Evaluation and analysis of Texas biofuel supply chains originating in the United States Midwest and Brazil.
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2009-05-01
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Alternative Title:Analysis of Texas biofuel supply chains originating in the United States and Brazil
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Abstract:This 2009 study, funded by the Southwest Region University Transportation Center, investigates
competing ethanol supply chains terminating in the State of Texas. Midwest corn ethanol and
Brazilian sugarcane ethanol constitute two sources of the biofuel necessary for synthesis of the ten
percent ethanol, ninety percent gasoline fuel blend, commonly referred to as E10. The updated 2007
Renewable Fuel Standard passed by Congress and signed into law by President George W. Bush in
December 2007, promotes national availability of E10. As a follow up to the 2008 Bioenergy and
Alternative Fuels Scoping Study, this report discusses the requisite equipment, time, and costs to
transport ethanol to the Lone Star State from its Midwestern or Latin American sources. Federal
biofuels policy along with new transportation technology, such as pipeline movement of renewable
fuels, will largely determine whether domestic or international ethanol is more economically
competitive in six Texas fuel markets. If Congress chose to repeal the $0.54 per gallon domestic
ethanol offset tariff, sugarcane ethanol pipelined inland from the coast could be more competitively
priced than the corn variety as far west as the El Paso metropolitan area.
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