Wednesday, Feb. 22, 2006
Contact: Spence Jackson, 573-751-0290
Blunt Touts 10 Percent Ethanol Standard’s Benefits
JEFFERSON CITY–Gov. Matt Blunt highlighted his proposal to require all gasoline sold in Missouri to contain 10 percent ethanol (E-10) today at stops in Jefferson City, St. Joseph, Joplin, Cape Girardeau and Hannibal.
“Now is the time to enact a 10 percent ethanol standard in Missouri,” Blunt said. “This is an opportunity that will benefit our farm families, provide a lasting boost to our state’s economy, improve our air quality and help secure Missouri’s position as a leader in ethanol production and utilization. The resources exist right here in our state. It is up to us to take advantage of them.”
Missouri currently has three operating ethanol plants located in Macon, Malta Bend and Craig and several others are in the planning stages. Missouri currently produces about 115 million gallons of ethanol annually. Anticipated growth in Missouri’s ethanol industry over the coming years is expected to produce more than enough blended fuel to meet an E-10 standard.
An economic impact study by the University of Missouri estimated that ethanol production at Missouri plants is projected to reach a full capacity of 350 million gallons each year, creating $348 million dollars annually in value-added income to Missouri’s economy and generating $726 million annually in economic activity.
As the demand for ethanol increases, farmers can expect a five to fifteen cent per bushel price increase for corn. The first four ethanol plants in Missouri will consume 55 million bushels of corn annually and raise the value of Missouri’s corn by $41 million at the farm level annually.
The E-10 standard is at the center of Blunt’s Energy and Green Power Initiative and if enacted will help lessen Missouri’s dependence on foreign oil. In addition to reducing costly oil imports, the utilization of ethanol reduces harmful automobile emissions.
Minnesota, Montana and Hawaii have already enacted an E-10 requirement. Blunt is the first Missouri Governor to include full funding for the Ethanol Incentive Fund in his budget to the General Assembly. The budget Blunt signed last year included the full $5.3 million in funding for the year as well as $2.7 million of the funds owed from previous years.
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