Ethanol: Fuel Of Future Or Quickly Passing Fad?

June 17, 2009 - 11:00pm

Debate Rages In Denver As International Ethanol Workshop Comes To Town

Russell Haythorn, 7NEWS Reporter

WINDSOR, Colo. -- Two years ago at the Fuel Ethanol Workshop in St. Louis, or FEW, it was standing-room only.

Wednesday, at the same workshop in Denver, it wasnít so crowded.

The industry with so much promise is struggling as several companies, including one of the largest, are bankrupt.

The question is still: fuel of the future, or quickly passing fad?

Ethanol was intended as a way to reduce U.S. dependence on foreign oil.

But some say ethanol has lost its luster because of financial and environmental costs.

Once touted as the fuel of the future, corn-based ethanol has recently come up against heavy criticism.

ìFood verses fuel, energy use, indirect land-use changes,î said Dan Sanders, general manager of Front Range Energy in Windsor.

Sanders and his father built the state-of-the-art ethanol plant in Windsor from the ground up.

ìThis plant here, which is very near and dear to my heart, was built on private equity, private funding. No government subsidies, no government guarantees,î said Sanders.

Many argue the ethanol industry is heavily subsidized.

ìWe receive tax incentives like every other industry,î said Sanders. ìNot subsidies.î

Despite an industry struggling, the Sandersí plant is still vibrant, converting each kernel of corn into four products.

ìWe make corn ethanol here, as well as distillerís grain, CO2 and syrup,î said Sanders

The distillerís grain, also known as wet cake, goes right back into the food supply as feed for cattle. The corn comes by rail from places like Iowa, Nebraska and Minnesota ñ and by truck from Colorado growers.

ìDuring local harvest we are a 100 percent local truck market,î said Sanders.

All this week, the international Fuel Ethanol Workshop is in Denver, bringing the ethanol debate to the forefront yet again.

Sanders said despite the critics, he believes ethanol is here to stay. And he believes it might be used by all of us one day.

ìEthanol is the only available product right now to be blended with gasoline that cleans up tailpipe emissions,î said Sanders. ìWeíre spending $150 billion in military operations overseas to secure the oil supply industry and yet ethanol is home grown and the money stays here.î

ìWeíre producing 10 billion gallons of ethanol right now. Thatís 10 billion gallons of gas weíd otherwise have to purchase,î said Sanders. ìWeíre doing fine. Weíre going to be here producing American-made ethanol.î