The Attractiveness of Ethanol

  • The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend. (Photo courtesy of the National Renewable Energy Laboratory)

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Transcript

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Crude oil prices spiked a little because of Iran’s long-range missile testing and revelations of a secret nuclear facility.

But analysts think for the next several months we’ll actually see oil prices go down – maybe to around $30 a barrel, less than half of what it is now.

And that could hurt demand for fuels such as ethanol.

But the government has mandated the nation produce more ethanol.

Dan Flynn is an analyst with the trading firm, Alaron.

“Obviously the government definitely wants to push this through. However, the price of crude oil and gasoline, if that goes down, generally people look not to look for alternative sources of energy.”

One way to use more ethanol is to mix higher amounts with gasoline.

The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend.

For The Environment Report, I’m Lester Graham.

Related Links

Sampling a New Crop: Sugar Corn

  • Todd Krone researches corn for Targeted Growth, a bio-energy company. Targeted Growth is tweaking corn genetics to produce 'Sugarcorn,' a variety with high amounts of sugar and biomass. The hope is the plants can be converted into ethanol cheaply. (Photo by Shawn Allee)

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

Transcript

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

I’m just outside an ethanol plant in central Indiana and its pretty much like most ethanol
plants. There’re a lot of semi-trucks going by and they’re loaded with yellow corn kernels.


Most ethanol plants grind corn kernels for starch, they let that starch turn into sugar, then
they brew the sugary juice into ethanol. Now, this whole process would be easier and
cheaper if we could make ethanol directly from sugary plants instead of starchy grain
kernels like corn.


Pretty quick here, I’m gonna meet a guy who’s trying to make corn a plant that’s easy to
grow in the Midwest but produces sweet juice – not starchy corn kernels.

“If you walk over here, these are our sugar corn hybrids.”

I’m with Todd Krone. He’s a researcher with a company called Targeted Growth. He walks me
through a test plot of a plant nicknamed ‘Sugarcorn.’ He pulls off a ear of corn and pulls back the
leaves.

(sound of leaves being pulled back)

The ear is almost bare.

Allee: “There’re just a few stray kernels developing, very few.”

Krone: “Yep. A few got through.”

Krone says this plant avoids making corn kernels. Instead, it puts energy and sugar into the
stalk. He can prove it with a taste test – right here in field.

He snips a piece of stalk.

(sound of snipping)

And pulls out a little press.

Krone: “You squeeze some of the juice to see how much sugar’s there. It’s up to you, if
you like, you could put on on your finger and taste. Is there sweetness?”

Allee: “Yeah, it’s definitely sweet. It’s definitely got a sweet tinge to it.”

Krone: “It might be a bit sweeter than pop might be.”

Krone says tests show Sugarcorn juice is as sweet as juice from sugar cane. He says this means
America could have a new plant that boosts ethanol production – but doesn’t compete with food,
and uses equipment farmers already have.

Krone: “For the farmer, not much changes until harvest when some logistics still need to
be worked out.”

Allee: “Obviously if you’re selling a lot of this corn, you’d be making a good deal of profit,
hopefully, what’s in it for the rest of us in terms of the success or failure of this, for drivers
and everybody else?”

Krone: “I would say, hopefully, it results in cheaper ethanol that can compete with cheap
oil. And then meeting that mandate to get more and more ethanol produced.”

Well, that’s the idea, but Targeted Growth would have to change more than just corn plants to
succeed. They’de have to change how at least some ethanol companies do business. And some
ethanol companies have some tough questions about it.

“How could you handle sugarcorn? How would you store it?”

This is Jeff Harts. He works at Central Indiana Ethanol. Harts says he likes the idea of using
sweet corn juice to make ethanol – it could be efficient. But he worries about getting enough to
run an expensive operation like his. He has no problem finding corn kernels.

“It’s a consistent flow of corn and we need that consistent flow to keep going. That’s why
we have storage, the farmers have storage. That’s why we have a local grain elevator
network to ship corn to us to keep that flow steady 12 months out of the year.”

Harts’ company might be a bit reluctant to change right away, but ethanol producers will have
find alternatives to the corn kernel. The government is capping how much ethanol can come
from corn starch.

As those requirements phase in, alternatives like Sugarcorn might look sweeter than they do
now.

For The Environment Report, I’m Shawn Allee.

Related Links