Aug 07 2008

The Great Ethanol Fuel Boondoggle, Part I: Introduction

Table of Contents for Ethanol Boondoggle

  1. The Great Ethanol Fuel Boondoggle, Part I: Introduction
  2. The Ethanol Fuel Boondoggle, Part II: Economic Havoc is Assured
  3. The Ethanol Fuel Boondoggle, Part III: Corn Can’t Fix Our Oil Dependency

Corn

Before I get more hate mail than the server can deliver, let me be clear: I’m in favor of alternatives to our depressing dependence on petrochemicals. As a trained chemist, I enjoy looking at energy-rich alternatives to keep our civilization humming along. As a person with some social awareness, I’d like to see less impact on the environment, health and other things. (And as a person in need of exercise, I should consider biking anyway.)

But let’s face it, ethanol from corn, especially as E85 fuel, isn’t an answer. And it’s a particularly bad stop-gap measure.

This whole corn-for-fuel thing is an amazing debacle. A sordid tale of greed, competing interests, government meddling and the fears of an uninformed populace. Quick fixes and quick riches on one hand, bad energy policies and lack of direction on the other.

With an economy that cannot function without the auto (at least for now), a “perfect storm” appears and we’re swept along to a place we’ll all regret. Later, unfortunately. As a society we grab now to keep our comfortable lifestyle, with little regard for future pain.

[sound effects of soap box sliding back under the desk]

Why did we consider this “solution” in the first place? From one perspective, it’s a nearly perfect replacement for current transportation fuels. Here are a few key advantages:

  • Renewable, potentially sustainable, liquid energy source
  • Can be produced in the U.S., using known technology
  • The supply chain (storage, transport, delivery) is in place (more in a bit)
  • Many vehicles can burn it
  • Not very toxic, “safe” to handle (about like gasoline, in many respects)
  • Research tests show ethanol is 96 octane (also more later)
  • Opportunites in rural America are improved
  • There are positive environmental benefits

Ah sweet seduction! Look, it’s got all these neat properties, and it’s better for us than gasoline! And for a civilization based on fire, we’ve got to have something like this. So why not get on with it?

Not so fast; there are some drawbacks even at this level of consideration:

  • Ethanol is a corrosive liquid, more so than gasoline or diesel, so the supply chain has some work to do to handle it routinely.
  • Conversion from all-gasoline equipment at a service station costs at least $200,000, and with E85 selling more cheaply than gas, it’s hard to recoup these investments.
  • Ethanol has lower energy content per gallon (a recent test showed a 30% reduction in mpg, and my personal test in a Highlander Hybrid gave a 14% loss in mpg).
  • Ethanol mixed with gasoline is found to release other chemicals like peroxyacetyl nitrate, formaldehyde, and acetaldehyde into the air; these are potentially bad for your health, both short- and long-term.
  • There are fewer locations to obtain E85, should you desire it; less than 1% of fuel outlets carry E85 today (1,500 out of 176,000 gas stations).

This essay series isn’t about these disadvantages. Actually, these issues all look manageable with some tweaks, so they actually make E85 look more attractive. After all, the advantages are so large, and the disadvantages are no biggies; again, why wait to implement?

One answer: Simple economics. Or maybe not so simple.

For one sneak peek, let’s consider the overall energy balance from seed to your family hybrid sedan. (You DID sell that gas-guzzling SUV, right?) Ethanol is touted as liquid sunshine, delivered cleanly to your fuel tank. Agreed, initially; corn is an efficient converter of solar photons into chemical energy, stored in sugars (and other biochemicals), which can be released through appropriate transformation (such as fermentation and distillation).

However, each step in this chain takes energy, both operational (tractors, equipment) and capital investment (building the farming, fermenting, distillation and delivery gear). There is a lot of discussion and research about exactly how much energy, but one thing is clear: A lot of energy is used up before you ever turn the ignition switch on your car.

With the recent “tipping point” we reached in gasoline costs, E85 is more seductive than ever. Hopefully, I can show you where this path leads at the micro- and macroscopic scale, and you’ll understand why we need to quickly nip this initiative in the bud and get back to searching for viable, long-term solutions to our energy crunch.

Because this subject is involved, intense and extensive, I will break the discussion into several mini-essays, looking in detail at the energy balance of ethanol, the economics, governmental mis-steps and the social costs, among other areas of importance. And who knows? Maybe we’ll uncover a juicy conspiracy or two along the way. (Big Oil and Big Government? Naw, couldn’t happen; right? RIGHT??)

Seeya ‘Round the Ol’ Gas Pumps…

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