The growth of the ethanol industry means that ethanol will be entering the fuel supply in new areas of the United States. In California alone, ethanol has grown from being virtually absent just a few years ago to a demand of nearly 1 billion gallons used in 2007.

In spite of the outstanding track record of ethanol for our economy, our environment and our energy supply, some myths still exist—and those who oppose the growth of renewable fuels many times resurrect these myths in an attempt to discredit the ethanol industry.

For more than two decades, NCGA has been promoting the development of the ethanol industry. Here are the facts that kill the myths:

FACT: While many predicted that the switch from MTBE to ethanol would increase the price at the pump, the fact is that there has been no negative impact on gasoline supplies or the cost per gallon of gasoline. Ethanol is less expensive than other oxygenates and octane enhancers. In fact, ethanol is also less expensive that ordinary gasoline.

The net effect of blending ethanol with gasoline is actually a product that costs less—and that has been proven as oil prices have escalated of late. A May 2005 report by the Consumer Federation of America notes that drivers everywhere should be saving as much as eight cents per gallon if petroleum marketers would simply blend ethanol into more gasoline. (Read Study)

FACT: Because ethanol is inherently cleaner than gasoline, it emits less hydrocarbons, nitrogen oxides, carbon monoxide and hydrogen. Ethanol reduces carbon monoxide emissions by as much as 25 percent—and less carbon monoxide helps reduce ozone formation and helps reduce levels of greenhouse gases.

According to EPA, gasoline is the largest source of manmade carcinogens. Ethanol reduces overall toxic pollution by diluting harmful compounds found in gasoline such as benzene and other aromatics.

FACT:Every major automobile manufacturer approves the use of ethanol blends up to 10 percent (E-10 Unleaded) under warranty. In fact, many auto manufacturers go so far as to recommend the use of clean, renewable fuels such as E-10 Unleaded. Cars built since the 1970s are fully compatible with E-10 Unleaded.

In addition, ethanol in gasoline:

• Adds oxygen to the fuel, thereby raising the air/fuel ratio for more complete combustion;
• Eliminates the need and expense of adding a gas line antifreeze, since the ethanol in the gasoline absorbs more water than a small bottle of isopropyl;
• Prevents burning of engine valves because ethanol burns cooler than gasoline;
• Prevents build-up of olefins in fuel injectors, thus keeping the fuel system cleaner.

FACT: In June 2004, the U.S. Department of Agriculture updated its 2002 analysis of the issue and determined that the net energy balance of ethanol production is 1.67 to 1. For every 100 BTUs of energy used to make ethanol, 167 BTUs of ethanol is produced. In 2002, USDA had concluded that the ratio was 1.35 to 1. The USDA findings have been confirmed by additional studies conducted by the University of Nebraska and Argonne National Laboratory.

These figures take into account the energy required to plant, grow and harvest the corn—as well as the energy required to manufacture and distribute the ethanol.

The net energy balance of ethanol production continues to improve because ethanol production is becoming more efficient. For example, one bushel of corn now yields 2.8 gallons of ethanol—up from 2.5 gallons just a few years ago.

FACT: Because the energy balance of ethanol production is positive (1.67 to 1), greenhouse gas benefits are also positive. The Argonne National Laboratory has demonstrated that using ethanol produces 32 percent fewer emissions of greenhouse gases than gasoline for the same distance traveled.

Ethanol also reduces emissions of other harmful pollutants such as carbon monoxide—and it dilutes and displaces components of gasoline that produce toxic emissions.

According to a recent study by Smog Reyes: “Ethanol currently is the only compound that can be blended with gasoline to help reduce global warming…”

FACT: Wet mill ethanol production facilities are also know as corn refineries—and they also produce starch, corn sweeteners, and corn oil—all products that are used as food ingredients for human consumption.

The corn used for ethanol production is field corn typically used to feed to livestock. Ethanol production also results in the production of distillers grains and gluten feed—both of which are fed to livestock as well, helping produce high quality meat products for distribution domestically and abroad.

There is no shortage of corn. In 2007, U.S. farmers produced a record 13.1 billion bushel corn harvest—and some 2.3 billion bushels (about 13 percent) were used in ethanol production. In other words, there is still room to significantly grow the ethanol market without limiting the availability of corn. Steadily increasing average corn yields and the improved ability of other nations to grow corn also make it clear that ethanol production can continue to grow without affecting the food supply.

FACT: The ethanol industry opens a new market for corn growers, allowing them to enjoy greater profitability. Studies have shown that corn prices in areas near an ethanol plant tend to be five to 10 cents per bushel higher than in other areas. This additional income helps cut the costs of farm programs and helps add vitality to rural economies. And the additional profit potential for farmers created by ethanol production allows more farmers to stay in business—helping ensure adequate food suppliers in the future.

Ethanol production also creates jobs—many of them in rural communities where good jobs are hard to come by. A January 2005 study by LECG found that the ethanol industry powered the U.S. economy by creating more than 147,000 jobs, boosting U.S. household income by $4.4 billion and reducing the U.S. trade deficit by $5.1 billion by eliminating the need to import 143.3 million barrels of oil.

Those kinds of numbers help farmers—and all Americans.