By KEVIN WALKER
Michigan Correspondent

CARO, Mich. — Is there too much ethanol being produced right now? Maybe, but it still depends upon who is asked.

Dave Glower, general manager of POET Biorefining in Caro, says sure, but not at the plant he manages. “This particular facility is stable,” Glower said. “We’re producing all the ethanol we can. The industry as a whole is producing more ethanol than it can use. We’re more profitable than some plants.”

The company’s Caro plant produces 53 million gallons of ethanol a year, and is one of 27 POET ethanol facilities scattered across the greater Midwest. Glower went on to explain that changes toward more use of ethanol, such as the move toward E15, will help plants that are less profitable. He said those “marginal” plants are the ones going out of business.

Although Glower is disappointed with the U.S. Environmental Protection Agency’s (EPA) partial waiver for E15 – its approval of E15 for use in 2007 and newer vehicles only – more ethanol will be used if the agency approves the new blend for cars made between 2001-06. The EPA says it’s still awaiting test results on those older vehicles; the tests are being conducted by the U.S. Department of Energy.

“At that point, you’re targeting a pretty big percentage of the cars on the road,” Glower said.

Bill Welever, plant manager at the Green Plains Riga ethanol plant in Riga, Mich., said his plant isn’t producing too much ethanol, either.

“Business is good for us,” Welever said.

The Riga plant, formerly owned by Global Ethanol, was recently acquired by Green Plains Renewable Energy, based in Omaha, Neb. Welever said the plant is producing approximately 60 million gallons of ethanol a year. He doesn’t know if the industry as a whole is producing too much ethanol right now.

“I don’t know. There have been more plants coming back online, I’m not really sure yet,” he said.

Welever feels much the same way Glower does about the EPA’s decision on E15. “E15 was a good first step,” he said. “The problem was it was limited to vehicles 2007 and newer.

“The gas pumps are limited. It would require gas stations to install another pump, in addition to the pumps for E10. That’s a problem. I’m not so sure all gas stations will find that to be profitable.”
He went on to say if the EPA had approved the new blend for all cars, gas stations could have changed their E10 pumps to E15. He also said some gas stations might even have to install a new tank dedicated to the new blend, depending on the technology at the particular station.

So, what does Welever think would happen if the EPA approves the use of E15 for vehicles made from 2001-06? “I don’t know what the increase would be,” he said. “Obviously it would help.”

Tom Buis, the CEO of Growth Energy, a pro-ethanol consortium, is more upbeat about prospects for E15. He said there are currently two different kinds of diesel fuel on the market and that not too long ago, there was a successful transition from leaded to unleaded fuel.

“I’m confident we can make this change as well,” he said.