Alternative Energy Ethanol
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Alternative Energy Ethanol. Corn Marketing Program of Michigan & Michigan Corn Growers Association September 21, 2005. Michigan Corn Basics. Michigan Corn Basics 1.9 million acres planted per year Average 134 bushels per acre 255 million bushels harvested for sale
Alternative Energy Ethanol
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Alternative EnergyEthanol Corn Marketing Program of Michigan & Michigan Corn Growers Association September 21, 2005
Michigan Corn Basics • Michigan Corn Basics • 1.9 million acres planted per year • Average 134 bushels per acre • 255 million bushels harvested for sale • 45% of our corn shipped out of state • 35% of corn fed to livestock in-state • 7% of corn used for ethanol production
Michigan Corn Basics • Michigan Corn Basics • 1.9 million acres planted per year • Average 134 bushels per acre • 217 million bushels harvested for sale • 45% of our corn shipped out of state • 35% of corn fed to livestock in-state • 7% of corn used for ethanol production
Ethanol Policy • Energy Policy Act of 2005 • Signed August 8, 2005 • Renewable Fuel Standard (RFS) • Phase-in of RFS from 4 billion gallons in 2006 7.5 billion gallons in 2012 • Farm Bill • Potential legislation • 10% ethanol mandate or RFS for Michigan • Btu legislation
Ethanol Policy • States requirements and bans • 10% ethanol requirements • Effective in MN, HI, MT • Proposed in MI, WI, MO, NE • MTBE bans • 17 states implemented • 8 states not yet implemented
What is MTBE • MTBE - Methyl tertiary butyl ether (MTBE) is a fuel oxygenate derived from petroleum. • MTBE has been proven to pollute groundwater resources • foul taste or odor • carcinogen for humans • MTBE banned in several states as an oxygenate • The elimination of MTBE from the nation’s fuel supply will create increased demand for ethanol as an oxygenate by 3.6 billion gallons Statistics according to NCGA
Environmental Benefits of Ethanol • Reduces tailpipe carbon monoxide emissions by as much as 30 percent • Reduces exhaust volatile organic compounds (VOC) emissions by 12 percent • Reduces toxic emissions by 30 percent • Reduces particulate matter (PM) emissions by more than 25 percent Statistics according to EPIC
Ethanol Usage • Ethanol Usage & Markets • E85 • E10 • E-diesel • Aviation ethanol • Fuel cells
State Ethanol Utilization Michigan • Michigan - 5 billion gallons of gas • 10% blend = 500 million gallons of ethanol • Would use 178 million bushels of corn
Ethanol Production • Michigan Ethanol, Caro • Economics • 40 million gallon nameplate capacity • 15 million bushels of corn • 35-41 jobs • Narrowed/closed bases
Ethanol Plants – Under Construction • Great Lakes Ethanol, Blissfield • Working group formed Jan ‘03 • Feasibility study complete • Stock offering near completion • Groundbreaking held August 25, 2005 • Economics • 57 million gallons • 15-17 million bushels of corn • 35-41 jobs
Ethanol Plants – Under Construction • U.S. Bio Superior Ethanol, LLC, Lake Odessa • Working group formed • Feasibility study complete • Groundbreaking – September 15, 2005 • Economics • 45 million gallons • 16 million bushels of corn • 40 jobs
Ethanol Plants – Under Construction • Andersons Ethanol, LLC - Albion • Owned by The Andersons • Township board approved • Groundbreaking Sept. 15, 2005 • Economics • 55 million gallons • 20 million bushels of corn • 35-41 jobs
Proposed Ethanol Production • Marysville Ethanol, LLC – Marysville • Private partnership of investors and Michigan energy companies • Plant to be located next to Marysville Hydrocarbon’s industrial complex • Economics • 50 million gallons • 18 million bushels of corn • 45 jobs
Michigan Ethanol Usage • Increased Michigan Usage • ’99 29 million gallons • ’00 70 million gallons • ’01 80 million gallons • ’02 120 million gallons • ’03 150 million gallons
National Ethanol Usage Nationally • U.S.-139 billion gallons of gas in ‘03 • 10% blend = 14 billion gallons of ethanol • Would use 5 billion bushels of corn
National Ethanol Production • 90 plants currently operating • 1.41 billion bushels of corn • 3.95 billion gallons of ethanol • 17 plants under construction • 2 increasing capacity • Producer owned plants • comprise 40% of production
National Ethanol Production • ’84-500 million gallons • ’90-900 million gallons • ’94-1.35 billion gallons • ’00-1.63 billion gallons • ’02-2.1 billion gallons • ’03-2.8 billion gallons • ’04-3.4 billion gallons • ’05-4.34 billion gallons* (estimate)
Ethanol Usage • Ethanol Usage & Markets • E85 • E10 • E-diesel • Aviation ethanol • Fuel cells
E10 • 10 percent ethanol, 90 percent gasoline • Primary use of ethanol in Michigan • Warranted for use by all automobile manufacturers • Combination produces a higher octane, cleaner burning fuel for consumers • In MI sold at • most Speedway and Sunoco • some Citgo and Marathon stations. • some independently owned stations chains included By-Lo and Speedy-Q
E85 • 85 percent ethanol, 15 percent gasoline • Warranted for use only in Flexible Fuel Vehicles (FFVs) • Burns cleaner than gasoline – 25 percent reduction in smog-forming pollutants; 35-40 percent in greenhouse gas emissions • E-85 sold at 5 locations - handout
What is an FFV? • Flexible Fuel Vehicles (FFVs) are specially designed to run on any ethanol blend up to 85 percent • FFV may use a blend of gasoline or E-85 from 100 percent ordinary unleaded to 85 percent ethanol • Engine Control Module reads the fuel blend – oxygen • Complete listing of FFVs www.E85 fuel.com
Aviation Fuel • 100 low lead (LL) is the only remaining leaded product currently in the U.S. fuel supply • Ethanol properly blended with lubricity additives show great promise as an aviation fuel • The ethanol in the fuel helps to prevent fuel system freezing and also provides excellent detonation margins
E-diesel • Ethanol blended with diesel fuel • Ongoing research to reduce smoke and hazardous emissions from diesel fuel • Research is also looking for optimum blend of ethanol and diesel • May help to eliminate sulfur in diesel, a primary source of acid rain
Fuel Cells • Fuel cells are expected to become next great innovation in the automobile industry • Fuel cells need a hydrogen source for the chemical reaction to in turn create electricity • Ethanol has a hydrogen rich molecular structure • Ethanol is easy to transport and safe