GoodFuels

Reflections on 2008

Some might say 2008 was a bad year for ethanol, what with the heightened criticism, price volatility, bankruptcies and such.

However, there were some very notable highlights that at least offset the bad news, if not outweigh it.

First and foremost would be the EPA decision to deny the governor of Texas a partial waiver of the Renewable Fuels Standard (RFS). This was a major victory for the ethanol industry in the first test of the RFS. In addition, it was a major blow to the food versus fuel critics, as the EPA ruling noted that a “waiver would have no impact on ethanol production volumes in the relevant time frame, and therefore no impact on corn, food, or fuel prices.”

Secondly, despite all the challenges faced by the industry this year in the form of market volatility, ethanol producers stepped up to the plate and actually exceeded the RFS goal of nine billion gallons this year. According to the Renewable Fuels Association, ethanol production will top ten billion gallons in 2008.

Another high point for ethanol was the presidential election, in which renewable energy was a major campaign issue. The ethanol industry played an active role in both the Democratic and Republican national conventions, drawing attention to the importance of renewable fuels in helping to make the country less dependent on foreign oil.

The number of E-85 pumps increased by about 40 percent nationwide in 2008, getting close to the 2000 mark at this point. In addition, several states began blender pump initiatives giving flexible fuel vehicle owners the choice of filling up with E20, E30, E40 or E85.

Finally, development of cellulosic technology in 2008 continued to bring the next generation of ethanol closer to reality.

All in all, not a bad year - here’s to an even better 2009!