Facts about Renewable Fuel

Ethanol is a renewable transportation fuel produced here in the United States. Whether used in low-level blends, such as E10 (10% ethanol, 90% gasoline), or in E85 (85% ethanol, 15% gasoline), ethanol helps reduce American dependence on imported foreign oil and lowers greenhouse gas emissions. Its use also supports the agricultural sector by providing farmers with additional sources of income. Here are some basic facts about ethanol:

1. Ethanol works well in internal combustion engines. In fact, Henry Ford and other early automakers thought ethanol would be the world's primary fuel before gasoline became readily available. Now, nearly half of motor fuel gasoline sold in the U.S. contains ethanol in a low-level blend to oxygenate the fuel and reduce air pollution. Ethanol is also increasingly available in E85, an EPA-approved alternative fuel that can be used in flexible fuel vehicles. Studies have estimated that ethanol and other biofuels could replace 30% or more of U.S. gasoline demand by 2030.
2. About two-thirds of U.S. petroleum demand is in the transportation sector. Sixty percent of U.S. petroleum is currently imported. Depending heavily on foreign petroleum supplies puts the United States at risk for trade deficits, supply disruption, and price changes. Ethanol, on the other hand, is almost entirely produced from domestic crops today. Its use, and that of other alternative fuels, can displace a significant amount of imported petroleum and contribute positively tp the energy security of the U.S.
3. Ethanol is also a high-octane fuel. Octane helps prevent engine knocking and is extremely important in engines designed to operate at a higher compression ratio, so they generate more power. These engines tend to be found in high-performance vehicles. Low-level blends of ethanol, such as E10 (10% ethanol, 90% gasoline), generally have a higher octane rating than unleaded gasoline.
4. Ethanol production is a new industry that is creating jobs in rural areas where employment opportunities are needed. The Renewable Fuels Association's Ethanol Industry Outlook 2009 Report calculated that in 2008, the ethanol industry added more than $65 billion to gross domestic product and supported the creation of more than 494,000 jobs. A recent report claims there is an economic return on investment of nearly five to one for each dollar spent in the form of the federal tax incentive for ethanol use.
5. Ethanol is biodegradable and, if spilled, poses much less of a threat than petroleum to surface and ground water. After the sinking of the Bow Marineroff the Virginia coast in February 2004, U.S. Coast Guard officials noted the cargo of 3.2 million gallons of industrial ethanol had dissipated quickly and did not pose an environmental threat to humans or marine life.
6. Ethanol in the United States is mainly produced from the starch in corn grain. Some studies have suggested that corn-based ethanol has a negative energy balance. However, a preponderance of recent studies using updated data about corn production methods demonstrates a positive energy balance for corn ethanol. In addition, once the technology to produce cellulosic ethanol becomes widely available, the energy lifecycle balance of ethanol will improve. That's because it will be produced using less fossil fuel and more energy-efficient feedstocks, such as fast-growing trees, corn stover, grain straw, switchgrass, forest product residues, and municipal waste. Cellulosic ethanol also produces lower levels of greenhouse gas emissions.