Ethanol and Politics

Senator Barack Obama and Senator Jim Talent proposed amendments to the Energy Bill passed in 2005 to have an increase availability of fuels mixed with 85% ethanol. The legislation provided a tax credit incentive of 30% through 2010 for switching petroleum pumps into E-85 fueling systems. Both Senator Barack Obama and Senator Jim Talent wanted to lead this particular legislation so the world can save money in producing and consuming fuel. We need to depend on fuel to produce heat or power by burning. Unlike gasoline, fuel is a renewable source that allows plants and crops to continue to be planted. Plants and crops were unable to grow due to the destruction of the world. Crops are being destroyed by people for some time now to produce fuel. We should be responsible for cutting trees to make fuel. Cutting trees reduces the availability of crops and effecting the environment. When people cut down the trees, they can destroy the effective absorbers of carbon monoxide. Cutting trees for fuel can also cause harmful pollutants to the atmosphere and greenhouse gas. Many people could get sick or even die when the atmosphere is polluted. Using ethanol can decrease the damages in the environment. Instead of burning wood for heat and cooking, people can use ethanol.
Both Senators are wise for using a legislation that provides fuel mixed with ethanol. Ethanol is made from fermentation and biodiesel to produce fuel. Biodiesel is made from natural, renewable resources such as animal fats and new and used vegetable oils. Gasohol is formed when ethanol is mixed with gasoline. Gasohol and 10% of ethanol can be used without altering the standard automobile engines. Both, the United States and elsewhere put their investments in producing cars and trucks that use a high concentration of ethanol. In 2005, the United States has produced 3.9 billion gallons of ethanol to make fuel. Ethanol is valuable in the United States because a gram of ethanol does not produce as much energy as a gram of gasoline. Energy is required to plant, to harvest the corn, to produce and use the fertilizers, cultivate and to manufacture the tractors and other farming equipments.
The use of ethanol is important for farmers to grow crops such as crop to feed animals and people. The United States made use of corn and other grains to produce more ethanol. If the U.S. gains too much ethanol, it can decrease the amount of grains for export. E-85 is mixed with 85% ethanol and 15% gasoline so when using it as fuel, the United States and elsewhere can have pure, renewable fuel. Although a gallon of ethanol is more expensive to produce than a gallon of gasoline, energy can be gained. When the fuel is burned, a positive energy balance of 320% is gained. That fuel also becomes more resourceful when used in automobiles. A person who has an automobile can save more money and energy when he drives his car. Both Senators did a good job to save money and energy by producing fuel mixed with ethanol.

Member of the Progressive U Alumni Association

If ethanol were a good idea it probably would not require subsides.

I don't mind subsidies designed to stimulate R&D but when the government is giving subsidies for production, something is wrong. People have known how to make grain alcohol for a very long time so R&D is not the issue. The fact that ethanol is not competitive means that it is probably a bad idea.

I have seen lots of studies that show the energy balance for corn-based ethanol is about neutral. It takes just as much fossil fuel to plant, grow, harvest and process the corn into alcohol as you get in the form of ethanol out the back end of the distillary. It takes diesel to run the tractors that plow, plant, cultivate and harvest the corn. It takes electricty (85% coal fired) to run pumps for irrigation. It takes natural gas as chemical feedstock to make essential amonnia based nitorgen fertilizer. It takes trucks or trains fueled by diesel to get the corn to the still. And it takes heat (coal, natural gas, pretroleum?) to run a still to convert corn mash into alcohol.

Why burn a perfectly good gallon of imported diesel when the end result is a gallon of not quite so good ethanol?

Since we are talking about the politics of ethanol, we should look at the US Senate which with 2 senators from each state allows the small population but numerous agricultural states to have disproportuibate power and foist this travesty on the American people.

With subsidies, ethanol was barely economically viable when gas prices were really high. Now that they have fallen due to the bad economy, despite the subsidies, there are idle ethanol projects (a lot that never even came on line) sitting all over the midwest.

Volunteer for the Progressive U Alumni Association

One thing that really needs to be noted though:

Ethanol (and its counterpart, Biodiesel) can be made from other sources besides corn. In fact, corn is one of the least efficient biofuel stocks. The primary reason why we use it is because we already grow tons of it.

Also, once up and running, many biofuel plants can actually sustain themselves with a portion of the fuel they make, especially when using the more efficient stocks.

The problem with fuel is that it's worthless if you don't have the equipment to burn it efficiently. Biodiesel has less of a problem (and a number of fleets actually use it, currently, so they are building a good niche market), because standard diesel engines can burn it. Ethanol isn't so lucky. Its properties are too different from octane gasoline that regular car engines would get destroyed if they tried burning Ethanol.

Finally, because I don't have time to go into detail on the rest of the stuff, I can't speak for other areas, but the Ethanol stations I've seen around here are running about 20 cents (or more) per gallon cheaper than octane gasoline, and octane is currently running around $2.25/gal around here.



I am treated as evil by people who claim that they are being oppressed because they are not allowed to force me to practice what they do. ~D. Dale Gulledge

Member of the Progressive U Alumni Association

Ethanol (and its counterpart, Bio-diesel) can be made from other sources besides corn. In fact, corn is one of the least efficient bio-fuel stocks. The primary reason why we use it is because we already grow tons of it.

I know. Sugarcane is a viable economic source. Brazil has lots of sugarcane and bio-fuels appear to make economic sense there.

I'm not sure if the USA has any of these viable bio-fuel stocks. There has been talk of things like "switch grass". The proof will be in the pudding and I have not seen it yet. But I am interested in hearing what you think these better bio-fuel stocks that are commercially available to the United States might be. Are they economical?

I'm glad we both agree that corn is a disaster.

The problem with fuel is that it's worthless if you don't have the equipment to burn it efficiently.

That is one of its problems. Another is that it is very difficult to transport. It eats rubber which means it is very hard to send through a pipeline which is problematic for getting it around the country. It means that it has to travel by more expensive means like trains and trucks. Another is that alcohol has a very high affinity for water. (A product called HEET is mainly alcohol and its job is to dissolve water in gas lines). Anhydrous alcohol is less than 1% water and that is the only kind that can be used in fuel. But if you store ethanol, it attracts water and gets steadily diluted. It then needs to be distilled AGAIN.

Also, once up and running, many bio-fuel plants can actually sustain themselves with a portion of the fuel they make, especially when using the more efficient stocks.

That sounds like damnation by faint praise. "Actually"? That does not sound very positive. I bet there is even a little bit left to run all the tractors too!

For the most part, I have read repeatedly that ethanol essentially has a negative energy balance. It takes more fuel to produce it then you produce. This of course varies with the feedstock. One would think it would be slightly better. About 20% of the energy in agriculturally grown plants comes from the sun and the rest comes from fossil fuels. Modern agriculture is essentialloy about transforming fossil fuels into food. But even though you get 20% of the energy from the sun, everytime you transform energy from one form (food) to another (liquid fuel that gets transformed to kinetic and heat energy) you lose far more than that.

Finally, because I don't have time to go into detail on the rest of the stuff, I can't speak for other areas, but the Ethanol stations I've seen around here are running about 20 cents (or more) per gallon cheaper than octane gasoline, and octane is currently running around $2.25/gal around here.

I'm not sure if you are talking about E10 or E85 but since you call it an "Ethanol" station rather than a gas station I'll assume E85. $0.20 on $2.25 is less than 10% price savings. But E85 is something like 25% less efficient then unleaded gasoline. Saving 10% and then getting 25% less mileage does not really seem like a bargain. And that lower price is after the MASSIVE subsidies. If you are a taxpayer, those subsidies are coming out of your pocket.

I'm TOTALLY in favor of any fuel that can stand on it own feet economically. If people can figure out how to make ethanol an economically viable part of our energy mix without having to swipe money out of taxpayers pockets then I am all for it.

I LOVE talking about energy. I wrote my thesis in college on the coal industry. I began my career in the oil and gas energy industry and it looks like I'm going to finish it that way.

Volunteer for the Progressive U Alumni Association

That is one of its problems. Another is that it is very difficult to transport. It eats rubber which means it is very hard to send through a pipeline which is problematic for getting it around the country. It means that it has to travel by more expensive means like trains and trucks.

The (theoretically) simpler solution would be, then to replace the natural rubber parts with synthetic ones.

How easy or economical that would be to implement on existing pipelines, however...well, you'd know that better than I, as that's more within your expertise. What I can say, however, is that diesel engines ran into the same problem when running on biodiesel, but replacing the gaskets and natural rubber parts with synthetic ones takes care of the problem.

And yes, I realize that most of the "synthetic" parts are derived from petroleum. However, I don't consider that a restriction of biofuels so much as a symptom of our dependence on fossil fuels in general.

But I am interested in hearing what you think these better bio-fuel stocks that are commercially available to the United States might be. Are they economical?

Algae.

It's still in research, but it has to potential to produce 15 times the amount of oil corn and switchgrass produce (since it's still in research, I've seen a few different numbers, Wiki says 30 times, and I've seen as high as a few hundred, I think it might depend in large part on the strain, as I think some of the higher numbers come from genetically modified algae strains).

Wikipedia has a good little chart that compares some of the feedstock yields.

Algae also has advantages other than yield. It can be grown just about anywhere as long as there is water. You'll notice that Palm Oil actually outperforms even algae, but the problem with it is that it only grows in a handful of tropical countries. Algae has been known to grow on damn near anything (including ice and snow!). One of the ideas for growing it is to grow it in wastewater treatment plants, where it can perform two roles -- cleaning the water, and then be harvested for fuel production. It can also be grown elsewhere to cut down on pollution, and the act of growing it will help counteract CO2 levels in the atmosphere, because algae use CO2 and create oxygen (as opposed to most other bacterial species, which often have by-products such as sulfur). Finally, it's not a staple food item like corn (although right now, economically speaking, using corn is a good thing, because farms are producing too much to be used for food, so they're getting subsidies to not grow more corn, we could actually lift those subsidies by using the surplus corn for other purposes, or for repurposing the land for other, higher-yield plants).

Aside from algae, there's soy, sunflowers, switchgrass, rapeseed, animal fats, waste vegetable oil, peanuts, hemp, coconut, and many, many others. Basically, if it's a plant or contains a lot of oils, it can be used, to varying degrees of efficiency. Waste vegetable oils works especially well for making fuel at home (which is actually a process about like making homemade beer, in regards to difficulty level), since the plants have already been processed into oil, it's just a matter of turning that oil into fuel (and, then, you can make your own soaps with the glycerin by-product!). I wish I still had the chart that I found when I did a paper on biodiesel, it has a pretty long list of various feedstock sources and comparisons of their yields.

I also find it short-sighted to use only one feedstock source. Doing so puts us in the same position we're in now -- completely and utterly dependent on one source and if that source collapses, so do we. Using a variety of feedstock sources would help to remedy that. So, for example, we could use algae and corn and soy and tallow and waste vegetable oil, and by doing so, we're not putting too much pressure on any one feedstock, and if something happens to one (say disease kills off most/all the soy one year), then the industry isn't crippled because it wasn't prepared to handle the catastrophe.

It's also short-sighted to go into the biofuel industry looking to make only fuel. The by-products of fuel production can be sold to other industries to make things such as soap (from the glycerin), animal food (from the nutrient-rich dry stock that comes from some processes), and so on.

But if you store ethanol, it attracts water and gets steadily diluted.

My research has focused mostly on biodiesel, but I'd venture to guess that Ethanol has similar statistics, as the process to create them both is somewhat similar (and if I remember right, you actually end up with something close to Ethanol while producing biodiesel), and I assume that Ethanol fuel is regulated in the same way gasoline and the diesel fuels are (biodiesel is actively being held to the same standard as petro diesel), but please bear in mind that my numbers are from my research on biodiesel and therefore the numbers for Ethanol might be a little different.

Biodiesel (and petro diesel, for that matter) has a recommended shelf life of six months. This is roughly the length of time that it takes to fall below diesel standards. In mainstream use, fuel is used long before that six month shelf life comes along, so this actually hasn't been an issue thus far. It's possible it might still be an issue for Ethanol, but I think that would be mostly due to market saturation of vehicles that can actually run on E85. Diesel engines can run on biodiesel straight out of the factory, without any modifications (except to replace natural rubber parts in older engines, but my understanding is that newer engines no longer use natural rubber parts, so that's a non-issue).

That sounds like damnation by faint praise. "Actually"? That does not sound very positive. I bet there is even a little bit left to run all the tractors too!

Considering the number of times I've used "actually" in my responses (to you and others), I'm kind of surprised this is the first time you've scoffed at it.

No, it's not damnation by praise, it's stating a fact that's contrary to your assumptions.

As I said many companies are running self-sustaining, in part because unlike petroleum fuels, biofuels have a positive energy balance. (And, according to Wiki, the energy balance may even be higher, depending on the feedstock, which would make sense, given higher yields.)

For the most part, I have read repeatedly that ethanol essentially has a negative energy balance. It takes more fuel to produce it then you produce.

I would be curious to see your sources on this, as everything I've found states that it's petroleum fuel, not biofuel, that has a negative energy balance.

Saving 10% and then getting 25% less mileage does not really seem like a bargain. And that lower price is after the MASSIVE subsidies.

Here is where I admit that after doing the research I've done, both here and in the past, I've found that this is one area where biodiesel seems to have a bit of an advantage. Biodiesel is more comparable to petroleum diesel than Ethanol is to octane gasoline, in terms of energy density. While Ethanol gets 25% less mileage than gasoline, Biodiesel gets 10% less mileage than Diesel, currently. One thing that should be noted, too, is that energy density varies slightly by feedstock. So, it's possible that some feedstocks might prove to yield fuel with better energy density.

Also, as I've stated before, diesel engines can, pretty much by default, run either petroleum or biodiesel, but a standard gasoline engine cannot run on Ethanol. This lends to a more direct comparison than can be made between Ethanol and gasoline. I think, as non-petroleum fuels become more common, we might start to see pure Ethanol engines appear, which would likely be more efficient at using Ethanol for fuel than current "flex-fuel" vehicles are, because they don't have to also be able to run on gasoline (kind a "jack of all trades, master of none" type of situation going on, currently).

And that lower price is after the MASSIVE subsidies. If you are a taxpayer, those subsidies are coming out of your pocket.

I'm TOTALLY in favor of any fuel that can stand on it own feet economically. If people can figure out how to make ethanol an economically viable part of our energy mix without having to swipe money out of taxpayers pockets then I am all for it.

Then you should be frowning upon fossil fuels, too, as they are also assisted by massive government subsidies.

Here's an article you'll probably like. It talks about ending energy subsidies altogether. I agree, too, that subsidies are a bad idea, no matter where they're directed. Perhaps at one time they were necessary (perhaps to keep prices reasonable? I've seen a few things that show that gas prices really haven't changed much in the past 80 years, when looking at it in an adjusted rate manner), but now, with alternative fuels--in general, not just in vehicles, but things like solar, wind, and nuclear power for things like heat and electricity in homes--becoming more viable in the marketplace, I think competition would be enough to keep prices reasonable.

Please don't get me wrong, I'm not saying that biofuels are the be-all, end-all of fuels. Like everything else, the "green energies" have their drawbacks and downfalls, which compound when we become utterly dependent on one of them.

The last article I linked mentioned the water consumption that large solar farms require. This is, obviously, a problem, especially in the sunniest areas, which are typically also the driest. However, it seems, from the quick researching I've done, that home solar installations don't have this problem. It would seem to me, then, that the best way to go is for people to chose where they want to get their electricity--either from buying it from the electric company or from using solar panels or other alternative energy sources installed on their property. By doing it this way, we become less dependent on all sources (and also, using less fossil fuels, which will not only cut down on emissions, but also make the supplies last longer), and spread the load of electricity generation, since those that generate more electricity than they use with their alternative sources can sell the electricity to the electric companies, who can then sell it to others.

The bottom line is that we shouldn't be looking at the different sources as "winners" or "losers," as if they're like the format wars, where VHS wins out over Betamax, or Blu-ray wins out over HD-DVD, and the "loser" goes all but extinct. We should look at them as (roughly) equally viable alternatives to one another, and alternatives that are favored based on individual needs and available supplies in a given area.



I am treated as evil by people who claim that they are being oppressed because they are not allowed to force me to practice what they do. ~D. Dale Gulledge

Member of the Progressive U Alumni Association

The bottom line is that we shouldn't be looking at the different sources as "winners" or "losers," as if they're like the format wars, where VHS wins out over Betamax, or Blu-ray wins out over HD-DVD, and the "loser" goes all but extinct. We should look at them as (roughly) equally viable alternatives to one another, and alternatives that are favored based on individual needs and available supplies in a given area

I'm totally in favor of the "All of the Above" approach particularly if it includes nukes.

Below are miscellaneous comments on other parts of your response.

The "subsidies" that come to oil and gas are almost all in the form of tax breaks. There is a big difference between allowing a company to keep its own money and what happens with ethanol which is that other people's money gets forcibly confiscated and handed to them.

That said, I agree with ending all subsidies. I also favor ending all taxes on corporations because they are just an artificial sham. Any taxes imposed on a corporation are really just imposed on people. They are either born by shareholders, employees or customers.

You are aware that ethanol is just another word for grain alcohol? It is the same stuff that gets put in a cocktail. To be used as a fuel (that gets mixed with gasoline) it has to be at least 99% pure with no more that 1% water. Ethanol has a very specific chemical formula and its BTU content per unit is identical from one batch to the next regardless of the feedstock. This would be different than diesel which is really a mix of complex hydrocarbons that are refined to a standard that falls in a range rather than an exact thing.

The rubber thing is a very big deal for pipelines. One of the biggest expenses of installing a pipeline is paying the owners of the surface land damages for tearing it up. To replace all the rubber gaskets you would be re-digging thousands of miles of trench and causing a lot of damages. The rubber thing is also the main reason older cars can't burn E85. It is a huge deal to make the fixes even on a car so you can imagine how much harder it would be on a thousand mile pipeline.

Energy balance is a strange argument. For example, the energy balance on electricity from a coal fired power plant is vastly negative. The coal has to be mined which takes energy. Then it is burned and converted to heat which is at best 30% efficient. Most of the heat goes up the smokestack and only a few of the BTUs are converted to electricity. And then the electricity has to be transported which is also inefficient with line loss being a major problem. But the good thing is that even though the energy balance is very negative, very little of this energy is imported.

The same is true with domestically produced petroleum and natural gas.

With ethanol, once the "pump is primed", you assert that there is enough ethanol coming out the tail-end of the pump to keep the plant running. For the process to have a positive energy balance there should also be enough to run the tractors, produce the energy intensive nitrogen based fertilizer and run the irrigation pumps and the transportation infrastructure and still have a tiny bit left over to sell at a profit. While to some extent a little energy is input from the sun and is captured by the corn (or whatever), this sounds suspiciously like "perpetual motion". My guess is that we are turning a lot of importe petrochemicals into domestic alcohol.

Volunteer for the Progressive U Alumni Association

You are aware that ethanol is just another word for grain alcohol? It is the same stuff that gets put in a cocktail. To be used as a fuel (that gets mixed with gasoline) it has to be at least 99% pure with no more that 1% water. Ethanol has a very specific chemical formula and its BTU content per unit is identical from one batch to the next regardless of the feedstock.

Yes, I'm well aware that Ethanol is grain alcohol.

As I said, most of my research has been done on biodiesel, which I know for a fact is held to the same standards as petroleum diesel, so applying generalities to Ethanol fuel is hit or miss as far as what applies to it that applies to biodiesel. Part of the reason that I said that I feel that biodiesel is actually superior to Ethanol is because biodiesel is held to high enough standards that the finished product is more in line with petroleum diesel.

I believe the part of my comment you're referring to regarding my comment about energy density and how it may vary with feedstock. To clarify, I was talking about biodiesel in that section (hence the "I think biodiesel is better, and here's why..." tone). The way biodiesel is produced, it can have better or worse energy density based on the feedstock, at least that's how I understand it. I do admit, however, that fuel creation is not my area of expertise, so I could be mistaken.

The rubber thing is also the main reason older cars can't burn E85. It is a huge deal to make the fixes even on a car so you can imagine how much harder it would be on a thousand mile pipeline.

The way I understood it, older cars (and even modern cars) can't run on E85 without significant modifications because it burns hotter than gasoline.

That said, thank you for detailing the issue with the pipelines. As I said, it's a simple solution, but not an easy one. Sadly, it adds yet another reason why I think we as a country are in dire need of infrastructure overhauls.

For the process to have a positive energy balance there should also be enough to run the tractors, produce the energy intensive nitrogen based fertilizer and run the irrigation pumps and the transportation infrastructure and still have a tiny bit left over to sell at a profit.

And yet, if farms were more responsible about their practices, they wouldn't need expensive chemical fertilizers to grow their crops in the first place. And, believe it or not, I'm not talking "evil Liberal rhetoric" here. Spend a week in Amish country (I don't think you can get more conservative) and you'll see what I'm talking about.

As I've said before, the fuel can come from a myriad of sources, including things that were already processed and used (in effect, recycling these things), or that aren't typically used at all and therefore wasted (inedible parts of the plants), so the cost of things like growing the plant to begin with are substantially reduced at the fuel generation level, as the fuel plant is not getting the farm's entire stock, but rather a portion of a portion.

Also as I've stated before, the fuel is not the only thing a plant can sell to make money from. There are several byproducts that can be sold, either back to the farms or to other people, thus reducing the final cost of creating the fuel.

You have pointed out something that I think I should address, though -- the fact that a fuel refinery is not its own system, but part of a larger system. Do the cost arguments that you've been presenting, then, include the cost of tearing up land or drilling, the water required for mining oil and gas, the manpower (and risk) required for mining the coal, the cost of transporting foreign oil from the other side of the world, and the cost of cleaning up the inevitable oil spills?



I am treated as evil by people who claim that they are being oppressed because they are not allowed to force me to practice what they do. ~D. Dale Gulledge

Member of the Progressive U Alumni Association

Do the cost arguments that you've been presenting, then, include the cost of tearing up land or drilling, the water required for mining oil and gas, the manpower (and risk) required for mining the coal, the cost of transporting foreign oil from the other side of the world, and the cost of cleaning up the inevitable oil spills?

Economic costs and energy are of course not exactly the same thing. Money can be changed into energy and energy can be changed into money so they are closely related but some of the costs above (like health risks of coal mining) are only related to energy consumption in a very indirect manner.

To answer your question, they are included to the extent that they have been internalized on the producers of these costs rather than being externalized onto the public.

When companies mine coal or drill for oil, they are required to pay surface damages to the owners of the surface. In coal mining where the surface is virtually destroyed, these damages are often in excess of the market value of the land and even sometimes include a royalty payment on the minerals produced. So the answer is yes. Both coal mining and oil production generally result in the net production of water. Some of this water is very poor quality and is often treated by the EPA as a polutant. They regulate it very strictly and it can be very expensive to dispose of so the answer is yes. Laor (manpower) is definately a payroll cost so the answer is yes. Most energy companies provide deluxe health insurance so health risks are largely internalized. To the extent that it is laborers rather than shareholders and executives who get blacklung disease, then the answer is partially. Transport of energy across the country or around the world is definately something that gets internalized into the price. The cost of cleaning up spills is sometimes internalized and sometimes born by the public and/or the environment.

Mostly the oil, gas and mining industries are very tightly regulated. Farming, including the kind for agfuels, on the otherhand is an extremely dirty business that is hard on the land and particularly hard on water. For example, there is a huge dead zone covering thousands of square miles out from the Missisippi delta. This is caused by farm waste.

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