Biofuel Dilemma

[jebatty]

If this has been covered, send me a link and never mind.

It seems that the most critical component of biofuels is transportation of the fuel. This is where oil and gas have gained such an advantage because of the huge volume that can be cheaply transported: from super tankers to pipelines, with only the final leg involving trucks (except for NG which is piped right to the user).

Biofuels in solid form carry a huge disadvantage because of the need to transport these by very expensive truck transportation, from the raw material source to the point of processing, and then to final destination, perhaps even with intermediate legs. Until alternative energy sources rise considerably in cost, it will not be feasible to use biofuels except within generally local markets due to transportation cost.

If there is truth in this, then biofuels will have their day when they are either liquified (like ethanol) or gassified and pipe-lined, at least to distribution points.

Since pipelines already exist, and I understand may with relative ease be switched from one product to another, and since pipelines are controlled by the big energy companies, who do you think has a lock on the future of biofuels? or can cash in on the govt subsidies, incentives and give-aways? or will insure that you and I pay high energy prices forever? or will continue to hold the world hostage?

The big energy companies have not been exactly environmentally friendly, so how do you think the environment is likely to come out as the big guys move in to supply a cheap energy addicted world?

All of my questions, of course, are rhetorical.

 

[jebatty]

Addendum -- the other dilemma is that enough of the biofuel sources are owned by individuals (farmers, ranchers, woodland owners) so that competition on the mass market fringe will be a very large threat to big energy companies. That doesn't exist for oil and gas. They may not be able to charge what their economic models say they need for biofuels because people like you and me can supply local markets more cheaply. So, don't be surprised if in the future legal controls are introduced to make sure the energy companies don't have unwanted competition.

 

[JohnnyBravo]

im sure the legal controls are already in the works. local markets are key not only in fuel. as the price of trasportaion of goods such as food and building supplies the market will open up to the smaller local guy. right now my biodiesel travels from montana to bc to alberta. its still cheaper to ship it than make it here. if i have to pay to run my car and heat my house i would rather buy fuel from somone local than any oil co. biofuel and wood heat are a drop in the bucket

 

[Outdoorsman]

I have to disagree with you fellas on the legal controls and such.

They won't need them (big power companies).

Just think about this, are there any legal controls on buying and selling farm products now? No.

Bulk chopped up grain stalks waste will be easy to deliver to the local grain mills, and then load onto rail cars with the very same auger & belt conveyors now used for grains. 100 car train loads will deliver the bulk fiber to the plants for conversion to fuels.

And, yes, the big players will add a good sized mark up I'm sure.

Hard to avoid when the grain companies & major refineries are owned by the big players already & thus have the capitol to partner with government on the new ethanol refineries.

 

[jebatty]

As to legal controls, the farmers/ag producers, as opposed to the marketing giants, will be a big deterrent to legal controls on the bio part of biofuel production, as will the many private landowners. In MN about 40% of the forest land is owned by nonindustrial private landowners. The nationwide figure must be fairly high too. This also will be a deterrent.

It's just when the money gets really big and is concentrated in relatively few hands, the middle and lower classes get screwed. Biofuel production might just be one more twist of the screw as this plays out.