US Ethanol Industry Confident of Bush Support
US: October 3, 2006


WASHINGTON - Ethanol producers expect the Bush administration to push for more research money to make biofuels cheaper and more widely available to drivers, the industry's main trade group said on Friday.

 

 


At a political event in Alabama on Thursday, President Bush devoted a portion of his remarks to promote ethanol, especially so-called cellulosic ethanol, which is made from less expensive switchgrass, wood chips and other agricultural waste. Most US ethanol is now made from corn.

"We're providing research dollars, and one reason you provide research dollars is because it's going to be important for us to use something beyond corn to make ethanol," Bush said.

"In other words, corn is good ... but you can imagine it's going to put a little strain on the corn market after a while, if the only raw material we use for ethanol is corn," he said. "And so the federal government has committed to spending a fair amount of your money to research other ways to make ethanol."

The Renewable Fuels Association, a Washington-based trade group that represents ethanol producers, expects the administration to continue its support for an expanded industry.

"We have no reason not to believe that the administration won't follow through on its very aggressive and forward-looking approach to ethanol," said RFA spokesman Matt Hartwig.

White House spokeswoman Dana Perino said the president was "talking about implementing current policy" and the administration had no plans to roll out any major new initiatives on ethanol.

She said the White House would seek more funding for its ethanol program, but that it was too early to talk about specific dollar amounts.

Some of the administration's efforts would reflect what Congress has already called for in a sweeping energy bill that Bush signed into law last year, according to Hartwig.

For example, the Energy Department has begun the process for soliciting proposals for government loan repayment guarantees for new plants that make cellulosic ethanol. It also will host a high-profile conference with the Agriculture Department in St. Louis next month.

"You're starting to see those very progressive portions of the energy bill that dealt with renewable fuels (like ethanol) starting to become implemented, starting to be realized," Hartwig said.

The Energy Department will also soon award US$8.4 million in government money to help put more "E85" pumps along major US highways, so drivers will have easier access to fuel made from 85 percent ethanol and 15 percent gasoline.

Farm groups have said that a key obstacle to expanding the industry is the E85 pump shortage, given the federal government already is offering incentives through recent energy legislation to boost production from corn and other crops.

One project being funded will create a Southeast ethanol highway corridor through Georgia, North and South Carolina and Tennessee, while two other proposals will put E85 retail stations along New York and Pennsylvania roadways.

Speaking in Alabama, Bush said he looks forward to the day when more Americans have flexible-fuel vehicles and can decide "whether or not you want to use ethanol as the primary source of energy in your automobile or gasoline."

Most ethanol pumps are located in the Midwest, where the corn is grown to make the renewable fuel.

 


Story by Tom Doggett

 


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