Home / News / Policy news / Corn ethanol competitive, growing overseas

Corn ethanol competitive, growing overseas

DANIEL LOOKER Updated: 01/27/2014 @ 2:45pm Business Editor

Corn ethanol production is taking place in Argentina and, soon, in Brazil, a sign that the industry can compete with sugarcane ethanol in South America, and that it's economically competitive, according to Bruce Rastetter, an agricultural entrepreneur and president of the Iowa Board of Regents.

"The reality is that when we have $100-a-barrel oil, it just makes sense to blend ethanol," Rastetter told attendees of the Land Investment Expo in West Des Moines, Friday.

Rastetter is CEO of the Summit Group, a diversified agribusiness with a farming operation headquartered in northern Iowa. He's also on the board of Advanced BioEnergy, a 50-million-gallon ethanol plant in South Dakota.

"I would suggest to you that the golden age of agriculture would not be here if it wasn't for ethanol," he said of production in the U.S. "Irrespective of the debate over the ethanol mandate, ethanol margins are off to a good start in 2014."

In response to a question, Rastetter said that Argentina has a couple of ethanol plants and that Brazil will soon, and it will be competitive with sugarcane ethanol.

Rastetter, who was also an early supporter of the ethanol lobbying group, Growth Energy, said he doesn't know what the EPA will do about its proposal to reduce the renewable fuel standard for 2014.

"It just doesn't make sense to step back. It's not a government subsidy," he told Agriculture.com in an interview after his talk at the Land Investment Expo.

Continuing to ramp up the RFS would create opportunities to move from E10 to E15, he said. "We can do it cost effectively," he said.

The RFS is more about ensuring access to the U.S. fuel market, he said, when the oil companies have, in effect, a mandate to supply gasoline in 90% of fuel containing 10% ethanol.

"The oil companies have a reverse mandate because they make more by refining oil than they do blending ethanol," he said.

In Brazil, where blender pumps are common, consumers have a choice to buy between 10% and 90% ethanol, he said. "When you go to the pump, it gives you a choice."

CancelPost Comment

Ethanol blends 01/28/2014 @ 3:04am Opportunity to use alcohol as a source of mechanisms, in mix with gasoline or other fuel is possible. Bioethanol dispersing is the most widespread alcohol which can be used by various devices as fuel. It is not a secret that rational designing of thermo stable enzymes (capable to work with high activity at temperatures 100ос and higher) for modern industrial reactors has huge practical value. For example, biotechnological production of bioethanol using thermo stable enzymes and its use as fuel in the form of 10-20% as additive in gasoline was widely adopted in many countries. Ethanol value as motor fuel is caused by that is cheap, safe and easily transported liquid, calorific ability of ethanol makes about 70% of calorific ability of gasoline. Ethanol increases octane number of the gasoline which isn’t containing ecologically harmful tetra ethyl lead.

Report Abuse Reply

Re: Re: Ethanol blends 01/28/2014 @ 3:05am Globecore blending is intended in production of ethanol blending systems... www.globecoreblending.com

Report Abuse

Be on the Lookout for Pricing Windows This… By: 11/25/2015 @ 8:48am You can’t take this winter off from marketing. Whether you have complex blended options…

World's Largest Cellulosic Ethanol… By: 11/19/2015 @ 4:03pm Near Nevada, Iowa, workers hurry to bring the world’s largest cellulosic ethanol plant online…

Don't Let Saving on Seed Blind You From… By: 11/05/2015 @ 3:36pm Norm Husa could be at the right place at the right time. The Barneston, Nebraska, farmer and seed…

This container should display a .swf file. If not, you may need to upgrade your Flash player.
Successful Marketing Newsletter