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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.
Ethanol
Providing Energy Security, Rural Jobs and Environmental Benefits
Producing Ethanol from Corn
One bushel of corn (56 pounds) produces 2.8 gallons of ethanol and …
Dry Mill Process Wet Mill Process
17.5 pounds distillers dried grains with solubles,
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.
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
Ethanol for Fuel Security
• The scorecard gives ethanol great marks
• First or second place across the board
1. Instability of Producer Country
Electric-ity
Ethanol Nat. Gas Oil
0.12 0.10.45
3.37“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
2. Opposes American Values
Electric-ity
Ethanol Nat. Gas Oil
0.02 0.04 0.06
0.96“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
3. Climate Disruption
Electric-ity
Ethanol Nat. Gas Oil
8.05
3.93.56
6.74
“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
4. Supply Chain Threat
Electric-ity
Ethanol Nat. Gas Oil
0.66
0.12
0.58
3.72 “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
5. Cost Spike Volatility
Electric-ity
Ethanol Nat. Gas Oil
1.2
8.99.5
13.4“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
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.
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
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
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
Benefits for 2010JOBS INCOME TAXES
The ethanol industry
supported more than
400,000 jobs in all sectors
of the economy
The economic activities of the ethanol industry put $36 billion
into the pockets of Americans
$8.6 billion in federal taxes
and $4.8 billion in state
and local revenue
Source: RFA
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
Improving Ethanol Efficiency
28%less
thermal energy
used per gallon
32.1%less
electricity used per
gallon
5.3%Higher ethanol yield per bushel
How Production Has Improved Between 2001 and 2008
Source: “Detailed Report: 2008 National Dry Mill Corn Ethanol Survey,” Dr. Steffen Mueller, May 2010
Improving Ethanol EfficiencyEnergy Use, Energy Balance
Source: “2008 Energy Balance for the Corn Ethanol Industry,” USDA, June 2010
In Out
1
2.3For every unit of
energy going into ethanol, 2.3 units of energy
are now produced
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.