|
Staff Contributors
Guest Contributors
|
||||
Will ADM surrender gracefully to cellulosic ethanol?Posted by David Roberts at 7:57 PM on 10 Jun 2006![]() 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. ... 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. 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.
You are not logged in. Thus, you cannot post a comment. If you have an account, log in. If you don't have an account, well, by all means go make one! Meet you back here in five.
|
sign in
Search Gristmill
Using Gristmill
Recent Comments
|
|||