Ethanol Bright Spot in Economy

Renewable fuels had a place in the final State of the Union address by President George W. Bush.

To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power. Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases.

The speech also focused on ways to stimulate economic growth in the nation, but RFA president Bob Dinneen notes that ethanol is already helping with both the economy and the environment.

“The emerging ethanol industry in the country is turning environmental stewardship into economic opportunity at a time when our economy desperately needs a shot in the arm. By investing our resources in developing domestic, renewable alternatives to foreign oil, we can begin reducing this nation’s global warming footprint and create jobs and economic activity at home rather than transferring our nation’s wealth to oil-rich countries around the globe. Renewable fuels like ethanol are demonstrating that when it comes to the environment and the economy, it is possible to have it both ways.�

In an overall environment of slowing economic growth the U.S. ethanol industry stands out in sharp contrast. According to a report set to be released in late February from economist John Urbanchuk of LECG, LLC, the American ethanol industry is a job creating engine. The increase in economic activity resulting from ongoing production and construction of new ethanol capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 additional jobs in America’s manufacturing sector — American jobs making ethanol from grain produced by American farmers.