Robert Pore's Ag Blog

As research is fining new and better ways of producing ethanol, Rep. Tom Osborne, R-Neb., is hosting a forum to up date people on ethanol’s future opportunities.
The forum, “Emerging Technologies in Ethanol,” will be Aug. 8 in Kearney.

Osborne said Nebraska is a leader in ethanol production and well positioned to be a leader in the future of ethanol production using emerging technologies.

He said the forum will address diverse topics, including cellulosic ethanol.

“This technology has the potential to lead the industry into the next generation of ethanol production,” Osborne said.

The forum will be from 1 to 5 p.m. Aug. 8 in the Ponderosa Room of the University of Nebraska at Kearney’s Nebraskan Student Union.

Invited speakers are Bob Walker of Bixby Energy Systems; Mark Gaalswyk of Easy Automation Inc.; Maurice Hlakic of Iogen Inc.; Anna Rath of Ceres Inc.; Al Christopherson of the Agricultural Utilization Research Institute; and U.S. Department of Agriculture and University of Nebraska representatives.

While new technology will make biofuel production even more productive and diverse in its feed sources, political attacks on ethanol as an alternative fuel continue to mount.

In the wake of new reports of record profits by international oil companies, a recent study by the National Taxpayers Union released earlier this month attacks the burgeoning industry as too dependent on government handouts.
The American Coalition for Ethanol (ACE) cautions consumers to not take this information at face value.

“The only thing abundantly clear is that NTU’s ‘study’ is nothing more than a deceptive piece of propaganda with no basis in reality,” said Brian Jennings, ACE executive vice president.

He said with modest support from the federal government, ethanol offers an excellent return on investment, with a host of benefits to our nation’s economy, environment, and energy security.

“These facts were somehow left out of the NTU report,” Jennings said.
He said the study especially attacks the Blender’s Tax Credit, the federal tax incentive on ethanol.

Jennings said NTU incorrectly states that this tax credit goes to ethanol producers, when in reality it is an incentive the petroleum industry receives for blending ethanol into its gasoline.

“The Blender’s Tax Credit is one of the most cost-effective and consumer-friendly policies ever enacted by Congress, because it is typically passed on to motorists in the form of lower prices at the pump,” he said. “Removing this incentive, which is what NTU appears to be advocating, doesn’t seem like good tax policy for working families who are already experiencing too much pain at the pump due to record-high oil prices.”

Jennings said the NTU study doesn’t suggest any alternatives to ethanol or look at the generous incentives the petroleum industry has received for decades.
“Ethanol is a clear, immediate way for the U.S. to begin weaning itself off of expensive foreign energy,” he said. “If we can begin to move toward energy independence by using ethanol — a homegrown alternative that puts our citizens to work, adds value to American ag products, and cleans our environment — this is something NTU should advocate, not attack.”

Some facts about ethanol:
‰ Today the United States is home to more than 100 ethanol biorefineries, of which about half are owned by farmers and other local investors. The U.S. ethanol industry is very diverse, not owned or controlled by one single company.
‰ There are more than 30 ethanol plants under construction, putting the industry at a growth rate of more than two facilities a month. This is in contrast to the oil industry, which hasn’t built a new gasoline refinery in 30 years.
‰ U.S. farmers benefit from ethanol production through increased demand, which leads to a stronger price for their crops. Better market-based prices mean less need for government price supports.
‰ Ethanol is now blended into more than 40 percent of America’s gasoline, displacing expensive oil and gasoline with a homegrown, clean-burning alternative.

Source: American Coalition for Ethanol