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Will ADM surrender gracefully to cellulosic ethanol?

Posted by David Roberts at 7:57 PM on 10 Jun 2006

Read more about: energy | biofuels | ethanol | cellulosic ethanol

Don't miss a great piece by Sasha Lilley about Archer Daniels Midland and ethanol: "The dirty truth about green fuel."

The latter part covers the environmental sins of corn-based ethanol -- familiar to Gristmillians -- but the first part provides some crucial context. It's about ADM.

Here's a taste:

ADM has more than 25,000 employees, net sales last year of $35.9 billion, with $1 billion in profits, as well as a recent 29 percent profit increase in the last quarter. The company is a global force: ADM is one of the world's biggest processors of soybeans, corn, wheat, and cocoa, which it buys from growers in the U.S. and around the world. ...

...

... Since the 2000 election cycle, ADM has given more than $3 million in political contributions, according to the Center for Responsive Politics: $1.2 million to Democrats and $1.85 million to Republicans. These donations may have helped sustain a multitude of government subsidies to ADM, including ethanol tax credits, tariffs against foreign ethanol competitors, and federally mandated ethanol additive standards.

...

ADM's political heft was behind the 54 cent per gallon tariff that the US government has imposed on imports of sugar-cane based ethanol from Brazil, which is cheaper than ADM's corn-based fuel.

ADM secured that tariff from Jimmy Carter. They've been gaming the feds for favors for a long, long time and are deeply entrenched in the D.C. power structure.

Now. Consider. Any time the fatal flaws of corn-based ethanol are raised, ethanol proponents pivot to the glorious future of cellulosic ethanol. The latest is Indiana's Dick Lugar, here on Grist:

It's true that right now we're not getting much in the way of cellulosic except rhetoric. And there's no question that cellulosic is far preferable to corn in terms of oil savings. In 1999, Jim Woolsey and I in an article in Foreign Affairs magazine pointed out the vulnerability, strategically, of energy and talked about the promise of cellulosic ethanol. President Clinton praised it and said this is the way of the future.

But the fact is, the implementation of all this didn't happen then and it isn't happening now. The corn-based ethanol facilities are technologically several steps ahead of the cellulosic, but I have no doubt that the market will select for cellulosic in the long term, and I believe we have to incentivize it in that direction. Our ethanol targets in the American Fuels Act are weighted toward cellulosic.

President Clinton praised it. Bush Jr. praised it. Everyone's praising it. And it's still hovering just over the horizon.

Meanwhile, the corn-ethanol infrastructure is being built and any number of powerful constituencies are getting accustomed to corn-ethanol subsidies. Once this infrastructure is in place, once these subsidies are entrenched, do we really think it will all be abandoned in favor of cellulosic?

As Lilley puts it:

If [the shift to cellulosic] happens, it will be a marked reversal of many decades of government policy in support of Archer Daniels Midland -- and the company may well wonder what it's getting for its unceasingly ample gifts to both political parties. But with the "full-throated support of the Bush Administration", in the words of the Renewable Fuels Association, a corn ethanol-dominated, ADM-led trade group, that day doesn't seem to be approaching any time soon.

cellulosic

It's actually hard to tell when an energy technology is "just around the corner."  The problem is that they need invention, not just methodical work or construction, to get them on-line.

As someone said, to predict the future, you've got to go ahead and invent all the things the future will have in your mind, and then write up a future based on them.

Futurists results at that are actually pretty spotty.  Things around the corner do not always come, or they are sometimes bumped out by something from left field.

Sadly, research groups become lobbies in the same way production groups do.  Right now there are cellulosic researcher, and hydrogen researchers, and battery researchers all telling our government just the best possible story they can.  I wouldn't be surprised actually, if "around the corner" appears in each one.

No, I'm afraid the ethonol thing is different and is actually playing into ADM's hands.  That is that cellulosic may not work, or may be a long ways away, but:

It is the promise of cellulosic ethanol that sells the ethanol subsidies today.  They might face serious opposition based on their current performance, if they did not have the cellulosic story to tell.

Which is a moot point also

Corn ethanol is not a bridge to cellulosic. If we stopped making it today, and waited until commercially viable cellulosic was pouring out of refineries, we would not be pissing away billions on subsidies in the mean time and we will not have to fight the corn belt politicians when the time comes to shut down their corn ethanol empires.

In the end, it all comes down to biodiversity. Poison Darts--Protecting the biodiversity of our world
The future

One group will drive gas guzzlers filled with liquid fuel, oil based, corn based, cellulose based  whatever.  The vroom vroom sound makes their day.

Another segment will drive electric vehicles powered by wind and solar.

The first segment of consumers will start to diminish as gas (liquid fuel mixture of varying percentages of earth destroying substances) goes towards 10 bucks per gallon and beyond.

The electric  group will grow.  Those who go to renewable electric sooner will save tons of money and feel good about not hearing the vroom vroom.  Earth hangs in the balance.  

"And so it goes." (Kurt Vonnegut)

 

http://amazngdrx.blogharbor.com/blog John Schneider, Northern Wisconsin

distilling ethanol

I remember way back during the OPEC oil embargo in the 1970s that distilling ethanol was a significant problem of net energy value.  The near the end of the embargo a suggestion was made to freeze the water in big tanks during the winter and drain the alcohol.  Then the embargo ended.  This parasitic energy will also exist with cellulosic ethanol.

All energy subsidies should end.  The money could be put to better use at the universities for research and development.

Switchgrass?

That's the devil weed! Expect factual documentaries like "Switchgrass Madness." Tell your children about the horrors of Switchgrass!

The other side...

Switchgrass most likely eats birds as well...I mean, c'mon, we've all seen that nasty tree from Harry Potter...the Corn Lobbyists will make that their poster child against cellulose Ethanol.

GroovyGreen.com | Start Today :: Save Tomorrow
Evil is goin' on

We have already proven agribizz chemically poisoned,  fossil fertlizised and fueled, fuel farming to be evil. Hehey.

Corn, switch grass, sugar cane,what have you.

But ADM will have to claim that only switch grass fuel farming is evil.  Why?  Because it uses conservation reserve cropland that stores carbon.

We know the truth.  Only renewable electric transportation energy works to stop global climate change, reduce soaring energy costs and economic devestation from importing oil, and stop oil wars and resulting terrorism.

All those goals need to be acomplished with the correct energy policy.

Fuel farming only stops a small percentage of imports, most of it will be imported from Brazil.

It makes global climate change worse by using up natural carbon sink ecosystyems and soil.  And will do nothing to stop oil wars or reduce energy costs.  

In fact it extends the reign of the disastrous internal combustion engine and it's 14% efficiency and greenhouse gasiness !

 

http://amazngdrx.blogharbor.com/blog John Schneider, Northern Wisconsin

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