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    Ethanol Advantages and Disadvantages

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    Alfredo E Diaz Jacome
    The document discusses the advantages and disadvantages of using ethanol from the consumer viewpoint. It summarizes consumer perceptions of ethanol including concerns about foreign oil imports and climate change. However, consumers are also motivated by cost and availability of gasoline. While ethanol provides environmental benefits by reducing emissions and oil dependence, it also has disadvantages like higher costs for consumers and requiring more frequent refueling due to its lower energy value. The document concludes that governments should help address costs through subsidies and limit ethanol blends to 10% or less until technical issues are resolved.

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    © All Rights Reserved
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    Ethanol Advantages and Disadvantages

    Uploaded by

    Alfredo E Diaz Jacome
    67 views26 pages
    The document discusses the advantages and disadvantages of using ethanol from the consumer viewpoint. It summarizes consumer perceptions of ethanol including concerns about foreign oil imports and climate change. However, consumers are also motivated by cost and availability of gasoline. While ethanol provides environmental benefits by reducing emissions and oil dependence, it also has disadvantages like higher costs for consumers and requiring more frequent refueling due to its lower energy value. The document concludes that governments should help address costs through subsidies and limit ethanol blends to 10% or less until technical issues are resolved.

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    Ethanol Advantages and Disadvantages

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    The document discusses the advantages and disadvantages of using ethanol from the consumer viewpoint. It summarizes consumer perceptions of ethanol including concerns about foreign oil imports and climate change. However, consumers are also motivated by cost and availability of gasoline. While ethanol provides environmental benefits by reducing emissions and oil dependence, it also has disadvantages like higher costs for consumers and requiring more frequent refueling due to its lower energy value. The document concludes that governments should help address costs through subsidies and limit ethanol blends to 10% or less until technical issues are resolved.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    67 views26 pages

    Ethanol Advantages and Disadvantages

    Uploaded by

    Alfredo E Diaz Jacome
    The document discusses the advantages and disadvantages of using ethanol from the consumer viewpoint. It summarizes consumer perceptions of ethanol including concerns about foreign oil imports and climate change. However, consumers are also motivated by cost and availability of gasoline. While ethanol provides environmental benefits by reducing emissions and oil dependence, it also has disadvantages like higher costs for consumers and requiring more frequent refueling due to its lower energy value. The document concludes that governments should help address costs through subsidies and limit ethanol blends to 10% or less until technical issues are resolved.

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    © All Rights Reserved
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    You are on page 1of 26
    At a glance
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    The key takeaways are that the document discusses the advantages and disadvantages of using ethanol from a consumer perspective, including environmental impacts, costs, and technical dimensions.

    Some of the disadvantages of using ethanol mentioned are negative environmental and health impacts from aldehydes, and higher costs for consumers.

    Some of the advantages of producing and using ethanol mentioned are positive impacts on exhaust emissions through reduced emissions, and technical benefits like high octane content and being less poisonous than alternatives.

    Advantages and Disadvantages

    of Using Ethanol:
    The Consumer Viewpoint
    Ngo Anh-Thu
    Graduate student
    and
    Gale West
    Professor, Director of Consumer
    Science Programs
    AIEA2 International Conference
    and WORKSHOP of the CAES
    Laval University
    Québec, Québec, August 24, 2004
    On today’s menu…..

    Introduction
    Brief review of consumer perceptions
    Disadvantages of using ethanol
    Advantages of producing & using
    ethanol
    Conclusions & strategic implications
    Why ethanol in Canada?

    The Kyoto Protocol commitment:


    - by 2012, Canada has to return to 94% of its
    1990 GHG emission level.

    Canadian greenhouse emissions:


    - 73% from fossil fuel combustion;
    - 25% from on-the-road transportation.
    Consumer perceptions today

    In Canada
    - 86% of the population is concerned by the level
    of foreign oil imports & wants to reduce this
    dependence to foster national security;
    - 80% of the population is aware of climate
    change;
    - 78% of Ontarians agree to buy ethanol blend IF
    the price of the ethanol blend equals that of
    gasoline.
    - 72% of Ontarians support a mandate to blend
    ethanol into gasoline;
    But what are the alternatives?

     Future energy choices of U.S. consumers


    Best fuel for future Worst fuel for future
    - Electricity 52% 15%
    - Ethanol 21% 28%
    - Hydrogen 15% 27%

     Future choices for reducing oil imports


    - Making energy efficient vehicles 48%
    - Tax rebates for higher efficiency vehicles 24%
    - Higher taxes on less efficient vehicles 11%
    Practical consumers are

     Not that altruistic!


     They are mostly concerned with:
    - Traffic congestion (34%)
    - Availability and/or price of gasoline (28%)
    - Global warming (14%)
    - Local air pollution (12%)
     However, climate change and air pollution are
    important to some consumers.
    Disadvantages of ethanol
    Negative environmental and
    health impacts of ethanol

     Aldehyde, a function of ethanol volume, is a threat


    to nose, eyes, throat & possibly causes cancer.
     At volumes below 23% ethanol, aldehyde
    emissions can be well controlled by the catalytic
    converter:
    Gasoline Gasohol Ethanol
    Aldehyde (0% ethanol) (22% ethanol) (100%)
    Before converter 100% 120% 450%
    After converter 100% 100% 120%
    Negative cost considerations to
    consumers
    (Fuel Economy Guide 2004, U.S. Department of Energy)

     E85 costs 33% more to consumer’s annual budget:

    Fuel use Annual fuel cost


    Chrysler E85 $1323 U.S.
    (Sebring convertible) gasoline $ 900 U.S.
    Dodge (~ Mercury) E85 $1323 U.S.
    (Stratus 4 door) gasoline $ 876 U.S.
    GMC Sports Car E85 $1874 U.S.
    (1500 Yukon 2 WD) gasoline $1312 U.S.
    Negative cost considerations
    (Canada)

     In Quebec, E5 is available at certain service


    stations.
    Regular gasoline E5 (5% ethanol blend)
    88.3 ¢/litre 91.3 ¢/litre

     In Canada, since the cost of making ethanol is


    still high, ethanol prices at the pump are a
    function of % ethanol in the blend.
    Negative technical dimensions

     Driving ability of ethanol is lower.


    - Lower per litre energy value (EV);
    - Takes more to drive the same distance;
    - Consumers have to fill their cars more often;
    - And they have to pay more for ethanol fuel.
     When blended above E10, consumers :
    - Driving regular cars have to pay at least $1,200
    U.S. to have their engines adapted; and
    - Have to drive extra distances to special service
    stations to buy ethanol.
    Negative technical dimensions
    (cont.)
     Ethanol can absorb water & if water enters the fuel tank
    - It dilutes ethanol, reducing its value as a fuel;
    - It causes problems with corrosion and phase separation
    in the gasoline mixture.
     Ethanol dissolves almost everything.
    - It absorbs and carries dirt inside the fuel lines and fuel
    tank, thus contaminanting the car engine system.
     Ethanol is rich in octane content.
    - It is highly flammable and explosive compared to
    gasoline.
    - It requires more attention to handle in daily life.
    Advantages of ethanol
    Postive environmental impacts:
    Life cycle analysis
    (National Renewable Energy Laboratory, U.S. Department of Energy)

    Agri- product
    transport
    Positive health and political
    impacts
     Health impacts
    Replaces bad gasoline additives (MTBE and lead),
    which are sources of surface and ground water
    contamination, and dangerous to human health;
     Political impacts to consumer-voters
    - It potentially replaces crude oil, which is a finite,
    non-renewable resource;
    - It can be domestically produced, thus reducing
    dependence on oil imports;
    - It can potentially cut oil import costs.
    Positive socio-economic impacts
     Ethanol uses agri-products as a feed-stock;
     It is a renewable source of energy, which can
    replace fossil fuel in the future;
     It increases value added and price of agri-
    products,
     which increases net farm income;
     It creates more jobs in the rural sector;
     Strengthens rural economies;
     It can potentially reduce government subsidies to
    the farm sector.
    Positive impacts on greenhouse gases

     In Canada today, compared to gasoline,


    - E10 can reduce GHG by up to 3.9%;
    - E85 can reduce GHG emissions by 37.1%;

     If ethanol production can be expanded to 1


    billion litres per year by 2010,
    - E10 can reduce GHG by up to 4.6%.
    - E85 can reduce GHG emissions by 44.5%;

     With respect to the Canadian Kyoto


    commitment
    - These figures represent approximately 0.8 - 1.0%
    of the total reduction required.
    Positive impacts on exhaust emissions

     How ?
    - Ethanol, richer in octane, promotes more complete
    combustion of gasoline thus reducing exhaust
    emissions.
     Without catalytic converter, compared to gasoline:
    - Using E6 lowers CO emissions by 27%; and
    - Also lowers other harmful emissions (ex., HC, PM,
    VOC & SOx).

     However, with the catalytic converter :


    - Almost no difference in exhaust emissions between
    gasoline and ethanol blends.
    Positive technical dimensions

     High octane content gives particular value to


    consumers using high performance engines.
     When used as a gasoline additive, ethanol is
    - not as poisonous as MTBE and lead,
    - a soluble deposit-controler, removing
    impurities in the fuel system and placing them
    in the filter;
    - an anti-icer, preventing fuel-line freeze up in
    the winter, and requiring less time (and
    energy) to start the vehicle;
    - richer in octane, an anti-oxidant to reduce
    gum formation in stored petrol.
    Conclusions
    and strategic implications

     Given increasing consumer interest, there is


    a definite need to inform consumers of the
    advantages of ethanol.
     Changing consumer choice to ethanol can:
    – reduce dependence on foreign oil;
    – reduce local pollution and clean the
    atmosphere;
    – help respect Kyoto GHG commitments;
    – slow climate change;
    – provide a more renewable fuel source.
    Conclusions
    and strategic implications (cont.)

    To overcome disadvantages (higher price,


    lower driving ability), the Canadian
    government should in the short run :

    – Provide price subsidies and/or consumer


    tax credits (as in Brazil, US, EU, China);

    – Limit ethanol blends to E10 or less, to


    avoid massive engine reconstruction.
    Conclusions
    and strategic implications (cont.)

    In the long run, the government should


    – promote technical research in ethanol
    production;
    – instate an education campaign to inform
    consumers of the purpose and benefits of
    ethanol.
    The automobile industry will react to growing
    future demand for ethanol by producing new
    car engines.
    Merci beaucoup
    de votre attention!!
    Technical definitions

     In vehicles, ethanol can be used as:


    - a gasoline additive (blended into gasoline at
    10% or less);
    - gasohol (blended at high volume of 20% to
    85%); or
    - a high blend ethanol (blended at 85% up to
    100% pure ethanol).
     Technical limit :
    Regular cars can handle up to 10% ethanol
    without engine reconstruction.
    Cost considerations to consumers
    (Fuel Economy Guide 2004, U.S. Department of Energy)

     E85 costs 33% more to consumer’s annual budget:

    Fuel use Annual fuel cost


    Chrysler E85 $1323 U.S.
    (Sebring converible) gasoline $ 900 U.S.
    Dodge (~ Mercury) E85 $1323 U.S.
    (Stratus 4 door) gasoline $ 876 U.S.
    GMC Sports Car E85 $1874 U.S.
    (1500 Yukon 2 WD) gasoline $1312 U.S.
    Chevrolet Sports Car E85 $1874 U.S.
    (C1500 Silverado 2WD) gasoline $1401 U.S.

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