21st Century Fuel Source
Government Backs Biofuels, Business Waits to See
The President of the United States and the nation's leading car manufacturers expect biofuels to replace petroleum in the 21st century.
Government encouragement and major corporate finance is necessary to make the high-tech, biofuel experiment a successful venture. The promise of an environmentally friendly propellant that also alleviates U.S. dependency on foreign petroleum is a must-win proposition. The research and development to convert starchy food products into an efficient, affordable fuel supply is essential to meet the growing demands of a global economy.
Oil prices have hovered around $70 a barrel for an extended time, and the United States is currently importing 60% of all the oil it uses. It is imperative that this country become more self-sufficient fulfilling its energy needs. Conservation is an obvious tactic, but the growing demand for the world’s limited oil resources from developing countries such as China and India render that strategy minimally effective.
There are many questions regarding the comparative expense of biofuel production versus the spiraling gasoline prices staggering today’s drivers. There is also concern about the cost ratio of production of the new fuel. One argumentative viewpoint states the energy necessary to create a gallon of biofuel exceeds the output of that gallon. Mass production is a long way from reality and there are obviously numerous kinks in development to be resolved.
Ethanol, a by-product of corn and grain distillation, is a fuel additive that has been used in the mixture of gasoline since the 1970s. The benefits of this supplement include a cleaner burning fuel that releases fewer pollutants into the air. The latest product to enter the U.S. market is E85, a blend that uses 85% ethanol and only 15% petroleum, but requires a special flexi-fuel engine to operate. Car manufacturers are gradually adding these adaptive engines to their vehicles to meet demand. Presently less than 3% of U.S. cars are equipped to run on E85.
There is some concern that the big oil companies have a stranglehold on the distribution of anything in which they do not have an interest. The recent record setting profits of the Exxon Corporation suggest a rocky road to market for an alternate fuel source. A multi-corporate effort involving big oil, major automotives, and the government is required for a smooth shift from the standard commodity to a new alternative.
The United States government is one of ethanol’s biggest supporters, granting subsidies to offset development costs in the industry. Tariff and duty levies on cheaper ethanol imports from Brazil are in place to encourage business growth in this country. A $30,000 tax credit is available to assist service stations in upgrading their facilities to deliver the latest 85% ethanol fuel mix. Currently less than 1% of the service stations across the country offer the upgraded product.
Corn-based ethanol is just one source of many in the biofuel family. There is hope that technology will expand processing to the stalks and husks of the plant, yielding greater return per acre of cropland. Research focusing on switch grass, methane, citrus fruits, and used vegetable oil is also underway.
