NPRA '08: Corn ethanol seen to have downside

31 March 2008 19:54  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Corn-based ethanol is a bad alternative for motor fuel because it has poor efficiency and no true benefit for the environment, a chemical producer said on Monday.

"Yes, it is renewable, but unless you can viably produce it from cellulosic feedstock, ethanol is not the solution," the source said on the sidelines of the National Petrochemical & Refiners Association (NPRA) annual meeting in San Antonio, Texas. The meeting began on Sunday and runs through Tuesday.

Cellulosic ethanol is made from non-food biomass, including switch grass, wood chips and corn cobs. Technology to produce cellulosic biofuel already exists, but not in large scale.

The producer said one method for the US to lower its dependency on crude oil is to improve US fuel efficiency standards, which were left unchanged for 17 years until last December, when legislation was passed setting new targets for 2020.

US auto engines will have to achieve an average fuel economy of 35 miles/gal by 2020, up from the current 27.5 miles/gal for passenger cars and 22.2 miles/gal for light trucks.

The chemical producer said it expects crude oil to remain on an upward trend in 2008, adding that that crude was more likely to hit $120/bbl this year than to drop back under $100/bbl.

By: William Lemos
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