[TheForge] OT biodiesel

[Walter Mullett]

Like almost all new ideas, first editions are expensive and inefficient.
That is where government should step in and has somewhat.  I think looking
for alternative fuels is a must and biodiesel and ethanol are good ideas
that hold promise. 

You say that these plants do not make profits.  This site 
 http://www.sdcorn.org/sdcorn/ethanol/default.asp
says they are returning 33% return on investment.  I would love 33%.


-----Original Message-----
From: theforge-bounces at mailman.qth.net
[mailto:theforge-bounces at mailman.qth.net] On Behalf Of Ries Niemi
Sent: Wednesday, May 25, 2005 1:17 PM
To: John switzer; Sponsored by ABANA
Subject: Re: [TheForge] OT biodiesel


I gotta say, I am suspicious of this whole biodiesel thing- As far as french
fry oil, I cant imagine there is enough used cooking oil in the average town
to supply 1/100th of a percent of the current diesel fuel consumption.
So for a few guys who feel like spending lots of time instead of money,
french fry oil will work- but it sure isnt a solution to oil consumption.

And from what I have read, at current prices, it costs more to make
biodiesel from plant material like corn than it does to buy diesel fuel from
refineries.
There are only two reasons so many biodiesel refining plants are being
built- government subsidies, which means we all pay extra so some farmers
can burn more diesel to farm, and scams- it seems there is a company in
Minnesota that develops and builds biodiesel refining
plants-- using NONE of their own money- they go into a town, convince all
the local farmers to mortgage their farms and houses to become "investors"
in this big growth industry, then they pay themselves to build and manage
what are money losing businesses. Once a critical mass of farmers and locals
have their futures tied up in these plants, they start to lobby the state
government to REQUIRE biodiesel for many state vehicles, give it tax breaks,
etc.
There are currently something like 50 of these plants either built or under
construction in the midwest, and not a single one of them was built by big
business- kinda makes you think somebody knows something. 
Well, I heard Archer Daniels Midland did build one or two, but totally paid
for by government grants- none of their own money on the line.

If all the gas and oil was used up, then biodiesel would make sense as an
alternative, but right now, there is a lot of smoke and mirrors around this
one- its kind of like the 150mpg carburetors.

ries

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