Iowa’s Ethanol/E85 ~ January 12, 2009

Iowa leads in corn production

Iowa produced 2.4 bbu of corn in 2007, average yield 175 bu/acre

In 07/08, 327 mbu of corn were fed in-state. In 08/09, projected in-state feed use is

In 07/08, Iowans used an estimated 1,066 thousand metric tons of DDG to feed livestock. DDG use expected to increase to 1,696 KMT in 08/09. (Assumes 30% ration for ruminants @1.2 feed value of corn; 15% ration for hogs @ at 1.0; and 5% ration for

The US produced 13.1 billion bushels of corn and has a current ethanol capacity of 9.4 billion gallons of ethanol.

Ethanol—Iowa’s the leader!

Iowa’s ethanol industry can produce more than 2.8 billion gallons annually, using over 1 billion bushels of corn (almost 30% of the 2007 Iowa crop).

4 wet mills = 445 million gallons

31 dry mills = 2.4 billion gallons

TOTAL: 35 Iowa Ethanol Plants

8 under construction/expansions = 910 million gallons

Combined production & construction/planning capacity = 3. 5 billion gallons, using 1.3 bbu (50% of the 2007 crop).

In 2007, Iowa produced a record 2 billion gallons using 740 mbu, a production increase of 36% over 2005.

Ethanol: using home-grown fuel in Iowa:

Iowans bought over 1.2 billion gallons of ethanol blends last year (1,216,034,082 gal. in 2007 (1,212,613,525-E10 and 3,420,557 – E85).

Ethanol’s market share now = 78% of Iowa fuel

Iowa E85 sales set monthly sales records this year.

• 58% growth in sales from 2006 to 2007 (3,420,557 in 2007 vs. 1,975,359 in 2006)

• 108 E85 pumps in Iowa now (55 in 2006).

• 1 out of every 10 vehicles purchased in 2007 was a FFV

• As of September of 2007 Iowa had approximately 95,000 FFV’s on the roads

Food & Fuel – Corn Growers Can Do BOTH

A study released by Merrill Lynch states that blending ethanol with gasoline gives

you a 45 cent savings at the pump

Kernels of Truth

o 11 cents of corn can be found in your cereal

o 28 cents of worth of corn can be found a dozen eggs

o There’s only 13 cents of corn in a gallon of milk

o There are 18 cents of corn in a ¼ pound hamburger

o 31 cents of corn can be found in an Iowa pork chop

o Soda contains just 3.5 cents of corn in a liter

Contributors to food costs

Labor = 38¢ of each dollar consumers spend on food

Packaging, transportation, energy, advertising, profits = 24¢

All food inputs = just 19¢

Ethanol: Good for the environment

By using E85, an FFV driver reduced CO2 emissions to the atmosphere by 4 tons.

E85 use reduces ozone-forming pollution by 20%

E85 reduced fuel life-cycle greenhouse gas emissions nearly 30%

E85’s lower pressure can help reduce evaporative emissions.

Gasoline contains toxic compounds like benzene, toluene, and xylene. E85 use reduces the release of these chemicals into the environment.

Water use comparisons:

It takes less water to produce a gallon of ethanol than a gallon of oil (3 gallons water to

1 gallon ethanol vs. 9 gallons water to 1 gallon of gasoline).

A typical 40 million gallon ethanol plant uses about the same water per day as a standard 18 hole golf course.

The U.S. ethanol industry needs 49 million gallons of water per day (based on 6 billion gallons of production) – less than 3/10 of 1% of U.S. daily industrial water use.

It takes 300 million gallons of water to produce a single day’s supply of U.S. newsprint.

Ethanol: Good for energy independence

Using home-grown ethanol reduces U.S. oil imports by 128,000 barrels each day.

Each barrel of ethanol we produce displaces 1.2 barrels of petroleum.

Ethanol: Good for Iowa’s economy

Iowa’s ethanol industry has resulted in more than 47,000 new jobs in Iowa, benefiting all employment sectors and especially benefiting rural communities.

Ethanol production puts $1.7 billion into Iowa consumers’ pockets each year.

Ethanol: Good for your engine, good for your pocket book!

A vehicle using regular unleaded gets about 20 miles per gallon of gas; extending the same amount of gas by blending it with E85, a flexible fuel vehicle can travel more than 100 miles.

IndyCar drivers burn 100% ethanol in their engines traveling 220 miles per hour and can’t say enough good about ethanol as a performance fuel.

60 cents of every dollar spent purchasing E85 stays in Iowa

Ethanol blended gas saves the average family $1,000/year

If you’ve heard it once you’ve heard it 10 times:

Ethanol is energy-efficient – when corn is processed into ethanol, there is a net energy gain of 67%. In other words, ethanol contains 67% more energy than it takes to produce!

Iowa Corn Markets = 2.4 billion bushels

35% - 863 mbu = Ethanol

24% - 565 mbu = Livestock sector

23% - 555 mbu = exported to other states or countries

16% - 367 mbu = corn oil, sweetners and starches

U.S. Corn Markets = 13.1 billion bushels

55% - 6.2 bbu – livestock

17% - 3 bbu – ethanol

19% - 2.4 bbu – exports

5% - 1 bbu – starch, corn oil, sweetners

3% - 328 mbu – flour, grits, meal, beverage alcohol