coffeeman said:
Corn based fuel is viable fuel or else so many wouldn't be investing. True, some folks are not so smart. There's too many investing for them all to be wrong.
I think you missed the point. I never claimed folks were not making money growing corn to produce ethanol for motor fuel. I made no claim that ethanol producers were loosing money.
So what is the problem then??? The problem is that there is as much energy consumed in producing the corn and the ethanol as the ethanol provides and the reason the process is profitable from end to end is because of Government subsidies. If the Government didn't take our tax $ and pour it on the corn to ehanol for motor fuel process the process would NOT BE PROFITABLE and folks would not invest in it. It would NOT HAPPEN if the Gov wasn't artificially pumping it up. The Gov takes our tax $ and redistributes it to the gasohol industry. This is not an issue of how smart the investors are. When the Gov is giving away free money, lots of folks are willing to take some.
Unfortunately the gasohol industry is not generating more fuel than it uses in its production. It is not all than complicated. If the Gov did not subsidize any part of the process it would fall flat on its face and die a natural death and no one would be investing in it. If corn to motor fuel had promise of surpassing the break even point then the Gov subsidy would be a smart and prudent thing to do as a long term investment in the energy independence of our nation.
Other sources for feedstock for ethanol production (switch grass etc) offer the promise of a positive energy budget, i.e. you can get out more than you put in. Would you want to invest your $ if it was a sure thing that you would never come out ahead? That is the reality of the situation now if the Gov wasn't taking our tax $ and propping up the corn to motor fuel process. Investors in the process are just signing up to take tax $ from other folks. This smacks of a ponzi scheme more than a viable large scale reduction in foreign oil dependence. Lots of folks are worried about oil dependence so the Gov waves its magic wand and SHAZAM we are doing something about it. Unfortunately there is a difference between motion and progress and corn to motor fuel is lots of noise and motion but no progress.
Motor fuel from ethanol from cellulose has great promise. It isn't ready for prime time yet. If the $ being taken from taxpayers to prop up corn-ethanol were spent on cellulose-ethanol we would be making a wise long term investment. Motor fuel from cellulose will yield a positive net return on energy input. You can get significantly more energy out than you put in. This is not the case with corn.
Corn requires lots of diesel fuel to run the tractor to prepare the field for planting, doing the planting, cultivating, oil based fertilizers, oil based weed control, harvest, etc. The total oil budget to produce corn for feedstock to produce ethanol equals or exceeds the energy content of the ethanol. If you remove the politics from the process it is not self sustaining and would never have become such a large business.
If there were significant and sufficient public interest in recycling glass soda bottles and the Gov subsidized the refunds at high enough of a rate you could manufacture new bottles to turn in for the "deposit." You'd see investors pouring $ into plants for making glass bottles to "cash in" on the Gov money. Actually, you see, they would just be cashing in on tax money taken from the rest of us and the environment would not necessarily be helped.
Same story with corn-ethanol. Investors are profiting from corn-ethanol but not from selling the surplus energy created by the corn-ethanol process because there isn't any. Their "profits" are essentially "stolen" from the rest of us tax payers who are too ignorant to see through this idiotic charade and put an end to it. We'd rather work up a sweat bailing the Titanic with a thimble and be congratulating ourselves for having done something positive. Corn-ethanol is delusional.
There are lots of energy production methods loosely termed alternative energy. These encompass many methodologies. Few are viable alternatives to more traditional energy sources unless there is something skewing the playing field. In the case of corn-ethanol it is tax $ redirected to buy the votes of those profiting while playing a charade that fools many into thinking we are actually trying to do something about energy independence.
Pat