The largest single use of ethanol is as a motor fuel and fuel
additive. Ethanol is also used as fuel in bipropellant rocket
vehicles, in conjunction with an oxidizer. Alcoholic beverages use
ethanol and vary considerably in their ethanol content and in the
foodstuffs from which they are produced. Chemicals such as ethyle
esters, vinegar and ethylamines are derived from ethanol.
Large-scale production and application of fuel ethanol benefit the
countries in many economic and social ways. Ethanol is a high-octane fuel that provides superior engine
performance. Ethanol works in a car, motorcycle, boat, snowmobile
or small engine. Renewable ethanol helps to reduce harmful tailpipe
emissions and greenhouse gas emissions that contribute to global
warming. Using ethanol can help to improve air quality and protect
Using ethanol reduces the dependence on imported oil
and enhances the energy security. The use of ethanol reduces gasoline prices by expanding
fuel supplies and reducing fuel imports. Ethanol fuel can reduce the
bad effects caused by international oil price instability.
Ethanol provides a tremendous
economic boost to the economy. Using ethanol can ease the technology
problems and cost problems caused by collection and preservation of
the over surplus of grain. The production and use of ethanol
creates jobs, reduces the trade deficit, and increases state and
federal tax coffers. Ethanol is a prime source of value-added income
for farmers. Ethanol benefits family farmers and rural people.
A record number of
countries are turning to ethanol to reduce oil imports, create job
in rural communities, and improve the environment.
FACT: Since 1990, farmer-owned cooperatives are responsible
for the majority of new ethanol production capacity.
FACT: Ethanol production does not reduce the amount of food
available for human consumption. Graphic Source: FRA (Renewable Fuels
Most countries price fuel ethanol as the additive like MTBE. The
average before-tax whole sale prices for conventional gasoline, MTBE
and ethanol are relatively US$200 per metric ton, US$280 per metric
ton and US$480 per metric ton (US$320 per metric ton after deducting
US$160 of government subsidies). That is, the price of gasoline is
lower than the price of MTBE. The price of MTBE is lower than the price of
ethanol fuel. Efforts are underway to develop ethanol from cellulosic feedstocks in addition to corn because they are
substantially cheaper and more accessible. Cellulosic feedstocks could eventually
surpass corn as an ethanol source