We are building a 100,000 millon gallon ethanol plant in Gibson City, IL. It will grind 100,000 bushels of corn a day and use 1 million gallons of water. The ethanol plant will have 3 wells and and their own water treatment plant.
While it is true that the federal government subsidizes ethanol production, the production of ethanol is saving the US consumer about 60 cents a gallon on the cost of gasoline. The subsidy is about 6 cents per gallon of blended fuel.
The University of Nebraska has completed a study that says the cost of food has increased 1% due to higher grain prices. Put another way for every $1 increase in the price of food due to higher grain prices the US consumer saves $6 on the fuel they put in their vehicles.
Ethanol is only part of the puzzle and the use of corn as a feed stock is only a partial answer until we figure out how to efficiently make ethanol from cellulose and other waste material. In the mean time those ethanol plants are also producing a high value livestock corn that can replace some of the corn in livestock diets.
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