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Ethanol industry says it is 'maxed out'
Posted: 07.09.2010 at 4:08 PM
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The ethanol industry says big government, big oil, myths, and untruths are keeping it from becoming popular and in demand.

POET Biorefining in Caro invited NBC25 to visit its plant and see what's stifling it's business.

Ethanol producers say more people would use the product if government restrictions were removed.

Right now, every gallon of gasoline you pump actually contains 90% gasoline and 10% ethanol.

Ethanol producers say the Environmental Protection Agency restricts it from blending more in.

David Gloer, general manager of POET Biorefining in Caro, says "Because of the 10% blending limitation, the ethanol industry is maxed out. We can't sell any more ethanol."

Ethanol producers say, they're also battling what they call "untruths" and "myths" saying the perception is that ethanol is not as cost effective as gas.

Gloer says, "They have to look at the cost per mile, not the cost per gallon. If ethanol is substantially cheaper than gasoline and you get slightly lower has mileage, it's still costing you less."

The ethanol industry says the reason why it's product isn't selling and expanding is because politicians are naive on the topic, and that big oil is shutting them out."

Gloer says, "The oil industry doesn't like us. Every gallon that we sell is one less than the oil industry is hoping to sell."

That's why, ethanol producers say, it's difficult to find E-85 pumps.

Critics say it cost more to produce ethanol by cultivating, planting, harvesting, and transporting the product. Supporters say ethanol would not be profitable it that were the case.

Ethanol producers say, if restrictions stay in place the research and development of ethanol from corn cobs, corn plants, and switch grass will grind to a halt.

Critics say, the market simply isn't demanding ethanol regardless of any restrictions or subsidies.

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