AN ELECTRONIC NEWSLETTER ABOUT ENVIRONMENT,
RENEWABLE RESOURCE TECHNOLOGY,
AND RELATED TOPICS
By BOOTSTRAP PRESS, INC.
BETHESDA, MD
JJGREENBARON@CS.COM
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JANUARY 31, 2007
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WELCOME!
The Green Baron welcomes one and all who take the time to read Muenchhausen. He aims to “tell it like it is” as much as possible, and avoid advocacy and ideological positions. There are enough of those to go around in other publications.
FUEL “FARMS”: HIGHER FOOD PRICES? A REPRISE:
The Green Baron wrote the following in Muenchhausen January 19, and repeats it just below:
Several articles in the engineering, science, and popular press have warned that the rush to produce ethanol as a motor and energy fuel could cause food prices to go up on a broad scale. Why? The quickest, most rational method of producing ethanol for fuel currently involves using corn or sugar as feedstock. The corn and sugar thus withdrawn from the food market will perforce cause that which remains to increase in price, perhaps dramatically.
It also has been proposed to use the dead plants that remain from the corn harvest (the “stover”) and other grain chaff as ethanol plant feedstock. Normally, such chaff is left in the soil to help it retain at least some fertility. Otherwise, the soil could become far less productive. Ethanol could be made from municipal waste, but a viable technology for that is still down the road; moreover, what needs to be determined for all modes of ethanol production is whether the fuel values obtained will be worth the energy input to derive them.
The Green Baron had the rare opportunity to express personally to Speaker of the House Nancy Pelosi (D, CA) his concerns about the reduction in food and feed production. Speaker Pelosi replied that Congress is bearing these concerns in mind, and that The Green Baron might wish to contact Rep. Collin Peterson (D, MN), who represents a rural district on this topic. Rep. Peterson has become Chairman of the House Agriculture Committee. The Green Baron might just do so in the near future, but let him add this caveat (not in Muenchhausen’s January 19 issue): “perhaps with the possibly vain hope that he can get an objective answer from a politician.”
CONCERNS PERHAPS BORNE OUT
Let us continue our brief discussion about ethanol, fuel “farms”, and such. Here is one view by one of America’s foremost economics writers:
“President Bush joined the biofuels enthusiasm in his State of the Union address, and no one can doubt the powerful allure. Farmers, scientists, and venture capitalists will liberate us from insecure foreign oil by converting corn, prairie grass, and much more into gasoline substitutes. Biofuels will even curb greenhouse gases. Already, production of ethanol from corn has surged from 1.6 billion gallons in 2000 to 5 billion in 2006. Bush set an interim target of 35 billion gallons in 2017 on the way to the administration's ultimate goal of 60 billion in 2030. Sounds great, but be wary. It may be a mirage” (1)
Samuelson reminds us that ethanol yields about two-thirds (about 67%) of the energy of gasoline. He “does the math,” so to speak and shows how small the amount of imported oil displaced would be. Because of population increases in the United States and other factors, demand for fuel will rise sharply between now and 2030—about 7.5 billion barrels of oil in 2006 versus perhaps 9.2 billion barrels of oil or some equivalent in 2030. (Please remember that for oil, 1 barrel equals 42 gallons. Thus, 60 billion gallons of ethanol production per year, if at all achievable, would displace perhaps 1 billion barrels of gasoline; again bear in mind the lower energy yield of ethanol.)
The Administration’s goal is to produce 60 billion gallons of ethanol—that’s good old beverage alcohol—a year by 2030. The interim goal is 35 billion gallons by 2017. If all of this ethanol is to be made from corn, it is questionable whether the Bush administration’s goal is attainable.
For perspective, let us look at corn-to-ethanol production numbers for recent years. For 2000, the annual production of corn-derived ethanol was 1.6 billion gallons. For 2006, this figure rose to 5 billion gallons. This production increase led to increases in the price of corn, at $3 a bushel in late 2006, up from $2 at the end of 2005. Moreover, in 2000, perhaps 6% of the U.S. corn crop was used to make ethanol. As of 2006, about 20% of the corn crop went to ethanol. With corn-to-ethanol plants sprouting on the prairies like mushrooms, one might expect a doubling of corn-to-ethanol by 2010 (1).
Another reason for the rush to fuel farms and plants at the expense of corn grown for food and feed is that fuel plants can generate profits for investors faster than agriculture can. Actually, many farmers and agribusinesses would benefit. For example, the $3-per-bushel corn price in late 2006 was the highest in a decade (1).
It was not without good reason that The Green Baron expressed concern about fast-rising corn prices and the ripple effect that would have (feed costs go up, and so do those of, say, meat products, just for openers). Here is what The Green Baron came across on Jan. 27: In a small town in Mexico, Nezahualcoyotl, east of Mexico City, prices of tortillas, a staple food in Mexico, especially among the less-privileged classes, have been rising rapidly (2). Tortillas constitute a main protein source among Mexico’s poorer population; they have been made by the same method since at least Aztec and Maya times. According to the U.S. Department of Agriculture, via Bloomberg News, Ohio No. 2 yellow corn—yellow corn is the principal corn portion of most tortillas—sold at $3.82 a bushel as of Jan. 26, 2007. It should come as no surprise that prices for tortillas are soaring in Mexico, and leading to much discontent among poorer portions of its population.
The government of Mexico is tinkering with caps on tortilla prices. However, government-mandated price caps work spottily at best, and currently are being honored much more in the breach than in the observance (2).
ALTERNATIVES TO CORN
To be discussed in the next posting of Muenchhausen.
REFERENCES:
Samuelson, R.J. Blindness on Biofuels. The Washington Post, Jan. 24, 2007, A23.
Roig-Franzia, M. A Culinary and Cultural Staple in Crisis. The Washington Post, Jan. 27. 2007, A1.
WHAT IS BOOTSTRAP PRESS?
Bootstrap Press is a nonprofit organization founded in Bethesda, Maryland, U.S.A., to promote the development and management of technology and businesses based on renewable resources. We also encourage the preservation of our Earth's natural habitats and its plant and animal species. So do a lot of other organizations, and more power to them for doing so!
Bootstrap Press is different because its members believe that the development of renewable resources and the preservation of habitats and species are receiving far more lip service than the financial and technical support needed to achieve these goals. We also think they will continue to be subjects of more talk than action until someone can show how renewable resources and the diversity of biological species can be the basis for potentially profitable businesses as well as a matter of ethics. Bootstrap Press intends to provide a forum for the discussion of how to build up such business, and of related topics.
There's one more thing we should mention about Muenchhausen and Bootstrap Press. We try to present only the scientific and technical facts that are correct to the best of our knowledge, belief, and good faith. It is up to Muenchhausen's readers to draw their own conclusions and make their own judgments.
NOTE: The mention of a product or service in Muenchhausen is in no way to be regarded as an endorsement of that product or service by Muenchhausen, Bootstrap Press, the Green Baron, or any other contributor to Muenchhausen. Also, the views expressed in Muenchhausen are The Green Baron’s own, and are based on the best of his knowledge, belief, and good faith.
Labels: Ethanol fuel, fuel "farms"




