A study released Monday shows that Missouri drivers are saving money at the pump thanks to ethanol.
According to research results announced at a press conference in the State Capitol, drivers in Missouri are expected to save an average of 9.8 cents per gallon this year due to the 10 percent ethanol standard that went into effect Jan. 1, 2008.
The study, “Impact of Ethanol on Retail Gasoline Prices in Missouri,” was performed by John Urbanchuk with the economic consulting service LECG and paid for by the Missouri Corn Merchandising Council.
“The mandate went into effect in 2008, but last year 70 percent of the gasoline was voluntarily blended with ethanol,” said Urbanchuk. “So, using actual data for 2007, we calculated that the savings for Missouri was roughly 7.8 cents a gallon. Works out to about $156 million for consumers.”
“Then we looked at 2008 moving forward using current information for prices and projections by the Energy Information Administration,” he continued. “And we concluded that for 2008 the savings are about 9.8 cents a gallon, which works out to about $73 for every driver in Missouri.”
The study does not factor in the increasing use of biofuels like ethanol that are helping to extend gasoline supplies and hold retail pump prices down. According to Merrill Lynch commodity strategist Francisco Blanch, U.S. gas prices would be 15 percent higher without the increasing effect of biofuels. Without ethanol, the price at the pump would be $3.70 a gallon instead of the recent average price of $3.25 a gallon.
Listen to an interview with Urbanchuk about the study here.
[audio:http://www.zimmcomm.biz/mcga/mcga-urbanchuk.mp3]


KL Process Design Group was the first company to get a small-scale cellulosic ethanol plant on-line using waste-wood material to produce about 1.5 million gallons of ethanol a year. The company is currently providing teams in the American LeMans Series with an 85 percent cellulosic ethanol racing fuel.
A Canadian company says it has technology that will help shake loose more sugars from corn to make more ethanol and more oil from feedstocks, in particular algae, to make more biodiesel.
A new report from R.L. Polk & Co. says sales of hybrid vehicles rose 38 percent in 2007, compared to the previous year. The report also points out that better technologies and infrastructure are needed for ethanol- and biodiesel-powered vehicles to live up to their sales potential.
Electric meters are running backwards as Rock Port, Missouri became the first town in the country to run on 100 percent wind power.
“Rock Port officially declared its energy independence today,” said Tom Carnahan, president of the St. Louis-based Wind Capital Group that brought the Loess Hills Wind Farm to fruition.
A new analysis of America’s ethanol industry shows dramatic efficiency gains in ethanol production have been made in the last five years.
“This is not your father’s ethanol industry anymore,” said
Kentucky Governor Steve Beshear visited the headquarters of Alltech this weekend for the ribbon cutting of the company’s new Nutrigenomics Center. Alltech is an international company involved in a variety of enterprises from animal nutrition and biotechnology to horse racing and malt whiskey. The governor says everyone is very excited about Alltech’s new venture into biofuels.
Alltech president Dr. Pearse Lyons says he was humbled to receive one of the three new DOE grants announced last week and he is confident about the project, which will cost an estimated $70 million. “In 15-18 months, we will be using what we call solid state fermentation to go forward cracking cellulose to ethanol,” said Lyons. “And we will use 30 percent corn stover or switchgrass.”
Independent regional fuel distributor and specialty refiner Direct Fuels has opened a biodiesel facility at its Euliss refinery in North Texas.
Biofuel maker Nova Biosource Fuels, Inc. has updated the progress on its Seneca, Illinois biodiesel plant.
A commercial launch company in Massachusetts will run some of its boats this summer on biodiesel.
Mid-Harbor Launch plans to begin using a mixture called B20, and possibly higher mixes, on three or four of its new launches for the upcoming boating season.