Searching for Alternative Fuels - Ethanol?

Ethanol fuel is an alternative to gasoline, and it reduces greenhouse gases up to 35% compared to gasoline. In 2005 Congress passed The National Energy Bill, requiring gasoline refiners to purchase a minimum of 7.5 billion gallons of ethanol in 2012. The annual demand for the alternative fuel has doubled the last four years to an estimated 4.5 billion gallons in 2006. Pacific Ethanol Inc. owns and operates the largest ethanol plant on the West Coast. The company plans to build five grain ethanol facilities in California, expanding their capacity over 450 million gallons in the next four years. Pacific Ethanol's goal is to become the leading producer in renewable fuels in the Western United States. The company currently has plants in Madera, California and Boardman, Oregon and plans to produce three more plants because of the rising demand for ethanol.

Pacific Ethanol focuses on the production and sale of alternative fuels and their byproducts. Ethanol derived from corn is their main focus of fuel production. By-products of ethanol production include high protein wet distillers grain and carbon dioxide. After the ethanol is extracted from corn, the remains are turned into wet distillers grain, a very nutritious cattle feed. They are then shipped quickly and cheaply to local dairies, while Midwest producers must first dry their distillers grain, resulting in higher costs and lower quality. Most ethanol producers release their carbon dioxide into the air, while Pacific Ethanol collects the CO2 and sells it to the food and beverage industry.

With the many ethanol-compatible automobiles, there is an attractive market for ethanol. Over six million flexible fuel cars on the road run on a blend of gasoline and ethanol. With the limited oil supplies and refining capacity, there is a positive market outlook for the alternative fuel. Ethanol can be produced from corn, wheat, corn stalks, rice straw, sugar cane, and other wastes. These new developments allow for tremendous economic growth and job opportunities.

Ethanol is an elastic product as there are many substitutes for the alternative fuel. Other renewable fuels include gasoline, biodiesel, electricity, hydrogen, methanol, and natural gas. Because of the many other alternative fuels, ethanol is elastic. Many individuals choose gasoline over ethanol, as it is more accessible and more efficient. However, as oil prices continue to rise, consumers may think differently. Ethanol companies will continue to develop alternative ways of production. Ethanol is being made from new things each day, and researchers will only learn more about the fuel as time goes on.