Topic: Got corn or sugar? Fortunes will be made off renewable energies

[Jack Morris]

http://www.ethanol.org/

And a short article from Special Edition of Forbes magazine.

Ten companies with staying power:

One of them is Archer Daniels Midland (ADM). The ADM is the ticker symbol for their stock.

One curious byproduct of the recent oil spike has been the accompanying rise in sugar cane prices. What's the connection? The world's biggest producer of sugar cane, Brazil, also happens to be the biggest producer of Ethanol. (Wow, imagine that! A Latin American country leading the way and leaving the U.S. in it's fossil fuel dust.). And higher oil prices have resulted in more sugar cane being diverted from food to ethanol production. That's led to a 60% rise in sugar prices since June of 2004.

Geoff Blanning, a London based commodities fund manager with Schroders, thinks sugar is the leading edge of what will be an across the board surge in agricultural commodity prices (Good, it's about time rural America got some!) So many industrial countries are turning to biofuels (Certainly not us  ), to help bring down energy costs and promote energy independence (Bush loves to hold Abdullah's hand, so Ido not see us promoting it) that demand for corn, rapeseed oil, palm oil, and other crops is sure to soar (Bet it  will suck when you have to buy groceries, maybe people should be like the Germans, they have home gardens and utilize everything they can), he says. It's already happening in Europe, where industrial demand for vegetable oils (Diesel engines can run off that stuff) has increased 75%  in a little more than 2 years. Wow!!!!!!

Assuming you do not want to dabble in commodities futures, ADM is the easiest way to play this food-to-fuel trend. Analyst David Driscoll is so bullish on ADM biofuel prospects - ethanol now accounting for 23% of it's profits - that he has dubbed the company "an energy growth story." ADM is the biggest U.S. producer of ethanol, which in turn has made it a huge beneficiary of the newly passed energy bill (Bet that pissed off the oil people  ). For starters, the bill gives refiners a 51 cent per gallon subsidy for every gallon of ethanol they use in their blends (WTF? Why should we subsidize oil refiners when they are posting record profits?). Better is the minimum renewable usage requirement that starts at 4 billion gallons a year in 2006 and rises to 7.5 billion in 2012. (Screw that, I'd raise it billions of gallons each YEAR). Driscoll expects ADM's calender year earnings to rise 33% in 2006 - excellent for a company with a 17 P/E ratio and 1.4% dividend yield.

And now, for biodiesel:

http://www.biodiesel.org/

Hmmmm, Pun, that station that just opened is in San Diego! 

http://www.biodiesel.org/resources/pressreleases/gen/20060208_WillieNelsonSanDiego.pdf

I wonder if Willie sang the "cowboys are secret lovers" song, hahahahahahaha...

 

[Jack Morris]

   
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As a Desert Shield/Desert Storm veteran, it greatly concerns me that we still rely on a fuel that is non-renewable, polluting, and gives the nations of Islam a huge income beyond belief from trade deficits, yet here we have a renewable and clean burning fuel that is has been on our nations farmlands for years and we do nothing while Europe has increased imports of vegetable oil for use as biofuel at a whopping 75% in less than 2 years!

It's time to get off the oil tittie and let agricultural America be reborn and keep the money flow in our nation!

http://www.ethanol.org/

I'm very disappointed that we subsidize refiners at 51 cents per gallon to use ethanol in their blends. I bet private ethanol companies can do it better, but then you D.C. types would lose your beloved oil lobbyist money. Especially the Village Idiot.
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  Tell it like it is!

[Grand Master of Shadows NCC37385]

Why are the just talking about sugar cane? Sugar beets produce the same amount of alcohol per acre as sugar cane (roughly 500 gal/acre). The US is a leading producer of sugar beets right behind France.

[Jack Morris]

I dunno william, ask Forbes. You do have a good point, and they are much easier to grow in the U.S. than sugarcane. I'll do some research and see if it is a viable biofuel source. You may be on to something. 

[Jack Morris]

http://www.choosemaryland.org/assets/document/Beets.pdf#search='sugar%20beets%20as%20alternative%20fuel'

Seems some sharp people with an eye towards the future are already on it with sugar beets.

[Grand Master of Shadows NCC37385]

Thats what Im talking about, Jack. Think about the millions of tons of organic waste products that can be used as fuel.

I come from a long line of moonshiners. I know about making alcohol.

Not only alcohol, but any kind of vegetable oil, when "cracked", can be used directly in a diesel engine with little or no alteration of the engine. We currently pay farmers not to produce crops. It costs the taxpayers billions to fund these no-grow programs. Remove these programs and let the farmers produce as much as they can. This will reduce the cost of "bio-diesel" so that it is even cheaper than "petro-diesel" and will reduce the tax burden on taxpayers.

[Jack Morris]

I think public sentiment is putting a lot of pressure on the politicians, especially with the success of biofuels worldwide. We shall see if those D.C. cats can let go of those petrodollars from the lobbyists and do the right thing for the nation for once. Heck, even China is gearing up. Brazil is leading the way? Europe is switching? WTF are we doing?

[Grand Master of Shadows NCC37385]

I think public sentiment is putting a lot of pressure on the politicians, especially with the success of biofuels worldwide. We shall see if those D.C. cats can let go of those petrodollars from the lobbyists and do the right thing for the nation for once. Heck, even China is gearing up. Brazil is leading the way? Europe is switching? WTF are we doing?

Not alot. This technology has been around for decades. I remember when I was a kid, my grandfather running off a few hundred gallons of "shine" to run in his oil heater. Corn prices had dropped to a point where you couldnt recoup your investment. Corn was around $1.60-$1.70/bushel and it cost about $2.00/bushel to grow. He altered his heater by enlarging the injectors and installing a screen in them. He used about 140 proof shine and heated his house for the winter. It was actually cheaper than the K-1 he normally used.