Bioethanol – a positive contribution to the American economy

“I thank the industry on behalf of consumers because we’re playing less at the pump because of what you do,” Tom Vilsack said.

Vilsack, a former governor of Iowa and longtime ethanol advocate, also thanked the industry for providing jobs, contributing to record farm income and a trade surplus in the past year. 

He encouraged the ethanol industry to work at educating the American public about the contribution of renewable fuels to the nation’s economy, as well as the importance of agriculture’s contribution overall. “It is important for us to market this,” he said. “98 percent of America does not farm and are generations removed from the farm.”

The nation’s food security is among the underappreciated contributions of American agriculture, he said. “We may be the only country in the world that can say this. We have the capacity to feed ourselves. We don’t have to import anything to survive. That’s an enormous thing we take for granted.” U.S. consumers also spend less for food than other nations—less than 10 % of our incomes compared to 20 to 30 % in other developed nations and 50 to 75 % in developing nations.

Ethanol’s contribution to the nation’s energy security in unappreciated as well, he said. “We have moved from importing 62 % of our fuel to 50 % and we need to continue to move in that direction.” 

He outlined the programs in place within the USDA to support the continued growth of renewable energy, including five virtual research centers connecting USDA research capability with universities and the private sector on production systems and feedstock development. The USDA has issued five loan guarantees for advanced biofuel projects, and expects that between eight and nine will be approved by the end of the process. Working in cooperation with U.S. DOE and the Navy and the USDA a program is in place to advance drop-in aviation fuels. The program includes a Navy precontract for supplies from the biorefinery, meeting one the requirements to get private investment and lenders involved.

Among the work to be done is to implement E15 and ensuring the renewable fuel standard stays in place. “Make no mistake,” Vilsack cautioned. “Just because it’s in the law, it doesn’t mean it will stay in the law.”

Read the entire article at ethanolproducer.com.