Joanna Schroeder, APR

1
Ethanol and Agriculture

• Joanna Schroeder, APR
• Director of Communications
• EPIC

2
Agenda

• Why Ethanol Promotion and Information Council
  (EPIC)?
• What is Ethanol?
• Consumer Research
• Issues, Challenges and Successes in Agriculture
• Marketing ethanol as a brand
• Challenges Opportunities in the Ethanol
  Industry

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All About Ethanol

• Process, facts and myths

4
Ethanol Promotion and Information Council (EPIC)

• EPIC was formed in May 2005 after consumer
  research showed that consumers hesitation to use
  ethanol was based on performance misperceptions.
• EPIC began with a handful of industry and plant
  sponsors and now has more than 150 producer,
  industry and association members.
• The program was launched with the announcement
  that IndyCar Series would use 100 percent
  fuel-grade ethanol beginning in 2007.

5
Ethanol Facts

• Created by fermenting grain-usually corn
• 2.9 gallons of ethanol per bushel of corn
• Co-products from ethanol production
• Ethanol
• Distillers Grains (DDGs) - Wet or Dry
• Carbon Dioxide (CO2)
• Other feedstocks
• Cellulosic (Sugar Cane, switchgrass, woodchips,
  citrus, etc.)
• Wheat
• Barley

To view How Ethanol Is Made video visit
http//www.drivingethanol.org/ethanol_facts/produc
ing_ethanol.aspx
6
Ethanol Myths

• Food vs. fuel
• 11 of the feed grade corn is utilized
• Process creates high protein feed additive
  (Distillers Grains)
• Less than 2 of yellow dent corn is used for
  food.
• Less than .05 cents of corn in a 3.25 box of
  corn flakes
• Negative Energy Balance
• Gas production .8 for each 1 unit to create
• (20 decrease)
• Ethanol production 1.67 for each 1 unit to create
• (67 increase)
• Will not work in my car
• All cars manufactured today can run on E10
• Water Use
• 3 gallons of water per one gallon of ethanol
• 2.5 gallons of water per one gallon of oil
• Less than 4 percent of all corn used in ethanol
  production is irrigated

7
Ethanol Statistics

• Currently produced at 134 plants in 27 states
  producing 7.2 billion gallons
• Currently 67 plants are under construction and 10
  undergoing an expansion for an additional 6.2
  billion gallons
• Total capacity is 13.4 billion gallons of ethanol
  by end of 2009.
• Currently 52 of the fuel is blended with ethanol

8
Consumer Research

• The foundation of EPICs program

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Knowledge of Ethanol
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We Know That Labeling Drives Consumer Preference

• Perceived presence of signage

• To see the full November 2007 Consumer study
  visit http//www.drivingethanol.org/news_events/c
  onsumer_awareness.aspx

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Issues, Challenges Successes in Agriculture
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Issues Challenges in Agriculture

• Perceived crop competition
• Land use issues
• Water issues
• Fertilizer issues (including fossil fuel use
  nitrogen)
• Feed competition (food vs. fuel)
• Frenemies infighting among commodity groups

13
Successes in Agriculture

• For growers, commodity prices are up across the
  board
• 2007 marked the largest corn crop in U.S.
  history with the least amount
  
  of acres in production
• Farm equipment sales have risen as well as
  tertiary sales have risen
• Growers have more disposable income allowing
  them to own land, equipment and houses as
  well as invest in industries such as the ethanol
  industry
• Hybrid advancements reduced need for
  fertilizers, pesticides, water and increased
  starch per kernel of corn
• Ethanol won AgriMarketings product of the year
  this is the first time a commodity has won the
  award

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Marketing Ethanol

• Launch of the EPIC stylized e

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Marketing Ethanol 3 Key Message Points

• Good for your car
• Mechanics programs
• Free online ethanol fuel training available by
  visiting http//www.drivingethanol.org/promotions
  /training.aspx
• Motorsports programs
• IndyCar Series 100 percent fuel-grade ethanol
• ALMS Series E10 E85
• Drivers Education programs
• TV commercials to watch visit
  http//www.drivingethanol.org/news_events/media_vi
  deo.aspx
• Race to Go Green Sweepstakes
• Drivers Edge Program
• Dealership programs
• Retailer POP programs
• Pump tours

• To see pictures from the various EPIC marketing
  and PR programs, visit www.drivingethanol.org

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Marketing Ethanol 3 Key Message Points
(continued)

• Good for the environment
• Sponsorship of the Clean Air Green Tour
• Sponsorship of Global Warming 101
• Author and circulate articles on ethanol and
  environment
• Environmental calculator and the environmental
  cost of energy matrix
• Educational Fun Pak and Earth Day kits

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Marketing Ethanol 3 Key Message Points
(continued)

• Good for America
• Mobile Education Unit cross country tours
• Public relations pitching and programs on rural
  renaissance rising cost of oil, and costs
  associated with energy dependence
• Book review blog - http//www.drivingethanol.org/p
  romotions/book_review.aspx

The MEU appeared at more than 350 events in 42
states in 2007

• To learn more about the Renewable Fuels Now
  Coalition visit www.renewablefuelsnow.org.

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Ethanol Branding Program
25 States adopted
Met goal 25 States before the end of 2007
400,000 label opportunities in these states
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The Pump is Where the Rubber meets the Road
E10 branded pump in Arkansas
E85 branded pump in Iowa
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Next Steps for the Ethanol Industry

• Challenges Opportunities

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Challenges for Ethanol

• Must overcome the misperceptions about the
  ethanol industry being fueled by Big Oil
• There is too much confusion in the marketplace -
  all groups MUST work together and disseminate
  consistent messages
• Industry must wait out the current financial
  challenges
• Mergers and acquisitions
• Plant in construction being put on hold
• Not enough national and local support for
  research and development of the industry.

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Opportunities for Ethanol

• Anticipating the passing of a new Renewable Fuels
  Standard (RFS) within the next few weeks.
• Growth is unprecedented. The industry is on solid
  financial foundation and continues to help meet
  Americas energy needs.
• Cellulosic ethanol is not a dream but a reality.
  First plants will be operational within the next
  12 months.
• Ethanol plants are actively working with
  environmental groups and agriculture companies to
  reduce the need for water in both agriculture and
  production as well as on CO2 reduction programs
• Launched a the Renewable Fuels Now Coalition to
  address the negatively in the media

To learn more about the Renewable Fuels Now
Coalition, visit www.renewablefuelsnow.org
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How Can you Participate?

• The industry is growing at a rapid pace
• 8 major builders
• 12 major ethanol brokers
• 8 enzyme and yeast companies

• 5 major grain storage builders
• Fire suppression companies
• Insurance companies
• Rail cars/trucks/pickups/cars
• Computers/staffing/training/
• Grain purchasing
• Regional/Local Utility Companies
• More than one hundred other industry partners

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You and Your Companys Action is VITAL

• Adopt the e
• Support and promote the brand
• Become an EPIC partner
• Adopt consistent industry key messages about the
  benefits of ethanol
• Partner with EPIC on promotional opportunities

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Questions or Comments?

• For more information contact
• Joanna Schroeder, APR
• Director of Communications, EPIC
• jschroeder_at_EPICinfo.org
• 402-932-0567 ext. 204
• www.drivingethanol.org