Subscribe to Updates in Energy & Industrials

RSS By Email

RSS By RSS

Add to Google Reader or Homepage

Subscribe in Bloglines


The Expertise Imperative and Compliance Technology
Access to a diverse array of specialized expert inputs drives superior decisions in every organizational context: within corporations, by investors and consultancies, and within nonprofits. When decision makers are confident of their decision inputs, they can respond more quickly and creatively to challenges and opportunities.Learn more about GLG's Compliance Framework


This page may include content provided by Council Members, your access to which is subject to the Terms of Use.
Find Out More

July 28, 2008

The Other Side of the Ethanol Story

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jim Crocco, Executive Vice PresidentJim Crocco
FormerExecutive Vice President, Chemical Market Associates, Inc.
Implications: The article describes the problems ethanol creates in gasoline such as lower energy values and deterioration of some engine and fuel components in small engines and boats. Other problems are the need for more petroleum fuels to grow the corn, harvest it, turn it into ethanol and transport that "fuel" to market, besides the fact that fertilizers are also made from hydrocarbons such as natural gas. Also, gasohol reduces some emissions but also creates others such as evaporative emissions from fuel tanks. In  addition gasohol receives a 51 cent per gallon subsidy from the federal government that amounted  to over $3.5 billion last year.

Analysis: It takes more energy to produce ethanol from corn in the USA than ethanol itself contains. Also, ethanol has less Btu value, or energy content, than gasoline. Gasoline contains about 120,000 Btus per gallon whereas ethanol has only about 77,000 that results in less gas mileage for gasoline containing ethanol. It take diesel fuel to run the machinery to grow corn and the fertilizer is made from natural gas. It takes even more diesel fuel to transport the ethanol via tank trucks and rail tank cars to blending locations and retail outlets. Water is also required to grow corn and there are often droughts in various parts of the country depleting our water resources. People have FINALLY become aware of the problems that have been caused by the federally mandated use of ethanol produced from corn, such as the growing cost of foodstuffs, such as chicken, beef and corn flakes, now that the gasoline fuels market is attracting so much corn. The federal subsidy for gasohol of 51 cents per gallon, that amounted to over $3.5 billion last year including some state subsidies, could be put to much better use elsewhere. We must keep in mind that corn is a fuel, ethanol is a beverage and NEITHJER IS A FUEL.

Other Analyses of the Same Source Article:
Fuel Diversity is the answer
July 29, 2008, Author: GLG Expert Contributor
Dealcoholization of contaminated gasoline could be a growth industry
July 28, 2008, Author: Michael Lynch, Consultant, Michael E. Lynch

Report a Concern

GLG News: What Experts Think Is Important





Analytics


Generated at 2008-12-01T21:45:56.203