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Nebraska officials: Ethanol should defend itself

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By The Associated Press

Saturday, Jul 19, 2008 - 03:20:32 pm CDT

KEARNEY — These days corn-based ethanol is being blamed for worldwide food shortages, inflation and environmental problems.

But Nebraska Ethanol Board officials say much of the criticisms of ethanol are based on flawed information, and the industry needs to do more to defend itself.

Texas Gov. Rick Perry has petitioned the Environmental Protection Agency to modify the federal requirement to blend 9 million gallons of ethanol into the U.S. fuel supply this year. He has said the mandate plays a significant role in skyrocketing grain and food prices. An EPA ruling on the petition is expected next week.

Nebraska Ethanol Board officials meeting Friday in Kearney said their industry had been slow to defend itself. Now ethanol faces the monumental task of re-educating a public that hears mostly negative information about corn, food and fuel from ethanol opponents, competitors and national media.

“The ethanol industry, frankly, didn’t do as good a job being proactive,’’ said Ethanol Board Administrator Todd Sneller.

Director David Hallberg of Omaha said one of the common criticisms of ethanol comes from a University of California-Berkley study that said ethanol was worse for the environment than gasoline. But that study was done with 2001 data.

He said 75 percent of U.S. ethanol capacity now comes from more efficient plants completed since 2005.

Board Chairman Jim Jenkins of Callaway said ethanol isn’t a panacea or silver bullet for U.S. energy woes, but neither is oil, coal, wind or other energy sources that have received little negative attention from the media in the same way ethanol has been criticized.

Sneller said the 2008 elections will play a big role in the future of ethanol and other renewable fuels.

The Renewable Fuels Standard is being challenged on several fronts, plus tax incentives and related tariffs are set to expire at the end of 2010.

“I expect a lot of the misinformation campaign will continue with a vengeance,’’ he said.

Board members said more research is needed, and the ethanol industry should focus on developing techniques to separate corn kernels into their parts — bran, germ, etc. That would allow more products to come out of ethanol plants.

Nebraska ranks second nationally in ethanol production. The state’s Ethanol Board says Nebraska’s 21 ethanol plants annually produce more than 1.3 billion gallons of ethanol, using nearly a half billion bushels of corn.


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Mr. Goodsense wrote on July 19, 2008 6:07 pm:
" Jim Jenkens said "oil and coal" don't receive the "same negative attention from the media"? Jim, do you get TV, Internet or newspaper out there in the Sandhills? If the news media would quit catering to the environmentalists/socialists, we wouldn't be in the energy bind that we're in today. To my ethanol friends: see what happens when you jump in bed with the greenies? "

 Just what wrote on July 19, 2008 6:16 pm:
" would you expect the ethanol board to say? They stand to lose big money if the states stop making it a law to use ethanol. Missouri is now thinking of pulling the mandate to use ethanol. The whole thing is a scam for the investors and growers. I haven't yet bought the junk unless I'm about to be stranded and have to. Who are these people trying to fool? Is it because it is wrirten by a large company that people believe that ethanol is the savior to gas pricing? Wrong, it's a joke to make a very few people , very rich. The farmers and others will be left holding the bag when this all blows over, and it will. "

 Bob wrote on July 19, 2008 6:17 pm:
" "monumental task of re-educating a public"

Especially when the facts are obvious to everyone not in on the scam....

Re-duped is the more appropriate word here. "

 Huh wrote on July 19, 2008 7:50 pm:
" What scam are you talking about? The one about congress quietly going to try to raise Federal gas tax a dime. Ethanol is one part of a solution to get off of foreign oil. Yes, there are other options, some are better, but until they're further developed, ethanol is our alternative fuel. Please curb your anger against the corn farmer. And yes, I agree with you on one statement monumental task of re-educating a public. Apparently some people are blind and deaf. "

 Buy American wrote on July 19, 2008 9:36 pm:
" How come everyone wants us to buy American except for our fuel? No, ethanol may not be the best way to end our dependence on oil but it does help. I'd rather keep some of my money here in the heartland helping Americans than to send it to the Middle East and fund some sheiks palace. "

 QueWait wrote on July 19, 2008 11:57 pm:
" Economic analysis shows ethanol from food does not have a good business model, subsidies are required. Those subsidies don’t appear without taxes. And there may even be a double tax if it is funded from income tax and then taxed at the pump. Additionally, Brazilian ethanol has a tariff imposed on it making USA citizens pay more...another hidden tax that results in higher gas prices and less money in the pockets of consumers. Production of ethanol requires lots of water and an energy source, like natural gas, to separate water from the alcohol. With about 25 per cent of corn harvested going into ethanol, that drives up prices for cattlemen, dairy men and poultry producers who pass through costs inflated by competition from ethanol. The governor and Mike Johanns might have intended well, but the unintended consequences cripple middle class spending power. Ethanol use would not stop Middle East oil from playing a significant role in global oil markets, there might just be a shift to other nations as a source. "

 Kanter wrote on July 20, 2008 1:15 am:
" Over the past 18 months, studies have shown that the current generation of biofuels reliant on crops like canola, corn and soybeans helps drive up food prices by using agricultural land, aggravates deforestation and may be worse for the climate than conventional oil once the cost of production and transport are taken into account. The majority of biofuels produced in the world today are extracted from corn in the United States, sugar in Brazil, and both grain and oil-seed crops in Europe.

Those findings now are pushing Europe into an about-face on biofuels that has gained momentum in recent days.

http://www.iht.com/articles/2008/07/07/business/fuel.php "

 To Buy AMerican wrote on July 20, 2008 5:54 am:
" Why does everybody want us to buy American, except when it comes to our own oil. We have more oil in this country than Saudi Arabia, yet when we as a country NEED to open up the entire country to oil producers, yes, they can even come into my back yard, what do the democrats do but say no. Yes we need to develop alternative fuels, I don't augue that, but corn based ethanol is not the product to use, and until we come up with the product that will be a viable alternative, we need to still rely on oil. "

 Electric car wrote on July 20, 2008 8:53 am:
" So where has the electric car gone? Solar? Wind? We could produce an awful lot of electricity by harnessing solar and wind energy here in NE. Ethanol uses the same corn that would otherwise be our food. Look at the label on any food in your pantry; a majority will contain some corn product. Would you rather not be able to afford gas for the car or food for your stomach. Just because we know how to produce it doesn't mean it is our best option, lets continue to look forward as we work on energy issues rather than get stuck using energy solutions that will devastate the world population. "

 the same wrote on July 20, 2008 9:48 am:
" people who say to buy ethanol are probably the ones who continue to buy the american made gas monsters. I own one foreign made car, a lexus, and plan to buy another toyota for work. I will not buy another american made car until they build a car that is comparible to the foreign ones. Quality in american cars that guzzle gas is terrible yet, even though they keep claiming that the new ford is as good as honda and toyota. It always makes me laugh that the american manufacturers have to stoop to compare theirs to the foreign made cars.
When the labor union run factorys in america can make a car with the quality, have the service departments to take car of a problem, and can make they less costly to operate, I will continue to love my toyota products. Ethanol is not a fix to the fuel problem, its a bandaid and an expensive one that drives the price of all food products over the line. "

 Eyes Wide Open wrote on July 20, 2008 10:01 am:
" Hey, "Buy American" -- exactly which country is the 3rd largest oil producing nation in the world? The good ol' USA. Yes, that fossil fuel from the ground is what fuels the tractors during planting season, the combines during harvest, and the irrigation motors during the hot summers. The natural gas that comes out with oil is what makes your fertilizer for the corn. And, by the way, with oil, ethanol is worthless. It will always be a blending component. So, if your state & community depends on ethanol, quit blaming "BIG OIL" for all the worlds woes. Instead, point your fingers of blame at crazies like Nancy Pelosi who have never produced anything in their lives except hyperbole! "

 DR wrote on July 20, 2008 10:31 am:
" There is a difference between "Ethanol" and "Corn Ethanol." One is very efficient. One actually produces a net gain of energy. The only problem is that people here in the midwest don't like to know which one is better. "

 Husker wrote on July 20, 2008 12:29 pm:
" The only -- I repeat, the ONLY -- misinformation campaign being conducted here is by the corn and ethanol lobbies and the clueless politicians who support them. Tell me honestly: Would you, should you, ever take anything you hear from the Corn Board with more than a grain of salt? "

 Janet wrote on July 20, 2008 1:22 pm:
" Corruption in government may result in agencies like the one promoting an inefficient and morally unjustifiable business. When lobbyists influence members of the legislature, more than the people do, democracy is not working. When the governor and congressmen promote flawed economics to harvest short term profits that can’t be sustained, there may be a lack of responsible governance. We were deceived into the war in Iraq with sights taken off of the more imposing threat of terrorism. Similarly, the energy price crisis has created fear and makes people vulnerable to politicians who would not otherwise get support and votes. This is a time for Nebraskans to free themselves from deceptive tactics. That is the first step to achieving a break from a reliance on oil...whether the wells are in the USA or Iraq..(The Nebraska Ethanol Board is a state agency, created in 1971 by the Nebraska Legislature—the first state agency in the United States devoted solely to the development of the ethanol industry. The Nebraska Ethanol Board is made up of seven members appointed by the Governor) "

 Expanded Thinking wrote on July 20, 2008 2:46 pm:
" The public's perception of Corn Ethanol can be directly related to the frustration of gas pump prices. The reports on Ethanol efficiency, the comparison to it and oil based fuel, and the environmental impact studies have been in place well before the fuel crisis of late. It is now that people of today need to blame the efforts of people of the past to create a alternative fuel source. This is a common issue of supply versus demand. We need more fuel, the demand is up, the supply is low. Prices for a commodity that is as useful as corn are going up. So, for the years that have passed where corn was "just a grain" and the cost was 1.80 a bushel - realize what the producers on the other end were facing. The other spectrum of supply versus demand. The common public, media, and environmentalists did not seem to make such a fuss about it then. Now reports come out how growing corn pollutes "X" amount per year, or how much energy it takes to grow corn and produce ethanol. When will we as a country realize to take responsibility for what problems we create.

From - Coloradan "non corn grower" "

 Reader wrote on July 20, 2008 5:00 pm:
" Ethanol is ethanol. The two carbon, five hydrogen, and a hydroxyl (oxygen-hydrogen) group molecule is produced through fermentation; that is yeast (and other enzymes) breaking sugar (or starch) into smaller molecules. With sugar cane, beets, and other plants the high content of sugar present makes it more efficient to convert to alcohol than starchy grains....like corn. Then it takes lots BTUs to separate (distill) the alcohol from the water. Nothing complicated, fermentation in making of breads, wine,r beer, vodka are process where ethanol is produced. This is stuff learned usually in a high biology or chemistry class "

 Rusty Rail wrote on July 20, 2008 9:57 pm:
" Until the auto makers produce an engine that can properly burn ethanol with the power and economy of gasoline, ethanol is just a scam. See the UNL study on what had to be done to a Chevy engine just to equal a gas engine. "

 reason and reality wrote on July 20, 2008 9:59 pm:
" The problem with energy, food, inflation, and the like is not the fault of the corn board, corn growers, opec, bin laden, or burt reynolds. The root of our economy woes is the Chicago Board of Trade. There is no fuel shortage, production is at an all time high, and the opec nations are increasing supply, confused and concerned about how high prices have risen. When is the last time you have eaten field corn? corn is only %35 of the cattle feeding process, and truely doesn't rule the food prices, from a logical standpoint. Now, if you are in the Chicago Board of Trade, and you see corn prices make a rise, you instantly lift all other prices, to follow, lest there be a gap. Showing the problem: commodity prices don't follow actual supply and demand realities. Someday, when history looks back on this fact, it will be one of the great mistakes of our time. "

 C wrote on July 21, 2008 12:05 pm:
" "reason..." has hit it on the head. The trading of commodities was intended to allow companies to hedge their operations against significant increases on raw materials, this way they could budget their operations for the next few years. What has happened today is that investors are trying to make money on the commodities markets with no intention of using the raw materials. It has turned into another investment game, jsut like the stock market. But commodity investments are not like equity investments and nor should they be. I can think of a president and first lady who made a fortune on Cattle Future investing. (Clintons) They do not own slaughter houses or grocery stores. They just bought the futures as an investment. If the government could limit the trading of commodities (corn, oil, grain) only to companies and farmers who have an intention of using the raw materials the price of the commodities would drop drastically. "

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