Biofuels Olympics

In an article in the WSJ, the demise of the biofuel industry is examined.  In an industry heavily subsidized and government mandated, how can it be possible that the industry isn’t a success?

Critics of the biofuels boom say government support helped create the mess in the first place. In 2007, biofuels including ethanol received $3.25 billion in subsidies and support -- more than nuclear, solar or any other energy source, according to the Energy Information Administration. With new stimulus funding, this figure is expected to jump. New Energy Finance Ltd., an alternative-energy research firm, estimates that blending mandates alone would provide over $33 billion in tax credits to the biofuels industry from 2009 through 2013.

Not all biofuels may be worth the investment because they divert land from food crops, are expensive to produce and may be eclipsed by the electric car. One fact cited against biofuels: If the entire U.S. supply of vegetable oils and animal fats were diverted to make biodiesel, production still would amount to at most 7% of U.S. diesel demand.

Read more here: WSJ

A better option than ethanol is the electric Hot Rod.  The Pinto is back without the exploding gas tank…

Read more here: NPR

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John W. Holt