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This short video below discusses some interesting facts about ethanol; its production; how its better than gasoline for the environment; and how its also good for the farmers that grow the corn used in ethanol production.

The History of Ethanol

Ethanol is not a new type of fuel developed only recently. In fact, it has been used since the 1820’s. In 1826, Samuel Morey developed an engine that ran on ethanol and turpentine. This is considered by many to be the first real use of ethanol.

In the 1850’s, ethanol was a major lighting fuel. When the Civil War struck the United States, a liquor tax was placed on ethanol to raise money for the war. The price of ethanol got so high that it could no longer compete with other fuels such as kerosene in lighting devices. The production and consumption of ethanol dropped sharply because of this tax. For years ethanol was seen as too expensive compared to other fuels. That was until the tax was removed in 1906.

In 1908, Henry Ford designed his new car, the Model T, to run on a mixture of gasoline and alcohol. Henry Ford envisioned ethanol as the fuel of the future. His vision was to “build a vehicle affordable to the working family and powered by a fuel that would boost the rural farm economy.”

The prosperity of ethanol fuel continued during World War I, when the demand reached 50-60 million gallons per year.

Ethanol production took a big hit with the introduction of prohibition. Ethanol was banned because it was considered liquor. The only way ethanol could be sold was if it was mixed with petroleum. Gasoline then became the main fuel of choice. When prohibition ended in 1933, the ethanol market rose slightly.

After the high demand for ethanol during World War II, it was no longer needed for war materials, and thus there was a tremendous decrease in the usage of ethanol fuel.

It wasn’t until the 1970’s that interest in ethanol was revived. Embargos by major oil companies caused a gasoline shortage and almost overnight ethanol started to be used again.

Since then, ethanol fuel has steadily increased. The government encourages the use of ethanol fuel by offering tax benefits to producers.

In 1988, ethanol began to be added to gasoline for the purpose of reducing carbon monoxide emissions.

Today, the introduction of hybrid cars and other environment-friendly cars are becoming more necessary for two reasons: One is the price of oil and gasoline has reached all time highs, thus forcing consumers to think twice about what type of car they buy. The second is the safety of the environment. Ethanol fuel greatly decreases emissions, which helps protect the environment.

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Survey finds less optimism for rural economies
Recent rains and demand for ethanol are bright spots, however. Creighton University economics professor Ernie Goss says the bankers reported slight growth in August, but predict a softer rural economy overall ...
High-value chemicals produced from ethanol feedstocks could boost biorefinery economics
Biorefineries developed to produce ethanol from cellulose sources such as trees and fast-growing plants could get a significant economic boost from the sale of high-value chemicals - such as vanillin flavoring - that could be generated from the same feedstock. Revenue from these "side stream" chemicals could help make ethanol produced by biorefineries cost competitive with traditional fossil fuels.
High-value chemicals produced from ethanol feedstocks could boost biorefinery economics
(EurekAlert) Research aimed at producing high-value products from cellulose feedstocks is being done through the AtlantIC Alliance, a coalition of three research institutions in the United States and the United Kingdom. The alliance, which includes Oak Ridge National Laboratory, Imperial College and Georgia Tech, seeks to solve the complex issues involved in economically producing ethanol fuel from cellulose materials such as wood chips, sawgrass, corn stovers - and even municipal waste. ...9/10
USA. Ethanol price tumble could spur Gasohol resurgence
Agricultural conglomerate Archer Daniels Midland (ADM) revealed today that profits doubled in its most recent quarter, thanks in part to higher sales and higher profits for ethanol. But analysis by Oil Price Information Service (OPIS) suggests that big changes are in store for ethanol economics and sales.
Johnson to speak to Women In Farm Economics
Sioux Falls - U.S. Senator Tim Johnson will speak to the annual meeting of the Women in Farm Economics (WIFE) in Sioux Falls at the Ramkota on Saturday, Nov. 11 from noon-12:45 p.m. Johnson will discuss the upcoming reauthorization of the Farm Bill and the future of ethanol and alternative energy growth and development
Economist says some ethanol projections high
David Swenson, an associate scientist and lecturer in economics and community and regional planning, reports that some projections about the economic impact of ethanol are being inflated.

° Ethanol as a Biofuel, Information on
... economic and political arguments in favour of ethanol and methanol? The economic advantages are ... ... prices. Politics are intimately entwined with economics because politicians want to be elected or ...
http://www.envocare.com/ethanol.htm

° Ethanol Producers & Consumers breaking news
... different steps for different facilities. If you go too far, economics can be a problem." Instead of starting with the value of Ethanol, Madson reminded conference participants to start with the ...
http://www.ethanolmt.org/php/breakingnews.php

° The Economics of Ethanol
... Yes No Don't Know [ Results | Polls ] Votes: 200 Comments: 2 The Economics of Ethanol The conversion of corn into ethanol to produce gasohol (a gasoline-ethanol mixture) is touted by some scientists ...
http://greennature.com/article643.html

° Economics Of Hybrid Automobiles
... The Economics of Ethanol ... Hybrid Automobiles Inspire Long Wait Lists of Would-Be Buyers | American International Automobile Dealers | ... Hybrid Automobiles Inspire Long Wait Lists of Would-Be ...
http://www.riskmgmt.biz/m ...brid-automobiles.html

° Running on Empty: The Failure of Ethanol [Mackinac Center for Public Po...
... by either science or economics. The official effort to push ethanol has failed to live up to ... ... So if the science and economics of ethanol make no sense, doesn't the continued support for it by ...
http://www.mackinac.org/article.aspx?ID=3653

° http://agglossary.uaex.edu/viewEGlossary1.asp
... The ERS is divided into six divisions: commercial agriculture, food and consumer economics, information services, natural resources and environment, energy and new uses, and rural economy. See Also ...

° Archer Daniels Midland: A Case Study In Corporate Welfare
... Thanks to federal protection of the domestic sugar industry, ethanol subsidies, subsidized grain exports, and various other programs, ADM has cost the American economy billions of dollars since 1980 ...
http://www.cato.org/pubs/pas/pa-241.html

° taqdot: News for the open source and synthetic biology community
... dynamics of international security and economics. http://www.csis.org Massachusetts Institute ... ... 6:00 am ET -- Initial Applications to Focus on Ethanol and Hydrogen Production -- ROCKVILLE, Md ...
http://taqdot.org/

° RFA - Media Center - RFA Press Releases - 2005 Archive - Ethanol Industry Se...
... U.S. International Trade Commission ^ Jim Jordan and Associates Despite unprecedented favorable blending economics, ethanol demand fell again in April, stated RFA President Bob Dinneen. At a time when ...
http://www.ethanolrfa.org .../2005/view.php?id=239

° Sustainable Food and Farming
... Biomass Energy Efficiency Biodiesel Ethanol Planning & Applications Research Introduction ... ... new and existing rural policies using economics and market research disciplines Undertaking ...
http://www.adas.co.uk/business/foodandfarming.html

° Audubon: Incite
... But maybe the most convincing statement about the economics of ethanol comes not from any scientist but from the stock market, which clearly perceives that what is really being protected by this ...
http://magazine.audubon.org/incite/incite0408.html

° Philippine Fuel Ethanol Alliance
... Despite unprecedented favorable blending economics, ethanol demand fell again in April,Ã® stated RFA President Bob Dinneen. Ã¬At a time when ethanol prices are falling and petroleum prices are setting ...
http://www.bioethanol.com ...ews/2005_06_june.html

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