Ethanol Craze Cools As Doubts Multiply

Claims for Environment, Energy Use Draw Fire; Fighting on the Farm

The MSM seems to be waking up to the ethanol scandal — the WSJ [$$] in this case:

Little over a year ago, ethanol was winning the hearts and wallets of both Main Street and Wall Street, with promises of greater U.S. energy independence, fewer greenhouse gases and help for the farm economy. Today, the corn-based biofuel is under siege.

In the span of one growing season, ethanol has gone from panacea to pariah in the eyes of some. The critics, which include industries hurt when the price of corn rises, blame ethanol for pushing up food prices, question its environmental bona fides and dispute how much it really helps reduce the need for oil.

A recent study by the Organization for Economic Cooperation and Development concluded that biofuels “offer a cure [for oil dependence] that is worse than the disease.” A National Academy of Sciences study said corn-based ethanol could strain water supplies. The American Lung Association expressed concern about a form of air pollution from burning ethanol in gasoline. Political cartoonists have taken to skewering the fuel for raising the price of food to the world’s poor.

Last month, an outside expert advising the United Nations on the “right to food” labeled the use of food crops to make biofuels “a crime against humanity,” although the U.N. Food and Agriculture Organization later disowned the remark as “regrettable.”



New and bigger ethanol plants, spurred by money from investors far from the Corn Belt, have contributed to production capacity that’s expected to approach 12 billion gallons next year. But annual U.S. demand stands at just under 7 billion gallons.

So it’s easy to see why the industry supports the Senate version of pending energy legislation, which includes a requirement that gasoline blenders use 36 billion gallons of renewable fuels by 2022. Up to 15 billion gallons of this would come from corn-based ethanol. The rest would come from cellulosic ethanol — an industry that now barely exists — or other fuels. A similar bill passed in the House has no such provision.

Mr. Dinneen, who has been lobbying on ethanol so long he’s known as the “reverend of renewable fuels,” says he’s “reasonably confident” Congress will raise the ethanol mandate. He says he’s talking with the military, labor groups, Southern black churches and others about how ethanol can help them. “We’ve got to build the biggest, baddest coalition we can.”

Baddest coalition indeed! Rather than “a crime against humanity” I would just say “stupid” — a fair categorization of most everything that masquerades as a U.S. energy policy.

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