Posted on 09/30/2009 10:01:23 PM PDT by TigerLikesRooster
Makers of Ethanol Ponder Alternative
By RUSSELL GOLD
Some ethanol makers, battered by unpredictable profit margins and criticism that production of the corn-based fuel drives up food prices, are being presented with a way out: making biobutanol.
Biofuels entrepreneurs are hoping to snap up idled and financially distressed ethanol plants and convert them to make biobutanol, another plant-based fuel that can be blended into gasoline or used to make plastic products such as water bottles.
Denver-based Gevo Inc., a privately held biofuels start-up, is expected to say Wednesday that it is lining up financing to acquire and retrofit as many as five ethanol plants to produce biobutanol. The company hopes to purchase or partner with plants with capacity to make at least 200 million gallons a year. At going rates for ethanol plants, the total cost of the plants could exceed $125 million, according to industry experts.
Gevo, backed by renewable-energy investors such as Khosla Ventures and the French global energy giant Total SA, says it has successfully retrofitted its first plant, a demonstration project in Missouri, to show it can quickly and cost-effectively convert existing ethanol plants.
(Excerpt) Read more at online.wsj.com ...
Ping!
So how do you trade on this info?????
Had to dig to see, but this stuff can be made from inedible crops.
yitbos
Ethanol (alcohol) attracts water — its an engine buster if you do not use protecting chemicals to neutralize the effect. Many engine makers will not allow of 10% ethanol fuel to be used in their engines (Mercury Marine for one) or you will void your warranty.
BP in conjunction with Mazda racing used this stuff in a race car last weekend for a 10 hour endurance race. Although the race was shortened because of rain in the Atlanta area, the car finished first in its class in the P2 division. The car ran as unclassified because it was using an unapproved fuel, experimental only.
Don’t get me wrong, I am not a big supporter of this stuff but I think the engineers could get a car to run on dog slobber if they could light it on fire. BP has positioned itself to profit from this global warming crap for years and will take advantage of any publicity they could get.
A friend of mine owns a car that competes in that class so I did watch it on TV for awhile. Unfortunately, the water gremlins got into their electrics and caused all kinds of havoc.
Literally LOL !!!
It is an alternative, but still can't equal the quantity of petroleum gasoline.
As far as an investment, the ethanol plants will eventually be converted and bought by larger conglomerates. I think Conoco has just bought some. What are the odds? Just sayin.
Butanol has about 95% the energy density of gasoline per volume, unlike ethanol, which is around 67%, so it should have an advantage in that regard over ethanol.
yitbos
If this brings the ethanol debacle to a close using a market-based solution, it’s a win for everyone, including taxpayers.
Can't this be made from the parts left over after various crops are harvested? I recall something back in the late eighties about using the husks and stalks after corn had been harvested to make fuel that wasn't ethanol but can't recall what it was.
Regards
Which Democrat gets the biggest donation from the butanol industry? ..
Early skeptic
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