IN THE COMING DECADE, the world is facing three enormous energy-related challenges: increased and sustained energy demand, energy security, and climate protection. One solution is rising to the forefront — biofuels — alternative liquid transportation fuels, such as ethanol and biodiesel, made from renewable agricultural resources. Experts believe the use of biofuels such as ethanol, rather than fossil fuels, can lead our country, and the world, to a cleaner, greener, and more secure energy future.
The United States imports over 65% of the oil it consumes, and most of this is from unstable or unfriendly parts of the world. Our ever-increasing appetite for imported petroleum is only exceeded by the developing countries of the world, in particular, China and India. Since the global economy is so tightly tied to petroleum-based products and oil imports, a disruption, or the threat of disruption, could have profound economic and social consequences. The energy dilemma is further compounded by rising concerns that emissions from burning fossils fuels are harming the environment and fostering global climate change by producing significant levels of greenhouse gasses.
In the United States, an increasing number of local, state, and federal policies and initiatives are aimed at reducing the dependence on imported sources of oil. In 2006, the U.S. produced a record 4.9 billion gallons of ethanol. In 2007, President Bush called for a mandate to reduce gasoline usage by 20% in the next 10 years. To achieve this, the President urged the use of 35 billion gallons of renewable and alternative fuels in the United States by 2017. The Energy Policy Act of 2005 requires the production of 7.5 BGY (billion gallons per year) of biofuels by 2012. The Governors’ Ethanol Coalition is promoting an initiative requiring 60 billion gallons of ethanol by 2030.
Currently, almost half of all gasoline sold in the U.S. contains ethanol, most as E10, a blend of 10% ethanol and 90% gasoline. Ethanol is used largely as a replacement for the oxygenate MTBE, which was found to pollute ground water. By June 2006, ethanol had successfully replaced MTBE in virtually every gallon of reformulated gasoline where it was still being used.
The production and availability of flexible fuel vehicles (FFVs) — vehicles capable of operating on gasoline with a greater than 10% proportion of ethanol — is increasing in the U.S., along with the number of filling stations offering biofuel blends. There are over six million FFVs on the road today and over 1,000 filling stations that offer E85, a blend of 85% ethanol and 15% gasoline. Although these trends are relatively modest in comparison to Brazil where seven out of ten new cars are FFVs, nevertheless, they are good indicators of the long-term viability of U.S. biofuel-based transportation.
As the U.S. looks to move beyond the hydrocarbon economy for answers to our energy challenge, experts at the U.S. Department of Energy (DOE) are focused on biofuels. A 2006 DOE report titled “Biofuels Joint Roadmap” states, “Biofuels, especially corn-derived and cellulosic ethanol, constitute the only renewable liquid transportation fuel option that can be readily integrated with petroleum-based fuels, fleets, and infrastructure.” Ethanol is viewed as the most practical and attractive alternative fuel on the horizon. It has the potential to “provide substantial benefits to national energy security, economic growth, and environmental quality.”
