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For Immediate Release: January 17, 2008
Contact: Matt Braud   (202) 482-3809

Competitiveness Report Reveals Economic Benefits of Cellulosic Ethanol

WASHINGTON –The U.S. Commerce Department’s Bureau of Manufacturing and Services recently issued a report titled, Energy in 2020: Assessing the Economic Effects of Commercialization of Cellulosic Ethanol. The report examines the positive effect on the U.S. economy if cellulosic ethanol becomes commercially viable.

“This report underscores the importance of making cellulosic ethanol commercially viable. Once available, consumers, our economy, and the environment would benefit from this viable alternative energy source,” said Manufacturing and Services Assistant Secretary William G. Sutton. “Increased production would strengthen the competitiveness of many U.S. industries while reducing the imports and cost of crude oil.”

President Bush recently signed the Energy Independence and Security Act of 2007 calling for a sixfold increase in the use of ethanol, which can be substituted for gasoline. Unlike corn-based ethanol, cellulosic ethanol is manufactured from materials in biomass, such as crop and forestry residues, energy crops, and wood waste. Consequently, it has negligible impacts on the price of food, and does not emit as much greenhouse gas.

Some of the key findings indicate that crop producing industries and their suppliers would benefit; annual benefits for U.S. consumers would total $12.6 billion if cellulosic ethanol production increased; U.S. crude oil imports would be 4.1 percent lower if 20 billion gallons of cellulosic ethanol were produced in 2020, which is about 460,000 barrels per day or approximately 40 percent of current crude oil imports from Venezuela; the worldwide price of oil and the domestic U.S. fuel price would be 1.2 percent and 2.0 percent, respectively, lower than projected.

To review the report, Energy in 2020: Assessing the Economic Effects of Commercialization of Cellulosic Ethanol visit or

Manufacturing and Services (MAS) enhances the competitiveness of U.S. industries by helping create a positive business environment that promotes economic growth domestically and internationally. MAS’s industry experts and analysts ensure that policies, regulations, and laws are passed with an eye towards competitiveness of the U.S. manufacturing and service sectors. To strengthen competitiveness abroad, MAS represents U.S. industries in trade negotiations, shaping trade policy and helping industry gain access to foreign markets.

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