= Bodman: US Should Move Away From Corn-Based Ethanol

ALEXANDRIA, VA., Apr 18, 2008 (Dow Jones Commodities News Select via Comtex) -- -- style='font-size:11px;'>By Siobhan Hughes Of DOW JONES NEWSWIRES

U.S. Energy Secretary Samuel Bodman said Friday that the growing emphasis on corn-based ethanol has contributed to higher food prices, and said that the nation should begin "moving away gradually" from ethanol made from food such as corn.

"As we pursue diversity in our overall energy mix, we must also pursue diversity in our biofuels," Bodman said at a conference in Alexandria, Virginia. "This means moving away gradually from ethanol produced from foodstocks like corn.

"Let me be clear: I am not minimizing the importance of ethanol made from corn - it is critical to our energy security," he said. "But what I am saying is that we need to develop and deploy the next generation of ethanol."

His remarks come after President George W. Bush signed into law in December an energy bill that mandates that 36 billion gallons of so-called renewable fuel would be blended into the fuel supply by 2022. Of the 36 billion gallons, 21 billion gallons would have to come from sources other than corn, such as wood chips. Ethanol from such alternative sources is known as cellulosic ethanol.

"The reason that cellulosic fuels like ethanol are not on the market in large volumes is not because we don't know how to make it in commercial quantities," Bodman said. "The production process at present is too complex and too costly but I am confident that we can find the way forward."

Bodman said that "the bottom line is this: concerns about the sustainability and environmental impact of biofuels are not misplaced, but they are absolutely not a reason to ignore the tremendous promise of biofuels. They are an argument for developing them in a way that makes sense for our environment, for our food supply, for our agricultural community and for our nation's economic health."

-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.Hughes@dowjones.com

(END) Dow Jones Newswires

04-18-08 1433ET

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