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DOE Ethanol Workshop Series

Ethanol: Fueling Iowa's Economy

August 29, 2001
8:00 a.m. to 4:30 p.m.

Auditorium, Iowa Farm Bureau Federation
5400 University Avenue
West Des Moines, Iowa

Workshop Summary

Over 100 people attended the Iowa Ethanol Workshop at the Farm Bureau Federation Auditorium, August 29, 2001. Private business had the largest participation; government agencies were also strongly represented. Nine Iowa legislators attended. The workshop occurred in the tailwind of a new ethanol plant start up -- the Midwest Grain Processors Coop plant in Lakota, Iowa -- which broke ground just days before the workshop.

The workshop uniquely began outdoors with an E-diesel demonstration, with two cement trucks starting their diesel versus E-diesel engines to show the difference in emissions. Growmark graciously provided the trucks; local media were there to record the event. The remainder of the program, directed by Sharon Tahtinen, Bureau Chief for the Iowa Department of Natural Resources – Energy Bureau, was inside in the Farm Bureau’s state-of-the-art auditorium.

Monte Shaw, from the Renewable Fuels Association based in Washington, DC, talked about the growth of the ethanol industry in his morning presentation. He mentioned that currently 20 states have 57 operating ethanol plants; 12 new plants are under construction. By the end of 2003, the industry projects to be producing 3.5 billion gallons of ethanol per year.

The morning segment also featured two panel discussions: one on economic impacts of ethanol production; the other covered marketing subjects. Dan Otto, from Iowa State University, was on hand to report on a study titled, “The effects of Expanding Ethanol Markets on Ethanol Production, Feed Markets, and the Iowa Economy.” The study was just completed this past June and submitted to the Iowa Department of Agriculture and Land Stewardship. The report projects increasing demands for Iowa ethanol production associated with the MTBE bans on the West Coast. The basic marketing message was that ethanol performs, not only mechanically, but also economically, in the country and in Iowa specifically. Ethanol is considered an additive and therefore gets incorrectly blamed quite often for engine problems. The future for ethanol as an energy source is very positive. Iowa, with all of its corn, can be a major player in the production of ethanol.

“Iowa’s poster girl for ethanol” as she called herself, Patty Judge, Iowa Secretary of Agriculture, boasted about her support for ethanol and farming. As the featured lunch speaker, the Agriculture Secretary strongly pushed farmers to look at value added products useable in the ethanol industry.

Remaining competitive was the topic challenge given to a panel of speakers in the afternoon. Presentations ranged from co-products to boiler fuels to other feedstocks to even worker training tips. One survey respondent appreciated the information from Ken Shewbert, of Airgas CO2 based in Texas, about carbon dioxide as a co-product that can offset production costs.

Chris Saricks, from Argonne National Laboratory, spoke about the energy balance and environmental significance of ethanol production and concluded that “increasing corn yield in farming and decreasing energy use in ethanol plants have had large, positive effects on fuel ethanol’s energy use and greenhouse gas emissions.”

Financing issues, market incentives and state tax credits for producers were discussed in a late afternoon panel. David Lyons, Iowa Farm Bureau, talked about financing options his organization offers for existing and new plants alike, monies that are available for even follow-on expenses.

Wrap Up

Lucy Norton, Director of Marketing for the Iowa Corn Promotion Board, facilitated the final wrap-up session of the day. The following audience responses were recorded:

Opportunities for Ethanol in Iowa

• California Market
  
• Northeast Market
  
• Octane & Oxygen Markets,
  
• Renewable Fuel Standard
  
• E-85
  
• E-Diesel
  
• Avgas
  
• Fuel cells
  
• Greater than the 10% blends (ref. To Brazil)
  
• Federal fuel standard
  
• DDG values to livestock feeding impact on livestock market
  
• CO2 sales