[Duffman]

No it doesnt because because again it is an energy analysis.

If a farm uses 1000 gal of gasoline (or energy equivalent other processes) to produce ethanol, it doesnt produce 1300 gal of ethanol, it produces 1300x1.25=1625 gal of ethanol. What we are doing is taking a concentrated energy source and turning it into a lower concentrated energy source but more of it (as well as running it through the 1.3 energy multiplier).

If you are having a hard time wrapping your head around it then think of ethanol as gasoline with 25% water added so they now have the same volume and energy content. And since water is practically free there is no cost associated.