History of Ethanol

In ancient times ethanol was known as an intoxicating drink. In the United States, ethanol is produced mainly by the fermentation of corn.  It is the same alcohol used in beverage alcohol but meets fuel grade standards.  Ethanol that is to be used as a fuel is denatured by adding a small amount of gasoline to it.  This makes it unfit for drinking.

During the late 1800's, ethanol was used for lamp fuel and sales exceeded 25 million gallons per year.   At the request of large oil companies, the government placed a tax on ethanol during the Civil War.  This tax almost destroyed the industry.  In 1906 the tax was lifted and alcohol fuel did well until competition from oil companies greatly reduced its use.  The first large scale use of ethanol as a fuel happened during the early 1900's when petroleum supplies in Europe were short.  In America, Henry Ford's Model T and other early 1920's automobiles were originally designed to run on alcohol fuels.  Hitler and the U.S. relied on ethanol to power their armies during World War II.  After World War II, oil prices decreased which caused the use of ethanol to decrease.  The limited use of ethanol continued until the oil crisis developed in the 1970's.

Increased use of ethanol as a fuel has developed since the late l970's.  It was first used as a product extender because of gasoline shortages.  In 1973, the Organization of Petroleum Exporting Countries (OPEC) caused gasoline  shortages by increasing prices and blocking shipments of crude oil to the  United States.  The OPEC action called attention to the fact that the United States was extremely dependent on foreign oil.  The focus shifted once again to alternative fuels such as ethanol.  At that time gasoline containing ethanol was called gasohol.  Later, when gasoline was more plentiful, ethanol was  introduced  to increase the octane rating and the name gasohol was dropped in favor of names reflecting the increased octane.  Unleaded plus or super  unleaded are two examples of names used today.

Ethanol, when used as a gasoline component, improves combustion and reduces carbon monoxide emissions.  Use of ethanol benefits the areas of the U.S. that are considered to exceed Environmental Protection Agency air quality standards during the winter months.  Some studies have indicated that, used in a correctly formulated fuel, the use of ethanol can also reduce emissions which contribute  to the formation of smog.  

More recently, ethanol supporters have focused attention on other advantages. One of these advantages is ethanol's ability to provide octane while replacing  other environmentally harmful components in gasoline.  Other studies suggest that using ethanol can slow global warming.  Ethanol reduces imports by  replacing imported gasoline and crude oil.  Reducing gasoline and crude oil imports reduces American dependence on foreign oil.  According to a recent poll  conducted by Research Strategy Management, 75% of American voters believe  the country needs to do something to reduce its dependence on foreign oil. 

Today, ethanol is widely used and available in most areas of the U.S.  Ethanol is contained in over 11% of all gasoline sold in the United States.  It is, or has been, marketed by such companies as Exxon, Sunoco, Texaco, Amoco, Mobile, ARCO,  Super-America, Chevron, Union, Shell, and Phillips, as well as numerous  independent marketers.  Since ethanol was first sold in 1978, American consumers have driven more than two trillion miles (80,000 trips around the world) on ethanol blended gasoline.

The 1990's experienced the introduction and operation of flexible fuel vehicles  (FFV).  FFV vehicles are capable of operating on E-85, which is a blend of 85  percent ethanol and 15 percent unleaded gasoline.  The Ford Taurus FFV car was  introduced to Iowa in 1996 and was used in the state fleet and by some city  governments.  They became available commercially shortly thereafter.  FFV's have been designed for versatility.  They will operate on unleaded gasoline  or any mixture of gasoline and ethanol up to an 85 percent blend. 

The key component in a flexible fuel vehicle is a sensor which determines the  percentage of ethanol in the fuel, and with the help of a computer, makes  adjustments automatically for best performance and emissions.  Beginning  with the 1998 model year, Chrysler offered FFV minivans.  Ford continues to  offer the Taurus and added Windstar and Ranger in 1999.  Explorer and Sport Trac were offered in 2001.  General Motors Chevrolet S10 and Sonoma, Isuzu Hombre, and Mazda B3000 were offered in an FFV version beginning in 2000.

Two specific pieces of federal legislation, the Clean Air Act Amendments of 1990 and the Energy Policy Act of 1992 mandated the phased-in adoption of cleaner- burning vehicles.  These federal laws required that state, municipal, and private fleets must meet stricter emission guidelines starting in 1998.  One way this was accomplished was by replacing existing vehicles with newer technology like flexible fuel vehicles.  One portion of the law requires 70 percent of all new fleet vehicle purchases meet these new standards in 2000.

Auto manufacturers were also required to meet the new standards.  Beginning in 1996, new model vehicles were equipped with on-board diagnostic monitoring systems capable of monitoring tailpipe and evaporative emissions.  New computer technology made this possible.

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