Dear Murdoch,
I think the subsidy the controlling factor
in the failure to introduce E-85 across the
country.
I believe that the subsidy to the blender
is 5.8 cents a gallon of finished product here
in the U.S.A.
So, the E-10 has, in effect, a subsidy of 58
cents a gallon of ethanol.
The E-85 has, in effect, a subsidy of 6.8 cents
a gallon of ethanol. Therefore, this blend is more
expensive at the pump.
Please correct me if I am wrong about who gets
paid how much by the federal government.
Regards,
Wendell
murdoch wrote:
> On Mon, 3 May 2004 23:35:47 -0700, you wrote:
>
> >You bring up a good point. It's hard to find "green" business people,
> since
> >there's a lot more money to be made elsewhere. I totally encourage
> your
> >efforts Tomas. My 2 cents on your question: maybe you could contact
> other
> >schools that use biodiesel in their fleets and see what they've done.
> I know
> >they are out there but not sure which ones they are.
> >
> >As for biodiesel business, I have noticed in the past few weeks that:
>
> >- there are a LOT of homebrewers and co-ops (yay!)
> >- there are NOT a lot of commercial biodiesel suppliers or retail
> biodiesel
> >stations. Even though in my (very non-MBA) head it seems like a
> pretty
> >simple and straightforward thing to do commercially (except maybe the
>
> >government hoops - ASTM standards and all that).
> >
> >I think co-ops and homebrews have their place but a biodiesel station
>
> >franchise, for example, that uses its profits to add more biodiesel
> >stations, sounds like a fantastic way to leverage capitalism to
> undermine
> >our dependence on foreign oil. What are the roadblocks preventing
> biodiesel
> >business from taking off? Lack of "green" MBAs? OPEC politics?
> Expensive
> >required EPA testing (I don't understand this issue at all)? Not
> enough
> >waste veg. oil to meet demand? Not enough diesel passenger cars out
> there?
> >Seems like if biodiesel were easily available along major commutes in
> major
> >cities, ordinary folks would gladly pay less per gallon for biodiesel
> and
> >feel good about themselves for saving the environment and preventing
> future
> >wars to boot.
>
> I think, in addition to the hypotheses you mention, we could question
> that the fuel distribution and retailing business is a different issue
>
> from the fuel production business. If you make a great amount of
> consistently high-quality biodiesel, where do you go with it? Should
> we expect the Exxon Station down the street to sell it, and a pump
> right next to dino diesel? Even if the station owner has his heart in
>
> the right place and wants to help us, I question whether there
> wouldn't be tremendously powerful forces at work preventing him from
> doing that. I haven't really investigated this at length, but I think
>
> this partly explains why it took so long to build E-85 distribution
> into the U.S. fuel distribution system. In short over-simplification:
>
> we're asking petro-sellers to sell the fuel of their competitor,
> without them having much incentive to do so. It has taken awhile to
> figure out how to get that to happen.
>
> >
> >I'll tell ya, I was born an engineer and the acronym "MBA" always
> made my
> >stomach turn, but I'd get an MBA in a heartbeat if I knew I could use
> it to
> >start a biodiesel business from which I could make a decent living.
>
> Girl Mark's group was recently started to discuss some small-scale
> biofuel business issues:
>
> http://groups.yahoo.com/group/local-b100-biz/
>
> I tend to agree on initial gut reactions to the "MBA" acronym.
>
>
> Biofuel at Journey to Forever:
> http://journeytoforever.org/biofuel.html
>
> Biofuels list archives:
> http://infoarchive.net/sgroup/biofuel/
>
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