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Ethanol

This is part of a series of general presentations that will be regularly updated by NCGA through 2012. Feel free to reuse this as needed, in your own PowerPoint template if you wish, with the notes attached on each slide. Delete this slide before using.

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Ethanol

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  1. This is part of a series of general presentations that will be regularly updated by NCGA through 2012. Feel free to reuse this as needed, in your own PowerPoint template if you wish, with the notes attached on each slide. Delete this slide before using. Please forward any recommendations for additions or changes to this presentation, or other topic areas, to the NCGA Communications Office.

  2. Ethanol Providing Energy Security, Rural Jobs and Environmental Benefits

  3. Producing Ethanol from Corn One bushel of corn (56 pounds) produces 2.8 gallons of ethanol and …

  4. Corn Farmers Meet All Needs • Corn farmers are confident we can meet all growing needs for food, feed & fuel • In 2011, we harvested a projected 12.4 billion bushels, for a total supply of 13.6 billion bushels.

  5. Ethanol For Fuel Security • Truman National Security Project’s “Operation Free” rates fuels across five factors: • Instability of Producer Country • Opposition to American Values • Climate Disruption • Possibility of Threat to Supply Chain • Cost Spike Volatility

  6. Ethanol for Fuel Security • The scorecard gives ethanol great marks • First or second place across the board

  7. 1. Instability of Producer Country “States with large oil supplies and reserves are more likely to experience high levels of corruption, have little or no democratic accountability, and tend to lack fiscal transparency.” www.operationfree.net

  8. 2. Opposes American Values “Buying oil from autocracies often means using one hand to fund regimes that undermine us, and then using the other to fund our military and diplomats to fight them.” www.operationfree.net

  9. 3. Climate Disruption “In terms of climate disruption, electricity generation is the most harmful. Electricity accounts for 30% of U.S. greenhouse gas emissions, primarily from the burning of conventional coal.” www.operationfree.net

  10. 4. Supply Chain Threat “The OPEC cartel creates a particularly significant security threat because of its ability to withhold oil from the global market, regardless of where we source our oil. While 50% of the U.S. oil supply comes from OPEC nations the cartel possesses even greater power, due to its control over global supplies and reserves.” www.operationfree.net

  11. 5. Cost Spike Volatility “OPEC controls approximately 40% of daily global oil supplies. OPEC nations have previously acted in concert to keep supply low relative to demand. In 1999, OPEC cut production supplies, which led to a spike in prices from which they subsequently profited.” www.operationfree.net

  12. Ethanol for Fuel Security • In 2010, we made and used enough ethanol to displace the need for 445 million barrels of foreign oil. • This is the equivalent of 13 percent of total U.S. crude oil imports.

  13. Ethanol’s Economic Impact • Each year, the Renewable Fuels Association provides a thorough analysis of the impact of the ethanol industry on the U.S. economy Source: RFA

  14. Ethanol’s 2010 Economic Impact • 200 plants in 26 states with a capacity of 13.8 billion gallons • An estimated 743 million gallons of new capacity were brought online during 2010 and at year’s end 840 million gallons of new capacity were under construction • 2010 ethanol production was 13 billion gallons Source: RFA

  15. Industry Expenditures in 2010 • $1.4 billion in capital expenditurefor new construction • $23.9 billion for ongoing production expenses • $1.5 billion for research and development Source: RFA

  16. Benefits for 2010 Source: RFA

  17. Environmental Benefits • Using ethanol in place of gasoline helps reduce CO2 emissions • In 2010, ethanol use cut greenhouse gas emissions by 21.9 million tons • This is like removing 3.5 million vehicles from the road

  18. Improving Ethanol Efficiency How Production Has Improved Between 2001 and 2008 28% less thermal energy used per gallon 32.1% less electricity used per gallon 5.3% Higher ethanol yield per bushel Source: “Detailed Report: 2008 National Dry Mill Corn Ethanol Survey,” Dr. Steffen Mueller, May 2010

  19. Improving Ethanol Efficiency Energy Use, Energy Balance For every unit of energy going into ethanol, 2.3 units of energy are now produced Source: “2008 Energy Balance for the Corn Ethanol Industry,” USDA, June 2010

  20. Ethanol’s Benefits • Ethanol production reduces dependence on foreign oil. • It promotes energy security and independence. • It provides a good and growing market for U.S. grown corn. • It is a sustainable and renewable fuel. • It helps the rural economy.

  21. Thank You

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