E-85+Economics

=Ethanol=

What is ethanol?
Ethanol is a liquid alcohol made of oxygen, hydrogen and carbon and is obtained from the fermentation of sugar or converted starch contained in grains and other agricultural or agri-forest feedstocks. In Canada, ethanol is presently made principally from corn and wheat. Ethanol can be produced for different applications, for example, industrial ethanol or fuel grade ethanol. Research into technology to produce ethanol from non-food sources is advancing rapidly and is close to commercialization. Fuel ethanol, which is sometimes referred to as "gasohol", has been distilled and dehydrated to create a high-octane, water-free alcohol. All water must be removed because a water-alcohol mixture cannot dissolve in gasoline. Fuel ethanol is made unfit for drinking by adding a small amount of a noxious substance such as gasoline. Ethanol is blended with gasoline to produce a fuel which has environmental advantages when compared with gasoline, and can be used in gasoline-powered vehicles manufactured since the 1980's. Most gasoline-powered vehicles can run on a blend consisting of gasoline and up to 10 percent ethanol, known as "E-10", which is available at some regular service stations across Canada. Some vehicles are specially manufactured to operate on an ethanol blend that contains up to 85 percent ethanol and at least 15 percent gasoline. (The 15 percent gasoline is needed to assist in engine starting because pure ethanol is difficult to ignite in cold weather.) This E-85 blend cannot be used in standard gasoline vehicles, however vehicles designed to run with a high ethanol blend can also operate using gasoline when necessary. E-85 is presently used by some organizations with large vehicle fleets, but it is not yet commercially available in Canada.

http://www.oee.nrcan.gc.ca/transportation/fuels/ethanol/video/ethanol_e.mov
 * Movie on ethanol fuel:**

can be thought of as coming from three components: 1. The energy value as a replacement for gasoline 2. The value of subsidies and policy incentives provided to ethanol, 3. The value of ethanol as an additive that is primarily an oxygenate (to produce cleaner burning fuel) and octane enhancer for gasoline.
 * The value of ethanol**

The energy value in a gallon of ethanol is less than in a gallon of gasoline. While exact difference in gas mileage will probably vary somewhat, it is expected that a gallon of ethanol will only do about 70% of the work of a gallon of gasoline. Therefore, we would expect the energy value of ethanol to be about 70% of the wholesale price of gasoline.
 * Energy Value**

Ethanol and the Economy
The development of a substantial ethanol industry in Canada would not only reduce our dependence on imported oil to manufacture gasoline, but would also mean new markets for Canadian farmers and forest companies, create construction and operating jobs at ethanol production plants and help strengthen and diversify rural economies. New technologies to produce ethanol from plant fibres could help to make ethanol cost-competitive with conventional fuels, leading to further industry expansion. In addition, promising Canadian technologies could lead to further economic growth opportunities in related biotechnology fields.

Government Support for Ethanol
At the federal level, the ethanol portion of blended gasoline receives an exemption from the federal excise tax of 10 cents per litre on gasoline. At the provincial level, the governments of Alberta and Ontario currently exempt the ethanol portion of blended gasoline from their road taxes, without restriction on the ethanol source or the content in ethanol. The governments of Saskatchewan and Manitoba offer an exemption from their road taxes for fuel ethanol produced and consumed in their respective provinces. The governments of British Columbia and Quebec have committed to exempt the ethanol portion of low-level ethanol blends from their road taxes when an ethanol plant is built in those respective provinces. British Columbia currently offers a road tax exemption on the ethanol portion of E-85. The Government of Canada and some provincial governments have also supported the development and use of ethanol fuel through research and development programs. As well, the Government of Canada and some provinces have ethanol-powered vehicles in their fleets for demonstration and public awareness purposes. Finally, as part of the //Government of Canada Action Plan 2000 on Climate Change// released in October 2000, the Government of Canada established the Future Fuels Initiative to increase the supply and use of ethanol produced from biomass, such as cellulosic plant fibre and grains. This initiative includes three main components: the renewal of the National Biomass Ethanol Program, which provides contingent loan guarantees to ethanol producers; funds for public awareness activities; and analysis and research. People in government love the idea of Ethanol, because it sounds like the perfect source of energy. To buy votes they say they support E-85 because it will help the farms, the environment, and is renewable. Meanwhile not mush is being done to bring E-85 stations nation wide.

The Future of Ethanol Fuel in Canada
Ethanol's future as a transportation fuel depends to some extent on how Canada and other nations address the challenge of controlling atmospheric emissions of carbon dioxide and other greenhouse gases. Another important factor will be our ability to produce ethanol at a cost that makes it economically attractive to consumers, relative improved production technology for ethanol and co-products from starch and cellulose-based feedstocks should help to make ethanol production more economical in the future. As well, significant changes will be needed in Canada's fuel distribution and dispensing infrastructure to accommodate high-level ethanol blends. Ultimately, competition between fuels in the marketplace and government policies will determine the role of ethanol as a transportation fuel.

Environmental Benefits of Ethanol
Ethanol can play a role in helping Canada to meet its climate change objectives. On a full cycle basis, the use of a litre of E-10 fuel instead of straight gasoline can reduce greenhouse gas emissions by 3 to 4 percent if ethanol is produced from grain, or 6 to 8 percent if it is produced from cellulose.Using E-85 fuel instead of straight gasoline can reduce net emissions by as much as 75 percent. The combination of ethanol and gasoline results in overall increases in smog-producing volatile organic compounds compared with either pure ethanol or pure gasoline. However, this can be overcome by blending ethanol with a gasoline that has been manufactured to have low volatility. A high-ethanol fuel such as E-85 also produces lower levels of nitrogen oxides and toxic hydrocarbons such as benzene (a carcinogen) than gasoline does. Although E-85 produces higher levels of formaldehyde and other toxic aldehydes, the resulting concentrations are small and are effectively removed by catalytic converters in recent-model cars.

Why is E85 gaining in popularity to the point that lines of vehicles are being developed that will run on it alone? Compare it to the properties of gasoline, and see for yourself:
 * E85 Properties**


 * 96 octane to 86-94 octane in gasoline
 * 12,500 lower heating value to 18,000-19,000 lower heating value of gasoline
 * 1.4 gallons of E85 is equal to 1 gallon gasoline
 * Per gallon, E85 gets 72% of the miles that gasoline gets
 * Holding tank is 1.4 times larger than a gasoline holding tank
 * In cold weather, E85 starts the car as well as gasoline
 * Vehicle power is increased 3-5% with E85

A flexible fuel vehicle is a car that runs on any ethanol blend, E85 or less, and can also run on regular unleaded gas. They have been in production for almost a decade and continue to be built by some major car manufacturers including Ford, GM, Isuzu, and more. Over 2 million of today's vehicles are flexible fuel vehicles, which can run on ethanol, gasoline, or a mixture of the two. You may own one of these FFV's without even being aware of it. Some of the benefits of flexible fuel vehicles include: Most cars, including hybrid cars have no problems with a 10 percent ethanol blend. However, at this time, the combination of E85 and the car is only slowly making its way from the drawing board to the highway. Some instances have occurred where the two have been combined, but these are primarily in fleet situations and concept cars so far. However, it shouldn't be too long before you can buy a hybrid car that will run on E85. Many of Dodge's new Grand Caravan's have engins that can run E-85.
 * Flexible Fuel Vehicles (FFV)**
 * Emissions that create smog are reduced 25 percent
 * Cost effectiveness is equal to that of cars run on gasoline
 * Similar warranties and original equipment are manufactured as they are for gasoline run vehicles
 * Emissions that create greenhouse gases are reduced 35 to 40 percent
 * Vehicle horsepower increased up to 5 percent
 * Fuel is renewable
 * can be ordered with a flexible fuel engine option
 * More and more E85 pumps are springing up all over the country
 * Gasoline can be mixed with any amount of E85 if E85 is not available

There are a few disadvantages to E85 at this point in the game, though they hardly outweigh the benefits. Some of these include: One present disadvantage that DOES outweigh the ecological value for the consumer is the scarcity of locations selling E85. This will probably continue to change over time however. For those in the military, there are some military bases where E85 can be found. Despite the limitations, ethanol based alternative fuels like E85 are an incredible improvement over the use of gasoline. Some manufacturers are offering to upgrade regular engines to E85 capability for no cost, and the fact that flexible fuel vehicles are not reliant upon E85 but can use gasoline in any combination with the ethanol blend makes it a simple choice. Scientists and researchers are working on ways to fix the remaining issues. This new technology is more than a trend but the direction in which the future is taking drivers.
 * Drawbacks of E85**
 * The cost of E85 is formidable due to the cost of the fermentation process but research has already begun to develop a new and cheaper fermentation process that utilizes lower-grade feed stocks.
 * Ethanol is quite a bit more corrosive than gasoline, which could lead to engine problems.
 * Issues of things like vapor lock, flame visibility, and cold starts have experts concerned.
 * The miles per gallon of E85 is less efficient than the miles per gallons of gasoline.
 * It's not easy to find E85 gasoline tanks because distribution is difficult.

As the demand for biofuels is in demand such as ethanol, is raising food prices and is actually damaging the environment. Economic co-operations believe that governments should stop subsidising corn based ethanol and to research more on advanced technologies. The Organization for Economic Co-operation and development (OCED) is a group of people questioning the expansion of biofuels. Canada’s Library of Parliament did a study on Ottawa’s investment in biofuel, and found that it will do a little to cut green house gas emissions. Also from the Food and Agriculture Organization said that since there is a high demand for biofuels it contributes to the inflation of food prices. Since most of the Western countries are subsidising biofuels, and trade barriers block them from importing certain materials from tropical regions where crops can be produced more efficiently. OECD’s incentives are to replace forests, wetlands and pasturelands with bio-energy. Although ethanol may produce lower level of greenhouse gases, the overall affect on the environment can easily exceed the limit of the petrol and mineral diesel. The biggest problem that the government has to face is the cost to invest in the fuel distribution. OECD thinks it is a waste of money and wants to spend it on technology. The director of public affairs for the Canadian Renewable Fuels Association disagrees with many points that the OCED is making. They said, “ Canada generates biofuels mainly from surplus grain and oil seeds. Citing evidence of significant environmental benefits from adding them to traditional gasoline”. Many businesses are working to try and make ethanol work from waste products. Some people will also disagree such as OCED and the farmers of course. Globe and Mail. –Wednesday September 12/07
 * Biofuel push damaging, disruptive, OED says,**

You must use 1.4 times as much E85 to be efficient as gasoline. This means that the price of ethanol must be 40% lower to make it viable. The price of ethanol has a little bit of breathing room due to its high-octane level meaning the price can be 30% less than gas and people will still buy it. This is hard to accomplish due to oil refiners buying ethanol in bulk. This lets them control supply and by due so they can indirectly control the price making ethanol never a truly viable fuel source till the oil refiners almost run out of oil. Gas stations can be easly converted into E-85 stations because they use the same kind of pump. Ethanol will also in crease prices of other agricultural goods because of farmers switching from what they are producing to producing corn. This means there will be decrees in supply of goods such as barley, which will increase the price of barley related products such as beer. Between the growing, cutting, and manufacturing corn it cost as much energy as it produces therefore it is not viable.
 * Costs involved with ethanol**

__**Videos**__ http://video.google.com/videoplay?docid=2225812680917774949&q=E85&total=433&start=10&num=10&so=0&type=search&plindex=4 http://video.google.com/videoplay?docid=2225812680917774949&q=E85&total=433&start=10&num=10&so=0&type=search&plindex=4

__**Sources**__ http://oee.nrcan.gc.ca/publications/infosource/pub/vehiclefuels/ethanol/M92_257_2003.cfm http://www.oee.nrcan.gc.ca/transportation/fuels/ethanol/ethanol.cfm http://greenfuelpower.blogspot.com/2006/05/ethanol-and-e85-fuels-of-future.html