Is Ethanol Living Up to Its Hype as a Fuel of the Future?

US: The Bush administration, in its efforts to combat climate change two decades ago, promoted Ethanol - a fuel made from Corn - for its threefold benefits. Its usage would lead to a reduction in Carbon pollution, a decrease in the country's dependence on foreign oil, and provide a source of income for farmers. In 2007, Congress passed a mandate requiring refiners to increase the amount of biofuels mixed with gasoline supply by 5 times over 15 years. The Environmental Protection (EPA), Ethanol is estimated to release a minimum of 20% less greenhouse gases compared to traditional gasoline.

According to recent research, the congressional mandate may have done more harm than good for climate change, and the EPA is being criticized for being too optimistic. A new study from 2022 shows that the production and combustion of Corn-based fuel may be at least 24 percent more Carbon-intensive compared to gasoline. Despite being criticized by the biofuel industry and the Department of Energy (DOE), these findings challenge the common belief that Ethanol is a miraculous solution.

Despite the increasing popularity of electric vehicles and other sustainable options, Ethanol is surprisingly not on the way out. Politicians from varying ideological backgrounds persistently promote its usage, citing that it can achieve energy independence and mitigate climate change. However, Ethanol's continuing relevance in the political realm is not entirely due to its environmental benefits, but rather due to questionable scientific claims and the influence of the biofuel industry. Ultimately, Ethanol is only making sense as a political topic.

The Inflation Reduction Act, a significant climate bill by President Biden, has introduced the largest federal spending plan for biofuels in 15 years. However, the bill is now facing opposition from House Republicans due to Ethanol subsidies. A debate over the federal debt limit has placed the Republican politicians from eight Corn Belt states in a quandary, as they are opposing a proposal for raising the nation's debt ceiling and diminishing overall federal spending. They are concerned that the proposal would remove tax credits for the Ethanol industry, which they support staunchly and ultimately succeeded in opposing.

The Ethanol industry is rejoicing over the EPA's decision, for the second consecutive year, to lift the restriction on sales of E15 gasoline during the summer months. E15 gasoline, containing up to 15% Ethanol content, has previously been prohibited in warmer seasons due to concerns about smog. Despite automakers turning to electric vehicles, the Ethanol industry is urging the Biden administration to extend federal subsidies towards Ethanol-based sustainable aviation fuel.

Furthermore, Ethanol manufacturers are aiming to utilize Carbon-capture subsidies to construct pipelines for transporting Carbon from refineries to underground storage tanks.

The United States leads the world in Corn production with 13.7 billion bushels produced last year. A significant portion of this supply, approximately one-third valued at $20 billion, is used to produce Ethanol. Though biofuels can be produced using a variety of organic materials, roughly 90 percent of the nation’s supply is derived from Corn.

In the past few years, the Ethanol industry in the U.S. has seen remarkable growth. Despite falling well short of the 36 billion gallons expected by President Bush, the current annual rate of 15 billion gallons of Ethanol mixed into gasoline demonstrates significant progress. With nearly 200 refineries established in the country, the industry has almost doubled since the Bush era. During 2008 to 2016, Corn cultivation also saw an impressive rise of approximately 9 percent and up to 100 percent in some areas such as the Dakotas and western Minnesota. Furthermore, there has been a nationwide expansion of Corn land by over 11 million acres between 2005 and 2021, showcasing the significant growth of the Ethanol industry in the U.S.

Did you know that a quarter of all Corn land in the U.S. is dedicated to Ethanol production? That's an area of land equivalent to the combined Corn land in Minnesota and Iowa. This has significant global implications as the increased demand for Corn has driven up commodity prices leading to the expansion of biofuel crops like Soybeans and Palm, causing deforestation in the tropics, particularly in Indonesia and Brazil. This has resulted in the loss of fertile land that could have been used to grow food or capture Carbon.

Ethanol has failed to deliver on its climate promises, largely due to issues related to land use. The practice of growing more Corn for Ethanol requires increased use of Nitrogen fertilizer, which emits Nitrous oxide, a powerful greenhouse gas. The industry and DOE have dismissed a 2022 study which reports up to an 8% rise in fertilizer use tied to Ethanol production since 2007. Additionally, dedicating more land to Ethanol feedstocks means less land for planting climate-friendly food crops, Carbon-storing trees, or highly efficient renewable energy sources like solar panels.

According to a recent report by the Department of Energy (DOE), many lawmakers, federal agencies, and members of the biofuel industry are persistently advocating that Ethanol is a more environmentally friendly option than gasoline. Grain-based Ethanol could have greenhouse gas emissions up to 52% lower than those of gasoline.

Additionally, a 2018 study funded by the Department of Agriculture suggests that with the implementation of more sustainable growing practices, this figure could potentially reach as high as 70%.

There has been a recent surge in discussions and misunderstandings about the Carbon footprint of Corn Ethanol. According to sources, Corn Ethanol has a striking 46% smaller Carbon footprint compared to gasoline. However, critics of Ethanol argue that this calculation overlooks the full production cycle of Ethanol, which includes cultivation to processing, and it downplays the emissions resulting from land-use changes related to Ethanol.

According to research focusing on the complete production and usage cycle of Ethanol, it is discovered that it increases greenhouse gas emissions compared to gasoline. Additionally, Ethanol does not contribute to reducing air emissions like particulates, rather it elevates the quantity.

The Ethanol industry faces uncertainty over its future in an environmentally conscious world that is gradually transitioning towards electric vehicles. The number of electric vehicles on U.S. roads has increased from 22,000 in 2011 to 2 million in a span of ten years. The International Energy Agency has reported that one in every five vehicles sold worldwide this year will be electric. Considering this trend, Ethanol producers are exploring measures to sustain their industry, with a potential focus on sustainable aviation fuel as their next big push.

According to the Department of Energy, using Ethanol as jet fuel could have a significant positive impact on the environment, with potential to reduce greenhouse gas emissions by up to 153% compared to traditional petroleum-based fuel. However, like its use in cars, Ethanol presents certain challenges.

Nevertheless, the Biden administration has set an ambitious goal of producing 3 billion gallons of sustainable aviation fuel by 2030, and a bill called the Sustainable Aviation Fuel Act, which would allocate $1 billion in federal funds to promote growth in this industry, has been proposed. For fuels to qualify for subsidies under this act, they must emit 50% less greenhouse gas during their life cycle compared to oil-based jet fuel. As with any innovation, only time will tell if using Ethanol as jet fuel will deliver on its promises and live up to its potential as a more sustainable alternative to traditional fuels.