The biofuel scam--and it's a 'beaut'

When it comes to navigating a way out of the nation's energy crisis, you have to wonder whether the fix is already in.

The government has picked the winner--even as senior policy makers issue bland pronouncements about finding new technologies to help break our energy dependence on foreign oil. Between now and 2012, biofuel subsidies will total more than $92 billion, according to a recent report conducted under the auspices of the Global Subsidiaries Initiative.

The timing is coincidental, but the report came out just as Senate and House leaders were weighing a plan which would leave renewable energy out of the next congressional energy bill.

I'm sure there's some larger logic to explain that omission. But it might have a little something to do with the political muscle of the farm interests, a powerful lobby that knows its way around the corridors of power.

The 2007 farm bill features strong support for biofuel subsidies--even with crude oil prices hovering over $90 a barrel.

I've read a number of expert studies questioning the environmental impact of biofuels--especially the production of corn ethanol. Yet few policy makers of any national significance are stepping forward to question whether our national bet on biofuels makes good sense. That hasn't stopped Washington and various state capitols from lavishing billions of dollars on agribusiness' pet project. Most of the $92 billion I mentioned earlier will go to ethanol production.

All this is giving the cynics a field day. Each dollar spent on biofuel subsidies is a dollar not getting invested in other, possibly cleaner technologies. But the only people squawking seem to be the folks involved from those particular fields. I'm not advocating dumping ethanol research and production, but the selling of biofuels as the all-American favorite has been a marketing tour de force. That doesn't necessarily mean it's smart decision-making.

[sethum1]

Biofules - the new perpetual motion machine

It's sick how much money is being forked over to the massive corn barons. The sad fact is that corn probably uses up as much or more energy and petroleum-based products (in the fertilizers and heavy farm machinery) than it could ever provide in the form of biofuel. Of course, there are several other plants that have a much higher ethanol output energy ratio, but they aren't corn, so they don't get any attention.<br /><br />I wish government spending was determined by what could provide the greatest benefit, rather than which lobbyist would appreciate it the most.

[Phillep_H]

Subsidies

Several politicians receive millions in subsidies. <br /><br />Why aren't they mentioned in the news media?<br /><br />LOL, guess the party.

[dbennettjr71]

If "Evolution Fuels (EVFL) "-branded fuel stations is the first retail bio-diesel outlet established in the United States, then why are they not getting recognition from the current Federal Administration? Why has Congress not acknowledged their accomplishments as well? The current consensus of the population is to go green. We are also encouraging the philosophy of reducing our independence on foreign oil. Why are we not promoting more domestic companies to follow the direction of EVFL. I think once the government backs the domestic companies with their complete support, and acknowledges their existence, more companies will follow. Is recognition not warranted in this case? Is the problem only corn or the new Industry?

[Vonmaxx]

Spend this money on coal to fuel conversion

Energy problem would be solved for the next 180+ years!!! That <br />would be enough money to build 5 conversion plants, Gas would <br />be stable at less than $2.00 bucks per gallon and we could tell <br />OPEC to go take a flying leap.<br /> How high do you want your grocery bill to go, Because corn"FOOD" <br />should not be made into fuel. People need to eat!!! People are <br />Starving to death every day, They need this corn to eat.

[Draq Wraith]

Coal to diesel technology

well here we are long after nazi germany used this technology to power their war machines looking at it as a way to power our machines today instead of rethinking the powerplant that drives our machines.<br /><br />Ethanol was a failure in 1903, 1978, but might do OK today.<br /><br />peanut oil was a failure shortly afterward.<br /><br />hydrogen is looking promising but the energy it takes to produce is still too much for the result.<br /><br />Wind power and solar power are the best the easiest and the cleanest tech we have today.<br />We need the technology funded researched and developed more!<br /><br />We have out paced our supplies of fuel for our cars trucks and planes. We need congress to raise the Miles per Gallon bar fleet wide to make the oil last longer.<br /><br />We have the scientist, the skilled workers, the engineers, and the Artist to design any thing we need and want, Why not put them to work and cut the upper management and CEO salary to real levels and put that money saved in R and D.<br /><br />To me corn isn't the answer either because other crops are needed too to sustain life as we know it on this blue marble. So lets put the money were we truly need it and that is R &#38; D for the replacement of the Gasoline engine, jet turbine, and others.<br />D~W

[grtgrfx]

Most food corn goes to high-fructose corn syrup...junk food!

While you're right that corn should be grown for food, not fuel, <br />because it's grossly inefficient, let's not kid ourselves about corn <br />consumption in this country. <br /><br />The agrobusiness interests in America are only pushing forward <br />the ethanol agenda because it will produce even higher profits <br />than is now created by sticking corn syrup into everything <br />consumers eat. I'd almost prefer that there be a corn shortage <br />for soft drinks, potato chips, candy bars, and all the other <br />villians in today's fat-full diets. <br /><br />Unfortunately, I'm pretty sure the main reason that Con Agra <br />and ADM are foisting biofuels down our throats is because <br />consumers are starting to wise up and buy less corn-syrup-<br />saturated junk food, endangering their obscene profit margins.

[Jkirk3279]

No big fan of Ethanol, but...

People, at least not Americans, don't eat #2 feed corn.<br /><br />That's the grade of corn being used to make ethanol. It's <br />primarily used to fatten pigs and cows.<br /><br />And even after it's processed to make ethanol, what's left is <br />called Distiller's Grains.<br /><br />It's high in vitamins, and guess what, it's an ideal animal fodder. <br />More nutrition per pound than plain corn.<br /><br />Distiller's Grains has only one downside. <br /><br />If you're going to feed it to cattle it needs to be used up within <br />two days to avoid spoilage.<br /><br />And since it comes out of the ethanol plant kind of wet and <br />heavy, it costs money to either ship it to the hog farm or dry it <br />first.<br /><br />The answer is to build the ethanol plants near cattle farms, or <br />vice versa.<br /><br />The cattle farmers buy the Distiller's Grains, the Ethanol plant <br />sells the ethanol, everybody's happy.<br /><br />Now, if only the government were to sponsor the Butanol <br />technology instead of Ethanol. <br /><br />Butanol is also an alcohol, it just burns a lot better than ethanol <br />does.

[gerrrg]

I sooooo agree!

C'mon folks, I can already see the push for biofuel being used as an excuse for increasing productivity through genetically altered corn. Duh.<br />Besides, are we really going to reallocate water meant for humans and our food supply to be used for biofuel production?<br />We should be spending research dollars to increase the productivity of clean technologies such as wind, solar and wave energy. What if the country spent $100 billion a year for 2 years to provide direct grants for 1 out of 10 households to install solar panels and batteries? That would be the most amazing, direct impact on our carbon footprint, ever.<br />What about another $100 billion a year for 2 years for direct grants to 1 in 10 households to halve the cost of buying a hybrid vehicle? We drastically impact our carbon footprint AND our oil independence.<br />I say, take that, OPEC!#$#@!#!!!

[ferretboy88]

How about Hydrogen?

Water comes out of the tail pipe and we don't have to buy oil from ********* in the middle east and other ********* countries.

[albizzia]

Problems with H2

Hydrogen is clean, but it is also absurdly bulky, getting enough stored in a car is a challenge. All storage methods devised so far - high pressure tanks, cryogenic liquification, metal hydrides - are very expensive and still take up lots of room. H2 is the smallest of molecules, leaks are a problem, and it dissolves into steel, making it brittle. <br /><br />Fuel cells are far too expensive for average people to afford, and using H2 in inefficient internal combustion engines results in very short driving range and very high per mile cost for fuel. <br /><br />But worst of all, the cheapest source of H2 is from natural gas, and the biggest source of natural gas is... the middle east. <br /><br />There are clean alternatives to H2 that are cheaper and better. The future is electric.

[SeekTruth]

Didn't Ethanol lose out in the 70's?

The problem with bio-fuels, smart-fuels, or any alternative fuel has nothing to do with whether they are good for the environment or not, right for us to use, or viable enough to replace current fuel sources. The problem and main concern of our government and big business is: Is the fuel source going to make them money? It's all about the bottomline, and nothing to do with what is actually right for us and for the world! Ethanol is great in the short term. However, what would happen to food and fuel stores of corn when pesticides stop working, then insects swarm and diseases decimate those stores? It's inevitably a non-renewable resource. There are many alternative fuel/fuel cell technologies in use that are viable and in use today that no one wants to accept. What about electric, bio-diesel, soybeans, hydrogen, wind and freakin' solar? Not that it is the best, but enough bio-diesel could be made off of all the fast food this country eats to keep oversized, overpowered, ego tripped SUV's and sportscars on the road and being driven by silicone impregnated trophy wives, high strung soccer moms and conservative christian right wing republican straight white american males for along time. It might also be chic to eat all that greasy gutbomb goodness again! Sorry, I've had a few beers. That's it a car that emits "beer" is what we need. Really, why are we letting our elected government, which is funded by special interests, determine what is going to drive us into the future?

[Dango517]

Ethanol wasn't a consideration in the seventies. It's a new idea.

Why do you think Ethanol would rule out any or all of the other alternative energy sources being considered today? Wouldn't that be a major error. Ethanol isn't an "all or nothing" proposition but it would be a major source of automobile fuel. Biodiesel is being considered as well, in addition to electric. Hydrogen fuel may even one day be a viable fuel source but not in the near term.

[ccsurber]

Don't give in to the anger...

You have a lot of anger. Just let it out, man. Then direct your <br />attention towards changing the way we live, drive, and elect our <br />politicians. You registered to vote? Participate in our government <br />process. If that doesn't work, you can always do that American <br />thing...revolution.

[hardedge]

I want to starve

Any fuel based on a food crop is a really dumb idea, so don't worry about dumping ethanol. We have at least a decade and a half before hydrogen can begin to be real. Electric vehicles are a joke. (Picture New York or Los Angeles with air conditions running and blackouts. Now add charging cars to the grid... not to mention what do you do with the toxic batteries --battery rentals are a joke.)<br /><br />Between then and now, we need to add a few more refineries, perhaps a little more coal power, and some nuclear plants. Our goal shouldn't be clean energy before we've conquered energy independence. And if we don't do that, we should probably do something in the Gulf before China sucks all the oil out of the area and then resells it to us for $110/barrel.<br /><br />We didn't start out as a stupid country and we darn well better stop acting like one soon.

[bdplaid]

lots of complaints, few answers

One can see this as bad, or one can see it as good: is it better for the agribusiness to get tax dollars, or for the oil companies?<br /><br />or should we just ***** about it and offer no suggestions?<br /><br />we're a nation comprised of huge corporate interests - we have been since the industrial revolution - and there have always been paranoid people to complain. maybe rightly, maybe not. let's not let our paranoia hinder progress, though.<br /><br />what i think is good is that at last the US government is taking a few baby steps toward getting away from oil.<br /><br />as for suggestions - i'd like to see us go more toward diesel. those engines run on almost anything (rudolph diesel designed the engine to run on peanut oil, but any vegetable oil - and petro oils, as well - will suffice as fuel in a diesel with the proper tuning). <br /><br />so maybe ethanol not the single answer, but most think a combination of the technologies will win the day.

[billmosby]

Here's an answer

How about a combination of all the sources that make economic, <br />energetic, and supply-availability good sense? Here are a few <br />suggestions: nuclear, wind, solar. And for the farmers who just <br />want to get rich, how about just doing a bit less work and <br />producing a bit less food? The market will take care of the rest, and <br />you won't have to actually starve us all out in the process. Just <br />starve us enough to make us a bit healthier.

[emil serban]

there is not one silver bullet but a multitude

This is an unfortunate situation when people compete for a limited resource: public money. The author of the post is not in the bio-fuels payroll but on solar or alternative resource. he reality is that there is not one solution but a multitude and all of them should be given a fighting chance: diesel, hybrid-electric, electric, bio-fuel, solar, wind, waves, geo-thermal, nuclear, etc. All have advantages and disadvantages and would fit better in one region or another. Try and use al technologies that give an advantage over the status quo and you're bound to improve way more than any single techology applied universally. This is why we are wher we are: the primary rule of wise management was ignored and an excessive reliance on one resource allowe a monopoly to develop and dictate it's terms. Solutions are many... not one...

[keith.r.benedict]

E85 is a scam

My vehicle can use E85, although I wouldn't consider it since it's actually less efficient than petroleum-based fuel and causes more damage to the engine. E85 is 30% less efficient, so you'll use a lot more fuel. It's also impossible to find in California since nobody actually sells it to the public.<br /><br />I love seeing all these commercials from GM, Ford, etc. touting how their cars run Flex-fuel (E85), when you can't even buy the stuff.

[ccsurber]

E85 not a Scam

I've been using E85 for about 8 months straight in my Chevy Tahoe <br />and am pleased with the results. Currently, I'm payng anywhere <br />from 80 cents to a dollar less per gallon than gasoline (about 33% <br />less) while only taking a 24 percent max drop in mileage <br />(depending on driving conditions). So it is a viable alternative--<br />especially not using foreign oil. Recent reports are showing E85 is <br />actually less damaging to your engine. so where is the scam?

[DAL]

Food for thought

Corn as fuel (for the body) should be our priority. Starving or malnourished die every day in countries seldom mentioned.<br /><br />Alternative fuels should be (more) renewable than a corn crop. Costing more to fertilize, irrigate, apply insecticide, harvest, trasport, process (you get the picture) than wind or solar.<br /><br />As mentioned previously, it's about money. Who are the few getting rich from our simple needs as citizens?<br /><br />The older I get, the less sense this world makes.

[indedave]

"Global Subsidiaries Initiative"

When I Google "Global Subsidiaries Initiative" all I get is this article. What a "beaut" of a "scam."

[indedave]

This is old news

Go to <a class="jive-link-external" href="http://biopact.com/2006/10/subsidies-for-uncompetitive-us.html" target="_newWindow">http://biopact.com/2006/10/subsidies-for-uncompetitive-us.html</a> for an analysis of this report that is more than a year old. Blogs like this are a waste of time.

[mooninbluewater]

Nobody Seems To Have Done The Math

BTU-yield per acre X arable acres in US &lt;= 25% of gasoline currently consumed in transportation sector ALONE. May not even be possilbe to develop it fast enough to cover increase in demand, let alone current requirements. Not to mention we become dependent on foreign sources for all our food...

[billmosby]

Absolutely correct.

Not enough land to make a dent in the fuel supply. But I'm sure the <br />powers that be have done that math, since it's so easy. I'm equally <br />sure the powers that be are confident in being able to get what <br />THEY need and so don't give a rat's bee-hind about doing more <br />than proposing and promoting programs which provide the most <br />political effectiveness for the least work. Ably abetted by the "drive <br />by" or "mainstream" media, take your pick.

[Blito]

If every small town had a windmill it would solve the problem

With these large windmills if every small town in America used one or two they can power the whole town. It would solve our problems right there. Again we are going in circles.

[Seaspray0]

I wish it would

I love windmills and support them but there are some facts you should know.<br /><br />They are cost effective in generating electricity. Not every place is suited to windmills because of their wind profile. Windmills can provide large quantities of power but if the wind dies, you need have to supply that power from another source (makes reliance on windmills alone impossible).<br /><br />That's the biggest dissadvantage, reliance on the wind which is unpredictable. If you can find a good way to store that energy for use later, I would appreciate it. Even so, windmills are a great way to reduce our reliance on oil but as of now, it won't eliminate it.

[mchinsky]

ha

As long as the windmill isn't within Ted Kennedy's line of sight...

[newlanc]

Windmill

Every small town does not have enough wind to power a windmill all of the time

[Oberion77]

Americans are ignorant and proud of it

Most and I do mean most Americans could care less about BioFuels vs Alt Fuels. The only thing they care about is "How much will it cost to fuel my car?"<br /><br />They dont want to change cars to use alt fuels or worry if Corn Ethanol is the right choice. Dont believe me, look how we vote people into office!<br /><br />FACT: The process of making Corn Ethanol causes as much pollution as driving standard Gas vehicles.<br /><br />FACT: Corn Ethanol is cheaper to make in the US and produces more fuel than say BioDiesel.<br /><br />FACT: Sugar Ethanol is a better alt fuel (look at Brazil) however the Taxes to import sugar are twice the price as imported oil!!<br /><br />FACT: BioDiesel does not produce the yield as Corn Ethanol- making the "pump" cost more than Corn Ethanol<br /><br />FACT: BioDiesel requires NO MODS to existing Diesel engines (short of new filter and fuel line, the biodiesel is not big on rubber hoses)<br /><br />FACT: BioDiesel making process has two by-products: methyl esters (biodiesel) and glycerin (usually sold to be used in soaps and other products). The process does not add to the problem as Corn Ethanol.<br /><br />The US has such a bad taste over diesel from the 70's that they wont listen to the BioDiesel story. I see it every day. They simply dont care. Once again it?s the Money in Washington that is pushing Congress like sheep to do what the money wants. We are all paying for it. BioDiesel is "RIGHT NOW" probably the best option for the US. Sugar Ethanol is just as good, but how many Sugar Lobbies are there compared to Corn?

[pmchefalo]

Feedstock for Biodiesel is Fats, Ethanol Carbs

These two fuels are complementary, not necessarily competing. The "corn oil" left over from ethanol production (where the carbs are fermented) are sold with the cellulosic remainders (that didn't ferment) as distillers grain.<br /><br />BTW, glycerin will likely be in great over-supply if biodiesel plants come on-line, reducing the economics of biodiesel production.

[tmcmurph]

Lumping

Burn coal in a pure oxygen environment, capture the exhaust with Greenfuel Technologies algae farm setup. What does that give you?<br /><br />Electricity and a feedstock for biodiesel. Add in the wind, sun, run of the river hydro and all other renewable electric generation.<br /><br />So lets run the cars on electricity, keep the money for fuel in the US (got plenty of coal), more jobs in the US, the companies are US (A123, Altairnano, Greenfuel).

[billmosby]

Gives you a nice theory.

When they find the magic algae strain, maybe you'll have that <br />system working for real.

[spothannah]

More for wind and solar.

I live in Kansas and Huge Coal-powered Electricity Generating Plants were just blocked because of the CO2 problems. Big Coal has gone on the defensive and bought off some of our legislators. Kansas has tremendous wind resources (and I don't just mean the politicians.) The money required to build the coal-powered generating stations could be spent on Wind generation technology. Our politicians are crooks and get paid by the Coal industry. Help us. Please.

[Oberion77]

Agree

I am so tired of the elected officals in this country just getting BOUGHT OFF!!! So much can be done with Wind and Solar. The new hot tech now is also Tidal Power. Turbines that turn with the tides. EU is looking heavy into it.<br /><br />I live in MA and the wind turbines here are always getting fought. The Cape Cod Wind Farm will never finish so as long as our elected officals take the biggest pay off. Yelling at them doesnt seem to help.<br /><br />Look at the energy we can create from Wind.

[Jkirk3279]

Coal

The sad irony is that the Coal plant Kansas Secretary of State <br />blocked, was planned to be ultra-modern and environmentally <br />friendly.<br /><br />The plans as I read about it were to include an Algae Farm to <br />capture the stack emissions and a sort of environmental "theme" <br />park for visitors.<br /><br />The Algae Farm approach, if honestly scaled up to full power, <br />would let your power utility burn coal with LESS emissions than <br />standard oil fired plants.<br /><br />The algae are harvested, pressed for their oil, and then burned as <br />fuel in the power plant.<br /><br />The oil can be used for bio-diesel.<br /><br />I never thought I'd be sorry to see a coal fired plant be denied a <br />permit !<br /><br />And yes, if you're about to ask, if a power utility wanted to build a <br />coal gasification plant near me, and I was SURE they were serious <br />about the carbon sequestration, I would have no real problem <br />with it.<br /><br />On the other hand, if somebody wanted to build a Nuclear plant, <br />I'd move.

[grayboe]

Economics

If an alternative fuel needs more than a start-up subsidy then it isn't economically viable. It will always require a subsidy. Corn ethanol costs more to grow and convert to fuel than the power it produces. If the government is going to waste our tax money why not just give us all a few gallons of free gas?

[gerrrg]

options.

The issue should be:<br /><br />a. Do you want to spend continuous subsidies, as you have indicated, on ag?<br />b. Do you want to spend one-time grants to install clean tech - windmills, solar, etc?<br />c. Do you want to just give out cash to the oil/energy companies by giving out free gas?<br />d. Do you want to spend ongoing money to fund R&#38;D to gain efficiencies and find new technologies?

[KRz9292]

BLOGS

This may be a scam.<br /><br /> But shouldn't a "journalist" present some material backing up his <br />claims? If he claims that certain info is bunk who are we to believe <br />that his "opinion" isn't bunk as well?

[1setag]

BIOFUEL SCAM -- wham/slam

Good to read your blog! Biofuel is indeed a scam. Have you read "Who's Fueling Whom?", Sept.'o7 Smithsonian, by Richard Coniff -- a realistic analysis that should be a cover story rather than hidden at back of the issue. Also in National Review 11/5/07 -- "How Do You Keep Them Down On the Farm..if all they make ia a lousy mil?" by Stephen Spruiell.<br /><br />Entropy is not dead -- every conversion of energy (chemical to mechanical to electrical and back to mechsnical) results in a loss of its availability and increse in the temperature of the environment. An elementary law of 'Nature 101'. Nature made the first conversion for us -- biomass to useable carbon -- for free. The only source of useable energy that does not cause further increase in the temperature of the environment is SOLAR.

[billmosby]

You were going great until...

You said: "The only source of useable energy that does not <br />cause further increase in the temperature of the environment is <br />SOLAR." As currently constructed used, solar collectors of many <br />kinds do increase the temperature of the environment because <br />they capture more solar energy than the earth does. The earth <br />reflects about 30 percent of sunlight back into space, while solar <br />collectors (PV, solar thermal, solar water heaters...) are designed <br />to absorb as close to 100 percent as possible. No matter what is <br />done with the energy subsequent to capture, it appears as heat <br />in the atmosphere. If reflective surfaces were included alongside <br />the collectors, there would be no problem except for a loss of <br />energy production potential due to a reduction in usable area. <br />Install them over black roofs? Well, if we start to use them in a <br />really big way, that "solution" will be inadequate. Besides, there <br />are those who complain about city heat island effects from solar <br />absorption in general. Why give solar energy systems a pass? <br />And maybe all those black roofs should have been white all <br />along anyway.

[kenny-J]

We aren't going to do a thing`

Same thing happened in the 70's, prices got to where the oil bandits wanted them, there was plenty of oil then, and people got used to paying the price. The hoopla about lessing dependence on oil had the same intensity, but when it was plentiful again, everybody went back to sleep.<br /><br />Hillary Clinton has said she would push for a 40 mpg goal by 2020. So, it would seem she is saying in a backdoor way that in 2020 we will still be dependent on oil. So much for visionary leadership.<br /><br />Biofuel is a myth--there is not enough ariable land to grow food and biofuel crops, especially given the explosive growth in population.<br /><br />Global warming seems to be a myth. Local &#38; Federal governments are doing nothing to alleviate the gasoline that is burned in rush hour traffic and the drive through windows. Al Gore certainly hasn't changed his lifestyle.<br /><br />It's all a lot of politically correct sabre rattling that is going nowhere.