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Ethanol to Play Critical Role in GHG Reduction According to IEA Study

A new study commission by the International Energy Agency (IEA) has examined greenhouse gas (GHG) emission reduction since 1995 to the projected GHG reduction in 2015, as a direct result of the use of grain ethanol. The conclusion: ethanol will play a vital role in reducing future GHG emissions.

The new study, entitled An Examination of the Potential for Improving Carbon/Energy Balance of Bioethanol and prepared by (S&T)2 Consultants, Inc. in Canada, found that through the advancement of technology, process efficiencies and improving crop yields, the ethanol industry has the potential to invoke significant reductions in the levels of  GHG emissions.

Currently, the development and use of ethanol in place of petroleum reduces GHG emissions by 39%, with that number continuing to grow year by year, reaching a reduction of 55% by 2015, doubling since 1995.  The study points out the danger of making policy decisions based on historical data without taking into account learning experiences and the potential gains that can be expected as industries develop.

Along with the improvements in GHG reduction, the ethanol industry is also making significant progress in the direction of improving its energy balance. By 2015, the ethanol industry's energy balance ratio is expected to increase to 1:1.93, a 55% increase in energy efficiency in just 10 years.

The gasoline energy balance is projected to continue to decline as more synthetic crude oil is incorporated into the refining slate. The ethanol energy balance continues to improve as efficiency gains are made both with feedstock production and ethanol manufacturing. 

Governments must develop energy policies based on the increasing efficiency of the ethanol industry, rather than relying on out-of-date data, which would lead to a significant underestimation of the benefits of the ethanol industry. Without governments realizing this, the industry may not be given the extent of support it needs to reach its full potential. 

A copy of the full study can be found at:  http://www.iowarfa.org/documents/IEAGHGEmissionsRpt.pdf