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Oct 24
2007

What is the cost to implement Biofuel initiatives through US mandates?

Posted by Administrator in EnergybiofuelsBiodieselBiobike

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Industry watchers, like Global Subsidies Initiative (GSI) have expressed concern over producers' ability to meet federal calls for increased Biofuels production by 2017.

 

The U.S. mandate for 35 billion gallons of Biofuels production by that year would require production far in excess of today's volumes, roughly 6 billion gallons of corn-based ethanol and 1 billiongallons of biodiesel annually. While mandates can create a bit more certainty for investors, there appears to be a transfer of risk to sectors of the economy.

 

There are opinions throughout the world that governments have plans for Biofuel support policies, but should resist industry pressure to mandate Biofuel production or consumption. The assertion is that governments should keep options open, including the option of terminating support for the industry without incurring large adjustment costs.

 

The whole greenhouse effect aside, knowing that there are zealots on both side, that can quote thousands of studies that contradict the others points of view, I pose the questions. Should we clean up our environment? Yes. Should we be good steward of our planet and insure that our children's, children, have a clean non-polluted future ahead of them? Yes.

 

So what can we do? When I was growing up, and would hike or bike in the camp grounds across the US, I often saw signs said "Pack out what you packed in, leave nothing but foot prints, and take nothing but memories.

 

The point is, if every generation from this point forward cleans up what we have messed up, and look towards providing great memories to our future heirs, only then can we let the let the free market address the need for alternative energy sources.

Will our own behavior allow for each of us to take personal responsibility for what we taint, or destroy, not always? Then laws, rules, and other forms of discipline will dissuade us from continuing down the same path.

 

A case in point, several cities have adopted a zero tolerance stance where the Jay-Walking or not cleaning up after you pet cost a lot of money with regards to time, effort, and expense of correcting the violation. Other more serious crimes drop, due to the amount of effort being placed on the lesser offense. A great deterrent...

 

So let the Free Market address the way to supply our energy.

 

Biofuel creates a lot of impassioned innovators, that take the refuse of society, and turns that into a viable business opportunity, such as one of clients, Downstream Environmental.

 

Downstream Environmental has developed a process whereby they take the solid fats, oils, and grease or FOGs from our restaurants, fast food, recycled vegetable oils and animal fats as well as other oils and fats historically make their way down to Galveston Bay, south of Houston, Texas, without challenge. That is until recently. In May, 2007, the City of Houston passed a City FOG Ordinance that is one of the toughest in the nation, requiring permits, and minimum maintenance standards for introducing pollutants into our water system.

 

Through Downstream Environmental, the FOGs are placed in a centrifuge, through a patent pending process, where the solids (FOG) and waste water are separated. The waste water is treated, then introduced back into our water system, cleaner than the current water, and the FOGs are blended with transmission oil to produce a biodiesel that can be used for boilers and other engines that burn at a lower viscosity.

 

The rise of biodiesel has given diesel engine operators the additional advantage of being able to make their own fuel. It's not only environmentally friendly and sustainable; it's also a far better engine cleaning solvent than regular diesel.

 

Another example of innovation is in the area of using these types of Biofuels to promote an enhanced environment, through the use of bio-technology, is the development, of the 1st BioBike, a biodiesel powered motorbike, which was ridden in the 2007 Panasonic World Solar Challenge in October.

 

The BioBike was a project headed up by Project Leader, Heidi McNamara, from the University of Adelaide in South Australia. Heidi points out, "in areas where motorcycles are used as essential transport rather than high-speed toys, these machines start to look far more practical - particularly on farms and in military applications where diesel is used to run pretty much every other vehicle and engine."

 

The BioBike project team designed and built the bike as their year-end Mechanical Engineering project. The BioBike is Australian Design Rule compliant, which means that the BioBike has been registered for road use.

 

Even though, U.S. mandates 35 billion gallons of Biofuels production by 2017, innovators like Downstream Environment, and the next generation like Heidi McNamara, from the University of Adelaide in South Australia are proving that Free Trade can work. Am I wrong?



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