Ethanol USA

Dec 2008

Environmental, social, economic, and food issues brought on by the rapidly expanding ethanol-from-corn industry in the United States are reviewed and discussed.
The U.S. and many other countries got on an “irrational exuberance” trip with biofuels in 2000-2005. Biofuels were touted for their energy independence, rural economic development, and promise to decrease the rate of global warming.
Although these benefits can be debated, there is little doubt that ethanol resulted in financial windfalls for many corporations, early investors, and grain traders, and gave politicians more job security. Now government and the industries vested in corn-based ethanol will have to deal with the public opinion backlash, loss of political support, and financial insecurity. Corn and ethanol are commodities, and prices have fluctuated wildly in recent months. Currently the industry is operating on a small profit. This makes it even more dependent on subsidies.
Economic analysis is showing that the promised community benefits have not occurred: only a few jobs are created, and most of the profits go out of the community. Meanwhile, infrastructure, particularly rural roads and bridges, are deteriorating and must be strengthened to withstand the weight of trucks moving feedstock in and product out.
Will the future be littered with the hangovers of the past? The use of feedstock(s) that do not impinge on food supplies and do not add GHGs is the only sustainable future for biofuels. At present, large government and private ventures are supporting the attempt(s) to develop an economical cellulosic ethanol industry. This investment may preclude development of more viable alternatives. I propose that policy and technology move on to a “third generation” biofuel mindset, where possibilities are numerous. Research could focus on developing larger, more energy-rich molecules such as butanol and octanol that could replace gasoline without the problems relating to transportation and engine performance.
Developing compounds from plants and plant residues that are closer to crude oil would advance the biodiesel industry. Some promising research projects are now underway, although most remain at the bench or small pilot stage.

By: D. Keeney (Iowa State University)

 
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