Archive for May 24th, 2009

Getting Ethanol Right

Posted on May 24, 2009. Filed under: Blender's Tax Credit, Field-to-Pump, Hydrous Ethanol | Tags: , , , , |

Getting Ethanol Right

The New York Times

Editorial

May 24, 2009

Representative Collin Peterson is furious that the Environmental Protection Agency is doing its job. The Minnesota Democrat says the agency is trying to kill off the biofuels industry — to the dismay of the corn farmers and ethanol producers he represents. He has vowed to vote against any bill, including climate change legislation, that might require the involvement of the E.P.A.

What inspired this tirade was an E.P.A. draft proposal showing how it intended to measure the greenhouse gas emissions from corn ethanol and other renewable fuels. The agency said it will not make any final rules until it completes further research, but its preliminary findings were not flattering to corn ethanol.

The E.P.A. was only doing what Congress ordered in the 2007 energy bill, which required a quadrupling of annual ethanol production to 36 billion gallons by 2022. In practical terms, this meant more traditional corn ethanol, until other more advanced forms of ethanol could make their way out of the labs. Scientists believe that various grasses and scrub trees that do not compete with food crops can someday be turned into fuel.

Congress hoped the ethanol mandate would produce a more climate-friendly fuel that could help reduce oil imports. But just to make sure, it stipulated that ethanol from any source be cleaner than conventional gasoline. It handed the job of measuring emissions to the E.P.A., and told it to consider the fuel’s entire life cycle.

This included counting the greenhouse gases released when forests or grasslands are plowed under and planted to make up for the crops used to make ethanol. When the E.P.A.’s scientists counted these indirect effects, corn ethanol emitted more greenhouse gases than gasoline over a 30-year period.

The E.P.A. says its analysis needs refinement, and in any case the 2007 bill grandfathers in existing corn ethanol plants or those under construction. That means there will not be any reduction in corn ethanol production; indeed, there could be more. Mr. Peterson and his farm bill colleagues are still steamed, because any adverse finding diminishes corn ethanol’s appeal.

Lisa Jackson, the E.P.A. administrator, can expect heavy pressure in the months ahead. The ethanol industry and its Congressional champions will argue that the science is unclear, that indirect effects cannot be measured accurately, and so on.

Ms. Jackson should stand her ground. Biofuels have an important role to play, and some will eventually be produced without pushing up food prices or increasing emissions. It is the E.P.A.’s duty to give the most unbiased accounting it can of their strengths and defects.

About Renergie

Renergie was formed by Ms. Meaghan M. Donovan and Mr. Michael J. Donovan on March 22, 2006 for the purpose of raising capital to develop, construct, own and operate a network of ten ethanol plants in the parishes of the State of Louisiana which were devastated by hurricanes Katrina and Rita.  Each ethanol plant will have a production capacity of five million gallons per year (5 MGY) of fuel-grade ethanol.  Renergie’s “field-to-pump” strategy is to produce non-corn ethanol locally and directly market non-corn ethanol locally. On February 26, 2008, Renergie was one of 8 recipients, selected from 139 grant applicants, to share $12.5 million from the Florida Department of Environmental Protection’s Renewable Energy Technologies Grants Program.  Renergie received $1,500,483 (partial funding) in grant money to design and build Florida’s first ethanol plant capable of producing fuel-grade ethanol solely from sweet sorghum juice. On  April 2, 2008, Enterprise Florida, Inc., the state’s economic development organization, selected Renergie as one of Florida’s most innovative technology companies in the alternative energy sector.  On January 20, 2009, Florida Energy & Climate Commission amended RET Grant Agreement S0386 to increase Renergie’s funding from $1,500,483 to $2,500,000. By blending fuel-grade ethanol with gasoline at the gas station pump, Renergie will offer the consumer a fuel that is renewable, more economical, cleaner, and more efficient than unleaded gasoline.  Moreover, the Renergie project will mark the first time that Louisiana farmers will share in the profits realized from the sale of value-added products made from their crops.

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    About

    Renergie created “field-to-pump," a unique strategy to locally produce and market advanced biofuel (“non-corn fuel ethanol”) via a network of small advanced biofuel manufacturing facilities. The purpose of “field-to-pump” is to maximize rural development and job creation while minimizing feedstock supply risk and the burden on local water supplies.

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