Ethanol Strategy... do we have one?

[ianben]

Tom
One would hope so but do we understand the conditions?

Guaranteed supply or none at all!

I will start a new thead

[TOM4CWB]

Ianben;

Cargill is masterful at promotion... a little threat is involved in what you have identified...

Much more will be gained with a little honey... than with a stick... don't you think?

[ianben]

Looks like UK not got much of an Ethanol stratergy either if this is to be government policy

RENEWABLE energy has received a boost in the government's Energy White Paper, announced on Monday (24 February).

But fuel from crops is given little mention in the 142 page document that outlines the UK's proposed energy policies for the next 20 or so years.

The White Paper Our energy future – creating a low carbon economy sets targets of reducing carbon dioxide levels by 60% by 2050.

Energy from renewable sources, such as wind, solar and biomass from farmed crops, "will become a more significant source of electricity" states the document.

An extra £60 million of capital grants is set to encourage investment in renewables, which the government hopes will supply at least 40% of the nation's energy requirements.

Currently the UK lags behind other EU countries with just 1.3% from renewables, compared to Denmark's 16.7%.

Infrastructure will also be improved to give renewable energy plants better access to nationwide and local electricity grids.

Meanwhile the government has decided to reduce nuclear power's share of the energy market, currently around 25%.

Combined heat and power units, such as small-scale community projects fired by biomass, are also expected to be big winners in future energy policy.

"CHP’s overall fuel efficiency is around 70-90% of the input fuel - much better than most power stations which are only up to around 40-50% efficient," said the White Paper.

Future encouragement, to double current CHP output by 2010, will include planning and price incentives, as well as looking at using such projects to heat government buildings.

But the White Paper has already been criticised for making little specific reference to fuel from crops, while wind, solar and other technologies have firm backing.

Biofuels receive little more than a mere mention in a 12-page chapter on low carbon transport.

"It is simply insufficient to offer aspirations and warm words," said Country Land and Business Association head of rural economy Oliver Harwood.

"Wind power alone cannot be the answer for renewable electricity.

"Energy crops remove carbon from the atmosphere, provide habitat for wildlife, increase rural employment opportunities, and add to fuel security."

The National Farmers' Union said that measures to help CHP units would be useful, but these were not exclusive to biomass plants.

"If the government really wants to meet its obligations then it must work with the agricultural industry," said NFU alternative crops committee chairman Rad Thomas.

"It is the only sector that can supply the raw materials needed."

Estimates suggest 25% of UK land could produce all the nation's transport fuels using the latest technologies, without compromising food security.

The government received criticism from other industry sectors for resigning the UK to being a net energy importer.

With coal, gas and oil reserves all likely to be exhausted by 2010, the UK could be dependent on imported energy for 75% of its total energy needs by 2020, according to the White Paper.

[TOM4CWB]

Ianben;

With $38/barrel US oil costs today... ethanol will have a chance... but what happens when oil falls to $15/barrel?

If Ethanol cannot maintain the higher price the whole biofuel industry will be in big problems...

Solution:

If we can afford to operate today at $38/barrel... then it is obvious that when oil prices drop in half, we can still afford to pay the higher price for the biofuels... this is not an option for the biofuel industry... it is a must.

If we can get Ethanol a good base price that is stable... we will have a biofuel industry over night... and oil prices will drop like a rock...

But, we will still be way further ahead replacing petrol with biofuel... as oil prices will have major competition and oil reserves will last much longer!