NEWS RELEASE

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Immediate Release:
Monday, September 29, 2008

Nebraska Corn Board contacts:
Randy Klein: 800.632.6761

Homegrown ethanol helps improve energy security

LINCOLN, NE – The desire to grow the renewable fuels sector goes beyond the fact that renewable fuels like ethanol burn cleaner and have other environmental benefits.

“Biofuels like ethanol add to our energy supplies, and since ethanol is also produced domestically, it adds to our energy security,” said the Nebraska Corn Board’s Randy Klein.

Neil Moseman, director of the Nebraska Energy Office, said energy security includes everything from preventing energy price shocks to reducing an over reliance on energy sources from unstable parts of the world.

“By producing more energy domestically, in this case a renewable fuel, we’re not only diversifying our fuel supply, but we’re reducing our dependence on foreign petroleum at the same time,” Moseman said. “These are critical components and important considerations when discussing ethanol or any renewable fuel.”

Over reliance on foreign sources of oil is problematic whether oil prices are low or high. “When prices are low, you are still open to the possibility that something will disrupt the supply,” Moseman said. “When prices are high, you still have that disruption possibility, but you also have the economic harm that comes with hundreds of billions of dollars leaving the United States for other parts of the world.”

Klein said that transfer of dollars – transfer of wealth – damages not only the economy in the U.S., but every country that relies on imported oil. “It’s like oil exporters imposing a nearly $700 billion tax on the citizens of the United States,” he said. “It’s a giant de-stimulus package that we all pay, and not just at the pump. High energy prices raise every food item and widget on the store shelf.”

He explained that higher energy costs add to the other economic woes making headlines every day. “High oil and energy costs are incredibly damaging,” Klein said. “We need to continue investments in alternatives.”

Moseman noted that in addition to helping improve the country’s overall energy security, ethanol also aids the domestic economy by creating jobs and adding value to locally-produced commodities. “This not only improves local economies through job creation and economic activity, but it circulates dollars through all of Nebraska and the entire country, and keeps those dollars from leaving the country altogether,” he said.

“We must bear in mind the economic situation currently facing our state’s livestock industry; however, co-products of ethanol production provide the state’s livestock industry with an economical alternative,” Moseman added.

Klein noted that ethanol is a “homegrown product” that’s made in small-town America by companies that employ local people, buy local goods and services and pay local taxes. “We need to diversify our fuel supply, develop more renewable sources of energy and do so as quickly as possible,” Klein said. “Ethanol is ready and available now. It’s not the only solution, but it’s certainly an important part.”

The Nebraska Corn Board is a self-help program, funded and managed by Nebraska corn farmers. Producers invest in the program at a rate of 1/4 of a cent per bushel of corn sold. Nebraska corn checkoff funds are invested in programs of market development, research and education.

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