Growth Energy The Truth About Ethanol Ethanol is a clean, renewable fuel that is good for both your car and the environment. Here are the facts. Myth: Ethanol can damage car engines. Myth: Ethanol is so corrosive it has to be delivered in stainless steel tanks. • E15 boosts engine performance, increases horsepower and runs cleaner through engine valves by removing deposits created by lower-quality gasoline. • Outlandish statements on the delivery mechanism for ethanol are not based on any factual evidence. • All fuels and chemicals should be transported through safe methods — the ethanol industry prides itself on maintaining high safety and transportation standards. • Modern day fuels contain waxy solvents that leave deposits that can reduce power and efficiency within 10,000 miles. Ethanol keeps engines cleaner by helping dissolve deposits in critical parts — like the pistons, fuel intake valves and ports. Myth: The government is pushing for increased ethanol usage for monetary reasons like fulfilling corn subsidies. Myth: Phase separation with ethanol results in engine damage. • The American ethanol industry is a critical component of our rural infrastructure and national economy. • Fuels containing ethanol are better able to prevent engine damage by assisting in absorbing water found in the fuel supply. »» The industry supports more than 400,000 domestic jobs and contributes more than $40 billion annually to the U.S. gross domestic product. »» Phase separation, a rare situation, can occur with any fuel using an oxygenator — including other petroleum products. The situation is dependent on a number of conditions, including temperature and moisture. • Ethanol has created a steady market for corn and other grains worldwide, which has increased the economic incentive to produce in the global agriculture market. • Gasoline by its nature is a lower octane fuel. In order to bring fuels into spec, oxygenators must be added to bring the octane level up to an acceptable range. »» Ethanol is the lowest cost oxygenator available and when added to gasoline it improves engine performance. It is used to replace some of the more expensive and carcinogenic gasoline components, such as aromatics like benzene, toluene and xylene. • E15 provides economic benefits across the board: »» Increases investment in our rural communities; lowers costs at the pump; and, helps reduce our dangerous — and expensive — dependence on foreign oil. Myth: Damage caused by ethanol can cost hundreds to thousands in engine repair. • Ethanol is a high-octane fuel, and substantially increases performance, durability and horsepower. Myth: The Government pushed for E15 without conducting proper testing. • E15 is the most tested fuel blend in history. • Repeated evaluative studies showed no statistically significant loss of vehicle performance (emissions, fuel economy, and maintenance issues) attributable to the use of E15 fuel in MY2001 and newer vehicles. • The cost-benefit analysis favors E15 – numerous studies show that ethanol saves consumers at the pump; increasing the blend to 15 percent further reduces prices. »» From 2007-11, ethanol blends were 15-75 cents cheaper per gallon on a yearly basis. »» In a specific study performed by the U.S. Department of Energy in conjunction with the U.S. Environmental Protection Agency, 86 vehicles, representing all makes and models, were driven more than 6 million miles on E15 with zero issues. updated January 25, 2013 2:59 PM find us online at GrowthEnergy.org Growth Energy Myth: Ethanol increases the price of food. »» Distillers grains, a high-protein livestock feed, are created as co-product when ethanol is made. • The price of food is driven up by transportation, and packaging. »» More than one-third of the corn used in ethanol production goes right back into the food chain in the form of these nutrient-rich grains. »» For every $1 spent at a grocery store, 84.2 cents go to marketing share, which includes labor, transportation, energy and packaging. »» Just 15.8 cents are associated with farm costs — of that, only 3 cents are associated with the value of corn. • Transportation costs — specifically the price of oil — have a strong impact on increasing food prices. »» The average food item travels 1,500 miles from farm to grocery store in the U.S. — the fact is, food prices rise when oil prices rise. • American corn growers have demonstrated they have more than enough capacity to satisfy all demand for livestock feed, exports and ethanol. »» In fact, the United States corn growers were capably producing 11-13 billion bushels of corn annually to satisfy domestic feed, industrial milling use and export demand for many years, resulting in steady surpluses. • The production of ethanol contributes to the feedback loop. • The USDA forecasts that the price of food will increase by 3.5 percent in 2013, just slightly above historical inflation averages of approximately 3 percent per year. • Because of new technologies that allow farmers to grow more crops on fewer acres of land, corn farmers are poised to increase plantings even more to take advantage of the growing market for renewable liquid fuels. Myth: E15 reduces miles per gallon. • Ethanol is approximately 40 cents a gallon cheaper than gasoline, thus helping lower the costs at the pump. Many factors go into mileage and there have been zero studies conducted that demonstrate that E15 reduces mileage. • NASCAR® drivers have accrued more than 3 million miles on Sunoco Green E15, repeatedly validating the fuel’s durability and performance capabilities across the toughest conditions. »» NASCAR drivers applaud the fuel’s high-performance, and note an increase of up to 10+ horsepower. updated January 25, 2013 2:59 PM find us online at GrowthEnergy.org