While we're, sort of, on the subject - another Q for you, Fox Chapel Lion...
Am I correct in my understanding that the whole ethanol thing is nothing more than a DC boondoggle and welfare for the Midwest farm lobby? I've heard that it takes almost as much energy to produce a given quantity of ethanol as is derived from burning it...and the idea of turning food into fuel (on a planet with starving people) just seems wrong.
Yours is an opinion shared with many people, EB.
To the best of my ability I'll try to stick to the facts as I understand them and anybody reading can draw their own conclusions.
In order to make ethanol you need feedstock with a lot of sugar. Corn has lots of sugar. It's easy to grow and you have an abundant supply that is cheap. That is why it's used. It would be awesome to be able to ferment corn stalks, weeds, switchgrass and all that trash - problem is nobody has worked out the chemistry yet to make it work on a commercial scale that is cost-competitive vs grain.
As for energy balance, studies have tried to add it all up - how many BTU to plant it, fertilize it, cultivate it, harvest it. That takes a lot of diesel and a lot of agrichemicals (which also need manufactured and moved around). Then you load it onto a train and haul it to the ethanol distillery. Now clean it, crush it, mash it, distill it, yadda yadda yadda. Load it onto a rail car or a truck and haul it off somewhere - maybe hundreds of miles. Ethanol absorbs water by the way so you cannot put it into the pipeline system.
Now, you have it at the Terminal, you have to tank it, take care of it, and then add it to base gasoline, LOWERING the BTU content of each blended gallon.
So is it a net energy loser? You tell me. Some say it is energy-positive, others say the more you make, the further you go in the hole energy-wise.
Now all that said, ETOH certainly has some good properties, make no mistake. Yes it is 100% renewable - you can always grow more corn. It is extremely clean burning - it's good for pollution and good to clean out the innards of your fuel system and engine. It has outstanding octane properties. It's cheaper than gasoline (usually). The corn residue is processed into a product called DDG - Dried Distiller's Grains - and sold as cattle feed. It's actually pretty good stuff - the protein is concentrated and all the sugar is taken out. Byproduct sales lower your total costs and increase your margin.
Of course the entire enterprise is heavily politicized and lobbied to a fare-thee-well. There is a hell of a lot of people and a lot of livelihoods involved with it. You got farm subsidies, fuel taxes, EPA pollution regs, RIND Blending Credits, agribusiness, railroads, barge companies, trucking companies, chemical companies, refiners, fuel marketers, automakers, agricultural finance, insurance - everybody has their own interests to protect. And all their interests conflict.