Possible Increase in the Percentage of Ethanol at the Pump

 Just to set things up…Listen to a quote from Jim Sturdevant, Director of Project Liberty, in Scotland, South Dakota associated with POET, the nation’s largest ethanol producer . “There is right now in our nation a 10% regulatory cap which means a gallon of gasoline can be mixed with 10% ethanol. That can go higher without any kind of detrimental effect to engines and automobile companies are with us on this…we just need to increase that cap which will increase then the demand for ethanol which will help the whole ethanol industry.”

 Then there’s John Crockett,  Senior Energy Specialist with the State of Idaho’s Office of Energy Resources “The reason we have 10% ethanol in our gas right now is because it is mandated by the federal government.”

 Apparently the U.S. government is coming around and thinking more clearly about its mandates.  U.S. Ag Secretary Tom Vilsack has said he’s asked the EPA to increase the amount of ethanol that can be blended with gasoline. The Administration is looking to keep the corn-based ethanol industry afloat until cellulosic ethanol is commercialized. Cellulosic ethanol, of course is made from bio-mass which is useless vegetation like corn cobs and wood chips. Ethanol industry experts say those two things go hand-in-hand. That is, a higher blend rate is necessary to ensure the commercialization of cellulosic ethanol.