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Ethanol Company Chief Bullish On Renewable Fuel’s Future

Brownfield:
An ethanol titan is still bullish on his industry. And he’s confident the current backlash against corn-based ethanol will quickly dissipate.

On April 1st, VeraSun Energy of Brookings, South Dakota, bought U.S. Bioenergy of St. Paul, Minnesota. The combined company produces a billion gallons of ethanol a year, and when six facilities now under construction are completed, will produce 1.6 billion gallons of ethanol annually. That makes the company one of world’s largest corn-based ethanol producers, if not the biggest outright.
bioethanol-pump.jpg

Of course, it goes without saying that corn-based ethanol is currently under attack. But Don Endres, VeraSun’s Chairman and CEO, told Brownfield Tuesday that ethanol’s opponents are quickly becoming laughable in the outrageousness of their claims.

“In many ways, because, you know, this organized effort has moved so far to one side, to a point to where, really, it’s becoming somewhat of a joke,” Endres said. I think it’s burning it’s way out on its own.”

On the other hand, Endres added he’s taking no chances. And to that end, VeraSun has joined other ethanol producers, auto manufacturers and a range of other interested parties in a national campaign to defend ethanol against its opponents.

“We’re organizing and actually now executing on a plan to get the word out,” Endres said. “There are a number of studies that have been produced that clearly support the fact that ethanol is reducing the cost at the pump for consumers anywhere from 20 to 50 cents depending upon which study you look at,” he continued. “It’s clearly adding to our energy security and it’s not having any meaningful impact on the price of food at the grocery store.”

It seems obvious that public relations campaign against corn-based ethanol is aimed at changing government policies, like the Renewable Fuels Standard (RFS), that support the renewable fuel. But according to Endres, such pro-ethanol policies are irrelevant compared to the market forces driving the ethanol industry’s expansion, market forces like record-high crude oil prices, the need for an environmentally friendly, effective gasoline oxygenate and growing global liquid fuel demand. Read more.

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