Wednesday, August 24, 1933
Daily Nebraskan
Page 15
ULIUL
0:
By Randy Christy
The potential of fuel-aleohol to
improve Nebraska's economy has been
a controversial issue since alcohol
plants were built here in the late
1970s.
Proponents of fuel-alcohol, or
ethanol, indicated there are many
factors that make the future of the
industry look bright.
"It is in the best interest of the
country to find alternative energy
sources," Mark Pocschl, of the
Nebraska Gasohol Committee, said.
"Ethanol is here and accepted in the
market place."
Ethanol is produced from grain,
usually corn, by a three-step process of
cooking, fermenting and distilling.
Variations in this process can be seen
in the different types of alcohol plants.
Smaller farm-sized plants can only
produce 190-proof ethanol, which can
not be mixed with gasoline. The larger
commercial plants have the capability
to produce 200-proof ethanol which is
used in the mixture of 10 percent
ethanol and 90 percent unleaded gaso
line. This 1090 mixture produces "the
super-unleaded fuel currently mar
keted. "The combination of greater name
recognition, the alcohol-blend be
coming more available and changing
the name from gasohol to super
unleaded has caused the growth spurt
of ethanol beginning in March of 1 982,"
Poeschel said.
There were 95 million gallons of
gasohol sold in Nebraska in 1982. The
Nebraska Gasohol Committee projects
1983 figures will be around 170 to 180
million gallons.
These figures encourage backers of
the fuel-alcohol industry. Yet, not
everyone shares in this enthusiasm.
Loyd Fischer, a UNL agricultural
economist said he believes the in
dustry has some major problems.
"It has to make you a little nervous
to base an industry on government
subsidy" he said. "When government
eliminates the subsidy, the industry
goes down the tubes."
Fischer said the industry is over
subsidized because of tax breaks for
' distributors of gasohol. The tax breaks
consist of a 5 cent deduction from both
state and federal road taxes. Fischer
said that since ethanol comprises only
10 percent of the gasohol mixture,
there is a $1 subsidy per gallon of
ethanol.
Fischer said he thinks the road tax
incentives are hurting the people that
the fuel-alcohol industry was intended
to help.
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