GROW 16061 Flipbook 2016-06-02 R1 - Growth Energy · 2019-12-20 · June 2016 GrowthEnergy.org 1...

EthanolAmerica’s Homegrown Fuel

Ethanol is an advanced biofuel that we use every day and it is moving America forward. • It is renewable, homegrown and already 10 percent of the gasoline in our tanks. • It burns cleaner and cooler than oil and increases octane, which is good for our

environment and our car engines. • Without ethanol, we would turn back the clock by adding chemicals that produce

cancer-causing emissions back into gasoline, once again becoming more dependent on foreign oil and paying higher gas prices.

You may not think of it often, but we are benefi tting from ethanol every day. Learn more about this American success story at GrowthEnergy.org.

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FIND SOURCE INFORMATION AT GROWTHENERGY.ORG/FLIPBOOK.

Contents 2 Ethanol: America’s Energy

A Growing Part of our National Fuel Supply

3 Fueling the United States

4 A Pathway to Fueling Our Future

5 The Future of Ethanol Production

Clean Burning and Environmentally Friendly

6 Ethanol Reduces Greenhouse Gas Emissions

7 Ethanol Production is Energy Effi cient

8 Ethanol is Better for the Air We Breathe

An Important, Renewable Resource

9 Ethanol Provides Fuel and Food

10 High-Tech Delivers High-Yields

11 Where Does America’s Corn Go?

12 Farmers Continue to Expand Conservation Efforts

Good for Engines

13 E15: Safe, Effective and Approved

14 Lap After Lap on American Ethanol

15 The Market is Embracing E15

16 Ethanol & Small / Marine Engine Performance

Good for the Pocket Book

17 Keeping Prices at the Pump Low

18 Your Dollar at the Grocery Store

19 The American Farmer Benefi ts

20 Gasoline Prices are Unpredictable

Expanding Global Use

21 Growing Market Overseas

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Clean, high-performance fuel — Made in the U.S.A.

Ethanol: America’s Energy

Ethanol is an advanced biofuel that is blended into 97 percent of gasoline today — it is good for the environment, for consumers, and for America’s energy security.

• Every day, ethanol is working to slash greenhouse gas emissions from vehicles by as much as 57 percent — and this percentage continues to increase with ongoing innovations in advanced biofuels. It also replaces toxic gasoline additives that have been linked to cancer and smog, making breathing easier for all of us.

• In addition to providing consumers with more affordable choices at the pump, ethanol keeps our engines running smoothly and effi ciently. In fact, the Environmental Protection Agency has approved higher blends of ethanol — like E15 — for use in more than 86 percent of cars on the road today. NASCAR mechanics have trusted the high-octane biofuel for nearly 10 million miles and American drivers can now reap the same benefi ts.

• Ethanol strengthens our energy security, reducing our reliance on oil from hostile nations in the Middle East. Already, ethanol displaces 59 million gallons of imported oil per day. In fact, since the Renewable Fuel Standard (RFS) was enacted in 2005, we have cut our dependence on foreign oil by more than half.

Americans deserve more choices at the pump — choices that are greener, cleaner, more cost-effi cient and better for our engines. Imagine all the good we can do for our economy, our environment and our future by increasing the blend of ethanol in our fuel supply.

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AmericanEthanol


A GROWING PART OF OUR NATIONAL FUEL SUPPLY

0

200

400

600

800

1,000

MEXICO

VENEZUELA

SAUDI ARABIA

CANADA

SOURCE: EIA, ADJUSTED TO REFLECT GASOLINE YIELDS.

U.S. Ethanol: A Major SupplierIf the U.S. ethanol industry were a foreign supplier, only Canada would supply the U.S. with more transportation fuel than the U.S. ethanol industry.

THOUSAND BARRELS / DAY

Fueling the United StatesU.S. Ethanol and Crude Oil Imports



A Pathway to Fueling Our FutureWhy America Needs the Renewable Fuel Standard

SOURCE: EPA

CELLULOSIC BIOFUELS

FIRST GENERATION FUELS

35

30

25

20

15

10

5

2006 2008 2010 2012 2014 2016 2018 2020 2022

ADVANCED BIOFUELS

BILLION GALLONS U.S. Ethanol a Major SupplierThe 2007 RFS sets a goal of producing 36 billion gallons of renewable, domestic fuel by 2022. The targets can be met with a variety of biofuels — grain ethanol and cellulosic ethanol being major contributors.



The Future of Ethanol ProductionA Renewable Biofuel, Ethanol Has Considerable Growth Potential

SOURCE: EPA, EIA, NREL

120

100

80

60

40

20

0

TOTAL MOTOR GAS CONSUMED IN AMERICA: 140 BGPY

FULLY ACHIEVED RFS: 36 BGPY

TOTAL CONVENTIONAL ETHANOL CAP: 15 BGPY

TODAY

10 YEARS

20 YEARS

(FORECAST)

Ethanol’s Potential: Replace More Than 90 Percent of our Nation’s Gasoline UsageWith the tremendous increases in corn yields and more than one billion tons of cellulosic biomass in the United States, the possibilities for ethanol are staggering. If our nation has the resolve, we could almost eliminate our need for fossil fuels used for automotive transportation and replace it with a homegrown, environmentally friendly and renewable fuel.

BILLION GALLONS / YEAR (BGPY)


CLEAN BURNING AND ENVIRONMENTALLY FRIENDLY

SOURCE: ARGONNE NATIONAL LABORATORY

Ethanol Reduces Greenhouse Gas EmissionsInnovation Continues to Improve Environmental Benefi ts

PERCENT REDUCTION(RELATIVE TO GASOLINE)

20

40

60

80

100

1995 TODAY 2030COAL FIRED

ETHANOL PLANTSCURRENT

ETHANOL PLANTSFUTURE

ETHANOL PLANTS

-7%

-100%

29-57% REDUCTION(not accounting for land use change)

19-48% REDUCTION(accounting for land use change)

DRAMATIC IMPROVEMENTSEthanol’s greenhouse gas emissions will continue to decline as farming practices continue to advance, additional alternative energy sources are used in ethanol production and pipeline infrastructure is built for distribution.

PERCENT



SOURCES: USDA; MUELLER AND KWIK, 2012 CORN ETHANOL: EMERGING PLANT ENERGY AND EMERGING TECHNOLOGIES, UNIVERSITY OF ILLINOIS

Today’s Ethanol Uses Less Energy, Water and Corn

Ethanol Production is Energy Efficient

IT TAKES LESS WATER TO PRODUCE A GALLON OF ETHANOL 2.70 gallons of water/gallon of ethanol in 2012 versus 2.72 gallons of water/gallon of ethanol in 2008.

MORE ETHANOL IS BEING PRODUCED from each bushel of corn. 2.82 gallons/bushel in 2012 versus 2.78 gallons/bushel in 2008.

IT TAKES LESS ENERGY TO PRODUCE A GALLON OF ETHANOL 23,862 BTU/gallon in 2012 versus 26,206 BTU/gallon in 2008.



Ethanol is Better for the Air We BreatheSince the Enactment of the RFS, Clean Burning Ethanol is Cleaning our Air

2007 TODAYLos Angeles Los Angeles

Global ethanol production and use is estimated to reduce greenhouse gas emissions by 110 million metric tons every year — the equivalent of taking nearly 20 million vehicles off the road each year.

Ethanol is a clean-burning fuel that has 40-90 percent less carbon than the toxic additives it replaces in gasoline.


AN IMPORTANT, RENEWABLE RESOURCE

Ethanol Production Makes Fuel, Feed and More

Ethanol Provides Fuel and Food

Multiple ProductsEthanol production makes more than fuel — it also creates highly-valued co-products. Ethanol producers continue to find new markets for these co-products.

EthanolThe primary product made is ethanol, a high-oxygen octane-enhancer. Ethanol is blended with gasoline and sold at retail filling stations across the country.

Distiller’s Grains (DDGs)Distiller’s Grains are a healthy, low-cost animal feed. Ethanol production only removes the starch from the corn kernel. The remainder — protein, fiber and oils — are collected and distributed as a nutritious, low-cost animal feed that replaces a higher volume of field corn, thereby saving money for livestock producers.

Corn OilMore than 80 percent of dry mill ethanol plants are able to extract corn oil which may be used as a biodiesel feedstock or a feed ingredient.

Carbon DioxideDuring the process of distilling ethanol, fermentation releases carbon gases. Some ethanol plants capture those carbon gases and sell that to soda and beverage companies for carbonation.

Other ProductsProducts in development include specialty proteins to be used as natural edible coatings or biopolymers that can replace protein based plastics.



SOURCE: ERS/OCE/ USDA

As Technology Evolves, Corn Yields Continue to Rise

High-Tech Delivers High-Yields

0

100

150

1926 1940 1954 1968 1982 1996 2010

PROJECTED

2024

50

0

100

150

50

More Than EnoughDevelopments in farm effi ciencies and innovations like biotechnology and use of hybrid seeds continue to raise agricultural yields on farms. In fact, planted acres have remained relatively fl at while yields have increased.

ACRES PLANTED

BUSHELS PER ACRE

MILLION ACRESBUSHELS /

ACRES



SOURCE: ERS/USDA FEED GRAINS DATABASE

We’ve Got Plenty to Go Around

Where Does America’s Corn Go?

2001/02 2004/05 2007/06 20010/11 20013/14 2015/2016 (F)

0

3

6

9

12

BILLION BUSHELS CORN EQUIVALENT

How Much?Only 25 percent of corn acres are used for renewable fuels.

NET ETHANOL

ETHANOL CO-PRODUCTS Distiller’s grains, Corn gluten feed & meal, corn oil

EXPORTSFOOD SEED & INDUSTRIALFEED & RESIDUAL



SOURCE: USDA

USDA Conservation Acres Continue to Rise

Farmers Continue to Expand Conservation Efforts

0

80

160

240

320

400

2004 2006 2008 2010 2012 2014 2016 (E) 2017 (F)

Environmental Quality Incentives Program

Conservation Reserve Program

Conservation Stewardship Program

All Other Programs

FARM BILL CONSERVATION PROGRAMS CUMULATIVE ACRES ENROLLED (MILLIONS)


GOOD FOR ENGINES

E15 will lower the price at the pump for more than 84 percent of cars on the road today

E15: Safe, Effective and Approved

BENEFITS OF E15 Even with the recent decline in crude oil prices, E15 still costs between 5–10 cents less per gallon than regular gasoline, which allows consumers to save money and get an octane boost.

E15 could also create 136,000 jobs and billions more in economic activity.

E15 FACTS E15 is currently sold more than 20 states. Major retailers that have added or announced that they are adding E15 include Sheetz, Kum & Go, MAPCO, Minnoco, Murphy Oil and Protec.

More testing was performed on E15 than any other fuel ever approved under the Clean Air Act. The U.S. Department of Energy’s Oak Ridge National Laboratory

tested 86 vehicles for more than 6 million miles before EPA approved E15. That testing found no issues with emissions equipment and engine durability.

E15 is approved for all automobiles 2001 and newer, which represent over 84 percent of the vehicles on the road today. Despite critics’ claims that warranties will be invalidated, conservative analysis shows that there will be 150 million vehicles in 2016 where warranties will not be an issue.

Fueling motorcycles and other small engines with E15 is expressly prohibited by law.


GOOD FOR ENGINES

SOURCE: NASCAR

America’s Renewable Fuel is Revolutionizing a Sport

Lap After Lap on American Ethanol

402 LAPS10 MILLION MILES EQUATES TO

AROUND THE EARTH

NASCAR® is approaching 10 million competition miles on Sunoco Green E15™, a biofuel blended with 15 percent American Ethanol made from American-grown corn that reduces emissions.


GOOD FOR ENGINES

The Market is Embracing E15Major Retailers Driving Growth in E15

COMMERCIALLY VIABLEMany nationwide retailers are implementing E15 in their stations’ offering

186 MILLION MILESHave been driven so far by American Drivers

using E15 since introduction

248% INCREASEIn stations adopting E15 from 2014 to 2016


GOOD FOR ENGINES

Ethanol & Small / Marine Engine PerformanceMore than 95 percent of U.S. gasoline contains up to 10 percent ethanol to boost octane or meet air quality requirements

• Almost all small, marine and off-road engines can handle E10 and are expressly approved for use in their owner’s manuals.

• E15 is not approved for small, marine and off-road engines. EPA has formalized a misfueling mitigation rule specifi cally meant to prevent consumer misfueling.

• E10 is available at every E15 station in the country. In fact, many locations around heavy boating locations have non-oxygenated gasoline as a choice for small, marine and off-road operators.

• Recreational marine vessels account for less than one percent of U.S. gasoline consumption.

• While ethanol is clean and renewable, oil spills can harm marine ecosystems for decades. Ethanol is biodegradable.


GOOD FOR THE POCKET BOOK

SOURCE: OIL PRICE INFORMATION SERVICE

Ethanol is the Most Cost Effective Octane Additive for Gasoline

Keeping Prices at the Pump Low

2013 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q2Q3 Q42014 2015 2016

0.0

0.2

0.4

0.6

0.8

1.0

Ethanol, Denatured, 110 U.S. Octane (¢/gal)

Unleaded, Regular, 87 U.S. Octane, E0 Gasoline (¢/gal)

U.S. CENTS PER UNIT OF OCTANE



SOURCES: BASED ON 2015 PRICES WITH CORN AT $3.60 PER BUSHEL AND DIESEL AT $2.71 PER GALLON. USDA, EIA AND NEBRASKA CORN BOARD.

Marketers, Not Farmers, Drive Food Prices

Your Dollar at the Grocery Store

American farmers receive about $0.17 of the consumer food dollar, with the balance going to food processing, transportation and food company profi ts.

Americans still spend only about 10 percent of their disposable income on food, the lowest rate in the developed world.

Average distance food travels to store shelf:

1,500 miles

The value of corn in an 18 oz box of corn fl akes

$0.05

Cost to get a truckload of corn fl akes to the store

$677

FARM SHARE

3¢ CORN VALUE

MARKETING SHARE

17.2¢ 82.8¢

Average distance food



SOURCE: USDA

The American Farmer Benefi tsNet Farm Income is Closely Tied to Increased Ethanol Production

0

30

60

90

120

0

3

6

9

12

2000 2002 2004 2006 2008 2010 20142012 2016(FORECAST)

NET FARM INCOME $ BILLIONSETHANOL PRODUCTION

BILLION GALLONS



SOURCE: BUREAU OF LABOR STATISTICS

U.S. Consumer Gasoline Prices Have Generally Risen Faster Than Food Prices

Gasoline Prices Unpredictable

0

50

100

150

200

250

2005 2007 2009 2011 2013 2015

All Items Food Gasoline

U.S. food prices have closely matched the overall rate of inflation while gasoline prices have historically risen much faster than the Consumer Price Index.


EXPANDING GLOBAL USE

SOURCE USDA/ERS, USDA/FAS

U.S. Exports of Ethanol and Distiller’s Grains Are Increasing

Growing Market Overseas

0

5

10

15

20

25

30

35

0

3,500

7,000

10,500

14,000

2002 2008 2015 2002 2008 2015

U.S. NON-BEVERAGE ETHANOL PRODUCTION

U.S. DISTILLER’S GRAIN PRODUCTION

U.S. NON-BEVERAGE ETHANOL EXPORTS

U.S. DISTILLER’S GRAIN EXPORTS

MMT MILLION GALLONS

777 North Capitol Street NE, Suite 805

Washington, DC 20002

PHONE: 202.545.4000

FAX: 202.545.4001

UPDATED JUNE 2016

GROW 16061 Flipbook 2016-06-02 R1 - Growth Energy · 2019-12-20 · June 2016 GrowthEnergy.org 1...

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