Northern Ethanol Inc.
  Canadian Senate passes Bill C-33
Biofuels bill requires 5% renewable content by 2010
   
  Obama Gets Ethanol Power    
  President Bush Signs Energy Bill    
  Biofuels Get Big Boost in 2007 Budget    
  Cut gas use 20%: Bush    
  Sector Snap: Ethanol Producers Jump  
Canadian Renewable Fuels Association launches 2007 Ad campaign.  
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Bio Who?
 
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On the Hill
 
EU Official Pushes Renewable Energy Use    
  Ontario to mandate ethanol blends in 2007    
  Support growing for 10 percent Canadian RFS    
  Obama, Lugar Introduce The American Fuels Act to Reduce U.S. Dependence on Foreign Oil    
  Senators Introduce BioFuels Security Act    
  Ethanol Bandwagon Picks Up Speed    
    Investors  
 
For Northern's filings with the SEC, please click here.
   
  Northern Ethanol is now trading on the OTCBB. Click here for a stock quote.    
 
FAQ  

Frequently Asked Questions

What is ethanol?
Ethanol is a clean-burning, high-octane alcohol made from renewable resources like corn, wheat, barley and sugarcane. The majority of the ethanol being produced in the North America today is made from corn. Tropical countries like Brazil make ethanol from sugarcane.

What is E10?
E10 is a fuel composed of 10 percent ethanol and 90 percent unleaded gasoline. Many of the cars of our roads today can operate on E10. Many automakers recommend its use because of its high performance, clean-burning characteristics.

What is E85?
E-85 is a term for motor fuel blends of 85 percent ethanol and 15 percent gasoline. E85 is an alternative fuel as defined by the U.S. Department of Energy. Government tests have shown that E85 vehicles reduce harmful hydrocarbon and benzene emissions when compared to vehicles running on gasoline. E85 can also reduce carbon dioxide (C02), a harmful greenhouse gas and major contributor to global warming, and help reduce North America’s dependence on foreign oil.

What are the benefits to E85?
• E-85 burns cleaner than gasoline and has a higher-octane level.
• It can result in more horsepower for your car.
• With the recent rise in gasoline prices, it is also price competitive.

Can I use ethanol in my car?
Most recently built cars on the road today in North America can operate on gasoline blended with up to 10% Ethanol. E-85 compatible engines must be designed and built to accept this fuel.

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How is ethanol made?
The majority of the ethanol in the Canada is made from corn or wheat. Ethanol can also be produced from, barley, sugar beets, potatoes and sugarcane. Ethanol can be made by using a dry mill process or a wet mill process. Grains are processed with enzymes and made into a mash. The mash is then distilled to produce a high quality alcohol. (200 Proof)

Steps in the dry mill process are:
Milling. The feedstock such as corn or wheat passes through a hammer style machine which then grinds the feed into a fine powder. This powder is referred to as “meal”.

  1. Liquefaction. The “meal” is then mixed with water and alpha-amylase, then passed through cookers where the starch is liquefied creating a “mash” which is then cooled.
  2. Saccharification. The “mash” from the cookers is cooled and other enzymes are added to convert the liquefied starch “mash” to fermentable sugars (dextrose).
  3. Fermentation. Yeast is added to the “mash” to ferment the sugars to ethanol and carbon dioxide.
  4. Distillation. The fermented “mash”, now called beer, contains about 10% alcohol plus all the non-fermentable solids from the corn and yeast. The distillation process begins where the where the alcohol is removed from the solids and the water.
  5. Dehydration. The alcohol from the top of the column passes through a drying system where the remaining water will be removed.
  6. Denaturing. Ethanol that will be used for fuel must be denatured, or made unfit for human consumption, with a small amount of gasoline (2-5%). This is done at the ethanol plant.
  7. Co-Products. There are two main co-products created in the production of ethanol: distillers grain and carbon dioxide. Distillers grain, used wet or dry, is a highly nutritious livestock feed. Carbon dioxide is given off in great quantities during fermentation and many ethanol plants collect, compress, and sell it for use in other industries.

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What are the benefits of using ethanol?
Environmental Benefits
Clean Air
Energy Independence

Imagine being able to help reduce smog and green house gas emissions while helping to create jobs and helping farmers secure their crops!

Fuel ethanol benefits the economy as well as the environment. Production of fuel ethanol in Canada and around the world has produced a new market for agricultural products, improving financial stability and security for farmers, in addition to direct and indirect employment opportunities from farming to transportation and manufacturing.

Ethanol can help to fight air pollution created by personal and transportation vehicles. The increased use of renewable fuels will help to reduce smog and green house gas emissions. Ethanol is clean burning and has higher-octane levels, which help to lower emissions. Ethanol contains 35% oxygen. Including ethanol to fuel and the results are a more complete fuel combustion system that reduces harmful tailpipe emissions. Ethanol also displaces the use of toxic gasoline components such as benzene – a carcinogen.

The Canadian Renewable Fuels Association states that:
The environmental benefits increase as biodiesel and cellulose ethanol grow as a percentage of renewable fuel in Ontario.

The Canadian government estimates that, “If 35 percent of gasoline in Canada contained ten percent ethanol, GHG emissions would be reduced by 1.8 megatonnes per year (1.8 million tonnes), which is the equivalent of removing more than 400,000 vehicles from the road.”

The American Lung Association of Metropolitan Chicago credits ethanol-blended reformulated gasoline with reducing smog-forming emissions by 25% since 1990.

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Energy Independence Facts:
The production and use of ethanol benefits our economy on all levels – locally, provincially and nationally.

The use of ethanol-blended fuel helps reduce the environmental and economic impacts of gasoline consumption on our society. Renewable fuels like ethanol are environmentally friendly and are fundamentally cleaner than gasoline. Ethanol cuts the emissions of unburned hydrocarbons and carbon monoxide.

Ethanol plants expand the local economic base. Over 65 per cent of revenue from an ethanol plant is spent within 150 kilometres radius of the ethanol facility. Jobs to support the initial construction phase usually come from local trade workers. Permanent jobs are needed to support the operation of the plant once the construction phase is complete.

The Canadian Renewable Fuels Association states that:
Canada’s ethanol production is expected to triple, to over 650 million litres by 2010.

Ethanol production facilities create jobs and help generate an increase in household income annually.

Ethanol production and use benefit Canadian agriculture and leads rural economic development. Primarily from corn and other agricultural products, ethanol increases demand for these crops, increases the prices farmers receive for these crops, and brings economic development opportunity to the rural areas where the ethanol is made. Local communities benefit from where the crops are grown and are shipped.

Historically, demand for ethanol has been low however with the recent introduction of Ontario government legislation; demand is forecasted to exceed the current supply of 300 million litres per annum. Based on the current gasoline consumption of 14 billion litres per year, ethanol demand will be 700 million litres in 2007 and could reach 1.4 billion litres by 2010 if blending rates are increased to 10%.

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Facts about ethanol:

  • Ethanol blends are likely to reduce carbon monoxide emissions in vehicles by between 10% - 30%, depending upon the combustion technology. (U.S. EPA)
  • The American Lung Association of Metropolitan Chicago credits ethanol-blended fuel with reducing smog-forming emissions by 25% since 1990.
  • The use of 10% ethanol blends reduces greenhouse gas emissions by 12-19% compared to conventional gasoline. (Argonne National Lab)
  • In 2004, ethanol use in the U.S. reduced CO2-equivalent greenhouse gas emissions by approximately 7 million tons, equal to removing the emissions of more than 1 million cars from the road. (Argonne National Lab)
  • Research shows a 35-46% reduction in greenhouse gas emissions and a 50-60% reduction in fossil energy use due to the use of ethanol as a motor fuel. (Argonne National Lab)
  • Ethanol contains 35% oxygen, making it burn more cleanly and completely than gasoline.
  • E85 has the highest oxygen content of any fuel available, making it burn even more cleanly and even more completely than any other fuel.
  • E85 contains 80% fewer gum-forming compounds than gasoline.
  • Ethanol is highly biodegradable, making it safer for the environment.

Where can I find more information on ethanol in Canada?
(Please Note: These sites are provided for information purposes only, and do not constitute an endorsement by Northern ethanol, nor do any of these sites endorse Northern Ethanol.)

Canadian Renewable Fuels Association

Renewable Fuels Association (United States)

U.S. Department of Energy E-85 Information

Ethanol Coalition for Ethanol

National Ethanol Vehicle Coalition

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Tel: 416-366-5511 - Fax: 416-214-1472 - Email:
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