What’s That Wednesday – ETHANOL

By Published On: August 7, 2024Categories: What Is It Wednesday

Is Ethanol a food preservative, a biofuel, or both? In today’s What’s That Wednesday, we’ll explore ethanol, an organic compound with diverse applications. It is renewable and domestically produced in the U.S, and serves not only as an additive in beverages but also as a sustainable material sourced from biomass, playing an intrinsic role in the fuel industry. Let’s explore this sustainable material sourced from biomass and uncover its various uses in the fuel industry!

 

What is it?

Ethanol is a liquid alcohol derived from biomass. When pure, it is a colorless, flammable liquid. Chemically, it is a simple molecule, composed of two carbon atoms, six hydrogen atoms, and one oxygen atom. As a polar molecule, it dissolves readily, making it versatile for various applications. It’s primarily sourced from biomass such as corn, sugarcane, wheat, and other plants rich in sugars. It plays integral roles in both industrial and fuel sectors, serving as a solvent and an additive in automotive gasoline. When used as a biofuel, ethanol is recognized as renewable, produced through the fermentation of corn and qualifying as an alternative and sustainable fuel additive to fossil fuels. It provides less energy per gallon compared to regular gasoline, which is why it is considered a desirable source of renewable fuel.

 

How it is Produced

Ethanol is produced in various ways, depending on what it will be made for.  To be utilized as a biofuel, the process includes converting biomass to ethanol through a fermentation process. In the United States, the fermented sugars from corn are the main biomass source. During the fermentation process, bacteria and yeast metabolize the corn sugars, and thus, it is produced. What separates edible ethanol from the one used for biofuels are the denaturants: substances that diminish the original properties of ethanol, making it undrinkable yet suitable as a biofuel.

 

Ethanol as Biofuel

When ethanol is used as a biofuel, it acts as a blending agent with gasoline. This increases octane levels and reduces carbon monoxide and other emissions. There are different approved blends for gasoline-powered vehicles. The most commonly used blend is E10, which consists of 10% ethanol and 90% gasoline, effectively reducing air pollution. Another popular blend is E15 or 15% ethanol and 85% gasoline. These blends are widely used and approved for most gasoline engines.

It is also available as a flexfuel  (E85) and can be used in vehicles designed for flexible fuels that can operate with any blend up to 83%. It plays a significant role in fuel economy, but its impact varies depending on the ethanol content in the fuel. Factors such as engine optimization for gasoline versus ethanol also influence its efficiency. Ethanol also has a higher-octane number than regular gasoline, thus providing increased performance and power.

 

The Role in Energy Industry

The United States is the leading producer and user of ethanol as a biofuel. By the end of 2022, its production capacity had increased to 17.7 billion gallons annually, up from 13.6 billion gallons in 2011. This capacity has continued to rise over the years. Ethanol is heavily relied upon in the United States, particularly for biofuel purposes. Since corn is the primary biomass source for ethanol production in the U.S., our ethanol demonstrates a positive energy balance. This means the production process does not require more energy than what is contained in the biofuel.

Ethanol’s economic benefits make it a valuable commodity in the U.S. The production is a driving force in fueling profitability in the farm economy. For farmers, it represents a profound value-added market. Despite a 74% increase in feedstock prices in 2021, biorefineries processed over 5.1 billion bushels of corn, managing to remain profitable. During the COVID-19 pandemic, when the economy was in a downturn, the ethanol industry provided critical support in the nation’s economic recovery. This aided rural communities facing economic crises. Biorefineries also contribute by providing stable, well-paying jobs, which are particularly valuable in regions where employment opportunities are scarce. In the U.S., 18% of biorefinery employees are military veterans, which is three times above the national workforce average. As the U.S. continues efforts to reduce carbon emissions, refineries have optimized their processes to harness ethanol’s properties effectively. With a consistent nationwide demand for ethanol, the industry continues to bolster the economy and reap benefits across various sectors.

As the nation transitions to renewable fuel sources, ethanol has become one of the most sought-after biofuels. As a renewable energy source, it serves both as a biofuel and as a fuel additive. It reduces overall greenhouse gas emissions compared to conventional gasoline, making it a cleaner alternative in the transportation sector.

 

This article is part of What Is It Wednesday

Tagged:

Subscribe to our Daily Feed

Daily articles and insights from the fuel markets and natural gas space.

Categories
Archives
MARKET CONDITION REPORT - DISCLAIMER

The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Stay on Top of the Fuel Markets

FUELSNews, your daily source of marketing information and insights

Subscribe to our publications and newsletters