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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (198673)	3/9/2007 7:12:13 AM
From: kech	Read Replies (1) \| Respond to of 793895

energy balance of ethanol relative to the energy balance of gasoline This is BS. How do I know? We have to subsidize Ethanol to sell it. I don't know if you read this far in the posting, but he seemed to address your point about the subsidy. But just as surely as profits are high and margins exorbitant for ethanol producers today, additional capacity, maybe even excess capacity is coming on line rapidly. There is more capacity under construction and under planning today (planned to be operational by 2008) than we have built in the last twenty years in this country. Payback periods for new plants are six months instead of the seven years investors would normally expect! Ethanol production costs in the US today are about $1.00 per gallon before any subsidies or taxes, If $1.00 production cost is correct, then there is a big gap between $1 and the current price of gas, about $2.50. I don't think subsidies are in the range of $1.50 per gallon of ethanol.