Posted by: shoji | September 29, 2007

Ethanol, schmethanol (Part II)

Ethanol’s far from being an optimal vehicle fuel (here). Yet, this has not prevented vast investments into its production.

But the rush to ethanol may have led to a glut as the distribution systems for ethanol are not in place. (Distibution is one major problem with ethanol as a biofuel– ethanol absorbs moisture [i.e., water] and cannot be pumped through existing pipelines.)

Sudden Surplus Arises as Threat to Ethanol Boom – New York Times
“The end of the ethanol boom is possibly in sight and may already be here,” said Neil E. Harl, an economics professor emeritus at Iowa State University who lectures on ethanol and is a consultant for producers. “This is a dangerous time for people who are making investments.”


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