Where do so-called “bio-fuels” like ethanol fit into America’s energy future?  Well according to commodity market analyst David Juday there are both downsides, and upsides to its widespread use:  “Ethanol is a fuel grade alcohol made from fermenting sugars and starches present in crops like corn, sugar cane, or wheat straw. The benefits of ethanol are that it increases gasoline octane and reduces some harmful emissions.  That’s one reason 2 percent of all motor fuel in the U.S. had some ethanol mixed in it last year. The drawbacks are that ethanol reduces mileage, can add to smog, and is expensive to produce. Government regulations that force the use of more ethanol tend to increase fuel prices.  That’s why it’s best for the market – not the politicians – to decide ethanol’s proper energy role.”

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