dtblount

Is the Ethanol Mandate Likely to be Repealed?

You all are giving the US Congress (with around 20% approval ratings) way too much credibility.

I strongly believe that the ethanol mandate will not be repealed simply because of significantly lower corn prices AND the fact that the infrastructure is already mostly in place to produce and distribute corn-based ethanol.

While it is definitely not the most efficient or socially responsible form of biofuel, it will be in the peripheral focus of US energy policy because the US has an enormous competitive advantage in corn production, as the US produces about 43% of the world's corn.

Cellulosic ethanol, wind power, solar power, biodiesel, sugar-based ethanol, clean coal, nuclear power, LNG, GTL, and even some algae tech I've read about lately should all be used as the US seeks to diversify away from "foreign oil." A modern economy is one of diversification, and with energy driving economic growth, there is no reason the US should have been dependent on oil for this long.

I could rant on and on about how I believe in supply-side economics, but I'll leave it with this: the US government needs to create a legal and tax environment that accommodates alternative energy research, development, production, distribution, and implementation and PE/VC money from Silicon Valley to Boston and everywhere in between will fund it and make some new billionaires along the way.

Never underestimate three things: human ingenuity, human creativity, and human greed...


Cheers