|
Made from corn or other grains, ethanol (ethyl alcohol) has been used since the early part of the 20th century as a motor fuel, and more recently as a clean burning fuel oxygenate. Its origins as a transportation fuel date back to 1908, before the widespread use of petroleum, when Henry Ford built his first Model-T car which was designed to run completely on ethanol. Ethanol in its basic form is pure alcohol at approximately 200 proof. For use in fuel, a denaturant is added (typically 5% gasoline) to make it unfit for consumption. This fuel ethanol is then blended with conventional gasoline up to 15% (E-15) which can be used by any gasoline powered vehicle without the need for any engine modification.
Ethanol cuts the emissions of unburned hydrocarbons and carbon monoxide. There is a net reduction in harmful ozone forming emissions and greenhouse gases with the use of ethanol blended gasoline since growing corn removes carbon dioxide from the air. Ethanol use is approved by all vehicle manufacturers and is used across Canada and the United States.
Producing ethanol increases the supply of high protein animal feed ingredients through the distillation process; this creates new agricultural business opportunities centered on the plant, and helps offset imports of soybean meal and other animal feeds.
Back to Top
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.
Effective January 1, 2007, the Ontario Government has mandated a minimum average of 5 percent ethanol in gasoline as a way to support agriculture, improve air quality, and reduce dependence on petroleum.
As illustrated in the graph below, the demand for fuel ethanol in Canada has grown substantially in the last decade, and currently stands at approximately 300 million litres per annum.
Historically, production capacity has closely tracked demand, however, with the recently introduced Ontario government legislation, demand is forecast to outstrip supply. Based on the current 14 billion litres annual gasoline consumption, ethanol demand will be 700 million litres in 2007 and could reach 1.4 billion litres by 2010 based on a 10% ethanol blend.
In August, 2005, President George W. Bush signed into the law the Renewable Fuels Standard which mandates the use of 4.0 billion gallons of renewable fuels by oil refiners in 2006, increasing to 7.5 billion gallons in 2012. The vast majority of this renewable fuel will be ethanol.
Back to Top
The US ethanol industry is the fastest growing energy industry in the world. Ethanol is blended in 30% of it's nation's gasoline. An annual record of 3.4 billion gallons of ethanol was produced in 2004 from the 81 plants in operation across the United States. Production will be increased by another 800 millions gallons from the 16 additional plants currently under construction.
According to the U.S. Department of Energy, ethanol is typically blended at 5.7% to 10% by volume in the United States, but is also blended at up to 85% by volume for vehicles designed to operate on 85% ethanol. Compared to gasoline, ethanol is generally considered to be less expensive and cleaner burning and contains higher octane. We anticipate that the increasing demand for transportation fuels coupled with limited opportunities for gasoline refinery expansions and the growing importance of reducing CO2 emissions through the use of renewable fuels will generate additional growth in the ethanol market.
We invite you to learn about ethanol and its environmental and economic benefits through the following web sites:
(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
National Ethanol Vehicle Coalition
Ethanol Overview on Wikipedia
American Coalition for Ethanol
Back to Top |
