Note:  The State of the Ethanol Industry speech can be seen live on www.DomesticFuel.com at 8:00 a.m. Eastern time. 

(February 16, 2010)  Orlando – After a tumultuous end of 2008 and beginning of 2009, the American ethanol industry converges this week in Orlando amidst an improving economic climate and outlook of increasing opportunity and optimism.

In his annual State of the Industry address, Renewable Fuels Association President and Chief Executive Officer Bob Dinneen recognized the recent difficulties experienced by the industry, but also reflected on the tremendous gains the ethanol industry has achieved in the past decade and the bright future the industry can achieve.

Dinneen said, “I can say, with confidence and conviction, that the state of the U.S. ethanol industry is strong. We are rebounding from the recession that has taken such a toll on every industry. We are responding to every attack that our adversaries are making against us. And we are ready to take another giant step towards energy security, economic security and environmental security for all Americans. “

Despite the troubled economy, the ethanol industry continued to expand, opening 1.5 billion gallons of new capacity and preparing to fully meet the demands of the Renewable Fuels Standard (RFS). Additionally, the industry continued providing a lifeline to rural economies, helping nearly 400,000 Americans find work or keep their jobs.

Acknowledging some of the manufactured controversy and confusion generated by those seeking to stall the growth of American ethanol production, Dinneen stated, “Thankfully, there IS growing support for domestic renewable energy, and the ethanol naysayers, while no less determined, are increasingly losing credibility.”

On extending ethanol tax incentives:

“Let this be our clarion call – the federal ethanol program has worked, it’s building an industry, creating jobs, stimulating investment in the new clean technologies that will power our economy for generations.”

On the pending E15 waiver:

While EPA’s letter this past December was encouraging, the industry was troubled “by the Agency’s suggestion it would provide a waiver for only 2001 and newer vehicles. There is no data to suggest any unique issues with older vehicles, and the bifurcation of fuel and vehicle markets cannot be resolved with labeling alone. A full waiver, for all motor vehicles, must be our objective.”

On Food and Fuel:

“Look how silly the food vs. fuel debate looks today…With the media frenzy dissipated and the benefit of hindsight and data, most economists now acknowledge what we said all along: the skyrocketing price of oil, speculation in commodity markets and monetary policy were responsible for food price inflation … NOT ethanol!”

On American corn production:

“Despite a wet spring that delayed planting, a cool, dry summer that slowed growth, and a wet fall that made harvest one of the latest ever, farmers still produced the single largest corn crop in history --13.2 billion bushels; and shattered the previous yield record by producing an average 165.2 bushels per acre. Farmers fed more livestock, exported more grain and, yes, processed more corn into ethanol and livestock feed than any time in history and yet corn stocks grew….

“We need to remind the opinion leaders and the policymakers that the remarkable increases in yield and efficiency of the American farmer over the past decade didn’t just happen by accident. These gains in productivity would not have been possible were it not for the increased demand for grain used in ethanol production.”

On environmental issues:

“Ethanol naysayers have exaggerated the carbon footprint of grain based ethanol. These naysayers don’t produce any renewable energy. All they’ve done is manufacture an interminable controversy about international land use change. Thankfully, this also has suffered from the clear lens of research and science.”

Dinneen pointed to the fact that updated assumptions and data points that are more reflective of American grain and ethanol production greatly influence the carbon footprint of ethanol. Relying on up to date data, corn-based ethanol’s carbon footprint exceeds that prescribed by Congress in the RFS.

On next generation technologies:

Dinneen specifically outlined the need for a federal loan guarantee program that works for cellulosic ethanol producers. “Congress directed the Department of Energy to develop a loan guarantee program to get these high risk technologies across the valley of death. Right now, the program is only making the trek across the valley longer and harder.”

A complete copy of Dinneen’s speech is available here.