Presentation discussing not using corn ethanol as a fuel additive.

2. Fuel or Food?
Can we afford to ask the question?
Kennis Wooten
April 8, 2009

3. Corn based ethanol should not be
produced as a additive for petroleum

4. Agenda
• Industry Background
• Why corn ethanol made sense
• Why it is not the best source
• Conclusion

5. Industry Background
• Ethanol first used in 1908, Model-T
• Energy Tax Act 1978
• $45B industry and growing
• US capacity 7M gal./yr.
• 77 plants under construction or expanding
Source: e85.whipnet.net/ethanol.history; Inside F.E.R.C’s Gas Market Report

6. Industry Background
• US largest corn exporter
• US mandates
– 36B gal./yr. of ethanol by 2022
• 15B gal. from corn
– Currently 9B
Source: e85.whipnet.net/ethanol.history;

7. Why it made sense
• Renewable source of energy
• Grown locally
• Widely available
• Reduces CO2 emissions
• Positive energy balance - initially
reported
Source: www.ethanolrfa.org;

8. Why it is not the best now
• Not driven by a free market economy
• It takes away from the food supply
and has neg. environmental impacts
• It is not a substantial net-positive
energy source

9. Why it is not the best now
• Production doesn’t encourage a free market
economy
– Not consumer driven
– Stiff penalties for not meeting demand
– Corn growers receive $5B in Federal subsidies

10. Why it is not the best now
• It takes away from the food source and
destroys habitats
– Cornell study found $1B impact to beef
production
– Export countries greatly impacted
– Greater use of pesticides and fertilizer
Source: www.news.cornell.edu

11. Why it is not the best now
World food demand
Source: Iowa State Univ. Center for Agricultural & Rural Development

12. Why it is not the best now
Source: www.seattlepi.com

13. Why it is not the best now
• It is not a substantial net-positive
energy source
– It takes more energy to produce than it makes.
– CO2 emission reduction not as great as other
sources.
– Vehicles using ethanol get poorer mileage per
gal.

14. Why it is not the best now
Energy balance for various ethanol sources
Source: National Geographic

15. Why it is not the best now
CO2 Emissions for various ethanol sources
Source: National Geographic

16. Why it is not the best now
Source: Consumerreports.com

17. Conclusion
• Corn ethanol is not the most effective fuel
source
• Not driven by a free-market economy
• Greatly impacts an already stressed food
supply
• It’s all about balance
• Just think Rube!