Why Ethanol
Energy is the future. Ethanol is the bridge
The next time you're fueling up at the pump, consider this fact: 60 percent of the oil used in U.S. gasoline comes from countries other than the United States while the majority of ethanol used as a fuel additive in the U.S. is produced domestically from corn grown by American farmers.
Ethanol is a viable, homegrown energy alternative to foreign oil and is available today in E85 (85 percent ethanol/15 percent gasoline) and E10 (10 percent ethanol/90 percent gasoline) blends. Used as a clean-burning fuel additive, ethanol is a renewable fuel made from plants, usually corn. The industry is growing, with 124 ethanol plants operating now and 76 more under construction.
Cellulosic ethanol, produced from cornstalks, switch grass, wood chips and other agricultural wastes, is the next step in liberating the U.S. from foreign oil dependence and is a long-term solution that is only two to three years from becoming a reality.
Putting America in control with Ethanol
Ethanol can help the United States achieve energy independence and protect our environment in many ways:
- Lessens dependence on foreign oil – Since the OPEC oil embargo in the 70s, America has been involved in a national energy crisis that affects us all. The United States' dependence upon foreign oil is a national security problem and an economic security problem. Ethanol lessens that dependence and allows us the time we need to work toward a state of energy independence. President Bush says it best, “Our dependence on foreign oil is like a foreign tax on the American dream, and that tax is growing every year.“ (Loven, 2005).
- Reduces global warming – Ethanol is clean-burning and when used instead of gasoline, cuts greenhouse gas emissions by 18 percent to 29 percent a gallon according to the U.S. Office of Energy Efficiency and Renewable Energy. E85, an 85 percent ethanol/15 percent gasoline blend, produces 40 percent less carbon monoxide than regular gas and 20 percent less particle emissions and toxics. The use of 4 billion gallons of ethanol in 2005 reduced greenhouse gas emissions by 7.8 tons, the equivalent of taking 1.2 million cars off American roads. E85 made from cellulose can reduce emissions by around 70 percent as compared to gasoline.
- Powers flex fuel vehicles (FFVs) – E85, the 85 ethanol/15 gasoline blend, powers FFVs, reducing overall use of petroleum consumption and replacing it with a fuel produced or grown in the United States. Ethanol-fueled vehicles date back to the 1880s when Henry Ford designed a car that ran solely on ethanol. He later built the first flex fuel vehicle: a 1908 Model T designed to operate on either ethanol or gasoline. In the U.S., there are currently 26 car and truck models available that can run on E85. E10, a blend of 10 percent ethanol and 90 percent gasoline, can be used in any gasoline vehicle manufactured after 1980.
Look who's joining the ethanol solution
Each day, new ethanol projects are being announced, production is progressing at a fast pace and more and more people are becoming part of and investing in the ethanol solution:
- Government mandates for ethanol production – President Bush called for a government-mandated increase in renewable fuels and proposed to cut projected use of gasoline by 20 percent over the next decade, with nearly a five-fold increase in the production of ethanol and other alternative fuels for cars and trucks. His goal: 35 billion gallons of domestically produced alternative fuels by 2017.
- Big three auto companies committed to ethanol – Ford, General Motors and DaimlerChrysler have committed to producing 50 percent of their new vehicles as flex-fuel vehicles (FFVs) powered by E85 ethanol by 2010. Today, there are more than 6 million FFVs on the road that can run on E85 and currently more than 1,200 gas stations that sell E85 in the United States.
- Indy Racing League adopts ethanol fuel – Indy 500 goes green for the 2007 race with all 33 cars using 100 percent ethanol in their gas tanks. Drivers said it's a green fuel that improves mileage by 30 percent, which allows for smaller fuel tanks.
- Bill Gates invests in ethanol – Microsoft's Bill Gates invested in Pacific Ethanol (PEIX) to help fund the construction of an ethanol plant in Madera County, Calif.
- Richard Branson prepares for cellulosic ethanol – Virgin Atlantic Airways' Richard Branson is investing in cellulosic ethanol plants to make fuel that is derived from the waste product of the plant and considered to be the next energy step after corn ethanol.
- DuPont builds cellulosic ethanol plant – DuPont plans to open its first pilot plant to manufacture cellulosic ethanol in 2008.
The Future of Ethanol Investment Today
Ethanol is not only another viable fuel choice; it's also a choice for national security and your opportunity to be part of the American solution. New corn-derived ethanol plants, cellulosic ethanol plants, feed stock suppliers, railroads, trucking companies and many others are coming up with plans to further the production and transportation of ethanol.
The potential for investors is wide-open. Show your support for an American-made fuel alternative that not only protects the environment but also reduces our reliance on imported oil. Join our blog today to learn more.