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Ethanol is an important piece of the renewable energy puzzle. Ethanol is part of the sustainable, domestic solution to today’s energy needs. It is a renewable resource with positive environmental benefits. Ethanol helps the US economy grow and provides consumers with greener fuel choice today. With a positive energy balance of 2.6:1, Cilion’s Keyes facility in California is one of the most energy efficient renewable fuels plants in the US. Cilion is committed to innovating greener, lower cost renewable fuels for the future.
Available today, ethanol is an important piece of the renewable energy puzzle. Corn ethanol is not an ending point, but is the growth engine for U.S. based ethanol production. Conventional ethanol establishes a platform (via infrastructure, policy advancement and industry acceptance) for other renewable fuels. Ethanol plants have helped revitalize rural agricultural communities across the United States by spurring economic development; increasing local tax revenues; creating year-round, high-paying jobs; and creating enterprise opportunities for local businesses. As a renewable resource with positive environmental benefits, ethanol is part of the sustainable, domestic solution to our energy needs. Ethanol provides consumers with greener fuel choice today and sets the stage for greener, lower cost renewable fuels for the future.
Sustainable Mobility - National Security and Energy Independence
- Ethanol reduces our dependence on imported oil and leverages fossil fuel.
- In 2007, the US had a petroleum-based trade deficit of $293 billion2 , importing 4.9 billion barrels of oil and petroleum products.3
- In 2007, the production and use of ethanol displaced roughly 225 million barrels of crude oil (5% of U.S. oil imports; $16.5 billion value)4 needed to manufacture gasoline.
Environmental Benefits
- The production and use of 6.5 billion gallons of ethanol in 2007 resulted in the reduction of carbon dioxide and greenhouse gas emissions by 10 million tons, the equivalent of removing more than 1.5 million cars from the roads.5
- Corn ethanol reduces tailpipe carbon monoxide (CO) emissions by an average of 20%.
- Reduces volatile organic compounds (VOCs) which readily form ozone in the atmosphere; and reduces secondary particulate matter formation by 50%.6
Positive Energy Balance
- Ethanol has a positive energy balance. On average, corn ethanol delivers 67 percent more energy output than it takes to produce.
- In California, Cilion is not drying the distillers grain thus using 33% less natural gas than the industry standard added with our co-generation, Cilion’s California ethanol plants will have a positive energy balance greater than 2.6:1.
- Compare with gas. It takes 23% more fossil energy to make 1 unit of petroleum gasoline (1:1.23). In other words, gasoline requires more than one Btu of energy to deliver one Btu to your car. That’s a negative net energy balance.
Economy
- Cilion’s Famoso ethanol facility is anticipated to create more than 30 full-time jobs with a payroll of over $2 million and generate over $1.8 million in property and sales tax revenues for a community. Further, each facility generates 850 jobs and over $209 million for the economy (fuel cycle: farm to car), including up to 200 union jobs during the construction period; and will generate $30 million in household income for the local area and corn producing economies.
- According to LECG’s John M. Urbanchuk February 2008 study of the ethanol industry’s contributions to the economy in 2007, the ethanol industry powered the U.S. economy by supporting more than 238,000 jobs; generating a combined increased GDP and higher household income estimated at $4.6 billion in tax revenue for the Federal government and nearly $3.6 billion of additional tax revenue for State and Local governments; and reducing the U.S. trade deficit by $16.5 billion by eliminating the need to import 225 million barrels of oil in 2007 (roughly 5% of total U.S. crude oil imports).
- According to the National Corn Growers Association, studies have shown that corn prices in areas near an ethanol plant tend to be five to 10 cents per bushel higher than in other areas. This additional income has reduced the costs of farm programs and adds vitality to rural economies.
- Domestically produced ethanol reduces the U.S. trade deficit. Every 28 gallons of E85 purchased reduces our dependence on foreign oil by one barrel, helping to reduce our trade deficit by billions of dollars.
Availability
- Reduces our dependence on imported oil and leverages imported fossil fuel.
- Ethanol is currently blended in more than 64% of the nation’s gasoline.
- California gasoline is currently blended with 5.7% ethanol.
- There are currently more than 10 million flexible fuel vehicles (FFVs)7 on America's roads today, and automakers are rolling out more each year.
Water Conservation
- Ethanol plants recycle a significant amount of water inside their plant and also export water to local livestock operations in the form of wet distillers grain.
- A typical 55 million gallon per year plant’s water use is equivalent to growing an 170 acre crop with an annual water use of three acre feet.
- Another point of comparison, Cilion’s facility will use a little more water than an 18-hole golf course.
- The actual ethanol production process takes about three gallons of water per gallon of ethanol. Ethanol production since 2001 has reduced water use by 27 percent, reduced electricity use by 16 percent, and reduced total energy use by 22 percent.
- 96% of the corn is not irrigated.
Food and Fuel
- Ethanol is not a major driver of food price increases. There are more than enough agricultural resources to supply the world with food, feed and fuel.
- Higher food prices are primarily attributed to the following8 : higher energy costs and resulting higher costs for food processing, packaging and transportation; weak US dollar; worldwide economic and population growth (e.g. increased demand meat and dairy diets); weather factors and low yields in parts of the world (i.e. Australian drought); and restriction on food exports (i.e. biotechnology).
- According to the USDA, renewable biofuels only account for 3-4% of the overall rise in retail food prices.
- In joint letter9 dated June 11, 2008, U.S. Secretary of Agriculture Ed Schafer and U.S. Secretary of Energy Samuel Bodman responded to questions raised on biofuels by Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) by stating that biofuels were moderating gasoline prices and played only a minor role in the global food supply and pricing. Further, they stated that the “impact of biofuels on U.S. consumers is even smaller since the farm price of commodities accounts for less than 20% of the U.S. consumers’ food costs”. The Secretaries went onto state that the Renewable Fuels Standard (RFS) is essential to balancing biofuels and establishing the next-generation biofuels; and any effort to retard the RFS would impede the progress toward reducing our dependence on imported oil and reducing greenhouse gas emissions.
Americans have an unprecedented opportunity to feed the world and fuel our nation. The ethanol industry is on the cutting edge of technology, pursuing new processes and renewable energy sources to help us achieve energy independence and food security. Is investing in a new national energy future and developing energy systems that preserve the environment worth the effort? Absolutely!
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