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 US farmers support ethanol, but reject carbon caps 

US farmers support ethanol, but reject carbon caps

16 Jan, 2009 11:42 AM
Delegates at the giant American Farm Bureau Federation annual meeting this week approved a push to increase the US ethanol-to-gasoline blend rate to more than the current 10pc.

They did this as part of 'their continued strong support for America's transition to energy independence'.

Farm Bureau delegates also:

• Reaffirmed their opposition to caps on greenhouse gas emissions that would drive up the cost of fuel, fertiliser and other inputs.

• Endorsed policies aimed at expanding broadband internet access in rural areas.

• Said the concept of "sustainable agriculture" should be flexible and recognise the benefits of accepted agricultural practices.

In another session, the meeting was told that the year 2008 had been a difficult year for American businesses - and the US ethanol industry was no exception.

Unprecedented economic collapses, the freezing of the credit market, wild swings in commodity markets and a great deal of manufactured hysteria over the food versus fuel debate – all created challenging conditions for America's farmers and ethanol producers.

"But 2008 is now behind us and the American ethanol industry is completely focused on the future," Renewable Fuels Association chairman Chris Stanlee said.

"And we are dedicated to not only the success of current ethanol producers but also to the development and the deployment of next generation technologies that will expand the basket of feedstocks from which ethanol is produced.

"This will also create hundreds of thousands of green jobs in all sectors of the economy.

"It will provide even greater reductions in greenhouse gas emissions and further lessen our dependence on foreign oil."

Stanlee said that achieving the promise offered by a robust and dynamic American ethanol industry would require a steadfast commitment to renewable energy technologies from both the public and the private sectors.

Stanlee said Congress and the Obama Administration must recognise and continue to build upon the success of America's farmers and America's ethanol producers in providing a growing, renewable alternative to foreign oil and creating green jobs.

He said access to capital must be made easier in order to ensure that the more than 325,000 jobs related to ethanol production continue to be secure and that the potential of next generation ethanol technologies is realised.

The second issue Stanlee addressed was that of fuel regulations which limit ethanol blends to 10pc and the need to modernise those regulations.

"While that limit may have made sense 30 years ago when the ethanol industry was just beginning, it is no longer practical as ethanol becomes more than just a component but a fuel in its own right," Stanlee said.

"Preliminary scientific data suggests all vehicles could accommodate ethanol blends of 12-13pc with virtually no modifications required at all."

In the short-term, this increase would help buy time and provide a market for the increasing volume of ethanol coming into the market in the next two to three years.

In the longer-term Stanlee said the Environmental Protection Agency must consider moving to higher blends, such as 15-20pc, to ensure the Renewable Fuels Standard has a chance to be successful.

Data shows such a move is possible and practical, and RFA will continue to work with EPA to make changes to fuel regulations to enable this.

Stanlee said 2009 would clearly present more challenges to the American economy and to all industries, including ethanol, but he said the challenges are not insurmountable.

"The opportunities available to an ever innovating and evolving industry like America's ethanol industry far exceed any such challenges," Stanlee said.

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Switchgrass if one of the possible sources as a feedstock for ethanol output being researched in the US.
Switchgrass if one of the possible sources as a feedstock for ethanol output being researched in the US.
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Q: Are you satisfied with how your industry body is spending your producer levies?

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Total Votes: 365
Poll Date: 12 January, 2009

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