Ethanol Part 1: Running the Well Dry?

  • Ethanol is starting to bring prosperity to some rural communities. But there are also concerns about whether adding this new industry to other industries - and cities - that draw on groundwater supplies will cause local shortages of water. (Photo by Rebecca Williams)

It’s no surprise that the Corn Belt is the heart of the ethanol boom.
Two main ingredients you need to make ethanol are corn and water.
There’s no shortage of corn of course, and in most places it’s assumed
there’s also plenty of water. But as Rebecca Williams reports, even
people in water-rich states are getting concerned about ethanol’s
thirst for groundwater:

Transcript

It’s no surprise that the Corn Belt is the heart of the ethanol boom.
Two main ingredients you need to make ethanol are corn and water.
There’s no shortage of corn of course, and in most places it’s assumed
there’s also plenty of water. But as Rebecca Williams reports, even
people in water-rich states are getting concerned about ethanol’s
thirst for groundwater:


Bob Libra can tell a lot about water by looking at rocks. We’re in his
rock library – it even has a Dewey decimal system. Libra’s holding up
one of the 35,000 chunks of rock in here.


(Sound of scraping on limestone core)


“This for example is a core from a well. You can look at this and say well this is
what the plumbing system’s like down there.”


Libra’s a state geologist with the Iowa Department of Natural
Resources. Part of his job is to figure out how healthy his state’s
water supplies are. Any time a test well is drilled for a new ethanol
plant, rock samples get sent here.


Outside the rock library, there are three red pipes sticking up out of
the ground. These are observation wells that tap into sources of
groundwater far underground, called deep aquifers:


“A lot of people refer to it as Paleo-water or fossil water. It’s been
down there tens of thousands, hundreds of thousands, maybe millions of
years.”


Libra says the water in those deep aquifers is pumped out for
everything from drinking water to ethanol plants. But as it’s pumped
out, it’s not replaced right away. It could take hundreds or thousands
of years to replenish the aquifers.


Geologists use the observation wells and rock samples to figure out how
much water is in those aquifers. But here at the rock library, those
samples are piling up into small mountains in the storage room. Bob
Libra says his state is way behind. Iowa hasn’t updated its groundwater
maps for 20 years:


“I think Iowa’s in the same kind of situation that a lot of states that
tend not to think of themselves as ‘water poor’ are finding themselves.
We haven’t paid attention to it for 20 years and suddenly BANG we’re
using an awful lot. And we have people every day going I’m interested
in putting a plant here – how much water can I get over here? And it’s
happening very rapidly.”


Each state has its own way of managing its groundwater. In Iowa, you
have to have a permit if you’re withdrawing more than 25,000 gallons of
water per day from a well or stream. Libra says the ethanol boom has
overwhelmed the state office where permits are handed out for the
asking:


“I’m at this location, I’m drilling into this aquifer, I’m going
to extract this amount of water. Here’s my $25 for a 10-year permit.”


Libra says nobody’s really checking to see if all these water
withdrawals will work for the next few decades.


How much water ethanol plants consume depends on who you talk to. But
on average, it takes between three and four gallons of water to make
one gallon of ethanol. Bob Libra says here in Iowa, adding new ethanol
plants is like adding a bunch of new towns out in the cornfields:


“A lot of ethanol plants they’re building now are on the order of 100
million gallon per year capacity so they’d be using about 400 million
gallons of water a year which is roughly as much as a town of 10,000
people.”


In some drier states, new ethanol plants are running into opposition.
Mark Muller is with the Institute of Agriculture and Trade Policy. He
says groundwater is local. So, what works in one place might be a
crisis in another:


“We’ve already seen it in Southwest Minnesota where a plant was denied because
of a lack of water resources. There’s a couple big fights going on in
Kansas right now over water availability. I think this is going to
probably one of the big drivers that’s going to make the industry look
further East rather than in the Midwest/Great Plains.”


The ethanol industry argues that it has already cut back on water use.
Lucy Norton is the managing director of the Iowa Renewable Fuels
Association. She says it’s in the industry’s best interest to be
careful with water:


“We’re not going to see a plant built somewhere where it’s an iffy
situation as to whether 10 years from now we’re going to have enough
water. You don’t put $200 million investment into a location that’s
not going to be able to sustain itself 10 years from now.”


But even if the water supplies could last 50 years, once the water is
gone from the aquifers, it’s gone for a long time.


There are a lot of
test wells going in these days, with 123 plants in operation and more
than 80 under construction around the country.


The growing political pressure for more and more ethanol is making
state officials eager to figure out exactly what’s underground, instead
of just assuming there’s enough water.


For the Environment Report, I’m Rebecca Williams.

Related Links

States Slow to Pump Up Ethanol

  • As the price of gasoline rises, many states are looking for alternatives. One of those alternatives is the ethanol blend, E-85. But, some states (like Ohio) are not keeping up with the trend. (Photo by Lester Graham)

The federal government is focusing new attention on research and development of ethanol. Some states – especially those in the corn belt – are getting into the act too. The GLRCs Karen Kasler reports:

Transcript

The federal government is focusing new attention on research and
development of ethanol. Some states – especially those in the corn belt –
are getting into the act too. The GLRC’s Karen Kasler reports:


Now that gasoline is near or above three dollars a gallon, ethanol seems
to be everywhere. The Renewable Fuels Association says more than a
third of the gasoline in the U.S is blended with ethanol, an alcohol based
fuel made with the sugar found in corn and other grains. A 10 percent
ethanol/gasoline blend can be used in every vehicle on the road, but
many politicians and consumers are very interested in the 85 percent
ethanol blend – E-85 – as an alternative fuel for cars and trucks. But
getting E-85 to drivers who have cars which can use it isn’t that easy.


Tadd Nicholson with the Ohio Corn Growers Association, says part of
the problem is the big oil companies have banned E-85 pumps under the
canopies at branded stations.


“Oil companies don’t own ethanol production. They own oil refining,
and so that’s their profit center and that’s where they get their fuel and so
they have a lot of control over that. They don’t own ethanol. I don’t
know why. They should, but they aren’t in the ethanol ownership
business yet. I say ‘yet’.”


The governors of Wisconsin and Minnesota have asked the big oil
companies to change their E-85 policy, and some states have been
encouraging independent gasoline dealers to put in E-85 pumps for a few
years.


But others, such as Ohio, have been lagging behind in the trend. Only
recently has Ohio launched a new energy action plan that sounds
ambitious, when it comes to providing access to ethanol to drivers.


LeeAnn Mizer is with the Ohio Department of Agriculture.


“The goal is to triple the amount of E-85 pumps available to Ohio
consumers by the end of 2006.”


That sounds like a lot – but it’s not, says Dwayne Seikman heads up the
Ohio Corn Growers Association.


“Tripling’s a nice start. There’s six… that would go to 18. But with over
150,000 vehicles in the state of Ohio, that’s not enough to cover the
effort.”


Since corn is Ohio’s top crop… it would seem to make sense. But unlike
other states in the corn belt, there are no ethanol plants in operation in
Ohio, though there are at least three under construction, and ethanol
supporters say the state is way behind its neighbors when it comes to
getting ethanol pumps at service stations.


Sam Spofforth is executive director of Clean Fuels Ohio.


“I’ll be honest, we’d like to see a lot more and we think a lot more is
certainly very possible. Indiana, they’re up to about 25 to 30 stations.
Illinois has over a hundred. Minnesota has almost 200 at this point.
Even places like Arizona are putting in E-85. They don’t make any corn
in Arizona. We think Ohio can do a lot more.”


Some critical studies have found that ethanol has a high energy cost with
low benefits – ethanol supporters say that’s been debunked. Whether
ethanol makes economic or ecological sense or not is still not certain.
But one thing is certain – cars using ethanol blends need to fill up more
than those using regular unleaded gasoline.


Robert White with the National Ethanol Vehicle Coalition says that’s
offset because typically ethanol-blended fuels cost less than regular
unleaded gas.


“Well, no doubt the fuel economy is the only negative with E-85, and we
tell folks that is where the price differential hopefully is there to make
E-85 use a wash.”


Part of the reason the price is lower is because the ethanol industry is
heavily subsidized by the government. Those lower costs would quickly
disappear if the subsidies were removed. Because ethanol is cleaner
burning, many support further development and use of the renewable
fuel.


General Motors is increasing the number of vehicles it produces that can
burn ethanol. Ford already produces E-85 burning cars and trucks.
However, many believe for ethanol production to be truly efficient,
farmers will have to start growing crops such as switch grass for ethanol
because corn requires too much fossil fuel based fertilizer and other
inputs to make it a permanent solution.


For GLRC, I’m Karen Kasler.

Related Links

Marketing a By-Product of Ethanol

  • Ethanol plants are being built all over the corn belt. 97 plants are operating and another 34 new plants or expansions are underway, according to the Renewable Fuels Association. A by-product of the process is corn mash, or distillers grain. The distillers are hoping to sell it all to nearby livestock farms. (Photo by Lester Graham)

The federal government has called for more renewable fuels for cars and trucks over the next few years. Ethanol from corn is expected to meet much of that demand. As ethanol production increases, the distillers are looking for ways to make money on some of the by-products of the process. The GLRC’s Lester Graham reports on how the ethanol distillers might market what’s left over after turning corn into ethanol:

Transcript

The federal government has called for more renewable fuels for cars
and trucks over the next few years. Ethanol from corn is expected
to meet much of that demand. As ethanol production increases, the
distillers are looking for ways to make money on some of the by-
products of the process. The GLRC’s Lester Graham reports on
how the ethanol distillers might market what’s left over after
turning corn into ethanol:


(Sound of construction)


New ethanol plants are being built every year. 97 plants are in
operation today and the Renewable Fuels Association indicates 34 new or
expanded plants are under construction. The ethanol refinery
industry is gearing up for the expansion that the government wants.


Ethanol plants are basically giant corn alcohol stills. They produce
huge batches of – well – moonshine, but like moonshiner stills,
there’s a corn mash left over. It’s called distillers grain, and with
all the new plants coming online, there’s going to be a lot more of the
by-product in the future. Distillers grain can be used as livestock feed.
So, the agricultural industry is trying to get more cattle farmers and
others to buy it.


Tracy Jones is a farmer in northern Illinois. He says the agriculture
industry and the ethanol plants that want to get rid of the distillers
grain cheaply, have been encouraging farmers to expand their
livestock operations.


“And I know some producers that are maybe expanding. It’s a
good deal, but it’s not that good of a deal, and there’s a lot of other
issues that go into the cattle feeding business besides just getting
cheap feed.”


Jones has been feeding wet distillers grain from Wisconsin to his
cattle for about a year. Jones says the distillers grain makes sense
as long as the price doesn’t get too high.


“We need to buy it cheaply. We’re basically using it as a corn
replacer. So, when we have cheap corn, you still need to buy the
by-products cheaply also.”


Jones says his cattle are gaining weight at about five-cents a pound
cheaper using distillers grain as part of the mix of feed. Part of the
reason is the price is lower, but distillers grain has another
advantage… it’s higher in protein than plain corn. It’s got about the
same protein content as soybean meal.


That makes Jason Anderson think this stuff might be good to
export overseas as a food for people. Anderson is the Economic
Development Director for the city of Rochelle, Illinois. An ethanol
plant is being built in his city. With a couple of major railways and
a cargo container transfer station in his town, exporting dried distillers
grain would be easy. Because of the nation’s trade deficit, about
half the cargo containers go back to their original country empty.
Anderson says the by-product could be dried to a sort of high-
protein corn meal and shipped.


“Dried distillers grain could be put into intermodal containers,
which are sealed containers, put on a train and sent to the west
coast. They could also be shipped over the Pacific Ocean to starving
countries on the other side of the world.”


Corn tofu, anyone?


Exporting dried distillers grain as human food overseas hasn’t been
discussed much, but shipping it to cattle feedlots in Texas and
other cattle country has been discussed. Agriculture experts think
the ethanol plants located in the corn-belt won’t find enough
livestock in the immediate area to buy the product.


“At this point, where the livestock are and where the plants are
there’ll be a lot of them that has to be shipped.”


Jim Hilker is an agriculture marketing expert at Michigan State
University. He says he’s not sure the ethanol plants will make
much money on distillers grain, especially if they have to ship it to
cattle feedlots out west. That’s because they’ll have to dry the
product… and that adds to the cost.


“The first ones, I think, are making some money before we get
saturated on this, and I think if we put a system for handling it and
stuff in place, they’ll probably. But, if they can more than cover
the cost – remember, otherwise there’s disposal fees too. So, a
break-even here is a pretty good deal.”


So if the distillers just recover the drying and shipping costs, it
would be better than paying to dump the distillers grain in a
landfill.


But farmer Tracy Jones says he thinks the ethanol manufacturers
have already figured out the by-product will be abundant… and
they’re still counting on making some money on it.


“When they do their financials for their ethanol plant, they don’t
plan on giving this product away. So, they need to get something
for it.”


Jones says he’s noticed the ethanol producers don’t call distillers
grain a by-product of the process. They call it a co-product. He
thinks that’s a little marketing ploy that indicates the ethanol
plants definitely plan to demand a good price for the livestock feed,
regardless of the glut on the market.


For the GLRC, this is Lester Graham.

Related Links

Epa Targets Ethanol Plants for Cleanup

The U.S. EPA is finishing a 17-month study of the emissions at ethanol plants in the Great Lakes region. As a result, the EPA is asking ethanol producers to clean up their plants. The Great Lakes Radio Consortium’s Jonathan Ahl reports:

Transcript

The U.S. EPA is finishing a 17-month study of the emissions at ethanol plants in the
Great Lakes region. As a result, the EPA is asking ethanol producers to
clean up their plants. The Great Lakes Radio Consortium’s Jonathan Ahl reports:


The tests of the ethanol plants show unexpectedly high levels of carbon dioxide,
methanol, and formaldehyde in their emissions. Monte Shaw is a spokesperson for the
Renewable Fuels Association. He says the industry will comply with the EPA’s request:


“All of the industry is committed to doing whatever’s necessary, if anything. Some plants won’t have
to change a thing. But if there are some where the EPA wants to make modifications, we’re
committed to working with them, and addressing their concerns as quickly as possible.”


Shaw says most bigger plants already have the controls in place, and the smaller ones
that are in violation will comply with the request. Critics of the EPA including the Clean Air
Trust and the American Lung Association say the changes need to be a requirement, not a
voluntary program as it is now.


For the Great Lakes Radio Consortium, I’m Jonathan Ahl.