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*Ethanol: A Disaster for the Environment *
*Ethanol is no solution to Sugar Woes*
*The larger consequences are a destruction of the environment, depletion of
water resources and unabashed shift towards cash crops over foodgrains
produce. Bajaj Hindustan, Balrampur Chini and the likes of Shree Renuka will
do more damage than benefit, if the recent study by the US EDA report is an
indication. *
**
*The Ogallala Aquifer, which contributes to water supplies in eight states
including South Dakota, would be further strained if current trends in
ethanol production persist, according to a report released Thursday by an
environmental advocacy group. *
"State agencies that are proposing ethanol plants need to be concerned about water withdrawal," said Timothy D. Male, senior scientist for Environmental Defense. "The direction we're taking is that not all biofuels are created equal, and we need to come up with standards through which we can evaluate all the fuels."
State leaders and trade groups, however, defended ethanol as an important component of the rural economy and criticized some of the report's findings.
"I think they're hitting the panic button a little prematurely," said Matt Hartwig, spokesman for the Renewable Fuels Association, a trade group that promotes ethanol. "Our industry is very aware of natural resources, and we're very cautious in how we use those resources."
Hartwig said ethanol plants go through a lengthy approval process and have to meet standards that include ensuring adequate water supplies. "We're also working on technologies that will continue to improve ethanol production efficiencies, which include reducing water use," he said.
*Ethanol's popularity as an alternative fuel has reached an all-time high.
With about 119 plants nationwide and 86 more on the way, the country's
ethanol output was about 6 billion gallons last year, according to the RFA.
*
*But according to the Environmental Defense report, President Bush's goal of
35 billion gallons of ethanol by 2015 is "almost certain to result in a
major increase in corn production." That increase will strain the
underground aquifer, as well as grasslands that would be turned into
cropland to grow the corn used in most ethanol plants. *
The Environmental Defense report said new corn ethanol plants under construction in areas of highest depletion in the aquifer will increase the region's ethanol production by 900 percent.
*"This dramatic expansion of ethanol production has substantial implications
for already strained water and grassland resources in the Ogallala Aquifer
region," according to the report.*
But Geoff Cooper, spokesman for the National Corn Growers Association in St. Louis, said of the additional 14 million acres of corn planted last year, none came from native grassland or pasture land "or anything like that."
"To suggest corn is going to be planted on native grassland is a stretch, and we just don't see it playing out that way," Cooper said.
*Water demands from the ethanol plants in areas where the aquifer is
depleted "may reach 2.6 billion gallons per year for corn-to-fuel processing
alone, and between 59 and 120 billion gallons per year for increased water
demand if there are local increases in irrigated corn production," according
to the report. The eight Ogallala states are Kansas, Wyoming, Nebraska,
Colorado, New Mexico, South Dakota, Oklahoma and Texas. *
Ethanol production in Kansas, which has nine ethanol plants, with a capacity of more than 270.5 million gallons, was expected to quadruple by 2010.
The report said if four new ethanol plants in Kansas lead to any increase in local irrigated corn production, the plants would have an "even larger impact on water pumping demands in one of the most over exploited sections of the Ogallala Aquifer, where a large region of the water table declined by over 40 feet between 1980 and 1996."
But Kansas Agriculture Secretary Adrian Polansky said ethanol plants in Kansas do not adversely affect the aquifer.
"Ethanol plants being put in place in western Kansas in the Ogallala Aquifer area have no impact on the water use in that area," Polansky said. "The Ogallala Aquifer area is basically closed to new appropriation."
Polansky also said the increased demand for corn did not have a major effect on corn production in Kansas last year. Kansas farmers planted about 3.65million acres of corn last year, and this year they planted 3.7 million acres.
*"That's hardly a significant change," he said. "I think it's very
oversimplistic to try to make conclusions about what farmers' decisions will
be because of ethanol."*
*Safe Harbor Statement:*
*Some forward looking statements on projections, estimates, expectations &
outlook are included to enable a better comprehension of the Company
prospects. Actual results may, however, differ materially from those stated
on account of factors such as changes in government regulations, tax
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the Company conducts its business, exchange rate and interest rate
movements, impact of competing products and their pricing, product demand
and supply constraints. *
**
*Nothing in this article is, or should be construed as, investment advice.**
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Received on Sun Sep 30 2007 - 10:22:47 EDT
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