Green Options

Move — to Louisiana:

According to SolarPowerRocks! Louisiana has a state tax credit of 50% for solar roof installations, the most generous state subsidy for solar — Combined with the 30% Federal tax credit for solar that we all get now; (you knew about that, right?) so in Louisiana you can put a solar roof up, paying only [...]

When we start talking about fossil fuels, most of us immediately think of coal, oil, and natural gas. But in the developing world where many people have little to no access to electricity — or even in places that do but have regular issues with outages — these are all secondary to kerosene.

As I start to stockpile bourbon (it’s made from at least 50% corn) as an investment strategy, I wonder why we are doing this to ourselves.

You practically can’t read a newspaper or news magazine without someone condemning the use of corn as an alternative fuel source these days. And who wouldn’t. The ethanol boom has driven the price of corn up, which in turn makes everything that uses corn go up in price. Corn is in a lot of products.

Why are we investing so much in corn-based fuel?

I think the answer is fear. Fear of rising oil prices. Fear of global warming. Fear of our dependency on foreign oil.

Are biofuel mandates and tax credits such a good idea? It may be wise to learn from the EU’s experience…

After passage of the new Renewable Fuel Standard (RFS) late last year (see earlier post), which mandates production of 15 billion gallons of corn-grain ethanol by by 2015, many of us are left contemplating the vast implications for US industry, not to mention commodity prices, auto manufacturing, and the greater course of biofuel research and development.

Rewind to 2003, when the European Union (EU) passed a biofuel directive requiring 5.75% of transport energy to come from biofuels by 2010, increasing to 20% by 2020. When paired with tax credits for biodiesel production, business boomed, at least for a while:

Mirroring the U.S. experience with ethanol, European companies rushed to make biodiesel out of a range of things, including rapeseed crops and used McDonald’s frying oil. Low raw-material costs and generous tax breaks meant margins were high. By last year, Europe’s annual capacity to make the fuel had climbed to 10 million metric tons from two million tons in 2003.

As with ethanol in the U.S., though, Europe now has a glut of biodiesel. The world consumed only nine million tons of biodiesel last year. Europe’s producers found buyers for just five million tons. The industry is in trouble, under pressure from soaring costs, disappearing tax breaks, less-costly imports and waning public support.

Heave ho and the horn blows. It’s departure time for another container ship. Port of embarkation: Savannah, Georgia. Destination: Adana, Turkey. About 25 of the containers on this ship are filled with Georgian cotton. Despite the enduring cotton crisis in America, half a million tons of the fiber pass through the port of Savannah each year, representing some 500 million dollars in exports that are shipped to countries around the world, including China, Pakistan

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