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Broin testifies ethanol answer to high gas prices

POET CEO Jeff Broin is testifying before the Senate Ag Committee and urging members to support ethanol production through consistent policy as a way to reduce high gas prices.

Broin says the solution to keeping gas prices lower is for American drivers to have an alternative to gasoline.

“A recent summary of several study concluded that ethanol keeps U.S. retail gasoline prices about $.17-cents per gallon lower. That translates into an annual savings of $100 per driver or $24-Billion for all U.S. drivers.”

Broin says the path to breaking through the blend wall has begun with EPA allowing E15 in 2001 and newer vehicles – and Broin urged Senators to block any attempts to “deprive consumers” that choice.

He also advocated Growth Energy’s Fueling Freedom plan that would scale back the ethanol tax credit in favor of funding ethanol infrastructure. And, he urged senators to keep funding in place for USDA’s biomass crop assistance program for farmers in the production of cellulosic ethanol. In addition,

“Today it is impossible to get financing for a cellulosic ethanol plant without a federal loan guarantee. I urge the Senate to continue funding for the DOE’s (Department of Energy’s) renewable energy loan guarantee programs.”

Broin said technology for POET’s Project LIBERTY cellulosic ethanol plant in Emmetsburg, Iowa, has been reviewed by the Department of Energy, and the company is awaiting a loan guarantee to begin construction.

“Our first commercial [cellulosic ethanol] project, which is scheduled to start up late next year, will create about 300 jobs and launch an industry that will create almost 90,000 direct jobs just by meeting minimum targets in the RFS.”

With stable policy and support, Broin said, the “oil industry would no longer enjoy exclusive access to 90-percent of the fuel supply” and allow ethanol to compete in the marketplace.