The Search For A Sugar Daddy

by Richard Lyon
Sun Aug 20th, 2006 at 01:38:06 PM EST

The US media is preaching the gosphel that there will be a way out of the present energy crisis without the pain of belt tightening. The Washington Post takes us on the exotic road to Rio.
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/19/AR2006081900842.html


Brazil's Road to Energy Independence
Alternative-Fuel Strategy, Rooted in Ethanol From Sugar Cane, Seen as Model

Record oil prices have made the world's energy landscape a darkly foreboding place this year, inhospitable to optimism and celebration. Except in Brazil.

It has been something of a banner year here, full of milestones. The government predicts that for the first time in its history, Brazil will achieve energy equilibrium, exporting as much oil as it imports. The production of sugar cane-based ethanol is expected to reach an all-time high. And just three years after the introduction here of flex-fuel vehicles -- cars that run on either ethanol or gasoline -- several major automakers predict that such vehicles will represent 100 percent of their production by the end of the year, eliminating gas-only models.

Sugar cane-based ethanol is one reason why the government predicts that for the first time in its history, Brazil will export as much oil as it imports.
Sugar cane-based ethanol is one reason why the government predicts that for the first time in its history, Brazil will export as much oil as it imports.

Since President Bush this year emphasized ethanol as one possible solution to U.S. oil dependence, Brazil has become a destination of choice for curious U.S. lawmakers and venture capitalists searching for a crystal ball in which to glimpse America's future. Ethanol is not solely responsible for Brazil's newfound energy independence -- domestic oil exploration has exploded in recent years -- but it has replaced about 40 percent of the country's gasoline consumption, according to Caio Carvalhal, an analyst with Cambridge Energy Research Associates in Rio de Janeiro.

There is a lot more to this article and it makes interesting reading. There are certainly many questions about the soundness of this approach, but I think it offers a pretty likely notion about the direction policy is likely to take in the immediate future.


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I'm sure I read a debunking of the viability of bio-fuels here about a month or two ago. They might have a use as a short-term stopgap or as an element of diversity, but not as a complete solution.

Trouble is it seems that this is a way of trying to finesse a confrontation with the real problem, our lifestyles are not energy efficient and too wasteful. If we confront those issues then others may become less pressing.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Mon Aug 21st, 2006 at 06:13:26 AM EST
Yup. We have only to link biofuels with the water scarcity diary to begin to appreciate the magnitude of the problem. Water intensive agricultural production of liquid fuels are problematic to say the least, and then there is soil erosion, and the destruction of wild growth areas, and, and, and...
from the comments of that diary, from a reuters article:
Water scarcity around the world was increasing faster than expected, with agriculture accounting for 80 percent of global water consumption, the world authority on fresh water management told a development conference in Canberra.

by someone (s0me1smail(a)gmail(d)com) on Mon Aug 21st, 2006 at 07:12:17 AM EST
[ Parent ]
Biofuels in Brazil are viable and possibly sustainable, due to lower fuel use per capita and lower population density than in the EU or US, and due also to the tropical climate. Brazil in fact does run 100% on ethanol (see the wikipedia article, it's quite fascinating).

The US will probably get on the corn ethanol boondoogle. I think the US would be able to use ethanol as a stop-gap measure to help ease the transition away from fossil fuels, but as they don't seem to want to transition away from fossil fuels, it will amount to nothing.

The "debunking" of biofuels that you refer to is afew's biofuels consultation paper. The conclusion I got from our analysis was that the EU barely has the spare agricultural capacity to run on 6% biofuels [biodiesel is hopeless except for farmers' own use, and we could run 10% ethanol fuel on the gasoline side].

I see two reasons why US might do better that the EU with biofuels: the lower population density (a factor of 3!) and the fact that the US is south of the EU (Madrid is on the same latitude as San Francisco or New York City) and so has a substantial subtropical zone (in the South East). If the US replaced its tobacco and cotton plantations with sugar crops they would do much better than Europe ever could.

If an international market for ethanol develops (and I can't see why not), the US might even be able to price Brazil out of its own ethanol production.

The EU can at best replace foreign oil dependency with foreign biofuel dependency.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Mon Aug 21st, 2006 at 07:21:18 AM EST
[ Parent ]
From everything I have read about biofuels, they sound like they fall far short of being a panacea. Their manufacture uses a substantial amount of energy, it contributes to environmental pollution and growing the biomass uses land that could be used for other purposes, food production, open space, etc.

Biofules might well have a constructive role to play in a broader and intelligently conceived energy policy. However, that is not the thrust of the WP article and others that are are appearing in the US mainstream media. Biofules are being touted as the SOLUTION to the energy crisis. All that's lacking is large amounts of venture capital and good old American know how. The American public will not have to trade in their SUVs for bicycles. Salvation is at hand.

by Richard Lyon (rllyon@gmail.com) on Mon Aug 21st, 2006 at 09:33:39 AM EST
Which is yet another disfunction of the current climate: we seem to be constantly looking for THE solution to every problem. Patchwork solutions don't seem to be acceptable - too complicated to sum up in a sound-bite I guess.
by Colman (colman at eurotrib.com) on Mon Aug 21st, 2006 at 09:36:28 AM EST
[ Parent ]
I would certainly agree with that comment, but I don't see anything new about that. The real news would be that the public finally realized that there is no quick fix. The snake oil salesmen will do their best to see that that doesn't happen.
by Richard Lyon (rllyon@gmail.com) on Mon Aug 21st, 2006 at 10:06:34 AM EST
[ Parent ]
there are some interesting correlations to make with the fast-fry food culture, whence many people are fueling their old jettas and such in the states.

not having such a plethora of choices in how we can dig our graves with our teeth here in yurp, we also have less used frying oil.

will america's love affair with obesity and plastic surgery have a role to play in transport fuel policy?

is it a metaphor?

if we shifted to a grain/bean diet, would this free up land grown to fodder, shifting to oil plants?

sorry about the garbled syntax, incipient alzheimers or too much italy, jury's still out...

There are no blank spots on the map any more, anywhere on earth. You want a blank spot on the map, you gotta leave the map behind. Jon Krakauer

by melo (melometa4(at)gmail.com) on Mon Aug 21st, 2006 at 08:01:24 PM EST
[ Parent ]
if we shifted to a grain/bean diet, would this free up land grown to fodder, shifting to oil plants?

The bean eaters would produce lots of methane gas that could be used for fuel.

by Richard Lyon (rllyon@gmail.com) on Mon Aug 21st, 2006 at 08:22:25 PM EST
[ Parent ]

actually, after a couple of years the body produces new enzymes to better digest the extra fibre,

a bit more marsh gas is preferable to a toxic industrial minestrone, imo, and think about how much less cowfarts!

There are no blank spots on the map any more, anywhere on earth. You want a blank spot on the map, you gotta leave the map behind. Jon Krakauer

by melo (melometa4(at)gmail.com) on Mon Aug 21st, 2006 at 08:32:03 PM EST
[ Parent ]
I think one can expect to see the plot thicken as people climb on the biofuel bandwagon. It is highly likely that corporate agribiz will decide that it is their patriotic duty to produce biofuel on western lands that require massive irrigation. The US is already on the brink of a variety on environmental crises related to its various irrigation systems. They've done an outstanding job of persuading the public to ignore those and keep filling up their swimming pools. Food for the SUV will be one more good reason to go on ignoring it.
by Richard Lyon (rllyon@gmail.com) on Mon Aug 21st, 2006 at 12:18:49 PM EST
I actually see a great deal of promise in cane and wood biofuels , and I doubt seriously that much of this development will be occurring in the arid or semiarid western US.

We have an enormous amount of idle cropland in the US east of or just west of the Mississippi River that could be brought on line.

Also state-of-the art cane mills are highly efficient in the distilltaion process, as are wood fired electrical generation plants.

For Eurasia, the trees grown for this use in the US could be grown roughly central Finland to N. of Vladivostok, and from the Caucasus to the Pacific in the South, in areas with suffiecient rainfall to support trees.

Call me Pollyanna if you wish, but I don't think of myself as a Pollyanna type of guy. The problem is, in my opinion, manageable long term.

FWIW, I've seen a lot of mopeds and motorcycles in Viginia with gasoline at $2.50-3.00 a gallon(non-Imperial).

"When the abyss stares at me, it wets its pants." Brian Hopkins

by EricC on Mon Aug 21st, 2006 at 04:38:28 PM EST
[ Parent ]
We have an enormous amount of idle cropland in the US east of or just west of the Mississippi River

Do you have details, or a reference?

What do you propose growing on this land?

Could you explain what you mean by "the trees grown for this use in the US"?

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Aug 22nd, 2006 at 03:58:02 AM EST
[ Parent ]
For the EU Biofuels Consultation we did a month or so ago, see European Energy in the ETWiki archive (the biofuel links are at the bottom of the European Energy list).

Also in the wiki, the Consultation page also has links. See these two past ET diaries in particular: Biofuels and the European Environment , and Limits to Substitutability: BioFuels.

My point of view, briefly: biofuels are no magic bullet. Current production (whether of ethanol or biodiesel) runs up against sustainability problems -- either because of the type of farming involved (water is a major issue) or (in sub-tropical countries in the case where developed economies would import biofuels from Brazil, Indonesia, Malaysia, etc) the destruction of rainforest to clear the very large areas needed.

Ethanol from cellulose ("second-generation" biofuels) may turn out to offer a sustainable solution to diversify liquid fuel supply, but this is not yet technically on line.

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Aug 22nd, 2006 at 03:40:13 AM EST
http://www.doa.state.wi.us/docs_view2.asp?docid=54#search=%22http%3A%2F%2Fwww.doa.state.wi.us%2Fdocs _view2.asp%3Fdocid%3D54%22

This is a description of a hybrid poplar fired poer plant in Wisconsin. The tree has similar caracteristics to the aspen, but grows faster and would be adaptable to the Eurasian zones I cited.

http://www.eia.doe.gov/oiaf/analysispaper/biomass/

Pretty good analysis here too. I think the process and the potentials are very interesting, but I am not an industrial engineer.


"When the abyss stares at me, it wets its pants." Brian Hopkins

by EricC on Tue Aug 22nd, 2006 at 11:11:13 AM EST
[ Parent ]
This is interesting but it's not biofuels in the sense of liquid fuels (ethanol, biodiesel), but biomass for electricity generation. Why I asked about it is that there may be future forestry plantations to provide cellulose for ethanol production, but I wasn't aware there were any plantations to date. The technology isn't yet ready.

AFAIK this kind of biomass electricity generation works. I don't know anything about costs. (I'm not an industrial engineer either...)

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Aug 22nd, 2006 at 11:29:49 AM EST
[ Parent ]
http://www.nytimes.com/2006/08/22/us/22illinois.html?_r=1&ref=us&oref=slogin


Governor Plans an Energy Shift for Illinois

Pointing to high fuel costs and dependence on foreign oil, Gov. Rod R. Blagojevich wants his state to overhaul its energy sources with a strategy that experts said would be among the nation's most ambitious, including replacing half its current supply of gasoline from imported oil with that made from homegrown products in little more than a decade.

Mr. Blagojevich's aides said he would call for financial incentives to build up to 20 ethanol plants, five biodiesel plants and four facilities that would create ethanol from wastes like corn husks and wood pulp in Illinois, where five ethanol production plants operate now and where three more are under construction.

by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 09:49:08 AM EST
Let's see...

Department of Energy: Petroleum Profile: Illinois (January 2006)

# Population: 12,713,634 (2004)
# Total Petroleum Consumption: 27.3 million gallons per day (2002)
# Gasoline Consumption: 14.1 million gallons per day (2002)
# Distillate Fuel Consumption: 4.6 million gallons per day (2002)
# Liquefied Petroleum Gas Consumption: 2.3 million gallons per day (2002)
# Jet Fuel Consumption: 1.6 million gallons per day (2002)
That's 5.15e9 gallons of gasoline per year. Ethanol has 2/3 the energy content (by volume) of gasoline, so that's the equivalent of 7.7e9 gallons of ethanol per year. How much ethanol can Illinois produce? Illinois would be using its corn.

Department of Agriculture: Theoretical Ethanol Yield Calculator

Theoretical Yield in gallons of ethanol per dry ton of feedstock
Corn Grain     124.4
Corn Stover     113.0
USDA-NASS: 1997 Crop Year - Based on Production
-------------------------------- State=Illinois -------------------------------

                                      Planted Harvested
                                        Acres   Acres       Yield Production
 Rank Crop                    Unit      (000)   (000)    Per Acre   (000)

   2  Corn for Grain             Bu 11,200.00 11,050.00    129.00  1,425,450
  14  Corn for Silage           Ton       .      120.00     16.50      1,980

About 90% of the planted acreage in the state of Illinois is corn. Apparently a bushel of corn at 15% moisture weighs 56lb, but the USDA ethanol yield figures are per dry ton (2000lb)... Is 56lb of a standard bushel 49lb of "dry" weight? That would mean 41 standard bushels in a "dry ton". Anyway, the 1997 production is about 34.7M dry tons of corn, which would be enough to produce 4.3e9 gallons of ethanol per year, and that would be by turning its entire corn grain production into ethanol.

Nothing is 'mere'. — Richard P. Feynman
by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 10:59:06 AM EST
[ Parent ]
What I think is significant is the way that the politicians are jumping on this bandwagon as the path to energy salvation. While this is a classically American pop culture approach to a problem, we can see that other countries like Brazil are doing their versions of the same thing.

It is likely that some amount of ethanol production could serve a constructive purpose, but what we have is people wanting to pour huge amounts of development resources into its production to the exclusion of things like more efficient transportation systems. We will soon see the emergence of an ethanol lobby to rival the oil lobby.

by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 11:16:49 AM EST
[ Parent ]
We will soon see the emergence of an ethanol lobby to rival the oil lobby.

We like to call it "the farm lobby".

by Colman (colman at eurotrib.com) on Tue Aug 22nd, 2006 at 11:23:39 AM EST
[ Parent ]
The farm lobby already exists in the US...

There will be a fight for the corn between the ethanol and beef factions of the farm lobby.

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 11:28:06 AM EST
[ Parent ]
There is extensive cross ownership between agribiz and oil biz. A number of the large corporate farms in California are owned by the major oil companies. The make a concerted effort to exert control over the irrigation systems.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 11:39:24 AM EST
[ Parent ]
What I think is significant is the way that the politicians are jumping on this bandwagon as the path to energy salvation. While this is a classically American pop culture approach to a problem, we can see that other countries like Brazil are doing their versions of the same thing.

The difference is that Brazil has been running pretty much on 100% ethanol since the 1970's, so for them it's not a pop-culture fad.

Now, when the governor of Illinois says he's going to get 50% of the state's fuel from biofuels, does he realise he's proposing to turn the state's entire agricultural production into biofuel feedstock crops?

Brazil has a lower population density, a lower fuel use per capita, and a tropical climate which allows sugar cane production [with twice the ethanol yield of corn]. What works in Brazil need not work in the US [and even less in Europe].

Nothing is 'mere'. — Richard P. Feynman

by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 11:42:41 AM EST
[ Parent ]
I would expect that the expansion of sugarcane production in Brazil would result in the clearing of more rain forest. This has important ecological implications for global climate change. Therefore dealing with developments in Brazil in isolation, would seem to be undesirable.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 12:47:52 PM EST
[ Parent ]
If the US and Europe start replacing their oil with Brazilian ethanol we have a problem.

Nothing is 'mere'. — Richard P. Feynman
by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 12:54:40 PM EST
[ Parent ]
Yep and such trade arrangements seem like a very realistic possibility.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 12:57:53 PM EST
[ Parent ]
Isn't comparative advantage a great thing for the environment?

Nothing is 'mere'. — Richard P. Feynman
by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 12:58:56 PM EST
[ Parent ]
Come to think about it, what is even more likely is ethanol trade between Brazil and China. China is in an energy bind and needs all of its land for food production.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 02:03:56 PM EST
[ Parent ]
So a price war between China and the US and no ethanol left affordable for the Brazilians?

Nothing is 'mere'. — Richard P. Feynman
by Migeru (migeru at eurotrib dot com) on Tue Aug 22nd, 2006 at 02:47:20 PM EST
[ Parent ]
China has been busy for some time building trade relations in Latin America that have the potential to threaten US economic dominance in the region. My prediction is China is much more likely to follow in the footsteps of Britain and then the US in developing asymmetrical economic relationships(economic imperialism if you prefer)than to embrace its brothers and sisters in third world solidarity. There are so many people in Latin America that hate the US they will rush to embrace anybody that rides in on a white horse.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 02:56:11 PM EST
[ Parent ]
I looked up this advocacy group I'd seen when doing the EU Biofuels work: American Coalition for Ethanol

This is about Middle West corn for ethanol.

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Aug 22nd, 2006 at 03:23:49 PM EST
[ Parent ]
They could use the picture American Gothic for their logo.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 03:33:34 PM EST
[ Parent ]
Interesting to know how much idle cropland there is in Illinois.

Ethanol from corn is part of the picture tho, I think.

Here's a nice link, I think to sugar production:

http://www.sei.se/energy/sugarcane/7%20Producing%20sugar,%20ethanol%20and%20electricity.PDF#search=% 22Producing%2C%20sugar%2C%20ethanol%2C%20and%20electricity%22

Got a better one on sugar, will try to find it.

"When the abyss stares at me, it wets its pants." Brian Hopkins

by EricC on Tue Aug 22nd, 2006 at 11:23:47 AM EST
[ Parent ]
What is "idle cropland"?

In the EU there is "set-aside" land that is left fallow with a Common Agricultural Policy subsidy to compensate the farmer for non-use (this was done to reduce production). Is there anything similar in the US?

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Aug 22nd, 2006 at 11:36:27 AM EST
[ Parent ]
Yes indeed there is. It goes back to the New Deal and the US taxpayers are paying for it to the tune of billions of dollars. The scams and scandals associated with this program are legion.
by Richard Lyon (rllyon@gmail.com) on Tue Aug 22nd, 2006 at 11:41:07 AM EST
[ Parent ]
Same Game. Different Continents.

"When the abyss stares at me, it wets its pants." Brian Hopkins
by EricC on Tue Aug 22nd, 2006 at 12:33:14 PM EST
[ Parent ]


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