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I have been a scientist in the field of the earth and environmental sciences for 33 years, specializing in geologic disposal of nuclear waste, energy-related research, subsurface transport and environmental clean-up of heavy metals. I consult on strategic planning for the DOE, EPA/State environmental agencies, and industry including companies that own nuclear, hydro, wind farms, large solar arrays, coal and gas plants. I also consult for EPA/State environmental agencies and industry on clean-up of heavy metals from soil and water. For over 20 years I have been a member of Sierra Club, Greenpeace, the NRDC, the Environmental Defense Fund and many others, as well as professional societies including the America Nuclear Society, the American Chemical Society and the American Association of Petroleum Geologists.

Contact James Conca

The author is a Forbes contributor. The opinions expressed are those of the writer.

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Energy 273,488 views

It's Final -- Corn Ethanol Is Of No Use

OK, can we please stop pretending biofuel made from corn is helping the planet and the environment? The United Nations Intergovernmental Panel on Climate Change released two of its Working Group reports at the end of last month (WGI and WGIII), and their short discussion of biofuels has ignited a fierce debate as to whether they’re of any environmental benefit at all.

The IPCC was quite diplomatic in its discussion, saying “Biofuels have direct, fuel‐cycle GHG emissions that are typically 30–90% lower than those for gasoline or diesel fuels. However, since for some biofuels indirect emissions—including from land use change—can lead to greater total emissions than when using petroleum products, policy support needs to be considered on a case by case basis” (IPCC 2014 Chapter 8).

In 2013 the U.S. used 4.7 billion bushels of corn (40% of the harvest) to produce over 13 billion gallons of ethanol fuel. The grain required to fill a single 25-gal gas tank with ethanol can feed one person for a year, so the amount of corn used to make that 13 billion gallons of ethanol did not feed the almost 500 million people it was feeding fifteen years ago. This is the population of the entire Western Hemisphere outside of the United States. Some estimate that 30 million people are actually starving as a direct result of biofuel production (The Telegraph). Source: YES! Magazine

In 2013 the U.S. used 4.7 billion bushels of corn (40% of the harvest) to produce over 13 billion gallons of ethanol fuel. Source: YES! Magazine

The summary in the new report also states, “Increasing bioenergy crop cultivation poses risks to ecosystems and biodiversity” (WGIII).

The report lists many potential negative risks of development, such as direct conflicts between land for fuels and land for food, other land-use changes, water scarcity, loss of biodiversity and nitrogen pollution through the excessive use of fertilizers (Scientific American).

The International Institute for Sustainable Development was not so diplomatic, and estimates that the CO2 and climate benefits from replacing petroleum fuels with biofuels like ethanol are basically zero (IISD). They claim that it would be almost 100 times more effective, and much less costly, to significantly reduce vehicle emissions through more stringent standards, and to increase CAFE standards on all cars and light trucks to over 40 miles per gallon as was done in Japan just a few years ago.

With more than 60 nations having biofuel mandates, the competition between ethanol and food has become a moral issue. Groups like Oxfam and the Environmental Working Group oppose biofuels because they push up food prices and disproportionately affect the poor.

Most importantly, the new IPCC report is a complete about-face for the UN’s Panel. Its 2007 report was broadly condemned by some environmentalists for giving the green light to large-scale biofuel production, resulting in environmental and food supply problems.

The general discussion on biofuels has changed over the last few years. In December, Senators Feinstein (D-CA) and Coburn (R-OK) introduced a bill that would eliminate the corn ethanol mandate within the Federal Renewable Fuel Standard (Oil&Gas Journal) that requires blending ethanol into gasoline at increasing levels over the next decade. It was met with stiff opposition from heavily agricultural states, but had strong support from the petroleum industry. However, now that the tax credit and import tariffs have expired and ethanol is holding its own economically, it remains to be seen if the industry can stand up to this pressure.

So where is the U.S. today in corn ethanol space?

In 2000, over 90% of the U.S. corn crop went to feed people and livestock, many in undeveloped countries, with less than 5% used to produce ethanol. In 2013, however, 40% went to produce ethanol, 45% was used to feed livestock, and only 15% was used for food and beverage (AgMRC).

The United States will use over 130 billion gallons of gasoline this year, and over 50 billion gallons of diesel. On average, one bushel of corn can be used to produce just under three gallons of ethanol. If all of the present production of corn in the U.S. were converted into ethanol, it would only displace 25% of that 130 billion.

But it would completely disrupt food supplies, livestock feed, and many poor economies in the Western Hemisphere because the U.S. produces 40% of the world’s corn. Seventy percent of all corn imports worldwide come from the U.S. Simply implementing mandatory vehicle fuel efficiencies of 40 mpg would accomplish much more, much faster, with no collateral damage.

In 2014, the U.S. will use almost 5 billion bushels of corn to produce over 13 billion gallons of ethanol fuel. The grain required to fill a 25-gallon gas tank with ethanol can feed one person for a year, so the amount of corn used to make that 13 billion gallons of ethanol will not feed the almost 500 million people it was feeding in 2000. This is the entire population of the Western Hemisphere outside of the United States.

In 2007, the global price of corn doubled as a result of an explosion in ethanol production in the U.S. Because corn is the most common animal feed and has many other uses in the food industry, the price of milk, cheese, eggs, meat, corn-based sweeteners and cereals increased as well.  World grain reserves dwindled to less than two months, the lowest level in over 30 years.

Additional unintended effects from the increase in ethanol production include the dramatic rise in land rents, the increase in natural gas and chemicals used for fertilizers, over-pumping of aquifers like the Ogallala that serve many mid-western states, clear-cutting forests to plant fuel crops, and the revival of destructive practices such as edge tillage. Edge tillage is planting right up to the edge of the field thereby removing protective bordering lands and increasing soil erosion, chemical runoff and other problems. It took us 40 years to end edge tillage in this country, and overnight ethanol brought it back with a vengeance.

Most fuel crops, such as sugar cane, have problems similar to corn. Because Brazil relied heavily on imported oil for transportation, but can attain high yields from crops in their tropical climate, the government developed the largest fuel ethanol program in the world in the 1990s based on sugar cane and soybeans.

Unfortunately, Brazil is clear-cutting almost a million acres of tropical forest per year to produce biofuel from these crops, and shipping much of the fuel all the way to Europe. The net effect is about 50% more carbon emitted by using these biofuels than using petroleum fuels (Eric Holt-Giménez, The Politics of Food). These unintended effects are why energy policy and development must proceed holistically, considering all effects on global environments and economies.

So why have we pushed corn ethanol so heavily here in the U.S.? Primarily because it was the only crop that had the existing infrastructure to easily modify for this purpose, especially when initially incentivized with tax credits, subsidies and import tariffs. Production, transportation and fermentation could be adapted quickly by the corn industry, unlike any other crop.

We should remember that humans originally switched from biomass to fossil fuels because biomass was so inefficient, and took so much energy and space to produce.  So far technology has not reversed these problems sufficiently to make widespread use beneficial.

What else can we use to produce biofuel?

Like Switchgrass, Napier grass (shown here growing in Alabama) is a more environmentally friendly source for ethanol than corn, with a higher energy density.  Source: NREL, Warren Gretz (David Bransby shown)

Like Switchgrass, Napier grass (shown here growing in Alabama) is a more environmentally friendly source for ethanol than corn, with a higher energy density. Source: NREL, Warren Gretz (David Bransby shown)

Two leading strategies involve ethanol production from the degradation of cellulosics, and biodiesel production from algae.

The common alcohol, ethanol, has been harnessed by humans for millennia, made through the microbial conversion of biomass materials, typically sugars, through fermentation. The process starts with a solution of fermentable sugars, fermented to ethanol by microbes, and then the ethanol is separated and purified by distillation.

Fermentation involves microorganisms, typically yeasts, that evolved billions of years ago before Earth’s atmosphere contained oxygen, to use sugars for food and in the process produced ethanol, CO2 and other byproducts:

(sugar) C6H12O6  →  2 CH3CH2OH + 2 CO2   (ethanol + carbon dioxide)

Microorganisms typically use 6-carbon sugars and their precursors, glucose and sucrose. But because sugars and starches are foods, a better alternative for ethanol production should be from non-food cellulosic materials, such as paper, cardboard, wood, and other fibrous plant material. Switchgrass and napier grass have been studied extensively as the best alternatives.

Cellulosics are abundant and much of the supply is considered waste. Cellulosics are comprised of lignin, hemicellulose, and cellulose. Lignin provides structural support for the plant and encloses the cellulose and hemicellulose molecules, making it more difficult to process for fuel.

Thus, efficiently making ethanol out of cellulosics requires a different approach than for corn.  They can either be reacted with acid (sulfuric is most common), degraded using enzymes produced from microbes, or heated to a gas and reacted with chemical catalysts (thermo-chemical). Each has its variations, some can be combined, and all are attempting to be commercialized. Still, these processes are stuck at about twice the price per gallon produced compared to corn. Recently, special microorganisms have been genetically engineered to ferment these materials into ethanol with relatively high efficiency.

It’s no wonder we just went with corn!

Another less discussed biofuel strategy is biodiesel replacing petroleum diesel. Biodiesel is made by combining almost any oil or fat with an alcohol such as ethanol or methanol.

Biodiesel can be run in any diesel engine without modification and produces less toxic emissions and particulates than petroleum diesel.  It causes less wear and tear on engines, and increases lubricity and engine efficiency, and releases about 60% less CO2 emissions than petroleum diesel.

Rudolf Diesel originally developed the diesel engine to run on diesel from food oils such as peanut and soybean, but animal fats and any other natural oil can be used.  However, almost a hundred years ago, the need for fuel outstripped the supply of natural oils and petroleum become the only abundant source available.

Making biodiesel from any oil is relatively easy. The trick is to find a good source of bio-oil, like fast-food restaurants, or algae. Source: CEHMM, Carlsbad NM

Making biodiesel from any oil is relatively easy. The trick is to find a good source of bio-oil, like fast-food restaurants, or algae. Source: CEHMM, Carlsbad NM

The most common natural oils used are rapeseed and canola oil, but a particularly promising candidate is oil from algae. Algae production uses non-productive land and brine water and produces over 20 times the oil production of any food crop. An acre of algae can produce almost 5,000 gallons of biodiesel. It does not compete with food crops for arable land or potable water and could produce over 60 billion gallons/yr that would replace all petroleum-based diesel in the U.S.

However, all algae production facilities presently sell their crops to the food and cosmetic industry at a much greater profit than they would get from the fuel industry.

I guess for biofuels, as for any other source, there’s just no such thing as a free lunch.

[Note: Thanks to Eric and other commenters for pointing out some errors, especially my failing to mention the tax credits and tariffs have expired]

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  • Victor Rojo Victor Rojo 6 months ago

    This column starts out with a Big Lie from the Big Oil propaganda machine. Do your research, Mr. Conca. Ethanol does not get “huge subsidies.”

  • James Conca James Conca, Contributor 6 months ago

    Well, I guess huge is subjective, but Congress created a tax credit for ethanol use in the Energy Tax Act of 1978 whereby fuel blenders received $0.40 for each gallon of ethanol blended with gasoline. The credit’s successor, the $0.51 per gallon Volumetric Ethanol Excise Tax Credit (VEETC), was enacted in 2004 and reduced to $0.45 per gallon in the 2008 farm bill. This does not include the tariff barrier for imports or the mandates which are the real subsidy.

  • Eric McAfee Eric McAfee 6 months ago

    James, thank you for your interest in cleaner, more sustainable fuels and chemicals. The oil industry currently benefits from a 90% gasoline mandate in the US (the artificial “Blend Wall” created by the oil industry due to an unwillingness to invest in biofuel blender pumps at retail gas stations). Your diligent efforts to break the 90% crude oil gasoline mandate in favor of renewable, 113 octane, high oxygen, cleaner, domestic, job-creating fuels are to be encouraged!

    Due to your scientific background and experience cleaning up hazardous waste sites, you are probably aware that corn is not a single molecule or material. Rather, corn is comprised of about 72% starch, which converts to sugar in the body of an animal. The other 28% of a corn kernel is primarily protein, corn oil and fiber, which are the valuable “distillers grain” components of animal feed extracted from the corn kernel by an ethanol plant.

    The enzymes in ethanol plants convert the 72% starch from corn kernels into sugar, which is fed to yeast in order to produce ethanol. So, ethanol plants are “waste processing facilities”, since none of the valuable corn proteins, oils or fibers are converted to ethanol.

    Instead, ethanol plants extract the 72% of lower-value, starch “waste” from the corn kernel and produce a concentrated, high-value, Distillers Grain animal feed from the remaining 28% of the corn kernel. Since this concentrated animal feed is able to be fed without the 72% starch “waste” material, it is more valuable per ton than corn: especially to China and the other 80 countries that purchase Distillers Grain from the US to feed animals at a lower cost (including import tariffs) than purchasing and transporting whole corn with 72% starch from the US.

    To update you on recent developments in the biofuels industry during the past three years, the $0.45 per gallon VEETC (known as the Blender’s Tax Credit since it was paid to oil companies and not to farmers or ethanol plants) was terminated by Congress in December 2011, along with the $0.54 per gallon tariff that protected US ethanol producers from heavily subsidized Brazilian sugarcane ethanol. You are probably aware that commencing January 1, 2012 the ethanol industry received no subsidies at all from the federal government on a per-gallon basis.

    Since you have an interest in cleaner, less expensive fuels, you will be pleased to learn that biofuels have enabled the agricultural section in the US to no longer receive large farm subsidies that were required prior to the use of ethanol as a vehicle fuel. These USDA and other subsidies paid farmers NOT to grow corn – known as the Set-Aside Program – at a cost to taxpayers (the same people that buy food) of up to $5 billion per year. Due to the economic viability of corn production as a direct result of ethanol produced by waste processing facilities known as ethanol plants, farmers no longer qualify for billions of dollars of annual subsidies to not produce corn.

    Ethanol is 113 octane and about 30% oxygen, allowing the lower quality 82 octane gasoline now being produced by oil refiners to meet fuel performance and federal air quality requirements. Oxygen makes crude oil gasoline burn cleaner. Without ethanol, the average gasoline currently produced in the US would not able to be legally sold as a vehicle fuel.

    Increased octane is virtually certain in the future in order to comply with fuel economy laws. Your fuels and chemicals experience most certainly includes an understanding of the role of octane as an ignition inhibitor to allow engines to produce more energy from a gallon of fuel at high pressures caused by turbocharging smaller engines. Indy race cars run on 100% ethanol and NASCAR uses 15% ethanol in order to achieve higher mileage and more horsepower by utilizing the 113 octane in ethanol.

    In 2013, the EPA stated that it would no longer accept engine tests that did not contain at least 15% ethanol in the test fuel, and the EPA sought engine manufacture standards for testing 30% ethanol. Why? The EPA stated that the 54 miles per gallon CAFE fuel efficiency standard would not be achievable in a gasoline engine without a 30% blend of the 113 high octane provided by ethanol. It looks like future engines will be closer to the 113 octane ethanol in Indy cars than the poor quality “bunker fuel” often used in the large engines of oceangoing ships.

    Lastly, any commentary claiming “harm” by corn farmers or the use of ethanol or any other biofuel should consider that every gallon of biofuel displaces a portion of the $1 billion per day of US investment capital that is exported to purchase foreign crude oil. This is the equity for the growth of the US economy, being spent on the purchase of a consumption item, not a capital investment in future productivity. The economic “multiplier effect” is enjoyed by OPEC and other foreign crude oil producing countries, not the US. Simply noting the location of the multiplier effect is being transferred to US workers should be sufficient for the amateur economist to understand a basic cost of imported crude oil: a $1 billion daily economic drain on the US economy.

    Since you have read this far, please consider any future articles about biofuels to be a comparison with the economic, environmental and social impacts of the mandated fuel that we are currently mandated to purchase by the monopoly that controls the fuel retail outlets in the US: the crude oil industry.

    In the future, please compare the biofuels industry to the oil and gas industry, which receives more than $100 billion per year of direct cash subsidy from the US taxpayer: 1) 100% tax-free earnings using Master Limited Partnerships to own facilities and pipelines (MLP’s are illegal to use for biofuels facilities); 2) accelerated tax write-offs for well drilling (illegal for corn farmers and ethanol plants); and 3) more than $100 billion per year of military protection for shipping lanes and foreign oil fields.

    Our generation has a burden to undertake the technology innovation, investment and operational management to provide renewable, sustainable alternatives to the dwindling crude oil reserves that are increasingly expensive and environmentally damaging to produce. Whether your view of Peak Oil is that 2006 was the high point for oil production, or whether you are bullish on tracking, Canadian tar sands and offshore drilling, the future of oil production is significantly higher costs of production.

    A quick look at the stock prices and quarterly earnings of Green Plains, Pacific Ethanol and others will show that biofuels production is financially sustainable. Using sunlight to grow a crop, then removing the waste starch to produce a 113 octane oxygenate called ethanol and selling higher value protein/oil/fiber animal food is a less expensive way to produce fuel.

    As a biofuels CEO recently stated: Ethanol is the least expensive molecule in the fuel tank, and a lot of domestic and foreign consumers want to buy it.

  • Roger Pyle Roger Pyle 6 months ago

    I agree with much of what you say, with the exception that distributions from MLPs are not “100% tax free.” They are tax-deferred, which means when you sell the units, the cost basis has been reduced by the amount of distributions received during ownership.

    Also, legislation has been introduced to allow biofuel (and other renewables) to be eligible for MLP status.

  • Dan Mc Dan Mc 6 months ago

    James Conca ..you dont even know the BASICS..

    There is no VEETC.. None, Not a ..that expired in 2011

    There are no “Tariffs” None Not also expired

    And enough of this nonsense..” I quote you”

    “If all of the present production of corn in the U.S. were converted into ethanol, it would only displace 25% of that 130 billion.”

    Here is the problem with such a non nonsensical statement.. Corn Ethanol is only allowed by LAW to make 15 Billion Gallons of Ethanol per year.. per the Renewable Fule Standards of the Energy and Security Act .. signed into law by BOTH sides of the aisle.

    You look very nice in your $2k dollar suit but you don’t know squat about even the basics of the Ethanol Industry

  • Tim Gibson Tim Gibson 6 months ago

    Who better to fight big farm than big oil. I’ll bet you’re making money off ethanol. But if you’re a follower of 0bama then you’ll lie like him and say no. Then you’ll open your textbook and pretend to teach me something.

  • James Conca James Conca, Contributor 6 months ago

    Eric, thank you for a brilliant response! Yes, next post on this subject I need to talk to you in detail (are you on LinkedIn?). I agree with you on Oil&Gas getting more subsidies than anything else, and controlling the system almost completely. Always has and I’m afraid they always will. For some reason, many readers think I’m pro-oil or in the fossil fuel business, which I’m not at all, and except for an internship at EPR in 1982 working on the geochemical role of secondary chlorite replacement of primary grains in the Tuscaloosa Trend, have never worked for any of them. I like your breakdown of the compounds and their uses and did not know that China was importing so much Distillers Grain, that’s wonderful and does change the economics. And thank you for pointing out the taxes and tariffs have expired. H ow has this changed the competition from Brazilian ethanol? It is great that the ethanol industry has reduced the Set-Aside programs with respect to corn. Has the oil industry purposefully lowered their octane to take advantage of ethanol’s higher rating? Why do we hear that ethanol provides lower power than petrol if NASCAR uses it to boost horsepower? That would be a myth to bust as it is rampant in the media. I agree on the foreign crude, we need to get away from it completely and can with a combination of NA crude and biofuels. Ths has been one of the issues with Keystone. If it’s mostly going overseas, it’s not worth the liability, but if most of it does stay on the Continent, then it could help wean us off imports. Unfortunately, I think most will be exported. But In the end, I think we need to proceed fulll-steam on all fronts, including biofuels, and that all technologies should be supported thoroughly. You may have read my overall energy mix for 2040, a third fossil, a third renewables and a third nuclear, that has a third of transport energy from biofuels and a third from electric vehicles (supplied from the all electricity generating system such as nuclear, solar, wind and gas (with whatever remaining coal exists) and reducing petroleum to a third of what they are now. This will be difficult without a significant change in the Oil&Gas industry and a more level playing field for alternatives. Thanks! – Jim

  • James Conca James Conca, Contributor 6 months ago

    Yes, they have expired. The 15 billion gallons per year is law now, but will increase, and is set to increase dramatically over the next 30 years. No other way to meet the renewables targets of mid-century. that’s fine, just of it’s done well.
    $2k suit? That’s funny. Why do you think I’ve ever worked for Oil&Gas? I’ve been in academia and the National Lab system most of my career. If I’d ever worked for Oil&Gas, I might have made some real money.

  • James Conca James Conca, Contributor 6 months ago

    Hi everyone, I really appreciate this stimulating and quite excellent discussion and pointing out my errors I will fix those. It is imperative that we as a Nation get this right or we will remain dominated by fossil fuel for the next century.

  • Ron Amundson Ron Amundson 6 months ago

    The energy content of ethanol is drastically lower than gasoline, but its much higher octane rating allows one to design a very efficient engine that more than compensates for the loss in energy density. However, like most things there are tradeoffs. A very high compression, high efficiency engine taking advantage of ethanol’s higher octane will cost a small fortune, will have a shorter life span, and will be destroyed should it accidentally be fed with gasoline. Pretty much one would need to commercialize a form of racing engines… and just like passenger car diesel got a bad name decades ago, so would ethanol until the bugs are worked out.