Facts about Ethanol's Impact

Here are a few simple facts about how ethanol impacts the economy near an ethanol plant, these facts speak for themselves-

$19.6 million increase in annual household income near ethanol plant
$1.2 million increase in tax revenue
and nearly 700 jobs are made in the area not only in the plant itself, but all the stores and other things in the area.

ethanol.org

the-real-truth.org

Fuel Economy

Vehicles were not built to run off ethanol just a few decades ago. There engines were meant to be run on pure gasoline and that is how they got the greatest gas mileage. When they used ethanol they would not run as efficiently or with as much power. Cars have since evolved. Since corn ethanol is so readily available and so much less expensive for many people, cars have changed to the point where they are meant to run on ethanol. These cars can get just as good of gas mileage as those that run of strictly gasoline. This allows for greater expansion in the market of ethanol production and sales, which impacts the economy greatly, and also changes the auto market with it.

environment.about.com

auto.howstuffworks.com

Impact on Farming

Ethanol not only impacts the price of gasoline, but also the price that corn is bought and sold at. This is due to the great demand for ethanol production. The production of ethanol drives the amount of corn needed in certain areas exponentially. Some see this as a good thing because it drives corn producers to make more corn and puts much more money in their pockets. But on the other hand, this growth in the price of corn also affects everyday consumers by causing the price of food to increase. Anything that has corn in it will rise because of the rise in corn prices.

usatoday.com

card.iastate.edu

Prices of Ethanol

Ethanol has a huge impact on the economy in many different ways, some of which I will describe in further detail in a later post. But for now my focus is on the price of ethanol. Ethanol's price varies from state to state. Some of which is dependent on the geographical surroundings and some is based on the size of the city. The cheapest place to purchase ethanol is in the mid west and primarily in the state of Iowa. This is due to the large amount of corn production that is done in the state. This allows Iowans to help other Iowans more and drives the production of corn much higher as well. On the other hand ethanol can be more expensive in other states and places farther from where it is being produced. But it becomes a trade off due to its greater environmental impact. The price of ethanol can range from 50 cents below that of premium, to 20 cents over the price of premium.

fueleconomy.gov

futurity.org

Types of Ethanol

There are many differnt mixtures of Ethanol that are widely used on the market today. It can be mixed in nearly any percentage depending on the gas station and the location of the station. The normal mixture of gasoline to alcohol in the ethanol is only about 10 percent corn alcohol. But there are many other mixtures, one of the common new mixtures is 85% alcohol and 15% gasoline. This is e85 which can only be run in e85 equipped engines which are only sold in newer vehicles. Almost every other vehicle is able to run on 10 percent ethanol without problem. In many midwest areas this is less expensive than premium gas and draws more people to buy the mixtures.

Fueleconomy.gov



seco.cpa.state.tx.us

What is Ethanol

What is ethanol? Ethanol is a corn based fuel, developed from fermenting corn mash which produces an alcohol that is then mixed with gasoline. This alcohol substance is 100 percent alcohol and is fairly easy to produce. The corn mash is developed by mashing the corn into a substance that is able to ferment. They have machines that are designed to do this. Then the corn mash is sent to the fermentors where it is turned to alcohol. Then this alcohol is diluted to a level that is acceptable for transport and taken to different plants where it is mixed directly with the gasoline to produce the different mixtures of ethanol. The left over corn bi product is sold to farmers as animal food.

fueleconomy.com



technologyz.info

Demand

Demand for ethanol has risen the past decade to a place where it is nearly double that of the past. From nearly 4 billion gallons a year to almost 8 billions gallons a year. This is due to the price decrease when using ethanol in the midwest and the mixture used in gasoline today. This increase in gallon demand has a very wide impact in the areas that it is purchased and the areas that it is produced.
Ethanolacrossamerica.com



derek.broox.com

Economy

Over the last ten years it is estimated that renewable fuels will generate between two and four billion in net farm income. This is a very large push for the farming industry and helps to keep the industry afloat. The production of ethanol helps the community directly surrounded by the ethanol plant by infusing large amounts of money into the economy. The ethanol production also raises corn prices around five to ten dollars a bushel in areas near plants. This helps local farmers greatly.
via ethanol.org



kansasgains.wordpress.com

Ethanol Plants

With a majority of ethanol plants being located in the mid west, Iowa, Missouri, Kansas, Illinois. There are around 200 ethanol plants located all throughout the United States. These plants bring jobs to the areas that they are located in through jobs on building the plants and through continued work in the plants. With such a large number of plants we have seen a great increase in production.

Courtesy of ethanolproducer.com

biofuels.apec.org

History

While sources may show that ethanol has been around for nearly 100 years, the use of ethanol has really started to soar in the last 40. The oil embargo in the 70's and the rise in crude oil prices in the 80's and now 2000's, ethanol has changed our lives. This whole boom started with one small company in the midwest selling to local gas companies to mix with their fuel, and then sell to a small number of stations. The first major plants purposes were to impact the commercial market but their were to many barriers to cross and that had to wait.

Thanks for the history lesson from ethanolacrossamerica.net


picture from treehugger.com