Energy

Monday, April 12, 2010 4:12 PM

Ethanol Rivals Begin Ad Battle

By Darren Goode, NationalJournal.com

Updated at 4:20 p.m. on April 12.

An ad war between corn and sugarcane ethanol producers is kicking in.

A campaign announced today and sponsored by the Brazilian Sugarcane Industry Association is centered on a new Web site, SweeterAlternative.com, print ads in National Journal and other inside-the-Beltway publications, and radio sponsorships on D.C.-area public radio. The ads begin today and will run periodically throughout April. "We are still formulating our plans for the rest of the year," said the group's spokeswoman, Charlotte Seigler.

Growth Energy -- which represents the world's biggest ethanol producer, Poet Energy, and several other U.S. corn-based ethanol producers -- today announced a six-month, $2.5 million television ad buy on national cable outlets.

"The sugarcane ethanol campaign's advertising budget is less than one-tenth the size of the rival campaign's ad budget," Seigler said, taking a David vs. Goliath stance against the campaign from U.S. corn-based producers.

"Perhaps their efforts would be better spent attempting to answer the questions raised... about Brazil's labor and environmental standards," Growth Energy spokesman Chris Thorne said. Brazil's ethanol industry has been targeted for causing deforestation and worsening the nation's greenhouse gas emissions.

Sugarcane ethanol can be grown in the U.S., but it is predominantly produced in Brazil.

The sugarcane and corn crowds have butted heads over a 54-cent-per-gallon U.S. tariff on ethanol from Brazil and most foreign countries, which would expire at the end of this year. Brazil recently announced it would lift its own tariff against U.S. ethanol, which U.S. producers said should not lead to any change in the U.S.-based tariff.

"We would not support reducing the U.S. import tariff, despite whatever Brazil is temporarily doing, because Brazilian ethanol already enjoys generous subsidies from the Brazilian government, and to provide them access to additional subsidies from the U.S. government makes no sense," Growth Energy CEO Tom Buis said in an April 6 statement.

Brazilian sugarcane ethanol producers counter that the U.S. imports dirtier oil duty-free and often from more unstable nations. They also tout sugarcane ethanol as averaging 50 cents less per gallon than corn ethanol.

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