« Ethanol Blend Petrol Soon To Be Law | Home | Ethanol Industry Group Hires Lobbyist »
Bankers Differ On Ethanol Profitability
By Mr Ethanol | June 21, 2007
Two banks offer mixed opinions on the viability of investments in the corn-based fuel.
CNNMoney:
Two big investment banks sent mixed signals about the profitability of ethanol Wednesday, with one citing potential for solid demand growth and easing corn prices, but the other less convinced.
Daniel More, a managing director at Morgan Stanley said the corn-based fuel is currently blended with gasoline. On average, gasoline contains 5 percent ethanol.
More said despite challenges facing the industry, the ethanol content in gasoline could be raised to 10 percent, and even as high as 15 to 20 percent in some states.
Senate energy bill reaches big
“We think there will be plenty of demand for the product,” said More, speaking at a finance conference hosted in New York by the American Council on Renewable Energy.
More also said additional acres of corn will be planted in the coming years, and that each acre will yield more corn, which could push corn prices down from their current highs of over $4 a bushel to around $3.
“Farmers know what they are doing,” he said.
As far as cellulosic ethanol - a nascent technology that makes ethanol from any plant matter, not just food crops - More said there was no reason current corn-based producers couldn’t utilize existing infrastructure and get in on the cellulosic game.
Also read: Google pushes 100-mpg car.
Topics: Ethanol, Investing, News, Stock Market |
Related Posts
- Tracking Ethanol Profitability
- New Technology Fuels Ethanol Production Plant
- Enough Infrastructure For Ethanol?
- Ethanol Industry In Sunset? Not So Fast
- Japanese Firm To Produce Ethanol From Tropical Sago Palm
- Campaigns Clash Over Ethanol
- Different Roads To Eco-Friendly Vehicles
- Local Investors Prop Up Cooling Ethanol
- Biofuel Advocates Want To Loosen Rules For Farm Credit
- Ethanol At Turning Point
New Way Of Making Easy Money Online
June 21st, 2007 at 9:43 am
Corn-based ethanol has been a great tool for kick-starting the move away from petroleum-based fuels. But corn doesn’t capture enough of the light spectrum to be the long-term, bio-fuel winner. In terms of BTU/acre/year production, plant-based oils instead of sugars/starches will be the way to go.
Unfortunately, it’ll take a decade or two to migrate our transportation infrastructure from spark-ignition ICE’s to diesels.
July 24th, 2007 at 2:44 pm
Would like to be in e-mail touch with Mr. Ethanol regarding ethanol branding: the missing link.
Thank you,
Stan@pickcotton.com
Rancho Mirage, CA
760.328.1323