The United States became the world's largest producer of ethanol fuel in 2005. The U.S. produced 15.8 billion U.S. liquid gallons of ethanol fuel in 2019, up from 13.9 billion gallons (52.6 billion liters) in 2011, and from 1.62 billion gallons in 2000. Brazil and U.S. production accounted for 87.1% of global production in 2011. In the U.S., ethanol fuel is mainly used as an oxygenate in gasoline in the form of low-level blends up to 10 percent, and, increasingly, as E85 fuel for flex-fuel vehicles. The U.S. government subsidizes ethanol production.
The ethanol market share in the U.S. gasoline supply grew by volume from just over 1 percent in 2000 to more than 3 percent in 2006 to 10 percent in 2011. See pp. 10.See pages 2–3, 10–11, 19–20, and 26–27. Domestic production capacity increased fifteen times after 1990, from 900 million US gallons to 1.63 billion US gal in 2000, to 13.5 billion US gallons in 2010. The Renewable Fuels Association reported 209 ethanol distilleries in operation located in 29 states in 2011.
By 2012 most cars on U.S. roads could run on blends of up to 10% ethanol (E10), and manufacturers had begun producing vehicles designed for much higher percentages. However, the fuel systems of cars, trucks, and motorcycles sold before the ethanol mandate may suffer substantial damage from the use of 10% ethanol blends. Flexible-fuel cars, trucks, and minivans use gasoline/ethanol blends ranging from pure gasoline up to 85% ethanol (E85). By early 2013 there were around 11 million E85-capable vehicles on U.S. roads. Regular use of E85 is low due to lack of fueling infrastructure, but is common in the Midwest. In January 2011 the U.S. Environmental Protection Agency (EPA) granted a waiver to allow up to 15% of ethanol blended with gasoline (E15) to be sold only for cars and light pickup trucks with a model year of 2001 or later. The EPA waiver authorizes, but does not require stations to offer E15. Like the limitations suffered by sales of E85, commercialization of E15 is constrained by the lack of infrastructure as most fuel stations do not have enough pumps to offer the new E15 blend, few existing pumps are certified to dispense E15, and no dedicated tanks are readily available to store E15.
Historically most U.S. ethanol has come from corn, and the required electricity for many distilleries came mainly from coal. There is a debate about ethanol's sustainability and environmental impact. The primary issues related to the large amount of arable land required for crops and ethanol production's impact on grain supply, indirect land use change (ILUC) effects, as well as issues regarding its energy balance and carbon intensity considering its full life cycle.Youngquist, W. Geodestinies, National Book company, Portland, OR, 499p.
History
In 1826 Samuel Morey experimented with an internal combustion chemical mixture that used ethanol (combined with turpentine and ambient air then vaporized) as fuel. At the time, his discovery was overlooked, mostly due to the success of steam power. Ethanol fuel received little attention until 1860 when Nicholas Otto began experimenting with internal combustion engines. In 1859, oil was found in Pennsylvania, which decades later provided a new kind of fuel. Popular fuels in the U.S. before petroleum were a purified form of spirits of turpentine called camphene, and a blend of turpentine and alcohol known as burning fluid.
In 1896, Henry Ford designed his first car, the "Quadricycle" to run on pure ethanol. In 1908, the revolutionary Ford Model T was capable of running on gasoline, ethanol or a combination. Ford continued to advocate for ethanol fuel even during the prohibition, but lower prices caused gasoline to prevail.
Gasoline containing up to 10% ethanol began a decades-long growth in the United States in the late 1970s. The demand for ethanol produced from field corn was spurred by the discovery that methyl tertiary butyl ether (MTBE) was contaminating groundwater. MTBE's use as an oxygenate additive was widespread due to mandates in the Clean Air Act amendments of 1992 to reduce carbon monoxide emissions. MTBE in gasoline had been banned in almost 20 states by 2006. Suppliers were concerned about potential litigation and a 2005 court decision denying legal protection for MTBE. MTBE's fall from grace opened a new market for ethanol, its primary substitute. Corn prices at the time were around US$2 a bushel. Farmers saw a new market and increased production. This demand shift took place at a time when oil prices were rising.
The steep growth in twenty-first century ethanol consumption was driven by federal legislation aimed to reduce oil consumption and enhance energy security. The Energy Policy Act of 2005 required use of of renewable fuel by 2012, and the Energy Independence and Security Act of 2007 raised the standard, to of annual renewable fuel use by 2022. Of this requirement, had to be advanced biofuels, defined as renewable fuels that reduce greenhouse gas emissions by at least 50%.
Recent trends U.S. fuel ethanolproduction and imports(2000–2011)(Millions of U.S. liquid gallons)YearProductionImportsDemand2000 1,630n/a n/a2001 1,770n/a n/a2002 2,13046 2,0852003 2,80061 2,9002004 3,400161 3,5302005 3,904135 4,0492006 4,855653 5,3772007 6,500 450 6,8472008 9,000 556 9,637200910,600 193 10,940201013,298 10 13,184201113,929160n/a(1)201213,218201313,293201414,313201514,807201615,413201715,936201816,091201915,776Note: Demand figures includes stocks change andsmall exports in 2005.(1) Exports in 2011 reached a record 1,100 billion gal.
The world's top ethanol fuel producer in 2010 was the United States with 13.2 billion U.S. gallons (49.95 billion liters) representing 57.5% of global production, followed by Brazil with 6.92 billion U.S. gallons (26.19 billion liters), and together both countries accounted for 88% of the world production of 22.95 billion U.S. gallons (86.85 billion liters). By December 2010 the U.S. ethanol production industry consisted of 204 plants operating in 29 states, and 9 plants under construction or expansion, adding 560 million gallons of new capacity and bringing total U.S. installed capacity to 14.6 billion U.S. gallons (55.25 billion liters). At the end of 2010 over 90 percent of all gasoline sold in the U.S. was blended with ethanol.
Production
Beginning in late 2008 and early 2009, the industry came under financial stress due to that year's economic crisis. Motorists drove less and gasoline prices dropped sharply, while bank financing shrank. As a result, some plants operated below capacity, several firms closed plants, others laid off staff, some firms went bankrupt, plant projects were suspended and market prices declined. The Energy Information Administration raised concerns that the industry would not meet the legislated targets.
As of 2011, most of the U.S. car fleet was able to run on blends of up to 10% ethanol, and motor vehicle manufacturers produced vehicles designed to run on more concentrated blends. As of 2015, seven states – Missouri, Minnesota, Louisiana, Montana, Oregon, Pennsylvania, and Washington – required ethanol to be blended with gasoline in motor fuels. These states, particularly Minnesota, had more ethanol usage, and according to a source at Washington University, these states accumulated substantial environmental and economic benefits as a result. Florida required ethanol blends as of the end of 2010, but has since repealed it. Many cities had separate ethanol requirements due to non-attainment of federal air quality standards.3 states, many cities In 2007, Portland, Oregon, became the first U.S. city to require all gasoline sold within city limits to contain at least 10% ethanol.Introduction: The Clean Tech Opportunity p. 3.Portland requires stations to sell biofuels, giving farmers a boost|Post Carbon Cities Chicago has proposed the idea of mandating E15 in the city limits, while some area gas stations have already begun offering it.
Expanding ethanol (and biodiesel) industries provided jobs in plant construction, operations, and maintenance, mostly in rural communities. According to RFA the ethanol industry created almost 154,000 U.S. jobs in 2005, boosting household income by $5.7 billion. It also contributed about $3.5 billion in federal, state and local tax revenues.Worldwatch Institute and Center for American Progress (2006).American Energy: The Renewable Path to Energy Security
E85 vehicles
Ford, Chrysler, and GM are among many automobile companies that sell flexible-fuel vehicles that can run blends ranging from pure gasoline to 85% ethanol (E85), and beginning in 2008 almost any type of automobile and light duty vehicle was available with the flex-fuel option, including sedans, vans, SUVs and pickup trucks. By early 2013, about 11 million E85 flex-fuel cars and light trucks were in operation, though actual use of E85 fuel was limited, because the ethanol fueling infrastructure was limited. For a complete and updated listing, go to www.e85refueling.com
As of 2005, 68% of American flex-fuel car owners were not aware they owned an E85 flex. Flex and non-flex vehicles looked the same. There was no price difference. American automakers did not label these vehicles. See Chapter 6. Homegrown Energy In contrast, all Brazilian automakers clearly labeled FFVs with text that was some variant of the word Flex. Beginning in 2007 many new FFV models in the U.S. featured a yellow gas cap to remind drivers of the E85 capabilities. As of 2008, GM badged its vehicles with the text "Flexfuel/E85 Ethanol". Nevertheless, the U.S. Department of Energy (DOE) estimated that in 2009 only 504,297 flex-fuel vehicles were regularly fueled with E85, and these were primarily fleet-operated vehicles. See Table 6.1 pp. 6–3. As a result, only 712 million gallons were used for E85, representing just 1% of that year's ethanol consumption. See Table 2.4
During the decade following 2000, E85 vehicles became increasingly common in the Midwest, where corn was a major crop.
Fueling infrastructure has been a major restriction hampering E85 sales. , there were 3,028 fueling stations selling E85 in the U.S. Most stations were in the Corn Belt states. As of 2008 the leading state was Minnesota with 353 stations, followed by Illinois with 181, and Wisconsin with 114. About another 200 stations that dispensed ethanol were restricted to city, state and federal government vehicles.
E15 blend
In March 2009 Growth Energy, a lobbying group for the ethanol industry, formally requested the U.S. Environmental Protection Agency (EPA) to allow the ethanol content in gasoline to be increased to 15%, from 10%. In October 2010, the EPA granted a waiver to allow up to 15% blends to be sold for cars and trucks with a model year of 2007 or later, representing about 15% of vehicles on the roads. In January 2011 the waiver was expanded to authorize use of E15 to include model year 2001 through 2006 passenger vehicles. The EPA also decided not to grant any waiver for E15 use in any motorcycles, heavy-duty vehicles, or non-road engines because current testing data does not support such a waiver. According to the Renewable Fuels Association the E15 waivers now cover 62% of vehicles on the road in the country. In December 2010 several groups, including the Alliance of Automobile Manufacturers, the American Petroleum Institute, the Association of International Automobile Manufacturers, the National Marine Manufacturers Association, the Outdoor Power Equipment Institute, and the Grocery Manufacturers Association, filed suit against the EPA. In August 2012 the federal appeals court rejected the suit against the EPA ruling that the groups did not have legal standing to challenge EPA's decision to issue the waiver for E15. In June 2013 the U.S. Supreme Court declined to hear an appeal from industry groups opposed to the EPA ruling about E15 and let the 2012 federal appeals court ruling stand.