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26 Comments
It's Now 'Official': Ethanol Is a Scam
It's Now 'Official': Ethanol Is a Scam
DrCanDo - how do you think solar doesn't have a positive EROEI? Can you provide something to back up a statement like that??
Is Cellulosic Ethanol Always the Bridesmaid?
People here aren't really talking about peak oil, but we're at the onset of it now. That's why OPEC isn't raising their production quotas, despite record high prices (about 5 years ago they said $35/barrel was their target, otherwise people would pursue alternatives and conservation). They can't raise their production (stability in Iraq/Nigeria would help, however), so I would not be surprised to see $130/barrel by the end of the year. Any price drops will last less than 1/2 year, as it continues its relentless climb.
Hopefully the next president will be a lot more open to R&D and incentives for cellulosic ethanol, as that will be our only possible route to some degree of economic stability and avoiding utter dependence on OPEC in the next decade.
Cellulosic ethanol may take some cropland, but it doesn't have to be the high-maintenance, rich soil that corn requires with heavy pesticide and fertilizer requirements. Switchgrass for instance can be grown on non-irrigated acreage even in dry climates. If we can use lumber/tree leftovers from logging and construction, that would be another big source free of current crop production. But conservation will be an essential component of future plans. No passenger vehicle should get less than 30 mpg, for starters. We've got a serious problem and it takes hard answers sometimes.
Good News at VeraSun Energy
But unless there's a clear decrease in oil usage, it's not worth ramping up, except to reduce CO emissions on those ozone action days.
Sugarcane-based ethanol is clearly better, and a price-competitive cellulosic ethanol is the holy grail, particularly if made from waste material. But in the short term, for an alternative-energy stock trader, VSE is one of the better stocks to keep an eye on.
The Prius Conundrum
Tshock, unimpressed - apparently both Iceland and Norway are pushing the hydrogen agenda. I was unaware of Norway's efforts, and if the scope of that surpasses similar efforts (like California's hydrogen highway), but I know Iceland, at least early last year, eventually wants to run all their vehicles on hydrogen.
Lessons from the Toyota Prius for Alt Energy Stocks
However, we have no problem sending boatloads of money to countries that harbor terrorists. Petroleum is the single largest item on our trade deficit. So we feel free to waste energy, and some even think it's patriotic to run around in huge vehicles that endanger others and can roll-over in a heartbeat.
Lessons from the Toyota Prius for Alt Energy Stocks
Fewer people take extra measures on their homes because that takes more education and preparation. Most people simply haven't investigated those options. If they do, often they have to fight with the installer/salesperson to get the green options instead of mainstream products. And they're more expensive - you can't insulate a house, replace windows or a furnace for the hybrid "premium" present in a Civic Hybrid or Prius, about $3K or less.
I bought the Prius because I wanted a new car under $25K that got good gas mileage, was reliable, had interior space (it's classed as a mid-size car because of the interior volume, great back seat legroom), and had 4 doors. Since I intend to keep the car for years and years, I wasn't worried about resale value, but that is well above average. MSN lists this as the best overall value for a vehicle under $24K for the 3rd year straight (editorial.autos.msn.co...). Getting double the mileage in my old car was a nice bonus. I didn't care for the styling, would've preferred something nicer, but I've gotten used to it. It's aerodynamic and the hatchback is useful, something I appreciate as an engineer.
(And for the record, I have also reduced the energy costs in my home, which has a much longer payback period, but there's much more to do).
The Prius Conundrum
editorial.autos.msn.co...
The Prius Conundrum
1. CO2 is necessary, but we're at levels not seen for over 600,000 years. We don't need that much. It's a proven greenhouse gas, and it seems very likely our climate will change in ways that will make sustained economic growth difficult, to say the least.
2. Hydrogen is a scam. It's okay in certain situations (spaceflight, submarines, etc.) but not for vehicles. They're experimenting with this in Iceland (not Norway), but there they have abundant geothermal energy and no petroleum. Hydrogen needs to be made somehow, currently that's mostly from natural gas, hardly a green source. Electrolysis is another method, if you have lots of electricity. Fuel cells to power vehicles are still not below 6 digits, then add in difficulties in transporting and storing H2. Much better to skip that whole step of converting electricity to hydrogen back to electricity, and just store energy in modern batteries, run on EVs. That is the real future.
The Prius Conundrum
The Prius is now #8 for number sold in the U.S. (ahead of ALL Volvos put together, equal to all Subaru sales). It was #1 in vehicle demand (as measured by days on dealer lots) for 30 out of the first 36 months it was on sale. (Somebody needs to get outside Berkeley).
A Corolla is listed as 27/35 mpg, don't expect 40mpg, and doesn't have the same interior space. Real-world Prius results are about 47 mpg, I've averaged 49mpg, some careful drivers are in the 60's.
A Prius is classified as a mid-size car, based on interior space. Looking for a $20-$30K car that will save you money in the long term, the Prius is the best option, according to Consumer Reports (a couple years ago they weren't so sure on that, but the resale value has held up, expenses are low, gas prices have risen and will continue to rise). A Prius has a $2K hybrid premium at best, you can't change your windows or furnace for that kind of money (I know, I've done that too). If you're simply into saving money, buy a ten-year-old Metro, but if you want a new car, buy a Prius. (Honda Civic Hybrid is a close second).
I chose not to send my money to Al Qaeda, and to reduce our single largest item on the trade deficit at the same time. Wasting gas is simply not patriotic, and soon it won't be an option.
Ethanol: Three Developments to Watch
Alternatives are the future. I agree they aren't there yet, but to cut their funding is slapping our children's faces (and my retirement plans). This is what is treasonous to the American public. The oil supply is plateauing and we need to work hard and fast now to come up with good replacements. A breakthrough in biodiesel production (algae, for instance), battery storage, transportation (electric cars, more rail systems), this is what is needed and what will make a real difference down the road. It will take more than a few years to make it all happen, but our petroleum supply won't have enough years (why is Saudi Arabia cutting their production - is something happening with the Ghawar field they aren't telling us?) The more we dither now and try to keep the status quo, the harder the adjustment to a post-petroleum economy will be. This semi-recession will just be a post-note compared to that hit on the economy.
(By post-petroleum, I don't mean there won't be any petroleum like some wild-eyed peak-oilists, but that it will be so expensive we wouldn't dream of burning it up in our cars when it can be used instead to make all the things we expect in our society).