6 Benefits E15 Can Bring To Fuel

E15, gasoline blended with 15% ethanol, was approved to be sold in the U.S. by the EPA in early 2010.  Currently most fuel stations across the country use E10 a fuel blend that has only 10% ethanol, but the move to E15 could provide U.S. fuel consumers with many benefits.  Here are the top 6 benefits to Americans by switching to E15.

1. Stimulates the American economy – By switching to E15 additional ethanol will need to be created to in order to supply the demand which will create more jobs.  It estimated by only increasing ethanol blends in fuel by 5% over 136,000 new jobs will be created.
2. Reduces dependence on foreign oil – The use of ethanol reduces America’s dependence on foreign oil.  In 2010 E10 reduced American oil imports to the amount of 445 million barrels.  E15 will require 7 billion less gallons of oil to produce gasoline.
3. 67% of current vehicles can use E15 – Passenger cars built after 2001 are cleared to use this fuel, and as more new cars enter the market they will also be able to take advantage of using E15.  For those that can’t use E15 clear warning labels are going to be presented at gas stations.
4. Encourages the creation of vehicles that can handle higher ethanol blends – More ethanol needed to fuel cars will require auto makers to invest in making vehicles that can run using different types of fuel.  This could create healthy competition in the market place for fuel and give American’s a choice in what they fill their vehicles up with, rather than having only one practical choice, oil.
5. Encourages more research into cellulosic ethanol – Research in cellulosic ethanol was stalled until the EPA allowed E15 to be used.  This occurred because ethanol supply had met ethanol demand and a new source for ethanol would not be needed.  Why is cellulosic ethanol research important?  Cellulosic ethanol would allow energy to be created out of non edible parts of plants.  In short it’s energy (ethanol) that would be created from woodchips, corn stalks, switchgrass, etc. which means it’s essentially turning bio-waste into fuel.
6. Grain ethanol has 59% fewer green house gas emissions than conventional gasoline – In the life cycle analysis research published in Yale University’s Journal of Industrial Ecology discovered grain ethanol had 59% fewer green house gas admissions than conventional gasoline.

Source:

http://www.growthenergy.org/

A Look at How The Energy Crisis of the 1970’s Propelled Ethanol Back Into The Fuel Market

1978-1979 were significant years in the history of fuel ethanol.  During these years the Iranian Revolution had gone underway, and during November of 1978 a strike led by 37,000 of Iran’s oil refinery laborers led to a significant decrease in oil production (6 million barrels a day to 1.5 million barrels a day).  The Shah of Iran Mohammed Reza Pahlavi had to flee the country and U.S. President Jimmy Carter ordered a termination of imports from Iran.

Realizing that the American energy supply was in jeopardy, the U.S. Congress passed the Energy Tax Act that same month.  The purpose of this act was to promote energy conservation and to shift American energy away from oil and fuel towards renewable sources of fuel.

Despite passing this act, beginning in 1979 the most significant energy crisis had begun in the U.S., the price of oil had more than doubled ($15.85/barrel to $39.50/barrel) and long lines began to appear at gas stations in fear of a gasoline shortage.  However this energy shortage alerted the U.S. public to the need for alternative sources of energy, and would provide more popular support for future alternative energy bills that would be brought before Congress.

Once the Energy Crisis of 1979 subsided the long term benefits of the Energy Tax Act began to take hold.  The Energy Tax Act also gave 4 cents a gallon tax exemption on gasoline that contained 10% ethanol, which resulted in the first significant research in developing ethanol for fuel in the U.S. that gone underway in more than fifty years.

Throughout the 1980’s and 1990’s ethanol production grew steadily as E10 became a common fixture in gasoline.  It wasn’t until 2005 that ethanol received its next big boost in the market place with the Energy Policy Act.  This act provided tax incentives and loans for various forms of energy production including: coal, biofuel, wind, ocean, geothermal, and nuclear energy.

In 2007 the Energy Independence and Security Act (a kind of extension for the Energy Policy Act) was passed and signed into law by George W. Bush.  This new act requires automakers to boost fleetwide gas mileage to 35mpg by 2020, offers incentives for the development of plug-in or hybrid vehicles, and that biofuel production increase to 36 billion gallons a year by 2022.

Between 2005 and 2010 (when these two Acts were first passed into law) ethanol production in the U.S. has more than tripled.  Ethanol has re-emerged in the market place, and right now ethanol production continues to be encouraged by the government and U.S. consumers with the recent mandate by the EPA to increase the amount of ethanol in gasoline from E10 (10% ethanol) to E15 (15% ethanol), and by the Obama administrations plans to install an additional 10,000 flex fuel pumps throughout the U.S. over the next 5 years.

Sources:

The Energy Policy Act:http://www.doi.gov/pam/EnergyPolicyAct2005.pdf

The Energy Independence and Security Act (CRC Report to Congress) a summary of the bill http://assets.opencrs.com/rpts/RL34294_20071221.pdf

http://www.agjournalonline.com/news/x1798431020/USDA-to-fund-more-blender-pumps

http://www.davemanuel.com/investor-dictionary/1979-energy-crisis/

In October 2010 Brian France, NASCAR’s 3rd generation chairman, announced that NASCAR would be fueling its racecars with E15 blended ethanol for the 2011 season.  By reducing the amount of gasoline used in their fuel NASCAR hopes to promote the use of ethanol as a commerical fuel to its loyal fan base.

NASCAR’s fans are well known as the most brand loyal fans in sports, and it is the second most watched regular season sport in television, with 100 million viewers tuning in each year.  Hoping to grab the attention of its large loyal fan base NASCAR has begun airing commercials with pro farming and ethanol messages, using American Ethanol flags at its start and finish lines, and by promoting ethanol products at race events.  At the 2011 FEW Ethanol Trade Show Brian France had this to say about the way ethanol has effected NASCAR so far

“E15 hasn’t caused a single problem for NASCAR.  In fact, it’s a higher combustion fuel that provides increased horsepower and only a slight decrease in mileage. This fuel has been a great fuel for NASCAR and we’re happy to be your partner.”

After a rigorous testing process with NASCAR’s fuel partner Sunoco the E15 fuel blend first saw action at the 2011 Daytona 500.  Halfway through this year’s NASCAR season the driver’s and their crew’s have been pleased by the transition.  Early on in the testing phases the ethanol blended fuel was also contributing to higher horsepower, and as the season has progressed this has become apparent on the racetrack.  NASCAR’s fuel deal with ethanol is scheduled to last six years.

The goal of promoting American ethanol is to increase America’s energy independence.  American ethanol contributes over $92 billion dollars to the American economy, has created and supported over 654,000 jobs, and reduced American greenhouse gas emissions by 59%.  This will ultimately help reduce America’s dependence on foreign oil and increase America’s energy.

Sources: www.americanethanolracing.com, www.ethanolproducer.com, and Ethanol Producer Magazine July 2011