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Ethanol

Providing Energy Security, Rural Jobs and Environmental Benefits

Producing Ethanol from Corn

One bushel of corn (56 pounds) produces 2.8 gallons of ethanol and …

Dry Mill Process Wet Mill Process

17.5 pounds distillers dried grains with solubles,

a high-protein livestock feed

• 13.5 pounds gluten feed• 2.6 pounds gluten meal• 1.5 pounds corn oil

Corn Farmers Meet All Needs• Corn farmers are

confident we can meet all growing needs for food, feed & fuel

• In 2011, we harvested a projected 12.4 billion bushels, for a total supply of 13.6 billion bushels.

Ethanol For Fuel Security

• Truman National Security Project’s “Operation Free” rates fuels across five factors:– Instability of Producer Country– Opposition to American Values– Climate Disruption– Possibility of Threat to Supply Chain– Cost Spike Volatility

Ethanol for Fuel Security

• The scorecard gives ethanol great marks

• First or second place across the board

1. Instability of Producer Country

Electric-ity

Ethanol Nat. Gas Oil

0.12 0.10.45

3.37“States with large oil supplies and reserves are more likely to experience high levels of corruption, have little or no democratic accountability, and tend to lack fiscal transparency.”

www.operationfree.net

2. Opposes American Values

Electric-ity

Ethanol Nat. Gas Oil

0.02 0.04 0.06

0.96“Buying oil from autocracies often means using one hand to fund regimes that undermine us, and then using the other to fund our military and diplomats to fight them.”

www.operationfree.net

3. Climate Disruption

Electric-ity

Ethanol Nat. Gas Oil

8.05

3.93.56

6.74

“In terms of climate disruption, electricity generation is the most harmful. Electricity accounts for 30% of U.S. greenhouse gas emissions, primarily from the burning of conventional coal.”

www.operationfree.net

4. Supply Chain Threat

Electric-ity

Ethanol Nat. Gas Oil

0.66

0.12

0.58

3.72 “The OPEC cartel creates a particularly significant security threat because of its ability to withhold oil from the global market, regardless of where we source our oil. While 50% of the U.S. oil supply comes from OPEC nations the cartel possesses even greater power, due to its control over global supplies and reserves.”

www.operationfree.net

5. Cost Spike Volatility

Electric-ity

Ethanol Nat. Gas Oil

1.2

8.99.5

13.4“OPEC controls approximately 40% of daily global oil supplies. OPEC nations have previously acted in concert to keep supply low relative to demand. In 1999, OPEC cut production supplies, which led to a spike in prices from which they subsequently profited.”

www.operationfree.net

Ethanol for Fuel Security• In 2010, we made and

used enough ethanol to displace the need for 445 million barrels of foreign oil.

• This is the equivalent of 13 percent of total U.S. crude oil imports.

Ethanol’s Economic Impact

• Each year, the Renewable Fuels Association provides a thorough analysis of the impact of the ethanol industry on the U.S. economy

Source: RFA

Ethanol’s 2010 Economic Impact

• 200 plants in 26 states with a capacity of 13.8 billion gallons

• An estimated 743 million gallons of new capacity were brought online during 2010 and at year’s end 840 million gallons of new capacity were under construction

• 2010 ethanol production was 13 billion gallons

Source: RFA

Industry Expenditures in 2010

• $1.4 billion in capital expenditurefor new construction

• $23.9 billion for ongoing production expenses

• $1.5 billion for research and development

Source: RFA

Benefits for 2010JOBS INCOME TAXES

The ethanol industry

supported more than

400,000 jobs in all sectors

of the economy

The economic activities of the ethanol industry put $36 billion

into the pockets of Americans

$8.6 billion in federal taxes

and $4.8 billion in state

and local revenue

Source: RFA

Environmental Benefits• Using ethanol in place of

gasoline helps reduce CO2 emissions

• In 2010, ethanol use cut greenhouse gas emissions by 21.9 million tons

• This is like removing 3.5 million vehicles from the road

Improving Ethanol Efficiency

28%less

thermal energy

used per gallon

32.1%less

electricity used per

gallon

5.3%Higher ethanol yield per bushel

How Production Has Improved Between 2001 and 2008

Source: “Detailed Report: 2008 National Dry Mill Corn Ethanol Survey,” Dr. Steffen Mueller, May 2010

Improving Ethanol EfficiencyEnergy Use, Energy Balance

Source: “2008 Energy Balance for the Corn Ethanol Industry,” USDA, June 2010

In Out

1

2.3For every unit of

energy going into ethanol, 2.3 units of energy

are now produced

Ethanol’s Benefits• Ethanol production reduces dependence on

foreign oil.

• It promotes energy security and independence.

• It provides a good and growing market for U.S. grown corn.

• It is a sustainable and renewable fuel.

• It helps the rural economy.

Thank You