Gasohol - Where We Are Today

Abstract

With the advent of the crude oil price increases, associated with the Middle East crisis, many countries, particularly Brazil, began producing ethanol for the use as fuel in mixture with gasoline. In the United States, 'gasohol', a blend of approximately 90% gasoline and 10% ethanol began to be marketed. It was quickly accepted in a market which at that time was being controlled by political and supply problems. Major global and domestic events such as the general glut in the world supply of crude oil, decontrol of prices, lower demand for gasoline and the effect of the current administration on government funding and/or guarantees and the lack thereof, has resulted in a restructing and change in the industry.

This paper will briefly describe events leading to the current marketing situation involving octane enhancement, government involvement, predictions as to future production and marketing strategies and a description of a major 'grass roots' ethanol plant currently being constructed in Franklin, Kentucky.