Ethanol and E85

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Ethanol

• Ethanol and E85
• By Madhav Kothapalli
• John Sappington
• Aaron Beshears
• Adam Wenke
• And Jake Gillilan

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Ethonal and E85
Ethanol is one of many alternative sources of
fuel now available to us. What makes it
different from the rest? A product that is
cheap, environmentally friendly, and already has
a market should stand out of the crowd.
3

• ?Madhav
• Aaron
• Adam
• Jake
• John

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Economics of E85

• These following slides will discuss
• Economic Advantages and Disadvantages of E85.
• Other facts about ethanol

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Advantages

• Octane Rating of E85 105. Gasoline 87
• Pure Ethanol has an octane rating of 113.
• Increased engine efficiency and performance.
• Can be made from anything that contains starch.
• Ethanol yields roughly 26 more energy than it
  takes to produce it.
• Gasoline requires 24.3 more overall energy input
  but consumes 32.9 less fossil energy
• Prices stay constant.

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Disadvantages

• Burns its energy quickly.
• Reduces mpg of a car.
• More trips to the gas station
• Hard to find outside Midwest.
• Currently costs more than gasoline.
• Can only run on certain vehicles, called flexible
  fuel vehicles (FFVs).

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Other Facts

• Minnesota has about 300 E85 stations.
• After Minnesota, Nebraska and Iowa one of the
  largest producers.
• During its production, ethanol is denatured, or
  made unfit for human consumption, by adding a
  small amount of gasoline.
• 4 billion gallons produced in 2005.
• 119 billion gallons needed for a nationwide switch

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• ?Madhav
• ?Aaron
• Adam
• Jake
• John

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Sources of Ethanol

• Corn
• First it was made of just the grain
• Now researchers are using the whole plant
• Switchgrass
• 14Mg of dry biomass that can be converted into
  ethanol
• Waste biomass and corn fibers
• Any cellulose based plant product

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How is Ethanol Made
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Uses of Ethanol

• E85
• 85 Ethanol 15 Gasoline
• Flex fuel vehicals
• GM has over 1.1 million cars on the road able to
  run on E85

12

• ?Madhav
• ?Aaron
• ?Adam
• Jake
• John

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Environmental Benefits of Ethanol

• Air Quality
• Ground Water

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Air Quality

• The 1990 Clean Air Act enforced an oxidation
  additive be mixed with gas to make it more
  volatile
• The Choices were Ethanol and MTBE
• (methyl tertiary-butyl ether)

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Air Quality

• Ethanol
• By using ethanol it can lower CO2 emissions by
  10 and much more with E85.
• Lowers green house gas emissions by 12 to 19
• Lower smog emissions by almost 25

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Ground Water

• MTBE effected ground water supplies from leaks in
  underground gas tanks.
• MTBE makes water from these supplies taste bad
  and look discolored.

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• ?Madhav
• ?Aaron
• ?Adam
• ?Jake
• John

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Energy Policy Act of 2005

• President hopes act will double amount of ethanol
  in seven years
• Gives 10 cent tax credit for every gallon of
  ethanol produced up to 15 million gallons
• Maximum limit of ethanol that can be produced
  raised from 30 million to 60 million gallons
• Tax credit of 30 of the cost of a fueling
  station up to 30,000 for anyone who installs a
  ethanol fueling station (See
  tax form)--gt
• 1,000 credit given for the installation of
  ethanol pumps in fueling stations
• Hopes to encourage businesses to convert their
  equipment to use ethanol

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Volumetric Ethanol Excise Tax Credit

• Gives ethanol producers 0.51 for every gallon of
  pure ethanol produced
• The act also gives 0.0051 per percent of ethanol
  blended so 0.4335 for a gallon of E-85
• Has started to make a noticeable difference
• In 2004 ethanol production capacity was 3.4
  billion gallons
• Currently is 4.4 billion gallons
• Currently capacity for 2.1 billion more gallons
  is being constructed

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Iowa Incentives

• Gas stations that sell 60 or more of their gas
  blended with ethanol receive .025 for every
  extra gallon sold
• Alternative Fuel Grant by the Iowa DNR
• For owners of vehicles that use high ethanol
  content fuel
• Grant also available for scientists for
  researching cars that run mostly on ethanol
• The Alternate Energy Revolving Loan Program
• Zero percent interest loan up to 250,000, or
  half the cost of the building and equipment, for
  companies that want to build facilities to
  produce ethanol

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• ?Madhav
• ?Aaron
• ?Adam
• ?Jake
• ?John

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Renewable Fuels Standard

• This was supposed to encourage renewable fuels to
  higher rates of production.
• By 2012 production of renewable fuels to increase
  by 3.5 billion gallons.
• In 2013 ethanol made from plants to be at least
  250 million gallons per year.
• Each season ethanol producers must make at least
  25 of their annual obligation.

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Iowas E85 Fuel Exclusivity Contract Regulations

• Meant to insure that motor fuel dealers have
  access to Ethanol when needed.
• Requires a franchise to deliver ethanol to the
  motor fuel dealer when asked for. Or to allow
  the dealer to purchase from another source.
• No contracts made in Iowa are free from the law.
  New or renewed contracts must have it built in
  but if the contract was signed before the law
  came into effect and was never renewed the
  franchise is required to provide the service
  anyways.

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Common Regulations

• States put few to no regulations on the fuel but
  regulate use of ethanol.
• Many states require that a vehicle that runs on
  an alternative fuel must be registered with the
  state. Even vehicles that were converted are to
  be registered.
• Another concern of State legislatures is that
  some of the alternative fuel vehicles will be
  unable to produce great enough speeds to run
  safely on the highway. Thus laws have been
  passed to limit slower AFVs to 35 mph and under
  roads.

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Thats All Folks

• I pity the fuel that is not ethanol !!!!!
• Any questions?