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Ethanol Facts
Ethanol is an alcohol primarily produced from corn. Ethanol blends
are available in two varieties – a 10% blend and an 85% blend.
Ethanol contains octane and oxygen. This combination provides
motorists with a high octane fuel at a competitive price which burns
more completely, resulting in less tailpipe emissions.
Iowa is the leader in ethanol production, with more ethanol plants
and more gallons produced than any other state. Iowa supplies
the nation with ethanol to meet clean air requirements from coast to
coast.
Ethanol and Your Vehicle
Ethanol and the Iowa Industry
Ethanol Production and Use
Ethanol is Good for the Environment
Ethanol and Energy Security
Ethanol and Your Vehicle
A 10% ethanol blend is warranted for use by ALL auto manufacturers.
Ethanol is a proven octane enhancer and replacement for lead and other
toxic compounds in gasoline.
Ethanol-blended fuel keeps your fuel system clean for optimal performance
because it does not leave gummy deposits.
Ethanol is the highest performance fuel on the market with a 113 octane
rating. Several national and international racing teams use ethanol
because of its high octane and exceptional performance. In fact,
the Indy Racing League adopted ethanol to replace methanol beginning
with the 2006 season.
Ethanol-blended fuels (10%) are approved for use in small engines,
including outboard motors, snowmobiles, lawn mowers, motorcycles, and
chainsaws. All small engine manufacturers that have tested a
10% ethanol blend have approved its use.
Ethanol guards against gas line freeze by absorbing any moisture that
may get in the tank during cold weather. So, there’s no
reason to spend extra money on over-the-counter de-icers.
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Ethanol and the Iowa Industry
Iowa has over 20 ethanol plants that produce ethanol and a valuable
livestock feed in the form of distillers grains.
The state’s ethanol industry has created 4,250 direct and indirect
jobs.
Ethanol plants produce over $3.5 billion in annual product sales,
with a large portion of these profits reinvested in Iowa when the enterprises
are producer-owned or cooperatives.
Almost all of the corn and 44% of other expenses of an ethanol plant
are purchased from Iowa residents and businesses.
State tax revenues generated by Iowa’s ethanol plants exceed
$26 million per year.
The state’s ethanol industry generates nearly $2.5 billion in
total sales back to local communities.
Iowa’s ethanol industry delivers about $2.40 in added value
for each bushel of corn it processes.
Processing corn into ethanol boosts the state average price of corn
by 6 cents per bushel, which means an additional $124 million of revenue
to farmers annually. Within the market territory of an ethanol plant,
the impact on corn prices could be an additional 12 cents per bushel.
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Ethanol Production and Use
One bushel of corn can produce at least 2.8 gallons of ethanol.
Nationwide production of ethanol exceeds 4 billion gallons and is
expected to reach 6 billion gallons in 2007.
Since 1990, farmer-owned cooperatives are responsible for the majority
of new ethanol production capacity.
A dry mill ethanol plant produces 2.8 gallons of ethanol and 17 pounds
of valuable feed co-products called distillers grains from just one
bushel of corn.
The majority of gasoline sold in Iowa contains 10% ethanol.
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Ethanol is Good for the Environment
Ethanol, a renewable fuel produced domestically, is one of the best
tools for fighting air pollution.
Ethanol lowers harmful carbon monoxide (CO) emissions by 30% and reduces
carbon dioxide (CO2) emissions by 27%.
The use of clean-burning ethanol reduces the amount of noxious fumes
and volatile organic compounds (VOCs) that standard gasoline spews
into the air. Those VOCs eventually clog our lungs.
Of the more than 200 components in gasoline, ethanol is the safest. Studies
have found that ethanol poses no threat to groundwater. Since
ethanol is a naturally-occurring substance produced during the fermentation
of organic matter, it is expected to rapidly biodegrade in essentially
all environments.
The U.S. Environmental Protection Agency credits reformulated gasoline
(containing ethanol) with reducing and controlling hazardous emissions,
which threaten air quality in many of America’s cities.
According to the Argonne National Laboratory, vehicles that use ethanol
actually help to offset fossil fuel’s “greenhouse gas emissions,” which
contribute to global warming, by 35%-45%.
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Ethanol and Energy Security
By 2025, the U.S. will import 77% of its petroleum, according to the
Energy Information Administration. Using more ethanol-blended
fuels will help reduce the need for imported fossil fuels.
According to a study by the Argonne National Laboratory, the use of
corn-based ethanol results in 50% - 60% reduction in fossil energy
use.
Ethanol is more energy efficient to produce than gasoline. Ethanol
production generates 67% more energy than it takes to produce.
One less barrel of imported oil is needed for every 28.3 gallons of
ethanol used.
Blended with gasoline at terminals, ethanol can help extend our fuel
supply by adding volume to the market. The production of ethanol
also helps diversify our energy infrastructure with local production
of renewable fuels.
Every 1 BTU of petroleum fuel used to produce ethanol generates 13.2
BTUs, which significantly enhances U.S. energy security.
The Government Accounting Office reports that the U.S. has spent more
than $130 billion over the last 32 years in governmental subsidies
to the oil industry.
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