History
In 1826 Samuel Morey experimented with an internal combustion chemical mixture that used ethanol (combined with turpentine and ambient air then vaporized) as fuel. At the time, his discovery was overlooked, mostly due to the success of steam power. Ethanol fuel received little attention until 1860 when Nicholas Otto began experimenting with internal combustion engines. In 1859, oil was found in Pennsylvania, which decades later provided a new kind of fuel. A popular fuel in the U.S. before petroleum was a blend of alcohol and turpentine called "camphene", also known as "burning fluid." The discovery of a ready supply of oil and unfavorable taxation on burning fluid made kerosene a more popular fuel.
In 1896, Henry Ford designed his first car, the "Quadricycle" to run on pure ethanol. In 1908, the revolutionary Ford Model T was capable of running on gasoline, ethanol or a combination. Ford continued to advocate for ethanol fuel even during the prohibition, but lower prices caused gasoline to prevail.
Gasoline containing up to 10% ethanol began a decades-long growth in the United States in the late 1970s. The demand for ethanol produced from field corn was spurred by the discovery that methyl tertiary butyl ether (MTBE) was contaminating groundwater. MTBE's use as an oxygenate additive was widespread due to mandates in the Clean Air Act amendments of 1992 to reduce carbon monoxide emissions. MTBE in gasoline had been banned in almost 20 states by 2006. Suppliers were concerned about potential litigation and a 2005 court decision denying legal protection for MTBE. MTBE's fall from grace opened a new market for ethanol, its primary substitute. Corn prices at the time were around US$2 a bushel. Farmers saw a new market and increased production. This demand shift took place at a time when oil prices were rising.
The steep growth in twenty-first century ethanol consumption was driven by federal legislation aimed to reduce oil consumption and enhance energy security. The Energy Policy Act of 2005 required use of 7.5×109 US gal (28×106 m3) of renewable fuel by 2012, and the Energy Independence and Security Act of 2007 raised the standard, to 36×109 US gal (140×106 m3) of annual renewable fuel use by 2022. Of this requirement, 16×109 US gal (61×106 m3) had to be advanced biofuels, defined as renewable fuels that reduce greenhouse gas emissions by at least 50%.
Read more about this topic: Ethanol Fuel In The United States
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