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"Ethanol is a viable commodity in
Illinois and throughout the nation, and demand will continue to grow
now that ethanol is a part of the national energy formula," Gov.
Blagojevich said. "The introduction of ethanol today to the Chicago
Board of Trade futures market is a crucial next step as we look to
stabilize ethanol prices and provide a growing and reliable domestic
market for Illinois farmers."
Ethanol is a homegrown, renewable, corn-based fuel. Ethanol
production and use creates jobs, increases farm income, improves air
quality and reduces dependency on foreign oil. Currently, Illinois
ethanol production makes up about 25 percent of the 3.7 billion
gallons produced nationwide. Illinois is home to five ethanol plants
in operation, with two more under construction and several
additional plants planned throughout the state.
"Today's announcement of a CBOT
ethanol futures contract is significant to Illinois for a number of
reasons, including our position as the second-largest corn producer
in the nation," Hartke said. "The growth potential in ethanol
production has already proved to be significant. As a nation, we're
approaching production levels of nearly 4 billion gallons, up 145
percent over production levels in 2000. This contract will help to
manage price volatility and make ethanol a more viable commodity in
the market."
Also on Wednesday, as part of
Opportunity Returns, the governor's innovative, regional approach to
creating jobs and spurring economic growth, Gov. Blagojevich
announced several key grants to further promote ethanol and
biodiesel fuel:
Ethanol/Biodiesel Project 2005
AgriFIRST recipients
Northwest
Region
- Henry County Ethanol Project
Steering Committee/DBA Patriot Resources, $25,000 -- to be used
for technical assistance associated with the development of a
50-million-gallon-per-year ethanol facility in Henry County, which
would be powered by either natural gas or coal. Estimates show the
plant will use approximately 18 million bushels of corn, or about
10 percent of the corn produced within a 50-mile radius of Henry
County.
- Northwest Illinois Agriculture
Coalition, $13,000 -- to hire technical assistance to oversee
continued membership development and daily operations as the
coalition pursues various value-added agricultural projects in the
10-county membership area. Examples of initiatives the coalition
is working on include an ethanol plant, livestock development and
an agritourism system.
North
Central Region
- Illinois Corn Marketing
Board/Illinois Corn Growers Association, $25,000 -- allows the
Illinois Corn Growers to establish funds to help groups that are
pursuing ethanol projects to access the computer model. It will
also be used to create a step-by-step process for potential
ethanol projects to pursue in an effort to obtain funding.
Southwest
Region
- Southern Illinois University
Edwardsville National Corn to Ethanol Research Center, $24,000 --
to conduct a feasibility study to determine the factors affecting
the flowability of distillers' dried grains with solubles. This
DDGS is primarily used as a ruminant animal feed protein
supplement. U.S. dry-mill ethanol plants produce more than 3.8
million metric tons of DDGS annually. Anticipated growth in the
ethanol industry will result in 66 percent more DDGS by the year
2005. The National Corn to Ethanol Research Center is the only
pilot plant facility in the country with the ability to conduct a
feasibility study and include results from processing corn through
to the end product and byproduct.
Gov. Blagojevich also recently announced $1 million in Opportunity
Returns funding to support the center's role in technological
innovation to continue to reduce the costs of ethanol production.
[to top of second column in this article] |
 Southern
Region
- Mid-America Biodiesel LLC,
$90,000 -- to complete a feasibility study to evaluate the
potential for a 40-million-gallon-per-year biodiesel facility in
White County. At full capacity, the plant would process 27 million
bushels of soybeans annually. Approximately 33 percent of the
soybeans required would come from the region. The demand on the
corn supply should increase the price farmers are paid, and
Mid-America Biodiesel estimates producers could see an increase of
an additional 10-15 cents per bushel.
Last week, the governor announced
his support for the Fuels Security Act of 2005, legislation
sponsored by U.S. Sen. Richard Lugar, R-Ind., and U.S. Sen. Tom
Harkin, D-Iowa, that would more than double the amount of ethanol
used nationwide -- reaching 8 billion gallons by 2012. U.S. Sen.
Richard Durbin, D-Ill., and U.S. Sen. Barack Obama, D-Ill.,
co-sponsored the legislation.
During
his two years in office, Gov. Blagojevich has taken numerous steps
to advance the ethanol and biodiesel industry in Illinois:
- Announced $500,000 in Opportunity
Returns funding to increase access to E-85, an advanced hybrid of
ethanol, and allow more gas station operators to offer the 85
percent ethanol fuel.
- Last August, the governor signed
legislation requiring the Illinois secretary of state's office to
create a database of flexible fuel vehicles, many which are built
to run on 85 percent ethanol fuel, in order to lead to more E-85
fuel stations options around the state.
- Within months of being sworn into
office, the governor also lobbied for and signed legislation to
eliminate the state sales tax on E-85, allowing the fuel to retail
for 10 to 15 cents per gallon cheaper than regular unleaded
gasoline.
- Provided $4.8 million to the
Lincolnland Agri-Energy ethanol plant in Robinson to help the
plant succeed in closing on private financing for the project. The
plant is now producing more than 40 million gallons of ethanol per
year.
- Signed an executive order
requiring increased use of both ethanol and biodiesel by state
employees, similar to the measure included in the federal
proposal.
[News release from the governor's
office]
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