Alternative Energy Bulletin

Ethanol and E85 Fuel

Ethanol is a colorless liquid that is distilled from agricultural crops, such as sugar or corn. In the United States, one out of every eight gallons of gasoline sold contains ethanol.  Most of this ethanol is purchased as blends of 10% ethanol and 90% gasoline, known as gasohol or E10.  E10 is commonly used as an octane enhancer.

Recently, nations around the world have expressed an interest in ethanol as a way to reduce their dependence on petroleum and to reduce greenhouse emissions.

In 2005, the United States Congress passed the Energy Policies Act, which mandates that 7.5 billion gallons of biofuels (including ethanol) be utilized by 2012.  This represents a near doubling of current production in the U.S.

Some localities are not waiting for the federal government to mandate the use of ethanol.  These localities have sought to speed up the use of ethanol by passing their own legislation.  Starting in 2013, the state of Minnesota is mandating a 20% blend of ethanol (E20) into their general gasoline fuel-distribution network.  

Transitioning to a E20 is not without precedent.  In 1975, the country of Brazil began a conversion to an ethanol-fueled economy.  Brazil determined that a 20% blend of ethanol was safe for nearly all of its cars and trucks on the road; thus the conversion to a 20% blend was accomplished with only minor issues arising for older vehicles.

Brazil's transition from petroleum to ethanol got a further boost in 2003 when automakers rolled out "flex-fuel" cars, able to run on ethanol, gasoline, or any mixture of the two.  By 2005, nearly three-quarters of new cars sold in Brazil were flex-fuel.  

With its commitment to ethanol, Brazil has managed to nearly wean itself off imported oil.  This is a significant accomplishment, considering that in 1975, Brazil was 90% dependent on foreign oil.  Brazil has even become an ethanol exporter.

In the United States, most ethanol is produced in the grain growing states of the Midwest.  The U.S. Department of Energy and some biofuel companies are exploring ways to make ethanol from cellulose, or plant fiber.  Switchgrass, a prairie grass native to the Midwest, is one source of cellulosic ethanol currently under development.  (See:  Iogen Corporation).  For information on cellulosic ethanol plants now under construction see:  Invest in Cellulosic Ethanol

Benefits of Ethanol

• Ethanol reduces the amount of harmful carbon monoxide released into the atmosphere.

• Ethanol is a renewable fuel that can be produced domestically from agricultural plants like corn and sugar.  This means that countries who are dependent on imported petroleum can reduce their dependence.

• Ethanol reduces emissions of carbon dioxide (a greenhouse gas) because the grain or other biomass used to make ethanol captures carbon dioxide from the atmosphere as the biomass grows.  While burning ethanol releases this captured carbon dioxide back into the atmosphere, no additional carbon dioxide is added from the burning.  This is not true with fossil fuels, such as gasoline, whose burning leads to a net increase in carbon dioxide emissions.

Drawbacks of Ethanol

• Ethanol contains less energy than gasoline, meaning a decrease in fuel economy.

• Greenhouse gas emitting fossil fuels are required to produce ethanol, because fossil fuels are needed to operate ethanol distilleries and to manufacture fertilizer.  Moreover, producing ethanol on farms relies on greenhouse gas emitting diesel-fueled tractors.

While there are serious drawbacks to ethanol, the benefits appear to outweigh them.  Cornstarch ethanol reduces greenhouse gases by about 18%.  Brazilian, sugar-based ethanol reduces greenhouse gases even more.  The U.S. Energy Department reports, "In terms of key energy and environmental benefits, cornstarch ethanol comes out clearly ahead of petroleum-based fuels, and tomorrow's cellulose-based ethanol would do even better."  According to the National Resources Defense Council, ethanol made from cellulose could reduce greenhouse gasses by more than 80 percent for every gallon of gasoline displaced.

Copyright 2005 by Alternative Energy Bulletin.  All rights reserved.