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.
The usual window dressing of biomass-based “next-gen” biofuels rules the day, rhetoric-wise. But cellulosic ethanol is still dangling somewhere in the future, a lure to justify short-term handouts for King Corn. According to the EPA’s proposed rule revisions (also announced at EthanolFest2009), however, 15 billion gallons of the 36 billion renewable fuels mandate will still be corn ethanol in 2020. And like any good lobby, the ethanol lobby isn’t satisfied with the handout it has. Bryan Jennings of the American Coalition For Ethanol goes as far as to identify E10 as the problem “standing in the way of President Obama’s vision.” Why? Because if ethanol blends aren’t increased to E15, E20 or E30, the ethanol companies won’t be able to fund (with the increased blender’s credit money) research of cellulosic ethanol. Because it’s not like the government is helping with that.
See the ethanol lobby laughing maniacly at this news at Growth Energy’s Youtube page.
I recall reading in the WSJ that the oil companies are buyers of the bankrupt ethanol producers, because if they’re required by law to put the stuff in their gasoline, they need to be assured of supply. So will a chunk of these subsidies eventually roll up to ExxonMobil? Awesome.
We all hate ethanol, right?
Or are there ethanol supporters on TTAC who base their support of ethanol on Ayn Rand’s principles and think that the current administration’s policy toward ethanol comprises an unconstitutional “taking?”
Just askin’.
My only problem with Ethanol is the damage it does to my 1985, 1989 and 1993 cars. If the majority of society wants to go on a children’s’ crusade to waste resources on “biofuels” I don’t really have a problem with that.
All this for a fluid that has half the energy of gasoline and is a real PITA to produce. How about 800 million dollars for repairs and new cars when ethanol takes it’s toll?
I guess that wasn’t considered,
Let me get this straight – I can pay the same or more money for E20 or E30 blends, have my engine ruined, and lose at least a third of my mileage? Where do I sign?
According to the EPA’s proposed rule revisions (also announced at EthanolFest2009), however, 15 billion gallons of the 36 billion renewable fuels mandate will still be corn ethanol in 2020….Bryan Jennings of the American Coalition For Ethanol goes as far as to identify E10 as the problem “standing in the way of President Obama’s vision.” Why? Because if ethanol blends aren’t increased to E15, E20 or E30, the ethanol companies won’t be able to fund (with the increased blender’s credit money) research of cellulosic ethanol.
This was my point about the E15/E20 waiver applications. Yes, the EPA and the waiver applicants are dressing it up like it’s only giving consumers a choice. But in fact, there’s the renewable fuels mandate from the Bush-Obama energy bill a couple of years ago. The blenders say in their waiver application that they can’t possible get enough corn into the fuel if only E10 is allowed.
The mathematics are simple, then. If E15 isn’t allowed, the insane ethanol mandate will have to be reformed. If E15 is allowed, then the mandate will make it de facto mandatory in many areas, because it’s the only way to put enough corn in tanks.
God damnit, I don’t want corn syrup in my food or my gas.
Ladies and Gentlemen you are all quite correct in the fact that Ethanol fuel for our cars and trucks is not good stuff, not as it stands now. I do wish to play devil’s advocate on two points:
1. Ethanol is not so good now unless you have an E85 burning car. I myself do not so I drive cross the state line to MO to get my petrol. It is my understanding that the funding is to be used to further the science to make it more pleasable to your engine. Remember we already went down a very similiar road when we all switched to Unleaded gasoline in the 70’s.
2. Ethanol fuel is actually better used as fuel for power plants as it stands today. The future it seems, is to go in two direction with Corn/Plant based fuels; Power generation that will charge your electric and a diesel-esque for those of us who like them and the trucking industry.
These darn prostitutians are confused, and their confusion will cost us a LOT of $$$.
The aim is to replace oil, not gasoline or diesel. Ethanol gets you part of the way, since most of the time you are replacing oil with (mostly) natural gas. Of course a CNG vehicle would be an easier way to achieve that.
Biofuels, if they are even to make a postive contribution, should be waste-based (not food-based) and should be converted into the same gasoline and diesel that we all use (or at least into something that is completely miscible with existing fuels, like butanol). That way you don’t have to replace the vehicle fleet OR the fuel distribution network, saving many $$$. Perish the thought…