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By Request: Corn Ethanol

07 Jul 2008 11:43 am

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Aleks asks:

A somewhat detailed explanation of how corn ethanol is a waste of energy. The impact on the price of food is obvious, but I keep hearing it said that as much (non-solar) energy goes into ethanol as we get out of it without any description of how this works.

I'm not sure how detailed I'm able to go here, but the basic shape of things is that if you think about a coal power plant you have to recognize that not only does the plant generate energy but it also takes a lot of energy to run the plant. The coal needs to be mined, transported, etc. But coal contains a lot of energy so the whole process is worth doing as an energy-acquisition mechanism. By contrast, planting, raising, and harvesting a field of corn is a relatively labor intensive enterprise. And when you're done, you don't have any ethanol at all -- you just have a bunch of corn. The corn then needs to be transported (and it's bulky) which uses energy, and then turned into ethanol which uses yet more energy. All told, that makes it difficult for corn ethanol to really work as a viable source of net energy.

By contrast, I believe you can just get a lot more ethanol from a ton of sugar cane than you can from a ton of corn. It's just like how sugar cane is a more efficient source of sweetener than is growing fields of corn to make high-fructose corn syrup.

You can find a technical discussion of the energy issues involving several different kinds of crops here. I would say, as a layman, that researchers seem to have obtained a range of results on the question of energy efficiency and that the "right" answer seems to depend both on how you count and and on what the specifics of any given field are. It's also worth considering that chopping down forests to clear land for agriculture can contribute to global warming.

Ultimately, though, rather than "figure this out" what we need to do is price carbon emissions through a cap-and-trade scheme with auctioned permits. As with any other human activity, discerning the overall carbon impact is extremely difficult. For example, maybe corn ethanol by raising grain prices will, over time, make beef substantially more expensive in a way that reduces beef consumption and, in turn, lowers carbon emissions? There's just no real way to figure this stuff out, which is why we should mostly rely on the government to price carbon and let the market adjust accordingly, rather than trying to have the government pick "the best" technology.

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Comments (36)

Except that harvesting sugar cane is a lot more work than harvesting corn, AFAIK.

What about switch-grass? And what about cellulosic ethanol? Or maybe genetically engineering photosynthetic bacteria to grow quicker and produce lots of lipids rather than carbohydrates?

Anyhoo ... one thing that puzzles me about the ethanol debate is that whenever the subject of hunger comes up, you hear about how much grain we in America produce and that we're (if you'll pardon the pun) up to our ears in the stuff. Yet somehow the demand due to ethanol is driving the prices way up? What must the demand and supply curves look like that a vertical shift in the demand curve can cause such a shift in the price point?

Maybe an econometrist can jump in and explain things, but AFAIC something doesn't add up.

Sugar cane may be more efficient than corn as a source of ethanol, but it requires warm weather and therefore can be grown in only a relatively small portion of the United States. Corn is much less weather-dependent and can be grown just about anywhere.

Uh, you are forgetting the single biggest carbon input into producing ethanol - the amount of petroleum based fertilizer it takes to grow the source material.

Peter: Sugar cane may be more efficient than corn as a source of ethanol, but it requires warm weather and therefore can be grown in only a relatively small portion of the United States. Corn is much less weather-dependent and can be grown just about anywhere.

Of course, but I think the point is that it shouldn't be grown at all for ethanol; instead, we should look at reducing subsidies and tariffs that favor the inefficient source over the efficient one.

The strange thing about this post is that it first acknowledges the difficulty in determining the energy potential of corn, and then breezes over the problem of having the government price carbon. If it's so difficult to determine the "carbon footprint" of corn production, then why are you so sure that the governemnt will do a better job when it comes to cars, or shoes? Won't the system be rife with unfair differences, hidden subsidies and perhaps even corruption? Believe me, I like the idea, I'm just a bit skeptical it will work for anything but the most straightforward situations.

Uh, you are forgetting the single biggest carbon input into producing ethanol - the amount of petroleum based fertilizer it takes to grow the source material. - calipygian

Indeed. Even sugar cane requires good fertilization, doesn't it.

Smartest thing GW Bush ever said (although he managed to sound like a complete idiot whilst saying it) was "switch-grass". IIRC, it doesn't need much fertilizer to grow (but of course, processing cellulose into ethanol is a wee bit more difficult, although AFAIK, the "original" idea for biofuel ethanol was to make cellulosic ethanol using some extra biomass to run a fire for destructive distillation ... rather than depending on fermentation to produce the EtOH).

I'd say it grows like a weed, but not all "weeds" grow very well if you're actually trying to grow them. One time, e.g., I actually tried to grow dandelions. Those things'll spring up in your drive-way, on your lawn, etc. But if you designate a spot for them and try to actually grow them for eatin', they won't grow (unless you have a super-duper green thumb, I guess).

No Wittgenstein?

Outrageous!

Also keep in mind that as of right now ethanol must be trucked or railed to the blending facilities instead of piped like a lot of existing transportation fuels*. That also uses up a lot of diesel (energy).

Also, it should be echoed that a lot of fertilizer is used to grow the corn crop. This fertilizer is very natural gas intensive. Given the high domestic gas prices, more and more of this fertilizer is ocming from overseas (read: Middle East). Take that into account and we might not be so self-suffecient food wise as we think (we certianly aren't energy-wise)

*Kinder Morgan is currently developing an ethanol pipeline between Orlando and Tampa down in Florida

Sugar cane is grown quite efficiently in Brazil, Cuba and elsewhere south of us. But we can't get access to the ethanol Brazil produces from cane because the US sugar lobby, which sees to it that cane growers in the US get the subsidies they need to grow cane in the first place, also sees to it that protective tariffs remain in place to price Brazilian sugar out of the US market.

It should also be mentioned that growing corn, in addition to being labor intensive, is also carbon intensive since petroleum based fertilizers are used along with a lot of machines, to prepare the fields and plant and harvest the corn before it can shipped to energy (and water) intensive plants and turned into fuel.

The fact that a massive price increase in oil has been accompanied by a equally massive price increase in corn ethanol seems like a pretty good hint that it at best breaks even in energy.

I see the point about the difficulty of calculating the net effect of various human activities on carbon emissions. I don't know that a tax would be that much simpler, though - how do we calculate the carbon emissions in order to know the amount of tax to charge the polluter? And remember, we have to make that calculation in an environment in which wealthy polluters will be doing their best to skew the calculation of carbon output, capture the relevant regulatory agency, etc.

Sugar cane is grown quite efficiently in Brazil, Cuba and elsewhere south of us. But we can't get access to the ethanol Brazil produces from cane because the US sugar lobby, which sees to it that cane growers in the US get the subsidies they need to grow cane in the first place, also sees to it that protective tariffs remain in place to price Brazilian sugar out of the US market.

AIUI, the Florida sugar cane growers' lobby is perhaps the strongest and most effective agricultural lobby in the country.

The bigger question is why we're so willing to make a huge investment, private and public, in new ways to produce earth-destroying hydrocarbons, while we are reluctant to make any similar investments in (a) carbon sequestration, (b) non-hydrocarbon ways of producing energy, and (c) ways to reduce our consumption of energy.

Matt, Pimentel's research was been battered by multiple other studies for years. And, of course, the industry has moved forward since the paper you cite.

Here are a bunch of papers on ethanol efficiency, most disagreeing with Pementel's analysis.

One other thing Pementel misses is the fact that the "waste" from corn ethanol production is often used as cattle feed. He does not take the creation of this product into account.

As to corn vs. cellulosic, I was under the impression that corn ethanol was always considered a bridge.

Actually, with corn at $7/bushel, I'm hearing that ethanol plants are being shut down because they can't compete at that price. So current corn prices aren't, I think, being raised by corn-ethanol.
There's something else going on.

Here's another energy tidbit that's worth mentioning.

A little while back when I was complaining about the need to build new nuclear generators, some people were showing up and touting the air car.

Well if you look it up, the air car is actually less efficient to recharge (presumably through some electric, plug-in device) than are battery-powered vehicles.

So we will be going through our dwindling supply of coal (due to run out not long after oil runs out) faster if we use air cars instead of battery powered cars.

This runs us again into the necessity to get away from fossil fuels and to find something else that is going to last a little longer, and over-all be cheaper and cleaner (possible nuclear).

The new solar generators look promising, but let's see them get developed and marketed! When they're being used to charge up plug-in cars and to power and heat homes, then I'll feel better.

The high-fructose corn syrup analogy is even worse, because high-fructose corn syrup is much sweeter than sugar, given the same number of calories. Thus as inefficient as corn is for generating sweetener, it's even more inefficient for generating energy.

davido said... But we can't get access to the ethanol Brazil produces from cane because the US sugar lobby, which sees to it that cane growers in the US get the subsidies they need to grow cane in the first place, also sees to it that protective tariffs remain in place to price Brazilian sugar out of the US market.

Peter said... AIUI, the Florida sugar cane growers' lobby is perhaps the strongest and most effective agricultural lobby in the country.

I'm wondering if this will remain true now that Florida has bought out U.S. Sugar, the largest sugar producer in the nation, as part of the Everglades restoration project.

First some basics:

1. Sugar cane is a perennial, corn is an annual. So there is set of energy-consuming activities in terms of preparing the ground and planting the corn that in most years is not required for sugar cane, and of course since only part of the sugar can plant needs to be regrown and the stand of sugar cane is easier to keep free of weeds, less over-all need for fertilizer and herbicide inputs.

2. The product of sugar cane comes from the body of the plant, while the product of corn-starch ethanol comes from the seed. Therefore much more of the solar power that went into growing the sugar cane is available in the end product, and since growing seed is the most protein-intensive part of plant growth, high yielding corn requires far more energy-intensive nitrogen fertilizer. So sugar cane requires less energy input per plant and yields more useful biofuel feedstock per plant.

3. The most energy intensive step once the feedstock is ready for fermenting is the distilling of the alcohol from the water that it is dissolved in. Sugar cane is pressed at the processing plant, and the waste (bagasse) is normally used to provide heat to help with distilling.

Heavy reliance on co-generation of heat from bagasse and growing sugar cane for energy efficiency rather than highest yield per acre is what is behind the claimed yields of 700% Energy Return On Investment. Even if those are optimistic, they are light years ahead of optimistic estimates of corn-starch ethanol EROI.

On the only part of the entire US energy policy that is ecologically sound, which is the restriction on biofuel imports ...

It goes without saying that there is no universe in which it is sustainable for a country like the US, with twice the world average biocapacity per person, to be importing biofuel. The question is always, "what if everyone did this" ... and if everyone relied on a technology that requires energy imports into the US, we require more than one extra earth as a source for biomass.

Looking to biofuel feedstock that can be grown in temperate climates leads to the focus on cellulosic ethanol. For cellulosic ethanol, most of the same advantages apply as for sugar cane. The one big hurdle is breaking the cellulose down into a simpler feedstock that can be fermented ... the existing tried and tested approach requires high heat and pressure for the process. Using enzymes to break down the cellulose is what seems to be behind the most recent pilot plant announcements ... using biological techniques to break down the cellulose seems to still be at the lab bench stage but promises to be even more energy efficient.

And of course, finally, no biofuel is any more sustainable than the method for producing the biomass ... in brief, the fundamental arithmetic of sustainability is sustainable + unsustainable = unsustainable. If Brazilian ethanol production is driving the burning of the Amazon rainforest to produce the crop and livestock pushed aside from suitable sugar cane land, then its not sustainable, no matter how good its EROI.

So, to sum up, "Green" ethanol for a country like Brazil or the US has to be domestically produced ... any ethanol imported into the US is not green ethanol. And "Green" ethanol has to have a decent energy return on investment ... corn-starch ethanol, with a 25% to 66% EROI at best (and negative return according to some critics), is a dead end, but sugar cane ethanol, with 400% to 700% EROI, and cellulosic ethanol with cellulose processed with low-heat methods, with the potential for a 200% to 300% EROI, are worth considering.

"Ultimately, though, rather than "figure this out" what we need to do is price carbon emissions through a cap-and-trade scheme with auctioned permits."

No, we need to "price carbon emissions" by "pricing carbon emissions" - a carbon tax.

Unless the price of the carbon permits is passed along to the consumer, "cap and trade" will require non-price rationing mechanisms. Good luck with that.

The other thing to keep in mind with biofuels is that you are trading using large quantities of water for small quantities of fossil fuels. Sometime this tradeoff makes sense, sometimes it doesn't.

Posted by kafka | July 7, 2008 1:40 PM:

No, we need to "price carbon emissions" by "pricing carbon emissions" - a carbon tax.

Unless the price of the carbon permits is passed along to the consumer, "cap and trade" will require non-price rationing mechanisms. Good luck with that.

Of course the price of permits will be passed along to the consumer. Saying "unless the price of carbon permits is passed along to the consumer" is like saying, "unless the sun continues to shine,", or "unless gravity continues to operate".

A tax, in this particular case, would be an indirect mechanism requiring us to guess how much tax is required in order to achieve a given reduction. The cap and auction does not require that guesswork, it relies on an auction market to arrive at the price required to meet the quantitative target.

Posted by Kolohe | July 7, 2008 2:00 PM:

The other thing to keep in mind with biofuels is that you are trading using large quantities of water for small quantities of fossil fuels. Sometime this tradeoff makes sense, sometimes it doesn't.

... this is also a trade-off where using a starch from a grain shows up poorly compared to cellulosic ethanol ... the water-productivity of a perennial cellulose in per gallon of water terms will be much higher than the water-productivity of corn, which is a very thirsty crop per pound of corn-starch produced.

Even for ethanol from starch, corn is a silly choice ... potatoes makes much more sense in terms of physical productivity, but Idaho is not the first-in-the-nation Presidential political event.

Why is it that every miniscule factor in ethanol production is analyzed and weighted, whereas we just accept the production of gasoline as fact? You have to drive gasoline to the gas stations, too.

Also, what's with the comparison of corn ethanol to sugarcane ethanol? Isn't the idea to compare them to gasoline?

"By contrast, planting, raising, and harvesting a field of corn is a relatively labor intensive enterprise."

Uhhhhh....maybe you've never been on a really big farm but all the planting and harvesting is done by really big machines these days(decades).

Except for the individual ears of corn we yank off the stalk for dinner each night there ain't a whole lot of manual labor involved.

Energy Returned for the Energy Invested (EROEI) for various sources.

http://www.theoildrum.com/files/ch_balloon_tod.png


"There is clearly no doubt that fuel ethanol contains more energy than it takes to produce.

In June 2004, the U.S. Department of Agriculture updated its 2002 analysis of the issue and determined that the net energy balance of ethanol production is 1.67 to 1. (For every 100 BTUs of energy used to make ethanol, 167 BTUs of ethanol is produced.) In 2002, USDA had concluded that the ratio was 1.35 to 1.

The USDA findings have been confirmed by additional studies conducted by the University of Nebraska and Argonne National Laboratory. In fact, since 1995, nine independent studies found ethanol has a positive net energy balance, while only one study – which used outdated data – found the energy balance to be negative.

A Michigan State University study (2002) found that ethanol produced from corn provided 56 percent more energy than is consumed during production (1.56 to 1). This study looked at producing ethanol from both dry and wet milling of corn—and included corn grain production, soybean products from soybean milling and urea production."

"Of course the price of permits will be passed along to the consumer. Saying "unless the price of carbon permits is passed along to the consumer" is like saying, "unless the sun continues to shine,", or "unless gravity continues to operate".

Not according to Matt, who said this in his post on McCain's energy proposals:

"He wants a cap and trade system to combat global warming (good) but wants to organize it so that the costs are borne entirely by consumers rather than polluters (bad)."

(Where did that turdy stuff come from Linus?)

Curdy and Flandy slipped it to me. They have sources.

(I'll bet they do Linus. I think it's from one of those big corn websites authored by Turdy and Landy themselves.)

It's a head fake. You only think it's a big corn website. It's actually authored by these Birdy and Sandie Obamaphile types to look like an industry thing so you'll read the truth and think it isn't the truth.

Reputedly sorghum produces six times more ethanol than corn or sugar cane. China is allegedly switching its entire enthanol production to sorghum. Allegedly sorghum would resolve the "net energy" issues of ethanol, especially if the SwiftFuel people are correct that their process can produce $3/gallon "fake gasolene" that works as well as real gasoline while using no oil and no actual ethanol.

"There's just no real way to figure this stuff out, which is why we should mostly rely on the government to price carbon and let the market adjust accordingly, rather than trying to have the government pick "the best" technology."

I have absolutely no faith in the government's ability to "manage the market" in such a way that this will be any better than having it "pick the best technology." Instead, we'll see the "market" get distorted all of shape and the corporations impacted spending millions on bribes to politicians to make sure they don't pay what Matt thinks they should be paying.

In any event, solar energy from space as promoted by the late Dr. Richard Smalley would seem to be the only option for dealing with the energy needs of the rest of this century.

Even for ethanol from starch, corn is a silly choice ... potatoes makes much more sense in terms of physical productivity, but Idaho is not the first-in-the-nation Presidential political event.

Posted by BruceMcF | July 7, 2008 2:28 PM

Suddenly I pine for President Romney.

Thank you, Matthew and everyone else for addressing my question.

DAS and Bruce,

That was an informative summary of the issues involved. As someone tangentially involved in the field I would point out an additional point is that sugarcane requires a lot less nitrogen fertilizer than corn. It's a perennial, so applied nitrogen fertilizer doesn't leach away as much; it doesn't use nitrogen for seed production; and most interestingly, it can actually fix nitrogen to some extent. This wasn't known until about 15 years ago, but sugarcane can support a nitrogen-fixing bacterium in its sap (Gluconacetobacter).

Brazil has been growing sugarcane with very low rates of nitrogen fertilization for a long time, without seeing much of a diminution in yield. Given that nitrogen fertilization is an important cost of production that depends in itself on fossil fuel energy, this is an important advantage for sugarcane.

Perennial grasses like switchgrass are even better, of course. Of course you run into the tradeoffs between different land uses- i.e. should an area of perennial grassland be used for forage, fuel, or conservation. Biofuel crops are going to be part of the solution, but only a part. Ultimately we are going to have to turn to other sources as well, most probably nuclear energy and maybe solar and tidal as well.

"Of course the price of permits will be passed along to the consumer. Saying "unless the price of carbon permits is passed along to the consumer" is like saying, "unless the sun continues to shine,", or "unless gravity continues to operate".

Not according to Matt, who said this in his post on McCain's energy proposals:

"He wants a cap and trade system to combat global warming (good) but wants to organize it so that the costs are borne entirely by consumers rather than polluters (bad)."
-kafka

Whichever system gets implemented, a carbon tax and a cap-and-trade system will have the exact same impact on consumer/industry burden, as this is determined by elasticities of the market responding to ANY kind of tax, rather than the market responding to a creative tax.

You are correct on the problems with cap-and-trade, however. While a carbon tax can be fairly uniformly and consistently applied, trade permits require extra regulation to ensure that companies behave in good faith. There have been experiments done that show that often in a cap-and-trade system, certain firms will over-purchase permits in an effort to drive up their price, which will force competing businesses to shut down. There are also instances of environmental groups buying permits and burning them, so that no firm can produce that quantity of pollution.

"Of course the price of permits will be passed along to the consumer. Saying "unless the price of carbon permits is passed along to the consumer" is like saying, "unless the sun continues to shine,", or "unless gravity continues to operate".

Not according to Matt, who said this in his post on McCain's energy proposals:

"He wants a cap and trade system to combat global warming (good) but wants to organize it so that the costs are borne entirely by consumers rather than polluters (bad)."
-kafka

Whichever system gets implemented, a carbon tax and a cap-and-trade system will have the exact same impact on consumer/industry burden, as this is determined by elasticities of the market responding to ANY kind of tax, rather than the market responding to a creative tax.

You are correct on the problems with cap-and-trade, however. While a carbon tax can be fairly uniformly and consistently applied, trade permits require extra regulation to ensure that companies behave in good faith. There have been experiments done that show that often in a cap-and-trade system, certain firms will over-purchase permits in an effort to drive up their price, which will force competing businesses to shut down. There are also instances of environmental groups buying permits and burning them, so that no firm can produce that quantity of pollution.

It is easier to explain the problem with fuel from high quality edible carbohydrates/foods than anything other bad idea in this area.

Most old vegans know the old talking point about how inefficient it is to waste feeding grains to cattle to fatten them up to produce milk and meat. Cows have the ability to digest the entire quantity of starch, they can extract the proteins and fats in grass, and if you fed them grains, you could feed them the entire plant.

Vegans complain that humans can digest grains, and most adults could survive on a pound per day of dried grain for all protein and fat requirements.

But even transporting this grain from first world countries to the starving world raises prices so that the product needs subsidies to be affordable. You can't transport food very far before it becomes unsustainable in the long term (using oil as transport fuel).

Another point lost in most of the discussion is that first world agriculture is based upon fertilizer which is produced mostly by "reforming" natural gas (first to produce hydrogen). Essentially the hydrogens on the natural gas carbon chain are stripped off to produce hydrogen and carbon dioxide. Then the hydrogen is reacted nitrogen derived from air to produce ammonia. But since hydrogen is the feedstock, fertilizer will eventually become part of the sustainable hydrogen economy, eliminating this source of carbon pollution.

Although you can argue on humanitarian terms that it is okay to use lots of energy to feed people, probably the people who will suffer the most from global climate change, it is difficult to make a case for producing food products and then using them to produce fuel. Even though all the carbon from corn ethanol is carbon neutral, the overall process is probably not. The main detail that needs to be nailed down is the carbon balance, not the energy balance. Then this net (hopefully benefit) can be weighed against the lost benefit of food grade products.

But in the end, producing energy from a useful commodity is a bad idea. Energy (essentially heat) is the lowest possible use you can derive out of anything. BTW, this applies to oil as well. Imagine a world without all the products we derive from oil. Nobody would burn their clothing to stay warm, but in the long run this is what our energy policy amounts to.

There's just no real way to figure this stuff out, which is why we should mostly rely on the government to price carbon and let the market adjust accordingly, rather than trying to have the government pick "the best" technology.

Weren't you jerking off all over the energy bill when it was passed in the House this year that actually did try to pick the winners in the energy game? I'm pretty sure there was a nice handout to ethanol put aside in that bill.

Anyhoo ... one thing that puzzles me about the ethanol debate is that whenever the subject of hunger comes up, you hear about how much grain we in America produce and that we're (if you'll pardon the pun) up to our ears in the stuff. Yet somehow the demand due to ethanol is driving the prices way up? What must the demand and supply curves look like that a vertical shift in the demand curve can cause such a shift in the price point?

Maybe an econometrist can jump in and explain things, but AFAIC something doesn't add up.

I'm no economer, but if you take a look at production, consumption, and stock of various food commodities over the last 15 years there is one very common occurance. During the early 2000's (1999-2003), production of some food commodities fell well below consumption levels.

For instance, the domestic Chinese rice stocks were shaved nearly 50% in those years after a long period of very little change in available stocks. This depletion was never recovered, even though production paced well with consumption levels afterwards. There just simply wasn't overproduction enough to replace those stocks. But this was not unique to China nor to rice. Similar depletions of global corn and wheat stocks also occured during this time, to be followed by normal production levels. In fact, the US has ramped up significantly the production of corn and wheat.

I think this depletion, along with the depreciation of the dollar, has played a huge part in the price increases. We have a low-interest, stagflationary environment. Couple that with future expectations of global food demand, and it makes sense to invest in food commodities. Or any commodity for that matter. Nobody wants to keep their money as cash, so where else does one go to investment?


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