Page B—Com Talk, Lancaster Farming, Saturday, February 11,1995 Ethanol WASHINGTON, D.C.—To most Americans, the 1950’s in Southern California meant sun, surf, and the Beach Boys. But to the teenaged Neale Shaner, who lived there during the school year, it meant smog. “Some days, the smog was so bad, we’d be kept inside dur ing phys. ed. class. I couldn’t wait for the end of school, to return to Nebraska, where my grandfather had his farm, and get away from all that contami nated air,” he said. Today, Shaner spends his working days on that same farm in Fort Calhoun, Neb. the one his family has owned for more than 100 years. “It’s a challenge, being a farmer,” he said. “There’s the outdoors...working on your own...having the chance to appreciate nature...! can’t think of anything more satisfying than looking out and seeing a field of com or soybean grow ing that you’re responsible for. “As a boy, I liked the idea of being part of the industry that produced the food Americans eat. I never thought, though, back then, that the com I was growing would also help clean up the air we breathe.” Now, as gasoline refiners prepare for the introduction of the U.S. Environmental Protec tion Agency’s RFG (Reformu lated Gasoline) program in some four dozen metropolitan areas around the country, com stands to play a greater role than ever before in this coun try’s environmental efforts, due to the development of a product known as ETBE (ethyl tertiary butyl ether). ETBE is an oxygenate pro duced by combining corn derived ethanol with natural gas by-products. Blended with To Play Major Role gasoline, oxygenates increase the fuel’s oxygen content, which makes it burn more cleanly. This “cleaner bum” helps to reduce emissions of the harmful pollutants associat ed with conventional gasolines. Since all the oxygen in ETBE comes from ethanol, it takes the same amount of ethanol to “oxygenate” a gallon of gas with ETBE as it does using ethanol alone. However, when ethanol is blended into ETBE, some of its properties change. ETBE bums as cleanly as ethanol, but since it is a petroleum hybrid, it is 100 per cent compatible with gasoline —so, unlike ethanol, it can be transported via the pipeline systems that supply gasoline to much of the country. And instead of increasing gasoline’s evaporation rate —a character istic of ethanol that had limited its use ETBE reduces it. For American com farmers and ethanol producers, ETBE is the breakthrough they’ve been waiting for. Ever since 1979, when ethanol was first used to enhance octane and extend fuel supplies, farmers’ hopes for the corn-derived product have sprung eternal. However, ethanol’s chemical properties have limited its use to splash blending as gasohol. Wider dis tribution via the major pipeline system supplying suph fuel hungry gasoline markets as the Northeastern United States was prevented by ethanol’s affinity for water. Growth beyond local splash blending markets was further limited by increased restric tions on vapor pressure, includ ing stringent RFG criteria intended to reduce air pollution caused by evaporation as well as exhaust emissions. Since ethanol increases gasoline’s evaporation rate, it appeared that ethanol’s role could be fur ther diminished by RFG requirements. Yet paradoxical ly, corn farmers and ethanol producers now see that same low vapor pressure require ment as opening the way to new markets for ethanol. “ETBE is the key,” said Shaner, a former president of the Nebraska Ethanol Board. “Vapor pressure was a major hurdle to California and other warm weather markets. But now that ethanol can be used to create an oxygenate that actual ly lowers vapor pressure, those earlier restrictions on ethanol’s potential markets no longer exist. We now have an oxy genate that makes as much sense to refiners as it does to farmers.” According to Gary Gold berg, president of the American Com Growers Association, ETBE will allow farmers to more fully benefit from the EPA’s ROR (Renewable Oxy gen Requirement), which calls for 30 per cent of the oxy genates used in reformulated fuels to be derived from renew able feedstocks, such as com. “The figures we’ve looked at indicate a sizeable increase in the bushels of corn convert ed into ethanol. Right now, we’re only using about 400 million bushels a year—but we expect that to increase to about 750 million bushels to meet Ag-Chem Covers All Your Spraying Needs From Leinbach Farm Supply Shippensburg, PA 717-532-5511 1-800-346-2334 Webb’s Super-Gro Mill Hall, PA 717-726-425 €®IM TPMJK HIWS RFG provisions. And that’s because ETBE is the only oxy genate out there that can meet both vapor pressure and fuel renewability requirements.” But corn farmers and ethanol producers still have work to do before growing into these new markets, said Shan er. “There’s a big job to do in educating the public about ethanol and ETBE; you have to show people that the benefits are really there. And not just their environmental benefits, which have been demonstrated over and over again, but their positive impact on the farm economy, how they make our country more energy-self-suffi cient, and how they create more jobs.” One significant hurdle still to be overcome, said Goldberg, is the current federal income tax credit structure. “The prob lem of tax credits has to be addressed; the way the code is currently written, the only one who gets a tax break from using ETBE is the refiner who sells reformulated gasoline into the marketplace. While we support this credit, the fact is that the current tax status of many refiners will prevent them from taking advantage of it. Because of this, we feel that only the way to ensure that the tax code Parts to Short Lr Serving The Farming Industry For Over 31 Years. 1188 Enterprise Rd. East Petersburg, PA 17520 . '• CALL FOR MORE INFORMATION 2S£. h "IT 1 569-2610 SI Plant Food Co. Cranbury, NJ 609-448-0935 Stoltzfus Morgantown, PA 215-286-5146 Delmar Grain Delmar, DE 302-846-9567 supports the commercial via bility of ETBE is to broaden this tax credit to include ETBE producers. “It should be clear that the future of the ethanol industry lies in full commercialization of ETBE. Without that, we are looking at flat growth for the ethanol industry and for corn consumption for years to come. ETBE is the avenue to whole new markets and unprecedent ed growth. But we have to make sure that government, the public, and the media, and com farmers understand what is at stake. “Everybody benefits. Refin ers finally get a renewable oxy genate that they can blend at the refinery, ensuring greater quality control and efficien cies. Com and ethanol produc ers benefit from expanded mar kets, which in turn reduces the need for government subsidies to corn farmers —a benefit to taxpayers. And we all benefit from a cleaner environment. “The way I see it,” Goldberg said, “ETBE is the brass ring for which corn growers have been waiting for more than a decade. Right now, we have a simple choice: we can either grab this opportunity and make it work for us —or we can ignore it and let it pass us by.” Tri-County Farm & Home Bloomsburg, PA 717-437-3440 Smeltzer Equipment & Supply Pleasant Gap, PA 814-359-2544 Triple H Equip. Peach Bottom, PA 717-548-3775 Erb & Henry Equip. New Berlinville, PA 215-367-2169 Messick Farm Equip Elizabethtown, PA 717-653-8867