Sunday, January 25, 2009

If We Have To Deal With Ethanol, Then We Like To Do It This Way.

MSU's New Cellulosic Ethanol Breakthrough is Cheap, Efficient
Jason Mick (Blog) - January 22, 2009 10:15 AM

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"A new process invented by Michigan State University helps to increase the yields of cellulosic ethanol at a reasonable premium

The world of cellulosic ethanol is a hot business. GM has already backed two cellulosic ethanol companies, Coskata and Mascoma Corp., and many others are taking a serious look at the new type of fuel. Essentially with the same advantages and disadvantages from a fuel perspective as normal ethanol, which it shares virtually the same chemical character with, the big bonus is that cellulosic ethanol can be made from plant waste of all times, reducing the price pressure produced by food-crop ethanol.

Using technology to produce cellulosic ethanol, the fruits and vegetables of food crops can ship to the market and the leftovers -- leaves, stalks, stems, and husks -- can be ground up and made into ethanol. One of the first targets is corn stover, the leftovers from the corn harvest, somewhat of an ironic source as sugarcorn (the food) became one of the two main controversial sources of food-crop ethanol.

Unfortunately, the processes to make cellulosic ethanol are still very inefficient. And while there are acid pretreatments that can improve the performance, freeing up more sugars from the cellulose and hemicellulose in plants to be used in fermentation, these treatments are costly. Typically the acidic product is toxic, so it must undergo intensive washing and detoxifying, leaching nutrients that could have been used in fermentation and raising the costs.

That's where Michigan State University comes in with a new patented process. Bruce Dale, University Distinguished Professor of chemical engineering and materials science at the university, has invented a cheap pretreatment process using ammonia, called AFEX (ammonia fiber expansion).

Its 75 percent more efficient than with traditional enzyme treatments says Professor Dale, and is easier and more affordable than acid pretreatments. The process frees up a lot of sugar to be used in the fermentation to produce more ethanol."

Thursday, October 9, 2008

The End Of An Era Already?

We have always been behind that fact that the corn fuel industry will go the way of the dinosaur as soon as the rest of the world wakes up and realizes what a crock of crap it is!

Gas prices in our area are down a whole dollar. The oil cartels made their money, then the speculators came in and jacked the prices up to make their money, and now they are out, OPEC is realizing that it might be wise to go back to profit by more quantity sold, thus lowering the prices.

What evidence do we have of this? Well, for one thing oil, once way over a $100 a barrel is now down again to under $85 a barrel. Ironically, the gas prices lowering do not reflect this yet. That will hit within the next 30 days, hopefully.

So how does this affect the E85 enthusiasts? Financial discord, short and simple. Now that oil is coming down again, watch how many "green" enthusiast drop their credo like a bad habit.

That leaves the post hippies, the college kids not actually producing money yet, and a few people who really do believe in "being green". Unfortunately for them that is not going to be enough to keep the E85 ball rolling. Below is an article from American Banker, proving the financiers are already scared to death and ready to bolt!




In Alternative Fuel Lending, The Boom Seems To Be Over
By Robert Barba
AMERICAN BANKER
October 7, 2008.

NOTE: Below are only excerpts, but you can read the whole article by clicking the link above.

"A lot of community banks in the Corn Belt did most of the financing," said Alex Moglia, the president of Moglia Advisors, a Chicago consulting firm for alternative fuel companies. "Many of these banks have staked their future on biodiesel and ethanol, and they are now scared to death. And they should be."

The economics for ethanol plants have shifted. Corn prices hit record highs over the summer and have softened only slightly since. Constructing ethanol plants has grown more expensive, and an ever-increasing supply of ethanol has outpaced demand and kept prices down."



Sunday, September 14, 2008

Need More Thinking Like This - Biofuel From Waste

Okay, we are in no way naive enough to think that making biofuel from waste material is going to free the United States from it dependency of oil. But we continue to focus on these types of stories because it does two things:

1) It definitely offsets at least some fuel (like in the following story). And

2) Any time you can turn waste into something useful besides landfill, it is always a good thing.

So we say kudos to Michigan Technical Academy high school!

School of fuel
BY PEGGY WALSH-SARNECKI • FREE PRESS EDUCATION WRITER • September 13, 2008

NOTE: Below are only excerpts, but you can read the whole article by clicking the link above.

"With Hurricane Ike bearing down on gulf coast oil rigs and gas prices that could head up to as much as $4.50 a gallon, one local school is managing to fuel some of its buses for a mere 80 cents a gallon.

Students in the Michigan Technical Academy high school in Redford Township, a charter school focused on automotive, electrical and college preparatory curriculums, are making biofuel from corn oil previously used to fry tortilla chips.

Besides making the buses smell a little like a Mexican restaurant, the biofuel program is teaching students that a little ingenuity can confront serious environmental issues. It all started when automotive technology director Marty Depowski wanted to keep his classes interesting."

Wednesday, September 3, 2008

Beware The Corn Evangelist - Harvest Time Cometh


Plant-based fuels have been a big disappointment to date, but new "green biofuels" might fulfill their promise.

by Chris Dannen on DiscoverMagazine.com

published online September 2, 2008

NOTE: Below are only excerpts, but you can read the whole article by clicking the link above.

"The New Plant Fuel
"Green diesel," as it's being called, isn't the first effort to use plants to power cars; your gas tank probably has a blend of gas and plant-derived ethanol inside it right now. But it's hard to get excited about biofuels when they already have such a bad rep. The use of corn and sugar in fuels has driven up the cost of food by a whopping 75 percent worldwide, according to a recent report by the World Bank. And a Nobel-prize winning chemist has publicized his findings that biofuels made from nitrogen-thirsty plants (like corn and canola) actually produce a net increase in greenhouse gas emissions, because they release nitrous oxide during their production. As if all that wasn't bad enough, ethanol blends hurt your car's fuel economy. Not exactly the makings of a green energy panacea."



We have been warning of this for a long time. It, therefore, is no surprise to us here at The E85 Scam. We are surprised, however, that there are still authors and reporters out there still talking about it.

The focus for the next weeks will be dominated McCain's pick of Palin for vice presidential nomination. After all the hoopla of whether or not the skeletons in the candidate's closet is enough to keep them from office, we might, and we say might optimistically, get back to some serious issues at hand.

You eco-soldiers can forget about the war, you are no real match to the boys in the south with their big 4 x 4s ready to roll over you. . . and those machines don't drink corn juice!

Wednesday, August 13, 2008

Don't Mess With Texas!

Texas Is Fed Up With Corn Ethanol
By Rick Perry, The Governor of Texas
THE WALL STREET JOURNAL
August 12, 2008. Page A21

NOTE: Below are only excerpts, but you can read the whole article by clicking the link above.

"At what price will corn be so expensive that the federal government will decide that it is time to stop driving up the price of food?

Three years ago, Congress imposed a Renewable Fuel Standard (RFS) mandate that has forced the gasoline industry to mix massive amounts of corn-based ethanol into the nation's fuel supply. In 2007, Congress nearly doubled that mandate to require nine billion gallons of ethanol be blended into gas in 2008 and even more in 2009."

"As we can see now, the diversion of our corn supply from grocery stores to gasoline pumps has caused the price of corn to spiral out of control. Corn prices were once driven by market forces. Today they are artificially driven up by a government mandate. In 2004, before the mandates were imposed, the cost of corn hovered around $2 per bushel. Now it is close to $8 per bushel.

This is driving up the cost of staple food items at the grocery store. And it is also driving up the price of corn-based feed, devastating the livestock industry to the point that Texas cattle feeders have been operating in the red since 2007."

"Last Thursday, the EPA announced it was denying my request. Why? Because the agency's agriculture and energy economists said the mandates are not causing sufficient damage to warrant action. This not only goes against common sense, but runs counter to the experience of Americans at the grocery checkout counter.

Denying Texas's request is a mistake that will continue to force families to bear a heavier financial burden to put food on the table than necessary and harm the livestock industry.

Supporters of the ethanol mandate have their hearts in the right place if they want to diversify this nation's fuel supply. But artificially propping up an industry to the detriment of the vast majority of Americans is bad policy.
And that's what this mandate does.

There are many sources of renewable energy in addition to corn-based ethanol. It is time America took steps to develop the technology to make use of these sources.

Texas is leading the nation in this movement. We are a top contributor to the nation's domestic fuel supply, and a leader in wind, biofuel and solar energy production. We harness the benefits of clean and efficient nuclear power, and are investing considerable resources in developing nonfood bioenergy such as algae, switchgrass, jatropha and camelina—all of which have minimal impact on food production and the environment. The U.S. would be wise to follow Texas's lead."


As jaded as we at The E85 Scam has become, we have to actually applaud The Governor of Texas. If not for him speaking out, we would have assumed G. W. Bush would be somehow trickling some of this oil money down to his home state's leader.

Texas is a Big state, not just in size, which it is, but in powerful U. S. money. Do not kid yourself, Hollywood's money is only illusionary as the movies they make. Texas holds high ranking money in many of the different industries in the United States. They have some of the best paid lobbyists that Washington has ever seen.

So, again, we applaud the Texas Governor, and we love saying, "Don't Mess With Texas!"

Friday, August 1, 2008

You Had Better Listen To Your Mother...


Corn Ethanol: Hero or Hype?
recently you’ve probably heard some buzz about ethanol. But corn-based ethanol isn’t the magic bullet solution to America’s oil addiction. Many nuanced and complicated issues currently swirl around this biofuel.
BY: LAURA EVERS and JOHN ROCKHOLD

"Up to your ears in ethanol hype? Before you choose E85 at the pump, consider the complicated issues behind this biofuel.
Ethanol is ethyl alcohol, sometimes called “grain alcohol.” It’s made by fermenting the sugar and starch in the corn into alcohol, which is then separated from the water by distillation.

In the United States, most ethanol is produced from corn. You’re likely to encounter ethanol as a fuel additive or as E10 (10 percent ethanol, 90 percent gasoline), on which any modern vehicle with a gas engine can run. Full-fledged ethanol fuel — E85 (85 percent ethanol, 15 percent gasoline) — has limited, although increasing, availability and requires a car with a “flex-fuel” engine. Unlike gasoline, ethanol is renewable, and it causes less tailpipe emissions.

Why isn’t corn ethanol the answer?

As gas prices and concerns about global warming skyrocket, demand for ethanol continues to grow. But increased use of corn and other grains to produce ethanol is one of several factors pushing up the price of food made from these crops (including meat from animals fed with grains).

Lester Brown, president of the Earth Policy Institute, who has studied these issues for decades, describes this as the beginning of a great tragedy. “The United States, in a misguided effort to reduce its oil insecurity by converting grain into fuel for cars, is generating global food insecurity on a scale never seen before,” he says.

Other issues relative to corn ethanol include:

  • In current engines, E85 provides about 30 percent less fuel economy than gasoline.
  • Ethanol cannot be transported through existing pipelines because it is corrosive and easily absorbs water. It must be delivered by trucks, barges and rail cars, which produces more pollution.
  • Converting remaining prairie, forests and rainforests into cropland will release CO2 and add to the problems of global warming. (Experts debate the extent of this concern.)
  • Even if all current U.S. corn production went to biofuels, we could offset just 12 percent of our current gasoline use, according to a 2006 study from the University of Minnesota.
  • Expanding ethanol production could diminish and pollute local water supplies.
  • The numbers are debated among scientists, but it appears that, at best, the energy produced by corn ethanol is only slightly more than the energy required to make it.
Can we get ethanol from other sources?

Cellulosic ethanol has huge potential to be a part of the solution to declining gasoline supplies. It can be made from non-food sources such as switchgrass and wood chips, and can be produced on marginal (non-food crops) land. Cellulosic ethanol is the subject of extensive and rapidly evolving research, as its energy bang for the buck is much greater than that for corn ethanol — with anywhere from twice to four or five times the energy output versus the input (depending on the source and production technique). Significant hurdles remain before it can become a widely available fuel, but recent legislation (see On the Road to Energy Independence) will encourage its development.

So what’s the verdict?

Ethanol alone won’t become America’s replacement for gasoline. Given the increasing human population, using grain for fuel rather than food promises to be highly problematic. There is reason to be optimistic about cellulosic ethanol, but even with technological breakthroughs it’s unlikely to be a wholesale remedy. Instead, we’ll need advanced biofuels among a variety of solutions, including increased fuel efficiency; lower speed limits and less driving; advanced public transportation; electric and hybrid-electric vehicles; and more."



This article shows that even a very liberal magazine like Mother Earth News sees the dangers of E85. We were so glad to see, not only speaking out against it, but actually published in their August/September 2008 (they are a bi-monthly publication).

We were so impressed, in fact, that we thought it necessary to post the entire article (there is still a link to it if you want to go there).

Way to Go Mother Earth News! We applaud you!


Thursday, July 24, 2008

The Message Is Spreading, Are You Going To Be Part Of The Revolution?

University study: Greenhouse gas goals achievable
by Stephanie Hemphill, Minnesota Public Radio
July 22, 2008

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"St. Paul, Minn. — As state lawmakers a year ago were setting a goal of reducing Minnesota's carbon emissions 15 percent by 2015 and 80 percent by 2050, lawmakers commissioned the University of Minnesota to conduct a study to determine whether the goal is achievable, and if so, how it can be done.

Julian Marshall is a co-author of the new report.

"We can meet our objectives, but we have to get going now," he said. "We have to begin sooner rather than later."

Marshall teaches environmental engineering at the University of Minnesota. He and his colleagues at the Center for Transportation Studies examined several strategies to see how well they would work to reduce emissions.

The strategies fall into three groups -- making vehicles more efficient; developing fuels that produce fewer emissions; and providing more choices in transportation.

The authors say Minnesota needs to use all three strategies in order to meet the goals in state law.

David Kittelson, a mechanical engineer who specializes in engines and fuels, says people in other countries, including Europe and China, are already driving cars that are as efficient as new U.S. standards call for 17 years from now.

Kittleson says high gas prices are prompting Americans to demand more fuel-efficient cars, and Detroit is starting to get the message.

"We can meet our objectives, but we have to get going now."
- Julian Marshall

"The American strategy was always to make a small car chintzy, a little bit noisy, a little bit frayed around edges, a little bit uncomfortable, so that you'd want to buy a bigger car," Kittelson said. "The Europeans have shown that you can make smaller cars comfortable, quiet, luxurious, and still get good fuel economy."

The report proposes what the researchers call a feebate system. The idea combines fees on gas-guzzlers with rebates for more efficient cars.

It says we need to move beyond corn-based ethanol to cellulosic biofuels which are made with non-food crops, such as switchgrass.

It adds that electric vehicles would reduce carbon emissions, but only if the electricity isn't made with coal. David Kittelson says wind power isn't the only option. He says Sweden gets one-third of its electricity from biomass, such as waste from agriculture and forestry.

"The best thing you can do to biomass is to put it into a power plant, burn it, make electricity, and use that to drive electric vehicles," Kittelson said."


We are liking the way Marshall and Kittelson think! We just wish the rest of the world would catch on.

We never really thought about the big 3 making small cars inconvenient to own to reduce sales, and although we are sure that it is purely speculative, it IS believable. Some of us here at TheE85Scam.com have worked in the auto industry for the last 20 years and have no problems believing it is possible from the waste and illogical decisions we have seen.

Wednesday, July 23, 2008

What To Do, What To DO? EPA Stalls For Time To Think.

Ethanol industry braces for EPA decision on its future

By David Streitfeld
Published: July 22, 2008

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"The ethanol industry, until recently a golden child accustomed to favorable treatment from Washington, is facing a critical decision on its future.

The governor of Texas, Rick Perry, is asking the U.S. Environmental Protection Agency to temporarily waive regulations requiring the oil industry to blend ever-increasing amounts of ethanol into gasoline. A decision is expected as soon as this week.

Perry, a Republican, says the billions of bushels of corn being used to produce all that mandated ethanol would be better suited as livestock feed than as fuel. Feed prices have soared in the past two years as fuel has begun competing with food for cropland.

"When you find yourself in a hole, you have to quit digging," Perry said during an interview. "And we are in a hole."

His request for an emergency waiver cutting the ethanol mandate to 4.5 billion gallons, from the 9 billion gallons required this year and the 10.5 billion required in 2009, is backed by a coalition of food, livestock and environmental groups. Farmers, carmakers, ethanol and other biofuel producers are lobbying to keep the existing mandates."



The EPA has decided to not decide, for the moment. They have pushed the decision off until some time in August. The decision they make will definitely affect Ethanol production and acceptance, either way.

It is always fascinating to us to watch government squirm over decisions like this. It is a bad position to be in.

If they decide to maintain the 4.5 billion, then in effect, they are admitting that ethanol increases that they have been singing praises for could have been wrong, and that would mean that government was wrong. Egg on the face sort of thing.

If they decide go forward with the 9 billion, and then the economic collapse from food companies creating shortages and panic, then they may have been right, but sit on the verge of an anarchical society for lack of food and fuel!

Oh what to do!?!?!?!?

We want to see the Texas Two-Step!

Of course we say swallow your pride and admit ethanol is a mistake, period. It is not like government has never been wrong before. If you are truly for the people, let's just pretend for the moment eh, then do what is best for them and stop this ethanol insanity!

Friday, July 18, 2008

Bad News For GM - Good News To Us At TheE85Scam.com

This week has indeed been, shall we say, troubling for General Motors. On Monday they released news that they are going to help state governments promote and add E85 gas pumps at stations. With the stocks plummeting and the faith in their stock holders all but gone, We are wondering where they will get the money to do this.

Then Wednesday came about and General Motors announced that it is reducing, if not eliminating, the medical insurance benefits of its white-collared work force (they can not do that to the blue-collared work force because they gave the control of benefits, and a large sum of money to the United Auto Workers to control and take over blue-collar benefits this last contract, which may have saved the blue-collar workers benefits, but in our opinion ironically hurt GM and helped contribute to their current financial liquidity issues).

So is this where the money is going to come from to continue heavy investing into the "FlexFuel" division and push E85? Maybe, it could be just coincidence too.

But, that is just the preamble to the actual post here we had in mind. So here is the bad news/good news story...
_________________________________________
J.D. Power And Associates 2008 Alternative Powertrain Study

NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.

"The study also finds that the percentage of consumers who are considering a hybrid-electric vehicle is up from 50 percent in 2007 to 62 percent in 2008. Consideration for flexible fuel (E85) capable vehicles—which are designed to run on gasoline or a blend of up to 85 percent ethanol—has decreased slightly from 2007 (47% vs. 43% in 2008), while consideration for clean diesel demonstrated the most notable decline from 23 percent in 2007 to only 16 percent in 2008. The drop in consideration for diesel technology may be attributed to the substantial increase in the relative price of diesel since 2007."
_________________________________________
Like we said, good news to us. But this is another blow to the mighty GM. Are they, already on the financial brink of disaster (a one time impossible thought), once again chasing a declining market? They are putting more into E85 FlexFuel programs, but we feel that they should continue on projects like the Chevy Volt instead.

Once E85, Ethanol, FlexFuel, Corn Gas, or whatever you want to call it, gets exposed for the farce that it is to all the public, we think that it will become just another history lesson. Then again, if history repeats itself, it probably won't. Not sure about you, but our history books were only filled with positive things in U.S. History, not our failures.

By the way, if you want to download a PDF of J.D. Power's Report, Click Here!

Monday, July 14, 2008

Of Course GM Has No Motive To Do This, Right?

Recently in the news, in fact as recent as last week, rumors and murmuring were heard on Wall Street about the One Time Blue Chip Giant, General Motors, falling below $10 a stock and cash reserve problems. Let's just say that regardless what fantastic story a skilled accountant can tell with the company books, once the "liquidity" of a company is questioned on Wall Street, it is never good conversation.

So it is no surprise to me, with as much money as GM has vested into the Ethanol/FlexFuel program, that they are willing to assist state Governors as to where to place new E85 pumps. Simple business math, more pumps available, more likely to sell FlexFuel vehicles. With that in mind, keep an open thought process when you read this article...

GM, Governors Will Work to Expand Ethanol Distribution in U.S.
by Edward Klump

"July 13 (Bloomberg) -- General Motors Corp., the biggest U.S. automaker, and the National Governors Association said they are working on expanding the distribution network for E85 ethanol in preparation for selling ethanol from non-grain sources.

The plan calls for GM to assist states in finding appropriate place to put ethanol pumps, according to a statement issued today. The Detroit-based company has helped bring 300 E85 pumps online in 15 states during the last three years. There are fewer than 1,700 pumps for E85, which is 85 percent ethanol and 15 percent gasoline, in the country out of about 170,000 gasoline stations, GM said.

Having more E85 pumps will provide owners of flex-fuels vehicles better access to the fuel. GM said it will make 50 percent of production flex-fuel capable by 2012, if the infrastructure is moving ahead. The company also has investments in two ethanol companies, Coskata Inc. and Mascoma Corp.

`This collaboration with GM will help increase the availability of E85 around the country, providing more consumer choice and moving us toward a more secure energy future,' Minnesota Governor Tim Pawlenty said in the statement."

_____________________________________________________________

Remember the old saying about a cloud and silver lining? There was one if you were watching carefully in this article. It was, "preparation for selling ethanol from non-grain sources".

So maybe, just maybe, they are starting to realize that E85 sucks to begin with, but if you HAVE to produce it, save our grain and find alternative production. Garbage, waste water, and other things being looked into now. The U.S. alone (not to mention the Garbage we take in from Canada) should produce enough garbage to create vast amounts of ethanol, one would think.