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EPA Blue Ribbon Panel Report Recognizes Benefits of Ethanol

28 July 1999

EPA Blue Ribbon Panel Report Recognizes Benefits of Ethanol as an Alternative to MTBE

    DEDHAM, Mass., July 27 -- BC International Corporation, a
leading developer of biomass to ethanol technology, today gave credit to the
EPA's Blue Ribbon Panel on Oxygenates in Gasoline for recognizing the benefits
of ethanol as an alternative to MTBE in gasoline, but noted that ethanol's
potential is even greater than experts realize.
    The Panel's recently released Executive Summary and Recommendations
describes ethanol as an "effective fuel-blending component, made from domestic
grain and potentially from recycled biomass, that provides high octane, carbon
monoxide benefits, and may contribute to reduction of the use of aromatics and
related air quality benefits."
    Stephen Gatto, President and CEO of BC International Corporation, praised
the Panel's members for their hard work.  "They have set the stage for new
policy measures and regulatory programs to reduce MTBE use in gasoline," he
said.  Gatto pointed to recent studies that have shown that the use of MTBE,
an oxygenate, in gasoline could have contaminated water resources nationwide.
    The Panel noted that one way to reduce the use of MTBE in gasoline is by
waiving the federal mandate that requires gasoline in certain regions to
contain oxygenates. But Gatto noted that ethanol, also an oxygenate, can bring
benefits beyond air quality improvements and octane enhancements, without
having the undesirable side effects of MTBE.  "Ethanol produced from biomass
helps turn agricultural and wood waste into resources that reduce our nation's
dependence on foreign oil," stated Gatto. "There are economic and
environmental advantages in addition to those measured at the tailpipe," he
added.
    Gatto pointed out that biomass ethanol production offers solutions to
vexing environmental problems.  Ethanol can be produced from agricultural
wastes that are often burned, and can cause air pollution.  Likewise, ethanol
can be made from wood waste that in many Western regions might otherwise be a
wildfire hazard.  Gatto also noted that using ethanol in place of MTBE can
significantly reduce carbon dioxide emissions, which lead to global warming
and climate change.
    Increasing domestic ethanol production capacity will also promote fuel
diversity, create jobs, and bolster local economies, according to Gatto.  He
noted that using available biomass resources to produce ethanol to replace
MTBE in reformulated gasoline in the Northeast and in California would create
over 10,000 factory and biomass supply jobs. He stated that increased ethanol
production would also provide a sustainable fuel source for clean-burning
transportation technologies such as fuel cells and other alternative fuel
vehicles.
    Gatto added that any waiver of the oxygenate requirement should take these
noteworthy benefits into account, and replace that requirement with a
Renewable Fuel Standard that would require that a certain percentage of
gasoline include renewable fuels, such as biomass ethanol.  He noted that
increased development of biomass ethanol represents a long-term sustainable
and economic opportunity that is consistent with clean-burning gasoline,
prevention of water contamination, and other policy goals that were beyond the
scope of the Panel's work.
    Gatto's company, BC International Corporation, is currently completing the
financing to construct the world's first commercial bioethanol manufacturing
facility, a 20 million-plus gallon plant in Jennings, Louisiana that will use
sugar cane residue as a feedstock.  The company also has signed a letter of
intent with the city of Gridley, California to develop a second facility that
will use rice straw and wood chips as its feedstock.  In addition, BC
International has announced plans for a project in Chester, California that
will utilize wood waste to produce ethanol.