Transcript Sustainability - National Corn Growers Association | Home

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Ethanol
Providing Energy Security, Rural Jobs
and Environmental Benefits
Producing Ethanol from Corn
One bushel of corn (56 pounds) produces
2.8 gallons of ethanol and …
Dry Mill Process
Wet Mill Process
17.5 pounds distillers
• 13.5 pounds gluten feed
dried grains with solubles,
• 2.6 pounds gluten meal
a high-protein livestock
• 1.5 pounds corn oil
feed
Corn Farmers Meet All Needs
• Corn farmers are
confident we can meet
all growing needs for
food, feed & fuel
• In 2011, we harvested a
projected 12.4 billion
bushels, for a total
supply of 13.6 billion
bushels.
Ethanol For Fuel Security
• Truman National Security Project’s
“Operation Free” rates fuels across
five factors:
– Instability of Producer Country
– Opposition to American Values
– Climate Disruption
– Possibility of Threat to Supply Chain
– Cost Spike Volatility
Ethanol for Fuel Security
• The scorecard
gives ethanol great
marks
• First or second
place across the
board
1. Instability of Producer Country
3.37
0.45
0.12
“States with large oil
supplies and reserves are
more likely to experience
high levels of corruption,
have little or no
democratic accountability,
and tend to lack fiscal
transparency.”
0.1
Electricity Ethanol Nat. Gas
Oil
www.operationfree.net
2. Opposes American Values
0.96
0.02
0.04
0.06
Electricity Ethanol Nat. Gas
“Buying oil from
autocracies often means
using one hand to fund
regimes that undermine
us, and then using the
other to fund our military
and diplomats to fight
them.”
Oil
www.operationfree.net
3. Climate Disruption
8.05
6.74
3.9
3.56
Electricity Ethanol Nat. Gas
“In terms of climate
disruption, electricity
generation is the most
harmful. Electricity
accounts for 30% of U.S.
greenhouse gas emissions,
primarily from the burning
of conventional coal.”
Oil
www.operationfree.net
4. Supply Chain Threat
3.72
0.66
0.58
0.12
Electricity Ethanol Nat. Gas
Oil
“The OPEC cartel creates a
particularly significant
security threat because of its
ability to withhold oil from
the global market, regardless
of where we source our oil.
While 50% of the U.S. oil
supply comes from OPEC
nations the cartel possesses
even greater power, due to
its control over global
supplies and reserves.”
www.operationfree.net
5. Cost Spike Volatility
13.4
8.9
9.5
1.2
Electricity Ethanol Nat. Gas
Oil
“OPEC controls
approximately 40% of daily
global oil supplies. OPEC
nations have previously
acted in concert to keep
supply low relative to
demand. In 1999, OPEC cut
production supplies, which
led to a spike in prices
from which they
subsequently profited.”
www.operationfree.net
Ethanol for Fuel Security
• In 2010, we made and
used enough ethanol
to displace the need
for 445 million barrels
of foreign oil.
• This is the equivalent
of 13 percent of total
U.S. crude oil imports.
Ethanol’s Economic Impact
• Each year, the
Renewable Fuels
Association provides a
thorough analysis of the
impact of the ethanol
industry on the U.S.
economy
Source: RFA
Ethanol’s 2010 Economic Impact
• 200 plants in 26 states with a capacity
of 13.8 billion gallons
• An estimated 743 million gallons of new
capacity were brought online during 2010 and
at year’s end 840 million gallons of new
capacity were under construction
• 2010 ethanol production was 13 billion
gallons
Source: RFA
Industry Expenditures in 2010
• $1.4 billion in
capital expenditure
for new
construction
• $23.9 billion
for ongoing
production expenses
• $1.5 billion for research and development
Source: RFA
Benefits for 2010
JOBS
INCOME
TAXES
The ethanol The economic $8.6 billion in
industry
activities of federal taxes
supported
the ethanol
and $4.8
more than
industry put billion in state
400,000 jobs
$36 billion
and local
in all sectors
into the
revenue
of the
pockets of
economy
Americans
Source: RFA
Environmental Benefits
• Using ethanol in place of
gasoline helps reduce CO2
emissions
• In 2010, ethanol use cut
greenhouse gas emissions
by 21.9 million tons
• This is like removing 3.5
million vehicles from the
road
Improving Ethanol Efficiency
How Production Has Improved Between 2001 and 2008
28%
less
thermal
energy
used per
gallon
32.1%
less
electricity
used per
gallon
5.3%
Higher
ethanol
yield per
bushel
Source: “Detailed Report: 2008 National Dry Mill Corn
Ethanol Survey,” Dr. Steffen Mueller, May 2010
Improving Ethanol Efficiency
Energy Use, Energy Balance
For every unit of
energy going
into ethanol, 2.3
units of energy
are now
produced
2.3
1
In Balance for theOut
Source: “2008 Energy
Corn Ethanol
Industry,” USDA, June 2010
Ethanol’s Benefits
• Ethanol production reduces dependence on
foreign oil.
• It promotes energy security and
independence.
• It provides a good and growing market for U.S.
grown corn.
• It is a sustainable and renewable fuel.
• It helps the rural economy.
Thank You