Ethanol Production Poised to Surge in US
VOA News
A recent deal between the United States and Brazil to share ethanol technology
marked a key step to expand the American market for alternative fuels. Brazil
has built a strong local market for ethanol based on local sugar production,
and U.S. officials are hoping to learn some lessons from its success.
Most U.S. ethanol is made from corn. And expanding ethanol production is crucial
to President Bush's goal of reducing gasoline consumption in the country by
20 percent over the next 10 years.
"The president's goal has begun to shake up the energy sector,"
says Brian Dean, head of the Interamerican Ethanol Commission. "That's
not just ambitious, it's audacious. We're going to start seeing policy initiatives
immediately, I think. And with those policies, consideration needs to be given
to our ability to create enough products to meet these very ambitious objectives
of 35 billion (gallons). The United States only produced a little over five
billion gallons last year, it consumed close to six billion. We're talking
about a five-fold increase."
The United States is already looking for additional partners in Latin America
to expand the ethanol sector. However, current U.S. policies restrict imports
of ethanol and crops from the region, mainly because of pressure by U.S. farmers
concerned about losing market share.
Dean says the supply of ethanol from corn and other domestic farm crops will
not be enough to meet the Mr. Bush's goals. "But clearly, corn alone,
sugar cane alone, or any single feedstock that is agricultural is not going
to be able to satisfy the market," he notes. "Clearly the future
of ethanol lies in a holistic approach that contemplates agricultural sources,
but also the cellulosic technologies. There needs to be an expansive view
of ethanol."
Cellulosic ethanol is derived from biomass or plant waste, such as bagasse
from sugar cane. Experts are still working to improve the process. But within
a few years, it could expand the market place for fuels, says George Philippidis,
associate director of the Applied Resarch Center at Florida International
University.
"Where depending on what kind of raw material you have in each part of
the country or the world, the [processing] plant will feed on that,"
he explains. " For instance, south Florida is very rich in bagasse [sugarcane
waste]. Central Florida has a lot of citrus peel."
Philippidis says the technology to make ethanol from such waste products is
still a few years away. But he says it will be needed to reduce demand for
corn, sugar, and other farm products. Already, the rising interest in ethanol
has been blamed for a jump in prices for corn tortillas in Mexico.
Philippidis says we can expect to see more market fluctuations.
"The free market operates that way. We're going to see the ups and downs
until we have a demand and supply that are in sync. But that doesn't scare
me, it doesn't concern me. That's a natural cycle that the market is going
to go through," he says.
Experts say the move away from an oil-based energy market will help reduce
pollution and increase energy security. But, as long as demand for ethanol
remains high, consumers should expect not to see much savings at the gas pump.
© VOA News
