The latest Ethanol news article from today, 02/02/11.

http://www.dailyfinance.com/story/co...lose/19821242/

Nothing really new here, but nice to see Ethanol in the news instead of all about the middle east.

 

I wish they would get out the news about 2nd generation without feeling the need to throw first generation ethanol (corn) under the bus though. The article further lost credibility by quoting Ted Patek. Corn ethanol is capped at 15 billion gallons by the RFS (we are already making 12.88 billion gal with plant capacity for 14 billion)- it is not going to go away but instead will be the base that these other feedstock (gen2 and 3) will build on to to increase total supply. What these "throw under the bus writers like to ignore is the feed byproducts that come out of these gen 1 corn plants. Not many gen 2 or 3 processes are likely to generate BOTH feed and fuel. As corn yields continue to climb-corn will quite easily fill the balance of the 15 billion gal needs (we are right there anyway) and the rest will end up as exported corn (along with the new and growing distillers grain exports).

I say hurray for the new feedstocks of the future and continued growth of the industry-- but also hurray to the corn ethanol plants that laid the groundwork and will continue to thrive. I would also point out that there would have been dire consequences to the ag industry had they continued trying to sell corn at the old prices in the face of sharply escalating fuel, fertilizer, and seed prices. Corn would have gone up anyway OR the govt would have had to throw far more farm support money to try to make sure enough feed was out there. It is time to stop throwing the tax credit to oil companies for blending 10% ethanol (99% of the credit expense) but E85 will need at least 1/2 of the current tax credit due to a problem with state and federal motor fuel taxes that are based on gallons- not btu- without this E85 users will pay almost 2X the road tax per mile that diesel users pay.