"US Insane Ethanol Biofuels Policies Cause of Food Crisis" -
16 Ethanol Plants File Bankruptcy
The US Ethanol Industry Is In Distress .
The U.S. ethanol industry is in trouble and can expect to see a rash
of bankruptcies and dismantling of at least some production, according
to a specialist who helps companies in distress.
Alex Moglia, president of Moglia Advisors based in the Chicago area,
said he knows of at least 16 ethanol companies that are filing for
bankruptcy, and there will be at least two to three times that number
filing within the next year.
The weakness of the U.S. dollar makes it possible for foreign
investors to acquire ethanol plants "at a deep discount," he said.
"They can buy as low as 20 or 30 cents on the dollar," Moglia said.
"That should scare the hell out of anyone in the biofuels industry.
I've worked with plants that are incomplete, others that can't offer
profitably so they've all shut down. This will shake out most of
small- and mid-sized players. Larger players will survive because they
have buying power."
More ethanol producers will continue to file bankruptcy, he said,
because of high feedstock costs and a "limited upside flexibility in
terms of how much you can sell ethanol for."
"The demand for ethanol is not there," Moglia said. "The same thing
happening to ethanol is happening in the biodiesel business. It will
be the Wal-Mart-ization of the ethanol industry. It's just a mess."
Peiffer said many ethanol plants are and will be folding because "the
business model they were built on doesn't work." Farmers and their
cooperatives have either borrowed money or pledged their land as
collateral in building ethanol plants, he said.
For every 10 ethanol and/or biodiesel plants "you read about in the
media, there are probably 50 to 100 others that are in financial
difficulty and are contemplating shutdown," Moglia said.
Since ethanol production is mandated by the federal government, he
said they are already "operating outside free-market fundamentals.
Ethanol Tariffs An Economic Failure
Ethanol Producer Magazine is reporting Brazil launches campaign to
remove ethanol tariff .
The Brazilian Sugarcane Industry Association is launching a public
relations campaign on the Fourth of July designed to encourage the
American public to pressure the U.S. Congress into removing the 54
cent ethanol import tariff. The 2008 farm bill extended the tariff,
designed to support an emerging U.S. ethanol industry and to prevent
foreign ethanol producers from benefiting from American subsidies,
The Are We There Yet? campaign, which consists of an interactive Web
site and television ads, is supported by various U.S. food and meat
processing companies. The association chose to launch its campaign on
the Fourth of July holiday because it's one of America's busiest
“Americans are being denied an opportunity to save money at the pump,”
said Joel Velasco, chief representative for UNICA. “There is a
solution that could have an immediate impact on [the] price at the
pump – lifting the tariff on imported ethanol.”
A World Bank Report suggests Biofuels behind food price hikes .
Biofuels have caused world food prices to increase by 75 percent,
according to the findings of an unpublished World Bank report
published in The Guardian newspaper on Friday.
The report's author, a senior World Bank economist, assessed that
contrary to claims by US President George W. Bush, increased demand
from India and China has not been the cause of rising food prices.
Without the increase in biofuels, global wheat and maize stocks would
not have declined appreciably and price increases due to other factors
would have been moderate," the report said.
Barack Obama voted for turning mountains of our own precious food into
water contaminated, low energy ethanol fuel that is a financial rip-
off and a substantial cause of food price inflation. Barack Obama
does not have a clue about economics, science, or mathematics, and he
is irrationally is trying to vilify the very people who can give us
lower priced gasoline if we only let them.
Oil price increases have not shrunk the human food supply, but biofuel
production has. The more biofuels we produce, the less food we have
to eat, because we grow biofuel crops, even switchgrass, using the
same land, water, fertilizer, farm equipment, and labor we use to grow
food. Biofuel production accelerates global warming, creates water
shortages, and erodes topsoil. A new study says biofuels from
cellulose sources, such as switchgrass, wood chips, crop waste, etc.,
will never be cost effective.
See biofuel facts and better alternatives, see -
In any endeavor, there needs to be trial and error, experimentation
at early stages. Most know that there are other sources for biofuel
but the big media are not covering this very much.
This video shows a father present with his children who has set up a
single unit machine that both grows and converts algae into biodiesel!
You can do something like this with recycled 2 liter bottles, fused
together in tall strands.
The machine will probably be cheap to create.
There is also talk about algae fuel that is usable in gasoline engines
and has other properties of crude oil
to make other products.
Also, you might note the HHO hybrids people are making
in their own garages. There are literally over 300 hundred
YouTube videos on these.
My two cents,
TC (yes, I do own and drive an electric vehicle) not 100% of the time
but quite a bit.
What's the problem? The BATF would flip. Every farmer would have ethanol
jugs at roadside stands that would be untaxed. Then too, a bacteria can
convert ethanol to butanol, which has the same BTU rating as gasoline
and could go right in the tank.
Then too, there's the new aluminum/gallium alloy that generates hydrogen
reported at Purdue and the U of MI. a 1kg canister and 20 gallons of
water would push a car 350-600 miles. And you could recharge it in your
Course, that'd require a dramatic increase in grid power, but that could
be done with wind turbines on the high plains. The alloy could be
smelted and recharged there and then shipped to consumers. Again, this
would disperse power in ways the government and transnationals dont like
cause then they could not skim the profits.