Ethanol is the only clean-burning liquid fuel available to replace oil used in our cars and light trucks. In 2011, we produced nearly 14 billion gallons of ethanol, another annual production record. This production accounts for 10 percent of the nation's gasoline supply. In doing so, we eliminated the need for more than 485 million barrels of imported oil. Ethanol is domestic, supplying nearly 401,600 jobs in 2011 from agriculture to manufacturing to the service sector. It is also made from renewable resources.
Production Growth
The growth of ethanol production and the use in the U.S. directly translates to reductions in the amount of oil the nation needs to import. In addition to domestic demands, the U.S. was also on pace for record exports of ethanol as well. The ethanol industry exported a record one billion gallons of ethanol in 2011. These exports represent an increase of some 600 million gallons over 2010, the previous record year.
Top destinations for U.S. ethanol were Brazil, Europe, and Canada with American product also finding its way to the Middle East and Asia.
In addition to ethanol, the U.S. also exported nearly 8 million metric tons of distillers grains to growing markets in North America, Asia and Europe.
Technologies are rapidly becoming available that allow ethanol to replace even larger volumes of oil in domestic gasoline. Ethanol blends such as E20, E30, and E50 (mid-level blends or MLEBs) are gaining popularity as consumers seek affordable alternatives to imported oil.
Environmental Impacts
The use of an increasing amount of ethanol in American gasoline supplies is making the air we all breathe much cleaner. There is no fuel available at scale today that can match ethanol's ability to improve overall environmental quality compared to gasoline. From its biodegradable nature to reductions in greenhouse gas emissions to tailpipe pollution, ethanol provides a tool to address environmental concerns without requiring an entirely new way for goods and people to get from one place to another. Naturally, ethanol also requires far less fossil fuel inputs than gasoline refining.
An interesting shift in ethanol trade is also occurring. Deemed “The Ethanol Shuffle,” carbon footprint calculations in both the federal Renewable Fuel Standard and the California Low Carbon Fuel Standard (LCFS) encourage the import of Brazilian ethanol even as the Brazilian industry falls short in meeting its own domestic demand. As a result, America has been importing ethanol from Brazil while simultaneously exporting ethanol to Brazil to backfill its market. All the while, a doubling of carbon emissions from transporting these ethanol shipments will occur, partly undermining the carbon reduction goals of both policies.
Ethanol's Future
The future of American ethanol is diverse. Corn will continue to be the basis upon which the industry grows. Ethanol use helps provide American consumers with a real energy choice.
Existing ethanol production in the U.S. has been and will continue to be the foundation of America’s transition away from a fossil fuel economy. Many existing ethanol biorefineries are exploring technology upgrades that will allow for the production of ethanol from a broader range of feedstocks. These so-called bolt-on technologies will allow ethanol producers to increase ethanol production by converting both grain starch and cellulosic material into fuel at the same facility.
