Corn Ethanol Industry

Biggest Crop in Recorded History May Help the Crippled U.S. Corn Ethanol Industry eBoom - Corn-based biofuel may be making a return, not because it has become better at reducing emissions, but rather, because the economic climate is changing. Last week the U.S.

Department of Agriculture announced this fall produced the largest corn harvest ever recorded–over 13 billion bushels. As a result, corn prices have dropped and therefore the margin of profit for ethanol producers has increased. An increased profit margin is critical for the U.S. industry, as 12 companies have filed for bankruptcy in the last two years.

The corn ethanol industry is also buoyed by a government mandate that calls for the petroleum industry to blend 12 billion gallons of corn ethanol in 2010. Critics still argue it is nonsensical to use a food crop to produce fuel: the U.S. will use 33% of its corn crop to grow a fuel that will displace around 5% of the country’s gasoline consumption. Furthermore, research has shown that when a life-cycle analysis is conducted, corn-based biofuels produce more greenhouse gas emissions than petroleum.

Read the full story at Greentech Media: A Comeback for Corn Ethanol? Source: www.energyboom.com