Wednesday, July 26, 2006

Is Ethanol / E85 Fuel the Solution?



I've recently received a number of emails calling for me to Kick the Oil Habit by supporting E85 which is a liquid fuel made up of 85% ethanol and 15% regular gasoline. Having previously had my doubts about ethanol I emailed fellow blogger the Engineer Poet seeking his opinion. A large part of this resulting post is based directly on his reply and as such the credit belongs to him.

So is E85 fuel the answer to America's (and the world's) addiction to oil?

E85 fuel is not the solution. It is not even a part of the solution, it is a part of the problem. Here's why, in a nutshell:

All US vehicles can burn 10% ethanol (E10), but the US does not even produce half as much ethanol as universal E10 would require. We make about 5 billion gallons of ethanol, but use 140 billion gallons of gas.

E85 and "flex fuel" is a loophole for the automakers to sell guzzlers without having to pay CAFE penalties. It makes the problem worse. Ending the loophole probably means ending E85, because there is no other reason for it to exist.

Since the best estimate is that every gallon-equivalent of ethanol takes about 4/5 of a gallon-equivalent of other fossil fuel to make it, each gallon of E85 really represents about 0.6 gallons-equivalent of various fossil fuels. Since most flex-fuel vehicles get roughly 2/3 the mileage on E85 as they do on gasoline, they burn about 90% as much fossil energy even at their best.

Even if we can use "cellulosic ethanol" to reduce the inputs of fossil-derived fertilizer and whatnot, we can't make enough no matter what we do. The efficiency of the average gasoline-powered vehicle is about 15%, and we just can't grow enough inputs to make up for throwing 85% of our produced energy away. The most efficient use of biomass is in local combined heat and power plants, not as a feedstock for ethanol.

Low corn prices and high oil prices, and a government subsidy of 51 cents per gallon have fuelled unprecedented growth of the ethanol industry. In the case of the U.S. ethanol industry, fossil fueled trucks ship the fuel halfway across the country from the population sparse corn belt to population and car dense states like California and Texas. Science magazine found only a 13% reduction in CO2 emissions for bioethanol over gasoline (and only 11% for E85 fuel). U.S. government federal records show a single ADM corn processing plant in Clinton, Iowa generated nearly 20,000 tons of pollutants including sulfur dioxide, nitrogen oxides, and volatile organic compounds in 2004. The EPA considers an ethanol plant as a "major source" of pollution if it produces more than 100 tons of any one pollutant per year. From an emissions standpoint it is far preferable to drive a fuel efficient gasoline car than a low efficiency flex fuel vehicle running on E85.

E85 fuel is not a solution. It is a distraction, like hydrogen vehicles. Further, every E85 vehicle is also a gasoline-compatible vehicle. It will maintain demand for petroleum as long as it is on the road. If you want to end oil addiction you have to get rid of the things which use it.

E85 ethanol fuel may make a small contribution now, but it is a dead end. If we want to really be free of fossil fuels (including imported oil), we have to re-think things as completely as changing from riding horses to driving motor cars.

Ethanol has already created an addiction of its own. The farmers and agribusiness interests which got into it found it hugely profitable, and they have big investments in its continuation. Even if you developed a better way of using corn today, you'd still have a lot of money lobbying to use it for ethanol, and even force it to be used for ethanol.



This is already a race between technologies which can make us independent of fossil fuel, and technologies which get subsidy money. In that race, the subsidy seems to win every time. At least 43 percent of Archer Daniels Midland's annual profits are from products heavily subsidized or protected by the American government. For every $1 of profit earned by ADM's ethanol operation (the largest in the U.S.), it costs taxpayers $30. If you subsidize a technology which can only replace half our gasoline (and none of our diesel, jet fuel, or anything else), you're probably going to be stuck with it.

A hobbyist wrote an article about his home-built plug-in hybrid electric vehicle (PHEV). He published this article in Mother Earth News... in 1978.

We don't need any new technology. We could be building these cars today. Heck, we could have been building them in 1995 (when the CARB ZEV mandate came in)... or maybe even 1985. They would have been crude, but they would have gotten the job done. We can do far better today, of course.

People finally got fed up and started building their own PHEV's out of Toyota Priuses. It's time to quit the excuses, both making them and accepting them.

CAFE regulations utterly failed to contain U.S. motor-fuel consumption. This is not opinion, this is historical fact. Now the E85 fuel campagin wants to do the same thing again, but "reduce" consumption with E85 instead of directly cutting gallons-per-mile. You'll get the same result as before - if driving doesn't cost more, people will continue to drive as much or more.

There are roughly 200 million light-duty vehicles in the USA. One recent news item says that there will be all of 6 million flex-fuel vehicles by 2007. That's a whole 3%.

The average flex-fuel vehicle is a guzzling truck (because they get the biggest CAFE preference from it). If those trucks get 13 MPG on E85, and they drive the national average of 13,000 miles/year, those 6 million vehicles would consume 5.1 billion gallons of ethanol. That's roughly the same as the total production capacity of the nation.

The E85 fuel campaign is currently sponsoring a road trip to highlight the usage of E85, but also the difficulty of driving a car solely on E85 due to its lack of availability.


the electric Tesla Roadster - 250 mile range, one cent a mile, 0-60 in 4 seconds, 130 mph top speed - photo from Autoblog Green

However, had this trip been made in a Tesla Roadster or tZero from AC Propulsion, it could have instead highlighted how EASY it is to get electricity wherever you are... even if you never stop at a filling station! Using non-toxic lithium-ion batteries they have a 250 mile range, charging overnight from an electric outlet.

E85 fuel is a distraction, a diversion, a red herring. Just as the switch to "hydrogen economy" (remember that?) was before it. Both require huge investment, new infrastructure and will not lead to a post-oil economy. The hydrogen economy was promoted principally by both automakers and oil companies as a stalling strategy to avoid having to change the way they currently do business. Oil companies were also aware in the unlikely event that the hydrogen economy did take off (with huge taxpayer subsidies) that they would be supplying hydrogen produced from natural gas which they were already profitting from. The automakers sat around lamenting the fact they couldn’t start to build cars as there are hardly any hydrogen filling stations and the energy companies would not open commercial hydrogen filling stations as there is no demand for them. While appearing to want to do something, both the automakers and energy companies continued for a few more years with business as usual.


The Nissan Armada promoted on the E85 fuel site - with no fuel economy figures indicated

The campaign for E85 fuel is somewhat similar. The automakers are eager to produce flex fuel vehicles which require a relatively cheap modification to the highly profitable gas guzzling SUVs they already produce. By backing E85 fuel they can continue to produce the highly inefficient vehicles while appearing to be green (as seen in GM's Live Green Go Yellow campaign). Car and Driver magazine estimates the CAFE loophole could have saved GM more than $200 million in fines in 2005 alone.

As GM admits the consumer can choose “to operate on gasoline or on a blend of 85% ethanol and 15% gasoline. So, you can choose the fuel that's best for you. That's good to know, because E85 fuel is not yet widely available.” In other words in the vast majority of cases your new flex fuel vehicle will still be running on regular gas. Charter members of the National Ethanol Vehicle Coalition (NEVC), which promotes E85 fuel, when it was set up in June 2000 include GM, DaimlerChrsyler, and Ford.

Meanwhile E85 fuel is also been promoted by organisations such as the National Corn Growers Association, as well as regional and state corn growers organisations, associated agribusinesses and biofuel companies. All of which have a commercial interest in promoting E85 fuel. According to the Center for Responsive Politics, a clearinghouse on political donations, the agribusiness sector has funneled more than $190 million into federal election campaigns since the 2000 election cycle. In the NEVC’s bylaws its purpose is described as to "ensure that as decisions regarding the future of America’s use of alternative forms of transportation fuels are being made, ethanol has a role in the nation’s alternative transportation fuel market and support the expanded use of ethanol" and to "advance legislative proposals" to this effect. This seems to be regardless of whether ethanol/ E85 fuel is the best or is even a good solution to our energy challenges.

As the Engineer Poet points out in this post, burning fuel for transportation is very inefficient way of using energy. Whether you are fed up with the current use of petroleum for transportation for environmental, political or financial reasons E85 fuel is simply not the answer. What we need is a step change, as represented by moving from using gas burning vehicles to electric vehicles.

To encourage this, I urge you to sign this online plug in hybrid campaign asking automakers to produce plug-in hybrid electric vehicles (PHEVs).

Autoblog Green's exclusive interview with Tesla Motors' chairman

Tesla Roadster Video

Archer Daniels Midland (ADM) - the Largest U.S. Ethanol Producer

Vinod Khosla Debunked

Car and Driver Magazine on the Promise of Energy Independence through Ethanol

USA Today on the Ethanol Debate

Cutting Down Borneo's Rainforests to Make BioFuels

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Tuesday, July 26, 2005

Alternative Fuel: Ethanol Fuel Production Subsidies



I was recently taken to task by a reader for not giving more coverage to ethanol fuel (alcohol). I replied that I am yet to be convinced that ethanol is either energy positive or economically viable. I then forwarded her reply to the Engineer Poet who continued the correspondence resulting in a post entitled "the money-grubbing mendacity of the ethanol lobby" with accompanying calculations. In reply the original emailer sent me a press release from the "grassroots voice of the U.S. ethanol industry".

The Slate recently ran an article entitled "the ethanol subsidy is worse than you can imagine".

In it Robert Bryce reports that for the last generation, ethanol has been America's fuel of the future. But there has never been more hype about it than there is today. Green-energy analysts like Amory Lovins, environmental groups like the Natural Resources Defense Council, neoconservatives like James Woolsey, and farm groups like the American Coalition for Ethanol are all touting the biofuel.

Making ethanol, they claim, will help America achieve the elusive goal of "energy security" while helping farmers, reducing oil imports, and stimulating the American economy. But the ethanol boosters are ignoring some unpleasant facts: Ethanol won't significantly reduce our oil imports; adding more ethanol to our gas tanks adds further complexity to our motor-fuel supply chain, which will lead to further price hikes at the pump; and, most important (and most astonishing), it may take more energy to produce a gallon of ethanol than it actually contains.

The greens, hawks, and farmers helped convince the Senate to add an ethanol provision to the energy bill—now awaiting action by a House-Senate conference committee—that would require refiners to more than double their use of ethanol to 8 billion gallons per year by 2012. The provision is the latest installment of the ethanol subsidy, a handout that has cost American taxpayers billions of dollars during the last three decades, with little to show for it. It also shovels yet more federal cash on the single most subsidized crop in America, corn. Between 1995 and 2003, federal corn subsidies totaled $37.3 billion. That's more than twice the amount spent on wheat subsidies, three times the amount spent on soybeans, and 70 times the amount spent on tobacco.



The stickiest question about ethanol is this: Does making alcohol from grain or plant waste really create any new energy?

The answer, of course, depends upon whom you ask. The ethanol lobby claims there's a 30 percent net gain in BTUs from ethanol made from corn. Other boosters, including Woolsey, claim there are huge energy gains (as much as 700 percent) to be had by making ethanol from grass.

But the ethanol critics have shown that the industry calculations are bogus. David Pimentel, a professor of ecology at Cornell University who has been studying grain alcohol for 20 years, and Tad Patzek, an engineering professor at the University of California, Berkeley, co-wrote a recent report that estimates that making ethanol from corn requires 29 percent more fossil energy than the ethanol fuel itself actually contains.

The two scientists calculated all the fuel inputs for ethanol production—from the diesel fuel for the tractor planting the corn, to the fertilizer put in the field, to the energy needed at the processing plant—and found that ethanol is a net energy-loser. According to their calculations, ethanol contains about 76,000 BTUs per gallon, but producing that ethanol from corn takes about 98,000 BTUs. For comparison, a gallon of gasoline contains about 116,000 BTUs per gallon. But making that gallon of gas—from drilling the well, to transportation, through refining—requires around 22,000 BTUs.

In addition to their findings on corn, they determined that making ethanol from switch grass requires 50 percent more fossil energy than the ethanol yields, wood biomass 57 percent more, and sunflowers 118 percent more. The best yield comes from soybeans, but they, too, are a net loser, requiring 27 percent more fossil energy than the biodiesel fuel produced. In other words, more ethanol production will increase America's total energy consumption, not decrease it. (Pimentel has not taken money from the oil or refining industries. Patzek runs the UC Oil Consortium, which does research on oil and is funded by oil companies. His ethanol research is not funded by the oil or refining industries.)

Ethanol poses other serious difficulties for our energy economy. First, 8 billion gallons of ethanol will do almost nothing to reduce our oil imports. Eight billion gallons may sound like a lot, until you realize that America burned more than 134 billion gallons of gasoline last year. By 2012, those 8 billion gallons might reduce America's overall oil consumption by 0.5 percent. Way back in 1997, the General Accounting Office concluded that "ethanol's potential for substituting for petroleum is so small that it is unlikely to significantly affect overall energy security." That's still true today.

Adding more ethanol will also increase the complexity of America's refining infrastructure, which is already straining to meet demand, thus raising pump prices. Ethanol must be blended with gasoline. But ethanol absorbs water. Gasoline doesn't. Therefore, ethanol cannot be shipped by regular petroleum pipelines. Instead, it must be segregated from other motor fuels and shipped by truck, rail car, or barge. Those shipping methods are far more expensive than pipelines.

There's a final point to be raised about ethanol: It contains only about two-thirds as much energy as gasoline. Thus, when it gets blended with regular gasoline, it lowers the heat content of the fuel. So, while a gallon of ethanol-blended gas may cost the same as regular gasoline, it won't take you as far.

My latest post (July 2006) on ethanol and flex fuel vehicles can be found here:
Ethanol E85 Fuel

To support a real solution to our transportation energy challenges I encourage you to sign this online plug in hybrid campaign urging automakers to produce plug-in hybrid electric vehicles (PHEVs).

If you have comments I suggest the debate continues here.

Full Slate Article

American Coalition for Ethanol Press Release

Star Phoenix article criticising Pimental and Patzek's research

Rocky Moutain News' Coverage of the National Corn Growers Association Opinion

The Ohio Farm Bureau Federation's Coverage

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