Robert Pore's Ag Blog

In his annual State of the Union address, President Bush outlined plans to increase the supply of renewable and alternative fuels to reduce our growing dependence on crude oil imports. His proposal would create a mandatory fuels standard that would require U.S. motorists to use 35 billion gallons of renewable and alternative fuels annually by 2017. This figure represents a five-fold increase over requirements contained in the Renewable Fuel Standard passed by Congress in 2005 and would replace 15% of projected annual gasoline use in the U.S.

“Much like the 2005 RFS did in it’s time, the President’s proposal can serve as a catalyst for exponential growth in the U.S. ethanol industry,” according to Jim Jenkins of Callaway, the newly elected Chairman of the state’s Ethanol Board. “Nebraska, and other ethanol producing states, will directly benefit from this new demand for domestically produced energy. Farm income will grow along with other segments of the state’s broader economy. Engineering, construction, trucking, retail, chemicals, and education will be among the first sectors to benefit. Folks in town and those in the country will realize the full benefits of this basic industry.” Jenkins said.

“Given current market structures, traditional corn based ethanol can provide around fifteen billion gallons to help meet the President’s annual goal of thirty-five billion gallons,” according to Todd Sneller, Ethanol Board administrator. “This means feedstocks other than corn will have to be converted to ethanol. Technologies must be refined and developed to ensure viable production costs for ethanol and other renewable fuels that are derived from non-grain sources.

“Most parts of the country have local resources that can produce ethanol or renewables like biodiesel or butanol. Sugar crops in southern states, agricultural residues in the Midwest, forestry products in the Northwest, potatoes in Idaho, municipal solid waste in the nation’s cities, all are strong candidates to supplement traditional grain based ethanol supplies.” Sneller said.

Nebraska’s ethanol production capacity grew at a faster rate than any other state in 2006. That trend is expected to continue in 2007 and Nebraska will soon overtake Illinois as the second largest producing state. With many of Nebraska’s operating plants expanding and ten new plants scheduled to begin operations in the coming months, the state’s production capacity will approach 1.5 billion gallons annually. This level of production exceeds the use of gasoline and diesel fuel in the state each year and means Nebraska will be a net liquid energy exporter.

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