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Institute of Transportation Studies University of California, Davis Future of Corn Ethanol Yellow is green? UC Davis Book Project Daniel Sperling Professor and Director November 6, 2006 Michael Pollan expressed concerns about the industrialization of corn. He expressed skepticism about its use for ethanol, but did not pursue the question very deeply. My goal: 1) What is the status of corn ethanol. 2) What are the pros and cons of using corn to make ethanol? General Motors Print Ads (early 2006) Every US presidential candidate as far back as I can remember has endorsed corn ethanol. President Bush’s 2006 State of the Union America is addicted to oil … The best way to break this addiction is through technology ... We must … change how we power our automobiles ... We'll also fund additional research in cuttingedge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. (Applause.) 7.5 billion gallons mandated for 2012 , Earth-Policy.org Of the 11.8 Billion Bushels of Corn Produced in U.S. in 2004, ~12% Was Used for Ethanol Production (~16% in 2006) U.S. Corn Usage by Segment 2004 Feed/Residual: 56.4% Export: 18.5% Ethanol: 11.7% High Fructose Corn Syrup: 5.2% Starch: 2.7% Sweeteners: 2.2% Cereal/Other: 1.8% Beverage/Industrial Alcohol: 1.3% Seed: 0.2% Source: ERS/USDA, 2004, Feed Outlook (in RFA, 2005); EIA Economics of Corn Ethanol Based on Using Protein in Kernel as Animal Feed (co-product) Protein Carbon Dioxide Ethanol Distillers Dry Grains and Solubles (DDGS) Starch (Animal feed mostly for cattle that contributes revenue of ~$0.60 per gasoline-gallon-equivalent – but transport cost is very expensive, and thus quickly saturates nearby feedlot and dairy farm markets.) Reasons for Ethanol’s Success in US • High oil prices • High octane (to enhance gasoline) • Strong political support in farm states Rules requiring oil companies to use ethanol and to “oxygenate” the gasoline Corn lobby was able to overcome opposition from oil companies and California! • Recent rejection of MTBE as acceptable oxygenate additive (leaving only ethanol) • Large subsidies Substantial Biofuel Subsidies in Place in US Ethanol Federal • $0.51/gallon • Various direct and indirect subsidies (small biofuel producers, new ag fuel businesses, biofuel crop production) • Brazilian import tariffs State • 22 states provide production incentives • 32 states provide use incentives Does Corn Ethanol Save Oil and GHGs? Caution: Energy Balance and GHG Analyses of Biofuels Sensitive to System Boundary Choices Operation-Related Activities: Fertilizer, Farming, Corn Transportation, Ethanol Production, Ethanol Transportation, Energy Use for Producing Process Fuels Agriculture yields continue to grow… Corn Yield (T/ha) 1960 – 2000 Selective breeding to genetic engineering …and farming continues to increase efficiency… 0.65 ? Bushels/lb. Fertilizer 0.60 U.S. Corn Output Per Pound of Fertilizer Has Risen by 70% in The Past 35 Years 0.55 Precision farming, etc.? 0.50 0.45 0.40 0.35 0.30 1965 1970 1975 1980 1985 1990 Based on historical USDA data; results are 3-year moving averages 1995 2000 2005 … and processing technology and efficiency also continue to improve… 70,000 1980s 60,000 2000s Btu/Gallon 50,000 40,000 30,000 20,000 10,000 0 Wet Mill Dry Mill Source: From DOE/Argonne - discussions with ethanol plant designers, recent USDA data, and other reported data. But Even With Many Efficiency Improvements, Corn Etoh Has Small GHG Benefits “Our best point estimate for average performance today is that corn ethanol reduces …GHG emissions only moderately, by about 13%.” Delucchi’s (2006) latest point estimate is 2%. Source: Alex Farrell et al, 2006 Corn Ethanol Is Fairly Expensive to Produce Ethanol Fuel Prices Soared and Are Now Tumbling Pros and Cons of Corn Ethanol Pro • Boosts corn prices and stimulates rural development • Reduces oil imports • Easier to implement than battery EVs and hydrogen • Starts the transition to alternative fuels Con • Relatively high cost • Large land and water requirements • Land-related environmental impacts (soil erosion, water/chemical runoff) • No air quality benefits • Only minor reduction in GHGs • Boosts food prices (food vs fuel issue) (grain required to fill a 25-gallon SUV gas tank with ethanol could feed one person for a year) • Limited opportunities in most parts of world (Japan, EU, China) Many Different Biofuels and Biofuel Feedstocks Prominent Biofuels Pathways • Fermentation of sugar/starch materials (ethanol) – what we do now Corn in US, with co-product used for animal feed Sugar in Brazil, with bagasse used for energy • Lignicellulose (for ethanol, methanol, petroleum-like liquids, gases) Waste from forests, sawmills, etc Crop residues (corn stover, rice straw, etc) Woody material (wood farms) Grasses • Oils to replace diesel Waste oils (frying oil, animal fats) Oil seeds and algae (rapeseed provides 7 times greater yield/acre than corn, and palm oil provides 40 times greater yield). Many new thermochemical and biological techniques under development to increase feedstock yields and conversion efficiencies, Many Different Fuels Can Be Made From Many Different Forms of Biomass In Many Different Ways Biological Conversion5 Feedstock Sugar & Starches (Agricultural crops) Conversion Fermentation of sugars & Refining Primary Energy Products Lignocellulosic (All sources) Cellulose-tosugars, then fermentation Ethanol Thermochemical Conversion Landfill Gas & Biogas Lignocellulosic (All sources, including coal) Anaerobic digestion, cleaning, separation Gasification/ syngas processing • Pipeline quality gas • CNG • LNG • Hydrogen (via reforming) • FischerTropsch liquids • Mixed alcohols1 • DME2 • Ethanol3 • Methanol • Hydrogen Pyrolysis, thermal depolymerization & upgrading Synthetic crude, Biogasoline, Biodiesel Chemical Conversio n Bio-oils (Waste oils/fats and oilseed crops) Transesterification Biodiesel 1. Via catalytic synthesis. 2. Dimethylether. 3. Via syngas fermentation. 4. Pyrolysis oils require substantial upgrading before they can be used for transportation applications (e.g., before they can be processed in a conventional refinery). It is more likely they would undergo more modest upgrading for use as boiler fuel or in a stationary IC engine or gas turbine. 5. Also includes direct microbial conversion of sunlight to hydrogen. Much Biomass Available to Make Fuels ORNL 2005 % of GGE Used by Transport Crop Residues 10-22 5-11% Grass (Perennial) Crops 0-19 0-10% Wood/Forest Resources 7-18 4-9% 17-59 BGGE 9-30% Type of Biomass Total (1.1-3.8M b/d) • • • Source: USDA, USDOE “Billion Ton Vision” Report “% of GGE” calculation is based on a future 200 billion GGE demand per year (currently 173B) Criteria: Biomass is accessible by road, sensitive areas excluded, largely ignores economic considerations and competing uses for biomass (other forms of energy and bio-based products) Corn Ethanol is not Green, But Does it Set the Stage for Other (Greener) Biofuels?! • Conditions drivers for new fuels • Conditions politicians/regulators for new fuels But • If biofuel of the future may not be ethanol, then … Introduction of flex fuel cars is wasted (or worse because car companies get special fuel credits) Creation of separate fuel distribution system for ethanol is “wasted” What would Michael Pollan say? What do we say?