That kind of demand has a big impact on corn prices. Ethanol producers estimate their demand already adds about 28 cents per bushel to the price of corn. Any new markets for the grain would have a positive impact on depressed corn prices, which are at a 10-year low. With the substantial amount of corn grown in Central Nebraska each year, it's easy to imagine the potential impact. Ethanol is not the perfect MTBE substitute, however.
Ethanol costs more to manufacture and evaporates more quickly.
It must be blended with a more expensive, cleaner-burning gasoline. Another competing additive is a blend of alkalytes and aromatics, which are derived from crude oil. They are slightly less expensive than ethanol but pose more of an environmental risk. Crude oil must be pumped or imported. Corn is a renewable resource, grown in quantity every year, and is a boon to the Midwest economy.