To the Editor:

In its editorial page on National View “End costly ethanol subsidies,” the article failed to provide its readers any context, mislead them about the nature of U.S. ethanol production and offered no alternative to replace America’s addiction to oil. The amount of ethanol produced nationally last year was about equal to the amount of oil this country imported from Saudi Arabia. A study by Merrill Lynch cites that gasoline would be about $35 cents more without ethanol as a product in the motor fuel supply.

First, calling for an end to tax credits for ethanol while ignoring the billions of PERMANENT tax subsidies for Big Oil (the World Bank cites $500 billion last year) is as inequitable as it is shortsighted. Despite all members of Congress wanting more renewable energy technologies, they come before Congress with hat in hand for high risk investment. The oil industry, by comparison, only lobbies when the permanent subsidies it enjoys are threatened.

Second, American ethanol is a success story. Only lamenting the value of the tax credit for ethanol without discussing the economic benefits ethanol is misleading. For example, federal tax revenue generated by the production of ethanol and use of ethanol totaled more than $8 billion in 2009, $3 billion more than the value of the tax credit. Jobs and economic opportunity delivered to hundreds of rural communities further add to the value of investment in domestic ethanol production.

Third, the article suggests there are better technologies available without providing any evidence. There is no gasoline alternative technology that can match ethanol’s availability, production volume, or oil displacement benefits. Moreover, continued investment in ethanol is required to ensure promising next generation biofuel technologies, such as cellulosic ethanol for commercialization. Ending investment in ethanol will result in more oil consumption and severely curtail investment in new renewable fuel technologies.

Accordingly, this is a question of priorities. If the goal of assumption of the article is a level energy playing field, then it should call for the elimination of all tax provisions benefitting every energy industry – oil, natural gas, coal, nuclear, wind, solar, etc. Finally, if the real priority is ending our addiction to oil, then eliminating the permanent tax breaks for Big Oil and investing those dollars in renewable fuel technologies should be our goal.

Bob Sather
Wisconsin Bio Industry Alliance
11010 161st Street
Chippewa Falls, WI 54729

The report, published by the Coordinating Research Council (CRC), was due to test 16 engines manufactured between 2001 and 2009, but has only conducted testing on half thus far.  In fact, testing has only been completed for four engines.

It is troublesome that the auto industry is drawing conclusions from a study that is nowhere near finished when other third party research, and even the EPA, has suggested that E15 is safe for recent engine models.

CEO of Growth Energy, Tom Buis, said, “The EPA has told us in writing that they intend to complete their testing on E15 before making a decision, and we are confident they will.”

Why hasn’t the auto industry done the same?

Buis added, “We are also confident that the testing will show what we already know: that E15 can run just fine in today’s modern engines, all while creating good paying jobs here in America.”

For more details about the situation, check out this story at BrighterEnergy.org.

Read more about the project in this article in Ethanol Producer Magazine.

The workshop will include a morning “lecture” session and and afternoon “hands-on” session. Speakers will include biofuels experts, business leaders, state officials and educators from Wisconsin.

The program will be held on Saturday, April 10, 2010 from 8:30 a.m. to 4:00 p.m. at Fox Valley Tech College’s Agriculture Center in Appleton.

Registration is required.
Workshop Fee: $25.00*
Registration deadline: 4/5/2010
* WSSBPP members receive a $25.00 discount (cost is free)

• The researchers have successfully replaced up to 20 percent of flour in bread products with distillers grain flour, significantly increasing the protein and fiber content of the products.
• The distillers grain flour can provide extra protein for people in developing countries where meat is scarce.
• That means ethanol plants are able to provide food AND fuel for people around the world.

“Bio Industry Basics” is a series of weekly facts from the Wisconsin Bio Industry Alliance highlighting the positive benefits of bio fuel, bio power, and bio products production and use in Wisconsin.

Bio Industry Basics 2 Radio Actuality

• Ethanol is primarily produced from the starch contained in grains such as corn, grain sorghum, and wheat. Through a fermentation and distillation process, the starch is converted to sugar and then to alcohol.

• During the process of making ethanol in a dry mill operation, the first co-product produced is a high-protein animal feed, known as dried distillers grains with sollubles (DDGS). 

• The second co-product is CO_2, which is captured and marketed to the food processing industry for use in carbonated beverages or the production of dry ice.

• Wet-mill ethanol plants are also able to produce corn oil, corn sweetener, and starch.

Dinnen also pointed that through fractionation, food and fuel can be extracted from the very same kernel, redefining the debate, with ethanol on the side of food and fuel.  Indeed, according to Mr. Tolman, American corn exports are at an all time high.
The entire transcript can be found at:

http://www.ethanolrfa.org/objects/documents/1692/food_and_fuel_presser.pdf