The bright future of ethanol

By John M. Urbanchuk

A little more than a year ago, Gov. Rendell celebrated the groundbreaking of the first ethanol plant in Pennsylvania. That was before the recession deepened, gasoline prices rode a roller coaster, credit tightened, and most industries were shuttering plants and laying off workers.

Now, after all the economic calamity, construction is continuing on BioEnergy International's new plant in the central Pennsylvania community of Clearfield. When the $270 million facility opens in January, it will be capable of producing 108 million gallons of corn-based ethanol and an additional 15 million gallons of cellulosic ethanol, which is produced from plant matter such as wood pulp and agricultural wastes.

The Clearfield facility will be one of the nation's 10 largest ethanol plants. But what will be the prospects for ethanol - and for our country's quest for a clean, renewable, domestic energy source?

Despite the periodic and premature obituaries written for the U.S. ethanol industry, it seems poised for further growth, innovation, and success. That's good news not only for the Clearfield plant and its prospective employees, but for every American who wants an alternative to costly, carbon-emitting oil imported from unstable regions with hostile governments.

Last year, in the midst of the worst economic news in a generation, the U.S. ethanol industry continued to expand its production, selling a record nine billion gallons - a good performance in the worst of times.

As important, the ethanol industry continues to invest and innovate. The groundbreaking in Clearfield was part of a national trend: Last year, the industry opened 31 U.S. plants and added 240,000 jobs.

Meanwhile, the industry is developing technologies for producing grain-based ethanol and pioneering the next generation of cellulosic ethanol. With ethanol made from corn, new technologies are producing more and better byproducts that can be used to feed livestock, while making the production process more efficient. And new facilities like the Clearfield plant are developing workable ways to produce ethanol from sources as varied as wood chips, grasses, corncobs, and municipal waste.

The ethanol industry has survived four recessions over the past 30 years, as well as the dramatic increase in corn prices in 1995. In the near future, the beginning of an economic recovery, reduced corn prices, increased oil prices, and policies favorable to renewable fuels can be expected to contribute to the growth of this remarkably resilient industry.

Most of all, the U.S. ethanol industry will expand because our nation has no alternative to developing alternative energy sources. With oil contributing to climate change and dependent on overseas dictators, a renewable, non-polluting, American-made energy source is well worth developing.

In these difficult times, optimism about any industry may seem like an act of faith. If I told you that the ethanol industry can see the light at the end of the tunnel, you might be tempted to respond that it's probably an oncoming car. Maybe so, but I'd wager that the car will be fueled by American ethanol.