Ethanol Facts

The Ethanol Industry's Contribution to the National Economy

The Biofuel Industry's Contribution to the Iowa Economy

Ethanol and Your Vehicle

• Ethanol is an alcohol primarily produced from corn that contains octane and oxygen, resulting in a fuel that burns more completely and creates less tailpipe emissions.

• Ethanol-blended fuel keeps your fuel system clean for optimal performance because it doesn’t leave gummy deposits. It’s a proven octane enhancer and replacement for lead and other toxic compounds in gasoline. A 10 percent ethanol blend is approved for use by ALL auto manufacturers.

• 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, and the Indy Racing League has adopted ethanol to replace methanol.

• Ethanol blended fuels, such as the 10 percent blend, 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 percent 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, saving consumers money on over-the-counter de-icers.

Ethanol is Good for the Environment

• Ethanol lowers harmful carbon monoxide (CO) emissions by 30 percent and reduced carbon dioxide (CO2) emissions by 27 percent.

• 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 American cities.

• he use of 10 percent ethanol blends reduces greenhouse gas emissions by 12 to 19 percent compared to conventional gasoline.

• According to the Argonne National Laboratory, vehicles that use ethanol actually help to offset fossil fuels’ “greenhouse gas emissions,” which contribute to global warming, by 35 to 45 percent.

Ethanol Production and Use

• 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 percent ethanol.

• Ethanol can help control gas prices. Ethanol’s partial excise tax exemption means that consumers get better fuel value and more octane for less money when they use ethanol-blended fuel. Typically, E10 sells for less than regular unleaded. One reason many independent gas stations use high-octane ethanol is that its price efficiency helps them control costs and compete with major oil companies who don’t blend ethanol because it takes away from their gasoline volume.

Ethanol and Energy Security

• By 2025, the United States will import 77 percent 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 to 60 percent reduction in fossil energy use.

• Ethanol is more energy efficient to produce than gasoline. Ethanol production generates 67 percent more energy than it takes to produce.

• For every one British Thermal Unit (BTU) of petroleum fuel used to produce ethanol, 13.2 BTUs are generated, which significantly enhances U.S. energy security.

• For every barrel of ethanol produced (1 barrel = 42 gallons), 1.2 barrels of petroleum are displaced at the refinery.

Dry Mill Ethanol Production Efficiency

• For a relatively young industry, ethanol refineries have made remarkable progress in production efficiency. This trend is expected to continue while crude oil refining becomes less efficient.

• The University of Illinois at Chicago researched the ethanol production efficiencies of 2008 comparing them to those in 2001. Ethanol plants participating in the study represent 66% of the nation’s installed dry mill ethanol production.  The findings include:  

• Thermal energy use was less than 26,000 BTU/gallon on average, a reduction of 28% from 2001

• Electricity use was reduced by 32%

• Ethanol yields per bushel processed improved 5.3% to 2.78 gallons

• Total water use was 2.72 gallons per gallon of ethanol produced, down significantly from previous estimates

• The Illinois study also uncovered some additional data points useful to informed debate about ethanol production. Among these points are:

• Approximately 30% of all respondents produce corn oil in addition to livestock feed, also known as distillers grains (in both dry and wet form).

• The average corn draw circle for respondents was 47.1 miles, demonstrating that a large portion of all corn used in ethanol production is sourced locally.

• Ethanol distribution from the facilities responding breaks down as follows: 25% by truck, 3% by ship or barge, and 72% by train.

• Purdue University recently reported on corn ethanol’s possible land use impacts that coincide with improvements cited by the University of Illinois. This new research proves that potential land use change impacts are half of what the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) concluded. Research further proves that there is no doubt that modern ethanol provides significant greenhouse gas benefits compared to gasoline.

• As more scientists look into the issue, they are finding that ethanol is an increasingly cleaner and greener alternative to crude oil.

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The Energy Efficiency Study conducted by the University of Illinois at Chicago is available on the IRFA website at: http://www.iowarfa.org/PDF/EthanolEfficiencyStudyFinal5-10.pdf

The complete Purdue study can be found at:  http://www.transportation.anl.gov/pdfs/MC/625.PDF

Ethanol Energy Balance Shows Substantial Progress

According to a recently released USDA study, dry grind ethanol plants produce 2.3 times more energy in the form of ethanol delivered to customers than it uses for corn, processing and transportation. This dramatic decline in energy use further minimizes ethanol’s carbon footprint and lowers greenhouse gas emissions.

• Corn producers use energy products such as gasoline, diesel, natural gas, liquid petroleum, and electricity directly in planting, harvesting, and drying their crop. There is also energy in the commercial fertilizers used to enhance plant growth.

• The USDA recently released new data from a 2008 study on corn production and ethanol processing to see how much energy was consumed and how the ratios have changed over time. The data on energy components and totals are as follows:

• Nitrogen use measured on a per bushel basis has declined by about 20% since the mid-90s. Similarly, all direct energy components have declined by about 50% since the mid-90s. Together, the nitrogen and direct energy reductions result in a 30% decline in the energy required to produce a bushel of corn.

• Ethanol yields per bushel have increased by about 10% in the last 20 years.

• The corn energy input to ethanol production declined to 9,811 BTU/gal from 16,346 over the most recent 10-year period.

• The ratio of 2.3 BTUs of ethanol for 1 BTU of energy inputs is up from the ratio of 1.76 BTUs for every 1 BTU of energy inputs in 2004. By comparison, gasoline yields only 0.8 BTUs for every 1 BTU input.

• The report also shows that some dry mills that use 50 percent biomass power have an energy output of 2.8 times the energy it takes to make one unit of ethanol.

• The USDA concluded that ethanol has made the transition from an energy sink in the 1970s, to a moderate net energy gain in the 1990s, to a substantial net energy gain today with prospects for further improvement in the future.

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The complete USDA study can be found at: http://www.usda.gov/oce/reports/energy/2008Ethanol_June_final.pdf