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Re: demise of fuel with ethanol?


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Posted by Indiana Ken on November 25, 2013 at 06:01:58 from (66.249.234.135):

In Reply to: demise of fuel with ethanol? posted by bill mart on November 25, 2013 at 00:58:18:

IMHO - The article is kind of a mis-leading rant about very little.

The RFS standard came into being in 2005 and outlined the minimum gallons of ethanol required to be blended into gasoline each year. It also projected increased requirements in future years. The EPA was authorized to levy fines against refiners who did not comply. In 2007 it was expanded to include bio-diesel blend requirements with a goal of some 36 billion gallons bio-fuels by year 2022. There have been adjustments along the way and the EPA has wavied requirements in the event supplies were interrupted or not yet invented, as in the case of cellulosic ethanol.

Since 2005 our gasoline useage did not increase at the rate anticipated and today there is not enough gasoline sold to blend the required bio-fuels with - the so called "blend wall". The revision referred to in the article has more to do with adjusting the blend requirements to current gasoline useage than any change in policy.

Since ethanol has become available the refiners can reduce costs by: 1) producing 84/91 octane gasoline (refining in octane costs money) and 2) blending the two gasoline grades and adding 10% ethanol (ethanol is cheaper than gasoline) to make the higher octane grades. As long as ethanol remains cheaper than gasoline I would not expect ethanol to go away even if the RFS was eliminated.

I have never been a fan of the RFS mandate and would like to see all pumps labeled as to fuel type and priced accordingly. For those that prefer non-ethanol gasoline, let them have a choice. For those that prefer E-10, let them have a choice.


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