Aloclean –A Mix Of Ethanol & Gasoline

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There has been a quiet (r)evolution in this country for

the last 40 years which most Americans haven’t  heard

about: The evolution toward an organic fuel,  which

can be grown right here in the United States, and

which  can support the farming community and lower

the country’s imports by billions of dollars per year.

It’s called “Ethanol.”

The Ethanol Movement started in the late 80s when there was a shortage of Gasoline and people

were lined up at the Gas Stations to buy gasoline.

.

1. . 1. United States   15,800,000,000 Gallons Per Year.

• 2. Brazil 14,500,000,000 Gallons Per Year

  Brazil is the world’s second largest producer of Ethanol Fuel. Brazil and the United States have led

  the industrial production of ethanol fuel for several years, together accounting for 85 percent of the

  world’s production in 2017. Brazil produced 26.72 billion liters (7.06 billion representing 26.1 percent

  of the world’s total ethanol used as fuel in 2017.

  .

  Brazil’s 40-year-old ethanol fuel program is based on the most efficient agricultural technology for

  sugarcane cultivation in the world, uses modern equipment and cheap sugar cane as feedstock, the

  residual cane-waste is used to produce heat and power, which results in a very competitive price

  and also in a high energy Ballance (output energy/input energy), which varies from 8.3 for average

  conditions to 10.2 for best practice production. In 2010, the US EPA designated Brazilian sugarcane

  ethanol as an advanced Biofuel due to its 61% reduction of  total  life cycle of greenhouse gas emissions.

  .

  There are no longer any light vehicles in Brazil running on pure gasoline. Since 1976 the government

  made it mandatory to blend anhydrous ethanol with gasoline, fluctuating between 10% to 22%. and

  requiring just a minor adjustment on regular gasoline engines. In 1993 the mandatory blend was fixed

  by law at 22% anhydrous ethanol (E22) by volume in the entire country, but with leeway to the Executive

  to set different percentages of ethanol within pre-established boundaries. In 2003 these limits were set

  at a minimum of 20% and a maximum of 25%.  Since July 1, 2007, the mandatory blend is 25% of

  anhydrous ethanol and 75% gasoline or E25 blend,  The lower limit was reduced to 18% in April 2011 due

  to recurring ethanol supply shortages and high prices that take place between harvest seasons. By mid

  March 2015 the government raised temporarily the ethanol blend in regular gasoline from 25% to 27%.

  .

  The Brazilian car manufacturing industry developed flexible-fuel vehicles that can run on any

  proportion of  gasoline  (E20-E25 Blend)and hydrous ethanol (E100). Introduced in the market in 2003,

  flex vehicles became a commercial success, dominating the passenger vehicle market with a 94% market

  share of all new cars and light vehicles sold in 2013. By mid-2010 there were 70 flex models available in

  the market and as of December 2013, 15 car manufacturers produce flex-fuel engines, dominating all

  light vehicle segments except sports cars, off-road vehicles and minivans.  The cumulative production

  of flex-fuel cars and light commercial vehicles reached the milestone of 10 million vehicles in March

  2010,  and the 20 million-unit milestone was reached in June 2013.  As of June 2015, flex-fuel light-duty

  vehicle cumulative sales totaled 25.5 million units, and production of flex motorcycles totaled 4 million

  in March 2015. The success of “flex” vehicles, together with a mandatory E25 blend throughout the

  country, allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-

  powered fleet in February 2008.  In terms of energy equivalent  sugarcane ethanol represented 17.6% of

  the country’s total energy consumption by the transport sector in 2008.

• 3. Eurpean Union 1,500,000,000 Gallons Per Year

  Click Here To See Production Chart

  A recent report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information

  Network discusses the current use of biofuels in the European Union and the potential  increased

  use in the future.  According to the report, the EU has set a 10 percent target for renewable energy

  use in transport for 2020.  That target increases to 14 percent by the year  2030, with more advanced

  biofuels counting double to the target.

  .

  Taking double-counting into account, biofuels accounted for 7.1%  of energy use in transportation

  last year and are expected to increase to 7.3 percent this year. The report indicates the increase is

  expected to be supported by increased imports.

  .

  Data included in the report shows that fuel ethanol production reached approximately 5.443 billion

  liters   (1.44 billion gallons)  in the EU last year was up from 5.38 billion liters in 2017. EU fuel ethanol

  production is expected to increase to 5.505 billion liters.

• 4. China 875,000,000 Gallons Per Year

  Read More  “Todays Energy”

  U.S. Producers Come To The Rescue As China Begins To Import Ethanol

  Planned ethanol mandates have mostly been reduced to “suggestions” across China’s provinces, but

  increasing ethanol demand still can’t be met by Chinese domestic producers. U.S. ethanol exports to

  China will fill the gap.

  .

  Since 2017 Beijing has had big plans to mandate a U.S. style 10% ethanol blend into its gasoline pool;

  the original target date was 2020. Domestic logistics, weather, the trade war, and COVID all got in

  the way of an actual mandate implementation, but today demand for ethanol continues to grow in

  lock-step with China’s massive gasoline powered motor pool, the world’s largest.

  .

  By 2017, years of government support to corn farmers resulted in a surfeit of corn inventories

  across China, and Chinese authorities needed a plan to deal with the situation. Corn is used to

  make ethanol.  Ethanol blended into gasoline helps reduce the need for fuel imports. Additionally,

  the burnable fuel (ethanol) created from corn and other agricultural products can be net carbon

  neutral, depending upon how it’s grown, which helps combat environmental pollution. Reduce

  reliance on energy imports, support farmers by finding a use for their crop, and clean up the air

  and environment – all goals that can be achieved by adding ethanol into a gasoline pool; it was

  an easy call for China’s leadership to adopt an ethanol policy.

  ,

  But it takes time (1-2 years) to plan, design, and build ethanol plants, blending facilities, and

  distribution infrastructure, which is why Chinese authorities originally decided that ethanol

  blending mandates wouldn’t be imposed until 2020. The timetable seemed reasonable, but

  several things got in the way of China’s planned 2020 ethanol mandate rollout.

  ,

  Next, China couldn’t build ethanol plants and the infrastructure needed to distribute ethanol

  quite as fast as it had hoped; private analysts believe China has managed to build about 1.2 billion

  gallons per year of ethanol production capacity, give or take a few hundred million gallons.

  Regardless of the actual number, China still can’t produce all the ethanol it needs, leaving the

  United States, the world’s largest producer and exporter of ethanol, as the obvious source to fill

  the gap. But for much of 2018, all of 2019, and some of 2020, the trade war kept Chinese

  importers at bay.

  .

  Chinese traders are notoriously adept at stepping into markets at just the right time, and they

  don’t take small positions when they decide to act. China’s economic recovery is in full swing,

  gasoline usage is on the rise, and ethanol demand is undoubtedly rising too. It’s little wonder

  that ADM revealed in its most recent earnings call that China has been buying ethanol in large

  volumes from the U.S.

  .

  It will take some time for the actual amounts of ethanol purchased by China to be reported by

  official U.S. government sources, which will give some clarity to the situation. But markets will

  react accordingly; ethanol producers should benefit from the increased demand, and perhaps

  higher prices, that China’s ethanol purchases will bring.

• 5, Canada 450,000,000 Gallons Per Year

  TORONTO—For advocates of Canada’s biofuel industry, availability of ethanol at the pump

  is a discouraging statistic.

  .

  In the United States, there are more than 3,000 fueling stations that meet the E85 ethanol

  standard, but in Canada, a country with some 3.6 million vehicles capable of fueling with fuel

  made of as much  as 85 per cent ethanol, there are about as many fueling stations across the

  country as there are fingers on your hand.

  .

  Even if E85 fueling infrastructure was available, many Canadians aren’t even aware that they

  may own what vehicle manufacturers have dubbed a Flex-Fuel vehicle, identified by its yellow gas

  cap. if they were to ever take advantage of the feature, these vehicles could handle highly-oxygenated

  ethanol that can produce about three to four per cent fewer greenhouse gas (GHG) emissions than

  gasoline.

  .

  Despite having capable vehicles, real hurdles lay ahead if Canadian consumers are ever going to

  see alternative fuel infrastructure, benefit from the automotive technology paid for, and be able to

  confidently move away from finite fossil fuels.

  .

  Canada has just 23 ethanol plants, compared to more than 200 in the U.S. Most of Canada’s plants are

  located in Ontario and Quebec along the U.S. border. Despite these plants, which offer total ethanol

  capacity of about 1.6 billion litres per year, according to Thurlow, Canada is often the top export country

  for U.S.-produced corn ethanol. In 2011, for example, U.S. ethanol exports increased 150 per cent,

  accounting for about 1.1 billion litres of the colourless liquid—the same one that’s been used in alcoholic

  beverages since ancient times.

  .

  Canadian ethanol producers, such as those who produce wheat ethanol in Western Canada, appear

  to me missing out. But why? Many experts believe it has to do with the strong U.S. investment in its

  ethanol market, which has left Canadian businesses on an uneven playing field. The U.S. experimented

  with taxing ethanol imports and hugely subsidizing the corn ethanol industry to the tune of 45 cents per

  gallon.

  .

  At about $2.23 per gallon, ethanol is more than a dollar less per gallon than regular unleaded gasoline.

  By early 2015, industry experts predict that the underlying commodity cost in E85 will be roughly 69

  per cent of the cost of regular unleaded.

  .

  Industry looking for incentives For Canadian ethanol production companies like IGPC Ethanol Inc.,

  now is the time for government to help expand the country’s ethanol sector. Company CEO Jim

  Grey wrote to Parliament in August 2014 to point out that North American automakers will soon

  be  mandated to improve fuel economy, with vehicles in Canada required to more than double fuel

  efficiency to the equivalent of 54 miles per gallon (mpg) by 2025.

  .

  In Grey’s letter to the parliamentary finance committee, he wrote, “Consumers need access to the

  same fuels used for vehicle testing in order to take advantage of the new advents in technology

  required by the regulations. If not, consumers will simply be forced to pay additional costs for

  technology that is predicated on fuels that are not available to them. The ultimate result being

  higher cost vehicles with no discernible environmental benefits.”

  ,

  Government-imposed ethanol mandates across Canada average about five per cent. That means

  pump owners are required to mix in that amount of ethanol with standard gasoline. In fact, many

  industry experts believe that gas companies are going above and beyond the mandatory minimum

  in order to help their own bottom line. That’s why Thurlow says Canada needs to raise its minimum

  ethanol blend to at least 10 per cent.

  .

  In its marketing, the CRFA says it wants to encourage “existing pump turnover” and “new market

  entrants” by providing tax incentives to anyone who wants to offer consumers higher ethanol blends.

  The association says ethanol expansion would be a boon for rural Canada’s economy and job creation

  in general.  While some major oil and gas companies are investing in renewable fuels research,

  Thurlow says he doesn’t believe for a minute that these companies want change in Canada.

• 6. Tyland 395,000,000 Gallons Per Year

  The Thai government has promoted biofuels in a comprehensive manner with legislative support

  since 2004 by licensing for the biofuel factories, expanding the number of biofuel stations and

  promoting public relations to give people more confidence in biofuels. The first ethanol product

  in the market was E10. On January 1, 2008, E20 was introduced, and in the third quarter of

  2008, E85 was introduced. Ethanol blended fuels are sold in Thailand as;

  • * Gasohol 91-E10 (10-percent ethanol blended with 90 percent gasoline, octane 91).

  • * Gasohol 95-E10 (10-percent ethanol blended with 90 percent gasoline, octane 95).

  • * Gasohol 95-E20 (20-percent ethanol blended with 80 percent gasoline, octane 95).

  • * Gasohol 95-E85 (85 percent ethanol blended with 15 percent gasoline, octane 95).

  .

  The government has structured oil pricing to make retail prices of gasohol lower than retail

  prices of gasoline, and gasohol with higher ethanol contents is less expensive than gasohol with

  lower ethanol contents. The price subsidies were provided by the State Oil fund making retail

  prices of gasohol 20 to 40 percent cheaper than that of regular gasoline

• 7. Argentina 310,000,000 Gallons Per Year

  Ethanol production in Argentina continues to suffer from the negative market impacts of the

  COVID-19 pandemic, according to a recent report filed by the USDA Foreign Agricultural Service’s

  Global Agricultural Information Network.

  .

  The GAIN report identifies reduced fuel demand, a prolonged domestic recession, and recent policy

  changes as factors limiting Argentine ethanol production this year. Production and use, however,

  are expected to partially rebound from last year’s COVID-19-related lows.

  ,

  Fuel ethanol consumption in Argentina is expected to reach 980 million liters (258.89 million gallons)

  this year, up 28 percent when compared to last year.  According to the GAIN report, a recently passed

  biofuels law sets a minimum blend rate of 12 percent for the country. The law, however, also allows

  the energy secretariat to reduce the blend rate to as low as 9 percent.

  .

  There are currently 22 fuel ethanol plants in Argentina, with a combined nameplate capacity of 1.64

  billion gallons, up from 1.56 billion gallons in 2020. Capacity use is expected to reach 59.8 percent

  this year, up from 52 percent in 2020.

  .

  Molasses is currently the primary fuel ethanol feedstock used in the country, with 1.91 million metric

  tons expected to be consumed this year. An additional 1.225 million metric tons of corn is expected to

  go to fuel ethanol production in 2021.

• 8. India 280,000.000 Gallons Per Year

  India as one of the fastest growing economies in the world continues to experience a high and

  increasing demand of crude oil and petroleum products. Traditionally fossil fuels have been the

  primary source of energy in the transportation sector. However, biofuels have gained significant

  attention in recent years as they have been considered as viable alternatives offering significant

  economic and environmental benefits.

  .

  The Government of India (GoI) and the Oil Marketing Companies (OMCs) are aggressively promoting

  blending of 10 % ethanol in Motor Sprit (petrol) with a view to reduce the carbon footprint and conserve

  foreign exchange by reducing import of crude oil. For the Ethanol Supply Year (ESY) 2019-20, ethanol

  supplies of 172.42 crore litres could be effected by suppliers to Public Sector OMC’s as against the

  requirement of 511 crore litres enabling average 5% ethanol blending in petrol. The Government has

  plans to gradually increase the blending percentage to 20% by the year 2028 for which the ethanol

  requirement is expected to be around 900 crore litres. OMC’s have invited Expression of Interest (EOI)

  for procurement of 457 crore litres of ethanol from various feed stocks sourced from Sugarcane

  (Sugarcane Juice, Sugar Syrup, Sugar, B-Heavy & C-Heavy Molasses) and also from Grains (Rice

  procured from Food Corporation of India (FCI), Maize and Damaged Food Grains) for ESY 2020-21

  against which OMCs have received offers for 330 crore liters only.