Wednesday, August 17, 2005

Ethanol's fuel additive benefits continue to spark debate

mcall.com - Ethanol's fuel additive benefits continue to spark debate:
By Robert Manor -- August 12, 2005
And the ethanol industry is growing more efficient.

The plant in Lena, built in 2002, sometimes extracts as much as 2.8 gallons of ethanol from a bushel of corn. An output of 2.5 gallons used to be considered good.

The plant is highly automated, which holds down the cost of the ethanol it makes.

Meanwhile seed companies are developing new corn varieties that will yield more ethanol, which would cut prices and make it more competitive with gasoline.

John Urbanchuk, an agricultural economist with the LECG consulting firm, said if gasoline prices remain high and ethanol continues to grow cheaper, it will some day need no government money.

''That time is on its way,'' Urbanchuk said.

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