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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 32.71+0.6%3:59 PM EST

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From: richardred7/22/2006 12:26:34 PM
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Nebraska Corn Board exec answers ethanol critics
Friday, July 21, 2006, 3:20 PM

by Peter Shinn

Audio related to this story

Nebraska Corn Board Executive Director Don Hutchens says he’s been dealing a lot lately with ethanol industry critics. He says one of the issues that has cropped up in the last few weeks is a controversy over how much water it takes to produce ethanol.

Hutchens says it’s true that it takes about three gallons of water to produce a gallon of ethanol. But Hutchens says his staff researched how much water it takes to refine a barrel of oil, and found it takes 1,561 gallons to do so.

And Hutchens says the amount of water required to produce ethanol is likely to decrease as ever-more technically advanced new production facilities come on line. “I think each new plant becomes more efficient in its use of water, and each new plant finds way to get more ethanol out of each bushel of corn,” he says.

And that isn’t the only ethanol-related issue Hutchens has been dealing with lately. He says he’s also been answering critics who say corn use for ethanol will leave little or none for livestock production, and those who say a collapse in global energy prices will cause the U.S. ethanol industry to implode.

Hutchens notes that ethanol production itself generates high-protein feed in the form of dried distillers grains. “It’s a great feed product.” he says. “Our cattle industry in Nebraska really likes it. And quite frankly, we’d sure like to grow our cattle industry a little more to take advantage of the increasing volumes of distillers grains we’re going to have.”

Hutchens also says there’s no evidence at this point that global petroleum markets are headed lower. “They can look into their crystal ball and wish and hope,” says Hutchens. “But at that current time it sure doesn’t appear we’re going to see our dependence on oil slow down much, especially with the supply and demand situation we have.”

According to Hutchens, ethanol’s critics are simply overlooking its tremendous benefits. “We ought to celebrate the fact that the U.S. and the Midwest see some great opportunities for renewable fuels to be part of the solution of our demand for imported crude,” Hutchens says.
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