Fuel ethanol contributes to the fight against global warming because it is produced from renewable resources. The process of cultivating the crops used to make fuel ethanol absorbs CO2 from the atmosphere, and the process of combustion of the fuel when used releases this CO2 back into the atmosphere.
As a whole, however, fuel ethanol is not 100% CO2-neutral because fossil fuels are used at a number of stages of the cultivation process (e.g. fertilizer, diesel) as well as to power the ethanol plant (natural gas) and to transport the ethanol to the refinery. Generally speaking, EU-produced ethanol based on wheat or sugar beet produces 40 to 60% less greenhouse gas emissions than gasoline. For cellulosic ethanol, which is currently being developed by Nedalco, that figure is expected to be in the 60-80% range. This means considerable potential savings in the transport sector, a sector with very few alternatives to conventional fuels at present. Cars running on electricity and hydrogen are still years away from large-scale commercial introduction. Moreover, the road transport sector is not only one of the three largest sources of CO2 emissions today (see graph), but is also expected to be responsible for more CO2 emissions increases than any other sector, including industry. Road transport must be addressed immediately in order to seriously combat global climate change. While biofuels are not the only answer, they are an effective solution and provide a vital means for tackling this issue in the short term.
The EU currently covers 98% of its transport fuel needs with imports from third world countries, in many cases from politically and economically volatile regions of the world. By contrast, the United States currently imports only 60% of its transport fuel. Domestic biofuel production will reduce the EU’s heavy dependency on imports of crude oil and fuels.
By using fuel ethanol, consumers can directly contribute to more sustainable car use. Fuel ethanol can be blended with gasoline at a ratio of approximately 1:9 without requiring any technical modifications to the engine and without any major changes in fuel ethanol transport or supply logistics (unlike other alternative fuels, such as hydrogen).
Fuel ethanol can also be used as a fuel at much higher percentages. The United States, Canada, Brazil and Sweden all now have cars running on E85 (85% bioethanol to 15% gasoline).
Fuel ethanol offers a high-quality, high-octane fuel for exceptional engine performance and reduced emissions. Ethanol has been used in cars since Henry Ford's 1908 Model T, which he designed to run on alcohol. Trillions of miles have been driven on ethanol-blended fuel since 1980, and several national and international auto racing teams even prefer ethanol because of its high octane levels and outstanding performance. Starting in 2007, the Indy Racing League (home of the Indianapolis 500) began using 100% ethanol instead of methanol as its official race fuel.