BP (NYSE:BP) announced it has acquired a majority stake in Cia. Nacional de Acucar & Alcool (CNAA), a Brazilian ethanol and sugar producer, for $680 million.
CEO Robert Dudley said in a statement, “This strategic acquisition underlines BP’s commitment to building material businesses in growing economies and continued expansion in Brazil through exploration and production, as well as biofuels investments. This is the biggest acquisition to date for BP Alternative Energy as we continue to build a leading low carbon fuels business.”
The giant oil company is still waiting on the Brazilian government to approve its acquisition of offshore exploration licenses in Brazil in 2010 from Devon Energy (NYSE:DVN).
What BP gains control of in the CNAA deal is two producing ethanol mills in the Brazilian states of Goias and Minas Gerais. A third mill is being constructed at Minas Gerais as well.
BP closed Friday at $45.75, up $0.09, or 0.20 percent.
Showing posts with label Ethanol. Show all posts
Showing posts with label Ethanol. Show all posts
Monday, March 14, 2011
Thursday, February 24, 2011
Grassley Rightly Say Cut Budget and Ethanol Subsidies
Cutting the deficit is more important than protecting the ethanol industry if it comes to that, says Sen. Chuck Grassley, long the biofuel industry's most powerful ally in Congress.
Grassley said Tuesday that he would vote for a deficit-cutting bill even it includes two House-passed provisions that are intended to slow the ethanol industry's growth.
"As significant as it is to me because I'm a great ethanol fan, if in fact those things were in the bill to cut the deficit ... I'd have to bite the bullet," Grassley said.
A House-passed bill would cut federal spending by $60 billion this year. It includes a measure that would block the U.S. Environmental Protection Agency from increasing the amount of ethanol that can be added to gasoline from 10 percent to 15 percent. A second measure would bar subsidies for retrofitting service stations to sell higher amounts of ethanol.
Full Story
Grassley said Tuesday that he would vote for a deficit-cutting bill even it includes two House-passed provisions that are intended to slow the ethanol industry's growth.
"As significant as it is to me because I'm a great ethanol fan, if in fact those things were in the bill to cut the deficit ... I'd have to bite the bullet," Grassley said.
A House-passed bill would cut federal spending by $60 billion this year. It includes a measure that would block the U.S. Environmental Protection Agency from increasing the amount of ethanol that can be added to gasoline from 10 percent to 15 percent. A second measure would bar subsidies for retrofitting service stations to sell higher amounts of ethanol.
Full Story
Corn Supplies Tight on Record Demand
Corn and soybean supplies will remain tight this year even as increased plantings set the stage for record or near-record harvests, U.S. Department of Agriculture chief economist Joe Glauber said Feb. 24.
Exports and ethanol demand are expected to grow, keeping corn prices near historic highs and squeezing profit margins for beef, dairy and pork producers, Glauber said during an address at the USDA’s annual Outlook Forum in Arlington, Va.
“Unless this year’s weather is better than normal or plantings increase more than expected, stock levels for corn and soybeans should see only modest rebuilding in 2011-12,” Glauber said. “This will likely mean continued volatility in those markets.”
Corn futures in Chicago rallied 52 percent last year as the U.S. harvest produced weaker than expected results and prices continued higher in 2011, reaching a 31-month high near $7.25 a bushel earlier this week.
Rapidly escalating feed costs are an increasing concern for beef and pork producers, who in early 2010 returned to profitability after the 2008-09 recession contributed to deep losses.
Full Story
Exports and ethanol demand are expected to grow, keeping corn prices near historic highs and squeezing profit margins for beef, dairy and pork producers, Glauber said during an address at the USDA’s annual Outlook Forum in Arlington, Va.
“Unless this year’s weather is better than normal or plantings increase more than expected, stock levels for corn and soybeans should see only modest rebuilding in 2011-12,” Glauber said. “This will likely mean continued volatility in those markets.”
Corn futures in Chicago rallied 52 percent last year as the U.S. harvest produced weaker than expected results and prices continued higher in 2011, reaching a 31-month high near $7.25 a bushel earlier this week.
Rapidly escalating feed costs are an increasing concern for beef and pork producers, who in early 2010 returned to profitability after the 2008-09 recession contributed to deep losses.
Full Story
Tuesday, December 21, 2010
GM (NYSE:GM), Ford (NYSE:F) Joining Battle Against E15 Ethanol
With the potential to do extraordinary damage to vehicles and machinery, the obsession by some with forcing more ethanol on the American people is being opposed by a growing number of people and corporations, with GM (NYSE:GM) and Ford (NYSE:F) the latest to join the battle against increasing the ethanol mix in gasoline.
They know when vehicles they sell end up getting damaged from ethanol, it'll be them that have to pay to cost of fixing it, or possibly even being sued over it.
The increasingly destructive Environmental Protection Agency forced the mix of gasoline to go up from 10 percent to 15 percent in October, creating the parameters of limiting it to cars and trucks that are newer.
All that stands between destruction of a vehicle (assuming it is safe for new cars and trucks) is for someone to accidentally put it in a vehicle it's not made for.
The answer of the Environmental Protection Agency is to be sure the pumps are marked. Really! That's it. That's what stands in the way of consumers and the destructive E15 ethanol forced on American drivers.
At this time the guidelines offered by the EPA is that cars built in 2007 and later can use E15. The EPA is incredibly and reportedly going to waive cars built after 2001 as well.
Hopefully consumers will refuse this nonsense and continue using E10.
As for safety, even E10 is known to cause a tremendous amount of damage to just about every type of small engine and many older cars as well.
Lawmakers ignored or neglected the opportunity to end this farce when they voted to extend the tax cuts last week. Now we'll have to continue on with this menace until next time the issue is raised.
They know when vehicles they sell end up getting damaged from ethanol, it'll be them that have to pay to cost of fixing it, or possibly even being sued over it.
The increasingly destructive Environmental Protection Agency forced the mix of gasoline to go up from 10 percent to 15 percent in October, creating the parameters of limiting it to cars and trucks that are newer.
All that stands between destruction of a vehicle (assuming it is safe for new cars and trucks) is for someone to accidentally put it in a vehicle it's not made for.
The answer of the Environmental Protection Agency is to be sure the pumps are marked. Really! That's it. That's what stands in the way of consumers and the destructive E15 ethanol forced on American drivers.
At this time the guidelines offered by the EPA is that cars built in 2007 and later can use E15. The EPA is incredibly and reportedly going to waive cars built after 2001 as well.
Hopefully consumers will refuse this nonsense and continue using E10.
As for safety, even E10 is known to cause a tremendous amount of damage to just about every type of small engine and many older cars as well.
Lawmakers ignored or neglected the opportunity to end this farce when they voted to extend the tax cuts last week. Now we'll have to continue on with this menace until next time the issue is raised.
Friday, November 12, 2010
BP (NYSE:BP) Makes Bid for Brazil's Cerradinho
Reports from a Brazilian newspaper say BP (NYSE:BP) has made a bid for Cerradinho sugar and ethanol group, based in Brazil.
BP has reportedly offered $466 million to gain a 50 percent stake in the company.
According to the O Estado de S.Paulo newspaper, talks have been going on for several months, and the board of Cerradinho is expected to give an answer one way or the other soon.
Neither company would comment on what the identified as market rumors.
It does seem the bid by BP was made, and if it's rejected, there are several other suitors like Bunge (NYSE:BG) and Noble (NYSE:NBL), among others, who Cerradinho could seek as a minority shareholder, which admittedly is their goal at this time.
Cerradinho said, "The company is analyzing several options and almost got to a decision, but hasn't concluded anything yet. We'll likely
have a decision by December."
BP has reportedly offered $466 million to gain a 50 percent stake in the company.
According to the O Estado de S.Paulo newspaper, talks have been going on for several months, and the board of Cerradinho is expected to give an answer one way or the other soon.
Neither company would comment on what the identified as market rumors.
It does seem the bid by BP was made, and if it's rejected, there are several other suitors like Bunge (NYSE:BG) and Noble (NYSE:NBL), among others, who Cerradinho could seek as a minority shareholder, which admittedly is their goal at this time.
Cerradinho said, "The company is analyzing several options and almost got to a decision, but hasn't concluded anything yet. We'll likely
have a decision by December."
Monday, October 18, 2010
Exxon Mobil (NYSE:XOM) Blasts Ethanol and E15 Decision
Exxon Mobil’s vice president of government and public affairs, Ken Cohen, said on their website that the decision by the U.S. Environmental Protection Agency to approve the 15 percent ethanol blend, or E15, was a “a rush to
judgment.”
Ethanol at the E10 level has been devastating and costly to owners and users of small engine equipment like garden tillers, lawn mowers, boat motors, tools, motorcycles, and all types of other small engine equipment people and businesses used.
What a disaster when this completely irresponsible decision devastates the property of Americans even more and causes them even more hardship.
Who knows the usual unintended consequences that will come with the misguided decision for owners of cars as well. Only vehicles made in 2007 or later should use the blend, although we'll quickly find out if it damages the cars.
The incredibly naive and ignorant federal Renewable Fuel Standards would force ethanol to be used at a rate of 36 billion gallans by 2022. That could result in the blend being raised to as high as 25 percent. What a disaster that would be.
There is also the huge inputs involving corn-based ethanol, which is extremely hard on the environment.
Concerning ethanol use in general, Cohen concluded:
“Beyond the specific E15 issue, many observers have questioned government support of ethanol in general. They have seen that the federal government has provided substantial subsidies for ethanol fuel for more than 20 years, yet economic studies have concluded that the ethanol market could collapse without federal subsidies. Why? Observers and economists point to the fact that there are virtually no economies of scale associated with ethanol processing; production costs have not declined significantly over time; and ethanol production is a very mature technology.”
The bottom line though is the consumer has made the decision they don't want this junk. And maybe with a change in Washington these laws can be eliminated and the market decide what type of fuel we're willing to use.
Ethanol is a disaster and it should be dropped from being a part of our fuel strategy.
judgment.”
Ethanol at the E10 level has been devastating and costly to owners and users of small engine equipment like garden tillers, lawn mowers, boat motors, tools, motorcycles, and all types of other small engine equipment people and businesses used.
What a disaster when this completely irresponsible decision devastates the property of Americans even more and causes them even more hardship.
Who knows the usual unintended consequences that will come with the misguided decision for owners of cars as well. Only vehicles made in 2007 or later should use the blend, although we'll quickly find out if it damages the cars.
The incredibly naive and ignorant federal Renewable Fuel Standards would force ethanol to be used at a rate of 36 billion gallans by 2022. That could result in the blend being raised to as high as 25 percent. What a disaster that would be.
There is also the huge inputs involving corn-based ethanol, which is extremely hard on the environment.
Concerning ethanol use in general, Cohen concluded:
“Beyond the specific E15 issue, many observers have questioned government support of ethanol in general. They have seen that the federal government has provided substantial subsidies for ethanol fuel for more than 20 years, yet economic studies have concluded that the ethanol market could collapse without federal subsidies. Why? Observers and economists point to the fact that there are virtually no economies of scale associated with ethanol processing; production costs have not declined significantly over time; and ethanol production is a very mature technology.”
The bottom line though is the consumer has made the decision they don't want this junk. And maybe with a change in Washington these laws can be eliminated and the market decide what type of fuel we're willing to use.
Ethanol is a disaster and it should be dropped from being a part of our fuel strategy.
Saturday, July 3, 2010
States Want Opt-out Option on Ethanol
U.S. Senator Jim Inhofe, R-Oklahoma, will introduce legislation which would offer gas stations to decide whether or not they want to use gas without ethanol at the pump.
A draconian law will soon go into effect which will force everyone to offer gas with ethanol in it, even though many people don't want to put the stuff into their cars and equipment, because of the proven ethanol causes.
Some foolish and ignorant proponents of ethanol, for example, Terry Dietrich, President of American Farmers and Ranchers Insurance, say things like this, "We think it's high time that we quit fighting wars overseas and funding both sides. We've lost enough American soldiers."
This is so stupid as to not even be able to be taken seriously. In other words, all that oil in Afghanistan you mean? Is that why we need ethanol? Demagogues like this don't even attempt to use their brain when making their statements.
Some even pretend the proven higher costs of food coming from pushing ethanol isn't true either. That's an outright lie. Just ask the meat industry if that's what they have found out.
Just one way this happens is through the higher cost of feeding animals, which when we buy their meat, creates higher costs at the supermarket. How hard is that to understand.
Ethanol needs to be allowed to stand on its own, and the subsidies which make it survive need to be removed. Then we'll see if there's really a demand for it or not. I think we already know the answer to that.
A draconian law will soon go into effect which will force everyone to offer gas with ethanol in it, even though many people don't want to put the stuff into their cars and equipment, because of the proven ethanol causes.
Some foolish and ignorant proponents of ethanol, for example, Terry Dietrich, President of American Farmers and Ranchers Insurance, say things like this, "We think it's high time that we quit fighting wars overseas and funding both sides. We've lost enough American soldiers."
This is so stupid as to not even be able to be taken seriously. In other words, all that oil in Afghanistan you mean? Is that why we need ethanol? Demagogues like this don't even attempt to use their brain when making their statements.
Some even pretend the proven higher costs of food coming from pushing ethanol isn't true either. That's an outright lie. Just ask the meat industry if that's what they have found out.
Just one way this happens is through the higher cost of feeding animals, which when we buy their meat, creates higher costs at the supermarket. How hard is that to understand.
Ethanol needs to be allowed to stand on its own, and the subsidies which make it survive need to be removed. Then we'll see if there's really a demand for it or not. I think we already know the answer to that.
Saturday, April 10, 2010
Ethanol Plant Closing in Minnesota
Low ethanol prices continue to take a toll on the so-called industry, as an ethanol plant was closed in Buffalo Lake by Minnesota Energy.
This is completely based on price and margins,according to chairman of the board of the company, Randy Byro.
Byro said prices need to increase by at least 50 cents to 75 cents a gallon to even think of reopening the plant.
While not a huge plant, it does underscore the ethanol fiasco which was marketed as a savior to small communities across America, but has dashed hopes as the market for it remains small, and if not for taxpayer subsidies, would be a complete joke.
Let the free market determine whether ethanol is viable or not. If people want it they'll be willing to pay for it. Obviously people don't want it, and the program needs to be droppped along with the waste of taxpayers' dollars.
This is completely based on price and margins,according to chairman of the board of the company, Randy Byro.
Byro said prices need to increase by at least 50 cents to 75 cents a gallon to even think of reopening the plant.
While not a huge plant, it does underscore the ethanol fiasco which was marketed as a savior to small communities across America, but has dashed hopes as the market for it remains small, and if not for taxpayer subsidies, would be a complete joke.
Let the free market determine whether ethanol is viable or not. If people want it they'll be willing to pay for it. Obviously people don't want it, and the program needs to be droppped along with the waste of taxpayers' dollars.
Monday, February 2, 2009
Ethanol: How to Make Ethanol
While ethanol is a disaster, it's interesting to see the many people that look at it as a viable alternative energy and fuel, and search into how they can make ethanol on their own.
Regular ethanol has been extremely destructive to numerous small engine power equipment, and during the winter time we notice many of the snowmobiles, chainsaws and generators at the small engine repair shops as the alleged biofuel continues to destroy the parts and engines of the products, even though some proponents continue to pretend it's completely safe to use, while the equipment of ethanol users is destroyed, and in some cases becomes dangerous to use because of the potential consequences of getting stranded; as in the case of snowmobiles or motor boats.
Some even continue to claim the very expensive fuel and poor mileage (as far as it relates to vehicles) is inexpensive. But some studies have shown the price of gasoline would have to reach about $2.33 a gallon to be the equivalent of the high cost of ethanol.
So it can be understood why people that like to experiment and try things out would want to make their own ethanol for the purpose of accomplishing the task, it's hard to know why other than that someone would want to put it in any type of equipment they use.
Making ethanol is of course nothing new, as people have known how to make ethanol for a long time, using fermentation and the distillation of sugar and starch crops. Some of the obvious crops still used today to make ethanol are corn, cornstalks and sugar cane (in Brazil). Other crops used are potatoes, wheat and peelings from fruit and vegetables. Grass and wood chips or sawdust can be used as well, among many others.
It takes a lot of this stuff to even make one gallon of ethanol, as it takes about 10gallons of crops or other material to make a gallon of the fuel additive. So picture wanting about 10 gallons of the stuff. You'd have to have access to about 100 gallons of raw materials in order to make that much. It would take a ton of work just to gather that much together, even if someone was willing to give it to you to work with.
So what's the process on How to Make Ethanol?
To turn raw materials into ethanol, it requires five steps:
Conversion
Fermentation
Distillation
Filtration
Dehydration
Whatever material you decide to use, it has to be converted by the sugars being broken down in the process. That's either done manually or by adding an enzyme.
In the fermentation part of the process, you're at the creation of alcohol stage, and so add yeast in a similar way you would if you were making wine.
The next stage in How to Make Ethanol is to use a still for the purpose of separation of the alcohol from the rest of the liquid. This is called Distillation.
For the next two steps you filtrate the liquid in order to remove the impurities in the liquid as well as the excess water remaining.
Materials needed to make ethanol:
A lidded plastic bucket or barrel
Yeast
Fruit
Hydrometer
Because the liquid will start to ferment once the fruit or raw material is broken down, you should only fill it to about one-third full, or you'll end up with a messy overflow of the ethanol.
When using yeast, don't think in terms of the type you'd use for making bread. Rather, to make ethanol, us the type you would acquire from a store with supplies to make wine. That type of yeast is tolerant to ethanol.
Once you add the yeast to the mixture, use the hydrometer to measure the sugar content. Once you have that figure, cover up the barrel.
Simply let it sit for several days while checking the sugar content once a day. What you're looking for is the sugar content in the mixture to gradually decrease until there's zero sugar left in the ethanol. That will usually take about 10 days.
When that part of the process is completed, the mixture should be immediately distilled, or you risk damaging whatever equipment you might put the fuel into.
This could be an enjoyable experiment to have fun with, but doing this allows you to see the number of things involved with making ethanol, the high amount of inputs, and how a lot can go wrong with it while it's being made, which could damage your equipment.
In the end, it can be fun learning how to make ethanol, but I sure wouldn't really want to use it other than in something old to learn the damage it can cause.
Regular ethanol has been extremely destructive to numerous small engine power equipment, and during the winter time we notice many of the snowmobiles, chainsaws and generators at the small engine repair shops as the alleged biofuel continues to destroy the parts and engines of the products, even though some proponents continue to pretend it's completely safe to use, while the equipment of ethanol users is destroyed, and in some cases becomes dangerous to use because of the potential consequences of getting stranded; as in the case of snowmobiles or motor boats.
Some even continue to claim the very expensive fuel and poor mileage (as far as it relates to vehicles) is inexpensive. But some studies have shown the price of gasoline would have to reach about $2.33 a gallon to be the equivalent of the high cost of ethanol.
So it can be understood why people that like to experiment and try things out would want to make their own ethanol for the purpose of accomplishing the task, it's hard to know why other than that someone would want to put it in any type of equipment they use.
Making ethanol is of course nothing new, as people have known how to make ethanol for a long time, using fermentation and the distillation of sugar and starch crops. Some of the obvious crops still used today to make ethanol are corn, cornstalks and sugar cane (in Brazil). Other crops used are potatoes, wheat and peelings from fruit and vegetables. Grass and wood chips or sawdust can be used as well, among many others.
It takes a lot of this stuff to even make one gallon of ethanol, as it takes about 10gallons of crops or other material to make a gallon of the fuel additive. So picture wanting about 10 gallons of the stuff. You'd have to have access to about 100 gallons of raw materials in order to make that much. It would take a ton of work just to gather that much together, even if someone was willing to give it to you to work with.
So what's the process on How to Make Ethanol?
To turn raw materials into ethanol, it requires five steps:
Conversion
Fermentation
Distillation
Filtration
Dehydration
Whatever material you decide to use, it has to be converted by the sugars being broken down in the process. That's either done manually or by adding an enzyme.
In the fermentation part of the process, you're at the creation of alcohol stage, and so add yeast in a similar way you would if you were making wine.
The next stage in How to Make Ethanol is to use a still for the purpose of separation of the alcohol from the rest of the liquid. This is called Distillation.
For the next two steps you filtrate the liquid in order to remove the impurities in the liquid as well as the excess water remaining.
Materials needed to make ethanol:
A lidded plastic bucket or barrel
Yeast
Fruit
Hydrometer
Because the liquid will start to ferment once the fruit or raw material is broken down, you should only fill it to about one-third full, or you'll end up with a messy overflow of the ethanol.
When using yeast, don't think in terms of the type you'd use for making bread. Rather, to make ethanol, us the type you would acquire from a store with supplies to make wine. That type of yeast is tolerant to ethanol.
Once you add the yeast to the mixture, use the hydrometer to measure the sugar content. Once you have that figure, cover up the barrel.
Simply let it sit for several days while checking the sugar content once a day. What you're looking for is the sugar content in the mixture to gradually decrease until there's zero sugar left in the ethanol. That will usually take about 10 days.
When that part of the process is completed, the mixture should be immediately distilled, or you risk damaging whatever equipment you might put the fuel into.
This could be an enjoyable experiment to have fun with, but doing this allows you to see the number of things involved with making ethanol, the high amount of inputs, and how a lot can go wrong with it while it's being made, which could damage your equipment.
In the end, it can be fun learning how to make ethanol, but I sure wouldn't really want to use it other than in something old to learn the damage it can cause.
Sunday, February 1, 2009
Ethanol | Greater Ohio Ethanol
Greater Ohio Ethanol - Another Reason to Abandon the Ethanol Debacle
The failure of the ethanol initiative is again unveiled as the Greater Ohio Ethanol company can't find a buyer that could justify the price and debt the company is attempting to command and owes.
Costs for the ethanol plant were an astronomical $150 million, without anything but a pathetic government mandate to force ethanol as a biofuel on the public. Even with taxpayer subsidies the biofuel can't even come close to producing a profit.
Unless Greater Ohio Ethanol is basically given away, it's not even worth the trouble. Even then it's doubtful it would be worth the headache of an inevitable shutdown. If someone takes this responsibility on, they deserve what they get, as it's been a losing proposition from the beginning.
While the ethanol plants' creditors are obviously trying to patch up as much damage to their investment as they can, they have absolutely no foundation to stand on, the reason deal after deal has been turned down.
So far two companies have made bids for Greater Ohio Ethanol, but they've both been rejected. Both companies have stakes in Greater Ohio Ethanol, as Paladin Capital Group of Washington, D.C. provided the equity to build the Lima plant, and NextGen Ethanol owns two of the ethanol plants currently operating.
Bills continue to mount in spite of the failed bids, and it'll keep getting worse the longer the bankruptcy proceedings last, as they're costly as well. There are still operational costs at the ethanol plant, along with construction bills that have yet to be paid. What a mess the misguided ethanol industry has become, and Greater Ohio Ethanol is a cover story to emphasize the debacle.
With creditors anxiously looking on, they've filed a motion to convert the Chapter 11 bankruptcy to a Chapter 7, as those unsecured debtors are in a secondary position, and probably will receive nothing under the Chapter 11. At this time a sale of the company would only benefit the senior, secured lenders. Of course the unsecured debtors knew this when they signed on, so it's nothing but their own fault for taking the risk.
Lima, Ohio is finding out the hard way, along with much of the midwest, that ethanol as a business is basically fools gold, and it's going to remain that way. The Greater Ohio Ethanol company, along with the numerous other ethanol companies, is a narrative showing ethanol as a biofuel needs to be abandoned as a viable alternative. The numbers just don't add up, and it's a waste of billions in taxpayer dollars.
The failure of the ethanol initiative is again unveiled as the Greater Ohio Ethanol company can't find a buyer that could justify the price and debt the company is attempting to command and owes.
Costs for the ethanol plant were an astronomical $150 million, without anything but a pathetic government mandate to force ethanol as a biofuel on the public. Even with taxpayer subsidies the biofuel can't even come close to producing a profit.
Unless Greater Ohio Ethanol is basically given away, it's not even worth the trouble. Even then it's doubtful it would be worth the headache of an inevitable shutdown. If someone takes this responsibility on, they deserve what they get, as it's been a losing proposition from the beginning.
While the ethanol plants' creditors are obviously trying to patch up as much damage to their investment as they can, they have absolutely no foundation to stand on, the reason deal after deal has been turned down.
So far two companies have made bids for Greater Ohio Ethanol, but they've both been rejected. Both companies have stakes in Greater Ohio Ethanol, as Paladin Capital Group of Washington, D.C. provided the equity to build the Lima plant, and NextGen Ethanol owns two of the ethanol plants currently operating.
Bills continue to mount in spite of the failed bids, and it'll keep getting worse the longer the bankruptcy proceedings last, as they're costly as well. There are still operational costs at the ethanol plant, along with construction bills that have yet to be paid. What a mess the misguided ethanol industry has become, and Greater Ohio Ethanol is a cover story to emphasize the debacle.
With creditors anxiously looking on, they've filed a motion to convert the Chapter 11 bankruptcy to a Chapter 7, as those unsecured debtors are in a secondary position, and probably will receive nothing under the Chapter 11. At this time a sale of the company would only benefit the senior, secured lenders. Of course the unsecured debtors knew this when they signed on, so it's nothing but their own fault for taking the risk.
Lima, Ohio is finding out the hard way, along with much of the midwest, that ethanol as a business is basically fools gold, and it's going to remain that way. The Greater Ohio Ethanol company, along with the numerous other ethanol companies, is a narrative showing ethanol as a biofuel needs to be abandoned as a viable alternative. The numbers just don't add up, and it's a waste of billions in taxpayer dollars.
Sunday, January 25, 2009
Corn: Is the Ethanol Party Over?
While some commodities in the precious metals sector will enjoy a banner year in 2009, grains, and specifically corn, won't be doing to well, as least in the first half the year, as corn futures drop below $4 a bushel.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Wednesday, January 21, 2009
Ethanol in Chainsaws: Disaster Waiting to Happen
Ethanol destroying chainsaws, even after being cleaned up
It seems that nothing runs good with ethanol in it, including chainsaws.
Many so-called experts have supposedly cleared automobiles for use with ethynol, but a large number of consumers still say they are having troubles with them. Snowmobile owners have been up in arms in the northern states over the breaking down of their snowmobiles from the use of ethanol in their engines.
When you research what some of the real experts - the mechanics - are saying, they start telling you the techniques you'd need to employ to take avoid the ethanol problems, or hopefully prevent them.
That's the problem, you just about have to be an expert, or at least very familiar with engines (which most people aren't), to even have a chance at preventing damage to or even salvaging your power equipment.
From hoses to valves, and other parts of engines, you have to take certain precautions to keep them from damaging your chainsaws. The amount of time, and in some cases with additives - extra price, it quickly becomes a much heavier burden to even use your small engine tools.
An increasing number of people are complaining about the abnormal number of problems with their chainsaws, ethanol in snowmobiles, generators, among a number of other small engine machinery used in the summer like lawnmowers, weedeaters and tillers.
Small engine mechanics confirm this saying their shops are as full as they've ever been with machinery that has broken down.
Some mechanics are also getting a little concerned about taking in the ethanol-damaged equipment, as many times they clean it, as with chainsaws, and have to bring them right back from using them in the field because ethanol leaves behind a hidden residue that can't be spotted with the naked eye.
A recent story about someone bringing a chainsaw in to be fixed, had the mechanic completely cleaning up the carburetor and the daiphrams, putting in fuel and air filters, and it started up in the shop ok. The owner took it out to use it, and after running for five minutes, had to bring it back to be looked at.
Ethanol can clog up just about everything, as in the real life example above, you can clean everything you can think up, and it still continues to fall apart. When the owner brought back the chainsaw after it broke down again, the next time around the lines would have to be checked to see if they were corroded.
Who wants to go through that with every small engine piece of machinery we have? It's ridiculous.
Another factor for the small engine industry is the concerns over safety and liability issues, as not only is there the equipment breaking down problem, but people could be hurt directly or indirectly from the failure of the products they manufacture.
In conclusion, valves can clog up, little metal parts rust, carburetors destroyes, as well as other small, but needed components.
Draining the ethanol based gas from the tanks isn't enough either, as I mentioned earlier, because of the residue - which is the component in ethanol that does the damage - will remain in the engine and chainsaw parts unseen.
While it doesn't work real well, some people have been helped slightly by adding Stabil to their non-2-cycle engine equipment. They unwittingly think that taking the ethanol mixed gas out that it will prevent the damage, but they are wrong.
Should you use ethanol in your chainsaws? Not at all if you can help it. There's nothing we can do to keep the engines and parts from gumming up and eventually failing.
Even the mechanics admit after cleaning it up there's not much they can do to prevent our chainsaws from being damaged again and again. We need to drop the ethanol hoax now. Think of the problems about to be released if the pressure to increase the mixture goes through!
It seems that nothing runs good with ethanol in it, including chainsaws.
Many so-called experts have supposedly cleared automobiles for use with ethynol, but a large number of consumers still say they are having troubles with them. Snowmobile owners have been up in arms in the northern states over the breaking down of their snowmobiles from the use of ethanol in their engines.
When you research what some of the real experts - the mechanics - are saying, they start telling you the techniques you'd need to employ to take avoid the ethanol problems, or hopefully prevent them.
That's the problem, you just about have to be an expert, or at least very familiar with engines (which most people aren't), to even have a chance at preventing damage to or even salvaging your power equipment.
From hoses to valves, and other parts of engines, you have to take certain precautions to keep them from damaging your chainsaws. The amount of time, and in some cases with additives - extra price, it quickly becomes a much heavier burden to even use your small engine tools.
An increasing number of people are complaining about the abnormal number of problems with their chainsaws, ethanol in snowmobiles, generators, among a number of other small engine machinery used in the summer like lawnmowers, weedeaters and tillers.
Small engine mechanics confirm this saying their shops are as full as they've ever been with machinery that has broken down.
Some mechanics are also getting a little concerned about taking in the ethanol-damaged equipment, as many times they clean it, as with chainsaws, and have to bring them right back from using them in the field because ethanol leaves behind a hidden residue that can't be spotted with the naked eye.
A recent story about someone bringing a chainsaw in to be fixed, had the mechanic completely cleaning up the carburetor and the daiphrams, putting in fuel and air filters, and it started up in the shop ok. The owner took it out to use it, and after running for five minutes, had to bring it back to be looked at.
Ethanol can clog up just about everything, as in the real life example above, you can clean everything you can think up, and it still continues to fall apart. When the owner brought back the chainsaw after it broke down again, the next time around the lines would have to be checked to see if they were corroded.
Who wants to go through that with every small engine piece of machinery we have? It's ridiculous.
Another factor for the small engine industry is the concerns over safety and liability issues, as not only is there the equipment breaking down problem, but people could be hurt directly or indirectly from the failure of the products they manufacture.
In conclusion, valves can clog up, little metal parts rust, carburetors destroyes, as well as other small, but needed components.
Draining the ethanol based gas from the tanks isn't enough either, as I mentioned earlier, because of the residue - which is the component in ethanol that does the damage - will remain in the engine and chainsaw parts unseen.
While it doesn't work real well, some people have been helped slightly by adding Stabil to their non-2-cycle engine equipment. They unwittingly think that taking the ethanol mixed gas out that it will prevent the damage, but they are wrong.
Should you use ethanol in your chainsaws? Not at all if you can help it. There's nothing we can do to keep the engines and parts from gumming up and eventually failing.
Even the mechanics admit after cleaning it up there's not much they can do to prevent our chainsaws from being damaged again and again. We need to drop the ethanol hoax now. Think of the problems about to be released if the pressure to increase the mixture goes through!
Wednesday, January 14, 2009
Another Waste of Taxpayers Money as Northeast Biofuels Files for Chapter 11 Bankruptcy
Only a mere five months after becoming operational, Northeast Biofuels LP has already sought out bankuptcy protection under Chapter 11.
Businesses filing under Chapter 11 restructure their finances with the goal of starting operations up again.
The plant cost about $200 million to build, as another huge waste of taxpayers' money is revealed in the ongoing ethanol debacle.
Go here for bankruptcy petition, which was filed in U.S. Bankruptcy Court in Syracuse
Thursday, December 11, 2008
Many Reasons to Drop the Ethanol Debacle
"New" ethanol to face crunch time under a Chu DOE
"Steven Chu, Obama's pick for the head of the Department of Energy, is a steadfast supporter of next-generation biofuels such as cellulosic ethanol, expected to be made from the tough woody bits of crops like grasses and fast growing trees as well as plant and timber waste.
"But next-generation biofuels are no quick fix. They are more expensive than gasoline, a problem that was tricky when oil hit $147 a barrel over the summer, but even more difficult now as it trades under $50 a barrel."
Why the Ethanol Mandate is a Joke and a Crime
Shawn McCambridge, senior grains analyst for Prudential-Bache, said capacity could dip below the mandate because the economy will make politicians unwilling to enforce penalties or push for more ethanol at the expense of consumers.
NSW Farmers question lift in mandatory ethanol targets
The NSW Farmers’ Association supports the availability of ethanol blended petrol at service stations throughout NSW, but it believes that this should be determined by market forces, not Government intervention by mandating the percentage of ethanol in petrol.
The Real Future of Ethanol
A state fund that helps North Dakota ethanol plants is expected to run out of money this month.
Ethanol isn't the Answer
Going to ethanol was a great decision for the Brazilians – they got off of foreign oil and, as luck would have it, created a greener fuel which only became important recently. But that doesn’t mean that we can do the same. It’s good that we began to look at other countries to see what they do well, but we need to understand differences between countries, too. Here, we should have known that ethanol wasn’t right for us. If we want energy independence and a greener fuel, we need to look at what else America has to offer.
Ethanol the Killer
Governments worldwide are tempering their drive for biofuel use after a surge in production increased land clearance in Latin America and Asia and reduced food production in some regions. In July, the Organization for Economic Cooperation and Development estimated wheat and corn prices may rise as much as 7 percent in the next decade because of greater U.S. and European production of alternative fuels.
Ethanol is Worst Biofuel Option
Ethanol-based biofuels will irreversibly damage human health, wildlife, water supply and land use than current fossil fuels ... warns an expert.
"Steven Chu, Obama's pick for the head of the Department of Energy, is a steadfast supporter of next-generation biofuels such as cellulosic ethanol, expected to be made from the tough woody bits of crops like grasses and fast growing trees as well as plant and timber waste.
"But next-generation biofuels are no quick fix. They are more expensive than gasoline, a problem that was tricky when oil hit $147 a barrel over the summer, but even more difficult now as it trades under $50 a barrel."
Why the Ethanol Mandate is a Joke and a Crime
Shawn McCambridge, senior grains analyst for Prudential-Bache, said capacity could dip below the mandate because the economy will make politicians unwilling to enforce penalties or push for more ethanol at the expense of consumers.
NSW Farmers question lift in mandatory ethanol targets
The NSW Farmers’ Association supports the availability of ethanol blended petrol at service stations throughout NSW, but it believes that this should be determined by market forces, not Government intervention by mandating the percentage of ethanol in petrol.
The Real Future of Ethanol
A state fund that helps North Dakota ethanol plants is expected to run out of money this month.
Ethanol isn't the Answer
Going to ethanol was a great decision for the Brazilians – they got off of foreign oil and, as luck would have it, created a greener fuel which only became important recently. But that doesn’t mean that we can do the same. It’s good that we began to look at other countries to see what they do well, but we need to understand differences between countries, too. Here, we should have known that ethanol wasn’t right for us. If we want energy independence and a greener fuel, we need to look at what else America has to offer.
Ethanol the Killer
Governments worldwide are tempering their drive for biofuel use after a surge in production increased land clearance in Latin America and Asia and reduced food production in some regions. In July, the Organization for Economic Cooperation and Development estimated wheat and corn prices may rise as much as 7 percent in the next decade because of greater U.S. and European production of alternative fuels.
Ethanol is Worst Biofuel Option
Ethanol-based biofuels will irreversibly damage human health, wildlife, water supply and land use than current fossil fuels ... warns an expert.
Friday, November 21, 2008
VeraSun Energy Requests Permission to Void Corn Contracts
Another reason to abandon the ethanol fiasco!
VeraSun energy has requested permission from a bankruptcy court in Delaware to void contracts with farmers if they give them a 10-day notice.
VeraSun energy has requested permission from a bankruptcy court in Delaware to void contracts with farmers if they give them a 10-day notice.
VeraSun Energy Requests Permission to Void Corn Contracts with 10-day Notice
Farmers are up in arms over the request by VeraSun Energy for a Delaware judge to give them permission to void corn contracts with a notice of 10 days.
The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.
Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.
I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.
With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.
On the 2nd of December the request by VeraSun will be reviewed at a hearing.
The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.
For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.
The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.
Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.
I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.
With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.
On the 2nd of December the request by VeraSun will be reviewed at a hearing.
The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.
For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.
Wednesday, October 8, 2008
Agri-Ethanol Products Company Founders Indicted for Bribery, Extortion
The founders of Agri-Ethanol Products, Jim Perry and Dave Brady, have been indicted by a grand jury on a number charges.
Charges include conspiring to commit extortion and bribery, aiding and abetting extortion, and aiding and abetting bribery. Both men have also been charged with perjury in relationship to the case.
Evidently the two wanted to speed up the process of attaining permits from the N.C. Department of Environment and Natural Resources, and so allegedly offered a DENR employee $196,000 in exchange for moving things through quicker.
Boyce Allen Hudson, the DENR worker pleaded guilty in early 2008 to extortion and money laundering. He is currently serving a 40 month prison sentence.
The failed Agri-Ethanol Products company had original plans to build up to 20 ethanol plants along the East coast.
Charges include conspiring to commit extortion and bribery, aiding and abetting extortion, and aiding and abetting bribery. Both men have also been charged with perjury in relationship to the case.
Evidently the two wanted to speed up the process of attaining permits from the N.C. Department of Environment and Natural Resources, and so allegedly offered a DENR employee $196,000 in exchange for moving things through quicker.
Boyce Allen Hudson, the DENR worker pleaded guilty in early 2008 to extortion and money laundering. He is currently serving a 40 month prison sentence.
The failed Agri-Ethanol Products company had original plans to build up to 20 ethanol plants along the East coast.
Thursday, August 21, 2008
More Reasons to Free us from the Ethanol Devil
The growing number of reasons to drop ethanol and its government subsidies continues to reveal the utter stupidity of pursuing ethanol as a significant source of renewable fuel.
As people continue to deconstruct the arguments made in favor of ethanol, it's getting clearer and clearer it's an initiative pushed by special interest groups who created fear of foreign energy dependency at the cost of sanity.
While we obviously need to look at real alternatives in the years ahead, we are far from being in some type of serious trouble, as the billions of barrels of oil under American soil, as well as under its oceans attest to.
Environmentalists and opportunist have created this false problem by panicking people into believing we're on the cusp of a worldwide disaster, when in reality there's enough oil to last for decades ... if not longer.
Recent discoveries in Brazilian waters, along with the huge oil deposits in the Canadian oil sands are also proof of the need to slow down and take into account all the effects and unintended consequences that always accompany decisions that are motivated by fear and political expediency.
As people continue to deconstruct the arguments made in favor of ethanol, it's getting clearer and clearer it's an initiative pushed by special interest groups who created fear of foreign energy dependency at the cost of sanity.
While we obviously need to look at real alternatives in the years ahead, we are far from being in some type of serious trouble, as the billions of barrels of oil under American soil, as well as under its oceans attest to.
Environmentalists and opportunist have created this false problem by panicking people into believing we're on the cusp of a worldwide disaster, when in reality there's enough oil to last for decades ... if not longer.
Recent discoveries in Brazilian waters, along with the huge oil deposits in the Canadian oil sands are also proof of the need to slow down and take into account all the effects and unintended consequences that always accompany decisions that are motivated by fear and political expediency.
Wednesday, August 20, 2008
U.S. Ethanol Subsidies to Keep Food Prices High Everywhere
The outrageous subsidy for corn-based ethanol in the U.S. continues to batter consumers across the world, as even though other commodities have been dropping, food prices are expected to stay the same, and in a number of cases - rise.
For retail food prices in the U.S., they have been growing at a 6 percent rate this year, in contrast to the regular inflation rate at about 2 percent.
With irresponsible politicians and ongoing ignoring of stories like this by the mainstream media, the cost of food items related to corn price increases like chicken, beef and pork are projected to continue rising for the immediate future. The majority of that related to the misguided and terrible idea of subsidizing big corporate corn farmers so it can look like the government is doing something related to energy.
The disaster will continue until the story is continually reported on and the reality of the consequences understood by the public.
The next meat to be affected will be chicken, which so far producers haven't passed on the higher feed costs to consumers, but Bill Roenigk, senior vice president of the National Chicken Council said that's all about to change.
"From a consumer standpoint, more and more of these feed costs are going to be passed on and that means higher prices at the supermarket," said Roenigk.
All this because of the usual pressure from special interest groups with an agenda, as well as a government that continues to pass themselves off as the big daddy of the universe. Until this attitude is reined in, Americans and people around the world will continue to suffer from the continual rise in food prices.
Just like we need to drill for the billions of barrels of oil on American soil or it's coastlines, so we need to stop this outrageous subsidy that is helping no one but the huge corporate corn farmers in America, as well as some landowners cashing in on rising farmland prices.
For retail food prices in the U.S., they have been growing at a 6 percent rate this year, in contrast to the regular inflation rate at about 2 percent.
With irresponsible politicians and ongoing ignoring of stories like this by the mainstream media, the cost of food items related to corn price increases like chicken, beef and pork are projected to continue rising for the immediate future. The majority of that related to the misguided and terrible idea of subsidizing big corporate corn farmers so it can look like the government is doing something related to energy.
The disaster will continue until the story is continually reported on and the reality of the consequences understood by the public.
The next meat to be affected will be chicken, which so far producers haven't passed on the higher feed costs to consumers, but Bill Roenigk, senior vice president of the National Chicken Council said that's all about to change.
"From a consumer standpoint, more and more of these feed costs are going to be passed on and that means higher prices at the supermarket," said Roenigk.
All this because of the usual pressure from special interest groups with an agenda, as well as a government that continues to pass themselves off as the big daddy of the universe. Until this attitude is reined in, Americans and people around the world will continue to suffer from the continual rise in food prices.
Just like we need to drill for the billions of barrels of oil on American soil or it's coastlines, so we need to stop this outrageous subsidy that is helping no one but the huge corporate corn farmers in America, as well as some landowners cashing in on rising farmland prices.
Monday, August 11, 2008
Happy Corn Subsidy Pacific Ethanol: Company Gets Clobbered with High Corn Prices
Talk about a self-inflicted wound! In a second-quarter report for Pacific Ethanol Inc. (Nasdaq:PEIX), the company said it lost to common stockholders of $10.5 million, or 23 cents a share. That's almost double the 12 cents a share loss analysts were looking for.
Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.
Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.
Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.
Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.
For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.
The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.
Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.
Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.
Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.
Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.
For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.
The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.
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