America’s Renewable Future, is gearing up to make it happen.

The recent fall in fuel prices isn’t just an opportunity for Americans to demonstrate their collective inability to remember the events of even the recent past; it’s also a decisive hammerblow to E85 plants and retailers across the country.

This has to be the case, right?

In less than a week, the B&B will head out to the polls to decide the direction the United States will take for the next two years.

Big Ethanol, too, is interested in the direction taken.

The Senate of Brazil has just approved the law permitting that an additional 2.5% of anhydrous ethanol be put into what is sold as gasoline in this country. After an increase in 2013 from the previous 20% limit to 25, now cars will have to adjust to the new limit of 27.5%. Now, gasoline cars, made to run on fuels with much less ethanol content, will now have to perform with as much as 30% of ethanol in their fuel.

Audi’s bio-fuel initiative is expanding into France through an investment by the automaker to Global Bioenergies, whose bio-isooctane could be the replacement for petroleum gasoline when the time comes to make the switch.

While ethanol producers have been lobbying to increase the blend of that alcohol in standard gasoline to 15%, many in the auto industry have opposed that increase, saying that it could damage cars. Now the U.S. Environmental Protection Agency has, for the first time, proposed reducing the ethanol requirement in the nation’s fuel supply. Actually, what they are proposing is a smaller increase in the overall use of ethanol, which means that the national standard may not be raised to E15.

Misha writes:

Hi Sajeev!

I’m a long time lurker, first time asker. I was curious about the effects of E85/E90 ethanol laced gasoline. I have read a bunch about how older cars are susceptible to corrosion damage to various parts of the fuel line.

Kawasaki Heavy Industries has developed “technology to produce fuel for cars from farm waste at a cost that is competitive with imported ethanol made from food products, such as sugar cane,” Reuters says.

The House Science Committee approved a bill that bars the EPA from approving E15 gasoline without a further study into its effects. The bill passed 19-7 as members voted along party lines. The bill was sponsored by Rep. James Sensenbrenner (R-WI).

TTAC Commentator NICKNICK writes:

Sajeev–

I can’t believe it’s been two years since I asked you to post a problem with my 1999 Subaru Legacy 2.5 GT. It may have been fixed with just a new gas cap.

After spending thirty years and $45 billion dollars encouraging the use of ethanol the United States Congress has adjourned for the year without extending tax subsidies to the to ethanol industry. The subsidy currently costs taxpayers $6 billion a year. A related import tariff on Brazilian ethanol was also allowed to expire. With a wide group of critics, cutting across political and ideological lines, the tax break had become unpopular in Washington. Business interests in the food and cattle industry as well as environmentalists opposed the law which paid 45 cents per gallon to fuel blenders to subsidize their costs for producing E10 gasoline/ethanol blend. The subsidy resulting in corn being diverted from feedlots and food processors to ethanol production, raising the cost of many foodstuffs. The environmental movement now opposes corn ethanol as a fuel it because it considers the fuel and its production to be “dirty”, in the words of Friends of the Earth.

One of the biggest complaints about biofuel is that food is turned into fuel while people go hungry. Price hikes for staples have been blamed on ethanol production, especially subsidized ethanol production. Ethanol is usually made from sugarcane, corn, and beets. Grapes find their way into fuel tanks instead of wine glasses, rice is often driven instead of eaten. Woodscraps and agricultural residue would be less of a moral and financial hazard if converted into fuel. However, it proved resistant against yeasts. Today, Toyota took reporters to a lab in Aichi and showed off a yeast that wood-scraps, dead leaves, straw etc find highly irresistible.