Iowa State University researchers say corn ethanol not profitable after 2008
All the money rolling into the ethanol/corn industries may come to a screeching halt in a year or two, say researchers at Iowa State University. Inside Green Tech spoke to Bruce Babcock, economist and director of the Center for Agricultural and Rural Development at ISU, who say that, "We think the expected returns to an ethanol plant are zero or negative in 2008."
That's a dire prediction for an industry that's been building ethanol plant's like there's a greener tomorrow in each one. And it's certainly different than what people in the industry are telling AutoblogGreen. Babcock has his reasons, though: rising prices for corn feedstock, more ethanol on the market which leads to falling prices. This year there will be about six billion gallons of ethanol made in the U.S. "As we move beyond six, seven, eight billion gallons, we think the price will drop," Babcock said.
Of course, if E85-capable vehicles start to become more popular, then Americans will be able to use a bit more than six billion gallons a year. Of course, if cellulosic ethanol plants start to make the biofuel cheaply, then the profits for corn ethanol drop. So many possibilities (stay tuned for Sam's post in a little bit on how GM sees the ethanol future).
[Source: Inside Green Tech]
Reader Comments (Page 1 of 1)
Molari 11:55AM (6/10/2007)
It makes me wonder why Iowa State University are wasting thier time studying corn ethanol.
Countless other organisations dig in and refuse to advance to study the next new advancement in ethanol technology (Cellulosic Ethanol) + (Iogen Corporation: all plant matter is converted) which is the most efficient and economic, sustainable ethanol. But these orgs like to waste time and credibility and they rather stay focus on old inefficient corn or sugar cane ethanol.
Maybe someone from those orgs can explain why they are hellbent on studying old obsolete ethanol techniques or even keep talking about it.
Reply
Bill 1:08PM (6/10/2007)
I don't believe cellulosic ethanol has made it out off the laboratory bench yet, even to pilot-scale production.
Despite the tens of millions that have been spent on it.
Plenty of press releases, though.
Reply
Sam 6:38PM (12/03/2007)
Molari,
It's sad because you are misinformed bud. Read article http://www.larouchepub.com/other/2006/3319ethanol.html
Ethanol is not profitable and can't be since it takes more 3 times more energy to produce the same amount of gal of gas.
It's a waste because it doesn't yield less CO2. It's a longer tail pipe that gives out more pollution.
Electricity is one tenth of gas prices. So why aren't they listening to researchers at Iowa Univ. and stop putting billions into wasteful-no-future ethanol and instead put it into EV research?
Or better yet why not put money into water-fuel cell cars? Gas is more efficient than Ethanol.
Reply