Friends,

I would like to suggest we ask if a policy of replacing liquid fossil fuels for transportation with ANY form of ethanol makes any sense at all? Does this strategy yield the greatest degree of energy independence?

Consider, even cellulosic ethanol at 5:1 net energy will be burned in an I.C.E. with only 30% efficiency. As a result, the true net energy of the ethanol I.C.E. system is a mere 1.5:1

Given that buildings are the source of 48% of climate changing gases, perhaps we should look at a displacement strategy. That is, if we use solid biofuels for space conditioning we can re-allocate the displaced fossil fuels to transportation.

Our grass-based pellet fuels have a net energy of 14:1 and are combusted in systems with at least an 83% efficiency [USDA FS & PFI data]. As a result, the true net energy of grass fueled space conditioning is on the order of 11.6:1. This is a 673% increase in net energy of the system compared to ethanol.

Clearly a displacement strategy will yield much better returns on investment on many
levels.

Lastly, consider the disastrous impact of the $6.60 per million BTU ethanol subsidy on the Ag commodities market. This market had been relatively stable since 1996. Today, thanks to the ethanol mania, it is explosively volatile. Soy beans are heading for a 19 year high — perhaps as high as $12 per bushel.

If my company got the same subsidy per million btu produced as ethanol gets today, I could sell my fuel at a very nice profit for $70 per ton. This would provide space conditioning energy for the equivalent of 60 cents per gallon #2 oil. Think you might find that price attractive?

Why are we allowing the government to pick winners and losers with the grossly unfair
subsidy that is limited ethanol? There are many biofuels. Why not treat them all
equally? I thought the idea was to create a level playing field and let the market decide? Silly me. The ethanol subsidy is a heavy duty reality distortion field that is badly corrupting the market place. We should correct this situation.

Very curious.

I look forward to your thoughts.

Jock

-- JockGill