Despite a mandate from the electorate to cut federal spending, Congress renewed ethanol subsidies for 2011, and shows no signs of cutting them for 2012.
For another year, taxpayers will provide a 45 cent per gallon tax credit to ethanol producers/distributors to mix ethanol into the U.S. gasoline supply. Imported ethanol has a 54 cent per gallon tariff to ensure that only U.S.-produced ethanol is utilized. This amounts to $6 billion per year in federal fuel subsidies. These subsidies are 190 times what the oil and gas industry receives, and even twice what solar energy receives, although solar is unequivocally the alternative energy source with the least environmental impact. Taxpayers have built an industrial house of cards, with a phantom foundation of agricultural subsidies—not consumer desire or sound resource management. In North America ,ethanol is unnecessary as a transportation fuel and forcing it on the marketplace is detrimental to the economy and environment.
Ethanol is the industrial version of the alcohol we consume. It has two carbons in its chain, whereas gasoline averages eight (i.e., octane). Ethanol can be used as fuel in automobile engines when mixed with gasoline. Certain modern engines and race cars can have some performance improvements with 10-15 percent ethanol, but these are exceptions. The biofuels “gold standard” is 85 percent ethanol/15 percent gasoline, but 85/15 decreases fuel economy over 30 percent, thereby cancelling energy savings. Ethanol is a strong solvent for engine parts, storage tanks and pumping equipment and pipelines. Automobiles and gasoline distribution systems must be redesigned, retrofitted or chemically protected when levels of ethanol over 15 percent are mixed in fuels.
Have you wondered why grain alcohol is 190 proof? Ethanol has a lower boiling point than water so it is distilled by boiling a fermentation mixture and trapping and condensing the vapor. Ninety-five percent ethanol/ five percent water boils at the same temperature as 100 percent ethanol so the final distillate always has water. Ethanol must be chemically dehydrated to burn in engines, but it picks up water again when exposed to the atmosphere or moisture, so current gasoline pipelines must be modified for ethanol. This 5 percent water wreaks havoc on engines. Cold weather starts are horrible, and fuel cannot sit around long in tanks. Small engines such as chain saws do not like ethanol. Much is made of Brazil’s successful use of ethanol as a transportation fuel, but the tropical climate helps cold starts a great deal. Furthermore, Brazil uses 75 percent gasoline/25 percent ethanol—far from the gold standard—and is actively exploring for petroleum resources.
In North America, ethanol is manufactured by distilling corn—the industrial version of whiskey. Currently, 40 percent of the U.S corn crop is producing ethanol. Ethanol subsidies and agricultural subsidies paid to corn growers keep prices low and stable, thus distorting the market. In addition, growing corn takes a lot of energy, including fossil fuels to run farm equipment and transport products. It is estimated that it takes 1.4 times the energy to create a gallon of ethanol than it produces when burned. A more charitable recent estimate gave a 25 percent net increase in energy from ethanol, but only because the grain mash leftover from distilling was sold as animal feed. This is essentially no net energy gain. In contrast, Brazil ferments sugar cane to produce ethanol which is five times more efficient than corn.
Earlier this year, it was revealed that presidential hopeful Newt Gingrich received $300,000 in 2009 consulting a major ethanol lobbying group. The Wall Street Journal criticized Mr. Gingrich in a January 20 editorial titled “ Professor Cornpone: Ethanol lobbyist Newt Gingrich and us˗ and the GOP” for a speech in Iowa in which he lauded ethanol and lambasted “big city attacks.” But Mr. Gingrich can’t have his corn and eat it, too. He cannot be both a deficit hawk desiring to engage the conservative base while also touting the advantages of an industry heavily dependent on government subsidies.
This is a tough sell for politicians wanting to impress in the Midwest, where most ethanol is produced.
There is nonetheless a way out of this dilemma. Conservative politicians don't have to attack the industry, just pledge to incrementally decrease subsidies over three to five years and then let the market decide. Presidential candidate and former Minnesota governor Tim Pawlenty has paved the way by launching his campaign for the GOP nomination with a call to cut ethanol subsidies.
It is also well to understand how scientists and engineers in petroleum and allied industries think: Petroleum is a geologic resource put in place hundreds of millions of years ago. It is there for us to use and we are foolish if we do not—oil isn’t soil and is worthless if not burned. Fossil fuels are not finite resources—the earth keeps making them every day. The only argument is: “What is the rate of replenishment?” As the energy debate continues, there are resources in the Middle East, the U.S. and Canada that we can use until suitable alternatives arise.
Finally, there are farm and biotechnology industries which provide more energy than input. Since oil is pressed directly from soybeans, biodiesel provides 93 percent more energy than input, and biodiesel burns with lower emissions than petroleum diesel. Many are concerned that petroleum must be conserved because it is a feedstock for chemical and plastics industries. However, yeasts, bacteria and algae have already been engineered to make sugars, amino acids, alcohols and specialty fats - and in the next decade this industry will be able to manufacture thousands more industrial and specialty chemicals.
Not surprisingly, Iowa State University is a leader in biological engineering ˗ so might be nice for Mr. Newt to visit next time. But by then it will be too late to change the impression he has made of one who is in the pocket of the ethanol industry while pretending to be in search of the most efficient solutions for America.
-Dr. C. Leigh Broadhurst is a research geochemist and geobotanist.
