Country : South Africa

Topic Area : Ethanol Viable Fuels

Committee : Ecofin

The Whole Bioethanol Revolution

Will Save Maize Farmers in South Africa
Overview
Renewable energy flows involve natural phenomena such as sunlight, wind, tides, plant
growth, and geothermal heat, as the International Energy Agency explains:
Renewable energy is derived from natural processes that are replenished constantly. In its
various forms, it derives directly from the sun, or from heat generated deep within the earth.
Included in the definition is electricity and heat generated from solar, wind, ocean,
hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from
renewable resources.
Renewable energy replaces conventional fuels in four distinct areas: power generation, hot
water/ space heating, transport fuels, and rural (off-grid) energy services:
 Power generation. Renewable energy provides 18 percent of total electricity
generation worldwide. Renewable power generators are spread across many countries,
and wind power alone already provides a significant share of electricity in some areas:
for example, 14 percent in the U.S. state of Iowa, 40 percent in the northern German
state of Schleswig-Holstein, and 20 percent in Denmark. Some countries get most of
their power from renewables, including Iceland (100 percent), Brazil (85 percent),
Austria (62 percent), New Zealand (65 percent), and Sweden (54 percent).
 Heating. Solar hot water makes an important contribution in many countries, most
notably in China, which now has 70 percent of the global total (180 GWth). Most of
these systems are installed on multi-family apartment buildings and meet a portion of
the hot water needs of an estimated 50–60 million households in China. Worldwide,
total installed solar water heating systems meet a portion of the water heating needs of
over 70 million households. The use of biomass for heating continues to grow as well.
In Sweden, national use of biomass energy has surpassed that of oil. Direct
geothermal for heating is also growing rapidly.
 Transport fuels. Renewable biofuels have contributed to a significant decline in oil
consumption in the United States since 2006. The 93 billion liters of biofuels
produced worldwide in 2009 displaced the equivalent of an estimated 68 billion liters
of gasoline, equal to about 5 percent of world gasoline production.

Causes
While many renewable energy projects are large-scale, renewable technologies are also suited
to rural and remote areas, where energy is often crucial in human development. Globally, an
estimated 3 million households get power from small solar PV systems. Micro-hydro systems
configured into village-scale or county-scale mini-grids serve many areas. More than 30
million rural households get lighting and cooking from biogas made in household-scale
digesters. Biomass cookstoves are used by 160 million households.
Climate change concerns, coupled with high oil prices, peak oil, and increasing government
support, are driving increasing renewable energy legislation, incentives and
commercialization. New government spending, regulation and policies helped the industry
weather the global financial crisis better than many other sectors.
Solutions: Ethanol Facts (Environment Friendly Biofuels)
Ethanol is one of the best tools we have to fight air pollution from vehicles. Ethanol contains
35% oxygen. Adding oxygen to fuel results in more complete fuel combustion, thus reducing
harmful tailpipe emissions. Ethanol also displaces the use of toxic gasoline components such
as benzene, a carcinogen. Ethanol is non-toxic, water soluble and quickly biodegradable.
Ethanol is a renewable fuel produced from plants, unlike petroleum-based fossil fuels that
have a limited supply and are the major contributor of carbon dioxide (CO 2) emissions, a
greenhouse gas (GHG).

Fact 1: Using ethanol in place of gasoline helps to reduce carbon dioxide (CO 2) emissions
by up to 29% given today's technology.
Because ethanol is made from renewable, plant-based feedstocks, the CO2 released during a
vehicle's fuel combustion is "recycled" by the plant as it grows. Most recently, work done by
the University of Nebraska - Lincoln found ethanol reduces direct GHG emissions between
48-59% compared to gasoline. New technologies, additional feedstocks, and higher blends of
ethanol including E85 all promise greater CO2 reductions. In 2009, the production and use of
10.6 billion gallons of ethanol in the U.S. reduced CO2 equivalent greenhouse gas emissions
by approximately 16.5 million metric tons, the equivalent of removing more than 2.7 million
cars from America's roadways. (Source: GREET 1.8 Model).

Fact 2: New technologies are increasing ethanol yields, improving efficiencies and
allowing ethanol biorefineries to make better use of natural resources.
According to survey data compiled by the U.S. Department of Energy's Argonne National
Laboratory over the period 2001 to 2006, over the five-year period the industry was using
15.7% less electricity and on the whole, total energy use decreased 21.8%. A similar survey
conducted by a consulting firm, Christianson and Associates, determined that total energy
and electricity used at dry mills fell by 13%. On average, a gallon of ethanol containing
77,000 BTUs requires just 31,588 BTUs to produce at the biorefinery. The American Lung
Association of Metropolitan Chicago credits ethanol-blended reformulated gasoline with
reducing smog-forming emissions by 25% since 1990. The American Lung Association of
Illinois "is a major proponent of cleaner-burning fuels such as E85 and biodiesel, and other
less-polluting means of transportation."

Fact 3: Ethanol reduces tailpipe carbon monoxide emissions by as much as 30%, toxics
content by 13% (mass) and 21% (potency), and tailpipe fine particulate matter (PM)
emissions by 50%.
Ethanol also reduces secondary PM formation by diluting aromatic content in gasoline. Over
half of the air pollution attributable to vehicles comes from "high emitting" vehicles that
make up only 10% of the vehicle fleet. High emitters include older vehicles as well as well as
newer cars with malfunctioning pollution control systems. The use of ethanol-blended fuel is
also one of the best pollution control strategies for off-road vehicles, including motorcycles,
ATVs and snowmobiles, which represent a significant source of emissions. Source: Smog
Reyes, February 2004. Ethanol is the oxygenate of choice in the federal winter oxygenated
fuels program in cities that exceed public health standards for carbon monoxide pollution.

Fact 4: Ethanol is rapidly biodegraded in surface water, groundwater and soil, and is the
safest component in gasoline today.
A study conducted for the Governors' Ethanol Coalition, "The Fate and Transport of Ethanol-
Blended Gasoline in the Environment," concluded that ethanol poses no threat to surface
water and ground water. According to the report, ethanol is a naturally occurring substance
produced during the fermentation of organic matter and is expected to rapidly biodegrade in
essentially all environments. When gasoline contaminates soil or water, ethanol is the first
component to quickly, safely, and naturally biodegrade. A study commissioned by the MTBE
industry suggested that in the event of a gasoline spill or leak, since ethanol breaks down
first, benzene would persist in the environment longer. But this ignores the Fact that ethanol-
blended fuels contain less benzene, and the real threat posed to the environment is from the
presence of benzene in gasoline, not ethanol.

Fact 5: Ethanol reduces smog pollution.

Blending ethanol in gasoline dramatically reduces carbon monoxide tailpipe emissions.
According to the National Research Council, carbon monoxide emissions are responsible for
as much as 20% of smog formation. Additionally, ethanol-blended fuels reduce tailpipe
emissions of volatile organic compounds, which readily form ozone in the atmosphere. These
reductions more than offset any slight increases of evaporative emissions due to the higher
volatility of ethanol-blended fuel. Thus, the use of ethanol plays an important role in smog
reduction.
Importantly, in reformulated gasoline areas where smog is of most concern, gasoline blended
with ethanol must meet the same evaporative emission standard as gasoline without ethanol.
These ethanol blends have the added benefit of providing reduced tailpipe carbon monoxide
emissions and, therefore, further emissions reductions of smog.

Fact 6: Water usage in ethanol production is declining.

Water is required to produce most of the energy we consume. For example, a gallon of
gasoline requires anywhere from 2.5-8 gallons of water to produce. The use of all natural
resources, including water, in ethanol production is an issue the U.S. ethanol industry takes
very seriously. That is why ethanol producers are researching ways to reduce water use.
Those efforts are paying off. According to survey data compiled by the U.S. Department of
Energy's Argonne National Laboratory, water consumption at America's ethanol biorefineries
decreased 26.6% from 2001 to 2006. A new study from the University of Illinois-Chicago
finds that, on average, a dry-mill corn ethanol plant in 2008 uses 2.72 gallons of water per
anhydrous gallon of ethanol produced and discharges 0.46 gallons of water per anhydrous
gallon of ethanol. We invite you to view "Water Facts" published by the U.S. Geological
Survey for interesting water statistics.

Fact 7: Ethanol reduces formaldehyde emissions.

A California Environmental Policy Committee review of the air quality impacts of ethanol,
concluded that while the use of ethanol does result in slightly increased levels of
acetaldehyde and peroxyacetyl nitrate (PAN), "these compounds are more than offset by
reductions in formaldehyde," a toxic air contaminant many times more harmful than
acetaldehyde. Furthermore, the Committee concluded other gasoline components are
primarily responsible for these emissions. "Other components of gasoline, such as aromatic
compounds and olefins, are primarily responsible for the formation of formaldehyde,
acetaldehyde, and PAN due to both their greater abundance in gasoline and their shorter
atmospheric lifetimes."

Policies
Ethanol (Ethyl Alcohol or Grain Alcohol) is commonly used in alcohol. The recent surge in
interest for alternative fuel sources is driving research to use Ethanol as a transportation fuel
source. There is still a great deal of debate about the pros and cons of ethanol as fuel. Ethanol
is commonly used as a fuel source additive and not as a fuel substitute.
One of the major benefits of ethanol produced today is the decrease in greenhouse gas
emissions than gasoline, while at the same time it is fully biodegradable. The decrease in
greenhouse gas emissions is significant, resulting in approximately a 20 percent reduction. It
is believed that once the process is further perfected and more efficient, the reduction could
be as high as 52 percent. Ethanol biodegrades fully without any harm to the environment and
is a very safe replacement for fuel additives
The South African Energy Development Corporation ( EDC ), a division of the state-owned
Central Energy Fund, is in talks to buy 30% of maize to fuel company Ethanol Africa in a
deal potentially worth R180 million (US$27.5 million). Ethanol Africa, formed earlier in
2005 by a group of farmers looking for outlets for the large maize surplus and relief from low
market prices, is planning to start ethanol production in 2007. The fund believed ethanol was
a “very good intervention” given the challenges faced by South African farmers struggling
with low prices and a 6 million ton maize surplus, Ethanol also provided a good source of
octane in petrol. The staged phase-out of leaded fuels from South Africa which began in 2002
must be complete by 1 Jan 2006. There is some concern that the banning of leaded fuels from
2006 could lead to shortages of high-octane gasoline as lead has traditionally been used to
boost octane levels.
Ethanol Africa eventually plans to construct eight ethanol plants. Construction on the first in
Bothaville is due to start later of 2005. The company hoped its ethanol production would be
taken up by local oil companies for blending into fuel, the ethanol could be exported to
Europe and Japan. The EDC is reportedly also exploring the conversion of sugar into ethanol,
and has signed a confidential agreement with a sugar company to investigate a number of
initiatives. Ethanol Africa, South Africa's first "green fuels" company based in the country's
maize-producing heartland around Bothaville in the Free State, is forging ahead with its plans
to produce environment friendly biofuels.

Conclusions
Ethanol has a positive energy balance whether produced from corn or other biomass
feedstocks, ethanol generates more energy than used during production. Plants used in
ethanol production harness the power of the sun to grow. By releasing the energy stored in
corn and other feedstocks, ethanol production utilizes solar energy, replacing fossil energy
use. A life cycle analysis of ethanol production - from the field to the vehicle - found that
ethanol has a large and growing positive fossil energy balance. According to a 2004 U.S.
Department of Agriculture Study, ethanol yields 67% more fossil energy than is used to grow
and harvest the grain and process it into ethanol. The study makes note of significant energy
efficiency improvements that have been made in ethanol production due to higher yielding
corn varieties, technological advances in ethanol production such as the use of molecular
sieves and natural gas, and improved farming practices (precision and no-till farming.)
According to a University of California-Berkeley study, "Ethanol Can Contribute to Energy
and Environmental Goals," the production of ethanol reduces petroleum use 95% as
compared to gasoline refining.
Unlike ethanol, other fuels, including MTBE and gasoline, take more fossil energy to produce
than they yield. Importantly, producing ethanol from domestic grains achieves a net gain in a
more desirable form of energy. It utilizes abundant domestic energy sources, such as natural
gas and coal, to convert grain into a premium liquid fuel. Only about 17% of the energy used
to produce ethanol comes from liquid fuels, such as gasoline and diesel fuel.