2 new ethanol plants give industry boost

Two new ethanol plants opened last week, raising the number of ethanol-producing plants in Indiana to eight. The openings will help Indiana become more secure and self-reliant in the fuel industry, Sen. Richard Lugar said.\n“Biofuels offer the dual opportunity for an economic revitalization of rural America and a solution to a serious national security problem,” Lugar said in an official statement.\nEthanol is produced through a fermentation and distillation process using corn and other grains, according to the Web site for the Renewable Fuels Association. It is used to produce E85, a fuel composed of 85 percent ethanol and 15 percent gasoline. The capacity of ethanol production continues to grow by billions of gallons per year, according to Chris Hurt, an economics professor at Purdue who specializes in agriculture. He said proposed federal legislation would double current production by next summer. \nHurt, though he finds ethanol promising, recognizes its limitations.\n“Even if we used all of our corn in the U.S. for ethanol, that would only support about 15 percent of our nation’s fuel needs,” he said. \nHurt is also concerned that the industry, caught up in a “gold rush mentality,” could overproduce, exceeding demand.\nAmericans use roughly 830 million gallons of oil daily, according to the U.S. Department of Energy’s Web site. About 5 percent of those energy needs are met using ethanol, Hurt said.\nSome think the availability of the product is strong enough that consumers will not feel the pinch.\n“There’s plenty of corn to meet the ethanol needs and the other uses of corn,” said Mark Walters, director of biofuels programs at the Indiana Corn Growers Association. “Ethanol plants will continue to draw on the Indiana corn crop and not negatively impact the farmers’ abilities to supply it.”\nEthanol developers sometimes meet opposition from community members where they plan to build.\nJerry Greiner is a member of Blue River Neighborhood Association, a group in New Castle, Ind., that is opposed to constructing a refinery there. He said he lives across the street from the proposed site.\n“I’m not against ethanol plants, but you don’t have to have them in someone’s backyard,” he said.\nBut Greg Noble, the general manager at the new ethanol plant in Jay County, said he thought the public reception was upbeat.\n“Judging from the turnout at the grand opening, I’d say we had a very positive response,” he said. He added that about 3,000 community members attended the event.