Ethanol supporters are encouraged by two developments on the national scene Tuesday.
The Environmental Protection Agency released its analysis of the renewable fuels standard, which calls for more use of fuels. The agency found that corn-based ethanol emits 16 percent less greenhouse gases than gasoline.
Gary Marshall, chief executive officer of the Missouri Corn Growers Association, said the EPA study takes some of the political and economical factors out of the ethanol debate.
“We’re actually going to put science behind the decisions we’re making,” he said.
The EPA’s analysis also considered the potential impact of more land being planted to crops at the expense of forests and other vegetations, as well as growing worldwide demand for biofuels.
On the other hand, the land use factors could cause environmental damage, the agency found.
Ethanol factories could also receive a boost from federal stimulus funds. Missouri has six ethanol plants, including Golden Triangle Energy in Craig and Lifeline Foods in St. Joseph.
“They’re hurting just like the entire U.S. economy,” Mr. Marshall said of the plants.
On Tuesday, President Obama announced the creation of a Biofuels Interagency Working Group between the Department of Agriculture, Department of Energy and the EPA.
The announcement included more loan guarantees and economic stimulus money for biofuels research. Obama also told the Agriculture Department to find ways to preserve biofuel industry jobs.
Ethanol producers have had difficulty accessing capital, Mr. Marshall said. Lower fuel costs have also cut into the bottom line.
“As gas prices go up, ethanol will probably follow,” Mr. Marshall said. “Hopefully they’ll be able to ride out the economic climate.”
Susan Mires can be reached
at susanm@npgco.com.